PROJECT SUBMITTED TO TRIDENT ACADEMY OF CREATIVE TECHNOLOGY

IN PARTIAL

FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE

OF

BACHELOR OF BUSINESS

ADMINISTRATION

By

Jyoti Jawahar Jena(Registration Number:09BBA216)

(2009-2012)

External Guide: Internal Guide:

Mr. Amit Mishra Ms.Evelina Mohapatra

Unit Manager Faculty of Management

Studies,TACT

BMA Wealth Creators Limited. Chandaka Industrial Estate

Bhubaneswar Bhubaneswar-751024

1

I here by declare that the project report entitled “ Customers perception

towards investment in Equity Market with reference to BMA Wealth

Creators Limited”, submitted in partial fulfilment of the requirements for the

degree of Bachelor of Business Administration to TRIDENT ACADEMY OF

CREATIVE TECHNOLOGY, is my original work and not submitted for the award

of any other degree, diploma, fellowship, or any other similar Title or prizes .

Place: Bhubaneswar Jyoti Jawahar Jena

Date: Reg No: 09BBA216

2

DECLARATION DECLARATION

This is to certify that the project entitled “Customers perception towards

investment in Equity Market with reference to BMA Wealth Creators

Limited” is the bonafide research work carried out by Mr. Jyoti Jawahar Jena ,

student of TRIDENT ACADEMY OF CREATIVE TECHNOLOGY,Bhubaneswar,

during the year 2011-2012, in partial fulfilment of the requirements for the

award of the Degree of Bachelor of Business Administration and that the project

has not formed the basis for the award previously of any degree, diploma,

associate ship, fellowship or any other similar title.

Place: Bhubaneswar

Date: Signature of the Guide

3

CERTIFICATE CERTIFICATE

I take this opportunity to express my deepest gratitude to all those people,

without those spontaneous support, guidance, encouragement and

understanding, this project would never had reached completion.

It was my privilege to work with BMA Wealth Creators Ltd . I am

indebted to Mr. Amit Mishra (Unit Manager) who acted as philosopher

and guide through all the stages of completion of the project.

Mere words of gratitude will never suffice to their valuable guidance,

patience and faith shown in my work.

I would also like to avail this opportunity to express my sincere thanks

and profound gratitude to my project guide,whose valuable knowledge and

guidance have maid me complete this project successfully.

I acknowledge the timely help extended by all my colleagues and all the

unmentioned names from the concerned field.

It has been rightly quoted that each milestone turned over, is an outcome of

mans sincere endeavors. Though, at the start of any ambitious project, one

always encounters certain difficulties. However, overcoming those difficulties,

completing the project as well as making it a success, greatly depends on the

encouragement, inspiration and help given by many people. We too, without

the encouragement, inspiration and by taking help of others, would not have

been able to complete our research project, successfully.

4

ACKNOWLEDGEMENTACKNOWLEDGEMENT

This research project was a great source of learning and a good experience as

it gives us an opportunity to correlate the theoretical knowledge which we had

gained from our teachers and well wishers, with practical facts and aspects.

Though fulfiling the ambitions one always encounters with certain difficulties,

however overcoming these difficulties and making the project a scuccess entirely

depends upon the encouragements, inspirations and help rendered by the staff

members of the organization.

Jyoti Jawahar Jena

5

This is to certify that the project work entitled “Customers Perception

towards Investment in Equity Market with reference to BMA Wealth

Creators Limited” is an authentic record of the project work done by JYOTI

JAWAHAR JENA of TRIDENT ACADEMY OF CREATIVE TECHNOLOGY during

the period 2011 in this organization under my guidance and supervision for the

partial fulfilment of the course, Bachelor of Business Administration.

Date: Mr. Amit Mishra

Unit Manager

BMA Wealth Creators Limited,

Bhubaneswar.

6

CERTIFICATE CERTIFICATE

The study titled “Customers’ perception towards investment in Equity

Market with reference to BMA wealth creators Ltd.” was carried out with

the aim of locating the usefulness of investment planning while making any

investment decision. It is seen in India that, most of the investors do not possess

any technical knowledge of investment.

Financial planning means achieving a financial target with a given time frame. It

covers many things like desired degree of financial independence, retirement

objectives, children education, taxes, and cash flow problems, not having a

savings strategy, etc. In other words, the project is all about analysing the

benefits of investment planning before making an investment decision. The main

tool that is decided to collect data and reactions is a questionnaire. Then those

data is analyzed using some statistical tools like Pie chart and Bar Diagram.

Through my study, I have found out that the investors reacted late to the market

and as a result- many of them fallen into huge losses due to market volatility.

Again, investments are not done only for ‘investment’ purpose. Some investors

invest to save tax as the only purpose behind it. Bank FDs are also a popular

method of investment. Now while analyzing the values and services that drives

the clients of a company to stay with them are mainly correctness of information

and timely attention to them. Relationship also plays a major role in this regards.

About concluding the report, it is demonstrated how a good investment planning

can do wonders. It is recommended in the report that the company should take

due initiatives to develop the knowledge of its clients which could be done

through organizing events like investors meets.

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Executive SummaryExecutive Summary

I hope BMA Wealth Bhubaneswar will recognize this as well as take more

references from this project report.HR Department has been given more

emphasis for the study of project because it is the only sector where all type of

age group,Income class and different level of peole are represented.

According to the market study, Bhubaneswar is one of the potential market for

the equity trading because the number of account holder is very less in the city

due to some drawbacks of this facility. The people do not want to avail this

facility and the current users of the account are also not using this facility. If the

company removes their drawbacks then it is sure the company will get great

response from the customer.

Investment is nothing but the saving of an individual, which is remind after

satisfying day-to-day necessity. He invests it somewhere to earn some returns

onthe saving. The investors has many choices to invest his money e.g.

SavingDeposit, Fixed Deposit, Insurance Policy, Company Deposits, Capital

Market,Properties and many other among all the option he have to choose one or

two toinvest his money and take care of not loosing the money in whatever he

invest.

I have visited number of new investors who want to invest the market, the questionnaire, and

formal meeting and normal decision with the clients helped me for collecting valuable

information for the study of market and investors. It is also useful for me to reach to the

conclusion of the project. Most of them are in the age bracket of 30 ± 40 years, I think this

age group people are very enthusiastic to do anything and want to achieve things in shorter

span of time.

I hope BMA Wealth Creators will recognize this as well as take more references

from this project report is to know the drawbacks of their euity trading account

and the need and wants of the customer.

8

The company can get the knowledge of other organizations facility which the

BMA Wealth Creators can offer to the customers. The company can get the

knowledge that which is most potential income and occupation group of

customer for offering trading account/demat account. After analyzing feedback

the conclusion has been made that bhubaneswar is one of the potential market

for customer but company has to give special emphasis on customers demand

for the accounts and services.

Therefore they attracted towards stock market. Because of volatile stock

marketgives higher return as well as losses to the investors.

The end result I found after doing the whole exercise is that the

investorsexpectations are very high they want more returns from short and

smallinvestment.

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TABLE OF CONTENTS

Subject Items Page

No.

Cover page 1

Declaration 2

Internal Guide Certificate 3

Acknowledgement 4

External certificate 6

Executive Summary 7

Table of Contents 10

Introduction 11

Literature Review / Theoretical Background 12

Company / Product Profile 16

Brief Profile of Products / services of the above said company

Data Analysis and Interpretation 31

Research analysis 38

Summary and Conclusion 48

Questionnaire 50

Bibliography 53

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INTRODUCTIONA stock market or equity market is a public entity (a loose network of economic

transactions, not a physical facility or discrete entity) for the trading of company

stock (shares) and derivatives at an agreed price; these are securities listed on a

stock exchange as well as those only traded privately.

The size of the world stock market was estimated at about $36.6 trillion at the

start of October 2008.

The stocks are listed and traded on stock exchanges which are entities of a

corporation or mutual organization specialized in the business of bringing buyers

and sellers of the organizations to a listing of stocks and securities together. The

largest stock market in the United States, by market capitalization, is the New

York Stock Exchange (NYSE). In Canada, the largest stock market is the Toronto

Stock Exchange. Major European examples of stock exchanges include the

Amsterdam Stock Exchange, London Stock Exchange, Paris Bourse, and the

Deutsch Börse (Frankfurt Stock Exchange). In Africa, examples include Nigerian

Stock Exchange, JSE Limited, etc. Asian examples include the Singapore

Exchange, the Tokyo Stock Exchange, the Hong Kong Stock Exchange, the

Shanghai Stock Exchange . In Latin America, there are such exchanges as the

BM&F Bovespa and the BMV.

In India Bombay Stock Exchange (BSE) benchmark, Sensex & National Stock

Exchange (NSE), the 50-stock Nifty index.

The market in which shares are issued and traded, either through exchanges or

over-the-counter markets. Also known as the stock market, it is one of the most

vital areas of a market economy because it gives companies access to capital

and investors a slice of ownership in a company with the potential to realize

gains based on its future performance.

11

Relevance of the Study:Learn How to Invest

Discover How to Buy and Sell Stocks.

Uncover All the Investing Secrets.

Invest Profitably.

Determine Your Financial Future.

Learn Important Equities Rules.

You Need Expert Financial Advice.

Invest in Learning because Knowledge IS POWER.

Define YOUR Investing Objectives.

Objective:Customer perception towards Equity market basic objective .

That is funding to companies listed on that stock exchange.

Companies float their IPOs on exchange and in return give buyers right of

ownership and annual dividends (sometimes twice a year).

Companies sell their right of ownership to traders /investors /FIIs etc and in

return generate capital for their companies.

Stock Exchanges also attract lots of FIIs which is good for country economy.

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Equity sharing:

Equity sharing, also known as shared ownership or in the US as housing equity

partnership (HEP), allows a person to purchase a share in their home even if they

cannot afford a mortgage on the whole of the current value. It is generally used

in affordable housing, providing a "third way" of land tenure between home

ownership and renting.

There are various detailed methods to implement equity sharing, and it is

implemented in over a hundred community land trusts in the United States. The

remaining equity share may be held by the house builder, by a private investor

or by a landlord such as a housing association. In some models the resident pays

rent on that share.

Brokerage Firm:

A brokerage firm, or simply brokerage or broker in context, is a financial

institution that acts as a stock broker. Brokerage firms serve a clientele of

investors who trade public stocks and other securities

Stock Broker

A stock broker or stockbroker is a regulated professional broker who buys and

sells shares and other securities through market makers or Agency Only Firms on

behalf of investors. A broker may be employed by a brokerage firm.

Services provided by Stock Brokers:

A transaction on a stock exchange must be made between two members of the

exchange. An ordinary person may not walk into any stock exchange and ask to

trade stock. Such an exchange must be done through a broker.

There are three types of stock broking service.

Execution-only, which means that the broker will only carry out the client's

instructions to buy or sell.

Advisory dealing, where the broker advises the client on which shares to

buy and sell, but leaves the final decision to the investor.

Discretionary dealing, where the stockbroker ascertains the client's

investment objectives and then makes all dealing decisions on the client's

behalf. Similar roles

Roles similar to that of a stockbroker include investment advisor, and financial

advisor. A stockbroker may or may not be also an investment advisor, and vice

versa.

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Acting as a principal

Stockbrokers also sometimes or exclusively trade on their own behalf, as a

principal, speculating that a share or other financial instrument will increase or

decline in price. In such cases the term broker makes little sense and the

individuals or firms trading in principal capacity sometimes call themselves

dealers, stock traders or simply traders. There are many other types of traders

within capital markets, for example trading within the foreign exchange market.

Stock Market Index:

A stock market index is a method of measuring a section of the stock market.

Many indices are cited by news or financial services firms and are used as

benchmarks, to measure the performance of portfolios such as mutual funds.

Addendum to the definition

An index may also be considered as an instrument (after all it can be traded)

which derives its value from other instruments or indices. The index may be

weighted to reflect the market capitalization of its components, or may be a

simple index which merely represents the net change in the prices of the

underlying instruments.

Most publicly quoted stock market indices (like the two quoted below) are

weighted.

Types of indices

Stock market indices may be classed in many ways. A 'world' or 'global' stock

market index includes (typically large) companies without regard for where they

are domiciled or traded. Two examples are MSCI World and S&P Global 100.

A 'national' index represents the performance of the stock market of a given

nation—and by proxy, reflects investor sentiment on the state of its economy.

The most regularly quoted market indices are national indices composed of the

stocks of large companies listed on a nation's largest stock exchanges, such as

the American S&P 500, the Japanese Nikkei 225, the Russian RTSI and the British

FTSE 100.

The concept may be extended well beyond an exchange. The Wilshire 5000

Index, the original total market index, represents the stocks of nearly every

publicly traded company in the United States, including all U.S. stocks traded on

the New York Stock Exchange (but not ADRs or limited partnerships), NASDAQ

and American Stock Exchange. Russell Investment Group added to the family of

indices by launching the Russel Global Index.

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Equity sharing in the United Kingdom:

There are two forms of equity sharing in the UK, public sector and private sector.

Public sector equity sharing implies some form of taxpayer subsidy and is seen

by government as a useful tool of social policy, for example in allowing more first

time buyers to access property ownership.

The government in England facilitates shared equity chiefly through the Homes

and Communities Agency (HCA), currently under the banner of HomeBuy. This

covers a range of low cost home ownership options; all aim to help households

earning up to £60,000 p.a. to buy a home that they could not otherwise afford.

Some are targeted at first-time buyers and key workers.

Private sector shared equity or, as it is sometimes known, investor shared equity,

operates quite differently in that there is no element of taxpayer subsidy.

Instead, third party investors provide the difference between the buyer's deposit

and (typically) a 75% mortgage, in return for an equity stake in the property and

a rent. These schemes are run over 5 or 10 years (sometimes with a 'hardship'

extension), meaning that at the end of the relevant period, the owner has to buy

out the equity stake at the relevant percentage of the then market value. There

is generally no penalty on early redemption or partial buy-backs. Thus, equity

sharing can be seen as a step up to full ownership of a property.

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BMAGroup Profile

16

In the 1920s, Mr Bhuramal Agarwalla, founder of the BMA Group, had made a

foray into the obscure energy industry with a mission to assume eminence in the

coal mining business. With his vision and character, he managed to place the

business on a higher pedestal. By adhering to bi-pronged philosophy of risk-

taking and fostering an ethic-based environment, he cautiously promoted

excellence through quality to meet the expectations of both domestic and

international clients. Taking inspiration from this, the group has scaled many

heights venturing into Refractory’s, Smelting, Ferrous Alloys, and Coke is leading

by example.

In the age of Second Generation Reforms, the company has successfully passed

down its mantle to the Fourth Generation. The group has successfully fused

traditional methods with modern mantra of management to come out with flying

colours. The group has taken multifarious initiatives, some of which have already

yielded dividends. We are manufacturers and exporters of ferrous alloys,

refractory’s etc. The holistic production process combines a perfect balance

between product availability, manufacturing procedure, quality supply chain and

a geographical dispersion of marketing and operations. Over the years the BMA

Group has become a single reliable source for resources and a Group you can

count on for delivery and quality. Service to the customer goes beyond the sale

of products by providing technical advice for economic and efficient applications

and maintenance for products supplied by the group companies.

Group Companies are:

National Refractories

(Prop. Snowtex Udyog Ltd) Refractories Unit West Bengal

The Behar Potteries Ltd. Refractories Unit West Bengal

Anjanery Ferro Alloys Ltd. Ferro Alloys Unit Jharkhand

Maithan Alloys Ltd. Ferro Alloys Unit West Bengal

Maithan Smelters Ltd. Ferro Alloys Unit Meghalaya

Premium Fuels Metallurgical Coke Unit West Bengal

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BMA GROUP PROFILEBMA GROUP PROFILE

2. Ferro Alloys2. Ferro Alloys

3. Coal & Coke3. Coal & Coke

Corporate Social Responsibility should be the inherent motive of every business

house. The Group BMA takes its commitment seriously and has imbibed this

responsibility into its mission. It actively participates in community development

through three ways: philanthropy, civic leadership & public policy and grass root

efforts. The company provides generous support & leadership to a wide range of

organizations that cater to cultural, civic, environmental, health and human

services.

(Our highest quality of Refractory Products are widely

used in the industries.)

Companies under Refractories:-

National Refractories (Prop. Snowtex Udyog Ltd) - An ISO 9001:2000

company

The Behar Potteries Ltd.

(We manufacture wide range of Ferro alloys to meet the need of each buyer.)

Companies under Ferro Alloys:-

Anjaney Ferro Alloys Ltd.

Maithan Alloys Ltd.- An ISO-9001:2000 company

Maithan Smelters Ltd.

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Different ventures of BMA GroupDifferent ventures of BMA Group

1. Refractories1. Refractories

4. Steel Product4. Steel Product

5. Export and Import5. Export and Import

6. Financial Services6. Financial Services

(We produce good quality hard Coke and metallurgical Coke.)

Companies under Coal and Coke

Premium Fuels ( Prop. Snowtex Udyog Ltd.)

( Manufacturing & exporting of stainless steel & allied products that are tested to

comply with international standards.)

(Primarily engaged in import & export of products like : Alumina Silicate Bricks,

Special Refractories, Low Carbon Silico Manganese & more)

Companies under Export and Import

BMA International

Our Export and Import Items:

1. Refractory

Alumina Silicate Bricks

Insulation Bricks

Monolithics

Special Refractories

2. Ferro Alloys

High Carbon Ferro Manganese

High Carbon Ferro

Manganese(LowPhos)

Medium Carbon Ferro Manganese

Low Carbon Ferro Manganese

High Carbon Silico Manganese

Medium Carbon Silico

Manganese

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(Focused on offering diversified financial services to corporate &

individuals.)

BMA Financial Services primarily focuses on offering diversified financial planning

services to corporate & individuals. Our spectrum of services include financial

planning, advising, executing, monitoring of investments & more. With our team

of financial consultants & experts we ensure to deliver customized solution to all

our clients.

BMA Wealth Creators - The A to Z of Wealth Creation Techniques

As Wealth Creators, we work towards understanding your financial goals and risk

profile. Our expertise combined with thorough understanding of the financial

markets results in appropriate investment solutions for you.

Extending our expertise, to fulfil all your investment needs.

We offer a wide range of financial services and solutions through our varied

services.

Wealth Management Services

Investment Advisory Services

Securities Broking Equities and

Derivatives

Distribution of Financial Products

Marketing of Equity and Mutual

Fund IPO

Commodities Broking

Our expertise in each of these areas, help you achieve your financial objectives.

We provide full service functions, which include:

Planning

Advising

Executing

Monitoring your investments

Our corporate entities are represented by –

BMA Stock Broking Pvt. Ltd.

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It holds corporate membership in National Stock Exchange Ltd, Bombay Stock

Exchange Ltd. and Central Depositories Securities Ltd.

BMA Commodities Pvt. Ltd.

It holds corporate membership in commodities exchange of NCDEX and MCX. It is

also is SEBI approved AMFI registered Mutual Fund advisory and intermediary.

Time to shed your worries.

In the present day scenario, there are way too many options that can be rather

confusing. The key is to decide well. Making the correct choice will ensure the

realization of all your dreams.

With BMA, you can at least forget about your financial worries. We with the

correct knowledge of the market and years of experience behind us will help you

invest your money in the right avenues. So that you can rest assured as your

money grows.

All you have to worry about now is ways to utilize the wealth and create the

perfect picture of happiness for you and your loved ones.

21

22

Wealth Creators Corporate

Profile

Wealth Creators Corporate

Profile

A premier financial services organisation providing individual and corporate with

customized financial solutions. We work towards understanding your financial

goals and risk profile. Our expertise combined with thorough understanding of

the financial markets results in appropriate investment solutions for you. At

Wealth Creators we realize your dreams, needs, aspirations, concerns and

resources are unique. This is reflected in every move we make with and for you.

We have deep appreciation for the Value of building an everlasting relationship

with YOU. BMA Wealth Creators Pvt., Ltd. was formerly known as BMA Stock

Broking Pvt., Ltd. and changed its name in July 2007

Our financial services corporate entities are represented by

BMA WEALTH CREATORS LTD. - which holds corporate membership in

National Stock Exchange Ltd, Bombay Stock Exchange Ltd. and Central

Depositories Securities Ltd

BMA COMMODITIES PVT. LTD . - This holds corporate membership in

commodities exchange of NCDEX and MCX. It is also is SEBI approved

AMFI registered Mutual Fund advisory and intermediary.

We inherit the legacy of BMA group which has been one of the dominant entities

in Ferrous and Ferro Alloy industry in India. The BMA Group has created its niche

in by promoting successful ventures in the fields of coal mining, refractory, steel

23

CORPORATE PROFILECORPORATE PROFILE

BMA WEALTH CREATORS LIMITEDBMA WEALTH CREATORS LIMITED

and Ferro alloy. The strive to achieve excellence and dynamic growth has been

possible through optimum mix of technology, customer orientation, best

business practices, forging alliances, high quality standards and proactive

business culture. A premier financial services organisation providing individual

and corporate with customized financial solutions. Our expertise combined with

thorough understanding of the financial markets results in appropriate

investment solutions for you. Currently we've presence in 1650 location PAN

India. Presently company has 5,000 employees in all over India.

Management Team of BMA Wealth Creators Limited

Managing Director and Chief Executive

Officer

Anubhav Bhatter

Director Avinash Agarwal, Sudhanshu

Agarwal.

COO Saikat Ganguly

Head of Operations and RMS and

Director

Shiv Kumar Damani

Vice President and Head of Franchisee

Development

Asit Kumar Ghosh

MISSION - To be a premier financial supermarket providing integrated

investment services.

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MISSON & VISIONMISSON & VISION

VISION - To provide integrated financial services building investor wealth and

confidence.

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Services of BMA Wealth Creators Limited

Wealth Management Services

Investment Advisory Services

Securities Broking Equities and Derivatives

Distribution and Marketing of Equity and Mutual Fund IPO

Commodities Broking

Depository Participants

Life and General Insurance Services

Sales and Distribution of BMA Wealth CreatorsSales and Distribution of BMA Wealth Creators

Wealth Services Management

BMA Wealth Creators Pvt., Ltd. operates as a financial services organization in

India. It provides individual and corporate financial and investment solutions.

They give their customer path so that they can efficiently increase their wealth.

Expert team of BMA Wealth Creators always suggest their customer so that they

can invest their money in such a way that it will make their wealth healthier.

Investment Advisory Services

Under BMA Wealth Creators Limited, it delivers advisory services to a cross-

section of customers. The service is backed by a team of dedicated and expert

professionals with varied experience and background in handling investment

portfolios. They are continually engaged in designing the right investment

portfolio for each customer according to individual needs and budget

considerations with a comprehensive support system that focuses on trading

customers' portfolios and providing valuable inputs, monitoring and managing

the portfolio through varied technological initiatives. This is made possible by the

expertise it has gained in the business over the years. Covering the latest of

market news, trends, investment schemes and research-based opinions from

experts in various financial fields.

Securities Broking Equities and Derivatives

BMA Wealth Services Pvt. Ltd is also gives the service of Security Broking,

Equities and derivatives for their customer.

Distribution and Marketing of Equity and Mutual Fund IPO

Company also distributes different financial instruments like “Demat Account”

and also does the marketing of equity, mutual fund and IPOs for their customers.

Depository Services

26

Depository is an organisation which holds your securities in electronic (also

known as ‘book entry’) form, in the same manner as a bank holds your money.

Further, a depository also transfers your securities without actually handling

securities, in the same day as a bank transfers funds without actually handling

cash. BMA Wealth Creators Limited gives their customer depository services also.

Commodities Broking

Commodity trading is an investing strategy that involves the buying and selling

of goods that are classified as commodities. There are many similarities between

commodity trading and the trading activity involved with stocks. One key

difference has to do with the difference between what is traded. Company also

gives the services of commodity broking services for customers who want to

trade in commodity.

Insurance Services

BMA Wealth Creators Pvt. Ltd also gives the insurance services to their customer.

Company has tied-up with different insurance companies for insurance services.

Company gives Life Insurance and General Insurance both.

Equity/Share

BMA Wealth Creators deals with different equity and shares of different

companies. Total equity capital of a company is divided into equal units of small

denominations, each called a share. For example, in a company the total equity

capital of Rs 2,00,00,000 is divided into 20,00,000 units of Rs 10 each. Each such

unit of Rs 10 is called a Share. Thus, the company then is said to have 20,00,000

equity shares of Rs 10 each. The holders of such shares are members of the

company and have voting rights. Experts of the company suggest people to

invest their money in a right equity or share so that they can get good return

from that.

Debt Instrument

27

Under all these services BMA Wealth Creators deals withUnder all these services BMA Wealth Creators deals with

Company also deals with debt instrument. Debt instrument represents a contract

whereby one party lends money to another on pre-determined terms with

regards to rate and periodicity of interest, repayment of principal amount by the

borrower to the lender.

In the Indian securities markets, the term ‘bond’ is used for debt instruments

issued by the Central and State governments and public sector organizations and

the term ‘debenture’ is used for instruments issued by private corporate sector.

Derivative

Derivative is a product whose value is derived from the value of one or more

basic variables, called underlying. The underlying asset can be equity, index,

foreign exchange (forex), commodity or any other asset.

Derivative products initially emerged as hedging devices against fluctuations in

commodity prices and commodity-linked derivatives remained the sole form of

such products for almost three hundred years. The financial derivatives came

into spotlight in post-1970 period due to growing instability in the financial

markets. However, since their emergence, these products have become very

popular and by 1990s, they accounted for about two third of total transactions in

derivative products.

Commodity

A market that transacts business with commodities of all nature referred as

commodity markets. Commodity market does not necessarily require you to buy

or sell the commodities but you can even exchange them. Commodity market

works on certain principles. Firstly the trading has to be done only for standard

products. Secondly the transaction takes place through a future contract.

According to this contract the commodities will be sold or bought on a future

date. However the price at which they are sold will be the price agreed during

the contract. Similarly commodity marketing also makes use of another type of

contract called spot contract. In this contract the goods are to be transferred as

soon as the contract is made.

Mutual Fund

A Mutual Fund is a body corporate registered with SEBI (Securities Exchange

Board of India) that pools money from individuals/corporate investors and invests

the same in a variety of different financial instruments or securities such as

equity shares, Government securities, Bonds, debentures etc. Mutual funds can

28

thus be considered as financial intermediaries in the investment business that

collect funds from the public and invest on behalf of the investors. Mutual funds

issue units to the investors. The appreciation of the portfolio or securities in

which the mutual fund has invested the money leads to an appreciation in the

value of the units held by investors. The investment objectives outlined by a

Mutual Fund in its prospectus are binding on the Mutual Fund scheme. Mutual

fund is for the customers who does not have the knowledge about share or stock

market. In that case customer gives the investment amount, what they wish to

invest in share market, to the company and company invest the amount on

behalf of the customer in market. Experts of the company decides where to

invest the money for their customer

Demat Account

Company also provides their customer De mat Account. The term De mat, in

India, refers to a dematerialised account for individual Indian citizens to trade in

listed stocks or debentures. Company provides customer Demat Account facility

who wants to transact in share market. The Securities Exchange Board of India

(SEBI) requires the investor to maintain a Demat account. In a demat account

shares and securities are held in electronic form instead of taking actual

possession of certificates. A Demat Account is opened by the investor while

registering with an investment broker (or sub broker). The Demat account

number which is quoted for all transactions to enable electronic settlements of

trades to take place.

Access to the demat account requires an internet password and a transaction

password as well as initiating and confirming transfers or purchases of securities.

Purchases and sales of securities on the Demat account are automatically made

once transactions are executed and completed.

The demat account reduces brokerage charges, makes pledging/hypothecation

of shares easier, enables quick ownership of securities on settlement resulting in

increased liquidity, avoids confusion in the ownership title of securities, and

provides easy receipt of public issue allotments.

It also helps you avoid bad deliveries caused by signature mismatch, postal

delays and loss of certificates in transit. Further, it eliminates risks associated

with forgery, counterfeiting and loss due to fire, theft or mutilation. Demat

account holders can also avoid stamp duty (as against 0.5 per cent payable on

29

physical shares), avoid filling up of transfer deeds, and obtain quick receipt of

such benefits as stock splits and bonuses.

Fees Involved in Demat Account

There are four major charges usually levied on a demat account: Account

opening fee, annual maintenance fee, custodian fee and transaction fee. All the

charges vary from DP to DP.

Account-Opening Fee

Depending on the DP, there may or may not be an opening account fee. BMA

Wealth Creators and some private banks, such as ICICI Bank, HDFC Bank and UTI

Bank, do not have one. However, players such as Globe Capital, Karvy

Consultants and the State Bank of India do so. But most players levy this when

you re-open a demat account, though the Stock Holding Corporation offers a

lifetime account opening fee, which allows you to hold on to your demat account

over a long period. This fee is refundable.

Annual Maintenance Charge

Company also charges maintenance charge to maintain Demat Account with the

company. This is charges as yearly basis. This is also known as folio

maintenance charges, and is generally levied in advance.

Custodian Fee

This fee is charged monthly and depends on the number of securities

(international securities identification numbers — ISIN) held in the account. It

generally ranges between Rs 0.5 to Rs 1 per ISIN per month. DPs will not charge

custody fee for ISIN on which the companies have paid one-time custody charges

to the depository.

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Account Opening FeeAccount Opening Fee

Annual Maintenance Charge Annual Maintenance Charge

Custodian FeeCustodian Fee

Transaction FeeTransaction Fee

Transaction Fee

The transaction fee is charged for crediting/debiting securities to and from the

account on a monthly basis. The fee also differs based on the kind of transaction

(buying or selling). Some DPs charge only for debiting the securities while others

charge for both. The DPs also charge if your instruction to buy/sell fails or is

rejected. In addition, service tax is also charged by the DPs.

In addition to the other fees, the DP also charges a fee for converting the shares

from the physical to the electronic form or vice-versa. This fee varies for both

demat and remat requests. For demat, some DPs charge a flat fee per request in

addition to the variable fee per certificate, while others charge only the variable

fee.

Apart from all these charges one more charge is involved in share

trading and that is known as:-

Brokerage

Company gives the facility to their customer to sell or purchase stock and other

products of the company. For this facility given by the company they charged

some commission from the customer. This commission is generally known as

brokerage. And also company, who deals with share and all other similar

products, generally known as broking houses.

Rates comparison of BMA Wealth Creators from other companies:-

1. Brokerage Rate

BMA Wealth Creators takes the brokerage as advance for 12 months. As per the

trading doing by the customer their brokerage is being reduced from the

advance brokerage given by them. These rates are different in case of advance

brokerage chosen by the customer. BMA Wealth Creators offers flexibility of low

brokerage as your trade volumes go high to higher.

You Pay(RS.)

Variable Brokerage Time Limit.

Delivery Intraday1,000 0.40 0.04 12 Months2,000 0.30 0.03 12 Months5,000 0.25 0.025 12 Months

31

10,000 0.20 0.02 12 Months20,000 0.15 0.015 12 Months25,000 0.10 0.01 12 Months50,000 0.05 0.005 12 Months

Features:-

Flexibility to choosing slab rate as per your investment pattern.

Time valid for 12 months.

Trading allowed both in Equity and Commodity.

32

Brokerage rate of other companies:-

Broking Houses Brokerage for Delivery

Brokerage for Intraday

trading

Minimum

Monthly

Charges

SBICAP Securities 0.50% 0.10% NIL

Sharekhan 0.03% - 0.50% 0.03% - 0.10% NIL

Motilal Oswal 0.30% - 0.50% 0.03% - 0.15%

5 paisa 0.25% - 0.85% 0.07%

Angel Broking 0.50% 0.02% - 0.03%

33

ICICI direct 0.75% 0.15%

Indiabulls 0.25% - 0.50% 0.05% - 0.10%

HDFC Securities 0.50% 0.15%

UTI Securities 0.80% 0.15%

Religare 0.20% - 0.30% 0.02% - 0.03%

Reliance Money 0.01% 0.01% card system

Geogit 0.30% 0.03%

Indiainfoline 0.50% 0.10% -

34

Companies who offer variable brokerage rate, in graph representation I

have taken the lower rate.

1. Account Opening Charge

Name of the Broking House Account Opening Charge

BMA Wealth Creators NIL

Reliance Money Rs.750

Sherekhan Rs.750

India Bulls Rs.900

ICICIDirect.com Rs.750

SBI RS.500

HDFC Securities Rs.799

GEOJIT FINANCIAL SERVICES Ltd RS.650

5 Paisa Rs.500

Religare (3 Types of Account) Plan - R-ACE

35

Rs.299

Min Margin Required Rs. 5,000

Plan – R-ACE Lite

Rs. 499

Min Margin Required Rs. 5,000

Plan – R-ACE Pro

Rs. 999

Min Margin Required 10,000

Angel Broking Rs. 740

UTI Securities Rs. 499

IDBI Paisa Builder Rs. 499

India infoline Rs. 555

Kotak Securities Rs. 750

SMC Indian Rs. 499

Way 2 Wealth Rs. 350

2. Annual Maintenance Charge

Name of the Company Annual Maintenance Charge

BMA Wealth Creators 1st year NIL

36

2nd year onwards Rs. 300

Angel Broking 1st year NIL

2nd year onwards Rs. 300

Karvy Rs. 250

Geojit Rs. 300

HDFC Securities 1st year NIL

2nd year onwards Rs. 500

ICICI Direct 1st year NIL

2nd year onwards Rs. 500 (Paper

Statement) and Rs. 450 (Email

Statement)

IDBI Paisa Builder 1st year NIL

2nd year onwards Rs. 350

Kotak Securities Rs. 360

Motilal Oswal 1st year NIL

2nd year onwards Rs. 100

Reliance Money Rs. 200

Religare Rs.250

SBI Rs. 400

Sherekhan 1st year NIL

2nd year onwards Rs. 300

Ventura 1st year free

2nd year onwards Rs. 400

Distribution channel of BMA Wealth Creators:-

BMA Wealth Creators limited generally distribute their product through:-

Agents – Company reach their customer through their agents. This is one

of the most important distribution channel through that company

distribute their product to the customer.

37

Apart from age

Company also gives franchisee to distribute their product more widely. In

Bhuwaneswar in one franchisee is in Shahid Nagar and in one franchisee is

situated in Puri Road.

38

Research

Methodology

Research

Methodology

RESEARCH OBJECTIVES

1. To know the customer’s awareness about different financial

product available in the Equity market.

2. To know the type of investment carried out by customers’.

RESEARCH METHODOLGY:

Research Methodology is a very organized and systematic medium through

which a particular case or problem can be solved. It is analytical, descriptive

and quantitative research where the comparison between the different types

of investment made by customers’ in the capital market. The methods of

collecting information employed were mainly primary data collection method.

39

RESEARCH DESIGN:

The Research design of this project is descriptive in nature. The sole objective

was to know the characteristics that consumer consider while investment in

capital market. Further researcher also wants the role of influential factors in

consumer decision making process.

SAMPLING PLAN:

An integral component of a research design is sampling plan .Specifically, it

addresses three basic functions:

Whom to survey? (The Sample Unit)

How many to survey? (The sample data)

How to select them? (The sampling Procedure)

Making a census study of entire Bhubaneswar market was impossible on the

account of time and money. Hence sampling became inevitable.

The chalked out sampling plan is as follows:

Sample Unit: The consumers of middle and upper middle class.

Sample Size: 50 consumers

Sampling Procedure: Area sampling procedure was adopted in which the

researcher selected sample from different areas of Bhubaneswar.

Making an overall Bhubaneswar market was impossible for the researcher. The

Researcher took the help from the database of customers maintained by BMA

Wealth Creators Ltd.

40

Locations from where the samples were collected

Unit-1 Market

Big Bazaar Shopping Mall

Sahid Nagar

Satya Nagar

CRP Sqaure

Residential Apartments

SOURCES OF DATA:

For the research work the researcher has obtained data from two main sources.

Primary data: Structured non-disguised questionnaire, interview

Secondary data: Journals, magazines, newspaper, web sites etc.

QUESTIONNAIRE EVALUATION:

The modes of questionnaire evaluation used by the researcher are

Tabulation:

Through tabulation the responses are shown in a table against total no of

respondents.

Percentage Analysis

The Percentage analysis is a simple technique of counting no of response

and finding its % from its total.

Graphical Bar Representation of Relevant data:

41

The Responses are shown in bars plotted against the decided responding

factors.

LIMITATIONS:

More respondents did not like to spend time in filling the questionnaire as

it was immaterial to them

Some people did not know the benefits of these products.

Most of the answers of the respondents did not base on their knowledge

but just replied because to fill the questionnaire.

Many people did not respond because their hesitation about investment.

Many people are unaware about the company name.

DATA ANALYSIS AND INTERPRETATION:

What is your profession?

Service (27), Business (12), Students (11), Others ()

42

Respondents Income level per annum

<1,00,000 (11), 1,00,000-1,50,000(23), 1,50,000-3,00,000(10),

>3,00,000(6)

Family Members2(25), 3(15), Over 3(10)

43

Do you invest?Yes (41), NO (9)

In which sector you prefer to invest?Private (18), Public (32)

44

In which place you prefer to invest?

Equity(4) Mutual Fund(10) ULIP(6)

Bank Deposit(20) Post Office Savings() Bonds()

Insurance(10) Others()

If you are investing in Insurance then which in which Insurance sector you are

investing?

45

Life Insurance (33), General Insurance (17)

Since how many years you are investing?

Below 1 Year (21), 1 to 5 years (17),

5 to 7 years (3), Over 7 Years (0)

46

What do you want while investing?

Return (25), Safety (16)

If you are not investing then what is the reason?

Lack of knowledge (1), No trust over market (2), Prefer to invest in bank(6)

47

Are you aware about BMA Wealth Creators Limited in

Bhubaneswar.

Yes (23), No (27)

12. If yes then how do you come to know about the company?

Advertisement(7), News Paper(1), Friends/Relatives(15)

48

While answering the question regarding income level many people feel

uneasy.

As per the survey I got that out of 50 people 41 people are investing and 9

people are not investing.

Within this 30 people 32 says that they prefer to invest in the public sector

rather than private sector.

Out of 50 people 40% people would like to invest in Bank, 20% people

prefer to invest in Insurance and Mutual Fund, whereas 8% people prefer

to invest in equity and 12% people would like to invest in ULIP.

Out of 41 people who invest approx 61% people want good return out of

their investment and 39% people want safety about the money they have

invested

Out of 9 people who dose not invests in the market out of them 66%

people prefer to invest in bank rather than market and 23% people do no

have trust over the market and rest 11% people do not have the

knowledge about investment.

About the awareness about the company I got that out of 50 people 46%

people are aware about the company and rest people are not aware about

the company.

Make awareness camps to make people know about the various financial

plans.

Instead of just selling financial products, an effort should be taken to make

the people understand what the benefits of such an investment are.

Arrange for camps by taking appointments from the people who actually

wanted to undergo a training program on self-financial planning.

49

Findings and ConclusionFindings and Conclusion

SuggestionsSuggestions

BMA Wealth Creators has to clarify all the rule and regulation of proper handling

of eruity trading at the time of opening of account to the customers. Company has to

keep a consistency in their in rule ans regulation in trading division and if they make

any change in any rule and regulation. Company has to inform the customers in time.

Company has to give some alternate facility to those customers who have

account and they are using it, so that more and more people will involve in

it, by which these customers can pay more attention on their account.

Today every customer has less time and this facility will give enough

scope to that customer who have demat account in BMA Wealth Creators

but they are not using trading.

BMA Wealth Creators should start and conduct education program with

technical analysis. The company should start some promotional activities

for spreading the awareness in customers and many times the customers

become defaulter due to less information is given by the securities

company to the customers. At that time a negative impression of

company will goes to those customers and it hampers the customer

loyalty. BMA Wealth Creators should try to make their loyal customer

bacause loyal customer will give profit to the organization directly or

indirectly.

50

Questionnaire

Sir,

I am a student of, TRIDENT ACADEMY OF CREATIVE TECHNOLOGY,

Bhubaneswar doing a research work on the title “Customers Perception

towards Investment in Equity market with reference to BMA Wealth

Creators Ltd.” for academic purpose. Kindly fill up the following questionnaire,

which will be used only for academic purpose and will not be divulged to

anybody under any circumstances.

Thank You

Name__________________________________________ Age____________

Address ________________________________________________________

Contact Number __________________________________________________

51

1. What do you do?

Service

Business

Students

Others Please Specify_____________________

2. Annual Salary _______________

3. Family Member ______________

4. Do you invest?

Yes No

5. In which sector do you prefer to invest?

Private Public

6. In which place you prefer to invest?

Equity

Mutual Fund

ULIP

Bank Deposit

Post Office Savings

Bonds

Insurance

Others Please Specify _________________

7. If you are investing in Insurance then which in which Insurance sector you are investing?

52

Life Insurance

General Insurance

8. Since how many years you are investing

Below 1 Year

1 to 5 Year

5 to 7 Year

Over 7 Year

9. What do you want while investing?

Return

Safety

10. If you are not investing any where what is the reason?

Lack of Knowledge

No trust over market

Prefer to Invest in bank

11. Are you aware about BMA Wealth Creators in Bhubaneswar?

Yes No

12. If yes then, how do you come to know about the company?

Advertisement

Newspaper

Friends/Relatives

53

BOOKS

Financial management by D.Chandra Bose.

Financial markets & services by Gordon & Nataranjan .

Security analysis & portfolio management by S.Kelvin.

Financial institution & market by L.M BHOLE .

http://demataccount.com/fees-comparison/

http://demat.sbi.co.in/uploads/files/Revised-schedule-of-charges.pdf

http://www.tracenotes.com/reports/brokers-india.html

http://www.tracenotes.com/reports/brokers-india.html

http://www.bmawc.com/AboutUs.aspx?id=1

http://www.bmawc.com/AboutUs.aspx?id=2&opt=2

http://www.bmaind.com/group-profile.html

http://www.bmaind.com/export-import.htmlhttp://www.bmaind.com/steelproducts.html

http://www.bmaind.com/financial-services.html

http://www.flame.edu.in/pdfs/fil/presentations/FIL_Stock%20Market.pdf

54

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