Summer Training Report

On
“A STUDY OF ONLINE TRADING”
AT

Submitted in partial fulfillment of the requirement for

the award of degree of
Master of Business Administration
Session 2022-2024

Submitted By
Kanika Verma
2205401015
School of Management
Geeta University, Panipat

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2
 DECLARATION

This is to certify that I Kanika Verma student of School of Management studying in MBA
3rd Semester Roll No. 2205401015 has prepared a project report entitled “A Study of
Online Trading ”for the partial fulfillment of degree of Master of Business Administration
from Geeta University, Panipat.

I hereby declare that the project report submitted to the Geeta University, Panipat is a record
of an original work done by me under the guidance.

The matter presented in this project work has not been submitted by me for the award of any
Degree or diploma/ associate ship/fellowship and similar degree or any other institute

Signature of Candidate Roll No: 2205401015

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 ACKNOWLEDGEMENT

Gratitude of highest order is expressed to Dr. Sangeeta (Head & Associate Professor) for
encouragement and support during my project. Her care, endless support and trust motivate
me for opportunity to achieve. This project could not be completed without his insight and
achieve.

I am neither expert nor a trend spotter. I am a management student with foundations of

management principles and theories who is keen in different industries, it's happening mainly
in Sharekhan Ltd.

I am highly obliged to Mr. Sumit Goel, my prime internal guide for his/her invaluable
support; guidance and knowledge that he/she has shared with me thereby aiding me in
making this project a success along with other employees who provided their utmost working
knowledge, which has broaden my area of interest and benefited mostly in completing the
project.

I am highly grateful to my project guide Dr. Pooja Sharma for his/her inspiring guidance
and blessings for fulfilling the project report. I am very grateful to her for research advice,
knowledge and many insightful discussion and suggestions. Lastly I thank faculty and staff
members of School of Management/School of Commerce & Finance, Panipat which gave me
an opportunity regarding training purpose and helped me in building some experience in my
career.

Kanika Verma

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 Table of Content

Chapter Particulars Page No

Chapter 1 INTRODUCTION 1-36
Industry Profile

Company Profile

Chapter 2 LITERATURE REVIEW 1-36

Chapter 3 RESEARCH METHODOLOGY 37-40

2.1) Statement of the Problem

2.2) Objectives of the Study

2.3) Research Design

2.4) Collection of Data

2.5) Sampling Technique

2.6) Analytical tool used in Study

2.7) Limitations of Study

Chapter 4 ANALYSIS & INTERPRETATION 41-63

Chapter 5 FINDINGS, CONCLUSION &
RECOMMENDATIONS 64-67
4.1) Findings
4.2) Conclusion
4.3) Recommendations

BIBLIOGRAPHY/ REFERENCES 68
ANNEXURE 69-70

WEEKLY LOG BOOK

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 Chapter: 1
INTRODUCTION

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1.1 INTRODUCTION TO THE INDIAN STOCK BROKING INDUSTRY AND THE COMPANY
1.1.1 STOCK EXCHANGE

A stock exchange, share market or bourse is a corporation or mutual organization which

provides facilities for stock brokers and traders, to trade company stocks and other securities.
Stock exchanges also provide facilities for the issue and redemption of securities, as well as,
other financial instruments and capital events including the payment of income and dividends.
The securities traded on a stock exchange include: shares issued by companies, unit trusts and
other pooled investment products and bonds. To be able to trade a security on a certain stock
exchange, it has to be listed there.

● NSE (National Stock Exchange) - The National Stock Exchange of India

Limited (NSE) is a Mumbai-based stock exchange. It is the largest stock exchange in
India and the third largest in the world in terms of volume of transactions. NSE is
mutually-owned by a set of leading financial institutions, banks, insurance companies
and other financial intermediaries in India but its ownership and management operate
as separate entities. NSE has a market capitalization of around US$1 trillion and over
1,652 listings as of July 2012.

NSE Mission

NSE’s mission is setting the agenda for change in the securities markets in India. The NSE
was set-up with the main objectives of:

● Establishing a nation-wide trading facility for equities, debt instruments and hybrids,
● Ensuring equal access to investors all over the country through an appropriate
communication network,
● Providing a fair, efficient and transparent securities market to investors using
electronic trading systems,
● Enabling shorter settlement cycles and book entry settlements systems, and
● Meeting the current international standards of securities markets.

The standards set by NSE in terms of market practices and technology has become industry
benchmarks and being emulated by other market participants. NSE is more than a mere

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market facilitator. It's that force which is guiding the industry towards new horizons and
greater opportunities.

● BSE (Bombay Stock Exchange) -The Bombay Stock Exchange (or BSE) is the
oldest stock exchange in Asia. It is located at Dalal Street, Mumbai, India. The
Bombay Stock Exchange was established in 1875. There are around 5000+ Indian
companies listed with the stock exchange, and have a significant trading volume. The
companies listed on BSE Ltd command a total market capitalization of USD Trillion
1.32 as of January 2013. The BSE SENSEX (Sensitive index), also called the "BSE
30", is a widely used market index in India and Asia. It is also one of the world’s
leading exchanges (3rd largest in December 2012) for Index options trading.

Primary Market - The primary is that part of the capital markets that deals with the issuance
of new securities. Companies, governments or public sector institutions can obtain funding
through the sale of a new stock or bond issue. This is typically done through a syndicate of
securities dealers. The process of selling new issues to investors is called underwriting. In the
case of a new stock issue, this sale is an initial public offering (IPO). Dealers earn a
commission that is built into the price of the security offering, though it can be found in the
prospectus. This is the market for new long term capital. The primary market is the market
where the securities are sold for the first time. Therefore it is also called New Issue Market
(NIM). Primary issues are used by companies for the purpose of setting up new business or
for expanding or modernizing the existing business.

Secondary Market- The secondary market is the financial market for trading of securities
that have already been issued in an initial private or public offering. Alternatively, secondary
market can refer to the market for any kind of used goods. The market that exists in a new
security just after the new issue is often referred to as the aftermarket. Once a newly issued
stock is listed on a stock exchange, investors and speculators can easily trade on the
exchange, as market makers provide bids and offers in the new stock.

DEMAT A/C-Demat a/c is just like a saving a/c. In saving a/c we save our money and in
demat we deal in share market. Demat is dematerialization and trading in the demat mode. It

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is safer and faster alternative to the physical existence of securities. Demat as a parallel
solution offers from delays, thefts, forgeries, settlement risk and paper work. This system
works through depository participants (DP) who offer demat services and the securities are
held in the electronic form for the investor directly by the depository

1.1.2 What is a Mutual Fund?

A Mutual Fund is a trust that pools the savings of a number of investors who share a common
financial goal. The money thus collected is invested by the fund manager indifferent types of
securities depending upon the objective of the scheme. These could range from shares . The
incomeearned through these investments and the capital appreciations realized by the scheme
are shared by its unit holders in proportion to the number of units owned by them. Thus a
Mutual Fund is the most suitable investment for the common man as it offers an opportunity
to invest in a diversified, professionally managed portfolio at relatively low cost. The small
savings of all the investors are put together to increase the buying power and hire
a professional manager to invest and monitor the money .Anybody with an investible surplus
of as little as a few thousand rupees can invest in Mutual Funds. Each Mutual Fund scheme
has a defined investment objective and strategy.

1.1.3 HISTORY OF MUTUAL FUND

The mutual fund industry in India started in 1963 with the formation of Unit Trust of India,
at the initiative of the Government of India and Reserve Bank of India. The history of mutual
funds in India can be broadly divided into four distinct phases.

First Phase - 1964-1987

Unit Trust of India (UTI) was established in 1963 by an Act of Parliament. It was set up by
the Reserve Bank of India and functioned under the Regulatory and administrative control of
the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial
Development Bank of India (IDBI) took over the regulatory and administrative control in

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place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988
UTI had Rs. 6,700 crores of assets under management.

Second Phase - 1987-1993 (Entry of Public Sector Funds)

1987 marked the entry of non-UTI, public sector mutual funds set up by public sector banks
and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India
(GIC). SBI Mutual Fund was the first non-UTI Mutual Fund established in June 1987
followed by Canara bank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug
89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual
Fund (Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its mutual
fund in December 1990.
At the end of 1993, the mutual fund industry had assets under management of Rs. 47,004
crores.

Third Phase - 1993-2003 (Entry of Private Sector Funds)

With the entry of private sector funds in 1993, a new era started in the Indian mutual fund
industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year
in which the first Mutual Fund Regulations came into being, under which all mutual funds,
except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged
with Franklin Templeton) was the first private sector mutual fund registered in July 1993.
The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and
revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI
(Mutual Fund) Regulations 1996.
The number of mutual fund houses went on increasing, with many foreign mutual funds
setting up funds in India and also the industry has witnessed several mergers and
acquisitions. As at the end of January 2003, there were 33 mutual funds with total assets of
Rs. 1,21,805crores. The Unit Trust of India with Rs. 44,541 crores of assets under
management was way ahead of other mutual funds.

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Fourth Phase - since February 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was
bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of
India with assets under management of Rs. 29,835 crores as at the end of January 2003,
representing broadly, the assets of US 64 scheme, assured return and certain other schemes.
The Specified Undertaking of Unit Trust of India, functioning under an administrator and
under the rules framed by Government of India and does not come under the purview of the
Mutual Fund Regulations.
The second is the UTI Mutual Fund, sponsored by SBI, PNB, BOB and LIC. It is registered
with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the
erstwhile UTI which had in March 2000 more than Rs. 76,000 crores of assets under
management and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual
Fund Regulations, and with recent mergers taking place among different private sector funds,
the mutual fund industry has entered its current phase of consolidation and growth.

FIGURE-1

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1.1.4 Types of Mutual Fund Scheme

Mutual fund schemes may be classified on the basis of its structure and its investment
objective.

BY STRUCTURE

1. Open-end Funds

An open-end fund is one that is available for subscription all through the year. These do not
have a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value
("NAV") related prices. The key feature of open-end schemes is liquidity.

2. Closed-end Funds

A closed-end fund has a stipulated maturity period which generally ranging from 3 to15
years. The fund is open for subscription only during a specified period. Investors can invest
in the scheme at the time of the initial public issue and thereafter they can buy or sell
the units of the scheme on the stock exchanges where they are listed. In order to provide an
exit route to the investors, some close-ended funds give an option of selling back the units to
the Mutual Fund through periodic repurchase at NAV related prices. SEBI Regulations
stipulate that at least one of the two exit route sis provided to the investor.

3. Interval Funds

Interval funds combine the features of open-ended and close-ended schemes. They are open
for sale or redemption during predetermined intervals at NAV related prices.

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1.1.5 BY INVESTMENT OBJECTIVE

1. Growth Funds
The aim of growth funds is to provide capital appreciation over the medium to long term.
Such schemes normally invest a majority of their corpus in equities. It has been proved that
returns from stocks, have outperformed most other kind of investment should over the long
term. Growth schemes are ideal for investors having a long-term outlook seeking growth
over a period of time.

2. Income Funds
The aim of income funds is to provide regular and steady income to investors.
Suchschemes generally invest in fixed income securities such as bonds, corporatedebentures
and Government securities. Income Funds are ideal for capital stability and regular income.

3. Balanced Funds

The aim of balanced funds is to provide both growth and regular income. Such schemes
periodically distribute a part of their earning and invest both in equities and fixed income
securities in the proportion indicated in their offer documents. In a rising stock market, the
NAV of these schemes may not normally keep pace, or fall equally when the market falls.
These are ideal for investors looking for a combination of income and moderate growth.

4. Money Market Funds

The aim of money market funds is to provide easy liquidity, preservation of capital
and moderate income. These schemes generally invest in safer short-term instruments such as
treasury bills, certificates of deposit, commercial paper and inter-bank call money. Returns
on these schemes may fluctuate depending upon the interest rates prevailing in the market.
These are ideal for Corporate and individual investors as a means to park their surplus funds
for short periods.

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Three Common Investment Goals

Goal No. 1: Retirement

Most individuals buy mutual funds for long-term goals, especially retirement. It is estimated
that retirees will need 70 to 80 percent of their final, pre-tax income to maintain a
comfortable lifestyle in retirement. If you plan to retire at age 65, retirement savings should
last for at least 18.5 years, since the average life expectancy for a 65-year-old is 83.5,and
continues to rise. Ideally, individuals use a combination of sources to fund retirement, such
as Social Security benefits, employer-sponsored retirement plans-like 401(k) plans—and
personal savings, including Individual Retirement Accounts (IRAs).

Goal No. 2: Education

Many parents and grandparents use mutual funds to invest for children’s college educations.
Your time horizon is an essential consideration when investing for education: if you start
when the child is born, you have 18 years to invest. However, if a child or grandchild is in
your future, the time horizon can be lengthened by investing now

Goal No. 3: Emergency Reserves and Other Short-Term Goals

Emergency reserves are assets you may need unexpectedly on short notice. Many investors
use money market funds for their reserves. Money market funds alone, or in combination
with short-term bond funds, can also be appropriate investments for other short-term goals.

1.1.6 OTHER SCHEMES

1. Tax Saving Schemes

These schemes offer tax rebates to the investors under specific provisions of the Indian
Income Tax laws as the Government offers tax incentives for investment in specified
avenues. Investments made in Equity Linked Savings Schemes (ELSS) and Pension Schemes

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are allowed as deduction u/s 88 of the Income Tax Act, 1961.The Act also provides
opportunities to investors to save capital gains u/s 54EA and54EB by investing in Mutual
Funds.

2. Special Schemes

•Index Schemes- Index Funds attempt to replicate the performance of a particular index such
as the BSE Sensex or the NSE 50

•Sectoral Schemes - Sectoral Funds are those that invest exclusively in a specified sector.
This could be an industry or a group of industries or various segments such as 'A' Group
shares or initial public offerings

1.1.7 HOW TO INVEST IN MUTUAL FUND

Step one - Identify your Investment needs

Your financial goals will vary, based on your age, lifestyle, financial independence, family
commitments, and level of income and expenses among many other factors. Therefore, the
first step is to assess your needs. You can begin by defining your investment objectives and
needs, which could be regular income, buying a home or finance a wedding or educate your
children or a combination of all these needs, the quantum of risk you are willing to take and
your cash flow requirements.

Step Two- Choose the right Mutual Fund

The important thing is to choose the right mutual fund scheme, which suits your
requirements. The offer document of the scheme tells you its objectives and provides
supplementary details like the track record of other schemes managed by the same Fund
Manager. Some factors to evaluate before choosing a particular Mutual Fund are the track
record of the performance of the fund over the last few years in relation to the appropriate
yardstick and similar funds in the same category. Other factors could be the portfolio
allocation, the dividend yield and the degree of transparency as reflected in the frequency and
quality of their communications.

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Step Three - Select the ideal mix of Schemes

Investing in just one Mutual Fund scheme may not meet all your investment needs. You may
consider investing in a combination of schemes to achieve your specific goals

Step four - Invest regularly

The best approach is to invest a fixed amount at specific intervals, say every month. By
investing a fixed sum each month, you buy fewer units when the price is higher and more
units when the price is low, thus bringing down your average cost per unit. This is called
rupee cost averaging and do investors all over the world follow a disciplined investment
strategy. You can also avail the systematic investment plan facility offered by many open-
end funds.

Step Five- Start early

It is desirable to start investing early and stick to a regular investment plan. If you start now,
you will make more than if you wait and invest later. The power of compounding lets you
earn income on income and your money multiplies at a compounded rate of return.

1.1.8 ADVANTAGES OF MUTUAL FUNDS

Mutual funds make saving and investing simple, accessible, and affordable. The advantages
of mutual funds include professional management, diversification ,variety, liquidity,
affordability, convenience, and ease of recordkeeping—as well as strict government
regulation and full disclosure.

•Diversification:

The best mutual funds design their portfolios so individual investments will react differently
to the same economic conditions. For example, economic conditions like a rise in interest
rates may cause certain securities in a diversified portfolio to decrease in value. Other
securities in the portfolio will respond to the same economic conditions by increasing in

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value. When a portfolio is balanced in this way, the value of the overall portfolio should
gradually increase over time, even if some securities lose value.

• Professional Management:

Most mutual funds pay topflight professionals to manage their investments. These managers
decide what securities the fund will buy and sell.

• Regulatory oversight:

Mutual funds are subject to many government regulations that protect investors from fraud.

•Liquidity:

It's easy to get your money out of a mutual fund. Write a check ,make a call, and you've got
the cash.

• Convenience:

You can usually buy mutual fund shares by mail, phone, or over the Internet.

• Low cost:

Mutual fund expenses are often no more than 1.5 percent of your investment. Expenses for
Index Funds are less than that, because index funds are not actively managed. Instead, they
automatically buy stock in companies that are listed on a specific index

● Transparency
● Flexibility
● Tax benefits

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1.1.9 DRAWBACKS OF MUTUAL FUNDS

•No Guarantees:

No investment is risk free. If the entire stock market declines in value, the value of mutual
fund shares will go down as well, no matter how balanced the portfolio. Investors encounter
fewer risks when they invest in mutual funds than when they buy and sell stocks on their
own. However, anyone who invests through a mutual fund runs the risk of losing money.

•Fees and commissions:

All funds charge administrative fees to cover their day-to-day expenses. Some funds also
charge sales commissions or "loads" to compensate brokers, financial consultants, or
financial planners .Even if you don't use a broker or other financial adviser, you will pay a
sales commission if you buy shares in a Load Fund.

• Taxes:

During a typical year, most actively managed mutual funds sell anywhere from 20 to 70
percent of the securities in their portfolios. If your fund makes a profit on its sales, you will
pay taxes on the income you receive, even if you reinvest the money you made.

• Management risk:

When you invest in a mutual fund, you depend on the fund's manager to make the right
decisions regarding the fund's portfolio. If the manager does not perform as well as you had
hoped, you might not make as much money on your investment as you expected. Of course,
if you invest in Index Funds, you forego management risk, because these funds do not
employee managers.

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 COMPANY
INTRODUCTION

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1.2 ABOUT THE COMPANY
The company has eighty years of experience in brokering business it was earlier known as
SSKI Group. The owner of the company is Mr. Dinesh Murikya. Sharekhan is one of the
leading retail brokerage firms 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 4 lakhs customers. The number of trading
members currently stands at over 3 Lakhs. While online trading currently accounts for just
over 1 per cent of the daily trading in stocks in India, Sharekhan alone accounts for 22 % of
the volumes traded online. 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 netbased 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 250 centers in 123 cities in India, of which 20 are fully-
owned branches.

SSKI- 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

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spread over India, Far East, UK and US. Sharekhan is the retail broking arm of SSKI, an
organization with more than eight decades of trust & credibility in the stock market.

● Amongst pioneers of investment research in the Indian market

● In 1984 ventured into Institutional Broking & Corporate Finance.
● Leading domestic player in Indian institutional business∙

SSKI GROUP COMPANIES

● SSKI Investor
● Services Ltd (Sharekhan)
● S.S. KantilalIshwarlal Securities
● SSKI Corporate FinanceIdream Productions

1.2.1 TECHNOLOGY USED BY COMPANY

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

SHAREKHAN BUSINESS

● Brokering business
● White feathering house production
●

VISION

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

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MISSION

To educate and empower the individual investor to make better investment decisions
through quality advice and superior service.

1.2.2 AREAS OF INVESTMENT THROUGH SHAREKHAN

● Derivative
● Commodity
● Equity
● IPOs
● Research Tips
● Portfolio Management Services
● Research Tips
● Ignite

DERIVATIVE MARKETS

Financial markets are, by nature, extremely volatile and hence the risk factor is an
important concern for financial agents. To reduce this risk, the concept of derivatives
comes into the picture. Derivatives are products whose values are derived from one or more
basic variables called bases. These bases can be underlying assets (for example forex,
equity, etc), bases or 9 reference rates. For example, wheat farmers may wish to sell their
harvest at a future date to eliminate the risk of a change in prices by that date. The
transaction in this case would be the derivative, while the spot price of wheat would be the
underlying asset.

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Development of exchange-traded derivative

Derivatives have probably been around for as long as people have been trading with one
another. Forward contracting dates back at least to the 12th century, and may well have
been around before then. Merchants entered into contracts with one another for future
delivery of specified amount of commodities at specified price. A primary motivation for
pre-arranging a buyer or seller for a stock of commodities in early forward contracts was to
lessen the possibility that large swings would inhibit marketing the commodity after a
harvest.

The need for a derivative market

The derivative market performs a number of economic functions:

● They help in transferring risks from risk adverse people to risk oriented people.
● They help in the discovery of future as well as current prices.
● They catalyze entrepreneurial activity.
● They increase the volume traded in markets because of participation of risk averse
People in greater numbers.
● They increase savings and investment in the long run.

COMMODITY

Although commodity derivatives command a humble share of 6% in the derivatives

segment across the world, yet these record high volumes in the markets the world over
compared to equity derivatives. In an era where risks to investments are on the rise, India
needs to switch to commodity derivatives and also to weather derivatives (when these are
launched), if it needs to top the list of developed nations. Of course with the other asset
classes offering attractive returns, "Why Commodities?" is the inevitable question that
pops in one's mind today, more so 10 considering that the BSE Sensitive Index is scaling
new highs by the day. Well, despite offering relatively lower returns, commodity
derivatives provide unique money-making opportunities to a wider section of market
participants, starting from planters to exporters, importers et al. And to the agrarian Indian

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 population commodities are obviously not new, nor are the advantages of trading in them
unknown.

● No balance sheet, P&L statement, EBITDA and reading between the lines.
Commodity trading is about the simple economics of supply and demand.
● Supports are known, only resistance matters! Minimum support price acts as a
statutory support for many commodities.
● No Dollar-Rupee premiums/discounts. No hedging on the NYMEX. Indian
commodity derivatives hedge both forex and commodity specific risks at a single
cost.
● No breaking of heads over market direction. Seasonality patterns quiet often
provide clue to both short- and long-term players.
● No scam, no price rigging. Commodity trading comes with nil insider trading and
company specific risk.

EQUITY

With a Sharekhan online trading account you can buy and sell shares in an instant. Any
time you want, from anywhere you like. A Sharekhan online trading account comes with a
depository participant account where you can keep all your shares, in safe custody with
National Securities Depository.

You can also link a Sharekhan online trading account to an Internet banking account of
your choice, so that you can move cash in and out of this account easily, without the
bother of writing cheques all the time.Sharekhan offers two types of trading accounts to
suit your trading habits: Sharekhan Classic account and Sharekhan speed trade account.

IPOS

An IPO, or Initial Public Offering, is the sale of shares by a company to the public for the
first time. Colloquially, it is said that a company is 'going public.'

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How is then that companies like ONGC and GAIL which are already listed are going for an
'IPO' again?

The government is the majority stockholder in these companies and it is offering a

percentage of its stock now to the public. So strictly speaking, public sector companies that
are already listed are not having their 'IPO' but they are going for a 'public offering' of their
shares. It's a technical distinction and one that should not bother individual investors. To
apply to an IPO you have to fill an IPO application form.

PORTFOLIO MANAGEMENT SERVICES

Sharekhan Portfolio not only gives the best summary of your investments but also includes
live price/events updates to give a complete view. Every investment made by you is
supported by a quick glance into the scrip so that you know the value of your money.

RESEARCH TIPS

Research tips can be accessed through the web based platform or through push notifications
on the desktop or as text messages and email in the mobile phones. These research tips
include:

•Pre market reports: This report consists of events, views and more

•Daring Derivatives: It covers all calls relating to futures and options

• High noon: It is a newsletter particularly aimed at technical traders. It carries punter calls
and Smart chart. It is released at noon and is to be acted upon during the day.

•Eagle eye: It is a newsletter similar to that of the high noon research except that the research
reports are to be applied on the next following day. This helps the technical traders to decide
their position better.

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•Value line: It is a monthly magazine which is released by SHAREKHAN to provide all the
details to the clients about the happenings of the past month based on which they can
anticipate their positions for the future.

•Stock Ideas: This provides the reports based on what is the best stock to choose during the
day. It provides the complete details as per the minimum amount, the maximum amount at
which the stock should be bought. Besides stop loss and target is also

•Mutual fund reports: Provides monthly reports based on what’s new and the top picks of the
mutual funds.

IGNITE

This is an educational Support tool that provides informative content for people who are
interested in making money through stock markets. This course categorized as per equity and
commodities, futures and options, currency trading etc. This entitles the company to earn
from the respective students, and is further entitles to encashment on the future course of
action, as these trained students would apply these strategies on the stock market and
generate the brokerage for the firm. Ignite features not only the educational aspect, but it also
includes an array of advanced features and technical indicators which is added as a support
tool in its flagship product Trade Tiger. Some of the premium features includes-

•Stock Scanner: Finding the perfect stock to trade in terms of performance and variations in a
day is difficult to decide. Stock scanner judges a stock based on the volume, spread, DATR,
Average Volume (50 days), % change in one week. It is based on these aspects that stock
scanner advises to put stocks on market watch and analyze.

•Position size Planner: Position size planner simulates the risks that the client wants to take
up as per the capital allocation size. 2% is the recommended risk that a normal trader should
take, but a risk taker would obviously try taking up more risk. Such a Position size planner
comes in to picture, when a Bracket Order is taken.

26
•Ignite decision support tool: Ignite provides the clients with “calls” that they can take up
either for-

1.2.3 SWOT ANALYSIS

A SWOT analysis focuses on the internal and external environments, examining strengths
and weaknesses in the internal environment and opportunities and threats in the external
environment.

STRENGTHS

Services
As a product Sharekhan is a extremely innovative product with very less cost. Services like
online trading facility, institutional and domestic broking, customized research reports with
almost 80% efficiency etc give Sharekhan an edge over its competitors. Sharekhan provides
other support services that make retail investors more confident and assured with their
trading. SMS alerts (allowing traders and investors to make the most of the available
opportunities), Softer, intangible features like imagery, equity driving preference. Through
efficient trading processes Investors can place their orders directly on the Internet, do all the
information seeking and basically own the investing process.

Distribution Network
Sharekhan with almost 250 branches spread across 123 cities beefed up by comprehensive
online research, advice and transaction services. In near future expect to make 200000+ retail
customers being serviced through centralized call centre / web solution, 60 branches/semi
branches servicing affluent/aggressive traders through highly skilled financial 14 advisors,
250 independent investment managers/franchisees servicing 50000 highly valued clients,
strong advisory role through Fundamental & technical research and new initiatives are being
made in Portfolio Management Services & Commodities trading.

Marketing
Sharekhan is a product of SSKI, a veteran equities solutions company with over decades of
experience in the Indian stock markets. Sharekhan does not claim expertise in too many

27
things. Share khan’s expertise lies in stocks and that's what it talks about with authority. So
when he says that investing in stocks should not be confused with trading in stocks or a
portfolio-based strategy is better than betting on a single horse, it is something that is spoken
with years of focused learning and experience in the stock markets.

Products
Company’s product line is quite flexible in the sense that there is a product for every kind of
investors. Also all the products cover all the loopholes of all the products offered by the other
competitors like low cost, user-friendly online trading services etc

WEAKNESS

Customer Satisfaction

As far as customer satisfaction goes Sharekhan has to tighten their socks. Many broking
houses catering to heavy investors or small segment of the market can afford to and does
provide relationship managers for their customers, who can understand the trading needs of
individual customers, and advise accordingly. However, a broking house like Sharekhan,
which caters to the mass segment, is in no position to provide relationship managers for
individual customers.

Branding
Though the company has a efficient products but large part of investment interested
population does not know the company. The most basic expectation for a trader or investor
when one 15 begins trading is that one must get timely delivery of shares and proceeds from
sale of shares. Also ones cash balances with the broker must be safe and secure. Though this
confidence in the broker comes with time and experience, good and transparent practices also
play a major role in imbibing confidence in traders.

28
Competition from banks
Most of the banks due to good branding have the faith of the customers of their banking
database. So they enjoy the liberty of huge database and customers find it more reliable to
trade there rather than with a unknown broker. Also banks like HDFC Bank and ICICI Bank
have the advantage of linking the trading accounts of their customers to saving accounts.
This makes trading easier, and at the same time a trader withdraws exactly as much money
from his account as is needed to complete the trade. Similarly sales proceeds are credited
directly to saving account.

OPPORTUNITIES

The external environment analysis may reveal certain new opportunities for profit and
growth.

Ever-increasing market
After the NSE brought the screen based trading system stock markets are now more secured
which has attracted lot of retail investors and the demand is increasing day by day. This has
resulted in improved liquidity and heavy volumes on transactions. Sharekhan is one of the
early entrants here. As to how much it will roar and how swift it can swoop on the market,
the future alone can answer such queries. Sharekhan has been a mega player and is known
for being a mover of stocks. It is also known for putting big deals through and enjoys good
networking with the FIIs. It has been dynamic enough to move with the times and capture the
opportunities that the market throws up from time to time.

Improving Technology
In country like India technology is always improving which gives the company a chance to
keep on improving their product with time whereas for the small players like local brokers it
will be difficult to keep the same pace as the changing technology. Also with SEBI lying
down some strict guidelines small brokers are finding it harder to retain the customers with
no research department and small capital. The traditional business model is highly dependent
on a large network of sub-brokers, and many established players may not have systems
(technology, customer service, etc.) capable of directly servicing so many retail customers

29
Unfulfilled needs of the customers
With so many competitors offering their products in the market but no one is able to
completely satisfy the customers. Some have the problem of lack of information or some
were scared of volatility of the stock markets. Sharekhan has the opportunity to tap this
unsatisfied set of customers and to make hold in the market. The Internet serves to break all
barriers to information, as it offers an extremely hassle-free investing platform. And,
Sharekhan hopes to fully utilize and capitalize on this platform. This original idea by
Sharekhan itself was born out of the consumer's need for a more transparent, easy to
understand and convenient option of investing in stocks.

Education Level
The education level in the country is improving year after year as far as technology goes.
With that the understanding of the stock market is also increasing and a lot of retail investors
are steeping in the markets which are being shown by increasing volumes, transactions and
indices

THREATS

New Competitors
A lot of new competitors are trying to enter the market in this bullish run to taste the flavor
of this cherry. This is creating a lot of competition for large players like Sharekhan and it is
creating little confusion in the minds of the customers about the services provided by the
broker. Also many banking firms are entering into the market with huge investment.
Competitors like ICICI, kotak, HDFC, 5-paisa etc. are posing a lot of threats to the
company.

Technology based business

Online trading is totally based on the technology, which is quite complex. Typically, the
technology solution has to start from the Internet front-end (or the screen that you see when
you begin trading). Then it needs to get into the 'middle tier' of risk management systems that
assess data from banks and depository participants (DP), calculate client risk at that point in

30
time, and give the 'Go/No go' advice to the trade. So technology is a kind of threat because
unless until it is working properly it is good but Internet is not that safe. Though a lot of
cyber laws are being made but not yet executed.

Problems of the Organization

● Lack of awareness of Sharekhan and stock market:Since the area is not known before
it takes lot of time in convincing people to start investing in shares primarily in IPO’s.
● Lack of Techno Savvy people and poor internet penetration:Since most of the people
are quite experienced and also they are not techno savvy. Also Internet penetration is
poor in India.

● Some respondents are unwilling to talk:Some respondents either do not have time or
willing does not respond, as they are quite annoyed with the phone call.

● Inaccurate Leads:Sometimes leads are provided which had error in it, which varies
from only 5-digit phone number, some people have registered to know about their
personal ueries. They are the unsatisfied clients of the company.

● Misleading concepts:Some people think that as all the shares are in electronic form
and they don’t have any physical proof. Sometimes this leads to a great
misconception of the entire process.

31
1.2.4 5 FORCES

FIGURE-2

MARKETING MIX

The marketing mix of Sharekhan is an excellent example we have seen in the industry
because no other brokering organization has such products to target the investors of different
minds, incomes and aims. There is an objective of satisfying the customer as to make him
delighted with affordable prices and convenient services. The fourth P of the marketing mix
is the best at Sharekhan in India because the total no. of share shops are widespread all over
to have the maximum contacts and awareness about Sharekhan, and we can say that it has
achieved that because it is having the maximum turnover than any other broker in India. The
Classic, Speed Trade and Speed Trade Plus are the trading products, which are one of the
bests in the market. The marketing is done based on leads generated through the web contact;

32
Tele-contact and personal contact with the customer and is a planned procedure to find out
new customers. The marketing management is carried out in an excellent way at Sharekhan.

PROMOTIONAL MIX

Promotional activities at Sharekhan are done by web, emails and personal contact. Sharekhan
is also organizing seminars and presentations and promotes its services to the clients. It is
spending Rs.20000 per month for promotional activities.As explained earlier, Sharekhan is
having the largest distribution chain of retail outlets of share shops. And it can be seen also
because there are 180 share shopsin 90 cities, which gives the maximum awareness to
Sharekhan. The distribution of Sharekhan is also proved by its turnover and awareness
among the investors in the stock market.

The marketing strategies followed by Sharekhan at this point are as given below:

The excellent marketing mix example- Product, Price, Place, Promotion and for services
additional 3Ps viz. People, Process and Physical evidence, are managed according to the
needs of the customers and try the best to deliver the maximum value to the customers for
what they pay a price. The HR and Operations are one of the best at Sharekhan to help the
customers for getting the needs fulfilled with a family culture and atmosphere of harmony,
peace and brotherhood and it is focusing on the specific segments like HNI, Delivery-based
and Intra-day

33
1.2.5 COMPETITORS OF SHAREKHAN LTD.

Some of the main competitors of Sharekhan Mutual Fund in Delhi are as follows:-

• ICICI Mutual Fund

• SBI Mutual Fund
• Reliance Mutual Fund
• UTI Mutual Fund
• Birla Sun Life Mutual Fund
• Kotak Mutual Fund
• HDFC Mutual Fund
• Sundaram Mutual Fund
• LIC Mutual Fund
• Franklin Templeton

34
35
 Chapter: 2
LITERATURE REVIEW

36
LITERATURE REVIEW
A literature review is an evaluative report of studies found in the literature related tour
selected area. The review should describe, summarize, evaluate and clarify this literature. It
should give a theoretical basis for the research and help us to determine the nature of our own
research. Select a limited number of works that are central to our area rather than trying to
collect a large number of works that are not as closely connected to our topic area .A
literature review goes beyond the search for information and includes the identification and
articulation of relationships between the literature and our field of research. While the form
of the literature review may vary with different types of studies, the basic purposes remain
constant:

a) Provide a context for the research

b) Justify the research

c) Ensure the research hasn't been done before (or that it is not just a "replication study")

d)Show where the research fits into the existing body of knowledge

e) Enable the researcher to learn from previous theory on the

subject f)Illustrate how the subject has been studied previously

g) Highlight flaws in previous research

h) Outline gaps in previous research

i) Show that the work is adding to the understanding and knowledge of the field

37
j) Help refine, refocus or even change the topic.

There is a vast body of literature by eminent scholars and financial experts on different
aspects of the stock market. The literature available on stock market mainly deals with
various aspects such as stock market efficiency, stock pricing, stock valuation and stock
market operations-. This chapter presents an overview of the important studies mid literature
on capital market. The review of the available literature shows that although there are a
number of studies on the different aspects of capital market, there is no specific
comprehensive study on the attitudes, aspirations and perceptions of individual investors.
The present study is an attempt to fill this gap to a certain extent.

DOW Theory Trends-The ideas of Charles Down the first editor of the Wall Street Journal,
form the basis of technical analysis. The Dow Theory is a method of interpreting and
signaling changes in the stock market direction based on the monitoring of the Dow Jones
Industrial and Transportation Averages. Dow created the Industrial Average, of top blue chip
stocks, and a second average of top railroad stocks (now the Transport Average). He believed
that the behavior of the averages reflected the hopes and fears of the entire market. The
behavior patterns that he observed apply to markets throughout the world.

Baumol (2000)In this paper researcher ascertains the importance of contribution to a better
understanding of the performance of the stock market. His book represents a synthesis of past
research and current thinking on the subject. It analyzes in considerable detail both the short-
run and long-run price equilibrating processes and points out important departures from the
competitive deal and the implications of these departures to stock market efficiency. Besides,
Baumol offers his own hypothesis on the pricing of securities, and he sheds new light on the
overall efficiency of the stock market as a mechanism for allocating the nation’s capital
resources.

Bhatia (2004)- In this researcher has made an evaluative study of the “New Issue Market
(NIM)” for the period. The role of the financial institutions in the NIM has been described
and evaluated. The study shows that a new class of middle - income individual investors has
emerged as an important supplier of the risk capital. The growth of joint stock companies

38
played an important role in the development of the new issue market. Besides, the
government also passed various legislations to protect the interests of the investors. Of the
various institutions involved in the organization of the NIM, stock exchanges are the most
important, because they provide a continuous market for issued securities.

Gupta (2016)-In this researcher he has studied about 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 suggest 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.

Rohatgi (2018) This research explains that the basic function of the stock market is to
provide ready marketability or liquidity to holdings of securities. The ideal stock market is
one that can provide instantaneous and unlimited liquidity. But it is reasonable to assume that
a prudent long-term investor in equities would provide for his immediate cash needs. This is
in agreement with the three motives of liquidity preference. If so, one would expect not
`instant' liquidity, but moderate liquidity. It will be unreasonable for any investor to suppose
that his equity holdings are as good as cash.

This study investigated the advocate liberalization of financial market. Study argues the state
intervention in setting interest rates and quantitative measures of resource allocation
adversely affect, not only allocating efficiency but also depress the aggregate saving rate in
less developed economies.

This study of researcher examines the role, and the cost of raising funds from the market. The
study goes on to suggest appropriate measures to enable the NIM to play a part in
consonance with the requirements of the planned growth of industry. The core of the study
deals with the new issues and company finance, the structure of underwriting, and the cost of
capital. The study has important policy implications in terms of its relevance to the national

39
economy. In the process of industrialization, a developed NIM would be instrumental in
forging an organic link between the collection and distribution of industrial capital.

Blume and Friend (2019)

This study states that the proportion of stock owned by institutional investors in America has
increased sharply, while that owned by individual investors has decreased. They analyze the
effects of the shift in stock ownership from individuals to institutions on the efficiency of
equity market. They also examine, the pros and cons of numerous proposals for improving

can usually buy mutual fund shares by mail, phone, or over the Internet.

40
 Chapter:-3
RESEARCH
METHODOLOGY

41
Research Methodology
Objective of the present study can be accomplished by conducting a systematic
market research. Market research is the systematic design, collection, analysis and
reporting of data and findings that are relevant to different marketing situations facing
the company. The marketing research process that will be adopted in the present study
consists of the following stages

a) Defining the problem and the research objective: The research objective
states what information is needed to solve the problem. The objective of the research
is to find out the facilities provided in mutual funds and share market and what will be
its benefits in the future.

b) Developing the research plan: Once the problem is identified, the next step is
to prepare a plan for getting the information needed for the research. The present
study will adopt the exploratory approach wherein there is a need to gather large
amount of information before making a conclusion. If required, the descriptive and
casual approaches may also be used.

c) Collection and Sources of data: Market research requires two kinds of data,
i.e., primary data and secondary data. Preparing questionnaires that will contain both
open-ended and close-ended questions may collect the primary data. Secondary data
will be collected from various journals, books and web sites.

d) Analyze the collected information: This involves converting raw data into
useful information. It involves tabulation of data and using statistical measures on
them for developing frequency distributions and calculating the averages and
dispersions.

e) Report research findings: This phase will mark the culmination of the
marketing research effort. The report with the research findings is a formal written
document. The research findings and personal experience will be used to propose
recommendations to develop the market in online trading.

42
PROPOSED METHODOLOGY

Methodology of the project starts with:

 In the first phase we are trained and they teach us different things about
market.
 After that they conduct a mock viva, in this they ask about the real life
problem faced by the customers.
 They provide leads and after that we make calls.
 Then after that we have to provide details of product and convince them
 Then we have to visit them and get the formed filled from them.
 Maintaining dairy of clients and contacting them at regular basis.
 Get the knowledge of technical as well as fundamental methods.
 Observe the patterns of the scripts.

This report is based on primary as well secondary data, however primary data collection was
given more importance since it is overhearing factor in attitude studies. One of the most
important users of research methodology is that it helps in identifying the problem,
collecting, analyzing the required information data and providing an alternative solution to
the problem .It also helps in collecting the vital information that is required by the top
management to assist them for the better decision making both day to day decision and
critical ones.

43
Objective of the Study:

1. To analyze out the preferences of the investors for assets management company.

2. To know about the latest and future development in the stock exchange trading
system.

3. To know the online screen based trading system adopted by SHAREKHAN and about
its communication facilties . The appropriate configuration to set the network, which
would link the SHAREKHAN to individual/ members.

4. To analyze the changes in trading after the exchange shifted from outcry to online
trading system.

5. To know the timings of the share market.

6. To know the difference between share market and mutual funds.

7. To know the various competitors in the mutual funds market.

8. To know the various exchanges of share markets all over the world.

9. To know the benefits of investing in share market and mutual funds.

10. To know how the value of shares and mutual funds calculated.

11. To know the brokerage system of the share market.

Data sources:

Research is totally based on primary data. Secondary data can be used only for the reference.
Research has been done by primary data collection, and primary data has been collected by
interacting with various people. The secondary data has been collected through various
journals and websites.

44
Duration of Study:

The study was carried out for a period of two months , from 03 July 2023 to 14 August 2023.

Types of data collection:

There are two types of data collection methods available.

1. Primary data collection
2. Secondary data collection

1) Primary data collection method

The primary data is that data which is collected fresh or first hand, and for first time
which is original in nature. Primary data can collect through personal interview,
questionnaire etc. to support the secondary data.

2) Secondary data collection method

The secondary data are those which have already collected and stored.
Secondary data easily get those secondary data from records, journals, annual reports
of the company etc. It will save the time, money and efforts to collect the data.
Secondary data also made available through trade magazines, balance sheets, books
etc.
This project is based on primary data collected through personal interview of
head of account department, head of SQC department and other concerned staff
member of finance department. But primary data collection had limitations such as
matter confidential information thus project is based on secondary information
collected through five years annual report of the company, supported by various
books and internet sides. The data collection was aimed at study of working capital
management of the company

45
Sampling:

Sampling procedure:

The sample was selected of them who are the customers/visitors of Sharekhan Ltd. of Delhi,
irrespective of them being investors or not or availing the services or not. It was also
collected through personal visits to persons, by formal and informal talks and through filling
up the questionnaire prepared. The data has been analyzed by using mathematical/Statistical
tool.

Sample size:

The sample size of my project is limited to 50 people only. Out of which only 44 people
preferred to invest in Sharekhan Mutual Fund while 6 people preferred to invest in other
Mutual Fund Company.

Limitations:
Though the present study aims to achieve the above-mentioned objectives in full earnest and
accuracy, it may be hampered due to certain limitations. Some the limitations of this study may be
summarized as follows:

 Getting accurate responses from the respondents.

Locating the target customers of mutual funds is very time consuming.

46
 Chapter:- 4
ANALYSIS AND
INTERPRETATION

47
DESCRIPTIVE ANALYSIS

Q.No.:-1
TABLE-1

Age Response

Below 20 9

20-40 31

40-60 8

Above 60 2

GRAPH-1

Interpretation:-
It is seem from the above graph that the more numbers of respondent are in the age groups of
20-40 years. The least numbers of respondent are in the age group of above 60 years.

48
Q.No.:-2
TABLE-2

Gender Response

Male 31

Female 19

GRAPH-2

Interpretation:-
In the above graph, we see that the numbers of male respondent are more than the female.
From the total 50 respondent 31 are male and 19 are female.

49
Q.No.:-3

TABLE-3

Occupation Response

Students 24

Business 8

Govt. Employees 3

Private Employees 10

Retired 2

Unemployed 3

GRAPH-3

Interpretation:-
From the above graph, we can see that more numbers of respondent are Students (24),
Private Employees (10), Business (8), Govt. Employees (3), Unemployed (3) and Retired (2).

50
Q.No.-4
TABLE-4

Your Monthly Income Response

Below 10,000 17

10,000-25,000 14

25,000-50,000 12

Above 50,000 6

GRAPH-4

Interpretation:-
We can see from the above graph that the people with income group of below Rs. 10,000 are
more(17), Rs.10,000-25,000 (14), Rs. 25,000-50,000(12), above Rs. 50,000(7).

51
Q.No.-5

TABLE-5

How much you save? Response

Below 5,000 30

5,000-10,000 13

10,000-20,000 3

Above 20,000 3

GRAPH-5

Interpretation:-
We can see from the above graph that the people of who are saving monthly amount is more
i.e. Below Rs. 5,000 and least i.e. Above Rs. 20,000.

52
Q.No.-6

TABLE-6

Where do you invest your Response

saving?

Mutual Fund 17

Equity 5

Insurance 11

Fixed Deposit 17

GRAPH-6

Interpretation:-
From the graph, it represent that people invest more in both Fixed Deposit & Mutual Fund
i.e. (17), and least in Equity i.e. (5).

53
Q.No-7
TABLE-7

If you invest in mutual fund, Response

which company?

Sharekhan ltd. 6

ICICI Direct 13

SBI Blue Chip Fund 21

HDFC Mid Cap 10

GRAPH-7

Interpretation:-
From the above graph, we can say that 21 people like to invest in SBI Blue Chip, and 6
people like to invest in Sharekhan.

54
Q.No.-8

TABLE-8

Are you satisfied? Response

Yes 38

No 12

GRFAPH-8

Interpretation:-
In the above graph, 38 people are satisfied with their investment while 12 people are not
satisfied with their investment.

55
Q.No.-9

TABLE-9

Your investment decision are Response

influence by

Oneself 19

Broker 4

Eco. Police 0

Market Research 11

Friends/Relatives 14

Any other 2

GRAPH-9

Interpretation:-
In this graph 19 people invest by their oneself while 31 people invest by getting influence by
friends, relatives, market, broker, etc.

56
Q.No.-10

TABLE-10

What are the factor which you Response

considered before investing?

Financial position 6

Current Market Position 12

Goodwill 6

Future Prospects 18

Any others 8

GRAPH-10

Interpretation:-
In the above graph, 18 people consider Future prospectus while investing, 12 people consider
Current Market Position, 6 people consider Financial position and Goodwill while 8 people
consider any other factor.

57
4.2 FORMULATION OF CHI SQUARE

TABLE-11

If you Invest in Mutual Fund, which Mutual Fund you preferred? Total

SHAREKHAN ICICI SBI HDFC

LTD. DIREC BLUECHI
T P MID CAP
MALE 2 7 15 7 31
Gender
FEMA
4 6 6 3 19
LE

Total 6 13 21 10 50

TABLE-12
Chi-Square Tests

Value Df Asymp. Sig. (2-

sided)

Pearson Chi-Square 3.524a 3 .318

Likelihood Ratio 3.479 3 .324

Linear-by-Linear Association 2.749 1 .097

N of Valid Cases 50

58
 Chapter :5
FINDINGS ,
CONCLUSION
&
RECOMMENDATI
ONS

59
 FINDINGS

 Most people go for at 1st EQUITY investment then for MUTUAL FUND,
FIXED DEPOSITS AND INSURANCE. because equity gives good
return in short time as well as long term as compared to mutual fund.

 77% as compared to mutual fund at 23% return. It signifies mostly more

people go for share market as compared to mutual funds.

 Mostly investment decision are taken on the insistence of the brokers

firms and companies and that percentage is 36%. In this area Sharekhan
has its own research report and that strike rate has 80%. This is an
advantage to the customers of Sharekhan.

 The satisfaction level of current investment( in share) and long term

investment(mutual fund) than here shows that the satisfaction level in
current investment (shares) is 58% and satisfaction in long term
investment (mutual fund) is 42%.

 The investment in company or in firm is show in this bar graph. It is

evident that in the current market position accounts for 36% , most
investors go for investment after seeing the current market positions and
after that the financial position of company which is at 24%, then
goodwill of company at 20%,future prospects at 12%,and any other
factors at 8%.

 Sharekhan earn more brokerage in share trading as compared to all the

leading firms and companies and sharekhan get 284 vote and 23.34%
regarding to other firms and companies earning that is shown that
satisfied level, share khan strike rate all things are shown share khan ‘s
profit and market share.

60
 CONCLUSION

The strategy adopted by me in completion of this project help me a lot till

now in making comparison between share market and mutual funds. From the
analysis we can say that if there is more risk there is more return and we can
say that share market is totally dependent on the risk taken by the investors in
investing in shares. And in mutual funds there is less risk as the money of
investors invested in different sectors so it can divide the risk in different
portfolio adopted by mutual funds companies.

At last I can say that money invested in this rise and fall market it is
better to invest in mutual funds for those investors who are risk adverse and for
those who are risk taker it is better for them to invest in share market.

We can also say that in share market customers is decision maker while
in mutual funds investors is totally dependent on assets management company,
investors do not have active control on money invested by him/her.

In OJT the strategy adopted by me in achieving my target helped me a

lot. This strategy helped me in knowing the customer reaction towards share
market, customer’s attitude towards share broking firms and in this I helped
how to interact with the customers which is beneficial for me in future.

61
 SUGGESTIONS

After interpretation and analysis, I am giving certain suggestions to the

company which I hope may be helpful for the company.

 The company should utilize its stock more efficiently.

 The company should pay attention towards the proper and efficient
utilization of working capital.

 The company can reduce the time for purchase order. The buffer should
be maintained in case of emergency. Insurance should be covered
especially fire in case of transit journey also.

 The company should provide some Opportunity to the New Customer

OF SHARES.

62
 BIBLIOGRAPHY

 www.google.com

 www.sharekhan.com

 www.amfi.com

 www.mutualfunds.com

 www.economictimes.com

 www.sebi.gov.in

 www.investopedia.com

 www.investors.com

 www.moneycontrol.com

 www.altavista.com

 www.dogpil.com

63
DATE: 30 July – 3July 2023 SHIFT: Afternoon

DEPARTMENT: Finance and Marketing SECTION: A

TASK CARRIED OUT: Explore various segments of financial markets:

IRDAI (Insurance Regulatory and Development Authority of India),

SEBI (Securities and Exchange Board of India), RBI (Reserve Bank of
India), and AMFI (Association of Mutual Funds in India) have all
been investigated.

Investigated several market kinds such as the money market, security

market, and commodities market.
Investigated the procedure and significance of Initial Public Offerings
(IPOs) in the financial industry.

OBSERVATIONS:

Identified the critical functions of regulatory authorities such as

IRDAI, SEBI, RBI, and AMFI in guaranteeing the smooth operation
and integrity of financial markets.
Recognized the distinctions between various markets, such as the
functions and instruments involved in the money market, securities
market, and commodities market.
The significance of IPOs as a mechanism for corporations to generate
capital, as well as the impact of these offers on market dynamics, has
been noted.

SIGNATURE OF SUPERVISOR/H.O.D:

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DATE: 4 July – 10 July 2023 SHIFT: Afternoon
DEPARTMENT: Finance and Marketing SECTION: A

Task Carried Out: The workings of the debt market, including bonds,
debentures, and other fixed-income products, were investigated

In the debt market, I studied the dynamics of bond issuance, pricing,

and valuation.
Debt instruments' roles in corporate finance and government funding

have been examined.

Observations:
Recognized the value of debt instruments in diversifying investment

portfolios and generating a consistent revenue stream.

The diverse risk profiles associated with various types of debt
securities, as well as their impact on investors' risk appetite, were
noted.
Investigated the relationship between interest rates and bond prices,
gaining a grasp of the debt market's fluctuations in reaction to
economic developments.
The importance of credit ratings and credit risk assessment in evaluating debt
securities for investment purposes has been identified.

SIGNATURE OF SUPERVISOR/H.O.D:

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DATE: 11July – 17 July 2023 SHIFT: Afternoon

DEPARTMENT: Finance and Marketing SECTION: A

TASK CARRIED OUT: Explore various segments of financial markets:

Studied Fixed Deposits (FDs) and Recurring Deposits (RDs), examining their
characteristics as fixed-income instruments with varying tenures and interest rates.

Explored investment in Real Estate, understanding property as an asset class, its

potential for long-term appreciation, and rental income.
Investigated Public Provident Fund (PPF) and National Savings Certificates (NSC)
as government-backed savings instruments, noting their tax benefits and fixed returns.
Examined Gold as a commodity investment, considering its role as a hedge against
inflation and market volatility.
Analyzed Equity and Debt Markets, understanding their dynamics, risk-return
profiles, and investment strategies.
Conducted 10 market survey to gather insights into investor preferences, market
trends, and financial needs.
OBSERVATIONS:

Recognized the diverse nature of investment products, each catering to different risk
appetites and financial goals.
Explored the advantages of Mutual Funds in providing diversification and
professional management compared to individual stock picking.
Noted the stability and assured returns offered by FDs, RDs, PPF, and NSC, making
them suitable for risk averse investors.
Explored the role of Gold as a safe-haven investment during economic uncertainties.
Examined the complexities of Equity and Debt Markets, acknowledging their
potential for higher returns alongside varying levels of risk.

SIGNATURE OF SUPERVISOR/H.O.D:

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DATE: 18 July – 24July 2023 SHIFT: Afternoon

DEPARTMENT: Finance and Marketing SECTION: A

Task Carried Out:

Investigated the landscape of mutual fund schemes, including several

categories such as equity funds, debt funds, hybrid funds, and index funds.
- The characteristics and investing strategies unique to each mutual fund type

were investigated.
- Examined the risk-return profiles of various schemes, as well as their
suitability for various investor preferences and financial objectives.

Observations:
- Recognized the distinguishing characteristics of equities funds, which invest
largely in stocks, seeking for bigger returns but frequently with increased
volatility.
- Looked into debt funds, emphasizing their focus on fixed-income securities
and lower risk when compared to equities funds.
- Highlighted the benefits of hybrid funds, which combine both equity and

debt components to balance risk and returns.

- Recognized the concept of index funds, which mirror the performance of a
market index while delivering reduced expense ratios due to passive management.
Conducted 10 market survey to gather insights into investor preferences, market
trends, and financial needs.

SIGNATURE OF SUPERVISOR/H.O.D:

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DATE: 25 July – 31 July 2023 SHIFT: Afternoon
DEPARTMENT: Finance and Marketing SECTION: A

Task Carried Out:

Investigated the complexities of equity derivatives, diving into complicated

instruments such as swaps and forwards and comprehending their uses in risk
management and speculation.
- The impact of derivatives on market dynamics was investigated, particularly
their involvement in price discovery and liquidity augmentation.
- Analyzed the regulatory frameworks controlling equities derivatives markets,
concentrating on risk management methods and market integrity.

Observations:
Recognized the various techniques used with derivatives, such as arbitrage,
hedging, and speculating, and their effects on market efficiency.
- Investigated the difficulties involved with derivatives trading, such as
counterparty risks and the possibility of systemic effects on financial markets.
- Recognized the significance of ongoing monitoring and evaluation of derivative
positions due to their susceptibility to market fluctuations.
- Recognized the changing nature of derivative products, as well as their
adaptation to changing market conditions and investor needs.

SIGNATURE OF SUPERVISOR/H.O.D:

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DATE: 1August – 7August2023 SHIFT: Afternoon

DEPARTMENT: Finance and Marketing SECTION: A

Task Carried Out:

Investigated numerous standard and alternative investment opportunities:

Mutual funds, fixed deposits (FDs), recurring deposits (RDs), real estate, public
provident fund (PPF), national savings certificate (NSC), gold, equity, and debt
market were all investigated.
The features, risk profiles, and possible returns associated with each investment
avenue were investigated.
The role of these products in diversifying investment portfolios and risk
Management was examined.

Observations:
Recognized the variety of investment options available, each catering to a distinct
risk appetite and financial goal.
- Investigated the benefits of mutual funds in terms of diversification and
professional management over individual stock selecting.
- Noted that FDs, RDs, PPFs, and NSCs provide stability and guaranteed returns,
making them suited for risk-averse investors.
- Investigated the importance of gold as a safe-haven investment during times of
economic uncertainty.
- Examined the complexity of the equity and debt markets, seeing the possibility
for better profits while recognizing the varied levels of risk.

SIGNATURE OF SUPERVISOR/H.O.D:

DATE: 8August – 14 August2023 SHIFT: Afternoon

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DEPARTMENT: Finance and Marketing SECTION: A

Task Carried Out:

Role-playing scenarios were used to model client-advisor interactions, and

portfolio creation customized to varied client needs and risk profiles was
practiced.
- Investigated effective communication tactics and problem-solving procedures for
dealing with difficult client circumstances.
- Created investment ideas that were in line with client objectives,
honing approaches for effective presentation delivery and client interaction.
Observations:
Recognized the need of building trust and connection with clients in order to
generate an environment conducive to financial discussions.
- Investigated risk assessment approaches, tailoring investing strategies to
different risk tolerances.
- Emphasized the significance of clear, succinct communication and language
matched to the client's comprehension for effective decision-making.
- Recognized the art of storytelling in investment presentations, developing a
narrative to resonate with customers and improve comprehension.
- Investigated active listening strategies during client engagements, effectively
addressing concerns to achieve client satisfaction and commitment.
- Recognized the need of follow-ups and summaries of key themes in reinforcing
customer comprehension and commitment.

SIGNATURE OF SUPERVISOR/H.O.D:

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