A

PROJECT STUDY REPORT

ON
TRAINING UNDERTAKEN AT

RELIGARE SECURITIES LTD.

RELIGARE AT GROWTH & INDIVIDUAL INVESTMENT
PREFERENCE IN EQUITIES
V\S
OTHER INVESTMENT OPTIONS

Submitted as partial fulfillment for the award of the degree of

MASTER IN BUSINESS ADMINISTRATION

SUBMITTED BY

SUBMITTED TO

Manish Yadav

Dr. Sonal Jain

MBA-IV SEM

Head of the Department

2007-2009

DEEPSHIKHA COLLEGE OF TECHNICAL EDUCATION, JAIPUR

Preface
1

Religare Securities Ltd. is one of the leading share broking companies, having its head office
in Mumbai; it has its branches in almost all the parts of India. The company is not just a share
broking house it is a wealth management company which manages the wealth of its clients.
The company has appointed a large number of franchisees across India and treats its
franchisees as its business partner. The company earns maximum of its revenue through
brokerage.
The project is Religare at growth & individual investment preference in equities vs. other
investment options. As the title suggests the basic objective of project is to highlight Growth
services at Angel broking Ltd.
For the purpose a survey was conducted which included visiting different brokerage firms, as a
client and their products and services were studied.

ACKNOWLEDGEMENT

I express my sincere thanks to my project guide, Mr. Mukesh Gupta, Management Training
Officer, of department,

at Religare Securities Limited for guiding me right form the

inception till the successful completion for the project. I sincerely acknowledge him for
extending their valuable guidance, support for literature, critical reviews of project to me with all
stages of this project.
I would also like to thank the supporting staff of Religare Securities Limited Department, for
their help and cooperation throughout our project.

Manish Yadav

DECLARATION
3

I Manish Yadavs/o Mr. M.C.Yadav hat the project report title Growth and Individual
Investments project report my original work and this has not been used for any purpose
anywhere.

MANISH YADAV
MBA Part II

CERTIFICATE FROM COLLEGE

4

To Whom So Ever It May Concern

This is certifying that Mr. MANISH YADAV has prepared this project report titled Growth and
Individual Investment based on this project study. This project report is his original work and
it is submitted for the fulfillment of the MBA Degree.
Wish him good success for his future career.

Sonal Jain
(Project Guide)

EXECUTIVE SUMMARY

Over the last few years, the Indian economy has been slipping. Companies have been shaken
up and are now faced to wake up from the days of deep slumber. Now, as the top echelons of
India Inc some to grip with the continuing recession in the Indian economy and as the
prolonged fall in demand across industries becomes more evident, the mood is subdued. A
total change of mindset has taken place, as the chieftains of corporate India wake up and
come to terms with reality.
The Growth service has also not been alienated from the effects of widespread recession and
is vying hard to cope with the ever-changing environment as well as competitive aura. As a
result, the trio- convergence, competition and consolidation, has been continuously dominating
the Growth segment, and the same phenomenon is envisaged in the forthcoming years as
well.
This would however mean wider and better services for the customers. The term Growth and
Individual Investment Service has now acquired a much larger meaning than just dealing with
protection. For the past few years, companies have been actively focusing on increasing their
distribution channels by introducing facilities.

CONTENTS
6

S.No.

Particulars

Page No.

1.
2.
3.

Introduction to the Industry

Introduction to the Organization
Research Methodology

6
16
36

3.1 Title of the Study

3.2 Duration of the Project
3.3 Objective of the Study
3.4 Type of Research
3.5 Sample Size
3.6 Method of Selecting Sample
3.7 Scope of study
3.8 Limitation of the study
4.
5.
6.
7.
8.
9.

FACTS & FINDINGS

SWOT ANALYSIS
CONCLUSION
QUESTINORE
RECOMMENDATION
APPENDIX

86
111
114
115
118
119

10.

BIBLIOGRAPHY

120

. INTODUCTION

TO THE

INDUSTRY

Life is all about dreams and aspirations. It is about living happily, not just today planning
7

for a happy tomorrow. Every person invests in different investment avenues for planning for
a better future. In todays scenario, different avenues are available to the investors.
These are

Life insurance
Mutual funds
General insurance
Fixed deposits

For the investors it is never easy to analyze that whether they should invest in that option
or not. It really requires a lot of mental exercise to determine so.
Just as we put our eggs in different baskets when we plan our investments, similarly, we
should allocate our funds between different policies as each policy can be designed
to meet different needs. It can make easy with the help of portfolio manager. His main aim
is to help u plan and protect your wealth so that you chase your dreams and aspiration
and live happily today and tomorrow. There are a comprehensive range of investment
products that will enhance your saving and provide financial security and protection to
you and your family.
The course of the life can change with time. But then, it is still life. What one need is a
sound financial plan to take care of his investment needs and a sound insurance plan to
cover life risks.
This project report is a comprise study on the portfolio management services. It also
analyzes the customer perception about investment avenues and identifies different
factors that affect portfolio management.

THE HISTORY OF INDIAN E-BROKING INDUSTRY

The first publicly issued security can be tracked back to the fourteenth century in Venice
where the government made the first known issue of bonds. These government securities
were purchased by merchants and landowners as investments.
In and around 1750s in England, traders in the shares of early companies would
commonly meet in Jonathans Coffee House to trade shares and make business deals. Early
share bids and offers were written on the Coffee House walls and the trading process was
highly unregulated, with insider trading forming the basis for most investment decisions.
8

By 1773, Trading Clubs had formed, and in 1801 a group of traders raised 20,000
pounds to build the London Stock Exchange in Capel Court. A similar process was occurring in
America. By the early 1790s many merchants had begun trading shares. Just as in London,
these early traders often met at coffeehouses in an informal environment.
In 1792, 24 Brokers who each paid $400 for a "trading seat" signed the Buttonwood
Tree Agreement. This agreement outlined the regulations under which shares could be bought
and sold. These regulations formed the basis for trading rules that still exist today and led to
the formation in 1817 of the New York Stock Exchange. Much water has passed under the
bridge since then and we forward all the way to late 1990s.
By late 1990s, most of the stock exchanges had been automated, and the open outcry
method of trading was the thing of the past. Most stock exchanges began to use computers to
replace floor traders. Floor traders take phone and computer orders from brokers, and
negotiate a trade with stock specialists at trading stations on the trading floor. The internet
orders placed by clients are first processed and authorized through the stock brokers
computer system before being automatically placed on the stock exchanges computer
systems. This period saw the rise in popularity and acceptance of online stock broking.

OBJECTIVE OF THE STUDY

Main objective of the project is to find out the strategies of different E-Broking firms and
evaluate them. Project is about to penetrate the competitors of ANGEL BROKING LTD.
Conclusion of this project can give an idea of strategies of different companies which may be
helpful to the company. Now days all the broking companies in India are trying to establish
themselves in the competitive market. They are introducing innovative marketing strategies to
survive in the market. Many other private companies are looking to enter in the Indian Broking
market .so it is very essential to a company to innovate their marketing strategies in terms of

Well educated and capable employee in the agency

Marketing of their products

Deployment of their products

Targeting the right and potential customers

Differentiating from other companies

Future plan of the company

This study consists of to find out the marketing strategies of different Broking companies which
are the competitors of ANGEL BROKING LTD.

INDIAN STOCK MARKET

10

Thee origination of the Indian securities market may be traced back to 1875, when 22
enterprising brokers under a Banyan tree established the Bombay Stock Exchange (BSE).
Over the last 125 years, the Indian securities market has evolved continuously to become
one of the most dynamic, modern and efficient securities markets in Asia. Today, Indian
markets conform to international standards both in terms of operating efficiency.

Structure and size of the markets:

Today India has two national exchanges, the Bombay Stock Exchange (BSE) and the
National Stock Exchange (NSE).Each has fully electronic trading platforms with around
9400 participating broking outfits. Foreign brokers account for 29 of these.
There are some 9600 companies listed on the respective exchanges with a combined
market capitalization near $125.5bn. Any market that has experienced this sort of growth
has an equally substantial demand for highly efficient settlement procedures.
In India 99.9% of the trades, according to the National Securities Depository, are settled in
dematerialized form in a T+2 rolling settlement environments. In addition, trades are
guaranteed by the National Clearing Corporation of India Ltd. (NSCCL) and Bank of India
Shareholding Ltd. (BOISL), Clearing Corporation houses of NSE and BSE respectively. The
main functions of the Clearing Corporation to work out.
Furthermore, each exchange has a Settlement Guarantee Fund to meet with any
unpredictable situation and a negligible trade failure of 0.003%. the Clearing Corporation of
the exchanges assumes the counter-party risk of each member and guarantees settlement
through a fine-tuned risk management system and an innovative method of online position
monitoring. It also ensures the financial settlement of trades on the deliver the required
funds and/or securities with the help of a settlement guarantee fund.

Advantages Of Online Trading

11

The first major advantage of trading online is the ability to have total control over ones
investments. Before the advent of online trading, investors had to go through a stockbroker in
order to buy and sell their stocks. This process is tedious, can take up value able time and is
costly. In addition to that, brokers can sometimes persuade investors to buy and sell certain
stocks because of personal reasons.
When investors trades online they have total control of their money. In addition to that,
investors investors have the luxury of speed. They can buy and sell stocks quickly, which can
help them save money. An example of this is if investors want to buy certain stocks at low
price, by the time they call their broker and eventually buy the stock the price could have
increased during that time period. This same example applies to when investors want to sell a
stock at a certain time. While the investors are calling their broker and the stock is being sold,
the price could have dropped. This could sometimes cost investors thousands of dollars. With
online trading, people can buy and sell at the exact time they choose to do so because it is just
a mouse click away.
Online trading is also beneficial because it reduces the cost of transaction. Instead of
paying broker , which can be very costly , investors can trade online and pay a small fee to
their company. this saves the customers from having to pay commission to the stockbroker.
Furthermore, since the explosion of online brokerages has driven the cost of transactions way
down, trading online is cheaper than ever. This is because all the companied are competing for
business continue reducing their costs to attract customers.
The last major advantage of trading stocks online is that more information is available
then ever before. Investors can get the most up to date stock quotes and can reach any
company they plan on buying stock for. This information was previously only available to
stockbrokers. With the new technology the internet offers, it is available to everyone. With this
information the investors can become more educated and make good decision on the stocks
they want to buy and sell. One such website that allows users to gather information is
Quote.com. Quote.com has graphic charts that updates the investors portfolio throughout the
day and also lets investors create watch lists or mock portfolios that monitor alternative
investment options. This means that customers can plan out different investing stratifies and
see how those compare to the ones they are already invested in. These advantages have
contributed greatly to the increase of trading online.

Disadvantages of online training

One major disadvantage with online trading is that there are many security risks. The
internet is a wonderful but dangerous place to do business. Hackers have the ability to access
personal information on anyone who has ever searched the internet, which includes credit card
information. This was the main reason a company like Charles Schwab was reluctant to start
trading online. Although the percentage is small, there is still a small chance that hackers can
12

access ones account (price 2) companies are taking the most serious precautions on this
matter.
Another drawback to trading online is that, while companies offer trades that are quick
and on the spot, in actuality it can take up to several hours to complete or even not to be
completed at all. According to the Securities and Exchange Commission, E-traders registered
more than 3,300 complaints in the 12 months ended in September 1999, a 197 percent
increase over 1998 and nearly 2,000 percent higher than in 1997. This means that here was
an increase in problems that the web sites were having. This could have serious effects on
investors because they could think they bought a stock or sold a stock at a certain time but in
actuality the transaction registered late or not at all costing that investor money.
The internet is unpredictable and stable. One can never know when a web site will fail.
In situations where there is a problem like this, investors can usually call their brokerage firm
and the problem is fixed right away. However, the problem with online trading companies is
that they are too large and are not easily reached by e-mail or phone. This is the main
concern for online brokerage firms and they are trying their best to alleviate these problems.
Finally the most important problem with online trading is that it is so quick and easy to
make transaction, that money can be lost just as quick and just as easily. Some people that
invest online do not know how the stock market words and think they can just invest in
anything and it will make them money. According into foresters search, two types of traders
have already moved online the aggressive affluent and those who want to get rich quick..
These two groups make up 70 percent of the people that want investors trading online today.
These people can make rash decisions and lose a lot of their money. People like this generally
think that investing in the stock market is like gambling in Las Vegas. This is a dangerous
attitude and could make people lose money they cannot afford to lose.

13

Major Players in the BROKING Industry in India

SHAREKHAN

ANAND RATHI

MOTILAL OSWAL

IL&FS

INDIABULLS

HDFC SECURITIES

INDIA INFOLINE

ANGELBROKING

RELIGARE

10

RELIANCE MONEY

11

ICICI DIRECT

12

BONANZA

13

MAGAL KESHAV

14

KOTAK SECURITIES

15

UTI SECURITIES

16

GEOJIT

17

KARVY

18

MAN FINANCIAL

23

JP MORGAN STANLEY

24

ASIT C METHA

14

INTRODUCTION OF THE ORGANIZATION

COMPANY PROFILE OF Religare BROKING LTD
Mr. Dinesh Thacker is the man behind the successful building of religare broking as
Indias leading retail stock broking house with his vision, devotion, dedication, keen foresight
and zeal to excel. He is among the first generation stockbroker who is credited for
conceptualizing and the subsequently promoting angel group in 1987. He was attracted
towards the stock market due to its prospects of fast growth. He proved his skill and abilities
through efficient trading of stocks by using advanced and innovation tools of technical analysis.
He started his operations as a sub-broker from a small office at dalal street with a client
base of just around 25 clients and total staff strength of 3 employees. With his 100% focus on
the retail clientele coupled with his expertise in investment advisory services, he has scaled
much greater height as is evident from our network strength and nation wide presence today.
The Angel Group has emerged as one of the top 5 retail stock broking houses in India, having
memberships on Religare BSE, NSE and the two leading commodity exchanges in the country
i.e. NCDEX and MCX. Broking Ltd is also registered as a depository participant with CDSL. It
is the only 100% retail stock broking house offering a gamut of retail centric services like
Research, Investment Advisory, and Wealth Management Services, E-Broking & Commodities
to individual investor.

VISION
15

TO PROVIDE BEST VALUE FOR

MONEY TO INVESTORS THROUGH INNOVATIVE
PRODUCTS TRADING/INVESTMENT STRATEGIES,
STATE OF THE ART TECHNOLOGY AND
PERSONALISED SERVICE

BUSINESS PHILOSOPHY

ETHICAL PRACTICES & TRANSPARENCY IN ALL OUR DEALINGS

CUSTOMER INTEREST ABOVE OUR OWN
ALWAYS DELIVER WHAT WE PROMISE
EFFECTIVE COST MANAGEMENT

VALUES

INTEGRITY
TEAMWORK
QUALITY MINDSET
ENTREPRENEURSHIP
SERVICE ORIENTATION
PASSION & COMMITMENT

ABOUT Religare
We have a Pan India presence with more than 5000+ intermediaries.
We offer services like:
Equity Broking
Commodities
Depository
Research
E-broking
Advisory
Portfolio Management Services
16

 Mutual Fund Distribution

A client base of 4, 50,000 + active Investors is serviced by our strong team of 4600 +
employees across branches.
The above distribution makes our client servicing levels one of the highest in the industry.
50 member research team doing technical, fundamental, derivative and commodity analysis,
one of the largest in the industry.
First broking house to start 100% retail focus research in the industry

Religare GROUP COMPANIES:

BSE- Religare BROKING LTD

NSE- Religare CAPITAL AND DEBT MARKET LTD

NCDEX & MCX- Religare COMMODITIES BROKING (P) LTD

17

Award
Religare was awarded the coveted the Major Volume Driver trophy from BSE for the Year
2004-2005, 2005 -2006 & 2006 -2007.That means the maximum number of trade on BSE has
been done from Religare Broking Ltd

TIE UP BANKS

HDFC

ICICI

AXIS

CORPORATION

ORIENTAL BANK OF COMMERCE

KARNATAKA

YES

18

Retail spectrum

Wealth spectrum
spectrum

Institutional spectrum

INVESTMENT GATEWAY THROUGH RELIGARE

19

20

RANBAXY
India's first multinational company
Bhai Mohan Singh was the founder of what can be termed India's first multinational company.

The origin
The early days saw Bhai Mohan Singh take over Ranbaxy from Mr. Ranjit Singh and Dr
Gurbux Singh of Amritsar, who were distributors for A. Shionogi, a Japanese pharmaceutical
company manufacturing vitamins and anti-TB drugs. In fact, Ranbaxy's name was a fusion
of the two earlier promoters.

RANJIT

GURBU
X

Ranbaxy Laboratories Ltd. (RLL) is the largest pharmaceutical company incorporated in

India. It is also amongst the top league globally and is ranked 9th largest generic company
worldwide. Ranbaxy is also credited with the tag of true Indian multinational.

21

The company traces its roots to a chemist shop in Delhi. It is one of the first Indian
pharmaceutical companies to start a joint venture abroad. Rapid growth of Ranbaxy is
attributed mainly to its focused research and joint ventures in India and abroad. It is also
innovation and market driven, with a strong distribution network. The company was able to
grow successfully in highly competitive markets. In the current business scenario, Ranbaxy is
focusing on innovation, alliances, mergers and globalization to achieve its long-term vision of
becoming a global pharmaceutical giant with a turnover of $1 billion by 2004. The fruits of such
efforts are evident in the latest financial result, as a large chunk of its income comes from new
products and exports of generics. The growth of Ranbaxy can be attributed to its ability to
identify good windows of opportunity and its ability to grow by leveraging innovation, regulatory
knowledge and alliances.

PHARMACEUTICAL
S

Largest in India

Category leader in India and among Top 10 globally

Manufacturing operations in 11 countries
Products sold in over 125 countries
Sales in excess of USD 1.3 billion

HEALTH CARE

Second Largest in India

Currently nearly 1800 beds across India; target of 6,000 hospital Beds by 2008
Fastest growing network with 11 hospitals and 16 heart command centers
Healthcare, Telemedicine, Education & Research
Second largest hospital chain in India

22

HEALTH CARE

Largest in South East Asia

South & South East Asias largest Pathology labs network

Global accreditations and Compliance
First in India to have two Clinical Reference Labs
A network of 19 laboratories and growing across India
600 Sample Collection Centers in 360 cities across the globe
Over 4 million satisfied customers every year

INFORMATION
TECH .

Fortis Financial Services Limited specializes in Enterprise Solutions for BFSI Segment.
Software Solutions Products and Offshore Development. (Indias largest Internet
Trading Product)
KPO/BPO for BFSI Clients.
Enterprise Management and Infrastructure Solutions

23

GROUP
STRUCTUR
E

Fig. 1- promoter group

24

About Religare Enterprises Limited

Religare, a Ranbaxy promoter group company, is one of Indias leading integrated financial
services institutions. This company offers different type services and would like to be seen as a
true Investment Gateway of India. The company provides many services such as equities,
commodities, insurance to wealth advisory, portfolio management services (PMS), personal
financial services, investment banking and institutional broking services in terms of its client
and business interface the services are broadly clubbed across three key business verticalsRetail, wealth management and the institutional spectrum. Religare Enterprises Ltd. Is the
holding company for all its business, structured and being operated through various
subsidiaries. Religare Securities Ltd. (RSL) is a fast growing subsidiary of Religare. RSL is
the member of National stock Exchange (NSE) of India, Bombay Stock Exchange (BSE) of
India, depositary participant with National Securities Depositary Ltd and Central Depositary
Ltd.
Religare Enterprise Ltd is a Ranbaxy promoter group company
6 Regional offices
25 Zonal Offices
Present in 1000 location all over India
Present in 350 Cities & Towns
Total group employees 5,500 plus
Present in Retail, Wealth and Institutional Spectrum

R
E
L
I
G
A
R
E
T

Among the largest Retail brokerage branch network, presentEbeyond Tier-I and Tier-II
cities in India
Overseas presence established in London, with
parts of the globe in this financial year

25

N
aggressive T
plans
E
R
P
R
I
S
E
S

of straddling other

Religare Realty Ltd.

Religare Finance Ltd.
Religare Finvest Ltd

Religare Securities Ltd.

Religare Commodities Ltd.

Religare capital Market Ltd

Religare Venture capital

Pvt. Ltd.
Religare Insurance Broking Ltd.

Religare wealth Management Services ltd.

Fig 2- Religare Enterprises Ltd

26

Vision - To build Religare as a globally trusted brand in the financial services domain and
present it as the Investment Gateway of India

Mission - To provide financial care driven by the core values of diligence & transparency

Brand Essence - Diligent, dynamic & ethical processes for wealth creation

Religare is a Latin word that translates as 'to bind together'. This name Religare was
chosen to reflect the integrated nature of the financial services the company offers. The name
27

is intended to unite and bring together the phenomenon of money and wealth to co-exist and
serve the interest of individuals and institutions, alike.
Symbol
The name is paired with the symbol of a four-leaf clover , a rare mutation of the common threeleaf clover. Traditionally, it is considered good fortune to find a four leaf clover as there is only
one four-leaf clover for every 10,000 three-leaf clovers found. Each leaf of the four-leaf clover
has a special meaning in the sphere of Religare.

The first leaf of the clover represents Hope. The aspirations to succeed. The dream of
becoming Of new possibilities. It is the beginning of every step and the foundations on which a
person reaches for the stars.

The second leaf of the clover represents Trust. The ability to place ones own faith in
another. To have a relationship as partners in a team. To accomplish a given goal with the
balance that brings satisfaction to all not in the binding but in the bond that is built.

The third leaf of the clover represents Care. The secret ingredient that is the cement in
every relationship. The truth of feeling that underlines sincerity and the triumph of diligence in
every aspect. From it springs true warmth of service and the ability to adapt to evolving
environments with consideration to all.

28

The fourth and final leaf of the clover represents Good Fortune. Signifying that rare
ability to meld opportunity and planning with circumstance to generate those often looked for
remunerative moments of success.

Hope. Trust, Care, Good fortune. All elements perfectly combine in the emblematic and
rare, four-leaf clover to visually symbolize the values that bind together and form the core of
the Religare vision

Religare Securities Limited

Equity Trading
Portfolio Management Services
Depository
Online Investment Portal
Institutional Equity Broking

Features of Religare A Good Trading Partner

29

Equity Trading
Trading in Equities with Religare truly empowers you for your investment needs. We ensure
you have a superlative trading experience through -

A highly process driven, diligent approach

Powerful Research & Analytics

One of the "best in class" dealing rooms

Further, Religare also has one of the largest retail networks, with its presence in more than
1460 locations across more than 450 towns & cities. This means, you can walk into any of
these branches and connect to our highly skilled and dedicated relationship managers to get
the best services.

The Religare Edge

Pan India footprint

Powerful research and analytics supported by a pool of highly skilled

Research Analysts

Ethical business practices

Offline/Online delivery models

Single window for all investments needs through you unique

Religare makes trading Easier and Better

30

 Personal Assistance
Dedicated relationship managers
Dedicated dealers who facilitate and serve your post trade needs

Research and advisory

Religare believe in providing research services for clients to facilitate their investment
decisions. The research team at Religare has close to 100 men years of experience & covers
a large basket of companies from different categories.

Varied Research Products

Fundamental research
Technical research
Daily reports
Intra-day trading tech calls
Intra-day Derivatives calls
Directional F&O calls
Structured products
Value adds

Access to all accounts through investors unique Customer Relationship Number (CRN)
31

 Access investors ledger balances and account information over internet and at t5he
Branch Help Desk

Browser and application based platform can also be made available for equity trading.

32

Research Methodology
Definition of Research

The word research is derived from the Latin word meaning to know. It is a systematic and a
replicable process which identifies and defines problems, within specified boundaries. It
employs well designed method to collect the data and analyses the results. It disseminates the
findings to contribute to generalizeable knowledge.

The five characteristics of research presented below will be examined in greater detail later
are:

Systematic problem solving which identifies variables and tests relationships between
them.

Logical, so procedures can be duplicated or understood by others.

Empirical, so decisions are based on data collected.

Reductive, so it investigates a small sample which can be generalized to a larger

population.

Replicable, so others may test the findings by repeating it.

33

Now-a-days many companies are offering portfolio management schemes. In these schemes
company give a opportunity to clients to invest their money in bulk. In PMS there is no interfere
of investor in investment. It means he\she does not interfere that in which and in which scripts
his money is investing. There is a team of fund managers in the company which manage the
money of the investor.
It is the decision of Fund manager that in which scripts the money of the investor will be
invested.
Features

Portfolio of 15-18 solid stocks

Focus on stocks with large market capitalization (Rs 1,500 Crores)
Sector concentration limited to 30%
Stock concentration limited to 15%
The top 10 stocks account for up to 75% of the portfolio, giving your portfolio greater
leverage

34

Angel Brokings services in PMS

Angel Broking offers PMS to address varying investment preferences. As a focused service, PMS pays attention to details, and
portfolios are customized to suit the unique requirements of investors.
Angel Broking PMS currently extends five portfolio management schemes, viz Panther, Tortoise, Elephant, Caterpillar and Leo. Each
scheme is designed keeping in mind the varying tastes, objectives and risk tolerance of our investors

Investment Philosophy of Angel Broking in PMS

The company believes that its investors are better served by a disciplined investment approach, which combines an understanding of
the goals and objectives of the investor with a fine tuned strategy backed by research.

Stock specific selection procedure based on fundamental research for making sound investment

Focus on minimizing investment risk by following rigorous valuation disciplines.

Capital preservation.

Selling discipline and use of Derivatives to control volatility.

Overall to enhance absolute return for investors.

decisions.

Schemes of PMS in Angel Broking

Panther
The Panther portfolio aims to achieve higher returns by taking aggressive positions across sectors and market capitalizations. It is
suitable for the High Risk High Return investor with a strategy to invest across sectors and take advantage of various market
conditions.
Tortoise
The Tortoise portfolio aims to achieve growth in the portfolio value over a period of time by way of careful and judicious investment in
fundamentally sound companies having good prospects. The scheme is suitable for the Medium Risk Medium Return investor with a
strategy to invest in companies which have consistency in earnings, growth and financial performance.
Elephant
The Elephant portfolio aims to generate steady returns over a longer period by investing in Securities selected only from BSE 100 and
NSE 100 index. This plan is suitable for the Low Risk Low Return investor with a strategy to invest in blue chip companies, as these
companies have steady performance and reduce liquidity risk in the market.
Caterpillar

35

The Caterpillar portfolio aims to achieve capital appreciation over a long period of time by investing in a diversified portfolio. This
scheme is suitable for investors with a high risk appetite. The investment strategy would be to invest in scripts which are poised to get
a re-rating either because of change in business, potential fancy for a particular sector in the coming years/months, business
diversification leading to a better operating performance, stocks in their early stages of an upturn or for those which are in sectors
currently ignored by the market.

Leo
Leo is aimed at retail customers and structured to provide medium to long-term capital appreciation by investing in stocks across the
market capitalization range. This scheme is a mix of moderate and aggressive investment strategies. Its aim is to have a balanced
portfolio comprising selected investments from both Tortoise and Panther. Exposure to Derivatives is taken within permissible
regulatory limits.

Advantages of investment in PMS

Long term returns
Investing for the long-term in shares is immensely more profitable than investing in any other
instrument.
Diversification
Fund managers consider the degree of diversification that makes sense for a given client (given
its risk preferences) and construct a list of planned holdings accordingly. The list will indicate
what percentage of the fund should be invested in each particular stock or bond.

Investment styles
There are a range of different styles of fund management that the

institution can implement.

For example, growth, value, market neutral, small capitalization, indexed, etc. Each of these
approaches has its distinctive features, adherents and, in any particular financial environment,
distinctive risk characteristics. For example, there is evidence that growth styles (buying rapidly
growing earnings) are especially effective when the companies able to generate such growth
are scarce; conversely, when such growth is plentiful, then there is evidence that value styles
tend to outperform the indices particularly successfully.

36

Performance measurement
Fund performance is the acid test of fund management, and in the institutional context
accurate measurement is a necessity. For that purpose, institutions measure the performance
of each fund (and usually for internal purposes components of each fund) under their
management, and performance is also measured by external firms that specialize in
performance measurement. And accordingly fund managers decide that in which scripts they
should invest and from which scripts they should quit. So that the investor can earn more
profit.
Limitations of investment in PMS
Long term investment
PMS believes in the long term wealth creation potential of equities. The long term returns from
equity investments have far exceeded returns from debt investments. However the investment
experience of many investors from equity investments is very bad.
High risk
Because the investor has to invest his\her money in bulk hence he\she is in high risk because
profits and losses in stock is more or less depends on market conditions.

The main pitfalls which result in investors facing principal loss and poor returns are
a) Investing at times of excessive optimism and market frenzy and avoiding investments when
valuations are most attractive.
b) A lot of churn (turnover) resulting in high impact cost, transaction costs and taxes.
c) Incorrect selection of stocks.

37

DURATION OF THE PORJECT

Religare Broking Ltd. provided FifteenDays Project Study at Jaipur Office.
Duration period is 15 days.

38

Objectives of the study:

Objective of this study is to find out Angel Broking Ltd. for, Demat account, Equity
market, and Derivative market. Project is sub-divided into the following objectives:
To find the competition of equity market especially in NSE trading and bring out the
awareness level of the investors who are trading with National Stock Exchange.
To find the advantages of the Demat account and charges by various depository
participants.
To study the trading procedure of Angel Broking Ltd. and comparison of the broking
firms.
To find the cost saving analysis on the brokerage charges by the Angel Broking Ltd. on
the share and derivative trading with the other broking firms.
Positioning of Angel Broking Ltd. in Kota.
Suggestions and perceptions about Angel Broking Ltd.

39

TYPE OF RESEARCH

Identification of problem-: What is the individuals Investment strategy in equities and other
investment options?

Data collection -:

Primary data -: By survey of individuals

Sample size -: 100 people

People surveyed -: investors of equity market and others

Group 1-: Businessmen

Sample size -: 25 people

Income slab -: 500000 to 5000000 per annum

Age group -: 25 to 45 years

Educational background -: Higher secondary to post graduation including

professional courses.

Group 2 -: Government employees

Sample size -: 25 people

Income slab -: 250000 to 500000 per annum

Age group -: 35 to 55 years

Educational background -: graduates & post graduates

Group 3 -: Private employees

Sample size -: 25 people

Income slab -: 180000 to 700000

Age group -: 22 to 35 years

Educational background -: graduates and post graduates including professional

courses
40

Group 4 -: Retired personals

Sample size -: 25 people

Income slab -: 500000 to 1000000 per annum

Age group -: 60 to 75 years

Educational background -: graduates and post graduates

Survey pattern -:I have surveyed through personal interview and telephonic interview.

Secondary data -: I have collected secondary from website.

SAMPLE SIZE & METHOD OF SELECTING SAMPLE

Sample size
BROKERS AND SUB BROKERS IN KOTA
Share brokers and sub-brokers (including on-line line & off-line brokers)
On-line broking firms: Kotakstreet.com, 5Paisa.com, ICICI Direct.com, Sharekhan.
Off-line broking firms: Anand Rathi, H.C.Jain & Co., Hem Securities, Eureka Securities, Alankit
Assignments and others.

41

42

THE
MILESTONE

200
4
200
3
200
2
200
1
199
9

200
5
100+ Branches &
200
200+ Franchise
4
Locations
200
Mutual fund
4
distribution
BSE Membership &
Commodities

Portfolio
Management Service

Corporate
Finance

Retail
Operations

Institutional
Business

Custodial
Service

Growth Strategy

The major revenue drivers for the company are its retail equity broking arm Religare
Securities and Religare Finvest, which finances loans against shares. The two
accounted for more than 90% of the Religare consolidated revenues in FY07.

The company aims to utilise the proceeds of the issue to further expand its
geographical presence both in the domestic and international markets that include
43

West Asia and Western Europe. It also plans to use the issue proceeds to significantly
enhance its online trading capabilities.

Its wealth advisory arm Religare Wealth Management Services recently entered
into a 50:50 joint venture with the Australian based Macquarie Bankto offer wealth
management services. If the venture clicks, given the rising income and wealth of
Indias upper middle class, it may turn out to be a major growth driver for the
company.

FINANCIAL GROWTH
Revenue
Starting from a small base, the company has shown rapid topline and bottomline growth in the
past few years. During FY07, the companys net profit more than doubled to Rs 25 crore
against Rs 11 crore during FY06.
Net profit during April-September 07 grew to Rs 36 crore while revenues jumped to Rs 308
crore.

Sales
Net sales during the period jumped 10 times to Rs 320 crore from Rs 31 crore.
Rising Equity Broking Turnover

Over 190,000 Retail Equity clients, with growth rates over 200%

Current market share is at 4.5% - 5.5%

Target increased presence in this segment both in India and abroad

Doubling manpower by March 2008

44

Fig in $ mn

Equity broking turnove

Rising client base

Presence of 300 Branches all India

Internationally, established office in London, with the target of opening offices abroad by
March 2008

Targeting growth of 25% in brokerage by March 2008

Rising online clients

Official Launch of E-broking in August 2006

Aggressive growth has been observed in the client base for online trading
45

Targeting 300,000 online clients by the end of this financial year

Unique features of online investment

Trades Rewards

Trade Rewards is a unique offering from Religare that gives to investor dual benefits of hassle
free investment experience online and an opportunity to earn while he\she invest with it.

Zero Brokerage

Break the shackles. Get freedom from brokerage and avail zero brokerage on investors
trades through us.

Exposure up to 20 times on investors margin

Allowing to investor the freedom to trade without hassles throughout the day without having to
worry about his\her cash margin. The investor can get exposure (on cash segment) as high as
20 times for intraday trades.

Religares Growth through tie ups with other companies

AEGON Religare currently offers Life Insurance plans that keep invester and his\her family
financially secure so he\she can meet all his\her financial goals.
46

AEGON, one of the worlds largest life insurance and pension groups and Religare, one of the
leading integrated financial services groups in India, have come together to launch AEGON
Religare Life Insurance Company Limited. This venture is dedicated to build a firm future,
both for customers and employees and will continue to balance a local approach with the
power of expanding global operations.

Religare Enterprises Limited and Macquarie Bank Limited announced on18th October 2007
that they have signed a Joint Venture Agreement (JV) to expand Religares wealth
management business. Under the JV, Macquarie would become a 50 per cent shareholder of
Religare Wealth Management Services Limited, a subsidiary of Religare Enterprises Limited.
The business is expected to be renamed Religare Macquarie Wealth Limited.
The two companies have entered into the JV with the mutual aim of building advisory based
wealth management solutions to the fast growing number of high net-worth investors in India.

47

Religare Enterprises Limited and Vistaar Entertainment Ventures Private Limited launched
Indias first ever film fund - Vistaar Religare Film Fund (VRFF) for the Film

Religare AEGON AMC - 50:50 Joint Venture between REL

And Aegon for Asset Management business in India.

Religare aquires 97.76% stake in hichens

Domestic brokerage firm Religare Capital Markets on Tuesday said it has acquired 97.76 per
cent stake in Hichens Harrison & Co Plc following the acceptance of its open cash offer by the
UK firm.
Hichens has accepted the offer for 1,70,06,441 shares, representing 97.76 per cent stake in
the UK firm, Religare said in a fling to the Bombay Stock Exchange.
Religare Capital Markets, the wholly-owned subsidiary of Religare Enterprises Ltd (REL), had
in April announced its decision to make an open offer to UK-based broking firm Hichens
Harrison.
REL, the holding company for financial services businesses of the group, had offered 285
pence per share cash and valued Hichens Harrison at around 55.5 million pound.
Post acquisition, Religare is planning to delist Hichens from the London Stock Exchange's
Alternative Investment Market (AIM), the filling said.
The cancellation of the admission of Hichens shares to the AIM Market would significantly
reduce the liquidity and marketability of the remaining shares in the company, it said.
48

Further, Religare Capital Markets International UK, an indirect wholly-owned subsidiary of

Religare Capital Markets, intends to re-register the firm as a private company, it added.
Last week Religare had received approval from the UK regulatory body Financial Services
Authority (FSA) for completing the acquisition of Hichens Harrison & Co Plc.
Shares of Religare were trading at Rs 396, up 0.97 per cent in the afternoon trade on the BSE

A short story on Religare Securities services

Religare Securities Limited is one of Indias leading equities and
Securities firms and offers services spanning equity broking,
Depository participant, portfolio management, institutional brokerage
And research, investment banking and corporate finance. With
50,000 of Religares 600,000-strong client base conducting trades
on a daily basis, the organization employs 150 staff to ensure the
IT infrastructure underpinning the business can support demand.
The infrastructure operates across a production datacenter in New
Delhi, another center in Mumbai and servers housed in co-located
Data centers run by third parties.
Our production datacenter currently hosts about 300 servers with the

49

Majority catering to trading requirements, said Saurabh Srivastava,

HeadInfrastructure (IT), Religare Securities. We have huge traffic at
Any given time.
With demand surging and plans to expand to 500 branches across
India, Religare turned to VMware virtualization to deliver horizontal
Scalability. Right now, we have 250 servers and we are running a
Further 35 as virtual machine hosts to support forecast load increases,
Srivastava said. We are running about 150 virtual machines at up to
12 per physical host depending on the hardware specifications.
Religare Securities is currently implementing blade chassis housing
Up to four servers each in its datacenters to increase utilization of
Rack space and ease datacenter real estate, power and cooling loads.
The virtualized environment spans up to 60 machines allocated to
User acceptance testing as well as multiple virtual machines hosting
Application and Web servers.
We are running business-critical trading applications in our virtualized
Environment with no problems at all, Srivastava said. There has been
No performance degradation despite intense application usage.

50

Results
Achieved a server consolidation ratio of up to 12:1
Increased average CPU utilization from 25-30% to 60-70%
Saved almost Rs.10 million (US$231,965) in server hardware
Acquisition costs
Cut power consumption by 10-20%
Improved application availability and reduced downtime
Provided a platform to establish a DR site by the end of 2008ation usage.

51

52

INVESTMENT OPTIONS: - There are many investment options which are as follows:-

Equities

Derivatives (F&O)

Insurance

Fixed Deposit (FD)

Fixed maturity plan (FMP)

Mutual fund (MF)

Commodities

Exchange traded finance (ETF)

Debentures & Bonds

Mutual fund

Equities

Fixed
maturity plan

Debentures
& bonds

Derivates

Exchange
traded
fund

Insurance

Fixed
Deposits

Commoditie
s

53

Equity:- a best option for investment

In equity the investors can invest their money in two ways:-

Online investment
On net or through
software

Offline Investment
Through phone

Offline investment: - In this type of investment the investor can invest his\her money or we can
say he\she can deal on phone. It means the investor can contact with dealer through
phone and can instruct the dealer for dealing.
Online investment: - in this type of investment the investor does dealing on his own. In online
dealing he\she can use browser based facility or may choose software.

Clearing & Settlement (Equities)

NSCCL carries out clearing and settlement functions as per the settlement cycles of different
sub-segments

in

the

Equities

segment.

The clearing function of the clearing corporation is designed to work out a) what counter
parties owe and b) what counter parties are due to receive on the settlement date. Settlement
is a two way process which involves legal transfer of title to funds and securities or other
assets

on

the

settlement

date.

NSCCL has also devised mechanism to handle various exceptional situations like security
shortages, bad delivery, company objections, auction settlement etc .
54

TRADING PROCEDURE:
Now the question arises how the trading takes place
Types of Order
Order Entry & Unique code
Unique order number
Time stamping of Orders
Trade Number
Posted to Back office of the Broker/Sub-broker
Issue of Contract Note/Sale Purchase Note
1)
Execution of Orders
Orders got executed on finding the right match.
Matching priority:
Best buy order with highest price
Best sell order with lowest price
*The unmatched orders are queued in the system by
Price-time priority basis.
2)
Flow of Trading
3)
How trades are settled?
Trades are settled on a T+2 basis
Netting of trades
Securities Pay-in
Funds Pay-in
Securities Pay-out
Funds Pay-out
Auction for Shortages
4)
Settlement Calendar
Activity Day
Trading T
Funds Pay-in T+2
Securities Pay-in T+2
5)
Funds Pay-out T+2
Securities Pay-out T+2
Auction for Shortage T+3
Auction Pay-in/Pay-out T+5
55

6)
Formalities Before Trading
Identify Broker/Sub-Broker
Client Registration
Client Agreement
Risk Disclosure document
Allotment of Unique Client Code
Margin Payment
D-mat Account
7)
Brokerage charges & Taxes
Maximum brokerage: 2.5% (Main broker: 1% + Sub-broker : 1.5%)
Securities Transaction Tax (STT)
> Delivery based transactions : .125%
> Non-deliveries (squared off trans) : .025%
> Derivative transact

Products which are provided by Religare in equity: Religare securities deal in equities. There are mainly two types of trading services which are
provided by Religare securities offline and online.

( 1 ) R AL LY ( O F F L I N E P R O D U C T \ S E RVI C E ) -

In this product/service, Company offers a D-MAT and TRADING Account to its customers.
They can trade through Phone or physical presence at office campus. The

company provides all facilities in office campus. There is a trading hall where all dealers
buy/sell the share according to orders of clients. Thus, the company provides this service to
customer with the charge of Rs. 500/- only. After opening account they can buy/sell shares
56

through company. The all work done by dealer in this service, he\she will buy/sell share on the
behalf of client through his\her client code

(2) BANDHAN (OFFLINE PRODUCT\SERVICE)

In this service all facilities are provided as in the rally but the client have to pay Rs. 2000
instead of Rs 500 at the time of account opening as security money. The main benefit in this
scheme is that the client will not have to pay Rs. 250 as account malignance annually. This
security money is refundable if the client wants to close his\her account in future.

( 2 ) R A L LY L I T E ( O N L I N E

SERVTCE BROWSER BASED)

In this product/service, company offers the all service online through WebPages. It is a webbased service. Customers can sell/buy shares through net. In this service there is no need to
call to dealer or physical presence of client. They can do own. This facility is free, the account
opening charge is Rs. 500/-, but in this product customer have to pay minimum Rs. 5000/- only
For using this service. This is not security money. It is usable money for any buying shares. A
client can use this money in trading

57

3 ) R A L LY P R O ( O N L I N E S E R V I C E S O F T W A R E B A S E D )
In this product/service, company offers software Odin Diet. Customers can sell/buy shares
from this software. There is no need to call or physical presence for trading. This software is
downloaded to clients Pc. He can use it at own computer or own place. This software is also
free, but there is a brokerage commitment in these service charges. If client cross the
58

brokerage limit across the Rs. 1800/- only then this is refundable money for client. It is credited
to clients account. Means the brokerage is adjusted against this amount.

59

Accept all above products there are two prepaid plans in Religare securities ltd

. RALLY DHAMAKA PLUS

RALLY DHAMAKA GRAND

R A L LY D H A M A K A P L U S : In this plan the client has to pay rs. 500 for account opening and rs.15000 as advance
brokerage. But this amount of 15000 is refundable to the client within one year if he generates
the brokerage of rs 15000.

RALLY DHAMAKA GRAND: This plan is same as rally dhamaka plus but in this plan the client has to pay Rs. 50000 instead
of Rs. 15000 as advance brokerage. The rest procedure remains sa.

RALLY
RS.
500

BANDHAN
RS. 2000
RALLY
LITE
RS
500+5000

RALLY
PRO
RS.
500+1800

RALLY
DHAMAKA
PLUS
RS 500+15000
RALLY
DHAMAKA
GRAND
RS
500+50000

60

61

Mutual Fund
Concept
A Mutual Fund is a trust that pools the savings of a number of investors who share a common
financial goal.
The money thus collected is then invested in capital market instruments such as shares,
debentures and other securities.
The income earned through these investments and the capital appreciation realized is shared
by its unit holders in proportion to the number of units owned by them.
Thus a Mutual Fund is the most suitable investment for the common man as it offers an
opportunity to invest in a diversified, professionally managed basket of securities at a relatively
low cost.

62

Asset Management Company

An AMC is a legal entity formed by the sponsor to run a mutual fund.
It is the AMC that employs fund managers and analysts and other personnel.
It is the AMC that handles all operational matters of a mutual fund from launching schemes
to managing them to interacting with the investors.
The people in the AMC who should matter the most to the investors are those who take
investment decisions

Basis principles of Mutual Fund

Types of scheme in which are offered in Mutual Fund: - there are two types of schemes in
mutual fund
Open ended]
Close ended

Close ended
Entry at the
time of
launch than
selling of
units

Open
ended
Any time
Entry\exit

63

Open ended scheme

Open-ended schemes, as their name suggests, dont have a fixed tenure and are always open
for investment. One can invest in them any time and also withdraw at any time. This ease of
entry and exit makes it a popular choice among both mutual funds and investors.

Close ended scheme

Closed-end schemes, on the other hand, are of fixed tenure, which is stated at the time of their
birth itself. Such schemes invite subscriptions only once during their lifetime, at the time of
launch. Further the investor can sell his\her units in the market. Most closed ended schemes
are listed on the stock exchanges.

NET ASSEST VALUE (NAV)

Units are allotted to the investors on the basis of the scientific pricing mechanism.
This price, measure per unit, is called the net asset value (NAV) of the unit.
Just as a share or a bond is bought at a price, the unit is bought and sold at NAV.

LOAD
Although the NAV represents a schemes current market value, it is not the exact price at
which the investor enters or exits the scheme. Fund houses levy a nominal charge, on most of
their schemes to meet their processing costs and to discourage investors from leaving .
This charge is referred to as Load and it is the price one pays over and above the funds
NAV when you buy or sell units.

Two types of load are charged on mutual funds

64

 Entry load
Exit load
One pays entry load at the time of buying and exit load at the time of selling.
Loads are always expressed as a percentage of the NAV, which places fewer units in your
hands.

EXPENSES
Another entry that eats into the investors returns is expenses. This is what the fund charges
the investor for managing his money. Fund managers have to be paid a fee, as do the other
constituents managing your money. All this entails costs which the scheme recovers from the
investor within limits.
SEBI rules allow equity schemes to charge a maximum of 2.5% of corpus as expenses
every year.

Types of Mutual Fund

Mutual are mainly divided in to three parts
Equity Mutual Fund
Balance Mutual Fund
Growth Mutual Fund

EQUITY MUTUAL FUND

Equity mutual funds are also known as stock mutual funds.

65

Equity mutual funds invest pooled amounts of money in the stocks of public companies. Stocks
represent part ownership, or equity, in companies, and the aim of stock ownership is to see the
value of the companies increase over time. Stocks are often categorized by their market
capitalization (or caps), and can be classified in three basic sizes: small, medium, and large .

Balance Mutual Fund

Balanced fund is also known as Hybrid Fund.
It is a type of mutual fund that buys a combination of common stock, preferred stock, bonds,
and short-term bonds, to provide both income and capital appreciation while avoiding
excessive risk.
Balanced funds provide investor with an option of single mutual fund that combines both
growth and income objectives, by investing in both stocks (for growth) and bonds (for income).

Growth Fund
Growth funds are those mutual funds that aim to achieve capital appreciation by investing in
growth stocks.
They focus on those companies, which are experiencing significant earnings or revenue
growth, rather than companies that pay out dividends.
Growth funds tend to look for the fastest-growing companies in the market

Advantages of mutual fund

Mutual Funds provide the services of experienced and skilled professionals, backed by a dedicated
investment research team that analyses the performance and prospects of companies and selects
suitable investments to achieve the objectives of the scheme.

1. Convenient Administration
2. Return Potential
66

3. Low Costs
4. Diversification
5. Affordability
6. Flexibility
7. Choice of Schemes
8. Well Regulated
9. Transparency
10. Liquidity

Limitations in Mutual Fund

1. No Guarantees:
2. Fees and commissions:
3. Taxes:
4. Management risk

67

COMMODITIES
Commodities are also a good investment option for investors. There are so many options in
commodities for investment which are as follows.

Metal
Base metal

Nickel

Copper

Platinum

Zinc

Steel

Aluminum

Precious metal

Gold

silver

energy
natural gas
crude oil
Agr

Coriander

Jeera

68

Chana

Guar

Pepper

Chili

Rubber

Sugar

Gur

Potatoes

Refined Soyabean

69

In commodities trading takes place only in futures. It means dealing is possible only on
delivery basis. Intra-day trading is not possible because there are contracts of three months
on every commodity. Brokerage is charged on intra-day basis. One basic concept of
commodity trading is that there is no D-MAT account in commodity trading. There is only
trading account because commodities are purchased and sell in physical form not in
electronic form and D-MAT is dematerialization of shares from physical form into electronic
form.
Religares services in commodity trading
Religare commodities limited (RCL) provides the services of dealing in commodity market.
Religare Commodities Limited (RCL), an effort of the Religare Group was initiated to
spearhead Exchange based Commodity Trading. RCL is not only a trade
facilitator but also caters to the unique needs of exchange based commodity trading with its -

Highly process driven, diligent approach

70

Powerful Research & Analytics

One of the "best in class" dealing rooms

As stated above brokerage is charged on intra-day basis in commodity trading in RCL brokerage
Plans
Brokerage
Only trading account

.02 paisa

Rally dhamaka plus

.015 paisa

Rally dhamaka grand

.01 paisa

sheet is as follows:-

71

Advantages of trading in commodities

Big market diverse opportunities
Because the listed commodities include Bullion, Metals, Energy

and Agri products,

trading in commodities provides a lucrative market opportunity for investors.

Huge potential

Commodity exchanges witness a sizeable daily turnover, unlocking a huge potential for the
participants to earn profit.

Exploitable fundamentals

Commodity trading operates on the simple principle that price is a function of demand and
supply. This makes thing really easy to understand and exploit.

Extended trading hours

Indian commodity market operates for 14 hours a day covering timing of all major international
commodity exchanges, thus giving traders ample time to earn profit.

72

Portfolio management services ( PMS)

Now-a-days many companies are offering portfolio management schemes. In these schemes
company give a opportunity to clients to invest their money in bulk. In PMS there is no interfere
of investor in investment. It means he\she does not interfere that in which and in which scripts
his money is investing. There is a team of fund managers in the company which manage the
money of the investor.
It is the decision of Fund manager that in which scripts the money of the investor will be
invested.

Features
Portfolio of 15-18 solid stocks
Focus on stocks with large market capitalization (Rs 1,500 Crores)
Sector concentration limited to 30%
Stock concentration limited to 15%
The top 10 stocks account for up to 75% of the portfolio, giving your portfolio greater
leverage

73

Religares services in PMS

Religare offers PMS to address varying investment preferences. As a focused service, PMS pays
attention to details, and portfolios are customized to suit the unique requirements of investors.
Religare PMS currently extends five portfolio management schemes, viz Panther, Tortoise,
Elephant, Caterpillar and Leo. Each scheme is designed keeping in mind the varying tastes,
objectives and risk tolerance of our investors

Investment Philosophy of Religare in PMS

The company believes that its investors are better served by a disciplined investment
approach, which combines an understanding of the goals and objectives of the investor with a
fine tuned strategy backed by research.

Stock specific selection procedure based on fundamental research for making sound

investment decisions.

Focus on minimizing investment risk by following rigorous valuation disciplines.

Capital preservation.

Selling discipline and use of Derivatives to control volatility.

Overall to enhance absolute return for investors.

74

Schemes of PMS in Religare

Panther
The Panther portfolio aims to achieve higher returns by taking aggressive positions across
sectors and market capitalizations. It is suitable for the High Risk High Return investor with a
strategy to invest across sectors and take advantage of various market conditions .

Tortoise
The Tortoise portfolio aims to achieve growth in the portfolio value over a period of time by way
of careful and judicious investment in fundamentally sound companies having good prospects.
The scheme is suitable for the Medium Risk Medium Return investor with a strategy to invest
in companies which have consistency in earnings, growth and financial performance.

Elephant
The Elephant portfolio aims to generate steady returns over a longer period by investing in
Securities selected only from BSE 100 and NSE 100 index. This plan is suitable for the Low
Risk Low Return investor with a strategy to invest in blue chip companies, as these
companies have steady performance and reduce liquidity risk in the market.

Caterpillar
The Caterpillar portfolio aims to achieve capital appreciation over a long period of time by
investing in a diversified portfolio. This scheme is suitable for investors with a high risk
appetite. The investment strategy would be to invest in scripts which are poised to get a rerating either because of change in business, potential fancy for a particular sector in the
coming years/months, business diversification leading to a better operating performance,
75

stocks in their early stages of an upturn or for those which are in sectors currently ignored by
the market.

Leo
Leo is aimed at retail customers and structured to provide medium to long-term capital
appreciation by investing in stocks across the market capitalization range. This scheme is a
mix of moderate and aggressive investment strategies. Its aim is to have a balanced portfolio
comprising selected investments from both Tortoise and Panther. Exposure to Derivatives is
taken within permissible regulatory limits.

Advantages of investment in PMS

Long term returns
Investing for the long-term in shares is immensely more profitable than investing in any other
instrument.

Diversification
Fund managers consider the degree of diversification that makes sense for a given client
(given its risk preferences) and construct a list of planned holdings accordingly. The list will
indicate what percentage of the fund should be invested in each particular stock or bond.

Investment styles
There are a range of different styles of fund management that the

institution can implement.

For example, growth, value, market neutral, small capitalization, indexed, etc. Each of these
approaches has its distinctive features, adherents and, in any particular financial environment,
distinctive risk characteristics. For example, there is evidence that growth styles (buying rapidly
growing earnings) are especially effective when the companies able to generate such growth
are scarce; conversely, when such growth is plentiful, then there is evidence that value styles
tend to outperform the indices particularly successfully.
76

Performance measurement
Fund performance is the acid test of fund management, and in the institutional context
accurate measurement is a necessity. For that purpose, institutions measure the performance
of each fund (and usually for internal purposes components of each fund) under their
management, and performance is also measured by external firms that specialize in
performance measurement. And accordingly fund managers decide that in which scripts they
should invest and from which scripts they should quit. So that the investor can earn more
profit.

Limitations of investment in PMS

Long term investment
PMS believes in the long term wealth creation potential of equities. The long term returns from
equity investments have far exceeded returns from debt investments. However the investment
experience of many investors from equity investments is very bad.

High risk
Because the investor has to invest his\her money in bulk hence he\she is in high risk because
profits and losses in stock is more or less depends on market conditions.

The main pitfalls which result in investors facing principal loss and poor returns are
a) Investing at times of excessive optimism and market frenzy and avoiding investments when
valuations are most attractive.
b) A lot of churn (turnover) resulting in high impact cost, transaction costs and taxes.
c) Incorrect selection of stoc

Fixed deposit

77

A good investment strategy requires choosing the right mix of safe and risky investments.
Among safe investments, fixed deposits, FDs, are the most popular today.
With FDs you deposit a lump sum of money for a fixed period ranging from a few weeks to a
few years and earn a pre-determined rate of interest. FDs are offered by both banks and
companies though putting your money with the latter is generally considered riskier.
Interest rates on FDs
The rate of interest on FDs varies according to the maturity with longer deposits generally
earning a higher interest rate. Interest rates on FDs vary quite a bit from bank to bank so you
should search around before investing.
Interest paid on a fixed deposit is paid either monthly or quarterly according to the investor's
choice. So if you invest Rs 3 lacs there and in a one year fixed deposit which pays 8 per cent
you can earn Rs 2,000 of interest every month or Rs 6,000 of interest every quarter.

Effective Return
Before you invest in FDs you need to understand the concept of effective return which is
higher than the rate of interest on the FD. Effective return is relevant if you choose to reinvest
your interest every year which means that you will be earning compound interest
For example suppose you invest Rs 1,000 in a fixed deposit with 8 per cent interest which is
paid quarterly.
In the first quarter (after 3 months) you will earn an interest of Rs 20 which is re-invested and
continues to earn interest in the remaining three quarters. Similarly the interest you earn in the
second (after 6 months) and third quarter (after 9 months) is also reinvested and earns
interest.
At the end of the year because of compound interest you will receive Rs 1,082.4 meaning that
your effective return is 8.24 per cent rather than 8 per cent .

If anyone wants to withdraw from FD

78

Breaking a fixed deposit means withdrawing the money before the maturity expires. This may
be necessary if you urgently require the funds or if there are better investment opportunities
elsewhere. You will have to pay a cost; for instance you may receive an interest rate 1 per cent
lower than the stated interest rate on the FD.
For example if you invested in a 3 year FD with 9 per cent and you break it after two years you
may receive only 8 per cent interest for those two year instead of 9 per cent.
An alternative to breaking a fixed deposit is taking a loan against the FD. Such loans are quite
easy to obtain with amounts ranging up to 90 per cent of the principal and accumulated
interest.

Advantages of investment in Fixed Deposits

Safe investment
The main advantage is that FDs from reputed banks are a very safe investment because such
banks are carefully regulated by the Reserve Bank of India RBI, the banking regulator in India.

Regular income
The other advantage of FDs is that you have the option of receiving regular income through
the interest payments that are made every month or quarter. This option is especially useful for
retirees

Limitations of Fixed Deposits

Less returns than stock market
A fixed deposit won't give you the same returns that you may get in the stock markets. For
instance a stock-portfolio may rise 20-30 per cent in a good year whereas a fixed deposit
typically earns only 7-10 per cent

Impact of inflation on returns

79

A fixed deposit also doesn't offer protection against inflation. If inflation rises steeply during the
maturity of the FD your inflation adjusted return will fall.
Say, for example, the inflation when you deposited the money at a fixed return of 8 per cent
per annum is 3 per cent. Now when your FD matures say after 2 years, the inflation increases
to say 5 per cent.

Fixed maturity plan (FMP)

Fixed maturity plan is a good investment option for those investors who want to invest in just
like fixed deposits plans because these plans are more or less same as FDs. They have a
fixed maturity period just like FDs.
Mutual funds offer Fixed Maturity Plans. Two features make them distinct from other fund
schemes:

1. Tenure
FMPs have a fixed maturity date. It could be 15 days, 30, 90, 141, 180 or even 365 days.
Some even have a three or five-year time frame.
Recently, Birla launched such a plan for 18 months and 36 months.
At the end of this period, the scheme matures, just a like a fixed deposit.

2. Investments
80

FMPs invest in fixed income instruments, like bonds, government securities, money market
instruments (very short-term fixed return investments), to name a few.

How long is the money blocked?

Before the scheme opens, the tenure is made known. You must pick a tenure most suited for
you.
Note: FMPs are either open ended (more the exception) or close ended (more the norm).
Open ended funds allow you to enter (buy units) and exit (sell units) any time you want.
Close ended means they remain open for subscription only for a short period of time. They
then close and do not accept any fresh deposits. They also do not allow current investors to
withdraw. So your money is locked in during that time frame.
If you need the money urgently, you can sell your units. But you will have to pay an exit load
(the fee when you sell the units of a fund).
Close ended schemes charge a load between 1% and 2% of the Net Asset Value (price of a
unit of a fund) at the time of withdrawal. This is referred to as an exit load and is levied when
an investor wants to sell his/her units.
The reason for this steep load is to dissuade investors from exiting before the fund matures. Of
course, if you hold on till maturity, you will not have to pay an exit load.

How do they differ from income funds?

An income fund will invest in the same instruments like an FMP. But an open ended income
fund will not have a fixed tenure.

81

Because the tenure of the scheme is fixed, it makes investing easier for the fund manager. He
can invest in instruments that will mature around the same time the scheme matures, in one
go.
So a fund manager with an FMP of a five-year maturity, for instance, will invest only in
instruments that have a five-year maturity. Similarly, a one-year FMP will invest in one-year
maturity investments.
Because of this, he can even give an indicative return (though he cannot assure one) unlike an
income fund.

How do they differ from fixed deposits?

The similarity first: both have fixed tenures.
The difference: a fixed deposit gives assured returns. You know what you are getting and
when.
An FMP will give an indicative, but not assured, return.
You will be expected to invest a minimum of Rs 5,000 in an FMP. Not so in the case of a bank
deposit, this can be less.

What is the tax impact?

If you invest in an FMP, the dividend is tax-free in the hands of the individual investor.
If you invest in the growth option of the FMP for less than a year, the gains are added to the
investor's income and taxed at the investor's slab rate.
If you invest in the growth option of the FMP for over a year, you pay either 10% capital gains
tax without indexation or 20% with indexation.
Indexation is the process by which the inflation is taken into account when computing the tax
liability. To understand indexation, read All about capital gain.
82

What are the returns investor can expect?

The mutual fund will have to pay a dividend declaration tax of 14.5%. After deducting that,
returns in the hands of the investor can be higher than a bank deposit.
Let's assume an FMP gives a return of 5.50% for a one-year plan. Against that compare a oneyear bank fixed deposit. Sure. If you do not like to take any risks with your savings and
your diet consists of fixed return investments, this is one option to consider.
Or if you have some money that you would like to put away for a very short period of time, this
is an option for you.
But read the investment objectives of the scheme carefully before you invest. A fund with a
long-term horizon like a few years may have a provision to invest a small portion in equity.
For instance, Franklin Templeton had launched a 60-month plan where a cap of 30% of the
investments could go into equity. So make sure you know what you are investing in.

Advantages of investment in FMPs

It is suitable for those investors who want to invest their money for very short period or
we can say it is short term investment.

There is risk factor is very low because of short term investment.

Disadvantages of investment in FMPs

There is not assured return in FMPs like FDs

83

In such plans the should be aware because if he\she is choosing long term validity than
there is risk factor because in long term plan some amount of the investment can go in
to equity

INSURANCE
84

You cant do anything about the

Length of your life,
But you can do
Something for its width and depth.
Insurance is a planning of risk covering by individuals. There are many risks in life or we can
say that a lot of accidents are waiting for us. Hence for covering these risks individuals prefer
insurance plans for investment.
Insurance is based on the concept of risk pooling or risk
sharing of losses. Basically under this concept, all individuals suffering a similar risk, place an
agreed sum into a pool and the monies collected are used to indemnify any contributing
individual against any loss.
Terms which are used in an insurance policy
Premium the minimum amount which the client want to give according to the terms and
conditions of the insurance company.
Sum assured it is the risk cover. The amount of sum assured depends upon the insured or
the owner of the insurance policy that how much timer of sum assured he\she wants to take.
Allocation and mortality charges these are the charges wh the insurance companies charge.

Policies of insurance
Endowment policy
Term policy

85

 Money back policy

ULIP plan

Endowment policy
Endowment policy is good for young people as it provides them an opportunity not only to
cover themselves for risk but also provides financial independence to them in old age by way
of maturity benefit.

Money back policy

Money back policy on the other hand is ideal for married people and those who have shortterm financial requirements. The periodic returns in case of money back policy can be used for
providing for childrens education, marriage, buying goodies etc.

Term insurance policy

Term insurance or pure risk cover is very cheap and as such helps us to insure ourselves for
larger amounts for lower premium. This policy is ideal for old people and those who cant go for
an endowment plan because of the prohibitive premium level at that age. It helps the
policyholder to be covered for larger amounts.

Unit linked insurance plan (ULIP)

Unit linked insurance plan (ULIP) is life insurance solution that provides for the benefits of
protection and flexibility in investment. The investment is denoted as units and is represented
by the value that it has attained called as Net Asset Value (NAV). The policy value at any time
varies according to the value of the underlying assets at the time.

86

ULIP provides multiple benefits to the consumer. The benefits include:

Life protection

Investment and Savings

Flexibility

Adjustable Life Cover

Investment Options

Transparency

Options to take additional cover against

Death due to accident

Disability

Critical Illness

Surgeries

Liquidity

Tax planning

Types of insurance
Health insurance
Life insurance
Property insurance
Disability insurance
Casualty insurance
Credit insurance
Liability insurance

CREDIT
INSURANCE

PROPERTY
INSURANCE
87

LIFE
INSURANCE

DISABILITY
INSURANCE

LIABILITY
INSURANCE

CASUALITY
INSURANCE

HAELTH
INSURANCR
E

Life insurance
Life insurance is a contract between the policy owner and the insurer, where the insurer

88

agrees to pay a sum of money upon the occurrence of the insured individual's or individuals'
death or other event, such as terminal illness or critical illness. In return, the policy owner
agrees to pay a stipulated amount called a premium at regular intervals or in lump sums.
As with most insurance policies, life insurance is a contract between the insurer and the policy
owner whereby a benefit is paid to the designated beneficiaries if an insured event occurs
which is covered by the policy. To be a life policy the insured event must be based upon the
lives of the people named in the policy
There are three parties involved in a life insurance transaction:
The insurer The insured
Owner of the policy
Beneficiary of the policy

Health insurance
The term health insurance is generally used to describe a form of insurance that pays for
medical expenses. It is sometimes used more broadly to include insurance covering disability
or long-term nursing or custodial care needs. It may be provided through a governmentsponsored social insurance program, or from private insurance companies. It may be
purchased on a group basis (e.g., by a firm to cover its employees) or purchased by individual
consumers. In each case, the covered groups or individuals pay premiums or taxes to help
protect themselves from high or unexpected healthcare expenses. Similar benefits paying for
medical expenses may also be provided through social welfare programs funded by the
governmen

Property insurance
Property insurance provides protection against most risks to property, such as fire, theft and
some weather damage.
Specialized forms of insurance which includes property insurance are as follows:-

Fire insurance
Flood insurance
Earthquake insurance
Home insurance
89

Property is insured in two main ways

Open perils

Named perils

Open perils cover all the causes of loss not specifically excluded in the policy. Common
exclusions on open peril policies include damage resulting from earthquakes, floods, nuclear
incidents, acts of terrorism and war.
Named perils require the actual cause of loss to be listed in the policy for insurance to be
provided. The more common named perils include such damage-causing events as fire,
lightning, explosion and theft

Credit insurance
Credit Insurance is of two types

Credit life insurance

Trade credit insurance

Credit Life Insurance is a consumer purchase, often sold with a big ticket purchase such as an
automobile. The insurance will pay off the loan balance in the event of the death or the
disability of the borrower. Although purchased by the consumer/borrower, the benefit payment
goes to the company financing the purchase to satisfy a debt.
Trade Credit Insurance is an insurance policy and risk management product that covers the
payment risk resulting from the delivery of goods or services. Credit insurance usually covers a
portfolio of buyers and pays an agreed percentage of an invoice or receivable that remains
unpaid as a result of protracted default, insolvency or bankruptcy. Trade credit insurance is
purchased by business entities to insure their accounts receivable from loss due to the
insolvency of the debtors. This product is not available to private individuals.

90

The costs (called a "premium") for this are usually charged monthly, and are calculated as a
percentage of sales of that month or as a percentage of all outstanding receivables.
Credit insurance insures the payment risk of companies, not of private individuals. Policy holders
require a credit limit on each of their buyers for the sales to that buyer to be insured. The
premium rate is usually low and reflects the average credit risk of the insured portfolio of
buyers.
In addition, credit insurance can also cover single transactions or trade with only one buyer.

Liability insurance
Where long trials are held to determine either fault or the amount of damages. Liability
insurance is a part of the general insurance system of risk financing. Originally, individuals or
companies that faced a common peril formed a group and created a self-help fund out of which
to pay compensation should any member incur loss. The modern system relies on dedicated
carriers to offer protection against specified perils in consideration of a premium. Liability
insurance is designed to offer specific protection against third party claims, i.e., payment is not
typically made to the insured, but rather to someone suffering loss who is not a party to the
insurance contract. In general, damage caused intentionally and contractual liability is not
covered under liability insurance policies. When a claim is made, the insurance carrier has the
right to defend the insured. The legal costs of a defense are not always affected by any policy
limits, which is useful because they can be significant

Casualty insurance
Casualty insurance policies are written to cover loss that is the direct result of accident. It may
include
Auto liability insurance for car accidents,
Marine insurance for shipwrecks or losses at sea, and etc.
91

Life, health and property insurance are typically excluded from the definition. Loosely used to
describe an area of insurance not particularly or directly concerned with life insurance, fire
insurance or automobile insurance. Most frequently it refers to liability, crime and plate glass
insurance but may include surety as well.

Disability insurance
Disability insurance, often called disability income insurance, is a form of

insurance that

insures the beneficiary's earned income against the risk that disability will make working (and
therefore earning) impossible. In other words, disability insurance answers the question,
"How would I pay for my living expenses if I became unable to work?"

FINDINGS

92

Angel Broking Ltd. is a world class company and providing very good services to its
clients
Its main objective to provide personalize services to the clients
In the survey it found that 50 percent people among the whole are aware about the
services providing by Angel Broking Ltd
44 persons are like to invest in share market among the total which is the highest
among other alternatives
Around 38 People among total are more aware about Angel Broking Ltd. and like to give
preference
There are 77 percent persons among total who like to invest in Angel Broking Ltd. than
others and 33 percent are used to trade daily
Angel Broking Ltd. is providing lots of services to its clients like PMS, Investment
Advisory, M-Connect, E-Broking, Insurance, Mutual Fund
89 percent people said that their company from where they are availing investment in
stock market is providing online trading and others are not
Among all the companies Angel Broking Ltd. is at the 1st no.

SUMMARY OF LEARNING EXPERIENCE

We can summarize of our learning experience as how to behave in corporate world.
1. How to work under pressure
2. How to handle team.
3. How to get worked done from team.

93

4. To maximize the market share of the organization and how to interact with the customer it is
known.
5. What is the working process of organization?
6. How to fight with competitors.
7. How to find out the weaknesses of competitors.
8. How to convert competitors client in our organization client.
9. How to analyze the need of client.
10. How to satisfy the need of client.

94

Method of Survey
95

 Identification of problem-: What is the individuals Investment strategy in equities and other
investment options?

Data collection -:

Primary data -: By survey of individuals

Sample size -: 100 people

People surveyed -: investors of equity market and others

Group 1-: Businessmen

Sample size -: 25 people
Income slab -: 500000 to 5000000 per annum
Age group -: 25 to 45 years
Educational background -: Higher secondary to post graduation including
professional courses.

Group 3 -: Private employees

Sample size -: 25 people
Income slab -: 180000 to 700000
Age group -: 22 to 35 years
Educational background -: graduates and post graduates including professional
courses

Group 4 -: Retired personals

Sample size -: 25 people
Income slab -: 500000 to 1000000 per annum
Age group -: 60 to 75 years

Group 2 -: Government employees

Sample size -: 25 people
Income slab -: 250000 to 500000 per annum
Age group -: 35 to 55 years
Educational background -: graduates & post graduates

Educational background -: graduates and post graduates

Survey pattern -:I have surveyed through personal interview and telephonic interview.
96

Secondary data -: I have collected secondary from website.

SURVEY RESULTS

GRAPHICAL PRESENTATION OF PERCENTAGE OF

INVESTMENT IN RELIGARES DIFFERENT
INVESTMENT OPTIONS

97

In survey I have found that there are more investors of equity market in Religare as compare to
other investment options. The above graph shows the Religares presence in financial market
that it has its presence in every financial sector but it has more investors of equity market.

98

99

Equity
Businessman
60%

Risk high risk

Government employees
60%

Return high return

Private employees
40%

Advantages there is both

investment options are available
intraday & delivery hence investor
can invest his\her money for long
term & short term as well.

Retired personals
20%

Disadvantages in equities returns

depends upon the market conditions.
There are no fixed returns. Hence
investors money is always on risk.

100

Commodity

Risk risk is high but less as

compare to equities
Businessman
25%

Returns returns are always

according to risk. High risk high
return low risk low return

Government employees
20%

Advantages Extended trading hours Indian

commodity market operates for 14 hours a day
covering timing of all major international
commodity exchanges, thus giving traders ample
time to earn profits.

Disadvantages there is trading depends upon the lot

size of the particular commodity customer can not
purchase or sell according to his\her requirement.

101

Private employees
35%
Retired personals
40%

Insurance
Businessman
85%

Risk depends upon the

plan that plan is only
insurance or insurance
cum investment

Government employees
60%
Private employees
70%

Return returns depend upon the

premium which the investor paid
annually hail-yearly or quarterly.

Retired personals
35%

Advantages insurance is a planning of risk

covering. Returns are comparable which are
given by the insurance with returns are given by
the equities and risk is less than equities
because there is some fixed returns in case of
insurance cum investment plans.

Disadvantages in insurance there are some terms

and conditions which the client has to follow and
if he\she does not know about it than his\her
money is on stake ex. In case of suicide the
beneficiary of the insurance will not be able to
take advantage of the insurance.

102

Fixed
deposit
Businessman
15%

Risk risk factor

is minor

Government employees
35%
Private employees
45%

Return there are fixed

returns in fixed deposit

Retired personals
15%
Advantages there is safe
investment and fixed returns in
FDS. Investor can get regular
income through FDS.

Disadvantages there are fewer returns

in FDS as compare to stock market and
returns are affected from the inflation
rate.

103

Fixed
maturity plan
Businessman
58%
Risk risk is higher
than FDS but lowers
than stock market

Government employees
32%
Private employees
40%

Return returns are also higher

than FDS but lowers than stock
market but according to market
condition.

Retired personals
25%

Advantages investor can invest

his\her money for long term and
short term as well.

Disadvantages there is no fixed

returns and returns are again will be
according to market conditions.

104

PMS

Risk higher risk

because investor has to
invest his\her money
in bulk.

Businessman
75%
Government employees
10%

Return because risk is higher and

returns are according to risk thus
returns are also higher depends
upon the market conditions.

Private employees
45%
Retired personals
10%

Advantages investors who dont

have time to manage their money can
invest their money in PMS because in
such plans fund managers manage the
money of investor.

Disadvantages there is no interference

of investor in such plans and returns
depend upon the market condition and
fund managers ability also. If fund
manager is not well qualified and well
experienced than investor may go in loss.

105

COMPARATIVE ANALYSIS OF EQUITIES WITH OTHER INVESTMENT

OPTIONS ACCORDING TO INDIVIDUAL
INVESTMENT PREFERENCE

Figures in %

106

Arguments in favour of equities made by people

More returns
Both long term and short term investment facilities are available
Investments in diversified fields i.e. in different sectors like IT, infra etc.
Both online and offline facilities are available

Arguments in against of equities made by people

More risky
No fixed returns
Returns depends upon market conditions

TARGET/TASKS

The Target for Summer Internship Program in RELIGARE SECUERITIES LTD. is

convincing people to invest in STOCK MARKET through our company.

Convince people to open D-MAT accounts inspire them to trade with our company.

Overall Target To open 10 D-MATS accounts within a month or 2 Demat accounts per
week.

Target Achieved I have opened 7 D-MAT accounts for Religare securities ltd including
2 Dhamaka super in 6 weeks.

107

SWOT ANALYSIS

Religare Securities Limited is one of Indias leading equities and

Securities firms and offers services spanning equity broking,
Depository participant, portfolio management, institutional brokerage
And research, investment banking and corporate finance. With
50,000 of Religares 600,000-strong client base conducting trades
on a daily basis, the organization employs 150 staff to ensure the
IT infrastructure underpinning the business can support demand.
The infrastructure operates across a production datacenter in New
Delhi, another center in Mumbai and servers housed in co-located
Data centers run by third parties.
Our production datacenter currently hosts about 300 servers with the
Majority catering to trading requirements, said Saurabh Srivastava,
HeadInfrastructure (IT), Religare Securities. We have huge traffic at
Any given time.
With demand surging and plans to expand to 500 branches across
India, Religare turned to VMware virtualization to deliver horizontal

108

Scalability. Right now, we have 250 servers and we are running a

Further 35 as virtual machine hosts to support forecast load increases,
Srivastava said. We are running about 150 virtual machines at up to
12 per physical host depending on the hardware specifications.
Religare Securities is currently implementing blade chassis housing
Up to four servers each in its datacenters to increase utilization of
Rack space and ease datacenter real estate, power and cooling loads.
The virtualized environment spans up to 60 machines allocated to
User acceptance testing as well as multiple virtual machines hosting
Application and Web servers.

We are running business-critical trading applications in our virtualized

Environment with no problems at all, Srivastava said. There has been
No performance degradation despite intense application usage.
Results
Achieved a server consolidation ratio of up to 12:1
Increased average CPU utilization from 25-30% to 60-70%
Saved almost Rs.10 million (US$231,965) in server hardware
Acquisition costs
109

 Cut power consumption by 10-20%

Improved application availability and reduced downtime
Provided a platform to establish a DR site by the end of 2008ation usage.

110

Conclusion
From this summer training and project I have come to know that individuals are now investing
in equities rather than other investment options because from recent past years their income
has increased due to more employment options. Now individuals are more broad minded and
hence they are ready to take risk and they want extra returns.
From the survey I have analyzed that businessmen and
retired personals invest more in equities. Businessmen have more money to invest because of
their extra income and they want extra returns from their investment. They are not satisfied
with the returns from the fixed deposits and fixed maturity plans. And hence they are always
ready to take risk. Retired personals are also interested in equity market. After retirement they
have enough time but they dont have any source of income. Some of them prefer any part
time job but most of the retired personals prefer investment in equity market. It is the best
option of income for such people.
Government and private employees also invest in equity market but the ratio
of investment of government and private employees in equity market as compare to
businessman is less. The reason is limited income of government employees. They have to
hold some money with them in FDs and insurance for future contingencies.

111

QUESTIONAIRE FOR DATA COLLECTION

Dear Respondent, your valuable time and effort in filling this questionnaire are highly
appreciated. The information collected through this questionnaire will be used for academic
purpose only.
Personal Details
Name

Occupation

Age

Monthly income

Gender

Contact No.

1. In which investment avenue you have put in your money? Tick them.
If you have more than one, tick both of them.
Life insurance
Mutual fund
Bank deposits
Company deposits
Post office schemes
General insurance
Equity
2. How much risk you can tolerate?
High
Moderate
Low

112

3. What are the benefits you look forward from a life insurance policy?

Tax saving
Investment
Security
I and III

4. In life insurance which type of plan you invest your money? if more than one you
can tick both of them?
Whole life plan
Term plan
One time insurance
ULIP

5. What is the feature you give most importance before choosing any life insurance
policy?
Premium
Tenure
Maturity value
Tax benefit

6. Why do you invest in mutual funds?

Higher returns
Short term investment
Both

113

7. Which of the schemes you give importance while investing in Mutual

Funds?
Income schemes
Growth schemes
Balance Schemes
Hybrid schemes

8. What is the feature you give most importance while investing in fixed deposits?
Safety
Assured returns
Tax benefits

9. Do you invest in general insurance?

Yes
No
10. For what you have adopted the general insurance policy? If more than
one than tick both.
Vehicle
Health
Accident
Property

114

11.What feature you give most importance while investing in general insurance?
Security
Accidental Risk
Short term investment
Reliability

115

RECOMANDATION

Religare Securities Ltd. is a Ranbaxy Promoter Company is a broking house. It provides all
financial products\services to its clients. It has equity market instruments, commodity market
services, insurance, mutual funds and all financial tools in which inventors wants to invest. But
there are some core areas Religare must do look after to enhance its business and profit as
well. So that it can show same level of presence in all financial sectors. I want to recommend
the following suggestions -:

It should look after its insurance sector because its insurance business is weaker

as compare to its equity business.

It should also give importance to its portfolio management services so that it can

enhance its financial revenue and brokerage as well.

It must look after its mutual fund business because its mutual fund business is on

its lowest part.

It can also enhance its commodity services because its commodity sector is in

very good condition hence if it look after its commodity business than it can earn more
and more profit through its commodity business.

116

BILIOGRAPHY
www.religare.in
www.google.com
www.wikipedia.com

117