Need Of Financial Advisor For Investment In Stock Market

PRESENTATION ON NEED OF FINANCIAL ADVISOR FOR INVESTMENT PRESENTED TO PRESENTED BY MS NEHA NAIR TARA NAND CHOUDHARY

CONTENTS  Project title  Objective of project  Methodology  Sampling  Sip  About IL&FS Investsmart  Learnings  Analysis and Finding  Conclusions  Recommendation

PROJECT TITLE NEED OF FINANCIAL ADVISOR FOR INVESTMENT IN STOCK MARKET IN ONLINE TRADE

OBJECTIVES Objective of the Project:  Primary objective- To find out if there is NEED OF FINANCIAL ADVISORS FOR ONLINE INVESTMENT IN STOCK MARKET  Secondary objective-  To know offline and online investment in stock market.  Investor’s perceptions on online investment.  Investor’s perception of financial advisors for online investment.  How much worthy these financial advisors for online investment?  Why/why not do people choose online investment?  Which of different broking organization gives the most reliable information/tips?  To find out the work of IL&FS INVESTSMART.  To find out the reasons of success of ILFS INVESTSMART.

METHODOLOGY  Both primary as well as secondary data collection.  In primary method ,a quantitative exploratory study was conducted by interviewing the investors in Ahmedabad. This was done by formulating a proper questionnaire.  In the secondary method we browsed through various websites, books, magazines, newspapers, periodicals etc. to find out various avenues available for financial advisor.

SAMPLING  Working population : investors in stocks, mutual funds, real estate, gold etc. at selected brokerage firms, investment consultants; working professional.  We personally interacted with the working professional who had made investments.  We had used simple random-sampling within the selected working population.  Sample size selected was 204 because working population is homogenous (i.e. interacting directly with the investors). Moreover, there are constraints like time, money

PROBLEMS FACED & STRATEGIES TO SOLVE THEM….. 1. Data calling /Meeting to customer 1). Why should customer pay in advance for services? ANS. “MODEL PORTFOLIO” 2). Why offline trader need to shift to online services  TOLL FREE NO:- 1800-22-4444  DO IT THEIR OWN 3). What is guarantee of Investment return? ANS. From company side, I can say 15% but not written.

CONTD… 2. Canopy activity  Size of canopy (Dispute in Maninager)  Too heavy to carry 3.Umbrella activity  Too light weight so some time falls down  One person required to stand along with umbrella 4.Calling to references  Where did you get my no. 5. Trainee recruitment activity  Not enough references

CONTD… 6. Called calling 1) In corpotates I. Get stuck at “reception” Sol: Make a call & get an appointment. II. Permission for “corporate presentation” Ex. NID(National Institute of Design) Sol. Permission was not given from higher authority so, We did cold calling on the road out side NID 2) By Road side I. Hot weather- No one wants to stand even for 5 min. Sol. Do called calling either in Morning (Like at IIM) OR in evening (like in GHATLODIA).

FINDINGS AND ANALYSIS

DO YOU INVEST IN STOCK MARKET?

WHICH TYPE OF INVESTOR YOU ARE?

WHICH MODE DO YOU USE FOR INVESTMENT?

WHAT IS YOUR FREQUENCY OF INVESTMENT?

TYPE OF INVESTOR * MODE OF INVESTMENT Which mode do you use for your investment? Offlin Online e Both Total Which type of Sho investor you are? rt 43 5 5 53 ter m Lon g 12 16 10 38 ter m Bot 13 9 53 75 h

INVESTMENT AVENUES AND THEIR MEAN Investment option Mean Equity 4.31 Bonds 1.64 Mutual funds 3.60 fixed deposite 3.74 life insurance 3.78 real estate 2.24 gold & silver 2.70

INVESTMENT AVENUE Mutu gold al fixed life real & Equi Bon fund depo insur estat silve othe ty ds s site ance e r rs rated 140 5 3 2 1 13 5 1 rated 8 3 22 14 34 4 10 2 rated 4 7 5 19 41 3 10 3 rated 4 5 4 4 11 4 9 0 rated 5 1 0 1 1 2 0 3 Total 153 20 35 40 89 24 37

REASONS BEHIND CHOICE OF INVESTMENT OPTIONS 70 60 50 40 64 30 62 20 10 13 17 10 0

PROBLEM FACED DURING ONLINE TRADING Frequency Valid Percent Frequently 24 14.5 Sometimes 90 54.2 Rarely 34 20.5 Not at all 18 10.8 Total 166 100.0

WHY DO PEOPLE NEED A FINANCIAL ADVISOR?

TYPE OF INVESTOR * RATE OF FINANCIAL ADVISOR How would you rate the overall need of Financial Advisors for investment in stock market? Total 1 2 3 4 5 6 7 8 9 10 1 Which Short type of term investor 7 4 2 3 9 6 9 7 5 1 53 you are? Long term 4 1 2 5 5 7 5 5 2 2 38 Both 4 0 2 4 6 15 16 14 13 1 75 Total 15 5 6 12 20 28 30 26 20 4 166

SATISFACTION LEVEL OF FINANCIAL ADVISOR’S SERVICES Frequency Valid Percent Highly satisfied 11 12.6 Considerably Satisfied 41 47.1 Reasonably Satisfied 21 24.1 Unsatisfied 11 12.6 Highly Unsatisfied 3 3.4 Total 87 100.0

SERVICES OF A FINANCIAL ADVISOR Rank Mean Rank PMS 2.01 RMS 2.07 +ve investment result 1.91

RANK OF BROKING COMPANIES Broking Companies Mean Rank Rank of sharekhan 2.25 Rank of ICICIdirect 2.67 Rank of IL&FS Investsmart 3.00 Rank of Kotak Security 4.13 Rank of India Infoline 4.26 Rank of Reliance Money 4.69

INVESTORS’ BROKING COMPANY & IL&FS PERCEPTION Do you think IL&FS INVESTSMART Securities Limited is the best Financial Advisor Company? yes no can't say total With which Sharekhan 2 16 3 21 Broking ICICIdirect 2 3 7 12 Company/Co IL&FS mpanies you Investsmart 37 7 4 48 are Kotak associated? 2 7 8 17 Securities India Infoline 1 12 8 21 Relaince Money 1 8 4 13 Total 45 53 34 132

INFLUENCING FACTOR OF COMPANIES

INFLUENCING FACTOR OFIL&FS

INVESTORS’ OPINION ABOUT SERVICES CHARGED BY IL&FS Frequency Percent Very high 18 33.3 High 25 46.3 Reasonable 11 20.4 Negligible 0 0 Total 54 100

SATISFACTION LEVEL OF IL&FS

PROBLEM WORKING WITH IL&FS

IS IL&FS THE BEST COMPANY?

LEARNINGS FROM “SIP”  Training of products  Marketing & selling  Data calling  Canopy and Umbrella marketing –  Cold-calling -  Meeting with references  Trainee recruitment activity

FINDINGS  During the survey service class people showed positive attitude in share trading.  Most investors are trading online and daily and choosing equity.  Those who have Interest in share trading most of them are either trading themselves or taking help of financial advisor.  Most of people are satisfied with their financial advisor.  The investor of Ahmedbad grading sharekhan as the best broking company and IL&FS as third from the top.

CONCLUSION  More investors are willing to invest in stock market rather than investing in debt and bonds instruments.  Equity is the preferred instrument.  People choose financial advisor due to lack of time and lack of knowledge.  Lack of knowledge among investors.  Investors are brand and service as well as brokerage charge conscious.  Communication gap between investors and IL&FS.

RECOMENDATIONS  Need to create awareness about the brand.  Can attract more clients by providing free tips to them.  Need to focus on advertisement.  Need to create awareness among investors.  More efforts towards personalized services.  Financial results of the company should be provided to investors.  Their should be some decentralization.

THANK YOU

Need Of Financial Advisor For Investment In Stock Market

by Taranand on Jun 07, 2009

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Need Of Financial Advisor For Investment In Stock Market — Presentation Transcript