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[1]

CHAPTER I

INTRODUCTION

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OBJECTIVES OF STUDY

Whenever a study is conducted, it is done on the basis of certain objectives in mind. A

successful completion of a project is based on the objective of the study that could be stated

as under:

1) To study the Comparative Analysis of Investment Options available in the Market onthe basis of customer buying preference.

2) To study the time period for which investments are generally made by investors in thestock markets.

3) To study how comfortable people are investing in stock market.4) To study the decision making criterions of those investing in stock markets.5) To determine the most preferred investment avenues of those dealing in stock

markets.

RESEARCH METHODOLOGY

Research Methodology is a systematic way to solve the research problem. It may be

understood as a science of studying how research is done scientifically. The present study

was undertaken for knowing perception of investors towards equity products. This chapter

gives us the Research Design, Sampling plan, methods of data collection and tools used for

data analysis & interpretation.

The selection of the respondents was done on the basis of convenience sampling as the

universe under the coverage area of the study was too large.

METHOD OF DATA COLLECTION

I have p repared a ques t ionnai re con ta in ing 11 ques t ions . I personal ly

contacted 100 respondents to get the questionnaires filled. All possible efforts were made

together to remove biasness.

DATA ANALYSIS & INTERPRETATION

For the purpose of analyzing, raw data was summarized into charts and the results have been

carried out. The questions, which have alternative choices, were analyzed by taking

percentages. Proper analysis of the data has been made to get proper results.

STATISTICAL TOOLS

Percentage has been used to meet the objectives of the study.

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LIMITATION

Some of the respondents were not candid enough to reveal all the requiredinformation .They might have given inflated or wrong data.

The survey was conducted in Ranchi and on convenience sampling basis. So, thiscould have brought biasness into the study.

However all the efforts were made to remove the biasness but it cannot be denied thatthere is no possibility of individual biasness on the part of respondent.

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[4]

CHAPTER II

COMPAY PROFILE

&

MY TRAINING MODULE AT

KOTAK SECURITIES LTD.

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INDUSTRY PROFILE

The Indian securities market, considered one of the most promising emerging markets, is

among the top eight markets of the world. The Stock Exchange,Mumbai, which wasestablished in 1875 as The native share and stockbrokers association (a voluntary non-

profit making association), has evolved over the years into its present status as the premier

stock exchange in the country. At present 24 stock exchanges operate all over India. These

stock exchanges provide facilities for trading securities , securities markets provides a

common platform for transfer of funds from the person who has excess funds to those who

need them . Securities market is regulated by the Securities Exchange Board of India (SEBI).

COMPONENTS OF SECURITY MARKET:

The major components of the securities market are listed below:

Securities-shares,Bonds,Debentures, Futures, Options, Mutual Fund Units Intermediaries-Brokers, Sub brokers, Custodians, Share transfer agent, Merchant

Bankers

Issuers of securities-Companies, Bodies corporate, Government, FinancialInstitutions, Mutual funds, Banks

Investors-Individuals, Companies, Mutual funds, Financial Institutions, ForeignInstitutional Investors

Market Regulators-SEBI, RBI(to some extent), Department of Companies affairsTYPES OF SECURITIES MARKET

In the contest of equity products, which this publication seeks to cover in depth, the following

markets could be defined:

Primary Market Secondary Market Derivatives Market

PRIMARY MARKET

Fresh issue of shares and other securities are affected though the primary market. It provides

issuers opportunity to issue securities, to raise resource to meet their requirements of

business. Equity issues can be affected at face value or at discount/premium. Issues at

discount are rare and almost unheard of issuers can issue the securities in domestic market

and/or international market through ADR/GDR/ECB route.

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SECONDARY MARKET

Investors can buy and sell securities in secondary market from/to other investors. The

securities are traded, cleared and settled through intermediaries as per prescribed regulatory

framework under the supervision of the exchange and oversight of SEBI. The regulatoryframework has prohibited trading of securities outside the exchanges. There are 24 exchanges

(the capital stock exchanges, the latest in the list, is yet to commence trading) today

recognized over a period of time to enable investors across the length and breadth of the

country to access the market.

DERIVATIVES MARKET

Derivatives are contracts that are based on or derived from some underlying asset, reference

rate, or index. Most common financial derivatives are: forwards, futures, options and swaps.Derivatives trading commenced in India in June 2000 after SEBI granted the final approval to

this effect in MAY 2000 for trading in index future,currently, the Indian market provides

equity derivatives of the following types:

Index futurestwo indices Stock futurestwenty nine stocks Index optionstwo indices Stock optionstwenty nine stocks

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COMPANY PROFILE

ABOUT KOTAK SECURITIES

Kotak Securities established in 1994, it is a subsidiary of Kotak Mahindra Bank, which

services more than 13 lakh customer accounts. The firm has a wide network of more

than 1330 branches, franchisees representative offices, and satellite offices across 412

cities in India and offices in New York, London, Dubai, Mauritius and Singapore.

They process more than 400000 trades a day which is much higher than some of the

renowned international brokers.

The company is a corporate member of both The Bombay Stock Exchange (BSE) and

The National Stock Exchange of India (NSE). Our operations include stock broking

services for trading in stock markets through branches & internet and distribution ofvarious financial products including investments in IPOs, Mutual Funds and Currency

Derivatives. Currently, Kotak Securities is one of the largest broking houses in India

with substantial geographical reach to Asia Pacific, Europe, Middle East and America.

Kotak Securities Limited has Rs.1,015crore of Assets Under Management(AUM) as of

31stMarch, 2013.

INNOVATIONS

Kotak Securities has been the pioneers in providing many products and services which havenow become industry standards for stock broking in India. Some of them include:

Mobile stock trading application to keep track of your investments even on the go Facility of Margin Finance to the customers for online stock trading Investing in IPOs and Mutual Funds on the phone SMS alerts before execution of depository transactions AutoInvest - Asystematic investing plan in Equities and Mutual funds Provision of margin against securities automatically against shares in your Demat

account

http://www.kotaksecurities.com/whatweoffer/mobiletrading.htmlhttp://www.kotaksecurities.com/whatweoffer/systematic-investment-plan.htmlhttp://www.kotaksecurities.com/whatweoffer/systematic-investment-plan.htmlhttp://www.kotaksecurities.com/whatweoffer/mobiletrading.html

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MY TRAINING MODULE AT KOTAK SECURITIES

SALES:

1) Different products availablea) Offline

b) Online2) Trinity A/c

OFFLINE:

In this form of trading in Kotak Securities the customer places the order by two ways:-

- The customer goes to the dealing room and asks dealers to place orders.- The customer calls the dealer, asks the share quotes and market information

and places orders.

- The terminal used by Kotak securities for share trading is ODIN- Account opening charges are Rs. 750 + initial investment amt.

ONLINE:

- It is a service provided through internet for purchase and sale of equity,derivatives and commodities.

- Clients can do self trading through internet by software provided byKotak ( KEAT PRO X)

- Clients can also trade over the phone by calling to dealer asking therates of share and other important details.

-

Kotak provides exclusive online tool to monitor what is happening inthe market and also investor can view gain/loss in real- time.

- Kotak Securities provides daily sms alerts, market pointers, periodicalresearch reports, stock recommendations etc.

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In online there are two types of accounts

Trinity a/c & Non- Trinity a/c

Trinity a/c offersKotak Mahindra saving bank account + demats a/c

+ trading a/c

Charges for opening trinity a/c isRs. 750 + initial investment

Non- trinity a/c offersdemat a/c + trading a/c

Charges for opening non- trinity a/c is Rs. 1200 + initial investment.

Documentation:

Documents required for opening offline account are:-

- 2 photos- Address proof (bank account statement )- Identity proof- PAN card- 1 cheque if it is personalize cheque , 2 cheque for not personalized

cheque or if address proof is bank account statement

Documents required for opening online account are:-

- 3 photos- Address proof- Identity proof- PAN card- 1 chequeif it is personalize cheque, 2 cheques for not

personalized cheque or if address proof is bank account

statement.

KYC:

It is required for account opening through this process the norms for opening of account is

stated and it is done to know your clients by the kotak Securities.

Standard pitch:

It refers to how sales person get more referrals through calling to their clients

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Prospecting:

Sales people generates a database from where they get their prospects

Taking appointment:

After the prospects are generated they call to them and take appointment.

Visit:

They visit to the prospects after taking the appointment and explain about the products and

investments in various products and features of investment into the market.

Follow ups:

After the a/c is opened by the client sales people continue to be connected and provide new

information related to existing products or new products.

KRISP leads and updating

It is the Kotak HR Information System Portal and all the leads and

Itsupdation is done with the portal. Through sales LMSfast self

Lead access, fast lead assess by follow up date, lead dashboard,

Viewleads; add leads and lead search are provided by KRISP.

Contract notes:

It is the note which gives the details of the trading with all thebrokerage and taxes.

Pre and post confirmation:Confirmation done by the dealer during the call of trading and after

the days trading session is over dealers call the clients and confirm about the transaction .

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[11]

CHAPTER III

DATA ANALYSIS AND INTERPRETATION

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DATA ANALYSIS AND INTERPRETATION

According to the survey conducted it has been seen that 15% of investors are female and 85%

of the investors are male.

So still in India maximum males who earn are interested in equity products on the other hand

female are now getting awareness about these products and their interest towards equity is

increasing.

85%

15%

Investor on the basis of sex

male female

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We can see that the young generation is more influenced of equity products and prefer

investing in equity market as 43 % of investors age range from 20-30 yrs, 30% of investors

are within the age group of 30-40 yrs, 20% of them are in 40-50 age group and only 7 % are

in 50-60 age group which means older people are less awareness about the equity or they

dont want to invest in risky instrument like shares.

43%

30%

20%

7%

investor on the basis of age

20-30 30-40 40-50 50-60

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Those who invest in equity are majorly from the service sector ( 78%) which shows their

hunger for earning and high return whereas 16% of investor are from business sector and 6%

of them where teachers who have investment in equity products.

As per survey done 30% of investors have their bank a/c in SBI. 20% of investors have in

other banks 14% of them have a/c in ICICI and only 10% have their bank a/c in HDFC bank

which shows that still investor believe that public sector banks are better option for keeping

their money safe.

16%

78%

6%

investors from various sectors

business service teacher

30%

14%

10%

26%

20%

In which bank do you have your

account?

Sbi icici hdfc kotak mahindra bank others

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As per survey done 42% of respondent having Demat a/c and 58% of the respondent donot have

demat a/c.

As per data collected people those who are investor they invest as 65% of them invest their

below 20% of income in investment products , 27% of investors invest 20-30% of their

income , 8% of investor invest below 30-40% of their income and no one such investors who

invest 40% and above of their income as investment.

42%

58%

Do you have demat a/c?

yes no

65%

27%

8%

0%

How much % of your income you

invest?

40%

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Investors annual income are as : 15% of investors have their annual income within the range

of less than 2 lakhs , 35% of them have annual income of 2-5 lakhs , 41% of investors have

annual income 5-10 lakhs and only 9 % of investor have annual income of above 10 lakhs. It

has been observed that investors falling in high range of annual income invest more % of

their income as investment.

84% of investor have maintained portfolio of their investment whereas on the other hand 16%

of investor doesnt have anyportfolio.

15%

35%41%

9%

what is your annual income?

10 lakh

84%

16%

Do you have your portfolio forinvestment?

yes no

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43% of the respondents know about all financial instrument,19% of respondent know only

about fixed deposit,18% of respondents know about insurance only,13% of respondents know

about mutual fund,3% respondent knowing about govt. securities, only 2% respondents know

about real estate and 1% respondent know about commodities and 1% respondents know

bond/ipo also.

13% 1%

18%

19%3%

2%1%

43%

Do you know about the following financial

instrument?

mutual fund bond/ipo insurance fixed deposit

govt. securities real estate commodities above all

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On the basis of survey 46% of the respondent get information regarding finanancial

instruments from their relatives,22% respondents from magazines/newspaper,30% of

respondents from advertisement and 2% from company sales force.

30%

2%46%

22%

How do you get information

regarding these financial instuments?

advertisement company sales force

friends/relatives magazines/newspaper

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As per the survey respondents most prefer to invest in bank fixed deposit , insurance,equity

market,mutual fund,real estate,commodities and debt market respectivily.

0

10

20

30

40

50

60

70

80

90

100

5

4

3

2

1

Ratings of Investment options as per the

customer's preference

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Now purpose behind investment in equity are as follows 56% of investor invest for return

from equity , 9% invest for saving tax , 3% for liquidity, 11-11% for regular income flow

and safety and 11% respondents for future risk. So the major purpose behind investment in

equity is return

40% of respondents invest in any financial instrument on their past performance,32% on the

basis of fundamental and technical analysis,12% respondent invest as per their fund

manager,10% repondent invest on the basis of portfolio and 6% respondents invest as permarket sentiment.

56%9%

3%

11%

11%10%

what are the purpose while investing

in any financial instruments?

return(capital appreciation) tax-saving

liquidity regular income flow

safety risk

40%

10%12%

32%

6%

on what basis you will invest in any

particular financial instrument?

past performance portfolio

fund manger fundamental/technical analysis

market senti ment

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41% of respondents invest with the help of broker/sub brokers.44% of respondents invest

their own and 15% of the respondents invest their money with the help of banks.

As per survey 52% respondents invest for 6 months-1year, 27% invest for 1-3yrs,19% of

respondents invest their amount for more than 3 yrs and only 2% of respondents invest their

amount for less than 6 months.

44%

41%

15%

How do you invest your money in any

financial instrument?

yourself broker/sub-broker through banks

2%

52%27%

19%

How long you prefer to keep yourmoney in any financial instrument?

3 yrs

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So from survey it has been observed that at Ranchi investors have their trading a/c with: 51%

of investors have their trading a/c with Kotak Securities, 14% have trading a/c with Religare

and 13% of investors have trading a/c with icici direct,10% investors have trading a/c in

karvy and 12% trading a/c in others(indiabulls,skpsecurities,hdfcsecurities,share khan). So

can be observed that most of the market share in trading business is with Kotak Securities

because of its good services towards investors

43% of respondents would like to trade in equity,40% of the respondents trade in fixed

deposits,10% of respondents trade in derivatives and 7% of the respondents would like to

trade in commodities.

2% 10%

51%13%

5%

4%14% 1%

if you select a broking house then

which would you select?

share khan karvy koatak securities

icici direct Indiabulls skp securities

religare hdfc securities

43%

10%7%

40%

which of these would you like to be

trading in?

equity derivatives commodities fixed deposits/bonds

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.

Expected rate of return from equity that is preferred by investors are as follows : 80% of

investors have expectation of return within 10-20% , 16% of them want below 20-30% as rate

of return and 3% of investors have expectation for high return which is 50% and above.

80%

16%

1% 3%

How much return you expect from

any financial instrument?

10-20% 20-30% 30-50% >50%

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COMPARISION BETWEEN DIFFERENT BROKING FIRMS

Kotak securities

ltd.

ICICI direct Religare Nalodia

Brokerage

Intraday 0.05% 0.05% 0.04% 0.05%

Delivery 0.05% 0.75% 0.40% 0.50%

Future option 0.05% 0.05% 0.40% 0.05%

Brokerage plans Available Available Available Available

Exchanges Nse/bse/f&o in

single platform

Available Available Available

Minimum

brokerage

1 paisa/scrip 10 paisa/scrip 1 paisa/scrip Rs. 23

paisa/scrip

A/c opening

charges

Rs.750 Rs.975 Rs.500 Stamp paper

charges

Live quotes Available Html

(refresh)/Ats-

rs. 5

Available Available

Research report Available Weekly picks Available Available

commodities online online online Offline

Online ipo Available Available Available Available

Software Yes, keat x pro No Yes, race lite

& race pro

Yes, trade

tiger

Online fund trade Available Available Available AvailableExposure

Intraday 5-6 times 8-15times 6 times 4-8 times

Delivery 1 times 1 times 1 times 4-8 times

Transfer banks Multiple

banks(kotak,hdfc,ic

ici,sbi etc.)

Products modules Online offline single Online offline Single

Amc charges Rs.360 Rs.500 Rs.250(waivedfor 1 year)

Rs. 300

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CHAPTER IVCONCLUSIONS

&

RECOMENDATIONS

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CONCLUSIONS

In a nation with population of more than 1.2 billion, only a handful of them invest in

stock markets. It is a place for all those who dream of a better, financially comfortabletomorrow as stock markets are obviously the perfect place to invest-especially when stock

markets can make them considerably rich in a short span of time, provided they play their

cards right. Therefore, stock markets is all about taking right decision at the right time in the

light of all the information available and keeping a close watch on various factors affecting

the stock markets. In Kotak Securities Ltd, I was able to learn their practical World of the

stock market. The market risk involved in share trading. The customers action when the

market price fluctuates. Stock market or capital market provides the industry with a lot of

capital needed by the industry, which leads to the growth of the industry and

economy as a whole. Hence the stock market plays animportant role in the development ofthe industry.As more and more people are attracted towards share market because of the

returns they get, stock broking is growing dayby day.This study aimed to know the

perception of investors towards equity products in RANCHI..The study revealed that most of

the people dealing in stock markets are investors as against traders. This signifies that stock

markets, despite of its risky nature is a good investment avenue for investors who are

generally looking for short to medium term investment. The study was also aimed at finding

out the returns that people expect out of their funds invested in stock markets and most of the

answers ranged between 10%-20% which is a sheer sign of optimism among investors.The

study also made it clear that most people still are not much risk takers when it comes to

investing most part of their savings. They prefer to invest in one of the safest

investmentinstrument called fixed deposits, PPF, Mutual funds, and insurance.

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RECOMMENDATIONS

Investors should undertake an analysis before investing into the stock market, asmost of the investors do not undertake any study before into a particular stock.

Before making an investment or trade on particular script the in-depth analysisof that script is very important to yield more on our investment and to minimize the

amount of risk involved.

Company should create the awareness about investment insecurities among theinvestors. They should visit the general public, businessmen, government offices and

other work places and guide them about the stock market. This will help thecompany to large customer base.

Conduct seminars, workshops on capital markets, so that customers will come toknow about the risk and return involved in investing equity market.

For attracting the new customers it should increase the number of sales executives. The company has to provide proper training to new investors to avoid losses. New

customers may not is having the sufficient knowledge of the basic concept.

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SURVEY ON KOTAK SECURITIES

Hello,My name is RAHUL RANJANand I am from Institute of Management and Information Science

(IMIS),Bhubaneswar. This is a humble request from my side to fill up this questionnaire with respect

to a survey on KOTAK SECURITIES,RANCHI. This survey is done for a research project in our college

and privacy of your personal information will be maintained. Please do the needful, it will not take

more than 10 minutes. Thanking you for your co-operation.

Name:

Age:

Gender: _ Male _ Female

Nationality: Marital Status: Married Unmarried

Contact No. : Occupation:

Email-Id:

Q 1) In which bank do you have your account?

a) SBI b) ICICI c) HDFC d) Kotak Mahindra Bank e) OthersQ 2) Do you have DEMAT A/C or TRADING A/C ?

a) Yes b) NoQ 3) How much % of your income you invest?

a) Below 20 % b) 2030 % c) 3040 % d) 40 % and above

Q 4) Do you have your portfolio for investment?

a) Yes b) NO

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Q5) Do you know about the following Financial Instrument?

a) Mutual Fund b) Equity market

c) Insurance d) Fixed Deposit

e) Govt. Securities f) Real estate

g) Commodities

Q6)How do you get information regarding these Financial Instruments?

a) Advertisement

b) Company Sales force

c) Friends/Relatives

d) Magazines/Newspaper

Q7)What are the purpose which you consider while investing in any Financial Instrument?

a) Return (capital appreciation)

b) Tax-saving

c) Liquidity

d) Regular Income Flow

e) Safety

f) Risk

Q8)How do you invest your money in any Financial Instrument?

a) Yourself

b) Broker/Sub-broker

C) Trough Banks

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Q9)How long you prefer to keep your money in any Financial Instrument?

a) >6 month

b) 1year-2 Year

c) 3 year-4 year

Q10)If you select a broker or agent then which broker company would you select?

a) Share Khan b) Karvy

c) Kotak Securities d) ICICI Direct

e) Indiabulls f) SKP Securities

g) Religare h) HDFC Securities

Q11) How much return you expect from any Financial Instrument?

a) 10-20% b) 20-30%

c) 30-50% d) > 50%

ANY SUGGESSION:

.

THANK YOU

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Bibliography

Bibliography

BOOKS REFERED:RESEARCH METHODOLOGY BY DIPAK KUMAR BHATTACHARYYA

WEBSITIES:

WWW.NSE.COM

WWW.BSE.COM

WWW.MONEYCONTROL.COM

WWW.BLOOMBERG.COM

WWW.KOTAKSECURITIES.COM

WWW.GOOGLE.COM

http://www.nse.com/http://www.nse.com/http://www.bse.com/http://www.bse.com/http://www.moneycontrol.com/http://www.moneycontrol.com/http://www.bloomberg.com/http://www.bloomberg.com/http://www.kotaksecurities.com/http://www.kotaksecurities.com/http://www.google.com/http://www.google.com/http://www.google.com/http://www.kotaksecurities.com/http://www.bloomberg.com/http://www.moneycontrol.com/http://www.bse.com/http://www.nse.com/