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Submitted In Partial Fulfillment for Requirements of the Award of Degree of BUSINESS ADMINISTRATION To KURUKSHETRA UNIVERSITY (Session 2011-2013)
Under The Supervision Of: (Sales Manager)
Tufail Ahmad Khan ROLL NO. 73117102 MBA (3rd SEM) Batch: 2011-2013
STUDENT DECLARATION 1
I TUFAIL AHMAD 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 (Sales Manager unicon investment solution) 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 Kurukshetra University, Kurukshetra or any other University for the purpose of compliance of any requirement of any examination or degree. DATE: PLACE: TUFAIL AHMAD KHAN MBA (2011-2013) ROLL NO. 73117102
At the very beginning, I wish to render my deep sense of gratitude with special thanks and due regard to (Sales 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 Mr. Madhur Raj Jain (HOD of Management) 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.
TUFAIL AHMAD KHAN
Chapter Chapter-1 Chapter-2 Chapter-3 Chapter-4 Chapter-5 Chapter-6 Chapter-7 Questionnaire Bibliography 53 55 Conclusion Recommendation Limitation 48 51 52 Object of this Study Research Methology Data Analysis 37 38 39 Financial Sector Industry Profile Company Profile 6 10 28 Topic name Executive Summary Page No. 5
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.
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.
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 2011 were 87963cr. 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 activity. Larger banks will be able to mobilise sufficient capital to finance asset expansion and fund investments in technology.
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. • 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 capitalization from US$ 40 billion in 19901991 to US$ 203 billion in 1999-2000. The stock exchange has about 5,133 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.
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: • 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 2,91,605 crore for 2010-11. • There are four public sector and 15 private sector insurance companies operating in general/non-life insurance business with a premium income of over (Rs 23.13 billion) in January 2012 • 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. • 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.
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. 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 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 liberalization. One aspect of this is financial liberalization. There is a move towards privatization of nationalized banks – these banks are selling their shares in the stock market. 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 liberalization. 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 liberalization in the less developed countries (LDCs). In the pro-liberalization 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 positive relationship (see also Levine, 2001). Henry (2000) studied a sample of 11 LDCs and observed that stock market liberalizations lead to private investment boom. Recently, Bekaert et al (2005) analyzed data of a large number of countries and observed that the stock market liberalization ‘leads to an approximate 1 % increase in annual real per capita GDP growth’. There are some economists who are skeptical. 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 industrialization of Japan, Korea and Taiwan. He argued that the recent move towards stock market liberalization is ‘unlikely to help in achieving quicker industrialization 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.
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 forces 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. A liberal and transparent financial policy has affected 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 12
Reliance Industries Limited, Infosys, Tata, Birla Corporation, Jet Airways, Ranbaxy, Biocon, Bajaj Auto, and ICICI are breaking their own records every financial year.
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 take 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 populations 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 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.
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.
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.
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 ‘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) (2) Asset based / Fund based services. Fee based / Advisory services.
The important fund based services include: • • • • • • • • • • • • • • • Equipment Leasing /Finance. Hire- Purchase and Consumer Credit. Bill Discounting. Venture capital. Housing Finance. Insurance Services. Factoring etc. Issue Management. Portfolio Management. Corporate Counseling. Loan Syndication. Merger and Acquisition. Capital Restructuring. Credit Rating. Stock Broking and so on.
The fee based/ advisory services include:
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. 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.
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. 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 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 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.
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 decision 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.
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. The creation of IMGC will: 20
• 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 (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.
Credit risk management in the Indian context means the housing finance company has to develop certain in-house/local standards for measurement of a borrower’ 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 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 securitizing to one of the larger players. As a result, these players will book the revenues (processing fees) upfront and thereafter
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.
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 2011 and 2012
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 'US64' 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 23
funds such as Templeton, 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. 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 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 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. 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 tim e 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.
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 2012. 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. 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.
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 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 corporate. 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.
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.
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 Mr. Vijay Chopra National Head (Business Alliances) Mr. Anurag Nayar Chief Technology Officer Mr. Ashish Kukreja Head HNI Client Relations Ms. Divya Varma Kaur Head -HR & Training Mr. Sandeep Mahajan Head (Equity Broking-Offline
Unicon Tie up with various insurance companies: 1. Tata life insurance 2. SBI life insurance 3. Max life insurance 4. Reliance 5. Birla sun life 6. Life insurance corporation of India 7. Kotak Mahindra 8. Met life 9. ICICI prudential
Facilities Offered by Unicon * De-materialization: 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: You can view your demat account over the Internet and avail a host of services. This facility empowers our clients to view, download, and 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, and 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. 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.
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 Income schemes Balanced schemes Money market schemes 3. By Other Schemes Tax saving schemes Special schemes Index Schemes Sector specific schemes
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. 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 Investment Banking Overview The Investment Banking arm of Unicon Capital Services (P) Ltd. caters to the funding requirements of corporate. 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 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+ manyears 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:
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
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. India bulls, Share khan, Indiainfoline, Religare, Alan kit, 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
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 150 respondents using a schedule of question and a survey was conducted. The tabular and graphical data was Microsoft excel.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.
1. Preference of investment
Fig. 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. Preference of investment Derivatives Share Mutual Fund Bond Total Respondents 9 12 105 24 150 In % 6% 8% 70% 16% 100%
2 Awareness on Online Share Trading
Fig. 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. Result of Awareness of Online Share Trading Online Share Trading Yes No Total Respondents 108 42 150 In% 72% 28% 100%
3. Awareness of unicon investment solutions
Fig. 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. Result 0f Awareness of unicon as a brand:
Awareness of unicon as a
Yes No Total
4. Awareness of unicon facilities
20% No 80% Yes
Fig. 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.
Awareness of unicon facilities
Awareness of unicon facilities Respondents In%
Yes No Total
5. Satisfaction Level among Customers with current broker
Fig. 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. satisfaction level among customers with current broker: Satisfaction level Yes No Total Respondents 108 42 150 In% 72 28 100%
6. Frequency of Trading
D a ily1 0 %
Y early 12%
Monthly5 2 %
Fig. 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. In Table Result of Frequency of Trading Frequency of Trading Daily Weekly Monthly Yearly Total In % 10% 26% 52% 12% 100% Respondents 15 39 78 18 150
7.Percentage of earnings invested in Share Trading
Upto2 5 % ,1 8 %
Upto 50% ,8%
Upto1 0 % ,7 0 %
Fig. 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. Show the Table PERCENTAGE OF EARNINGS INVESTED IN SHARE TRADING: PERCENTAGE OF IN% EARNINGS INVESTED IN SHARE TRADING Up to 10 % 70 Up to 25% 18 Up to 50% 8 Above 50% 4 Total 100% 8. Rating these share trading companies This table show the company Rating Company name Rating RESPONDENTS
105 27 12 6 150
Reliance money ICICI Direct India Bulls IL &FS Investmart Other 9. which company do you have your DEMAT account?
1 3 2 4 5
company do you have your DEMAT account? Demat account Respondent Unicon 60 ICICI 33 Reliance 30 India Bulls 15 Other 12 Total 150
In % 40% 22% 20% 10% 8% 100%
10.Are you Aware of DEMAT Account?
The above table clearly show that from a sample size of 150 respondents, 120 individuals aware of demat account. were
The basic purpose of this Question is to know about awareness of demat account among respondents. Aware of DEMAT Account: Responses Number of Responses % of Responses Yes No Total 120 30 150 80 20 100%
11. Are You Satisfied with your demat service provider?
This graph shows that most of the people were satisfied with demat service provider. Responses Yes No Total Number of Responses 135 15 150 % of Responses 90% 10% 100%
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. 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. UNICON INVESTMENT 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. Rs 750 account opening charges are too high when targeting a corporate so the company should be flexible on this amount. 6. UNICON INVESTMENT 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.
KEY ISSUES AND CONCLUSIONS 48
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, UNICON INVESTMENT 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.
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 that 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.
Large untapped market: 49
• 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 quity 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.
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. Lastly taking the feedback from customer so as to better tune its services with the customer needs.
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
Q1. In which of these Financial Instruments do you Preference of investment into? Shares Mutual Funds Bonds Derivatives
Q2. Are you aware of online Share trading? Yes No
Q3. Heard about UNICON INVESTMENT SOLUTION ? Yes No
Q4. Do you know about the facilities provided by UNICON INVESTMENT SOLUTION? Yes No
Q5. Are you currently satisfied with your Share trading company? Yes No
Q6. How often do you trade? Daily Weekly Monthly Yearly
Q7. What percentage of your earnings do you invest in share trading? Up to 10% Up to 25% Up to 50% Above 50%
Q8. How do you rate these share trading companies? a. Reliance money 1. 2. 3 b. ICICI Direct c. India Bulls d. IL&FS INVESTSMART e. Others (Please specify) 53
Q9. With which company do you have your DEMAT account? Reliance money Others Q10.Are you aware of DEMAT? Yes No ICICI Direct UNICON India Bulls
Q11. Are You Satisfied with your demat service provider? Yes No
Books • • • • Websites • • • • • www.unicon.co.in www.icicidirect.com www.UNICON INVESTMENT.com www.nseindia.com www.economicstimes.com Financial Management Prashanna Chandra,6th edition Financial Management Khan & Jain ,13th edition Securities Analysis and Portfolio Management ,Fischer & Jordon Research Methodology, David .R. Cooper and Schindler
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