APROJECT REPORT

ON

“INVESTMENT OPPORTUNITIES & TREND OF INVESTMENT AMONGWORKING PROFESSIONALS”

FOR

SHAREKHAN LTD

.MASTER OF MANAGEMENT STUDIES (MMS)

UNIVERSITY OF MUMBAI

SUBMITTED TO

MARATHA MANDIR’S

BABASAHEB GAWDE INSTITUTE OFMANAGEMENT STUDIES

MUMBAI CENTRAL

SUBMITTED BY

AMIT M.MAURYA ROLL No -17

MARKETING

1. DECLARATION

I,

Amit M.Maurya

of Master of Management Studies (Semester III) of

Babasaheb Gawde Institute of Management Studies (BGIMS)

, hereby declare that I have successfully completed this project on “Investments Opportunities & Trend
of Investment among Working Professionals” as a part of my ‘Summer Internship’. The information
incorporated in this project is true and original to the best of my knowledge.

Signature
ACKNOWLEDGEMENT

I here by take opportunity to thank the people who have helped me a lot during the project work of two
months. The successful accomplishment of this project, involves sincere guidance from my Internal
Project guide – Prof.T Parmar and Prof S.Kutty their excellent guidance, encouragement and patience
made possible the successful completion of project. I would also like to thanks our director, Atul
Thakurdas, for his sincere guidance, in the accomplishment of my project. It gives me pleasure to
present the project report on

“Investment Opportunities & Trend Of Investment among Working Professionals”

for Sharekhan Ltd. It was altogether a different and wonderful experience to be there in Sharekhan
Securities Ltd. as a summer trainee .I specially want to thank my external guide Swanand Kale & Mr.
Nitesh Bang who was very cooperative with me during the entire project work. They helped me to
acquire the material regarding the information of various investment options, and helped me to
understand all those. Last but not the least I am thankful to the whole staff of Sharekhan Ltd. who
directly or indirectly helped me through out the project tenure.
CONTENTS

1.

Acknowledgement 2

2.

Executive Summary4-6

3.

Objectives of the Study7

4.

Scope of the Study8

5.

Company Profile9-19

5.1 Introduction of the Company9 5.2 Products & Services13 5.3 Competitors 19

6.

Theoretical Background20-32

6.1 Consumer Behavior20 6.2 Investing22

7.

Research Methodology33-36

8.

Data Analysis37-49

9.

Findings50-51

10.
Recommendations52

11.

Conclusion54

12.

Limitations55

13.

Annexure56-58

14.

Bibliography59

Executive Summary
This project represents information regarding various investment options available in the market and
awareness of Sharekhanas a financial service provider. The main objective of the project is to “Study
what is risk and return combination and whether the general public is aware of the various investment
options available and the risk and return associated with them”.

Other objectives include:

To conduct a survey for the company to find about the awareness of various investment options.

To find out the awareness among working professional’s about the awareness of Sharekhan as a
Financial Service provider..

To understand the trend of investment among the working professionals.

To learn the behavior of consumers in respect of the various investment opportunities available.This
research work will also help in future in understanding the behavior of customer(especially the
professional’s with handsome salary) toward investment. For execution of the project, methodology
adopted is the collection of data through questionnaire, processing and analyzing the data. The people
who were selectedfor this research are professionals having good salary.
The area of the project work is Mumbai city. Sharekhan are the one of the personalized service
providers offering a range of investment services depending on the customer needs and wants. As far as
the brand awareness is considered the Karvy tops the list so, the companies have to put the extra effort
on its awareness, and also the company has to take maximum efforts on building its marketing strategy.
According to the respondents the quality of the service is very important. So the company should
project itself as a brand in the market that gives end user the best quality of service with handy
operations. Most of the respondents have their own personal, consultant or company consultants.
Sharekhan have to differentiate their services from other consultant effectively by delivering value
added services to its customers. Organizations have to concentrate on direct marketing activities. The
consultancy should develop its long-term relationship with the customers. The consultancy must give
much more emphasis on creation of customer who make repurchase.The maximum amount of
awareness which has been generated is through newspaper, magazine, internet and word of mouth. So
the company should take care of it as it can be one of the potential media for advertisements.The
maximum respondents want to invest in tax planning and second preference for the mutual fund, so the
consultancy can decide its strategy accordingly. The consultancy has to consider the factors for
investments of respondents, effectively before making the strategy.The company should increase the
level of interaction between the customer and the Consultancy.The organization should focus on
developing long-term relationship with the customers. According to the respondents the quality of the
service is very important. So the company should project itself as a brand in the market that gives end
user the best quality of service with handy operations.

Objectives of the Study

The objective conducting this project exercise was to get useful insight about the investment sector. I
have prepared this report with some specific objective .The objectives are as under

To conduct a survey for the company to find about the awareness of various investment options.
➢To find out the awareness among working professional’s about the awareness of Sharekhan as a
Financial Service provider..

To understand the trend of investment among the working professionals.

To learn the behavior of consumers in respect of the various investment opportunities available.

➢To study the risk and return combination associated with the various investment opportunities and
whether the general public is aware about them.
 Scope of the Study
There is a wide scope of study on this research work. This project can be used by different students to
various investment opportunities available and way to save tax but as my project duration was only for
two months, I have restricted myself only to working professionals working in Mumbai city .It would
have been impossible for me to have an analysis of all people, and also people of other area i.e. outside
Mumbai, in just duration of two months. This research work will also help in future in
understanding the behavior of customer toward investment

Company Profile
Sharekhan is online stock trading company of SSKI Group, provider of India-based investment
banking and corporate finance service. Sharekhan is one of the largest stock broking houses
in the country. Shri Shantilal Kantilal Ishwarlal Securities Limited (SSKI) has been among
India’s leading broking houses for more than a century. Sharekhan Ltd is India's leading
online retail broking house with its presence through 1288'Share Shops' in 398 cities. It
has a client base of 1.5 Corers. Launched on 8

th

February, 2000 as an online trading portal, Sharekhanoffers its clients trade execution
facilities for cash as well as derivatives, on BSE and NSE, depository services, mutual
funds, initial public offerings (IPOs), and commodities trading facilities on MCX and
NCDEX. Besides high quality investment advice from an experienced research team
Sharekhan provides market related news, stock quotes fundamental and statistical
information across equity, mutual funds, IPOs and much more. Sharekhan is also about focus.
Sharekhan does not claim expertise in too many things. Sharekhan’s expertise lies in stocks
and that's what he talks about with authority. To sum up, Sharekhan brings to you a user-
friendly online trading facility, coupled with a wealth of content that will help you stalk the
right shares.

Experience

SSKI has more than eight decades of trust and credibility in the Indian stock market. In the Asia
Money broker's poll held recently, SSKI won the 'India's best broking house for 2004' award.
Ever since it launched Sharekhan as its retail broking division in February 2000, it has been
providing institutional-level research and broking services to individual investors.

Technology

With their online trading account one can buy and sell shares in an instant from any PC with an
internet connection. Customers get access to the powerful online trading tools that will help
them to take complete control over their investment in shares.

Accessibility

Sharekhan provides services for investors. These services are accessible through many centers
across the country (Over 650 locations in 150 cities), over the Internet (through the website
www.sharekhan.com) as well as over the Voice Tool.

Knowledge

In a business where the right information at the right time can translate into direct profits,
investors get access to a wide range of information on the content-rich portal,
www.sharekhan.com. Investors will also get a useful set of knowledge-based tools that will
empower them to take informed decisions.

Convenience

One can call Sharekhan’s Dial-N-Trade number to get investment advice and execute his/her
transactions. They have a dedicated call-center to provide this service via a Toll Free Number
1800-22-7500 & 39707500 from anywhere in India.

Customer Service

Its customer service team assist their customer for any help that they need relating to
transactions, billing, dmat and other queries. Their customer service can be contacted via a toll-
free number, email or live chat on www.sharekhan.com.

Investment Advice

Sharekhan has dedicated research teams of more than 30 people for fundamental and technical
research. Their analysts constantly track the pulse of the market and provide timely investment
advice to customer in the form of daily research emails, online chat, printed reports etc

PRODUCT & SERVICES

A Sharekhan outlet offers the following services:

•

Online BSE and NSE executions (through BOLT & NEAT terminals)

Free access to investment advice from Sharekhan’s Research team

Sharekhan Value Line (a monthly publication with reviews of recommendations, stocks to

watch out for etc)

Daily research reports and market review (High Noon & Eagle Eye)

Pre-market Report (Morning Cups)

Daily trading calls based on Technical Analysis

Cool trading products (Daring Derivatives and Market Strategy)

Personalized Advice

Live Market Information

Depository Services

Derivatives Trading (Futures and Options)

IPO’s & Mutual Funds Distribution

•

Internet-based Online Trading: Speed Trade

TYPES OF PRODUCTS

Classic Account

Fast trade Account

Trade Tiger

1. Classic

Account

The features about classic account are-

It is basically used for beginners i.e. Fresher

Here the transactions can be done in BSE, NSE and F&O.

There can be a market watch.

Here we can make four templates i.e. folders.

You can add 20 scrip’s in each template.

Here you can add minimum 20 scrip and maximum 100 scrip.

•
Top gainers, Top losers, Top traded equities and Top traded funds are the special links available
in this.

It gives maximum access.

You can keep lump sum amount in the account.

There is a link which is- what’s in, what’s out

A system required is Windows XP, 2000, IE 6.0.

2. Fast

trade Account

The features about fast trade account are-

We can make five templates.

You can monitor 125 companies.

Systems required here are Windows XP, 2000, IE 6.0 and Java.

You can also buy Mutual funds and IPO online.

You can also monitor circuits.

•
You can see the market depth i.e. the logic of demand and supply. It will help to decide whether
to buy or not.

It can also add trigger as in it works as a reminder.

This online trading platform is an applet- based application that provides live streaming quotes
from BSE and NSE.

Get live market prices and market statistics like best bid price, quantity, best offer price and
quantity etc. for chosen stocks.

3.Trade Tiger

Trade Tiger is an application that brings you the power of a broker’s terminal, right from your
desktop.

Trade on multiple exchanges {NSE, BSE, MCX, NCDEX} from a single screen.

Customize market watches by scripts or sectors and view them on a single screen.

Get access to technical tools and trade like a pro.

4. Invest

Tiger

This account allows you to trade through website and is suitable for retail investors.

Online trading website also comes with a Dial-n-Trade service that enables to buy and sell
shares by calling dedicated toll-free number 1-800-22-7050.
Tie ups with Banks

Sharekhan has tied up with ten banks to facilitate the transfer of money from saving account to
Dmat account and vice –versa .and by only these banks one can transfer the money by e-
banking .

AXIS Bank

Bank of India

Citi Bank

HDFC

ICICI Bank

IDBI Bank

IndusInd Bank

Oriental Bank of Commerce {OBC}

Union Bank of India

Yes Bank
TYPES OF PLANS

18

Advance Brokerage

Brokerage –Intraday

Brokerage -Delivery

750

10 paise

50paise/50paise

1000

9 paise

45paise/45paise

2000

7 paise

40paise/40paise

6000

5 paise

25paise/25paise

10000

4 paise

22paise/22paise

18000

4 paise
20paise/20paise

30000

3 paise

18paise/18paise

60000

2 paise

15paise/15paise

100000

1.5paise

10paise/10paise

EXPOSURE

In Sharekhan one can get 4 times exposure on cash and on assets one can gets 2 times.

Sharekhan gives money only for A group and B group companies.

Only Blue-chip companies get exposure and not for x group companies.

NOTES

In Sharekhan account opening is free.

•
First year’s maintenance charge is zero.

Second year’s maintenance is Rs 300.

Comparison with Competitors

► Reliance:

Here the problem is that any order you place has to be cleared by 2.30pm.

No exposure is given here.

There tie-ups with only two banks i.e. HDFC and IDBI.

In Reliance per call is Rs15 extra.

► ICICI:

It has a huge client base.

Here per call charge is Rs 25.

In ICICI you can only access one company at that time.

There tie up is only one bank that is ICICI.

There is high brokerage for delivery is 0.75 paise and intraday is 0.25 paise.
•

There is no exposure.

Annual charges are Rs 500.

THEORETICAL BACKGROUND

CONSUMER BEHAVIOR - A THEORETICAL INPUT

"The most important thing is to forecast where customers are moving and to be in front of
them." - KotlerThe aim of marketing is to meet and satisfy target customers needs & Wants.
The field of Consumer Behavioral studies how individuals, grows, and organizations. Select, buy,
use & dispose of goods, services, ideas or experiences to satisfy their needs & desires.

Understanding consumer behavior and "knowing customers" is never simple .Customers may
say one thing but do another. They may not be in touch with their deeper motivations. They
may respond to influences that change their minds at the last minute.Consumer behavior is a
process and purchase is only one stage in the process. There are many underlying influences
ranging from internal motivations and attitudes to social influences of various kinds. Yet,
motivation and attitude can be understood through research. Perfect predication is never
possible, but properly designed and used research efforts can significantly lower the risk of
marketing failure.Consumer behavior is related to an individual person (micro behavior) where
as consumption behavior relates to the mass or aggregates of individuals (macro behavior). The
study of consumer behavior always focuses on the decision process of the individual consumer
or consuming unit, such as the family. In contrast, the study of consumption behavior is
concerned with description & explanation of the behavior of aggregates of consumer or
consuming units, again at a given time or over a period of time.

Consumer Behavior Influencing Investment Pattern

Usually before investment consumers go on for a detailed study of each and every option
available to them. Often they want to go on for those options which involves less risk and that
will give more profit. Usually before investing anywhere they like to consult those to whom
they rely and those who have also invested in financial services.

INVESTING

An investment operation is one which, upon thorough analysis promises safety of principal and
an adequate return. Operations not meeting these requirements are Speculative Types of
Investment.
A) Fixed Return OptionsB) Variable Return OptionsC) Conventional returns optionsA.) Fixed
Return Options

i) Post Office Monthly Income Scheme

In this scheme, an investment can be made by individual in single or joint names up to a

maximum of Rs 9lakhs (Rs 4.5lakhs per person) with an interest of approximately 10.5% in a
monthly income scheme. In addition this investment will fetch you a taxable bonus of 8% on
the deposit maturity (i.e. after 6 years). Premature withdrawal is allowed after one year with a
discount of 5% on the amount deposited as a penalty and after 3 years without any discount on
the bonus. Interest qualifies for deduction under section 80L. Only individuals can open the
account (either single or joint).

The post-office monthly income scheme (MIS) provides for monthly payment of interest income
to investors. It is meant for investors who want to invest a sum amount initially and earn
interest on a monthly basis for their livelihood. The MIS is not suitable for an increase in your
investment. It is meant to provide a source of regular income on a long term basis. The scheme
is, therefore, more beneficial for retired persons.

ii) Other Post Office Schemes

a)National Saving Certificate (NSC):

National Savings Certificates (NSC) are certificates issued by Department of post, Government
of India and are available at all post office counters in the country. It is a long term safe savings
option for the investor. The scheme combines growth in money with reductions in tax liability
as per the provisions of the Income Tax Act, 1961. The duration of a NSC scheme is 6 years.

NSCs are issued in denominations of Rs 100, Rs 500, Rs 1,000, Rs 5,000 and Rs 10,000 for a
maturity period of 6 years. There is no prescribed upper limit on investment. Rs. 1000 becomes
Rs. 1601 after 6 years at a compounded yield of 8.16% with tax benefits under section 80L and
88. No premature withdrawal is allowed. Interest accrued annually is also reinvested in this
scheme and also qualifies for up to 15/20 % rebate under section 88. There is no tax deduction
at source.b) Kisan Vikas Patra Kisan Vikas Patras is a safe and long term investment option
backed by the Government of India which provides interest income similar to bonds. The title of
the scheme makes some misconception that it is only meant for farmers. But anyone can go for
Kisan Vikas Patra. KVP is beneficial for those looking for a safe avenue of investment without
the pressing need for a regular source of income. Money doubles at the end of specified period
.

Money can be doubled in 8 years and 7 months. There is no upper limit that you can invest.
There are no tax benefits for investments made under this scheme. The rate of interest works
out to be 8.41% (2009). Loans are available against Kisan Vikas Patra. Interest is paid on
maturity and cannot be claimed prior to maturity. This can be purchased jointly by two adults.

In the case of loss or stolen Certificate, the purchaser should report the post office at the
earliest. An application should submit in post office containing the certificate number, amount,
date of purchase /maturity etc. and declare the circumstances resulting the loss of certificate.
In such cases the identity slip comes useful to get a duplicate certificate. After the verification,
the post office will issue a duplicate certificate. If needed, the purchaser will have to submit an
indemnity bond/declaration/Bank verification.c) Senior Citizens Savings Scheme The
government has announced a new senior citizens saving scheme. It has been launched only
through designated post offices from 2

nd

august 2004. It is for individuals who have attained the age of 60 years, and who have retired
under voluntary retirement scheme on the date of opening of an account. The main features of
the scheme are that it carries an interest of 9 % p.a. (taxable) on the deposit. Deposit can be a
minimum of Rs. 1000 and a maximum of Rs. 15 lakhs, to be held for a period of 5 years and
extendable for a further 3 years. It can be prematurely withdrawn after one year with some
deductions. Interest qualifies for deductions. A depositor may open the account in the
individual capacity or jointly with a spouse. Non resident Indian are not eligible to open an
account. This Scheme is most beneficial to Senior citizens and provides a high rate of interest as
compared to bank interest of 4.5- 4.75%. Although the interest on the deposit is taxable, the
deposits themselves are tax free. As the post office is a department of the government of India,
it is a safe investment. The principal amount is assured.iii) Public Provident FundThe rate for
public provident fund is currently 8% pa. This is basically a long term investment opportunity
(maturity 15 years) as entire amount that is accumulated in this account can be withdrawn
entirely only after 15 years. Part withdrawal is allowed only after 7 years. An investor can put
up to Rs 70000 per year in PPF in either lump sum or 12 monthly installments. After 15 years
the investor can renew this account for a 5 year

period. Interest is totally exempt from income tax. The amount deposited qualifies for tax
rebate under section 88. iv) Bank Fixed DepositsBank fixed deposits yields will vary from bank
to bank but are more or less streamlined. The yields are currently ranging from 4.5 % to 5.5 %
per annum for deposits ranging from 30 days to 3 years. All scheduled banks are covered under
DICGC (deposit insurance and credit Guarantee Corporation) which mean that up to Rs 1lakh
deposited in a bank every person is absolutely safe and insured even if the bank collapses.
Interest qualifies for deduction from income tax. v) Government Securities or GiltsGovernment
securities or gilts are totally secure. Government bonds are issued by government of India
periodically. These are now available in the secondary market through satellite dealers and
banks. They are known to yield 5 to 6% per annum. Interest exceeding Rs 2500 is liable for TDS
at 10.455%.vi) RBI Taxable BondsThese are 8% bonds which are taxable. The maturity period is
after 6 years and there is no upper limit to investment in these bonds. The interest accrued on
these bonds is taxable under income tax act.vii) InsuranceThere are several types of insurance
policies available in the market today through various players. Life Insurance Corporation (LIC)
till recently held monopoly in this market. Life insurance is the most sought option as it also
offers tax benefits for premier paid. Though insurance is expenditure, it is now an investment
option.

viii) Company Fixed DepositsCompany fixed deposits was a highly popular investment vehicle in
the past. In today’s changing scenario where the corporate world has access to cheaper funds
from sources all over the world, the rates of interest offered by good companies make this a
less attractive investment vehicle.If company fixed deposits are unsecured deposits and if a
accompany goes insolvent; there is very little possibility of investor recovering his
investments.ix) Infrastructure BondsAn infrastructure bond is a tax saving bond that was
innovated in order to provide funds for the development of key infrastructure projects. Thus,
investors in these bonds apart from material benefit in terms of tax savings, have the higher
satisfaction of having contributed to the development of the countries infrastructure.

B) Variable Return Options

Mutual Funds:

Through Mutual Funds. companies pools the money of many investors -- its shareholders -- to
invest in a variety of different securities. Investments may be in stocks, bonds, money market
securities or some combination of these. Those securities are professionally managed on behalf
of the shareholders, For the individual investor, mutual funds provide the benefit of having
someone else manage your investments and diversifying your money that may not be available
or affordable to you otherwise. A mutual fund, by its very nature, is diversified -- its assets are
invested in many different securities

ii) Shares and Stock Market

Indian Stock Market Overview.The Bombay Stock Exchange (BSE) and the National Stock
Exchange of India Ltd (NSE) are the two primary exchanges in India. In addition, there are 22
Regional Stock Exchanges. However, the BSE and NSE have established themselves as the two
leading exchanges and account for about 80 per cent of the equity volume traded in India. The
primary index of BSE is BSE Sensex comprising 30 stocks. NSE has (Nifty) which consists of fifty
stocks. The BSE Sensex is the oldest and more widely followed index. Now these days even
common people is being aware about the share market in respect of 4-5 years ago . before 4-5
years ago only affluent and highly educated people were aware about share market and they
used to invest in companies stock. But the time is changing very rapidly .the people is being
educated about the share market by broking firms , stock exchange , government, news papers,
news channels and by introducing various new course in schools and colleges . now common
people have started investing in companies stocks by opening up Dmat account in various
broking firms .In this type of investment there is no certainty of return on investment one may
loose his money or can gain unexpected amount of return .In stock market people get two type
of return 1. Dividend paid by the company 2. Price rise in company’s share These two of benefit
get the stock holder only if the company is doing well and all external environment which
affects the stock market is favorable.iii) PPM (Private Placement Memorandum)

A private placement memorandum (PPM) is the document that discloses everything the
investor needs to know to make an informed investment decision. This includes: the offering
structure, the share structure of the company, disclosures about the shares being purchased,
company information, information on company operations, risks involved with the investment,
management information, use of proceeds, information on certain transactions that could
affect the investor, and investor suitability data. The PPM also includes the subscription
agreement which is the actual "sales contract" for the shares of stock. This is the document that
the investor will sign and send in with their investment funds.The PPM is very important
because it provides the investor with all of the prescribed data they will need to make an
investment decision and includes the actual documentation to effect the investment
transaction. PPM's are designed as a stand-alone document - meaning that there need not be
other information presented to the investor for them to make an accurate investment decision.
Many companies will attach their business plans to the PPM as supporting documentation. This
is an acceptable practice so long as the information in the business plan properly corresponds
with the information in the PPM and that the investor is made aware that the business plan
alone does not constitute an offer to sell securities - only the PPM can make that offer.

C) .Conventional options

1. PropertyInvestment in real estate or property is a good long-term investment for well heeled
investors with a large amount of money. People used to purchase property and when they
realize that they are getting maximum return on their investment sale it off and book the

profit. In this type of investment there is no fix rate of return its depend on the people’s
foresight.2. Gold and silverIn developing countries, people have often trusted gold as a better
investment than stock and bank deposits. gold and silver have always been popular in India
because historically these acted as a good hedge against inflation . in that sense these metals
have been more attractive than bank deposits or gilt –edged securities.In gold and silver there
is also a aesthetic appeal which attracts the people and they consider it as a value for money
.Buying the gold and silver people feel secure because these are the scarcest and they can cash
it any time at higher price than their original buying price.

The Investment at

Glance

a)

IXED RETURN OPTION

Option & BenefitSafetyLiquidityReturnPost Office – MP (8%) 10% Bonus On Maturity

HighGoodGoodN.S.C. (8.16% compounded). Tax benefits, No TDS

HighLowModerateKisan Vikas Patra (8.4%) 8yrs. 7mths. Double You’re Money. No TDS. Loan
Available From Banks against KVP

HighLowModerateSenior Citizen Saving Scheme (9%) – HighGoodModerate

TaxablePPF (8%). Offers tax benefits HighLowModerateBank FDs (between 4.5 -5.5%) Deposits
covered by DICGC up to Rs. 1 lakh.

HighHighLowGovernment Securities, Gilts (5-6%)HighGoodLowRBI Taxable Bonds (8%). The

interest accrued is taxable

HighLowModerateInsurance HighLowLowCompany FD. Not a recommended investment option

in today’s environment

LowLowLowInfrastructure BondsHighModerate

Moderateb) VARIABLE RETURN OPTION

OptionSafetyLiquidityReturnMutual Fund – Debt, Income , Saving Funds

HighVariesLowMutual Fund – EquityLowLowHighMutual Fund –Balance Fund

Moderate
GoodModerateShare marketLowModerateHighProperties marketModerate

LowVaries

Research Methodology
Following are the various definitions of marketing research:1)According to Philip Kotler, it is a
systematic design, collection, analysis, of data and relevant to a specific marketing situation
facing the company. 2)According to American Marketing Association, it is the function which
links the customer and the public to the marketer through information used to identify and
define marketing opportunities and the problems; generate, redefine action; monitor
marketing action; monitor marketing performance and improve understanding of marketing as
a process.Marketing research process

: Marketing research is the systematic design, collection, and analysis of data and findings
relevant to a specific marketing situation facing by the company.

Type of Research:

Descriptive research: descriptive research is chosen for this project, because this project deals
with, knowing the customer preferences for the investment and knowing customer habits
relating to financial services provided by the consultancy.Both quantitative and qualitative
approaches are used for the project, but more emphasis is given on the qualitative approach.
As we tried to know customers interested area of investment, so that we can measure their
motiveDetermining The Sources Of Data Collection

:The sources of data collection were primary and secondary source. Primary data has been used
for analysis of the objective of research. As well as secondary data proved to be helping hand in
completion of the project.Primary data: Primary data are those, which are, collected for the
first time, and it is original in character. In this research, primary data was collected by the use
of questionnaires.Secondary data: Secondary data on the other hand are those which have
already been collected by someone else and which have already been passed through the
statistical process. In this project secondary data used were, books, magazines, internet and
other project reports.Reasons for selecting the primary data:

Since the main objective of the project, knew the customer preferences for the financial
service, the best tool that can satisfy all the requirement of data was the primary data. One
needs to have the depth knowledge the customer views, and their perception and their
investment pattern. The information has been collected through questionnaire.Thus the
primary data have been proved one of the potential approaches in collection of the
information.
Data collection methods

: Methods of data collection used for the project is:Survey method: The tools, which have been
undertaken are 1) Through email The structured questionnaire has been undertaken to
extract the desired information from the respondents. Also both closed and open-ended
questions are used to determine the perceptions of respondent. To obtain the information, the
questionnaire are mailed to the respective respond, which result in cost reduction as well as, in
a very short period we become able to obtain the necessary information to carry out the
project more effectively and efficiently 2) Personal interview: It is direct form of
investigation involving face-to-face communication with free feedback information. It offers a
sense of the participation. It is more flexible form of data collection. Depth interview is possible,
complex questions can be asked. Observational approach can be used to verify income and the
intentions of a consumer more effectively.3) Sample Unit: It gives the target population
that will be sampled. This research has been carried only in Mumbai city. As the sample which
we have chosen are the people who are working in the IT and software, construction and real
estate , companies having handsome salary. These people are

always keen to invest at large extent. Also this is the sample that will consult the consultancy
for the investment decisions.For this research, target respondents were–IT & Software
executives.–Professionals working in the organization.The reason for selecting this sample was
these are the people who will consult the organization for investments, as they are having the
potentiality to invest huge amount of money, and which need the proper guidance about the
financial services in which they are going to invest.Sample Universe: The universe of research
was the Mumbai city.Sample size: A total of 75 respondents were surveyed.Area of operation:
Mumbai City Location: 1) L & T 2) T C S 3) RCF
4) Mahindra Holidays

DATA ANALYSIS
1)

Awareness Of Financial Services

The graph above shows that awareness about Tax Planning was the highest i.e. 34%.After that
23% people were aware about Mutual funds then comes Insurance-20%.17% of the people
were about Bond’s/F.D.’s. The least awareness was found for Stock broking And PPM i.e. 3%
each.

2)

Awareness

of

Sharekhan

Our sample size was 75, and it was found that only 75% were aware about Sharekhan & 25%
are not aware of Sharekhan.

Aware

ness Of Financial Consultancies

Among the Financial consultancies, the highest awareness was for KARVY-17% then comes
ENAM is 16%. For Agents the percentage was highest as it was 33.33%.

4)

Customer awareness From Media

In respect of the customer awareness about financial services from media, Newspaper and T.V.
were on the top most i.e. 20% each. For others, the percentage was – for Magazine-17%, for
Radio, Agents, Franchise, and reference it was 10% each. The lowest was for Hoardings i.e.3%
only.

).

Interested In Investment
Out of 75 sample unit, 67% of the people were interested in investment, and only 33% of the
people show their disinterest in investment.

6).Areas

of

investment Out of sample unit 150, the percentage of people interested in different areas was
as follows:Tax Planning-30%, Mutual Funds-27%,Insurance-20%,Bond’s/F.D.’s-13%,Stock
Broking-7% and for PPM only 3%

6(i)

Factors Considered for

Investment In Insurance Sector

Factors Considered For Insurance Sector

63%30%7%0%

20%

40%

60%

80%Tax SavingSafetyHigh Returns

63% of the people say that for the purpose of tax saving they invest in Insurance sector. Safety
was the reason given by another 30% of the people .And 7% of the people said that it gives high
return that’s why they invest in insurance sector

Factors Considered For

Investment

In Mutual funds

Factors Considered For Mutual Fund Investment Sector

43%30%14%13%0%
5%

10%

15%

20%

25%

30%

35%

40%

45%

50%High ReturnsHigh LiquidityCapital BuildingDiversification OfRisk

43% of the people said that Investing in Mutual Funds Gives high returns.30% of the people
gives the reason as high liquidity.14% of the people said that investing in Mutual funds helps in
capital building, while the next 13% people give the reason as diversification of risk.

Factors Considered

for Investment for Tax Planning

Factors Considered For Tax Planning

75%25%0%

20%

40%

60%

80%Tax SavingSafety

For tax Planning 75% of the people said that it helps in tax saving, while 25% said that it is very
safe.
Factors

Considered For Investing In Bonds

Factors Considered For Bonds

58%43%0%

10%

20%

30%

40%

50%

60%

70%Tax SavingCapital Building

58% of the people said that Bonds help in Tax Saving while 43% were of the view that it helps in
building capital.

Factors

Considered For Investing In Bonds

Factors Considered For Bonds

58%43%0%

10%

20%

30%
40%

50%

60%

70%Tax SavingCapital Building

58% of the people said that Bonds help in Tax Saving while 43% were of the view that it helps in
building capital.

Factors Considered For Investment In Stock Broking:

Factors Considered For Stock Broking

55%45%0%

10%

20%

30%

40%

50%

60%High Returns High Liquid

High return was the reasons given by 55% of the people for their investment in Stock
Broking.45% people give the reason, that it gives high liquidity.

7) Reason

of

Unwillingness
Of The

People in

Respect Of Investment

30% of the people said that because of the previous loss they had suffered they are not willing
to invest. Another 30% of the people said that that due to lack of knowledge they do not invest
in various options. High risk was the reason for another 23% of the people, while the rest
17%the people said that due to lack of financial planning they do not invest.

8)

Investment Pattern Of The People From Their Annual

Income

From the graph following we get the following data:Financial Services

Annual income

5-10% 10-15% 15-20% 20%& above Total

Tax planning 510151545 Mutual funds 1015100540 Insurance 0808100430 Bond’s/FD 0510
00520 Stock Broking 0505 0 010 PPM 0302 0 005

9)

Preferable Period O

f Investment

From the survey we found that for most of the people preferable period of investment was
from Jan-Mar. The least preferable period was from Oct.-Dec.

10) Peoples Preference for I

nvestment Through Consultancies

Out of the total sample unit of 150, 65% of the people said that they would like to invest
through consultancies while the rest 35% of the people showed their unwillingness towards
Investment.

FINDINGS

1) From the survey it was found that most of them are aware about Sharekhan as a Financial
Service Provider. 2) Among all the services, most of the people were aware about Tax
Planning’s and least awareness was for PPM and Stock Broking, so efforts should be taken
accordingly.3)As far as the brand awareness is considered the Karvy tops the list so, the
companies have to put the extra effort on its awareness, and also the company has to take
maximum efforts on building its marketing strategy.4) According to the respondents the quality
of the service is very important. So the company should project itself as a brand in the market
that gives end user the best quality of service with handy operations.5) Most of the
respondents have their own personal, consultant or company consultants. Sharekhan have to
differentiate their services from other consultant effectively by delivering value added services
to its customers. 6) Organizations have to concentrate on direct marketing activities. The
consultancy should develop its long-term relationship with the customers.7) The consultancy
must give much more emphasis on creation of customer who make repurchase.8) The
maximum amount of awareness which has been generated is through newspaper and TV. So
the company should take care of it as it can be one of the potential media for advertisements.

9) The maximum respondents want to invest in tax planning and second preference for the
mutual fund, so the consultancy can decide its strategy accordingly.10) The consultancy has to
consider the factors for investments of respondents, effectively before making the strategy.11)
From the survey I also founded that the consultancy lacked in after sales service which is very
important in today’s business. 12) Consultancy should eliminate the brand myopia as customers
can jump on to their competitors as it is a lucrative market & every player has lot of benefit to
offer to the customers.

RECOMMENDATIONS
On the basis of the conclusion, there are few points on which Consultancy should make
improvements.1) It is important for a consultancy to create awareness about its financial
services more effectively.2) The customers are expecting frequent and timely correspondence
from the consultancy regarding their funds and the monthly market overview. Therefore the
organization needs to give more weightage on this concern.

3) The company should increase the level of interaction between the customer and the
Consultancy.4) The organization should focus on developing long-term relationship with the
customers. 5) According to the respondents the quality of the service is very important. So the
company should project itself as a brand in the market that gives end user the best quality of
service with handy operations.6) Sharekhan should focus on their service segment as customers
are highly dissatisfied with after sales service.7) Sharekhan should have CRM (Customer
Relationship Management) which will have a greater impact of the company in the minds of the
people.8) As the consultancy is selling a intangible product, service plays a very important role
in enhancing the value of the brand in the market.9) The Relationship Manager is the first leg
through which the customers interact so its very important the consultancy should have a
highly efficient relationship manager so that the customers query get answered & he or she is
highly satisfied & feel good about the company.10) Seminars should be held for providing
information to prospective and present customers so that they feel secure in investing there
money in different financial products.For e.g.: If a customer has information on derivatives he
may invest in derivatives but then he should also be informed that the derivatives are highly
risky segments. 11) Sales people of the consultancy should go for training schedules periodically
so that they should be aware of different financial products which the consultancy is offering
and it’s USP (Unique Selling Proposition)

CONCLUSIONS
As most of the executives who were taken as our sample unit were from middle class or upper
middle class, they have a decent amount of saving. So they are willing to invest in different
options only if they are aware about the product they are getting into. So it is
important for the company, to create awareness about its financial services more effectively. It
is also necessary for the company to become customer friendly, to solve their query and to
provide information as and when required.

LIMITATIONS
1
) The survey and research has been done only in Mumbai, therefore the results show the
market position of Mumbai only, so results cannot be considered as representatives of whole
India.2) The psychology and temperament of a respondent play a significant role. Some
respondents are more sensitive as against others who are more tolerant. A change in the
composition of the respondent can affect the answers adversely or favorably.3) The responses
of the respondent may be biased, as they were not true in answering the questions. 4) Some
respondents can be the customers of Sharekhan which can have a significant impact on there
response depending on whether they are satisfied or dissatisfied.

ANNEXURES
QUESSTIONAIRE

Name: --------------------------------------------------

-----------------------------

Gender : -----------------------------------------------

---------------------------

Age : ----------___

Marital Status; ____________________

---------------------------

Company : ------------------------------------------

------------------------------

Mobile no :--------------------------------------------

-----------------------------

Q1) Are you aware of any of the following financial services?

a) Insurance b) Mutual Funds c) Bond’s /FD’s d) Stock Broking e) Tax
Planning f) Personal Portfolio Management g) None of the above h) Any
other (Plz specify);__________________________

Q2) Are you aware of Sharekhan as Financial Service provider?

a) Yes b) No

Q3) Are you aware of any of the following Consultancy?

a) ENAM b) Morgan Stanley c) ICICI d) Karvy e) Agents f)

INDIABULLS g) Others (Specify) __________

Q4) From which of the following Media you come to know about the Financial Services?

a) Magazines b) Newspaper c) T.V. d) Radio e) Agents f) Franchise

g) Hoardings h) Friends i) Others j) Reference

Q5) Do you invest in financial services?

a) Yes b) No

Q6) If yes, in which have you invested?

a) Insurance b) Mutual Funds c) Bonds /F.D d) any tax planning e) Personal

Portfolio Mgmt. F) Any other (specify)

Q7) If no, what is the reason behind not preferring to any financial services?

a) High risk b) Lack of knowledge c) Previous loss d) Lack of financial planning’s e)

Any other reason ………..

Q8)How much percentage do you invest/ would you like to invest from your annual income?

a) Insurance— 1)5-10% 2) 10-15% 3) 15-20% 4) 20% and aboveb) Mutual Funds- 1)

5-10% 2) 10-15% 3) 15-20% 4) 20% and abovec) PPM 1) 5-10% 2) 10-15% 3)
15-20% 4) 20% and above d) Bond’s / F.D’s 1) 5-10% 2) 10-15% 3) 15-20% 4) 20%
and abovee) Tax Fund’s 1) 5-10% 2) 10-15% 3) 15-20% 4) 20% and above

Q9) What are your preferable periods for investment?

a) January –March b) April – June c) July –September d) October-December

Q10) Would you like to invest through consultancy?

a) Yes b) No

Q11) If yes, what all services would you expect from the Consultancy?

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BIBLIOGRAPHY
A)

BOOKS:

1) Philips Kotler,’Marketing Management’ Prentice Hall Of India. New Delhi, 10th edition,
20012) Kothari C.R. ‘Research Methodology’ Wishwa Prakashan, New Delhi, 2nd, Edition,
20013) Kulkarni M.V.’Marketing Research’ Everest Publishing House, Mumbai, Millinium
Edition,2001.

B)Internet

1)http://www.icicibank.com/pfsuser/demat/demathome.htm

2)http://www.sharekhan.com/Services/

3)http://

www.Equitymaster.com

4)http://

www.Moneycontrol.com

5)http://www.webindia123.com/finance/post/mis.htm

6)http://nseindia.com/