Jaideb, S Final Edited Report

CHAPTER -1
A: INTRODUCTION
B: NEED OF STUDY
C: SCOPE OF STUDY
D: OBJECTIVE OF STUDY
INTRODUCTION
Indian Stock market has undergone tremendous changes over the years. Investment in
Stocks has become a major alternative among Investors. The project has been carried
out to understand investor’s perception about stock market in the context of their
trading preference, their portfolio management, explore investor’s risk perception &
satisfaction of the services obtained.
The methodology used was data collection using Schedule & Questionnaire. The
target customers were Investors who are trading in the stock market. The area of
survey was restricted to people residing in Allahabad.
Investment in share markets are based on analysis & reasoning which help to predict
market to some extent. Through the years a number of technical’s & theories for
analysis have evolved, these combined with modern technology guides the investor.
The big players in the market, like Foreign Institutional Investors, Mutual Funds, etc.
have the expertise for various analytical tools & make use of them. The speculator
invests for a short period for instant gains & his investment are based on market
sentiments, inside information, through grapevine, tips & intuition. The small
investors depend on brokers and brokerage house for his investments.
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NEED
In recent years a large number of players have entered into his market. The level of
competition is so high that retaining existing customers or getting new customers by
good word of mouth from existing customers is very important. This clearly shows the
importance of knowing how satisfied our present customers are.
It is with this backdrop that the study is being initiated. We are trying to find out how
satisfied the existing customers are and also trying to find out what are the crucial
factors that customers look for. This will help in improving methods by which the
overall performance can be improved and key indicators of customer dissatisfaction
shall be documented and supported by objective information.
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SCOPE
This project also throws light on the Capital Market and broking services. During my
Summer Training project, I have analyzed Investor’s behaviors on stocks. I have tried
to analyze the equity instruments and the Market Trend.
I have given a brief introduction about the instruments, and various clearing and
settlement process in Equity buying and selling. Then I have tried to analyze portfolio
of various investors as per the Market investor and Market Trend.
It gives you an Introduction about the Stock Market Introduction and Brokerage firm
role in securities Market, various terms used in it and the types of Market Participant,
who use these Instruments. The basic purpose of this project is analyze Investor‘s
perception & their portfolio strategy in respect of changing market scenario, and also
buying and selling patterns and time for that. However, major volumes are related to
Research on some stock strategy in equity selling which is a major part of Equity
market.
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OBJECTIVE
1. To find out Satisfaction level of Investors with respect to their existing broker.
2. To find out awareness of competitor’s products among Investors.
3. Investors Preference & Investment patterns.
4. To present and analyze various strategies in different market situations for
players of different profiles.
5. This work is intended to be useful for researchers, traders, portfolio managers,
financial institutions, mutual funds, corporate and student finance.
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CHAPTER -2
A: RESEARCH METHODOLOGY
a- Sample Size
b- Methods of Data Collection
c- Instrument Used
B: LIMITATION
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RESEARCH METHODOLOGY
Sample Size
The Sample consists of 100 investors from various broker’s premises.
Methods Of Data Collection
Primary Data was collected through survey among investors. The procedure adopted
to select sample was simple random sampling.
Secondary data was collected through firm’s internal sources, website of different
stock exchanges, business magazines & journals.
Instrument Used
The data was collected through using Schedule & Questionnaire to different investors.
The research design is analytical in nature. A questionnaire was prepared and
distributed to Investors. The investor’s profile is based on the results of a
questionnaire that the Investors complete.
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LIMITATIONS
 Limitations in regards with the Sample Selections:
The sample under study is relatively small, limited to field research for 100
Investors in the Stock market & conducted only in Allahabad. The responses are
subjected to customer bias.
 A more extended geographical sample may show greater difference in
perceptions.
 It would be interesting, in further research, to correlate perceptions of services
in terms of customer satisfaction, or factor analysis on the various services
expected by customers. The Sample size may be extended to include other
services also.
 Limited Time for conducting the study.
 Respondents were not interested to disclose details.
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CHAPTER -3
COMPANY PROFILE
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Religare is driven by ethical and dynamic process for wealth creation. Based on this,
the company started its endeavour in the financial market.
Religare Enterprises Limited through Religare Securities Limited, Religare Finvest
Limited, Religare Commodities Limited and Religare Insurance Advisory Services
Limited provides integrated financial solutions to its corporate, retail and wealth
management clients. Today, we provide various financial services which include
Investment Banking, Corporate Finance, Portfolio Management Services, Equity &
Commodity Broking, Insurance and Mutual Funds. Plus, there’s a lot more to come
your way.
Religare is proud of being a truly professional financial service provider managed by
a highly skilled team, who have proven track record in their respective domains.
Religare operations are managed by more than 2000 highly skilled professionals who
subscribe to Religare philosophy and are spread across its country wide branches.
Today, we have a growing network of more than 150 branches and more than 300
business partners spread across more than 180 cities in India and a fully operational
international office at London. However, our target is to have 350 branches and 1000
business partners in 300 cities of India and more than 7 International offices by the
end of 2006.
Unlike a traditional broking firm, Religare group works on the philosophy of
partnering for wealth creation. We not only execute trades for our clients but also
provide them critical and timely investment advice. The growing list of financial
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institutions with which Religare is empanelled as an approved broker is a reflection of
the high level service standard maintained by the company.
COMPANY PROFILE
RELIGARE Securities Ltd. (RSL) is a wholly owned subsidiary of RELIGARE

Financial Services Ltd. (RFSL), a Company promoted by the late Dr. Parvinder Singh,
Ex-CMD of Ranbaxy Laboratories Ltd.
The primary focus of RSL is to cater to services in Capital Market Operations to
Institutional Investors. The Company is a member of the National Stock Exchange
(NSE) and OTCEI. The growing list of financial institutions with whom RSL is
empaneled, as approved Broker is a reflection of the high levels of services
maintained by the Company.
As on date the Company is empaneled with UTI, IDBI, IFCI, SBI, BOI-MF, Punjab
National Bank, PNB-MF, Oriental Insurance, GIC, UTI-Offshore, ICICI Canbank
MF, Punjab & Sind Bank, Pioneer ITI, SUN F&C, IDBI Principal, Prudential ICICI,
ING Baring and J M Mutual Fund.
RELIGARE was founded with the vision of providing integrated financial care driven
by the relationship of trust. The bouquet of services offered by RELIGARE includes
Broking (Stocks and Commodities), Depository Participant Service, Advisory on
Mutual Fund Investments and Portfolio Management Services.
RELIGARE is a pioneer in the concept of partnership to reach multiple locations in

order to effectively service its large base of individual clients. Besides the reach of
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RELIGARE, the clients of the company greatly benefit by its strong research
capability, which encompasses fundamentals as well as technicals.
GROUP STRUCTURE:-
RELIGARE in recent years has expanded its reach in health care and financial
services wherein it has mutiple speciality hospital and labs which provide health care
services and mutiple financial services such as secondary market equity services,
portfolio management services, depository services etc.
RELIGARE financial services group comprises of Religare Securities
Limited, RELIGARE Comdex Limited, and RELIGARE Finvest Limited which
provide services in Equity, Commodity and Financial Services business & Religare
Insurance Advisory Ltd.
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RELIGARE SECURITIES LIMITED
1. Member of National Stock Exchange of India and Bombay Stock

Exchange of India.
2. Depository Participant with National Securities Depository
Limited (NSDL) and Central Depository Services Limited
(CDSL).
3. A SEBI approved Portfolio Manager.
RSL provides platform to all segments of the investor to leverage the immense
opportunity offered by equity investing in India either on their own or through
managed funds in Portfolio Management.
RELIGARE COMDEX LIMITED
Member of National Commodity Derivative Exchange and Multi Commodity

Exchange.
FCL provides platform to both agro and non agro commodity traders to derive the
actual price of the commodity and also to trade and hedge actively in the growing
commodity trading market in India.
RELIGARE FINVEST LIMITED
A RBI approved Non-banking finance company.
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FFL provides fund based financial services such as loan against shares, IPO financing
and other allied services.
RELIGARE is a truly professional corporate backed financial service provider

with very sound financial base and backing. RELIGARE is managed by team of
highly skilled professional who have proven track record in their respective domains.
RELIGARE has the widest reach in India through its Regional, Zonal and
Branch Offices spread across the country.
RELIGARE INSURANCE ADVISORY LTD
Religare has been taking care of financial services for long but there was a missing
link. Financial planning is incomplete without protective measure i.e. structured
products to take care of event of things that may go wrong.
Consequently, Religare is soon coming up with Religare Insurance Advisory Services
Limited. As composite insurance broker, we would deal in both insurance and
reinsurance, providing our clients risk transfer solutions on life and non-life sides.
This service will take benefit of Religare’s vast business empire spread throughout the
country -- providing our valued clients insurance services across India. We aim to
have a wide reach with our services – literally! That’s why we are catering the
insurance requirements of both retail and corporate segments with products of all the
insurance companies on life and non-life side.
Still, there is more in store. We also cater individuals with a complete suite of
insurance solutions, both life and general to mitigate risks to life and assets through
our existing network of over 150 branches – expected to reach 250 by the end of this
year!
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For corporate clients, we will be offering value based customized solutions to cover
all risks which their business is exposed to. An operations team equipped with the best
of technology support will support our clients.
Religare Insurance Advisory aims to provide neutral, transparent and professional risk
transfer advice to become the first choice of India.
PRODUCT & SERVICES
• Equity Trading
• Derivative Trading
• Commodity Trading
• Depository Services
• Margin Financing
• NRI – Desk Management
• Research & Technical Analysis
• Portfolio Management Services
• International Equity & Commodity
• Institutional Business
• Investing Banking
• Internet Trading ( RACE & RALLY )
BUSINESS & OPERATIONS
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BUSINESS
Over a period of time RSL has recorded a healthy growth rate both in business
volumes and profitability as it is one of the major players in this line of business.
The business thrust has been mainly in the development of business from Financial
Institutions, Mutual Funds and Corporate.
OPERATIONS
The operations of the company are broadly organized along the following functions.
RESEARCH & ANALYSIS
This group is focused on doing daily stock picks and periodical scrip segment specific
research. They provide the best of analysis in the industry and are valued by both our
Institutional and Retail clientele.
MARKETING
This group is focused on tracking potential business opportunities and converting

them into business relationships. Evaluating the needs of the clients and tailoring
products to meet their specific requirements helps the company to build lasting
relationships.
DEALING
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Enabling the clients to procure the best rates on their transactions & providing
customize portfolio is the core function of this group.
BACK OFFICE
This group ensures timely deliveries of securities traded, liaison with stock exchange
authorities on operational matters, statutory compliance, handling tasks like pay-in,
pay-out, etc. This section is fully automated to enable the staff to focus on the
technicalities of securities trading and is manned by professionals having long
experience in the field.
INFRASTRUCTURE
OFFICES
The company has offices located at prime locations in Mumbai, New Delhi, Kolkata
and Chennai. The offices are centrally located to cater to the requirements of
institutional and corporate clients and retails clients, and for ease of operations due to
proximity to stock exchanges and banks.
COMMUNICATIONS
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The company has its disposal, an efficient network of advance communication system
and intends to install CRM facility; besides this it is implementing interactive client
information dissemination system which enables clients to view their latest client
information on web. It has an installed multiple WAN to interconnect the branches to
communicate on real time basis.
The company is equipped with most advanced systems to facilitate smooth

functioning of operations. It has installed its major application on IBM machines and
uses latest state of art financial software.
MANAGEMENT
Mr. Sunil Godhwani is Chief Executive Officer and Managing Director of

RELIGARE Securities Limited. He is also the CEO & MD of the parent company
RELIGARE Financial Services Limited and is managing the entire operations of both
the companies.
CEO is supported by various HODs who are creditable professional of their respective
fields and they are further working with team of professionals consisting of Chartered
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Accountants, MBAs with varied experience in financial services and stock broking
functions.
The Board of Directors consists of Mr. Harpal Singh as Chairman and Mr. V.K. Kaul,
Mr. Malvinder Mohan Singh, Mr. Shivinder Mohan Singh as Directors.
DEPARTMENT HEAD
Retail Broking: Mr. Ashu Madan

Strategic Operations & Depository: Mr. Shachindra Nath
Back Office: Mr. Anil Saxena
Private Client Group: Mr. Atul Gupta
Research: Mr. Sanjay Kumar
CORPORATE STRUCTURE
Our organization is led by individuals who are professionals and leaders in every
sense of the word. Experts in their respective domains, esteem members of our Board
of Directors are:
Name Designation
Mr. Malvinder Singh Chairman
Mr. Vinay Kumar Kaul Director
Mr. Harpal Mohan Singh Director
Mr. Shivinder Mohan Singh Director
Mr. Sunil Godhwani M.D.
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DEPOSITORY PARTICIPANT SERVICES
RELIGARE Securities Ltd. has also ventured into depository services to cater to its
clients and is among leading depository services providers having more than 3000
Crore worth of security under its custody.
Why should you choose RSL as your financial partner? A summary of

our competitive advantages…
1. Participant on the country’s premier exchange: RELIGARE is a member of the
country’s premier stock exchange – The National Stock Exchange of India (NSE).
2. Clearing membership on Capital & Derivatives segments: It has clearing
memberships on both the Capital Market and Derivatives segment of the exchange.
We are also authorised to trade the retail debt market.
3. Depository Participants with NSDL & CDSL: We are depository participants
with the country’s premier depository service - National Securities Depository

Limited (NSDL), as well as with the only other depository with a countrywide
reach - Central Depository Services Limited (CDSL).
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4. Leading private sector bank as partner: Our banking partner is HDFC & ICICI
Bank – The foremost private sector bank in the country, which has the most
technologically advanced infrastructure in the country, with Internet banking
allowing access to information 24 X 7.
5. Bloomberg Information Services: The world’s two best information services are
Bloomberg LP and Reuters. These are prohibitively expensive for all but mutual
funds and financial institutions to own terminals of, and subscribe to. We however
have two connections to the Bloomberg Information Service, the premier service,
both in Delhi and Mumbai, and these provide us information ahead of the general
public, and at par with the financial institutions.
6. Access to breaking news from across the globe, and across asset classes, and
superior research and analysis capabilities.
7. Prime Office Locations: We have prime office locations in the nation’s political
capital and the business capital – Delhi and Mumbai, in the heart of the city.
8. Research Capabilities: We have a dedicated team of analysts in our Bombay
office – They provide fundamental analysis of stocks and markets, which are
fundamentally strong, and provide above market returns to investors, but over a
slightly longer time frame – Typically 6 months and above.
9. Technical Analysis: A daily technical newsletter is published by our in-house
technical analyst, who is a recognized leading practitioner of the science. He has a

success rate of over 73%. He tracks the progress of the calls on a real-time basis,
and advises of any change in the profit points or stop loss levels.
10. All Services under one roof: India has moved to a T+2 settlement system, where
all trades and settled on a rolling basis. However this gives the clients no time to
arrange deliveries to their broker, through a separate depository participant.
RELIGARE, being a trading-clearing member, as well as a depository participant,
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allows seamless transfer of securities under the same roof, with minimum delay,
and constant monitoring.
PORTFOLIO MANAGEMENT SERVICES
Religare Securities Ltd, (PMS Registration No. INP000000738) a company

promoted controlled and managed by the promoters of Ranbaxy. Ranbaxy is one of
the leading Indian pharma-research and pharmaceutical companies in India with a
global presence in 5 continents, spread over 40 countries. With an annual turnover of
close to 1.2 Billon US$ ('05 Sales), Ranbaxy is ranked amongst the 10 global generic
companies. Our overseas revenues contribute over 75% of sales. We have a presence
in 23 of top 25 pharma markets of the world.
INTRODUCTION
Portfolio management services is “ The art and science

of making decisions about investment mix and
policy , matching investments to objectives,
assets allocation for individuals and
institutions, and balancing risk vs.
performance”.
The main idea behind Portfolio Management Services is to manage our

client’s wealth more efficiently, reduce risk by diversifying across assets, sectors and
funds, and maximizing returns. Expert Portfolio Managers find best of avenues to
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achieve optimum returns at managed levels of risk. This service could also be called
as “transparent collective investments”. You get an upper hand in many ways.
WHY PMS?
(1) As a discerning investor, who understands the
risk-reward ratio, you want:-
 A portfolio comprising of select ideas.
 Ability to take focused bets both in stocks and sectors.
 Efficient allocation among assets, viz. Equity and Cash.
(2) PMS portfolios combine the benefits of

professional money management with the
flexibility, control of owning individual stocks or
other securities.
(3) PMS offers a higher level of information and

investors can receive:-
 Communications that include relevant information on major market
events.
 Quarterly performance updates.
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(4) Competitive and flexible fee structure:-
 As the costs of garnering assets are typically lower, PMS offerings

have attractive fee structures.
 Investors can choose a variable fee structure that is dependent on
the performance of the portfolio.
Mutual Fund vs. PMS
MUTUAL FUNDS PMS
PRODUCT Mass product Customized product
SERVICES No personalized service Personalized services in

available the form of access to
fund manager and
dedicated relationship
manager.
COSTS Entry/Exit Loads No entry/Exit Loads.
FEE STRUCTURE Fixed Option of fixed/

performance based fees
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PORTFOLIO No As per risk/reward
PROFILING appetite of the investor.
SECTOR/STOCK Yes No
LIMITS
UPDATES Monthly Daily
CROSS Yes No
SUBSIDIZATION
TRANSPARENCY No Yes
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ADVANTAGES OF HAVING RELIGARE’S
PORTFOLIO MANAGEMENT SERVICES.
 Constant monitoring of portfolio’s asset mix to ensure effectively position to
meet long-term objectives. Our portfolio managers adjust the asset mix to
reflect the current economic climate and to benefit from opportunities.
 Performance linked fees, constant disclosure of the portfolio on daily and
monthly basis.
 High water mark level for profit sharing.
 No transaction and custodian charges
 Schemes would also use derivatives both from the point of protection of
portfolio as well as for increasing the return from portfolio
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INVESTMENT PHILOSOPHY
 Mix of Top Down and Bottom Up.
 Stock specific selection procedure based on fundamental research for
making sound investment decisions.
 Focus on minimizing investment risk by following rigorous valuation
disciplines.
 Belief in serving investors by a disciplined investment approach- which
combines an understanding of the goals and objectives of the investor
with a fine tuned strategy backed by research.
 Capital Preservation.
 Selling discipline and use of derivatives for volatility.
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INVESTMENT PROCESS
 Reviewing publicly available historical information.
 Management meeting to get a better understanding of industry trends,

structure and peculiarities related to the industry.
 Preparing forecasted earnings model based on assumptions.
 Review meeting with the company management to validate the

assumptions.
 Using multiple valuation process for valuing the company which

included relative valuations (P/E, PEG, P/BV etc.), determining
intrinsic value based on DCF and sum of parts valuation.
 We follow strict selling discipline both in booking profits as well as

cutting losses in case the underlying premise of buying into a particular
stock has changed.
Valuation Validation Acquisition Revision
Identification Exit
INVESTMENT PROCESS
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WHY RELIGARE?
 Investment team consisting of fund managers and headed by CIO which ensures
collective decision making.
 More than 40 man years of cumulative work experience in capital markets.
 Institutional Research team comprising more than 15 professionals having an
experience ranging from 2-10 years.
 Benefit from a network of empanelled brokers and analysts from a wide
spectrum of broking outfits.
 Capabilities to identify emerging businesses at a nascent stage backed by
primary research.
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FUND MANAGEMENT TEAM
Our CIO is Mr. Kunj Bansal. He is an engineer and a management graduate and
has more than 10 years of Direct Experience in Equity Market. He was a part of
equity team which was awarded for the best fund performance from CNBC and
CRISIL. Mr. Bansal has also been adjudged as best fund manager by Business
Today. He is supported by two-fund managers Mr. Vipul Sanghvi and Chetan
Shah and a dedicated research team supports them.
NEWS AND EVENTS

We arrange meetings and conferences with our fund managers for some specific
information. We provide:
 Monthly market update, Market and Portfolio Performance Overviews prepared

by the Religare Portfolio Management Services Investment Team
 Performance Appraisal Statement
 Review of the Market
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DESCRIPTION
History, present business and background of the portfolio manager.
RSL is a member of the National Stock Exchange of India Limited (NSE) from
November, 1995, Bombay Stock Exchange Limited from October 2004 and also
Depository participant with National Securities Depository Limited (NSDL) since
July, 2000 and Central Depository Services India Limited (CDSL) since February,
2003.
Religare is imbued with the vision of providing integrated financial care driven by
the relationship of trust. The growing list of financial institutions with whom Religare
is empanelled, as approved broker, is a reflection of the high levels of services
maintained by the company. Religare has all India reach at multiple locations and it is
presently catering to institutional clients and a large number of retail & high net worth
clients.
Under the portfolio management schemes offered by Religare, the funds of investors
are managed by a team of professionals having long experience in the various facets
of equity markets such as Research, Fund Management, Dealing and institutional
sales.
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Promoters of the Portfolio manager,
directors and their background.
Promoters
RELIGARE Securities Limited is a wholly owned subsidiary of RELIGARE
Financial Services Limited.
DIRECTORS
• MR HARPAL SINGH
Mr. Harpal Singh has a diverse and wide-ranging experience of more than 27 years in
the corporate sector. He is an alumnus of The Doon School and B.A. (Honours)
Graduate in Economics from St. Stephens College, New Delhi. He also holds a
Masters’ Degree in Public Affairs from the CSCH, California, and U.S.A.
PREVIOUS EXPERIENCE
Starting with the Tata Administrative Services, Mr. Singh held senior positions in
Hindustan Motors, Telco and Board Level responsibility at Shaw Wallace.
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• MR VINAY KUMAR KAUL
Mr. Vinay Kumar Kaul is recognized in the industry for his variegated knowledge and
has more than 28 years of experience in Corporate Finance. After completing his
Graduation in Physics (Hons) from Ramjas College, University of Delhi, Mr. Kaul
acquired Chartered Accountant degree from The Institute of Chartered Accountants of
India.
CURRENT POSITION
He is also director in, RELIGARE Healthcare Limited, RELIGARE Financial

Services Limited, RELIGARE Comdex Limited and RELIGARE Finvest Limited.
PREVIOUS EXPERIENCE
Mr. Kaul joined Ranbaxy Laboratories Limited as Divisional Accountant in 1975 and
retired as Executive Vice President (Finance) and CFO in December, 2003.
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• MR MALVINDER MOHAN SINGH
An alumnus of the Doon School and an Honours Graduate in Economics from

St.Stephens College, Delhi, and Mr.Malvinder Mohan Singh is an MBA from the
Fuqua School of Business, Duke University, USA.
CURRENT POSITION
.He is director in RELIGARE Healthcare Limited, RELIGARE Financial Services

Limited, RELIGARE Comdex Limited and RELIGARE Finvest Limited.
PREVIOUS EXPERIENCE
Mr. Singh had led the India Region operations as Regional Director soon after his
successful tenure as Director, Global Licensing and Business Development. He joined
Ranbaxy Laboratories Limited in 1994 as a Management Trainee and has worked at
different positions in the functions of general management, sales & marketing, finance
and business development.
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• MR SHIVINDER MOHAN SINGH
An alumnus of the Doon School and an Honours Graduate in Mathematics from

St.Stephens College, Delhi, and Mr. Shivinder Mohan Singh is an MBA with
specialization in Healthcare management from the Fuqua School of Business, Duke
University, USA.
CURRENT POSITION
Mr. Singh is presently the Joint Managing Director of RELIGARE Healthcare and
leading a team which plans to leap frog to be the country’s largest healthcare /
pathology provide. He is also director in RELIGARE Financial Services Limited,
RELIGARE Comdex Limited and RELIGARE Finvest Limited.
PREVIOUS EXPERIENCE
Mr. Shivinder Mohan Singh is one of the principal promoters of RELIGARE

Healthcare Limited and SRL Ranbaxy Limited. He has been instrumental in
conceptualizing the healthcare delivery strategy and implementing the plans to make
RELIGARE Healthcare a major players in the front-end healthcare sector.
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• MR SUNIL GODHWANI
Mr. Sunil Godhwani holds an M.Sc.degree in Industrial Engineering from Polytechnic

Institute of New York, New York. He has rich business experience of more than 15
years.
CURRENT POSITION
Mr.Godhwani is CEO & MD of the parent company RELIGARE Financial Services

Limited and RELIGARE Securities Limited. He is also director in RELIGARE
Comdex Limited and RELIGARE Finvest Limited.
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TOP 10 GROUP COMPANIES/FIRMS.
 Ranbaxy Laboratories Limited.
 Religare Financial Services Limited.
 Oscar Investments Limited.
 Fortis Healthcare Limited.
 Religare Finvest Limited.
 Religare Comdex Limited.
 SRL Ranbaxy Limited.
 International Hospitals Limited.
 Ranbaxy Holding Company.
 Oscar Bio Tech (p) Limited.
HOW TO GET STARTED?
 Account can be opened by way of Fresh Inflow of Money or

Transfer of Securities or combination of both.
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 An investor can also invest with the corpus of cash and equity both
by any ratio.
 If an investor would like to utilize his portfolio management
services, Religare will work with him to define an investment

strategy, which best suits, his needs.
 Investor’s portfolio’s management will be adapted to his

objectives, to the accepted degree of risk and to his reference.
 Investor’s assets will be managed within a strategy framework

customized especially for his particular preferences.
DOCUMENTS REQUIRED:-
 Account Opening Form: - PMS Agreement, Power of
Attorney, Risk Disclosure Document.

 PAN Details, From No.60 (Declaration to be filled by a
person who does not have either have a PAN)
 Address proof which includes any of the following:-
 Ration Card.
 Passport.
 Driving License.
 Identity Card issued by any institution.
 Copy of the electricity bill or telephone bill
showing residential address.
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 Any document or communication issued by any
authority of Central Government, State
Government or local bodies showing residential
address.
 Any other documentary evidence in support of
his address given in the declaration.
 Initial money in cash or in securities or in both required to start
a portfolio of an investor.
 Identity Proof
 Photograph
Please find enclosed our Asset Allocation

as of June, 2009.
Details of services being offered by the

portfolio manager
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Discretionary Services
Under these services, the choice as well as the timings of the

investment decisions rest solely with the portfolio manager. In
other words the portfolio manager shall have the sole and absolute
discretion to invest clients’ funds in any type of securities and in
any market as he deems fit as per the executed agreement. The
securities invested /disinvested by the portfolio manager for clients
in the same scheme may differ from client to client. The portfolio
manager’s decision in deployment of the client‘s account is
absolute and final and can never be called in question or be open to
review at any time during the currency of the agreement or at
anytime thereafter. The right of the portfolio manager shall be
exercised strictly in accordance with the relevant acts, rules and
regulations, guidelines and notifications in force from time to time.
Periodical statements in respect to client’s portfolio shall be sent to

the respective client.
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Advisory Services
The Portfolio Manager will provide Advisory Portfolio Management

Services, in terms of the SEBI (Portfolio Manager) Regulations
1993, which shall be in the nature of investment advisory and shall
include the responsibility of advising on the portfolio strategy and
investment and divestment of individual securities on the client’s
portfolio, for an agreed fee structure, entirely at the Client’s risk.
The Portfolio Manager shall be solely acting as an advisor to the

portfolio of the client and shall not be responsible for the investment
/divestment of securities and /or administrative activities on the
client’s portfolio. The Portfolio Manager shall, provide advisory
services in accordance with such guidelines and / or directives
issued by the regulatory authorities and / or the Client, from time to
time, in this regard.
UNDER THE DISCRETIONARY SERVICES,

FIVE
SCHEMES ARE OFFERED TO INVESTORS:-
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PANTHER
TORTOISE
ELEPHANT
LEO
CATERPILLAR
SCHEMES SPECIFIC DETAILS:-

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PANTHER:-
 OBJECTIVE:-
The scheme aims to achieve higher returns by
taking aggressive positions across sectors and market capitalization.
 STRATEGY:-
 Investment strategy would be to invest across the sectors with a

view to take advantage of various market conditions.
 Efforts would be made to find out stocks which have triggers to
become multi-baggers in the market, backed by a turn-around, or
new product introduction, idea marketing, unveiling of valuation
and such other factors.
 Schemes would also aggressively use Derivatives both from the
point of protection of portfolio as well as for increasing the return
from portfolio.
 Panther scheme is aimed at high return with certain level of risk
appetite.
Suitability:-
The scheme is suitable for “High risk High Return”
investor.
44
Low Medium High
High
Medium
Low
Suitability
Investment horizon:-
The targeted investment horizon for investing in the
scheme should be in the range of 1-2 years.
 Portfolio turnover:-
Portfolio turnover of the scheme is expected to be high
as there might be a continuous reshuffling of the investments.
Schedule of charges:-
 Option I: Fixed Fee
45
Particulars Fees/Charg Mode of
es Payment
Management Fees 2% p.a. of the average Payable Quarterly
daily value of portfolio
 Option II: Profit Sharing
Particul Fees/Charges Mode of

ars Payment
Management 0.75% p.a. of investment amount. 50% payable at the
Fees (fixed) time of investment &
balance at the time of
redemption or at the
expiry of 12 months
which ever is earlier.
Management Up to 12% Return – Nil Payable at the time of
Fees (Profit >12%-18% Return – 10% of total profit profit call. *
sharing) >18%-24% Return – 15% of total profit
Above 24% Return – 20% of total profit
Minimum investment that is required to be

invested in panther scheme is Rs.25 lacs.
* Refers:
• Profit would mean realized gains, unrealized gains and dividend received.
• Re-investment of profit would be eligible for management fees.
• Profit call at the sole discretion of the fund manager.
46
Note: The uninvested amounts in all the above schemes may be
deployed in liquid Fund schemes, debt oriented schemes of mutual
Funds, gilt schemes bank deposits and other short term avenues for
investment. The portfolio manager, with consent of the client, may
lend the securities through an approved intermediary, for interest.
47
TORTOISE:-
Objective:-
The scheme aims to achieve growth in the portfolio
value over a period of time by way of careful and judicious investment in
fundamentally sound companies having good prospectus.
Strategy:-
 Investment strategy would be to invest in companies having

consistency in earnings growth and financial performance.
 The scheme would select the companies for investment after a
careful, research oriented due diligence procedure and
consideration of various risk involved.
 Emphasis would also be laid on subjective parameters like
corporate governance, management track record and intellectual
capability.
 The scheme will be open to investment in companies with
improving fundamentals as well.
Suitability:-
The scheme is suitable for “Medium Risk Medium Return”
investor.
Investment Horizon:-
The targeted investment horizon for investing in the
scheme should be in the range of 2 to 3 years.
Low Medium High
High
48
Medium
Low
Suitability
Portfolio Turnover:-
Portfolio turnover of the scheme is expected to be medium.

invested in Tortoise scheme is Rs.25 lacs.

es Payment
49
ars Payment
expiry of 12 months
Elephant:-
50
Objective:-
The scheme aims to generate steady return over a longer period by
investing in securities selected only from BSE 100 index and NSE 100 index.
Strategy:-
 Investment strategy would be to invest in the companies which

form part of BSE 100 and NSE 100 index, as these companies
have steady performance and reduce liquidity risk in the market.
 The scheme shall invest across the sectors from within this
predefined space and shall select stocks with long-term growth
prospects trading at modest relative valuations.
Suitability:-
The scheme is suitable for “Low Risk Low Return” investor.
Portfolio Turnover:-
Portfolio turnover of the scheme is expected to be Low.
Low Medium High
High
Medium
51
Low
Suitability
The targeted investment horizon for investing in the scheme should be in
the range of 3 to 4 years.

invested in Elephant Scheme is Rs.25 lacs.

es Payment

ars Payment
52
expiry of 12 months
 Option III: Relative performance

Fee.
Particulars Fees/Chares Mode of

Payment
Management Fees 1.0% p.a. of investment 50% payable at the time
(fixed) amount. of investment & balance
at the time of redemption
or at the expiry of 12
months which ever is
earlier.
Management Fees 35% of the total profit Payable at the time of
(Profit sharing) over Benchmark return profit call.*
(benchmark: BSE 100)
* refers
 Profit would mean realized gains, unrealized gains and dividend

received.
 Re-investment of profit would be eligible for management fees. Profit
call at the sole discretion of the fund manager.
Leo:-
53
Objective:-
The scheme seeks to provide medium to long term capital

appreciation by investing in stocks across the market capitalization range.
Investment strategy:-
 The investment strategies followed in LEO involves a mix of both

moderate and aggressive investment strategies.
 The aim is to have a balanced portfolio comprising selected picks
from both Tortoise and panther besides other stocks.
 The investment horizon for every stock is different and depends
upon market conditions. Exposure to derivatives is taken within
permissible regulations.
Minimum Investment amount: - Rs.5 Lacs.
Investment Philosophy:-
 Stock specific selection procedure based on fundamental
research for making sound investment decisions.
 Focus on minimizing investment risk by following
rigorous valuation disciplines.
 Effort is to enhance absolute returns for investors.
 Belief in serving investors by a disciplined investment
approach-which combines an understanding of the goals
and the objectives of the investor with a fine tuned
strategy backed by research.
 Capital Preservation.
 Selling discipline and use of derivatives for volatility.
Schedule of Charges:-
54
 Option IV: Fixed Fee for LEO
Particulars Fees/Charge Mode of

s Payment
Management Fees 2.5% P.a. of the average Payable quarterly
CATERPILLAR:-
Objective:-
55
Scheme aims to achieve capital appreciation over a long period of time
by investing in a diversified portfolio.
Investment Strategy:-
Investment strategy would be to invest in scrips which are poised to
get a rerating either because of change in business, potential fancy for a particular
sector in the coming years/months, business diversification leading to a better
operating performance, stocks in their early stages of an upturn or for those which are
in sectors currently ignored by the market.
Suitability:-
The scheme is suitable for investors with a high risk appetite.
Derivatives:-
Derivatives may be used depending upon the prevailing market conditions.
Investment Philosophy:-
 Stock specific selection procedure based on fundamental research for
making sound investment decisions.
 Focus on minimizing investment risk by following rigorous valuation
discipline.
 Effort is to enhance absolute returns for investors.
56
 Belief in serving investors by a disciplined investment approach
which combines an understanding of the goals and objectives of the
investor with a fine tuned strategy backed by research.
The targeted investment horizon for investing in the scheme should be in
the range of 1-3 years.
• Minimum investment required to be

invested in Caterpillar scheme is Rs. 1
crore.
• Mode of inflow can be in the form of Fresh
investment/ Securities
Transfer/Combination of both.
• Portfolio disclosure is made only after
scheme is fully invested.
PORTFOLIO DISCLOSURE:-
57
• Access through Web:
-Clients can see the portfolio details on web 24*365.
 Valuation Report
 Holdings Statement
 Transaction Report
 Gain/loss Report
 Corporate Action.
• Monthly Report:-
Containing all the details about the portfolio and a monthly news letter
on markets, stock idea and investment wisdom.
• Annual Audited Balance Sheet
Investment Details:-
• Minimum Investment Amount:
Resident Investors - Rs.25 lacs
Non Resident Investors - Rs.50 lacs
• Mode of Inflow:
Inflow can be in the form of cash and/or securities.
Risk Factors:-
58
• Investments in Securities are subject to market risks, which include price
fluctuation risks. There is no assurance or guarantee that the objectives of
any of the schemes will be achieved. The investment may not be suited to
all categories of investors.
• The post performance of the portfolio manager does not indicate the future
performance of the same scheme in future or any other future schemes of the
portfolio manager. Investors are not being offered any guaranteed returns
through these schemes.
• The scheme may use derivatives instrumental like index futures, stock futures
and options contracts, warrants, convertible securities, swap agreements or any
other derivative instruments for the purpose of hedging and portfolio
balancing, as permitted under the regulations and guidelines. The use of a
derivative requires an understanding not only of the underlying instrument but
also of the derivative itself. Derivatives require the maintenance of adequate
controls to monitor the transactions entered into, the ability to assess the risk
that a derivative adds to the portfolio and the ability to forecast price or interest
rate movement correctly. Scheme using derivative / futures and options
products (if any) are affected by risks different form those associated with
stock and bonds. Such products are highly leveraged instruments and their use
requires a high degree of skill, diligence and expertise. Small price movements
in the underlying security may have a large impact on the value of derivatives /
futures and options. Some of risks relate to mis-pricing or the improper
valuation of derivatives/futures and options and the inability to correlate the
positions with underlying assets, rates and indices. Also the derivative/ future
and options market is nascent in India.
59
• The names of the schemes do not in any manner indicate their prospects or
returns. The performance in the equity schemes may be adversely affected by
the performance of individual companies, changes in the market place and
industry specific and macro economic factors.
• The Portfolio Manager, first time, has launched schemes in September, 2004
under Portfolio management services. Disclosure Document is being submitted
to SEBI under its SEBI (Portfolio Managers) Regulations, 1993.
• The debt investments and other fixed income securities may be subject to
interest rate risk, liquidity risk, credit risk and reinvestment risk. Liquidity in
these investments may be affected by trading volumes, settlement periods and
transfer procedures.
• Technology stocks and some of the investments in niche sectors run the risk of
volatility, high valuation, obsolescence and low liquidity.
• In the case of stock lending, risks relate to the defaults from counter parties
with regard to securities lent and the corporate benefits act thereon, inadequacy
of the collateral and settlement risks. The portfolio manager is not responsible
or liable for any loss resulting from operations of the schemes.
• The Performance of the schemes may affected by changes in Government

polices, general levels of interest rates and risks associated with trading
volumes, liquidity and settlement systems in equity and debt markets.
• The scheme may invest in non-publicly offered debt securities and unlisted
equities. This may expose the scheme to liquidity risks.
60
• Engaging in securities lending is subject to risks related to fluctuations in
collateral value/settlement/liquidity/counter party.
DIFFERENT COMPETETORS:-
61
The major players in proving Portfolio management Services are as follows:-
 Sharekhan.com
 Motilal Oswal
 India Infoline
 India bulls
 Kotak securities
 HDFC
 ICICI Direct
COMPANY BACKGROUNG
Sharekhan is the retail broking arm of SSKI Securities Pvt Ltd. SSKI owns 56% in
sharekhan; balance ownership is HSBC, First Caryle, and Intel pacific into broking
62
since 80 years. Focused on providing equity solutions to every segment. Largest
ground network of 210 Branded Share shops in 90 cities.
Sharekhan Portfolio Management Services (PMS no- INP000000662)
 PRO TECH
 PRO PRIME
 PRO ARBITRAGE
PRO TECH: Investing based on price

movements.
Product Offerings:-
(1) Nifty Thrifty: - Nifty futures are bought and sold on the basis of an
automated trading system that generates calls to go long/short. The exposure never
exceeds value of portfolio i.e. there is not leveraging; but being short in Nifty allows
you to earn even in falling markets and there by generates linear returns.
63
(2) Beta portfolio: - Stocks in long term technical up trends are identified at
various inflection points in their trading cycles. 80% of the portfolio is traded in
delivery of such stocks. 20% is used in creating an options book i.e. buying calls/puts
of the index/stocks to increase the portfolio beta and hedge against pitfalls. The use of
timing for delivery and options for a higher beta enables potentially a superior rate of
return by taking a risk on just 20% of capital.
PRODUCT APPROACH
 Superior performance can be achieved through sheer market timing, by picking
stocks/Nifty before the inflection points in their trading cycles.
 Linear returns are possible from having sell market positions in downtrends and
by using the options market to change the portfolio beta.
 Money management rules will be in place.
PRODUCT CHARACTERISTICS
 Using swing/momentum based index trading systems with stop/reverse trend
following.
 One get the best of both worlds by:
 Having positions in cash and options.
 Delivery positions enable profit maximization, while options positions
offer high beta short term profit in the same portfolio.
 Low impact cost.
PRODUCT DETAILS
• Minimum Investment: Rs 5 lakh
• Lock in: 3 months
• AMC fees: 0%
64
• Reporting: Fortnightly reporting of Portfolio Net worth, monthly
reporting of portfolio holdings/transaction.
• Charges: 0.05% brokerage for derivatives, 20% profit sharing on
booked profits quarterly basis, 5% discount for 1 crore investments
or 1 year lock in period.
PRO PRIME:-Investing based on company fundamentals.
TWO PRODUCT OFFERINGS

(1) The Aggressive Scheme
Ideal for investors looking at higher returns with high risk appetite.
This portfolio consists of high growth stocks fulfilling any of the
following conditions:
• Expected growth in profitability
• Turnaround and corporate restructuring enabling value unlocking.
• Relatively low valuation.
• Mid to small cap companies.
(2) The Balanced Scheme

Ideal for investors looking at steady returns with low risk appetite. The portfolio
consists of a blend of quality blue chip and growth stocks ensuring a balanced
portfolio with relatively medium risk profile.
65
PRODUCT APPROACH
Investments are based on 3 tenets:
• Consistent, steady and sustainable returns.
• Margin of safety.
• Low volatility.
• Bottom up stock selection
• In depth, independent fundamental research.
• High quality companies with sustainable competitive advantage.
• Disciplined valuation approach applying multiple valuation measures.
• Medium to long term vision, resulting in low portfolio turnover.
PRODUCT DETAILS.
• Minimum Investment: Rs 5 lakh
• Lock in: 3 months.
• Reporting: online access to portfolio holdings, monthly reporting of portfolio
holdings/transactions.
• Charges: 2.5% per annum AMC fees charged every quarter, 0.5% brokerage,
20% profit sharing after 15% hurdle is crossed- chargeable at the end of fiscal
year.
PRO ARBITRAGE:-Investing using arbitrage opportunities.

PRODUCT OFFERINGS
Cash-future Arbitrage: It spots risk free opportunities that yield
greater returns than conventional risk free products. On spotting
66
the opportunity, the stock is bought and future is sold to lock in the spread. Position is
liquidated if the spread thins before time or on
Expiry, whichever come earlier. In this manner, the scheme moves from one
opportunity to another.
PRODUCT APPROACH
There is an inherent opportunity in the spread that lies between cash and futures.
When the spread is high stocks are bought; at the same time futures are sold to lock in
the difference which is then bound to be zero at expiry.
Risk Free: On the whole, it is risk –free and can be compared to RBI bonds and GILT
funds.
High Returns: As compared to other zero risk products, it offers roughly an 8% post
tax return.
PRODUCT DETAILS
• Minimum Investment: Rs 5 lakh.
• Lock in: 3 months
• Reporting: Fortnightly for portfolio net worth, monthly for portfolio
holdings/transactions.
• Charges: 0.035% brokerage for cash, 0.075% for delivery.
67
Motilal Oswal Financial Services is a well diversified financial services group having
businesses in securities, commodities, investment banking and venture capital. With
1160 Business locations and more than 2, 00000 investor in over 360 cities, Motilal
Oswal is well suited to handle all wealth creation & wealth management needs.
Motilal Oswal Financial services Ltd, consists of four companies: Motilal Oswal
investment advisors Pvt ltd, Motilal Oswal commodities broker (p) ltd, Motilal Oswal
venture capital advisors private limited, Motilal Oswal securities Ltd.
PMS SCHEMES OFFERED BY MOTILAL OSWAL

(1) VALUE PMS
Value PMS is a scheme meant for investors with a long term investment horizon in
the Indian Equity markets. The investment philosophy is not dependent on the market
trends but banks on the power of the intellect.
SCHEME OBJECTIVE
The scheme aims to deliver superior wealth creation by way of long term
compounding effect, with investments in good businesses run by great business
managers.
PORTFOLIO CHARACTERISTICS.
• Value based stock selection.
• Investment approach: “Buy and Hold”
• Investments with long term perspective.
68
• Aim to maximize post tax return due to low churn.
• Focused portfolio construction
• Capital preservation consciousness.
• Identify and purchase a piece of great business at a fraction of its true value.
• Investments with a long-term investment view. The fund manager strongly
believes that “money is made by sitting”.
• Investments are identified by a Bottom up approach. The aim is to identify
potential long-term wealth creators by focusing on individual companies and
their management bandwidth.
PORTFOLIO TENURE: - Long term (3-5 years).
INVESTOR PROFILE: -Investors who like to invest with a long-term wealth

creation view.
RISK RETURN
MATRIX
69
(2) BULL’S EYE PMS
Bull’s eye PMS scheme under is designed to invest in stocks with short-medium
term perspective, for a minimum 15-20% move. The investment philosophy is to find
“momentum in value”.
SCHEME OBJECTIVE
The scheme aims to deliver superior returns in low to medium term by investing in
value stocks with momentum approach, coupled with active profit booking.
PORTFOLIO CHARACTERISTICS
• Investment Approach: “Momentum in Value”.
• Investments with short-medium term perspective.
• Regular profit booking.
70
• Ability to sit on cash.
• Identifying the right sector and right company with a scalable business managed
by competent managers.
• To look out for companies with transparency, execution capability and
management bandwidth.
• Investments in market leaders, who have the vision to make it big.
PORTFOLIO TENURE: - Short to Medium term (1-3 Quarters)
INVESTOR PROFILE: - Investors who like to invest in value stocks and capitalize
on the periodic upside by an active process of profit booking.
RISK RETURN MATRIX
INDIA INFOLINE LTD AND ITS SUBSIDIARY COMPANIES:-

71
India Infoline Ltd is listed on
both the leading stock
exchanges in India, viz. the
stock exchange, Mumbai (BSE) and the National Stock Exchange (NSE). The India
Infoline group, comprising the holding company, India Infoline Ltd and its
subsidiaries, straddles the entire financial services space with offerings ranging from
Equity Research, Equities and derivatives trading, commodities trading, portfolio
management services, Mutual funds, Life insurance, fixed deposits, GOI bonds and
other small savings instruments to loan products and investment banking.
SCHEMES OFFERED BY INDIA INFOLINE:-
(1) GROWTH PORTFOLIO
72
This is for those who would rather run a marathon than a sprint. They
are not concerned with day-to-day price movements. The portfolio
comprises the choicest of fundamentally sound companies. The focus
in on medium to large capitalization blue chip companies, considered to be
undervalued from the point of view of their long-term growth prospect and well
placed to deliver extra-ordinary capital appreciation over the long term.
(2) MOMENTUM PORTFOLIO

This is for those who want to live life in the fast lane. The main
objective of this portfolio is to generate capital appreciation through
short to medium term investments in equities and equity related
instruments. The investment choice is primarily influenced by technical factors like
price & volume indicators, RSI, MACD, & other studies. Secondary factors will be
reasonable levels of market capitalization, good liquidity, competitive position in the
industry, sectors with good growth prospects, etc.
73
(3) NRI
PORTFOLIO
The main objective of the scheme is to generate capital
appreciation through investments in equities with a long-term
perspective. The scheme will invest in all equity & equity related
instruments with emphasis on fundamentally sound, well-researched blue chip
companies perceived to be undervalued from the point of view of their long term
growth prospects. The focus will be on medium to large capitalization companies
which have a proven track record or earning capability, quality management,
leadership status in sectors or potential to achieve such status, etc & that have the
potential to deliver growth over the long term. The scheme is aimed at medium risk
taking investors willing to invest in companies over a long term period.
(4) CUSTOMIZED PORTFOLIO

The objective of this scheme is to generate optimum returns based
on the assessment and understanding of the risk profile of the
client. The scheme will be customized to suit the needs of the
client. Based on the assessment of the client profile, the optimum portfolio mix will be
formalized. Asset classes include equity or equity related instruments including
mutual funds, debt & debt related instruments including debt mutual funds,
commodities markets, etc. The clients can specify the asset mix they prefer.
74
CHAPTER -4
75
DESCRIPTIVE WORK ON SUB TOPIC
OF
STUDY
SECURITIES MARKET IN INDIA - OVERVIEW
There were a lot of reforms & other market development in Securities Market in
India-Overview during 2000-2001 & April-June 2001. The originating of the Indian
securities market may be traced back to 1875, when 22 enterprising brokers under a
Banyan tree established the Bombay Stock Exchange(BSE).Over the last 125 years,
76
the Indian securities market has evolved continuously to become one of the most
dynamic, modern and efficient securities markets in Asia. Today, Indian markets
conform to international standards both in terms of structure and in terms of operating
efficiency.
Securities markets provide a channel for allocation of savings to those who have a
productive need for them. As a result, the savers and investors are not constrained by
their individual abilities, but by the economy’s abilities to invest and save
respectively, which inevitably enhances savings and investment in the economy.
MARKET SEGMENTS
The securities market has two interdependent and inseparable segments: the primary
and the secondary market. The primary market provides the channel for creation of
new securities through issuance of financial instruments by public companies as well
as Governments and Government agencies and bodies whereas the secondary market
helps the holders of these financial instruments to sale for exiting from the investment.
The price signals, which subsume all information about the issuer and his business
including associated risk, generated in the secondary market, help the primary market
in allocation of funds. The primary market issuance is done either through issues or
private placement. A public issue does not limit any entity in investing while in
private placement, the issuance is done to select people. In terms of the Companies
Act, 1956, an issue becomes public if it results in allotment to more than 50 persons.
This means an issue resulting in allotment to less than 50 persons is private placement.
There are two major types of issuers who issue securities. The corporate entities issue
mainly debt and equity instruments (share, debentures, etc.), while the governments
(central and state governments) issue debt securities (dated securities, treasury bills).
77
The secondary market enables participants who hold securities to adjust their holdings
in response to changes in their assessment of risk and return. They also sell securities
for cash to meet their liquidity needs. The exchanges do not provide facility for spot
trades in a strict sense. Closest to spot market is the cash market in exchanges where
settlement takes place after some time. Trades taking place over a trading cycle (one
day under rolling settlement) are settled together after a certain time. All the 23 stock
exchanges in the country provide facilities for trading of corporate securities. Trades
executed on NSE only are cleared and settled by a clearing corporation which
provides novation and settlement guarantee. Nearly 100% of the trades in capital
market segment are settled through demat delivery.
NSE also provides a formal trading platform for trading of a wide range of debt
securities including government securities in both retail and wholesale mode. NSE
also provides trading in derivatives of equities, interest rate as well indices. In
derivatives market (F&O market segment of NSE), standardized contracts are traded
for future settlement. These futures can be on a basket of securities like an index or an
individual security. In case of options, securities are traded for conditional future
delivery. There are two types of options – a put option permits the owner to sell a
security to the writer of options at a predetermined price while a call option permits
the owner to purchase a security from the writer of the option at a predetermined
price. These options can be on individual stocks or basket of stocks like index. Two
exchanges, namely NSE and the Stock Exchange, Mumbai (BSE) provide trading of
derivatives of securities. Today the market participants have the flexibility of
choosing from a basket of products like:
 Equities
 Bonds issued by both Government and Companies.
 Futures on benchmark indices as well as stocks
78
 Options on benchmark indices as well as stocks
 Futures on interest rate products like Notional 91-day T-Bills, 10-year
notional zero-coupon bond and 6% notional 10-year bond.
The past decade in many ways has been remarkable for securities market in
India. It has grown exponentially as measured in terms of amount raised from the
market, number of stock exchanges and other intermediaries, the number of listed
stocks, market capitalization, trading volumes and turnover on stock exchanges and
investor population. Along with this growth, the profiles of the investors, issuers and
intermediaries have changed significantly. The market has witnessed several
institutional changes resulting in drastic reduction in transaction costs and significant
improvements in efficiency, transparency, liquidity and safety. In a short span of time,
Indian derivatives market has got a place in list of top global exchanges. In single
stock futures, the Futures Industry Association (FIA) placed NSE in second position
in the year 2000.
Reforms in the securities market, particularly the establishment and empowerment of

SEBI, market determined allocation of resources, screen based nation-wide trading,
dematerialisation and electronic transfer of securities, rolling settlement and ban on
deferral products, sophisticated risk management and derivatives trading, have greatly
improved the regulatory framework and efficiency of trading and settlement. Indian
market is now comparable to many developed markets in terms of a number of
qualitative parameters.
DEPENDENCE ON SECURITIES MARKET
79
Three main sets of entities depend on securities market. While the corporate and
governments raise resources from the securities market to meet their obligations, the
households invest their savings in the securities.
CORPORATE SECTOR: The 1990s witnessed emergence of the securities market as

a major source of finance for trade and industry. A growing number of companies are
accessing the securities market rather depending on loans from FIs / banks. The
corporate sector is increasingly depending on external sources for meeting its funding
requirements. There appears to be growing preference for direct financing (equity and
debt) to indirect financing (bank loan) within the external sources.
Accordingly to CMIE data, the share capital market based instruments in resources
raised externally increased to 53% in 1993-94, but declined thereafter to 33% by
1999-00 and further to 21% in 2001-02. There is not much difference in the
shareholding pattern of companies in different sectors. Strangely, private corporate
bodies hold 63% of shares in companies in media and entertainment sector though the
requirement of public offer was relaxed to 10% for them. The promoter holding is not
strikingly high in respect of companies in the IT and telecom sectors where similar
relaxation was granted.
GOVERNMENTS: Along with increase in fiscal deficits of the governments, the

dependence on market borrowings to finance fiscal deficits has increased over the
years. During the year 1990-91, the state governments and the central governments
financed nearly 14% and 18% respectively of their fiscal deficit by market borrowing.
In percentage terms, dependence of the state governments on market borrowing did
not increase much during the decade 1991-2001. In case of central governments, it
increased to 77.6% by 2002-03.
80
HOUSEHOLDS: According to RBI data, household sector accounted for 82.4% of
gross domestic savings during 2001-02. They invested 38% of financial savings in
deposits, 33% in insurance/ provident funds, 11% on small savings, and 8% in
securities, including government securities and units of mutual funds during 2001-02.
Thus the fixed income bearing instruments are the most preferred assets of the
household sector. Their share in total financial savings of the household sector
witnessed an increasing trend in the recent past and is estimated at 82.4% in 2001-02.
In contrast, the share of financial savings of the household sector in securities (share,
debentures, public sector bonds and units of UTI and other mutual funds and
government securities) is estimated to have gone down from 22.9% in 1991-92 to
4.3% in 2000-01, which increased to 8% in 2001-02.
Through there was a major shift in the saving pattern of the household sector from
physical assets to financial assets and within financial assets, from bank deposits to
securities, the trend got reversed in the recent past due to high real interest rates,
prolonged subdued conditions in the secondary market, lack of confidence by the
issuers in the success of issue process as well as of investors in the credibility of the
issuers and the systems and poor performance of mutual funds. The portfolio of
household sector remains heavily weighted in favour of physical assets and fixed
income bearing instruments.
INVESTOR POPULATION
The Society for Capital Market Research and Development carries out periodical
surveys of household investors to estimate the number of investors. Their first survey
81
carried out in 1990 placed the total number of shareowners at 90-100 lakh. Their
second survey estimated the number of shareowners at around 140-150 lakh as of
mid-1993. Their latest survey estimates the number of shareowners at around 2crore at
1997 end, after which it remained stagnant up to the end of 1990s.
The bulk of increase in number of investors took place during 1991-94 and tapered off
thereafter. 49% of the shareowners at end of 2000 had, for the first time, entered the
market before the end of 1990, 44% entered during 1991-94, 6.3% during 1995-96
and 0.8% since 1997. The survey attributes such tapering off to persistent depression
in the share market and investors’ bad experience with many unscrupulous company
promoters and managements.
Distribution of Investors: The Society for Capital Market Research &

Development estimates that 15% of urban households and only 0.5-1.0% of semi-
urban and rural household own shares. It is estimated that 4% of all households own
shares. An indirect, but very authentic source of information about distribution of
investors is the database of beneficial accounts with the depositories. By February
2003, there were 3 million beneficial accounts with the National Securities Depository
Limited (NSDL).
82
CHAPTER -5
DATA ANALYSIS
&
INTERPRETATION
MAIN STUDY
83
The Study was undertaken to understand the Investor perception about
portfolio, in the context of satisfaction derived by existing customers and to find out
what are the crucial factors that customers look for from the Service providers.
Reforms in the Security Market, particularly the establishment & empowerment of
SEBI, market determinant allocation of resources, screen based nation-wide trading,
dematerialization, electronic transfer of securities, rolling settlement, sophisticated
risk management & derivative trading have improved the regulatory framework &
efficiency of trading and settlement. Indian stock market is now comparable with any
developed market in terms of number of qualitative parameters. There are around 30
lakhs beneficiary accounts with the National Stock depositary in India.
In this context, the study was conducted to know about the perception of
investors in portfolio regarding current scenario of Stock Market. The reduction in the
interest rates in small savings, Fixed Deposits, sluggish trend in the real estate market
etc. may raise the stock market as an alternative for investments.
RESEARCH METHODOLOGY
84
Schedule & questionnaire was used for data collection. Simple Random
Sampling selected the sample. Respondents belong to various demographic
parameters as Occupation, Sex etc.
Schedule & Questionnaire Preparation:

Schedule was prepared keeping in mind the expectations & purpose of
investments in the Stock Market. Investors were interviewed at various stock brokers’
premises in and around New Delhi.
The Schedule consisted of the following aspects:

 Investment Presently Held:
(Stocks/Bonds/Options/Mutual funds/Bullions/Bank Deposits)
 Trading Preference: Speculation/Investment/Both
 Average Investment Period
 Appreciation & Loss Expected
 Risk Willingness
 Investment Decisions
 Rating of Service Satisfaction received from Current Broker
Sources of Data Collection
Primary Data was collected through survey among the investors. The procedure
adopted to select sample was simple random sampling.
Research Design
85
The research design is analytical in nature. The investor’s profile was based on the
results of the schedule & Questionnaire that the Investor completes. The Sample
consists of 100 investors from various broker’s premises.
The following are the premises were interview was conducted;

 RELIGARE Securities
 India Bulls
 India Info line
 Motilal Securities
 Nearly residing investors.
Decision regarding investment in share market.

86
60
50
40
30 Series1
20
10
0
yes no earlier,now
stopped
Figure 1. Decision regarding Investment
55% people are currently investing in share market with the expectation that market
will show a record breaking performance. 35% people are not investing either because
they don’t have much knowledge about share market or they prefer mutual funds over
trading.10% people have stopped now after suffering heavy losses.
Trading Preference
Figure 2. Trading Preference
Trading preference can be classified into Investment and Speculation. Investment

refers to a longer time horizon. Buying and selling shares in selected companies to
87
make a profit and is linked to a long time. Speculation on the other hand refers to
making quick profits by anticipating the changes in the prices of shares. Speculative
transactions are carried out in the stock exchange day in & day out. The preference of
trading was found to be 48% in Investment & 10% in speculation.
APPROXIMATE TRANSACTION PER DAY:
Figure 3. Approximate Transaction per Day
The amount of investment in the stock market varies from investor to investor.
There are a various reasons, viz. the returns expected from the past investments, the
Dividends obtained, the amount availability, etc. A majority of the transaction done
was found to be Rs.50, 000 per day (57%) followed by 50,000 to 1 lakh per day
(25%).
6
RETURN ON INVESTMENT
8%
88
RESPONDENTS PERCENTSGE
Below 5% 20 20%
5- 10 % 57 54%
10- 30 % 18 18%
More than 30 % 8 8%
TOTAL 100
Figure 4. Return on Invest
Interpretation:
20% of the respondents get below 5%
89
54% of the respondents get 5- 10 %
18% of the respondents get 10 -30 %
8% of the respondents get more than 30%
Inferences:
From the above survey most of the respondents get 5- 10 % returns on their
investments.
Expectations of Annual Income & Expense over next 3 to 5 Years:

A view of the present income & expense level to their projections determines the
amount of investment. The various aspects to be considered are,
 Percentage of his income to be invested in share market
 Quality & Return Investments
 Profitability
 Growth of Capital & Earnings
ANNUAL INCOME:
90
Figure 5. Income Expectations of Investors
Annual Income: Respondents % Average Change %
Increase 87.01 54.13

Decrease 1.94 28.33
Remain Same 11.03
INCOME DISTRIBUTION
Figure 6- Income Distribution of Investors
45% Investors are willing to reinvest more of their income, shows having
faith on their portfolio as well as on market, 10% of investors are
91
reinvesting all their income,want same return on their income from
investment, 35% thinking it is better to keep more amount of their
income,shows they are balancing and risk aware investor while 10% of
investor want to keep all their income.
ANNUAL EXPENSE:
Figure 7. Expense Expectations of Investors
100
86.
90
Annual Expense: Respondents % Average Change %
Increase 86.2 34.19
92
Decrease 4.13 7
Remain Same 9.65
TRADING PREFERENCE OF INVESTORS
TRADING PREFERENCE
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
SPECULATOR INVESTMENT BOTH
Figure 8. Trading preference of investors
The trading of 25% of players are speculative in nature, 34% are trading for
investment purpose, but most of the investors are including in both form of
trading i.e. 40%.
93
Inferences:
It means most of the players want short as well as long term return.
They are generally balance their return & risk.
INVESTMENT AVENUES:
Figure 9. Investment Avenues
Mode of Investment Percentage
Govt. Securities 3%
Bullion
Mutual Funds
1%
4% 19%
Real Estate 65%
Option 5%
Bonds
Stocks 3% 3%
19%
94
Diversification reduces risk by combining asset classes with low correlation.
Diversification is a portfolio strategy designed to reduce exposure to risk by
combining a variety of investments, such as stocks, bonds, and real estate, which are
unlikely to all move in the same direction.
The goal of diversification is to reduce the risk by investing in different asset

classes that have a low degree of correlation with each other. With proper
diversification volatility is reduced by the fact that not all asset classes, industries or
individual companies move up and down in value at the same time or at same rate.
Diversification reduces both the upside and downside potential, but allows for more
consistent performance under a wide range of economic conditions.
AVERAGE INVESTMENT PERIOD:
Figure 10. Average Investment Period
The investment period refers to the period within which the security/share is
bought and sold. It relates to the investor behavior towards his expectations & reaction
to the change in prices of the share. It was found that 34% of the investor preferred a
category of 3 to 6 months.
95
Investor’s Importance or Order of preference from Service Providers:
Reliability
10% 15% 25% promptness in delivery

Speed of transaction
20% 15%
15% flexibility
courteous behaviour
approach
Figure 11. Order of Preference from Service Provider
STOP LOSS:
A certain characteristic of an Investor is to average out the cost of investment

in Stock if the market goes down & price of the stock reduces, while certain stop their
loss to further increase by selling it at a lesser price than what it was bought, thus
incurring a loss. The Below chart gives the investor’s preference towards stop loss.
APPRECIATION OF CAPITAL:
Investors look forward towards increasing their return of investments either

through the Dividends paid by the company or through the increase in the share value
of the shares held. The below chart gives the percentage of returns and investor
expects over his/her investments.
Sometimes
96
27%
S Figure 12. Expected Return Appreciation
Loss:
Investment in Share market involves risk of loss and the below chart gives the
percentage of loss on investments made. The below diagrams represents the loss
anticipated by the investors and categorization of risk they are willing to take.
Loss
20%
18% Figure 13.
Expected
Loss
34%
Less Than 5%
Risk
5% - 10%
More Than 10%
46% 17%
High
Low
57% 26% Moderate
27%
97
Figure no 14: willingness to take risk
INVESTMENT DECISIONS:
Figure 15. Investments Decisions
The source of information related to the Economy, Industry & the company are a
plenty. Investors look into various aspects as P/E multiple, Market Capitalization,
Intrinsic value etc., of the companies before investing. The investment decisions made
accounted to 34% in Self Evaluation, 22% in Current News, 18% in Financial

Magazines and so on.
18%
AVERAGE COST:
It refers to averaging the price of the brought shares of a company if the market value
reduces. It was found that 43% of the investors averaged their cost.
98
60%
Figure 16.1. Average Cost
50%
The amount of averaging varies from investor to investor. About 36% of the
investors averaged by 50% of the purchased value.
Average Cost
43%
Figure 16.2.
Average Cost
27%40% 4%
33% By Equal Quantity
By 50%
in Quantity
By 25%
Depends
36%
30%
SUBSCRIPTION TO FINANCIAL MAGAZINES:
20%
70%
10% 99
Figure 17. Subscription to Magazines
Magazines provide the actual status & various information of the company.
Around 39% of the investors subscribed to financial magazines.
VALUE ADDED SERVICES:
Value Added Services Figure

18. Value
80% 72%
% of Respondents
Added
60% Services
40% 28% Series1
20% The increase in the
investor population
0%
has simultaneously
Yes No
increased the
number of player
providing services. There is a tough competition among the players in the market. It
was found that 72% of the players provided Value added services.
RATING OF SATISFACTION:
Satisfaction
% of Respondents
50% 42%
40% 35%
30%
20% 13% Series1
8%
10% 2%
0%
nt
d
d
or
oo
oo
or
lle
Po
ce
ac
ry
Ex
f
is
Ve
t
Sa
100
Figure 19. Satisfaction Rating
The Satisfaction investor’s obtained from the service offered were rated on a 5 point
scale representing the following:
1 Poor 2%
2 Satisfactory 42%
3 Good 35%
4 Very Good 13%
5 Excellent 8%
Most of the investors are satisfied with the service offered by the Broking firms.
EXPECTATION OF INVESTORS:
Expectations
5%
32% Somewhat
Definitely
63% not at all
Figure 20. Service Expectations
Over 32% of the Investors were found to be provided by the services they expected.
101
Awareness of Portfolio Management Service (PMS)
Service Providers %
1 Bonanza 1.35
2 RELIGARE Securities 1.33
3 Anand Rathi 1.33
4 Capstocks 1.33
5 Franklin Templeton 2.70
6 India Infoline 4.05
7 UTI Securities 4.05
8 IL & FS 5.41
9 Motilal Securities 14.86
10 Kotak Securities 16.22
102
11 Geojit Financial Services 22.97
12 Equity Intelligence 24.32
Figure 21. Awareness of Portfolio Management Service
CHAPTER -5
CONCLUSION
&
SUGGESTION
103
CONCLUSION & SUGGESTION
 48% of the investors prefer Investment with respect to 10%

Speculation, Approximate transaction per day below Rs 50,000 is 57% with a
34% of average investment period in 3 to 6 months.
 An appropriate strategy can be developed to suggest investment

ideas considering the above-mentioned aspects.
 Order of importance of the investors being Reliability,

Promptness in Delivery and Speed of transaction indicates the preference,
which would assist in meeting the expectations of the customers.
 Investment Decisions made is 34% in Self Evaluation, which

indicates that even if the investor is given an investment tip, the investor
evaluates before Investment.
104
 72% of the investors are provided with Value added services,
which aids in building customer relationship.
 Portfolio Management Service- Only 1.33% of the investor aware

of PMS offered by RELIGARE. The awareness among investors to be
increased by advertisements, investment campaigns etc.
 Investors prefer paying less brokerage for their trading and

according to the above research 35% people are paying less brokerage which
includes investors from sharekhan, India Infoline.
 65% of the investors are currently dealing with sharekhan and

India Infoline but 25% are planning to shift over to Religare Securities.
CHAPTER -6
BIBLIOGRAPHY
105
BIBLIOGRAPHY
1. C.R. Kothari, Research Methodology Methods & Techniques, Second Edition,
New Age Publications.
2. V.A. Avadhani, Capital Market Management, Himalaya Publishing House
106
3. Naresh K. Malhotra, Marketing Research an Applied Orientation, Fourth
Edition, Pearson Education.
4. www.nseindia.com
5. www.religare.in
6. www.sharekhan.com
7. www.indiainfoline.com
8. www.kotaksecurities.com
9. www.motilaloswal.com
10.Basic module of NCFM provided by NSE.
CHAPTER -7
APPENDICES
107
QUESTIONAIRE
Name:-_____________________ Occupation:-________________
Phone:-____________________
(1)Do you invest in Stock Market?

Yes No Earlier, now stopped
(2)How much Return you Get after Investing?

Below 5% 5-10% 10-30% More than 30%
(3)What do you want to do with the income generated from your investments?
Reinvest all income
108
Receive a small portion as income and reinvest the balance
Receive more income and reinvest a small portion
Receive all the income
(4) Who is your current broker? ________________________
(5) What is the current brokerage that you are paying?

1ps-2ps 2ps-3ps above 3ps
(6) What is your current trading preference?

Speculation Investment Both
(7)What do your Approx Transaction Amount/Day?

Below Rs 50,000 Rs 50,000-Rs1lakh Rs 1 lakh-Rs 2.5
lakhs
Rs 2.5 lakhs-Rs 5 lakhs More than Rs 5 lakhs
(8) Over the next 3-5 years, do you expect your annual income & expenses to?
INCOME EXPENSES
A. Increase by Rs.__ or__% A. Increase by Rs.__ or__%
B. Decrease by Rs.__ or __% B. Decrease by Rs.__ or__%
C. Remain the same C. Remain the same
(9) Investment Presently Held:

Please list the value of the assets in your total investments portfolio :( Rs.)
Stocks: ________ Mutual Funds: _________

Bonds: ________ Bullion: _________
Options: ________ Govt.Securities:_________
Real Estate: ______ Bank Deposits: _________
(10) What is your Average investment period?

A. Less than 3 months. B. 3 to 6 months.
C. 6 months to 1 year. D. More than 1 year.
109
(11)Please give your Order of Importance
___ A. Realiability ___ B. Promptness in Delivery.
___ C. Speed of transaction ___ D. Approach
___ E. Flexibility ___ F. Courteous Behavior
(12) Have you put any Stop Loss on your Investments?

Yes No Sometimes
(13) How much appreciation do you expect from your Investments?

Up to 15% 15%-25% 25%-35% more than
35%
(14) How much loss are you willing to take?

Less Than 5% 5-10% more than 10%
(15) How much risk are you willing to take?

High Low Moderate
(16) How do you make investment decisions?

Advice from Broker Current news
Reviews in Financial Magazines Advice from Friends
Self Evaluation Others______________
(17) Do you try to average your cost when market goes low? Yes/No
If yes, how much would you average?

By equal Quantity Almost 50% Almost 25%
(18) Do you prefer any Investment Advices? Yes/No
(19) Do you subscribe any equity market Magazines? Yes/No

If Yes, which one ___________________________
(21) Does your current broker provide value added services? Yes/No
(22) How much Satisfied you are with your current share broker?
Highly Satisfied Satisfied Neutral
Unsatisfied Highly Unsatisfied
(23) How do you rate the service you received today?

1=poor 2=satisfactory 3=good
4=very good 5=excellent
110
(24) Are the services offered by current service provider up to your expectation?
1=Not at all 2=Somewhat 3=definitely
(25) How many Trading & Demat a/c do you have?
Trading __________ Demat __________
(26) Would you prefer your investments to be managed by Professionals?

Yes/No__________
(27) Which are the agencies that provide Portfolio Management Service?
_____________________________________________________________________
_____________________________________________________________________
____________________________________
(28) How much would you invest in Portfolio management? Rs._____________
(29) How much Return do you expect from Portfolio Management Service?
20-30% 30-40% 40-50%
111

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CHAPTER -1

competition is so high that retaining existing customers or getting new customers by

importance of knowing how satisfied our present customers are.

overall performance can be improved and key indicators of customer dissatisfaction

shall be documented and supported by objective information.

to analyze the equity instruments and the Market Trend.

of various investors as per the Market investor and Market Trend.

2. To find out awareness of competitor’s products among Investors.

3. Investors Preference & Investment patterns.

4. To present and analyze various strategies in different market situations for

players of different profiles.

5. This work is intended to be useful for researchers, traders, portfolio managers,

financial institutions, mutual funds, corporate and student finance.

b- Methods of Data Collection

The Sample consists of 100 investors from various broker’s premises.

Methods Of Data Collection

to select sample was simple random sampling.

stock exchanges, business magazines & journals.

The research design is analytical in nature. A questionnaire was prepared and

distributed to Investors. The investor’s profile is based on the results of a

questionnaire that the Investors complete.

 Limitations in regards with the Sample Selections:

subjected to customer bias.

 A more extended geographical sample may show greater difference in

 It would be interesting, in further research, to correlate perceptions of services

in terms of customer satisfaction, or factor analysis on the various services

expected by customers. The Sample size may be extended to include other

 Limited Time for conducting the study.

 Respondents were not interested to disclose details.

RELIGARE Securities Ltd. (RSL) is a wholly owned subsidiary of RELIGARE

RELIGARE is a pioneer in the concept of partnership to reach multiple locations in

1. Member of National Stock Exchange of India and Bombay Stock

RELIGARE COMDEX LIMITED

Member of National Commodity Derivative Exchange and Multi Commodity

RELIGARE FINVEST LIMITED

A RBI approved Non-banking finance company.

RELIGARE is a truly professional corporate backed financial service provider

RELIGARE INSURANCE ADVISORY LTD

PRODUCT & SERVICES

BUSINESS & OPERATIONS

RESEARCH & ANALYSIS

This group is focused on tracking potential business opportunities and converting

The company is equipped with most advanced systems to facilitate smooth

Mr. Sunil Godhwani is Chief Executive Officer and Managing Director of

Retail Broking: Mr. Ashu Madan

Why should you choose RSL as your financial partner? A summary of

1. Participant on the country’s premier exchange: RELIGARE is a member of the

2. Clearing membership on Capital & Derivatives segments: It has clearing

3. Depository Participants with NSDL & CDSL: We are depository participants

with the country’s premier depository service - National Securities Depository

8. Research Capabilities: We have a dedicated team of analysts in our Bombay

9. Technical Analysis: A daily technical newsletter is published by our in-house

technical analyst, who is a recognized leading practitioner of the science. He has a

PORTFOLIO MANAGEMENT SERVICES

Religare Securities Ltd, (PMS Registration No. INP000000738) a company

Portfolio management services is “ The art and science

The main idea behind Portfolio Management Services is to manage our

 A portfolio comprising of select ideas.

 Ability to take focused bets both in stocks and sectors.

 Efficient allocation among assets, viz. Equity and Cash.

(2) PMS portfolios combine the benefits of

(3) PMS offers a higher level of information and