A study on the Equity market

Summer Internship Project& Research submitted to Jain (Deemed-to-be

University) in partial fulfillment of the requirements for the award of

Master of Business Administration

Submitted by

Sagar G
Register No.: 18MBARB043

under the guidance of

DR.J.POORNIMA
Professor

Jain (Deemed-to-be University)

Bangalore

2019
 DECLARATION

I hereby declare that the Summer Internship Project &

Researchundertaken by me at Wealthsecure, Bangalore,

under the guidance of DR.J.POORNIMA, Jain (Deemed-

to-be University), Bangalore is an independent work.

The report is towards the partial fulfillment of the Master

of Business Administration course of Jain (Deemed-to-

be University), Bangalore for the batch of 2018-20.

Bangalore

Date: SAGAR G
DR.J.POORNIMA

Professor

Jain (Deemed-to-be University)

CERTIFICATE

I certify that this research entitled “A study on the equity market”

submitted to Jain (Deemed-to-be University) in partial fulfillment of the

requirements for the award of MBA, is a record of independent research

work carried out by Mr. Sagar.G under my supervision and guidance.

This work has not formed the basis for the award of any Degree and

has not been submitted previously to any other College/University.

Bangalore DR.J.POORNIMA

August, 2019 Research Mentor

 TABLE OF CONTENTS

Page No.
List of Tables I

List of Graphs II

Chapter I Introduction and Company Profile 1 – 10

1.1 Introduction to the topic
1.2 Company Profile
1.3 Major departments of the company
Chapter II Report on Work Profile 11 –26
2.1 Activities carried out by the student in the company
Expectations set and achievement( targets achieved) during
2.2
the program
2.3 Learning from each of the tasks carried out
Chapter III Review of Literature 27 – 36

Chapter IV Research Methodology 36 – 46

4.1 Statement of the Problem
4.2 Objectives of the study
4.3 Scope of the study
4.4 Hypothesis of the study
4.5 Methodology
4.5.1 Selection of Sample
4.5.2 Data collection Methods
4.5.3 Plan of Analysis
4.6 Limitations of the study

Chapter V Data Analysis 47 – 86

5.1
5.2
Chapter VI Findings 87 – 92
6.1
6.2
Chapter
Conclusions & Recommendations 92 – 95
VII
7.1
7.2

Bibliography
Appendices
A
B
 LIST OF TABLES

Sl. No. Table No. Title of table Page No.

1 3.1 EVA values of companies

2 3.2 Analysis of EVA values – Annual basis

3 3.3 Classification of companies based on EVA

LIST OF GRAPHS

Graph
Sl. No. Title of graph Page No.
No.

1 3.1

2 3.2

3 4.1

4 4.2
CHAPTER 1: INTRODUCTION AND COMPANY PROFILE
 COMPANY PROFILE

For every individual it is important to make financial planning to achieve their desired goals.
Therefore WealthSecure is the platform which offers well-researched solutions that can help to
take the right decisions in our life, centered around wealth creation, preservation and sharing it
with our next generation.

They empower individuals with research and accountability:

They understand individuals stated and unstated goals, visualising multiple challenges,
showcasing various alternatives and identifying the solutions that best suit.

The process of investing and investments requires a lot of homework and a passion for finding
what really works. It requires dedication of time and resources to analyse all the possible
solutions before identifying the simplest solution that works for the individual.

As an advisor, wealth secure undertake the deepest research possible on all aspects of investing
and share the basis for ongoing advice in the most transparent manner necessary. WealthSecure
believes it to be the only way to ensure success and earn trust.

Also , they pay attention to all the details that the individual volunteer through a financial
planning exercise and help to find out who individual are as an investor and who they need to be,
to meet the financial goals. With the end objective to maximize wealth creation and smoother
risk management, and shall help implementing the necessary strategies through various financial
products like Mutual Funds, Stocks, PMS, Bonds, etc.
 AIM OF THE WEALTH SECURE

To Undertake the deepest research possible

Transparent Steps

Maximum wealth Creation

 UNIQUE SELLING POINTS OF WEALTH SECURE:

 Paperless Onboarding and KYC

 Financial Planning
 Multi-Mode Execution
 Model Portfolio Led Execution
 Monitoring
 Robo Advisory (Intellivest)
 Model Portfolios of Stocks and Funds
 Access to Investment Products
 Market Timing Models
 Portfolio Builder/ Build Your Own Strategy
 Dashboards
 Learn center
PAPERLESS ONBOARDING AND KYC:

e-KYC reduces turnaround time and paperwork.

WealthSecure platform allows to complete our e-KYC process in real-time, by submitting

scanned images of your PAN card, address proof and your photograph. No more printing, form-
filling and enduring a logistics nightmare.
If we are already KYC compliant, the refined processes on the platform will fetch your KYC
records & onboard you electronically in a jiffy thanks to the documents that we already have on
hand.

FINANCIAL PLANNING

Look before you leap. Financial planning involves collecting, organizing and assimilating many
minute details. It requires making assumptions about future and the flexibility to modify it to
suit the several scenarios playing in the mind.
This essential process need not be daunting. Infact, it can be fun and insightful, thanks to the
creative ways in which the impact of each decision is visually depicted oin the platform. What’s
more, the goals that have set can be tracked against timelines and expectations.

MULTI-MODE EXECUTION

Individual schedules are getting busier. The challenges of coordinating all logistics and
executing within time-limits can get daunting especially if one considers the impact of missed
opportunities.
To make life simple, WealthSecure sets in motion an integrated operational & technological
arrangement that is networked with manufacturers, brokers, payment gateways and many more –
all waiting to serve at the click of a button.
MODEL PORTFOLIO LED EXECUTION:

Different portfolios for similar risk appetites are a result of advisors following random portfolio
construction, in the name of customisation. This decreases efficiency in the monitoring, with too
many suggestions made across clients. Unless individual have model portfolios that can
transparently track, it may be difficult to know if the advisor’s best choices are implemented or
not.

At WealthSecure, need to do is decide on long term asset allocation as an investor, depending

on who you are – risk profile based, or who you need to be – goal based or a mix of it and follow
the model portfolio most suitable to you. We shall take care of the rest. Be it the selection of the
best fund managers suitable to you, suggesting allocations based on market conditions and
execute it the same time as with everyone.

The latest updated recommendations of WealthSecure will automatically be replicated for your
new allocations, having rebalanced the accumulated investments. So the next time you decide to
add to your portfolio, think of just the amount you wish to invest. Nothing else.

MONITORING

Happy investors are those who are able to see the progress of their investments clearly. Happier
are those who can see it exceed their own initial expectations and other passive alternatives. By
understanding that investors are typically made to navigate mountainous reports to find simple
truths about their progress vis-a-vis the original plan. And whether only permissible risks have
been taken to achieve it.

To help individual make sense of it all, WealthSecure brings the Gold Standard in portfolio
reporting which is advanced, yet simple. Through unique reporting formats and analytical tools,
will know whether portfolio’s journey was smoother than the markets and if it was more
beneficial having followed wealth secure advice.
ROBO ADVISORY (INTELLIVEST)

Imagine calculating a million combinations to come up with one optimal probability of making
or losing money. Build probability of success in the future, based on an exhaustive study of the
past. The Intellivest ‘Robo-Advisory’ process does just that. Intellivest hunts amongst million
plus combinations, for that one portfolio with the greatest chance of success based on
parameters. It looks into data across Equity, Cash, Gold and Debt since 1979, analyses thousands
of funds and their daily track-record since their inception and marry it with latest views on
markets. All of this in less than 10 seconds. Given another minute… can actually invest in a
basket of the appropriate model portfolio of funds and get back to the life.

When in short of time, Intellivest helps to replicate wealthsecure’s best ideas that are aligned to
evolving views on markets and fund managers.

MODEL PORTFOLIOS OF STOCKS AND FUNDS.

Wouldn’t it be great if someone could liaise with the brightest minds in the investment and
advisory space on behalf and crystalize the best mixture of ongoing investments in response to
market conditions. On an ongoing basis, the advisory team at WealthSecure conducts in-depth
research on all asset classes and puts together the right mixes for various risk appetite levels.
These well thought through strategies are often back tested, before they are put forth as
suggested model portfolios.
ACCESS TO INVESTMENT PRODUCTS

Markets and its risks vary depending on the perception of investors. And it may change in
response to their perception of experiences and reading of market conditions. Therefore, to
design one’s portfolio that accommodates several shades of comfort levels, wealth secure is
well armed with a plethora of solutions. Both the simple and sophisticated. WealthSecure
organizes it all, acting as a one stop shop, helping preserve, grow and enhance wealth, by
providing insightful value added advice and solutions to fulfil the goals.

MARKET TIMING MODELS

Markets revert to mean. But to know when…is a like the hunt for the Holy grail of investing. It’s
probably a tough hunt but not an impossible one. They tell us that if one were to focus on the gap
between the ground reality and investors perception of it, it’s easier to know when the gap is at
the widest, based on history. At such extremes, it is easier to avoid risk or fear and build
portfolios accordingly. More often than not and sooner than later, calculations will pay-off.
To help keep an eye on the evolving market risks and the opportunity it presents, has developed
WeTAAf – WealthSecure Tactical Asset Allocation framework. Its primary duty is to sound its
client out as to when the odds of making money for are in client’s favour and when they are not,
based on common sense that need not be uncommon.

PORTFOLIO BUILDER/ BUILD YOUR OWN STRATEGY

How about being one’s own investment manager and building own portfolio? Portfolio Builder
or the DIY (Do It Yourself) model enables to simulate and back-test the effectiveness of
portfolio construction of stocks.
Through fundamental factors can distinguish the quality of companies and their relative
attractiveness. Can then compare strategy of investing in such like companies and compare it to
the best of mutual fund managers. Can be sure if investing with fund managers is worth it. And
when it comes to funds, multi-factor Star rating process of funds, makes sure that only the best
are recommended based on stated needs.
DASHBOARDS

At Wealthsecure they record all the facets of relationships and make it available to client on-
demand. Be if the portfolio that needs to be rebalanced, the risk profile that needs to be updated
or the FMPs that are likely to mature. Will organize it all and alert client for further action.

LEARN CENTRE

Most advisory is rooted in information arbitrage, between those who know and those who wish
they knew. As a responsible Wealth Manager, may want to cover all bases and be several steps
ahead of the knowledge levels of competition. As an added requirement, individual may want to
make sure that your staff is well informed and trained. In an era where institutions themselves
grapple with the challenges of imparting training to their staff, imagine having access to
insightful perspectives in one place and training individual at convenience.
The Learn Centre where staff can be encouraged to learn the nuances of Wealth
management concepts and practices and test themselves. Surely wealth secure want those who
represent us to be at their possible best.
Benefits

 Curated explanatory notes, presentations and videos

 Impart regulatory updates
 Test and certify
 ORGANISATION CHART

D.A.DHANANJAYA (CEO & MD)

SWETHA B.K ASHWINI H.M

(HEAD-HR & ADMIN) (INVESTMEN COUNSELOR)

GAURAV (Marketing Head)

CHAPTER 2 : WORK PROFIL
Wealthsecure is an Advisory firm which provides guidelines regarding the investments made by
the individual investors in the stock market .They help in maximizing the return and mitigating
the losses. They also provide financial planning for individuals regarding their investments and
help them in planning their finances according to the goals of the individuals.

I got an opportunity to work in 4 major fields during my internship :

1. Helping the clients to onboard themselves on the application and explain their financial
planning repots.

2. Designing corporate programes.

3. Data entry.

4. Perpetration of PPT for the staff

Detailed description of each job role :

1. Helping clients onboard themselves on the application and explain their financial planning
reports:

I was given the opportunity by the company to talk in call directly with their clients and help
them in the on boarding process. Here I had to help the clients onboard themselves by use of
screen sharing, I was directing the clients on the call the entire process such as helping them
upload their documents like Aadhar , pan card, salary slip etc.

I had to explain to the clients their financial planning reports where I told them the goals

they can achieve with their level of income, the investment strategies they had to adopt to
achieve those goals and the term with in which they can achieve it by the use of report generated
by the system.
2. Designing corporate presentation :

I was given an opportunity to work on designing the corporate presentations. I had to

design the various corporate banners for the company .The company would give me the

data regarding the time venue etc and I was asked to deliver the programme schedule

and even the banners and invitations for such programmes.

3. Data entry :

I had to complete certain amount of entries regarding their client information and their customer
base. I had finish around 500 entries each day along with the regular work I used to do.

4. Perpetration of PPT for the staff :

I was asked to make presentations for the staff for various topics such as on boarding of clients
through applications on phone and on desktop. Presentation on financial planning and I had to
make a separate presentation on the scams occurred in equity market as apart of my internship
final presentation.

Expectations of the company :

The company expected me to deliver best quality work in the given time. I was strictly asked to
adhere to the time limit given by the company .They expected to maintain the corporate decorum
such as being on time, being in formals e.t.c.

The company had set expectations regarding the number of clients I on boarded. I had to onboard
at least two clients from their gi v en list of clients to be on boarded.

The company expected me to complete the programme schedule and corporate

invitations with in 2 to 3hours from the time the task was assigned.
Achievements:

I was always praised for my creativity in the creation of the corporate invites and the kind of
presentations I made in the organisation.

Learning's and out comes from Job role:

Internship has helped me understand how the corporate works i.e. it has helped underst and what
are the needs and requirements by the companies, how we should behave etc. I got an
opportunity to experience corporate culture which is totally different from the student culture. As
students its essential for us to under the corporate culture before we step in to the corporate life.
This internship was a great opportunity for me.

I was given an opportunity to attend corporate programme conducted by I DFC bank on mutual
funds. This gav e me an opportunity to understand vaious aspects of mutual funds such as which
funds to invest in and which fund swear enot supposed to. Iven got an opportunity to meet wealth
managers of various mutual funds and got an insight on the career as a wealth manager . l learnt
the various mutual funds schemes which are yielding high and low returns.

The internship has helped me understand wealth management in detail and the various options
available to invest in such as gold, equity , debt , real estate, mutual funds, derivatives e.t c. I got
to learn the various types of investors behaviour such as moderately aggressive, aggressive,
moderately conservativ e, conservative and balanced.

I even got an opportunity to understand the kind of investment each investor should make based
on their investment behaviour .It has helped me understand when to buy the shares and when not
to buy the shares. We should always buy the shares when the market is bullish in nature. To get
high returns we should always hold the shares for a long period of time i.e. for at least 5 to 10
years.

During my internship days I even got to learn about how everyday events impacted the stock
markets. We had to discuss everyday’s news and understand how the stock market affected by it
. This has helped me develop the analysis of how everyday events has impacted the stock market
.
Overall it has helped me understand the various aspects of stock market and how it impacted the
investors holding pattern. I got an opportunity to understand what is portfolio and what are then
ways through which an optimum portfolio can be managed.

It has helped me understand the various aspects of financial planning. What are the methods
through which goals can be achieved, the various types of goals. It has helped me analyse the
kind of information required for goal planning of an individual .

I have learnt the methods through which corporate presentations are done by use of slide model ,
use of similar colours in the PPT as the company logo and the consolidation of data into crisp
points. The internship has helped me develop better interpersonal skills, time management skills
and to be more confident and vocal while speaking.
CHAPTER3 : LITERATURE REVIEW
REVIEW OF LITERATURE

The Indian Equity Market is more popularly known as the Indian Stock Market. The Indian
equity market has become the third biggest after China and Hong Kong in the Asian region.
According to the latest report by ADB, it has a market capitalization of nearly $600 billion. As of
March 2009, the market capitalization was around $598.3 billion (Rs 30.13 lakh crore) which is
one-tenth of the combined valuation of the Asia region. The market was slow since early 2007
and continued till the first quarter of 2009.

A stock exchange has been defined by the Securities Contract (Regulation) Act, 1956 as an
organization, association or body of individuals established for regulating, and controlling of
securities.

The Indian equity market depends on three factors -

 Funding into equity from all over the world

 Corporate houses performance

 Monsoons

The stock market in India does business with two types of fund namely private equity fund and
venture capital fund. It also deals in transactions which are based on the two major indices -
Bombay Stock Exchange (BSE) and National Stock Exchange of India Ltd. (NSE).

The market also includes the debt market which is controlled by wholesale dealers, primary
dealers and banks. The equity indexes are allied to countries beyond the border as common
calamities affect markets. E.g. Indian and Bangladesh stock markets are affected by monsoons.

The equity market is also affected through trade integration policy. The country has advanced
both in foreign institutional investment (FII) and trade integration since 1995. This is a very
attractive field for making profit for medium and long term investors, short-term swing and
position traders and very intra day traders.
The Indian market has 23 stock exchanges. The larger companies are enlisted with BSE and
NSE. The smaller and medium companies are listed with OTCEI (Over The counter Exchange of
India). The functions of the Equity Market in India are supervised by SEBI (Securities Exchange
Board of India).

Gupta (1972) in his book has studied the working of stock exchanges in India and has given a
number of suggestions to improve its working. The study highlights the' need to regulate the
volume of speculation so as to serve the needs of liquidity and price continuity. It suggests the
enlistment of corporate securities in more than one stock exchange at the same time to improve
liquidity. The study also wishes the cost of issues to be low, in order to protect small investors

Panda (1980) has studied the role of stock exchanges in India before and after independence. The
study reveals that listed stocks covered four-fifths of the joint stock sector companies.
Investment in securities was no longer the monopoly of any particular class or of a small group
of people. It attracted the attention of a large number of small and middle class individuals. It
was observed that a large proportion of savings went in the first instance into purchase of
securities already issued.

Gupta (1981) in an extensive study titled `Return on New Equity Issues' states that the
investment performance of new issues of equity shares, especially those of new companies,
deserves separate analysis. The factor significantly influencing the rate of return on new issues to
the original buyers is the `fixed price' at which they are issued. The return on equities includes
dividends and capital appreciation. This study presents sound estimates of rates of return on
equities, and examines the variability of such returns over time.
Jawahar Lal (1992) presents a profile of Indian investors and evaluates their investment
decisions. He made an effort to study their familiarity with, and comprehension of financial
information, and the extent to which this is put to use. The information that the companies
provide generally fails to meet the needs of a variety of individual investors and there is a
general impression that the company's Annual Report and other statements are not well received
by them.

L.C.Gupta (1992) revealed the findings of his study that there is existence of wild speculation in
the Indian stock market. The over speculative character of the Indian stock market is reflected in
extremely high concentration of the market activity in a handful of shares to the neglect of the
remaining shares and absolutely high trading velocities of the speculative counters. He opined
that, short- term speculation, if excessive, could lead to "artificial price". An artificial price is one
which is not justified by prospective earnings, dividends, financial strength and assets or which is
brought about by speculators through rumours, manipulations, etc. He concluded that such
artificial prices are bound to crash sometime or other as history has repeated and proved.

Nabhi Kumar Jain (1992) specified certain tips for buying shares for holding and also for selling
shares. He advised the investors to buy shares of a growing company of a growing industry. Buy
shares by diversifying in a number of growth companies operating in a different but equally fast
growing sector of the economy. He suggested selling the shares the moment company has or
almost reached the peak of its growth. Also, sell the shares the moment you realise you have
made a mistake in the initial selection of the shares. The only option to decide when to buy and
sell high priced shares is to identify the individual merit or demerit of each of the shares in the
portfolio and arrive at a decision.

Pyare Lal Singh (1993) in the study titled, Indian Capital Market - A Functional Analysis,
depicts the primary market as a perennial source of supply of funds. It mobilises the savings
from the different sectors of the economy like households, public and private corporate sectors.
The number of investors increased from 20 lakhs in 1980 to 150 lakhs in 1990 (7. 5 times). In
financing of the project costs of the companies with different sources of financing, the
contribution of the securities has risen from 35.01% in 1981 to 52.94% in 1989. In the total
volume of the securities issued, the contribution of debentures / bonds in recent years has
increased significantly from 16. 21% to 30.14%.
Sunil Damodar (1993) evaluated the 'Derivatives' especially the 'futures' as a tool for short-term
risk control. He opined that derivatives have become an indispensable tool for finance managers
whose prime objective is to manage or reduce the risk inherent in their portfolios. He disclosed
that the over-riding feature of 'financial futures' in risk management is that these instruments tend
to be most valuable when risk control is needed for a short- term, i.e., for a year or less. They
tend to be cheapest and easily available for protecting against or benefiting from short term price.
Their low execution costs also make them very suitable for frequent and short term trading to
manage risk, more effectively.

R.Venkataramani (l994) disclosed the uses and dangers of derivatives. The derivative products
can lead us to a dangerous position if its full implications are not clearly understood. Being off
balance sheet in nature, more and more derivative products are traded than the cash market
products and they suffer heavily due to their sensitive nature. He brought to the notice of the
investors the 'Over the counter product' (OTC) which are traded across the counters of a bank.
OTC products (e.g. Options and futures) are tailor made for the particular need of a customer and
serve as a perfect hedge. He emphasised the use of futures as an instrument of hedge, for it is of
low cost.

Amanulla & Kamaiah (1995) conducted a study to examine the Indian stock market efficiency
by using Ravallion co integration and error correction market integration approaches. The data
used are the RBI monthly aggregate share indices relating five regional stock exchanges in India,
viz Bombay, Calcutta, Madras, Delhi, Ahmedabad during 1980-1983. According to the authors,
the co integration results exhibited a long-run equilibrium relation between the price indices of
five stock exchanges and error correction models indicated short run deviation between the five
regional stock exchanges. The study found that there is no evidence in favour of market
efficiency of Bombay, Madras, and Calcutta stock exchanges while contrary evidence is found in
case of Delhi and Ahmedabad.

Pattabhi Ram.V. (1995) emphasised the need for doing fundamental analysis and doing Equity
Research (ER) before selecting shares for investment. He opined that the investor should look for
value with a margin of safety in relation to price. The margin of safety is the gap between price
and value. He revealed that the Indian stock market is an inefficient market because of the
absence of good communication network, rampant price rigging, and the absence of free and
instantaneous flow of information, professional broking and so on. He concluded that in such
inefficient market, equity research will produce better results as there will be frequent mismatch
between price and value that provides opportunities to the long-term value oriented investor. He
added that in the Indian stock market investment returns would improve only through quality
equity research.

Karajazyk (1995) investigated one measure of financial integration between equity markets. He
used a multifactor equilibrium Arbitrage pricing theory to define risk and to measure deviations
from the “Law of one price”. He applied the integration measure to equities traded in 24
countries (four developed and 20 emerging). He found that the measure of market segmentation
tends to be much larger for emerging markets than for developed markets, which flows into or
out of the emerging markets. The measure tends to decrease over time, which is consistent with
growing levels of integration. Large values of adjusted mis-pricing occur around periods in
which capital controls change significantly. Finally, he found asymmetric integration
relationship; stock markets of developed nations are more integrated than those of emerging
nations.

Debjit Chakraborty (1997) in his study attempts to establish a relationship between major
economic indicators and stock market behaviour. It also analyses the stock market reactions to
changes in the economic climate. The factors considered are inflation, money supply, and growth
in GDP, fiscal deficit and credit deposit ratio. To find the trend in the stock markets, the BSE
National Index of Equity Prices (Natex) which comprises 100 companies was taken as the index.
The study shows that stock market movements are largely influenced by, broad money supply,
inflation, C/D ratio and fiscal deficit apart from political stability.

Redel (1997) concentrated on the capital market integration in developing Asia during the period
1970 to 1994 taking into variables such as net capital flows, FDI, portfolio equity flows and bond
flows. He observed that capital market integration in Asian developing countries in the 1990‟s
was a consequence of broad-based economic reforms, especially in the trade and financial
sectors, which is the critical reason for economic crises which followed the increased capital
market integration in the 1970s in many countries will not be repeated in the 1990s.
He concluded that deepening and strengthening the process of economic liberalization in the
Asian developing countries is essential for minimizing the risks and maximizing the benefits
from increased international capital market integration.

Avijit Banerjee (1998) reviewed Fundamental Analysis and Technical Analysis to analyse the
worthiness of the individual securities needed to be acquired for portfolio construction. The
Fundamental Analysis aims to compare the Intrinsic Value (I.V.) with the prevailing market
price (M.P) and to take decisions whether to buy, sell or hold the investments. The fundamentals
of the economy, industry and company determine the value of a security. If the 1.V is greater
than the M.P., the stock is under priced and should be purchased. He observed that the
Fundamental Analysis could never forecast the M.P. of a stock at any particular point of time.
Technical Analysis removes this weakness. Technical Analysis detects the most appropriate time
to buy or sell the stock. It aims to avoid the pitfalls of wrong timing in the investment decisions.
He also stated that the modern portfolio literature suggests 'beta' value p as the most acceptable
measure of risk of scrip. The securities having low P should be selected for constructing a
portfolio in order to minimise the risks.

Madhusudan (1998) found that BSE sensitivity and national indices did not follow random walk
by using correlation analysis on monthly stock returns data over the period January 1981 to
December 1992.

Arun Jethmalani (1999) reviewed the existence and measurement of risk involved in investing in
corporate securities of shares and debentures. He commended that risk is usually determined,
based on the likely variance of returns. It is more difficult to compare 80 risks within the same
class of investments. He is of the opinion that the investors accept the risk measurement made by
the credit rating agencies, but it was questioned after the Asian crisis. Historically, stocks have
been considered the most risky of financial instruments. He revealed that the stocks have always
outperformed bonds over the long term. He also commented on the 'diversification theory'
concluding that holding a small number of non-correlated stocks can provide adequate risk
reduction. A debt-oriented portfolio may reduce short term uncertainty, but will definitely reduce
long-term returns. He argued that the 'safe debt related investments' would never make an
investor rich. He also revealed that too many diversifications tend to reduce the chances of big
gains, while doing little to reduce risk. Equity investing is risky, if the money will be needed a
few months down the line. He concluded his article by commenting that risk is not measurable or
quantifiable. But risk is calculated on the basis of historic volatility. Returns are proportional to
the risks, and investments should be based on the investors' ability to bear the risks, he advised.

Suresh G Lalwani (1999) emphasised the need for risk management in the securities market with
particular emphasis on the price risk. He commented that the securities market is a 'vicious
animal' and there is more than a fair chance that far from improving, the situation could
deteriorate.

Bhanu Pant and Dr. T.R.Bishnoy (2001) analyzed the behaviour of the daily and weekly returns
of five Indian stock market indices for random walk during April 1996 to June 2001.They found
that Indian Stock Market Indices did not follow random walk.

Nath and Verma (2003) examine the interdependence of the three major stock markets in south
Asia stock market indices namely India (NSE-Nifty) Taiwan (Taiex) and Singapore (STI) by
employing bivariate and multivariate co integration analysis to model the linkages among the
stock markets, No co -integration was found for the entire period (daily data from January 1994
to November 2002).They concluded that there is no long run equilibrium.

Debjiban Mukherjee (2007) made a comparative Analysis of Indian stock market with
International markets. His study covers New York Stock Exchange (NYSE), Hong Kong Stock
exchange (HSE), Tokyo Stock exchange (TSE), Russian Stock exchange (RSE), Korean Stock
exchange (KSE) from various socio- politico-economic backgrounds. Both the Bombay Stock
exchange (BSE) and the National Stock Exchange of Indian Limited (NSE) have been used in
the study as a part of Indian Stock Market. The main objective of this study is to capture the
trends, similarities and patterns in the activities and movements of the Indian Stock Market in
comparison to its international counterparts. The time period has been divided into various eras
to test the correlation between the various exchanges to prove that the Indian markets have
become more integrated with its global counterparts and its reaction are in tandem with that are
seen globally. The various stock exchanges have been compared on the basis of Market
Capitalization, number of listed securities, listing agreements, circuit filters, and settlement. It
can safely be said that the markets do react to global cues and any happening in the global
scenario be it macroeconomic or country specific (foreign trade channel) affect the various
markets.

Juhi Ahuja (2012) presents a review of Indian Capital Market & its structure. In last decade or
so, it has been observed that there has been a paradigm shift in Indian capital market. The
application of many reforms & developments in Indian capital market has made the Indian
capital market comparable with the international capital markets. Now, the market features a
developed regulatory mechanism and a modern market infrastructure with growing market
capitalization, market liquidity, and mobilization of resources. The emergence of Private
Corporate Debt market is also a good innovation replacing the banking mode of corporate
finance. However, the market has witnessed its worst time with the recent global financial crisis
that originated from the US sub-prime mortgage market and spread over to the entire world as a
contagion. The capital market of India delivered a sluggish performance.
CONCLUSION

Stock Market is the mitigation of risk through the spreading of investments across multiple
entities, which is achieved by the pooling of a number of small investments into a large bucket.
Stock Market is the most suitable investment for the common man as it offers an opportunity to
invest in a diversified, professionally managed portfolio at a relatively low cost. The review of
literature has brought to light that

Enlistment of corporate securities in more than one stock exchange at the same time improves
liquidity of securities and functioning of stock exchange- According to Gupta.

There is existence of wild speculation in the Indian stock market-According to L.C. Gupta.

Risk is not measurable or quantifiable. But risk is calculated on the basis of historic volatility -
According to Arun Jethmalani.

Indian Stock Market Indices did not follow random walk- According to Bhanu Pant and Dr.
T.R. Bishnoy.

Stock market movements are largely influenced by, broad money supply, inflation, C/D ratio
and fiscal deficit apart from political stability- According to Debjit Chakraborty.

There are theories like the Fundamental analysis, Technical analysis etc. to evaluate the
securities- According to Avijit Banerjee.

Low execution costs make the derivatives especially futures, very suitable for frequent and short
term trading to manage risk, more effectively- According to Sunil Damodar.
 CHAPTER 4 : RESEARCH METHODOLOGY

Problem statement :
‘SUTUDY ABOUT THE EQUITY MARKET AND ITS VARIOUS COMPONENTS ’

Data sources :

This report is fully prepared using primary data and secondary data,
And primary data is collected by conducting survey by using Google form and secondary
data is collected by studying previous reports, articles and websites.

Sampling :
Sample is collected by by different methods by asking questioners which i had prepared,
to people from different set of social and economic class,to know about how much they
know about equity market and instruments related to equity market.
1.Sharing Google forms which had questioners.
2. It was also collected through personal visits to persons,
3.By formal and informal talks and through filling up the questionnaire prepared. The data
has been analyzed by using mathematical/Statistical tool.

Scope of study :
1.To know how well are people informed about the equity market.
2.To help investors identify various ways through which they can actually mitigate the risk of
loss of return during market crashes. With the use of technological advancements like artificial
intelligence which help the individual investors change their asset allocation and minimize their
risk of loss.
3.How much people are aware of the weath managers and do they invest their money in
equity markets.
4.To study on how th

Objective :
Main objective of studying about equity market is to know about the various components and
instruments of it and what are the different factors which influences the debt market, as of now I
got to know that investing in equity instrument reduces the risk are we can say it mitigates the
risk so it could be the best way to balance the portfolio.
As I explained about the debt instruments in the third chapter it gives decent return and it will be
regulated by two government bodies which are RESERVE BANK OF INDIA (RBI) and
SECURITY EXCHANGE BOARD OF INDIA (SEBI),

Research Methodology

 Firstly with the help of the company’s guidance I understood about stock market sector
and role of wealth managers in this sector.
 Use of google forms to conduct a survey on how aware are the investors about such
applications.
 Use of the artificial intelligence software of the company to understand how it will help
the investors.

Research Design: Casual research design (because of examination into how AI can give
better returns and help investors reduce loss with the fluctuations in the stock market)

Data collection method: Use of Survey method (Google forms) and various data
collection websites such as Money Control, Advisorkhoj, Investopedia etc.

Data analysis method: Use of various statistical tools like pie chart method of analysis for
the interpretation of responses by the sample group.
Use of the artificial intelligence application such as Wealthsecure to examine how
accurate AI is in terms of mitigating the loss of investors

Sample group selection: Use of convenience method of sampling based on the

availability time of the investors.
Limitations to the study:

I was not given the permission to show the exact operation of the application by the company to
analyse the data regarding how the AI changes the data. However they did walk me through the
process of how the application works and I am doing the based on the study data collected in the
same procedure.
 CHAPTER 5 : DATA ANALYSIS

CHAPTER 6 : FINDINGS AND RECOMMANDATIONS

Bibliography:

1. www.wealthsecure.com (company website)

2. www.investopedia.com

3. www.wikipedia.com

4. Other company provided documents.