``

Competitors

KARVY STOCK BROKING LTD.,COMPETITORS ARE ICICI DIRECT.COM,

INDIABULLS, SHARKHAN, ANAND RATHI, AND 5PAISE.COM, INSIGHT
SHARE BROKING, RELLIGARE, ANGEL BROKING AND MANY MORE.

32

``

ANGEL BROKING

Comparative analysis of various stock broking companies on

the basis of activation charges, brokerage, services

Different Players in Share Industry

In the share market there are many DPs amongst which Karvys wealth creator is one of
them? There are many competitors in the market which are giving direct competition to
the company, but because of the research based services and wealth management services
Offered by Karvy (Services Truly Personalized), it is unique in the market.
In the competitors list there are big names such as:
Angel broking, India bulls, Share khan, HDFC, Kotak Street, 5 paisa, ICICI DIRECT etc.
Brief introduction of Karvy stock broking ltd competitors:

33

``

Share khan Depository Services offers dematerialization services to individual and

corporate investors.
Share khan, one of India's leading brokerage houses, is the retail arm of SSKI. With over
240 share shops in 110 cities, and India's premier online trading portal
www.sharekhan.com, our customers enjoy multi-channel access to the stock markets.

ANGEL BROKING

Angel Broking, Ltd. provides retail personal financial services in India. The company
offers e-broking, portfolio management, mutual fund, private client group, commodities
broking, investment advisory, wealth management, IPO, and depository services. The
company was founded in 1987 and is based in Mumbai, India.

34

``

Background of HDFC
HDFC was incorporated in 1977 with the primary objective of meeting a social need
that of promoting home ownership by providing long-term finance to households for their
housing needs. HDFC was promoted with an initial share capital of Rs. 100 million.
About HDFC Sec.
HDFC sec is a brand brought to you by HDFC Securities Ltd, which has been promoted
by the HDFC Bank & HDFC with the objective of providing the diverse customer base of
the HDFC Group and other investors a capability to transact in the Stock Exchanges &
other financial market transactions

Kotak Securities Ltd., a strategic joint venture between Kotak Mahindra Bank and
Goldman Sachs (holding 25% - one of the world's leading investment banks and
brokerage firms) is India's leading stock broking house with a market share of around
8%. Kotak Securities Ltd. has been the largest in IPO distribution.
Kotak Securities has 122 branches servicing more than 1,70,000 customers and a
coverage of 187 cities. Kotaksecurities.com, the online division of Kotak Securities
Limited offers Internet Broking services and also online IPO and Mutual Fund
Investments.

35

``
India Info line was founded by a group of professionals in 1995, a seemingly distant past
in the Internet age. Our meticulous research was published and distributed in printed form
to a client base comprising the who's who of Indian business including leading MNCs,
investment banks and consulting firms.
In early 1999, when Internet penetration in India was at its infancy and the future
unknown, we took the hard decision of killing our earlier business model and embracing
the Internet. We discontinued delivery of reports in printed form and made available
quality research at the click of a mouse. Thus, was born www.indiainfoline.com.
We forayed into investment transaction space in early 2000 to complete the value chain.
www.5paisa.com was launched for online trading in mid-2000.
India Info line Securities Pvt Ltd is a 100% subsidiary of India Info line Ltd, which is
engaged in the businesses of Equities broking and Portfolio Management Services. It
holds memberships of both the leading stock exchanges of India viz. the Stock Exchange,
Mumbai (BSE) and the National Stock Exchange (NSE). It offers broking services in the
Cash and Derivatives segments of the NSE as well as the Cash segment of the BSE.

India bulls Financial Services Ltd. is a public company and listed on the National Stock
Exchange, Bombay Stock Exchange, Luxembourg Stock Exchange and London Stock
Exchange. The company ranks at 82nd position in the list of most valuable companies in
India has a market capitalization of approx US $ 800 million. The consolidated net worth
of the company is approx US $ 400 million.
India bulls, along with its subsidiary companies, offer consumer loans, brokerage and
depository services, personal loans, home loans and other financial products and services
to the retail markets.
India bulls Resources Ltd, a 100 per cent subsidiary of India bulls Financial Services
Ltd., has been established with the objective of evolving as an independent oil company
over time. The immediate short-term goal is to partner with oil companies who are
willing to come to India and bid in the current NELP-6 round.
Through its group companies, India bulls are also engaged in real estate development.
The company is in the process of developing modern commercial complexes in the heart
of Mumbai. India bulls Estates Pvt Ltd. the real estate arm of India bulls Financial
Services will set up an integrated township spread across 100 acres in Sonepat, 15 km
from Delhi.

36

``

ICICI WEB TRADE LIMITED is a company that is venture of ICICI Bank, ICICI
Limited to produce an integrated offering of e-broking services. This service is the
combination of these entire three organizations. Promotions are looked after ICICI web
Trade that has made e-invest facility, commonly known as ICICI Direct.com possible.
This company is 100% subsidiary of ICICI Limited. The company enables to have the
facility of having all the facilities online. One can view his banking transactions online,
view the Demat balance with the latest market values and at the same time buy and sell
shares online. This company has pioneered the concept of e-broking in India. The
company went online with NSE on 15th April 2000.

Ranbaxy Promoter Group is India's leading business house having diversified interests in
Pharmaceuticals, Healthcare, Pathological Labs and Financial Services through Ranbaxy
Laboratories Limited, Fortis Healthcare Limited, SRL Ranbaxy Limited and Religare
Enterprise Limited respectively. Religare is driven by ethical and dynamic process for wealth
creation. Based on this, the company started its endeavor in the financial market.
Religare Enterprises Limited (A Ranbaxy Promoter Group Company) through Religare
Enterprises Limited, Religare Finvest Limited, Religare Commodities Limited and Religare
Insurance Broking Limited provides integrated financial solutions to its corporate, retail and
wealth management clients. Today, we provide various financial services which include
Investment Banking, Corporate Finance, Portfolio Management Services, Equity & Commodity
Broking, Insurance and Mutual Funds. Plus, theres a lot more to come your way.
Religare is proud of being a truly professional financial service provider managed by a
highly skilled team, who have proven track record in their respective domains. Religare
operations are managed by more than 3000 highly skilled professionals who subscribe to
Religare philosophy and are spread across its country wide branches.
Today, we have a growing network of more than 300 branches and more than 580
business partners spread across more than 300 cities/towns in India and a fully operational
international office at London.

37

``

Activation ,brokerage and other charges of different stock

broking companies

CRITERIA

Karvy stock broking ltd

Demat a/c opening charges

Normal A/C- 300

ABS A/c
- Free
ABS Plan-4p, 40p
UTS plan- 1p, 1p

Brokerage intra day, delivery

AMC(Annual Maintenance Charges)
Trading funding intra day, delivery

Normal A/c- 250

ABS A/C -No AMC
10 Times, 2 Times

Interest rate
Debit period

T+2 DAYS

Mode of trading

Both online and offline

38

``
Margin money

Depends upon Client

Software installation charges

No extra charges

ANGEL BROKING

CRITERIA

ANGEL STOCK BROKING

Demat a/c opening charges

660

Brokerage intra day, delivery

AMC(Annual Maintenance Charges)

Classic plan: 3p ,20p

Freedom plan; 1p,10p
Rs.225

Trading funding intra day, delivery

6times,4 times(minimum stock Rs 50000)

Interest rate

18 %pa

Debit period

T+2 DAYS

39

``
Mode of trading

Both online and offline

Margin money

5000,5000,10000

Software installation charges

No extra charges

CRITERIA

RELIGARE SECURITIES LTD

Demat a/c opening charges

299,499,999

Brokerage intra day, delivery

AMC (Annual Maintenance Charges)

Classic plan: 5p ,50p

Freedom plan; 3p,30p
No amc

Trading funding intra day, delivery

6times,4 times(minimum stock rs 500000)

Interest rate

18 %pa

Debit period

T+2 DAYS

Mode of trading

Both online and offline

Margin money

5000,5000,10000
40

``
Software installation charges

No extra charges

CRITERIA

ICICI DIRECT

Demat a/c opening charges

RS 750/-

Brokerage intra day, delivery

50P,75P

AMC(Annual Maintenance Charges)

RS 500/-

Trading funding intra day, delivery

3-4 times of the available funds.

Interest rate

18% p.a.

Debit period

T+2 DAYS

Mode of trading

Both Online & Offline

Margin money

41

``
Software installation charges

CRITERIA

Kotak securities .com

Demat a/c opening charges

RS 550

Brokerage intra day, delivery

2.5P,25P

AMC(Annual Maintenance Charges)

RS 30pm

Trading funding intra day, delivery

7times,4 times

Interest rate

21%

Debit period

T+2

Mode of trading

Offline

Margin money

Rs8000/-

42

``
Software installation charges

CRITERIA

HDFC securities

Demat a/c opening charges

Rs 799/-

Brokerage intra day, delivery

15p,50p

AMC(Annual Maintenance Charges)

Nil

Trading funding intra day, delivery

10times,4 times

Interest rate

Debit period

T+ 2days

43

``
Mode of trading

Both

Margin money

5000,10000

Software installation charges

ANAND RATHI

CRITERIA

Anand Rathi

Demat a/c opening charges

Rs 633/

Brokerage intra day, delivery

3p(1p),30p(10p)

AMC(Annual Maintenance Charges)

Trading funding intra day, delivery

6 times,4 times

Interest rate

18%p.a.

Debit period

T+2

Mode of trading

Both

Margin money

5000

Software installation charges

1000

44

``

ALLIANZ SECURITIES

CRITERIA

ALLIANZ SECURITIES

Demat a/c opening charges

Rs 500/-

Brokerage intra day, delivery

3-2P,30-20P

AMC(Annual Maintenance Charges)

NIL

Trading funding intra day, delivery

10 times,4 times

Interest rate

Debit period

T+2

Mode of trading

OFFLINE

Margin money

NIL

Software installation charges

bulls, Angel Broking, Share khan, and other respectively. Thus as a major player in the
Hyderabad, Karvy have the huge competition..

Data Analysis
45

``

And
Interpretation
Table 1:- Showing the occupation of
respondent.
Occupation
Professional
Business
Service
Agriculture
Retired
Others
Total

No. Of
respondents
8
10
19
2
6
5
50

Percentage
16
20
38
4
12
10
100

Professional
Buisiness
Service
Agriculture
Retired
others

Interpretation
46

``

Majority of the respondents are service oriented

amounting to so to38% so that the mutual fund companies
should try to concentrate more on this segment and try to
attract the other categories such as professional, business,
agriculture, retired, and others as they are accounting for
just 20% and 16%

Table 2 showing income level of

respondent.
Income
5000-10000
10000-15000
15000-20000
20000-25000
Total

No. Of
respondents
21
13
11
5
50

Percentage
42
26
22
10
100

50000-10000
10000-15000
15000-20000
20000-25000

47

``

Interpretation
The affordability to invest depends on the income of
people. As income depicts the status of the people to invest
in different avenues based on their income many investors
fall in the income level between 5000-10000 the register for
42% the income level 10000-15000 are 26% the income
level between 15000-20000 the high income level above
20000 accounting for 10%.

Table 3 showing the investors investing

different avenues.
Avenues
Bank deposits
Mutual funds
Shares
Debentures
Bank fixed
Deposits
Chit funds
Total

No. Of
respondents
17
6
10
2
8
7
50

48

Percentage
34
12
20
4
16
14
100

``

bank deposit
mutual fund
shares
debentures
bank fixed deposit
chit funds

Interpretation:The above table depict that 34% of

respondents prefer to invest in bank deposit due to safety
20% shares 16% in bank fixed deposit, 14% in chit funds,
12% in mutual funds and 4% in debentures.

Table 4 showing the regular investors .

Pattern
Yes
No
total

No. Of
respondents
26
24
50

49

Percentage
52
48
100

``

yes
no

Interpretation:The above table that around 52% of the

respondents invest regularly and 48% invest occasionally.

Table 5 showing the regular investors .

Invest Pattern
Short - term
Long term
Total

No. Of
respondents
19
31
50

50

Percentage
38
62
100

``

Sales

short term
long term

Interpretation:The above table shows that around 62% the

respondents prefer for long-term investment and 38% for
short-term investment.

Table 6 showing source of information.

Source if
No. Of
information
respondents
Expert/profession
9
al
Own experience
37
Existing investors
4
51

Percentage
18
74
8

``

Total

50

100

experts/professional
own experience
existing investores

Interpretation:Source of information plays a key role in

investing in a particular avenue the above table shows that
shows that 74% of the respondents have invested by their
own experience, 18% of the respondents invested by the
experts/professional and 8% of the respondents invested by
the guidance given by existing investors.

Table 7 showing the factors influencing

investment.
Factors
Convenience
Safety

No. Of
respondents
12
19
52

Percentage
24
38

``

Income
Rate of
interest/preference
Tax benefits
Total

12
4

24
8

3
50

6
100

convenience
safety
income
rate of
interest/preference
tax benfits

Interpretation:The above table shows that most of the investors

about 38% invest for the purpose of safety followed by 24%
convenience and income and rest for rate of
interest/preference and tax benefits that 8% and 6%
respectively.

Table 8 showing the investment in mutual

funds.
Investment in
mutual funds

No. Of
respondents
53

Percentage

``

Yes
No
total

6
44
50

12
88
100

Sales

yes

no

Interpretation:The above table depict that 88% of the

respondents are not satisfied with the returns on mutual
fund and only 12% of the respondents are satisfied with
return on mutual funds.

Table 9 showing overall performance of

mutual funds.
Attributes

No. Of
54

Percentage

``

Very good
Good
Average
Total

respondents
2
20
28
50

4
40
56
100

very good
good
average

Interpretation:The above table depicts that the performance

of the mutual funds is average to 56% of the respondents,
good to 40% of the respondents and very good to only 4% of
the respondents.

55

``

Occupation
Professional
Business
Service
Agriculture
Retired
Others
Total

No. Of
respondents
8
10
19
2
6
5
50

Percentage
16
20
38
4
12
10
100

Professional
Buisiness
Service
Agriculture
Retired
others

Interpretation
Majority of the respondents are service oriented
amounting to so to38% so that the mutual fund companies
should try to concentrate more on this segment and try to
attract the other categories such as professional, business,
agriculture, retired, and others as they are accounting for
just 20% and 16%

56

``

Table 2 showing income level of

respondent.
Income
5000-10000
10000-15000
15000-20000
20000-25000
Total

No. Of
respondents
21
13
11
5
50

Percentage
42
26
22
10
100

50000-10000
10000-15000
15000-20000
20000-25000

Interpretation
The affordability to invest depends on the income of
people. As income depicts the status of the people to invest
in different avenues based on their income many investors
fall in the income level between 5000-10000 the register for
42% the income level 10000-15000 are 26% the income
level between 15000-20000 the high income level above
20000 accounting for 10%.
57

``

Table 3 showing the investors investing

different avenues.
Avenues
Bank deposits
Mutual funds
Shares
Debentures
Bank fixed
Deposits
Chit funds
Total

No. Of
respondents
17
6
10
2
8

Percentage
34
12
20
4
16

7
50

14
100

bank deposit
mutual fund
shares
debentures
bank fixed deposit
chit funds

Interpretation:The above table depict that 34% of

respondents prefer to invest in bank deposit due to safety
58

``

20% shares 16% in bank fixed deposit, 14% in chit funds,

12% in mutual funds and 4% in debentures.

Table 4 showing the regular investors .

Pattern
Yes
No
total

No. Of
respondents
26
24
50

Percentage
52
48
100

yes
no

Interpretation:The above table that around 52% of the

respondents invest regularly and 48% invest occasionally.
59

``

Table 5 showing the regular investors .

Invest Pattern
Short - term
Long term
Total

No. Of
respondents
19
31
50

Percentage
38
62
100

Sales

short term
long term

Interpretation:The above table shows that around 62% the

respondents prefer for long-term investment and 38% for
short-term investment.
60

``

Table 6 showing source of information.

Source if
No. Of
information
respondents
Expert/profession
9
al
Own experience
37
Existing investors
4
Total
50

Percentage
18
74
8
100

experts/professional
own experience
existing investores

Interpretation:Source of information plays a key role in

investing in a particular avenue the above table shows that
61

``

shows that 74% of the respondents have invested by their

own experience, 18% of the respondents invested by the
experts/professional and 8% of the respondents invested by
the guidance given by existing investors.

Table 7 showing the factors influencing

investment.
Factors
Convenience
Safety
Income
Rate of
interest/preference
Tax benefits
Total

No. Of
respondents
12
19
12
4

Percentage

3
50

24
38
24
8
6
100

convenience
safety
income
rate of
interest/preference
tax benfits

Interpretation:The above table shows that most of the investors

about 38% invest for the purpose of safety followed by 24%
convenience and income and rest for rate of
62

``

interest/preference and tax benefits that 8% and 6%

respectively.

Table 8 showing the investment in mutual

funds.
Investment in
mutual funds
Yes
No
total

No. Of
respondents
6
44
50

Percentage
12
88
100

Sales

yes

no

Interpretation:-

63

``

The above table depict that 88% of the

respondents are not satisfied with the returns on mutual
fund and only 12% of the respondents are satisfied with
return on mutual funds.

Table 9 showing overall performance of

mutual funds.
Attributes
Very good
Good
Average
Total

No. Of
respondents
2
20
28
50

Percentage
4
40
56
100

very good
good
average

Interpretation:64

``

The above table depicts that the performance

of the mutual funds is average to 56% of the respondents,
good to 40% of the respondents and very good to only 4% of
the respondents.

65