Summer internship

At
India Infoline Ltd.

“Study & growth of Mutual fund Industry”

Submitted To:

Submitted By:
Himalay Lakum
Div : A
Roll No. 26

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PREFACE
“A good broker system must be able to cope with an extremely
complex and dynamic environment.”
The microstructure of the stock market in which brokers work is highly
dynamic and volatile. Many stocks are available to be bought and sold,
each exhibiting its own patterns and characteristics that are highly
unpredictable. With so many options and considerations that need to be
taken into account, it is an extremely arduous task for a broker to
investigate aspects of the stock market and consistently provide
effective advice to their clients.
Thus, brokers perform their day-to-day tasks with the aid of a broker
system. Such a system should provide tools for interacting with
exchanges and performing analysis. As a consequence, these broker
systems are quite large and complicated by themselves.
This research aims is to analysis Stock broker on the basis of their
services, products, growth, and their subsidiaries. Because Stockbrokers
are one of the main participants in stock exchanges worldwide, they
often act as an agent for their clients, making trades on their behalf.
They also act as advisors, providing suggestions to their clients on what
stocks to buy and sell.

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 ACKNOWLEDGEMENT
“Expression of feelings by words makes them less
significant when it comes to make statement of
gratitude”

It gives us pleasure to express our most profound regards and sense of

great indebtedness and sincere gratitude to our Company Guide Mr.
ANKIT PATHAK (Branch Manager, IndiaInfoline ltd.
BHAVNAGAR).Last but not least, our sincere thanks to our parents and
friends who directly or indirectly helped us to bring this project into the
final shape.

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 DECLARATION
We, hereby declare that project entitled, “Study on Growth of Equity,
Commodity, Currency, Derivative, Mutual Fund & SIP, Term Life Insurance
Plan” submitted in partial fulfillment of the Post Graduate Program, is of our own
accurate work. We further declare that all the facts and figures furnished in this
project report are the outcome of our own intensive research and findings.
This report is based on our personal opinion hence cannot be referred to legal
purpose.

4
Certificate

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 EXECUTIVE SUMMERY
In few years Mutual Fund has emerged as a tool for ensuring one’s financial well being.
Mutual Funds have not only contributed to the India growth story but have also helped
families tap into the success of Indian Industry. As information and awareness is rising more
and more people are enjoying the benefits of investing in mutual funds. The main reason the
number of retail mutual fund investors remains small is that nine in ten people with incomes
in India do not know that mutual funds exist. But once people are aware of mutual fund
investment opportunities, the number who decide to invest in mutual funds increases to as
many as one in five people. The trick for converting a person with no knowledge of mutual
funds to a new Mutual Fund customer is to understand which of the potential investors are
more likely to buy mutual funds and to use the right arguments in the sales process that
customers will accept as important and relevant to their decision.

This Project Report is based on research on the saving and investment practices of the
investors. Moreover, future requirement of financial resources, awareness of financial
planning, information about current investment, SIP and knowledge of mobile application of
IIFL all these type of data has been collected from the existing clients of IIFL and analyzed.
The analysis is also made on what are the sources available to the clients for fulfillment of
their future financial requirement. All such type of analysis helpful for the measurement of
growth of this industry. For this, the 6o respondents are analyze by face to face survey
method and simple questionnaire has been filled.

This report is divided in two parts: General Information and Primary Study. The
General Information part is start with the introduction of the financial service sector and its
scenario at world, India and Gujarat level. After that the company profile of IIFL and its
product and services are discussed. Then the major players in this industry are also discussed.
In Primary Study part the explanation of research methodology used in this project study is
given and the analysis and interpretation are made on collected data and at last the major
findings of this study are discussed.

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 Table of content
Sr. No Particular Pg.no
1 Title page
2 Certificate
3 Declaration
4 acknowledgment
5 Introduction
6 Research methodology
7 Industry profile
8 Company profile
9 Finding and conclusion
10 Bibliography

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 Chapter-1

Introduction

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History India Infoline Ltd.
Circa1995 . A group of professionals formed a company called probity Research & Services Pvt Ltd. The
name was later changed to India Infoline Ltd. The objective was to provide unbiased and independent
information to market intermediaries and investors. The quality of research soon caught the imagination of
all major participants in the financial market. In a span of 2 to 3 years the client list read like the who’s who
of Indian financial mkt. The list included consulting firms like Mckinsey, companies like Hindustan Lever,
Banks like Citibank, Rating agencies like Crisil , D&B, FIs,, FIIs, foreign brokers as well as leading Indian
brokers. The going was smooth but not exiting!

One fine morning in early 1990 a colleague had a crazy idea that if the company makes all the research
available free on the web, the business required a reincarnation. And the pre requisite was a death. It meant
that the company put up all the information free on the website and let go of all the revenues and profits.
Worse, if the new avatar failed, there would be ‘NO COMEBACKS’.

India Infoline raised US$ 1 million in the first round and completed the second round at the peak of dotcom
euphoria around march 2000 and raised US$ 5 million.

Circa 2001. The internet bubble started bursting faster than anybody could have imagined. The dotcom
suffix, which was sexiest tail to any business name suddenly became the worst stigma to have. Funding
disappeared completely, regardless of

Valuation, business model or mgt depth. The company also had a crash landing and was forced to jettison a
number of plans including one to set up a TV channel. India Infoline decided to narrow its focus on
businesses where it could leverage its core competences to one maximum. The key business lines that
emerged were mutual funds, life insurance and e-broking.

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The company becomes heavily dependent on its e-broking business for survival. The odds were against
them. There was no money available from the private equity investors at any valuation. All competitors were
backed by institutions or had abundant capital. The core promoters of the company had little experience of
broking. To add to it, the market was hit by a scam. They also had their share of price to pay and lessons to
learn. It was difficult to retain people. Although devastating for morale, but not surprising, most market
observers had written them off.

The company becomes heavily dependent on its e-broking business for survival. The odds were against
them. There was no money available from the private equity investors at any valuation. All competitors were
backed by institutions or had abundant capital. The core promoters of the company had little experience of
broking. To add to it, the market was hit by a scam. They also had their share of price to pay and lessoned to
learn. It was difficult to retain people. Although divesting for morale, but not surprising, Most market
observers had written them off.

There was a core group who never lost hope. They cut all possible costs and worked on a bare bones
structure. They survived against all odds and started capturing market share. Not broking alone but mutual
funds and life insurance businesses also grew strongly. The company rose from strength to strength to
become leading corporate agent in life insurance and among the top retail players in mutual funds and
broking space.

Then the story took an interesting turn. They raised capital by way of an IPO.

In India, investment advisory is a sunrise industry, with tremendous long term promise. The young ‘earning’
and ‘saving’ class of population is growing very rapidly. Falling interest rates are compelling people to look
around for advised investments. The industry

is consolidating as smaller players find it difficult to meet strict compliance standards to meet strict
compliance standards and service customers with research and technology. Understandably, competition is
intense. The business is susceptible to cyclical gyrations. The landscape is changing everyday and the road
ahead is less traveled by. India Infoline Ltd. Along with its subsidiaries is a unique one-stop investment
shop, which offers everything from information and advice to execution and service to the retail customers

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for the entire range of investment products from risk free RBI bonds to high risk, high reward equities and
also mutual funds and life insurance. They also forayed into portfolio mgt services and commodities
broking, again leveraging upon their core competencies in research and technology.

The company promises to continue to deliver high quality independent research and maintain high standards
of integrity and compliance. The mgt realizes that the business is highly vulnerable to lapses in risk
management. Over the years, it has evolved a clear and logical risk management system, which stood the
trial by fire on May 17, 2004. They will continue to fortify the same.

There are a number of opportunities on the horizon and with availability of capital, temptations abound. The
management is fully conscious of the fact that with public money it is in a fiduciary relationship with
heightened responsibilities to ensure optimum use of capital. There is no hurry to take short cuts. Being a
listed company, quarterly performance has to be reported. Which is then reviewed, analyzed and compared
against expectations and competition? There would be pressures to boost performance in short term. The
mgt shall not succumb to such pressures. Business shall be built brick by brick keeping long term potential
in mind. We shall refrain from building, meeting, maneuvering street expectations or worry about stock
price fluctuations in the short term.

In the last ten years, India Infoline has faced numerous ups and downs, but has never compromised on
integrity. They continue to ensure highest standards of corporate governance.

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 The Team Management

Mr. Nirmal Jain

Nirmal Jain is the founder and Chairman of India Infoline Ltd. He holds an MBA degree from IIM Ahmedabad, and is
a Chartered Accountant (All India Rank 2) and a Cost Accountant. He has had an impeccable professional and
academic track record. He started his career in 1989 with Hindustan Lever Limited. During his stint with Hindustan
Lever, he handled a variety of responsibilities, including exports and trading in agro- commodities with Rs3bn annual
turnover. He then joined hands with two local brokers to set up their equity research division, Inquire, in 1994. His
work set new standards for equity research in India. In 1995, he founded his own independent financial research
company, now known as India Infoline Ltd.

Mr. R Venkataraman

R Venkataraman is the co-promoter and Executive Director of India Infoline Ltd. He holds a B. Tech degree in
Electronics and Electrical Communications Engineering from IIT Kharagpur and an MBA degree from IIM

Bangalore. He has held senior managerial positions in various divisions of ICICI Limited, including ICICI Securities
Limited, their investment banking joint venture with J P Morgan of USA and with BZW and Taib Capital Corporation
Limited. He has also held the position of Assistant Vice President with G E Capital Services India Limited in their
private equity division. He has varied experience of more than 14 years in the financial services sector.

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THE BOARD OF DIRECTORS

Apart from Nirmal Jain and R Venkataraman, the Board of Directors of India Infoline comprises:

Mr . Sat Pal Khattar (Non Executive Director)

Mr. Sat Pal Khattar joined the Board with effect from April 20, 2001. Mr Sat Pal Khattar is a lawyer by
profession He was the founding partner of a firm of solicitors in Singapore named Khattar Wong and at
present is a Consultant in the said firm. He is also a director of a number of public companies in Singapore
and India. He is the Chairman of 'Network India', a body sponsored by the Government of Singapore, which
promotes two-way business contacts between Singapore and Indian business interests.

Mr Sanjiv Ahuja (Independent Director)

Mr Sanjiv Ahuja joined the Board with effect from August 28, 2002. Mr Ahuja graduated from National
University of Singapore with a degree in Computer Science and is also a Certified Public Accountant. He
started his career in 1988 with Accenture (formerly Andersen Consulting) and has worked on several large
projects particularly in the electronics and utilities industries. He joined the Thakral Group of Companies in
1991 as the Chief Executive of their electronics packaging and Warehousing company in Singapore and has
also headed the group's Indian Investments division. He started his own investment advisory and consulting
company in 2001, named Centennial Management Consultants Private Limited, focusing on investment
mediation and investment management and advice. At present, he is also an Executive Director with
Corporate Brokers International Private Limited, a reputed Singapore based mergers and acquisitions firm
focusing on the SME space and also a board member of the Singapore Indian Chamber of Commerce and
Industry, a post he has held since 2002. He is very familiar with the South Asian and South East Asian

Markets and has direct investment experience in a variety of industries including real estate development,
distribution and information technology. Mr Ahuja has an experience of more than 17 years.

Mr Nilesh Vikamsey (Independent Director)

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Mr Nilesh Shivji Vikamsey joined the Board with effect from February 11, 2005. Mr Vikamsey qualified as
a Chartered Accountant in 1985 and has been a member of the Institute of Chartered Accountants of India
since 1985. He has a Diploma in Information System Audit ("DISA") from the Institute of Chartered
Accountants of India in 2003. In 1985, Mr Vikamsey was inducted as partner in M/s Khimji Kunverji & Co.,
Chartered Accountants and was in charge of the audit department till 1990 and thereafter also handles
assignments related to financial services, consultancy, investigations, mergers and acquisitions, valuations
etc. Mr Vikamsey is a director of Alpha Garments Private Limited, English Apparels Private Limited, HLB
Technologies (Mumbai) Private Limited, Miloni Consultants Private Limited & Chairman of HLB India. Mr
Vikamsey is a member of the Accounting Standards Board and erstwhile Member of the Vision &
Restructuring Committee of Institute of Chartered Accountants of India and member of Expert Committees
of Law and Company Affairs, Infotainment & Media and Economic & Business Reforms formed by the
Indian Merchants' Chamber.

Mr Kranti Sinha (Independent Director)

Mr Kranti Sinha joined the Board with effect from January 27, 2005. Mr Sinha graduated from the Agra
University with a Masters degree. He started his career in 1965 as a direct recruit Class I officer with Life
Insurance Corporation of India and has worked in various capacities and at different locations throughout the
country. He worked at various managerial levels and rose through the hierarchy to serve as the Director and
Chief Executive of LIC Housing Finance Limited from August 1998 to December 2002 and concurrently as
the Managing Director of LICHFL Care Homes (a wholly owned subsidiary of LIC Housing Finance
Limited). He retired from the permanent cadre of the Executive Director of LIC. He has also served as the
Deputy President of the Governing Council of Insurance Institute of India and as a member of the Governing
Council of National Insurance Academy, Pune apart from various other such bodies. He is currently the
Managing Director of The Global Institute for Financial and Education Services (India) Private Limited (a

wholly owned subsidiary of The Global Institute, LLC, USA). Mr Sinha is also on the Board of Directors of
Hindustan Motors Limited, Larsen & Toubro Limited.

VISION:

Vision is to emerge as the most respected financial services company in India. We will be respected by our
stakeholders if we beat street expectation and grow faster than the industry, by customers if our research and
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services is par excellence, by employees if we can build a wonderful environment to work in, by society if
we are a responsible corporate citizen. Needless to emphasize that it is imperative for all of us to have to
adhere to.

CULTURE AND CORE VALUE:

 Owner Mindset(OM)
 Energy
 Execution
 Effort
 Ethics
 Excellence
 Application Of Mind(AOM)
 OM and AOM with system and processes

A few years into the business, the organisation found itself with clients which included research
organisations, banks and corporate. They then began launching their research products to become more
noticeable in the market. In the meanwhile, the dotcom revolution was beginning to take place in India. The
website was created in 1999. Taking the business one step ahead this group of consultants opened a trading
portal – www.5paisa.com in 2000 thus moved into the business of being a full service broking agency.
During this time they widened their distribution network.

In 2001, the Indian dotcom industry saw a downfall. During this time, sustaining became tough. The
organisation then decided to tie-up with leading Life Insurance company ICICI Prudential, thus putting to
use its distribution network and becoming India's first corporate agent for insurance.

Today, IIFL Holdings Limited is India’s leading integrated financial services group with diverse
operating businesses, mainly, Non Banking and Housing Finance, Wealth and Asset Management, Financial

Advisory and Broking, Mutual Funds and Financial Product Distribution, Investment Banking,
Institutional Equities, Realty Broking and Advisory Services. IIFL serves more than 4 million satisfied
customers across various business segments and is continuously building on its strengths to deliver excellent
service to its expanding customer base. IIFL Holdings has a consolidated net-worth of over Rs 30 billion
with a global presence in US, UK, Singapore, Hong Kong, Switzerland, Mauritius, and UAE. With an
employee workforce of over 10,000, a strong network of over 2,000 service locations spread across India,
over Rs 200 billion loan assets under management, over 500 stocks under research, more than 300 of the

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world’s top institutional investors rely on IIFL's research. Headquartered in Mumbai, IIFL has offices in
New York and London.

It is the organization which gives more important to its core values- F.I.T, which full form is Fairness,
Integrity and Transparency. This means Fairness in transaction; Integrity and honesty in letter, in spirit and
in all dealings with people; Transparency in all dealings with stakeholders, media and investors. IIFL is
ranked among the top seven financial conglomerates in India and as the top independent financial services
firm in India in terms of market capitalization. Nirmal Jain is the Chairman of the group, while R
Venkataraman is the Group Managing Director and Co-Promoter.

IIFL has been awarded by Euromoney for the Best Private Banking Services Overall in India for 2017.
It has also been adjudged as the Best Private Bank in India at the Global Finance Best Private Bank Awards
in 2017. Headquartered in Mumbai, IIFL has offices in New York and London.

IIFL is an India-focused financial services house with two principal businesses: equity broking and
investment banking. With trading memberships in both the premier stock exchanges in India – NSE and BSE
– IIFL offers research, sales and trading services for its institutional clients. IIFL’s broking clientele includes
sovereign wealth funds, mutual funds, pension funds, endowment funds, private equity funds, insurance
companies, hedge funds, alternate investment funds, both domestic and foreign. IIFL Holdings Limited is a
Category of Merchant Banker and the investment banking business encompasses merchant banking, private
equity and M&A advisory services.

Corporate Structure

IIFL Holdings
Ltd.

IIFL Wealth
India Infoline India Infoline
Management
Finance Limited Limited
Limited

India Infoline Samasta IIFL Asset

International
Housing Finance Microfinance Management
Subsidiaries
Limited Limited Limited

About IIFL Premia

Priority Relationship Management & Investment Advisory (PREMIA) is a multi-product, customized

financial environment which aims to generate superior returns for IIFL's preferred clients, by investing
across varied asset classes. It is one of specialized channel which continuously helps to the investors by a
team that's vastly experienced and trained in different aspects of the stock market, assuring investors by a
multi-faceted opinion for all financial queries. In This Channel Relationship Managers and Investment
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Advisors are MBAs / CAs / CFAs, who come with a rich experience in Wealth Management / Private Client
Group Broking / Priority Banking. They have sound knowledge of Financial Products and most importantly
place their clients before everything else.

IIFL Premia has 23 branches across India. Moreover, every branch have State-of-art Dealing Rooms,
Robust back-end systems, Dedicated team of Analysts, Fund Management expertise, Product Desk to
provide customized products which are a combination of Equity and Debt, Desk for International Equity.

ABOUT THE FINANCIAL SERVICE INDUSTRY

Broadly speaking, companies that operate in the financial services industry are in the business of
managing money. The financial services industry plays a vital intermediary role in the world economy,
moving funds from entities with excess funds to those with a need for funds. It includes firms that are
engaged in activities such as investing, lending, insurance, securities trading and securities issuance.
Its clients are individuals, businesses, non-profit organizations and agencies of government.

Financial services are the economic services provided by the finance industry, which encompasses a
broad range of businesses that manage money, including credit-card companies, insurance companies,
accountancy companies, consumer finance companies, stock brokerages, investment funds and some
government-sponsored enterprises. Financial services companies are present in all economically developed
geographic locations and tend to cluster in local, national, regional and international financial centers such
as London, New York City, and Tokyo. Financial services form the lifeblood of economic growth and
development. They facilitate the setting up of big and small businesses and the expansion of businesses.
Employment and entrepreneurship created with the help of the services enable people to earn and save. The
financial services industry is the largest-earning sector in the world. Through interventions in industry and
agriculture and other formal sectors, they provide lines of credit and investment.

Financial service sector in India

The financial services sector in India, which accounts for 6 percent of the nation’s GDP, is growing
rapidly. Although the sector consists of commercial banks, development finance institutions, nonbanking
financial companies, insurance companies, cooperatives, mutual funds, and the new “payment banks,” it is
dominated by banks, which holds over 60 percent share. The Reserve Bank of India (RBI) is the apex bank
of the country, controlling all activities in the financial sector. Commercial banks include public sector and
private sector banks and are under the regulatory supervision of the RBI. Development finance institutions
include industrial and agriculture banks.

Non-banking finance companies (NBFC) provide loans, purchase stocks and debentures, and offer
leasing, hire purchase, and insurance services. Insurance companies function in both public and private
sectors and are controlled by the Insurance Regulatory and Development Authority (IRDA). India also has a
vibrant capital market with stocks exchanges controlled by the Securities and Exchange Board of India
(SEBI).

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 According to “India in Business,” a website of the Union Government, India’s banking sector assets
were worth $1.8 trillion in the 2014-15 financial year. According to a report by KPMG-CII, India’s banking
sector is on the way to becoming the fifth largest in the world by 2020. The country’s life insurance sector is
the biggest in the world, and the market size is expected to touch about $400 billion by 2020. The assets of
the mutual fund industry are worth $190 billion. The pension corpus fund is projected to record $1 trillion by
2025. Reforms to put the financial services industry and the economy on the fast track include measures to
make finance available to medium, small, and micro industries.

India once had a heavily government-dominated financial services industry, and most services were
provided by nationalized banks. Financial sector reforms were initiated in 1991 with the aim of accelerating
economic growth. In the following years, industry and service sectors were opened up for foreign direct
investment. The reforms ended the dominance of the public sector and reduced direct government control on

industrial investments. Financial sector reforms in India have improved resource mobilizations and
allocation. The liberalization of interest rates and the easing of cash reserve norms have helped make funds
available to various sectors.

In India, The Financial Services are divided into three parts:

A) Capital Market

B) Insurance

C) NBFCs.

 Capital Market
Asset Management, Broking and Wealth Management are the sub parts of this segment. The growth detail of
each sub parts are as follows:

Asset Management -:

The asset management industry in India is among the fastest growing in the world. As of FY16, 42 asset
management companies were operating in the country. In September 2016, the assets under management of
the mutual fund industry stood at USD244.42 billion, showing a 12 per cent growth over the last quarter. In
2016, the country registered a record inflow of mutual funds at USD 29.74 billion per annum & in
systematic investment plans, investments crossed USD 594.97 million per annum. During FY07-16, India’s
AUM grew at a CAGR of 12.4 per cent, with the country’s overall AUM reaching USD206.8 billion as of
FY16. During December 2016, mutual fund equity schemes attracted a net inflow of USD 1.50 billion.

Broking -:

Steadily rising turnover in financial markets has led to rapid expansion of the brokerage segment.
Between FY96 and FY16, the annual turnover value in NSE witnessed growth at a CAGR of 19 per cent
reaching a value of USD647 billion in FY16. The number of companies listed on the NSE rose from 135 in
1995 to 1,811 in June 2016. The increase in broking companies due to the increase in the number of listed
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companies on NSE and BSE increased from 6,445 in FY10 to 7,719 in FY16. The brokerage market has
become more competitive with the entry of new players & increasing efforts of existing players to gain
market share.

Wealth Management -:

This is an emerging segment in capital market. The growth in this segment measure in terms of growth in
HNWI. Between 2011 and 2016, number of HNWIs in India has seen a steady rise at a CAGR of 13.8 per
cent. High net worth individual would grow at an even faster rate till 2019 growing at a CAGR of about 21.5
per cent. By the end of 2025, global HNWI wealth is estimated to grow to over USD100 trillion. The
Advisory asset management & tax planning has one of the highest demand among wealth management
services by HNWIs; this is followed by financial planning.

 Insurance
Life and Non-life are two sub parts of this sector. The growth of these two segments are as follows:

Life Insurance -:

The life insurance market has grown from USD10 billion in FY02 to USD56.05 billion in FY16. Over
FY02–16, life insurance premiums witnessed growth at a CAGR of 13.10per cent. Business of life insurance
companies from first year premium stood at USD 15.38 billion for the year period ended 30th
November, 2016.

Non-life Insurance -:

The non-life insurance market grew from USD2.6 billion in FY02 to USD13.4 billion in FY16. During
FY02–16, increase in non-life insurance premiums witnessed at a CAGR of 12.4 per cent while premiums
generated by private players surged at a CAGR of 34.1 per cent & premiums from public sector companies
increased at a CAGR of 8.0 per cent during the same period. During FY16, number of insurers grew at a
strong 8.6 per cent in comparison to FY15.

Motor insurance accounted for 39.04 per cent of the gross direct premiums earned till November 2016
(down from 41 per cent in FY06) & stood at USD4.87 billion till November 2016. At USD2.95 billion (till
November 2016), the health segment seized 23.63 per cent share in gross non-life insurance premium.

 NBFCs:
NBFCs are rapidly gaining prominence as intermediaries in the retail finance space. NBFCs finance more
than 80 per cent of equipment leasing and hire purchase activities in India. As of March 31, 2015, there were
11,842 NBFCs registered with the RBI, of which 220 were deposit-accepting (NBFCs-D) & 11,622 were
non deposit accepting (NBFCs-ND), while around 2094 NBFC’s registered companies certification has been
cancelled (As of September 2014). NBFCs aspire to emerge as a one-stop shop for all financial services. As
of June 2017, the financial services industry is expecting credit growth rate of 15-20% for NBFCs in the next
8-10 years

Financial Services Sector in Gujarat

According to the DIPP, FDI inflows in the state of Gujarat totalled US$ 13.28 billion during April 2000-
March 2016. Gujarat accounted for about 4.6% share in the overall FDI inflows in India. Moreover, Gujarat
has highest amount of bank deposits on a per capita basis in a country. Gujarat has largest pool of retail
19
investors in the country. Approximately 30 percent of retail investments in India’s stock market are from
Gujarat. The government policies are also encourage this sector by construct a Gift City.

About major companies in the industry

 Motilal Oswal Financial Services Limited

Motilal Oswal Financial Services Ltd. is a diversified financial services firm offering a range of financial
products and services such as Wealth Management, Retail Broking and Distribution, Institutional Broking,
Asset Management, Private Equity, Investment Banking, Commodity Broking and Home Finance.
The company was formed in 1987 by Motilal Oswal and Raamdeo Agrawal after they acquired membership
on The BSE. Motilal Oswal was elected director and joined the Governing Board of the BSE in 1998.
The company started offering Derivatives products and advisory services on both BSE as well as NSE in
2001. In 2006 the company entered Private Equity and Investment Banking business. In the same year, Motilal
Oswal group acquired South Indian brokerage firm – Peninsular capital markets. The company tied up
with State Bank of India and Punjab National Bank in 2006 and 2007 to offer online trading to its customers.
2008 saw the company create one of India's largest Equity. In January 2010, Motilal Oswal Financial
Services (through its subsidiary Motilal Oswal Securities Ltd.) received the final certificate of registration
approval from SEBI to set up a mutual fund business in the country.
Motilal Oswal Asset Management Company (MOAMC) is registered with SEBI as the Investment Manager
for Motilal Oswal Mutual Fund. It was incorporated on November 14, 2008. MOAMC is a 100% subsidiary
of Motilal Oswal Securities Limited. Motilal Oswal Asset Management Company Ltd., one of the fastest
growing Asset Management Companies in India and has recently crossed the $1 billion in equity Assets
Under Management (AUM) mark in June 2015 registering itself into an elite club.
Aspire Home Finance Corporation Limited (AHFC) is a subsidiary of Motilal Oswal Securities Limited
(MOSL) which is a part of Motilal Oswal Financial Services Limited (MOFSL) Aspire AHFCL is a
professionally managed housing finance company with unique combination of financially sound and
technically experienced promoters who are well known in their domain for professional ethics and strong
execution capabilities.
This company received “The Innovative Product and Services Award” at 7th National Conference and Game
Changers Awards, 2017. Motilal Oswal Real Estate Investment Advisors wins the " Best Real Estate Fund of
the Year - Domestic" at the CNBC - AWAAZ Real Estate Awards 2016 -17 Motilal Oswal Financial
Services Ltd wins Banking Frontiers FINNOVITI Awards 2017 for its Watch App.

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  BNP Paribas

BNP Paribas is an international banking group with a presence in 75 countries. BNP Paribas is one of
the largest bank in the world. Its main financial services include Assets Management, Consumer Banking,
Corporate Banking, Credit Cards, Investment Banking, Mortgage Loans, Private Banking, Wealth
Management.
It was formed through the merger of Banque Nationale de Paris (BNP) and Paribas (see below for name
origin) in 2000. Retail Banking & Services, a global network of nearly 7,000 branches, comprising Domestic
Markets and International Financial Services, and Corporate & Institutional Banking (CIB).
BNP Paribas has had a presence in India for over 150 years having established its first branch in Kolkata, in
1860. With this unparalleled experience of the Indian market, it is among the leading corporate banks in the
country. Through its branches in eight key cities Mumbai, Delhi, Kolkata, Chennai, Hyderabad, Bangalore,
Ahmedabad and Pune. BNP Paribas offers sophisticated solutions in its three core businesses — Corporate
and Institutional Banking, Investment Solutions and Retail Banking, many of them in association with strong
local partners.
BNP Paribas’ Corporate & Institutional business is an active player in Fixed Income and Debt Capital
Markets, Cash Management & Trade, Corporate Finance and Institutional Equities. The bank also offers
services for individual clients in Wealth Management.
BNP Paribas has a presence in other businesses through joint ventures in Home Finance and Securities
Services with Sundaram Group; in Life Insurance with State Bank of India. In addition, the Group has
subsidiaries in Fleet Management (Arval) and has an asset management company, BNP Paribas Mutual
Fund.
Sharekhan Founded in 2000 and a subsidiary of BNP Paribas since November 2016, Sharekhan was one of
the first brokers to offer online trading in India. With 14 lakh clients, 153 branches and more than 2300
business partners, Sharekhan is the largest independent broker in India. On an average, Sharekhan executes
more than 400,000 trades daily. It offers range of savings & investment services like equities, futures &
options, portfolio management, research & investing in mutual funds. In 2016 Sharekhan has been bought by
BNP Paribas.

SBI Life Insurance is a joint venture between State Bank of India and BNP Paribas Cardiff. SBI Life
Insurance SBI Life develops and markets savings and protection solutions for individuals, as well as
employee benefit solutions to corporates.

21
  Angel Broking

Angel Broking is an Indian stock broking firm established in 1987. Entrepreneur Dinesh Thakkar started his
business in 1987 with a capital of Five Lakhs Indian Rupees and lost half of the money within eight months.
In 1989, he started off again as a sub-broker. Later, Angel Broking was incorporated as a wealth
management, retail and corporate broking firm in December, 1997. In November 1998, Angel Capital and
Debt Market Ltd. gained membership of NSE as a legal entity. The company opened its commodity broking
Division in April, 2004. In November 2007, Birla Sun Life Insurance joined hands with Angel Broking for
distribution of its insurance products. In 2007 the World Bank arm International Finance Corporation bought
18% stake in Angel Broking.
The company has 8500+ sub-brokers and franchisee outlets in more than 900 cities across India. The
company publishes research reports on areas related to investment broking. Angel Broking offers products
such as Angel Eye, Angel SpeedPro, Angel Trade and Angel Swift for online trading. Angel Eye is a
browser trading application; SpeedPro is a trading platform application; Angel Trade offers an online trading
platform for share investors, while Swift consists of a trading app for small devices. In March, 2016 Angel
Broking was awarded the Top Performing Member in Currency Futures - NSE

22
  ICICI Securities

The company was incorporated in 1995 and is based in Navi Mumbai, India. ICICI Securities Limited is a
subsidiary of ICICI Bank Limited. ICICI Securities Limited provides institutional and retail broking,
merchant banking, and advisory services to corporates, financial institutions, high net-worth individuals, and
retail investors in India. It offers equity capital market products, such as initial public offerings (IPO), further
public offerings, rights offerings, convertible offerings, qualified institutional placements, non-convertible
debentures, buyback, delisting, and open offers and international offerings for unlisted and listed entities.
The company also provides advisory services for acquisitions, divestitures, joint ventures, corporate
restructurings, recapitalizations, spin-offs, mergers, and exchange offers; and private equity advisory
services on various products, including mezzanine and private equity financing, secondary sale transactions,
pre-IPO deals, and preferential allotments by listed companies.
In addition, it operates ICICIdirect.com, an online broking platform to invest in equity, derivatives, currency
futures, mutual funds, and other financial products, as well as to access research information, stock picks,
and mutual fund recommendations. Further, the company operates financial superstores that provide
products, such as online trading accounts, equities, mutual funds, IPOs, life and general insurance, fixed
deposits, and other financial products; and offers trader, equity research and advisory, and wealth
management services.

ICICI Securities operates out of 66 cities and towns in India and global offices in Singapore and New
York. ICICI Securities Inc., the step down wholly owned US subsidiary of the company is a member of the
Financial Industry Regulatory Authority (FINRA) / Securities Investors Protection Corporation (SIPC).
ICICI Securities Inc. activities include Dealing in Securities and Corporate Advisory Services in the United
States. ICICI Securities Inc. is also registered with the Monetary Authority of Singapore (MAS) and operates
a branch office in Singapore.

ICICI Securities wins Global CSR Excellence & Leadership Awards 2016. "Best Performing National
Financial Advisor Equity Broker' award at UTI CNBC TV 18 Financial Advisor Award 2014 – 2015.

23
 Chapter -2

RESEARCH METHODOLOGY

24
LITERATURE REVIEW

Abstract
The present paper investigates the performance of open-ended, growth-oriented equity schemes for the
period from April 2011 to March 2015 of transition economy. Daily closing NAV of different schemes have
been used to calculate the returns from the fund schemes. BSE-sensex has been used for market portfolio.
The historical performance of the selected schemes were evaluated on the basis of Sharpe, Treynor, and
Jensen’s measure whose results will be useful for investors for taking better investment decisions. The study
revealed that 14 out of 30 mutual fund schemes had outperformed the benchmark return. The results also
showed that some of the schemes had underperformed; these schemes were facing the diversification
problem. In the study, the Sharpe ratio was positive for all schemes which showed that funds were providing
returns greater than risk free rate. Results of Jensen measure revealed that 19 out of 30 schemes were
showed positive alpha which indicated superior performance of the schemes.

Introduction

Mutual Fund is a trust that pools money from investors by selling shares of the fund like any other type of
company that sells stock to the public. The raised money is used in different securities like stocks, bonds,
money markets & commodities. Each mutual fund has common financial goal and the money is invested in
accordance with the objective. Fund is managed by a professional fund manager, who is responsible for
implementing a fund's investing strategy and managing its portfolio trading activities. Each investor in the
mutual fund participates proportionally (based upon the number of shares owned) in the gain or loss of the
fund. Any investor can invest minimum amount that is affordable and diversify their portfolio in different
sectors depending upon their interests and risks.

LITERATURE REVIEW
The present study deals with the review of literature on ‘Evaluating the Performance of Indian Mutual Fund
Schemes’. Review of some of the studies is presented in the following discussion.

A Study of performance of mutual fund has become more controversial. Conversely Rajesh Kumar, Rituraj
Chandrakar( 2012) evaluates the performance of 29 open-ended, growth-oriented equity schemes for the
period from April 2005 to March 2011 (six years) of transition economy. The study revealed that 14 out of
29 (48.28 percent) sample mutual fund schemes had outperformed the benchmark return. The results also
25
showed that some of the schemes had underperformed; these schemes were facing the diversification
problem. Dr.R.Narayanasamy, v.rathnamani, (2013) evaluate the performance of selected equity large cap
mutual funds schemes in terms of risk- return relationship . The performance analyse of the selected five
equity are large cap funds. The study may conclude that all the funds have performed well in the high
volatile market movement expect Reliance vision. Dr.S.Narayanrao,(2003) evaluate the performance
evaluation of Indian mutual funds in a bear market is carried out through relative performance index. The

results of performance measures suggest that most of the mutual fund schemes in the sample of 58 were able
to satisfied investor’s expectations by giving excess returns over expected returns based on both low-grade
for systematic risk and total risk. Suchitashukla (2015) analyzed the financial performance in terms of risk –

return relationship of selected mutual fund schemes (5 categories ×3 mutual fund= 15 schemes). The study
reveals that Overall the mutual funds have given better returns than the benchmark in the above period
subject to infrastructure fund in year 2013. Sahiljain ( 2012) evaluate the performance of equity based
mutual funds. A total of 45 schemes offered by 2 private sector companies and 2 public sector companies,
have been studied over the period April 1997 to April 2012 (15 years). The analysis has been made using the
risk-return relationship and Capital Asset Pricing Model (CAPM). The overall analysis finds that HDFC and
ICICI have been the best performers, UTI an average performer and LIC the worst performer which gave
below- expected returns on the risk-return relationship. Dr.Shriprakashsoni, Dr.Deepalibankapue,
Dr.maheshbhutada, (2015)comparative analysis of mutual fund schemes available at kotak mutual fund and
HDFC mutual fund. The study conclude that Kotak Mutual Fund schemes are more destructive in Large Cap
Equity schemes and HDFC Mutual Fund schemes are more destructive in Mid Cap Equity schemes where as
both the companies schemes are very well managed in debt market. Kotak Select Focus is the best scheme in
Large cap Equity, HDFC Mid-Cap is the best scheme in Mid-Cap sector and HDFC Balanced Fund is the
best scheme in Balanced Fund for investment. Dr.R.karrupasamy,Mrs.v.vanaja, (2014) This study reveals
that majority of the public sector schemes selected for the study outperformed the category average and also
benchmark indices and majority of the diversified schemes performed well on the basis of performance
index. Dr.Vikaskumar (2011) analysed of the open ended schemes shows that out of twenty five schemes
namely Reliance Growth Fund, Reliance Vision Fund, ICICI Prudential Tax Plan, HDFC Top 200 and Birla
Sun Life Equity Fund, performs better in comparison to benchmark index BSE-100 index in terms of
monthly average return and risk involved in these schemes less then benchmark.
Kalpesh.p.prajapati,mahesh.k.patel( 2012) It evaluate the Indian mutual funds is carried out through relative
performance index, risk-return analysis, Sharp's measure, Jensen's measure, and Fama's measure. All
selected mutual fund companies have positive return during 2007 to 2011. HDFC and Reliance mutual fund
have performed well as compared to the Sensex return. ICICI prudential and UTI Mutual fund has lower
level of risk compare to HDFC and Reliance mutual fund. Tej singh,priyanka( 2014) analysed the private
sector of mutual funds are gaining more in terms of scale of mobilization of funds compared to that of public
sector mutual funds. The study reveals that the private sector mutual funds are gaining more in terms of scale
of mobilization of funds compared to that of public sector. The gap is reaching up to 81 percent in 2003-04
from 31 percent in 1998-99 and finally settled at 54 percent in 2009-10

26
  OBJECTIVE OF THE STUDY

The purpose of research is to discover answers to questions through the application of scientific procedures.
The main aim of research is to find out the truth which is hidden and which has not been discovered as yet.
The main objectives are given below:

 To find out how many people(existing clients of IIFL) are know about the systematic investment
planning
 To know how much they have covered their self( Term plan)
 To know how much they have knowledge about IIFL mobile application.

LIMITATION OF THE STUDY

1. Personal Bias:
People may have personal bias towards particular investment option so they may not give correct
information and due to which conclusion may be derived.

2. Time Limit:
The time duration of the research is short that’s why the information is not covered fully.

3. Area:
The area was limited to vadodara city only, so we cannot know the problem or any issue outside the
city.

4. Sample Size:
The last limitation is Sample size, taken by us is of 50 only; due to which we may not get the proper results.

RESEARCH METHODOLOGY

Research means search for knowledge through objective and systematic method of finding solution to a
problem. The systematic approach concerning generalization and the formulation of a theory is also a
research. Some people consider research as a movement, a movement from the known to unknown. It is
actually a voyage of discovery. Research is an academic activity and as such the term should be used in
technical sense. According to Clifford Woody research comprises defining and redefining problems,
formulating hypothesis or suggested solutions; collecting organizing and evaluating data; making deductions

27
and reaching conclusions; and at last carefully testing the conclusions to determine whether they fit the
formulating.

To achieve the research objectives, following methodology was undertaken.

- survey was carried out to find out understanding of clients regarding systematic investment planning
and term plans.
- -information was also collected through discussion with clients of organization.

RESEARCH DESIGN

Exploratory research study should concern in three different methods such as about the survey of concerning
literature, the experience survey, and the analysis of insight Stimulating example.

Here the research design is exploratory research design. The major emphasis of exploratory research is on
the discovery of ideas and insights. The main purpose of such Study is that it gives more precise and
accurate result relating to problem. The purpose of this design is to extract new insight in to the problem.
Here the research study will need to adopt flexibility and ingenuity.

RESEARCH INSTRUMENT

Questionnaire

It is instrument used in collecting primary data. Questionnaire consists of set of questions Presented to
resplendence for their answer. Here the instrument was questionnaire and data was collected through
schedule method.

Data collection

Source of information is depending upon nature of research and requirement of Information sources may be
primary or secondary data sources. Primary data was collected through schedule Secondary data was
collected through reading of reports, past performance records, Magazines and searching sites.

28
 PRIMARY DATA

The data which is collected directly from the respondent to the base of knowledge and belief of such
research are called primary data.

SECONDARY DATA

When data are collected and compelled from the published nature or any other’s primary data is called
secondary data. So far as our research is concerned, we have not collected any information from any sources.
So, we have not used secondary data for our research.

Sampling plan:

1. Target population: the target population of this study is consisting of clients of the organization
2. Sampling unit: clients of the company
3. Sample size: 50 clients of the organization.
4. Sampling method: simple random sampling

Format of questionnaire

FINANCIAL AWARENESS PROGRAM

CLIENT CODE :
CONTACT NO :
RM DETAILS :
TRAINEE NAME :

1 SIP
* DO YOU KNOW ABOUT FINANCIAL PLANNING? Y/N
DO YOU KNOW, HOW SIP CAN FULLFILL YOUR FUTURE Y/N
*
FINANCIAL REQUIREMENT?
WHAT IS YOUR FINANCIAL REQUIREMENT AFTER 10
*
YEARS? _________
* WHAT IS YOUR CURRENT SIP AMOUNT? _________

29
2 TERM PLAN
HOW CAN YOU COVER YOUR FUTURE FINANCIAL
*
UNCERTAINTY? _________
* HOWMUCH YOU HAVE COVERED YOURSELF? _________

3 APPLICATION SUPPORT
* YOU HAVE KNOWLWDGE ABOUT IIFL APP.? Y/N
* HAVE YOU USED IIFL APP.? Y/N

Data Analysis
Q.1) DO YOU KNOW ABOUT FINANCIAL PLANNING?

Yes 90
No 10

Financial planning

YES
NO

30
Q.2) DO YOU KNOW, HOW SIP CAN FULLFILL YOUR FUTURE FINANCIAL REQUIREMENT?

Yes 80
No 20

Syastamatic investment planning

YES
NO

31
Q.3) WHAT IS YOUR FINANCIAL REQUIREMENT AFTER 10 YEARS?

10,00,000 20
20,00,000 35
30,00,000 15
Above 50,00,000 30

Financial requirements

10,00,000
20,00,000
30,00,000
Above 50,00,000

32
Q.4) WHAT IS YOUR CURRENT SIP AMOUNT?

1,500 20
2,500 25
5,000 30
Above 10,000 25

SIP Amount

1,500
2,500
5,000
Above 10,000

33
Q.5) HOWMUCH YOU HAVE COVERED YOURSELF?

5,00,000 40
10,00,000 30
25,00,000 20
Above 25,00,000 10

5,00,000
10,00,000
25,00,000
Above 25,00,000

34
Q.6) YOU HAVE KNOWLWDGE ABOUT IIFL APP?

Yes 80
NO 20

About IIFL app

YES
NO

35
Q,7) HAVE YOU USED IIFL APP.?

Yes 60
No 40

Usage of IIFL app

YES
NO

36
37
38
 Chapter-4
Company profile

39
IIFL was founded on Oct 17, 1995 by Nirmal Jain , a 1986 graduate from University of Mumbai and an
alumnus of Indian Institute of Management, Ahmedabad. Jain is among the few successful entrepreneurs
post the economic liberalisation era in India ushered by PV Narasimha Rao.[8] Jain was previously employed
with Hindustan Lever Limited. The company was founded as Probity Research and Services Private Limited
which provided research on the Indian economy, businesses and corporates. The name was later changed to
India Infoline Limited.[9]

A few years into the business, the organisation found itself with clients which included research
organisations, banks and corporates.[9] They then began launching their research products to become more
noticeable in the market. In the meanwhile, the dotcom revolution was beginning to take place in India. The
website was created in 1999.

Taking the business one step ahead this group of consultants opened a trading portal – www.5paisa.com –in
2000 thus moved into the business of being a full service broking agency. During this time they widened
their distribution network.[10][11]

In 2001, the Indian dotcom industry saw a downfall. During this time, sustaining became tough. The
organisation then decided to tie-up with leading Life Insurance company ICICI Prudential, thus putting to
use its distribution network and becoming India's first corporate agent for insurance.[9]

Today, IIFL Holdings Limited (Bloomberg Code: IIFL IN,[12] NSE: IIFL,[13] BSE: 532636[14]) is India’s
leading integrated financial services group with diverse operating businesses, mainly Non Banking and
Housing Finance, Wealth and Asset Management, Broking, Financial Product Distribution, Investment
Banking, Institutional Equities, Realty and Property Advisory Services.[15][16]

IIFL Holdings has a consolidated net-worth of over Rs 45 billion; global presence in Canada, United States,
UK, Singapore, Hong Kong, Switzerland, Mauritius, and UAE; An employee workforce of over 10,500, a
strong network of over 2,250 service locations spread across India, over Rs 233 billion loan assets under
management; over Rs 1,250 bn wealth assets under advice, management and distribution; over 500 stocks
under research and more than 300 of the world’s top institutional investors relying on IIFL's research.

Awards and recognition

IIFL has been awarded by Euromoney for the Best Private Banking Services Overall in India for 2017.[20] It
has also been adjudged as the Best Private Bank in India at the Global Finance Best Private Bank Awards in
2017.[21]

 Euromoney awards IIFL for Best Private Banking Services - India, 2017.[22]
 ET NOW - Dealing Room Heroes, 2017

40
 CHAPTER 6

RESULTS, FINDINGS AND CONCLUSION

In that we have found the following information by doing the analysis.

 All the clients of IIFL had the knowledge about the financial planning .
 86% of all the clients are aware about the SIP(Systematic Investment Plan)
 There are 73% of the clients who are aware about the Term Plan .
 Nearly 80% of the clients are 60+ in age and their main focus is on retirement planning.
 As the 80% of the clients are aged 60+ so there are less persons who are using IIFL application.
 After anylisng all this things we found that the financial awareness of the clients of the IIFL are
very good.

Conclusion

The company IIFL is doing great job by providing the excellent financial services to their clients.
During this summer internship we learn how to communicate with the clients, how to undertake a
research, what is an IPO and how to fill the form of IPO of any company, and also something about
the share markets.

41
 Bibliography
1. IIFL Annual Report 2016" (PDF). indiainfoline.com. Retrieved 20 March 2017.
2. Jump up^ "Nirmal Jain Profile". www.economictimes.com. Retrieved 20 March 2017.
3. Jump up^ "Nirmal Jain Chairman/Founder IIFL Profile". www.bloomberg.com. Retrieved 20 March 2017.
4. Jump up^ "The rise of Indian financial conglomerates". www.livemint.com. Retrieved 20 March 2017.
5. Jump up^ "What makes investors trust their money with these 5 financial supermarkets of India".
www.economictimes.com. Retrieved 20 March 2017.
6. Jump up^ http://economictimes.indiatimes.com/iifl-holdings-ltd/infocompanyhistory/companyid-13033.cms
7. Jump up^ "From IIM to Dalal Street: A Tale of Two Batchmates, Rasheesh Shah and Nirmal Jain".
www.economictimes.com. Retrieved 20 March 2017.
8. Jump up^ http://economictimes.indiatimes.com/news/companies-a-z/corporate-trends/what-makes-investors-trust-
their-money-with-these-5-financial-supermarkets-of-india/articleshow/54321160.cms
9. Jump up^ http://economictimes.indiatimes.com/news/companies-a-z/corporate-trends/what-makes-investors-trust-
their-money-with-these-5-financial-supermarkets-of-india/articleshow/54321160.cms
10. Jump up^ http://economictimes.indiatimes.com/news/brandwire/banking-finance/finance/5paisa-com-redefines-
online-investments-with-innovative-offering-in-discount-broking-mutual-funds-and-
insurance/articleshow/53399943.cms

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