Summer Training Project Report

on
MUTUAL FUNDS
AT
SHAREKHAN LIMITED
Submitted in Partial Fulfillment of the Requirement for the Award of
the Degree of

Master of Business Administration

By
PAWAN KUMAR
MBA FINANCE
15104034
Under the Supervision of

Mr. DINESH KUMAR

BRANCH MANAGER

Haryana School of Business

Guru Jambheshwar University
Hisar

PREFACE

For a management student training plays an important role during his/her study.
Training provides a corporate or real world platform to learn practically. MBA degree
without any training or corporate world experience is just like life without oxygen. So
industrial training provides a great learning experience about management concepts and

its applications.
This training provides us an opportunity to know the current market. To
know the current market situations, prevailing competitions, behavioural environment of
different people etc. It provides us a platform whereby we can apply our theoretical
knowledge and we can solve many practical problems. And hence it can help us to be a
successful manager in future.
Thanks to all those who directly or indirectly help me to complete this
project within a short time limit. For preparation of this report I would like to thanks to
faculty members of our college and staff members of SHARE KHAN LTD.

ACKNOWLEDGEMENT
There is a fact that none of the human being in this world is 100% perfect and in
order to gain some perfectness in itself an individual surely needs a helping hand. The
same was with me with respect to the project that I was undergoing during this session of
2 months. As I too was illiterate with this research topic that I selected for my research at
the initial stages, I got acquainted with it slowly and steadily through efforts and surely
from various intelligent and helpful personalities. I would like to extend my heartily
thanks to all of them through this acknowledgement.
I am also thankful SHAREKHAN Ltd., HISAR for giving me an opportunity for
getting in valuable experience in such reputed organization.
I am also thankful Sharekhan Limited for providing me actual training and the
required knowledge & guidance in completing this training successfully.
Finally, I would like to record my special thanks to my parents, friends, and
colleagues help me directly or indirectly in preparation of project work.

INDEX

CHAPTE
R
NUMBER
1
2
3
4
5
6
7
8
9

CHAPTER NAME

INTRODUCTION OF COMPANY
ABOUT MUTUAL FUNDS
COMPETITIVE ANALYSIS
RESEARCH METHODOLOGY
DATA ANALYSIS
FINDINGS
SUGGESATIONS
CONCLUSION
BIBLIOGRAPHY
INDEX

OVERVIEW OF THE INDUSTRY

ABOUT EQUITY MARKET
EQUITY SHARES

Shares represent ownership rights of their holders. Shareholders are owners of the
company. Shares can of two types:
Equity Shares
Preference Shares
Equity Shares are also known as ordinary shares.
Do not have fixed rate of dividend.
There is no legal obligation to pay dividends to equity shareholders.
Priority wise equity shareholders get second priority in paying the dividend.

Equity shareholders have a right to vote in the annual general meetings (AGM)
and extra ordinary general meeting (EGM).
A company may issue right shares or bonus shares to the existing shareholders of
the company.
Equity shareholders are never redeemed unless the company as a going concern.

STOCK MARKETS IN INDIA

Stock exchanges are the perfect type of market for securities whether of government
And semi-govt bodies or other public bodies as also for shares and debentures issued
By the joint-stock companies. In the stock market, purchases and sales of shares are
Affected in conditions of free competition. Government securities are traded outside the
Trading ring in the form of over the counter sales or purchase. The bargains that are
Struck in the trading ring by the members of the stock exchanges are at the fairest
Prices determined by the basic laws of supply and demand.

Definition of a stock exchange:

Stock exchange means anybody or individuals whether incorporated or not,
Constituted for the purpose of assisting, regulating or controlling the business of buying,
Selling or dealing in securities. The securities include:
Shares of public company.
Government securities.
Bonds

History of Stock Exchanges:

The only stock exchanges operating in the 19th century were those of Mumbai setup
In 1875 and Ahmadabad set up in 1894. These were organized as voluntary nonprofitMarking associations of brokers to regulate and protect their interests. Before
The control on securities under the constitution in 1950, it was a state subject and the
Bombay securities contracts (control) act of 1925 used to regulate trading in
Securities. Under this act, the Mumbai stock exchange was recognized in 1927 and
Ahmadabad in 1937. During the war boom, a number of stock exchanges were
Organized. Soon after it became a central subject, central legislation was proposed
And a committee headed by A.D.Gorwala went into the bill for securities regulation.
On the basis of the committees recommendations and public discussion, the
Securities contract (regulation) act became law in 1956.

Functions of Stock Exchanges:

Stock exchanges provide liquidity to the listed companies. By giving quotations to

The listed companies, they help trading and raise funds from the market. Over the
Hundred and twenty years during which the stock exchanges have existed in this
Country and through their medium, the central and state government have raised
Corers of rupees by floating public loans. Municipal corporations, trust and local
Bodies have obtained from the public their financial requirements, and industry, trade
And commerce- the backbone of the countrys economy-have secured capital of
Crores or rupees through the issue of stocks, shares and debentures for financing
Their day-to-day activities, organizing new ventures and completing projects of
Expansion, diversification and modernization. By obtaining the listing and trading
Facilities, public investment is increased and companies were able to raise more
Funds. The quoted companies with wide public interest have enjoyed some benefits
And assets valuation has become easier for tax and other purposes.

ONLINE TRADING INDUSTRY INDIA

With an online trading account, you can buy and sell shares in an instant! Anytime you
like and from anywhere you like. You can choose the online trading account that suits
your trading habits and preference.
In online trading the orders are sent to the exchanges, the confirmation is immediately
conveyed through E-mail and the proceeds or shares are credited (or debited) to the bank
and demat accounts. Globally, trade every seconds trade that goes through in the stock
market is an online trade. We in India have a long way to go but we sure are catching up a
good speed.
Companies offer a fast online share dealing service using real time quotes, free up
to the minute advice, information and tips. Trades may be both in NSE & BSE. Some
online companies offer investment in mutual funds and IPOs online.

The Indian issues:

Some other structural aspects need to be kept in mind while analyzing the e-broking
scenario in India. The breadth of participation in the stock market in India is significantly
lower as compared to western markets with only 12.1 million equity owning households
and three million depository accounts. Brokerage rates in India are significantly lower

than US rates, with Indian brokers charging commissions of 0.5% to 1.25% per trade. For
any player, the pricing strategy for e-broking for the retail segment is as follows: For the
cash segment, the brokerage charged varies from 0.4% to 0.85% based on the volume of
trade done per quarter while for the margin segment; the brokerage charged varies from
0.05% to 0.15% based on the volume of trade done per quarter. The above charges are
inclusive
of
depository
charges
and
all
the
other
statutory
.
National Stock Exchange of India (NSE),
Bombay Stock Exchange of India (BSE)
Indian Commodity Exchange (ICEX)
United Stock Exchange of India (USE)
Multi Commodity Exchange (MCX)
Over the Counter Exchange of India (OTCEI)
Inter-connected Stock Exchange of India (ISE)
Madras Stock Exchange (MSE)
Coimbatore Stock Exchange (CSX)
Ahmedabad Stock Exchange (ASE)
Bhubaneshwar Stock Exchange (BhSE)
Cochin Stock Exchange (CSE)
Hyderabad Stock Exchange (HSE)
Calcutta Stock Exchange (CSE)
Delhi Stock Exchange (DSE)
Bangalore Stock Exchange (BgSE)
Madhya Pradesh Stock Exchange, Indore
Jaipur Stock Exchange (JSE)
Magadha Stock Exchange, Patna
UP Stock Exchange (UPSE)
Vadodara Stock Exchange,Vadodara (VSE)
Guwahati Stock Exchange Ltd

Ludhiana Stock Exchange Association Ltd

Kanara Stock Exchange Ltd
Mangalore Stock Exchange Ltd
Pune Stock Exchange Ltd
Saurashtra Kutch Stock Exchange Ltd
Meerut Stock Exchange Ltd

INTRODUCTION TO NATIONAL STOCK EXCHANGE (N.S.E)

The National Stock Exchange (NSE) (is a stock exchange located at Mumbai, India. It
is the 16th largest stock exchange in the world by market capitalization and largest in
India by daily turnover and number of trades, for both equities and derivative trading.
NSE has a market capitalization of around US$985 billion and over 1,646 listings as of
December 2011. Though a number of other exchanges exist, NSE and the Bombay Stock
Exchange are the two most significant stock exchanges in India, and between them are
responsible for the vast majority of share transactions. The NSE's key index is the S&P
CNX Nifty, known as the NSE NIFTY (National Stock Exchange Fifty), an index of fifty
major stocks weighted by market capitalisation.
NSE is mutually owned by a set of leading financial institutions, banks, insurance
companies and other financial intermediaries in India but its ownership and management
operate as separate entities. There are at least 2 foreign investors NYSE Euronext and
Goldman Sachs who have taken a stake in the NSE. As of 2006, the NSE VSAT
terminals, 2799 in total, cover more than 1500 cities across India. NSE is the third largest
Stock Exchange in the world in terms of the number of trades in equities. It is the second
fastest growing stock exchange in the world with a recorded growth of 16.6%.
The National Stock Exchange (NSE) is India's leading stock exchange covering various
cities and towns across the country. NSE was set up by leading institutions to provide a
modern, fully automated screen-based trading system with national reach. The Exchange
has brought about unparalleled transparency, speed & efficiency, safety and market

integrity. It has set up facilities that serve as a model for the securities industry in terms of
systems,
practices&procedures.
NSE has played a catalytic role in reforming the Indian securities market in terms of
microstructure, market practices and trading volumes. The market today uses state-of-art
information technology to provide an efficient and transparent trading, clearing and
settlement mechanism, and has witnessed several innovations in products & services viz.
demutualisation of stock exchange governance, screen based trading, compression of
settlement cycles, dematerialisation and electronic transfer of securities, securities
lending and borrowing, professionalization of trading members, fine-tuned risk
management systems, emergence of clearing corporations to assume counterparty risks,
market of debt and derivative instruments and intensive use of information technology.

Origins
The National Stock Exchange of India was set up by Government of India on the
recommendation of Pherwani Committee in 1991.Promoted by leading Financial
institutions essentially led by IDBI at the behest of the Government of India, it was
incorporated in November 1992 as a tax-paying company. In April 1993, it was
recognized as a stock exchange under the 1Securities Contracts (Regulation) Act, 1956.
NSE commenced operations in the Wholesale Debt Market (WDM) segment in June
1994. The Capital market (Equities) segment of the NSE commenced operations in
November 1994, while operations in the Derivatives segment commenced in June 2000.
Purpose
Committed to improve the financial well-being of people.

Vision
To continue to be a leader, establish global presence, facilitate the financial well being of
people.

Values
NSE is committed to the following core values:

Integrity

Customer focused culture

Trust, respect and care for the individual

Passion for excellence

Teamwork

Markets
Currently, NSE has the following major segments of the capital market:

Equity

Futures and options

Retail debt market

Wholesale debt market

Currency futures

Mutual fund

Stocks lending and borrowing

In August 2008 currency derivatives were introduced in India with the launch of
Currency Futures in USD INR by NSE. Currently it has also launched currency futures in
euros, pounds and yen. Interest Rate Futures were introduced for the first time in India by
NSE on 31 August 2009, exactly one year after the launch of Currency Futures.
NSE became the first stock exchange to get approval for interest rate futures, As
recommended by SEBI-RBI committee, on 31 August 2009, a futures contract based on
7% 10 Year Government of India (Notional) was launched with quarterly maturities.

Hours
NSE's normal trading sessions. 9:15 AM TO 3:15(3:30) pm

INTRODUCTION TO BOMBAY STOCK EXCHANGE (B.S.E)

The Bombay Stock Exchange (BSE) (Bombay hare Bzar) (formerly, The Stock
Exchange, Bombay) is a stock exchange located on Dalal Street, Mumbai and is the
oldest stock exchange in Asia. The equity market capitalization of the companies listed
on the BSE was US$1 trillion as of December 2011, making it the 6th largest stock
exchange in Asia and the 14th largest in the world The BSE has the largest number of
listed companies in the world.
As of March 2012, there are over 5,133 listed Indian companies and over 8,196 scrips on
the stock exchange, the Bombay Stock Exchange has a significant trading volume. The
BSE SENSEX, also called "BSE 30", is a widely used market index in India and Asia.
Though many other exchanges exist, BSE and the National Stock Exchange of India
account for the majority of the equity trading in India. While both have similar total
market capitalization (about USD 1.6 trillion), share volume in NSE is typically two
times that of BSE
BSE Limited is the oldest stock exchange in Asia What is now popularly known as the
BSE was established as "The Native Share & Stock Brokers' Association" in 1875.
Over the past 135 years, BSE has facilitated the growth of the Indian corporate sector by
providing
it
with
an
efficient
capital
raising
platform.
Today, BSE is the world's number 1 exchange in the world in terms of the number of
listed companies handled through its electronic trading system. And it is in the top ten of
global exchanges in terms of the market capitalization of its listed companies (as of
December 31, 2009). The companies listed on BSE command a total market
capitalization
of
USD
Trillion
1.28
as
of
Feb,
2010.
BSE is the first exchange in India and the second in the world to obtain an ISO
9001:2000 certifications. It is also the first Exchange in the country and second in the
world to receive Information Security Management System Standard BS 7799-2-2002

certification for its BSE On-Line trading System (BOLT). Presently, we are ISO
27001:2005 certified, which is a ISO version of BS 7799 for Information Security.

The BSE Index, SENSEX, is India's first and most popular Stock Market benchmark
index. Exchange traded funds (ETF) on SENSEX, are listed on BSE and in Hong Kong.
Futures and options on the index are also traded at BSE. (over 4900). It is the world's 5th
most active in terms of number of transactions

Hours of operation
Session
Beginning of the Day Session
Pre-open trading session
Trading Session
Position Transfer Session
Closing Session
Option Exercise Session

Timing
8:30 - 9:00
9:00 - 9:15
9:15 - 15:30
15:30 - 15:50
15:50 - 16:05
16:05 -

The hours of operation for the BSE quoted above are stated in terms the local time (GMT
+ 5:30). BSE's normal trading sessions are on all days of the week except Saturday,
Sundays and holidays declared by the Exchange in advance.

SEBI (Securities and Exchange Board of India)

In 1998, the SEBI was established by the Government of India through an executive
resolution, and was subsequently upgraded as a fully autonomous body (a statutory

board) in the year 1992 with the passing of the SEBI act on 30th Jan 1992. In place of
Government control statutory and autonomous regulatory boards with defined
responsibilities, to cover both development and regulation of the market, and independent
powers have been set up. Paradoxically this is a positive outcome of the securities scam
of 1990-91.
The basic objectives of the board were identified as:
To promote the interests of investors in securities.

To promote the development of securities market.

To regulate the securities market and

For matters connected there with or incidental there .

Since its inception SEBI has been working targeting the securities and is attending to the
fulfillment of its objectives with commendable zeal and dexterity. The improvements in
the securities markets like capitalizations requirements, margining, establishments of
clearing corporation etc. reduced the risk of credit and also reduced the market.
SEBI has introduced the comprehensive regulatory measures prescribed norms, the
eligibility criteria, the code of obligations and the code of conduct for different
intermediaries like, bankers to issue, merchant bankers, brokers and sub-brokers,
registrars, portfolio managers, credit rating agencies, underwriters and others. It has
framed by-laws, risk identification and risk management systems for clearing houses of
stock exchanges, surveillance system etc. which has made dealing in securities both safe
And transparent to the end investors.
Another significant event is the approval of trading in stock indices (like S&P CNX
Nifty and Sensex) in 2000. A market index is a convenient and effective product because
of the following reasons:
It acts as a barometer for market behavior.

It is used to benchmark portfolio performance.

It is used in derivative instrument like index futures and index options.

It can be used for passive fund management as in case if index funds.

Two board approaches of SEBI is to integrate the securities market at the national
level, and also to diversify the trading products, so that there is an increase in number of
traders including banks, financial institutions, insurance companies, mutual funds,
primary dealers etc. to transact through the exchanges. In this context the introduction of

derivatives trading through Indian stock exchanges permitted by SEBI in 2000 AD is a

real landmark.
SEBI appointed the L.C. Gupta Committee in 1998 to recommend the regulatory
frameworks for derivatives trading and suggest by-laws for regulation and control of
trading and settlement of derivatives contracts. The board of SEBI in its meeting held on
May 11, 1198 accepted the recommendations of the committee and approved the phased
introduction of derivatives trading in India beginning with stock index futures. The board
also approved the Suggestive by-laws as recommended by the Dr. L.C. Gupta
Committee for regulation and control of trading and settlement of derivatives contracts.
SEBI then appointed the J. R. Verma Committee to recommend Risk Containment
Measures (RCM) in the Indian stock index futures market. The report was submitted in
November 1998.
However the Securities Contracts (Regulation) act, 1956 (SCRA) required amendment to
include derivatives in the definitions of securities to enable SEBI to introduce trading
in derivatives. The necessary amendment was then carried out by the Government in
1999. The Securities law (Amendment) bill, 1999 was introduced. In December 1999 the
new framework was approved.
Derivatives have been accorded the status of Securities. The ban imposed on trading in
derivatives in 1969 under a notification issued by the central government was revoked.
Thereafter SEBI formulated the necessary regulations and intimated the stock exchanges
in the year 2000. The derivatives trading started in India at NSE in 2000 and BSE started
trading in the year 2001.

INTRODUCTION OF COMPANY
Incorporated in February 2000, Sharekhan is India's 3rd largest stock broker (after
ICICI Direct and HDFC Securities). Sharekhan provides brokerage services through its
online trading website Sharekhan.com and 1800 offices which includes branches &
franchises in over 550 cities across India. Sharekhan has seen incredible growth over last
10+ years though it's very successful online trading platform and the chain of franchises
located in almost every part of India. Sharekhan also has international presence in the

UAE and Oman.

Sharekhan offers its services to all kinds of customers including individual investors and
traders, corporate, institutional and NRI's. As of Dec 2014, Sharekhan has over 13 lakh
customers. Sharekhan offers trade execution facilities for equity cash and derivatives
segments on BSE and NSE, commodities trading facilities on MCX and NCDEX.
Sharekhan also offer depository services (demat account) and option to invest in mutual
funds and IPOs.
Sharekhan.com is the finest investment portal for India stock market. The well
designed website provides wide range on investment options, share market news,
research reports, stock quotes, fundamental and statistical info across equity, mutual
funds, IPOs and much more.
Sharekhan also offers 'Sharekhan TradeTiger', one of the most popular trading
terminals, for retail investors. The Trade Tiger is quite similar to Broker Terminal and
allows frequent traders to place and execute their orders at a high speed. It also provides
live data and other tools on the same screen to help the users with their trades.
Sharekhan's 'ShareMobile' platform offers trading facility though mobile application.
Mobile apps are available for popular iPhone, iPad, Blackberry, Android and other
phones.
Services offered by Sharekhan include trading in equity, F&O and Commodity and
investment in IPO's, Mutual Funds, Insurance, Bonds and NCD's. Company also
provide Sharekhan Demat Account and registered as a depository participant with NSD
and CDS.
Sharekhan offers verity of accounts to suite customer requirement. These accounts
include Sharekhan First Step Account Sharekhan Classic Account, Sharekhan Trade
Tiger Account and Portfolio Management Services (PMS) though Sharekhan Platinum
Circle Account.
Sharekhan has its own research teams which regularly publishes investment advice, stock
tips, quarterly company result analysis and news alerts to its customer though email, SMS
and on Sharekhan.com. Sharekhan has an excellent knowledge center on its website to
help stock and commodity market investors of all kind. It also offers free online and
classroom seminars / workshops to investors. Each Sharekhan Accounts comes with
online and in-person help from Sharekhan representative.

THE COMPANY

Name of the company: Sharekhan ltd.

Year of Establishment: 1925

Headquarter: Sharekhan SSKI

A-206 Phoenix House
Phoenix Mills Compound
Lower Parel Mumbai - Maharashtra, INDIA- 400013

Nature of Business: Service Provider

Services: Depository Services, Online Services and Technical Research.

Number of Employees: Over 3500

Website: www.sharekhan.com

Slogan: Your Guide to The Financial Jungle.

Vision
To be the best retail brokering Brand in the retail business of stock market.

Mission

To educate and empower the individual investor to make better investment decisions
through quality advice and superior service.
Sharekhan is infact Among the top 3 branded retail service providers
No. 1 player in online business
Largest network of branded broking outlets in the country serving more than 7,00,000
clients.
Sharekhan's management team is one of the strongest in the sector and has positioned
Sharekhan to take advantage of the growing consumer demand for financial services
products in India through investments in research, pan-Indian branch network and an
outstanding technology platform. Further, Sharekhan's lineage and relationship with
SSKI Group provide it a unique position to understand and leverage the growth of the
financial services sector.

SSKI Corporate Finance Private Limited (SSKI) is a leading India-based investment bank
with strong research-driven focus. Their team members are widely respected for their
commitment to transactions and their specialized knowledge in their areas of strength.

SHAREKHAN LIMITEDS MANAGEMENT TEAM

DIRECTORS:
Sharekhan Limited INSIDERS ON Board Members
Name (Connections)

Relationships

Title

Tarun Shah

9 Relationships

Chief Executive Officer and Whole-Time Director

Jaideep Arora

9 Relationships

Whole-Time Director

Shankar Vailaya

9 Relationships

Whole-Time Director

Other Board Members On Board Members

Name (Connections)

Relationships

Type of Board Members

Primary Company

Jimmy Mahtani

22Relationships

Member of the Board of Directors

Sharekhan Limited

Marc Desaedeleer

21Relationships

Member of the Board of Directors

Citi Venture Capital International

Rahul Yadav

9Relationships

Member of the Board of Directors

Sharekhan Limited

Anil Nagu

10Relationships

Member of the Board of Directors

Citi Venture Capital International

Sumeet Narang

9Relationships

Member of the Board of Directors

Sharekhan Limited

Vikram Limaye

57Relationships

Member of the Board of Directors

IDFC Limited

Thiruvidaimarudhur Sivashankar

9Relationships

Alternate Director

Sharekhan Limited

Demat account:
Sharekhan is a depository participant. This means that we can keep the shares in
dematerialized form in Sharekhan. But for this one has to the demat account in
Sharekhan. Dematerialization is the process by which a client can get physical certificates
converted into electronic balances maintained in his account with the DP.

In Sharekhan, under demat account there are two types of terminals.

TYPE
OF
DEMAT DEPOSIT (Refundable)
ACCOUNT TERMINAL

CHARGES (non-refundable)

Account Types
1. Classic account
Allow investor to buy and sell stocks online along with the following features like
multiple watch lists, Integrated Banking, demat and digital contracts, Real-time portfolio
tracking with price alerts and Instant credit & transfer.

Online trading account for investing in Equities and Derivatives

Free trading through Phone (Dial-n-Trade)

Two dedicated numbers for placing your orders with your cellphone or landline.

Automtic funds tranfer with phone banking (for Citibank and HDFC bank
customers)

Simple and Secure Interactive Voice Response based system for authentication

get the trusted, professional advice of our telebrokers

After hours order placement facility between 8.00 am and 9.30 am

Integration of: Online trading + Bank + Demat account

Instant cash transfer facility against purchase & sale of shares

IPO investments

Instant order and trade confirmations by e-mail

Single screen interface for cash and derivatives

2. TradeTiger account
This is a net based executable application for active traders who trade frequently during

the day's trading session. Following are few popular features of Trade Tiger account.

A single platform for multiple exchange BSE & NSE (Cash & F&O), MCX,
NCDEX

Multiple Market Watch available on Single Screen

Hot keys similar to a traditional broker terminal

Tie-up with 12 banks for online transfer of funds

Different tools available to gauge market such as Tick Query, Ticker, Market
Summary, Action Watch, Option Premium Calculator, Span Calculator

Graph Studies are available including Average, Band- Bollinger, Know

SureThing, MACD, RSI, etc

Special offer for our website visitors

Free Trading & Demat Account (for limited time only)
Sharekhan offers FREE Trading + Demat Account (Rs 1150 waived). You can also
avail of attractive trading plans that suit your needs by just paying the AMC charges that
are fully adjustable against brokerage. Thereby saving up to 70% on brokerage.
This is a limited time offer. Simply leave your contact information with us and Sharekhan
representatives will contact you.
Sharekhan Brokerage Charges 2016
Account Opening Fees & Annual maintenance charges (AMC)

Trading Account Opening Charges (One Time): Rs 750 (Classic Account), Rs

1000 (Trade Tiger Account)- charges fully adjusted against first 6 months
brokerage.

Trading Annual maintenance charges (AMC): Nil

Demat Account Opening Charges (One Time): Included in trading account

opening charges

Demat Account Annual Maintenance Charges (AMC): Rs 400 (Free for 1st year

with trading account.)

Sharekhan Trading Brokerages Charges:

Intra-day Trades: 0.1% on the buy side and 0.1% on the sell side.

Delivery Based Trades: 0.5% or 10 paise per share or Rs 16/- per scrip
whichever is higher.

F&O Trades: 0.1% on the first leg and 0.02% on the second leg if squared off on
the same day and 0.1% if squared off on any other day.

Options Trades: Rs 100/- per contract or 2.5% on the premium (whichever is

higher).

Currency Future: 0.1%.

Currency Options: Rs 30/- per lot or 2.5% on premium (whichever is higher).

Commodity: 0.1%.

Sharekhan Minimum Brokerage Fee:

For Intra-day Trades: Sharekhan charges minimum brokerage of 5 paise per

share. This means that while doing intraday trading if the share price you trade in
is Rs 50/- or less, a minimum brokerage of 5 paise per share will be charged.

For Delivery Based Trades: Sharekhan charges minimum brokerage fee of 10

paise per share. This means; for delivery based trades minmum brokerage of 10
paise per share is charged when the share price is Rs 20/- or less.

Minimum DP charges: DP charges of Rs 16/- per scrip is charged when the total
traded value is Rs 3200/- or less in case of sell transaction.

Useful links about Sharekhan:

1. Sharekhan Website: http://www.ShareKhan.com

2.
Product
Demo
Speed
Trade:
http://www.sharekhan.com/Demos/speedtrade/index.html
3. Product Demo - Classic: http://www.sharekhan.com/Demos/classic/index.html
4. Email: info@sharekhan.com

5. FAQs: http://sharekhan.com/KnowledgeCentre/Sharekhan_FAQ.aspx
6. Phone: 022-66621111
7. Toll Free: 1-800-22-7500

TRADING SESSION:-

Trading timings are from 9:55 A.M. to 3:30 P.M. on all 5 days of the trading period.
Monday to Friday is the trading period in all the stock exchanges. SEBI has
Stipulated that all the stock exchanges in India must have same trading period.

COMPETITIVE ANALYSIS

THE MAJOR PLAYERS IN ONLINE TRADING

1) SHAREKHAN.COM
2) 5PAISA.COM
3) KOTAKSTREET.COM
4) INDIABULLS.COM
5) ICICIDIRECT.COM
6) HDFCSEC.COM

HDFC SECURITIES:

Company Background:
HDFC Securities Ltd is promoted by the HDFC Bank, HDFC and Chase Capital
Partners and their associates. Pioneers in setting up Dial-a-share service with the
Largest team of Tele-brokers.

Online Account Type:

HDFC Online Trading A/c: Plain Vanilla Account with focus on 3 in 1

Advantage.

Pricing of HDFC Account

Account Opening: Rs 750
Demat: NIL, 1st year charges included in Account Opening
Initial Margin : Rs 5000/- for non HDFC Bank Customers (AQB)

Brokerage:
Trading 0.15%* each side + ST
Delivery 0.50%** each side + ST
Rs 25 Min Brokerage per transaction
Rs 8 Min Brokerage per transaction

ICICI DIRECT:

Account Opening: Rs 750

Schemes: For short periods Rs 750 is refundable against brokerage generated
In a quarter these schemes are introduced 3-4 times a year.
Demat: NIL, 1st year charges included in Account Opening Plus a facility to open
Additional 4 DPs without 1st yr AMC. Only Rs 100 as linking charges per DP

Initial Margin : Nil

Brokerage: ICICIs brokerage rates are inclusive of Stamp duty (0.002%) for

Trading and 0.010% for delivery while service tax (10.2%) on BROKERAGE land
Turnover tax is EXTRA.

Delivery Vol per QTR Brokerage Square Vol P.M. Brokerage

< 10 lakhs
10 25 lakhs
25 50 lakhs
50 lakhs - 1 Cr
1 Cr 2 Cr
2 Cr 5 Cr
5 Cr

INDIABULLS:

0.75%
0.70%
0.55%
0.45%
0.35%
0.30%
0.25%

< 50 lakhs
50 lakhs 2 Cr
2Cr-5Cr
5Cr- 10 Cr
10Cr -20 Cr
> 20 Cr
--------

.10% Both Sides

.08% Both Sides
.05% Both Sides
.04% Both Sides
.035% Both Sides
.03% Both Sides
----------

Company Background:
India Bulls is a retail financial services company present in 70 locations covering 62
Cities. It offers a full range of financial services and products ranging from Equities
To Insurance. 450 + Relationship Managers who act as personal financial advisors.
Online Account Type:
Signature Account: Plain Vanilla Account with focus on Equity Analysis. The
Equity analysis is a paid service even for A/c holders.
Power India bulls: Account with sophisticated trading tools, low commissions
And priority access to R.M.
Pricing and type of Accounts:
Signature Account Power India Bulls
Account Opening: Rs 250 * Account Opening: Rs 750

Demat: Rs 200 if POA is signed, ,

No AMC for this DP No AMC for this DP
Initial Margin: NIL
Brokerage: Negotiable

Power India Bulls

Account Opening: Rs 750

Demat: Rs 200 if POA is signed,
No AMC for this DP
Initial Margin: NIL
Brokerage: Negotiable

Kotak Securities:

Company Background:
Kotakstreet is the retail arm of Kotak Securities. Kotak Securities limited is a joint
Venture between Kotak Mahindra Bank and Goldman Sachs.
Online Account Type
Twin Advantage / Green Channel : 2 DPs, Limit against shares
Free Way: Flat Rs 999 Cover Charge p.m, 0.03% per transaction
High Trader : 6 Times Exposure Cash & Derivatives, Auto sq off 2:55
Cash Expressway : Spot payment, additional 0.5% charges
For Kotak Fast Lane / Keat Lite / Keat Desktop are trading interfaces.
Keat Desktop with advanced tools comes at a charge of Rs 500 p.m,
Non-Refundable.

PRICING OF KOTAK
Account Opening : Rs 500
Demat: Rs 22.5 p.m
Initial Margin : Rs 5000(Compulsory)
Min Margin Retainable : Rs 1000
Brokerage Slab wise: Higher the volume, lower the brokerage.
Even older customers (on 0.25% & 0.40%) have been moved to the slab wise
Structure w.e.f 1/4/2004

Slab structure of Kotak

 Delivery Vol p/m Brokerage * Square Vol P.M. Brokerage

< 1 lakhs
0.65%
< 10 lakhs 0.10% Both Sides
1 lakhs 5 lakhs
0.60%
10 lakhs 25 lakhs 0.08% Both Sides
5 lakhs 10 lakhs 0.50%
25 lakhs - 2 Cr 0.05% Both Sides
10 lakhs - 20 lakhs 0.40%
2 Cr - 5 Cr 0.04% Both Sides
20 lakhs 60 lakhs 0.30% > 5 Cr 0.035% Both Sides
60 lakhs - 2 Cr
0.25% ---do--- 0.03% Both Sides
> 2 0.20% ---- -------* Brokerage is inclusive of All Taxes * Brokerage is inclusive of All Taxes
* Min Brokerage of Rs 0.05 per share * Min Brokerage of Rs 0.01 per share
Derivatives
Vol off p/m
Brokerage
< 2 Cr
0.07% Both Sides
2 Cr - 5.5 Cr
0.05% Both Sides
5PAISA
Company Background
Indiainfoline was founded in 1995 and was positioned as a research firm
In 2000 e-broking was started under the brand name of 5paisa.com.
Apart from offering online trading in stock market the company offers
Mutual funds online.
It also acts as a distributor of various financial services i.e. Company Fixed
Deposits, Insurance.
Limited ground network, present in 20 cities

Online Account Types

Investor Terminal : Investors / Students

Trader Terminal : Day Traders / HNIs

PRICING FOR RETAIL CLIENTS

Investor Terminal
Account Opening : Rs 500
Demat 1st Yr : Rs 250
Initial Margin : Rs 2500 (Compulsory)
Min Margin Retainable : Rs 1000

Brokerage:

Trading 0.10% each side + ST

Delivery 0.50% each side + ST

PRICING FOR HNI CLIENTS

Trader Terminal
Account Opening : Rs 500
Demat 1st Yr : Rs 250
Initial Margin : Rs 5000(Compulsory)
Min Margin Retainable : Rs 1000

Brokerage:
Trading 0.10% each side + ST
Delivery 0.50% each side + ST
(Negotiable to 0.05% each side & 0.25%)

SHAREKHAN

Company Background
Sharekhan is the retail broking arm of SSKI Securities Pvt Ltd. SSKI owns 56%
In Sharekhan, balance ownership is HSBC, First Caryle, and Intel Pacific
Into broking since 80 years
Focused on providing equity solutions to every segment
Largest ground network of 210 Branded Share shops in 90 cities

Online Account Types

Classis Account: Investor in equities

Speed Trade: Trader in equities & derivatives

PRICING FOR HNI CLIENT

Speed Trade
Account Opening : Rs 1000 ( Refundable against brokerage in Month + 1)
Demat 1st Yr : Rs 0 in Account Opening
Initial Margin : Nil
Min Margin Retainable : NIL

Brokerage:
Trading 0.10% each side + All Taxes
Delivery 0.50% each side + All Taxes
(Negotiable based on volume)

Account Access Charges

Monthly Rs 500, adjustable qtrly against brokerage of Rs 9000/- for qtr.
No access charges for gold customers (Above 1 lac brokerage p.a)

Pricing for Retail Customers

Classic:
Account Opening : Rs 750
Demat 1st Yr : NIL
Initial Margin : NIL

Min Margin Retainable : NIL

Brokerage:
Trading 0.10% each side + All Taxes
Delivery 0.50% each side + All Taxes

Sharekhan online Trading Interfaces

The customer can choose the online trading interface that meets his requirement
Based on his trading habits and preferences
DIAL-N-TRADE Toll Free
The DNT is a value added services meant for all customers who
Want to transact but are not online.
DNT TOLL FREE FERTURES
Dedicated Toll Free number for Order placements
Automatic fund transfer with phone banking*
Simple and secure IVR based system for authentication
No wait time, on entry of Phone Id & TPIN, the call is transferred
Trusted, professional advice of Tel-brokers who offer undiluted Sharekhan
Research Inputs
After-hours order placement facility
Transfer of money using phone banking is available with Citibank only
Between 9 a.m to 9.55 am and 3.30p.m to 6 p.m

CLASSIC/WEBSITE FEATURES

Facility to integrate choice of 4 Banks/DP/Trading Account

Instant credit for shares sold from DP
Automatic pick-up of shares from linked DP for pay in
Automatic deposit of shares into linked DP after pay-out
4 Times leverage on Margin Trades
Margin Trading available for entire marker session
Slab wise brokerage structure for delivery and margin trades, shortly
Free calls for order placement on Toll-Free
Trusted, Professional advice of Tele-brokers
Facility to enter After Market Orders online & via Phone

CLASSIC/WEBSITE FEATURES

Daily Research newsletter (Investor Eye) Via e-mail

Access to new IPO without any paperwork
Advanced portfolio monitoring Tools
Integrated DP account with trading account

Option of linking additional 4 DP accounts to trading account

Choice of linking 4 banks to trading a/c for online payments
Cash and Derivatives trading in a single account
E-mail confirmations for all transactions
Choice of electronic/Physical contracts

SPEEDTRADE EXECUTION FEATURES

Real time streaming quotes using 2 Marker Watches
Trade Execution in 2-3 seconds
Instant Order/trade confirmations in the same window
Hot keys similar to a Brokers Terminal
MULTIPLE Tic-by-Tic Intra-day charts with multiple indicators
Availability of 2 ISP & 6 Servers ensuring maximum uptime
Customized alerts based on multiple parameters
Cancel All/Square Off All Facility
Window for Top Gainers, Top Losers, and Most Active updated Live

SWOT ANALYSIS
Sharekhan Advantages
Sharekhan offers different trading platform to suite customer requirement. This
includes online browser based trading, Installable terminal, mobile, call n trade
and in-person trade though branch offices.
It offers different brokerage slabs to suit individual customers. Higher your trade
your brokerage gets reduced. They have multiple brokerage schemas are available
with them.
Sharekhan offers online and classroom training, seminars and workshops to
investors.
Sharekhan doesn't charge for Online Funds Transfer from bank account and Funds
Pay-out to bank account.
Sharekhan doesn't charge for DP transactions. Share transfer from and to the dp
account is free.
Sharekhan has India-wide network of branches. You can find surly find a

Sharekhan in your neighborhood.

Call & Trade facility is free with Sharekhan.
Sharekhan allows fixed deposit as collateral for future and option trading.
Sharekhan Disadvantages

Sharekhan doesn't offer 3-in-1 account as they don't provide banking services.

They brokerage charges are % based which are higher in comparison to flat fee
brokers.

They charge minimum brokerage of 10 paisa per stock would not let you trade
stocks below 20 rs. (If you trade, you will loose majority of your money in
brokerage).

Facility to place orders after trading hours is not available.

Classic account holders cannot trade commodities.

Sharekhan Complaints received at BSE / NSE:

Number of customer complained against Sharekhan share broker. The Sharekhan
consumer complaints provide the summary of grievance which went to exchange for
resolution.
Sharekhan consumer complaints
Exchange Financial Year Number of Clients * Total Complaints **
BSE

2015-16

131,690

29

NSE

2015-16

335,843

159

BSE

2014-15

82,092

34

NSE

2014-15

342,592

141

BSE

2013-14

1,182,390

43

NSE

2013-14

274,777

142

BSE

2012-13

1,129,261

42

NSE

2012-13

1,125,128

126

BSE

2011-12

1,044,117

86

NSE

2011-12

1,033,963

173

MUTUAL FUND

The concept:

In earlier times 'direct' was the only investment vehicle available. If we wanted to buy
fixed deposit/bond we had to apply on our own. Similarly, when we wanted to buy
shares, we had to call up stock brokers, who would procure shares on our behalf and
same was the case with property. The cost involved in 'direct' buying is least amongst all
investment vehicles. However we need to have skills and time to use this form of
investing.
Another investment vehicle is a mutual fund. Mutual fund works on the concept of
pooling in money. Assume there are 5 to 6 friends who want to invest money in a
particular asset class say equity. Also assume they do not have skills and time. However
one of them knows an expert who regularly invests in stock markets. All these friends go
to an expert and give him their investment amount. The expert invests on their behalf. If
there is profit in investment, they all benefit and if there is any loss they suffer. Experts
get certain fee for investing on their behalf. This is the concept of a mutual fund.
Investing in mutual fund is slightly expensive than "direct" form of investing. However
the decision-making and procedure of investing is transferred to the Mutual Fund
Company. Insurance as an investment vehicle works somewhat similar to mutual fund,
while traditional insurance plans invest only in debt-based products and are not market
linked.
Each mutual fund has a specific stated objective
The funds objective is laid out in the fund's prospectus, which is the legal document that
contains information about the fund, its history, its officers and its performance
Fund Objective

What the fund will invest in

Equity (Growth)

Only in stocks

Debt (Income)

Only in fixed-income securities

Money Market (including In short-term money

Gilt)
government securities)
Balanced

market

instruments

(including

Partly in stocks and partly in fixed-income securities,

in order to maintain a 'balance' in returns and risk

Managed by an Asset Management Company (AMC)

The company that puts together a mutual fund is called an AMC. An AMC may have
several mutual fund schemes with similar or varied investment objectives.
The AMC hires a professional money manager, who buys and sells securities in line with
the fund's stated objective.
All AMCs Regulated by SEBI, Funds governed by Board of Directors
The Securities and Exchange Board of India (SEBI) mutual fund regulations require that
the funds objectives are clearly spelt out in the prospectus.
In addition, every mutual fund has a board of directors that is supposed to represent the
shareholders' interests, rather than the AMCs.
For small and medium investor who does not have skills and time mutual fund
seems the best option.
Currently in India we have mutual funds, which invest mainly in two asset classes, debt
and equity. And now many mutual fund companies also investing in real estate,
infrastructure projects, natural energy resources etc.

Mutual funds concept can be well understood with the following diagram:

Benefits through investing in Mutual funds:

Professional Money Management: Fund managers are responsible for implementing a
consistent investment strategy that reflects the goals of the fund. Fund managers monitor
market and economic trends and analyze securities in order to make informed
investment decisions.
Diversification: Diversification is one of the best ways to reduce risk Mutual funds

offer investors an opportunity to diversify across assets depending on their investment

needs
Liquidity: Investors can sell their mutual fund units on any business day and receive the
current market value on their investments within a short time period (normally three- to
five-days

Affordability: The minimum initial investment for a mutual fund is fairly low for most
funds (as low as Rs500 for some schemes).

Convenience: Most private sector funds provide you the convenience of periodic
purchase plans, automatic withdrawal plans and the automatic reinvestment of interest
and dividends. Mutual funds also provide you with detailed reports and statements that
make record-keeping simple. You can easily monitor the performance of your mutual
funds simply by reviewing the business pages of most newspapers or by using our Mutual
Funds section in Investors Mall.

Flexibility and variety: You can pick from conservative, blue-chip stock funds, sectoral
funds, funds that aim to provide income with modest growth or those that take big risks
in the search for returns. You can even buy balanced funds, or those that combine stocks
and bonds in the same fund.
Tax benefits on Investment in Mutual Funds:

100% Income Tax exemption on all Mutual Fund dividends

Capital
Gains
Tax
to
be
lower
of
10% on the capital gains without factoring indexation benefit and
20% on the capital gains after factoring indexation benefit.
Open-end funds with equity exposure of more than 50% are exempt from the
payment of dividend tax for a period of 3 years from 1999-2000.
INDUSTRY OVERVIEW
A little history:
Mutual funds made an opening in India in 1963 under the enactment f Unit Trust of India

(UTI), which came out with is debut scheme named US-64, an open ended scheme n,
which is operating till date. Up to 1986-87 it had launched 20 schemes, mobilizing net
resources amounting to Rs. 4564 crores.for these 23 long years up to 1987 UTI enjoyed
complete monopoly of the unit trust business in India. It remained one and the only
mutual fund in India. as the next logical step, public sector banks and financial
institutions were allowed to float mutual funds and their success emboldened the
government to allow the private sector to foray into this area.
The initial years of the industry also saw the emerging years of the Indian equity market,
when a number of mistakes were made and hence the mutual fund schemes, which
invested in lesser-known stocks and at very high levels, became loss leaders for retail
investors. From those days to today the retail investor, for whom the mutual fund is
actually intended, has not yet returned to the industry in a big way. But to be fair, the
industry too has focused on brining in the large investor, so that it can create a significant
base corpus, which can make the retail investor feel more secure.
Ups & Downs of Mutual fund Industry In India
Ten years ago, close-end funds were the order of the day. Most debt funds offered assured
returns. And even equity funds managed to convey the impression of fixed returns by
sporting calling themselves "Triple Plus" and "Double Square Plus". Equity funds were
largely judged by their dividends, rights and bonus offers, rather than by the returns.
The mutual fund industry has lived through its share of crises of confidence over the past
ten years. And there are still grey areas. But the regulatory framework, disclosure norms
and service standards have all changed beyond recognition, making mutual funds one of
the most investor-friendly avenues available today.
Private sector plays:
When the first crop of private sector-sponsored mutual funds (such as Kothari Pioneer,
20th Century Finance and Apple Finance) debuted in 1993-94, they had a difficult time
weaning investors away from the Unit Trust of India and the public sector banksponsored funds.
The bull market of 1994 and the subsequent IPO boom changed all this. With retail
investors tasting the power of the equity, a spate of private equity funds made their debut
in 1994-95.

Funds such as the Apple Midas the Goldshare and Morgan Stanley Growth Fund drew
retail investors in large numbers. Unfortunately, as the IPO bubble burst, and the equity
market went into a slide, so did the NAV of the equity funds launched in the bull market.
But the important development during this period was the emergence of open-end funds,
which offered on-tap liquidity to their investors and raised the bar on NAV and portfolio
disclosures.
The second coming: After the upsets of 1994-95, it was a slow and painstaking recovery
for the private sector funds. In the five years that followed, many more private sector
funds threw their hat into the ring, some of them big global names such as Alliance
Capital, the Templeton group, Newton and Principal Financial.
With a lull in the equity market, fund houses spent this period expanding their portfolio
of debt offerings. Alongside the plain-vanilla debt funds, came the gilt, liquid, cash funds
and treasury management plans, to cater to high net worth and corporate investors. There
was also a slew of balanced and hybrid fund launches.
During this period, assured return schemes from the UTI and the bank-sponsored funds
were buffeted by controversy, after some reneged on promises. This was followed by the
crisis in US-64. These events helped drive the concept of market-linked returns firmly
into the minds of investors. And this put private sector fund houses firmly back on the
radar screens of investors.
Restructuring pays off: The years from 1996 to 1998 saw equity funds restructuring
their portfolios and piling them up with FMCG, pharma and infotech stocks. By end1999, the secular bull run, led by the IT stocks, had helped many an equity fund build an
impressive record of performance. But this "second coming" of equity funds was also to
end in disappointment. The newfound fancy for equity saw the rollout of a slew of
technology funds at the height of the bull markets in 2000. When these crashed, some of
the goodwill painstakingly built by the equity funds also took a beating.
Debt in fashion: But, by then, private sector fund houses had managed to build up a
strong performance track record in their debt products. Helped by the secular decline in
interest rates and a basket of innovative offerings, mutual funds managed to deliver
returns that were substantially higher than what was available from alternative savings
avenues such as fixed deposits.
This led to a large-scale migration of assets to debt-oriented mutual funds.

By 2003, private sector mutual funds had wrested a lion's share of the mutual fund assets
from the UTI and the PSU bank-sponsored funds. By end-December 2003, the mutual
fund industry was managing Rs 1,40,000 crore of assets, with 80 per cent of it in private
sector funds.
Swept by consolidation: The years from 1999-2003 saw a considerable churn in the
industry. With competition intensifying, the weaker players were taken over. There was
also a coming together of some of the larger fund houses.
The takeover of the Kothari Pioneer funds by the Franklin Templeton group and the
Zurich funds by the HDFC group are instances. A few fund houses saw their foreign
partners pull out, only to be replaced by new ones. Over the past couple of years, some of
the big global names in financial services HSBC, Grindlays and Deutsche Bank
have made an entry into the Indian fund arena. With US fund behemoth Fidelity
now readying to enter the Indian market, the industry, at long last, appears to be reaching
maturity.
Regulations stay in tune: Regulations have kept pace with the rapid changes in the
industry structure over the past decade. Both the offer documents and the financial
statements of mutual funds have been simplified over the years. Half-yearly portfolio and
financial disclosures have been made compulsory.
Stringent investment norms have been put in place to prevent concentration and reduce
exposure to illiquid and thinly traded securities. Disclosure requirements have been finetuned to reveal more about the pattern of ownership in a fund, and transactions with
related and group companies. SEBI recently trained its sights on reforming the
distribution and selling side of the mutual fund business.
Healthy competition: Intensifying competition has ensured that the fund houses have
kept two jumps ahead of the regulatory requirements, at least on disclosures and service
standards. Daily NAV is now a standard feature with funds, and transaction-processing
times have been compressed to less than 48 hours.
Many funds have moved to a monthly disclosure of portfolios. Dissemination of
information has leapfrogged with the use of websites for routine disclosures. Value-added
services such as systematic investment plans, switch options, cheque-writing facilities,
and call centre services promise to improve the investing experience for investors.
Savvy investors: As the equity market pauses after the secular bull run of 2003, equity

funds appear to be back in the investors' good books. Hybrid products such as the MIPs
(Monthly Income Plans) and equity funds have attracted sizeable inflows in the recent
months. Is this a sign that retail investors are finally beginning to channel their
investments in equities through mutual funds? Or, are they, yet again, falling into the ageold trap of jumping onto the bandwagon, in the late stages of a stock market rally?
It is early days yet to say which of these is true. But there are a couple of positive signals
from the pattern of fund flows in the recent months.
For one, inflows have been pretty selective, a sign that investors are tracking fund
performance far more closely than before.
Second, outflows from equity funds have also been rising, which suggests that investors
are selling out when their target returns are met.
These are signs that mutual fund investors may be on to the two crucial skills for
successful investing a sense of timing and investment discipline; and that, too, at the
same time.
Basis on which Mutual funds are compared :
Choosing a mutual fund seems to have become a very complex affair lately. There are no
dearth of funds in the market and they all clamor for attention.
The most crucial factor in determining which one is better than the rest is to look at
returns. Returns are the easiest to measure and compare across funds.
At the most trivial level, the return that a fund gives over a given period is just the
percentage difference between the starting Net Asset Value (price of unit of a fund) and
the ending Net Asset Value.
Returns by themselves don't serve much purpose. The purpose of calculating returns is to
make a comparison. Either between different funds or time periods. And, you must be
careful not to make a mistake here. Or else, you could end up investing in the wrong
funds.
Absolute returns
Absolute returns measure how much a fund has gained over a certain period. So you look
at the NAV on one day and look at it, say, six months or one year or two years later. The

percentage difference will tell you the return over this time frame.
But when using this parameter to compare one fund with another, make sure that you
compare the right fund. To use the age-old analogy, don't compare apples with oranges.
So if you are looking at the returns of a diversified equity fund (one that invests in
different companies of various sectors), compare it with other diversified equity funds.
Don't compare it with a sector fund which invests only in companies of a particular
sector. Don't even compare it with a balanced fund (one that invests in equity and fixed
return instruments).
Benchmark returns
This will give you a standard by which to make the comparison. It basically indicates
what the fund has earned as against what it should have earned. A fund's benchmark is an
index that is chosen by a fund company to serve as a standard for its returns. The market
watchdog, the Securities and Exchange Board of India, has made it mandatory for funds
to declare a benchmark index. In effect, the fund is saying that the benchmark's returns
are its target and a fund should be deemed to have done well if it manages to beat the
benchmark.
Let's say the fund is a diversified equity fund that has benchmarked itself against the
Sensex.
So the returns of this fund will be compared vis-a-viz the Sensex. Now if the markets are
doing fabulously well and the Sensex keeps climbing upwards steadily, then anything less
than fabulous returns from the fund would actually be a disappointment.
If the Sensex rises by 10% over two months and the fund's NAV rises by 12%, it is said to
have outperformed its benchmark. If the NAV rose by just 8%, it is said to have
underperformed the benchmark.
But if the Sensex drops by 10% over a period of two months and during that time, the
fund's NAV drops by only 6%, then the fund is said to have outperformed the benchmark.
A fund's returns compared to its benchmark are called its benchmark returns.
At the current high point in the stock market, almost every equity fund has done
extremely well but many of them have negative benchmark returns, indicating that their
performance is just a side-effect of the markets' rise rather than some brilliant work by
the fund manager.

Time period
The most important thing while measuring or comparing returns is to choose an
appropriate time period.
The time period over which returns should be compared and evaluated has to be the same
over which that fund type is meant to be invested in.
If you are comparing equity funds then you must use three to five year returns. But this is
not the case of every other fund.
For instance, cash funds are known as ultra short-term bond funds or liquid funds that
invest in fixed return instruments of very short maturities. Their main aim is to preserve
the principal and earn a modest return. So the money you invest will eventually be
returned to you with a little something added.
Investors invest in these funds for a very short time frame of around a few months. So it
is alright to compare these funds on the basis of their six month returns.
Market conditions
It is also important to see whether a fund's return history is long enough for it to have
seen all kinds of market conditions.
For example, at this point of time, there are equity funds that were launched one to two
years ago and have done very well. However, such funds have never seen a sustained
declining market (bear market). So it is a little misleading to look at their rate of return
since launch and compare that to other funds that have had to face bad markets.
If a fund has proved its mettle in a bear market and has not dipped as much as its
benchmark, then the fund manager deserves a pat on the back.

Operational schemes

Open-ended schemes

In these schemes, size of the fund is not predetermined as

entry to or exit from the funds is open to investor who can buy or sell the securities to
the fund at any time. This fund has greater liquidity to the funds along with the

predetermined repurchase price based on the declared Net Asset Value. Portfolio mix
of such schemes consists of actively traded securities in the market, preferably equity
shares. As investors can anytime withdraw from the fund, therefore the management
of such funds is quiet tedious.

Closed ended schemes

This scheme has deposits redemption date unlike openended schemes. These funds have fixed capital base and are traded among the
investors among the secondary market. the forces of demand and supply hence
determine their price. Price is free to deviate from its net asset value. Management of
such fund is comparatively easier because manager can evolve long term investment
plans depending upon the life of the scheme.
Within these two broad operational classification there are following
classification being made.
RETURN BASED CLASSIFICATION
Income funds: These are for the investors who are more concerned about regular
returns from their investment.
Growth funds: The main objective of this fund is to achieve an increase in value of
investment through capital appreciation and not the regular income.
Conservative funds: These funds aim at giving reasonable rate of return in addition to
capital appreciation.
Investment based classification:
Equity funds :These funds invest in the equity shares of companies and undertake greater
risk associated with it. This gives good rate of return in rising market.

Bond funds: These funds provide greater security to investors by investing in bonds,
debenture, etc. investment here has no capital appreciation.

Balanced funds: These funds are a combination of both debt and equity .trends in market
will determine which proportion of the mix is to be determined.

Sector based classification: These funds or the schemes that invest in the securities of
only those sectors or industries as specified in the offer documents.eg pharmaceuticals,
software, fast moving consumer goods (FMCG), petroleum stocks etc. the returns on
these funds or the schemes depends on the performance of that particular
sector/industries. These schemes may give the higher returns but are very risky compared
to diversified funds. Investors need to keep an eye on the performance of these of these
sectors and should exit on an appropriate time.
Leverage based classification:In this type of fund or scheme investment is made by
borrowing money from the market and making investment in fund there by making
leverage benefits available to mutual fund investor, i.e. giving good returns to the
investors from the income earned by investing borrowed funds.
Index-based classification :Index funds replicate the portfolio of a particular index such
as the BSE sensitive index, S&P NSE 50 index (nifty). These schemes invest in the
securities in the same weight age comprising of an index. NAVs of such schemes would
rise or fall in accordance with the rise or fall in the index, through not exactly by the
same by the same percentage due to some factors. Necessary disclosure in this regard is
made in offer document of the mutual fund schemes. There are also exchange traded
index funds launched by the mutual funds that are traded on the stock exchanges.
GILT-FUND:These funds invest exclusively in government securities. Government
securities have no default risk .NAVs of these schemes also fluctuate due to change in
interest rates and other economic factors as are the case with income or debt oriented
schemes.
DIFFERENT TYPES OF PLANS THE MUTUAL FUND OFFERS
Mutual fund offers different types of plans to its investors. they are as follows.

GROWTH PLAN

Under growth plan the investor realizes only the capital

appreciation on the investment and does not get any income in the form of dividend.

INCOME PLAN

Under income plan, the investor realizes income in the form of

dividend. However, his NAV will all to the extent of the dividend.

DIVIDEND RE-INVESTMENT PLAN

Here the dividend accrued on the mutual funds is

automatically re-invested in the purchasing additionally units in the open ended
funds. In most cases mutual funds offer the investor an option of collecting dividends
or re-investing the same.
4. SYSTEMATIC INVESTMENT PLAN In this type of plan the investor is given the
option of preparing a predetermined number of post dated cheques in favour of the fund.
He will get the units on the date of cheque at the existing NAV. For instances , if on the
5th March ,he has given a post dated cheque for June 5 th 2006, he will get units on 5 th
June 2006 at the existing NAV.

SYSTEMATIC WITHDRAWAL PLAN As opposed to SIP, the systematic

withdrawal plan allows the investor the facility to withdraw predetermined
amount/units from his fund at a pre-determined interval. The investors units will
be redeemed at the existing NAV as on that day. The unit holder may set-up a
systematic Withdrawal plan on a monthly, quarterly or semi annually or on a
annual basis to redeem a fixed number of units or redeem enough units to provide
a fixed amount of money.
6.
RETIREMENT PENSION PLAN Some schemes are linked with retirement
pension. Individuals participate in these plans for themselves, and corporate for their
employees.
7.

INSURANCE PLANS:
Some schemes launched by UTI and LIC offer insurance cover to investor.

TAX SAVING SCHEMES

These schemes offer tax rebates to the investors under specific provisions of
the income tax act, 1961 as the government offers tax incentives for investment in
specified avenues, eg: Equity Linked Saving Scheme (ELSS). Pension schemes
launched by the mutual fund also offer tax benefits. These schemes are growthoriented and invest pre-dominantly in equities. Their growth opportunities and risk
associated are like any equity oriented scheme.
LOAD OR NO LOAD FUND

A load fund is one that charges a percentage of NAV for entry or exit. That is,
each time one buys or sells the units in the fund, a charge will be payable. This charge
is used by the mutual fund for marketing and distribution expenses. Suppose the NAV
per unit is Rs.10 .if the entry as well as exit load charge is 2% , then the investors who
buy would be required to pay Rs.10.20 and those would want to repurchase must pay
Rs.9.80 per unit. A no-load fund is the one that does not charge for entry or exit. It
means the investors can enter the fund/scheme at NAV and no additional charges are
payable on the purchase or sale of units.

Terminologies Demystified

Asset Allocation
Diversifying investments in different assets such as stocks, bonds, real estate, cash
in order to optimize risk.
Fund Manager
The individual responsible for making portfolio decision for a mutual fund, in line
with funds objective.
Fund Offer Document
Document with investment objectives, risk factors, expenses summary, how to
invest etc.
Dividend
Profits given to the investor from time to time.
Growth
Profits ploughed back into scheme. This causes the NAV to rise.
NAV
Market value of assets of scheme minus its liabilities.
Per unit NAV
=
Net Asset Value
No. of Units Outstanding on Valuation date
Entry Load/Front-End Load (0-2.25%)
The commission charged at the time of buying the fund.
To cover costs for selling, processing
Exit Load/Back- End Load (0.25-2.25%)
The commission or charge paid when an investor exits from a mutual fund.

Imposed to discourage withdrawals

May reduce to zero as holding period increases.
Sale Price/ Offer Price
Price you pay to invest in a scheme. May include a sales load. (In this case, sale
price is higher than NAV)
Re-Purchase Price/ Bid Price
Price at which close-ended scheme repurchases its units
Redemption Price
Price at which open-ended scheme

ASSOCIATION OF MUTUAL FUNDS IN INDIA [AMFI]

With increase in Mutual Fund players in India, a need for mutual fund association in
India was generated to function as a non-profit organization.
Association of mutual funds in India (AMFI) was incorporated on 22nd August, 1995.
AMFI is an apex body of all Assets Management Companies (AMC) which has been
registered with Security Exchange Board of India (SEBI) .till date all the AMCs are that
have mutual fund schemes are its members. It functions under the supervision and
guidelines of its board of Directors.
Association of Mutual Funds India has brought down the Indian Mutual Fund Industry to
a professional and a healthy market with the ethical lines enhancing and maintaining
standards. It follows the principle of both protecting and promoting the interests of
mutual funds as well as their unit holders.
THE OBJECTIVES OF ASSOCIATION OF MUTUAL FUNDS IN INDIA
The Association of Mutual Funds of India works with 30 registered AMCS of the
country. It has certain defined objectives which juxtaposes the guidelines of its Board of
Directors. The objectives are as follows.

This Mutual Fund Association of India maintains high professional and ethical
standards in all areas of operation of the industry.
It also recommends and promotes the top class business practices and code of conduct
which is followed by members and related people engaged in activities of Mutual Fund

and Assets Management. The agencies that are by any means connected or involved in
this code of conduct of the association.

AMFI interacts with SEBI and works according to SEBIs guidelines in the
mutual fund industry.
Association of Mutual Fund of India do represent the government of India , the Reserve
bank of India and other related bodies on matters relating to the Mutual Fund Industry.

It develops a team of well qualified and trained agent distributors. It implements a

programme of training and certification for all intermediaries and other engaged
in the Mutual Fund Industry.
AMFI undertakes all India awareness programme for investors in order to
promote proper understanding of the concept and working of mutual funds

The sponsors of Association of Mutual Funds in India.

Bank sponsored

SBI Mutual management Ltd.

BOB asset management CO. Ltd.

Canbank Investment Management Services. Ltd

UTI Asset management Company Pvt, Ltd.

Institution

GIC Asset management Co.Ltd

Jeevan Bima sahayog asset management Company.

PRIVATE SECTOR
INDIAN

Benchmark asset management company

Cholamandalam Asset Management Co.Ltd
Credit Capital Asset Management Co.Ltd
Escorts Asset Management Ltd
JM Financial Mutual fund
Kotak Mahindra asset management company
Reliance capital Asset management Ltd
Sahara Asset management Co.Ltd
Sundaram Asset management Co.Ltd

Sharekhan
Mutual Funds

TOP SIP
Data as on August 01, 2016

SIP investment (monthly Rs1,000)*

1 year

3 years

5 years

Total amount invested (Rs)

12,000

36,000

60,000

Funds would have grown to

Present

Compounded

Present

Compounded

Present

Compounded

value

annualised

value

annualised

value

annualised

(Rs)

return (%)

(Rs)

return (%)

(Rs)

return (%)

32

13,478

13.5

48,381

10.7

1,01,091

11.2

179

13,480

13.5

46,158

8.9

95,345

9.9

NAV

Large-cap funds
SBI Bluechip Fund
Birla Sun Life Frontline Equity Fund

Kotak 50

186

13,178

10.7

45,314

8.2

89,601

8.5

Reliance Top 200 Fund

25

12,982

8.9

44,756

7.8

91,603

9.0

ICICI Prudential Select Large Cap Fund

25

13,707

15.6

44,458

7.5

88,497

8.2

28,003

12,946

8.6

40,417

4.0

77,935

5.5

DSP BlackRock Micro Cap Fund

49

13,869

17.1

61,417

20.1

1,39,356

18.7

Franklin India Smaller Companies Fund

46

13,842

16.8

56,074

16.4

1,32,591

17.5

UTI Mid Cap Fund

88

13,386

12.6

53,380

14.5

1,21,436

15.4

HDFC Mid-Cap Opportunities Fund

43

13,696

15.5

52,433

13.8

1,15,083

14.2

IDFC Premier Equity Fund

78

13,226

11.2

48,472

10.7

1,03,033

11.6

12,709

13,842

16.8

50,741

12.5

99,874

10.9

Birla Sun Life Pure Value Fund

45

13,802

16.5

53,868

14.8

1,19,854

15.1

L&T India Value Fund

28

13,475

13.5

52,521

13.8

1,14,666

14.1

SBI Magnum Multi Cap Fund

38

13,620

14.8

50,521

12.3

1,04,890

12.0

124

13,200

10.9

49,485

11.5

1,09,632

13.0

26

13,560

14.2

48,728

10.9

1,01,914

11.4

11,591

13,243

11.3

43,332

6.6

83,972

7.1

Axis Long Term Equity Fund

33

13,191

10.9

49,223

11.3

1,09,524

13.0

Birla Sun Life Tax Relief 96

24

13,204

11.0

48,693

10.9

1,02,879

11.6

Kotak Taxsaver

33

13,343

12.3

47,203

9.7

92,467

9.2

296

13,284

11.7

46,426

9.1

97,609

10.4

31

12,985

9.0

46,210

8.9

96,910

10.2

BSE Sensex
Mid-cap funds

BSE Midcap
Multi-cap funds

ICICI Prudential Value Discovery Fund

Kotak Select Focus Fund
BSE 500
Tax-saving funds

ICICI Prudential Long Term Equity Fund

(Tax Saving)
BNP Paribas Long Term Equity Fund

Nifty 50

8,637

13,097

10.0

41,417

4.9

(*invested on 1st day of every month)

We will be showing compounded annualised returns for three years and five years from now on.

Scheme analysis

With more than ten years of experience, the fund has been a good performer in comparison with the
benchmark index, S&P BSE 500. Despite the volatility and uncertainties in the market, the fund has
performed better than its benchmark index, giving returns of 30.3% over the last three years as against
18.6% return given by the benchmark index. Over the longer term horizon of five years, the fund has
grown at 18.7% compounded annual growth rate (CAGR) while the S&P BSE 500 Index and the category
average have grown at 10.2% and 20.2%, respectively.

The fund currently has about 51 stocks in its portfolio. It has nearly 89% of its net assets exposed to equity
while the rest is exposed to other money-market instruments. The top ten stocks form about 34% of the
portfolio. The fund has invested nearly 16% of its funds in the Financial Services sector followed by
Services and Consumer Goods with 15% and 14.7% allocations, respectively.

Sharekhan

August 11, 2016

RESEARCH METHODOLOGY
Research design
Research instrument
Questionnaire
Contact method

Method of data Collection

-

- Descriptive research
- Questionnaire
-Open ended and close ended
- Survey
- Personal interview
- Online interview
- Primary data and Secondary data

79,708

5.9

Sampling method
Sampling type
Sampling unit
Sampling size

- Non-probability sampling
- Area sampling
- Consumers
- 50

Research Design
There are three types of research design. They are
Descriptive

Exploratory

Explanatory

In this research the research design adopted is Descriptive research design.

Descriptive Research Design

It is designed to describe something, such as demographic characteristics of consumers
who use the products. It deals with determining frequency with something occurs or how
two variables vary together. This study is also guided by an initial
Hypothesis.

Importance of Descriptive Study

During the analysis of characteristics of certain groups, for e.g. users of a product
with different age, sex, education etc.

To forecast the future trends, e.g. sales of a companys product in each of next
five years.

To study whether certain variables are associated, e.g. income and usage of a
product.

Questionnaire Design
Designing and implementing the questionnaire is one of the most interesting and
challenging tasks of conducting research. Questionnaire designing also becomes
important and necessary when he/she observes that unless the data discussion or
otherwise is noted down, is basic form will be distorted. The questionnaire is the
backbone for obtaining data during a personal interview, telephone survey, and mail
survey.

 Meaning of Questionnaire
A questionnaire is a form prepared and distributed to secure response to certain question.
The term questionnaire refers to a self administration process here by the respondent
himself/herself reads the questionnaire and records his/her answer assistance of an
interviewer.
Purpose of questionnaire is two fold
To collect information from the respondent who are scattered in a vast area.

To achieve success in collecting reliable and dependable data.

Determining Type of Question

After specifying the required data, the researcher must decide the type of question
required to be asked from the respondents to collect this data. He/she must understand
various existing types of question and decide which of these would suit the most of
his/her project situation. There are different types of questions they are as follows:
Direct question Direct question are just what their name indicates e.g. Have you ever
purchased brand?
Indirect question Indirect refers to those whose responses are used to indicate or
suggest date about respondents other than the actual facts given in the answer. For e.g.
why you think most other people buy prefer SHAREKHAN ?
Open ended question Sometimes these question are called free answer questions the
respondent answer in his/her words, for e.g. and open ended question on a study on
Orange squashes can be asked as what suggestion do you make for improving orange
squashes? In this case no answer choice is given to the respondent and he/she may give
any answer he/she thinks.
Close ended question Such guests are also called fixed alternative questions. The
alternative questionnaire may take the form of dichotomous question multiple choice
question checklist and rating scales, such as ordinal scale nominal scale etc.
Question method of data collection is quite popular and consists of question printed or
typed in a form or set of forms. Care was taken in the main aspect as general form.
Question sequence, question formulation and wording, the study was associated with
both the question i.e., closed ended and open ended questions. Free responses were
invited from the respondents.

Types of Questionnaire
The study conducted by using structural and undisguised questionnaire. It comprises of

both open and closed ended questions. Questions are rather framed for the customer
attitude including the multiple choice and dichotomous questions.
The following are the contact method generally user for survey.
Mail survey

Telephone interview

Personal interview

Method of Data Collection

The task of collecting data being after a research problem has been defined and plan is
chalked and plan is chalked out. This study pertains to collect data from primary sources
primary data and from secondary sources secondary data.

Primary data
Primary data are that information which is collected, fresh and fir the first time thus
happens to be original in character primary data can be collected in marketing by three
basic methods, viz., survey, observation and experiments.

Secondary data
On the other hand are those, which have already been passed through the statistical
process.
The secondary data are that information which is collected from internal sources as well
as external sources, Wizs from the company own the records and documents.
Secondary data was collected from the registers, manuals, information bulletins
maintained by the personnel department and other records, information collected in this
manner was immediately complied processed manually and a statistical structure was
given to the data to help interpretation of the statistical data.
Sampling Procedures
Sampling can be carried out fewer than two important methods, in order to obtain a
respective of the sample they are classified as:
1. Probability sampling
2. Non-probability sampling

Sampling Size
55 consumers are taken as samples.

Sampling Procedures
Selection for this study in area sampling /cluster sampling.

DATA ANALYSIS &

INTERPRETATION
AGE:Table 5.1
20-30

18

30-40

40-50

20

ABOVE 50

5
Figure 5.1

INTERPRETATION :- From the above study the result is 18 respondance

between 20 30 age , 7 respondance between 30 40 age , 20 respondance
between 40 50 age , and only 5 respondance Above 50 age are the interested in
Equity trading in SHAREKHAN . majority 40 50 age people are came.

GENDER:Table 5.2
MALE

36

FEMALE

14

Figure 5.2
INTERPRETATION: - From the above study we can clarify that out of 50, 36
male respondence and 14 female respondance are doing trading in
SHAREKHAN. So we can clarify that male are more interested compare to
female in Equity trading in sharekhan.

OCCUPATION:Table 5.3
STUDENT

10

PUBLIC SECTOR JOB

PVT. SECTOR JOB

PROFESSIONAL

BUSINESS

12

OTHERS

4
Figure 5.3

INTERPRETATION :- From the above study we can see that out of 50

respondance , 10 respondance are students , 8 respondance have public sector
job , 9 respondance have pvt. Sector job, 7 respondance are professionals, 12
respondance are Businessman, and 4 are related to the other work. We can justify
that business people are more interested in equity trading with SHAREKHAN.

ARE YOU DOING ONLINE TRADING IN EQUITY MARKET?

Table 5.4
OPTIONS

TOTAL NUMBER OF

PERCENTAGE

PEOPLE

YES

50

90%

NO

10%

Figure 5.4
INTERPRETATION: - we can see that out of 50 respondance, 50 respondance
are aware and only 5 respondance are not aware about the online trading. From
the above mention graph we can clearly identify that most of the people are
aware about the online trading.

WHAT IS YOUR OPINION ABOUT EQUITY SHARES?

Table 5.5
OPTIONS

TOTAL NUMBER OF

PERCENTAGE

PEOPLE
It offers an investment facility

14

28%

It make earn quick profit /

12

24%

It is a part of an investment

10

20%

It offers easy liquidity

14

28%

gain

Figure 5.5
INTERPRETATION :- out of 50 respondance , 28% are belives that shares offer
an investment facility , 24% people are believes that shares are earn quick profit /
gain , 20%are believe that it is a part of an investment , 28% people are believes
that shares are useful for easy liquidity.
HOW DID YOU COME TO KNOW ABOUT SHAREKHAN ONLINE
TRADING EQUITY SHARES?
Table 5.6
OPTIONS

TOTAL NUMBER OF

PERCENTAGE

PEOPLE

Share broker

12

24%

Friends

10%

Bankers

24

48%

Online adv.

18%

Figure 5.6
INTERPRETATION :- Out of 50 respondance , 24% people got information
about sharekhan from share brokers , 10% people got information about
sharekhan from friends ,48% people got information about sharekhan from
bankers , 18% people got information about sharekhan from online
advertisement . So we can justify that majority people have got information from
friends and relatives.
WHAT IS YOUR OBJECTIVE BEHIND INVESTING IN EQUITY
SHARES?

Table 5.7
OPTIONS

TOTAL NUMBER OF

PERCENTAGE

PEOPLE
Additional return

10

20%

Earn high dividends

17

34%

Easy liquidity

16%

Capital appreciation in the

15

30%

long run

Figure 5.7

INTERPRETATION :- Out of 50 respondance , 20% people are thinks that

investing in share is additional return, 34% people are thinks that investing in
share is earn high dividend ,16% people are thinks that investing in share is easy
liquidity , 30% people are thinks that investing in share is capital appreciation for
long term . Most of the people are investing only for earn high profit / gain.

HOW FREQUENTLY YOU INVEST IN EQUITY SHARES?

Table 5.8
OPTIONS

TOTAL NUMBER OF

PERCENTAGE

PEOPLE
Monthly

22

44%

Every 3 months

16%

Every 6 months

18%

Intraday

11

22%

Figure 5.8

INTERPRETATION :- Out of 50 respondance , 44% people are invest in

shares Monthly, 16% people are invest in shares Every 3 month , 18% people are
invest in shares Every 6 month , 22% people are invest in intraday.

HOW MUCH RISK CAN YOU TAKE AT A TIME IN EQUITY MARKET?

Table 5.9
OPTIONS

TOTAL NUMBER OF

PERCENTAGE

PEOPLE
Whole money

10%

Half money

14%

Depends on market

11

22%

On particular brand only

10

20%

Cant say

17

34%

Figure 5.9

INTERPRETATION :- Out of the 50 people , 10% people are take risk on whole
money , 14% people are take risk on Half money , 22% people are take risk on
the depends on market , 20% people are take risk on a particular brand only , 34%
people are take risk for them Cant say.

Have you ever felt dissatisfied with any of the services of our company
Sharekhan?
Table 5.10
OPTIONS

TOTAL NUMBER

PERCENTAGE

OF PEOPLE
Slow operation

15

30%

Delayed correspondence

17

34%

Inaccessibility to the service

14%

11

22%

centre
Fund transfer facility

Figure 5.10

INTERPRETATION: - Out of the 50 respondance 30% people are dissatisfy

with services of sharekhan is Slow operation, 34% people are dissatisfy with
services of sharekhan is Delayed operation, 14% people are dissatisfy with

services of sharekhan is inaccessibility to the service centre, 22% people are

dissatisfy with services of sharekhan is Fund transfer facility.

Are you satisfied by the brokerage charges of transactions when compared to

other competitors in the equity market?
Table 5.11

OPTIONS

TOTAL NUMBER OF
PEOPLE

PERCENTAGE

Satisfied
Dissatisfy
Cant say

23
15
12

46%
30%
24%

Figure 5.11
INTERPRETATION :- Out of 50 Respondance , 46% are satisfied with
Brokerage of Sharekhan , 30% people are Dissatisfied with Brokerage of
Sharekhan , 24% people cant say for Brokerage of Sharekhan
Are you satisfied by the options provided by the BTST/DELIVERY (buy
today sell tomorrow) company?
Table 5.12
OPTIONS

TOTAL NUMBER OF
PEOPLE

PERCENTAGE

Yes
No

40
10

80%
20%

Figure 5.12
INTERPRETATION: - Out of 50 respondance, 80% people are satisfied by the options
BTST/DELIVERY (buy today sell tomorrow), 20% people Dissatisfied by the options
BTST/DELIVERY (buy today sell tomorrow

Are you aware of the absence of AMC (Annual maintenance charges) with
reference to Sharekhan?
Table 5.13
OPTIONS

TOTAL NUMBER OF
PEOPLE

PERCENTAGE

Yes
No

50
0

100%
0%
Figure 5.13

INTERPRETATION: - Out of 50 respondance all 50 are aware about the AMC.

Are you aware of TRADE TIGER software, which is being used for the
online transactions?
Table 5.14
OPTIONS

TOTAL NUMBER OF
PEOPLE

PERCENTAGE

Yes
No

47
3

94%
6%

Figure 5.14
INTERPRETATION: - From the 50 respondance 94% are aware about the

TRADE TIGER, only 6% are not aware.

Are you satisfied by the overall services provided by Sharekhan?
Table 5.15
OPTIONS

TOTAL NUMBER OF
PEOPLE

PERCENTAGE

Satisfied
Dissatisfy
Cans say

35
10
5

70%
20%
10%

Figure 5.15

INTERPRETATION: - services From the 50 respondance, 70% are satisfied by

the overall services provided by Sharekhan , 20% are Dissatisfy by the overall
services provided by Sharekhan , 10% people cant say by the overall services
provided by Sharekhan
What factor you consider the most while purchasing shares of a company?
Table 5.16

OPTIONS

Promoters background
Premium account
Performances of company
Sector performance

TOTAL NUMBER OF PEOPLE

11
10
25
4

PERCENTAGE

22%
20%
50%
8%

Figure 5.16
INTERPRETATION: Out of 50 respondence , 22% people purchase share on
basis of the Promoters background, 20% people are purchasing the shares on
basis of premium account, 50% people are purchasing shares on basis of the
performance of the company, 8% people are purchasing their shares on basis of
sector performance.

Which exchange would you like to trade most?

Table 5.17

OPTIONS

TOTAL NUMBER OF
PEOPLE

Bombay stock exchange

National stock exchange
Cant say

20
20
10

PERCENTAGE

40%
40%
20%

Figure 5.18

INTERPRETATION: Out of 50 people, 40% people would like to trade in

Bombay stock Exchange, 40% people would like to trade in National stock
exchange and 20 % people cant Say where they would like to trade

What do you think about the tips provided by sharekhan?

Table 5.19
OPTIONS

Satisfactory
Dissatisfactory
Cant say

TOTAL NUMBER OF PEOPLE

30
10
10

PERCENTAGE

60%
20%
20%

Figure 5.19

INTERPRETATION: Out of 50 people, 60% people are satisfied by the tips

provided bysharekhan, 20% people are dissatisfy with tips provided by sharekhan,
20% people cant say About the tips provided by sharekhan.

Have you ever attend seminar of market outlook which are organized by
sharekhan?
Table 5.20
OPTIONS

Yes
No

TOTAL NUMBER OF
PEOPLE

30
20

PERCENTAGE

60%
40%

Figure 5.20

INTERPRETATION: Out of 50 people, 60% People have attended a seminar of

market Outlook organized by sharekhan, 40% people have not attended a seminar
of market outlook Organized by sharekhan.

FINDINGS
In the prevailing competitive environment existing in the share industry, the market
potential and promotional strategy is changing from time to time. So there is a need to
analyze the market efficiency and promotional strategy prevailing in the market
For the development of SHAREKHAN.
It is found from the study customer awareness toward SHAREKHAN in different aspects
are as follows:
AGE wise highest people come between the ages of 40 50 i.e. 20. Second
highest 20 30 i.e. 18.
As SHAREKHAN deals with online shares, 47 of the customers are aware of the
online shares and 3 of the respondents are not aware of online shares.
Out of 50 respondance , 14 are believes that shares offer an investment policy , 12
people are believes that shares are earn quick profit / gain , 10 are believe that it is
a part of an investment , 14 people are believes that shares are useful for easy
liquidity.

Maximum no. of customers got knowledge about SHAREKHAN through

Friends that is 24, next to that they come to know through the Share Brokers that
is 12 and rest of the customers through online adv. and bankers.
Majority of the customers main objective is to invest in shares is earn high returns
that is 17 , easy liquidity around 8 , 10 of the respondents invest because of the
tax-saving rest to 15 capital appreciation in long run. So overall result is people
invest shares only for earning high dividends and Capital appreciation for long
term.
Around 8 of the customers invest shares in the time gap within 3 months. 22 of
the customers invest Monthly. It is the major in numbers.

When we talk about risk taking, 11 people are take risk on the depends on market,
10 people are take risk on a particular brand only, 17 people are take risk for them
cant say.
15 of the customers feels slow operations, inaccessibility to the service centre and
fund transfer facility and 7 very few customers are dissatisfied for their delayed
correspondence.
The brokerage charges are highly Dissatisfied by 15 of the customers, 7 says
dissatisfied, 9 are moderate and 12 are satisfied. Only 7 of the customers say
highly satisfied so almost 70% of them are Highly Dissatisfied with the brokerage
charge.
40 of the customers are satisfied with the BTST provided by the company; only
few customers that are 10 are not satisfied and said no.
AMCs absence in the company is aware to all 50 of the customers and not
aware that is 0.
Companys TRADE TIGER software used for online transaction is aware to 47 of
the customers and only few, 3 are not aware.

SUGGESTIONS
From the analysis of the survey and personal observation of the customer towards
the awareness of the share and the share company SHAREKHAN. Lots of experience
gained from the survey. This will help the company to survive in the market and also
improvise their market potential in the current competitive environment. With this the
company should take immediate steps to improve the nature of the business.
From the survey: Try to encourage people who come between the age group of 30 40. They are
very less in number.
Most of the customers got information about the company only through the
Friends. The company should take necessary steps to concentrate on the
advertisements. Through they are advertising online, it is necessary to advertise in
TV, radio, presses; only when they give these kinds of advertisements they can get
lots of customers. Also they have to go for boarding, which can be viewed by
everyone passing by.
It was found that maximum no of customer is investing in shares after a time gap
of 3 months. The company should explain the benefits of intraday (buy today and
sell today) operations certain customers invest in shares with a long term on
capital apperceptions. The benefits of short term trading can be explained to the
customers so that they may be persuaded to go in for the same.
There is an unfavorable feedback from the customers about brokerage charges as
per transactions. . The company should take necessary steps to concentrate on the
Brokerage charges according to competitors.

Many of the customers are not aware of my broker software. This usefulness
should be explained to them.
Customers with money to invest may be living in isolated areas with no proper
telephone or computer facility, the company may think of deputing relationship
managers to help the customers through proper guidance and by passing on
relevant information.
More number of customers is dissatisfied with slow operation and delay operation
of transaction, so it is advisable to take some steps for that.

CONCLUSION

A MUTUAL FUND brings together a group of people and invests their money in
stocks, bonds, and other securities.

The
advantages
of
mutuals
are
professional
management, diversification, economies of scale, simplicity and liquidity.

The disadvantages of mutuals are high costs, over-diversification, possible tax

consequences, and the inability of management to guarantee a superior return.

There are many, many types of mutual funds. You can classify funds based on
asset class, investing strategy, region, etc.

Mutual funds have lots of costs.

Costs can be broken down into ongoing fees (represented by the expense ratio)
and transaction fees (loads).

The biggest problems with mutual funds are their costs and fees.

Mutual funds are easy to buy and sell. You can either buy them directly from the
fund company or through a third party.

Mutual

fund

ads

can

BIBILIOGRAPHY
www.sharekhan.com
www.economictimes.com
www.moneycontrol.com

be

very

deceiving.

www.bseindia.com
www.nseindia.com
www.sebi.gov.in
www.investors.com
www.investopedia.com
www.mutualfundindia.com
www.valueresearchonline.com

www.amfiindia.com
www.fundsindia.com
www.morningstar.in
www.moneycontrol.com/mutualfundindia/

Previous project reports

News Papers
Sharekhans brochures
Sharekhans value Guide