Professional Documents
Culture Documents
Wealth Management of Indiainfoline
Wealth Management of Indiainfoline
WEALTH MANAGEMENT
With Reference to
SUMBMITTED TO SUBMITTEDBY
PROF.PRIYANKA GOHIL RAMESH KUMAR (253)
SATISH KATHIRIYA (269)
Sign – (1)...........................
(2)………………………….
Place: - Ahmedabad
Any purpose and its fulfillment require deep routed efforts for its completion.
Many characters play a vital role. This is more when a project undertaken is
directly to a cause.
Finally we would like to thank all those who were directly and indirectly
concerned in making my project successful. To put it in a nutshell a difficult
and arduous journey was made simple and quiet enjoyable due to their support.
MBA program is one of the most reputed professional courses in the field of
Management. Training is an integral part of MBA (PGPM). As a
complementary to that every trainee has to submit a report on the research work
conducted in that institute.
This report is thus prepared for the project work done at Indiainfoline
Bapunagar branch. The topic of the project is, “wealth management with
reference to IndiaInfoline”.
Investment means putting your money to work to earn more money. If done
wisely it can help to meet one's financial goals like buying a new house, paying
for a college education, education, enjoying a comfortable retirement or
whatever is important to an individual.
One needs to make decisions about how much he/she wants to invest and where
to invest. To choose he needs to know current good options available and their
relative risk exposures. These help are given to a client in Indiainfoline as to in
which portfolio they can invest and what risks are related to it. They manage all
the respected returns of their clients and timely inform them for the switching to
be done between funds in cases of expected downfall in returns of their Mutual
Funds in future.
Wealth management System offers a one-stop solution to take the guess work out of
mandatory rollovers so you can save time and money.
As the per-capita-income of the city is on the higher side, so it is quite obvious that
they want to invest their money in profitable ventures. On the other hand, a number of
brokerage houses make sure the hassle free investment in stocks. Asset management firms
allow investors to estimate both the expected risks and returns, as measured statistically.
There are mainly two types of Portfolio management strategies.
1) Mutual funds
A Mutual Fund is a body corporate registered with SEBI (Securities Exchange Board of
India) that pools money from individuals/corporate investors and invests the same in a variety
of different financial instruments or securities such as equity shares, Government securities,
Bonds, debentures etc. Mutual funds can thus be considered as financial intermediaries in the
investment business that collect funds from the public and invest on behalf of the investors.
Mutual funds issue units to the investors. The appreciation of the portfolio or securities in
which the mutual fund has invested the money leads to an appreciation in the value of the
units held by investors. The investment objectives outlined by a Mutual Fund in its
prospectus are binding on the Mutual Fund scheme. The investment objectives specify the
class of securities a Mutual Fund can invest in. Mutual Funds invest in various asset classes
like equity, bonds, debentures, commercial paper and government securities. The schemes
2)Equities
Equity trading is the buying and selling of company stock shares. Shares in
large publicly-traded companies are bought and sold through one of the major stock
exchanges, such as the Bombay Stock Exchange, National Stock Exchange, which serve as
managed auctions for stock trades.
Share or stock is a document issued by a company, which entitles its holder to be one of the
owners of the company. A share is issued by a company or can be purchased from the stock
market.
Share market where dealing of securities is done is known as share market. There are two
ways in which investors gets share from market:
Primary market: markets in which new securities are issued are known as primary market.
This is part of the financial market where enterprises issue their new shares and bonds. It is
characterized by being the only moment when the enterprise received money in exchange for
selling its financial assets.
Secondary Market: Market in which existing securities are dealt is known as secondary
market. The market where securities are traded after, they are initially offered in the primary
market. Most trading is done in the secondary market.
The Stock Market is an invisible market that trades in stocks of various companies belonging
to both the public and private sectors. The Indian Stock Market is often referred to as the
Share Market since it deals primarily with shares of various companies.
A Stock Exchange is a place where the stocks are listed and traded. Such exchanges may be a
corporation or mutual organization which specializes in the business of introducing the sellers
with the buyers of stocks and securities.
The Bombay Stock Exchange (BSE) was established in 1875.The BSE India Stock Exchange
serves as the most important for companies to raise money. The chief function of the Stock
Market of India is to help raise money as capital for the growth and expansion of various
private and public sector enterprises. Besides, the Stock Market of India provides able
assistance to the individual investors through daily updates on current position of the stocks
of the respective companies that are enlisted in the Stock Index in which the movement of
prices in a section of the market are captured in price indices. The popular acronym for Stock
Index is Sensitive index or sensex. Moreover, the liquidity provided by the exchange enables
the investors to sell securities owned by them easily and quickly. Hence a person, who is
subjected to sudden dearth of funds, can immediately sell his shares for cash in India Stock
Market.
The BSE Sensex, also known as “BSE 30” is a widely used market index not only in India
but across Asia. In terms of volume of transactions, it is ranked among the top five stock
exchanges in the world.
The National Stock Exchange of India Ltd. (NSE), set up in the year 1993, is today the
largest stock exchange in India and a preferred exchange for trading in equity, debt and
derivatives instruments by investors. NSE has set up a sophisticated electronic trading,
clearing and settlement platform and its infrastructure serves as a role model for the securities
industry. The standards set by NSE in terms of market practices; products and technology
have become industry benchmarks and are being replicated by many other market
participants.
NSE provides a screen-based automated trading system with a high degree of transparency
and equal access to investors irrespective of geographical location. The high level of
The exchange has a network in more than 350 cities and its trading members are connected to
the central servers of the exchange in Mumbai through a sophisticated telecommunication
network comprising of over 2500 VSATs.
NSE has around 850 trading members and provides trading in equity shares and debt
securities. Besides this, NSE provides trading in various derivative products such as index
futures, index options, stock futures, stock options and interest rate futures.
In addition to these organizations there are other organizations highlighting on the share
trading in the Indian Stock Market are:
3)Commodities
Do you think gold prices will go up further?
Are you sure that crude oil prices are going to fall?
Have you heard that the soya crop this year is bad and will result in soya prices going up?
If you believe that these predictions have a good chance of coming true and are willing to
bet some money on them, you could try your hand at playing the commodity futures market.
A commodity is a basic good representing a monetary value. Commodities are most often
used as inputs in the production of other goods or services. With the advent of new online
exchange, commodities can now be traded in futures markets. When they are traded on an
exchange,
Commodities must also meet specified minimum standards known as basic grade.
Types of Commodities
4) Bonds
Bonds refer to debt instruments bearing interest on maturity. In simple terms,
organizations may borrow funds by issuing debt securities named bonds, having a fixed
maturity period (more than one year) and pay a specified rate of interest (coupon rate) on the
principal amount to the holders
It is a fixed income (debt) instrument issued for a period of more than one year with the
purpose of raising capital. The central or state government, corporations and similar
institutions sell bonds. A bond is generally a promise to repay the principal along with a fixed
rate of interest on a specified date, called the Maturity Date.
Successful investing in Capital Markets demands ever more time and expertise. Investment
Management is an art and a science in itself. Portfolio Management Services (PMS) is one
such service that is fast gaining eminence as an investment avenue of choice for High Net
worth Investors (HNI). PMS is a sophisticated investment vehicle that offers a range of
specialized investment strategies to capitalize on opportunities in the market. The Portfolio
Management Service combined with competent fund management, dedicated research and
technology, ensures a rewarding experience for its clients.
6) Loan
A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of
financial assets over time, between the lender and the borrower.
In a loan, the borrower initially receives or borrows an amount of money, called the principal,
from the lender, and is obligated to pay back or repay an equal amount of money to the lender
at a later time. Typically, the money is paid back in regular installments, or partial
repayments; in an annuity, each installment is the same amount. The loan is generally
provided at a cost, referred to as interest on the debt, which provides an incentive for the
lender to engage in the loan. In a legal loan, each of these obligations and restrictions is
enforced by contract, which can also place the borrower under additional restrictions known
as loan covenants.
Acting as a provider of loans is one of the principal tasks for financial institutions. For other
institutions, issuing of debt contracts such as bonds is a typical source of funding.
7) Insurance
Insurance is a basic form of risk management which provides protection against
possible loss to life or physical assets. A person who seeks protection against such loss is
termed as insured, and the company that promises to honor the claim, in case such loss is
actually incurred by the insured, is termed as Insurer. In order to get the insurance, the
insured is required to pay to the insurance company (i.e. the insurer) a certain amount, termed
as premium, on a periodical basis (say monthly, quarterly, annually, or even one-time).
We are a pan-India financial services organization across 1,361 business locations and a
presence in 428 cities. Our global footprint extends across geographies with offices in New
York, Singapore and Dubai. We are listed on the Bombay Stock Exchange (BSE) and the
National Stock Exchange (NSE).
We offer a wide range of services and products comprising broking (retail and institutional
equities and commodities), wealth management, credit and finance, insurance, asset
management and investment banking.
We are registered with the BSE and the NSE for securities trading, MCX, NCDEX and
DGCX for commodities trading, CDSL and NSDL as depository participants. We are
registered as a Category I merchant banker and are a SEBI registered portfolio manager. We
also received the FII license in IIFL Inc. IIFL Securities Pte Ltd received approval from the
Monetary Authority of Singapore to carry out corporate advisory and dealing in securities
operations. Two subsidiaries – India Infoline Investment Services and Moneyline Credit
Limited – are registered with RBI as non-deposit taking non-banking financial services
companies. India infoline Housing Finance Ltd, the housing finance arm, is registered with
the National Housing Bank.
In 1999, The IndiaInfoline Group identified the potential of the Internet to cater to a
mass retail segment and transformed our business model from providing information services
to institutional customers to retail customers. Hence we launched our Internet portal,
www.indiainfoline.com in May 1999 and started providing news and market information,
independent research, interviews with business leaders and other specialized features.
In May 2000, the name of our Company was changed to India Infoline.com Limited
to reflect the transformation of our business. Over a period of time, we have emerged as one
of the leading business and financial information services provider in India.
In the year 2000, The India Infoline Group leveraged it’s position as a provider of
financial information and analysis by diversifying into transactional services, primarily for
online trading in shares and securities and online as well as offline distribution of personal
financial products, like mutual funds and RBI Bonds. These activities were carried on by our
wholly owned subsidiaries.
The India Infoline Group’s broking services was launched under the brand name of
5paisa.com through our subsidiary, India Infoline Securities Private Limited and
www.5paisa.com, the e-broking portal, was launched for online trading in July 2000. It
combined competitive brokerage rates and research, supported by Internet technology
Besides investment advice from an experienced team of research analysts, we also offer real
time stock quotes, market news and price charts with multiple tools for technical analysis.
The India Infoline group, comprising the holding company, India Infoline Ltd (NSE:
INDIAINFO, BSE: 532636) and it’s subsidiaries, is one of the leading players in the Indian
financial services space. India Infoline offers the entire gamut of financial services covering
investment products ranging from Equities and derivatives, Commodities, Portfolio
Management Services, Mutual Funds, Life Insurance, Fixed deposits, Loans, Investment
Banking, GoI bonds and other small savings instruments. It owns and manages the website,
www.indiinfoline.com, which is one of India’s leading online destinations for personal
finance, stock markets, economy and business.
A network of 753 business locations spread over 346 cities across India, facilitates the
smooth acquisition and servicing of a large customer base. All these offices are connected
with the corporate office in Mumbai with cutting edge networking technology.
IndiaInfoline refers to IndiaInfoline Ltd and its subsidiaries. The consolidated figures will
give a more meaningful picture of the Company to the investors. Reference to the company
or IndiaInfoline is to the business done by the company and its subsidiaries, unless otherwise
specified.
VISION
Our vision is to be the most respected company in the financial services space.
MISSION
“To become a full-fledged financial services company known for its quality of advice,
personalized services and cutting edge technology”
COMPANY PHILISOPHY
The IndiaInfoline Group is committed to placing the Investor First, by continuously striving
to increase the efficiency of the operations as well as the systems and processes for use of
corporate resources in such a way so as to maximize the value to the stakeholders. The Group
aims at achieving not only the highest possible standards of legal and regulatory compliances,
but also of effective management.
IndiaInfoline Limited is listed on both the leading stock exchanges in India, viz. the Stock
Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and is also a member of
both the exchanges. It is engaged in the businesses of Equities broking, Wealth Advisory
Services and Portfolio Management Services. It offers broking services in the Cash and
Derivatives segments of the NSE as well as the Cash segment of the BSE. It is registered with
NSDL as well as CDSL as a depository participant, providing a one-stop solution for clients
trading in the equities market. It has recently launched its Investment banking and
Institutional Broking business.
Over the last five years, India Infoline sharpened its competitive edge through the
following initiatives:
Multiple-trading options :
The Company harnessed technology to offer services at among the lowest rates in the
business.
Membership:
The Company widened client reach in trading on the domestic and international exchanges.
Technology :
The Company provides a prudent mix of proprietary and outsourced technologies, which
facilitate business growth without a corresponding increase in costs.
Service :
Clients can access the customer service team through various media like toll-free lines,
emails and Internet- messenger chat for instant query resolution. The Companies customer
service executives proactively contact customers to inform them of key changes and
initiatives taken by the Company. Business World rated the Companies customer service as
Best in their survey of online trading sites carried out in December 2003.
Key features :
Membership on the Bombay Stock Exchange Limited and the National Stock Exchange
Commodities
India Infolines extension into commodities trading reconciles its strategic intent to emerge
as a one stop solutions financial intermediary. Its experience in securities broking has
empowered it with requisite skills and technologies. Increased offering: The Companies
commodities business provides a contra-cyclical alternative to equities broking. The
Company was among the first to offer the facility of commodities trading in Indias young
commodities market (the MCX commenced operations only in 2003). Average monthly
turnover on the commodity exchanges increased from Rs 0.34 bn to Rs 20.02 bn. The
commodities market has several products with different and non-correlated cycles. On the
whole, the business is fairly insulated against cyclical gyrations in the business.
Complete solution :
The Company provides a complete - advice to execution solution facilitated by information
and advice on likely commodity trends in the Indian and international environment.
Technology :
The Company has extended the trading terminal to the investors home/workplace
reinforced with real-time commodity information and ledger position.
Rates :
The Company harnessed technology to offer services at among the lowest rates in the
business. Membership: The Company widened client reach in trading on the domestic and
international exchanges.
Key Features :
Enjoys memberships with the MCX and NCDEX, two leading Indian commodities
exchanges
Recently acquired membership of the DGCX
Multi-channel delivery model, making it among the select few to offer online as well as
offline trading facilities
Extended commodity trading to retail investors, among the few Indian financial
intermediaries to do so
INSURANCE
An entry into this segment helped complete the client's product basket; concurrently, it graduated
the Company into a one stop retail financial solutions provider. To ensure maximum reach to
customers across India, we have employed a multi pronged approach and reach out to customers
via our Network, Direct and Affiliate channels. Following the opening of the sector in 1999-2000,
a number of private sector insurance service providers commenced operations aggressively and
helped grow the market.
Over the last five years, India Infoline sharpened its competitive edge in this business segment
through the following initiatives:
Client base :
Grew its 40,000 strong client base through knowledge-led analysis, translating into an attractive
opportunity to cross-sell products and generate referral business.
Distribution network :
Invested in a distribution network of 177 branches across 19 states, which provided it with an
unmatched reach within its segment.
Hands-on training :
Invested aggressively in training its field force more than 100 hours a year in product attributes
across the insurance sector - highlighting various product details and marketing skills apart from
regular meets where best practices are shared.
Technology :
The Company provides a prudent mix of proprietary and outsourced technologies, which facilitate
business growth without a corresponding increase in costs.
The Company is the biggest corporate agency in India for life insurance products
The Company operates multiple channels, namely branch network, preferred client
group, direct marketing, corporate tax advisory, walk-ins and seminars, to reach out to
customers.
INVEST ONLINE
India Infoline has made investing in Mutual funds and primary market so
effortless. All you have to do is register with us and that’s all. No paperwork no
queues and No registration charges.
If you are 5p customer use your existing login ID and Ledger (fund transfer) password.
Indiainfoline offers you a host of mutual fund and IPO choices under one roof; backed by
in-depth information and research to help you invest effortlessly.
INVEST IN MF
Indiainfoline offers you a host of mutual fund choices under one roof, backed by in-depth
research and advice from research house and tools configured as investor friendly.
Investing in Mutual Funds has never been easier
APPLY IN IPOs
You could also invest in Initial Public Offers (IPOs) online without going through the
hassles of filling ANY application form/ paperwork.
Get in-depth analyses of new IPOs issues (Initial Public Offerings) which are
about to hit the market and analysis on these recent IPO listings,
prospectus/offer documents, and IPO reports are few of the features, which help
you, keep on top of the IPO markets.
Home Loan
Land Loans
Balance Transfer
As long as you want to buy a house in India, you can apply for a Home Loan. You could be a
Resident Indian or an NRI; you could want to buy a property now or in the future, but you
may still apply for a Home Loan. In case you go with the last option and want to wait before
you consider nests, all you have to be sure of is the amount you are willing to spend on this
property and the HfIs will let you know your eligibility based on your income which will help
you plan out your budget. To find out your eligibility, please use our calculator.
You are allowed to visit zoos on the condition that you do not feed the animals. When you're
18, you are allowed to go for that late night party on the condition that someone drops you
home before 12. Every step we take requires condition to be fulfilled. Similarly, these are the
general terms & conditions of a Home Loan. For more details, please refer to the individual
product.
LTV Ratio will not exceed a particular percentage. This percentage differs from HFI
to HFI and the components of the value of property are covered in Cost of Property
Elastic can be stretched only to a certain extent. The loan tenure also will not go
beyond 20 years. However, HFIs do provide for different tenures with different terms
and conditions.
Your EMI normally does not exceed 50% of your Gross Monthly income.
The total monthly payment towards all the loans you have availed of, including the
present one, will normally not exceed 50% of your Gross Monthly Income.
Your loan eligibility is calculated using LTV, IIR and FOIR norms and the lowest
from the three is chosen.
Your profile is considered by the HFI before your repayment capacity is judged.
The different kinds of charges applicable to Home Loans are listed below:
Upfront Fees
Rate of Interest
Legal and Technical Charges
Stamp Duty and Registration Charges
Personal Guarantee from Charges
Cheque Bounce Charges
Delayed Payment Charges
Additional Charges
Incidental Charges
Prepayment Charges
PDC Swapping Charges
Some HFIs charge you for the legal and technical checks undertaken on your documents and
property, by lawyers and the technical team of the HFI.
If you go in for a registered mortgage, these charges incurred by the HFI are passed onto
you. Sometimes these charges are rather heavy depending on the State laws in the state from
where you purchase your property.
A piece of paper signed does not have much value unless stamped and validated by the
concerned authority. That power of attorney document that you signed with your spouse
would not be credible unless signed on a Rs.100 stamp paper. Similarly, HFIs currently
charge you a minimum of Rs.100 to get the personal guarantee validated and stamped in the
eyes of the law.
In case you want to exchange the PDCs you gave the HFIs for EMI repayments because of a
change in bank accounts, a change in EMI amount, etc., the HFis might charge a flat fee for
it.
Repayment capacity
Your repayment capacity is judged according to your income and your income is considered
differently if you are salaried and differently if you are self-employed. Income is used to
calculate the amount of money that you will be able to shell out every month towards your
loan installment using IIR and FOIR norms. FOIR calculation also takes into account the
installments of loans you are currently repaying. The lower between the IIR and FOIR is
chosen as your maximum repayment capacity. This is then compared to the loan amount that
you have requested for and the loan eligibility as per LTV norms and the lowest of these
would be your final loan eligibility.
Credit Documentation
Would you trust any Tom, Dick or Harry with any matter at all? We all require a certain
assurance from people before we trust them; some sort of guarantee that they are trustworthy.
For HFIs this guarantee rests in the form of tangible documents. Credit documents are
required by all HFIs but vary in kind based on your occupation, employer, qualifications,
experience, etc. Credit documents can be classified as
Income documents:
Money money money...no one can take a chance on the credibility of money matters because
at the end of the day, business is business. Almost everything about your loan is based on
your income and therefore proof regarding the same is required by the HFI to ensure that no
miscommunications occur.
Personal documents:
Previously, tribes and clans had passwords without which you could not enter into the
territory; as proof of who he was, King Solomon had a ring as identification. Throughout
history, proof of identity has been important as mistaken identity has never been uncommon.
To prevent any such shams, HFIs also require a set of documents, for a general Home Loan
Product, identifying who you are.
Legal Documentation
We might be living in the electronic age but that doesn't take away the importance and
monopoly of paper as everything to do with law will always be on paper. To stick by this
unwritten rule, there are legal documents that need to be submitted by you to the HFI for
mortgaging and these differ from state to state and also depend on your property type. The
following form a broad outline of the documents required and a detailed list can be found
here.
These documents do NOT cover the entire list needed and if it is a resale property, the
pertaining agreements, etc. will also need to be attached.
Tax Benefits
Tax benefits are currently available only under Home Loans and Home Extension loans. The
details are given under the respective sections.
News Letter
The Daily Market Strategy is your morning dose on the health of the markets. Five intra-
day ideas, unless the markets are really choppy coupled with a brief on the global markets
and any other cues, which could impact the market. Occasionally an investment idea from
the research team and a crisp round up of the previous day's top stories. That's not all. As a
subscriber to the Daily Market Strategy, you even get research reports of India Infoline
research team on a priority basis.
The IndiaInfoline Weekly Newsletter is your flashback for the week gone by. A weekly
outlook coupled with the best of the web stories from India Infoline and links to important
investment ideas, Leader Speak and features is delivered in your inbox every Friday
evening.
It is all about your money, being managed by the experts, while you continue with your
routine life. Isn't it simple and totally hassle free.
What's more, you can keep track of your dividends / bonus / rights issues with paperless
tracking. So you always know how fast your investment is growing. It basically means
assigning the right job to the right person.
Research
IIFL special research cell where some of India's finest financial analysts bring you
intensive research reports on how the stock market is faring, when is the right time to
invest, when to execute your order and more.
IIFL make sure that investors are always prepared to make own investment decision when
the opportunity arises.
IIFL bring you intensive research reports - whether sectoral or company-wise or more - that
tell you exactly when and where to invest. So whenever there is an exciting investment
opportunity, you are in the know and always ready to invest. Research reports IIFL will help
you choose your investments wisely, without wasting time. Presented in a lucid and easy-to-
understand format; these reports help you make informed decisions.
The group recently commenced its offshore asset management business under the ‘IIFL
Capital’ brand. Also, IIFL Securities Pte Ltd received approval from the Monetary
Authority of Singapore to carry out global asset management operations. The Singapore arm
can now offer broking, asset management and investment banking services.
IIFL Inc received an FII license, thereby facilitating the investment of dedicated funds in
India.
With offices in New York, Singapore and Dubai, IIFL Capital aims to offer India-focused
equity products, fund management and advisory services for offshore and domestic wealth
management customers.
Incorporated as an equity research and consulting firm with a client base that included
leading FIIs, banks, consulting firms and corporates.
1999
2000
Commenced the distribution of personal financial products; launched online equity trading;
entered life insurance distribution as a corporate agent. Acknowledged by Forbes as ‘Best of
the Web’ and ‘...must read for investors’.
2004
2005
2006
2007
2008
Launched wealth management services under the ‘IIFL Wealth’ brand; set up India Infoline
Private Equity fund; received the Insurance broking license from IRDA; received the venture
capital license; received inprinciple approval to sponsor a mutual fund; received ‘Best broker-
India’ award from FinanceAsia; ‘Most Improved Brokerage- India’ award from Asiamoney.
Received registration for a housing finance company from the National Housing Bank;
received ‘Fastest growing Equity Broking House - Large firms’ in India by Dun &
Bradstreet.
Retail broking:
IndiaInfoline has around 3 lakh customers. It has a tie-up with Bank of Baroda
for e-broking.
Institutional broking:
IndiaInfoline has roped in Bharat Parajia, director of sales at CLSA in
Singapore, H Nemkumar, CLSA's country head for India, Aniruddha Dange, CLSA's
head of research in India, and Vasudev Jagannath, CLSA's head of sales in India.
While Parajia will join as head of institutional sales at India Infoline, Dange will be
head of research and Nemkumar head of investment banking.
Consumer Finance:
During the quarter, it managed a book size of Rs 25 crore and has suffered a loss of
Rs 5.5 crore. It expects to break even in 2-3 quarters. NIM of 6-8% on personal loans
and 3-4% on home refinancing. It is looking at a Rs 200 crore private-equity funding
for its consumer finance subsidiary. It intends to leverage its extensive branch
network to expand its consumer finance division to tier-II and tier-III cities in the
Ticker: 532636
Exchanges: BOM
Major Financial
Industry:
Sub Securities
Industry: Brokerage
Country: INDIA
Employees: 14105
Competition related - due to high brand proliferation, the market from a consumer standpoint
has become “commoditized” given product parity in terms of offerings.
Brand related - challenge being to maintain high decibel and impactful communication on a
sustained basis.
Key executives
S.No Name Designation
Market Positioning:
Market positioning statements of India Infoline are “At India Infoline we give you
single window service” and “We also ensure your comfort”. So, India Infoline focus on the
consumers who prefer almost all investment activities at same place by providing number of
various financial services. At India Infoline a person can purchase or sell shares, debentures
etc. and at the same place also demat it. India Infoline also provides other investment option
to the same person at same place like Mutual Fund, Insurance, Fixed Deposit, and Bonds etc.
and help the person in designing his portfolio. By this way India Infoline provides comfort to
its customers.
Target Market:
India Infoline uses demographic segmentation strategy and segment people based on
their occupation. India Infoline uses selective specialization strategy for market targeting.
Target person for the India Infoline Stock Broking and India Infoline Investment Service are
persons who can work as sub-broker for the companies. Companies focus on Advisors of
Insurance and post office, Tax consultants and CAs for making sub-broker
India Infoline uses one level marketing channel for investment product distribution.
Sub-brokers work as intermediary between consumer and company. Company has both
forward and backward flow of activity through channel. Company distributes stationery,
brokerage, and information forward to its sub-broker. The sub-brokers send filled forms,
queries, amount of investment etc. back to the company.
India Infoline provides training to the sub-brokers because they will be viewed as the
company by the investors. The executives of India Infoline explain various new schemes of
investment to the sub-brokers with its objective, risk factors and expected return. Company
also periodically arrange seminar to guide sub-brokers.
India Infoline also publishes its weekly Stock Market Newsletter ‘Market Mantra’.
HUMAN RESOURCES
The India Infoline Group’s Human Resources policy is based on the philosophy of “Owner
Mindset”. We believe that the key to our continued growth lies in unleashing the
entrepreneurial energy of our employees. We encourage all employees to behave more as
51owners of their departments rather than employees. Our people are highly driven and work
towards increasing India Infoline’s brand and market share across product lines.
We have developed extensive in-house training modules. In addition, our staff is trained by
various Asset Management Companies and ICICI Prudential Life Insurance Company
Limited. We lay emphasis on “on the job training” where an experienced and senior person
mentors a junior executive.
In addition to salary, our employees get performance-based incentives on a quarterly basis.
We have also implemented an Employee Stock Option Plan.
As on December 31, 2009, the total employee strength of our company and our subsidiaries
was 1200.
To know percentage of people invest in mutual fund, insurance, equity and other
financial products and services.
To know future prospects of their investment in the financial products and
services.
Primary data:-
Primary data are data freshly gathered for a specific purpose. The various sources of
primary data for my project are as follows.
Banks.
Local residents.
People from industries
Mall
Small Retailers
Secondary Data:-
Secondary data provide a starting point for research and offer the valuable source of
information.
The secondary data was the most important source for my project because it gave us
information about company profile, competitors, market scenario, market share, etc.
It also give us information of the financial industry, its emergence,& its importance in
country progress.
We used secondary data for following sources:
Internet
Indiainfoline brochure
Stock Analysis :
Indiainfoline stock research has performed very well over the past few years
and the Indiainfoline Model Portfolio has consistently outperformed the benchmark
indices. The fundamentals of select scrips are thoroughly analyzed and an actionable
advice is provided along with investment rationale for each scrip.
Flash News :
Key developments and significant news announcements that are likely to have
an impact on markets / scrips are flashed live on trading terminals. Flash news keeps
the market participants updated on an online basis and helps them to reshuffle on their
holdings.
Nifty Tracker :
Nifty Futures is the most traded instrument with highest volumes in F & O and
excellent liquidity. The team tracks the Nifty Future and generates calls based on
unique trading system which is a result of their focused research over the past few
years. The objective is to generate positive returns for traders who are looking for a
high risk / high reward product.
Online Chart :
An online forum to help clients, specifically day traders in judging the
directions of the market and stocks which are in the limelight.
Intraday Calls :
For day traders, indiainfoline provides intra-day calls with entry, exit and stop
loss levels during market hours. These calls are flashed on their terminals. Their
analysts continuously track the calls and provide recommendations according to the
market movements.
Position Calls :
Indiainfoline “Position Trading Calls” are based on thorough analysis of the
price movement in select scrip’s. These calls are for a 10-15 day time span with stop
loss and target levels. These calls are flashed on their terminals during market hours.
Derivative Strategies :
Their analysts take view on the Nifty and select stocks based on the
derivatives data and technical tools. Suitable “Derivative Strategies” are devised,
which are flashed on their terminals and published in their reports.
Futures Calls :
A customized product for HNIs to help them trade with leveraged position;
wherein clients are advised on the stocks with entry, exit and stop loss level for short
OTHER ADVATAGES
Advancements in Internet and Internet-based trading have transformed the way firms
operate in the broking industry. We recognize that technology is an important tool for
broking operations.
We believe that online trading will gain market share due to significant advantages that it
offers
It enables the customer to trade directly without any agent intervention
It offers customers the convenience of trading from almost anywhere
It enables rapid dissemination of information and at reduced costs
It offers a responsive mechanism for reporting grievances, problems and bugs
The IndiaInfoline Group have invested in technology and ensured that we have an
optimum infrastructure to handle the load. Our current technology infrastructure comprises
several high ends Dell, HP, IBM servers running on Microsoft Operating System. Most of
these servers support online customers for trading activities and users for the
www.indiainfoline.com and www.5paisa.com websites.
The IndiaInfoline Group’s main trading servers (application and database servers) are
located at our Goregaon office and our broadcast servers are hosted at VSNL and Reliance
Internet Service Providers (ISP). Our website is hosted with Net Magic Solutions, another
ISP. All the three ISPs and our Goregaon office are equipped with latest servers and
uninterruptible power supply systems. The Goregaon office is connected to the internet by
optic fiber to Net Magic Solutions which gives us bandwidth of more than 10Mbps
expandable to 20Mbps. Our connectivity between the internal and external servers is through
this fiber connection.
Net Magic Solutions sources bandwidth from VSNL and Bharti, thereby providing us
with redundancy in the event of a failure of one of the provider’s gateway. By co-locating
some servers with Reliance Infocom we have further increased our redundancy.
The IndiaInfoline Group has implemented CISCO Pix firewall, managed by Net Magic.
All our servers, routers and desktops are behind this firewall. All connections to our trading
SWOT Analysis:
Strengths
Weaknesses
Opportunities
• Changing demographics with higher disposable income and increasingly complex financial
instruments will drive demand for investment advisory services
• Rapid penetration of Internet and computers means that technology enabled financial
services will gain market share
Threats
• Economic slowdown
• Volatile movement in indices events like May 17, 2004
• Stock markets falls will have a cascading effect on our mutual fund mobilization
• Increase/decrease in interest rate can affect our debt/ income fund mobilizations
Intensity of Competition:
Lot of brokerage companies are moving towards consolidation with the smaller ones
becoming either franchisees for the larger brokers or closing operations.
Supplier Power
Year 2007-08
List Revenue Profit before Profit after tax
interest,
depreciation and
tax
Indiainfoline Ltd. 6,724.4 2,772.5 1,286.9
India Infoline 1,522.1 1,208.9 315.5
Investment
Services Ltd
Moneyline Credit 113.2 19.4 20.7
Ltd
India Infoline 18.4 71.3 56.0
Distribution
Company Ltd
Services Ltd
Services Ltd
Commodities Ltd
Research Services
Ltd
This is the tabel represents the Revenue, profit before interest, depreciation and
tax in each and every segement of IndiaInfoline and profit after tax in each and
every segment. If we see this table we will find that the total revenu for 2008-09
was 10235.9, and 4022.2 is his profit before interest, depreciation and tax which
is
4022.2 * 100 =39.3%
10235.9
And if we calculate the profit on total revenue it will be
And if we calculate the total Interest, depreciation and tax they will be
4022.2-1639.3=2382.9
Rs. Mn
Lists 2007-08 2007-06
Gross Income 6724.4 2867.2
Profit before interest, depreciation and 2,772.5 983.4
taxation
Less: Appropriations
Dividend:
pursuant to merger)
2009 2008
INCOME
Sales Turnover 542.27 616.11
Excise Duty 0.00 0.00
Net Sales 542.27 616.11
Other Income 29.34 27.29
Stock Adjustments 0.00 0.00
Total Income 571.61 643.61
EXPENDITURE
Raw Materials 0.00 0.00
Power & fuel Cost 0.00 0.00
Employee Cost 136.91 128.79
Other Manufacturing Expenses 93.32 105.93
Selling & Admin Expense 112.16 119.13
Miscellaneous Expense 41.03 39.67
Preoperative Exp. Capitalists 0.00 0.00
Total Expenses 383.42 393.42
OPERATING PROFIT 158.85 222.59
PBDIT 188.19 249.88
Interest 11.15 22.82
PBDT 177.04 227.04
Depreciation 25.56 19.44
Other Written Off 0.00 0.00
Profit Before Tax 151.48 207.62
Extra Ordinary Items 2.23 -0.53
PBT(post extra-ord items) 153.71 207.09
Tax 47.88 78.39
Reported Net Profit 105.83 157.73
Total value Addition 383.42 393.53
Preferred Dividend 0.00 0.00
Equity Dividend 79.45 34.36
Corporate Dividend Tax 13.50 5.82
Per Share Data
Share in Issue(in Lakhs) 2,834.00 571.03
This is the Profit and loss account for the years 2007-08 and 2008-09. In which we can see
that the turnover, sale and other profits have decreased from the 2007-08 to 2008-09, which is
an impact of recession.
The total income is also decreased from 643.61 to 571.61 in 09, which is around 11.19% of
the previous year or 72 cr.
In the expenditure part of 2008-09 as compare to previous yes it has also decrease from 393
to 383 which is around 3%. In this the total is decreased instead of increase in employee cost
and Miscellaneous Expense to gain the better profit.
Operating profit was decrease from 222 to 158, approximate 28.82%, from the year 2007-08
to 2008-09.
Earning per share has come down from 27.62 to 3.73 which is 90%
This is the Balance sheet of IndiaInfoline showing the comparison for the period of 2007-08
and 2008-09.
In this we can see that the total has come down from 1180 to 1049 in 2008-09 period. Which
is all the impact of recession not only on this broking firm, on all others too, the same impact
was their in this period, their is a cost cutting and reduction on other expenses.
The biggest of this can be seen on the liability side on unsecured loans which has come down
from 130.57 to 00.10, which is more then 99%, organization has increased his cash from
61.62 to 264.10 for the period of 2008-09 as compare to 2007-08.
This table represent the comparision between the indiainfoline and other share broking firms
or inverstment organisation, which includes last price of share, market capital, sales turnover,
net profit and total assets.
Last Price
1400
1200
1000
800
600
400 Series 1
200
0
This graph shows thr last share price of the organisation, in this we can see that Nalwasons
investment has the highest share price, as compare to others it is very high. The indiainfoline
stand very short in this.
When it comes to market capital the Indiabulls has the highest market capital, and second is
Indiainfoline just behind of Indiabulls and rest other are no ware in this graph.
SALES TURNOVER
2500
2000
1500
1000
When we talk about sales turnover of the broking firm, or investment organisation again the
indiabulls has the hight sales turnover, as compare to other its very high, other stand no ware
infront of him, but still indiainfoline manages second position.
The profit is the main aim of each and every organsation. In other factore indiabulls is ahead
of all and indiainfoline but here indiainfoline beats all others including indiabulls.
Indiainfoline’s profit is just ahead of indiabulls.
There are two vacent place which indicates no profit, but it is not like that, here it means loss
both HSBC and NETWORK 18 has suffered a loss of 15.21 and 19.41 respectively.
TOTAL ASSETS
2000
1800
1600
1400
1200
1000
800
600
400 TOTAL ASSETS
200
0
From this table the coloum of indiabulls has been removes just me make this take appropriate
and attractive, because the total assets of Indiabulls is more then 14700 (NOT SHOWN IN
GRAPH) where as the total of all others is 6996 only.
But finally we can conclude that the Indiainfoline has manage to get the highest net profit
among all his competitors.
This is comparative study based on the charges made by Indiainfoline and other broking
firms. In this it take lowest charge to open an accout and providing an appropriate brokerage
to his clients as compare to few others. And low margin money and it has a total of more then
600 branc all over India, which is very good in number and very less as compare to Reliance,
kotak securities, ICICI securities and Religare, so that they can provide a proper attention
towards his clients and manages thaind in better was, that’s the reason we have seen about
they have good amout of net profit with less investment.
That’s the reason they have a line “ITS ALL ABOUT MONEY, HONEY”
Margin money of India infoline is higher than other firm like Indiabulls,Geojit,Motilal
Oswal,there is no restriction of margin moneye.But in India Infoline,the minimum
margin money should be 5000/2555 rs..
Exposure is less than other firms. India Infoline offers eight times exposure on margin
where as Religare and Indiabulls offer twenty times exposure on margin money.
HDFC, ICICI direct provide their customer’s three types of account (de-mat a/c,
trading a/c, bank a/c) but India infoline provide only De-mat a/c and Trading a/c.
Religare takes Rs.299 for lifetime services, where as India infoline takes Rs.555.
Relationship manager changes many times, it creates problem for the offline customers
.
India Infoline has hidden charges, Customer are not much aware about that.
Most of the customers approach towards the broking firm is through the relationship
manager.
Most of the people are not much aware of share market and its benefit.
The company should reduce the margin money. It can help to acquire more
customers, if the firms bring plans for no boundation of margin money.
The Company should increase their focus on the less margin money customers also .It
can help to make more customers of low margin money which can increase the
revenue of the firm. The Relationship managers focus only to the high margin money
customer because from them they will get high brokerage that should not be happened
from the less margin money customer.
The Company should increase Exposure. It is the good tool to capture the market.
I am much thankful to india infoline for providing me the opportunity for doing training
programme in the organization as management trainee. While doing my sip in the reputed
broking firm India infoline I had got a chance for knowing and analyzing the share market. I
was also able to know about the business environment and business ethics of the business
world. I also came to know about what does a firm or an organization require or wants from a
employee or a trainee. From the survey, I found that India infoline is in the top three position
in the share market.
Websites:-
www.indiainfoline.com
www.5paisa.com
www.nse.com
www.moneycontrol.com
Book source:-
Financial management
- Khan & Jain.
Principal of financial management
-Prassana Chandra
Business Environment
- Francis Cherunilam