Suchintan Roy
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- 2. 2 | P a g e 1. STOCK MARKET 1.1 Introduction Definition of Stock Exchange : The securities regulation act of 1956 defined stock exchange as “an association , organization , or a individual which is established for for the purpose of assisting , regulating , and controlling business in buying ,selling and dealing in securities.” Meaning : This comes under treasury sector ,which provides service to stock brokers & traders to trade stocks ,bonds and securities. Stock exchanges helps the companies to raise their fund. Therefore the companies needs to list themselves in the Stock Exchange and the shares will be issued which is known as equity or a ordinary share and these shareholders are the real owners of the company the Board Of Directors of the Company are elected out of these Equity Shareholders only. 1.2 Indian stock market Indian Stock Markets is one of the oldest in Asia. Its history dates back to nearly 200 years ago. The earliest records of security dealings in India are meager and obscure. The East India Company was the dominant institution in those days and business in its loan securities used to be transacted towards the close of the eighteenth century. By 1830's business on corporate stocks and shares in Bank and Cotton presses took place in Bombay. Though the trading list was broader in 1839, there were only half a dozen brokers recognized by banks and merchants during 1840 and 1850. The 1850's witnessed a rapid development of commercial enterprise and brokerage business attracted many men into the field and by 1860 the number of brokers increased into 60. In 1860-61 the American Civil War broke out and cotton supply from United States to Europe was stopped; thus, the 'Share Mania' in India began. The number of brokers increased to about 200 to 250. At the end of the American Civil War, the brokers who thrived out of Civil War in 1874, found a place in a street (now appropriately called as Dalal Street) where they would conveniently assemble and transact business. In 1887, they formally established in Bombay, the "Native Share and Stock Brokers' Association”, which is alternatively known as “The Stock Exchange". In 1895, the Stock Exchange acquired a premise in the
- 3. 3 | P a g e same street and it was inaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated. The Indian stock market has been assigned an important place in financing the Indian corporate sector. The principal functions of the stock markets are: enabling mobilizing resources for investment directly from the investors providing liquidity for the investors and monitoring. Disciplining company management. The two major stock exchanges in India are:- National Stock Exchange (NSE) Bombay Stock Exchange (BSE). 1.2.1 National Stock Exchange (NSE) The national stock exchange of India was promoted by leading financial institution at the bhest of government of India and was incorporated in November 1992 as a tax paying company.In April 1993,it was recognized as a stock exchange under the securities contract(Regulation) Act, 1956…NSE commenced operation in the WDM in June 1994. The capital market segment of the NSE commenced operation in November 1994 ,while operation in the derivatives segment in June 2000. Currently, NSE has the following major segments of capital market: Equity Future and options Debt market Currency future Mutual fund There are two kinds of players in NSE: Trading members Participants
- 4. 4 | P a g e NIFTY: S&P CNX Nifty is a well-diversified 50 stock index accounting for 22 sectors of the economy. It is used for a variety of purposes such as benchmarking fund portfolios, index based derivatives and index funds. 1.2.2 Bombay Stock Exchange (BSE) The Bombay Stock Exchange is known as the oldest exchange in Asia. It traces its history to the 1850s, when stockbrokers would gather under banyan trees in front of Mumbai's Town Hall. The location of these meetings changed many times, as the number of brokers constantly increased. The group eventually moved to Dalal Street in 1874 and in 1875 became an official organization known as 'The Native Share & Stock Brokers Association'. In 1956, the BSE became the first stock exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act. The Bombay Stock Exchange switched to an electronic trading system in 1995. SENSEX: The Stock Exchange, Mumbai (BSE) in 1986 came out with a stock index that subsequently became the barometer of the Indian stock market. SENSEX is not only scientifically designed but also based on globally accepted construction and review methodology. First compiled in 1986, SENSEX is a basket of 30 constituent stocks representing a sample of large, liquid and representative companies. The base year of SENSEX is 1978-79 and the base value is 100. The index is widely reported in both domestic and international markets through print as well as electronic media. The launch of SENSEX in 1986 was later followed up in January 1989 by introduction of BSE National Index (Base: 1983-84 = 100). It comprised of 100 stocks listed at five major stock exchanges.
- 5. 5 | P a g e 2. OVERVIEW OF THE REGULATORY FRAMEWORK OF THE CAPITAL MARKET IN INDIA India has a financial system that is regulated by independent regulators in the sectors of banking, insurance, capital markets and various service sectors. The Indian Financial system is regulated by two governing agencies under the Ministry of Finance. They are a) Reserve Bank of India The RBI was set up in 1935 and is the central bank of India. It regulates the financial and banking system. It formulates monetary policies and prescribes exchange control norms. b) The Securities Exchange Board of India The Government of India constituted SEBI on April 12, 1988, as a non-statutory body to promote orderly and healthy development of the securities market and to provide investor protection. 2.1 Department Economic Affairs The capital markets division of the Department of Economic Affairs regulates capital markets and securities transactions. The capital markets division has been entrusted with the responsibility of assisting the Government in framing suitable policies for the orderly growth and development of the securities markets with the SEBI, RBI and other agencies. It is also responsible for the functioning of the Unit Trust of India (UTI) and Securities and Exchange Board of India (SEBI). The principal aspects that are dealt with the capital market division are: Policy matters relating to the securities market Policy matters relating to the regulation and development and investor protection of the securities market and the debt market. Organizational and operational matters relating to SEBI
- 6. 6 | P a g e 2.2 Techniques and Instruments for Trading The various techniques that are available in the hands of a client are:- 1. Delivery 2. Intraday 3. Future 4. Forwards 5. Options 6. swaps 2.3 Basic Requirement for doing Trading Trading requires Opening a Demat account. Demat refers to a dematerialized account. You need to open a Demat account if you want to buy or sell stocks. So it is just like a bank account where actual money is replaced by shares. We need to approach the Depository Participants (DP, they are like bank branches), to open Demat account. A depository is a place where the stocks of investors are held in electronic form. The depository has agents who are called depository participants (DPs). Think of it like a bank. The head office where all the technology rests and details of all accounts held is like the depository. And the DPs are the branches that cater to individuals. There are only two depositories in India – The National Securities Depository Ltd (NSDL) and the Central Depository Services Ltd (CDSL). 2.4 Capital Market Participants Banks Exchanges Clearing Corporations Brokers Custodians
- 7. 7 | P a g e Depositories Investors Merchant Bankers 2.5 Types of Investors Institutional Investors- MFs / FI / FIIs / Banks Retail Investors Arbitrageurs / Speculators Hedgers Day traders/Jobbers 2.6 Combination of Futures and Option Hedging means, minimizing the risk, i.e., minimizing the losses. Under index futures and index options investor can minimize his losses. Hedging does not remove losses but removes unwanted exposure, i.e. unnecessary risk. One should not enter into a hedging strategy hoping to make excess profits; all it can do is reduce the risk. 3. PARAMETERS OF INVESTMENT The nature of investment differs from individual to individual and is unique to each one because it depends on various parameters like future financial goals, the present & the future income model, capacity to bear the risk, the present requirements and lot more. As an investor progresses on his/her life stage and as his/her financial goals change, so does the unique investor profile. Economic development of a country depends upon its investment. The emerging economic environment of competitive markets signifying customer’s sovereignty has profound implications for their savings and investment. Investment means person’s commitments towards his future. 3.1 INVESTMENT The word "investment" can be defined in many ways according to different theories and principles. It is a term that can be used in a number of contexts. However, the different meanings of "investment" are more alike than dissimilar.
- 8. 8 | P a g e Generally, investment is the application of money for earning more money. Investment also means savings or savings made through delayed consumption. The most important feature of financial investments is that they carry high market liquidity. The method used for evaluating the value of a financial investment is known as valuation. According to business theories, investment is that activity in which a manufacturer buys a physical asset, for example, stock or production equipment, in expectation that this will help the business to prosper in the long run. 3.2 Characteristics of an investment decision: It involves the commitment of funds available with you or that you would be getting in the future. The investment leads to acquisition of a plot, house, or shares and debentures. The physical or financial assets you have acquired are expected to give certain benefits in the future periods. The benefits may be in the form of regular revenue over a period of time like interest or dividend or sales or appreciation after some point of time as normally happens in the case of investment in land or precious metals. 3.3 Essentials of Investment Essentials of investment refer to why investment, or the need for investment, is required. The investment strategy is a plan, which is created to guide an investor to choose the most appropriate investment portfolio that will help him achieve his financial goals within a particular period of time. An investment strategy usually involves a set of methods, rules, and regulations, and is designed according to the exchange or compromise of the investor's risks and returns. A number of investors like to increase their earnings through high-risk investments, whilst others prefer investing in assets with minimum risk involved. However, the majority of investors choose an investment strategy that lies in the middle. Investment strategies can be broadly categorized into the following types: Active strategies: One of the principal active strategies is market timing (an investor is able to move into the market when it is on the low and sell the stocks when the market is on the high), which is applied for maximizing yields.
- 9. 9 | P a g e Passive strategies: Frequently implemented for reducing transaction costs. One of the most popular strategies is the buy and hold, which is basically a long term investment plan. The idea behind this is that stock markets yield a commendable rate of return in spite of stages of fluctuation or downfall. Indexing is a strictly passive variable of the buy and hold strategy and, in this case, an investor purchases a limited number of every share existing in the stock market index, for example the Standard and Poor 500 Index, or more probably in an index fund, which is a form of a mutual fund. In case of real estate investment the retail and small-scale investors apply the buy and hold strategy, because the holding period is normally equal to the total span of the mortgage loan. 3.4 Principles of investment Five basic principles serve as the foundation for the investment approach. They are as follows: Focus on the long term There is substantive empirical evidence to suggest that equities provide the maximum risk adjusted returns over the long term. In an attempt to take full advantage of this phenomenon, investments would be made with a long term perspective. Investments confer proportionate ownership The approach to valuing a company is similar to making an investment in a business. Therefore, there is a need to have a comprehensive understanding of how the business operates. Maintain a margin of safety The benchmark for determining relative attractiveness of stocks would be the intrinsic value of the business. The Investment Manager would endeavor to purchase stocks that represent a discount to this value, in an effort to preserve capital and generate superior growth.
- 10. 10 | P a g e Maintain a balanced outlook on the market The investment portfolio would be regularly monitored to understand the impact of changes in business and economic trend as well as investor sentiment. While short-term market volatility would affect valuations of the portfolio, this is not expected to influence the decision to own fundamentally strong companies. Disciplined approach to selling The decision to sell a holding would be based on either the anticipated price appreciation being achieved or being no longer possible due to a change in fundamental factors affecting the company or the market in which it competes, or due to the availability of an alternative that, in the view of the Investment Manager, offers superior returns. 3.5 The Capital Market is governed by: Securities Contract (Regulation) Act, 1956 Securities Contract (Regulation) Rules, 1957 SEBI Act, 1992 Companies Act 1956 SEBI (Stock Brokers and Sub Brokers) Rules, 1992 Exchange Bye-Laws Rules & Regulations 3.6 Self-regulating Role of the Exchange The exchange functions as a Self Regulatory Organization with the parameters laid down by the SCRA, SEBI Act, SEBI Guidelines and Rules, Bye-laws and Regulations of the Exchange. The Governing Board discharges these functions. The Executive Director has all the powers of the governing board except discharging a member indefinitely or declaring him a defaulter or expelling him. The Executive Director takes decisions in the areas like surveillance, inspection, investigation, etc. in an objective manner as per the parameters laid down by the governing board or the statutory committees like the Disciplinary Action Committee.
- 11. 11 | P a g e 3.7 Trading with stock market This section will introduce us about the process and instruments used to help a customer or a client to trade with arcadia securities. This process is almost similar to any other trading firm but there will be some difference in the cost of brokerage commission. Trading: It is a process by which a customer is given facility to buy and sell share this buying and selling can only be done through some broker and this is where Arcadia helps its customer. A customer willing to trade with any brokerage house need to have a demat account, trading account and saving account with a brokerage firm. Any one having following document can open all the above mentioned account and can start trading. 3.7.1 Document Required 3 photographs ( signed across) Photo Identification Proof - any of the following - Voter ID/Driving License/Passport. Address Proof any of the following - Voter ID/Driving License/ Passport/ Bank statement or pass book sealed and attestation by bank official/ BSNL landline bill. A crossed Cheque favouring “Karvy Stock Broking”. Of the required amount. The amount for Demat as well as trading will be Rs. 900/-(free Demat +900 Trading Account) the minimum amount being Rs. 900 a cheque can be given for a larger amount. Copy of PAN Card is mandatory. Registration Kit CDSL Demat Kit Bank and address proof declaration. PAN name discrepancy form. 3.8 Investment types A particular investor normally determines the investment types after having formulated the investment decision, which is termed as capital budgeting in financial lexicon. With the proliferation of financial markets there are more options for investment types.
- 12. 12 | P a g e According to the financial terminology investment means the following: Purchasing Securities in Money or Capital Markets. Buying Monetary or Paper Financial Assets in Money or Capital Markets, Investing in Liquid Assets like Gold, Real Estate and Collectibles, Investors assume that these forms of investment would furnish them with some revenue by way of positive cash flow. It is common practice for the particular intermediaries to have separate legal procedures of their own. Following are some intermediaries: Banks Mutual Funds Pension Funds Insurance Companies Collective Investment Schemes Investment Clubs Investment in the domain of personal finance signifies funds employed in the purchasing of shares, investing in collective investment plans or even purchasing an asset with an element of capital risk. In the field of real estate, investments imply buying of property with the sole purpose of generating income. Investment in residential real estate could be made in the form of buying housing property, while investments in commercial real estate is made by owning commercial property for corporate purposes that are geared to generate some amount of revenue. WHY SHOULD ONE INVEST? One needs to invest to: Earn return on your idle resources. Generate a specified sum of money for a specific goal in life. Make a provision for an uncertain future.
- 13. 13 | P a g e 3.9 Various options available for investment One may invest in Physical assets like real estate, gold/jewellery, commodities etc. or Financial assets such as fixed deposits with banks, small saving instruments with post offices, insurance/ provident/ Pension fund etc. or securities market related instruments like shares, bonds, debentures etc. Various Short-term financial options available for investment. Broadly speaking, savings bank account, money market/liquid funds and fixed deposits with banks may be considered as short-term financial investment options. Savings Bank Account is often the first banking product people use, which offers low interest (4%-5% p.a.), making them only marginally better than fixed deposits. (Except Kotak Mahindra Bank% p.a) Fixed Deposits with Banks are also referred to as term deposits and minimum investment period for bank FDs is 30 days. Fixed Deposits with banks are for investors with low risk appetite, and may be considered for 6-12 months investment period as normally interest on less than 6 months bank FDs is likely to be lower than money market fund returns. Various Long-term financial options available for investment. Post Office Savings: Post Office Monthly Income Scheme is a low risk saving instrument, which can be availed through any post office. It provides an interest rate of 8.5% per annum, which is paid monthly. Public Provident Fund: A long term savings instrument with a maturity of 15 years and interest payable at 8.5% per annum compounded annually. A PPF account can be opened through a nationalized bank at anytime during the year and is open all through the year
- 14. 14 | P a g e for depositing money. Tax benefits can be availed for the amount invested and interest accrued is tax-free(Upto Rs150000). Company Fixed Deposits: These are short-term (six months) to medium-term (three to five years) borrowings by companies at a fixed rate of interest which is payable monthly, quarterly, semi-annually or annually. They can also be cumulative fixed deposits where the entire principal along with the interest is paid at the end of the loan period. The rate of interest varies between 6-9.50% per annum for company FDs. The interest received is after deduction of taxes Bonds: It is a fixed income (debt) instrument issued for a period of more than one year with the purpose of raising capital. The central or state government, corporations and similar institutions sell bonds. A bond is generally a promise to repay the principal along with a fixed rate of interest on a specified date, called the Maturity Date. Mutual Funds: These are funds operated by an investment company which raises money from the public and invests in a group of assets (shares, debentures etc.), in accordance with a stated set of objectives. It is a substitute for those who are unable to invest directly in equities or debt because of resource, time or knowledge constraints. Benefits include professional money management, buying in small amounts and diversification. Mutual fund units are issued and redeemed by the Fund Management Company based on the fund's net asset value (NAV), which is determined at the end of each trading session. NAV is calculated as the value of all the shares held by the fund, minus expenses, divided by the number of units issued. 3.10 Equity Investment :- Equity investment refers to the trading of stocks and bonds in the share market. It is also referred to as the acquisition of equity or ownership participation in the company. An equity investment is typically an ownership investment, where the investor owns an asset
- 15. 15 | P a g e of the company. In this kind of investment there is always a risk of the investor not earning a specific amount of money. Equity investment can also be termed as payment to a firm in return for partial ownership of that firm. An equity investor, in some cases, may assume some management control of the firm and may also share in future profits. In order to understand equity investment properly, it is necessary to see the technical and fundamental analysis. The technical analysis of equity investment is primarily the study of price history of the shares and stock market. A fundamental analysis of equity investment involves the study of all available information that is relevant to the share market in order to predict the future trends of the stock market. The annual reports, industry data and study of the economic and financial environment are also included in the fundamental information of equity investment. 3.11 Mutual Funds and Segregated Funds Mutual funds or other forms of pooled investment measures are equities held by private individuals but managed and governed by prominent management firms. These types of financial holdings allow individual investors to diversify their holdings and avoid potential loss. Segregated funds, on the other hand, are used by large private investors who wish to hold their shares directly rather than in a mutual fund. The prime advantage in investing in a pooled fund is that it gives the individual access to professional advice through the fund manager. The major disadvantages involved are that the investors must pay a fee to the fund managers and that the diversification of the fund may not be appropriate for all investors. In those cases, the investors may over-diversify by holding several funds, thus reducing the risk. 3.11.1 Mutual funds are supposed to be the best mode of investment in the capital market since they are very cost beneficial and simple, and do not require an investor to figure out which securities to invest into. A mutual fund could simply be described as a financial medium used by a group of investors to increase their money with a predetermined
- 16. 16 | P a g e investment. The responsibility for investing the pooled money into specific investment channels lies with the fund manager of said mutual fund. Therefore investment in a mutual fund means that the investor has bought the shares of the mutual fund and has become a shareholder of that fund. Diversification of investment Investors are able to purchase securities with much lower trading costs by pooling money together in a mutual fund rather than try to do it on their own. However the biggest advantage that mutual funds offer is diversification which allows the investor to spread out his money across a wide spectrum of investments. Therefore when one investment is not doing well, another may be doing taking off, thereby balancing the risk to profit ratio and considerably covering the overall investment. Types of Mutual Funds (Mode of Investment): 3.12 DEBENTURES: - In financial context, Debentures are Debt Instruments issued for a long term by governments and big institutions for rising funds. The Debenture has some resemblances to bonds but the securitization terms and conditions are different for Debentures compared to a bond.
- 17. 17 | P a g e A Debenture is commonly considered as insecure because there is no pledge or lien on particular assets. Nevertheless, a Debenture is secured by all the assets which are otherwise not pledged. In return, the Debenture issuer pays interest to the Debenture holders as it is paid in case of a loan. In practical application, the difference between a Bond and a Debenture is not always kept. In some instances, Debentures are also referred to as Bonds and vice-versa. 3.12.1 TYPES OF DEBENTURES Convertible Debenture Non-Convertible Debenture Participative Debenture Non- Participative Debenture Redeemable Debenture Irredeemable Debenture 3.13 BOND MARKET: - The bond market is a financial market that acts as a platform for the buying and selling of debt securities. The bond market is a part of the capital market serving platform to collect fund for the public sector companies, governments, and corporations. There are a number of bond indices that reflect the performance of a bond market. Five types of bond markets. They are: Corporate Bond Market Municipal Bond Market Government and Agency Bond Market Funding Bond Market Mortgage Backed and Collateralized Debt Obligation Bond Market
- 18. 18 | P a g e 3.14 Share Market Investment Shares are purchased and sold on the primary and secondary share markets. To invest in the share market, investors acquire a call option, which is the right to buy a share, or a put option, which is the right to sell a share. In general, investors buy put options if they expect prices to rise, and call options if they expect prices to fall.. The value of a derivative depends on the value of the underlying asset. The various classifications of derivatives relevant to share market investment are: Swap Futures Contract Forward Contract Option Contract A forward contract is agreements between two parties purchase or sell a product in the future, at a price determined now. This mutual agreement satisfies the profit motive of both the buyer and seller, and the uncertainties and risks of price fluctuations in the future are aborted. A future contract is different from a forward contract in the sense that the former requires the presence of a third party and the commitment for trade is simply notional. The price levels of a traded share are as follows: Opening Price: This is the price at which the market opens. In other words, it is the price of the first transaction. Closing Price: This is the price at the time of closing of the market or the price of the last trade. Intra-Day High: This denotes the maximum price at which the share was traded in the day. Intra-Day Low: This is the minimum price at which the share traded in the day. 3.15 Debt Investments : Debt securities (in the form of non-convertible debentures, bonds, secured premium notes, zero interest bonds, deep discount bonds, floating rate bond / notes, securitised debt, pass through certificates, asset backed securities, mortgage backed securities and any other domestic fixed income securities including structured obligations etc.) include, but are not limited to :
- 19. 19 | P a g e Money Market Instruments Include Commercial Papers Commercial bills Treasury bills Government securities having an unexpired maturity upto one year Call or notice money Certificate of deposit Usance bills Permitted securities under a repo / reverse repo agreement Any other like instruments as may be permitted by RBI / SEBI from time to time. Investments will be made through secondary market purchases, initial public offers, other public offers, placements and right offers (including renunciation) and negotiated deals. The securities could be listed, unlisted, privately placed, secured / unsecured, rated / unrated of any maturity.
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- 21. 21 | P a g e INTRODUCTION OF KOTAK MAHINDRA GROUP Kotak Mahindra is one of India's leading banking and financial services organizations, offering a wide range of financial services that encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the diverse financial needs of individuals and corporate sector. The group has a net worth of over Rs. 100.6 billion and has a distribution network of branches, franchisees, representative offices and satellite offices across cities and towns in India, and offices in New York, London, San Francisco, Dubai, Mauritius and Singapore servicing around 8 million customer accounts. The group specializes in offering top class financial services, catering to every segment of the industry. The various companies include : Kotak Mahindra Bank Ltd Kotak Mahindra Old Mutual Life Insurance Ltd Kotak Securities Ltd Kotak Mahindra Capital Company (KMCC) Kotak Mahindra Prime Ltd (KMPL) Kotak International Business Kotak Mahindra Asset Management Company Ltd (KMAMC) Kotak Private Equity Group (KPEG) Kotak Realty Fund
- 22. 22 | P a g e Kotak Mahindra Bank Ltd Kotak Mahindra Bank Ltd is a one stop shop for all banking needs. The bank offers personal finance solutions of every kind from savings accounts to credit cards, distribution of mutual funds to life insurance products. Kotak Mahindra Bank offers transaction banking, operates lending verticals, manages IPOs and provides working capital loans. Kotak has one of the largest and most respected Wealth Management teams in India, providing the widest range of solutions to high net worth individuals, entrepreneurs, business families and employed professionals. Kotak Mahindra Old Mutual Life Insurance Ltd Kotak Mahindra Old Mutual Life Insurance Ltd is a 74:26 joint venture between Kotak Mahindra Bank Ltd., its affiliates and Old Mutual plc. A Company that combines its international strengths and local advantages to offer its customers a wide range of innovative life insurance products, helping them take important financial decisions at every stage in life and stay financially independent. The company covers over 3 million lives and is one of the fastest growing insurance companies in India. www.kotaklifeinsurance.com Kotak Securities Ltd Kotak Securities is one of the largest broking houses in India with a wide geographical reach. Kotak Securities operations include stock broking and distribution of various financial products including private and secondary placement of debt, equity and mutual funds. Kotak Securities operate in five main areas of business:
- 23. 23 | P a g e Stock Broking (retail and institutional) Depository Services Portfolio Management Services Distribution of Mutual Funds Distribution of Kotak Mahindra Old Mutual Life Insurance Ltd products Kotak Mahindra Capital Company (KMCC) Kotak Investment Banking (KMCC) is a full-service investment bank in India offering a wide suite of capital market and advisory solutions to leading domestic and multinational corporations, banks, financial institutions and government companies. Our services encompass Equity & Debt Capital Markets, M&A Advisory, Private Equity Advisory, Restructuring and Recapitalization services, Structured Finance services and Infrastructure Advisory & Fund Mobilization. Kotak Mahindra Prime Ltd (KMPL) Kotak Mahindra Prime Ltd is among India's largest dedicated passenger vehicle finance companies. KMPL offers loans for the entire range of passenger cars, multi-utility vehicles and pre-owned cars. Also on offer are inventory funding and infrastructure funding to car dealers with strategic arrangements via various car manufacturers in India as their preferred financier. Kotak International Business
- 24. 24 | P a g e Kotak International Business specializes in providing a range of services to overseas customers seeking to invest in India. For institutions and high net worth individuals outside India, Kotak International Business offers asset management through a range of offshore funds with specific advisory and discretionary investment management services. Kotak Mahindra Asset Management Company Ltd (KMAMC) Kotak Mahindra Asset Management Company offers a complete bouquet of asset management products and services that are designed to suit the diverse risk return profiles of each and every type of investor. KMAMC and Kotak Mahindra Bank are the sponsors of Kotak Mahindra Pension Fund Ltd, which has been appointed as one of six fund managers to manage pension funds under the New Pension Scheme (NPS). Kotak Private Equity Group (KPEG) Kotak Private Equity Group helps nurture emerging businesses and mid-size enterprises to evolve into tomorrow's industry leaders. With a proven track record of helping build companies, KPEG also offers expertise with a combination of equity capital, strategic support and value added services. What differentiates KPEG is not merely funding companies, but also having a close involvement in their growth as board members, advisors, strategists and fund-raisers.
- 25. 25 | P a g e Kotak Realty Fund Kotak Realty Fund deals with equity investments covering sectors such as hotels, IT parks, residential townships, shopping centre’s, industrial real estate, health care, retail, education and property management. The investment focus here is on development projects and enterprise level investments, both in real estate intensive businesses. History of Kotak Mahindra Group The Kotak Mahindra group was born in 1985 as kotak Capital Management Finance Limited. This company was promoted by Uday Kotak, Sidney A. A. Pinto and Kotak and company. Industrialists Harish Mahindra and Mahindra took a stake in 1986, and that’s when the company changed its name to Kotak Mahindra Finance Limited. It has been a steady and confident journey leading to growth and success. The milestones of the group growth story are listed below year wise: 1986 Kotak Mahindra Finance Ltd started the activity of Bill Discounting 1987 Kotak Mahindra Finance Ltd entered the Lease and Hire Purchase market 1990 The Auto Finance division was started 1991 The Investment Banking Division was started. Took over FICOM, one of India's largest financial retail marketing networks 1992 Entered the Funds Syndication sector 1995 Brokerage and Distribution businesses incorporated into a separate company - Securities. Investment banking division incorporated into a separate
- 26. 26 | P a g e company - Kotak Mahindra Capital Company 1996 The Auto Finance Business is hived off into a separate company - Kotak Mahindra Prime Limited (formerly known as Kotak Mahindra Primus Limited). Kotak Mahindra takes a significant stake in Ford Credit Kotak Mahindra Limited, for financing Ford vehicles. The launch of Matrix Information Services Limited marks the Group's entry into information distribution. 1998 Entered the mutual fund market with the launch of Kotak Mahindra Asset Management Company. 2000 Kotak Mahindra tied up with Old Mutual plc. For the Life Insurance business. Kotak Securities launched its on-line broking site. Commencement of private equity activity through setting up of Kotak Mahindra Venture Capital Fund. 2001 Matrix sold to Friday Corporation. Launched Insurance Services. Kotak Securities Ltd. was incorporated 2003 Kotak Mahindra Finance Ltd. converted into a commercial bank - the first Indian company to do so. 2004 Launched India Growth Fund, a private equity fund. 2005 Kotak Group realigned joint venture in Ford Credit; their stake in Kotak Mahindra Prime was bought out (formerly known as Kotak Mahindra Primus Ltd) and Kotak group’s stake in Ford credit Kotak Mahindra was sold. Launched a real estate fund. 2006 Bought the 25% stake held by Goldman Sachs in Kotak Mahindra Capital Company and Kotak Securities.
- 27. 27 | P a g e 2008 Launched a Pension Fund under the New Pension System. 2009 Kotak Mahindra Bank Ltd. opened a representative office in Dubai Entered Ahmadabad Commodity Exchange as anchor investor. 2010 Ahmadabad Derivatives and Commodities Exchange, a Kotak anchored enterprise, became operational as a national commodity exchange. INTRODUCTION OF KOTAK SECURITIES LTD. Originally established in 1994, Kotak Securities is a subsidiary of Kotak Mahindra Bank, which services more than 7.4 lakh customers. The firm has a wide network of more than 1400 branches, franchisees representative offices, and satellite offices across 448 cities in India and offices in New York, London, Dubai, Mauritius and Singapore. We process more than 400000 trades a day which is much higher than some of the renowned international brokers. The company is a corporate member of both The Bombay Stock Exchange (BSE) and The National Stock Exchange of India (NSE). Our operations include stock broking services for trading in stock markets through branches & internet and distribution of various financial products including investments in IPOs, Mutual Funds and Currency Derivatives. Currently, Kotak Securities is one of the largest broking houses in India with substantial geographical reach to Asia Pacific, Europe, Middle East and America.
- 28. 28 | P a g e Innovators: We have been the pioneers in providing many products and services which have now become industry standards for stock broking in India. Some of them include: Mobile stock trading application to keep track of your investments even on the go Facility of Margin Finance to the customers for online stock trading Investing in IPOs and Mutual Funds on the phone SMS alerts before execution of depository transactions Auto Invest - A systematic investing plan in Equities and Mutual funds Provision of margin against securities automatically against shares in your Demat account Research Expertise: We specialize in Fundamental and Technical analysis backed by a team of highly trained and qualified individuals. Our full-fledged research division is involved in Macro Economic studies, Sectorial research and Company Specific Equity Research which publishes in-depth stock market analysis. This is combined with a strong and well networked sales force which helps deliver current and up to date market information and news. We are also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL). By being a stock broker and depositary participant, we provide dual benefit in our services wherein the investors can avail our stock broking services for executing the transactions .
- 29. 29 | P a g e Our Portfolio Management Service comes as an answer to those who would like to grow exponentially on the crest of the stock market, with the backing of an expert. Board of Directors of Kotak Securities Ltd : Chairman: Mr. Uday Kotak. Directors: Mr. C. Jayaram Mr. Dipak Gupta KOTAK GROUP PRODUCTS AND SERVICES : Bank Life Insurance Mutual Fund Car Finance Securities Institutional Equities Investment Banking Kotak Mahindra International Kotak Private Equity Kotak Realty Fund
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- 31. 31 | P a g e REVIEW OF LITERATURE Various studies on Investment pattern & Investment behavior of investors had been conducted in foreign countries. However, in Indian context, the number is quite few. Depending on the various issues of investment, the review has been discussed in brief as follows: Charles (1999) has analysed that the astonishing growth in Americans' stock portfolios in the 1990s has been a major force behind the growth of consumer spending. This article reviews the relationship between stock market movements and consumption. Using various econometric techniques and specifications, the authors find that the propensity to consume out of aggregate household wealth has exhibited instability over the postwar period. They also show that the dynamic response of consumption growth to an unexpected change in wealth is extremely short-lived, implying that forecasts of consumption growth one or more quarters ahead are not typically improved by accounting for changes in existing wealth. Bhardwaj (2003) has stated the literature on globalization, He found the pervasiveness of the west’s perception of the world affect on Indian investors that affects the trends in investor’s choice. They are hugely affected by the west’s views and so changes in Indian trends occur. Shrotriya (2003) conducted a survey on investor preferences in which he depicted the linkage of investment with the factor so considered while making investment. He says “There are various factors and their linkage also. These factors help us how to ensure safety, liquidity, capital appreciation and tax benefits along with returns.” Vasudev (2007) analysed the developments in the capital markets and corporate governance in India since the early 1990s when the government of India adopted the economic liberalization programme. The legislative changes significantly altered the theme of Indian Companies Act 1956, which is based on the Companies Act 1948 (UK). The amendments, such as the permission for nonvoting shares and buybacks, carried the statute away from the earlier “business model” and towards the 'financial model' of the Delaware variety. Simultaneously, the government established the Securities Exchange Board of India (SEBI), patterned on the Securities and Exchange Commission of US. Through a number of other policy measures, the government steered greater investments in the stock market and promoted the stock market as a central institution in the society. The article points out that the reform effort was inspired, at least in part, by the government’s reliance on foreign portfolio inflows into the Indian stock market to fund the country’s trade and current account deficits.
- 32. 32 | P a g e Johnson (2008) has stated that Product quality is probably under-valued by firms because there is little consensus about appropriate measures and methods to research quality. The authors suggest that published ratings of a product's quality are a valid source of quality information with important strategic and financial impact. The authors test this thesis by an event analysis of abnormal returns to stock prices of firms whose new products are evaluated in the Wall Street Journal. Quality has a strong immediate effect on abnormal returns, which is substantially higher than that for other marketing events assessed in prior studies. In dollar terms, these returns translate into an average gain of $500 million for firms that got good reviews and an average loss of $200 million for firms that got bad reviews. Moreover, there are some important asymmetries. Rewards to small firms with good reviews of quality are greater than those to large firms with good reviews. On the other hand, large firms are penalized more by poor reviews of quality than they are rewarded for good reviews. The authors discuss the research, managerial, investing, and policy implications. Patnaik and shah (2008) has analysed on the preferences of foreign and domestic institutional investors in Indian stock markets. Foreign and domestic institutional investors both prefer larger, widely dispersed firms and do not chase returns. However, we and evidence of strong differences in the behavior of foreign and domestic institutional investors. Mayank (2009) has analysed the role of two important forces - the regulator and the capital market as determinant of external finance in transition economies analyses the changing pattern and future prospectus of external finance to India and reviews the role of external finance. Under this framework, the study evaluates current Indian corporate governance practices in light of external finance.
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- 34. 34 | P a g e OBJECTIVES OF THE STUDY The study has been undertaken in order to achieve the following objectives: To know investor’s perception regarding investment in stock market To take an overview of the Indian Stock Market and encapsulate the various investment avenues available. To study the investment behavior of investors and the factors that affects their investment decision. Research Methodology is a way to systematically solve the research problem. The Research Methodology includes the various methods and techniques for conducting a research. Research is an art of scientific investigation. In other word research is a scientific and systematic search for pertinent information on a specific topic. The logic behind taking research methodology into consideration is that one can have knowledge about the method and procedure adopted for achievement of objective of the project. 4.1 RESEARCH DESIGN: Research design is the conceptual structure within which research is conducted. It constitutes the blueprint for collection, measurement and analysis of data was a descriptive research. Descriptive research involves collecting numerical through self- reports collected, through questionnaires or interviews (person or phone), or through observation. For present study, the research was descriptive and conclusion oriented. 4.2 SAMPLING DESIGN: 4.2.1 Universe: The Universe is most commonly defined as everything that physically exists: the entirety of space and time, all forms of matter, energy and momentum, and the physical laws and constants that govern them. All those persons who make investment. Theoretical Universe: It included investors make investment in all over world.
- 35. 35 | P a g e Accessible Universe: It included investors make investment in Indian Stock Market. 4.2.2 Sampling unit – The target population must be defined that has to be sampled. The sampling unit of research included students and professionals residing in Bhilai city. 4.2.3 Sample size – This refers to number of respondents to be selected from the universe to constitute a sample. The sample size of 50 Investors was taken. 4.2.4 Sampling Technique – Convenience Sampling was used to select the sample. Convenient sampling is a non probability sampling technique that attempts to obtain a sample of convenient elements .In case of convenience sampling, the selection of sample depends upon the discretion of the interviewer. In this project, Questionnaire Method was used for the collecting the data. With the help of this method of collecting data, a sample survey was conducted. 4.3 DATA COLLECTION AND ANALYSIS: 4.3.1 Data Collection Information has been collected from both Primary and Secondary Data. Secondary sources- Secondary data are those which have already been collected by someone else and which already had been passed through the statistical process. The secondary data was collected through web sites, books and magazines. Primary sources- Primary data are those which are fresh and are collected for the first time, and thus happen to be original in character. The primary data was collected through direct personal interviews (open ended and close ended questionnaires) 4.3.2 Tools of Presentation & Analysis: To analyze the data obtained with the help of questionnaire, following tools were used. 1. Likert scale: These consist of a number of statements which express either a favourable or unfavourable attitude towards the given object to which the respondents are asked to react. The respondent responds to in terms of several degrees of satisfaction or
- 36. 36 | P a g e dissatisfaction. 2. Percentage, Bar Graphs and Pie Charts: These tools were used for analysis of data
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- 38. 38 | P a g e DATA ANALYSIS AND INTERPREATATION Demographic Profile of investors Table 5.0: Demographic Profile of investors Demographics No. of respondents Percentage of respondents Age: Less than 20 years 20-40 Greater than 40 0 20 30 0 40 60 TOTAL 50 100 Qualification: Matriculation Under Graduate Post Graduate 0 38 12 0 76 24 TOTAL 50 100 Occupation: Service Profession Business Student 19 06 15 10 38 12 30 20 TOTAL 50 100 Income(Per Month): Less than Rs.20000 Rs.20000-Rs.40000 Greater than Rs40000 10 25 15 20 50 30 TOTAL 50 100 Analysis & Interpretation: It was found that the major population of investors was greater than 40yrs and 60% was of 20- 40 yrs. And 76% respondents were under graduate and 24% were post graduate. 35% of respondents were doing service. And majority of respondents i.e. 50% earn income between Rs.20000-40000 per month. It means majority of investors was greater than 40 years having income in between Rs 20000-40000.
- 39. 39 | P a g e Statement 1. Awareness regarding types of Investment Instruments Table No. 5.1 Type of investment option the person is aware of Types of Investment Instruments No. of Respondents Percentage of Respondents Shares 15 30% Mutual Funds 23 46% Debentures 5 10% Bonds 5 10% Derivatives 2 4% Total 50 100% Figure No.5.1 Type of investment option the person is aware of Analysis & Interpretation: Above pie-chart shows that 45% investors were aware of the mutual fund, 25% investors were aware of shares, 15% investors were aware of debentures, 10% investors were bonds. It means majority of persons aware about mutual fund whereas shares and debentures were of second importance.
- 40. 40 | P a g e Statement 2 .To know the type of investment option the person has been investing Table No.5.2 Type of investment option the person has been investing Investment alternative No. of Respondents Percentage of Respondents Shares 15 30% Mutual Funds 15 30% Debentures 10 20% Bonds 5 10% Derivatives 5 10% Total 50 100% Figure No.5.2 Type of investment option the person has been investing Analysis & Interpretation: From the survey it was found that 30% respondents invest in Mutual funds, 25% invest in Shares and 20% invest in Debentures. Thus, it can be stated that maximum people invest in Mutual Funds whereas shares are having 2nd importance.
- 41. 41 | P a g e Statement 3 .To know the rates at which the investment grow Table No.5.3 The rates at which the investment grow Investment Growth Rate No. of Respondents Percentage of Respondents Steadily 0 0% At an average rate 5 10% At fast rate 45 90% Total 50 100% Figure No.5.3 The rates at which the investment grow Analysis & Interpretation: From the survey it was found that 90% respondents wants their investment grow at fast rate whereas only 10% respondents were in the favour of investment growth at average rate. Statement 4. To know the frequency of investment by the Respondents. Table No. 5.4 Frequency of investment
- 42. 42 | P a g e Frequency of Investment No. of Respondents Percentage of Respondents Daily 0 0% Weekly 10 20% Monthly 24 48% Yearly 16 32% Total 50 100% Figure No.5.4 Frequency of Investment Analysis & Interpretation: From the above table & chart it was found that 45 respondents invest monthly, 35 invest yearly and there were 20 respondents who invest daily. Thus, it can be stated that majority of the investors invest monthly in stock market. Statement 5 .To know the percentage of income that respondent invest annually Table No. 5.5 The percentage of income that respondent invest annually
- 43. 43 | P a g e Annual Income Invested No. of Respondents Percentage of Respondents Up to 10% 7 14% 10-15% 11 22% 15-20% 20 40% More than 20% 12 24% Total 50 100% Figure No. 5.5 The percentage of income that respondent invest annually Analysis & Interpretation: From the above table & chart, it was found that 40 respondents invest 15-20% of their annual income, 24 respondents invest more than 20% of their annual income, 22 respondents invest up to 10-15% of their income and 14 respondents invest up to 10% of their income in different investment avenues. Thus, it can be concluded that majority of investors invest 10% to 20% of their monthly income. Statement 6. To know the respondent’s influence on Investment decision. Table No.5.6 The respondent’s influence on Investment decision
- 44. 44 | P a g e Sources No. of Respondents Percentage of Respondents Self 24 48% Friends & Relatives 10 20% Service providers & consultants 6 12% Newspapers & Advertisement 5 10% Agents 3 6% Workshops & Seminars 2 4% Total 50 100% Figure No.5.6 The respondent’s influence on Investment decision Analysis & Interpretation: From the above table & chart, it was found that multiple aspects for investing influenced respondents.48% respondents take investment decision on the basis of their personal evaluation where as 20% respondents invest because of influence of friends & relatives, the consultants influences 12% respondent and the advertisement influences 10% respondents. It can be stated that majority of the persons are influenced by their own while opting for investment tool.
- 45. 45 | P a g e Statement 7. To Know The Factors That Were Considered While Investing. Table No. 5.7 The Factors That Were Considered While Investing Investment Factors No. of Respondents Percentage of Respondents Return on investment 15 30% Tax benefits 9 18% Capital appreciation 7 15% Maturity period 3 6% Risk 6 12% Safety of principal 3 6% Liquidity 7 14% Total 50 100% Figure No. 5.7 The Factors That Were Considered While Investing Analysis & Interpretation: From the above table & chart, it was found that multiple aspects for investing influenced
- 46. 46 | P a g e respondents.48% respondents take investment decision on the basis of their personal evaluation where as 20% respondents invest because of influence of friends & relatives, the consultants influences 12% respondent and the advertisement influences 10% respondents. It can be stated that majority of the persons are influenced by their own while opting for investment tool. Statement 7. To Know The Factors That Were Considered While Investing. Table No. 5.7 The Factors That Were Considered While Investing Investment Factors No. of Respondents Percentage of Respondents Return on investment 15 30% Tax benefits 9 18% Capital appreciation 7 15% Maturity period 3 6% Risk 6 12% Safety of principal 3 6% Liquidity 7 14% Total 50 100% Figure No. 5.7 The Factors That Were Considered While Investing
- 47. 47 | P a g e Analysis & Interpretation: From the survey it was found that the maximum respondents considered return on investment was most important factor, 18% respondents considered tax benefits as an important factor and 14% respondents considered capital appreciation as an important factor. It can be stated that majority of investors were consider return as an important factor while investing. Statement 8. To Know Investor’s Action In Case Of Stock Market drop. Table No. 5.8 The Investor’s Action In Case Of Stock Market drop Investor’s preference in case of losses No. of Respondents Percentage of Respondents Transfer funds into secure investment 15 25% Wait to see if investment improves 20 40% Invest more funds 13 30% Withdraw funds & stop investing 2 5% Total 50 100% Figure No. 5.8 The Investor’s Action In Case Of Stock Market Drop
- 48. 48 | P a g e Analysis & Interpretation: From the survey it was found that maximum respondents would wait to see if their investment improves and start generating funds, 30% respondents would invest more funds, 25% respondents would transfer funds into secure investment and 5% respondents would stop investing. It can be stated that majority of investors would like to wait to see whether investment improves or they can invest more funds. Statement 9. To Know The Decision Regarding Other Investment Policy Table no. 5.9 The Other Investment Policy Investment Decision No. of Respondents Percentage of Respondents Yes 49 98% No 1 2% Total 50 100% Figure 5.9 The Other Investment Policy Analysis & Interpretation: From the survey it was found that 98% respondents have the other investment policy where as 2% respondents do not have the other investment policy.
- 49. 49 | P a g e Statement 10. To Know the Satisfaction Level Of Respondents With Their Investment Option Table no. 5.10 Important Factors for Choosing The Investment Option Range Max. Score=100*5=500 (Highly Satisfied) Avg. Score=100*3=300 (Neutral) Min. Score=100*1=100 (Highly Dissatisfied) Analysis & Interpretation: Most of the respondents have given the highest summated score to shares. And the second most important investment option is debentures which influenced the decision regarding investment. Other important factor is mutual fund coverage which has the 332 summated score. Return on derivatives get the 280 summated score. Particulars Highly Dissatisfied Dissatisfied Neutral Satisfied Highly Satisfied Summated Score (1) (2) (3) (4) (5) Shares 10 6 14 30 40 384 Mutual funds 12 15 20 35 18 332 Bonds 20 18 35 19 8 277 Debentures 15 10 15 40 20 340 Derivatives 30 10 20 30 10 280
- 50. 50 | P a g e Statement 11. Important Factors That Was Considered While Investing Table No. 5.11 Important Factors That Was Considered While Investing Particulars Highly Dissatisfied Dissatisfied Neutral Satisfied Highly Satisfied Summated Score (1) (2) (3) (4) (5) Return on investment 0 0 4 30 66 462 Tax benefits 0 0 18 48 34 416 Capital appreciation 0 0 20 40 40 420 Maturity period 5 5 40 30 20 355 Risk 5 10 20 35 30 375 Safety of principal 10 20 40 20 10 300 Liquidity 15 15 20 30 20 325 Range: Max. Score=100*5=500 (Highly Satisfied) Avg. Score=100*3=300 (Neutral) Min. Score=100*1=100 (Highly Dissatisfied) Analysis & Interpretation: Most of the respondents have given the highest summated score to Return on investment. And the second most important factor is Capital appreciation which influenced the decision regarding investment. Other important factor is Tax benefit which has the 416 summated score.
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- 52. 52 | P a g e FINDINGS OF THE STUDY Following findings were generated from the study:- 1. Maximum investors are aware of all the investment options. 2. Investors do not invest in a single avenue. They prefer different avenues and maximum investors prefer to invest in shares, mutual funds & debentures. 3. Maximum investors wants their investment grow at fast rate. 4. The investment decision of investors is influenced by their own decision and through friends & relatives. 5. Different factors considered by investors while investing are return, risk, tax benefits, capital appreciation and the most prominent factor is the return on any investment avenue. 6. Majority of investors invest 15-20% of their annual income. 7. Maximum investors invest on monthly basis. 8. The investors investing in different avenues are highly satisfied with the return generated by their investment option. 9. Maximum investors have other investment policies. 10. The most important factor is Return which influenced the decision regarding investment.
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- 54. 54 | P a g e RECOMMENDATIONS Following were the recommendations of the study: The various investment tools which were mostly preferred by the investors were shares, mutual funds etc. So there should be various other means to create awareness regarding the potential of other instruments and the tools which can be more beneficial to the investors. The investors consider various factors while making investment like risk, return, liquidity etc. There should be rational thinking so that the investor is able to know that at what point of time they need capital appreciation instead of reducing the risk and when they need return instead of liquidity. The preferred time span of investment by the investors depends upon the need of the investor that whether they wants to have early and high returns or wants to have stable returns, most probably the long time span is suitable because the returns are high and safety is also there. The satisfaction levels of various investors are different due to different investment alternatives they opt for. If they will be aware of each type of alternatives and the worth of the alternatives then investing as per that there satisfaction level will also be high. Investors should have the complete knowledge of stock market.
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- 56. 56 | P a g e LIMITATIONS OF STUDY It is said, “What is worth doing is worth doing best”. In other words a person should aim at perfection. However in real life this is not always possible. Human have to work within the limitation set by the nature and society. That is to say even though every possible effort has been made to make this project report authentic and comprehensive however many constraints were also at play. The major limitations of the study are:- Due to paucity of time and resources a countrywide survey was not possible. Hence only Bhilai city has been taken for the study. Since a smaller sample was chosen so it may not be a true representative of the population under study. The possibility of the respondent’s responses being biased cannot be ruled out. Most of the study was restricted to Internet and published data because of the non availability of primary data. The information given by the respondents might be biased because some of them might not be interested to given correct information.. Some of the respondents could not answer the questions due to lack of knowledge. Some of the respondents of the survey were unwilling to share information.
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- 58. 58 | P a g e CONCLUSION Indian Stock Markets is one of the oldest in Asia. Its history dates back to nearly 200 years ago. The earliest records of security dealings in India are meager and obscure. The East India Company was the dominant institution in those days and business in its loan securities used to be transacted towards the close of the eighteenth century. The nature of investment differs from individual to individual and is unique to each one because it depends on various parameters like future financial goals, the present & the future income model, capacity to bear the risk, the present requirements and lot more. As an investor progresses on his/her life stage and as his/her financial goals change, so does the unique investor profile. Maximum investors are aware of all the investment options. Investors do not invest in a single avenue. They prefer different avenues and maximum investors prefer to invest in shares, mutual funds & debentures. The investment decision of investors is influenced by their own decision and through friends & relatives. Majority of investors invest 15-20% of their annual income.. The most important factor is Return which influenced the decision regarding investment. In today’s scenario when all services are going to be online or in electronic form Kotak Securities is creating awareness of online trading that client can trade from anywhere from the World. Risk management team of Kotak Securities care of client portfolio and whenever the value of his portfolio will go decrease by 30% client always informed by his Relationship Manager.
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- 60. 60 | P a g e References REFERENCES Charles (1999). Economic Policy, Astonishing growth in Americans' stock portfolios. The Icfai Journal of Stock Market, 6 (3): 43-60. Available at http://papers.ssrn.com/sol3/results.cfm last accessed on April21,2015. Dijk (2013). Economic Policy, The Size Effect in Equity Returns. Empirical Research Findings. Journal of Financial Management and Analysis, 21(1).Available at http://papers.ssrn.com/sol3/results.cfm last accessed on April18, 2015. Johnson (2014). The Value of Quality: Stock Market Returns to Published Quality Reviews. The Icfai Journal of Applied Economics, 7(3):7-22. Available at http://papers.ssrn.com/sol3/results.cfm last accessed on April18, 2015. Mayank (2009). Performance Corporate Governance as a Determinant of External Finance in Transition Economies: A Case Study of India .The Icfai University Journal of Applied Economics, 8(1): 31- 44. Available at http://papers.ssrn.com/sol3/results.cfm last accessed on June5,2009 Introduction on Indian Stock Market available at http://www.banknetindia.com/ last accessed on April 5, 2015. Introduction on Bombay Stock Exchange available at last accessed on Feb 15, 2015. Introduction on National Stock Exchange available at last accessed on Feb 15, 2015. Introduction on Online Investors & Traders available at http://www.traderji.com/ last accessed on April12, 2015 Introduction on Types of investment available at http://finance.mapsofworld.com/investment/types/ last accessed on April12 , 2015.
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