COMPANY PROFILE

SHAREKHAN- YOUR GUIDE TO THE FINANCIAL JUNGLE

SSKI is a veteran equities solutions company with over 8 decades of experience in the Indian
stock markets. It helps the customers/people to make informed decisions and simplifies
investing in stocks. Sharekhan brings to you a user- friendly online trading facility,
coupled with a wealth of content that will help you stalk the right shares.

SSKI HISTORY:-
Founded in 1922, it is one of Indias oldest brokerage houses having over Eighty years
of broking experience.

Founding member of the Stock Exchange, Mumbai and pioneer institutional broker.

1
ABOUT SHAREKHAN

SSKI named its online division as SHAREKHAN and it is into retail broking.

The business of the company overhauled 6 years ago on February 8, 2000.

It acts as a discount brokerage house to a full service investment solutions provider.

It has specialized research product for the small investors and day traders.

Largest chain of share shops, 310 shares, shops in 137 cities across India.

The site was also launched on February 8, 2000 and named it as www.sharekhan.com.

The Speed Trade account of Sharekhan is the next generation technology product
launched on April 17, 2002.

It offers its customers with the trade execution facilities on the NSE and BSE, for
cash as well as derivatives, depository services.

2
REASONS WHY INVESTORS CHOOSE SHAREKHAN

1. EXPERIENCE

SSKI has more than eight decades of trust and creditability in the Indian stock
market. In the Asia Money brokers poll held recently, SSKI won the Indias best
broking house for 2004 award. Ever since it launched sharekhan as its retail broking
division in February 2000, it has been providing institutional level research and
broking services to individual investors.

2. TECHNOLOGY

With our online trading account you can buy and sell shares in an instant from any PC
with an internet connection. You will get access to our powerful online trading tools
that will help you take complete control over your investment in shares.

3. ACCESSIBILITY

In addition to our online and phone trading services, we also have a ground network
of 240 shares shops across 110 cities in India where you can get personalized
services.

4. KNOWLEDGE
In a business where the right information at the right time can translate into direct
profits, you get access to a wide range of information on our content-rich portal,
sharekhan.com. You will also get a useful set of knowledge-based tools that will
empower you to take informed decisions.

3
5. CUSTOMER SERVICE

Our customer service team will assist you for any help that you need relating to
transactions, billing, demat and other queries. Our customer service can be contacted
via a toll-free number, email or live chat on sharekhan.com.

6. CONVENIENCE

You can call our Dial-n-trade number to get investment advice and execute your
transactions. We have a dedicated call-center to provide this service via a too-free
number from anywhere in India.

7. INVESTMENT CHOICE

Sharekhan has dedicated research teams for fundamental and technical research. Our
analysts constantly track the pulse of the market and provide timely investment
advice to you in the form of daily research emails, online chat, printed reports and
SMS on your phone.

4
 SWOT ANALYSIS
STRENGTHS
Online Trading Facility
Largest Chain of Retail Share Shops in India
80 years of Experience in securities market
Dedicated and responsive workforce/staff
Value added service for HNI client
Research Center
Membership of NSE & BSE
Trading option like Future & Option and Commodities
Volume based differentiated product.
WEAKNESSES
Less informative website
Does not have slab rate brokerage which is provided by competitors
Problems due to network crash
Unawareness Among Investors
OPPORTUNITY
Collaboration with international financial institution
To tap the Untapped market
To capture the market lost to its Competitors.
To focus on developing a superior and powerful portal
To spread awareness of its Brand Name.
THREATS
Follow government laws
Severe Competition
Competitors develops
Prolonged depression and high volatility in the market

5
 New Entrants.

INTRODUCTION

6
 INTRODUCTION

WHAT IS INVESTMENT?

Investment is the employment of funds on assets with the aim of earning income or
capital appreciation. For a layman, investment means some monetary commitments.

Investment has two attributes namely time and risk. Present consumption is sacrificed
to get a return in the future. The sacrifice that has to borne is certain but the return in the
future may be uncertain. This attribute of investment indicates the risk factor.

To the economist, investment is the addition made to the nations capital stock that
consists of goods and services that are used in the production process. A net addition to the
capital stock means an increase in the buildings, equipments or inventories.

Financial investment is the allocation of money to assets that are expected to yield
some gain over a period of time. It is an exchange of financial claims such as stocks and
bonds for money. They are expected to yield returns and experience capital growth over the
years.

The financial and economic meanings are related to each other because the savings of
the individual flow into the capital market as financial investments, to be used in economic
investment.

WHY SHOULD ONE INVEST?

(1) To earn return on your idle resources.

(2) To generate a specified sum of money for a specific goal in life.
(3) To make a provision for an uncertain future.

One of the important reasons why one needs to invest wisely is to meet the cost of
Inflation. Inflation is the rate at which the cost of living increases.

The aim of investments should be to provide a return above the inflation rate to
ensure that the investment does not decrease in value.

7
 INVESTMENT OBJECTIVES

The main objectives are increasing the rate of return and reducing the risk. Other
objectives like safety, liquidity and hedge against inflation can be considered as subsidiary
objectives.

INVESTMENT ALTERNATIVES

A bewildering range of investment alternatives is available. They fall into two

broad categories, viz. financial assets and real assets. Financial assets are paper claims on
some issuer such as the government or a corporate body. Real assets are represented by
tangible assets like residential house, gold, precious stones etc. although, the rapid change in
the world of investment leads to the creation of new investment alternatives.

(1) EQUITY SHARES

Equity shares are commonly referred to common stock or ordinary shares. Even though the
words shares and stocks are interchangeably used, there is a difference between them. Share
capital of a company divided into a number of small units of equal value called shares. The
term stock is the aggregate of a members fully paid up shares of equal value merged into one
fund. It is a set of shares put together in a bundle.

Equity shares (referred to as common shares in U.S.A.) represent the ownership position in a
company.

The holders of Equity shares called shareholders (or stockholder in U.S.A.) are the legal
owners of the company.

Equity shareholders collectively own the company. They bear the risk and enjoy the rewards
of ownership.

Equity shares are the source of permanent capital since they do not have a maturity date.

The par value of the equity shares is generally Rs.10 & Rs.100. The par value stated in the
memorandum.

Equity share holders have some rights according to section 85 (2) of the Companies Act
1956:

8
1. Right to vote at the general body meetings of the company.

2. Right to control the management of the company.

3. Right to share in the profits in the term of dividends and bonus shares.

4. Right to claim on the residual after repayment of all the claims in the case of winding up
of the company.

5. Right to apply to court if there is any discrepancy in the rights set aside.

(2) MUTUAL FUNDS

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 capital market
instruments such as 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. Thus a Mutual Fund is the most suitable investment
for the common man as it offers an opportunity to invest in a diversified, professionally
managed basket of securities at a relatively low cost. The flow chart below describes broadly
the working of a mutual fund:

9
The mutual funds are broadly classified into open-ended scheme and close-ended scheme.

A. Open- Ended Funds

An open-end fund is one that is available for subscription all through the year. These do not
have a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value
("NAV") related prices. The key feature of open-end schemes is liquidity.

B. Closed- Ended Funds

The fund is open for subscription only during a specified period. Investors can invest in the
scheme at the time of the initial public issue and thereafter they can buy or sell the units of
the scheme on the stock exchanges where they are listed. The demand and supply factors
influence the prices of the units.

The open ended and close ended schemes are classified on the basis of their objectives. Some
of them are given below:
A. Growth scheme
B. Income scheme
C. Balanced scheme
D. Money market scheme
E. Tax savings scheme
F. Index scheme

(3) LIFE INSURANCE

Life insurance is a contract for payment of a sum of money to the person assured on the
happening of event insured against. Usually the contract provides for the payment of an
amount on the date of maturity or at specified dates at periodic intervals or if unfortunate
death occurs. Among other things, the contracts also provide for the payment of premium
periodically to the corporation by the policy holders. Life insurance eliminates risk. The basic
customer needs met by life insurance policies are protection and savings. Policies that are
designed as savings contracts allow the policyholder to build up funds to meet specific
investment objectives such as income in retirement or repayment of a loan. In practice, many
policies provide a mixture of savings and protection benefits. The major advantages of life
insurance are:

a. Protection

b. Easy payments

c. Liquidity

10
 d. Tax relief

(4) GOVERNMENT SECURITIES:

Debt securities issued by the central government, state government, and quasi-government
agencies are referred to as government securities or gilt-edged securities.

Government securities have maturities ranging from 3-20 years and carry interest rates that
usually vary between 8 and 10 percent.

Even though these securities carry some tax advantages, they have traditionally not appealed
to individual investors because of low rates of interest and long maturities and somewhat
illiquid retail markets.

Banks, financial institutions, insurance companies, and provident funds mainly because of
certain statutory compulsions typically hold them.

As Government guaranteed security is a claim on the government, it is secured financial

instrument, which guarantees the income and the capital.

The rate of interest on these securities is relatively lower because of their high liquidity and
safety.

11
ONLINE TRADING

The net is used as a medium of trading in internet trading. Orders are communicated to the
stock exchange through website. Internet trading started on 1st April 2000 with 79 members
seeking permission for online trading. The SEBI committees on internet based securities
trading services has allowed the net to be used as an Order Routing System (ORS) through
registered stock brokers on behalf of their clients for execution of transaction.

Under the ORS the client enters his requirements (security, quantity, price, buy/sell) in
brokers site. They are checked electronically against the clients account and routed
electronically to the appropriate exchange for execution by the broker. The client receives a
confirmation on execution of the order. The customers portfolio and ledger accounts get
updated to reflect the transaction.

The user should have the user id and password to enter into the electronic ring. He should
also have a Demat account and bank account. The system permits only registered client to
log in using user ID and password. Order can be placed using place order window of the
website.

1. The client has to enter stock code and other parameters such as quantity and
price of the scrip on the place order window.
2. The client can review the order placed by clicking the review option. He can
also reset to clear the values.
3. Satisfactory orders are sent by clicking the Send option.
4. The client receives an order confirmation message with order number and
value of the order.
5. If the order is rejected by the broker or stock exchange for certain reasons
such as invalid price limit, a related message appears at the bottom of the
screen. The time taken to execute the order is 10 seconds.
6. When the trade is executed, the broker asks for the transfer of funds by the
investor to his account. Stocks are credited/debited according to the buy/sell
order in the demat accounts.

Internet trading provides total transparency between a broker and an investor in the
secondary market. In the open outcry system, only the broker knew the actually transacted
price. With online trading investors can see themselves the price at which the deal takes
place. Confirmation and execution of the trade reaches the investor within the least possible
time, within 30 seconds. Instant feedback is available about the execution.

List of the some of the websites offering online trading:

1. www.sharekhan.com
2. www.icicidirect.com
3. www.jpmorgan.com

12
 4. www.5paise.com
5. www.kotakstreet.com

FEATURES OF ONLINE TRADING

1. SPEED

Speed is the most important thing in online trading. As price fluctuates in every seconds, so it
becomes necessary for a trader to place the order at correct time. As in online trading it
hardly takes 10 seconds to place the order and for execution of trade it will take 30 seconds.
Thus speed is the important feature in online trading. Time matters a lot in stock market.

2. SECRECY

The order which a trader places, no one knows other than broker. As it is a faceless. So one
who wants to make secret contract, for them online trading is very important. It is a secret
contract for traders and brokers.

3. EASE IN PAYMENT AND RECEIPT

In online trading as we know that a trader has to maintain a separate bank a/c for that. It is a
simple procedure. Nowadays net banking facilities are used. So it becomes too much easy to
make payment or receive in case of online trading.

4. DIGITAL CONTRACT

It is a contract note between investor and company and broker is the intermediary. Digital
contract means the contract will be received on mail. There is no need to get physical bill.
Whenever a investor buys or sells contract, he will get details of that contract in form on
digital. And due to these he can know the brokerage, tax charged and the net amount which
he had received.

5. QUARTERLY STATEMENT

In online trading an investor will also receive quarterly statement. It is a summarize

statement of contracts made within 3 months. So an investor will get this statement every 3
months.

13
6. ONLINE FUND TRANSFER FACILITY

In online trading, an investor is having bank a/c. Nowadays, net banking facility are used.
The funds can be transferred from bank a/c to dp a/c in 5 to 10 minutes and if a investor
wants to withdraw from dp a/c then he will get in 4 to 6 hours. So in these there is no need to
go to bank and transfer the funds. So it is one of the important facilities in online trading.

7. WEB BASED PRODUCT

It is totally a web based product. In this system, there is need of internet. An investor can do
trade on web sites. And this web sites also gives useful information to an investor. It will give
news regarding various company affairs, NSE, BSE, research report, stock analysis.

14
 OFFLINE TRADING

Before 1st April 2000, there was only offline trading. In these an investor has to maintain
an account from broker. An investor can do trade either by going to broker or by doing
call to broker. There is no internet in these. In these the rights are with broker. An investor
alone cant do anything. An investor is totally dependent on the broker. There is one
benefit in these type of trading is that exposure limit is much more as compared to online
trading.

In offline trading in the initial period, an investor has to give only opening charges
cheque and there is no need to pay any margin amount. The credit worthiness of investor
or his turnover will increase his credit limit and due to these an investor gets benefit to
trade more and so he can earn good amount of profit. The brokerages also differ to online
trading. An investor gets certain attractive benefits if its volume is large.

The offline traders get more services from broker but investors are not having any rights
with them. The receipt and payment is done mostly by cheques as there is no net banking
facility. An investor has to inform to broker regarding the cheque to be issued or paid. In
these offline trading investor can use the credit limit by just signing the cheque, may be
of one day later also. The trader gets the daily report from the broker. The trader gets a
contract note from the broker at the end of trading day. It was much popular till the date
there was no online trading but nowadays it has been decreased. In these the investor are
not knowing that exactly at which price trade has been executed in case of doing phone to
broker, so they will come to know only when broker will inform them. Now, we should
look some of the features of offline trading.

FEATURES OF OFFLINE TRADING

1. SIMPLE

It is the simplest form to do trade. As we know that investor can do trade just by doing
call or either he can take visit of the broker. So a computer illiterate can also do trade due
to these type of trading. And if there is any query then it can be easily solved with broker
as they may be having good relations. Thus it is very much simple to do trade in offline
trading.

2. EASY TO UNDERSTAND AND OPERATE

As it is the simplest to trade and so it becomes easy to understand and operate. It has been
seen that mostly old persons are having offline account; it is because they like these and
the only reason is that is easy to understand and operate. They can operate it with the help
of phone or visiting there. In there investment decision they are not alone as with then
broker is there. So its easy to operate.

15
3. DIRECT CONTACT

In offline trading the investment decision are not alone taken by the investor but broker is
with investor. As there is face to face contact, or we can say that there is direct contact
between investor and broker. So due to these all the doubts or queries can be easily
resolved. Due to direct contact many of the problems of an investor are removed and so
they can do trade easily.

4. MORE RELIABLE

Investors are reliable on broker. They can depend on broker and get the good services
from them. Broker advices them to buy or sell a particular security and so an investor
faces no difficulty in doing trade.

5. CONVENIENT

It is convenient for investor to use this system. It has been seen that for old or retired
people it becomes easy to trade with offline trading system. The persons with whom there
is no time and those persons who do not know anything about the market can get the
great services from broker. Thus, it is convenient.

6. MORE SERVICES FROM BROKER

An investor can get more services from broker. Whenever market is positive or negative,
broker recommends to investor that whether to buy or not. Broker gives regular tips to
investor regarding investment. The exposure of investor is in hands of broker. So it will
give more credit exposure to those investors whose volume is high and they will get even
reduction in brokerages. In offline trading the biggest benefit is regarding exposure, so
that an investor can do more trade and earn good margin of profit. Thus, an offline trader
gets more services from the broker.

16
RESEARCH METHODOLOGY

17
 RESEARCH METHODOLOGY

Research Problem:

Since this is the era of computers and the development in connectivity also has affected the
field of share market. Its time to leave the olden ways of offline trading and move on towards
the online trading methods which are gaining importance. It is better o have comparison
between the pros and cons of both and to find out which is better. We would also try to find
out any possible measures to better the online trading method.

Research Objective:

Primary Objective:

To find which is better Online trading or Offline training.

Secondary Objective:

To find what are the possible features looked forward while selecting the particular
method for trading.
To find the lacking areas of both online and offline trading.
To find ways to improve the online trading so as to achieve consistency with the
current going trend.

Research Design:

I have used the Descriptive Research Design for the purpose of survey as it enable me to
describe the characteristics of a particular individual or a group of people and their tendency
towards something and in our case it could be the online and offline trading.

Sampling Method:

I have used the method of simple probability random sampling as it would give better idea
about their thoughts on online and offline trading and the features they look forward for.

Sample Size:

It would be better to have a sample of 200 people to have better idea and represenatativeness
of the population being surveyed.

18
Research Instrument:

A detailed questionnaire had used for purpose survey and it is attached with this proposal.

DATA ANALYSIS AND

INTERPRETATION

19
 DATA ANALYSIS AND INTERPRETATION

Q1. Rate the following trading system, where 1 is Very poor and 5 is Very good.

Objective: To find out preference of trading system and to find out which is better
online trading or offline trading.

Online:

Frequency Table:

Frequency Percent

Very poor 22 11.0

Poor 19 9.5

Good 21 10.5

20
 Very Good 138 69.0

Graph:

Inference:-

We can see from the table and graph that people like to do online trading as most of the
people are interested in these type of trading. We can see that out of 200 people 138 which
means near about 69% are of the view that online trading is the best. It means total 159 are
there for online trading as there are 21 people in good.

21
Offline

Frequency Table

Frequency Percent

Very Poor 103 51.5

Poor 55 27.5

Neutral 1 .5

Good 5 2.5

Very Good 36 18.0

Total 200 100.0

Graph

22
Inference:-

We can see from the table and graph that people dont like to do off line trading as out of 200
only 36 says that its excellent and 103 are not preferring to do offline trading. So total comes
out 41 for offline trading.

Q2. I agree that I am satisfied with the current services I am using.

Objective: To know their satisfaction level with the current services they are using.

Satisfied with services

Frequency Table

Frequency Percent

Strongly Disagree 1 .5

Disagree 1 .5

Neutral 3 1.5

Agree 95 47.5

23
Strongly Agree 100 50.0

Total 200 100.0

Graph

Inference:

We can see from the table and graph that mostly all people strongly satisfied with the
services which they are using.

24
Q3. Rank the features of online trading according to your preference.

Objective:

To know the features looked forward while selecting online trading and to find out the
lacking areas of online trading.

Speed
Frequency Table

Frequency Percent

offline 41 20.5

1 33 16.5

2 21 10.5

3 65 32.5

4 19 9.5

5 6 3.0

6 8 4.0

25
7 4 2.0

8 3 1.5
Inference:

In the above table 41 is for the investors who are doing offline trading. We can see that out of
159 people, 65 have given rank 3 to speed. So, it indicates that speed got 3rd rank and thus it
is 3rd preference of online traders.

Graph

70

60

50

40

30

20

10
Count

0
0 1 2 3 4 5 6 7 8

Speed

26
Frequency Table

Secrecy

Inference: Frequency Percent

In the above table we can see that 41 people

are the persons who offline 41 20.5 are offline traders. We
can see that out of 159 people, 56 people
1 17 8.5
have given 4th rank to secrecy. So, it
indicates that secrecy got 4th rank and thus
2 19 9.5
it is the 4th preference of online traders.
3 23 11.5

4 56 28.0

5 16 8.0

6 14 7.0

7 9 4.5

8 5 2.5

27
 Ease in payment and receipt

Frequency Percent

offline 41 20.5

1 5 2.5

2 14 7.0

3 22 11.0

4 29 14.5

5 38 19.0

6 42 21.0

7 7 3.5

8 2 1.0

Total 200 100.0

28
Graph

50

40

30

20

10
Count

0
0 1 2 3 4 5 6 7 8

Ease in payment and receipt

Inference:

In the above table 41 is for the investors who are doing offline trading. We can see that out of
159 people, 38 have given rank 5 to ease in receipt and payment. So, it indicates that ease in
receipt and payment got 5th rank and thus it is 5th preference of online traders.

29
 Digital contract

Frequency Percent

offline 41 20.5

2 2 1.0

3 5 2.5

4 7 3.5

5 16 8.0

6 32 16.0

7 70 35.0

8 27 13.5

Total 200 100.0

30
Graph

80

60

40

20
Count

0
0 2 3 4 5 6 7 8

Digital contract

Inference:

In the above table 41 is for the investors who are doing offline trading. We can see that out of
159 people, 70 have given rank 7th to digital contract. So, it indicates that digital contract
got 7th rank and thus it is 7th preference of online traders.

31
 Quarterly statement

Frequency Percent

offline 41 20.5

1 2 1.0

2 4 2.0

3 5 2.5

4 10 5.0

5 37 18.5

6 43 21.5

7 38 19.0

8 20 10.0

Total 200 100.0

32
Inference:

In the above table 41 is for the investors who are doing offline trading. We can see that out of
159 people, 43 have given rank 6th to quarterly statement. So, it indicates that quarterly
statement got 6th rank and thus it is 6th preference of online traders.

Graph

50

40

30

20

10
Count

0
0 1 2 3 4 5 6 7 8

Quaterly statement

33
 Online fund transfer facility

Frequency Percent

offline 41 20.5

1 71 35.5

2 31 15.5

3 18 9.0

4 8 4.0

5 15 7.5

6 6 3.0

7 4 2.0

8 6 3.0

Total 200 100.0

Graph

34
 80

60

40

20
Count

0
0 1 2 3 4 5 6 7 8

Online fund transfer facility

Inference:

In the above table 41 is for the investors who are doing offline trading. We can see that out of
159 people, 71 have given rank 1st to online fund transfer facility. So, it indicates that online
fund transfer facility got 1st rank and thus it is 1stpreference of online traders.

35
 Trading anywhere

Frequency Percent

offline 41 20.5

1 28 14.0

2 67 33.5

3 7 3.5

4 21 10.5

5 15 7.5

6 7 3.5

7 14 7.0

Total 200 100.0

36
 80

70

60

50

40

30

20

10
Count

0
0 1 2 3 4 5 6 7

Trading anywhere

Inference:

In the above table 41 is for the investors who are doing offline trading. We can see that out of
159 people, 67 have given rank 2nd to trading anywhere. So, it indicates that trading
anywhere got 2nd rank and thus it is 2nd preference of online traders.

37
 Web based product

Frequency Percent

offline 41 20.5

1 3 1.5

2 1 .5

3 14 7.0

4 9 4.5

5 16 8.0

6 7 3.5

7 13 6.5

8 96 48.0

Total 200 100.0

Graph

38
 120

100

80

60

40

20
Count

0
0 1 2 3 4 5 6 7 8

Web based product

Inference:

In the above table 41 is for the investors who are doing offline trading. We can see that out of
159 people, 96 have given rank 8th to web based product. So, it indicates that web based
product got 8th rank and thus it is 8th preference of online traders.

39
Q4 Rate the following on the basis of your preference where 1 is most not important
and 5 is most important.

Objective:

To find what are the possible features looked forward while selecting the particular method
for trading.

To find ways to improve the online trading so as to achieve consistency with the current
going trend.

Speed

Frequency Table

Frequency Percent

Offline 41 20.5

Not important 2 1.0

Neutral 7 3.5

Important 9 4.5

Most important 141 70.5

Total 200 100.0

Graph

40
Inference:

We can see from the table and graph that all people who are doing online trading they like
speed or they are giving more preference to speed. Out of 200, 141 people means 70.5% says
that speed is most important. There are 41 people who are in offline.

Secrecy

41
Frequency Table

Frequency Percent

Offline 41 20.5

Not important 1 .5

Neutral 29 14.5

Important 6 3.0

Most important 123 61.5

Total 200 100.0

Inference:

42
We can see from the table and graph that people also give more preference to secrecy as near
about 61% are of the view that secrecy is more important for then in online trading and 20%
are of the view that secrecy is not important. There are 41 people who are in offline.

Ease in payment and receipt

Frequency Table

Frequency Percent

Offline 41 20.5

Most not important 1 .5

43
 Not important 6 3.0

Neutral 42 21.0

Important 20 10.0

Most important 90 45.0

Total 200 100.0

Graph

44
Inference:

We can see from the table and graph that mean is 3.35 only. Out of 200 only 90 means 45 %
give preference to these which shows that it is not of much important for the online traders.
There are 41 people who are in offline.

Digital contract

Frequency Table

Frequency Percent

Offline 41 20.5

Most not important 2 1.0

Not important 65 32.5

Neutral 45 22.5

Important 31 15.5

45
Most important 16 8.0

Total 200 100.0

Graph

Inference:

46
We can see from the table and graph that people are not giving preference to digital contract
as 32% are of the view that is not important for them and only 8% are there who are saying
that digital contract are most important. There are 41 people who are in offline.

Quarterly statement

Frequency Table

Frequency Percent

Offline 41 20.5

Most not important 14 7.0

Not important 44 22.0

47
 Neutral 22 11.0

Important 24 12.0

Most important 55 27.5

Total 200 100.0

Graph

Inference:

48
We can see from the table and graph that people are also giving less preference to quarterly
statement as only 27.5% are saying that they like these while 22% are saying they dont like
these and there are 41 people who are in offline

Online fund transfer facility

Frequency Percent

Offline 41 20.5

Not important 3 1.5

Neutral 6 3.0

Important 18 9.0

Most important 132 66.0

49

Total 200 100.0

Graph

Inference:

We can see from the table and graph that people give more priority to on line fund transfer
facility. There are 41 people who are in offline.
50
Trading anywhere

Frequency Percent

Offline 41 20.5

Not important 5 2.5

Neutral 8 4.0

Important 15 7.5

Most important 131 65.5

Graph

51
Inference: We can see from the table and graph that near about 65.5% people give
preference to trading anywhere. Mostly all are giving much importance to trading anywhere.
There are 41 people who are in offline.

Web based product

Frequency Table

Frequency Percent

Offline 41 20.5

Most not important 30 15.0

Not important 32 16.0

Neutral 26 13.0

Important 26 13.0

52
 Most important 45 22.5

Total 200 100.0

Graph

Inference:

We can see from the table and graph that web based product is not of so much importance. In
these some are giving much importance while others are of the view that web based product
is not important. We can see from the graph it showing complex bar pattern and so it
becomes difficult to find out certain result. There are 41 people who are in offline.

53
Q5. Rank the features of offline trading according to your preference.

Simple

Frequency Table

Frequency Percent Cumulative

Percent

Online 159 79.5 79.5

1 21 10.5 90.0

2 12 6.0 96.0

3 3 1.5 97.5

4 3 1.5 99.0

5 1 .5 99.5

6 1 .5 100.0

Total 200 100.0

Graph

54
 Simple
200

100
Frequency

0
0 1 2 3 4 5 6

Simple

Inference:

We can see from the table that there are 41 offline traders and 159 are online traders. Out of
41, there are 21 people who have given 1st rank to simple. 1st rank goes to simple; it means
that 1st preference is given to simple in offline trading.

Easy to understand and operate

Frequency Table

Frequency Percent Cumulative

Percent

Online 159 79.5 79.5

1 3 1.5 81.0

2 5 2.5 83.5

3 15 7.5 91.0

4 7 3.5 94.5

5 8 4.0 98.5

6 3 1.5 100.0

55
 Easy to understand and operate
200

100
Frequency

0
0 1 2 3 4 5 6

Easy to understand and operate

Inference:

We can see from the table that there are 41 offline traders and 159 are online traders. Out of
41, there are 15 people who have given 3rd rank to easy to understand and operate.
3rdrank goes to easy to understand and operate, it means that 3rd preference is given to
easy to understand and operate in offline trading.

56
Direct contact

Frequency Table

Frequency Percent Cumulative Percent

Online 159 79.5 79.5

1 1 0.5 80.0

2 5 2.5 82.5

3 3 1.5 84.0

4 10 5.0 89.0

5 14 7.0 96.0

6 8 4.0 100.0

Total 200 100.0

Graph

Direct contact
200

100
Frequency

0
0 1 2 3 4 5 6

Direct contact

Inference:

57
We can see from the table that there are 41 offline traders and 159 are online traders.

Out of 41, there are 14 people who have given 5th rank to direct contact.

5th rank goes to direct contact; it means that 5th preference is given to direct contact in
offline trading.

More reliable

Frequency Table

Frequency Percent Cumulative

Percent

Online 159 79.5 79.5

1 1 0.5 80.0

2 3 1.5 81.5

3 7 3.5 85.0

4 8 4.0 89.0

5 5 2.5 91.5

6 17 8.5 100.0

Graph

58
 More reliable
200

100
Frequency

0
0 1 2 3 4 5 6

More reliable

Inference:

We can see from the table that there are 41 offline traders and 159 are online traders.

Out of 41, there are 17 people who have given 6th rank to more reliable.

6thrank goes to more reliable, it means that 6th preference is given to more reliable in
offline trading.

Convenient

59
Frequency Table

Frequency Percent Cumulative

Percent

Online 159 79.5 79.5

1 5 2.5 82.0

2 4 2.0 84.0

3 4 2.0 86.0

4 7 3.5 89.5

5 10 5.0 94.5

6 11 5.5 100.0

Total 200 100.0

Graph

60
 Convenient
200

100
Frequency

0
0 1 2 3 4 5 6

Convenient

Inference:

We can see from the table that there are 41 offline traders and 159 are online traders.

Out of 41, there are 7 people who have given 4th rank to simple and cumulative is 89.5%.

4th rank goes to convenient; it means that 4th preference is given to convenient in offline
trading.

More services from broker

61
Frequency Table

Frequency Percent Cumulative Percent

Online 159 79.5 79.5

1 10 5.0 84.5

2 11 5.5 90.0

3 9 4.5 94.5

4 6 3.0 97.5

5 4 2.0 99.5

6 1 0.5 100.0

More services from broker

200

100
Frequency

0
0 1 2 3 4 5 6

More services from broker

Inference:

We can see from the table that there are 41 offline traders and 159 are online traders.

62
Out of 41, there are 11 people who have given 2nd rank to more services from broker.

2ndrank goes to more services from broker; it means that 2nd preference is given to more
services from broker in offline trading.

Q6. Rate how much you are satisfied where 1 is strongly dissatisfied and 5 is strongly
satisfied.

Objective:

63
To find out the lacking areas of off-line trading.

Simple

Frequency Table

Frequency Percent

Online 159 79.5

Dissatisfied 1 0.5

Satisfied 4 2.0

Strongly satisfied 36 18.0

Graph

64
Inference:

We can see that people are strongly satisfied with simplicity which is there in offline trading
and in these graph we can see that 0 is for the persons who are doing online trading.

We can say that people are strongly satisfied with simplicity of offline trading. There are 159
people who are in online.

65
Easy to understand and operate

Frequency Table

Frequency Percent

Online 159 79.5

Dissatisfied 3 1.5

Neutral 5 2.5

Satisfied 8 4.0

Strongly satisfied 25 12.5

Total 200 100.0

66
Inference:

We can see that in offline trading people are strongly satisfied with the easy to understand
and operate.

In these also 0 is for the people who are doing online trading. So we can say that people are
strongly satisfied with as it becomes easy for a person to operate.

Direct contact

Frequency Table

Frequency Percent

Online 159 79.5

Dissatisfied 2 1.0

67
 Neutral 11 5.5

Satisfied 20 10.0

Strongly satisfied 8 4.0

Total 200 100.0

Inference:

We can say that in these people are not strongly satisfied but still they satisfied with direct
contact. In these graph also 0 is for the people who were doing online trading. So in these we
can say that in offline trading people are satisfied with direct contact.

More reliable

Frequency Table

Frequency Percent

Online 159 79.5

Dissatisfied 6 3.0

68
 Neutral 12 6.0

Satisfied 16 8.0

Strongly satisfied 7 3.5

Total 200 100.0

Graph

Inference:

We can see that more reliability is not seen in offline trading among offline traders. We can
say that people are not satisfied with these in offline trading. There are many people who are
on the neutral side. There are 159 people who are in online.

Convenient

Frequency Table

69
 Frequency Percent

Online 159 79.5

Dissatisfied 7 3.5

Neutral 10 5.0

Satisfied 11 5.5

Strongly satisfied 13 6.5

Total 200 100

70
Inference:

We can say that in offline trading many conveniences is found as people who satisfied
strongly in these are more than others. There are 159 people who are in online

71
More services from broker

Frequency Table

Frequency Percent

Online 159 79.5

Dissatisfied 2 1.0

Satisfied 2 1.0

Strongly satisfied 37 18.5

Total 200 100.0

Graph

72
Inference:

We can see from the above graph and table that mostly all the people are strongly satisfied
with these. As graph clearly says that people are strongly satisfied with these which means
they are getting more services from broker. And in these graph also 0 is for the people who
are in online trading. There are 159 people who are in online

73
Q7. What kind of investor are you?

Type of investor

Frequency Table

Frequency Percent

cant say 1 .5

short term 93 46.5

long term 106 53.0

Total 200 100.0

Graph

74
 Type of investor
60

50

40

30

20
Percent

10

0
cant say short term long term

Type of investor

Inference:

We can say that long term investors are more as it is 53% and short term are 46%.

75
Crosstab between age and type of investor

Age * Type of investor Crosstabulation

Type of investor

long term Total

cant say short term

People 36 8 44
20 to 25 years
% within Age 81.8% 18.2% 100.0%

People 1 36 23 60
26 to 30 years
% within Age 1.7% 60.0% 38.3% 100.0%
Age
People 12 38 50
31 to 40 years
% within Age 24.0% 76.0% 100.0%

People 9 37 46
40 above
% within Age 19.6% 80.4% 100.0%

People 1 93 106 200

Total
% within Age .5% 46.5% 53.0% 100.0%

76
Among 20 to 25 years 81.8% like to do short term investment.

Among 26 to 30 years 60% like to do short term investment.

Among 31 to 40 years 76% like to do long term investment.

Above 40 years 80.4% like to do long term investment.

Age

Frequency Table

Frequency Percent

20 to 25 years 44 22.0

26 to 30 years 60 30.0

31 to 40 years 50 25.0

40 above 46 23.0

Total 200 100.0

77
Graph

Age
40

30

20

10
Percent

0
20 to 25 years 26 to 30 years 31 to 40 years 40 above

Age

78
Crosstab between age and online trading

Crosstab

Online

Total
most prefer
most not prefer not prefer prefer

People 4 40 44

20 to 25 years

% within Age 9.1% 90.9% 100.0%

People 2 3 8 47 60
26 to 30 years
% within Age 3.3% 5.0% 13.3% 78.3% 100.0%
Age

People 8 3 5 34 50
31 to 40 years
% within Age 16.0% 6.0% 10.0% 68.0% 100.0%

People 12 13 4 17 46
40 above
% within Age 26.1% 28.3% 8.7% 37.0% 100.0%

People 22 19 21 138 200

Total
% within Age 11.0% 9.5% 10.5% 69.0% 100.0%

It has been seen that age between 20 to 25 years and 26 to 30 years people prefer to do online
trading.

Age above 40 years prefers to do offline trading.

79
Age between 20 to 25 years out of 44, 40 most preferred to do online trading.

Age between 26 to 30 years out of 60, 47 most prefer to do online trading.

Age between 31 to 40 years out of 50, 34 most prefer to do online trading.

Age above 40 years, out of 46, 25 prefer to do offline trading.

Occupation

Frequency Percent

student 24 12.0

service 84 42.0

business owner 73 36.5

retired 19 9.5

Total 200 100.0

80
 occupation
50

40

30

20

10
Percent

0
student service business ow ner retired

occupation

81
Cross tab between online trading and occupation

occupation * Online Crosstabulation

Online

Total
most prefer
most not prefer not prefer prefer

People 1 23 24
Student
% within occupation 4.2% 95.8% 100.0%

People 6 3 12 63 84
Service
% within occupation 7.1% 3.6% 14.3% 75.0% 100.0%
occupation
People 5 7 9 52 73
business owner
% within occupation 6.8% 9.6% 12.3% 71.2% 100.0%

People 11 8 19
Retired
% within occupation 57.9% 42.1% 100.0%

People 22 19 21 138 200

Total
% within occupation 11.0% 9.5% 10.5% 69.0% 100.0%

In students out of 24, 23 most preferred to do online trading whereas 1 preferred to do

offline trading.

In service out of 84, 63 most preferred and 12 prefer to do online trading whereas 9
preferred to do offline trading.

82
In business owner out of 73, 52 most preferred and 9 prefer to do online trading whereas 12
prefer to do offline trading.

In retired out of 19, all prefer to do offline trading.

Income

Frequency Percent

less than 10000 45 22.5

from 10001 to 20000 71 35.5

from 20001 to 30000 50 25.0

from 30001 to 40000 22 11.0

Inference:
from 40001 to 50000 10 5.0
We can see from the table and
graph that out of 50001 plus 2 1.0 200, 71
respondents fall from 10001 to
20000 which is Total 200 100.0 around 35.5%.
There is only 1% for income more than 50000.

83
 FINDINGS

The findings of my research study are as follows:

1. Investors prefer to do online trading more than offline trading.

2. Respondents are satisfied with the services.

3. In online trading, they give more preference to online fund transfer facility, trading
anywhere and speed.

4. In offline trading, they give more importance to simplicity, more services from
broker, and easy to understand and operate.

5. 106 prefer to do long term investment, 93 prefer to do short term and 1 cant say.

6. Between 20 to 25 years, 81.8% like to do short term investment.

7. Above 40 years 80.4% like to do long term investment.

8. Age between 20 to 25 years and 26 to 30 years people prefer to do online trading.

9. Age above 40 years prefers to do offline trading.

84
 RECOMMENDATIONS

1. In online trading, more credit exposure should be given same as given in off-line
trading.

2. In offline trading, brokers should be faithful with their clients.

3. In online trading, clients should be given proper demo.

4. Retired people should be guided as it has been seen that they are doing off-line
trading and not online trading.

5. Retired people should be made aware with the benefits of online trading so they may
be attracted towards online trading.

85
 CONCLUSION

1. In online trading, as respondents are getting online fund transfer facility, more speed
is there and they can trade from anywhere.

2. In offline trading, respondents are getting benefit of simplicity and more services
from broker.

3. Respondents have preferred more to do online trading as compared to offline

trading.

4. Retired people have preferred to do off-line trading.

5. Students have mostly preferred to do online trading.

6. Online trading is gaining importance due to online fund transfer facility, speed and
trading from anywhere.

86
 BIBLIOGRAPHY

Books:

By S P Gupta, Statistical Methods, Thirty Fifth Revised Edition (2007), Sultan

Chand & Sons Education Publishers, New Delhi

Websites:

www.sharekhan.com
www.amfi.com
www.investopedia.com
www.nseindai.com
www.bseindia.com

87
 APPENDIX
QUESTIONNAIRE
INSTRUCTIONS:

1. Please give true and correct information.

2. This data is collected and used for the research purpose and will be used by the
educational institutes.
3. Please tick () in the box as asked.
4. Give the explanation where ever required.
5. The answers/information given by you will be kept secret and will not be disclosed
under any circumstances to anyone.

1) Name: ______________________

Email ID: _____________

Age:
Below 20 years 20 to 25 years
26 to 30 years 31 to 40 years
40 years above

2) Gender:
MALE FEMALE

3) Occupation:

STUDENT SERVICE

BUSINESS OWNER RETIRED

4) Income:

Less than 10000 From 10001 to 20000

From 20001 to 30000 From 30001 to 40000
From 40001 to 50000 50001 plus

5) In which of these financial instruments do you invest into?

88
 Shares Mutual Funds
Bonds Others

6) Which type of trading you prefer?

Online Offline

7) Rate the following trading system on a scale of 1-5 where 1 is very

Poor and 5 is very good according to your liking.

Rating 1 2 3 4 5

Online

Offline

8) I agree that I am satisfied with the services I am currently using.

Strongly agree Agree

Neutral Disagree

Strongly Disagree

9) If agree for online then what are the things you specifically like
in it, rank them according to your preference.

Speed ___________
Secrecy ___________
Ease in payment and receipt. ___________
Digital contract ___________
Quarterly statement ___________
On line fund transfer facility ____________
Trading anywhere ____________
Web based product ____________
Others. Please Specify ____________

89
 10) Now rate the following on the basis of the preference on a Scale
Of 1-5 where 1 is most not important and 5 is most important.

PARTICULARS 1 2 3 4 5

Speed

Secrecy

Ease in payment
and receipt

Digital contract

Quarterly
statement

Online fund
transfer facility

Trading
anywhere

Web based
product

Others Please
specify

11) If you agree for offline then what are the things specifically looked for by you in it,
rank them in order so that I can know your preference.

Simple ______________
Easy to understand and operate ______________
Direct contact ______________
More Reliable ______________
Convenient ______________
More Services from the broker ______________
Others ______________

90
12) If you prefer offline trading then rate the following on a scale of 1-5 where 1 is strongly
dissatisfied and 5 is strongly satisfied according to your preference.

PARTICULARS 1 2 3 4 5

Simple

Easy to
understand and
operate

Direct contact

More reliable

Convenient

More services
from the broker

Others

13) What kind of investor are you?

Long term ___________

Short term ___________
Cant say ___________

Thank you

91
Thank you

92