Post on 04-Jun-2018
8/14/2019 unicon investment
1/93
SUMMER PROJECT REPORT
On
INVESTMENT SERVICES AND
INVESTMENT PROCESS OF UNICONINVESTMENT SOLUTION
At
Under the guidance o
Mr! MADURI"A MALI# Dr!
S$ARAT S$ARMA
Sales Manager Faculty,
Management
SRM-IST,Modinagar
SU%MITTED %"&
A'$AR $USSAIN #$AN
Reg! No! ( )*+,-+./
0M!%!A! .++,(.+1+2
1
8/14/2019 unicon investment
2/93
SRM 3 INSTITUTE OF SCIENCE AND
TEC$NOLO4"5 MODINA4AR
2
8/14/2019 unicon investment
3/93
STUDENT DECLARATION
I AZHAR HUSSAIN KHAN student of MBA here by declared that the research
report entitled INVESTMENT SERVICES AND INVESTMENT PROCESS
OF UNICON INVESTMENT SOLUTIONis completed and submitted under
the guidance of Mr.Tarun Kumar (Sr.Rea!"#n$%"& Mana'er is my original
work. The imperial finding in this report is based on the data collected by me. I
have not submitted this project report to SM!IST or any other "niversity for the
purpose of compliance of any re#uirement of any e$amination or degree.
DATE) AZHAR HUSSAIN KHAN
PLACE) M*A III SEM
ROLL NO. +,-/-01
3
8/14/2019 unicon investment
4/93
ACKNO2LED3EMENT
At the very beginning% I wish to render my deep sense of gratitude with special
thanks and due regard to Mr. TARUN KUMAR (Sr. Rea!"#n$%"& Mana'er4
Un"5#n In6e$!men! S#u!"#n whom I re#uired the privilege of working. &is
invaluable guidance and thoughtful consideration had been the key motivating
factor throughout my project% which enabled me to complete my project so
efficiently and effectively.
I wish to e$press my respectable thanks and gratitude to Dr. SHARAT SHARMA
(Fa5u!7 #8 M.*.A. theoretical knowledge about the subject.
I feel immense pleasure to offer my thanks to faculty members% who co!operated in
analysis of data and helped me to understand some behavioral aspects of
consumers. I am very thankful to my friends who directly and indirectly helped me
in collection of data and material related to the research topic.
AZHAR HUSSAIN KHAN
4
8/14/2019 unicon investment
5/93
C%a&!er 9 :
'. ($ecut5
8/14/2019 unicon investment
6/93
C%a&!er 9 1
1. 8uestionnaire 3/
2. Bibliography 33
6
8/14/2019 unicon investment
7/93
E=ECUTIVE SUMMAR>
To get initial success in this field is very difficult. Although the business
generation becomes easier with time as they serve more people who then get added
up in the loyal clientage. Thus time and service are two most factors to get in this
field.
Also the corporate remains a very important segment which gets business in bulk
but retail cannot be ignored which makes your business ticking.
-ustomer remains in the pivotal position.
The financial sector is in a process of rapid transformation. eforms are continuing
as part of the overall structural reforms aimed at improving the productivity and
efficiency of the economy. The role of an integrated financial infrastructure is to
stimulate and sustain economic growth.
8/14/2019 unicon investment
8/93
FINANCIAL SECTOR
The financial sector is in a process of rapid transformation. eforms are continuing
as part of the overall structural reforms aimed at improving the productivity and
efficiency of the economy. The role of an integrated financial infrastructure is to
stimulate and sustain economic growth.
The "S9 *3 billion Indian financial sector has grown at around '/ per cent and has
displayed stability for the last several years% even when other markets in the Asian
region were facing a crisis. This stability was ensured through the resilience that
has been built into the system over time. The financial sector has kept pace with
the growing needs of corporate and other borrowers. Banks% capital market
participants and insurers have developed a wide range of products and services to
suit varied customer re#uirements. The eserve Bank of India :BI; has
successfully introduced a regime where interest rates are more in line with market
forces.
+inancial institutions have combated the reduction in interest rates and pressure on
their margins by constantly innovating and targeting attractive consumer segments.
Banks and trade financiers have also played an important role in promoting foreign
trade of the country.
!
8/14/2019 unicon investment
9/93
*an?$
The Indian banking system has a large geographic and functional coverage.
0resently the total asset si
8/14/2019 unicon investment
10/93
8/14/2019 unicon investment
11/93
The Securities and ($change Board of India :S(BI; has effectively been
functioning as an independent regulator with statutory powers.
Indian capital markets have rewarded +oreign Institutional Investors :+IIs; with
attractive valuations and increasing returns.
The Mumbai Stock ($change continues to be the premier e$change in the
country with an increase in market capitalisation from "S9 ,5 billion in '665!'66'
to "S9 *5) billion in '666!*555. The stock e$change has about %555 listed
companies and an average daily volume of about a billion dollars
Many new instruments have been introduced in the markets% including inde$
futures% inde$ options% derivatives and options and futures in select stocks.
In$uran5e
>ith the opening of the market% foreign and private Indian players are keen to
convert untapped market potential into opportunities by providing tailor!made
products@
The presence of a host of new players in the sector has resulted in a shift in
approach and the launch of innovative products% services and value!added benefits.
11
8/14/2019 unicon investment
12/93
+oreign majors have entered the country and announced joint ventures in both life
and non!life areas. Major foreign players include ew Cork 7ife% Aviva% Tokio
Marine% Allianith competition% the erstwhile state sector companies have become aggressive
in terms of product offerings% marketing and distribution.
The Insurance egulatory and 4evelopment Authority :I4A; has played a
proactive role as a regulator and a facilitator in the sectorDs development.
The si
8/14/2019 unicon investment
13/93
The marketDs potential has been estimated to have a premium income of "S9 35
billion with a potential si
8/14/2019 unicon investment
14/93
According to a survey conducted by Thomson +inancial and 0rime 4atabase%
India ranked as the third most active venture capital market in Asia 0acific
:e$cluding Gapan;. It recorded ''/ deals in *55' with average investment per deal
amounting to "S9 2.6 million. /2 F-+s invested "S9 653 million in '5' Indian
companies during *55'.
4isbursements for *553 are e$pected to be "S9 * billion and are estimated to
reach "S9 '5 billion by *556.
There is an increased interest in India@ 25 F- funds operate in India with the total
assets under management worth about "S9 billion.
The amount has grown nearly twenty fold in the past five years. Most F-s
believe that *553!56 will be driven by a relatively stable economy and new
initiatives that will boost the e!commerce sector% particularly on!line trading and e!
banking sectors.
14
8/14/2019 unicon investment
15/93
INDUSTR> PROFILE
A. Or"'"n an@ De6e#&men! #8 !%e "n@u$!r7
The Bombay Stock ($change :BS(; is known as the oldest e$change in Asia. It
traces its history to the '3/5s% when stockbrokers would gather under banyan trees
in front of MumbaiDs Town &all. The location of these meetings changed many
times% as the number of brokers constantly increased. The group eventually moved
to 4alal Street in '32, and in '32/ became an official organi
8/14/2019 unicon investment
16/93
-apital market reforms in India and the launch of the Securities and ($change
Board of India :S(BI; accelerated the integration of the second Indian stock
e$change called the ational Stock ($change :S(; in '66*. After a few years of
operations% the S( has become the largest stock e$change in India.
Three segments of the S( trading platform were established one after another.
The >holesale 4ebt Market :>4M; commenced operations in Gune '66, and the
-apital Market :-M; segment was opened at the end of '66,. +inally% the +utures
and 1ptions segment began operating in *555. Today the S( takes the ',th
position in the top ,5 futures e$changes in the world.
In '66% the ational Stock ($change of India launched S0 -J ifty and
-J Gunior Indices that make up '55 most li#uid stocks in India. -J ifty is a
diversified inde$ of /5 stocks from */ different economy sectors. The Indices are
owned and managed by India Inde$ Services and 0roducts 7td :IIS7; that has a
consulting and licensing agreement with Standard 0oorDs.
In '663% the ational Stock ($change of India launched its web!site and was the
first e$change in India that started trading stock on the Internet in *555. The S(
has also proved its leadership in the Indian financial market by gaining many
16
8/14/2019 unicon investment
17/93
awards such as HBest IT "sage AwardD by -omputer Society in India :in '66 and
'662; and -&I0 >eb Award by -&I0 maga
8/14/2019 unicon investment
18/93
Transnational banks are encouraged to operate in the Indian banking sector.
Attempts are made to attract foreign direct investment in different sectors. There is
an increasing entry of foreign portfolio capital due to stock market liberalisation.
0eople are encouraged to invest in stocks through income ta$ benefits and
abolition of capital gains ta$. There is a move to develop a national pension fund
which will be invested in different stocks to get returns out of which pension will
be provided to retired people. It is e$pected that boosting up of stock market will
accelerate the process of capital accumulation and growth.
Stock market development has been an important part of financial liberalisation in
the less developed countries :74-s;. In the pro!liberalisation circle% stock market
is assigned to play an important role in the capitalist development of 74-s.
There are many studies supporting the positive link between stock market
development and growth. 7et us mention some of the recent studies. 1ne important
study was undertaken by 7evine and Lervos :'663;. Their cross!country study
found that the 4evelopment of banks and stock markets has a positive effect on
growth. In another study 7evine :*55); argued that although theory provides
ambiguous relationship between stock market li#uidity and economic growth% the
cross!country data for ,6 countries over the period '62!6) suggest a strong and
1!
8/14/2019 unicon investment
19/93
positive relationship :see also 7evine% *55';. &enry :*555; studied a sample of ''
74-s and observed that stock market liberalisations lead to private investment
boom. ecently% Bekaert et al :*55/; analysed data of a large number of countries
and observed that the stock market liberalisation Hleads to an appro$imate '
increase in annual real per capita =40 growthD.
There are some economists who are sceptical. 7ong time back ?eynes :'6);
compared the stock market with casino and commented@ Hwhen the capital
development of a country becomes the by!product of the activities of a casino% the
job is likely to be ill!doneD.
eferring to the study of >orld Bank :'66); Singh :'662; pointed out that stock
markets have played little role in the post!war industrialisation of Gapan% ?orea and
Taiwan. &e argued that the recent move towards stock market liberalisation is
Hunlikely to help in achieving #uicker industrialisation and faster long!term
economic growthD in most of the 74-s.
In this perspective this study e$amines the nature of relationship between stock
market and growth through capital accumulation in India.
1"
8/14/2019 unicon investment
20/93
3r#B!% an@ &re$en! $!a!u$ #8 !%e "n@u$!r7
The ever!growing and fast!maturing NIndia MarketN is a lucrative business
destination for developed countries. >ith 2!3 of =40 growth% huge analytical%
young and (nglish speaking work force the NpullN for opportunities are luring. The
bandwidth of NIndia MarketN is enviably wide and very deep.
NMarkets in IndiaN are well protected by legal guidelines and efficient
administrators. >ith a liberal and proactive government at the center the road
ahead for NMarkets of IndiaN is very rosy. NMarket IndiaN has witnessed e$ponential
growth over past one and half decade. 7iberal and transparent financial policies has
effected free!in!flow of +II and as a result of which NIndia MarketN has grown to a
colossal monster in the international market. +oreseeing sure and substantial
returns on investments :1I; companies are pro! actively listing on the stock
market inde$es. =overnment agencies once much hated for red tape and bribes has
shed its image. 0rofessionalism is their new mantra. 0ublic (nterprises like I1-%
1=-% B&(7% T0-% SAI7% MT7% B0-7% &0-7 and =AI7% SBI% 7I-%
&industan Antibiotics 7imited% Air India etc. to name a few% are giving 0rivate
Indian companies a good run for their money. 0rivate giants like eliance
2#
8/14/2019 unicon investment
21/93
Industries 7imited% Infosys% Tata% Birla -orporation% Get Airways% anba$y%
Biocon% Bajaj Auto% I-I-I are breaking their own records every financial years.
Fu!ure #8 !%e "n@u$!r7
The stock market is booming in spite of the low agriculture output. The monsoon is
good in an overall sense but still the #uestion remains who takes the creditO The
answer is the karma of the people. I appreciate the Indian politicians and the
industrialists who being pawns of destiny are doing things positive and productive.
India% as a country is running a very good period and the position of planets in the
transit are giving wonderful results.
7ess than one percent of population own stocks and less than '555 individuals
control the market% the majority being the +IIS% the promoters of the company. The
credit should go to media for making stock market headlines.
The #uestion many people in the market ask@
>ill the bull run continueO >hat heights we can reachO
+irst of all% mark my words Indian bourses in the future will be one of the best
investments in the world. There will be a time when it can even reach )555 points
21
8/14/2019 unicon investment
22/93
in the nifty. India will begin one of the best dasas of the Sun% which will work in its
favour. So before *556 Indian bourses should see an all time high.
ow this bull run will continue.
There can be some correction in the BS( sense$ in the 2/55 points level.
The market will hover between the 555! 2555 till mid august.
There will be huge fluctuations.
Investors and new entrants to the market to cool down a bit and come well below
2555.
In any case if you are long terms players then step!in and buy now and forget for
another '5 years. Cou will make a killing in the Indian markets.
Most of the tech companies and the main inde$ will do well but slightly in the
lower side of e$pectations.
22
8/14/2019 unicon investment
23/93
AN OVERVIE2 OF FINANCIAL SERVICES
Since '665Ds% there has been an upsurge in the financial services provided by
various banks and financial institutions. (fficiency of emerging financial system
largely depends upon the #uality and variety of financialP services provided by the
banking and non!banking financial companies.
The term F"nan5"a Ser6"5e$can be defined as% Qactivities% benefits and
satisfactions% connected with sale of money% that offer to users and customers%
financial related valueR.
Suppliers of financial services include the following types of institutions@
Banks and financial Institutions.
&ouse building societies.
Insurances companies.
-redit card issuer companies.
Investment trust and Mutual funds.
Stock e$changes.
7easing companies.
"nit trusts.
+inance -ompanies% and so on.
23
8/14/2019 unicon investment
24/93
+inancial service organiithin the financial services industry the main sectors are banks%
financial institutions and non!banking financial companies.
C%ara5!er"$!"5$ #8 8"nan5"a $er6"5e$)
The financial have the following characteristics.
In!an'"e) An organi
8/14/2019 unicon investment
25/93
Fu5!ua!"#n "n @eman@) The demand for certain categories of financial services
e.g.% life insuranceP do fluctuate significantly% according to the level of general
economic activity. This factor puts e$tra pressures on the roles and functions of
marketing in insurance organi
8/14/2019 unicon investment
26/93
HpackageD then the product. The package consists of branch location% staff%
services% reputation% advertising and new services offered from time to time.
In8#rma!"#n a$e@. +inancial services industry is an information!based
industry. It involves creation% dissemination% and use of information. Information is
an essential component in the production of financial services. -ost of processing
information is #uite relevant in the profitable production of financial services.
Reu"re ua"!7 La#ur. +inancial services re#uire huge amounts of high
#uality 7abour to deal with information and communication with the market. The
types of 7abour rage from workers performing simple tasks to those undertaking
comple$ analysis and negotiation re#uire years of training and e$perience.
K"n@$ #8 8"nan5"a $er6"5e$)
+inancial services provided by various financial institutions% commercial banks and
merchant bankers can be broadly classified into * categories@
(: A$$e! a$e@ Fun@ a$e@ $er6"5e$.
(0 Fee a$e@ A@6"$#r7 $er6"5e$.
26
8/14/2019 unicon investment
27/93
The important fund based services include:
(#uipment 7easing E+inance.
&ire! 0urchase and -onsumer -redit.
Bill 4iscounting.
Fenture capital.
&ousing +inance.
Insurance Services.
+actoring etc.
The fee based/ advisory services include:
Issue Management.
0ortfolio Management.
-orporate -ounseling.
7oan Syndication.
Merger and Ac#uisition.
-apital estructuring.
-redit ating.
Stock Broking and so on.
2
8/14/2019 unicon investment
28/93
INSURANCE IN INDIA
The insurance sector in India has come a full circle from being an open
competitive market to nationali
8/14/2019 unicon investment
29/93
:G,
8/14/2019 unicon investment
30/93
3enera In$uran5e
The =eneral insurance business in India% on the other hand% can trace its roots to
the Triton Insurance -ompany 7td.% the first general insurance company
established in the year '3/5 in -alcutta by the British. Some of the important
milestones in the general insurance business in India are@
:G-1)The Indian Mercantile Insurance 7td. set up% the first company to transact all
classes of general insurance business.
:G,1)=eneral Insurance -ouncil% a wing of the Insurance Association of India%
frames a code of conduct for ensuring fair conduct and sound business practices.
:G
8/14/2019 unicon investment
31/93
Insurance sector reforms
In '66)% Malhotra -ommittee% headed by former +inance Secretary and BI
=overnor . . Malhotra% was formed to evaluate the Indian insurance industry
and recommend its future direction. The Malhotra committee was set up with the
objective of complementing the reforms initiated in the financial sector.
The reforms were aimed at 5rea!"n' a m#re e88"5"en! an@ 5#m&e!"!"6e 8"nan5"a
$7$!em suitable for the re#uirements of the economy keeping in mind the structural
changes currently underway and recogni
8/14/2019 unicon investment
32/93
ii) Competition
0rivate -ompanies with a minimum paid up capital of s.'bn should be allowed
to enter the industry
o -ompany should deal in both 7ife and =eneral Insurance through a single
entity
+oreign companies may be allowed to enter the industry in collaboration with
the domestic companies
0ostal 7ife Insurance should be allowed to operate in the rural market
1nly one State 7evel 7ife Insurance -ompany should be allowed to operate in
each state
iii) Regulatory Body
The Insurance Act should be changed
An Insurance egulatory body should be set up
-ontroller of Insurance :-urrently a part from the +inance Ministry; should be
made independent
32
8/14/2019 unicon investment
33/93
iv) Investments
Mandatory Investments of 7I- 7ife +und in government securities to be reduced
from 2/ to /5
=I- and its subsidiaries are not to hold more than / in any company :There
current holdings to be brought down to this level over a period of time;
v) Customer Service
7I- should pay interest on delays in payments beyond )5 days
Insurance companies must be encouraged to set up unit linked pension plans
-omputeri
8/14/2019 unicon investment
34/93
T%e In$uran5e Re'ua!#r7 an@ De6e#&men! Au!%#r"!7 (IRDA
eforms in the Insurance sector were initiated with the passage of the I4A Bill in
0arliament in 4ecember '666. The I4A since its incorporation as a statutory
body in April *555 has fastidiously stuck to its schedule of framing regulations and
registering the private sector insurance companies.
The other decisions taken simultaneously to provide the supporting systems to the
insurance sector and in particular the life insurance companies was the launch of
the I4ADs online service for issue and renewal of licenses to agents.
The approval of institutions for imparting training to agents has also ensured that
the insurance companies would have a trained workforce of insurance agents in
place to sell their products% which are e$pected to be introduced by early ne$t year.
Since being set up as an independent statutory body the I4A has put in a
framework of globally compatible regulations. In the private sector '* life
insurance and general insurance companies have been registered.
34
8/14/2019 unicon investment
35/93
MAJOR DEVELOPMENTS DURIN3 THE >EAR
The year *553!56 witnessed the commercial banks becoming aggressive players in
the home loans market and a dramatic fall in interest rates across all maturities.
This fall in interest rates was driven by the decreasing bank rate and the increased
competition with in the banks themselves and between the Banks and &+-s. There
was a growing emphasis on the adjustable rate loans due to the decreasing interest
rate scenario.
In presenting the "nion Budget for *553!56 the &onDble finance minister
announced that ational &ousing Bank would launch a Mortgage -redit =uarantee
Scheme% which would be provided to all housing loans thereby fully protecting
lenders against default. Towards this end the Asian 4evelopment Bank :A4B;
approved an investment of up to "S9'5 million
(#uivalent in ovember *553 to help pioneer the first mortgage guarantee
company for India. Mortgage financing through the India Mortgage =uarantee
-ompany :IM=-; will help narrow the housing shortfall. The India Mortgage
=uarantee -ompany will improve the efficiency of housing finance and protect
mortgage lenders such as banks and housing finance
-ompanies in cases of borrower default.
35
8/14/2019 unicon investment
36/93
T%e 5rea!"#n #8 IM3C B")
=enerate a greater volume of mortgage lending in the Indian market
7ower down payment re#uirements to as low as /
Broaden the eligibility for mortgages% and
($tend mortgage repayment periods by up to */ years These changes will% in
turn% support capital market development by promoting securiti
8/14/2019 unicon investment
37/93
:The Securitisation Act;% banks have been empowered to attach assets of the
defaulters without intervention of lengthy and time consuming court procedures.
This would help the banks for speedier foreclosure of home loan accounts in
default. &B is also operational
8/14/2019 unicon investment
38/93
-redit risk management in the Indian conte$t means the housing finance company
has to develop certain in!houseElocal standards for measurement of a borrowersD
ability and willingness to repay the loan for the long term% apply those standards%
measure the performance and continually make adjustments to the standards based
upon results. 1perations risk management means establishing the internal capacity
to make good credit
decisions :reduce risk of loss;% while at the same time managing the assets so that
costs are minimiith the e$ception of &4+-% banks and other housing
finance companies have little e$perience in credit and operational risk and
management in the housing finance sector.
In this conte$t the proposed Mortgage =uarantee -ompany :M=-; could have a
significant influence on the housing finance market provided if the M=- is able to
offer reasonable risk pricing for credit and default risk. >ith M=- in place
offering attractive credit risk mitigation% the housing finance
could see many more new players offering home loans with the market becoming
more competitive. There is a lot of optimism at the &B on the growth prospects
of the mortgage market and the e$pectations are also running high on their ability
3!
8/14/2019 unicon investment
39/93
to streamline mortgage legislative environmentP this could further bolster the
market growth and lower the cost of mortgages.
Asset liability mismatch increases the interest rate and li#uidity risk profile of the
&+-s and Banks. The tenure of housing loan has consistently increased from /
years in the past to '/!*5 years at present% however the asset remains in the books
of the lender for 3!'5 years. Banks have the ability to largely mitigate this risk due
to access to diversified resources and lending options. The banking sector% every
year% gets around s ,55! ,/5 billion in savings and demandEcurrent account
deposits out of which around 2/!35 percent can be considered as core float and is
largely long term in nature resulting in banks being largely protected from asset
liability mismatch risk. &owever differences in the maturity profiles of assets and
liabilities continue to be of major concern for &+-Ds.
In future% the ability to foreclose defaulting mortgage assets will become a key
competency for profitability in housing finance market. &+-s and Banks are
increasingly looking at smaller towns for growth. Some &+-s are e$pected to
follow a new business model of becoming the originator of loans% and thereafter
securitising to one of the larger players. As a result% these players will book the
revenues :processing fees; upfront and thereafter
3"
8/14/2019 unicon investment
40/93
Transfer the assets to a larger player :commercial bank or general public; in the
form of portfolio sell out or a MBS. &owever% only &+-s with the ability to raise
good #uality assets and having ade#uate distribution channels are likely to survive
the competition.
4#
8/14/2019 unicon investment
41/93
MUTUAL FUNDS)
Mutual funds are companies that pool funds from a large number of investors and
invest them on their behalf for a financial return by buying% holding and selling
securities. +unds managed by institutional investors are huge and growing rapidly%
particularly as part of the resolution of pension pressures in various parts of the
world. =lobal Assets under Management :A"M; rose per cent to "S 9 )3.*
trillion in the first half of *55)% according to -erulli AssociatesN latest =lobal
"pdate report. -erulli predicts the global compound annual growth rate for the
industry to be 3 per cent between *553 and *556.
41
8/14/2019 unicon investment
42/93
INDIAN MUTUAL FUND INDUSTR>
The history of Indian mutual fund industry can be distinctly divided into two
phases ! the period before liberali
8/14/2019 unicon investment
43/93
Alliance% 0rudential group etc. set up operations in India. As at the end of Ganuary
*55)% there were )) mutual funds with total assets of s. '%*'3%5/5 million.
In +ebruary *55)% the "nit Trust of India Act '6) was repealed and "TI was
broken into two separate entities. 1ne is the Specified "ndertaking of the "nit
Trust of India% still under the control of =overnment of India with A"M of s.
*63%)/5 million as at the end of Ganuary *55). The second is the "TI Mutual +und
7td% sponsored by SBI% 0B% B1B and 7I-. It is registered with S(BI and
functions under the Mutual +und egulations. As at the end of 1ctober )'% *55)%
there were totally )' funds in India% with assets under management of about s.
'%*2%*5 million.
43
8/14/2019 unicon investment
44/93
T(4S I MA?(TI= 1+ M"T"A7 +"4S I I4IA
The changing marketing trends in the mutual fund industry in India can be easily
linked and traced to its history of growth. The changes in marketing strategies can
be characteri
8/14/2019 unicon investment
45/93
time at a price that is linked to the net asset value :AF;. In case of close!ended
schemes% the total si
8/14/2019 unicon investment
46/93
fund companies was to introduce a wide variety of products and due to
oligopolistic competition.
Customer %!nership ocus
Mutual fund companies began to segment their target customers and position their
various products based on the target segment they proposed to address. The target
segment was broadly divided into institutional segment and individual investor
segment. The institutional segment consisted of treasury departments of -orporate%
Trusts etc and suitable products such as Institutional Income schemes and Money
Market schemes were targeted at them. The individual investor was in turn divided
into various segments such as Coung +amilies with small or no children% Middle!
aged 0eople saving for retirement and etired 0eople looking for steady income.
Suitable products such as =rowth and Balanced schemes for young families and
Income schemes for retired people were marketed.
By proper segmentation and by targeting the right product to the right customer%
Mutual +und companies hoped to win the confidence of their customers and NownN
them for a lifetime.
46
8/14/2019 unicon investment
47/93
Speciali&ed Product ' Service ocus
If one observes the trends in the recent past% -ompanies have been taking the
above customer focus further by designing and launching speciali
8/14/2019 unicon investment
48/93
N#n *an?"n' F"nan5"a C#m&an"e$
on!Banking +inancial -ompanies :B+-s; are a set of financial service
companies that are #uite uni#ue to India in terms of their si
8/14/2019 unicon investment
49/93
This enabled them to build up a wide!ranging clientele from small borrowers to
establish corporate.
Based on the principal activity carried out by the company% B+-s were classified
by BI under five main categories ! (#uipment leasing company :(7;% &ire
0urchase finance company :&0;% Investment company :I-;% 7oan company :7-;
and esiduary non!banking company :B-s ! large companies not coming under
any one particular category;. B+-s achieved their
8/14/2019 unicon investment
50/93
COMPAN> PROFILE
UNICON INVESTMENT SOLUTIONS
"I-1 is a financial services company which has emerged as a one!stop
investment solutions provider. It was founded in *55, by two visionary and
flamboyant entrepreneurs% Mr. =ajendra agpal and Mr. am M. =upta% who
possess e$pertise in the field of +inance. The company is head#uartered in ew
4elhi% and has its -orporate office in Mumbai with regional offices in ?olkata%
-hennai% &yderabad and oida
"I-1 is a professionally managed company% lead by a team with outstanding
managerial acumen and cumulative e$perience of more than *55 years in the
financial markets. The company is supported by more than )/55 "niconians and
has an e$tensive network of over '55 branches% 55 plus business partner locations
*/55 remisers providing it with a national footprint.
>ith a customer base of over *55%555% the "I-1 =roup has an eye for the
intricate financial needs of its clients and caters to both their short term and long
term financial needs through a comprehensive bou#uet of investment services.
These services range from offline online trading in e#uity% commodities and
currency derivatives to debt markets to corporate finance and portfolio
management services. The company has a si
8/14/2019 unicon investment
51/93
)rd party financial products like mutual funds% insurance products and property
broking. It also provides e$pert Advisory on 7ife Insurance% =eneral Insurance%
Mutual +unds and I01Ds. The distribution network is backed by in!house back
office support to provide prompt and efficient customer service
The (#uity broking arm K "I-1 Securities 0vt. 7td offers personaliorth Individuals. The -orporate Advisory
Services arm K "nicon -apital Services :0; 7td offers entire gamut of Investment
Banking services to corporates.
"I-1 can boast of some of the most respected names in the 0rivate (#uity
space like Se#uoia -apital and e$us India -apital as its share holders.
51
8/14/2019 unicon investment
52/93
M"$$"#n V"$"#n
M"$$"#n )
To create long term value by empowering individual investors through superior
financial services supported by culture based on highest level of teamwork%
efficiency and integrity.
V"$"#n )
To provide the most useful and ethical Investment Solutions ! guided by values
driven approach to growth% client service and employee development.
52
8/14/2019 unicon investment
53/93
MANA3EMENT TEAM
Mr. 3aen@ra Na'&a
+ounder -(1
Mr. Ram M 3u&!a
-o!+ounder 0resident
Mr. >.P. Naran'
&ead ! +i$ed Income =roup
Mr. San@ee& Ar#ra
-hief 1perating 1fficer
Mr. V"?a$ Maan
-hief +inancial 1fficer%
&ead K 4istribution
Mr. Tr"na@% K"ran
ational &ead:(!Broking;
Mr. Su%a$% Na'&a
4irector ! Strategic
0lanning 4istribution
M$. Ana" Mu?%"a
-hief -ompliance 1fficer
53
8/14/2019 unicon investment
54/93
Mr. V"a7 C%#&ra
ational &ead :Business Alliances;
Mr. Anura' Na7ar
-hief Technology 1fficer
Mr. A$%"$% Ku?rea
&ead &I -lient elations
M$. Dee&a M#%ame@
&ead !& Training
Mr. San@ee& Ma%aan
&ead :(#uity Broking!1ffline
54
8/14/2019 unicon investment
55/93
"nicon Tie up with various insurance companies@
'. Tata AI= life insurance
*. SBI life insurance
). Ma$ new Cork life insurance
,. eliance
/. Birla sun life
. 7ife insurance corporation of india
2. ?otak Mahindra
3. Met life
". I-I-I prudential
55
8/14/2019 unicon investment
56/93
PRODUCT
EUIT>
Un"5#nPu$
Browser based trading terminal that can be accessed by a uni#ue I4 and password.
This facility is available to all our online customers the moment they get registered
with us.
Fea!ure$)
Trading at S(%BS( and 4erivatives on single screen.
Add multiple scrips on the market watch.
=reater e$posure for trading on the available margin.
-ommon window for display of market watch and order e$ecution.
eal time updating of e$posure and portfolio while trading.
1ffline order placement facility.
56
http://www.uniconindia.in/OnlineServices/Equity.aspx?id=1http://www.uniconindia.in/OnlineServices/Equity.aspx?id=18/14/2019 unicon investment
57/93
Stop!loss feature.
-ompetitive Brokerages.
Banking integration with I-I-I Bank% &4+- Bank A$is Bank.
0ro$y link to enable trading behind firewalls.
Un"5#nSB"8!
Application based terminal for active traders. It provides better speed% greater
analytical features priority access to elationship Managers.
Fea!ure$)
Trading at S(%BS( and 4erivatives on single screen.
Add any number of scrips in the Market >atch.
Tick by tick live updation of Intraday chart.
=reater e$posure for trading on the margin available
-ommon window for market watch and order e$ecution.
?ey board driven short cuts for punching orders #uickly.
5
http://www.uniconindia.in/OnlineServices/Equity.aspx?id=1http://www.uniconindia.in/OnlineServices/Equity.aspx?id=18/14/2019 unicon investment
58/93
eal time updation of e$posure and portfolio.
+acility to customi
8/14/2019 unicon investment
59/93
C#mm#@"!7
Un"5#n offers a uni#ue feature of a single screen trading platform in M-J and
-4(J."nicon offers both 1ffline 1nline trading platforms. Cou can >alk in
or place your orders through telephone at any of our branch locations
1nline -ommodity Internet trading 0latform through "ni+le$.
7ive Market >atch for commodity market :-4(J% M-J; in one screen.
Add any number of scrips in the Market >atch.
Tick by tick live updation of Intraday chart.
=reater e$posure for trading on the margin available
-ommon window for market watch and order e$ecution.
?ey board driven short cuts for punching orders #uickly.
eal time updation of e$posure and portfolio.
+acility to customi
8/14/2019 unicon investment
60/93
De$"!#r7
Un"5#n De$"!#r7 Ser6"5e$ offers demateriali
8/14/2019 unicon investment
61/93
Cou can submit your physical shares at the "nicon branch for
demateriali
8/14/2019 unicon investment
62/93
Cou can view your demat account over the Internet and avail a host of services.
This facility empowers our clients to view% download% print updated holdings with
respective valuations.
IPO
At "nicon you can invest in the 0rimary markets :Initial 0ublic 1fferings;
online without going through the hassles of filling up any I01 application forms or
any other paperwork.
>e shall make sure that you do not miss the opportunity to subscribeEinvest in a
good I01 issue by providing you an online I01 application form% transfer of funds
online through secured payment =ateways of leading banks like I-I-I% &4+-%
AJIS bank.
In addition to the above we shall provide you with the In!4epth analysis of the I01
issues which shall be hitting the Indian Markets in near future% I01 -alendar%
analysis on the recent I01 listings% prospectus% offer documents and other I01
research reports so as to help you take an informed decision to invest in the I01
issues.
62
8/14/2019 unicon investment
63/93
1nline I01 facility is open to all our registered clients at no cost whatsoever. All
you need is the following to subscribe online to the I01 issues@
A trading account with "nicon
A 4emat account with "nicon
An access to the net banking facility with the Banks through which "nicon has
operational =ateway facility :I-I-I% &4+- and AJIS Bank;.
Cou must have signed a 0ower of Attorney :01A; agreement for applying in
I01Ds online.
63
8/14/2019 unicon investment
64/93
Mu!ua Fun@
Un"5#n 0rovides e$pert advice to its clients for their investments in e#uity debt
markets through Mutual +unds.
1ur e$perts advice you the best investment solutions that suit you and help you to
reach your financial goals.
They help you ascertain your risk profile guide you with the right product mi$
which reduce your ta$ liability% increase your savings enhance your wealth.
>hether you have a conservative% medium or aggressive investment risk appetite%
our e$perts would guide you to build a portfolio to optimi
8/14/2019 unicon investment
65/93
Income schemes
Balanced schemes
Money market schemes
). By 1ther Schemes
Ta$ saving schemes
Special schemes
Inde$ Schemes
Sector specific schemes
65
8/14/2019 unicon investment
66/93
In$uran5e
Un"5#n offers all products of =eneral Insurance under one umbrella. "nicon
comprises of a team of distinguished professionals from insurance% finance and
other management disciplines who have vast business managerial e$perience.
"nicon team evaluates the clientNs business environment and studies the risk
profile. based on the results of these evaluations% "nicon team then suggests the
most cost effective % integrated insurance package that is perfectly suited to the
clientNs risk profile.
"nicon has a nationwide network of branches all over India% e#uipped with top
#uality infrastructure facilities% to provide you prompt efficient service.
L"8e In$uran5e
"nicon offers you a 0eace of Mind by offering various life insurance plans for
your uni#ue specific needs. 1ur philosophy is that for every financial problem%
there is a solution also. And we are here to give you complete financial solutions.
66
8/14/2019 unicon investment
67/93
At the same time we offer you very 0rompt eliable 0olicy related service for
enduring relationship.
They offer a very wide range of products to fulfill your particular re#uirements.
Cou can always have an access to our 3) Branch 1ffices situated at prime
locations of the city% or you can call our elationship Manager to guide on your
Investments.
+ollowing is the glimpse of 7ife Insurance 0lans@
0rotection 0lans
Investment 0lans
-hild 0lans
etirementE0ension 0lans
Saving 0lans
I 0lans
&ealth 0lans
6
8/14/2019 unicon investment
68/93
In6e$!men! *an?"n'
O6er6"eB
The Investment Banking arm of "nicon -apital Services :0; 7td. caters to the
funding re#uirements of corporates. 1ur wide e$perience and market knowledge as
a leading securities firm ensures that clientsD re#uirements are met at optimum
cost. By constantly improving our knowledge capital and remaining focused on
client needs% we aim to create significant value for our clients by helping them
e$ecute the right capitalie also intend to initiate merchant
banking services :-apital Markets +undraising; in the short term :Merchant
Banking 7icense pending;
O88er"n'$
Pr"6a!e Eu"!7 (PE S7n@"5a!"#n
6!
8/14/2019 unicon investment
69/93
They speciali
8/14/2019 unicon investment
70/93
0roject +inance E Term 7oans for ($pansion ! Arranging 7ong!term loans
for setting up new projects from +inancial Institutions and Banks
($ternal -ommercial Borrowings :(-Bs; ! Arranging 7IB1!linked loans
+oreign -urrency -onvertible Bonds :+--B;!Arranging +--B 7oans
>orking -apital +acilities ! Arranging fund!based and non!fund based
limits for clients from Banks at competitive rates
Trade +inance ! Arrangement of trade finance :BuyerNs E SupplierDs -redit;
Inter!-orporate 4eposits K Borrowing and 0lacement
#
8/14/2019 unicon investment
71/93
O*JECTIVES OF THE STUD>
To find the market potential and market penetration of "I-1
IF(STM(T S17"TI1 product offerings in ew delhi.
To collect the real time information about preference level of customers
using 4emat account and their inclination towards various other brokerage
firms e.g. Indiabulls% Sharekhan% Indiainfoline% eligare% Alankit % "nicon.
To e$pand the market penetration of "I-1 IF(STM(T S17"TI1.
To provide pricing strategy of competitors to fight cut throat competition. To
increase the product awareness of "I-1 IF(STM(T S17"TI1 as
single window shop for investment solutions
1
8/14/2019 unicon investment
72/93
RESEARCH METHODOLO3>
Re$ear5% @e$"'n an@ me!%#@##'7
It was important to collect detailed information on various aspects for effective
analysis. As QMarketing today is becoming more of a battle based on information
based society companies with superior information enjoys a competitive
advantage.
Me!%#@##'7 A@#&!e@
The information was collected through person interview and interview was
conducted through the mode of #uestionnaire.
Ana7$"$ #8 Da!a
Da!a 5#e5!"#n
The data collection was collected through primary as well as secondary source.
PRIMAR> DATA )
Primary data was collected from '// respondents using a schedule of #uestion and
a survey was conducted. The tabular and graphical data was Microsoft e$cel.
2
8/14/2019 unicon investment
73/93
SECONDAR> DATA )
Secondary data was collected mainly from internet %printed journals on the capital
markets of India %newspaper articles and books written on the Indian stock
markets.
SAMPLIN3)
Judgment% non!random sampling was used. espondents were re#uest to
help with the schedule at their offices% homes or at the "I-1
IF(STM(T S17"TI1 office.
3
8/14/2019 unicon investment
74/93
DATA ANAL>SIS
$%T% %&%'(SIS 1. )re*erence o* in+estment
FI4.5.1 Result o* )re*erence o* in+estment
Inter)retationTis data so/s tat te mutual *undmar0et is on te rise yet,so te most *a+ored
in+estment continues to e in te sare mar0et.so /it
te more trans)arent system,in+estment in te mar0et
can de*initely e increased.
4
8/14/2019 unicon investment
75/93
a.Awareness of unicon facilities
Fig4.5.4 Result of
Awareness of unicon facilities
Interpretation:although there is sufficiently high brand equity among the
target audience yet,it is to be noted that the consumer are not aware of the
facilities provided by company meaning thereby company shouldconcentrate more towards promotional tools and increase it focus on
product awareness rather than brand awareness.
5
!#
2#
&o
(es
8/14/2019 unicon investment
76/93
.!A6arene77 o unicon
in8e7t9ent 7o:ution7
as a rand
Fig -!*!. Re7u:t + A6arene77 o unicon
a7 a ;rand
Inter)retation Tis gra) cart so/s tat unicon as a
reasonale amount o* rand a/areness in terms o* ain+estment com)any.tis rand image sould e *urter
le+eraged y te com)any to increase its mar0et sare
o+er its com)etitors.
6
8/14/2019 unicon investment
77/93
ABarene$$ #n On"ne S%are Tra@"n'
F"'/.,.0 Re$u! #8 ABarene$$ #8 On"ne S%are Tra@"n'
In!er&re!a!"#n@ >ith the increase in cyber education% the awareness towards
online share trading has increased by leaps and bounds. This awareness is e$pected
to increase further with the increase in Internet education.
1. ABarene$$ #8 UNICON INVESTMENT SOLUTION In6e$! $mar!
a$ a *ran@
8/14/2019 unicon investment
78/93
F"'/.,.+ Re$u! #8 ABarene$$ #8 Re"an5e m#ne7 a$ a *ran@
In!er&re!a!"#n) This pie!chart shows that reliance money has a reasonable amount
of Brand awareness in terms of a premier etail stock broking company. This
brand image should be further leveraged by the company to increase its market
share over its competitors.
0. Sa!"$8a5!"#n Le6e am#n' Cu$!#mer$ B"!% 5urren! r#?er
!
8/14/2019 unicon investment
79/93
F"'/.,., Re$u! #8 $a!"$8a5!"#n e6e am#n' 5u$!#mer$ B"!% 5urren! r#?er
In!er&re!a!"#n@ This pie!chart corroborate the fact that Strategic marketing% today%
has gone beyond only meeting Sales targets and generating profit volumes. It
shows that all the competitors are striving hard not only to woo the customers but
also to make them Brand loyal by generating customer satisfaction.
"
8/14/2019 unicon investment
80/93
Freuen57 #8 Tra@"n'
F"'/.,.< Re$u! #8 Freuen57
#8 Tra@"n'
In!er&re!a!"#n@ Inspite of the huge returns that the share market promises% we see
that there is still a dearth of active traders and investors. This is because of the non
K transparent structure of the Indian share market and the skepticism of the target
audience that is generated by the volatility of the stock market. It re#uires efficient
bureaucratic intervention on the part of the =overnment.
!#
8/14/2019 unicon investment
81/93
+. Per5en!a'e #8 earn"n'$ "n6e$!e@ "n S%are Tra@"n'
In!er&re!a!"#n@ This shows that people invest only upto '5 of their
earnings in the stock market% again reiterating the volatile and non!transparent
structure of the Indian stock market. &ence% effective and efficient steps should be
undertaken to woo the customers to invest more in the lucrative stock market.
!1
F"'/.,.1 Re$u! #8 &er5en!a'e #8 earn"n' "n6e$!e@
"n $%are !ra@"n'
8/14/2019 unicon investment
82/93
CONCLUSIONS
To get initial success in this field is very difficult. Although the business
generation becomes easier with time as we serve more people who then get added
up in the loyal clientage. Thus time and service are two most factors to get in this
field.
Also the corporate remains a very important segment which gets business in bulk
but retail cannot be ignored which makes your business ticking.
-ustomer remains in the pivotal position.
Based on the findings of our project we would like to suggest the following@!
'. After sales services and follow up calls are important for getting new
references so trained telesales should be appointed for this purpose whose
sole work should be to make feedback calls.
2. Investment is having too many financial products right from 4emat account
to =eneral Insurance and not all the salespeople are familiar with each and
every product so the work force should be segregated each group dealing in
a specific product and the sales target should be given likewise.
!2
8/14/2019 unicon investment
83/93
). >hile interacting with the investors I found that most of the customers are
unaware about the Mutual fund. Some of the people look upon mutual funds
and e#uity trading as gambling. Thus a mutual fund awareness program can
help to increase the penetration of mutual funds in the market.
,. IF(STSMAT should declare in black ink that they will charge just '
paisa per transaction. 0eople tend to think that there must be some hidden
charges.
/. s6/5 account opening charges are too high when targeting a corporate so
the company should be fle$ible on this amount.
. IF(STSMAT should provide periodic training for updating the product
knowledge of various financial advisors.
2. -ompany should have a scheme of rewards and recognition to employees
and the field persons to boost their motivation.
!3
8/14/2019 unicon investment
84/93
KE> ISSUES AND CONCLUSIONS
Based on the above S>1T analysis and study of the available data I have come
to the following conclusions@
HU3E POTENTIAL@
'. All though relatively new entrants in the market% IF(STSMAT is slowly
but surely gaining a strong hold because it is finally able to grasp the
investment climate in 4elhi. Secondly the branch managers at all the
branches are very knowledgeable with a lot of e$perience in the financial
markets so under their leadership can definitely e$pand its base
*. The entire workforce consists of mostly youngsters% which means they can
be encouraged and motivated to do good work because they have a long way
to go and most of them are eager to climb the ladder.
). ight now eliance is at its nascent stage and will surely grab the major
market under its belt very soon like in other fields.
!4
8/14/2019 unicon investment
85/93
Hu'e "n6e$!men!$ !a?"n' &a5e@
a. The Stock Market has been very buoyant until now especially in the
past ) years. This particular trend is very favorable because a soaring
S(S(J means higher returns% which encourages the investors to
invest their money in the market. Although in the past ) months the
market has shown very unpredictable trend and has already lost over
'555 points.
b. So in order to make the best the only thing re#uired is to recruit more
field staff who should be trained in a proper way to get better results.
c. In case of insurance% it re#uires push selling because people always
associate it with emergencies and unpleasant situations like death and
they donDt want to think about such situation let alone prepare for
them% which means it re#uires a lot of conviction on part of the
e$ecutives.
!5
8/14/2019 unicon investment
86/93
Lar'e un!a&&e@ mar?e!@
0eople have just opened up to the idea of "7I0s because till now they knew
only two kinds of insurance plans% endowment and term plans so the concept of
high returns with protection is very new to them and slowly and slowly these are
becoming popular so there is a huge market waiting to be tapped.
In the past few years there has been a tremendous inflow of funds in the
Indian market which has lead to the sky rocketing S(S(J. In fact there has been
a tremendous response from the investors not only in shares but mutual funds as
well. The s/255-r infused in the market through the &SB- IF(STSMAT
(#uity mutual +unds is an e$ample of the growing trust of investors who earlier
shied from such investments due to stock market fiascos like the &arshad Mehta
scam or the "S, disaster in which investors lost huge amounts of money as well
as their trust in financial instruments.
>ith the +4I limits being rela$ed% a lot of avenues will open up in the
insurance sector and insurance companies are e$pected to come up with new plans
with a great deal of customi
8/14/2019 unicon investment
87/93
RECOMMENDATIONS
The company should effectively focus on advertising.
The company should make more aware to the customer about their investment
process.
Company must provide full information to their employee about sector and there
product and services in which its deals.
Company basically deals in customer relationships it must provide more and
more training and development programme to their relationship manager.
Company must focus on the need and wants of the customer as well as after
sales services, to make the customer more loyal.
Company must give reliable and full information to their customer about their
product and services, and also there benefits.
Company should take care of their employee by giving them cash incentive or
taking those people abroad who have achieve their target or make a large-
volume of sales. nd also give catered meals to staff that work long hours or
those working during peak hours.
!
8/14/2019 unicon investment
88/93
!astly taking the feedback from customer so as to better tune its services with
the customer needs.
!!
8/14/2019 unicon investment
89/93
LIMITATIONS
L"m"!a!"#n$ an@ C#n$!ra"n!$
T"me C#n$!ra"n!$@
Time is that factor which cannot be hold by anyone% ones it goes never comes
back.
The researcher found lack of time and done a precise in!dept study and bring out
the available data and information.
Re$#ur5e C#n$!ra"n!$)
(arlier there was not that much researches had been conduct on this topic% so the
researcher find it difficult to group the information and get the best output.
As the researcher had only used the secondary data the lack or impropriety in the
secondary data will also present in the research project
!"
8/14/2019 unicon investment
90/93
APPENDI=
UESTIONNAIRE
:. In B%"5% #8 !%e$e F"nan5"a In$!rumen!$ @# 7#u "n6e$! "n!#
Shares Mutual +unds Bonds 4erivatives
0. Are 7#u aBare #8 #n"ne S%are !ra@"n'
Ces o
+. Hear@ a#u! UNICON INVESTMENT SOLUTION INVESTSMART
Ces o
/. D# 7#u ?n#B a#u! !%e 8a5""!"e$ &r#6"@e@ 7 UNICON INVESTMENT
SOLUTION INVESTSMART
Ces o
/. D# 7#u ?n#B a#u! !%e 8a5""!"e$ &r#6"@e@ 7 UNICON INVESTMENT
SOLUTION INVESRTSMART
Ces o
"#
8/14/2019 unicon investment
91/93
,. 2"!% B%"5% 5#m&an7 @# 7#u %a6e 7#ur DEMAT a55#un!
eliance money I-I-I 4irect "I-1 India Bulls
1thers :please specify;
8/14/2019 unicon investment
92/93
'. *. ).
,. /.
:/. 2%a! m#re 8a5""!"e$ @# 7#u !%"n? 7#u reu"re B"!% 7#ur DEMAT
a55#un!
"2
8/14/2019 unicon investment
93/93
*I*LIO3RAPH>
Ar!"5e$
Capital Market eview *55)!5,%0ublished by S&-I7
*##?$
+inancial Management 0rashanna -handra%thedition
+inancial Management ?han Gain %)th edition
Securities Analysis and 0ortfolio Management %+ischer Gordon
esearch Methodology% 4avid .. -ooper and Schindler
2e$"!e$
www.unicon.co.in
www.icicidirect.com
www.investsmart.com
www.nseindia.com
http://www.unicon.co.in/http://www.icicidirect.com/http://www.investsmart.com/http://www.nseindia.com/http://www.unicon.co.in/http://www.icicidirect.com/http://www.investsmart.com/http://www.nseindia.com/