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Iifl total venketeswar project


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Iifl total venketeswar project

  1. 1. PROJECT REPORT ON “CUSTOMER SATISFACTION IN ONLINE TRADING’(With Special reference to Indianinfoline Limited, Bhubaneswar) Submitted to Bputfor partial fulfillment of the requirement for the award of the degree of Master in Business Administration SUBMITTED BY Venketeswar choudhury, MBA 3rd Semester, REGD NO-1006286069 UNDER THE GUIDANCE OFMR. SWADHIN SAHOO MR P.K SAHOO SALES MANAGER, ASST. PROFESSORINDIAINFOLINE LTD,BBSR DEPT.OF FINACE SRUSTI ACEADEMY MANAGEMENT 86
  2. 2. (Affiliated to BPUT, University)PATIA, BHUBANESWAR CERTIFICATE BY THE HEAD OF THE DEPARTMENT Mr. P.K HAOO Department, Finance. This is to certify that MR.VENKETESWAR CHOUDHURY abonafide student of Master in Business Adminstration(M.B.A) hascompleted the project entitled “ Dirict marketing with customersatisfaction surveya (with reference to indiainfolineLtd.”. This projecthas been submitted as a partial fulfillment of the requirement for theMaster in Business Adminstration Examination, 2010. To the best of my knowledge no work with such caption andcontent has been submitted to any other University or institution for theaward of any degree.Date:-Place: - (MR. P.K. SAHOO) 86
  3. 3. CERTIFICATE BY THE GUIDEMr. P.K SHAOOFaculty Member,Finance. This is to certify that MR Venketeswar choudhury, a bonafidestudent of Master in Business Adminstration has completed the projectentitled “ Direct marketing Customer Satisfaction survey (withreference to indiainfoline Ltd., Bhubaneswar)”. This project has beensubmitted as a partial fulfillment of the requirement for the MBAExamination, 2010. Date:- Place: - (MR. P.K SAHOO) 86
  4. 4. ACKNOWLEDGEMENT The joy of creativity! Probably that’s why I am drawn to give mybest in preparation of this project book. Though the cover of the bookbears only my name, it reflects the collective wisdom of numerouspeople and websites to whom I met or gone through. They developedzeal in me to learn, to grow, to inspire and also to perspire. I put on record the unflinching support of Mr. AISHKU.PRADHAN, Secretary which has sustained me all through. I place my sincere and profound thanks to DR.G.K SHARMA,Principal and Mr. N.S NANDA, Head of the Department, P.G.Department of Finance and Management, SAM for their kind guidance,meticulous care and concern in enabling me to study the numerousaspects. I gratefully acknowledge my guide, Mr. P.K SAHOO, FacultyMember(AST.PRO), Department of finance and Management, SAM forhis advice, supervision, and crucial contribution, which made him abackbone of this research and so to this project. His involvement withhis originality has triggered and nourished my intellectual maturity thatI will benefit from, for a long time to come. I am grateful in everypossible way and hope to keep up our collaboration in the future.My sincere thanks also goes to Mr. SWADHIN SAHOO(SALESManager),Indiainfoline limited. Bhubaneswar for offering me the 86
  5. 5. summer internship opportunities in their groups and leading meworking on diverse exciting projects. I would like to thanks Miss Manani pradhan & priynka patnyakNon-teaching staff members of the institute for their kind help withoutwhich it was impossible to travel a long distance and their direct orindirect interactions between us will enchant and inspire me for a longtime. (Mr venketeswar chouhury) ROLL NO. 1006286069 86
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  7. 7. CHAPTER – 1INTRODUCTION1.1 INTRODUCTION Directly satisfaction to customer personal marketing basedinvestment activity that involves no direct involvement of the broker.There are many leading cutomer satisfaction portals in India along withthe Directly convince to customer platforms of the biggest stock houseslike the National stock exchange and the Bombay stock exchange. Thetotal portion of online share trading India has been found to have grownfrom just 4 per cent of the total turnover in 2008-09 to 20 per cent in2010-11. The investor has to register with an online trading portal and get intoan agreement with the firm to trade in different securities following theterms and conditions listed down on the agreement. The orderprocessing is done in correct timings as the servers of the online tradingportal are connected to the stock exchanges and designated banks allround the clock. They can also get updates on the trading and check thecurrent status of their orders either through e-mail or through theinterface. Brokerages also provide research content on their websites, 86
  8. 8. such that the clients can take their own decisions on stocks beforeinvesting. The major financial products and services of the Online trading inIndia are like equities, mutual funds, life insurance, general insurance,loans, share trading, commodities trading, portfolio management andfinancial planning. In spite of many private stock houses at present involved in onlinetrading in India, the NSE and BSE are among the largest exchanges.They handle huge daily trading volumes, supporting large amounts ofdata traffic, and possessing a countrywide network. The automatedonline systems used for trading by the national stock exchange and theBombay stock exchange are the NIBIS or NSE’s Internet BasedInformation System and NEAT for the national stock exchange and theBSE Online Trading system or BOLT for the Bombay stock exchange.Customer satisfaction is a measure of how products and servicessupplied by a company can meet the customer‘s expectations. Customersatisfaction is still one of the single strongest predictors of customerretention. It’s considerably more expensive to attract new customersthan it is to keep old ones happy. In a climate of decreasing brandloyalties, understanding customer service and measuring customersatisfaction are very crucial. There is obviously a strong link betweencustomer satisfaction and customer retention. Customer’s perception ofservice and quality of product will determine the success of the productor services in the market. 86
  9. 9. With better understanding of customers’ perceptions, companies candetermine the actions required to meet the customers’ needs. They canidentify their own strength and weaknesses, where they stand incomparison to there competitors, chart out path future progress andimprovement. Customer’s satisfaction measurement helps to promote anincreased focus on customer outcomes and stimulate improvement s inthe work practices and processes used within the company.Customer expectations are the customer defined attributes of yourproduct or service you must meet or exceed to achieve customersatisfaction. There are many reasons why customer’s expectations arelikely to change over time. Process improvement s, advent of newtechnology , changes in customer’s priorities, improved quality ofservices provided by competitors are just a few examples.There is growing competition between broking firms in post reformIndia. For investor it is always difficult to decide which broking firm tochoose. Research was carried out to find which brokerage house peopleprefer and to figure out what people prefer while investing in stockmarket. This research aims is to analysis stock broker on the basis of theirservices, products, growth and their subsidiaries. Because stock brokersare one of the main participants in stock exchanges world wide, theyoften act as an agent for there clients, making trades on their behalf.They also act as advisors, providing suggestion to their clients on what 86
  10. 10. stocks to buy and sell. They have always providing the latest services tothere clients for fulfillment of the customer satisfaction.1.2 PURPOSE OF THE STUDYThe main purpose of the study is to know the expectation of thecustomers and the satisfaction levels of investors with the servicesprovided by indiainfoline Limited.In the present competitive environment it is very crucial to everybusiness firm to ensure satisfaction to its customer s. according to onesurvey it was found that it costs five time more to attract a newcustomer than to retain an existing customer. So with all theseparameters taking into consideration one can say that it is very importantto provide goods and services that satisfy customers needs or wantsirrespective of the industry or scale of the business in which a firm isoperating.Here the main purpose of the survey is to know the various factors thatare very important in satisfying the customers’ needs and to know howindiainfoline Limited is insuring its customer satisfaction.The expectations of customers are very from one customer to the othercustomer. For example: - some customers are only concerned about thereturns that they are getting in a fund but at the same time there are 86
  11. 11. some other customers who are very specific about the location,ambiance and front line employees ‘ interaction and some otherparameters. It is very difficult to any business firm to satisfy all theexpectations of all customers but there are some common factors that areessential to fulfill.1.3 OBJECTIVES OF THE STUDY  To know the various services provided by the indiainfoline Limited.  To have a comparison between indiainfoline Limited and other broking firms.  To study the satisfaction levels of customers in indiainfoline Limited  How IIFL is best service providers as a stock broker in the region.  To know about the awareness towards stock brokers and share market.  To study about the effectiveness and efficiency of IIFL in relation to its competitors.  To study about whether people are satisfied with IIFL and management system or not. 86
  12. 12.  To study about the difficulties faced by persons while trading in IIFL.1.4 RESEARCH DESIGN The design of the project report is a random sampling.1.5 RESEARCH METHODOLOGY This is a Descriptive research for which there is a comparison within the different stock brokers in relation to customer satisfaction towardsthe best service provider.1.6 SOURCES OF DATA The present research study is based on two kinds of data, primaryand secondary data. The primary data was collected through observationand well prepared questionnaires and the secondary data was collectedfrom various journals like business today, India today, businessstandard, and the annual report of the company. It helps to understandthe topic clearly.1.7 DATA ANALYSIS AND TECHNIQUES These data are analyzed manually. The sampling technique isstratified random sampling. “A sample design is a definite plan forobtaining a sample from a given population. It refers to the technique orthe procedure the researcher would adopt in selecting item for the 86
  13. 13. sample”. Generally sample design is two types i.e.:- sampling units andsize of sample.1.8 SAMPLING UNITS Sampling unit may be a geographical one, such as state, district,village etc. the researcher will have to decide one or more of such unitsthat he has to select for his study. In my research study Bhubaneswarcity as a sampling unit.1.9 SIZE OF SAMPLE This is refers to the number of items to be selected from theuniverse to constitute a sample. In my research the sample size is 40.1.10 LIMITATIONS OF THE STUDY  Size of the research may not be substantial.  There may be biasness in information by market participants.  Complete data was not available due to company privacy and secrecy.  Lack of time as 1 month and 2 weeks is not sufficient to make a study on a topic like customer satisfaction towards the service provided by the broking house. 86
  14. 14. 1.11 CHAPTERISATION 86
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  16. 16. CHAPTER – 2 COMPANY PROFILE2.1 COMPANY PROFILEINDIAINFOLINE Limited is a leading full service investment bankfounded in 1995 offering a wide range of financial services and wealthmanagement solutions to institutions, corporations, high–net worthindividuals and families. The firm has rapidly expanded its footprint toover2500 locations across India with international presence inSingapore Exchange (SGX) & Sri Lanka(Colombo stockexchange) . Founded by Mr. NIRMAIL JAIN (CEO) and Mr.R.VENKATARAMA(Manageing director) of this group. , the grouptoday employs over 18000 professionals throughout India and itsinternational offices.The firm’s philosophy is entirely client centric, with a clear focus onproviding long term value addition to clients, while maintaining thehighest standards of excellence, ethics and professionalism. The entirefirm activities are divided across distinct client groups: Individuals,Private Clients, corporate and Institutions. indiainfoline has been namedThe Best broking firm house awarded in India. The firm has emerged awinner across all key segments in india’s largest survey of high networth individuals in India. 86
  17. 17. 2.2 BOARD OF DIRECTORSTABLE NO. – 2.1TABLE TITLE – MANAGEMENT OF THE ORGANISATION SL. NAME DESIGNATION NO. 1 Mr. Nirmal jain Chairman 2 Mr. R.venkataramana Managing Director 3 Mr. Kranti sinha Ind-Managing Director 4 Mr. Arun kumar parver Ind-Director 5 Dr. Nitas vikamasy Ind-Director 6 Mr. C. D. Arha Director 7 Mr. Ajit Bhushan DirectorSOURCE:- www.indiainfoline.com2.3 DEPARTMENTS OF INDIAINFOLINE LIMITEDThe following are different departments of indiainfoline Limited1. Private Wealth ManagementClient TestimonyWe have been ranked for the 1st c broking from house onsecutive yearas the #1 holding company? Overall BY OUR CLIENTS in aninternational Poll (2010& 2011) conducted by the IIFL magazine. We 86
  18. 18. believe that this is testimony to the faith and trust that our clients have inour advisory and us.Client-centric EthosOur belief is that there is a spark in every person that distinguishes himas an individual, and defines his aspirations and goals. A WealthManagement solution for every individual is therefore unique.You deserve a customized solution for managing your wealth that isspecific to your needs and not a generic template – based offering. Strong Research Capabilities Our Advisory process is rooted in the strength of our research team, giving us expertise across various asset classes. Our Economic Research team has been ranked among the top 20 in Asia by Institutional Investor and is one among the only 2 teams from India to feature in this list. 86
  19. 19. PRODUCT AND SERVICES PROVIDEDProducts Equities I Bonds I Mutual Funds I Derivatives Managed Investment Services / PMS Commodities FX Trading Welth Management Asset Management Investment Banking Insurance Fixed Diposit Lones Gol Bonds Offshore other small InvestmentsServices1. Creation of a customized financial strategy2. Diversification of assets based on a formal process of asset allocation 86
  20. 20. 3. Active tracking, monitoring and review of portfolios4. Creation of private trusts5. Tax planning6. Estate planning7. Structuring of family wealthTeam MemberMr. Nirmal JainChairman , India InfolineLtd. MR.Nirmal Jain is the founder and Chairman of India Infoline Ltd. He is a PGDM (Post Graduate Diploma in Management) from IIM (Indian Institute of Management) Ahmedabad, a Chartered Accountant and a rank-holder Cost Accountant. His professional track record is equally outstanding. He started his career in 1989 with Hindustan Lever Limited, the Indian arm of Unilever. During his stint with Hindustan Lever, he handled a variety of responsibilities, including export and trading in agro-commodities. He contributed immensely towards the rapid and profitable growth of Hindustan 86
  21. 21. Lever’s commodity export business, which was then the nation’s as well as the Company’s top priority. He founded Probity Research and Services Pvt. Ltd. (later re- christened India Infoline) in 1995; perhaps the first independent equity research Company in India. His work set new standards for equity research in IndiaMr. R. VenkataramanManaging Director , India Infoline LtdMr. R Venkataraman, Co-Promoter and Executive Director of IndiaInfoline Ltd, is a B.Tech (electronics and electrical communicationsengineering, IIT Kharagpur) and an MBA (IIM Bangalore). He joinedthe India Infoline Board in July 1999. He previously held seniormanagerial positions in ICICI Limited, including ICICI SecuritiesLimited, their investment banking joint venture with J P Morgan of US,BZW and Taib Capital Corporation Limited. He was also the AssistantVice President with G E Capital Services India Limited in their privateequity division, possessing a varied experience of more than 19 years inthe financial services sector. 86
  22. 22. Mr. Nilesh VikamseyIndependent Director , India Infoline Ltd.Mr. Nilesh Vikamsey – Board Member since February 2005 - is apracticing Chartered Accountant for 25 years and Senior Partner at M/sKhimji Kunverji & Co., Chartered Accountants, a member firm of HLBInternational, a world-wide organisation of professional accountingfirms and business advisers, ranked amongst the top 12 accountinggroups in the world. Mr. Vikamsey headed the audit department till 1990and thereafter also handled financial services, consultancy,investigations, mergers and acquisitions, valuations and due diligence,among others. He is elected member of the Central Council of Instituteof Chartered Accountant of India (ICAI), the Apex decision makingbody of the second largest accounting body in the world, 2010–2013.Mr. Kranti SinhaIndependent Director , India Infoline Ltd.Mr. Kranti Sinha — Board member since January 2005 — completed hismasters from the Agra University and started his career as a Class IOfficer with Life Insurance Corporation of India. He served as theDirector and Chief Executive of LIC Housing Finance Limited fromAugust 1998 to December 2002 and concurrently as the ManagingDirector of LICHFL Care Homes (a wholly-owned subsidiary of LICHousing Finance Limited). He retired from the permanent cadre of theExecutive Director of LIC; served as the Deputy President of the 86
  23. 23. Governing Council of Insurance Institute of India and as a member ofthe Governing Council of National Insurance Academy, Pune apart fromvarious other such bodies. Mr. Sinha is also on the Board of Directors ofHindustan Motors Limited and Cinemax (India) Limited Mr. A. K. Purwar Independent Director , India Infoline Ltd.Mr. Purwar is currently the Chairman of IndiaVenture Advisors Pvt.Ltd., investment manager to IndiaVenture Trust – Fund I, the healthcareand life sciences focussed private equity fund sponsored by the PiramalGroup. He has also taken over as the Chairman of IL & FS RenewableEnergy Limited in March 2008 and India Infoline Investment ServicesLtd in November 2009. He is working as Independent Director inleading companies in Telecom, Steel, Textiles, Power, Autocomponents, Renewable Energy, Engineering Consultancy, FinancialServices and Healthcare Services. He is an Advisor to Mizuho Securitiesin Japan and is also a member of Advisory Board for Institute of IndianEconomic Studies (IIES), Waseda University, Tokyo, Japan.About Investment BankingWe are a leading investment bank focused on the middle-market in Indiaand aim to provide a level of service, dedication and expertise that is 86
  24. 24. unmatched in the industry today. Our firm’s core principles of integrity and dedication to the success of our clients are reflected in all that we do. We offer our client’s high-quality, unbiased advice. We have assembled a group of talented and experienced professionals who are domain experts and have been recruited from a wide variety of leading global financial institutions. Our professionals concentrate on using their time and their “intellectual capital” to solve complex financial problems and executing specialized transactions for you. We strive to offer clients more senior-level attention than may be available from many of our competitors.Our advisory business serves as an independent sounding board and advisor on every strategic, financial and operational issue our clients face in the daily management of their businesses. We view our clients as partners, which ultimately means that our focus and dedication extends far beyond that of traditional investment banking advisory services – and includes a commitment to senior level focus. Over the course of their careers, members of our senior team have advised on over $30 billion in transactions.• Exploring, evaluating and recommending financial and strategic alternatives• Assessing potential acquirers and targets and providing valuation analyses.• Negotiating and Consummating transactions. 86
  25. 25. • Advising on transaction structuring, timing, pricing and potential financing.• Providing Fairness opinions indiainfoline Limited (IIFL), one of the leading full service investment bank in India. Extensive knowledge and coverage of the private equity community not just in India but around the world allows Indiainfoline Limited to bring strong proprietary investment ideas to financial sponsors and to optimize outcome through identifying high–quality financial buyers for our middle–market clients. We have built a specialized practice in advising private equity firms that want to invest in India but do not have a presence here. Exploring value maximization strategies. Developing company positioning and all documentation for potential buyers. Developing buyers lists and managing all communications with potential buyers. Managing due diligence, data rooms, site visits and all buyer investigations. Evaluating bids and negotiating and executing final transactions and documentation. 86
  26. 26. Corporate restructuringOur dedicated, experienced Corporate Restructuring team can assistdebtors and creditors with restructuring leverage in a dynamic, globaleconomy by drawing on our deep industry knowledge and broadnetwork of commercial bankers, private equity leadership and hedgefund managers.Developing the comprehensive restructuring and reorganization plansand assisting in the court administered approval process.Advising on the ultimate structuring of a potential sale orrecapitalization Capital Market Serviceindiainfoline is a leading underwriter of public offerings and privateplacements for middle–market companies in India. We’re known for ourinnovative financing solutions that support complex corporate strategies,as well as our long–standing client relationships. Our capital marketsbusiness seeks to leverage our operational expertise and world classinstitutional and retail distribution platforms to partner with existingowners and management to maximize value at the time of a public or 86
  27. 27. secondary market offering. Over the course of their careers, members of our senior team have raised over $20 billion in equity and debt capital for companies around the world.• Assessing a company’s optimal capitalization and sources of incremental capital.• Developing a target investor group and effectively positioning the company’s story to the investor community.• Preparing all investor materials and managing all communications with potential investors.• Managing the due diligence process and all investor inquiries.• Assisting with necessary documentation to expeditiously execute a successful capital raising.• Assessing the most appropriate group of investors to assist the company in its long–term plan. COMPANY DESCRIPTION: Indiainfoline Limited is a leading full service investment bank founded in 1996 offering a wide range of financial services and wealth management solutions to institutions, corporations, high–net worth individuals and families. The firm has rapidly expanded its footprint to over 2500 locations across India with international presence in Singapur & Sri lanka. Founded by IIFL Limited. The firm’s philosophy is entirely client centric, with a clear focus on providing long term value addition to 86
  28. 28. clients, while maintaining the highest standards of excellence, ethics andprofessionalism. The entire firm activities are divided across distinctclient groups: Individuals, Private Clients, Corporates and Institutions.IIFL has been named The Best broking fram house in India. The firmhas emerged a winner across all key segments in Asiamoney’s largestsurvey of high net worth individuals in India. In order to satisfy the growing demand of Indian investors fortrading offshore investment products, Spread Co has designed andcreated a new financial product which incorporates the benefits oftraditional share trading and offering leverage. The new asset class isknown as Premium Securities. indaiinfoline Limited Group has enteredfor a Introductory Broker relationship with Spread Co to introduceclients for this financial product. Premium SecuritiesPremium Securities are the new and exciting way to trade world marketsall from one online trading account at your fingertips. Our goal is tomake your Premium Security trading experience efficient and enjoyable,and support you in what you are looking to achieve.Puts you in control of your own trading 86
  29. 29. You can see the prices you are trading at and can choose to dealstraightaway or place orders to deal at a future time. You can trade arange of financial products - all from one account. You really are incontrol of your own trading.Deal in small or large amountsUnlike trading physical shares, when trading Premium Securities withus, you can trade as little as one share, one index unit and five thousandunits of currencies.Instant execution of tradesWhen trading Premium Securities with Spread Co, your trade will beconfirmed almost immediately you select the buy / sell button (this issubject to the deal or order size being within permitted limits and theinstrument being priced correctly.) You should not have to wait morethan a few seconds for prices to be confirmed, except in unusual marketcircumstances.Flexibility – Ability to Hold an Investment in a Buy or Sell PositionPremium Securities give you the flexibility to buy or sell. If you buy (golong) a Premium Security, you will make profits should the market pricerise and incur losses if market price falls. On the contrary, if you sell (goshort) a Premium Security, you will make profits if the market price fallsand incur losses if market price rises. 86
  30. 30. Limited RiskTrading Premium Security is limited risk trading. Unlike margin trading,where you can lose more than your initial margin, your losses are limitedto the initial Investment Amounts for the relevant investment (asincreased by top ups you elect to make). Once your Investment Amountdrops to zero, your investment will be automatically liquidated. You areprotected by Spread Co who automatically creates a stop loss when youpurchase a Premium Security investment. Access to Huge range of Global MarketsPremium Securities also enable you to trade a range of markets acrossmultiple asset classes from a single account.Extended Trading Hours24 hours between 10pm on Sunday evening (GMT) to 10pm on Fridayevening (GMT), markets are open and available for trading. 86
  31. 31. LeveragePremium Securities are leveraged financial instruments. When you buyor sell Premium Securities, you only need a fraction of the nominalamount - the valuation. If the market moves in your favour, yourvaluation will increase. If the market moves against your favour, yourvaluation will decrease. The maximum amount you can lose is the initialInvestment Amount (as increased by top ups you elect to make). Unlikemargined products, profits are potentially unlimited while losses arelimited.Corporate ActionsLike traditional share trading, you can benefit from corporate actions individend payments. Corporate actions and dividend payments will bereflected as adjustments to the trade price.Cash SettlementPremium Securities are cash settled. When you hold Premium Securities,you will need to place an Investment Amount. When you sell theinvestment, the sales proceeds will be returned to you. You will not berequired to settle the underlying physical asset which may be the case inother markets. 86
  32. 32. No Partial FillsIn the physical markets, there are times which you may not knowwhether there is sufficient liquidity to fill your entire order. WithPremium Securities, you can be sure that your entire order will be filledup to the normal market size shown by Spread Co. Within predefinedquantity limits, Premium Security eliminates partial fills.Premium Securities are new products and are launched as collaborationbetween India infoline Limited and Spread Co. We are the first to launchthis product. Please click here to get more information regardingPremium Securities Competitive pricesWe believe we are one of the most competitive providers in themarketplace for the instruments we offer. See the Fees List for fulldetails of the current charges.New technology with additional features 86
  33. 33. You can customize your trading screen and lay it out how you want tosee it. You can also store numerous layouts for easy access to what youneed to see quickly. Alternatively you can simply use the defaultversions Spread Co will provide you with.TransparencySpread Co provides total transparency on your trading history throughdaily and monthly statements. These will be emailed to you and are alsoalways available through the trading system itself.Premium SecuritiesA purchase of a Premium Security Investment is one where you make afixed investment to gain a leveraged exposure to an underlying financialinstrument at its current market price.The embedded leverage in the Premium Security contract means youhave the potential of making higher returns, or losses, when compared totrading the cash value of the underlying instrument.However, similar to purchasing an option, losses are limited to theamount invested.Unlike option trading the Premium Security has no expiry and you arefree to choose when you want to close the position.Derivative Product 86
  34. 34. Premium Securities are financial derivative trading products. Theirprices are derived from the prices of their underlying financialinstruments. The underlying of a Premium Security is an asset, index, oreven another derivative, such that the cash flows of the derivativedepend on the value of this underlying.When you buy or sell Premium Security, you will not physically own theunderlying instrument. With Premium Security, you are gainingexposure to the direction of the future price movement in an underlyinginstrument. You actually hold a contract with Spread Co to buy or sell aPremium Security paying the Investment Amount and on selling thesame investment, receive the sale proceeds (if any).PricingPremium Securities are priced almost identically to their underlyinginstruments. They are typically quoted on a spot basis. PremiumSecurities prices move in real-time as the price of their underlyinginstruments move on the relevant exchange they are quoted or in theinter-bank market.The SpreadThe spread, also known as the dealing spread or the Buy/Sell spread, isthe difference between the buy and sell rates at which you can buy andsell Premium Securities.Spread sizes vary by instrument depending on: 86
  35. 35. 1. the liquidity of the underlying instrument2. the volatility of the underlying instrument3. the amount of freely traded shares that exist for the relevant underlying instrumentThe size of the spread represents how much the market must move inyour favor before you begin to make a trading profit. For example, ifyou buy 1,000 Google Premium Securities at a $0.05 spread, your tradewill begin at a $50.00 loss.ProfitThe two main ways to profit from investing Premium Securities are to:1. Buy at one price then sell at a higher price2. Sell at one price then buy at a lower priceLossThe two main ways to lose while investing in Premium Securities are to:1. Buy at one price then sell at a lower price2. Sell at one price then buy at a higher price 86
  36. 36. Foreign Exchange Premium SecuritiesTrading FX Premium Securities is the new way to trade a range ofdifferent currency pairs, and all from one online trading account at yourfingertips. Our goal is to make your FX trading experience efficient andenjoyable, and support you in what you are looking to achieve.What is Foreign Exchange Premium SecuritiesThe foreign exchange (FX or Forex) market is where the world tradescurrencies. It is the largest, most heavily traded market in the world,with an estimated daily turnover of US$1.9 trillion. It is a true 24-hourmarket from Sunday 10:00 PM GMT to Friday 10:00PM GMT. Tradingstarts every day in Sydney and then moves round the world as thebusiness day starts in each financial centre; Tokyo, then London, thenNew York.This means that, unlike any other financial market, traders can respondto currency fluctuations caused by economic, social and political eventsat the time they occur, without having to wait until the relevantExchange opens.Spread Co enables you to trade foreign exchange using FX PremiumSecurities which simulate the price performance of an exchange ratewithout the need to physically own the relevant currencies.Currency pairs 86
  37. 37. During an FX Premium Securities trade, you buy one currency whilesimultaneously selling another in order to pay for the first currency.The two currencies which are the subject of a single FX trade arereferred to as a currency pair. For example, USDJPY is a commonlytraded currency pair. USD stands for United States Dollar and JPYstands for Japanese Yen. The most commonly traded (and therefore mostliquid) currencies are known as the “Majors” and this includes the USDollar, Japanese Yen, Euro, British Pound, Swiss Franc, CanadianDollar and Australian Dollar. Each currency is referred to for thepurposes of FX trading by a three-letter code.The first currency in a currency pair is called the base currency. Thesecond currency in a currency pair is called the quote or term currency.The exchange rate quoted for the purposes of FX trading is how much ofthe quote currency you need to sell in order to buy one unit of the basecurrency.Quotation principlesExchange rates are almost always quoted with five significant figures.This means that most currencies are quoted to the ten thousandth of acurrency unit. For example, 1.8525 would be a valid quote forGBPUSD.The smallest possible exchange rate movement is called a pip. Forexample, GBPUSD can increase by 0.0001 from 1.8500 to 1.8501,therefore one pip is equal to 0.0001 for GBPUSD. USDJPY can increase 86
  38. 38. by 0.01 from 115.00 to 115.01 therefore one pip is equal to 0.01 forUSDJPY. If USDJPY goes up by 0.15, you would say, "USDJPY wentup 15 pips".The SpreadThe spread, also known as “the dealing spread” or “the Buy/Sellspread”, is the difference between the prices at which you can buy andsell.The spread is how market makers such as Spread Co are compensatedfor creating a market for you to trade FX. A wide or large spread is moreexpensive to you. A narrow or small spread is cheaper for you.The size of the spread represents how much the market must move inyour favour before you begin to make a trading profit. Your trades willalways begin at a loss calculated by multiplying the trade quantity by thesize of the dealing spread.For example, if you buy 100,000 USDJPY at a JPY 0.03 spread, yourtrade will begin at a JPY 3000 loss. See more examples on the left. 86
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  40. 40. There are different product and services which are provided by Indiainfoline Ltd. They are as follows Products• Equities I Bonds I Mutual Funds I Derivatives• Managed Investment Services / PMS• Commodities • FX Trading • Welth Management • Asset Management 86
  41. 41. • Investment Banking • Insurance • Fixed Diposit • Lones • Gol Bonds • Offshore other small Investments Services8. Creation of a customized financial strategy9. Diversification of assets based on a formal process of asset allocation10. Active tracking, monitoring and review of portfolios11. Creation of private trusts12. Tax planning13. Estate planning14. Structuring of family wealth 4.1 EQUITY SHARES 86
  42. 42. Equity shares are commonly referred to common stock or ordinaryshares. Share capital of a company is divided into a number of smallunits of equal value called shares. But the term stock is the aggregate ofa member’s fully paid up shares of equal merged into one fund. It is a setof shares put together in a bundle. The stock is expressed in terms ofmoney and not as many shares. It can be divided into fractions of anyamount and such fractions may be transferred like shares. The personwho bought those shares is known as share holders. According to section 85 (2) of companies Act 1956, equity share holders have some rights these are • Right to vote at the general body meetings of the company. • Right to control the management of the company. • Right to share in the profits in the form of dividends and bonus shares. • Right to claim on the residual after repayment of all the claims in the case of winding up of the company. • Right to pre-emption in the issue of new capital. • Right to apply to court if there is any discrepancy in the rights set aside. • Right to receive a copy of the statutory report, copies of annual report with audited report. 86
  43. 43. • Right to apply the central government to call an annual meeting when a company fails to call such a meeting.• KEY FEATURES OF EQUITY SHARES• # Capital appreciation• # Limited liability• # Free tradability• # Tax advantages• #Hedge against inflation• COMMODITIES TRADING• Indiainfoline extension into commodities trading reconciles its strategic intent to emerge as a one stop solutions financial intermediary. Its experience in securities broking has empowered it with requisite skills and technologies. The companies commodities business provides a contract- cyclical alternative to equities broking. The company was among the first to offer the facility of commodity trading in India’s commodity market. The commodities market has several products with 86
  44. 44. different and non-correlated cycles. On the whole , the business is fairly insulated against cyclical gyrations in the business.KEY FEATURES • The company provides a complete advice to execution solution facilities by information and advice on likely commodity trends in the India and international environment. • Enjoy membership with the MCX and NCDEX, two leading Indian commodities exchanges. • Provide regular commodity updates pertaining to the Indian and international environment. • Online business at 80% of revenues dominates commodity trading revenue. 86
  45. 45. 4.3 INSURANCE PRODUCTSAn entity into this segment helped complete the client’s product basket, itgraduated the company into a one stop retail financial solutions provider. Toensure maximum number of customer across India , indiainfoline employed amulti pronged approach and reach out to customer via different networkthrough directly or indirectly. Following the opening of the sector, a number ofprivet sector insurance service providers commenced operation aggressivelyand helped grow the market. The companies enters into insurance sector derisked the company from a predominant dependence on broking and equitylinked revenues. The annuity based income generated from insuranceintermediation result in solid core revenues across the tenure of the policy.KEY FEATURES • Indiainfoline provides both life insurance as well as general insurance in the market. • The company is the biggest corporate agency in india for life insurance products. • The company operates multiple channels like branch networking, preferred client group, direct marketing, corporate tax advisory, walk-ins and seminars to reach out to customers. 86
  46. 46. • Forged alliances with major insurance companies for the distribution of life and non-life insurance products. • Altered the product mix in favor of traditional products like endowment products. 4.4 MUTUAL FUND INVESTMENT PRODUCTSIndiainfoline offers you a host of mutual fund choices under one roof , backedby in-depth research and advice from research house and tools configured asinvestor friendly.Buying a mutual fund may be the smarter financial decision of your life. Butwith over 2500 mutual funds to choose from, you can be sure that there are adecent number of sour apples out there. To be safe , take a look at the itemsmentioned on this list before you invest in any mutual fund.Indiainfoline Ltd. Deals with the four most important funds like wise.  Growth fund The aim of growth fund is to provide capital appreciation over the medium to long term. Such schemes normally invest a majority of their corpus in equities. It has been proven that returns from stocks, have out performed most other kind of investments held over the 86
  47. 47. long term. Growth schemes are ideal for investor having a long term view seeking growth over a period of time. Exchange Traded Debt funds The Exchange trade funds are hybrid of open ended mutual funds listed individual stocks on stock exchanges. Basically these are managed funds which are traded in a particular index and there price are determined by demand and supply in the market. In practice these are traded in small range around the assets (NAV) held by them. These are represent a basket of securities that are traded on an exchange. Balanced funds The aim of balance funds is to provide both growth and regular income. Such scheme periodically distribute a part of their earning and invest both in equities and fixed income securities in the proportion indicated in there offer documents. In a rising stock market, the NAV of these schemes may not normally keep pace, or fall equally when the market falls. These are ideal for investors looking for a combination of income and moderate growth. Other funds The other funds are include sectoral funds, tax saving funds, special schemes. 86
  48. 48. • Sectoral funds include those funds which are invested in a specific industry or a various segments. • Tax saving funds offers rebates to the investors under specific provisions of the Indian Income Tax Act 1961. Investment made in Equity Linked Savings Schemes and pension schemes are allowed as deduction u/s 88 of the Income Tax Act. • Special schemes includes Industry specific scheme which invest only in the industries. The investment of these funds is limited to specific industries like InfoTech, FMCG and pharmaceuticals etc.KEY FEATURES OF ONLINE TRADING IN MUTUAL FUND • Registered users can log into their investment online account and specify amount, folio number etc & submit details with Indianifoline Ltd. • Investor will be then taken to banks homepage. One can use his/her net banking user id & password & transfer funds directly using any of these banks. ICICI, HDFC, and UTI banks. • These transaction details then Indiainfoline Ltd. Would download & process the transaction & transfer funds to respective mutual funds. 86
  49. 49. • Online trading in mutual fund is increasing day by day as per investors interest.WHY PEOPLE DO INVESTMENTInvestment is an activity that is engaged in by people who have savingsor in other words, people invest their savings. It is the employment offunds on assets with the aim of earning income or capital appreciation.The investment has two attributes namely time and risk.In the view of an economist, investment is the net addition made to thenation’s capital stock that consists of goods and services that are used inthe production process.Financial investment is the allocation of money to assets that areexpected to yield some gain over period of time.INVESTMENT OBJECTIVESThe main objective of investment are reducing the risk and increase therate of return but there are other subsidiary objectives of investment arelike safety, liquidity and hedge against inflation.ReturnIn simple words return means the time value of the money, because aninvestor always wants a good rate of return and reducing the risk. Thereturn from an investment depends upon the nature of the investment.Risk 86
  50. 50. Risk is inherent in any investment. It may relates to loss of capital, delayin repayment of capital or non payment of interest. If a person invest ingovernment securities or deposit in a bank the deposits are almostriskless but in other segments are more risky. The factor of risk ininvestment depends on the longer maturity period, the lower creditworthiness of the barrowers. Risk and return of an investment arerelated. The higher is the risk, the higher is the return.SafetyThe safety of an investment implies the certainty of return of capitalwithout loss of money or time. Safety is another feature which aninvestor desires for his investments. Every investor wants to get back hiscapital on maturity without loss and without delay.LiquidityThe liquidity depends upon the marketing and trading facility. If aportion of the investment could be converted into cash without muchloss of time. It helps the investor in case of emergencies.Hedge against inflationWe saw there is inflation in almost all the economy, the rate of returnshould ensure a cover against the inflation. The return rate should behigher than the rate of inflation; otherwise the investor will have a los inreal time.Investment Avenues 86
  51. 51. There are a large number of investment instruments availabletoday. To make our lives easier we would classify or group theinvestment avenues. We shall name and briefly describe them.1. Financial securities / corporate securities: These investmentinstruments are freely tradable and negotiable. These would includeequity shares, preference shares, convertible debentures, non-convertibledebentures, public sector bonds, savings certificates, gilt-edgedsecurities and money market securities.2. Non-securitized financial securities: These investment instrumentsare not tradable, transferable nor negotiable. And would include bankdeposits, post office deposits, company fixed deposits, provident fundschemes, national savings schemes and life insurance.3. Mutual fund schemes: If an investor does not directly want to investin the markets, he/she could buy units/shares in a mutual fund scheme.These schemes are mainly growth (or equity) oriented, income (or debt)oriented or balanced (i.e. both growth and debt) schemes.4. Real assets: Real assets are physical investments, which wouldinclude real estate, gold & silver, precious stones, rare coins & stampsand art objects. 86
  52. 52. 5. Life insurance policies: The Life Insurance Corporation (LIC) offersthe investor for investment. This scheme has the additional facility oflife insurance cover. Some of the scheme of LIC is Whole life policies,Endowment policy, Money Back Plan, Jeeven Dhara etc.6. Provident fund schemes: provident fund schemes are compulsorydeposit schemes applicable to employees in the public and privet sectors.There are three types of provident fund known as statutory providentfund, recognized provident fund and unrecognized provident fund.Before choosing the avenue for investment the investor would probablywant to evaluate and compare them. This would also help him increating a well diversified portfolio, which is both maintainable andmanageable. 86
  53. 53. Internet Trading - Shares & CommoditiesIndiainfoline Limited Securities Ltd is today the ‘Preferred’-tradingpartner for customers across the country. The unique 3-in-1 integratedaccounts are backed by state-of-the-art technology that provides you a 86
  54. 54. blend of safety, transparency and convenience, which is unparalleled inthe industry.Salient features of indiainfoline Limited Trading Account: One of the most technologically advanced trading platform World class research Facility to trade through toll free no. (1800-228-800) in addition tothe Internet. Instant limits on shares sold. Use the proceeds of shares to buyfurther shares instantly. 100% Inter-settlement trade at no extra cost. Low and Competitive Brokerage: 0.50% of the transaction value fordelivery transactions and 0.05% on each side of the transaction forsquare off trades and derivatives. PRODUCTS:The services provided by IIFL Ltd are as follows: 86
  55. 55.  Cash & carry on NSE & BSE. Derivatives (F&O) on NSE. Initial Public Offers (IPO’s) NCDEX – Commodities TradingTerm “Cash & Carry” impliesOne needs to have 100% balance in his / her Trading Account beforeplacing a Buy order or against ones sell position; Buying Limit isimmediately generated to his / her account, which can be utilized forfuture purchases.Similarly one is allowed to Sell stocks either he/she has to have balancein Demat a/c or need tohave sufficient balance to sell the stock. Online IPO:Conveniently subscribe to the latest IPO’s directly through yourtrading account. ACCOUNT OPENING REQUIREMENTS:For opening a Trading Account through IIFL Limited one either needsto have a Saving 86
  56. 56. Account with HDFC/UTI/ICICI Bank & Demat Account withINDIAINFOLINE Limited . his / her existing HDFC/ UTI/ICICI BankSavings Account with Trading Account or else, we would assist inopening a 3 - in - 1 Account.Please note that as per SEBI vide Circular dated 26th-August-2004, hasspecified Uniform Documentary Requirements, for clients intending toopen a trading with any SEBI Registered Broker. As per the saidGuideline, we would require following documentation: Identity Proof: (Self Attested)Pan CopyPassport CopyDriving LicenseVoter ID Address Proof: (Self Attested)PassportDriving LicenseVoter IDRation Card 86
  57. 57. Bank Passbook/Statement (Attested by banker)Rental Agreement/leaseAgreement(PAN card, as an Identity Proof is mandatory for opening a Tradingaccount. )AOC: Account Opening Charges2 cheque’s favoring –Indiainfoline Ltd.Rs 750/- Account opening fees.Rs. 10,000/- Margin amount for trading. MODES OF TRADING:Indiainfoline Ltd Trading Account offers all its clients the convenienceof operating Trading Accountboth either through the Internet via "Web-Trading Model" or over theTelephone Toll Free no. BROKERAGE: 86
  58. 58. Please be informed that for every transaction carried out by the client,indiainfoline Limited Securities Ltd wouldlevy Brokerage, Service tax, Securities Transaction tax & Stamp Dutycharges: Cash & Carry: Delivery Based:Brokerage is 0.50% of the Transaction Value, subject to minimum Rs10.00 perOrder, which is applicable on both Buying & Selling plus Service Tax,STT & Stamp duty charges at applicable rates.Brokerage is Rs 0.05 per shares, subject to Rs 10.00 per Leg (applicableon both Buy as well as Sell Order), whichever is higher plus ServiceTax, STT & Stamp duty charges at applicable rates. Square Off Trade: 86
  59. 59. Brokerage is 0.10% of the Transaction Value, subject to a minimum ofRs 10.00 per Order, which is applicable on both Buying & Selling plusService Tax & STT at applicable rates. Derivatives Trading:Futures Market:Brokerage is 0.05% of the Transaction Value, subject to a minimum ofRs 10.00 per Order, which isapplicable on both Buying & Selling plus Service Tax, STT & Stampduty charges at applicable rates.Transaction Value is calculated as "Futures Price x Lot Size".Options Market:Brokerage is higher of 1% of the Premium Amount, subject to aminimum of Rs.100.00 on each lot,which is applicable on both Buying & Selling plus Service Tax & STTat applicable rates. Service Tax:Service Tax will be levied @12.36 %of the BrokerageValue . 86
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  62. 62. 4.1: comparison of INDIAINFOLINE with other competitors4.1 comparison of INDIAINFOLINE with other competitorsPARTICULARS INFOLINE ANAND ICICI SHARE A RATHI DIRECT KHANINITIAL 750 555 975 750CHARGES (INRS)INITIAL 10000 20000 15000 12000MARGIN (INRS)AMC (IN RS) 500 (after Nil 500( afte 300(after 1 1 yr) r 1 yr) yr)BROKERAGE .05% .05% .075% .10%(IN RS) .10% .50% .75% .50%comments # ICICI DIRECT charges more in initial charges Rs 975 of Account opening charges. 86
  63. 63. # INFOLINE, SHARE KHAN and ICICI DIRECT charged more in initial margin of Rs 10000. # INFOLINE and ICICI DIRECT charged Rs 500 after 1 year where as SHARE KHAN charges Rs 300. # INDIAINFOLINE charges less brokerage i.e. .05 in case of intra day and .10 in case of delivery, than others. 4.2 RESULTS ON THE BASIS OF BROKERAGE CHARGES There are two types of transactions , such as:- 4.2.1 INTRA DAY BASED. 4.2.2 DELIVERY BASED. Fig 4.1 show results on the basis of brokerage on investments. 0 ANAND RATHI INDIA ICICI DIRECT SHARE KHAN INFOLINE 86
  64. 64. Comments:- INDIAINFOLINE charges less amount of brokerage in case of both intra day and delivery trading. According to the survey ICICI DIRECT charges more brokerage in case of delivery trade than Others. Incase of intra day SHARE KHAN charges less brokerages than others.4.3 RESULTS ON THE BASIS OF ACCOUNT OPENINGCHARGES @ INDIAINFOLINE Account opening charges is Rs 750 only. After 1yera it charges Rs 500 p.a. as Annual Maintenance Charges (AMC). @ ICICI DIRECT. A one time charge of Rs 750 at the time of account opening will be charged. A customer can later upgrade his account to an ICICI share trading account when he desire to trade in equity. @ ANANDA RATHI There is a nominal charge of Rs 500 only for stamp duty, legal and processing fees for opening the account. This includes the registration and account opening charges . The Bank and 86
  65. 65. Depositary Participant (DP) account opening charges are payable separately. @ SHAREKHAN There is no account opening charges but require margin money of Rs 5000 for trading purpose .4.4 RESULTS ON THE BASIS OF BROKERAGE@ ICICI Direct charges 0.075 paisa in a Rupee in case of intra day and0.75 paisa in a Rupee in case of delivery trade.@ share khan charges 0.05 paisa in a Rupee in intra day trade and 0.50in a Rupee in case of delivery trade.@ INDIAINFOLINE charges 0.05 In a Rupee in case of intra day tradeand 0.10 in a Rupee in case of delivery trade.@ Anada rathi chargesbrokerage 0.05 in a Rupee in case of intra day and 0.50in a Rupee incase of delivery trade.4.5 RESULTS ON THE BASIS OF FACILITIESTable 4.2 shows the results on the basis of facilities provided bybroking firms.Basis of INDIAINFOLIN ICICI Share khan Anada rathifacilities E Direct 86
  66. 66. Share Yes Yes yes YestradingCommodity Yes Yes Yes YestradingD- mat Yes Yes Yes yesopeningrights4.6 ROLE OF STOCK BROKERA Stock broker is a professional who buys and sells stocks and othersecurities in the stock market through the book makers from the stockinvestors. As per the law in United States one needs to pass the GeneralSecurities Representative Examination for working as a stock broker.Brokers provide different types of services to the clients.4.6.1 Execution only 86
  67. 67. In this service the broker only carries out the trading according to thedirection of the investor. This is the basic and the most commonly usedservice of the brokers.4.6.2 Advisory DealingIn this service the broker not only performs the buying and sellinginstruction of the client but also advises the investor about which stockto buy and which stock to sell.4.6.3 Discretionary DealingThis is the most comprehensive service that a broker provides. In thiscase the broker has the discretionary power to take the investmentdecisions on behalf of the investor.These are the basic services provided by the stock market brokers and itcompletely depends on you which service you will subscribe. 86
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  69. 69. DATA ANALYSIS & INTERPRETATIONTo get the findings of any study, the collected data has to be analyzed ,if the raw data is to bring in a meaningful form. The interpretationinvolves drawing conclusion from the analysis data.Analysis of primary data:-1) Do you know about investment options available?Table 5.1 shows investment knowledgeKNOWLEDGE PERCENTAG POPULATION E (%)YES 80% 32NO 20% 8TOTAL 100% 40Figure 5.1 86
  70. 70. COMMENTS:- Only 80% people i.e.32 knows the exact meaning ofinvestment. Because of remaining 20% i.e. 8 take his/her residentialproperty as an investment.2) Most preferable investment option.Table 5.2 shows investment scenarioINVESTMENT PERCENTAGE (%) POPULATIONSCENARIOBANKS 26% 11DERIVATIVES AND 30 % 12SECURITIESMARKETINSURANCE 24% 9BONDS 20% 8 BANKS DERIVATIVES INSURANCE BONDS 20% 26% 24% 30% 86
  71. 71. Figure 5.2COMMENTToday scenario is changed so that most area covered by the derivativesand securities market. It is 30% of the total population i.e.12 , then banks26% i.e. 11, insurance 24% i.e. 9 and after that bonds 20%i.e. 8 personfrom the total population3) what is the basic purpose of your investment?Table 5.3 shows investment purpose.INVESTMENT PERCENTAGES (%) POPULATIONPURPOSELIQUIDITY 30% 12RETURNS 25% 10CAPITAL 10% 4APPRICIATIONTAX BENEFITS 20% 8RISK COVERING 10% 4OTHERS 5% 2TOTAL 100% 40 86
  72. 72. Fig 5.3COMMENT75% people i.e.30 are interested in liquidity, return and tax benefits.And remaining 25% i.e.10 people are interested in capitalappreciation ,risk and other factors.4) Most important things you take into your mind while makinginvestments?Table 5.4 shows investment factors.FACTORS PERCENTAGE (%) POPULATIONRISK 8% 3RETURN 17% 7BOTH 75% 30TOTAL 100% 40 86
  73. 73. Fig 5.4COMMENT75% people i.e. 30 are considered the both factors risk as well asreturn , but 25% i.e. 10 people considered the risk or return factor.5) Awareness related to security markets.Table 5.5 shows knowledge about markets.KNOWLEDGE PERCENTAGE(%) POPULATIONCOMPLETE 15% 6PARTIAL 75% 30NIL 10% 4TOTAL 100% 40 86
  74. 74. Fig5.5COMMENTOn the basis of research , it is concluded that 10% people i.e.4 are knownothing about the securities. 75% i.e.30 people are partially aware aboutsecurities and investment. So, some promotional activities are requiredfor increasing the awareness about security market.5) Specify the reason of satisfaction with the current broking house.Table 5.6 shows satisfaction of broking house.SATISFACTION PERCENTAGE(%) POPULATIONOPERATING 18% 7EXPENSESSERVICES 25% 10BROKERAGE 57% 23TOTAL 100% 40 86
  75. 75. Fig 5.6COMMENTOn the basis of research , I conclude that 57% i.e. 23 people know aboutthe brokerage system of the broking firms and 25% i.e.10 people knowabout the service provided by broking firms.7) Are you satisfied with your broking firm ?Table 5.7shows satisfaction with present broking firm.SATISFACTION PERCENTAGE(%) POPULATIONYES 80% 32NO 20% 8TOTAL 100% 40 86
  76. 76. Fig 5.7COMMENTOn the basis of my research , here 80% i.e. 32 people are satisfied withtheir broking house and only 20% i.e.8 people are not satisfied.8) Specify the consumer satisfaction towards best financial servicesprovided by which broking house?Table 5.8 shows customer satisfaction for financial services provided bybroking firms.SATISFACTION PERCENTAGE(%) POPULATIONTOWARDSANADA RATHI 10% 26ICICI DIRECT 15% 6INDIA INFOLINE 65% 4 86
  77. 77. SHARE KHAN 10% 4TOTAL 100% 40fig5.8COMMENT On the basis of research, 65% i.e.26 people are satisfiedwith anada rathi, 15% i.e. 6 people are satisfied with ICICI direct and10% i.e. 4 people are satisfied with both Anada rarthi and share khan .9) In which method do you trade?Table 5.9 shows the method of trading in stock market.METHODS PERCENTAGE POPULATION (%)ONLINE 30% 12OFFLINE 70% 28TOTAL 100% 40 86
  78. 78. ONLINE OFFLINEfig 5.9COMMENTSAccording to the survey there are 70% people who are doing trade in offline basis and 30% people do trade in online basis.10) Why do people prefer stock market?Table 5.10 shows the performance of stock market.PREFERENCE PERCENTAGE (%) POPULATIONFor earning of short 17% 7term profitFor earning of long 50% 20term profitRisk reduction 8% 3Hedging purpose 25% 10TOTAL 100% 40 86
  79. 79. fig 5.10COMMENTAccording to my research , 50% people i.e. 20 are invest their money forgetting long term profit , 25% people i.e. 10 people are invest money forhedging purpose,17% people i.e7 are interested in short term profit andless 8% people i.e. 3 are invest money for risk reduction. 86
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  81. 81. MAJOR SUMMARY6.1 FINDINGSe option which is always preferable when the market is volatile. Afterthe process of tabulation and data analysis the research had explored thefollowing findings like@ According to the survey most of the customer of indiainfoline saysthat , it is pocket friendly which is provided less investment charges thanothers.@ Coming to faith 65% says that indiainfoline is better than other stockbrokers due to customer satisfaction because it provide the maximuminvestment facilities and options to the investor.@ Lack of promotional activities undertaken by indiainfoline inBBSR.@ The main purpose of investments are liquidity and returns.@ Investor take risk as well as get return on their investment.@ Businessmen are more interested in stock market than the others interms of risks and returns.@ commodity market is less preferred by the investor because of lessawareness about commodity market. 86
  82. 82. @ People want to invest their money in security market but they haveno sufficient knowledge about investment procedure.@ People pay more emphasis on brokerage than service provided bybrokerage house.@ People are not aware of hedging in stock market.6.2 SUGGESTIONS@ There should be equal commitment for every person.@ There should be some promotional activity required for awarenessof the customer.@ Provide the facility of free demonstration for all.@ There should be a limited number of clients under the relationshipmanager . so that they can handle new as well as old customer properly.@ Improvement in the opening of De-mat account and contract noticeprocedure is required.@ young age people should encouraged to invest in stock market.6.3 CONCLUSIONS@ On the basis of study it is found that indianifoline is provide betterservice than other stock brokers because of their timely research andpersonalized advice on what stocks to buy and sell, when to buy andwhen to sell. 86
  83. 83. @ indiainfoline provides the facility to trade as well as the relationshipmanager facilitate to encourage and protect the interest of the customeror the investors. It also provides the information through the internetand mobile alerts that what IPO’s are coming in the market and it alsoprovides its research on the future prospect of the IPO.@ It is also found that people are not aware about commodity market ,Hedging etc. so there should be a creation of awareness of share marketand its instruments, how it takes place, when to invest or not etc.@ The company should come up with innovative ways of service attheir door steps this may be a costly affair but will surely give positiveresults in the long run as the banks and insurance companies done.@ The company should take the initiative of training the advisors aboutthe new funds from time to time which also makes the advisorsconnected to the company.@ The company should give emphasis on creating an awareness aboutthe market knowledg@ The company should focus on the advertising strategy and also themarketing of the product. 86
  85. 85. QUESTIONARY 1. Personal details Name--------------------------------------------------------Address-----------------------------------------------------------------------------------------------------------------------------------------------------------------------Phone no (res) -------------------------------------, -----------------------Mob-------------------2. Age of the candidates20-30, 30-40, 40-50, 50-603. Your Annual income a) 50000-1,00000 b) 1,00000-1,50000 c) 2,00000-2,50000 d) 5,00000 above4) Do you know about investment options available? a) Yes b) No 5) Do you know about the different types of investment alternatives? a) Insurance &mutual funds b) Banks c) Real estate d) Share market 86
  86. 86. e) Commodity f) Others6) What is the basic purpose of your investment? a) Liquidity b) Return c) Capital appreciation d) Risk covering e) Tax benefits7) What are the most important things you take into account, while making any investment? a) Risk b) Return c) Both8) Do you have any knowledge about share markets? a) Complete b) Partial c) Nil9) Do you know about 3-in-one Account? a) Yes b) No10) Do you have D-mat & Trading account? If yes, in which brokingfirm? a) Indiainfoline LTD. b) HDFC securities c) Share khan d) ICICI direct 86
  87. 87. e) Karvy e) others 11) By which way you like to invest? a) Online b) Off line 12) What type of trading you do? a)Delivery b)Intra-day c) Future option 13) Are you satisfied with your present broking company? a) Yes b) No 14) What is the reason? a) Services b) Brokerage c) Operating expenses d) Others15) Specify the consumer satisfaction towards best financial services provided by which broking house? a)Indiainfoline b) ICICI Direct c) HDFC securities d) Anand Rathi securities ltd 86
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