Vertex Securities Limited is a leading financial services firm in India. It has been operating in the stock market since 1993. The company has various departments including backoffice, trading, and administration. Vertex is a member of several Indian stock and commodity exchanges. It offers investment avenues in both the stock and commodities markets. Fundamental analysis examines company financials and ratios to evaluate stocks, while technical analysis uses indicators like relative strength index and value at risk to identify trading opportunities. Gold exchange-traded funds (ETFs) allow investors to gain gold market exposure in a convenient, affordable, and secure manner compared to alternatives like jewelry and bank deposits.

1. VERTEX
SECURITIES
LIMITED
1

2. VERTEX-COMPANY PROFILE
• VERTEX is a premier brokerage house
in India on the fast growth track.
• Vertex started functioning in the stock
market in 1993.
• VERTEX Group, a leading financial and
investment service company in India.
– Vertex Securities Ltd
– Vertex Commodities &Finpro (P)Ltd.
2

3. VERTEX is a member of the National Stock
Exchange of India (NSE), the Bombay Stock
Exchange, the National Commodities
Derivatives Exchange Ltd (NCDEX), and Multi
Commodity Exchange of India (MCX).
VERTEX is a full-fledged depository
participant of the National Securities
Depository Ltd.
3

4. VARIOUS DEPARTMENTS
• BACKOFFICE DEPARTMENT
• TRADING DEPARTMENT
• ADMIN DEPARTMENT
4

5. BACKOFFICE DEAPRTMENT
• FUNDAMENTAL NEEDS TO PARTICIPATE
– DEMAT ACCOUNT
– TRADING ACCOUNT
• QUERIES REGARDING PARTICIPATING IN
STOCK EXCHANGE
• HANDLING THE ACCOUNTS OF A COMPANY
• KYC
5

6. TRADING DEPARTMENT
• ACTUAL TRADING TAKES PLACE
• TRADING – EQUITIES AND COMMODITIES
• OPTION : STOP LOSS
• ODIN CLIENT SOFTWARE
6

7. ADMIN DEPARTMENT
• Client transaction management
• Brokerage
• Client management
7

8. AVENUES OF INVESTMENT
• STOCK MARKET
FUNDAMENTAL ANALYSIS
TECHNICAL ANALYSIS
• COMMODITIES MARKET
8

9. FUNDAMENTAL
ANALYSIS
9

10. • Fundamental analysis is the technique of
applying the tenets of the firm foundation
theory to the selection of individual stocks
10

11. About company
• TCS
• HCL
• Infosys
• Tech mahindra
• Wipro
11

12. Parameters used
• EPS
• P/E ratio
• PEG ratio
• P/s ratio
• P/b Ratio
• Return on net worth
• Dividend pay-out ratio
12

13. FORMULAS
• EPS = Earnings/(No of shares)
• P/E ratio = Martketprice/(EPS)
• PEG ratio= P/E / (projected growth in earnings
• p/s ratio = Market Cap / Revenues
• P/B ratio = Marketprice/(book value)
• ReturnNetworth = Net income aftertax /(networth)
• DYR = Divident/(share price)
13

14. Compa
ny
EPS p/e
ratio
Book
value
p/b
ratio
Peg
ratio
p/s
ratio
Divide
nd
payout
ratio
(in %)
Return
on net
worth
Market
price( in
july)
TCS 102.6 24.51 224.90 11.19 1.39 5.37 1.27 48.2 2516.45
Wipro 32.8 16.35 118.98 4.50 1.18 3.08 1.31 27.6 536
Infosys 185.7 17.99 733.03 4.56 1.25 252.94 1.89 26.1 3341.3
HCL 85.44 17.74 146.09 10.37 1.28 191.22 0.79 44 1515.55
Tech
mahind
ra
111.28 19.12 365.81 5.81 1.06 2.74 0.94 42.1 2127.25
14

15. OBSERVATION
• Infosys Earnings capabilities more then Tech
mahindra and TCS.
• High P/B ratio determine the price premium
– TCS>HCL>Tech Mahindra
• ROE : TCS> HCL> Techmahindra
• Low dividend pay-out – HCL , Tech mahindra
• Industrial P/E -> 22.13
– TCS is more
– Tech Mahindra is close to
Industrial P/E
15

16. FUNDAMENTAL ANALYSIS OF
AUTOMOBILE INDUSTRY
Compay EPS p/e
ratio
Book
value
p/b
ratio
Divi
dent
payout
ratio(%
)
Return
on net
worth
Market
price( in
jul)
BAJAJ
AUTO
112.16
18.90
332.04
6.38
450%
38.51
2121.65
MARUTI
SUZUKI
INDIA
96.45
27.15
707.16
3.70 160%
12.87 2622.60
MRF 1803.95
12.99
8594.71
2.73
250%
20.02
23434.35
BOSCH 302.94
44.73
2004.62 6.74 550%
14.05 13630.45
16

17. TECHNICAL
ANALYSIS
17

18. PARAMETERS USED
• Value at Risk
• Relative Strength Index
18

19. COMPANIES
• MRF
• TIDE WATER OIL
• STRIDES AROCLAB
• LASKHMI MILL
• BOSCH
• JK BANK
• SHREE CEMENT
• GODREY PHILIP
• UB HOLDINGS
• INFOSYS
19

20. VALUE
AT
RISK
20

21. What is value at risk?
• Value-at-Risk analyses provide the risk
manager with a single measurement of the
risk faced by that institution at a particular
time.
• The Value-at-Risk is the maximum loss that
the institution is likely to face within a given
time period with (usually) a 95% probability.
21

22. Methods of calculating VaR
• Variance – covariance
• Historic
• Monte Carlo simulation
22

23. Formula
VaR(95%) = p * σ * z
P=price of the share
σ=standard deviation
Z=Z value
23

24. For example
An MRF stock is trading at Rs.23050 with a
one-year standard deviation of 20%
In the normal distribution, 95% confidence
level is 1.645standard deviations away from
the mean.
Therefore, our VaR at 95% confidence level
will be:
VaR(95%) = 23050*0.20*1.645
= 7583.45
24

25. COMPANY 12/31/2013 12/30/2013 12/27/2013 12/26/2013
MRF 245.64 244.32 246.2 241.94
TWO 99.03 98.03 101.28 103.31
STRIDES
ARCOLAB
16.32 16.5 16.38 16.71
LAKSHMI MILL 49.02 50.59 51.81 51.66
BOSCH 325.79 331.24 336.91 342.98
JK BANK 37.71 37.6 37.09 36.53
SHREE CEMENT 135.89 136.15 137.67 137.74
GODREY PHILIP 48.68 48.91 47.33 48.16
UB HOLDINGS 1.25 1.04 1.04 1.05
25

26. RELATIVE
STRENGTH
INDEX
26

27. RELATIVE STRENGTH INDEX
• It is an oscillator used to identify the inherent
technical strength and weakness of a
particular scrip or market.
• A technical momentum indicator that
compares the magnitude of recent gains to
recent losses in an attempt to determine
overbought and oversold conditions of an
asset.
27

28. • The RSI can be calculated for any number of
days depending on the wish of the technical
analyst and the time frame trading adopted in
a particular stock market.
• RSI is calculated for 5, 7, 9 and 14 days. If the
time period taken for calculation is more, the
possibility of getting wrong signals is reduced.
28

29. FORMULA
RSI=100-[100/(1+RS)]
RS=average gain per day/average loss per day
29

30. Example
DATE PRICE CHANGE
1/3/2011 7356.4 0
1/4/2011 7406.8 50.4
1/5/2011 7326.85 -79.95
1/6/2011 7179.95 -146.9
1/7/2011 7059.65 -120.3
1/10/2011 6670.5 -389.15
1/11/2011 6596.85 -73.65
1/12/2011 6684.3 87.45
1/13/2011 6675.7 -8.6
1/14/2011 6579 -96.7

31. Number of highs=2
Average of highs=137.85/2
=68.925
Number of lows=7
Average of lows=915.25/7
=130.75
RS=68.925/130.75
=0.5271

32. • RSI=100-[100/(1+0.5271)]
=34.5164

33. SERIAL NUMBER COMPANIES RELATIVE STRENGTH
INDEX
1 MRF 44.20
2 TIDE WATER OIL 42.89
3 STRIDES ARCOLAB 49.94
4 LAKSHMI MILL 48.01
5 BOSCH 42.43
6 JK BANK 48.54
7 SHREE CEMENT 44.03
8 GODREY PHILIP 41.55
9 UB HOLDINGS 48.33
10 INFOSYS 49.22
33

34. INTERPRETATIONS
• 0-30 Buy mode
• 40-70 (mean + standard deviation)
above the mean – sell mode
below the mean – buy mode
• 70-100 Sell mode
34

35. GOLD
INVESTMENTS
35

36. OBJECTIVES OF THE STUDY
PRIMARY OBJECTIVE
To analyze the performance of the GOLD-ETF in national stock exchange (NSE)
with reference to vertex securities.
SECONDARY OBJECTIVES
To find out the risk and correlation in between the gold ETF and commodity,
spot market.
To find out the best performing gold avenues in the capital market.
To find out the long (buy) and short (sell) signal of the GOLD-ETF in NSE.
To give suggestion to the investors regarding the investment of
money in GOLD-ETF.
36

37. SAMPLING DESIGN
A sample design is a definite plan for obtaining a sample from a given population. It refers to the
technique of the procedure the researcher would adopt in selecting items for the sample. Sample
design may as well lay down the number of items to be included in the sample i.e., the size of the
sample.
Sample size:
The population of the study is 5 companies which involves in issuing of Gold ETF. Sample size is
also 5.
SAMPLING METHOD
Census Sampling is the sampling method used here. When the entire population is enumerated for
sampling its known as census sampling.
PERIOD OF STUDY
The period of the study is confined from 23rd June to 22nd july 2014 (4 weeks)
SAMPLING FRAME
Gold Exchange Traded Fund.
•SBI Mutual Fund - SBI Gold Exchange Traded Scheme – Growth Option
•Kotak Mutual Fund - Gold Exchange Traded Fund
•Axis Mutual Fund - Axis Gold ETF
•Religare Mutual Fund - Religare Gold Exchange Traded Fund
•Birla sunlife exchange traded fund
37

38. DEFINITION
EXCHANGE-TRADED FUND - ETF
A security that tracks an index, a commodity or a basket of assets like an
index fund, but trades like a stock on an exchange. ETFs experience price
changes throughout the day as they are bought and sold.
Structure of ETF:
38

39. MCX
Multi Commodity Exchange of India is a de-mutualised online commodity
exchange of India promoted by Financial Technologies (I) Ltd, SBI, Fidelity
International, NSE, NABARD, HDFC Bk, SBI Life Insurance Co., Union Bank of
India, Canara Bank, Bank of India, Bank of Baroda and Corporation Bank.
Products
Bullions
Metals
energy
Oil & oil seeds
pulses
Cereals
Fibers
Plantations
others
39

40. S. No Parameter Jewellery Bank Gold ETF MCX-GOLD
1 How Gold is held
Physical (Bars /
Coins)
Physical (Bars /
Coins)
Dematerialized
(Electronic Form)
Dematerialized
(Electronic Form)
2 Pricing
Differs from one to
another. Neither
transparent nor
standard.
Differs from bank to
bank. Not Standard.
Linked to International
Gold Prices and very
transparent.
Linked to
International Gold
Prices and very
transparent.
3
Buying Premium
above gold price Likely to be more Likely to be more Likely to be less
More in case of
Physical delivery
4 Making Charges
Charges are
incurred
Charges are
incurred
No Charges are
incurred
No Charges are
incurred
5 Impurity Risk High Nil Nil Nil
6
Storage
Requirement Locker / Safe Locker / Safe Demat Account Demat Account
7 Security of Asset
Investor is
responsible
Investor is
responsible
Fund House takes the
responsibility
Fund House takes the
responsibility
8 Resale
Conditional and
uneconomical
Banks do not buy
back
At Secondary Market
Prices
Not applicable after
physical delivery
Overall comparison of means of Gold investment:
40

41. 9
Convenience in
Buying / Selling
Less convenient, as
Gold needs to be
moved physically
Less convenient, as
Gold needs to be
moved physically
More Convenient, as
held in electronic form
under the demat
account
More Convenient, as
held in electronic
form under the demat
account
10
Quantity to Buy /
Sell
Available in
standard
denomination
Available in
standard
denomination
Minimum is ½ or 1
gram according to the
fund Minimum 10 grams
11 Bid Ask Spread Very High Can’t Sell Back Very Low
12 Risk of Theft Yes, possible Yes, possible No, Not possible No, Not possible
13 Wealth Tax Yes Yes No
14
Long Term Capital
Gains Tax Only after 3 years Only after 3 years After 1 year
15 Delivery Centre Single Single Single Multiple
16 Market timings 10 AM-7AM 10 AM- 5PM 9 AM-3.30 PM 10 AM-11.55PM 41

42. Advantages of ETFs
•Tradable and Diversifiable
•Low Cost
•Transparency
•Multiple Trading Strategies
•Best during Bear markets
•Convenience
•Option Strategies
•Passively Managed
Disadvantages of ETFs
•A new Market Concept
•Large Investments
•Brokerage Charges
•Premiums and Discounts
•Costly in Certain Situations
42

43. THANK YOU!!!
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