Jay Suhas Chaugaonkar

A Summer Internship Project Report on
Study for QGLP of Portfolio Management Services of Motilal Oswal

Financial Services Ltd.
Submitted in partial fulfillment of the requirement for the degree of

Master of Business Administration
(Affiliated to Savitribai Phule Pune University)
By
Jay Suhas Chaugaonkar
Roll No.D2-F04
Under the guidance of

Prof. Tanay Kurode
A study conducted for
Motilal Oswal Financial Services
At
Indira School of Business Studies

Tathawade, Pune – 411033
Department of Master of Business Administration
(2019-21)
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Acknowledgement
I would like to express profound gratitude to my guide Professor Tanay Kurode to
encourage me to the highest peak and to provide me the opportunity to prepare the project. For
his invaluable support, encouragement, supervision, and useful suggestions throughout this
project work. His moral support and continuous guidance enabled me to complete my work
successfully.
I am grateful to the cooperation from all the industrial experts who helped me during the
entire process, without their help, it would have never been possible to complete the research.
Last but not the least, I am thankful and indebted to all those who helped me like my mentor,
my all teachers directly, or indirectly in the completion of this project work.
Student Name: Jay Suhas Chaugaonkar
Roll No. / Batch: D1-F04/ (2019-21)
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Certificate from ISBS
Indira School of Business Studies, Pune

Summer Internship Project Certificate
Date: 15/04/2021
To Whomsoever It May Concern
This is to certify that Mr. Jay Chaugaonkar is a bonafide student of this Institute and has successfully completed his
project entitled Study for QGLP of MOFS Motilal Oswal Financial Services Limited for partial fulfillment of the course
Master of Business Administration (Finance), affiliated to Savitribai Phule Pune University from Indira School of
Business Studies, Pune.
Dr. Renu Bhargava Prof. Tanay Kurode

Director, ISBS Internal Guide
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Certificate from the Company
iii
Executive Summary
Investment is very important in human life without investment or without managing our money
we are not achieving our financial goal. I think investing is both Arts and science. Every
individual has their own specific financial needs and expectation based on their risk-taking
capabilities, whereas some needs and expectations are universal. We know the stock market and
all financial product is changing day by day hours by hours and minute by minute. Now a day’s
investment has become a very important part of income savings.
To keep the investor’s age from market fluctuation and make them profitable, Portfolio
Management Services (PMS) is fast gaining investment options for the high net worth
individuals. There is growing competition between brokerage firms in post-reform India. For an
investor, it is always difficult to decide which brokerage a firm to choose.
The research design is descriptive in nature. A questionnaire was prepared and distributed to
earing individuals, Individuals like a Businessman, Government employees, Privet companies
employees, etc. I try to check the awareness about investment services like PMS, Mutual Fund,
Management of Equity, etc. The sample consists of 50 individuals. The target individuals are
good earners from the business, job, etc.
To identify the effectiveness of Motilal Oswal financial services (PMS) QGLP Strategy or
mantra this research is carried throughout the area of Dhule. At the time of investing money,
everyone looks for the Risk factors involved in the investment option. This research is done
through different Research methodologies the data is collected from both the source Primary
sources which consist of the questionnaire and secondary data is collected from different sources
such as company website, Magazine, and other sources.
In this project, I have shown the details of PMS as well as a comparison of various PMS services
to understand the good PMS Service. I give the total questionnaire analysis in the project.
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Index / Table of Contents
Sr. No. Contents Pg. No.
1 Introduction 1-3
2 Sector Analysis 4-18
3 Company Analysis 19-37
4 News Analysis (w.r.t selected sector & 38-40
company)
5 Review of Literature/ Theoretical 41-44
Background
6 Objectives 45-46
7 Research Methodology 47-49
8 Data Analysis/ Data visualization, 50-66
Results and Interpretation
9 Conclusions / Learnings from the 67-69
Project
10 Limitations of the project 70-71
11 Recommendations 72-73
12 -Bibliography 74-75
-Appendices
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List of Tables
Serial No. Page No.
Top 7 Best Performing Banking & Financial 11
Services Funds 2020
Organization Chart of Motilal Oswal AMC 22
Current liabilities and Current Assets 24
Quick ratio and current ratio 25
Net working capital an sales ratio and total 26
revenue
Profit before tax and profit and loss of the 27
period
Competitors Ranking 30
Charges Of PMS 55
Comparison of PMS in Multi Cap 56-57
Comparison of PMS in Small Cap 58-59
Comparison of PMS in Large Cap 60-61
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List of Figures
Serial No. Page No.
Regulatory bodies in the sector and their role 15-16
Different Departments 21
Values and Core Purpose 22
Revenue Trend, Profitability Trend and 38
Growth Trend
Product Profile of the Organization 30
SWOT Analysis 31
QGLP Image 51
Questionnaire analysis figures 62-66
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Abbreviations
PMS Portfolio Management Services
MF Mutual Fund
Eq Equity
AMC Asset Management Company
QGLP Q - Quality, G – Growth, L – Longevity, P –
Price
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Chapter 1: Introduction
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1. Introduction
1.1 What is the project?
The Project contains details of a well-known Financial Services company i.e. Motilal Oswal
Financial Services Privet Limited. It includes complete sector details and details of the
company. It is important to study the sector and the company before facing the interview
with that company. Motilal Oswal Financial Services Limited provides various diversified
financial services in India. It offers a range of financial products and services, such as wealth
management, retail broking and distribution, institutional broking, asset management,
commodity broking, private equity, investment banking, and principal strategies. The
company engages in broking and distributing equities and
derivatives, commodities, depository services, portfolio management services, mutual
funds, etc. The MOFSL Company is one of the good financial services provider Company.
The Company is acknowledged as one of India's most valuable financial services business
with a market capitalization of nearly ₹ 7,739.68 Cr. The project is related to the MOFSL
Mantra of wealth creation that is QGLP in my project I have studied how the QGLP process
help to create a good portfolio.
1.2 Definition of concept:
To understand the Financial Services sector and to study Motilal Oswal Financial Services
Limited in detail. Also, understand the Motilal Oswal QGLP Mantra/ Strategy related to the
Portfolio Management Services. This Strategy is not only related to the PMS but also related
to the Stocks and Mutual funds.
1.3 Purpose & Objectives of the project:
Purpose:
• To study of the MOFS’S financial products.

• To study the financial Sector and also study the government initiatives.
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1.4 Scope of the project:
➢ In this project, I am focusing on the QGLP MOFS Mantra/Strategy and how this strategy
affects the portfolio, Mutual Funds, and Stocks.
➢ In the current complex financial environment, investors have unique needs that are derived
from their risk appetite and financial goals. But the investor’s point of view is different
every investor seeks to maximize his returns on investments without capital erosion. PMS
recognizes this and manages the investments professionally to achieve client’s or investor’s
objectives or goals.
➢ It offers professional management of equity investment of the investors with an aim to

deliver consistent returns with an eye on risk.
➢ To lookout for new prospective customers who are willing to invest in PMS.
➢ Identify the key Stocks in each portfolio using the QGLP Mantra / Strategy. This mantra /
Strategy is very effective to select or identify the stocks.
1.5 Salient Contributions to the project:
➢ Provided service as an intern for 75 days.
➢ Helped clients to give suggestions related to stocks and observes the client’s point of
view.
➢ To understand the importance of time to cash.
➢ To understand how stock market trend changes.
1.6 Outline of the project:
➢ The project was to observe the behavior of the clients about PMS services.
➢ The main work is to Study the QGLP Strategy / Mantra on the Stocks means analyses of
the stocks used this strategy.
➢ Collect the information on various PMS strategy and compare their returns.
➢ Calling the customers and give them information related to various financial products like
MF, Shares, Demat, PMS Etc.
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Chapter 2: Sector Analysis
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2. Sector Analysis
2.1 Overview and structure of sector:
India has a diversified financial sector undergoing rapid expansion, both in terms of the strong
growth of existing financial services firms and new entities entering the market. The sector
comprises commercial banks, insurance companies, non-banking financial companies, co-
operatives, pension funds, mutual funds, and other smaller financial entities. The banking
regulator has allowed new entities such as payments banks to be created recently thereby adding
to the types of entities operating in the sector. However, the financial sector in India is
predominantly a banking sector with commercial banks accounting for more than 64% of the
total assets held by the financial system. The country’s financial services sector consists of the
capital markets, the insurance sector and non-banking financial companies (NBFCs). India’s
gross national savings as a percentage of Gross Domestic Product (GDP) stood at 30.5% in
2019. India is one of the most vibrant global economies, on the back of robust banking and
insurance sectors. The relaxation of foreign investment rules has received a positive response
from the insurance sector, with many companies announcing plans to increase their stakes in
joint ventures with Indian companies. During the end of the second quarter, amid certain
defaults in the NBFC sector, a credit freeze was witnessed in the bond market especially for
NBFCs. The spread of 5-year AAA corporate bond yield over 5-year G-sec yield went up,
further the spread for NBFCs/HFCs was even higher with the availability of liquidity is limited.
As per Union Budget 2019-20, 100% foreign direct investment (FDI) will be permitted for
insurance intermediaries. The insurance sector will also be opened to 74% FDI from 49%. The
Government has approved 100% FDI for insurance intermediaries.
2.2 Porter’s 5 forces model
Porter's Five Forces Framework is a method for analyzing competition of a business. It draws
from industrial organization economics to derive five forces that determine the competitive
intensity and, therefore, the attractiveness of an industry in terms of its profitability. In financial
service sectors, Banks play a vital role rather than other financial institutions like NBFC, Privet
financial companies related to the stock market, etc.
Porter’s 5 forces model of Financial Service sector:
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• Threat of New Entrants: Financial and banking regulation requires the approval of the
regulator RBI and SEBI (Stock Market) before setting up a new bank or financial
institution so the threat of new Entrants is Low.
Factors Affecting New Entrants
1. Customer Preferences the biggest barrier of entry for the banking and financial
service industry is trust
2. Low Customer Reliability on New Banks and the new financial institution it is
nearly impossible for a new financial institution to enter the industry offering the
trust and full range of services as major banks and institutions.
3. The Rules and regulations of RBI and SEBI are very difficult. It is extremely
difficult for new entrants to complete these rules and regulations.
4. Another threat of new entrants like interest rate means if new entrants offering
very good financial services to the customers so they charge a high brokerage and
high-interest rate.
• The Bargaining power of supplier: In the BFSI Sector Capital is the primary resource
on any Financial Institution like the bank, NBFC and there are four major suppliers
(various other suppliers [like fees] contribute to a lesser degree) of capital in the
industry.
1. Customer deposits. 2. Mortgages and loans. 3. mortgage-backed securities. 4. Loans
from other financial institutions.
By utilizing these four major suppliers, the financial institution can be sure that they have
the necessary resources required to service their customers' borrowing needs while
maintaining enough capital to meet withdrawal expectations.
The power of the suppliers is largely based on the market, their power is often considered
to fluctuate between medium to high.
• The Bargaining power of buyers: In the BFSI Sector Bargaining power of buyers is
high because this sector provides homogenous kinds of services to the customers. To try
and convince customers to switch to their bank and financial services provider
institutions they will often times lower the price of switching, though most people still
prefer to stick with their current bank and financial services provider institutions.
The internet has greatly increased the power of the consumer in the finance industry. The
internet has greatly increased the ease and reduced the cost for consumers to compare the
prices of opening/holding accounts as well as the rates offered at various banks.
• The Threat of Substitute: Some of the Finance industry's largest threats of substitution
are not from a rival financial institution but from non-financial competitors.
The industry does not suffer any real threat of substitutes as far as deposits or
withdrawals, however, insurances, mutual funds, and fixed income securities are some of
the many banking services that are also offered by non-banking companies.
There is also the threat of payment method substitutes and loans are relatively high for
the industry. For example, big-name electronics, jewelers, car dealers, and more tend to
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offer preferred financing on "big ticket" items. Often times these non-banking companies
offer lower interest rates on payments then the consumer would otherwise get from a
traditional bank loan.
• Power of Competitive Rivalry: The Financial industry is considered highly competitive.

The financial services industry has been around for hundreds of years, and just about
everyone who needs banking services already has them. Because of this, banks and
financial institutes must attempt to lure clients away from competitor banks and financial
institutes. They do this by offering lower financing, higher rates, investment services, and
greater conveniences than their rivals. The banking competition is often a race to
determine which bank can offer both the best and fastest services but has caused banks to
experience a lower ROA (Return on Assets). Given the nature of the industry, it is more
likely to see further consolidation in the banking industry. Major banks tend to prefer to
acquire or merge with other banks than to spend money marketing and advertising.
2.3 Pestel analysis of financial industry / Capital Market
➢ POLITICAL:
The capital market in India is very vulnerable. India has been politically unstable in the
past but it is a little politically stable now a days. The political instability of the country
has a very strong impact on the capital market. The share market of India changes as the
political changes took place. The BSE Index, SENSEX goes up and down with any kind
of small and big political news, like, if there is news that a particular political party has
withdrawn its support from the ruling party, and then the capital market will go down
with a bang. The capital market of India is too weak and is based on speculations. The
political stability of the country is very important for the stability and growth of the
capital market in India. After the 2014 election BJP gives stable government without the
support of any other political party that’s the reason now in India the government is
stable and take a good decision to develop our economy.
➢ ECONOMIC:
The economic measures taken by the government of India has a very strong relationship
with the capital market. Whenever the annual budget is announced the capital market
goes up and down with the economic policies of the government. If the policies are
supportive to the companies then the capital market takes it positively and if there is any
other policy that is not supportive and it is not welcomed then the capital market goes
down. Like in the case of the government announce the 20 lack Cr. to boost our economy
in a pandemic is affect our stock market and some company’s stocks are high they
witnessed a sharp growth in their share values so the economic policies play a major part
in the growth and decline of the capital market.
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➢ SOCIO-CULTURAL:
India is a country of the unity of diversity. India is socially rich but the capital market is
not very attached to the social factors. Yes, there is some relation between the social
factors with the capital market. Social factors like the Education level of people
Education is one of the most important factors which influence the buying power of the
consumer, while selecting a particular financial product a consumer should know all its
features so it can differentiate them with other financial products.
➢ TECHNOLOGICAL:
The technological factors are affecting the stock market because of the various innovation
done in the past few years like in trading applications Zerodha, Upstox, Mpaisa these
applications used by various traders in daily trading in the stock market. Now this
COVID-19 issue this application used by many traders and also various meetings done on
the virtual platform this technological innovation are effect on the stock market finance
industry
➢ ENVIRONMENTAL:
Initially, environmental factors don’t play a vital role in the capital market. But time has
changed and people are more eco-friendly. This is really bothering them that if any firm
or industry is environment friendly or not. An increasing number of people, investors,
and corporate executives are paying importance to these facts, the capital market still sees
the environment as a liability. They belie that it is of no use for their strategy. The
environmental performance is even under-valued by the markets.
➢ LEGAL FACTORS:
Legal factors play an important role in the development and sustain the capital market.
Legal issues relating to any industry or firm decides the fate of the capital market. If the
govt. of India or the parliament introduces a new law that can affect the running of the
industry then the industry will be demotivated like the demonization decision taken by
the government its effect negative in the stock market and the market had crashed. Like
after the Hardhat Mehta scam, new rules and regulations were introduced like PAN card
was made necessary for trading, if any investor was investing too much money in a small
firm, then the investors questioned, etc. These regulations were meant to maintain
transparency in the capital market, but at that time, investment was discouraged. Legal
factors are necessary for the improvement and stability of the capital market.
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2.4 Market Size, How many Companies & Top Companies
• Market Size:
The Financial industry’s Assets under Management (AUM) have grown from Rs 10.96
trillion (US$ 156.82 billion) in October 2014 to Rs 28.18 trillion (US$ 403.32 billion) in
January 2020. Another crucial component of India’s financial industry is the insurance
industry. The insurance industry has been expanding at a fast pace. The total first-year
premium of life insurance companies reached Rs 214,673 crore (US$ 30.72 billion)
during FY19. Along with the secondary market, the market for Initial Public Offers
(IPOs) has also witnessed rapid expansion. In FY19, Rs 14,674 crore (US$ 2.10 billion)
has been raised from Initial Public Offerings (IPOs). Furthermore, India’s leading bourse
Bombay Stock Exchange (BSE) will set up a joint venture with Ebix Inc to build a robust
insurance distribution network in the country through a new distribution exchange
platform.
The Indian banking system consists of 18 public sector banks, 22 private sector banks, 46
foreign banks, 53 regional rural banks, 1,542 urban cooperative banks, and 94,384 rural
cooperative banks as of September 2019. During FY07–19, deposits grew at a CAGR of
11.11 percent and reached US$ 1.86 trillion by FY19. Deposits as of Feb 2020, stood at
Rs 132.35 lakh crore (US$ 1,893.77 billion). The total equity funding of the microfinance
sector grew at the rate of 42 year-on-year to Rs 14,206 crore (US$ 2.03 billion) in 2018-
19.
• Players in the financial services sector:

The financial system of a country has a great impact on the economy with financial
services companies responsible for robust economic growth. There has to be a direct link
between the regulatory institutions and the intermediary institutions while determining
the financial system of a country Financial services provided by finance companies
include insurance, housing financing, mutual funds, credit reporting, debt collection,
stockbroking, portfolio management, and investment advisory.
List of top financial services companies in India.
SBI Capital Markets Limited:

This happens to be the oldest organization in the sphere of capital markets in India.
Established in 1986 in the form of an ancillary of SBI, they have ranked second in Asia's
Project Advisory services. The company is a trailblazer in privatization and
securitization. The subsidiaries of SBI Capital Markets are SBICAPs Ventures Ltd.,
SBICAP Trustee Co.Ltd. And many others.
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Bajaj Capital Limited:
One of the major financial services companies in India, Bajaj Capital offers the best
investment advisory and financial planning services. The services are meted out to the
institutional investors, NRIs, corporate houses, individual investors, high network clients
as well.
Birla Global Finance Limited:

The subsidiary of Aditya Birla Nuvo Ltd., this company has operations in the corporate
finance and capital market arena. An alliance with Sun Life Financial of Canada, they
have given birth to Birla Sun Life Insurance Co Ltd., Birla Sun Life Distribution Co. and
alike.
Housing Development Finance Corporation:

A best financial solution for home loans, NRI loans, HDFC is the one-stop destination for
personal finance. With overseas branches in Singapore, Kuwait, Qatar, Saudi Arabia, and
many others, HDFC has been going great guns every year.
PNB Housing Finance Limited:

This Company offers premium solutions for relieving the borrower segment. The Home
Loan Life Insurance Plan of this has come in conjunction with TATA AIG, with the
lowest premium when compared to the peers.
ICICI Group:
Wide area of financial products and services, ICICI Group has solutions like
InstaBanking, Online Trading, Insta Insure, ICICI Bank imobile etc. Providing high-class
financial services in all segments of the society, ICICI Group deals with Mutual Fund,
Private Equity, Securities, and Life Insurance, etc.
LIC Finance Limited:

It is the biggest Housing Finance Company in India, providing finance to individuals for
repair or construction, or renovation of any old or new apartment or house.
L & T FinanceLimited:
Established in 1994 by the Larsen and Turbo group, this has become a significant name
in the financial sector. Funds for automobiles, Agricultural Instruments, secured loans;
they have all types of loans for a long tenure.
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Top 7 Best Performing Banking & Financial Services Funds 2020
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis.
as on 24 Jul 20.
2.5 Key trends and challenges of the sector:
Key trends
• Accelerating Focus on Digital Transformation:

The industry is witnessing a continued and aggressive focus on digitization and the
adoption of new, and emerging technologies to bring in operational efficiencies, enhance
speed-to-market and deliver superior customer experiences.
Banks are cutting down spends on branches to invest in self-service digital channels like
mobile and online banking become more popular among customers. Digital wearable
devices, which pack the power of smartphones, are making it increasingly feasible for
banks to offer targeted services to customers.
• The Emergence of FinTech Companies

Many banks are seeking to exploit the opportunities presented by digital, either by
leveraging the technologies in-house or by partnering with FinTech companies. Initially,
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these companies were seen as competitors taking advantage of the void that was created
by the BFS industry's inability to keep up with technological breakthroughs.
However, today, bank-FinTech partnerships are increasingly the norm, with the latter
providing marketing, administration, loan servicing or other services enabling banks to
offer tech-enabled banking products. Banks are also discovering some other advantages
of bank-FinTech partnerships, including access to assets and customers. As a result, these
partnerships are beginning to re-shape the financial services landscape.
• Building a Cognitive Side to the Business

While customer needs and competitive forces demand that banks adopt full-fledged
digitization, performance pressures compel lenders to reduce costs and keep operating
margins healthy. As new regulatory requirements and data protection laws put additional
strains on already-stretched resources, emerging technologies such as AI and robotics are
helping banks address these constraints efficiently. In fact, many pioneering companies in
the BFS industry are already experimenting with multiple use cases of AI in their
operations. From using AI to power chatbots and provide round-the-clock, agile customer
services, to utilizing the technology for critical functions such as anti-fraud and
regulatory compliance, banks are realizing the double benefits of optimizing costs while
improving operations. Additionally, technologies such as Robotic Process Automation
and machine-learning are helping banks replace labor-intensive, manual workflows with
highly reliable, cost-efficient, and fast robotic operations. These technologies are also
triggering innovations in the industry, such as biometric-based authentications, voice
commerce — the Robo advisors introduced earlier.5 Of course, the other part of this
equation is the impact on the industry's employees. While banks will need an increasing
number of people with techno-functional skillsets, they may see the redundancy in many
of their existing roles.
• Re-thinking the Concept of Money

Technologies such as blockchain are already heralding a quiet revolution, questioning the
conventional economic value offered by the BFS industry. Blockchain is shaking up the
very foundations of traditional business models with peer-to-peer lending, smart contracts
and digital payments, eliminating intermediaries and speeding up underlying processes.
Blockchain is expected to save as much as USD 20 Billion in annual operating costs for
the BFS industry, prompting an increasing number of banks to deploy the technology in
commercial production.
In addition to the blockchain, cryptocurrencies such as Bitcoin, Ethereal, and Ripple are
slowly gaining traction, questioning the need for physical cash itself.
• Transformation: Key to the Industry's Future
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While it is clear that increased use of technology is the way forward for banks, several
uncertainties about execution remain. To be most effective, banks and financial
institutions should re-define themselves as agile technology companies in the financial
services industry — not the other way around. This implies that BFS companies should
shed their non-core operations, retaining only those businesses that provide true
differentiation for customers. Banks will also need to examine the fundamentals
underpinning their core operations as customer preferences, demographics and lifestyles
change.
As banks continue to cope with the developments that have already made an impact, their
ability to transform themselves with speed and agility, and their future strategies to
survive the next revolution, will determine the winners and losers in this technologically
advanced future.
Challenges of the sector:
• Cybercrime in Finance:
Data breaches involving financial service firms increased by 480% from 2017 to 2019.
With each attack costing financial institutions millions, innovative solutions are needed if
we are to avoid a repeat of the lawless days of the Wild West. Whatever cybercrime
solutions emerge to protect financial services, blockchain technology must be the
foundation. Period. As more and more institutions adopt distributed ledger technology
(DLT), blockchain will become the de facto solution to keeping financial data secure
while at rest. Integrating DLT with existing financial infrastructures poses some serious
obstacles that must be overcome. Even so, we are past the point of asking whether
blockchain is the holy grail of financial data security.
• Regulatory Compliance in Finance:

The ever-changing regulatory environment poses a constant challenge for financial
institutions of all types. Regtech is an emerging industry that can help ease the burden of
compliance. By using the latest FinTech technologies to address regulatory compliance,
RegTech startups are bridging the gap between regulators and the financial service
industry. Automated reporting, automated audits, and process streamlining are only a few
of the benefits offered by RegTech applications.
• Big Data Use in Finance

Big data provides both opportunities and obstacles for financial service providers.
Tapping into social media, consumer databases, and even news feeds can help banks
better serve their customers, while better protecting their own interests. But sorting
through torrents of unstructured data for useful information is no small undertaking. It
requires powerful data analytics technology if institutions are to reap a benefit.
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Fortunately, data analytics solutions are emerging with the potential to transform asset
management, trading, risk management, and other financial services.
• AI Use in Finance
Industry experts believe that AI will transform nearly every aspect of the financial service
industry. Automated wealth management, customer verification, and open banking all
provide opportunities for AI solution providers. But that’s all been said before. So why
should we expect AI to keep that promise now? Powerful advances in deep learning
technology are paving the way for AI. In fact, if you have been alerted by your bank of
suspicious activity on your account, you have likely already benefited from AI. The
challenge that financial services face is learning how to benefit from the power of AI,
without being victimized by it. In R&D labs across the world, that question is being
pondered at this very moment.
• Customer Retention in the Financial Services Industry

Competition for financial service clients has never been fiercer. While brand loyalty may
not be dead, it is definitely on life support. What matters to most customers in 2019 is
greater personalization, more automated services, and easier access to services.
Institutions that can deliver all three will capture their share of the market. The key to not
losing the battle is recognizing that customers are less concerned with brand familiarity
than getting the services they want. Providing customers those services is key to client
retention.
• Employee Retention in the Financial Service Industry

Today’s financial service companies not only find it difficult to attract customers, but
they are also finding it difficult to attract employees. A lack of qualified talent to fill new
IT roles, and a millennial workforce that shuns long-term employment, are leading
factors in finding good help. Institutions that want to attract and retain a qualified
workforce must change their philosophy. No longer is it enough to offer good pay and
benefits; workers now expect employers to nurture a culture that is accommodating to the
values and lifestyles of the employee. Change is necessary if stable and qualified
workforces are to be achieved. But don’t expect it to come easy.
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2.6 Regulatory bodies in the sector and their role:
• RBI as an apex monetary institution:
Established in April 1935 in Calcutta, the Reserve Bank of India (RBI) later moved to
Mumbai in 1937. After its nationalization in 1949, RBI is presently owned by the Govt.
of India. It has 19 regional offices, majorly in state capitals, and 9 sub-offices. It is the
issuer of the Indian Rupee. RBI regulates the banking and financial system of the country
by issuing broad guidelines and instructions.
• Role of RBI
Control money supply.

Monitor key indicators like GDP and inflation.
Maintain people’s confidence in the banking and financial system by providing tools such
as ‘Ombudsman’. Formulate monetary policies such as inflation control, bank credit, and
interest rate control.
• SEBI as a regulatory body for the securities market:
Securities Exchange Board of India (SEBI) was established in 1988 but got legal status in
1992 to regulate the functions of the securities market to keep a check on malpractices
and protect the investors. Headquartered in Mumbai, SEBI has its regional offices in New
Delhi, Kolkata, Chennai, and Ahmedabad.
• Role of SEBI
Protect the interests of investors through proper education and guidance

Regulate and control the business on stock exchanges and other security markets
Stop fraud in capital market Audit the performance of stock market
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• Insurance Regulatory and Development Authority of India (IRDAI)
IRDAI is an autonomous apex statutory body for regulating and developing the insurance
industry in India. It was established in 1999 through an act passed by the Indian
Parliament. Headquartered in Hyderabad, Telangana, IRDA regulates and promotes
insurance business in India.
• Ensures and encourages the systematic growth of the insurance industry just to benefit
the common people who invest in policies to look for safety.
• Protects the interest of the policyholders so that they trust the system.
• Promote high standards of integrity and fair dealings in the market.
• Resolve disputes of all kinds and speed up claim settlement.
• Set standards and conduct vigilance to check for scams or frauds.
• The Indian economy is growing which further promotes the entrance of new insurance
players in the market. To keep the pace of growth even-handed, IRDA needs to maintain
standards of quality. It will further contribute to strengthening the financial capacity of a
country as a whole.
• Pension Fund Regulatory and Development Authority (PFRDA)
Established in October 2003 by the Government of India, PFRDA develops and regulates
the pension sector in India. The National Pension System (NPS) was launched in January
2004 to provide retirement income to all the citizens. The objective of NPS is to set up
pension reforms and inculcate the habit of saving for retirement amongst the citizens.
16
2.7 Government Initiatives:
➢ In November 2019, the government allocated Rs 10,000 crore to set up AIFs for the
revival of stalled housing projects.
➢ Under the Interest Subvention Scheme for MSMEs, Rs 350 crore (US$ 50.07 million) has
been allocated under Union Budget 2019-20 for 2 percent interest subvention for all GST
registered MSMEs, on fresh or incremental loans.
➢ In December 2018, the Securities and Exchange Board of India (SEBI) proposed direct
overseas listing of Indian companies and other regulatory changes.
➢ Bombay Stock Exchange (BSE) introduced weekly futures and options contracts on the
Sensex 50 index from October 26, 2018.
➢ In September 2018, SEBI asked for recommendations to strengthen rules which will
enhance the overall governance standards for issuers, intermediaries, or infrastructure
providers in the financial market.
➢ The Government of India launched India Post Payments Bank (IPPB), to provide every
district with one branch which will help increase rural penetration. As of August 2018,
two branches out of 650 branches are already operational.
2.7 Contribution to the economy, employment & Growth Rate:
➢ The Financial Service Sector It’s the most important sector of the Indian economy. India’s
gross national savings as a percentage of Gross Domestic Product (GDP) stood at 30.5%
in 2019. As of February 2020, the Assets under Management (AUM) of the mutual fund
industry stood at Rs 28.28 lakh crore (US$ 404.73 billion).
➢ Financial Sectors used new innovations like mobile Wallet, UPI (Unified Payments
Interface), etc. These innovations are affecting the economy in a positive way because these
systems people use for their normal life and daily transactions.
➢ According to the IBEF (Indian Brand Equity Foundation) Service sector is important
because this sector contributes a good percentage in our GDP.
➢ The growth of the financial sector in India at present is nearly 8.5 percent per year.
➢ The Employment rate in the financial sector is good because various people are work in
the financial service sectors in different levels like agents, managers, etc. in India 31.9%
of people is work in the Service sector in 2019.
17
2.8 Future and prospects post COVID-19:
➢ The Indian Financial industry witnessed unprecedented growth since the 2008 financial
crisis up until about a couple of months before the COVID-19 outbreak.
➢ A looming slowdown has now been exacerbated as the entire economy comes to a
screeching halt.
➢ The crisis, however, is also providing the BFSI space with an unparalleled opportunity to
bring about a fundamental change in the way that it functions. India is a cash-driven
economy that, despite large-scale measures such as demonetization, has not been
outgrowing its dependence on cash.
➢ This seems to be changing, as the viral nature of the novel coronavirus has made Indians
circumspect of cash.
➢ Doing so will pave the way for a stronger, more future-ready business ecosystem that is
built on the strong foundation of a tech-driven BFSI framework.
➢ The time is perfect for players in the BFSI space to reinvent themselves and test newer
business models that are more digitally-driven.
➢ By leveraging advanced technologies and digitizing their existing set of offerings, they can
supplant legacy processes with newer, more optimized workflows, and address
inefficiencies that have plagued the Indian BFSI space since time immemorial.
2.9 Key technological advancements in the sector:
Technology has indeed transformed banking but we still feel that there are a lot of areas
requiring intervention when it comes to offering convenient options for consumers. Today, if
you want to lodge a theft complaint or want to put up a service request, you will be made to
call the customer care service. The customer care service rather than helping you out with
your problem will keep you waiting for a long time, transferring your call from one
department to another. It is important to offer better and hassle-free customer service options
to consumers much prior to implementing world-class technologies. In the last few decades,
the banking sector in India realized the rising significance of digital technologies and the
urgent need to embrace the same for streamlining their services. The sector is making
considerable investments in a bid to create digital infrastructure so that it can offer better
solutions pertaining to mobile banking, e-wallets and virtual cards, etc. To name a few,
Digital-only/ Virtual Banking, Biometric Technology, Artificial Intelligence, Blockchain
Technology, Bitcoin, and Robotics are key innovations in the digital banking segment.
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Chapter 3: Company Analysis
19
Company Analysis
3.1 Brief of the company:
Motilal Oswal Financial Services Ltd. is an Indian diversified financial services firm offering a
range of financial products and services. The company was founded by Motilal
Oswal and Raamdeo Agarwal in 1987.
The company is listed on BSE and NSE stock exchanges.
The Chairman of the MOFS is Raamdeo Agrawal and the CEO of MOFS is Navin
Agrawal. The Headquarters of MOFS is in Mumbai Prabhadevi Motilal Oswal Tower.
Motilal Oswal has a wide network of branches, franchises, and sub-brokers across India.
With the presence at over 2200 locations in 500+ cities, MOSL has one of the largest
networks of branches.
Mr. Motilal Oswal and Mr. Raamdeo Agrawal initially conducted business as sub-brokers.
Around 1990 Mr. Motilal Oswal acquired membership of the BSE. Subsequently, VasantHolding
Private Limited (VHPL), a group company acquired the membership of the NSE in 1994. On
July 5, 1994, Deo Securities Private Limited was incorporated by Mr. Motilal Oswal and Mr.
Raamdeo Agrawal to carry on the business of stock broking and other financial services.
Motilal Oswal Financial Services Ltd (MOFSL) was founded in 1987 as a small sub-broking
unit, with just 2 people running the show. Focus on customer-first attitude, ethical and
transparent business practices, respect for professionalism, research based value investing, and
implementation of cutting-edge technology have enabled us to blossom into an over 6000
member team.
Today MOFS a well-diversified financial services firm offering a range of financial products and
services such as Private Wealth Management, Retail Broking and Distribution, Institutional
Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency
Broking, and Home Finance.
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MOFSS has a diversified client base that includes retail customers (including High Net worth
Individuals), mutual funds, foreign institutional investors, financial institutions, and corporate
clients. Company’s headquarters in Mumbai and as of March 2020, had a network spread over 550
cities and towns comprising 2500+ Business Locations operated by the company’s Business
Partners and 14,00,000+ customers.
Research is the solid foundation on which MOFSL advice is based. Almost 10% of revenue is
invested in equity research and we hire and train the best resources to become our advisors. At
present we have 25+ research analysts researching over 250 companies across 20 sectors. From a
fundamental, technical and derivatives research perspective, Motilal Oswals research reports have
received wide coverage in the media.
MOFS’ consistent efforts towards quality equity research have reflected in an increase in the
ratings and rankings across various categories in the Asia Money Brokers Poll over the years. We
have also been awarded the Best Performing Equity Broker (National) at the CNBC TV18
Financial Advisor Awards for five years in a row & got inducted in ‘Hall of Fame’ at the 10th
Financial Advisory Awards 2019.
Organization structure:
Different Departments
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Organization Chart of Motilal Oswal AMC
Name Designation
Mr. Navin Agrawal M.D. & CEO
Aashish Somaiyaa CEO - Asset Management Business
Motilal Oswal Chairman & M.D & CEO
Raamdeo Agrawal Joint Managing Director
Akhil Chaturvedi Associate Direcotr- Head-Sales & Distribution
Ms. Aparna Karmase Head - Compliance, Legal and Secretorial
Yatin Dolia Head – Operations and Finance
Ashish Agrawaal Vice President- Head Dealing
Gual Siddique Head- Risk Management and Internal Audit
Santosh Singh Head of Research
Ashok Jain Director
Abhaya Hota Director
Ms. Rekha Shah Director
Himanshu Vyapak Director
3.2 Vision, mission, values:
Values and Core Purpose
Our Core Purpose is complemented by our organizational values. Living these Values, We
believe, Helps us achive our core purpose.
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3.3 Market capitalization, key financial ratios, EPS, Turnover, Profit:
• Type of financial statements.
1. Standalone: Standalone financial statements show the financial position of the company
alone (and no other legal entity).
2. Consolidated: Consolidated financial statements show the financial position of the
company itself along with its subsidiary companies, associate companies and joint
ventures.
Note: In this report we would be laying emphasis on Standalone financial statement analysis.
This analysis and all calculation done on the 12-06-2020.
• Market capitalization:
The value of a company that is traded on the stock market, calculated by multiplying the
total number of shares by the present share price.
Market capitalization for MOFS = 7,841.61 Cr. The total Number of outstanding shares is
148066718.
• EPS (TTM):
A company's profits or earnings are divided by the total number of outstanding shares of
stock to calculate the Earnings per Share (ttm). Earnings per Share is usually abbreviated
as EPS and the “ttm” that follows stands for Trailing Twelve Months. This means that EPS
(ttm) is the total earnings or profits the company has made over the last 12 months. That
won’t necessarily coincide with the company’s fiscal year or the calendar year.
The EPS of motilal oswal is = 13.29
• P/E Ratio:
The price-earnings ratio (P/E ratio) is the ratio for valuing a company that measures its
current share price relative to its per-share earnings. The price-earnings ratio is also
sometimes known as the price multiple or the earnings multiple.
The P/E Ratio = Share Price/ Earnings per Share
= 549.65/13.29
= 41.35
= 14.26
• Average P/E Ratio for the Financial Services Industry:

P/E Ratio for MOFS in India is Greater than the average industry ratio. Difference of P/E
Ratio is 27.09 so MOFS is higher than Average P/E Ratio for the Financial Services
Industry it is a good sign for MOFS.
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• Current Liabilities:
The statement shows current liabilities from year March 2020, March 2019, March 2018,
March 2017 and March 2016. The composition of current liabilities in the Balance sheet
of last 5 years.
Current Liabilities Rs. In Cr.
Total current liabilities(2020) Rs 3288.58 cr
Note: The above total liability is excluding capital
• Current Assets:
Current assets the statement shows current assets from year March 2020, March 2019,
March 2018, March2017 and March2016. The composition of current assets in the
Balance sheet of last 5 years.
Current Assets Rs. In Cr.
Total current assets (2020) Rs 5824.37 cr
• Current ratio:
The current ratio is a liquidity ratio that measures a company's ability to pay short term
and long-term obligations. To gauge this ability, the current ratio considers the current
total assets of a company (both liquid and illiquid) relative to that company’s current total
liabilities. A ratio under 1 indicates that a company’s liabilities are greater than its assets
and suggests that the company in question would be unable to pay off its obligations if
24
they came due at that point. While a current ratio below 1 shows that the company is not
in good financial health, it does not necessarily mean that it will go bankrupt.
• The formula for calculating a company’s current ratio is:
• Current Ratio = Current Assets / Current Liabilities
Year Current Ratio
Current Ratio of MOFS 2020 1.77

• A good current ratio is Between 1.2 to 2, which means that the business has 2 times
more current assets than liabilities to covers its debts.
• In all the five years the current ratio of the MOFS is greater than 1 means its indicates
that business has 2 times more current assets than liabilities to covers its debts. The
current ratio of MOFS is Good.
• Quick Ratio/ Liquid Ratio:

This ratio establishes a relationship between quick assets and current liabilities. The
objective of computing this ratio is to measure the ability of the firm to meet its short
term obligations as and when due without relying upon the realization of stock. A quick
ratio of 1:1 is considered to be a satisfactory one.
Year Current Ratio
Quick Ratio of MOFS 2020 1.77

Quick Raito of MOFS 2019 3.55
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• Net Working Capital to sales Ratio:
It is the ratio of net working capital (CA-CL) to sales. It indicates a company’s liquid
assets (after meeting short term obligations) relatives to its need for liquidity (represented
by its sales). The sales of MOFS for years 2020, 2019, 2018, 2017 and 2016 amounted to
be 1269.49, 1217.27, 1355.30, 131.75 and 109.90.
• Net working capital to sales ratio = CA-CL/Sales
Year Current Ratio
Net working capital to sales Raito of MOFS 1.99

2020
Net working capital to sales Raito of MOFS 3.18
2019
Net working capital to sales Ratio of MOFS 2.62
2018
Net working capital to sales Ratio of MOFS 0.39
2017
Net working Capital Sales Ratio of MOFS 0.57
2016
• Total Revenue:
• The total revenue of MOFS (Include other Income). The below figures are from month of
March 2020, March 2019, March 2018, March 2017, March 2016.
Year Rs. (Crores)
Total Revenue of MOFS 2020 Rs 1306.39 Crores

• Profit before Tax:

• The difference between revenue and expenses gives us the profit before interest and tax.
The expenses for years 2020, 2019, 2018, 2017 and 2016 amounted to be 1112.29,
255.19, 853.15, 17.23 and 57.40.
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• Profit before tax = total revenue - expenses
Year Rs. (Crores)
Profit Before Tax of MOFS 2020 Rs 194.10 Crores

• Profit/ loss for period (after tax):
Year Rs. (Crores)
Profit of MOFS 2020 Rs 196.80 Crores

• Growth rate:
Growth rate can be calculated upon total revenue. By analysing all the data the growth
rate for Cummins India has been
Between 2019 and 2020 = total revenue (2020) –total revenue (2019)/ total revenue
(2019)*100
= 1306.39 - 1248.69 / 1248.69 *100
= 4.62%.
Similarly,
Between 2017 and 2018 the growth rate = 9.24%.
Between 2016 and 2017 the growth rate = 19.65%.
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28
3.4 Products and Services:
• Services:
• Motilal Oswal Securities Ltd
Motilal Oswal Securities Ltd (MOSL) is a part of Motilal Oswal Group, a diversified
financial service provider in India offering services including broking, loans, investment
banking, wealth management, life and general insurance, fixed income, IPOs, Mutual
fund, Bonds, NCDs etc. The group is spread wide and big with 2200 locations in 500
cities and 9 lk customers. Motilal Oswal Securities Ltd (MOSL) is a full-service broker
offering equity, derivatives, commodity and currency trading across BSE, NSE,
NCDEX, MCX and MSEI. Motilal Oswal Securities Ltd is also a distributor of Mutual
Fund, PMS&IPOs.PMS&Mutual Funds are offered through Motilal Oswal Asset
Management Company Ltd (MOAMC) which is Group Company of MOSL. Commodity
services are offered through Motilal Oswal Commodities Broker Pvt. Ltd Member of
MCX, NCDEX.
• Motilal Oswal Equity Trading

Motilal Oswal is a registered member of NSE and BSE, you can trade in Equity Cash and
Equity Derivatives with MO using online or offline (branch/subbrokers) network. Motilal
Oswal equity research team is there for you to give daily research reports, weekly
research reports, latest market updates and news and intraday stock tips.
• Motilal Oswal Commodity Services
Motilal Oswal provides commodity trading services through Motilal Oswal Commodities
Broker Pvt. Ltd, an associate company that is a trading member of MCX and NCDEX.
You can trade across Bullion, Metals, Energy, Agro and other commodities and also get a
leverage tool called Value Plus for intraday traders to get exposure of upto 3-4 times of
available funds. You also have access to latest the happenings from the commodity
markets across MCX & NCDEX with commodity news, advice, research, and the latest
prices.
• Motilal Oswal depository services (DP services)
Motilal Oswal is a depository participant (DP) of NSDL and CDSL. They offer a 2-in-1
account which includes an online trading account and a Demat account for secure and
hassle-free trading.
• Motilal Oswal Customer Service
Motilal Oswal offers online application (Will complete in 15 min), 100 % paperless
trading and Demat account opening process, a dedicated customer service team with a 6
hour query resolution TAT, a huge network of sub-brokers and branches, dedicated
Relationship Managers, and an advisory team at every branch for personal touch-base.
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Product Profile of the Organization
3.5 Competitiors Ranking
Sr.No Competitiors Name Clients Market

share %
1 ZERODHA BROKING LIMITED 1598948 14.28%
2 ICICI SECURITIES LIMITED 1081960 9.66%
3 HDFC SECURITIES LTD. 726197 6.48%
4 RKSV SECURITIES INDIA PRIVATE 675551 6.03%

LIMITED (Upstox)
5 ANGEL BROKING LIMITED 629260 5.62%
6 KOTAK SECURITIES LTD. 583482 5.21%
7 SHAREKHAN LTD. 547950 4.89%
8 5PAISA CAPITAL LIMITED 489661 4.37%
9 MOTILAL OSWAL FINANCIAL 385535 3.44%

SERVICES LIMITED
10 AXIS SECURITIES LIMITED 271990 2.43%
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3.6 Key Challenges of Motilal Oswal faced:
➢ In the current Covid-19 situation stock market is falling down so clients are scared.
This is a main challenge for the company how to convince clients your
money or investment is good don’t be scared.
➢ The second challenge faced by the company is a competition. Various broking firms
like Zerodha, Upstocks, 5paisa, etc these all broking firms are doing well than Motilal
Oswal.
➢ Now Motilal Oswal online trading app for shares, forex: MO Trader this is a good
app but the Zerodha app is better because clients or customers are used Zerodha app
rather than Motilal Oswal because the Zerodha app interface is very user friendly
rather than Motilal Oswal. So this is another challenge for Motilal Oswal to develop
their app.
➢ Another challenge for Motilal Oswal how to secure their client’s data because this is
the most important point is very important.
➢ Broking charges is another challenges in Motilal Oswal because the Zerodha and
other broking firm take lower charges.
3.6 SWOT Analysis:
31
➢ Strengths:
1. Diversified group: MOFS has strong and diverse businesses under its name which
boasts its total revenue and allows MOFS to innovate and explore other business
opportunities. MOFS has provided various types of services to clients like Motilal
Oswal Equity Trading, Motilal Oswal Commodity services, Motilal Oswal PMS, etc.
2. Brand: MOFS ranks top 10 in stock broking company and AMC of motilal oswal is
in the top 20. MOFS is a very big brand in financial services.
3. Innovation: MOFS has excellent research and development facilities provided to the
clients. Every year MOFS gives a Wealth Creation Study by Ramdev Agrawal
previous year this study is 24 wealth creation studies of MOFS.
4. Management: MOFS has strong and experienced management, strong brand presence
& excellent product advertising.
5. Products Range: Financial products and services such as Wealth Management,

Broking & Distribution, Commodity Broking, Portfolio Management Services,
Institutional Equities, Private Equity, Investment Banking Service.
➢ Weakness:
1. MOFS is less penetration in developing cities this is a weakness of motilal oswal

financial services.
2. MOFS does not focus on advertising that’s the reason the company does not create
awareness in the client’s mind.
3. The main weakness of MOFS is companies in high Debt.
4. The Company Annual Profit is declining for the last two years.
5. MOFS trading app does not perform like zerodha and upstox.
6. MOFS has a focus on the Distributors means increases the distributors in the rural
and urban area.
32
➢ Opportunities:
1. Rural Market: The Company has the opportunity to get into the untapped rural market.
2. Wealth Creation Study: This initiative by the group, with its enhanced Client
connectivity, has created a huge opportunity for the firm to create a good awareness in
other people.
3. MOFS has focused on earning urban young people looking for investment.
4. MOFS should tap on the increasing Investing power and improving the lifestyle of
customers in India. This could help in increasing revenue for all its businesses.
➢ Threats:
1. Aggressive practices adopted by competitors – impacting business growth and the

profit of the company.
2. Short term economic slowdown impacting investor sentiments and business activities
these activities and sentiments create a threats in the company growth.
3. The main threat is the entry of foreign financial firms in the Indian Market.
4. Government policies change any time so this creates a threat to the business and the
company does not focus on their work.
3.7 What is an AMC (Asset Management Company)?
An asset management company (AMC) is a firm that invests pooled funds from clients, putting
the capital to work through different investments including stocks, bonds, real estate, master
limited partnerships, and more. Along with high-net-worth individual portfolios, AMCs manage
hedge funds and pension plans, and to better serve smaller investors create pooled structures
such as mutual funds, index funds, or exchange-traded funds, which they can manage in a single
centralized portfolio.
• An asset management company (AMC) invests pooled funds from clients into a variety
of securities and assets.
• AMCs range from personal money managers, handling high-net-worth individual
accounts, to large investment companies sponsoring mutual funds.
• AMC managers are compensated via fees, usually a percentage of a client's assets under
management.
• Most AMCs are held to a fiduciary standard.
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Typically, AMCs are considered buy-side firms. This status means they help their clients buy
investments. They decide what to buy based on in-house research and data analytics, but they
also take public recommendations from sell-side firms. Sell-side firms such as investment banks
and stockbrokers, in contrast, sell investment services to AMCs and other investors. They
perform a great deal of market analysis, looking at trends and creating projections. Their
objective is to generate trade orders on which they can charge transaction fees or commissions.
3.7 What is Portfolio?
An investment portfolio is a set of financial assets owned by an investor that may include bonds,
stocks, currencies, cash and cash equivalents, and commodities. Further, it refers to a group of
investments that an investor uses in order to earn a profit while making sure that capital or assets
are preserved.
Types of Portfolios
Portfolios come in various types, according to their strategies for investment.
1. Growth portfolio
From the name itself, a growth portfolio aims to promote growth by taking greater risks,
including investing in growing industries. Portfolios focused on growth investments typically
offer both higher potential rewards and concurrent higher potential risk. Growth investing often
involves investments in younger companies that have more potential for growth as compared to
larger, well-established firms.
2. Income portfolio
Generally speaking, an income portfolio is more focused on securing regular income from
investments as opposed to focusing on potential capital gains. An example is buying stocks
based on the stock’s dividends rather than on a history of share price appreciation.
3. Value portfolio
For value portfolios, an investor takes advantage of buying cheap assets by valuation. They are
especially useful during difficult economic times when many businesses and investments
struggle to survive and stay afloat. Investors, then, search for companies with profit potential but
that are currently priced below what analysis deems their fair market value to be. In short, value
investing focuses on finding bargains in the market.
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3.9 What is Portfolio Management?
The art of selecting the right investment policy for the individuals in terms of minimum
risk and maximum return is called portfolio management. Portfolio management refers to
managing an individual’s investments in the form of bonds, shares, cash, mutual funds etc so that
he earns the maximum profits within the stipulated time frame. Portfolio management refers to
managing the money of an individual under the expert guidance of portfolio managers. In a
layman’s language, the art of managing an individual’s investment is called portfolio
management.
Need for Portfolio Management
• Portfolio management presents the best investment plan to the individuals as per
their income, budget, age and ability to undertake risks.
• Portfolio management minimizes the risks involved in investing and also increases
the chance of making profits.
• Portfolio managers understand the client’s financial needs and suggest the best and
unique investment policy for them with minimum risks involved.
• Portfolio management enables the portfolio managers to provide customized

investment solutions to clients as per their needs and requirements.
Types of Portfolio Management
Portfolio Management is further of the following types:
Active Portfolio Management: As the name suggests, in an active portfolio management

service, the portfolio managers are actively involved in buying and selling of securities to ensure
maximum profits to individuals.
Passive Portfolio Management: In passive portfolio management, the portfolio manager deals
with a fixed portfolio designed to match the current market scenario.
Discretionary Portfolio management services: In Discretionary portfolio management

services, an individual authorizes a portfolio manager to take care of his financial needs on his
behalf. The individual issues money to the portfolio manager who in turn takes care of all his
investment needs, paperwork, documentation, filing and so on. In discretionary portfolio
management, the portfolio manager has full rights to take decisions on his client’s behalf.
Non-Discretionary Portfolio management services: In non-discretionary portfolio

management services, the portfolio manager can merely advise the client what is good and bad
for him but the client reserves the full right to take his own decisions.
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Who is a Portfolio Manager?
An individual who understands the client’s financial needs and designs a suitable investment
plan as per his income and risk-taking abilities is called a portfolio manager. A portfolio manager
is one who invests on behalf of the client. A portfolio manager counsels the clients and advises
him the best possible investment plan which would guarantee maximum returns to the individual.
A portfolio manager must understand the client’s financial goals and objectives and offer a tailor
made investment solution to him. No two clients can have the same financial needs.
3.10 Motilal Oswal AMC
Motilal Oswal Asset Management Company (MOAMC) is one of India's fastest-growing asset
management companies.
• With a focus on equity investing and equity investment expertise inherited from over
30 years of capital markets experience of our sponsors Motilal Oswal Securities Ltd.,
MOAMC has created a single investing philosophy that drives all our equity products;
be it Mutual Fund (MF) or Portfolio Management Services (PMS).
• Like our investing philosophy, our product basket is also focused on concentrated 'buy
and hold' PMS Strategies and Mutual Fund schemes in the Large Cap, Midcap and
Multicap space respectively.
• MOAMC Value Strategy is one of the longest-running products in PMS with a track
record of 15 years. And our MF offerings come with unique features such as “Low
Churn” and “Focused” portfolios.
• With an investment management team of 21; MOAMC aim to be seen as an investment
management house focused on wholesaling through marquee distribution platforms and
strong relationships, backed by a performance track record.
Key Benefits of MOAMC:
• Strong and Active risk management

• Diversification of portfolio for adequately spreading equity-related risks.
• Active and regular monthly review and portfolio rebalancing
• Experienced and Professional fund management team
• Flexibility to switch from one strategy to other
• Additional purchase facility & Partial Withdrawal facility
Why invest with MOAMC?
• Buy & Hold philosophy with a focus on better post-tax returns for the clients
• Stock selection based on Quality of Management / Cash Reserves / Return on Equity /
Valuations at which the stock is available
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• Value is the one of the PMS in the country with 16 years + track record launched in
March 2003
• MOAMC Flagship "Value Strategy" has consistently outperformed the benchmark
across market cycles over 16 years.
• MOAMC PMS has one of the largest active accounts (A total of 10,165) on the PMS
platform.
• MOAMC - PMS has active clients in 148 different cities right from Agra to
Vijaywada; a testimony of strong acceptance of our PMS
• Focused Portfolio Investments for the client.
• Clients will get 24 *7 access to his portfolio on the web. ( Transparency )
• The Client will get a CA Certified Tax statement end of every financial year
• At Motilal Oswal Asset Management Company (MOAMC), our investment
philosophy is centered on the 'Buy Right: Sit Tight’ principle.
Buy Right:
➢ ‘Q’uality denotes quality of the business and management

➢ ‘G’rowth denotes growth in earnings and sustained RoE
➢ ‘L’ongevity denotes longevity of the competitive advantage or economic moat of the
business
➢ ‘P’rice denotes our approach of buying a good business for a fair price rather than
buying a fair business for a good price
Sit Tight:
Buy and Hold: We are strictly buy and hold investors and believe that picking the right
business needs skill and holding onto these businesses to enable our investors to benefit from
the entire growth cycle needs even more skill.
Focus: Our portfolios are high conviction portfolios with 20 to 25 stocks being our ideal
number. We believe in adequate diversification but over-diversification results in diluting
returns for our investors and adding market risk.
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Chapter 4: News Analysis (w.r.t selected
sector & company)
38
News Analysis (w.r.t selected sector & company)
The first news is related to our Economy because in a pandemic situation government gives a 20
lakh crore Covid relief Package. The headline of News is as follow:
1) India fights Covid-19: PM Modi announces Rs 20 Lakh Cr Atmanirbhar Bharat

Abhiyan package.
➢ The combined package works out to roughly 10 percent of the GDP, making it among the
most substantial in the world after the financial packages announced by the United States,
which is 13 percent of its GDP, and by Japan, which is over 21 percent of its GDP.
➢ The Rs 20 lakh crore package includes Rs 1.7 lakh crore package of free foodgrains to
poor and cash to poor women and elderly, announced in March, as well as the Reserve
Bank's liquidity measures and interest rate cuts.
➢ The government’s Package is Focuses on Land, Labour, Liquidity, and Laws. It will
cater to various sections, including the cottage industry, MSMEs, Labourers, Middle
Class, and industries.
➢ The government Pumped additional Rs 12 lakh crore into the economy.
➢ According to the latest government data, Rs 34,800 crore financial assistance using
digital payment infrastructure was provided to about 39 crore Beneficiaries.
The Second News is related to India’s financial position. The RBI Governor Shaktikanta Das
told about the financial position of India. The Headline of the news is below.
2) India's financial system sound, lenders should not be extremely risk-averse: RBI
Governor.
➢ Reserve Bank Governor Shaktikanta Das said “ India’s system is sound but lenders
should desist from extreme risk aversion during Covid-19 pandemic.
➢ Das said the top priority right now for banks and financial intermediaries should be for
augmenting capital levels and improve resilience.
➢ The financial system in India remains sound; nonetheless, in the current environment, the
need for financial intermediaries to proactively augment capital and improve their
resilience has acquired top priority," Das said.
➢ Financial sector stability is a prerequisite for giving confidence to businesses, investors,
and consumers, he said, adding "we have to remain extremely watchful and focused".
➢ Das said governments, central banks, and other public agencies across countries have
made coordinated efforts to alleviate financial stress and build confidence and these
measures have stabilized the financial system and markets.
39
The Third News is related to the Motilal Oswal AMC this news is as below.
3) Motilal Oswal AMC Launches Multi-Asset Fund: Open Till July 29, 2020.
➢ Motilal Oswal Multi-Asset Fund is an open-ended fund and as the name suggests the
fund will be investing in multiple assets. The NFO ( New Fund Offering) opened on July
15 and will close on July 29. The multiple assets are international equity index
funds/equity index funds, debt and equity, gold exchange-traded funds (ETF), and money
market instruments.
➢ In this news, all the information covers this new scheme like Investment Strategy, Asset
allocation, Fund Details( SIP investment in the fund), etc.
The fourth News is related to the Stamp duty on Mutual Fund this news is as below
4) Stamp duty on mutual funds to apply from 1 July:
➢ From 1 July 2020, stamp duty will be imposed on the purchase of mutual funds,
including systematic investment plans (SIPs) and systematic transfer plans (STPs), but
not on the redemption of units. The duty will apply to all mutual funds—debt as well as
equity. However, its impact will be felt the most on debt funds, which are typically held
for short periods.
➢ The stamp duty will be imposed at a rate of 0.005% on the purchase or switch-in amount.
Apart from this, stamp duty will also be imposed on the transfer of mutual fund units
such as transfers between demat accounts at 0.015%. Due to its design, the stamp duty is
likely to have the most impact on short holding periods of 90 days or less.
➢ The implementation of the stamp duty was initially slated for January but was postponed
first to April and then to July. The stamp duty will apply to all kinds of mutual fund
purchases, including lump sum, SIP, STP, and dividend reinvestment.
➢ For dividend reinvestment, it will be imposed on the dividend amount minus tax deducted
at source (TDS). For purchase, it will be imposed on the purchase amount less any other
charge such as a transaction charge, a note released by ICICI Prudential AMC explained.
➢ For example, assume your purchase amount is ₹1 lakh and the transaction charge is ₹100
making the net purchase cost ₹1,00,100. The stamp duty will be imposed on ₹1 lakh and not
on ₹1,00,100. At 0.005% it will come to ₹5.
40
Chapter 5: Review of Literature/
Theoretical Background
41
Review of Literature/ Theoretical Background
To carry the research, work the researcher has gone through a few reports, books, journals, and
websites. The details regarding the Financial Services Industry, history, origin, and growth of
the industry are also taken from some books, magazines, etc.
The sources of this information are as follows:
• Catalogs and Broachers from various financial companies.

• Articles from magazines and newspapers.
• Information from various websites.
Raamdeo Agrawal (Times Network India Economic Conclave 2019 being held in
Mumbai.):
Raamdeo Agrawal gave an insightful presentation at the Indian Economic Conclave 2019. He
gave a presentation on how to invest & identify India's Next trillion-dollar Opportunity.
Currently, India is approximately a $2.8-trillion economy. Agrawal pointed out that every
trillion-dollar milestone that the Indian economy crossed, had one significant characteristic.
1. The Power of compounding works best over the long term

2. He spoke about his investment mantra nicknamed- QGLP; “QGLP – Quality, Growth,
Longevity, reasonable Price”
Raamdeo Agrawal spoke his investment mantra/strategy QGLP and he told about how to use
this strategy. So, they told, “We look for the companies were the top quality business run by the
top quality management and there are a loginvent growth and quality and they (share) available
at a reasonable price no cheep but reasonable price”.
He gave investment lessons, which all investors must keep in mind before making
investment decisions-
1. “Rule no.1 – Don’t lose money; Rule no.2 – Don’t forget Rule no.1”
2. Forget markets, think stocks
3. Have a focused portfolio
4. Differentiate between good, great & gruesome companies
5. Understand the 3 sources of value - Growth, Earnings Power & Asset replacement
6. Quality of Management in QGLP – Demonstrable Competence, Unquestionable Integrity,
Growth Mindset.
42
Lubos Pastor
Journal of Finance, vol. 55, no. 1 (February 2000):179–223
The author develops a portfolio-selection method using a Bayesian framework that incorporates
a prior degree of belief in an asset-pricing model. In the empirical analysis, the author evaluates
sample evidence on home bias, value, and size effect from an asset allocation perspective. The
results provide a different perspective from that normally found in the literature on the benefits
of international diversification.
Gupta Ramesh, 1991. "Portfolio Management: The Process and its Dynamics"
Like many areas of business, portfolio management is both an art and a science. It is much more
than the selection of securities from a catalog by a financial consultant or the application of a
formula to a set of financial data input supplied by a security analyst. It is a dynamic decision-
making process, one that is continuous any systematic but also one that requires large amounts of
astute managerial judgment about the securities markets and the individual for whom portfolio is
managed. The author in this article documents the processes involved in portfolio management
and the considerations which are of paramount importance in constructing an individual’s
portfolio.
Raamdeo Agrawal, Chairman & Joint Founder, Motilal Oswal Financial Services Limited
(MOFSL), talks about his experiences in the market, ways to earn from the market, how to
find the right companies and what should be bought among others during an interview
with Anil Singhvi, Managing Editor, Zee Business.
I was read this interview on ZEE Business official Website. In this interview I focused only on
QGLP related questions in these questions Raamdeo Agrawal gave a perfect answer to these
questions. These questions and Ramdeo Agrawal answers are as below
Do you think that a retail investor can adopt this four-factor(QGLP) in his portfolio? Is it
easy for them?
It is very easy and natural. It is not Alpha, Beta, and Gama. Good company and management is a
cue. Growth is also important as it is needed and then you should think about the long term
growth. However, today we are living in a condition where everyone is aware of the short term
growth of a year or two and this why they have its valuation in the market at present. But, your
long term call of 10-20years will reward you in a better manner. For instance, D-Mart is in
demand and it is in demand not because it will grow by 50% and 25% in the next two years
respectively but the market believes that it will continue to grow by 30-35% for the next 10-
15years. Now, it depends on your conviction and belief on the talks of the market or you have
more faith in it then the market.
43
Never compromise on quality, bring a good company that is growing and have a prospect of
growth like new banks for which the whole platform is open to win. Longevity relates to the
duration, i.e. how long you can wait with them. Buy them at a reasonable price as buying them at
uneven prices may create losses. With my experience, I can say that popularity and performance
don't come at the same time.
Does quality comes with a price which means quality can't be bought with cheap stocks?
It is not so. This is a place where your wisdom has to play. Have a look at the quality and then
buy them at a reasonable price. For instance, have a look at HDFC Life or Bharat Telecom in
2003, they had the quality and it used to be the number one company in the wireless business. It
was a time, the telephone was not available across the country but it was showing quarterly
growth of 100%. It was a time when the whole company was available at Rs5,000 crore and its
shares were priced at Rs25/share and it had equity of Rs2,000 crore. But, the company earned
Rs30,000 crore in the next 5 years and there was a 50 times increase in its share prices.
Interestingly, everything is not visible to everyone and that's why you will have to wait with the
hope that you can find a comet once in a year.
44
Chapter 6: Objectives
45
Objectives
1. To study about the QGLP Mantra/ Strategy of MOFS.

2. To study of Motilal Oswal Financial Services PMS.
3. To compare the various PMS services with Motilal Oswal’s PMS.
4. To find out the awareness about PMS.
46
Chapter 7: Research Methodology
47
7.1 Research Design:
This report is based on primary as well as secondary data, however primary data collection was
given more importance since it is an overhearing factor in attitude studies. One of the most
important users of research methodology is that it helps in identifying the problem, collecting,
analyzing the required information data, and providing an alternative solution to the problem. It
also helps in collecting the vital information that is required by the top management to assist
them for in better decision making both day to day decisions and critical ones. It constitutes the
‘Blue Print’ for the collection, measurement, and analysis of the data. The study is carried out to
understand the PMS Services awareness in Dhule City.
Research type:
This is a ‘Descriptive’ (conclusive) type of research. This type of research describes what exists
and may help to uncover new facts and meanings. Conclusive research is a structured data
collection technique that provides detailed, factual information that's useful in decision-making.
Descriptive marketing research is a form of conclusive research used to describe both the
composition of a group in such terms as income, gender, age, and education and the
characteristics of group members in regards to both current and future behavior.
Sample Design:
The process of drawing a sample from a large population is called sampling. Population refers to
the total of items about which information is defined. Well-selected samples may reflect fairly
and accurately the characteristics of the population.
Sampling Unit:
The sample unit of this survey was the people who know about the PMS services in Dhule City.
Sample Size:
The sample size was 50 people, from various parts of the Dhule City.
7.2 Sampaling Method:
The convenience sampling technique (non-probability technique) was used to get the
questionnaire filled by the customers.
NON-PROBABILITY SAMPLING TECHNIQUE:
A Non-probability sample is not a product of a randomized selection process. Subjects in a

nonprobability sample are usually selected based on their accessibility or by the purposive
personal judgment of the researcher.
48
7.3 QUESTIONNAIRE:
A Structured questionnaire was developed for getting the responses from the sample population.
Primary Data:
Primary data are those which are collected for the first time. Primary data is collected by framing
questionnaires. The questionnaire contained questions which are both open-ended and closed-
ended. Open-ended questions are. Questions requiring answers in the responder’s own words.
Closed-ended questions are those wherein the respondent has to merely check the appropriate
answer from a list of options available. Any doubts raised by the Respondents were clarified to
get the perfect answers from the distributors. Open-ended questions yielded more insightful
information, whereas closed-ended questions were relatively simple to tabulate and analyze.
Secondary Data:
Secondary data means data that are already available i.e. they refer to the data which have been
collected and analyzed by someone and can save both money and time of the researcher.
Secondary data may be available in the form of company records, trade publications, libraries,
etc. Secondary data sources are as follows:
➢ Company Reports
➢ Daily Newspaper
➢ Standard Textbook
➢ Various Websites
49
Chapter 8: Data Analysis/ Data
visualization and Interpretation
50
Data Analysis/ Data visualization and Interpretation
8.1 What is QGLP?
QUALITY:
Quality of a business/company is reflected in its ability to derive superior returns on capital

invested while treating stake holders in a consistently fair way. This ability should be deep-
rooted and hence sustainable.
Quality itself can be characterized into two dimensions-'Quality Business' and 'Quality
Management'
1. Quality Business:
➢ A Quality Business is one with a sustained competitive advantage measured by high

return ratios, in absolute terms and/or relative to peers. Some good examples of these
characteristics can be seen in stocks like HDFC Bank and TCS.
➢ A Quality Business also has Industry leadership position. Like Bosch India which is the
undisputed leader in Fuel Injection System for medium/heavy commercial vehicles and
tractors.
➢ In addition, Quality Businesses typically have a favourable industry structure i.e. they
operate in a monopoly, duopoly or oligopoly. Good examples of such industries are
Asian Paints and United Spirits.
➢ Quality is found in secular and stable businesses; preferably consumer facing. A good
example of such a business is Colgate which has been present in oral care as an
established consumer category for many years.
➢ Another characteristic of a Quality Business is limited use of leverage on the balance
sheet.
51
2. Quality Management:
➢ Quality Management is one which has competence and can be seen in the industry
leading margins they command. Infosys and Sun Pharma are good examples of this.
➢ Quality Management is also characterized by a rational capital allocation policy. A good
example is Hero Honda, given its focused investment in core business and high dividend
pay outs.
➢ Quality Management believes in rewarding its shareholders with regular dividend.
Companies like Colgate and Page Industries are examples.
➢ Quality Management thinks innovatively in terms of their company's products, processes
and selling approach. For example, the management of Pidilite has successfully created
new segments/markets through innovation.
➢ Quality Management is honest and trustworthy. It is also transparent in its dealings and
provides adequate disclosures. Infosys is one of the fore most example here.
GROWTH:
Most Investors look for growth while selecting companies for investing. However, growth by
itself doesn't mean much. It adds value only when the company earns Return on Capital higher
than its Cost of Capital. Hence, Growth is simply an amplifier: good when return exceeds cost of
capital, bad when return is below cost of capital, and neutral when return equals cost of capital.
Higher growth adds value for high return businesses and detracts value for lower turn businesses.
Growth can be identified with the following characteristics:
➢ Is the company in a growing, large and addressable market? P & G in the consumer
goods space and Page Industries in the innerwear category are not only in large and
growing categories; they also have the products to address various needs of their markets.
➢ Is the company gaining market share? Sun Pharma and Amara Raja Batteries are good
examples here.
➢ There are various margin growth levers in the company's operations that can help identify
growth. For example, Bata's growth in margins happened due to continuous reduction in
its employee costs.
LONGEVITY:
The final driver of franchise value is the sustain ability of excess return by companies. Overtime,
economic forces tend to drive down return on Invested capital to cost of capital. Hence, a central
task for an investor is to assess how long a company earning above its cost of capital can
continue to find productive investment opportunities. Stock prices often reflect 10-20 years of
value-creating cash flows. Competitive strategy analysis is particularly useful in this effort.
52
➢ Longevity can be identified in the long competitive advantage period that a company has.
For example, Power Grid Corporation and Container Corporation have a long period of
competitive advantage before competition can catch up.
➢ Longevity can also be seen in understanding growth potential for10-15years. For
example, the low penetration of the spirits market and United Spirits’ critical mass gives
a good indicator of the longevity of its growth.
PRICE:
Price of a stock has to be seen in conjunction with Value it offers. Price is what we pay, value is
what we get. Therefore, stocks are attractive only when they are priced less than the value
perceived in the stock.
➢ Pricing can be evaluated by the following characteristics:

➢ P/B (Price-to-Book)
➢ PEG (Price-Earnings to Growth) ratio
➢ Popular/Unpopular idea
➢ Pay back ratio
➢ Dividend yield.
Here I use QGLP Strategy and try to give some stock:
1) Q- 1) Quality Business: i) TCS ii) ICICI Bank
2) Quality Management: i) ONGC ii) Asian Paints
2) G- 1) Reliance Industries
2) HDFC Bank
3) L- 1) Reliance Industries
2) Hindustan Unilever Ltd.
4) P- 1) ITC
2) IOLCP
These are the stock I am selectd here using QGLP strategy.
53
8.2 Motilal Oswal PMS Strategy
The PMS offers various strategies for the investment portfolio of clients which suits them
according to their investment objectives and requirements.
Here I am going to discuss the main strategies of MOFSL:
• Value Strategy
• Next Trillion Dollar Opportunity
• India Opportunities Portfolio Strategy
Value Strategy:
The aim of the value strategy is to invest in long-term through large cap companies which will
give the portfolio consistent and stable growth. This strategy is for those investors who can wait
for the long term for getting better growth. Underr this strategy, investment is done in good
growing companies, which are managed under great business managers who work hard for better
wealth creation.
The style of this strategy is much different from most of the strategies used by the PMS houses in
the market. Under this strategy, undervalued stocks are bought and overvalued stocks are sold,
irrespective of index movement.
Next Trillion Dollar Opportunity:
Next Trillion Dollar Opportunity is the second best strategy used by the MO PMS. Under this
strategy, the investment portfolio comprises of multi-cap stocks. The theme behind this strategy
is to invest in ‘Next trillion dollar GDP growth Opportunity”. It means the aim is to invest in
growing businesses and secorts which has a bright future and opportunity for better growth.This
Strategy is concentrated with diversified portfolio of around 25 stocks. It contains large cap, high
risk & return & dynamic stocks. This help a portfolio to grow at a very decent pace.
Indian Opportunity Portfolio Strategy:
India opportunity portfolio strategy is the third most effective strategy used by MO PMS. This
strategy aims to capitalize on the growth by investing in those companies which are expected to
grow with the growth of the indian economy.
54
This strategy consist of 20 stocks of mid cap & small cap stocks. It will give a major booth when
required & can also take down the portfolio. It is majorly high risk & high return portfolio. This
strategy has a new version aswell known as Indian Opportunity Portfolio V2 Strategy.
Motilal Oswal PMS Charges

Below tables provides all details of Motilal Oswal Portfolio Management Services Charges:
Charges
Management Fees As per commission model
Upfront Fees 1% – 2% of Asset Value
Brokerage Charges 0.01% – 0.05% of Total Transaction Value
Custodian Charges 0.3% – 0.4% of Asset Value
Depository Charges 0.15% – 0.2% of Asset Value
Exit Load – within 12 months 1.5% – 2% of Withdrawal Value
Exit Load – post 12 months Free or 0.05% of Withdrawal Value
These are list of charges levied by Motilal Oswal PMS:
Management Fees – This is as per the commission model agreed upon between the client &
PMS team.
Upfront Fees – An upfront fees is also charged by motilal oswal pms team. This charge is more
like a prepaid value. This charge ranges between 1% – 2% of the Investment amount.
Brokerage Charges – Motilal PMS also charges brokerage on all transactions done by the Fund
Manager. The charges is between 0.01% – 0.05% of total transaction value.
Custodian Fee – The PMS house also charge custodian change from its clients. This charges is
between 0.3% – 0.4% of Asset Value.
Depository Charges – The depository charges are between 0.15% – 0.2% of Asset Value.
55
Exit Load Fees – The exit load fees is charged by PMS house depending on the client
withdrawal duration & amount that is withdrawn. If the withdrawal takes place within 1 year of
portfolio creation the fees is 1.5% – 2% of withdrawal amount. If the withdrawal happens post 1
year then for some cases withdrawal is free & for some cases it is 0.05% of withdrawal value.
8.3 Comparison of PMS in Multi Cap (Date-11-07-2020)
Aditya Birla Capital V/s Motilal Oswal

Strategy Aditya Birla Capital-India Special Motilal Oswal Business
Opportunities opportunities
AMC Aditya Birla Capital Motilal oswal AMC
Category Multi Cap. Multi Cap.
Investment The investment objective of the Strategy aims to predominantly
Objective portfolio is to invest in stocks that invest in small and midcap stocks
are primed to benefit the catalysts with a focus on identifying
and secular growth. potential winners. Five basic
themes Affordable Housing,
Market share gain by NBFCS &
PVT. Sector Banks from PSU
Banks, Rise in consumer
discretionary, Agriculture.
Investment The core focus would be on “Buy and Hold” Strategy of
Attribute approximately 15-25 companies that QGLP. The portfolio will be
are primed to benefit from the constructed based on in-depth
catalysts mentioned like micro research to leading to bottom-up
turnaround, Macro/Change in stocks picking with views of
business cycle, management change, equities from 3-4 years
Deleveraging, Demerger, Mid to Prospective.
large cap potential, secular growth.
Inception 15 June, 2018 16 Jan, 2018
Date
Fund Ms. Natasha Lulla Mr. Manish Sonthalia
Manager
Asset Under 374.47 670
Management
(approx.)
Top 5 HDFC Bank Ltd. 8.61% Max fin. Services Ltd.
Holdings 10.50%
Dr. Lal pathlabs Ltd. 6.02% HDFC Bank Ltd.
10.30%
Torrent power Ltd. 5.91% Kotak Mahindra Bank Ltd.
8.00%
ITC Ltd. Bata India Ltd. 7.90%
5.68%
56
Bharti Airtel ICICI Bank Ltd.
5.47% 6.80%
Top 5 Sectors Financials 26.98% Banks 25.10%

Heath Care 19.26% FMCG 16.40%
Industrials 12.70% Non-Lending Financials 14.00%
Consumer staples 12.45% Retail 10.80%
Consumer Discretionary 8.32% Auto & Auto Ancillaries
9.30%
Allocation Large Cap 58.57% Large Cap 66.80%

(Cap)
Mid Cap 30.83% Mid Cap 25.30%
Small Cap 5.89% Small Cap 3.70%
Cash/Equivalent 4.71% Cash/Equivalent 4.20%
Returns Comparison
57
8.4 Comparison of PMS in Small Cap (Date- 21-07-2020)
Motilal Oswal V/s Sundaram Alternatives

Strategy Motilal Oswal India opportunity-V2 Sundaram Alternatives- Rising Stars
AMC Motilal Oswal AMC Sundaram Alternatives
Category Small Cap Small Cap
Investment The Strategy aims to generate long To seek long term capital appreciation
Objective term capital appreciation by creating a by investing predominantly in
focused portfolio of high growth equity/equity related instruments of
stocks having the potential to grow companies that can be termed as small
more than the nominal GDP for next caps and can grow higher than nominal
5-7 years across and which are GDP over the next three to five years.
available at reasonable market prices.
Investment Buy Right & Sit Tight / predominantly Identify stocks in the small cap space
Attribute to invest in small and mid-cap with that are in early stages of their business
focus on potential winners. Focus on cycle and could emerge as tomorrow’s
sectors and companies which promise midcaps Bottom up stocks selection
a higher than average Growth by with investments in fundamentally
focusing on QGLP. sound businesses and visionary
managements.
Inception 05 Feb, 2018 01 Jun, 2016
Date
Fund Mr Manish Sonthalia Mr. Ratish Varier
Manager
Asset Under 372 Undisclosed
Management
(approx.)
Average Mkt 120670 4101
Cap
Top 5 Reliance Industries Ltd. 10.20% Navin Flourine International Ltd.
Holdings 8.90%
Ipca Laboratories Ltd. 9.50% Esab India Ltd. 5.30%
L&T InfoTech Ltd. 9.50% Hikal Ltd. 5.10%
Godrej Agrovet Ltd. 6.80% Laurus Labs Ltd. 4.90%
Bajaj Electricals 6.60% Hatsun Agro Products Ltd. 4.60%
Top 5 Sectors Non-Lending financials 15.60% Consumer Goods 26.80%

Consumer Durables 13.80% Industrial Manufacturing
19.00%
Consumer Non-Durables 12.70% Chemicals 11.80%
IT- Software 11.20% Pharmaceuticals 10.10%
Petroleum Products 10.20% Financial Services 7.10%
Allocation Large Cap 20.00% Large Cap 0.00%

(Cap)
Mid Cap 37.00% Mid Cap 11.00%
58
Small Cap 43.00% Small Cap 85.00%
Cash / Equivalent 0.00% Cash / Equivalent 4.00%
Returns Comparison
59
8.5 Comparison of PMS in Large Cap (Date- 21-07-2020)
ICICI Prudential V/s Motilal Oswal

Strategy ICICI- LARGE CAP MOTILAL OSWAL – VALUE
AMC ICICI Prudential PMS Motilal Oswal AMC
Category LARGE Cap LARGE cap
Investment A diversified equity portfolio that Value strategy aims to benefit from
Objective endeavours to achieve long term capital the long term compounding effect on
appreciation by investing predominantly investment done in good businesses,
in large-cap companies. run by great business managers for
superior wealth creation.
Investment The Portfolio predominantly invests in Buy Right & Sit Tight / QGLP /
Attribute companies that tend to grow earnings at Likely earning 20-25% on net-worth /
a fast pace and are reasonably priced. balace between growth and value –
The portfolio aims to generate alpha by purchasing a piece of great business at
active sector rotation through top-down a fraction of its true value.
approach.
Inception 17 Mar, 2009 24 Mar, 2003
Date
Fund Mr Parag Thakkar Mr Shrey Loonker & Mr Susmit
Manager Patodia
Asset Under 104.24 1762
Management
(approx.)
Average Mkt 205957 144062
Cap
Top 5 Kotak Mahindra Bank Ltd. Max Financial Services Ltd.
Holdings 7.34% 11.90%
Godrej Consumer Products Ltd. 6.69% HDFC Bank Ltd 9.10%
Marico Ltd. 6.37% HDFC Std. Life Insurance Co. Ltd.
9.00%
ICICI Prudential Life Insurance Ltd. ICICI Bank Ltd.
6.20% 8.70%
HDFC Std. Life Insurance Co. Ltd. IPCA Laboratories Ltd 5.70%
5.73%
Top 5 Sectors Finance 21.89% Banks 25.00%

Consumer Non-Durables 21.01% Non-Lending Financials 20.90%
Banks 14.20% Pharmaceuticals 13.60%
Auto 11.29% Telecom 5.40%
Cement 7.46% Auto 4.30%
Allocation Large Cap Undisclosed Large Cap 63.00%

(Cap)
Mid Cap Undisclosed Mid Cap 27.00%
Small Cap Undisclosed Small Cap 3.00%
60
Cash / Equivalent Undisclosed Cash / Equivalent 7.00%
Returns Comparison
61
8.6 Questionnaire Analysis:
1. Are you aware about portfolio Management services?
Figure No. 1
Interpretation: In this question, I check the awareness about PMS. But in the dhule region most
of the people are not aware of the PMS.
2. Are you aware about Motilal Oswal Financial Services?
Figure No. 2
Interpretation: In this question, I check the awareness about MOFS. But in the whole region,
most of the people are not aware of the MOFS. Motilal oswal company should conduct awareness
programs in dhule region.
62
3. What types of services you are aware of?
Figure No. 3
Interpretation: In this question, I check the awareness about Services. Most people are aware
of the Management of MF services.
4. Please state your investment objective:
Figure No. 4
Interpretation: Most of the people objective is Growth and Income. Means people focus on the
Growth as well as income of source.
63
5. Would you want to hire a portfolio manager at present or in future?
Figure No. 6
Interpretation: In this question, I check the people they want to hire a portfolio manager or not.
In region, most people are want to hire a portfolio manager.
6. While creating a portfolio your maximum allocation is in ---------
Figure No. 6
Interpretation: Most of the people want to their portfolio maximum allocation in saving bank,
then FD, and then Mutual fund.
64
7. Which of the following goals you try to achieve while creating a Portfolio?
Figure No. 7
Interpretation: Most of the people focuses on the Minimisation of risk and Safety first and
then gain. This means in dhule region people are not aggressive about the investment they are
conservative investors.
8. In your opinion do “Professional Portfolio managers manage risk more effectively than
others”? Tick one
Figure No. 8
Interpretation: In this question I check the opinion of the people about professional portfolio
managers manage risk more effectively than others. Most of the people are agree on this
question.
65
9. You expect return on your equity portfolio over how much time period?
Figure No. 9
Interpretation: Most people want their return on yearly basis. This Means the company has a
good chance to invest money.
10. Factor has the maximum effect on the portfolio objectives of an investor. (1-
Strongly Disagree; 2-Disagree; 3-Neither Agree nor Disagree; 4-Agree; 5-Strongly Agree)
Figure No. 10
Interpretation: Most people agree with the risk-bearing capacity and family responsibility
these two factors are an effect on portfolio objectives.
66
Chapter 9: Conclusions / Learnings from
the Project
67
Conclusion and Learning From the Project
This study titled “Study for QGLP of Portfolio Management Services of Motilal Oswal Financial
Services” enables the Financial Service provider company to understand how consumer’s
perception differs from person to person. How a consumer selects, organizes, and interprets the
service quality and the product quality of different PMS services, Mutual Fund services, etc
offered by various financial services Companies
The response of the financial services companies has been very positive and within a short span
on time, the Indian market scenario has seen a perceptible change in terms of improved customer
service benchmarks and the introduction of innovative and tailors made products. Most of the
financial products majors have represented in the form of a joint venture in the Indian market.
The new products that have been introduced by the companies have certain innovative features in
terms of better customer services and also wider covers. This has given customers ample choice
to select products.
I carried out the study on sales promotional activities and customer awareness towards the
financial products (PMS, Mutual Funds, Equity, etc.). Also studied the perception of the people
while investing in various financial products. This survey was done in Dhule. This survey was
check the awareness about the financial products and people who think about these products. I
give an analysis of the questionnaire most of the people are not aware of the financial products
they are doing their investment in the traditional way so we have to aware of those people.
The Important thing is most of the people are not aware of PMS and financial product. So, we
have to give them the knowledge about those products.
68
Learning:
An internship was an opportunity to test my knowledge about the various financial products. In
an internship, I learned a lot of things. It provided me experience, lessons, and tools I will need
to get a full-time gig in the future. This provided me with the opportunity to grow and learn
before fully entering the working world.
➢ Here are all Points or things that I learned in an internship:

➢ Professional Communication
➢ Networking is important
➢ Work under pressure
➢ How to communicate with the client
➢ Customer Interaction
➢ Learned about the various financial products
69
Chapter 10. Limitations of the project
70
Limitations of the Project
Although the study was carried out with extreme enthusiasm and careful planning there are
several limitations that handicapped the research viz.
1. Time Constraints: The time stipulated for the project to be completed is less and thus there are
chances that some information might have been left out, however, due care is taken to include all
the relevant information needed.
2. Sample size: Due to time constraints the sample size was relatively small and would
definitely have been more representative if I had collected information from more respondents.
3. Accuracy: It is difficult to know if all the respondents gave accurate information; some
respondents tend to give misleading information.
4. Face to Face Interaction: Due to pandemic I am not meet customers face to face so, it is very
difficult to give information related to the financial products.
71
Chapter 11. Recommendations
72
Recommendations:
1. There is a need to generate awareness about the financial products so that more people will get
products and its benefits
2. To increases the advertisement so they can more aware of the financial services sector.
3. The Motilal Oswal only focuses on the urban area not in a rural area so, I recommended the
company also focuses on the rural area.
4. In my survey most people are not aware of the PMS, mutual funds, etc. so the company tries
to focus on those people. And give them knowledge about PMS, MF, etc.
73
Chapter 12 - Bibliography - Appendices
74
Bibliography
Website:
1. https://www.motilaloswalgroup.com/
2. https://www.equitymaster.com/research-it/sector-info/finance/Investment-Finance-
Sector-Analysis-Report.asp
3. https://pmsbazaar.com/
4. https://economictimes.indiatimes.com/motilal-oswal-financial-services-
ltd/infocompanyhistory/companyid-18715.cms
5. https://www.mbaskool.com/.
6. https://www.ibef.org
News Papers:
1. Economics Times
2. Times of India
3. India Today
Books:
1. Security Analysis & Portfolio Management - Fishers & Jordon,

2. Security Analysis & Portfolio Management – V.A.Avadhani
3. Investment ananlysis and portfolio management- Prasanna Chan
75
Questionnaire:
1. Are you aware about portfolio Management services?

2. Are you aware about Motilal Oswal Financial Services?
3. What types of services you are aware of?
4. Please state your investment objective
5. Would you want to hire a portfolio manager at present or in future?
6. While creating a portfolio your maximum allocation is in ---------
7. Which of the following goals you try to achieve while creating a Portfolio?
8. In your opinion do “Professional Portfolio managers manage risk more effectively
than others”? Tick one
9. You expect return on your equity portfolio over how much time period?
10. Factor has the maximum effect on the portfolio objectives of an investor. (1-Strongly
Disagree; 2-Disagree; 3-Neither Agree nor Disagree; 4-Agree; 5-Strongly Agree)
ix

Jay Suhas Chaugaonkar

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A Summer Internship Project Report on

Study for QGLP of Portfolio Management Services of Motilal Oswal

Submitted in partial fulfillment of the requirement for the degree of

(Affiliated to Savitribai Phule Pune University)

Under the guidance of

A study conducted for

Motilal Oswal Financial Services

Indira School of Business Studies

Department of Master of Business Administration

Student Name: Jay Suhas Chaugaonkar

Roll No. / Batch: D1-F04/ (2019-21)

Indira School of Business Studies, Pune

To Whomsoever It May Concern

Business Studies, Pune.

Dr. Renu Bhargava Prof. Tanay Kurode

2 Sector Analysis 4-18

3 Company Analysis 19-37

4 News Analysis (w.r.t selected sector & 38-40

5 Review of Literature/ Theoretical 41-44

7 Research Methodology 47-49

8 Data Analysis/ Data visualization, 50-66

Results and Interpretation

9 Conclusions / Learnings from the 67-69

10 Limitations of the project 70-71

1.1 What is the project?

1.2 Definition of concept:

1.3 Purpose & Objectives of the project:

• To study of the MOFS’S financial products.

➢ It offers professional management of equity investment of the investors with an aim to

1.5 Salient Contributions to the project:

➢ Provided service as an intern for 75 days.

➢ To understand the importance of time to cash.

➢ To understand how stock market trend changes.

1.6 Outline of the project:

2.1 Overview and structure of sector:

2.2 Porter’s 5 forces model

Porter’s 5 forces model of Financial Service sector:

• Power of Competitive Rivalry: The Financial industry is considered highly competitive.

• Players in the financial services sector:

List of top financial services companies in India.

SBI Capital Markets Limited:

Birla Global Finance Limited:

Housing Development Finance Corporation:

PNB Housing Finance Limited:

LIC Finance Limited:

2.5 Key trends and challenges of the sector:

• Accelerating Focus on Digital Transformation:

• The Emergence of FinTech Companies

• Building a Cognitive Side to the Business

• Re-thinking the Concept of Money

• Transformation: Key to the Industry's Future

Challenges of the sector:

• Regulatory Compliance in Finance:

• Big Data Use in Finance

• Customer Retention in the Financial Services Industry

• Employee Retention in the Financial Service Industry

• RBI as an apex monetary institution:

Control money supply.

• SEBI as a regulatory body for the securities market:

Protect the interests of investors through proper education and guidance

• Pension Fund Regulatory and Development Authority (PFRDA)

2.7 Contribution to the economy, employment & Growth Rate: