EXECUTIVE SUMMARY

The summer internship of a management student plays an important role to develop her/him into
a well groomed professional. It gives theoretical concepts a practical shape in the field of
applications. The opportunity of doing summer training at Anand Rathi, Jaipur which is one of
Indias leading financial services firm, was a new experience to work in a corporate environment.
It offers Wealth Management, Investment Banking, Corporate Finance & Advisory, Brokerage &
Distribution services in the areas of equities, commodities, mutual funds, structured products,
insurance, corporate deposits, bonds & loans to institutions, corporations, high-net worth
individuals and families.
As an intern got the opportunity to work as a financial advisor and tell the clients through cold
calling about the benefits of investing in Systematic Investment Plan (SIP), Term Plans and
Health Insurance. Then I had to inform those clients whose account have become dormant, to
invite the clients for the investors meet, to request the clients to trade who have holdings left in
their account, to pay the annual charges, to request the clients to trade in future and options, to
clear t5 debit balance and to request the clients to open new Demat account for any family
members or relatives. Then I was also given to fill the forms of IPO (Initial Public Offer). After
filling the forms they had to be rechecked. Then forms of Demat and trading account, SIP forms
and forms of activating the dormant accounts were also given to be filled up. I had to update the
profiles of the clients as well. I had to make confirmation of trade of a particular day and I also
prepared a questionnaire for employee test on the topic Health Insurance.
The project at Anand Rathi dealt with Investors perception on investment tools or avenues in
Jaipur. India presents a lot of investment avenues to the investors and all the investment
avenues or tools that are available in the market have their own strengths and weaknesses. The
main purpose of this topic is to find out where the investors would like to invest the most, to
understand the factors those are to be considered by the investors during investment, to find out
how investors get information about the various financial instruments and to find out the duration
for which they would prefer to keep their money invested.

Working with Anand Rathi was also a great learning experience. My major key learnings were I
learned about the execution of trade in stock market and how the confirmation is done, learned
the software used for trading which is called nest, about various markets, about IPOs, Demat
A/Cs, dormant accounts and requirements of filling them., about the behavior of customers
through cold calling, learned about IB tracking and about mutual funds, shares, future & options
and insurance in details.
The report includes and provides information about the various avenues or tools that are
available in the market and the perception of the investors before investing in the tools or
avenues. Finally the findings, conclusions and suggestions are out of this project are shared.
The internship was a learning curve in my career. It helped me to learn about execution of the
trade in stock market, the behavior of the customers through cold calling and gave an invaluable
experience and opportunity to be a part of one of the Indias leading financial services firm.

Chapter 1: Introduction

Chapter 1: Introduction
1.1 Investment: A crucial activity of every human being
In this modern era, money plays an important role in ones life. In order to overcome the
problems in future they have to invest their money. Investment of hard earned money is a crucial
activity of every human being. Investment is the commitment of funds which have been saved
from current consumption with the hope that some benefits will be received in future. Thus, it is
a reward for waiting for money. Savings of the people are invested in assets depending on their
risk and return demands, Safety of money, Liquidity, the available avenues for investment,
various financial institutions, etc. Investment is a purchase of a financial product or other item of
value with an expectation of favorable future returns. Investing is a serious subject that can have
a major impact on investors future well-being. Investors have a lot of investment avenues to
park their savings. The risk and returns available from each of these investment avenues differ
from one avenue to another. Even if the individual does not select specific assets such as stock,
investments are still made through participation in pension plan, and employee saving
programme or through purchase of life insurance or a home. In India, many investment avenues
are available where some are marketable and liquid while others are non-marketable and some of
them are highly risky while others are almost riskless. The investor has to choose Proper Avenue
depending upon his specific need, risk preference, and returns expected.
1.2 The Different investment avenues are:
1. Safe/Low Risk Avenues: Savings Account, Bank Fixed Deposits, Public Provident fund,
Government Securities, etc.
2. Moderate Risk Avenues: Mutual Funds, Life Insurance, Debentures, Bonds.
3. High Risk Avenues: Equity Share Market, Commodity Market, FOREX Market.
4. Traditional Avenues: Real Estate, Gold/Silver, Chit Funds.

1. Safe/Low Risk Avenues:

4

Savings Account: Saving accounts are accounts maintained by retail financial

institutions that pay interest but cannot be used directly as money in the narrow sense of
a medium of exchange. These accounts let customers set aside a portion of their liquid
assets while earning a monetary return. For the bank, money in a savings account may
not be callable immediately and, in some jurisdictions, does not incur a reserve
requirement. Cash in the bank's vaults may thus be used, for example, to fund interestpaying loans

Bank Fixed Deposits : A fixed deposit (FD) is a financial instrument provided by banks
which provides investors with a higher rate of interest than a regular savings account,
until the given maturity date. It may or may not require the creation of a separate account.
They are considered to be very safe investments. Term deposits in India and Pakistan is
used to denote a larger class of investments with varying levels of liquidity. The defining
criteria for a fixed deposit are that the money cannot be withdrawn from the FD as
compared to a recurring deposit or a demand deposit before maturity. Some banks may
offer additional services to FD holders such as loans against FD certificates at
competitive interest rates. It's important to note that banks may offer lesser interest rates
under uncertain economic conditions. The interest rate varies between 4 and 11 percent.
The tenure of an FD can vary from 7, 15 or 45 days to 1.5 years and can be as high as 10
years.

Public Provident fund: The Public Provident Fund is a savings-cum-tax-saving

instrument in India, introduced by the National Savings Institute of the Ministry of
Finance in 1968.The aim of the scheme is to mobilize small savings by offering an
investment with reasonable returns combined with income tax benefits

Government Securities: A government security is a bond issued by a government

authority with a promise of repayment upon maturity. Government securities such as
savings bonds, treasury bills and notes also promise periodic coupon or interest
payments. These securities are considered low-risk, since they are backed by the taxing
power of the government.

2. Moderate Risk Avenues:

5

Mutual Funds: A mutual fund is an investment vehicle that is made up of a pool of

funds collected from many investors for the purpose of investing in securities such as
stocks, bonds, money market instruments and similar assets. Mutual funds are operated
by money managers, who invest the fund's capital and attempt to produce capital
gains and income for the fund's investors. A mutual fund's portfolio is structured and
maintained

to

match

the

investment

objectives stated

in

its prospectus.

Life Insurance: Life insurance, is a contract between an insurance policy holder and
an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of
money in exchange for a premium, upon the death of an insured person. Depending on
the contract, other events such as terminal illness or critical illness can also trigger
payment. The policy holder typically pays a premium, either regularly or as one lump
sum. Other expenses (such as funeral expenses) can also be included in the benefits

Debentures:

In corporate

finance,

a debenture is

medium

to

long-term

debt instrument used by large companies to borrow money, at a fixed rate of interest. The
legal term "debenture" originally referred to a document that either creates a debt or
acknowledges it, but in some countries the term is now used interchangeably
with bond, loan stock or note. A debenture is thus like a certificate of loan or a loan bond
evidencing the fact that the company is liable to pay a specified amount with interest and
although the money raised by the debentures becomes a part of the company's capital
structure, it does not become share capital. Senior debentures get paid before subordinate
debentures, and there are varying rates of risk and payoff for these categories.

Bonds: In finance, a bond is an instrument of indebtedness of the bond issuer to the

holders. It is a debt security, under which the issuer owes the holders a debt and,
depending on the terms of the bond, is obliged to pay them interest (the coupon) and/or to
repay the principal at a later date, termed the maturity date. Interest is usually payable at
fixed intervals (semiannual, annual, and sometimes monthly).

3. High Risk Avenues:

Equity Share Market: A stock market, equity market or share market is the aggregation
of buyers and sellers (a loose network of economic transactions, not a physical facility or
discrete entity) of stocks (also called shares); these may include securities listed on
a stock exchange as well as those only traded privately.

Commodity Market: A commodity market is a market that trades in primary economic

sector rather than manufactured products. Soft commodities are agricultural products
such

as wheat, coffee, cocoa and sugar.

Hard

commodities

are

mined,

such

as gold and oil. Investors access about 50 major commodity markets worldwide with
purely financial transactions increasingly outnumbering physical trades in which goods
are delivered. Futures contracts are the oldest way of investing in commodities. Futures
are secured by physical assets.Commodity markets can include physical trading and
derivatives trading using spot prices, forwards, futures, and options on futures. Farmers
have used a simple form of derivative trading in the commodity market for centuries for
price risk management.

FOREX Market: The foreign exchange market (forex, FX, or currency market) is a
global decentralized market for the trading of currencies. This includes all aspects of
buying, selling and exchanging currencies at current or determined prices. In terms of
volume of trading, it is by far the largest market in the world. The main participants in
this market are the larger international banks. Financial centres around the world function
as anchors of trading between a wide range of multiple types of buyers and sellers around
the clock, with the exception of weekends. The foreign exchange market does not
determine the relative values of different currencies, but sets the current market price of
the value of one currency as demanded against another.

4. Traditional Avenues:

Real Estate: Investment real estate is real estate that generates income or is otherwise
intended for investment purposes rather than as a primary residence. It is common for
investors to own multiple pieces of real estate, one of which serves as a primary
residence, while the others are used to generate rental income and profits through price

appreciation. The tax implications for investment real estate are often different than those
for residential real estate.

Gold/Silver: Silver, like other precious metals, may be used as an investment. For more
than four thousand years, silver has been regarded as a form of money and store of value.
However, since the end of the silver standard, silver has lost its role as a legal tender in
all developed countries, although some countries mint bullion and collector coins like
the American Silver Eagle with nominal face values. Of all the precious metals, gold is
the most popular as an investment. Investors generally buy gold as a way of diversifying
risk, especially through the use of futures contracts and derivatives. The gold market is
subject to speculation and volatility as are other markets. Compared to other precious
metals used for investment, gold has the most effective safe haven and hedging properties
across a number of countries

Chit Funds : A Chit fund is a kind of savings scheme practiced in India. A chit fund
company is a company that manages, conducts, or supervises such a chit fund, as defined
in Section of the Chit Funds Act, 1982. According to Section 2(b) of the Chit Fund Act,
1982: Chit means a transaction whether called chit, chit fund, chitty, kuree or by any
other name by or under which a person enters into an agreement with a specified number
of persons that every one of them shall subscribe a certain sum of money (or a certain
quantity of grain instead) by way of periodical installments over a definite period and that
each such subscriber shall, in his turn, as determined by lot or by auction or by tender or
in such other manner as may be specified in the chit agreement, be entitled to the prize
amount"

The individual investor should not always follow the majority. They should try to search about
his investments before investing. The investors should focus on safe investment avenues. The
people should develop the habit of making investment at any stage of life. Saving money is an
old method so the people should invest their money in order to get maximum returns. The
investors should have full knowledge of the investment options in order to avoid any loss in

future. The investor should be alert what, where, why, when and how to make investment in
different investment options.

Chapter 2: Organization Overview

Chapter 2: Organization Overview

2.1 Anand Rathi Group At a glance!

Founded by Mr. Anand Rathi & Mr. Pradeep Gupta in 1994.

Tag line of Anand Rathi: Behind every successful investor:

Logo:
Leading full service investment bank offering a wide range of financial services and

wealth management solutions.

Caters across different segments of investors: Institutions, corporation, HNI & families.
10

Overseas presence through office in Dubai.

The organization philosophy is entirely client centric with a clear focus on providing long
terms value additions with the highest standards of excellence, ethics and

professionalism.
In year 2007 Citigroup Venture Capital International joined the group as a financial

partner. Now they are a 100% owned company.

The Anand Rathi Group is member of the BSE, NSE, Multi-Commodity Exchange ,
National Commodity Exchange , United Stock Exchange , Central Depository Services

Ltd., National Securities Depository Limited and ARN holder.

Milestones
1994: Started activities in consulting and Institutional equity sales with staff of 15
1995: Set up a research desk and empanelled with major institutional investors
1997: Introduced investment banking businesses
Retail brokerage services launched
1999: Lead managed first IPO and executed first M & A deal
2003: Wealth Management assets cross Rs1500 crores
Insurance broking launched
Launch of Wealth Management services in Dubai
Retail Branch network exceeds 50
2004 :Commodities brokerage and real estate services introduced
Wealth Management assets cross Rs3000crores
Retail Branch network expands across 100 locations within India
2005: Real Estate Private Equity Fund Launched
Retail Branch network expands across 200 locations within India
2006: Ranked amongst South Asia's top 5 wealth managers for the ultra-rich
Ranked 6th in FY2006 for All India Broker Performance in eq. distribution
Ranked 9th in the Retail Category having more than 5% market share
Completes its presence in all States with offices at 300+locations in India
2007: Citigroup Venture Capital International picks up 19.9% equity stake
Retail customer base crosses 200 thousand
Establishes presence in over 450 location

Places where Anand Rathi is present in India

Andhra Pradesh
Assam
Bihar
Chhattisgarh
Delhi
Goa
Gujarat

Haryana
Jammu & Kashmir
Jharkhand
Karnataka
Kerala
Madhya Pradesh
Maharashtra
11

Orissa
Punjab
Rajasthan
Tamil Nadu
Uttar Pradesh
Uttaranchal
West Bengal

Group Structure of Anand Rathi

Anand Rathi Financial Services Limited

Anand

Anand Rathi

Anand

Anand

Anand Rathi

Anand

Anand

Rathi

Commodities

Rathi

Rathi

Venture

Rathi

Rathi

Stock

Limited

Insurance

Global

Funds

Wealth

Financial

Brokers

Brokers

Finance

Management

Advisors

Services

Limited

Limited

Limited

Limited

Limited

(HK)
Limited

Anand Rathi
Anand
Rathi IT

Anand

Middle East

Rathi

DMCC

Pvt. Ltd

Advisors
Limited

Group Overview
Client base- 360000+
Direct employees- 2000+
Registered Sub-brokers-1000+
Office presence-1200+
12

 Locations-300+
International presence-1

2.2 Vision, mission, approach and values of Anand Rathi

Vision:

Mission: To be India's first Multinational providing complete financialservices solution across

the globe
Approach: Client centric, Solutions & long term focused, research & relationship driven.
Values: Customer Centricity, Team Work, Innovation, Respect.

2.3 Competitors of Anand Rathi

Karvy
Smc
India bulls
Unicon
Parasram
Arihant
Annagram
Religare
Kotak securities
R K global
Angel broking
13

 Reliance money
ICICI Direct

2.4 Products & services offered by Anand Rathi

Products offering:
Equities: Anand Rathi offers end-to-end equity solutions to individual Investors and
active Traders serving them with quality advice on individual stocks, sector trends and
investment strategy.
Derivatives: Anand Rathi offers basket of all the Derivative trading ideas including
intraday trades to monthly position expiry call on stock and indices with a better accuracy
and risk reward ratio. An event based option strategy to get the benefit of volatile move
with less risk.
Commodities: At Anand Rathi, they have experienced professionals who form
investment strategies related to commodity trading. Commodity Futures are one of the
most active forms of investment trading today. Some Investors choose to engage solely in
Commodity futures as a means of generating revenue from an investment portfolio.
Currencies: When it comes to exchange traded currency futures, the specialized team at
Anand Rathi helps its Clients take informed trading decisions. Other than this, they offer
with Quality Research, Better Execution, Robust Trading System and Back-office Access
(24x7).
PMS: A professional service which is often opted by wealthy investors who want
exposure to a variety of asset classes and who understand that investment in the market,
requires time, knowledge, and constant monitoring. It also needs strong research and
solid experience to make the right decision. Its imperative, that one needs to hit the right
timing of the investment. Investors can opt for discretionary services for the investments
to be managed by the portfolio managers or they can go for customized tailor made nondiscretionary service as per their investment needs.
Structured products: At Anand Rathi they design Structured Products (SPs) to
maximize the probability of achieving the Investment Objective. The tenure of these
products is around 3.5 years with a minimum lock-in of 1 year.

14

 Insurance (life/non-life): Anand Rathi, also one of the largest insurance broking firms in
India is licensed by IRDA to act as a broker for Life as well as Non Life insurance sector.
It also serves as a distribution partner to all major insurance companies with a wide range
of insurance product offering.
Mutual Funds: Anand Rathi is one of the known Mutual Fund Distribution House in
India having tie-ups with leading Mutual Funds in the country.The organization aspires to
be the preferred organization for Mutual Fund investments.
Fixed Deposits: Corporate Fixed Deposits are investment options suitable for investors
who desire fixed returns over a period of time. These fixed deposits are offered by
companies/corporate.
Loan against shares/IPO: Loan against Shares offers instant liquidity. It helps in
sourcing funds for any personal requirements or to increase holding/ investment in listed
collaterals and the clients dont have to sell their securities.
Services offering:
Private Wealth Management Services
Institutional services
Investment Banking Services
Currency Consultancy
Corporate Consultancy
Corporate Insurance Advisory
Investment Services: Preferred Clients Services
Privilege Clients Services
Online services: Now one can access to their investment account with Anand Rathi

through their online services. Using Online Services, one can access their account
anytime / anywhere without walking into the branches.
Why one should choose online trading account:

Access to multiple investments and asset classes.

Advisory & research
Advanced Trading Tools
Support
Compatible with multiple devices

15

Trading Platforms are broadly classified as below:

Tr@de Xpress+: Take control of investments by using Tr@de X'press+, the new web-based
platform designed for providing a terminal-like experience and the convenience to trade online.

Tr@de Lite: A simple yet comprehensive web based application which enables to track markets,
trade online in equity, commodity & currency segments, and invest in IPO. It allows access to
research, transaction reports, online portfolio & many such facilities.

Tr@de Mobi: Convenience at ones fingertips brought to you by Tr@de Mobi, the Mobile
Trading App. It allows to instantly access and manage investment and trading account just using
16

their Smartphone. Whether the clients are on vacation or business tour, they dont miss any
important tips on trading.

Tr@de Xpro: Tr@de X'pro is an exe-based desktop software designed for active traders who
transact frequently, offering them a faster trading experience with customized features.
It provides the users with a trading terminal experience and can be downloaded on to you PCs
easily.

Tr@de Xpro+: Tr@de X'pro+ is an innovative solution offering 'Tools of the Trade' from
Anand Rathi that allows to use a bouquet of investment services, trading advice, news and
trading tools. All this is delivered to the clients where it matters the most - right inside their
trading platform.

17

Trade On move: Now one can access their account from anywhere using the Tr@de On Move
services. Clients opting for an AnandRathi Online Investment Account and who are always on
the move can avail the facility to trade having access trained dealers without incurring any extra
cost.

PORTFOLIO TRACKER-KUBER
KubeR is an online facility available for the Clients to track their Portfolio of investments.
1. Family or Individual Account level access
One can login as head of Family and enjoy multiple viewing options with graphical view of
their portfolio. Viewing options include Asset allocation across family portfolios and family
account wise holdings.
2. Auto Updation

Investments and trading positions tracking with the latest price updates from the
exchange getting a real time view of unrealized gain/loss during the day.

Research Updates on the holdings as per calls given by the advisory team of anand
rathi, on a real-time basis

3. Manual Entries
One can add/ edit and delete transactions across all financial products to correct or build an
accurate, single view of Net Worth.
18

4. Tracking of Investments, Trading Positions, Borrowings and Insurance

Track investments across asset classes. One will be able to determine how each of them are
performing as the markets move.
5. Multiple Viewing Options
One could view investments through multiple lenses, aiding their investment decisions by using
companys viewing filter options.
6. Transaction History
Access transaction level information of investments and trading positions across date range,
with facility to edit / delete records, giving the controls to Portfolio Tracker KubeR.
7. Gains & Losses reporting
Determine which investments have given what returns, segregated on Realized / Unrealized.
Added feature of booked gains & losses bifurcated into Long Term & Short Term make handy
inputs for filing Tax returns.
8. Reporting Tools
Reports are available in pdf/excel and can also be e-mailed upon request. KubeR also has
graphical tools to aid you in managing your investments.

2.5 Success sutras of Anand Rathi

Anand Rathi ASSURE:

Availability: Offers availability of a trading representative

Smart Trade: Facilitates a smart way of trading by using few steps
Secure: Ensures Secure trading for the Clients using authentication codes
Uniform: Provides uniform services to all Business Partners and their Clients
Reliable: Business Partners can rely on this, when they are inaccessible to Clients
Ease of access: Creates ease in accessing live trading with a phone call

2.6 Why should one Partner with Anand Rathi?

19

A reputed brand with years of experience & trust

Ready business model

Zero infrastructure cost module

Attractive Revenue sharing

Support in client acquisition

Marketing support Newspapers, Leaflets, Umbrella etc

Strong risk management system

Strong research support backed by high end technology

Grooms Business partners with their enterprising skills and potential to develop clients.

Multi Product offering like - Equity, Derivatives, Commodity, Currency, DP, IPO, Mutual
Fund & Gold E Lock.

20

2.7 Organizational Structure

RCMSPJRA u ur haoa n riga pk eo t.a d i te p n ae s d n eBh p Bh R o h a o a w t r r ka a l h - a d a

P-CrGDahR i l urC y .aiu e r l at Ep se h i ct O id a t eo- , - n r P , Ct r R i& o v e - a t H at e i e l a d ,
CWDREBMYfF o xora . uea o u tem a n k cn l dm it u d nh e t o g ir d & i t i e s & C u r r e n c i e s
MAhvOndVe r ieta pir a c -&h i e n e r a a g t i e o m n es n t
aD-vC hi r a e i c r tm o a n
DcrGm . t oir a r o rn e .
cue tc p o t r
Co r F
O
21

2.8 Culture at Anand Rathi

Friendly, open and encouraging are a few adjectives that can close to describe work

culture at Anand Rathi.

They believe in the abilities and skills of their employees to transform challenges into
success, as a reason they are provided with tasks which help them in enhancing their

learning curve thereby pursuing a successful career ahead as a professional.

Every employee is unique and has a sense of achievement and hence they try to provide

each of them with access to the domain of their interest.

They constantly strive to create an environment which has a work balance approach

wherein one can accelerate professionally as well as nurture personal well being.
Performance and excellence, are not only appreciated, but recognized and rewarded to

ensure encouragement and confidence.

Events and fun filled activities are organized regularly in order to bring out the sense of

belongingness and employees interaction. Activities organized are:

Celebrations of Patriotic Days and Festivals
Birthdays
Picnics and Team outings
Off-sites
Fun activities such as inter-departmental competitions, quiz and games
Employee and team participation in Bay Decorations and Traditional Days
They have organized workshops like Swach Bharat, Diya Painting and
occasional/festivity programs.

22

Chapter 3: Industry Analysis

Chapter 3: Industry Analysis

23

Industry analysis of helps in assessing the current business environment and help businesses to
understand various economic pieces of the market place and these various pieces may be used to
gain a competitive advantage. For this technique like SWOT have been used for formulating
strategy and understanding the competitive landscape in which a company operates.

3.1 SWOT Analysis

It is a method to evaluate the strengths, weaknesses, opportunities and threats involved in a
business. It involves identification of the internal and external factors that are favorable and
unfavorable for the business to achieve its objective. SWOT analysis is important because it
helps in planning the later steps to achieve the objective.

S (Strengths) - characteristics of the business which gives it an advantage over the others.
W (Weaknesses) - characteristics of the business where it has disadvantage as compared

to others.
O (Opportunity) areas where the company could exploit.
T (Threats) elements that could cause problem for the business.

The SWOT Analysis of Anand Rathi is as follows:

STRENGTHS
The first strength of Anand Rathi is that it is research driven.
It has transparency in execution and settlement practices.
High levels of professionals are there in the organization.
It has an excellent internal process.
Good plans are offered by the organization.
It has an established brand image.
It is one of the largest growing distribution network.

WEAKNESSES

It does not have any own unique product or service.

All other broking firms offer same products and services.
Skillful labor is more required.
24

A customer does not try to understand through telecalling.

High level of competition exists.

OPPORTUNITIES

Financial sector boom.

The group is opening new branches.
Client satisfaction.
Target customers are large in number.
Customer is ready to purchase the product if right approach is taken.
Saves taxes.

THREATS

Many new brokers entered in this field.

Price war according competitors e.g. - Share khan, karvy.
Promotion scheme of competitors.
Less publicity may decrease the market share.
Changing Government policies will affect the plans.

SWOT ANALYSIS

STRENGTHS

WEAKNESSES

Research driven.
Transparency in execution and

Not having own unique product or

service.

settlement practices.
25

High levels of professionals are there.

Excellent internal processes.
Good plans are offered.
Established brand image.
Largest Distribution network.

All broking firms offer same products

and services.
Skillful labor is required.
A customer does not try to understand

through telecalling.
High level of competition.

OPPORTUNITIES

Financial sector boom.

Opening new branches.
Client satisfaction.
Target customers are large in number.
Customer is ready to purchase the

product if right approach is taken.

Saves taxes

THREATS

Many new brokers entered in this field.

Price war according competitors e.g. -

Share khan, karvy.

Promotion scheme of competitors.
Less publicity may decrease the market

share.
Changing Government policies will
affect the plans

26

Chapter 4: Research Analysis

Chapter 4: Research Analysis

4.1 Research Problem:
At Anand Rathi, I worked in investment services department and had to deal with a lot of
investors through cold calling and I have taken the topic Investors perception on investment
tools or avenues and the main aim is to find out the perception of the investors during their
investment in different tools or avenues.
4.2 Objectives of the study:
27

To find out where the investors would like to invest the most.
To understand the factors those are to be considered by the investors during investment.
To find out how investors get information about the various financial instruments.
To find out the duration for which they would prefer to keep their money invested.

4.3 Research design /methodology:

Type of study: Descriptive

Sampling method: Convenience Sampling method
Sampling Size: 100 investors
Data type: Primary data
Methods of data collection:
Primary data: Research Questionnaire
Secondary data: Websites, books.

4.4 Data analysis and results:

1. Awareness of investment avenues
Yes
No
Total

95
5
100

95%
5%
100%

28

Awareness of Investment avenues

Yes

No

5%

95%

Interpretation: From the above graph it is clear that 95% of people are aware of the investment
avenues. Rest 5% doesnt have any knowledge about the investment avenues.

2. Percentage of income saved?

0-10%
10-20%
20-30%
30-40%
Total

30
50
20
0
100

30%
50%
20%
0%
100%

29

Percentage of income saved

0-10%

10-20%

20-30%

20%

30-40%

30%

50%

Interpretation: From the above graph it is clear that 30% of people saves 0-10% of their
income, 50% people save 10-20% of their income and the rest 20% people saves 20-30% of their
income. No one saves 30-40% of their income.

3. Percentage of people invested their savings so far

Yes
No
Total

90
10
100

90%
10%
100%

30

Percentage of people invested their savings so far

Yes

No

10%

90%

Interpretation: From the above chart we can see 90% of the people have invested their savings
so far. 20% of them have still not invested anywhere.

4. Avenues opted by investors

SIP
Real estate
Banks
Insurance
Gold
Post office
Government securities

10
5
40
20
10
5
10

10%
5%
40%
20%
10%
5%
10%
31

Others
Total

0
100

0%
100%

Avenues opted by investors

SIP

Insurance

Post Office

Real estate

Gold

Government Securities

Banks

Others
5%

40%
10%

10%

20%
5%
10%

Interpretation: In the above chart, it shows that 40% investors invest in banks. 20% invests in
insurance. 10% invests in SIP, Government securities and gold respectively. And 5% invests in
Real estate and Post office respectively.

5. Timing investments
Monthly
Quarterly
Half yearly
Yearly
Total

40
20
10
30
100

40%
20%
10%
30%
100%

32

Timing Investments
Monthly

Quarterly

Half Yearly

30%

Yearly

40%

10%
20%

Interpretation: In the above chart, it shows that 40% investors invest monthly. 30% yearly, 20%
quarterly and rest 10% half yearly.

6. Advice taken by the investors before investment

Local brokers
Chartered Accountants
Family & friends
Magazines & newspapers
Banks
Any other
Total

10
5
25
5
50
5
100

10%
5%
25%
5%
50%
5%
100%

33

Advice taken by the investors before investment

Local Brokers

Magazines & newspapers

Chartered Accountants

Banks

Family & friends

Any other

5%

10%

25%

5%
5%

50%

Interpretation: In the above chart, it shows that 50% of the investors take advice from banks,
5% take from chartered accountants, 5% take from magazines & newspapers, 10% take from
local brokers, 25% take from family & friends and 5% had any other as their option.

7. Investment horizon
<1 year
1-2 years
2-5 years
>5 years
Total

10
20
50
20
100

10%
20%
50%
20%
100%

34

Investment horizon
<1 year

1-2 years

2-5 years

20%

10%

>5 years

20%

50%

Interpretation: In the above chart, it shows that 50% of the investors like to invest for a period
of 2-5 years, 20% like to invest for more than 5 years, again 20% for a period of 1-2 years, and
10% would like to invest for a period of less than 1 year.

8. Short term goal for investment

Return
Liquidity
Risk
Total

60
25
15
100

60%
25%
15%
100%

35

Short term goal for investment

return

liquidity

Risk

15%

25%

60%

Interpretation: In the above chart, it shows that 60% of investors short term goal is return, 25%
investors goal is liquidity, and rest 15% investors goal is risk.

9. Long term goal of investment

Retirement corpus
Childrens future
Dream house
Others
Total

50
40
10
0
100

50%
40%
10%
0%
100%

36

Long term goal of investment

Retirement corpus

Children's future

Dream house

Others

10%
50%

40%

Interpretation: In the above chart, it shows that 50% investors long term goal of investment id
retirement corpus, 40% investors goal is childrens future and rest 10% investors goal is to have
a dream house.

10. Decision to invest depends upon:

Past performance
Economic scenario
Industry Analysis
Company Analysis
Credit rating
Others
Total

30
10
25
20
10
5
100

30%
10%
25%
20%
10%
5%
100%
37

Decision to invest depends upon

Past performance

Economic scenario

Industry Analysis

Company Analysis

Credit Rating

Others

10%

5%
30%

20%
10%
25%

Interpretation: In the above chart, it shows that 30% investors take decision by the past
performance of the company, 25% of the investors take decision by the industry analysis, 20%
by company analysis, 10% by the economic scenario, 10% by credit rating and rest 5% by other
factors.

11.Factors influencing investment decisions

Liquidity
Returns
Safety
Tax Savings
Total

20
40
30
10
100

20%
40%
30%
10%
100%

38

Factors influencing investment decisions

Liquidity

Returns
10%

Safety

Tax Saving

20%

30%
40%

Interpretation: In the above chart, it shows that 40% investors invest for returns, 30% for
safety, 20% for liquidity and rest 10% for tax savings.

12. Investment is done seeing tax savings factor?

Yes
No
Total

80
20
100

80%
20%
100%

39

Investment is done seeing Tax savings?

Yes

No

20%

80%

Interpretation: In the above chart, it shows that 80% investors invest because of the tax savings
factor.

4.5 Research findings and conclusions:

Most of the people in Jaipur are aware of the investment avenues or tool.
10-20% of income is saved by 50% people and 90% savings of the people are invested.
The investment avenue which is preferred the most is Banks as it is less risky.
Monthly investments are done the most.
Before investing, people mostly take the suggestions of banks or family or friends.
Generally it has been seen than people invest for a period of 2-5 years.
40

The most preferred short term goal for investment is return and the most preferred long

term goal for investment is retirement corpus.

Most of the investors take decision during investment seeing the past performance.
Returns are the main factor influencing investing decisions.

4.6 Limitations of the study:

Time limitations
Research has been done only in Jaipur
Some of the persons were not so responsive
Possibility of error in data collection
Possibility of error in analysis of data due to small sample size.

41

CHAPTER 5: OVERALL
FINDINGS/CONCLUSIONS/SUGGESTION

CHAPTER 5: OVERALL FINDINGS/CONCLUSIONS/SUGGESTION

5.1 FINDINGS
1. According to the data that have been collected among the recipients 62.5% were male
and the rest 37.5 were female. From this it can be seen that investing is mostly a mans
game although women are doing their investment in some way or another.
2. People like to invest more in banks as compared to any other markets, as it is safer.

42

3. Most of the people whose survey was done mostly were salaried or the age group
between 31- 40; this suggests that youth of India is unaware about investment
opportunities or has less interest in investment.
4. According to the data that have been collected people give more preference to returns
with higher interest at low risk in shorter span.
5. Most of the investors possess higher education like graduation and above.
6. Most investors opt for two or more sources of information to make investment decisions.
7. Most of the investors discuss with their banks before making an investment decisions.
8. Percentage of income that they invest depend on their annual income, more the income
more percentage of income they invest.
9. The investors decisions are based on their own initiative.
10. Most of the investors are financial illiterates.
11. Women are attracted towards investing gold than any other investment avenue.

5.2 CONCLUSIONS
The awareness of investment knowledge, investment opportunities is moderate in Jaipur. These
people are helped by financial portals, financial news channels, financial newspapers; various
markets related T.V. shows, Expert talks, magazines. For Indian public money is everything. So
they are more sensitive about their money. They will think hundred times before investing in any
market and will expect more than that. They feel that they are having enough money, time,
resources and opportunities with them for investing. Though they are having sound knowledge of

43

financial market and economic condition of India yet they lack the edge above the others as this
field is very unpredictable and vast hence they must be backed up by a financial planner.

5.3 SUGGESTIONS
1. Day trading is an addiction which can ultimately prove disastrous as it is very risky.
Encouragement should be given to invest in equity for the long term.
2. Some financial literacy campaign should be put up as many people are still unaware of
stock market and in India, specially the youth
3. The communication should be increased by the company and more personalized services
should be given to investors to earn trust and long run relationship.
4. The company must also provide more value added services to investors.
5. People give more importance to savings, so as per their likings more opportunities should
be provided to the investors.

44

CHAPTER 6: SIP EXPERIENCE AND KEY

LEARNINGS

CHAPTER 6: SIP EXPERIENCE AND KEY LEARNINGS

6.1 SIP Experience

My SIP journey of 45 days was very valuable and knowledgeable. It was a whole new
experience for me to work in a company with such experienced employees. Here I got the

45

opportunity to work in investment services department and learned about execution of trade in
stock market.
At Anand Rathi 9:15am to 3:30pm was the market session and during this period I had to sit next
to a dealer as referred by my mentor and do the work given by him or observe the stock market.
The employees/dealers were very helpful and cooperative; they gave their valuable time for
teaching me how the stock market works and patiently answered my questions and listened to
my views.
My 6 weeks work plan is as follows:
First two weeks:

Observing the ups and downs of the stock market on the terminals allotted to each one of
us.
Cold calling to clients for SIP Investment
Invitation for investor's meet
Clearing T5 debit balance
Activating those accounts which have become dormant.
Filling forms of IPO's (Ujjivan, Thyrocare & Parag)
Demat and trading Account
SIP
Activating the dormant accounts.
Confirmation of trade of a particular day.

Next two weeks:

Cold calling to clients for SIP Investment

Clearing T5 debit balance
Filling forms of SIP
Activating the dormant accounts.
Confirmation of trade of a particular day.
Updating Client Profiling.

46

Last two weeks:

Cold calling to clients for SIP Investment

Term Plans
Health Insurance
Requesting clients to trade who have holdings in their accounts.
Payment of annual charges
Trading in future and options
Opening of new accounts
Filling forms of Demat and trading Account
SIP
Confirmation of trade of a particular day.
Updating Client Profiling.
Prepared questionnaire on health insurance to be filled up by the employees.

Though the working environment was comfortable sometimes it becomes tense when there were
arguments between customers and managers/dealers for obvious reasons.
During this time I understood and experienced, what is the real pressure of achieving targets.
Also got the opportunity to attend the trainings on health insurance, SIPs, Future and options,
Equity market etc which was given by the Area Manager or any guest lecture.
This internship was a learning curve in my career and I am grateful to my college and faculties
for giving me this opportunity to pursue it from Anand Rathi.

6.2 Key Learnings

Learned about execution of the trade in stock market.

Learned about the software used for trading. The software is called nest.
Learned about the various markets.
Learned about IPOs (Initial Public Offer) and demat accounts requirements of filling

them.
Learned about KYC forms and requirements of filling them.
Learned about the behavior of customers through cold calling
Learned about mutual funds and SIPs
47

 Learned about dormant accounts and requirements for filling them.

Learned about future and options.
Learned about health insurance.

References
www.rathi.com
www.investopedia.com
www.wikipedia.com

ANNEXURE
48

ANNEXURE

Topic of the survey: Investors perception on investment tools or avenues in Jaipur

Dear Maam/Sir,
I am conducting this survey purely for academic purpose. No part of this survey shall be used for
any other purpose. Confidentiality of data shall be maintained. Thank you.

1. Are you aware of the investment avenues?

Yes
No
2. What percentage of your income do you save?
0-10%
10-20%
20-30%
30-40%
3. Have you invested your savings so far?
Yes
No
49

4. Which of the following avenues have you opted for?

SIP(Systematic Investment plan)
Insurance
Post Office
Real Estate
Gold
Government Securities
Banks
Others
5. How do you time your investments?
Monthly
Quarterly
Half Yearly
Yearly
6. Whose advice do you seek on your investment decisions?
Local Brokers
Magazines & newspapers
Chartered Accountants
Banks
Family & friends
Any Other
7. What is your investment horizon?
<1 year
1-2 years
2-5 years
>5 years
8. What is your short term goal of investment?
Return
Liquidity
Risk
9. What is your long term goal of investment?
Retirement Corpus
Childrens future
Dream House
Others
10. Your decision to invest depends upon?
Past Performance
Economic Scenario
Industry Analysis
Company Analysis
Credit Rating
Others
50

11. What factors influences your investment decisions?

Liquidity
Returns
Safety
Tax Savings
12. Do you invest for Tax saving?
Yes
No

PERSONAL DETAILS:

Name
Contact No.
Age Group
20-30
31-40
41-50
50 and above
Gender
Male
Female
Education Qualification
Postgraduate
Graduate
Non graduate
Others
Occupation
Salaried
Self Employed Professional
Self employed non professional
Retired
Monthly income
Up to Rs.20000
Rs20001-40000
Rs40001-60000
Above Rs60000

51