A

PROJECT REPORT

ON

“INVESTMENT OPPORTUNITIES & TREND OF INVESTMENT

AMONG
WORKING PROFESSIONALS”

FOR

SHAREKHAN LTD.

MASTER OF MANAGEMENT STUDIES (MMS)

UNIVERSITY OF MUMBAI

SUBMITTED TO
MARATHA MANDIR’S
BABASAHEB GAWDE INSTITUTE OF
MANAGEMENT STUDIES

MUMBAI CENTRAL

SUBMITTED BY

AMIT M.MAURYA

ROLL No -17

MARKETING
 DECLARATION

I, Amit M.Maurya of Master of Management Studies (Semester III) of Babasaheb Gawde

Institute of Management Studies (BGIMS), hereby declare that I have successfully completed

this project on “Investments Opportunities & Trend of Investment among Working

Professionals” as a part of my ‘Summer Internship’. The information incorporated in this project

is true and original to the best of my knowledge.

Signature

ACKNOWLEDGEMENT

1
 I here by take opportunity to thank the people who have helped me a lot during the

project work of two months. The successful accomplishment of this project, involves sincere

guidance from my Internal Project guide – Prof.T Parmar and Prof S.Kutty their excellent

guidance, encouragement and patience made possible the successful completion of project. I

would also like to thanks our director, Atul Thakurdas, for his sincere guidance, in the

accomplishment of my project. It gives me pleasure to present the project report on “Investment

Opportunities & Trend Of Investment among Working Professionals” for Sharekhan Ltd. It

was altogether a different and wonderful experience to be there in Sharekhan Securities Ltd. as a

summer trainee .

I specially want to thank my external guide Swanand Kale & Mr. Nitesh Bang who was

very cooperative with me during the entire project work. They helped me to acquire the material

regarding the information of various investment options, and helped me to understand all those.

Last but not the least I am thankful to the whole staff of Sharekhan Ltd. who directly or

indirectly helped me through out the project tenure.

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 CONTENTS

1. Acknowledgement 2

2. Executive Summary 4-6

3. Objectives of the Study 7

4. Scope of the Study 8

5. Company Profile 9-19

5.1 Introduction of the Company
9
5.2 Products & Services 13
5.3 Competitors 19

6. Theoretical Background 20-32

6.1 Consumer Behavior 20

6.2 Investing 22

7. Research Methodology 33-36

8. Data Analysis 37-49

9. Findings 50-51

10. Recommendations 52

11. Conclusion 54

3
 12. Limitations 55

13. Annexure 56-58

14. Bibliography 59

Executive Summary
This project represents information regarding various investment options available in the market

and awareness of Sharekhanas a financial service provider. The main objective of the project is

to “Study what is risk and return combination and whether the general public is aware of the

various investment options available and the risk and return associated with them”.

Other objectives include:

➢ To conduct a survey for the company to find about the awareness of various investment

options.

➢ To find out the awareness among working professional’s about the awareness of Sharekhan

as a Financial Service provider..

➢ To understand the trend of investment among the working professionals.

➢ To learn the behavior of consumers in respect of the various investment opportunities

available.

This research work will also help in future in understanding the behavior of customer

(especially the professional’s with handsome salary) toward investment. For execution of the

project, methodology adopted is the collection of data through questionnaire, processing and

analyzing the data. The people who were selectedfor this research are professionals having

good salary.

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 The area of the project work is Mumbai city. Sharekhan are the one of the personalized

service providers offering a range of investment services depending on the customer needs and

wants. As far as the brand awareness is considered the Karvy tops the list so, the companies have

to put the extra effort on its awareness, and also the company has to take maximum efforts on

building its marketing strategy.

According to the respondents the quality of the service is very important. So the company

should project itself as a brand in the market that gives end user the best quality of service with

handy operations.

Most of the respondents have their own personal, consultant or company consultants. Sharekhan

have to differentiate their services from other consultant effectively by delivering value added

services to its customers.

Organizations have to concentrate on direct marketing activities. The consultancy should develop

its long-term relationship with the customers. The consultancy must give much more emphasis

on creation of customer who make repurchase.

The maximum amount of awareness which has been generated is through newspaper, magazine,

internet and word of mouth. So the company should take care of it as it can be one of the

potential media for advertisements.

The maximum respondents want to invest in tax planning and second preference for the mutual

fund, so the consultancy can decide its strategy accordingly. The consultancy has to consider the

factors for investments of respondents, effectively before making the strategy.

The company should increase the level of interaction between the customer and the Consultancy.

The organization should focus on developing long-term relationship with the customers.

5
According to the respondents the quality of the service is very important. So the company

should project itself as a brand in the market that gives end user the best quality of service with

handy operations.

Objectives of the Study

The objective conducting this project exercise was to get useful insight about the investment

sector. I have prepared this report with some specific objective .The objectives are as under

➢ To conduct a survey for the company to find about the awareness of various investment

options.

6
➢ To find out the awareness among working professional’s about the awareness of Sharekhan

as a Financial Service provider..

➢ To understand the trend of investment among the working professionals.

➢ To learn the behavior of consumers in respect of the various investment opportunities

available.

➢ To study the risk and return combination associated with the various investment opportunities

and whether the general public is aware about them.

Scope of the Study

There is a wide scope of study on this research work. This project can be used by

different students to various investment opportunities available and way to save tax but as my

project duration was only for two months, I have restricted myself only to working professionals

working in Mumbai city .It would have been impossible for me to have an analysis of all people,

and also people of other area i.e. outside Mumbai, in just duration of two months.

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 This research work will also help in future in understanding the behavior of customer

toward investment.

Company Profile

8
9
 Sharekhan is online stock trading company of SSKI Group, provider of India-based

investment banking and corporate finance service. Sharekhan is one of the largest stock broking

houses in the country. Shri Shantilal Kantilal Ishwarlal Securities Limited (SSKI) has been

among India’s leading broking houses for more than a century.

Sharekhan Ltd is India's leading online retail broking house with its presence through

1288'Share Shops' in 398 cities. It has a client base of 1.5 Corers. Launched on 8 th February,

2000 as an online trading portal, Sharekhanoffers its clients trade execution facilities for cash

as well as derivatives, on BSE and NSE, depository services, mutual funds, initial public

offerings (IPOs), and commodities trading facilities on MCX and NCDEX. Besides high

quality investment advice from an experienced research team Sharekhan provides market

related news, stock quotes fundamental and statistical information across equity, mutual funds,

IPOs and much more. Sharekhan is also about focus. Sharekhan does not claim expertise in too

many things. Sharekhan’s expertise lies in stocks and that's what he talks about with authority. To

sum up, Sharekhan brings to you a user- friendly online trading facility, coupled with a wealth of

content that will help you stalk the right shares.

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Experience

SSKI has more than eight decades of trust and credibility in the Indian stock market. In the Asia

Money broker's poll held recently, SSKI won the 'India's best broking house for 2004' award.

Ever since it launched Sharekhan as its retail broking division in February 2000, it has been

providing institutional-level research and broking services to individual investors.

Technology

With their online trading account one can buy and sell shares in an instant from any PC with an

internet connection. Customers get access to the powerful online trading tools that will help them

to take complete control over their investment in shares.

Accessibility

Sharekhan provides services for investors. These services are accessible through many centers

across the country (Over 650 locations in 150 cities), over the Internet (through the website

www.sharekhan.com) as well as over the Voice Tool.

Knowledge

In a business where the right information at the right time can translate into direct profits,

investors get access to a wide range of information on the content-rich portal,

www.sharekhan.com. Investors will also get a useful set of knowledge-based tools that will

empower them to take informed decisions.

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Convenience

One can call Sharekhan’s Dial-N-Trade number to get investment advice and execute his/her

transactions. They have a dedicated call-center to provide this service via a Toll Free Number

1800-22-7500 & 39707500 from anywhere in India.

Customer Service

Its customer service team assist their customer for any help that they need relating to

transactions, billing, dmat and other queries. Their customer service can be contacted via a toll-

free number, email or live chat on www.sharekhan.com.

Investment Advice

Sharekhan has dedicated research teams of more than 30 people for fundamental and technical

research. Their analysts constantly track the pulse of the market and provide timely investment

advice to customer in the form of daily research emails, online chat, printed reports etc

PRODUCT & SERVICES

A Sharekhan outlet offers the following services:

• Online BSE and NSE executions (through BOLT & NEAT terminals)

• Free access to investment advice from Sharekhan’s Research team

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 • Sharekhan Value Line (a monthly publication with reviews of recommendations, stocks to

watch out for etc)

• Daily research reports and market review (High Noon & Eagle Eye)

• Pre-market Report (Morning Cups)

• Daily trading calls based on Technical Analysis

• Cool trading products (Daring Derivatives and Market Strategy)

• Personalized Advice

• Live Market Information

• Depository Services

• Derivatives Trading (Futures and Options)

• IPO’s & Mutual Funds Distribution

• Internet-based Online Trading: Speed Trade

TYPES OF PRODUCTS

• Classic Account

• Fast trade Account

• Trade Tiger

1. Classic Account

The features about classic account are-

• It is basically used for beginners i.e. Fresher

• Here the transactions can be done in BSE, NSE and F&O.

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There can be a market watch.

• Here we can make four templates i.e. folders.

• You can add 20 scrip’s in each template.

• Here you can add minimum 20 scrip and maximum 100 scrip.

• Top gainers, Top losers, Top traded equities and Top traded funds are the special links

available in this.

• It gives maximum access.

• You can keep lump sum amount in the account.

• There is a link which is- what’s in, what’s out

• A system required is Windows XP, 2000, IE 6.0.

2. Fast trade Account

The features about fast trade account are-

• We can make five templates.

• You can monitor 125 companies.

• Systems required here are Windows XP, 2000, IE 6.0 and Java.

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 • You can also buy Mutual funds and IPO online.

• You can also monitor circuits.

• You can see the market depth i.e. the logic of demand and supply. It will help to

decide whether to buy or not.

• It can also add trigger as in it works as a reminder.

• This online trading platform is an applet- based application that provides live

streaming quotes from BSE and NSE.

• Get live market prices and market statistics like best bid price, quantity, best offer

price and quantity etc. for chosen stocks.

3.Trade Tiger

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Trade Tiger is an application that brings you the power of a broker’s terminal, right from your

desktop.

• Trade on multiple exchanges {NSE, BSE, MCX, NCDEX} from a single screen.

• Customize market watches by scripts or sectors and view them on a single screen.

• Get access to technical tools and trade like a pro.

4. Invest Tiger

• This account allows you to trade through website and is suitable for retail

investors.

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 • Online trading website also comes with a Dial-n-Trade service that enables to buy

and sell shares by calling dedicated toll-free number 1-800-22-7050.

Tie ups with Banks

Sharekhan has tied up with ten banks to facilitate the transfer of money from saving account to

Dmat account and vice –versa .and by only these banks one can transfer the money by e-banking

• AXIS Bank

• Bank of India

• Citi Bank

• HDFC

• ICICI Bank

• IDBI Bank

• IndusInd Bank

• Oriental Bank of Commerce {OBC}

• Union Bank of India

• Yes Bank

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TYPES OF PLANS

Advance Brokerage – Brokerage

Brokerage Intraday -Delivery

750 10 paise 50paise/50paise

1000 9 paise 45paise/45paise

2000 7 paise 40paise/40paise

6000 5 paise 25paise/25paise

10000 4 paise 22paise/22paise

18000 4 paise 20paise/20paise

30000 3 paise 18paise/18paise

60000 2 paise 15paise/15paise

100000 1.5paise 10paise/10paise

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EXPOSURE

• In Sharekhan one can get 4 times exposure on cash and on assets one can gets 2 times.

• Sharekhan gives money only for A group and B group companies.

• Only Blue-chip companies get exposure and not for x group companies.

NOTES

• In Sharekhan account opening is free.

• First year’s maintenance charge is zero.

• Second year’s maintenance is Rs 300.

Comparison with Competitors

► Reliance:

• Here the problem is that any order you place has to be cleared by 2.30pm.

• No exposure is given here.

• There tie-ups with only two banks i.e. HDFC and IDBI.

• In Reliance per call is Rs15 extra.

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► ICICI:

• It has a huge client base.

• Here per call charge is Rs 25.

• In ICICI you can only access one company at that time.

• There tie up is only one bank that is ICICI.

• There is high brokerage for delivery is 0.75 paise and intraday is 0.25 paise.

• There is no exposure.

• Annual charges are Rs 500.

THEORETICAL BACKGROUND

CONSUMER BEHAVIOR - A THEORETICAL INPUT

"The most important thing is to forecast where customers are moving and to be in front of

them." - Kotler

The aim of marketing is to meet and satisfy target customers needs & Wants. The field of

Consumer Behavioral studies how individuals, grows, and organizations. Select, buy, use &

dispose of goods, services, ideas or experiences to satisfy their needs & desires.

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 Understanding consumer behavior and "knowing customers" is never simple .Customers

may say one thing but do another. They may not be in touch with their deeper motivations. They

may respond to influences that change their minds at the last minute.

Consumer behavior is a process and purchase is only one stage in the process. There are

many underlying influences ranging from internal motivations and attitudes to social influences

of various kinds. Yet, motivation and attitude can be understood through research. Perfect

predication is never possible, but properly designed and used research efforts can significantly

lower the risk of marketing failure.

Consumer behavior is related to an individual person (micro behavior) where as

consumption behavior relates to the mass or aggregates of individuals (macro behavior). The

study of consumer behavior always focuses on the decision process of the individual consumer

or consuming unit, such as the family. In contrast, the study of consumption behavior is

concerned with description & explanation of the behavior of aggregates of consumer or

consuming units, again at a given time or over a period of time.

Consumer Behavior Influencing Investment Pattern

Usually before investment consumers go on for a detailed study of each and every option

available to them. Often they want to go on for those options which involves less risk and that

will give more profit. Usually before investing anywhere they like to consult those to whom they

rely and those who have also invested in financial services.

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 INVESTING

An investment operation is one which, upon thorough analysis promises safety of principal and

an adequate return. Operations not meeting these requirements are Speculative

Types of Investment.

A) Fixed Return Options

B) Variable Return Options

C) Conventional returns options

A.) Fixed Return Options

i) Post Office Monthly Income Scheme

In this scheme, an investment can be made by individual in single or joint names up to a

maximum of Rs 9lakhs (Rs 4.5lakhs per person) with an interest of approximately 10.5% in a

monthly income scheme. In addition this investment will fetch you a taxable bonus of 8% on the

deposit maturity (i.e. after 6 years). Premature withdrawal is allowed after one year with a

discount of 5% on the amount deposited as a penalty and after 3 years without any discount on

the bonus. Interest qualifies for deduction under section 80L. Only individuals can open the

account (either single or joint). The post-office monthly income scheme (MIS) provides for

monthly payment of interest income to investors. It is meant for investors who want to invest a

sum amount initially and earn interest on a monthly basis for their livelihood. The MIS is not

suitable for an increase in your investment. It is meant to provide a source of regular income on a

long term basis. The scheme is, therefore, more beneficial for retired persons.

ii) Other Post Office Schemes

a) National Saving Certificate (NSC):

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National Savings Certificates (NSC) are certificates issued by Department of post,

Government of India and are available at all post office counters in the country. It is a

long term safe savings option for the investor. The scheme combines growth in money

with reductions in tax liability as per the provisions of the Income Tax Act, 1961. The

duration of a NSC scheme is 6 years. NSCs are issued in denominations of Rs 100, Rs

500, Rs 1,000, Rs 5,000 and Rs 10,000 for a maturity period of 6 years. There is no

prescribed upper limit on investment. Rs. 1000 becomes Rs. 1601 after 6 years at a

compounded yield of 8.16% with tax benefits under section 80L and 88. No premature

withdrawal is allowed. Interest accrued annually is also reinvested in this scheme and

also qualifies for up to 15/20 % rebate under section 88. There is no tax deduction at

source.

b) Kisan Vikas Patra

Kisan Vikas Patras is a safe and long term investment option backed by the Government

of India which provides interest income similar to bonds. The title of the scheme makes

some misconception that it is only meant for farmers. But anyone can go for Kisan Vikas

Patra. KVP is beneficial for those looking for a safe avenue of investment without the

pressing need for a regular source of income. Money doubles at the end of specified

period. Money can be doubled in 8 years and 7 months. There is no upper limit that you

can invest. There are no tax benefits for investments made under this scheme. The rate of

interest works out to be 8.41% (2009). Loans are available against Kisan Vikas Patra.

Interest is paid on maturity and cannot be claimed prior to maturity. This can be

purchased jointly by two adults. In the case of loss or stolen Certificate, the purchaser

should report the post office at the earliest. An application should submit in post office

containing the certificate number, amount, date of purchase /maturity etc. and declare the

23
circumstances resulting the loss of certificate. In such cases the identity slip comes useful

to get a duplicate certificate. After the verification, the post office will issue a duplicate

certificate. If needed, the purchaser will have to submit an indemnity

bond/declaration/Bank verification.

c) Senior Citizens Savings Scheme

The government has announced a new senior citizens saving scheme. It has been

launched only through designated post offices from 2nd august 2004. It is for individuals

who have attained the age of 60 years, and who have retired under voluntary retirement

scheme on the date of opening of an account. The main features of the scheme are that it

carries an interest of 9 % p.a. (taxable) on the deposit. Deposit can be a minimum of Rs.

1000 and a maximum of Rs. 15 lakhs, to be held for a period of 5 years and extendable

for a further 3 years. It can be prematurely withdrawn after one year with some

deductions. Interest qualifies for deductions. A depositor may open the account in the

individual capacity or jointly with a spouse. Non resident Indian are not eligible to open

an account. This Scheme is most beneficial to Senior citizens and provides a high rate of

interest as compared to bank interest of 4.5- 4.75%. Although the interest on the deposit

is taxable, the deposits themselves are tax free. As the post office is a department of the

government of India, it is a safe investment. The principal amount is assured.

iii) Public Provident Fund

The rate for public provident fund is currently 8% pa. This is basically a long term

investment opportunity (maturity 15 years) as entire amount that is accumulated in this

account can be withdrawn entirely only after 15 years. Part withdrawal is allowed only

after 7 years. An investor can put up to Rs 70000 per year in PPF in either lump sum or

12 monthly installments. After 15 years the investor can renew this account for a 5 year

24
period. Interest is totally exempt from income tax. The amount deposited qualifies for tax

rebate under section 88.

iv) Bank Fixed Deposits

Bank fixed deposits yields will vary from bank to bank but are more or less streamlined.

The yields are currently ranging from 4.5 % to 5.5 % per annum for deposits ranging

from 30 days to 3 years. All scheduled banks are covered under DICGC (deposit

insurance and credit Guarantee Corporation) which mean that up to Rs 1lakh deposited in

a bank every person is absolutely safe and insured even if the bank collapses. Interest

qualifies for deduction from income tax.

v) Government Securities or Gilts

Government securities or gilts are totally secure. Government bonds are issued by

government of India periodically. These are now available in the secondary market

through satellite dealers and banks. They are known to yield 5 to 6% per annum. Interest

exceeding Rs 2500 is liable for TDS at 10.455%.

vi) RBI Taxable Bonds

These are 8% bonds which are taxable. The maturity period is after 6 years and there is

no upper limit to investment in these bonds. The interest accrued on these bonds is

taxable under income tax act.

vii) Insurance

There are several types of insurance policies available in the market today through

various players. Life Insurance Corporation (LIC) till recently held monopoly in this

market. Life insurance is the most sought option as it also offers tax benefits for premier

paid. Though insurance is expenditure, it is now an investment option.

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 viii) Company Fixed Deposits

Company fixed deposits was a highly popular investment vehicle in the past. In today’s

changing scenario where the corporate world has access to cheaper funds from sources all

over the world, the rates of interest offered by good companies make this a less attractive

investment vehicle.

If company fixed deposits are unsecured deposits and if a accompany goes insolvent;

there is very little possibility of investor recovering his investments.

ix) Infrastructure Bonds

An infrastructure bond is a tax saving bond that was innovated in order to provide funds

for the development of key infrastructure projects. Thus, investors in these bonds apart

from material benefit in terms of tax savings, have the higher satisfaction of having

contributed to the development of the countries infrastructure.

B) Variable Return Options

Mutual Funds:

Through Mutual Funds. companies pools the money of many investors -- its shareholders

-- to invest in a variety of different securities. Investments may be in stocks, bonds,

money market securities or some combination of these. Those securities are

professionally managed on behalf of the shareholders, For the individual investor,

mutual funds provide the benefit of having someone else manage your investments and

diversifying your money that may not be available or affordable to you otherwise. A

mutual fund, by its very nature, is diversified -- its assets are invested in many different

securities

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ii) Shares and Stock Market

Indian Stock Market Overview.

The Bombay Stock Exchange (BSE) and the National Stock Exchange of India Ltd

(NSE) are the two primary exchanges in India. In addition, there are 22 Regional Stock

Exchanges. However, the BSE and NSE have established themselves as the two leading

exchanges and account for about 80 per cent of the equity volume traded in India. The

primary index of BSE is BSE Sensex comprising 30 stocks. NSE has (Nifty) which

consists of fifty stocks. The BSE Sensex is the oldest and more widely followed index.

Now these days even common people is being aware about the share market in respect of

4-5 years ago . before 4-5 years ago only affluent and highly educated people were aware

about share market and they used to invest in companies stock. But the time is changing

very rapidly .the people is being educated about the share market by broking firms , stock

exchange , government, news papers, news channels and by introducing various new

course in schools and colleges . now common people have started investing in

companies stocks by opening up Dmat account in various broking firms .

In this type of investment there is no certainty of return on investment one may loose his

money or can gain unexpected amount of return .

In stock market people get two type of return

1. Dividend paid by the company

2. Price rise in company’s share

These two of benefit get the stock holder only if the company is doing well and all

external environment which affects the stock market is favorable.

iii) PPM (Private Placement Memorandum)

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 A private placement memorandum (PPM) is the document that discloses everything the

investor needs to know to make an informed investment decision. This includes: the

offering structure, the share structure of the company, disclosures about the shares being

purchased, company information, information on company operations, risks involved

with the investment, management information, use of proceeds, information on certain

transactions that could affect the investor, and investor suitability data. The PPM also

includes the subscription agreement which is the actual "sales contract" for the shares of

stock. This is the document that the investor will sign and send in with their investment

funds.

The PPM is very important because it provides the investor with all of the prescribed data

they will need to make an investment decision and includes the actual documentation to

effect the investment transaction. PPM's are designed as a stand-alone document -

meaning that there need not be other information presented to the investor for them to

make an accurate investment decision. Many companies will attach their business plans

to the PPM as supporting documentation. This is an acceptable practice so long as the

information in the business plan properly corresponds with the information in the PPM

and that the investor is made aware that the business plan alone does not constitute an

offer to sell securities - only the PPM can make that offer.

C) .Conventional options

1. Property

Investment in real estate or property is a good long-term investment for well heeled

investors with a large amount of money. People used to purchase property and when they

realize that they are getting maximum return on their investment sale it off and book the

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 profit. In this type of investment there is no fix rate of return its depend on the people’s

foresight.

2. Gold and silver

In developing countries, people have often trusted gold as a better investment than stock

and bank deposits. gold and silver have always been popular in India because historically

these acted as a good hedge against inflation . in that sense these metals have been more

attractive than bank deposits or gilt –edged securities.In gold and silver there is also a

aesthetic appeal which attracts the people and they consider it as a value for money .

Buying the gold and silver people feel secure because these are the scarcest and they can cash it

any time at higher price than their original buying price.

The Investment at Glance

a) FIXED RETURN OPTION
Option & Benefit Safety Liquidity Return
Post Office – MP (8%) 10% Bonus On High Good Good
Maturity
N.S.C. (8.16% compounded). Tax High Low Moderate
benefits, No TDS
Kisan Vikas Patra (8.4%) 8yrs. 7mths. High Low Moderate
Double You’re Money. No TDS. Loan
Available From Banks against KVP
Senior Citizen Saving Scheme (9%) – High Good Moderate

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 Taxable
PPF (8%). Offers tax benefits High Low Moderate
Bank FDs (between 4.5 -5.5%) High High Low
Deposits covered by DICGC up to Rs.
1 lakh.
Government Securities, Gilts (5-6%) High Good Low
RBI Taxable Bonds (8%). The interest High Low Moderate
accrued is taxable
Insurance High Low Low
Company FD. Not a recommended Low Low Low
investment option in today’s
environment
Infrastructure Bonds High Moderat Moderate
e
b) VARIABLE RETURN OPTION

Option Safety Liquidity Return

Mutual Fund – Debt, High Varies Low
Income , Saving Funds
Mutual Fund – Equity Low Low High
Mutual Fund –Balance Moderat Good Moderate
Fund e
Share market Low Moderate High

Properties market Moderat Low Varies

e

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 Research Methodology
Following are the various definitions of marketing research:

1) According to Philip Kotler, it is a systematic design, collection, analysis, of data and

relevant to a specific marketing situation facing the company.

2) According to American Marketing Association, it is the function which links the

customer and the public to the marketer through information used to identify and define

marketing opportunities and the problems; generate, redefine action; monitor marketing

action; monitor marketing performance and improve understanding of marketing as a

process.

Marketing research process:

Marketing research is the systematic design, collection, and analysis of data and findings

relevant to a specific marketing situation facing by the company.

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Type of Research:

Descriptive research: descriptive research is chosen for this project, because this project deals

with, knowing the customer preferences for the investment and knowing customer habits relating

to financial services provided by the consultancy.

Both quantitative and qualitative approaches are used for the project, but more emphasis is given

on the qualitative approach. As we tried to know customers interested area of investment, so that

we can measure their motive

Determining The Sources Of Data Collection:

The sources of data collection were primary and secondary source. Primary data has been used

for analysis of the objective of research. As well as secondary data proved to be helping hand in

completion of the project.

Primary data: Primary data are those, which are, collected for the first time, and it is original in

character. In this research, primary data was collected by the use of questionnaires.

Secondary data: Secondary data on the other hand are those which have already been collected

by someone else and which have already been passed through the statistical process. In this

project secondary data used were, books, magazines, internet and other project reports.

Reasons for selecting the primary data:

Since the main objective of the project, knew the customer preferences for the financial

service, the best tool that can satisfy all the requirement of data was the primary data. One needs

to have the depth knowledge the customer views, and their perception and their investment

pattern. The information has been collected through questionnaire.

Thus the primary data have been proved one of the potential approaches in collection of the

information.

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Data collection methods:

Methods of data collection used for the project is:

Survey method: The tools, which have been undertaken are

1) Through email

The structured questionnaire has been undertaken to extract the desired information from

the respondents. Also both closed and open-ended questions are used to determine the

perceptions of respondent. To obtain the information, the questionnaire are mailed to the

respective respond, which result in cost reduction as well as, in a very short period we become

able to obtain the necessary information to carry out the project more effectively and efficiently

2) Personal interview:

It is direct form of investigation involving face-to-face communication with free feedback

information. It offers a sense of the participation. It is more flexible form of data collection.

Depth interview is possible, complex questions can be asked. Observational approach can be

used to verify income and the intentions of a consumer more effectively.

3) Sample Unit:

It gives the target population that will be sampled. This research has been carried only in

Mumbai city. As the sample which we have chosen are the people who are working in the IT and

software, construction and real estate , companies having handsome salary. These people are

33
always keen to invest at large extent. Also this is the sample that will consult the consultancy for

the investment decisions.

For this research, target respondents were

– IT & Software executives.

– Professionals working in the organization.

The reason for selecting this sample was these are the people who will consult the organization

for investments, as they are having the potentiality to invest huge amount of money, and which

need the proper guidance about the financial services in which they are going to invest.

Sample Universe: The universe of research was the Mumbai city.

Sample size: A total of 75 respondents were surveyed.

Area of operation: Mumbai City

Location: 1) L & T

2) T C S

3) RCF

4) Mahindra Holidays

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 DATA ANALYSIS

1) Awareness Of Financial Services

The graph above shows that awareness about Tax Planning was the highest i.e. 34%.After that

23% people were aware about Mutual funds then comes Insurance-20%.17% of the people were

about Bond’s/F.D.’s. The least awareness was found for Stock broking And PPM i.e. 3% each.

2) Awareness of Sharekhan

Our sample size was 75, and it was found that only 75% were aware about Sharekhan & 25%
are not aware of Sharekhan.

3)Awareness Of Financial Consultancies

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 Among the Financial consultancies, the highest awareness was for KARVY-17% then

comes ENAM is 16%. For Agents the percentage was highest as it was 33.33%.

4) Customer awareness From Media

In respect of the customer awareness about financial services from media, Newspaper and T.V.

were on the top most i.e. 20% each. For others, the percentage was – for Magazine-17%, for

Radio, Agents, Franchise, and reference it was 10% each. The lowest was for Hoardings i.e.3%

only.

5).Interested In Investment

Out of 75 sample unit, 67% of the people were interested in investment, and only 33% of the

people show their disinterest in investment.

6).Areas of investment

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Out of sample unit 150, the percentage of people interested in different areas was as follows:

Tax Planning-30%, Mutual Funds-27%,Insurance-20%,Bond’s/F.D.’s-13%,Stock Broking-7%

and for PPM only 3%

6(i) Factors Considered for Investment In Insurance Sector

Factors Considered For Insurance

Sector

80% 63%
60%
40% 30%
20% 7%
0%
Tax Saving Safety High Returns

63% of the people say that for the purpose of tax saving they invest in Insurance sector. Safety

was the reason given by another 30% of the people .And 7% of the people said that it gives high

return that’s why they invest in insurance sector.

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6(ii) Factors Considered For Investment In Mutual funds

Factors Considered For Mutual Fund

Investment Sector

50%
45% 43%

40%
35%
30%
30%
25%
20%
14% 13%
15%
10%
5%
0%
High Returns High Liquidity Capital Building Diversification Of
Risk

43% of the people said that Investing in Mutual Funds Gives high returns.30% of the people

gives the reason as high liquidity.14% of the people said that investing in Mutual funds helps in

capital building, while the next 13% people give the reason as diversification of risk.

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6(iii) Factors Considered for Investment for Tax Planning

Factors Considered For Tax

Planning

80% 75%

60%

40% 25%
20%
0%
Tax Saving Safety

For tax Planning 75% of the people said that it helps in tax saving, while 25% said that it is very

safe.

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6(iv) Factors Considered For Investing In Bonds

Factors Considered For Bonds

70%

60%

50%

40%

30% 58%

20% 43%

10%

0%
Tax Saving Capital Building

58% of the people said that Bonds help in Tax Saving while 43% were of the view that it helps in

building capital.

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6(v) Factors Considered For Investment In Stock Broking:

Factors Considered For Stock Broking

60% 55%

50% 45%

40%

30%

20%

10%

0%
High Returns High Liquidity

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High return was the reasons given by 55% of the people for their investment in Stock

Broking.45% people give the reason, that it gives high liquidity.

7) Reason of Unwillingness Of The People in Respect Of Investment

30% of the people said that because of the previous loss they had suffered they are not willing to

invest. Another 30% of the people said that that due to lack of knowledge they do not invest in

various options. High risk was the reason for another 23% of the people, while the rest 17%the

people said that due to lack of financial planning they do not invest.

8) Investment Pattern Of The People From Their Annual Income

From the graph following we get the following data:

Financial Services Annual income

5-10% 10-15% 15-20% 20%& above Total

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Tax planning 5 10 15 15 45

Mutual funds 10 15 10 05 40

Insurance 08 08 10 04 30

Bond’s/FD 05 10 0 05 20

Stock Broking 05 05 0 0 10

PPM 03 02 0 0 05

9)Preferable Period Of Investment:

From the survey we found that for most of the people preferable period of investment was from

Jan-Mar. The least preferable period was from Oct.-Dec.

10) Peoples Preference for Investment Through Consultancies

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Out of the total sample unit of 150, 65% of the people said that they would like to invest through

consultancies while the rest 35% of the people showed their unwillingness towards Investment.

FINDINGS
1) From the survey it was found that most of them are aware about Sharekhan as a Financial

Service Provider.

2) Among all the services, most of the people were aware about Tax Planning’s and least

awareness was for PPM and Stock Broking, so efforts should be taken accordingly.

3)As far as the brand awareness is considered the Karvy tops the list so, the companies have to

put the extra effort on its awareness, and also the company has to take maximum efforts on

building its marketing strategy.

4) According to the respondents the quality of the service is very important. So the company

should project itself as a brand in the market that gives end user the best quality of service with

handy operations.

5) Most of the respondents have their own personal, consultant or company consultants.

Sharekhan have to differentiate their services from other consultant effectively by delivering

value added services to its customers.

6) Organizations have to concentrate on direct marketing activities. The consultancy should

develop its long-term relationship with the customers.

7) The consultancy must give much more emphasis on creation of customer who make

repurchase.

8) The maximum amount of awareness which has been generated is through newspaper and TV.

So the company should take care of it as it can be one of the potential media for advertisements.

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9) The maximum respondents want to invest in tax planning and second preference for the

mutual fund, so the consultancy can decide its strategy accordingly.

10) The consultancy has to consider the factors for investments of respondents, effectively before

making the strategy.

11) From the survey I also founded that the consultancy lacked in after sales service which is

very important in today’s business.

12) Consultancy should eliminate the brand myopia as customers can jump on to their

competitors as it is a lucrative market & every player has lot of benefit to offer to the customers.

RECOMMENDATIONS
On the basis of the conclusion, there are few points on which Consultancy should make

improvements.

1) It is important for a consultancy to create awareness about its financial services more

effectively.

2) The customers are expecting frequent and timely correspondence from the consultancy

regarding their funds and the monthly market overview. Therefore the organization needs to give

more weightage on this concern.

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3) The company should increase the level of interaction between the customer and the

Consultancy.

4) The organization should focus on developing long-term relationship with the customers.

5) According to the respondents the quality of the service is very important. So the company

should project itself as a brand in the market that gives end user the best quality of service with

handy operations.

6) Sharekhan should focus on their service segment as customers are highly dissatisfied with

after sales service.

7) Sharekhan should have CRM (Customer Relationship Management) which will have a greater

impact of the company in the minds of the people.

8) As the consultancy is selling a intangible product, service plays a very important role in

enhancing the value of the brand in the market.

9) The Relationship Manager is the first leg through which the customers interact so its very

important the consultancy should have a highly efficient relationship manager so that the

customers query get answered & he or she is highly satisfied & feel good about the company.

10) Seminars should be held for providing information to prospective and present customers so

that they feel secure in investing there money in different financial products.

For e.g.: If a customer has information on derivatives he may invest in derivatives but then he

should also be informed that the derivatives are highly risky segments.

11) Sales people of the consultancy should go for training schedules periodically so that they

should be aware of different financial products which the consultancy is offering and it’s USP

(Unique Selling Proposition).

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 CONCLUSIONS
As most of the executives who were taken as our sample unit were from middle class or upper

middle class, they have a decent amount of saving. So they are willing to invest in different

options only if they are aware about the product they are getting into.

So it is important for the company, to create awareness about its financial services

more effectively. It is also necessary for the company to become customer friendly, to solve their

query and to provide information as and when required.

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 LIMITATIONS

1) The survey and research has been done only in Mumbai, therefore the results show the market
position of Mumbai only, so results cannot be considered as representatives of whole India.

2) The psychology and temperament of a respondent play a significant role. Some respondents

are more sensitive as against others who are more tolerant. A change in the composition of the

respondent can affect the answers adversely or favorably.

3) The responses of the respondent may be biased, as they were not true in answering the

questions.

4) Some respondents can be the customers of Sharekhan which can have a significant impact on

there response depending on whether they are satisfied or dissatisfied.

ANNEXURES

QUESSTIONAIRE

Name: -------------------------------------------------------------------------------

Gender : --------------------------------------------------------------------------

Age : ----------___

Marital Status; ____________________

48
Occupation: ------------------------------------------------------------------------

Company : ------------------------------------------------------------------------

Mobile no :-------------------------------------------------------------------------

Q1) Are you aware of any of the following financial services?

a) Insurance b) Mutual Funds c) Bond’s /FD’s d) Stock Broking

e) Tax Planning f) Personal Portfolio Management g) None of the above

h) Any other (Plz specify);__________________________

Q2) Are you aware of Sharekhan as Financial Service provider?

a) Yes b) No

Q3) Are you aware of any of the following Consultancy?

a) ENAM b) Morgan Stanley c) ICICI d) Karvy

e) Agents f) INDIABULLS g) Others (Specify) __________

Q4) From which of the following Media you come to know about the Financial Services?

a) Magazines b) Newspaper c) T.V. d) Radio

e) Agents f) Franchise g) Hoardings h) Friends

i) Others j) Reference

Q5) Do you invest in financial services?

a) Yes b) No

49
Q6) If yes, in which have you invested?

a) Insurance b) Mutual Funds c) Bonds /F.D d) any tax planning

e) Personal Portfolio Mgmt. F) Any other (specify)

Q7) If no, what is the reason behind not preferring to any financial services?

a) High risk b) Lack of knowledge c) Previous loss d) Lack of financial planning’s

e) Any other reason ………..

Q8)How much percentage do you invest/ would you like to invest from your annual

income?

a) Insurance— 1)5-10% 2) 10-15% 3) 15-20% 4) 20% and above

b) Mutual Funds- 1) 5-10% 2) 10-15% 3) 15-20% 4) 20% and above

c) PPM 1) 5-10% 2) 10-15% 3) 15-20% 4) 20% and above

d) Bond’s / F.D’s 1) 5-10% 2) 10-15% 3) 15-20% 4) 20% and above

e) Tax Fund’s 1) 5-10% 2) 10-15% 3) 15-20% 4) 20% and above

Q9) What are your preferable periods for investment?

a) January –March b) April – June

c) July –September d) October-December

Q10) Would you like to invest through consultancy?

a) Yes b) No

Q11) If yes, what all services would you expect from the Consultancy?

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 BIBLIOGRAPHY
A) BOOKS:

1) Philips Kotler,’Marketing Management’ Prentice Hall Of India. New Delhi, 10th edition, 2001

2) Kothari C.R. ‘Research Methodology’ Wishwa Prakashan, New Delhi, 2nd, Edition, 2001

3) Kulkarni M.V.’Marketing Research’ Everest Publishing House, Mumbai, Millinium

Edition,2001.

B)Internet:
1) http://www.icicibank.com/pfsuser/demat/demathome.htm
2) http://www.sharekhan.com/Services/
3) http://www.Equitymaster.com
4) http://www.Moneycontrol.com
5) http://www.webindia123.com/finance/post/mis.htm
6) http://nseindia.com/

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