Online and Offline Trading
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A REPORT ON INTERNSHIP TRAINING Undergone at ADITYA BIRLA MONEY. For the partial fulfillment of the requirement of MASTER OF BUSINESS ADMINISTRATION DEGREE Submitted by Mr.KUSHAl.H Register No.10230155 SCHOOL OF MANAGEMENT D.G.VAISHNAV COLLEGE CHENNAI-600106 2010-2012
Transcript of Online and Offline Trading
A REPORT
ON
INTERNSHIP TRAINING
Undergone at
ADITYA BIRLA MONEY.For the partial fulfillment of the requirement of
MASTER OF BUSINESS ADMINISTRATION DEGREE
Submitted by Mr.KUSHAl.H
Register No.10230155
SCHOOL OF MANAGEMENT
D.G.VAISHNAV COLLEGE
CHENNAI-600106
2010-2012
A REPORT
ON
INTERNSHIP TRAINING
Undergone at
ADITYA BIRLA MONEY.For the partial fulfillment of the requirement of
MASTER OF BUSINESS ADMINISTRATION DEGREE
Submitted by Mr.KUSHAL.H
Register No.10230155
SCHOOL OF MANAGEMENT
D.G.VAISHNAV COLLEGE
CHENNAI-600106
2010-2012
CERTIFICATE
This is to certify that this Internship training report is submitted by
Mr.Kushal.H a bonafide student of First year, Master of Business
Administration, School of Management, D.G.Vaishnav College,
Chennai-600106 who had undergone training at ADITYA BIRLA MONEY, from
16th May 2011 to 14th June 2011 in Partial fulfillment of the requirement for the
degree of Master of Business Administration
Faculty in Charge
(Mrs.P.C.GITA)
College seal
ACKNOWLEDGEMENT
I extend my sincere thanks to Mr.V.GANESHAN, DEAN, School of Management. D G Vaishnav College, Arumbakkam, CHENNAI, for having given me an opportunity to undergo the Institutional training at ADITYA BIRLA MONEY.
I express my heartfelt thanks to Dr. (Mrs.) ASHWINI RAVI, DIRECTOR
School of Management. D G Vaishnav College, Arumbakkam,CHENNAI, for her kind co-operation, Invaluable guidance and More over Personal care for the completion of my report successfully. I also thank Mrs.P.C.GITA and other Lectures of the department for their consistent Guidance.
I would be failing in my duty if I do not express my sincere thanks to Mr.Neeraj Nair and the staff of ADITYA BIRLA MONEY for providing all facilities to complete the training successfully.
DATE:
PLACE: Chennai (KUSHAL.H)
INTRODUCTION
“Study on Online and Offline Share Trading”.
About Aditya Birla Money:
Aditya Birla Money Limited formerly known as Apollo Sindhoori Capital Investments is a leading player in the broking space with nearly 15 years of experience. It became a part of Aditya Birla Group in March2009, when the group acquired 76% of the company.
IMPORTANCE OF THE TOPIC
The security and exchange board of India has permitted such trading on January-31-2000. After that many players have offered these services to the investors. Is trading through Internet safe? What ifSomeone steal my investments or, does anyone else have access to my accounts? If these are the questions that stop you from online share trading then the solutions are here. Which decade you are living in? Internet trading today is one of the largest mediums of investments and nothing can compete with it.
The Objective of Project is:
Ø Money.
Ø To study the existing online & offline share trading scenario with respect to Aditya Birla
Ø To study the importance of IT in investment.
CONTENTS
CHAPTER NO
PARTICULARS PAGENO
1 INDUSTRY INTRODUCTION &COMPANY INTODUCTION
2 ORGANISATION CHART &PRODUCT PROFILE
3 WEALTH MANAGEMENT
4 “ONLINE AND OFFLINE TRADING”
5 MARKETING & FINANCERESEARCH REPORT
6 CONCLUSION
ANNEXURES
INDUSTRY INTRODUCTION &
COMPANY INTODUCTION
Chapter No: 1 Industry Introduction & Company Introduction
INDUSTRY INTRODUCTION
Indian Financial System
The economic development of a nation is reflected by the progress of the
various economic units, broadly classified into corporate sector, government and
household sector. While performing their activities these units will be placed in a
surplus/deficit/balanced budgetary situations.
There are areas or people with surplus funds and there are those with a
deficit. A financial system or financial sector functions as an intermediary and
facilitates the flow of funds from the areas of surplus to the areas of deficit. A
Financial System is a composition of various institutions, markets, regulations and
laws, practices, money manager, analysts, transactions and claims and liabilities.
Financial System:
The word "system", in the term "financial system", implies a set of complex
and closely connected or interlined institutions, agents, practices, markets,
transactions, claims, and liabilities in the economy. The financial system is
concerned about money, credit and finance-the three terms are intimately related
yet are somewhat different from each other. Indian financial system consists of
financial market, financial instruments and financial intermediation. These are
briefly discussed below;
FINANCIAL MARKETS :
A Financial Market can be defined as the market in which financial assets
are created or transferred. As against a real transaction that involves exchange of
money for real goods or services, a financial transaction involves creation or
transfer of a financial asset. Financial Assets or Financial Instruments represents a
claim to the payment of a sum of money sometime in the future and /or periodic
payment in the form of interest or dividend.
Money Market- The money market ifs a wholesale debt market for low-
risk, highly-liquid, short-term instrument. Funds are available in this market for
periods ranging from a single day up to a year. This market is dominated mostly
by government, banks and financial institutions.
Capital Market - The capital market is designed to finance the long-term
investments. The transactions taking place in this market will be for periods over a
year.
Forex Market - The Forex market deals with the multicurrency
requirements, which are met by the exchange of currencies. Depending on the
exchange rate that is applicable, the transfer of funds takes place in this market.
This is one of the most developed and integrated market across the globe.
Credit Market- Credit market is a place where banks, FIs and NBFCs
purvey short, medium and long-term loans to corporate and individuals.
1. Mutual Funds:
A Mutual Fund is a body corporate registered with SEBI that pools money
from a number of individuals/corporate investors and is used by the fund manager
to invests in a variety of different financial instruments or securities such as equity
shares, Government securities, Bonds, debentures etc according to the objective of
the scheme. By this method, you can achieve a much wider spread of investments
than if you were investing directly in the underlying investments. It is widely
accepted that by spreading your investment you are spreading your risk, therefore
investing in mutual funds is considered to be of lower risk than direct investment.
When you invest in mutual funds, you do not own the underlying
investments but have a claim to a number of units in the fund representing the size
of your investment. The value of each unit of the mutual fund scheme, calculated
based on the market value of the underlying investments after deducting expenses
and liabilities, is referred to as the ’Net Asset Value’. The working of a mutual
fund can be understood from the chart.
2. Insurance:-
Insurance in its basic form is defined as “ A contract between two parties
whereby one party called insurer undertakes in exchange for a fixed sum called
premiums, to pay the other party called insured a fixed amount of money on the
happening of a certain event."
In simple terms it is a contract between the person who buys insurance and
an Insurance company who sold the Policy. By entering into contract the Insurance
Company agrees to pay the Policy holder or his family members a predetermined
sum of money in case of any unfortunate event for a predetermined fixed sum
payable which is in normal term called Insurance Premiums.
Insurance is basically a protection against a financial loss which can arise on
the happening of an unexpected event. Insurance companies collect premiums to
provide for this protection. By paying a very small sum of money a person can
safeguard himself and his family financially from an unfortunate event.
3. Stock Market:-
History of Stock Market:-
The origin of the stock market in India goes back to the end of the eighteenth
century when long-term negotiable securities were first issued. However, for all
practical purposes, the real beginning occurred in the middle of the nineteenth
century after the enactment of the companies Act in 1850, which introduced the
features of limited liability and generated investor interest in corporate securities.
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 Ahmedabad (1894), Calcutta (1908),
and Madras (1937). In addition, a large number of ephemeral exchanges emerged
mainly in buoyant periods to recede into oblivion during depressing times
subsequently.
Stock exchanges are intricacy inter-woven in the fabric of a nation's
economic life. Without a stock exchange, the saving of the community- the sinews
of economic progress and productive efficiency- would remain underutilized. The
task of mobilization and allocation of savings could be attempted in the old days
by a much less specialized institution than the stock exchanges. But as business
and industry expanded and the economy assumed more complex nature, the need
for 'permanent finance' arose. Entrepreneurs needed money for long term whereas
investors demanded liquidity – the facility to convert their investment into cash at
any given time. The answer was a ready market for investments and this was how
the stock exchange came into being.
4. Real Estate:-
Characteristics of the Real Estate Market in India:-
1. Growing Market Demand:-
Realization of large commercial projects
IPOs by developers
Gradual organization of the markets in the Tier I cities
2. Greater availability of information:-
Emergence of transparency and liquidity
Entry of international real estate consultancies
Governing legal framework relaxed
Competitive pricing
5. Fixed Deposit:-
They cover the fixed deposits of varied tenors offered by the commercial
banks and other non-banking financial institutions. These are generally a low risk
prepositions, as the commercial banks are believed to return the amount due
without default. Mostly these Fixed Deposits are the preferred choice of risk-
averse Indian investors who rate safety of capital & ease of investment above all
parameters. Largely, these investments earn a marginal rate of return of 6-8% per
annum.
6. Bonds:-
Bonds refer to debt instruments bearing interest on maturity. In simple
terms, organizations may borrow funds by issuing debt securities named bonds,
having a fixed maturity period (more than one year) and pay a specified rate of
interest on the principal amount to the holders. A bond is generally a promise to
repay the principal along with a fixed rate of interest on a specified date. The
central or state government, corporations and similar institution issue bonds. Few
of the government bonds are national saving certificates, Kisan Vikas Patra, Post
Office Deposits, Provident Funds, etc. These schemes are risk free, as the
government does not default in payments. However, the interest rates offered by
them are in the range of 7% -9%.
7. Commodities:-
A commodity is a basic good representing a monetary value. Commodities
are mostly used as inputs in the production of other goods or services. With the
advent of new online exchange, commodities can now be traded in futures markets.
The following are some of the commodities that are traded in the commodity
market.
Precious Metals : Gold and Silver
Base Metals : Copper, Zinc, Steel and Aluminum
Energy : Crude Oil, Brent Crude and Natural Gas
Pulses : Chana, Urad and Tur
Spices : Black Pepper, Jeera, Turmeric and Red Chili
Others : Guar Complex, Soya Complex, Wheat and Sugar.
COMPANY INTRODUCTION
ABOUT THE ORGANISATION
Aditya Birla Group
The Aditya Birla Group (www.adityabirla.com), a US $28 billion
conglomerate, is among the largest business houses in India. It enjoys a leadership
position in all the sectors in which it operates. It is anchored by a force of 100,000
employees, belonging to 25 nationalities. Its operation spans 25 countries across
six continents and is reckoned as India's first multinational corporation.
Headquartered in Mumbai, India, over 60 per cent of the Group's revenues flow
from our overseas operations. The Group nurtures a work culture where success is
built on learning and innovation. The Aditya Birla Group has been adjudged ‘The
Best Employer in India and among the top 20 in Asia’ by the Hewitt, Economic
Times and Wall Street Journal Study in the year 2007.
A US$ 29 billion corporation, the Aditya Birla Group is in the League of
Fortune 500. It is anchored by an extraordinary force of 130,000 employees,
belonging to 30 different nationalities. In the year 2009, the Group was ranked
among the top six great places for leaders in the Asia-Pacific region, in a study
conducted by Hewitt Associates, RBL Group and Fortune magazine. In India, the
Group has been adjudged the best employer in India and among the top 20 in Asia
by the Hewitt-Economic Times and Wall Street Journal Study 2007.
Over 60 per cent of the Group's revenues flow from its overseas operations.
The Group operates in 25 countries – India, UK, Germany, Hungary, Brazil, Italy,
France, Luxembourg, Switzerland, Australia, USA, Canada, Egypt, China,
Thailand, Laos, Indonesia, Philippines, Dubai, Singapore, Myanmar, Bangladesh,
Vietnam, Malaysia and Korea.
Beyond Business:
Transcending business for over 50 years now, the Group has been and
continues to be involved in meaningful welfare-driven initiatives that
distinctly impact the quality of life of the weaker sections of society in India,
South-East Asia and Egypt.
In India, the Group's social projects span 2,500 villages. It reaches out to six
million people annually through theAditya Birla Centre for Community
Initiatives and Rural Development, spearheaded by Mrs. Rajashree Birla. Its
focus is healthcare, education, sustainable livelihood, infrastructure and
espousing social causes.
The Group runs 42 schools, which provide quality education to over
45,000 children in India's interiors. Of these, 18,000 children receive free
education. An additional 8,000 students receive merit scholarships. Likewise
at its 18 hospitals in India, more than 500,000 patients are given extremely
subsidised medical care.
The Group transcends the conventional barriers of business and reaches
out to the marginalised because of its conviction of bringing in a more
equitable society.
ADITYA BIRLA MONEY LIMITED
Aditya Birla Money Ltd, formerly known as Apollo Sindhoori Capital Investment Ltd is a leading player in broking space. The company is principally engaged in the business of stock broking and related activities. The company offers services such as, trading facility in equity segment on and derivative segment on NSE & BSE through a single screen; trading facility in commodity segment, including bullion, oils, gaur seed etc through their subsidiary; depository Participant services of NSDL and CDSL at major locations; Online bidding for IPO and distribution of mutual fund. The company is headquartered in Chennai. They are having a strong distribution network of over 221 own and 687 franchisee branches, a large customer base in excess of 175,000 and a scalable business model based on a strong technology backbone and a wide product mix. The company commenced their operations in Chennai in the year 1996. They spent their initial time in establishing and consolidating their presence throughout South India. Until 2001, they established their presence in 13 locations throughout the South India. Within four years, they established their presence in over 350 locations all over the country. In August 28, 2008, the company entered into Share Purchase Agreement with Aditya Birla Nuvo Ltd for sale of 56% equity shares of the company. Pursuant to this agreement, Aditya Birla Nuvo Ltd made an open offer for
purchase of 20% equity shares of the company, which was completed on February 24, 2009. As a result, the company became a subsidiary of Aditya Birla Nuvo Ltd with effect from March 6, 2009. The company changed their name from Apollo Sindhoori Capital Investments Ltd to Aditya Birla Money Ltd with effect from August 3, 2009.
Background & Inception of the Company
Incorporation
Year1995
Registered
Office
Ali Towers, No 55 Greams Road,
Chennai,
Tamil Nadu-600006
Telephone 91-44-39190000/39190001
Fax 91-44-28290835
Chairman
Managing
DirectorKanwar Vivek
Company
SecretaryS Balaji
Auditor S R Batliboi & Associates
Face Value 1
Market Lot 1
Listing Chennai,Mumbai,NSE
Registrar
Cameo Corporate Services Ltd
Subramanian Building,1ST Floor No
1,Club House Road, Chennai – 600002
Nature of Business Carried
Vision, Mission & Quality Policy
Our Vision
“To be a leader and role model in financial services sector with a broad
based and integrated business”
Our Mission
“To deliver superior value to our customers,
Share holders, employees and society at large.”
Our Values
Integrity – Conduct business in an Ethical & Transparent manner.
Commitment – Towards all Stakeholders and to our Business to provide a
healthy, profitable environment.
Passion – Bring in passion in all our activities. Keep Clients and Partners the
foremost in all dealings.
Seamless-ness – Work seamlessly across functions to provide "A" Class
Service.
Speed – Deliver promises on time.
Our Philosophy
Some might say investing is a science, one that follows a fixed discipline, with well defined principles and rules. But calculations and numbers will only take you to a certain point. Beyond that, it’s the expertise that counts.
For us creating the perfect portfolio is a skill; that we have polished and mastered over the years. Picking the right investments, identifying growth opportunities and knowing when to enter and quit the market, requires immense skill and a keen sense of timing.
At Aditya Birla Money Wealth Management, we offer you an expert panel of professionals who help to mould your goals and expectations into sound investment strategies. With our guiding factors like capital protection and strategic asset allocation, we help in translating your financial dreams into reality by carefully crafting individually specific portfolios that are centered on you profile, risk appetite and of course aimed at getting the optimum out of your investment.
Deciding where to invest your hard earned money can be a daunting task for many people. But it doesn’t have to be when you’re with us. With Aditya Birla Money Wealth Management, you have a dedicated Relationship Manager who not only ensures that your financial goals are met but also exceeds your expectations at every step
Chapter No: 2 Organisation Chart & Product Profile
ORGANISATION CHART
&
PRODUCT PROFILE
BOARD OF DIRECTORS
Composition, Category, Size of the Board
The Board of Directors of the Company is a balanced Board, comprising of a
Managing Director and Non-Executive Directors which includes independent
professionals. As on March 31, 2010, there were six Directors on the Board, out of
which two are Independent, three are Non-Executive and one is a Managing
Director. The Company does not have an appointed Chairman and the same is
appointed for each such Board Meetings.
None of the Directors of the Board is a member of more than 10 Committees
or a Chairman of more than 5 Committees (as specified under clause 49) across all
Companies in which he is a Director. All Directors have made necessary
disclosures regarding their Directorship and Committee positions occupied by
them in other Companies.
ORGANIZATION CHART
ADITYA BIRLA GROUP
CEO
D.Muthukumaran
CIO
Chairman of Board
Kumar Mangalm Birla
Legal
Audit
World Class Manufacturing
Communication
Corporate Affairs & Development
Safety, Health & Environment
Human Recourse
Corporate Economics Cell
Aditya Birla Management Corporation
Santrupt Misra
Management Service Division
Aditya Birla Management Private
Vikram Rao
Central Cell
Hindalco Ind.Ltd
Idea Cellular Ltd
Grasim Industries Ltd
Strategy Business Development
ADITYA BIRLA MONEY – WEALTH MANAGEMENT
CEOSudhakar RamasubramanianDirectorG.Vijayaraghavan
DirectorSudhir Rao
DirectorManoj Kedia
DirectorPankaj Razdan
DirectorK.Sudhakar
COORavishankar Gopalan
SalesSaurab Shukla
Compliance & SecretaryS.Balaji
Human ResourcesL.S.Srinivas
Commodities & CurrenciesAmarsingh Deo
ResearchVivek Mahajan
Research & Business DevelopmentAmarsingh Deo
PRODUCT PROFILE
Products & Services
With Aditya Birla Money by your side, you will always have access to the most viable wealth management products and solutions. As your partners, we help you build a lasting legacy for yourself and your loved ones.
Financial Products
1) Equity:-The key to higher returns
The total capital worth of any company is divided into equal units of small denominations. Each denomination is called a share, and holders of these shares have voting rights within the company. The ownership interest of these shareholders is commonly referred to as equity.
Many still view equity investments as a somewhat higher risk avenue. However, if closely observed it has still been considered as one of the best sources of getting maximum returns.
Why Invest in Equity?
-Earn high returns
-Best hedge against inflation
-Creates wealth over long term
-Diversifies portfolio
You can trade in equity through a broker and through several convenient options like a branch, call and trade or even an online broking account.
2) Commodities: - Enrich your portfolio with commodities
Commodities are raw products that can be bought, sold, and traded. It can be an agricultural commodity like wheat, soybeans, rapeseed, cotton, etc or precious metals like gold, silver and so on. Commodities are traded on Multi Commodity Exchange (MCX) and National Commodity Derivative Exchange (NCDEX).
Despite the fact that the prices of commodities are unpredictable, they are much preferred by the investors who want to earn high returns from the price fluctuations. Of course there are also commodities like Gold, which is a reliable and safe investment. Hence, Commodities are increasingly becoming one of the most popular areas of investment for diversifying portfolios and improving overall rate of returns. If you are looking towards making a balanced portfolio, commodities could be your vehicle to earn desired returns.
Why Invest in Commodity?
-Earns high returns
-Diversifies portfolio
-Commodities like gold is safe for long term investment
-Improves overall investment returns
3) Derivatives
A derivative is a financial instrument - or more simply, an agreement between two people or two parties - that has a value determined by the price of something else (called the underlying). It is a financial contract with a value linked to the expected future price movements of the asset it is linked to - such as a share or a currency. There are many kinds of derivatives, with the most notable being swaps, futures, and options.
Why invest in Derivatives:
-Price discovery
-Risk Management
-Reduce Market Transaction Costs
4) IPO
An initial public offering (IPO) is the financial mechanism by which a private company offers stock to the general public for the first time and officially becomes a publicly traded company. IPOs are exciting investment opportunities, and are often exclusive events; the majority of the stock usually goes to institutions and well-connected individual investors. Historically, initial public offerings have performed extremely well in the aftermarket (when the new stock trades freely on the stock market for the first time), and therefore are much sought-after investment opportunities.
Why invest in IPO?
An IPO has the potential to make you a good return in a short period of time. It is standard practice for IPOs to be priced below “fair market value”, so the stock rises in value immediately upon issue, clearing a healthy profit for initial shareholders.
5) Trading in Currency Derivatives
The increased volatility in Foreign exchange rates had made a risk management tool in currency the need of the hour. To mitigate the currency risk and with the intention to provide a liquid and transparent market, SEBI and RBI have allowed screen based trading in currency futures for the first time in India in August 2008.
The leading domestic Currency exchanges are National Stock Exchange (NSE), MCX Stock Exchange (MCX-SX) and United Stock Exchange (USE). Volumes in Currency Exchanges have consistently increased over the past two years. The combined daily average volume has increased from Rs.16, 000 crs in Aug 2008 (in NSE) to 43,000 crs (NSE, MCXSX and USE) in October 2010, showing a 3 fold increase.
Currency futures are
-Standard contracts of a specified quantity
-To exchange one currency for another
-At a specified date in the future called settlement date
-At a price that is fixed on the purchase date.
6) Mutual Funds
A Mutual Fund is a trust that pools together the savings of a number of investors who share a common financial goal. The fund manager invests this pool of money in securities, ranging from shares, debentures to money market instruments or in a mixture of equity and debt, depending upon the objective of the scheme. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost.
a) Professional Management
Fund managers are professionals who track the market on an ongoing basis. With their mix of professional qualification and market knowledge, they are better placed than the average investor to understand the markets.
b) Diversification and Lowered Risks
Since a mutual fund is a trust that pools the savings of a number of investors sharing a common financial goal, the associated risks are greatly reduced. This is
also because a fund will invest your money in different types of instruments like shares and bonds. Hence, loss in one sphere will not greatly affect your overall investment status.
c) Low Costs
When compared to direct investments in the capital market, mutual funds cost less. This is due to savings in brokerage costs, Demat costs, depository costs, etc.
d) Liquidity
Investments in mutual funds are quite liquid and hence can be redeemed at the Net Assets Value (NAV)–related price on any working day.
e) Transparency
All that you invest in a scheme is made known to you and you are periodically informed about all the updates and changes taking place
f) Flexibility
Mutual funds offer flexibility in their options and schemes to match individual needs. Also, with features like regular withdrawal plans and systematic investment plans, you can withdraw or invest funds according to your needs and convenience.
g) Choice of Schemes
Mutual funds offer a vast variety of well-designed schemes and options that you can choose from depending on your risk appetite.
h) Tax Benefits
In India, these funds become even more attractive because of the tax advantage, indexation benefits, long term capital gains tax, tax free dividends and much more.
7) Life insurance
Why choose Life Insurance?
a) Customised life insurance solutions to suit your preferences
b) Transparency at every transaction, and you are periodically updated on the latest happening
c) Flexibility of choices with features like systematic investment and regular withdrawal plans
d) Attractive tax advantage through varied scheme options to choose
e) Varied well-designed schemes to cater to individual needs.
8) Fixed Deposits
A safe way to grow your money. A Fixed Deposit will deposit a certain amount of money with a financial institution for a fixed term at a predetermined rate. You are given the option of receiving interest income on a monthly, quarterly, biannually and annually, at interest rates higher than banks.
Why opt for Fixed Deposits?
-If your risk appetite is low, fixed deposits are perfect for you. Since most of the instruments are rated, fixed deposits have a very high safety level.
-Attractive returns at interest rates higher than banks.
-You get a stable and fixed source of income.
-Interest rates are even higher for senior citizens.
-High liquidity; most of these issuers offer 75% of the investment amount as loan @ 2% over the interest rate on the deposit, as well as a pre-mature withdrawal.
-You have the potential to earn compounding interest on your money by reinvesting the principal amount along with the interest earned.
-Flexible tenure – there are various tenures ranging from 1 to 7 years.
-You can receive interest frequently; most issuers will offer monthly, quarterly, bi annual and annual cumulative deposits.
-The operational process is extremely simple; there is no PAN requirement with fixed deposits.
-You get direct ECS credit facility for interest payments or advance interest warrants for the year issued by most companies.
-No TDS for interest payments up to Rs. 5000/- per financial year.
9) Property Service
a) Residential Services b) Commercial Services
Looking for you dream house, that ideal space where you can bring up your children and retire comfortably? Be it bungalows or apartments; our database of builders, development projects and available real estate helps you identify the perfect address for your home. Our comprehensive search can instantly access property information right from your neighborhood to anywhere across the country. We help you identify the best space available, negotiate the best price, and advise you on payment schedules, so that you always get the best property deals with Aditya Birla Money Property Services.
Why invest with us:-
-Find precise, up to date information on all properties in our portfolio.
-Unbiased advice to evaluate competing offers for best fit-to-need solution.
-Assistance in Price negotiation, site visits and transaction paperwork.
-Regular e-mails on new properties available in the city of your interest.
-24x7 accesses to property information on web.
10) Depository Participant
A Depository refers to “An organization that facilitates holding of securities in the electronic form and enables DPs to provide services to investors relating to transaction in securities”. A Depository Participant (DP) can be a financial organization like banks, brokers, financial institutions, custodians, etc., acting as an agent of the Depository to make its services available to the investors.
There are two depositories in India, namely NSDL and CDSL.
Why open a DP account?
-Safe & Convenient
-Lower Charges
-Quick Transfer
-Increased Liquidity
-Elimination of Risks
-Convenience
-Auto Credit
11) General Insurance
General Insurance gives you financial protection against any uncertain financial event. You can insure your house and belongings against fire and theft, your vehicle against theft and damage from accidents, or injury to yourself or loved ones for hospitalisation, illness, and surgery. Liabilities to others arising out of the law can also be insured (and is compulsory in some cases like motor third party insurance).
Types of General Insurance
-Motor & Travel Insurance
-Medical & Health Insurance
-Home & Personal Insurance
12) Health Plan
A Health Plan helps take care of an individual’s day-to-day preventive and pre-hospitalization medical expenses. A Health Plan member benefits by getting services of high quality doctors, dentist, pathology and radiology at significantly reduced cost. It covers virtually all doctor specializations without any exclusion criteria like age, present medical condition etc.
Why choose a Health Plan?
-Be guided as per your requirements to some of the best medical practitioners in India.
-Avail of free or subsidized medical consultations/ treatments across the network of empanelled medical practitioners.
-No restrictions based on age or present or past medical condition – suitable for all family members.
-No pre-defined spending limits or lengthy claim procedures.
Our Services:
1) Research
Our quality research provides clients with the information they need to make informed investment decisions. The Aditya Birla Money research team is dedicated to keeping you updated with access to the latest publications and a wide range of industry happenings including: market depth, breaking commentary, long-term forecasts, detailed daily updates and the latest financial news.
2) Highly proactive services
Our service includes Daily Market Update, Weekly update on mutual Funds and Event Based SMS to keep you completely informed on the markets.
3) Online Portfolio Access
Wherever you are, our network works for you. The online portfolio ensures every detail of your investments is at your fingertips. You can constantly monitor the composition of your portfolio, so you always know if your long term objectives are being met.
4) Financial planning
We offer a comprehensive financial planning session to help devise your investment strategy. This is followed by complimentary personalized report outlining specific recommendations on the step-by-step actions you need to take to achieve your financial goals.
5) Regular Portfolio Reviews
Your portfolio undergoes regular reviews to ensure your money is constantly working in your best interest, keeping your personal financial goals in sight, and towards your personal financial goal.
WEALTH
MANAGEMENT
CHAPTER NO: 3: Wealth management
Meaning:
A professional service which is the combination of financial/investment advice, accounting/tax services, and legal/estate planning for one fee. In general, wealth management is more than just investment advice, as it can encompass all parts of a person's financial life.
Definition:
A type of financial service that combines personal investments, tax planning strategies, estate planning and legal counsel. It is designed to provide a broad array of services within the confines of one office.
Concept Of Wealth Management:
A growing number of financial advisors have come to an important conclusion: Wealth management is the key to greater success. Even if you're already highly successful as a traditional CPA, you probably realize that the best way to achieve even greater success is to provide comprehensive wealth management to your clients.
Wealth management is, by definition, a holistic approach to understanding and providing solutions to all of the major financial challenges of an investor's financial life. From a client's perspective, this means having all financial challenges solved. From your perspective, it means the ability to profitably provide a wide range of products and services in a consultative way. There are three essential components to true wealth management:
1. A consultative process.
Your wealth management process must enable you to gain a detailed understanding of clients' goals and their most significant financial wants and needs. This allows you to establish close relationships with clients that help you serve them better and retain them over time.
2. Customized choices and solutions.
What you offer clients must be designed to fit the full range of each individual's needs. The select group of services you use might include investment management, insurance, estate planning and retirement planning.
3. Delivery in close consultation with your clients.
Whether or not you are a CPA by training, top wealth managers provide their services by working closely with clients on an ongoing basis. The key is that they know how to identify clients’ specific needs and how those needs change over time. And they don’t just identify needs — they proactively design solutions around those needs.
If, up until now, you have been focusing solely on investment management, you can see that you need to expand the scope of your offerings if you want to be a wealth manager. In its simplest terms, wealth management can be summed up using a single, all-encompassing formula:
Wealth management = investment consulting + advanced planning + relationship management (or)
WM = IC + AP + RM
Investment consulting is the core offering for many wealth managers and the foundation upon which they begin the client relationship.
Advanced planning addresses four key areas of financial needs that affluent investors have beyond investments: wealth enhancement, wealth transfer, wealth protection and charitable giving.
Relationship management focuses on three areas: fully understanding and meeting clients' critical needs over time; assembling and overseeing a network of financial experts to help you meet client needs; working effectively with your affluent clients' other professional advisors, such as their attorneys and accountants.
Wealth management breaks the familiar mold in which affluent individuals must contract with a range of professionals, each specializing in a single area: the investment advisor managing portfolios, the insurance agent selling life insurance, the accountant handling taxes and the attorney taking care of estate planning. As their finances have grown ever more complex, this compartmentalized approach has become less appealing to wealthy individuals wishing to streamline their affairs.
PROCEDURE OF WEALTH MANAGEMENT
Wealth management can help you determine what's really important to you, then develop actionable strategies to help you realize your most cherished hopes and defend against the things that might undo them.Investments? Of course. Borrowing? Strategically, yes. Managing risk? Systematically. Planning deliberately so that your wealth works to bring you a lifestyle well earned? That's where it starts.
Income and Lifestyle
Through an in-depth discovery process your Financial Advisor will work with you to understand and document what you want to do in this lifetime, from now until retirement and from then on. We'll then map out a course to help you seek the returns you'll need for how you intend to live and to achieve the income you'll need to do exactly what you want one year at a time. And, if you like, strategies to guarantee that income.
Borrowing
We view borrowing as a strategy — an array of ways to unlock value in assets you own, without compromising the ability of those assets to continue to work for you over time.
If such talk of strategy sounds like how most firms talk about investing, it should. We believe how people invest and how they borrow are inextricably linked — both sides of one balance sheet, one plan.
Asset Protection
By understanding the lifestyle you enjoy, and the one you're building toward, your Financial Advisor can see the threats against it — taxes, inflation, volatility, creditors, lawsuits, identity thieves, tragedy — and help you deal with them using everything in the arsenal of one of the world's largest financial services firms.
Wealth Transfer
Your Financial Advisor will approach your plan for wealth transfer from a wider angle than a traditional estate plan. We work with you to understand your definition of a rich life, then craft a plan to help you lead it and pass on what you see as most important to the next generation.
This might mean a passion for education, or a sense of obligation for each generation to help give the one that follows a leg up in life. Or both. It could mean protecting a work ethic and thirst for accomplishment, or protecting your family's bonds of affection toward one another. Whatever it is, it should start with your definition of a rich life.
Investment Management
We believe that your plan for your life is the most important part of investing. Little things...like when you plan to retire — and when you secretly hope to retire. The business you'll open when you do. How much you'd like to travel. And the aging parent who will need to move in with you in the next few years.
Investing with a Financial Advisor is based on the simple yet powerful premise of wealth management: Your investments and your life are uniquely intertwined. Whether by design or by accident, they are all part of one plan. We advise that it be by design.
Business Strategies
As you lead your business toward its next stage — whatever that stage may be — you'll be pleased to learn that your Financial Advisor understands the connection between your business and your life. They are one and the same.Our clients tell us that seeing this bigger picture makes all the difference between us and what they used to expect from a financial firm — in how we think, how we plan and in the scope of what we do. From our standpoint, it's simply a matter of treating your business like it's the biggest investment of your life, if for no other reason than that it is.
ONLINE
AND
OFFLINE TRADING
CHAPTER NO: 4: ONLINE AND OFFLINE TRADING
THEORITICAL BACKGROUND
CONCEPTUAL BACKGROUND:
Definition of share trading
Share Market is nothing but you are investing the money on which company
you trusted that there is a growth of this company in future. If you choose the right
company you will earn or else you will loss. There is also fluctuation in the market
due to the Currency value against dollar
1 year ago
Share-marketing is a type of gambling - respected gambling. It is
better that you do not know about it. It will be better if you do not try
to know about it. Earn clean money, by hard work. Do not go for
lotteries, share-markting, etc. They will give you more tension than
money.
OFF-LINE TRADING
Doing share trading with the help of broker or through phone is called Offline trading. In other words trading will be done by another person on your behalf based on the instructions given by you, and then the other person can be a broker.
The broker will do buying and selling of shares on your behalf depending on the instructions given by you. If you want to do offline share trading then you need to open the Demat account.
1. In off-line transfer of share buyer’s intervention is required.
2. The seller is required to issue a signed delivery instruction slip to his
depository.
3. It requires lot of paperwork.
4. The rolling settlement in off-line is T+5.
ONLINE-TRADING
Doing share trading with help of computer, Internet
connection and with trading/Demat account is called Online Share Trading. If you
would like to do online share trading then you should have a computer, Internet
connection and online trading account.
1. In online transfer of share buyer’s intervention is not required.
2. Sighing of delivery instruction slips to his depository is not required.
3. Instant and fast transfer of share.
4. The rolling settlement is on-line is T+2.
5. Paperless transactions – your share certificates get deposited in
Electronic form (DMAT) in your web trade account.
6. Orders can be also placed offline during non-market hours.
7. For NRIs this is the easiest option to invest in Indian markets.
8. Record of all transactions is available at your fingertips.
CONCEPT
1) DEMAT
It is nothing but an electronic form of share.
2) DEMATERIALISATIONS: -
Physical form converted into electronic form.
3) STOCK BROKER: -
Stockbrokers are the intermediaries who are allowed to trade in securities
on the exchange of which they are members, they buy and sell on behalf of their
clients.
4) MUTUAL FUNDS: -
Mutual funds are financial intermediaries who collect the saving of small
investors and invest them in a diversified portfolio of securities to minimize risk
and maximize returns for their participation.
5) PRIVATE PLACEMENT: -
Many companies choose to raise capital for their operation by taking
through various intermediaries by taking what in marketing terms would be known
as wholesale route. The retail route of approaching the public is expensive as well
as time consuming. This is called in financial Market as private placement.
6) INTERNET BROKERING: -
With the Internet becoming ubiquitous institution have set up securities
trading agencies that provide online trading facilities to their clients from their
homes.
7) SPEED-e-: -
In order to extend the benefits of technological progress to investors
NSDL has launched SPEED-e services, SPEED-e is internal based facility for all
depository participant that enables the account to submit instruction to their
depositories through SPEED-e website on internet.
8) IDEAS:-
NSDL offers a secured based service for a clearing member of stock
exchange and to account holders. This service called Ideas enable clearing member
and beneficial account holder to view details of their accounts directly on the
Internet.
Share Market Trading includes buying and selling of company shares
either through Stock Exchange or Over-the-Counter (OTC). It is also called the
equity trading. Shares are a certificate, which represents ownership rights of the
holder in the company.
Share Market is the market for securities where organized issuance and
trading of shares takes place either through exchanges or over-the-counter in
electronic or physical form. It plays an important role in channelizing capital from
the investors to the business houses, which consequently leads to the availability of
funds for business expansion.
Basically, Share Market can be divided into two parts:
1. Primary Market: -
It is the market where new issues of securities are offered to the investors.
2. Secondary Market: -
An investor of a secondary market buys a security from another participant
of the same and not from any issuing corporation (as in case of Primary Market).
Shares in the Share Market are either traded through:
(a) Stock Exchange: -
These are organized market places where stocks, bonds are other equivalents
are traded between the buyers and sellers where exchange acts as a counter-party to
both the participants in case of any default. The contracts are standardized and not
customized ones. For example, NYSE, NASDAQ, NSE, NIKKEI, etc.
(b) Over-the -Counter (OTC): -
These are not centralized exchanges. Here, the trade takes place through a
network of dealers. Generally, the OTC contracts are bilateral customized contracts
and not standardized ones.
The shares traded are Common Stocks.
(C) Common Stocks: -
Gives an ownership right to the holders of the stock and hence the
shareholders are entitled to the earnings of the company according to their stake.
Holders also get dividends on those stocks as and when given by the company.
Liquidity of common stocks are very high and can be bought and sold at any time
of the market hours.
Important Participants of Share Market Trading are:
1) Buyer: -
An investor who buys a script in the belief that the market will rise. If his
hinge becomes right then he makes profit otherwise he suffers loss.
2) Seller: -
Seller of a stock sells in the hope that the stock price will go down.
3) Stock Broker: -
Brokers are persons or firms who execute buy/sell order on behalf of the
investors and charge a commission for rendering the service.
Share Trading are done in three ways:-
(a) Offline Share Trading:-
In this form of trading the customer either goes to the share broker's place
and sits before the share trading terminal and asks the dealer to place orders in his
account. Or rings the share broker, ask the share quotes and other relevant
information’s, and accordingly places orders over the phone.
(b) Online Share Trading: -
The client could avail the share market and could place his order on his own
from any place he wants, provided he has a computer with an Internet connection.
(C) Open Outcry Trading: -
Here, the investors put their orders through the brokers and these share
brokers in turn place and execute orders on behalf of them on the floor of the
exchange. These brokers gather in a particular place on the trading floor known as
Trading Post. There is a person called as the Specialist present in the trading post
who does the matching of the buy and sell orders. This type of auction method is
called Open Outcry Method.
Important terms in share market and in share trading:-
Open –The first price at which the stock opens when market opens in the
morning.
High - The stock price reached at the highest level in a day.
Low - The stock price reached the lowest level in a day.
Close - The stock price at which it remains after the end of market timings
or the final price of the stock when the market closes for a day.
Volume - Volume is nothing but quantity.
Bid - The Buying price is called as Bid price.
Offer - The selling price is called offer price.
Bid Quantity - The total number of shares available for buying is called
Bid Quantity.
Offers Quantity - The total number of shares available for selling is
called Offer Quantity.
Buying and selling of shares - Buying is also called as demand or bid
and selling is also called as supply or offer. First selling and then buying
(this only happens in day trading)
is called as shorting of shares or short sell.
Share Trading - Buying and selling of shares is called share trading.
Transaction - One complete cycle of buying and selling of shares is
called One Transaction.
Squaring off - This term is used to complete one transaction. Means if
you buy then have to sell (means square off) and if you sell then you have to
buy (means square off).
Limit Order - In limit order the buying or selling price has to be
mentioned and when the share price comes to that price then you will
execute your order with the mentioned price.
Market Order - When you put buy or sell price at market rate then the
price get executes at the current rate of market. The market order gets
immediately executed at the current available price.
Stop Loss Orders - Stop loss orders ("stops") are limits set by traders at
which they will automatically enter or exit trades - an order to buy or sell is
placed in the market if price reaches a specified limit. A stop loss order is set
to limit a trader's potential loss. The stop loss is placed below the current
price (to protect a long position) or above the current price (to protect a short
position).
MARKETING & FINANCE
RESEARCH REPORT
CHAPTER NO: 5
Research Report: “ONLINE AND OFFLINE TRADING”
INTRODUCTION
One reason why many people are never seriously interested in share trading
apart from the risk is that although they are curious, they know it is a hassle to go
some place to trade and handle all those paper certificates. Also, many don't have
the time for all this.
Online trading eliminates both these hassles. First by making your
transaction virtually paperless and second by enabling you to buy and sell shares
anytime anywhere where there is Internet access. In fact you can even place a sell
or buy order by specifying your order value during non-market hours. Which
broker can you talk to place a buy order in the middle of the night? With online
trading, this is easily possible.
It can be your home, office or Internet café; you are ready to go to your
account to buy or sell shares or to just watch how your portfolio is performing.
There is absolutely no paper involved whatsoever except for the initial application
you sign and give for the purpose of taking a web trade account.
Only thing you would need to do is send your money to the bank account so
that you have the money in the account to be able to buy your favorite stocks. Your
share trading system will be linked to your bank account and once you have the
money in the account it can be made immediately available for purchase of shares
IMPORTANCE OF THE TOPIC
The security and exchange board of India has permitted such trading
on January-31-2000. After that many players have offered these services to the
investors. Is trading through Internet safe? What if someone steal my investments
or, does anyone else have access to my accounts? If these are the questions that
stop you from online share trading then the solutions are here. Which decade you
are living in? Internet trading today is one of the largest mediums of investments
and nothing can compete with it. Its security and reliability can be proved by, the
increasing number of users every month. More than 5,000 people are registered
every month for online Investments. Apart from being totally secured, easy access
and speedy moves makes it more popular among day traders and other stock
investors.
OBJECTIVE OF THE STUDY
PRIMARY OBJECTIVE:
To study the existing online & offline share trading scenario with respect to
Aditya Birla Money.
SECONDAY OBJECTIVE:
To study the importance of IT in investment.
To know the Awareness about the product of Aditya Birla money’s Product
in the Existing Market.
To know the Frequency of Trading.
Data Collection Methodology:
In order to collect necessary data the following methodology was adopted.
1. PRIMARY DATA:
The data are collected through SURVEY METHOD (FACE-FACE INTERVIEW)
2. SECONDARY DATA:
Study on online and offline share trading.
DATA COLLECTION METHODOLOGY
In order to collect necessary data the following methodology was adopted.
1. PRIMARY DATA
A primary data is the data collected afresh. It is collected for the first time from
the original source. Primary data is the data that the researcher is collecting
themselves using methods such as,
By observation and discussions.
By questionnaire
By interview
2. SECONDARY DATA
A secondary data is that data that is required to conduct the study and can be
obtained from books, journals, magazines, records etc. Secondary data is data
taken by the researcher from secondary sources, internal or external. Secondary
data is collected from following sources: -
Magazines and journals
Company websites.
Internet
Books
SCOPE OF THE STUDY
The scope of the study is limited only Chennai region only.
LIMITATIONS OF THE STUDY
Many constraints were involved in doing this study. Some of them are as follows.
The most significant limitation has been the individuals involved in
this study were very busy and did not spare much time in discussion.
The sample size selected for the survey was too small as compared to
large population.
The project was carried out only in the Chennai, so findings on data
gathered can be best true for Chennai only and not applicable to other
parts of state and country.
Indian stock market is a market where sentiments play a major role in
price; hence 100% accurate predictions cannot be made about its
future path.
RESEARCH DESIGN
Exploratory Design:
The research was generally used to clarify thoughts and opinions about the
research problem. I carried-out depth interview and approached clients asked
questions about share trading, which helped to explore the research and enjoyed
while doing the project in the organization.
Descriptive Design:
The research was carried-out in detailed by framing the questionnaire. To
know the response of the respondents about the Share Trading, it was carried-out
pretest and it was re-framed several times.
These questionnaires were administered to a sample size of 50 respondents
which includes both male and female. Information obtained from the respondents
was analyzed and interpreted with the help of SPSS Software. Simple tabulations,
cross tabs, hypothesis testing were utilized wherever necessary. A conclusion was
drawn for each objective.
RESEARCH METHODOLOGY
We are using survey method to collect primary data.
Sample: we have chosen 50 people as our respondents for our
survey that represents the population of Chennai.
Sample unit: Chennai.
Research objectives are clearly stated before designing the
questionnaire.
Information was collected from the sample size of 50 respondents,
which included both males and females.
Information obtained from the respondents was analyzed and
interpreted with the help of the SPSS Software.
Simple tabulations were calculated for each question and cross tabs
were provided as and where necessary.
Findings revealed by the tabulations were listed in a summarized form
as recommended Actions.
DATA ANALYSIS AND INTERPRETATION
Findings of the survey:
Table No: 1
A Table showing distribution of respondent as per average monthly investment
Frequencies
Average Monthly Investment
Investment Frequency Percentage
Less than 10000 25 50%
10000-50000 15 30%
50000-100000 5 10%
More than 100000 5 10%
50%
30%
10%
10%
Average Monthly Investment Frequency
Less than 1000010000-5000050000-100000More than 100000
Analysis:
The above table shows that 50% respondents have investment less than
Rs.10000 and 30% respondents have their portfolio size between 10000 to
50000.Also 10% respondents have their portfolio size in between 50000-100000 or
more than 100000.
Interpretation:
It means that people prefer to invest in fixed return investment rather than in
share .So from that it could be predicted that through there are many fluctuation in
the share market but still people prefer to invest in it for the short gain purpose, so
it is a positive signal for the online trading.
Table No: 2
A Table showing distribution level of respondent as per their Awareness
level about the different corporate brokers providing the facilities of online share
trading
Frequencies
Stock Broker You Prefer More
Company Frequency Percentage
Share Khan 6 12%
Religare 4 8%
Icici 6 12%
Kotak Mahindra 9 18%
Reliance Money 8 16%
Aditya Birla Money 17 34%
12%
8%
12%
18%16%
34%
Stock Broker You Prefer More Frequency
Share KhanReligareIcici Kotak MahindraReliance MoneyAditya Birla Money
Analysis:
From the graph it shows that people who are with the online trading highly
awareness with Aditya Birla Money and it is about 34% ,then next come the Kotak
Mahindra 18%, Reliance Money about 16% and then comes with ICICI direct
12%, Share khan 12%, and Religare about 8% .
Interpretation:
It clearly shows that Aditya Birla Money is market leader and Kotak
Mahindra is a follower and next to it is Reliance Money, ICICI, Share Khan and
then Religare.
Table No: 3
A Table showing distribution level of respondent as per their frequency of
doing trade
Trade Your Share
Factors Trade Shares
Online Offline
Daily 5
Weekly 7
Monthly 8
Sometime 15 15
Daily Weekly Monthly Sometime 0
2
4
6
8
10
12
14
16
5
78
15 15
Trade Your Share Trade Shares Online Trade Your Share Trade Shares Offline
Analysis:
The above chart shows the percentage of Online and Offline Trading of 50
respondents. 5 people do daily online trading, 7 people do weekly online trading, 8
people do monthly online trading, and 15 people do sometime both online and
offline trading.
Interpretation:
It clearly shows that professional people prefer more online for trading than
offline, and other people prefer rare both online and offline for trading.
Table No: 4
A Table showing distribution level of respondent rating online trading
option.
Frequencies
Rate Trading Online
Factors Frequency percentage
Strongly Agree 6 12%
Agree 26 52%
uncertain 7 14%
Disagree 6 12%
Strongly Disagree 5 10%
12%
52%
14%
12%
10%
Rate Trading Online Frequency
Strongly AgreeAgree uncertainDisagree Strongly Disagree
Analysis:
The above chart shows the rating of Online Trading by the respondent. 12%
Strongly Agree, 52% Agree, 14%, Uncertain, 12% Disagree, 10% Strongly
Disagree.
Interpretation:
It clearly tells that people Agree to do Online Trading.
Table No: 5
A Table showing distribution level of respondent rating offline trading
option.
Frequencies
Rate Trading Offline
Factors Frequency percentage
Strongly Agree 5 10%
Agree 6 12%
uncertain 10 20%
Disagree 23 46%
Strongly Disagree 6 12%
10%
12%
20%
46%
12%
Rate Trading Offline Frequency
Strongly AgreeAgree uncertainDisagree Strongly Disagree
Analysis:
The above chart shows the rating of Offline Trading by the respondent. 10%
Strongly Agree, 12% Agree, 20%, Uncertain, 46% Disagree, 12% Strongly
Disagree.
Interpretation:
It clearly tells that people Disagree to do Offline Trading.
Table No: 6
A Table showing distribution level of respondent as per their factors
influences Online Trade
Frequencies
Factor Influencing Online Trading
Factors Frequency Percentage
Time Saving 10 28%
Brokerage 1 3%
Price Floating 7 20%
Flexibility 8 23%
Accessibility 9 26%
29%
3%
20%
23%
26%
Factor Influencing Online Trading Frequency
Time SavingBrokeragePrice FlucationFlexibleAccessibility
Analysis:
This pie chart shows that the influencing factors to trade online out of 35
respondent 28% Time Saving, 3% Brokerage, 20% Price Fluctuating, 23%
Flexible, 26% Accessibility for which respondents prefer more Online Trading
service.
Interpretation:
Analysis of pie chart tells us clearly that respondent prefers more Online
Trading because it is Time Saving.
Table No: 7
A Table showing distribution level of respondent as per their factors
influences Offline Trade
Frequencies
Factor Influencing Offline Trading
Factors Frequency Percentage
Time Saving 2 13%
Brokerage 8 54%
Price Floating 2 13%
Flexibility 1 7%
Accessibility 2 13%
13%
53%
13%
7%
13%
Factor Influencing Offline Trading Frequency
Time SavingBrokeragePrice FlucationFlexibleAccessibility
Analysis:
This pie chart shows that the influencing factors to trade offline out of 15
respondent 13% Time Saving, 54% Brokerage, 13% Price Fluctuating, 7%
Flexible, 13% Accessibility for which respondents prefer more Offline Trading
service.
Interpretation:
Analysis of pie chart tells us clearly that respondent prefers more Online
Trading because of Brokerage.
Table No: 8
A Table showing distribution level of respondent as per the technology
while doing investment.
Frequencies
Technology is Helping
Respondent Frequency percentage
Yes 35 70%
No 15 30%
70%
30%
Technology is Helping Frequency
YesNo
Analysis:
This pie chart shows that 74% respondent says ‘Yes’ and 26% respondent
says ‘No’ and the technology helps for which respondents prefer more Online
Trading service.
Interpretation:
Analysis of pie chart tells us clearly that respondent prefers more
Technology while doing investment.
Table No: 9
A Table showing distribution level of respondent as per the stock market.
Frequencies
Stock Market
Factors Frequency percentage
Very Risky 10 20%
Somewhat Risky 15 30%
Moderate 10 20%
Somewhat Safe 9 18%
Very Safe 6 12%
20%
30%
20%
18%
12%
Stock Market Frequency
Very RiskySomewhat RiskyModerateSomewhat SafeVery Safe
Analysis:
This pie chart shows the respondent believes towards Stock Market. Out of
50 Respondents- 20% say very risky, 30% say somewhat risky, 20% say moderate,
18% say somewhat safe and 12% say very safe.
Interpretation:
It clearly shows that respondent think investing in Stock Market is
somewhat risky.
Findings
1. The research study found that people prefer to invest in fixed return
investment rather than in share .So from that it could be predicted that
through there are many fluctuation in the share market but still people prefer
to invest in it for the long term gain purpose, so it is a positive signal for the
online trading.
2. The study found that Aditya Birla Money have 34 % market share so it is
market leader and Kotak Mahindra have 18% market share so it is a follower
and next to it is Reliance Money 16%, ICICI & Share Khan 12% and then
Religare 8%.
3. The study found that 35 respondents do trading online and 15 respondents
do trading offline but professional people prefer more online for trading than
offline, and other people prefer rare both online and offline for trading.
4. The study found that rating of Online and Offline Trading by the respondent.
It clearly tells that 52% people agree to do Online Trading and 46%
Disagree to do offline Trading.
5. The study found that 28% respondents prefer Online Trading because it is
Time Saving and 54% respondents prefer Offline Trading because of
Brokerage.
6. The study found that 70% respondent prefers more Technology while doing
investment.
7. The study found that 30% respondent think investing in Stock Market is
somewhat risky.
Suggestions
1. The company has to make aggressive marketing so that everyone is
aware of the online share trading.
2. Thus awareness gives the opportunity for the acceptance of the online
share trading.
3. On the other hand it shows that there is less awareness about the
derivatives segment so it is advice to the online broker to give the
facilities to the trader.
CONCLUSION
CHAPTER NO: 7: CONCLUSION
Conclusion
The concept of Online Trading is a unique concept with providing quality
service to people with affordable price. It launched its Branches in different areas
of Chennai. As the competition is common in all sectors, the Aditya Birla Money
is also having tough competitors like Kotak Mahindra, ICICI, Reliance Money,
Share Khan, and Religare and other than these it faces competition from
unorganized Trader, but the Aditya Birla Money with its best service quality policy
and principle it maintaining its brand image in market.
Keeping all the above in mind it planning to create awareness. As per
the survey of 50 samples size of the respondent shows all positive signals for the
online trading. The respondents are much aware about the Trading and Stock
Market, so they are willing to purchase the products in it. Finally from Aditya Birla
Money the respondents are looking for good quality services, reasonable price and
personnel cabin for online share trading. By looking into all above factors there is
potential market for Aditya Birla Money in Chennai.
QUESTIONAIRE
Name: -
Age: -
Occupation: -
1. Are you trading in stock and commodity?
a) Yes b) No
(If ‘YES’ continue with next question and if ‘NO’ go to last question)
2. What is your average monthly investment?
a) <10000 b) 10000-50000 c) 50000-100000 d) More than 100000
3. Which stock broker you prefer more
a) Share khan
b) Religare
c) ICICI
d) Kotak Mahindra
e) Reliance Money
f) Aditya Birla Money
4. How frequently do you trade?
a) Daily b) Weekly c) Monthly d) sometime
5. What way do you trade your share?
a) Online b) Offline
6. Rate trading option?
a) Online
Strongly Agree Agree Uncertain Disagree Strongly Disagree
b) Offline
Strongly Agree Agree Uncertain Disagree Strongly Disagree
7. Which factors influences you to trade
Online / Offline
a) Time saving
b) Brokerage
c) Price fluctuating
d) Flexible
e) Accessibility
8. Do you think technology is helping while doing investmenta) Yes b) No
9. What do you think about the stock market?
Very Safe: Some What Safe: Moderate Some What Risky Very Risky
10. What is your opinion about stock market / commodity market?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________
BIBILOGRAPHY
A) Magazine: -
1) Business today
B) Websites:-
1) www.adityabirlamoney.com.
