Chapter 1:

Introduction:

a)

OVERVIEW

A brokerage firm, or simply brokerage, is a financial institution that facilitates the

buying and selling of financial securities between a buyer and a seller. Brokerage firms
serve a clientele of investors who trade public stocks and other securities, usually through
the firm's agent stockbrokers. A traditional, or "full service," brokerage firm usually
undertakes more than simply carrying out a stock or bond trade. The staff of this type of
brokerage firm is entrusted with the responsibility of researching the markets to provide
appropriate recommendations, and in doing so they direct the actions of pension fund
managers and portfolio managers alike. These firms also offer margin loans for certain
approved clients to purchase investments on credit, subject to agreed terms and
conditions. Traditional brokerage firms have also become a source of up-to-date stock
prices and quotes.

Discount Brokers
A discount broker or an online broker is a firm that charges a relatively
small commission by having its clients perform trades via automated, computerized
trading systems rather than by having an actual stockbroker assist with the trade. Most
traditional brokerage firms offer discount options and compete heavily for client volume
due to a shift towards this method of trading.
Other ways to lower costs for these brokers is by executing orders only a few times a day
by aggregating orders from a large number of small investors into one or more block
trades which are made at certain specific times during the day. They help lower costs in
two ways:

By matching buy and sell orders within the firm's order book, the overall quantity
of stock to be traded can be reduced, thus reducing commissions payable to others by
the brokerage firm.

The broker can split the bid-ask spread with the investor when matching buy and
sell orders - a win-win situation in most cases

Since investor money is pooled before stocks are bought or sold, it enables investors to
contribute small amounts of cash with which fractional shares of specific stocks can be
purchased. This is usually not possible with a regular stockbroker.

Distributor
Many broker-dealers also serve primarily as distributors for mutual fund shares. These
broker-dealers may be compensated in numerous ways and, like all broker-dealers, are
subject to compliance with requirements of the Securities and Exchange Commission and
one or more self-regulatory organizations, such as the Financial Industry Regulatory
Authority (FINRA). The forms of compensation may be sales loads from investors, or
Rule 12b-1 fees or servicing fees paid by the mutual funds.

List of Top Brokerage Firms in India

Here are the top brokerage companies in India:I)

Indiabulls Securities

Indiabulls Securities is the leading brokerage firm in India, which started functioning in
the year 2000. The company's businesses include real estates, home loans, power,
securities and IT. Indiabulls securities is headquartered in Gurgaon, Haryana and employs
3

over 4,000 people. Across the nation, Indiabulls securities operates through its 450
branches. The company provides its services both through off-line and on-line channels.
Indiabulls Securities boasts of running one of the most efficient and fastest trading base
in India. Rs. 1200 is the trade account opening fees at Indiabulls Securities.

II)

Sharekhan Limited

Sharekhan Limited was also established in 2000 and is one of the top brokerage firms in
India today. With its head office in Mumbai, Maharashtra, Sharekhan is present in around
450 cities in India and it is serving over 9,50,000 customers through its 429 outlets across
the country. Sharekhan has two branches in Oman and UAE as well. The services
provided by Sharekhan Ltd. include equities trade execution, portfolio management,
distribution of mutual funds and commodities, structured products and insurance. One
can open their trade account with Sharekhan Ltd. with Rs. 750 (Classic account) and Rs.
1000 (Trade Tiger).
III)

Angel Broking Limited

Angel Broking started its operations in 1987 and has its headquarters in Mumbai, the
commercial capital of India. Angel Broking is involved in the businesses such as equity
trading, portfolio management services, commodities, mutual funds, IPO, Life Insurance,
Investment Advisory and Depository Services. Angel Broking has more than 5,500
terminals in around 400 branches across India.
IV)

Reliance Money

Reliance Money is retail brokerage company and a subsidiary of the prestigious Reliance
Industries. It was founded in 1987 and is based in Mumbai, Maharashtra. On a
nationwide level, Reliance Money runs its business through 150 branches and around
2,000 employees. Reliance Money provides services related to mutual funds, fixed
income, gold, portfolio management services and structured products. Rs. 750 are
charged by Reliance Money to open a Demat or a trade account.

V)

Kotak Securities Limited

With its headquarters in Mumbai, Kotak Securities Limited started its operations in 1994.
It is subsidiary of Kotak Mahindra Bank. Over 5.58 lakh customers have an account with
Kotak Securities. It has 450 branches in around 352 cities in India. The service base of
Kotak Securities consists of stock broking, portfolio management services and other
customer oriented financial services.

VI)

India Infoline Services

Like most of the other brokerage firms, India Infoline Services has its headquarters in
Mumbai. It was started in 1995 and serves more than 2 million customers. The company
has around 650 locations in India and abroad. It is present in Sri Lanka, Mauritius,
Singapore, Hong Kong, Dubai, Switzerland, UK and USA. Rs. 750 is the amount
required to open a demat account with India Infoline Services.

VII)

HDFC Securities

HDFC Securities is based in Mumbai and over 1 million customers have an account with
it. The business services that HDFC Securities provides are mutual funds, equity, IPO,
national pension system, NRI offerings, insurance, fixed deposits, bonds and loans.
HDFC Securities has over 100 branches in India and has got over 1,500 employees
working for it.
VIII) ICICI Direct

ICICI Direct is a subsidiary of the leading private bank the ICICI Bank and is
headquartered in Mumbai, Maharashtra. It is involved in businesses such as equity,
mutual funds, ETF, life insurance, fixed deposit, bonds and loans. ICICI Direct has
around 300 branches across the country and over 2,000 employees. A trade account at the
ICICI Direct can be opened with a fees of Rs. 750.

IX)

Bajaj Capital

A relatively new player in the brokerage market, Bajaj Capital started in 2008 and is
based in Mumbai. It operated via 150 branches on pan India basis and a strong base of
around 2,500 employees. It serves its customers through services related to mutual funds,
fixed deposits, bonds, insurance, real estate and stocks.

X)

Aditya Birla Money

Aditya Birla Money is the brokerage arm of the Indian conglomerate the Aditya Birla
Group. It is headquartered in Mumbai, Maharashtra and has 150 branches across the
nation. The business solutions provided by Aditya Birla Money concern broking and
distribution, wealth management, corporate and treasury services, real estate advisory and
online money management. A total of 2,500 employees contribute to the operations of
Aditya Birla Money.

b) PROFILE OF THE ORGANIZATION

Name of the company: Sharekhan Ltd.

Year of establishment: 1925
Headquarters:
Opp.

LodhaiThink Techno Campus, 10th Floor, Beta Building, Off.JVLR,

Kanjurmarg Station,
Kanjurmarg (East), Mumbai - 400 042.
Services:Depositoryservices, Online services and Technical research
No. of employees:3500+
Website:http://www.sharekhan.com/
Slogan:Yourguide to the financial jungle

Sharekhan Ltd is Indias leading online retail broking house. Launched on 8th February
2000, as an online trading portal, it has today a pan India and international presence
(UAE & Oman) with over 1200 outlets serving 9,50,000 customers across 400 cities.
Sharekhan offers services like Portfolio Management, trade execution in equities, futures
& options, commodities and distribution of mutual funds, insurance and structured
products. These are backed by high quality investment advice from an experienced
research team at Sharekhan, which provides fundamental and technical research, market
related news, statistical information across equities, commodities, mutual funds, IPOs
and much more. Sharekhan is a member of the Bombay Stock Exchange, The National
Stock Exchange, and the countrys two leading commodity exchanges, the NCDEX and
MCX. Sharekhan is also registered as a Depository Participant with NSDL and CDSL.

Sharekhan is online stock trading company of SSKI Group, provider of India-based

investment banking and corporate finance service. Sharekhan is one of the largest stock

broking houses in the country. ShriShantilalKantilalIshwarlal Securities Limited (SSKI)

has been among Indias leading broking houses for more than a century.
Sharekhan Ltd is India's leading online retail broking house with its presence
through 1288'Share Shops' in 398 cities. It has a client base of 1.5 Corers. Launched on
8th February, 2000 as an online trading portal, Sharekhan offers its clients trade execution
facilities for cash as well as derivatives, on BSE and NSE, depository services,
mutual funds, initial public offerings (IPOs), and commodities trading facilities on
MCX and NCDEX. Besides high quality investment advice from an experienced
research team Sharekhan provides market related news, stock quotes fundamental
and statistical information across equity, mutual funds, IPOs and much more. Sharekhan
is also about focus. Sharekhan does not claim expertise in too many things. Sharekhans
expertise lies in stocks and that's what he talks about with authority. To sum up,
Sharekhan brings to you a user- friendly online trading facility, coupled with a wealth of
content that will help you stalk the right shares.

Experience
SSKI has more than eight decades of trust and credibility in the Indian stock market. In
the Asia Money broker's poll held recently, SSKI won the 'India's best broking house for
2004' award. Ever since it launched Sharekhan as its retail broking division in February
2000, it has been providing institutional-level research and broking services to individual
investors.

Technology
With their online trading account one can buy and sell shares in an instant from any PC
with an internet connection. Customers get access to the powerful online trading tools
that will help them to take complete control over their investment in shares.

Accessibility
Sharekhan provides services for investors. These services are accessible through many
centers across the country (Over 650 locations in 150 cities), over the Internet (through
the website www.sharekhan.com) as well as over the Voice Tool.

Knowledge
In a business where the right information at the right time can translate into direct profits,
investors get access to a wide range of information on the content-rich portal,
www.sharekhan.com. Investors will also get a useful set of knowledge-based tools that
will empower them to take informed decisions.
Convenience
One can call Sharekhans Dial-N-Trade number to get investment advice and execute
his/her transactions. They have a dedicated call-center to provide this service via a Toll
Free Number 1800-22-7500&39707500 from anywhere in India.
Customer Service
Customer service team assist their customer for any help that they need relating to
transactions, billing, demat and other queries. Their customer service can be contacted via
a toll-free number, email or live chat on www.sharekhan.com.
Investment Advice
Sharekhan has dedicated research teams of more than 30 people for fundamental and
technical research. Their analysts constantly track the pulse of the market and provide
timely investment advice to customer in the form of daily research emails, online chat,
printed reports etc

10

PRODUCTS & SERVICES

A Sharekhan outlet offers the following services:

Online BSE and NSE executions (through BOLT & NEAT terminals)

Free access to investment advice from Sharekhans Research team

Sharekhan Value Line (a monthly publication with reviews of recommendations,

stocks to watch out for etc)

Daily research reports and market review (High Noon & Eagle Eye)

Pre-market Report (Morning Cups)

Daily trading calls based on Technical Analysis

Cool trading products (Daring Derivatives and Market Strategy)

Personalized Advice

Live Market Information

Depository Services

Derivatives Trading (Futures and Options)

IPOs & Mutual Funds Distribution

Internet-based Online Trading: Speed Trade

TYPES OF PRODUCTS

11

Classic Account

Fast trade Account

Trade Tiger

1. Classic Account
The features about classic account are

It is basically used for beginners i.e. Fresher

Here the transactions can be done in BSE, NSE and F&O.

There is a market watch.

Here we can make four templates i.e. folders.

Here you can add minimum 20 scrips and maximum 100 scrips.
Top gainers, Top losers, Top traded equities and Top traded funds are the

special links available in this.

It gives maximum access.
You can keep lump sum amount in the account.
There is a link which is- whats in, whats out
A system required is Windows XP, 2000, IE 6.0.

12

13

2. Fast trade Account

The features about fast trade account are

We can make up to five templates.

You can monitor up to125 companies.
Systems required here are Windows XP, 2000, IE 6.0 and Java.
You can also buy Mutual funds and IPO online.
You can also monitor circuits.
You can see the market depth i.e. the logic of demand and supply. It will help

to decide whether to buy or not.

It can also add trigger as in it works as a reminder.
This online trading platform is an applet- based application that provides live
streaming quotes from BSE and NSE.

Get live market prices and market statistics like best bid price, quantity, best offer price
and quantity etc. for chosen stocks.

14

15

3. Trade Tiger

Trade Tiger is an application that brings you the power of a brokers terminal, right from
your desktop.

16

4.

Trade on multiple exchanges {NSE, BSE, MCX, NCDEX} from a single

screen.
Customize market watches by scripts or sectors and view them on a single

screen.
Get access to technical tools and trade like a pro.

Invest Tiger
This account allows you to trade through website and is suitable for retail

investors.
Online trading website also comes with a Dial-n-Trade service that enables to
buy and sell shares by calling dedicated toll-free number 1-800-22-7050.

Tie ups with Banks

Sharekhan has tied up with ten banks to facilitate the transfer of money from saving
account to Dmat account and vice versa, .and by only these banks one can transfer the
money by e-banking .
AXIS Bank
Bank of India
Citi Bank
HDFC
ICICI Bank
IDBI Bank
IndusInd Bank
Oriental Bank of Commerce {OBC}
Union Bank of India
Yes Bank

17

TYPES OF PLANS

Advance

Brokerage

Brokerage -Delivery

Brokerage
-Intraday
750
10 paise
50paise/50paise
1000
9 paise
45paise/45paise
2000
7 paise
40paise/40paise
6000
5 paise
25paise/25paise
10000
4 paise
22paise/22paise
18000
4 paise
20paise/20paise
30000
3 paise
18paise/18paise
60000
2 paise
15paise/15paise
100000
1.5paise
10paise/10paise
EXPOSURE
In Sharekhan one can get 4 times exposure on cash and on assets one can gets 2

times.
Sharekhan gives money only for A group and B group companies.
Only Blue-chip companies get exposure and not for x group companies.

NOTES
In Sharekhan account opening is free.
First years maintenance charge is zero.
Second years maintenance is Rs 300.

c) SWOT ANALYSIS OF THE ORGANIZATION

STRENGTHS:
1. Pioneer in online trading with 1800 offices which includes branches & franchises
in over 550 cities across India.
2. 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.
18

3. SSKI, the parent company of Sharekhan has more than 8 decades of trust and
credibility in the Indian stock market.
4. Sharekhan provides multi-channel access to all its customers through a strong
online presence with www.sharekhan.com, 250 share shops on 130 cities and a
call center based Dial-n-trade facility.

WEAKNESSES:
1. Localized presence due to insufficient investments for country wide expansion.
2. Lesser emphasis on customer retention.
3. Lack of awareness among customers because of non-aggressive promotional
strategies (print media, Newspapers. Etc.)
4. No access to the rural market, and focuses more on HNIs than retail investors
which results in meager market share as compared to close competitors.

OPPURTUNITIES:
1. Sharekhan has a good customer relation strategy,which helps itcreates good
opportunities to increase goodwill and capture the market.
2. Growing Initial Public Offers(IPOs) creates opportunities to capture the new
market.

19

3. Positive outlook of people towards financial product, because most of the

investors nowadays know more about financial instruments and working strategy
of stock brokers.
4. As interest on fixed deposits are at an all time low, more and more small
investors are entering into the stock market.

THREATS:
1. Aggressive promotional strategies by close competitors may hamper Sharekhans
acceptance of new clients.
2. Lack of sufficient branch offices for speedy delivery of services.
3. Other players are providing margin funds to investors on easy terms whereas there
is no such facility in Sharekhan.
4. More and more players are venturing into this domain which can further reduce
the earnings of Sharekhan.

d) COMPETITION INFORMATION

I)

HDFC Securities

Company Background

20

HDFC securities Limited is a financial services intermediary and a subsidiary of HDFC

Bank, a private sector bank in India. It is one of the leading stock broking companies in
India and have completed 15 years in operation. HDFC Securities was founded in the
year 2000 and is headquartered in Mumbai with branches across major cities and towns
in India.
HDFC securities Limited is a financial services intermediary and a subsidiary of HDFC
Bank, a private sector bank in India. It is one of the leading stock broking companies in
India and have completed 15 years in operation. HDFC Securities was founded in the
year 2000 and is headquartered in Mumbai with branches across major cities and towns
in India.
Pricing of HDFC
Trading Account Opening Fees

Rs 999

Trading Account AMC

Rs 0

Demat Account Opening Fees

Rs 0

Demat Account AMC

Rs 750

Equity Delivery Brokerage

0.50%

Equity Intraday Brokerage

0.50%

Equity Futures Brokerage

0.05%

Equity Options Brokerage

Rs.100

II)

Kotak Securities

21

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 Types

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 KotakFastLane / 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
Trading Account Opening Fees

Rs 750

22

Trading Account AMC

Rs 0

Demat Account Opening Fees

Rs 0

Demat Account AMC

Rs 600

Equity Delivery Brokerage

0.49%

Equity Intraday Brokerage

0.049%

Equity Futures Brokerage

0.049%

Equity Options Brokerage

Rs 300

III) Indiabulls:

Company Background
IndiaBulls 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, with 450 + RelationshipManagers who act as personal financial advisors.
Indiabulls Ventures (formerly Indiabulls Securities) is an Indian Capital Markets
company providing securities broking and advisory services. It provides services like
Securities Broking, Advisory, Depository and Equity Research services and offers
commodities trading through a separate company. These services are provided both
through on-line and off-line distribution channels. Its in-house trading platform is called
Power Indiabulls.

23

Online Account Type

Signature Account :Simple Account with focus on Equity Analysis. The equity

analysis is a paid service even for A/c holders

Power Indiabulls: Account with sophisticated trading tools, low commissions and
priority access to R.M

Trading Account Opening Fees

Trading Account AMC
Demat Account Opening Fees
Demat Account AMC
Equity Delivery Brokerage
Equity Intraday Brokerage
Equity Futures Brokerage
Equity Options Brokerage

Rs 750
Rs 0
Rs 0
Rs 450
0.3%
0.03%
0.03%
Rs100/Lot

IV) ICICIDirect

24

Company Background
Started ICICI Securities, a leading integrated financial services firm in India,
empowering 2.5 million Indians to seamlessly access the capital market through its award
winning portal, ICICIdirect.com. The platform not only offers convenient ways to invest
in Equity, Derivatives, Currency Futures, Mutual Funds but also other services Fixed
Deposits, Loans, Tax Services, New Pension Systems and Insurance are available. ICICI
Direct recognizes the need for financial literacy & education and has been using many
platforms to increase awareness in empowering its customers to take informed
investment decisions.

Account Types

ICICI Direct e-invest Account : Plain Vanilla Account with focus on 3 in 1 advantage.
Differentiated in services within the account
1.Cash on spot
2.MarginPlus

Premium Trading interface of ICICIDirect Link is given to DBC partners and HNIs
Account Opening :Rs 750
Schemes : For short periods Rs 750 is refundable against brokerage generated in a qtr.
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
Initial Margin : Nil
Brokerage : All brokerage is inclusive of stamp duty and exclusive of other taxes.

25

Pricing of ICICIDirect

Trading Account Opening Fees

Trading Account AMC
Demat Account Opening Fees
Demat Account AMC
Equity Delivery Brokerage
Equity Intraday Brokerage
Equity Futures Brokerage
Equity Options Brokerage

Rs 975
Rs 0
Rs 0
Rs 600
0.55%
0.275%
0.05% to 0.03%
Rs 95 to Rs 35 per lot

26

Chapter 2:
Objectives and Methodology

27

a) SIGNIFICANCE
This project represents information regarding various investment options
available in the market and awareness of Sharekhan as a financial service
provider.

The main objective of the project is to Find out investment

opportunities and trend of investment among working professionals, and to Study

what is risk and return combination and whether the general public is aware of the
various investment options available and the risk and return associated with
them.

b)OBJECTIVES
The objective of conducting this project exercise was to get useful insight about the
investment sector and to know about the preferences of the working professionals and
general public. I have prepared this report with some specific objectives, which are as
under:

To conduct a survey to find out about the awareness of investmentoptions;

To find out about the awareness among working professionals about

Sharekhan as a Financial Service provider;

To understand the trend of investment among the working professionals;
To learn the behavior of consumers in respect of the investment opportunities

available in stock market; &

To study the risk and return combination associated with the stock market and
whether the general public is aware about them.

c) SCOPE OF STUDY
The project is about consumer preferences regarding investment in various instruments,
and the level of awareness among the general public about it. This project helps us to
know about various investment opportunities available, and also which is the most
preferred one.
The research study will help in comparing the various instruments and services available,
and finding out what is peoples choice.

28

d) METHODOLOGY
Marketing research means the systematic gathering, recording, analyzing of data about
problems relating to the marketing of goods and services.

METHODOLOGY ADOPTED:
Research methodology is a way to systematically solve the research problem. Here we
study the various steps generally adopted by the researcher in studying the research
methods to continue a part of research methodology.
In this research, both Primary and Secondary data were taken into consideration. The
project would be executed through primary data i.e. questionnaires, discussion with
various age groups of employee, information from other group of companies, internet
datas.
Primary data: - This is those, which are collected as fresh and for the first time,
and thus happen to be original in character. There are many ways of data
collection of primary data like questionnaire, observation method, interview
method, through schedules, pantry Reports, distributors audit, consumer panel etc.
Secondary data: - These are those data, which are not collected fresh and are
used earlier also and thus they cannot be considered as original in character. There
are many ways of data collection of secondary data like publications of the state
and central govt., website, journals, companies reports, reports prepared by
researchers, reports of various associations connected with business, Industries,
banks etc. For this project secondary data was taken from companys reports and
websites.
RESEARCH DESIGN:
Type of research: Descriptive research design
Sources of data: Primary Data & Secondary Data
29

Primary Data Questionnaires

Secondary Data Websites
Data collection method: Survey Method,Questionnaire
Survey Instrument: Questionnaire
Method of communication: Collect the data through survey of the employees in the
organization
Sample size:100Respondents
Sample unit: Here the researcher has randomly selected the respondents of the NorthWest Delhi.
The sample that I have chosen include people who are working in the IT and software,
construction and real estate, companies giving a good salary package. These people are
always keen to invest at large extent.
For this research, target respondents were
-

IT & Software executives.

Professionals working in the organization.

General working class

The reason for selecting this sample was that these are the people who will consult the
organization for investments, as they are having the potential to invest huge amount of
money, and which need the proper guidance about the financial services in which they are
going to invest. Also, people either in government departments or having a decent salary
package were consulted to know about their investment pattern, and also as to what were
the financial instruments in which they invest.

30

Sampling Design: Convenient sampling (sample collection)

31

CHAPTER 3:
CONCEPTUAL DISCUSSION

32

INVESTMENT
To invest is to allocate money (or sometimes another resource, such as time) in the
expectation of some benefit in the future.
In finance, the expected future benefit from investment is a return. The return may consist
of capital gain and/or investment income, including dividends, interest, rental income etc.
Investment generally results in acquiring an asset, also called an investment. If the asset
is available at a price worth investing, it is normally expected either to generate income,
or to appreciate in value, so that it can be sold at a higher price (or both).
Investors generally expect higher returns from riskier investments. Financial assets range
from low-risk, low-return investments, such as high-grade government bonds, to those
with higher risk and higher expected commensurate reward, such as emerging
markets stock investments.
Investors, particularly novices, are often advised to adopt an investment
strategy and diversify their portfolio. Diversification has the statistical effect of reducing
overall risk.

Types of Investment:
A) Fixed Return options
B) Variable Return options
C) Conventional returns options

33

A) Fixed Return options:

i)
Post Office Monthly Income Scheme:

It is a six-year savings scheme offered by designated post offices. It offers

guaranteed monthly returns on deposits. The account can be opened singly or
jointly, with a minimum investment of Rs 1,500. The maximum is capped at Rs
4.5 lakh if the account is held singly, and, at Rs 9 lakh, if jointly. One can open
multiple accounts, but overall limits stay.

The premature closure is possible, but only after a year. Two per cent of the
deposit is charged as penalty for premature closure between the first and third
year of opening the account. Beyond the third year, a penalty of one per cent is
levied. In such cases, you will have to forfeit the bonus.

Annual returns of eight per cent are paid out monthly. Also, on maturity, you will
get a five per cent bonus on the deposit. After maturity, you can leave the amount
in the account for up to two years. It will earn interest in line with that offered by
a savings bank account.

There is no tax deducted at source and the interest earned as well as the bonus is
added to your income and taxed according to your slab.

Senior citizens and retirees who do not have a regular income stream should
invest, given the assured returns and sovereign backing of the government. Those
with a regular income inflow should, instead, invest in growth-oriented
instruments like mutual funds. Even if investing on the debt side, one can look at
instruments that work on the compounding principle.

34

ii)

Other Post Office Schemes:

a) National Saving Certificate:

National

Savings

Certificates,

popularly

known

as NSC,

is

an

Indian

Government Savings Bond, primarily used for small savings and income tax saving
investments in India. It is part of the postal savings system of Indian Postal Service (India
Post).
These can be purchased from any Post Office in India by an adult (either in his/her own
name or on behalf of a minor), a minor, a trust, and two adults jointly. These are issued
for five and ten year maturity and can be pledged to banks as collateral for availing loans.
The holder gets the tax benefit under Section 80C of Income Tax Act, 1961.
Other similar government savings schemes in India include: Public Provident
Fund (PPF), Post Office Fixed Deposit, Post Office Recurring Deposit, etc.

b) KisanVikasPatra:

KisanVikasPatra is a small savings instrument that will facilitate people to invest in a

long term savings plan. This scheme was originally introduced by the Government of
India in 1988 and was again reintroduced in 2014 with some changes. Even though this
scheme was popular, a Government Committee formed in 2011 suggested that KVP could
be misused for purposes like money laundering. In 2014, KisanVikasPatra was
relaunched with a number of changes including mandatory PAN Card proof for
investments over Rs.50,000 and income source proof for investments exceeding Rs.10
lakh. The main advantage of opening a KVP investment is the availability and ease of
process - the Small Savings Directorate offers KVP certificates in all Post Offices across
the country. Any resident Indian can invest in a KVP scheme and can obtain a certificate
either jointly, individually or in the name of a minor. The principal amount invested in

35

KVP will be doubled in a time of 8 years and 4 months or 100 months. The main target
audience for this scheme is people in semi-urban and rural areas where people easily fall
prey to Ponzi schemes.

With an effective interest rate of 8.7%, KisanVikasPatra is was becoming a popular

investment instrument given that it is of low-risk and also guarantees assured returns.
However the interest rates have been slashed to 7.8% in the 2016 Union Budget which
will have its effect in FY 2016-17.

c) Senior Citizens Savings Scheme:

The government has announced a new senior citizens saving scheme. It has been
launched only through designated post offices from 2 nd august 2004. It is for individuals
who have attained the age of 60 years, and who have retired under voluntary retirement
scheme on the date of opening of an account. The main features of the scheme are that it
carries an interest of 9 % p.a. (taxable) on the deposit. Deposit can be a minimum of Rs.
1000 and a maximum of Rs. 15 lakhs, to be held for a period of 5 years and extendable
for a further 3 years. It can be prematurely withdrawn after one year with some
deductions. Interest qualifies for deductions. A depositor may open the account in the
individual capacity or jointly with a spouse. Non resident Indian are not eligible to open
an account. This Scheme is most beneficial to Senior citizens and provides a high rate of
interest as compared to bank interest of 4.5- 4.75%. Although the interest on the deposit
is taxable, the deposits themselves are tax free. As the post office is a department of the
government of India, it is a safe investment. The principal amount is assured.

36

iii)

Public Provident Fund:

A minimum yearly deposit of Rs. 500 is required to open and maintain a PPF
account, and a maximum deposit of Rs.1.5 lakhs (as on Financial year 2015-2016)
can be made in a PPF account in any given financial year. The subscriber should
not deposit more than Rs.1.50 lac per annum as the excess amount will neither
earn any interest nor will be eligible for rebate under Income Tax Act. The amount
can be deposited in lump sum or in a maximum of 12 installments per year.

The government of India decides the rate of interest for PPF account. The current
interest rate effective from 1 April 2016 is 8.1% Per Annum' (compounded
annually) which was revised from 8.70% effective from 1 April 2013. Interest will
be paid on 31 March every year. Interest is calculated on the lowest balance
between the close of the fifth day and the last day of every month.

In a generalized view, if an individual deposits an amount of 1 lakh every year for

15 years without any exception, then he would receive a total sum of more than
30 lakh. This reflects the huge amount of benefit applicable on PPF account, for a
total investment of 15 lakh (1 lakh every year * 15 years) interest received is more
than 16 lakh, which is also in fact non-taxable.

iv)

Bank Fixed Deposits:

A fixed deposit (FD) is a financial instrument provided by banks which provides

investors with a higher rate of interest than a regular savings account, until the given
maturity date. It may or may not require the creation of a separate account. It is known as
a term deposit or time deposit in Canada, Australia, New Zealand, and the US, and as
a bond in the United Kingdom and India. They are considered to be very safe
investments. Term deposits in India and Pakistan is used to denote a larger class of
investments with varying levels of liquidity. The defining criteria for a fixed deposit is

37

that the money cannot be withdrawn from the FD as compared to a recurring deposit or
a demand deposit before maturity. Some banks may offer additional services to FD
holders such as loans against FD certificates at competitive interest rates. It's important to
note that banks may offer lesser interest rates under uncertain economic conditions. The
interest rate varies between 4 and 11 percent. The tenure of an FD can vary from 7, 15 or
45 days to 1.5 years and can be as high as 10 years. These investments are safer than Post
Office Schemes as they are covered by the Deposit Insurance and Credit Guarantee
Corporation (DICGC). However, DICGC guarantees amount up to 1,00,000 (about ) per
depositor per bank. They also offer income tax and wealth tax benefits.

v)

Government Bonds or Gilts:

A Government bond' is a bond issued by a national government, generally with a
promise to pay periodic interest payments and to repay the face value on the
maturity date. Government bonds are usually denominated in the country's
own currency. Another term similar to government bond is "sovereign bond".
Technically any bond issued by a sovereign entity is a sovereign bond but
sometimes the term is used to refer to bonds issued in a currency other than the
sovereign's currency. If a government or sovereign is close to default on its debt
the media often refer to this as a sovereign debt crisis.

vi)

RBI Taxable bonds:

These are 8% bonds which are taxable. The maturity period is after 6 years and
there is no upper limit to investment in these bonds. The interest accrued on these
bonds is taxable under income tax act.

vii)

Insurance:
There are several types of insurance policies available in the market today through
various players. Life Insurance Corporation (LIC) till recently held monopoly in

38

this market. Life insurance is the most sought option as it also offers tax benefits
for premier paid. Though insurance is expenditure, it is now an investment option.
viii)

Company Fixed Deposits:

Company fixed deposits was a highly popular investment vehicle in the past. In
todays changing scenario where the corporate world has access to cheaper funds
from sources all over the world, the rates of interest offered by good companies
make this a less attractive investment vehicle.
If company fixed deposits are unsecured deposits and if a accompany goes
insolvent; there is very little possibility of investor recovering his investments.

ix)

Infrastructure Bonds:
These are special bonds issued by institutions such as Industrial Finance
Corporation of India (IFCI), Infrastructure Development Finance Corporation
(IDFC) and any non-banking financial company, also called infrastructure finance
company by the Reserve Bank of India. In financial year 2010-11, the likes of
Larsen & Toubro (L&T), India Infrastructure Finance Company Limited (IIFCL),
Power Finance Corporation (PFC) and IDFC issued these in tranches. Next year,
these will be issued again.

B)

Variable Return Options:

i)

Mutual Funds:

A mutual fund is a professionally managed investment fund that pools money from
many investors to purchase securities. While there is no legal definition of the term
"mutual fund", it is most commonly applied to open-end investment companies, which
are collective investment vehicles that are regulated and sold to the general public on a
daily basis. They are sometimes referred to as "investment companies" or "registered
investment companies". Hedge funds are not mutual funds, primarily because they cannot
be sold to the general public. Once a small player in financial markets, due to their

39

meteoric growth in the late 1980s and early 1990s, mutual funds now play a large and
decisive role in the valuation of tradeable assets such as stocks and bonds.
ii)

Shares and Stock Market:

The Bombay Stock Exchange (BSE) and the National Stock Exchange of India Ltd
(NSE) are the two primary exchanges in India. In addition, there are 22 Regional Stock
Exchanges. However, the BSE and NSE have established themselves as the two leading
exchanges and account for about 80 per cent of the equity volume traded in India. The
NSE and BSE are equal in size in terms of daily traded volume. The average daily
turnover at the exchanges has increased from Rs 851 crore in 1997-98 to Rs 1,284 crore
in 1998-99 and further to Rs 2,273 crore in 1999-2000 (April - August 1999). NSE has
around 1500 shares listed with a total market capitalization of around Rs 9,21,500crore
(Rs 9215-bln). The BSE has over 6000 stocks listed and has a market capitalization of
around Rs 9,68,000crore (Rs 9680-bln). Most key stocks are traded on both the
exchanges and hence the investor could buy them on either exchange. Both exchanges
have a different settlement cycle, which allows investors to shift their positions on the
bourses. The primary index of BSE is BSE Sensex comprising 30 stocks. NSE has the
S&P NSE 50 Index (Nifty) which consists of fifty stocks. The BSE Sensex is the older
and more widely followed index. Both these indices are calculated on the basis of market
capitalization and contain the heavily traded shares from key sectors. The markets are
closed on Saturdays and Sundays. Both the exchanges have switched over from the open
outcry trading system to a fully automated computerized mode of trading known as
BOLT (BSE On Line Trading) and NEAT (National Exchange Automated Trading)
System. It facilitates more efficient processing, automatic order matching, faster
execution of trades and transparency. The scrips traded on the BSE have been classified
into 'A', 'B1', 'B2', 'C', 'F' and 'Z' groups. The 'A' group shares represent those, which are
in the carry forward system (Badla). The 'F' group represents the debt market (fixed
income securities) segment. The 'Z' group scrips are the blacklisted companies. The 'C'
group covers the odd lot securities in 'A', 'B1' & 'B2' groups and Rights renunciations.
The key regulator governing Stock Exchanges, Brokers, Depositories, Depository

40

participants, Mutual Funds, FIIs and other participants in Indian secondary and primary
market is the Securities and Exchange Board of India (SEBI) Ltd.

iii)

Private Placement Memorandum(PPM):

A private placement memorandum (PPM) is a legal document provided to prospective

investors when selling stock or another security in a business. It is sometimes referred to
as an offering memorandum or offering document. A PPM is used in private
transactions when the securities are not registered under applicable federal or state law,
but rather sold using one of the exemptions from registration. The PPM describes the
company selling the securities, the terms of the offering, and the risks of the investment,
amongst other things. The disclosures included in the PPM vary depending on which
exemption from registration is being used, the target investors, and the complexity of the
terms of the offering.
C)

Conventional options:

i)

Property:

Investment in real estate or property is a good long-term investment for well heeled
investors with a large amount of money. People used to purchase property and when they
realized that they are getting maximum return on their investment, they sell it off and
book the profit. In this type of investment there is no fix rate of return, and it depends on
the peoples foresight.

ii)

Gold and Silver:

In developing countries, people have often trusted gold as a better investment than stock
and bank deposits. Gold and silver have always been popular in India because historically
these acted as a good hedge against inflation .in the sense these metals have been more

41

attractive than bank deposits or gilt edged securities. In gold and silver there is also a
aesthetic appeal which attracts the people and they consider it as a value for money.
Buying gold and silver makes people feel secure because these are the scarcest and they
can cash it any time at higher price than their original buying price.

The Investment Options at a Glance

a)

FIXED RETURN OPTIONS

Option & Benefit

Safety

Liquidity

Return

Good

Good

Low

Moderate

Low

Moderate

Good

Moderate

High

Low

Moderate

Bank FDs (between 4.5 -5.5%) Deposits High

High

Low

Good

Low

Low

Moderate

High

Low

Low

recommended Low

Low

Low

Post Office MP (8%) 10% Bonus On High

Maturity
N.S.C. (8.16% compounded). Tax benefits, High
No TDS
KisanVikasPatra (8.4%) 8yrs. 7mths. Double High
Youre Money. No TDS. Loan Available
From Banks against KVP
Senior Citizen Saving Scheme (9%) High
Taxable
PPF (8%). Offers tax benefits

covered by DICGC up to Rs. 1 lakh.

Government Securities, Gilts (5-6%)

High

RBI Taxable Bonds (8%). The interest High

accrued is taxable
Insurance
Company

FD.

Not

42

investment option in todays environment

Infrastructure Bonds

High

Moderate

Moderate

b) VARIABLE RETURN OPTIONS

Option

Safety

Mutual Fund Debt, Income , High

Liquidity

Return

Varies

Low

Saving Funds
Mutual Fund Equity

Low

Low

High

Mutual Fund Balance Fund

Moderate

Good

Moderate

Share market

Low

Moderate

High

Properties market

Moderate

Low

Varies

43

CHAPTER 4:
DATA ANALYSIS

44

Q1) Are you aware about any of the following investment options?
a)
b)
c)
d)
e)
f)

Insurance
Mutual Funds
Bonds/FDs
Stock Broking
Tax Planning
Personal Portfolio Management

45

Awareness regarding investment options

Insurance

20%

Mutual Fund

34%

Bonds
3%
3%

23%

Stock Broking
PPM
Tax Planning

17%

The graph above shows that awareness about Tax Planning was the highest i.e. 34%.
After that 23% people were aware about Mutual funds then comes Insurance-20%.17%
of the people were aware about Bonds/F.D.s. The least awareness was found for Stock
broking And PPM i.e. 3% each.

Q2) Are you aware about stockbrokersas Financial Service providers?

a) Yes
b) No

46

Awareness about stockbrokers

25
Yes
No
75

Our sample size was 100, and it was found that only 75% were aware about
stockbrokers& 25% were not aware about them.

Q3) Are you aware about any of the following stock brokerage firms?
a)
b)
c)
d)

ICICIDirect
IndiaBulls
Sharekhan Private Ltd.
Others(please specify)

47

Awareness of financial consultancies

25

20

15

25

23
10

19

17

16

Among the Financial consultancies, the highest awareness was for Sharekhan-25%, and
then comes ICICIDirect at 23%.

Q4) From which of the following media did you came to know about the investment
options?
a)
b)
c)
d)

Magazines/Newspapers
Television Advertisements
Sales Executives
Hoardings
48

e) Friends
f) Others

Customer awareness from media

Magazines/Newspapers

2
26.41

Television Advertisements

37.32

Sales Executives
Hoardings

3.2

Friends

10.9

Others

20.17

In

respect

of

the

customer

awareness

about

investment

from

media,

Magazines/Newspaper was on the top most at 37%. For others, the percentage was for
Sales Exectuives-10%, for Hoardings-3.2%, T.V. advertisements-20.17%, friends-26.41%
and others-2%

Q5) Do you invest in financial instruments or services?

a) Yes
b) No

49

Interest In Investment

33.33
Yes
No
67.67

Out of sample unit of size 100, 67% of the people were interested in investment, and only
33% of the people show their disinterest in investment.

Q6) If yes, in which have you invested?

a) Insurance
b) Mutual Funds
c) Bonds/FDs
50

d) Stock Broking
e) Tax Planning
f) Personal Portfolio Management

Areas of investment

3%
30%

Insurance
27%

Mutual Funds
Bonds/FD's
Stock Broking

20%

8%
13%

Tax Planning
PPM

Out of sample unit of size 100, the percentage of people interested in different areas was
as follows:
Tax Planning-30%, Mutual Funds-20%, Insurance-27%,Bonds/F.D.s-13%,Stock
Broking-7% and for PPM only 3%

Q7) Whatis the reason behind not preferring to invest in stock market?
a) High risk

51

b) Lack of knowledge
c) Previously incurred losses
d) Lack of financial planning

Reason of unwillingness of the people in respect of investment in stock market

70%
60%

60%

50%
40%
30%
20%

19%

10%

16%
5%

0%

60% of the people dont prefer to invest in stock market because of the amount of risk
involved, whereas 19% dont invest due to lack of knowledge, 5% dont invest due to
previously incurred losses, and 16% dont invest due to lack of financial planning.

Q8)How much percentage do you invest/ would you like to invest from your annual
income?

52

a) Insurance

1)5-10%

2) 10-15%

3) 15-20%

b) Mutual Funds-

1) 5-10% 2) 10-15%

3) 15-20%

c) PPM

1) 5-10% 2) 10-15%

4) 20% and above

4) 20% and above

3) 15-20%

4) 20% and above

4) 20% and above

d) Bonds / F.Ds

1) 5-10% 2) 10-15%

3) 15-20%

e) Tax Funds

1) 5-10% 2) 10-15%

3) 15-20%

4) 20% and above

Investment pattern of the people from their annual income

100%
90%
80%
70%
60%
50%

#REF!

40%

15-20%

30%

10-15%

20%

20% & above

10%
0%

From the graph following we get the following data:

Financial Services

Annual Income
5-10%
10-15%
15-20%
20% & above
4
2
2
2
Insurance
Mutual Funds
10
5
5
5
PPM
5
5
0
0
Bonds/FDs
5
15
5
5
Tax Planning
5
10
5
5
Q9) What are your preferable periods of investment?
a) January March
b) April June
53

Total
10
25
10
30
25

c) July September
d) October-December

Preferable Period of Investment

90
80
70
60
50
40
30
20
10
0
Jan-Mar

Apr-June

July-Sep

Oct-Dec

From the survey we found that for most of the people preferable period of investment
was from Jan-Mar. The least preferable period was from Oct.-Dec.

Q10) Would you like to invest through consultancy?

a) Yes
b) No

54

Investment through consultancies

35%
Yes
65%

No

Out of the total sample unit of 100, 65% of the people said that they would like to invest
through consultancies while the rest 35% of the people showed their unwillingness
towards Investment.

55

Chapter 5:
Findings
and
Recommendations

56

FINDINGS
1. From the survey it was found that around 25% of the respondents are aware about
Sharekhan as a Financial Service Provider. Among the Financial consultancies, the
highest awareness was for Sharekhan, and then comes ICICIDirect, and about 23% of
the respondents are aware about it.
2. Among all the services, most of the people were aware about Tax Planning i.e.
34%and least awareness was for PPM and Stock Broking, around 3% each.
3. As far as the brand awareness is considered the Sharekhan tops the list so, the other
companies will have to put in extra efforts to increase their awareness, and also the
companies will have to take maximum efforts on building their marketing strategy.

4. The maximum respondents want to invest in tax planning and second preference for
the mutual fund.
5. Some of the general working class people dont want to invest in stock market. 60%
of the people dont prefer to invest in stock market because of the amount of risk
involved, whereas 19% dont invest due to lack of knowledge, 5% dont invest due to
previously incurred losses, and 16% dont invest due to lack of financial planning.
6. Most preferable period of investment is January to March in stock markets, as at this
time the markets are generally at lower level.Around 80% of the respondents
preferred to invest in the January to March period, whereas 15% of the respondents
preferred to invest in October to December period, the least preferable among the all.
7. Bonds and FDs seem to be the preferred choice for investment, since it offers assured
returns and a very low or negligible amount of risk. Stock markets, on the other hand
are preferred only by people who either have a lot of cash or have a risk appetite.
Out of sample unit of size 100, the percentage of people interested in different
areas was as follows:
Tax Planning-30%, Mutual Funds-20%, Insurance-27%,Bonds/F.D.s-13%,Stock
Broking-7% and for PPM only 3%
57

8. Media through which people became aware about various investment options
available is Newspapers or Magazines i.e. 37% respondents came to know about the
various investment options available through newspapers or magazines, followed by
word of mouth (through friends, family or colleagues; around 26.41%), and
advertisements (20.17%).
9. People unaware about stock markets yet having risk appetite prefer investing through
stock brokerage companies.
10. According to the respondents the quality of the service is very important. So the
company should project itself as a brand in the market that gives end user the best
quality of service with handy operations.
11. Organizations have to concentrate on direct marketing activities. The consultancies
should develop its long-term relationship with the customers.

RECOMMENDATIONS
Following are some of the recommendations:
1. Seminars should be held for providing information to prospective and present
customers so that they feel secure in investing their money in different financial
products.

58

For e.g.: If a customer has information on derivatives he may invest in derivatives but
then he should also be informed that the derivatives are highly risky segments.
2. Sales people of the consultancy should go for training schedules periodically so that
they should be aware of different financial products which the consultancy is
offering and its USP (Unique Selling Proposition).
3. Stock brokerage companies should focus on not just making new customers, but also
retaining them in order to increase their goodwill.
4. People need to educated about stock market, and common misconceptions or myths
must be eradicated.
5. Stock market has a capacity for offering high returns but at a high risk. So one should
invest accordingly.
6. People can go for tax planning as well as Bonds, FDs, Mutual funds or SIPs if they
want moderate to high return on investments.

CONCLUSIONS
Follwing are the conclusions that the researcher has found after the survey:
From the above analysis the researcher concludes that majority of the respondents
are interested in tax planning or investing Bonds or FDs.
Majority of respondentsrefrain from taking high risk; therefore try to avoid
investing in stock market. However the perception is slowly changing.

59

 As most of the executives who were taken as our sample unit were from middle class
or upper middle class, they have a decent amount of saving. So they are willing to
invest in different options only if they are aware about the product they are getting
into.
Thus, it is important for the company, to create awareness about its financial services
more effectively. It is also necessary for the company to become customer friendly,
to solve their query and to provide information as and when required.

BIBLIOGRAPHY
I)

BOOKS
1. Chandra, Prasanna, Investment Analysis and Portfolio Management, Fourth
Edition(2015), Mcgraw Hill Education, ISBN 978-1-25-90059
Page numbers- 2.2-2.19, 3.2-3.10
2. Kothari, C.R. and Gaurav Garg, Research Methodology Methods and
Techniques(2015), New Age International Publishers, ISBN 978-81-224-36235
Page numbers- 1-3, 9-17, 89-91, 107-108

60

II)

WEBSITES

Aponte, B. A. (n.d.). What Is a Private Placement Memorandum? | Nolo.com. Retrieved

October 12, 2016, from http://www.nolo.com/legal-encyclopedia/what-is-privateplacement-memorandum.html
Brokerage firm.(n.d.). Retrieved October 12, 2016, from
https://en.wikipedia.org/wiki/Brokerage_firm
Contact Information. (n.d.). Retrieved from
http://www.sharekhan.com/ContactUS/ContactUS.aspx
Fixed deposit.(n.d.). Retrieved October 12, 2016, from
https://en.wikipedia.org/wiki/Fixed_deposit
Government bond.(n.d.). Retrieved October 12, 2016, from
https://en.wikipedia.org/wiki/Government_bond
Gupte, M. (2011). What is a Post Office Monthly Income Scheme? Retrieved October 12,
2016, from http://www.business-standard.com/article/pf/what-is-a-post-office-monthlyincome-scheme-111063000013_1.html
Gupte, M. (2011). What are tax-saving infrastructure bonds ? Retrieved October 12,
2016, from http://www.business-standard.com/article/pf/what-are-tax-savinginfrastructure-bonds-111032900103_1.html
Indian Stock Market Overview.(n.d.). Retrieved October 12, 2016, from
http://content.icicidirect.com/newsitecontent/institute/equities/basics_on_stock_market_2
.html?height=450
Investment.(n.d.). Retrieved October 12, 2016, from
https://en.wikipedia.org/wiki/Investment
KisanVikasPatra. (n.d.). Retrieved October 12, 2016, from
https://www.bankbazaar.com/saving-schemes/kisan-vikas-patra.html

61

National Savings Certificates (India). (n.d.). Retrieved October 12, 2016, from
https://en.wikipedia.org/wiki/National_Savings_Certificates_(India)
Presentation on Sharekhan Ltd. (n.d.). Retrieved from
http://www.slideshare.net/SuhaibKhan2/presentation-on-sharekhan-ltd
Public Provident Fund (India).(n.d.). Retrieved October 12, 2016, from
https://en.wikipedia.org/wiki/Public_Provident_Fund_(India)
RBI Saving Bond.(n.d.). Retrieved October 12, 2016, from
http://www.financialgyaan.com/dictionary/rbi-saving-bond/
Top Brokerage Firms in India.(n.d.). Retrieved October 12, 2016, from
http://business.mapsofindia.com/india-company/top-10-brokerage-firms.html

QUESTIONNAIRE
Name:
Status:

Marital

Gender:

Occupation:

Age:

Company:

Mobile no:

Q1) Are you aware about any of the following investment options?
a) Insurance

62

b) Mutual Funds
c) Bonds/FDs
d) Stock Broking
e) Tax Planning
f) Personal Portfolio Management

Q2) Are you aware about stockbrokersasFinancial Services provider?

a) Yes
b) No

Q3) Are you aware about any of the following stockbrokerage firms?
a) ICICIDirect
b) IndiaBulls
c) Kotak Securities
d) HDFC Securities
e) Others(please specify)

-----------------------------------------------------------------------------------------------------------

63

Q4) From which of the following Media did you came to know about the investment
options?
a) Magazines/Newspapers
b) Television Advertisements
c) Sales Executives
d) Hoardings
e) Friends
f) Others
------------------------------------------------------------------------------------------------------

Q5) Do you invest in financial instruments or services?

a) Yes
b) No
Q6) If yes, in which have you invested?
a) Insurance
b) Mutual Funds
c) Bonds/FDs
d) Stock Broking
e) Tax Planning
f) Personal Portfolio Management

Q7) Whatis the reason behind not preferring to invest in stock market?
a) High risk

64

b) Lack of knowledge
c) Previously incurred loss
d) Lack of financial planning
e) Any other reason

-----------------------------------------------------------------------------------------------------------

Q8)How much percentage do you invest/ would you like to invest from your annual
income?
a) Insurance

1)5-10%

2) 10-15%

3) 15-20%

4) 20% and above

b) Mutual Funds-

1) 5-10% 2) 10-15%

3) 15-20%

4) 20% and above

c) PPM

1) 5-10% 2) 10-15%

3) 15-20%

4) 20% and above

d) Bonds / F.Ds

1) 5-10% 2) 10-15%

3) 15-20%

4) 20% and above

e) Tax Funds

1) 5-10% 2) 10-15%

3) 15-20%

4) 20% and above

Q9) What are your preferable periods for investment?

a) January March
b) April June
c) July September
d) October-December

Q10) Would you like to invest through consultancy?

a) Yes
b) No

65

66