You are on page 1of 104

NR Post Graduate Institute of Business Management Gujarat Technological University Master of Business Administration Program

Summer Internship Report

At Motilal Oswal Securities Ltd.

:Submitted By: JAYDEEPSINGH RAO Batch 2009-2011 Roll no # 00977



In Partial Fulfillment of the Project Study in Masters of Business Administration Programme of Gujarat Technological University
Submitted to: N.R.Institute of business management

Introduction PMS:

In today's complex financial environment, investors have unique needs which are derived from their risk appetite and financial goals. But regardless of this, every investor seeks to maximize his returns on investments without capital erosion. While there are many investment avenues such as fixed deposits, income funds, bonds, equities etc… It is a proven fact that Equities as an asset class typically tend to outperform all other asset classes over the long run. Investing in equities, require knowledge, time and a right mind-set. Equity as an asset class also requires constant monitoring may not be possible for you to give the necessary time, given your other commitments. We recognize this, and manage your investments professionally to achieve specific investment objectives and not to forget, relieving you from the day to day hassles which investment require. Motilal Oswal Securities Ltd brings with more than 2 decades of experience & expertise in equity research and stock broking. We are one of the leading portfolio service providers, with asset under management worth Rs. 590 Crores. When you invest through our PMS, you can be assured of the best research being used for the investment decisions. Our equity research has been consistently ranked very highly in surveys conducted by leading international publications like “Asia Money” and “Institutional Investor”.

2010. Focus on customer-first-attitude. research-based value investing and implementation of cutting-edge technology has enabled us to blossom into an almost 2000 member team. . mutual funds . Portfolio Management Services . Institutional Equities. 2010 we had 6. Investment Banking Services and Principal Strategies. respect for professionalism. Today we are a well diversified financial services firm offering a range of financial products and services such as Wealth Management .21.215 registered customers. financial institutions and corporate clients.COMPANY PROFILE Introduction: Motilal Oswal Securities Ltd.397 Business Locations operated by our Business Partners and us. with just two people running the show. ethical and transparent business practices. Commodity Broking. As at March 31st. foreign institutional investors. We are headquartered in Mumbai and as of March 31st. had a network spread over 584 cities and towns comprising 1. Private Equity . We have a diversified client base that includes retail customers (including High Net worth Individuals). (MOSL) was founded in 1987 as a small sub-broking unit. Broking & Distribution .

MOSL also gives a start-up kit comprising of glow sign skin.Business:Financial services. phone and emails and offers a centralized web-based back office access to the franchisee. Investment : Rs 5-10 lakhs. With a focus on research based advisory and superior customer experience.Markets and Network: Founded in 1987 as a small sub-broking unit. private equity. investment banking services and principal strategies. Employees Required : 4 . Franchise Facts Operational : 1987. RETURN ON INVESTMENT (Rol) : 20-200 % .293. institutional equities. MOSL hopes to add franchisees with a good track record and a reputation in financial services or social circles/other business/social circles with a good client base.ft. marketing brochures to help the franchisees in starting the business.Marketing and business development support on a regular basis. portfolio management services. MOSL gives marketing and sales support in which one relationship manager will be assigned to the franchisee for regular research advice and market updates through chat-phone-emails.Franchising : 1990. broking and distribution. MOSL is today recognized as a well diversified financial services firm. commodity broking. MOTILAL OSWAL SECURITIES LTD is expanding its reach multifold to address the needs of a latent market waiting to explode in the next trillion dollar GDP growth era. .Units : 1. visiting cards. Agreement : NA. The company also assigns a customer service executive for routine queries through chat. which offers a range of financial products and services such as wealth management. Area : 250 sq.

Data collection:  Primary data sources: Questionnaire survey of various respondents in Ahmadabad.OBJECTIVES OF THE STUDY: • • • To study different strategies of PORTFOLIO MANAGEMENT SERVICES of MOTILAL OSWAL SECURITIES LTD. STUDY INVESTORS AWARENESS FOR THE SAME 2) RESEARCH DESIGN : • DESCRIPTIVE RESEARCH 3) RESEARCH METHODOLOGY: Sources of Data Collection Primary data and Secondary data from Company and survey.  Secondary data sources: Data collected from various past surveys. . internet and journals. To explore the investors preferences towards Portfolio Management Services.

Company and Society. This project will provide a better insight to the individuals who want to gain knowledge about different INVESTMENT STRATEGIES of PMS.R. Data Collection (Secondary) – 3 Weeks. AHMEDABAD. Institute of Business Management. deciding methodology and design – 1 Week. . Report and Presentation preparation – 2 Weeks BENEFICIARIES: • • • • The Industry. This project will also be useful for the students for future references. He has completed his graduation from GUJARAT University. This project will be useful to the Companies who deal in PMS. RESEARCHER’S PROFILE: The researcher JAYDEEPSINGH is the Student of full time MBA program at N.4) TIME SCHEDULE • Analyzing research problem. Analyzing the findings – 2 Weeks.

I have shown different information. B. and analysis on the above mentioned topic. So. In this report. more demand of able and practical managers who are to solve the problem and face any kind of challenges.B.A. program they have to work hard and practical training or summer training is a part of their study. level the student are required to choose a subject of their own choice and they have to deeply research in the topic and prepare a detailed report of their project. . At M. As a student of M. nature. I have tried my best to make this report as much success as possible. These persons have different beliefs.PREFACE Today world become global village due to globalization economic development. solution. opinion. which has opened new avenue for development in the industrial area. which has given me something new than what I had got during last two semester of M. liberalization and e-commerce.B. A.A. So I choose the research on “To find out awareness and interest about PMS/EVALUATION OF PMS” This practical training has given me an existing marvelous experience of visiting different type of persons.

I am grateful to all of them who were a part of my hard work and would definitely be an inevitable part of my success.NISHSTHA ASRANI AND PROF. I would like to state that just as a positive attitude pays off. my hard efforts to bring this project to a successful end would also pay off. As I conclude. NEHA PATEL) as well as external guide (VIPUL RAMAIYA AND FOREM JANI) for guiding and inspiring me and taking me through my tough times. They played an important role in the successful completion of my project. I am grateful to my respected internal guide (PROF. Hard work and success are the two sides of the same coin. JAYDEEPSINGH RAO .ACKNOWLEDGEMENT Every project is a masterpiece of hard work and sincere efforts of all those who are involved in the project. I hope that this project would be one of the most significant stepping-stones of my career and would fulfill my aspirations in every aspect.

This project assigned me was initially to find out effective pool of respondents who are “STUDY ON PORTFOLIO MANAGEMENT SERVICES STRATEGIES AND INVESTORS AWARENESS AND PREFRENCE FOR IT “ To meet my objective I have selected a method of survey and it was by direct interview. Business Administration is his forte.EXECUTIVE SUMMERY The company was founded in 1987 as a small sub-broking unit. Mr. Motilal Oswal is the promoter of Motilal Oswal Securities Ltd. Raamdeo Agarwal in 1987. transparency and client goodwill form the core of his business practice PMS is nothing but Portfolio Management Service where a complement of experienced professionals invests your money in equity markets and other instruments. prior to survey my training was conducted by the company and then fieldwork started. with the solitary focus of growing your money at an appreciable rate. • In my research I found that maximum respondents agree that trust base investment gives good return 38% people favor it while others say that it does not give good return on investment • As per my survey I found that 40% of the respondents are aware about PMS. while 60% respondents do not aware about PMS . • In my survey I found that maximum of the respondents invest for the long term 77% while only 23% invest for the short period of time. with just two people running the show. He is a member of Institute of Chartered Accountants of India and started the business along with the co-promoter Mr. Honesty.

Table of Content • General Information • • • • • • • Introduction Driving Force Organization Structure MOSL History and Milestone End to End Equity Solutions Services Provided By MOSL 24 1 Portfolio Management Service • • • • • • • • • • • • • • Introduction Different Kind Of PMS Value PMS Features of Value PMS Bull’s Eye PMS Features of Bull’s Eye PMS The Focused Strategy Series – I PMS Features of The Focused Strategy – I PMS Trillion Dollar Opportunity Strategy PMS Features of Trillion Dollar Opportunity Strategy PMS Risk Factor Nature of Expenses Taxation Accounting Policies .

• Types Of Analysis • • • • Introduction Technical Analysis Fundamental Analysis Wealth Creation Study 56 • PRIMARY 61 DATA RESEARCH • • • • • • • • 64 Objectives of the research Research methodology OF QUESTIONNARE ANALYSIS SWOT 77 FINDINGS 81 SUGGESTIONS 83 BIBLIOGRAPHY 85 ANALYSIS Questionnaire 87 .


terminal. sub brokers. market. Despite passing through a number of changes in the post liberalization period. we started with an initial database of over 1. the industry has found its way towards sustainable growth. branches. such as region. All the data for the study was collected through responses received directly from the broking firms.800 broking firms that were contacted. The insights have been arrived at through an analysis on various parameters. pertinent to the equity broking industry.BROAKING INDUSTRY OVERVIEW Broking Insights The Indian broking industry is one of the oldest trading industries that has been around even before the establishment of the BSE in 1875. The list was further short listed based on the number of terminals and the top 210 were selected for profiling. from which 464 responses were received. 394 responses. For the broking industry. we present in this section some of the industry insights gleaned from analysis of data received through primary research. that provided more than 85% of the information sought have been included for this analysis presented here as insights. With the purpose of gaining a deeper understanding about the role of the Indian stock broking industry in the country’s economy. Some key characteristics of the sample 394 firms are: . products and growth areas.

• On the basis of geographical concentration. 13% in the South and 10% in the East. 31% trade at NSE. Around 20% trade in cash. i. 67% IPOs and 53% firms offering mutual fund transactions In terms of various areas of growth. around 34% firms trade at NSE. 26% at BSE and 43% at both exchanges Majority of branches are located in the North. 62% firms have provided their website and around 94% firms have email facility • • • • • • • • • Terminals Almost 52% of the terminals in the sample are based in the Western region of India. 13% in the South and 10% in the East 3% firms started broking operations before 1950. Mumbai has got the maximum . 40% are located at Mumbai. followed by 25% in the North. 48% trade at NSE. 84% firms have expressed interest in expanding their institutional clients. we find that almost 36% firms trade in cash and derivatives and 27% are into cash markets alone. 24% are located in South and 5% in East In terms of sub-brokers. 65% between 1950-1995 and 32% post 1995 On the basis of terminals. whereas in the debt market. around 55% are located in the South. 7% in Kolkata. In the derivative segment. 11% in North and 4% in East Trading. IPOs and Mututal Funds are the top three products offered with 90% firms offering trading.e. Around 24% firms are located in the North. West has 31%. 29% in West. 12% in Delhi. 7% at BSE and 45% at both. around 40%. the West region has the maximum representation of 52%. 14% at BSE and 52% trade at both exchanges. 4% in Chennai and 29% are from other cities From this study. derivatives and commodities In the cash market. 66% firms intend to increase FII clients and 43% are interested in setting up JV in India and abroad In terms of IT penetration. 8% in Ahmedabad.

almost 55% of them are based in the South. New Delhi from the North and Kolkata from the East. with as many as 40% of all branches located there. 4% firms trade in all the markets.representation from the West. 40% terminals are located in Mumbai while 12% are from Delhi. 48% of the sampled broking houses are members of NSE and 7% trade at BSE. whereas East has around 4% of total sub-brokers. while 45% of the sample operate in both stock exchanges. firms into cash and commodities are 3%. Cash market. Majority of the sample broking firms are dealing in the cash market. Mumbai also has got the maximum representation in having the highest number of terminals. 8% from Ahmedabad. Branches & Sub-Brokers The maximum concentration of branches is in the North. Around 24% branches are located in the South and East constitutes for 5% of the total branches of the total sample. In case of sub-brokers. 4% from Chennai and 29% are from other cities in India. followed by derivative and commodities. debt market and commodities market. Almost 20% firms trade in cash. with 31% branches. whereas 35% are into cash and derivatives. derivatives and commodities market. followed by the Western region. 27% firms are dealing only in the cash market. Firms that are into cash. Chennai from the South. 14% at BSE and 52% trade at both exchanges. cash & debt market and commodities alone are 2%. On the other hand. 7% from Kolkata. Financial Markets The financial markets have been classified as cash market. West and North follow. derivatives market. is the most sought after amongst investors. Around . also known as spot market. In the cash market. with 30% and 11% sub-brokers respectively. around 34% firms trade at NSE. In the equity derivative market. derivatives and debt are 7%.

The average growth in assets under management in the last two years is almost 48%. company research etc. which was pegged at 40% in 2006. Around 20% and 21% firms are solely in NCDEX and MCX respectively. trade at both exchanges with 31% and 26% firms uniquely at NSE and BSE respectively. arbitrage etc are offered by the firms at different levels. the core trading activity is still the predominant form of business. the Western region was dominant amounting to 49% followed by 27% from North. 13% from South and 10% from the East. The broking industry seems to have capitalised on the growth of the mutual fund industry. the firms have started offering various investment related value added services. Around 50% of the firms offering IPO related services are based in the West as compared to 27% in North. However. More than 50% of the sample broking houses deal in mutual fund investment services.43% of the broking houses operating in the debt market. Additionally. 13% in South and 10% in East. The South and the East are almost at par with 13% and 11% respectively. 57% firms operate at NCDEX and MCX. mutual funds. The sustained growth of the economy in the past couple of years has resulted in broking firms offering many diversified services related to IPOs. Of the brokers operating in the commodities market. apart from trading. Products The survey also revealed that in the past couple of years. followed by 25% from North. . whereas 2% firms trade in NCDEX. MCX and NMCE. 52% are based in the West. Company research is another lucrative area where the broking firms offer their services. Of the total sample of broking houses providing trading services. forming 90% of the firms in the sample. In providing mutual funds services. a host of other value added services such as fundamental and technical analysis. 67% firms are engaged in offering IPO related services. investment banking. more than 33% of the firms are engaged in providing company research services.

Amongst these firms. rising market capitalisation and sectoral friendly policies helping the FIIs. West again has maximum representation of 53%. along with Korea and Taiwan. India. has been one of the preferred destinations for the FIIs.Future Plans 68% of the firms from the sample have envisaged strategies for future growth. more than two thirds of the firms are interested in increasing their FII client base. . Nearly 51% of such firms are located in the West. 15% are from South and 9% from East. followed by North with 22%. South has 15% firms and East makes up for 9%. With the middle class Indian investor as well as foreign investor willing to invest in the stock market. 25% in North. majority of the firms preferred expansion of institutional and the Foreign Institutional Investor clients in their areas of growth. Since the past couple of years. With corporate restructuring. Around 84% have shown interest in expanding their institutional client base.

with just two people running the show. with a dominant position in both institutional and retail broking. . There are various other categories where they have been rated number one most independent research. respect for professionalism. The company was founded in 1987 as a small sub-broking unit.INTRODUCTION Motilal Oswal Securities Ltd is a leading research and advisory based stock broking house of India. Asia money Brokers Poll 2008 has ranked MOSL the best Indian brokerage firm. ethical and transparent business practices. sales and service etc by the Brokers Poll. MOSL was 'Rated No. Focus on customer-first-attitude. MOSL enters Limca Book of World Records’ for creating India’s largest dealing room over 26.1 – Best recommendations Mid & Small Caps' and won awards in 3 out of 4 categories at the Starmine India Broker Rankings 2009 from Thomson Reuters. research-based value investing and implementation of cutting-edge technology have enabled them to blossom into an almost two thousand member team.000 sq ft in Malad at Mumbai.

.2009. Hong Kong and Singapore. Qualified professionals carry out different functions under the able leadership of its promoters. talented and confident individuals. Raamdeo Agrawal. Stringent employee selection process. Institutional Equities. Investment Banking Services and. Today.Their institutional business unit has relationships with several leading foreign institutional investors (FIIs) in the US. MOSL is a well diversified financial services firm offering a range of financial products and services such as Wealth Management. Commodity Broking. Portfolio Management Services. In a recent media report MOSL was rated as one of the top-10 brokers in terms of business transacted for FIIs. Mr. Principal Strategies Motilal Oswal Securities invests almost 5-10% of its revenue on equity research and hires and trains the best resources to become advisors to its valued clients. authored by Mr.373 investors through 1308 outlets spanning 555 cities as of June30. Due to this today MOSL is a most trusted advisory firm in terms of equity investment. UK. The retail business unit provides equity investment solutions to more than 557. focus on continuous training and adoption of best management practices drive the quest to achieving their Vision. Broking & Distribution. Private Equity. Investors keenly await this annual study for the wealth of information it has on how companies created wealth during the preceding five years. is now in its thirteenth year. Managing Director. The organization finds its strength in its team of young. Raamdeo Agrawal. Motilal Oswal and Mr. Their final unique Wealth Creation Study.

associates and business partners Research based value investing Cutting edge technology to ensure world-class customer service .Driving Force • Our Core Purpose To be a well respected and preferred global financial services organization enabling wealth creation for all our customers • Our Values • • • • • Customer interest is paramount Ethical and transparent business practices Respect for professionals.

(MOCB) Incorporated on March 26.95% Motilal Oswal commodities brokers private ltd. (MOIA) Incorporated on March 20. 1991 Commodity broking Motilal Oswal venture capital advisor private ltd.ORGANIZATION BRANCHES Motilal Oswal Financial Services Ltd (MOFSL) Incorporated on May 18. (MOVC) Incorporated on April 13. 1994 Stock Broking (Institutional & Retail) Shareholding: MOFSL – 99. 2005 Motilal Oswal Securities Limited (MOSL) Incorporated on July 5. 2006 Investment & merchant banking Shareholding: MOFSL – 75% Shareholding: MOFSL – 97. 2006 Private equity investment Shareholding: MOFSL – 100% Motilal Oswal investment advisor private ltd.55% .

to provide reliable & honest investment advice to investors’. • 2009 • • Motilal Oswal Securities Ltd.1 – Best recommendations Mid & Small Caps' and won awards in 3 out of 4 categories at the Starmine India Broker Rankings 2009 from Thomson Reuters • 2008 • • • • • MOSL awarded the prestigious Nasscom . Raamdeo Agrawal met each other as students in a Mumbai suburban hostel in the early eighties. Mumbai Motilal Oswal's India Business Excellence Fund raised USD 125 million. 25% higher than the initial target of USD 100 million D & B survey rates MOSL as India's top Broking House in terms of total number of trading terminals. enters 'Limca Book of Records' for creating India's largest dealing room in Mumbai MOSL was 'Rated No. when Mr.MOSl HISTORY AND MILESTONE The story of MOSl goes back many years. Motilal Oswal and Mr.000 sq ft in Malad. Both the young chartered accountants hailing from a rural & an unpretentious background had a common dream ’to build a professional organization with strong value systems. Thus was born their first enterprise called "Prudential Portfolio Services" in 1987. spread over 26.CNBC TV 18 IT User Award – 2008 MOSL awarded 'The Best Franchisor in Financial Services' by Franchisee World Magazine 2008 for the second consecutive year MOSL creates one of India's largest Equity Dealing & Advisory rooms. MOSL alliance with IDBI Bank to offer Online Trading Services .

Chairman and Managing Director has been appointed as a member of the Managing Committee of Indian Merchant Chambers.reaches an important milestone i. Motilal Oswal Financial Services Ltd was declared as the Best Research House for Indian Stocks in 2006 as per AQ Research.Local Brokerage • 2007 • • • • • • • • • • The Strategic partnership between MOSL and SBI . features as a case study in Harvard Business School Motilal Oswal Financial Services Ltd ties up with Punjab National Bank to offer online trading to its customers • 2006 • • Motilal Oswal Financial Services Ltd ties-up with State Bank of India to offer online trading. .e. gets listed on the BSE & NSE Mr.Starcom Mediavest Survey Introduces a separate brand for Private Client Group – Purple Motilal Oswal Commodities Broker Pvt Ltd (MOCBPL) bagges Globoil India's prestigious 'Outstanding Commodity Broking House 2007' Award Motilal Oswal Financial Services ltd. In less than a year it has managed to sign up more than 10.Best Overall Country Research .EZtrade .000 customers Starts Knowledge First campaign Motilal Oswal was perceived as the most Research driven stock trading player .• AsiaMoney Brokers poll 2007 rates Motilal Oswal Securities Ltd. Motilal Oswal . . Motilal Oswal Financial Services Ltd files RHP with SEBI for an IPO Motilal Oswal Financial Services Ltd.

• 2005 • • • • AsiaMoney Brokers Poll 2005 rates Motilal Oswal Securities . Acquires Capital Deal Stock and Share Brokers. Issues about 13% of company’s equity to employees as ESOPs.000 customers. 50 lakh category. Value PMS gives 390% returns to its investors between Feb 2003 and March 2006.Peninsular Capital Markets. Investment banking business advises Aban in their majority controlling stake of Sinvest ASA – one of the largest investment banking deals of 2006.000 customers. Employee base crosses 2000 and Business Associate base crosses 780. Also acquires 1 more brokerage firms in UP. Places 9. over 360 cities. Launches two new Portfolio Management Schemes . Deepest distribution in the stock broking segment with about 700 Business locations in 296 cities and about 1. (a proprietary concern based in Karnataka). 5 lakh to Rs. serving over 200. Best in Sales and Service.Best Local Brokerage. .New Vernon Private Equity Limited and Bessemer Venture Partners. Enters Private Equity and Investment Banking businesses. Most Independent Research Brokerage. a US$ 100 mn India focused Private Equity Fund. 50.48% with two leading private equity investors .Value Hedging for derivatives and Discover Value for the Rs.Local Brokerage Introduces unique 1 paisa trading scheme for online Derivatives trading Launches the India Business Excellence Fund (IBEF). Acquires a leading south Indian brokerage firm .• • • • • • • • • • • AsiaMoney Brokers poll 2006 rates Motilal Oswal Securities – Most Independent Research. Another milestone in distribution – 1160 Business locations.

Uniquely structured performance related fees. About 200 Business locations in 124 cities servicing over 15. Direct servicing of HNI clients is initiated.000 Retail and Institutional Investors. MOSt Portfolio Management Services launched with Mr. • 1999 • Mr. . Crossed 15. Inquire team is successful in capturing the uptrend in Banking.• 2004 • • Value PMS delivers a whopping 160% post tax returns for the period ended April 2004. Bulls Eye PMS . • The Wealth Creation Study started in 1996 culminates into Wealth Creation Seminar and Awards function in 1998.000 Depository accounts. Raamdeo Agrawal starts attending legendary billionaire investor Warren Buffett’s Annual General Meetings of Berkshire Hathway Inc. Auto and Infrastructure sectors.000 Depository accounts. He still continues to attend it every year. • 2003 • • • • • Enters the mutual fund and IPO distribution business. Received the AsiaMoney Award . Retail network completes coverage of 75 cities in India.2nd best among Indian Brokerage firms. Crosses 10. • 2002 • • • • MOSt consolidates its retail operations & upgrades its IT / Back Office infrastructure to cater to its growing network of business locations.A momentum based PMS launched. Raamdeo Agrawal as the Portfolio Manager. Start of the Solid Research Solid Advice campaign.

Since then nearly 20% of revenue is allocated to research. “Wealth Creation” Campaign started. • 1990 . Ivan Mathias. First Domestic Stock broking house to have such a strong Research focus. www. former country head of Watson Wyatt launched. on itsBoard to Directors to shape HR initiatives. Inquire (Indian Equity Research) is formally created at a 2500 sq. • 1994 • MOSt acquires NSE Membership and plans for major expansion of its retail network. Inducts Mr. First of its kind study initiated to identify biggest and fastest wealth creating companies in Indian Stock markets. Becomes a Depository Participant of National Securities Depository Limited (NSDL).• • • • • First Stock Broking house to brand its services as a research and advice based broker. Wealth Creation Study started. • 1998 • Mr.MotilalOswal. First broking house in India to go on the web. Motilal Oswal joins the Governing Board of The Stock Exchange. ft office in South Mumbai with bigger and better quality infrastructure than the corporate office. “Motilal Oswal” enters Institutional Broking business. • 1995-96 • • ”Motilal Oswal” gets incorporated as Motilal Oswal Securities Ltd. Mumbai.

“Motilal Oswal” is formed through acquisition of membership on The Bombay Stock Exchange (BSE). Motilal Oswal and Mr. Three more memberships taken in later years. • 1987 • Mr.• After just three years in the business. Raamdeo Agrawal lay the foundation of a great partnership by starting a sub-broking firm. . The venture stands out from the rest due to their approach of Research-based broking even when sub-brokers .



It provides mainly broking premier Brokerage Service based on fundamental research. Derivatives (Futures & Options) are ideal instruments to protect your portfolio against risk. hedge and leverage your portfolio by limiting risk but keeping your upside unlimited.• MOSL is providing different kind of services under its Broking and Distribution Services to its clients. They are as follows. You can trade with index movements. and get connectivity through V-sat facility. • • • • • • • • Advised based Broking on BSE / NSE ( Cash & Derivatives ) Portfolio Management Services ( PMS ) Internet Trading ( E Broking ) Timely & Researched based Investment and Trading Ideas Depository Services ( MODES ) Advised based Mutual Fund Commodities IPO • Advise based broking: Motilal Oswal Securities Ltd. Its research based advice is very successful in market. BSE and F & O trading facility to its customers. providing advice based equity trading to its clients. MOSL is providing NSE. . They are used Bharti Televenture’s V-sat connection. MOSL have NSE. They use Orian software for trading. BSE registration.

MOSl provides you E-Broking Platform which brings you a world class experience of online investing. Their robust risk management . A multitude of resources like live quotes. • Account Opening • Dematerialization • Re-materialization • Account Transfer • Transmission • Nomination • Pledging And Hypothecation • Account Closures • MOSl E-Broking: There is nothing more exhilarating. You receive regular account reports and an efficient service at all times. and online assistance helps you take informed decisions. more daring and more rewarding than making the right trade at the right time. Buying and selling of shares is now just a click away. MOSt is a member of both NSDL and CDSL and the service is available at all over outlets in India. The non-trading members also can avail of their Depository services. research. advice.• Depositary Services: In the times of T+2 having a demat account linked to your trading account becomes really convenient. charts.

system and 128 bit encryption gives you a complete security about money. • Focused Strategy Series 1 PMS Scheme is create wealth for investor by investing in stocks that can benefit from growth in earning and a higher P/E or Higher valuation of assets Its clients. by investing in focused themes which are part of the next Trillion Dollar GDP growth opportunity. With about 15% of their revenue invested in their research capability. 2009. shares. they have some of the sharpest resources that produce excellent research insights on companies. • Bull’s Eye Strategy PMS scheme is meant for investors who want to take moderate risk and generate healthy returns from the equity market from time to time. investor community and some of the most prestigious publications like Asia money and Institutional Investors amongst others acknowledge Motilal Oswal Securities as one of the leading research based equity broking house in India. • Value Strategy PMS scheme is meant for investors with long-term interest in the market. and transaction documents. • Trillion Dollar Opportunity Strategy PMS Scheme is create wealth for investors. • MOSl Portfolio Management Service: Motilal Oswal Securities ltd offers 4 type of PMS schemes meant for investors with different investment preferences as of June 30th. The .

which are best. All you need is to open an account with them. Based on your risk appetite. They advise a mature and longterm view on mutual fund investments. Motilal Oswal Commodities Broker (P) Ltd can certainly be a point of entry to the Commodity Markets for any person. rolling returns. investment horizon and your existing investments they will suggest investment in mutual fund schemes. • MOSl Commodities: Investors looking for a fast-paced dynamic market with excellent liquidity can now trade in Commodity Futures Market. The fund and scheme selection is done after an in-depth research on parameters like risk adjusted returns. Being one of the stock brokers they keep a close watch on the markets. provide research and contact you regularly with trading advice. suited to you. MOCB is a registered trading cum-clearing member of NCDEX. Participation is not difficult. MOCB shall offer you advice on investments & strategy. The Commodity Exchange is a Public Market forum and anyone can play in these vital Commodity Markets. .same is then passed to their highly rated portfolio management and investment advisory team that works on its personalized investment strategy. • MOSl Mutual Advise based broking: To enable clients diversify their investments Motilal Oswal Securities Limited has added another product in its bouquet and will now offer mutual funds. MOSl mutual team is in close contact with various fund houses and interactive sessions are held with fund managers. volatility and portfolio churn. They will provide you regular updates on products and new schemes.

MOSt Mutual doesn’t stop at just that. . You will also receive their monthly newsletter on Mutual Funds "MOSt Mutual". they go a step further to ensure that you get the right NAV. your dividends are credited on time and your account statements are regularly received.


In PMS.INTRODUCTION TO PORTFOLIO MANAGEMENT SERVICE • What is PMS? The full Name of PMS is Portfolio Management Service. Portfolio Management Service (PMS) is a product wherein a customized investment portfolio is created to suit the investment objectives of a client. settlement and performance reporting is all assumed by the PMS provider. order execution. the portfolio manager handles the responsibility of creating and tracking the portfolio. The client derives the benefit of the professional and experience of the Portfolio Manager • Why PMS? • Investor’s Dilemma • • • • I have the money & desire to make money Now I know or I already knew equity is a good instrument for creating wealth but My Busy Schedule does not allow me to have time to study and identify the right stocks or Sometimes. . I have tried my luck in the stock market and realized that through I understand the market to some extend but is not enough to keep coming with winning investment. Idea identification. PMS is for an investor who doesn’t have the time and expertise to manage his portfolio.


.DIFFERENT KIND OF PMS There are three kinds of PMS provided by Motilal Oswal Securities Ltd. They all are descriptive as under. They are as followed • Value Strategy PMS • Bull’s Eye Strategy PMS • Trillion Dollar Opportunity Strategy PMS • Focused Strategy Series 1 PMS These all PMS have their different features.

In fact. This approach can be termed as conservative. with clients not only in India. Motilal Oswal (MOSl) has a highly satisfied client base both on the Institutional side as well as on the retail side of High Net worth Individuals and Franchisees’. suppliers and competitors.VALUE PMS Value PMS is a scheme meant for investors with a Long Term investment horizon in the Indian Equity Markets the money management team is headed by Mr. The Value PMS has been running successfully since February 2003.. we very clearly understand the difference between value and price. This has been possible because of a strong equity research team (Inquire) completely focused on identifying wealth creating companies. the founder-director of Motilal Oswal Securities Ltd.a. Raamdeo Agrawal. Agrawal believes in low portfolio churn and a high “margin of safety” investment philosophy for long term and sustainable wealth creation. compounded over the last five years on a substantial size. This process involves understanding the business dynamics through a continuous interaction with company managements. At Inquire. It is this success that makes us confident of handling funds management for external clients. so that even a mediocre sale will fetch good returns. The whole stock selection process is geared to find investment ideas with a sufficient margin of safety. Mr. MOSL’s primary objective is preservation of capital and prevention of any significant permanent capital loss. . but across the globe. and a very well respected investor among the Indian Investor Community. handled by Ramdeo Agrawal has delivered a return of 30% p. Our teams of Analysts follow a thorough research process. MOSl’s own portfolio. it is this dedication and processes that have won us international acclaim like Asia Money 2000 Brokers Poll award.

Quarterly meetings with Mr. Their own depository will act as your custodian for a nominal custody fee. Your portfolio will be constructed to meet your investment goals at a given level of risk. Monthly Transaction Statements. For hassle free custody. All administrative matters will be off your shoulders. Thus you will only have to monitor the portfolio performance through periodic reports from the company side. However. Bank and DP Statements. you may choose an external custodian with whom we will liaise on your behalf. Settlement will be done by their trained personnel who will ensure that all administrative matters are expeditiously handled and reconciled. Alternatively. banking and settlements MOSL has its own depository service Motilal Oswal Depository Services. .a. Ramdeo Agrawal your portfolio manager Reports on tax status of the portfolio before the advance tax due dates. there is no guarantee of positive returns. • You can expect the following from MOSL • • • Monthly Portfolio Statements including Portfolio Performance Report. MOSL’s in house depository will facilitate MOSL as acting as custodians and present you a completely hassle free custody. • How it is different from Mutual Fund? MOSl PMS offers you a unique combination of equity expertise and personalized service. Their goal will be to do better than this.They expect that the stock market will give a return of 15% p. for the next three to five years. They will handle your Banking (in a special bank account under POA from you) and trade.

They have a stated objective to keep the churn very low. . You should not be burdened when the portfolio performance is not positive. These aspects would not be available to you in a mutual fund. and that is to cover their running costs. Importantly. as they strongly believe that it will align the interests of the firm and the client. MOSL’s fee is significantly lower than the basic management fee levied by a mutual fund (pre. • Who can Sign Up? The following categories are eligible as per SEBI’s rules. You can monitor the portfolio turnover. They have consciously kept MOSL fee more performance linked. • • • • Individuals HUFs Companies N.R. • Reason of Performance Fee: The base asset management fee being charged is much lower than that charged by others.performance management fee).I. It is a little known fact that high turnover takes away a major part of investment returns.

Portfolio Manager. settlement and performance reporting is all assumed by the PMS provider. PMS is a product where in a customized investment portfolio is created to suit the investment objectives of a client. Raamdeo Agarwal. Idea generation. In PMS. So that it leaves sufficient room for investor to be invested and nurture his portfolio. Raamdeo Agarwal. They would prefer Mr. Low portfolio churn and capital preservation will be key to success. Our investment decision will cushion in high . the responsibility of creating and tracking the portfolio is handled by the portfolio manager. .margin of safety. This service is particularly advisable for investors who cannot afford to give time or don’t have those expertises for day-to-day management of their equity portfolio. to manage the same. order execution.• For Whom Portfolio Management Service (PMS) is meant for investor with long-term time horizon. The client derives the benefit of the professional expertise and experience of Mr.

25 Lakhs cash or approved securities per individual or group.a.25% 2.FEATURES OF VALUE PMS • Scheme : Minimum Portfolio Size: Rs.02% Brokerage The Portfolio manager will have discretion to appoint any brokers to execute the transaction for Portfolio management scheme.00% 0.75% 2.00% Nil 0.50% 1. Nil 2.25% Nil Option 2 0. Brokerage Rate will be as applicable. • Fee Structure : Nature of Fees One time upfront Fee Fixed Management Fees Assets Under Management >25 Lakhs Rs 25 Lakhs To Rs100 Lakhs 100 Lakhs and above Performance Based Management Fees Exit Load Exit Between 0-12 months Exit after 12 months Custodian Fees Option 1 0.75% 10% Profit Sharing on Higher Water Marking Basis Liquid Strategy Nil Per Annum Rs 600p.00% Nil 0.50% 2. As Applicable Nil Depositary Charge Registrar and Transfer Fees .00% Nil 2.50% Per Annum 2.50% Per Annum 1.

Service Tax. would be appointed as a broker. As Applicable • Withdrawals: All withdrawals would be with the mutual consent of the client and the fund manager. The withdrawals may be in form of shares or in cash at the end of the agreed period. . Broking as applicable to broking segment clients. Security Transaction Tax and other Statutory Levels • Broker: Motilal Oswal Securities Ltd.

Those who have knowledge of the stock market but lack the discipline to book profits when the going is good or sit on cash when market looks overheated and cannot track when the stock has run ahead of its fundamentals in the short term are the ideal investors who should invest in Bull’s Eye.BULL’S EYE PMS Bulls Eye is the second product under the AMC. Technical would be used to TIME the fundamental ideas. In a trended bull market. The whole idea is to minimize the risk by timing the stock selection. The scheme aims to deliver 15-20% returns in Volatile Markets. 25 Lakhs & then scale up based on his comfort & overall performance. It is a short to medium term investment product. with higher weight age per stock. Idle cash will be invested in liquid mutual funds for the short term. A lower weight will be assigned to stocks where we may not have in-house coverage. It is to invest in stocks with a time frame of 1-6 months. we give flexibility to the investor to join at Rs. so as to participate and capture sharp rallies. returns can be substantially better. Though the minimum signing amount is Rs. Investors who not only want steady returns irrespective of market volatility. . and also to pick momentum based ideas where there is no in-depth fundamental coverage. for which there is a substantial appetite. Booking profits regularly and ability to sit on cash are the key salient features of Bulls Eye PMS. Majority of the corpus. especially when there is no one-sided trend. Bull’s Eye is launched to fill in this Gap. Hence. but also would like to take advantage of short to medium term rallies.20% move. for a minimum 15. 50 Lakhs. will be invested in MOST researched ideas both large cap & mid cap.

take advantage of volatile markets and book profits regularly keeping market conditions in mind. which my busy schedule doesn’t allow. Can I get a good portfolio manager who can take my funds and invest them intelligently in equities? Someone. . Unfortunately. all this requires time to study. Stock Market is one place where you can outdo all other investment instruments." Its time you hit the Bull’s Eye with Motilal Oswal Securities Limited. All one needs is in-depth understanding of the markets and the company one invests in right entry levels and profitable exit points. I love the action and whatever everybody may say. who invests my money in fundamentally strong companies.• For Whom The mind of a successful and a busy investor” There is so much action in the markets nowadays. There have been so many times when I felt like encasings my large unrealized gains but got swayed by my Greed.

picking and exiting at the right times and then continuing the cycle. • Determining Entry and Exit Points: After identifying the companies for investment. So even while a stock may look fundamentally strong. . over expectations build-up etc). now famous. . We believe that apart from the right entry levels. Our. selling at the right time is equally important. read the market condition and pick up the stocks in opportune sectors. We believe Investing = Hunting. Wealth Creation Studies have proved that there aren’t even 100 companies out of the 6000 listed on exchanges that create wealth for its investors during the five year periods. Therefore. Moderate risk is the key philosophy: We take moderate risk while making any investment. we employ similar strategy while exiting the stock and this completes our hunt for good returns. Identifying the right stocks: Our strong proven Fundamental Analysis skill allows us to understand the profile and the performance of various companies. This allows us to pick the wheat from the chaff. It’s about identifying the right stocks. Here is the investment strategy we employ to generate desired returns through our Bull’s Eye PMS scheme. we resort to technical analysis.• Bull’s Eye strategy to better returns . Duration of the investment is one to six months. So the task of picking the right stocks is more difficult than most of us can imagine. . the age of our investment in it may depend on the reality based on technical research along with the prevailing market conditions (markets are overheated.

Nil 2.50% Per Annum 1.75% 10% Profit Sharing on Higher Water Marking Basis Liquid Strategy Nil Per Annum Rs 600p.FEATURES OF BULL’S EYE PMS • Scheme : Minimum Portfolio Size: Rs.00% Nil 2. 25 Lakhs cash or approved securities per individual or group.00% 0.a.25% Nil Option 2 0. Security Transaction Tax and other Statutory Levels Option 1 0.02% The Portfolio manager will have discretion to appoint any brokers to execute the transaction for Portfolio management scheme.00% Nil . Brokerage Rate will be as applicable.75% 2.50% Per Annum 2.25% 0.00% Nil 0. As Applicable Nil As Applicable 2.50% 1.50% 2. • Fee Structure: Nature of Fees One time upfront Fee Fixed Management Fees Assets Under Management >25 Lakhs Rs 25 Lakhs To Rs100 Lakhs 100 Lakhs and above Performance Based Management Fees Exit Load Exit Between 0-12 months Exit after 12 months Custodian Fees Brokerage Depositary Charge Registrar and Transfer Fees Service Tax.

The withdrawals may be in form of shares or in cash at the end of the agreed period.• Broker: Motilal Oswal Securities Ltd. would be appointed as a broker. Broking as applicable to broking segment clients. . • Withdrawals: All withdrawals would be with the mutual consent of the client and the fund manager.

The underlying philosophy of the portfolio is to Buy and Hold until the stocks realize their re-rating potential. The aim is to identify best candidates for a re-rating potential. The strategy follows a concentrated portfolio approach. The strategy aims to identify investment opportunities which exhibit a re-rating potential over a 2 year period. The underlying principle is to pick the best ideas rather than diversification. The portfolio follows a bottom-up stock selection approach with an investment horizon of 2 years.THE FOCUSED STRATEGY SERIES . the portfolio will exhibit a preference for companies that may have been overlooked or are out of favour. The portfolio will aim to invest in fundamentally sound companies that can benefit from a re-rating.I PMS The Focused Strategy – Series I has been is designed to invest in stocks that can that can benefit from growth in earnings and a higher P/E or higher valuation of assets. Companies benefiting from internal fundamental changes New management team or new product launch Cost-cutting initiatives or improved pricing Merger or acquisition Companies benefiting from changes in business environment Consolidation or reduction in industry capacity leading to improved pricing . To increase the prospects for out performance. • The portfolio aims identify companies which exhibit the following Characteristics: • • • • • • • Companies whose earnings are likely to do better than market consensus. by limiting the number of stocks in the portfolio to 7.

• • • Shift in consumption patterns or demographic trends Out of favor companies fundamentally sound companies that have underperformed for temporary reasons Companies with lower valuation as compared to sector or peers or market • Portfolio Characteristic: • • • • • • • • Bottom-up stock selection Investment in stocks with re-rating potential Out of Favour Stocks Concentrated portfolio Investment horizon: long term (two years) Risk: high Performance Fee will be Charged at end of 2 years Buy and hold philosophy – low portfolio churn .

• Who can Sign in? Investors from the following categories are eligible to participate in .• Reports provided to investors. Monthly portfolio statement specifying portfolio of the investor and gain and loss. • Individuals • Proprietorship firms • HUF’s • Partnership firms • Registered societies • Registered trusts • Corporate .Discover value. Monthly transaction statements. Yearly portfolio statement certified by a CA. • • • • Motilal Oswal Securities provides the following reports to the investors to keep them appraised with their portfolio performance.

I PMS • Scheme : Minimum Portfolio Size: Rs.50% Per Annum 1. As Applicable Nil Depositary Charge Registrar and Transfer Fees .00% Nil 0. • Fee Structure : Nature of Fees One time upfront Fee Fixed Management Fees Assets Under Management >25 Lakhs Rs 25 Lakhs To Rs100 Lakhs 100 Lakhs and above Performance Based Management Fees Exit Load Exit Between 0-12 months Exit after 12 months Custodian Fees Brokerage Option 1 0.02% The Portfolio manager will have discretion to appoint any brokers to execute the transaction for Portfolio management scheme.25% 2.00% Nil 0.25% Nil Option 2 0.50% 2.00% Nil 2. Brokerage Rate will be as applicable.50% 1.75% 2.00% 0.50% Per Annum 2. Nil 2.75% 10% Profit Sharing on Higher Water Marking Basis Liquid Strategy Nil Per Annum Rs 600p.a.FEATURES OF THE FOCUSED STRATEGY SERIES . 25 Lakhs cash or approved securities per individual or group.

As Applicable • Withdrawals: All withdrawals would be with the mutual consent of the client and the fund manager. . Broking as applicable to broking segment clients. Security Transaction Tax and other Statutory Levels • Broker: Motilal Oswal Securities Ltd. would be appointed as a broker. The withdrawals may be in form of shares or in cash at the end of the agreed period.Service Tax. .

. The Portfolio would attempt to identify emerging themes early and exit when these when they are fairly discounted.TRILLION DOLLAR OPPORTUNITY STRATEGY PMS The portfolio is designed to invest in themes /stocks in the small and mid cap segment which are going to be a part the “NEXT TRILLION DOLLAR GDP GROWTH”. The Portfolio would target to invest in Small & Mid Cap Opportunities which have the potential of delivering above-average growth over the next 2-3 years The investment philosophy is to invest in stocks which are available at reasonable valuations and promise more than average growth. Perception Rerating happens due to: • • • • Increased Sales volume Consistent Growth Better Margins Growing stakeholders’ confidence The Product aims to deliver superior returns by investing in Small & Mid cap ideas that are part of the next Trillion Dollar GDP growth opportunity. For any stock to get recognized by the Market and get a desired Valuation one has to wait for the right “Trigger Point”. We firmly believes that markets rewards consistent growth over a period of time and only after critical size has been achieved by the company. The portfolio would aim to identify emerging themes.

Wealth is created by sitting. • Reports provided to investors. • • • • Motilal Oswal Securities provides the following reports to the investors to keep them appraised with their portfolio performance.• Portfolio Characteristic: • • • • • • • • Investments in Small and Mid-cap Stocks Bottom Up Stock Picking Approach Focused Theme Portfolio Investment Horizon .Long term (2 to 3 Yrs) Benchmark: . Monthly transaction statements. Reasonable Valuation: Invest in high growth companies at reasonable price / value Emerging Themes: Focus on Identifying Emerging Stocks / Sectors Buy & Hold Strategy: The Portfolio shall focus on above philosophies and hold them till it realizes it true market potential. Monthly portfolio statement specifying portfolio of the investor and gain and loss. .CNX Mid Cap Buy and Hold Philosophy – low portfolio churn Open Ended Portfolio with Exit Fee Quarterly Disclosure Of Portfolio • Investment Philosophy and Strategy • • • • • High Growth Story: Sector and Companies which promise a higher than average growth. Yearly portfolio statement certified by a CA.

• Who can Sign in? Investors from the following categories are eligible to participate in . • Individuals • Proprietorship firms • HUF’s • Partnership firms • Registered societies • Registered trusts • Corporate .Discover value.

75% 2.50% Per Annum 1.a. Nil 2.75% 10% Profit Sharing on Higher Water Marking Basis Liquid Strategy Nil Per Annum Rs 600p. • Fee Structure : Nature of Fees One time upfront Fee Fixed Management Fees Assets Under Management >25 Lakhs Rs 25 Lakhs To Rs100 Lakhs 100 Lakhs and above Performance Based Management Fees Exit Load Exit Between 0-12 months Exit after 12 months Custodian Fees Brokerage Option 1 0.02% The Portfolio manager will have discretion to appoint any brokers to execute the transaction for Portfolio management scheme.00% Nil 2. 25 Lakhs cash or approved securities per individual or group.25% 2.25% Nil Option 2 0. Brokerage Rate will be as applicable.00% Nil 0.50% 1.50% Per Annum 2.FEATURES OF TRILLION DOLLAR OPPORTUNITY STRATEGY PMS • Scheme : Minimum Portfolio Size: Rs.00% 0.00% Nil 0.50% 2. As Applicable Nil Depositary Charge Registrar and Transfer Fees .

Broking as applicable to broking segment clients. Security Transaction Tax and other Statutory Levels • Broker: Motilal Oswal Securities Ltd. As Applicable • Withdrawals: All withdrawals would be with the mutual consent of the client and the fund manager. would be appointed as a broker. The withdrawals may be in form of shares or in cash at the end of the agreed period.Service Tax. .

• Following are the risk factors as perceived by management: • Investment in equities. • As with any investment in securities. derivatives and mutual funds are subject to market risks and there is no assurance or guarantee that the objective of the scheme will be achieved. it could depreciate to an unpredictable extent. . changes in the market place and industry specific and macro economic factors. • The past performance of the portfolio manager does not indicate the future performance of the same Scheme in future or any guaranteed returns through these schemes. The performance of the schemes may be affected by changes in government policies. liquidity and settlement system in equity and debt market. • The names of the schemes do not in any manner indicate their prospect or returns. NAV of the portfolio can go up or down depending upon the factors and forces affecting the capital markets. The performance in the equity scheme may be adversely affected by the performance of individual companies. general levels of interest rates and risk associated with trading volumes.RISK FACTOR The investment made in the securities are subject to market risk and there is no assurance of guarantee that the value of or return on the investment made will always appreciate.

the NAV of the portfolio may be subject to fluctuation. liquidity risk and interest rate risk. convertible securities. swap agreements of any other derivative instruments for the purpose of hedging and portfolio balancing. This may expose the scheme to liquidity risk. • The scheme may invest in non-publicly offered debt securities and unlisted equities. • Engaging in securities lending is subject to risks related to fluctuations in collateral value/settlement/liquidity/ counter party. • The scheme may use derivatives instruments like index futures. The use of a derivative requires an understanding not only of the underlying instrument but of the derivatives itself. which might result in the proceeds being invested at a lower rate. warrants. the ability to asses the risk that a derivative adds to the portfolio and the ability to forecast price or interest rate movements correctly. Consequently. concerning the use of derivatives that investors should understand.• Investment in debt instrument and other fixed income securities are subject to default risk. stock futures and options contracts. There is the possibility that a loss may be sustained by the portfolio as a result of the failure of . as permitted under the regulations and guidelines. • Derivative products are specialized instrument that require investment techniques and risk analysis different from those associated with stocks and bonds. As and when the scheme trade in the derivatives market there are risk factors and issues. Derivatives require the maintenance of adequate control to monitor the transactions entered into. • Investment in debt instruments are subject to reinvestment risk as interest rates prevailing on interest amount of maturity due dates may differ from the original coupon of the bond. Usage of derivatives will expose the plan to certain risk inherent to such derivatives.

counter party. Other risks in using derivatives include the risk of miss pricing of improper valuation of derivatives and the inability 9of derivatives to correlate perfectly with underlying assets.another party (usually referred to as the . Even as small price movement in the underlying security could have a large impact on their value. Thus. derivatives are highly leveraged instruments. Also. . rates and indices. the market of derivative instruments is an ascent in India.) to comply with the terms of the derivatives contract.

turnover tax. deposits. transaction costs. bonds. transaction cost like network charges. Other financial instruments would also be levied by the broker (including Motilal Oswal securities ltd.NATURE OF EXPENSES • Investment Management & Advisory Fees: Management and Advisory fees charged may be a fixed fee or a return based fee or a combination of both as detailed in the annexure to the portfolio management services agreement. . foreign transaction charges (if any) and other charges on the purchase and sale of shares.5% of contract value. turnover charges. securities transaction tax of any other tax levied by statutory authority. stocks.) Any entry or exit loads (if any) on units of Mutual Funds will also be charged from clients. stamp duty. • Custody Fees: NIL • Registrar & Transfer Agent Fees: • Brokerage & Transaction cost: NIL The investment under the portfolio management scheme would be done though registered members of stock exchange who charge brokerage up to maximum of 2. • Service Tax: As applicable from time to time. In addition to the brokerage. debts.

• Certification and professional charges: Charges payable for out sourced professional services like accounting. taxation and legal services etc for documentation. certifications. service tax. • Incidental expenses: Charges in connection with day to day operation like courier expenses. attestations required by bankers or regulatory authorities including legal fees etc. postal. opening and operation of bank account or any other out of pocket expenses an may be incurred by the portfolio manager. auditing. telegraphic. stamp duty. .

Provisions related to tax deduction at source shall also apply.TAXATION Investment in securities is subject to the provisions of the Indian Income Tax Act. wherever applicable. . Special reference needs to be made in respect of provision related to capital gains. 1961. business income and all other provisions of the Income Tax Act. Interest a dividends would be subject to tax as per the provisions of the Income Tax Act 1961.

. • For derivatives and futures and options. the last available prices on the exchange or the most recent NAV will be reckoned. Alternatively. • Realize gains/losses will be calculated by applying the first in /first out and / or weighted average principle.ACCOUNTING POLICIES The following accounting policies will be applied for the investments of the clients: • Investment in Equities. The interest on debt instrument shall be accounted on accrual basis. shall be accounted on receipt basis. • Unrealized gains / losses are the differences in between the current market values/NAV and the historical cost of the securities. Mutual funds and Debt instruments will be valued at closing market prices of the exchanges (BSE or NSE as the case may be) or the Repurchase Net asset Value declared for the relevant scheme on the date of the report of any cut off date or the market value of the debt instrument at its cut off date. The portfolio manager and the client can adopt any specific norms or methodology for valuation of investment or accounting the same as may be mutually agreed between them on a case specific basis. unrealized gains and losses will be calculated by marking to market the open positions. interest etc. • Dividends on shares and units in mutual funds.


There are different types of analysis which are used for selecting Portfolio. They are as followed

• Technical Analysis

• Fundamental Analysis

• Introduction
The methods used to analyze and predict the performance of a company’s stock fall into two broad categories: fundamental and technical analysis. Those who use technical analysis look for peaks, bottoms, trends, patterns and other factors affecting a stock’s price movement and then make buy/sell decisions based on those factors. It is a technique many people attempt, but few are truly successful at it. The world of technical analysis is huge today. There are literally hundreds of different patterns and indicators that investors claim to have success with. We have tried to keep this tutorial as short as possible. Our goal is to introduce you to the different types of stock charts and the various technical analysis tools available to investors.

• What Is It?
Technical analysis is a method of evaluating securities by analyzing statistics generated by market activity, past prices and volume. Technical analysts do not attempt to measure a security’s intrinsic value; instead they look at stock charts for patterns and indicators that will determine a stock’s future performance. Technical analysis has become increasingly popular over the past several years, as more and more people believe that the historical performance of a stock is a strong indication of future performance. The use of past performance should come as no surprise. People using fundamental analysis have always looked at the past performance of companies by comparing fiscal data from previous quarters and years to determine future growth. The difference lies in the technical analyst’s belief that securities move according to very predictable trends and patterns. These trends continue until something happens to change the trend, and until this change occurs, price levels are predictable. There are many instances of investors successfully trading a security using only their knowledge of the security’s chart, without even understanding what the company does.

However, although technical analysis is a terrific tool, most agree it is much more effective when used in combination with fundamental analysis.

Here are some points to remember about technical analysis:

Technical analysis is a method of evaluating securities by analyzing statistics generated by market activity, past prices and volume.

The advantage of using a bar chart over a straight line graph is that it shows the high, low, open and close for each particular day.

One of the most basic and easy to use technical analysis indicators is the moving average, which shows the average value of a security’s price over a period of time. The most commonly used moving averages are 20, 30, 50, 100 and 200 - day.

Support and resistance levels are price levels at which movement should stop and reverse direction. Think of support/resistance (S/R) as levels that act as a floor or a ceiling to future price movements.

There are literally hundreds of different price patterns and indicators out there.

Technical analysis is a terrific tool, but it is much more effective when combined with fundamental analysis.

One of the most important areas for any investor to look at when researching a company is the financial statements. • The balance sheet lists the assets.FUNDAMENTAL ANALYSIS • Introduction The massive amount of numbers in a company’s financial statement can be bewildering and intimidating to many investors. assets. Fundamental analysts look at this information to gain insight on a company’s future performance. and give you the tools you need to decide which companies make worthwhile investments. it involves looking at historical performance data to estimate the future performance of stocks. This doesn’t mean that they ignore the company’s stock price. Followers of quantitative analysis want as much data as they can find on revenue. • Management discussion give investors a better understanding of what the company does and usually points out some key areas where they did well. they just avoid focusing on it exclusively. and shareholder’s equity. Also known as quantitative analysis. • Audited financial reports have much more credibility than un-audited ones. Financial statement analysis is the biggest part of fundamental analysis. the financial statements are a gold mine of information. In this tutorial. if you know how to read them. liabilities. liabilities and all the other financial aspects of a company. On the other hand. . we’ll show you how to understand the basics of the financial statements (both quarterly and annual reports). It is essential to understand the purpose of each part of these statements and how to interpret them. expenses. • Financial reports are required by law and are published both quarterly and annually.

For all balance sheets: Assets = Liabilities + Equity. These two sides must always equal each other (balance).

The income statement includes figures such as revenue, expenses, earnings and earnings per share.

For a company, the top line is the revenue while the bottom line is net income.

The income statement takes into account some non-cash items such as depreciation.

The cash flow statement strips away all non-cash items and tells you how much actual money the company generated.

The cash flow statement is divided into three parts: cash from operations, financing and investing.

Always read the notes to the financial statements. They provide more in-depth information on a wide range of figures reported in the three financial statements.

Wealth Creation Study is created by Ramdeo Agrawal. Every Year he organize a wealth creation Award. The Annual Wealth Creation Study and Awards aim to recognize and felicitate the ’Biggest’ and ’Fastest’ wealth creators voted by the investors in the capital market. The awards based on the wealth creation study identities the wealth creators over a five year period. The period for the current study is 1999 - 2004. Over the years the awards have become an integral part of the capital market and are keenly awaited event amongst the institutional and retail investors and managements of corporate India.

MOSt conducts Wealth Creation Seminars across the country regularly to educate individual investors about our research products, derivatives market, investment strategies and latest opportunities in the stock markets. Our senior executives, research analysts and investment strategists address the audience and personally interact with the investors.

• Objectives of The Research





Research methodology is the scientific and general method through which the research objective is conducted. The business research methodology includes the sample size, nature of the study, data collection method, data source, research instruments, sampling plans etc.

Type Of Data There are mainly two types of data primary data and Secondary data.i have used both.

Data Source As I am using here the primary data for research, respondents are the main source for getting information and secondary data collected from various past surveys, internet and journals.

Data Collection For data collection I had used the questionnaire

Sampling Plan  Target Population : People of Ahmedabad City  Sample Size : 100 Samples  Sampling Method : Convenience Sampling


Only 20% people don’t invest in stock market. . This shows that the market of Ahmedabad city is very potential.1) Do You Invest in Stock Market ? Invest In Stock Market Particulars % Invest 80% Not Invest 20% Invest In Stock Market 20% 80% Invest Not Invest In my survey I found that most of people up to 80% in Ahmedabad city invest in stock market.

. so that they invest in bank and insurance. Bonds 26 Commodity 20 Insurance 100 Post 38 Here I found that mostly people fund their investment in safe side. But it also gives very good return. They are supposed that equity market is some what risky market and it is gambling. Currently market is going in bull side. so that they prefer equity as a good investment instrument.2) Out of the following investment options. where do you prefer to invest your savings rate on the scale of 1 to 5? (5 being the most important factor) ? MF 64 Equity 160 Debt 14 Bank 164 PMS 14 Govt.

3) For How Much Period Do You Want To Invest In Stock Market? Investment Period Long Term 77 Short Term 23 Investment Period 23% 77% Short Term Long Term In my survey I found that maximum of the respondents invest for the long term (77%) while only 23% invest for the short period of time. .

4) If you invest in Equity. on what basis do you select a particular script ? Tips 24 Friends 38 Company Research 10 Annual Report 5 Own Research 15 Corporate News 9 INFLUNCE In my market survey I found that maximum number of respondents investing influenced by friends (38%). than they invest by tips (24%) and than by own research (15%). corporate news and annual report 9% and 5% respectively. . Company Research (10%).

while 60% respondents do not aware about PMS .5) Do You Aware Of Portfolio Management Service ? PMS Awareness Aware 40 Not Aware 60 PMS AWARENESS As per my survey I found that 40% of the respondents are aware about PMS.

6) Are You a User Of Portfolio Management Service ? PMS User Yes 15 No 25 PMS USER As per my survey I found that 60 percent people are aware about PMS but only 15 person out of 100 are user of PMS who invest in different PMS schemes .

66% As per my survey I found that among the PMS users 46% invest in 5 Lakh plan.66% 46.66% 26.7) In Which Kind Of PMS Do You Invest ? Investment Limit 50 Lakh 25 Lakh 5 Lakh 26. while 26% invest in 25 lakh & 50 lakh plan each. .

8) How Much Return Do You Expect From PMS Investment ? Can't say 10-20 20-30 56 0 38 30-40 76 40-50 30 50-60 0 60-70 0 >70 0 Expected Return In % 80 60 40 20 0 Can't say 10-20 20-30 30-40 40-50 50-60 60-70 % Return >70 As per my research I found that 38% of the respondents expect that PMS can give 3040% return. while 15% people expect 40-50% return. . 28% of respondents can’t say anything about the return from PMS.

While 32% are agree with the statement.9) Do You Agree That PMS Is a Right Way Of Investment ? Strongly Agree 22 Agree 32 Nuetral 36 Dis-agree 9 Strongly Dis-agree 1 PMS.Right Way To Invest Strongly Dis-agree 1% Dis-agree 9% Strongly Agree 22% Nuetral 36% Agree 32% As per my study I found that 22% of the respondents are strongly agree that PMS is a right way of investment. . Only 10% are disagreed with the statement.

10) Which Problem Do You Face While Investing In PMS ? Big Amount 57 Return Risk 34 Broker Risk 9 Problem While Investing in PMS Broker Risk 9% Return Risk 34% Big Amount 57% As per my market survey I found that most of the people face the problem of big amount of investment in PMS. and very few are saying that brokers risk is a problem due to lack of research & knowledge while investing in PMS. . 34% respondents give the opinion that return risk is a problem while investing in PMS.

.11) Do You Know About Any Other PMS Provider ? Knowledge About other PMS Providers Yes 30 No 70 SSKI IL&FS Angle RSHCIL 6 5 Broking 4 Money 5 5 Patel Security 2 India Infoline 3 Knowledge Abt Other PM S Provider Yes 30% No 70% As per my survey people also know about the other service provider accept MOSL which are as above.

And only 15 respondents are above income of 15000 Rs. .12) Monthly Income of Respondent < 10000 44 1000015000 41 1500020000 9 2000025000 5 2500050000 1 > 50000 0 As per my survey result I found that among all my respondents 44 respondents are in income class of <10000 Rs. 41 respondents are in between 10000-15000 Rs. per month. Per month. Per month.


• The company has well and experience dealers also. • The return given to customers on their investment is high. • The service provided to customers by Motilal Oswal is also good. PMS is totally dependent on the research work so it is very beneficial for the PMS.• Strength:• • A large network is one of the most plus point of Motilal Oswal. • The technology used by Motilal Oswal is very advanced. The leadership of the Motilal Oswal is also very good. • The Research Team of Motilal Oswal is very powerful. • The company’s total turnover is very high. .

• Weakness:• There is over staffing in company. So many times some of employee has no work and this effects on their moral for work and wastage of time also. so company can take benefit for its services special for PMS • In Ahmedabad city there is only one branch of Motilal Oswal. . • The growth of clients in company is constant. • The time management of company is not proper. • Opportunity:• The Equity & Derivative market of Ahmedabad is very potential. So company can make its other branch at the other part of Ahmedabad also. Due to this reason the investors of the other side of Ahmedabad can not take the more benefit of it. • The company has huge database of HNI customers. • Lack of proper co-ordination between two departments of the company.

• Threats • The company has to face a cut throat competition • Rules and regulation of government of India are also very tuff • The increment in new competitors of company with new technology is also very fast.• The place where the company is situated is a very famous corporate place so it is beneficial for the company. • Company arranges seminars regularly for the increasing awareness about the services and its new products. .


• 20% people are not investing in stock market because they believe that it is gambling and gambling is sin and it is highly risky.FINDINGS • Market is potential but only few people investors know about the PMS services. . • HNI Clients agree with research based investment gives more return. And as they are long term investor company should try to convert them in Portfolio investor. • The Company has no any expert person for the marketing of PMS • The company’s Tips are highly demanded • People want to invest in PMS but they are afraid about broker risk and high amount of PMS.


SUGGESTIONS • The staff of Back office or dealers should meet their clients and try to find out their problems and solve it. • The Company should take employee specialist for PMS. • The Company should make contact for PMS services with HNI customers. . • The Company can create more awareness about PMS through seminars and personal relationship. • The solution of customer’s complains should be done on time. • Follow up the customers on time. Most of people don’t know good English. • Company should do more advertisement of PMS. • Company should make literatures in Gujarati also.


5th edition. . Person Education (Singapore) Private Ltd.e-investing.nseindia. 7th edition. Graham and Dodd’s. M. Finance Series • Investment Analysis and Portfolio Management.motilaloswal. • Websites • • • • www. www.• Books • Security Analysis. David Luck & Rolands Rubin .bseindia. • Marketing research. McGraw Hill International Editions. Ranganatham & www.

QUESTIONNAIRE This survey is undertaken as a part of summer training for MBA program. (1) Do you invest in your savings? (Tick any One) Invest [ ] Not Invest [ ] (2) Out of the following investment options. where do you prefer to invest your savings rate on the scale of 1 to 5? (5 being the most important factor) Mutual fund Debt [ [ ] ] Equity Bank [ [ ] ] . Information provided for the same will be used only for educational purpose and will not be disclosed anywhere else.

Bonds Insurance Other (pl.PMS Commodity Post [ [ [ ] ] ] Govt. specify) [ [ [ ] ] ] (3) For how long do you prefer to stay invested? Long term [ ] Short term [ ] (4) If you invest in Equity. on what basis do you select a particular script? Tips Company Research Own research [ [ [ ] ] ] Friends Annual Report Corporate News [ [ [ ] ] ] (5) Are you aware of Portfolio Management Services (PMS)? Yes [ ] No [ ] .

(6)Are you a user of PMS? (Tick any One) Yes [ ] No [ ] (7) How much money have you invested in PMS? (Tick any One)u in Investment more than 50 lakhs Investment more than 25 lakhs Investment more than 5 lakhs None of above [ [ [ [ ] ] ] ] .

(8) How much return do you expect from PMS? 10%-20% [ 20%-30% [ 30%-40% [ 40%-50% [ ] ] ] ] 50%-60% 60%-70% more than 70% [ [ [ ] ] ] (9) Do you agree that PMS is a right way of investment? (Tick any One) Strongly agree Agree Neutral Disagree Strongly disagree [ [ [ [ [ ] ] ] ] ] (10) what problem do you face while investing in PMS? (Tick any One) Big amount for investment Return risk Broker risk [ [ [ ] ] ] .

(11) Do you know about any other PMS providers? (Tick any One) Yes [ ] No [ ] PERSONAL INFORMATION Name Address Contact No : : : Monthly Income (Rs.) : Less then 10000 15000 – 20000 25000 – 50000 Occupation  Businessman  Professional • • Finance Medical [ [ [ [ ] ] ] ] [ ] [ ] [ ] 10000 – 15000 20000 – 25000 More then 50000 [ ] [ ] [ ] .

• • • Legal Engineering Other [ [ ] ] ________________  Service • • Government Non Government [ [ [ ] ] ]  Retired Other ____________________ Thank You .