Professional Documents
Culture Documents
I, Brajesh Vir, hereby declare that the project report on Summer Training is
a result of my own work and my indebt ness to other work or publication, if
any, have been duly acknowledged.
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PREFACE
There is always a gap between theory & practice i.e. knowledge & its
application. Someone has said that “KNOWLEDGE IS POWER” but
looking into the present scenario, it does not stands good because simply
acquiring the knowledge does not fulfil the need to become an efficient
manager.
We are required to apply the knowledge acquired. Thus, the above saying
can rightly be modified as “APPLICATION OF KNOWLEDGE IS
POWER”. To bridge this gap, training is required. Training is the process
of learning. It is the application of that knowledge.
Training is required to clear the theoretical concepts & ideas that we have
read in the classroom. This is the opportunity to clear those bookish
concepts & thereby assimilate managerial knowledge.
I once again want to thanks all those who helped me in this endeavour.
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ACKNOWLEDGEMENT
First of all I would like to thank the Almighty God for His blessing
enabling me to stand in any facets of my life & my parents for their
continuous support.
I am also thankful to the following persons for their valuable guidance, co-
operation & support in making this training successful: Mr. Bijay Dash and
all staff member.
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EXUCUTIVE SUMMARY
The title of the project done at India Infoline Ltd. is “Investment Analysis and
Portfolio Management for Client Base of India Infoline.”
The main objective of the project was to analyse the customer’s investment
habit and provide them with required suggestions according to their risk
appetite which is known by the risk profiling questionnaire with the help of the
portal of India Infoline.
This include the different types of investment options like Equity, Commodity,
Currency, Future & Options and Insurance. We used to suggest them the
investment pattern which suits to their risk appetite and which will help them
to achieve their short term and long term goals.
While this time period we found that people are less aware of these investment
patterns and they failed to maintain the systematic investment which leads
them to a big loss. People think that investment in Equity and Commodity
should be done only when the market condition is good. They fail to diversify
their portfolio which is also one of the reason of losses.
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INDEX
Sr. No. Contents Page No.
1 Introduction 6
2 Research Methodology 7
3 Industry Overview 11
4 Transaction Cycle 20
5 India Infoline Profile 27
6 The Management 31
7 Terminal 35
8 Services By India Infoline 40
9 What is Insurance 48
10 SWOT Analysis 51
11 Major Player of The Industry 53
12 Findings 56
13 Limitation 58
14 Recommendations 59
15 Conclusion 60
16 Bibliography 61
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Introduction:-
Objective:-
Financial planning for new and existing client base of india infoline by
analysing various investment option like Equity, Commodity and Insurance
with respect to current market scenario to make balanced and effective
portfolio.
Overview
Investment analysis
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why they were wrong or right. You could make a proper
decision, extraordinary events could lose you money, and if
you didn't analyse it, you would shy away from making the
same decision.
Portfolio management
RESEARCH METHODOLOGY:-
Research Methodology refers to search of knowledge. One can also
define research methodology as a scientific and systematic search for required
information on a specific topic.
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In the first phase we were rained and taught on different things about
market.
After that we started facing the real life problems by facing customers.
We went to different companies and firms for corporate tie-ups.
They provide leads and we made calls to them.
We used to provide the details of different products provided by IIFL to
convince them for investment.
We presented power point presentations to different government offices
to make them aware of various investment products available in the
market.
We used to maintain the database of the leads.
Got knowledge of technical and fundamental analysis.
Target customer:-
Gov. Employees
School staff
Friends and Relatives
Activities:
Target Customer:-
HNIs
Retail Investors
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Activities:-
Tele-calling to existing client base of India Infoline in order to solve their
queries and give strength to their portfolio by make them aware about various
investment option provided by IIFL.
These investment option includes Equity trading, Gold trading, Gold SIP and
Insurance (For Guaranteed return).
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Coverage:-
For new clients, we targeted Navi Mumbai, more specifically Vashi (Schools
and corporate offices), Belapur (Gov. Offices), Nerul and Kharghar.
Time Period:-
Limitations:-
Deliverables:-
Data base that we collect from various sources we mentioned above are
definitely very useful for IIFL.
Corporate and Govt. office contacts will help IIFL to get large client base at a
time because customer comes under this category generally need tax planning
and Retirement planning.
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INDUSTRY OVERVIEW:-
Introduction:-
Stock exchanges to some extent play an important role as indicators,
reflecting the performance of the country’s economic state of health. Stock
market is a place where securities are bought and sold. It is exposed to a high
degree of volatility; prices fluctuate within minutes and are determined by the
demand and supply of stocks at a given time. Stock brokers are the ones who
buy and sell securities on behalf of individuals and institutions for some
commission.
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History of the stock broking industry
Indian Stock Markets are one of the oldest in Asia. Its history dates back to
nearly 200 years ago. The earliest records of security dealings in India are
meager and obscure.
In 1860-61 the American Civil War broke out and cotton supply from
United States of Europe was stopped; thus, the 'Share Mania' in India begun.
The number of brokers increased to about 200 to 250. However, at the end of
the American Civil War, in 1865, a disastrous slump began (for example, Bank
of Bombay Share which had touched Rs 2850 could only be sold at Rs.87). At
the end of the American Civil War, the brokers who thrived out of Civil War
in 1874, found a place in a street (now appropriately called as Dalal Street)
where they would conveniently assemble and transact business.
In 1887, they formally established in Bombay, the "Native Share and Stock
Brokers' Association" (which is alternatively known as "The Stock Exchange").
In 1895, the Stock Exchange acquired a premise in the same street and it was
inaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated.
Thus in the same way, gradually with the passage of time number of
exchanges were increased and at currently it reached to the figure of 24 stock
exchanges.
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Development
An important early event in the development of the stock market in India
was the formation of the Native Share and Stock Brokers‟ Association at
Bombay in 1875, the precursor of the present-day Bombay Stock Exchange.
This was followed by the formation of associations /exchanges in Ahmedabad
(1894), Calcutta (1908), and Madras (1937). IN addition, a large number of
ephemeral exchanges emerged mainly in buoyant periods to recede into
oblivion during depressing times subsequently.
In order to check such aberrations and promote a more orderly development of
the stock market, the central government introduced a legislation called the
Securities Contracts (Regulation) Act, 1956. Under this legislation, it is
mandatory on the part of stock exchanges to seek government recognition. As
of January 2002 there were 23 stock exchanges recognized by the central
Government. They are located at Ahmedabad, Bangalore, Baroda,
Bhubaneshwar, Calcutta, Chenni,(the Madras stock Exchanges ), Cochin,
Coimbatore, Delhi, Guwahati, Hyderbad, Indore, Jaipur, Kanpur, Ludhiana,
Mangalore, Mumbai(the National Stock Exchange or NSE), Mumbai (The
Stock Exchange), popularly called the Bombay Stock Exchange, Mumbai
(OTC Exchange of India), Mumbai (The Inter-connected Stock Exchange of
India), Patna, Pune, and Rajkot. Of course, the principle bourses are the
National Stock Exchange and The Bombay Stock Exchange, accounting for
the bulk of the business done on the Indian stock market.
While the recognized stock exchanges have been accorded a privileged
position, they are subject to governmental supervision and control. The rules of
a recognized stock exchanges relating to the managerial powers of the
governing body, admission, suspension, expulsion, and re-admission of its
members, appointment of authorized representatives and clerks, so on and so
forth have to be approved by the government. These rules can be amended,
varied or rescinded only with the prior approval of the government. The
Securities Contracts (Regulation) Act vests the government with the power to
make enquiries into the affairs of a recognized stock exchange and its business,
withdraw the recognition the task of regulating the stock exchange to the
Securities Exchanges Board of India.
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BSE (THE STOCK EXCHANGE OF MUMBAI)
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NSE (NATIONAL STOCK EXCHANGE)
NSE has been able to take the stock market to the doorsteps of the
investors. The technology has been harnessed to deliver the services to the
investors across the country at the cheapest possible cost. It provides a nation-
wide, screen-based, automated trading system, with a high degree of
transparency and equal access to investors irrespective of geographical
location. The high level of information dissemination through on-line system
has helped in integrating retail investors on a nation-wide basis. The standards
set by the exchange in terms of market practices, Products , technology and
service standards have become industry benchmarks and are being
replicated by other market participants. Within a very short span of time, NSE
has been able to achieve all the objectives for which it was set up. It has been
playing a leading role as a change agent in transforming the Indian Capital
Markets to its present form. The Indian Capital Markets are a far cry from what
they used to be a decade ago in terms of market practices, infrastructure,
technology, risk management, clearing and settlement and investor service.
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Historical Index Chart
The chart shows the data related to NIFTY Ups and Downs from May 2003 to
May 2013.
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NCDEX (National Commodities and Derivatives Exchange)
Why NCDEX?
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Facilities provided by NCDEX
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MCX (Multi Commodity Exchange)
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TRANSACTION CYCLE
Decision to
Funds/Securities Trade & Place
Order
Transaction
Cycle
Settlement of Trade
Trade Execution
Clearing of
Trade
You have some money to dabble with. Trading shares on BSE/NSE has
always been your dream. When will you ever find the time? And besides, the
hassle of finding a broker is not easy. Realizing there is untapped market of
investors who want to be able to execute their own trades when it suits them,
brokers have taken their trading rooms to the Internet. Known as online
brokers, they allow you to buy and sell shares via Internet.
There are 2 types of online trading service: discount brokers and full
service online broker. Discount online brokers allow you to trade via Internet
at reduced rates. Some provide quality research; other doesn’t. Full service
online brokerage is linked to existing brokerages. These brokers allow their
clients to place online orders with the option of talking/ chatting to brokers if
advice is needed. Brokerage rates here are higher. 5Paisa.com,
ICICIDirect.com, IndiaBulls.com, Sharekhan.com, Geojit securities.com,
HDFCsec.com, Tatatdw.com, Kotakstreet.com are some of the online broking
sites in India. With Net trading in securities and rapid consolidation between
multiple stock exchanges, the international securities marketplace is fast
becoming a "global village" through the creation of a universal virtual equity
market. Compared to the Western countries, online trading is still in its infancy
in India. With trading turnover at around Rs. 10 crores per day from online
trading compared to a combined gross turnover of around Rs. 9000-10,000
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crores handled by the BSE and NSE together, online trading has a long way to
go.
In the past, investors had no option but to contact their broker to get real
time access to market data. The Net brings data to the investor on line and net
broking enables him to trade on a click. Now information has become easily
accessible to both retail as well as big investors.
The development of broking in India can be categorized in 3 phases:
1. Stock brokers offering on their sites features such as live portfolio manager,
live quotes, market research and news to attract more investors.
2. Brokers offering on line broking and relationship management by providing
and offering analysis and information to investors during broking and non-
broking hours based on their profile and needs, that is, customized services.
3. Brokers (now e-brokers) will offer value management or services such as
initial public offerings on line, asset allocation, portfolio management,
financial planning, tax planning, insurance services and enable the investors
to take better and well- considered decisions.
In the US, 82 per cent of the deals are done on line. The European on
line broking market is expected to be of $8 billion and is likely to raise fivefold
by 2002. In India, presently Internet trading can take place through the order
routing system, which will route client orders to exchanges trading systems for
execution of trades on stock exchanges (NSE and BSE). This will also
Require interface with banks to facilitate instant cash debit or credit and
the depository system for debit or credit of securities.
Step-4: It is the process of review. Thus, the investor has to review the
order placed by clicking the review option. He may also re-set to clear the
values.
Step-5: After the review has been satisfactory; the order has to be sent by
clicking on the send option.
Step-6: The investor will receive an ``Order Confirmation’’ message along
with the order number and the value of the order.
Step-7: In case the order is rejected by the Broker or the Stock Exchange
for certain reasons such as invalid price limit, an appropriate message will
appear at the bottom of the screen. At present, a time lag of about ten
seconds is there in executing the trade.
Step-8: It is regarding charging payment, for which there are different
modes.
Some brokers will take some advance payment from the investors and will
fix their trading limits. When the trade is executed, the broker will ask the
investor for transfer of funds by the investor to his account.
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The above figure shows how the internet trading procedure.
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Factors to keep in mind while selecting online brokers:
Safety: Please make sure site has 128-bit encryption to ensure safety of
transaction online. ICICIDirect.com, 5paisa.com are few sites with 128-bit
encryption. You normally get a secured Login id and password. It is always
advisable to frequently change trading password. Ideally online trading site
should be fully integrated. The greater the backward integration, the better it is
for the customer. Ideally broking account, Demat account and bank account
should be linked electronically.
Rate refresh: Rate refresh has to be real-time with no time lag. The speed and
reliability comes with huge investment in technology. It is always advisable to
check rates of online broking sites with BSE/ NSE terminal rates.
Speed of execution: System has to be fast and reliable that does just one job-
executes your trades. The last thing you need is a site that is heavily congested
with the users who are downloading heavy jpeg graphs or pulling the latest
story why market is moving. The site should be one click wonder where
squaring off all your positions or cancelling all your pending orders takes one
click and a confirmation of action.
Trading limit: For trading, all sites provide 4 times buy and sell limit against
margin money put in by customer. For delivery of shares, buying limit is equal
to margin money put in by customer. Couple of sites also provides margin
funding for buying of shares.
Free trial period: Site should allow users free trial period to familiarize
yourself with system before you decide to become trading member of the site
Intraday chart/ historical chart: The site should provide intraday chart tick by
tick time and price data / historical chart for technical analysis by investors of
particular scrip. Lots of people trade based on charting packages.
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Success Factors for e-broking:
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INDIA INFOLINE PROFILE:-
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About India Infoline Ltd.
We are a one-stop financial services shop, most respected for quality of its
advice, personalized service and cutting-edge technology.
Vision
Introduction
India Infoline Ltd is listed on both the leading stock exchanges in India,
viz. the Stock Exchange, Mumbai (BSE) and the National Stock Exchange
(NSE). The India Infoline group, comprising the holding company, India
Infoline Ltd and its subsidiaries, straddles the entire financial services space
with offerings ranging from Equity research, Equities and derivatives trading,
Commodities trading, Portfolio Management Services, Mutual Funds, Life
Insurance, Fixed deposits, GoI bonds and other small savings instruments to
loan products and Investment banking. India Infoline also owns and manages
the websites, www.indiainfoline.com and www.5paisa.com.
India Infoline Ltd, being a listed entity, is regulated by SEBI (Securities and
Exchange Board of India). It undertakes equities research which is
acknowledged by none other than Forbes as 'Best of the Web' and '…a must
read for investors in Asia'. India Infoline‟s research is available not just over
the internet but also on international wire services like Bloomberg (Code:
IILL), Thomson First Call and Internet Securities where it is amongst the most
read Indian brokers. Its various subsidiaries are in different lines of business
and hence are governed by different regulators. The subsidiaries of India
Infoline Ltd are:
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India Infoline Securities Pvt. Ltd
India Infoline Securities Pvt. Ltd is a 100% subsidiary of India Infoline Ltd,
which is engaged in the businesses of Equities broking and Portfolio
Management Services. It holds memberships of both the leading stock
exchanges of India viz. the Stock Exchange, Mumbai (BSE) and the National
Stock Exchange (NSE). It offers broking services in the Cash and Derivatives
segments of the NSE as well as the Cash segment of the BSE.
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to the product provider.
Mortgages & Loans
IILD has also entered the business to distribution of mortgages and loan
products during the year 2005-2006. The business is still in the investing phase
and we plan to roll the business out across its pan-Indian network to provide it
with a truly national scale in operations.
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THE MANAGEMENT:-
Mr. Nirmal Jain
Nirmal Jain is the founder and Chairman of India Infoline Ltd. He holds an
MBA degree from IIM Ahmedabad, and is a Chartered Accountant (All India
Rank 2) and a Cost Accountant. He has had an impeccable professional and
academic track record. He started his career in 1989 with Hindustan Lever
Limited. During his stint with Hindustan Lever, he handled a variety of
responsibilities, including exports and trading in agro- commodities with Rs3bn
annual turnover. He then joined hands with two local brokers to set up their
equity research division, Inquire, in 1994. His work set new standards for
equity research in India. In 1995, he founded his own independent financial
research company, now known as India Infoline Ltd.
Mr. R Venkataraman
Mr Sat Pal Khattar joined the Board with effect from April 20, 2001. Mr
Sat Pal Khattar is a lawyer by profession He was the founding partner of a firm
of solicitors in Singapore named KhattarWong and at present is a Consultant in
the said firm. He is also a director of a number of public companies in
Singapore and India. He is the Chairman of 'Network India', a body
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sponsored by the Government of Singapore, which promotes two-way
business contacts between Singapore and Indian business interests.
Mr Sanjiv Ahuja joined the Board with effect from August 28, 2002. Mr
Ahuja graduated from National University of Singapore with a degree in
Computer Science and is also a Certified Public Accountant. He started his
career in 1988 with Accenture (formerly Andersen Consulting) and has worked
on several large projects particularly in the electronics and utilities industries.
He joined the Thakral Group of Companies in 1991 as the Chief Executive of
their electronics packaging and Warehousing company in Singapore and has
also headed the group's Indian Investments division. He started his own
investment advisory and consulting company in 2001, named Centennial
Management Consultants Private Limited, focusing on investment mediation
and investment management and advice. At present, he is also an Executive
Director with Corporate Brokers International Private Limited, a reputed
Singapore based mergers and acquisitions firm focusing on the SME space and
also a board member of the Singapore Indian Chamber of Commerce and
Industry, a post he has held since 2002. He is very familiar with the South
Asian and South East Asian Markets and has direct investment experience in a
variety of industries including real estate development, distribution and
information technology. Mr Ahuja has an experience of more than 17 years.
Mr Nilesh Shivji Vikamsey joined the Board with effect from February 11,
2005. Mr Vikamsey qualified as a Chartered Accountant in 1985 and has been
a member of the Institute of Chartered Accountants of India since 1985. He has
a Diploma in Information System Audit ("DISA") from the Institute
ofChartered Accountants of India in 2003. In 1985, Mr Vikamsey was inducted
as partner in M/s Khimji Kunverji & Co., Chartered Accountants and was in
charge of the audit department till 1990 and thereafter also handles assignments
related to financial services, consultancy, investigations, mergers and
acquisitions, valuations etc. Mr Vikamsey is a director of Alpha Garments
Private Limited, English Apparels Private Limited, HLB Technologies
(Mumbai) Private Limited, Miloni Consultants Private Limited & Chairman of
HLB India. Mr Vikamsey is a member of the Accounting Standards Board and
erstwhile Member of the Vision & Restructuring Commitee of Institute of
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Chartered Accountants of India and member of Expert Committees of Law and
Company Affairs, Infotainment & Media and Economic & Business Reforms
formed by the Indian Merchants' Chamber.
Mr Kranti Sinha joined the Board with effect from January 27, 2005. Mr
Sinha graduated from the Agra University with a Master’s degree. He started
his career in 1965 as a direct recruit Class I officer with Life Insurance
Corporation of India and has worked in various capacities and at different
locations throughout the country. He worked at various managerial levels and
rose through the hierarchy to serve as the Director and Chief Executive of
LIC Housing Finance Limited from August 1998 to December 2002 and
concurrently as the Managing Director of LICHFL Care Homes (a wholly
owned subsidiary of LIC Housing Finance Limited). He retired from the
permanent cadre of the Executive Director of LIC. He has also served as the
Deputy President of the Governing Council of Insurance Institute of India and
as a member of the Governing Council of National Insurance Academy, Pune
apart from various other such bodies. He is currently the Managing Director of
the Global Institute for Financial and Education Services (India) Private
Limited (a wholly owned subsidiary of The Global Institute, LLC, USA). Mr
Sinha is also on the Board of Directors of Hindustan Motors.
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Changing trend
Remember the time when you left orders with your broker in the morning
and received a confirmation fax late in the evening?
You wondered whether you had acquired the shares at the best possible
price for the day. Today, the picture is different. Imagine a scenario where you
log on to your account, get the live quotes of scripts you are interested in, get
advice from experts and research reports on your investment choice and then
just click the mouse to place your order, pay the amount due (which
automatically gets debited into your account with the on line brokerage firm),
get your account statement, and the delivery of your shares into your Demat
account. All this through just one click of a mouse. Seems like a dream? But
with online trading this has become a reality. A few seconds later, you get the
confirmation on your screen. And after the trade settlement, your bank and DP
accounts will reflect the changes accordingly.
So, finally the changing trend is known as E-trading which really means
Buying and selling securities via the Internet or other electronic means such as
wireless access, touch- tone telephones, and other new technologies with online
trading. In most cases customers access a brokerage firm's Web Site through
their regular Internet Service Provider. Once there, customers may consult
information provided on the Web Site and log into their accounts to place
orders and monitor account activity"
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Investor Terminal
Target customer segment
Investors who invest quite often, churn their portfolios regularly and
keep a close watch on the market. They need to watch live quotes and
live charts.
Active stock market traders with medium volumes
Students and researchers who need live streaming quotes and intraday
charts
Corporate treasury people
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Trader Terminal
Target customer segment
Quality
User Friendly, attractive & colourful Website.
Design
The website of India Infoline namely www.Indaiainfoline.com has been
specially designed to facilitate its users to buy and sell shares in an instant
at any time and from anywhere they like. The site is user friendly allowing
even a layman to easily operate without any hassles
Brand Name
The company as a whole in its offline business has named itself as
5Paisa.com.
Services
India Infoline offers its customers, depository services and trade
execution facilities for equities, derivatives and commodities backed
with investment advice tempered by decades of broking experience. The
teams of its dedicated analysts are constantly at work to track
performance and trends.
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Brokerage charges under India Infoline
Regulatory Charges
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Securities Transaction Tax
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SERVICES PROVIDED BY INDIA INFOLINE:-
TT Advance TT 5
OFFLINE
The Off-Line account is trading account through which one can buy and
sell through his/her telephone or by personal visit at India Infoline shop. This
a/c is for those who are not comfortable with computer and want to trade.
Offline A/c is the A/c for the investors who are not familiar with the
use of computer.
The A/C opening charges Rs.555 (One time)
Lifetime membership. No AMC.
ONLINE
Anyone who have A/C either of above banks they can use this facility. If
you haven’t A/C in the above of the Bank Company opens your a/c in either
of this bank at the time of Demat opening.
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This account enables you to buy and sell shares through our website. You
get features like
How to use:
By entering the Login ID and Browsing Password you can login into your
A/C.
Features of Account:-
You will need access to a computer which has at least the following
configuration:
Pentium 3 PC, Minimum 128 MB RAM
Windows 2000 or Higher
Internet Connection
Internet Explorer 6.0
Java enabled in IE
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Stock Ideas
India Infoline offers its clients RM facility. You can get trading tips
by calling India Infoline RM. Also you can place your order with your cell
phone or landline phone.
Online IPO
Every investor’s needs and goals are different. To meet these needs,
India Infoline provides a comprehensive set of research reports, so that
one can take the right investment decisions regardless of their investing
preferences! The Research and Development at India Infoline is done at
its Head office Mumbai.
The R&D department forwards all the details regarding all stocks
and scripts to all the branches through Internet. The quarries regarding
stock positions and other relevant matter of the branch heads of each
branch is being solved through teleconference.
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Institutional Research - Each individual company is analysed and its
results are placed on our site. Here Rating is given on relative basis, in the
form of underperformer, neutral and out performer.
Neutral: This stock is expected to more or less give you the index rate
of return or a return not significantly higher or lower than the market
index.
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SMS Services
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What is Insurance?
Insurance is a form of risk management in which the insured transfers the
cost of potential loss to another entity in exchange for monetary compensation
known as the premium.
IIFL in Insurance.
India infoline has corporate tie-up with ICICI Prudential ltd. As we
known ICICI Pru. is a well-known name of Indian insurance industry and tie-up
with IIFL give new gloom to its name. ICICI Pru. expands its client base
through India infoline.
As a result of this tie up, large client base of IIFL can get the benefit of
long term guaranteed return product and tax planning.
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ICICI Prudential Life's capital stands at Rs. 4,793 crores (as of March 31,
2013) with ICICI Bank and Prudential plc holding 74% and 26% stake
respectively. For the financial year 2013, the company has garnered total
premium of Rs 13,538 crores and has underwritten over 13 million policies
since inception. The company has assets held over Rs. 74,000 crores as on
March 31, 2013.
For the past decade, ICICI Prudential Life Insurance has maintained its
dominant position (on new business retail weighted basis) amongst private life
insurers in the country, with a wide range of flexible products that meet the
needs of the Indian customer at every step in life.
The introduction of the draft Open Architecture guidelines has also set the
tone for a new trend in distribution. Open Architecture could enable an
insurance company to offer its products at any branch of any bank across the
country, through multiple tie-ups. This dramatically enlarges the range of
options available to potential buyers of insurance products by increasing
insurance penetration into geographies left untapped so far. If a particular life
insurer has not launched business in all the branches of a bank, another insurer
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can launch insurance business in those branches. The potential of Banc
assurance is estimated at 80,000 bank branches but barely 10% of bank account
holders buy life insurance from this channel. Open Architecture makes this is a
huge scalable opportunity for the insurance business.
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SWOT ANALYSIS:-
During this training at India Infoline, I had come to know the Strengths –
Weaknesses – Opportunities – Threats for the company and it is very useful for
a company to analyse them. Therefore, the SWOT analysis is presented here and
the suggestions for maintaining strengths and removing weaknesses are
explained.
STRENGTHS:
Well-maintained infrastructure.
-line trading products.
Lowest brokerage and other charges w.r.t. Competitors.
The best investment advice correct up to 70-90 % through dedicated
Research and reports.
Wide product range to enable the clients to choose the best alternative.
One of the best DPs in India.
A positive image in the existing clients.
WEAKNESSES:
OPPORTUNITIES:
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THREATS:
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MAJOR PLAYERS IN THE SECTOR:-
INDIABULLS:
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The retail business unit provides equity investment solutions to
more than 50,000 investors through 270 outlets spanning 150 cities and
22 states. MOSt provides Advice-Based Broking, Portfolio Management
Services (PMS), E-Broking Services, Depository Services, Commodities
Trading, and IPO and Mutual Fund Investment Advisory Services. Its
Value PMS Scheme gave a 160% post-tax return for the year ended
March 2004.
In AsiaMoney Brokers Poll 2003 MOSt has been rated as the Best
Domestic Research House- Mega Funds ,while in 2000 and 2002 it has
been rated as the Best Domestic Equity Research House and Second best
amongst Indian Brokerage firms respectively.
SHAREKHAN:
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Comparative analysis of different players:-
Comp Name India Infoline Motilal Oswal Sharekhan Edelwiess India Bulls
Cities 500 527 510 144 523
Branches 3000 1484 1950 297 1638
Client Base(In '000) 500 773 1000 450 475
NW(In Cr) 1800 1400 1550 2500 1700
3000
2500
2000
Cities
1500 Branches
Client Base(In '000))
1000
NW(In Cr)
500
0
India Motilal Sharekhan Edelwiess India bulls
infoline oswal
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FINDINGS:-
India Infoline is among the best broking firms, preferred by the customer.
People are less aware of investment options and they do not know their
risk appetite, which leads to loss in most of the cases.
Customer of India Infoline is satisfied with its service.
Most of the companies provide similar products to the customer.
People trade only in equity; most of the people do not trade in derivatives
& commodity.
People prefer the firm which offers low brokerage and neglects the
benefits of research and suggestions provided by the firm.
People are not aware of the benefits of trading in derivatives so lots need
to be done in this direction.
People in India generally prefers safe & risk less investment avenue. Few
of them have fear of stock market in their mind.
People wants to invest in stock market but they have not adequate
knowledge of stock market so firms should educate people & help them to
invest in stock market.
People think that Insurance is a bad product for returns.
India Infoline is providing Insurance products of ICICI Prudentials which
has lots of opportunity.
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LIMITATION:-
Lack of awareness of capital market:
Since the area is not known it takes a lot of time to convince people to
start investing in shares primarily in IPOs.
Some people are comfortable with traditional system:
As people are doing trading from their respective brokers, they are quite
comfortable to trade via physical form of paper.
Lack of Techno Savvy people and poor internet penetration:
Since most of the people are quite experienced and also they are not
techno savvy. Also Internet penetration is still poor in India.
Some respondents are unwilling to talk:
Some respondents either do not have time or do not want to talk as they
are quite annoyed with the phone calls.
Inaccurate leads:
Sometimes leads are provided which had error in it, having wrong
numbers or wrong names.
The time constraint was one of the major problems.
The study was limited as there is a vast range of products are available in
the market.
The lack of sources for the analysis part.
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RECOMMENDATIONS:-
1) IIFL needs to diversify various investment options initially, so that
customer can make profit during bullish market condition and avoid large
losses during bearish condition through Hedging.
2) As we experienced that most of the customers are not aware about all the
products of IIFL, So in order to aware them IIFL needs to organize
monthly Seminar so people can diversify their portfolio with new options
and get effective return
This activity can help IIFL to market their products effectively and to
attract large number of Retail investors.
3) The company should focus on the customer satisfaction to make a long
term healthy relationship.
4) IIFL needs to develop proper software for Follow-ups
As most of the hot leads generated by us (Interns) are remain ineffective
just because of the improper follow-up.
5) IIFL needs to improvise its physical resources like Telephone and
computers because we experienced difficulties at the time of tele-calling
and data base management.
6) IIFL should link as many PSU banks as clients want to use their own bank
account.
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CONCLUSION:-
On the basis of the study it is found that India Infoline Ltd. Is better service
provider than that of other stock brokers because of their timely research and
personalized advice on what stocks to Buy and Sell. India Infoline Ltd. provide
the facility of mobile trading as well as relationship manager facility for
encouragement and protect the interest of their investors. It also provides the
information through the internet and mobile alerts that what IPOs are coming in
the market and it also provides its research on the future prospects of the IPO.
India Infoline Ltd. has a vast range of investment products like Equity,
Commodity, Currency and it also deals with Insurance products of ICICI
Prudentials.
Study also concludes that people are less aware of commodity and currency
market and Insurance products which is going to be most profitable and biggest
market in India.
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BIBLIOGRAPHY:-
Websites:
www.google.com
www.bseindia.com
www.nseindia.com
www.moneycontrol.com
www.indiainfoline.com
www.sharekhan.com
www.indiabulls.com
www.icicidirect.com
www.hdfcdecurities.com
NEWSPAPERS:
1. Economic times
2. Times of India
3. Financial express
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