A

SUMMER TRAINING REPORT

ON
Study of systematic Investment plans
AT

KARVY STOCK BROKING DELHI

Submitted in partial fulfilment for the award of two years full
time Masters in Business Management
(2015-2017)

Name of the Guide:

Submitted by:

Dr.PoojaDevija

VINEK SETHI

(2015-2017)

FACULTY OF MANAGEMENT
Pacific Academy of Higher Education and Research
Pacific Hills,Airport Road,
Pratapnagar Extension,
Udaipur

Declaration
I Vinek sethi.student of Pacific Institute of Management, Study of sip At karvy stock Broking
Delhi hereby declare that the major research project work with the title of information
contained in this submission is true, complete and correct to the best of my knowledge and
belief
I also declare that this project is the record of authentic work carried out by me during the
academic year 2015-17 and has not been submitted to any other university or institute
towards the award of any degree.
An Attempt has been made by me to provide all relevant and important details regarding the
topic to support the theoretical edifice with concrete research evidence. This will be helpful to
clean the fog surrounding the various aspect of the topic.

Date:
Place: Udaipur

(Signature)
Vinek sethi

Preface Including Summary

Indias economy is highly developing. The development is taken place due to the growth in
the financial system. This financial system provides the background to various investors
regarding varied options to invest. Thus, development of the economy depends on how these
investors invest for the well being in long run.
As financial markets become more sophisticated and complex, investors need a financial
intermediary who provides the required knowledge and professional expertise on successful
investing. Mutual Funds represent perhaps the most appropriate investment opportunity for
investors. No wonder the concept of Mutual Fund was initially developed in the U.S. market,
but the entry of the concept in the Indian Financial Market was in the year 1964 with the
formulation of the UTI, at the initiative of the RBI and Govt. of India.
For most people, money is a delicate matter and when it comes to investing they are wary.
Simply because there are many investment options out there, each out promising the other.
An important question facing many investors is whether to invest in Banks, National Savings,
Post office, Non-banking finance companies, Fixed deposits, Shares etc. or to invest
distinctively in Mutual Funds.

I have observed that approximately 40% of the people are unaware of Trading but most of
them are interested to know about trading. They are also interested to work with KARVY if
sufficient information is provided to them about Trading and KARVY.
People from service class prefers safety of income plus the regular income as well as tax
benefits while on the other hand Professional and Businessman focus on high return with
some risk.

ACKNOWLEDGEMENTS
First of all I would like to express my profound veneration and deep sense of gratitude to my
research supervisor Dr.PoojaDevija for instilling confidence in me through his inspirational
words and providing me with invaluable comments and criticism on many issues. I will
always be indebted to his for his constantly rendering timely advice and sparing valuable
time. I will always be indebted towards you Maam for giving me moral support which i
required the most throughout my thesis work.
I must express my gratitude towards Karvy Stock Broking Ltd, Delhifor giving me an
opportunity to work with on this report.
And of course I am very much thankful to our honorable (Regional Acquisition
Head)Mr.Pradipkumar Singh for giving me opportunity and his guidance help me through
out preparing this report. He has also provided me a valuable suggestions and excellence
guidance about this training, which proved very helpful to me to utilize my theoretical
knowledge in practical field.
At last I am also thankful to my friends, to all known and unknown individuals who have
given me their constructive advise, educative suggestion, encouragement, co-operation and
motivation to prepare this report.

Date:
Place: Udaipur

(Signature)
Vinek Sethi

Introduction of topic
Mutual funds: An Introduction
Mutual funds are collective saving andinvestmentvehicleswhere saving of small (or
sometimes big) investors are pooled together to invest for their mutual benefit and returns
distributed proportionately A mutual fund is an investment that pools your money with the
money of an unlimited number of other investors. In return. You and the other investors each
own shares of the fund. The funds assets are invested according to an investment objective
into the funds portfolio of investments. Aggressive growth fund seeks long-term capital
growth by investing primarily in stocks of fast-growing smaller companies or market
segments. Aggressive growth fund is also called capital appreciation funds
There are a lot of investment avenues available today in the financial market for an investor
with an investable surplus. He can invest in bank deposits, corporate debenture, and bonds
where there is low risk but low return. He may invest in stock of companies where the risk in
high and the returns are also proportionately high. The recent trends in the stock market have
shown that an average retail investor always lost with periodic bearish tends. People began
opting for portfolio managers with expertise in stock market who would invest on their
behalf. Thus we had wealth management service provided by many institutions. However
they proved too costly for wealth management service provided by many institutions.
However they proved too costly for a small investor. These investors save found a good
shelter with the mutual fund.
A mutual fund is a company that brings together money from many people and invests it in
stocks, bonds or other assets. The combined holding of stocks, bonds or other assets the fund
has is known as its portfolio. Each investor in the fund owns shares, which represent a part of
these holding.

Introduction of Industry
The financial markets in India are in the process of maturing. The markets witnessed many
structural changes in the years gone by primarily due to the market regulators proactive
approach to the changes in the global scenario as well as to meet the needs of domestic
investors .The RBI has carried out major reforms in the Indian financial markets in the last
few years primarily by reducing Cash Reserve ratio by 4% over three years and Bank Rate by
5% over five years. It is due to measures like these that the Indian economy is currently
showing fundamental robustness, with the GDP expected to grow by almost 8%. With rising
exports and stable inflation of around 5%, the foreign exchange reserves are at an all time
high of $118 billion. The interest rates in the country are at record lows and have led to an
increase in credit flow to the commercial sector. The equity markets have passed through a
tumultuous phase in the last 3 years. The improving macro-economic fundamentals of the
Indian economy have led the market players to expect a bright future. During the year, the
equity markets around the world are showing good performance. However the markets in
India outperformed the world major scripts showed around more than 75% growth in last 12
months. The year began with resumption of peace process with Pakistan and end of war in
Gulf. The market also has welcome robust increase in agriculture production with more-thannormal monsoons. Most of the groundwork for the disinvestment completed over the last few
years, the last Government had started disinvestments and new government has already
acquired shape and started it is not reluctant of divestment.29The debt markets have
witnessed a rally for over 2 years and now seem to be stabilizing. The measures to deepen
and widen the debt markets continued throughout the year. A key step in developing the
markets was the launch of Negotiated Dealing System (NDS). NDS allows electronic bidding
in primary markets, thereby bringing about transparency in trading, electronic settlement of
trades and better monitoring and controls. Issuances of a 30-year paper, floaters ranging from
5 to 15 years and securities with call and put options by the government will also go a long
way in deepening the markets. In a bid to increase the retail participation, non-competitive
bidding is being encouraged by the RBI.

About KARVY
Karvy was started by a group of five chartered accountants in 1979 at Hydrabad. At initial
stage it was very small in size. It was started with a capital of Rs. 1,50,000.
In starting it was only offering auditing and taxation services. Later, on The partners decided
to offer, other than the audit services, value added services like Financial Product
Distribution, Investment Advisory Services, Demat Services, Corporate Finance, Insurance
etc to their clients. The first firm in the group, Karvy Consultants Limited was incorporated
on 23rd July, 1983. In a very short period, it became the largest Registrar and Transfer Agent
in India. This business was spun off to form a separate joint venture with Computershare of
Australia, in 2005. Karvys foray into stock broking began with marketing IPOs, in 1993.
Within a few years, Karvy began topping the IPO procurement league tables and it has
consistently maintained its position among the top 5. Karvy was among the first few
members of National Stock Exchange, in 1994 and became a member of The Stock
Exchange, Mumbai in 2001.
In January 1998, Karvy became first Depository Participant in Andhra Pradesh.
Today Karvy is among the top 5 Depositary Participant in India.
While the registry business is a 50:50 Joint Venture with Computershare of Australia, we
have equity participation by ICICI Ventures Limited and Barings Asia Limited, in Karvy
Stock Broking Limited. For a snapshot of our organization structure, please click here.
Karvy has always believed in adding value to services it offers to clients. A top-notch
research team based in Mumbai and Hyderabad supports its employees to advise clients on
their investment needs. With the information overload today, Karvys team of analysts help
investors make the right calls, be it equities, mf, insurance.
On a typical working day Karvy:
Has more than 25,000 investors visiting our 575 offices.
Publishes / broadcasts at least 50 buy / sell calls
Attends to 10,000+ telephone calls
Mails 25,000 envelopes, containing Annual Reports, dividend cheques /
advises, allotment / refund advises.
Executes 150,000+ trades on NSE / BSE
7

 Executes 50,000 debit / credit in the depositary account

KARVY Stock Broking Limited is a member of:

National Stock Exchange (NSE)

Bombay Stock Exchange (BSE)

Hyderabad Stock Exchange (HSE)

PRODUCT OF KARVY
Now the Karvy groups brings this expertise to investors, with KARVY IZONE +. It is a
powerful Expert Advisory based trading system for those who are relatively new to online
investing. A unique integrated account, which integrates your securities, online stock-broking,
and Demat accounts. A comprehensive trading service, which allows you to invest in equities,
mutual funds, SIP, commodity and derivatives. KARVY I -Zone+ trading platform allows you
the flexibility of trading on any internet capable system, with access to both the NSE and
BSE.

KARVY I-ZONE +
ADVANTAGE---1.
2.
3.
4.
5.
6.
7.

Free online Stock-Broking and attractive Margin funding option available

Free Demat account
Free online Commodities Broking account
Option to buy unlimited mutual funds or SIP without any transaction charges
Loan against securities
Regular Portfolio Statement for better planning of future investment
Free financial advice to better distribute your assets between Mutual Fund, Equity,
Debt, Commodity and Insurance.

Free subscription to KARVY Finapolis Magazine

RESEARCH METHODOLOGY
8

OBJECTIVES OF THE STUDY

The purpose of choosing this project is to know:

Investors option for entry into a Mutual Fund.

(a) Lump sum

(b) SIP

Comparative analysis between SIP and Lump sum.

Procedure for investment in SIP.

SCOPE OF THE STUDY

Since the summer internship training is done in DELHI so the universe taken is from DELHI
only.
This project will help existing/prospective investor to understand what the various mode of
investment in Mutual Fund are and why Systematic Investment Plan gives better returns than
Lump sum. So that investors can do better use of their hard earned money to earn more profit.
TYPES OF DATA
There are two types of data:
1. Primary Data
2. Secondary Data
Primary Data is that data which is collected by the researcher as per his/her needs.
Secondary Data is that data which is collected through references as websites, journals,
books, newspapers, magazines etc.
SOURCES OF DATA COLLECTION
The data for research is collected in two ways:

Primary source

Secondary source

Primary Data is collected through Questionnaire and interviewingthe investors directly.

Secondary data which is used just for reference, is collected through magazines,
FACTSHEET of ICICI PRU AMC namely The PRUDENT.

RESEARCH DESIGN
This research is Explorative and conclusive in nature because it aims to collect the data
about the behavior of investors in which way they invest in Mutual Funds. The research
approach used is survey based and the analysis is largely based on the primary data.
RESEARCH INSTRUMENT
Structured questionnaire: open- ended and close- ended.
CONTACT METHOD
Personal interview
RESEARCH APPROACH
Any methodology includes the overall research design, the sampling procedure and data
collection method. The methodology adopted by me for purpose of finding the investment
behavior of investors was DIRECT SURVEY METHOD.

10

ANALYSIS
Q 1: In which Financial Instrument do you invest into?
Ans:
Financial Instrument
Mutual Funds
Bond
Online Trading
Derivatives

Investment in %
76
15
7
2

Investment Criteria in Financial Insrument

7

2
Mutual fund

15

Bond
Online trading
76

Derivatives

Interpretation: From above pie chart, I have analysed that 75% of investors invest in Mutual
Funds. Rest of the investors invest in Bond (i.e. 16%), Online Trading (i.e. 7%) and
Derivatives (i.e. 2%).

11

Q 2: By structure in which type of schemes have you invested?

Ans:
Type of schemes on the Basis of Structure
Open-ended funds
Close-ended funds
Interval Funds

Investment in %
66
22
12

Type of schemes preferred on Basis of Structure

12
Open Ended Fund

22

Close Ended Fund

66

Interval Fund

Interpretation: The above pie chart depicts that 66% investors invest in Open-ended funds,
22% in close-ended funds and 12% in interval funds.

12

Q 3: By investment objective in which schemes have you

invested?
Ans:
Type of schemes on the Basis of Investment Objective
Growth Schemes
Income Schemes
Balanced Schemes

Investment in %
55
13
32

Type of schemes on the Basis of Investment Objective

32

Growth scheme
55

Income scheme
Balanced scheme

13

Interpretation: From above pie chart, I conclude that there are 55% investors who invest in
Growth Schemes, 13% investors invest in Income Schemes and 32% investors invest in
Balanced Schemes.

13

Q 4: In which type of fund you want to invest?

Ans:
Types of Funds
Index Fund
Tax saver Fund
Sectorial Fund

Investment in %
41
15
44

Type of fund in Which Investor Invest

41

44

Index Fund
Tax Saver
Sectorial Fund

15

Interpretation: The above chart depicts that the maximum no. of investors i.e.41% investors
invest in Sectorial Funds, 44% in Index funds and 15% in Tax saver funds.

Q 5: Did you repeat your investment after the initial investments?

14

Ans:
Repeatition of Investment
Yes
No

Investers In %
68
32

Repetition of Investment

32
Yes
No
68

Interpretation: The above pie chart depicts that 68% of investors invest again after the
initial investments.

Q 6: How many investors invested in SIP, Lumpsum or Both?

15

Ans:
Investment in %

Type of
Investment
SIP
Lumpsum
Both

55
10
35

Type of Investment in %

35

SIP
55

Lumpsum
Both

10

Interpretation: From above chart I have analysed that 55% investors have invested in
Systematic Investment Plan, 10% in Lumpsum and 35% in both the category.

CONCLUSION

16

FINDINGS :
Our findings during the training with Karvy Stock Broking Limited, DELHI
Companys Plan was good on the following ground:

Karvy is a top-ranked company listed with NSDL and CDSL, provide

trading through both NSE & BSE.

Karvy is providing software to their prospective sub broker and

Remissers.

Cheque updating in 15 mins. And the credit limit up to 10 times.

There are some more points

Mutual Fund Advisors give emphasis on mutual funds than other investment
options.
Mutual Funds have given a new direction to the flow of personal saving and
enable small and medium investors in remote rural and semi urban areas to
reap the benefits of the stock market investment. Indian Mutual Funds are thus
playing a very important developmental role in allocation of scares resources in
the emerging economy.
Karvy is not able to provide sufficient services to the investors due to
unawareness among advisors regarding services.
The awareness level of investor is low in advisors are interested in dealing in
mutual fund.
Very less advisors are knowing about services provided by karvy.

RECOMMENDATION AND SUGGESTIONS:

17

Though the Karvy Stock Broking Limited have a very good ascribed plan with exclusive
band of opportunities but as nothing is free from the hurdles therefore there are few
shortcomings which I felt makes Karvy fail to achieve its target.
.

There is high potential market for Mutual Fund Advisors in DELHI city, but
this market needs to be explored as investors are still hesitated to invest their
money in Mutual Funds.

In DELHI investors have inadequate knowledge about Mutual Funds, So

proper Marketing of various schemes is required, company should arranges
more and more seminars on Mutual Funds.

Awareness of MF services among the investors are very low so Asset

Management company needs proper marketing of their all services by
advertising, distribution of pamphlet, arranging seminars etc.

Most of advisors are not interested in dealing of Mutual Funds because they get
very low commission.

Company should also provide knowledge about the growth rate and the
expected growth rate of Mutual Fund industry in India.

Most of people aware of life insurance, NSC and PPF for tax saving so,
company should market various tax saving schemes of Mutual Funds and their
benefits.

The interface among the investors and the Mutual Fund Companies is the
agents, so the agents should have proper knowledge about Mutual Funds as
well as market so that they can help investors in their investment decisions.
The quality of agents performance and investors trust on them can be improved
only if they are permanent in nature.

18

BIBLIOGRAPHY:Websites:
www.karvy.com
www.indiacorporateadvisor.com
www.amfiindia.com
www.nsdl.co.in
www.wikipedia.com
www.moneycontrol.com
Books Referred: -

Research Methodology by C.R. KOTHARI

Mutual Funds by Akhilesh

Magazines & Journals Referred: Business Today

ICICI Prudential AMCs Fact sheet-THE PRUDENT

19

QUESTIONNAIRE
(Hello, I am VINEK SETHI.I need your spare time to fill up the questionnaire, as this is the
part of my Summer Internship Training under MBA curriculum.)
NAME: ______________________________________ __________________
AGE:
0-18_____

18-36_____

GENDER:
OCCUPATION:

36-54_____
Male
Female

54-72______

72 ABOVE______

[ ]
[ ]

Businessman
[ ]
Pvt. Employee
[ ]
Govt. Employee [ ]
Professional
Student
[ ] Other (specify):________

[ ]

CONTACT NO: __________________________________

Q1. In which of these Financial Instruments do you invest into?
Shares
Mutual Funds
Bonds
Derivatives
Gold
Property
NSC
Bank Deposit
Q2 .By structure in which type of schemes did you invested?
Open - Ended Schemes
[ ]
Close - Ended Schemes
[ ]
Interval Schemes
[ ]
Q3.By investment objective in which type of schemes have you invested?
Growth Schemes
[ ]
Income Schemes
[ ]
Balanced Schemes
[ ]
Q4.In which type of funds you want to invest?
Tax saver funds
[ ]
Index funds
[ ]
Sectorial funds
[ ]
20

PPF

Q5. Did you repeat your investment after your initial investments?
Yes

No

Q6. What percentage of your earnings do you invest in Mutual Funds?

Up to 10%
Up to 25%
Up to 50%
Above 50%
Q7. In which you have invested?
SIP
Lumpsum
Q8. What is your allocation criterion?
<1000
1000-3000

Both

3000-5000

Q9. For what time period you have invested?

<= 1 yr.
<= 2 yr.
<= 3 yr.
<= 4 yr.

<= 5 yr.

Q10. Which has given you more profit?

SIP
Lumpsum
Q11. Are you satisfied with the facilities provided by KARVY?
No
[ ]
Yes [ ]
Q12. What is your opinion on KARVY overall performance?
EXCELLENT
[ ]
GOOD
[ ]
AVERAGE
[ ]
UNSATISFIED [ ]
Q13.In what areas do you want KARVY has to improve?
E.g. Customer service
Agents training
Others

(Thanks for your kind support)

21

>5000

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