EXECUTIVE SUMMARY:-

The project titled “AWARNESS OF MUTUAL FUND AND ITS SCOPE” being carried out
for INDIA BULLS SECURITIES LTD.

India bulls operates in various financial products and services like Consultancy, Stock Broking,
Mutual Funds, Insurance, Registrar and Transfer Agent, Research, Mapin etc.

The evaluation of financing planning has been increased through decades, which is best seen in
customer rise. Now a day’s investment of saving has assumed great importance.

According to the study of the Market, it is being observed that markets are doing well in
investments like, Mutual funds, Shares etc. In near future a proper financial planning is required
to invest money in all type of financial product because there is good potential in market to
invest.

The main objective of this project is to know the current scenario of investment and the people’s
awareness of various instruments available for Tax planning and Personal Financial Advising
facility provided by the INDIA BULLS SECURITIES LTD.

IT and Retail sector have been given more emphasis for the study of the project because it is
the only sector where all types of age group, Income class and different level of people are
represented.

1.1 About the Company

Indiabulls is India’s leading Financial Services and Real Estate company having over 640
branches all over India. Indiabulls serves the financial needs of more than 4,50,000 customers
with its wide range of financial services and products from securities, derivatives trading,
depositary services, research & advisory services, consumer secured & unsecured credit, loan
against shares and mortgage & housing finance. With around 4000 Relationship Managers,
Indiabulls helps its clients to satisfy their customized financial goals. Indiabulls through its group
companies has entered Indian Real Estate business in 2005. It is currently evaluating several
large-scale projects worth several hundred million dollars.1

“Indiabulls Financial Services Ltd is listed on the National Stock Exchange, Bombay Stock
Exchange and Luxembourg Stock Exchange. The market capitalization of Indiabulls is around
USD 6,300 million (31st December, 2007). Consolidated net worth of the group is around USD
905 million (31st December, 2007). Indiabulls and its group companies have attracted more
than USD 800 million of equity capital in Foreign Direct Investment (FDI) since March 2000.
Some of the large shareholders of Indiabulls are the largest financial institutions of the world
such as Fidelity Funds, Goldman Sachs, Merrill Lynch, Morgan Stanley and Farallon Capital.

Business of the company has grown in leaps and bounds since its inception. Revenue of the
company grew at a CAGR of 159% from FY03 to FY07. During the same period, profits of the
company grew at a CAGR of 184%.2

Indiabulls became the first company to bring FDI in Indian Real Estate through a JV with
Farallon Capital Management LLC, a respected US based investment firm. Indiabulls has
demonstrated deep understanding and commitment to Indian Real Estate market by winning
competitive bids for landmark properties in Mumbai and Delhi.”

1.2 Indiabulls – Growth story

1
Indiabulls Securities Ltd (http://www.indiabulls.com)
2
http://www.indiabulls.com/home/aboutindiabulls.htm
The growth story of Indiabulls Company from its inception (year 2000) to the demerge of
Indiabulls Securities Limited from Indiabulls Financial Services Ltd. (year 2007) is mentioned in
an easily understandable way:

2000-01 Indiabulls Financial Services Ltd. established India’s one of the first trading
platforms with the development of an in house team.

2001-03 Indiabulls expands its service offerings to include Equity, F&O, Wholesale Debt,
Mutual fund, IPO distribution and Equity Research.

2003-04  Indiabulls ventured into Insurance distribution and commodities trading.

 Company focused on brand building and franchise model.

 Indiabulls came out with its initial public offer (IPO) in September 2004.
2004-05  Indiabulls started its consumer finance business.
 Indiabulls entered the Indian Real Estate market and became the first
company to bring FDI in Indian Real Estate.
 Indiabulls won bids for landmark properties in Mumbai.

 Indiabulls has acquired over 115 acres of land in Sonepat for residential
home site development.
 Merrill Lynch and Goldman sac, one of the renowned investment banks in
2005-06
 the world have increased their shareholding in Indiabulls.
 Indiabulls is a market leader in securities brokerage industry, with around
31% share in online trading.
 Farallon Capital and its affiliates, the world’s largest hedge fund committed
Rs. 2000 million for Indiabulls subsidiaries
 Steel Tycoon Mr. LN Mittal promoted LNM India Internet venture Ltd.
acquired 8.2% stake.

 Indiabulls entered in a 50/50 joint venture with DLF, Kenneth Builders &
Developers (KBD). KBD has acquired 35.8 acres of land from Delhi
Development Authority through a competitive bidding process for Rs 450
crore to develop residential apartments.
 Indiabulls Financial Services Ltd. is included in the prestigious Morgan
Stanley Capital International Index (MSCI).
2006-07
 Farallon Capital has agreed to invest Rs. 6,440 million in Indiabulls
Financial Services Ltd.
 Indiabulls ventured into commodity brokerage business.
 Indiabulls has received an “in principle approval” from Government of
India for development of multi product SEZ in the state of Maharashtra.
 Dev Property Development plc. has subscribed to new shares and has also
acquired a minority shareholding from the Company.
 Indiabulls Financial Services Ltd. Board resolves to Amalgamate and
demerge Indiabulls Securities Limited.
Source: Indiabulls Securities Ltd.

1.3 Indiabulls Securities Ltd Organizational Structure

Source: Indiabulls Securities Ltd

1.4 Hierarchy At Paradise office

Indiabulls Securities Ltd hierarchy at the Paradise branch, Hyderabad shows like this:
 A

Vice President

Branch Sales Manager

Associate Vice President

Relationship Manager

Senior Relationship Manager

The bottom of pyramid constitute for the sales and promotions of the company. The main work
of the Senior Relationship Managers (SRMs) and Relationship Managers (RMs) are to attract
the new investors, retain the existing investors and provide them necessary guidance and
services that includes recommendations/tips, account information, check pick-up/courier, trading
for the investors (offline trading) etc.
2.1 Product of Indiabulls Securities Ltd.
The different types of services offered by Indiabulls are:

 Stocks, Options and Futures

 Depository Services

 Commodities

 Insurance Products

 Mutual Funds

 Bonds and Debt Products.

The company offers demat and trading account that can be linked with maximum three bank
accounts for a single investor. The company has tie-ups with the following banks for its
operations:
 HDFC Bank
 ICICI Bank
 Standard Chartered Bank
 Citi Bank
 HSBC Bank
 Kotak Bank
 Punjab National Bank
 State Bank of India
 Axis Bank
 ABN-AMRO Bank
 Centurion Bank
 Yes Bank Ltd.
 A/C Opening Charges: Rs 900/-
 Annual Maintenance Charges: NIL
 Minimum Balance in Trading A/C: NIL
 Trading Channels: Both Online and Offline Trading available.
 Brokerage Charges:
  Intra-day: 5 paisa
 On Delivery: 50 paisa
Note: The charges mentioned above are negotiable.
Additional installation (optional): Power IndiabullsTM software
Indiabulls.com has developed an online share trading system that is truly user-friendly, operates
on a real-time basis and guarantees the highest degree of Internet security. The trading system is
supplemented by a rich reservoir of information and analyses on a range of personal finance
products and investing options. The site also provides stock charts with technical analyses. The
one-time charges for installing the software and creating the user id is Rs 750/-.

Features of Power IndiabullsTM:

 Live Streaming Quotes

 Fast Order Entry
 Tic by Tic Live Charts
 Technical Analysis
 Live News and Alerts
 Extensive Reports for Real-time Accounting

2.2 Indiabulls advantage

 Comprehensive Financial Services – As an Active trader, the investor will have the
tools, resources and support you need to execute the trading strategy, plus the choice of a
wide range of investment products and services.

 Access to Indiabulls Equity Analysis – Being a trader with Indiabulls Securities Ltd.,
the investor will have access to the equity analysis of the company. The e-mails including
the research reports prepared by Research and Development Team of Indiabulls will be
sent to the investor’s email address.

 Dedicated Support and Services – The investors enjoy priority access to Relationship
Managers who are dedicated to support the trading and investing needs of the investors.

Number of branches in Hyderabad city: 6

 1. Banjara Hills Branch
2. Paradise Branch
3. Dilsukh Nagar Branch
4. Goshamahal Branch
5. Habsiguda Branch
6. Madhapur Branch

In the Habsiguda branch, only online trading is done. In other five branches available in
Hyderabad, trading via both the methods i.e. online and offline are done.
2.3 Comparative Analysis of Brokerage Firms:
The following table shows the comparative analysis of the various broking firms based on our
observations :
(*DT= Fee includes demat and trading account, D=Fee includes only demat account, T=Fee
includes only trading account, AMC=Annual Maintenance Charges (incurs each year),
XXX=Data not available and needs to be collected.)

The Minimum Balance in the trading account for India Infoline and Sharekhan are Rs
2000 and Rs 5000 respectively. However, it is NIL for the other brokerage firms.

Table 1

S. Name of the Brokerage Estd Branches A/C Opening

No. company (negotiable) . in Charges (in
Hyderabad Rs)
Intraday Deliver
y
1. INDIABULLS 0.1 0.5 2000 5 DT=900
SECURITIES
2. INDIA INFOLINE 0.05 0.5 1995 9 DT=555
3. SHAREKHAN 0.1 0.5 xxx 2 DT=375
4. KOTAK SECURITIES 0.05 0.45 1994 1
5. ICICI DIRECT 0.5 0.75 1993 xxx DT=750
6. RELIANCE MONEY 0.xxx 0.xxx xxx 3 DT=750
7. WAY2WEALTH 0.05 0.5 2000 8 DT=800
8. ANAGRAM FINANCE 0.05 0.5 xxx xxx D=450
T=200
AMC=300
9. MOTILAL OSWAL Xxx xxx 1987 6
10. ANAND RATHI 0.03 0.3 1994 4 D=436
 SECURITIES T=299
AMC=299
11. KARVY 0.03 0.3 1983 27
12. UNICON STOCK 0.03 0.3 xxx 2 D=200
BROKING T=1000
AMC=450
13. ANGEL BROKING 0.03 0.3 2004 3 DT=375
AMC=500
14. ALANKIT HOUSE 0.03 0.3 1995 1 DT=562
15. GEOJIT SECURITIES 0.03 0.3 1987 11

Advantages of Opening a Demat account with Indiabulls:

No Annual Maintenance Charges.

Excellent value added service by Relationship Mangers.
Normal Brokerage charges. If the client is ready to invest more with Indiabulls
then brokerage charges are bought to as low as 0.01% - Intraday & 0.1% -Delivery (cash)
User friendly software (Power Indiabulls).39
Marginal trading.
Figure 4
 PORTER’S FIVE FORCE ANALYSIS

1. Threat of Entry:
The threat of new entrants presents the possibility that new firms (entry of foreign players) will
enter the industry and diminish industry returns by passing along value to buyers in the form of
lower prices and raising the cost of competition. New forms of trading including T+2 settlement
system, dematerialization etc are strengthening the brokerage market and attracting foreign
companies to enter the Indian industry.

2. Threat of Substitutes:
The second factor affecting industry competition is the availability of substitutes. The relative
price of substitutes and the buyer propensity to substitute have effects on the industry. Brokerage
firms increasingly face substitutes in the form of real estate, moneymarket funds, and insurance.
Substitute products take on added importance as their availability increase. Various alternative
forms of investment including fixed deposits with banks and post offices etc; act as substitutes to
broking products and services. The main substitute for brokerage industry is mutual fund
industry.

3. Supplier Power:
Factors relating to the bargaining power of suppliers include the threat of forward integration and
the concentration of suppliers in the industry. There is a growing dependence of corporate on
broking houses with the rising number of IPO’s coming to the market.

4. Buyer power:
The fourth competitive force is the bargaining power of buyers. If significant buyer power exists,
industry returns can accrue to buyers in the form of lower prices. Buyer power is determined by
switching costs, the relative volume of purchases, the standardization of the product, elasticity of
demand, brand identity, and quality of service. Investors often lack the knowledge and expertise
in the financial sector that calls them to approach the broking houses. The broking services
provided by the various companies are homogeneous with very low product differentiation. This
allows customers to enjoy a greater bargaining power.
5. Rivalry:

Rivalries naturally develop between companies competing in the same market. Competitors use
means such as advertising, more attractive customer service and price competition to enhance
their standing and market share in a specific industry. Lots of brokerage companies are moving
towards consolidation with the smaller ones becoming either franchisees for the larger brokers or
closing operations. Various foreign banks like ABN Amro and others are planning to enter the
Indian retail brokerage industry. There is an increasing demand for online trading due to
consumer’s growing preference for internet as compared to approaching the brokers.
2.5 Marketing of Indiabulls Products

EXHAUSTIVE SALES PITCH For marketing of Demat Accounts:

1. Acquiring Contacts –

The first and the foremost thing in sales is to acquire the contacts.The contacts can be acquired
from the following sources –

• Company Personnel – The contacts given by company personnel can be of extreme help. The
leads provided by Sr. Relationship Manager are very useful because they have very good
experience in the industry and their contacts with people from other industry are also good. E.g.
a Sr. Relationship Manager having contacts with a bank official can help to provide some good
leads.
• Personal Network – The contacts can also be gathered from personal network. Contacts from
families, friends and known sources are much easy to contact and convince as compare to
contacts from any other sources.
• Other Sources - Contacts can also be gathered from various other sources. Contacts can be
gathered from internet, yellow pages etc.

2. Preparing Perspective Clients Log –:

The next step is to give preferences to contacts gathered. Contacts should be properly sorted out
for calling purpose. E.g. if we are approaching the weekend then it is better to sort out those
clients first who are into service because they are busy to fix an appointment during weekdays.
It is also required to call a limited number of people at a particular time and fix an appointment
accordingly because too many appointments can also result in inefficiency.
3. Making Calls
The next and the main step are to call the database sorted out. During this stage it is required to
tell the client that we have been calling on behalf of India bulls and this is in relation to Demit
and Trading a/c.
If the client says that he already has a Demat a/c then we need to ask that with which company
he is having a Demat a/c and try to tell the advantages of opening a Demat a/c with Indiabulls as
compared to the Demat a/c he is having at present.
If the client says that he is not having the Demat a/c then briefly telling about the offerings and
try fixing an appointment with the client.
If the client says that neither he is having any Demat a/c nor he wishes to have one now then
ending the conversation and saving that contact in the database and trying to contact him again in
future when market is good or is in bullish phase to see that if he is interested now to open the
a/c or not.
4. Approaching the Client
When the client agrees for an appointment then we need to follow Customer Centric
Approach. We need to do our homework before approaching the client. We need to collect all
the basic information about the industry in which the client is. E.g. if the client is in steel sector
then we need to collect the basic information related to steel sector so that we can talk to him
related to his field.
We also need to tell the client that how the customer can get good returns by investing in certain
stocks and what is the current position of the stocks in which he is interested in. Then it is
required to tell the offerings which Indiabulls would be giving to him when he opens the Demat
a/c. At this stage it is also required to tell the advantages of Indiabulls in
comparison to other players in the market.

Preparation Of Indiabulls Presentation:

There were many clients who wanted to know about the products of Indiabulls but due to the
lack of time they were unable to give time to us. A presentation giving the information about the
various products was prepared which gives a basic idea to the client about indiabulls.
The presentation was shown to our guide Mr. Aatish Gupta and after his approval it was sent to
the various clients.

Advertising and Promotion:

As a first step towards generating a client database , we set up a canopy in Hi-Tech city opposite
the cyber towers.

We interacted with a lot of people , mostly IT professionals who were very aware of the Stock
market but very few were interested in opening an account with Indiabulls securities.
We were able to generate 20 good responses who were willingly interested in knowing about
Indiabulls and the various plans that’s indiabulls had. The following up with these clients is
still going on.
We analysed that the the clients in these segements were mainly the customers of ICICI direct
and were more or less satisfied with the services of ICICI. They were aware of the High
Brokerage charges levied by ICICI and still did not want to change brokers. Bringing these
clients to Indiabulls by pitching on the advantages of Indiabulls is the greatest challenge for
Indiabulls.
Another thing which we analyzed that the awareness of India bulls among this segment is pretty
low because of the lack of advertisement and promotion done by Indiabulls.Steps like
promotional campaigns must be done to increase the awareness.
The following flowshart shows the procedure for marketing of indiabulls products:

Start

Other Company Personal

References Personnel Contacts

Perspective Log

Positive Negative
Positive Making Calls

Response

possitive negative

Fixing an Ending the

Appointment Conversation

Response
Saving the data
for the future

Stop
Telling him about the products

Completing the formalities and

closing the deal