Summer Internship Project Report

On

“A STUDY OF INVESTORS’ BEHAVIOUR AND KNOWLEDGE

ABOUT WEALTH MANAGEMENT AMONG INDIVIDUALS”

Completed At

KARVY STOCK BROKING LIMITED

By

Rajat Bansal

(Roll No. FB18098 PGDM (2018-20)

Under Joint Supervision of

(Faculty Mentor- Dr. Navneet Joshi and Industry Mentor- Mr. Rohit Kathuria)

Presented in Partial Fulfillment of the Requirements of

Post Graduate Diploma in Management

3, Institutional Area, Rohini, Sector 5,

New Delhi – 110085 India
 KARVY STOCK BROKING LIMITED
3B, Second Floor
Rajendra Place
New Delhi-110060

CERTIFICATE

Certified that the summer internship project report on “A Study of Investors’

Behavior and Knowledge about Wealth Management among Individuals” is
the bonafide work of “Rajat Bansal, Roll No: FB18098”, pursuing PGDM,
Batch (2018-20) of Jagan Institute of Management Studies, 3, Institutional Area,
Rohini, Sector 5, New Delhi - 110085. The work has been done under my
supervision during 01/05/2019 – 01/07/2019.

Date: 22.07.19 Ms. Rohit Kathuria

(Designation)
Karvy Stock Brocking Limited
 CERTIFICATE

This is to certify that the summer internship project report on “A Study of

Investors’ Behavior and Knowledge about Wealth Management among
Individuals” is a bonafide work of “Rajat Bansal, Roll No: FB18098”,
pursuing PGDM, Batch (2018-20) of Jagan Institute of Management Studies, 3,
Institutional Area, Sec-5, Rohini, New Delhi – 110085. The report was prepared
under my supervision during 01/05/2019 – 01/07/2019.

Date: 22.07.19 Dr. Navneet Joshi

Professor, Faculty Guide
JIMS, Rohini, Sector 5, New Delhi - 85
 STUDENT’S DECLARATION

I declare that the Report on “A Study of Investors’ Behavior and Knowledge

about Wealth Management among Individuals” is an original work done by
me in accordance with the guidelines prescribed by the Dean’s office for
preparation of Summer Internship Project Report and the work has not been
submitted anywhere else for review.

I understand that if the content of the work is found to be plagiarized at any time
of its evaluation, my report can be rejected and disciplinary action may be
initiated against me.

Rajat Bansal
Roll. No. - FB18098
PGDM (2018-20)
 ACKNOWLEDGEMENT

The internship opportunity I had with Karvy Stock Broking Ltd was a great chance of
learning and professional development. I am also grateful for having a chance to meet so
many wonderful people and professionals who led me through internship period.

Bearing in mind I would like to express my gratitude and special thanks to Mr. Rajiv R
Singh, CEO of Stock Broking Ltd for giving me opportunity to complete my internship in
his esteemed organization.

I express my deepest gratitude to Mr. Rohit Kathuria Cluster Manager Retail broking for
being my company internship guide. Who in spite of being extremely busy with his duties,
took out time and guided me, heard me, kept me on the right path and allowing me to
carry out my project in the esteemed organization.

I would like to thank Dr. Pooja Jain (Director, JIMS), Dr. Pratima Daipuria (Dean PGDM)
and Dr. Navneet Joshi (Professor, Faculty Mentor) for giving their valuable inputs and
helping me throughout the internship. I would like to express my thanks to them for their
careful and precious guidance which were extremely valuable for both theoretically and
practically.

I perceive this opportunity as a big milestone in my career development. I will strive to

use gained skill and knowledge in the best possible way, and I will continue to work on
their improvement, in order to attain desired career objectives.
 TABLE OF CONTENT

S. NO. PARTICULARS PAGE NO.

1. Certificate (from the organization)
2. Certificate (from the faculty mentor)
3. Author’s declaration
4. Acknowledgement
5. List of tables
6. Executive Summary
7. Chapter 1: Overview
1.1 Introduction
1.2 Overview of the company
1.3 Overview of the industry
8. Chapter 2: Research Methodology
2.1 Objectives and Scope
2.2 Research design
2.3 Sources of Data Collection
2.4 Data Analysis-Tools/Techniques
2.5 Sampling Design
2.6 Limitations of the study
9. Chapter 3: Conceptual Background
10. Chapter 4: Data Analysis and Findings
11. Chapter 5: Discussions and Conclusion
12. Chapter 6: Recommendations
13. Bibliography
14. Annexure
Executive Summary
 Chapter1: Overview

1.1 Introduction
1.2 Overview of the company-Karvy Stock Brocking Limited

• COMPANY PROFILE

Karvy group is a financial service group , headquarter in Hyderabad. It provides stock

broking and research advisory services in India. The company offers portfolio analysis,
depository participant, financial planning , management services , stock broking , wealth
management and many more for individual and institutional clients. It is ranked among the
top five in the country across its business segments. Other than India, it also has a presence in
Bahrain, Dubai, Malaysia, Philippines and the United States. It was established in the year
1983 and is now headed by Mr. C Parthasarathy as Chairman. The group has more than
30,000 employees , spanning 900 offices in about 400 cities and town.

Karvy group provide various financial services including corporate finance, insurance
broking, investment banking, NBFC (loan to individual, micro and small businesses), among
others. In its bid to tap the ever growing online business segment, Karvy group has recently
forayed into E-commerce business. The initiative named as Karvyclick.com will aid small
and medium enterprise to go online for selling their product in various ecommerce platforms.

Karvy has won various awards at various platforms such as Krishi Pragati award 2017,
Derivative house of the year 2017 by ASSOCHAM, Market excellence award; commodities-
Metal, NSDL star performer award 2014 and many others. Karvy stock broking is committed
towards being customer centric providing them with best services and retaining them in order
to generate maximum profit for the organization.

Vision

To achieve and sustain market leadership. Karvy shall aim for complete satisfaction of its
customer by combining its human and technical resources. To provide world class quality
services. In the process Karvy shall try to meet and exceed customer satisfaction and set
industry standards.
Mission

“Our Mission is to be leading and preferred service provider to our customers, we aim to
achieve this leadership position by building innovative, enterprising and technology driven
organization which will set higher standards of services and business ethics.”

• KARVY GROUP OF COMPANIES

 • MARKETING STRATEGY AT KARVY

1. Market Positioning

Market positioning strategy of Karvy is providing single window financial services with
comfort to customer. Karvy prefer on the customers who prefer almost all financial services
under one roof. Karvy provides various investment services, out of which stock broking &
Portfolio management services is the most important. With various investment and financial
services Karvy wants to build and design a profitable portfolio for customer. Karvy is
promoted as number one investment product distributor of India.

2. Target Market

Karvy uses demographic segmentation strategy and segment people based on their
occupation. PMS is an elite investment product, so it is targeted in HNI market where a
person is ready to invest a minimum amount of Rs. 25 Lakhs and has high risk taking
appetite. Most of the PMS clients of Karvy are High salaried individuals, Business man and
person with high saving or regular market investor. Karvy gives exclusive training to all its
employees a different set of training to deal with customers to whom PMS is pitched or sold.

3. Marketing Channel System

Karvy uses one level marketing channel for investment for product distribution. Sub broker
company on roll pay employees work as intermediary between Karvy and its clients. Karvy
has both forward and backward flow of activity through channel. Sub brokers are given
training, equipments and stationery. In return subbrokers get clients for the company in return
of fees.

4. Training channel members

Karvy provide training to its employees and sub-broker as they are viewed as the face of the
company. The training department explains various scheme of investment to its employees
and sub-brokers with all its objective risk factors and expected returns. Company also
organizes seminar and conferences to guide its employees and sub-broker.

5. Advertising and promotion

Main objective of advertising for Karvy is to create awareness about the products and
services offered by Karvy. It not only creates awareness among the customer but also among
employees, brokers and sub-brokers.

Karvy is not involved in direct advertisement using modes like electronic media and paper
media. Karvy advertisement is made indirectly by the companies associated with it. They
publish their name and logo of Karvy in the annual reports of various companies. Karvy also
publishes its weekly stock Market news letter ‘Karvy Bazaar Baatein’ and its monthly
magazine ‘Fin polis’ to guide its investors.

1.3 Overview of the industry- ENGINEERING, PROCUREMENT AND

CONSTRUCTION (EPC) INDUSTRY

Industry Analysis:

• Porters Five Forces Model

This model was developed by Harvard Business School’s Michael Porter to examine defining
characteristics within an industry and how those characteristics influence strategy and
operation for specific business. The five forces first consider competition among the leading
the firms in the industry. This helps in determining the efficiency in the market. Then comes
the bargaining power of the suppliers, bargaining power of customer, threat of new entrant
and threat of substitute.
1. Degree Of rivalry

The degree of competition is high in the industry as there are many other firms that provide
services to the customer. Some of the major competitors are Motilal Oswal, ICICI, Kotak
PMS, Aditya Birla, Alchemy, Sundaram Finance, Old Bridge, Unifi, Enam and many more.
There is cut throat competition as the investment market, so only thing that gives the edge in
the competition is Service, Charges and Proper investment knowledge. Better service with
lesser charges with proper investment tool and knowledge give a competitive edge to the
firm. Karvy along with its research team, who does a deep research about the different stocks
in which they are going to invest and proper study about the market situation, makes Karvy a
ideal platform for making the investment.

2. Threat of new entrants

As the industry is very old and takes a very long time to set up customer base and get them in
confidence to start any type of business. So the new entry is difficult and even if there is new
entry it takes a long time to get into business. Large organization which is already established
in different sectors or similar sector with different product can enter the market easily. Karvy
as an organization have competition from already established firms and not any new firm
which is trying to emerge in the Indian market.

3. Threat of substitutes

There is a high risk of the substitutes for Wealth management services. There are many
substitute products available in the market to earn good returns on the investment. Many
people do investment for a short period of time so they will invest in those products which
have a short investment period and average returns. These products include Money Market,
gold, silver, short term debt etc and many more. Many people don’t have risk appetite so they
invest in risk free or less risk instruments such as debt funds, saving accounts, fixed deposits
and so on. Other substitute products are Mutual Funds, SIP, ULIP, PPF, NPS and many
others.

4. Bargaining power of suppliers

Bargaining power of suppliers is not very high as the suppliers also want to make high profits
on their products which they are selling to fund manager. Suppliers give fund managers
utmost importance as they are the one who purchase the suppliers product on behalf of
customers and manage for them.

5. Bargaining power of Customer

Bargaining power of customer is very high. In this sector of investment customer has various
options for their investment. Not only there is threat of customer moving to rival fir, he also
has option of choosing substitute product for investment. This is a customer dominated
market.
Broad Factors Analysis (PEST analysis)

Broad factor analysis is also known as PEST analysis. PEST stands for:

• P: Political
• E: Economic
• S: Socio demographic
• T: Technological

This technique or analysis mode is very useful in predicting and analyzing the external
environment.

1. Political factors

Politics is something that can affect any industry. The rules and regulation which is drafted
by SEBI is a government organization. All the investment related rules and regulations,
protection of customer’s right and many other rules are formulated by government
organizations.

2. Economical factors

If the economy is performing well, the investment market would be in good condition to
make investments and earn higher profits. If the economy of the country is not performing
well, industries won’t do well this will lead to ultimately dropping in the prices of the shares
of those company. This will lead to drop in confidence level of the customers and they won’t
invest in the markets.

3. Socio-cultural factor

Socio-cultural factors include education level of customers, Attitude toward product quality
and its services, lifestyle, buying behavior and pattern, Social class, average disposable
income and many more. In case of wealth management the risk taking apatite is very
important. Socio-cultural factor is very important in deciding if the customer will be able to
invest or not.

4. Technological factors

This is era of technological development, and same is applicable in the case of PMS. Earlier
there used to be physical share certificate, this would increase the operations cost, which
would ultimately and finally lead to deduction of some amount from the profit and customer,
would get less profit. Now everything is centralized and connected by internet. This led to
cost minimization and profit maximization. Share can be now directly bought online using a
trading platform, D-mat account and trading account.

SWOT analysis

SWOT analysis is very useful determining the present and the future standings of the firm.
1. Strength

Karvy has very strong well connected branches and franchisee all over India. As it is one of
the leading stock broking firm it has very highly educated, dedicated and has great knowledge
about the product. Karvy has very well designed and user friendly online website and trading
portal. If customer has good knowledge about the investment and trading, he can directly
invest using online portal. He doesn’t need to call anyone or visit any branch.

2. Weakness

Not enough advertisement. The company turnover is dependent on the market performance.
There is lack of loyal clients.
3. Opportunity

As India is developing country, it is also known as land of opportunities. Many people in

India are still unaware about the investment option and services available, many people still
feel that investing in stock and share market is very unsafe. All this has led to increased
opportunities of capturing the untapped market. B grade cities should the main opportunity
market as it is still not touched to that extent.

4. Threat

Maximum threat is from the competitors, other threats are from the substitute products. If the
substitute product performs well then the customer would be more attracted toward that
product instead of investing in wealth management services. Other threats are changing rules
and policy of government and SEBI. Apart from all this there is threat of customers
withdrawing money from market due to economic condition.
DEMAT ACCOUNT

D-Mat cum trading account

Essential Information about brokerage and fees

Secure login terminal and site

AMC charges

Requirements for having D-mat cum trading account

Pan Card Copy

Address proof

Cancelled cheque of registered bank

Payment Cheque (for opening of account and initial charges)

Brokerage Slab/chart

• Exclusive Rs. 2,999/- scheme

Slab Min
Delivery 0.20% 2 Paise
Intraday 0.020% 2 Paise
Options Rs 50 Per lot
Futures 0.02%

• Exclusive Rs. 1999/- scheme

Slab Min
Delivery 0.25% 2.5 Paise
Intraday 0.025% 2.5 Paise
Options Rs. 60 per lot
 Futures 0.025%

• Exclusive Rs. 650/- scheme

Slab Min
Delivery 0.30% 2 Paise
Intraday 0.030% 2 Paise
Options Rs 50 Per lot
Futures 0.03%

Secure login terminal of Karvy

Unique user ID (Different for each and every client)

User Password (Needs to be changed every 15 days)

Security key(Which generates and changes security number randomly)

OPERATING PHILOSOPHY OF KARY STOCK BROKING COMPANY?

The business principles on which KARVY was founded are the drivers behind our providing
clients with the best in class services. These business principles act as guidelines for us in
delivering excellence and integrity across our operations.

Client’s interests: What is good for our clients is good for us

We measure our success by the asset appreciation of clients at a given level of risk.

We have an arm’s length relationship with all our product partners – the client’s needs dictate
the exact product. No product reputation is bigger than the client’s needs and no partner
relations dearer than returns on the client’s assets.

We strive to have the most diverse set of choices for clients in terms of investment options;
each client has different needs and each optimal asset allocation mix will be different.

People passion

Our wealth solution are the collective sum of outputs of each member of our team. We ensure
that all members of our team have sufficient aptitude, are trained well and motivated enough
to keep on performing at their best

Aligned Partners

We have cordial relations with all product partners and they respect us for our keeping our
client’s interests first. We also value the contribution of our partners in technology,
marketing, and organization building and strive to be fair in our dealings with them – they,
too, are completely soaked in our Clients-first culture.

Competition

With the organized Indian wealth management sector being in its nascent phase, we welcome
all serious competition. We respect the abundant talent pool in India and believe that only
that talent which is aligned with the client’s interests will be able to create value for
shareholders. We do not match short-term revenue generating tactics of any competitor.

Compliance and Ethics

Ethics and compliance at KARVY are non-negotiable areas. We uphold them to the highest
degree in all our interactions.

MANAGEMENT TRAITS OF KARVY

At Karvy Private Wealth, we pride ourselves on our unique management traits which give us
a distinct advantage:

Our experts - a team of personal asset managers at your service:

At Karvy Private Wealth excellence comes as standard. The management team consists of
professionals with pedigreed academic records and in-depth expertise in the wealth
management field.

And with the strength of the entire Karvy Group within our reach, you receive full advantage
of the industry expertise available exclusively within our group. We are what we repeatedly
do, therefore excellence is not an act at Karvy, it's a habit.

Maximum choice of products & service:

Karvy Private Wealth offers the widest range of products and services, providing clients a
variety of options all through a single contact point. Products and services include Equities,
Debt Instruments, Commodities, Mutual Funds, Insurance, Structured Products, Financial
Planning, Real Estate solutions, etc.

Product-neutral recommendations:

We ensure that our recommendations are 100% product-neutral and unbiased because unlike
the others, we are neither tied up with any one particular insurance company nor do we have
our own mutual funds.

All-India presence:

With presence in over 400 branches across India, Dubai and New York and an additional
300+ franchisees across the country, we are poised to cater to families and businesses spread
across multiple cities in India providing them with combined and integrated solutions.

Decisions based on scientific and researched based insights:

With intensive in-house research carried out across various asset classes and investment
products. Rapid responses to changing market conditions. And with individual needs placed
at the centre of scientific and calculated tailor-made solutions built for each client, you can
trust KPW to take a sound decision with your investment.

Mutual relationships built on trust:

Our successes are a result of a team effort. At Karvy you will benefit from personalized
service with multiple face-to-face meetings. Your personal wealth manager has the unique
capacity to mobilize the Karvy Group's leading experts to service your particular needs at
anytime. Your journey at a Karvy Private Wealth will always end with a warm handshake
and a feeling of mutual trust.

Technology

Omnesys Technologies is the company that developed and monitors the Karvy website.

The website provides best user experience possible.

It displays everything in detail

The website looks like

Karvy uses “NEST TRADER” software.

Karvy has its official mobile application which is reliable to use (android/ios/windows).

It displays all the Top Gainers and Top Losers for the customers.

It consists of the option called “Ask the expert” which provides the required information to
the clients.
STRENGTH OF KARVY Leveraging breadth of related businesses that KARVY is in

KARVY is an integrated financial services group, with Karvy Private Wealth being one of its
arms. The entire group’s strengths are leveraged to provide end-to-end wealth solutions to
Karvy Private Wealth clients. For example, SME clients can receive solutions on their
personal wealth while also getting investment banking solutions from the I-banking arm of
Karvy.

Maximum choice of products & services

Karvy Private Wealth offers the widest breadth of products and services, providing clients a
variety of options through a single contact. Products and services include Equities, Debt
Instruments, Commodities, Mutual Funds, Insurance, Structured Products, Financial
Planning, Real Estate solutions, etc.

Product-neutral recommendations

We ensure that our recommendations are 100% product-neutral and unbiased because unlike
other players, we are neither tied up with any one particular insurance company nor do we
have our own mutual funds.

All-India presence

Set to have business in 20 - 25 cities we are poised to cater to families and businesses spread
across multiple cities in India providing them with combined and integrated solutions. For
one-off services, if required, we can also leverage KARVY Group’s presence in 400 cities.

Karvy Private Wealth Approach

Our approach in building an optimum portfolio involves s four pillars:

Risk Evaluation: Through a consultative process, we understand the financial goals of the
investor, his appetite for risk and the life cycle profile to ascertain whether a conservative,
moderate or an aggressive investment strategy ought to be deployed.

Asset Allocation: Our Wealth Managers then develop a unique asset -allocation strategy .
They formulate a tactical approach for both the long term and the short term.

Restructuring of existing portfolio: Here, we review your existing portfolio based on asset
allocation, and the mutually identified financial goals. Our portfolio managers are well
equipped to create unique and personalized investor portfolios. We then suggest unique
combination of products across asset classes.

Execution: We ensure careful execution of all the transactions through our teams of personal
Wealth Managers.

Reviews and recommendations: Our investment counselors constantly scrutinize and

recommend new investment options depending on market fluctuations.

WEALTH MANAGEMENT

Wealth Management is continous investment advisiory process that is a combination of

financial planning, investment portfolio management and a number of aggregated financial
services. It offers several strategies and plans that allow affluent individual or companies to
attain all possible financial goals in a systematic manner.

The goal of wealth management is to sustain and grow long term wealth.From an affluent
person’s standpoint,wealth management is a science of enhancing their financial situation in a
strategic manner. It is a continuous investment advisory process that is a combination of
financial planning investment portfolio management and a number of aggregated financial
services. It offer several strategies and plan that allow individual or companies to attain all
possible financial goal in a systematic manner.

BENEFITS OF WEALTH MANAGER

When you know where you stand, it becomes very easy to take decisions for investments and
financial plans. A wealth manager can be of great support in providing the current status of
your finances and offering a detailed analysis of your financial health.

A professional wealth manager brings a set of multi-disciplinary skills to the table, and
greatly helps with allocating assets, tax optimization, savings goals, retirement, and passing
assets to the next generation.

They help you determine the allocation of investments based on life’s realities, help you
prepare for your retirement, help you with inheritance issues and transfer of assets, help you
preserve and manage wealth, and so on.

A professional wealth manager can simplify confusing financial markets, and help you
differentiate between good and bad investments.

No matter what level of assets you have, a wealth manager can help you in taking decisions
for your charities and earning tax benefits out of it.

Comprehensive wealth management involves long-term strategic planning of your financial

goals. A wealth manager effectively aligns your plans and objectives, and creates a road map
based on your financial status, and sets realistic goals and strategies for the business to
achieve your targets.

The assessment of the gaps between your goals and current financial status is necessary to
help you plan your actions accurately. A wealth manager helps you conduct the gap analysis
to evaluate your resources, strength and weakness. They also help you fill these gaps to meet
growth expectations.

Here is 4 step financial planning process:

RISK PROFILING:

Through a simple, easy-to-answer questionnaire, they try to gauge their risk appetite. Your
investment decisions should be dominated most heavily by how much risk you are willing to
take. Depending on their risk appetite, the specific instruments required to fulfill all their
needs across various time periods will be identified.

NEED ANALYSIS:

It identifies all their prospective financial requirements and liabilities. These may range from
buying a car to sending their kid for education abroad.

MAPPING YOUR RISK PROFILE WITH NEEDS:

To fulfill the needs, the right asset allocation mix has to be identified. Investments have to be
embarked for their needs, depending on risk profile. It aims for right asset allocation mix for
your investment through this exercise.

IDENTIFYING THE RIGHT INVESTMENT INSTRUMENTS:

It provides a wide variety of investment instruments like MUTUAL FUNDS, FIXED

INCOME BONDS, RBI BONDS, PRINCIPAL PROTECTION PLAN, etc. Bank has

tie –ups with a variety of mutual funds for investment suitable for us. Their unique
proprietary research cherry-picks the best mutual funds in various funds in various risk
categories to enable us to take an informed decision
BENEFITS OF WEALTH MANAGER

Wealth management can help you determine what's really important to you, then develop
actionable strategies to help you realize your most cherished hopes and defend against the
things that might undo them.

Income and Lifestyle

Through an in-depth discovery process your Financial Advisors will work with you to
understand and document what you want to do in this lifetime, from now until retirement and
from then on. They'll then map out a course to help you seek the returns you'll need for how
you intend to live and to achieve the income you'll need to do exactly what you want one year
at a time and, if they like, strategies to guarantee that income.

Borrowing

They view borrowing as a strategy — an array of ways to unlock value in assets you own,
without compromising the ability of those assets to continue to work for you over time.

If such talk of strategy sounds like how most firms talk about investing, it should. They
believe how people invest and how they borrow is inextricably linked — both sides of one
balance sheet, one plan.

Asset Protection

By understanding the lifestyle you enjoy, and the one you're building toward, your Financial
Advisor can see the threats against it — taxes, inflation, volatility, creditors, lawsuits, identity
thieves, tragedy — and help you deal with them using everything in the arsenal of one of the
world's largest financial services firm.

Wealth Transfer

Your Financial Advisor will approach your plan for wealth transfer from a wider angle than a
traditional estate plan. They work with you to understand your definition of a rich life, and
then craft a plan to help you lead it and pass on what you see as most important to the next
generation.

Your advisor will approach your plan for wealth transfer from a wider angle than a traditional
estate plan. They work with you to understand your definition of a rich life, then craft a plan
to help you lead it and pass on what you see as most important to the next generation.
This might mean a passion for education, or a sense of obligation for each generation to help
give the one that follows a leg up in life or both. It could mean protecting a work ethic and
thirst for accomplishment, or protecting your family's bonds of affection toward one another.
Whatever it is, it should start with your definition of a rich life.

Investment Management

They believe that your plan for your life is the most important part of investing. Little
things...like when you plan to retire — and when you secretly hope to retire. The business
you'll open when you do. How much you'd like to travel. And the aging parent who will need
to move in with you in the next few years.

Investing with a Financial Advisor is based on the simple yet potheyrful premise of wealth
management: Your investments and your life are uniquely intertwined.Whether by design or
by accident, they are all part of one plan. they advise that it be by design.

Business Strategies

As you lead your business toward its next stage — whatever that stage may be — you'll be
pleased to learn that your Financial Advisor understands the connection between your
business and your life. They are one and the same.

Their clients tell us that seeing this bigger picture makes all the difference between us and
what they used to expect from a financial firm — in how they think, how they plan and in the
scope of what they do. From their standpoint, it's simply a matter of treating your business
like it's the biggest investment of your life, if for no other
[Type text]

Different type of Assets Product

1. Equity :- A stock market, also known as equity market or share market is an exchange where stock
brokers and traders can buy/or sell shares,bonds and other securities. The major exchange in India are NSE
and BSE.

Index:-

It is a statstical measure of change in the economy or securities market. It is a portfolio of securities that
represent a particular market or a portion of the market. Eg : A n index can represent a market,such as a
portfolio of stocks such as NIFTY50 or NIFTYBANK representing only a sector or a portion of the market.

Significance of index:

An indicator of performance of overall market.

A benchmark for portfolio performance.

Used as an underlying asset for financial application of derivative products.

Why invest in Equity?

Benefits of investing in equities

Equities v/s other investment options

One of the most liquid asset classes to invest in.

Equity as an avenue has provided highest return amongst all asset classes over the long term.

Here's a quick look at the long-term returns generated by different tools:

 [Type text]

long-Term Returns

Though the volatility keeps fluctuating, the long-term returns of investments are consistently reliable. This
can be verified using historic data of any indices. Following table represents the total returns of Sensex over
last decade.

Furthermore, the benefits of long-term investments is not just limited to good

10 Year CAGR CAGR 1 Year Return

Average 16.1% 17.4% 15.7%

Minimum 6.5% 0.0% -55.6%

Maximum Std. 23.1% 49.5% 111.5%

Deviation 4.0% 11.4% 26.2%

5 Year Return
[Type text]

returns, it also covers inflation and secures the value of returns. This is well reflected in the following chart,
which signifies the growth of the total returns of Sensex as compared to the inflation.

3. Mutual fund :- A mutual fund (MF) is a mechanism to pool funds from multiple investor and invest these
in securities such as stocks,bonds,money-market instruments and other similar assets. Equity investment
seems intimidating at times.Mutual funds not only make investment simple but also make an interesting
investment option.Every investment has its share of risks and rewards associated with it.

The two factors go hand-in-hand.With mutual fund investment you have the option to decide on the fund
depending on the amount of return expected and your risk appetite.Investor can seek advice from experts
while making investment decision.

Mutual funds have become popular investment vehicles offering various kinds of scheme with different
investment objectives.In order to offset potential losses,the funds are well diversified.Mutual funds offer
many benefits :

Professional management of funds

[Type text]

Diversification of the portfolio

Low cost of investment

Highly liquid in nature

Well regulated

Starting new?Start small with SIP(Systematic Investment Plan)

Systematic Investment Plan(SIP) in mutual funds function in a similar manner as a Recurring deposit in a
bank.The benefits of SIP are stated below.

Inculcates disciplined investment

Being disciplined is the key to successful investment. With SIP options you can commit a certain amount of
money to be invested every month.There are host of AMC’S having SIP option in almost all of its scheme
offerings.

Reach your financial goals

Planning to buy a car in a year?? SIPs help you to fulfill your financial goals with specific,future financial
requirement.

Power of compounding

It is always advisable to make small regulator investments than to make one large investment.

For example a SIP of Rs.2,500/-

Excelsheet:-

Return rate 5 years 8 years 10 years

12% ₹ -2,06,215.92 ₹ -4,03,816.41 ₹ -5,80,847.69

15% ₹ -2,24,204.22 ₹ -4,64,841.43 ₹ -6,96,643.18

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18% ₹ -2,44,144.68 ₹ -5,37,240.10 ₹ -8,40,643.79

20% ₹ -2,58,635.45 ₹ -5,92,942.19 ₹ -9,55,908.89

Advantage of Rupee Cost Averaging

SIP’S allow investors to accumulate stocks at different price levels allowing the benefit of rupee cost
aveaging.

Effortless

Investing in SIP’s is hassle-free an convenient.Simply put a decided amount every month. It is adisable to
keep a long-term horizon for your

SIP’s to reap the best benefits.

Derivatives

The derivative is a financial instrument which derives its value from the underlying asset. The
underlying asset can be equity,commodity,currency ,bonds,or security.Derivatives are
mostly used for hedging the risk which is associated with owning the underlying asset.

Derivatives Products are classified into four types:

1) Forward 2) Futures 3) Options 4) Swaps

Forward

It is a contractual agreement between two parties to buy/sell the underlying asset at a pre -determined price
on a pre-determined date.
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The terms and conditions of the contract size can be privately negotiated.

Futures

It is a contractual agreement between two parties to buy/sell the underlying asset at a pre-determined price
on a pre-determined date. The terms and conditions of the contract are standardized and are determined by
the stock exchange.

Options

It is a contractual agreement between two parties to buy/sell the underlying asset at a pre-determined price
on a predetermined date.

There are two parties to the contract,

i) Buyer- has a rigth but not an obligation to fulfill his contactual obligtion ii) Seller - has an
obligation to fulfill his contractual obligation. The terms and condition of the contract are standardized and
are determined by the stock exchange

Swaps

It is an agreement between two parties to exchange cash flow of one party’s financial instrument for those of
other party’s financial instrument.

Swaps are a series of forward contracts.

Significance of derivative markets:

It helps in price discovery based on actual valuations.

It helps in transfer of risk from those who have low appetite for risk to participant with high risk appetite

Shift of speculative trades from unorganized markets to organized markets.

Fixed Deposit

Fixed deposit is made for those investor who want to deposit lump sump amount of money for a fixed period
of time say a minimum 15days to 5years and above there by earning higher rate of interest in return in a risk
free investment. Investor get lump sump amount at the end of the maturity date.
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Bank fixed deposit are one of the common saving scheme open to the average investor.Fixed deposit are the
most common scheme open to an average investor.Fixed deposit gives higher interest rate than saving bank
account. The facilities varies from bank to bank. Some of the facilities offered by bank are overdraft(loan)
facility on the amount deposited , premature withdrawal before maturity period (which involves loss of
interest) etc

BOND AND DEBENTURE :- Bonds are loans made to large organizations. These include corporations,
cities, and national governments. An individual bond is a piece of a massive loan. That’s because the size of
these entities requires them to borrow money from more than one source.

DEBENTURE :- Whenever a company wants to raise money from the public it issues a debt paper for a
specified tenure where it pays a fixed interest on the investment. This paper is known as a debenture. Some
of the debentures are termed as convertible debentures since they can be converted into equity share on
maturity. A Non - Convertible debenture or NCD do not have the option of conversion into shares and on
maturity the principal amount along with accumulated interest is paid to the holder of the instrument. An 11-
12% fixed return to investors is a very tempting offer to resist when equities are not doing well. Not many
fixed income instruments are able to deliver such high returns. But in last few years companies have raised
good money through Non Convertible Debenture(NCD). The main attraction was high return to investors in
comparison to other fixed income instruments like bank deposits.

COMMODITY

A commodity market is a physical or virtual marketplace for buying, selling and trading raw or primary
products, and there are currently about 50 major commodity markets worldwide that facilitate investment
trade in approximately 100 primary commodities.

Commodities are split into two types: hard and soft commodities. Hard commodities are typically natural
resources that must be mined or extracted (such as gold, rubber and oil), whereas soft commodities are
agricultural products or livestock (such as corn, wheat, coffee, sugar, soybeans and pork).

FOREX MARKET

FOREX is the market in which currencies are traded. The FOREX market is the largest, most liquid market
in the world, with average traded values that can be trillions of dollars per day. It includes all of the
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currencies in the world. There is no central marketplace for currency exchange; trade is conducted over the
counter. FOREX transactions take place on either a spot or a forward basis.

LIFE INSURANCE:-

Life insurance is a protection against the loss of income that would result if the insured passed away. The
named beneficiary receives the proceeds and is thereby safeguarded from the financial impact of the death of
the insured. The goal of life insurance is to provide a measure of financial security for your family after you
die. So, before purchasing a life insurance policy, you should consider your financial situation and the
standard of living you want to maintain for your dependents or survivors.

GOLD :- Gold is a favourite investment by all and sundry in

India. High liquidity and inflation-beating capacity are its strong selling points, not to mention beauty,
prestige and so on. Though, there are phases when markets witness a fall in gold prices, it never lasts and
always makes a strong comeback.

WHY TO INVEST IN GOLD?

Safety, Liquidity and Returns are the three criteria most conventional investors look for before making any
investment. While gold meets the first two criteria swimmingly, it doesn’t do badly at the last one either.
Here are two main reasons why you should invest in gold:

Gold investment is worthwhile because it is an inflation-beating investment. Over a period of time, the
return on gold investment is in line with the rate of inflation.

Gold has an inverse relationship to equity investments. Example, if the equity markets start performing
poorly, gold too would have performed well. Considering gold as an investment option in your investment
portfolio will be a buffer to the overall volatility of your portfolio.

2. How to Invest in Gold

The ‘Golden question’ here is, how does one invest in gold. Traditionally, it was by buying physical gold in
the form of coins, bullions, artifacts or jewellery. Nowadays, there are more advanced forms of gold
investments such as Gold ETFs (exchange-traded funds) and Gold Funds.
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Gold ETFs are similar to buying an equivalent sum of physical gold but without the hassles of having to
securely store the physical gold. Here, there is no risk of theft/burglary as the gold is in Demat (paper) form.
Gold Funds involve making an investment gold mining companies.

understand different ways of investing in Gold from the table below:

Gold Gold ETFs (Exchange Traded Gold Funds

Funds)

Investment in physical gold Investor buys a proportionate The investment is made in

value of gold but not in the bullion and companies involved
physical form in mining gold

No need for Demat account The investor needs a No need for a Demat account to
Demat account invest

Market fluctuations directly Changes in the gold prices affect Changes in the gold prices
affect the prices of Gold that of Gold ETFs doesn’t affect Gold funds directly

No additional charges other Gold ETFs involve asset There’s a minimum charge to
than the physical gold itself management and brokerage fees manage the gold funds.
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Risks of theft and burglary Gold ETFs remove the burden of Eliminates the risk of theft/
associated with storing trading gold in the physical form burglary and buffers investments
physical gold to changing market fluctuations

No paperwork required for Paperwork required for investing Paperwork is required for
investing in Gold ETFs investing in Gold funds

Systematic Investment Plan No SIP option SIP available

(SIP) not available

Best suited for conventional Best suited for investors who Best suited for investors who
investors have the required time and skill expect high returns taking
set to trade calculated risks

consider your financial situation and the standard of living you want to maintain for your dependents or
survivors.
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OTHER ASSEST CLASSES

REAL ESTATE:- The real estate sector is one of the most globally recognized sectors. Real estate sector
comprises four sub sectors - housing, retail, hospitality, and commercial. The growth of this sector is well
complemented by the growth of the corporate environment and the demand for office space as well as urban
and semi-urban accommodations.

It is also expected that this sector will incur more non-resident Indian (NRI) investments in both the short
term and the long term. Bengaluru is expected to be the most favoured property investment destination for
NRIs, followed by Ahmedabad, Pune, Chennai, Goa, Delhi and Dehradun.

The Indian real estate sector has witnessed high growth in recent times with the rise in demand for office as
well as residential spaces. Between 2009-18*, Indian real estate sector attracted institutional investments
worth US$ 30 billion. Private Equity and Venture Capital investments in the sector reached US$ 4.47 billion
in 2018 and US$ 546 million in Jan-Feb 2019.

The main role of financial planner and wealth manager is to use all the asset classes in consideration and
make a portfolio according to the need of customer and keeping in mind the goal of customer such that the
risk of the investment get reduced and realistic goal of the investment get achieved in the specific time
period.

Different type of assest classes

ASSET CLASSES

• Gold • Equity • Debt • Real Estate

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Comparision of Assets Class

CHARACTERSTICS EQUITIES DEBT GOLD REAL ESTATE

RISK HIGH LOW/MODERATE HIGH HIGH

AVERAGE RETURN 15-20% 8-10% MARKET MARKET

LINKED LINKED
LIQUIDITY HIGH LOW HIGH LOW

MINIMUM AMOUNT 500 500 1gm Current market

price of the
property
TIME HORIZON LONG TERM SHORT TERM LONG TERM LONG TERM

TAXATION TAXABLE TAXABLE TAXABLE TAXABLE

FAQ

What is Wealth Management?

Wealth Management is the management of a client's wealth by a professional trained to get maximum value
for the client’s financial assets. An investment Management discipline, it incorporates various aggregated
financial services such as financial planning, investment portfolio management, etc.

What are the services Karvy offer?

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We offer a solution that covers Comprehensive Financial Planning, Wealth Review and Investment Strategy,
Retirement Planning through Goal-driven Investing, Risk Management & Insurance Planning, Property
Purchase & Financing , ESOP Advisory, Equity & F&O Trading, Commodities Trading or any subset of this
gamut of services. To learn about each of these services in detail visit our wealth management service.

Does Karvy Private Wealth have its own mutual fund?

We do not have any mutual fund of our own and neither are we affiliated to any one Mutual Fund AMC.
Therefore, we provide unbiased solutions on all mutual funds.

Do you guarantee returns?

While we use sophisticated mathematical/statistical tools to allocate your investments among the various
asset classes and model the growth in your investment portfolio, it is important to keep in mind the inherent
variability in market returns in most asset classes. Thus, we do not guarantee any minimum returns but we
do carry out appropriate simulations to provide adequate confidence on achievement of goals and targets.

What is the minimum level of investment required?

There is no prescribed minimum level of investment that we require to start our relationship. However, to
gain access to more sophisticated services and privileges, we may require a certain minimum commitment
from you. What is your fee structure?

Our fee structure is a combination of the fee charged for the comprehensive investment solutions provided
and the commissions that we receive from all the companies in whose products you invest.

Is my information kept confidential?

Yes, completely! We are deeply committed to the confidentiality of your data. We have built in
comprehensive processes to ensure that only your Wealth Manager has access to your data.
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CHAPTER 3

PRESENTATION OF DATA OBJECTIVE:-

o To understand the basics of investment and various

alternatives that is available with the investor. o Also to understand the customer psychology of investments
and what are the various objectives behind the investment.

TYPES OF RESEARCH DESCRIPTIVE IN NATURE-

The descriptive research design is one that describes the things such as the market potential for a product or
the demographics and attitudes of customers who buy the product. It includes questionnaire survey and fact
finding inquiry.

SAMPLE DESIGN

SAMPLE UNIT: DELHI,NORTH INDIA

SAMPLE SIZE: 70
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SAMPLE SELECTION: RANDOM, CONVENIENT

SOURCES OF DATA COLLECTION PRIMARY DATA COLLECTION:

Primary data was collected through questionnaires. Refer to the appendix for the data.

SECONDARY DATA COLLECTION:

Secondary sources through – Internet

ANALYSIS AND INTERPRETATION

Q.1) What is your age group ?

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age
7.50% 1.50% 0.00%

below 20
14.90% 20-30
31-40
41-50
58.20%
17.90% 51-60
above 60

According to the survey, maximum number of people belongs to the age group of 20-30 years. So they can
say that most of the respondents will be willing to take risk and make investments in the market instruments
with moderate risk.

Q.2) What is your gender ?

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SEX

41.80%

58.20% Male
Female

There is majority of respondent are male.

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Q3.) What is your occupation ?

Occupation
1%
3%
7.60%

student
Business
43.90%
Retired
Job
36.40%
House wife
self employed
other

3% 4.50%

The above graph shows the occupation of the sample respondents.

43.9% of the respondents belong to the category of student.

36.4% of the respondent belong to the category of salaried person.

4.5% of the respondents are into Business.

3% of the respondent are retired.

3% of the respondent are housewife.

7.6% of the respondent are self employed.

1% of the respondent are from other category.

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Q.4) What is your monthly income?

Income
3%
7.50%

20.90% 41.80% less than 20K

20 - 50 K
50K-1lakh
1-5lakh
26.90%
more than 1lakh

Maximum respondent are having income less than 20 thousand monthly.

Q.4) What is your monthly saving ?

Saving
4.50%

17.90%
34.30%
less than 1000
1001-5000
17.90% 5001-10000
10000-1lakh
25.40% more than 1lakh
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Q.5) Awareness about wealth management?

19.40%

Yes
No
80.60%

Q.6) Do you do financial planning ?

Column1

16.40%

22.40% Yes
61.20% No
May be
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Q.7) How do you take your financial decision?

Column1
1.50% 3%

7.50% 11.90% 22.50%

Word of mouth
1.50%
independently
broker
advice from CA
Financial Advisior
70.10% internet research
other

Q.8) Are you satisfied with present saving/investment plan ?

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Column1

40.30%
Yes
No
59.70%
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Q.10)
Aspect considered before investment ?
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Q.11)
Column1

11.90%

49.30% 23.90% Tax relaxation

Wealth Creation
Risk and Return

14.90% All
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Q.12)
What is the age when you start investment ?

Column1

6% 3% 13.40%

28.40% Less than 20

20-25
25-30
49.30% 30-35
35-40
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Q.13)
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Q.14)
Most important in investment ?

Column1
7.50%

10.40%
Return
Safety of principal

53.70% Diversification
28.40% liquidity
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Q.15)
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Q.13) Preffered investment option ?

Gold 26.90%

Real Estate 28.40%

Mutual funds 38.80%

Equity 20.90%

Debenture 4.50%

Bank Deoposit 67.20%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00%

Q.14) Attitude towards investment

highly risky
4.50%

risky
28.40%

modrately risky
78.40%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00%
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Q.15) Goal of investment ?

Column1

4.50% 10.40%
Retirement
13.40% 46.30%
Children Education
Buying House

16.40% Buying Car

Medical Insurance
9%
Other

Q.16) Investment Horizon?

Column1
1.50% 4.50%

7.50%
28.40% less than 5yr
14.90% 5-10yr
10-15yr
15-20yr
13.40%
20-25yr
29.90%
25-30yr
more than 30yr
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CONCLUSION

FINDING

After going through my training program and survey, I came to know all about
different aspects of investment strategies for mutual funds, stocks,derivative etc.
India is an emerging market. Consumption level is increasing with increase in income
level.

Majority of people approximately 46.3% have retirement has as a goal of investment

so we can give them mutual fund as SWP (SYSTEMATIC WITHDRAWAL PLAN)
as mutual fund scheme.

78.10% respondent refers to bank deposit as safe investment so we can pitch them
alternate investment option with higher interest like mutual fund which is having
better return on long horizon that is of 5 to 10 years with less risk.

70.10% do investment on there own so we can provide them financial advisiory

scheme of karvy wealth management scheme.

18 respondent out of 67 i.e. 26.9% are preferred investment is gold so we can

convince them to change there investment to GOLD MUTUAL FUND where they
can get a benefit of no making charge on it and easily into cash whenever there is a
need.

BIBLOGRAPHY

WEBSITES

WWW.KARVYONLINE.COM

WWW.SEBI.GOV.IN
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WWW.INVESTOPEDIA.COM

WWW.MONEYCONTROL.COM