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PROJECT REPORT
ON
SELLING OF INVESTMENT PRODUCTS & SERVICES
OF
INDIA INFOLINE
SUBMITTED TO M D UNIVERSITY ROHTAK FOR THE PARTIAL
FULFILLMENT OF DEGREE OF MASTER OF BUSINESS ADMINISTRATION FOR
THE ACADEMIC SESSION 2010-2012
FACULTY GUIDE: - Mrs. NIDHI GOYAL
UNDER THE GUIDANCE OF SUBMITTED BY:
MDU UNIVERSITY Parvez Akhter
ROHTAK 10-MBA-1036
RAWAL INSTITUTE OF MANAGEMENT
SOHNA ROAD, NEAR ZAKOPUR, FARIDABAD
1
Declaration
I PARVEZ AKHTER here by declare that the project work entitled “SELLING OF
INVESTMENT PRODUCTS & SERVICES” is an authentic work carried out by me at “INDIA
INFOLINE” under worthy and esteemed guidance of Mrs. Nidhi. The material provided in this
report is original and has not been submitted anywhere for any other diploma or degree.
I also declare that all the information and schemes gathered by me during course of the
project at “India Infoline Ltd.” will be kept strictly confidential.
Signed by Institute Guide Signature of Student
Name: Name:
Date: Date:
2
AKNOWLEDGEMENT
This study is internal part of our MBA program and to this project in a short period was a heavy task.
Intention, Dedication, Concentration and Hard work are very much essential to complete any task. But it
still needs lots of support, guidance, co-operation of people to make it successful.
Any work that is well accomplished is half done without a word of gratitude. I would like to extend
my heartfelt gratitude to all those who have contributed towards the successful completion of my project.
Foremost among them is Mrs. Nidhi for her helpful and generously extended support and by sparing
his valuable time to guide and suggest me towards completion of this project.
I do owe a deep sense of gratitude to all my friends, colleagues and all those stood with me and for
their continuous support and co-operation during the project. They too have contributed in no mean
amount towards the success of my endeavors.
Last but not Least, I express my heartfelt gratitude to my Parents who financed this project and have
been a moral support to me during this project.
PARVEZ AKHTER
3
PREFACE
Management Training has gained rapid importance only recently. Management was previously
considered as an inborn art or talent.
But in today’s fast developing world this view has been abandoned.
To develop managerial capabilities and to supplement their theoretical knowledge with practical
experience, the management students are required to go for training in business organization.
A comprehensive understanding of the principle will increase their decision-making ability and
sharpness their tools for this purpose. As an essential part of our course, I got the privilege to have training
in “INDIA INFOLINE”. The work has been carried over a span of 2 months. The scope of work under
taken by me includes research and competitive analysis and why customers think which “INDIA
INFOLINE” is better than others and about our services.
4
INDEX
S.NO CONTENTS PAGE NO. SIGNATURE
1 CHAPTER 1
Executive summary
Introduction of the project
Objectives
2 CHAPTER 2
Organization Structure
5
EXECUTIVE SUMMARY
There is growing investment between different firms in post reform India. For investor it is
always difficult to decide which investment firm to choose.
Research was carried out to find which investment house people prefer and to figure out what
people prefer while investing in stock market.
This study suggest that people are reluctant while investing in stock and commodity market
due to lack of knowledge
Main purpose of investment is returns and liquidity, commodity market is less preferred by
investors due to lack of awareness. The major findings of this study are that people are interested
to invest in stock market but they lack knowledge.
Through this report we were also able to understand, what are our Company’s (India Infoline
Ltd.) positive and strong points, on the basis of which we come to know what can be the basis of
pitching to a potential client. We also gave suggestions to the company, what improvement can
be done to our product.
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INTRODUCTION TO THE PROJECT
This project is a very good task for the selling of the company’s products & services and the
satisfaction level of the customers of various companies. India Infoline Ltd. is brand name in the
field of securities. The major other players in this field are India Bulls, Share Khan, ICICI Direct,
Kotak, Reliance etc. This project includes the various services provided by the company like
research mails, online trading, online terminal etc. In my project I have covered the various
functions of the company mainly taking into consideration the share broking. The various
product and services of companies will help in this study to make a clear cut idea of market
demand of the company as well this will provide the base to improve the strategies to make the
company more competitive.
In this project I have also analyzed the customer perception about the various services
offered by the company and the market scenario. It will help in comparison of the companies
from the point of the customers. There is a need of this study because customers have the veto
power to accept or reject a product or a service.
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OBJECTIVES
I was assigned with the task to do selling the investment plan of India Infoline Ltd. as a part
of the summer training curriculum. The entire project was divided into three parts:
1. Gathering data about the leading online broking houses and compare the main points and
find the strengths of India Infoline compared to them.
2. Conducting Market Research in various parts of the city in order to get statistical data for
comparing on the Competitor Analysis of India Infoline.
3. Customer Acquisition through sales of Trading/Demat accounts in order to get a deep
insight as to how the organization actually performs these functions.
4. Financial Comparison of India Infoline and Comparison on the basis of Financial Ratio.
5. What factors motivate to customers to invest in Share Market and why they think it is
only speculation investing in share market.
I have to be in regular contacts with our clients so that I come to know about the problems
they are facing. This also helps me to multiply my clients by getting the further references.
By this I am able to make a chain of the customers which expands as I satisfy their needs.
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COMPANY HISTORY
We are originally incorporated on October 18, 1995 as Probity Research & Services Private
Limited at Mumbai under the Companies Act, 1956 with Registration No. 11 – 93797. It was
converted into a Public Limited Company on April 28, 2000 and the name of the Company was
changed to Probity Research & Services Limited. The name of the company was changed to
India Infoline.com Limited on May 23, 2000. The name of the company was further changed to
India Infoline Limited on March 23, 2001.
We commenced our operations in October 1995 as Probity Research and Services Private
Limited, as an independent provider of information, analysis and research covering Indian
businesses, financial markets and economy, for institutional customers.
In 1999, we identified the potential of the Internet to cater to a mass retail segment and
transformed our business model from providing information services to institutional to retail
customers. Hence, we launched our Internet portal, www.indiainfoline.com and started providing
news and market information, independent research, interviews with business leaders and other
specialized features.
In May 2000, the name of our Company was changed to India Infoline Limited to reflect the
transformation. Over a period of time, we have emerged as one of the leading business and
financial information services provider in India.
In the year 2000, we leveraged our position as a provider of financial information and
analysis by diversifying into transactional services, primarily for online trading in shares and
securities and online as well as offline distribution of personal financial products, like mutual
funds and RBI Bonds. These activities are carried on through our wholly owned subsidiaries.
Our broking service was launched under the brand name of 5paisa through our subsidiary,
India Infoline Securities Private Limited and www.5paisa.com, the e-broking portal, was
launched for online trading in June 2000. It combined competitive brokerage rates and research,
supported by Internet technology. Besides investment advice from an experienced team of
research analysts, we also offer real time stock quotes, market news and price charts with
multiple tools for technical analysis.
In December 2000, our subsidiary, India Infoline Insurance Services Limited became a
corporate agent for ICICI Prudential Life Insurance Company Limited. We mobilized Rs. 36.17
9
million of Weighted Annualized Premium during FY2003. In FY 2004, it rose by 287.42% to
Rs. 103.96 million. We have consolidated our position even further in the current financial year.
In the year 2004, we launched commodities broking through our subsidiary India Infoline
Commodities Private Limited. We also received a license for Portfolio Management Services
from SEBI for our broking subsidiary.
Features
In May 2000, the name of our company was changed to India Infoline.com Ltd. to reflect the
transformation of our business. Over a period of time, we have emerged as one of the leading
business and financial information services provider in India.
In the Year 2000, we leveraged our position as a provider of financial information and
analysis by diversifying into transactional services, primarily for online trading in shares and
securities and online as well as offline distribution of personal finance products, like Mutual
Funds and RBI Bonds.
Our broking services were launched under the brand name of 5paisa.com through our
subsidiary, India Infoline Securities Pvt. Ltd. and www.5paisa.com. The e-broking portals, was
launched for online trading in July 2000. It combined competitive brokerages rates and research,
supported by internet technology besides investment advice from an experienced team of
research analysts. We also offer real time stock quotes, market news and price charts with
multiple tools for technical analysis.
VISION
“To be the most respected company in the financial services space.”
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SUCCESS JOURNEY
1999- Vision to provide anything that you would want to know about Indian business &
finance www.indiainfoline.com Name of the company included dot com
2000- We moved away from portal, launched online trading- 5paisa.com
Dot com was deleted from name of the company
2001- Became an insurance agent- purely offline
2002- Into a minefield- struggle to survive
2003- One stop shop for financial services
2004- Fortunes change- started dreaming IPO
2005- IPO and listing
2006- Strong growth- Foray consumer finance
2007- Seize the opportunity- Institutional equities
2008- Build upon strengths- Wealth & Asset Management
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COMPANY PROFILE
The India Infoline Group comprises the holding company, India Infoline Ltd, which has 4
wholly-owned subsidiaries engaged in distinct yet complementary businesses which together
offer a whole bouquet of products and services to make your money grow. As on date, the Group
employs 14000 plus Employees in over 60 locations, across India. The corporate structure has
evolved to comply with oddities of the regulatory framework but still beautifully help attain
synergy and allow flexibility to adapt to dynamics of different businesses.
BSE CODE - 532636
BSE Group - A
NSE CODE - INDIAINFO
Industry Name - Finance & Investments
House Name - Indian Private
Registrar - In time Spectrum Registry Ltd
Auditors - Sharp & Tannan Associates, Charted Accountant
Legal Advisor to the issue – Crawford Baylay & Company
Bankers –
State Bank of India
Yes Bank Ltd.
UCO Bank
State Bank of Travancore
Kotak Mahindra Bank
ICICI Bank Ltd.
HDFC Bank Ltd.
Hongkong & Shanghai Banking Corporation Ltd.
Punjab National Bank
Standard Chartered Bank
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Union Bank of India
Allahabad Bank
Axis Bank Ltd.
Bank of Baroda
Citibank NA.
Compliance Member – Ms. Komal Parikh [Company Secretary]
Syndicate Member – Enam Securities Pvt. Ltd.
Public Issue Date – 21/04/05
Face Value – 2
Market Lot – 1
ISIN - INE530B01024
Current PE – 8.1765
Current Market Capital – 38,797,460,000
Key Dates
Year Ending Month March
AGM Date (Month) July
Book Closure Date (Month) July
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Settlement cycle
Exchange Settlement cycle Pay in Pay in Payout
Payout
NSE Wed-Tue Mon Tue Wed Wed
BSE Mon – Fri Wed Thurs Fri Sat
INDIAINFO Share Holding
Name No of Shares % Share Holding
Total Promoters 16486501.00 36.09
Total Foreign 12730808.00 27.87
Total Public & Others 7808327.00 17.09
Total Institutions 715128.00 10.32
Total Non Promoter Corporate
Holding3944452.00 8.63
Registered Office –
Address - Building No 75 Nirlon Complex, Off West Exp Highwy Goregaon-E
District - Mumbai State - Maharashtra
Pin Code - 400063 Tel. No. - 91-022-56775900/26850101
Fax No. - 91-022-26850451
Email: - [email protected] Internet: - http://www.indiainfoline.com
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OWNERSHIP PATTERNS
The Management
Mr. Nirmal Jain (Chairman & Managing Director)
Mr. R Venkataraman (Executive Director)
Mr. Narendra Jain (Chief Operating Officer)
Mr. R Mohan (Chief Compliance Officer)
Mr. Kapil Krishan (Chief Financial Officer)
The Board of Directors
Mr. Sat Pal Khattar (Non- Executive Director)
Mr. Nilesh Vikamsey (Non- Executive & Independent Director)
Mr. Kranti Sinha (Non- Executive & Independent Director)
Mr. A. K. Purwar [Director]
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Company Secretary
Falguni Sanghvi Company Secretary
DIVISIONS
BOARD MEETINGS
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Meeting Date Remark
28-04-2009 Audited Results
21-01-2009 Quarterly results, Interim Dividend & Others
29-11-2008 Buy Back of Shares
28-11-2008 Buy Back of Shares
17-11-2008 Employees Stock Option Plan
17-10-2008 Quarterly Results
29-07-2008 Employees Stock Option Plan
26-04-2008 Audited Results, Dividend & Stock Split
22-01-2008 Quarterly Results
24-12-2007 Preferential allotment of equity shares
23-10-2007 Quarterly Results
30-07-2007 Quarterly Results
25-04-2007 Audited Results
19-03-2007 Interim Dividend
23-01-2007 Quarterly Results
17-10-2006 Quarterly Results
24-07-2006 Quarterly Results
26-04-2006 Accounts, Dividend & Merger
16-01-2006 Quarterly Results & Interim Dividend
29-12-2005 Finalization of ESOP scheme
22-10-2005 Quarterly Results
15-09-2005 Formation of a subsidiary Co. in Dubai
21-07-2005 Quarterly Results
19-05-2005 Accounts & Raising of Debt
DIVIDEND DECLARED
17
Announcement Date Effective Date Dividend Type Dividend (%) Remarks
15-01-09 29-01-09 Interim 140.00 –
28-04-08 26-06-08 Final 60.00 AGM
12-03-07 22-03-07 Interim 30.00 –
26-04-06 19-07-06 Final 10.00 AGM (Revised)
17-01-06 24-01-06 Interim 20.00 -
SWOT ANALYSIS
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Strengths
Original research
Integrated technology platform
“One Stop” shop
Pan - India distribution network
“India Infoline.com” and “5paisa.com”
have developed into brands
Weakness
Lack of a banking arm to complete the
bank-broker-depository chain
Insignificant presence in institutional
segment
Opportunities
Changing demographics with higher
disposable income and increasingly
complex financial instruments will
drive demand for investment advisory
services
Rapid penetration of Internet and
computers means that technology
enabled financial services will gain
market share
Threats
Economic slowdown
Volatile movement in indices and
events like May 17, 2004
Stock markets falls will have a
cascading effect on our mutual fund
mobilization
Increase/decrease in interest rates
can affect our debt/ income fund
mobilizations
Future changes in personal taxation
rules can impact insurance sales
Increasing competition from large and
particularly foreign players
TECHNOLOGY
19
We believe that online trading will gain market share due to significant advantages that it
offers
It enables the customer to trade directly without any agent intervention
It offers customers the convenience of trading from almost anywhere
It enables rapid dissemination of information and at reduced costs
It offers a responsive mechanism for reporting grievances, problems and bugs
HUMAN RESOURCES
20
Our Human Resources policy is based on the philosophy of “Owner Mindset”. We believe
that the key to our continued growth lies in unleashing the entrepreneurial energy of our
employees.
We encourage all employees to behave more as 51 owners of their departments rather than
employees. Our people are highly driven and work towards increasing India Infoline’s brand and
market share across product lines.
We have developed extensive in-house training modules. In addition, our staff is trained by
various Asset Management Companies and ICICI Prudential Life Insurance Company Limited.
We lay emphasis on “On the job training” where an experienced and senior person mentors a
junior executive.
In addition to salary, our employees get performance-based incentives on a quarterly basis.
We have also implemented an Employee Stock Option Plan.
STRATEGY AND ITS ELEMENTS
21
"One Stop Shop" from advice to Aransactions
22
We have emerged as one of India’s leading financial information Internet portal in India. We
distribute mutual funds and life insurance products through our branches as well as directly
through our sales team.
These factors allow us to provide our customers with an integrated online as well as offline
solution to fulfill all their financial information and transaction needs. We believe that our ability
to offer multiple products across broking to insurance to mutual funds to commodities to small
savings differentiates us from our competition. This also offers significant cross selling
opportunities which will help in improving margins as incremental revenue will entail lower
customer acquisition and promotion costs.
Multi Channel Delivery Model
We intend providing a single convenient and reliable platform from which our users can
obtain information, trade online or purchase offline a wide range of personal financial products.
Our branches have been opened in cities after a detailed study of demographics and investment
patterns in different cities.
Expand our Retail Network
We have a retail branch network of 73 branches at 36 locations across India to provide an
alternative channel for our customers to transact with us and to support our online services.
These branches allow our customers the opportunity to purchase personal financial products and
trade at such branches with the assistance of our staff. We propose to set up additional 77
branches in 50 cities across India to have a network of 150 branches to further strengthen our
geographic reach.
Leverage our content Advantage for Value Added Offerings
23
We believe that the key to successful investment is research. We have invested considerable
resources in building our research domain skills. Our top management has hands on experience
in equity research. We will continue to expand the breadth and depth of research and content on
Indian business and finance. This research advantage will enable us to acquire customers in high
value added product offerings especially PMS.
Continuous Investments in Technology Platform
We have leveraged the power of technology to offer an integrated platform to the customer to
transact. We will continue to invest in such technologies that would enhance customer
experience while interacting with us. We have facilitated integrated trading and depositary
accounts for the customer, payment gateways with multiple banks, online Internet enabled back
office and MIS. We believe that our technology investments will be a key driver in scaling up of
the business.
Acquisition & Takeover
We strongly believe that to become a market leader in the investment advisory and
intermediation space, we have to expand our business. In our endeavor to do so and as per our
business strategy we may pursue inorganic growth.
COMPETITIVE ADVANTAGES
24
We are strategically positioned to leverage our strength in the domestic market, due to our
competitive advantages that include the following:
Research
We have our roots in equity research. Our original business model was to provide research
and information services on Indian business and capital markets to institutional customers. Our
executive directors have equity research and investment experience in leading banks and
brokerage houses.
Integrated Technology Platform
Since the launch of our website, www.indiainfoline.com, and our online trading platform,
www.5paisa.com, we have invested in building a technology platform. We use a mix of in-house
and outsourced technologies to offer a user-friendly interface for online trading. Our Trader
Terminal is an application which allows customers to trade on both the BSE and the NSE.
We believe that our technology strengths will enable us to scale up the business without a
proportionate increase in operating costs.
Multiple Product Offerings make us a “One Stop” Shop
We provide a range of products and services to our customers, either directly or through any
one of our wholly owned subsidiaries. These multiple offerings across multiple channels – either
online through Internet or offline through any of the branches or over the telephone enables us to
emerge as a financial “one stop” shop. This also offers significant cross selling opportunities,
which helps us in strengthening customer relationships and loyalty.
Pan - India Distribution Network
25
We have 73 branches across 36 towns and cities in India. These branches help in customer
acquisition as well as customer service. This is a part of a conscious “bricks and clicks” strategy
to reach out to our customers.
“India Infoline.com” and “5paisa.com” have developed into Brands
India Infoline.com and 5paisa.com are well known brands amongst retail investors across
India. In all the cities that we have expanded into, we have been able to leverage upon brand
awareness and have established a customer base.
Experienced Management Team
Our management team has hands on experience in financial services, especially targeted at
retail sales and relationship management.
Customer Relationship Management
We have developed a team of Customer Relationship Managers across India to handle key
customer accounts. These people are experienced in financial services and have undergone in-
house training. This allows them to offer unbiased advice on not only equities but also on other
investment products like mutual funds and insurance.
Robust Risk Management Systems
We manage the risks associated with our broking operations through use of internally
developed credit algorithms implemented through fully automated risk management software
and selective direct monitoring of certain operating parameters. Our automated risk management
procedures rely primarily on internally developed Risk Management System and systems
provided by our vendors.
FINANCIAL PROFILES OF COMPANY
26
ICRA has assigned an A1+ (Pronounced A one Plus) ratings to the 5.0 billion Short-Term
(current fund based-Rs.1.65 billion and current Non-Fund based – Rs. 2.60 billion) bank
facilities of India Infoline Ltd. (IIL). The Short-Term instrument under Fund based and Non
Fund based limits are interchangeable and as such the combined utilization should not exceed
Rs. 5.0 billion. The rating indicates the highest credit quality rating assigned by ICRA to short-
term debt instruments. Instruments rated in this category carry the lowest credit risk in the short
term. ICRA also has an A1+ rating outstanding on IIL’s Rs. 5 billion short term debt programme.
The rating is derived after considering the combined financial and business profile of all
companies in India Infoline Ltd. Group. The rating factors in IIL’s significantly enhanced net
worth following private equity placements, adequate experience in retail broking business and its
increasing market share, strengthening institutional broking business, diversified business
revenues, robust risk management systems and improving financial performance. The rating also
factors in the inherent volatility in its prime business of equity broking business, which is prone
to cyclical downturns and group’s foray into highly competitive consumer finance business,
which is perceived to be relatively riskier.
Results (consolidated) for the quarter and year ended March 31, 2009
Income for the year at Rs9,630.9 million, down 5.9% yoy
Profit before Tax for the year at Rs2,194.7 million, down 22.4% yoy
EBIDTA margins in FY09 at 30.3% as compared to 39.3% in FY08
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Equities
Market share on the NSE for the year under review has grown by 11% yoy to 3.76% as
compared to 3.40% in the previous year. Our average daily volumes for the equity business stood
at Rs22.37 billion as compared to Rs24.31 billion in FY08, a decrease of 8% yoy. Our broking
customer base grew by 36% to about 0.6 million customers at the end of FY09. Average daily
volumes in our commodities broking business were Rs2.63 billion for FY09 which was an
increase of 47% as compared to Rs1.80 billion in FY08.
Life Insurance Distribution
During 2008-09, the weighted annualized premium mobilized for ICICI Prudential, which
forms the dominant part of our Insurance distribution business, was Rs2.66 billion in FY09,
about 40% lower than that in the previous year 2007-08.
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Retail Consumer Finance
The total lending portfolio stood at Rs10.17 billion as at end March 2009, as against Rs9.37
billion last year. In view of adverse credit market conditions, we had scaled down origination of
fresh assets since September 2008. The non performing assets for the portfolio are less than 1%.
Wealth Management
In 2008-09, our wealth management business, has forged many new relationships. The
business has created a foothold in ten cities across four countries, driven strongly by its product
innovation.
Asset Management Business
During the third quarter of FY09, the company received the in-principle approval from SEBI
towards sponsoring a Mutual Fund. The company is now in the process of setting up a Trustee
company and an Asset Management Company.
The Board had earmarked Rs98.91 cr. towards this buyback through stock exchanges up to a
maximum price of Rs43.20 per share, i.e. total utilization of Rs10.80 cr. for buy back. As on
March 31st, 2009.
29
SELLING OF INVESTMENT PRODUCTS & SERVICES
OF
INDIA INFOLINE
PRODUCTS AND SERVICES
30
EQUITIES: India Infoline provided the prospect of researched investing to its clients, which
was hitherto restricted only to the institutions. Research for the retail investor did not exist prior
to India Infoline. India Infoline leveraged technology to bring the convenience of trading to the
investor’s location of preference (residence or office) through computerized access. India
Infoline made it possible for clients to view transaction costs and ledger updates in real time.
Service: Clients can access the customer service team through various media like toll-free lines,
emails and Internet- messenger chat for instant query resolution. The Companies customer
service executives proactively contact customers to inform them of key changes and initiatives
taken by the Company. Business World rated the Companies customer service as Best in their
survey of online trading sites carried out in December 2003.
features
Membership on the Bombay Stock Exchange Limited and the National
Stock Exchange
Registered with the NSDL as well as CDSL as a depository participant,
providing a one-stop solution for clients trading in the equities market
Broking services in cash and derivative segments, online as well as offline.
Presence across 350 cities and towns with a network of over 850 business
locations Equity client base of over 500,000 clients
Provision of free and world-class research to all clients.
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PORTFOLIO MANAGEMENT:
Our Portfolio Management Service is a product wherein an equity investment portfolio is
created to suit the investment objectives of a client. We at India Infoline invest your resources into
stocks from different sectors, depending on your risk-return profile. This service is particularly
advisable for investors who cannot afford to give time or don't have that expertise for day-to-day
management of their equity portfolio.
It is all about your money, being managed by the experts, while you continue with your
routine life. Isn't it simple and totally hassle free.
What's more, you can keep track of your dividends / bonus / rights issues with paperless
tracking. So you always know how fast your investment is growing. It basically means assigning
the right job to the right person.
Features
Expert team of Research Analysts
Stock Picking done by the Investment Committee
Dedicated Relationship Manager
Technology and Service driven Back-Office
RESEARCH:
IIL special research cell where some of India's finest financial analysts bring you intensive
research reports on how the stock market is faring, when is the right time to invest, when to
execute your order and more.
IIL make sure that investors are always prepared to make own investment decision when the
opportunity arises.
IIL bring you intensive research reports - whether sectoral or company-wise or more - that tell
you exactly when and where to invest. So whenever there is an exciting investment opportunity,
32
you are in the know and always ready to invest. Research reports IIL will help you choose your
investments wisely, without wasting time. Presented in a lucid and easy-to-understand format;
these reports help you make informed decisions.
COMMODITIES BROKING:
India Infolines extension into commodities trading reconciles its strategic intent to emerge as a
one stop solutions financial intermediary. Its experience in securities broking has empowered it
with requisite skills and technologies. Increased offering: The Companies commodities business
provides a contra-cyclical alternative to equities broking. The Company was among the first to
offer the facility of commodities trading in India’s young commodities market (the MCX
commenced operations only in 2003). Average monthly turnover on the commodity exchanges
increased from Rs 0.34 bn to Rs 20.02 bn. The commodities market has several products with
different and non-correlated cycles. On the whole, the business is fairly insulated against cyclical
gyrations in the business.
Features
Enjoys memberships with the MCX and NCDEX, two leading
Indian commodities exchanges
Recently acquired membership of the DGCX
Multi-channel delivery model, making it among the select few to
offer online as well as offline trading facilities
Extended commodity trading to retail investors, among the few
Indian financial intermediaries to do so
Online business at 80% of revenues dominates commodities trading
revenues
Provides regular commodity updates pertaining to the Indian and
international environment
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MORTAGAGES:
During the year under review, Indiainfoline acquired a 75% stake in Money tree Consultancy
Services to mark its foray into the business of mortgages and other loan products distribution.
The business is still in the investing phase and at the time of the acquisition was present only in
the cities of Mumbai and Pune. The Company brings on board expertise in the loans business
coupled with existing relationships across a number of principals in the mortgage and personal
loans businesses. Indiainfoline now has plans to roll the business out across its pan-Indian
network to provide it with a truly national scale in operations.
HOME LOANS:
Loan against residential and commercial property
Expert recommendations
Easy documentation
Quick processing and disbursal
No guarantor requirement
1. PERSONAL LOANS: Expert recommendations
Easy documentation
Quick processing and disbursal
No guarantor requirement
2. INVEST ONLINE:
India Infoline has made investing in Mutual funds and primary market so effortless. All
you have to do is register with us and that’s all. No paperwork no queues and No registration
charges.
If you are 5p customer use your existing login ID and Ledger (fund transfer) password.
India info line offers you a host of mutual fund and IPO choices under one roof; backed by
in-depth information and research to help you invest effortlessly.
34
3. INSURANCE:
An entry into this segment helped complete the client’s product basket; concurrently, it
graduated the Company into a one-stop retail financial solutions provider. To ensure maximum
reach to customers across India, we have employed a multi pronged approach and reach out to
customers via our Network, Direct and Affiliate channels. Following the opening of the sector in
1999-2000, a number of private sector insurance service providers commenced operations
aggressively and helped grow the market.
The Company’s entry into the insurance sector derisked the Company from a predominant
dependence on broking and equity-linked revenues. The annuity based income generated from
insurance intermediation result in solid core revenues across the tenure of the policy.
4. WEALTH MANAGEMENT:
The key to achieving a successful Investment Portfolio is to have a carefully planned financial
strategy based on a thorough understanding of the client's investment needs and risk appetite.
The IIFL Private Wealth Management Team of financial experts will recommend an appropriate
financial strategy to effectively meet your investment requirements.
Our Financial Advisor will analyze:
Your cash-flow requirements
Your risk appetite
Desired investment horizon
Long-term goals
5. NEWS LETTER:
The Daily Market Strategy is your morning dose on the health of the markets. Five intra-day
ideas, unless the markets are really choppy coupled with a brief on the global markets and any
other cues, which could impact the market. Occasionally an investment idea from the research
team and a crisp round up of the previous day's top stories. That's not all. As a subscriber to the
35
Daily Market Strategy, you even get research reports of India Infoline research team on a priority
basis.
The India Infoline Weekly Newsletter is your flashback for the week gone by. A weekly outlook
coupled with the best of the web stories from India Infoline and links to important investment
ideas, Leader Speak and features is delivered in your inbox every Friday evening.
List of News letter provide :
Daily Newsletters
Weekly Newsletters
Monthly Newsletters
Yearly Newsletters
Commodity Newsletters
Mutual Fund Newsletters
COMPETITORS
India Bulls Securities Ltd.
Reliance Money Ltd.
ICICI Direct.com
Share Khan.com
Angel Broking Ltd.
Motilal Oswal Securities Ltd.
Religare Securities Ltd.
Edelweiss
36
Why India Infoline
Paisa sense - Simple, we offer an unbeatable value for money proposition. Our brokerage
rates are rock bottom, we charge only 5 paise for Rs100 of trade done, which is 0.05%
brokerage. In the real world, brokers charge anywhere from 0.25% to 1.5% depending on your
net worth and traded volumes. While others talk about democracy, we practice it. We offer the
most competitive rates, independent of your net worth or volumes. In case of trades that result in
delivery, we charge an additional 0.20% for back office and securities handling.
Personalized Service - At India Infoline, we are committed to providing you with
unparalleled service, using e-mail, call centers and support staff. For us the customer comes first,
always and all times. We have invested in physical infrastructure also, so that you can use the
phone also to contact us. Please feel free to call us any time and our representative will help you.
If need be, our representatives will contact you in person to help you, either in filling forms or
answering any queries you might have.
Probity - In normal life, most brokers trade on their own account. This means that every time
you execute a trade through him, there is a potential conflict of interest. What if he executes his
personal trade before executing yours: you lose out. With India Infoline, you have no such
worries as we do not trade on our own account. We are a broker in the true sense of the word.
You may wonder that our employees may be biased and misuse information. No way, we
follow stringent compliance standards and every employee has to sign an agreement that forbids
him to trade without proper authorization. To ensure transparency, they have to use 5paisa.com
to trade and not any friendly neighborhood broker. This means that our interests are aligned - we
work for your best interest.
Protection - Most people are apprehensive about using the net to trade, primarily from fear
of misuse of information. The communications with our servers is fast and secure. All
transactions are secure and confidential. The orders are electronically routed via our
sophisticated trading systems for execution. We have followed world class security systems that
enable us to protect from any fraud or hacking. Even the user password would be generated by
the system and supplied such that, not even employees of India Infoline would know about it.
37
Also, it would be stored in our database in encrypted format so no one can know the actual
password. To be on a safer side you will be requested periodically to change your password.
Pedigree - We come from the India Infoline.com stable, known to produce thoroughbreds. A
brand renowned for quality of information and services, we are professionally managed, with a
skill set which is unbeatable. Our top management has years of experience in financial services
with leading banks and institutions. We believe that quality information is the only ingredient for
successful investments. On India Infoline, you will get company analysis, market commentary,
breaking news and scoops, stock market data and much more. We also have unlimited access to
India Infoline.com library.
TRADING TERMINALS
India Infoline offers 2 different online trading terminals to its customers
38
1. Trader Terminal (TT) Browser web based
2. Trader Terminal (TT) Advance
How to open Account with India Infoline
There are few steps to open an account with India Infoline.
1. First log on to their site and fill the registration form. Once you fill the form they will
give you 2 options. Either you can receive the form by mail or one of their agent visit you
personally. Personal visit is not available in all cities.
2. After registration, you will be required to deposit a certain amount of initial margin
deposit with them. The deposit can be of any amount, but it should not be less than Rupees Five
Thousand.
3. When your account is activated, you will receive a welcome kit, which contains details
about your account, your username and password, and the user's manual. The kit will also
include a CD ROM which will allow you to install trading software.
4. It will take approximately 15 days to complete the formalities if all the correct documents
are sent and the forms are correctly filled.
5. Documents required are 2 latest passport size photos, proof of identity and address i.e.
say electricity/ telephone bill, passport photocopies and PAN number.
Advantages of India Infoline
1. Very fast execution speed.
2. Rates are very competitive then other providers.
3. Easy online fund transfer facility from leading Banks including ICICI, HDFC,
CITI and UTI banks.
39
4. Free facility of subscribing to mutual funds, equity IPOs and other investment
products.
Disadvantages of India Infoline
1. Investing in IPO and Mutual Funds is not so easy like in ICICI Direct.
OTHER RELEVANT INFORMATION
India Infoline public issue gets 6.6 Times oversubscription.
India Infoline has been awarded as the ‘Best Broker in India’ by Finance Asia
magazine. This is an annual ritual conducted by the magazine for study of best financial
services firms in each country across Asia. The study was conducted from a period of 1
year from June 2007 to May 2008.
India Infoline Signs up with First Advantage for Verify Direct. The Employer
Services segment of First Advantage Corporation (NASDAQ: FADV), Asia-Pacific's
largest background screening and talent acquisition solutions provider, today announced
that India Infoline has become the first company to sign up for Ver.
The company also won the Golden Mouse Award in India Internet World
2000 for the Best Finance site.
Our website was included in the Top 200 Best of the Web list by Forbes Global
under the Asia Investing category.
The Company was among the first to offer the facility of Commodities Trading in
India’s young commodities market.
A forerunner in the field of equity research, India Infoline’s research is
acknowledged by none other than Forbes as ‘Best of the Web’ and ‘…a must read for
investors in Asia’.
40
In a poll conducted by Asia Money, we were adjudged as the ‘Most Improved
Brokerage’ in India.
India's Best Websites
The first annual Business Barons - TNS mode Internet-user opinion poll indiamarkets.com has been
rated the no. 1 B2B site by the first annual Business Barons -TNS MODE Internet-user opinion poll in the
Business Barons October 31 2000 issue. In a survey that conducted an opinion poll among regular
Internet users to gauge the most popular websites across eight subject segments, India markets was the
only B2B site among the top ten Business/Personal Finance portals in terms of aided awareness.
indiamarkets.com was rated third under the Business/Personal Finance segment with an aided
awareness of 24% amongst the respondents, the top two being Indiainfoline.com and Sharekhan.com.
Indiainfoline.com and Sharekhan.com are predominantly finance portals, thus making indiamarkets.com
the best under the Business segment.
Aided Awareness
1. indiainfoline.com 37%
2. Sharekhan.com 30%
3. indiamarkets.com 24%
Base: All (509)
Websites visited in the last 3 months
1. indiainfoline.com 15%
2. Sharekhan.com 11%
3. indiamarkets.com 9%
Base: All (509)
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Websites ever visited
1. India Infoline.com 17%
2. Sharekhan.com 13%
3. indiamarkets.com 10%
Base: All (509)
Frequency of visits
Average frequency once in ... days
1. indiainfoline.com 12.4
2. Sharekhan.com 8.5
3. indiamarkets.com 11.2
Base: Those visiting in the last three months
Average time spent per visit
42
1. indiainfoline.com 49.7
2. Sharekhan.com 51.3
3. indiamarkets.com 65.3
4. Capitalmarkets.com 21.4
5. indiabazar.com 94.8
6. indiabulls.com 112
7. indiatrade.com 91.1
8. myris.com 75.2
9. walletwatch.com 19.5
Base: Those visiting in the last three months
Frequency of visits
Average frequency once in days
1. indiainfoline.com 12.4
2. Sharekhan.com 8.5
3. indiamarkets.com 11.2
4. Capitalmarkets.com 5.6
5. indiabazar.com 9.2
6. indiabulls.com 9.5
7. indiatrade.com 9.2
8. myris.com 17.4
9. walletwatch.com 8.6
Sites most liked
1. India Infoline.com 24%
2. Sharekhan.com 22%
3. indiamarkets.com 14%
Base: Those ranking 1 (169)
REVIEW OF LITERATURE
43
People are not much aware of commodity market and while it’s going to be biggest market in
India.
A key challenge for a brokerage firm is to decide which customer segments to target, which
in turn has important implication for product positioning and pricing
There is substantial variation in investing in investment knowledge and experience across
different individual investors.
These investors don’t value extra services or research tools; they are looking for rock bottom
prices.
Empowered with information, investors demand a tailor-made brokerage product at the
lowest possible price and are unlikely to be loyal at any one provider.
The drawback of the old system and the pool proof measures sought to improve efficiency in
transfer and transparency standards prompted to evaluate the functioning of the dematerialization
process and to focus on the development of the depository system in the Indian Capital Market.
The clients were attended as and when appointments were taken. The appointment are from
different areas, it would have better if the appointment were been taken area wise.
The company should also organize seminars and similar activities to enhance the knowledge
of prospective and existing customers, so that they feel more comfortable while investing in the
stock market.
44
RESEARCH METHODOLOGY
Objective Of Research
Each research study has its own specific purpose. It is like to discover to Question through
the application of scientific procedure. But the main aim of my research to find out the truth that
is hidden and which has not been discovered as yet. My research study has two objectives
PRIMARY OBJECTIVE:- How India Infoline Ltd is best services providers as a stock
broker in the NCR region.
SECONDARY OBJECTIVE:-
1. To know about the awareness towards stock brokers and share market.
2. To study about the competitive position of India Infoline Ltd in Competitive Market.
3. To study about the effectiveness & efficiency of India Infoline Ltd in relation to its
competitors
4. To study about whether people are satisfied with India Infoline Services & Management
System or not
5. To study about the difficulties faced by persons while Trading in India Infoline.
6. To study about the need of improvement in existing Trading system.
TYPES OF RESEARCH
On the basis of theoretical study a research has many types. All of these are distributed on the
nature of research. Some of these are like
1. Descriptive and Analytical
2. Qualitative and Quantitative
3. Conceptual and empirical
4. Applied and fundamental
5. One time research
My research is based on Descriptive, Qualitative and Quantitative research.
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Descriptive Research:-
Descriptive research includes surveys and fact finding enquires of different kinds. The major
purpose of descriptive research is description of the state of affairs as it exists at present.
Researcher has no control over the variables of this type of research.
Qualitative Research:-
In my research I need comparison between different stock brokers. So this based on all
qualitative data. In short, Qualitative research is especially important in the behavioral sciences
where the aim is to discover the underline motives of human behavior. Through such research I
can analyses various factors which motivate to people to behave in a particular manner or which
make people like or dislike a particular thing.
Quantitative research:-
Quantitative research is based on the measurement of quantity or amount. It is applicable to
phenomena that can be expressed in terms of quantity. So I can use it in our research for
collection of all the numerical data.
SAMPLE DESIGN:-
“A sample design is a definite plan for obtaining a sample from a given population. It refers
to the technique or the procedure the researcher would adopt in selecting item for the sample”
Generally Sample designs are two types
1. PROBABILITY RESEARCH DESIGN
2. NON PROBABILITY RESEARCH DESIGN
I used the probability research design.
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SAMPLING UNITS:-
Sampling unit may be a geographical one, such as state, district, village etc. The researcher
will have to decide one or more of such units that he has to select for his study.
In my research study NCR as a sampling unit.
SIZE OF SAMPLE:-
“This refers to the number of items to be selected from the universe to constitute a sample”
In my research sample size is 100.
But I also study the 5 stock broker companies related to security & commodity market like
Share Khan, ICICI direct, Religare, India Bulls for the appropriate collection of the information.
SOURES OF DATA COLLECTION:-
While deciding about the method of data collection to be used for the study the researcher
should keep to types of data.
1. Primary
2. Secondary Data.
I use in my research primary data, as well as secondary data. Primary means collected a
fresh, and the first time data and secondary means which are already available like annual report,
magazines etc.
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Survey Method:-
Survey refers to the method of securing information concerning phenomena under study from
all or selected number of respondents of the concerned area. In a survey the investigator
examines those phenomena which exist in the universe independent of his action. I used the
Scheduling Method.
Scheduling:-
In this method the enumerators along with schedules, go to respondents, put to them the
questions from the Performa in the order the questions are listed and recorded the replies in the
space meant for the same in the Performa.
Limitations:-
Size of the research may be substantial.
There was lack of time and information on the part of the respondents.
The survey was carried out on the basis of questionnaire and the questions were based on
perception.
There may be biasness in information by market participant.
Complete data was not available due to company privacy and secrecy.
Some people think that Shares are too risky and just another name of gamble but they
don’t know it’s not at all risky for long term investors.
Since most of the people are quite experienced and also they are not techno savvy. Also
internet penetration is poor in India.
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ANALYSIS AND FINDINGS
After the whole study, I find out the following results
Results on the Basis of charges
There are the two type of the transaction:-
1. Intra-day based
2. Delivery based
All the figures are in paisa/100 rupees.
Comment:- According to the survey HDFC securities charge maximum brokerage as
compare to others whereas India Infoline Ltd. charge only 0.20 paisa on maximum investment.
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Results On the basis of Account opening charges
ShareKhan ltd:- There is no ACCOUNT OPENING CHARGES but require margin money
of Rs 5000 for trading purposes.
ICICI direct:- A one-time charge of Rs. 750 at the time of account opening will be charged.
You may later upgrade your Invest account to an ICICI direct.com share trading account when
you desire to trade in equity.
India Infoline:- There is a nominal charge of Rs. 500 only towards stamp duty, legal and
processing fees for opening the account. This includes the registration and account opening
charges. Bank and Depository Participant (DP) account opening charges, if applicable, are
payable separately.
India bulls:- Account opening charges are Rs. 900. There is no AMC and no margin money
is required.
Reliance Money:- Account opening charges are Rs. 900. There is no AMC and no margin
money is required.
Comment:- India Bulls charge maximum account opening charges but there are no such
charges in ShareKhan Pvt. Ltd.
Results on the Basis of Facilities
Basis of
Difference
India
Infoline
Religare Indiabulls ICICI Edelweiss
Share
Trading
Yes Yes Yes Yes Yes
Commodity
Trading
Yes Yes Yes No Yes
D-Mat
Opening
Rights
Yes Yes Yes Yes Yes
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Analysis and Interpretation
Q1. What is your age group?
According to the survey, maximum numbers of people belong to the age group of 20-35
years. So we can say that the most aforesaid respondents will be willing to take risk and make
investments in the market instruments with moderate risk.
Q2. What is your occupation?
51
50% of the respondents belong to the category of salaried employees, and 15% of the
respondents are into Business. Further 25% of the responds are self employed and remaining
10% are from other occupations.
Q3. Under Which range you’re Income Falls?
The graph above depicts the income range of the respondents. The income range of the
maximum 55% respondents lie in the 10000-25000 categories whereas only 20% respondents
income falls in the category of 0-10000. And 25% respondents are earning 25000<.
Q4. Are you aware about capital market?
Respondents with in age group 20-35 have 26% awareness about the capital market, this is
highest number of percentage who is aware about the capital market and 19% have no idea about
capital market. This is most risk taking category, so company should focus on this category.
52
Respondents with in age group 35-45 have 14% awareness and 45-60 have 11% awareness at
the same time respondents have no awareness about capital with in age group 35-45 is 11% and
45-60% is 7%. This is moderate category who invests in stock market.
Awareness with in age group 60< is 7% and respondents have no awareness in this category
is 5%, this is the least number of percentage. This is no risk taking category.
Q5. Which Financial instrument do you prefer for investment?
17% respondents who are aware about the capital market they are ready to invest in stocks
and this are approx. double of that category that is aware about the capital market but not ready
to invest in stocks.
Respondents who are aware about the capital market and those respondents who are not
aware the capital market has same percentage when they invest in Bonds.
22% respondents those are aware about the capital market invests in Insurance and MFs. And
25% those are not aware about the capital market. That shows people think that Insurance and
MFs is less risky investment in compare of stocks.
Respondents have same approach to invest in other financial instrument like FDs and Post
Offices.
Q6. Do you invest in stock market and what is your understanding and comfort level in
stock market?
53
Respondents those are not invest their money in the stock market they have no experience
and comfort level with stock market i.e. 29%. 9% respondents those are investing in the share
market think that they have no exp. and comfort level and their investment decision is influenced
by broker’s advice.
Respondents those are investing and those are not investing in the stock market have same
number of percentage when they have no exp. but they have some comfort level with stock
market.
Respondents those are investing have 10% reasonable exp. and comfort level but at the same
time respondents those are not investing have 7% comfort level i.e. the company can attract these
kind of the people easily.
54
Q7. What factors motivate you to invest in Securities?
20% respondents those are aware about the capital market they are looking for instant
liquidity in the capital market and same percentage of respondents are looking for good returns
from the capital market. But at the same time 10% people are ready to invest their money in
IPO’s.
Large number of respondents i.e. 23% those are not aware about the capital market is looking
for good return in the capital market.
Q8. Do you have Demat and Trading Account?
55
Respondents with in age group 20-35 have large number of Demat account i.e. 30%. That is
double those don’t have Demat account with in the same age category.
15% respondents with in age group 35-45 have Demat account and 10% respondents with in
age group 45-60 have Demat account. That’s show people are more willing to take risk with in
age group 20-35.
Q9. Which brokerage firm do you prefer for online trading?
27% respondents are showing interest in Reliance Money that is highest number of
percentage out of 100 respondents. Out of 27 14 are aware about the capital market and 13 are
not aware about the capital market. This is because reliance is giving lowest brokerage rates in
the industry.
21% respondents think that India Infoline is better option for them out of 21% 57% are aware
about capital market and 43% are not aware about capital market.
10% respondents those are aware about capital market will prefer share khan and ICICI for
trading and 9% respondents don’t aware about the capital market will prefer Share Khan and
ICICI.
Q10. How often you trade?
56
20% respondents within 10000-25000 income groups are trading on the daily basis. That
shows they are more willing to take risk for their income. And 15% are trading on the monthly
basis.
Q11. What % of your savings do you invest in share trading?
30% respondents with in income level 0-10000 invest their 0-5% savings in share trading i.e.
highest out of total 100 respondents. Their investment within 6-10% and 11-20% is approx.
same. But this number is very less i.e. 2 when investment is more than 20% of their savings.
5% Respondents those income is more than 25000 Rs/Month are investing their 20% savings
in share trading i.e. highest out of 100 respondents.
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12% Respondents with in income group 10000-25000 is investing their savings in share
market within 6-10% and they are investing their 11% savings within 11-20%.
Q12. Your Investment decision influenced by?
22% respondents within age group take their decisions on theirs or we can say they are more
willing to take risky decision for their investment on their self. And their decision is depend on
their brokers advice is only 11%.
9% respondents more than 60 ages take their decisions on their broker advice i.e. highest out
of 12 respondents that’s shows they are not more willing to take their investment decisions on
their self and they are not depend on micro and macro policies.
11% respondents within age group 35-45 take their decisions on theirs and 10% respondents
within same age group on broker’s advice. That’s show they are moderate on their decisions and
broker’s decisions.
8% respondents within age group take their decisions on change in micro policies i.e.
changes in monetary policies and government policies. And 4% taking decisions on the basis of
change in macro policies. This is the highest number of respondents those are taking their
decisions on change in micro & macro policies.
Q13. What differentiates your trading company from others?
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17% respondents those have demat account think that brokerages charges is more important
for their trading and there is difference on the basis of this brokerage charges with their company
and at the same time 9% respondents are denying that brokerage is don’t matter which is also the
highest within 39 respondents those don’t have demat account.
11% respondents those have demat account think that research report and dialup trade
facilities are basis of difference with their company to other companies. And 10% respondents
think that account opening is also important.
8% respondents out of 100 respondents think that exposure create difference with their
company to other companies and same number of respondents think that exposure is not
necessary for the comparison of two companies.
Q14. According to your preferences rank the attributes of a Stock Trading Companies?
Company Proper
Guidance
Customer
Services
Regular
Updates
Product
Quality
Average Overall
Ranking
India
Infoline
3.33 3.01 3.03 3.79 3.29 3.07
ICICI 3.08 2.78 2.5 3.01 2.8425 3.01
India
Bulls
3.25 3.07 2.98 3.23 3.1325 2.91
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Religare 3.39 2.97 3.02 3.60 3.245 2.95
Share
Khan
3.22 3.02 3.01 3.67 3.23 3.09
In this table firstly, I rank the companies; the overall ranking of each attribute on the basis of
100 samples is given in the table as above.
Secondly, I collect all the information about these companies. How customers think these
attribute of this company should be rank on this level out of 5. The overall result average of 100
respondents is given above in the table.
Findings out of this table are as follow:
1st We can analyze the average of all attributes and overall result is that India Infoline is on
the top followed by Share Khan on second rank. ICICI have the last ranking according to my
analysis.
2nd We can analyze the overall ranking of the companies; India Infoline is on third rank in the
overall ranking. Share Khan is on the top in overall ranking and it is followed by ICICIDirect.
3rd We’ll calculate how companies are better than others on the basis of average of different
services and overall ranking;
Company Proper
Guidance
Customer
Services
Regular
Updates
Product
Quality
Total
India
Infoline
3.33*3.07
=
10.2231
3.01*3.07
=9.2407
3.03*3.07
=9.3021
3.79*3.07
=11.6353
40.4012
ICICI 3.08*3.01
=9.2708
2.78*3.01
=8.3678
2.5*3.01
=7.525
3.01*3.01
=9.0601
34.2237
India Bulls 3.25*2.91
=9.4575
3.07*2.91
=8.9337
2.98*2.91
=8.6718
3.23*2.91
=9.3993
36.4623
Religare 3.39*2.95 2.97*2.95 3.02*2.95 3.60*2.95 38.2990
60
=10.0085
=8.7615
=8.9090 =10.6200
Share Khan 3.22*3.09
=9.9498
3.02*3.09
=9.3318
3.01*3.09
=9.3009
3.67*3.09
=11.3403
39.9228
From this table we can easily analyze which brokerage firm is better than others and on what
basis.
India Infoline is on the top in overall ranking and Share Khan is on the Second rank.
After analyzing this table any firm can find where it can improve its customer services and to
gain competitive advantages over the other companies.
And from this table we can analyze that customers are more attracted towards Product
Quality. So companies should try to improve their product quality.
SUGGESTIONS
1. The mantra for success in the current situation will be educating the customers about the
benefits of online trading and the amount of ROI (Return on Investment) that can be generated
through it.
2. A key challenge for a brokerage firms is to decide which customer segments should be
targeted, which in turn has important implication for product positioning and pricing. So
companies should target their customers.
3. Empowered with information, investors demand a tailor made brokerage product at the
lowest possible price and are unlikely to be loyal at any one provider.
4. The companies should look after to develop more safe and secure ways of transacting
business.
5. The companies should make maximum efforts to deduct fraud cases and minimize them.
And try to create a good value in the eyes of the customers.
6. The companies should come with more and more innovative features in their web portals.
7. There should be a limited number of clients under the relationship manger. So that he can
handle new as well as old customer properly.
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8. People at young age should be encouraged to invest in stock market.
9. There should be a limited number of clients under the relationship manger. So that he can
handle new as well as old customer properly.
LEARNING
The two month summer training was a good experience for me to learn the practical aspects
of the Corporate Life. Some of the learning of mine are:
I improved my communication skills by learning how to talk to different kind of people
as it requires the different approach to handle each person.
I learnt to how handle the pressure under difficult situation.
I became aware about various aspects of working of stock exchange.
I learned about the consumer perception about the stock market and online trading.
Patience was the thing I learnt the most as I have to approach the clients who were to be
explained same things again while approaching or calling them at regular intervals.
As my work included the sales, I learnt some of the ground rules of selling financial
product.
I also found that it is very important to build a relationship with a client as it brings more
business.
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CONCLUSION
The online trading is growing with a rapid pace with the rising level of education among the
customers. The other factors being that the Indian investors nowadays want to deal themselves in
trading rather than depending upon other middlemen.
Investors are increasingly finance-savvy, due to the proliferation of investment-related
information in newspaper, magazines; cable television and last but not least, the internet. Still
there is substantial variation in investment knowledge and experience across different individual
investors.
Some people feel that online trading is not secured but the people doing the trading online is
happy about the increasing security concerns among the companies.
The year 2008 has not been so good for the stock market and the Sensex and the Nifty has
been dipping and affecting the business negatively for these companies. This is due to the fact
that at these times people don’t prefer to open the Demat and Trading account. So the companies
have to reduce their account opening fees to attract the more and more customers.
There is an intense competition among the companies and the companies coming up with
new and new promotion schemes such as discounted and negotiable brokerages, zero balance
accounts, waving account opening fees and AMC etc.
On the basis of the study it is found that India Infoline Ltd is better services provider than the
other stockbrokers because of their timely research and personalized advice on what stocks to
buy and sell. It also provides the information through the internet and mobile alerts that what
IPO’s are coming in the market and it also provides its research on the future prospect of the
IPO.
Study also concludes that concludes that people are not much aware of commodity market
and while it’s going to be biggest market in India.
Study also conclude that people investment decision is influenced by their self and then on
the advice of their brokers. Very less no of people thinks what’s happening in Micro and Macro
Policies.
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BIBLIOGRAPHY
This assignment has used references extensively from the internet and various news papers,
magazines and last not the least company’s reports. In addition to all of these some are below
which forms the central idea behind the project.
Books:
Philip kotler, Marketing Management, 13en edition
Rejendra Nargundkar, Market Research, 3rd edition
Publications:
Securities Market [Basic] Module - NCFM
Economic Times
Times of India
Investment Manager
Research Report:-
‘Comparative Analysis of Stock Brokers in Chandigarh Region’ by Vijay Rana, 2008
‘Study of Dominant Players in E-Broking’ by Ashish Sharma, 2008
‘Analysis of Stock Market in ICICI Direct’ by Ramnjot Singh, 2007
‘Comparative Study on Share market and Mutual Fund’ by Rohit Kumar, 2007
‘Stock Market and Inflation at Share Khan Ltd’ by Lokesh Swami, 2008
‘Competitive Analysis at Reliance Money’ by Ankush Bains, 2008
‘Competitive Analysis in Religare’ by Jitendra Tomar, 2007
‘Growth and Development of online Trading in India’ by Vishal Sharma, 2008
‘The Market of Indiabulls in context to its competitors, potential investors and Marketing
Strategy’ by Vijay P. Aggarwal & Chander Prakash, 2008
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Websites:
http://www.moneycontrol.com
http://www.livemint.com
http://www.google.com
http://www.nseindia.com
http://www.bseindia.com
http://www.indiainfoline.com
http://www.5paise.com
http://www.icicidirect.com
http://www.sharekhan.com
http://www.demataccount.com
http://www.indiahowto.com
http://www.slideshare.com
http://www.sharemarketbasics.com
http://www.iloveindia.com
hsttp://www.moneymarket.com
http://www.corporateinformation.com
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APPENDIX
Subject: Comparative Study of India Infoline
NAME
OCCUPATION
AGE
CONTACT NO.
INCOME
[Rs. Per Month]
1. 0-10000
2. 10000-25000
3. Above 25000
1. Are you aware about capital Market?
(a) Yes (b) No
2. In which of these financial instruments do you invest into?
(a) Stocks (b) Bonds
(c) Insurance & Mutual Funds (d) Others
3. Do you invest in stock market?
(a) Yes (b) No
4. Rank your understanding and comfort-level with investing in the stock market.
a) No experience and no comfort level in investing in stocks
b) No experience, but some level of comfort in stocks
c) Reasonable experience and comfort level with stock market
d) Some experience, and interest in stock market investing
e) Extensive background and understanding of stock market
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5. What factors motivate you to invest in securities?
(a) IPO’s (b) Instant Liquidity
(c) Good Return’s (d) others
6. Do you have De-mat & Trading Account?
(a) Yes (b) No
7. Which brokerage firm do you prefer for online trading?
(a) India Infoline (b) Share Khan (c) ICICI
(d) India Bulls (e) Reliance (f) Others
8. What differentiates your stock trading company from others? [Mark Any 2]
(a) Brokerage (b) Research Report (c) Dialup Trade facilities
(d) Exposure (e) A/C opening charges (f) others
9. How often you trade?
(a) Daily (b) weekly (c) Monthly
(d) Quarterly (e) Yearly
10. What percent of your savings do you invest in share trading?
(a) 0 – 5 % (b) 6 – 10 %
(c) 10 – 20 % (d) Above 20%
11. Your investment decision influenced by?
(a) Your Self (b) Broker
(c) Micro Policies (d) Macro Policies
12. Rank these share trading companies according to the quality of services they provided.
1. 2. 3.
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1 = Excellent 6 = Very A. India InfolineB. Share KhanC. ICICID. India BullsE. RelianceF. Others (Please Specify)
4. 5. 6
13. According to your preferences rank the attributes of a stock Trading Companies.
Company Proper
Guidance
Customer
Services
Regular
Updates
Product
Quality
India Infoline
Share Khan
ICICI
India Bulls
Reliance
14. What additional features do you wish to have in online share trading?
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5 = Very Good 1 = Very