DISSERTATION REPORTON

A STUDY OF INVESTMENT AVENUES AT KARVY STOCK BROKING LIMITED

Submitted to:
Mr.SAPTARISHI MUKHERJEE Faculty Guide

Submitted by:
AMRUTHA SUBRAMANY Enrollment No-10AM51220
Submitted in partial fulfillment of the requirement for MBA Degree MANONMANIAM SUNDARANAR UNIVERSITY TIRUNELVELI-627012

INTERNATIONAL BUSINESS SCHOOL BANGALORE 2010-2012

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STUDENTS DECLARATION

I, AMRUTHA SUBRAMANY Roll No 10AM51220 Class-MBA 4th Sem of IBS Bangalore hereby declare that project titled A STUDY OF INVESTMENT AVENUES AT KARVY STOCK BROKING LIMITED is the original work done by me and and the same has not been submitted to any other institute for the award of any other degree.

AMRUTHA SUBRAMANY

ACKNOWLEDGEMENT

I would like to sincerely acknowledge the constant support and guidance of my project Amrutha Subramany has been instrumental in successful completion of the project. He provided me with all the resources and autonomy which made me put in the best of Efforts. I would also like to express my gratitude towards the International Business School for giving me the opportunity to undergo project at KARVY STOCK
BROKING LIMITED.

my special thanks to the whole employee fraternity of KARVY STOCK BROKING

LIMITED. Who were always there to extend a hand of co-operation, also to all

those respondents who facilitated me in successfully completing my project.

AMRUTHA SUBRAMANY

CERTIFICATE OF THE FACULTY GUIDE

This is to certified that the work entitled A STUDY OF INVESTMENT AVENUES AT

KARVYSTOCKBROKING LIMITED Study of the Bonanza Portfolio Ltd. is a piece of

summer project report done by Amrutha Subramany, student of MBA IV Semester bearing Enrollment No. 10AM51220, Under my Guidance and

Supervision for partial fulfillment of the requirement for MBA Degree in MANONMANIAM SUNDARANAR UNIVERSITY of INTERNATIONAL BUSINESS SCHOOL BANGALORE.

Forwarded,

Faculty Guide

Mr.SAPTARISHI MUKHERJEE
IBS Bangalore.

TABLE OF CONTENT
CONTENT
1 Declaration 2 Acknowledgment 3 Introduction 4 Company profile 5 Karvy Group 6 Mission & vision of Karvy 7 Achievements 8 Services of karvy 9 Products of karvy 10 Equity Shares 11 Mutual Funds 12 Insurance 13 Commodity 14 Public Provident Funds 15 Bonds/Debentures 16 Portfolio management 17 Research methodology 18 Questionnaire 19 Conclusion 20
2 3 6 16 18 19 27 28-29 32 32 36 49 54 56 58 62 74 82 89 90

PAGE NO

Bibliography

INTRODUCTION

INVESTMENT
What is 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. This is called Investment.

Why should one invest? One needs to invest to:

Earn return on your idle resources Generate a specified sum of money for a specific goal in life Make a provision for an uncertain future

One of the important reasons why one needs to invest wisely is to meet thecost of Inflation.Inflation is the rate at 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 isthe 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. For example, if the annual inflation rate is 6%, then the investment will need to earn more than 6% to ensure it increases in value. If the after-tax return on your investment is less than the inflation rate, then your assets have actually decreased in value; that is, they won't buy as much today as they did last year.

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:

Invest early Invest regularly Invest for long term and not short term

What care should one take while investing?

Before making any investment, one must ensure to:
1. Obtain written documents explaining the investment 2. Read and understand such documents 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 or youhave already made 10. Deal only through an authorized intermediary 11. Seek all clarifications about the intermediary and the investment 12. Explore the options available to you if something were to go wrong,and then, if satisfied, make the investment.

FINANCIAL MARKET
A Financial market is a mechanism that allows people to buy and sell (trade) financial securities (such as stocks and bonds), commodities (such as precious metals or agricultural goods), and other fungible items of value at low transaction costs and at prices that reflect the efficient-market hypothesis. Both general markets (where many commodities are traded) and specialized markets (where only one commodity is traded) exist. Markets work by placing many interested buyers and sellers in one "place", thus making it easier for them to find each other. An economy which relies primarily on interactions between buyers and sellers to allocate resources is known as a market economy in contrast either to a command economy or to a non-market economy such as a gift economy.

In finance, financial markets facilitate:

The raising of capital (in the capital markets) The transfer of risk (in the derivatives markets) The transfer of liquidity (in the money markets) International trade (in the currency markets)

Typically a borrower issues a receipt to the lender promising to pay back the capital. These receipts are securities which may be freely bought or sold. In return for lending money to the borrower, the lender will expect some compensation in the form of interest or dividends.

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classification of financial market

organised market
capital market
industrial security market

unorganised market
money market

Govt. securities market

long term loan market

call money market

comercial money market

treasury bill market

short term loan mark et

money lenders indigenous banker etc.

primary market

secondary market term loan market mortgage market market for financial guarantee s

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CLASSIFICATION OF FINANCIAL MARKET

UNORGANISED MARKETS In these markets there are number of money lenders, indigenous banker, traders etc., who lend money to public. Indigenous bankers also collect deposits from the public. There are also private finance companies, chit funds etc., whose activities are not controlled by the RBI. Recently the RBI has taken steps to bring private finance companies and chit funds under its strict control by issuing non banking financial companies Directions, 1998. The RBI has already taken some steps to bring the unorganized sector under the organized fold. The regulations concerning their financial dealing are still inadequate and their financial instruments have not been standardized. ORGANISED MARKET In the organized markets, there are standardized rules and regulations governing their financial dealings. There is also a high degree of institutionalization and instrumentalisation. These organized markets can be further classified into two. They are: (i) Capital market Money market

(ii)

I. CAPITAL MARKETS:
A capital market refers to the institutional arrangements for facilitating the borrowing and lending of long term funds. A capital market may be defined as an organized mechanism for effective and efficient transfer of money capital or financial resources from the investing parties i.e. individuals and institutional savers to the entrepreneurs engaged in industry or commerce in the business either to the public and private sectors of an economy. Capital market may be further divided into three names: (i) (ii) (iii) (I) Industrial securities markets Government securities market Long term loans market INDUSTRIAL SECURITIES MARKETS:

It is the market for industrial securities like equity shares, preference share, debentures and bond. It is the market where industrial concerns raise their capital or debt by issuing appropriate instruments. These are divided into two markets. (1) Primary market or new issue market (2) Secondary market or stock exchange
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PRIMARY MARKET Primary market is a market for new issues or new financial claims. The primary market deals with those securities which are issued to the public for the first time. In the primary market, borrowers exchange new financial securities for long term funds. There are three ways by which a company may raise capital in primary market. They are: 1> Public issue 2> Right issue 3> Private placements The most common method raising capital by new companies is through sale of securities to the public. It is called public issue. When an existing company wants to raise additional capital, securities are first offered to the existing share holders on a pre-emptive basis. It is called right issue. Private placement is a way of selling securities privately to the small group of investors. SECONDARY MARKET Secondary market is a market for secondary sale of securities. In other words, securities which have already passed through the new issue market are traded in this market. Generally, such securities are quoted in the stock market 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. (II) GOVERNMENT SECURITIES MARKET:

Government securities (G-secs) are sovereign securities which are issued by the Reserve Bank of India on behalf of Government of India, in lieu of the Central Government's market borrowing programmes.

The term Government Securities includes: Central Government Securities.

State Government Securities Treasury bills

The Central Government borrows funds to finance its 'fiscal deficit. The market borrowing of the Central Government is raised through the issue of dated securities and 364 days treasury bills either by auction or by floatation of loans.

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In addition to the above, treasury bills of 91 days are issued for managing the temporary cash mismatches of the Government. These do not form part of the borrowing programme of the Central Government.

(III)

LONG-TERM LOANS MARKET:

Development banks and commercial banks play a significant role in this market by supplying long term loans to corporate customers. Long term loans market may further be classified into: Term loans market Mortgages market Financial guarantees market

MONEY MARKET: Acc to RBI, money market is centre for dealings mainly of a short term character, in monetary assets; it meets the short term requirement of borrowers and provides liquidity or cash to the lenders. It is the place where short term surplus investible funds at the disposal of financial and other institutions and individuals are bid by borrowers, institutions, individuals and government itself.

Components/Sub markets of Money Market:

Call Money Market: It is a market where lending and borrowing takes place for a very short period not exceeding 7 days. Bill brokers and dealers in stock exchange usually borrow money at call from the commercial banks. There is no demand of collateral securities against call money.

They possess high liquidity; the borrowers are required to pay the loan as and when asked for i.e. money at call.
The investment of funds in the call money market meets the need of liquidity but not that of profitability because the rate of interest on call loans is very low.

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Collateral Loan Market: The loans are generally advanced by the commercial banks to private parties in the market. The collateral loans are backed by the securities, stocks and bonds. The collateral money is returned to the borrower when the loan is repaid. These loans are given for few months. Commercial Bills: Commercial bill or bill of exchange is a written instrument containing an unconditional order. The bill is signed by the drawer, directing a certain person to pay a certain sum of money only to, or to the bearer of the instrument at fixed time in future or on demand. Treasury Bills: It is a short term government security. Usually of a duration of 91 days Sold by the central bank on behalf on behalf of the government. There is no fixed rate of interest payable on treasury bills. These are sold by the central bank on the basis of competitive bidding. TB is allotted to the person who is satisfied with the lowest rate of interest on security. They are secured and highly liquid because of the guarantee of repayment assured by RBI who is always willing to purchase and re-discount them. Ordinary TBs Adhoc TBs are issued in favor of RBI with a view to replenish government cash balances by employing temporary surpluses of state government and semi government departments Commercial Paper: Launched in India by RBI in 1990 Short term promissory notes Issued by companies with good credit standing and having sufficient tangible assets like banks, insurance and finance companies etc.

They are unsecured and are negotiable by endorsement and delivery.

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COMPANY PROFILE

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Company profile
Type Industry Founded Founder(s) Year established Headquarter Employees Website Private Financial services 1979 Kutumbura, Ajay, Ramakrishnen, Vanket, Yogendra 23rd July 1983 Hyderabad 9000 www.karvy.com

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KARVY AS AN ORGANIZATION
KARVY, is a premier integrated financial services provider, and ranked among the top five in the country in all its business segments, services over 16 million individual investors in various capacities, and provides investor services to over 300 corporate, comprising the who is who of Corporate India. KARVY covers the entire spectrum of financial services such as Stock broking, Depository Participants, Distribution of financial products - mutual funds, bonds, fixed deposit, equities, Insurance Broking, Commodities Broking, Personal Finance Advisory Services, Merchant Banking & Corporate Finance, placement of equity, IPOs, among others. Karvy has a professional management team and ranks among the best in technology, operations and research of various industrial segments.. Karvy Consultants Limited. Started with consulting and financial accounting automation, and carved inroads into the field of registry and share accounting by 1985. Since then, Karvy used its experience and superlative expertise to go from strength to strength, to better services, to provide new ones, to innovate, diversify and in the process, evolved Karvy as one of Indias premier integrated financial service enterprise. Thus over the last 20 years Karvy has traveled the success route, towards building a reputation as an integrated financial services provider, offering a wide spectrum of services. And have made this journey by taking the route of quality service, path breaking innovations in service, versatility in service and finally totality in service. KARVY highly qualified manpower, cutting-edge technology, comprehensive infrastructure and total customer-focus has secured for the position of an emerging financial services giant enjoying the confidence and support of an enviable clientele across diverse fields in the financial world. Values and vision of attaining total competence in servicing has served as the building block for creating a great financial enterprise, which stands solid on our fortresses of financial strength various companies.

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With the experience of years of holistic financial servicing and years of complete expertise in the industry to look forward to, Karvy now emerged as a premier integrated financial services provider. As the flagship company of the Karvy Group, Karvy Consultants Limited has always remained at the helm of organizational affairs, pioneering business policies, work ethic and channels of progress. Mission Statement of Karvy An organization exists to accomplish something or achieve something. The missionstatement indicates what an organization wants to achieve. The mission statement may be changed periodically to take advantage of new opportunities or respond to new market conditions. Karvys mission statement is To Bring Industry, Finance and People together.Karvy is work as intermediary between industry and people. Karvy work as investment advisor and helps people to invest their money same way Karvy helps industry in achieving finance from people by issuing shares, debentures, bonds, mutual funds, fixed deposits etc. Companys mission statement is clear and thoughtful which guide geographically dispersed employees to work independently yet collectively towards achieving the organizations goals. Vision of Karvy Companys vision is crystal clear and mind frame very directed. To be pioneering financial services company. And continue to grow at a healthy pace, year after year, decade after decade. Companys foray into IT-enabled services and internet business has provided an opportunity to explore new frontiers and business solutions. To build a corporate that sets benchmarks for others to follow.

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Milestone of Karvy
INCEPTION Corporate Registry services Stock Broking & ISCs Financial Product Distribution Corporate Finance Depository Services ITES & BPO Services Secondary Debt & WDM Services Joint Venture with Computer Share Comtrade 2004 1997 2000 2001 2003 2004 1979 1985 1990 1993 1995

Personal Finance Advisory Services

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MAJOR AREAS OF OPERATION:

Karvy Consultants Limited Karvy Stock Broking Limited Karvy Investors Services Limited Karvy Computershare Pvt. Limited Karvy Global Services Limited Karvy Comtrade Limited Karvy Insurance Broking Private Limited

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Having emerged as a leader in the registry business, the first of the businesses that ventured into, Karvy transferred this business into a joint venture with Computershare Limited of Australia, the worlds largest registrar. With the advent of depositories in the Indian capital market and the relationships that have created in the registry business, believing they were best positioned to venture into this activity as a Depository Participant. Karvy is the early entrants registered as Depository Participant with NSDL (National Securities Depository Limited), the first Depository in the country and then with CDSL (Central Depository Services limited). Today, service over 6 lakh customer accounts in this business spread across over 250 cities/towns in India and are ranked amongst the largest Depository Participants in the country. With a growing secondary market presence, we have transferred this business to Karvy Stock Broking Limited (KSBL), associate and a member of NSE, BSE and HSE.

IT enabled services:Technology Services division forms the ideal platform to unleash technology initiatives and make our presence felt on the Internet. Past achievements include many quality websites designed, developed and deployed by it. Karvy also possess own web hosting facilities with dedicated bandwidth and a state-of-the-art server farm (data center) with services functioning on a variety of operating platforms such as Windows, Solaris, Linux and Unix. The corporate website of the company, www.karvy.com, gives access to in-depth information on financial matters including Mutual Funds, IPOs, Fixed Income Schemes, Insurance, Stock Market and much more. A link called Resource Center, devoted solely to research conducted by our team of experts on various financial aspects like Sector Research, deals exclusively with in-depth analysis of the key sectors of the Indian economy. Besides, a host of other links like My Portfolio which acts as a personalized and customized financial measure, makes this site extremely informative about investment options, market trends, news as also about our company and each of the services offered here.

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Member - National Stock Exchange (NSE), The Bombay Stock Exchange (BSE), and The Hyderabad Stock Exchange (HSE).Karvy Stock Broking Limited, one of the cornerstones of the Karvy edifice, flows freely towards attaining diverse goals of the customer through varied services. Creating a plethora of opportunities for the customer by opening up investment vistas backed by research-based advisory services. Here, growth knows no limits and success recognizes no boundaries. Helping the customer create waves in his portfolio and empowering the investor completely is the ultimate goal.

Stock Broking Services:Karvy offer services that are beyond just a medium for buying and selling stocks and shares. Instead we provide services which are multi dimensional and multi-focused in their scope. There are several advantages in utilizing our Stock Broking services, which are the reasons why it is one of the best in the country. It offers trading on a vast platform National Stock Exchange, Bombay Stock Exchange and Hyderabad Stock Exchange. More importantly, they make trading safe to the maximum possible extent, by accounting for several risk factors and planning accordingly. Assisted in this task by in-depth research, constant feedback and sound advisory facilities. Highly skilled research team, comprising of technical analysts as well as fundamental specialists, secure result-oriented information on market trends, market analysis and market predictions. This crucial information is given as a constant feedback to customers, through daily reports delivered thrice daily; The Pre-session Report, where market scenario for the day is predicted, The Mid-session Report, timed to arrive during lunch break, where the market forecast for the rest of the day is given and The Post-session Report, the final report for the day, where the market and the report itself is reviewed. Karvy also offer special portfolio analysis packages that provide daily technical advice on scrips for successful portfolio management and provide customized advisory services to help you make the right financial moves that are specifically suited to customer portfolio. Karvy Stock Broking services are widely networked across India, with the number of trading terminals providing retail stock broking facilities, services have increasingly offered customer oriented convenience, which provide to a spectrum of investors, high-net worth or otherwise, with equal dedication and competence. To empower the investor further we have made serious efforts to ensure that research calls are disseminated systematically to all our stock broking clients through various delivery channels like email, chat, SMS, phone calls etc.

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Merchant Banking: Recognized as a leading merchant banker in the country, registered with SEBI as category one merchant banker. This reputation was built by capitalizing on opportunities in corporate consolidations, mergers and acquisitions and corporate restructuring, which have earned the reputation of a merchant banker. Raising resources for corporate or Government Undertaking successfully over the past two decades have given us the confidence to renew focus in this sector. Quality professional team and work-oriented dedication have propelled to offer valueadded corporate financial services and act as a professional navigator for long term growth of our clients, who include leading corporate, State Governments, foreign institutional investors, public and private sector companies and banks, in Indian and global markets. Karvy also emerged as a trailblazer in the arena of relationships, both at the customer and trade levels because of unshakable integrity, seamless service and innovative solutions that are tuned to meet varied needs. Team of committed industry specialists, having extensive experience in capital markets, further nurtures this relationship. Financial advice and assistance in restructuring, divestitures, acquisitions, de-mergers, spin-offs, joint ventures, privatization and takeover defense mechanisms have elevated relationship with the client to one based on unshakable trust and confidence.

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Karvy has traversed wide spaces to tie up with the worlds largest transfer agent, the leading Australian company, Computershare Limited. The company that services more than 75 million shareholders across 7000 corporate clients and makes its presence felt in over 12 countries across 5 continents has entered into a 50-50 joint venture with us. With management team completely transferred to this new entity, we will aim to enrich the financial services industry than before. The future holds new arenas of client servicing and contemporary and relevant technologies as we are geared to deliver better value and foster bigger investments in the business. The worldwide network of Computershare will hold in good stead as expect to adopt international standards in addition to leveraging the best of technologies from around the world. Excellence has to be the order of the day when two companies with such similar ideologies of growth, vision and competence, get together. Issue Registry:In voyage towards becoming the largest transaction-processing house in the Indian Corporate segment, Karvy have mobilized funds for numerous corporate, Karvy has emerged as the largest transaction-processing house for the Indian Corporate sector. With an experience of handling over 700 issues, Karvy today, has the ability to execute voluminous transactions and hard-core expertise in technology applications have gained us the No.1 slot in the business. Karvy is the first Registry Company to receive ISO 9002 certification in India that stands testimony to its stature Karvy has the backing of skilled human resources complemented by requisite technological packages to ensure a faster processing capability. Karvy has the benefit of a good synergy between depositories and registry that enables faster resolution to related customer queries. Apart from its unique investor servicing presence in all the phases of a public Issue, it is actively coordinating with both the main depositories to develop special models to enable the customer to access depository (NSDL, CDSL) services during an IPO. Karvytrustworthy reputation, competent manpower and high-end technology and infrastructure are the solid foundations on which success is built

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The specialist Business Process Outsourcing unit of the Karvy Group. The legacy of expertise and experience in financial services of the Karvy Group serves well as enter the global arena with the confidence of being able to deliver and deliver well. Here it offers several delivery models on the understanding that business needs are unique and therefore only a customized service could possibly fit the bill. Service matrix has permutations and combinations that create several options to choose from. Be it in re-engineering and managing processes or delivering new efficiencies, service meets up to the most stringent of international standards , outsourcing models are designed for the global customer and are backed by sound corporate and operations philosophies, and domain expertise. Providing productivity improvements, operational cost control, cost savings, improved accountability and a whole gamut of other advantages. Karvy operate in the core market segments that have emerging requirements for specialized services, wide vertical market coverage includes Banking, Financial and Insurance Services (BFIS), Retail and Merchandising, Leisure and Entertainment, Energy and Utility and Healthcare. Karvy horizontal offerings do justice to our stance as a comprehensive BPO unit and include a variety of services in Finance and Accounting Outsourcing Operations, Human Resource Outsourcing Operations, Research and Analytics outsourcing Operations and Insurance Back Office Outsourcing Operations.

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At Karvy Commodities, focused on taking commodities trading to new dimensions of reliability and profitability. Karvy have made commodities trading, an essentially age-old practice, into a sophisticated and scientific investment option .Here it enable trade in all goods and products of agricultural and mineral origin that include lucrative commodities like gold and silver and popular items like oil, pulses and cotton through a well systematized trading platform, technological and infrastructural strengths and especially street-smart skills make an ideal broker. Service matrix is holistic with a gamut of advantages, the first and foremost being legacy of human resources, technology and infrastructure that comes from being part of the Karvy Group. Karvy wide national network, spanning the length and breadth of India, further supports these advantages. Regular trading workshops and seminars are conducted to hone trading strategies to perfection. Every move made is a calculated one, based on reliable research that is converted into valuable information through daily, weekly and monthly newsletters, calls and intraday alerts. Further, personalized service is provided here by a dedicated team committed to giving hassle-free service while the brokerage rates offered are extremely competitive. Commitment to excel in this sector stems from the immense importance that commodity broking has to a cross-section of investors & farmers, exporters, importers, manufacturers and the Government of India itself.

Achievements
Among the top 5 stock brokers in India (4% of NSE volumes) India's No. 1 Registrar & Securities Transfer Agents Among the top 3 Depository Participants Largest Network of Branches & Business Associates ISO 9002 certified operations by DNV Among top 10 Investment bankers Largest Distributor of Financial Products Adjudged as one of the top 50 IT uses in India by MIS Asia Fully Fledged IT driven operations

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Various milestones towards success:

SERVICES PROVIDED BY KARVY STOCK BROKING LTD:

DEMAT Account (I ZONE +) Demat refers to a dematerialized account. Though the company is under obligation to offer the securities in both physical and Demat mode, you have the choice to receive the securities in either mode. If you wish tohave securities in demat mode, you need to indicate the name of the depository and alsoof the depository participant with whom you have depository account in yourapplication. It is,

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however desirable that you hold securities in demat form as physicalsecurities carry the risk of being fake, forged or stolen. Just as you have to open an account with a bank if you want to save your money, makecheque payments etc, Nowadays, you need to open a demat account if you want to buyor sell stocks. KARVY I-ZONE PLUS: Itis a brand new comprehensive onlineInvestment platform launched by KARVY for the discerning clients. This product provides the requisite advice& resources to clients for making judicious investments decisions amongst various asset classes& products, based on specific risk and return profile of the client as well as on the time horizon for the investments. The investmentadvice is provided based on in-depth research conducted by KARVY.

I-Zone Plusoffers the advantage of confident investmenttransactions in equities, commodities

and currency derivatives, mutual funds, IPOs of equity shares through a state-of-the-art online investment platform with fully secure online payment gateways with multiple banks.

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ADVANTAGES:
Advisory service with a comprehensive online investment platform. Free financial advise on portfolio allocation in various asset Classes Free online stock-broking and attractive margin funding options Daily equity market research reports and calls through SMS Life time free demat account Free Mutual Fund transactions to an unlimited extent, including Unlimited SIP transactions Access to research reports on Mutual Funds, IPOs andInsurance Free online commodities broking account Application in IPOs with attractive loan options for applications Regular portfolio statement for better planned future Investments Loans against securities Free subscription of KARVY FinaPolis magazineProvides comprehensive advisory service for smartinvestments Offers comprehensive product range Enables transaction in NSE, BSE, MCX and NCDEX Enables both cash and derivative trading in equities Enables trading in currency and commodity derivative Unlimited transactions in Mutual Funds Enables online application for IPOs Easy transfer of money through secured online payment Gateways with multiple banks ICICI, HDFC, axis bank.

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HOW TRANSACTION WORK:

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PRODUCTS OFFERED BY KARVY STOCK BROKING LTD:

EQUITY SHARES:
ABOUT SHARES:At the most basic level, stock (often referred to as shares) is ownership, or equity, in a company. Investors buy stock in the form of shares, which represent a portion of a company's assets (capital) and earnings (dividends). As a shareholder, the extent of your ownership (your stake) in a company depends on the number of shares you own in relation to the total number of shares available For example, if you buy 1000 shares of stock in a company that has issued a total of 100,000 shares, you own one per cent of the company. While one per cent seems like a small holding, very few private investors are able to accumulate a shareholding of that size in publicly quoted companies, many of which have a market value running into billions of pounds. Your stake may authorize you to vote at the company's annual general meeting, where shareholders usually receive one vote per share. In theory, every stockholder, no matter how small their stake, can exercise some influence over company management at the annual general meeting. In reality, however, most private investors' stakes are insignificant. Management policy is far more likely to be influenced by the votes of large institutional investors such as pension funds. a) STOCKS SYMBOLS:A stock symbol, or 'Epic' symbol, is the standard abbreviation of a stock's name. You can find stock symbols wherever stock performance information is published - for example, newspaper stock listings and investment websites. Company names also have abbreviations called ticker symbols. However, it's worth remembering that these may vary at the different exchanges where the company is quoted.

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b) PERFORMANCE INDICATORS:Here is a list of the standard performance indicators.

Performance Indicator Definition

Closing price High and low day 52 week range Volume and low Net change the

the last price at which the stock was bought or sold the highest and lowest price of the stock from the previous trading

the highest and lowest price over the previous 52 weeks The amount of shares traded during the previous trading day High

The difference between the closing price on the last trading day and closing price on the trading day prior to the last

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THE STOCK EXCHANGES:-

A marketplace in which to buy or sell something makes life a lot easier. The same applies to stocks. A stock exchange is an organization that provides a marketplace in which investors and borrowers trade stocks. Firstly, the stock exchange is a market for issuers who want to raise equity capital by selling shares to investors in an Initial Public Offering (IPO). The stock exchange is also a market for investors who can buy and sell shares at any time.

a) Trading shares on the stock exchange:

As an investor in the INDIA, you can't buy or sell shares on a stock exchange yourself. You need to place your order with a stock exchange member firm (a stockbroker) who will then execute the order on your behalf. The NSE AND BSE are the leading stock exchange in the INDIA. Trading is done through computerized systems.

b) The trading process:If you decide to buy or sell your shares, you need to contact a stockbroker who will buy or sell the shares on your behalf. After receiving your order, the stockbroker will input the order on the SETS or SEAQ system to match your order with that of another buyer or seller. Details of the trade are transmitted electronically to the stockbroker who is responsible for settling the trade. You will then receive confirmation of the deal.
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c) Types of shares available on the stock exchange:You cannot trade all stocks on the stock exchange. To be listed on a stock exchange, a stock must meet the listing requirements laid down by that exchange in its approval process. Each exchange has its own listing requirements, and some exchanges are more particular than others. It is possible for a stock to be listed on more than one exchange. This is known as a dual listing. FACTORS THAT INFLUENCE THE PRICE OF THE STOCK: Broadly there are two factors: (1) Stock specific (2) Market specific The stock-specific factor is related to peoples expectations about the company, its futureearnings capacity, financial health and management, level of technology and marketingskills. The market specific factor is influenced by the investors sentiment towards the stock market as a whole. This factor depends on the environment rather than the performance ofany particular company. Events favorable to an economy, political or regulatory environment like high economic growth, friendly budget, stable government etc. can fuel euphoria in the investors,resulting in a boom in the market. On the other hand, unfavorable events like war,economic crisis, communal riots, minority government etc. depress the marketirrespective of certain companies performing well. However, the effect of market-specificfactor is generally short-term. Despite ups and downs, price of a stock in the long run gets stabilized based on the stock specific factors. Therefore, a prudent advice to all investors is to analyze and invest and not speculate in shares.

ACQUIRING EQUITY SHARES: There are two methods:

You may subscribe to issues made by corporate in the primary market. In theprimary market, resources are mobilized by the corporate through fresh public issues (IPOs) or through private placements.
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OR

You may purchase shares from the secondary market. To buy and sell securitiesyou should approach a SEBI registered trading member (broker) of a recognized stock exchange.

Mutual Fund:Mutual fund is a pool of money collected from investors and is invested according to stated investment objectives Mutual fund investors are like shareholders and they own the fund. Mutual fund investors are not lenders or deposit holders in a mutual fund. Everybody else associated with a mutual fund is a service provider, who earns a fee. The money in the mutual fund belongs to the investors and nobody else. Mutual funds invest in marketable securities according to the investment objective. The value of the investments can go up or down, changing the value of the investors holdings.NAV of a mutual fund fluctuates with market price movements. The market value of the investors funds is also called as net assets. Investors hold a proportionate share of the fund in the mutual fund. New investors come in and old investors can exit, at prices related to net asset value per unit. Emergence of Mutual Funds:Mutual Funds now represent perhaps the most appropriate investment opportunity for most small investors. As financial markets become more sophisticated and complex, investor need a financial intermediary who provides the required knowledge and professional expertise on successful investing. It is no wonder then that in the birthplace of mutual funds-the U.S.A.-the fund industry has already overtaken the banking industry, with more money under Mutual Fund management than deposited with banks. The Indian Mutual Fund industry has already opened up many exciting investment opportunities to Indian investors. Despite the expected continuing growth in the industry, Mutual Fund is a still new financial intermediary in India.

History of Mutual Funds:In the second half of 19th century, investor in UK considered the stock market is good for the investment. But for small investor it is not possible to operate in the market effectively. This led to establishment of an investment company which led to the small investor to invest in equity market. The first investment company was the Scottish-American Investment Company, set up in London in 1860

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Mutual Fund Industry in India: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 own. Also, one doesn't have to figure out which stocks or bonds to buy. But the biggest advantage of mutual funds is diversification. Diversification means spreading out money across many different types of investments. When one investment is down another might be up. Diversification of investment holdings reduces the risk tremendously. In 1963, the government of India took the initiative by passing the UTI act, under which the Unit Trust of India (UTI) was set-up as a statutory body. The designated role of UTI was to set up a Mutual Fund. UTIs first scheme, called. In 1987 the other public sector institutions set up their Mutual Funds. In 1992, government allowed the private sector players to set-up their funds. In 1994 the foreign Mutual Funds arrives in Indian market. In 2001 there is a crisis in UTI and in 2003 UTI splits up into UTI 1and UTI 2. The history of Indian Mutual Fund industry can be explained easily by various phases: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

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MUTUAL FUND OPERATION FLOW CHART

Benefits of Investing in Mutual Funds

Professional Management: Mutual Funds provide the services of experienced and skilled professionals, backed by a dedicated investment research team that analyses the performance and prospects of companies and selects suitable investments to achieve the objectives of the scheme. Diversification: Mutual Funds invest in a number of companies across a broad cross-section of industries and sectors. This diversification reduces the risk because seldom do all stocks decline at the same time and in the same proportion. You achieve this diversification through a Mutual Fund with far less money than you can do on your own. ConvenientAdministration: Investing in a Mutual Fund reduces paperwork and helps you avoid many problems such as bad deliveries, delayed payments and follow up with brokers and companies. Mutual Funds save your time and make investing easy and convenient.

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ReturnPotential:

Over a medium to long-term, Mutual Funds have the potential to provide a higher return as they invest in a diversified basket of selected securities. LowCosts: Mutual Funds are a relatively less expensive way to invest compared to directly investing in the capital markets because the benefits of scale in brokerage, custodial and other fees translate into lower costs for investors.

Liquidity: In open-end schemes, the investor gets the money back promptly at net asset value related prices from the Mutual Fund. In closed-end schemes, the units can be sold on a stock exchange at the prevailing market price or the investor can avail of the facility of direct repurchase at NAV related prices by the Mutual Fund. Transparency: You get regular information on the value of your investment in addition to disclosure on the specific investments made by your scheme, the proportion invested in each class of assets and the fund manager's investment strategy and outlook.

Flexibility: Through features such as regular investment plans, regular withdrawal plans and dividend reinvestment plans, you can systematically invest or withdraw funds according to your needs and convenience. Affordability:

Investors individually may lack sufficient funds to invest in high-grade stocks. A mutual fund because of its large corpus allows even a small investor to take the benefit of its investment strategy. ChoiceofSchemes: Mutual Funds offer a family of schemes to suit your varying needs over a lifetime. WellRegulated: All Mutual Funds are registered with SEBI and they function within the provisions of strict

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regulations designed to protect the interests of investors. The operations of Mutual Funds are regularly monitored by SEBI.

Disadvantages of Investing Mutual Funds

Professional Management: Some funds doesnt perform in neither the market, as their management is not dynamic enough to explore the available opportunity in the market, thus many investors debate over whether or not the socalled professionals are any better than mutual fund or investor himself, for picking up stocks. Costs: The biggest source of AMC income is generally from the entry & exit load which they charge from investors, at the time of purchase. The mutual fund industries are thus charging extra cost under layers of jargon. Dilution: Because funds have small holdings across different companies, high returns from a few investments often don't make much difference on the overall return. Dilution is also the result of a successful fund getting too big. When money pours into funds that have had strong success, the manager often has trouble finding a good investment for all the new money.

Taxes: When making decisions about your money, fund managers don't consider your personal tax situation. For example, when a fund manager sells a security, a capital-gain tax is triggered, which affects how profitable the individual is from the sale. It might have been more advantageous for the individual to defer the capital gains liability.

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Types of Mutual Funds

Mutual fund schemes may be classified on the basis of its structure and its objective:-

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

Closed-ended Funds:
A closed-end fund has a stipulated maturity period which generally ranging from 3 to 15 years. The fund is open for subscription only during a specified period. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where they are listed. In order to provide an exit route to the investors, some close-ended funds give an option of selling back the units to the Mutual Fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor.

Interval Funds:Interval funds combine the features of open-ended and close-ended schemes. They are open for sale or redemption during pre-determined intervals at NAV related prices.

Money Market Funds:The aim of money market funds is to provide easy liquidity, preservation of capital and moderate income. These schemes generally invest in safer short-term instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank call money. Returns on these schemes may fluctuate depending upon the interest rates prevailing in the market. These are idealfor Corporate and individual investors as a means to park their surplus funds for short periods.

Load Funds:A Load Fund is one that charges a commission for entry or exit. That is, each time you buy or sell units in the fund, a commission will be payable. Typically entry and exit loads range from 1% to 2%. It could be worth paying the load, if the fund has a good performance history.

No-Load Funds:41

A No-Load Fund is one that does not charge a commission for entry or exit. That is, no commission is payable on purchase or sale of units in the fund. The advantage of a no load fund is that the entire corpus is put to work.

Tax Saving Schemes:These schemes offer tax rebates to the investors under specific provisions of the Indian Income Tax laws as the Government offers tax incentives for investment in specified avenues. Investments made in Equity Linked Savings Schemes (ELSS) and Pension Schemes are allowed as deduction u/s 88 of the Income Tax Act, 1961. The Act also provides opportunities to investors to save capital gains u/s 54EA and 54EB by investing in Mutual Funds, provided the capital asset has been sold prior to April 1, 2000 and the amount is invested before September 30, 2000.

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VARIOUS TYPES OF MUTUAL FUNDS:

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Equity Funds: Equity funds are considered to be the more risky funds as compared to other fund types, but they also provide higher returns than other funds. It is advisable that an investor looking to invest in an equity fund should invest for long term i.e. for 3 years or more. There are different types of equity funds each falling into different risk bracket. In the order of decreasing risk level, there are following types of equity funds:AGGRESSIVE GROWTH FUNDS:-

In Aggressive Growth Funds, fund managers aspire for maximum capital appreciation and invest in less researched shares of speculative nature. Because of these speculative investments Aggressive Growth Funds become more volatile and thus, are prone to higher risk than other equity funds.
GROWTH FUNDS: -

Growth Funds also invest for capital appreciation (with time horizon of 3 to 5 years) but they are different from Aggressive Growth Funds in the sense that they invest in companies that are expected to outperform the market in the future. Without entirely adopting speculative strategies, Growth Funds invest in those companies that are expected to post above average earnings in the future. SPECIALTY FUNDS: Specialty Funds have stated criteria for investments and their portfolio comprises of only those companies that meet their criteria. Criteria for some specialty funds could be to invest/not to invest in particular regions/companies. Specialty funds are concentrated and thus, are comparatively riskier than diversified funds. There are following types of specialty funds: Sector Funds:-

Equity funds that invest in a particular sector/industry of the market are known as Sector Funds. The exposure of these funds is limited to a particular sector (say Information Technology, Auto, Banking, Pharmaceuticals or Fast Moving Consumer Goods) which is why they are more risky than equity funds that invest in multiple sectors. Foreign Securities Funds:-

Foreign Securities Equity Funds have the option to invest in one or more foreign companies. Foreign securities funds achieve international diversification and hence they are less risky than sector funds. However, foreign securities funds are exposed to foreign exchange rate risk and country risk.

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Mid-Cap or Small-Cap Funds:-

Funds that invest in companies having lower market capitalization than large capitalization companies are called Mid-Cap or Small-Cap Funds. Market capitalization of Mid-Cap companies is less than that of big, blue chip companies (less than Rs. 2500 crore but more than Rs. 500 crore) and Small-Cap companies have market capitalization of less than Rs. 500 crore. Market Capitalization of a company can be calculated by multiplying the market price of the company's share by the total number of its outstanding shares in the market. The shares of MidCap or Small-Cap Companies are not as liquid as of Large-Cap Companies which gives rise to volatility in share prices of these companies and consequently, investment gets risky. Option Income Funds:-

While not yet available in India, Option Income Funds write options on a large fraction of their portfolio. Proper use of options can help to reduce volatility, which is otherwise considered as a risky instrument. These funds invest in big, high dividend yielding companies, and then sell options against their stock positions, which generate stable income for investors. DIVERSIFIED EQUITY FUNDS: Except for a small portion of investment in liquid money market, diversified equity funds invest mainly in equities without any concentration on a particular sector(s). These funds are well diversified and reduce sector-specific or company-specific risk. However, like all other funds diversified equity funds too are exposed to equity market risk. One prominent type of diversified equity fund in India is Equity Linked Savings Schemes (ELSS). As per the mandate, a minimum of 90% of investments by ELSS should be in equities at all times. ELSS investors are eligible to claim deduction from taxable income (up to Rs 1 lakh) at the time of filing the income tax return. ELSS usually has a lock-in period and in case of any redemption by the investor before the expiry of the lock-in period makes him liable to pay income tax on such income(s) for which he may have received any tax exemption(s) in the past. Equity Index Funds: Equity Index Funds have the objective to match the performance of a specific stock market index. The portfolio of these funds comprises of the same companies that form the index and is constituted in the same proportion as the index. Equity index funds that follow broad indices (like S&P CNX Nifty, Sensex) are less risky than equity index funds that follow narrow sectoral indices (like BSEBANKEX or CNX Bank Index etc). Narrow indices are less diversified and therefore, are more risky.

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VALUE FUNDS:Value Funds invest in those companies that have sound fundamentals and whose share prices are currently under-valued. The portfolio of these funds comprises of shares that are trading at a low Price to Earnings Ratio (Market Price per Share / Earning per Share) and a low Market to Book Value (Fundamental Value) Ratio. Value Funds may select companies from diversified sectors and are exposed to lower risk level as compared to growth funds or specialty funds. Value stocks are generally from cyclical industries (such as cement, steel, sugar etc.) which make them volatile in the short-term. Therefore, it is advisable to invest in Value funds with a long-term time horizon as risk in the long term, to a large extent, is reduced.

EQUITY INCOME OR DIVIDEND YIELD FUNDS: The objective of Equity Income or Dividend Yield Equity Funds is to generate high recurring income and steady capital appreciation for investors by investing in those companies which issue high dividends (such as Power or Utility companies whose share prices fluctuate comparatively lesser than other companies' share prices). Equity Income or Dividend Yield Equity Funds are generally exposed to the lowest risk level as compared to other equity funds.
DEBT / INCOME FUNDS:-

Funds that invest in medium to long-term debt instruments issued by private companies, banks, financial institutions, governments and other entities belonging to various sectors (like infrastructure companies etc.) are known as Debt / Income Funds. Debt funds are low risk profile funds that seek to generate fixed current income (and not capital appreciation) to investors. In order to ensure regular income to investors, debt (or income) funds distribute large fraction of their surplus to investors. Although debt securities are generally less risky than equities, they are subject to credit risk (risk of default) by the issuer at the time of interest or principal payment. To minimize the risk of default, debt funds usually invest in securities from issuers who are rated by credit rating agencies and are considered to be of "Investment Grade". Debt funds that target high returns are more risky. Based on different investment objectives, there can be following types of debt funds:Diversified Debt Funds: Debt funds that invest in all securities issued by entities belonging to all sectors of the market are known as diversified debt funds. The best feature of diversified debt funds is that investments are properly diversified into all sectors which results in risk reduction. Any loss incurred, on account of default by a debt issuer, is shared by all investors which further reduces risk for an individual investor.

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Focused Debt Funds: Unlike diversified debt funds, focused debt funds are narrow focus funds that are confined to investments in selective debt securities, issued by companies of a specific sector or industry or origin. Some examples of focused debt funds are sector, specialized and offshore debt funds, funds that invest only in Tax Free Infrastructure or Municipal Bonds. Because of their narrow orientation, focused debt funds are more risky as compared to diversified debt funds. Although not yet available in India, these funds are conceivable and may be offered to investors very soon. High Yield Debt funds: As we now understand that risk of default is present in all debt funds, and therefore, debt funds generally try to minimize the risk of default by investing in securities issued by only those borrowers who are considered to be of "investment grade". But, High Yield Debt Funds adopt a different strategy and prefer securities issued by those issuers who are considered to be of "below investment grade". The motive behind adopting this sort of risky strategy is to earn higher interest returns from these issuers. These funds are more volatile and bear higher default risk, although they may earn at times higher returns for investors. Assured Return Funds: Although it is not necessary that a fund will meet its objectives or provide assured returns to investors, but there can be funds that come with a lock-in period and offer assurance of annual returns to investors during the lock-in period. Any shortfall in returns is suffered by the sponsors or the Asset Management Companies (AMCs). These funds are generally debt funds and provide investors with a low-risk investment opportunity. However, the security of investments depends upon the net worth of the guarantor (whose name is specified in advance on the offer document). To safeguard the interests of investors, SEBI permits only those funds to offer assured return schemes whose sponsors have adequate net-worth to guarantee returns in the future. In the past, UTI had offered assured return schemes (i.e. Monthly Income Plans of UTI) that assured specified returns to investors in the future. UTI was not able to fulfill its promises and faced large shortfalls in returns. Eventually, government had to intervene and took over UTI's payment obligations on itself. Currently, no AMC in India offers assured return schemes to investors, though possible.
GILT FUNDS:-

Also known as Government Securities in India, Gilt Funds invest in government papers (named dated securities) having medium to long term maturity period. Issued by the Government of India, these investments have little credit risk (risk of default) and provide safety of principal to the investors. However, like all debt funds, gilt funds too are exposed to interest rate risk. Interest rates and prices of debt securities are inversely related and any change in the interest rates results in a change in the NAV of debt/gilt funds in an opposite direction.
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MONEY MARKET / LIQUID FUNDS:-

Money market / liquid funds invest in short-term (maturing within one year) interest bearing debt instruments. These securities are highly liquid and provide safety of investment, thus making money market / liquid funds the safest investment option when compared with other mutual fund types. However, even money market / liquid funds are exposed to the interest rate risk. The typical investment options for liquid funds include Treasury Bills (issued by governments), Commercial papers (issued by companies) and Certificates of Deposit (issued by banks).

HYBRID FUNDS:-

As the name suggests, hybrid funds are those funds whose portfolio includes a blend of equities, debts and money market securities. Hybrid funds have an equal proportion of debt and equity in their portfolio. There are following types of hybrid funds in India: Balanced Funds: The portfolio of balanced funds includes assets like debt securities, convertible securities, and equity and preference shares held in a relatively equal proportion. The objectives of balanced funds are to reward investors with a regular income, moderate capital appreciation and at the same time minimizing the risk of capital erosion. Balanced funds are appropriate for conservative investors having a long term investment horizon. Growth-and-Income Funds: Funds that combine features of growth funds and income funds are known as Growthand-Income Funds. These funds invest in companies having potential for capital appreciation and those known for issuing high dividends. The level of risks involved in these funds is lower than growth funds and higher than income funds.

COMMODITY FUNDS:-

Those funds that focus on investing in different commodities (like metals, food grains, crude oil etc.) or commodity companies or commodity futures contracts are termed as Commodity Funds. A commodity fund that invests in a single commodity or a group of commodities is a specialized commodity fund and a commodity fund that invests in all available commodities is a diversified commodity fund and bears less risk than a specialized commodity fund. "Precious Metals Fund" and Gold Funds (that invest in gold, gold futures or shares of gold mines) are common examples of commodity funds.

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INSURANCE:
People need insurance in the first place. An insurance policy is primarily meant to protect the income of the familys bread earners. The idea is if any one or both die their dependents continue to live comfortably. The circle of life begins at birth follower by education , marriage and eventually after a lifetime of work we look forward to life of retirement . Our finances too tend to change as we go through the various phases of life. In the first twenty of our life, we are financially and emotionally dependents on our parents and their are no financial committments to be met.In the next twenty years we gain financial independence and provide financial independence to our families. This is also the stage when our income may be unable to meet the growing expenses of a young household. In the next twenty as we see our investments grow after our children grow and become financially independent. Insurance is a provision for the distribution of risks that is to say it is a financial provision against loss from unavoidable disasters. The protection which it affords takes form of a guarantee to indemnify the insured if certain specified losses occur. The principle of insurance so far as the undertaking of the obligation is concerned is that for the payment of a certain sum the guarantee will be given to reimburse the insured. The insurer in accepting the risks so distributes them that the total of all the amounts is paid for this insurance protection will be sufficient to meet the losses that occur. Insurance then provide divided responsibility. This principle is introduced in most stores where a division is made between the sales clerk and the cashiers department the arrangement dividing the risks of loss. The insurance principle is similarly applied in any other cases of divided responsibility. As a business however insurance is usually recognized as some form of securing a promise of indemnity by the payment of premium and the fulfillment of certain other stipulations.

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TYPES OF INSURANCE

LIFE INSURANCE

NON-LIFE INSURANCE

Term Whole life Money Back Endowment Assurance Pension Plan Unit Linked Product (ULIP) Property Personal Lifestyle Package

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Life Insurance:
All policies are not the same. Some give coverage for your lifetime and others cover you for a specific number of years. Term insurance plans: Term insurance is the cheapest form of life insurance available. Since a term insurance contract only pays in the event of eventuality the life cover comes at low premium rates. Term insurance is a useful tool to purchase against risk of early death and protection of an asset. Endowment plans: Endowment plans are savings and protection plans that provide a dual benefit of protection as well as savings. Endowment plans pay a death benefit in the event of an eventuality should the customer survive the benefit period a maturity benefit is paid to the life insured. Whole of life plans: A whole of life plan provides life insurance cover to an individualup to a specified age. A whole of life plan is suitable for an individual who is looking for an extended life insurance cover and /or wants to pay premium over as long as tenure as possible to reduce the amount of upfront premium payment. Pension plans: Pension plans allow an individual to save in a tax differed manner. An individual can either contribute through regular premiums or make a single premium investment. Savings accumulate over the deferment period. Once the contract reaches the vesting age, the individual has the option of choosing an annuity plan from a life insurance company. An annuity is paid till the life the lifetime of the insured or a pre-determined period depending upon the annuity option chosen by the life insured.

Unit Linked Insurance Plans: Unit linked insurance plan (ULIP) is life insurance solution that provides for the benefits of risk 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.
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In a ULIP, the invested amount of the premiums after deducting for all the charges and premium for risk cover under all policies in a particular fund as chosen by the policy holders are pooled together to form a Unit fund. A Unit is the component of the Fund ina Unit Linked Insurance Policy. The returns in a ULIP depend upon the performance of the fund in the capital market. ULIP investors have the option of investing across various schemes, i.e., diversified equity funds, balanced funds, debt funds etc. It is important to remember that in a ULIP, the investment risk is generallyborne by the investor.

In a ULIP, investors have the choice of investing in a lump sum (single premium) or making premium payments on an annual, half-yearly, quarterly or monthly basis. Investors also have the flexibility to alter the premium amounts during the policy's tenure. For example, if an individual has surplus funds, he can enhance the contribution in ULIP. Conversely an individual faced with a liquidity crunch has the option of paying a lower amount (the difference being adjusted in the accumulated value of his ULIP). ULIP investors can shift their investments across various plans/asset classes (diversified equity funds, balanced funds, debt funds) either at a nominal or no cost.

Expenses Charged in a ULIP:

Premium Allocation Charge: A percentage of the premium is appropriated towards charges initial and renewal expenses apart from commission expenses before allocating the units under the policy. Mortality Charges: These are charges for the cost of insurance coverage and depend on number of factors such as age, amount of coverage, state of health etc. Fund Management Fees: Fees levied for management of the fund and is deducted before arriving at the NAV.

Administration Charge: This is the charge for administration of the plan and is leviedbycancellation of units.

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Surrender Charge: Deducted for premature partial or full encashment of units.

Fund Switching Charge: Usually a limited number of fund switches are allowed each year without charge, with subsequent switches, subject to a charge.

Service Tax Deductions: Service tax is deducted from the risk portion of the premium.

General Insurance:
General insurance typically comprises any insurance that is not determined to be life insurance. It is called property and casualty (P&C) insurance in the U.S. General insurance policies, including automobile, accidents and homeowners policies, providepayments depending on the loss from a particular financial event.

Following are the different types of general insurances: Property Personal Lifestyle Package

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COMMODITIES:
A commodity is a normal physical product used by everyday people during the course of their lives, or metals that are used in production or as a traditional store of wealth and a hedge against inflation. For example, these commodities include grains such as wheat, corn and rice or metals such as copper, gold and silver. The full list of commodity markets is numerous and too detailed. The best way to trade the commodity markets is by buying and selling futures contracts on local and international exchanges. Trading futures is easy, and can be accessed by using the services of any full or on-line futures brokerage service. Traditionally, there is an expectation when trading commodity futures of achieving higher returns compared to shares or real estate, so successful investors can expect much higher returns compared to more conventional investment products. The process of trading commodities, as mentioned above, must be facilitated by the use of trading liquid, exchangeable, and standardized futures contracts, as it is not practical to trade the physical commodities. Futures contracts give the investor ease of use and the ability to buy or sell without delay. A futures contract is used to buy or sell a fixed quantity and quality of an underlying commodity, at a fixed date and price in the future. Futures contracts can be broken by simply offsetting the transaction. For example, if you buy one futures contract to open then you sell one futures contract to close that market position. The execution method of trading futures contracts is similar to trading physical shares, but futures contracts have an expiry date and are deliverable. Futures contracts have an expiry date and need to be occasionally rolled over from the current contract month to the following contract month. The reason is because the biggest advantage to trading commodity futures, for the private investor is the opportunity to legally short-sell these markets. Short-selling is the ability to sell commodity futures creating an open position in the expectation to buy-back at a later time to profit from a fall in the market. If you wish to trade the up-side of commodity futures, then it will simply be a buy-to-open and sell-to-close set of transactions similar to share trading. The commodity markets will always produce rising of falling trends, and with the abundance of information and trading opportunities available there is no reason for any investor to exclusively trade the share market when there is potential profits from trading commodity futures. The increased use of commodity trading vehicles in investment management has led practitionersto create investable commodity indices and products that offer unique performance opportunitiesfor investors in physical commodities. As is true for stock and bond performance, as well as investment in managed futures and hedge fund products, commodity-based products have avariety of uses. Besidesbeing a source of information on cash commodity and futurescommodity market trends, they are used as performance benchmarks for evaluation
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ofcommodity trading advisors and provide a historical track recorduseful in developing assetallocation strategies. However, the investor benefits of commodity or commodity-based productslie primarily in their ability to offer risk and return trade-offs that cannot be easily replicatedthrough other investment alternatives. Previous research that direct stock and bond investment offers little evidence of providing returns consistent withdirect commodity investment. Commodity-based firms may not be exposed to the risk of commodity price movement. Thus for investors, direct commodity investment may be the principal means by which one can obtain exposure to commodity price movements.

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The commodities that are traded in the market:

Gold Copper Silver Sugar Wheat Zeera Guar

Public Provident Fund:

Public Provident Fund, popularly known as PPF, is a savings cum tax saving instrument. It also serves as a retirement planning tool for many of those who do not have any structured pension plan covering them. The balances in PPF account cannot be attached by any authority normally.

How to Open Account

Public Provident Fund account can be opened at designated post offices throughout the country and at designated branches of Public Sector Banks throughout the country. Who can Open Account The account can be opened by an individual in his own name, on behalf of a minor of whom he is a guardian.

Tabs on Investment: Minimum deposit required in a PPF account is Rs. 500 in a financial year. Maximum deposit limit is Rs. 70,000 in a financial year. Maximum number of deposits is twelve in a financial year.

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Maturity The maturity period of the account is 15 years. Rate of interest is 8% compounded annually. One deposit with a minimum amount of Rs.500/- is mandatory in each financial year. The amount of deposit can be varied to suit the convenience of the account holders. The account holder can retain the account after maturity for any period without making any further deposits. In this case the account will continue to earn interest at normal rate as admissible till the account is closed. The account holder also has an option to extend the PPF account for any period in a block of 5 years at each time, after the maturity period of 15 years.

Lapse in Deposit:
If deposits are not made in a PPF account in any financial year, the account will be treated as discontinued. The discontinued account can be activated by payment of the minimum deposit of Rs.500/- with default fee of Rs.50/- for each defaulted year.

Premature Closure or Withdrawal

Premature closure of a PPF Account is not permissible except in case of death. Nominee/legal heir of PPF Account holder cannot continue the account after the death. Premature withdrawal is permissible in the 7th year of the account subject, to a limit of 50% of the amount at credit preceding three year balance. Thereafter one withdrawal in every year is permissible. Account Transfer The Account is transferable from one post Office / bank to another and from post Office to bank or from a bank to a post office.

Tax Benefits Deposits in PPF are eligible for rebate under section 80-C of Income Tax Act. The interest on deposits is totally tax free. Deposits are exempt from wealth tax.

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BONDS
A bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest (the coupon) and/or to repay the principal at a later date, termed maturity. It is a formal contract to repay borrowed money with interest at fixed intervals. Thus a bond is like a loan: the issuer is the borrower, the bond holder is the lender, and the coupon is the interest. Bonds provide the borrower with external funds to finance long-term investments, or, in the case of government bonds, to finance current expenditure. Certificates of deposit (CDs) or commercial paper are considered to be money market instruments and not bonds. Bonds must be repaid at fixed intervals over a period of time. Bonds are issued by public authorities, credit institutions, companies and supranational institutions in the primary markets. The most common process of issuing bonds is through underwriting. In underwriting, one or more securities firms or banks, forming a syndicate, buy an entire issue of bonds from an issuer and re-sell them to investors. The security firm takes the risk of being unable to sell on the issue to end investors. However government bonds are instead typically auction. The most important features of a bond are: Nominal, principal or face amount the amount on which the issuer pays interest, and which has to be repaid at the end.

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Issue price The price at which investors buy the bonds when they are first issued, which will typically be approximately equal to the nominal amount. The net proceeds that the issuer receives are thus the issue price, less issuance fees. Maturity date The date on which the issuer has to repay the nominal amount. As long as all payments have been made, the issuer has no more obligations to the bond holders after the maturity date. The length of time until the maturity date is often referred to as the term or tenor or maturity of a bond. The maturity can be any length of time, although debt securities with a term of less than one year are generally designated money market instruments rather than bonds. Most bonds have a term of up to thirty years. Some bonds have been issued with maturities of up to one hundred years, and some even do not mature at all. In early 2005, a market developed in euros for bonds with a maturity of fifty years. In the market for U.S. Treasury securities, there are three groups of bond maturities: short term (bills): maturities up to one year; medium term (notes): maturities between one and ten years; long term (bonds): maturities greater than ten years. Coupon The interest rate that the issuer pays to the bond holders. Usually this rate is fixed throughout the life of the bond. It can also vary with a money market index, such as LIBOR, or it can be even more exotic. The name coupon originates from thefact that in the past, physical bonds were
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issued which had coupons attached to them. On coupon dates the bond holder would give the coupon to a bank in exchange for the interest payment. The quality of the issue, which influences the probability that the bondholders will receive the amounts promised, at the due dates. This will depend on a whole range of factors. Indentures and Covenants An indenture is a formal debt agreement that establishes the terms of a bond issue, while covenants are the clauses of such an agreement. Covenants specify the rights of bondholders and the duties of issuers, such as actions that the issuer is obligated to perform or is prohibited from performing. In the U.S., federal and state securities and commercial laws apply to the enforcement of these agreements, which are construed by courts as contracts between issuers and bondholders. The terms may be changed only with great difficulty while the bonds are outstanding, with amendments to the governing document generally requiring approval by a majority (or super-majority) vote of the bondholders. High yield bonds are bonds that are rated below investment grade by the credit rating agencies. As these bonds are more risky than investment grade bonds, investors expect to earn a higher yield. These bonds are also called junk bonds. Coupon dates the dates on which the issuer pays the coupon to the bond holders. In the U.S. and also in the U.K. and Europe, most bonds are semi-annual, which means that they pay a coupon every six months. Optionality:Occasionally a bond may contain an embedded option; that is, it grants option-like features to the holder or the issuer: Callability Some bonds give the issuer the right to repay the bond before the maturity date on the call dates; see call option. These bonds are referred to as callable bonds. Most callable bonds allow the issuer to repay the bond at par. With some bonds, the issuer has to pay a premium, the so called call premium. This is mainly the case for high-yield bonds. These have very strict covenants, restricting the issuer in its operations. To be free from these covenants, the issuer can repay the bonds early, but only at a high cost.

Putability Some bonds give the holder the right to force the issuer to repay the bond before
the maturity date on the put dates; see put option. (Note: "Putable" denotes an embedded put option; "Puttable" denotes that it may be putted.) call dates and put datesthe dates on which callable and putable bonds can be redeemed early. There are four main categories. A Bermudan callable has several call dates, usually coinciding with coupon dates. A European callable has only one call date. This is a special case of a Bermudan callable.
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An American callable can be called at any time until the maturity date. A death put is an optional redemption feature on a debt instrument allowing the beneficiary of the estate of the deceased to put (sell) the bond (back to the issuer) in the event of the beneficiary's death or legal incapacitation. Also known as a "survivor's option". Sinking fund provision of the corporate bond indenture requires a certain portion of the issue to be retired periodically. The entire bond issue can be liquidated by the maturity date. If that is not the case, then the remainder is called balloon maturity. Issuers may either pay to trustees, which in turn call randomly selected bonds in the issue, or, alternatively, purchase bonds in open market, then return them to trustees.

DERIVATIVES:
As the name suggests, derivative is a financial instrument that offers a return based on the return of some other underlying asset. In this sense, its return is derived from another instrument. The definition states, a derivative's performance is based on the performance of an underlying asset. This underlying asset is often referred to simply as the underlying. Ittrades in a market in which buyers and sellers meet and decide on a price; the seller thendelivers the asset to the buyer and receives payment. The price for immediate purchase ofthe underlying asset is called the cash price or spot price. A derivative also has a defined and limited life: A derivative contract initiates on a certain date and terminates on a later date. Often the derivative's payoff is determined and/or made on the expiration date, although that is not always the case. In accordance with the usual rules of law, a derivative contract is an agreement between two parties in which each does something for the other. In other words, no money need change hands up front.

Types of Derivatives
Over-the-counter (OTC)derivatives are contracts that are traded (and privately negotiated) directly between two parties, without going through an exchange orother intermediary. Products such as swaps, forward rate agreements, and exoticoptions are almost

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always traded in this way. The OTC derivatives market is huge. According to the Bank for International Settlements, the total outstandingnotional amount is USD 298 trillion.

Exchange-traded derivativesare those derivatives products that are traded viaspecialized

Derivatives exchanges or other exchanges. A derivatives exchangeacts as an intermediary to all related transactions, and takes Initial margin fromboth sides of the trade to act as a guarantee.

What is Portfolio Management?

An investor considering in securities is faced with the problem of choosing from among alarge number of securities. His choice depends upon the risk return characteristics ofindividual securities. He would attempt to choose the most desirable securities and like toallocate his funds over this group of securities. Again he is faced with problem of decidingwhich securities to hold and how much to invest in each. The investor faces an infinitenumber of possible portfolios or groups of securities. The risk and return characteristics ofportfolios differ from those of individual securities combining to form a portfolio. The investor tries to choose the optimal portfolio taking into consideration the risk returncharacteristics of all possible portfolios.

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Phases of Portfolio Management

Security Analysis Portfolio Analysis Portfolio Selection Portfolio Revision Portfolio Evaluation

Security Analysis:
a) Fundamental analysis:
This analysis concentrates on the fundamental factorsaffecting the company such as EPS (Earning per share) of the company, the dividendpayout ratio, competition faced by the company, market share, quality of managementetc.

b) Technical analysis:
The past movement in the prices of shares is studied to identifytrends and patterns and then tries to predict the future price movement. Currentmarket price is compared withthe future predicted price to determine the mispricing.Technical analysis concentrates on price movements and ignores the fundamentals ofthe shares. c) Efficient market hypothesis: This is comparatively more recent approach. Thisapproach holds that market prices instantaneously and fully reflect all relevantavailable information. It means that the market prices will always be equal to theintrinsic value.

Portfolio Analysis
A portfolio is a group of securities held together as investment. It is an attempt tospread the risk allover. The return & risk of each portfolio has to be calculatedmathematically and expressed quantitatively. Portfolio analysis phase of portfoliomanagement consists of identifying the range of possible portfolios that can beconstituted from a given set of securities and calculating their risk for furtheranalysis.

Portfolio Selection
The goal of portfolio construction is to generate a portfolio that provides the highestreturns at a given level of risk. Harry Markowitz portfolio theory provides both theconceptual framework and the analytical tools for determining the optimal portfolioin a disciplined and objective way.
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Portfolio Revision
The investor/portfolio manager has to constantly monitor the portfolio to ensure thatit continues to be optimal. As the economy and financial markets are highly volatiledynamic changes take place almost daily. As time passes securities which were onceattractive may cease to be so. New securities with anticipation of high returns andlow risk may emerge.

Portfolio Evaluation
Portfolio evaluation is the process, which is concerned with assessing theperformance of the portfolio over a selected period of time in terms of return & risk.The evaluation provides the necessary feedback for better designing of portfolio thenext time around. Measurement of risk Risk refers to the possibility that the actual outcome of an investment will differ from theexpected outcome. In other words we can say that risk refers to variability or dispersion. Ifany investment is said to invariable itmeans that it is totally risk free. Whenever we calculatethe mean returns of an investment we also need to calculate the variability in the returns.

Variance and Standard Deviation: The most commonly used measures of risk in finance are variance or its square root thestandard deviation.

PORTFOLIO MANAGEMENT INCLUDES TWO TYPE OF ANALYSIS: 1. 2.

I. FUNDAMENTAL ANALYSIS TECHNICAL ANALYSIS FUNDAMENTAL ANALYSIS: A method of evaluating a security that entails attempting to measure its intrinsic value by examining related economic, financial and other qualitative and quantitative factors. Fundamental analysts attempt to study everything that can affect the security's value, including macroeconomic factors (like the overall economy and industry conditions) and company-specific factors (like financial condition and management).

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The end goal of performing fundamental analysis is to produce a value that an investor can compare with the security's current price, with the aim of figuring out what sort of position to take with that security (underpriced = buy, overpriced = sell or short).

This method of security analysis is considered to be the opposite of technical analysis. Fundamental analysis is about using real data to evaluate a security's value. Although most analysts use fundamental analysis to value stocks, this method of valuation can be used for just about any type of security.

For example, an investor can perform fundamental analysis on a bond's value by looking at economic factors, such as interest rates and the overall state of the economy, and information about the bond issuer, such as potential changes in credit ratings. For assessing stocks, this method uses revenues, earnings, future growth, return on equity, profit margins and otherdata to determine a company's underlying value andpotential for future growth. In terms of stocks, fundamental analysis focuses on thefinancial statements of the company being evaluated. One of the most famous and successful fundamental analysts is the Oracle of Omaha, Warren Buffett, who is well known for successfully employing fundamental analysis to pick securities. His abilities have turned him into a billionaire.

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II.

TECHNICAL ANALYSIS:

Technical analysis is a method of evaluating securities by analyzing the statistics generated by market activity, such as past prices anvil me. Technical analysts do not attempt to measure a security's intrinsic value, but instead use charts and other tools to identify patterns that can suggest future activity. Just as there are many investment styles on the fundamental side, there are also many different types of technical traders. Some rely on chart patterns; others use technical indicators and oscillators, and most use some combination of the two. In any case, technical analysts' exclusive use of historical price and volume data is what separates them from their fundamental counterparts. Unlike fundamental analysts, technical analysts don't care whether a stock is under valued - the only thing that matters is a security's past trading data and what information this data can provide about where the security might move in the future. The field of technical analysis is based on three assumptions: 1. The Market discounts everything. 2. Price moves in trends. 3. History tends to repeat itself. A major criticism of technical analysis is that it only considers price movement, ignoring the fundamental factors of the company. However, technical analysis assumes that, at any given time, a stock's price reflects everything that has or could affect the company - including fundamental factors. Technical analysts believe that the company's fundamentals, along with broader economic factors and market psychology, are all priced into the stock, removing the need to actually consider these factors separately. This only leaves the analysisof price movement, which technical theory views as a product of the supply and demand for a particular stock in the market.

Price Moves in Trends

In technical analysis, price movements are believed to follow trends. This means that after a trend has been established, the future price movement is more likely to be in the same direction as the trend than to be against it. Most technical trading strategies are based on this assumption.

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History Tends To Repeat Itself Another important idea in technical analysis is that history tends to repeat itself, mainly in terms of price movement. The repetitive nature of price movements is attributed to market psychology; in other words, market participants tend to provide a consistent reaction to similar market stimuli over time. Technical analysis uses chart patterns to analyze market movements and understand trends. Although many of these charts have been used for more than 100 years, they are still believed to be relevant because they illustrate patterns in price movements that often repeat themselves. Technical analysis can be used on any security with historical trading data. This includes stocks, futures and commodities, fixed-income securities, forex, etc. In this tutorial, we'll usually analyze stocks in our examples, but keep in mind that these concepts can be applied to any type of security. In fact, technical analysis is more frequently associated with commodities and forex, where the participants are predominantly traders. Now that you understand the philosophy behind technical analysis, we'll get into explaining how it really works. One of the best ways to understand what technical analysis is (and is not) is to compare it to fundamental analysis.

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FUNDAMENTAL AND TECHNICAL ANALYSIS OF DIFFERENT COMPANIES:

Reliance vision Scheme objective:

The fund seeks capital appreciation by investing in larger stocks with Good fundamentals and good long term prospects.

Composition:
Equity95.76% Debt Cash 0.00 % 4.24 %

Risk analysis:
Standard deviation Beta Sharpe ratio Alpha 6.97 0.92 0.70 1.81

Trailing returns:
3 MONTH 23.64 1 YEAR 79.64 3 YEAR 80.47 5 YEAR 62.11 SINCE LAUNCH 29.93

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Analysis:
Reliance vision is a good choice for those who want high returns but can deal with somedownside in bear markets. The fund was an average performer in the early part of its nineyear existence, but it has staged an impressive turnaround in the past few years. The fund hasnever shielded away from shuffling its portfolio between large caps and mid caps to boostPerformance. This strategy has worked especially well in the last two years. In 2002 it toppedthe category with a mind boggling 72 percent return against the category average of just 20percent. Year 2003 also proved to be an excellent year thanks to a higher exposure in banksan healthcare stocks.

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LARSON & TURBO:

VISION:
L&T shall be a professionally managed indian multinational, committed to total customer satisfaction and enhancing shareholder value. L&T ties shall be an innovative enterprenurial and empowered team constantly creating value and attaining global bench mark.

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SHAREHOLDERS OF THE COMPANY:

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STOCK MARKET DATA FOR THE YEAR OF 2010-2011

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RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY

DATA COLLETION METHOD

PRIMARY DATA

SECONDARY DATA

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PRIMARY DATA:
The data which are prepared from the main proposed and researcher or owner it is called primary source and the data collected from this source is called primary data. In the course of carrying out the project I have collected very few data from this source but they are more needed in carrying out the project work.The following data has been collected from this source like DELHI & N.C.R market.

METHOD OF PRIMARY DATA: TELEPHONE SURVEY INTERVIEW QUESTIONNAIRE

SECONDARY DATA:
The data which is collected from the persons, private research agencies etc are called secondary sources most of the data in my project has been collected from secondary source as the data is only available to them and other parties I have find most convenient source and collected from them. The data collected from this source are the past records and it is used to analysis.

METHODS OF SECONDARY DATA:

INTERNET LIBRARY JOURNAL NEWSPAPER

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SAMPLING PLAN
1. SAMPLING UNIT: A Sampling unit may be geographical one such as state, district, village, etc. or a construction unit such as house, flat, etc. or it may be a social unit such as family, club, school, etc. or it may be an individual. The researcher will have to decide one or more of such units that he has to study.

In my project sampling unit is:

STUDENTS SELF EMPLOYED SERVICE MAN OLD AGE PEOPLE

2. SAMPLING SIZE: In my research sampling size is 100.

3. SAMPLING PROCEDURE: In this project we used non probability technique of sampling. In this procedure first we decide from where we get our sample easily like Nehru place after that we survey these areas as our sample size is 100 we find 40 respondents were interested in on line trading, 60 respondents were not interested in online trading.

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Questionnaire

Name Occupation Contact No Email id : :

1. Do you know about the following Financial Instrument?

o o o o o o o o o o Mutual Fund Yes No Bond Yes No Insurance Yes No Equity Shares Yes No Fixed Deposits Yes No Govt. Securities Yes No Real Estate Yes No IPO Yes No Gold Yes No If any other please specify...

2. How do you get information regarding these Financial Instrument? o Advertisement

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o o o o

Company Sales force Friends / Relatives Magazines /Newspaper If any other please specify .

3. Please rate the Financial Instruments as per your Preference.

More preferred Mutual fund Insurance Equity Shares Bonds Fixed Deposits Govt.securities Real estate IPOs Gold Moderate Less preferred

4.What is your age?

15-20 21-40 41-50 51-60 60 above

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5. What are the factors which you consider while investing in any Financial Instrument?
o o o o o o o Return (capital appreciation) Tax Saving Liquidity Regular income flow Safety Risk If any other please specify.

6. On what basis you will invest in any particular Financial Instrument? o o o o o o Past Performance Portfolio Fund Manager Fundamental/Technical Analysis Market Sentiment If any other please specify

7. How will you invest your money in any Financial Instrument?

o o o o o Yourself Through any stock broking company. Please specify name.. Sub broker/ Agents Through Banks If any other please specify..

8. In what type of Financial Instrument you like to invest?

o o o o o o Equity based Debt based Balanced Fund Hybrid Fund ELSS (equity linked saving scheme) If any other please specify

9. What is your annual income? 1lac to 3lac 3lac to 5lac 5lac to 10lac more than 10 lacs

10. How much of your money you invest in any Financial Instrument? o 10% to 20%
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o o o o

20% to 30% 30% to 50% More than 50% If any other please specify ..

11. How long you prefer to keep your money in any Financial Instrument? o o o o o Less than 6 months 6 months to 1 year 1 year to 3 year More than 3 years If any other please specify

12. How much return you expect from any Financial Instrument? o o o o o 10% to 20% 20% to 30% 30% to 50% More than 50% If any other please specify ..

13. Will you invest your money for saving the Tax in any Financial Instrument? Yes No

14. Are you satisfied with your investment decision, Please rate? Highly satisfied Satisfied Less satisfied No satisfaction

15. Any other comments....................

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ANALYSIS

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ANALYSIS OF QUESTINNAIRE

Do you know about the following financial instruments?

100 80 60 40 20 0 GOVT SECU REAL ESTATE IPO GOLD YES NO Column1

The sample size consists of 100 respondents and out of which almost all the people are fully aware about investment avenues like gold and fixed deposits and almost 95 are aware about equity shares and mutual funds.

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 How do you get information about the following investment avenues?

INFORMATION
ADVERTISEMENT EXECUTIVE FRIENDS MAGAZINES

Out of the 100 respondents about 50% of them get the information from advertisements on the television and internet and the rest from the magazines, company sales executives and friends and relatives. Rate the following according to your preference?
90 80 70 60 50 40 30 20 10 0

MORE PREFERRED MODERATE LESS PREFERRED

Out of the 100 respondents asked the most preferred financial instrument is fixed deposits and the then the rest like equity shares with 70 % and insurance.

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 What is your age?

AGE(%)
24 20
20-30 31-40

6 12

41-50 51-60

38

60

Out of the respondents that were surveyed the maximum were of the age group of 31-40
What are the factors that you consider while investing in any financial instrument?
60 50 40 30 20 10 0 RETURN TAX SAVING LIQUIDITY REGULAR INCOME SAFETY Column1 Column2 Column3

Out of the respondents 50% were of the opinion that return and safety are the main reasons behind their investment decisions.

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 On what basis you invest in any particular financial instrument?

35 30 25 20 15 10 5 0

Column2 Column1 Series 1

The respondents were mostly of the opinion that portfolio is the most important factor before investing and then fundamental analysis done by them or by the financial advisor and then the other factors.

How will you invest your money in any financial instrument?

HOW DO YOU INVEST

5 15
BROKER SUB BROKER

20

60

AGENTS BANKS

Most of the respondents surveyed that they mostly invest their money through a broker and then through sub brokers and agents.

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 What is your annual income?

INCOME
15% 58%
1-3LAKHS 3-5LAKHS 5-10LAKHS MORE THAN10LAKHS

22%

Out the total respondents around 60 %were in the income group of 1- 3lakhs and 22% in the 35lakhs bracket.

How much of your money you invest in financial instruments?

60 50 40 Column1 30 20 10 0 10%to20% 20%to30% 30%to50% MORE THAN 50% Column2 Column3

Most of the respondents surveyed were mostly those people who invest 10 to 30 % of their money in these instruments.

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 How long do you prefer to keep your money invested?

70 60 50 40 30 20 10 0 6 MONTHS 1 YEAR 1TO 3 YEAR 3 TO 5 YEAR Column1

Out of the 100 respondents mostly were of the view that they invested there for a money at least for a period of 1year to 3 years

How much return do you expect from your investments?

Column1
50 45 40 35 30 25 20 15 10 5 0 10 TO 20% 20 TO 30% 30 TO 50% MORE THAN 50%

Column1

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CONCLUSION
After studying & analyzing different Stocks the following conclusions can bemade: Winning with stocks means performing at least as well as a major market indexover the long haul. If one can sidestep the common investor mistakes, then one hastaken the first and biggest step in the right direction. Diversified stock portfolios have offered superior long term inflation protection.Equities are especially important today with people living longer and retiring early. To understand stock funds, one needs to be familiar with the characteristics of thedifferent types of companies they hold. Portfolio managers have done a fairly good job in generating positive returns. It maylead to gain investors confidence. Thus over all good performance of the funds is asign of development in new era in capital market. On the basis of the analysis the performance of the schemes during the study periodcan be concluded to be good. Those who want to eliminate the risk element but still want to reap a better then itwould be advisable to go for debt or arbitrage schemes which ensure both safety andreturns.

Sothe future of Stock market in India is bright, because it meets investor s needs perfectly. This will give boost to Indian investors and will attract foreign investors also. It will lead to thegrowth of strong institutional framework that can support the capital markets in the longrun.

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BIBLIOGRAPHY
1. From the following websites: www.mutualfundsindia.com www.google.com www.valueresearchonline.com www.amfiindia.com www.investmentz.com 2Books and magazines Security analysis & Portfolio management by Prasanna Chandra Value research Portfolio Management by S. Kevin

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