Professional Documents
Culture Documents
REPORT
ON
“RISK TAKING PATTERN OF DIFFERENT
CUSTOMER”
with special reference to kotak securities
ltd.
1
OM KOTHARI INSTITUTE OF
MANAGEMENT &
RESEARCH
(Affiliated to Rajasthan Technical University, Kota, Approved by All
India Council for Technical Education-Government of India and
Sponsored by Om Kothari Foundation, Kota)
CERTIFICATE
The Training Project Report has been completed under the guidance of “Asst.
Prof Anupama Sharma This is to certify that Mr. Dikshant Sharma a
student of MBA II Year at” of OKIMR and is as per norms and guidelines
provided.
Kota
2
Date:
OM KOTHARI INSTITUTE OF
MANAGEMENT &
RESEARCH
(Affiliated to Rajasthan Technical University, Kota, Approved by All
India Council for Technical Education-Government of India and
Sponsored by Om Kothari Foundation, Kota)
CERTIFICATE
The Training Project Report has been evaluated and viva-voce conducted by
the undersigned panel of examiners. The project has been found
satisfactory/unsatisfactory and is recommended/not recommended for
acceptance.
Prof. Prof.
Internal Examiner External examiner
3
A-1, Special I.P.I.A. Jhalawar Road, Kota-324005
(: 0744-2490878, 2490402, E-mail: oki_mr@rediffmail.com
Fax: 0744-2438069
PREFACE
During summer training students understand the real Modus Operandi of the
concerned areas of interest in the real life situation.
The summer training process is endeavourer to convert all that is virtual into a
real image i.e. it helps in applying all the theoretical concepts into real
corporate world.
4
It helps in developing the managerial skill using, which we can convert,
abstract into language and convey the thoughts and ideas from our mind to
others.
In this regard I have undergone Summer Training of 45 days at the renowned and
prestigious Kotak Securities, the subsidiary company of Kotak Mahindra Group
ACKNOWLEDGEMENT
The reporter of this project is grateful for the comments, suggestion, and
assistance given by a number of people. In particular I would like to thank, Mr.
Dheeraj Purohit (Regional Head), Mr. Rajendra Sharma (Branch Head) that he
always holds a lamp for me and I have done my summer internship under the
light of that lamp.
And one more name is there. Who is the real director of this movie, which I
have completed in these two months? The name is Mr. Praveen Singh
(Company guide).
5
As I have completed my internship in Kotak Securities Ltd. Which is the
India’s leading broking house and there I have got good and positive support
from each and every employee of the group.
Finally I would like to say thanks to all those who helped me directly or
indirectly………THANKS.
DECLARATION
DIKSHANT SHARMA
MBA-II (SEM-III)
OKIM&R KOTA
6
List of Tables:
List of Figures:
7
Comprehensive features of kotak securities ltd.
List of Charts:
REPORT FLOW
Certificate
Preface
Acknowledgement
Declaration
List of Tables, Figures & Charts
8
Kotak – Group structure
Brand & Logo
Vision
Milestones – Journey so far
Think Investment Think Kotak – Kotak advantages
Kotak Securities – Leadership in Indian Markets
Products and Services – Kotak Securities
Demat account and its facilities
Facilities offered in a Demat Account
Dematerialization of Securities
Rematerialization of Securities
Benefits of opening Demat Account
Advantages of Scrip-Less Trading
Convenient Process of Transmission
About Customers
• About Competitors of Kotak Securities Ltd
• SWOT analysis of Kotak Securities Ltd.
9
Sampling unit
Research procedure
Limitation
Chapter 7. Recommendation
10
ORGANIZATION AT A GLANCE
Genesis of Kotak:
11
When I first visited the USA many years ago, I was fascinated by the
imposing presence of financial giants such as JP Morgan, Goldman Sachs,
Merrill Lunch and Morgan Stanley.
They started Small, took their names from their founders and went to become
global financial institutions that far outlived the founders.
I believed then, as I do now, that one day, India and Indian Financial
Institutions would have their place in the sun.
- Uday Kotak
OVERVIEW
12
insurance, to investment banking, the group caters to the financial needs of
individuals and corporates.
The group has a net worth of over Rs.34 billion, employs over 12,300 people
in its various businesses and has a distribution network of branches,
franchisees, representative offices and satellite offices across 320 cities and
towns in India and offices in New York, London, Dubai, Mauritius and
Singapore.
13
BRAND & LOGO
14
The symbol of Infinite Ka reflects our global Indian personality.
The Ka is uniquely Indian while its curve forms the infinity sign, which is
universal.
One of the basic tenets of economics is that man’s needs are unlimited.
VISION
15
A globally Indian financial services brand.
16
Think Investment Think Kotak
17
Flat hierarchy and easy accessibility to senior management.
Young and energetic workforce.
Strong emphasis on learning and development.
Trust: Kotak Securities Ltd. comes to the investor from Kotak Mahindra Group
the organization trusted by millions of Indian
18
LEADERSHIP IN INDIAN MARKET
Kotak Securities Ltd. is India's leading stock broking house with a market
share over 9 % as on 30th June 2007. Kotak Securities Ltd. has been the
largest in IPO distribution.
The accolades that Kotak Securities has been graced with include:
19
Best Domestic Equity house: 2004, 2002-2003
IFR Asia's India Equity House Award for the year 2004.
Best Domestic Investment Bank and the Best Equity House: 2006
20
PRODUCTS AND SERVICES
A product for every need: Kotak Securities Ltd. is the INDIA’S LEADING
STOCK BROKING HOUSE, which allows investor to invest in Equity,
Derivatives (Futures and Options), Mutual funds, IPO’s Margin Trading,
Depository Services and other financial products.
1. Equiy:
Margin Trading: To help you invest in your dream stocks, Kotak Securities
Ltd. brings to you Margin Trading facility of up to 50%*. In other words, you
can buy scrip’s by paying a part of the total sum, while the balance will be
funded by Kotak Securities.
2. Derivatives:
21
3. Mutual Funds:
4. IPO’s:
Kotak Securities enables clients to invest wisely in the potential and lucrative
IPO’s.
5. Depository Services:
22
DEMAT ACCOUNT AND ITS FACILITIES
At the time of opening an account, the investor has to sign an agreement with
the DP in the depository’s prescribed standard agreement, which details the
rights and duties of both the investor and the DP.
For this purpose, the investor has to submit a proof of identity and proof of
address along with the prescribed account opening form.
23
FACILITIES OFFERED IN A DEMAT ACCOUNT
Dematerialization of securities:
The investor has to ensure that before the certificates are handed over
to the DP for demat, they are defaced by marking “Surrendered for
Dematerialization” on the face of the certificates. After this, the registrar of
the companies takes the existing physical certificates of the investor back and
destroy them and an equivalent number of securities are credited in electronic
form in investor’s demat account.
24
Process of Dematerialization:
The DP verifies the signature of all account holders and the order of the
names in the demat account and the certificates to ensure that the
pattern of holding is same.
Once the investor gets a credit in the account, the scrip will be reflected as
free balance in his/her demat account statement.
25
Dematerialization Process
Investor
Depository Participant
Intima
tes to
Depository
26
Rematerialization of Securities:
into physical paper share certificates. If an investor wishes to get back his/her
securities in physical form, all he/she has to do is to request his/her DP for
rematerialization of the same. The DP will forward his/her request to NSDL,
after verifying that for the necessary balance. NSDL in turn will intimate the
registrar who will print the certificates and dispatch the same to you.
Process of Rematerialization
The DP will intimate the remat request to the depository after proper
verification and checking.
The depository will confirm this remat request and finally forward its
details to the Registrar.
The Registrar will update its records and will print and issue a new
scrip certificate.
27
Rematerialization Process
Investor
Depository Participant
Certificates
Dispatching
Depository
Registrar
28
Confirmation of Remat Request
29
• Any number of securities can be transferred/delivered with one delivery
order. Therefore, paperwork and signing of multiple transfer forms is
done away with.
• Each share is a market lot for the purpose of transactions - so no odd lot
problem.
30
ADVANTAGES OF SCRIP-LESS TRADING
31
CONVENIENT PROCESS OF TRANSMISSION.
Shareholders can buy or sell just one share and not market lots.
32
Proper infrastructural facilities are not available.
A DP handling the account and a broker selling the shares are two
different identities.
Inability to trade a holding via any brokers other than the broker
administering the account.
33
CUSTOMER
Kotak Securities Ltd. a leading stock broking house of India is working as per
the guidelines provided by the SEBI (security exchange board of India) where
in any body can open a demat account but he/ she should have PAN card
which is being issued by the INCOME TAX DEPARTMENT of India.
Although this is being come into existence by this year but Kotak Securities
Ltd. is the only company, which is following it strictly.
This is the tradition at Kotak Securities Ltd. that they are walking only and
strictly on the way, which is being set by the authorities.
Kotak Securities Ltd. is mainly known with Kotak Mahindra group and this is
the second largest bank of India.
In Kota mainly the people from big corporate are the regular customer of
Kotak Securities Ltd.
34
Kota is emerging as one of the biggest science institute’s hub of India where
in the people who are working in these institutes have great amount to invest.
COMPETITOR’S
This is not the thing which makes worry (Kotak Securities) Kota. But
the thing, which is kind of, threats for the Kotak Securities Ltd. Kota
especially that is the brokerage criteria. Because we have a fix criteria of
brokerage where in broker’s negotiates according to the customer this is what
I feel after spending almost one and half month in Kotak Securities Ltd.
For this we are targeting the premium customer’s and making them aware of
offline as well as giving them information about IPO scam which is being
happened a month before. And this is the right thing to do at this time because
except Kotak Securities Ltd. every body is under scrutiny although many of
them got the clean chit. But still we can use it as a competitive strategy.
35
MAJOR COMPETITORS OF KOTAK SECURITIES
ICICI direct.com
Share khan
Karvy Broking
Suresh rathi
Anand rathi
Nirmal bang
Bonanza Online
Religare
Zuari Investment
India Infoline
36
SWOT ANALYSIS OF KOTAK SECURITIES LTD.
STRENGTHS:
• Credibility of Kotak Mahindra group in market.
• Loyal and lasting customer relationship.
• Wide Marketing network consisting Rawatbhata, Bundi, Baran and Kota
itself.
• Features of our products and services
• Quality of product is up to global standards.
• Strategic thinking.
• Global thinking and acting.
WEAKNESS:
• High dependency on corporate customers.
• Lack of manpower as far as NST is concerned.
• Lack of sales promotion schemes.
• Kotak Securities Online.
OPPURTUNITY:
Sensex is doing well now days.
DLF is about to come with its IPO and that will be the biggest IPO till now
and IPO is real strength.
Kotak Mahindra is the associate bank of DLF.
37
THREAT:
Entry of R-TRADE in market.
Sensex is affecting by a number of activities other than business
38
INTRODUCTION OF THE PROJECT TITLE
This project is related to the risk taking abilities or habits of different customer’s.
And I have done this research in the city like Kota. Kota is having customer with
all types. The member’s from each group is interested in share trading this is what
I have felt after completing the summer internship consisting of four months.
Before joining Kotak Securities Ltd., I personally feel that this product is only and
only for those who have great knowledge about Share market and mainly about
offline trading. But scenario is quite a bit different from what I felt.
My project is having a clear goal like I have tried to find out the habits of taking
risk of customer’s. This thing will surely helps Kotak Securities Ltd. Kota in
finding the new customer’s. This project will make easy the targeting activity.
The problem, which Kotak Securities Ltd. is facing, that they are not targeting
customers with an idea. Because they don’t have any base data which tells them on
what time which type of customer should be targeted by them?
The conclusion of this project will provide a data and that data will help web trade
Kota in planning the things. I have done this project mainly in the reference of
Kota so this data will only and only help in capturing the Kota market.
39
The problem of targeting customer with right time and right place is being
occurred because the market of Kota is changing day by day according to sensex.
If we talk about competition in Kota it is on its peek and mainly the competition is
between the online broker’s and in offline share trading companies.
Many people having their demat account in the depository of offline broker’s
(Anandrathi, Anagram, and Zuari) & online brokers (Reliance Money, ICICI).
40
RISK
One cannot talk about returns without talking about risk, because investment
decisions always involve a trade-off between risk and return.
Risk can define as the chance that the actual outcome from an investment
will differ from the expected outcome.
Being an investor or trader a person always have two type of risk that is as
follows.
Diversifiable risk:
• Company strike.
• Bankruptcy of a major supplier.
• Death of a key company officer.
41
• Unexpected entry of a new competitor.
To know the effectiveness of tips of kotak securities ltd which are given to
customer.
To know the average holding period of securities for the customer of kotak
securities ltd.
42
Meaning of Research
• RESEARCH PURPOSE
The project aims to find the ‘Risk taking pattern of different customer’.
The pattern was surveyed for the following people:
• Employed people.
43
• Business man.
• Other people.
Research methodology
Sampling Unit
44
This project is mainly based on primary data, which I have collected through
questionnaires. As this questionnaire is the way of knowing the risk taking pattern of
the existing customer of Kotak Securities Ltd .
Sampling Size
Sample size, which I have decided that is 100 customers for this project.
Research Procedure
Firstly I have collected the list of existing customers of Kotak Securities Ltd.
Kota and than I have started the activity of spreading questionnaires to those
customers.
• Data Collection
The data was collected by the questionnaire method. A questionnaire was
prepared which consisted of 6 questions to be filled by the customer.
45
LIMITATIONS OF THE STUDY
oLimited data.
oData discrepancies.
46
DATA PRESENTATION & INTERPRETATION
REGULARITY OF INVESTING IN
SHARE MARKET
YES NO
Interpretation:
37 % Regular investor / trader.
63 % People are Irregular investor / trader.
47
2. What makes influence people to trade in share market where uncertainty on its
peek?
150
100 100
50
0 0 0
PROFITABILTY PASSION PRESTIGIOUS
Interpretation:
100 % People Trade For Share Only For Profitability, not for passion or
Prestigious.
48
3. Liking of people in these comprehensive features of Kotak Securities Ltd
Comprehensive features of
Kotak Securities Ltd.
Interpretation:
60 % of Customers are Interested In Equity trading with Kotak Securities.
21 % of Customers are Interested In Mutual Funds with Kotak Securities.
19 % of Customers are Interested In IPO’s with Kotak Securities.
49
4. Safest market according to customer’s of Kotak Securities Ltd.
p e rc e n ta g e
se c o n d a r y 46
Share markets
p rim a ry 54
40 45 50 55
p e r c e n ta g e
Interpretation:
54 % of People Says that Primary market is the safest market with Kotak
Securities.
46 % of People Says that Secondary market is the safest market with Kotak
Securities.
50
5. Average holdings period of securities for the customers of Kotak Securities Ltd.
30< da ys 46
Days
10-30 da ys 41
5-10 da ys 13
Interpretation:
13 % People hold the securities for 5-10 days.
41 % People hold the securities for 10-30 days.
46% People hold the securities for more than 30 days.
51
6. Tips available on Kotak Securities Ltd. are how much effective as far as risk
taking ability is concerned of the investor / trader are they able to change their risk
taking ability?
Yes
44%
56% No
Interpretation:
56 % people say that tips are effective.
44 % people say that the tips are not effective.
52
FINDING & CONCLUSION
The data I have collected have a number and the number is one hundred.
I have to find out the risk taking pattern of the different age group.
I have to find out the risk taking pattern of the person of the different
occupations.
53
EMPLOYED SELF EMPLOYED PEOPLE
54
I have collected data of 100 people out of that 30 are employed and
surprisingly 22 are the regular trader of the share market. Now the general age,
which we find of an employed person, is below 50.now regularity of doing share
trading is a complete showcase of targeting them when they are entering into job.
Kotak Securities Ltd. is a famous name in the corporate and the people of big
corporate like our portal just because they have great knowledge of share market.
In Kota there are not so much companies have there setup but still most of the
companies are about to come like Reliance Fresh, Reliance Retail, and SAMCOR is
also about to setup it’s one more unit in Kota. So there is ample of opportunity of
getting business from employed people.
Most of the Employed people believe in equity trading rather than in mutual
fund or IPO’S.
All 30 people are interested towards share market because they want to earn
something, which can give additional income nothing else.
Most of them believe in the rotation of money. Out of 30 people 24 have the
average time period of their holdings below 30 days.
BUSINESSMAN
55
AGE GROUP 20-30 30-50 50 <
REGULARITY OF THE Regular investor 7 4 2
INVESTORS Irregular investor 1 3 1
WHY THEY ARE DOING
SHARE TRADING Profitability 8 7 3
Equity trading 6 4 1
FEATURE OF INVESTOR Mutual fund 1 2 2
LIKE MOST IPO 1 1 0
Primary 5 6 1
SAFEST SHARE MARKET Secondary 3 1 2
5-10 days 0 0 0
AVERAGE HOLDING 10-30 days 5 2 0
PERIOD OF INVESTOR 30< days 3 5 3
As I come to know that out of 18 people 13 are the regular trader of share
market and it is an about 72%. It is showing that businessman who is with, Kotak
Securities Ltd. doing share trading so much.
56
Most of them like to trade in equity because of pricing trend, technical
analysis and other information in research section makes or influences their
decision.
70% of them feel that primary market is the only market, which is quite safe
as far as investment is concerned.
Their average holding time is above 30 days and this clearly shows that they
believe in investing rather than in trading.
OTHER CUSTOMERS
57
AGE GROUP 20-30 30-50 50 <
REGULARITY OF THE Regular investor 0 2 0
INVESTORS Irregular investor 20 17 13
WHY THEY ARE DOING
SHARE TRADING Profitability 20 19 13
Equity trading 17 5 3
FEATURE OF INVESTOR Mutual fund 0 6 7
LIKE MOST IPO 3 8 3
Primary 8 6 6
SAFEST SHARE MARKET Secondary 12 13 7
5-10 days 0 0 0
AVERAGE HOLDING 10-30 days 5 11 8
PERIOD OF INVESTOR 30< days 15 8 5
58
CONCLUSION FROM THE DATA OF OTHER CUSTOMER’S
59
CONCLUSION
General Conclusion
As this data is showing that most of the people are not regular investor/trader
of the share market only 37% people have the habit of doing share trading on daily
basis. The basic reason behind not doing share trading on daily basis is not having
complete market watch which is quite necessary for trading.
The people who are doing share trading on daily basis are having some
different ideas in their mind like they have selected company on sector basis. Top
three company of that particular sector are in their portfolio.
This we know that if one has selected companies on ranking basis of that
sector. There are very less chances of not performing well of each sector so trader
always have a 50-50 ratio in his portfolio.
Another which is really very interesting that sensex is also dependent on most
of these companies so if there is any movement in sensex will definitely effect the
companies share value in the market and by this way a trader can survive in the
60
market and if a person is able to survive than only he can book profit from the
market.
Behind share trading there is only single idea in customer mind is to book
profit this I have come to know through questionnaire where I have given two more
option like is this passion, prestigious thing which is influencing you surprisingly all
the people have only single idea that is profitability…
Out of 100 people more than 60% people are interested in equity trading just
because of easy and prompt liquidity.
As most of the people are interested in equity trading and another side they
are feeling that safest market is primary rather than secondary because of the people
who are investing in primary market have there different segment because they don't
have so much of market knowledge and mainly they are the one who is emerging
player in this market or the one who wants to invest his money somewhere. There is
huge difference in investment and trading and trader always have high risk but he is
the one who is always having high profit.
61
Equity trading can be a profitable instrument when traders have the capacity
of holdings the securities for a very long period. Findings are showing that an about
46% people have there average time period of there holdings is more than a month.
RECOMMENDATION
As I come to know through questionnaires that the employed people are our
most important and profitable customer’s so Kotak Securities Ltd. Kota has to start
giving presentations in corporate on regular basis.
There should not be any misconception related to services in the mind set of
the customer because this can be a barrier of getting further business from them.
Their problem has to be solved immediately by Kotak Securities Ltd.
62
MANTRA OF GETTING BUSINESS FROM A BUSINESSMAN
Equity trading is the thing which a businessman like most regular share
trading add an edge to this.
Most of the businessman of Kota city are not as much educated as they should
be so for them we have to organize presentations which will be totally based on
Research because they all have their demat account but at broker where they have to
say what to sell and what to purchase and on when. That’s all
Providing better services and make them confident that they can also do this
by their hand is only thing which can help Kotak Securities Ltd. Kota to grape the
further business from them.
63
MANTRA OF GETTING BUSINESS FROM OTHER CUSTOMERS
As they don’t invest directly so there will be only one thing of covering them
is (investment in Mutual Funds or IPO’s) means whenever the new MF or IPO
comes in market, which can give them a safety of their money according to their
portfolio.
Kotak Securities Ltd. Kota has to Target these retired personnel mainly when
IPO’s comes in market otherwise getting cross sell is the only source of sales.
64
REFERENCES & BIBLIOGRAPHY
Books:
Bhalla V.K.: Investment Management; Security Analysis and portfolio
Management, S.Chand & Company Ltd., New Delhi.
Kotler Philip, Keller Kevin Lane: Marketing Management, Dorling
Kindersley (I) Pvt. Ltd. New Delhi, 2007.
Kothari C.R.: Research Metholodgy, New Age International (P) Ltd., New
Delhi, 2005.
“Project Management” By P. Chandra.
“Financial Management” By P. Chandra.
Websites:
www.kotak.com
www.kotaksecurities.com
www.nseindia.com
www.prakashgabba.com
65
NSE Publications
SEBI Guidelines
NCFM Study Material
Annexure
NAME AGE
ADDRESS
PHONE NO. MOBILE
NO.
OCCUPATION GENDER
Income
(a) Less than 10000 (b) 10000 - 20000
Profession
66
(a) Service
(b) Business
(c) Others
Q4. Which market is the safest market with kotak in your opinion?
(a) Primary market
67
(b) Secondary market
Q6. What you have felt that the research tips available with kotak
securities are?
(a) Effective
(b) Not effective
68