VISVESVARAYA TECHNOLOGICAL UNIVERSITY

Jnana Sangama, Belgaum – 590014

An Organization Study on

“WAY2WEALTH SECURITIES PVT LTD.,

MALLESWARAM BRANCH, BENGALURU”.

In partial fulfillment of the requirement for the award of

Masters of Business Administration

Submitted by
By

MS. xxxxxxxxxxxxxxx
REG.NO. xxxxxxxxxx
Internal Guide
PROF. SRILAKSHMI V

SIR M VISVESVARAYA INSTITUTE OF TECHNOLOGY,

Krishnadevaraya Nagar, Hunasamaranahalli, International Airport Road,
Bangalore - 562157

1
INDUSTRY PROFILE:

A common reserve is a trust that pools the investment funds of various speculators who share a
typical money related objective. The cash hence gathered is put resources into capital market
instruments, for example, offers, debentures, and different protections. The pay earned through
these ventures is shared by its unit holders in relation to the quantity of units claimed by them.
Along these lines a Mutual Fund is the most reasonable speculation for the normal man as it
offers a chance to put resources into an expanded, expertly oversaw container of protections at a
moderately minimal effort.

Shared assets are to make an extension between close to home venture organization, Investors
and corporate goliaths. Common reserve speculations are for retail financial specialists or
individual speculators, the individuals who don't think about the securities exchange. The idea of
shared assets was imagined to pool assets of the little financial specialists and sends the
equivalent in the capital market through investment in the value and other obligation instrument.

The Indian shared supports industry is seeing a quick development because of infrastructural
advancement, increment in close to home money related resources, and ascends in outside
interest. With the developing danger hunger, rising salary, and expanding mindfulness, shared
assets in India are turning into a favored speculation choice contrasted with other venture
vehicles like Fixed Deposits (FDs) and postal investment funds that are viewed as protected yet
give nearly low returns, as per "Indian Mutual Fund Industry". Common store industry has seen
a ton of changes in recent years with global organizations coming into the nation, acquiring their
expert ability in overseeing finances around the world. In the previous hardly any months there
has been a solidification stage going on in the common reserve industry in India. Presently
financial specialists have a wide scope of Schemes to browse contingent upon their individual
profiles. Common store industry has developed as one of the most unique section of the Indian
money related framework. This has been made conceivable because of the thorough strategy
activities of the administration.

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The shared store industry in India began in 1963 with the development of Unit Trust of India
(UTI) at the activity of the Reserve Bank of India (RBI) and the Government of India. The target
at that point was to pull in little financial specialists and acquaint them with advertise
speculations. From that point forward, the historical backdrop of shared assets in India can be
comprehensively partitioned into six particular stages.

Stage I (1964-87): Growth Of UTI:

In 1963, UTI was built up by an Act of Parliament. As it was the main element offering common
assets in India, it had an imposing business model. Operationally, UTI was set up by the Reserve
Bank of India (RBI), yet was later delinked from the RBI. The main plan, and for long one of the
biggest propelled by UTI, was Unit Scheme 1964.

Later during the 1970s and 80s, UTI began developing and offering various plans to suit the
necessities of various classes of speculators. Unit Linked Insurance Plan (ULIP) was propelled in
1971. The main Indian seaward reserve, India Fund was propelled in August 1986. In total terms,
the investible finances corpus of UTI was about Rs 600 crores in 1984. By 1987-88, the benefits
under administration (AUM) of UTI had grown multiple times to Rs 6,700 crores.

The year 1987 denoted the passage of other open segment common assets. With the opening up
of the economy, numerous open segment banks and foundations were permitted to build up
common assets. The State Bank of India set up the first non-UTI Mutual Fund, SBI Mutual Fund
in November 1987. This was trailed by Canbank Mutual Fund,LIC Mutual Fund, Indian Bank
Mutual Fund, Bank of India Mutual Fund, GIC Mutual Fund and PNB Mutual Fund. From 1987-
88 to 1992-93, the AUM expanded from Rs 6,700 crores to Rs 47,004 crores, about multiple
times. During this period, financial specialists indicated a checked enthusiasm for common
assets, dispensing a bigger piece of their reserve funds to interests in the assets.

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Stage III (1993-96): Emergence of Private Funds:

Another period in the shared store industry started in 1993 with the authorization conceded for
the passage of private segment reserves. This gave the Indian financial specialists a more
extensive decision of 'finance families' and expanding rivalry to the current open segment
reserves. Significantly outside reserve the executives organizations were likewise permitted to
work shared assets, the greater part of them coming into India through their joint endeavors with
Indian advertisers.

The private assets have acquired with them most recent item developments, speculation the
board methods and financial specialist adjusting innovations. During the year 1993-94, five
private area support houses propelled their plans followed by six others in 1994-95.

Stage IV (1996-99): Growth And SEBI Regulation:

Since 1996, the common reserve industry scaled more current statures as far as assembly of
assets and number of players. Deregulation and advancement of the Indian economy had
acquainted rivalry and furnished catalyst with the development of the business.

A far reaching set of guidelines for every common store working in India was presented with
SEBI (Mutual Fund) Regulations, 1996. These guidelines set uniform norms for all assets. Past
UTI willfully embraced SEBI rules for its new plans. Thus, the financial plan of the Union
government in 1999 made a major stride in absolving all common store profits from personal
assessment in the hands of the speculators. During this stage, both SEBI and Association of
Mutual Funds of India (AMFI) propelled Investor Awareness Program planned for instructing
the financial specialists about contributing through MFs.

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Stage V (1999-2004): Emergence of a Large and Uniform Industry:

The year 1999 denoted the start of another stage throughout the entire existence of the common
store industry in India, a period of noteworthy development as far as both sum activated from
financial specialists and resources under administration. In February 2003, the UTI Act was
canceled. UTI no longer has an uncommon lawful status as a trust built up by a demonstration of
Parliament. Rather it has received a similar structure as some other store in India - a trust and an
AMC.

UTI Mutual Fund is the current name of the recent Unit Trust of India (UTI). While UTI worked
under a different law of the Indian Parliament prior, UTI Mutual Fund is currently under the
SEBI's (Mutual Funds) Regulations, 1996 like all other shared assets in India.

The rise of a uniform industry with a similar structure, tasks and guidelines make it simpler for
wholesalers and speculators to manage any store house. Somewhere in the range of 1999 and
2005 the size of the business has multiplied as far as AUM which have gone from above Rs
68,000 crores to over Rs 1,50,000 crores.

The year 1987 denoted the passage of other open segment common assets. With the opening up
of the economy, numerous open segment banks and foundations were permitted to build up
common assets. The State Bank of India set up the first non-UTI Mutual Fund, SBI Mutual Fund
in November 1987. This was trailed by Canbank Mutual Fund,LIC Mutual Fund, Indian Bank
Mutual Fund, Bank of India Mutual Fund, GIC Mutual Fund and PNB Mutual Fund. From 1987-
88 to 1992-93, the AUM expanded from Rs 6,700 crores to Rs 47,004 crores, about multiple
times. During this period, financial specialists indicated a checked enthusiasm for common
assets, dispensing a bigger piece of their reserve funds to interests in the assets.

5
Stage III (1993-96): Emergence of Private Funds:

Another period in the shared store industry started in 1993 with the authorization conceded for
the passage of private segment reserves. This gave the Indian financial specialists a more
extensive decision of 'finance families' and expanding rivalry to the current open segment
reserves. Significantly outside reserve the executives organizations were likewise permitted to
work shared assets, the greater part of them coming into India through their joint endeavors with
Indian advertisers.

The private assets have acquired with them most recent item developments, speculation the
board methods and financial specialist adjusting innovations. During the year 1993-94, five
private area support houses propelled their plans followed by six others in 1994-95.

Stage IV (1996-99): Growth And SEBI Regulation:

Since 1996, the common reserve industry scaled more current statures as far as assembly of
assets and number of players. Deregulation and advancement of the Indian economy had
acquainted rivalry and furnished catalyst with the development of the business.

A far reaching set of guidelines for every common store working in India was presented with
SEBI (Mutual Fund) Regulations, 1996. These guidelines set uniform norms for all assets. Past
UTI willfully embraced SEBI rules for its new plans. Thus, the financial plan of the Union
government in 1999 made a major stride in absolving all common store profits from personal
assessment in the hands of the speculators. During this stage, both SEBI and Association of
Mutual Funds of India (AMFI) propelled Investor Awareness Program planned for instructing
the financial specialists about contributing through MFs.

6
Stage V (1999-2004): Emergence of a Large and Uniform Industry:

The year 1999 denoted the start of another stage throughout the entire existence of the common
store industry in India, a period of noteworthy development as far as both sum activated from
financial specialists and resources under administration. In February 2003, the UTI Act was
canceled. UTI no longer has an uncommon lawful status as a trust built up by a demonstration of
Parliament. Rather it has received a similar structure as some other store in India - a trust and an
AMC.

UTI Mutual Fund is the current name of the recent Unit Trust of India (UTI). While UTI worked
under a different law of the Indian Parliament prior, UTI Mutual Fund is currently under the
SEBI's (Mutual Funds) Regulations, 1996 like all other shared assets in India.

The rise of a uniform industry with a similar structure, tasks and guidelines make it simpler for
wholesalers and speculators to manage any store house. Somewhere in the range of 1999 and
2005 the size of the business has multiplied as far as AUM which have gone from above Rs
68,000 crores to over Rs 1,50,000 crores.

7
In the previous couple of years, the money related administrations industry has been cleared by a flood of
progress. In the saving money segment, the challenge warmed up with the passage of private segment
players and the remote banks. Deregulation and globalization brought about expanded challenge that re-
imagined the conventional methods for working together. The protection stone monument, extra security
Corporation, which was heretofore shielded from rivalry, all of a sudden gets itself powerless. In the
advantage the executives showcase, numerous players are competing with one another for a higher offer
of the client's wallet.

The emergency in UTI, trick in some co-agent banks has prompted a disintegration of trust and the client
today is more suspicious than any time in recent memory. To add to this rundown of troubles we have the
financial subsidence and the ongoing association spending that does not give any motivation to spare. The
change speaks to the two chances and hazards. The individuals who adjust succeed the individuals who
don't, die. Monetary administrations advertisers have come to understand that change is unavoidable and
to prosper and develop they need to keep pace with change.

Be that as it may, not every one of the India money related administrations players have been discovered
snoozing. A portion of the more forceful players driven by ICICI have master effectively grasped change
and realigned their systems to the new condition. A client driven methodology, an emphasis on brand
building, it-empowered arrangements, all connotes that these organizations are quick adjusting to the
evolving condition. To stop a long story, money related administration organizations have at last
understood the requirement for a thorough promoting procedure. They have understood that upper hand
will guarantee on the off chance that they can construct a solid brand, secure the clients a long haul client
relationship, misuse new dissemination channels and use the advances in it.

At last, as in different businesses, innovation is reclassifying the principles of the diversion in this
industry also. Innovation empowered arrangement are never again an extravagance, they have turned into
a business basic.

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BRAND EQUITY AND DRIVERS

As indicated by the Nielsen Mutual Fund Monitor, Indian speculators care progressively about the Fund's
pledge to the Indian market than its universal legacy. It is the mindfulness about the store and positive
brand relationship regarding reserve execution and trust that drive the Mutual Fund class.

The complete mindfulness has stayed consistent crosswise over a large portion of the MF brands.
Dependence has supplanted UTI to develop this year as No.1 as far as best of mind mindfulness (22%
versus 13 % a year ago). 33% of the respondents hold Reliance MF as their present venture. Following
Reliance are ICICI Prudential, SBI and HDFC. A year ago UTI and SBI were the favored decisions for
speculation, while this year Reliance and ICICI Prudential have taken the openings.

Monetary SERVICES MARKETING

In this very directed and secured condition, the players in the budgetary administrations industry have
considered marking to be only methods for acknowledgment and making mindfulness. Subsequently, the
industry has been famously missing solid brands. The rise of solid brands like ICICI, Citibank, HSBC,
ABN-AMRO bank is an ongoing wonder. This plainly demonstrates a huge change in the technique of
these associations. They are sustaining the brand as the following wellspring of upper hand and have
made it a necessary piece of their corporate system. A quantum jump is happening in the impact of brands
in money related administrations. Uber merger and worldwide deregulation is driving the ascent of
worldwide brands.

Marking is changing the manner in which money related administrations are conveyed, similarly as most
likely as IT frameworks are changing the manner in which banks do their business and helping new banks
to set up keeping money without branches. How that quantum jump is reflected in the manner in which
money related administrations organizations are characterizing and dealing with their brands and their
organizations for what's to come? Monetary establishments around the globe trust their central client
mark is utilized and oversaw, both remotely and inside. The arrangement fortifies the undeniably broadly
held view that the brand is quick turning into the major focused resources for organizations. Be that as it
may, all the more imperatively is the job of the

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brand inside the organization of business. It is changing radically and the way where associations work is
evolving in this manner.

Though some since a long time back settled banks and protection offices despite everything watch their
picture just as a manual for care and affirmations, the new members and those associations that are
significantly changing themselves put the brand at the point of convergence of their corporate procedure.
This infers they are changing all of their correspondences, their assignments and their systems to their
exercises and their structures to their picture crucial characteristics and endeavoring to make most of their
laborers convincing priests for their picture. They bear witness to that imprint represents all of that makes
them unprecedented, so they are endeavoring to ensure that their peculiarity is transmitted in the
aggregate of their activities.

There are various headings a cash related organizations association can go today. In various endeavors it
is a lot of recognized that putting that mark at the point of convergence of corporate procedure is essential
to advance, BMW, Coca cola being certifiable models. Fiscal organizations associations by and by take
that line and are endeavoring to make it go. Regardless, notwithstanding they have some best
methodology.

SUBJECT BACKGROUND OF THE RESEARCH TOPIC

A common store is just the interfacing length or a fiscal go-between that empowers a social affair of
theorists to pool their money along with a fated endeavor objective. The common store will have a hold
overseer who is accountable for placing the collected money into express protections (stocks or
securities). At the point when you put assets into a typical store, you are buying units or parts of the basic
save and as such on contributing transforms into a financial specialist or unit holder of the save.

10
Mutual resources are considered as a champion among the best available hypotheses as appear differently
in relation to others they are cost beneficial and besides easy to place assets into, thusly by pooling money
together in a typical store, monetary experts can purchase stocks or securities with much lower trading
costs than if they endeavored to do it isolated. However, the best favored point of view to shared
resources is widening, by constraining risk and increasing returns.

Thought OF MUTUAL FUNDS

A Mutual Fund is a trust that pools the hold assets of different theorists who share an ordinary cash
related target. The money thusly accumulated is then placed assets into capital market instruments, for
instance, offers, debentures and various protections. The pay earned through these hypotheses and the
capital appreciation recognized is shared by its unit holders in degree to the amount of units controlled by
them. Along these lines a Mutual Fund is the most proper endeavor for the normal man as it offers an
opportunity to place assets into a separated, expertly administered holder of protections at a decently
negligible exertion. The stream chart underneath depicts extensively the working of a typical store:

Idea OF MUTUAL FUNDS

A Mutual Fund is a trust that pools the reserve funds of various speculators who share a typical money
related objective. The cash in this manner gathered is then put resources into capital market instruments,
for example, offers, debentures and different protections. The pay earned through these speculations and
the capital gratefulness acknowledged is shared by its unit holders in relation to the quantity of units
claimed by them. In this way a Mutual Fund is the most reasonable speculation for the normal man as it
offers a chance to put resources into an expanded, expertly oversaw bushel of protections at a moderately
minimal effort. The stream graph underneath portrays extensively the working of a common reserve:

11
 Mutual Fund Operation Flow Chart

Working of a mutual fund:

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A common reserve is set up by a support. Be that as it may, the support can't run the store legitimately.
He needs to set up two arms: a trust and Asset Management Company. The trust is relied upon to
guarantee reasonable business practice, while the AMC deals with the cash.

The shared reserve gathers cash legitimately or through agents from financial specialists. The cash is put
resources into different instruments relying upon the goal of the plan. The salary created by selling
protections or capital valuation for these protections is given to the financial specialists with respect to
their interest in the plan. The ventures are separated into units and the estimation of the units will be
reflected in Net Asset Value or NAV of the unit. NAV is the market estimation of the benefits of the plan
short its liabilities. Per unit NAV is the net resource estimation of the plan partitioned by the quantity of
units extraordinary on the valuation date. Common store organizations give every day net resource
estimation of their plans to their speculators. NAV is significant, as it will decide the cost at which you
purchase or reclaim the units of a plan. Contingent upon the heap structure of the plan, you need to pay
section or leave load.

Kinds OF MUTUAL FUND SCHEMES

Wide assortment of Mutual Fund Schemes exists to oblige the requirements, for example, monetary
position, hazard resistance and return desires and so on. The table beneath gives an outline into the
current kinds of plans in the Industry.A mutual fund is set up by a sponsor. However, the sponsor cannot
run the fund directly

By Structure

 Open - Ended Schemes

 Close - Ended Schemes
 Interval Schemes

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By Investment Objective

 Growth/Equity Schemes
 General Purpose
 Income/Debt Funds
 Money Market
 Guilt Funds
 Balanced Schemes

Other Schemes

 Tax Saving Schemes

 Special Schemes:
1. Sector Specific Schemes
2. Index Schemes

Open Ended Schemes: The units offered by these plans are ready to move and repurchase on any
business day at NAV based costs. Subsequently, the unit capital of the plans continues changing
every day. Such plans in this way offer exceptionally high liquidity to speculators and are getting
progressively well known in India. It would be ideal if you note that an open-finished reserve
isn't obliged to continue selling/giving new units consistently, and may quit giving further
membership to new speculators. Then again, an open-finished reserve once in a while denies to
its speculator the office to recover existing units.

Close Ended Schemes: The unit capital of a nearby finished item is fixed as it makes a one-time
offer of fixed number of units. These plans are propelled with New Fund Offer (NFO) with an
expressed development period after which the units are completely recovered at NAV connected
costs. In the meantime, speculators can purchase or sell units on the stock trades where they are
commonly recorded. Not at all like open-finished plans, the unit capital in Close-finished plans

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ordinarily stays unaltered. After an underlying shut period, the plan may offer direct repurchase
office to the financial specialists. Close-finished plans are normally more illiquid when
contrasted with open-finished plans and subsequently exchange at a rebate to the NAV. This
markdown tends towards the NAV closer to the development date of the plan.

Interim Schemes: These plans join the highlights of open-finished and Close-finished plans.
They might be exchanged on the stock trade or might be open available to be purchased or
reclamation during pre-decided interims at NAV based costs.

Development/Equity Schemes: These plans, additionally generally called Growth Schemes, try
to put a greater part of their assets in values and a little segment in currency showcase
instruments. Such plans can possibly convey better returns over the long haul. Be that as it may,
in light of the fact that they put resources into values, these plans are presented to changes in
esteem particularly temporarily.

Value plans are subsequently not appropriate for speculators looking for ordinary pay or
expecting to utilize their interests for the time being. They are perfect for speculators who have a
drawn out venture skyline. The NAV costs of value support changes with showcase estimation of
the fundamental stock which are affected by outside elements, for example, social, political just
as monetary. Sahara Growth Fund is the model for value plans.

Broadly useful Equity Schemes: The venture goals of universally useful value plans don't
confine them to put resources into explicit enterprises or

15
They thus have a diversified portfolio of companies across a large spectrum of industries. While
they are exposed to equity price risks, diversified general-purpose equity funds seek to reduce
the sector or stock specific risks through diversification. They mainly have market risk exposure.
Sahara Wealth Plus Fund is an Equity Fund which is a general-purpose equity scheme.

Income /Debt Schemes

These schemes, also commonly known as Income Schemes, invest in debt securities such as
corporate bonds, debentures and government securities. The prices of these schemes tend to be
more stable compared with equity schemes and most of the returns to the investors are generated
through dividends or steady capital appreciation. These schemes are ideal for conservative
investors or those who are not in a position to take higher equity risks. However, as compared to
the money market schemes they do have a higher price fluctuation risk and compared to a Gilt
fund they have a higher credit risk.

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These plans put resources into currency markets, securities and debentures of corporate
organizations with medium and long haul developments. These plans basically target current pay
rather than capital appreciation. Consequently, a considerable piece of the distributable overflow
is offered back to the speculator by method of profit conveyance. These plans ordinarily
pronounce quarterly profits and are appropriate for traditionalist financial specialists who have
medium to long haul venture skyline and are searching for customary pay through profit or
consistent capital appreciation. Sahara Income Fund is a case of Income/Debt/Bond plot.

Currency Market Schemes: These plans put resources into transient instruments, for example,
business paper ("CP"), endorsements of store ("CD"), treasury charges ("T-Bill") and overnight
cash ("Call"). The plans are minimal unstable of the considerable number of sorts of plans in
light of their interests in currency advertise instrument with transient developments. These plans
have gotten famous with institutional financial specialists and high total assets people having
transient excess assets. Sahara Short Term Plan is a case of Money Market Scheme.

Overlaid Funds: These essentially put resources into Government Debt. Subsequently, the
financial specialist for the most part doesn't need to stress over credit hazard since Government
Debt is by and large credit chance free. The financial specialist is available to Interest hazard,
where the estimation of the protections changes comparable to the market situation. Sahara Gilt
Fund is a case of one such plan.

Adjusted Schemes: These plans are additionally regularly called adjusted plans. These put
resources into the two values just as obligation. By putting resources into a blend of this nature,
adjusted plans try to achieve the target of pay and moderate capital appreciation. Such plans are
perfect for financial specialists with a preservationist, long haul direction. Goodbye Balanced
Fund and Tata Young Citizen's Fund are ideal instances of such half and half plans.

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Duty Saving Schemes: Investors (people and Hindu Undivided Families ('HUFs')) are being
urged to put resources into value showcases through Equity Linked Savings Scheme ("ELSS")
by offering them an expense refund. Units bought can't be doled
out/moved/promised/recovered/exchanged - out until finish of 3 years from the date of
designation of the separate Units. The Scheme is dependent upon Securities and Exchange Board
of India (Mutual Funds) Regulations, 1996 and the notices gave by the Ministry of Finance
(Department of Economic Affairs), Government of India in regards to ELSS. Subject to such
conditions and impediments, as recommended under Section 80 C of the Income-charge Act,
1961, memberships to the Units not surpassing Rs.1,00,000 would be completely charge
excluded from personal duty. The exclusion under area 80 C of IT act is additionally material to
other qualified plans. Sahara Tax Gain Fund is a case of ELSS.

Unique Schemes

Part Specific Equity Schemes: These plans confine their contributing to at least one pre-
characterized divisions, for example innovation division. They rely on the exhibition of these
select areas just and are henceforth inalienably more dangerous than broadly useful value plans.
Undeniably appropriate for educated financial specialists who wish to take a view and hazard on
the concerned part. The Tata Life Sciences and Technology Fund is a case of area explicit value
conspire.

File plots: An Index is utilized as a proportion of execution of the market overall, or a particular
segment of the market. It additionally fills in as a pertinent benchmark to assess the presentation
of shared assets. A few financial specialists are keen on putting resources into the market all in
all as opposed to putting resources into a particular store. Such financial specialists are glad to
get the profits posted by the business sectors. As it isn't functional to put resources into every
single stock in the market in relation to its size, these speculators are happy with putting
resources into a store that they accept is a decent delegate of the whole market. File Funds are
propelled and overseen for such financial specialists. A guide to such a reserve is the Tata Index
Fund.

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Load or no-load Fund: A Load Fund is one that charges a percentage of NAV for entry or exit. That is,
each time one buys or sells units in the fund, a charge will be payable. This charge is used by the mutual
fund for marketing and distribution expenses. Suppose the NAV per unit is Rs.10. If the entry as well as
exit load charged is 1%, then the investors who buy would be required to pay Rs.10.10 and those who
offer their units for repurchase to the mutual fund will get only Rs.9.90 per unit.

MUTUAL FUNDS-FREQUENTLY USED TERMS

Net Asset Value (NAV): Net Asset Value is the total asset value (net of expenses) per unit of the
fund and is calculated by the Asset Management Company (AMC) at the end of every business
day. Net asset value on a particular date reflects the realisable value that the investor will get for
each unit that he his holding if the scheme is liquidated on that date. Net Asset Value is the
market value of the assets of the scheme minus its liabilities. The per unit NAV is the net asset
value of the scheme divided by the number of units outstanding on the Valuation Date.

Sale Price: Is the price you pay when you invest in a scheme. It also called as Offer Price. It may
include a sales load.

Repurchase Price: Is the price at which a close-ended scheme repurchases its units and it may
include a back-end load. This is also called Bid Price.

Redemption Price: Is the price at which open-ended schemes repurchase their units and close-
ended schemes redeem their units on maturity. Such prices are NAV related.

Sales Load: Is a charge collected by a scheme when it sells the units. It also called, ‘Front-end’
load. Schemes that do not charge a load are called ‘No Load’ schemes.

Repurchase or ‘Back-end’ Load: Is a charge collected by a scheme when it buys back the units
from the unit holders.

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ORGANISATION OF MUTUAL FUNDS IN INDIA
There are many entities involved and the diagram below illustrates the organisational set up of a mutual
fund:

Organisation of a Mutual Fund

 and in accordance with SEBI Regulations.

 Sponsor must have at least 5-year track record of business interest in the Financial
Markets.

Trustees: Trustees are the individuals with long understanding and great trustworthiness in the
particular fields convey the critical duty in protecting the premiums of the speculator's .For this
reason, they screen the tasks of the various plans. They have wide extending forces and they can
even excuse AMC with the endorsement of SEBI. The Indian Trust Act administers them.

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History of Trading

In spite of the fact that the main recorded case happened with rice in seventeenth century

in Japan, there is some proof that there may likewise have been rice fates exchanged

China up to 6000 years back. Fates exchanging are a characteristic out development of

the issues of keeping up an all year flexibly of occasional items like rural yields. In Japan,

traders put away rice in distribution center for sometime later. So as to raise money,

stockroom holders sold receipts against the put away rice. These were known as "rice

tickets". In the end, such rice tickets got acknowledged as a sort of general business cash.

Rules appeared to normalize the exchanging rice tickets.

In the United States, Futures exchanging began in the grain advertises in the nineteenth

century. The Chicago Board of Trade was built up in 1848. In the 1870's and 1880's the

New York espresso, cotton and produce trades were conceived. Today there are ten

product trades in the United States. The biggest are the Chicago Mercantile Exchange,

New York Commodity Exchange and the New York Coffee, Sugar and Cocoa Exchange.

Overall there are significant prospects exchanging trades more than 20 nations including

Canada, England, France, Singapore, Japan, Australia and New Zealand. The items

exchanged range from farming staples like corn and wheat to red beans and elastic.

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Development of ware Futures in India

Interest in India has generally implied property, gold and bank stores. The more dangers

taking financial specialists pick value exchanging. Be that as it may, ware exchanging

never shapes a piece of traditional instruments. Indeed, future exchanging wares was

prohibited in India in mid 1960s because of over the top theory. In February 2003, the

legislature repudiated the boycott and opened up prospects exchanging 54 products in

bullion and farming. It gave the thumbs up to four trades to offer web based exchanging

ware subsidiary items.

However, it is simply after right around two years, that product exchanging is discovering

favor with Indian financial specialists and is been viewed as a different resource class

with great development openings. For expansion of portfolio past offers, fixed stores and

shared assets, ware exchanging offers a decent alternative for long haul financial

specialists and arbitrageurs and theorists, and now with every day worldwide volumes in

item exchanging contacting multiple times that of values, exchanging wares can't be

overlooked by Indian speculators.

India has four national level multi item trades with electronic exchanging and settlement

frameworks The National Commodity Exchange of India (NCDEX), the Multi

Commodity Exchange of India (MCX), the National Multi Commodity Exchange of

India (NMCE) and the National Board of Trading in Derivatives (NBOT), offers

exchanging on a national level.

Item Futures Trading

22
The item fates exchanging, comprises of a fates contract, which is lawfully official

understanding accommodating the conveyance of the hidden resource or monetary

substances at indicated date later on. Like every future contact, product fates are

understandings to purchase or sell something at a later and at a value that has been fixed

before by the purchaser and vender. In this way, for instance, a cotton rancher may

consent to offer his yield to a materials organization numerous months prior to the yield

is prepared for real reaping. This permits him to bolt a fixed cost and shield his profit

from a stage drop in cotton costs later on. The materials organization, then again has

secured itself against a potential sharp ascent in cotton costs

The confusing element is quality. Item fates contacts need to indicate the nature of

merchandise being exchanged. The item trades ensure that the purchasers and dealers will

stick to the terms of the agreement. When one buys or sells a futures contract, he is

actually entering into a contractual obligation which can be net in one of 2 ways. First, is

by making or taking delivery of the commodity. This is the exception, not the rule

however, as less than 2% of all the futures contracts are met by actual delivery. The other

way to meet one’s obligation, the method which everyone most likely will use, is by

“offset”.

23
REGULATORY AUTHORITY

Commodity exchanges in India are regulated by Forward Market Commission and its
hierarchy is portrayed in the Figure 1.1:

Forwards Market Commission

Commodity Exchange

National Regional

20 Regional
NCDEX MCX NMCE NBOT Exchanges

Figure 1.1 - Structure of Regulatory Authority

Hazard related with Commodities Trading

Item advertise is presented to the accompanying danger:

• Price hazard – Risk identifying with developments on the planet value, the
swapping scale and the premise among nearby and world costs.

• Increase in buy cost opposite duty on deals cost

• Change in estimation of stock

24
• Counterparty hazard converting into ware value chance

• Quantity and Quality hazard

• Currency chance

Risk MANAGEMENT TECHNIQUES

Considering the dangers talked about already, different hazard the executives methods are
utilized so as to limit the misfortunes. There are three significant procedures:

• Averaging: Averaging is a procedure utilized when there is a current position, and

the value moves unfavorably. And afterward at that specific cost, go into a comparative
new position, at that point take normal of these two costs and when the value moves to
that cost, exchange the position.

• Switching: Switching is one more hazard the board method, when there is a
current position and the costs move unfavorably and gives all sign that it will go a similar
way for still a few while, at that point we need to sell the position and enter another and
inverse situation at a similar cost.

• Locking: It includes two procedures bolting and opening. It is where there is a

current position, and the value moves antagonistically, we 'lock' by going into another
contrary position. And afterward when the subsequent value arrives at a point where it
will skip back, we 'open' by selling the subsequent position and book benefits, and
afterward at long last when the value arrives at some place close to the main position,
exchange the position, whereby we can limit the misfortune.

Need of Hedging

25
The requirement for supporting is as under:

• To lock in a selling cost for yield.

• To show up at typical exchange edges and guaranteeing their solidness for the
money related year.

• To gauge future incomes for anticipating and new undertakings.

• To focus on center business as opposed to costs of yield.

• To shield cost from unfriendly development in costs of information sources.

• To diminish superfluous warehousing.

• To gauge the valuing of the last item precisely. also,

• To remain serious in the market.

Supporting STRATEGIES

The accompanying supporting systems are embraced in product advertise:

Long Hedge:

• This requires taking a long situation in the prospects contact.

• Appropriate when a specific resource or item would be bought later on and one is
keen on locking the value now.

Short Hedge:

26
• This includes a short situation in the fates contract.

• Applicable when a hedger as of now possesses a benefit and hopes to sell later on.

Dynamic Hedge:

• Hedge is gone into when unfavorable value development is normal.

• During periods when good value development is normal, the fence is held in
suppression.

• Exposed to hazard if value sees turn out mistaken.

HEDGING PROCESS

The hedging process will take place in the following manner:

 Understanding business Dynamics

 Requirement Analysis

 Ascertaining Hedging Ratio

 Desiring appropriate hedging Ratio

 Designing appropriate Hedging Strategy

 Review of strategy

27
ARBITRAGING STRATEGIES

The concurrent buy and offer of an advantage so as to benefit from a distinction in the

cost. This typically happens on various trades or commercial centers. An exchange

method is getting one ware and offering another agreement of a similar item to benefit

from an error in costs. In a future spread, the objective is to benefit from the adjustment

in the distinction between two prospects contracts while supporting against the hazard.

Sorts of Arbitrage

• Inter-Exchanges: Between two trades like MCX and NCDEX.

• Inter-Commodities: Between two products of good connection like soy bean and
soy oil.

• Inter-Month: Between the spot advertise and the future market.

Exchange PROCESS

Coming up next are the means in arbitraging:

• Spot buys with concurrent future deal in the trade.

• Goods conveyed at the trade affirmed stockroom and installment discharged to

the provider.

• Sample of merchandise sent for quality affirmation with trade endorsed assayer.

28
• Formal stockroom receipts got on endorsement of merchandise of the necessary
quality.

• Delivery of merchandise through the trade on due date of future contact through
the trade.

• Release of assets from the trade at the contracted value two days after the
conveyance of the products. furthermore,

• Funds discharged in the customers account alongside the benefit on the exchange.

Exchange is the procedure whereby an item is all the while purchased and sold in two

separate markets to exploit a value error between the two markets. A product prospects

trade goes about as a commercial center for people intrigued by exchange. The variables

driving exchange are the distinctions and impression of contrasts of the balance cost

controlled by flexibly and request at different areas. For example, assume there is a

deficiency of corn in North Carolina to take care of domesticated animals. In the event

that one accepts that he can benefit from purchasing corn in Missouri, paying

transportation expenses, and selling corn in North Carolina, he will keep on doing as such

until the gracefully and interest for corn are equivalent in North Carolina, in this manner

the Missouri corn cost in addition to the delivery costs equivalent the North Carolina corn

cost. Consequently arbitraging assume a significant job in deciding the benefit on

products from the distinction of costs in two markets for an equivalent ware, through this

venture an endeavor has been made to demonstrate that ware fates can be utilized

adequately as a hazard decrease instrument and furthermore as an exchange opportunity.

29
As India is the biggest maker and customer of the product, wares are to a great extent

exchanged high volume close to outside trade. Products future market is in newborn child

stage in India, it has a wide scope of speculation openings. Items are exchanged high

volume and yielding great return. This exploration is an endeavor to comprehend the

attention to supporting and arbitraging methodologies among the financial specialists and

fulfillment level by selection and execution of these techniques. This exploration has

additionally made an endeavor to know the financial specialists recognition towards the

item fates market and devices utilized in the hazard the executives procedure.

Coexistance OF FUNDAMENTAL AND TECHNICAL ANALYSIS

Albeit specialized investigation and central examination are seen by numerous

individuals as total inverses - the oil and water of contributing - many market members

have encountered extraordinary accomplishment by joining the two. For instance, some

crucial investigators utilize specialized examination methods to make sense of the best an

ideal opportunity to go into an underestimated security. As a rule, this circumstance

happens when the security is seriously oversold. By timing section into a security, the

increases on the speculation can be significantly improved.

Then again, some specialized merchants may see basics to add solidarity to a specialized

sign. For instance, if a sell signal is given through specialized examples and markers, a

specialized dealer may hope to reaffirm their choice by seeing some key crucial

information. As a rule, having both the basics and technicals can give the most ideal

situation to an exchange.

30
Specialized ANALYSIS

Specialized investigation is a technique for assessing protections by dissecting the

measurements produced by advertise movement, for example, past costs and volume.

Specialized experts don't endeavor to quantify a security's natural qualities. They use

outlines and different apparatuses to recognize designs that can recommend future

movement. Similarly as there are numerous venture

styles on the crucial side, there are additionally a wide range of kinds of specialized

brokers. Some depend on outline designs; others utilize specialized markers and

oscillators, what's more, most utilize a mix of the two. Regardless, specialized

examiners' selective utilization of recorded cost and volume information is the thing that

isolates them from their essential

partners. In contrast to central investigators, specialized experts couldn't care less whether

a stock is underestimated - the main thing that issues is a security's past exchanging

information and what data this information can give about where the security may move

later on.

Specialized investigation is a security examination procedure that guarantees the capacity

to conjecture the future course of costs through the investigation of past market

information, principally cost and volume. In its most perfect structure, specialized

investigation considers just the real cost and volume conduct of the market or instrument.

Specialized experts, once in a while called "chartists", may utilize models and

exchanging rules dependent on cost and volume changes, for example, the relative quality

31
file, moving midpoints, relapses, between showcase and intra-advertise value

connections, cycles or, traditionally, through acknowledgment of diagram designs.

Specialized examination remains in qualification to major investigation. Specialized

examination doesn't think about the real idea of the organization, market, cash or ware

and depends exclusively on "the outlines," in other words cost and volume data, while

crucial investigation looks at the established truths of the organization, market, money or

ware. For instance, any enormous business, exchanging gathering, or money related

organization will normally have both a specialized examination and major investigation

group.

Specialized investigation is broadly utilized among brokers and monetary experts, and is

all the time utilized by dynamic informal investors, advertise creators, and pit dealers.

During the 1960s and 1970s it was broadly ruined by scholastic science. In an ongoing

survey, Irwin and Park detailed that 56 of 95 present day examines discovered it produces

positive outcomes, however noticed that a significant number of the positive outcomes

were rendered questionable by issues, for example, information sneaking around with the

goal that the proof on the side of specialized investigation was uncertain; it is as yet

considered by numerous scholastics to be pseudoscience. Scholastics, for example,

Eugene Fama state the proof for specialized examination is meager and is conflicting

with the feeble type of the proficient market speculation. Clients hold that regardless of

whether specialized examination can't anticipate the future, it assists with distinguishing

exchanging openings.

32
In the outside trade showcases, its utilization might be more broad than crucial

investigation. While some detached investigations have shown that specialized

exchanging rules may prompt reliable returns in the period preceding 1987, most

scholarly work has concentrated on the idea of the irregular situation of the outside trade

advertise. It is conjectured that this oddity is because of national bank mediation.

Development of Derivatives

In the nineteenth century, in Japan, the rice was developed inexhaustibly, later the

exchange the rice developed and advanced to a phase where receipts of future

conveyance were exchanged with a high level of normalization, this prompted forward

exchanging. In 1730, the market got official acknowledgment from the "Tokugawa

Shogutnate"(the administering faction of shoguns or primitive rulers). The Dojima rice

market would thus be able to be viewed as the main prospects advertise, in the feeling of

a sorted out trade with normalized exchanging terms.

The main fates advertise in the western half of the globe were created in the United States

in Chicago. These business sectors had begun as spot markets and step by step advanced

into fates exchanging. This development happened in stages. The main stage was the

beginning of understandings to purchase later on at a pre-decided cost with the aim of

genuine conveyance.

Step by step these contracts became transferable over a period of time, particularly

delivery of the physical produce. Traders found that the agreements were easier to buy

and sell if they were standardized in terms of quality of grain, market lot and place of

33
delivery. This is how modern futures contract first came into being. The Chicago Board

of Trade (CBOT) which opened in 1848, is the largest futures market in the world.

Commodity Futures

Commodity includes all kinds of goods. FCRA (Forward Contract Regulation Act)

defines goods as “every kind of movable property other than actionable claims, money

and securities”. Futures trading are organized in such goods or commodities as are

permitted by the central government. The National Commodity Exchange has been

recognized by the central government for organizing trading in all permissible

commodities which include precious (gold / silver) and non-ferrous metals, cereals and

pulses, oil seeds, raw jute, goods, sugar, potatoes and onions, coffee and tea, rubber and

spices, etc.

34
Rules with respect to arrangement of the Trustees are:

 Appointment of Trustees must be finished with the earlier endorsement of SEBI.

 There must be at any rate 4 individuals in the Board of Trustees and at any rate 2/third of
the individuals from the Board of Trustees must be free.

 Trustees of one Mutual Fund can't be a Trustee of another Mutual Fund, except if he is an
autonomous trustee in the two cases, and has the endorsement of both the Boards.

Privileges of Trustees:

 Trustees select the AMC, in interview with the support and as per SEBI Regulations.

 All common Fund Schemes glided by the AMC must be endorsed by the Trustees.

 Trustees can look for data from the AMC on the tasks and consistence of the Mutual
Fund, with the arrangements of the trust Deed, speculation the executives understanding and the
SEBI Regulations.

 Trustees can audit and guarantee that Net worth of the AMC is as per specified standards
and guidelines.

Resource Management Company: The AMC really deals with the assets of the different plans.
The AMC utilizes an enormous number of experts to make ventures, do explore &to do operator
and financial specialist overhauling. Truth be told, the accomplishment of any Mutual Fund
relies on the productivity of this AMC. The AMC presents a quarterly report on the working of
the shared store to the trustees who will guide and control the AMC.

35
The AMC is normally a private constrained organization, wherein the patrons and their
affiliations or joint endeavor accomplices are investors. The AMC must be enlisted by SEBI and
ought to have a base Net worth of Rs.10 centers all occasions. The job of the AMC is to go about
as the Investment Manager of the Trust alongside the accompanying capacities:

 It deals with the assets by making interests as per the arrangement of the Trust Deed and
Regulations

 The AMC will unveil the premise of computation of NAV and Repurchase cost of the
plans and uncover the equivalent to the financial specialists.

 Funds will be contributed according to Trust Deed and Regulations.

Limitations on the AMC's:

 AMC's can't dispatch a reserve plot without the earlier endorsement of Trustees.
 AMC's has to give full subtleties of Employees and Board Members, in all situations
where such ventures surpass Rs. 1 lakh.
 AMC's can't take up any action that is in struggle with the exercises of the common
assets.

Enlistment centers and Transfer Agents: The Registrars and Transfer Agents are liable for the
financial specialist adjusting capacities, as they keep up the records of speculators in the
common assets. They process financial specialist applications , record subtleties gave by the
speculators on application structures, convey periodical data on the exhibition of the shared
reserve; process profit pay-out to the speculators; consolidate changes ininformation as
communicated by investors; and keep the investor record up to date, by recording new investors
and removing investors who have withdrawn their funds.

36
Caretaker: Custodians are liable for the protections held in the common store's portfolio. They
release a significant back-office work, by guaranteeing that protections that are purchased are
conveyed and moved to the books of shared assets, and that assets are paid-out when common
reserve purchases protections. They keep the speculation record of the common reserve, and
furthermore gather the profits and premium installments due on the shared store ventures.
Caretakers additionally track corporate activities like extra, issues, right offers, offer available to
be purchased, repurchase and open proposals for procurement.

Common FUNDS IN THE FINANCIAL MARKET

Indian budgetary foundations have assumed a predominant job in resources arrangement

and intermediation, and contributed significantly in macroeconomic turn of events. In this
procedure of improvement Indian shared assets have risen as solid money related middle people
and are assuming a significant job in carrying security to the monetary framework and
proficiency to asset assignment.

Common subsidizes assume a pivotal job in an economy by preparing reserve funds and putting
them in the capital market, in this way building up a connection among investment funds and the
capital market. The exercises of shared assets have both short-and long haul sway on the reserve
funds and capital markets, and the national economy. Shared assets, in this manner, help the
procedure of monetary extending and intermediation. They prepare assets in the reserve funds
market and go about as reciprocal to banking; simultaneously they additionally contend with
banks and other money related foundations. In the process financial exchange exercises are
likewise altogether impacted by common assets.

37
There is along these lines barely any section of the money related market, which isn't
(legitimately or in a roundabout way) affected by the presence and activity of shared assets. Be
that as it may, the extension and productivity of common assets are affected by generally
monetary basics: the interrelationship between the money related and genuine division, the
nature of advancement of the reserve funds and capital markets, advertise structure, institutional
courses of action and by and large approach system.

Advantages OF MUTUAL FUNDS

Putting resources into common has different advantages, which makes it a perfect speculation
road. Following are a portion of the essential advantages:

Proficient venture the board - One of the essential advantages of shared assets is that a financial
specialist approaches proficient administration. A wise venture administrator is unquestionably
worth the expenses you will pay. Great shared store supervisors with an astounding exploration
group can make a superior showing of observing the organizations they have decided to put
resources into than you can, except if you have the opportunity to spend on inquiring about the
organizations you select for your portfolio. That is on the grounds that Mutual subsidizes recruit
full-time, significant level venture experts. Assets can stand to do as such as they oversee
enormous pools of cash. The directors have continuous access to significant market data and can
execute exchanges on the biggest and most practical scale. At the point when you purchase a
common reserve, the essential resource you are purchasing is the director, who will be
controlling which resources are picked to meet the assets' expressed speculation targets.

38
Enhancement - A urgent component in contributing is resource distribution. It has an
exceptionally huge impact in the accomplishment of any portfolio. Nonetheless, little financial
specialists need more cash to appropriately designate their benefits. By pooling your assets with
others, you can rapidly profit by more noteworthy expansion. Common assets put resources into
a wide scope of protections. This cutoff points venture chance by decreasing the impact of a
potential decrease in the estimation of any one security. Shared store unit-holders can profit by
broadening procedures generally accessible just to financial specialists well off enough to
purchase noteworthy situations in a wide assortment of protections.

Ease - A shared reserve allows you take an interest in an enhanced portfolio for as meager as
Rs.5, 000, and once in a while less. Also, with a no-heap support, you pay practically no business
charges to claim them.

Comfort and Flexibility - Investing in shared assets has its own accommodation. While you own
only one security as opposed to many, you despite everything appreciate the advantages of a
differentiated portfolio and a wide scope of administrations. Reserve directors choose what
protections to exchange, gather the intrigue installments and see that your profits on portfolio
protections are gotten and your privileges worked out. It additionally utilizes the administrations
of a top notch caretaker and enlistment center. Another large favorable position is that you can
move your assets effectively starting with one reserve then onto the next inside a common store
family. This permits you to effectively rebalance your portfolio to react to critical store the board
or monetary changes.

Liquidity - In open-finished plans, you can recover your cash immediately at net resource esteem
related costs from the shared store itself.

Straightforwardness - Regulations for common assets have made the business exceptionally
straightforward. You can follow the ventures that have been made for your sake and the
particular speculations made by the common reserve plan to see where your cash is going. Also,
you get customary data on the estimation of your venture.

39
Decision of Scheme: Mutual Funds offer a group of plans to suit the fluctuating needs of various
kinds of financial specialists.

Very much Regulated: All Mutual Funds are enlisted with SEBI and they work inside the
arrangement or severe guidelines intended to ensure the financial specialist's venture. The tasks
of Mutual Funds are consistently observed by SEBI.

Overseeing Risk: While hazard can't be wiped out. Aptitude full administration can limit hazard.
Shared supports help to lessen chance through broadening and expert administration. The
experience and aptitude of Mutual Fund oversees in choosing essentially stable protections and
timing their buys and deals help them to fabricate a broadened portfolio that limits chance and
augments returns.

Assortment - There is no deficiency of assortment when putting resources into shared assets.
You can locate a shared reserve that matches pretty much any contributing technique you select.
There are reserves that emphasis on blue-chip stocks, innovation stocks, bonds or a blend of
stocks and bonds. The best test can be figuring out the assortment and picking the best for you.

Tax cut: At present interest in common store plans appreciate the accompanying tax breaks:–

 Since, April 1, 2003, all profits pronounced by obligation based common assets are tax-
exempt in the hands of the financial specialist. A profit dispersion duty of 12.5% (counting
overcharge) is be paid by the common reserve on the profits pronounced by the store.

 Investors in ELSS (value connected reserve funds plans) can profit refund under Section
88 of the Income Tax Act, 1961 on venture up to Rs 10,000 subject to the different conditions set
down in the said Section.

 Under Section 10(38) of the Act, long haul capital additions emerging from move of a
unit of common reserve is absolved from charge if the said exchange is embraced after October
1, 2004 and the protections exchange charge is paid to the fitting power.

40
 Under Section 111A of the Act, momentary capital increases emerging from move of a
unit of shared store is chargeable to burden @ 10% (in addition to material extra charge) if the
said exchange is attempted after October 1, 2004 and the protections exchange charge is paid.

In any case, such protections exchange duty will be permitted as refund under Section 88E of the
Act if the exchange establishes business salary.

 Under Section 112 of the Act, capital increases, not secured by the exception under
Section 10(38), chargeable on move of long haul capital resources are liable to following paces
of assessment:

i. Resident Individual and HUF - 20% in addition to overcharge.

ii. Partnership Firms and Indian Companies - 20% in addition to overcharge.

iii. Foreign Companies - 20% (no extra charge).

Capital additions will be processed in the wake of considering cost of obtaining as balanced by
Cost Inflation Index informed by the focal government.

 Under Section 115AB of the Income Tax Act, 1961, long haul capital gains in regard of
units bought in remote cash by an abroad monetary association held for a time of over a year will
be chargeable at the pace of 10%. Such picks up will be determined without indexation of cost of
securing. No extra charge is relevant for charges under area 115AB, in regard of corporate.

41
hapter – 3 COMPANY PROFILE

42
43
Way2Wealth was incorporated as Sivan Web Trading Private Limited in the year 2000, at
Bengaluru and was thereafter rebranded as Way2Wealth Securities Private Limited, in the same
year. Way2Wealth, along with its various downstream subsidiaries, operates a retail focused
investment advisory business and is involved in providing a host of other financial services. We
were also ranked amongst the top ten broking entities in the retail broking segment during
financial year 2013, according to the BSE.

We have a presence across 21 states in India, as of December 31, 2020. We believe that the
depth in the ability to service its clients comes from the combined experience of our management
team which comprises of employees who have had the experience of working with some of the
leading financial services companies.

Our core businesses can be categorized into broking related business, distribution business and
fund based business, an overview of which is set out below:

Broking and Commission Business- This segment comprises equity brokerage, commodity
brokerage, currency brokerage, insurance broking and real estate broking. The institutional
segment has institutional clients empanelled for equity broking and trade execution services on
the equity markets. In addition, we also provide customized portfolio management services to its
clients.

Distribution Business- This segment consists of financial products distribution initiatives,

namely, mutual funds products, primary market products and third-party products. The
distribution business is managed by a team of managers. We are also involved in providing
wealth management services for high net worth individuals.

Fund Based Activities- Financing clients for their market related activity is the core business for
our NBFC. It extends loan against listed shares, financing for subscribing for initial public offers
of corporates, loan against mutual funds, corporate employee stock option financing and related
funding activities.

44
In addition to the aforesaid service offerings, we are also involved in conducting research and
publishing daily, weekly, monthly and special research reports on topics such as equity
instruments, derivatives, mutual funds, commodities trading and currencies. Additionally, we are
also involved in insurance advisory and placement of insurance services to corporate and small
and medium enterprises. We have also been registered as a point of presence by the Pension
Fund Regulatory and Development Authority to perform functions including, registration of
subscribers, undertaking know-

your-customer verifications, receiving contributions and instructions from subscribers and

transmission of the same to the designated National Pension Scheme intermediaries.

These services are provided through our network of branches, as well as through Way2Wealth
Online which provides a multi-exchange trading platform and multi-channel access for clients
and through mobile trading facilities.

KEY PEOPLE

Way2Wealth has a management team with over 150 man-years of experience amongst
themselves. A strong leadership, respected within industry circles and recognized among
competitors as being formidable and strong, demonstrates high quality and a visionary
management style.

MR. M. R SHASHIBHUSHAN, CEO, WAY2WEALTH

Mr. M R Shashibhushan has over 25 years of experience in various areas of the Indian Capital &
Commodity Markets, Investment Advisory Businesses spanning across corporates like Escorts
Securities, Kotak Securities, Investsmart India ltd & for the past 10 years with Way2Wealth (a
coffee day company).

45
Through his career he has made significant contributions in various functional areas of Capital &
Commodity markets, Investment Advisory, wealth management & Distribution of Financial
products.

Currently, as the Chief Executive Officer at Way2Wealth, strategic planning, asset aggregation,
digital initiatives & wealth management initiatives are the key focus areas overseen by him.

GENTIL AUGUSTINE, HEAD - RETAIL BUSINESS & HEAD - HRD

Gentil, has over 15 years of work experience in various sectors of the services industry.
Previously with IL&FS Investsmart (AVP - HR) and Elbee-UPS.

RIMA SRIVASTAVA, CTO

Rima has over 13 years experience in Indian capital markets. Prior to joining Way2Wealth, she
was with BRICS Securities as Head-Technology and has been associated with organizations such
as the National Stock Exchange, TAIB Securities, Intiqua etc. in her previous assignments.

SHANTANU BHARADWAJ, BUSINESS HEAD & PRINCIPAL OFFICER, WAY2WEALTH

INSURANCE BROKERS PVT. LTD.

Mr. Shantanu Bharadwaj specializes in Product Advisory & Life Insurance. With over 10 years
of commendable experience in Insurance domain, Shantanu’s profile spans product development,
regional sales, business analytics & strategy. Prior to joining Way2Wealth in Nov 2007, he was
associated with IL&FS Investment & NCDEX.

He is an MS (Quant Economics – Indian Statistical Institute) and is a Fellow of Insurance

Institute of India.

46
KEY OFFICES

Email: [email protected]

SMS : W2W to 575758

REGISTERED OFFICE

Rukmini Towers, 3rd & 4th Floor, # 3/1, Platform Road, Sheshadripuram, Bangalore - 560 020.
Karnataka, India

Ph :Ph: (+91 80) 43676869, (080) 23564556/23561952.

CORPORATE OFFICE

EFC Office Infra, 14th Floor, D Wing, Empire Tower, Cloud City, Gut No. 31, Airoli, Off
Thane-Belapur Road, Navi Mumbai - 400708. Maharashtra, India

Ph : (+91 22) - 61462900/40192900.

REGIONAL OFFICES:

Bangalore

Coffee Day Square Annex Building, Ground Floor,28/3 Vittal Mallya Road, Bangalore - 560001

New Delhi

D-74, Himalaya House, 7th Floor, 23, K.G.Marg,New Delhi-110001

47
Chennai

2nd Floor,Palsak Villa, No:10, Seethammal Colony, 2nd Main Road, Alwarpet - 600018

Mumbai

EFC LTD, 14th Floor, Empire Tower, A wing, , Reliable Cloud city, Gut No.31, Thane –
Belapur Road, Airoli, Navi Mumbai – 400708. Maharashtra, India

Hyderabad

# 6-3-571/1/5 II Floor Rockvista Rockdale Compound Somajiguda - 500082

Kolkata

No 315,3rd Floor,Krishna Building,224-A,Acharya Jagadish Chandra Bose Road,Kolkata -

700001

FINANCIAL RESULTS

Annual returns of Way2Wealth Securities Pvt. Ltd. as per Section 92 Sub-section 3 of the
Companies Act 2013 (enclosed e-Form MGT-7 of Securities, Brokers and Commodities).

1. Way2Wealth Securities Pvt. Ltd., FY 2020-21 (Form MGT-7)

2. Way2Wealth Brokers Pvt. Ltd., FY 2020-21 (Form MGT-7)

3. Way2Wealth Commodities Pvt. Ltd., FY 2020-21 (Form MGT-7)

4. Way2Wealth Securities Pvt. Ltd., FY 2021-22 (Form MGT-7)

48
5. Way2Wealth Brokers Pvt. Ltd., FY 2021-22 (Form MGT-7)

6. Way2Wealth Commodities Pvt. Ltd., FY 2021-22 (Form MGT-7)

KEY PEOPLE

Way2Wealth has a management team with over 150 man-years of experience amongst
themselves. A strong leadership, respected within industry circles and recognized among
competitors as being formidable and strong, demonstrates high quality and a visionary
management style.

MR. M. R SHASHIBHUSHAN, CEO, WAY2WEALTH

Mr. M R Shashibhushan has over 25 years of experience in various areas of the Indian Capital &
Commodity Markets, Investment Advisory Businesses spanning across corporates like Escorts
Securities, Kotak Securities, Investsmart India ltd & for the past 10 years with Way2Wealth (a
coffee day company).

Through his career he has made significant contributions in various functional areas of Capital &
Commodity markets, Investment Advisory, wealth management & Distribution of Financial
products.

Currently, as the Chief Executive Officer at Way2Wealth, strategic planning, asset aggregation,
digital initiatives & wealth management initiatives are the key focus areas overseen by him.

49
GENTIL AUGUSTINE, HEAD - RETAIL BUSINESS & HEAD - HRD

Gentil, has over 15 years of work experience in various sectors of the services industry.
Previously with IL&FS Investsmart (AVP - HR) and Elbee-UPS.

RIMA SRIVASTAVA, CTO

Rima has over 13 years experience in Indian capital markets. Prior to joining Way2Wealth, she
was with BRICS Securities as Head-Technology and has been associated with organizations such
as the National Stock Exchange, TAIB Securities, Intiqua etc. in her previous assignments.

SHANTANU BHARADWAJ, BUSINESS HEAD & PRINCIPAL OFFICER, WAY2WEALTH

INSURANCE BROKERS PVT. LTD.

Mr. Shantanu Bharadwaj specializes in Product Advisory & Life Insurance. With over 10 years
of commendable experience in Insurance domain, Shantanu’s profile spans product development,
regional sales, business analytics & strategy. Prior to joining Way2Wealth in Nov 2007, he was
associated with IL&FS Investment & NCDEX.

He is an MS (Quant Economics – Indian Statistical Institute) and is a Fellow of Insurance

Institute of India.

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STRUCTURE OF ORGANISATION

FINANCE, ACCOUNTS, AUDITING DEPARTMENTS

Finance is the life blood of every organization. It is concerned with managerial decision making.
This department is concerned with proper utilization of cash. It identifies the source of finance
where to borrow i.e. ICICI, IRBI, IDBI, Corporation bank etc.

It has abundant of function which can be enumerated as follows:

 Effective funds management which is inverted in beneficial projects.

 Decision making regarding fixing of cash account.

 Obtaining trade credit.

 Profit Maximization.

 Wealth Maximization.

 Preparation of cash budgets.

 Systematic approach to working capital management.

 Pricing of raw materials & valuation of stores.

 To protect financial interest of the company.

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 FINANCE DEPARTMENT CHART

Managing Director

General Manager

AGM (Costing)/ Manager Manager AGM

AGM (Bills) (PR&PF) (LS) (Accounts)/AGM
(CE&C)

Junior Officer Junior Officer

Junior Officer

S R Assistant S R Assistant
S R Assistant

J R Assistant J R Assistant
J R Assistant

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 McKinsey 7S model

McKinsey 7S model is a business framework which can be used to analyze

organizational effectiveness. According to the McKinsey model, the organization is a
complex ecosystem consisting of seven interconnected factors: Structure, Strategy, Skills,
Staff, Systems, Style and Shared Values.

The model is also a blueprint for organizational change.

Structure

Top-down line structure organization.

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Style

In McKinsey’s model style refers to culture.

Transformational leaders create a vision of the future that they share with their teams so
that everyone can work together toward a shared goal and vision. Technology is ever-
changing. Technology companies must embrace change in order to stand the test of time.

Skills

The company’s hardware and R& D had designed one of the most successful and iconic
medicines in the world, there’s no doubt about it.

Staff

The organization should have found ways to motivate and nurture its employees

Strategy

The company had the human resources (skills and staff factors) required to keep
innovating and increasing its market share.

System

The company had the human resources and ERP as an agile system to inculcate
efficiency and resulting better performance.

Shared Values

Integrity, Responsibility, Excellence, Pioneering and Unity.

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The Indian economy is booming, with rates of Gross Domestic Product (GDP) growth exceeding 8% every
year since 2003/04. This ongoing growth is due to rapidly developing services and manufacturing
sectors, increasing consumer demand (largely driven by increased spending by India’s middle class) and
government commitments to rejuvenate the agricultural sector and improve the economic conditions of

India’s rural population. Construction is the second largest economic activity in India after agriculture,
and has been growing rapidly. The production of industrial machinery has also been on the rise – and
the increasing flow of goods has spurred increases in rail, road and port traffic, necessitating further
infrastructure improvements.

In the fiscal year ending March 2008, India’s GDP grew by more than 9%. This robust rate of expansion
was initially forecast to continue in the 2008-2009 fiscal year. In summer 2008, however, the combined
impact of slowing Indian consumption, a higher domestic cost of capital and reduced capital access from
international capital markets raised concerns by some analysts that the rate of growth might be slowing.
In October 2008, India’s Prime Minister, Mr. Manmohan Singh, affirmed the Government’s view that a
rate of growth of 7-7.5% remains realistic, even given the global credit crunch, and assured observers
that the country’s Government will take action if necessary to support businesses and the financial
markets. Mr. Singh has also singled out infrastructure investment as particularly vital.

Indeed, even with a somewhat slower rate of growth, the Indian economy is still expanding significantly,
and substantial investment in infrastructure continues to be required in order to sustain India’s
economic progress. The country’s capacity to absorb and benefit from new technology and industries
depends on the availability, quality and efficiency of more basic forms of infrastructure including energy,
water and land transportation. In some areas, roads, rail lines, ports and airports are already operating
at capacity, so expansion is a necessary prerequisite to further economic growth. The Indian
Government recognises this imperative. As per the Eleventh Five Year Plan, more than US$500 billion
worth of investment is planned to flow into India’s infrastructure by 2012. Construction projects account
for a substantial portion of the proposed investments, making the E&C sector one of the biggest
beneficiaries of the infrastructure boom in India. The regulatory environment is relaxing to encourage
further foreign direct investment (FDI).

55
Private sector participation is integral to these plans. PPPs have been identified as the most suitable
mode for the implementation of projects – and indeed, are rapidly becoming the funding norm. Their
share of the total planned infrastructure improvements is projected to be around 30% (US$150 billion).
Power and road projects top the list, and other transportation sectors such as railways, ports, and
airports are also targeted for major investments.

Companies looking to capitalise on the situation need to plan their strategy for entering the market
carefully. Understanding the local market, including selecting complementary local partners, is vital. Tax
optimisation is a key cost component – while substantial tax benefits are provided for infrastructure
projects, developers need to be savvy about structuring their contracts. Good tax planning can have a
potentially decisive impact, especially in bidding situations, and help to avoid unnecessary litigation
later.

As the engines of growth have shifted towards emerging nations, it seems that economic pros-perity has
finally reached the shores of the East. The salient question remains whether the Indian infrastructure
industry can reap the dividends of a burgeoning economy growing at 7.9% or miss out while the spoils
are distributed among other industries? The infrastructure industry in India has traditionally been a
major driving force towards the economy’s growth, contributing to 5% of India’s GDP. With the new
government deeply committed to a resurgent India, there are many indicators that show infrastructure
to be one of the focal areas in India – a fact that creates a tremendous op-portunity for the construction
industry. India is estimated to spend Rs. 31 trillion on infrastructure development in the next 5 years.
Technology will be at the forefront of this growth because tradi-tional means and a fragmented
workforce are not equipped to drive such growth. The Emergent Divergent As technology makes leaps
and bounds, the way construction takes place has made a quantum leap. There is a talk of using 3D
printers to build houses in many parts of the world. While this technology is yet to be used on a
commercial level, the application of innovation in coming up with building solutions in noteworthy.
Prefabrication or off-site manufacturing is another innovative and emerging technology that has gained
traction in recent years. It involves buildings that are manufactured in sections which can then be
transported to a particular location and assembled. These homes are relatively cheaper and save up on
construction time. This kind of technology finds relevance when seen in the light of the fact that the
government plans to build a home for every Indian by 2022. Such an infrastructure project that is on a
grand scale and which needs to be implemented in such a short time would do well to incorporate the
above technology. Commercial construction has already embraced prefabrication owing to the value it

56
adds in eve-ry aspect – cheaper, faster and better. Adoption of prefabrication technology by home
builders are yet to pick up owing to the lack of awareness and the lack of companies offering such ser-
vices in India. KEF Infra is one such company which is set to enable India’s infrastructure ambi-tions,
having already completed successful commercial projects in South India. Conclusion The magnitude of
growth can be ascertained by the fact that the government itself wishes to in-ject more than Rs. 25
trillion into the infrastructure market in the next 3 years. While no one can predict the future,
construction industry trends seem to be heading towards innovations and ac-ceptances of prefabricated
homes.

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Chapter – 4

STRENGTH, WEAKNESS, OPPORTUNITIES & CHALLENGES (SWOC)

OF THE RESEARCH

Strengths Weaknesses
 Cluster Business Subject  Secondary information
 Learnings for start-ups  Some facts and figures may
 Information available on be withheld
Corporate website  May not be true

Opportunities Challenges
 Perfect Market Conditions  Difficult theme
 Competition Analysis  Common information

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59
OUTCOME OF THE STUDY

In case of a new customer, if a bank approaches it first for opening a Saving Account

with them, then there is a good chance for the bank of getting many future businesses

and cross sales from the deal. Aggressive Marketing is the key to increasing

the market share in this area, since the market has a lot of potential both in terms of

untapped market. The availability of banking and payment services to the entire

population without discrimination is the prime objective of financial inclusion

public policy. With the arrival of banking technology and realization that poor are

bankable with good business prospects, financial inclusion initiatives will strengthen

financial deepening further and provide resources to the banks to expand credit delivery.

The banking technology initiatives meant for financial inclusion should be collaborative

and innovative with an objective to reduce the transaction costs. Thus, financial inclusion

along with the Governmental developmental programmes will lead to an overall financial

and economic development in our country and as in the case for most developing

countries, extending the banking services to everyone in the country will be the key

driver towards an inclusive growth.

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New Entrants Un organized Customers are The hotels Rivalries prevail
are absent due and lower literates and who are for the sales
to large segment of hotels youth , hence registering cake, but the
investment in like hawkers and their slight also have terms of
technology and mess also provide dissatisfaction three or four business and
capital fierce leads to alternative in other things are
intensive competition swapping of the the market common and
operations orders to the similar by all the
rival portals portals.

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Producers of agricultural commodities are faced with price and production risk throughout the year.
Further, increased global free trade and changes in domestic agricultural policy have increased the price
and production risks of agricultural commodities. As price and production variability increases,
producers are realizing the importance of managing risk. One of the means of reducing these risks is
through the use of the commodity futures exchange markets. Like the use of car insurance to hedge the
potential costs of a car accident, agricultural producers can use the commodity futures markets to hedge
the potential costs of commodity price volatility. The primary objective of hedging is not to make
money. The primary objective of hedging is to minimize price risk and this includes using hedging to
minimize losses. Thus hedging is a strategy designed to minimize exposure to an unwanted business risk,
while still allowing the business to profit from an investment activity

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LEARNINGS

o Fierce rivalry won keeping observe

o Marketing Correspondence relationship acknowledged an exceptional part and effect on the client

shrewdness

o Customer Grumblings to be shut and disappointment to be changed over into dazzle at the earliest

EXPERIENCES

 It was really befuddling and every once in a while protections

 Two or three spots they felt very uncertain

 Workers were positive and shared data

63
CONCLUSIONS

 It can be comfortably derived that most of the traders’ were of middle age.

 It can be comfortably derived that most of the traders earned a monthly income in the

range of Rs.31,000/- to Rs.40,000/-.

 It can be comfortably derived that most of the traders had a business experience in the

range of 5 to 10 years.

 It can be comfortably derived that most of the Commodities traders dealt in Precious

Metals.

 It can be emphasized that most of the Futures Traders traded every week.

 Many a investors do not rely completely on the information provided by the brokers.

About 60 percent of the customers get information through brokerage firm and

television.

 Majority of the cusotmers are highly satisfied with the information provided by the

dealers.

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 BIBLIOGRAPHY

www WAY2WEALTH.com

www.R.B.I.COM

www.Google.com

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