Professional Documents
Culture Documents
Project For Sharekhan
Project For Sharekhan
“COMPARATIVE STUDY ON
SHARE MARKET & MUTUAL FUND
IN SHAREKHAN”
FOR
SHAREKHAN LIMITED
BY
RAJNEESH KUMAR
To
The Training officer
Rajesh Antil
New Delhi
Date; _________
Place; _________ Authorized signatory
ACKNOWLEDGEMENT
(R
AJNEESH KUMAR)
RAJNEESH KUMAR
E.NO- 05419301710
ABSTRACT
Kasturi Ram College of Higher Education
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In the corporate world of today customer is considered as the King
and is placed at the top and if you have won the customer then the
gold coin is in your pocket. For those two rules are to be followed
they are:
Rule 1 –Customer is always right
Rule 2 = if not, refer to rule 1.
If these two rules are followed then the customers will always be
happy and would be having a better relation with the market. In
business, building long term relationship is very important.
Relationship management plays a vital role while dealing with
financial instruments.
The project also is an endeavor towards unearthing the psyche of the
end-users of these financial products.
For completion of this respective task, personal interaction with the
executive was done so as to get the first hand information.
2. COMPANY PROFILE
2.1 About company
2.2 Reason to choose Sharekhan
2.3 Products of Sharekhan
2.4 Types of Account
3 SHARE MARKET OVER VIEW
3.1 About share market
3.2 Difference Between Primary and Secondary Market
3.3 Terminology used in Share Market
3.4 How to get a Demat Account?
3.5 Role of Stock Exchange
3.6 Listing of Securities
4 RESEARCH METHODOLOGY
4.1 Data collection
7 CONCLUSSION
8 BIBLIOGRAPHY
EXECUTIVE SUMMARY
Indian Capital Market has been linked to the International Financial Market and the
Standard has been increased in terms of efficiency and transparency through
Dematerialization of the Indian Capital Market in terms of handling and dealing in securities
in paper mode , the main objective of this study is to analyze trends in growth of
dematerialization process was not keeping pace with the Indian Capital Market due to un
popularity of Demat, lack of information , and short direction after the inception of the
scheme or the earliest time taken to evaluate its popularity. My project is base on study about
dematerialization in the Indian Capital Market .The project covers issues related to
depository and Sharekhan as depository .Project start with objective , Methodology ,and
limitation of project than it highlight company profile with product details, than it explains
capital market and depository part of this capital market . This project cover trading in
equity of capital market, settlement of trade in depository, comparative analysis of structure
and services offers in the same industry , analysis of structure and services offers in the same
industry, analysis of dematerialization , issues related to demat e.g. opening account ,
nomination dematerialization ,transmission ,freezing defreezing.
SHAREKHAN
A. BY STRUCTURE
1. Open-end Funds
An open-end fund is one that is available for subscription all through the year. These
do not have a fixed maturity. Investors can conveniently buy and sell units at Net
Asset Value ("NAV") related prices. The key feature of open-end schemes is
liquidity.
2. Closed-end Funds
A closed-end fund has a stipulated maturity period which generally ranging from 3 to
15 years. The fund is open for subscription only during a specified period. Investors
can invest in the scheme at the time of the initial public issue and thereafter they can
buy or sell the units of the scheme on the stock exchanges where they are listed. In
order to provide an exit route to the investors, some close-ended funds give an option
of selling back the units to the Mutual Fund through periodic repurchase at NAV
related prices. SEBI Regulations stipulate that at least one of the two exit routes is
provided to the investor.
3. Interval Funds
Interval funds combine the features of open-ended and close-ended schemes. They are
open for sale or redemption during pre-determined intervals at NAV related prices.
B. BY INVESTMENT OBJECTIVE
1. Growth Funds
The aim of growth funds is to provide capital appreciation over the medium to long
term. Such schemes normally invest a majority of their corpus in equities. It has been
proved that returns from stocks, have outperformed most other kind of investments
held over the long term. Growth schemes are ideal for investors having a long-term
outlook seeking growth over a period of time.
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2. Income Funds
The aim of income funds is to provide regular and steady income to investors. Such
schemes generally invest in fixed income securities such as bonds, corporate
debentures and Government securities. Income Funds are ideal for capital stability
and regular income.
3. Balanced Funds
The aim of balanced funds is to provide both growth and regular income. Such
schemes periodically distribute a part of their earning and invest both in equities and
fixed income securities in the proportion indicated in their offer documents. In a rising
stock market, the NAV of these schemes may not normally keep pace, or fall equally
when the market falls. These are ideal for investors looking for a combination of
income and moderate growth.
Most individuals buy mutual funds for long-term goals, especially retirement. It is
estimated that retirees will need 70 to 80 percent of their final, pre-tax income to
maintain a comfortable lifestyle in retirement. If you plan to retire at age 65,
retirement savings should last for at least 18.5 years, since the average life expectancy
for a 65-year-old is 83.5, and continues to rise. Ideally, individuals use a
Combination of sources to fund retirement, such as Social Security benefits,
employer-sponsored retirement plans-like 401(k) plans—and personal savings,
including Individual Retirement Accounts (IRAs).
OTHER SCHEMES
1. Tax Saving Schemes
These schemes offer tax rebates to the investors under specific provisions of the
Indian Income Tax laws as the Government offers tax incentives for investment in
specified avenues. Investments made in Equity Linked Savings Schemes (ELSS) and
Pension Schemes are allowed as deduction u/s 88 of the Income Tax Act, 1961. The
Act also provides opportunities to investors to save capital gains u/s 54EA and 54EB
by investing in Mutual Funds.
2. Special Schemes
Index Schemes
Index Funds attempt to replicate the performance of a particular index such as
the BSE Sensex or the NSE 50
Diversification:
The best mutual funds design their portfolios so individual investments will react
differently to the same economic conditions. For example, economic conditions
like a rise in interest rates may cause certain securities in a diversified portfolio
to decrease in value. Other securities in the portfolio will respond to the same
economic conditions by increasing in value. When a portfolio is balanced in this
way, the value of the overall portfolio should gradually increase over time, even
if some securities lose value.
Professional Management:
Most mutual funds pay topflight professionals to manage their investments.
These managers decide what securities the fund will buy and sell.
Regulatory oversight:
Mutual funds are subject to many government regulations that protect
investors from fraud.
Liquidity:
It's easy to get your money out of a mutual fund. Write a check, make a
call, and you've got the cash.
Convenience:
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You can usually buy mutual fund shares by mail, phone, or over the
Internet.
Low cost:
Mutual fund expenses are often no more than 1.5 percent of your investment.
Expenses for Index Funds are less than that, because index funds are not actively
managed. Instead, they automatically buy stock in companies that are listed on a
specific index
Transparency
Flexibility
Tax benefits
Fees and commissions: All funds charge administrative fees to cover their
day-to-day expenses. Some funds also charge sales commissions or "loads" to
compensate brokers, financial consultants, or financial planners. Even if you
don't use a broker or other financial adviser, you will pay a sales commission if
you buy shares in a Load Fund.
Taxes: During a typical year, most actively managed mutual funds sell
anywhere from 20 to 70 percent of the securities in their portfolios. If your fund
makes a profit on its sales, you will pay taxes on the income you receive, even if
you reinvest the money you made.
Management risk: When you invest in a mutual fund, you depend on the
fund's manager to make the right decisions regarding the fund's portfolio. If the
manager does not perform as well as you had hoped, you might not make as
much money on your investment as you expected. Of course, if you invest in
Index Funds, you forego management risk, because these funds do not employ
managers.
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COMPANY PROFILE
2.1 ABOUT SHAREKHAN
Share khan is one of the leading retail brokerage firms in the country. It is the retail
broking arm of the Mumbai-based SSKI Group, which has over eight decades of
experience in the stock broking business. Sharekhan offers its customers a wide range
of equity related services including trade execution on BSE, NSE, Derivatives,
depository services, online trading, investment advice etc.
The firm’s online trading and investment site – www.Sharekhan.com was
launched on Feb. 8, 2000. The site gives access to superior content and transaction
facility to retail customers across the country. Known for its jargon-free, investor
friendly language and high quality research, the site has a registered base of over one-
lakh customers. The number of trading members currently stands at over 3 lakh. While
online trading currently accounts for just over 1 percent of the daily trading in stocks in
India, Sharekhan alone accounts for 22 percent of the volumes traded online.
The content-rich and research oriented portal has stood out among its
contemporaries because of its steadfast dedication to offering customers best-of-breed
technology and superior market information. The objective has been to let customers
make informed decisions and to simplify the process of investing in stocks.
On April 17, 2002 Sharekhan launched speed trade, a net-based executable
application that emulated the broker terminals along with host of other information
relevant to the day traders. This was for the first time that a net-based trading station of
this caliber was offered to the traders. In the last six months Speed Trade has become a
de facto standard for the Day Trading community over the net.
Share khan’s ground network includes over 250 centers in 123 cities in India, of
which 20 are fully-owned branches.
Sharekhan has always believed in investing in technology to build its business.
The company has used some of the best-known names in the IT industry like Sun
Microsystems, Oracle, Microsoft, Cambridge Technologies, Nexgenix, Vignette,
VeriSign Financial Technologies India Ltd., Spider Software Pvt. Ltd. to build its
trading engine and content. The Morakhia family holds a majority stake in the
company. HSBC, Intel & Carlyle are the other investors.
Technology
With our online trading account you can buy and sell shares in an instant from any PC
with an Internet connection. You will get access to our powerful online trading tools
that will help you take complete control over your investment in shares.
Accessibility
Sharekhan provides ADVICE, EDUCATION, TOOLS AND EXECUTION services for
investors. These services are accessible through our centers across the country (over
250 locations in 123 cities), over the internet (through the website
www.sharekhan.com) as well as over the voice tool.
Knowledge
In a business where the right information at the right time can translate into direct
profits, you get access to a wide range of information on our content-rich portal,
sharekhan.com. You will also get a useful set of knowledge-based tools that will
empower you to take informed decisions.
Convenience
You can call our Dial-N-Trade number to get investment advice and execute your
transactions. We have a dedicated call-centre to provide this service via a toll free
number from anywhere in India.
Customer Service
Our customer service team will assist you for any help that you need relating to
transactions, billing, Demat and other queries. Our customer service can be contracted
via a toll-free number, email or live chat on sharekhan.com.
Investment Advice
Sharekhan has dedicated research teams for fundamental and technical research. Our
analyst constantly track the pulse of the market and provide timely investment advice to
Benefits
Secure Order by Voice Tool Dial-n-Trade.
Automated Portfolio to keep track of the value of your actual purchases.
24x7 Voice Tool access to your trading account.
Personalized Price and Account Alerts delivered instantly to your cell
phone & email address.
Special Personal Inbox for order and trade confirmations.
On-line customer service via web chat.
Anytime Ordering.
Features
Online trading account for investing in equity and derivatives via
www.sharekhan.com
Live terminal (NSE Online, BSE Offline)
Integration of on-line trading, saving bank and Demat account.
Instant cash transfer facility against purchase & sale of shares.
Competitive transaction charges.
Instant order and trade confirmation be email.
Streaming Quotes. (Cash & Derivatives)
Personalized market watch.
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Single screen interface for cash and derivatives and more.
Provision to enter price trigger and view the same online in market watch.
Dial-n-trade – Along with enabling access for your trade online, the
CLASSIC also gives you our Dial-n-trade services. With this service, all
you have to do is dial our dedicated phone lines 1-800-22-7500 and 1-800-
22-7050.
2. Tiger Trade Account – It is an internet-based software application that
enables you to buy and sell in an instant.
It is ideal for active trades and jobbers who transact frequently during day’s
session to capitalize on intra-day price movement.
Features
A single platform for multiple exchanges BSE, NSE, MCX, NCDEX,
Mutual funds and IPO’s.
Multiple Market Watch available on a single screen.
User can save his own defined screen as well as graph template, that is, can
save the layout for future use.
User-defined alert settings on an input Stock Price trigger tools available to
gauge market such as Tick Query, Ticker, Market Summary, Action Watch,
Option Premium Calculator, and Span Calculator.
Shortcut key for FAST access to order placements & reports.
FEES STRUCTURE
Charge Classic Account Tiger trade account
FACTS
AMC Rs. 750/- Rs. 750/- Rs .16 per Rs.16per Rs. 400/-
transaction transaction
BROKRAGE INT .15% INT .15% INT .10% INT .10% INT .05%
Note
In India bull provide two types of account cool and demat account and both
charge is shown on the table.
In this table Religare and India bull provide only R.M. facility insists of research
report.
PRIMARY MARKET
The first time that a company shares are issued to the public, it is by a process
called the initial public offering (IPO). In an IPO company offloads a certain
percentage of its totals shares to the public at a certain price. Most IPOs these days
do not have a fixed offer price instead they follow a method called the book
building process, where the offer price is placed in a hand or a range with the
highest and the lowest value (refer to the newspaper ad). The public can bid for
SECONDARY MARKET
Companies get themselves listed on popular stock exchanges like BSE and NSE
SECONDARY MARKET
Once the offer price is fixed and the shares are issued to the people, stock
exchanges facilitate the trading of shares for the general public. Once a stock is
listed on an exchange, people can start trading in its shares. In a stock exchange
the existing shareholders sell their shares to anyone who is willing to buy them at
a price agreeable to both the parties. Individuals cannot buy or sell shares in a
stock exchange directly they have to execute their transactions through authorized
members of the stock exchange who are also called stock brokers.
Relationship Manager
Live chat
Call centre
SMS
Website Email
CUSTOMER SUPPORT
Multi Channel
Investment Option
Online Trading
Columns 1 & 2: column 1&2 shows 52- Week High and Low price rate of
shares.
Column 9 & 10: column 8 shown Day High and Low rate of share.
Column 12: column 8 shown Net Change of shares which share goes up or
down that thing is shown with the help of this table.
Tax advantages:
Shares appear as the best investment option if you also consider the unbeatable tax
benefits that they offer. First, the dividend income is tax-free in the hands of
investors. Second, you are required to pay only a 10% short term capital gains
tax on the profits made from investments in shares, if you book your profits within
a year of making the purchase. Third, you don't need to pay any long-term
capital gains tax on the profits if you sell the shares after holding them for a
period of one year. The capital gains tax rate is much higher for other investment
instruments: a 30% short-term capital gains tax (assuming that you fall in the 30%
tax bracket) and a 10% long-term capital gains tax
Easy liquidity:
shares can also be made liquid anytime from anywhere (on sharekhan.com you
can sell as here at the click of a mouse from anywhere in the world) and the
investments can be realized in just two working days .Considering the high
returns, the tax advantages and the highly liquid nature, shares are the best
investment option to create wealth.
PRIMARY MARKET
Company
IPO
Company Owners
allocate shares to individuals and those who get the shares become part owners of the
The depository has agents who are called Depository Participants. In India, there are
over a hundred DPs. Think of it like a bank. The head office, where all the technology
rests and the details of all the accounts are held, is like the depository. The DPs are
like the branches of banks that cater to individuals.
A broker, however, is not similar to a DP. A broker is a member of the stock
exchange and he buys and sells shares for his clients and for himself. A DP, on the
other hand, gives you an account where you can hold those shares.
To get a list of the registered DPs, visit the NSDL and CDSL Web sites.
3. Get a PAN: - The taxman demands that you get yourself a Permanent Account
Number. This is a unique 10-digit alphanumeric number (AABPS1205E, for
example) that identifies and tracks an individual in the taxman's database.
Almost every money transaction demands the use of a PAN.
Whenever a trader / investor buys or sells a security and on the same day before the
market closes, he sells or buys that particular security (in the same quantity), the
transaction is called as square off transaction or a trading transaction. Shares lying in
the T, TS and T are not square off the same day.
Delivery transactions are those transactions which are not squared off at the day end,
and the investor/trader is ready to take / give the delivery of the security.
Charges such as brokerage, service tax on brokerage, STT, stamping charges etc. are
very high on the delivery transactions.
6 Settlement period
Currently the settlement period is T+2. Settlement period i.e. T+2 means one has to
give the delivery of the shares sold within 2 days of the date of the transaction. In case
of purchase transaction, one will get the delivery within 2 days of the date of
transaction.
7 Shares Category:-
The stock exchange has divided the shares into the categories according to the
performance of the company.
8 Auction:-
In case of failure of delivery of shares for sale transaction within the stipulated time
period, the BSE auction those shares as per the rules and regulations.
9 Close Out:-
4. Redistribution of wealth.
5. Corporate governance.
The Exchange has a separate Listing Department to grant approval for listing of
securities of companies in accordance with the provisions of the Securities Contracts
(Regulation) Act, 1956, Securities Contracts (Regulation) Rules, 1957, Companies
b) Developing the research plan: Once the problem is identified, the next step
is to prepare a plan for getting the information needed for the research. The present
study will adopt the exploratory approach wherein there is a need to gather large
amount of information before making a conclusion. If required, the descriptive and
casual approaches may also be used.
d) Analyze the collected information: This involves converting raw data into
useful information. It involves tabulation of data and using statistical measures on
them for developing frequency distributions and calculating the averages and
dispersions.
PROPOSED METHODOLOGY
Methodology of the project starts with:
In the first phase we are trained and they teach us different things
about market.
After that they conduct a mock viva, in this they ask about the real life
problem faced by the customers.
They provide leads and after that we make calls.
Then after that we have to provide details of product and convince
them
Then we have to visit them and get the formed filled from them.
Though the present study aims to achieve the above-mentioned objectives in full
earnest and accuracy, it may be hampered due to certain limitations. Some the
limitations of this study may be summarized as follows:
The primary data is that data which is collected fresh or first hand, and for first
time which is original in nature. Primary data can collect through personal
interview, questionnaire etc. to support the secondary data.
2) Secondary data collection method
Kasturi Ram College of Higher Education
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The secondary data are those which have already collected and stored.
Secondary data easily get those secondary data from records, journals, annual
reports of the company etc. It will save the time, money and efforts to collect the
data. Secondary data also made available through trade magazines, balance sheets,
books etc.
This project is based on primary data collected through personal interview of
head of account department, head of SQC department and other concerned staff
member of finance department. But primary data collection had limitations such as
matter confidential information thus project is based on secondary information
collected through five years annual report of the company, supported by various
books and internet sides. The data collection was aimed at study of working
capital management of the company
OPTIONS NO OF RESPONDENTS
Equity 59
Mutual fund 25
Fixed deposits 9
insurance 7
59
60 EQUITY
50
MUTUAL FUND
Percentage
40
FIXED DEPOSITS
30
25
20 INSURANCE
9
10 7
0
Sector
INTERPRATATIONS
This figure says that most people go for at 1 st EQUITY investment then for
MUTUAL FUND, FIXED DEPOSITS AND INSURANCE. Because equity gives
good return in short time as well as long term as compared to mutual fund.
OPTIONS NO OF RESPONDENTS
Share market 23
Mutual fund 77
23%
77%
This pie chart shows that share market give return 77% as compared to
mutual fund at 23% return. It signifies mostly more people go for share
market as compared to mutual funds.
Options No of respondents
Oneself 24
Broker 36
Eco policies 20
Market research 12
Friends/relatives 8
Any other
40
36
35 Oneself
30 Brokers
24
Percentage
25
20 Eco. Policies
20
Market Ramous
15
10 Friends/Relatives
0
Investment Decisions
OPTIONS NO OF RESPONENTS
YES 42
NO 58
42%
58%
Yes No
That chat is show the satisfaction level of current investment( in share) and
long term investment(mutual fund) than here shows that the satisfaction level in
current investment (shares) is 58% and satisfaction in long term investment
(mutual fund) is 42%.
OPTIONS NO OF RESPONDENTS
Financial potions 24
Current market position 36
Goodwill 20
Future prospects 12
Any other 08
30
Current market Positions
25 24
Percentage
20
20 Goodwill
15
12 Future Prospects
10 8
Any other
5
0
factors
INTERPRATATIONS:
What factors are necessary before the investment in company or in firm
is show in this bar graph. It is evident that in the current market position
accounts for 36% , most investors go for investment after seeing the
current market positions and after that the financial position of
Kasturi Ram College of Higher Education
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company which is at 24%, then goodwill of company at 20%,future
prospects at 12%,and any other factors at 8%.
5paise 40 13.23%
sharekhan 70 23.34%
motilaloswal 11 3.53%
icicidirect 61 20.05%
hdfc 15 5.01%
indiabulls 38 13.06%
kotak 19 6.33%
Voters: 300.
INTERPRATATIONS:
Share khan earn more brokerage in share trading as compared to all the leading
firms and companies and share khan get 284 vote and 23.34% regarding to
other firms and companies earning that is shown that satisfied level, share khan
strike rate all things are shown share khan ‘s profit and market share.
At last I can say that money invested in this rise and fall market it is
better to invest in mutual funds for those investors who are risk adverse and for
those who are risk taker it is better for them to invest in share market.
We can also say that in share market customers is decision maker while
in mutual funds investors is totally dependent on assets management company,
investors do not have active control on money invested by him/her.
The company should pay attention towards the proper and efficient
utilization of working capital.
The company can reduce the time for purchase order. The buffer should be
maintained in case of emergency. Insurance should be covered especially
fire in case of transit journey also.
www.sharekhan.com
www.mutualfunds.com
www.amfi.com
www.google.com
www.altavista.com
www.dogpil.com