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Project Report On Demat Opening Schemes of Reliance Money with other competitors, Mutual Fund, Financial and Technical

analysis.

Submitted in requirement of partial fulfillment of MASTER OF BUSSINESS ADMINISTRATION 2007-09 Under The Guidance Of :
Mr. MANISH SHUKLA
Center Manager, Reliance Money, MEERUT Submitted to:
Ms. Jasika Shukla
Faculty, Finance

Submitted By:

Pramod Kumar
MBA

PUNJAB TECHNICAL UNIVERSITY, JALANDHAR

ACKNOWLEDGMENTS
It was a great opportunity for me to work with Reliance money, pioneers in the field of online trading. I am extremely grateful to those who have shared their expertise and knowledge with me and without whom the completion of this project would have been virtually impossible. Firstly, I would like to thank my project guide Mr. Manish Shukla Center Manager, Reliance Money Ltd., who has been a constant source of inspiration for me during the completion of this project. He gave me invaluable inputs during my endeavor to complete this project. I am indebted to all staff members of Reliance Money Ltd. for their valuable support and co-operation during the entire tenure of this project. Not to forget, all those who have kept our spirits surging and helped me in delivering my best.

(Pramod Kumar)

Analysis of Questionnaire 17. 8. 2. Annexure .INDEX 1. 6. Limitations 21. 4. Indian Stock Market Overview 11. Indian Scenario 14. 7. Introduction Executive Summary Project Objective Methodology Company Profile Corporate Structure Reliance money Services Services Provided Mutual Fund 10. Learnings 20. About BSE 13. Findings 18. Conclusion 22. 3. Products and Required Documents 15. Competitive Analysis 16. About NSE 12. 9. 5. Bibliography 23. Suggestions 19.

They have over 300 share shops across 175 cities in India. thefts and paperwork. their over 750 Client Relationship Managers are dedicated to serving customers unique needs. monthly magazine etc through Internet. This powerful technology complemented by their knowledgeable and customer focused Relationship Managers is creating a world of Smart Investor. So. convenient and efficient. right at your finger-tips. Reliance Money offers a full range of financial services and products . Their flagship Reliance Money offers real-time prices. Investors buy or sell their securities in a few seconds by clicking a mouse. Online Share Trading is beneficiary for customer as well as company because in online customers have not take much pain for investing money in a market. About Reliance Money: Reliance Money is India's leading retail financial services company. These reports help investors for investment in securities. So Online share Trading is much better than offline share trading. Today companies provided all information on a company website or make their own software. While their size and strong balance sheet allow them to provide customers with varied products and services at very attractive prices. In Online Share Trading investors invest their money in stock market through the internet. Companies provided research reports. Investors get this information online.INTRODUCTION In today’s scenario Online Share Trading in Stock market is gaining popularity. All process is done automatically in a few seconds. detailed data and news. intelligent analytics. Online Share Trading is safer and faster alternative to the offline Share Trading as it offer freedom from delays. Reliance Money is lead by a highly regarded management team that has invested crores of rupees into a world class Infrastructure that provides clients with real-time service & 24/7 access to all information and products. online share trading come in picture. Online Share Trading is very less time consuming and expensive. So Online Share Trading is quick. They do not want to go to a broker. and electronic trading capabilities. Till now most of the customers were working with offline but in metro cities Online Share Trading is preferred because no one has much time to go to market and work with offline.

Reliance Money equity analysis 401+ companies updated daily. Services provided by the RELIANCE MONEY :-1. 2. To provide the highest possible quality of service. Reliance Money' Client Relationship Managers are available to the customers to help with their financial planning and investment needs. Equities & Derivatives :--Comprehensive services for independent investors.Reliance Money provides full access to all our products and services through multi-channels. Depository Services seamless delivery.ranging from Equities to Derivatives enhance your wealth and hence. active traders & Non-Resident Indians. achieve your financial goals. :--Premium research on :--Value added services for . 3.

technology they are offering their customer base their products and offerings and how they market their products etc. It’s totally based on realistic approach towards the online sharetrading senario in India.EXECUTIVE SUMMARY I am Kapil Kumar from the batch of 2007-09. I was assigned the task of Competitive Analysis. In the first phase I covered some other stock broking companies as compared to Reliance Money. I did my Summer Training with Reliance Money (www. In between to acquire new customers for Reliance Money was also an integral part of the job. In this process I spoke to different potential customers about the organization and its products in order to increase the popularity of Reliance Money. Promotion and Future of Online Trading & Mutual fund. For this I divided the whole Delhi into a five zones (East .North . Dehradun. . Dev Bhoomi Institute of Technology.com) from 24th of May 2008 to 19th of July 2008. I did follow market research procedure to get an idea about the future of Online Share Trading.reliancemoney. I examined thoroughly areas such as number of players. . I took places in Gurgaon & Delhi as a sample.Central).West. This research is based on the comparative analysis of Reliance Money with other broking houses and study of Future of Online Share Trading in India. South .

Unicon etc. b) Conducting Market Research in various parts of the city in order to get statistical data for commenting on the future of online share trading in India. ICICI direct. d) To collect the real time information about preference level of customers using Demat account and their inclination towards various other brokerage firms e. Indiabulls. Indiainfoline . d) To increase the product awareness of Reliance money as one window shop for investment solutions. e) To find the potential market for Reliance Money products and getting information about pricing strategy of competitors to fight cut throat competition. Alankit. . Religare .com.g. . Sharekhan . The entire project was divided into six parts: a) Gathering data about the leading online broking houses and compare the main points and find the strengths of Reliance Money compared to them. c) Customer Acquisition through sales of Trading / Demat Accounts in order to get a deep insight as to how the Organization actually performs these functions.PROJECT OBJECTIVE I was assigned with the task of comparing different online broking companies and predicting the future of online share trading in India as a part of the summer training curriculum.

The size of samples drawn from each zone depended on the prospective ness of the particular area.METHODOLOGY Methodology for Market Research I divided the entire city into zones and drew out samples out of each zone.g. not to forget that smart and timely investment in the share market can yield to enormous returns. . if a particular research area consisted of Offices then the sample size would obviously be higher than an area like Shopping mall or PVR. the office areas consist of people from the business class who have always been in the hunt for quick money.. This is because Office employees constitute the service sectors who are the active investors of today. Also. For e.

they were promised of a Demo by company sales force in case a sale had resulted. Canopy. Person with adequate interest leaves his contact information. For each and every customer personal quarries have been entertained after the sale is done. influenced prospective customers approach the organization. Pop-up windows having collaboration with various portals e.com etc. Personal References. Rediffmail. The organization has efficient sales stuff who excel in this job. After giving them a presentation about the product and its advantages over its competitors. Apart from these customers were also pitched through personal references and contacts. This work force been perfectly supervised by the Managers.Methodology for Customer Acquisition The leads for customer acquisition primarily came from the questionnaires filled up by prospective customers. they were pitched in at the addresses provided by them. Part time trainees are also appointed for the same.g. As a result of this publicity campaign. There are various ways to make people aware about the organization as such Marketing Research. . Thus all these factors sum up into a result oriented work force. These leads were the contacted through tele-calling and after developing a relationship. Moreover the organization takes every possible effort in order to spread mass awareness. Also references were collected from such people and the same methodology was repeated. Later on these leads are contacted personally for further development.

which materialized in the year 1990 and active operations commenced soon after its maiden public issue of equity shares aggregating Rs 20 crore in April 1990. in state of Gujarat with a capital of Rs 70. Internet and biotech startups. is the trustee company of the Reliance Capital Mutual Fund. Reliance Capital Trustee Co. These companies have accordingly ceased to be subsidiary of the company. RCL has also obtained approval from the Reserve Bank of India (RBI) and Insurance Regulatory and . media. privatization. Reliance Capital Ltd (RCL ). aggregating Rs 600 crore to strengthen the company's equity base and meet its long-term working capital requirements. The company's fee-based activities include a packaged deal offer to the corporates besides like issue management. divestment.000/-. mergers and acquisitions. Reliance Capital Asset Management is the investment manager of Reliance Capital Mutual Fund.'1995. the company disinvested part of its holding in Reliance Share and Stock Brokers and Reliance Land. underwriting. corporate advisory. formerly known as Reliance Capital and Finance Trust. The company has shifting its focus from a traditional NBFC to a special purpose vehicle and venture capital outfit developing infrastructure projects and investing in infotech. In Jan. corporate valuation. It is under the Anil Dhirubhai Ambani Group. The company was granted approval by the Securities and Exchange Board of India (SEBI) to act as an Approved Intermediary under the provisions of SEBI's Securities Lending Scheme. will help it boost its performance in the coming years. At present RCL has four wholly-owned subsidiaries. The company intended to access the capital market as part of the resource raising programme. Reliance Net Private Ltd and Observer Network Private Ltd. restructuring of operations. 1997. it came out with a rights-cum-public issue at a premium of Rs 130.COMPANY PROFILE Reliance Money is a group company of Reliance Capital. was promoted by Reliance Industries Ltd (RIL) in 1986 at Ahmedabad. During 1998-99.

. and accordingly has floated the two companies Reliance General Insurance Company and Reliance Life Insurance Company. It has firmed up plans to enter both life and general insurance categories.Development Authority (IRDA) for financial participation in the insurance sector.

Reliance Money is offering highly competitive brokerage fees with the option for “fixed flat fee structure”. promoted by Anil Dhirubhai Ambani Group firm Reliance Capital.Reliance Money. .000outlets. is offering the brokerage services across 700 cities including Delhi and Mumbai through 3.MANAGEMENT TEAM Reliance capital Director panel list Name Anil D Ambani Amitabh Jhunjhunwala Rajendra P Chitale V R Mohan C P Jain Designation Chairman Vice Chairman Director Company Secretary Director Reliance capital has following groups of companies Reliance capital entered into online trading business through “Reliance Money”.

equity.Reliance Money consumers can trade in equities. The Reliance Money trading websites comes with special security features 'Security Token'. for middlers and for experts. life insurance products. The new trading platform has many new features which basically fill up the gap between old online trading companies in India and their customers. amongst others. Account for beginners. mutual funds. Offline trading is also available through Reliance Money partners in your city and through phone by dialing 022-39886000. insurance and money transfer. mutual funds. Reliance Money. IPO’s. offshore investments. The new wonder is Reliance Money's pre-paid card for stock market brokerage. . which makes you online trading experience more secure without complexity. Stock Trading is available in BSE and NSE. IPO’s. Reliance Money offers a single window facility. the financial servi RelianceMoney.com is offering most dynamic web based trading environment to its customers. equity and commodity derivatives. commodities and offshore investments. Reliance money is offering 3 types of accounts to its customers. enabling people to access.

RELIANCE MONEY SERVICES RELIANCE MONEY .

Mutual Funds .Why You must choose Reliance Money? Single window for multiple products: Reliance money through its affiliates partners. Offshore investments . convenient. PRODUCTS OFEERED BY Reliance Money SHARES DERIVATIVES MUTUAL FUNDS IPOs POSTAL SAVINGS & BONDS INSURANCE COMMODITIES DELIVERY TRDING DAY TRADING GENERAL LIFE MARGIN PLUS ATST SPOT Reliance Money is the most cost effective. IPO’s. facilitates transactions in Equity. The highlights of Reliance Money offerings are: . and secure way to transact in a wide range of financial products and services. Equity & Commodity Derivatives.

Convenience: You have the flexibility to access Reliance Money services in multiple ways. through the Internet.Cost Effective: The fee charged by the affiliates of Reliance Money . Call and Transact (Phone) or seek assistance through business partners. . through whom the transactions can be placed is among the lowest charged in the present scenario. Transaction Kiosks .

. 3 in 1 integrated access : Reliance Money offers integrated access to your Banking . This number works as a third level password that keeps your account extra safe. Trading and Demat Account.Security: Reliance money provides secure access through an electronic token that flashes a unique a security number of Six digits after every 32 seconds (and ensures that the number used for earlier transaction is discarded).

Reliance is dedicated to empower Active Traders through personal service and advanced trading technology. Reliance Money performs clearing services for all securities transactions through its accounts. Mumbai (BSE) and NCDEX. Reliance Equity Analysis helps satisfy that need by rating stocks based on carefully selected. Equities and Derivatives Our Retail Equity Business caters to the needs of individual Indian and Non-Resident Indian (NRI) investors. dependable information. Derivatives and Commodities Instruments listed on National Stock Exchange of India Ltd (NSEIL). The Stock Exchange. • 2.SERVICES PROVIDED BY THE RELIANCE MONEY 1. Depository Services Reliance is a depository participant with the Central Depository Services (India) Limited for trading and settlement of dematerialised shares. Reliance equity analysis Building and maintaining your ideal portfolio demands objective.Comprehensive services including research and investing guidance for independent investors. Its Services is part of our value added services for our clients that create multiple interfaces with the client and provide for a solution that takes care of all your needs. . Reliance Insta trade . Reliance money offers the purchase and sale of securities which includes Equity. • Reliance Easy Trade . This objectivity is only one important difference in our ratings 3. And because we're not focused on investment banking. Reliance money offers broker assisted trade execution. automated online investing and access to all IPO's. fact-based measures. we don't have the same conflicts of interest as traditional brokerage firms. Through various types of brokerage accounts.

.. Reliance Money is dealing in all mutual funds explained in the diagram given below.

in accordance with a stated set of objectives. Thus a Mutual Fund strives to meet the investment needs of the common man by offering him or her an opportunity to invest in a diversified. Despite the expected continuing growth in the industry. MUTUAL FUND CONCEPT A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. debentures and other securities. Mutual funds raise money by selling shares of the fund to the public. much like any other type of company can sell stock in itself to the public. As financial market becomes more sophisticated & complex investors need a financial intermediary who provide the required knowledge and professional’s expertise on successful investment . The income earned through these investments and the capital appreciation realized (after deducting the expenses and profits of mutual fund managers) is shared by its unit holders in proportion to the number of units owned by them. The money thus collected is then invested in capital market instruments such as equities.The Indian mutual fund industry has already stared opening many of the exciting investment opportunities to Indian investors. An open-ended fund operated by an investment company which raises money from shareholders and invests in a group of assets. mutual funds are still anew financial intermidartry in India.INTRODUCTION TO MUTUAL FUNDS EMERGENCE OF MUTUAL FUNDS: Mutual funds now represent perhaps the most appropriate investment opportunity for most investors. Mutual funds then take the money they receive from the sale of their shares (along with any money made from previous investments) and use it to . professionally managed basket of securities at a relatively low cost.

Benefits of mutual funds include diversification and professional money management. Examples of public companies include IBM. it is important that you have a basic understanding of stocks and bonds Stocks Stocks represent shares of ownership in a public company. global fund. and General Mills. Bonds . although the price of a share in a mutual fund will fluctuate daily. equity fund. Ford. liquidity. A closed-end fund is often incorrectly referred to as a mutual fund. Microsoft. income fund. Stocks are the most common ownership investment traded on the market. such as stocks. crossover fund. shareholders receive an equity position in the fund and. sector fund.purchase various investment vehicles. shareholders are free to sell their shares at any time. regional fund. prime rate fund. Mutual funds offer choice. For most mutual funds. Before I dive into the definition of a mutual fund. fund of funds. Coca-Cola. growth fund. blend fund. but is actually an investment trust. including aggressive growth fund. index fund. capital appreciation fund. closed fund. bonds and money market instruments. money market fund. asset allocation fund. hedge fund. clone fund. There are many types of mutual funds. but charge fees and often require a minimum investment. balanced fund. in each of its underlying securities. and convenience. bond fund. in effect. In return for the money they give to the fund when purchasing shares. international fund. growth and income fund. depending upon the performance of the securities held by the fund. municipal bond fund.

and precious metals). You can receive interest and your principle back over predetermined amounts of time. There are many other types of investments other than stocks and bonds (including annuities. When you invest in a mutual fund. Bonds are the most common lending investment traded on the market.Bonds are basically a chance for you to lend your money to the government or a company. real estate. DEFINITION OF MUTUAL FUND A mutual fund is simply a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. The mutual fund will have a fund manager who is responsible for investing the pooled money into specific securities (usually stocks or bonds). Mutual funds are one of the best investments ever created because they are very cost efficient and very easy to invest in (you don't have to figure out which stocks or bonds to buy). . you are buying shares (or portions) of the mutual fund and become a shareholder of the fund. but the majority of mutual funds invest in stocks and/or bonds.

The flow chart below describes broadly the working of a mutual fund: GROWTH AND INCOME SCHEMES Mutual fund products or schemes are broadly categorized into Growth (also called Equity) and Income schemes. income schemes are considered suitable. money market instruments and government securities. Growth schemes invest predominantly in equity securities and Income schemes invest predominantly in fixed income securities such as debentures. . For risk-averse investors who are interested in investing in fixed income instruments or those with a shorter time horizon for investment (less than five years). Equities are a riskier class of assets. as they are susceptible for severe volatility in prices and hence growth schemes are recommended only for those investors who are interested in capital appreciation over the long term (five years and beyond).

Table 1: shows scheme-wise break-up of assets managed by mutual funds in India. The Indian mutual fund investor has so far displayed a clear inclination to be risk averse with over 80 per cent of the funds invested in Income. Money Market and Gilt schemes and only about 20 per cent in Growth and Balanced (a mix of Growth and Income) schemes .

ADVANTAGES OF MUTUAL FUNDS • Portfolio Diversification:
Mutual Funds normally, invest in a well-diversified portfolio or securities. MF enables investors to hold a diversified investment portfolio even with a small amount of investment. •

Reduction of Risk:
Investors in a mutual fund acquire a diversified portfolio, no matter how small his investment. Diversification reduces the risk of loss, as compared to investing directly in one or two shares, debentures, or others instruments. When investors invest directly, all the risk of potential loss is his own. A fund investor also reduces his risk in an other way.

Reduction transaction cost:
What is true of risk is also true of the transaction cost a direct investors bears all the cost of investing such as brokerage or custody of securities when going through a fund he has the benefit of economies of scale the funs pay lesser cost because of larger volumes, a benefit past on to its investors.

Liquidity:
Often Investors hold shares or bonds they can not directly easily and quickly sell. Investment in a mutual fund on the other hand is more liquid an investors can liquidate the investment by selling the unit to the fund if open – end or selling them in the market if the fund is close- end and the collect the funds at the end of a period specified the mutual fund or the stock market .

Convince & Flexibility :
Mutual Fund management companies offered many investors services that a direct market investor can not get. Investors can easily transfer their holdings from one scheme to the other and can get up date market information.

DISADVANTAGE OF INVESTING THROUGH MUTUAL FUNDS

No Control Over Cost:
An investor in a mutual fund has no control over the overall cost of investing. His investment management fees as long as he remains with the funds, albeit in returns for the professional management and research. A mutual fund investor also pays distribution cost which he would not incur in the direct investing . However this shortcoming only means that there is a cost obtains the benefits of mutual services.

No tailor made portfolio:
Investors who invest their own can build their own portfolios of shares, bonds and other securities. Investing through funds means he delegates this decision to the fund manager. The very high net worth individuals or large corporate investors may find this to be a constraint in achieving their objectives however most mutual funds help investors to overcome this constraint by offering miles of schemes- a large number of different schemes with in the same fund an investor can choose from different investment plans and construct a portfolio of his choice.

Managing a Portfolio of funds:
Availability of large number of funds can actually mean too much choice for the investors. He may again need advice on how to select a fund to achieve his objective quite similar to the situation when he has to select individual shares or bonds to invest in.

According to union budget 2002-03. which made investments in mutual fund units less attractive than the equity. This meant to provide a much higher yield to the mutual fund to enable them to distribute a higher return to the investors. Thus income accrued to assets Management Company by way of dividend or by way of capital gain is totally exempt. mutual funds are also relived of the tax liability as the incidence of tax is shifted on the unit holders of UTI and other mutual funds and sub clause (ii) & (iii) of clause 33 section (10) are omitted. Recognized fund implies that the fund should be registered under SEBI (mutual fund) Regulation. 1993. underwriting. the income of mutual fund in not taxable. commission or capital appreciation. Income from investment is otherwise taxable but under income tax act. mutual funds are treated as pass through entities since they invest fund of public and earns income on their behalf. . interest. It implies that whether the income is in form of dividends.TAX BENEFITS • Tax benefits to mutual fund: Mutual fund in India has a special feature as to income tax provision. One of the reason for mutual funds schemes being quoted at discount to NAV was the differential in tax treatment to equity shares and mutual funds units. a mutual fund has been conferred total tax exemption from income tax on all its income provided it is recognized fund. Under section 10(23D) of income tax Act1961. • Tax benefits to investor The income-received but the investor of mutual fund is taxable in their hands as dividends unless these are capital redemption.

How to invest in mutual fund Step one: Identify your investment needs Your financial goals will very. Step two: Choose the right mutual fund . based on your age. • What are my cash flow requirements? Probable answer: I need a regular cash flow or I need a lump sum amount to meet a specific need after a certain period or I don’t require a current cash but I want to build my assets for the future. lifestyle. you will know what you want out of your investment and can set the foundation for a sound mutual fund investment. Therefore. ad level of income and expenses among other many factors. I need regular income or need to buy a home or finance a wedding or educate my children or a combination of all • How much risk am I willing to take? Probable answer: I can take a minimum amount of risk or I am willing to accept the fact that my investment value may fluctuate or that may be for short-term loss in order to achieve a long –term potential gain. facial independence. the first step is to assess your needs. Going through this exercise. family commitments. Begins by asking you these question: • What are my investment objective and needs? Probable answer: these needs.

Degree of transparency as reflected in fraudulence and quality of their communication. you buy fewer units when the price is higher and more units when the price is low. Step three: Select the ideal mix of schemes Investing in just mutual fund scheme may to meet all your investment needs. • The track records or performance over the last few years & relation to the appropriate yardstick and similar funds in the same category.Once you have a clear strategy in mind you own have to choose which Mutual Fund scheme you want to invest in. this regular investing habit is made easy for you. the approach that works best is to invest a fixed amount at specific intervals. By investing a fixed sum each month. Some factors to evaluate before choosing a particular Mutual Fund. With many open. Step four: Invest regularly For most of us. • • How well the mutual fund is organized to provide efficient. This is called free cost averaging and is a disciplined investment strategy followed by investor all over the world. You may consider investing in a combination of schemes to achieve specific goals. the offer document of the scheme tells you its objectives and provides supplementary details like the track records of other schemes managed by the same Mutual Fund manager. . say every month. prompt and personalized service. thus bringing down your average cost per unit.ended schemes offering systematic investment plans.

. Step six: Start early It is desirable to start investing early and stick to a regular investment plan. If you start now. there are other benefits available for investment in mutual fund under the provision of the prevailing tax laws. Reap the rewards in the years to come. conservative or risk taking growth oriented or income earning. dividend / income distribution made by mutual fund is exempt from income tax in the hands of investor.whether taking an investor or retiring. You may therefore consult your tax advisor or chartered accountant for specific advice to achieve maximum tax efficiency by investing in mutual fund. Further. you will make more than if you wait and invest later. The power of compounding lets you year income and your money multiplies on monthly basis Step seven: The final step All you need to do now is to get in touch with mutual fund or your agent / broker and start investing. Mutual fund is suitable for every kind of investor.Step five: Keep your taxes in mind As per the current tax laws.

as it makes a one time sale of affixed number of unit later on unlike open – end funs . many successful funds stop issuing further subscriptions from new investors after they reach ascertain size and think they can not manage a larger fund without adversely affecting profitability.however to provide the much needed liquidity to investors many close – end funds get themselves listed on a stock . Unlike an open – end funds the unit cap[ital of a close – end fixed .note that an open – end fund is not obliged to keep selling / issuing new units at all times. NAV per unit is obtained by dividing the amount of market value of the funds assest by number of unit outstanding the number of unit outstanding goes up or down every time the fund issue new units or repurchase existing units.from investors perspective there basic classifications & that are as follows: • • • OPEN-END VS CLOSE END FUNDS LOAD AND NO LOAD FUNDS TAX EXEMPT VS NON TAX EXEMPT FUNDS OPEN END VS CLOSE END FUND: An OPEN END FUND is one that has unit available for sale and purchase at all times an investor can buy or redeem units from the fund itself at a price based on the net assest value (NAV) per unit. and.MUTUAL FUNDS CLASSIFICATION There are many types of mutual funds available to the investor however theses different types funs can be grouped into certain classification for better understanding . in other words the unit capital of an open – end mutual fund is not fixed but variable . close end funds do not allow investors to buy or redeem units directly from the funds .

when a fund invests in tax-exempt securities. trending through stock exchange enable investors to buy or sell units of a close end mutual fund from each other . or . Funds that make no such charges or load for sale expenses are called non load fund. after the 1999 union government budget. TAX-EXEMPT 0R NON. by deducting a specific amount from his initial contribution or By changing the funds/scheme with a fixed amount each year. Three usual ways in which funds sales expenses may be recovered from the investors are. These expenses may be recovered from the investor’s n different ways at different times. by deducting a specified amount from the redemption proceeds payable to investor These charges made by the fund manager t the investor to cover distributing/sales/marketing expenses are often called “load”. through a stock broker in the same fashion as buying or selling shares of a company. all of the . In India. advertising and marketing expenses. The load charged to the investor at the time of his entry is called “front-end and entry load” the load amount charged to the scheme over a period of time is called a “deferred load”. back-end or deferred load are load funds. during the stated number of years. • LOAD AND NON LOAD FUNDS: Marketing of mutual funds schemes involves initial expense. it is called a taxexempt fund.TAX EXEMPTGenerally. Funds that charge front end. The load that the investor pay at the of exit is called a “back-end or exit load”.At the time of investor exit from the fund/scheme.exchange . In India”SEBI has defined a load as the one time fee by the investor to allow the fund to meet initial issue expenses including brokers/agent/distributers/commisson. At the time of investors entry in to the fund/scheme.

classification of mutual funds from tax ability prospective has great significance for investors. Hence.dividend income received from any of the mutual funds is tax free in the hands of the investor. any capital gains arising out of sale of funds units are taxable. . funds other than equity funds have to pay a distribution tax. However. while other funds are taxable distributable income. In other words. While Indian mutual funds currently offer tax-free income. before distributing income to investor. equity mutual fund scheme are tax-exempt investment avenues.

SCHEMES OF RELIANCE MUTUAL FUND There are various schemes provided by RELIANCE Mutual Fund but as far my study is concerned that are undertaken foe further study is as follows: • • • • • • RELIANCE GROWTH PLAN RELIANCE LIQUID PLAN RELIANCE VISION PLAN RELIANCE TAX SAVER PLAN RELIANCE POWER PLAN RELIANCE SIP PLAN RELIANCE GROWTH PLAN INVESTMENT PATTERN: TYPE Equity and equity related securities Debt. ALLOCATION Upto 65% Upto35% . money market securities and cash APPOX.

It must be clearly understood that the percentage stated above are only indicative and not absolute and that they can vary substantially depending upon the perception of the investment manager . the quality of management.100 crores. For a corpus size of upto Rs. keeping in view market conditions. Risk will be reduced through adequate diversification of the portfolio. Such changes in the investment pattern will be for shot term. market opportunities. INVESTMENT STRATEGY: Approach to stock picking will be the dominant theme in stock selection for the Scheme. The AMC in selecting scrip will focus on the fundamentals of the business. the financial strength of the company and the key earnings drivers. from issuers of repute and sound financial standing. under most market conditions does not intend investing in illiquid equity and equity related securities. the AMC intends to invest in about 20-30 scrip’s. the approval of the Board of the AMC shall be obtained. If investment is made in unrated debt securities. Diversification will also be achieved by spreading the investments over a diverse range of industries/sectors. the intition being at all times to seek to protect the interest of the unit holders. the Fund may invest a part of the portfolio in . invest in unlisted and/or privately placed and/or unrated debt securities subject to the limits indicated above.CHANGE IN INVESTMENT PATTERN Subject to the regulations. applicable regulation and political and economic factors. The Scheme may however. The Scheme. the industry structure. as per the Regulations. the assets allocation pattern indicated above may change from time to time. Subject to the limits indicated above for investment in debt securities and money market instruments. sensitivity to economic factors.

The income distributed by the Fund after April 1. FUNDAMENTAL ATTRIBUTES OF GROWTH PLAN • Type : The growth plan is the open – end equity plan . This amendment will apply in relation to the Assessment Year 2000-2001 and the subsequent years. As per the Finance Act 1999. 1961 is exempt from tax. Growth Option The Scheme will not declare any dividends under this option. once the entire corpus is invested. The income earned by the Scheme will remain reinvested in the Scheme and will be reflected in the Net Asset Value. Portfolio Turnover: The portfolio turnover shall generally not exceed 75% per year. any income received from a mutual fund specified under clause (23D) of section 10 of Income Tax Act. The remaining net surplus after considering the dividend and tax. The Fund may also invest in Securities of issuers supported by Government of India or State Governments subject to such securities satisfying the criteria relating to rating etc.securities issued and/or guaranteed by State and Central Governments. payable there on will be ploughed back in the Scheme and be reflected in the NAV. if any. . accordingly. is exempt from income tax in the hands of the recipient under the above provisions.1999 will. Dividend Option The Trustee may approve the distribution of dividend by AMC either half yearly or yearly out of the net surplus under this Option.

500 per quarter for at least 2 quarters.500 per month for a block of 6 months.1. additional investments in multiples of Rs. Systematic Investment Plan: monthly minimum rupees Rs.3. • Fund objective: To seek to generate long – term capital appreciation from a portfolio that is invested predominantly in equity and equity related securities.5. 000. Nomination facility: plan. nomination facility is also available in this TERMS OF THE SCHEME • Application amount: Minimum Rs.50% .• Investment Pattern: Equity and equity related instruments upto 65 % & debt money market and cash upto 35%. • Investment horizon: Suitable for the investors who seek to invest in equity securities. • Entry load: Entry load of 1.000 and Rs.000 and Rs. • • Switch Facility: switch facility is avaible in this plan.3. Under monthly SIP the minimum investment is Rs. 1000 plus 4 post dated cheques for a minimum of Rs. Under Quarterly SIP the minimum investment is Rs. 500 each. • • Net assets value: Calculated & declared on every business day. 500.

Redemption request can be made for any amount for Rs.25% 2. Redemption price: Recurring expenses 1. the Trustee reserves the right to modify/alter the load structure under the Plan and may differential • • decide to charge an entry load/exit load or a combination of entry/exit loads or introduce a load structure on the Units subscribed/redeemed. . • Load structure: Entry Load: Nil Exit Load: Nil Further.5.• Repurchase / Redemption: units will be offered for sale and redemption can be done on every business day.50% expenses Other recurring expenses Total • TERMS OF THE SCHEMES Application amount: Minimum Rs. Dispatch of Redemption proceeds: Under normal circumstances with in three business days of acceptance of redemption request. At applicable NAV subject to exit subject to a maximum as prescribed under the Regulations. • • Redemption price : At NAV based price. .25% 1.000 per application and a minimum additional amount in Multiples of Rs 500 thereafter. • Recurring fees & expenses: Investment management 1..00% . 500 or more. if any.50% load. computed as follows: Redemption / Repurchase Price Investment management expenses Other recurring expenses .

suitable for investors seeking an exposure to the various sector. Net assets value. • • • Investment horizon: sect oral f und . Nomination Facility: nomination facility is also available in this plan.50% FUNDAMENTAL ATTRIBUTES OF RELIANCE VISION FUND • • Type: open-ended fund. Investment pattern: 25% .Total 1. money market and cash upto • Fund objective: To seek to generate long term capital appreciation from a portfolio that is invested predominantly in equity and equity related securities of companies. Quarterly minimum Rs 1000 plus 4 post-dated cheque for a minimum of Rs 1000 each. Systematic Investment Plan : monthly minimum rupees Rs. equity & equity related instruments in companies upto 75% in & debt . calculated and declared on every business day. • • Switch Facility: switch facility is available in this plan. 1000 plus 4post dated cheques for a minimum of Rs. . 500 each.

computed as follows: Redemption / Repurchase Price Recurring expenses : 1. 3 crore :2.00%of applicable NAV (ii) For the investment of Rs. 3 crore and above : nil Load: Nil • • Redemption Plan : . At applicable NAV subject to exit load.ended Open ended Assured return Total Aim wise classification of schemes 47 329 06 382 .5. Load structure: Entry Load: (i) For investment of less than Rs.000 per application and a minimum additional amount in Multiples of Re1.25% 1.TERMS OF THE SCHEMES • • Application amount: Minimum Rs.2007) Number of funds Public sector fund Private sector funds Type of schemes Close.25% 2.50% Exit Investment management expenses Other recurring expenses Total Structure of Indian Mutual Fund industry(As 33 09 24 on April 30. if any.

But this study is confined with schemes of mutual fund provided by Reliance Mutual Fund. During past years there is a major change in Indian mutual Market.Income Growth Balanced Liquid/ money market Gilt ELSS Total 117 120 35 32 31 47 382 The investor has various alternatives avenue of investment for the saving the major avenues for the investment among corporate securities are Equity shares. Many new players have launched their new schemes in the market. . As an investors want to Make such type of portfolio in which they can get higher return with minimum risk. Now a day’s Indian mutual fund industry has already started opening up many of exciting investment opportunities to Indian Investors. preference shares & debentures.

851 crore in 1997-98 to Rs. The primary index of BSE is BSE Sensex comprising 30 stocks. 2273 crore in 1999-2000 (April. which allows investors to shift their positions on the bourse.284 crore in 1998-99 and further to Re. there are 28 Regional Stock Exchanges However. In addition. The BSE Sensex is the older and more widely followed index. 968000 crore (9680 Bln). 9215 Bln). It facilitates more . the BSE and NSE have established themselves as the two leading exchanges and account for about 80% of the equity volume traded in India. Both the exchanges have switched over from the open outcry trading system to a fully automated computerized mode of trading known as BOLT (BSE On Line Trading) and NEAT (National Exchange Automated Trading) System. The average daily turnover at the exchanges has increased from Rs. Both exchanges have a different settlement cycle. The markets are closed on Saturdays and Sundays. Most key stocks are traded on both the exchanges and hence the investor could buy them on either exchange. Both these indices are calculated on the basis of market capitalization and contain the heavily traded shares from key sectors. NSE has the S&P NSE 50 index (Nifty) which consists of fifty stocks. The BSE has over 6000 stocks listed and has a market capitalization of around Rs. 1. 921500 crore (Rs.INDIAN STOCK MARKET OVERVIEW The Bombay stock exchanges (BSE) and the National Stock Exchange of India Ltd (NSE) are the two primary exchange in India. NSE has around 1500 shares listed with a total market capitalization of around Rs.August 1999).

efficient processing, automatic order matching, faster execution of trades and transparency. The Scripts traded on the BSE have been classified into ‘A’, ‘B1’, ‘B2’, ‘C’, ‘F’ and ‘Z’ groups. The ‘A’ group shares represent those, which are in the carry forward system (Badla). The ‘F’ group represents the debt market (fixed income securities) segment. The ‘Z’ group scripts are the blacklisted companies. The ‘C’ group covers the odd lot secutities in ‘A’, ‘B1’& ‘B2’ groups and Rights renunciations. The key regulator governing Stock Exchanges, Brokers, Depositories, Depository participants, Mutual Funds, FIIs and other participants in Indian secondary and primary market is the Securities and Exchange Board of India (SEBI) Ltd.

ABOUT NSE
The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges, which recommended promotion of a National Stock Exchange by financial institutions (FIs) to provide access to investors from all across the country on an equal footing. Based on the recommendations, NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the country.

On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956 in April 1993, NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment commenced operations in November 1994 and operations in Derivatives segment commenced in June 2000.

NSE Group

NSCCL

IISL

NSE.IT

NSDL

DotEx Intl. Ltd.

ABOUT BSE
The Stock Exchange, Mumbai, popularly known as "BSE" was established in 1875 as "The Native Share and Stock Brokers Association". It is the oldest one in Asia, even older than the Tokyo Stock Exchange, which was established in 1878. It is a voluntary non-profit making Association of Persons (AOP) and is currently engaged in the process of converting itself into demutualised and corporate entity. It has evolved over the years into its present status as the premier Stock Exchange in the country. It is the first Stock Exchange in the Country to have obtained permanent recognition in 1956 from the Govt. of India under the Securities Contracts (Regulation) Act, 1956.

The Exchange, while providing an efficient and transparent market for trading in securities, debt and derivatives upholds the interests of the investors and ensures redressal of their grievances whether against the companies or its own member-brokers. It also strives to educate and enlighten the investors by conducting investor education programs and making available to them necessary informative inputs.

A Governing Board having 20 directors is the apex body, which decides the policies and regulates the affairs of the Exchange. The Governing Board consists of 9 elected directors, who are from the broking community (one third of them retire ever year by rotation), three SEBI nominees, six public representatives and an Executive Director & Chief Executive Officer and a Chief Operating Officer.

The Executive Director as the Chief Executive Officer is responsible for the day-to-day administration of the Exchange and he is assisted by the Chief Operating Officer and other Heads of Departments.

The Exchange has inserted new Rule No. procedures and other matters relating to arbitration. Bye-laws & Regulations pertaining to constitution of the Executive Committee of the Exchange. consisting of three elected directors. The Committee considers judicial & quasi matters in which the Governing Board has powers as an Appellate Authority. continuance and suspension of member-brokers. margins and other monies payable by the member brokers to the Exchange. an Executive Committee. declaration of a member-broker as defaulter. . fees. matters regarding annulment of transactions.126 A in its Rules. has been Executive & CEO and Operating Officer constituted. etc. norms. Accordingly. deposits. admission. Director three SEBI nominees Chief or public representatives.

access and efficiency. Today's investor is more involved in managing his or her assets and analyzing a vast array of investment options. driven competition. and between 0. as the cost of servicing often-outweighed transaction volumes. We owe this to our investor fraternity. This was earlier very difficult. all consolidate into a valueadded product mix in tandem with evolving markets that are freer and fairer. The quality of execution. Paperwork diminishes significantly. Online brokerage ranges between 0. Access to online trading and latest financial happenings. More and more investors now want to know how their trades are executed. Once major investments in online infrastructure are over and done with .and with the economies of scale coming into play . The Net result: An inquisitive. apart from quotes and unbiased investment analyses.25-0.20 per cent of the value of transactions for non-delivery-based trades.05-0. transparency in dealings. Critical components of execution quality include the prices at which orders were executed as well as the speed of execution. informed and demanding investor.it is expected that brokerage rates would head further downwards. and pricing info that is accurate and real-time.95 per cent for delivery-based trades. . in turn. Technology and today's enabled investor have. Online trading has made it possible to universalize access to retail investors. in turn.INDIAN SCENARIO Strengths The `do-it-yourself' framework of online share trading offers retail investors the three benefits of transparency. and whether they have received the best possible price. and no more painful trips to your broker to check if everything's in order. resulting in reduced costs of trading. hinges on efficient order routing.

Trading shares on BSE/NSE has always been your dream. the hassle of finding a broker is not easy. Known as online brokers. Discount online brokers allow you to trade via Internet at reduced rates.” Opportunities You have some money to dabble with. Some provide quality research. Full service online brokerage is linked to existing brokerages.Transaction velocity is crucial. brokers have taken their trading rooms to the Internet. This is your main opportunity. These brokers allow their clients to place online orders with the option of talking/ chatting to brokers if advice is needed. they allow you to buy and sell shares via Internet. There's also a degree of investor skepticism about online payment and settlement mechanisms in spite of all the encryption and fire walling brought into play. other don’t. which hark back to the `physical' days. .Weaknesses Every thing in the world has a flip side to it . connections are lousy. Brokerage rates here are higher. And more often than not. Realizing there is untapped market of investors who want to be able to execute their own trades when it suits them. “The three main technology obstacles which have prevented Internet broking from taking off are: • • • Lack of Internet penetration Bandwidth infrastructure Poor quality of ISP infrastructure. When will you ever find the time? And besides. There are 2 types of online trading service: discount brokers and full service online broker. Time and technology will soon assuage these concerns.

Sharekhan. ICICIDirect. hitch their fate with what the FIIs are up to. Here when you talk to broker's staff while buying or . stockbrokers out here willingly (or under the force of circumstance) assume the role of `advisors'. Kotakstreet. And. we see this kind of frauds happening in different way due to nature of our society. offer free investment advice over the Net to lure rookie investors with misleading information. Especially when you consider the US. And all three include term investors as well as opportunists in their pecking order. non-vested stance. Internet fraud In India. courtesy the Net. sans the neutral.5Paisa. not all. And some. there's tremendous scope for growth.com. Tatatdw.com.com are some of the online broking sites in India. Unlike in the US. where trading over the Net accounts for about 55 per cent of the total volumes.75 per cent of the combined BSE and NSE daily turnover of about RS 11. And daily trading turnover is estimated in the vicinity of 0.com.Domestic funds. IndiaBulls. Some. for instance. foreign institutional investors and operators comprise the three main market constituents. in some Asian markets the figures as high as 70 per cent. Hurdles for online share trading 1.com. All this spells spurting volumes. But nobody gives a damn about the resultant volatility. I believe.com. Threats On to some threat perception . Prices of scripts can also be influenced to the advantage of vested interests.com.com.000 crore!!! The point is. Geojit securities. HDFCsec.

their role in determining share price . These figures compare with a peak level of net purchases of $3. PairGain Technologies.5 billion respectively in 2005 and 2006. who were responsible for net equity purchases of as much as $6. One of the most common forms of securities fraud on the Internet involves an imposter who attempts to manipulate the price of a stock by disseminating phony press releases or information.1 billion as far back as 1996 and net investments by FIIs of just $753 million in 2002. or creating phony websites. Most of these people have vested interest in stocks they recommend and promote. Volatility of India’s Stock Markets Recent market developments have once more focused attention on the volatility that has come to characterise India’s stock markets. 2.6 and $8. Movements in the Sensex during the two years have clearly been driven by the behaviour of foreign institutional investors (FIIs).selling. he will usually advise you to buy share which he has bought and plans to dump when price goes up. Channels like CNBS offer array of experts from economist to brokers to analyst. the sudden FII interest in Indian markets in the last two years account for the two bouts of medium-term buoyancy that the Sensex recently displayed. We have seen enough of PUMP and DUMP even without help of internet in cases of Harshad Mehta boom of 1992 and Ketan Parekh boom of 2000 (he even had cult following with Index of 10 shares called K-10). A recent example of this scheme is the hoax perpetrated against US based. In sum. Given the presence of foreign institutional investors in Sensex companies and their active trading behaviour. or buy or hold. Today lot of investor’s depending on TV channel for recommendation about stocks to sell.

This shallowness would also mean that the effects of FII activity would be exaggerated by the influence their behaviour has on other retail investors. who. the BSE Sensex incorporates just 30 companies.(750+2500)/=In Favour of Reliance money Ltd. or 1 Cheque of Rs. trading in whose shares is seen as indicative of market activity. Photo ID Proof Passport Pan Card Driving Licence Voter's ID Residence Proof • Passport(valid) • Voter's ID • Driving Licence(valid) • Bank Statement(latest) • Telephone Bill(latest) • Electricity Bill(latest) • Ration Card • Flat Maintenance Bill(latest) • Insurance Policy(latest) • Leave-Licence/Purchase Agreement(latest) • • • • 3 Photographs. in herd-like fashion tend to follow the FIIs when making their investment decisions. Indian stock markets are known to be narrow and shallow in the sense that there are few companies whose shares are actively traded.(750+500)/=In Favour of Reliance Money Ltd. REQUIRED DOCUMENTS DOCUMENTS:Pan card is must. . although there are more than 4700 companies listed on the stock exchange. Thus. 1 Cheque of Rs.movements must be considerable.

present in 20 Cities Online Account Types •Investor Terminal : Investors / Students •Trader Terminal : Day Traders / HNI’s PRICING FOR RETAIL CLIENTS . GOI securities.com 5paisa Company Background Indiainfoline was founded in 1995 and was positioned as a research firm In 2000 e-broking was started under the brand name of 5 paisa.com • HDFCsec.com • KotakStreet. Limited ground network.e.Competitive Analysis The Major competitors are: • 5paisa.com • IndiaBulls. It also acts as a distributor of various financial services i. Apart from offering online trading in stock market the company offers mutual funds online.com • ICICIDirect.com. Company Fixed Deposits. Insurance.

Investor Terminal •Account Opening : Rs 500 •Demat 1st Yr : Rs 250 •Initial Margin : Rs 2500(Compulsory) •Min Margin Retainable : Rs 1000 •Brokerage : Trading 0.50% each side + ST PRICING FOR HNI CLIENTS Trader Terminal •Account Opening : Rs 500 •Demat 1st Yr : Rs 250 •Initial Margin : Rs 5000(Compulsory) •Min Margin Retainable : Rs 1000 •Brokerage : Trading 0.25%) •Account Access Charges Monthly Rs 800.10% each side + ST Delivery 0. adjustable against Brokerage Yearly Rs 8000. adjustable against brokerage .10% each side + ST Delivery 0.50% each side + ST ( Negotiable to 0.05% each side & 0.

Deal Clinchers v/s 5 Paisa •Company Background Not having a very positive image.000 to be maintained in form of cash / securities to keep account active. This can be withdrawn only on closure of account. . Limit is provided EOD for shares sold from DP.T) is experiencing high frequency downtime between 3 – 3:30 p. limited network •Downtime Recent past 5 paisa Trader Terminal (T. or call Similarly limit released for shares sold under BTST is manual Delay in receiving pay-out of clear funds from trading to Bank Account •Min Account Balance Concept of Min Rs 1.m due to server load ( as their T. Online fund transfer through bank is not credited instantly.T is feature heavy compared to Speetrade charting) •Manual Accounting The 5 paisa accounting system is manual. relatively new in the broking arena.

Rs 750 with margin of Rs 50000. Min margin Rs 10 lakhs • PRICING OF KOTAK • • • • Account Opening : Rs 550 with kotak savings account. Kotak Securities limited is a joint venture between Kotak Mahindra Bank and Goldman Sachs.KOTAK SECURITIES Company Background Kotak Securities is the sister concern of Kotak Mahindra bank. Min margin Rs 20000. 0. KEAT premium at Rs 500 pm. Sms charge Rs 75. Sms free. 0. otherwise Rs 1200.36% Value Acc.40%) have been moved to the slab wise structure wef 1/4/2004. Online Account Types • • Kotak Gateway Account : KEAT desktop version. Demat : Rs 30 pm. Even older customers (on 0. Sms charge Rs 100. Min margin Rs 5 lakhs. Min Margin Retainable : Rs 1000.18% Privilege Circle Brokerage Square off 0. Brokerage Slab Wise : Higher the volume.25% & 0. Kotak Value Account: KEAT desktop version.23% 0. lower the brokerage.59% Gateway Acc. Kotak Privilege Circle Account: KEAT premium free. KEAT premium at RS 500 pm.45% 0.27% 0. Slab Structure of Kotak Delivery volume pm < 1 lakh 1 lakh – 5 lakhs 5 lakhs – 10 lakhs 10 lakhs – 20 lakhs 20 lakhs – 60 lakhs 60 lakh – 2 Cr > 2 Cr Delivery volume pm <25 lakhs Brokerage 0.55% 0.06% both sides Gateway acc .

02% Rs 1.046% “ 0.09% both sides 0.046% “ 0. 0.036% “ 0. Privilege acc.05% both sides 0.04% both sides 0. driven by slab structure •Many Other Charges Rs 30 p.5 Cr – 10 Cr 10 Cr – 25 Cr > 25 Cr 0.000 as retainable Margin to keep account active Rs 25 per call after 20 calls for the month •Restricted Access to Terminal Like product KEAT Desktop restricted distribution on payment of Rs 500.027% “ 0.m towards DP AMC charges DP incoming charges extra. Non refundable .5 Cr 5. Daily Sq.023% “ Settlement 0.045% “ 0.07% both sides 0.25 lakhs – 2 Cr 2 Cr – 5 Cr > 5 Cr Derivative Brokerage Slab Delivery volume pm < 2 Cr 2 – 5. up 0.03% both sides Value acc.032% “ Deal Clinchers v/s Kotakstreet •Rigid Account Opening Terms No Flexibility of A/c opening charges (Rs 550) + Compulsory margin Rs 5000/•No Customization of commercial Terms No Flexibility in Leverage – Dependent on Type of Account ( 4 to 6 times only) No flexibility in Brokerage.073% “ 0.

No AMC for this DP •Initial Margin : NIL •Brokerage : Negotiable. It offers a full range of financial services and Products ranging from Equities to Insurance. No AMC for this DP •Initial Margin : NIL •Brokerage : Negotiable Power IndiaBulls •Account Opening : Rs 750 •Demat: Rs 200 if POA is signed. . 450 + Relationship Managers who act as personal financial advisors Online Account Type •Signature Account : Plain Vanilla Account with focus on Equity Analysis.M Pricing of IB Accounts Signature Account •Account Opening : Rs 250 •Demat: Rs 200 if POA is signed. The equity analysis is a paid service even for A/c holders •Power Indiabulls: Account with sophisticated trading tools. low commissions and priority access to R.INDIABULLS Company Background IndiaBulls is a retail financial services company present in 70 locations covering 62 cities.

a. Charges are levied to move shares from IB pool Account to client DP account •Paid Research Services Access to an research even for an IB trading account holder is charged a min of Rs 500 a month •Margin Funding hoax The interest on funding starts on leveraged delivery trades from T+1 day itself @21% p. This can lead to over leveraged (Interest) & high frequency(Brokerage) trading. which may not be in the best interest of the client. .Deal Clinchers v/s IndiaBulls •POA for Clients DMAT All shares held by client trading with IB are moved to IB Pool Account and the same is shown as a reflection in client DP account. on a daily basis •The role of Relationship Manager Each RM is looked upon as a revenue generator and he gets a % on business generated from client.

MarginPlus Premium Trading interface of ICICIDirect Link is given to DBC partners and HNI’s •Account Opening : Rs 750 •Schemes : For short periods Rs 750 is refundable against brokerage generated in a qtr. 1st year charges included in Account Opening Plus a facility to open additional 4 DP’s without 1st yr AMC •Initial Margin : Nil •Brokerage : All brokerage is inclusive of stamp duty and exclusive of other taxes. Differentiated in services within the account 1. These schemes are introduced 3-4 times a year.30% per qtr Brokerage * Square Vol off p m .35% 0.70% 0. Delivery Vol Brokerage ** < 10 lakhs 10 lakhs .ICICI Direct Company Background ICICI Web Trade Limited (IWTL) maintains ICICIdirect. IWTL is an Affiliate of ICICI Bank Limited and the Website is owned by ICICI Bank Limited Account Types •ICICI Direct e-invest Account : Plain Vanilla Account with focus on 3 in 1 advantage.55% 0.45% 0.Cash on spot 2. •Demat: NIL.com.25 lakhs 25 lakhs -50 lakhs 50 lakhs – 1 Cr 1 Cr – 2 Cr 2 Cr – 5 Cr 0.75% 0.

day trades. Thus no control of square off price.10% each side. •No leverage for Delivery trades Delivery is restricted to the total money allocated into the trading account. •Restriction of Bank Account The choice of bank is restricted to ICICI Bank.> 5 Cr 0.m. •Higher Brokerage rates with slabs The delivery brokerage is pegged at 0. with outstanding net positions under margin segment automatically squared off at any time between 2:45 – 3:30 p. •Morning Trades Issue Being one of the websites with largest no of after hour orders which are pushed 1st thing in the morning.m. this makes is very unviable for customers dealing in . •No flexibility on leverage on Intra-day trades The leverage of 4 times is available for intra.25% Deal Clinchers v/s ICICIDirect •Poor online Interface Slow website interface with no real-time quotes creates a dissatisfaction among high frequency traders •Margin trading restriction The margin trading system is available up to 2:45 p. creates a choking of orders to the exchange.75% and trading at 0. causes delay of confirmations for new order placed during the early morning trades •Restriction of BTST The sale of shares purchased is restricted to T+1 day and is not permitted on T+2 Day.

the hdfcsec. Pioneers in setting up Dial-a-share services with the largest team of Tele-brokers Online Account Type HDFC Online Trading A/c : Plain Vanilla Account with focus on 3 in 1 advantage Pricing of HDFC Account •Account Opening : Rs 750 •Demat: NIL. Broking as a business is a small part of the portfolio of financial services and hence the commitment to resources is limited. is promoted by the HDFC Bank. Although progressively the delivery and trading brokerage reduce as volumes go up.15%* each side + ST Delivery 0.50%** each side + ST * Rs 25 Min Brokerage per transaction ** Rs 8 Min Brokerage per transaction Deal Clinchers v/s HDFC Securities •Poor online Interface Apart from having no product to cater to Day-Traders. HDFC SECURITIES Company Background HDFC Securities Ltd. •Lack of focus on Broking The core business of HDFC is Housing Finance and that of HDFC Bank is Banking.large volumes. The same is currently being revamped. HDFC and Chase Capital Capital Partners and their associates.com website is plagued with downtime. 1st year charges included in Account Opening •Initial Margin : Rs 5000/.for non HDFC Bank customers ( AQB) •Brokerage : Trading 0. .

0 70 60 50 40 70 y c n u q e r F 30 20 10 19 6 9 0 Shares Mutual Funds Bonds Others Comments.3 85. ANALYSIS OF THE QUESTIONNAIRE  In which of these Financial Instruments do you invest into? Valid Percent 67.0 Valid Shares Mutual Funds Bonds Others Total Frequency 70 19 6 9 104 Percent 67. effectively all clients are on cash and carry system. .7 100.•No Leverage No leverage is available to clients even for Intra-Day trades.8 8.3 100.3 5. It is clearly evident that 70% of the sample size prefer to invest in the share market over other financial instruments.0 Cumulative Percent 67.8 8.7 100.3 18.This question was meant to closely study the pulse and investment pattern in the stock market.3 5.3 18.6 91.

6 100.4 10.The result shows that online trading has taken the driver’s seat over the conventional trading ever since internet triggered a revolution across the globe.4 89.0 100.0 74.0 Valid Cumulative Percent Percent 74.4 10.6 100. Which type of trading do you prefer? Valid Online Offline Not Applica ble Total Frequency 77 16 11 104 Percent 74. .0 15.0 15.0 Not Applicable 11 O ffline 16 O nline 77 0 20 40 60 80 Frequency Comments.

7 23. If you prefer online trading then the reasons for it? Valid Cumulative Percent Percent 22.6 15.2 84.0 30 25 20 15 y c n u q e r F 27 21 10 20 20 5 0 Privacy User Friendly and time saving Convenience All the above Comments.0 53. Hence it does not come as a surprise as 20% of the sample size preferred all the three options.4 76.4 100.0 Valid Missing Total Privacy User Friendly and time saving Convenie nce All the above Total System Frequency 20 27 20 21 88 16 104 Percent 19.The preferred choice of online trading itself is a proven fact that most of them find it user friendly.2 26. .7 22. time saving.7 22.9 100.2 20.7 30.0 19.1 100. convenient etc.

 What factors motivates you to invest in securities? Valid Cumulative Percent Percent 24.0 32. About 3/5th of the sample size believed that there is a possibility in multiplying their money within a short period of time and about 1/4th of the sample population is driven by the IPOs issued by potential companies.7 60.6 6.7 100.0 24.0 Valid New IPO's Entry of FII's More returns in less time Others Total Frequency 25 9 63 7 104 Percent 24.0 8.7 93.7 60.6 6.0 8.0 New IPO's Entry of FII's M returns in ore less tim e 7 Others 25 9 63 Comments – This question was meant to understand why more and more investors have started creeping in the share market as never before. .3 100.7 100.

0 Frequency Vali d Yes No Total 84 20 104 Percent 80.2 100.0 Cumulative Percent 80.2 100. Does online trading motivate you to deal in securities? Valid Percent 80.8 19.0 Yes No 20 84 Comments-It is clear and transparent that online trading has become more convenient way to deal in securities as majority (as much as 85% ) of the sample population voted for it. .8 19.8 100.

3 4.0 100.2 4.9 17.0 Valid Yes No 3 Total Frequency 81 18 5 104 Percent 77. Have you heard about Reliance money? Valid Cumulative Percent Percent 77. Hence Reliance Money is a well heard off name among the investors.9 77. Reliance Money has its slice of share as it is familiar and popular among 80% of the sample population.8 100.9 17.3 95.8 100.0 Yes No 3 5 18 81 Comments – Out of the 100 people surveyed. .

4 61.0 Frequency Valid ICICI Direct Reliance money Indiabul ls Kotak Securiti es 5 Paisa 7 Total 14 27 23 21 18 1 104 Percent 13.0 Cumulative Percent 13.0 100.0 30 25 20 15 y c n u q e r F 2 7 2 3 10 14 2 1 18 5 0 IC I D IC irect S hare khan Indiab ulls K otak S ecurities 5 P isa a 1 7 Comments.1 20.5 26.5 26. Which brokerage firm do you prefer for online trading? Valid Percent 13.2 17.3 1.0 22.7 99.0 100.2 17.0 22. The push and pull factor worked out well for Reliance Money as it grabbed 27% of the market share out of .5 39.1 20.0 100.5 81.3 1.This question was framed to understand the effectiveness of Reliance money among its competitors.

This question was framed to read the mind of an investor.7 2.0 7.9 6.8 49. But the survey also reveals an interesting point that there is not much variation among the players in terms of investors’ consideration for a brokerage firm.5 90. The survey reveals that investors have become more analytical and rationale over the period of time as they have compelled themselves to take decisions on the basis of pre and post market research reports offered to them at regular intervals.9 100.9 6.4 97.1 100.7 2.8 87.0 Valid Brokerage Research Report Dial up Trade facility Exposure Account opening charges Others Total Frequency 32 51 8 3 7 3 104 Percent 30. Also to some extent investors look in .7 2.0 79.9 100.0 6 0 5 0 4 0 y c n u q e r F 3 0 5 1 2 0 3 2 1 0 8 7 3 3 0 B k ra e ro e g R s a hR p rt e e rc e o D l u T d fa ility ia p ra e c A c u t o e in c a e c o n p n g h rg s E p s re x ou O e th rs Comments.  What differentiates your share trading company from others? Valid Cumulative Percent Percent 30.8 49.8 30.the 100 people surveyed.7 2.0 7.

8 6.0 80.5 100. .0 Valid Daily Weekly Monthly Yearly Total Frequency 53 31 7 13 104 Percent 51.8 6.0 29.  How often do you trade? Valid Percent 51.5 100.0 29.0 60 50 40 30 y c n u q e r F 20 31 10 0 Daily W eekly 7 Monthly 13 Yearly 53 Comments. Most of the investors prefer daily and weekly trading to keep a watch on the volatility of the stock market so as to take decisions accordingly.for the brokerages charged by the trading firm while other options were hardly considered as pre requisites for online trading.7 12.0 Cumulative Percent 51.8 87.This shows how stock market has swept the nation as a whole.5 100.7 12.

0 Valid 0-15000 15000-35000 35000-60000 Total Frequency 26 61 17 104 Percent 25.0 58.7 16. The upper middle and middle class (income category ranging from 15000 – 35000) people have taken the primary seat as far as the number of people involved in trading is concerned.3 100. .0 25.0 35000-60000 17 15000-35000 61 0-15000 26 0 10 20 30 40 50 60 70 Frequency Comments.7 83.0 58.In which category does your income fall?(Per month in Rs) Valid Cumulative Percent Percent 25.0 100.People from different categories of income group have taken their chance to invest in the booming stock market.3 100.7 16.

5 69.5 13.7 12.5 13.5 4.7 95.2 81.2 100.5 31.What percentage of your earnings do you invest in share trading? Valid Percent 37.5 4.0 40 30 20 40 34 y c n u q e r F 10 15 15 0 U to 10% p U to 25% p U to 50% p A bove 50% .0 Frequency Valid Up to 10% Up to 25% Up to 50% Above 50% 5 Total 39 33 13 14 5 104 Percent 37.7 12.0 Cumulative Percent 37.8 100.5 31.8 100.

.About 70% of the sample size reveals that not more than 25% of their earnings will be pushed into the market which clearly signifies that how volatility in the stock market can influence the investors.Comments.

5 100.0 30 25 20 15 y c n u q e r F 27 24 22 10 18 13 5 0 m Im ost portant Im portant Neutral Less Im portant Not Im portant at all Comments.5 100.2 17.2 17.0 Cumulative Percent 26.3 12.0 Frequency Valid most Important Important Neutral Less Important Not Important at all Total 27 24 22 18 13 104 Percent 26.1 21.0 70. .5 100.3 12.1 21.0 23.Investors feel that they should be provided with the best of the services in order to associate themselves with a brokerage company over a long period of the time.0 23.0 49. (i) Rank the attribute "customer service" of a share trading company? Valid Percent 26.2 87. Hence more than half of the sample size surveyed preferred it to be an important parameter of a brokerage firm.

8 100.1 20.(ii) Rank the attribute "proper guidance" of a share trading company? Valid Percent 13.5 39.1 20.4 23.More than 50% of the sample population felt that they require proper guidance from the brokerage company in order to execute their operations effectively.2 3.0 96.0 Not Im portant at all Less Im portant N eutral Im portant m Im ost portant 0 10 20 30 40 50 Frequency Comments. .8 100.0 Frequency Valid most Important Important Neutral Less Important Not Important at all Total 14 41 24 21 4 104 Percent 13.2 100.0 Cumulative Percent 13.4 23.5 52.2 3.9 76.5 39.

(iii) Rank the attribute "regular updates" of a share trading company? Valid Percent 19.5 16.2 32.7 49.3 33.5 16.3 100.Surprisingly about 35 people out of the 104 surveyed thought that the regular updates provided by the company were not that important.7 100.3 100.0 4 0 3 0 2 0 y c n u q e r F 3 5 1 0 2 0 1 7 1 4 1 8 0 m s Im ota t ot p r n Im o n p rta t Nu l e tra L s Im o n e s p rta t N t Imota t a a o p r n t ll Comments.0 Cumulative Percent 19.2 13.0 Frequency Valid most Important Important Neutral Less Important Not Important at all Total 20 14 17 35 18 104 Percent 19.7 17. .0 82.7 17. Only 34 of the sample population felt the importance of regular market updates.3 33.2 13.

6 6.0 40 30 20 y c n u q e r F 34 28 25 10 10 7 0 most Important Im portant Neutral Less Important Not Im portant at all Comments.0 Frequency Valid most Important Important Neutral Less Important Not Important at all Total 10 7 28 25 34 104 Percent 9.0 32.7 100.3 43.9 24.0 Cumulative Percent 9.9 24.7 26.(iv) Rank the attribute "trustworthiness" of a share trading company? Valid Percent 9.3 67.6 16.6 6.A mere 20% of the sample population do consider the significance of the trustworthiness of the brokerage company with whom they have been associated.0 32. .7 100.3 100.7 26.

The brokerage charges imposed on the investors makes a significant impact on 50% of the sample population whereas another 35 felt that this factor is of no significance at all.8 33.3 100.5 4.5 4.5 66.7 100.4 12.0 Frequency Valid most Important Important Neutral Less Important Not Important at all Total 36 15 13 5 35 104 Percent 34.4 12. .0 Not Important at all 35 Less Important 5 Neutral 13 Important 15 most Important 36 0 10 20 30 40 Frequency Comments.(v) Rank the attribute "brokerage charge" of a share trading company? Valid Percent 34.6 14.0 Cumulative Percent 34.6 49.0 61.6 14.7 100.8 33.

0 Frequency Valid Excellent Very Good Good Average Below Average Total 31 24 29 17 3 104 Percent 29.1 27.8 97.8 23.1 27. .9 100.9 16.8 29.3 2.3 2.9 16.0 52.9 80.More than half of the sample population was satisfied with the kind of service that Reliance Money offers to its customers.9 100.8 23.0 Comments.1 100.(i) Rank the company "RELIANCE MONEY" according to the quality of service? Valid Cumulative Percent Percent 29.

(ii) Rank the company "ICICI Direct" according to the quality of service? Valid Percent 22.6 100.2 6.4 100.4 21.7 10.0 Cumulative Percent 22.1 39. more than 80% of the sample population is satisfied with its service offering.7 10. .0 Valid Excellent Very Good Good Average Below Average Total Frequency 23 41 22 7 11 104 Percent 22.6 100.1 61.2 6.1 39.7 89.5 82.4 21.0 50 40 30 y c n u q e r F 20 41 10 23 22 11 7 0 Excellent Very Good Good Average Below Average Comments-Even ICICI Direct had its share of slice.

(iii) Rank the company "INDIABULLS" according to the quality of service? Valid Cumulative Percent Percent 38.2 100.7 83.0 Valid Excellent Very Good Good Average Below Average Total Frequency 40 21 26 12 5 104 Percent 38.5 38.5 20.5 4.8 100.2 25.8 100.5 20.2 25.0 40 30 20 y c n u q e r F 10 0 Excellent Very Good Good Average Below Average Comments-Even India Bulls joined the rat race as a handsome 75 members opted for India Bulls in this regard.7 95.0 58.0 11.0 11. .5 4.

3 92.1 50.7 12.5 23.3 100.7 100.0 60 50 40 30 52 20 y c n u q e r F 10 13 0 7 Excellent Very Good 24 8 Good Average Below Average Comments-Kotak Securities was viewed as a low quality service provider as a mere 20 people voted in favour of this company as far as service offering was concerned.1 50.7 12.5 23.0 7.0 7.(iv) Rank the company "KOTAK SECURITIES" according to the quality of service? Valid Percent 6.7 19.0 Valid Excellent Very Good Good Average Below Average Total Frequency 7 13 24 52 8 104 Percent 6.0 Cumulative Percent 6.2 42.7 100. .

4 71.4 71.8 5.(v) Rank the company "OTHERS" according to the quality of service? Valid Cumulative Percent Percent 2.7 13.8 15.9 2.8 100.5 28.0 7.9 4.9 4.8 5.8 15.0 Valid Excellent Very Good Good Average Below Average Total Frequency 3 5 6 16 74 104 Percent 2.2 100.2 100. .0 80 60 40 y c n u q e r F 74 20 0 3 Excellent 5 Very Good 16 6 Good Average Below Average Comments-This result was very much predicted as other brokerage firms like 5 Paisa are still viewed as a low quality service providers as a bulk of them (about 75) were not in their favour.

7.FINDINGS 1. People who recently started trading was mainly motivated by online share trading concept. 4. 6. People with an eye for investment prefer to invest in shares. This is mainly due to the fact that shares provide high returns in less time. . People investing in shares prefer online trading because of convenience and time saving. 50% of the people are satisfied with Reliance Money. 3. Reliance Money is a known entity in the online business. In online share trading brokerage and research reports are the major criteria for selecting a broking company. 5. 2.

There should be a check on the promises made. This should be reduced by improving logistics. Customer care is not its best at Reliance Money.SUGGESTIONS 1. The Account opening time taken is about 7 working days. 2. . Company should invest more in its marketing strategies by giving ads in newspapers. The account opening charges should also be reduced to attract customers. This should be improved by prompt customer handling. 3. 4. Some of the customers do not get the service promised to them. 5. magazines. tv commercials etc.

I learnt some of the ground rules of selling my product. I learned to apply a lot of theoretical knowledge into practical use. I also came to know the various work culture rules and ethics that are required to be followed in the organization. 3. 4. I also learnt to analyze and interpret data by working on this project. 2. 5.LEARNINGS 1. . 6. I also learnt to handle the month end stress when it is time to complete the targets. As my work included the sales. I also found that it is very important to build a relationship with a client as it brings more business.

Some of the customers may be uninterested and may not have replied correctly. 3. 5. Respondent may also be biased due to several reasons. Usual sampling errors may exist. .LIMITATIONS 1. The universe selected was Delhi& Gurgaon region. 2. 4. Sample size was small which may affect the reliability of the result. So the result cannot be generalized.

Though it still has to go a long way but it has established its foothold in the metropolitan cities like Delhi. Their is huge difference between . Foreign individuals and institutional investors are now encouraged to participate into it. Mumbai etc. So. One such measure is the passing out of the Depository Act during the year 1996. there is a need for raising the Indian Capital market in to the international standards in terms of efficiency and transparency. Thus online share trading is gaining its popularity. It can therefore be said that online share trading is here to stay and will only grow to bigger proportions and will penetrate deeper into the economy. demand and selling of Reliance money products has increased. The dematerializing of shares coupled with the huge growth of internet has been the fuel for the online trading which is now a considerable part of the total trading.CONCLUSION Indian economy has been globalized and the capital market has been linked to the international financial market. After the launch of advertisement on the television . I found a great improvement in the brand awareness when company enters into second phase. Dematerialization of securities and under this system is one of the major steps aimed at improving and modernizing the capital market and enhancing the levels of investor’s protection measures which aims at eliminating the bad deliveries and forgery of shares and expediting the transfer of shares. I have seen both the phase of the company.

10 . So online trading& Mutual Fund would become the order of the day.Jan 2005 Applied fianance vol.C Beri Marketing Management By Philip Kotler Business today.com www.sify.com www.com www.com www.both the phase in terms of number of products selling.indiainfoline. In the end of the project I found that print media and electronic media is more effective to promote company products as a brand. 10 no.com www. Training Kit Provided by the Reliance Money.com www.com www.indiabulls. 7 .Dec2004 . taking over the traditional norms in the years to come. no.com Books Refered : Marketing Research By G.bseindia. BIBLIOGRAPHY • • • Securities Market (Basic) Module :--NCFM Economic Times.Jan 2005.nseindia.hdfcsec.icicidirect. 12.com www.reliancemoney. Feb2005 Applied fianace vol . Websites: www.kotaksecurities.icicibank.com www.

Which type of trading you prefer? (i) Online (ii) Offline (iii) Not Applicable Q3. If you prefer Online Trading then the reasons for it? (i) Privacy (iii) Convenience (ii) User friendly & Time Saving (iv) All The Above Q4. Does online trading system motivate you to deal in securities? (i) Yes (ii) No Q6. Have you heard about Reliance Money? (i) Yes (ii) No Q7. In which of these Financial Instruments do you invest into? (i) Shares (ii) Mutual Funds (iii)Bonds (iv) Others Q2. What factors motivates you to invest in securities? (i) IPO's (iii) More returns in less time (ii) Entry of FII's (iv) Others Q5. Which Brokerage Firm do you prefer for Online Trading? (i) ICICI Direct (ii) Reliance Money (iii) Indiabulls .ANNEXURE QUESTIONNAIRE Q1.

(iv) Kotak Securities (v) 5paisa (vi) Any other__________ Q8. Trustworthiness____ 5. Proper Guidance ____ 3. Customer Service ____ 2. Regular Updates ____ 4. What differentiates your Share Trading company from others? (i)Brokerage (iv)Magazine (vii) Others (ii) Research Report (iii)Dial up trade facility (v) Exposure (vi) Account opening charges Q9. What percentage of your earnings do you invest in share trading? (i)Up to 10% (ii) Up to 25% (iii) Up to 50% (iv) Above 50% Q12. How often do you trade? (i) Daily (ii) Weekly (iii) Monthly (iv) Yearly Q10. 5= Not Important at all) 1.(1=Most Important. Brokerage Charges_____ . According to your preference rank the attributes of a share trading company. In which category does your income fall? (Per month in Rs) i) 0-15000 ii) 15000 – 35000 iii) 35000 – 60000 iv) Above 60000 Q11.

Rank these share trading companies according to the quality of service they provide.Q13. 5= Very poor) .(1=Excellent.

Kotak Securities e. 3. 4. What additional features do you wish to have in Online Share Trading? Personal Information Name: Age: Sex: Phone No: Occupation Male Female . 2. India Bulls d. Reliance Money b. a. ICICI Direct c. 5.1. Others(Please Specify) Q14.