1 | P a g eSheela Devi Institute ofManagement & TechnologyASummer Internship Project ReportonComparative Analysis of services provided by AngelBroking Ltd. and other Broking Houses in Pune.(With special reference to Angel Broking Limited, Pune.)Submitted by:ANKIT ROHILLABatch 2009-11Branch Head Faculty GuideAngel Broking Ltd., Satara Road Pune ( )
2 | P a g eCERTIFICATEThis is to certify that the project titled “study on Share Trading inAngel Broking .” Is a bonafied work carried out by Mr. ANKITROHILLA in partial fulfillment of the requirement for the awardof the degree of Master of Business Administration from SDIMT,M.D University under the guidance and direction.Internal Guide:
3 | P a g eAcknowledgementIt is almost inevitable to incur indebtedness to all who generously helped bysharing their invaluable time and rich experience with me, without which thisproject would have never been accomplished.No task can be achieved alone, particularly while attempting to finish aproject of such magnitude. It took many very special people to facilitate it andsupport it. Hence, I would like to acknowledge all of their valuable support andconvey my humble gratitude to them.First of all I thank the Indian marketers and advertisers who have withoutfail produced, Surrogate Ads which we so often debate about. At least they gaveme a topic to work on and even realize the issue of surrogate ads which I did notnotice till now.I would like to acknowledge my sincere gratitude to Mr.rajnish bangia(Branch Manager, Angel Broking Ltd. faridabad Branch) for sharing his valuableideas, constructive criticism and motivation, which were the guiding, light duringthe entire tenure of this work.Thank you all for supporting me in making this projects a reality.Ankit Rohilla
4 | P a g eDECLARATIONI, ANKIT ROHILLA do hereby declare that the project reporttitled “study on Share Trading in Angel Broking” is a genuineresearch work undertaken by me and it has not been publishedanywhere earlier.Date:Place:ANKIT ROHILLA
5 | P a g ePrefaceShare trading in India is undergoing a transition and consolidation phasewitnessed never before. The competition is likely to become so severe after theentry of many players, retaining a customer is most difficult practice for anyservice provider.Though India has a very big untapped market but the players will not flourishunless they change the way the customers are being served. Given the awarenesslevel of today customers every player has to treat with care and make thecustomer feel that he is the king. Number of Online Share trader in India hascrossed the line. More and more customers are coming under this umbrella andmany of the existing one are changing pavilion. So customer retention andsatisfaction is now more important as it was never before. Players keep comingwith new schemes in order to attract new customers and retain the existing one.This is being supplemented with increased advertising and brand building efforts.Success of any organization depends upon its being proactive. An often quotedmarketing adage is to manage a business well is to manage its future and tomanage its future is to manage information.”To give the student of management a feel of real world situation they arebeing sent to any organization where they work on a prescribed problem or atopic and come out with various conclusions and suggestions.
6 | P a g eI am very lucky as I got an opportunity to work with “angel broking” LTD.which is showing phenomenal growth and success in its Sector.My topic of study was “Studying the working process ofangel broking LTD.”This project is an effort to do a depth study and analysis of various knownand unknown reasons for customer satisfaction and retention. “To err is human”and I am not an exception, valuable comments are always welcomed since it willmotivate to work with greater zeal and efficiency in the future.
7 | P a g eExecutive SummaryThe summer internship at “Angel Broking” undertaken by us has given us an exposure intothe investment scenario in India. The project that we were involved with while working at“Angel Broking” includes advisory services i.e. educating the existing and potential investorsabout stock market as an alternative source to investment. This involves catering to the queriesof the investors about the concept of stock market, the various options that an investor caninvest his money into, funds management of investors.Analyzing the investors‘ behavior includes understanding the concerns a person hastowards Stock Market, his stages in life and wealth cycle, the effect of the investments madeby the peer groups, effect of the profession he/she is in, education qualification, importance oftax benefits, the most preferred saving tool etc. and this all is analyzed with the help of aschedule prepared.Through the systematic investment plan invest a specific amount for a continuous period,at regular intervals. By doing this, the investor get the advantage of rupee cost averagingwhich means that by investing the same amount at regular intervals, the average cost per unitremains lower than the average market price.
8 | P a g eCONTENTSS.NO. TOPIC NAME PAGE NO.1. INDUSTRY OVDERVIEW : A Brief History of stock exchange Online Trading process.7792. COMPANY PROFILE : Introduction and history Introduction to Angel Broking About the Angel Broking Management team Milestones Angel Logo’s Organizational Structure Products of Angel Broking Investment Advisory Services Commodity Department Study Brokerage Other features SW0T Analysis Procedure of client acquisition11111212141415191921212334373839
9 | P a g e3. COMPETITOR’S ANALYSIS : ICICI Direct.com Indiabulls.com Competitor’s Comparison444449534. RESEARCH METHODOLOGY : Objectives of study Research methodology Data sources Significance of the study Managerial usefulness of the study Limitations of the project Scope of the study56565657575859605. FINDING, CONCLUSION ANDRECOMMENDATION : Conclusion Recommendation Finding616264646. BIBLIOGRAPHY 79
10 | P a g eCHAPTER -1INDUSTRY OVERVIEWA BRIEF HISTORY OF STOCK EXCHANGES :-Do you know that the worlds foremost marketplace ―New York Stock Exchange‖ (NYSE), started itstrading under a tree (now known as 68 Wall Street) over200 years ago? Similarly, Indias premier stock exchangeBombay Stock Exchange (BSE) can also trace back itsorigin to as far as 125 years when it started as a voluntarynon-profit making association.You hear about it any time it reaches a new high ora new low, and you also hear about it daily in statementslike The BSE Sensitive Index rose 5% today. Obviously,stocks and stock markets are important. Stocks of public limited companies are bought andsold at a stock exchange. But what really are stock exchanges? Known also as News on thestock market appears in different media every day. The stock market or bourse, a stockexchange is an organized market place for securities (like stocks, bonds, options) featured bythe centralization of supply and demand for the transaction of orders by member brokers, forinstitutional and individual investors. The exchange makes buying and selling easy. Forexample, you dont have to actually go to a stock exchange, say, BSE - you can contact abroker, who does business with the BSE, and he or she will buy or sell your stock on yourbehalf. All stock exchanges perform similar functions with respect to the listing, trading, andclearing of securities, differing only in their administrative machinery for handling thesefunctions. Most stock exchanges are auction markets, in which prices are determined by
11 | P a g ecompetitive bidding. Trading may occur on a continuous auction basis, may involve brokersbuying from and selling to dealers.In certain types of stock or it may be conducted through specialists dealing in aparticular stock.But where did it all start? The need for stock exchanges developed out of early tradingactivities in agricultural and other commodities. During the middle Ages, traders found iteasier to use credit that required supporting documentation of drafts, notes and bills ofexchange. The history of the earliest stock exchange, the French stock exchange, may betraced back to 12th century when transactions occurred in commercial bills of exchange.The first stock exchange in India, Bombay Stock Exchange was established in 1875 asThe Native Share and Stockbrokers Association and has evolved over the years into itspresent status as the premier stock exchange in the country. It may be noted that BSE is theoldest stock exchange in Asia, even older than the Tokyo Stock Exchange, which was foundedin 1878. The countrys second stock exchange was established in Ahmedabad in 1894,followed by the Calcutta Stock Exchange (CSE). CSE can also trace its origin back to 19thcentury. From a get together under a Neem Tree way back in the 1830s, the CSE wasformally established in May 1908.Indias other major stock exchange National Stock Exchange (NSE), promoted by leadingfinancial institutions, was established in April 1993. Over the years, several stock exchangeshave been established in the major cities of India. There are now 23 recognized stockexchanges — Mumbai (BSE, NSE and OTC), Calcutta, Delhi, Chennai, Ahmedabad,Bangalore, Bhubaneswar, Coimbatore, Guwahati, Hyderabad, Jaipur, Kochi, Kanpur,Ludhiana, Mangalore, Patna, Pune, Rajkot, Vadodara, Indore and Meerut. Today, most of theglobal stock exchanges have become highly efficient, computerized organizations.Computerized networks also made it possible to connect to each other and have fostered thegrowth of an open, global securities market.Realizing there is untapped market of investors who want to be able to execute their owntrades when it suits them, brokers have taken their trading rooms to the Internet. Known asonline brokers, they allow you to buy and sell shares via Internet.
12 | P a g eOnline Trading is a service offered on the Internet for purchase and sale of shares. In thereal world, you place orders on your stockbroker either verbally (personally or telephonically)or in a written form (fax). In Online Trading, you will access a stockbrokers website throughyour internet-enabled PC and place orders through the brokers internet-based trading engine.These orders are routed to the Stock Exchange without manual intervention and executedthereon in a matter of a few seconds.There are 2 types of online trading service: discount brokers and full service online broker.Discount online brokers allow you to trade via Internet at reduced rates. Some provide qualityresearch, other don‘t. Full service online brokerage is linked to existing brokerages. Thesebrokers allow their clients to place online orders with the option of talking/ chatting to brokersif advice is needed. Brokerage rates here are higher. Indiainfoline.com,ICICIDirect.Com, IndiaBulls.Com, AngelBroking.com, Angel broking.Com,HDFCSecurities.Com is some of the online broking sites in India.ONLINE TRADING PROCESS :-The various transactions involved in online trading can be shown from the point of view of the Client Broker Stock Exchange.
14 | P a g eCHAPTER-2COMPANY PROFILEINTRODUCTION AND HISTORY :-“Angel Broking” is the retail broking arm of SSKI, an organization with more thaneight decades of trust & credibility in the stock market. It is Indias leading retail financialServices Company with We have over 250 share shops across 115 cities in India. While oursize and strong balance sheet allow us to provide you with varied products and services at veryattractive prices, our over 750 Client Relationship Managers are dedicated to serving yourunique needs. Angel Broking is lead by a highly regarded management team that has investedcrores of rupees into a world class Infrastructure that provides our clients with real-timeservice & 24/7 access to all information and products. Our flagship Angel BrokingProfessional Network offers real-time prices, detailed data and news, intelligent analytics, andelectronic trading capabilities, right at your fingertips. This powerful technologycomplemented by our knowledgeable and customer focused Relationship Managers. We arecreating a world of Smart Investor. Angel Broking offers a full range of financial services andproducts ranging from Equities to Derivatives enhance your wealth and hence, achieve yourfinancial goals. Angel Broking Client Relationship Managers are available to you to help withyour financial planning and investment needs. To provide the highest possible quality ofservice, Angel Broking provides full access to all our products and services through multi-channels.
15 | P a g eINTRODUCTION TO ANGELIn a shot span of 22 years since inception, the Angel Group has emerged as one of the topfive retail stock broking houses in India, having membership of BSE, NSE and the two leadingCommodity Exchanges in the country i.e. NCDEX & MCX. Angel Broking is also registeredas a Depository Participant with CDSL.The group is promoted by Mr. Dinesh Thakkar, who started this business as a sub-brokerin 1987 with a team of 3. Today the angel group is managed by a team of 1937 directemployees and has a nationwide network comprising of 21 Regional hubs, 124 branches and6810 sub brokers & business associates. Angel is 100% focused on retail stock brokingbusiness unlike any other larger national broking house. The group currently services morethan 5.9 thousand retail clients.Angel habitually generates value added features without the cost burden being passed onto the clients as they strongly believe that better understanding of client‘s needs and wants istheir top priority. Their e-broking facility is one such effort, which gives the client a platformto access state of the art trading facility at the click of a button.Angel has always strived for delivering customer delight and developing strong long termbonds with its clients as well as channel partners. Angel thrives on a vision to introduce newand innovative products and services constantly. Moreover, Angel has been among thepioneers to introduce the latest technological innovations and integrate them efficiently withinits business.About the AngelAngel Booking‘s tryst with excellence in customer relations began more than 20 yearsago. Angel Group has emerged as one of the top 3 retail broking houses in India andincorporated in 1987. Today, Angel has emerged as a premium Indian stock-broking andwealth management house, with an absolute focus on retail business and a commitment toprovide "Real Value for Money" to all its clients.
16 | P a g eIt has memberships on BSE, NSE and the leading commodity exchanges in India NCDEX& MCX. Angel is also registered as a depository participant with CDSL.Angel Group CompaniesAngel Broking Ltd.Member on the BSE and Depository Participant withCDSLAngel Capital & Debt MarketLtd.Membership on the NSE Cash and Futures & OptionsSegmentAngel Commodities Broking Ltd. Member on the NCDEX & MCXAngel Securities Ltd. Member on the BSE Incorporated :1997 BSE Membership :1997 NSE membership :1998 Member of NCDEX and MCX Depository Participants with CDSLAngel’s presence :- Nation- wide network of 21 regional hubs Presence 124 cities 6800 + sub brokers & business associates 5.9 lakh + clients
17 | P a g eManagementS.No Name Designation & Department1. Mr. Dinesh Thakkar : Founder Chairman & Managing Director2. Mr. Lalit Thakkar : Director – Research3. Mr. Amit Majumdar : Executive Director – Strategy and Finance4. Mr. Rajiv Phadke : Executive Director – HR & Corp5. Mr. Vinay Agrawal : Executive Director – Equity Broking6. Mr. Nikhil Daxini : Executive Director - Sales and Marketing7 Mr. Hitungshu Debnath :Executive Director - Distribution & WealthManagement8. Mr. Mudit Kulshreshtha : Executive Director – OperationsMilestones Awarded with Broking House with Largest Distribution Network and Best RetailBroking House at Dun & Bred street Equity Broking Awards 2009 August, 2008 Crossed 500000 trading accounts● November, 2007 ‗Major Volume Driver‘ for 2007● December, 2006 Created 2500 business associates● October, 2006 ‗Major Volume Driver‘ award for 2006● September, 2006 Launched Mutual Fund and IPO business● July, 2006 Launched the PMS function● October, 2005 ‗Major Volume Driver‘ award for 2005● September, 2004 Launched Online Trading Platform● April, 2004 Initiated Commodities Broking division● April, 2003 First published research report● November, 2002 Angel‘s first investor seminar● March, 2002 Developed web-enabled back office software● November, 1998 Angel Capital and Debt Market Ltd. Incorporated● December, 1997 Angel Broking Ltd. Incorporated
22 | P a g eOUR ORGANIZATIONAL STRUCTUREProducts of Angel Broking1. Online Trading 8. Personal loans2. Commodities 9. Quality assurance3. DP Services4. PMS (Portfolio Management Services)5. Insurance6. IPO Advisory7. Mutual FundCSO (CentralSupportOffice)Regional OfficeBranches &FranchiseBranchesAngel ClientsBranches &FranchiseBranchesBusinessAssociatesAngel ClientsBranches &FranchiseBranchesRegional Office Regional Office
23 | P a g eOnline- TradingSpecially designed for the net savvy traders and investors who prefer operatingfrom their home or office through the internet. The investor can access state of the artTechnology with three different e-broking products and voila trading on BSE, NSE, F &O, MCX and NCDEX.ANGEL DIET Application based product for Traders. Application based ideal for traders. Multiple exchanges on single screen Online fund transfer facility User friendly & simple navigation BSC, NSC, F&O, MCX & NCDEXANGEL ANYWHERE Application based product for Traders with Charts. Application-based platform for day traders Intra-day/historical charts with various indicators Online fund transfer facility BSC, NSC, Cash & DerivativesANGELTRADE Browser based product for Active Investors. Browser based for investor No installation required Advantage of mobility Trading as simple as internet surfing BSC, NSC, F&O, MCX & NCDEX
24 | P a g eANGEL INVESTOR User-friendly browser for investors Easy online trading platform Works in proxy and firewall system set up Integrated Back office: Access account information – anytime, anywhere Streaming quotes Refresh static rates when required Multiple exchanges on single screen Online fund transfer facilityInvestment Advisory ServicesTo derive optimum returns from equity as an asset class requires professional guidanceand advice. Professional assistance will always be beneficial in wealth creation. Investmentdecisions without expert advice would be like treating ailment without the help of a doctor.● Expert Advice: Their expert investment advisors are based at various branches acrossIndia to provide assistance in designing and monitoring portfolios.● Timely Entry & Exit: Their advisors will regularly monitor customers‘ investments andguide customers to book timely profits. They will also guide them in adopting switchingtechniques from one stock to another during various market conditions.● De-Risking Portfolio: A diversified portfolio of stocks is always better than concentrationin a single stock. Based on their research, They diversify the portfolio in growth orientedsectors and stocks to minimize the risk and optimize the returns.CommoditiesA commodity is a basic good representing a monetary value. Commodities are most oftenused as inputs in the production of other goods or services. With the advent of new online
25 | P a g eexchange, commodities can now be traded in futures markets. When they are traded on anexchange, Commodities must also meet specified minimum standards known as basic grade.Types of Commodities● Precious Metals : Gold and Silver● Base Metals : Copper, Zinc , Steel and Aluminum● Energy : Crude Oil, Brent Crude and Natural Gas● Pulses : Chana , Urad and Tur● Spices : Black Pepper, Jeera, Turmeric , Red Chili● Others : Guar Complex, Soy Complex, Wheat and SugarBenefits at Angel● Three different online products tailored for traders & investors.● Single Screen customized market-watch for MCX / NCDEX with BSE / NSE.● Streaming Quotes and real time Rates. Intra-day trading calls.● Research on 25 Agro Commodities, Precious and Base Metals, Energy products andPolymers.● An array of daily, weekly and special research reports.● Highly skilled analysts with professional industry experience.● Active relationship management desk.● Seminars, workshops and investment camps for investorsDepositary Participant ServicesAngel Broking Ltd. is a DP services provider though CDSL. We offer depository servicesto create a seamless transaction platform to execute trades through Angel group of companiesand settle these transactions through Angel Depository services.● Wide branch coverage● Personalized/attentive services of trained a dedicated staff
26 | P a g e● Centralized billing & accounting● Acceptance & execution of instruction on fax● Daily statement of transaction & holdings statement on e-mail● No charges for extra transaction statement & holdings statementPortfolio Management ServicesSuccessful investing in Capital Markets demands ever more time and expertise.Investment Management is an art and a science in itself. Portfolio Management Services(PMS) is one such service that is fast gaining eminence as an investment avenue of choice forHigh Net worth Investors (HNI). PMS is a sophisticated investment vehicle that offers a rangeof specialized investment strategies to capitalize on opportunities in the market. The PortfolioManagement Service combined with competent fund management, dedicated research andtechnology, ensures a rewarding experience for its clients.Angel PMS brings with it years of experience, expertise, research and the backing ofIndias leading stock broking house. At Angel, experienced portfolio management is thedifference. It will advise you on a suitable product based on factors such as your investmenthorizon, return expectations and risk tolerance.DEPARTMENT STUDYPRODUCT & SERVICE DETAILS AND PORTFOLIO REPORTS : Market Outlook at 9:15 a.m. Technical Report at 6:00 p.m. Derivative Analysis Report at 9:15 a.m.
27 | P a g e FUNDAMENTAL RESEARCH SERVICES: The Sunday Weekly Report :This weekly report is the ace of all reports. It offers a comprehensive marketoverview and likely trends in the week ahead. It also presents few top picks based onan in-depth analysis of technical and fundamental factors. It gives short term and longterm outlook on these scrip‘s, their price targets and trading strategies. Another uniquefeature of this report is that it provides an updated view of about 70 prominent stockson an ongoing basis. The Industry Watch :This report provides an in-depth analysis of specific industries which are likelyto outperform others in the economy. It analyzes their strengths and weaknesses andascertains their future outlook. The final view is arrived at after thorough interactionwith industry experts. Also comparative performances of various companies in thesector are evaluated and top picks are recommended. Stock Analysis :Angel‘s stock research has performed very well over the past few years and theAngel Model Portfolio has consistently outperformed the benchmark indices. Thefundamentals of select scrip are thoroughly analyzed and an actionable advice isprovided along with investment rationale for each scrip. Flash News :Key developments and significant news announcements that are likely to havean impact on markets / scrip are flashed live on trading terminals. Flash news keepsthe market participants updated on an online basis and helps them to reshuffle on theirholdings.
28 | P a g e TECHNICAL RESEARCH SERVICE : Nifty Tracker :Nifty Futures is the most traded instrument with highest volumes in F & O andexcellent liquidity. The team tracks the Nifty Future and generates calls based onunique trading system which is a result of their focused research over the past fewyears. The objective is to generate positive returns for traders who are looking for ahigh risk / high reward product. Online Chart :An online forum to help clients, specifically day traders in judging thedirections of the market and stocks which are in the limelight. Intraday Calls :For day traders, Angel provides intra-day calls with entry, exit and stop losslevels during market hours. These calls are flashed on their terminals. Their analystscontinuously track the calls and provide recommendations according to the marketmovements. Position Calls :Angel‘s ―Position Trading Calls‖ are based on thorough analysis of the pricemovement in select scrip‘s. These calls are for a 10-15 day time span with stop lossand target levels. These calls are flashed on their terminals during market hours. Derivative Strategies :Their analysts take view on the Nifty and select stocks based on the derivativesdata and technical tools. Suitable ―Derivative Strategies‖ are devised, which areflashed on their terminals and published in their reports.
29 | P a g e Futures Calls :A customized product for HNIs to help them trade with leveraged position;wherein clients are advised on the stocks with entry, exit and stop loss level for shortterm benefits. Over and above this, financial status of the calls is monitored at alltimes. INVESTMENT ADVISORY DESK:At Angel, they have a dedicated Investment Advisory Desk :- To help manage client‘s equity portfolio and create wealth To help client understand their risk profile and define investment goals realistically To minimize client‘s risk and maximize their returns To help client decide what to buy / sell and when to buy / sell To help client‘s understand macro-economic trends and sectoral / companydevelopments To help client restructure their portfolio based on sound research PORTFOLIO MANAGEMENT SERVICES :Angel offers discretionary PMS to investors in order to assist them in managingtheir funds amidst continuous changing market dynamics and increasing complexities ofinvesting. Investing in equity market requires in-depth knowledge and thorough analysiscoupled with clear understanding of domestic and international economies. Investors needthe services of an expert to manage their funds and deliver good returns in diverse marketconditions. Continuous wealth creation with and emphasis on capital preservation isessential in today‘s complex markets.In order to systematically diversify the holdings of clients across varied sectors andwith and intention to give them handsome returns, Angel devised the concept of the ModelPortfolio :-
30 | P a g e Angel came out with its first Model Portfolio in August 2002 Since then it has come out with Model Portfolios which have consistentlyoutperformed the Sensex YOY In fact the latest model portfolio by Angel has successfully outperformed theSensex by a whopping 80%Angel‘s Portfolio Advisory Team had a successful track record of assisting its clients inmanaging their portfolios for over 4 years.The Portfolio Management Process starts with understanding each investor‘s risk appetiteand return expectations. The Portfolio Management Team not only draws support fromAngel‘s in-house research team for new investment ideas but also has its own stocks pickingby adopting bottom up research.Salient features of PMS schemes are 100% discretionary, time horizon 12-18 months andWealth creation at minimum risk. PMS SCHEMES @ ANGELScheme 1: Angel OYSTERDescription :The main objective of the scheme is wealth generation by delivering superior returns overlong term through investments and equity related instruments.Investment Strategy : To generate wealth on consistent basis rather than outperform by taking higher risk. Logic works well and thus will be given weight age along with financials Early identification of stocks to ride through the entire investment cycle Timing of investment is important to generate superior returns Bottom –up approach
31 | P a g eParameters Driving Investment Decision : Blend of growth and value stocks Investments in companies regardless of market capitalizations Keen selection of stocks based on potential for value unlocking based on key events Focus on companies which display Scalable business potential Large market opportunity Beneficiary of favorable economic cycle Valuation at steep discount to asset valueSectoral Composition : May include under- researched companies Portfolio could invested in liquid fundsInvestor Profile : Safety of capital will be of utmost importance The scheme would be suited for investors having medium to long term perspective (i.e.12-18 months)Scheme 2: Angel BLUE- CHIPDescription :The objective of the scheme is to generate capital appreciations in the medium to longterm through investments in equities and equity related instruments comprising predominantlylarge cap companies.
32 | P a g eInvestment Strategy : The scheme will seek to achieve returns through brand based participants in equitymarkets by creating a diversified equity portfolio. The portfolio will be overweight onlarge cap companies. The portfolio strives at all time to achieve an 80% allocation to large cap companies. The allocation of sectors and stocks in the portfolio may be dynamically structured intune with changes in broader market conditions Overweight on large cap stock. However quality mid cap stocks may also beconsidered for investment. Portfolio to comprise of a combination of growth & value stocks. The portfolio strives to limit the exposure to any sector to less than 25% of theportfolio size The portfolio strives to limit the exposure to any stock to less than 10% of theportfolio size The allocation and composition of medium capitalized stocks to vary based marketconditionsInvestor Profile : The scheme would be suited for investors with low to moderate risk appetite The scheme would be suited for investors having medium to long term perspective.Benefits of Angel PMS : Understanding risk : At Angel, utmost emphasis is given to understanding the riskprofile of an investor. Periodic Evaluation : Periodic evaluation of the Model Portfolio is carried out andmarket movements are cashed upon.
33 | P a g e Administrative Convenience : Angel focuses on providing hassle free administrative /operational support and customized services. Transparency : Regular statements and updates as well as online access to informationrequired for investment. Regular Analysis and Monitoring : Investments undergo regular monitoring andanalysis to check any deviation from the structured goal ensuring creation of wealthover a period of time. Professional Management : PMS is provided to professional management by expertson equity with an aim to optimize returns.Angel PMS – Ideal For :Portfolio Management Services from Angel are essential for investor who needed Long term wealth generation Personalized service Investment opportunities in Indian equities Fundamental research based investment decisionsIn essence, all investor who have faith and belief in the Indian growth story and robustcorporate performance would find Angel PMS most suitable to meet their objectives. ANGEL GOLD :In a volatile market it is very difficult for an investor to pick up value stocks whichwill give decent returns in the long run. We at Angel Gold realize your need for a professionalfinancial advisor and hence are here to assist you in making wise and profitable decisions.We strongly believe that right decisions taken at the right time are always beneficialand thats why our entire research team comprising of 12 sector specialists along with our
34 | P a g eresearch head will understand your need, return expectation, risk profile and time horizon todesign your portfolio accordingly. This portfolio will be tracked regularly and our effortswould be to optimize your returns in the long run.Features of the Angel Gold : A premium service for clients who need professional guidance on long term investments. Minimum fund / portfolio of Rs. 1 lakh and maximum of Rs. 4 lakh eligible for AngelGold. Appropriate risk profiling before taking investment decisions Periodic group meetings and seminars in branches. Monthly Newsletter from the desk of ―Angel Gold‖ . Browser based back-office software. COMMODITIES SERVICES : Agro Tech Speak :Mainly gives the investors insight into and a forecast for agro commodities viz.pulses (urad, channa etc); reports on oil complex (soybeans castor etc.) along withspices with reports on kapas guar seed. Call Evaluation :A report designed for evaluating the calls given by the angel research teamwhere the reports are classified in 3 broad categories viz. achieved, triumph, notachieved along with the trade recommendations.
35 | P a g e Commodities Tech Speak :This report mainly equips the investors dealing in MCX segment incommodities like gold, silver, crude oil, copper etc with the market insight and expertrecommendation on the trading strategies Angel Commodity Advantages : Top Quality Research :o Professionally qualified analysts with rich industry experienceo Research on 25 agro commodities, precious metals, base metals, energyproducts and polymers E-Broking :o Single screen customized market watch for MCX / NCDEX with BSE / NSEo Streaming quotes and intraday calls DP Facilities in Commodities Trading on CDSL 24x7 Online Back-office Efficient Risk Management Competitive Brokerage Rates MUTUAL FUND DISTRIBUTION AND ADVISORY :To enable clients to diversify their investment in the right direction, Angel Broking hasadded another product in its range with mutual funds : Customized investment solutions based on specific individual‘s financial goals alignedwith client‘s risk appetite.
36 | P a g e Access to in-depth research and proper selection from diversified funds based onclient‘s preferred criteria. Customized reports at desired frequency. Rating and Rankings of all Mutual Funds from in-house expert analysts. Current and historical performance of different funds enabling comparisons. News and alerts for client‘s Mutual Fund Portfolio and performance tracking withwatch lists. Online Mutual Funds applications (NFO or existing) / Online order status tracking /online updating of unit holdings at latest NAV / Online dividend payout and re-investment facility. Single point customer query handling. IPO DISTRIBUTION AND ADVISORY : Wide network of branches for better customer reach. Dedicated Research Teams generating sector related reports. Ease in investing with informed decision making. Advisory Help Desk for all IPO related queries. DEPOSITORY PARTICIPANT SERVICE :Angel Broking Ltd. is a DP Service provider through CDSL. They offerDepository Services to create a seamless transaction platform to execute trades throughAngel Group of Companies and settle these transactions through Angel DepositoryServices. Hassle free automated pay-in of client‘s sell obligations by Angel Broking Ltd. / AngelCapital & Debt Market Ltd.
37 | P a g e Instant disbursement of non-cash benefit like bonus and rights Wide Branch coverage Personalized / Attentive services of trained and dedicated staff Centralized billing and Accounting Acceptance and Execution of instructions on ―fax‖ ―Zero‖ upfront payment and lowest transaction charges Daily statement of transactions and holding statements on e-mail No charges for extra transaction statement and holding statementBROKERAGEFollowing schemes are available for trading Account :Prepaid Scheme A Rs 2000/- per AnnumScheme Type ATable A Table BBrokerage Rate(for AMC Scheme Account)Brokerage Rate(for non AMC Scheme Account)AMC AMC Rs. 2,000 pa NilAccount openingCharges (one time) Speed Trade A/c Rs.1,000 Classic Account Rs. 750 Offline Account Speed Trade Account Rs.1,000 Classic Account Rs. 750 Offline AccountPercentage Min. Paisa Percentage Min. PaisaCash SegmentTradingFirst Leg 0.07% 05p 0.10% 10Second Leg 0.07% 05p 0.10% 10DeliveryDelivery Brokerage 0.40% 10p 0.50% 50
38 | P a g eOther charges Cash segment (Trading and Delivery)Stamp Duty Y Y Y YTurnover Tax Y Y Y YService tax Y Y Y YDefault Brokerage Futures & Options SegmentFirst Leg 0.07% 01p 0.10% 10Second Leg (same day) 0.02% 01p 0.0% 00Next day 0.07% 01p 0.10% 10Other charges F&O SegmentStamp Duty Y Y Y YTurnover Tax Y Y Y YService tax Y Y Y YDefault Brokerage Prepaid Scheme Rs 6000/- per AnnumScheme Type BTable A Table BBrokerage Rate(for AMC Scheme Account)Brokerage Rate(for non AMC Scheme Account)AMC AMC Rs. 6,000 pa NilAccount openingCharges (one time) Speed Trade A/c Rs.1,000 Classic Account Rs. 750 Offline Account SpeedTrade Account Rs. 1,000 Classic Account Rs. 750 Offline Account
39 | P a g ePercentage Min. Paisa Percentage Min. PaisaCash SegmentTradingFirst Leg 0.05% 05p 0.10% 10Second Leg 0.05% 05p 0.10% 10DeliveryDelivery Brokerage 0.25% 10p 0.50% 50Other charges Cash segment (Trading and Delivery)Stamp Duty Y Y Y YTurnover Tax Y Y Y YService tax Y Y Y YDefault Brokerage Futures & Options SegmentFirst Leg 0.05% 01p 0.10% 10Second Leg (same day) 0.02% 01p 0.0% 0Next day 0.05% 01p 0.10% 10Other charges F&O SegmentStamp Duty Y Y Y YTurnover Tax Y Y Y YService tax Y Y Y YDefault Brokerage Along with these above schemes many other competitive schemes are available forcustomers depending on their volume of trading.
40 | P a g eOTHER FEATURES :-1. Angel Broking First step Program :-What is:-In the complex world of investing in shares in India, interested beginners didnthave any place they could start out from. This is why Angel Broking started the FirstStep program - to assist and guide new investors when they take their first steps intothe world of investing in shares. This program is explicitly designed for beginners.You will not feel unintelligent when asking questions like "Who owns the StockMarket?" or "What is a stock-split?" since Angel Broking people are trained to assistthose taking their first step in the market.Consist of:-The Angel Broking First Step program is a special, never-been-done-beforeprogram created by Angel Broking for new investors to the stock market. Despitebeing a beginner with a small amount to invest, they will still be able to benefit fromAngel Broking experience, technology-based tools and research. In fact, AngelBroking have created special versions of all of these for clients - clear and simpleinformation tools for there understanding, demonstrations to help them get started andresearch re-written in easier language. See how Angel Broking friendly assistanceempowers them to become a Stock Market ka Sher.2. Angel Broking Value line :-A monthly investment report based on fundamental research with Stock ideas,Stock Updates, Earning Guide, Stock Recos, Mutual Fund Guide , Market Outlook, SectorUpdates.
41 | P a g eSWOT Analysis :-A SWOT analysis focuses on the internal and external environments, examiningstrengths and weaknesses in the internal environment and opportunities and threats in theexternal environment.STRENGTH Service Distribution network Marketing ProductsWEAKNESS Customer Satisfaction Branding Competition from BanksOPPORTUNITIES Ever increasing market Improving technology Unfulfilled needs ofcustomers. Education levelTHREATS New competitors Technology basedbusiness
42 | P a g ePROCEDURE OF CLIENT ACQUISITION :- In the first phase we are given training and we are explained about different things ofmarket about Angel Broking Ltd, its introduction, products and services offered byAngel Broking Ltd. We have been trained by their well experienced Staff. After that we are trained to cope up with the customers, through there well experiencedSales Executives. They provide us leads and we make calls. Three types of leads are provided to us :- People who registers themselves on Angel Broking website willing to be client ofAngel broking and want to know about its product. People who have Demat account already with any another broker. (competitorsData) People who are totally unknown to this market. Then after that we have to provide details of product and convince them. People whohave already demat account; we have to convince them by giving information aboutAngel Broking services & benefits. And people who are unknown to share market, we tell them about Angel Brokingfirst step program for fresher. Then we have to visit them and get the formed filled from them. We collect all-important documents from client.PROCEDURE FOR OPENING A DP ACCOUNT WITH ANGEL BROKING :- You can open a Depository Participant (DP) account, either through an Angel Brokingbranch or through an Angel Broking Franchisee center. There is no fee for opening DP accounts with Angel Broking. However a nominaldeposit (refundable) is charged towards services which will be adjusted against allfuture billings. All investors have to submit their proof of identity and proof of address along with theprescribed account opening form.
43 | P a g eIN DP ACCOUNT OPENING FORM :-1. Minor details like name of the branch, name of the client & address and other details ofthe client required to be mentioned in the form and Agreement.2. Signatures are required on all pages of the agreement.3. All the details (Name & address of the client) must be filled.4. Name, Address & signature of the witness are compulsory. (Please note that 1 witnessis required to sign on behalf of the client)5. Please note that if the signature on the form & the proof provided differs, the form willbe liable for rejection. In such cases the client has to get his signatures verified by thebanker.6. Nominee details must be supported by 2 witnesses (Name, Address & signature).7. Minor accounts, HUF accounts, Corporate accounts, and Accounts having 3 holderscannot have nominees in a DP account.8. Please note that joint accounts cannot be opened in case Minor accounts and HUFaccounts.9. In case of any corrections on the application form & agreement holders have to countersign at place of the correction.ACCOUNT OPENING REQUIREMENTS UNDER VARIOUS HEADS :-(i) Proof of Identity (Any one of the following) :-1. Photocopy of Valid Passport (Page containing the date of expiry also to be attached)2. Photocopy of Voters Identity card.3. Photocopy of Valid Driving License (Page containing the date of expiry also to beattached).4. Photocopy of Pan card5. Photocopy of MAPIN card6. Identity card/document with applicant‘s Photo, issued by
44 | P a g ea) Central/State Government and its Departments,b) Statutory/Regulatory Authorities,c) Public Sector Undertakings,d) Scheduled Commercial Banks,e) Public Financial Institutions,f) Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council etc., to their Members;andg) Credit cards/Debit cards issued by Banks.(ii) Proof of Address (Any one of the following) - (Provided the entire address writtenon the form matches with the proof):-1. Photocopy of Ration card.2. Photocopy of Valid Passport (Page containing the date of expiry also to be attached).(Copy of expiry date also to be submitted)3. Photocopy of Voters Identity card.4. Photocopy of Valid Driving License (Page containing the date of expiry also to beattached). (Copy of expiry date also to be submitted)5. Photocopy of Telephone or Electricity bill. (Government entity only & should not bemore than 3 months old)6. Photocopy of Leave-License / Purchase Agreement.7. Photocopy of Voters Identity card.8. Photocopy of Bank Passbook or latest Bank statement.9. Self-declaration by High Court & Supreme Court judges, giving the new address inrespect of their own accounts.10. Identity card/document with address, issued bya) Central/State Government and its Departments,b) Statutory/Regulatory Authorities,c) Public Sector Undertakings,
45 | P a g ed) Scheduled Commercial Banks,e) Public Financial Institutions andf) Professional Bodies such as ICAI, ICWAI, Bar Council etc., to their Members.(iii) Photocopy of cheque leaf of bank account number mentioned on the form to verify theBank MICR No.(iv) Latest photograph signed by the client.FOR H.U.F ACCOUNT OPENING REQUIREMENTS :-1. Signed Photograph of the Karta is required.2. Proof of Identity of the Karta3. Pan card of HUF4. Proof of Address5. Photocopy of cheque leaf of bank account number mentioned on the form to verify theBank MICR No.6. HUF Stamp is required wherever the client signs on the agreement.7. Letter from the Karta operating the Demat account with the two witnesses ofcoparceners.8. No joint names & nominees allowed for HUF accounts.FOR MINOR ACCOUNT OPENING REQUIREMENTS :-The account opened in the name of the minor cannot have second and third holders.Further there can be no nominee for minor account. The Guardian has to sign on behalf of theMinor.1. Birth Certificate of the Minor.2. Guardian‘s Proof of Address.3. Guardian‘s Proof of Identity.4. Photograph of the Minor & Guardian.5. Photocopy of cheque leaf
46 | P a g eFOR N.R.I. (NON RESIDENT INDIAN) CLIENT :-1. Latest photograph signed by the client.2. Photocopy of Valid Passport (Page containing the date of expiry also to be attached)3. Proof of Local Address4. Proof of Foreign Address5. Photocopy of cheque leaf of bank account number (NRE or NRO) mentioned on theform to verify the Bank MICR No.FOR PARTNERSHIP FIRM :-The account cannot be opened in the name of a partnership firm. It has to be opened in thename of the partners, as an individual account. Maintaining dairy of clients and contactingthem at regular basis. To get feedback from them about Angel Broking services.
47 | P a g eCHAPTER - 3COMPETITOR’S ANALYSISICICIDIRECT.COMPRODUCTS AND SERVICES :-A product for every need: ICICIdirect.com is the most comprehensive website, whichallows you to invest in Shares, Mutual funds, Derivatives (Futures and Options) and otherfinancial products. Simply they offer you a product for every investment need of yours.ICICI Web Trade Limited (IWTL) maintains ICICIdirect.com. IWTL is an affiliate ofICICI Bank Limited and the Website is owned by ICICI Bank Limited.1. TRADING IN SHARES :-ICICIdirect.com offers you various options while trading in shares:-ICICIDIRECT.COMTRADINGINSHARESTRADING INDerivativeMUTUALFUNDSIPO ANDBONDONLINEPERSONALFINANCE
48 | P a g e Cash Trading :- This is a delivery based trading system, which is generally done withthe intention of taking delivery of shares. Margin Trading :- You can also do an intra-settlement trading up to 3 to 4 times youravailable funds, wherein you take long buy/ short sell positions in stocks with theintention of squaring off the position within the same day settlement cycle. (ONLY forintraday) Margin PLUS Trading :- Through Margin PLUS you can do an intra-settlement tradingup to 25 times your available funds, wherein you take long buy/ short sell positions instocks with the intention of squaring off the position within the same day settlementcycle. Margin PLUS will give a much higher leverage in your account against yourlimits. Spot Trading :- When you are looking at an immediate liquidity option, Cash on Spotmay work the best for you, On selling shares through "cash on spot", money is creditedto your bank a/c the same evening & not on the exchange payout date. This money canthen be withdrawn from any of the ICICIBank ATMs. BTST :- Buy Today Sell Tomorrow (BTST) is a facility that allows you to sell shareseven on 1stand 2ndday after the buy order date, without you having to wait for thereceipt of shares into your demat account. Call n Trade® :- Call n Trade® allows you to call on a local number in your city &trade on the telephone through our Customer Service Executives. This facility iscurrently available in over 11 major states across India. Trading on NSE/BSE :- Through ICICIdirect.com, you can trade on NSE as well asBSE.2. TRADE IN DERIVATIVES :-Future :-
49 | P a g eThrough ICICIdirect.com, you can now trade in index and stock futures on the NSE. Infutures trading, you take buy/sell positions in index or stock(s) contracts having a longercontract period of up to 3 months.Presently only selected stocks, which meet the criteria on liquidity and volume, havebeen enabled for futures trading.Calculate Index and Know your Margin are tools to help you in calculating yourmargin requirements and also the index & stock price movements.Option :-To take the buy/sell position on index/stock options, you have to place certain % oforder value as margin. With options trading, you can leverage on your trading limit by takingbuy/sell positions much more than what you could have taken in cash segment.3. IPOs AND BONDS ONLINE :-You could also invest in Initial Public Offers (IPOs) and Bonds online without goingthrough the hassles of filling ANY application form/ paperwork.Get in-depth analyses of new IPOs issues (Initial Public Offerings), which are about tohit the market and analysis on these. IPO calendar, recent IPO listings, prospectus/offerdocuments, and IPO analysis are few of the features, which help you, keep on top of the IPOmarkets.4. CUSTOMER SERVICE FEATURES :-With ICICIdirect Customer Tools & Updates you can trouble shoot all your problemsonline.The ICICI direct Advantages :-A Unique 3-in-1 account that gives you:Convenience :-The 3-in-1 accounts integrate your banking, broking and demat accounts. This enablesyou to trade in shares without going through the hassles of tracking settlement cycles, writing
50 | P a g echeques and Transfer Instructions, chasing your broker for cheques or Transfer Instructionsetc.Speed :-You can now get the latest quotes of scrip on ICICIdirect.com and place an orderalmost instantly.Control :-You can be assured that you have in fact placed an order at the price you alwayswanted to, but may not have been able to do so till now. Thereby giving you control over yourown trades.Independence :-Instead of transferring monies to a brokers pool or towards deposits, you can manageyour own demat and bank accounts when you trade through ICICIdirect.com.Trust :-ICICIdirect.com comes to you from ICICI, the organization trusted by millions ofIndians We can trade into NSE, BSE, Derivatives, Mutual funds, Personal Finance, IPO‘sonline. Margin plus trading is provided in which customer can buy share up to 25 times of itsmarginICICI DIRECT.COM :- A/C opening charges : Rs. 750 AMC : Rs 500 Brokerage : 0.03% Delivery : 0.75% Intraday : 0.07%(Exclusive of service tax for 12.24% & Service Transaction Tax)
51 | P a g eDEAL CLINCHERS VS ICICIDIRECT.COM :-1. Brokerage is 0.75 %( Delivery) and 0.07 %( Intraday).2. Margin of RS 5000/- is necessary to maintain in ICICIBank A/C.3. BTST facility is provided only on 127 scrip.4. While watching applet, only one-company rates can be seen and we have to refresh itagain and again to update the rates.5. Limited toll free numbers are provided, on 21stcall RS 20/- are charged.6. Compulsion to have bank a/c with ICICIBANK and your saving A/C is attached withICICI trading A/C. ICICIDIRECT has authority to debit your saving A/C directlywithout customer informing about this.7. Demat transaction charges are included in brokerage.8. Research reports are provided at RS 450/-p.a.9. Poor online Interface:Slow website interface with no real-time quotes creates dissatisfaction among highfrequency traders.10. Margin trading restriction :-The margin trading system is available up to 2:45 p.m. with outstanding net positionsunder margin segment automatically squared off at any time between 2:45 – 3:30 p.m.Thus no control of square off price.11.Morning Trades Issue :-Being one of the websites with largest no. of after hour orderswhich are pushed 1st thing in the morning, creates a choking of orders to the exchange, causesdelay of confirmations for new order placed during the early morning trades.12. Only Intraday Margin exposure :-The margin exposure of 3 or 4 times is only provided. for intraday.
52 | P a g eINDIABULLS.COM :-India bulls India‘s leading retail financial services company with 300 locations spreadacross 110 cities. While size and strong balance sheet allow it to provide you with variedproducts and services at very attractive prices, it‘s over 4400 Client Relationship Managers arededicated to serving your unique needs. India bulls are lead by a highly regarded managementteam that has invested crores of rupees into a world class Infrastructure that provides ourclients with real-time service & 24/7 accesses to all information and products. India bullsProfessional Network TMoffers real-time prices, detailed data and news, intelligent analytics,and electronic trading capabilities, right at your fingertips. This powerful technology iscomplemented by knowledgeable and customer focused Relationship Managers. It is creatinga world of Smart Investor.India bulls offer a full range of financial services and products ranging from Equitiesto Insurance to enhance your wealth and hence, achieve your financial goals.India bulls Client Relationship Managers are available to you to help with yourfinancial planning and investment needs. To provide the highest possible quality of service,India bulls provide full access to all our products and services through multi-channels.INDIABULLS :Charge HeadChargesAccount with POA Account without POAStamp Paper Charges Rs.200/- Rs.100/-AMC Nil Rs.250/-Custody Charges Nil Nil
53 | P a g eTransaction Charges Buy (Market / Off-Market) TransfersNil NilTransaction Charges Sell (Market / Off-Market) TransfersRs. 17/- perTransactionRs. 17/- per TransactionNil Rs.20/- per instruction.Pledge Creation / Confirmation /Closure/InvocationRs.25/- perTransactionRs.25/- per TransactionDMAT Rs.1 per certificate(max Rs.250 /-) +Rs.25 courierchargesRs.2 per certificate (maxRs.250 /-)+ Rs.25 courierchargesDMAT Rejections Rs.20 per rejection+ Rs.25 courierRs.20 per rejection +Rs.25 courierRemat Charges Rs.15 request or0.02% whichever ishigher.Rs.15 request or 0.02 %whichever is higher.Delivery Instruction Book Nil Rs.10/-No charges for first book.Fax Indemnity (Optional) N.A. Actual
54 | P a g eRESEARCH REPORTS :-Scheme Facilities1. W e b B a s e d - 1 -M o n t h -R s . 1 0 0 :This allows you to view and print reports forONE MONTH through our website.2. W e b B a s e d - 3 -M o n t h -R s . 2 7 0 :This allows you to view and print reports fora full QUARTER through our website.3. W e b B a s e d - 1 -Y e a r -R s . 1 0 0 0 :This allows you to view and print reports forONE YEAR through our website.4. P r i n t R e p o r t -1 - M o n t h -R s . 3 5 0 :This allows you to view and print reports forONE MONTH through our website plus youcan get 10 REPORTS PRINTED ANDDELIVERED to your doorstep on request.5. P r i n t R e p o r t -3 - M o n t h -R s . 9 5 0 :This allows you to view and print reports fora full QUARTER through our website plusyou can get 10 REPORTS PRINTED ANDDELIVERED to your doorstep on requestEACH MONTH.6. P r i n t R e p o r t -1 - Y e a r -R s . 3 5 0 0 :This allows you to view and print reports forONE YEAR through our website plus youcan get 10 REPORTS PRINTED ANDDELIVERED to your doorstep on requestEACH MONTH.
55 | P a g eADVANTAGES OF INDIABULLS :-1. No annual maintenance charges for Demat account.2. Listed company and aggressive in brand promotion.3. Control — Stay on top of your investments with convenient access to your accountonline or by phone.4. Confidence — Support your investing decisions with premium in-depth research -India bulls Equity Analysis.TM5. Value — Enjoy competitive commissions and get the service and support you need at afair price.6. Priority Service — Enjoy priority telephone access that gives you direct access to yourRelationship Manager.7. Premium Research — Benefit from full access to India bulls Equity Analysis TM, ourobjective, fact-based approach to rating stocks.8. Online Accounting — Stay on the top of your investments with a snapshot of yourAccount Statements. Get access to Portfolio statement and access to digital contractnotes.DEAL CLINCHERS Vs INDIABULLS :-1. Research reports are paid at RS 100 p.m.2. SMS alert service is not provided.3. IPO online is not there. It is offline.4. RS 500/- is blocked by system as margin.5. POA for Clients DMAT:All shares held by client trading with IB are moved to IB Pool Account and the same isshown as a reflection in client DP account. Charges are levied to move shares from IBpool Account to client DP account6. Annual maintenance charges are charged, if power of attorney is signed.7. Margin Funding hoax:
56 | P a g eThe interest on funding starts on leveraged delivery trades from T+1 day itself @21%p.a. on a daily basis8. The role of Relationship Manager:Each RM is looked upon as a revenue generator and he gets a % on business generatedfrom client. This can lead to over leveraged (Interest) & high frequency (Brokerage)trading, which may not be in the best interest of the client.ANALYSIS :-COMPETITORS COMPARISON :-ANGEL BROKING ICICIDIRECT. COMINDIABULLSA/COPENINGCHARGES750/- (web basedonline), 1000/- (softwarebased online), 460/-(offline)750/-(waive off iftrading is more thanRs. 1 lakh)1000(offline &web based)1750(software)
57 | P a g eDEMAT A/CCHARGESFREE (1STYEAR)AND 300/-P.A.FROM2NDYEARONWARDSFREE FOR 1STYEARAND 500/- P.A.FROM 2NDYEARONWARDSNO AMCTYPE OFA/C3(off line, fast trade &speed trade)Web based Web based&softwareTRADINGTHROUGHWEBSITEOR SOFT-WAREBOTH WEBSITE BOTHNSE/BSE/DERIVA-TIVES/ARBIT-RAGE/MUTUALFUNDSNSE/BSE/DERIVATIVES/COMMODITIES/IPO‘S/ MUTUAL FUNDS/INSUARANCENSE/BSE/MUTUALFUNDS/DerivativesNSE/BSEDERIVATIVESSOFT-WARECHARGES500/-P.M.(NEGOTIABLEON BROKERAGE)N.A. N.A.DAIL-N-TRADEUNLIMITED On 21stcall Rs 20/-per call(P.M.)RM NUMBERPROVIDEDFORTRADINGDEMATTRANSAC-NIL (THROUGHANGEL BROKING)INCLUDINGINRS. 17/-PER
58 | P a g eTIONCHARGESBROKERAG(Rs35) TRANSACTION(ON SELLING)TIE UPWITHBANKSNINE BANKS(DETAILS AREGIVEN EARLIER ONPROJECT)ICICIBANK ONLY(COMPULSORY)HDFC BANK,BUY TODAYSELLTOMOR-ROWYES YES BUTONLY ON127 SCRIPSOF NSEYESSMSALERTSYES YES YESMINIMUMMARGINEXPO-SURE4 TO 8 TIMES 4 TIMES 4 TIMESONWARDSMINIMUMMARGINNil 5000/- 500 BLOCKEDBY THE SYSTEMVolumerequirementNil Nil NILBROKE-RAGE.04%(INTRA).4%(DELIVERY).07% (INTRA-DAY).75%(DELIVERY).04%(INTRA).4%(DELIVERY)
59 | P a g eCHAPTER – 4RESEARCH METHODOLOGYOBJECTIVES OF THE STUDY :-The objective of my Project is to gain knowledge about how an organization works and inparticular setup of a stock broking house.PRIMARY OBJECTIVES OF THE PROJECT ARE :-1. To learn about company routine working2. To learn the marketing techniques that is used to acquire a client.SECONDARY OBJECTIVE :-1. To study the “ANGEL BROKING” competitors strengths and weaknesses.RESEARCH METHODOLOGY :-Research Methodology – ―Systemized Method to gain knowledge‖. The technique deployedto analyze and interpret the data for the purpose of hitting the target objective plays a crucialrole. The effective research technique has a significant contribution for effective objectiveachievement. Throughout this project, a combination of secondary and primary research wasundertaken to ANGEL BROKING LTD.DATA SOURCES :- Primary Data, Secondary Data
60 | P a g ePRIMARY DATA :-Primary data is a data that is collected for the first time in the processing of theanalysis.The researchers have adopted the contact through telephone for the purpose ofcollecting Primary data. The researchers discuss with Team Manager and employees of thecompany to get information about competitors of Angel Broking.SECONDARY DATA :-Under Secondary sources, we tapped information from internal & external sources. Wemade use of Internet (such as search engine www.google.com, www.icicidirect.com,www.indiabulls.com and miscellaneous sources (such as brochures, pamphlets, library) underexternal sources.ANALYSIS :-To make our research project most effective in a given time period of two monthssurveyed the information of the competitors. We undertook both Explorative as well asConclusive Research Design. The data has been collected from both Primaries as well asSecondary sources and we also did the fieldwork for which utmost care has been taken to keepproject unbiased from personal opinion.SIGNIFICANCE OF THE STUDY :-Every research is conducted to fulfill certain objective and these objectives in turn fulfillsome purpose. BBA curricular is designed to give more practical exposes to the student so thathe can make use of theoretical knowledge in the real life situation, with this thrust dissertationstudy has been included which provides opportunity to research to gain practical insight of themarket. This hand on experience helps him in identifying the critical factor of consumerbuying behavior. This rich experience will be great help in researcher‘s future endeavors and italso solves the purpose for the partial fulfillment of BBA curriculum.
61 | P a g eI sincerely believe that road to improvement is never- ending and one always learns from anew experience. This project is a step towards gaining knowledge about real world and puttingthe theory of practice. I shall look forward to and gratefully acknowledge all suggestion onthis small step I have taken.The report consists of a step–wise efforts towards meeting the objectives of the study. Itcovers the step-wise collection of data collection and the representation of the data togetherwith the analysis. It also includes some suggestions put forward hoping it would help thecompany achieve its vision.MANAGERIAL USEFULNESS OF THE STUDY :-The marketing department can use this study to enhance their marketing strategies forbetter sales. This report helps marketing department in taking decision to what change indistribution channels and what should be done so that marketing problem could be sorted outand how to sell their range of product in the competitive market.The very essence of every project related to marketing is providing a view to managementfor chalk out the organization. So that they can maintain a viable fit between the organizationobjective, skill and resources and its changing market opportunities. Also give proper shape tothe company business target profit and growth. It provides a feedback to the organizationabout their sales, sales schemes and what impact dose it has on the retailers and consumer.Every market research proves useful suggestion to the organization. Marketing research helpsthe firm in every component of the total marketing task. It helps the firm acquire a betterunderstating of the buyer, the competition and marketing environment. It also aids theformulation of the marketing mix, product, distribution and pricing needs marketing researchsupport. It also in taking the information of competitor‘s strategies and their impact on thebuyer. The study revels may fact that have come up during the project and these facts caneither be used as opportunities in exploring and expending the business as well as can be usedas safeguard against threats by the competitors to prepare an effective marketing strategy.Every market research proves usefulness to the organization. Marketing research helps thefirm in every component of the total marketing task. Its helps the firm acquire a better
62 | P a g eunderstanding of the consumer, the competition and the marketing environment. It also aids heformulation of marketing mix, decision on each element of marketing mix, product,distribution and promotion and pricing etc need the support of marketing research.LIMITATIONS OF THE PROJECT :- Services of competitors :- We cannot give proper comment on competitor‘s servicestill we use it. But I try to collect as accurate information as possible. As we all knowservices are intangible and we cannot predict its quality, it is a thing to feel not to see. No proper assurance of right information :- The main data sources are websites,telephonic information and offices visit. The data on websites might be possible, not get updated. The marketing person might be possible, is not through with all concepts towhich I contacted. Sometimes, they try to hide information. Lack of awareness of Stock market :- Since the area is not known before it takes lot oftime in convincing people to start investing in shares primarily in IPO‘s. Mostly people comfortable with traditional brokers :- As people are doing trading fromtheir respective brokers, they are quite comfortable to trade via phone. Lack of Techno Savvy people and poor Internet penetration :- Since most of the peopleare quite experienced and also they are not techno savvy. Also Internet penetration ispoor in India. Some respondents are unwilling to talk :- Some respondents either do not have time orwilling does not respond, as they are quite annoyed with the phone call. Inaccurate Leads :- Sometimes leads are provided which had error in it which variesfrom only 5 digit phone number to wrong phone number Misleading concepts :- Some people think that Shares are too risky and just anothername of gamble but they don‘t know it‘s not at all that risky for long investors.
63 | P a g eSCOPE OF THE STUDY :-These are some of the following scope of the study :-1. The present study can be extended to assess the present marketing condition of stockmarket.2. The study can be used to design a proper product, price, place & promotional strategyfor stock market.3. From the present study we can know the market share of different by-products andaccordingly formulated strategy to enhance it.4. The result of marketing success of different by-product can be interpreted to assess therate of employee‘s satisfaction in that department (marketing).5. This study can be applied to find out an effective distribution channel to enhance thesale of by-product of “ANGEL BROKING”.
64 | P a g eCHAPTER - 5FINDING, CONCLUSION & RECOMMANDATIONSOn surveying various people who are involved in share trading both as trader as wellas investor, we found that brokerage is the most important factor on which people select / opta broking house, followed by image , convenience in trading , customer service, features, tips& suggestion & AMC.What is interesting to note is the weighted contribution of these factors towardsdecision making. Although brokerage leads the pack it has only 19% contribution, and isclosely followed by broking houses‘ image with 18% and convenience in trade with 16%.AMC & tips & suggestions having only 10% contribution each towards decision making endup the pack.MOST IMPORTANT FACTOR WHILE SELECTING A BROKINGHOUSEAMCTIPS & SUGGESTIONFEATURESCUSTOMER SERVICECONVINIENCE(INTRADE)IMAGEBROKERAGEFACTORS
65 | P a g eOn surveying ANGEL BROKING Customer why they opted for same, we got to knowit was because of image ANGEL BROKING carries in the market, followed by its competitivebrokerage, convenience in trade, features, customer service, tips and suggestions, and AMC.Angel Broking Continuous increases its growth percentage as shown in the Graph &becomes one of the India‘s Topmost Online Trading Service Provider.CONCLUSION :-In online trading “ANGEL BROKING” have mainly competition with icicidirect.com,HDFCsec.com, 5Paisa.com India bulls. “ANGEL BROKING” comes at no. 2 retail broker. It hasan advantage of being in this industry for more than 8 decades. It has launched its website in2000 and was among the first player in the online share trading. The “ANGEL BROKING” hasdecided to spend its advertisement budget through four media i.e. Television, Print, Web andOutlets. Mr. Boman Irani was the first brand ambassador for “ANGEL BROKING” on televisionmedia. From the above analysis we can point out some points:-1. ANGEL BROKING account opening charges are little higher than other competitors.ANGEL BROKING is less flexible to cut down its account opening charges on the
66 | P a g eother side; some of the brokers are offering free account opening to High Net Worthcustomers.2. The charges of Demat account are reasonable at 300 p.a. but India bulls are offeringpool account with no Annual Maintenance charges.3. ANGEL BROKING provides trading in NSE, BSE and Derivatives. It also launchedonline Mutual Funds & Online IPO Bidding. Arbitrage facility is not available tocustomers.4. ANGEL BROKING is the only one that does not have any Demat transaction chargeseither on buying or selling.5. Unlimited toll free calls service is provided to customer in ANGEL BROKING.com.6. ANGEL BROKING accept offline payment from other banks also but icicidirect.com,HDFCsec.com clients have compulsion to open an online account.7. IPO Online service is better provided in ANGEL BROKING as compared to others.8. ANGEL BROKING is only broker in which no margin needs to keep.9. ANGEL BROKING research reports come in client e-mail at free of cost around 5-6times in a day. But some brokers charged for it and some provide it only at once in aday, while it is paid in Indiabulls, icicidirect.com and 5paisa.com.10. In brokerage, 5paisa.com have an edge on others with lowest brokerage .25% ondelivery and .05% on intradayTo sum up, we can say that computerization and automation are not to be avoided.Technology has been able to make the stock markets accessible to every individual. It has alsoled to positive developments in terms of reduced costs and fewer errors. But, as someexperiences have indicated, IT cannot be applied as a panacea for all problems. Regulationand knowledge dissemination are still important. The use of technology should be preceded bya detailed study and assessment of all other alternatives. The key to successful use totechnology is the appreciation of its constraints.
67 | P a g eRECOMMENDATION :-We suggest following measures, which ANGEL BROKING could take so as to take onheavy competition from INDIABULLS and ICICIDIRECT.COM1. To identify regions where promotions are required. ANGEL BROKING lacksvisibility in northern region where as it is a well known name in western region. Eventhen, its promotional campaign focuses on western region where as northern region isstill waiting for promotional campaigns.2. Try to reduce cost, so that benefits can be passed on to customers. Senior managers atANGEL BROKING keep on telling that it is difficult to reduce cost, because ofservices we provide. But the fact is, India being a price sensitive market, people attimes go for monetary benefits rather than for long term non- monetary benefits.3. If charges can‘t be reduced because of costs involved, make the services customized,so that services are provided to only those customers who are willing to pay the pricefor services they are getting and let the other customers enjoy costs benefits withoutgetting services.4. Concept of margin funding should be introduced, as more and more people are askingfor it.FINDINGS :-DEMOGRAPHIC FINDINGSAGE GROUPAge group(years) No. of respondentsBelow 20 020-35 3136-50 7851-65 59Above 65 32
68 | P a g eFigure : 1Out of total 200 respondents, below 20 years of age were none, 39% of the respondentsfalls in the age group of 36-50 years where as 29% were in the age group of 51-65 years andnext 16% falls in the group of more than 65 years.0102030405060708090Below 20 20-35 36-50 51-65 above 65No. of respondents
69 | P a g eJOB PROFILECategory No. of respondentsService 94Business 80Others 26Figure : 2Out of total respondents, most of respondents were from service class and 40 % wereduring business and rest of the respondents includes retired person, other people, otherprofessional‘s students etc.9480260No. of respondentsServiceBusinessOthers
70 | P a g eANNUAL INCOME (IN LACS)Income group No. of RespondentsLess than 1 lac 501-5 lacs 93More than 5 lacs 57Figure : 3Most of the respondents belong to the income group of 1-5 lakh followed by therespondents belong to income group of more than 5 lakh which is 28% of total respondentsand rest of Respondents belonging to the income group below 1 lakh.50.0093570No. of RespondentsLess than 1 lac1-5 lacsMore than 5 lacs
71 | P a g eEDUCATIONAL BACKGROUNDQualification No. of respondentsUnder graduate (U.G) 53Graduate 79Post graduate(PG) 55Others(O) 13Figure : 4Most of the respondents were graduate and 26% were post graduate and rest 6% belongto other category.537955130102030405060708090UndergraduateGraduate Post graduate OtherNo. of respondents
72 | P a g eQ1. When the respondent were asked their preference of investment, is cash market ,derivatives market or both, the following respondents were obtained .Options No. of respondentsOnly cash/capital market 76Only derivative market 21Both 103Figure : 5Out of 200 respondents amount 52% respondents their fund in cash and derivativemarket, 38% investment is only cash market and rest is derivative market.020406080100120Onlycash/capitalmarketonly derivativemarketBoth7621103No. of respondentsNo. of respondents
73 | P a g eQ2.When the respondents were asked about the time period for which they are investing,the following responses were obtained.Time period No. of respondentsLess than 1 year 251-5 year 97More than 5 year 78Figure : 6Out of total 200 respondents 12% respondents were new investors, 48% were investingfor 1-5 year and rest was for more than 5 year.259778No of respondentsLess than 1 year1-5 yearmore than 5 year
74 | P a g eQ3.When the respondents were asked about proportion of income they invest in sharesand securities, the following responses were obtained.Investment proportion No. of respondentsUp to 5% 475 to 10% 5910 to 25% 63More than 25% 31Figure : 7When the respondents asked about the proportions of income they invest in shares andsecurities, it was found that most of the (32%) respondents invest 10-25% of their income,30% of respondents invest 5-10% and 24% of them invest up to 5% and rest more than 25%.47596331No. of respondentsUp to 5%5to 10 %10 to 25%more than 25%
75 | P a g eQ4.When the respondents were asked trading frequency, the following responses wereobtained.Figure : 8On analyzing the trading practices it was found that majority, 65% of the investor‘s tradeaccording to the market 25% trade daily followed by weekly traders 7%.020406080100120140Daily Monthly Weekly According tothe market49137131No. of respondentsNo. of respondents
76 | P a g eQ5.When the respondents were asked about trading advice , the following responseswere obtained.Figure : 9Regarding the decision of amount and investment area, 98 out of 200 takes the idea ontheir own and 37 on expert‘s opinion, 35 on brokers advice, and 19 on friends advice.9837193511020406080100120On your ownideaExperts option On friendadviceBroker advice OtherNo. of respondentsNo. of respondents
77 | P a g eQ6.When the respondents asked whether any professional advice is available to themwhen required, the following responses were obtained.Figure : 10Out of 200, 108 respondents said that they don‘t and professional advice, 73 said that theyget it sometimes, and 19 of them get advice when needed.1910873No. of RespondingYesNoSometime
78 | P a g eQ7.When the respondents were asked about the motive for making investment in capitalmarket, the following responses were obtained.Calculation of weight, (Rank I=3, Rank II=2, Rank =1)Option Rank I Rank II Rank IIIRegular income in theform of dividend/interest339 54 60Tax planning 165 52 119Capital gain 360 50 55Option Rank I Rank II Rank IIIRegular income in theform of dividend/interest113 27 60Tax planning 55 26 119Capital gain 120 25 55
79 | P a g eFigure : 11On analyzing motives for investment in capital market it was found that capital gain wasthe most important factor that influences investment decisions followed by regular income andtax planning.33916536054 52 506011955050100150200250300350400Regular income in form ofdivident/ interestTax planning Capital gainRank IRank IIRank III
80 | P a g eQ8.When the Respondents were asked about the factors they consider while selecting abroker, the following responses were obtained.Option Rank I Rank II Rank IIIBrokerage 129 59 12Frequent payments &transfer of securities112 43 45Less advance margin 59 79 62Credit limits 65 46 89Personal Relations 79 24 97Calculation of Weight, (Rank I=3, Rank II=2, Rank III=1)Option Rank I Rank II Rank IIIBrokerage 387 118 12Frequent payments &transfer of securities336 86 45Less advance margin 177 158 62Credit limits 195 92 89Personal Relations 237 48 97
81 | P a g eFigure : 12050100150200250300350400Brokerage Frequentpayments &transfer ofsecuritiesLess advancemarginCredit limits PersonalRelations3873361771952371188615892481245628997Rank IRank IIRank III
82 | P a g eCHAPTER - 6BIBLIOGRAPHYBOOKS :- Kotler Philip, Marketing Management: 13thEdition, 2006, Prentice Hall ofIndia Ltd., New Delhi.MAGAZINE :- Business World News PapersWEBSITES :- www.angelbroking.com www.sharekhan.com www.icicidirect.com www.indiabulls.com www.5paisa.com www.scribd.com www.google.com