[1]

CHAPTER I
INTRODUCTION










[2]

OBJECTIVES OF STUDY
Whenever a study is conducted, it is done on the basis of certain objectives in mind. A
successful completion of a project is based on the objective of the study that could be stated
as under:
1) To study the Comparative Analysis of Investment Options available in the Market on
the basis of customer buying preference.
2) To study the time period for which investments are generally made by investors in the
stock markets.
3) To study how comfortable people are investing in stock market.
4) To study the decision making criterions of those investing in stock markets.
5) To determine the most preferred investment avenues of those dealing in stock
markets.
RESEARCH METHODOLOGY
Research Methodology is a systematic way to solve the research problem. It may be
understood as a science of studying how research is done scientifically. The present study
was undertaken for knowing perception of investors towards equity products. This chapter
gives us the Research Design, Sampling plan, methods of data collection and tools used for
data analysis & interpretation.
The selection of the respondents was done on the basis of convenience sampling as the
universe under the coverage area of the study was too large.
METHOD OF DATA COLLECTION

I have pr epar ed a quest i onnai r e cont ai ni ng 11 ques t i ons . I per s onal l y
contacted 100 respondents to get the questionnaires filled. All possible efforts were made
together to remove biasness.


DATA ANALYSIS & INTERPRETATION

For the purpose of analyzing, raw data was summarized into charts and the results have been
carried out. The questions, which have alternative choices, were analyzed by taking
percentages. Proper analysis of the data has been made to get proper results.

STATISTICAL TOOLS

Percentage has been used to meet the objectives of the study.


[3]

LIMITATION

Some of the respondents were not candid enough to reveal all the required
information .They might have given inflated or wrong data.

The survey was conducted in Ranchi and on convenience sampling basis. So, this
could have brought biasness into the study.

However all the efforts were made to remove the biasness but it cannot be denied that
there is no possibility of individual biasness on the part of respondent.














[4]




CHAPTER II
COMPAY PROFILE
&
MY TRAINING MODULE AT
KOTAK SECURITIES LTD.










[5]


INDUSTRY PROFILE

The Indian securities market, considered one of the most promising emerging markets, is
among the top eight markets of the world. The Stock Exchange,Mumbai, which was
established in 1875 as The native share and stockbrokers association (a voluntary non-
profit making association), has evolved over the years into its present status as the premier
stock exchange in the country. At present 24 stock exchanges operate all over India. These
stock exchanges provide facilities for trading securities , securities markets provides a
common platform for transfer of funds from the person who has excess funds to those who
need them . Securities market is regulated by the Securities Exchange Board of India (SEBI).

COMPONENTS OF SECURITY MARKET:
The major components of the securities market are listed below:
Securities-shares,Bonds,Debentures, Futures, Options, Mutual Fund Units
Intermediaries-Brokers, Sub brokers, Custodians, Share transfer agent, Merchant
Bankers
Issuers of securities-Companies, Bodies corporate, Government, Financial
Institutions, Mutual funds, Banks
Investors-Individuals, Companies, Mutual funds, Financial Institutions, Foreign
Institutional Investors
Market Regulators-SEBI, RBI(to some extent), Department of Companies affairs
TYPES OF SECURITIES MARKET
In the contest of equity products, which this publication seeks to cover in depth, the following
markets could be defined:
Primary Market
Secondary Market
Derivatives Market


PRIMARY MARKET
Fresh issue of shares and other securities are affected though the primary market. It provides
issuers opportunity to issue securities, to raise resource to meet their requirements of
business. Equity issues can be affected at face value or at discount/premium. Issues at
discount are rare and almost unheard of issuers can issue the securities in domestic market
and/or international market through ADR/GDR/ECB route.
[6]

SECONDARY MARKET

Investors can buy and sell securities in secondary market from/to other investors. The
securities are traded, cleared and settled through intermediaries as per prescribed regulatory
framework under the supervision of the exchange and oversight of SEBI. The regulatory
framework has prohibited trading of securities outside the exchanges. There are 24 exchanges
(the capital stock exchanges, the latest in the list, is yet to commence trading) today
recognized over a period of time to enable investors across the length and breadth of the
country to access the market.

DERIVATIVES MARKET

Derivatives are contracts that are based on or derived from some underlying asset, reference
rate, or index. Most common financial derivatives are: forwards, futures, options and swaps.
Derivatives trading commenced in India in June 2000 after SEBI granted the final approval to
this effect in MAY 2000 for trading in index future,currently, the Indian market provides
equity derivatives of the following types:

Index futures two indices
Stock futures twenty nine stocks
Index options two indices
Stock options twenty nine stocks
















[7]

COMPANY PROFILE

ABOUT KOTAK SECURITIES
Kotak Securities established in 1994, it is a subsidiary of Kotak Mahindra Bank, which
services more than 13 lakh customer accounts. The firm has a wide network of more
than 1330 branches, franchisees representative offices, and satellite offices across 412
cities in India and offices in New York, London, Dubai, Mauritius and Singapore.

They process more than 400000 trades a day which is much higher than some of the
renowned international brokers.

The company is a corporate member of both The Bombay Stock Exchange (BSE) and
The National Stock Exchange of India (NSE). Our operations include stock broking
services for trading in stock markets through branches & internet and distribution of
various financial products including investments in IPOs, Mutual Funds and Currency
Derivatives. Currently, Kotak Securities is one of the largest broking houses in India
with substantial geographical reach to Asia Pacific, Europe, Middle East and America.
Kotak Securities Limited has Rs.1,015crore of Assets Under Management(AUM) as of
31
st
March, 2013.

INNOVATIONS
Kotak Securities has been the pioneers in providing many products and services which have
now become industry standards for stock broking in India. Some of them include:

Mobile stock trading application to keep track of your investments even on the go
Facility of Margin Finance to the customers for online stock trading
Investing in IPOs and Mutual Funds on the phone
SMS alerts before execution of depository transactions
AutoInvest - A systematic investing plan in Equities and Mutual funds
Provision of margin against securities automatically against shares in your Demat
account


[8]



MY TRAINING MODULE AT KOTAK SECURITIES

SALES:
1) Different products available
a) Offline
b) Online
2) Trinity A/c


OFFLINE:
In this form of trading in Kotak Securities the customer places the order by two ways:-
- The customer goes to the dealing room and asks dealers to place orders.
- The customer calls the dealer, asks the share quotes and market information
and places orders.
- The terminal used by Kotak securities for share trading is ODIN
- Account opening charges are Rs. 750 + initial investment amt.
ONLINE:
- It is a service provided through internet for purchase and sale of equity,
derivatives and commodities.
- Clients can do self trading through internet by software provided by
Kotak ( KEAT PRO X)
- Clients can also trade over the phone by calling to dealer asking the
rates of share and other important details.
- Kotak provides exclusive online tool to monitor what is happening in
the market and also investor can view gain/loss in real- time.
- Kotak Securities provides daily sms alerts, market pointers, periodical
research reports, stock recommendations etc.






[9]


In online there are two types of accounts

Trinity a/c & Non- Trinity a/c
Trinity a/c offers Kotak Mahindra saving bank account + demats a/c
+ trading a/c
Charges for opening trinity a/c isRs. 750 + initial investment
Non- trinity a/c offers demat a/c + trading a/c

Charges for opening non- trinity a/c is Rs. 1200 + initial investment.


Documentation:

Documents required for opening offline account are:-

- 2 photos
- Address proof (bank account statement )
- Identity proof
- PAN card
- 1 cheque if it is personalize cheque , 2 cheque for not personalized
cheque or if address proof is bank account statement
Documents required for opening online account are:-
- 3 photos
- Address proof
- Identity proof
- PAN card
- 1 chequeif it is personalize cheque, 2 cheques for not
personalized cheque or if address proof is bank account
statement.


KYC:
It is required for account opening through this process the norms for opening of account is
stated and it is done to know your clients by the kotak Securities.
Standard pitch:
It refers to how sales person get more referrals through calling to their clients
[10]


Prospecting:

Sales people generates a database from where they get their prospects

Taking appointment:

After the prospects are generated they call to them and take appointment.
Visit:
They visit to the prospects after taking the appointment and explain about the products and
investments in various products and features of investment into the market.
Follow ups:
After the a/c is opened by the client sales people continue to be connected and provide new
information related to existing products or new products.
KRISP leads and updating
It is the Kotak HR Information System Portal and all the leads and
Itsupdation is done with the portal. Through sales LMS fast self
Lead access, fast lead assess by follow up date, lead dashboard,
Viewleads; add leads and lead search are provided by KRISP.

Contract notes:
It is the note which gives the details of the trading with all thebrokerage and taxes.
Pre and post confirmation:Confirmation done by the dealer during the call of trading and after
the days trading session is over dealers call the clients and confirm about the transaction.



[11]




CHAPTER III

DATA ANALYSIS AND INTERPRETATION














[12]



DATA ANALYSIS AND INTERPRETATION





According to the survey conducted it has been seen that 15% of investors are female and 85%
of the investors are male.
So still in India maximum males who earn are interested in equity products on the other hand
female are now getting awareness about these products and their interest towards equity is
increasing.
85%
15%
Investor on the basis of sex
male female
[13]




We can see that the young generation is more influenced of equity products and prefer
investing in equity market as 43 % of investors age range from 20-30 yrs, 30% of investors
are within the age group of 30-40 yrs, 20% of them are in 40-50 age group and only 7 % are
in 50-60 age group which means older people are less awareness about the equity or they
dont want to invest in risky instrument like shares.


43%
30%
20%
7%
investor on the basis of age
20-30 30-40 40-50 50-60
[14]



Those who invest in equity are majorly from the service sector ( 78%) which shows their
hunger for earning and high return whereas 16% of investor are from business sector and 6%
of them where teachers who have investment in equity products.


As per survey done 30% of investors have their bank a/c in SBI. 20% of investors have in
other banks 14% of them have a/c in ICICI and only 10% have their bank a/c in HDFC bank
which shows that still investor believe that public sector banks are better option for keeping
their money safe.
16%
78%
6%
investors from various sectors
business service teacher
30%
14%
10%
26%
20%
In which bank do you have your
account?
Sbi icici hdfc kotak mahindra bank others
[15]


As per survey done 42% of respondent having Demat a/c and 58% of the respondent donot have
demat a/c.



As per data collected people those who are investor they invest as 65% of them invest their
below 20% of income in investment products , 27% of investors invest 20-30% of their
income , 8% of investor invest below 30-40% of their income and no one such investors who
invest 40% and above of their income as investment.
42%
58%
Do you have demat a/c?
yes no
65%
27%
8%
0%
How much % of your income you
invest?
<20% 20%-30% 30%-40% >40%
[16]



Investors annual income are as : 15% of investors have their annual income within the range
of less than 2 lakhs , 35% of them have annual income of 2-5 lakhs , 41% of investors have
annual income 5-10 lakhs and only 9 % of investor have annual income of above 10 lakhs. It
has been observed that investors falling in high range of annual income invest more % of
their income as investment.


84% of investor have maintained portfolio of their investment whereas on the other hand 16%
of investor doesnt have any portfolio.
15%
35%
41%
9%
what is your annual income?
<2 lakh 2-5 lakh 5-10 lakh >10 lakh
84%
16%
Do you have your portfolio for
investment?
yes no
[17]




43% of the respondents know about all financial instrument,19% of respondent know only
about fixed deposit,18% of respondents know about insurance only,13% of respondents know
about mutual fund,3% respondent knowing about govt. securities, only 2% respondents know
about real estate and 1% respondent know about commodities and 1% respondents know
bond/ipo also.





13%
1%
18%
19%
3%
2%
1%
43%
Do you know about the following financial
instrument?
mutual fund bond/ipo insurance fixed deposit
govt. securities real estate commodities above all
[18]




On the basis of survey 46% of the respondent get information regarding finanancial
instruments from their relatives,22% respondents from magazines/newspaper,30% of
respondents from advertisement and 2% from company sales force.

30%
2%
46%
22%
How do you get information
regarding these financial instuments?
advertisement company sales force
friends/relatives magazines/newspaper
[19]


As per the survey respondents most prefer to invest in bank fixed deposit , insurance,equity
market,mutual fund,real estate,commodities and debt market respectivily.




0
10
20
30
40
50
60
70
80
90
100
5
4
3
2
1
Ratings of Investment options as per the
customer's preference
[20]


Now purpose behind investment in equity are as follows 56% of investor invest for return
from equity , 9% invest for saving tax , 3% for liquidity, 11-11% for regular income flow
and safety and 11% respondents for future risk. So the major purpose behind investment in
equity is return


40% of respondents invest in any financial instrument on their past performance,32% on the
basis of fundamental and technical analysis,12% respondent invest as per their fund
manager,10% repondent invest on the basis of portfolio and 6% respondents invest as per
market sentiment.
56%
9%
3%
11%
11%
10%
what are the purpose while investing
in any financial instruments?
return(capital appreciation) tax-saving
liquidity regular income flow
safety risk
40%
10% 12%
32%
6%
on what basis you will invest in any
particular financial instrument?

past performance portfolio
fund manger fundamental/technical analysis
market senti ment
[21]



41% of respondents invest with the help of broker/sub brokers.44% of respondents invest
their own and 15% of the respondents invest their money with the help of banks.



As per survey 52% respondents invest for 6 months-1year, 27% invest for 1-3yrs,19% of
respondents invest their amount for more than 3 yrs and only 2% of respondents invest their
amount for less than 6 months.
44%
41%
15%
How do you invest your money in any
financial instrument?
yourself broker/sub-broker through banks
2%
52%
27%
19%
How long you prefer to keep your
money in any financial instrument?
<6 months 6 months-1yr 1-3yrs >3 yrs
[22]


So from survey it has been observed that at Ranchi investors have their trading a/c with: 51%
of investors have their trading a/c with Kotak Securities, 14% have trading a/c with Religare
and 13% of investors have trading a/c with icici direct,10% investors have trading a/c in
karvy and 12% trading a/c in others(indiabulls,skpsecurities,hdfcsecurities,share khan). So
can be observed that most of the market share in trading business is with Kotak Securities
because of its good services towards investors



43% of respondents would like to trade in equity,40% of the respondents trade in fixed
deposits,10% of respondents trade in derivatives and 7% of the respondents would like to
trade in commodities.
2% 10%
51%
13%
5%
4%
14%
1%
if you select a broking house then
which would you select?
share khan karvy koatak securities
icici direct Indiabulls skp securities
religare hdfc securities
43%
10%
7%
40%
which of these would you like to be
trading in?
equity derivatives commodities fixed deposits/bonds
[23]

.



Expected rate of return from equity that is preferred by investors are as follows : 80% of
investors have expectation of return within 10-20% , 16% of them want below 20-30% as rate
of return and 3% of investors have expectation for high return which is 50% and above.











80%
16%
1% 3%
How much return you expect from
any financial instrument?

10-20% 20-30% 30-50% >50%
[24]

COMPARISION BETWEEN DIFFERENT BROKING FIRMS
Kotak securities
ltd.
ICICI direct Religare Nalodia
Brokerage
Intraday 0.05% 0.05% 0.04% 0.05%
Delivery 0.05% 0.75% 0.40% 0.50%
Future option 0.05% 0.05% 0.40% 0.05%
Brokerage plans Available Available Available Available
Exchanges Nse/bse/f&o in
single platform
Available Available Available
Minimum
brokerage
1 paisa/scrip 10 paisa/scrip 1 paisa/scrip Rs. 23
paisa/scrip
A/c opening
charges
Rs.750 Rs.975 Rs.500 Stamp paper
charges
Live quotes Available Html
(refresh)/Ats-
rs. 5
Available Available
Research report Available Weekly picks Available Available
commodities online online online Offline
Online ipo Available Available Available Available
Software Yes, keat x pro No Yes, race lite
& race pro
Yes, trade
tiger
Online fund trade Available Available Available Available
Exposure
Intraday 5-6 times 8-15times 6 times 4-8 times
Delivery 1 times 1 times 1 times 4-8 times
Transfer banks Multiple
banks(kotak,hdfc,ic
ici,sbi etc.)

Products modules Online offline single Online offline Single
Amc charges Rs.360 Rs.500 Rs.250(waived
for 1 year)
Rs. 300



[25]


CHAPTER IV
CONCLUSIONS
&
RECOMENDATIONS



















[26]


CONCLUSIONS

In a nation with population of more than 1.2 billion, only a handful of them invest in
stock markets. It is a place for all those who dream of a better, financially comfortable
tomorrow as stock markets are obviously the perfect place to invest-especially when stock
markets can make them considerably rich in a short span of time, provided they play their
cards right. Therefore, stock markets is all about taking right decision at the right time in the
light of all the information available and keeping a close watch on various factors affecting
the stock markets. In Kotak Securities Ltd, I was able to learn their practical World of the
stock market. The market risk involved in share trading. The customers action when the
market price fluctuates. Stock market or capital market provides the industry with a lot of
capital needed by the industry, which leads to the growth of the industry and
economy as a whole. Hence the stock market plays animportant role in the development of
the industry.As more and more people are attracted towards share market because of the
returns they get, stock broking is growing dayby day.This study aimed to know the
perception of investors towards equity products in RANCHI..The study revealed that most of
the people dealing in stock markets are investors as against traders. This signifies that stock
markets, despite of its risky nature is a good investment avenue for investors who are
generally looking for short to medium term investment. The study was also aimed at finding
out the returns that people expect out of their funds invested in stock markets and most of the
answers ranged between 10%-20% which is a sheer sign of optimism among investors.The
study also made it clear that most people still are not much risk takers when it comes to
investing most part of their savings. They prefer to invest in one of the safest
investmentinstrument called fixed deposits, PPF, Mutual funds, and insurance.















[27]



RECOMMENDATIONS


Investors should undertake an analysis before investing into the stock market, as
most of the investors do not undertake any study before into a particular stock.

Before making an investment or trade on particular script the in-depth analysis
of that script is very important to yield more on our investment and to minimize the
amount of risk involved.

Company should create the awareness about investment insecurities among the
investors. They should visit the general public, businessmen, government offices and
other work places and guide them about the stock market. This will help the
company to large customer base.

Conduct seminars, workshops on capital markets, so that customers will come to
know about the risk and return involved in investing equity market.

For attracting the new customers it should increase the number of sales executives.

The company has to provide proper training to new investors to avoid losses. New
customers may not is having the sufficient knowledge of the basic concept.













[28]


SURVEY ON KOTAK SECURITIES
Hello,
My name is RAHUL RANJAN and I am from Institute of Management and Information Science
(IMIS),Bhubaneswar. This is a humble request from my side to fill up this questionnaire with respect
to a survey on KOTAK SECURITIES,RANCHI. This survey is done for a research project in our college
and privacy of your personal information will be maintained. Please do the needful, it will not take
more than 10 minutes. Thanking you for your co-operation.

Name:
Age:
Gender: _ Male _ Female
Nationality: Marital Status: Married Unmarried
Contact No. : Occupation:
Email-Id:

Q 1) In which bank do you have your account?
a) SBI b) ICICI c) HDFC d) Kotak Mahindra Bank e) Others
Q 2) Do you have DEMAT A/C or TRADING A/C ?
a) Yes b) No
Q 3) How much % of your income you invest?
a) Below 20 % b) 20 30 % c) 30 40 % d) 40 % and above

Q 4) Do you have your portfolio for investment?
a) Yes b) NO



[29]

Q5) Do you know about the following Financial Instrument?
a) Mutual Fund b) Equity market
c) Insurance d) Fixed Deposit
e) Govt. Securities f) Real estate
g) Commodities

Q6)How do you get information regarding these Financial Instruments?
a) Advertisement
b) Company Sales force
c) Friends/Relatives
d) Magazines/Newspaper

Q7)What are the purpose which you consider while investing in any Financial Instrument?
a) Return (capital appreciation)
b) Tax-saving
c) Liquidity
d) Regular Income Flow
e) Safety
f) Risk

Q8)How do you invest your money in any Financial Instrument?
a) Yourself
b) Broker/Sub-broker
C) Trough Banks



[30]

Q9)How long you prefer to keep your money in any Financial Instrument?
a) >6 month
b) 1year-2 Year
c) 3 year-4 year

Q10)If you select a broker or agent then which broker company would you select?
a) Share Khan b) Karvy
c) Kotak Securities d) ICICI Direct
e) Indiabulls f) SKP Securities
g) Religare h) HDFC Securities

Q11) How much return you expect from any Financial Instrument?
a) 10-20% b) 20-30%
c) 30-50% d) > 50%

ANY SUGGESSION :
.



THANK YOU





[31]


Bibliography

Bibliography
BOOKS REFERED:
RESEARCH METHODOLOGY BY DIPAK KUMAR BHATTACHARYYA

WEBSITIES:
WWW.NSE.COM
WWW.BSE.COM
WWW.MONEYCONTROL.COM
WWW.BLOOMBERG.COM
WWW.KOTAKSECURITIES.COM
WWW.GOOGLE.COM