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Marketing deriatives report

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Marketing deriatives report

  1. 1. 1 | P a g e A Project Report On Summer Training Undertaken at Karvy Stock Broking LTD Titled “Preference of Advisor towards Marketing Services” Submitted in partial fulfillment for the Award of degree of Master of Business Administration Submitted By: Submitted To:- Ms. Snehlata Kanwar Ms. Anadi Trikha MBA 3rd Sem Faculty Guide 2015-2017 Maharishi Arvind University
  2. 2. 2 | P a g e Preface The MBA programme is well structured and integrated course of business studies. The main objective of practical training at MBA level is to develop skill in student by supplement to the theoretical study of business management in general. Industrial training helps to gain real life knowledge about the industrial environment and business practices. The MBA programme provides student with a fundamental knowledge of business and organizational functions and activities, as well as an exposure to strategic thinking of management. In every professional course, training is an important factor. In colleges we get the theoretical knowledge of various subjects but we are practically exposed of such subjects when we get the training in the organization. It is only the training through which I come to know that what an industry is and how it works. I can learn about various departmental operations being performed in the industry, which would, in return, help me in the future when I will enter the practical field. Training is an integral part of MBA and each and every student has to undergo the training of 45 days in a company and then prepare a project report on the same after the completion of training. During this whole training I got a lot of experience and came to know about the management practices in real that how it differs from those of theoretical knowledge and the practically in the real life. In today’s globalize world, where cutthroat competition is prevailing in the market, theoretical knowledge is not sufficient. Beside this one need to have practical knowledge, which would help an individual in his/her carrier activities and it is true that “Experience is best teacher”.
  3. 3. 3 | P a g e Acknowledgement I take this opportunity to express my gratitude to the people who have been instrumental in the successful completion of this project. I express my sincere thanks to Mr. Hemraj Sharma Forex Advisor Karvy Stock Broking LTD Jaipur for encouraging and giving me an opportunity to be a part of the Karvy Stock Broking LTD Family as a trainee and mentoring me throughout the project. I would like to show my greatest thanks to Prof. Dr. NC Paharia Advisor Maharishi Arvind University who gave me the opportunity to work at Karvy Stock Broking LTD which helped me in understanding the importance of workplace, without his encouragement this project would not have materialized. I express my sincere thanks to my project guide Ms. Anadi Trikha Faculty Guide, for guiding me right. I sincerely acknowledge her for guidance, critical reviews of project and the report. I would also thank my Institution and the faculty members without whom this project would have been a distant reality. I also extend my heartfelt thanks to my family, friends and well wishers. Snehlata Kanwar
  4. 4. 4 | P a g e Contents Chapter Content Page No. 1 Industry Profile 5 2 Company Profile 15 3 ResearchMethodology 35 4 Data Analysis and Interpretation 39 5 Findings 40 6 SWOT 47 7 Limitation 48 8 Conclusion 50 9 RecommendationandSuggestions 51 10 Appendix 52 11 Bibliography 54
  5. 5. 5 | P a g e Industry Profile
  6. 6. 6 | P a g e SECURITIES MARKET IN INDIA Capital market is the backbone of any country’s economy. It facilitates conversion of savings to investments. Capital market can be classified as primary and secondarymarket. The fresh issue of securities takes place in primary market and trading among investors takes place in secondary market. Primary market is also known as new issue market. Equity first enter capital market though investment in primary market. In India, common investors participating in the equity primary market is massive. The number of companies offering equity though primary markets increased continuously in the postindependence period till the year 1995. After 1995, there is a continuous slump experienced by the primary market offering equity. The main reason for slump is lack of investors’ confidence in the primary market. So it is important to understand the causes and measures of revival of investors’ confidence leading to capital mobilizing and investment in right avenues creating, economic growth in the country. Globally, there are increased evidences to suggest that investor confidence has assumed an important role in the economic development of a country. The economist (1998) indicated that a lot of issues need to address to make capital markets safer. Transparency, strengthening financial system and managing crises are the issues, which cannot be quickly fixed. But they add up to a stronger system. “The Securities market is the market for equity, debt and derivatives.” The securities market has essentially 3 categories that is the issuer of securities, the investors in the securities and intermediaries. The issuers are the borrowers or deficit savers, who issue securities to raise funds. The investors, who are surplus savers, deploy their savings by subscribing to these securities. The intermediaries
  7. 7. 7 | P a g e were the agents who match the needs of the users and suppliers of funds for a commission. These intermediaries pack and unpack securities to help both the users and investors to achieve their respective goals. There are a large variety and number of intermediaries providing various services in the Indian Securities market. This process ofMobilizing of resources is carries out under the supervision and overview of regulators. The regulators develop fair market practices and regulate the conductof issuer’s securities and intermediaries. They are also in charge of protecting the interest of the investors. The regulator ensures a high service standard from the intermediaries and supply of equity securities and non manipulated demand for them in the market. EQUITY CULTURE IN THE INDIAN FINANACIAL SYSTEM The capital market services as a reliable guide to the performance and the financial position of companies and ties up companies and there by promoters efficiency. It values firms accurately and ties up manager composition to stockvalue and there by provides incentives to managers to maximize firm value. It thus helps to align the interests of the managers and there by efficient resources allocation growth. A near continuous valuation of companies as reflected in share prices and the implied possibility of mergers and takeovers are conducive to financial discipline and more efficient allocation of capital. Stockmarket promoter’s growth through the creation of liquidity. Many profitable investments require long term capital but investors are often reluctant to control over their savings for long periods. Equity market makes investment less risky,
  8. 8. 8 | P a g e more profitable and more attractive by making it more liquid. By facilitating long term and more profitable investment, liquid stockmarket improves the allocation of capital and enhances growth. Through these effects, stockmarket liquidity can lead to more savings and investment also. Historically, many investors and been made much before they become innovations. Inventions becomeinnovations and ignited industrial revolution when liquid financial market made it possible to develop projects that require large capital injections for long periods. The industrial revolution had wait the financial revolution took place. Since high projects tend to comparatively risky, stockmarket that facilitates risk diversification through international integration can encourage a shift to higher return projects and thereby help to promote growth. Large active and liquid stockmarkets induce investors to research and monitor firm and the resulting improved information improves resource allocation and accelerates growth. STOCKEXCHANGE IN INDIA The market for long term securities like bonds. Equity stockand preferred stocks are divided in two primary and secondary markets. The primary market deals with the new issues of securities. Outstanding securities are traded in the secondary market which is commonly known as stockmarket or stockexchange. In the Secondarymarket the investors can sell n buy securities. Stock markets predominantly deal in the equity share. Debt instruments like bonds and debentures are also traded in the stockmarket. Well regulated and active stockmarket
  9. 9. 9 | P a g e promotes capital formation. Growth of the primary market depends on the stock market. The health of the company reflected by the growth of the stockmarket. The origin of the stockexchange in India can be traced back to the later of the 19th century. After the American civil war (1860-61) due to the share mania of public, the number of brokers dealing in share increased. The brokers organized an informal association of brokers dealing in share increased. The brokers association” in 1975. At presently in India there are 23 stockExchanges are there and situated in various part of the country. All the stockexchanges in India are controlled by SEBI (Security Exchange Board of India). FUNCTIONS OF STOCKMARKET  Provide quotations of share/ stockfor facilitating trading and marketability.  Extend liquidity to such stockas they are easily marketable and traded.  Promotes savings and investment in the economy by attracting funds for investment incorporate shares securities.  Ensures safe and fair dealing.  Maintain active trading. NATIONAL STOCKEXCHANGE The National stockExchange (NSE) is India’s leading stockexchanges covering various cities and towns across the country. NSE was set up by leading institution to private a modern, fully automated screen -based trading system speed and efficiency. Safety and market integrity. It has set up facilities that serve as a model for the securities industry in terms of systems, practices and procedures.
  10. 10. 10 | P a g e NSE has played a catalytic role in reforming the Indian securities market in terms of microstructure, market practices and trading volumes. The market today uses state –of- art information technology to provide an efficient and transparent trading, clearing and settlement mechanism, and has witnessed several innovation in productand services viz. demutualization and electronic transfer of securities, securities lending and borrowing, professionalization of trading members, find- tuned risk management system, emergence of clearing corporations to assume counterparty risk, market of dept and derivative instruments and intensive use of information technology. The National stockExchange of India Ltd as genesis in the report the high powered study group on establishment of new stockexchange, which recommended promotion of national stockexchange, by financial institution [Fls] to provide access to investors from all across the country on an equal footing. Based on the recommendations, NSE was promoted by leading financial institution at the behalf of the GOVT of India and was incorporated November 1992 as a tax paying company unlike other stockexchange in the country. On its recognition as a stockexchange under the securities contracts (Regulations) Act, 1956 in April 1993 NSE commenced operations in the Wholesale Debt Market (WDM) segmenting JUNE 1994. The capital market (Equities) segment commenced operation in November 1994 and operations in derivatives segment commenced in June 2000.
  11. 11. 11 | P a g e The logo of the NSE symbolizes nationwide securities trading facilities equal and fair access to investors, trading number and issues all over the country. The initials of the Exchange Viz. N, S and E have been attached on the logo and a distinctly visible. The logo symbolizes connectivity to bring about the change within the securities industry. The logo symbolizes vibrancy and unleashing of creative energy to constantly bring about change through innovations. Promoters NSE has been promoted by leading financial institutions, Banks, insurance, companies and other financial intermediaries.  Industrial Development Bank of India Limited.  Industrial Finance Corporation of India Limited.  Life Insurance Corporation of India.  State Bank of India.  ICICI Bank Limited.  IL and FS Trust Company Limited.  SBI Capital Market Limited.  Bank of Baroda.  Canara Bank.  General Insurance Corporation of India.  National Insurance Company Limited.  The Oriental Insurance Company Limited.  United India Insurance Company Limited.
  12. 12. 12 | P a g e  Punjab National Bank.  Oriental Bank of Commerce.  Indian Bank  Union Bank of India.  Infrastructure Development company Limited. National stockExchange (NSE) of India became operational in the capital market segment on 3rd November 1994 in Mumbai. The genesis of the NSE lies in the recommendations of the Pertain Committee (1991). Apart from NSE, it had recommended for the establishment of National StockMarket the defects specified.  Lack of liquidity in most of the markets in term of depth and breadth.  Lack of ability to develop markets for debt.  Lack of infrastructure facilities and outdated trading system.  Lack of transparency in the operations that effect investor’s confidence.  Outdated settlement system that are inadequate to cater to the growing volumes, leading to delay. The Main Objectives of NSE As follows  To establish a nationwide trading facility for equities, debt instruments and hybrids.  To ensure equal access to investors all over the country through appropriate communication network.  To provide a fair, efficient and transparent securities market to investors using an electronic communication network.  To enable shorter settlement cycle and bookentry settlement system.  To meet current international standards of securities market.
  13. 13. 13 | P a g e Advantages of NSE Wider Accessibility The NSE ensures wider accessibility through satellite linked facility computer terminals and links with VAST helps the trades to contact their counterparts in other parts of the country quickly .The quick trading system ensures batter pricing. Screen Based Trading Originally, the basic advantage of NSE is computer based trading. The back office loads have been reduced as everything is stored in the computer. At present BSE and many other stockexchanges have introduced the computer based trading. The ring based trading is vanishing in the recent days. Non Disclosure ofthe Trading Member’s Identity While placing the orders there is no need to disclose the identity of the member on the screen. It depends upon the wish of the trading members. So without any fear of influencing the price. Any member can place size orders. Effective Settlement of Corporate Benefits All monetary benefits lodged dividend interest and redemption amount. Claims on company objections are debited/ credited directly in the clearing account of the clearing members. This reduces the problems faced by the members in settlement of corporatebenefits.
  14. 14. 14 | P a g e RECENT TRENDSIN NSE Expansion After establishing operation in Mumbai. The NSE had expanded its operation to the other cities; NSE has installed 2580 VASTS in 317 cities across the country. A break up of VSATs across 317 cities is given below. Quality:- Apart from the consolidation of the market at the national level, the transaction costalong with the bad deliveries has declined. The affective fun cottoning on National Securities Clearing Corporation Limited is another reason for it. More Liquidity:- With its online system and quick trading facilities the NSE has introduced some liquidity into the capital marker. In the last quarter of 1997, the NSE was more liquid for the 835 scraps that accounted for 97% of total trading volume. In number of trades, an indicator of the presenceof the retail investor, the NSE was ahead of the BSE. Less Brokerage:- Transparency in NSE allows the breaking up of the costs into brokerage fees, market impact costs and clearing and settlement. The brokerage fee at the BSE terminals outside Mumbai is 0.5% of the value transacted. On the NSE, it’s around 0.1% of the value transacted. Quick Clearing and Settlement NSE has introduced a full range of clearing house facilities; a pan of securities is processed atthe regional clearing centers (Delhi, Chennai and Calcutta). The inter region clearing facility provided at present, reduced that risk of the members because of not getting timely delivery of shares or loss of shares in transit. The facility is also expected to boostdelivery based trading.
  15. 15. 15 | P a g e COMPANY PROFILE
  16. 16. 16 | P a g e ABOUT KARVY The KARVY group was formed in 1983 at Hyderabad, India. Karvy ranks among the top player in almost all the field it operates. Karvy Computers shares Ltd is India’s largest Register and Transfer Agent with a client base of nearly 500 blue chips corporatemanaging over 2 core accounts. Karvy stockbrokers Ltd, member of National stockExchange of India. With over 6,00,000 active accounts, it ranks among the top 5 Depository Participated in India, registered with NSDL and CDSL karvy COM trade, Member of NCDEX and MCX ranks among the top03 commodity brokers in the country. Karvy Insurance Brokers is registered as a Broker with IRDA and ranks among the top 5 insurance agent in the country. Registered with AMFI as a corporateAgent Karvy is also among the top Mutual fund mobilize with over Rs. 5,000 cores under management. Karvy Realty Services, which started in 2006, has quick established itself as broker who adds value, in the realty sector. Karvy global offers niche off shoring services to client in the US. Karvy has 575 offices over 375 locations across India overseas at Dubai and New York. Over 9,000 high qualified people staff Karvy. Karvy – Early Days:- The birth last of Karvy was on a modestscale in 1979. It began with the vision and enterprise of a small group of practicing Chartered Accounts who founded the flagship company. Karvy started with consulting and financial accounting and carved inroads into the field of registry and share accounting by 1985. Since then, Karvy have utilized its experiences and superlative enterprise to go from.
  17. 17. 17 | P a g e Strength to Strength ….. To better its services, to provide new ones, to innovative, diversity and the process, evolved Karvy as one of India’s premise integrated financial services enterprise. GROWTH AND DEVELOPMENT OF KARVY Over the last 20 years Karvy has traveled the success route, towards building a reputation as an integrated financial services provider, offering a wide spectrum of services. And they have made the journey by taking the route of quality service. Path breaking innovation in service, versatility in service and finally totality in service. Their highly qualified manpower, cutting-edge technology, comprehensive infrastructure and total customer- focus has secured for us the position of an emerging financial services giant enjoying the confidence and supportof an enviable clientele across diverse fields in the financial world. With the experience of years of holistic financial behind us and years of complete expertise in the industry to look forward to, they have now emerged as a premier integrated financial services provider. And today, they can look with pride at the fruits of their mastery and experience Comprehensive financial services that are competently segregated to service and manage a diverse range of customer requirements. AT PRESENT STATUS OF KARVY Present Karvy is a member of National stock Exchange (NSE), the Bombay stock Exchange (BSE), and The Hyderabad stockExchange (HSE).Market analysis and market predictions are done by professional management team.
  18. 18. 18 | P a g e KARVY as covering the spectrum of financial services such as stockBroking Services, Advisory Services, Stock broking ,Depository Participants, Distribution of financial products – mutual funds, fixed deposits, equities, Insurance Broking Commodities Broking, Personal Finance Advisory Services, Merchant Banking and corporateFinance, Placement Finance, Placement of equity, IPO’s, among other. VISION OF KARVY To achieve and sustain market leadership, Karvy shall aim for complete customer satisfaction, by combining its human and technological resources to provide world class quality services. In the process Karvy shall strive to meet and exceed customer’s satisfaction and set industry standards. Their values and vision of attaining total competencein their servicing has served as the building block for creating a great financial enterprise, which stands solid on their fortresses of financial strength – their various companies. MISSION OF KARVY “Our mission is to be a leading and preferred services provider to our customers, and we aim to achieve this leadership by building an innovative, enterprising, and technology driven organization which will highest standards of services and business ethics.”
  19. 19. 19 | P a g e MILE STONES OF KARVY SERVICES PROFILE OF THE KARVY GROUP COMPANIES KARVY STOCK BOKING LIMITED Member – National StockExchange (NSE), the Bombay StockExchange (BSE), and the Hyderabad StockExchange (HSE), Karvy Stock Broking Limited, one of the cornerstones of the Kavry edifice, flows freely toward attaining diverse goals of the customer through varied services, creating a plethora of opportunities for the customer by opening up investment
  20. 20. 20 | P a g e vistas backed by research-based advisory services. Here, growth knows no limits and success recognizes no boundaries. Helping the customer create waves in his portfolio and empowering the investor completely is the ultimate goal. Why should Investors choosefor KARVY …? Excellence is next to nothing and here at Karvy everybody tries to offer excellence services to its client through its offerings maintaining the Karvy culture which included:- 1. Controlledand low costservices culture: - Karvy is there to serve its client at the minimum possible costs. 2. Longervolume processing capability:- Being the largest financial service provider in the country. It has the unique distinction of operating its activities on a large scale which benefits all the parties cordially. 3. Adherence to strict time Schedule:- Karvy knows that time is money and tries it best to finish the task within the stipulated time schedule. 4. Expertise in coordinating Multi-locationResponses:- Karvy has got a wide network and hence I can find its branches at most of the places in India. Thus it enjoys its presence everywhere and co-ordinates among itself in solving the quarries and in responding to any situation. 5. Expertise in managing independent entities such as Banks, Post-offices, etc:- The work culture of Karvy and the ethics followed inside Karvy Makes its workforce with everybody. So the Karvy personestablishes good coordination with independent entities too.
  21. 21. 21 | P a g e 6. Pooling of Group Resources:-Karvy group consists of 8 subsidiaries. So it can easily poolup its resource for accomplishment of its goals, whenever needed. The group can help each other whenever there are peaks and lows and even in the case when they have huge targets just as we saw few years’ bank, Tata group pooling its resources to acquire Corus. STOCK BROKING SERVICES It is an undisputed fact that the stockmarket is unpredictable and yet enjoys a high success rate as a wealth management and wealth accumulation option. The difference between unpredictability and safety anchor in the market is provided by in –depth knowledge of market functioning and changing trends, planning with foresight and choosing options with care. This is what they provide in their Stock Broking services. They offer services that are beyond just a medium for buying and selling stocks and shares. Instead they provide services which are multi dimensional and multi- focused in their scope. There are several advantages in utilizing their stockBroking services, which are the reasons why it is one of the best in the country. They offer trading on a vast platform; National StockExchange. Bombay Stock Exchange and Hyderabad stockExchange .More importantly, they make trading safe to the maximum possible extent, by accounting for several risk and planning accordingly. They are assisted in this takes by their in-depth research, constant feedback and sound advisory facilities. Their highly skilled research team, comprising of technical analysts as well as fundamental specialists, secure result- oriented information on market trends, market analysis and market predictions. This crucial information is given as a constant feedback to their customers, through daily reports delivered thrice daily; The Pre-session Report, where market scenario
  22. 22. 22 | P a g e for the day is predicted, The Mid- session Report, timed to arrive during lunch break, where the market forecast for the rest of the day is given and the post- session Report, the final report for the day, where the market and report itself is reviewed. To add to this repository of information, they publish a monthly magazine. “The Finapolis” which analyzed the latest stockmarket treads and takes a close look at the various investment options, and products available in the market, while a weekly report, called “Karvy Bazaar Baatein”, keeps clients more informed on the immediate trends in the stockmarket. In addition, their specific industry reports give comprehensive information on various industries. Besides this, they also offer special portfolio analysis packages that provide daily technical advice on scraps for successfulportfolio management and provide customized advisory services to help you make the right financial moves that are specifically suited to their portfolio. StockBroking services are widely networked across India, with the number of trading terminals providing retail stockbroking facilities. Its services have increasingly offered customer oriented convenience, which they provide to a spectrum of investors. High-net worth or otherwise, with equal dedication and competence. But true to their spirit, this success is not their final destination, but just a platform to launch further enhanced quality services to provide you the latest in convenient, customer-friendly stock management. Over the years Karvy have ensured that the trust of customers is their biggest returns. Factors such as their success in the Electronic custodybusiness has helped build on their tradition of trust even more. Consequentially their retail client base expanded very fast.
  23. 23. 23 | P a g e To empower the investor further they have made serious efforts to ensure that their research calls are disseminated systematically to all their stockbroking clients through various delivery channels like email, chat, SMS, phone calls etc. Their foray into commodities broking has been path breaking and they are in the process ofconverting existing traders in commodities into the more organized mainstream of trading in commodity futures, both as a trading and risk hedging mechanism. In the future, their focus will be emerging businesses and to meet this objective, they have enhanced their manpower and revitalized their knowledge base with enhances focus on Futures and Options as well as commodities business. DEPOSITORY PARTICIPANTS The onset of the technology revolution in financial service Industry saw the emergence of Karvy as an electronic custodian registered with National Securities Depository Ltd (NSDL) and central Securities Depository Ltd (CSDL) in 1998.Karvy set standards enabling further comfort to the investor by promoting paperless trading across the country and emerged as the top 3 Depository Participants in the country in terms of customer serviced. Offering a wide trading platform with a dual membership at both NSDL and CDSL, they are a powerful medium for trading and settlement of dematerialized shares. They have established live DPMs, Internet access to accounts and an easies transaction process in order to offer more convenience to individual and corporate investors. A team of process in order to offer more convenience to individual and corporateinvestors. A team of professional and the latest technological
  24. 24. 24 | P a g e enhancements like SPEED-e make their responsetime quick and their delivery impeccable, A wide national network makes their efficiencies accessible to all. ADVISIORY SERVICES Under their retail brand ‘Karvy –the finapolis’, they deliver advisory services to a cross-section of customers. The service is backed by a team of dedicated and expert professionals with varied experience and background in handling investment portfolios. They are continually engaged in designing the right investment portfolio for each customer according to individual needs and budget considerations with a comprehensive supportsystem that focuses on trading customers’ portfolios and providing valuable inputs, monitoring and managing the portfolio through varied technological initiative. This is made possible by the expertise they have gained in the business over the years. Another venture towards being investor friendly is the circulation of a monthly magazine called ‘Karvy –the Fin polis’. Covering the latest of market news, trends, and investment schemes and research-bases opinions from experts in various financial fields. MUTUAL FUNDS SERVICES Karvy has attained a position of immense strength as a provider of across the board transfer agency services to AMCs, Distributors and Investors. Nearly 40% of the top AMCs including prestigious client like Deustsche AMC and UTI swear b y the quality and range of services that karvy offers. Besides providing the entire bank office processing Karvy provides the link between various Mutual Funds and the investors including services to the distributor, the prime channel in this operation. Carrying the limitless ideology forward. Karvy has explored new dimensions in every aspectof Mutual Fund Servicing right from volume management, cost effective pricing, and delivery in the least turnaround time, efficient back office and front office operations to customize services. Karvy has explored new
  25. 25. 25 | P a g e dimensions in every aspectof Mutual fund servicing right from volume management, costeffective pricing, and delivery in the least turnaround time, efficient back office and front office operations to customize services. Karvy has been with the AMCs every step of the way, helping them serve their investors better by offering them a diverse and customized range of services. The first to market approachthat is Karvy’s Service enhancements such as Karvy Covers, a full-fledged call center, top-line website (www.Karvymfs.com), the investors and many more, creating a of galaxy of customer advantages. KARVY CONSULTANCY LIMITED As the flagship company of the Karvy Consultants limited has always remained at the helm of organizational affairs, pioneering business policies, work ethic and channels of progress. Having emerged as a leader in the registry business, the first of the businesses that they ventured into, they have now transferred this business into a joint venture with Computer share Limited of Australia, The world’s largest registrar. With the advent of depositories in the Indian capital marked and the relationships they have created in the registry business, they believe they were best positioned to venture into this activity as a Depository Participant. They were one of the early entrants registered as Depository in the country and then with CDST (Central Depository Services Limited). Today, they service over 6 lakhs customer accounts in this business spread across over 250 cities/towns in India and are ranked amongst the largest Depository Participants in the country. With a growing secondarymarket presence, they have transferred this business to Karvy stockBroking Limited (KSBL), their associate and a member of NSE, BSE and HSE.
  26. 26. 26 | P a g e KARVY INVESTOR SERVICE LIMITED Merchant Banking Recognized as a leading merchant banker in the country, they are registered with SEBI as a category I merchant banker. This reputation was built by capitalizing on opportunities, which have earned us the reputation of a merchant banker. Raising theories for corporateor Government Undertaking successfully over the past two decades have given us the confidence to renew their focus in this sector. Their quality professional team and their work-oriented dedication have propelled us to offer value-added corporate financial services and act as a professional navigator for long term growth of their clients, who include leading corporate, State Governments, foreign institutional investors, public and sectorcompanies and banks, in Indian and global markets. They have also emerged as a trailblazer in the arena of relationships, both at the customer and trade levels because of their unshakable integrity, seamless service and innovative solutions that are tuned to meet varied needs. Their team of committed industry specialists, having extensive experience in capital markets, further nurtures this relationship. Their financial advice and assistance in restructuring, divestitures, acquisitions, de- mergers, spin-offs, joint ventures, privatization and takeover defense mechanisms have elevated their relationship their relationship with the client to one based on unshakable trust and confidence.
  27. 27. 27 | P a g e KARVY GIOBAL SERVIVES LIMITED The specialist Business Process ofthe Karvy Group. The legacy of experience in financial services of the Karvy Group Serves us well as they enter the global arena with the confidence of being able to deliver well. Here they offer several delivery models on the understanding that business needs are unique and therefore only a customized service could possibly fit the bill. Their service matrix has permutations and combinations that create several options to choosefrom. Be it in re-engineering and managing processesordelivering new efficiencies, their service meets up to the most stringent of international standards. Their outsourcing models are designed for the global customer and are backed by sound corporateand operations philosophies, and domain expertise. Providing productivity improvements operational costcontrol, costsavings, improved accountability and a whole gamut of other advantages. They operate in the core market segments that have emerging requirements for specialized services. Their wide vertical market coverage includes Banking, Financial and Insurance Services (BFIS), Retail and Merchandising, Leisure and Entertainment, Energy and Utility and Healthcare. KARVY INSURANCE BROKING PRIVATE LIMITED At Karvy Insurance Broking Pvt. Ltd., they provide bothlife and non-life insurance products to retail individuals, high net –worth clients and corporate. With the opening up of the insurance sectorand with a large number of private players in the business, they are in a position to provide tailor made policies for different segments of customers. Its heir journey to emerge as a personal finance
  28. 28. 28 | P a g e advisor, they will be better positioned to leverage their relationships with the productproviders and place the requirements of their customers appropriately with the productproviders. With Indian markets seeing a sea change, bout in terms of investment pattern and attitude of investors, insurance is no more seen as only a tax saving productbut also as an investment productBy setting up a separate entity, they would be positioned to provide the best of the products available in this business to their customers. Their wide national network, spanning the length and breadth of India, further supports these advantages. Further, personalized service is provided here by a dedicated team committed in giving hassle- free service to the clients. KARVY COMMODITIES BROKING PRIVATE LIMITED Commodities market, contrary to the belief of many people, has been in existence in India through the ages. However the recent attempt by the Government to permit Multi-commodity National levels exchanges has indeed given it, a shot in the arm. As a result two exchanges Multi Commodity Exchange (MCX) and National Commodity and derivatives Exchange (NCDEX) have come into being. These exchanges, by virtue of their high profile promoters and stakeholders, bundle in themselves, online trading facilities, robust surveillance measures and a hassle-free settlement system. The future contracts available on a wide spectrum of commodities like Gold, Silver, Cotton, Steel, Soya beans, Wheat, Sugar, Channa etc., provide excellent opportunities for hedging the risks of the farmers, importers, exporters, trades and large scale consumers, they also make open an avenue for quality investments in precious metals. The commodities market, as it is not affected by the movement of the stockmarket or debtmarket provides tremendous opportunities for better diversification of risk. Realizing this fact, event mutual funds are contemplating of entering into this market.
  29. 29. 29 | P a g e Karvy COM trade Limited is another venture of the prestigious Karvy group. With their well established presence in the multifarious facets of the modern financial services industry from stockbroking to registry services, it is indeed a pleasure for us to make foray into the commodities derivatives market which opens yet another doorfor us to deliver their service to their beloved customers and investor public at large. With the high quality infrastructure already in place and a committed Government providing continuous impetus, it is the responsibility of us, the intermediaries to deliver these benefits at the door-stepsoftheir esteemed customers. With their expertise in financial services, existence across the lengths and breadths of the country and an enviable technological edge, they are all set to bring to you, the pleasure of investing in this burgeoning market, which can touch upon the lives of a vast majority of the population from the farmer to the corporatealike. They are confident that the commodity futures can be a good value addition to their portfolio. The company provides investment, advisory and brokerage services in Indian commodities Markets. And most importantly, they offer a wide reach through their branch network of over 255 branches located across 180 cities. KARVY COMPUTERSHARE PRIVATE LIMITED KARVY have traversed wide spaces to tie up with the world’s largest transfer agent, the leading Australian company, Computershare Limited. The Company that services more than 75 million shareholders across 7000 corporateclients and makes its presence felt in over 12 countries across 5 continents has entered into a 50-50 joint venture with us.
  30. 30. 30 | P a g e With its management team completely transferred to this new entity, they will aim to enrich the financial services industry than before. The future holds new arenas of client servicing and contemporary and relevant technologies as they are geared to deliver better value and foster bigger investments in the business. The worldwide network of Computershare will hold us in good as they expect to adopt international standards in addition to leveraging the of bestof technologies from around the world. Excellence has to be the order of the day when two companies with such similar ideologies of growth, vision and competence, get together. ISSUE REGISTRY Karvy towards becoming the largest transaction-processing house in the Indian Corporatesegment, they have mobilized fund for numerous corporatesector. With an experience of handling over 700 issues, Karvy today, has the ability to execute Voluminous transactions and hard-core expertise in technology applications have gained us the No.1 slot in the business. Karvy is the first Registry Company to receive ISO 9002 certification in India that stands testimony to its stature. Karvy has the backing of skilled human esthetic complemented by requisite technological packages to ensure a faster processing capability. Karvy has the benefit of a good synergy between depositories and registry that enables faster resolution to related customer queries. Apart from its unique investor servicing presence in all the phases of related customer queries. Apart from its unique investor servicing presence in all the phases of a public Issue, it is actively coordinating with both the main depositories to develop special model to enable the customer to access depository(NSDL, CDSL) Services during an IPO.
  31. 31. 31 | P a g e Their trust-worthy reputation, competent manpower and high-end technology and infrastructure are the solid foundations on which their success is built. HR POLICY OF KARVY Karvy’s HR Department is located at Hyderabad. Recruitment and SelectionPolicy: The upper level members like zonal managers, regional managers, branch managers and senior executives are recruited by publishing recruitment advertisement in leading national level newspaper. The qualified applicant are then called for interview and selected. The regional manager has authority to select lower level employee like peon, marketing executives, accountant etc. by approval of zonal manager. Training and Development: Continuous training and upgrading technical, behavioral and managerial skills is a way of life in Karvy. Karvy encourages employees to hone their skills regularly to enable them to face the challenges of the changing requirements of customers that fit market up and down. Training needs analysis is done on a regular basis and systematic methodologies are ensured that skills and capabilities of all employees are constantly upgraded to enable them to perform in the challenging work environment. New employee has given training under experienced employee. The new employee work under experience employee and observe his all activities. When company employs new technology or there is any change in the working of company the training program is arranged.
  32. 32. 32 | P a g e Employee Motivation: Karvy’s employees are highly empowered. They don’thave to report any personof the same branch but they report upper level branch. E.g. Marketing executive of Jamnagar branch directly reports Senior Marketing executive of Baroda zonal office. If particular branch earn certain profit then Karvy gives them special incentives. E.g. last year Karvy had arranged two days tour of Div for their employees of Rajkot, Jamnagar, Junagadh and Bhavnagar branch which was totally free of cost. This also helps in maintaining co-operation between employees. Quality PolicyOf Karvy: To achieve and retain leadership, Karvy shall aim for complete customer satisfaction, by combining its human and technological resources, to provide superior quality financial services. In the process,Karvy will strive to exceed Customer’s expectations. Quality Objectives of Karvy Build in-house processes that will ensure transparent and harmonious relationships with its clients and investors to provide high quality of services. Establish a partner relationship with its investor service agents and vendors that will help in keeping up its commitments to the customers. Provide high quality of work life for all its employees and equip them with adequate knowledge & skills so as to respond to customer's needs. Continue to uphold the values of honesty & integrity and strive to establish unparalleled standards in business ethics.
  33. 33. 33 | P a g e Use state-of-the art information technology in developing new and innovative financial products and services to meet the changing needs of investors and clients. Strive to be a reliable source of value-added financial products and services and constantly guide the individuals and institutions in making a judicious choice of same. Strive to keep all stake-holders (shareholders, clients, investors, employees, suppliers and regulatory authorities) proud and satisfied. INDUSTRYDETAILS Sr. No. Mutual Fund Name No. of Schemes 1 Alliance Mutual Fund 36 2 Benchmark Mutual Fund 5 3 Birla Mutual Fund 74 4 Bank of Baroda Mutual Fund 17 5 Can Bank Mutual Fund 25 6 Chola Mutual Fund 45 7 Deutsche Mutual Fund 40 8 DSP Merrill Lynch Mutual Fund 40 9 Escorts Mutual Fund 15 10 Franklin Templeton Investments 130 11 GIC Mutual Fund 5
  34. 34. 34 | P a g e 12 HDFC Mutual Fund 79 13 HSBC Mutual Fund 32 14 IL & FS Mutual Fund 43 15 ING Vysya Mutual Fund 55 16 JM Mutual Fund 55 17 Kotak Mutual Fund 56 18 LIC Mutual Fund 35 19 Morgan Stanley Mutual Fund 1 20 Punjab National Bank Mutual Fund 4 21 Prudential ICICI Mutual Fund 124 22 Principal Mutual Fund 68 23 Reliance Mutual Fund 74 24 Sahara Mutual Fund 12 25 State Bank of India Mutual Fund 59 26 Standard Chartered Mutual Fund 100 27 Sundaram Mutual Fund 52 28 SUN F&C Mutual Fund 1 29 Tata TD Mutual Fund 100 30 Taurus Mutual Fund 9 31 Unit Trust of India 42
  35. 35. 35 | P a g e RESEARCH METHODOLOGY
  36. 36. 36 | P a g e Research Design A research design is a pattern or an outline of a research project’s working. It is a statement of only the essential elements of a study, those that provide the basic guidelines for the details of the project. It comprises a series of prior decision that taken together provide master plans for executing a research projects. A research design serves as a bridge between what has been established i.e., the research objectives and what is to be done, in conductof the study to relish those objectives. If there were no research design, the research would have only foggy notions as about what is to be done. I have used ‘Cross-SectionalResearch’ of ‘Exploratory Research ’. The research is of both qualitative as well as quantitative type. Unit of Analysis Mutual Fund Advisors. Characteristics of interest: .Advisor’s knowledge about Mutual Fund .Advisor’s knowledge about Karvy .Advisor’s interest in getting knowledge of Mutual Fund .Advisor’s willingness to deal in Mutual Fund with Karvy .Advisor’s preference in selecting tax saving instrument of investment .Advisor’s preference in selecting dealer
  37. 37. 37 | P a g e Sources of Data Primary Source The primary data is collected using sampling method and by survey using questionnaire. SecondarySource Secondarydata includes information regarding present market scenario, Information regarding Mutual Funds and competitors are collected by Internet, Magazines and News papers and books. Sample Planning Sample Size: 50 units Sample Extent: Jaipur City Sampling Design A Sample Design is a definite plan for obtaining a sample from a given population. It refers to the technique or method the researcher would adoptin selecting items for the sample. I have used both ‘Convenience Sampling Method’
  38. 38. 38 | P a g e Data Collection Method I have used ‘Survey Method’ to collect data. I have collected data using questionnaire. Questionnaire Plan I have used ‘Structured Questionnaire’ for gathering the required data through contacting respondent personally. Type of Information: I have collected Fact, Awareness, Attitude, Future action plan and reason using questionnaire. Type of Questions: ‘Close-ended questions’ or ‘Dichotomous’ and ‘Multiple Choice’ type are asked in the questionnaire for data collection. Data Analysis & Interpretation Data Analysis is based on the data collected by way of Questionnaires. From the collected data findings are extracted. The data is tabulated and frequency distribution chart is prepared.
  39. 39. 39 | P a g e DATA ANALYSIS AND INTERPRETATION Table 1. showing income level of respondent. Interpretation The affordability to investdepends on the income of people. As income depicts the status of the people to investin different avenues based on their income many investors fallin the income level between 5000-10000 theregister 50000-10000 10000-15000 15000-20000 20000-25000 Income No. Of respondents Percentage 5000-10000 21 42 10000-15000 13 26 15000-20000 11 22 20000-25000 5 10 Total 50 100
  40. 40. 40 | P a g e for 42% the income level 10000-15000 are26% theincome level between 15000- 20000 thehigh income level above 20000 accounting for 10%. Table 2 showingthe investors investing different avenues. Interpretation:- The above table depict that 34% of respondents prefer to invest in bank depositdue to safety 20% shares 16% in bank fixed deposit, 14% in chit funds, 12% in mutual funds and 4% in debentures. bank deposit mutual fund shares debentures bank fixed deposit chit funds Avenues No. Of respondents Percentage Bank deposits 17 34 Mutualfunds 6 12 Shares 10 20 Debentures 2 4 Bank fixed Deposits 8 16 Chit funds 7 14 Total 50 100
  41. 41. 41 | P a g e Table 3 showingthe regular investors . Interpretation:- The above table that around 52% of the respondents invest regularly and 48% investoccasionally. yes no Pattern No. Of respondents Percentage Yes 26 52 No 24 48 total 50 100
  42. 42. 42 | P a g e Table 4 showingthe regular investors . Interpretation:- The above table shows thataround 62% the respondents prefer for long-term investment and 38% for short-terminvestment. Table 5 showingsource of information. Sales short term long term Invest Pattern No. Of respondents Percentage Short - term 19 38 Long – term 31 62 Total 50 100
  43. 43. 43 | P a g e Interpretation:- Sourceof information plays a key role in investing in a particular avenue the above table shows thatshows that74% of the respondents have invested by their own experience, 18% of the respondents invested by the experts/professionaland 8% of the respondents invested by the guidance given by existing investors. Table 6 showingthe factors influencing investment. experts/professional own experience existing investores Source if information No. Of respondents Percentage Expert/professional 9 18 Own experience 37 74 Existing investors 4 8 Total 50 100 Factors No. Of respondents Percentage
  44. 44. 44 | P a g e Interpretation:- The above table shows thatmost of the investors about38% invest for the purposeof safety followed by 24% convenienceand income and restfor rate of interest/preference and tax benefits that 8% and 6% respectively. Table 7 showingthe investment in mutual funds. convenience safety income rate of interest/preference tax benfits Convenience 12 24 Safety 19 38 Income 12 24 Rate of interest/preference 4 8 Tax benefits 3 6 Total 50 100 Investment in mutual funds No. Of respondents Percentage
  45. 45. 45 | P a g e Interpretation:- The above table depict that 88% of the respondents arenot satisfied with the returns on mutual fund and only 12% of the respondents aresatisfied with return on mutual funds. Table 8 showing overall performanceof mutual funds. Sales yes no Yes 6 12 No 44 88 total 50 100 Attributes No. Of respondents Percentage Very good 2 4 Good 20 40
  46. 46. 46 | P a g e Interpretation:- The above table depicts that the performanceof the mutual funds is average to 56% of the respondents, good to 40% of the respondents and very good to only 4% of the respondents. very good good average Average 28 56 Total 50 100
  47. 47. 47 | P a g e FINDINGS After getting in depth research study of Karvy, I came to know that Karvy is not much popular as other brands operating in Jaipur city. Bajaj Allianz, HDFC, ICICI are having much higher tapped market in respectto mutual funds. Karvy as an investment option in Mutual Fund does not possessmuch proficiency and potential customers in Jaipur city. Though the financial advisors advise their clients to go for Mutual Fund as a investment option. About 42% of advisors advise their clients to invest in Mutual Funds, followed by investing in Insurance sector. The advisors after having a deep thought says that it is the Returns that make them convince their clients to go for investment in mutual funds. 36% of advisors said that it is the Returns which make a person to invest in Mutual Fund. Followed by Risk which is quite lesser in other investment options. A huge lot of advisors showed a positive responsein dealing of for Mutual Fund. About 60% of them said that they are interested in dealing for Mutual Funds, because that results in higher brokerage. As far as Karvy is concerned about 91% of the advisors said that they are not aware of the services provided by Karvy, including Mutual Fund. When asked, 53% of advisors said that they are not interested to work with Karvy Securities, to the contrary with they don’thave any such expansion plans and they have little knowledge about Karvy. Jaipur city advisors don’thave an appropriate knowledge about Karvy as a Investment hub.
  48. 48. 48 | P a g e SWOT ANALYSIS OF KARVY Strengths: Employees are highly empowered. Strong Communication Network. Good co-operation between employees. Number 1 Registrar and Transfer agent in India. Number 1 dealer of InvestmentProducts in India. Weaknesses: High Employee Turnover. Opportunity: Growth rate of mutual fund industry is 40 to 50% during last year and it expected that this rate will be maintained in future also. Marketing at ruraland semi-urban areas. Threats: Increasing number of local players. Pastimage of Mutual Fund.
  49. 49. 49 | P a g e LIMITATIONS Due to limitation of time and cost constrains a sample sizeof only 50 respondents were chosen. Data Analysis and interpretation done may not be that strong due to small sample and ‘ConvenienceSampling Method’. The sample extent for research is only Jaipur City. Some of the respondents may be biased in giving responses. My inexperience in research area might have affected results. CONCLUSION Mutual Fund Advisors giveemphasis on mutual funds than other investment options. Mutual Funds have given a new direction to the flow of personalsaving and enable small and medium investors in remote ruraland semi urban areas to reap the benefits of the stock market investment. Indian Mutual Funds are thus playing a very important developmental role in allocation of scares resources in the emerging economy. Karvy is not able to providesufficient services to the investors due to unawareness among advisors regarding services. The awareness level of investor is low in advisors areinterested in dealing in mutual fund. Very less advisors know aboutservices provided by Karvy.
  50. 50. 50 | P a g e RECOMMENDATIONS There is high potential market for Mutual Fund Advisors in Jaipur city, but this market needs to be explored as investors arestill hesitated to invest their money in Mutual Funds. In Jaipur investors haveinadequate knowledgeabout Mutual Funds, So proper Marketing of various schemes is required, company should arranges moreand more seminars on Mutual Funds. Awareness of MF services provided by Karvy is also very low so company needs proper marketing of their all services by advertising, distribution of pamphlet, arranging seminars etc. Most of advisors arenot interested in dealing of Mutual Funds becausethey don’t want to expand their services due to lack of time, so company should provide them knowledgeabout single window services by which investor can get all financial services fromone place. Company should also provideknowledgeabout the growth rate and the expected growth rate of Mutual Fund industry in India. Most of people awareof life insurance, NSCand PPF for tax saving so, company should market various tax saving schemes of Mutual Funds and their benefits. The interface among the investors and the Mutual Fund Companies is the agents, so the agents should haveproper knowledge aboutMutual Funds as well as market so that they can help investors in their investment decisions. The quality of agents performanceand investors truston them can be improved only if they are permanent in nature.
  51. 51. 51 | P a g e Appendix We assureyou that all the information that will be collected from you will remain fully confidential and it is used for study purposeonly. 1. As a financial investment adviser whichinvestmentoptions yousuggest to your customers? Shares Mutual Fund InsuranceFixed Deposit Tax Bond PPF 2. Please indicate reasonfor choosing above. Returns Risk Safety Tax Benefits Timely Brokerage 3. Approximately howmany customers youhave? 4. What is the brokerage Payment Period? 5. ExpectedBrokerage Payment Period? 6. If a service personwhopays Income Tax wants toinvest, generally which optiondo you suggest for investment? Insurance Mutual Funds PPF Tax Bond Fixed Deposits
  52. 52. 52 | P a g e 8. Are youinterestedtodeal inMF? Yes No If No Why? 9. Do you know about MF services providedby Karvy’s Jaipur Branch? Yes No 10. In future will you attendseminar arrangedby Karvy to guide investors about MF? Yes No 11. Would you like to work with Karvy Securities Ltdfor dealing inmutual fund? Yes No 11.1 If no, thenthe reasonwould be: Not answered No time Lack of knowledge No expansion plans Name: Address :
  53. 53. 53 | P a g e GLOSSARY Corporate advisory services Merchant bankers offer customized solutions to solvethe financial problems of their clients. Merchant bankers study the working capital practices that exist within the company and suggestalternative policies. They also advisethe company on rehabilitation and turnaround strategies. Loan syndication Arrangementof loans for clients, by analyzing their cash flow pattern, so that the terms of borrowing meet the client’s cash requirements and offer assistancein loan documentation procedures. Portfolio Total number of all holdings held by a company is called portfolio. The portfolio mix is aimed at spreading the risk over different sectors. Itconsists of all assets of company. NAV Net AssetValue is the currentmarket worth of the mutual fund shares. Itis calculated daily by taking the funds total assetsecurities, cash and any accrued earning deducting liabilities, and dividing the reminder by the number of shares outstanding. Depository The principal function of a depository is to de-materialize securities and enable their transactions in book-entry form. A depository established under the Depositories Act can provideany service connected with recording of allotment of securities or transfer of ownership of securities in the record of a depository. Capital gain the profit made fromselling shares, mutualfunds etc.
  54. 54. 54 | P a g e BIBILIOGRAPHY
  55. 55. 55 | P a g e Books Referred:  Philip Kotler, Jha, and Koshy: “Marketing management”.  Roger. A. Kerin, Steven. W. Hartley, Eric. N. Berkowit, William Redlius: “Marketing Management”. Websites Referred:  www.wikipedia.com  www.karvyonline.com  www.google.com

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