SUMMER PROJECT REPORT

On
“INVESTMENT SERVICES AND
INVESTMENT PROCESS OF UNICON
INVESTMENT SOLUTION”
At

Under the guidance of

Mr. MADURIYA MALIK Dr.
SHARAT SHARMA
Sales Manager Faculty,
Management
SRM-IST,
Modinagar
SUBMITTED BY:

AZHAR HUSSAIN KHAN

Reg. No. - 35084027
(M.B.A. 2008-2010)

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SRM – INSTITUTE OF SCIENCE AND
TECHNOLOGY, MODINAGAR

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 STUDENT DECLARATION

I AZHAR HUSSAIN KHAN student of MBA here by declared that the research

report entitled ‘INVESTMENT SERVICES AND INVESTMENT PROCESS

OF UNICON INVESTMENT SOLUTION’ is completed and submitted under

the guidance of Mr.Tarun Kumar (Sr.Relationship Manager) is my original

work. The imperial finding in this report is based on the data collected by me. I

have not submitted this project report to SRM-IST or any other University for the

purpose of compliance of any requirement of any examination or degree.

DATE: AZHAR HUSSAIN KHAN

PLACE: MBA III SEM

ROLL NO. 35084027

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 ACKNOWLEDGEMENT

At the very beginning, I wish to render my deep sense of gratitude with special

thanks and due regard to Mr. TARUN KUMAR (Sr. Relationship Manager,

Unicon Investment Solution) whom I required the privilege of working. His

invaluable guidance and thoughtful consideration had been the key motivating

factor throughout my project, which enabled me to complete my project so

efficiently and effectively.

I wish to express my respectable thanks and gratitude to Dr. SHARAT SHARMA

(Faculty of M.B.A.) theoretical knowledge about the subject.

I feel immense pleasure to offer my thanks to faculty members, who co-operated in

analysis of data and helped me to understand some behavioral aspects of

consumers. I am very thankful to my friends who directly and indirectly helped me

in collection of data and material related to the research topic.

AZHAR HUSSAIN KHAN

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Chapter – 1

1. Executive

Chapter – 2
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Chapter – 7

1. Questionnaire 85

2. Bibliography 88

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 EXECUTIVE SUMMARY

To get initial success in this field is very difficult. Although the business

generation becomes easier with time as they serve more people who then get added

up in the loyal clientage. Thus time and service are two most factors to get in this

field.

Also the corporate remains a very important segment which gets business in bulk

but retail cannot be ignored which makes your business ticking.

Customer remains in the pivotal position.

The financial sector is in a process of rapid transformation. Reforms are continuing

as part of the overall structural reforms aimed at improving the productivity and

efficiency of the economy. The role of an integrated financial infrastructure is to

stimulate and sustain economic growth.

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 FINANCIAL SECTOR

The financial sector is in a process of rapid transformation. Reforms are continuing

as part of the overall structural reforms aimed at improving the productivity and

efficiency of the economy. The role of an integrated financial infrastructure is to

stimulate and sustain economic growth.

The US$ 28 billion Indian financial sector has grown at around 15 per cent and has

displayed stability for the last several years, even when other markets in the Asian

region were facing a crisis. This stability was ensured through the resilience that

has been built into the system over time. The financial sector has kept pace with

the growing needs of corporate and other borrowers. Banks, capital market

participants and insurers have developed a wide range of products and services to

suit varied customer requirements. The Reserve Bank of India (RBI) has

successfully introduced a regime where interest rates are more in line with market

forces.

Financial institutions have combated the reduction in interest rates and pressure on

their margins by constantly innovating and targeting attractive consumer segments.

Banks and trade financiers have also played an important role in promoting foreign

trade of the country.

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Banks

The Indian banking system has a large geographic and functional coverage.

Presently the total asset size of the Indian banking sector is US$ 270 billion while

the total deposits amount to US$ 220 billion with a branch network exceeding

66,000 branches across the country. Revenues of the banking sector have grown at

6 per cent CAGR over the past few years to reach a size of US$ 15 billion. While

commercial banks cater to short and medium term financing requirements, national

level and state level financial institutions meet longer-term requirements. This

distinction is getting blurred with commercial banks extending project finance. The

total disbursements of the financial institutions in 2001 were US$ 14 billion.

Banking today has transformed into a technology intensive and customer friendly

model with a focus on convenience. The sector is set to witness the emergence of

financial supermarkets in the form of universal banks providing a suite of services

from retail to corporate banking and industrial lending to investment banking.

While corporate banking is clearly the largest segment, personal financial services

is the highest growth segment.

The recent favourable government policies for enhancing limits of foreign

investments to 49 per cent among other key initiatives have encouraged such

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activity. Larger banks will be able to mobilise sufficient capital to finance asset

expansion and fund investments in technology.

Capital Market

The Indian capital markets have witnessed a transformation over the last decade.

India is now placed among the mature markets of the world. Key progressive

initiatives in recent years include:

• The depository and share dematerialisation systems that have enhanced the

efficiency of the transaction cycle

• Replacing the flexible, but often exploited, forward trading mechanism with

rolling settlement, to bring about transparency

• The infotech-driven National Stock Exchange (NSE) with a national presence

(for the benefit of investors across locations) and other initiatives to enhance the

quality of financial disclosures.

• Corporatisation of stock exchanges.

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• The Securities and Exchange Board of India (SEBI) has effectively been

functioning as an independent regulator with statutory powers.

• Indian capital markets have rewarded Foreign Institutional Investors (FIIs) with

attractive valuations and increasing returns.

• The Mumbai Stock Exchange continues to be the premier exchange in the

country with an increase in market capitalisation from US$ 40 billion in 1990-1991

to US$ 203 billion in 1999-2000. The stock exchange has about 6,000 listed

companies and an average daily volume of about a billion dollars

• Many new instruments have been introduced in the markets, including index

futures, index options, derivatives and options and futures in select stocks.

Insurance

With the opening of the market, foreign and private Indian players are keen to

convert untapped market potential into opportunities by providing tailor-made

products:

• The presence of a host of new players in the sector has resulted in a shift in

approach and the launch of innovative products, services and value-added benefits.

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Foreign majors have entered the country and announced joint ventures in both life

and non-life areas. Major foreign players include New York Life, Aviva, Tokio

Marine, Allianz, Standard Life, Lombard General, AIG, AMP and Sun Life among

others.

• With competition, the erstwhile state sector companies have become aggressive

in terms of product offerings, marketing and distribution.

• The Insurance Regulatory and Development Authority (IRDA) has played a

proactive role as a regulator and a facilitator in the sector’s development.

• The size of the market presents immense opportunities to new players with only

20 per cent of the country’s insurable population currently insured.

• The state sector Life Insurance Corporation (LIC), the largest life insurer in 2000,

sold close to 20 million new policies with a turnover of US$ 5 billion.

• The gross premia for the insurance sector was US$ 13 billion for 2001-02.

• There are four public sector and nine private sector insurance companies

operating in general/non-life insurance business with a premium income of over

US$ 2.58 billion.

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• The market’s potential has been estimated to have a premium income of US$ 80

billion with a potential size of over 300 million people. The General Insurance

Corporation (GIC) (which covers the non-life sector) had a total premium income

of US$ 2 billion in 2001-02. This has the potential to reach US$ 9 billion in the

next five years.

Venture Capital

Technology and knowledge have been and continue to drive the global economy.

Given the inherent strength by way of its human capital, technical skills, cost

competitive workforce, research and entrepreneurship, India is positioned for rapid

economic growth in a sustainable manner. To realise the potential, there is a need

for risk finance and venture capital (VC) funding to leverage innovation, promote

technology and harness knowledge based ideas.

• The Indian venture capital sector has been active despite facing a challenging

external environment in 2001 and a competitive market scenario.

• There were 34 VCFs and 2 Foreign VCFs registered with SEBI in March 2008.

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• According to a survey conducted by Thomson Financial and Prime Database,

India ranked as the third most active venture capital market in Asia Pacific

(excluding Japan). It recorded 115 deals in 2001 with average investment per deal

amounting to US$ 7.9 million. 57 VCFs invested US$ 908 million in 101 Indian

companies during 2001.

• Disbursements for 2008 are expected to be US$ 2 billion and are estimated to

reach US$ 10 billion by 2009.

• There is an increased interest in India: 70 VC funds operate in India with the total

assets under management worth about US$ 6 billion.

• The amount has grown nearly twenty fold in the past five years. Most VCs

believe that 2008-09 will be driven by a relatively stable economy and new

initiatives that will boost the e-commerce sector, particularly on-line trading and e-

banking sectors.

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 INDUSTRY PROFILE

A. Origin and Development of the industry

The Bombay Stock Exchange (BSE) is known as the oldest exchange in Asia. It

traces its history to the 1850s, when stockbrokers would gather under banyan trees

in front of Mumbai’s Town Hall. The location of these meetings changed many

times, as the number of brokers constantly increased. The group eventually moved

to Dalal Street in 1874 and in 1875 became an official organization known as ‘The

Native Share & Stock Brokers Association’. In 1956, the BSE became the first

stock exchange to be recognized by the Indian Government under the Securities

Contracts Regulation Act.

The Bombay Stock Exchange developed the BSE Sensex in 1986, giving the BSE

a means to measure overall performance of the exchange. In 2000 the BSE used

this index to open its derivatives market, trading Sensex futures contracts. The

development of Sensex options along with equity derivatives followed in 2001 and

2008, expanding the BSE’s trading platform.

Historically an open-cry floor trading exchange, the Bombay Stock Exchange

switched to an electronic trading system in 1995. It took the exchange only fifty

days to make this transition.

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Capital market reforms in India and the launch of the Securities and Exchange

Board of India (SEBI) accelerated the integration of the second Indian stock

exchange called the National Stock Exchange (NSE) in 1992. After a few years of

operations, the NSE has become the largest stock exchange in India.

Three segments of the NSE trading platform were established one after another.

The Wholesale Debt Market (WDM) commenced operations in June 1994 and the

Capital Market (CM) segment was opened at the end of 1994. Finally, the Futures

and Options segment began operating in 2000. Today the NSE takes the 14th

position in the top 40 futures exchanges in the world.

In 1996, the National Stock Exchange of India launched S&P CNX Nifty and

CNX Junior Indices that make up 100 most liquid stocks in India. CNX Nifty is a

diversified index of 50 stocks from 25 different economy sectors. The Indices are

owned and managed by India Index Services and Products Ltd (IISL) that has a

consulting and licensing agreement with Standard & Poor’s.

In 1998, the National Stock Exchange of India launched its web-site and was the

first exchange in India that started trading stock on the Internet in 2000. The NSE

has also proved its leadership in the Indian financial market by gaining many

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awards such as ‘Best IT Usage Award’ by Computer Society in India (in 1996 and

1997) and CHIP Web Award by CHIP magazine (1999).

The National Stock Exchange of India was promoted by leading Financial

institutions at the behest of the Government of India, and was incorporated in

November 1992 as a tax-paying company. In April 1993, it was recognized as a

stock exchange under the Securities Contracts (Regulation) Act, 1956. NSE

commenced operations in the Wholesale Debt Market (WDM) segment in June

1994. The Capital Market (Equities) segment of the NSE commenced operations in

November 1994, while operations in the Derivatives segment commenced in June

2000.

Since the early 1950s till the early 1990s, Indian policy makers had been

nourishing the goal of Socialist pattern of society. They had been following the

development planning strategy of the former Soviet Russia in a mixed economic

framework. From July 1991, in the face of an unprecedented foreign exchange

crisis, Indian economy started experiencing an IMF-World Bank dictated regime of

liberalisation.

One aspect of this is financial liberalisation. There is a move towards privatisation

of nationalised banks – these banks are selling their shares in the stock market.

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Transnational banks are encouraged to operate in the Indian banking sector.

Attempts are made to attract foreign direct investment in different sectors. There is

an increasing entry of foreign portfolio capital due to stock market liberalisation.

People are encouraged to invest in stocks through income tax benefits and

abolition of capital gains tax. There is a move to develop a national pension fund

which will be invested in different stocks to get returns out of which pension will

be provided to retired people. It is expected that boosting up of stock market will

accelerate the process of capital accumulation and growth.

Stock market development has been an important part of financial liberalisation in

the less developed countries (LDCs). In the pro-liberalisation circle, stock market

is assigned to play an important role in the capitalist development of LDCs.

There are many studies supporting the positive link between stock market

development and growth. Let us mention some of the recent studies. One important

study was undertaken by Levine and Zervos (1998). Their cross-country study

found that the Development of banks and stock markets has a positive effect on

growth. In another study Levine (2003) argued that although theory provides

ambiguous relationship between stock market liquidity and economic growth, the

cross-country data for 49 countries over the period 1976-93 suggest a strong and

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positive relationship (see also Levine, 2001). Henry (2000) studied a sample of 11

LDCs and observed that stock market liberalisations lead to private investment

boom. Recently, Bekaert et al (2005) analysed data of a large number of countries

and observed that the stock market liberalisation ‘leads to an approximate 1 %

increase in annual real per capita GDP growth’.

There are some economists who are sceptical. Long time back Keynes (1936)

compared the stock market with casino and commented: ‘when the capital

development of a country becomes the by-product of the activities of a casino, the

job is likely to be ill-done’.

Referring to the study of World Bank (1993) Singh (1997) pointed out that stock

markets have played little role in the post-war industrialisation of Japan, Korea and

Taiwan. He argued that the recent move towards stock market liberalisation is

‘unlikely to help in achieving quicker industrialisation and faster long-term

economic growth’ in most of the LDCs.

In this perspective this study examines the nature of relationship between stock

market and growth through capital accumulation in India.

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Growth and present status of the industry

The ever-growing and fast-maturing 'India Market' is a lucrative business

destination for developed countries. With 7-8% of GDP growth, huge analytical,

young and English speaking work force the 'pull' for opportunities are luring. The

bandwidth of 'India Market' is enviably wide and very deep.

'Markets in India' are well protected by legal guidelines and efficient

administrators. With a liberal and proactive government at the center the road

ahead for 'Markets of India' is very rosy. 'Market India' has witnessed exponential

growth over past one and half decade. Liberal and transparent financial policies has

effected free-in-flow of FII and as a result of which 'India Market' has grown to a

colossal monster in the international market. Foreseeing sure and substantial

returns on investments (ROI) companies are pro- actively listing on the stock

market indexes. Government agencies once much hated for red tape and bribes has

shed its image. Professionalism is their new mantra. Public Enterprises like IOC,

ONGC, BHEL, NTPC, SAIL, MTNL, BPCL, HPCL and GAIL, SBI, LIC,

Hindustan Antibiotics Limited, Air India etc. to name a few, are giving Private

Indian companies a good run for their money. Private giants like Reliance

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Industries Limited, Infosys, Tata, Birla Corporation, Jet Airways, Ranbaxy,

Biocon, Bajaj Auto, ICICI are breaking their own records every financial years.

Future of the industry

The stock market is booming in spite of the low agriculture output. The monsoon is

good in an overall sense but still the question remains who takes the credit? The

answer is the karma of the people. I appreciate the Indian politicians and the

industrialists who being pawns of destiny are doing things positive and productive.

India, as a country is running a very good period and the position of planets in the

transit are giving wonderful results.

Less than one percent of population own stocks and less than 1000 individuals

control the market, the majority being the FIIS, the promoters of the company. The

credit should go to media for making stock market headlines.

The question many people in the market ask:

Will the bull run continue? What heights we can reach?

First of all, mark my words Indian bourses in the future will be one of the best

investments in the world. There will be a time when it can even reach 3000 points

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in the nifty. India will begin one of the best dasas of the Sun, which will work in its

favour. So before 2009 Indian bourses should see an all time high.

Now this bull run will continue.

• There can be some correction in the BSE sensex in the 7500 points level.

• The market will hover between the 6000- 7000 till mid august.

• There will be huge fluctuations.

Investors and new entrants to the market to cool down a bit and come well below

7000.

In any case if you are long terms players then step-in and buy now and forget for

another 10 years. You will make a killing in the Indian markets.

Most of the tech companies and the main index will do well but slightly in the

lower side of expectations.

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 AN OVERVIEW OF FINANCIAL SERVICES

Since 1990’s, there has been an upsurge in the financial services provided by

various banks and financial institutions. Efficiency of emerging financial system

largely depends upon the quality and variety of financial; services provided by the

banking and non-banking financial companies.

The term ‘Financial Services’ can be defined as, “activities, benefits and

satisfactions, connected with sale of money, that offer to users and customers,

financial related value”.

Suppliers of financial services include the following types of institutions:

• Banks and financial Institutions.

• House building societies.

• Insurances companies.

• Credit card issuer companies.

• Investment trust and Mutual funds.

• Stock exchanges.

• Leasing companies.

• Unit trusts.

• Finance Companies, and so on.

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Financial service organizations render services to industrial enterprises and

ultimate consumer markets. This can be further subdivided to include Government/

public sector/ private sector, the commercial sector, industry and international

markets. Within the financial services industry the main sectors are banks,

financial institutions and non-banking financial companies.

Characteristics of financial services:

The financial have the following characteristics.

Intangible: An organization engaged in providing financial services is largely

dependent on the feedback from the public as to effectiveness, quality and

attractiveness of the services rendered.

Direct sale: Direct sale is the only possible channel of distribution. There are no

middlemen in between. In order to insure that services are available at the right

time and at the right place, simultaneous production and distribution of financial

services is undertaken by the service organizations.

Heterogeneity. In order to cater a variety financial and related needs of

different customers in different areas, financial service organization have to offer a

wide range of products and services.

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Fluctuation in demand: The demand for certain categories of financial services

e.g., life insurance; do fluctuate significantly, according to the level of general

economic activity. This factor puts extra pressures on the roles and functions of

marketing in insurance organizations.

Project customer’s interest : The responsibility of any financial services

organization to protect consumer’s interest is important not just in banking and

insurance, but also in other sectors of the financial services.

Labour intensive. Personalized service versus automation, in fact, is an important

issue in financial services. The financial services sector is highly Labour intensive.

It leads to increase in the costs of production and consequently affects the price of

financial product.

Geographical dispersion. Financial services must have both apple and wider

application. To insure this, the service providing organizations must have massive

branch network so that international, national and local customers enjoy benefits of

convenience.

Lack of special identity. Customers usually approach a nearby branch of bank or

financial institution, because it is convenient to them. As the competing products

offered by various service organizations are similar, the emphasis is more on the

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‘package’ then the product. The package consists of branch location, staff,

services, reputation, advertising and new services offered from time to time.

Information based. Financial services industry is an information-based

industry. It involves creation, dissemination, and use of information. Information is

an essential component in the production of financial services. Cost of processing

information is quite relevant in the profitable production of financial services.

Require quality Labour. Financial services require huge amounts of high

quality Labour to deal with information and communication with the market. The

types of Labour rage from workers performing simple tasks to those undertaking

complex analysis and negotiation require years of training and experience.

Kinds of financial services:

Financial services provided by various financial institutions, commercial banks and

merchant bankers can be broadly classified into 2 categories:

(1) Asset based / Fund based services.

(2) Fee based / Advisory services.

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The important fund based services include:

• Equipment Leasing /Finance.

• Hire- Purchase and Consumer Credit.

• Bill Discounting.

• Venture capital.

• Housing Finance.

• Insurance Services.

• Factoring etc.

The fee based/ advisory services include:

• Issue Management.

• Portfolio Management.

• Corporate Counseling.

• Loan Syndication.

• Merger and Acquisition.

• Capital Restructuring.

• Credit Rating.

• Stock Broking and so on.

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 INSURANCE IN INDIA

The insurance sector in India has come a full circle from being an open

competitive market to nationalization and back to a liberalized market again.

Tracing the developments in the Indian insurance sector reveals the 360-degree

turn witnessed over a period of almost two centuries.

A brief history of the Insurance sector

The business of life insurance in India in its existing form started in India in the

year 1818 with the establishment of the Oriental Life Insurance Company in

Calcutta. Some of the important milestones in the life insurance business in India

are:

1912: The Indian Life Assurance Companies Act enacted as the first statute to

regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to

collect statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with

the objective of protecting the interests of the insuring public.

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1956: 245 Indian and foreign insurers and provident societies taken over by the

central government and nationalized. LIC formed by an Act of Parliament, viz.

LIC Act,

1956, with a capital contribution of Rs. 5 crore from the Government of India.

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 General Insurance

The General insurance business in India, on the other hand, can trace its roots to

the Triton Insurance Company Ltd., the first general insurance company

established in the year 1850 in Calcutta by the British. Some of the important

milestones in the general insurance business in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all

classes of general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India,

frames a code of conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum

solvency margins and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the

general insurance business in India with effect from 1st January 1973. 107 insurers

amalgamated and grouped into four companies viz. the National Insurance

Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance

Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as

a company.

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Insurance sector reforms

In 1993, Malhotra Committee, headed by former Finance Secretary and RBI

Governor R. N. Malhotra, was formed to evaluate the Indian insurance industry

and recommend its future direction. The Malhotra committee was set up with the

objective of complementing the reforms initiated in the financial sector.

The reforms were aimed at “creating a more efficient and competitive financial

system suitable for the requirements of the economy keeping in mind the structural

changes currently underway and recognizing that insurance is an important part of

the overall financial system where it was necessary to address the need for similar

reforms…”

In 1994, the committee submitted the report and some of the key recommendations

included:

i) Structure

 Government stake in the insurance Companies to be brought down to 50%

Government should take over the holdings of GIC and its subsidiaries so that

these subsidiaries can act as independent corporations

All the insurance companies should be given greater freedom to operate

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ii) Competition

Private Companies with a minimum paid up capital of Rs.1bn should be allowed

to enter the industry

No Company should deal in both Life and General Insurance through a single

entity

Foreign companies may be allowed to enter the industry in collaboration with

the domestic companies

Postal Life Insurance should be allowed to operate in the rural market

Only one State Level Life Insurance Company should be allowed to operate in

each state

iii) Regulatory Body

The Insurance Act should be changed

An Insurance Regulatory body should be set up

Controller of Insurance (Currently a part from the Finance Ministry) should be

made independent

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iv) Investments

Mandatory Investments of LIC Life Fund in government securities to be reduced

from 75% to 50%

GIC and its subsidiaries are not to hold more than 5% in any company (There

current holdings to be brought down to this level over a period of time)

v) Customer Service

LIC should pay interest on delays in payments beyond 30 days

Insurance companies must be encouraged to set up unit linked pension plans

Computerization of operations and updating of technology to be carried out in

the insurance industry.

The committee emphasized that in order to improve the customer services

and increase the coverage of the insurance industry should be opened up to

competition. But at the same time, the committee felt the need to exercise caution

as any failure on the part of new players could ruin the public confidence in the

industry.

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The Insurance Regulatory and Development Authority (IRDA)

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in

Parliament in December 1999. The IRDA since its incorporation as a statutory

body in April 2000 has fastidiously stuck to its schedule of framing regulations and

registering the private sector insurance companies.

The other decisions taken simultaneously to provide the supporting systems to the

insurance sector and in particular the life insurance companies was the launch of

the IRDA’s online service for issue and renewal of licenses to agents.

The approval of institutions for imparting training to agents has also ensured that

the insurance companies would have a trained workforce of insurance agents in

place to sell their products, which are expected to be introduced by early next year.

Since being set up as an independent statutory body the IRDA has put in a

framework of globally compatible regulations. In the private sector 12 life

insurance and 6 general insurance companies have been registered.

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 MAJOR DEVELOPMENTS DURING THE YEAR

The year 2008-09 witnessed the commercial banks becoming aggressive players in

the home loans market and a dramatic fall in interest rates across all maturities.

This fall in interest rates was driven by the decreasing bank rate and the increased

competition with in the banks themselves and between the Banks and HFCs. There

was a growing emphasis on the adjustable rate loans due to the decreasing interest

rate scenario.

In presenting the Union Budget for 2008-09 the Hon’ble finance minister

announced that National Housing Bank would launch a Mortgage Credit Guarantee

Scheme, which would be provided to all housing loans thereby fully protecting

lenders against default. Towards this end the Asian Development Bank (ADB)

approved an investment of up to US$10 million

Equivalent in November 2008 to help pioneer the first mortgage guarantee

company for India. Mortgage financing through the India Mortgage Guarantee

Company (IMGC) will help narrow the housing shortfall. The India Mortgage

Guarantee Company will improve the efficiency of housing finance and protect

mortgage lenders such as banks and housing finance

Companies in cases of borrower default.

35
The creation of IMGC will:

• Generate a greater volume of mortgage lending in the Indian market

• Lower down payment requirements to as low as 5%

• Broaden the eligibility for mortgages, and

• Extend mortgage repayment periods by up to 25 years These changes will, in

turn, support capital market development by promoting securitization and

increasing home ownership. The incremental direct disbursement market share for

the years 2001-02 and 2008-09 shows that the HFCs have lost

significant market share to the Banks.

Organized as a public limited company, IMGC is sponsored by the National

Housing Bank (NHB) of India and the Canadian Mortgage and Housing

Corporation. Other main shareholders are the International Finance Corporation,

and ADB. The total project cost is estimated at US$40 million in paid-up capital.

Finishing touches are being given to IMGC, which is expected to formally come in

to existence in September of this year. The schemes from IMGC are expected to be

launched by January ’04 With the enactment of The Securitisation and

Reconstruction of Financial Assets and Enforcement of Security Interest Act 2008

36
(The Securitisation Act), banks have been empowered to attach assets of the

defaulters without intervention of lengthy and time consuming court procedures.

This would help the banks for speedier foreclosure of home loan accounts in

default. NHB is also operational zing the foreclosure laws, which will enable the

HFCs to foreclose the defaulting account and apply to the recovery officer for sale

of mortgaged property. Easier foreclosure laws coupled with the proposed

mortgage credit guarantee scheme of the NHB are expected to release

nonperforming funds of HFCs for lending.

Products and Services

The housing finance industry is getting increasingly commodities. Competition

within the sector is ensuring that in case of inadequate credit appraisal or recovery

systems. The defense strategies for managing increasing default rates fall into three

basic categories: borrower strength, collateral strength, lender techniques and

various forms of insurance.

The first line of defense against loss is making good loan decisions; the second is

managing the asset effectively, with risk sharing entities coming last. Credit risk

insurance is only activated after the lender has done everything possible to avoid a

loss on the loan.

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Credit risk management in the Indian context means the housing finance company

has to develop certain in-house/local standards for measurement of a borrowers’

ability and willingness to repay the loan for the long term, apply those standards,

measure the performance and continually make adjustments to the standards based

upon results. Operations risk management means establishing the internal capacity

to make good credit

decisions (reduce risk of loss), while at the same time managing the assets so that

costs are minimized. With the exception of HDFC, banks and other housing

finance companies have little experience in credit and operational risk and

management in the housing finance sector.

In this context the proposed Mortgage Guarantee Company (MGC) could have a

significant influence on the housing finance market provided if the MGC is able to

offer reasonable risk pricing for credit and default risk. With MGC in place

offering attractive credit risk mitigation, the housing finance

could see many more new players offering home loans with the market becoming

more competitive. There is a lot of optimism at the NHB on the growth prospects

of the mortgage market and the expectations are also running high on their ability

38
to streamline mortgage legislative environment; this could further bolster the

market growth and lower the cost of mortgages.

Asset liability mismatch increases the interest rate and liquidity risk profile of the

HFCs and Banks. The tenure of housing loan has consistently increased from 5

years in the past to 15-20 years at present, however the asset remains in the books

of the lender for 8-10 years. Banks have the ability to largely mitigate this risk due

to access to diversified resources and lending options. The banking sector, every

year, gets around Rs 400- 450 billion in savings and demand/current account

deposits out of which around 75-80 percent can be considered as core float and is

largely long term in nature resulting in banks being largely protected from asset

liability mismatch risk. However differences in the maturity profiles of assets and

liabilities continue to be of major concern for HFC’s.

In future, the ability to foreclose defaulting mortgage assets will become a key

competency for profitability in housing finance market. HFCs and Banks are

increasingly looking at smaller towns for growth. Some HFCs are expected to

follow a new business model of becoming the originator of loans, and thereafter

securitising to one of the larger players. As a result, these players will book the

revenues (processing fees) upfront and thereafter

39
Transfer the assets to a larger player (commercial bank or general public) in the

form of portfolio sell out or a MBS. However, only HFCs with the ability to raise

good quality assets and having adequate distribution channels are likely to survive

the competition.

40
 MUTUAL FUNDS:

Mutual funds are companies that pool funds from a large number of investors and

invest them on their behalf for a financial return by buying, holding and selling

securities. Funds managed by institutional investors are huge and growing rapidly,

particularly as part of the resolution of pension pressures in various parts of the

world. Global Assets under Management (AUM) rose 6 per cent to US $ 38.2

trillion in the first half of 2003, according to Cerulli Associates' latest Global

Update report. Cerulli predicts the global compound annual growth rate for the

industry to be 8 per cent between 2008 and 2009.

41
INDIAN MUTUAL FUND INDUSTRY

The history of Indian mutual fund industry can be distinctly divided into two

phases - the period before liberalization when only public sector players existed

with one dominant player Unit Trust of India and the post-liberalization era where

the industry was opened up to private players.

Unit Trust of India (UTI) was established in 1963 and launched its legendary first

scheme 'US-64' in 1964. UTI witnessed a slow and steady growth over seventies

and eighties and by end of 1988 it had an AUM of Rs. 67,000 million. From 1987,

non-UTI, public sector mutual funds were allowed and a series of mutual fund

companies were set up by public sector banks and financial institutions. At the end

of 1993, the overall AUM of mutual fund industry was Rs. 470,004 million.

The mutual fund industry was opened up for private participation 1993 and a new

era was ushered in, paving the way for an unprecedented choice of products and

services to Indian investors. Detailed guidelines were established and the mutual

fund industry (except UTI) came under the regulation of Securities Exchange

Board of India (SEBI). Many reputed foreign mutual funds such as Templeton,

42
Alliance, Prudential group etc. set up operations in India. As at the end of January

2003, there were 33 mutual funds with total assets of Rs. 1,218,050 million.

In February 2003, the Unit Trust of India Act 1963 was repealed and UTI was

broken into two separate entities. One is the Specified Undertaking of the Unit

Trust of India, still under the control of Government of India with AUM of Rs.

298,350 million as at the end of January 2003. The second is the UTI Mutual Fund

Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and

functions under the Mutual Fund Regulations. As at the end of October 31, 2003,

there were totally 31 funds in India, with assets under management of about Rs.

1,267,260 million.

43
TRENDS IN MARKETING OF MUTUAL FUNDS IN INDIA

The changing marketing trends in the mutual fund industry in India can be easily

linked and traced to its history of growth. The changes in marketing strategies can

be characterized by 4 stages which have evolved along with the growth and

evolution of the industry.

 Product Focus

For the first three decades of the industry, from the setting up of UTI till the entry

of private sector players, the only focus of the marketing strategy was different

product offerings. UTI and various other public sector mutual funds focused on

introducing an array of products falling in different categories. The categorization

was primarily based on two factors: one was the way the schemes were traded and

the other through different composition of debt and equity securities in the scheme.

 By the way Schemes were traded:

>Open-ended Schemes

>Close-ended Schemes

In an open-ended scheme there are no limits on the total size of the corpus.

Investors are permitted to enter and exit the open-ended scheme at any point of

44
time at a price that is linked to the net asset value (NAV). In case of close-ended

schemes, the total size of the corpus is limited by the size of the initial offer. The

entry and exit of investors is possible by only trading on the stock exchanges. Due

to liquidity constraints posed by close-ended funds, they were soon rendered

obsolete and most of the prevailing schemes today are open-ended schemes.

 By Composition of Debt and Equity in the Scheme:

> Growth Schemes

>Income Schemes

>Balanced Schemes

>Money Market Schemes

The products were also differentiated by the composition of equity and debt in

various schemes. Growth schemes invest predominantly in equities whereas

Income schemes invest only in fixed income debt securities. Balanced schemes try

to derive the benefits of both equity and debt by investing in both. Money market

schemes invest in short term liquid securities like money market instruments so

that they serve as appropriate products for investing short term funds.

There were other niche schemes to fulfill specific needs, such as Tax Saving

Schemes, Sector Specific Schemes, Index Schemes (which are passively invested

in a benchmark Index) and so on.In the Product Focus stage, the aim of the mutual

45
fund companies was to introduce a wide variety of products and due to

oligopolistic competition.

 Customer Ownership Focus

Mutual fund companies began to segment their target customers and position their

various products based on the target segment they proposed to address. The target

segment was broadly divided into institutional segment and individual investor

segment. The institutional segment consisted of treasury departments of Corporate,

Trusts etc and suitable products such as Institutional Income schemes and Money

Market schemes were targeted at them. The individual investor was in turn divided

into various segments such as Young Families with small or no children, Middle-

aged People saving for retirement and Retired People looking for steady income.

Suitable products such as Growth and Balanced schemes for young families and

Income schemes for retired people were marketed.

By proper segmentation and by targeting the right product to the right customer,

Mutual Fund companies hoped to win the confidence of their customers and 'own'

them for a lifetime.

46
  Specialized Product & Service Focus

If one observes the trends in the recent past, Companies have been taking the

above customer focus further by designing and launching specialized products and

services. As awareness levels of individual investors go up, focus is on identifying

one's investment needs depending on one's financial goals, risk taking ability and

time horizon. Investors chose companies, which help them in the above through

specialized products and services.

For example, a common financial goal is to save and invest for meeting the

education needs of children. A number of mutual funds such as Pru-ICICI Mutual

Fund and UTI Mutual Fund have launched products that are designed to serve this

specific need. A similar such need is planning for a comfortable retirement.

47
 Non Banking Financial Companies

Non-Banking Financial Companies (NBFCs) are a set of financial service

companies that are quite unique to India in terms of their size and the range of

services provided by them. The services provided by NBFCs range from retail

service such as loans, leasing and hire purchase financing, brokerage and

distribution services; to bill discounting and syndication services to corporate

customers. Till early 1990s, when NBFCs were at their peak, most retail customers

would approach an NBFC rather than a bank for all their financial service needs.

However, since its peak in the mid-1990s when public deposits held by NBFCs

increased to 9.5 per cent of bank deposits, this sector saw a steep decline.

Aggregate public deposits of NBFCs as a percentage of bank deposits came down

to 1.5 per cent by March 2003 .

Till 1990s, NBFCs constituted a significant part of the Indian financial services

industry and complemented the services provided by a bank. They were a

heterogeneous group of intermediaries of varying size and provided a range of

services. They were characterized by their ability to provide niche financial

services and due to their relative organizational flexibility; they were often able to

provide tailor-made services relatively faster than banks and financial institutions.

48
This enabled them to build up a wide-ranging clientele from small borrowers to

establish corporate.

Based on the principal activity carried out by the company, NBFCs were classified

by RBI under five main categories - Equipment leasing company (EL), Hire

Purchase finance company (HP), Investment company (IC), Loan company (LC)

and Residuary non-banking company (RNBCs - large companies not coming under

any one particular category). NBFCs achieved their zenith in early 1990s. Their

accelerated expansion in 90s was driven by the opportunities created by the

process of financial liberalization. However, their rapid growth resulted in

unhealthy practices and certain disconcerting developments. In response to this,

RBI considerably tightened its supervisory and regulatory framework over NBFCs

in 1998. Some of the new measures of Hire purchase finance, mostly consisting of

retail funding of cars, commercial vehicles and consumer durables were the

primary activity, followed by loans and inter-corporate deposits.

49
 COMPANY PROFILE

UNICON INVESTMENT SOLUTIONS

UNICON is a financial services company which has emerged as a one-stop

investment solutions provider. It was founded in 2004 by two visionary and

flamboyant entrepreneurs, Mr. Gajendra Nagpal and Mr. Ram M. Gupta, who

possess expertise in the field of Finance. The company is headquartered in New

Delhi, and has its Corporate office in Mumbai with regional offices in Kolkata,

Chennai, Hyderabad and Noida

UNICON is a professionally managed company, lead by a team with outstanding

managerial acumen and cumulative experience of more than 200 years in the

financial markets. The company is supported by more than 3500 Uniconians and

has an extensive network of over 100 branches, 600 plus business partner locations

& 2500 remisers providing it with a national footprint.

With a customer base of over 200,000, the UNICON Group has an eye for the

intricate financial needs of its clients and caters to both their short term and long

term financial needs through a comprehensive bouquet of investment services.

These services range from offline & online trading in equity, commodities and

currency derivatives to debt markets to corporate finance and portfolio

management services. The company has a sizable presence in the distribution of

50
3rd party financial products like mutual funds, insurance products and property

broking. It also provides expert Advisory on Life Insurance, General Insurance,

Mutual Funds and IPO’s. The distribution network is backed by in-house back

office support to provide prompt and efficient customer service

The Equity broking arm – UNICON Securities Pvt. Ltd offers personalized

premium services on the NSE, BSE & Derivatives market. The Commodity

broking arm Unicon Commodities Pvt. Ltd offers services in Commodity trading

on NCDEX and MCX. The UNICON group also has a PCG division providing

investments solutions for High Net Worth Individuals. The Corporate Advisory

Services arm – Unicon Capital Services (P) Ltd offers entire gamut of Investment

Banking services to corporates.

UNICON can boast of some of the most respected names in the Private Equity

space like Sequoia Capital and Nexus India Capital as its share holders.

51
Mission & Vision

Mission :

To create long term value by empowering individual investors through superior

financial services supported by culture based on highest level of teamwork,

efficiency and integrity.

Vision :

To provide the most useful and ethical Investment Solutions - guided by values

driven approach to growth, client service and employee development.

52
 MANAGEMENT TEAM

Mr. Gajendra Nagpal

Founder & CEO

Mr. Ram M Gupta

Co-Founder & President

Mr. Y.P. Narang

Head - Fixed Income Group

Mr. Sandeep Arora

Chief Operating Officer

Mr. Vikas Mallan

Chief Financial Officer,

Head – Distribution

Mr. Trinadh Kiran

National Head(E-Broking)

Mr. Subhash Nagpal

Director - Strategic

Planning & Distribution

Ms. Anjali Mukhija

Chief Compliance Officer

53
Mr. Vijay Chopra

National Head (Business Alliances)

Mr. Anurag Nayar

Chief Technology Officer

Mr. Ashish Kukreja

Head HNI Client Relations

Ms. Deepa Mohamed

Head -HR & Training

Mr. Sandeep Mahajan

Head (Equity Broking-Offline

54
Unicon Tie up with various insurance companies:

1. Tata AIG life insurance

2. SBI life insurance

3. Max new York life insurance

4. Reliance

5. Birla sun life

6. Life insurance corporation of india

7. Kotak Mahindra

8. Met life

9. ICICI prudential

55
 PRODUCT

EQUITY

UniconPlus

Browser based trading terminal that can be accessed by a unique ID and password.

This facility is available to all our online customers the moment they get registered

with us.

Features:

Trading at NSE,BSE and Derivatives on single screen.

Add multiple scrips on the market watch.

Greater exposure for trading on the available margin.

Common window for display of market watch and order execution.

Real time updating of exposure and portfolio while trading.

Offline order placement facility.

56
 Stop-loss feature.

Competitive Brokerages.

Banking integration with ICICI Bank, HDFC Bank & Axis Bank.

Proxy link to enable trading behind firewalls.

UniconSwift

Application based terminal for active traders. It provides better speed, greater

analytical features & priority access to Relationship Managers.

Features:

Trading at NSE,BSE and Derivatives on single screen.

Add any number of scrips in the Market Watch.

Tick by tick live updation of Intraday chart.

Greater exposure for trading on the margin available

Common window for market watch and order execution.

Key board driven short cuts for punching orders quickly.

57
 Real time updation of exposure and portfolio.

Facility to customize any number of portfolios & watch lists.

Market depth, i.e. Best 5 bids and offers, updated live for all scripts.

Facility to cancel all pending orders with a single click.

Instant trade confirmations.

Banking integration with ICICI Bank, HDFC Bank & Axis Bank,& Bank of

India,& Corporation Bank, & Karnataka Bank, & Oriental bank of Commerce, &

South Indian Bank, & Vijay Bank and Yes Bank.

Stop-loss feature.

58
Commodity

Unicon offers a unique feature of a single screen trading platform in MCX and

NCDEX.Unicon offers both Offline & Online trading platforms. You can Walk in

or place your orders through telephone at any of our branch locations

Online Commodity Internet trading Platform through UniFlex.

Live Market Watch for commodity market (NCDEX, MCX) in one screen.

Add any number of scrips in the Market Watch.

Tick by tick live updation of Intraday chart.

Greater exposure for trading on the margin available

Common window for market watch and order execution.

Key board driven short cuts for punching orders quickly.

Real time updation of exposure and portfolio.

Facility to customize any number of portfolios & watchlists.

Market depth, i.e. Best 5 bids and offers, updated live for all scripts.

Facility to cancel all pending orders with a single click.

Instant trade confirmations.

Stop-loss feature.

59
Depository

Unicon Depository Services offers dematerialization services as a participant in

Central Depository Services Limited (CDSL), through its Depository operations.

The company believes in efficient and cost-effective and integrated service support

to its brokerage business. Unicon Securities Private Limited, as a depository

participant, will offer depository accounts for individual investors as well as

corporates which will enable them to transact in the dematerialized segment,

without any hassles.

Depository offer a safe, convenient way to hold securities as compared to holding

securities in paper form. Our service provides an integrated single platform for all

our clients ensuring a risk free, efficient and prompt depository process.

Facilities Offered by Unicon

* De-materialization:

60
You can submit your physical shares at the Unicon branch for

dematerialization into electronic form.

* Re-materialization:

You can also request for Re-materialization which enables you to convert

the dematerialized shares into physical form.

* Transfer:

Inter and intra depository services are available through which you can

transfer shares.

* IPO:

You can apply for IPO using your demat account details and on allotment

the securities are transferred directly to your demat account.

* Corporate Actions:

While holding your stock in demat account, in case you are eligible for any

bonus and rights issues the allotment would be transferred to your demat

account.

* Easi:

61
You can view your demat account over the Internet and avail a host of services.

This facility empowers our clients to view, download, print updated holdings with

respective valuations.

IPO

At Unicon you can invest in the Primary markets (Initial Public Offerings)

online without going through the hassles of filling up any IPO application forms or

any other paperwork.

We shall make sure that you do not miss the opportunity to subscribe/invest in a

good IPO issue by providing you an online IPO application form, transfer of funds

online through secured payment Gateways of leading banks like ICICI, HDFC,

AXIS bank.

In addition to the above we shall provide you with the In-Depth analysis of the IPO

issues which shall be hitting the Indian Markets in near future, IPO Calendar,

analysis on the recent IPO listings, prospectus, offer documents and other IPO

research reports so as to help you take an informed decision to invest in the IPO

issues.

62
Online IPO facility is open to all our registered clients at no cost whatsoever. All

you need is the following to subscribe online to the IPO issues:

A trading account with Unicon

A Demat account with Unicon

An access to the net banking facility with the Banks through which Unicon has

operational Gateway facility (ICICI, HDFC and AXIS Bank).

You must have signed a Power of Attorney (POA) agreement for applying in

IPO’s online.

63
Mutual Fund

Unicon Provides expert advice to its clients for their investments in equity & debt

markets through Mutual Funds.

Our experts advice you the best investment solutions that suit you and help you to

reach your financial goals.

They help you ascertain your risk profile & guide you with the right product mix

which reduce your tax liability, increase your savings & enhance your wealth.

Whether you have a conservative, medium or aggressive investment risk appetite,

our experts would guide you to build a portfolio to optimize the return of interest.

Classification of mutual fund:

1. By structure

Open-ended scheme

Closed-ended scheme

Interval schemes

2. By investment objective

Growth schemes

64
 Income schemes

Balanced schemes

Money market schemes

3. By Other Schemes

Tax saving schemes

Special schemes

Index Schemes

Sector specific schemes

65
Insurance

Unicon offers all products of General Insurance under one umbrella. Unicon

comprises of a team of distinguished professionals from insurance, finance and

other management disciplines who have vast business & managerial experience.

Unicon team evaluates the client's business environment and studies the risk

profile. based on the results of these evaluations, Unicon team then suggests the

most cost effective , integrated insurance package that is perfectly suited to the

client's risk profile.

Unicon has a nationwide network of branches all over India, equipped with top

quality infrastructure facilities, to provide you prompt & efficient service.

Life Insurance

Unicon offers you a Peace of Mind by offering various life insurance plans for

your unique & specific needs. Our philosophy is that for every financial problem,

there is a solution also. And we are here to give you complete financial solutions.

66
At the same time we offer you very Prompt & Reliable Policy related service for

enduring relationship.

They offer a very wide range of products to fulfill your particular requirements.

You can always have an access to our 83 Branch Offices situated at prime

locations of the city, or you can call our Relationship Manager to guide on your

Investments.

Following is the glimpse of Life Insurance Plans:

Protection Plans

Investment Plans

Child Plans

Retirement/Pension Plans

Saving Plans

NRI Plans

Health Plans

67
Investment Banking

Overview

The Investment Banking arm of Unicon Capital Services (P) Ltd. caters to the

funding requirements of corporates. Our wide experience and market knowledge as

a leading securities firm ensures that clients’ requirements are met at optimum

cost. By constantly improving our knowledge capital and remaining focused on

client needs, we aim to create significant value for our clients by helping them

execute the right capitalization strategy. We also intend to initiate merchant

banking services (Capital Markets Fundraising) in the short term (Merchant

Banking License pending)

Offerings

Private Equity (PE) Syndication

68
They specialize in the syndication of the private equity for the Indian companies in

high-growth markets on their capitalization/re-capitalization strategies, which

helps them to achieve their growth targets. Our team of professionals ensures

complete confidentiality, strong focus on implementation and quick turnaround

time. Access to key decision makers at PE funds gives us an edge in optimal

structuring and efficient closure of transactions. They service their clients through

various stages of the PE deal namely collateral preparation, investor short listing,

commercial term sheet, due diligence and final closure.

Mergers & Acquisitions (M&A) Advisory

They provide both buy-side and sell-side advisory services as part of their M&A

advisory offering. They advise clients during the entire transaction process right

from target identification to deal closure. They have an experienced and highly

qualified team with more than 40+ man-years of experience which specializes in

identification and short listing of potential targets, strategic planning of an

acquisition and arranging capital for the transaction, if needed.

Debt Syndication

Our offerings include:

69
• Project Finance / Term Loans for Expansion - Arranging Long-term loans

for setting up new projects from Financial Institutions and Banks

• External Commercial Borrowings (ECBs) - Arranging LIBOR-linked loans

• Foreign Currency Convertible Bonds (FCCB)-Arranging FCCB Loans

• Working Capital Facilities - Arranging fund-based and non-fund based

limits for clients from Banks at competitive rates

• Trade Finance - Arrangement of trade finance (Buyer's / Supplier’s Credit)

• Inter-Corporate Deposits – Borrowing and Placement

70
 OBJECTIVES OF THE STUDY

• To find the market potential and market penetration of UNICON

INVESTMENT SOLUTION product offerings in New delhi.

• To collect the real time information about preference level of customers

using Demat account and their inclination towards various other brokerage

firms e.g. Indiabulls, Sharekhan, Indiainfoline, Religare, Alankit , Unicon.

• To expand the market penetration of UNICON INVESTMENT SOLUTION.

• To provide pricing strategy of competitors to fight cut throat competition. To

increase the product awareness of UNICON INVESTMENT SOLUTION as

single window shop for investment solutions

71
 RESEARCH METHODOLOGY

Research design and methodology

It was important to collect detailed information on various aspects for effective

analysis. As “Marketing today is becoming more of a battle based on information

based society companies with superior information enjoys a competitive

advantage.

Methodology Adopted

The information was collected through person interview and interview was

conducted through the mode of questionnaire.

Analysis of Data

Data collection

The data collection was collected through primary as well as secondary source.

PRIMARY DATA :

Primary data was collected from 155 respondents using a schedule of question and

a survey was conducted. The tabular and graphical data was Microsoft excel.

72
SECONDARY DATA :

Secondary data was collected mainly from internet ,printed journals on the capital

markets of India ,newspaper articles and books written on the Indian stock

markets.

SAMPLING:

Judgment, non-random sampling was used. Respondents were request to

help with the schedule at their offices, homes or at the UNICON

INVESTMENT SOLUTION office.

73
 DATA ANALYSIS

DATA ANALYSIS
1. preference of investment

FIG4.5.1 Result of preference of investment

Interpretation:This data shows that the mutual fund

market is on the rise yet,so the most favored
investment continues to be in the share market.so with
the more transparent system,investment in the market
can definitely be increased.

74
 a. Awareness of unicon facilities

20%

No
80% Yes

Fig4.5.4 Result of
Awareness of unicon facilities
Interpretation:although there is sufficiently high brand equity among the
target audience yet,it is to be noted that the consumer are not aware of the
facilities provided by company meaning thereby company should
concentrate more towards promotional tools and increase it focus on
product awareness rather than brand awareness.

75
 2.Awareness of unicon
investment solutions

as a brand
Fig 4.5.2 Result 0f Awareness of unicon
as a brand

Interpretation: This graph chart shows that unicon has a

reasonable amount of brand awareness in terms of a
investment company.this brand image should be further
leveraged by the company to increase its market share
over its competitors.

76
 Awareness on Online Share Trading

Fig4.5.2 Result of Awareness of Online Share Trading

Interpretation: With the increase in cyber education, the awareness towards

online share trading has increased by leaps and bounds. This awareness is expected

to increase further with the increase in Internet education.

1. Awareness of UNICON INVESTMENT SOLUTION Invest smart

as a Brand

77
Fig4.5.3 Result of Awareness of Reliance money as a Brand

Interpretation: This pie-chart shows that reliance money has a reasonable amount

of Brand awareness in terms of a premier Retail stock broking company. This

brand image should be further leveraged by the company to increase its market

share over its competitors.

2. Satisfaction Level among Customers with current broker

78
Fig4.5.5 Result of satisfaction level among customers with current broker

Interpretation: This pie-chart corroborate the fact that Strategic marketing, today,

has gone beyond only meeting Sales targets and generating profit volumes. It

shows that all the competitors are striving hard not only to woo the customers but

also to make them Brand loyal by generating customer satisfaction.

79
Frequency of Trading

Fig4.5.6 Result of Frequency

of Trading

Interpretation: Inspite of the huge returns that the share market promises, we see

that there is still a dearth of active traders and investors. This is because of the non

– transparent structure of the Indian share market and the skepticism of the target

audience that is generated by the volatility of the stock market. It requires efficient

bureaucratic intervention on the part of the Government.

80
 3. Percentage of earnings invested in Share Trading

Fig4.5.7 Result of percentage of earning invested

in share trading

Interpretation: This shows that people invest only upto 10% of their

earnings in the stock market, again reiterating the volatile and non-transparent

structure of the Indian stock market. Hence, effective and efficient steps should be

undertaken to woo the customers to invest more in the lucrative stock market.

81
 CONCLUSIONS

To get initial success in this field is very difficult. Although the business

generation becomes easier with time as we serve more people who then get added

up in the loyal clientage. Thus time and service are two most factors to get in this

field.

Also the corporate remains a very important segment which gets business in bulk

but retail cannot be ignored which makes your business ticking.

Customer remains in the pivotal position.

Based on the findings of our project we would like to suggest the following:-

1. After sales services and follow up calls are important for getting new

references so trained telesales should be appointed for this purpose whose

sole work should be to make feedback calls.

2. Investment is having too many financial products right from Demat account

to General Insurance and not all the salespeople are familiar with each and

every product so the work force should be segregated each group dealing in

a specific product and the sales target should be given likewise.

82
3. While interacting with the investors I found that most of the customers are

unaware about the Mutual fund. Some of the people look upon mutual funds

and equity trading as gambling. Thus a mutual fund awareness program can

help to increase the penetration of mutual funds in the market.

4. INVESTSMART should declare in black ink that they will charge just 1

paisa per transaction. People tend to think that there must be some hidden

charges.

5. Rs950 account opening charges are too high when targeting a corporate so

the company should be flexible on this amount.

6. INVESTSMART should provide periodic training for updating the product

knowledge of various financial advisors.

7. Company should have a scheme of rewards and recognition to employees

and the field persons to boost their motivation.

83
KEY ISSUES AND CONCLUSIONS

Based on the above SWOT analysis and study of the available data I have come

to the following conclusions:

HUGE POTENTIAL:

1. All though relatively new entrants in the market, INVESTSMART is slowly

but surely gaining a strong hold because it is finally able to grasp the

investment climate in Delhi. Secondly the branch managers at all the

branches are very knowledgeable with a lot of experience in the financial

markets so under their leadership can definitely expand its base

2. The entire workforce consists of mostly youngsters, which means they can

be encouraged and motivated to do good work because they have a long way

to go and most of them are eager to climb the ladder.

3. Right now Reliance is at its nascent stage and will surely grab the major

market under its belt very soon like in other fields.

84
Huge investments taking place:

a. The Stock Market has been very buoyant until now especially in the

past 3 years. This particular trend is very favorable because a soaring

SENSEX means higher returns, which encourages the investors to

invest their money in the market. Although in the past 3 months the

market has shown very unpredictable trend and has already lost over

1000 points.

b. So in order to make the best the only thing required is to recruit more

field staff who should be trained in a proper way to get better results.

c. In case of insurance, it requires push selling because people always

associate it with emergencies and unpleasant situations like death and

they don’t want to think about such situation let alone prepare for

them, which means it requires a lot of conviction on part of the

executives.

85
Large untapped market:

• People have just opened up to the idea of ULIPs because till now they knew

only two kinds of insurance plans, endowment and term plans so the concept of

high returns with protection is very new to them and slowly and slowly these are

becoming popular so there is a huge market waiting to be tapped.

• In the past few years there has been a tremendous inflow of funds in the

Indian market which has lead to the sky rocketing SENSEX. In fact there has been

a tremendous response from the investors not only in shares but mutual funds as

well. The Rs5700Cr infused in the market through the HSBC INVESTSMART

Equity mutual Funds is an example of the growing trust of investors who earlier

shied from such investments due to stock market fiascos like the Harshad Mehta

scam or the US64 disaster in which investors lost huge amounts of money as well

as their trust in financial instruments.

• With the FDI limits being relaxed, a lot of avenues will open up in the

insurance sector and insurance companies are expected to come up with new plans

with a great deal of customization and flexibility.

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 RECOMMENDATIONS

• The company should effectively focus on advertising.

• The company should make more aware to the customer about their investment
process.

• Company must provide full information to their employee about sector and there
product and services in which its deals.

• Company basically deals in customer relationships it must provide more and

more training and development programme to their relationship manager.

• Company must focus on the need and wants of the customer as well as after
sales services, to make the customer more loyal.

• Company must give reliable and full information to their customer about their
product and services, and also there benefits.

• Company should take care of their employee by giving them cash incentive or
taking those people abroad who have achieve their target or make a large-
volume of sales. And also give catered meals to staff that work long hours or
those working during peak hours.

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• Lastly taking the feedback from customer so as to better tune its services with
the customer needs.

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 LIMITATIONS

Limitations and Constraints

Time Constraints:

Time is that factor which cannot be hold by anyone, ones it goes never comes

back.

The researcher found lack of time and done a precise in-dept study and bring out

the available data and information.

Resource Constraints:

Earlier there was not that much researches had been conduct on this topic, so the

researcher find it difficult to group the information and get the best output.

As the researcher had only used the secondary data the lack or impropriety in the

secondary data will also present in the research project

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 APPENDIX

QUESTIONNAIRE

Q1. In which of these Financial Instruments do you invest into?

Shares Mutual Funds Bonds Derivatives

Q2. Are you aware of online Share trading?

Yes No

Q3. Heard about UNICON INVESTMENT SOLUTION INVESTSMART?

Yes No

Q4. Do you know about the facilities provided by UNICON INVESTMENT

SOLUTION INVESTSMART?

Yes No

Q4. Do you know about the facilities provided by UNICON INVESTMENT

SOLUTION INVESRTSMART?

Yes No

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Q5. With which company do you have your DEMAT account?

Reliance money ICICI Direct UNICON India Bulls

Others (please specify)

Q6. What differentiates your Share trading company from others? (in regards

of brokerage, satisfaction, services, products )

Q7. Are you currently satisfied with your Share trading company?

Yes No

Q8. How often do you trade?

Daily Weekly Monthly Yearly

Q9. What percentage of your earnings do you invest in share trading?

Up to 10% Up to 25% Up to 50% Above 50%

Q13. How do you rate these share trading companies?

a. Reliance money
b. ICICI Direct
c. India Bulls
d. IL&FS INVESTSMART
e. Others (Please
specify)
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 1. 2. 3.

4. 5.

Q14. What more facilities do you think you require with your DEMAT

account?

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 BIBLIOGRAPHY

Articles

• Capital Market Review 2003-04,Published by SHCIL

Books

• Financial Management Prashanna Chandra,6th edition

• Financial Management Khan & Jain ,3th edition

• Securities Analysis and Portfolio Management ,Fischer & Jordon

• Research Methodology, David .R. Cooper and Schindler

Websites

• www.unicon.co.in

• www.icicidirect.com

• www.investsmart.com

• www.nseindia.com

• www.economicstimes.com

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