Summer Training Project Report

on

COMPARATIVE ANALYSIS OF
INVESTMENT OPTIONS
AVAILABLE IN THE MARKET
AND CUSTOMER BUYING
PREFERENCE
Project Report submitted by:

PRAKHAR SRIVASTAVA
2011MB34

PROJECT CONCLUDED
AT:

HAZRAT GANJ BRANCH, LUCKNOW

Submitted in partial fulfillment for the Award of degree of
Master of Business Administration

SUBMITTED BY: -

SUBMITTED TO:-

PRAKHAR SRIVASTAVA
2011MB34
MBA 3RD SEM

DR. PEEUSH RANJAN AGRAWAL

(HEAD OF DEPARTMENT)

Academic Year
2012-2013

OBJECTIVES OF THE PROJECT

To understand all about different investment avenues available in India.

To find out how the investors get information about the various financial
instrument
To find out how the investor wants to invest i.e. on his own or through a broker.
To find out the saving habits of the different customers and the amount they
invest in various financial instruments.
In which type of financial instrument they like to invest.
How long they prefer to keep their money invested.
What is the return that they expect from the investment?
What are the various factors that they consider before investing?
To find out the risk profile of the investor.
To give a recommendation to the investors that where they should invest.
To give a suggestion to the company where its funds lack in the market & how
it should be rectified.
After all as a management trainee I will try to get some valuable knowledge
from my seniors in the organization as well as from my faculty guide which will
help me in the future.
To evaluate the consumer attitude towards saving and decision making
regarding investments.

LIMITATIONS OF THE
STUDY

Total number of financial instrument in the market is so large that

it needs a lot of resources to analyze them all. There are various
companies providing these financial instruments to the public.
Handling and analyzing such a varied and diversified data needs a
lot of time and resources.
As the project is based on secondary data, possibility of
unauthorized information cannot be avoided.
Reluctance of the people to provide complete information about
them can affect the validity of responses.
Due to time and cost constraint study will be conducted in only
selected area of Lucknow.
The lack of knowledge in customers about the financial
instruments can be a major limitation.
The information can be biased due to use of questionnaires.

INTRODUCTION
TO THE
INDUSTRY

 The Stock Exchange, Mumbai, popularly known as

"BSE" was established in 1875 as "The Native
Share and Stock Brokers Association".
It is the oldest one in Asia, even older than the
Tokyo Stock Exchange, which was established in
1878
It is the first Stock Exchange in the Country to
have obtained permanent recognition in 1956
from the Govt. of India under the Securities
Contracts (Regulation) Act, 1956.

NSE (NATIONAL STOCK EXCHANGE)

NSE was incorporated in 1992 and was given
recognition as a stock exchange in April 1993. It
started operations in June 1994, with trading on
the Wholesale Debt Market Segment.
It has been playing a leading role as a change
agent in transforming the Indian Capital Markets
to its present form.
The Indian Capital Markets are a far cry from what
they used to be a decade ago in terms of market
practices,
infrastructure,
technology,
risk
management, clearing and settlement and
investor service.

INTRODUCTION TO

 KARVY, is a premier integrated financial services provider,

and ranked among the top five in the country in all its
business segments, services over 16 million individual
investors in various capacities, and provides investor
services to over 300 corporate, comprising the who is who
of Corporate India.
The birth of Karvy was on a modest scale in 1981. It began
with the vision and enterprise of a small group of
practicing Chartered Accountants who founded the
flagship company.
KARVY with the help of highly qualified manpower, cuttingedge technology, comprehensive infrastructure and total
customer-focus has secured for the position of an
emerging financial services giant enjoying the confidence
and support of an enviable clientele across diverse fields
in the financial world.

MILESTONES

ACHIEVEMENTS

Among the top 5 stock brokers in India (4% of NSE volumes)

India's No. 1 Registrar & Securities Transfer Agents
Among the top 3 Depository Participants
Largest Network of Branches & Business Associates
ISO 9002 certified operations by DNV
Among top 10 Investment bankers
Largest Distributor of Financial Products
Adjudged as one of the top 50 IT uses in India by MIS Asia
Fully Fledged IT driven operations

MAJOR AREAS OF OPERATIONS

Karvy
Karvy
Karvy
Karvy
Karvy
Karvy
Karvy

Consultants Limited
Stock Broking Limited
Investors Services Limited
Computershare Pvt. Limited
Global Services Limited
Comtrade Limited
Insurance Broking Private Limited

INTRODUCTION
TO THE TOPIC

TYPES OF INVESTMENT OPTIONS

AVAILABLE IN THE MARKET

Mutual Funds
Bond/IPOs
Insurance
Fixed Deposits
Govt. Securities
Real Estate
Commodities

RESEARCH
METHODOLOGY

RESEARCH OBJECTIVE

COMPARATIVE
ANALYSIS
OF
INVESTMENT
OPTIONS AVAILABLE IN THE
MARKET IN ACCORDANCE WITH
THE
CUSTOMER
BUYING
PREFERENCE and their potential

To

analyze

the

market among the people of Lucknow City.

SAMPLING DESIGN
Sampling Area
Sample Population
Sample Size
:

Lucknow city
: above 15,000
100

METHODS

The method used in the research (survey) is of

probability type as we are unaware about the results.
It can be either of the side. It is area of Lucknow city
under which we have to conduct the research.
The research is based on Convenience Method s. and
the take the sample from to various stock broking
company.

RESEARCH DESIGN

Research
: Descriptive & Objective
Data Source
: Primary data
Research Method
: Survey Method
Research Technique : Questionnaire
Type of Questionnaire : Structured
Type of Questions
: Closed & Open ended
Questions
No of Questions
: 15

DATA
ANALYSIS

Ques 1. Do you know about the following Financial Instrument?

Response Rate

100 92
90
80
70
60
50
40
30
20
10
0

76

76
54

54

62

56

Ques 2. How do you get information regarding these Financial Instruments?

60
50
40
30
20
Response Rate

10
0

Ques 3. Ratings of Investment options as per the customer's preference

3

1
Scale of preference
0

Ques 4. Do you invest in Financial Instruments?

90
80
70
60
50
Response Rate

40
30
20
10
0
Yes
No

Ques 5. Where do you invest your savings?

80
70
60
50
40
30
Response Rate

20
10
0

Ques 6. What are the factors which you consider while investing in any Financial Instrument?
70
60
50
40
Response Rate

30
20
10
0
Return (capital appreciation)
Regular income flow

Ques 7. On what basis you will invest in any particular Financial Instrument?
Response Rate

50
45
40
35
30
25
20
15
10
5
0

Ques 8. How will you invest your money in any Financial Instrument?
60
50
40
30
20
Response Rate

10
0

Ques 9. How long you prefer to keep your money in any Financial Instrument?
50
45
40
35
30
Response Rate

25
20
15
10
5
0
Less than 6 months
1 year to 3 year

Ques 10. If you select a broker or agent then which broker company would you select?
60
50
40
30
Response Rate

20
10
0

Ques 11. What influences you to invest your amount?

Response Rate

90
80
70
60
50
40
30
20
10
0

Ques 12. Which of these would you like to be trading in?

70
60
50
40
Response Rate

30
20
10
0
Equity

Derivatives

Commodities

Ques 13. Which are the constraints that you might consider while investing?
70
60
50
40
30
20
10
0
Response Rate

Ques 14. How much return you expect from any Financial Instrument?

Response Rate

50
45
40
35
30
25
20
15
10
5
0

Ques 15. Will you invest your money for saving the Tax in any Financial Instrument?
80
70
60
50
Response Rate

40
30
20
10
0
Yes
No

FINDINGS
This is probably the most important question of
the questionnaire; the result of this question is
that most of the people think of (RISK TAKING
ABILITY) because it is the most crucial constraint.
Next comes is the facilities given to them under
the funds and also the ROI (return on
investment). There are other factors also like time
duration of their investment and Company
reputation in the market.

RECOMMENDATIONS
Mutual Funds can also be offered as they have high
risk profile. Company should take initiative to get
demat account of these customers.
The age group of 41-50 years, investors are from the
15,000-20,000 Rs disposable income group. Investor
in this group are invested in Insurance sector, the
primary focus of these investors are retirement and
time horizon is likely to be 6-9 years. This is also good
potential group for the retirement plan in ULIPs. Fixed
deposits can be a good option for them.
In the survey there were lot of people who were in the
age group of above 60. For this group of people the
company can target Fixed deposits which gives
continues return like monthly interests so that they
can keep on getting returns.

SUGGESTIONS
Return on Investment is must but the risk also
should be minimizing at the same time.
No one loves to lose his hard earned money
therefore it should be invested in safer place.
Services are must for them and therefore the
company must also concentrate on this aspect.
Good advisory services, secrecy of the data given
to the company as well as every people must
treated as they all are equal i.e. no biasness.
Charges of the services provided to them should
be reasonable and viable.

CONCLUSIONS

Karvy has enough number of branches all over India and

therefore it is a great advantage for the company and the
company also planning to expand its network.
Karvy also provides the facility of trading in almost all the
exchanges and therefore whatever the customer demands
the company has in its package.
The company also has a very good research team at its
Head Office and this is meant for the better working as well
as for the customer of Karvy only.
The company also has the advantage of the existing
customers where their level of faith and their view about
the company to the outside world will be a helping hand for
the company to expand its business.

REFERENCES

(n.d.). Business Today.

(n.d.). The Economic Times.
(n.d.). The Mint.
(n.d.). Karvy Finapolis.
Aswathapa, K. (n.d.). 3rd edition "Human Resource and Personnel
Management". New Delhi: Tata McGraw-Hill Publishing Company
Ltd.
Cooper. (n.d.). 8th Edition "Business Research Methods". New
Delhi: Tata McGraw-Hill Publishing Company Ltd.
Kotler, P. (n.d.). The Millenium Edition "Marketing Management".
New Delhi: Prentice Hall of India Pvt. Ltd.
www.karvy/about.asp. (n.d.).
www.bseindia/about.asp (n.d.).
www.nseindia.com (n.d.).
www.mcx.com (n.d.).
www.ncdex.com (n.d.).

THANK
YOU!