Investments in Financial Markets

INTRODUCTION
India is a developing country. Now days many people are interested to invest in
financial markets especially on equities to get high returns, and to save tax in honest way.
Equities are playing a major role in contribution of capital to the business from the
beginning. A financial market is a market in which people and entities
can trade financial securities, commodities, and other fungible items of value at
low transaction costs and at prices that reflect supply and demand. Securities include stocks
and bonds, and commodities include precious metals or agricultural goods.
The financial markets can be divided into different subtypes:
 Capital markets which consist of:
 Stock markets, which provide financing through the issuance of shares

or common stock, and enable the subsequent trading thereof.
 Bond markets, which provide financing through the issuance of bonds, and
enable the subsequent trading thereof.
 Commodity markets, which facilitate the trading of commodities.
 Money markets, which provide short term debt financing and investment.
 Derivatives markets, which provide instruments for the management

of financial risk.
 Futures markets, which provide standardized forward contracts for trading products
at some future date; see also forward market.
 Insurance markets, which facilitate the redistribution of various risks.
 Foreign exchange markets, which facilitate the trading of foreign exchange.
11
NEED OF THE STUDY
A study on investment in financial markets is required for the following reasons:
To keep the value of your money from inflation
If you think wisely and look around with as an observer, you can easily understand that
the money you have today will not have the same value tomorrow. If you try to invest
your money with high return than the rate of inflation, your money value will grow.
To get a good return from your idle money
When you keep your money ideally in a savings account, you won’t get much benefit.
For this purpose you can invest wisely in any investment scheme which has no tax for
the income from such investment, or the investment with less taxability or an investment
with high return. If you have some idle money or the money you should not need in near
future, invest in any long term high return investments and make grow your money.
To satisfy your future financial goals
You have to accomplish so many financial goals such as marriage of self or children,
education of self or children, buying a residential accommodation, Good medical facility
to you and your family members, good retirement income etc. etc. For satisfying
these financial goals also you have to invest money from your existing source of income.
So you must invest from your counted bread, even if it is only enough for your daily
needs. Then you should grow an investing habit which is helpful for your future financial
needs.
Provide enough money for meeting uncertain future needs
Some financial needs cannot be predicted early such as medical treatment of any critical
illness or accident, untimely death of the bread earner of your family etc. and even life
after retirement also uncertain up to a certain extent. So you have to make enough
provision for meeting such uncertain needs. Insurance and retirement schemes will help
you in this case. The present study tries to evaluate the different alternatives available in
the market and the investor’s awareness and preferences towards them.
2
SCOPE OF THE STUDY
The primary objective was to analysis the market and find out the potential
customer and motivate or promote them to invest their money in modern Investment plan
rather than traditional Investment plan.
The project covers the investment patters in financial markets. For better
understanding, various strategies with different situations and actions have been given.
It includes the data collected in the recent years and also the investor’s approach towards
investment in financial markets in the recent years.
This study is aimed at providing useful insights so as to give an idea on

investments in financial markets
3
OBJECTIVES OF THE STUDY
 To do the comparative analysis of different options in financial markets.
 To analyze the returns and risks of different investments.
 To create awareness among the customers on different investment avenues.
 To create marketing awareness of the investment products and also identify the
potential for these products.
 To suggest the best investment opportunities for potential investors.
4
LIMITATIONS
Every study has its own limitations in terms of methodology and available resources for
its conduct. This study was not an exception and was carried out under the following
limitations:
 Financial Markets are dynamic in nature
 The research is confined to limited investment plans
 The study is limited to investments in financial markets only. Other investments

are not taken into the purview of the study
 The information related to investment in financial markets is very confidential,

so the respondents are not interested to reveal all the information
 The research is carried out based on the primary and secondary data
 The time is also one of the hindrances in the research
 Some important information may not be available due to confidentiality involved

in it.
 Secondary data may not be authentic.
5
RESEARCH METHODOLOGY
Achieving accuracy in any research requires in depth study regarding the subject.
As the prime objective of the project is compare various Investment products available
in the market with the existing players in the market and the impact of entry of private
players in the market, the research methodology adopted was basically based on primary
data via which the most recent and accurate piece of first hand information that could be
collected from all possible source. Secondary data was used to support primary data
wherever needed.
For the purpose of study, both primary and secondary data will be collected. The
observational method and survey research method is used to collect the primary data. The
main research instruments used the required data is a well-structured questionnaire.
The necessary data is also been collected from official records and other
published sources. The collected data is classified, tabulated, analyzed and interpreted.
Finally conclusion is draw based on the study and suggestions are offered to the company
for increasing its customer base.
Data Collection:
There are two types of data collection
1. Primary data
2. Secondary data
Primary Data
 Primary data is personally developed data and it gives latest information and
offers much greater accuracy and reliability.
 There are various sources for obtaining primary data i.e., Mail survey, personal
interview,
 Field survey, panel research and observation approach etc.
6
Secondary Data
Secondary data is the published data. It is already available for using and its saves
time. The mail source of secondary data are published market surveys, government
publications advertising research report and internal source such as sales, sales records
orders, customers complaints and other business record etc. the study has also depended
on secondary data to little extent, which is collected through internal source.
Sources of Secondary Data:
These source were use to obtain information on, Banks and other institutions
history, current issues, policies, procedures etc, wherever required.
 Internet
 Magazines
 Newspapers
 Journals
7
REVIEW OF LITERATURE
Investment:
The money you earn is partly spent and the rest saved for meeting future
expenses. Instead of keeping the savings idle you may like to use savings in order to get
return on it in the future which helps to your unplanned expenses.
Need of Investments:
We need to invest to generate a specified sum of money for a specific goal in life
and its make a provision for an uncertain future. One of the important reasons why we
need to invest wisely is to meet the cost of Inflation. Inflation is the rate by which the
cost of living increases. The cost of living is simply what it costs to buy the goods and
services you need to live. Inflation causes money to lose value because it will not buy the
same amount of a good or a service in the future as it does now or did in the past.
For example, if there was a 6% inflation rate for the next 20 years, a Rs. 100
purchase today would cost Rs. 321 in 20 years. This is why it is important to consider
inflation as a factor in any long-term investment strategy. Remember to look at an
investment's 'real' rate of return, which is the return after inflation. The aim of
investments should be to provide a return above the inflation rate to ensure that the
investment does not decrease in value.
When to start Investing:
The sooner one starts investing the better. By investing early you allow your
investments more time to grow, whereby the concept of compounding (as we shall see
later) increases your income, by accumulating the principal and the interest or dividend
earned on it, year after year. The three golden rules for all investors are: 1) Invest early
2) Invest regularly and 3) Invest for long term and not short term
Steps to Investing:
Before making any investment, one must ensure to:
1. Obtain written documents explaining the investment
2. Read and understand such documents
8
3. Verify the legitimacy of the investment
4. Find out the costs and benefits associated with the investment
5. Assess the risk-return profile of the investment
6. Know the liquidity and safety aspects of the investment
7. Ascertain if it is appropriate for your specific goals
8. Compare these details with other investment opportunities available
9. Examine if it fits in with other investments you are considering
10. Deal only through an authorized intermediary
11. See all clarifications about the intermediary and the investment
12. Explore the options available to you if something were to go
Interest:
When we borrow money, we are expected to pay for using it – this is known as
Interest. Interest is an amount charged to the borrower for the privilege of using the
lender’s money. Interest is usually calculated as a percentage of the principal balance (the
amount of money borrowed). The percentage rate may be fixed for the life of the loan,
or it may be variable, depending on the terms of the loan.
Factors Determining Interest Rates:
When we talk of interest rates, there are different types of interest rates - rates
that banks offer to their depositors, rates that they lend to their borrowers, the rate at
which the Government borrows in the 8 Bond/Government Securities market, rates
offered to investors in small savings schemes like NSC, PPF, rates at which companies
issue fixed deposits etc.
The factors which govern these interest rates are mostly economy related and are
commonly referred to as macroeconomic factors. Some of these factors are:
 Demand for money
 Level of Government borrowings
9
 Supply of money
 Inflation rate
The Reserve Bank of India and the Government policies which determine some of the
variables mentioned above.
Options Available for Investment:
One may invest in:
 Physical assets like real estate, gold/jewelry, commodities etc. and/or
 Financial assets such as fixed deposits with banks, small saving instruments with
post offices, insurance/provident/pension fund etc. or securities market related
instruments like shares, bonds, debentures etc.
Investment Plan in the Past Scenario:
1. Bank Fixed Deposits
2. Saving Bank Account
3. Post Office Savings
4. NSC (National Savings Certificates)
5. Kisan Vikas Patra
1. Bank Fixed Deposits:
Bank Fixed Deposits are also known as Term Deposits. In a Fixed Deposit
Account, a certain sum of money is deposited in the bank for a specified time period with
a fixed rate of interest.
The rate of interest for Bank Fixed Deposits depends on the maturity period. It is
higher in case of longer maturity period. There is great flexibility in maturity period and
it ranges from 7days to 10 years. The interest is compounded annually and is added to
the principal amount.
10
2. Savings Bank Account:
Savings Bank Account is often the first banking product people use, which offers
low interest (4%-5% p.a.), making them only marginally better than fixed deposits.
3. Post Office Savings:
Post Office Monthly Income Scheme is a low risk saving instrument, which can
be availed through any post office. It provides an interest rate of 8% per annum, which
is paid monthly. Minimum amount, which can be invested, is Rs. 1,000/- and additional
investment in multiples of 1,000/-. Maximum amount is Rs. 3,00,000/- (if Single) or Rs.
6,00,000/- (if held Jointly) during a year. It has a maturity period of 6 years. A bonus of
10% is paid at the time of maturity. Premature withdrawal is permitted if deposit is more
than one year old. A deduction of 5% is levied from the principal amount if withdrawn
prematurely; the 10% bonus is also denied.
4. National Savings Certificates:
National Savings Certificates (NSC) are certificates issued by Department of

post, Government of India and are available at all post office counters in the country. It
is a long term safe savings option for the investor. The scheme combines growth in
money with reductions in tax liability as per the provisions of the Income Tax Act, 1961.
The duration of a NSC scheme is 6 years.
5. Kisan Vikas Patra:
Kisan Vikas Patra (KVP) is a saving instrument that provides interest income similar
to bonds. Amount invested in Kisan Vikas Patra doubles on maturity after 8 years & 7
months. Kisan Vikas Patra can be purchased by the following:
 An adult in his own name, or on behalf of a minor,
 A minor,
 A Trust,
 Two adults jointly
11
Kisan Vikas Patra are available in the denominations of Rs100, Rs500, Rs1,000, Rs5,000,
Rs10,000 & Rs50,000. There is no maximum limit on purchase of KVPs. Premature
encashment of the certificate is not permissible except at a discount in the case of death
of the holder(s), forfeiture by a pledgee and when ordered by a court of law.
Investment Plan in the Present Scenario:
1. Shares
2. Mutual Fund
3. ULIP
4. Provident Funds
5. Bonds
6. Commodities
7. Currencies
8. Real Estate
1. Shares:
A share is a unit of account for various financial instruments including stocks, mutual
funds, limited partnerships, and REIT's. Share or stock is a document issued by a
company, which entitles its holder to be one of the owners of the company. A share is
issued by a company or can be purchased from the stock market. By owning a share you
can earn a portion and selling shares you get capital gain. So, your return is the dividend
plus the capital gain. However, you also run a risk of making a capital loss if you have
sold the share at a price below your buying price.
A company's stock price reflects what investors think about the stock, not necessarily
what the company is "worth." For example, companies that are growing quickly often
trade at a higher price than the company might currently be "worth." Stock prices are also
affected by all forms of company and market news. Publicly traded companies are
required to report quarterly on their financial status and earnings. Market forces and
general investor opinions can also affect share price.
12
2. Mutual Fund:
Mutual Fund is an instrument of investing money. Nowadays, bank rates have fallen
down and are generally below the inflation rate. Therefore, keeping large amounts of
money in bank is not a wise option, as in real terms the value of money decreases over a
period of time. One of the options is to invest the money in stock market. But a common
investor is not informed and competent enough to understand the intricacies of stock
market. This is where mutual funds come to the rescue.
A mutual fund is a group of investors operating through a fund manager to purchase

a diverse portfolio of stocks or bonds. Mutual funds are highly cost efficient and very
easy to invest in. By pooling money together in a mutual fund, investors can purchase
stocks or bonds with much lower trading costs than if they tried to do it on their own.
Also, one doesn't have to figure out which stocks or bonds to buy. But the biggest
advantage of mutual funds is diversification.
3. ULIP:
Unit linked insurance plan (ULIP) is life insurance solution that provides for the
benefits of protection and flexibility in investment. The investment is denoted as units
and is represented by the value that it has attained called as Net Asset Value (NAV). The
policy value at any time varies according to the value of the underlying assets at the time.
ULIP provides multiple benefits to the consumer. The benefits include:
 Life protection
 Investment and Savings
 Flexibility
 Adjustable Life Cover
 Investment Options
 Transparency
 Options to take additional cover against
 Death due to accident
13
 Disability
 Critical Illness
 Surgeries
 Liquidity
 Tax Planning
4.Provident Fund
Employee Provident Fund [also know as EPF] is one of the main platforms of savings
in India for nearly all people working in Government & Public sector Organizations. It
is important for every working individual to understand the importance of EPF and how
it can benefit him or her. The Employees' Provident Fund Organisation, is a statutory
body of the Government of India under the Ministry of Labour and Employment. It
administers a compulsory contributory Provident Fund Scheme, Pension Scheme and an
Insurance Scheme. It is one of the largest social security organisations in the world in
terms of the number of covered beneficiaries and the volume of financial transactions
undertaken. It is mandatory for every organization who have more than 20 employees on
the payroll. If you are working in an organization who have more than 20 employees,
and the employer is not giving you EPF benefit, you can official complaint to EPF
organization.
Employee Provident Fund Benefits
EPF scheme benefits employees in following essential needs:
 Retirement
 Medical Care
 Housing
 Family obligation
 Education of Children
 Financing of Insurance Polices
14
How EPF works?
Under the EPF Scheme both the employees and employer contribute equally to the
Employee Provident fund at the rate of 12% of the basic wages, dearness allowance and
retaining allowance, if any, payable to employees per month.
The rate of is fixed at 10% in the case of following establishments:
 Any establishment with less then 20 employees.
 Any sick industrial company and which has been declared as such by the Board
for Industrial and Financial Reconstruction
 Any establishment which has at the end of any financial year accumulated losses
equal to or exceeding its entire net worth and
 Any establishment engaged in manufacturing of (a) jute (b) Breed (d) coir and (e)
Guar gum Industries/ Factories.
5. Corporate & Government Bonds
The Bond Market in India with the liberalization has been transformed completely. The
opening up of the financial market at present has influenced several foreign investors
holding upto 30% of the financial in form of fixed income to invest in the bond market
in India. The bond market in India has diversified to a large extent and that is a huge
contributor to the stable growth of the economy. The bond market has immense potential
in raising funds to support the infrastructural development undertaken by the government
and expansion plans of the companies.
Sometimes the unavailability of funds become one of the major problems for the large
organization. The bond market in India plays an important role in fund raising for
developmental ventures. Bonds are issued and sold to the public for funds.
Bonds are interest bearing debt certificates. Bonds under the bond market in India may
be issued by the large private organizations and government company.
15
The bond market in India has huge opportunities for the market is still quite shallow. The
equity market is more popular than the bond market in India. At present the bond market
has emerged into an important financial sector.
The different types of bond market in India
 Corporate Bond Market
 Municipal Bond Market
 Government and Agency Bond Market
 Funding Bond Market
 Mortgage Backed and Collateral Debt Obligation Bond Market
You can lend money to the government or a corporation and receive some interest. When
the stock market goes south, investors turn to bonds as a good diversification from the
stock market.
6. Commodities
A commodity-linked security refers to a security whose return is dependent to a certain

extent on the price level of a commodity, such as crude oil, gold, or silver, at maturity.
For example, the principal of a commodity-linked bond is indexed to movements of a
commodity index such as precious metal or oil. Commodity derivatives include both
exchange-traded and over-the-counter commodity derivatives such as swaps, futures and
forwards. They are used to hedge risk and to take advantage of arbitrage opportunities.
Commodities offer investors a number of benefits:
 Hedge Against Inflation: Commodity cash prices may benefit from periods of
unexpected inflation, whereas stocks and bonds may suffer. Commodities are
"real assets", unlike stocks and bonds, which are "financial assets". Commodities,
therefore, tend to react to changing economic fundamentals in ways that are
different from traditional financial assets, particularly with respect to inflation.
16
Commodity prices usually rise when inflation is accelerating, so investing in
commodities can give portfolios a hedge against inflation. Conversely, stocks and
bonds tend to perform better when the rate of inflation is stable or slowing. Faster
inflation lowers the value of future cash flows paid by stocks and bonds because those
future dollars will be able to buy fewer goods and services than they would today.
However, this inflation advantage is captured more efficiently by direct investment

in commodities than, for example, investment in commodity-related equities whose
prices also reflect the financial prospects of the issuer or actively managed
commodity futures accounts, which tend to reflect the manager's skills at selecting
the right commodities.
 Performance/Return: Investor interest in commodities has soared in recent years

as the asset class has outperformed traditional assets such as stocks and bonds.
 Enhanced Diversification: Portfolio diversification is the primary benefit of

holding commodities. The reason for that is the commodity investor is exposed
to commodity futures prices. Changes in those prices reflect changing
expectations about future supply and demand for commodities.
7. Currencies
Investing in foreign currency sounds like an exotic and risky venture. In fact, the foreign
exchange (or "forex") market used to be largely dominated by banks and institutional
investors. But now, online brokerages have changed all of that by enabling investors to
make trades with the click of a mouse.
Benefits and Risks of Investing in Foreign Currency
There are many benefits and risks to consider before deciding to invest in foreign
currency. While it's the largest and most liquid market in the world, investors should be
cognizant of the many risks that set it apart from traditional equity markets. Notably, the
high leverage used when investing in foreign currency can result in high volatility greater
risk of loss.
17
The key benefits of investing in foreign currency include:
 Large & Liquid Market. The foreign exchange market is the largest and most liquid
market in the world with average daily volume in excess of US$4 trillion.
 Diversification. The foreign exchange market offers investors a way to diversify away
from potential risks associated with the U.S. dollar as an asset class.
The key risks of investing in foreign currency include:
 High Leverage. The foreign exchange market moves in very small increments, which
makes high leverage (via margin) a necessity and risk for those directly investing.
 High Volatility. The foreign exchange market is known for high levels of volatility
due to economic reports, central bank interventions and other factors.
Investors should carefully consider risk management techniques to help mitigate these
risks and improve their long-term returns.
Easily Invest in Foreign Currency with ETFs
Exchange-traded funds (ETFs) represent one of the easiest ways to invest in foreign
currency. These funds purchase and manage a portfolio of currencies on behalf of
investors. The benefits are that investors do not have as much leverage-related risk and
the purchase itself can usually be done through a traditional stock broker rather than a
foreign exchange broker.
Investors should carefully read the ETFs' prospectus before investing in order to quantify
any fees charged and learn about other important information.
How to Invest in Foreign Currency Directly
Investors can also directly buy and sell individual currencies on margin through a foreign
exchange brokerage. With an initial deposit as low as $300 to $500, investors can
18
purchase currency with margin levels that range from 50:1 to more than 10,000:1. Of
course, greater leverage obtained through margin also translates to increased volatility
and risk of loss.
Investors looking for an easy way to invest in foreign currency should consider ETFs.
These funds are easier to trade with traditional stock brokers and have fewer leverage-
related risks. However, those seeking more direct exposure to foreign currency can also
open a foreign exchange brokerage account and purchase the currencies directly using
margin.
8. Real Estate
Historically, real estate has been a very popular alternative investment. Of course, the
2008 crash in the U.S. real estate market made many nervous about investing in real
estate. But with prices still extremely low, real estate can be a good investment
opportunity. The three most accessible ways to invest in real estate are to buy rental
property as an individual, to join a real estate investment group or to buy shares in a real
estate investment trust (REIT). Buying rental property can usually provide steady,
reliable income if you find the right tenants. However, there are also expenses like
property taxes and general upkeep that can limit profits, as well as huge investments of
time and effort.
Real estate investment groups offer a more hands-off, low-risk method of investing in
real estate. A group of individual investors contributes money to a company that
purchases a property. The company manages the property in exchange for a portion of
the monthly rent. Another option is the real estate investment trust (REIT). They
provide extremely accessible ways for individuals to invest in real estate. An REIT is a
group that invests in various real estate properties, and receives preferential tax treatment
from the IRS in exchange for paying most of its income to shareholders [source: U.S.
Securities and Exchange Commission]. Investors can purchase shares of REITs on public
exchanges, making them one of the more liquid alternative investments. Another upside
is that, like stocks, shares in REITs pay out regular dividends
19
PROFILE OF THE COMPANY
Angel Booking’s tryst with excellence in customer relations began more than 20
years ago. Angel Group has emerged as one of the top 10 retail broking houses in India
and incorporated in 1987. Today, Angel has emerged as a premium Indian stock-broking
and wealth management house, with an absolute focus on retail business and a
commitment to provide "Real Value for Money" to all its clients.
It has memberships on BSE, NSE and the leading commodity exchanges in India
NCDEX & MCX. Angel is also registered as a depository participant with CDSL.
Angel Group Companies
Member on the BSE and Depository Participant

Angel Broking Ltd.
with CDSL
Angel Capital & Debt Market Membership on the NSE Cash and Futures &
Ltd. Options Segment
Angel Commodities Broking

Member on the NCDEX & MCX
Ltd.
Angel Securities Ltd. Member on the BSE
 Incorporated :1987
 BSE Membership :1997
 NSE membership :1998
 Member of NCDEX and MCX
 Depository Participants with CDSL
20
Angel’s Presence:
 Nation- wide network of 21 regional hubs
 Presence 124 cities
 6800 + sub brokers & business associates
 5.9 lakh +clients
Management:
S.No Name Designation & Department

1. Mr. Dinesh Thakkar Founder Chairman & Managing Director
2. Mr. Lalit Thakkar Director – Research
3. Mr. Amit Majumdar Executive Director – Strategy and Finance
4. Mr. Rajiv Phadke Executive Director – HR & Corp
5. Mr. Vinay Agrawal Executive Director – Equity Broking
6. Mr. Nikhil Daxini Executive Director - Sales and Marketing

Executive Director - Distribution & Wealth
7 Mr. Hitungshu Debnath
Management
8. Mr. Mudit Kulshreshtha Executive Director – Operations
Milestones:
 Awarded with 'Broking House with Largest Distribution Network' and 'Best
Retail Broking House' at Dun & Bred street Equity Broking Awards 2009
 August, 2008 Crossed 500000 trading accounts
● November, 2007 ‘Major Volume Driver’ for 2007
● December, 2006 Created 2500 business associates
● October, 2006 ‘Major Volume Driver’ award for 2006
● September, 2006 Launched Mutual Fund and IPO business
● July, 2006 Launched the PMS function
21
● October, 2005 ‘Major Volume Driver’ award for 2005
● September, 2004 Launched Online Trading Platform
● April, 2004 Initiated Commodities Broking division
● April, 2003 First published research report
● November, 2002 Angel’s first investor seminar
● March, 2002 Developed web-enabled back office software
● November, 1998 Angel Capital and Debt Market Ltd. Incorporated
● December, 1997 Angel Broking Ltd. Incorporated
Vision of the Company:
To provide best value for money to investors through innovative products, trading /
investment strategies, state-of-the-art technology and personalized service
Philosophy of the Company:
Ethical practices & transparency in all our dealings customer interest above our own
always deliver what we promise effective cost management.
Quality Assurance Policy:
We are committed to being the leader in providing World Class Product & Services
which exceed the expectations of our customers Achieved by teamwork and a process of
continuous improvement
CRM Policy:
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 interruption in our work, but is the Purpose of it. We
are not doing him a favour by serving. He is doing us a favour by giving us an opportunity
to do so
22
Logo of the Company:
23
Organizational Structure:
CSO (Central
Support
Office)
Regional Office Regional Office Regional Office
Branches & Branches & Branches &

Franchise Franchise Franchise
Branches Branches Branches
Business
Angel Clients
Associates
Angel Clients
Products of Angel Broking:
1. Online Trading
2. Commodities
3. DP Services
4. PMS (Portfolio Management Services)
5. Insurance
6. IPO Advisory
7. Mutual Fund
8. Personal loans
9. Quality Assurance
24
E-Broking
Angle has different products and voila trading on BSC, NSC, F&O, MCX & NCDEX. It
provides four softwares to customers for online trading.
Angel Investor
 User-friendly browser for investors
 Easy online trading platform
 Works in proxy and firewall system set up
 Integrated Back office: Access account information – anytime, anywhere
 Streaming quotes
 Refresh static rates when required
 Multiple exchanges on single screen
 Online fund transfer facility
Angel Trade
 Browser based for investor
 No installation required
 Advantage of mobility
 Trading as simple as internet surfing
 BSC, NSC, F&O, MCX & NCDEX
Angel Diet
 Application based ideal for traders.
 Multiple exchanges on single screen
 User friendly & simple navigation
 BSC, NSC, F&O, MCX & NCDEX
25
Angel Anywhere
 Application-based platform for day traders
 Intra-day/historical charts with various indicators
 BSC, NSC, Cash & Derivatives
Investment Advisory Services
To derive optimum returns from equity as an asset class requires professional

guidance and advice. Professional assistance will always be beneficial in wealth creation.
Investment decisions without expert advice would be like treating ailment without the
help of a doctor.
● Expert Advice: Their expert investment advisors are based at various branches
across India to provide assistance in designing and monitoring portfolios.
● Timely Entry & Exit: Their advisors will regularly monitor customers’ investments
and guide customers to book timely profits. They will also guide them in adopting
switching techniques from one stock to another during various market conditions.
● De-Risking Portfolio: A diversified portfolio of stocks is always better than

concentration in a single stock. Based on their research, They diversify the portfolio
in growth oriented sectors and stocks to minimize the risk and optimize the returns.
Commodities
A commodity is a basic good representing a monetary value. Commodities are

most often used as inputs in the production of other goods or services. With the advent
of new online exchange, commodities can now be traded in futures markets. When they
are traded on an exchange, Commodities must also meet specified minimum standards
known as basic grade.
Types of Commodities:
● Precious Metals : Gold and Silver
26
● Base Metals : Copper, Zinc , Steel and Aluminum
● Energy : Crude Oil, Brent Crude and Natural Gas
● Pulses : Chana , Urad and Tur
● Spices : Black Pepper, Jeera, Turmeric , Red Chili
● Others : Guar Complex, Soy Complex, Wheat and Sugar
Benefits at Angel:
 Three different online products tailored for traders & investors.
 Single Screen customized market-watch for MCX / NCDEX with BSE / NSE.
 Streaming Quotes and real time Rates. Intra-day trading calls.
 Research on 25 Agro Commodities, Precious and Base Metals, Energy products

and Polymers.
 An array of daily, weekly and special research reports.
 Highly skilled analysts with professional industry experience.
 Active relationship management desk.
 Seminars, workshops and investment camps for investors
Depositary Participant Services
Angel Broking Ltd. is a DP services provider though CDSL. We offer depository

services to create a seamless transaction platform to execute trades through Angel group
of companies and settle these transactions through Angel Depository services.
● Wide branch coverage
● Personalized/attentive services of trained a dedicated staff
● Centralized billing & accounting
● Acceptance & execution of instruction on fax
● Daily statement of transaction & holdings statement on e-mail
● No charges for extra transaction statement & holdings statement.
27
Portfolio Management Services
Successful investing in Capital Markets demands ever more time and expertise.
Investment Management is an art and a science in itself. Portfolio Management Services
(PMS) is one such service that is fast gaining eminence as an investment avenue of choice
for High Net worth Investors (HNI). PMS is a sophisticated investment vehicle that offers
a range of specialized investment strategies to capitalize on opportunities in the market.
The Portfolio Management Service combined with competent fund management,
dedicated research and technology, ensures a rewarding experience for its clients.
Mutual Fund
To enable clients to diversify their investment in the right direction. Angel

Broking has added another product in its range with mutual funds.
● Access to in-depth research & proper selection from diversified funds based on
your preferred criteria
● Rating and rankings of all mutual funds from our in house expert analysts
● News and alert for your Mutual fund Portfolio and performance tracking with
watch lists
● Current and historical performance of different funds enabling comparisons
Benefits
● No risk of loss, wrong transfer, mutilation or theft of share certificates.
● Hassle free automated pay-in of your sell obligations by your clearing members
● Reduced paper work.
● Speedier settlement process. Because of faster transfer and registration of

securities in your account, increased liquidity of your securities.
● Instant disbursement of non-cash benefits like bonus and rights into your account.
● Efficient pledge mechanism.
28
Fundamental Services:
The Sunday Weekly Report
This weekly report is ace of all the reports. It offers a comprehensive market
overview and likely trends in the week ahead. It also presents 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 advice trading strategies. Another unique
feature of this report is that it provides an updated view of about 70 prominent stocks on
an ongoing basis.
Stock Analysis
Angel’s stock research has performed very well over the past few years and angel
model portfolio has consistently outperformed the benchmark indices. The fundamentals
of select scripts are thoroughly analyzed and actionable advice is provided along with
investment rationale for each scrip.
Flash News
Key developments and significant news announcement that are likely to have an
impact on market / scripts are flashed live on trading terminals. Flash news keeps the
market men updated on an online basis and helps them to reshuffle their holdings.
Technical Services
Intra-Day Calls
For day trader’s angel provides intraday calls with entry, exit and stop loss levels
during the market hours and our calls are flashed on our terminals. Our analysts
continuously track the calls and provide the recommendations according to the market
movements. Past performance of these calls in terms of profit/loss is also available to our
associates to enable them to judge the success rate.
Posting Trading Calls
Angels “Position Trading Calls” are based on a through analysis of the price
movements in selected scripts and provides calls for taking positions with a 10 - 15 days
29
time span with stop losses and targets. These calls are also flashed on our terminals during
market hours.
Derivative Strategies
Our analyst take a view on the NIFTY and selected scripts based on derivatives
and technical tools and devise suitable “Derivative Strategies” , which are flashed on our
terminals and published in our derivative reports.
30
PROFILE OF INDUSTRY
Financial Markets:
Finance is the pre-requisite for modern business and financial institutions play a
vital role in the economic system. It is through financial markets and institutions that the
financial system of an economy works. Financial markets refer to the institutional
arrangements for dealing in financial assets and credit instruments of different types such
as currency, cheques, bank deposits, bills, bonds, equities, etc.
Financial market is a broad term describing any marketplace where buyers and
sellers participate in the trade of assets such as equities, bonds, currencies and derivatives.
They are typically defined by having transparent pricing, basic regulations on trading,
costs and fees and market forces determining the prices of securities that trade.
Generally, there is no specific place or location to indicate a financial market.

Wherever a financial transaction takes place, it is deemed to have taken place in the
financial market. Hence financial markets are pervasive in nature since financial
transactions are themselves very pervasive throughout the economic system. For
instance, issue of equity shares, granting of loan by term lending institutions, deposit of
money into a bank, purchase of debentures, sale of shares and so on.
In a nutshell, financial markets are the credit markets catering to the various needs
of the individuals, firms and institutions by facilitating buying and selling of financial
assets, claims and services.
31
Classification of Financial Markets:
Financial
markets
Organized Unorganized
markets markets
Money Lenders,
Capital Markets Money Markets Indigenuos
Bankers
Industrial
Call Money
Securities
Market
Market
Commercial Bill
Primary Market
Market
Secondary Treasury Bill

market Market
Government
Securities
Market
Long-term loan
market
32
Capital Market:
The capital market is a market for financial assets which have a long or indefinite
maturity. Generally, it deals with long term securities which have a period of above one
year. In the widest sense, it consists of a series of channels through which the savings of
the community are made available for industrial and commercial enterprises and public
authorities. As a whole, capital market facilitates raising of capital.
The major functions performed by a capital market are:
1. Mobilization of financial resources on a nation-wide scale.
2. Securing the foreign capital and know-how to fill up deficit in the required
resources for economic growth at a faster rate.
3. Effective allocation of the mobilized financial resources, by directing the same to

projects yielding highest yield or to the projects needed to promote balanced
economic development.
Capital market consists of primary market and secondary market.
Primary market:
Primary market is a market for new issues or new financial claims. Hence it is
also called as New Issue Market. It basically deals with those securities which are issued
to the public for the first time. The market, therefore, makes available a new block of
securities for public subscription. In other words, it deals with raising of fresh capital by
companies either for cash or for consideration other than cash. The best example could
be Initial Public Offering (IPO) where a firm offers shares to the public for the first time.
Secondary market:
Secondary market is a market where existing securities are traded. In other words,
securities which have already passed through new issue market are traded in this market.
Generally, such securities are quoted in the stock exchange and it provides a continuous
and regular market for buying and selling of securities. This market consists of all stock
exchanges recognized by the government of India.
Money Market:
33
Money markets are the markets for short-term, highly liquid debt securities.
Money market securities are generally very safe investments which return relatively low
interest rate that is most appropriate for temporary cash storage or short term time needs.
It consists of a number of sub-markets which collectively constitute the money market
namely call money market, commercial bills market, acceptance market, and Treasury
bill market.
Derivatives Market:
The derivatives market is the financial market for derivatives, financial

instruments like futures contracts or options, which are derived from other forms of
assets. A derivative is a security whose price is dependent upon or derived from one or
more underlying assets. The derivative itself is merely a contract between two or more
parties. Its value is determined by fluctuations in the underlying asset. The most common
underlying assets include stocks, bonds, commodities, currencies, interest rates and
market indexes. The important financial derivatives are the following:
 Forwards: Forwards are the oldest of all the derivatives. A forward contract
refers to an agreement between two parties to exchange an agreed quantity of an
asset for cash at a certain date in future at a predetermined price specified in that
agreement. The promised asset may be currency, commodity, instrument etc.
 Futures: Future contract is very similar to a forward contract in all respects

excepting the fact that it is completely a standardized one. It is nothing but a
standardized forward contract which is legally enforceable and always traded on
an organized exchange.
 Options: A financial derivative that represents a contract sold by one party

(option writer) to another party (option holder). The contract offers the buyer the
right, but not the obligation, to buy (call) or sell (put) a security or other financial
asset at an agreed-upon price (the strike price) during a certain period of time or
on a specific date (exercise date). Call options give the option to buy at certain
price, so the buyer would want the stock to go up. Put options give the option to
sell at a certain price, so the buyer would want the stock to go down.
34
 Swaps: It is yet another exciting trading instrument. Infact, it is the combination
of forwards by two counterparties. It is arranged to reap the benefits arising from
the fluctuations in the market – either currency market or interest rate market or
any other market for that matter.
Foreign Exchange Market:
It is a market in which participants are able to buy, sell, exchange and speculate
on currencies. Foreign exchange markets are made up of banks, commercial companies,
central banks, investment management firms, hedge funds, and retail forex brokers and
investors. The Forex market is considered to be the largest financial market in the world.
It is a worldwide decentralized over-the-counter financial market for the trading of
currencies. Because the currency markets are large and liquid, they are believed to be the
most efficient financial markets. It is important to realize that the foreign exchange
market is not a single exchange, but is constructed of a global network of computers that
connects participants from all parts of the world.
Commodities Market:
It is a physical or virtual marketplace for buying, selling and trading raw or

primary products. For investors' purposes there are currently about 50 major commodity
markets worldwide that facilitate investment trade in nearly 100 primary
commodities. Commodities are split into two types: hard and soft commodities. Hard
commodities are typically natural resources that must be mined or extracted (gold,
rubber, oil, etc.), whereas soft commodities are agricultural products or livestock (corn,
wheat, coffee, sugar, soybeans, pork, etc.)
35
Indian Financial Markets:
India Financial market is one of the oldest in the world and is considered to be
the fastest growing and best among all the markets of the emerging economies.
The history of Indian capital markets dates back 200 years toward the end of the
18th century when India was under the rule of the East India Company. The development
of the capital market in India concentrated around Mumbai where no less than 200 to 250
securities brokers were active during the second half of the 19th century.
The financial market in India today is more developed than many other sectors
because it was organized long before with the securities exchanges of Mumbai,
Ahmadabad and Kolkata were established as early as the 19th century.
By the early 1960s the total number of securities exchanges in India rose to eight,
including Mumbai, Ahmadabad and Kolkata apart from Madras, Kanpur, Delhi,
Bangalore and Pune. Today there are 21 regional securities exchanges in India in addition
to the centralized NSE (National Stock Exchange) and OTCEI (Over the Counter
Exchange of India).
However the stock markets in India remained stagnant due to stringent controls
on the market economy that allowed only a handful of monopolies to dominate their
respective sectors. The corporate sector wasn't allowed into many industry segments,
which were dominated by the state controlled public sector resulting in stagnation of the
economy right up to the early 1990s. Thereafter when the Indian economy began
liberalizing and the controls began to be dismantled or eased out; the securities markets
witnessed a flurry of IPO’s that were launched. This resulted in many new companies
across different industry segments to come up with newer products and services.
A remarkable feature of the growth of the Indian economy in recent years has
been the role played by its securities markets in assisting and fuelling that growth with
money rose within the economy. This was in marked contrast to the initial phase of
growth in many of the fast growing economies of East Asia that witnessed huge doses of
FDI (Foreign Direct Investment) spurring growth in their initial days of market decontrol.
During this phase in India much of the organized sector has been affected by high growth
36
as the financial markets played an all-inclusive role in sustaining financial resource
mobilization. Many PSUs (Public Sector Undertakings) that decided to offload part of
their equity were also helped by the well-organized securities market in India.
The launch of the NSE (National Stock Exchange) and the OTCEI (Over the
Counter Exchange of India) during the mid 1990s by the government of India was meant
to usher in an easier and more transparent form of trading in securities. The NSE was
conceived as the market for trading in the securities of companies from the large-scale
sector and the OTCEI for those from the small-scale sector. While the NSE has not just
done well to grow and evolve into the virtual backbone of capital markets in India the
OTCEI struggled and is yet to show any sign of growth and development. The integration
of IT into the capital market infrastructure has been particularly smooth in India due to
the country’s world class IT industry. This has pushed up the operational efficiency of
the Indian stock market to global standards and as a result the country has been able to
capitalize on its high growth and attract foreign capital like never before.
The regulating authority for capital markets in India is the SEBI (Securities and
Exchange Board of India). SEBI came into prominence in the 1990s after the capital
markets experienced some turbulence. It had to take drastic measures to plug many
loopholes that were exploited by certain market forces to advance their vested interests.
After this initial phase of struggle SEBI has grown in strength as the regulator of India’s
capital markets and as one of the country’s most important institutions.
Stock Exchanges in India:
Stock Exchanges are an organized marketplace, either corporation or mutual

organization, where members of the organization gather to trade company stocks or other
securities. The members may act either as agents for their customers, or as principals for
their own accounts.
As per the Securities Contracts Regulation Act, 1956 a stock exchange is an association,
organization or body of individuals whether incorporated or not, established for the
purpose of assisting, regulating and controlling business in buying, selling and dealing in
securities.
37
Stock exchanges facilitate for the issue and redemption of securities and other financial
instruments including the payment of income and dividends. The record keeping is
central but trade is linked to such physical place because modern markets are
computerized. The trade on an exchange is only by members and stock broker do have a
seat on the exchange.
List of Stock Exchanges in India
Bombay Stock Exchange
National Stock Exchange 19. Uttar Pradesh

20. Vadodara
OTC Exchange of India
Regional Stock Exchanges
1. Ahmedabad
2. Bangalore
3. Bhubaneswar
4. Calcutta
5. Cochin
6. Coimbatore
7. Delhi
8. Guwahati
9. Hyderabad
10. Jaipur
11. Ludhiana
12. Madhya Pradesh
13. Madras
14. Magadh
15. Mangalore
16. Meerut
17. Pune
18. Saurashtra Kutch
38
RESULTS AND DISCUSSIONS
Interest Rate for FD of Less than 1 Year:

The highest interest rate is offered by Bandhan Bank (181 days to 364 days) and The Ratnakar Bank (241 days
to 364 days) at 8.25%.
Bank Description Interest Rate
The Ratnakar Bank 241 days to 364 days 8.25%
Bandhan Bank 181 days to 364 days 8.25%
Bandhan Bank 91 days to 180 days 8.00%
IDFC Bank 271 – 365 days 8.00%
Lakshmi Vilas Bank 200 Days 8.00%
Karur Vysya Bank 91 Days to 180 Days 7.90%
DCB Bank 6 months to less than 12 7.75%

months
J&K Bank 271 days to less than 1 7.75%

year
Indus Ind Bank 181 days to below 1 7.75%

year
Canara Bank 270 days to less than 1 7.75%

year
State Bank of India Government Bank 5.25% – 7.00%

Benchmark
ICICI Bank Private Bank 4.00% – 7.50%

Benchmark
39
Interest Rate for Fixed Deposit of 1 – 2 Years:
The highest interest rate is offered by The Ratnakar Bank (12 months to less than 24 months) and Bandhan Bank
at 8.50%.
The Ratnakar Bank 12 months to less than 24 months 8.50%
Bandhan Bank 1 year to less than 2 years 8.50%
Lakshmi Vilas Bank 500 days 8.25%
DCB Bank 18 months to less than 24 months 8.15%
Indus Ind Bank 1 year to below 1 years 2 months 8.00%
J&K Bank 1 year to less than 5 years 8.00%
Andhra Bank 400 Days 7.90%
Lakshmi Vilas Bank 18 Months to less than 5 years 7.90%
Axis Bank 1 year to below 2 years 7.90%
HDFC Bank 1 Year 7.90%
ICICI Bank 390 days up to 2 years 7.90%
Kotak Mahindra Bank 365 Days to 389 Days 7.90%
Yes Bank 12 Months 10 Days to 12 Months 20 Days 7.90%
40
State Bank of Hyderabad SBH Kuber-400 days 7.85%
Tamilnad Mercantile Bank Ltd 555 days 7.85%
Lakshmi Vilas Bank 1 year to less than 18 months 7.80%
Punjab and Sind Bank 1 year to below 2 years 7.80%
Tamilnad Mercantile Bank Ltd 20 Months 20 Days 7.80%
State Bank of Patiala 1 year to 555 days 7.77%
State Bank of India Government Bank Benchmark 7.25% – 7.50%
ICICI Bank Private Bank Benchmark 7.75% – 7.90%
Post Office FD (1 Year) Post Office 8.40%
Interest Rate for Fixed Deposit of 2 – 5 Years

The highest interest rate is offered by The Ratnakar Bank (24 months to less than 36 months) at
9.0%.
Bandhan Bank 2 years to less than 3 years 8.50%
Bandhan Bank 3 years to less than 5 years 8.25%
DCB Bank 24 months to 60 months 8.20%
41
J&K Bank 1 year to less than 5 years 8.00%
Tamilnad Mercantile Bank 777 Days 7.90%

Ltd
Lakshmi Vilas Bank 18 Months to less than 5 years 7.90%
Indus Ind Bank 2 years 6 months to below 2 years 9 7.90%

months
Central Bank of India 777 Days 7.80%
State Bank of India Government Bank Benchmark 7.00% –

7.50%
ICICI Bank Private Bank Benchmark 7.75%
Post Office FD (2/3 years) Post Office 8.40%
Post Office FD (5 years) Post Office 8.50%
Interest Rate for FD of More than 5 Years

The highest interest rate is offered by The Ratnakar Bank (36 months to less than 120 months) at 8.75%.
The Ratnakar Bank 120 months to 240 months 8.50%
Bandhan Bank 5 Years to 10 years 8.00%
DCB Bank More than 60 months to 120 months 8.00%
Lakshmi Vilas Bank 5 years and above 7.80%
Tamilnad Mercantile Bank Ltd 5 Years to 10 Years 7.80%
State Bank of India Government Bank Benchmark 7.00%
42
ICICI Bank Private Bank Benchmark 7.50%
Public Provident Fund

Retirement fund body EPFO increased the rate of interest on Provident Fund deposits to 8.75%,
a move that will benefit about 5 crore subscribers. According to sources, the body had surplus
funds, which enabled the interest rate to be increased from 8.5% in the previous financial year.
The EPFO's recommendation will be vetted by the finance ministry. Once the ministry approves
the decision, the interest would be credited to the accounts of subscribers.
RETURNS FROM THE STOCK MARKET
BSE –Sensex
YEAR CLOSE YoY %

2013 15,454.92 -24.64%
2014 17,636.99 14.11%
2015 19458.15 10.32%
2016 21,170.12 8.29%
43
2017 27520.00 30.00%
2018 26626.46 -3%
BSE IPO Index
BSE introduced the new index series - BSE IPO index to track the current primary market
conditions in the Indian capital market. BSE on August 24, 2009 announced the launch of BSE
IPO index to track the value of companies for two years after listing subsequent to successful
completion of their initial public offering (IPO). BSE continued to introduce index innovations
with the launch of the IPO index, by introducing ceiling (capping) on weightings of index
constituents. Market capitalisation weightings of index constituents is limited to 20%. If a
constituent’s market capitalization results in a higher weighting, the company’s weight is suitably
adjusted to ensure that all constituents are restricted to 20% in the index. However, between any
rebalancing, weightage of any index constituent can exceed 20%.
Source: http://www.moneycontrol.com/indian-indices/bse-ipo-33.html
The BSE IPO index has performed poorly since its launch on 24 August 2009. The index closed
at 1947.54 on the day of its launch. By the end of December 2016, the BSE IPO index has almost
44
reached 3371 points. In the same period, the Sensex is up by 250% increasing from 10,335 points
on 2nd Jan 2009 to 26,620 points on 30th Dec 2016.
RETURNS FROM COMMODITY TRADING
Analysis of Gold & Silver Prices
Gold had a negative return in the last three years. Gold Prices have decreased from Rs.3050 per
gram in 2013 to nearly Rs.2750 in 2016 which is a good 10% decrease.
Chart: 1
Gold Price (in Rs. Per Gram)
3500
3050 2,950.00
3000 2750 2750
2600
2500
2,044.17
2000 1,641.91
1500
1000
500
0
2016 2015 2014 2013 2012 2011 2010
Table: 1
Year Gold Price (in Rs. Per Gram)

2018 2750.00
2017 2600.00
2016 2750.00
2015 3050.00
2014 2,950.00
2013 2,044.17
2012 1,641.91
45
Silver Price Trends
The price of Silver has decreased drastically in the recent years. The silver price fell from
Rs.59,200 per Kg in 2012 to Rs.39000 in 2016 which is a decrease of 33%
Chart: 3
Silver (Price in Rs Per KG)
70000
59200
60000
49465
50000 44290 46500
39000
40000 33750
30000
20000
10000
0
2016 2015 2014 2013 2012 2011
Table: 3
Year Silver (Price in Rs Per KG)

2018 39000
2017 33750
2016 44290
2015 46500
2014 59200
2013 49465
Since the past few years, silver has followed the trend of gold prices, rising and falling at a faster
pace than gold. The trend indicates that the monetary influences on the precious metal are more
than the fundamental demand and supply factors. Over the years, silver has shown a rising trend,
led by weaker US dollar, global economic turmoil and liquidity infusions.
46
Returns on Mutual Funds
Large Cap NAV 1 yr Return AUM (Rs. cr.)

(Rs./Unit) (%) Sep 15
Franklin India Oppor. (G) 50.13 -10.1 414.72
IDBI India Top 100 Equity Fund (G) 17.38 -8.5 203.39
SBI Blue Chip Fund (G) 26.45 -2.5 2,321.05
Small & Mid Cap NAV 1 yr Return AUM (Rs. cr.)

Can Robeco Emerg-Equities (G) 55.12 -4.7 591.70
DSP-BR Micro Cap Fund - RP (G) 39.19 3.0 1,974.21
Mirae Emerging Bluechip Fund (G) 28.83 -0.5 822.89
Diversified Equity NAV 1 yr Return AUM (Rs. cr.)

ICICI Pru Exp&Other Services-RP (G) 44.12 4.9 612.34
ICICI Pru Value Discovery Fund (G) 103.24 -7.7 9,304.29
L&T India Value Fund (G) 23.21 -1.5 307.18
Principal Emerging Bluechip(G) 61.42 -8.0 482.94
UTI MNC Fund (G) 139.99 -1.1 1,358.59
Thematic - Infrastructure NAV 1 yr Return AUM (Rs. cr.)

Franklin Build India Fund (G) 25.42 -11.7 455.95
Kotak Infras. & Eco Reform -Standard (G) 13.70 -9.4 134.35
ELSS NAV 1 yr Return AUM (Rs. cr.)

Axis Long Term Equity Fund (G) 28.30 -6.2 5,771.56
Religare Invesco Tax Plan (G) 32.43 -5.3 246.74
Index NAV 1 yr Return AUM (Rs. cr.)

GS Nifty BeES 743.50 -14.0 828.62
47
Debt Long Term NAV 1 yr Return AUM (Rs. cr.)
HDFC High Interest - Dynamic (G) 49.29 3.3 1,545.97
IDFC Dynamic Bond-Regular Plan (G) 17.50 4.5 2,957.71
Tata Dynamic Bond - Regular Plan (G) 22.54 5.3 559.83
Debt Short Term NAV 1 yr Return AUM (Rs. cr.)

Birla SL Short Term Fund (G) 55.80 8.4 1,695.64
DWS Banking & PSU Debt - RP (G) 12.79 7.9 302.54
L&T Short Term Opport. (G) 14.24 7.7 304.66
Credit Opportunities Funds NAV 1 yr Return AUM (Rs. cr.)

Birla SL Short Term Opp-RP (G) 24.21 7.4 3,262.81
ICICI Pru Corporate Bond (G) 22.70 7.4 2,823.58
Ultra Short Term Debt NAV 1 yr Return AUM (Rs. cr.)

Axis Banking Debt Fund (G) 1,360.21 8.4 177.47
DWS Treasury -Investment - RP (G) 16.38 8.1 117.97
IDFC Banking Debt Fund-Regular (G) 12.75 8.4 672.39
Religare Invesco Credit Opp (G) 1,701.85 8.7 1,055.49
Gilt Long Term NAV 1 yr Return AUM (Rs. cr.)

L&T Gilt Fund (G) 35.98 4.9 57.75
SBI Magnum Gilt - LTP (G) 31.41 5.1 799.48
Balanced NAV 1 yr Return AUM (Rs. cr.)

Tata Balanced Fund - Regular (G) 157.15 -3.9 4,063.90
MIP Aggressive NAV 1 yr Return AUM (Rs. cr.)

Birla SL MIP II-Wealth 25 (G) 28.83 -0.2 976.32
UTI MIS - Advantage Plan (G) 31.35 3.5 538.12
48
Liquid NAV 1 yr Return AUM (Rs. cr.)
Axis Liquid Fund - Reg. (G) 1,649.19 8.3 4,297.85
HDFC Liquid Fund (G) 2,936.87 8.3 11,060.88
Sundaram Money-Super Inst (G) 31.38 8.2 1,815.74
Tata Money Market Fund - Regular (G) 2,342.33 8.3 1,719.92
Interpretations:
 Large Cap funds have given a negative returns of around 2-10% in the last one year.
 Small Cap funds have given inconsistent returns between - 4% and 3% in the last one year.
 Most of the diversified equity funds have given a negative return in the last one year.
 Thematic Infrastructure have given negative returns in the last one year.
 ELSS funds have also given negative return in the last one year.
 Index funds have given a negative return of 14% in the last one year.
 Long Term Debt funds have given a return of 3-5% in the last one year.
 Short Term funds have given a return of 8% in the last one year.
 Credit Opportunities funds have given a return of 7.4% in the last one year.
 Ultra Short Term Debt funds have given a return of 8% in the last one year.
 Gilt Long Term funds have given a return of 5% in the last one year.
 Balanced funds have given a negative return of 4% in the last one year.
 MIP Aggressive funds have given a return of 3% in the last one year.
 Liquid funds have given a return of over 8% in the last one year.
49
RETURNS FROM CURRENCY TRADING
Dollar Rupee – Last 5 Years Trend
Interpretation: The value of dollar has increased fromRs.45 per Dollar to Rs.67.5 per dollar in
the last five years.
LIFE INSURANCE RETURNS
Insurance is an attractive option for investment. While most people recognize the risk hedging
and tax saving potential of insurance, many are not a aware of its advantages as an investment
option as well. Insurance products yield more compared to regular investment options and this is
besides the added incentives (bonuses) offered by insurers.
You cannot compare an insurance product with other investment schemes for the simple reason
that it offers financial protection from risks something that is missing in non-insurance products.
In fact, the premium you pay for an insurance policy is an investment against risk. Thus, before
comparing with other schemes, you must accept that a part of the total amount invested in life
insurance goes towards providing for the risk cover, while the rest is used for savings.
50
In life insurance except for term insurance, unlike non-life products you get maturity benefits on
survival at the end of the term. In other words, if you take a life insurance policy for 20 years and
survive and survive the term, the amount invested as premium in the policy will come back to you
with added returns.
In the unfortunate event of death within the tenure of the policy the family of the deceased will
receive the sum assured.
Now let us compare insurance as an investment options. If you invest INR 10000 in PPF, your
money grows to Rs.10950 at 9.5% interest over a year. But in this case, the access to your funds
will be limited. One can withdraw 50% of the initial deposit only after 4 years. The same amount
of Rs.10000 can give you an insurance cover of up to approximately Rs.5 – 11 lakh (depending
upon the plan, age and medical condition of the life insured etc) and this amount can become
immediately available to the nominee of the policyholder on death. Thus insurance is a unique
investment avenue that delivers sound returns in addition to protection.
LIFE INSURANCE AS “TAX PLANNING”
Insurance serves as an excellent tax saving mechanism too. The Government of India has offered
tax incentives to life insurance products in order to facilitate the flow of funds into productive
assets. Under section 88 of income tax act 1961, an individual is entitled to a rebate of 20% other
annual premium payable on his/her and life of his/her children or adult children.
RETURNS FROM REAL ESTATE
Indian property market is always considered as a strong seller’s market but the latest Makaan.com
Property Index (MPI) indicates that the property market has now started showing signs of turning
in favour of buyers. The latest MPI report for the third quarter of 2016, indicates softening in
property rates in major cities in India.
Home buyers had adopted a wait and watch approach for a longer duration owing to high property
rates & an even higher home loan interest rates. This reduced the volume of property transactions
considerably leading to an increase in unsold inventory in most Indian real estate markets.
51
In the quarter July 2016 to September 2016, there are steep downward swings in property prices
across all the major cities and sub-cities. Mumbai, Delhi, Kolkata, Ahmedabad, Bangalore,
Hyderabad , Pune, Gurgaon and Faridabad registered a drop. Property prices remained stable in
Chennai, Navi Mumbai and Ghaziabad and prices at Chandigarh, Mumbai Thane and Noida
witnessed an increase
On the National level the Prices for properties shows a negative trend. The latest figures for Jul-
Sept 2016 from the real estate market research and analysis point to a nation-wide decrease of
8.1%. This means, the property prices for the quarter have down by 8.1%, this makes the property
market extremely lucrative for the buyers.
52
INVESTOR PREFERENCES TOWARDS FINANCIAL MARKETS
1. Age of the Respondent
Table 1: Respondent’s Age
S.No. Age No. of Respondents Percentage (%)

1 <=24 8 16%
2 25-28 18 36%
3 29-32 22 44%
4 >33 2 4%
Total 50 100%
Source: Primary Data
Figure 1: Respondent’s Age
Age Of Respondents
25
22
20 18
No. of Respondents
15
10 8
5
2
0
<=24 25-28 29-32 >33
Age
Interpretation
The above graph illustrates that majority of the respondents i.e. people are in the age group of 29-32
years. Eight respondents in the survey are less than or equal to 24; 18 persons are in the age between
25-28 years; and only 2 persons are aged about 33 years.
53
2. Profession
Table 2: Profession Of The Respondents
S. No. Option No. of Respondents Percentage (%)

1 Businessman 11 22%
2 Private Employed 18 36%
3 Government Employed 16 32%
4 Others 5 10%
Total 50 100%
Figure 2: Profession Of The Respondents
Profession Of The Respondents

20
18
16
15
No. of Respondents
11
10
5
5
0
Businessman Private Employed Government Employed Others
Interpretation
Of the 50 sample chosen for the survey, 36% of the respondents, representing 18 people, are privately
employed. 32% of the respondents are government employed, while 22% are businessman,
representing 11 people.
54
3. Marital Status
Table 3: Marital Status
S. No. Option No. of Respondents Percentage (%)

1 Married 36 72%
2 Single 14 28%
Total 50 100%
Figure 3: Marital Status
Marital Status
No
28%
Yes
72%
Interpretation
Out of the total 50 sample chosen, 36 respondents are married and 14 people are not married. The
marital status of a person has much of importance while making investments, as people tend to invest
more money, keeping in mind of the future of their children.
55
4. Income Level Of The Respondents
Table 2: Respondents Income Levels
S.No. Reasons No. of Percentage (%)

Respondents
1 <5,000 Rs - 0%
2 5,000 – 10,000 19 38%
3 10,000 – 20,000 30 60%
4 Above 20,000 1 2%
Total 50 100%
Figure 4: Respondents Income Levels
36
30
No. of Respondents
24
19
12
0 1
0
<5,000 Rs 5,000 – 10,000 10,000 – 20,000 Above 20,000
Interpretation
The above table shows that over 60% of the respondents are in the higher income group of more than
Rs. 10,000 income per month.
56
5. Preferred Sector For Investing Money
Table 5: Customer Preferred Investment Sector
S.No. Option No. of Respondents Percentage (%)

1 Private Sector 28 56%
2 Government Sector 22 44%
Total 50 100%
Figure 5: Customer Preferred Investment Sector
Preferred Investment Sector
Government
Sector
44%
Private Sector
56%
Interpretation
The above graph depicts that 28 of the total 50 respondents prefer to invest their money in private
sector, while 22 people prefer to invest in government sector.
57
6. Preferred Investment Plan
Table 6: Individual’s Preferred Investment Plan
S.No. Type of Investment No. of Respondents Percentage (%)

1 Bank FD 8 16%
2 ULIP 13 26%
3 Mutual Funds 10 20%
4 Stock Market 11 22%
5 SIP 8 16%
Total 50 100%
Figure 6: Individual’s Preferred Investment Plan
Individual’s Preferred Investment Plan

15
13
11
No. of Respondents
10
10
8 8
0
Bank FD ULIP Mutual Funds Stock Market SIP
Interpretation
The above graph indicates that 26% of the respondents, representing 13 people, prefer to invest in
ULIPs, 11 people preferred investing in stocks, and 10 people preferred investing in mutual funds.
58
7. How much term of Investment Plans do you like most?
Table 7: Customer’s Choice On Term Period For Investment Plan

1 0-3 Years 14 28%
2 3-6 Years 21 42%
3 6-10 Years 10 20%
4 Above 10 Years 5 10%
Total 50 100%
Figure 7: Customer’s Choice On Term Period For Investment Plan
Term Period Of Investment Plans

24
21
No. of Respondents
18
14
12 10
6 5
0
0-3 Years 3-6 Years 6-10 Years Above 10 Years
Attributes
Interpretation
The above graph indicates that 21 of the respondents preferred 3-6 years investment plans, while 10%
people preferred 6-10 years investment plans. 14 people, representing 28% of the sample, preferred the
plans where the term period ranges between 0-3 years.
59
8. Factors Influencing Investment Plans
Table 8: Factors Influencing Investment Plans

1 Growth 12 24%
2 Risk Cover 20 40%
3 Tax Benefit 8 16%
4 All of the Above 10 20%
Total 50 100%
Figure 8: Factors Influencing Investment Plans
Factors Influencing Investment Plans

18
12
No. of Respondents
12
10
8
0
Growth Risk Cover Tax Benefit All of the Above
Interpretation
The above graph illustrates that majority of the people (40%) feel that risk cover is the primary attribute
for making investments in the financial markets. 24% of the respondents said that growth of wealth is
the factor for their investments, while 20% said all of the above factors.
9. Risk Preference In Investment Plans
Table 9: Customers Risk Preference While Taking Decision On Investments
60
1 High Risk 10 20%
2 Moderate Risk 15 30%
3 Low Risk 25 50%
Total 50 100%
Figure 9: Customers Risk Preference While Taking Decision On Investments
Customers Risk Preference While Taking Decision On Investments

28
25
No. of Respondents
21
15
14
10
0
High Risk Moderate Risk Low Risk
Interpretation
The above graph indicates that 50% of the people preferred low risk, whereas 30% of the respondents
preferred moderate risk. High risk sample was low with 20%. It has been observed in the survey that
people who are of below 30 have willingness to achieve high growth for fulfill their dreams and
therefore, they want to invest their money in pure equity market rather then debt or money market.
61
10. Have You Ever Used Mutual Fund As An Investment Before?
Table 10: Usage Of Mutual Funds As An Investment By Investors

1 Yes 14 28%
2 No 36 72%
Total 50 100%
Figure 10: Usage Of Mutual Funds As An Investment By Investors
Usage Of Mutual Funds As An Investment By Investors
No
72%
Yes
28%
Interpretation
The above graph indicates that 36 respondents never invest their money in mutual funds while 14
respondents said that they invest their money in mutual funds, anticipating low risk and good returns.
62
11. Do You Consider Inflation As A Significant Risk Before Making Investments?
Table 11: Investors Consideration On Inflation Before Making Investment Decisions
S.No. Attribute No. of Respondents Percentage (%)

1 Yes 32 64%
2 No 18 36%
Total 50 100%
Figure 11: Investors Consideration On Inflation Before Making Investment Decisions
Investors Consideration On Inflation Before Making Investment

Decisions
Yes
64%
No
36%
Interpretation
The above graph illustrates 64% of the respondents said that they consider the inflation rates before
making investment decisions, aniticipating the higher the inflation rate, the lesser the return on
investments. 36% of the respondents, representing 18 people said that they would not take into account
the inflation rate when making investment plans.
63
12. Is A Down Period In The Stock Market A Buying Opportunity?
Table 3: Customers Perception On Buying When The Stock Market Is Down

1 Yes 42 84%
2 No 8 16%
Total 50 100%
Figure 1: Customers Perception On Buying When The Stock Market Is Down
Customers Perception On Buying Shares When The Stock Market

Is Down
Yes
84%
No
16%
Interpretation
The above graph indicates that 84% of respondents believe that a down period of stock market is a
good opportunity for buying companies’ stocks, because they can buy more shares at a lesser price.
16% of the respondents said that a down trend in share market will not influence much in their
investments plans.
64
13. Is Life Insurance Reliable For Investment?
Table 4: Customers Preference Of Life Insurance As An Investment

1 Yes 45 90%
2 No 5 10%
Total 50 100%
Figure 2: Customers Preference Of Life Insurance As An Investment
Customers Preference Of Life Insurance As An Investment
Yes
90%
No
10%
Interpretation
The above graph indicates that 90% of respondents prefer life insurance as the most reliable investment
plan. Only 10% of the people said that life insurance is not the most reliable investment plan.
65
14. Preferred Company For Insuring Life
Table 5: Preferred Company For Insuring Life

1 LIC 30 60%
2 Bajaj Alliance 8 16%
2 ICICI 8 16%
2 HDFC Standard Life 4 8%
Total 50 100%
Figure 3: Preferred Company For Insuring Life
Preferred Company For Insuring Life

32 30
No. of Respondents
24
16
8 8
8
4
0
LIC Bajaj Alliance ICICI HDFC Standard Life
Interpretation
The above graph indicates that 60% of respondents prefer LIC as the most reliable company for life
insurance. Only 8% of the people preferred HDFC for life insurance.
66
15. Do you advise your friends to invest in financial markets?
Table 6: Advise Friends To Invest In Financial Markets

1 Yes 43 80%
2 No 7 20%
Total 50 100%
Figure 4: Advise Friends To Invest In Financial Markets
Yes
86%
No
14%
Interpretation
The above graph indicates that 43 people representing 86% said that they would advise their friends in
investing in financial markets, while only 7 people said they would not advise their friends in investing
in financial markets.
67
FINDINGS
 Investors saving their money in banks are getting a return of around 9 – 10% Per annum.
 Investment in provident fund has been yielding a return of around 8.5% per annum.
 Investments in post office have also been giving returns between 8 – 9% based on different
schemes.
 Stock Markets have been giving outstanding results over the last few years. Markets have
given a return of 14% , 10%, 8% and 30% return over the last few years successively.
 Investors in the initial public offerings (IPO) have also made decent returns over the last
five years. Index has increased by around 50% since its launch.
 Gold prices have increased by around 70% in the last five years, but silver has remained
volatile even though it has given similar returns.
 Investors buying dollars and other currencies has also made decent returns due to the
gradual fall of rupee over the last few years.
 Life Insurance is primarily seen as a contingency investment rather than for returns by most
of the investors. Some investors also see it is a tax saving investment.
 Real estate prices have given volatile returns in different cities even though they have given
good returns overall in the long run. Of late, the sector has been seeing losses because of
oversupply and consolidation.
68
SUGGESTIONS
 Investors with low risk tolerance are advised to invest safer and steady investments like
Bank Deposits, Provident Fund and Post Office Saving Schemes.
 Middle class investors with knowledge on financial markets are advised to invest in stocks
and commodities as they have been giving very good returns in the recent years.
 Risky investors can afford to invest in Currencies and Real Estate markets.
 The creation of awareness about the need and importance of modern Investments is vital
 New product innovation, low money investment plans and better service is crucial for the
company to increase its market share
 Majority of the respondents are not much aware on the returns if invested in mutual funds.
So necessary measures should be taken by creating awareness about the low risk involved
in investing in this product
 Become more creative in capturing a wider range of customers by using multiple

distribution channels
 36% of the respondents, representing 18 people, are privately employed. 32% of the
respondents are government employed, while 22% are businessman, representing 11
people
 28 of the total 50 respondents prefer to invest their money in private sector, while 22 people
prefer to invest in government sector
 26% of the respondents, representing 13 people, prefer to invest in ULIPs, 11 people

preferred investing in stocks, and 10 people preferred investing in mutual funds
 21 of the respondents preferred 3-6 years investment plans, while 10% people preferred 6-
10 years investment plans. 14 people, representing 28% of the sample, preferred the plans
where the term period ranges between 0-3 years
 40% of the respondents feel that risk cover is the primary attribute for making investments
in the financial markets
69
 50% of the people preferred low risk, whereas 30% of the respondents preferred moderate
risk while investing in financial markets
 Due to political uncertainty, the stock market is highly volatile hence people were very
scared for investment
 Company is getting its most of business in investments from ULIPs and share market
 Many of respondents agreed that down stock period is a good buying opportunity.
 The creation of awareness about the need and importance of modern Investments is vital
 New product innovation, low money investment plans and better service is crucial for the
investment companies to increase their market share
 Majority of the respondents are not much aware on the returns if invested in mutual
funds. So necessary measures should be taken by creating awareness about the low risk
involved in investing in this product
 Become more creative in capturing a wider range of customers by using multiple

distribution channels
70
CONCLUSION
Change is very important and one whose goes which the changing environment always
succeeds, that is what I have learnt from the study. The competition has grown too much in the
Investment Sector with the opening of the sector.
On the basis of the project I can conclude that today, the market scenario is totally change
because people becoming more aware about new Investment plans which provides better growth
and more tax benefit. In earlier we invested our money in like FD, Kisan Vikas Patra, Provident
fund, Saving account and etc. but after some time of globalization we want to invest our money in
modern investment plans like Stock market, ULIP, MFs, SIP, Commodities, Real Estate and etc.
So people have moved gradually into that financial market because it is more attractive.
Any investor before investing should take into consideration the safety, liquidity, returns,
entry/exit barriers and tax efficiency parameters. We need to evaluate each investment option on
the above-mentioned basis and then invest. Today an investor faces too much confusion in
analyzing the various investment options available and then selecting the best suitable one. In the
present project, investment options are compared on the basis of returns as well as on the
parameters like safety, liquidity, term holding etc. thus assisting the investor as a guide for
investment purpose.
This is a project about analysis of investments which is modernizing or modifying day by

day in financial markets. The sooner one starts investing the better. By investing early, you allow
your investments more time to grow, whereby the concept of compounding increases your income,
by accumulating the principal and the interest or dividend earned on it, year after year.
71
REFERENCES
Reference Books
 Marketing management : Philip Kotlar

 Research and Methodology : C.K. Kothari
 Direct Taxes : Dr. Vinod K. Singhania
&
: Dr. Kapil Singhania
Newspapers:
 Times of India
 Business Standard
Websites:
 http://en.wikipedia.org/wiki/Financial_market
 www.iciciprulife.com
 www.stockmaster.com
 www.greekshares.com
Search Engine:
 www.google.com
 www.wikipedia.com
72
QUESTIONNAIRE
Name………………………………………….
Occupation……………………………………
Contact No…………………………………....
1. Profession
a. Businessman [ ]
b. Private Employed [ ]
c. Government Employed [ ]
d. Others [ ]
2. Marital Status
a. Married [ ]
b. Single [ ]
3. Preferred Sector For Investing Money

a. Private Sector [ ]
b. Government Sector [ ]
4. Preferred Investment Plan

a. Bank FD [ ]
b. ULIP [ ]
c. Mutual Funds [ ]
d. Stock Market [ ]
5. How much term of Investment Plans do you like most?

a. 0-3 years [ ]
b. 3-6 years [ ]
c. 6-10 years [ ]
d. Above 10 years [ ]
73
6. Factors Influencing Investment Plans
a. Growth [ ]
b. Risk Cover [ ]
c. Tax Benefit [ ]
d. All of the above [ ]
7. Risk Preference In Investment Plans

a. High Risk [ ]
b. Moderate Risk [ ]
c. Low Risk [ ]
8. Have You Ever Used Mutual Fund As An Investment Before?

a. Yes [ ]
b. No [ ]
9. Do You Consider Inflation As A Significant Risk Before Making Investments?

a. Yes [ ]
b. No [ ]
10. Is A Down Period In The Stock Market A Buying Opportunity?

a. Yes [ ]
b. No [ ]
11. Is Life Insurance Reliable For Investment?

c. Yes [ ]
d. No [ ]
12. Preferred Company For Insuring Life

a. LIC [ ]
b. Bajaj Alliance [ ]
74
c. ICICI [ ]
d. HDFC [ ]
13. Do you advise your friends to invest in financial markets?

a. Yes [ ]
b. No [ ]
75

Investments in Financial Markets

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Investments in Financial Markets

Uploaded by

Copyright:

Available Formats

INTRODUCTION

The financial markets can be divided into different subtypes:

 Capital markets which consist of:

 Stock markets, which provide financing through the issuance of shares

 Commodity markets, which facilitate the trading of commodities.

 Derivatives markets, which provide instruments for the management

 Insurance markets, which facilitate the redistribution of various risks.

 Foreign exchange markets, which facilitate the trading of foreign exchange.

A study on investment in financial markets is required for the following reasons:

To keep the value of your money from inflation

To get a good return from your idle money

To satisfy your future financial goals

Provide enough money for meeting uncertain future needs

This study is aimed at providing useful insights so as to give an idea on

 To do the comparative analysis of different options in financial markets.

 To analyze the returns and risks of different investments.

 To create awareness among the customers on different investment avenues.

 To suggest the best investment opportunities for potential investors.

 Financial Markets are dynamic in nature

 The research is confined to limited investment plans

 The study is limited to investments in financial markets only. Other investments

 The information related to investment in financial markets is very confidential,

 The time is also one of the hindrances in the research

 Some important information may not be available due to confidentiality involved

 Secondary data may not be authentic.

There are two types of data collection

 Field survey, panel research and observation approach etc.

Sources of Secondary Data:

When to start Investing:

Before making any investment, one must ensure to:

1. Obtain written documents explaining the investment

2. Read and understand such documents

5. Assess the risk-return profile of the investment

6. Know the liquidity and safety aspects of the investment

7. Ascertain if it is appropriate for your specific goals

8. Compare these details with other investment opportunities available

9. Examine if it fits in with other investments you are considering

10. Deal only through an authorized intermediary

12. Explore the options available to you if something were to go

Factors Determining Interest Rates:

 Demand for money

 Level of Government borrowings

Options Available for Investment:

One may invest in:

 Physical assets like real estate, gold/jewelry, commodities etc. and/or

Investment Plan in the Past Scenario:

1. Bank Fixed Deposits

2. Saving Bank Account

3. Post Office Savings

4. NSC (National Savings Certificates)

5. Kisan Vikas Patra

1. Bank Fixed Deposits:

3. Post Office Savings:

4. National Savings Certificates:

National Savings Certificates (NSC) are certificates issued by Department of

5. Kisan Vikas Patra:

 An adult in his own name, or on behalf of a minor,

 Two adults jointly

Investment Plan in the Present Scenario:

A mutual fund is a group of investors operating through a fund manager to purchase

ULIP provides multiple benefits to the consumer. The benefits include:

 Investment and Savings

 Adjustable Life Cover