A

PROJECT REPORT
ON
A COMPARATIVE STUDY OF
“COMPARISON BETWEEN INVESTMENT IN EQUITY AND MUTUTAL
FUND ”

FROM :-
MOTILAL OSWAL FINANCIAL SERVICES LIMITED UNIT INDORE

SUBMITTED TO
AWADHESH PRATAP SINGH UNIVERSITY, REWA (M.P.)

FOR THE AWARD OF

MASTER OF BUSINESS ADMINISTRATION
MBA (SEMESTER-IV)

SUBMITTED BY:- PROJECT GUIDE MENTOR

SWAYAMVER PROF.PRSHANT MISHRA NEERAJ KUMAR
VERMA R.M. MOFSL INDOR E

VINDHYA INSTITUTE OF MANAGEMENT & RESEARCH,

SATNA (M.P.)
2022-23

GUIDE’S CERTIFICATE
This is to certify that SWAYAMBER VERMA has satisfactorily completed the
Project work on “A COMPARATIVE STUDY OF “COMPARISON BETWEEN
INVESTMENT IN EQUITY AND MUTUTAL FUND ”
under my guidance for the partial fulfillment of MBA submitted to Awadhesh
Pratap Singh University, Rewa during the academic year 2022-23
To best of my knowledge and belief the matter presented by him is original
work and not copied from any source. Also this report has not been submitted
earlier for the award of any Degree of Awadhesh Pratap Singh University,
Rewa.

Place: Satna PROF. PRASHAN

MISHRA
Date: / / 2022 (Project Guide)

VINDHYA INSTITUTE OF MANAGEMENT & RESEARCH,

SATNA (M.P.)
2022-23

DECLARATION
I undersigned, hereby declare that this project report entitled “A
COMPARATIVE STUDY OF “COMPARISON BETWEEN INVESTMENT IN
EQUITY AND MUTUTAL FUND ” prescribed by AWADHESH PRATAP SINGH
UNIVERSITY, REWA during the academic year 2022-23 under the guidance of
PROF. PRASHANT MISHRA is my original work.
 The matter presented in this report has not been copied from any
source. I understand that any such copying is liable to be punishable in any
way the university authorities deem to be fit. Also this report has not been
submitted earlier for the award of any Degree or Diploma of Awadhesh Pratap
Singh University, Rewa or any other University.
This work humbly submitted to Awadhesh Pratap Singh University for
the partial fulfillment of Master of Business Administration.

PLACE: SATNA SWAYAMBER VERMA

DATE: / / 2018

VINDHYA INSTITUTE OF MANAGEMENT & RESEARCH,

SATNA (M.P.)
2022-23

ACKNOWLEDGEMENT

Whenever we are standing on most difficult step of the dream of our

life, we often remind about The Great God for His blessings & kind help and he
always helps us in tracking off the problems by some means in our lifetime. I
feel great pleasure to present this project entitled “A COMPARATIVE STUDY
OF “COMPARISON BETWEEN INVESTMENT IN EQUITY AND MUTUTAL
FUND ”
I am very thankful to my mentor Mr. Neeraj Kumar Relationship
Manager of Motilal Oswal Financial Services Limited Indore, forgiving hisd
kind support in my learning skills, I would like to say Thanks to Rashi Sharma,
Customer Support Executive of Motilal Oswal Financial Services Limited for
her support.
I am grateful to those people who help me a lot in preparation of this
project report. It is their support and blessings, which has brought me to write
this project report. I have a deep sense of gratitude in my heart for them.
I am very thankful to my project guide Prof. PRASHANT MISHRA for
his wholehearted support and affectionate encouragement without which my
successful project would not have been possible.
Finally, I am very grateful to Mighty God and inspiring parents whose
loving & caring support contributed a major share in completion of my task.

SWAYAMBER VERMA

VINDHYA INSTITUTE OF MANAGEMENT & RESEARCH,

SATNA (M.P.)
2022-23

T ABLE OF CONTENTS

S.N. Contents Page No.

1 Introduction of Project 6-11

2 Company Profile 12-21

3 Review of Literature 22-26

4 Objectives 27-28

5 Research Methodology 29-32

6 Data Analysis & Interpretation 33-38

7 Findings & Suggestions 39-40

8 Limitations 41-42

9 Conclusion 43-44

10 References 45-46

Annexure
11 47-50
Questionnaire

CHAPTER-I
INTRODUCTION OF PROJECT

INTRODUCTION:

A financial market is a market in which people trade financial securities and

derivatives at low transaction costs. Some of the securities include stocks
and bonds, and precious metals. The term "market" is sometimes used for
what are more strictly exchanges, organizations that facilitate the trade in
financial securities, e.g., a stock exchange or commodity exchange. Much
trading of stocks takes place on an exchange; still, corporate actions (merger,
spin-off) are outside an exchange, while any two companies or people, for
whatever reason, may agree to sell stock from the one to the other without
using an exchange.

Components of financial market:

A. Based on market levels

Primary market: A primary market is a market for new issues or new financial
claims. Therefore, it is also called new issue market. The primary market
deals with those securities which are issued to the public for the first time.
Secondary market: A market for secondary sale of securities. In other words,
securities which have already passed through the new issue market are
traded in this market. Generally, such securities are quoted in the stock
exchange and it provides a continuous and regular market for buying and
selling of securities. Simply put, primary market is the market where the newly
started company issued shares to the public for the first time through IPO
(initial public offering). Secondary market is the market where the second
hand securities are sold (security Commodity Markets)

B. Based on security types

Money market: Money market is a market for dealing with the financial assets
and securities which have a maturity period of up to one year. In other words,
it's a market for purely short-term funds. Capital market: A capital market is a
market for financial assets which have a long or indefinite maturity. Generally,
it deals with long-term securities which have a maturity period of above one
year.
The capital market may be further divided into
(a) industrial securities market
(b) Govt. securities market and
(c) long-term loans market.
1. Equity markets: A market where ownership of securities are issued and
subscribed is known as equity market. An example of a secondary equity
market for shares is the New York (NYSE) stock exchange.
2. Debt market: The market where funds are borrowed and lent is known as
debt market. Arrangements are made in such a way that the borrowers agree
to pay the lender the original amount of the loan plus some specified amount
of interest. Derivative markets: A market where financial instruments are
derived and traded based on an underlying asset such as commodities or
stocks. Financial service market: A market that comprises participants such
as commercial banks that provide various financial services like ATM. Credit
cards. Credit rating, stock broking etc. is known as financial service market.
Individuals and firms use financial services markets, to purchase services that
enhance the workings of debt and equity markets.

Depository markets: A depository market consists of depository institutions

(such as banks) that accept deposits from individuals and firms and uses
these funds to participate in the debt market, by giving loans or purchasing
other debt instruments such as treasury bills. Non-depository market: Non-
depository market carry out various functions in financial markets ranging
from financial intermediary to selling, insurance etc. The various
constituencies in non-depositary markets are mutual funds, insurance
companies, pension funds, brokerage firms etc

Financial Functions :-
 Providing the borrower with funds so as to enable them to carry out their
investment plans.
 Providing the lenders with earning assets so as to enable them to earn
wealth by deploying the assets in production debentures.
 Providing liquidity in the market so as to facilitate trading of funds.
 Providing liquidity to commercial bank
 Facilitating credit creation
 Promoting savings
 Promoting investment
 Facilitating balanced economic growth
 Improving trading floors

Equity:

 People who can balance risk and return while dealing with direct equity
are the winners.
 The risk associated with direct equity comes from complexity of
information.
 It’s not so easy to decode information’s related to equity.
 Information’s related to equity is contained in companies financial reports
like balance sheet etc.
 While buying stocks, one of the most essential parameters to evaluate
about company is ‘return on capital employed (ROCE)’.
 This parameter is so important that a true investor cannot buy stocks
without noting it.
 In India alone, there are millions of people who invest in stocks.
 This lack of know-how generates the ‘risk of losses associated with direct
equity investment.
 Millions of people buy stocks, only few has the critical know of reading
and analyzing balance sheet. These minority people are the ones who are
making huge money in stocks market.
 For balance, stocks market is more like a casino because they are
investing blindly.
 Direct equity investment can be very profitable if one has those critical
know hows.
 Direct equity investment cannot be consistently profitable if one does not
know to decode financial statements of companies.
 But there is a great alternative to direct equity.
 Mutual funds are such products which are designed for common men.
 People who do not have time to gather financial know-how can select a
good mutual fund and enjoy the returns.
 In direct equity, timing the market is important. But timing market is not
easy.
 If one can invest in equity through SIP (indirect equity), they need not care
about market-timing. Rightly timing the market is one essential trait that
one must have while dealing with direct equity. Historically investors have
found timing the market very rewarding
 Investors know that how rewarding it can be to time the market to
perfection.

Mutual Fund:
A mutual fund is an open-end professionally managed investment fund that
pools money from many investors to purchase securities. These investors
may be retail or institutional in nature. The term is typically used in the United
States, while similar structures across the globe include the SICAV in Europe
(‘Investment Company with variable capital') and open-ended investment
company (OEIC) in the UK. Mutual funds have advantages and disadvantages
compared to direct investing in individual securities. Advantages of mutual
funds include economies of scale, diversification, liquidity, and professional
management. However, these come with mutual fund fees and expenses. Not
all investment funds are mutual funds; alternative structures include unit
investment trusts, closed-end funds, and exchange-traded funds (ETFs).
These alternative structures share similarities such as liquidity due to trading
on exchanges and, in the United States, similar consumer protections under
the Investment Company Act of 1940. Mutual funds are also classified by
their principal investments as money market funds, bond or fixed income
funds, stock or equity funds, hybrid funds or other. Funds may also be
categorized as index funds, which are passively managed funds that match
the performance of an index, or actively managed funds. Hedge funds are not
mutual funds as hedge funds cannot be sold to the general public and lack
various standard investor protections.

CHAPTER-II
COMPANY PROFILE
HISTORY:-

 The equity brokerage industry in India is one of the oldest in the Asian
region. India had an active stock market for about 150 years that played a
significant role in developing risk markets and also promoting enterprise
and supporting the growth of industry.
 The roots of a stock market in India began in the 1860s during the
American civil war that led to a sudden surge in the demand for cotton
from India resulting in setting up of a number of joint stock companies
that issued securities to raise finance. This trend was akin to the rapid
growth of securities markets in Europe and the North America in the
background of expansion of railroads, exploration of natural resources
and land development.
 Historical records show that as early as 1864, there were about 1,000
brokers with the stock markets functioning from three places in Mumbai,
between 9 am to 7 pm at the junction of Meadows Street and Rampart
 Row, from day break till 9 am and from 7 pm to early hours of next
morning at Bazargate.

 Share prices rose sharply even at that time. A share of Colaba Land
Company during the boom period of the 1860s rose from Rs 10,000 at par
to Rs 120,000 and that of Backbay Shares went up from Rs 2,000 to Rs
54,000. Bombay, at that time, was a major financial centre having housed
31 banks, 20 insurance companies and 62 joint stock companies.

 Reports on stock markets around that time indicate that an ordinary

broker in 1864 earned about Rs 200 per day, a huge sum in those days.
The boom period came to an abrupt end in 1865. In July 1865, what was
then used to be called the share mania, ended with burst of the stock
market bubble. “Never had I witnessed in any place a run so widely
distributed nor such distress followed so quickly on the heels of such
prosperity” thus wrote Richard Temple, who served as the Governor of
Bombay at that time. An interesting aspect is that despite the collapse of
the stock market, most of the brokers met their payment commitments.

 In the aftermath of the crash, banks, on whose building steps share

brokers used to gather to seek stock tips and share news, disallowed
them to gather there, thus forcing them to find a place of their own, which
later turned into the Dalal Street. A group of about 300 brokers formed the
stock exchange in July 1875, which led to the formation of a trust in 1887
known as the “Native Share and Stock Brokers Association”.

 A unique feature of the stock market development in India was that, it

was entirely driven by local enterprise, unlike the banks which during the
pre-independence period were owned and run by the British. Following the
establishment of the first stock exchange in Mumbai, other stock
exchanges came into being in major cities of India, namely Ahmedabad
(1894), Calcutta (1908), Madras (1937), Uttar Pradesh and Nagpur (1940),
and Hyderabad (1944). The stock markets gained from surge and boom in
several industries such as jute (1870s), tea (1880s and 1890s), coal (1904
and 1908) etc., at different points of time.
RAPID GROWTH

The last decade has been exceptionally good for the stock markets in India.
With the background of wide ranging reforms in regulation and market
practice and the growing participation of foreign institutional investment,
stock markets in India have showed phenomenal growth in the early 1990s.
The stock market capitalization in mid-2007 is nearly the same size as that of
the gross domestic product as compared to about 25% of the latter in the
early 2000’s.

Stock markets became intensely technology and process driven, giving little
scope for manual intervention that has been the source of market abuse in
the past. Electronic trading, digital certification, straight through processing,
electronic contract notes, online broking have emerged as major trends in
technology. Risk management became robust reducing the recurrence of
payment defaults. Product expansion took place in a speedy manner. Indian
equity markets now offer, in addition to trading in equities, opportunities in
trading of derivatives in futures and options in index and stocks. ETFs are
showing gradual growth. Within five years of introduction of derivatives,
Indian stock markets now are ranked first in stock futures and fourth in index
futures.

INDIA STOCK MARKET

Indian stock markets are transaction intensive and thus rank among the top
five markets in this regard .Stock exchange reforms brought in professional
management separating conflicts of interest between brokers as owners of
the exchanges and traders/dealers. Foreign institutions took stake in India’s
two leading domestic stock exchanges. While NYSE Group led consortium
took stake in the National Stock Exchange, Deutsche Borse and Singapore
Stock Exchange bought equity in the Bombay Stock Exchange Ltd.

NATIONAL STOCK EXCHANGE (NSE)

 The National Stock Exchange (NSE) is India’s leading stock exchange
covering various cities and towns across the country. NSE was set up by
leading institutions to provide a modern, fully automated screen-based trading
system with national reach. The Exchange has brought about unparalleled
transparency, speed & efficiency, safety and market integrity. It has set up
facilities that serve as a model for the securities industry in terms of systems,
practices and procedures. 
There are two kinds of players in NSE:
 Trading members
Recognized members of NSE are called trading members who trade on
behalf of themselves and their clients
Participants Participants include trading members and large players
like banks who take direct settlement responsibility.

Unless stock markets provide professionalized service, small investors and

foreign investors will not be interested in capital market operations and
capital market being one of the major sources of long-term finance for
industrial projects, India cannot afford to damage the capital market path. In
this regard NSE gains vital importance in the Indian capital market system.

BOMBAY STOCK EXCHANGE (BSE)

Bombay Stock Exchange is the oldest stock exchange in Asia with a rich
heritage of over 133 years of existence. What is now popularly known as BSE
was established as “The Native Share & Stock Brokers’ Association” in 1875.
BSE is the first stock exchange in the country which obtained permanent
recognition (in 1956) from the Government of India under the Securities
Contracts Regulation Act (SCRA) 1956. BSE’s pivotal and pre-eminent role in
the development of the Indian capital market is widely recognized.

It migrated from the open out-cry system to an online screen-based order

driven trading system in 1995. Earlier an Association of Persons (AOP), BSE is
now a corporatized and demutualized entity incorporated under the provisions
of the Companies Act, 1956, pursuant to the BSE (Corporatization and
Demutualization) Scheme, 2005 notified by the Securities and Exchange
Board of India (SEBI). With Demutualization, BSE has two of world’s prominent
exchanges, Deutschmark Bores and Singapore Exchange, as its strategic
partners.

Today, BSE is the world’s number 1 exchange in terms of the number of

listed companies and the world’s 5th in handling of transactions through its
electronic trading system. The companies listed on BSE command a total
market capitalization of USD 1.63 Trillion as on December, 2010,makingit the
4th largest stock exchange in Asia and the 8th largest in the world. BSE reaches
to over 400 cities and town nation-wide and has around 5,034 listed
companies; with over 7745 scrip’s being traded as on 31stDec, 2010.

The BSE Index, SENSEX, is India’s first and most popular stock market
benchmark index. Sensex is tracked worldwide. It constitutes 30 stocks
representing 12 major sectors. The SENSEX is constructed on a ‘free-float’
methodology, and is sensitive to market movements and market realities.
Apart from the SENSEX, BSE offers 23 indices, including 13 sectorial indices.
It has entered into an index cooperation agreement with Deutschmark Borse
and Singapore Stock Exchange. These agreements have made SENSEX and
other BSE indices available to investors across the globe. Moreover, Barclays
Global Investors (BGI), at Hong Kong, the global leader in ETFs through its
iShares brand, has created the exchange traded fund (ETF) called iShares.

BSE provides an efficient and transparent market for trading in equity, debt
instruments and derivatives. It has always been at par with the international
standards. The systems and processes are designed to safeguard market
integrity and enhance transparency in operations. BSE is the first exchange in
India and the second in the world to obtain an ISO 9001:2000 certifications. It
is also the first exchange in the country and second in the world to receive
Information Security Management System Standard BS 7799-2-2002
certification for its BSE On-line Trading System (BOLT).
BSE continues to innovate. In 2006, it became the first national level stock
exchange to launch its website in Gujarati and Hindi and now Marathi to reach
out to a larger number of investors. It has successfully launched a reporting
platform for corporate bonds in India christened the ICDM or Indian Corporate
Debt Market and a unique ticker-cum-screen aptly named ‘BSE Broadcast’
which enables information dissemination to the common man on the street.
LIST OF STOCK EX-CHANGES IN INDIA

There are 22 stock exchanges in India. These are shown below:

1. Bombay Stock Exchange
2. National Stock Exchange
3. Bangalore Stock Exchange
4. Bhubaneswar Stock Exchange
5. Calcutta Stock Exchange
6. Cochin Stock Exchange
7. Coimbatore Stock Exchange
8. Delhi Stock Exchange
9. Guwahati Stock Exchange
10. Hyderabad Stock Exchange
11. Jaipur Stock Exchange
12. Ludhiana Stock Exchange
13. Madhya Pradesh Stock Exchange
14. Madras Stock Exchange
15. Magadha Stock Exchange
16. Mangalore Stock Exchange
17. Meerut Stock Exchange
18. OTC Stock Exchange
19. Pune Stock Exchange
20.Saurasthra Stock Exchange
21. Uttar Pradesh Stock Exchange
22. Vadodara Stock Exchange

WORLDWIDE STOCK MARKETS

  Country Market cap (US$ billion) % of world
1 USA 15,517 39.5
 2 Japan 4,079 10.4
3 United Kingdom 3,067 7.8
4 France 1,828 4.7
5 Germany 1,256 3.2
6 Canada 1,239 3.2
7 Hong Kong 1,001 2.6
8 Switzerland 872 2.2
9 Italy 788 2.0
10 Spain 688 1.8
11 Australia 687 1.8
12 Russia 592 1.5
13 South Korea 557 1.4
14 India 506 1.3
15 Taiwan 475 1.2

SECURITY &
EXCHANGE BOARD
OF INDIA (SEBI)
SEBI was established in
1988 and became a fully
autonomous body in the
year 1992 with defined
responsibilities to cover
both development and
regulation of Stock
Market.

FUNCTIONS OF SEBI :

1. Regulation of Stock exchanges and Subsidiaries:

One of the key functions of the Board is to supervise and monitor the
activities of the exchanges, clearing houses and the settlement system,
strengthen market infrastructure and ensure that appropriate risk
management systems are in place. Main functions include Inspection
of Stock Exchanges, Inspection of Subsidiaries of Stock Exchanges,
 Restructuring of Management of Subsidiaries, Takes Strict actions
against Illegal Trading in Securities.
2. Registration and Regulation of the working of Intermediaries:
In order to interpose between issuers and investors, regulators
recognize various classes of intermediaries in the capital market. SEBI,
over the period, recognized many types of capital market
intermediaries in India and operations during the year is reviewed in the
following sections.
i. Primary Market: Intermediaries such as merchant bankers,
underwriters, debenture trustees, bankers to an issue,
registrars to an issue and share transfer agents and portfolio
manager are the intermediaries that function in the primary
markets.
ii. Secondary Market: Brokers & sub-brokers will function in the
secondary market. Sub-brokers are intermediaries between
the broker and the investors.
iii. Registration of FIIs
iv. Registration of Custodian of Securities
3. Registration and Regulation of Collective Investment schemes
including mutual Funds
4. Promotion and Regulation of Self-Regulatory organizations
5. Fraudulent and Unfair Trade practices
6. Investor Education and the Training of Intermediaries.

MAJOR INITIATIVES TAKEN BY SEBI

 PAN was made the sole identification number for all transactions in
securities market irrespective of the amount.
 Format of the New Scheme Report by Mutual funds revised.
 Long term options on Sensex and Nifty with tenures up to 3 years
Introduced and the options cycle, risk containment measures specified.
 BSE and NSE permitted to put in place corporate bond trading
platforms to enable efficient price discovery and clearing and
settlement in a gradual manner.
COMPANY PROFILE

Motilal Oswal Financial Services Ltd

Motilal Oswal securities limited was founded in 1987 as a small sub-broking
unit, with just two people running the show Mr. MotilalOswal and Mr.
RaamdevAgarwal laid the foundation for MOFSL. It is headquartered in
Mumbai having one of India’s largest networks spreading over 563 cities and
towns comprising 1538 business locations operated by business partners. As
of 30 Sept 2011 it has 732173 registered customers.“MOITAL OSWAL
FINANCIAL SERVICES GROUP” consists of 5 highly renowned entities which
are as follow:
 MOIAPL (Motilal Oswal Investment Advisors Private Ltd.)
 MOCBPL (Motilal Oswal Commodities Broker Private Ltd.)
 MOPEAPL (Motilal Oswal Private Equity Advisors Private Ltd.)
 MOAMC (Motilal Oswal Asset Management Company)
 MOSL (Motilal Oswal securities Ltd)
Focus on customer-first-attitude, ethical and transparent business practices,
respect for professionalism, research-based value investing and
implementation of cutting-edge technology has enabled us to blossom into an
over 2000 member team.
NATURE OF THE BUSINESS
MOFSL is a broking unit and a well-diversified financial services firm
offering a wide range of financial services and products. Being a subsidiary
MOSL carries the same business where it particularly deals Investment
Banking, Private Equity, Wealth Management, Institutional Equities, Asset
Management, Broking and Distribution, Principal Strategies . Motilal Oswal
Securities Advisory Group is equipped to augment and alter the investments
in an effort to create healthy portfolio. Motilal Oswal Securities Ltd follows a
network of franchisee/sub-brokers shop and Remises model. Their systems
and policies are deeply evolved and centred on the business requirements of
the sub broker.
The business is carried on in two different areas .The first
one is client acquisition and the second one is franchisee
acquisition .There are few ways in which client acquisition takes
place .They include tele-calling, cold calling, referrals from
existing clients and directly

targeting competitor data base, walk-ins. Franchisee

acquisition means insisting the interested sub brokers to open up a franchise
or sub brokerage firms of Motilal Oswal. This might be either on the premises
of Motilal Oswal or a separate office where the support service is provided by
Motilal Oswal. There are people who work independently in the premises of
Motilal Oswal who are known as Business Associate Group (BAG).
CORE PURPOSE AND VALUES
VISION
“To provide opportunities for children and their families to move from poverty
and dependence to self-reliance. At MotilalOswal Financial Services Limited
our motto is `Knowledge First` and we believe that education can bring
prosperity and equality in the society.”
MISSION
“To be a well-respected and preferred global financial services organization
enabling wealth creation for all our customers”
Values
Our core purpose is complemented by our organizational values. Living
these values, we believe, helps us achieve our core purpose.
Integrity: A company honoring commitment with highest ethical and business
practices.
Passion & Attitude: High energy and self-motivatedwith a ‘Do it’ attitude and
entrepreneurial spirit. .
PRODUCTS AND SERVICES
MOSL understands customer profile and uses a combination of the following
products and services to look after their needs

Equities – BSE/NSE
 Derivatives- NSE-Cash and F&O and BSE – Cash and F&O
 Commodities- NCDEX/MCX
 Portfolio Management Services
 Private Equity
 Mutual Funds
 Online Trading
 IPO’s
 Depository Services
 Loan against shares
 Asset management
 Investment banking
 Wealth Management
EQUITY:
Motilal Oswal securities Ltd is a member of NSE and BSE, has a network
of over 480 branches inIndia and abroad, rendering quality equity trading
services. Motilal Oswal Securities Ltd not only has a strong offline presence
but also provides but also provide automated online trading services. Motilal
Oswal Securities Ltd is retail spread caters to the need of individual investors.
Trading in equities is made simple, safe and interesting with smart advice
from the research desk through daily SMS alerts, market pointers, periodical
research, stock recommendations and customer meets organized frequently.
DERIVATIVE:
A Derivative is a financial contract, between two or more parties, which
is derived from the future value of an underlying asset. At any point of time
there will always be available near three month contract periods. Currently,
settlement of all derivatives trades is in cash. There is daily as well as final
settlement. As long as the position is open, the same will be mark to market
at the daily settlement price, the difference will be credited or debited
accordingly and the positions shall be brought forward to the next day at the
daily settlement price.
INTERNET TRADING:
If you have access to the Internet then you can register with your to
view your demat account over the internet. This is very beneficial as you can
avail of a host of services at no extra cost. You will be able to view your
holdings, reports, and ledger and will have free access to our
research reports at any time.

DEPOSITORY SERVICES:
A depository can be compared to a bank. It holds
securities such as shares, debentures, bonds,
government securities, units etc. Of investors in electronic form. Motilal
Oswal Securities Ltd is a depository participant of NSDL. Investors can open
demat accounts with NSDL through MOSL. One can approach the nearest
branch of Motilal Oswal Securities Ltd for opening an account. Agreement
charges along with annual maintenance charge (AMC) are collected upfront
while opening an account. It takes two to three days to open a demat account.
PORTFOLIO MANAGEMENT SERVICES:
Motilal Oswal Securities Ltd a SEBI registered portfolio manager offers
discretionary portfolio management services. Motilal Oswal Securities Ltd
has a team of experts who carefully take investment decisions based on the
clients’ objectives. The portfolio management team has a successful track
record of more than 10 years in the capital markets.
COMMODITIES:
MOCB provides commodity broking facilities through its membership
of NCDEX and MCX. They trade for their clients in a wide variety of 63
commodities, including agricultural products, bullion, industrial products, oil
and oil seeds and energy products. MOSL brokerage clients have access to
exclusive customized trading advice and reports on highly traded
commodities.
RETAIL WEALTH MANAGEMENT:
Retail wealth management services are offered through MOFSL, MOSL
and MOCB. They seek to offer customized investment management services
including planning, advisory, executive and monitoring or a range of
investment products to our retail customers. Through various types of
brokerage accounts, our customers can purchase and sell securities,
including equities, derivatives as well as commodities traded on NSE, BSE,
OTCEI, NCDEX and MCX.

MUTUAL FUNDS:
Mutual funds offer a platform to participate in the equity & debt market
indirectly through professional management. Motilal services regarding client
profiling, asset allocation plan, scheme selection, re-balancing. It offers need
based advisory fully backed by solid research, it understands the needs and
builds a prudent portfolio, it reviews the portfolios on a monthly basis.

AREAS OF OPERATION:
Motilal Oswal Financial Services is a national player as of March 31st,
2010, network spread over 591 cities and research coverage of more than
1755 companies and towns comprising 1,397 business locations operated by
our business partners. As at march 31st, 2010, they have 6,21,215 registered
customers, with a network over 1500 outlets and more than 5 lakh investors
in over 450 cities and towns needs of all kinds of customers. They have
established India’s largest dealing room and advisory desk spread over 2600
Sq.Ft area housing over 250+ advisors at Malad, Mumbai. The reason for the
growth and size has been a large sub-broker network. Over 1300 of their
outlets are run by their sub-brokers.
As a part of MOFSL, Motilal Oswal Securities Ltd (MOSL) located in
Bangalore. Almost 10% of the revenue is invested in equity research and they
hire and train the best resources to become advisors. MOSCL has the highest
credit rating for 4.0billion short term debt program. Credit rating agency
“CRISIL” has assigned the highest rating of P1+ to the company’s short term
debt program.
 Geographic reach through
 Branch network
 Franchisee network
 Alliances with banks dedicated HNI channel brand
 Purple

Registered office
Palm spring center, 2nd floor, palm court complex,
New link road, Malad (W), Mumbai-400 064
Call: 022-30896680
Email: [email protected]
Indore regional Office
Motilal Oswal Financial Services Limited
202- 2nd Floor Sagun Tower, Vijay Nagar Indore Madhya Pradesh 45201

OWNERSHIP PATTERN:
Particulars No. Of Shares % holdings
Promoter and Promoter Group
 Indian 100,575,851 69.31%
 Foreign NIL NIL
Public Shareholdings
 Institution
 Mutual Funds/UTI 15,663,077 10.79%
 FII 1,428,606 0.98%
  Non- Institutions
 Body Corporate 574,607 0.40%
 Individuals 9,322,558 6.43%
 Others (NRI, Foreign
Co., Directors, trusts, 17,554,770 12.11%
Clearing Members)
A. Custodians NIL NIL
TOTAL 145,119,469 100%

COMPETITORS INFORMATION:
Motilal Oswal has many competitors like Stock Holding Corporation of
Karvy Consultancy, BGSE, Infrastructure Leasing & Financial Services Limited
(IL&FS), Share Khan, ICICI Direct, India Bulls, Kotak Securities, Standard
Chartered, Religare, India bulls etc.

INFRASTRUCTURE FACILITIES
MOTILAL OSWAL FINANCIAL SERVICES LTD is located at Bellary road,
palace orchards, Sadashivanagar, Bangalore. Office Total Area rented by the
company is 2,200 square feet. With very good technology support is available.
Cleanliness is given utmost importance in the company. There are air-
conditioners, proper lighting and ventilation and telecommunication facilities.
The company also provides travel allowances and medical allowance facilities
to the employees and parking facility is also available. There is a Relationship
Manager Cabin, a Conference hall, a Training room, a Dealing room, back
office department, a reception hall.
The software’s used are trading :
 1. Online trading – Fast Trade software also known as My Broker
2. Offline trading- Lite Desktop provided by 3i InfoTech.
ACHIEVEMENTS AND AWARDS:
 ‘Best Equity Broking House’ award for FY011 at the Dun and Bradstreet
Equity Broking Awards2011
 ‘Best Capital Markets and Related NBFC’ award at the CNBC TV18 India
Best Banks and Financial Institution Awards 2011.
 ‘Excellence in HR through Technology’ and ‘Excellence in Healthcare’
awards at Asia’s Best Employer Brand Awards 2011 in Singapore.
 ‘Most Innovative Fund of the Year’ award at the CNBC
TV18-CRISIL Mutual Fund Awards 2011
 Adjudged the ‘Best Performing Equity Broker’ at CNBC
TV18 Financial Advisors Awards –2010.
 Investment Banking bagged ‘Asia Pacific Cross-
Border Deal of the Year’ and ‘India M&A
Investment Banker’ award.
 Rated No. 1 –‘Best Recommendations Mid & Small Caps’ and won
awards in 3 out of 4 categories at the Star Mine India Broker Rankings
2009 from Thomson Reuters.
 Alliance with Axis Bank for offering Online Trading services.
FUTURE GROWTH AND PROSPECTS:
 Grow distribution networks India
 Leverage research and advisory
 Investor awareness and education
 Increase distribution of mutual fund and insurance products
 Focus on wealth solutions and new product offering
 Grow investment banking business
 Judicious use of capital ensures high Return on Equity and low
leverage
 Flexible cost structure to maintain profitability across market cycles
 Build stronger Institutional relationship through wider and quality
research
 Increase research support
  Grow institutional derivative business
 Building Principal Strategies Group to maximize returns using risk free
arbitrage strategies
 Grow margin funding book size.

STRUCTURE OF MOTILAL OSWAL:

SWOT ANALYSIS
The strength, weakness, opportunities and threats of
Motilal Oswal can be stated as follows:
STRENGTHS OF MOSL:
 Large and diverse distribution network
 Strong research and sales teams

 Original Research

 Integrated Technology Platform

 User friendly software to its customers to facilitate online trading on

their own.
 Brand recognition
 Strong private equity operations
 Strong investment culture
 Strong risk management practices
  Leadership in franchisee business
 Financial products and services such as Wealth Management, Broking
& Distribution, Commodity Broking, Portfolio Management Services,
Institutional Equities, Private Equity, Investment Banking Service

WEAKNESS OF MOSL:
 Charges are high compared to other companies in the industry.
 No service in rural segment.
 Less penetration in developing cities.
 Lack of advertising causes low awareness amongst investors.

OPPORTUNITIES OF MOSL:
 Growing Financial Services industry's share of wallet of disposable
income
 Huge market opportunity for wealth management service providers as
Indian wealth management business is transforming from mere wealth
safeguarding to growing wealth.
 Favourable government policies which motivate public to
invest money in share market.

 Increasing awareness about the stock exchange among

the public.
 Leveraging technology to enable best practices
and processes
 Growing rural market.
 Earning Urban Youth looking for investments.

THREATS OF MOSL:

 Market fluctuations.

 Government polices
 Increased intensity of competition from local and global players
 Unfavourable economic conditions
  High inflation and interest rates
Entry of foreign finance firms in Indian Market.

LITERATURE REVIEW
Project report by Mr. Vikash kumar: A study of preferences of investors for
investment in mutual funds for the SBI mutual funds (April 2008), the topic
was a study of preferences of investors for investment in mutual funds for the
SBI mutual funds. Mr. Vikash kumar concluded that most of the investors
don’t invest in SBI mutual fund due to non-awareness. And he adds that most
of the investors of INDORE had invested in reliance or UTI mutual funds and
ICICI mutual funds also has good brand position among them. And SBI mf
places after ICICI mutual fund according to respondents. The most portfolio
are equity second most is balance and least prefer portfolio was debts
portfolio. Most of the investors doesn’t want to invest in sectored fund. And
he observed that many people have the fear of mf. They need information
brand place and important role and SBI mf UTI mf ICICI mf etc. are well non
brand so they are doing well.
Prof. Kalpesh P Prajapati and Prof. Mahesh K Patel: Study on Performance
Evaluation of Mutual Fund Schemes Of Indian Companies (Jul 2012), have
done a Comparative Study On Performance Evaluation of Mutual Fund
Schemes Of Indian Companies. In this paper the performance evaluation of
Indian mutual funds is carried out through relative performance index, risk-
return analysis, Treynor's ratio, Sharp's ratio, Sharp's measure, Jensen's
measure, and Fama's measure. The data used is daily closing NAVs. The
source of data is website of Association of Mutual Funds in India (AMFI). The
study period is 1st January 2007 to 31st December, 2011. The results of
performance measures suggest that most of the mutual fund have given
positive return during 2007 to 2011.

Research Methodology:
STATEMENT OF THE PROBLEM
 Research study on mutual funds and equity has been extensive since its
introduction. Mutual funds provide opportunity to generate income and it
is booming sector now a days. On the other hand, Equity provides
ownership capital. Thus, this study makes an attempt to comparative
analysis of mutual funds and direct equity and also finds out the
preference of the target populations for mutual funds and direct equity.

OBJECTIVES
 To study the preference of the target investors for equity mutual funds
and direct equity
 To identify reasons for preferring mutual funds and direct equity
investment.
 To identify factors considered while investing in mutual funds
 To identify the investment objective while investing in equity stock.

RESEARCH DESIGN
 This study is in descriptive nature since it is based on primary data’s
facts and findings of investigation in a structured manner.
SAMPLE DESIGN
Sampling Method: Convenience sampling
Sampling Frame: Equity and mutual fund investors
Sample Size: 100 respondents
SOURCES OF DATA The study is based on primary and secondary data:
 Primary Data: For primary data, research work has been collected through
Structured, Undisguised Questionnaire is used.
 Secondary Data: For this study data has been collected through books,
magazines, journals and the internet is used.
TOOLS FOR DATA COLLECTION
Structure non-disguise questionnaire Linkert scale
DATA ANLYSIS
Statistical tool: Microsoft Excel
LIMITATIONS OF THE STUDY
The study is limited to 100 investors. The study is limited to the city only.
It is assumed that respondents are honest and true in expressing their view
and fill questionnaire without any bias.
1. Association between percentage of total saving income and Annual
income.
H0=There is no significant relation between total saving income and Satisfaction of annual
income.
H1: There is a significant relation between total saving and Satisfaction of Annual income
Chi-square test = 0.107407
Interpretation: From the above table it can be concluded that the p value is
0.107 which is more than 0.05. So that null hypothesis is accepted. Therefore,
it indicates that there is significant relation between percentage of savings
and annual income.
2 .Association between Experience in market and category of investor.
H0=There is no significant relation between Experience in market and Satisfaction of
Category of investor.
H1: There is a significant relation between Experience in market and Satisfaction of category
of investor.
Chi-square test =0.332825 Interpretation: From the above table it can be concluded that the p
value is 0.332 which is more than 0.05. So that null hypothesis is accepted. Therefore,
it indicates that there is significant relation between category of investors and experience in
the market.

Findings:
 There has been 1000 respondent (investor) are taken as a sample.
 100% respondents are aware about share/debenture and mutual fund
investment. We have 61 male and 39 female respondents in our
research.
 Most of our respondents are getting information from financial institution
or consultant for both equity and mutual funds. And thereafter they
dependent on brokers.
 In this research, it has been seen that both equity and mutual fund users
are changed their portfolio in period of less than 3 years.
 It has been found that AMC (Assets Management Company) is play
significant role in investing in mutual funds.
 Thereafter they consider expense ratio and credit rating factors.
 They give similar preference to risk and liquidity parameters.
 It can be found that quick gain is their primary objective investing in
equity funds. Then they focus on dividend and capital appreciation
objectives.
 From the above table it can be concluded that the p value is 0.107 which
is more than 0.05. So that null hypothesis is accepted.
 Therefore, it indicates that there is significant relation between
percentage of savings and annual income.

Conclusion:
 Saving money is not enough. Each of us also need to invest one's savings
intelligently in order to have enough money available for funding the
higher education of one's children, for buying a house, or for one's own
golden years. The study recommends new investors to go for in both
mutual funds and equities, because of high risk and market instability.
 People need a systematic way of investing should go for mutual fund
investing. Investing with a fixed income strategy, should choose mutual
fund as an investment choice. Short term as well as medium term
investors should choose direct equity investing as an investment choice.
Mutual fund investing is termed as a long term horizon of getting a good
return, as the fund is going in a systematic way.
 If an investor has got time in making a market study and managing
his/her portfolio, should invest in equity shares directly, otherwise go for
mutual fund investing. If an investor like in buying and selling stocks,
managing the stocks in his portfolio should choose direct investing in
equity stocks.
Reference:
 Pritam p. Kothari & Shivganga C. Mindargi (2013) a study of investors
attitude towards mutual fund with special reference to investors in
Solapur city volume 22. Prafulla Kumar Swami & Manorajan Dash
(august,2017) a study of investor's perception towards mutual fund
decision: An Indian perspective vol. 3, issue 1, pp: (541-545).
 Rakesh h m (February, 2014) a study on individual investors behavior in
stock markets of India vol. 3 no. 2.
 Project report by Mr. Vikash Kumar (April 2008) a study of preferences of
investors for investment in mutual funds for the SBI mutual funds volume
7 issue 11.
 Prof. Kalpesh P Prajapati and prof. Mahesh P Patel (Jul 2012) study on
 performance evaluation of mutual fund schemes of Indian companies Vol
4, no.18. Noronha (2007), ‘a study on investor’s awareness and
perception about mutual funds’. Vol 2, no.15.

Bibliography:
https://en.wikipedia.org/wiki/Financial_market
https://getmoneyrich.com/direct-equity-investment
https://www.investopedia.com/terms/m/mutualfund.asp
https://en.wikipedia.org/wiki/Mutual_fund
https://www.investopedia.com/articles/stocks/09/indian-stock
https://www.motilaloswal.com