A

PROJECT REPORT
ON:

STUDY OF SERVICES OF SHAREKHAN LTD TO INVESTOR

IN PORTFOLIO MANAGEMENT IN JABALPUR"

(Submitted in partial fulfillment for the Degree of MBA

to Rani DurgavatiVishwavidyalaya, Jabalpur)

SUBMITTED BY:
GUNJAN SAXENA
MBA IV Semester

GYAN GANGA INSTITUTE OF TECHNOLOGY AND SCIENCE

NEAR BARGI HILLS, TILWARA ROAD, JABALPUR (MP)

TO WHOMSOEVER IT MAY CONCERN

1

This is to certify that this Miss. GunjanSaxena is the student of MBA IV Semester at Gyan
Ganga Institute of Technology And Science, Jabalpur.
I hereby certify that the project work on Study of service of Sharekhan Ltd to investors in
portfolio management in Jabalpur is an original and genuine work carried out in the partial
fulfilment of the requirement of masters of business administration for the year 2013- 2015.
The information is true and original to the best of my knowledge.

DATE:
PLACE:

DR ANIL KUMAR DHAGAT

(DIRECTOR, MBA)

DECLARATION

I, GunjanSaxena, hereby declare that the dissertation work entitled Study of services of
Sharekhan Ltd to investor in portfolio management in Jabalpur is carried out by me and
submitted as under the requirement of Master of Business Administration degree from Gyan
Ganga Institute of Technology and Science, for the session 2013-2015.
I hereby authenticate that all the information furnished by me are true to my knowledge and
are based on my own findings and as per the information furnished to me by Sharekhan Ltd.

DATE:
PLACE:

GunjanSaxena
(MBA,IV SEM)
BATCH 2013-15

ACKNOWLEDGEMENT
3

I would like to thank my guide Mr. Anil KumarDhagat (Director of GGITS) for guiding me
through my research project. His encouragement, time and effort were greatly appreciated.
I would like to thank my family and all the faculty members at GGITS for supporting me
during this project and providing me an opportunity to learn outside the classroom. It was
truly a wonderful learning experience.
Lastly but not the least, I would like to thank all the respondents who offered their valuable
time and opinions towards the survey that helped me take out conclusions that lead to the
completion of the project.

Gunjan Saxena
(MBA, IV SEM)
BATCH 2013-15

TABLE OF CONTENT
EXECUTIVE SUMMAR

OBJECTIVE OF STUDY

10

INTRODUCTION

12

COMPANY PROFILE

19

RESEARCH &METHODOLOGY

29

DATA ANALYSIS & INTERPRETATION

30

RECOMMENDATION& SUGGESTION

33

CONCLUSION

56

FINDING

54

ANNEXURE

58

BIBLOGRAPHY

64

Executive
Summary

Executive Summary
Investing is both Arts and Science. Every Individual has their own specific financial need and
expectation based on their risk taking capabilities, whereas some needs and expectation are
universal. Therefore, we find that the scenario of the Stock Market is changing day by day
hours by hours and minute by minute. The evaluation of financial planning has been
increased through decades, which can be best seen in customers. Now a days investments
have become very important part of income saving.
In order to keep the Investor safe from market fluctuation and make them profitable, Portfolio
Management Services (PMS) is fast gaining Investment Option for the High Networth
Individual (HNI).There is growing competition between brokerage firms in post reform India.
For investor it is always difficult to decide which brokerage firm to choose.
The research design is analytical in nature. A questionnaire was prepared and distributed to
Investors. Theinvestors profile is based on the results of a questionnaire that theInvestors
completed. The Sample consists of 20 investors fromvarious brokers premises. The target
customers were Investorswho are trading in the stock market.
In order to identify the effectiveness of Sharekhan PMS services this Research is carried
throughout the area of Hyderabad. At the time of investing money everyone look for the Risk
factor involve in the Investment option. The Report is prepared on the basis of Research work
done through the different Research Mythology the data is collected from both the source
Primary sources which consist of Questionnaire and secondary data is collected from
different sources such as Company website, Magazine and other sources.
As the PMS services of Sharekhan Limited have the best result in its field .It has given
43.50% return in Trailing stops, 94.30%return in Nifty and 38.10% in Beta Portfolio which is
the result when the Market was not doing well from last one year.
In this project I have shown the details of financialplanning as well as wealth management so
as to understandabout the customers needs and wants with respect to marketand how a
clients portfolio can be designed and what factors aportfolio manager must consider for
designing a portfolio.

Objective
of the study

Objective Of The Study

To know the concept of Portfolio Management.
To know about the schemes offered by the differentinsurance companies, new IPOs,
Mutual Funds.
To know in depth about Insurance, Mutual Funds, Stock,Bonds etc.
To know about the awareness towards stock brokersand share market.
To study about the competitive position of Sharekhan Ltd in Competitive Market.

To study about the effectiveness & efficiency of Sharekhan Ltd in relation to its
competitors

To study about whether people are satisfied with Sharekhan Services & Management
System or not.
To study about the difficulties faced by persons while Trading in Sharekhan.
To study about the need of improvement in existing Trading system.

Scope of the Study

The study of the Portfolio Management Services is helpful in the following areas.
In today's complex financial environment, investors have unique needs which are
derived from their risk appetite and financial goals. But regardless of this, every
investor seeks to maximize his returns on investments without capital erosion.
Portfolio Management Services (PMS) recognize this, and manage the investments
professionally to achieve specific investment objectives, and not to forget, relieving
the investors from the day to day hassles which investment require.
It is offers professional management of equity investment of the investor with an aim
to deliver consistent return with an eye on risk.
Identify the key Stock in each portfolio.
To look out for new prospective customers who are willing to invest in PMS.
To find out the Sharekhan, PMS services effectiveness in the current situation.
It also covers the scenario of the Investment Philosophy of a Fund Manager.

Introduction

PORTFOLIO MANGEMNT SERVICES (PMS)

Portfolio (finance) means a collection of investments held by an institution or a private
individual. Holding a portfolio is often part of an investment and risk-limiting strategycalled
10

diversification. By owning several assets, certain types of risk (in particular specific risk) can
be reduced. There are also portfolios which are aimed at taking high risks theseare called
concentrated portfolios.
Investment management is the professional management of various securities (shares,bonds
etc) and other assets (e.g. real estate), to meet specified investment goals for thebenefit of the
investors. Investors may be institutions (insurance companies, pensionfunds, corporations
etc.) or private investors (both directly via investment contracts and more commonly via
collective investment schemes e.g. mutual funds).
The term asset management is often used to refer to the investment management ofcollective
investments, whilst the more generic fund management may refer to all forms ofinstitutional
investment as well as investment management for private investors. Investment managers
who specialize in advisory or discretionary management on behalf of (normally wealthy)
private investors may often refer to their services as wealthmanagement or portfolio
management often within the context of so-called "privatebanking".

The provision of 'investment management services' includes elements of financial analysis,

asset selection, stock selection, plan implementation and ongoing monitoring
ofinvestments.Outside of the financial industry, the term "investment management" is often
applied to investments other than financial instruments. Investments are often meant to
includeprojects, brands, patents and many things other than stocks and bonds. Even in this
case,the term implies that rigorous financial and economic analysis methods are used.

Needs of PMS

11

As in the current scenario the effectiveness of PMS is required. As

the PMS gives investors periodically review their asset allocation across different assets as
the portfolio can get skewed over a period of time. This can be largely due to appreciation /
depreciation in the value of the investments.
As the financial goals are diverse, the investment choicesalso need to be different to meet
those needs. No singleinvestment is likely to meet all the needs, so one should keepsome
money in bank deposits and / liquid funds to meet anyurgent need for cash and keep the
balance in other investmentproducts/ schemes that would maximize the return andminimize
the risk. Investment allocation can also changedepending on ones risk-return profile.

Objective of PMS
There are the following objective which is full filled by Portfolio Management Services.
12

1. Safety Of Fund: The investment should be preserved, not be lost,and should remain in the returnable
position in cash or kind.
2. Marketability: The investment made in securities should bemarketable that means, the securities
must be listed and tradedin stock exchange so as to avoid difficulty in their
encashment.
3. Liquidity: The portfolio must consist of such securities,which could be en-cashed without
any difficulty or involvementof time to meet urgent need for funds. Marketability
ensuresliquidity to the portfolio.
4. Reasonable return: The investment should earn a reasonable return toupkeep the declining value of
money and be compatible withopportunity cost of the money in terms of current
income in theform of interest or dividend.
5. Appreciation in Capital: The money invested in portfolio should grow andresult into capital gains.
6. Tax planning: Efficient portfolio management is concerned withcomposite tax planning covering
income tax, capital gain tax,wealth tax and gift tax.
7. Minimize risk: Risk avoidance and minimization of risk are important objective of portfolio
management. Portfoliomanagers achieve these objectives by effective
investmentplanning and periodical review of market, situation andeconomic
environment affecting the financial market.

TECHNOQUES OF PORTFOLIO MANAGEMENT

13

Various types of portfolio require different techniques tobe adopted to achieve the desired
objectives. Some of thetechniques followed in India by portfolio managers aresummarized
below.

(1). Equity portfolioEquity portfolio is affected by internal and externalfactors:

(a) Internal factors

Pertain to the inner working of the particular company ofwhich equity shares are held. These
factors generally include:
(1) Market value of shares
(2) Book value of shares
(3) Price earnings ratio (P/E ratio)
(4) Dividend payout ratio

(b) External factors

(1) Government policies
(2) Norms prescribed by institutions
(3) Business environment
(4) Trade cycles

(2). Equity stock analysis

The basic objective behind the analysis is to determinethe probable future value of the
shares of the concernedcompany. It is carried out primarily fewer than two ways. :
(a) Earnings per share
(b) Price earnings ratio

(A) Trend of earning: A higher price-earnings ratio discount expected profit growth. Conversely, a
downward trend in earning results in a low price-earnings ratio to discount
anticipated decrease in profits, price and dividend. Rising EPS causes appreciation in
price of shares, which benefits investors in lower tax brackets? Such investors have
not pay tax or to give lower rate tax on capital gains.
Many institutional investor like stability and growthand support high EPS.
Growth of EPS is diluted when a company financesinternally its expansion program
and offers new stock.
EPS increase rapidly and result in higher P/E ratiowhen a company finances its
expansion program from internalsources and borrowings without offering new stock.
14

(B) Quality of reported earning: Quality of reported earnings affects P/E ratio. The factorsthat affect the quality of reported
earnings are as under:
Depreciation allowances: Larger (Non Cash) deduction for depreciation providesmore funds to company to
finance profitable expansion schemesinternally. This builds up future earning power
of company.

Research and development outlets: There is higher P/E ratio for a company, which carries R&D programs. R&D
enhances profit earning strength of the company through increased future sales.

Inventory and other non-recurring type of profit: Low cost inventory may be sold at higher price due toinflationary conditions
among profit but such profit may notalways occur and hence low P/E ratio.

(C) Dividend policy: Dividend policy is significant in affecting P/E ratio. Withhigher dividend ratio, equity price
goes up and thus raises P/Eratio. Dividend rates are raised to push in share prices
up.Dividend cover is calculated to find out the time the dividend isprotected, In terms of
earnings. It is calculated as under:

Dividend Cover = EPS / Dividend per Share

(D) Investors demand: Demand from institutional investors for equity alsoenhances the P/E ratio.

(3) Quality of management: -

15

Investors decide about the ability and caliber ofmanagement and hold and dispose of equity
academy. P/E ratiois more where a company is managed by reputed entrepreneurswith good
past records of management performance.

Types of Portfolios
The different types of Portfolio which is carried by any Fund Manager to maximize profit and
minimize losses are different as per their objectives .They are as follows.
Aggressive Portfolio:
Objective: Growth. This strategy might be appropriate for investors who seek High growth
and who can tolerate wide fluctuations in market values, over the short term.
Growth Portfolio:
Objective: Growth. This strategy might be appropriate for investors who have a preference
for growth and who can withstand significant fluctuations in market value.
Balanced Portfolio:
Objective: Capital appreciation and income. This strategy might be appropriate for investors
who want the potential for capital appreciation and some growth, and who can withstand
moderate fluctuations in market values
Conservative Portfolio:
Objective: Income and capital appreciation. This strategy may be appropriate for investors
who want to preserve their capital and minimize fluctuations in market value.

16

Company Profile

Sharekhan is one of the leading retail brokerage of Citi Venture which is running successfully
since 1922 in the country. Earlier it was the retail broking arm of the Mumbai-based SSKI
Group, which has over eight decades of experience in the stock broking business. Share

17

khanoffers its customers a wide range of equity related services including trade execution on
BSE, NSE, Derivatives, depository services, online trading, investment advice etc.
Earlier with a legacy of more than 80 years in the stock markets, the SSKI group ventured
into institutional broking and corporate finance 18 years ago. SSKI is one of the leading
players in institutional broking and corporate finance activities. SSKI holds a sizeable portion
of the market in each of these segments. SSKIs institutional broking arm accounts for 7% of
the market for Foreign Institutional portfolio investment and 5% of all Domestic Institutional
portfolio investment in the country.
It has 60 institutional clients spread over India, Far East, UK and US. Foreign Institutional
Investors generate about 65% of the organizations revenue, with a daily turnover of over
US$ 2 million. The content-rich and research oriented portal has stood out among its
contemporaries because of its steadfast dedication to offering customers best-of-breed
technology and superior market information. Theobjective has been to let customers make
informeddecisions and to simplify the process of investing instocks

Missionof the Sharekhan is

To educate and empower the individual investor to make better investment decisions
through
QUALITY ADVICE
INNOVATIVE PRODUCTS and
SUPERIOR SERVICE.

WORK STRUCUTRE OF SHAREKHAN

Sharekhan has always believed in investing in technology to build its business. The company
has used some of the best-known names in the IT industry, like Sun Microsystems, Oracle,
18

Microsoft, Cambridge Technologies, Nexgenix, Vignette, Verisign Financial Technologies

India Ltd, Spider Software Pvt. Ltd. to build its trading engine and content. The Citi Venture
holds a majority stake in the company. HSBC, Intel & Carlyle are the other investors.
On April 17, 2002 Sharekhan launched Speed Trade and Trade Tiger, are net-based
executable application that emulates the broker terminals along with host of other information
relevant to the Day Traders. This was for the first time that a net-based trading station of this
caliber was offered to the traders. In the last six months SpeedTrade has become a de facto
standard for the Day Trading community over the net. Sharekhans ground network includes
over 700+ Shareshops in 130+ cities in India.
The firms online trading and investment site www.sharekhan.com - was launched on Feb 8,
2000. The site gives access to superior content and transaction facility to retail customers
across the country. Known for its jargon-free, investor friendly language and high quality
research, the site has a registered base of over 3 Lacs customers. The number of trading
members currently stands at over 7 Lacs. While online trading currently accounts for just
over 5 per cent of the daily trading instocks in India, Sharekhan alone accounts for 27 per
cent of the volumes traded online.
The Corporate Finance section has a list of very prestigious clients and has many firsts to its
credit, in terms of the size of deal, sector tapped etc. The group has placed over US$ 5 billion
in private equity deals.Some of the clients include BPL Cellular Holding, Gujarat Pipavav,
Essar, Hutchison, Planetasia, and Shoppers Stop.Finally, Sharekhan shifted hands and Citi
venture get holds on it.

PRODUCT AND SERVICES OFFERD BY SHAREKHAN

1- Equity Trading Platform (Online/Offline).
2- Commodities Trading Platform (Online/Offline).
3- Portfolio Management Service.
4- Mutual Fund Advisory and Distribution.
5- Insurance Distribution.
6-Forex

19

Benefits Of Sharekhan:
Free Depository A/c
20

Instant Cash Transfer

Multiple Bank Option.
Secure Order by Voice Tool Dial-n-Trade.
Automated Portfolio to keep track of the value of your actual purchases.
24x7 Voice Tool access to your trading account.
Personalized Price and Account Alerts delivered instantly to your Mobile Phone &

E-mail address.
Live Chat facility with Relationship Manager on Yahoo Messenger
Special Personal Inbox for order and trade confirmations.
On-line Customer Service via Web Chat.
Enjoy Automated Portfolio.
Buy or sell even single share
Anytime Ordering.

Sharekhan offers the following products:CLASSIC ACCOUNT

This is a User Friendly Product which allows the client to trade through website
www.sharekhan.com and is suitable for the retail investors who is risk-averse and hence
prefers to invest in stocks or who does not trade too frequently.
Features
Online

trading

account

for

investing

in

Equity

andDerivatives

via

www.sharekhan.com
Live Terminal and Single terminal for NSE Cash, NSE F&O & BSE.
Integration of On-line trading, Saving Bank and Demat Account.
Instant cash transfer facility against purchase & sale of shares.
Competitive transaction charges.
Instant order and trade confirmation by E-mail.
Streaming Quotes (Cash & Derivatives).
Personalized market watch.
Single screen interface for Cash and derivatives and more.
Provision to enter price trigger and view the same online in market watch.

SPEEDTRADE
SPEEDTRADE is an internet-based software application that enables you to buy and sell in
an instant. It is ideal for active traders and jobbers who transact frequently during days
session to capitalize on intra-day price movement.
Features
Instant order Execution and Confirmation.
Single screen trading terminal for NSE Cash, NSE F&O & BSE.
21

Technical Studies.
Multiple Charting.
Real-time streaming quotes, tic-by-tic charts.
Market summary (Cost traded scrip, highest clue etc.)
Hot keys similar to brokers terminal.
Alerts and reminders.
Back-up facility to place trades on Direct Phone lines.
Live market debts.

DIAL-N-TRADE
Along with enabling access for trade online, the CLASSIC and SPEEDTRADE ACCOUNT
also gives Dial-n-trade services. With this service, one can dial Sharekhans dedicated phone
lines 1800-22-7500, 3970-7500. Beside this, Relationship Managers are always available on
Office Phone and Mobile to resolve customer queries.
SHARE MOBILE
Sharekhan had introduced Share Mobile, mobile based software where one can watch Stock
Prices, Intra Day Charts, Research & Advice and Trading Calls live on the Mobile. (As per
SEBI regulations, buying-sellingshares through a mobile phone are not yet permitted.)
PREPAID ACCOUNT
Customers pay Advance Brokerage on trading Account and enjoy uninterrupted trading in
their Account. Beside this, great discount are also available (up to 50%) on brokerage.
Prepaid Classic Account: - Rs. 2000
Prepaid Speed trade Account: - Rs. 6000

IPO ON-LINE
Customers can apply to all the forthcoming IPOs online. This is quite hassle-free, paperless
and time saving. Simply allocate fund to IPO Account, Apply for the IPO and Sit Back &
Relax.

Mutual Fund Online

Investors can apply to Mutual Funds of Reliance, Franklin Templeton Investments, ICICI
Prudential, SBI, Birla, Sundaram, HDFC, DSP Merrill Lynch, PRINCIPAL and TATA with
Sharekhan.
Zero Balance ICICI Saving Account
22

Sharekhan had tied-up with ICICI bank for Zero Balance Account for Sharekhans Clients.
Now their customers can have a Zero Balance Saving Account with ICICI Bank after your
demat account creation with Sharekhan.

Sharekhan Portfolio Management Services

Sharekhan portfolio
management service

Pro Tech

Pro Prime

Pro
Arbitrage

Pro Prime
Product Approach
Investment will be keeping in mind 3 investment tenets.
1. Consistent, steady and sustainable returns.
2. Margin of Safety
3. Low Volatility

Product offering
23

Pro Prime is the ideal for investors looking at steady and superior with low and medium risk
appetite.
The portfolio consists of a blend of quality blue chip and growth stocks ensuring a balanced
portfolio with relatively medium risk profile.
The portfolio constitutes of relatively large capitalization stocks, based on sector and themes
which have medium to long term growth potential.

Product Characteristics

Bottom up stock selection

In depth ,independent fundamental research
High quality companies with relatively large capitalization
Disciplined valuation approach applying multiple valuation measure.
Medium to long term vision, resulting in low portfolio turnover.

How to invest?
Minimum Investment : 10 Lacs
Lock in : 6 months
Reporting: Access to website showing clients holding .Monthly reporting of portfolio
holding /transaction.
Charges: 2.5% pa AMC (Annual Maintenances Charges) fees charged every quarter ,
0.5% brokerage ,20% profit sharing after 15% hurdle is crossed chargeable at the end
of fiscal year.

Pro Arbitrage
Product Approach
An opportunity lies in basis which is the difference between cash and future. Whenever basis
is high we buy the stocks and sell the future to lock in difference .The difference is bound to
be zero at expiry.

Product Offered
Cash future arbitrage:
The product intends to spot low risk opportunities which will yield more than the normal low
risk product .Whenever such opportunity is spotted stocks will be bought and to lock in the
basis, future will be sold .This position will be liquated in the expiry or before that if the basis
vanishes early .Similarly the scheme will move on from opportunity to opportunity.

Product Characteristics
24

Low Risk:This is relatively low risk product which can be compared with liquid funds
issued by mutual funds.
High return: Compared with other low risk products, this products offers an indicative post
tax return of 8 to 10% plus.

Product Details
Minimum Investment:Rs.1 Crore
Lock in :6 months
Reporting: Fortnightly for portfolio Net worth, Monthly reporting pf portfolio
Holding /transaction.
Charges: 0.035% brokerage for future ,0.07% for delivery

Pro Tech
Protech using the knowledge of technique analysis and the power of depravities markets to
identify trading opportunities in the market .The protech line of the product is designed
around various risk /reward /volatility profiles for the different kind of investment needs.

Product Approach
Better performance is possible from superior market timing and from picking stocks before
inflation points in their trading cycles .Linear return are possible from having hedged/ sell
market positions in downtrends .Absolute return are targeted by focusing on finding trading
opportunities & not out performance of an index.

Product offered
1. Nifty Thirty :
Nifty futures will be bought and sold on the basis of an automated trading system
generated calls to go long/short. The exposure will never exceed the value of portfolio
i.e. no leveraging; but allows us to be short /hedged in Nifty in falling market
therefore allowing the client to earn irrespective of the market direction.
2. Beta Portfolio :
Positional trading opportunities are identified in the future segment based on
technical analysis .Inflection points in the momentum cycles are identified to go
long /short on stock/index futures with 1-2 months time horizon .The idea is to
generate the best possible return in the medium term irrespective of the direction of
the market without really leveraging beyond the portfolio value. Risk protection is
done based on stop losses on daily closing prices.

3. Star Nifty:
25

Swing trading technique and Dow theory is used to identify short term reversal
levels for Nifty futures and ride with trend both on the long and short side .This return
can be earned in bull and bear market .Stop and reverse means to reverse ones
position from long to short or vice a versa at the reversal levels simultaneously .The
exposure never exceeds value of portfolio i.e. there is no leveraging.
4. Trailing Stops.
Momentum trading techniques are used to spot short term momentum of 5-10
days in stocks and stocks /index futures .Trailing stop loss method of risk
management or profit protection is used tolower the portfolio volatility and maximize
return .Trading opportunities are exposed both on the long side and the short side as
the market demands to get the best of both upward and downward trends.
Product Characteristics

Using swing based index trading systems stop and reverse .trend following and
momentum trading technique.

Nifty based products for low impact cost and low product volatility
Both long and short strategies to earn returns even in falling market.
Trading in future market to allow for active risk protection using trailing stop losses

How to invest?
Minimum : Rs.10 Lacs

Lock in : 6 months
Reporting: Fortnightly reporting of portfolio Net Worth, monthly reporting of
portfolio Holding /Transaction.
Charges: 0% AMC (Annual Maintenance Charges), 0.05% brokerage for
derivatives, 20% profit sharing on booked profit quarterly basis

26

27

Research Methodology

RESEARCH DESISGN OF THE STUDY

This report is based on primary , however primary datacollection was given more importance
since it is overhearing factor in attitude studies.One of the most important users of research
methodology is that it helps in identifyingthe problem, collecting, analysing the required
information data and providing analternative solution to the problem .It also helps in
collecting the vital information thatis required by the top management to assist them for the
better decision making bothday to day decision and critical ones.
The study consists of analysis about Investors Perception about the Portfolio Management
Services offered by Sharekhan Limited. For the purpose of the study 50 customers were
picked up at random and their views solicited on different parameters.
The methodology adopted includes
Questionnaire
Discussions with the concerned

SOURCES OF DATA
28

 Primary data: Questionnaire

SAMPLING PLAN
Sampling:
Since Sharekhan Limited has many segments I selected Portfolio Management Services
(PMS) segment as per my profile to do market research. 100% coverage was difficult within
the limited period of time. Hence sampling survey method was adopted for the purpose of the
study.
Population:
(Universe) customers & non consumers of Sharekhan limited
Sampling size:
A sample of fifty was chosen for the purpose of the study. Sample consisted of Investor as
based on their Income and Profession as well as Educational Background.
Sampling Methods:
Probability sampling requires complete knowledge about all sampling units in the universe.
Due to time constraint non-probability sampling was chosen for the study.
Sampling procedure:
From large number of customers & non consumers sample lot were randomly picked up by
me.
Field Study:
Directly approached respondents by the following strategies

Tele-calling
Clients References
Promotional Activities
Database provided by the Sharekhan Limited website

29

Data Analysis
30

&
Interpretation

Question:1
Do you know about the Investment Option available?

31

KNOWLEDGE ABOUT INVESTMENT OPTION

15%

YES
NO
85%

ANALYSIS:
This chart shows the awareness among the people of Jabalpur regarding various
investment options available in the market. Most of the respondent shows the interest
toward the investment option but some of theremainingpeople take his/her residential
property as an investment.This is not an investment because of it is not
create any profit for the owner.

Question:2
What is the basic purpose of your Investments?

32

PURPOSE OF YOUR INVESTMENTS

10%

10%

LIQUIDITY

30%

TAX BENEFITS

5%

20%

RETURN
RISK COVERING

25%

CAPITAL APPRECIATION
OTHER

ANALYSIS:
As per the above chart, it is found 75%peoples are interested in liquidity, returns,
and tax benefits
.And remaining 25% are interested in capital appreciations, risk covering, and
others. In the entire
Respondent it is common that this time everyone is looking for minimizing the
risk and maximizing
Their profit with the short time of period.

Question: 3
What is the most important factor you consider at the time of Investment?
33

FACTOR CONSIDERED

12%
23%
65%

RISK
RETURN
BOTH

ANALYSIS:
This analysis gives the clear idea that most of the Investors considered the market factor as
around 12% for Risk and 23% Return, but most important common things in all are that they
are even ready for taking both Risk and Return in around 65% investor. So, that they can
achieve high rate of return behalf of high risk.

Question:4
34

From which option you will get the best returns?

BEST RETURN

14%

MUTUAL FUND

20%

SHARES
COMMODITIES MARKET

18%
22%

8%
16%

BONDS
FIXED DEPOSIT
PROPERTY

ANALYSIS:

Most of the respondents say they will get more returns in Share Market. Since Share Market
is said to be the best place to invest to get more returns. The risk in the investment is also
high. Similarly, the Investor are more Interested in Investing their money in Mutual Fund
Schemes as that is also very important financial product due to its nature of minimizing risk
andmaximizing the profit. As the commodities market is doing well from last few months so
Investor also prefer to invest their money in Commodities Market basically in GOLD
nowadays. Moreover, even who dont want to take Risk they are looking for investing in
Fixed Deposit for long period of time.

QUESTION:5
35

Investing in PMS is far safer than Investing in Mutual Fund. Do you agree?
OPINION

24%
YES
NO

76%

ANALYSIS:
In the above graphs its clear that 24% of respondent out of hundred feel that investing their
money in Mutual Fund Scheme are far safer than Investing in PMS. this is because of lack of
proper information about the Portfolio management services. As the basis is same for the
mutual fund and PMS but the investment pattern is totally different from each other and
which depends upon different risk factor available in both the Financial Products.

Question:6
36

How much you carry the expectation in Rise of your Income from Investments?

EXPECTATION OF RISE INCOME

12%

8%
UP TO155

48%

15-25%
25-35%

32%

MORE THAN 35%

ANALYSIS:
This analysis shows the optimism is shown in the attitude of the respondents. The confidence
was appreciable with which they are looking forward to a rise in their investments. Major part
of the sample feels that the rise would be of around 15%. Only 8% of the respondents were
confident enough to expect a rise of upto 35%.As all the respondents were also considering
the Risk factor

37

Question:7
If you invested in Share Market, what has been your experience?
YOUR EXPERIENCE

33%
5%

17%

SATISFACTORY RETURN
BURNED FINGER

45%

UNSATISFACTORY
RESULTS
NO

ANALYSIS:
20% of the respondents have invested in Share market and received satisfactory returns, 40%
of the respondents have not at all invested in Share Market. Some of the investors face
problems due to less knowledge about the market. Some of the respondents dont have
complete overview of the happenings and invest their money in wrong shares which result in
Loss. This is the reason most of the respondents prefer Portfolio Management Services to
tradenow a days, which gives the Investor the clear idea when is the right time to buy and
right time to sell the shares which is recommended by their Fund Manger.

38

Question:8
How do you trade in Share Market?

TRADE IN SHARE MARKET

24%

31%

HEDGING
SPECULATION
INVESTMENT

45%

ANALYSIS:
As we know that Share market is totally based on psychological parameters of Investors,
which changed as per the market condition, but at the same time the around 45% investor
trade on the basis of speculation and 31% depend upon Investment option Bonds, Mutual
Funds etc.
Moreover, the now a days Hedging is most common derivatives tools which is used by the
Investor to get more return from the Market ,this is mostly used in the Commodities Market.

39

Question:9
How do you manage your Portfolio?
MANAGE YOUR PORTFOLIO

10%
15%

35%

ON YOUR OWN
EXPERT OPINION
ON FRIEND ADVICE

22%

BROKER ADVICE

18%

OTHER

ANALYSIS:
About 35%of the respondents say they themselves manage their portfolio and 22% of the
respondentare depend on friend advice but other all of the respondents say they depends on
the security company for portfolio Management. the respondents prefer PMS of the company
because they dont have to keep a close eye on their investment; they get all the information
time to time from their Fund Manager.
Moreover, talking about the Sharekhan PMS services they are far satisfied with the Protech
and Prop rime Performance during last year. They are satisfied with the quick and active
services of Sharekhan customer services where, they get the updated knowledge about the
scrip detail everyday from their Fund Manager.

40

Question:10
Are you using Portfolio Management services (PMS) of Sharekhan?
USING(PMS)

44%
56%

YES
NO

ANALYSIS:

As talking about the Investment option, in most of clients it was common that they know
about the Option but as the PMS of Sharekhan have different Product offering, Product
Characteristics and the Investment amount is also different this makes the clients to think
differently. It is found that 56% of Sharekhan client where using PMS services as for their
Investment Option.

41

Question:11
The motive for making investment in capital market
MOTIVE FOR INVESTMENT

15%
INTEREST

20%

TAX PLANNING
65%

CAPITAL GAIN

ANALYSIS:
This analysis shows that most of the investor motive to get the high rate of interest by
investment in capital market. And some of the investors motive for tax planning and utilised
their capital for continuous rotation in the market. But remaining other investor have the
proper knowledge of the market so that their purpose for investment to get more and more
capital gain from their investment.

42

Question:12
The factor they consider while selecting a sharekhan?
SELECTING

15%
35%
22%

RESEARCH
BROKERAGE
SERVICES
INVESTMENTS TIPS

28%

ANALYSIS:
As the above research shows the reasons and the parameters on which investor lie on
Sharekhan and they do the trade.Among the respondents 35% respondents do the trade with
the company due to its research Report, 28% based on Brokerage Rate whereas 22 % are
happy with its Services.Last but not the least, 15% respondents are depends upon the tips of
Sharekhan which gives them idea where to invest and when to invest.
At the time of research what I found is that still Sharekhan need to make the clients
more knowledge about their PMS product

43

Question:13
Which portfolio type you preferred?
PORTFOLIO PREFERRED

28%
45%

EQUITY
DEBT
BALANCED

27%

ANALYSIS:
The above analysis shows, in which portfolio the investor like to deal more in PMS. As 45%
investor likes to go for Equity Portfolio and 28% with Balanced Portfolio, whereas around
27% investor like to, go for Debt Portfolio.

44

Question:14
How was your experience about Portfolio Management services (PMS) of Sharekhan
Limited?
EXPERIENCE

30%

EARNED

52%
18%

FACED LOSS
NO PROFIT NO LOSS

ANALYSIS:
In the above analysis it is clear that the Investor have the good and the bad experience both
with the Sharekhan PMS services.In this current scenario 52% of the Investor earned,
whereas around 18% have to suffer losses in the market. Similarly 30% of the Respondents
are there in Breakeven Point (BEP), where no loss and no profit.

45

Question:15
Does Sharekhan Limited keep it PMS process Transparent?
TRANSPARENCY IN PROCESS

36%
YES

64%

NO

ANALYSIS:
The above analysis is talking about the Sharekhan Transparency of their PMS services. In
the respondents 64% said that they get all the information about their scrip buying and
selling information day by day, where as 36% of respondents are not satisfied with the PMS
information and Transparency because they dont get any type of extra services in PMS as
they were saying.

46

Question:16
Do you recommend sharekhan PMS to others?
RECOMMEND

14%

YES
NO

86%

ANALYSIS:
The above analysis shows the Investor perception toward the Sharekhan PMS as on the basis
of their good and bad experience with Sharekhan limited. Among the respondents 86%
respondents were agree to recommend the PMS of Sharekhan to their peers, relatives etc.

47

Question:17
What would you grade to customer relationship management of shareholder?
GRADE TO CUSTOMER RELATIONSHIP MGMNT

10%

6%
A
52%

32%

B
C
D

ANALYSIS:
This analysis shows the customer satisfaction towards the customer relationship management
of shareholder. According to the grade it can be easy to analyze the need for changes in the
system or not .so, it is clearly shows that the 52% of customer are fully satisfied with CRM.
And 32% of customer feel good with the service. Other have some issues or bad experience
with lack of proper knowledge. Time managing etc.

48

Question:18
What gradewould you give to the customer objection handling management of sharekhan?
CUSTOMER OBJECTION

8%
12%
A
50%

B
C

30%

ANALYSIS:
This analysis shows the satisfaction of the customer towards there queries and getting the
feasible solution of their objection. So , 50% of the customer are fully satisfied with their
solutions and 30% feel happy with the sharekhan management.12% are neutral and 8%
customer not satisfied because of lack of coordination between the customer and
management of sharekhan.

49

Question:19
Are you satisfied with the result of your complaints at sharekhan?
RESULT OF YUR COMPLAINTS

14%

5%

COMPLETELY SATISFIED

53%
28%

SATISFIED
IN BETWEEN
NOT SATISFIED

ANALYSIS:
Above chart shows the satisfaction level of the customer towards their complaints and it is
clearly understood by the chart that 53%customers are completely satisfied with the
sharekhan.28% are satisfied and 14% are neutral with their views .But 5% customer are not
satisfied because of loss or lack of knowledge.

50

Question:20
Which service of taking customer complaints is best at sharekhan?
SERVICE OF TAKING CUSTOMER COMPLAINTS

5%

10%

TOLL FREE PHONE

CALLS

20%

EMAIL

65%

VISITING
PERSONAL VISIT

ANALYSIS:
Most of the customer used the toll free number for contacting the executive of sharekhan for
their complaints. Now a days Email also having a source of taking customer complaints in
thesharekhan. But some customer dont believe in such type of service so they can prefer
personal visit in the company for their issues and complaints.

51

CONCULSION
AND
SUGGESTIONS

52

OBSERVATION AND FINDING

About 85% Respondents knows about the Investment Option, because remaining 15%
take his /her residential property as Investment, but in actual it not an investment
philosophy carries that all the Investment does not create any profit for the owner.
More than 75% Investors are investing their money for Liquidity, Return and Tax
benefits.
At the time of Investment the Investors basically considered the both Risk and Return
in more %age around 65%.
As among all Investment Option for Investor the most important area to get more
return is share around 22%after that Mutual Fund and other comes into existence.
More than 76% of Investors feels that PMS is less risky than investing money in
Mutual Funds.
As expected return from the Market more than 48% respondents expect the rise in
Income more than 15%, 32% respondents are expecting between 15-25% return.
As the experience from the Market more than 34% Investor had lose their money
during the concerned year, whereas 20% respondents have got satisfied return.
About 45% respondents do the Trade in the Market with Derivatives Tools
Speculation compare to 24% through Hedging .And the rest 31% trade their money in
Investments.
Around 57% residents manage their Portfolio through the different company whereas
43%Investor manage their portfolio themselves.
The most important reasons for doing trade with Sharekhan limited isSharekhan
Research Department than its Brokerage rate Structure.
Out of hundred respondents 56% respondents are using Sharekhan PMS services.
Investors preferred more than 45% equity Portfolio, 28%Balanceed Portfolio and
about 27% Debt Portfolio with Sharekhan PMS.
About 52% Respondents earned through Sharekhan PMS product, whereas 18%
investor faced loses also.
More than 63% Investor are happy with the Transparency system of Sharekhan
limited.

53

 As based on the good and bad experience with Sharekhan limited around 86% are
ready to recommended the PMS of Sharekhan to their peers, relatives etc.

LIMITATION OF THE PROJECT

As only Jabalpur was dealt in the survey so it does not represent the view of the
total Indian market.
The sample size was restricted with hundred respondents.
There was lack of time on the part of respondents.
The survey was carried through questionnaire andthe questions were based on
perception.
There may be biasness in information by marketparticipant.
Complete data was not available due to companyprivacy and secrecy.
Some people were not willing to disclose the investment profile.

CONCLUSION AND SUGGESTIONS

On the basis of the study it is found that Sharekhan Ltd is better services provider than the
other stockbrokers because of their timely research and personalized advice on what stocks to
buy and sell. Sharekhan Ltd. provides the facility of Trade tiger as well as relationship
manager facility for encouragement and protects the interest of the investors. It also provides
the information through the internet and mobile alerts that what IPOs are coming in the
market and it also provides its research on the future prospect of the IPO.We can conclude the
following with above analysis.
Sharekhan Ltd has better Portfolio Management services than Other Companies
It keeps its process more transparent.
Itgives more returns to its investors.
It charges are less than other portfolio Management Services
Itprovides daily updates about the stocks information.

Investors are looking for those investment options where they get maximum
returnswith less returns.

Market is becoming complex & it means that the individual investor will not havethe
time to play stock game on his own.

54

 People are not so much ware aware about the Investment option available in the
Market.

Suggestions
The company should also organize seminars and similar activities to enhance the
knowledge of prospective and existing customers, so that they feel more comfortable
while investing in the stock market.
Investors must feel safe about their money invested.
Investors accounts must be more transparent as compared to other companies.
Sharekhan limited must try to promote more its Portfolio Management Services
throughAdvertisements.
Sharekhan needs to improve more its Customer Services
There is need to change in lock in period in all three PMS i.e .Protech, Proprime, Pro
Arbitrage.

55

ANNEXURE
QUESTIONNAIRE

NAME.
AGE
OCCUPATION...
PHONE NO..................................

1. Do you know about the Investments Option available?

YES
NO
2. What is the basic purpose of your Investments?

Liquidity
Return
Tax Benefits
Risk Covering
Capital Appreciation
Others

3. What is the most important factor you consider at the time of Investment?
Risk
Return
Both
4. From which option you will get the best returns?

Mutual Funds
Shares
Commodities Market
Bond
Fixed Deposits
56

 Property
Others

5. Investing in PMS is far safer than Investing in Mutual Fund. Do you agree?
Yes
No

6. How much you carry the expectation in Rise of your Income from Investments?

Upto 15%
15-25%
25-35%
More than 35%

7. If you invested in Share Market, what has been your experience?

Satisfactory Return
Burned Finger
Unsatisfactory Results
No

8. How do you trade in Share Market?

Hedging
Speculation
Investment
9. How do you manage your Portfolio?

On Your Own
Expert Opinion
On Friend Advice
Broker Advice
Other

10. Are you using Portfolio Management services (PMS) of Sharekhan?

Yes
57

 No

11. The motive for making investment in capital market?

Regular Income In The Form Of Dividend/ Interest
Tax Planning
Capital Gain

12. The factor they consider while selecting a sharekhan?

Research
Brokerage
Services
Investments Tips

13. Which Portfolio Type you preferred?

Equity
Debt
Balanced

14. How was your experience about Portfolio Management services (PMS) of Sharekhan
Limited?
Earned
Faced Loss
No profit No loss

15. Does Sharekhan Limited keep it PMS process Transparent?

Yes
No

16. Do you recommend Sharekhan PMS to others?

58

 Yes
No
17. What would you grade to customer relationship management of sharekhan?

A
B
C
D

18. What would you grade to customer objection handling management of sharekhan ?

A
B
C
D
E

19. Are you satisfied with result of your complaints at sharekhan?

Completely Satisfied
Satisfied
In Between
Not Satisfied

20. Which service of taking customer complaints is best at sharekhan?

Toll Free Phone Calls

Email
Visiting
Personal Visit

59

Bibliography
REFERENCES

www.sharekha.com
www.sebi.gov.in
www.moneycontrol.com
www.karvy.com
www.valueresarchonline.com
www.yahoofinance.com
www.theeconomist.com
www.nseindia.com
www.bseindia.com

Book Referred

Value guide by Sharekhan

Investors Eyes by Sharekhan
Business world.
The economist

60