SUMMER INTERNSHIP PROGRAM

PROJET REPORT

ON

“FULLERTON SCURITIES

&

WEALTH ADVISORS LIMITED”

PROJECT REPORT SUBMITTED IN PARTIAL

FULFILLMENT OF MBA DEGREE

PROJCT GUIDE: KAPIL JOSHI

Submitted by: JIMISH THAKKAR

Roll no: 107850592031

Acadmy Year: - 2010-2012

PREFACE

One cannot swim only by reading the book on swimming. It must

require practice. Theory enables a person to think but theoretical knowledge

is only a half way in the overall development of an individual. Theory has to

be supported by practical understanding of things. By undertaking this

project I have tried to correlate our learning‟s in the college books to

undertake practical work.

When every organization ventures out to make its mark in the

corporate world, a refined mantra which dictates is, 'Know thy customer '.

Culmination to success summits materializes when this concept has been

assimilated in the veins of its philosophy and valuable human resources.

Indian Trading industry is an exemplary icon to today's aspiring industries,

which proves that in today's tough competitive times it is the customer

satisfaction, which speaks for every industry.

As a part of my summer internship I did a project to understand and

find out the current scenario of fullerton securities in the financial market.

During the course of project I conducted a market survey to check the

response of Fullerton‟s customers on its services. The results of the survey

have been summed up in details inside. Here, my sincere efforts have been

directed towards finding the customer satisfaction for Fullerton security .

I wish that the findings of my project would help Fullerton security to

understand the customer satisfaction level within limitations of my study and

take necessary action to implement the needed steps for customer delight.

Acknowledgment

I have to feel very proud to say that ; theory and practical are essential and

complimentary to each other. I am indebted and thanks full for the assistance

received from various individuals in marketing this project success. I found

a no words those who my gratitude to words those who ware constantly

involved with me throughout my tenure in Fullerton Securities &wealth

advisors limited

I would you like to great thanks to “Mr. Kumar Kinsuk”. Who is

the head person of the department. He gave me great opportunities in this

company for work as a marketing officer .

I also heartily great thanks to “Mr.Rahul Shinghvi”,

“Mr.Kapil Joshi” who supported me and always help me in work.

I also thanks to”Mr.Kartik Sheth, Mr.Umer Rangoonvala”,&

“Mr.Dinesh Shilpakar” and other staff member who always encourage me

and help me.

Now I have to great experience how to work in corporate world so that„s

why I am really thanks for that they gave me chance to work with us

JIMISH THAKKAR

DECLARATION

We hereby declare that the Summer Project titled “CURRENT SCENARIO OF

BROOKING BUSINESS & INVESTMENT MANAGEMENT” is my original work

and has not been published elsewhere. This has been undertaken for the

purpose of partial fulfillment of Gujarat Technological University

requirements for the award of the Degree of Master of Business

Administration.

Jimish Thakkar

Date:-

Place :

Executive summery

The primary aim of my project is to study the One the parameter of

economic development is intensive growth of Indian stock market after

2004. The stock market is reaching at new height. It is flooded with

investment for FIIS. which is resulting into more jobs with good pay scale.

The overall purchasing power has also increased. Domestic financial system

is also becoming more and more developed as more facilities in stock

market is provided as internet trading, offline trading etc.

So as the competition increase and new product are launched Indian

customer is having sufficient choice between different avenues which

provide market linked return , so Indian investor are enabled with various

option to suit their financial goals and tax planning requirement.

To fulfill the primary aim of the project. I have studied that factor which are

supporting to the growth of the financial planning in mutual fund, IPO, share

market

INDEX

CH CONTENT PAGE

NO.

PREFACE

ACKNOWLEDGMENT

EXECUTIVE SUMMARY

1 HISTORY OF STOCK MARKET

2 COMPANY PROFILE

INTRODUCTION

BOARD OF DIRECTOR

VISION&MISSION

USE OF TECHNOLOGY

3 COMPANY BUSINESS

BROKING

MUTAL FUND

FIXED DEPOSITS

INSURANCE

OTHER PRODUCTS

4. FINANCIAL PLANNING

SCOPE OF FINANCIAL PLANNING

PROCESS OF FINANCIAL PLANNING

5 RESEARCH METHODOLOGY

6 RECOMMENDATION & SUGGESTIONS

6 RECOMMENDATION & SUGGESTIONS

7 SWOT ANALYSYS

8 BIBLIOGRAPHY& ANNEXURE

CHAPTER: 1

1. NATIONAL STOCK EXCHANGE (NSE)

2. BOMBAY STOCK EXCHANGE (BSE)

3. DOMESTICK STOCK EXCHANGE

4. TYPE OF GROUP IN MARKET

HISTROY OF INDIAN STOCK MARKET:

Indian Stock Markets are one of the oldest in Asia. Its history dates back

to nearly 200 years ago. The earliest records of security dealings in India are

meager and obscure.

1850 – Shares of banks and securities of East India Company traded in

Mumbai under a sprawling banyan tree in front of Town Hall,

which is now in the Horniman Circle Park.

1875 – Brokers organized an association known as the Native Share

Brokers Association, and the country‟s first stock exchange the Bombay Stock

Exchange (BSE), set up in Mumbai with 318 members. The membership fee

gradually increased from Re 1 in 1887 to Rs 1,000 in 1896, and Rs 48,000 in

1920.00

1956 – Securities Contract Regulation Act passed

1957 – The BSE and eight other stock exchanges registered under the

Securities Trading Contract Act.

1982 – The BSE classifies scripts into Group A for carry forward, and

Group B for cash transactions.

1986 – The BSE 30-share Sensitivity Index (Sensex) compiled; updated

every two minutes.

1987 – Stock Holding Corporation of India set up.

1992 – Ordinance promulgated for granting statutory powers to the SEBI.

The Over-The-Counter Exchange of India begins operations. The National Stock

Exchange incorporated. The new 9,000-sq. ft ring in the rotunda of the new annexe to

Jeejeebhoy Towers inaugurated.

1995 – The BSE computerizes its trading operations, signaling the end of 120

years of floor-trading with 1994 – The NSE‟s debt segment begins operations on June 30;

and the capital market segment open out-cry system of share-trading and the beginning of

screen-based trading on the BSE.

1996 – NSE 50 index launched April 22. NSDL set up as the first depository in

India, and the NSE commences trading in dematerialized securities on December

26.

2000 – The SEBI approves the report on net trading brought out by the SEBI

committee on Net based trading and services. Pursuant to the circular, stock exchanges

are required to give permission to members to start Net-based trading after ensuring

fulfillment of the minimum conditions. The NSE is the first exchange to grant provisional

permission to Cochin-based Geojit Securities to commence Net-based trading.

1. NSE (National Stock Exchange)

While India has had a long history of securities trading, the markets have

not always kept pace with the emerging trends and requirements for this industry

to reach its full potential. Particular issues of concern in the securities industry

have been lack transparency, lack of trading facilities which are fair and

accessible to all, undercapitalized trading members, dated procedures and

practices and long and uncertain settlement cycles.

NSE emerged as an endeavor by some of the institutional investors within

the country to address these issues, and to break the monopoly which was enjoyed

by BSE brokers. NSE incorporated in 1992 was given recognition as a stock

exchange in April 1993 and started operation in June 1994.

Objective Of NSE:

To establish a nationwide trading facility for equities, debt instruments

and hybrids.

To ensure equal access to investors all over the country through an

appropriate communication network.

To provide fair, efficient and transparent securities market to investors

using electronic trading systems.

To enable shorter settlement cycles and book entry settlement system.

To meet the current industrial standards of securities market.

The trading system of the NSE, known as the NEAT (National Exchange for

Automated Trading), is a fully automated screen-based trading system that

enables members from across the country to trade simultaneously with enormous

ease and efficiency. The NSE has set-up facilities which serve as a model for the

securities industry in terms of trading systems, practices and procedures.

Securities traded on the NSE provide a trading platform for all types of

securities – equity and debt, corporate and government and derivatives. The

exchange provided products in 3 different segments : Wholesale Debt Market

(WDM), Capital Market (CM) and in Futures and Options (F&O) segment and

the products range from equities, fixed income securities, futures and options on

indices, stocks and interest rates.

The national stock index stock exchange index is known as “NIFTY”.

2.BSE (Bombay Stock Exchange):

The roots of the stock exchange, Mumbai can be traced back to 1875, when the Share and

Stockbrokers Association (non-profit organization) was established. BSE is the oldest

stock exchange in Asia and the most important stock exchange in Indian capital market.

It is situated at DALAL street in Mumbai.

The index of Bombay stock exchange is known as “SENSEX” i.e. sensitive index. It is

first compiled in 1986 as market capitalization weighted index, which include 30

component stocks representing a sample of large, well established and financial sound

companies. The index is widely used to measure the performance of Indian stock market.

In May 1995, the BSE took a major step when it started order-cum-quote driven

electronic trading for all the listed securities. The BOLT, the BSE Online Trading System

increased market transparency, liquidity and elimination of mismatches.

3.Domestic Stock Exchanges:

In the year 1956, the government came out with a comprehensive legislation called the

„Securities Contract (Regulation) Act to regulate the functioning of stock exchanges. The

legislation made it compulsory on the part of the stock exchanges to secure recognition

from the Central Government. More stock exchanges were recognized subsequently. At

present there are 23 stock exchanges in India including the OCTEI and NSE. The

recognition accorded to a stock exchange is normally valid for a period of 5 years or a

shorter as prescribed.

The names of these stock exchanges with their geographical location, and the date of

receiving government recognition are given in the following table:

Sr. No.

Name of exchange and Location

Date of initial

recognition

1. The Stock Exchange, Mumbai. 31-03-1857

2. The Ahmedabad Stock Exchange Association

Ltd.

16-09-1957

3. The Calcutta Stock Exchange Ltd., Calcutta 10-10-1957

4. Madras Stock Exchange Ltd. Chennai 15-10-1957

5. The Delhi Stock Exchange Association Ltd.,

New Delhi

9-12-1957

6. The Hyderabad Stock Exchange, Hyderabad. 29-09-1958

7. Madhya Pradesh Stock Exchange, Indore 24-12-1958

8. Bangalore Stock Exchange Ltd., Bangalore 16-02-1963

9. Cochin Stock Exchange ltd., Ernakulum, Cochin 10-05-1979

10. The Uttar Pradesh Stock Exchange Asso. Ltd.,

Kanpur

03-06-1982

11. Pune Stock Exchange Ltd., Pune 02-09-1982

12. Ludhiana Stock Exchange Ltd., Ludhiana 29-04-1983

13. The Gauhati Stock Exchange Ltd., Gauhati 01-05-1984

14. Kanara Stock Exchange Ltd., Mangalore 09-09-1985

15. The Magadh Stock Exchange Ltd., Patna 11-12-1980

16. Jaipur Stock Exchange ltd., Jaipur 09-01-1989

17. Bhubaneshwar Stock Exchange Asso. Ltd.,

Bhubaneshwar.

05-06-1989

18. Saurashtra Kutch Stock Exchange Ltd., Rajkot 10-07-1989

19. The Vadodara Stock Exchange LTd., Baroda. 05-01-1990

20. The Coimbatore Stock Exchange Ltd.,

Coimbatore

18-09-1991

21. The Meerut Stock Exchange Ltd., Meerut 20-09-1991

22. National Stock Exchange 26-04-1993

4.Types of groups in stock market:

A group:

Its share capital is more than 100 crores. It is known as Blue chip

companies.

B1,B2 group:

Very popular company who‟s trading is possible in any situation of the

market. Estimably 1000 companies.

T group:

It includes companies whose trading is on T to T basis.

TS group:

Trading of these companies is not possible on same day.

S group:

Trading of these companies can possible on same day.

Z group:

It include companies which have failed to comply with listing

requirements and/or failed to resolve investors companies or have not made the

required arrangements with both the depositories i.e. NSDL and CDSL.

CHAPTER. 2

INTRODUCTION OF COMPANY

BOARD OF DIROCTOR

VISION & MISON

USE OF TECNOLOGY

KEY VALUE DIFFERETIATION

INTRODUCTION OF COMPANY

Fullerton securities company is a multinational company which is

established in singapore.now this company also working in india during

2002. Fullerton securities & wealth advisors limited is a subsidiary of

fullerton finanancial holding,an asian financial institution with investments

In banks and finance companies in emerging markets including

india,indonesia,china, and Uae.

In india there are so many branches which is

ahmedabad,banglore,chandigarh,gurgaon,hyderabad,jaipur,kolkata,ludhiana,

and mumbai.

As we all know that security company has two types ie. corporate entity

and broking company but fullerton securities is corporate entity which is

SEBI regulated

Fullerton Financial Holdings Pte. Ltd. invests in financial institutions in

emerging markets, bringing an operational perspective to all investment

decisions.

As on 31st December, 2007, the total assets of Fullerton Financial Holdings

Pte. Ltd. stood at $59.7 billion and its portfolio comprised investments in 15

different financial institutions.

Fullerton Financial Holdings Pte. Ltd. supervises and influences its banks to

achieve the right risk-reward balance. It seeks to create shareholder value by

differentiating through great people, disciplined development and execution

of unique business models.

Primarily, it focuses on both Business banking and Consumer

banking

Business banking:

Fullerton Financial Holdings Pte. Ltd. focuses on the

Commercial, SME and Self-employed mass market

segments. On the other hand, it focuses on the Mass affluent

and Mass salaried segments

Consumer banking:

Fullerton Financial Holdings Pte. Ltd. is a wholly owned

subsidiary of Temasek Holdings, an Asia investment

house, headquartered in Singapore, focused on creating and

maximizing long-term shareholder value as an active

investor and shareholder of successful enterprises.

BOARD OF DIRECTOR

DR. Richard Hu

Chairman.

Mr.Peter Seah

Deputy Chairman.

Mr. Ng Kee Choe

Director.

.

Mr.Ernest Wong

Director

Mr. Francis Rozario,

Executive Director and CEO.

Pallav Sinha,

President & Chief Executive officer.

Ashok Mathur,

Regional Head South.

Ashwinder Raj Singh,

Regional Head North & Central.

Punit Gupta,

Regional Head Weast.

100%owned

100%owned

About Fullerton

Temasek holdings is an Asian investment house managing a portfolio

of over s$185 billion or us$134 guided by an Independent board, they

operate autonomously on commercial principle to maximize long term

shareholder retunes. Fullerton is the banking subsidiary of temasek.

Rated AAA/Aaa by stand and Poor‟s and Moody‟s

respectively

Diversified portfolio is an wide range of industries

telecommunication &media, singtel, Bharti Airtel, Global

crossing

Financial services: DBS, Standerd charted bank, Merrill

Lynch, Barclays,

Real Estate: Capital Land, Maple tree

Transportation & Logistics – Singapore Airlines, Neptune

orient lines, PSA

Energi&Resoures- Singapore Power, Senoko Power,

Powerseray

Infrastructure, Industrial&Engineering- Keppel Corporation

sembcorp

Technology-Chartered semiconductor, statschipPAC

Respectable returns to shareholder over last 34 year

Total shareholder retunes of more then 18% per annum

100% owned by the ministry of finance of Singapore

Philosophy: Baat Faayde Ki

Company Vision & Mission

Company Vision

Enabling Success,

Enriching Lives

Company Mission

To create superior long-term shareholder

value in financial sectors across Emerging

Markets

• Organic Growth

• Acquire and Transform

• Improve Productivity

• Optimize Capital

• Risk-Reward Balance

Our Business Philosophy

Ethical Practices & Transparency In All Our Dealings

Customers Interest Above Our Own

Always Deliver What We Promise

Effective Cost Management.

Our Quality Assurance Policy

We are committed to being the Leader in providing World Class Products & Services

which exceed the expectations of our customers achieved by teamwork and a process of

continuous improvement

OUR MOTTO

Our motto is to make our customer smile - To have complete harmony between Quality-

in-Process and continuous improvement to deliver exceptional service that will delight

our Customers and Clients.

CRM POLICY

Customer is King

“A Customer is the most Important Visitor on Our Premises

He is not Dependant on us but

we are dependant on him

He is not an Interruption in our work,

but is the Purpose of it

We are not doing him a favour by serving He is doing us a favour by giving us an

opportunity to do so”

- Mahatma Gandhi

Use of Technology in Company

Electronic Tools:

PC

Laptops

Voice / Telephony

Television

Network &Connectivity:

WAN

LAN

Routers / Switches

Infrastructure:

• Data Canter

• Servers

• Remote Server Management

Call Canter:

• Contact Canter

• CTI Integration

• IVR

Capital Market Applications:

• Front-End

• Back-Office

• Exchange Interfaces

Oracle Business Applications:

• CRM

• Sales Management

• GL

Wealth Management & Portfolio Aggregation:

• Mutual Funds

• Portfolio Aggregation

• Document Management

Delivery Channels – Web, SMS:

• Internet

• SMS

• Emails

• Analytics

Fullerton Financial Holdings - Key Value Differentiation

Great Leadership

– Passionate, Balanced, Disciplined

Customer-centric Business Models

– Relationship v/s Product Positioning

Deeply Embedded in each Market & chosen Segment

– High Market share – Top 3

Leader in Commercial / SME, Mass Consumer &

Mass Self-employed segments

Enabling management model and culture

Empowerment within defined boundaries

Embed the right values & behavior across the organization

COMPANY BUSINESS

PRODUCTS:

CAPITAL MARKET:

Equities

INVESTMENTS:

Mutual funds

Fixed deposits

Bonds & Debentures

PROTECTION(Insurance)

Life insurance

General insurance

OTHER PRODUCTS:

Margin funding

Real estate

[A] BROKING

FREEDOM ACCOUNT

It is also called „demate account‟ for which our company takes the charges

of Rs 1995/- and no ammount is refundable.after opening this account customer

gets the facility of free brokerage up to trading of 500,000/- in delivery or

50,00.000/- in intraday during 6 months.

What Does Equity Market Mean?

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

over-the-counter markets. It is 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.

What is Derivative Market Mean ?

The Derivatives Market is meant as the market where exchange of derivatives takes

place. Derivatives are one type of securities whose price is derived from the underlying

assets. And value of these derivatives is determined by the fluctuations in the underlying

assets. These underlying assets are most commonly stocks, bonds, currencies, interest

rates, commodities and market indices. As Derivatives are merely contracts between two

or more parties, anything like weather data or amount of raincan be used as underlying

assets. The Derivatives can be classified as Future Contracts, Forward Contracts,

Options, Swaps and Credit Derivatives.

Types of Derivative Market

The Derivative Market can be classified as Exchange Traded Derivatives Market and

Over the Counter Derivative Market.

Exchange Traded Derivatives are those derivatives which are traded through specialized

derivative exchanges

Over the Counter Derivatives are those which are privately traded between two parties

and involves no exchange or intermediary. Swaps, Options and Forward Contracts are

traded in Over the Counter Derivatives Market or OTC market.

The main participants of OTC market are the Investment Banks, Commercial Banks,

Govt. Sponsored Enterprises and Hedge Funds. The investment banks markets the

derivatives through traders to the clients like hedge funds and the rest.

There are two type of trading ;

Postpaid trading

Prepaid trading

These are the prepaid charges of fullerton securities ……..

What is E-Broking?

E-broking is an Internet enabled system that allows the user to buy and sell shares

on the exchange directly using a PC and a modem. You can log into an E-Broking site

like 5paisa.com, and execute trades on the exchange. In India, the National Stock

Exchange (NSE) allows E-Broking. The Stock Exchange, Mumbai (BSE) will allow

this shortly

SEBI, established in 1988 and became a fully autonomous body by the year 1992

with defined responsibilities to cover both development & regulation of the market.

A Board by the name of the Securities and Exchange Board of India (SEBI) was

constituted under the SEBI Act to administer its provisions in 1992 with one

chairman and five members.

FULLERTON PROVIDE MEMBERSHIP CARD LIKE BELOW

SILVER CARD

Annual fees 999

Free brokerage for turnover up to 500000

100000 personal accident cover free

GOLD CARD

Annual fees 2799

Free brokerage up to 750000

100000 personal accident cover

100000critical illness cover

PLATINUM CARD

Annual fees3999

1000000free brokerage

200000accident cover

200000 critical illness cover

[B] 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 then invested in shares, debentures

and other securities. The income earned through these investments and the capital

appreciations realized are shared by its unit holders in proportion to the number of units

owned by them.

The flow chart below describes broadly the working of a mutual fund. It simply shows

the cyclic flow of funds and how the mutual fund is working.

There are two approaches for investing in Mutual Fund i.e. Lump sum and SIP

(Systematic Investment Plan)

MUTUAL FUND STRUCTURE

Fund

ddd

Hous

e

Pools

Money with

Fund

Managers

Invest in

Passed back

to

Investor

Returns =

Securities Generates

SPONSOR TRUSTEE

OPERATIONS AMC

MKT./ SALES

DISTRIBUTER

MKT./ SALES

FUND MANAGER

MUTUAL FUND

SCHEMES

INVESTORS

SEBI

The Structure Consists

The structure of mutual funds in India is governed by the SEBI Regulations, 1996. These

regulations make it mandatory for mutual funds to have a 3-tier structure of Sponsors-

Trustee-AMC (Asset Management Company).

The Sponsor is the promoter of mutual fund, and appoints the Trustee. The Trustees are

responsible to the investors in the mutual funds, and appoint the AMC for managing the

investment portfolio. The AMC is the business face of the mutual funds, as it manages

all the affairs of mutual funds. The mutual funds and AMC have to be registered by the

SEBI.

Sponsor

Sponsor is the person who acting alone or in combination with another body corporate

establishes a mutual fund. Sponsor must contribute at least 40% of the net worth of the

Investment Managed and meet the eligibility criteria prescribed under the Securities and

Exchange Board of India (Mutual Funds) Regulations, 1996.The Sponsor is not

responsible or liable for any loss or shortfall resulting from the operation of the Schemes

beyond the initial contribution made by it towards setting up of the Mutual Fund

Trust

The Mutual Fund is constituted as a trust in accordance with the provisions of the Indian

Trusts Act, 1882 by the Sponsor. The trust deed is registered under the Indian

Registration Act, 1908.

Trustee

Trustee is usually a company (corporate body) or a Board of Trustees (body of

individuals). The main responsibility of the Trustee is to safeguard the interest of the unit

holders and inter-alia ensure that the AMC functions in the interest of investors and in

accordance with the Securities and

Exchange Board of India (Mutual Funds) Regulations, 1996, the provisions of the Trust

Deed and the Offer Documents of the respective Schemes. At least 2/3rd directors of the

Trustee are independent directors who are not associated with the Sponsor in any manner.

Asset Management Company (AMC)

The AMC is appointed by the Trustee as the Investment Manager of the Mutual Fund.

The AMC is required to be approved by the Securities and Exchange Board of India

(SEBI) to act as an asset management company of the Mutual Fund. At least 50% of the

directors of the AMC are independent directors who are not associated with the Sponsor

in any manner. The AMC must have a net worth of at least 10 crores at all times.

Registrar and Transfer Agent

The AMC if so authorized by the Trust Deed appoints the Registrar and Transfer Agent

to the Mutual Fund. The Registrar processes the application form, redemption requests

and dispatches account statements to the unit holders.

Custodian

A custodian handles the investment back office of a mutual fund. Its responsibilities

include receipt and delivery of securities, collection of income, distribution of dividends,

and segregation of assets between schemes. The sponsor of a mutual fund cannot act as a

custodian to the fund. For example, Deutsche Bank is a custodian, but it cannot service

Deutsche Mutual Fund, its mutual fund arm.

Depository

Indian capital markets are moving away from having physical certificates for securities,

to ownership of these securities in „dematerialized‟ form with a Depository.

TYPES OF MUTUAL FUNDS

BY DURATION

Open-end schemes:

The units offered by these schemes are available for sale (investment) and repurchase

(redemption) on any business day at NAV based prices. Hence, the unit capital of the

schemes keeps changing each day because the scheme itself buys and sells units from

investors. Such schemes thus offer very high liquidity to investors and are becoming

increasingly popular in India.

Closed end schemes:

You can invest during the initial issue period and your money is locked-in for a stipulated

period (ranging from 2 to 15 years). After the initial issue, these schemes can be bought

or sold on the stock exchanges where they are listed. Sometimes, the mutual fund will

buy units of closed end funds at regular intervals.

What is SIP?

SIP, Systematic Investment Planning is a way to invest bit-by-bit that yields assured

returns. Regular fixed investment in a particular Mutual Fund or deposit is made by an

SIP investor. In simple terms, it is quite the opposite of lump sum investment, which

involves investing all your money at one go.

Features of SIP:

SIP helps in cost averaging as you invest fixed amount regularly every month at different

NAVs. When the markets are down, the NAV goes down, giving you more number of

units. Similarly, when markets are up, you get less number of units. But overall, the

prices are averaged out. Hence, it is benefecial to have SIP in the volatile markets.

It does not necessarily give better returns, but it is indeed less risky than lump sum

investments.

Investors across the globe use this simple yet effective method for savings and wealth

accumulation.

You can start SIP in monthly income plans, income funds, equity funds and balanced

funds. You can also invest in other investment alternatives like recurring deposit

schemes from post office and banks.

Positives of SIP

Disciplined savings - Every month, you tend to keep aside a fixed amount for SIP

.

No drastic losses - SIP averages the costs since fluctuations in NAV are directly

proportionate to the units. This maintains the balance and helps you keep away from

any drastic losses.

Easy on entry and exit load - Generally, Mutual Funds do not charge an entry load (a

percentage of the amount invested) if you opt for an SIP. Moreover, you do not have to

pay an exit load (percentage of amount charged when you sell your units) if you do not

exit or sell your units within a year of buying them

.

Meet your future needs - Be it owning a dream house or a car, child's education or

daughter's marriage, we all have dreams, which are hard to realise without money in

hand. If you start saving a small amount every month or a quarter through SIP, you can

easily meet all your milestone payments and make all your dreams come true.

[C] CORPORATE FDs-BONDS & DEBENTURES

The fixed deposit space in the industry is gaining some attention as top coporates are raising

funds for their companies through the FD window. Recently Tata Motors has introduced a fixed

deposit scheme where by an interest rate of 11% is offered for deposits parked for three years and

the firm has a sanction to raise up to Rs 1,931.5 crore from the public.

financial advisors say that investors must look at their tax brackets before investing

in such FDs. Director of Transcened Consulting, Kartik Jhaveri says, "It is advisable

for people with very low income. For example, it works out best for people with

income of below Rs 3 lakh or people earning below Rs 5 lakh where they are taxed

at 20%. But it is not at all suited for high net worth clients or people in the higher

tax bracket, as the interest income would be charged at a rate of 30%.".

Two types :-

1. Bank and NBFC FDs: Offered by banks or non-banking finance companies; the Reserve

Bank of India (RBI) regulates these institutions.

2. Corporate FDs: These are offered by companies that are looking to raise money from the

open market. Corporate FDs typically pay a higher rate of interest, but also carry a relatively

higher risk than bank FDs.

Advantages:-

• FDs offer a safe return: FDs are usually secure and are very low-risk investments. Bank FDs

are guaranteed up to Rs1 lakh by the Deposit Insurance and Credit Guarantee Corporation.

• You can raise a loan against your FD: You can borrow up to 85% of your deposit amount (in

some cases, only after a few months of your FD‟s existence). This is valid only for bank FDs.

• Low maintenance: Unlike other investments such as stocks, mutual funds or even real estate,

you don‟t need to monitor your FDs on a daily or monthly basis, or undertake any kind of

maintenance work.

• Choice of time period: You can make a deposit for any period of time, from 15 days to 10

years.

Disadvantages :-

• Relatively low returns: Because FDs are very low-risk instruments, they offer low returns

compared with alternative investment options such as stocks and mutual funds.

• Lock-ups: Your money will be locked up in an FD for the duration of the deposit. As a result,

unlike a savings bank deposit, you will lose the flexibility of accessing your funds whenever

needed. You can break your FD if needed, but you would have to pay a penalty, which could

include both a reduced interest rate as well as charges that are typically around 1%of the

investment amount.

• Unfavourable tax treatment: Unlike other investment options, interest income earned from

FDs will be added to your income and taxed.

Taxes and FDs :-

• FDs and tax deduction at source (TDS): If the aggregate interest income that you are likely to

earn from all your bank FDs held in a single branch is at least Rs10,000 in a financial year

(Rs5,000 in the case of corporate FDs) then TDS will be deducted at 10%.

• If you do not fall in a taxable slab, then furnish Form 15G or 15H to your bank to prevent TDS

on the interest income that is paid to you.

[D] INSURANCE:

Life Insurance:

Fullerton securities is tie up with the ICICI Prudencial life insurance.

1.Endowement plan(Traditional plan):

This plan contains:

Guaranteed maturity benefit

Insurance+investment+tax benefit

2.ULIPs(Unit linked plan):

This plan consists of:

Insurance+investment+tax benefit

Basis-NAV

Non-Life Insurance:

Fullerton securities is tie up with the ICICI LOMBARD life

insurance.

1-Health insurance(Mediclaim)

2-Home Insurance

3-Personal accident

4-Vehicle insurance

5-Travel insuranc

[E] OTHER PRODUCT

1. MARGIN FUNDING:

2. REAL ESTATE: 1.Residental

2.Commercial

FINANCIAL PLANNING

The sector of financial planning in a investment also be something you

want to look at. Many sectors invest exist , and they are most often the top-

performing financial planning in a given year, the problem of course , is

guessing which sector will next see uniform growth and avoiding sectors

that can be hard hit by single event such as transportation.

Financial planning in share market and other social views, political slants

and religious inclination also exit. The best investment for anyone is to have

a good caring family; investment in children to build Capability and

values….

Education empower! If children have right education and right values then

no investment plan is really needed for the future other then for unforeseen

circumstances…..but none of this can be guaranteed. “Fullerton securities

financial planning provides an investment and protection to take care

of such eventualities”

Financial Planning is a process of taking a holistic view on client’s

financial information so as to meet his financial objectives in an efficient

and disciplined manner. Financial planning is a highly personalized

service that requires a thorough understanding of the process involved.

It requires constant attention as the needs of the client changes as time

passes by. Financial Planning is necessary to Achieve financial goal.

SCOPE OF FINANCIAL PLANING

Risk Management and Insurance Planning Managing cash flow risks through sound risk management and insurance techniques

Investment and Planning Issues Planning, creating and managing capital accumulation to generate future capital and cash

flows for reinvestment and spending

Retirement Planning

Planning to ensure financial independence at retirement including 401Ks, IRAs etc.

Tax Planning

Planning for the reduction of tax liabilities and the freeing-up of cash flows for other

purposes.

Estate Planning

Planning for the creation, accumulation, conservation and distribution of assets.

Cash Flow and Liability Management

Maintaining and enhancing personal cash flows through debt and lifestyle management.

Relationship Management

Moving beyond pure product selling to understand and service the core needs of the

client.

Education planning for kids and the family members Maintaining expense of higher education

FINANCIAL PLANING PROCESS

Financial Planning process, generally consists of a series of 6 steps. These are as follows:

Identifying the goals:

It is the foremost step that requires establishing current and future financial goals. These

goals should be prioritized and categorised in short, medium and long term goals. The

quantification of each goal is also necessary to gauge the amount needed for each goal at

the required point of time.

Data Gathering:

Gathering all information about the current income, expenses, assets, debts, liabilities and

risk profile. This data will provide the clear picture of current financial status and will

help in estimating the future cash flows and household budget

Analysis of financial data:

This step includes the analysis of the current & future cash flows and networth. At this

stage, one should use scientific techniques and concepts proven over years in the field of

investments in calculations and projections. After analysing the data, certain shortfalls or

excesses will come into the focus. The estimation of financial gaps is very important so

that right investments shall be started at the earliest to cover the shortfalls.

Preparation of Financial Plan:

Now, the roadmap can be laid that will help you accomplish your goals, given your risk

tolerance and time frames. The preparation of financial plan also includes identifying

various asset classes & investment instruments that suits your needs at the best. The plan

may call for several changes such as diversifying your investments, shifting your asset

allocation, increasing your insurance coverage, or drafting wills and other estate planning

documents. The plan may also call for longer-term actions such as altering your spending

and saving habits over time

Implementing the plan:

This is the step where things are put into actions. Implementing your plan may involve

opening certain types of accounts like bank, demat, trading or purchasing certain types of

securities, policies, funds or other financial and investment-related products. The

implementation should be done immediately and the recommended actions should be

made at the earliest. One should also stick to the plan while implementing it.

Reviewing the plan periodically:

Financial planning is not a one time exercise, rather it is a continuous process. For the

successful planning, it should be reviewed periodically (generally quarterly and atleast

once in 6 months) or at a major event in the life. It also involves keeping an eye on the

performance of your investments, periodically rebalancing / churning / restructuring your

portfolio.

Individuals who feel that the whole financial planning exercise is beyond them are

always advised to consult professional financial planners. Also, the involvement of

specialty areas like investment, insurance, income tax, estate planning and retirement

planning makes it sensible to ask for professional assistance atleast at the beginning.

CHAPTER:4

RESEARCH OBJECTIVE

54

Primary objective :

The study of market in Ahmedabad was conducted with the primary objective to make

people know about financial planning and our co.FULLERTON SECRUITIES AND

WEALTH ADVISORS Ltd.

Secondary objective :

To know priority level between different criteria of investment like safety level, returns,

liquidity, time horizon, risk.

To know the investors approach towards their investment.

To analyze the view of investors.

To make people understand the process of Financial planning.

To know the investment pattern

Time scope :

For completing this project I have taken a time period of 6-weeks of my summer training.

Sample size :

The sample size of the survey was 100 people,which is randomly taken.

Methods of data collection :

Primary methods

1. Questionnaire

Secondary methods

1. Magazines.

2. Newspapers

3. Websites

4. Friend and Relative:-

55

RESEARCH

(1)GENDER:-

As the research was done among the investors so the major chunk of the people were male

and very less that is 14% were female. The numbers of the female investors are increasing

but it is not rapid as it should be.

(2) Do you invest?

□Yes □No

MALE , 86%

FEMALE, 14%

MALE FEMALE

GENDER % OF RESPONDANTS

Male 86

Female 14

56

Do you

invest

RESPONDENT %

Yes 97 97%

No 3 3%

CHART SHOWING THEIR INVEST IN ANY SECURITIES

Analysis and Interpretation:

The research shows that most of the people want to invest their valuable cash and kind in

one way or the other to get the secured and regular returns. The investors are always in the

search of the measures or the techniques which will give them the best and the fastest returns

along with the safety and liquidity now and then when required by the customers. The main

reason of any investment is to appraise the principal amount and to increase the marketability or

the liquidity. The investment can be of any kind depending on the person‟s capability and risk

bearing capacity.

(3) if yes, in which different type of financial instruments do you invest?

□ Mutual Fund □ Equities □ PPF

Yes 97%

No 3%

Y…No

57

□fixed deposits □insurance □ Others ________

criteria for investment RESPONDANTS

Mutual Fund 10

Equities 32

PPF 2

fixed deposits 10

insurance 42

Others 4

05

1015202530354045

TABLE-2 respondants

TABLE-2 respondants

ANALYSIS & INTERPRETATION

The research conducted interprets that out of the hundred respondents 32 % people believe that

Stock Market is a best options for the investment,10 % of people believe that FD is a good

option and42% of people think that Insurance is a good option of investment and 10% of people

feel that Mutual fund is a good option of investment

(4)TIME HORIZON OF YOUR INVESTMENT

58

QUESTION 1

YEARS % OF RESPONDANTS

>5 yrs 19

2-3 yrs 26

1-2 yrs 37

<1 18

From the above data we come to know that 26% of the people are planning to make their

investment about 2-3 years, while 37% of the people are made their investment for 1-2

years. As per the proper investment criteria to earn handsome return on your investment

one has to make investment more then 3 years. In 3 years investment can have proper

time to grow at investors desired level. Only 19% people‟s views are looked to be long

term investment as they are ready to invest around 5 years. As per the investment criteria

one needs to keep investment around 4-5 years. Generally the investors want quick gain

in short span of time.

(5) Do you /family member have a broking account?

□yes

□No

19

26

37

18

0

5

10

15

20

25

30

35

40

>5 yrs 2-3 yrs 1-2 yrs <1

59

YES 64%

NO 36%

ANALYSIS & INTERPRETATION

From the above chart we can interpret that 64% of the people have broking account and

rest of the people have no broking account.

(6)What kind of investment is preferred by you?

□ intraday

□delivery

□future & options

yes

no

INVESTOR %

intraday 23

delivery 65

future & options 12

60

ANALYSIS & INTERPRETATION

We can indicate from the above chart that majority of people are interested to be invested at

delivery basis .one important thing that very less people & are interested to go for future & options

.One most important information about future & option are shown below.

(7)WHAT KIND OF INVESTOR YOU ARE?

0

10

20

30

40

50

60

70

intraday delivery future & options

%

%

61

Kind %

Speculator 18%

Hedger 24%

Investor 32%

Arbitrator 26%

ANALYSIS & INTERPRETATION

From the above chart, we can analyze that majority people are investor( 32%).and

minority people are speculator(24%). Hedger & arbitrator are at middle level. So ,more people

believes to be investor.

(8)Which is the right time to invest in stock market?

0

5

10

15

20

25

30

35

Speculator Hedger Investor arbitrator

62

□Bullish

□Bearish

Bullish 28%

Bearish 72%

ANALYSIS & INTERPRETATION

From the above chart we can analyze that majority people believes to invest at the

time of bearish. they might think that it is right time to invest.

(9).Have you heard about the “Fullerton Securities and Wealth

Advisors Ltd”?

□Yes

□No

right time to invest in stock market

Bullish

Bearish

YES 22%

63

ANALYSIS & INTERPRETATION

From the above chart we can indicate that 78% of the people doesn‟t heard about fullerton .so

we can say that co requires more &more publicity.

YES

NO

NO 78%

64

CHAPTER: 5

SWOT ANALYSIS:-

STRENGHTS:

Low brokerage system

Effective after sales services system

Advisory desk operations provided by fullerton

65

Well established brand equity

Tele trade also possible

Freedom account with different facilities

Personalize alerts

Consolidated statements-a unique service offering

WEAKNESSES:

Lack of Aggressive advertisements and sales promotion

programmed.

High charges for demate a/c compare to others

The working of the sales force is traditional

Inventory investments should be more.

Less popularity

Mis-communication and ineffective co-ordination at various

level of hierarchy.

OPPORTUNITIES:

Growing capital market in India & other country

Political stability in India & other country

Better governance by SEBI

Decreasing interest rates in India, so people are motivated to

earn more returns through capital market.

THREATS:

Demand & supply

Increasing competition in security market.

Lost in faith in share market after big scams in the stock

market.

Natural calamities

66

Inability of customers to pay brokerage at the right time.

High risk involved in the stock market.

Most of the investors are for the short term period, but financial advisers have to teach

them about benefits of long term investment.

Fullerton Securities and wealth advisor ltd. should do some advertisement in the market

to make people aware about our Company.

67

Fullerton Securities and wealth advisor ltd. marketing team should promote in such a way

that clients should not misinterept it as fullerton India credit.

On that analysis we are come to know that there should be different types of readymade

plans so that the investors can choose the proper plans according to their requirement.

Questionnaire

Dear Sir/Madam, I am a student of GTU, Ahmedabad. As part of my project "Curent Scenario of

broking business & Different pattern of Investments", I am doning a survey on 'Broking Account

of FULLERTON SECURITUES AND WEALTH ADVISORS LTD. I request you to help me in

it by filling up yhe following questionnaire. The details by you will be kept completely

confidential will not be disclosed to anybody.

1) In which different type of financial instruments do you invest?

a.Mutual fund

b.Equities...

c.Fixed deposits

d.PPF

e.Insuurance..

f.Other specify

68

2) From How many years are investing in financial intruments?

a. 1-2 year.

b. 3-5 year.

c. 6-10 year.

d. 11-15 year.

e. More than 15 years.

3) Do you / family member have a broking account?

a.Yes

b.No

4) If yes, where do you have a your broking account?

............................................................

5) Are you looking forward to change your current broker?

a.Yes

b.No

6) What is the brokerage that you're paying?

..........................................................

7) Generally what kind of investment is preferred by you?

a.Intraday

69

b.Future & Option

c.Delivery

8) Generally what kind of investor are you?

a.Speculator

b.Hedger

C.Invetor

9) Which is the right time to invest in stock market?

a.Bullish

b.Bearish

10) Have you heard about the Fullerton Securities and Wealth Advisors Ltd?

a.Yes

b.No

11) In case you whish to take account what would be your preference?

a.Freedom Account

b.Silver Account

c.Platinum Account

d.Gold Account

e.Prepaid Account (i.e. 5000,10000,25000).

12) Do you know about the Future & Options?

70

a.Yes

b.No.

BIBLIOGRAPHY

www.amfiindia.com

www.mutualfundindia.com

www.moneycontrol.com

www.valueresearchonline.com

www.fullertonsecurties.co.in

www.investshoppe.co

http://www .indianground.com/real_estate.india.aspx

http://www.savingwala.com/postoffice-saving/index.html

(as on 05/09/2010)

http://www.multiutils.com/itp/bk.htm

(as on 06/09/2010)