CHAPTER-1

INTRODUCTION
OF
TOPIC
STUDY

OBJECTIVES OF STUDY:

The main objective of conducting this research is as under:

• Understand the nature of stock market.
• Mapping up the Potential customers of Reliance money.
• Understand the psychology and sentiments of investor.
• Know the procedure of trading in stock market.
• Gathered the useful information from different kinds of investors
• Know the investing behaviour in stock market
• Know the deciding factor of investing money in stock market

SCOPE AND SIGNIFICANCE OF THE STUDY:

The researcher completed the research on the topic of “INVESTOR’S STRATEGY

WHILE INVESTING IN EQUITY MARKET”. This is a very interesting and
knowledgeful topic for any other person. The research helps to know the investor
behaviour in terms of the trading and investment strategies used by investor in stock
market. The study is completed on those people who live in DELHI. The study tells that
how an investor trade and invest in stock market.
SCOPE OF THE STUDY

• Help to new researcher to know the stock market.

• Help to know the investor strategies for new researcher.
• Help to know the importance of demat account.
• Help to give the brief idea of trading methods of investor who lives in Jaipur.

SIGNIFICANCE OF THE STUDY

• Give the brief knowledge of Reliance Money.

• Give the knowledge of Stock Market.
• Give the information related to investor strategy.
• Help in finding the potential customers for reliance money.
• Increase the Reliance Money clients.
• Met the different kinds of people and know the nature of investment.
• Help to increase the knowledge related to market in practical manner.

1. What is a stock market?

The stock market is a central market place for raising funds by Governments and various
corporations to expand their businesses and shareholding base. This is usually done by
issuing shares in a company which can then be bought and sold.

2. What is a stock exchange?

The fundamental role of a stock exchange is to provide a fair and internationally

competitive market place for the trading of financial securities for the benefit of all
participants (Listed Companies, Institutions and small investors). All countries who have
a local stock exchange aim to provide a market place whereby:

• Companies and Governments can raise funds, and

• Investors can invest surplus funds in anticipation of receiving dividends and
capital gain from their share investments.

3. What is a share market?

The share market comprises of two markets:

The first is a primary market whereby companies or Governments issue new shares in
order to raise capital to expand their operations (for whatever reason) and take on a wider
range of shareholders. This is done by issuing an investment statement and/or a
prospectus through an organizing or underwriting broker.

The second is the secondary market, which is the central market place provided by the
stock exchange, where investors trade existing securities/shares.

4. What is a share and what is their use?

A share is a basic unit of ownership in a company. When you buy a share, you
become a part-owner of a company. Ownership of that company is divided into
millions of parts. These parts are called shares and each person who buys a share is a
shareholder.

• The directors of the company are employed to manage the business, but the
company is wholly owned by its shareholders.
• When a company is founded, it often progresses and develops and often to
expand, it requires financial help. The company can opt to borrow funds from the
bank and pay interest like a loan or they can opt to raise funds by becoming a
listed company on the share market. There are many Rules and Regulations that a
company must abide by and comply with, if they wish to list and issue securities
on the New Zealand Stock Exchange. These Rules are administered and enforced
by an independent Market Surveillance Panel. Once a Company has become a
Listed Company on the NZX, it can raise funds by offering shares in return for
'cash'. A share of ownership is what the investor gets in exchange for their
financial support.
• Once the shares are listed on the market, they can be bought and sold among
investors in what is called the secondary market. It is this secondary market which
attracts the most attention and is where most of the share transactions take place.
• When shares are purchased, the ownership of a share entitles the share holder to
vote on company matters in proportion to their share holding and they are also
entitled to a share of the profits distributed by the issuer in the form of dividends

National Stock Exchange (NSE)

With the liberalization of the Indian economy, it was found inevitable to lift the Indian
stock market trading system on par with the international standards. On the basis of the
recommendations of high powered Pherwani Committee, the National Stock Exchange
was incorporated in 1992 by Industrial Development Bank of India, Industrial Credit and
Investment Corporation of India, Industrial Finance Corporation of India, all Insurance
Corporations, selected commercial banks and others.

Trading at NSE can be classified under two broad categories:

(a) Wholesale debt market and

(b) Capital market.

Wholesale debt market operations are similar to money market operations - institutions
and corporate bodies enter into high value transactions in financial instruments such as
government securities, treasury bills, public sector unit bonds, commercial paper,
certificate of deposit, etc.

There are two kinds of players in NSE:

(a) trading members and

(b) participants.

Recognized members of NSE are called trading members who trade on behalf of
themselves and their clients. Participants include trading members and large players like
banks who take direct settlement responsibility.

Trading at NSE takes place through a fully automated screen-based trading mechanism
which adopts the principle of an order-driven market. Trading members can stay at their
offices and execute the trading, since they are linked through a communication network.
The prices at which the buyer and seller are willing to transact will appear on the screen.
When the prices match the transaction will be completed and a confirmation slip will be
printed at the office of the trading member.
NSE has several advantages over the traditional trading exchanges. They are as follows:

• NSE brings an integrated stock market trading network across the nation.

• Investors can trade at the same price from anywhere in the country since inter-
market operations are streamlined coupled with the countrywide access to the
securities.

• Delays in communication, late payments and the malpractice’s prevailing in the

traditional trading mechanism can be done away with greater operational
efficiency and informational transparency in the stock market operations, with the
support of total computerized network.

Unless stock markets provide professionalized service, small investors and foreign
investors will not be interested in capital market operations. And capital market being one
of the major sources of long-term finance for industrial projects, India cannot afford to
damage the capital market path. In this regard NSE gains vital importance in the Indian
capital market system.

Bombay Stock Exchange (BSE)

Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich
heritage. Popularly known as "BSE", it was established as "The Native Share & Stock
Brokers Association" in 1875. It is the first stock exchange in the country to obtain
permanent recognition in 1956 from the Government of India under the Securities
Contracts (Regulation) Act, 1956.The Exchange's pivotal and pre-eminent role in the
development of the Indian capital market is widely recognized and its index, SENSEX, is
tracked worldwide. Earlier an Association of Persons (AOP), the Exchange is now a
demutualised and corporatised entity incorporated under the provisions of the Companies
Act, 1956, pursuant to the BSE(Corporatisation and Demutualisation) Scheme, 2005
notified by the Securities and Exchange Board of India (SEBI).

With demutualisation, the trading rights and ownership rights have been de-linked
effectively addressing concerns regarding perceived and real conflicts of interest. The
Exchange is professionally managed under the overall direction of the Board of
Directors. The Board comprises eminent professionals, representatives of Trading
Members and the Managing Director of the Exchange. The Board is inclusive and is
designed to benefit from the participation of market intermediaries.

In terms of organization structure, the Board formulates larger policy issues and exercises
over-all control. The committees constituted by the Board are broad-based. The day-to-
day operations of the Exchange are managed by the Managing Director and a
management team of professionals.

The Exchange has a nation-wide reach with a presence in 417 cities and towns of India.
The systems and processes of the Exchange are designed to safeguard market integrity
and enhance transparency in operations. During the year 2004-2005, the trading volumes
on the Exchange showed robust growth.

The Exchange provides an efficient and transparent market for trading in equity, debt
instruments and derivatives. The BSE's On Line Trading System (BOLT) is a proprietary
system of the Exchange and is BS 7799-2-2002 certified. The surveillance and clearing &
settlement functions of the Exchange are ISO 9001:2000 certified.
Reliance money was official launched in April 2007. It is a distribution house of reliance
capital which is a part of Anil Dhirubhai Ambani Group (ADA). So first of all I will
discuss about the
structure of Anil Dhirubhai Ambani Group.
 Communic
ation

Infrastructu
Power
re

ADA
GROUP

Media and
Financial
Entertainm
Services
ent

Natural
Resources
Reliance ADA Group is one year old and one of the top three business groups. This
group has
over 50 million customers in all over world and 8 million individual shareholders which
is largest in the world. The assets of group is over 12 billion dollars and net worth of over
10
billion dollars. Group market capitalization of 33 billion dollars over 6 billion dollars
owend by
Foreign investors. The group is committed to maximize the shareholders value by
entrepreneurial mindset, ownership and commitment, speed and execution, integrity,
respect and
dignity and pride and passion.

In ADA group Reliance Capital deals with financial services. Reliance capital
provides services in Mutual funds, Insurance, Consumer Finance, Money changing and
money
transfer and Reliance Money.

Reliance capital

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Conditions apply.
 CHAPTER-2

REVIEW

OF

LITERATURE

RESEARCH METHEDOLOGY Objective of research;

 1
2  T he main objective of this project is concerned with getting the opinion of
people regarding Mutual Funds and Life Insurance , to target them and create
awareness while with the generation of leads.
3
4 I have tried to explore the general opinion about Mutual Funds and Life
Insurance. It also covers why/ why not investors are availing the services of
financial advisors.
5
6 Along with it a brief introduction to India’s largest financial intermediary,
RELIANCE MONEY has been given and it is shown that what are mutual funds
and life insurance and how they work

Scope of the study: The research was carried on in the Southern Region of India. It is
restricted to Hyderabad. I have visited people randomly nearby my locality, different
shopping malls, small retailers etc
.
Data sources: Research is totally based on primary data. Secondary data can be used
only for the reference. Research has been done by primary data collection, and primary
data has been collected by interacting with various people. The secondary data has been
collected through various journals and websites and some special publications of R-
MONEY.
The scope of the study refers to the job that to know about the activities of the
organization. The study means that the analysis of the products of the company on which
he/she has to focus. During the MSP days the volunteer need to find out the corporate
strategies of the running company and the mile stone which the company has covered
during its journey. In the summer training, it is necessary for the student that he /she
involve with the experience guys to get the knowledge about the company. That is how
the company has got the success, Or if it is going in the loss, why. During this MSP
period I have found that the reliance group is the biggest group in Indian companies. I felt
that I can learn the more in the Reliance Money and Reliance Mutual Fund. Reliance
Money and Reliance Mutual fund is the part of the Reliance Capital Limited which is a
growing company in the financial products. Reliance Anil Dhirubhai Ambani group is
also deals in communication, energy, natural resources, media, and entertainment,
healthcare and infrastructure

Sampling
 procedure:

The sample is selected in a random way, irrespective of them being investor or not or
availing the services or not. It was collected through mails and personal visits to the
known persons, by formal and informal talks and through filling up the questionnaire
prepared. The data has been analyzed by using the measures of central tendencies like
Mean, median, mode. The group has been selected and the analysis has been done on the
basis statistical tools available.
1
Sample
 size:
The sample size of my project is limited to 200 only. Out of which only 135 people
attempted all the questions. Other 65 not investing in MFs and don’t have a Life
Insurance policy attempted only 2 questions.
1
2
Sample
 design:
Data has been presented with the help of bar graph, pie charts, line graphs etc.
Hypothesis:

H0: Targeting and Positioning Strategy based on investment in Mutual Fund and Life
Insurances is significant.

Investors often enter the equity market without understanding the risks. Such investment
carries systemic risks, irrespective of whether one opts for direct exposure or through
mutual funds. Here is a way to evaluate such risk.

To achieve financial goals, the first evaluation is the risk-taking capacity of the
individual. People tend to take higher risks early in their career. Later on their risk-taking
abilities are limited due to the lesser number of earning years.

The fewer earning years ahead limits the latter’s risk-taking ability even if the individual
is very keen to achieve investment goals.

If individuals are unable to understand and assess their risk appetite, it may not be wise to
hold risky assets such as equity.

Risk perception: Let us say that the risk perception of investors vary between 1 and 100
per cent. For someone in his 20s, equity may mean losing as much as 40 per cent of
investments, while for his father, a 10 per cent decline could mean a high-risk strategy.
This perception arises from one’s ability to tolerate risk.

Another key issue in which investors often falter is the nature of funds. Take the example
of an investor who made his money in the derivatives market in 2007; this prompted him
to use his father’s retirement corpus (earmarked for the investor’s sister’s wedding) in a
high beta mutual fund, which fell by over 50 per cent in a downturn.

Two lessons emerge from this case: one, funds with a crucial financial goal in the near
future cannot be exposed to market vagaries. Two, transfer of risk to a younger person
does not automatically mitigate the risk of investing in equity.
The final step of evaluation is risk tolerance. If you cannot stomach losing money don’t
barge into the equity market. If you are ready to lose at least 20-30 per cent, then you can
consider mutual funds.

Risk tolerance: We come across advisors recommending MIPs to retired people as part of
portfolio diversification. The advisor might know the risk profile of the investment but
investor understands the risk only when he losses money.

To understand how it is possible to lose money without understanding the risk tolerance,
we analysed the performance of monthly income plans (which invest about 80 per cent of
the money in debt schemes and rest in equity).

The perception among individuals is that monthly income schemes declare dividends
every month. Some investors enquire during market downturns why their MIPs are not
declaring dividends. For instance, if an individual had invested in an MIP in January
2008, the one-year category average return of the scheme would have been minus 8 per
cent.

The disparity between the best in the category and the worst was wide. The best
generated a 20 per cent return in one year ending January 2009 while the worst lost 12
per cent. If you had invested in the scheme without understanding your risk tolerance and
sold the units in loss in panic, your tolerance for risk was low.

Had the person stayed invested during the market correction, the fund would have once
again moved to positive territory.

For instance if you look at a one-year period ending September 29, the best performing
Reliance Monthly Income Plan generated a return of 30 per cent while, for the same
period FT India Monthly Plan (Bonus) lost 3.5 per cent.

This shows that before investing one has to evaluate the risk-taking capacity, perception
and tolerance towards risk to accumulate money in an asset class such as equity
SECURITIES AND EXCHANGE BOARD OF INDIA

Major part of the liberalization process was the repeal of the Capital Issues (control) Act,
1947, in May 1992. With this, Government’s control over issues of capital, pricing of the
issues, fixing of premia and rates of interest on debentures etc. ceased, and the office
which administered the Act was abolished: the market was allowed to allocate resources
to competing uses. However, to ensure effective regulation of the market, SEBI Act,
1992 was enacted to establish SEBI with statutory powers for:-
• Protecting the interests of investors in securities.
• Promoting the development of the securities market, and
• Regulating the securities market
Its regulatory jurisdiction extends over corporate in the issuance of capital and
transfer of securities, in addition to all intermediaries and person associated with
securities market. SEBI can specify the matters to be discloser and the standards of
disclosure required for the protection of investors in respect of issues; can issue
directions to all intermediaries and other person associated with the securities market
in the interest of investors or of orderly development of securities market and can
conduct enquiries, audits and inspections of all concern and adjudicate offences
under the Act. In short, it has been given necessary autonomy and authority to
regulate and develop an orderly securities market. All the intermediaries in the
market, such as brokers and sub brokers, underwriters, merchant bankers, bankers to
the issue, share transfer agents and registrars to the issue , are now required to register
with SEBI and are governed by its regulations. A code of conduct of each
intermediary has been prescribed in the regulations; capital adequacy and other norms
have been specified; a system of monitoring and inspecting their operations has been
instituted to enforce compliance; and disciplinary actions are being taken against the
intermediaries violating any regulation.
FUNCTIONS OF SEBI

SEBI has been obligated to protect the interests of the investors n securities and to
promote and development of, and to regulate the securities market by such measures
as it thinks fit.
SEBI, in particular, has power for:-
(a) Regulating the business in stock exchanges and other securities markets
(b) Registering and regulating the working of stock brokers, sub brokers, share
transfer agents, bankers to an issue, trustees of trust deeds, registrars to an issue,
merchant bankers, underwriters, portfolio managers, investment advisers and such
other intermediaries who may be associated with securities markets in any
manner;
(c) Registering and regulating the working of depositories, participants, custodians of
securities, foreign institutional investors, credit rating agencies and such other
intermediaries as SEBI may, by notification, specify in this behalf;
(d) Registering and regulating the working of venture capital funds and collective
investment schemes including mutual funds;
(e) Promoting and regulating self regulatory organizations;
(f) Prohibiting fraudulent and unfair trade practices relating to securities market;
(g) Promoting investor’s education and training of intermediaries of securities
markets;
(h) Prohibiting insider trading in securities;
(i) Regulating substantial acquisition of shares and take over of companies;
(j) Calling for information from, undertaking inspection, conducting inquiries and
audits of the stock exchanges, mutual funds and other persons associated with the
securities market and self regulatory organizations in the securities market;
(k) Performing such functions and exercising according to securities contracts
(Regulation) Act, 1956, as may be delegated to it by the Central Government;
(l) Levying fees or other charges for carrying out the purpose of this section;
(m)Conducting research for the above purpose.
 (n) Calling from or furnishing to any such agencies, as may be specified by SEBI,
such information as may be considered necessary by it for the efficient discharge
of its functions.

A number of studies on the identification of training needs in India are available.For

training activity to be meaningful a detailed study of jobs and skilled analysis is
absolutely necessary.The training thus imparted would help employees to adjust to their
job requirements .

There is a shift seen from knowledge to attitude as the main objective of training .There
are mainly three areas of training – technical skills,and conceptual and interpersonal
skills .The worker training should focus on technical skills and knowledge followed by
conceptual and interpersonal skills,and knowledge of organization and other systems

In the case of supervisors, conceptual and interpersonal skills should be emphasized

followed by technical skills and knowledge knowledge of organization and external
environment.As far as the managers are concerned ,the sequence is same as that for
supervisor s except that the order of knowledge of organization and external
environment and technical skills is interchanged.

The quality of employees and their development through training and education are major
factors in determining long –term profitability of a small business.If you hire and keep
good employees,it is good policy to invest in the development of their skills ,so they can
increase their productivity.
Purpose of training and development

Reasons for emphasizing the growth and development of personnel include

• Creating a pool of readily available and adequate replacements for personnel who
may leave or move up in the organization.
• Enhancing the company’s ability to adopt and use advances in technology
because of sufficiently knowledgeable staff.
• Building an more efficient ,effective and highly motivated team, which enhances
the company’s competitive position and improves employee morale.Ensuring
adequate human resources for expansion into new programs .
CHAPTER-3

COMPANY

PROFILE
Company Profile

Reliance Money, a Reliance Capital company and part of the Reliance

Anil Dhirubhai Ambani Group is a comprehensive financial services
and solution provider. It is a one-stop-shop, providing end-to-end
financial solutions (including mobile and web-based services). It has
the largest non-banking distribution channel with over 10,000 outlets
and 20,000 touchpoints spread across 5,165 cities/ towns; catering to
the diverse needs of over 3 million existing customers.

Reliance Money endeavors to change the way investors transact in

financial markets and avails financial services. It provides customers
with access to Equity, Equity and Commodity Derivatives, Offshore
Investments, Portfolio Management Services, Wealth Management
Services, Investment Banking, Mutual Funds, IPOs, Life and General
Insurance products and Gold Coins. Customers can also avail Loans,
Credit Card, Money Transfer and Money Changing services
In ADA group Reliance Capital deals with financial services. Reliance capital
provides services in Mutual funds, Insurance, Consumer Finance, Money changing and
money transfer and Reliance Money.

Mr.. Amitabh Jhunjhunwala Mr. Rajendra Chitale Mr. C. P.

Jain (Vice Chareman) (Independent Director) (ManagingDirector)
RCL is registered as a depository participant with National Securities Depository Ltd
(NSDL) and Central Depository Services Ltd (CDSL) under the Securities and Exchange
Board of India (Depositories and Participants) Regulations, 1996. RCL has sponsored
the Reliance Mutual Fund within the framework of the Securities and Exchange Board of
India (Mutual Fund) Regulations, 1996.RCL primarily focuses on funding projects in the
infrastructure sector and supports the growth of its subsidiary companies, Reliance
Capital Asset Management Limited, Reliance Capital Trustee Co. Limited, Reliance
General Insurance
Reliance Money is a group company of Reliance Capital; one of India's leading and
fastest growing private sector financial services companies, ranking among the top 3
private sector financial services and banking companies, in terms of net worth. Reliance
Capital is a part of the Reliance Anil Dhirubhai Ambani Group. Reliance Money has
officially commenced operations in April 2007. The managing director of the company is
Mr. Sudeep Bandhopadhyay. Total distribution network of 2270 outlets across the
country. Reliance Money is a comprehensive electronic transaction platform offering a
wide range of asset classes. Its endeavour is to change the way India transacts in
financial markets and avails financial services. Reliance Money is a single window,
enabling you to access, amongst others in Equities, Equity & Commodities Derivatives,
Mutual Funds, IPOs, Life & General Insurance products, Offshore Investments, Money
Transfer, Money Changing and Credit Cards.

Code of conduct

Reliance Money is a distribution house of Reliance Capital Ltd. so the code of conduct is
as Reliance Capital. Reliance Capital Ltd.'s Code of Ethics is in alignment with its values
and commitments. The essence of this code is that each employee should conduct the
Company's business in a way that upholds its values and commitments. This code expects
every employee to conduct business with integrity, in compliance with applicable laws,
and in a manner that excludes consideration of direct or indirect personaladvantage /
gains. It is the individual responsibility of each one of Reliance Capital Ltd.'s employees
to ensure that all of us are aware of these values, commitments, and procedures, and
behave in accordance with the spirit as well as the letter of this code. Reliance Capital
Ltd. recognizes that it is vital that the behaviour of its employees matches the high
intentions and values. Hence, adherence to all the elements of this code and the
accompanying principles and procedures is necessary. The principles and procedures in this
Code of Ethics apply to all material transactions, large or small, and describe the conduct
expected of every Reliance Capital Ltd. employee.
 Our DNA

 Entrepreneurial mindset
 Ownership and commitment
 Speed and execution
 Integrity
 Respect and dignity
 Pride and passion

Integrated approach
Go to market as one! Go to customer as one!
PRODUCT PORTFOLIO OF RELIANCE MONEY
 Reliance Money

Life and
Equity
General Insurance

Derivatives Mutual Funds

Commodity IPO

Money Transfer Money Changing

Gold Credit Cards

EQUITY : Investing in equity involves purchasing shares of a company listed on a
stock exchange. You can acquire these shares in two ways - either through the Primary
Market, i.e., when a company makes an offer to issue its equity for the first time (this is
called Initial Public Offering (IPO)) or through the secondary market, i.e. via a stock
exchange. When you trade in equity through a stock exchange, you have to make use of
the services of a brokerage firm, which acts as your agent whenever you buy or sell.
Equity is considered a high risk-high return investment avenue. This is because there is
scope for considerable appreciation or loss of the capital that you invest, depending on
various factors such as the performance of the company that you have invested in,
general market conditions, the state of the economy, etc. However, it forms an integral
part of any well-balanced portfolio, since it is at one end of the risk-return spectrum.

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

There are various risks that companies are exposed to and when you invest in equity,
your returns are affected by these risks. These are business risks (i.e. the risks associated
with the prosperity of a business and the demand for its products), financial risks (the
skill with which a company’s finances are managed to ensure that it has an optimum level
of debt, equity, reserves, etc.), industry risk (changes in technology, regulations, fashions,
etc., affect the performance of an industry), management risks (the level of corporate
governance, management skills and vision), political, economic and exchange rate risks
(these factors affect a company but are outside its control). There are other risks, such as
market risks (the risk that the market will collapse, or that you have invested at the peak),
which determine your returns on your equity
investment.
The timing of trading in commodity market is

COMMODITY: Commodities have occupied a large space in our life. The

commodity market is one of the oldest prevailing market in the human history. Trading in
commodity market is just like buying and selling shares of a company. In our country
there are three most prominent commodity exchanges MCX, NCDEX and NMCE.
Futures market in commodity is a continuous auction market where buyers and sellers
meet to trade on futures contract of specific underlying commodity. Futures contract is
legally obligatory. Delivery period, quantity and quality of a contract are standard.
Buyers and sellers negotiate through an exchange to set a price. A future trading is
trading of futures contract. The buyer of futures contract has a right to purchase the
commodity of same quality, quantity in specified time from the seller of the contract.
Banks, Mutual funds, FIIs, and NRIs are not allowed to trade.
The timing of trading in commodity market is
• Monday to Friday 10 am – 5 pm for agro-based commodities
• Monday to Friday 10 am – 11.30 pm for precious / base metals and energy
• Saturdays 10 am – 2 pm all commodities

DERIVATIVES: The term derivative refers to an asset that has no independent value,
bu derives its value from that of an underlying asset. Te underlying asset could be
securities, commodities, bullion, currency, livestock or anything else. Trading in
derivatives allows us to speculate, hedge, undertake arbitrage activities and buy on
margin.
There are broadly 2 types of derivatives futures and options. Futures are that derivative
contracts that require you to sell or buy a specified quantity of the underlying asset on a
specified date (expiration date) at the spot price of the underlying asset prevailing on the
expiration date. Futures can have a validity of 1 month, 2 months or 3 months. These
contracts do not have a strike price.
An option is a type of derivative contract that gives the buyer the right (but not the
obligation or the liability), to buy or sell a specified quantity of the underlying asset (in
this case, stocks or an index) at an agreed price (strike/exercise price) on or before the
specified future date (expiration date). You can purchase an option for a price called
premium.

OFF SHORE INVESTMENTS: for the first time in the history or India, traders now
have a new world of off-shore investment opportunities. The product suite being
discussed include contracts replicating the returns from US and UK equities, global
indices, bullion, crude and metals traded on commodity exchanges across the globe, and
forex. Foreign Exchange is the trading of one currency against another.
Professionals refer to this as foreign exchange, or use the acronyms Forex or FX. The
financial asset constituting Forex are “currency-pairs” like Euro and US Dollar, or US
Dollar and Japanese Yen, and so on.
(In the same way as Scripts constitute the Stock Market)
Forex Trade takes place in “Forex Market” which is chiefly an Over-The-Counter
market, meaning that transactions are conducted between any two counter parties that
agree to trade via the telephone or electronic network. Ideally there would be an entity
providing the structure which makes the trading possible, such entities are called
“Market-maker”. Market Makers assume the role of counterparty in all trades that happen
through their clients.
(The Market-maker in Forex Market may be compared to the Stock Exchanges in the
case of Equity Market)

IPO’S: Initial Public Offering, IPO, is when an unlisted company makes either a fresh
issue of securities or an offer for sale of its existing securities or both for the first time to
the public. In which peoples bid for shares and wait till the company listed in the stock
exchange. After listing the can sell those shares at higher price and earn the profit.
MUTUAL FUNDS:
 Largest customer base in private sector mutual funds with 3.5 million customer.
 Largest assets under management amongst Indian mutual funds with current
AUM in excess of Rs. 500 billion.
 Largest in new fund offering in 44 year old Indian mutual fund history- collected
over 57 billion from 900000 investor.
 Only 100% owned Indian private sector mutual fund company.
 28 schemes-equity, fixed income and money market.
 123 branches at the end of FY07
 LIFE INSURENCE: Acquired AMP Sanmar in October 2005 Renamed
“Reliance Life
Insurance”

 32 products – 26 Individual products and 6 group products

 2 schemes during FY07, Reliance Connect 2 Life Plan and Reliance Money
Guarantee Plan
 Only 100% Indian owned life insurance company amongst the top 5 private
sector players
 Only 2nd life insurance company in India to receive ISO certification
 217 branches. IRDA approval for starting another 130 branches
 Gross Premium for FY07: Rs.10 billion

GENERAL INSURENCE: Offers home insurance, property insurance, auto

insurance, travel insurance, marine insurance, commercial insurance and other specialty
insurance products.
  Customer base ranges across sectors – ports, steel, power plants etc.
 Only 100% Indian private sector insurance company
 Strong reinsurance network – GIC, Scor Re, Allianz, Mitsui Sumitomo, Helvetia.
 March 31, 2007 - 85 branches
 Over 1.5 million policies

TRADING SYSTEM

The Exchange, as stated earlier, had an open outcry trading system till March 1995 where
member-brokers used to assemble in a trading ring for doing transactions in securities. It
had switched over to a fully automated computerized mode of trading known as BOLT
(BSE on Line Trading) System w.e.f. March 14, 1995. Through the BOLT system, the
member-brokers now enter orders for purchase or sell of securities from Trader Work
Stations (TWSs) installed in their offices instead of assembling in the trading ring. This
system, which was initially both order and quote driven, is currently only order driven.
The system, which is now only order driven, facilitates more efficient inputting,
processing, automatic matching and faster execution of orders in a transparent manner.

The trading in securities at the Exchange is conducted in an anonymous environment and

the counterparty identity is not revealed. The buyers and sellers of securities do not know
the names of each other.

The member-brokers of the Exchange were permitted to open trading terminals only
within the city limits of Mumbai till 1996. The Exchange obtained permission from SEBI
for expansion of its BOLT network to locations outside Mumbai. The expansion of
BOLT network to cities outside Mumbai was inaugurated by Shri P. Chidambaram, the
Finance Minister, Government of India on August 31, 1997. The Exchange was initially
allowed by SEBI to set up trading terminals in all places except in the jurisdictional areas
of other Regional Stock Exchange. For setting up trading terminals in the jurisdictional
areas of other Regional Stock Exchange, the exchange was required to enter into
Memorandum of Understanding (MOU) with the respective Stock Exchange.

However, with certain modifications in this regard announced by SEBI towards the end
of the year 1999, the member-brokers of the Exchange are now free to install their trading
terminals at any place in the country including in the jurisdictional areas of other
Regional Stock Exchanges. In order to expand the reach of BOLT network to centers
outside Mumbai, to reach out to investors in these centers and provide them access to the
trading facilities in all scripts listed and permitted to be traded on the Exchange and to
support the smaller Regional Stock Exchanges, the Exchange has admitted subsidiary
companies formed by 15 Regional Stock Exchanges as its member-brokers as on June 30,
2003. The member-brokers of these Regional Stock Exchange work as sub-brokers of the
member-brokers of the Exchange.

Trading on the BOLT System is conducted fro Monday to Friday between 9:55 a.m. and
3:30 p.m. The scripts traded on the Exchange have been classified into ‘A’, ‘B1’, ‘B2’,
‘F’, ‘G’ and ‘Z’ groups. The Exchange has for the guidance and benefit of investors
classified the scripts in the Equity Segment in ‘A’, ‘B1’, & ‘B2’ based on certain
qualitative and quantitative parameters which include number of trades, value traded, etc.
for the guidance and benefit of investors.

The ‘F’ group represents the fixed income securities wherein 730 securities securities
were listed as on June 30, 2003. The Exchange has commenced trading in Govt.
Securities for retail investors under “G” group w.e.f. January 16, 2003 and 85 Govt.
Securities are traded on the Exchange under this group as on June 30, 2003.

The ‘Z’ group was introduced by the Exchange in July 1999 and includes the companies
which have failed to comply with the listing requirements of the Exchange and / or have
failed to resolve investor complaints or have not made the required arrangements with
both the Depositories, viz., Central Depository Services (I) Ltd. (CDSL) and National
Securities Depository Ltd. (NSDL) for dematerialization of their securities. Companies n
“Z” group numbered 2776 as on June30, 2003. of these, 1275 companies were in “Z”
group for not complying with the provisions of the listing agreement and not resolving
pending investor complaints and the balance 1501 companies were on account of not
making arrangements for dematerialization of their securities . Once they finalize he
arrangements for dematerialization of their securities, trading and settlement in their
scripts would be shifted to their respective rest groups.

NEED OF A DEMAT ACCOUNT

With SEBI making trading mandatory on more than 700 scripts, it is imperative that all
investors have Demat Account with a Depository Participants. This is because most
trades get settled electronically at the stock exchange. When you place a buy order, a
seller can deliver the Demat securities, which can only be credited to Demat account.

The advantages of having Demat account is as follow

1. No space required to keep the shares.
2. No exclusive manpower is required.
3. No insurance required.
4. Periodic statement of holding is made available by the DP’s easy verification of
audits.
5. Custody charges vary from 3 to 10 % basis paints depending upon DP selected .
6. No risk of theft / forgery.
7. Pledging is sage and easy.
8. Faster and hassle free receipt of corporate benefits.
9. Convenient portfolio shuffling and adjustment with in the group since delivery is
through a single instrument, registration, instantaneous and cost less.
 10. Transaction charges vary from Nil to 10 basis.
11. No market lot concepts.
12. No need to split.
13. Facility for off market transactions, especially within the groups.
14. Flexibility to put future dated delivery receipt instruction helps in better time
management. Delivery is in the form of a single instruction.
15. No postage and handling charges.
16. immediate transfer therefore no opportunity cost.
17. Transaction charges vary from 7 to 10.

TRADING WITH RELIANCE MONEY

Reliance money is a most comprehensive website which allows you to

invest in share mutual funds and derivatives (Future and option) and other financial
products. With reliance money one can trade in shares / investment in a completely hassle
free and paperless manner. It comes with a unique 3- in – 1 account that integrates your
bank, demat and brokering/ investment accounts. Reliance offers a wide choice of
products for investing in the stock market. It also allows you to invest in shares, mutual
funds and other financial products. Simply Reliance offers a product for almost every
investment need and that too at and on simple basis. Reliance money comes from
Reliance Anil Dhirubhai Ambani Group, the organization trusted by millions if Indian. It
is a growing share trading site in India. It is the pioneer in online trading today with the
uniqur features as mentioned below.

 Access digitally signed contract notes online

 Put in your trade through telephone from over cities in India
 Track movements on your mobile.
 Monitor your portfolio online
 Expert’s opinion about sensex and particular script.
Share trading in Reliance money is very easy and user friendly. A person can trade
through 4 ways.

1. ONLINE In online trading investor need to go to

reliancemoney.com then he put his user name, password and security key code to
enter in his account. After entering in his account he can trade in Equity and
Derivatives.
2. FRANCHISEE In offline trading a investor can trade through franchisee.
There are two ways to trade with franchisee. First investor can make a call to
franchisee and do trade, second he can go and work there.

3. KIOSK Company is providing a kiosk facility to the investor in which he can

trade over kiosk which are placed at various places like Reliance web world,
Reliance money office, Some big malls and public places. This is standing
computer with internet facility. A investor can login through this and can trade.
4. CALL CENTRE Reliance money provide call and trade facility to the
investor. A investor can trade by making a call on 3986000. Which charge a local
call rate. Now a investor can trade from any place.
Trading in shares

Reliance money offers you various options while trading in shares.

1. Cash trading
When you decide to invest part of your savings into shares of a company, you do what is
called Cash Trading. Cash trading can also be termed as delivery based trading. Reliance
money ltd. is the place where you are in complete control. All you have to do is login to
your account and place your order at the desired price. After order execution, the shares
and money would automatically be debited/credited into your Demat/bank account.

2. Margin Trading
Margin trading at Reliance money refers to intraday trading upto 5 times. If you intend to
take advantage of the intraday price fluctuation by buying/selling the shares and then
covering the position on the same day, this product would suit your requirement.

3. Stop-Loss Trading
Margin plus is a unique offering of Reliance money ltd. this is ideal for customers who
require very high leverage to do intraday trading. In Margin plus you have to specify a
stop loss order at the time of taking your position. Due to this your risk is now limited
only to the extent of your stop loss price.
 4. Spot Trading
Cash on spot is another unique feature offering from Reliance money ltd. if you sell the
shares, you can credited the money into your saving account but the saving account
should be in the one of these bank HDFC, IDBI and UTI.

5. ATST
Accrued today sell tomorrow (ATST) is a facility that allows you to sell shares even on
1st and 2nd day after the buy order date, without you having to wait for the receipt of
shares into your Demat account.

6. Portfolio management
Portfolio management allows you to make the different types of portfolio regarding the
various sectors. You can set you portfolio according to your convenience.

7. Market Order
You can trade by placing market orders during market hours that allows you to trade at
the best obtainable price in the market at the time of execution of the order.

8. Limit Order
Allows you to place a buy/sell order at a price defined by you, the execution can happen
at a price more favorable than the price, which is defined by you during holidays & non
market hours too.
TRADE IN DERIVATIVES

FUTURE

Through Reliance Money, you can bow trade in index and stock futures on the NSE. In
futures trading, you take buy/sell positions in index or stock contracts having a longer
contract period of up to 3 months.
Trading in future is simple , If , during the course of the contract life, the price moves in
your favor (i.e. rises in case you have to buy position or falls in case you have a sell
position), make a profit.
Presently only selected stocks, which meet the criteria on liquidity and volume , have
been enabled for futures. Calculate Index and know your Margin are tools to help you in
calculating your margin requirements and also the index and stock price movements.

OPTIONS

To take the buy/sell position on index/ stock options, you have to place certain % of order
value as margin. With options trading, you can leverage on your trading limit by taking
buy/sell positions much more than what you could have taken in cash segment.
The buyer of a Call option has the right but not the obligation to purchase the underlying
asset at the specified strike price by paying premium whereas the seller of the call has
the obligation of selling the underlying asset at the specified strike price.
The buyer of a put option has the ritht but not obligation to sell the under
 CHAPTER-4

DATA ANALYSIS

AND

INTERPRETATION
ANALYSIS

India Bulls- India Bulls is not providing these product,s

• IPO(online)
• MF
• Small Savings
• Insurance
• GOI Bonds
• 3-in-1 Account

HDFC Securities- HDFC Securities is not providing these

product,s

• BTST
• SPOT
• Commodities
• MF(online)
• Small Savings
• Insurance
• GOI Bonds
• 3-in-1 Account

KotakStreet - KotakStreet is not providing these product,s

• Funded Margin
• Derivatives
• Small Savings
• Insurance
• 3-in-1 Account
Sharekhan – Sharekhan is not providing these product,s

• SPOT
• Funded Margin
• Commodities
• IPO(online)
• MF(online)
• Small Savings
• Insurance
• GOI Bonds
• 3-in-1 Account

SWOT ANALYSIS

STRENGTHS

• Linking of all three accounts i.e. saving accounts (HDFC, IDBI and UTI Bank’s),
Demat account and trading account.
• Trading in NSE, BSE, NCDEX and OFFSHORE
• Invester can also invest in Mutual fund, Life and General Insurance.
• Account protected through security key
• Web base trading system
• No need of pool account
 • Less brokerage in intraday and delivery
• No service tax on brokerage

WEAKNESSES

• High Charges for the off line traders who trade in low volume.
• Do not have access on regional Exchange.
• Server down.
• No credit facility
• Higher demat opening charge

OPPORTUNITIES

• First time introduced prepaid brokerage in India.

• Already having a good market access through different products of RELIANCE
LTD.
• Due to fall in saving and fixed deposit rate of interest, investor likes to invest in
stock market with minimum charges.
• Providing the facility of investing money in mutual funds.

THREATS

• Higher offline brokerage as compare to other brokering houses.

• Customer using online fund transfer facility must maintain Rs 5000 in his bank
saving account in one of these banks HDFC, IDBI and UTI.
Funding facility provided by other brokerage houses.

Categorization of sample according to their monthly income

12% 8%

44% 36%

Less then 15000 from 15000-25000 from 25000-40000 more then 40000

Categorization of sample according to their Age Group

 33%

48%

19%
0%

18-30 31-45 45-60 60&above

1. You are trading in stock exchange since

20%

16%

40%
24%

less then 1 yr from 1-5 yrs from 5-10 yrs more then 10 yrs

hesitate while taking some decision then so he consult to the broker and friends.
In the sample first we calculate the experience of a investor in Stock Market. Which is a
important factor while trading. Researcher divided experience into four parts less then 1
year, from 1 – 5 years, from 5 – 10 years and more then 10 years. By dividing the whole
study into four groups, it is easy for researcher to understand the behaviour of a investor.

If a investor is new in the market then he will consult to his friends, broker or any other
before taking any decision and avail minimum risk. On the other side when he is having a
good experience he believe in himself and take decisions on his own. Investor having
experience from 1-5 year are chose both ways because some time they feel

2. How do you trade in stock exchange

30%

18%

52%

online off line Both

In the survey 52% people works off line, 18% online and 30% uses both. This factor is
affected by many thing like their working experience. This is also affected by the
occupation of the investor. If a investor’s occupation is a service then he can only trade
offline. Those investor who do not know how to operate computers or they are not having
Internet connection and Computer at there home and office are bound to trade off line.

Correlation between Age Group and Trading Habits

50
45 9
40
35
30 Both
13
25 29
off line
20 online
8
15 16
10 7
5 10
4 4
0
18-30 31-45 45-60 60&above
 This is to understand investor’s behaviour regarding his age group.
♦ In the above diagram it is understood that there is 18% online traders from which
10% belongs between 18-30 age group, 4% from 31–45 and 4% from 45-60 age
group.
♦ In 52% of offline traders 29% are from 18-30, 16% are from 31-45, and 7% from
45-60.
♦ And in 30% of both traders, who trade like both online and offline, 9% are from
18-30, 13% from 31-45 and 8% from 45-60

So it can be understood the relationship between the trading habit and age group
of the investor

3. Which mode of trade do you prefer

F&O
11%
IPO
Delivery 33%
20%

Intraday
36%
 From the survey conducted by the researcher it is clear that 36% of the investors
trade in Intraday, 20% trade in Delivery, 11% trade in Future & Option and 33%
investors trade in IPO. These trading habits can be affected by their age group and
monthly income. Young traders take risk and try to gain higher returns. And experienced
traders take minimum risk and get good returns. A investor’s monthly income is high can
take more risk then any other. So this is the reason that only rich traders trade in Future
and Option. Investor related to govt. jobs likes to trade in IPO’s because of safety and
good returns.

4. Why do you trade in above

After knowing the mode of trading researcher find out the reasons why consumes
Trade in particular mode.

INTRADAY- The basic motive behind trading in Intraday is to gain high returns. The
risk factor in intra day is also high. Some investor wants good results and they do not
want to stuck their money for a long time. They want quick results. In intra day limit
facility is there in which investor can avail high limit by depositing a initial amount.

DELIVERY- The basic motive behind the trading in Delivery is to get good returns with
less risk. Investors do trade in this for long term investment. In some cases while trading
in Intraday when investor is about to get a loss in a particular stock then he prefer to pick
up the delivery for minimize the risk.
FUTURE & OPTION- Trading in this is full of high risk and high gain. In the whole
survey very less n. of customer trade in this. In this there is a lot of share. A lot can
contain 50, 1000 or more; you need to deposit margin money.

IPO- This is a safest part of trading in stock exchange. In which investor have to bid for
shares, if his bid is accepted he will get the shares, if do not accept then he get his money
return.

5. Who advised you to trade in particular script/stock

Self Broker
59% 20%

Friends
Others
18%
3%
With this question the researcher tries to understand the person who is behind the
decision of investment taking by the investor. In the survey Investor who are having
trading experience from 1-5 ,5-10 and more then 10 years is 76% which means most of
the investors are having good knowledge of share market and here 59% of investor
saying that they take their decision self. 20% investor said that they consult to broker,
18% consults to their friends and relatives, 3% consult to others. Investors come in this
part are generally those who has a less knowledge of share market.

6. Where do you have your Demat account

12%

45% 20%

14%
9%

Anand Rathi Religare Angle Broking India Bulls Any other

 Above chart explain that in which brokerage house investor having their account.
As the researcher surveyed various brokerage houses in which some are local brokers.

7. Which facility or service is best suited to you there

There are some basic reason to have a demat account in a particular brokerage
house. To know these reasons the researcher asked about the best facility at different
brokerage houses. In the survey there are some common facilities which are provided by
the different brokerage houses. Some of the facilities are as follows:

 Credit Policy
 Brokerage
 Funding facility
 Services
 Customer relationship / personal relationship
 Family terms
 Limit
  Margin Money
 Tips

These are some basic facilities which an investor getting. Some of investor said that they
are not getting any special or best facility. They can shift to the new brokerage house
only if they will get the facility there. With this question the researcher shows the
facilities on which basis, company can trace out new investors.

8. While opening a new Demat account which thing affect you most
 27%
33%

28% 12%

Brokerage AMC Credit Policy Any other

The researcher try to find out that which facility investor want when he is going to
open a demat account. The higher % of investor gives preference to the brokerage. Then
credit policy and then any other. In any other option there are many things like cutting
charges, hiding charges, slip charges etc. only 12% investors give preference to the AMC
charges. In some brokerages houses annual maintenance charges is very high.

9. Are you aware about the facilities provided in Demat account by the
Reliance Money
 No
36%

Yes
64%

The researcher tries to find out the awareness among investors regarding the
facilities provided by the Reliance Money. In the results the majority of investors are
aware from the facilities provided by the Reliance money.

10.Would you like to open Demat account in Reliance Money (if no

then why)
 In this question the researcher tries to find out the reasons that why a investor do not
want to open account when knows about the product feature of Reliance Money. This
question can help the company to find out the investor expectation from Reliance Money.
In the responses from the respondent they generally give emphasis on those facilities
which they are getting in their brokerage house.

13%

10%
41%

25%
11%

No need High charges Credit policy Not suited Already opend

The researcher found that 41% of investor said they do not have any need.
25% investor said that reliance money is not providing the credit policy which they are
availing.
Some investor trade in low volume said prepaid system is not suited to them. And offline
traders said that if they do trading in low volume the charges will be high.
 CHAPTER-5

CONCLUSION &

RECOMENDATION

CONCLUSION, FINDING AND SUGGESTION

Categorization of sample according to their monthly income

12% 8%

44% 36%

Less then 15000 from 15000-25000 from 25000-40000 more then 40000

Categorization of sample according to their Age Group

 33%

48%

19%
0%

18-30 31-45 45-60 60&above

1. You are trading in stock exchange since

 20%

16%

40%
24%

less then 1 yr from 1-5 yrs from 5-10 yrs more then 10 yrs

In the sample first we calculate the experience of a investor in Stock Market. Which
is a important factor while trading. Researcher divided experience into four parts
less then 1 year, from 1 – 5 years, from 5 – 10 years and more then 10 years. By
dividing the whole study into four groups, it is easy for researcher to understand the
behaviour of a investor.

If a investor is new in the market then he will consult to his friends, broker or any
other before taking any decision and avail minimum risk. On the other side when he
is having a good experience he believe in himself and take decisions on his own.
Investor having experience from 1-5 year are chose both ways because some time
they feel hesitate while taking some decision then so he consult to the broker and
friends.

2. How do you trade in stock exchange

 30%

18%

52%

online off line Both

3. In the survey 52% people works off line, 18% online and 30% uses both. This
factor is affected by many thing like their working experience. This is also
affected by the occupation of the investor. If a investor’s occupation is a service
then he can only trade offline. Those investor who do not know how to operate
computers or they are not having Internet connection and Computer at there home
and office are bound to trade off line.

Correlation between Age Group and Trading Habits

 50
45 9
40
35
30 Both
13
25 29
off line
20 online
8
15 16
10 7
5 10
4 4
0
18-30 31-45 45-60 60&above

This is to understand investor’s behaviour regarding his age group.

♦ In the above diagram it is understood that there is 18% online traders from which
10% belongs between 18-30 age group, 4% from 31–45 and 4% from 45-60 age
group.
♦ In 52% of offline traders 29% are from 18-30, 16% are from 31-45, and 7% from
45-60.
♦ And in 30% of both traders, who trade like both online and offline, 9% are from
18-30, 13% from 31-45 and 8% from 45-60

So it can be understood the relationship between the trading habit and age group
of the investor.

3Which mode of trade do you prefer

 F&O
11%
IPO
Delivery 33%
20%

Intraday
36%

From the survey conducted by the researcher it is clear that 36% of the investors
trade in Intraday, 20% trade in Delivery, 11% trade in Future & Option and 33%
investors trade in IPO. These trading habits can be affected by their age group and
monthly income. Young traders take risk and try to gain higher returns. And experienced
traders take minimum risk and get good returns. A investor’s monthly income is high can
take more risk then any other. So this is the reason that only rich traders trade in Future
and Option. Investor related to govt. jobs likes to trade in IPO’s because of safety and
good returns.

4 Why do you trade in above

After knowing the mode of trading researcher find out the reasons why consumes
Trade in particular mode.

INTRADAY- The basic motive behind trading in Intraday is to gain high returns. The
risk factor in intra day is also high. Some investor wants good results and they do not
want to stuck their money for a long time. They want quick results. In intra day limit
facility is there in which investor can avail high limit by depositing a initial amount.

DELIVERY- The basic motive behind the trading in Delivery is to get good returns with
less risk. Investors do trade in this for long term investment. In some cases while trading
in Intraday when investor is about to get a loss in a particular stock then he prefer to pick
up the delivery for minimize the risk.

FUTURE & OPTION- Trading in this is full of high risk and high gain. In the whole
survey very less n. of customer trade in this. In this there is a lot of share. A lot can
contain 50, 1000 or more; you need to deposit margin money.

IPO- This is a safest part of trading in stock exchange. In which investor have to bid for
shares, if his bid is accepted he will get the shares, if do not accept then he get his money
return.

5. Who advised you to trade in particular script/stock

 Self Broker
59% 20%

Friends
Others
18%
3%

With this question the researcher tries to understand the person who is behind the
decision of investment taking by the investor. In the survey Investor who are having
trading experience from 1-5 ,5-10 and more then 10 years is 76% which means most of
the investors are having good knowledge of share market and here 59% of investor
saying that they take their decision self. 20% investor said that they consult to broker,
18% consults to their friends and relatives, 3% consult to others. Investors come in this
part are generally those who has a less knowledge of share market.

6. Where do you have your Demat account

 12%

45% 20%

14%
9%

Anand Rathi Religare Angle Broking India Bulls Any other

Above chart explain that in which brokerage house investor having their account.
As the researcher surveyed various brokerage houses in which some are local brokers.

7.Which facility or service is best suited to you there

 There are some basic reason to have a demat account in a particular brokerage
house. To know these reasons the researcher asked about the best facility at different
brokerage houses. In the survey there are some common facilities which are provided by
the different brokerage houses. Some of the facilities are as follows:

 Credit Policy
 Brokerage
 Funding facility
 Services
 Customer relationship / personal relationship
 Family terms
 Limit
 Margin Money
 Tips

These are some basic facilities which an investor getting. Some of investor said that they
are not getting any special or best facility. They can shift to the new brokerage house
only if they will get the facility there. With this question the researcher shows the
facilities on which basis, company can trace out new investors.
 8.While opening a new Demat account which thing affect you most

27%
33%

28% 12%

Brokerage AMC Credit Policy Any other

The researcher try to find out that which facility investor want when he is going to
open a demat account. The higher % of investor gives preference to the brokerage. Then
credit policy and then any other. In any other option there are many things like cutting
charges, hiding charges, slip charges etc. only 12% investors give preference to the AMC
charges. In some brokerages houses annual maintenance charges is very high.
 9.Are you aware about the facilities provided in Demat account by the
Reliance Money

No
36%

Yes
64%

The researcher tries to find out the awareness among investors regarding the
facilities provided by the Reliance Money. In the results the majority of investors are
aware from the facilities provided by the Reliance money.
 10.Would you like to open Demat account in Reliance Money (if no
then why)

In this question the researcher tries to find out the reasons that why a investor do not want
to open account when knows about the product feature of Reliance Money. This question
can help the company to find out the investor expectation from Reliance Money. In the
responses from the respondent they generally give emphasis on those facilities which
they are getting in their brokerage house.

13%

10%
41%

25%
11%

No need High charges Credit policy Not suited Already opend

The researcher found that 41% of investor said they do not have any need. 25% investor
said that reliance money is not providing the credit policy which they are availing.

Some investor trade in low volume said prepaid system is not suited to them. And offline
traders said that if they do trading in low volume the charges will be high.
RECMENDATION

LIMITATION

• High Charges for the off line traders who trade in low volume.
• Do not have access on regional Exchange.
• Server down.
• No credit facility
• Higher demat opening charge
 CHAPTER-6

BIBLIOGRAPHY

BIBLIOGRAPHY
BOOKS:-
 C. R. KOTHARI, RESEARCH METHODOLOGY,2nd ed.,1990
 V. K. BHALLA, INVESTMENT MANAGEMENT,8th ed., S CHAND,
2001
 L. M. BHOLE, FINANCIAL INSTITUTIONS AND MARKET, 3rd ed.,
TATA McGRAW-HILL, 2002
 INVESTMENT, 6th ed., TATA McGRAW-HILL, 2006

MAGAZINES:-
 BUSINESS TODAY
 BUSINESS WORLD

NEWSPAPERS:-
 ECONOMICS TIMES
 TIMES OF INDIA

WEBSITES
 WWW.GOOGLE.COM
 WWW.RELIANCEMONEY.COM
 WWW.ICICIDIRECT.COM
 WWW.NSE.COM
 WWW.MONEYCONTROL.COM
CHAPTER-7
APPENDICES
 APPENDICES

Name: ____________________
Occupation: ____________________ Sex: ____ Age: ____
Phone/Mobile no.: ____________________

1. You are trading in stock exchange since

(1) Less then 1 year (2) 1-5 year (3) 5-10 year (4) more than 10 year

2. How do you trade in stock exchange

(1)online (2)offline (3) both

3. Which mode of trading do you prefer most

(1) Intraday (2) Delivery (3) Future and Option (4) Commodity

4. Where do you have your demat trading account

(1) ANAND RATHI (2) RELIGARE (3) ANGLE BROKING (4)
India bulls (5)ANY OTHER

5. Who advice you to treade in stock exchange

(1) self (2) broker (3)tips (4) Friends

6. While opening a new Demat account which thing affect you most
(1) BROKERAGE (2) AMC (3) CREDIT POLICY (4) ANY OTHER

7.Are you aware about the facilities provided in Demat account by the Reliance
Money
(1) YES
(2) NO
8.Would you like to open Demat account in Reliance Money (if no then why)

In this question the researcher tries to find out the reasons that why a investor do not want
to open account when knows about the product feature of Reliance Money. This question
can help the company to find out the investor expectation from Reliance Money. In the
responses from the respondent they generally give emphasis on those facilities which
they are getting in their brokerage house.

The researcher found that 41% of investor said they do not have any need. 25% investor
said that reliance money is not providing the credit policy which they are availing.

Some investor trade in low volume said prepaid system is not suited to them. And offline
traders said that if they do trading in low volume the charges

9) In which income group you are

i) 0-100000
ii) 100000-150000
iii) 150000-300000
iv) 300000 & above

10) What is your objective to invest in mutual fund?

i) For saving
ii) For capital appreciation
iii) For future security
iv) For saving Tax
v) For all of the above

11) You invest in a year

i) Once
ii) Every month (Regular)
iii) Whenever there is a good fund in the market
iv) Whenever I have extra funds
12) Do you invest in any particular brand like
i) Reliance
ii) Franklin Templeton
iii) HDFC
iv) Any other
v) ___________

13) You invest in mutual fund on which basis

i) Investment manager
ii) Company’s goodwill
iii) Previous returns
iv) Any other reason

14) Which option do you mostly opt for?

i) Dividend + Growth
ii) Dividend + Re-investment
iii) Growth
iv) Growth + Bonus

15) From where do you get suggestion to do investment?

i) Peer group
ii) Chartered accountant
iii) Financial consultant
iv) Do it self

16 If yes then who manage it

i) Do it self
ii) Consultant

17 Are you satisfied with your current portfolio? Do you need any consultancy?
iii) Yes, I do not want any
iv) No, I need

18 You invest in mostly

v) Growth fund
vi) Balanced fund
vii) ELSS fund
viii) Gilt funds

19 In which mutual funds do you invest mostly?

ix) Open ended
x) Close ended

20 What portion of income/extra income you invest in mutual fund (in percentage)
 xi) 0 – 20
xii) 20 – 40
xiii) 40 – 60
xiv) 60 – 80
xv) 80 – 100

21 What is the capital appreciation percentage you get as an average?

xvi) Below 20
xvii) 20 – 40
xviii) 40 – 60
xix) 60 – 80
xx) 80 & above

22 Where do you prefer to trade in

(a) (1)Nse (2)Bse (3)Ncdex (4) Forex

23 For which service do you have your demat account in above

(b) (1)brokrege (2) credit policy (3) annual maintanence charge (4)
service

24 Any other fecility or service which you are not getting there and want to avail
(1)less brokege (2) credit policy (3) funding facility