APROJECT REPORTON:

STUDY OF SERVICES OF SHAREKHAN LTD TO INVESTOR IN PORTFOLIO MANAGEMENT IN JABALPUR"

(Submitted in partial fulfillment for the Degree of MBA to Rani DurgavatiVishwavidyalaya, Jabalpur)

SUBMITTED BY:GUNJAN SAXENAMBA IV Semester

GYAN GANGA INSTITUTE OF TECHNOLOGY AND SCIENCE NEAR BARGI HILLS, TILWARA ROAD, JABALPUR (MP)

TO WHOMSOEVER IT MAY CONCERN

This is to certify that this Miss. GunjanSaxena is the student of MBA IV Semester at Gyan Ganga Institute of Technology And Science, Jabalpur.I hereby certify that the project work on Study of service of Sharekhan Ltd to investors in portfolio management in Jabalpur is an original and genuine work carried out in the partial fulfilment of the requirement of masters of business administration for the year 2013- 2015. The information is true and original to the best of my knowledge.

DATE: DR ANIL KUMAR DHAGATPLACE: (DIRECTOR, MBA)

DECLARATION

I, GunjanSaxena, hereby declare that the dissertation work entitled Study of services of Sharekhan Ltd to investor in portfolio management in Jabalpur is carried out by me and submitted as under the requirement of Master of Business Administration degree from Gyan Ganga Institute of Technology and Science, for the session 2013-2015.I hereby authenticate that all the information furnished by me are true to my knowledge and are based on my own findings and as per the information furnished to me by Sharekhan Ltd.

DATE: GunjanSaxenaPLACE: (MBA,IV SEM) BATCH 2013-15

ACKNOWLEDGEMENT

I would like to thank my guide Mr. Anil KumarDhagat (Director of GGITS) for guiding me through my research project. His encouragement, time and effort were greatly appreciated.I would like to thank my family and all the faculty members at GGITS for supporting me during this project and providing me an opportunity to learn outside the classroom. It was truly a wonderful learning experience.Lastly but not the least, I would like to thank all the respondents who offered their valuable time and opinions towards the survey that helped me take out conclusions that lead to the completion of the project.

Gunjan Saxena(MBA, IV SEM)BATCH 2013-15

TABLE OF CONTENTEXECUTIVE SUMMAR

8

OBJECTIVE OF STUDY

10

INTRODUCTION12

COMPANY PROFILE

19

RESEARCH &METHODOLOGY

29

DATA ANALYSIS & INTERPRETATION

30

RECOMMENDATION& SUGGESTION

33

CONCLUSION

56

FINDING

54

ANNEXURE

58

BIBLOGRAPHY64

ExecutiveSummary

Executive Summary

Investing is both Arts and Science. Every Individual has their own specific financial need and expectation based on their risk taking capabilities, whereas some needs and expectation are universal. Therefore, we find that the scenario of the Stock Market is changing day by day hours by hours and minute by minute. The evaluation of financial planning has been increased through decades, which can be best seen in customers. Now a days investments have become very important part of income saving.

In order to keep the Investor safe from market fluctuation and make them profitable, Portfolio Management Services (PMS) is fast gaining Investment Option for the High Networth Individual (HNI).There is growing competition between brokerage firms in post reform India. For investor it is always difficult to decide which brokerage firm to choose.The research design is analytical in nature. A questionnaire was prepared and distributed to Investors. Theinvestors profile is based on the results of a questionnaire that theInvestors completed. The Sample consists of 20 investors fromvarious brokers premises. The target customers were Investorswho are trading in the stock market.

In order to identify the effectiveness of Sharekhan PMS services this Research is carried throughout the area of Hyderabad. At the time of investing money everyone look for the Risk factor involve in the Investment option. The Report is prepared on the basis of Research work done through the different Research Mythology the data is collected from both the source Primary sources which consist of Questionnaire and secondary data is collected from different sources such as Company website, Magazine and other sources.As the PMS services of Sharekhan Limited have the best result in its field .It has given 43.50% return in Trailing stops, 94.30%return in Nifty and 38.10% in Beta Portfolio which is the result when the Market was not doing well from last one year.In this project I have shown the details of financialplanning as well as wealth management so as to understandabout the customers needs and wants with respect to marketand how a clients portfolio can be designed and what factors aportfolio manager must consider for designing a portfolio.

Objective of the study

Objective Of The Study To know the concept of Portfolio Management. To know about the schemes offered by the differentinsurance companies, new IPOs, Mutual Funds. To know in depth about Insurance, Mutual Funds, Stock,Bonds etc.

To know about the awareness towards stock brokersand share market.

To study about the competitive position of Sharekhan Ltd in Competitive Market.

To study about the effectiveness & efficiency of Sharekhan Ltd in relation to its competitors

To study about whether people are satisfied with Sharekhan Services & Management System or not.

To study about the difficulties faced by persons while Trading in Sharekhan.

To study about the need of improvement in existing Trading system.

Scope of the StudyThe study of the Portfolio Management Services is helpful in the following areas. In today's complex financial environment, investors have unique needs which are derived from their risk appetite and financial goals. But regardless of this, every investor seeks to maximize his returns on investments without capital erosion. Portfolio Management Services (PMS) recognize this, and manage the investments professionally to achieve specific investment objectives, and not to forget, relieving the investors from the day to day hassles which investment require.

It is offers professional management of equity investment of the investor with an aim to deliver consistent return with an eye on risk. Identify the key Stock in each portfolio. To look out for new prospective customers who are willing to invest in PMS. To find out the Sharekhan, PMS services effectiveness in the current situation.It also covers the scenario of the Investment Philosophy of a Fund Manager.

Introduction

PORTFOLIO MANGEMNT SERVICES (PMS)Portfolio (finance) means a collection of investments held by an institution or a private individual. Holding a portfolio is often part of an investment and risk-limiting strategycalled diversification. By owning several assets, certain types of risk (in particular specific risk) can be reduced. There are also portfolios which are aimed at taking high risks theseare called concentrated portfolios.Investment management is the professional management of various securities (shares,bonds etc) and other assets (e.g. real estate), to meet specified investment goals for thebenefit of the investors. Investors may be institutions (insurance companies, pensionfunds, corporations etc.) or private investors (both directly via investment contracts and more commonly via collective investment schemes e.g. mutual funds).

The term asset management is often used to refer to the investment management ofcollective investments, whilst the more generic fund management may refer to all forms ofinstitutional investment as well as investment management for private investors. Investment managers who specialize in advisory or discretionary management on behalf of (normally wealthy) private investors may often refer to their services as wealthmanagement or portfolio management often within the context of so-called "privatebanking".

The provision of 'investment management services' includes elements of financial analysis, asset selection, stock selection, plan implementation and ongoing monitoring ofinvestments.Outside of the financial industry, the term "investment management" is often applied to investments other than financial instruments. Investments are often meant to includeprojects, brands, patents and many things other than stocks and bonds. Even in this case,the term implies that rigorous financial and economic analysis methods are used.

Needs of PMS

As in the current scenario the effectiveness of PMS is required. As the PMS gives investors periodically review their asset allocation across different assets as the portfolio can get skewed over a period of time. This can be largely due to appreciation / depreciation in the value of the investments.As the financial goals are diverse, the investment choicesalso need to be different to meet those needs. No singleinvestment is likely to meet all the needs, so one should keepsome money in bank deposits and / liquid funds to meet anyurgent need for cash and keep the balance in other investmentproducts/ schemes that would maximize the return andminimize the risk. Investment allocation can also changedepending on ones risk-return profile.

Objective of PMSThere are the following objective which is full filled by Portfolio Management Services.1. Safety Of Fund: -The investment should be preserved, not be lost,and should remain in the returnable position in cash or kind.

2. Marketability: -The investment made in securities should bemarketable that means, the securities must be listed and tradedin stock exchange so as to avoid difficulty in their encashment.

3. Liquidity: -The portfolio must consist of such securities,which could be en-cashed without any difficulty or involvementof time to meet urgent need for funds. Marketability ensuresliquidity to the portfolio.

4. Reasonable return: -The investment should earn a reasonable return toupkeep the declining value of money and be compatible withopportunity cost of the money in terms of current income in theform of interest or dividend.

5. Appreciation in Capital: - The money invested in portfolio should grow andresult into capital gains.

6. Tax planning: - Efficient portfolio management is concerned withcomposite tax planning covering income tax, capital gain tax,wealth tax and gift tax.

7. Minimize risk: -Risk avoidance and minimization of risk are important objective of portfolio management. Portfoliomanagers achieve these objectives by effective investmentplanning and periodical review of market, situation andeconomic environment affecting the financial market.

TECHNOQUES OF PORTFOLIO MANAGEMENT

Various types of portfolio require different techniques tobe adopted to achieve the desired objectives. Some of thetechniques followed in India by portfolio managers aresummarized below.

(1). Equity portfolio-Equity portfolio is affected by internal and externalfactors:

(a) Internal factors Pertain to the inner working of the particular company ofwhich equity shares are held. These factors generally include:

(1) Market value of shares(2) Book value of shares(3) Price earnings ratio (P/E ratio)(4) Dividend payout ratio

(b) External factors

(1) Government policies(2) Norms prescribed by institutions(3) Business environment(4) Trade cycles

(2). Equity stock analysis

The basic objective behind the analysis is to determinethe probable future value of the shares of the concernedcompany. It is carried out primarily fewer than two ways. :

(a) Earnings per share(b) Price earnings ratio

(A) Trend of earning: -

A higher price-earnings ratio discount expected profit growth. Conversely, a downward trend in earning results in a low price-earnings ratio to discount anticipated decrease in profits, price and dividend. Rising EPS causes appreciation in price of shares, which benefits investors in lower tax brackets? Such investors have not pay tax or to give lower rate tax on capital gains. Many institutional investor like stability and growthand support high EPS.

Growth of EPS is diluted when a company financesinternally its expansion program and offers new stock. EPS increase rapidly and result in higher P/E ratiowhen a company finances its expansion program from internalsources and borrowings without offering new stock.

(B) Quality of reported earning: -

Quality of reported earnings affects P/E ratio. The factorsthat affect the quality of reported earnings are as under:

Depreciation allowances: -Larger (Non Cash) deduction for depreciation providesmore funds to company to finance profitable expansion schemesinternally. This builds up future earning power of company.

Research and development outlets: -There is higher P/E ratio for a company, which carries R&D programs. R&D enhances profit earning strength of the company through increased future sales.

Inventory and other non-recurring type of profit: -Low cost inventory may be sold at higher price due toinflationary conditions among profit but such profit may notalways occur and hence low P/E ratio.

(C) Dividend policy: -Dividend policy is significant in affecting P/E ratio. Withhigher dividend ratio, equity price goes up and thus raises P/Eratio. Dividend rates are raised to push in share prices up.Dividend cover is calculated to find out the time the dividend isprotected, In terms of earnings. It is calculated as under:Dividend Cover = EPS / Dividend per Share

(D) Investors demand: -Demand from institutional investors for equity alsoenhances the P/E ratio.

(3) Quality of management: -

Investors decide about the ability and caliber ofmanagement and hold and dispose of equity academy. P/E ratiois more where a company is managed by reputed entrepreneurswith good past records of management performance.

Types of Portfolios

The different types of Portfolio which is carried by any Fund Manager to maximize profit and minimize losses are different as per their objectives .They are as follows.

Aggressive Portfolio:

Objective: Growth. This strategy might be appropriate for investors who seek High growth and who can tolerate wide fluctuations in market values, over the short term.

Growth Portfolio:

Objective: Growth. This strategy might be appropriate for investors who have a preference for growth and who can withstand significant fluctuations in market value.

Balanced Portfolio:

Objective: Capital appreciation and income. This strategy might be appropriate for investors who want the potential for capital appreciation and some growth, and who can withstand moderate fluctuations in market values

Conservative Portfolio:

Objective: Income and capital appreciation. This strategy may be appropriate for investors who want to preserve their capital and minimize fluctuations in market value.

Company Profile

Sharekhan is one of the leading retail brokerage of Citi Venture which is running successfully since 1922 in the country. Earlier it was the retail broking arm of the Mumbai-based SSKI Group, which has over eight decades of experience in the stock broking business. Share khanoffers its customers a wide range of equity related services including trade execution on BSE, NSE, Derivatives, depository services, online trading, investment advice etc.

Earlier with a legacy of more than 80 years in the stock markets, the SSKI group ventured into institutional broking and corporate finance 18 years ago. SSKI is one of the leading players in institutional broking and corporate finance activities. SSKI holds a sizeable portion of the market in each of these segments. SSKIs institutional broking arm accounts for 7% of the market for Foreign Institutional portfolio investment and 5% of all Domestic Institutional portfolio investment in the country.

It has 60 institutional clients spread over India, Far East, UK and US. Foreign Institutional Investors generate about 65% of the organizations revenue, with a daily turnover of over US$ 2 million. The content-rich and research oriented portal has stood out among its contemporaries because of its steadfast dedication to offering customers best-of-breed technology and superior market information. Theobjective has been to let customers make informeddecisions and to simplify the process of investing instocks

Missionof the Sharekhan isTo educate and empower the individual investor to make better investment decisions through QUALITY ADVICE INNOVATIVE PRODUCTS and SUPERIOR SERVICE.

WORK STRUCUTRE OF SHAREKHANSharekhan has always believed in investing in technology to build its business. The company has used some of the best-known names in the IT industry, like Sun Microsystems, Oracle, Microsoft, Cambridge Technologies, Nexgenix, Vignette, Verisign Financial Technologies India Ltd, Spider Software Pvt. Ltd. to build its trading engine and content. The Citi Venture holds a majority stake in the company. HSBC, Intel & Carlyle are the other investors.

On April 17, 2002 Sharekhan launched Speed Trade and Trade Tiger, are net-based executable application that emulates the broker terminals along with host of other information relevant to the Day Traders. This was for the first time that a net-based trading station of this caliber was offered to the traders. In the last six months SpeedTrade has become a de facto standard for the Day Trading community over the net. Sharekhans ground network includes over 700+ Shareshops in 130+ cities in India.

The firms online trading and investment site www.sharekhan.com - was launched on Feb 8, 2000. The site gives access to superior content and transaction facility to retail customers across the country. Known for its jargon-free, investor friendly language and high quality research, the site has a registered base of over 3 Lacs customers. The number of trading members currently stands at over 7 Lacs. While online trading currently accounts for just over 5 per cent of the daily trading instocks in India, Sharekhan alone accounts for 27 per cent of the volumes traded online.

The Corporate Finance section has a list of very prestigious clients and has many firsts to its credit, in terms of the size of deal, sector tapped etc. The group has placed over US$ 5 billion in private equity deals.Some of the clients include BPL Cellular Holding, Gujarat Pipavav, Essar, Hutchison, Planetasia, and Shoppers Stop.Finally, Sharekhan shifted hands and Citi venture get holds on it.

PRODUCT AND SERVICES OFFERD BY SHAREKHAN1- Equity Trading Platform (Online/Offline).

2- Commodities Trading Platform (Online/Offline).

3- Portfolio Management Service.

4- Mutual Fund Advisory and Distribution.

5- Insurance Distribution.

6-Forex

Benefits Of Sharekhan: Free Depository A/c Instant Cash Transfer Multiple Bank Option. Secure Order by Voice Tool Dial-n-Trade. Automated Portfolio to keep track of the value of your actual purchases. 24x7 Voice Tool access to your trading account. Personalized Price and Account Alerts delivered instantly to your Mobile Phone & E-mail address. Live Chat facility with Relationship Manager on Yahoo Messenger Special Personal Inbox for order and trade confirmations. On-line Customer Service via Web Chat. Enjoy Automated Portfolio. Buy or sell even single share Anytime Ordering.

Sharekhan offers the following products:-CLASSIC ACCOUNTThis is a User Friendly Product which allows the client to trade through website www.sharekhan.com and is suitable for the retail investors who is risk-averse and hence prefers to invest in stocks or who does not trade too frequently.

Features Online trading account for investing in Equity andDerivatives via www.sharekhan.com Live Terminal and Single terminal for NSE Cash, NSE F&O & BSE. Integration of On-line trading, Saving Bank and Demat Account. Instant cash transfer facility against purchase & sale of shares. Competitive transaction charges. Instant order and trade confirmation by E-mail. Streaming Quotes (Cash & Derivatives). Personalized market watch. Single screen interface for Cash and derivatives and more. Provision to enter price trigger and view the same online in market watch.

SPEEDTRADESPEEDTRADE is an internet-based software application that enables you to buy and sell in an instant. It is ideal for active traders and jobbers who transact frequently during days session to capitalize on intra-day price movement.

Features Instant order Execution and Confirmation. Single screen trading terminal for NSE Cash, NSE F&O & BSE. Technical Studies. Multiple Charting. Real-time streaming quotes, tic-by-tic charts. Market summary (Cost traded scrip, highest clue etc.) Hot keys similar to brokers terminal. Alerts and reminders. Back-up facility to place trades on Direct Phone lines. Live market debts.

DIAL-N-TRADEAlong with enabling access for trade online, the CLASSIC and SPEEDTRADE ACCOUNT also gives Dial-n-trade services. With this service, one can dial Sharekhans dedicated phone lines 1800-22-7500, 3970-7500. Beside this, Relationship Managers are always available on Office Phone and Mobile to resolve customer queries.

SHARE MOBILESharekhan had introduced Share Mobile, mobile based software where one can watch Stock Prices, Intra Day Charts, Research & Advice and Trading Calls live on the Mobile. (As per SEBI regulations, buying-sellingshares through a mobile phone are not yet permitted.)

PREPAID ACCOUNTCustomers pay Advance Brokerage on trading Account and enjoy uninterrupted trading in their Account. Beside this, great discount are also available (up to 50%) on brokerage.Prepaid Classic Account: - Rs. 2000Prepaid Speed trade Account: - Rs. 6000

IPO ON-LINECustomers can apply to all the forthcoming IPOs online. This is quite hassle-free, paperless and time saving. Simply allocate fund to IPO Account, Apply for the IPO and Sit Back & Relax.

Mutual Fund OnlineInvestors can apply to Mutual Funds of Reliance, Franklin Templeton Investments, ICICI Prudential, SBI, Birla, Sundaram, HDFC, DSP Merrill Lynch, PRINCIPAL and TATA with Sharekhan.

Zero Balance ICICI Saving AccountSharekhan had tied-up with ICICI bank for Zero Balance Account for Sharekhans Clients. Now their customers can have a Zero Balance Saving Account with ICICI Bank after your demat account creation with Sharekhan.

Sharekhan Portfolio Management Services

Sharekhan portfolio management service

Pro TechPro Prime

ProArbitrage

Pro PrimeProduct Approach Investment will be keeping in mind 3 investment tenets.1. Consistent, steady and sustainable returns.2. Margin of Safety3. Low Volatility

Product offering Pro Prime is the ideal for investors looking at steady and superior with low and medium risk appetite.The portfolio consists of a blend of quality blue chip and growth stocks ensuring a balanced portfolio with relatively medium risk profile.The portfolio constitutes of relatively large capitalization stocks, based on sector and themes which have medium to long term growth potential.Product Characteristics Bottom up stock selection In depth ,independent fundamental research High quality companies with relatively large capitalization Disciplined valuation approach applying multiple valuation measure. Medium to long term vision, resulting in low portfolio turnover.How to invest? Minimum Investment : 10 Lacs Lock in : 6 months Reporting: Access to website showing clients holding .Monthly reporting of portfolio holding /transaction. Charges: 2.5% pa AMC (Annual Maintenances Charges) fees charged every quarter ,0.5% brokerage ,20% profit sharing after 15% hurdle is crossed chargeable at the end of fiscal year.

Pro ArbitrageProduct ApproachAn opportunity lies in basis which is the difference between cash and future. Whenever basis is high we buy the stocks and sell the future to lock in difference .The difference is bound to be zero at expiry. Product Offered Cash future arbitrage:The product intends to spot low risk opportunities which will yield more than the normal low risk product .Whenever such opportunity is spotted stocks will be bought and to lock in the basis, future will be sold .This position will be liquated in the expiry or before that if the basis vanishes early .Similarly the scheme will move on from opportunity to opportunity.Product Characteristics Low Risk:This is relatively low risk product which can be compared with liquid funds issued by mutual funds.High return: Compared with other low risk products, this products offers an indicative post tax return of 8 to 10% plus.Product Details Minimum Investment:Rs.1 Crore Lock in :6 months Reporting: Fortnightly for portfolio Net worth, Monthly reporting pf portfolio Holding /transaction. Charges: 0.035% brokerage for future ,0.07% for delivery

Pro TechProtech using the knowledge of technique analysis and the power of depravities markets to identify trading opportunities in the market .The protech line of the product is designed around various risk /reward /volatility profiles for the different kind of investment needs.Product Approach Better performance is possible from superior market timing and from picking stocks before inflation points in their trading cycles .Linear return are possible from having hedged/ sell market positions in downtrends .Absolute return are targeted by focusing on finding trading opportunities & not out performance of an index.Product offered 1. Nifty Thirty :Nifty futures will be bought and sold on the basis of an automated trading system generated calls to go long/short. The exposure will never exceed the value of portfolio i.e. no leveraging; but allows us to be short /hedged in Nifty in falling market therefore allowing the client to earn irrespective of the market direction.

2. Beta Portfolio :Positional trading opportunities are identified in the future segment based on technical analysis .Inflection points in the momentum cycles are identified to go long /short on stock/index futures with 1-2 months time horizon .The idea is to generate the best possible return in the medium term irrespective of the direction of the market without really leveraging beyond the portfolio value. Risk protection is done based on stop losses on daily closing prices.

3. Star Nifty:Swing trading technique and Dow theory is used to identify short term reversal levels for Nifty futures and ride with trend both on the long and short side .This return can be earned in bull and bear market .Stop and reverse means to reverse ones position from long to short or vice a versa at the reversal levels simultaneously .The exposure never exceeds value of portfolio i.e. there is no leveraging.

4. Trailing Stops. Momentum trading techniques are used to spot short term momentum of 5-10 days in stocks and stocks /index futures .Trailing stop loss method of risk management or profit protection is used tolower the portfolio volatility and maximize return .Trading opportunities are exposed both on the long side and the short side as the market demands to get the best of both upward and downward trends.Product Characteristics Using swing based index trading systems stop and reverse .trend following and momentum trading technique. Nifty based products for low impact cost and low product volatility Both long and short strategies to earn returns even in falling market. Trading in future market to allow for active risk protection using trailing stop losses

How to invest? Minimum : Rs.10 Lacs Lock in : 6 months Reporting: Fortnightly reporting of portfolio Net Worth, monthly reporting of portfolio Holding /Transaction. Charges: 0% AMC (Annual Maintenance Charges), 0.05% brokerage for derivatives, 20% profit sharing on booked profit quarterly basis

Research Methodology

RESEARCH DESISGN OF THE STUDYThis report is based on primary , however primary datacollection was given more importance since it is overhearing factor in attitude studies.One of the most important users of research methodology is that it helps in identifyingthe problem, collecting, analysing the required information data and providing analternative solution to the problem .It also helps in collecting the vital information thatis required by the top management to assist them for the better decision making bothday to day decision and critical ones.

The study consists of analysis about Investors Perception about the Portfolio Management Services offered by Sharekhan Limited. For the purpose of the study 50 customers were picked up at random and their views solicited on different parameters.

The methodology adopted includes

Questionnaire Discussions with the concerned

SOURCES OF DATA

Primary data: Questionnaire

SAMPLING PLAN

Sampling:

Since Sharekhan Limited has many segments I selected Portfolio Management Services (PMS) segment as per my profile to do market research. 100% coverage was difficult within the limited period of time. Hence sampling survey method was adopted for the purpose of the study.

Population:(Universe) customers & non consumers of Sharekhan limited

Sampling size:

A sample of fifty was chosen for the purpose of the study. Sample consisted of Investor as based on their Income and Profession as well as Educational Background.

Sampling Methods:

Probability sampling requires complete knowledge about all sampling units in the universe. Due to time constraint non-probability sampling was chosen for the study.

Sampling procedure:From large number of customers & non consumers sample lot were randomly picked up by me.

Field Study:

Directly approached respondents by the following strategies

Tele-calling Clients References Promotional Activities Database provided by the Sharekhan Limited website

Data Analysis&Interpretation

Question:1Do you know about the Investment Option available?

ANALYSIS:This chart shows the awareness among the people of Jabalpur regarding various investment options available in the market. Most of the respondent shows the interest toward the investment option but some of theremainingpeople take his/her residential property as an investment.This is not an investment because of it is not create any profit for the owner.

Question:2What is the basic purpose of your Investments?

ANALYSIS:

As per the above chart, it is found 75%peoples are interested in liquidity, returns, and tax benefits .And remaining 25% are interested in capital appreciations, risk covering, and others. In the entire Respondent it is common that this time everyone is looking for minimizing the risk and maximizing Their profit with the short time of period.

Question: 3What is the most important factor you consider at the time of Investment?

ANALYSIS:

This analysis gives the clear idea that most of the Investors considered the market factor as

around 12% for Risk and 23% Return, but most important common things in all are that they

are even ready for taking both Risk and Return in around 65% investor. So, that they can

achieve high rate of return behalf of high risk.

Question:4From which option you will get the best returns?

ANALYSIS:Most of the respondents say they will get more returns in Share Market. Since Share Market is said to be the best place to invest to get more returns. The risk in the investment is also high. Similarly, the Investor are more Interested in Investing their money in Mutual Fund Schemes as that is also very important financial product due to its nature of minimizing risk andmaximizing the profit. As the commodities market is doing well from last few months so Investor also prefer to invest their money in Commodities Market basically in GOLD nowadays. Moreover, even who dont want to take Risk they are looking for investing in Fixed Deposit for long period of time.

QUESTION:5Investing in PMS is far safer than Investing in Mutual Fund. Do you agree?

ANALYSIS:In the above graphs its clear that 24% of respondent out of hundred feel that investing theirmoney in Mutual Fund Scheme are far safer than Investing in PMS. this is because of lack of proper information about the Portfolio management services. As the basis is same for the mutual fund and PMS but the investment pattern is totally different from each other and which depends upon different risk factor available in both the Financial Products.

Question:6How much you carry the expectation in Rise of your Income from Investments?

ANALYSIS:This analysis shows the optimism is shown in the attitude of the respondents. The confidence was appreciable with which they are looking forward to a rise in their investments. Major part of the sample feels that the rise would be of around 15%. Only 8% of the respondents wereconfident enough to expect a rise of upto 35%.As all the respondents were also considering the Risk factor

Question:7If you invested in Share Market, what has been your experience?

ANALYSIS:20% of the respondents have invested in Share market and received satisfactory returns, 40%

of the respondents have not at all invested in Share Market. Some of the investors face

problems due to less knowledge about the market. Some of the respondents dont have

complete overview of the happenings and invest their money in wrong shares which result in

Loss. This is the reason most of the respondents prefer Portfolio Management Services to

tradenow a days, which gives the Investor the clear idea when is the right time to buy and

right time to sell the shares which is recommended by their Fund Manger.

Question:8

How do you trade in Share Market?

ANALYSIS:

As we know that Share market is totally based on psychological parameters of Investors, which changed as per the market condition, but at the same time the around 45% investor trade on the basis of speculation and 31% depend upon Investment option Bonds, Mutual Funds etc.Moreover, the now a days Hedging is most common derivatives tools which is used by the Investor to get more return from the Market ,this is mostly used in the Commodities Market.

Question:9

How do you manage your Portfolio?

ANALYSIS:

About 35%of the respondents say they themselves manage their portfolio and 22% of the

respondentare depend on friend advice but other all of the respondents say they depends on

the security company for portfolio Management. the respondents prefer PMS of the company

because they dont have to keep a close eye on their investment; they get all the information

time to time from their Fund Manager.

Moreover, talking about the Sharekhan PMS services they are far satisfied with the Protechand Prop rime Performance during last year. They are satisfied with the quick and active services of Sharekhan customer services where, they get the updated knowledge about the scrip detail everyday from their Fund Manager.

Question:10

Are you using Portfolio Management services (PMS) of Sharekhan?

ANALYSIS:

As talking about the Investment option, in most of clients it was common that they know about the Option but as the PMS of Sharekhan have different Product offering, Product Characteristics and the Investment amount is also different this makes the clients to think differently. It is found that 56% of Sharekhan client where using PMS services as for their Investment Option.

Question:11

The motive for making investment in capital market

ANALYSIS:

This analysis shows that most of the investor motive to get the high rate of interest by

investment in capital market. And some of the investors motive for tax planning and utilised

their capital for continuous rotation in the market. But remaining other investor have the

proper knowledge of the market so that their purpose for investment to get more and more

capital gain from their investment.

Question:12The factor they consider while selecting a sharekhan?

ANALYSIS:As the above research shows the reasons and the parameters on which investor lie on Sharekhan and they do the trade.Among the respondents 35% respondents do the trade with the company due to its research Report, 28% based on Brokerage Rate whereas 22 % are happy with its Services.Last but not the least, 15% respondents are depends upon the tips of Sharekhan which gives them idea where to invest and when to invest.At the time of research what I found is that still Sharekhan need to make the clients more knowledge about their PMS product

Question:13Which portfolio type you preferred?

ANALYSIS:The above analysis shows, in which portfolio the investor like to deal more in PMS. As 45% investor likes to go for Equity Portfolio and 28% with Balanced Portfolio, whereas around 27% investor like to, go for Debt Portfolio.

Question:14How was your experience about Portfolio Management services (PMS) of Sharekhan Limited?

ANALYSIS:In the above analysis it is clear that the Investor have the good and the bad experience both with the Sharekhan PMS services.In this current scenario 52% of the Investor earned, whereas around 18% have to suffer losses in the market. Similarly 30% of the Respondents are there in Breakeven Point (BEP), where no loss and no profit.

Question:15Does Sharekhan Limited keep it PMS process Transparent?

ANALYSIS:The above analysis is talking about the Sharekhan Transparency of their PMS services. In the respondents 64% said that they get all the information about their scrip buying and selling information day by day, where as 36% of respondents are not satisfied with the PMS information and Transparency because they dont get any type of extra services in PMS as they were saying.

Question:16Do you recommend sharekhan PMS to others?

ANALYSIS:The above analysis shows the Investor perception toward the Sharekhan PMS as on the basis of their good and bad experience with Sharekhan limited. Among the respondents 86% respondents were agree to recommend the PMS of Sharekhan to their peers, relatives etc.

Question:17What would you grade to customer relationship management of shareholder?

ANALYSIS:This analysis shows the customer satisfaction towards the customer relationship management of shareholder. According to the grade it can be easy to analyze the need for changes in the system or not .so, it is clearly shows that the 52% of customer are fully satisfied with CRM. And 32% of customer feel good with the service. Other have some issues or bad experience with lack of proper knowledge. Time managing etc.

Question:18What gradewould you give to the customer objection handling management of sharekhan?

ANALYSIS:This analysis shows the satisfaction of the customer towards there queries and getting the feasible solution of their objection. So , 50% of the customer are fully satisfied with their solutions and 30% feel happy with the sharekhan management.12% are neutral and 8% customer not satisfied because of lack of coordination between the customer and management of sharekhan.

Question:19Are you satisfied with the result of your complaints at sharekhan?

ANALYSIS:Above chart shows the satisfaction level of the customer towards their complaints and it is clearly understood by the chart that 53%customers are completely satisfied with the sharekhan.28% are satisfied and 14% are neutral with their views .But 5% customer are not satisfied because of loss or lack of knowledge.

Question:20Which service of taking customer complaints is best at sharekhan?

ANALYSIS:Most of the customer used the toll free number for contacting the executive of sharekhan for their complaints. Now a days Email also having a source of taking customer complaints in thesharekhan. But some customer dont believe in such type of service so they can prefer personal visit in the company for their issues and complaints.

CONCULSION AND SUGGESTIONS

OBSERVATION AND FINDING About 85% Respondents knows about the Investment Option, because remaining 15% take his /her residential property as Investment, but in actual it not an investment philosophy carries that all the Investment does not create any profit for the owner.

More than 75% Investors are investing their money for Liquidity, Return and Tax benefits. At the time of Investment the Investors basically considered the both Risk and Return in more %age around 65%. As among all Investment Option for Investor the most important area to get more return is share around 22%after that Mutual Fund and other comes into existence. More than 76% of Investors feels that PMS is less risky than investing money in Mutual Funds. As expected return from the Market more than 48% respondents expect the rise in Income more than 15%, 32% respondents are expecting between 15-25% return.

As the experience from the Market more than 34% Investor had lose their money during the concerned year, whereas 20% respondents have got satisfied return. About 45% respondents do the Trade in the Market with Derivatives Tools Speculation compare to 24% through Hedging .And the rest 31% trade their money in Investments. Around 57% residents manage their Portfolio through the different company whereas 43%Investor manage their portfolio themselves. The most important reasons for doing trade with Sharekhan limited isSharekhan Research Department than its Brokerage rate Structure. Out of hundred respondents 56% respondents are using Sharekhan PMS services. Investors preferred more than 45% equity Portfolio, 28%Balanceed Portfolio and about 27% Debt Portfolio with Sharekhan PMS. About 52% Respondents earned through Sharekhan PMS product, whereas 18% investor faced loses also. More than 63% Investor are happy with the Transparency system of Sharekhan limited. As based on the good and bad experience with Sharekhan limited around 86% are ready to recommended the PMS of Sharekhan to their peers, relatives etc.LIMITATION OF THE PROJECT As only Jabalpur was dealt in the survey so it does not represent the view of the total Indian market. The sample size was restricted with hundred respondents. There was lack of time on the part of respondents. The survey was carried through questionnaire andthe questions were based on perception. There may be biasness in information by marketparticipant. Complete data was not available due to companyprivacy and secrecy. Some people were not willing to disclose the investment profile.

CONCLUSION AND SUGGESTIONSOn the basis of the study it is found that Sharekhan Ltd is better services provider than the other stockbrokers because of their timely research and personalized advice on what stocks to buy and sell. Sharekhan Ltd. provides the facility of Trade tiger as well as relationship manager facility for encouragement and protects the interest of the investors. It also provides the information through the internet and mobile alerts that what IPOs are coming in the market and it also provides its research on the future prospect of the IPO.We can conclude the following with above analysis.

Sharekhan Ltd has better Portfolio Management services than Other Companies

It keeps its process more transparent.

Itgives more returns to its investors.

It charges are less than other portfolio Management Services

Itprovides daily updates about the stocks information.

Investors are looking for those investment options where they get maximum returnswith less returns.

Market is becoming complex & it means that the individual investor will not havethe time to play stock game on his own.

People are not so much ware aware about the Investment option available in the Market.

Suggestions

The company should also organize seminars and similar activities to enhance the knowledge of prospective and existing customers, so that they feel more comfortable while investing in the stock market. Investors must feel safe about their money invested.

Investors accounts must be more transparent as compared to other companies.

Sharekhan limited must try to promote more its Portfolio Management Services throughAdvertisements. Sharekhan needs to improve more its Customer Services

There is need to change in lock in period in all three PMS i.e .Protech, Proprime, Pro Arbitrage.

ANNEXUREQUESTIONNAIRE

NAME.AGE OCCUPATION... PHONE NO..................................

1. Do you know about the Investments Option available? YES NO2. What is the basic purpose of your Investments? Liquidity Return Tax Benefits Risk Covering Capital Appreciation Others 3. What is the most important factor you consider at the time of Investment? Risk Return Both 4. From which option you will get the best returns? Mutual Funds Shares Commodities Market Bond Fixed Deposits Property Others

5. Investing in PMS is far safer than Investing in Mutual Fund. Do you agree? Yes No

6. How much you carry the expectation in Rise of your Income from Investments? Upto 15% 15-25% 25-35% More than 35%

7. If you invested in Share Market, what has been your experience?

Satisfactory Return Burned Finger Unsatisfactory Results No

8. How do you trade in Share Market? Hedging Speculation Investment 9. How do you manage your Portfolio? On Your Own Expert Opinion On Friend Advice Broker Advice Other 10. Are you using Portfolio Management services (PMS) of Sharekhan? Yes

No

11. The motive for making investment in capital market? Regular Income In The Form Of Dividend/ Interest Tax Planning Capital Gain

12. The factor they consider while selecting a sharekhan? Research Brokerage Services Investments Tips13. Which Portfolio Type you preferred? Equity

Debt

Balanced

14. How was your experience about Portfolio Management services (PMS) of Sharekhan Limited? Earned

Faced Loss

No profit No loss

15. Does Sharekhan Limited keep it PMS process Transparent? Yes

No

16. Do you recommend Sharekhan PMS to others? Yes No17. What would you grade to customer relationship management of sharekhan? A B C D

18. What would you grade to customer objection handling management of sharekhan ? A B C D E19. Are you satisfied with result of your complaints at sharekhan? Completely Satisfied Satisfied In Between Not Satisfied20. Which service of taking customer complaints is best at sharekhan? Toll Free Phone Calls Email Visiting Personal Visit

BibliographyREFERENCES www.sharekha.com www.sebi.gov.in www.moneycontrol.com www.karvy.com www.valueresarchonline.com www.yahoofinance.com www.theeconomist.com www.nseindia.com www.bseindia.com

Book Referred

Value guide by Sharekhan Investors Eyes by Sharekhan Business world. The economist

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