WEALTH MANAGEMENT IN INDIAWITH SPECIAL FOCUS ONONLINE TRADING”Presented by:-RanaratnakarMBA 3rdsem
COMPANY PROFILE M SOLUTIONS OM SAI ASOCIATES KANNLITE MANAGEMENT SERVICES
ABOUT M SOLUTIONS India first truly client oriented company 110 channel partners across in India Revenues over 50 crores Market capitalization of over 150 crores Over 50% of revenues flow from our brokingdivision Over 300 employees belonging to over 25different nationalities 7 stakeholders The best employer in india and among the top20 in india economic times survey
INTRODUCTION OF WEALTH MANAGEMET“Wealth management as a concept originated in theyear 1990’s In u.s.”“Essentialy, it is a investment advisory concerningfinancial planning that provides individual with privatebanking, asset management , taxtation advisory,portfolio management.Among the above services,portfolio management is genric and the rest arehighly custmize.”“A professional service which is the combination offinancial/investment advice, accounting/tax services,and legal/estate planning for one fee.”
HELPING TO MAKE WORK OPTIONALMaking money is difficult. Keeping it iseven harder. Effective management ofyour savings is the most importantelement of the wealth managementprocess. It is the foundation upon whichall our other services are based.
WEALTH MANAGEMENT SERVICE OBJECTIVES“your success is our success. Our purposeis to create a financial solution that willbenefit you and your family, according toyour individual goals and aspirations.”Our objectives are to:
A) ORGANIZE AND SIMPLIFY YOUR FINANCIAL LIFEB) PROVIDE YOU WITH EXCEPTIONAL INVESTMENTMANAGEMENTC) DEVISE A PLAN TO GUIDE YOU THROUGH THE NEXT FIVE TO10 YEARSD) HELP YOU BUILD WEALTH THAT IS INDEPENDENT OF YOURBUSINESS INCOME
E) PROVIDE THE GUIDANCE THAT ALLOWS YOU TO STICK TO THELONG-TERM STRATEGYF) HELP YOU AVOID COSTLY MISTAKESG) HELP YOU GAIN FINANCIAL PEACE OF MINDH) FINANCIALLY EMPOWER YOU TO PURSUE YOUR MOSTIMPORTANT LIFE GOALS AND SPEND MORE TIME DOING WHATYOU LOVE .
RESEARCH METHODOLOGY:“AN EXPLORATORY RESEARCH HAS BEEN CARRIED OUT TO STUDY THEBEHAVIOR OF CUSTOMERS. TO MEET THE RESEARCH OBJECTIVE A RESEARCHFORMATS, TO COLLECT INFORMATION FROM THE RESPONDENTS WAS MADE& THE INFORMATION WAS COLLECTED THROUGH INDIVIDUAL INTERACTIONWITH THE CLIENT. THE DATA WAS COLLECTED USING SCIENTIFIC METHOD ASPER THE QUESTIONNAIRE SAMPLE ELEMENTS HAVE BEEN CHOSEN BYOBSERVATION TECHNIQUES.”
RESEARCH DESIGNRESEARCH WAS CONDUCTED TO KNOW THE SCOPE OF ON LINE TRADING, SOIT WAS DESIGNED AS ANALYTICAL.1) SAMPLE DESIGN: DATA FOR THIS STUDY HAS BEEN COLLECTED FROMPRIMARY SOURCES. FOR THE COLLECTION OF DATA CONVENIENCE SAMPLINGHAS BEEN USED.2) SAMPLE SIZE: SAMPLE SIZE FOR THE STUDY WAS 100 FOR THE UNIVERSEOF THE URBAN AREA, DEHRADUN.PRIMARY DATA: PRIMARY DATA WAS COLLECTED WITH THE HELP OF:1) QUESTIONNAIRE2) PERSONAL INTERVIEWS
INDIAN STOCK MARKET OVERVIEWThe Bombay stock exchanges (BSE) and the NationalStock Exchange of India Ltd (NSE) are the two primaryexchange in India. In addition, the BSE and NSE haveestablished themselves as the two leading exchanges.
BOMBAY STOCK EXCHANGE (BSE)> The Bombay Stock Exchange is the oldest exchange in Asia. Ittraces its history to the 1850s, when four Gujarati and one Parsistockbroker would gather under banyan trees in front of MumbaisTown Hall.> The location of these meetings changed many times, as the numberof brokers constantly increased. The group eventually moved toDalal Street in 1874 and in 1875 became an official organizationknown as The Native Share & Stock Brokers Association. In 1956,the BSE became the first stock exchange to be recognized bythe Indian Government under the Securities Contracts RegulationAct.> The Bombay Stock Exchange developed the BSE SENSEX in 1986,giving the BSE a means to measure overall performance of theexchange.
NATIONAL STOCK EXCHANGE (NSE)The National Stock Exchange of India was set up by Governmentof India on the recommendation of Pherwani Committee in1991.Promoted by leading Financial institutions essentially ledby IDBI at the behest of the Government of India, it wasincorporated in November 1992 as a tax-paying company. In April1993, it was recognized as a stock exchange under the [[SecuritiesContracts (Regulation) Act], 1956.
NIFTYNIFTY is an Index computed from performance of top stocks fromdifferent sectors listed on NSE (National stock exchange). NIFTYconsists of 50 companies from 24 different sectors. NIFTY standsfor National Stock Exchange’s Fifty. The companies which formindex of NIFTY may vary from time to time based onmany factors considered by NSE. NIFTY is for NSEsimilarly SENSEX is for BSE
HOW M-SOLL DEALS WITH EQUITY TRADING AND THE SERVICES PROVIDEDTO THE CUSTOMERS?M-soll Provides best services to its customers for equity trading incomparison to other Financial Securities Companies.These services are as follows-Online trading facilities with Express trade terminal.Express trade terminal is wave based software. Client can easilydownload the terminal through M-soll web site. No extra chargesare taken for the use of this terminal. Through thisterminal/software you execute your order within 2 seconds. In thisterminal we get both NSE&BSE On-line at same time. And theclients can do trading in both NSE&BSE at the same time.
INDIVIDUAL CLIENT:Demat A/c opening charges: Rs 500/- (maintenance Charges Rs250/-)Trading A/c free for life timeTrading through offline or website. (www.M-soll.com)NSE & BSE both are online.Live applet for watching prices & trading purposes.
5PAISA.COMCompany Background India infoline was founded in 1995 and was positioned as a researchfirm. In 2000 e-broking was started under the brand name of 5paisa.com. Apart from offering online trading in stock market thecompany offers mutual funds online. It also acts as a distributor of various financial services i.e. CompanyFixed Deposits, Insurance.Online Account Types Investor Terminal : Investors / Students Trader Terminal : Day Traders
Kotak securitiesCompany Background A Kotak security is the retail arm of Kotak securities. Kotak Securitieslimited is a joint venture between Kotak Mahindra Bank and GoldmanSachsOnline Account Types•Free Way: Flat Rs 999 Cover Charge p.m, 0.03% per transaction•Cash Expressway: Spot payment, additional 0.5% charges
INDIABULLSCompany BackgroundIndiaBulls is a retail financial services company present in 70 locationscovering 62 cities. It offers a full range of financial services andProducts ranging from Equities to Insurance. 450 + RelationshipManagers who act as personal financial advisorsOnline Account Type•Signature Account: Plain Vanilla Account with focus on Equity Analysis. Theequity analysis is a paid service even for A/c holders.
ICICI DIRECT.COMCompany BackgroundICICI Web Trade Limited (IWTL) maintains ICICIdirect.com. IWTL is anAffiliate of ICICI Bank Limited and the Website is owned by ICICI BankLimitedAccount Types•ICICI Direct e-invest Account: Plain Vanilla Account with focus on 2 in 1advantage. Differentiated in services within the account.1. Cash on spot2. Margin Plus
HDFC SecuritiesCompany BackgroundHDFC Securities Ltd, is promoted by the HDFC Bank, HDFC andChase Capital Partners and their associates. Pioneers in setting up Dial-a-share services with the largest team of Tele-brokers.Online Account TypeHDFC Online Trading A/c : Plain Vanilla Account with focus on 3 in 1advantage
FINDINGS OF COMPETITIVE ANALYSIS M-soll has the unique product in the market related to the expectationsdesired by the customers. The company is innovative and uses the latest technology to improvethe product to fulfill the demands of the customers M-soll strategy is to satisfy the customer in terms of their need byproviding them timely services and knowledge about the trade inequities, mutual funds by giving tips for investment advises Brokerage charged by the company is less and competitively betteraccording to the services provided to the customers
LIMITATIONS OF COMPETITIVE ANALYSIS1) Services of competitors:2) No proper assurance of right information:3) Lack of awareness of Stock market:4) Mostly people comfortable with traditional brokers5) Inaccurate Leads:6) Misleading concepts
MARKET DATA RESEARCH ANALYSIS1. Tick the age category to which you belong?Age Percentage No. of respondent20-29 10% 1030-39 15% 1540-49 50% 5050-59 10% 10Above 60 15%% 15
DATA INTERPRETATION :-As the graph shows that most of the respondents belong upto the agegroup of 40-49 with 50% of the total share whereas other respondenstsbelonging to the other age groups constitue of merely 20%.
2. PLEASE TICK THE GENDER TO WHICH YOU BELONG?(A)Male 82 (B) Female 18Male, 82Female, 18MaleFemale
DATA INTERPRETATION:-As the graph shows that most of the respondents belong tothe male category i.e. 82% male ; 18% female.
3. TICK THE OCCUPATION TO WHICH YOU BELONG ?Occupation Percentage No. of RespondentServiceman 70% 70Business 20% 20Professional 2% 2Student 5% 5Housewife 3% 3Others 0 0
DATA INTERPRETATION:-The table and graph indicates that most of respondents are servicemanconstituing 70% share whereas business people and students are nextin the cadre with low percentage such as 20% and 5% respectively,which means that regular income holder are more prone towards fasterand easy trading.
4. PLEASE TICK YOUR MONTHLY INCOME ?Monthly Income Percentage No. of RespondentUp to 10000 2% 210000-15000 5%515000-20000 13% 1320000-25000 20% 20Above 25000 60% 60
DATA INTERPRETATION:-In this graph we can see that most of the people belong to incomecategory of above 25000 with 60% share where as the lowestpercantage (2%) of people belong to the income group upto 10000.
5. PLEASE TICK WHERE DO YOU INVEST ?Area of Invest Percentage No. of RespodentFixed Deposit withbanks 23%23Mutual Funds 7% 7Stocks 50% 50Insurance 8% 8Real State 8% 8Govt. Bonds 4% 4Fixed Depositwith banks35%Mutual Funds7%Stocks27%Insurance8%Real State18%Govt. Bonds5%
DATA INTERPRETATIONAbove chart shows that most of the people are interested toinvest their money in fixed deposits due to low risk andwhereas very few people are interested in Govt. Bonds dueto its low rate of return
6. PLEASE RANK THE FACTORS THAT INFLUENCES YOURDECISIONS TO OPEN A DMAT ACCOUNT ?Factor influencing foropening DMAT A/c PercentageNo. of RespodentProximity to TradingFirm 12%6Facility Provided by thetrading firm 48%24Relationship withmanager 14%7Advertisement 6% 3Recommendation byfriend 10%5Brand Name 8% 4Branch Timing 2% 1
Data Interpretation:-With the help of this graph we came to understand that facilityprovided by the trading firm is the very crucial aspect whichinfluences the customer’s attitude towards opening DEMAT A/Cwith the highest percentage constituting almost 48% share. Inspite of this we can observe that relationship with manager getIInd higher priority factor which influence opening of DMAT A/Cis 14%.
LEARNINGS I learned to apply a lot of theoretical knowledge into practical use. As my work included the sales, I learnt some of the ground rules ofselling my product. I also learnt to handle the month end stress when it is time to completethe targets. I also came to know the various work culture rules and ethics that arerequired to be followed in the organization. I also found that it is very important to build a relationship with a client asit brings more business
CONCLUSIONWealth managementWealth managers are beginning to investigate innovative segmentationmethods to manage the changing client profile. Over the next 20 yearswealth managers will done their segmentation methods.“A professional service which is the combination offinancial/investment advice, accounting/tax services, andlegal/estate planning .”Online tradingIn spite of these optimistic numbers, online trading in India is at a verynascent stage (about 2 percent of total traded volumes) compared tocountries like South Korea (60 percent), US (40 percent) and UK (20percent).