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CONTENTS

Executive summary
Introduction
Objective
Research methodology
Product & services
Profit of company
Analysis & Interpretation of data
SWOT analysis of Edelweiss Financial Services Ltd.
Summary of finding Edelweiss Financial Services Ltd.
My scope of work during Summer Internship Project (SIP)
Challenges faced during Summer Internship Project (SIP)
Recommendation & Suggestions
My learning from Summer Internship Project (SIP)
Conclusion
References & Bibliography
Questionnaire
Executive Summary

Edelweiss is one of the leading names in the field of financial services with relation to stock
markets and related financial services. Edelweiss has a variety of financial products to cater
to the need of the customers. Edelweiss is a research driven company which prides on the
research that it provides to its client for safe investment in the stock markets. Before entering
into retail Edelweiss used to provide research to different companies working in this field.
Edelweiss is relatively new in the market as compared its competitors but is rapidly making
progress and catching up with them. The main area that Edelweiss gets most of its revenue is
through its advisory services in the area Of Merger and Accusation.

India is one of the fastest growing economies in the world and there is lots of potential to
grown in the market. The Indian market is largely untapped as only a small section of the
population invests in the stock market. There is very little awareness of the stock market
among the population. People have a negative perception about the stock market and the
stigma attached to it.

My main aim during the internship was to convince people to invest in the stock market and
answer all there queries and take them into confidence. My job was to generate business by
opening demats account for the company and generating leads for them.

I did a variety of activity to generate business for the company through tele calling, market
visits, setting up canopy, corporate activity. During this various activities my job was to
interact with people provide them with knowledge about investment opportunities in the
stock market which would earn them handsome returns.

I faced a number of difficulties during my internship period but was able to overcome them
through my knowledge and guidance of my seniors. I also learned a great deal about how to
sell a product and convince people to buy it by solving all there queries. I also learned a great
deal about the stock market and how it works. I also learned a great deal about the stock
market and its various aspects, they way it functions and how to make investments

Overview

The company practice this core thought of “Create Ideas, Create Values” that has led to
Edelweiss becoming one of the leading financial services company in India. Its current
businesses include investment banking, securities broking, and investment management. It
provides a wide range of services to corporations, institutional investors and high net-worth
individuals. The core inspiring thought of ‘ideas creating wealth and values are protecting it’
is translated into an approach that is led
by entrepreneurship and creativity and protected by intellectual rigor, research and analysis.
The company is leading provider of financial services products and solutions to many HNI
around the country.
Approach

Client Focus Edelweiss is driven by the emphasis I place on building long-term


relationships with our clients. We work closely with our clients to equip them with the ability
to address large, fast growing market opportunities.

Execution Orientation focuses obsessively on delivering high quality execution through our
experienced team of professionals. Each team is led by senior personnel and is highly
research and ideas driven. It places strong emphasis on confidentiality and integrity in a
sensitive business environment.

Culture Edelweiss fosters a culture that is entrepreneurial and results-driven and that
emphasizes teamwork and intellectual rigor. Our team is encouraged to display higher levels
of initiative, drive, and hunger for learning and taking on additional responsibility.

Professional Integrity it place a strong emphasis on confidentiality, honesty and integrity in


our business dealings. We expect our people to maintain high ethical standards, both in their
professional and personal lives. We strive to be fair in all our dealings. I respect our
competitors.

Research Driven All our businesses are built on a research and analytics foundation. Our
understanding of underlying market trends and strong analytical expertise has resulted in a
demonstrated ability to identify emerging trends and themes early. We seek to provide the
highest quality research and investment opinions to our clients.

Share trading, whether it is online or offline is becoming acceptable these days. There are a
handful of reasons for this. Reasons like getting profit or earning money by just sitting in
home or office in front of the system. The main feature of share trading is analysis of current
market growth through stock market. There are many companies which will help customer to
know and invest in stock market by opening DE mat account; Edelweiss Financial Services
Ltd. is one of them. It is a matter of fact that how many people are really interested in share
trading and their perception towards it.

Share trading means buying and selling of company’s shares which are listed in NSE
(National Stock Exchange) and BSE (Bombay Stock Exchange). This trading is done through
DE mat account which customer has already opened in any broking company. This DE mat
account is connected with customer’s bank saving account for fund or money transfer and DE
mat account is for holding of stocks.

The banking scenario in India is itself huge, covering the different facets of the
economy. By and large, investment banks in India are itself an institution which generates
funds in two different ways. The first manner in which it works is by drawing public funds
via the capital market by way of selling stock in their company. The other way in which it
operates is to seek for venture capital or private equity, as a substitute for a stake in their
company way in which it operates is to seek for venture capital or private equity, as a
substitute for a stake in their company.

At the macro level, investment banking is related with the primary function of
assisting the capital market in its function of capital intermediation, i.e., the movement of
financial resources from those who have them (the investors), to those who need to make use
of them for producing GDP (the issuers). Over the decades, investment banks have always
suited the needs of the finance community and thus become one of the most vibrant and
exciting segment of financial services.

The project emphasizes on financial aspects of an investment banking firm through


ratio analysis, and comparison has been done with other investment banking firm, to see how
this firms are growing with respect to its financials. The study will help to understand the
competency between different investments banking firm. It also emphasises on which
company is financially strong as compared to other firms.

Many people think that share trading is risky for them in terms of money loss. Some
people are not interested in share trading because they don’t have time to trade; some of them
fears of sudden market down, some people are not interested in investment of their money in
any of the things. So it is customer’s psychology or thinking or perception towards share
trading.

Edelweiss Financial Services Ltd. having many facilities to minimize these risks and
company has successfully done that. Company started in 1995 by Rashesh Shah with
investment banking and now it enters into broking market. Edelweiss has applied strategies
like Edelstar, Edeltracker and facilities like Quant Basket, free online cum offline and weekly
picks. So now company has grown a lot to provide different and beneficial facilities to their
customer. As investment in share market through Edelweiss Financial Services Ltd. is handy
for customer with the help of relationship manager which they have to suggest where to
invest, how much to invest and when to invest.
As Edelweiss group has major role in investment banking and its past data shows
that is growing a lot in broking sector also. It will help to change perception of people
towards share trading in different way.

Study mainly related with people’s thinking towards share trading. People are not
easily accepting share trading due to their mindset to lose money in share market. To solve
this problem, first company needs to find out solution on it so that they can convince the
customer and make them to trade. This can be achieve only by making understand them about
trading, it’s profit and by providing them facilities which suits them.

Indian markets started 2008 on a positive note with the euphoria of December
continuing in full swing. In the first week of January, the Nifty traded well above the previous
resistance of 6000 mark and BSE mid and small cap indices continued to roar louder. Major
Indian indices— Nifty and Sensex— hit lower circuit levels twice during January (21 and 22)
on the back of cascading effect of global sell off and then with the forced unwinding of long
future positions that hit margin calls.

According to Edelweiss report in 2008-2009 Indian market had impact of Recession


but it was not that much effective as it was in other countries.

INTRODUCTION
“Money is better than poverty, if only for financial reason” – Woody Allen

India is a developing economy. It’s prospering in all spheres. Share Market is a


compelling determination of the economy and the financial situation of a country. Share
market is an area which fascinates each and every individual who is craving for more money.
Some common phrases are “If we want to earn just try with share market. This is a good start
to start education on investing – putting your money where it can gain greater returns then
just earning interest in a high-interest account. Investments in shares or stock can be daunting
as there is vast and various amounts of information on investments and everyone is ready and
willing to take your money.

Steps are to be taken for start Share trading:-

As beginners we should understand one thing. If we are planning to invest in share


market, first we have to categorize our self.

Are we a long term investor?

Are we a sort term investor? (Daily trading).

Long term investor:-

Its here we invest. We are most secured in this case because we don’t consider to be used
for emergency. Any company will one day have a growth curve for more we have more
chances to lose more.

Short term investor (Risky):-

Remember it’s here we play not invest.

1. Make investment break ups: If we have “x” RS in our hand don’t get carried away
to buy shares for all “x” RS. Always we should have fifty percent in our hand.
2. Reinvest only when profits: Make the profit what we earn on the first trader (if so
happens) to buy extra share. Suppose if our stock didn’t go up after first
investment wait till (may be months) till our holding goes up.

Since the liberalization, privatization and globalization, the foreign investment in our
country is booming. Share Market is a dear indicator of the developing trend prevailing in our
country. Statistics reveal that the trade volume has been increasing continuously, coupled
with the ups & downs which is a nature of share trading.

We are living in interlinked world. With growing volume of trade, it has become a
necessity that people are aware of the intricacies of the web world.

The Indian broking industry is one of the oldest trading industries that have been
around even before the establishment of the BSE in 1875. Despite passing through a number
of changes in the post Liberalization period, the industry has found its way towards
sustainable growth.

History of broking house in India:-

Stock markets refer to a market place where investors can buy and sell stocks. The
price at which each buying and selling transaction takes is determined by the market forces
(i.e. demand and supply for a particular stock).

In earlier times, buyers and sellers used to assemble at Stock Exchanges to make a
transaction but now with the dawn of IT, most of the operations are done electronically and
the stock markets have become almost paperless. Now, investors do not have to gather at the
Exchanges, and can trade freely from their home or office over the phone or through
Internet.

A broker is a person or firm that facilitates trades between customers. A broker acts
as a go between and, in doing so, does not assume any risk for the trade.

The broker does, however, charge a commission. A broking firm acts as an


intermediary between NSE and Client.

What is NSE & BSE?

1. NSE (National Stock Exchange):-


The National Stock Exchange (NSE) is a stock exchange located at Delhi, India. It
is the 9th largest stock exchange in the world by market capitalization and largest in India by
daily turnover and number of trades, for both equities and derivative trading. NSE has a
market capitalization of around US$1.59 trillion and over 1,552 listings as of December
2010. Though a number of other exchanges exist, NSE and the Bombay Stock Exchange are
the two most significant stock exchanges in India, and between them are responsible for the
vast majority of share transactions. The NSE's key index is the S&P CNX Nifty, known as
the NSE NIFTY (National Stock Exchange Fifty), an index of fifty major stocks weighted by
market capitalisation.

NSE is mutually-owned by a set of leading financial institutions, banks, insurance


companies and other financial intermediaries in India but its ownership and management
operate as separate entities. There are at least 2 foreign investors NYSE Euronext and
Goldman Sachs who have taken a stake in the NSE As of 2006, the NSE VSAT terminals,
2799 in total, cover more than 1500 cities across India NSE is the third largest Stock
Exchange in the world in terms of the number of trades in equities. It is the second fastest
growing stock exchange in the world with a recorded growth of 16.6%.

Markets:-

Currently, NSE has the following major segments of the capital market:

Equity

Futures and Options

Retail Debt Market

Wholesale Debt Market

Currency futures

Mutual Fund

Stock Lending & Borrowing

2. BSE (Bombay Stock Exchange):-

The Bombay Stock Exchange (BSE) is a stock exchange located on Dalal Street,
Mumbai and is the oldest stock exchange in Asia. The equity market capitalization of the
companies listed on the BSE was US$1.63 trillion as of December 2010, making it the 4th
largest stock exchange in Asia and the 8th largest in the world. The BSE has the largest
number of listed companies in the world.

As of December 2010, there are over 5,034 listed Indian companies and over 7700 scraps on
the stock exchange, the Bombay Stock Exchange has a significant trading volume. The BSE
SENSEX, also called "BSE 30", is a widely used market index in India and Asia. Though
many other exchanges exist, BSE and the National Stock Exchange of India account for the
majority of the equity trading in India. While both have similar total market capitalization
(about USD 1.6 trillion), share volume in NSE is typically five times that of BSE.

BSE Index Cell carries out the day-to-day maintenance of all indices and conducts research
on development of new indices. SENSEX is significantly correlated with the stock indices of
other emerging markets.

Demat Account:-

The term Demat, in India, refers to a dematerialized account for individual Indian
citizens to trade in listed stocks or debentures, required for investors by The Securities
Exchange Board of India (SEBI). In a demat account, shares and securities are held
electronically instead of the investor taking physical possession of certificates. A Demat
Account is opened by the investor while registering with an investment broker (or sub
broker). The Demat account number is quoted for all transactions to enable electronic
settlements of trades to take place.

Access to the Demat account requires an internet password and a transaction


password as well as initiating and confirming transfers or purchases of securities. Purchases
and sales of securities on the Demat account are automatically made once transactions are
executed and completed.

Objective of Demat System:-

India has adopted this system of electronic bookkeeping, eliminating the need for
paper when shares or securities are held in electronic form. Before the introduction of the
depository system by the Depository Act, 1996, the process of sale, purchase and transfer of
shares was difficult and there was a high risk of loss.
Basics of Stock Market:-

Investing in equity involves purchasing shares of a company listed on a stock


exchange. You can acquire these shares in two ways - either through the Primary Market, i.e.,
when a company makes an offer to issue its equity for the first time (this is called Initial
Public Offering (IPO)) or through the secondary market, i.e. via a stock exchange. When you
trade in equity through a stock exchange, you have to make use of the services of a brokerage
firm, which acts as your agent whenever you buy or sell.

Equity is considered a high risk-high return investment avenue. This is because there
is scope for considerable appreciation or loss of the capital that you invest, depending on
various factors such as the performance of the company that you have invested in, general
market conditions, the state of the economy, etc. However, it forms an integral part of any
well-balanced portfolio, since it is at one end of the risk-return spectrum.

How should I decide whether equity investing is right for me?

Equity is a must for any well-balanced portfolio. So, irrespective of whether you are a
high net worth investor or a small retail investor and irrespective of whether you have a large
or timid appetite for risk, you must hold some portion of your assets in equity. This is
because it is the only instrument that has the ability to truly deliver a high return, when held
over a long period of time.

However, the amount of equity that you hold in your portfolio is a very subjective
decision and will depend upon various factors. These include your investment objectives,
time horizon and risk appetite. But as a general guideline, there’s a rule of thumb that states
that to decide upon the proportion of your assets that should go into equities, reduce your age
from 100 and that’s the proportion of your money which should be put in equities. The
remaining can be invested in fixed income securities.

How should I study stocks before I make my selection?

Every investor must do some homework before investing money in equities…


 While recommendations and tips received from your broker, a friend, etc. may be the
starting point of your selection, let it not be the only reason that makes you purchase a
particular stock, even if these tips have come from ‘market experts’. Short list the
shares that you want to buy on the basis of your investment objective, risk profile and
the stock’s fundamentals.
 If you feel that the price of a stock is high, don’t purchase it. Buy stocks that you
believe still have scope for appreciation.
 Don’t try to time your purchases. That could turn you into a speculator instead of an
investor.
 Lastly, once you have purchased shares, if the business prospects of the company
change to its detriment, get rid of the stock. Don’t hesitate to liquidate your portfolio
before your target time horizon if circumstances lead you to believe that it’s
necessary.

How do I know whether I am paying the right price for the stock?

There are various factors that determine the value of a stock. Understanding these
will help you to pay a price that reflects the true value of a stock.

Demand and Supply:

In the short term, the basic economic theory of demand and supply determines a
stock’s worth. So, when the demand for a stock exceeds its supply (that is, there are more
buyers than sellers), its price tends to rise. And, when supply overtakes demand (that is,
sellers exceed buyers), the stock loses value. However, these are short-term market trends,
which tend to get evened out over a period of time. In the medium to long-term, a stock is
driven by the company’s fundamental strength i.e. business potential, past performance,
competence and credibility of its promoters and management, etc.

Growth potential:

Investors are willing to pay a premium for stocks of companies that have the
potential to increase their revenues and net profits. The greater this growth potential, the
higher the premium given to the stock. If a company proves that it is capable of sustaining
growth, the market will continue to give it high valuations. And, that’s likely to be the major
driver for stock valuations.
Fundamentals: A company’s growth outlook is linked to its business prospects and
how well its management is capitalizing on the existing opportunities. The quality of a
company’s management is crucial. So, pay attention to the management practices of a
company and its level of corporate governance.

When should I buy to minimize my costs and sell to maximize the profits?

Buy low and sell high is the ultimate guide to successful stock investing. It is also
the reverse of what many investors do, although they don’t intend to. They tend to buy high
and sell low because they use price, and in particular, the price movement, as their only
signal to buy or sell.

Investors are tempted to buy stocks that have shot up and are basking in the media
spotlight just to get a part of the action. They jump at a stock that is already trading at a
premium that’s how they buy high. Ironically, if a stock has had a good run up it may be
time to sell, not buy (sell high).

On the flip side, when a stock price is falling, most investors may want to sell in a
panic, although the company has not lost any intrinsic value and still remains a sound
investment that’s how they sell low. In fact, when a stock’s price has fallen, it’s a great time
to buy (buy low), if your research on the company suggests that it is a good long term buy.

Experienced traders can make money jumping in and out of a stock that’s caught the
public’s attention, but it’s not a game for the inexperienced and it can definitely not be called
‘investing’, in the true sense of the word. There are risks involved and tax consequences that
apply to such trading, along with other issues, which means that most investors should leave
this tricky activity to short-term traders.

What is Asset Allocation?

Asset allocation means diversifying your money among different types of


investment categories, such as stocks, bonds and cash. The goal is to help reduce risk and
enhance returns.

This strategy can work because different categories behave differently, Stocks, for
instance, offer potential for both growth and income, while bonds typically offer stability and
income. The benefits of different asset categories can be combined into a portfolio with a
level of risk you find acceptable.

Establishing a well-diversified portfolio may allow you to avoid the risks


associated with putting all your eggs in one basket.

Right allocation for an investor:-

Asset allocation decisions involve tradeoffs among 3 important variables:

 Investors’ time frame


 Their risk tolerance
 Their personal circumstances

Edelweiss is one of the leading financial services company in India. Its current
businesses include investment banking, securities and retail broking and investment
management. The core inspiring thought of ideas creating wealth and values protecting it is
translated into an approach that is led by entrepreneurship and creativity and protected by
intellectual rigor, research and analysis. At Edelweiss you can build a personal relationship
with our investment professionals. We see investing from your perspective, and offer
recommendations based on your needs and preferences. To all the investors - From access to
top research to investment guidance and portfolio planning, we offer it all!

Chairman, CEO and Founder of Edelweiss. Mr. Rashesh Shah has previously
worked for ICICI (now ICICI Bank, India’s largest private sector financial conglomerate)
where he handled a World Bank aided program for export- oriented projects. He was
subsequently with Prime Securities as Head of Research. Mr. Shah’s relentless focus is on
organization building and human capital development. He has been featured in a variety of
publications, including The Far Eastern Economic Review, Business India, Business World
and The Economic Times. Mr. Shah earned an MBA from the Indian Institute of
Management, Ahmedabad and a Bachelor’s degree in Science from the University of
Bombay.

Its Current Businesses Include:


 Investment Banking,
 Securities Broking, and
 Investment Management.
Edelweiss also provides a wide range of services to:
 Corporations,
 Institutional Investors
 High Net-Worth Individuals

Services offered by the company:

 Investment Banking.
 Institutional investment.
 Asset management.
 Wealth management.
 Private client brokerage.
 Insurance brokerage.
 Wholesale financing.

Various Products Offered by the Company:


 Products: Stocks, Derivatives, IPO, MF, Strategies
 Trading Accounts with different features: Trader, Investor
 Brokerage Plans: To suit needs of every client
 Model Portfolio based on comprehensive analysis of your investment objectives
 Advanced Data tools
 Customized investment Strategies
 Manage all asset classes under My Portfolio
 Financial Research on your fingertips
Objective of Study:-

1. To know the condition of equity market.

2. To know Pros and Cons involve in share trading.


Objective
EDELWEISS started its journey in Mumbai in the year 1995, by two IIM graduates, Mr.
Rashesh Shah and Mr. Venkat Ramaswami. Edelweiss was incorporated on November 21,
1995 as a public limited company and received its certificate for commencement of business
on January 16, 1996. It commenced investment banking activities & registered with SEBI as
a 'Category I Merchant Banker' [as defined under
the Securities and Exchange Board of India [Merchant Bankers] Rules, 1992s] and thereafter
as a 'Portfolio Manager' [as defined under the Securities & Exchange Board of India
[Portfolio Managers] Rules, 1993s] & as an 'underwriter' under the Securities & Exchange
Board of India [Underwritings] Regulations, 1993.

Entered the business of securities broking in the year 2002 by acquiring Rooshnil Securities
Private Limited which was later changed to Edelweiss Securities Private Limited & is
presently known as Edelweiss Securities Limited. The year 2004 witnessed the foray of
Comp. into the businesses of insurance advisory as well as commodities broking and trading.
The business of insurance advisory is carried through the subsidiary, Edelweiss Insurance
Brokers Limited. The subsidiary, ECAL Advisors Limited carries on the business of
commodities broking & trading. The Comp. also has its presence in non banking financial
activities through its subsidiaries, Cross border Investments Private Limited [acquired in the
year 2000s] and ECL Finance Limited [incorporated in the year 2005s] which is NBFC's.
Edelweiss Real Estate Advisors Private Limited, which was previously our subsidiary and
our subsidiary
Edelweiss Trustee Services Private Limited, were incorporated in the year 2006, for
launching the company first real estate fund which was registered with the SEBI as a 'Venture
Capital Fund' [as defined under the SEBI [Venture Capital Funds’] Regulations, 1996s]

Overview

The company practice this core thought of “Create Ideas, Create Values” that has led to
Edelweiss becoming one of the leading financial services company in India. Its current
businesses include investment banking, securities broking, and investment management. It
provides a wide range of services to corporations, institutional investors and high net-worth
individuals. The core inspiring thought of ‘ideas creating wealth and values are protecting it’
is translated into an approach that is led by entrepreneurship and creativity and protected by
intellectual rigor, research and analysis.

The company is leading provider of financial services products and solutions to many HNI
around the country.

Approach

 Client Focus Edelweiss is driven by the emphasis I place on building long-term


relationships with our clients. We work closely with our clients to equip them with
the ability to address large, fast growing market opportunities.

 Execution Orientation focuses obsessively on delivering high quality execution


through our experienced team of professionals. Each team is led by senior
personnel and is highly research and ideas driven. It places strong emphasis on
confidentiality and integrity in a sensitive business environment.

 Culture Edelweiss fosters a culture that is entrepreneurial and results-driven and


that emphasizes teamwork and intellectual rigor. Our team is encouraged to
display higher levels of initiative, drive, and hunger for learning and taking on
additional responsibility.

 Professional Integrity it place a strong emphasis on confidentiality, honesty and


integrity in our business dealings. We expect our people to maintain high ethical
standards, both in their professional and personal lives. We strive to be fair in all
our dealings. I respect our competitors.

 Research Driven All our businesses are built on a research and analytics
foundation. Our understanding of underlying market trends and strong analytical
expertise has resulted in a demonstrated ability to identify emerging trends and
themes early. We seek to provide the highest quality research and investment
opinions to our clients.
Research Methodology

“Research Methodology is the science of methods for conducting research work”

Research methodology is a systematic way, which consists of series of action


steps, necessary to effectively carry out research and the desired sequencing to these steps.

 Formulating the objective of the study


 Designing the methods of data collection
 Selecting the sample plan
 Collecting the data
 Processing and analyzing the data
 Reporting the findings

Objective of Study

Research Design

Sample Design

Report of findings
DataCollection
Data Analysis
Hypothesis:-

For research study, I have consider customers on the basis of their income level and
also customer like fresher on job, middle age people and government servant. So on the basis
of these consideration I find that fresher and people with high earning are more interested in
share trading than other people who have entered in their family life. And the case with
government employees is that they are happy with whatever they are earning and not
interested in investing in stock market due to the fear of losing their money. Companies are
now concentrating more on middle class families because India’s most population is middle
class and they are more concentrating on saving their money, so its big opportunity for any
broking firm to grab the market.

Scope of study:-

This study will help to understand psychology of customer towards share trading
and there advantages. This will also help companies to understand what facility exactly
customer wants from them. So that it will help in improving company’s overall internal
environment to increase customer. Consumer satisfaction and facilities to them. This study
will also help consumer to know which is the best option they have through which they can
invest their money and get very good return on it.

Data Collection:-

The study was conducted through the use of the primary and secondary data. The
various sources of the data collection are mentioned below:-

 Primary data:-
 Through customer survey by means of a closed ended questionnaire.
 Through the interviews with the company employees.
 Secondary data:-
 Through the journal and magazines
 Through the internet sites and various search engines.
 The first part of the questionnaire was given to the sample to fill it by him.

 The second part of the questionnaire was hold by the interviewee and which was filled
by him after consulting the sample.

However some of the portion of the report required Secondary data. So it was also
collected from some other sources like internet, magazines, news paper.

Research Tool Applied:-

The study is conducted through following tools which help to get more important and
sufficient data to understand people’s psychology and also help to solve the research
problems.

Research Design:-

A research design is the arrangement of conditions for collection and analysis of the
data in a manner that aims to combine relevance to the research purpose with economy in
procedure. The research design used for this study is of the descriptive type. Descriptive
research studies are those studies which are concerned with describing the characteristics of a
particular individual or a group Research design is broadly classified into three types as

 Exploratory Research Design


 Descriptive Research Design
 Causal Research Design
For the purpose of the present project the Descriptive type of research design can be
said to be most effective and most suitable, because in descriptive type of study the main
emphasis is laid down over the existing situations and not over the causes which determine
such effects. Thus for that purpose Descriptive type of study has been selected as it seems to
be most appropriate to fulfill the objective of the project.

Sample Size:-
The sample size consisting of 100 respondents were selected for the study. These are
people who are in working in good companies, some of them are government employees,
some of them are fresher on job, some are student, and some of them high earning salary. So
on the basis of these different factors their views are totally different.
Sample Design:-

In the present survey study the sample design contained the list of the Stock dealers
and Stock brokers. Later on in the project certain other persons were contacted who were
holding useful information regarding the concerned field of study. Since it is difficult to
contact the entire population, sampling technique was adopted. The employees were
interviewed using convenience sampling techniques.
Plan of Analysis:-

The activity of data analysis should move according to following sub heads:_

 Editing: The first task in data processing is the editing. (Errors and Omissions).
 Coding: Coding is the process of classifying the information into meaningful
categories. (Tabulating and Analyzing data.)
 Tabulation: Tabulation comprises sorting of the data into different categories and
counting the number of cases that belong to each category.
 Analysis: Under this step various techniques and methods are applied for finding out
the desired meaning from the data that has been collected from the survey.

Limitations of the study:-

 The information regarding the investors is being collected through market survey
where there are some discrepancies on the part of the clients who do not deliver the
right information.
 The questionnaire model sometimes does not suit all the clients.
 There are changes happening in the industry every time and due to this some of the
information collected becomes obsolete or irrelevant for the study.
 Some of the secondary data collected becomes outdated with the passage of time but
overall the information so collected is relevant for the study.
Senior Management Team
Rashesh Shah
Chairman & CEO

Deepak Mittal
CEO, Edelweiss Tokio Life Insurance
Company Limited

Naresh Kothari
President & Head, Equities Capital Market

Vikas Khemani
President & Head, Institutional Equities

Venkat Ramaswamy
Executive Director
Himanshu Kaji
President & Group COO

Rujan Panjwani
President & Head, Treasury

Ravi Bubna
President & Head, Wholesale Financing
Product and Services
Investment Banking

Overview

Our Investment Banking business is dedicated to providing corporations, entrepreneurs and


investors, the highest quality independent financial advice and transaction execution. Our
professionals offer a full range of services and transaction expertise, including private
placements of equity, capital raising services in public markets, mezzanine and convertible
debt, mergers and acquisition and restructuring
advisory services. We have a track record of successfully closing more than 100 transactions
to date.

Offerings

Private Equity Advisory - We have been a leading Private Equity advisor for over a decade
and have developed a strong expertise across industries which enable us to recognize
emerging industry themes and position transactions within the context.

Structured Finance Advisory - Over the years, we have built up significant expertise in
structuring appropriate financing solutions for client specific situations and identifying and
placing the transaction with institutional investors. Our portfolio of solutions comprises the
following Promoters Funding and Acquisition Financing.

Mergers and Acquisitions Advisory - Edelweiss’ M&A team provides insights into how
companies can grow and enhance their value. The M&A team are engaged in turnkey
transaction management and advise a diverse range of clients in medium to large transactions.
Our key strengths include independent advice, deep sector knowledge backed by
professionals with a range of training and experience that spans across multiple cross-border
deals and our relationships with large corporate.

Real Estate Advisory - Our advisory solutions are primarily focused on capital rising and
cover the optimal financing mix, project valuation, investment structuring and accomplishing
capital raising at either the enterprise level or the asset level. We manage Real Estate IPOs,
QIPs, advise enterprise level private equity financings, and enterprise level mezzanine
financing and structured debt. We have completed over $ 700 million in capital rising in the
last 18 months across multiple formats.

Equity Capital Markets - We are in the vanguard of equity capital markets having brought
to the market a large number of successful and path breaking transactions. We advise leading
Indian companies, banks, institutions and businesses which are seeking to mobilize capital
from investors in India and overseas. Within the practice, we provide opportunities for clients
to raise funds through the following – Initial Public Offering (IPOs) Follow-on Public
Offerings(POs) Qualified Institutional Placements(QIP) Rights Issues Preferential Allotments
Foreign Currency
Convertible Bonds(FCCBs) Global Depository Receipts(GDRs)
Infrastructure Advisory - A critical ingredient for sustainable development in India is the
pressing need for Infrastructure creation on a commercially viable basis. This signifies
immense opportunities and challenges for the sector. Recognizing this, Edelweiss’ new
Infrastructure practice has been formed to provide innovative solutions tailored to the unique
financing and advisory requirements of Indian infrastructure projects and developers. Our
team has a dedicated focus on the infrastructure sector, with considerable experience, a deep
understanding and a vast network of key relationships. We provide Infrastructure project
companies and developers the full range of capital and advisory services.

Debt Restructuring Advisory - At Edelweiss we have a very competent team offering


comprehensive debt restructuring solutions, both under the formal Corporate Debt
Restructuring (CDR) mechanism as well as negotiations with lender/consortium of lenders.
Our team of senior ex-bankers and restructuring specialists have unparalleled experience of
restructuring debts worth over Rs. 75,000 crores, and an ability to provide complete solutions
and support to the Corporate.

Institutional Equities
Edelweiss Capital’s Institutional Equities Business (IE) has become one of the top five
domestic brokerage houses and top three derivatives desks. It is the only brokerage on the
Street with a quant desk that provides a wide product range, servicing all investor categories.
The innovative mindset, unparalleled research, agile sales teams, and intensive execution
systems have enabled us to relentlessly
service our clients in different ways. It caters to a wide clientele comprising leading domestic
and international institutional investors, including Pension Funds, Hedge Funds, Mutual
Funds, insurance companies, and banks.

Asset Management

Overview
Edelweiss Asset Management offers a range of investment products and advisory services
across the risk return spectrum to individual and institutional investors. Our close focus on
client requirements is our inspiration in designing products which offer the best opportunity
for asset growth with a constant focus on risk and preservation of capital.

Offerings
Portfolio Management - Edelweiss offers the discerning investor an opportunity to access
its asset management expertise through its portfolio management service (PMS). The basic
objective of this product is to provide unbiased investment management strategy based on
rigorous fundamental analysis while taking cognizance of market conditions and movements.
Mutual Funds - Edelweiss Asset Management Limited follows a research based and process
oriented investment approach. Edelweiss Asset Management Limited is committed to observe
the highest ethical standards while deploying investors’ monies, servicing investors and
dealing with business partners.

Wealth Management

Overview
It is a specialized profession where our experts combine their efforts to meet the wealth
planning, investment, and financial management needs of individuals, families, family
offices, or corporate. Edelweiss Wealth Management takes one step closer to you, by
providing an "all-in-one approach”.
Advice on asset allocation and thereby creating customized financial solutions for HNWIs,
NRIs, Trusts and Corporate. We offer advisory services on Structured Products, Portfolio
Management, Mutual Funds, Insurance, Derivative Strategies, Direct Equity, IPOs, Real
Estate Funds and Art Funds.

Private Client Brokerage

Overview

The Private Client Services Group at Edelweiss is focused on providing products, strategies
and services to High Networth Individuals and Corporate Clients. We have geographic reach
through our Branches, Channel Partners & Investment Consultants in over 19 locations in
India.
The PCG team has highly trained equity professionals, who act as your Equity Advisor. Our
ESL Equity Advisor proactively helps you take informed investment decisions and build a
healthy portfolio. We draw on our strong presence and industry leadership to develop a
portfolio of offerings designed to serve the spectrum of financial needs. Our main objective is
to provide clients with all the tools and services they need to reduce the administrative
burdens of managing money and focus on what you do best - maximizing your trading
performance, building your business, and attracting new sources of capital.

Offerings

Cash Equity - Providing research based advice on select stocks from across sectors to meet
client’s investment requirement ranging from positional trading to long term investment
goals.
For our clients I provide ongoing portfolio consultation with a dedicated relationship manager
as one point contact for all day-to-day execution of trades and other service requirements
such as advisory on investments.

Derivatives - Edelweiss being a pioneer in Quantitative & Alternative Research, I leverage


this strength for our derivatives strategies focused towards short-term / medium investments
of clients in PCG. Derivative Strategy group, through its dedicated research team provides
seamless execution for its clients with trading view. The stock ideas generated are enhanced
by combination of technical view and derivative strategy along with the statistical data. Based
on the Quantitative Research products such as Pair Trades & Alpha Trades are also initiated
When ever I identify the opportunity.

Financing - I offer various products and services to individuals and corporates with a close
focus on client requirements while designing our products. Over a period of time I have been
offering short term loans against securities and/or to buy new securities. I also provide
finance for investment in primary market issues. I help promoters by financing against their
share holding to meet their business requirements, expansion of businesses and
diversification of the lines of business. I possess expertise in financing short and long term
loan facility, risk analysis, transfer
and assessment besides a broad spectrum of services.
Financing

Overview

Edelweiss Housing Finance Limited (EHFL) is a Housing Finance Company incorporated


under the aegis of the National Housing Bank (NHB). It is part of the Edelweiss Group of
Companies. EHFL has an array of loan solutions which can be tailored to your requirements.
If you’re looking for a Home Loan, do apply to EHFL for the highest loan amount in the
shortest time.

Offerings

 Home Loans
 Loan against property
 25 year loan - The Newly launched 25 year Home loans help you purchase a property
and repay in lower / easily manageable installments
 Refinancing - If you have already purchased a property and used your own funds or
borrowed from friends or relatives for the same, I could re-finance the same.
 Balance transfer & top up - If you already have a Home loan or a Loan against
Property running with any Bank or other financier, you could move the same to
EHFL a better rate of interest and a longer tenor, giving you the advantage of a lower
EMI.

Profile of The Company

Introduction:-
Edelweiss Capital Limited (www.edelcap.com), incorporated on 21st November 1995,
today has emerged as one of India’s leading diversified financial services group. The
Edelweiss Group offers one of the largest range of products and services spanning varied
asset classes and diversified consumer segments. The Group’s product offerings are broadly
divided into Investment Banking, Brokerage Services, Asset Management and Financing.
The company’s research driven approach and consistent ability to capitalize on emerging
market trends has enabled it to foster strong relationships across corporate, institutional and
HNI clients. Edelweiss Group now employs around 2575 employees after Anagram
acquisition, leveraging a strong partnership culture and unique model of employee
ownership. It now operates through 327 offices, 33 franchise led offices and over 1300+ sub
brokers in all major cities in India after the recent acquisition of Anagram Capital. The
Edelweiss Group is a conglomerate of 48 entities including 43 Subsidiaries and 4 Associate
companies (December ‟10), which are engaged in the business of providing diverse financial
services. It is a listed company since December 2007 under the symbols NSE: EDELWEISS,
BSE: 532922 and Bloomberg: EDEL.IN.

Evolution of Edelweiss:-

Business Overview:-

Edelweiss‟ operations are broadly divided into Agency and Capital business lines. The
Agency business line includes Investment Banking, Broking - Institutional, HNI and Retail,
Asset Management and Investment advisory and distribution services. The Capital business
line includes Financing and Treasury Operations. The strategies employed ensure that there is
a balanced mix of revenues among the three revenue streams viz., Agency fee & commission,
Treasury operations income and Interest income, thereby achieving the intended
diversification in revenue streams.

Investment Banking:-

Edelweiss has one of the most extensive product offerings in Investment Banking in
India, catering to different market and client segments. The verticals within Investment
Banking include Equity Capital Markets which include IPOs/FPOs, QIPs, Rights and Open
Offers, and Advisory services which offer Mergers & Acquisitions Advisory, Private Equity
Syndication, Structured Finance Advisory and Infrastructure Advisory. Edelweiss also offers
full bouquet of products in Debt Capital Markets including Debt Syndication and broking.

HNI Broking:-
Edelweiss offers dedicated broking services to high net-worth individuals with a strong
emphasis on building long-term relationships with clients. Product offerings include
specialized trading execution for active trading clients and structured products backed by
high quality execution and reporting.

Retail Broking & Distribution:-


Retail Broking and Distribution are the new initiatives of the Group under its Retail
Business strategy. The organic Retail broking business is through the online portal
www.edelweiss.in and provides advisory and research based broking services supported by
high quality execution platform and best in class reporting. It currently has over 90,000
clients under the online broking. Edelweiss has also completed the acquisition of Anagram
Capital Limited in July „10. This adds arounds 220,000 clients, over 1300 sub-brokers, 138
own offices and 33 franchise led offices to Edelweiss group.

Wealth Advisory & Investment Services:-


The Primary focus is on understanding each client's profile including life style, risk
appetite, growth expectations, current financial position and income requirements to create
comprehensive and tailored investment strategies. The broad range of offerings includes a
truly multi-asset class allocation advisory to Structured Products, Portfolio Management,
Mutual Funds, Insurance, Derivatives Strategies, Direct Equity, Private Equity, and Real
Estate Funds etc.

Asset Management:-
Alternative Asset Management currently focuses largely on offshore institutional
investors offering advisory/management expertise for India focused Multi-Strategy Fund,
Real Estate Fund and a Special Opportunities Fund.
Treasury:-
The Treasury operations in Edelweiss are similar to that of a Treasury in a
Commercial Bank and focus on liquidity management and capital preservation. This business
adopts a multi–strategy/multi-book approach to diversify and grow its portfolio while
imparting liquidity in the balance sheet.

Growth Initiatives:-
Edelweiss has entered into an agreement with Tokio Marine Holdings, Inc., one of
the world’s leading insurance groups headquartered in Japan, to establish a Life Insurance
Joint Venture in India subject to regulatory approvals. It has also completed the acquisition
of Anagram Capital and it has also launched home loans business recently. It also has
received the RBI approval for setting up an asset reconstruction company. These initiatives
would lead to long term investment opportunities for the Group in the financial services
industry while enlarging its retail footprint.

Corporate Structure:-

Edelweiss Capital Limited has 100% holding in its subsidiaries unless specifically mentioned
in parenthesis, as on 31st December.

Board of Directors:-
The Edelweiss Board comprises of three independent directors and one non-
independent non-executive director out of a total of six directors, each of whom brings in his
own expertise in diverse areas. The focus is on strong corporate governance. The directors of
the company are:
Financial Performance at a Glance:-
Edelweiss over the past years has delivered strong operating and financial
performance since its inception. It has consistently demonstrated a strong track record of high
growth and profitability. Its Revenues and PAT have grown at an 11-year CAGR of 80% and
75% respectively till FY10. As at the end of 31st December 2010 Edelweiss Group’s Net
worth excluding minority interest stood at over `23.05 billion (`27.90 billion including
minority interest), indicating a strong balance sheet. Equity capital is the primary source of
funding for the group besides debt. The leverage as on 31st December 2010 is 1.93 times
including the Minority Interest indicating a healthy position whereby the balance sheet can be
further levered easily.
Product of edelweiss :-

1.Edelstar:- it is the most popular product of edelweiss. Its comes in every Friday of week.

 Every Friday one company is suggested by edelweiss to


buy.
 3 month is a time limit of every edelstar.
 Edel star is suggested on basis of fundamental as wel as
technical analysis..

Edelstar provides information like:-

 Balance sheet of 10 years


 Balance sheet of 5 competitor of 5 year
 Information about their product and services
 Internal and external news .like swot analysis, media
news etc
 Merger and acquisition.
 Research and strategy like current share price, target
price ,stop loss.

Edelstar has edelscore which is base on past performance.

 Score- 1to 5- Average performance


 6 t0 7-good performance
 7 to 10-excellent performance.

On an average one edelstar provide minimum 5 to 6% return.

Why edel star launch on Friday?


Edel star launch on Friday because Saturday and Sunday market are close so investor will get
more time to study market .

Technical weekly pics:- it is the popular product of edelweiss. Three company is suggested
by edelweiss to buy.
 3 month is a time limit of every Twp
 Twp is suggested on basis of fundamental as wel as
technical analysis..

Twp provides information like:-

 Balance sheet of 10 years


 Balance sheet of 5 competitor of 5 year
 Information about their product and services
 Internal and external news .like swot analysis, media
news etc
 Merger and acquisition.
 Research and strategy like current share price, target
price ,stop loss.

Twp has edelscore which is based on past performance.

 Score- 1to 5- Average performance


 6 t0 7-good performance
 7 to 10-excellent performance.

On an average one Twp provide approx 8%.

Edel tracker :- edel tracker for those individual who are interested to trade in delivery (long
term)mode.

 More than three company is suggested by edelweiss to


buy.
 1 t0 6 month is a time limit of every edel tracker.
 Edel tracker is suggested on basis of fundamental as
well as technical analysis..

Twp provides information like:-

Fundamental and technical analysis

 Balance sheet of 10 years


 Balance sheet of 5 competitor of 5 year
 Information about their product and services
 Internal and external news .like swot analysis, media
news etc
 Merger and acquisition.
 Research and strategy like current share price, target
price, stop loss.

Edel tracker has edelscore which is based on past performance.

 Score- 1to 5- Average performance


 6 t0 7-good performance
 7 to 10-excellent performance.

On an average edel tracker share are those share which give less return in comparison to edel
star and Twp. It gives maximum 6% of return.

Quant basket:- quant basket is a product which provide group of company.

There are minimum 6 baskets in quant basket.


In quant basket profit is evaluate in monthly basis.

Two types of provide information:-

Quant basket is suggested on basis of fundamental as well as technical analysis..

Twp provides information like:-

 Balance sheet of 10 years


 Balance sheet of 5 competitor of 5 year
 Information about their product and services
 Internal and external news .like swot analysis, media
news etc
 Merger and acquisition.
 Research and strategy like current share price, target
price ,stop loss.

Twp has edelscore which is based on past performance.

 Score- 1to 5- Average performance


 6 t0 7-good performance
 7 to 10-excellent performance.

On an average every company provide minimum 4% of return and total return become 24%.
Analysis of equity market

Equity market is a public entity for the trading of company stock (shares) and derivatives at
an agreed price; these are securities listed on a stock exchange as well as those only traded
privately.

The total world derivatives market has been estimated at about $791 trillion face or nominal
value when the objective of the analysis is to determine what stock to buy and at what price,
there are two basic methodologies

1. Fundamental analysis maintains that markets may misprice a security in the short run
but that the "correct" price will eventually be reached. Profits can be made by trading
the mispriced security and then waiting for the market to recognize its "mistake" and
reprise the security.
2. Technical analysis maintains that all information is reflected already in the stock
price. Trends 'are your friend' and sentiment changes predate and predict trend
changes. Investors' emotional responses to price movements lead to recognizable
price chart patterns. Technical analysis does not care what the 'value' of a stock is.
Their price predictions are only extrapolations from historical price patterns.

Fundamental analysis involves financial statements and health, its management and
competitive advantages, and its competitors and markets. It focuses on the overall state of the
economy, interest rates, production, earnings, and management.

Fundamental analysis is performed on historical and present data, but with the goal of making
financial forecasts. There are several possible objectives:

 To conduct a company stock valuation and predict its probable price evolution,
 To make a projection on its business performance,
 To evaluate its management and make internal business decisions,
 To calculate its credit risk.

Technical analysis term used to denote a security analysis discipline for forecasting the
direction of prices through the study of past market data, primarily price and volume

Behavioral economics and quantitative analysis incorporate technical analysis.


Analysis and Interpretation of Data
Data analysis is the next step after the field survey is over. This portion of the
research requires a lot of attention and patience, as the project may be distracted from its
objectives very easily if the analysis has not been performed with due care and diligence. In
this process all the information received is transformed in to some meaningful form of
presentation such as tables or charts.

As I took sample size of 100 people. According to their gender, age, salary,
professionalism, interest of invest, which firm they would like to invest and further questions
asked according to need of research study.

As Sample size 100 out of which 90 are male and 10 are female:-

Male Female

90 10

10
%

male
female

90 %

Following graph shows the age of respondents and the target respondents were only
those individuals whose age is above 25 years:-

>25 yr 25-30 yr 30-40 yr 40-50 yr <50 yr


10% 20% 25% 30% 15%
> 25 years
< 50 years
10%
15%
25-30 years
20%

40-50 years
30%
30-40 years
25%

Following graph shows the occupation of the Respondents:-

Self Employed Businessman Salaried Professionals

9% 20% 54% 17%

OCCUPATION
Self Employed
Businessman
9%
20%
Professionals
17%

Salaried
54%

Graph

below shows the annual income of the respondents. Only those respondents are
considered whose annual income is above 3 lakh rupees per annum. Even the target
customers for the company were only those individuals whose annual income is above
Rs. 300000
>300000Rs. 3-6 lac 6-10lac <10 lac

7% 56% 35% 3%

ANNUAL INCOME
< 1000000
Rs. 600000- Rs. > 300000 Rs.
100000 0 3% 7%
35%

Rs. 300000-
600000
56%

Graph below shows the preferred sectors for investment in equities. The most preferred
sector is financial sector as it is expected that this sector will grow very fast. The second
most preferred sector is Oil & Gas sector because in this sector the major players are
the Government owned industries and as the economy will develop the consumption of
oil and gas will increase. The third most preferred sectors are FMCG and TELECOM
sectors. FMCG sector stocks are the defensive stocks and TELECOM sector is one of
the fast growing sectors.

IT Telecom FMCG Pharma Oil & Real Power Financial


Gas Estate

8% 13% 12% 10% 12% 10% 10% 25%


Preferred Sector to invest in Equities
DIVERSIFIED
0%

TELECOM FMCG
IT 13% 12% PHARMA
8% 10%

FINANCIAL
25% REAL ESTATE
10% OIL & GAS
12%

POWER
10%

Following graph shows the different preferred tools of investment by the individuals.
The most preferred tool is the Mutual Funds. After the financial crisis and the collapse
of stock market many investors had lost their money and their confidence is shacked.
Moreover mutual funds are more safer investment instruments in comparison to others
and also the rate of return on them is high and even the risk is lower than equities and
they are preferred because investing in them exempted from taxation. Mutual funds are
followed by the bonds which are risk free and also the rate of return is good.

Derivatives Mutual Funds Bonds Insurance Equity


10% 3% 20% 15% 18%
PREFERRED TOOL OF INVESTMENT IN
CAPITAL MARKET
Derivatives
10%
Equity Mutual Funds
18% 37%

Bonds
20%

Insurance
15%

Share Khan is the most preferred broking house followed by the India Bulls and then
MotilalOswal broking house. Edelweiss is least preferred because it has just entered
into retail segment in March 2008, and it will take some time for it make its presence
felt in the retail segment. Earlier it was catering only to the HIGH NET WORTH
INDIVIUALS (HNIs).

Edelweiss
Religare 4%
6% Sare Khan
Kotak Mahindra 22%
6%

India Infoline
10%

MotilalOswal
ICICIDirect.com 18%
14%

Indial Bulls
20%
The following chart shows the reason for the collapse of Sensex. Most of the respondents
believed that subprime crisis was the main reason for the downfall of Sensex as it forced
the FIIs to withdraw their money from Indian markets back to their parent countries.
The second most believed reason is the bankruptcy of the financial institutions.

Negative
Market
REASON FOR THE DOWNFALL OF SENSEX FROM
Sentiments 21k TO 8k Adverse Capital
9%
Shock
4%
Credit Crunch Constant
7% Depreciation of
Home Currency
14%

Bankruptcy of Big
Financial Institutions
Sub Prime Crisis
22%
44%

EXPECTATAION OF MARKET RECOVERY


Above 24 months
5%
Within 1 month
0% 1-6 months
21%
12-24 months
29%

6-12 months
45%

Questionnaire through which I came to know Psychology of people towards Share


Trading.
Q. Through which of the channels do you usually buy a financial product?
Internet Broker Direct from Company

5% 75% 20%

Internet Broker Direct From Company

5%

20%

75%

When it comes to channels of buying a financial product most of the people prefer to buy
it from a broker as it is the most trusted source and they have a good market and product
knowledge. Many people like to inquire themselves directly from the company while 5% of
the people look for internet as a medium. This graph shows that broking business is a
profitable one as it attracts the large volume of potential customers.

Q. How Do You Come Know About Edelweiss?

Internet Print & electronic Reference Group By Chance


13% 21% 27% 39%
45

40

35

30

25

20

15

10

0
Internet Print & Electronic Reference Group By Chance

The above responses shows that most of the people came to know about Edelweiss by
chance while many through reference group. This shows that the company needs to
work a lot towards creating Brand Awareness. Reference group is a good source of
information about the company.

Q. Are you aware of broking facilities given by Edelweiss Financial Services Ltd.?
Yes No

40 60

60
50
40
30
20
10
0
Yes
No

60 % of people are not aware of the share market facilities given by the Edelweiss
Company and 40% of people are aware of it.
Q. Are you using Demat Account from Edelweiss?
Yes No

75% 25%

80%
70%
60%
50%
40%
30%
20%
10%
0%

Yes
NO

People who knows Demat Account facilities of Edelweiss, out of which 75% people are
using these facility and 25% are not and moving towards other companies.
Q. Best company in Broking according to you?
ICICI Share Motilal India India Religare Edelweiss
Direct Khan Info line Bulls

30 15 15 12 11 9 8

30%
25%
20%
15%
10%
5%
0%
According to survey carried by me through questionnaire ICICI direct is more preferable for
most of the people. When it comes to the option they slightly move towards companies
which are well known to them.
Q. Factors affecting the choice of company?

30%
25%
20%
15%
10%
5%
0%

Through this question we can say that Brand image of any company that does matters for
customer. After that customer will go with low broking charges by any company. And
third and most important factor is Research & Development department of company.
Analysis of questionnaire with existing clients:-
Same questions were asked to the existing clients of the company. And following is their
analysis.
Association with the company

6 Months 1 Year 2Year More than 2yr

8%
11%
43%

38%

Most of the customers are new to the company. It can be conclude that company has done
good job in case of sales.
Satisfaction Level of Customer
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Extreamly Satisfied Neutral Not satisfied
satisfied

49% of the customers are satisfied and 8% dissatisfied. The company needs to work on
these customers and minimize their dissatisfaction.

Expectation of Customer

Reduction of brokrage charge Improve Serviece Quality


Customer Frendly Norms Other Tips

13%
34%
22%

31%

Most of the customers want the brokerage to be reduced and services to be


improved.
SWOT Analysis of Edelweiss Financial
Services Ltd..

Strengths:-
 Large Workforce
 Diversity in Experience
 Young and Energetic
 Ownership of New Technology

Weakness:-
 Limited Facilities
 Poor coordination
 Low Productivity
 Lack of Competency and Skill
 Unrealistic Contract Duration
 Labor Problem

Opportunities:-
 Utilization of Latest Construction Technology Method
 Association with Large Projects Like Real Estate
 Geographical Focus

Threats:-
 Defects in Design
 Changes in Specification
 Slow Verification
 Late Issue of Instruction
 Delay of Work Approval
 Proceeding Pending
 Any Failure will affect company
 Loss of Key people

Pros:-

 1. Sure money returns


People can benefit from better returns from an active stock trading that just buying
and holding the investment.

 2. Popularity
Before choosing one or another trading stock, you must be popular with it. Try to find
as much information as you can in order to understand each of them. Then, choose.

 3. A variety of choices
There is a variety of stocks people may choose between but the most important is how
to make the best choice. Try to find stocks that have moving prices.

Cons:-

 1. Leverage
Leverage means a flaw of stock trading. The flaw for this trading is lower than
compared with future trading or with Forex.
 2. The costs
While the price cannot be compared to other types of trading, the stock trading
virtually becomes impossible for those people who don’t get some money before they
can start investing.

 3. Rule on short selling


The traders have to wait for a quite long time before the stock price ticks up and
they’ll get a chance to short selling it. This way, the profits of a trader will be limited.
The Forex trading does not have such a policy.

 But, remember that all of the trading systems like Forex, Stock or Future also have
their advantages and disadvantages.

Conclusion: So if you are a wise trader, then it’s just up to you to think about these
aspects. It would be better if you can estimate it properly before choosing any of those
systems.

Online trading benefits:-


1) fees and commissions are much lower in comparison with traditional ways of trading;
2) an opportunity to act on price movement immediately;
3) direct access to information on real time prices and charts;
4) absence of broker gives any trader an opportunity to take his/her own decisions without
hurry;
5) completing or denying a trade can be performed within a few seconds so it's easier to
manage your investments and shorten your losses.
Summary of Findings Edelweiss Financial
Services

Summary of Findings:-

 The Management Efficiency ratios indicate that since Edelweiss moved into retail in
2007, it has been doing well in terms of profit but after 2008 due to recession profit of
Edelweiss has reduced but still the company is in a better position than some of its
competitors.
 Edelweiss hasn’t been financially stable according to the financial stability ratios. The
assets of Edelweiss increased in the year 2008 and then immediately decreased to a
great extent in 2009.The funds borrowed have reduced in 2009 in comparison to 2008
which shows a slight improvement for Edelweiss.
 According to the profitability ratios, Edelweiss displays a trend of reducing net profit
through the three years. This is due to increase in the shareholders funds and also due
to recession which affected the net profit of Edelweiss in 2009.
 Taking into account all three years, Edelweiss has been efficient with respect to
certain ratios but hasn’t been up to the standards. Till 2008, it has been able to collect
it debts efficiently but then due to recession this ability suppressed. Also the market
price per share of Edelweiss had a reducing trend which lowered the earnings per
share and the price earning ratio. But at the same time Edelweiss increased the
dividend and reduced the debts making it efficient in certain areas.
 Even though companies net profit has been decreased than also there is a increase in
Dividend Per Share over a period of time, which means company is attracting its
shareholders.
 The debt equity ratio doesn’t show much variation. This indicates that every year the
increase of decrease in the debt and equity has more or less been proportionate.
 Current ratio is on a brighter side though it has declined as compared to ’08 in ’09.
This brings the company in a better position as far as the creditors are concerned.
 Debtor’s ratio had increased in ’08 but came down in ’09, this is result of the declined
sales of the company.
 A decline in interest coverage ratio is an indicator of the facts that the profit before
interest and tax of the company has reduced. Though it has improved in ‘09 as
compared to ’08, the improvement is not substantial.
 An obvious impact of decline in sales is on the profits ratios of the company. Inspite
of a 17.18% decline in sales in ’09 as compared to ’08, the company has been able to
maintain a positive and a reasonably good profit position.
 Return on capital employed by the company is showing reducing trend. The capital
base of the company has increased in ’08 and has remained constant in ’09. However,
the ROE ratio has been reduced by 50%. This is not good news for the owner’s of the
company, as profitability of their investment in the company has been reduced
dramatically. Similar analysis can be made for net worth ratio as it has also declined
drastically.
 Despite of not so favorable result in ’09 as compared to ’07 and ’08, the company has
declared a good divided for the shareholders. This shows that the company is more
interested in pleasing the shareholders than accumulating funds for the future plans of
the company. This policy is further indicated by an improved dividend payout ratio of
the company.
 A decline in the earning per share is as a result of decline in the profits of the
company. Thus amount of profit available per share has gone down.
 Increase in the debt collection ratio is not a good sign, as it means that the company’s
collection department is taking more time to recover funds from the debtors. This is
even worse as the company’s sales have reduces. Thus the company has not been able
to manage the debtors properly, despite of reduction decline in sales.
 Proprietary ratio is showing an improvement. This indicates that the company has
enough assets to cover the proprietary funds (owners’ fund).
 Capital gearing ratio indicates the risk taking capacity of the company. Higher ratio is
risky, but profitable for the equity shareholders. On the other hand lower ratio is safe,
but not preferred by the equity shareholders. In the present case a decline in this ratio
indicates that the risk to the company has reduced, but this might not go well with the
shareholders

 Edelweiss has been doing well for quite some time now but lately due to recession its
net profit has been affected, so certain measures much be taken by Edelweiss to cut
down on its expenses.
 Edelweiss has been repaying the debts borrowed efficiently, therefore it must continue
to do so even in tougher times when the funds borrowed are of higher amount.
 Through retail Edelweiss is doing average profit, hence Edelweiss can think about
going in for new ventures. They can introduce mutual funds and allow it be handled
online like their other features on the online trading portal.
 Attracting customers is more of a concern for Edelweiss because of lot of
competition, so they need to come up with various schemes and plans which will pool
in more customers. These plans must be beneficial for the customers which will make
them give more references, thus increasing customers for Edelweiss which in turn
gives the company more revenue.
 The company’s customer service is very poor, as their main focus is attraction of
customers. The company prefers only target rather than welfare for employees.
 The company’s stock price once reached to a peak height of Rs.1,500 per share but at
present it down to Rs.520 per share it shows the company has doing well in past but
because of recession the FII’s (Foreign Institutional Investors) pull out lot of money,
still it was able to sustain its market image.
 There are many facilities provided by Edelweiss to improve its market value and it is
more helpful for customer in satisfaction point of view.
 As Edelweiss team is doing well to get the business and why this happening because
their more intention towards satisfaction of customer. Customer is a person where
ever he gets satisfaction he will go towards it and that what Edelweiss is doing.
 If Edelweiss is continue with this performance, It will not take much time to be a
famous broking firm.

Comparison table of brokerage plans


Company Name Delivery Charges in % Intraday Charges in %

India Infoline 0.10- 0.05


ICICI Direct 0.25 – 0.75, 0.125 – 0.375
Angel Broking 0.10 – 0.60 0.05 – 0.30
Indiabulls 0.20 – 0.50 0.10 – 0.30
SMC 0.15 – 0.60 0.125 – 0.35
Religare 0.15 – 0.50 0.05 – 0.20
Sharekhan 0.05 – 0.50 0.05 – 0.25
Kotak Securities 0.10 – 0.50 0.05 – 0.30
5 paisa.com 0.10 – 0.55 0.05 – 0.20
HDFC Secutities 0.25 – 0.75 0.20 – 0.40
Motilal Oswal 0.25 – 0.45 0.05 – 0.30
Edelweiss 0.5 - 0.55 0.05 – 0.30

Advantages of Edelweiss over its competitors

 Actionable research and strategies relevant to your current stock holdings and
investment goals.
 An easier way to trade with simplified trading pages, brokerage plans based on your
trading patterns, live terminal experience and single click execution. The web pages
are very easy to navigate and to do transactions.
 Intelligent portfolio tracking by creating multiple sub portfolios according to
financial goals, track investment across assets and personalized advice based on your
financial goals.
 24 x 7 access through mobile services and desktop tools stay updated on stocks
portfolios strategies.
 Secured site to make investments, robust systems to handle traffic.
 Xtreme trader the next generation online trading platform with Dow Jones
newswires.
My scope of work during SIP
My scope of work during internship was to generate business for the company by way of
opening demats account. I was given intensive training during the starting of our internship
about the product and the details about it like the different brokerage plans, various value
added services provided by the company, extensive research done by the company to provide
the customers with accurate information and provide the customers with opportunities to earn
handsome returns on their investments.

During my internship I was given the task of calling customers and trying to convince, them
to open demat account and investing in the stock market. I also have the task of convince the
customers that investing in the stock market is a better option than investing money in FD,
Post office schemes etc. The average return from the stock market during the past five years
is about 15% p.a. Once I had convinced
the client over the phone then the next task was to ask for a meeting where I would clear any
remaining doubts that the client may have and do the necessary paper work that is required to
open an demat account.

Apart from tele calling other ways of generating leads for the company was by way of talking
to people in the market and getting them to invest in the stock market. Taking to them about
ways by which they could start investment in the stock market.
Another way of generating leads way by visiting corporate houses and making presentation to
group of people about how to go about investing in the stock market. How they can minimize
their risk and maximize their returns.
Another activity that I did was to set up canopy in strategic places like CP, Karol Bagh,
Jhandelewan where there is lots of activity and often visited by people of different
background. Where I could get to speak with people from different profession and get to
know there perspective about stock markets.
Our task was to interact with people and provide them with basic knowledge about
investment opportunities in the stock market. Our primary goal was to generate leads for the
company and getting people to invest in the stock markets and clear there misconception that
investment in the stock markets is risky and they would suffer losses.
Challenges faced during my SIP
The challenges that I faced during our SIP was from two different sets of people, first sets of
people where those who have very little or no knowledge of the stock markets and how it
works, the second set of people where those who are already active in the stock markets and
are not ready to switch to a different company. I had to tackle these two different sets of
people very differently; our approach would have to very different in these two cases.

The main challenge that I faced was to convince new people to invest and get involved in the
stock market. In India only a very small percentage of the population invest in the stock
markets. There is very little awareness about investment opportunities that exists. I had to
start from the scratch in order for them to understand how the stock markets works and that
there investment are absolutely safe and secure. People also have the preconceived opinion
that investment in the stock markets is a risky business, they are happy to invest in various
other sources like banks, property, jewellary etc. They are of the opinion that once you have
invested your money in the stock markets it will never come back.

Also they are not ready to trust a private company that would manage their investments. They
prefer to invest in public sector banks and other govt. companies. They are not at all
comfortable with the idea of investment in the stock markets even if it could earn them better
returns. They are comfortable with whatever they are earnings are not ready to explore new
areas. To get people who are already active in the stock markets to switch to a new company
was equally challenging if not more. Here the problem was to convince people to try out our
company and how I would offer products and services to them than they are already getting
form their existing broking company. It would take a lot of persuasion and convincing, many
round of meeting where I would present our products and let them compare with their
existing products. Also there would be lots of negotiation about the different brokerage plans
and brokerage rates. I would have to offer the clients very low brokerage rates and multiple
benefits to get them to switch. They would demand very low brokerage rates and various
other facilities some of those would not be possible for us to give.

My seniors provided me with guidance and motivation that helped me in my interaction with
the clients and clearing their doubts. They explained to me in detail the various benefits of the
product and how the customer would benefit from it.
Recommendations and Suggestions
The two months that I spend in the company and having closely observed the working I
would suggest the following points that I feel would benefit the company and help them
attract more clients towards it.
Following are the recommendations:-
 The company only concentrates on getting advance brokerage the different brokerage
plan that they have are only about advance brokerage. If somebody is not ready to
give advance brokerage than there is nothing that the company could offer them.
There is no alternate plan with them so they lose out on customers. Also each plan
comes with a predefined turnover volume, which I feel should not be there and the
client should be free to trade as much as he/she wants without any precondition.
 The margin account that the company has were the client do not have to pay advance\
brokerage, the brokerage will be charged when the client does an transaction, the
brokerage that the company charges is very high compared to other companies. The
brokerage part should be looked at by the company.
 The brokerage plans that the company has been designed according to the needs of
the people who are already investing in the stock markets. There is nothing for the
people who are new to the market and want to start with small amount of money
initially. The brokerage plans are designed keeping in mind the HNI clients.
 The company is also very rigid in its approach; they are not ready to give discounts
beyond a certain point even if it means losing a client. The company should be
flexible in its approach and brokerage plans in order to get new clients.
 I believe that the Xtreme trader platform that is provided to only those people who
have taken the advance brokerage plans should be made available to those clients
also who have taken the margin account plan. It should be standardized across all
plans.
 The company should try to concentrate on tier B and C town which are rapidly
growing and are the new emerging markets. There is lots of potential in these
markets. The company should tray and expands in these markets by of branch offices
or franchisees.The brand awareness of the company among people is very low as
compared to its competitors the company has to take steps to create awareness among
the people. This can be done by spending more on advertisements, sponsorship,
promotions etc.
My Learning from SIP
I learned a great deal about the stock market and its functioning during my two months of
internship. Earlier I had very little knowledge about the stock market and how it works. I had
no knowledge about how to invest in the stock market. I was only aware about the existence
of the Bombay Stock Exchange, I was not even aware of the National Stock Exchange i.e
Nifty.

During my internship I learned a great deal about the stock market and how to invest in it. I
also gained knowledge about two basic types of trading in stocks i.e delivery and intraday. In
delivery you have to hold the stock for more than one day and in intraday you have buy and
sell the stocks on the same day. I also gained fair knowledge of how brokerage is calculated
and the different brokerage plans that the
company has to cater to the needs of clients. The clients can choose the plans according to his
investment pattern and volume. I also gained fair knowledge of various other forms of trading
like Future and Options (F&O), derivatives, Debt market, Currency, Commodities etc.
I also learned about how lot size for F&O is calculated and what types of taxes are levied on
it. My major learning was constant interaction with different people and trying to sell demat
account to them. I had to put my best foot forward in order to convince people to invest in the
market. There was also constant pressure from my team leader to generate business for the
company. I was given stiff targets by our team leader which I had to achieve. I was made to
work under constant pressure which I believe will help me in the future. I got to know
firsthand what pressure is all about and how to work under constant pressure, how to answer
all the queries raised by the client.

During my internship period I also had the opportunity to test my selling skills and my ability
to convince people. During my internship I got experience about how to talk people and
convert them into clients for the company. I got to test my skills to be patient and my ability
to listen what the client want and how I would be able to convert the prospect into client. I
got to understand as to how portfolio (basket of shares from different sectors of the industry)
is created keeping in mind the clients
preferences and his appetite to take risk.

I also got fair knowledge about how the company is gearing up to face stiff competition from
other similar companies and its vision for the future.

Conclusion
The two months that I have spent in my internship period would be a golden period of my life
in which I learned a great deal about the stock market and its functioning. Earlier I had very
little knowledge about the stock market but now I can say that I have fair knowledge about
the company and the stock market.
I got fair knowledge about how to work in a corporate environment and how to absorb
pressure.
I learned things that are not found in books and those can only be learned when you are out in
the field, talking to people. I believe this will help me in the future. The best part was the
training sessions that were taken by senior persons in the company to let us know about the
various products of the company and how to approach the customers with these products.
Overall I would say that the two months of my internship was full of learning and wonderful
experience will I will always keep in mind through my life.

 Edelweiss Capital Ltd. as a company has been successful since it moved into retail in
2007 but post recession in 2008 the company suffered a setback as a result of
reduction in profit. On a positive note the company always focuses on long term goals
and more focus on customer satisfaction that helped Edelweiss to grow in market.
 In the last three years the earnings per share of Edelweiss Capital Ltd has shown very
good growth due to aggressive and passionate sales trading team, they are able to
seamlessly execute complex trades, across the entire spectrum off trading strategies.
Their more concentration towards customer satisfaction and they are doing it
brilliantly.
 Edelweiss Capital Ltd. has been performing well when compared with some of its
competitors. Some of the products and services offered by Edelweiss are quite unique
which gives them an upper edge over other competitors. And this is the reasoned why
they are successful in broking market. They came to know what customer wants and
how can they satisfied them
 There are many pros and cons and customer now understand importance of share
trading through which they can earn money by doing easy task whether it is online or
off line.

References and bibliography


Resources and facilities which I would like to use these are listed below:

 Concerned faculty’s guidance


 Internet like www.edelweiss.in, Wikipedia
 Magazine
 Newspaper like Economic Times
 My knowledge about stock market and experience with customer in Edelweiss
Financial Services Ltd.

 All the data which I have collected from company and customer perception, thinking
towards share trading.

Annexure
QUESTIONNAIRE

Dear
Customer,

As a Management Trainee currently working with Edelweiss Financial Services Ltd. I


want to thank you for giving us the opportunity to serve you. Please help us serve you
better by taking a couple of minutes to tell us about the service that you have
received so far. We appreciate your business and want to make sure we meet your
expectations.
…………………………………………………………………………………………….
1. Annual Income?
a) > 3 lakh b) 3 lakh- 5lakh
c) 5 lakh- 7 lakh d) 7 lakh and above

2. What are the possible sources that you search for financial product information
before making any decision?
a) Television/Radio b) Internet/Website
b) Newspaper/Magazine d) friends
e) Word of Mouth f) others, please specify

3. Through which one of the channels do you usually buy a financial product?

a) Internet b)Broker

c) Direct from the company d) others

4. What is your preferable tool of investment?


a) Bank deposits b) RealEstate

c) Derivative instruments d) Mutual funds

e) Gold and bullion f) Equity shares

5. How did you come to know about Edelweiss?


a) Internet b) Print and electronic media

c) Reference group d) By chance

6. Are you aware of Broking Facility offered by Edelweiss?


a) Yes b) No
7. Have you used any Edelweiss Financial products?

a) Yes b) no

8. Which Edelweiss Products are you using now?

a) Mutual Fund b) demat

c) Debentures d) others

9. How long have you been associated with Edelweiss?

a) Less than 1 month b) 1month-3month

c) 6-12 months d) more than 1 year

10. Evaluate the performance of following firms by ranking them on a scale in


ascending order?
ICICI direct.com
Share khan
Motilal oswal
HDFC securities
Edelweiss
India Infoline
Religare
India bulls
5paise.com

11. Please indicate the level of importance regarding your decision factor
in buying a financial product in the following scales: 1-not important 5
extremely important?
1 2 3 4 5
Reputation of the company
Innovative products
Service of the firm
Proximity of firm with residence/office
Dealer support and guidance
Advanced research & development department

12. Please Rate overall performance of Edelweiss?

a) Extremely satisfied b) Satisfied

c) Neutral d) less satisfied

e) Dissatisfied

13. Will you recommend Edelweiss broking to your friends/family?

a) Yes b) no

14. What is your opinion about selling strategy of Edelweiss?

a) Excellent b) Above average

c) Average d) below average

Personal Information

(i) Name: ………………………………………………………………………

(ii) Age: less than 25 25-30 30-40 40-50 more than 50


(iii) Gender: male female

(iv) Marital status: Married single

(v) Educational Qualif: 10th pass 12th pass graduate post graduate

(vi) Occupation: service business profession other, please specify

Phone no: Email

id: Signature:

FOR DORMANT CLIENTS

QUESTIONNAIRE

1. Why you are not associated with Edelweiss?

a) Liquidity crisis b) lost faith in capital market


c) Alternate brokerage firm d) temporary breaks

2. If you are associated with other firm, what are the features that attract you?

a) Low brokerage b) Good system support

c) Proximity to residence d) Research input

e) Trained people in the desk

3. What according to you is the weakness of Edelweiss?

a) Low brand awareness b) brokerage

c) Services d) others, please specify

4. You prefer to return back with Edelweiss in

a) 6 months b) 1 year

c) 2 years and more d) never

5. Which sector’s performance is best?

a) Equity b) mutual fund

c) Insurance d) portfolio

6. Do you support the transition of Edelweiss from niche to mass market?

a) Yes b) No

7. In which product did you faced the problem?

a) Equity and Derivatives b)Commodity

c) Portfolio d) E-broking

e) Any others, please specify……………………………………………………...........

8. Any suggestion that you would like to put forward by which Edelweiss can improve
on its services

…………………………………………………………………………………………………
…………………………………
……………………………………………………………….

9. Personal Information

(i)Name:

(ii) Age: less than 25 25-30 30-40 40-50 more than50

(iii) Gender: male female

(iv) Marital status: Married single

(v) Educational Qualification 10th pass 12th pass graduate post graduate

(v) Occupation: service business profession other, please specify

(vi)Contact Details:

Phone no: Email

id: Signature:

EXISTING CLIENTS

QUESTIONNAIRE

1. Since how long you have been associated with Edelweiss?

a) 6 months b) 1 year

c) 2 years d) more than 2 years

2. What are the products that you have opted from Edelweiss?
a) Equity b) Dematerialization

c) Insurance c) Portfolio management

e) Any other. (Please specify)………………………………………………….

3. As a customer, mention your level of satisfaction derived from Edelweiss.

a) Excellent b) Very good

c) Good d) below average

e) Poor

4. In current global turmoil scenario, what are your expectations from Edelweiss?

a) Reduction in brokerage b) Providing more tips

c) Improvement in service quality d) providing more lenient and flexible

e)Customer friendly norms

5. You would recommend Edelweiss to your

a) Family b) friends

c) Anyone without hesitancy d) no one

6. Your recommendation to make Edelweiss better?

……………………………………………………………………………………………….

7. Personal Information

(i)Name: ……………………………………………………………………………..

(ii) Age: less than 25 25-30 30-40 40-50 more than50

(iii) Gender: male female

(iv) The marital status: Married single


th
(v) Educational Qua. 10 12th graduate post
graduate
(vi) Occupation: service business profession other, please specify

(vii) Contact Details:

Phone no: Email id:

Signature: