PRESENTATION ON NEED OF FINANCIAL ADVISOR FOR

INVESTMENT

PRESENTED TO PRESENTED BY

MS NEHA NAIR TARA NAND CHOUDHARY

CONTENTS

Project title Objective of project Methodology Sampling Sip About IL&FS Investsmart Learnings Analysis and Finding Conclusions Recommendation

PROJECT TITLE

NEED OF FINANCIAL ADVISOR FOR INVESTMENT IN STOCK

MARKET IN ONLINE TRADE

OBJECTIVESObjective of the Project: Primary objective-

To find out if there is NEED OF FINANCIAL ADVISORS FOR ONLINE INVESTMENT IN STOCK MARKET

  Secondary objective- To know offline and online investment in stock market. Investor’s perceptions on online investment. Investor’s perception of financial advisors for online investment. How much worthy these financial advisors for online investment? Why/why not do people choose online investment? Which of different broking organization gives the most reliable

information/tips? To find out the work of IL&FS INVESTSMART. To find out the reasons of success of ILFS INVESTSMART.

METHODOLOGY

Both primary as well as secondary data collection.

In primary method ,a quantitative exploratory study was conducted by interviewing the investors in Ahmedabad. This was done by formulating a proper questionnaire.

In the secondary method we browsed through various websites, books, magazines, newspapers, periodicals etc. to find out various avenues available for financial advisor.

SAMPLING

Working population : investors in stocks, mutual funds, real estate, gold etc. at selected brokerage firms, investment consultants; working professional.

We personally interacted with the working professional who had made investments.

We had used simple random-sampling within the selected working population.

Sample size selected was 204 because working population is homogenous (i.e. interacting directly with the investors). Moreover, there are constraints like time, money

PROBLEMS FACED & STRATEGIES TO SOLVE THEM…..

1. Data calling /Meeting to customer

1). Why should customer pay in advance for services?

ANS. “MODEL PORTFOLIO”

2). Why offline trader need to shift to online services TOLL FREE NO:- 1800-22-4444 DO IT THEIR OWN

3). What is guarantee of Investment return?

ANS. From company side, I can say 15% but not written.

CONTD…2. Canopy activity Size of canopy (Dispute in Maninager) Too heavy to carry

3.Umbrella activity Too light weight so some time falls down One person required to stand along with umbrella

4.Calling to references Where did you get my no.

5. Trainee recruitment activity Not enough references

CONTD…6. Called calling1) In corpotates

I. Get stuck at “reception”

Sol: Make a call & get an appointment.

II. Permission for “corporate presentation”

Ex. NID(National Institute of Design)

Sol. Permission was not given from higher authority so, We did cold calling on the road out side NID

2) By Road sideI. Hot weather- No one wants to stand even for 5 min.

Sol. Do called calling either in Morning (Like at IIM)

OR in evening (like in GHATLODIA).

FINDINGS AND ANALYSIS

DO YOU INVEST IN STOCK MARKET?

WHICH TYPE OF INVESTOR YOU ARE?

WHICH MODE DO YOU USE FOR INVESTMENT?

WHAT IS YOUR FREQUENCY OF INVESTMENT?

TYPE OF INVESTOR * MODE OF INVESTMENT

Which mode do you use for your

investment?

OnlineOfflin

e Both TotalWhich type of investor you are?

Short term

43 5 5 53

Long term

12 16 10 38

Both

13 9 53 75

Total 68 30 68 166

INVESTMENT AVENUES AND THEIR MEAN

Investment option Mean Equity 4.31

Bonds 1.64

Mutual funds 3.60

fixed deposite 3.74

life insurance 3.78

real estate 2.24

gold & silver 2.70

INVESTMENT AVENUE

Equity

Bonds

Mutual funds

fixed deposite

life insurance

real estate

gold & silver

others

rated 1

140 5 3 2 1 13 5

rated 2

8 3 22 14 34 4 10

rated 3

4 7 5 19 41 3 10

rated 4

05 4 4 11 4 9

rated 5 1 0 1 1 2

0 3

Total 153

20

35 40 89

2437

REASONS BEHIND CHOICE OF INVESTMENT OPTIONS

Self-

Awar

enes

s

Med

ia

Brok

er’s A

dvice

Frie

nds’ o

r Rel

atives

’ Adv

ice

Fina

ncia

l Adv

isor

s0

204060

64

13 17 10

62

PROBLEM FACED DURING ONLINE TRADING

Frequency Valid PercentFrequently

24 14.5

Sometimes90 54.2

Rarely34 20.5

Not at all18 10.8

Total166 100.0

WHY DO PEOPLE NEED A FINANCIAL ADVISOR?

TYPE OF INVESTOR * RATE OF FINANCIAL ADVISOR

How would you rate the overall need of Financial Advisors for investment in stock market? Total

1 2 3 4 5 6 7 8 9 10 1

Which type of investor you are?

Short term

7 4 2 3 9 6 9 7 5 1 53

Long term 4 1 2 5 5 7 5 5 2 2 38

Both

4 0 2 4 6 15 16 14 13 1 75

Total 15 5 6 12 20 28 30 26 20 4 166

SATISFACTION LEVEL OF FINANCIAL ADVISOR’S SERVICES

 Frequency Valid Percent

Highly satisfied 11 12.6

Considerably Satisfied

41 47.1

Reasonably Satisfied

21 24.1

Unsatisfied11 12.6

Highly Unsatisfied

3 3.4

Total 87 100.0

Rank Mean RankPMS

2.01

RMS

2.07

+ve investment result

1.91

SERVICES OF A FINANCIAL ADVISOR

RANK OF BROKING COMPANIES

Broking Companies Mean RankRank of sharekhan

2.25

Rank of ICICIdirect2.67

Rank of IL&FS Investsmart

3.00

Rank of Kotak Security4.13

Rank of India Infoline4.26

Rank of Reliance Money4.69

INVESTORS’ BROKING COMPANY & IL&FS PERCEPTION

Do you think IL&FS INVESTSMART Securities Limited is the best Financial

Advisor Company?

yes no can't say totalWith which Broking Company/Companies you are associated?

Sharekhan 2 16 3 21

ICICIdirect 2 3 7 12

IL&FS Investsmart 37 7 4 48

Kotak Securities 2 7 8 17

India Infoline 1 12 8 21

Relaince Money 1 8 4 13

Total 45 53 34 132

INFLUENCING FACTOR OF COMPANIES

INFLUENCING FACTOR OFIL&FS

INVESTORS’ OPINION ABOUT SERVICES CHARGED BY IL&FS

Frequency PercentVery high

18 33.3

High25 46.3

Reasonable11 20.4

Negligible0 0

Total 54 100

SATISFACTION LEVEL OF IL&FS

PROBLEM WORKING WITH IL&FS

IS IL&FS THE BEST COMPANY?

LEARNINGS FROM “SIP”

Training of products Marketing & sellingData callingCanopy and Umbrella marketing –Cold-calling -Meeting with referencesTrainee recruitment activity

FINDINGS

During the survey service class people showed positive attitude in share trading.

Most investors are trading online and daily and choosing equity.

Those who have Interest in share trading most of them are either trading themselves or taking help of financial advisor.

Most of people are satisfied with their financial advisor. The investor of Ahmedbad grading sharekhan as the best

broking company and IL&FS as third from the top.

CONCLUSION

More investors are willing to invest in stock market rather than investing in debt and bonds instruments.

Equity is the preferred instrument. People choose financial advisor due to lack of time

and lack of knowledge. Lack of knowledge among investors. Investors are brand and service as well as brokerage

charge conscious. Communication gap between investors and IL&FS.

RECOMENDATIONS

Need to create awareness about the brand. Can attract more clients by providing free tips to them. Need to focus on advertisement. Need to create awareness among investors. More efforts towards personalized services. Financial results of the company should be provided to

investors. Their should be some decentralization.

THANK YOU