“COMPETITIVE ANALYSIS OF WEALTH MANAGEMENT IN INDIA WITH SPECIAL FOCUS ON ONLINE TRADING”

“COMPETITIVE ANALYSIS OF WEALTH MANAGEMENT IN

INDIA WITH SPECIAL FOCUS ON ONLINE TRADING”

Presented by:- Rana ratnakar MBA 3rd sem

COMPANY PROFILE

M SOLUTIONS

OM SAI ASOCIATES

KANNLITE MANAGEMENT SERVICES

ABOUT M SOLUTIONS

India first truly client oriented company 110 channel partners across in India Revenues over 50 crores Market capitalization of over 150 crores Over 50% of revenues flow from our broking

division Over 300 employees belonging to over 25

different nationalities 7 stakeholders The best employer in india and among the top

20 in india economic times survey

INTRODUCTION OF WEALTH MANAGEMET

“Wealth management as a concept originated in the year 1990’s In u.s.”

  “Essentialy, it is a investment advisory concerning

financial planning that provides individual with private banking, asset management , taxtation advisory, portfolio management.Among the above services, portfolio management is genric and the rest are highly custmize.”

  “A professional service which is the combination of

financial/investment advice, accounting/tax services, and legal/estate planning for one fee.”

HELPING TO MAKE WORK OPTIONAL

Making money is difficult. Keeping it is even harder. Effective management of your savings is the most important element of the wealth management process. It is the foundation upon which all our other services are based.

WEALTH MANAGEMENT SERVICE OBJECTIVES

“your success is our success. Our

purpose is to create a financial solution that will benefit you and

your family, according to your individual goals and aspirations.”

Our objectives are to:

A) ORGANIZE AND SIMPLIFY YOUR FINANCIAL LIFE

B) PROVIDE YOU WITH EXCEPTIONAL INVESTMENT MANAGEMENT

C) DEVISE A PLAN TO GUIDE YOU THROUGH THE NEXT FIVE TO 10 YEARS D) HELP YOU BUILD WEALTH THAT IS INDEPENDENT OF YOUR BUSINESS INCOME

E) PROVIDE THE GUIDANCE THAT ALLOWS YOU TO STICK TO THE LONG-TERM STRATEGY F) HELP YOU AVOID COSTLY MISTAKES G) HELP YOU GAIN FINANCIAL PEACE OF MIND

H) FINANCIALLY EMPOWER YOU TO PURSUE YOUR MOST IMPORTANT LIFE GOALS AND SPEND MORE TIME DOING WHAT YOU LOVE .

RESEARCH METHODOLOGY:

 “AN EXPLORATORY RESEARCH HAS BEEN CARRIED OUT TO STUDY THE BEHAVIOR OF CUSTOMERS. TO MEET THE RESEARCH OBJECTIVE A RESEARCH FORMATS, TO COLLECT INFORMATION FROM THE RESPONDENTS WAS MADE & THE INFORMATION WAS COLLECTED THROUGH INDIVIDUAL INTERACTION WITH THE CLIENT. THE DATA WAS COLLECTED USING SCIENTIFIC METHOD AS PER THE QUESTIONNAIRE SAMPLE ELEMENTS HAVE BEEN CHOSEN BY OBSERVATION TECHNIQUES.”

RESEARCH DESIGN

RESEARCH WAS CONDUCTED TO KNOW THE SCOPE OF ON LINE TRADING, SO IT WAS DESIGNED AS ANALYTICAL.

1) SAMPLE DESIGN: DATA FOR THIS STUDY HAS BEEN COLLECTED FROM PRIMARY SOURCES. FOR THE COLLECTION OF DATA CONVENIENCE SAMPLING HAS BEEN USED.

2) SAMPLE SIZE: SAMPLE SIZE FOR THE STUDY WAS 100 FOR THE UNIVERSE OF THE URBAN AREA, DEHRADUN.

PRIMARY DATA: PRIMARY DATA WAS COLLECTED WITH THE HELP OF:

1) QUESTIONNAIRE

2) PERSONAL INTERVIEWS

INDIAN STOCK MARKET OVERVIEW 

The Bombay stock exchanges (BSE) and the

National Stock Exchange of India Ltd (NSE) are the two primary exchange in India. In addition, the BSE and NSE have established themselves as the two leading exchanges.

BOMBAY STOCK EXCHANGE (BSE)

> The Bombay Stock Exchange is the oldest exchange in Asia.

It traces its history to the 1850s, when four Gujarati and one Parsi stockbroker would gather under banyan trees in front of Mumbai's Town Hall.

> The location of these meetings changed many times, as the number of brokers constantly increased. The group eventually moved to Dalal Street in 1874 and in 1875 became an official organization known as 'The Native Share & Stock Brokers Association'. In 1956, the BSE became the first stock exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act.

> The Bombay Stock Exchange developed the BSE SENSEX in 1986, giving the BSE a means to measure overall performance of the exchange.

NATIONAL STOCK EXCHANGE (NSE)

The National Stock Exchange of India was set up

by Government of India on the recommendation of Pherwani Committee in 1991.Promoted by leading Financial institutions essentially led by IDBI at the behest of the Government of India, it was incorporated in November 1992 as a tax-paying company. In April 1993, it was recognized as a stock exchange under the [[Securities Contracts (Regulation) Act], 1956.

NIFTY

NIFTY is an Index computed from performance of  top stocks from different sectors listed on NSE (National stock exchange). NIFTY consists of 50 companies from 24 different sectors. NIFTY stands for National Stock Exchange’s Fifty.   The companies which form index of  NIFTY may vary from time to time based on many factors considered by NSE.  NIFTY is for NSE similarly  SENSEX is for BSE

 

HOW M-SOLL DEALS WITH EQUITY TRADING AND THE SERVICES PROVIDED TO THE CUSTOMERS?

M-soll Provides best services to its customers for equity trading in comparison to other Financial Securities Companies.

  These services are as follows- 

Online trading facilities with Express trade terminal. Express trade terminal is wave based software. Client

can easily download the terminal through M-soll web site. No extra charges are taken for the use of this terminal. Through this terminal/software you execute your order within 2 seconds. In this terminal we get both NSE&BSE On-line at same time. And the clients can do trading in both NSE&BSE at the same time.

INDIVIDUAL CLIENT:

Demat A/c opening charges: Rs 500/- (maintenance Charges Rs 250/-)

Trading A/c free for life time Trading through offline or website. (www.M-soll.com) NSE & BSE both are online. Live applet for watching prices & trading purposes.

BROKERAGE

Cash brokerage: - Delivery: 0.50%, Intraday: 0.05% (Negotiable)

Exposure: -4 to10 times (For Intraday)

2 times (For Delivery)

F&O Brokerage: - Buy & Sell 0.05% (Negotiable) 

COMPETITIVE ANALYSIS

The Major competitors are:

• 5paisa.com

• Kotak Securities.com

• IndiaBulls.com

• ICICI Direct.com

• HDFC sec.com

5PAISA.COM

Company Background India infoline was founded in 1995 and was positioned as a

research firm. In 2000 e-broking was started under the brand name of 5 paisa.com. Apart from offering online trading in stock market the company offers mutual funds online.

It also acts as a distributor of various financial services i.e. Company Fixed Deposits, Insurance.

Online Account Types  Investor Terminal : Investors / Students Trader Terminal : Day Traders

 

Kotak securities

Company Background

A Kotak security is the retail arm of Kotak securities. Kotak Securities limited is a joint venture between Kotak Mahindra Bank and Goldman Sachs

  Online Account Types  •Free Way: Flat Rs 999 Cover Charge p.m, 0.03% per transaction•Cash Expressway: Spot payment, additional 0.5% charges 

INDIABULLS

Company Background  IndiaBulls is a retail financial services company present in 70

locations covering 62 cities. It offers a full range of financial services

and Products ranging from Equities to Insurance. 450 + Relationship Managers who act as personal financial advisors

Online Account Type •Signature Account: Plain Vanilla Account with focus on Equity

Analysis. The equity analysis is a paid service even for A/c holders. 

ICICI DIRECT.COM

Company Background ICICI Web Trade Limited (IWTL) maintains ICICIdirect.com. IWTL is

an Affiliate of ICICI Bank Limited and the Website is owned by ICICI

BankLimited

Account Types

•ICICI Direct e-invest Account: Plain Vanilla Account with focus on 2 in 1 advantage. Differentiated in services within the account.

1. Cash on spot2. Margin Plus

HDFC Securities

Company Background

HDFC Securities Ltd, is promoted by the HDFC Bank, HDFC and Chase Capital Partners and their associates. Pioneers in setting up Dial-a-share services with the largest team of Tele-brokers.

Online Account Type

HDFC Online Trading A/c : Plain Vanilla Account with focus on 3 in 1 advantage

FINDINGS OF COMPETITIVE ANALYSIS

M-soll has the unique product in the market related to the expectations desired by the customers.

  The company is innovative and uses the latest technology to

improve the product to fulfill the demands of the customers

M-soll strategy is to satisfy the customer in terms of their need by providing them timely services and knowledge about the trade in equities, mutual funds by giving tips for investment advises

Brokerage charged by the company is less and competitively better according to the services provided to the customers

LIMITATIONS OF COMPETITIVE ANALYSIS

1) Services of competitors:

2) No proper assurance of right information:

3) Lack of awareness of Stock market:

4) Mostly people comfortable with traditional brokers

5) Inaccurate Leads:

6) Misleading concepts

MARKET DATA RESEARCH ANALYSIS

1. Tick the age category to which you belong?

Age Percentage No. of respondent

20-29 10% 10

30-39 15% 15

40-49 50% 50

50-59 10% 10

Above 60 15%% 15

DATA INTERPRETATION :-

As the graph shows that most of the respondents belong upto the age group of 40-49 with 50% of the total share whereas other respondensts belonging to the other age groups constitue of merely 20%.

2. PLEASE TICK THE GENDER TO WHICH YOU BELONG?

(A)Male 82 (B) Female 18

Male, 82

Female, 18

Male

Female

DATA INTERPRETATION:-

As the graph shows that most of the respondents belong to the male category i.e. 82% male ; 18% female.

 

3. TICK THE OCCUPATION TO WHICH YOU BELONG ?

Occupation Percentage No. of RespondentServiceman 70% 70

Business 20% 20

Professional 2% 2

Student 5% 5

Housewife 3% 3

Others 0 0

DATA INTERPRETATION:-

The table and graph indicates that most of respondents are serviceman constituing 70% share whereas business people and students are next in the cadre with low percentage such as 20% and 5% respectively, which means that regular income holder are more prone towards faster and easy trading.

4. PLEASE TICK YOUR MONTHLY INCOME ?

Monthly Income Percentage No. of Respondent

Up to 10000 2% 2

10000-15000 5%5

15000-20000 13% 13

20000-25000 20% 20

Above 25000 60% 60

DATA INTERPRETATION:-

In this graph we can see that most of the people belong to income category of above 25000 with 60% share where as the lowest percantage (2%) of people belong to the income group upto 10000.

5. PLEASE TICK WHERE DO YOU INVEST ?

Area of Invest Percentage No. of Respodent

Fixed Deposit with banks 23%

23

Mutual Funds 7% 7

Stocks 50% 50

Insurance 8% 8

Real State 8% 8

Govt. Bonds 4% 4

Fixed Deposit with banks35%

Mutual Funds7%

Stocks27%

Insurance8%

Real State18%

Govt. Bonds5%

DATA INTERPRETATION

Above chart shows that most of the people are interested to invest their money in fixed deposits due to low risk and whereas very few people are interested in Govt. Bonds due to its low rate of return

 

6. PLEASE RANK THE FACTORS THAT INFLUENCES YOUR DECISIONS TO OPEN A DMAT ACCOUNT ?

Factor influencing for opening DMAT A/c Percentage

No. of Respodent

Proximity to Trading Firm 12%

6

Facility Provided by the trading firm 48%

24

Relationship with manager 14%

7

Advertisement 6% 3Recommendation by friend 10%

5

Brand Name 8% 4Branch Timing 2% 1

Data Interpretation:-  With the help of this graph we came to understand that facility provided by the trading firm is the very crucial aspect which influences the customer’s attitude towards opening DEMAT A/C with the highest percentage constituting almost 48% share. In spite of this we can observe that relationship with manager get IInd higher priority factor which influence opening of DMAT A/C is 14%. 

LEARNINGS 

I learned to apply a lot of theoretical knowledge into practical use.

As my work included the sales, I learnt some of the ground rules of selling my product.

I also learnt to handle the month end stress when it is time to complete the targets.

I also came to know the various work culture rules and ethics that are required to be followed in the organization.

I also found that it is very important to build a relationship with a client as it brings more business

CONCLUSION

Wealth management Wealth managers are beginning to investigate innovative

segmentation methods to manage the changing client profile. Over the next 20 years wealth managers will done their segmentation methods.

“A professional service which is the combination of financial/investment advice, accounting/tax services,

and legal/estate planning .”

Online trading In spite of these optimistic numbers, online trading in India is

at a very nascent stage (about 2 percent of total traded volumes) compared to countries like South Korea (60 percent), US (40 percent) and UK (20 percent).

THANK YOU

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