Investment

What is Investment?

Investment is putting your money in a

Financial Instrument with the view of earning
a desired return out of that investment.
Objective of Investments
 Objectives of Investments
Objectives of Investments can vary according to the
needs and requirement of the individual.

1. Retirement Planning

A person having a view to build up a retirement

Corpus could invest in a Financial Asset. Generally
these investments are of a longer term in a nature
and a Mutual Fund is the most popular instrument to
invest for the Retirement planning purposes.
Investment
2. Childs Future Planning
Every parent has a dream that their children must live a
happy and successful life.So either for the child’s
marriage, education or for Business an individual takes
up an Investment Route.
3. Tax Planning
Now adays when many investments are allowed in the
Tax free Section of Income Tax Act in India. Almost
every tax paying person wishes to invest somewhere for
the dual purpose of investment and Tax Planning.
Generally Insurance and Mutual Funds are the most
common investment instruments here.
Investment
4. Speculation/Trading
Speculation or Trading means to invest with a purpose of
Short term Earning and Speculating on a Particular
Asset. Equity and Commodity Markets are the most
common pl ace where a trader can be found.

5. Business Needs
Mutual Funds, Insurance Companies, Banks, Financial
Institutions, Corporate who have a professional reason
of investing in financial markets as this is their primary
business. They have very rigid principles of Investing
with all the guidelines regarding Investing in place
before making an Investment. They generally invest
with a very large corpus.
Top Investors
 Warren Buffet

 Rakesh Jhunjhunwala

 Prem ji & Associate

 Radha K Damani

 Mukul Agrawal
Power of Investment
 Eicher Motor case

 Wipro case study

How 100 shares of Wipro grew to be over 3.28 crore

in 27 years?
What is Equity / Stock Market
Equity is a one financial instrument by which
company invite the public to invest their money as
Share in the company and investor can become a
kind of partner / Co-owner in the company.
The Market in which shares are issued and traded is
called Equity market.
Equity market can be divided into primary and
secondary markets.
 Primary Market & Secondary
Market
In the primary market, Securities are offered to public
for subscription by Companies for the purpose of
raising capital or fund.

Secondary market is an equity trading avenue in

which already existing / pre- issued securities are
traded amongst investors.
 IPO ( Primary Market )
IPO refers to Initial Public Offer, it may be also called
Primary Market, where company issues Equity &
raise Capital.
Now days most Company adapts Book building route
for raising capital through IPO, where online
bidding tooks place through exchange for applying
in IPO.

For applying for shares in an IPO either investor have

to fill physical form & submit or may apply through
online option given by some Members to its client
who then on client behalf fill & apply for the IPO.
IPO allotment / refund is processed within 15 days &
the shares are listed & traded in Secondary
Market / Stock Exchange in maximum 21 days of
IPO closing.
Secondary Market Trading Through
Stock Exchange
In India at Present there are Two Major Stock
Exchanges exist which contributes almost total
Volumes of Equity Trading in the Country i.e.

a) National Stock Exchange of India Ltd.(NSE) &

b) Bombay Stock Exchange (BSE)

At NSE around 1659 company’s Scrip are being

traded where as at BSE around 5788 Companies
are traded.
Factors Influencing Share Prices
Macro Economic Factors : National & Global
Economy status. ( GDP growth, Consumption,
Inflation, Country’s Economic condition etc. )
Sector Specific Factors : Sector growth,
Government Policies for Sector, International
Market of Sector & other relevant trends.
Company Specific Factors : Company’s Management
Strength & Credibility, Company’s Profitability,
Previous Track record, Balance-sheet Strength,
ROE, Company’s Future Prospects, etc.
 What is Index ( BSE Sensex 30,
NSE Nifty 50, Etc.)
Index is an weighted average of prices of leading
companies included in it.

BSE main Index named as SENSEX consists of 30

Top Companies according to Exchange criteria.
Apart from it there are other Indexes available at
BSE are Bse100, Bse200, Bse-midcap, Bse-
smallcap & so on, which shows the collective price
movement of scrips included in that Index.

Similarly NSE’s main Index is NIFTY50 which

includes top 50 Companies, the other indexes at
NSE are Junior Nifty, Midcap Nifty, Bank Nifty,
Cnx-IT etc.
Trading Mechanism at Exchange
Exchanges are now providing Screen Based Trading
Systems, where a client registered with Member of
Exchange may buy or sell shares of listed
companies through online Terminals.
At present Normal Market timings for Equity & FO is
from 9.15 am to 3.30 pm
One may get enter Buy / Sell Orders at Market rate or
put Limit order at desired price (subject to day
circuit limit of the Scrip) for buying or selling the
shares of listed companies.
The trades executed are done in specific Client code
& may be verified with the Exchange site.
Live Market Screen
 Settlement Mechanism at Exchange
( Pay in & Pay out of Shares &
Fund )
Exchange Clearing house settles the Trade in T ( Trading )
+ 2 days i.e. payment for sold shares & deliveries for
bought shares are received on T+2 days through
exchanges.

Normally client has to make Pay-in of his/her obligation i.e.

(payment or delivery) on T+1 day, & Pay-Out as
mentioned above is received fr. Exchange on T+2 day
 Through Whom & How can one
Trade
One can Trade through Either with Main Member of
Exchange directly or through registered Sub-
brokers of any of the Main Members.

For trading client has to be registered with the Main

member of Exchange by filling the KYC form and
executing the Client – Member Agreement for
Trading. PAN card & Demat a/c is Compulsory
for it.

Demat a/c is just like a Bank a/c where client’s

shares are kept in electronic form (dematerialized
form ). This a/c may be opened up with any of
Depository Participant ( DP )
 Client Registration / Account
opening / KYC formalities

 Duly Signed & Witnessed form with below supporting

 Pan Card
 Address Proof
 Bank Proof
 DP ( Demat a/c ) Proof
 A/c Opening Charges cheque
 Margin Cheque
 Trading & Margin System
Delivery Based Trading : When a client Buy a Share &
hold its delivery or Sell a share & give it delivery, it is
called delivery based Trade. Normally for Delivery trade
apart from the initial margin, client has to make Pay-in of
Fund or Shares on T+1 days

Intra-day Trading : Where a client Square up its buying

or selling before Market close, such trade is called intra-
day Trade or Square up trade. For Intra-day trade client
has to pay upfront Margin in form of E-cash or shares, in
order to cover the Intra-day Loss Risk out of its trade.
Margin may vary from company to company, normally
1/6 to 1/8 th value is taken as margin i.e.Intra-day
trading limit is given 6 to 8 times of amount given as
margin for normal trading in normal scrips. Margin
required is high for many scrips which have track record
of volatile price movement.
 Brokerage charges
For Delivery Trades : It ranges between 0.50 paise
ie.0.50% to 0.30 paise i.e. 0.30%

For Intraday Trades : Normally it is 1/10 th of delivery

brokerage ie ranges between 0.05 paise ie 0.05%
to 0.03 paise ie 0.03%

Minimum Brokerage Clause : If a share purchase or

sold is of very low price, instead of % brokerage
which becomes very low, we charge minimum
paisa per share which normally remains 3 paisa on
intraday & 5 paisa for delivery.
 Online Trading Platform
BEST : A software with available for NSE, F&O,
Currency & Commoditysegment. Available Free of
Cost for clients.

Mobile Trading through BEST Mobile

 Research Support
Mandot has In-house Team of Qualified persons at
HO for Fundamental & Technical Analysis &
Research of Shares, Currency & Commodities.

We provide Trading Calls & guidance on

1. Whatsapp
2. IPO Research Report & Monthly Performance
Report
3. As well as direct Interaction with Research Team.
 Trading in Future & Option
Future & Option Trading is good tool for Speculation as well as for
Arbitraging and Hedging one’s Portfolio. F & O Trading is available
on NSE on around 200 Scrip’s Approx where no Delivery base
trading takes place, but only the transaction of Money is made as
per increase & decrease in Prices of Underlying Security. Client may
also take & carry short position in any underlying / scrip.

In F&O, Scrip’s are traded in minimum Lot Size specified by Exchange (

Normally of Amt. Between 5.00 to 9.00 Lacs ). The Client has to
Pay only the Margin Amount for taking Position, as required by the
NSE daily. ( Normally 8-30 Percent of Contract Amt. ). Daily Mark to
Market Settlement takes place, where by daily pay in & payout of
Profit & loss is done on T+1 basis.

The Positions can be taken for Up to Three Months Future available at

a time. Each of them expires on the Last Thursday of the respective
Month. All the Open outstanding Position in that months contract or
squared off by the Exchange that day at the Closing Price of that
Security in Cash Market.
 Commodities Trading
Trading in commodities are very similar to the trades future & option Same as Future & options,
commodities are traded in minimum Lot Size specified by Exchange from time to time. The Client
has to Pay only the Margin Amount for taking Position, as required by the MCX and NCDEX.

The Positions can be taken for three to Six Months Future available at a time. Each of them expires on
the 20th day of the respective Month major in agri commodity & for other commodities there are
different expiry period.

Margin is charged on each commodity, as per the exchange stipulated rate. The rate of margin varies
from 6% to 41% on various commodities.
Main Commodities whose Derivatives are Traded at Exchanges
Precious Metals Agri Energy Metals
Gold Copper RM seed Crude oil
Silver Nickel TMC Natural Gas (etc) Lead
Soya been
Zinc
For Agri Commodities timings are 10 am to 5 pm for rest of the commodities it is till 11.30 pm on normal
day.
Normally November to March Open till 11:55pm & April to September open till 11:30pm
 Currency Derivative Trading
Exchanges has started Currency Derivative Trading
also, at present it is available in US dollar – Rupee.
Currency trading similar to f&O segment. Lot size is
of 1000 US Dollar, Contracts are available up to 12
month & Margin is around 4% only.
Final settelment of Currency contracts is done on two
days prior to last working day of respective month &
is settled at RBI reference rates of US dollar.
A separate KYC & Agreement is to be filled &
executed for trading in this segment.
Market timing for Currency Segment is from 9 am to 5
pm on week days only.
 Mutual Funds
Mutual Funds are pool of Money contributed by Investor
for investment on a pre stated objective. Each investor
is alloted units in proportion to their fund. It is a right
option for an investor who would like to receive all the
benefits of a professional & diversified portfolio
management but is unable to do so, due to constraint of
Money, Time & Information. The major advantage in
investing in a mutual fund is diversity with a minimum
investment and liquidity. The money spread over
various investments option and managed by
professionals reduces the risk.

Mutual funds discloses their NAV i.e. Net Asset Value ( in

per unit value terms ) on daily basis.

Now there is no Entry load / charges on Mutual Fund

Investments.
 Selection of stock broker
Integrity & Transparency our Core Values.
Efficient & Reliable Services.
All Financial Services ( Equity, Derivative, Commodities,
Currency, Mutual Funds, IPO & Insurance ) under single Roof.
Big & Dedicated team of Qualified Professional serving
Investors.
Latest Infrastructure & Technology set-up which is at par with the
best in the Industry for providing Quality & Speedy services to
the Clients.
Dedicated Relationship Managers to provide personalized
services and customized support.
Best Online Trading Platforms as well as 24 x 7 back-office
support
Qualified Research team equipped with best Software's, always
ready to assist Clients in choosing best Trading & Investment
avenues and Creating Wealth.
Benefits of having career in finance
Careers in finance offer a plethora of benefits. Here
are some of them:
 Good Money And Growth – It goes without stating
that once you are settled in a career in the finance domain,
you have the potential to earn high. Even several entry-level
positions are lucrative in terms of payments in the fields of
finance. Moreover, there is scope to work up the career
ladder quickly with the right set of skills and abilities.
 Balanced Lifestyle – Jobs across the financial sector
let you have a balanced lifestyle since you are better off in
terms of work schedules. Of course, there are stressful
days, but overall, the job domain offers better balance.
Benefits of having career in finance
 Job security: A career in finance bestows you with the
option to settle for a job that offers maximum financial
protection. An all-rounded security feature is beneficial in
any field. It allows you to relax in any place without giving
the move a second thought. 
 Diversity: One of the most noticeable features of
a career in finance is that it offers a range of posts that cater
to the field of finance. There are many specializations that
one can choose from in the financial sector.
 Scope for growth: Finance firms always look for new
talent to upscale their establishment. It makes it easier for
people looking to move up the career ladder. At the same
time, career paths in finance offer an easy option to relocate
since it isn’t always location-specific. 
The different career opportunities available
in this field for students are as follows :-
 Dealer ( Equity / Derivative / Commodity).
 Relationship Manager / Executive.
 Wealth Manager / Financial Planner / Adviser.
 Arbitrage ( Equity / Derivative).
 Client Relationship (Manager / Executive).
 Business Development Manager.
 Technical Analyst.
 Research Analyst.
 Fundamental Analyst.
 Back Office Executive.
 Executive or managers in Dipositories
 Executive & managers in Risk Management / RMS or
survilance department
 Sales Officer / Manager.
The different career opportunities available in this field
for students are as follows :-

 Sub - broker.
 Branch Head.
 Tele Callers E-broking.
 Client Acquisition Executive.
 Customer Care E-broking Executive.
 Financial Market Faculties.
 Financial Market Counselor.