report on mutual fund analysis

7/28/2019 report on mutual fund analysis

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ALive Research Project

On

Portfolio Management & Mutual Fund AnalysisAt

Greshma Shares & Stocks Ltd.Udaipur

Submitted to theRajasthan Technical University, Kota

For thePartial Fulfillment of the Requirement for the Degree of

Master of Business Administration2010-2012

: :

(

PACIFIC BUSINESS SCHOOLP.B.-12 Pacific Hills, Airport Road, Pratap Nagar Extension,

DebariUdaipur-313024(Raj.)


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DECLARATION

I hereby declare that this Live Research Project Titled A STUDY ON PORTFOLIO MANAGEMENT &

MUTUAL FUND ANALYSIS submitted by me to the department of business management, Rajasthan

Technical University, Kota is a bonafide work undertaken by me & it is not submitted to any other university

or institution for the award of any degree/diploma/certificate or published any time before.


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PREFACE

The objective behind the Live Research Project of MBA Programme is to provide the practical

aspects of the organizations and environment. This Project helps to visualize and realize about the

congruency between the theoretical learning in the premises of college and the actual practices of

management and working behind followed in the organization. It gives the knowledge of how to

apply the theoretical learning in the classroom to the actual situation when faced in an organization.

It is important to get acquainted with the practical day to day situation in organization.

The Live Research Project at Greshma Shares & Stocks Ltd. is a complete experienced in itself,

which has provided me with the understanding, which has become inseparable part of my knowledge

of management being learned in the MBA programme. For successful completion of project, manypeople directly or indirectly helped me a lot, I thank each of them for there sincere effort.


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ACKNOWLEDGEMENTS

I express my sincere thanks to my Live Research Project guide, Prof. B. P. Sharma (Director ofPacific Business School, Udaipur) commodity department for guiding me right from the inception tillthe successful completion of the project. I would like to express my sincere gratitude to Mr. SuvinyaSharma, a qualified Chartered Accountant and Mr. Charul Shah, a Certified Financial Planner forgiving opportunity to undergo this lucrative project with Greshma Share & Stock Ltd., Udaipur.

I am extremely thankful and obliged to Assistant Prof. Sourya Ranawat (Internal Project Guide) forproviding streamed guidelines since inception, till the completion of the project. I would also thankGreshma Share & Stock Ltd. employees and customers, whom I met during the course of this projectfor their support and for providing valuable information, which helped me, complete this projectsuccessfully.

This Live Research Project is a collective effort of all and I sincerely remember and acknowledge allof them for their excellent help and assistance throughout the project.


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TABLE OF CONTENTS

S.No. Particulars Page No.

1 Executive Summary 1

2 Industry Profile 3

3 Company Profile 26

4 Product Profile 34

5 Research Methodology4.1 Study of Research Methodology4.2 Research Objective4.3 Research Methodology Used4.4 Sample Size and Methods

of Selecting Sample4.5 Limitation of Study

6 Fact & Finding

7 Analysis and Interpretation 38

8 Ideal Portfolio 45

9 SWOT Analysis 47

10 Conclusion 49

11 Suggestions 51

12 Appendix : Questionnaire 53

13 Bibliography 56


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EXECUTIVE SUMMARY

The project titled Portfolio Management & Mutual Fund Analysisbeing carried out for Greshma

Shares & Stock Pvt. Ltd. Udaipur operates in various financial products and services like Consultancy,

Stock Broking, Mutual Fund, Insurance, Commodities, Registrar and Transfer Agent, Research etc. The

evaluation of financial planning has been increased through decades, which is best seen in customer rise. Now

a days investment of saving has assumed great importance.

According to the study of the markets, it is being observed that in near future a proper financial planning is

required to invest money in all type of financial product because there is good potential in market to

invest.Also the fact contributes to the cause that interest rates on fixed deposits are decreasing over a period of

time, which make people think about other investment avenues available to get more returns from their

money.

In this project, great emphasis is given to the investors mind in respect to t otal financial planning the needs

and wants of the client is taken into consideration also to know the investing pattern of people in different

Financial Products.People are more conscious about investing their money. Now a day, they are more

investing in share market, gold, real estate. They are investing in these areas because they think that these

have good area to invest as well as the return from these after a certain period of time lets say 5 years will be

more than investing in insurance or provident fund or bank deposits.

I hope Greshma Capital, Udaipur will recognize this as well as take more references from this project report.

All sectors has been given equal emphasis for the study of the project because it is the only sector where alltype of Age group, Income class and different level of people are represented. After analyzing the feedback

the conclusion has been made that the Indian financial market is having lots of potential customer the only

thing is to give a proper guidance to the prospective customer


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INDUSTRY PROFILE

2.1 STOCK BROKING SCENARIO IN INDIA

2.1.1 Indian Economy- An Overview

The Indian securities market is emerging from the slowdown that has affected all markets. The fundamentally

sound situation show that the Indian economy continues to experience promises a rosy future for domestic and

international investors. The capital market is one of the most vibrant sectors in the financial system, making

an important contribution to the countrys economic development.

The centre for monitoring Indian Economy has scaled down its GDP forecast by a notch to 7.8% for this fiscal

from the earlier forecast of 7.9%. A sharp downward revision in the forecast for the mining index from 4.4%to 3.2%, manufacturing sector from 7.5% to 6.9% & electricity from 9% to 8.7% has led to a further decline in

our GDP forecast for this fiscal from 7.9% earlier to 7.8%,its monthly report here.

Earlier, the reserve bank had also reduced its forecast for real GDP growth sharply from 8% to 7.6%. The

rating agency crisil has also revised its growth estimate from 7.7-8% to 7.6%. The index of industrial

production growth has slowed down to 2-4% & the wholesale price index-base inflation growth has remained

riveted to 9.5% despite sustained efforts by the RBI to rein in inflation by raising interest rates, the agency

cited as its reasons for the sharp downturn in the economic growth.

2.1.2 Broking Industry Overview

The fundamental of Indian Economy were strong and blamed the global turmoil for the sharp correction in

the Indian stock market.Indias growth fundamentals are strong they look more attractive in a world

confronting problems.The BSE benchmark Sensex droped 587 points in intraday trade before recovering to

close 365 points lower at 15699.97 a two year low.

market have crashed because of continuous withdrawal of funds by FIIs. Euro Zone crisis will decide market

course in which the market edged downwards last week, losing 4.13% & touching a two year low to close at15695.The nifty lost 3.99% to end at 4710. The crisis has impact on the rupee, with the currency depreciating

18% this year. The below expectation 3rd Quarter US GDP growth of 2% against initial estimates of 2.5% &

indications of a sharp correction in chinas growth plunged indices in the red across the globe.

Although the flow of overseas investment in India equities markets has slowed, it continues to be positive.In

the past six decades sessions, foreign institutional investors (FIIs) have withdrawn $623 million from the

equity markets .Total FII inflow was $634 million in October-11 & FII pumped in $213 million in November-

11 so far. RBI is closely monitoring the situation and will do the needful as required finance minister said in

response to the rupee depreciation. The decline in rupee is a large a result of whats happening in the globalmarkets. The rupee touched an all-time low of 52.73 against the US Dollar but recovered to 52.32 a Dollar.


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2.1.3 Growth of Stock Broking industry

Capital markets all over the world are witnessing major changes. With escalating interests of domestic and

international players in India, there is an increasing demand for a more systematic approach. SEBI is also

trying to bring transparency in the dealings. Economic growth and liberalization has opened number of

opportunities in various organizations like mutual funds, investment consultancy, broker firms, insurance

companies, merchant banks, pension funds and other financial institutions.

Foreign institutional investors, mutual funds and even individuals have once again started posing confidence

in the capital markets. This has enhanced prospects for brokers, investment and equity analysts. They can also

start their own consultancies. Stock exchanges to some extent play an important role as indicators, reflecting

the performance of the countrys economic state of health.

There are three main factors behind the changes in the stock-broking business. This brought transparency into

trade execution and raised the confidence of investors. The result has been lower transaction charges andincreased convenience. This has helped both the investors and the brokers. The second change was

dematerialization. Before this, buying or selling shares was a difficult matter. Even when an investor bought

shares, he was not sure whether they would be transferred in his name. But now these concerns are no longer

there. The introduction of futures and options was the third major factor that has changed the face of the stock

broking business, as it is a new avenue for revenue.

2.1.4 Development of Stock Broking industry

An important early event in the development of the stock market in India was the formation of the Native

Share and Stock Brokers Association at Bombay in 1875, the precursor of the present-day Bombay Stock

Exchange. This was followed by the formation of associations /exchanges in Ahmadabad (1894), Calcutta

(1908), and Madras (1937).

In order to promote a more orderly development of the stock market, the central government introduced a

legislation called the Securities Contracts (Regulation) Act, 1956. Under this legislation, it is mandatory on

the part of stock exchanges to seek government recognition. As of January 2002 there were 23 stock

exchanges recognized by the central Government.

Even as a debate continues over the relative advantages of stock market overbanks in financing

investments on the one hand and of corporates preference for internal resources versus external sources on

the other, and the stock markets ability to monitor corporate managements due to several factors, developing

countries have been advised by the multilateral bodies to foster stock markets. Besides allocatingresources

efficiently, developing countries have been told that stock markets will enable them implement their

privatisation programmes and attract portfolio capital flows. Foreign portfolio investments are in turn likely

to deepen the stock markets and contribute to greater stability, especially investment done by investment

funds that specialize in emerging markets and which are backed by international experience and

extensive research. Their operations are expected to enable corporate to raise resources cheaply by pushing

up the price-earning ratios. In order to attract foreign investors, while business entities areforced toimprove

accounting and reporting standards the authorities are expected to upgrade the trading and delivery


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standards which again help improve the functioning of stock markets. The emphasis on portfolio capital

flows is also in line with the official development assistance yielding place to flows on private account.

2.2 Portfolio Management


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2.2.1 WHAT IS PORTFOLIO MANAGEMENT? :

An investor considering in securities is faced with the problem of choosing from among a large numberof securities. His choice depends upon the risk return characteristics of individual securities. He wouldattempt to choose the most desirable securities and like to allocate his funds over this group of securities.Again he is faced with problem of deciding which securities to hold and how much to invest in each. Theinvestor faces an infinite number of possible portfolios or groups of securities. The risk and return

characteristics of portfolios differ from those of individual securities combining to form a portfolio. Theinvestor tries to choose the optimal portfolio taking into consideration the risk returnCharacteristics of all possible portfolios.

Portfolio management involves deciding what assets to include in the portfolio, given the goals of the

portfolio owner and changing economic conditions. Selection involves deciding what assets to purchase, how

many to purchase, when to purchase them, and what assets to divest. These decisions always involve some

sort of performance measurement, most typically expected return on the portfolio, and the riskassociated with

this return (i.e. the standard deviation of the return). Typically the expected return from portfolios of different

asset bundles is compared. The unique goals and circumstances of the investor must also be considered. Some

investors are more risk averse than others. Mutual funds have developed particular techniques to optimize

their portfolio holdings.

2.2.2Portfolio Management Process

We have designed our Portfolio management process with the client in mind. This is by no

means an inflexible, mechanical assembly line but rather a consultative process and an

approach, which puts the client centre-stage.

Fig: Portfolio management process
http://en.wikipedia.org/wiki/Expected_returnhttp://en.wikipedia.org/wiki/Riskhttp://en.wikipedia.org/wiki/Standard_deviationhttp://en.wikipedia.org/wiki/Risk_aversionhttp://en.wikipedia.org/wiki/Mutual_fundhttp://en.wikipedia.org/wiki/Mutual_fundhttp://en.wikipedia.org/wiki/Risk_aversionhttp://en.wikipedia.org/wiki/Standard_deviationhttp://en.wikipedia.org/wiki/Riskhttp://en.wikipedia.org/wiki/Expected_return


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Client Assessment

The starting point in our process is to create a profile of investors, covering investors

pe rsona l de tail s, cur rent financi al si tua tion and family circ umstances.

It's a simple discussion where we do more listening than talking. We work on the principle

that the more detail we get at this stage, the better our understanding of investors needs which

will enable us to stay relevant and deliver genuine added value goi ng forward.

Investment Strategy

A clear understanding of your investment objectives and risk tolerance is at the core of our

investment process. How could we possibly make responsible and suitable investment

recommendations for anyone without fully understanding the context? This is probably the

most unglamorous stage of the process, but it may also be the most important.

We aim to generate a clear statement of your investment objectives which in turn leads to an

equally clear definition of the asset allocation/investment strategy to be pursued. At this

stage, we also agree the broad parameters by which our relationship will be governed (i.e.

restrictions, limitations, service level, costs). We educate you regarding the tradeoffs between

risk and reward, the investment environment and the forces that may impact on your

investments .


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Fig: Investment strategy

Asset Allocation

This stage of the process is all about getting the balance right.We also spend time considering

the most appropriate levels of asset classes (equities, bonds, property, cash, etc.) and the level

of diversification for each individual investor. These key issues are central to meeting the

individual's investment objectives. Allocating differing weighting and types of assets to

individual clients to tailor for their needs is a fundamental process of NCB's strategy. We

have our finger on the pulse and have a well-developed understanding of the returns and risks

related to investing in differentasset classes.


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Structuring Implementation

Once the investment strategy and asset allocation have been agreed, we then need to consider

the accounts structure that best suits you.

We offer a number of account options and service levels which can facilitate the varying

requirements of each client.

1) The Advisory structure requires you to decide on which assets to hold; we advise but

ultimately, you decide.

2) The Discretionary structure, is where we clearly agree and document all the "ground rules"

and investment parameters in advance. Following that, we simply get on with the job of

managing the portfolio. This of course, does not mean that you cannot have an ongoing input

to decisions (of course you can, its your money and we never forget that). However, this

structure does ensure that your portfolio continues to be actively managed (in line with the

pr e-agreed mand at e) eve n though you migh t be busy , travel ling or on hol ida y.


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Communication

Communication is a hugely important aspect of the client-wealth manager relationship.

So how exactly do we communicate? Clearly with such a range of different clients, there is no

"one size fits all" communication approach. Some clients want lots of communication. Some

want very little.

Our job is to make judgments on what level of communication you need and how best to

deliver it to you. This communication can take the form of face-to-face meetings, phone calls,

emails etc. We also try to send any relevant research work and information to clients.Our

ongoing review process will hopefully ensure that we always stay on the same wavelength.


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Review and Monitoring

If there's one thing we feel is vital to ensure a positive and enduring relationship, it is regular

face-to-face meetings.We aim to conduct a thorough review with you where we review all

aspects of the portfolio performance versus objectives at least once a year. We review all

elements of our service provision from the portfolio to the advice and communication to the

administration and reporting. Most importantly, we want to ensure that each client is satisfied

with every aspect of our service and take on board your thoughts on how we can improve our

service to you. We are always open to constructive criticism.

2.3. Phases of Portfolio Management

Security Analysis Portfolio Analysis

Portfolio Selection Portfolio Revision

Portfolio Evaluation

Security Analysis :(a) Fundamental analysis: This analysis concentrates on the fundamental factors affecting the company

such as EPS (Earning per share) of the company, the dividend payout ratio, competition faced by thecompany, market share, quality of management etc .

(b) Technical analysis: The past movement in the prices of shares is studied to identify trends and patternsand then tries to predict the future price movement. Current market price is compared with the future

predicted price to determine the mispricing. Technical analysis concentrates on price movements and ignoresthe fundamentals of the shares.

(c) Efficient market hypothesis: This is comparatively more recent approach. This approach holds thatmarket prices instantaneously and fully reflect all relevant available information. It means that the market

prices will always be equal to the intrinsic value.

Portfolio Analysis :A portfolio is a group of securities held together as investment. It is an attempt to spread the risk allover. Thereturn & risk of each portfolio has to be calculated mathematically and expressed quantitatively. Portfolioanalysis phase of portfolio management consists of identifying the range of possible portfolios that can be

constituted from a given set of securities and calculating their risk for further analysis.

Portfolio Selection :The goal of portfolio construction is to generate a portfolio that provides the highest Returns at a given levelof risk. Harry Markowitzh portfolio theory provides both the conceptual framework and the analytical toolsfor determining the optimal portfolio in a disciplined and objective way.

Portfolio Revision :The investor/portfolio manager has to constantly monitor the portfolio to ensure that it continues to beoptimal. As the economy and financial markets are highly volatile dynamic changes take place almost daily.As time passes securities which were once attractive may cease to be so. New securities with anticipation ofhigh returns and low risk may emerge.


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Portfolio Evaluation :Portfolio evaluation is the process, which is concerned with assessing the performance of the portfolio over aselected period of time in terms of return & risk. The evaluation provides the necessary feedback for betterdesigning of portfolio the next time around.

2.4 Measurement of risk :

Risk refers to the possibility that the actual outcome of an investment will differ from the expected

outcome. In other words we can say that risk refers to variability or dispersion. If any investment is saidto invariable it means that it is totally risk free. Whenever we calculate the mean returns of an investmentwe also need to calculate the variability in the returns.

Variance and Standard DeviationThe most commonly used measures of risk in finance are variance or its square root the standarddeviation. The variance and the standard deviation of a historical return series is defined as follows:

BetaA measure of risk commonly advocated is beta. The beta of a portfolio is computed the way beta of anindividual security is computed. To calculate the beta of a portfolio, regress the rate of return of the

portfolio on the rate of return of a market index. The slope of this regression line is the portfolio beta. Itreflects the systematic risk of the portfolio.

2.5 Some of Portfolio Management Services operating currently are :

NAME OF AMC OWNERSHIP

Greshma Shares & Stock Ltd. Private Indian

Nirmal Bang Private Indian

AnandRathisecuritiesltd.

PrivateIndian

ICICI Bank (Corporate service)Bank

CholamandalamDBS AssetManagementCompany Ltd.

Privateforeign

DSP Merrill Lynch ASSETManagement Company Ltd

Private foreign

J M Morgan Capital Managementlimited

Private foreign


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2.6 COMPARISAN BETWEEN BANKS AND MUTUAL FUNDS IN DIFFERENT ASPECTS :

BANKS PORTFOLIO

MANAGEMENT

SERVICES

Returns Low Better

Administrative exp. High Low

Risk Low Moderate

Investment option Less More

Network HighPenetration

Low but improving

Liquidity At a cost Better

Qualityof asset

NotTransparent

Transparent

In the above table the Comparison is made between Banks and Portfolio Management Services with different

aspects. Now a day due to low Rate of interest people prefer to invest in those products which give more

Returns in less time without Risk. Now a days also nearly 40% of people keep their money in Banks because

they are less Risky .The Returns expected in Portfolio Management Services are high where as in bank it is

low. Thus both Bank and Portfolio Management Services are good enough in themselves. It is depend on the

Investor what type of investment they want to do.


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PRODUCT PROFILE


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MUTUAL FUND

CONCEPT OF MUTUAL FUNDS:

A MUTUAL FUND is a body corporate registered with the Securities and Exchange Board of India (SEBI)

that pools up the money from individual/ corporate investors and invests the same on behalf of the investors /

unit holders in equity shares, govt. securities, Bonds call money market etc. and distributes the profits. In

other words a mutual fund allows an investor to indirectly take a position in a basket of asset.

UNIT TRUST OF INDIA is the first mutual fund set up under a separate Act, UTI Act in 1963 and started its

operation in 1964 with the issue of unit under the scheme US-64.

Currently public sector banks like SBI, Canara bank, Bank of India, and Institution like IDBI, GIC, and LICHDFC Foreign institution like Alliance Morgan Stanley, Templeton, Principle HSBC and private financial

Co. like first India mutual fund DSP Merrill Lynch, Sundaram, Kotak etc.have floated their own mutual funds.

Presently there are 33 mutual funds in India and close to 400 mutual fund schemes. Currently the total fund

under the mutual fund management in India are a little over Rs. 139000 crores. The private funds account for

around 77 percent.

Fig

:

Org


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anis

atio

n of

a

Mu

tual

Fun

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AD

VA

NT

AG

ES

OF

M

UT

UAL

FU

ND

:

The advantages of investing in a Mutual Fund are :

Professional Management

Diversification


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Convenient Administration

Return Potential

Low Costs

Liquidity

Transparency

Flexibility

Choice of schemes

Tax benefits

Well regulated

THE HISTORY OF MUTUAL FUNDS:

1963:UTI is Indias first mutual fund.

1987: PSU banks and insurers allowed to float mutual funds; State Bank of

India (SBI) first off the blocks.

1992: The Harshad Mehta-fuelled bull market because of what middle-class interest

First time start looking for avenues other then bank deposits that is, shares and

mutual Funds.

1993: Private sector and foreign players allowed; Kothari Pioneer first private

Fund house to start operations; SEBI set up to regulate industry.

1994: Morgan Stanley is the first foreign player.

1996:Sebis rules and regulations, which forms the basis of most

current laws, come into force.

2001: US-64 scam leads to UTI overhaul.

2003: National Certifications had been launched by NSE, AMFI made compulsory for new agents.

TYPES OF MUTUAL FUNDS :

Mutual Funds have specific investment objectives such as growth of capital, safety of principal current

income or tax exempt income, one can select one fund or any number of different funds to help one meets

ones specific goals. In general mutual fund fall under 3 general categories : -

Equity fund invest in shares of common stocks.

Fixed income funds invest in government or corporate securities which offer fixed rate of returns.

Balanced fund invest in a combination of both stocks and bonds.

Risk involved in investing in Mutual Funds? Mutual Funds do not provide assured returns. Their returns are linked to their performance. They invest in shares, debentures and deposits.


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All these investments involve an element ofrisk. The unit value may vary depending upon the performance of the company and companies may

default in payment of interest / principal on their debentures / bonds /deposits.

Besides this, the government may come up with new regulations, which may affect a particular industryor class of industries. All these factors influence the performance of Mutual Funds.

Performance Measures Of Mutual Funds :

Mutual Fund industry today, with about 34 players and more than five hundred schemes, is one of themost preferred investment avenues in India. However, with a plethora of schemes to choose from, theretail investor faces problems in selecting funds. Factors such as investment strategy and managementstyle are qualitative, but the funds record is an important indicator too. Though past performance alonecan not be indicative of future performance, it is, frankly, the only quantitative way to judge how good afund is at present.

Therefore, there is a need to correctly assess the past performance of different mutual funds.Worldwide, good mutual fund companies over are known by their AMCs and this fame is directly linked

to their superior stock selection skills. For mutual funds to grow, AMCs must be held accountable fortheir selection of stocks. In other words, there must be some performance indicator that will reveal thequality of stock selection of various AMCs.

Mutual fund is to the changes in the market; higher will be its beta. Beta is calculated by relating thereturns on a mutual fund with the returns in the market. While unsystematic risk can be diversifiedthrough investments in a number of instruments, systematic risk can not. By using the risk returnrelationship, we try to assess the competitive strength of the mutual funds vis--vis one another in abetter way.

In order to determine the risk-adjusted returns of investment portfolios, several eminent authors haveworked since 1960s to develop composite performance indices to evaluate a portfolio by comparingalternative portfolios within a particular risk class. The most important and widely used measures of

performance are:

The Treynor Measure

The Sharpe Measure


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COMPANY PROFILE


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3.1 Greshma Shares & Stock Pvt. Ltd.

Greshma Shares & Stock Pvt. Ltd. Is one of the leading financial services companies in India. It provides a

gamut of products and services including securities and commodities broking, investment planning, financial

planning, wealth management and merchant banking to a substantial and diversified clientele that includes

individuals, corporations and financial institutions.

It is committed to give its customers the best services and holding to its core values which always place its

client's interests first. These values are reflected in its Business Principles, which emphasize integrity,

commitment to excellence, innovation and teamwork.It has presence in 20 states with over 300 offices across

the nation. Clients turn to Greshma for its complete platform of financial services combined with excellentexecution.

It has a dedicated institutional team, which caters to mutual fund houses, insurance companies and almost all

the banks active in the capital market segment. Its goal is to create wealth for its retail and corporate

customers through sound financial advice and appropriate investment strategies.

3.2 Services

Greshma Shares & Stock Ltd. is a full-service financial services provider and advisory firm. By establishing

deep relationship with clients and taking time to understand their individual needs, it has quickly created an

impact across several businesses.
http://www.arihantcapital.com/about-us/our-culture-people.aspx#b-principalshttp://www.arihantcapital.com/about-us/our-culture-people.aspx#b-principals


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It intends to offer its clients access to a range of traditional and alternative investment opportunitiesrelying

on a mix of local and global capabilitiesincluding direct equity through online trading portal, private equity,

real estate, insurance, and corporate finance. it provides services in an advisory capacity to Non Resident

investors and Foreign Institutional Investors.

You have the right to pursue financial independence your way. Greshma Shares & Stock Ltd. is committed to

help you do just that. It delivers State-of-the-art Tools, excellent Customer Care, Affordable Pricing and

Innovative Technology so you can follow your own path. Need a basedsolution, thats what our Product

Bouquet is all about

Equities Trading - Cash and Derivatives Long-term Investing - Direct Equities & Mutual Fund Internet Trading


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Currency Futures Institutional Business Arbitrage Depository Services

Greshma Commodities Private Limited :

Greshma Wealth Advisors Private Limited

Financial Planning(Cover comprehensive Investment, Insurance, Retirement and Tax Planning)

Wealth Advisors

3.3Advantages of Greshma Shares & Stock Ltd.

Member of NSE, BSE


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Personalized Services

Backed by Powerful Research

Facility to put orders through live screen

Call N Trade Service

Alerts

Trading Workshops & seminars

Latest Technology implemented

Powerful Risk-Management system

NSE (Cash & F&O), BSE (Cash) on the same screen

Secure Transaction authentication based model

Online reports and contract notes

Online transfer and withdrawal of funds

Tie-up with major banks for Funds Transfer

Competitive brokerage

3.4 Our Values

Customer First

Pursuit of Excellence

Fairness to allStakeholders

Transparent and Ethicalconduct of business

Leveraging all businessopportunities

Team work, based onmutual trust

Continuous Innovation

3.5 Our Vision

To be the most trusted business house adopting a professional approach par excellence and

heralding new standards in the quality of services.

To be one of the most preferred organizations for wealth maximization of all our stake holders

including customers, employees and channel partners .


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To create management systems that adopt global standards of corporate governance Corporate

Social Responsibility.

3.6 Our Mission

We shall strive to deliver value for money to the customer in all our business segments :

Fostering a Customer centric approach, e Facilitating Ease of transaction by leveraging technology, Providing Professional and unbiased counseling, Ensuring Transparent dealings and Maintaining Unfailing commitment to business ethics

3.7 Private Client Group:-


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This specialized division was set up to cater to the HIGH NET WORTH INDIVIDUAL (HNIs) and

institutional clients keeping in mind that they require a different kind of financial planning. Here they follow a

hard-nosed business approach with the soft touch of dedicated customer care and personalized attention.

For this purpose they offer a comprehensive and personalized service that encompasses planning and

protection of finances, planning of business needs and retirement needs and the host of other services, all

provided on a one-to-one basis.The research report has been widely appreciated by this segment. The delivery

and support modules have been fine tuned by giving facility to client to access online portfolio information,

constant updates on their portfolios as well as value added advice on portfolio churning, sector switches etc.

3.8 Our Network

We will have a pan India presence through a network of Regional Offices, Branch Offices, Sub Brokers,

Authorized Persons and Remissars. Starting with 50 offices in the first year of our operations, we have a plan

in place for a steady increase of this to 500 over the next five years. Our Regional Offices in Ahmedabad,

Coimbatore and Thrissur are already functional.

3.9 Our Systems

We have the NOW software of NSE and the ODIN software of Financial Technologies as the Front End

software for trades. The LD software of Apex Softcell supports our accounting and back office operations.

These programmes are time tested, robust, versatile and eminently scalable. We have an experienced IT team

managing the systems, 24/7.

3.10 Our Team


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Mr. Suvinya Sharma,a qualified Chartered Accountant and CISA (USA) with 15 years experience in

Capital and Commodities Markets heads our group Company handling commodities, GRESHMA

COMMODITIES PRIVATE LIMITED.

Mr. Charul Shah, a Certified Financial Planner with the experience of handling substantial portfolios for

over 10 years, heads our Wealth Management Company, GRESHMA WEALTH ADVISORS PRIVATE

LIMITED, as its whole time Director. Mr. Kamlesh Gandhi, a rank holder Chartered Accountant, with 29

years experience in the financial sector in various capacities is our Chief Financial Officer. Astute

management of finances and strict adherence to financial discipline are his forte..Mr. Dinesh Shah, who

heads our Operations carries with him exposure over 15 years in various capacities and enjoys an uncanny

reputation for effective management of systems and processes.

Ms. Elsy Anil, who heads our Research Department has been a Research Analyst for 10 years in the Capital

Market in reputed organizations like Batliwala & Karani and HSBC Securities. Her expertise in valuation and

objectivity of outlook are a great value add to the Company.

Mr. Jathin N. Shah, a former Director of Joindre Capital Services Limited who has handled various profiles

in Capital Markets is in charge of Risk Management. He enjoys a reputation for unwavering focus andmethodical approach to matters.


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RESEARCH METHODOLOGY


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Research can be defined as systemized effort to gain new knowledge. My objective of research is to know

awareness wealth of management from people. I have taken collection of sample form different region so I

have taken Convenience sampling method. Samples are collected from Udaipur and Ajmer and I took

hundred samples to conduct my research. Data is being collected form various sources like:-

Questionnaire

Personal visit

Telephonic information

Questionnaire is a written form being given to the prospective investor to give feedback about the services

provided to them and also to find the satisfaction level of the investor for a particular investment product.

Personal visitThe second way of collecting data is Personal Visits to the cooperates personally by fixing an appointment.

Personal Visit gives a clear picture of the conclusion drawn in Questionnaire It gives a clear view of the client

Awareness about the product.

Telephone information

The further source of collecting data is telephonic information with the existing customer and the prospective

investors.When we conduct research, we faced several research problem like difficulty in convince people for

investment and to convince people to professional advice service to manage their money. Difficulty regarding

changed perception of the investor. According to age and profession over come investor who wants return in

less time.

Now we conclude that 91% people are aware about wealth management and rest 9% people are not aware

about wealth management. Then we taken a comparative study of different age group from 25 to 35 have

taken risk 60 %, 35 to 45 age group are in 20%, 45 to 60 are in 70% and people who are above 60 are in risk

of 3%.

3.1Objective of the study

Research objective is to know the awareness about the wealth management from the people and to know the

different aspects of wealth management advisory services according to different age and profession

3.2Type of research

Descriptive research: - it includes surveys and facts and finding enquiries of different kinds. the major

purpose of descriptive research is description of the state of affaires as it exists at presents. The main

characteristic of this method is that the researcher has no control over the variables. He can only report what


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has happened or what is happing.The methods of research utilize in descript research are survey methods of

all kinds, and including comparative and co relational methods.

3.3 Sample size and Methods of selecting sample

Non- Probability Sampling;-

A sample selected using non random method is called a non- probability sample. Under ideal conditions a

non-probability sample may provide a reasonably good estimate. But being non-random, no estimate of error

is possible in such cases. The sampling method use for this survey is the convenience sampling which is a sub

type of non-probability sampling.

In convenience sampling method, samples are selected on the basis of their convenient availability or in other

words convenience sampling is a sampling method used where a researcher select a naturally occurring of

group of people with in the population you want to study.

Sampling size:-

Large sample gives reliable result than small sample. However, it is not feasible to target entire population or

even a substantial portion to achieve a reliable result. So, in this aspect selecting the sample to study is known

as sample size. Hence, for my project my sample size was 100.

3.4Scope of Study

It is very true that its very difficult to do the research with the whole universe. As we know that it is not

feasible to go for population survey because of the numerous customers and their scattered location. So for

this purpose sample size has to be determined well in advance and selection of sample also must be scientific

so that it represents the whole universe.

So far as my research is concerned, I have taken sample size of 100 respondents from Udaipur city. I

have selected Income Earners with savings to invest in stock market and others as well.

For any researcher it is always a good to check the visibility of the research that he or she is going to conduct,

because that will add some purpose and intensity in the mind of a researcher for doing a research more

seriously and sincerely which will at last will effect the outcomes of the research.

The company and I could get to know about its stand among the other players in the market

The company and I could get to know about the mindset of the potential brokers


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3.5 LIMITATIONS OF THE RESEARCH:-

The research is confined to a certain parts of Udaipur and does not necessarily shows a pattern

applicable to all of Country.

Some respondents were reluctant to divulge personal information which can affect the validity of

all responses.

In a rapidly changing industry, analysis on one day or in one segment can change very quickly.

The environmental changes are vital to be considered in order to assimilate the findings.


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FACTS AND FINDING


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Awareness of Wealth management Services

91%

9%

No

YES

4.1 AWARENESS OF WEALTH MANAGEMENT SERVICES OUT OF 100 PEOPLE:-

In the below chart the awareness of wealth management services is determined in the percentage terms only9% of the total population are not aware ofWEALTH MANAGEMENT SERVICES. As wealth managementservices in India are growing rapidly the awareness of wealth management services is increasing among the

Investors & every Investor knows about wealth management services by its nomenclature. They are not reallyaware of the concept

4.2 RISK TAKEN BY DIFFERENT AGE GROUP :-

AGEGROUP

RISK TAKEN INPERCENTAGE

25-35

60

35-45

20

45-60

17

60&

above

3


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RISK TAKEN IN PERCENTAGE

60%20%

17%

3%

25-35

35-45

45-60

60 & above

4.3 COMPARISON ON THE BASIS OF PLACE:-

Awareness in financial products in Udaipur is known 70 people comparatively in ajmer it is known only 30people.

Awareness in Mutual Fund out of

100 people

70

30

0

20

40

60

80

Udaipur Ajmer

Place

Series1

No of People


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Percentage in Income People Invest

1% 5%

56%

38%

Over 50% 30-50% 10-30% Below 10%

4.4 PERCENTAGE

OF INVESTMENT

TO TOTAL

INCOME

The following table andpie chart throw the light on the percentage of saving out of income :

INC

NO.ofPEOPLE

PERCENTAGE

Over50%

1 1%30%-50% 5 5%

10%-30% 56 56%

10% & below 38 38%


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BANK

INSURANCE

STOCK MARKET

BONDS & DEBENTURE

PPF

NSC

POST OFFICE SAVING SCHEMES

REALESTATE

GOLD

CHIT FUND

4.5 EXPOSURES IN FINANCIAL PRODUCTS

FINANCIAL INSTRUMENTS % OF INVESTMENT

BANK 40%

INSURANCE 10%

STOCK MARKET 15%

BONDS & DEBENTURE 3%

PPF 7%

NSC

5%

POSTOFFICE

SAVIN

GSCHEMES

8%

REALESTATE

2%

GOLD

5%

CHIT

FU

ND

5%


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Perception of Investors

10%

28%

62%

Safe

Risky

Others

4.6 PERCEPTION ABOUT WEALTH MANAGEMENT SERVICES

Safe 10%

Risky 28%

Other 62%


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0%

10%

20%

30%

40%

50%

60%

25-35 45-60

Risk Return and Investment Chart

according to different age group

RISK

RETURN

INVESTMENT

4.7 COMPARITIVE STUDY OF RISK, INVESTMENT AND RETURN.

35-45 25% 15% 15%

45-60 10% 20% 10%

60& ABOVE 5% 30% 30%

4.8 IDENTIFICATION OF WEALTH MANAGEMENT SERVICES COMPANIES

AGE GROUP

RISK RETURN INVESTMENT

25-35

60% 35% 45%

ASPECTS PERCENTAGEBrand Name 39

Good Services 24

High Yield 15Advertisement 10


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0

5

10

15

20

25

30

35

40

Percentage

Brand Name Good

Services

High Yeild Advertisement Any other

reason

Aspects

Series1

Series2

Any other reason 12


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ANALYSIS AND INTERPRETATION

As wealth management services in India are growing rapidly the awareness of wealth managementservices is increasing among the Investors & every Investor knows about wealth management servicesby its nomenclature. They are not really aware of the concept.After facts and findings we analysis thedata is awarness of wealth management services is determined in the percentage only 9% are notaware of wealth management.

According to different age group risk taken capacity in 25 - 35 is 60%,35-45 is 20%,45-60 is 17%and above 60 is 3%.. The people of younger age are willing to take more risk as compared to the elderage group people. The middle age people do not take much risk because of much responsibilitytoward family and society With reference to this chart only 17% of income of middle age people isbeing invested in risk prone securities.

Survey conducted from different area, we find out that 70 people are aware about financial serviceslike mutual fund in Udaipur and 30 people in Ajmer.

It has been observed that people invest mostly 10% to 30% of their income as the moderate level ofincome is in the range of rupees 30,000 to 40,000 per annum. There are very few people who investabove 50% of their Income as their income level is too high say above Rs 10, 000, 00. Investors arehaving different responsibilities toward the society and family due to which they are not able to invest


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more money in Financial Products. There are many people who invest only 10% of their incomeaccording to total Sample Size

People in early days kept their money in Bank. They use to think Bank is the only place where themoney is safe till today also 40% of people feels the same but many of them have started investing inother Financial Products like Insurance, Stock Markets, Commodities etc. The Post Office savingsare less preferred by the Investors due to the less Returns in more Time. Businessmen mostly invest intangible assets like land, building, gold etc. people mainly invest and keep their money in banks.Stock market came into existence only from early 90s thats why the percentage investment in stocksis low as compared to banks. People generally invest in risk free financial product like PPF, NSC etc.as they get tax exemption. Investment in Insurance is also preferred by people because it is not a riskyinstrument

Only 10 % of people feel that it is safe. Out of 100 sample size it is very difficult to determine theexact perception of investors. Due to continuous increase in wealth management services industriesthe perceptions of people are changing slowly.

it is determined that people of the age group 25-30 yrs are more risk takers as compared to other agegroups. However they are able to invest less because they do not have any responsibility toward the

society and family. They also invest less because they dont get proper guidance. As the age increasesthe saving percentage decrease but the people above 55 are keener to invest because they become freefrom all the responsibilities of the family and society. At this stage they need continuous flow ofincome. Middle age people of the age group of 35-45 yrs. are not investing much because they arebound to many responsibilities towards family and society.

Many Brand Name plays an important role for attracting investors. Secondly, good services are alsoexpected by an investor from the companies. In other reasons investors generally pointed out theidentification of the companies known by their friends or relatives.

SWOT ANALYSIS


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Strength :

the biggest strength is 91% people are aware about wealth management so wealth management serviceprovider companies are growing rapidly in India due to change in perception of people.

Weakness :

People in India mostly invest their part of income in bank. People do not have risk taking capability. TheGreshma stock and share.ltd. Is not completely covering Indian market because the large number ofcompetitors the Greshma is the new broking agency, so trust worthiness is low rather than its competitors.

Opportunity :

Chargeable commission by Greshma stock and shares.lt is low so it can attract the costumer and to maintain

the better relation.


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Threats :

competitor trust worthiness is high.

People are not convincing. A service provided by competitor is more valuable. Risk taking capacity of people is low. People do not invest huge amount.


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CONCLUSION

Conclusion :

On the basis of research we found out that many people are not investing due to risk in wealth

management services. Investors are not investing in capital market because of high risk involved in

this market. Investors are scared to invest and they also lacking in proper knowledge and guidance.

Majority of the investors rely on the stock broking Company having presence in all over India. Most

of investors prefer to invest in gold because gold gives higher return in current scenario. Perception of

Indian people are not changing with the present scenario they still rely on old method of saving of

their wealth like using bank accounts, post office saving scheme etc. In Indian economy there is still

having lack of expertise financial advisors due to which people are afraid to invest money.


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SUGGESTIONS


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8.1SUGGESTIONS:-

Looking to the level of Awareness it is recommended that wealth management services promotion

companies may be undertaken in the following forms:-

Advertisement in Newspaper and Magazines.

Hoardings etc.

The prospective clients may be imparted training and education through :-

Seminar.

Short Duration training programmes.

Small towns may be targeted for business development as this area is untapped relatively and there

exist huge potential for business development.

People of young age group who are interested in professional advisory services for managing their

money may be targeted separately.


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APPENDIX

QUESTIONAIRE :


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1 NAME

2. AGE

25-35

35-45 45-60

60 & above

3. GENDER:

4. SALARIED/BUSINESSMAN/PROFESSIONAL

5. AREA OF ACTIVITY

6. ANNUAL INCOME:

less than Rs.1,50,000/-

1,50,000 - 3,00,000/-

3,00,000 - 5,00,000/-

above 5,00,000/-

7. DO YOU INVEST USING

Yourself

Through Someone i.e. Stock Broker, Consultant etc.

8. WHAT PERCENTAGE OF INCOME DO YOU INVEST?

OVER 50%

30% TO 50%

10% TO 30%

Below 10%

9. WHAT ARE THE VARIOUS INVESTMENT SCHEMES IN WHICH YOU INVEST?

TYPE OF INVESTMENT Priorities(1-10)

BANK DEPOSITS

INSURANCEULIPsTERM PLANSENDOWMENT PLANSOTHERS

SHARE MARKET

BONDS & DEBENTURE


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PPF

NSC

POST OFFICE SAVING SCHEMES

REAL ESTATE

GOLD

CHIT FUNDS

OTHERS (Please Specify)

10 .WHAT IS PURPOSE FOR INVESTING?

Tax planning Savings

Risk cover/security Future planning Others:

11. WHOM DO YOU CONSULT FOR YOUR INVESTMENT?

Charted Accountant Broking Agencies Personal financial Advisors Others.

12. ARE YOU AWARE OF BETTER INVESTMENT AVENUES AVAILABLE?

Yes No

13. DO YOU THINK YOU NEED PERSONALISED FINANCIAL ADVISORY?

Yes No

14. DO YOU THINK THE WEALTH MANAGEMENT SERVICES ARE NOT AS POPULAR IN INDIA AS INOTHER COUNTRIES?

People are not aware. Any other reason please specify

15. HOW DO YOU LOOK WEALTH MANAGEMENT COMPANIES?


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Brand Name Good Service High Yield Advertisement

Any Other Reason...........................................

16. WHAT IS MINIMUM RATE OF RETURN EXPECTED BY YOU?


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BIBIOLOGRAPHY

BOOKS & REFERENCE :

Fama E. (1995), The behavior of stock market pricejournal of business, 38(4),25-86. Choudhurys.k. (1991),seasonality in share return preliminary evidence on the week event, chartered

accountant,407-420.

French k. (1980), stock return & the weekend effect,journal of financial economics 8(6),56-90.

Gultekin M.N.& Gultekin N.B.(1983),stock market seasonality : International evidence, Journal offinance economy,14(7),396-435.

V.A. Avadhani(2004),Security analysis & portfolio management(540-607) S. Kevin(2003),Portfolio management(27-46). M.R.Agrawal (2009),Security analysis & Investment management,(1.1-7.22)

NEWSPAPER & JOURNAL :

The Economic times of India The Business World Financial Express Business Standard


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