Professional Documents
Culture Documents
PROJECT REPORT
ON
INVESTMENT OPPORTUNITIES & TREND OF
INVESTMENT
AMONG
WORKING PROFESSIONALS A case Study on Share Khan
Ltd. Conducted at Asansol & Durgapur region
FOR
SHAREKHAN LTD.
DECLARATION
Signature
ACKNOWLEDGEMENT
I hereby 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 throughout the project tenure.
CONTENTS
Acknowledgement
2. Executive Summary
4-6
5. Company Profile
9-19
13
5.3 Competitors
6. Theoretical Background
19
20-32
20
6.2 Investing
22
7.
Research Methodology
33-
8.
Data Analysis
37-
9.
Findings
50-
10. Recommendations
11. Conclusion
54
12. Limitations
55
13. Annexure
56
14. Bibliography
59
Executive Summary
The area of the project work is Asansol & Durgapur 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.
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.
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.
To find out the awareness among working professionals 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.
To analysis the different investment policies and its acceptance offered by
Sharekhan.
Company Profile
Sharekhan is online stock trading company of SSKI Group, provider of Indiabased 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 Indias 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 8th February, 2000 as an online trading portal, Sharekhan
offers 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. Sharekhans 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.
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
10
best broking house for 2004' award. Ever since it launched Sharekhan as its
retail broking division in February 2000, it has been providing institutionallevel 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 contentrich portal, www.sharekhan.com. Investors will also get a useful set of
knowledge-based tools that will empower them to take informed decisions.
11
Convenience
One can call Sharekhans 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 assists 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.
12
13
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.
Top gainers, Top losers, Top traded equities and Top traded funds are the
15
3. Trade Tiger
Trade Tiger is an application that brings you the power of a brokers terminal,
right from your desktop.
16
4. Invest Tiger
This account allows you to trade through website and is suitable for
retail investors.
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.
TYPES OF PLANS
Advance
Brokerage
Brokerage
750
1000
2000
6000
10000
18000
30000
60000
100000
Intraday
10 paise
9 paise
7 paise
5 paise
4 paise
4 paise
3 paise
2 paise
1.5paise
Brokerage -Delivery
50paise/50paise
45paise/45paise
40paise/40paise
25paise/25paise
22paise/22paise
20paise/20paise
18paise/18paise
15paise/15paise
10paise/10paise
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
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.
Understanding consumer behavior and "knowing customers" is never
simple .Customers may say one thing but do another. They may not be in touch
19
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.
21
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
22
24
25
27
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.
28
29
30
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 profit. In this type of
investment there is no fix rate of return its depend on the peoples
foresight.
31
32
Safety
Liquidity Return
Good
Good
Low
Moderat
Maturity
N.S.C. (8.16% compounded). Tax High
benefits,
No TDS
Low
Moderat
e
Good
Taxable
Moderat
e
High
Low
Moderat
e
Bank
FDs
(between
4.5
-5.5%) High
High
Low
Good
Low
Low
Moderat
High
Insurance
High
Low
Low
Low
Low
investment
environment
33
option
in
todays
Infrastructure Bonds
High
Moderat
Moderat
Safety
Fund
Debt, High
Liquidity
Return
Varies
Low
Low
High
Low
Moderate
Fund
34
Share market
Low
Moderate High
Properties market
Moderate Low
Varies
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.
Type of Research:
35
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:
36
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.
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:
37
3) Sample Unit:
It gives the target population that will be sampled. This research has been
carried only in Asansol & Durgapur 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 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
38
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 Asansol & Durgapur city.
Sample size: A total of 75 respondents were surveyed.
Area of operation: Asansol & Durgapur City
39
DATA ANALYSIS
20. 20%
34. 34%
Insurance
Mutual Fund
23. 23%
3. 3%
3. 3%
17. 17%
Bonds
Stock Broking
PPM
Tax Plannning
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 Bonds/F.D.s. The least
awareness was found for Stock broking And PPM i.e. 3% each.
40
2) Awareness of Sharekhan
YES
NO
Our sample size was 75, and it was found that only 75% were aware about
Sharekhan & 25% are not aware of Sharekhan.
25
12
13
8
25. 22%
17. 15%
20. 17%
3. 3%
Magazines
10. 9%
Newspaper
10.
TV 9%Radio
Agents
Franchise
Hoardings
Refrence
20. 17%
10. 9%
42
5) Interested In Investment
33. 33%
Yes
67. 67%
No
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
3. 3% 7. 7%
27. 27%
Insurance
Mutual Funds
30. 30%
Bonds/FD
Tax Planning
PPM
20. 20%
Stock Broking
13. 13%
Out of sample unit 150, the percentage of people interested in different areas
was as follows:
Tax
Planning-30%,
Mutual
Funds-27%,Insurance-20%,Bonds/F.D.s-
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 thats why they invest in
insurance sector.
44
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.
45
For tax Planning 75% of the people said that it helps in tax saving, while 25%
said that it is very safe.
46
58% of the people said that Bonds help in Tax Saving while 43% were of the
view that it helps in building capital.
47
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.
48
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.
49
Number of people
50
40
30
20
10
0
20%&above
15-20%
10-15%
5-10%
Financial Services
Annual income
5-10%
10-15%
15-20%
20%& above
Total
Tax planning
10
15
15
45
Mutual funds
10
15
10
05
40
Insurance
08
08
10
04
30
Bonds/FD
05
10
05
20
Stock Broking
05
05
10
PPM
03
02
05
50
40
30
20
10
0
Jan-Mar
April-June
July-Sep
Oct-Dec
Months
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.
51
yes
35%
no
65%
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.
52
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 Plannings
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.
53
54
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 weight age on this concern.
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.
55
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 their 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 its USP (Unique Selling Proposition).
56
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.
57
LIMITATIONS
1) The survey and research has been done only in Asansol & Durgapur,
therefore the results show the market position of Asansol & Durgapur
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 their response depending on whether they are
satisfied or dissatisfied.
5) First limitation of this project is the very short time limit.
6) A portion of the respondents are not cooperative.
7) The researcher is inexperienced.
8) Biasness or prejudice of some of the respondents regarding any sort of
the information which is required for such study.
9) Not much of importance was attached to this task by some of the
Respondents.
58
10)
11)
BIBLIOGRAPHY
59
A)
BOOKS:
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/
61
ANNEXURES
QUESSTIONAIRE
Name: ------------------------------------------------------------------------------Gender
: --------------------------------------------------------------------------
b) Mutual Funds
c) Bonds /FDs
e) Tax Planning
d) Stock Broking
g) None of the
above
h) Any other (Plz specify);__________________________
b) No
c) ICICI
e) Agents
f) INDIABULLS
62
a) ENAM
d) Karvy
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
b) No
b) Mutual Funds
c) Bonds /F.D
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
plannings
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%
b) Mutual Funds-
1) 5-10% 2) 10-15%
3) 15-20%
c) PPM
1) 5-10% 2) 10-15%
3) 15-20%
d) Bonds / F.Ds
1) 5-10% 2) 10-15%
3) 15-20%
e) Tax Funds
1) 5-10% 2) 10-15%
3) 15-20%
63
b) April June
c) July September
d) October-December
b) No
Q11) If yes, what all services would you expect from the Consultancy?
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
64