1

INVESTORS PERCEPTION ON DIFFERENT INVESTMENT ALTERNATIVES

A PROJ ECT REPORT

Under the guidance Of

-------------guide name-----------
Submitted by

Dhiman Kasundra
in partial fulfillment o f the requirement
for the award of the degree

Of
MBA

IN
Finance

April 2010



2

BONAFIDE CERTIFICATE

Certified that this project report titled INVESTERS PERCEPTION ON DIFFERENT
INVESTMENT ALTERNATIVES is the bonafide work of Dhiman Kasundra who
carried out the project work under my supervision.




SIGNATURE
(FACULTY INCHARGE)
-------------guide name-----------
Address:







ACKNOWLEDGEMENT



3

I sincerely thank, Dr. R.K.Balyan, IBMR (Institute of Buisness Management and
Research), and Ahmadabad for granting me the permission to do this Project.
I would like to express my immense gratitude -------------guide name-----------IBMR
(Institute of Business Management and Research), for his guidance, continuous
encouragement and valuable suggestions at every stage of the project.
I extend my deep sense of gratitude to all my family and friends who have directly or
indirectly encouraged and helped me to complete this project successfully.
I would like to extend my thanks to all the unseen hands that have made this project
possible.









Place: Ahmadabad (Dhiman Kasundra)
Date: 15th April 2010







DECLARATION



4
I hereby declare, that this project report titled Investors Perception on Different
Investment Alternatives, has been successfully completed under the guidance of Prof.
-------------guide name-----------, Institute of Business Managent and Research,
Ahmadabad.

I further declare that this project report is the result of my own efforts and that it has
not been submitted to any other university for the award of a degree or does not
form the basis of any degree or diploma of other similar title of recognition in any
other university.



Place: Ahmedabad Dhiman Kasundra
Date: 15
th
April 2010















Executive Summary


5
Investment is defined as the process of, Sacrificing something for the prospect of gaining something
later. The definition implies that there are three dimensions to an investment. Time, todays sacrifice and
prospective gain. The objectives of investment vary from near term to long-term high priority goals to low
priority goals to the entrepreneurial or money making goals. There are several investment constraints such as
liquidity, age, needs for regular income, time horizon, risk tolerance, tax liquidity, etc. The challenge in
investment therefore lies in choosing the appropriate investments which will meet the investment objectives
of the investors, subject to the investment constraints.
Angel Broking's tryst with excellence in customer relations began in 1987. Today, Angel has
emerged as one of the most respected Stock-Broking and Wealth Management Companies in India. With its
unique retail-focused stock trading business model, Angel is committed to providing Real Value for Money
to all its clients.
The Angel Group is a member of the Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and
the two leading Commodity Exchanges in the country: NCDEX & MCX. Angel is also registered as a
Depository Participant with CDSL.
I have also visited some departments. All these departments are introduced below here in brief.
Trading Department:-
Trading in security, commodity and derivative trade are entered here. Trading department
handles works of opening of trading account and process of trading account.
According to SEBI rules it is advisable to open trading account. An investor can open trading account
in any depository. Angel has different department facilitated the transaction of trading. To open trading
account any one must have follow the specific procedure.
A trade is an activity i which a buy and sell order match with each other. Matching of two orders is done
automatically by system. Whenever a trade takes place the system sends a trade confirmation slip gets
printed at the trade workstation of the user with unique trade number. A system also broadcast a message to
the entire market through ticker window displaying the detail of a trade.
DP Department:-


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A depository can be compared to a bank. A depository holds securities (like share, debenture, bonds
and units) of investors in electronic form. Besides holding securities, a depository also provides services
related to transactions of the securities.
Angels Depository Participant addresses the need of retail investor clients of Gujarat. Angel was the
first corporate DP in Saurashtra. As on date, we service 50, 000+ clients through a well-equipped branch
network. We offer online services offered by CDSL. We are affiliated to CDSL in order to give optimum
cost solution to our clients keeping in view the investors needs.
Banking Department:-
Banking department is a very sensitive department work in Angel Broking Ltd. It check out the
process of pay in and pay out of funds it includes all the work like the entry of checks that is going for
clearing in banks and also concerned with the risk management department.
KYC Department:-
KYC means Know Your Client that is also a very sensitive part of Angel Broking Ltd. All the clients
having a trading account with Angel Broking Ltd must go through the process of the KYC department and
must fill a KYC form. And it is also helpful for the mapping of clients into system.
Risk Management Department:-
Risk management is also known as a heart for any brokerage firm it is also known as soul in risk
management department manage all the accounts of all the clients so no client can bad debts a single amount
of a company risk management also take care of debit and credit of all the clients.
The report analysis INVESTOR S PERCEPTION the survey used the method of questionnaire to
gauge the investors response. Although the people aware about investment alternatives the product, seek
some improvements in the investment alternative.
Overall 6 weeks training at Angel Broking Ltd. Were a perfect training experience where I have
learnt many things like to convince the people, handling the customer, to handle the pressures, follow
up the customer, many marketing strategies and many more.
TABLE OF CONTENTS


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Chapter
No.

Particulars Page
No.
Ch 1. Investors Perception on Different Investment Alternatives
a. Introduction 10
b. Functions of market 12
c. Development of securities market in India 13
e. Security Market indicators 15
f. Major Stock Exchanges of the world 17
g. Introduction to Domestic stock exchange 21
h. BSE (Bombay Stock Exchange) 23
i. NSE (National Stock Exchange) 26
j. NCDEX (National commodities & Derivatives Exchange)
27
k. MCX (Multi commodity Exchange) 29
l. Types of Groups in Stock Market
m. Stock Broker
n. Players in stock broking industry



Ch 2. MAIN BODY
a. Introduction to Angel Broking
b. Features of Angel Broking
c. Core Values of Angel Broking
d. Investment Philosophy of Angel Broking

e. Organization Structure of Angel Broking
f. Angel group companies
g. Trading Department
h. Pay out and Pay in Process
i. Depository Department
j. Demat Account
k. Online Trading
l. Other Services

Ch 3. CONCLUSION
a. Data Analysis and Data Interpretation
b. Research Hypothesis
c. Limitations
d. Findings
e. Learning from the Report


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f. Bibliography
g. Appendix



9





CHAPTER: 1

INTRODUCTION TO INVESTORS
PERSEPTIONS ON DIFFERENT INVESTMENT
ALTERNATIVES










10
(A) Introduction
Investment is defined as the process of, Sacrificing something for the prospect of gaining something
later. The definition implies that there are three dimensions to an investment. Time, todays sacrifice and
prospective gain. The objectives of investment vary from near term to long-term high priority goals to low
priority goals to the entrepreneurial or money making goals. There are several investment constraints such as
liquidity, age, needs for regular income, time horizon, risk tolerance, tax liquidity, etc. The challenge in
investment therefore lies in choosing the appropriate investments which will meet the investment objectives
of the investors, subject to the investment constraints.
Investment can be classified into 2 categories, namely, 1. Financial investment and 2. Real
investment. Financial investment refers to the investment in debentures, shares, gift-edged securities etc.
whereas the real investment refers to the investment in land and house property, bullion, precious stones and
art objects.
The financial instruments are traded in the financial market which consists of the borrower, lender,
instruments and intermediaries. Financial markets are further divided into 2 parts, money market and capital
market as per the structure given below:

Money market is the market for short-term funds, while capital markets are the market for the long-
term funds. The corporate entities borrow money through the issue of long-term instruments in the primary
market; the secondary market refers to the place where such instruments are traded in the stock exchanges.
Financial
Market
Money
Market
Primary
Secondary
Capital
Market
Primary
Secondary


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An investor can obtain the instruments both by applying for them in the primary market or purchasing them
in the secondary market. The liquidity for these instruments is created only in the secondary markets.
We can also classify the financial market as:
- Securities market and
- Forex market.
Further, the principal securities markets are:
- Markets for government securities.
- Money markets.
- Capital markets.
- Derivatives market.














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(B) Functions of Markets:
Primary market:
- Serve the purpose of raising funds in the form of new securities.
Secondary market:
- facilitate the investor to dispose off the stock at most competitive prices.
- Provide liquidity to the investors.


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( C ) Development of securities market in I ndia
The origin of stock exchange in India goes back to the later part of the 18
th
century. The earliest
security dealings were transactions in loan securities of the East India Company, the dominant institution of
those days. Corporate shares came into picture by 1830s and assumed significance with the enactment of the
Companies Act in 1850. The introduction of limited liability marked the beginning of the era of modern joint
stock enterprises.
This was followed by the American Civil War in 1860-65. However, the bubble burst with the end of
the Civil was and a disastrous slump followed. It was long and severe. It also resulted in ostracism of the
broker community.
The tremendous social pressure on the brokers led to their forming of an informal association which
later gave birth to The Native Share and Stock Brokers Association, (now known as the Bombay Stock
Exchange) in 1887. This stock exchange played a major role during the phase of recovery from the seven-
year depression. It continued o grow in stature and size of operations and became the nerve center of all
financial activity and the first one to be recognized by the Government of India.
The cotton textile industry which contributed a lot in the establishment of BSE was also the prime
factor in the development of Ahmadabad as a center for dealing in stocks and shares. As new cotton textile
mills were floated and the volume of business grew, the Ahmadabad Share and Stock Brokers Association
was formed in 1894, which later came to be known as the Ahmadabad Stock Exchange.
The next stock exchange was established in Calcutta in 1908. The industries that contributed to its
birth and subsequent development were jute, coal and mining. Like the BSE, it was born out of crisis; when
the boom of 1904-08 broke and a need was felt for an organized body for mutual protection of brokers and
safety of the trade.
With the World War 1, all imports into India ceased and the Indian manufacturers were faced with a
boom. The 3 stock exchanges flourished during the period of prosperity. However, the boom also led to the
formation of many rival stock exchanges. However, many of them perished during the slump that followed.
Most of the other stock exchanges languished till 1956 when the government came out with a comprehensive
legislation called the Securities Contract (Regulation) Act to regulate the functioning of the stock
exchanges.


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This legislation made it mandatory on the part of the stock exchanges to secure recognition from the
central government. At present there are 23 such recognized stock exchanges in India including the OTCEI
and the NSE.
Recent Developments:
In the past few years, the Indian Capital Markets have grown phenomenally. This has to be attributed
to the various changes which have been brought about, especially, by SEBI. The conferring of statutory
status to SEBI, one has observed qualitative as well as quantitative changes in the nature of capital markets.
Foremost amongst these being the institutionalization of the of the capital markets.
Mutual Funds have also increased in popularity, as can be gauged from the fact that they have
mobilized over Rs. 1,10,000 crore. The entry of private sector MF such as Kothari and Morgan Stanley led to
an increase in competition due to which one can observe new products being introduced and better service
being made available to customers. In order to regulate their functioning SEBI has come out with SEBI (MF)
Regulations in 1993, which lays down the framework which governs the functioning of MF.
The entry of Foreign Institutional Investors has been another major development. Intermediaries in
the primary and secondary markets such as merchant bankers, banker to the issue, share transfer agents,
registrars to the issue, underwriters, brokers, sub-brokers, etc. must be registered with the SEBI. Regulations
have been issued by SEBI to govern their functioning. Codes of conduct, capital adequacy and other norms
and a system of monitoring and inspecting their operations have been instituted to enforce compliance.
One very important development which has far reaching consequences is the emergence of Credit
Rating Agencies such as CRISIL, ICRA and CARE. This shall go a long way in protecting the interests of
investors of debt instruments. Above all, the recognition of OCTEI and NSE shall go a long way in
promoting fair and transparent dealings in Stock Markets.






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(D) Security Market I ndicators
The general movement of the stock market is usually measured by averages or indices consisting of
group of securities that are supposed to represent the entire stock market or its particular segments. Thus,
Security Market Indices (or) Security Market Indicators provide a summary measure of the behavior of
security prices and the stock market. The security market indices are indicators of different things and are
useful for different purposes.
Below mentioned are the important uses of an index:
They are the basic tools to help and analyze the movements of prices of various stocks listed in
stock exchanges and are useful indicators of a countrys economic health.
The return on the index, which is known as market return, is helpful in evaluating the portfolio
risk-return analysis.
Market indices are designed to serve as indicators of broad movements in the securities market.
They act as sensitive barometers of the changes in the trading patterns in the stock market.
Index can be used to compare a given share price behavior with its movements.
I nternational Stock I ndices:
Morgan Stanley Capital International measures the International and National performance by
publishing the following indices:
World index - (consisting of 1500 stocks)
Europe index - (consisting of 600 stocks)
Europe, Australia & Far East Index - (consisting of 1000 stocks)
These indices are of prime importance for fund managers for better asset allocation and performance
measurement. Since 1987, the Financial Times has published the FT-Actuaries world index with the help of
Goldman Sachs and WM Company. Several national indices are provided along with the industrial and
regional indices.


16
The most important are World index, Europe index and Pacific index. Other international indices are
Salomen/Russel Global Equity Index, Union de Banque Suisses (UBS) and Dow Jones International Indices.
Domestic Stock I ndices:
In any national market, domestic investors prefer the national indices for judging the movements of
the national stock markets. Most of these Indies are broad-based covering companies from several industries
with proper market value weightage. In these indices, each company is assigned a weight proportional to its
market capitalization.
Local indices are preferable to the international indices due to the following reasons:
- Most of the local indices have been used for several years.
- They represent a comprehensive coverage of the national listed stocks.
- Local indices are readily available with the daily stock prices.
The domestic indices include BSE-Sensex, BSE 100, BSE 200 and DOLLEX, BSE 500, Sectoral
Indices, S&P CNX50, etc.
Calculation Of I ndex:
Index can be calculated with the help of following formula:
Indext = PtQt
PbQb
Where,
Index t = Index value on day t.
Pt = Ending prices for stocks on day't.
Qt = No. of outstanding shares of day t.
Pb = Ending price for stocks on base day.
Qb = No. of outstanding shares on base day.


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(F) Major Stock Exchanges of the World:
Below described are the major stock exchanges of the world:
New York Stock Exchange (NYSE)
The origin of NYSE can be traced back to 1792, when 24 prominent brokers and merchants gathered
in Wall Street to sign Brettonwood agreement for trading of securities on common commission basis. The 1
st

corporate stock traded was that of Bank of New York. In 1817, New York brokers established a formal
organization named as New York Stock and Exchange Board (NYSEB). After the collapse of Ohio Life
Insurance Co. in 1857, the market value of exchange was crashed by 45%. In 1863, the NYSEB was
renamed by NYSE. Membership in NYSE became exchangeable in 1868, as it enabled it members to sell
their membership.
After the great depression, NYSE developed rapidly during 1950s and 1960s. Trading hours were
extended from 10 am until 4 pm. In 1979, NYSE expanded into futures trading and it formed the NY Futures
Exchange (NYFE). NYSE experienced tremendous growth during 1990s and Dow Jones Industrial Average
crossed 3,000 levels. In this period, exchange started 2 trading sessions which eventually assured 24 hr
trading. In 1995, the 3-day settlement period was started.
NYSE trading process is a unique system. On the trading floor an auction takes place on each day.
Open bids and offers are provided by exchange members who act on behalf of their institution and investors
buy and sell orders for each listed security by meeting directly on the trading floor. Prices are calculated on
the basis of supply and demand. Stock buy and sell orders funnel through a single location, ensures that any
common investor is exposed to a wide range of buyers and sellers. This process provides any common
investor the best available price.
NASDAQ:
It is the worlds first electronic stock market incorporated in 1971. With its bold initiatives, it came
out with a lot of innovations and became a world market leader in the stock trading. As the worlds largest
stock market in the US, it has 4000 listed companies.


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The primary index of NASDAQ is the NASDAQ composite. NASDAQ has Exchange Traded Fund
(ETF) called the NASDAQ-100 tracking stock (NASDAQ symbol: QQQ). The other indices on NASDAQ
are the NASDAQ Biotechnology Index and the NASDAQ Financial 100 Index. The NASDAQ is one of
the most active exchanges in the world today. In the last decade, the NASDAQ experienced a 1,041% growth
in share volume.
The market capitalization has more than quadrupled over the last 10 years. Also, in 2001, the
NASDAQ became the first US stock exchange ever to meet the ISO 9001 Quality Standards.
Frankfurt Stock Exchange:
The roots of the Frankfurt Stock Exchange go back to the period of medieval fairs. Since the year
1330, when Emperor Ludwig expanded this privilege to include a spring fair as well, the city became an
important center for commercial and monetary transactions. As a result of the trading that occurs during the
fair the goods manufactured against specific customer orders gradually developed into merchandise
production for an open and nationwide sales market.
The industrial revolution in Germany brought to light the advantage of financing costly projects
through share issues. The first share issue a participating certificate of the Osterriechische National Bank
was traded in Frankfurt back in 1820. Following the collapse of the Nazi regime in 1945, the stock exchange
remained initially closed for half a year. Nevertheless, it was already reopened in September 1945 as one of
the first German Stock Exchanges.
It was only following the currency reform of 1948 and the growing consolidation of the German
economy that the Frankfurt Stock Exchange gradually recovered its old significance. Beginning in 1956, the
purchase of foreign securities was again permitted in Germany. The stock exchanges played an important
role as capital intermediaries for the countrys post-war reconstruction.
The Frankfurt Stock Exchange has continuously taken the current economic needs and developments
of the country into account in recent decades. The FSE developed the DAX share index, which was launched
in 1988 and is today one of the worlds most important share indices. Frankfurt is Germanys leading stock
exchanges. The FSE has consolidated its position as the worlds 3
rd
largest securities trading center that is
organized as a stock market.


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London Stock Exchange:
The origin of the London Stock Exchange goes back to the coffee houses of 17
th
century. London,
where people willing to invest or raise money, bought and sold shares in Joint Stock Companies. As the no.
of Joint Stock Cos. grew, so did the no. of brokers acting as intermediaries for investors. In 1760, a group
of 150 brokers formed a club at Jonathans coffee house where they met to buy and sell shares. In 1773, it
was converted to stock exchange. The exchange developed rapidly playing a major role in financing the UK
companies during the industrial revolution. By the 19
th
century, more than 20 stock exchanges were
operating around the country.
Later on, all firms became brokers/dealers allowed to operate in a dual capacity either buying
securities from or selling them to clients without the need to deal through the 3
rd
party. Trading moved from
being conducted face to face to being performed via computer and telephone from separate dealing
rooms. In 1986, the stock exchange became a private ltd. Co. under the Companies Act, 1985. While LSE is
a private ltd. Co., its profit is not distributed amongst the shareholders.
It launched Alternative Investment Market (AIM) to provide a market that is accessible to both
investors and companies from a wide range of backgrounds. The Stock Exchange Electronic Trading Service
(SETS) was launched in Oct, 1997. The electronic order book was introduced to bring greater speed and
efficiency to London market.
Companies from over 60 countries are listed on the LSE. There are over 2,750 companies quoted on
the exchange, including over 500 from over outside the UK. The LSE provides speedy real time trade
information to over 85,000 installed terminals worldwide.
Tokyo Stock Exchange:
In the 1870s, a securities system was introduced in Japan and public bond negotiation began. This
resulted in the request for public trading institution and Stock Exchange Ordinance was enacted in May.
Based on this law, the Tokyo Stock Exchange Co., Ltd was established on May 15, 1878 and the trading
began in June. On July 1, 1969, TOPIX (Tokyo Stock Price Index) was inaugurated. Trading in TOPIX
options and futures started during 1988-89.


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In 1991, first time depository system was started and trading was put in a better order. Trading in
stock index futures and equity options started during 1997-98. TSE wide area network was introduced on
June 1, 1999. TSE maintains market for stock and related instruments like futures and options. TSEs role as
recognized and popular stock exchange has recently enhanced due to advances in international capital flow.

The TSE functions as a self-regulated and a non-profit organization under the provisions of the
Securities and Exchange law. The major function of the TSE is to provide a market place for the secondary
market operaions.TSE always maintains higher standards for safety of investors and for protecting this it can
suspend trading or delist the security. In order to ensure investor protection and to ensure fair and transparent
transactions, the TSE necessitated the accurate, swift and fair disclosure of company and security
information.














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(G) 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


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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
23. Over The Counter Exchange of India (OCTEI), Mumbai 23-08-1994




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(H) 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.
Objectives of BSE:
1. To measure market movements
2. Benchmarks for funds performance
3. For index based derivative products

To measure market movements:
As far as history and its wide acceptance is concerned no other index is compared with BSE sensex
which reflecting market movement and sentiments sensex is describes the mood of the I.S.M and it also
effected by the mood of Indian economy.

Benchmarks for funds performance:
The companies, which are, include in a blue chip and they are wide and balanced industries represent
in the sensex the performance of their funds.

For index based derivatives products:
There are 3 types of person in the market 1) institutional investors 2) money managers 3) small
investors. This 3 types of person because of this investment persons they are refer BSE sensex since 1875


24
sensex comprises of leading companies in all the significant sectors in the economy we believe that this
contract is easy to covert in a cash in the Indian market and it will collect a predominant market share.
One really important thing about BSE is that sensex are calculated automatically it used by the
trading computer to calculate the sensex every minute and every second are continuously update on all
trading. BSE is open in a day at 9.55 am to 3.30 pm 5 days in a week.

Other BSE index:

BSE 100 BSE - healthcare
BSE - 200 BSE capital good index
BSE - 500 BSE - consumer durable index
BSE PSU index BSE TECK index
BSE IT index BSE FMCG index
DOLLEX 30 DOLLEX 200

Listing in the BSE:
Criteria for selecting of scripts for the sensex:

Market capitalization:

A company or script should be figure in the top 100 companies which is listed by market
capitalization and it also market capitalization of the script should be more then 0.5% the total index that is
the minimum weight age should be 0.5% BSE is a market capitalization weighted index.

Industry representation:

When company selection would take at that time company should be represent his balance sheet of
account and its economic movement those company which are in index they are leader in their industry
group because of his sound management.

Volume traded:



25
The script should be among the top 150 companies listed by average volume traded per day for the
last SPC months.

Listing requirement obligation:

The memorandum and articles of association of the company must content prescribed provisions.
The company offers the public subscription through a prospectus at least a prescribed minimum percentage
of its issued capital.
The company should inform the exchange authorities about the dividend distribution immediately after the
board meeting.















26
( I ) 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.
Objectives of NSE:
To establish a nation wide 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.


27
(J ) NCDEX (National Commodities and
Derivatives Exchange)
NCDEX started working on 15th December, 2003. This exchange provides facilities to their trading
and clearing member at different 130 centers for contract. In commodity market the main participants are
speculators, hedgers and arbitrageurs.
Promoters of NCDEX are :
National Stock Exchange (NSE)
ICICI bank
Life Insurance Corporation (LIC)
National Bank for Agricultural & Rural Development (NABARD)
IFFCO
Punjab National Bank (PNB)
CRISIL


Why NCDEX?
NCDEX is nationalized screen based system which is providing transparent, private and easy
services.
NCDEX is one of the traditional media which gives online information.
NCDEX is one of the Indian commodity exchange, constructed on the basis of the current national
institutes the exchange has been established with the coloration of leading institutes like NABARD,
LIC, NSI etc.






28
Facilities provided by NCDEX:
NCDEX has developed facility for checking of commodity and also provides a wear house facility.
By collaborating with industrial partners, industrial companies, news agencies, banks and developers
of kiosk network NCDEX is able to provide current rates and contracts rate.
To prepare guidelines related to special products of securitization NCDEX works with bank.
To avail farmers from risk of fluctuation in prices NCDEX provides special services for agricultural.
NCDEX is working with tax officer to make clear different types of sales and service taxes.
NCDEX is providing attractive products like weather derivatives.



29
(K) MCX (Multi Commodity Exchange)
MULTI COMMODITY EXCHANGE of India limited is a new order exchange with a mandate for
setting up a nationwide, online multi-commodity marketplace, offering unlimited growth opportunities to
commodities market participants. As a true neutral market, MCX has taken several initiatives for users. In a
new generation commodities futures market in the process, become the countrys premier exchange.
MCX, an independent and a de-mutualized exchange since inception, is all set up to introduce a state
of the art, online digital exchange for commodities futures trading in the country and has accordingly
initiated several steps to translate this vision into reality.













30
( L ) 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 whos 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.








31
(M) Stock Broker
A stock broker is a person or a firm that trades on its clients behalf, you tell them what you want to
invest in and they will issue the buy or sell order. Some stock brokers also give out financial advice that you
are charged for.
It wasnt too long ago and investing was very expensive because you had to go through a full service
broker which would give you advice on what to do and would charge you a hefty fee for it. I can think of
three different types of stock brokers.
1. Full Service Broker: A full-service broker can provide a bunch of services such as
investment research advice, tax planning and retirement planning.

2. Discount Broker :A discount broker lets you buy and sell stocks at a low rate but doesnt
provide any investment advice.

3. Direct-Access Broker: A direct access broker lets you trade directly with the electronic
communication networks (ECNs) so you can trade faster. Active traders such as day traders
tend to use Direct Access Brokers.



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( N )Players in the stock broking industry
Angel Broking Ltd.:

The Angel Group has emerged as one of the top 5 retail stock broking houses in india, having
memberships on BSE, NSE and the two leading commodity exchanges in the country i.e. NCDEX and
MCX. Angel Broking Ltd is also registered as a depository participant with CDSL.
The group is promoted by Mr. Dinesh Thakkar, who started this enterprise as a small sub-broker in
1987 with staff strength of 3 personnel. As on date, the group is managed by a team of 150
professionals & 700 support staff and a nation wide network comprising 40 branches, over 2000+ sub
brokers and business associates and 6000 terminals which cater to the requirements of more than 1 lacs
retail clients.
ShareKhan (SSKI )
ShareKhan, Indias leading stock broker is the retail arm of SSKI(S S Kantilal Ishwarlal) an
organization with over eighty years of experience in the stock market. Sharekhan offers depository services
and trade execution facilities for equities, derivatives and commodities backed with investment advice
tempered by decades of broking experience. Its team of dedicated analysts are constantly at work to track
performance and trends. Sharekhan runs India's largest chain of share shops with around 250 outlets in 113
cities.
I CI CI Securities Ltd.
ICICI Web Trade Limited (IWTL) maintains www.icicidirect.com (hereinafter referred to as the
"Website") and owns, has the license to use or otherwise has the right to use, free of any pending or
threatened liens, all content, graphics, HTML and CGI or other scripts displayed and used on the Website.
Whereas IWTL is an Affiliate of ICICI Bank Limited and the Website is owned by ICICI Bank Limited.
This site gives the facility of 3-in-1 accounts. I.e. the 3-in-1 account integrates your banking, broking
and demat accounts. This enables you to trade in shares without going through the hassles of tracking


33
settlement cycles, writing cheques and Transfer Instructions, chasing your broker for cheques or Transfer
Instructions etc.
Kotak Securities
Kotak Securities Ltd., a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs
(holding 25% - one of the worlds leading investment banks and brokerage firms) is Indias leading stock
broking house with a market share of 5 - 6 %. Kotak Securities Ltd. has been the largest in IPO distribution -
It was ranked number One in 2003-04 as Book Running Lead Managers in public equity offerings by PRIME
Database. It has also won the Best Equity House Award from Finance Asia - April 2004
The company has 42 branches servicing around 1,00,000 customers. Kotakstreet.com the online
division of Kotak Securities Limited offers Internet Broking services and also online IPO and Mutual Fund
Investments.
Kotak Securities Limited manages assets over 1700 crores under Portfolio Management Services
(PMS) which is mainly to the high end of the market. Kotak Securities Limited has newly launched Kotak
Infinity as a distinct discretionary Portfolio Management Service which looks into the middle end of the
market.
I ndia Infoline Ltd.
5paisa is the trade name of India Infoline Securities Private Limited (5paisa), member of National
Stock Exchange and The Stock Exchange, Mumbai. 5paisa is a wholly owned subsidiary of India Infoline
Ltd, Indias leading and most popular finance and investment portal. 5paisa has emerged as one of leading
players in e-broking space in India.
It offers two types of product: -
Investor Terminal (IT): -
Investor Terminal is recommended for infrequent investors, who fall into the "Buy and Hold" school
of investing.
Trader Terminal (TT): -


34
Trader Terminal is for the dedicated day traders, who churn their portfolio on minor movements in
the market, sometimes several times a day.

I ndiabulls Ltd.
Indiabulls is India's leading retail financial services company with 77 locations spread across 64 cities.
While our size and strong balance sheet allow us to provide one with varied products and services at very
attractive prices, over 750 Client Relationship Managers are dedicated to serving unique needs.

Indiabulls is lead by a highly regarded management team that has invested crores of rupees into a world
class Infrastructure that provides clients with real-time service & 24/7 access to all information and products.
The flagship Indiabulls Professional Network offers real-time prices, detailed data and news, intelligent
analytics, and electronic trading capabilities, right at ones finger-tips. This powerful technology is
complemented by knowledgeable and customer focused Relationship Managers. We are creating a world
of Smart Investor- This is what indiabulls is saying.
Indiabulls offers a full range of financial services and products ranging from Equities to Insurance to enhance
customers wealth and hence, achieve their financial goals.











35










CHAPTER: 2
ANGEL BROKING:


36
(A) Angel Broking About the
Company
Angel Broking's tryst with excellence in customer relations began in 1987. Today, Angel has
emerged as one of the most respected Stock-Broking and Wealth Management Companies in India. With its
unique retail-focused stock trading business model, Angel is committed to providing Real Value for Money
to all its clients.
The Angel Group is a member of the Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and
the two leading Commodity Exchanges in the country: NCDEX & MCX. Angel is also registered as a
Depository Participant with CDSL.
The company is offering the services like Research, Investment Advisory, Wealth Management
Services, IPO, Depository services, MF, Currency trading, E-broking and Commodities to individual
investors. The group is promoted by Mr. Dinesh Thakkar and professionally managed by a team of 1950+
direct employees. It has a nation wide network comprising 12 regional centers, 60 branches, 2850+ registered
sub-brokers and business associates and 6370+ active trading terminals.
Business Of Angel:
Equity Trading
Commodities
Portfolio Management Services
Mutual Funds
Life Insurance
Personal Loans
IPO
Depository Services
Investment Advisory




37
Angel Group
Angel Broking Ltd.
Angel Commodities Broking Ltd.
Angel Securities Ltd.


38
(B) Features of Angel:
Angel Broking has the following unique features:
Multiple exchanges on a single screen: online trading on BSE/NSE (Cash and F&O), MCX and
NCDEX on a single screen.
Competitive brokerage rates: Angel is providing its clients the best value added services at the
competitive brokerage rates.
Online fund transfer: company is giving convenience of online transfer of funds from their bank
accounts, to the margin account of Angel online.
Personalized services: Clients can avail personalized advisory services from our trained and
experienced dealers, regarding trading opportunities.
Back office infrastructure: Angel provides an automated web enabled centralized back-office
whereby the clients can have access to their trade confirmation reports, holding settlement, their net
position, the margins and the statement of accounts and ledgers on a 24*7 basis.











39
( C ) Angel Broking Core Values
Our Vision:
To provide best value of money to investors through innovative products,
trading/investments strategies, state of the art technology and persnalized service.

Our Motto:
To have complete harmony between quality-in-process and continuous improvement to
deliver exceptional service that will delight our customers and clients.

Our CRM Policy: Customer is King
A customer is the most important visitor on our premises. He is not dependent
on us, but we are dependent on him. He is not an interruption in our work. He is
not an outsider to our business. He is part of it. We are not doing him a favor by
serving him. He is doing us a favor by giving us an opportunity to do so. -
Mahatma Gandhi.

Business Philosophy:
Ethical practices & transparency in all our dealings.
Customers interest is above our own.
Always deliver what we promise.
Effective cost management.



40

Our Quality Assurance Policy:
We are committed to providing world-class products and services which
exceed the expectations of our customers, achieved by team-work and a
process of continuous improvement.




41
( D ) Angels Investment Philosophy

Given the clients risk profile, maximize performance by adhering to disciplined investment
approach backed by quality research.

Angels investment philosophy is based on two key attributes:

1. Wealth creation :

The creation of Wealth can be categorized as:
Having money work for client
Having others work for client
Client working for money



2. Wealth Preservation:

As wealth grows, focus is shifted to striking a balance between asset creation and preservation.
Wealth preservation applies to day-to-day financial life which includes managing cash flow and overall risk
management.



42
(E) Organization Structure
CS
O

BRANC
H
G
BRANC
H
H
BRANC
H
A
BRANC
H
B
BRANC
H
F
BRANC
H
E
BRANC
H
D
BRANC
H
C
CHANNE
L
PARTNER
S
ANGEL
CLIEN
TS
ANGEL
CLIEN
TS


43
(F) Angel Group Companies










Angel Broking Ltd. Member on the BSE Depository Participant with CDSL
Angel Capital & Debt Market Ltd.
Membership on the NSE Cash and Futures &
Options Segment
Angel Commodities Broking Pvt. Ltd. Member on the NCDEX & MCX
Angel Securities Ltd. Member on the BSE
Angel Global Capital Pvt.Ltd. NBFC registered with RBI
Mimansa Systems Pvt. Ltd. for Software Development


44
(G) Trading Department
Trading in security, commodity and derivative trade are entered here. Trading department handles
works of opening of trading account and process of trading account.
According to SEBI rules it is advisable to open trading account. An investor can open trading account
in any depository. Angel has different department facilitated the transaction of trading. To open trading
account any one must have follow the specific procedure.
A trade is an activity i which a buy and sell order match with each other. Matching of two orders is
done automatically by system. Whenever a trade takes place the system sends a trade confirmation slip gets
printed at the trade workstation of the user with unique trade number. A system also broadcast a message to
the entire market through ticker window displaying the detail of a trade.
Procedure for opening a trading account:
Angel follows the following steps for opening the trading account:
Client asking for form.
The clients fill up the form and submit to Angel.
All the details are duly checked and proofs are verified.
Angel makes agreement to segment and relevance agreement has been attached.
The next step is coding. In coding name and surname are checked and if anything matches then it
shows that account has already been opened. Otherwise new code is given. After coding address
details are entered.
The next step is brokerage. The brokerage charge depends upon different segment and clients. In the
same day square up the slabs according to which the client is charged.
At last the data entry is done.
Documents required for opening the account:
Photocopy (Driving license, ration card, etc.)
Demat account proof.
Bank account proof.


45
(H) Pay out and pay in process:
After completion of trading the further process is done through this department. Mainly it handles 2
processes which are known as payout and paying process. Payout and paying process follows T+2
transaction systems which can be understood as by the below given description.
Pay out Process:
When transaction is done between the 2 members of same DP then it is called internal settlement.
But, it can be known only after 4 o clock when trading gets over. It can be known that whether the
transaction is done internally or not. Otherwise all the transactions are done through exchange only. Now if
the situation arises in which one of the members of DP has sold a definite quantity of shares but against
which no one purchased the same amounts of quantity of shares belonging to same company then the whole
lot will go to the exchange. On the other hand, if one of the parties has bought comparatively less quantity
then sold by another party then it is called short fall of shares.
Now, lets understand the above concept with help of the practical example. Suppose Mr. X one of
the member of the Angel in Rajkot has sold 500 shares of Reliance Ltd. But against which member of Angel
at Ahmadabad branch has purchased only 300 shares of the same company then it is called shortfall. Now,
after the closing of trading activity, exchange will prepare a shortfall report and this will prepare a summary
from the report. After that if DP has access then dealing will be done internally otherwise action will be taken
by exchange in which exchange will purchase or sell shortfalls of shares from the markets. Payout process
mainly indicates excess amount to be paid by DP i.e. when purchase of share is comparatively higher than
selling.
Pay in process:
Now, if we look from the other side, the same concept, then it is called pay-in process. In this process
if selling is done comparatively higher than purchase, then DP will earn, i.e. DP will get relatively more
amount against which it has to pay less amount in both the transaction i.e. in payin and payout the payment
will be done through cheque only.


46
( I ) DP Department
I ntroduction to Depository:
A depository can be compared to a bank. A depository holds securities (like share, debenture, bonds
and units) of investors in electronic form. Besides holding securities, a depository also provides services
related to transactions of the securities.
Following are the benefits of participating in a depository system:
Through demat account, immediate transfer of security is possible.
There is no stamp duty of transfer of securities.
Elimination of risk associated with physical certificates such as bad delivery, fake securities, etc.
Reduction in paper work involved in transfer of securities.
Change in address recorded with DP gets registered with all companies in which investors holds
securities electronically, eliminating the need to correspond with each of them separately.
Transmission of securities is done by DP eliminating correspondence with companies.
Convenient method of consolidation of portfolios accounts.
Holding investments in equity and debt instruments in a single account.
Depository participant of CDSL:
Angels Depository Participant addresses the need of retail investor clients of Gujarat. Angel was the
first corporate DP in Saurashtra. As on date, we service 50, 000+ clients through a well-equipped branch
network. We offer online services offered by CDSL. We are affiliated to CDSL in order to give optimum
cost solution to our clients keeping in view the investors needs.
We place a high premium our customer service and prompt reporting in order to ensure integrity of
transactions. Our customer centric schemes have been designed to address the investor needs relative to
element (such as trade execution dematerialization and re materialization) economical prices.
We are giving following services without any charges:
Demat confirmation.


47
Remat confirmation.
Rejection of instruction.
Special transaction statement as our desire.
Allotment of shares under IPO.
Every quarter we send the Ledger to each Client.
We intimate the renewal of account.
Speedy e-services client without any additional charges.
We are offering special retention service under which client does not need to give the trade and
charges per trade Rs. 16.




















48
( J )DEMAT Account
Dematerialization and trading in the demat mode is the safer and faster alternative to the physical
existence of securities. Demat as a parallel solution offers freedom from delays, thefts, forgeries, settlement
risk and paperwork. This system works through depository participants who offer demat services and the
securities are held in the electronic form for the investors directly by the depository.
Now-a-days, every transaction can be done through electronic form only. So, it is compulsory for
investor to trade in demat account. There are several DPs offering various DP related services and Angel is
one of them. Under the guidelines of SEBI, investors have to do their transactions through Demat account
only.
Procedure for opening a Demat Account:
Proof of identity:
A beneficiary account must be opened only after obtaining a proof of identity of the applicant.
The applicants signature and photograph must be authenticated by an existing account holder or by
applicants bank or after ID, driving license or PAN card with photograph and further.
Proof of Address:
- Certified copies of ration card/passport/voter ID/PAN card/driving license/bank passbook.
- Ensure that all compulsory fields in the account opening form are filled.
- In case of corporate, ensure a copy of board resolution of authorized signatories. Ensure proper
authorization in case of power of attorney holder.
- DP should give a copy of agreement to the client, including the charges

Procedure for opening of a Demat Account of Corporate :-
- Memorandum and Articles of Association (MOA & AOA), board resolution for opening demat
account and list of authorized signatories and photographs, etc.
- Introduction by an existing account holder or by the applicants bank.
- Proof of address of the corporate evidenced by the document registered with Registrar of Companies
or acknowledged copy of Income Tax Return or Bank Statement or Leave and License agreement/
Agreement for sale.


49

An authorized official of the Participant shall verify the proof if address with the original documents
and affix his/her signature on the documents submitted by the Client.
Change of Address:
A written application for change of address of the corporate entity, signed by all the authorized
signatories should be submitted to the Participant.
- Following documents should be submitted along with the application.
- Latest transaction statement of the corporate account received from the participant.
- Proof of new address along with the original document of new address, for verification by the
Participant.
- At least one of the authorized signatories should visit the office of the Participant in person to
submit its application for change of address along with necessary documents and sign the
application once again in the presence of the officials of the participant.
- An authorized official of the Participant shall verify the application and the above mentioned
documents with the original and put his/her signature on the application with remarks
verified and thereafter record the change of address in the DPM system.












50
(K) Online Trading:
Angel I nvestor:
Highlights:
- User-friendly browser for investors.
- Easy online trading platform.
- Works in proxy and firewall system set up.
- Integrated Back office to access account information anytime, anywhere.
- Streaming quotes.
- Refresh static rates when required.
- Multiple exchanges on single screen.
- Online fund transfer facility.
Angel Trade:
Highlights:
- User-friendly browser-based online trading platform.
- Streaming quotes.
- Can be used in proxy and firewall environments.
- Convenience of accessing your account from anywhere.
Angel Diet
Highlights
- Application-based platform for day traders.
- Hi-speed trading terminal on your desktop.
- Streaming quotes for real time rate updates.
- Multiple exchanges on single screen.
- Online fund transfer facility.


51
(L) Other Services provided by Angel:
Equity:
Investing in shares or stock market is inarguably the best route to long-term wealth accumulation.
However, it can also be a very risky proposition due to high risk-return trade-off prevalent in the stock
market. Hence, it is more appropriate to take help of an experienced and trustworthy expert who will guide
you as to when, where and how to invest.
Angel provides guidance in the exciting world of stock market with suitable trading solutions and value-
added tools and services to enhance your trading experience.
Online Trading:
- Three different online products tailored for traders & investors
- Customized single screen Market Watch for multiple exchanges
- Real-time rates
- Flash news & intra-day calls
- Intra-day & historical charts with technical tools
- Online research
- E-broking & back-office software training
Quality Research:
- Wide range of daily, weekly and special Research reports.
- Expert Sector Analysts with professional industry experience.
Advisory:
- Real-time market information with News updates.
- Investment Advisory services.
- Dedicated Relationship Managers.
- Portfolio Management Services.
Support


52
- 24x7 Web-enabled Back Office.
- Centralized Help Desk.
- Live Chat support system.
Derivatives:

The derivative segment is a highly lucrative market that gives investors an opportunity to earn
superlative profits (or losses) by paying a nominal amount of margin. Over past few years, Future & Options
segment has emerged as a popular medium for trading in financial markets. Future contracts are available on
Equities, Indices, Currency and Commodities.

Angel with its membership as Trading and Clearing Member of NSE F&O Segment and BSE Derivatives
Segment, provides you a gateway to the exciting world of derivative market.

Commodities:

Commodities Derivative market has emerged as a new avenue for investors to create wealth. Today,
Commodities have evolved as the next best option after stocks and bonds for diversifying the portfolio.
Based on the fundamentals of demand and supply, Commodities form a separate asset class offering
investors, arbitrageurs and speculators immense potential to earn returns.

Angel aims to harness the immense potential of the Commodities market by providing you a simple yet
effective interface, research and knowledge.

The Angel Advantage :

Angel provides user-friendly online platforms for commodity trading in the leading commodity exchanges.

Online Trading :
Three different online products tailored for traders & investors


53
Single screen customized Market-Watch for MCX & NCDEX with BSE & NSE
Streaming quotes
Top quality Research :
In house research on more than 25 commodities.
Highly skilled Analysts with professional industry experience.
Daily, Weekly and Monthly Research Reports.

Pro-active Relationship Management :
Active advisory desk.
Efficient & nationwide network.
Seminars, workshops and investment camps for investors.

Life I nsurance:

. Ensure your familys well-being by securing their future with a life insurance policy. No financial
planning is complete without life insurance. Angel offers an array of life insurance products like Term Plans,
Endowment Plans, Money back Plans, Children Life Insurance Plans and ULIP Plans to meet your individual
insurance requirements

The Angel Advantage:
Low and affordable Premium with maximum life cover.
Assistance at your doorstep.
Tailor made plans to suit your financial needs.
Help desk for all your queries.
Hassle free and transparent dealings.



54
Mutual Funds:

Investing in a Mutual fund is an excellent way of diversifying risk as well as portfolio. Angel presents
its Mutual fund services that strive to meet all your mutual fund investment needs. We have a wide spectrum
of investment schemes from all top mutual fund houses.

Angel also provides recommendations based on in-depth research, mutual fund performance and mutual fund
ratings to help meet your investment goals.



The Angel Advantage:
Pan India presence.
Online and offline transaction facility.
Schemes from all major fund houses.
Latest MF News and Fund Managers views.
Latest New Fund Offers (NFO).
Information and tools to help you select the right scheme.
Dedicated Customer Help desk.
24x7 Web-enabled Client Back Office.

Depository Services:

Enjoy the dual benefits of trading and depository services under one roof and experience efficient,
risk-free and prompt depository service. Angel is registered as a Depository Participant with CDSL. We are
also a member of the Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and the two leading
Commodity Exchanges in the countryNCDEX & MCX.


Angel Advantage:


55
Automated pay-in facility
Access information Anytime, Anywhere
Quarterly demat statements with valuation
Statements on demand
View Demat A/C statement online
Competitive transaction charges

Exclusive benefits available with Angel:
No risk of loss, wrong transfer, mutilation or theft of share certificates
Hassle free automated pay-in of your sell obligation with no need for physical instruction
Reduced paper work
Speedy settlement process resulting in increased liquidity of your securities
Instant disbursement of non-cash benefits like Bonus and Rights
Efficient pledge mechanism
Wide branch coverage
Personalized services of trained Help desk
No charges for extra Transaction statement and Holding statement
Combined monthly 'Bill-cum-Transaction-cum-Holding-cum-Ledger' statement of your investments
PMS (Portfolio Management Services):
Portfolio Management Service is a highly customized service offering a range of investment options
best suited in the current market scenario. Angel offers professional Portfolio Management Service (PMS) to
HNIs who seek customized solutions to realize their investment goals. Our Portfolio Managers are equipped
to design an investment portfolio across various investment avenues like Equities, Fixed Deposits, Bonds etc.
in sync with your unique needs.

Approach to PMS:
Risk Profiling
Research & Asset Allocation


56
Stock Selection
Review & Rebalancing
Angel, with years of experience and research expertise, offers the best in class Portfolio Management
services. .
Benefits at Angel:
Investment in companies that have a strong competitive advantage over their peers .
Well laid-out investment philosophy.
Pro-active management of funds.
Dedicated Relationship Manager.
Quarterly newsletter from fund management team.
Committed parentage.

Currency Trading:
The global increase in trade and foreign investments has led to inter-connection of many national
economies. This and the resulting fluctuations in exchange rates, has created a huge international market for
Forex rendering investors another exciting avenue for trading. The Forex market offers unmatched potential
for profitable trading in any market condition or any stage of the business cycle.


Benefits with Angel:
Low Commissions.
No Middlemen
Standardized lot size.
Low transaction cost.
High liquidity.


57
Instant transactions.
Low margin, high leverage.
Online access.
Interbank market.
Self-regulatory
No insider trading.
Limited regulation.
NRI services:
Living in a foreign country never weakens the thread that binds you to your homeland. Angel
Broking understands the varied needs of the NRIs and values their patronage. We offer a bouquet of products
and services for NRIs.
Angels service matrix:
NRI services desk for personalized assistance to NRI and PIO clients.
Dedicated offline equity dealing desk.
Online equity trading platforms.
Depository services.
24x7 back office.
NRI investment advisory desk.
PMS.
IPO and mutual funds.
Insurance and personal loan solutions.
Banking support.
Pan Card assistance.
I nvestment advisory:
Even a seasoned investor knows that effective timing of markets is not possible. Therefore,
professional and expert advice is essential to generate superior returns from the stock market.


58
At Angel, we offer you investment advisory services with ternary objective of superior returns, risk
minimization and portfolio diversification. Supported by a highly specialized and dedicated Research team,
Angel follows a client-centric approach to offer customized solutions.
Personalized services:
One-to-One communication between client and Relationship Managers.
Effective investment advice and Research reports for clients.
Daily Calls before market hours.
I PO :
An investor can garner estimable returns by investing early in a company through an Initial Public
Offering (IPO). Angel helps to invest in the primary market through the IPO route in an effortless way.
We also provide you with latest news about the upcoming and current IPOs including their listing
dates. Our analysts also offer investment advice based on thorough fundamental research of the currently
open IPOs.
Angel Gold:
In a volatile market it is very difficult for an investor to pick up value stocks which will give decent
returns in the long run. We at Angel Gold realize your need for a professional financial advisor and hence we
are here to assist you in making wise and profitable decisions.
We strongly believe that right decisions taken at the right time are always beneficial and thats why
our research team comprising of 12 sector specialists along with the research head will understand your need,
return expectation, risk profile and time horizon to design your profile accordingly. This portfolio will be
tracked regularly and our efforts would be to optimize your returns in the long run.
Features of the Angel Gold:

- A premium service for clients who need professional guidance on long term investments.
- Minimum fund / portfolio of Rs. 1 Lac and maximum of Rs. 4 lac eligible for Angel Gold.
- Appropriate risk profiling before taking investment decisions.


59
- Periodic group meeting and seminars in branches.
- Monthly newsletter from the desk of Angel Gold.
- Browser based back-office software.



















60




CHAPTER: 3

CONCLUSION.












61
(A) Research
Fundamental Research Services:
The Sunday Weekly Report:

This weekly report is the ace of all reports. It offers a comprehensive market overview and
likely trends in the week ahead. It also presents few top picks based on an in-depth analysis of
technical and fundamental factors. It gives short term and long term outlook on these scripts, their
price targets and trading strategies. Another unique feature of this report is that it provides an updated
view of about 70 prominent stocks on an ongoing basis.

The Industry Watch:

This report provides an in-depth analysis of specific industries which are likely to over
perform others in the economy. It analyzes their strengths and weaknesses and ascertains their future
outlook. The final view is arrived at after thorough interaction with industry experts. Also
comparative performances of various companies in the sector are evaluated and top picks are
recommended.

Stock Analysis:

Angels stock research has performed very well over the past few years and the Angel Model
portfolio has consistently outperformed the benchmark indices. The fundamentals of select scripts are
thoroughly analyzed and an actionable advice is provided along with investment rationale for each
script.

Flash News:
Key developments and significant news announcements that are likely to have an impact on
markets / scripts are flashed live on trading terminals. Flash news keeps the market participants updated
on an online basis and helps them reshuffle on their holdings.



62
Technical Research Service:
Nifty Tracker:
Nifty Futures is the most traded instrument with the highest volumes in F&O and excellent
liquidity. The team tracks the Nifty Future and generates calls based on unique trading system which is a
result of their focused research over the past few years. The objective is to generate positive returns for
traders who are looking for a high risk / high reward product.
Online Chart:
An online forum to help clients, specifically day traders in judging the directions of the market
and stocks which are in the limelight.
Intraday Calls:
For day traders, Angel provides intra-day calls with entry, exit and stop loss levels during market
hours. These calls are flashed on their terminals. Their analysts continuously track the calls and provide
recommendations according to the market movements.
Position Calls:
Angels Position Trading Calls are based on through analysis of the price movement in the
selected scripts. These calls are for a 10-15 days time span with the stop loss and target levels. These
calls are flashed on their terminals during market hours.
Derivative Strategies:
Angels analysts take view on the Nifty and selected stocks based on the derivatives data and
technical tools suitable Derivative Strategies are devised, which are flashed on their terminals and
published in their reports.
Future Calls:
A customized product for HNIs to help them trade with leveraged position; wherein clients are
advised on the stocks with entry, exit and stop loss level for short term benefits. Over and above this,
financial status of the calls is monitored all the times.


63
Reports:
Market Outlook at 9:15 a.m. :
Its a crisp pre-market that arms the client with sensitive information before the opening bell. Key
corporate developments, policy announcements, geo-political news and views are analyzed for their
impact on the market.
Technical Report at 6:00 p.m.:
This report analyzes trading pattern, historical background, and market positions of key stocks
and offers short term (1 to 5 days) as well as medium term (10 to 20 days) view. Tracking individual
scripts as well as the Sensex and Nifty, its insights cut trough the market maze.
Derivative Analysis Report at 9:15 a.m. :
The Report provides information on FII activity in derivative segment, change in open interest put
call ratio, cost of carry of stock and index based derivative products. The derivative analysts use the
above tools to project movements during the next trading sessions.










64
(B)Research methodology
Research methodology is a systematic way to research means a step by step process of
research it includes research objectives, research problems, sampling method, sample size, data collection.
From the all these steps we can interpret the all the collected data and do some findings and also give some
recommendations on the research topic.
As part of my grand project report, I wanted to have an overlook at the present market
conditions. So I first decided to do a pilot survey and based on that to make some strategy to enhance the
awareness of Angel Broking Ltd. Brand and to penetrate the relative to competitors. So I first took the
sample of 100 respondents as a base and did the survey with the help of a questionnaire, which is displayed
in the annexure. The results of the survey are discussed later in this section.

Research objectives
Research objective is a most important part of the research methodology and through which we can
easily see the purpose behind the research and it plays a crucial role at the time of the findings and also
recommendations about the whole research.
Objective of research:-
(1) To identify the perception of investment to invest.
(2) To understand the investors behavior to invest.
(3) To indentify the awareness of investors about investments.









65
Research problem
Research problem means all that activities for that we have to conduct whole research and all the learning at
a time of doing a research.

Investors perception


Research perception


Trend of investment


Market research and survey


Data analysis and interpretation


Research methodology
Research methodology states how the research study is undertaken. It includes specification of research
design source of data, method of primary data collection, sampling design and analysis procedure adopted.
Research methodology states what procedures were employed to carry out the research study.

Target audience
Followings all are included as a target audience in the survey of perception of investors.


66
Self employees.
Govt. employees.
Businessmen
Others.


Sampling method

There was a little scope for change cons duration in this study. So non probability sampling was preferred
accordingly, convenient sampling method was used.

Sample size

The numbers of investors were decided on the basis of different types of occupation and their designation.
Sample size of 100 was taken for the research.

Data collection

Since data collection signifies a very crucial place in a pilot survey. I have collected primary data by personal
interview through structured questionnaires. I had used only this method because of time constraints.




Questionnaire form

The questionnaire for the purpose of this study was carefully drafted and very well developed. Proper care
has been taken in asking the questions, in wording them and in maintaining the sequence of the question.



67
The questions asked were in open ended and close ended form, open ended question were to get customers
own views and in close ended questions, multiple choice questions and dichotomies questions were included.


Questionnaire survey
This part of the data collection method can be termed as quantitative survey and the questions were very
specific. The data has been analyzed based on the statistical factors and been described through a graphical
analysis in the further pages.














68
( C )DATA ANALYSI S AND I NTERPRETATI ON
QUE.-1 - Occupation of investors?


No. of respondents:-
Self employed 20
Govt. employed 17
Employees 26
Businessmen 8
Others 29

So from the above chart we can see that maximum no. of investors are from the others group and
minimum are from the businessmen group.


INVESTROS' OCCUPATION
Self employed-20%
Govt. employed-17%
Employees-26%
Bussinessmen-8%
Others-29%


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Que.-2 Education of investors?



No. of respondents:-

Under graduate 22
Graduate 37
Post graduate 29
Others 12


So from the above chart we can see that the highest no. of investors are from the graduate group and
that is 37% and the lowest are from the other and that is 12% only.


EDUCATION
Under graduate-22%
Graduate-37%
Post graduate-29%
Others-12%


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Que.3 Annual income of the investors?



No. of respondents:-

50,000-100,000 14
100,000-150,000 23
150,000-200,000 39
200,000-250,000 24

So from the above column chart we can observe that the maximum no. of investor is from the income
group having income 150,000-200,000 and that is of 39%


0
5
10
15
20
25
30
35
40
45
50,000-100,000 100,000-150,000 150,000-200,000 Above 200,000


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Que.4 Objectives of investors?



No. of respondents:-

Capital gain 43
Fixed income 22
Tax benefits 18
Others 17


So from the above chart we can see that most of the investors want capital gain that is short term gain
or long term gain from their invested capital.


INVESTMENT OBJECTIVE
Capital gain-43%
Fixed income-22%
Tax benefits-18%
Others-17%


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Que.5 Various investment alternatives?



No. of respondents:-

Equity 84
Mutual fund 53
Commodity 39
Banking 68
Real estate 32
Insurance 28
Gold 17

So from the above chart we can observe that maximum no. of investors are ready to invest their money
into an equity and here it is 84 while minimum no. of investors are in gold and that is 17. There are
also percentage showing about each investment alternatives and that are in equity there is 26%
investment and that is highest amongst all and in gold that is 5% that is least amongst all.
INVESTMENT ALTERNATIVES
Equity-26%
Mutual fund-17%
Commodity-12%
Banking-21%
Real estates-10%
Insurance-9%
Gold-5%


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Que.6 How much risk they can tolerate?



No. of respondents:-

High 0
Moderate 38
Low 49
Zero 13


So from the above chart we can see that the maximum no. of investors are habitual to take the
comparatively low risk and the lowest are in high risk that is 0 out of 100 investors.


RISK TOLERANCE
High-0%
Moderate-38%
Low-49%
Zero-13%


74
Que.7 How much return investor is expecting?



No. of respondents:-

5-10 % 12
10-15 % 19
15-20 % 34
Above 20 % 13
Cant say 22

So from the above column chart we can observe that highest no. of investors expecting return between
15 to 20% and the lowest are expecting 5 to 10% return.



0
5
10
15
20
25
30
35
40
5-10% 10-15% 15-20% Above 20% Can't say


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( D )Limitations

The main shortcoming of the project was that the generalizations have been made based on a
restricted sample of 100 respondents.

Area of the project is limited to Rajkot city only so the conclusion may be biased.

The collection of primary data is comparatively difficult and some times the question of non response
arises because the people may not like to disclose the information.

Respondents to whom we questioned about the investment did not take the survey seriously and
answered the questions just for the sake of answering.

Respondents are not ready to give their personal details like contact number and financial details.













76
(E) Findings:

I came to know about the preference of investors after doing the activity of market tapping about the
investment patterns.

Most of the investors are tend to invest into equity market that is more than 80% investors invest in
equity.

Investors have different objectives behind investment, so one should be able to understand their
objectives in order to invest in any alternative.

Banking is the second best investment alternative that investors like to invest into it.

Investors invest into equity agree that they invest in it with the objective of safety of income and also
to get higher return.

Investors from the group of businessmen are most tending toward the investment.

The highest numbers of investors are graduates and the least are other that are illiterate.

Annual incomes having 150,000 to 200,000 investors are more likely to invest into different
investment alternative.

Most of the investors objective to invest that is capital gain that is short term or long term.

Investors can risk tolerance up to moderate level and there is not a single investor who wants to take a
high profile risk.

Most of the investors expecting 15 to 20% return and the least expecting above 20% return.


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( F )Learning from the project
My work at Angel Broking Ltd. Was to check investors perception for that I personally went to
many corporate offices and brokers offices for personal interview. In Angel Broking Ltd I have also get the
knowledge of overall stock exchange and the process of settlements take place at stock market also about
depositary participant. I also work for the awareness of E-chopda that is online software of accounting and it
is a one kind of free service of Angel Broking Ltd.
Usage of concepts in the firm, learnt in academic year
There were certain concepts which I had learnt during my academic year and used in the training period.
They were:
Perception of investors:-
Most of the investors invest with the objective of capital gain means to gain in the short as well as
long term and also expect the higher return on investment.
They also look for the safety of investment and also want to get fixed income with their investment.

Trend of investment:
Through the help of questionnaire I can say that there is a particular market trend to invest money in
to equity that is in research we can see that out of sample size of 100 there are 84 investors who want to
invest in equity.

Investment pattern:
Through the help of research and personal meeting with the investors I can also learn about the
investment pattern means the style of investment for getting maximum possible return.
Investment should not be in only one option but it should be balanced so there is a less chance of loss
of money.




78

Strategy adopted by investors:
I have also learnt the investment strategy which was adopted by different investors through personal
meeting with the investors.

Market watch:
Through the help of research I have also learnt to watch market on regular basis and it helps really a
lot for the investment.
Through the help of market watch an investor can also see the market trend of investment.

During full project my learnings were many. This was my first very experience for me on a job and that too
in Brokerage Company. According to me working in the brokerage industry as a first experience has opened
many future lines for me. I have learnt the basics of the management of a operations in brokerage company.

Learning at the firm:
During this tenure of 6 weeks I had practically applied a lot of concepts learnt during academic year for the
investors perception and also get the overview of stock market.

Dealing with brokers:
I have seen that Angel Broking Ltd is much serious about their clients that are brokers it also keep
personal as well as professional touch with their brokers. So at the time of training I also learnt that how to
deal with the clients of the company and how to retain them into a business.

Knowledge of stock market:
Through the period of my training I have also learnt about the overview of stock market that is how
stock market as a whole process and settlement cycle or process, depositary participants etc.

Operations at Brokerage Company:


79
Through my period of the training I have also go through the various operations take place at Angel
Broking like KYC dept., DP department, banking, risk management and quality assurance. As per my
opinion I can say that operations at any brokerage company are a sensitive part of a company.

Learnings of new soft skills:
While undergoing training at Angel Broking, with the above mentioned learning I had learned certain soft
skill, these soft skill are as follows:


Communicating with people:
Informing all the target customers about the E-chopda software that is online software for an
accounting purpose.
Communicating with staff of Angel Broking.

Language of corporate world:
During my grand project I had learnt the language of corporate world. How they are responding, how
they behaving, how they are talking, performing their operations, their life style and the way they are
working.

Handling clashes with the superiors:
During the fulfillment of my grand project I had faced certain clashes with my direct superior. This 6
weeks period taught me how to handle the situation.

Handling pressure:
While I was working at Angel Broking at operations level there was a constant pressure of
maintaining relations with brokers as we are representative of Angel Broking.






80
( G ) Bibliography
The project report on Angel broking on the topic of INVESTORS PERCEPTION could be successful
with the co operation of the project and the faculty guide. But along with the training period I had taken the
help of the following books and links to know more about the subject.

Book References:
Indian Financial Systems by Bharti Pathak.
Journal of Behavioral finance.

Web References:
www.wikipedia.com
www.google.com
www.angeltrade.com













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( H ) QUESTIONNAIRE
Research questionnaire on the topic of INVESTORS PERCEPTION to check the perception of
investors behind the investment.
1. Investors occupation:-
(2) Self employed
(3) Govt. employed
(4) Employees
(5) Businessman
(6) Others

2. Education of investors:
(1) Under graduate
(2) Graduate
(3) Post graduate
(4) Others

3. Annual Income:
(1) 50,000-100,000
(2) 100,000-150,000
(3) 150,000-200,000
(4) Above 200,000

4. Investment objective:
(1) Capital gain
(2) Fixed benefits
(3) Tax benefits
(4) Others




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5. Investment alternatives:
(1) Equity
(2) Mutual fund
(3) Commodity
(4) Banking
(5) Real estate
(6) Insurance
(7) Gold

6. Risk tolerance:
(1) High
(2) Moderate
(3) Low
(4) Zero

7. Expected return:
(1) 5 10%
(2) 10 15%
(3) 15 20%
(4) Above 20%
(5) Cant say