I , PARIMAL SONERA , student of the two-year MBA programme at Indukaka Ipcowala Institute of

2
Management (I IM) hereby declare that the report on summer training and project work entitled
“ANALYSATION OF PROCESS OF PORTFOLIO MANAGEMENT SERVICE” is the result of my /
our own work. I/we also acknowledge the other works / publications cited in the report.

(Signature)
Place: Changa
Date: 31.07.2011 (PARIMAL SONERA)
 ACKNOWLEDGEMENT

Every successful work is not completed without the help and support of the people around us. A
success is shared by not an individual but in fact by the people who constantly help him and guide
him in his work. Through this I want to express my gratitude towards all those who have directly or
indirectly contributed in my journey.

I am greatly thankful to prof G.K.krishnamurthy the Incharge Director of Indukaka Ipcowala Institute of
Management, who gave us the valuable opportunity of involving ourselves in such project assignments.

I am greatly thankful to my company guide Mis.Pinky Talati for his kind support and help during
this eight weeks of my summer training and in completion of my target. I wish to express my deep
sense of gratitude towards Sharekhan Ltd. for their help and valuable guidance in conducting this
summer internship project from its conception to its completion.

I would also like to thanks our faculty for their ever inspiring guidance about the summer training.
 CHAROTAR UNIVERSITY OF SCIENCE AND TECHNOLOGY (CHARUSAT)
INDUKAKA IPCOWALA INSTITUTE OF MANAGEMENT (I2IM)
MBA PROGRAMME
BATCH 2010-12

CERTIFICATE

This is to certify that this report ‘Portfolio Management Service’ is the bona fide work of Mr.
Parimal Sonera , student of Second Year of MBA Programme (2010-2012) at “sharekhan Ltd.”
submitted to INDUKAKA IPCOWALA INSTITUTE OF MANAGEMENT, CHANGA in partial
fulfillment of their academic requirement of the MBA PROGRAMME.

Ms. Shetal Thomas Prof.G Krishnamurthi

Project Guide Principal

Date: 19/08/2011
Place: Changa
 TABLE OF CONTENTS

Executive Summary ---------------------------------------------------------------------------------- 7

Part-I Organizational Profile ------------------------------------------------------------------------------- 8

1 Introduction---------------------------------------------------------------------------------------------- 8

2 Industry overview ---------------------------------------------------------------------------------------

3 About Company (SHAREKHAN) ----------------------------------------------------------------- 11

3.1 Introduction -----------------------------------------------------------------------------------------

3.2 History -----------------------------------------------------------------------------------------------

3.3 Company overview ---------------------------------------------------------------------------------

3.4 Mission and Vision ---------------------------------------------------------------------------------

4 Functional area ---------------------------------------------------------------------------------------- 23

4.1 Market and Marketing --------------------------------------------------------------------------- 23

4.2 Production / Operations ------------------------------------------------------------------------- 28

4.3 Human Resources Management Departmentalisation --------------------------------------- 30

4.4 Finance and Accounts---------------------------------------------------------------------------- 31

 5 Financial Analysis------------------------------------------------------------------------------------ -
36

5.1 Profitability of the firm----------------------------------------------------------------------- 36

5.2 Balancseheet of firm------------------------------------------------------------------------- 38

5.3 cash flow anylsis -------------------------------------------------- 39

PART –II Project Study ------------------------------------------------------------------------------ 41

7 Project study ----------------------------------------------------------------------------------- 41

7.1 introduction of the study ------------------------------------------------------------------------

7.2 Importance of the study --------------------------------------------------

7.3 Objectives of the study --------------------------------------------------------------------------

8 Research -----------------------------------------------------------------------------------------------

8.1 Research
Design ---------------------------------------------------------------------------------

8.2 Data Sources

and Data Collection Method --------------------------------------------------

8.3 Sampling Plan

-----------------------------------------------------------------------------------

9 Data and data analysis --------------------------------------------------------------------------- 49

10 Findings and Interpretations ----------------------------------------------------------------------

-
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 day’s 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 Net
worth 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. The investor’s profile is based on the
results of a questionnaire that the Investors completed.
In order to identify the effectiveness of Share khan PMS services
this Research is carried throughout the area of Baroda. 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.
 PART -I ORGANISATION PROFILE

INTRODUCTION TO THE INDUSTRY

 What is stock market?

A stock market or equity market is a public (a loose network of economic transactions, not a
physical facility or discrete) entity for the trading of company stock (shares) and derivatives at an
agreed price; these are securities listed on a stock exchange as well as those only traded privately.

The size of the world stock market was estimated at about $36.6 trillion at the start of October
2008. The total world derivatives market has been estimated at about $791 trillion face or
nominal value, 11 times the size of the entire world economy .

About the Indian stock market

In India there are 23 stock exchanges of which the major ones are:

Bombay stock exchange(BSE)

National Stock Exchange(NSE)
BSE:-
At the end of the American civil war, the brokers who thrived out of this war in 1874, found a place
in a street, where they would easily assemble and transact business. This street is nowadays,
popularly known as DALAL STREET. In 1887, they formally established in Bombay, and were
known as “Native Shares and Stock Brokers Association”. In 1895, it acquired a premise in the same
street and finally was inaugurated in 1899 with the name Bombay Stock Exchange (BSE).
India's premier stock exchange Bombay Stock Exchange (BSE) can also trace back its origin to
as far as 125 years when it started as a voluntary non-profit making association. You hear about
it any time it reaches a new high or a new low, and you also hear about it daily in statements like
'The BSE Sensitive Index rose 5% today'. Obviously, stocks and stock markets are important.
Stocks of public limited companies are bought and sold at a stock exchange. But what really are
stock exchanges? Known also as News on the stock market appears in different media every day.
The stock market , a stock exchange is an organized marketplace for securities (like stocks,
bonds, options) featured by the centralization of supply and demand for the transaction of orders
by member brokers, for institutional and individual investors. The exchange makes buying and
selling easy. The need for stock exchanges developed out of early trading activities in
agricultural and other commodities. During the middle Ages, traders found it easier to use credit
that required supporting documentation of drafts, notes and bills of exchange.
India's other major stock exchange National Stock Exchange (NSE), promoted by leading
financial institutions, was established in April 1993. Over the years, several stock exchanges
have been established in the major cities of India. There are now 23 recognised stock exchanges
— Mumbai (BSE, NSE and OTC), Calcutta, Delhi, Chennai, Ahmedabad, Bangalore,
Bhubhaneswar, Coimbatore, Guwahati, Hyderabad, Jaipur, Kochi, Kanpur, Ludhiana,
Mangalore, Patna, Pune, Rajkot, Vadodara, Indore and Meerut.
NSE: -
With the liberalization of Indian economy it was found necessary to lift the Indian stock markets
on par with the international standards. The NSE was incorporated in 1992 by industrial
development bank of India, industrial credit and Investment Corporation of India, industrial
finance corporation of India, all insurance corporations, selected commercial banks and others.
NSE is India’s leading stock exchange covering more than 160 cities and towns across the
country. It provides the modern fully computerized trading system designed to offer investors
across the country a safe and easy way to invest to liquidate investment and securities. Investors
in many areas of country did not have the same access and opportunity to trade so there arise the
need for setting up the national stock exchange. The NSE network has been designed to provide
equal access to investors from anywhere in India and to be responsive to their needs.

On its recognition as a stock exchange under the Securities Contract Act, 1956 in April 1993, NSE
started operations in the Wholesale Debt Market (WDM) segment in June 1994. Capital market
(equities) segment commenced operations in November 1994, and operations in derivative segment
started in June 2000.NSE started trading in the capital market segment on November3, 1994 and
within one year became the largest exchange in India, in terms of volumes transacted. During the
year 2005-06 NSE reported, a turnover of Rs 1,569,556 crores in the equity segment.
The Indian retail brokerage market, which is going through a wonderful phase with high growth
rate. The total trading volume of the Indian brokerage companies stood at US$ 1239.1 billion in
the year 2004, which increased to US$ 1492.1 billion in 2005. It is further expected to reach
US$ 6535.7 billion by the year 2015.
INTRODUCTION OF SHAREKHAN LTD :

Sharekhan Ltd is one of the leading retail stock broking house of SSKI Group
which is running successfully since 1922 in the country. It is the retail broking
arm of the Mumbai-based SSKI Group, which has over eight decades of
experience in the stock broking business. Sharekhan offers its customers a
wide range of equity related services including trade execution on BSE, NSE,
Derivatives, depository services, online trading, investment advice etc The
firm’s 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 one lakh customers. 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.
The objective has been to let customers make informed decisions and to
simplify the process of investing in stocks.

On April 17, 2002 Sharekhan launched Speed Trade, a 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 Speed Trade has become a de facto standard for the Day Trading
community over the net.

Sharekhan’s ground network includes over 640 centers in 280 cities in India
which provide a host of trading related services.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,
Microsoft, Cambridge Technologies, Nexgenix, Vignette, Verisign Financial
Technologies India Ltd, Spider Software Pvt Ltd. to build its trading engine and
content. The Morakhiya family holds a majority stake in the company. HSBC,
Intel & Carlyle are the other investors.

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.
Presently 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. SSKI’s 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 organization’s revenue, with a daily turnover of over
US$ 2 million. 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$ 1 billion in private equity deals.
Some of the clients include BPL Cellular Holding, Gujarat Pipavav, Essar,
Hutchison, Planetasia, and Shopper’s Stop.
PROFILE OF SHAREKHAN

Name of the company: Sharekhan ltd.

Year of Establishment: 1925

Headquarter : ShareKhan SSKI

A-206 Phoenix House
Phoenix Mills Compound
Lower Parel
Mumbai - Maharashtra, INDIA- 400013

Nature of Business : Service Provider

Services : Depository Services, Online Services and

Technical Research.

Number of Employees : Over 3500

Revenue : Data Not Available

Website : www.sharekhan.com

Slogan : Your Guide to The Financial Jungle.

Vision

To be the best retail brokering Brand in the retail business of stock market.

Mission

To educate and empower the individual investor to make better

investment decisions through quality advice and superior service.
Sharekhan is infact-
• Among the top 3 branded retail service providers
• No. 1 player in online business
• Largest network of branded broking outlets in the country serving more
than 7,00,000 clients
OWNERSHIP PATTERN AT SHAREKHAN
Major shareholders
Citi Venture Capital And Other Private Equity 60%
Firms
Barings Pvt. Equity Asia 23%
IDFC 6%
Employees 11%

Management Team
Mr. Tarun P. Shah. CEO.
Mr. Shankar Vailaya. Director-Operations.
Mr. JaideepArora. Director-Product and Technology.
Mr. Ketan Parekh. Chief Technology Officer.

AREA OF OPERATION OF SHAREKHAN:

The area of operations of SHAREKHAN is spread over two countries. They are:
1. INDIA 2. UAE
The services are available through a network of 1437 Share shops spanning 170 major towns and
cities in the country along with an international branch in Dubai (UAE) Growing retail network
across

 1120 franchisees
 168 branches
 325 cities

AWARDS AND ACHIEVEMENTS :

 Share khan is amongst the top 2 online trading websites from India.
 Share khan is the most preferred financial destination amongst the online
banking customers.
 Share khan is the winner of “Best Financial Website Award”.
Share khan is awarded at the Awaaz “Consumer Awards 2005” in the India’s
stock broking firm
PRODUCTS AND SERVICES OF SHAREKHAN LIMITED

The different types of products and services offered by Sharekhan Ltd. are
as follows:

 Equity and derivatives trading

 Depository services
 Online services
 Commodities trading
 Dial-n-trade
 Portfolio management
 Share shops
 Fundamental research
 Technical research
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 Share khan’s
dedicated phone lines 1800-22-7500, 3970-7500. Beside this, Relationship Managers are
always available on Office Phone and Mobile to resolve customer queries.

SHAREMOBILE
Share khan 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.

PREPAIDACCOUNT
Customers pay Advance Brokerage on trading enjoy uninterrupted trading Account and Beside
in their Account. this, great
discount are also available (up to 50%) on brokerage

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 .

MutualFundOnline

Investors can apply to Mutual Funds of Reliance, Franklin Templeton Investments, ICICI
Prudential, SBI, Birla, Sundaram, HDFC, DSP Merrill Lynch, PRINCIPAL and TATA with
Share khan
ZeroBalanceICICISavingAccount

Share khan had tied-up with ICICI bank for Zero Balance Account for Share khan’s Clients.
Now their customers can have a Zero Balance Saving Account with ICICI Bank after your
demat account creation with Share khan
TYPES OF ACCOUNT IN SHAREKHAN LIMITED Sharekhan

offers two types of trading account for its clints

 Classic Account (which include a feature known as Fast Trade

Advanced Classi
 Account for the online users) and
 Speed Trade Account

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 investor who
is risk-averse and hence prefers to invest in stocks or who does not
trade too frequently. This account allow investors to buy and sell stocks
online along with the following features like multiple watch lists,
Integrated Banking, Demat and digital contracts, Real-time portfolio
tracking with price alerts and Instant credit & transfer.

This account comes with the following features:

a. Online trading account for investing in Equities and Derivatives

b. Free trading through Phone (Dial-n-Trade)
I. Two dedicated numbers(1800-22-7500 and 39707500) for
placing the orders using cell phones or landline phones
II. Automatic funds transfer with phone banking facilities (for
Citibank and HDFC bank customers)
III. Simple and Secure Interactive Voice Response based
system for authentication
IV. get the trusted, professional advice of Sharekhan limited’s
Tele Brokers
V. After hours order placement facility between 8.00 am and
9.30 am
c. Integration of: Online Trading +Saving Bank + Demat Account.
d. Instant cash transfer facility against purchase & sale of shares.
e. IPO investments.
f. Instant order and trade confirmations by e-mail.
g. Single screen interface for cash and derivatives.
SPEED TRADE ACCOUNT
This is an internet-based software application, which enables one to buy and
sell in an instant. It is ideal for active traders and jobbers who transact
frequently during day’s session to capitalize on intra-day price movement.

This account comes with the following features:

a. Instant order Execution and Confirmation.

b. Single screen trading terminal for NSE Cash, NSE F&O & BSE.
c. Technical Studies.
d. Multiple Charting.
e. Real-time streaming quotes, tic-by-tic charts.
f. Market summary (Cost traded scrip, highest value etc.)
g. Hot keys similar to broker’s terminal.
h. Alerts and reminders.
i. Back-up facility to place trades on Direct Phone lines.
j. Live market debts.
CHARGE STRUCTURE

Fee structure for General Individual:

Charge Classic Account Speed Trade Account

Account Opening Rs. 750/= Rs. 1000/=

Intra-day – 0.10 % Intra-day - 0.10%

Brokerage
Delivery - 0.50 % Delivery - 0.50%

Depository Charges:

Account Opening Charges Rs. NIL

Rs. NIL first year Rs. 300/= p.a.
Annual Maintenance Charges
from second calendar year onward

BROKERAGE STRUCTURE OF SHAREKHAN

BROKERAGE:

INTRADAY DELIVERY
CASH- EQUITIES 0.05% 0.5%
PREPAID SCHEME 0.025% 0.25%
HOW TO OPEN AN ACCOUNT WITH SHARE KHAN LIMITED?

For online trading with Sharekhan Ltd., investor has to open an account.
Following are the ways to open an account with Sharekhan Ltd.:

 One need to call them at phone number provided below and asks that
he want to open an account with them.
a. One can call on the Toll Free Number: 1-800-22-7500 to speak to
a Customer Service executive
b. Or If one stays in Mumbai, he can call on 022-66621111

 One can visit any one of Sharekhan Limited’s nearest branches.

Sharekhan has a huge network all over India (640 centers in 280
cities). One can also log on to “http://sharekhan.com/Locateus.aspx”
link to find out the nearest branch.

 One can send them an email at info@sharekhan.com to know about

their products and services.

 One can also visit the site www.sharekhan.com and click on the option
“Open an Account” to fill a small query form which will ask the
individual to give details regarding his name, city he lives in, his email
address, phone number, pin code of the city, his nearest Sharekhan
Ltd. shop and his preferences regarding the type of account he wants.

These information are compiled in the headquarter of the company that

is in Mumbai from where it is distributed through out the country’s
branches in the form of leads on the basis of cities and nearest share
shops. After that the executives of the respective branches contact the
prospective clients over phone or through email and give them
information regarding the various types of accounts and the documents
they need to open an account and then fix appointment with the
prospective clients to give them demonstration and making them
undergo the formalities to open the account. After that the forms that
has collected from the clients, is scrutinized in the branch and then it
is sent to Mumbai for further processing where after a few days the
clients’ account are generated and activated. After the accounts are
activated, a Welcome Kit is dispatched from Mumbai to the clients’
address mentioned in the documents provided by them. As soon as the
clients receive the Welcome Kit, which contains the clients’ Trading ID
and Trading Password, they can start trading and investing in shares.
Generally the process of opening an account follows the following steps:

LEAD MANAGEMENT SYSTEM (LMS) / REFERENCES

CONTACT THE PERSON OVER PHONE OR THROUGH EMAIL

FIXING AN APPOINTMENT WITH THE PERSON

GIVING
DEMONST-
RATION

YES NO

DOCUMENTATION

FILLING UP THE FORM

SUBMISSION OF THE FORM

LOGIN OF THE FORM

SENDING ACCOUNT OPENING KIT TO THE CLIENT

TRADING
Apart from two passport size photographs, one needs to provide with the
following documents in order to open an account with Sharekhan Limited.:

 Photocopy of the clients’ PAN Card which should be duly attached

 Photo copy of any of the following documents duly attached which will
serve as correspondence address proof:

a. Passport (valid)
b. Voter’s ID Card
c. Ration Card
d. Driving License (valid)
e. Electricity Bill (should be latest and should be in the name of the
client)
f. Telephone Bill (should be latest and should be in the name of the
client)
g. Flat Maintenance Bill (should be latest and should be in the
name of the client)
h. Insurance Policy (should be latest and should be in the name of
the client)
i. Lease or Rent Agreement.
j. Saving Bank Statement** (should be latest)

 Two cheques drawn in favour of Sharkhan Limited, one for the

Account Opening Fees and the other for the Margin Money (the
minimum margin money is Rs. 5000).

* A cancelled cheque should be given by the client if he provides Saving

Bank Statement as a proof for correspondence address.

NOTE: Only Saving Bank Account cheques are accepted for the purpose
of
Opening an account.
 RESEARCH SECTION IN SHAREKHAN LIMITED

Sharekhan Limited has its own in -house Research Organisation which is

known as Valueline. It comprises a team of experts who constantly keep an
eye on the share market and do research on the various aspects of the share
market. Generally the research is based on the Fundamentals and Technical
analysis of different companies and also taking into account various factors
relating to the economy.

Sharekhan Limited’s research on the volatile market has been found accurate
most of the time. Sharekhan's trading calls in the month of November 2007
has given 89% strike rate.

Out of 37 trading calls given by Sharekhan in the month of November 2007,

33 hit the profit target. These exclusive trading picks come only to Sharekhan
Online Trading Customer and are based on in-depth technical analysis.

As a customer of Sharekhan Limited, one receives daily 5-6 Research Reports

on their emails which they can use as tips for investing in the market. These
reports are named as Pre-Market Report, Eagle Eye, High Noon, Investors
Eye, Daring Derivatives and Post -Market Report. Apart from these,
Sharekhan Limited issues a monthly subscription by the name of Valueline
which is easily available in the market.

Sharekhan has tie up with the following banks:

 HDFC
 Axis Bank
 IDBI
 Citi Bank
 IndusInd Bank
 Union Bank
 ICICI Bank

Customer .

 Business class people (high class)

 High Net worth Individuals
 Service class people
 Government Employees
 Young Adults (19-30 yrs.)
 Adults (35-50 yrs.)
 HUF (Hindu Undivided Family)
 Women (literate and working)
Baroda branch of Sharekhan have around 3000 customers.
Types of customers in Share khan:

INTRADAY : 25% of the customers are trading on intraday

basis.
DELIVERY : 50% of the customers are trading on delivery
basis.
F&O : 12% of the customers are investing in futures
and options.
COMMODITY : 5% Customers are investing in commodities.
HNI (initial investment > 2,00,000) : 8% of the customers are Investing.
CORE ACTIVITIES

Sharekhan is India’s leading broking houses providing a complete life cycle of investment
solution in:
 Equities and Derivatives Trading
 Commodity Trading
 Depository Service
 Portfolio Management Services
 Mutual Fund
 IPO Services
 Fundamental and Technical Research
 Online Trading

BUSINESS OF THE COMPANY

Business is categorized into SIX areas :

1. Equity
2. Derivatives
3. PMS
4. Commodities
5. Mutual Funds
6. IPO’s

TRADER’S are having two options for trading:

(1)Online
(2)Offline
 FUNCATIONAL AREA :

MARKET AND MARKETING

TYPES OF MARKETS

(A)Primarymarket
(IPO’s):

In financial markets, an Initial Public Offering (IPO) is the first sale of a company's
common shares to public investors. The company will usually issue only primary shares,
but may also sell secondary shares. Typically, a company will hire an investment banker to
underwrite the offering and a corporate lawyer to assist in the drafting of the prospectus.
The sale of stock is regulated by authorities of financial supervision and where relevant by
a stock exchange.

It is usually a requirement that disclosure of the financial situation and prospects of a

company be made to prospective investors. The Federal Securities and Exchange
Commission (SEC) regulates the securities markets of the United States and, by extension,
the legal procedures governing IPOs. The law governing IPOs in the United States includes
primarily the Securities Act of 1933, the regulations issued by the SEC, and the various
state "Blue Sky Laws".
(B) Secondary
market:

The secondary market (also called "aftermarket") is the financial market for trading of
securities that have already been issued in its initial private or public offering. Stock
exchanges are examples of secondary markets. Alternatively, secondary market can refer to
the market for any kind of used goods.
Function of the secondary
market:
In the secondary market, securities are sold by and transferred from one speculator to
another. It is therefore important that the secondary market be highly liquid and transparent.
The eligibility of stocks and bonds for trading in the secondary market is regulated through
financial supervisory authorities and the rules of the market place in question, which could be
a stock exchange.
 SALES & MARKETING DEPARTMENT

The Marketing Department is one of the most important departments in every concern. The
effectiveness of this department is the most important factor in the progress of the firm. The
whole performance of the company depends on marketing and without the knowledge of this
department; the company cannot sell its goods. The sales manager has the right to perform
these functions. He has many functions like he has to organize promotional activities and
sales events like “First Step”. The department has a Sales manager, Assistant sales manager,
Sales executives and trainees. The department gets databases from various sources but the
main source for leads is internet registration by the clients.

LEAD MANAGEMENT SYSTEM:

Lead management system is the software used by the sales department to manage the leads.
Every employee of sales department will have unique user id and password to access this
software. Every morning the sales manager will be provided with some leads from the head
office. The sales manager will split this work and assign the leads for assistant sales manger
and executives. Assistant sales manger will assign some leads to the trainees of the company
and he also assign some personal references to the trainees. Then the employees will work on
the leads and they will update the response in the lead management system.
 STRATEGY ADOPTED BY SALES DEPARTMENT

MARKETING STRATEGIES
AND PROMOTIONAL
STRATEGIES

MARKETING STRATEGIES

The marketing strategy was mainly focused on reaching to every segment of people

SEGMENTATION:

Sharekhan segmented the whole market in to three types of clients which are as follows,

Retail investors
High net worth investors
Day traders (or) speculators

Most of the retail investors are salaried persons and middle income class people. They enter with
initial capital around Rs.5000-25000. High net worth investors are clients who invest more than
Rs.5 lakhs . They are mostly high income group. Day traders are clients who are professional
speculators and day traders.

TARGETING:

As most of clients are middle income people, Sharekhan targets mainly on retail investors such as
salaried people and middle income people.

POSITIONING:

Positioning strategy adopted by Sharekhan is they associated themselves with technology.

Standardized procedures are the first thing that comes to mind of a client when he thinks of
Sharekhan.
 PROMOTIONAL STRATEGIES:

Telemarketing:

In the organization, database of contact numbers of various category of people are

maintained who may or may not know about the services.Sales executives and assistant managers
make phone calls to these people and if they are interested, give various details about the services
and products.This will make people to opt for Sharekhan in future even if they are not interested
to enter stock market currently.
Seminars:

The sales personnel of Sharekhan prepare seminars depending upon the type of people
they are going to meet ie students or coporate people.They go to respective institutions and take
seminars giving various details suiting that category people and the contact numbers of
Sharekhan sales personnel to contact further if interested.
Door steps:

The sales personnel also go to domestic homes of people and various institutions(meet
every person in person, not like seminars).They explain to them in detail, various schemes,
products and services. They also explain about the documents required to open an account with
Sharekhan. If the person is interested the sales personnel will acquire the documents and will
proceed further.

KIOSKS:

The sales team puts up stalls in various locations and provide pamphlets containing
details about various products and services of Sharekhan.They also explain orally to people who
are interested.
Online advertising:

Sharekhan has links to various websites through which they market their products and
services ie through pop up windows and flash texts which when clicked directly leads to
Sharekhan’s website.

Media :

Sharekhan also uses advertisements in TV channels like CNBC.

 Operations Department

Inputs :
There are many inputs to the production & operations viz., land & buildings,
machinery & equipments, furniture & fixtures, employees, technology, capital (invested
by promoters & deposited by the customers) and the most important input, i.e.,

management functions carried out at national, regional and branch level in Sharekhan .

Conversion Process :
The main aim of it is to make profit with customer satisfaction. The conversion of
inputs works as the Sharekhan earn brokerage from the customers. The profits are
generated from getting a higher return on the invested amount of money than the amount
payable to the customers. The process is facilitated by a centralized computer system in
which the data is stored and recovered for the whole INDIA and it is having the CPU at
the H/O in Mumbai, Sharekhan is regulating the brokerage rates all over India by keep
watch on each transaction done from the branch office. The data of a customer will be
stored in the central computer and all facilities such as bills, credit/debit reports etc. are
provided by that computer to all customers on-line on the internet.

The conversion process is also facilitated by some adjustments to the inputs and
then the random fluctuations are also handled in the process and lastly the monitoring of
the process is done and a feedback is given to do the adjustments for the process as
indicated in the figure given.

Outputs :
Outputs are those services generated by Sharekhan with the help of the inputs and

using the conversion process. These services are as listed in the figure above .

Table Sharekhan
Consumer Retail brokering Channels Financial Complain
Services advisory Services resolvance
Corporate Broker Capital markets Nationwide Depository Others
advisor electronic data participant
transfer
Operations Strategy at Sharekhan
Operations strategies are implemented in Sharekhan as shown in the chart given
above and the main points of consideration are Efficiency, Dependability, Quality and
Flexibility.

The points demand a facility mission that is made up of process, capacity,

facilities, vertical integration, and infrastructure facilities provided to get the desired
outputs as per the plan.

The main aim of the operations strategy at Sharekhan is that the efficiency of the
organization and high level of it is desired outputs with low costs, i.e., productivity with
effectiveness. Quality should be high and consistent in delivering services; Flexibility is
related with fast introduction of new services and providing a wide range to select an
option to the customer. This is facilitated by the process of operations, capacity/ability of
the organization, competitive advantages, vertical integration and the infrastructure
created by the firm.

Sharekhan plans the strategies to get a working plan from it and the planning is
done from top-to-bottom level, i.e., national level, regional level, divisional level and the
branch level planning is carried out by the managers.

In this way, the Operations are managed with the best efforts in a direction that is
to facilitate future plans by achieving success in time and create milestones in the
industry by driving the company with excellence.
 Human Resource Department

Human resource is the crucial resource that a company can use to grow with the
work of the employees. HRM activities at Sharekhan start form induction to the specific
job training and are done by H/O at Mumbai. H/O takes a written test and selection
interview for filling up vacancies in branches but the recruitment is done by the branch
itself and the selection is performed by H/O from the screened applicants.

Any new recruit is firstly inducted to the company and sent to T & D department
that is covered under HRD and T & D programmes makes employees aware about all the
activities/jobs within the department he/she is to be recruited. Suppose if, I would be
recruited for finance department then the finance related employees are known to me wit
their work profiles, that is, what they really do?

Then the specific job training is provided at H/O and the person has to keep in
touch with the concerned department at H/O on internet because he/she has t solve many
conflicts arising in the investor’s mind and to have an up-to-date information regarding
the procedures and any new facilities or policies to resolve the problems of the clients. It
is a must for each employee because the employee is the people by whom the company
gets its customers and retains them.

HRP (Human Resource Planning), HRIS (Human Resource Information System),

Recruitment & Selection, Career planning and development, Assessment & development
of employees for Performance appraisal, etc. activities of managing the HR at Sharekhan
is maintained in a way to meet the requirements.

The corporate culture at Sharekhan is maintained in such a way that the people are
helpful to each other and eager to get the work done as soon as possible with a co-
operative thinking. An additional Rs.10000 is provided for each outlet of Sharekhan to
motivate its employees by performance appraisal and also the heads of each departments
6
and branches has to go through a 360 performance appraisal for maintaining the
consistency in growth of the company.

In the end we can say that the human resource of Sharekhan is a best managed
and used for the continuous growth and development of the company for its future plans

to be achieved time-to-time.
 Finance Department
Like blood is the most important factor in our body, Finance is the blood of any
business. Finance is needed for all the activities like production or services as well as
their distribution. The finance department directly influences all the functions of the other
departments. Also finance has to give equal importance to all departments. Finance is that
administrative area or set of administrative function in an organization may have the
means to carry out its objective as satisfactorily as possible. Sharekhan has special
accounts department for separate calculation of pay-in and pay-out of funds according to
the client’s Proft/Loss. Finance management is done at Sharekhan is done by managing
the stocks in the demat accounts and funds in the margin & trading accounts

Finance

DP Accounts

Finance is the lifeblood of an organization to continue its activities and the finance
management at Sharekhan can be divided into two major parts viz. DP (Depository
Participation) and Accounts management, which are shown in the figure given above.
DP means providing the facility to the clients for managing the stock bought/sold
by them. DP covers two major terminologies viz. settlements and the auctions which is a
part of managing demat account. Settlements as defined by SEBI are T+2, currently and
it means that the demat account of the clients are prone to be sufficient for selling a script
with no debit at all, i.e., the account must have the sold amount of stock to fulfill the
settlement after 2 days from trade-day. Generally, the timings are 9:30 and 3:00 as a
deadline for the client and he must provide the stock for giving a delivery to the buyer.
The chart show the total transaction between two clients:
C DP (Sharekhan) E DP (anyone) C

The chart shows the process that the request for selling and buying passes through
the DPs of the respective clients and finally the exchanges like SKSE (Saurashtra
Kutch Stock Exchange) becomes the controlling intermediary for the delivery of stocks
and this process is done in two days. Nowadays, as banks are becoming fast for E-Fund
Transfer (EFT) and Phone-banking is getting more popularity, SEBI is thinking to make
the financial market of India to have a maximum speed of transactions just like the other
nations in the world and proposing for T+1 settlement scheme but the system is not
enough competent for that thing. But soon or later we will have such a settlement system
in India, as said by Mr. J. N. Bajpai, chairman of SEBI.
 The client, if not capable of providing the delivery of say, 1000 shares of SAIL
then the Auctions are initiated by the exchanges and the client has to pay for the price
prevailing in the market with 4-5% penalty. The penalty can go on maximum to 20%
more than the market price of the sold stock. Generally, it is known as a buying auction
and a same kind of auction is for selling the stock for which the buyer was proved unable
to pay the price is carried out by exchange, known as the selling auction. And a debit or
credit note is provided in the respective case of auction to the clients, i.e., for buying
auction debit note is given on the T+4 basis and in case of selling auction the credit note
is given on T+5 basis. There are two types of auctions called as Internal auctions &
Market auctions, the internal auctions are defines as the auctions carried out between the
other shops of Sharekhan and market auctions are those as explained earlier, the auction
carried out in the market.

This is all about settlements but now switch to funds management or accounts
management at Sharekhan. The accounts are different that is the margin a/c for deposits of the
client and trading a/c for which Profit/Loss are settled. The collection of funds from the
clients who had a debit balance or made a loss are made on the next day of trading and the
payments to the profiting traders are made after two days of trading because the cheques are
received from H/O and then pay-out is done and Pay-in is as explained that amounts to be
taken from the clients. In this way, accounts are managed but in case if the client is unable to
pay, the deposit from the margin a/c is cut down to the payments and in case if a client is
having a credit balance in F&O trading though he had a debit balance in cash-NSE
& BSE trading, a JV request is sent to H/O for totaling the three balances. The main aim for
accounts management is that the clients must have a credit or no debit on the next day.

The DP services provided by Sharekhan are falling under the regulation of NSDL
(National Securities Depository Limited) and CDSL (Central Depository Services
Limited), organizations governed by SEBI to regulate the depository services in the
interest of the investors. So, the financial market in India is governed by Ministry of
finance under which two major bodies viz. SEBI & RBI are covered and under RBI the
banks and other financial institutions are covered while SEBI covers the exchanges,
NSDL & CDSL and the whole DP service providers with the brokers to the investors.

In this way we have gained a meaningful knowledge about India’s financial market and its
structure from this training at Sharekan. In this way, the finance function is carried out at
Sharekhan by following the guidelines given by SEBI. And the company is a private limited one
with its own policies for disclosing its financial statement.
 SWOT ANALYSIS OF SHAREKHAN :

(A) STRENGTH:
1) EMPLOYE MOTIVATION POLICY
2) RESEARCH TEAM
3) GOOD INFRASTRUCTURE
4) HELTHY FINACIAL MARKET
5) USER FRIENDLY WEB SITE
(B) WEAKNES
1) INSUFFICIENT ADVERTISEMENT POLICY
2) NO ACCESS TO THE RURAL MARKET

(C) OPPORTUNITY

1-Sharekhan having goog customer relation strategy so that it create good opportunity to
create goodwill and capture the market.
2-Growing initial public offer create opportunity to capture the new market
3- Positive outlook of people towards financial product becouse most of investor more about
financial instrument and working strategy of stock brokers.

(D) THREATS
1) MARKET UNCERTAINTY
2) STIFF COMPETITION
3) NEW ENTRY IN TO MARKET

GOVERNMENT POLICY
 FIANANCIAL ANALYSIS OF SHAREKHAN

LAST FIVE YEAR PROFIT AND LOSS A/C OF SHAREKHAN LTD AS UNDER. (Rs.in cr)
MARCH MARCH MARCH MARCH MARCH
2007
PARTICULARS 2011 2010 2009 2008

Income

Operating income 51.10 67.57 70.97 60.09 70.03

Expenses

Material Consumed 26.08 30.31 32.22 25.65 37.15

Manufacturing Expenses 6.99 10.36 9.32 7.06 8.45
Personnel Expenses 8.26 8.50 8.34 7.38 6.44
Adminstrative Expenses 9.54 4.25 3.96 3.93 3.05
Selling Expenses 0.00 10.43 9.17 7.75 9.28
Cost of sales 50.87 63.85 63.01 51.76 64.38

Operating Profit 0 .23 3.72 7.96 8.33 5.64

Other Recurring Income 0.57 0.21 0.17 1.98 1.82

Adjusted PBDIT 0 .80 3.92 8.12 10.31 7.46

Financial Expenses 4.84 4.55 4.16 3.06 2.40
Depreciation 1.53 1.13 1.10 0.99 0.76
Adjusted PBT -5.56 -1.76 2.86 6.26 4.30

Tax Charges -1.88 -0.18 1.45 1.65 1.92

Adjusted PAT -3.68 -1.58 1.41 4.61 2.38

Equity Dividend 0.00 0.00 1.10 1.10 0.00

Reported Net Profit -3.68 -1.23 1.49 4.48 3.64

 NET PROFIT FOR THE FIVE YEAR

YEAR NET PROFIT (RS.IN CR.)

2006-07 3.64
2007-08 4.48
2008-09 1.49
2009-10 (-1.23)
2010-11 (-3.68)

6
4.48
3.64
4

2 1.49

Net Profit
0

-2 -1.23

-4 -3.68
2006-07 2007-08 2008-09 2009-10 2010-11

As per the graph show n above, the net profit of the company in 2007- 08 was
increase to 0.76 cr. from the previous year. But after this period the figure was co ntinuously
decline. In 2010-11, the net profit was -3.68 that shows huge loss in this year compare to
previous year. The data regarding profit reflect the negative sign for the firm. The firm has to
take corrective step as fast as possible. The reason for the huge loss is financial crises.
 OPERATING INCO ME:

YEAR NET PROFIT (RS.IN CR.)

2006-07 70.03
2007-08 60.09
2008-09 70.97
2009-10 67.57
2010-11 51.10

80
70.03 70.97 67.57
70
60.09
60 51.1
50
40
Oper ating…
30
20
10
0
2006-07 2007-08 2008-09 2009-10 2010-11

The operating income show s the current earning capability of the firm form current
operations. Hear, the firm’s ability was reduced from the previous year that reflect the
ability was reduced in financ ial year 2010-11.
 BALANCE SHEET

LAST FIVE YEAR BALANCESHEET OF SHAREKHAN :

BALANCESHEET OF SHAREKHAN 2011 2010 2009 2008 2007
Equity share capital 18.33 18.33 18.33 18.33 18.33
Reserve and surplus -1.31 2.37 3.61 3.40 0.24

Loans and funds

Secured loan 10.84 31.38 35.72 26.46 17.20

UnSecured loan 35.75 9.32 5.87 7.27 4.75

Total 63.62 61.40 63.53 55.45 40.51
Uses of funds
Gross block 88.13 84.60 76.99 76.14 69.09
Less : Accumulated Depreciation 63.62 62.10 60.97 59.88 58.91
Net block 24.51 22.49 16.03 16.25 10.17

Capital work in progress 1.45 2.36 5.66 2.01 0.40

Investments 0.05 0.05 0.05 0.05 0.05

Current assets,loans and advances 60.99 60.78 67.28 56.51 43.38

Less current liabilities & provisons 23.38 24.29 25.50 19.37 13.49

Total net currunt assest 37.61 36.49 41.79 37.14 29.89

Total 63.62 61.40 63.53 55.45 40.51

Note

Book value of unquoted investment 0.05 0.05 0.05 0.05 0.05

Contigent liabilities 23.39 15.74 15.85 14.90 9.32

Numbers of equity share outstanding

( in lacs)
183.27 183.27 183.27 183.27 183.27
Cash flow statement

Last five year cash flow statement 2011 2010 2009 2008 2007
Net profit before tax 1.41 2.94 6.13 5.56 4.12

Net cash from operating activities 10.24 1.87 1.73 5.19 2.71
Net cash from investing activities 4.15 4.54 8.58 1.79 1.15
Net cash from financing actigities 6.67 2.78 8.69 2.41 2.20
Net decrease/increase in cash and cash
Equivalents 0.58 0.11 1.63 1.00 0.64

CASH FLOW ANALYSIS OF LAST FIVE YEAR :

OPERATING ACTIVITY :

YEAR CASH FLOW FROM OPERATING

ACTIVTIY
2006-2007 2.71
2007-2008 5.19
2008-2009 1.73
2009-2010 1.87
2010-2011 10.24

CASH FLOW FROM OPERATING ACTIVTIY

12

10

6
CASH FLOW FROM
4
OPERATING ACTIVTIY
2

0
INVESTING ACTIVITY :

YEAR CASH FLOW FROM INVESTING

ACTIVITY
2006-07 1.15
2007-08 1.79
2008-09 8.58
2009-10 4.54
2010-2011 4.15

CASH FLOW FROM INVESTING ACTIVITY

10
9
8
7
6
5
4 CASH FLOW FROM
3 INVESTING ACTIVITY
2
1
0

FINANACING ACTIVITY :
YEAR CASH FLOW FROM FINANCING
ACTIVITY
2006-07 2.20
2007-08 2.41
2008-09 8.69
2009-10 2.78
2010-2011 6.67

CASH FLOW FROM FINANCING ACTIVITY

10
9
8
7
6
5
4 CASH FLOW FROM
3 FINANCING ACTIVITY
2
1
0
 PART –II PROJECT STUDY :

(A)INRODUCTION OF PORTFOLIO MANAGMENT

SERVICES :

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 strategy called
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 –
these are 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 the benefit of the investors.
Investors may be institutions (insurance companies,pension funds,
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 of collective investments, whilst the more generic
fund management may refer to all forms of institutional 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 wealth management or portfolio management often
within the context of so-called "private banking".
The provision of 'investment management services' includes elements of
financial analysis, asset selection, stock selection, plan implementation
and ongoing monitoring of investments. Outside of the financial
industry, the term "investment management" is often applied to
investments other than financial instruments. Investments are often
meant to include projects, 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.
 (B)Needof PMS

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 choices also need to be different to
meet those needs. No single investment is likely to meet all the needs, so one should keep
some money in bank deposits and / liquid funds to meet any urgent need for cash and keep
the balance in other investment products/ schemes that would maximize the return and
minimize the risk. Investment allocation can also change depending on one’s risk-return
profile.
 (C)ObjectiveofPMS

There are the following objective which is full filled by Portfolio Management Services.

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 be marketable
that means, the securities must be listed and
traded in 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 involvement of time to meet urgent need for funds. Marketability
ensures liquidity to the portfolio.

4. Reasonable return: -
The investment should earn a reasonable return to upkeep the declining value of
money and be compatible with opportunity cost of the money in terms of current
income in the form of interest or dividend.

5. Appreciation in Capital: -
The money invested in portfolio should grow and result into capital gains.

6. Tax planning: -
Efficient portfolio management is concerned with composite 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. Portfolio managers achieve these objectives by effective investment
planning and periodical review of market, situation and economic environment
affecting the financial market.
 (D)PORTFOLIO MANAGEMENT PROCESS :
1.specification of investment objectives and constraints
2.choice of the asset mix
3.formulation of [portfolio strategy
4.selection of securities
5.portfolio execution

The Portfolio Construction of Rational investors wish to maximize the returns on their
funds for a given level of risk. All investments possess varying degrees of risk. Returns come
in the form of income, such as interest or dividends, or through growth in capital values (i.e.
capital gains).

The portfolio construction process can be broadly characterized as comprising the following
steps:

1.Settingobjectives.

The first step in building a portfolio is to determine the main objectives of the fund given
the constraints (i.e. tax and liquidity requirements) that may apply. Each investor has
different objectives, time horizons and attitude towards risk. Pension funds have long-term
obligations and, as a result, invest for the long term. Their objective may be to maximize
total returns in excess of the inflation rate. A charity might wish to generate the highest level
of income whilst maintaining the value of its capital received from bequests. An individual
may have certain liabilities and wish to match them at a future date. Assessing a client’s risk
tolerance can be difficult. The concepts of efficient portfolios and diversification must also
be considered when setting up the investment objectives

2. DefiningPolicy.

Once the objectives have been set, a suitable investment policy must be established.
The standard procedure is for the money manager to ask clients to select their preferred mix
of assets, for example equities and bonds, to provide an idea of the normal mix desired.
Clients are then asked to specify limits or maximum and minimum amounts they will allow
to be invested in the different assets available. The main asset classes are cash, equities
gilts/bonds and other debt instruments, derivatives, property and overseas assets.
Alternative investments, such as private equity, are also growing in popularity, Attaining
the optimal asset mix over time is one of the key factors of successful investing.
3. Applying portfoliostrategy.

At either end of the portfolio management spectrum of strategies are active and
passive strategies. An active strategy involves predicting trends and changing
expectations about the likely future performance of the various asset classes and
actively dealing in and out of investments to seek a better performance. For example, if
the manager expects interest rates to rise, bond prices are likely to fall and so bonds
should be sold, unless this expectation

is already factored into bond prices. At this stage, the active fund
manager should also determine the style of the portfolio. For
example, will the fund invest primarily in companies with
large market capitalizations, in shares of companies expected to
generate high growth rates, or in companies whose valuations are
low? A passive strategy usually involves buying securities to match a preselected
market index. Alternatively, a portfolio can be set up to match the investor’s choice of
tailor-made index. Passive strategies rely on diversification to reduce risk.
Outperformance versus the chosen index is not expected. This strategy requires
minimum input from the portfolio manager. In practice, many active funds are
managed somewhere between the active and passive extremes, the core holdings of the
fund being passively managed and the balance being actively managed.

4. Assetselections.

Once the strategy is decided, the fund manager must select individual assets in
which to invest. Usually a systematic procedure known as an investment process is
established, which sets guidelines or criteria for asset selection. Active strategies
require that the fund managers apply analytical skills and judgment for asset selection
in order to identify undervalued assets and to try to generate superior performance.
 5. Performanceassessments.

In order to assess the success of the fund manager, the performance of the fund is
periodically measured against a pre-
agreed benchmark – perhaps a suitable stock exchange index or
against a group of similar portfolios (peer group comparison).
Theportfolio construction process is continuously
iterative, reflecting changes internally and externally. For example,
expected movements in exchange rates maymake overseas
investment more attractive, leading to changes in asset
allocation. Or, if many large-scale investors simultaneously decide
to switch from passive to more active strategies, pressure will
be put on the fund managers to offer more active funds. Poor
performance of a fund may lead to modifications in individual asset
holdings or, as an extreme measure; the manager of the fund may
be changed altogether.
(E) Objective of R esearch :
My objective of research condected in summer intership his to analysais the

inversement preference and process of portfolio management service.

Research design :
A. Methodology:

(A)Primalry data:

A questionnaire schedule was prepared and the primary data was clloected.

(B)Secondary data:

→Company website
→Customer data base
→Company report’s
→Books and publications
→Related information from various websites.

(B.)Period study :

The study are conducted on 6th June to 31 Julie with help of data source available. Period
of study and analyzing primary data.

(C.)Type of research :

This is a descriptive research where survey method is adopted to collect primary

information from the investors using different scales as required secondary information for
the analysis.

(D).Sampling technique :

The sampling technique followed in this study is no-probability convenient sampling.

Simple random techniques are used to select the respondent from the available database.
The research work will be carried on the basis of structured questionnaire. The study is
restricted to the investors of VADODARA city only.

(E).Sample size :

The population being large the survey will be carried among 25 respondents who are the
clients of share khan limited.They will be considered adequate to represent the
characteristics of the entire population.
Data analysis

1. Investment preference among varies age groups:

Investment Age Group (in Years)

Avenues
< 20 20 – 31 – 40 41 – > 60
30 60

Equity 25 24 27 28 15

Debenture / Bonds 11 10 9 15 23

Bank Deposits 18 18 17 16 20

Insurance 20 24 22 21 14

Gold & Real Estate 18 15 15 12 17

Others 2 4 2 4 4
 30
25
Age Group (in
20 Years) < 20

15 Age Group (in

10 Years) 20 – 30
Age Group (in
5 Years) 31 – 40
0 Age Group (in
Years) 41 – 60
Age Group (in
Years) > 60

Interpretation:

From the above tables we can conclude that, all the age groups are give more
preference on investing in equity, except those who are more than sixty years. And
the second more preferable investment avenue is insurance. But the age group
which is more that sixty yeas gives more preference to invest in Debenture, Tax
saving bonds and then bank deposits.
2. Investment preference among various income levels:

Investment Annual Income (in Rs. Lakh)

Avenues <1 1–2 2 – 3.5 3.5 – 5 > 5

Equity 16 19 26 26 29

Debenture / Bonds 5 6 7 7 8

Bank Deposits 31 24 21 18 14

Insurance 15 17 18 20 21

Gold & Real Estate 3 4 5 8 9

Others 16 14 5 6 3
 35
30
Annual Income (in Rs.
25
Lakh) < 1
20
Annual Income (in Rs.
15 Lakh) 1 – 2
10 Annual Income (in Rs.
5 Lakh) 2 – 3.5
0 Annual Income (in Rs.
Lakh) 3.5 – 5
Annual Income (in Rs. Lakh)
>5

Interpretation:
The above table reveals that higher income levels are giving more preference to invest in
equity where as lower income levels given more preference to invest in bank deposits. It
implies that the higher income level groups are preferred to take more risk in investment
rather than lower income level. And those who are taken more risk in investment are
preferred to invest in equality rather than any investment avenues.

51
BIBILOGRAPHY

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

52