ORGANIZATIONAL STUDY AT SUNSHARE INVESTMENTS Pvt.

Ltd

A Summer Training Report submitted to the SRM University in partial

fulfillment of the requirements for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

Guddi Kumari (Reg. No.RA1752001020043)

Under the guidance of

Dr. ARULMOLI, (Faculty Guide)

Mr.PRAKASH. V, PROJECT MANAGER (Industry Guide)

SRM Ramapuram B-School

SRM University

Chennai – 89

AUGUST 2018

4
 Certificate

This is to certify that the Summer Training Report entitled

“ ORGANIZATIONAL STUDY AT SUNSHARE INVESTMENTS”, in partial

fulfillment of the requirements for the award of the Degree of Master of Business
Administration is a record of original training undergone by Ms.Guddi Kumari
(Reg. No.RA1752001020043) during the year 2017 – 2019 of his study in the
SRM school of management , SRM institute of science and technology,
Ramapuram Campus under my supervision and the report has not formed the
basis for the award of any Degree/Fellowship or other similar title to any
candidate of any University.

Place: Chennai – 89 Signature of Guide

Date: Dr. ARULMOLI,

Assistant Professor (OG)
SRM School of Management
SRM institute of science and technology,
Chennai - 89

Countersigned

Head of the Department

Dr. C. Sundar, M.B.A., M.Phil ., Ph.D .,
Professor & Head

Submitted to the SRM School of management, SRM Institute of Science and

Technology,(Ramapuram Campus) for the examin-ation held on_____________

INTERNAL EXAMINER EXTERNAL EXAMINER

4
 DECLARATION

I, Guddi Kumari, hereby declare that the Summer Training Report, entitled

“ORGANIZATIONAL STUDY AT SUNSHARE INVESTMENTS” ,

submitted to the SRM Institute of Science and Technology, in partial fulfillment
of the requirements for the award of the Degree of Master of Business
Administration is a record of original training undergone by me during the period
June – July 2018 under the supervision and guidance of Dr. ARULMOLI,
Assistant Professor (OG), SRM School of Management, SRM Institute of
Science and Technology, Ramapuram Campus and it has not formed the basis for
the award of any Degree/Fellowship or other similar title to any candidate of any
University.

Place: Chennai – 89 Signature of the Student

Date:

4
 ACKNOWLEDGEMENT

First and foremost, I offer my sincerest gratitude to our Chancellor, SRM

Institute of Science and Technology, for his academic support and the facilities
provided to carry out the project work at the Institute. His wide vision and
concern for students have been inspirational.
I wish to express my profound gratitude to my venerable Chairman, SRM
Group of Institutions-Ramapuram & Trichy Campuses, who offered me such a
huge opportunity, incredible Infrastructure and other support which made the
project work quite smooth.
I express my heartfelt thanks to our Dean, Faculty of Engineering and
Technology, SRM Institute of Science and Technology, Ramapuram Campus who
provided all facilities for carrying out this project.
I immensely thank to our Head of the Department Dr. C. Sundar, M.B.A.,
M.Phil ., Ph.D ., Professor & Head for his cordial support, valuable
information and guidance, which helped me in completing this task through
various stages. The blessing, help and guidance given by him time to time shall
carry me a long way in the journey of life on which I am about to embark.
I take this opportunity to express my profound gratitude and deep regards
to my guide Dr. Arulmoli, Assistant Professor (OG) for her exemplary guidance,
monitoring and constant encouragement throughout the course of this project.
I also take this opportunity to express a deep sense of gratitude to Mr.
Prakash, -------Project Manager HR, for his cordial support, valuable
information and guidance, which helped me in completing this task through
various stages. I owe my wholehearted thanks and appreciation to the entire staff
of the company for their cooperation and assistance during the course of my
project.
I thank God Almighty for showering his perennial blessing on me for
giving me the courage to pursue this project work successfully. I owe a lot to my
parents, who encouraged and helped me at every stage of my personal and
academic life, and longed to see this achievement come true.
Guddi Kumari

4
 TABLE OF CONTENTS

CHAPTER PAGE
CHAPTERS
NO NO
ACKNOWLEDGEMENT 4-5
I 1.1 INTRODUCTION 6-20
1.2 NEED FOR THE STUDY 21
1.3 SCOPE OF THE STUDY 21
1.4 OBJECTIVES 22

II 2.2 COMPANY PROFILE 23-33

2.3 INDUSTRY PROFILE 34-40

III DEPARTMENTS 41-48

IV FINDINGS 49
V SUGGESTIONS 50
VI CONCLUSION 51

CHAPTER 1

4
1.1 INTRODUCTION

INVESTMENT AN OVERVIEW:

Investment is the employment of fund with the aim of achieving additional

income or growth in value. The essential quality of an investment is that it
involves ‘waiting’ for a reward. It involves the commitment of resources which
have been saved or put away from current consumption in the hope that since
benefit will accrue in future.

Investment is the allocation of monetary resources to assets that are

expected to yield some gain or positive return over a given period of time. These
assets range from safe investment to risky investments. Investment in this form is
called as ‘Financial Investments’.

Why should one invest?

One needs to invest to:

 Earn return on your idle resources,

 Generate a specified sum of money for a specific goal in life
 Make a provision for an uncertain future

One of the important reasons why one needs to invest wisely is to meet the
cost of Inflation. Inflation is the rate at which the cost of living increases. The cost
of living is simply what it costs to buy the goods and services you need to live.
Inflation causes money to lose value because it will not buy the same amount of a
good or a service in the future as it does now or did in the past. The aim of
investments should be to provide a return above the inflation rate to ensure that
the investment does not decrease in value.

4
FACTORS INFLUENCING INVESTMENT:

1. Increasing rate of taxation.

2. High interest rate.
3. High rate of inflation
TYPES OF INVESTMENTS:

1. Short term investment

2. Long term investments

CLASSIFICATION OF INVESTMENTS

SHORT TERM LONG TERM

Savings Bank Account Post Office Savings

Money Market or Liquid Funds Public Provident

Fund

Fixed Deposits with Banks

CompanyFixed,Deposits

Securities[Shares,Bo
nds]

EQUITY INVESTMENT AN OVERVIEW:

4
 Equity investment generally refers to the buying and holding of shares of
stocks on the stock market by individual and funds in anticipation of income from
dividend and capital gain as the value of the stock rises. It also sometimes refers
to the acquisition of equity participation in a private company or a company being
created or newly created. In simple terms, equity share is the total equity capital
of a company is divided into equal units of small denominations, each called a
share.

Why do companies need to issue shares to the public?

Most companies are usually started privately by their promoter(s).

However, the promoters’ capital and the borrowings from banks and financial
institutions may not be sufficient for setting up or running the business over a
long term. So companies invite the public to contribute towards the equity and
issue shares to individual investors. The way to invite share capital from the
public is through a ‘Public Issue’. Simply stated, a public issue is an offer to the
public to subscribe to the share capital of a company. Once this is done, the
company allots shares to the applicants as per the prescribed rules and regulations
laid down by SEBI.

Why should one invest in equities in particular?

When a person buys a share of a company he becomes a shareholder in that

company. Shares are also known as Equities. Equities have the potential to
increase in value over time. It also provides your portfolio with the growth
necessary to reach your long term investment goals. Research studies have proved
that the equities have outperformed most other forms of investments in the long
term.

4
This may be illustrated with the help of following examples:

a) Over a 15 year period between 1990 to 2005, Nifty has given an annualised
return of 17%.
b) In the last 15-20 years, the average return from equity was about 16 per cent
pa.
c) Equities are considered the most challenging and the rewarding, when
compared to other investment options.
d) Research studies have proved that investments in some shares with a longer
tenure of investment have yielded far superior returns than any other
investment.
However, this does not mean all equity investments would guarantee
similar high returns. Equities are high risk investments. The investor needs to
study them

carefully before investing.

What has been the average return on Equities in India?

Since 1990 till date, Indian stock market has returned about 17% to
investors on an average in terms of increase in share prices or capital appreciation
annually. Besides, that on average stocks have paid 1.5% dividend annually.
Dividend is a percentage of the face value of a share that a company returns to its
shareholders from its annual profits. Compared to 37 most other forms of
investments, investing in equity shares offers the

highest rate of return, if invested over a longer duration.

Which are the factors that influence the price of a stock?

4
Broadly there are two factors:

(1) Stock specific and

(2) Market specific.

The stock-specific factor is related to people’s expectations about the

company, its future earnings capacity, financial health and management, level of
technology and marketing skills.

The market specific factor is influenced by the investor’s sentiment

towards the stock market as a whole. This factor depends on the environment
rather than the performance of any particular company. Events favorable to an
economy, political or regulatory environment like high economic growth, friendly
budget, stable government etc. can fuel euphoria in the investors, resulting in a
boom in the market. On the other hand, unfavorable events like war, economic
crisis, communal riots, minority government etc. depress the market irrespective
of certain companies performing well. However, the effect of market-specific
factor is generally short-term. Despite ups and downs, price of a stock in the long
run gets stabilized based on the stock specific factors. Therefore, a prudent advice
to all investors is to analyse and invest and not speculate in shares.

What is meant by the terms Growth Stock / Value Stock?

Growth Stocks:

In the investment world we come across terms such as Growth stocks,

Value stocks etc. Companies, whose potential for growth in sales and earnings are
excellent, are growing faster than other companies in the market or other stocks in
the same industry are called the Growth Stocks. These companies usually pay

4
little or no dividends and instead prefer to reinvest their profits in their business
for further expansions.

Value Stocks:

The task here is to look for stocks that have been overlooked by other
investors and which may have a ‘hidden value’. These companies may have been
beaten down in price because of some bad event, or may be in an industry that's
not fancied by most investors. However, even a company that has seen its stock
price decline still has assets to its name - buildings, real estate, inventories,
subsidiaries, and so on. Many of these assets still have value, yet that value may
not be reflected in the stock's price. Investors look to buy stocks that are
undervalued, and then hold those stocks until the rest of the market realizes the
real value of the company's assets.

How can one acquire equity shares?

The investor can acquire equity share either by the following two ways,

1. Primary market
2. Secondary market
You may subscribe to issues made by corporates in the primary market. In the
primary market, resources are mobilised by the corporates through fresh public
issues (IPOs) or through private placements. Alternately, you may purchase shares
from the secondary market. To buy and sell securities you should approach a
SEBI registered trading member (broker) of a recognized stock exchange.

 PRIMARY MARKET:

4
 The primary market provides the channel for sale of new securities.
Primary

market provides opportunity to issuers of securities; Government as well as

Corporates, to raise resources to meet their requirements of investment and/or
discharge some obligation. They may issue the securities at face value, or at a
discount/premium and these securities may take a variety of forms such as equity,
debt etc. They may issue the securities in domestic market and/or international
market.

 SECONDARY MARKET:
Secondary market refers to a market where securities are traded after
being initially offered to the public in the primary market and/or listed on the
Stock Exchange. Majority of the trading is done in the secondary market.
Secondary market comprises of equity markets and the debt markets.

RISK:

"Risk" is the investor's four-letter word. Everybody is risk-averse. Risk can

be defined as the chance that the expected or prospective advantage, gain, profit
or return may not materialize; that the actual outcome of investment may be less
than the expected outcome. Risk is composed of demand that brings in variation
in return of income. The main force contributing to risk is price.

The variance and standard deviations of return serve as the alternative

statistical measures of the risk of the security in absolute sense. Similarly
covariance measures the risk of the security relative to the other securities in a
portfolio.

TYPES OF RISK:

4
1] Systematic risk and

2] Unsystematic risk

CLASSIFICATION OF RISK

Systematic risk Unsystematic

risk

Market risk or Economic risk Business risk

Interest rate risk Financial risk

Purchase power risk

 SYSTEMATIC RISK:
Systematic risk is non-diversifiable and is associated with securities
market as well as the economy, sociological, political and legal considerations of
the price of all securities in the economy. The effect of these factors is to put
pressure on all securities in such a way that the price of all stocks will move in the
same direction. The following are the factors that influence systematic risk,

MARKET RISK:

4
 Market risk is referred to as stock variable due to change in investor’s
attitude and expectations. The investor’s reaction towards tangible events is the
chief cause affecting ‘market risk.’ Market risks cannot be eliminated while
financial risk can be reduced. Market risk includes such factors as business
recessions, depressions and long-run changes in consumption in the economy.

INTERSET RATE RISK:

The price of all securities rise or fall depending on the change in interest
rates, the longer the maturity period of a security, the higher the yield on an
investment and lower the fluctuations in prices.

Interest rates continuously change for bond, preference stock and equity
stocks. Interest rate risk can be reduced by diversifying in various kinds of
securities and also buying securities of different maturity dates.

PURCHASE POWER RISK:

Purchasing power risk is also known as inflation risk. This risk arises out if
change in the prices if goods and services and technically it covers both inflation
and deflation period. Therefore, in India, purchasing power risk is associated with
inflation and rising price in the economy.

 UNSYSTEMATIC RISK:
Unsystematic risk is unique to a firm of industry. It dose not affect an
average investor. Unsystematic risk is caused by factors like labour strike,
irregular disorganized management policies and consumer preference. These
factors are independent of the price mechanism operating in the securities market.
The following are the factors that influence unsystematic risk,

4
BUSINESS RISK:

Ever corporate organization has its own objectives and goals and aims at a
particular gross profit and operating income and also expects to provide a certain
level of dividend income to its shareholders. It also hopes to plough back some
profit.

Business risk is also associated with risks directly affecting the internal
environment of the firm and those if circumstance beyond its control. The former
is classified as internal business risk and the latter as external business risk, within
these two broad categories of risk, the firm operations.

FINANCIAL RISK:

Financial risk in a company is associated with the method through which it

plans its financial structure. If the capital structure of a company tends to make
earnings unstable, the company may fail financial. How a company rises funds to
finance its needs and growth will have an impact on its future earnings and
consequently on the stability of earnings. Debt financing provides a low cost
source of funds to a company, at the same time providing financial leverage for
the common stock holders. As long as the earnings of the company are higher that
the cost of barrowed funds the earnings per share of common stock are increased.

TOOLS TO MEASURE RISK:

 Beta
 Alpha
 Standard deviation and variance
 Covariance

BETA:

4
 The most important part of the equation is β of beta. It is used to describe
the relationship between the stock’s return and market index’s return. The
percentages changes in the price of the stock are regressed against the percentage
changes in the price of a market index. A 0.5 beta indicates that the market index
changes of 1% was reflected by a 0.5% price change in stocks. Similarly, a 1.5%
beta would reflect that whenever the market index rose or fell by 1%, the stock
would rise and fall by 1.5%.

Beta is referred to as systematic risk to the market and +E the unsystematic

risk. Beta is useful piece of information both for individual stock as well as
portfolios, but as a measure of risk; it is better used in the analysis of portfolios.
Beta value can be calculated by using the following formula,

N∑XY - ∑X∑y
β= --------------------------

N∑X2 – (∑X)2

ALPHA:

The size of the alpha exhibits the stock’s unsystematic return and its
average return independent of the market’s return. If alpha gives a positive value,
it is a healthy sign but alpha’s expected value is zero.

ALPHA (α) = Y – (β * x)

4
STANDARD DEVIATION AND VARIANCE:

The most useful method for calculating variability is the standard deviation and
variance. The standard deviation is a statistical measure of the dispersion or
uncertainty in a random variable. Risk arises out of variability. Standard deviation
measures risk for both individual assets and for portfolio. It measures the total
variation return about expected return. The standard deviation can be calculated
by using the following formula,

Standard Deviation (σ) = √∑ Pі (Ri-E(R)) ²

The variance is a somewhat abstract measure of the variability in a set of data.

Unlike the variability the standard deviation can be easily conceptualized by
plotting it along with the individual points in the set. It is easy to visualize the
standard deviation in this way along with the data set.

Variance (σ²) = ∑ Pi (R-E(R) ²)

CO-VARIANCE:

While standard deviation is an excellent measure for calculation o risk of

individual stocks, it has limitations as a measure of a total portfolio. With the
correlation of risk if individual stocks, it has its limitation as a measure of a total
portfolio. With the correlation, the co-variance approach should also be
considered when there are two or three stocks on the portfolio. Co-variance can be
used to achieve the highest portfolio expected return for a pre-determined
portfolio variance level or the lowest portfolio return.

4
 An individual security’s expected return and variance express return and
risk for portfolios of stocks, the expected return is the weighted average of the
return on the individual securities.

RETURN:

A major purpose of investment is to set a return or income on the funds

investment. On a bond an investor expects to receive interest. On a stock,
dividends may be anticipated. The investor may expect capital gains from some
investments and rental income from house property.

Return is the amount or rate of produce, proceeds, gain, fruit and profit
which accrues to an economic agent from an undertaking or enterprise or
investment. It is a reward for and a motivating force behind investment, the
objective of which is usually to maximize return.

Return on a typical investment has to components; the basic one which is

the periodic cash or income receipts, either inters toe dividend; and the other
which is the appreciation or depreciation in the price of value of the asset, called
the capital gain or the capital loss. The capital gain is the difference between the
purchase price of the asset and the price at which it can be or is sold. The income
component is usually but not necessarily received in cash viz., stock dividend.
The total return on an investment thus can be defines as income plus/minus
appreciation/depreciation.

4
TYPES OF RETURN:

1. Expected return
2. Rate of return
3. Holding period return

 EXPECTED RETURN:
The expected rate of return is the weighted average of all possible return
multiplied by their respective probabilities. Expected return is the estimation of
the value of an investment, including the change in price and any payments or
dividends, calculated from a probability distribution curve of all possible rates of
return. In general, if an asset is risky, the expected return will be the risk-free rate
of return plus a certain risk premium, also called expected value. The average of a
probability distribution of possible returns, calculated by using the following
formula:

Expected Return:

 RATE OF RETURN :

In finance, rate of return (ROR) or return on investment (ROI) is the ratio

of money gained or lost on an investment relative to the amount of money
invested. The amount of money gained or lost may be referred to as interest,
profit/loss, gain/loss, or net income/loss. The money invested may be referred to
as the asset, capital, principal, or the cost basis of the investment.

ROI is also known as rate of profit, rate of return or return. ROI is the
return on a past or current investment, or the estimated return on a future

4
investment. ROI is usually given as a percent rather than decimal value...
However, ROI is most often stated as an annual or annualized rate of return, and it
is most often stated for a calendar or fiscal year Rate of return for the given period
is calculated by using the formula,

Annual income + (Ending price – Beginning price)

Rate of return = --------------------------------------------------------------

Beginning price

 HOLDING PERIOD RETURN:

Holding period yield (HYP) measures the total return an investment during
a given or designing time period in which the asset is held by the investor. It is to
be noted that HYP dose not mean that the security is actually sold and the gain or
loss is actually realized by the investor. The concept of HYP is applicable whether
one is measuring the realized return or estimated the future return.

4
1.2 COMPANY PROFILE

Sunshare investments are one of growing financial institutions, offering complete

financial solutions that encompass every sphere of life. From stock broking, to
mutual funds, to life insurance, to investment banking, the group caters to the
financial needs of individuals and corporates. The group has employs around 50
employees across its various businesses, servicing around 340 customer accounts
through a distribution network of 2 branches. Their 5 years of existence offering
investment products across asset classes with varying risk parameters that cater to
needs of various customer segments, have enabled us to garner trust of over 340
investors.

SUNSHARE is committed to provide its customer with best innovative stock

trading system at the affordable price, they believe in quality service, accuracy of
their software for their Successful trading in the present competitive market.

They strongly believe in applying Knowledge of technical analysis with use of

technology. Drives them to unlimited success 90% of the traders strongly follow
their instincts and lose their harden money giving their Money to someone.

4
Tracking your Portfolio: -
Just investing money is not enough, you have to monitor your portfolio to ensure
you money works as hard as you to build a robust financial portfolio. You can use
our portfolio tracker to monitor your entire financial portfolio, which
encompasses various asset classes. You can also make a watchlist of stocks and
enrol for SMS alerts, which will help you track the markets closer to make a
timely investment decision.

Transparency: -
We empower you to take the right decisions and handle your own portfolio.
Backed by our trusted pedigree, it is our constant endeavour to provide services in
a transparent manner. We believe in offering high quality investment services in a
cost effective manner to achieve your financial goals

VISION:

Their vision is to be a responsible player in the Indian mutual fund space. The
company strive hard to deliver consistent performance over the benchmark across
all their products, thereby creating customer satisfaction.

CODE OF CONDUCT

 will act fairly with all stakeholders

 comply with all applicable laws, rules and regulations;
 act in good faith, responsibly, with due care, competence and diligence,
without allowing their independent judgment to be subordinated;
 not use Company’s property, or position for personal gain;
 disclose potential conflicts of interest that they may have regarding any
matters that may come before the Board, and abstain from discussion and
voting on any matter in which the Director has or may have a conflict of
interest;

4
  respect the confidentiality of information relating to the affairs of the
Company acquired in the course of their service as Directors, senior
management personnel except when authorized or legally required to
disclose such information;
 not use confidential information acquired in the course of their service as
Directors, senior management personnel for their personal advantage or in
their role as Directors or any other role in any other Company outside the
Group;
 help create and maintain a culture of high ethical standards and
commitment to compliance;

VIOLATIONS OF THE CODE

The Company will take appropriate action against any Director or Senior
Management Personnel whose actions are found to violate the Code or any other
policy of the Company. Where the Company has suffered a loss, it may pursue its
remedies against the individuals or entities responsible. Where laws have been
violated, the Company will cooperate fully with the appropriate authorities.

CORPORATE PHILOSOPHY:

We have always believed that your success is our success. It's the only truth of
every business. And we have built our foundation around this philosophy. Every
endeavor at SUNSHARE is to ensure success - success of its clients, employees,
partners, investors and of the society at large. And we have been doing this since
2008

We consider ourselves as a Services & Solutions company and not a financial

product disseminator. We understand that needs differ, and hence, no one size fits
all. Our ultimate aim is to delight the people, whose lives we touch and every
fraction of our existence works towards achieving this, every single second.

4
CORPORATE STRUTURE

PRODUCTS AND SERVICES:

1. Online share trading

2. Real Estate Advisor
3. Asset Management
4. Insurance
5. Wealth Management
6. Investment Banking
7. National Products Distribution

PRODUCTS:

ONLINE SHARE TRADING:

The online trading website provides the customers a seamless internet trading
experience through its various useful features such as streaming stock quotes,
online payment gateways, portfolio tracker, extensive research reports, online

4
IPO, live market news & real time market statistics. The customers can find all
their relevant account and trading details online and make a more informed
decision for profitable trading.

Tips to Investors

Picking Stocks
Picking stocks is all about finding opportunities. This is where most
inexperienced traders fail because they go and look for stocks of well-known
companies that they think they should trade. The reality is that big name stocks
like Apple or Google or IBM offer very little opportunity to the individual trader
(although it could under certain circumstances). A good opportunity is a stock that
has big potential for growth. Often these are companies in whole new industries –
companies that you’ve never even heard of before.

Knowing When To Buy

Once you’ve found a good stock pick, you need to know when to enter the trade.
It’s simple: you need to buy the share at the lowest possible price to maximize
your profit. If you enter the trade too soon you might pay too much. If you enter
the trade too late it might be too expensive. Great traders are very skilled at
reading stock signals and evaluating when to buy a stock.

Knowing When To Sell

Knowing when to sell is probably the most important part of being successful at
trading shares online. If you sell too soon you will miss out on potential profits. If
you sell too late you might lose money. One of the biggest mistakes I see novice
traders make is that they hold on to a stock “hoping” that it will go back up so
they can recoup their losses. Not only does this lock up your trading capital but it
is sure to give you some sleepless night.
With the advent of so-called “artificial intelligence” trading software, this process
has been automated to a large extent. To make informed decisions on whether a

4
 stock is a good opportunity and deciding when to buy and when to sell requires a
lot of research and interpreting a lot of graphs and data.

Artificial intelligence software like Stock Assault can interpret a lot of data for
you and make a much more informed decision that you will ever be able to make
through “manual” work. Off course you cannot afford to hand over your money to
a trading robot, but it sure does give you a big helping hand in making good
trading decisions.

MUTUAL FUND:

Investment in mutual funds offers the following advantages:-

 Diversification of portfolio: Since mutual funds invest in a bouquet of
instruments, they offer an effective means of diversification for the investor.
 Professional management: Mutual funds are an excellent means of
investment for people who do not have the time or the expertise to study the
markets in depth before making investment decisions. The funds are generally
managed by well-qualified fund managers, and it is always prudent to check the
fund manager’s background before investing in a fund.

 Low cost: A mutual fund unit is much less expensive than the individual
stocks in which the fund has invested. Thus, with a given amount of money, an
investor can buy more number of units of mutual funds than individual stocks.

 Tax Benefits: Investment in mutual funds offers several tax benefits. For
example, dividends received through mutual funds are exempt from tax, while
investment in certain types of mutual funds is deductible from the taxable income
to reduce the tax liability. Thus, mutual funds can be used as effective tools fortax
planning.

COMMODITY

SUNSHARE Commotrade equips you with reliable research, based on a technical

and fundamental study of all major commodities. It also continuously works

4
 towards recommending various trading strategies which you can use to enhance
your commodities trading experience.

When you choose to trade through SUNSHARE Commotrade, you not only
receive personalized service but enjoy the benefit of a delivery mechanism made
easy! SUNSHARE Commotrade is your veritable guide and gateway into the
world of commodities trading

Commodities' trading offers the following benefits:-

 Diversification of portfolio: Commodity trading offers a means for
diversification of portfolio for the investors, by offering exposure to an asset class
different from stock markets instruments such as equities, mutual funds and
bonds.
 Predictability: : Commodities pricing is largely based on the demand and
supply fundamentals for the commodity, and hence, becomes relatively easier to
predict.

 Leverage: Trading in commodities futures involves use of leverage

through margin which is maintained with the broker. Hence, large transactions can
be executed with lesser amount of cash in hand.

 Liquidity: Futures contracts in commonly traded commodities such as

gold, silver, crude oil and grains offer a high level of liquidity in the market.

DERIVATIVES:

Derivatives have traditionally been used by businesses to hedge against different

types of risks, and have been in existence for decades. With well-planned
strategies based on a thorough study of the markets, individual investors and
traders can earn handsome returns through derivatives trading.
Investment in derivatives has the following advantages:-
 Hedging against risk: Derivatives are used for hedging against risk in
price fluctuations of the underlying asset. Since the buy (or sell) price at delivery

4
 is specified in advance, the buyer/seller can protect his investment from deviation
in price trend.
 Lower costs: The investor needs to pay only for the contract, which is
usually much less than the price of the underlying asset, thus offering a benefit of
lower costs.

 Leverage: Trading in derivatives involves use of leverage through margin

that is maintained with the broker. Hence, lesser cash is required to be paid at the
time of trade.

SERVICES:

FINANCIAL PLANNING:

Financial Planning is the process of planning a person's investments and assets to

enable the person to attain his or her financial goals, keeping in mind the risk
profile of the person.

WEALTH MANAGEMENT

SUNSHARE helps you to systematically plan and execute financial strategies

based on an in-depth understanding of your needs, your appetite for risk and the
products that are available in the market.

We follow a three-step process for managing your wealth

Step 1 - Understanding your needs and goals

Different individuals have diverse needs and goals in life. The practice of wealth
management tries to ensure that your finances support these goals at every stage
of your life. So, our first step to developing your customized investment portfolio
is analyzing your needs and goals.
Step 2 - Executing investments
While channeling your finances towards achieving your goals, we take in to
account aspects like your cash flow requirements and your risk appetite. A right
balance is struck between investing in liquid assets and in medium and long term

4
investments. We suggest investment across various asset classes such as stocks
(equities), mutual funds, debt assets etc. in varying proportions, depending on
your profile. This helps in optimizing returns and ensuring risk mitigation through
a diversified portfolio.
Step 3 - Reviewing portfolio at regular intervals
With constant changes in the business and economic environment it is important
to review the portfolio from time to time and make necessary alterations
whenever necessary. This helps in aligning the portfolio to the investment
objective.

INVESTMENT BANKING:

SUNSHARE focuses on the middle market entrepreneurs, and provides them with
a complete range of solutions from strategic advisory services to capital raising, to
assist them in implementing their growth plans. We aim to spend adequate time
with the entrepreneurs and their team to understand their motivations, businesses
and strategy. SUNSHARE believes in a strong, relationship driven, long term
approach with all its clients, as corporates need time to execute their business
plans and it is imperative that in turbulent times the banker becomes a trusted
advisor and remains with them through the various phases of the business cycles
and is able to advise them on the best strategies at each appropriate stage in their
growth cycle.

To enable us to do this, we have put together an experienced team of

professionals who come with very strong relationships across the regulatory and
investor space and also have a deep understanding of the issues facing the mid
market corporates in these times, as they aim to become the large caps of
tomorrow. We have strong relationships across the spectrum of investors ranging
from marquee private equity funds, mutual funds, overseas institutional investors,
hedge funds, very high net worth investors as well as bankers.

INSURANCE:

4
Services And Value Proposition
Being an insurance broker, we cater to all the insurance needs of our clients and
provide technical expertise and value enhancement to our clients. Our list of
services includes:

 Life and non-life insurance:

 Risk management:
 Claim settlement:
 Policy reviewing:

1.3 INDUSTRY PROFILE

4
Stock exchanges to some extent play an important role as indicators, reflecting
the performance of the country's economic state of health. Stock market is a
place where securities are bought and sold. It is exposed to a high degree of
volatility; prices fluctuate within minutes and are determined by the demand and
supply of stocks at a given time. Stockbrokers are the ones who buy and sell
securities on behalf of individuals and institutions for some commission.

The Securities and Exchange Board of India (SEBI) is the authorized

body, which regulates the operations of stock exchanges, banks and other
financial institutions... With the view to improve, discipline and bring greater
transparency in this sector, constant efforts are being made and to a certain extent
improvements have been made. As the condition of capital markets are constantly
improving, it has started drawing attention of lot more people than before. On the
career related aspects, professionals have opportunities to choose from for a wide
range of jobs available in a number of organizations in this sector and one can
expect to have good times ahead of him.

Commodity market, organized traders' exchange in which

standardized, graded products are bought and sold. Worldwide, there are 48 major
commodity exchanges that trade over 96 commodities, ranging from wheat and
cotton to silver and oil. Most trading is done in futures contracts, that is,
agreements to deliver goods at a set time in the future for a price established at the
time of the agreement. A future trading allows both hedging to protect against
serious losses in a declining market and speculation for gain in a rising market.
For example, a seller may sign a contract agreeing to deliver grain in two months
at a set price. If the grain market declines at the end of two months, the seller will
still get the higher price quoted in the futures contract.

If the market rises, however, speculators buying grain stand to profit by

paying the lower contract price for the grain and reselling it at the higher market
price. Spot contracts, a less widely used form of trading, call for immediate

4
delivery of a specified commodity and are often used to obtain the goods
necessary to fulfill a futures contract. An independent U.S. regulatory agency, the
Commodity Futures Trading Commission was established in 1974 to regulate
commodity markets. In 1982, the Chicago Mercantile Exchange introduced a
futures contract for Standard & Poor's 500 U.S. companies that allows investors
to speculate on the future prices of those stocks. Trading of S&P 500 and other
financial futures has broken down some of the barriers that once separated stock,
bond, and commodity markets and made it easier for investors to hedge their
stock investments. Critics charge that the futures trading at the commodity
markets in Chicago have made stock prices more volatile. The Chicago Board of
Trade is the largest futures and options exchange in the United States, the largest
in the world is Eurex, an electronic European exchange.

Regulation of commodity markets

Cotton, kilowatt-hours of electricity, board feet of wood, long distance

minutes, royalty payments due on artists' works, and other products and services
have been traded on markets of varying scale, with varying degrees of success.
One issue that presents major difficulty for creators of such instruments is the
liability accruing to the purchaser:

Unless the product or service can be guaranteed or insured to be free of

liability based on where it came from and how it got to market, e.g. kilowatts
must come to market free from legitimate claims for smog death from coal
burning plants, wood must be free from claims that it comes from protected
forests, royalty payments must be free of claims of plagiarism or piracy, it
becomes impossible for sellers to guarantee a uniform delivery.

Generally, governments must provide a common regulatory or insurance

standard and some release of liability, or at least a backing of the insurers, before
a commodity market can begin trading. This is a major source of controversy in
for instance the energy market, where desirability of different kinds of power
generation varies drastically. In some markets, e.g. Toronto, Canada, surveys

4
established that customers would pay 10-15% more for energy that was not from
coal or nuclear, but strictly from renewable sources such as wind.
Spot trading

Spot trading is any transaction where delivery either takes place immediately, or
with a minimum lag between the trade and delivery due to technical constraints.
Spot trading normally involves visual inspection of the commodity or a sample of
the commodity, and is carried out in markets such as wholesale markets.
Commodity markets, on the other hand, require the existence of agreed standards
so that trades can be made without visual inspection.
Forward contracts

A forward contract is an agreement between two parties to exchange at some

fixed future date a given quantity of a commodity for a price defined today. The
fixed price today is known as the forward price.
Futures contracts

A futures contract has the same general features as a forward contract but is
transacted through a futures exchange. Commodity and Futures contracts are
based on what’s termed "Forward" Contracts. Early on these "forward" contracts
(agreements to buy now, pay and deliver later) were used as a way of getting
products from producer to the consumer. These typically were only for food and
agricultural Products. Forward contracts have evolved and have been standardized
into what we know today as futures contracts. Although more complex today,
early “Forward” contracts for example, were used for rice in seventeenth century
Japan.

Modern "forward", or futures agreements, began in Chicago in the 1840s, with

the appearance of the railroads. Chicago, being centrally located, emerged as the
hub between Midwestern farmers and producers and the east coast consumer
population centers.

4
Hedging

"Hedging", a common (and sometimes mandatory practice of farming

cooperatives, insures against a poor harvest by purchasing futures contracts in the
same commodity. If the cooperative has significantly less of its product to sell due
to weather or insects, it makes up for that loss with a profit on the markets, since
the overall supply of the crop is short everywhere that suffered the same
conditions

Whole developing nations may be especially vulnerable, and even their

currency tends to be tied to the price of those particular commodity items until it
manages to be a fully developed nation. For example, one could see the nominally
fiat money of Cuba as being tied to sugar prices, since a lack of hard currency
paying for sugar means less foreign goods per peso in Cuba itself. In effect, Cuba
needs a hedge against a drop in sugar prices, if it wishes to maintain a stable
quality of life for its citizens.

Delivery and condition guarantees

In addition, delivery day, method of settlement and delivery point must all be
specified. Typically, trading must end two (or more) business days prior to the
delivery day, so that the routing of the shipment can be finalized via ship or rail,
and payment can be settled when the contract arrives at any delivery point.

NCDEX

NCDEX is the only commodity exchange in the country promoted by national

level institutions. This unique parentage enables it to offer a bouquet of benefits,
which are currently in short supply in the commodity markets. The institutional
promoters and shareholders of NCDEX are prominent players in their respective
fields and bring with them institutional building experience, trust, nationwide
reach, technology and risk management skills.

NCDEX is a public limited company incorporated on April 23, 2003 under the
Companies Act, 1956. It obtained its Certificate for Commencement of Business

4
on May 9,2003. It commenced itsoperationsonDecember15,2003.

NCDEX is a nation-level, technology driven de-mutilated on-line commodity

exchange with an independent Board of Directors and professional management -
both not having any vested interest in commodity markets. It is committed to
provide a world-class commodity exchange platform for market participants to
trade in a wide spectrum of commodity derivatives driven by best global
practices, professionalism and transparency.

NCDEX is regulated by Forward Markets Commission. NCDEX is subjected to

various laws of the land like the Forward Contracts (Regulation) Act, Companies
Act, Stamp Act, Contract Act and various other legislations.

NCDEX is located in Mumbai and offers facilities to its members about 550
centers throughout India. The reach will gradually be expanded to more centers.
MCX

Multi Commodity Exchange (MCX) is an independent commodity

exchange based in India. It was established in 2003 and is based in Mumbai. The
[1]
turnover of the exchange for the period Apr-Dec 2008 was INR 32 Trillion .
MCX offers futures trading in Agricultural Commodities, Bullion, Ferrous &
Non-ferrous metals, Pulses, Oils & Oilseeds, Energy, Plantations, Spices and
other soft commodities.

MCX has also setup in joint venture the National Spot Exchange a purely
agricultural commodity exchange and National Bulk Handling Corporation
(NBHC) which provides bulk storage and handling of agricultural products.

It is now regulated by forward market commission.

 MCX is India's No. 1 commodity exchange with 84% Market share in
2008($0.84 trillion) [2]
 The exchange's competitor is National Commodity & Derivatives
Exchange Ltd ([1])

4
  Globally, MCX ranks no. 1 in silver, no. 2 in natural gas, no. 3 in crude oil
and gold in futures trading ([2])

 The crude volume touched 23.49 Million barrels [3] on January 3, 2009

 The highest traded item is gold with an average monthly turnover of Rs

1.42 Trillion ($29 Billion).

 MCX has 10 strategic alliances with leading commodity exchange across

the globe

 The average daily turnover of MCX is about US$ 2.4 billion [4]

 MCX now reaches out to about 500 cities in India with the help of about
10,000 trading terminals

Multi Commodity Exchange (MCX) Headquartered in the financial

capital of India, Mumbai, MCX (www.mcxindia.com) is a demutualised
nationwide electronic multi commodity futures exchange set up by Financial
Technologies with permanent recognition from Government of India for
facilitating online trading, clearing & settlement operations for futures market
across the country. The exchange started operations in November 2003.A part
from being accredited with ISO 9001:2000 for quality standards, MCX offers
futures trading in 55 commodities as on December 31, 2007, defined in terms of
the type of contracts offered, from various market segments including bullion,
energy, ferrous and non-ferrous metals, oils and oil seeds, cereals, pulses,
plantations, spices, plastics and fibers.

The exchange strives to be at the forefront of developments in the

commodities futures industry and has forged ten strategic alliances across the
world, including with Tokyo Commodity Exchange, Chicago Climate Exchange,
London Metal Exchange, New York Mercantile Exchange, New York Board of
Trade and Bursa Malaysia Derivatives, Berhad.

4
CHAPTER 2:

2.1 NEED FOR THE STUDY

It helps to understand about doing things in a professional atmosphere. The

researcher gets a professional attitude as an intern inside the organization. The
company can identify their recent impact among customers about their service
quality and improve whether it needs.

2.2 SCOPE OF THE STUDY

The study was conducted for a period of 30 days and the scope of study is
affected by the limitation of time. The findings and suggestions of the study have
to be perceived in the framework of these limitations .The main aim behind the
study of researcher is to learn the managerial aspects of how to plan, organize,
implement & direct the activities related to the project provided by ‘Sunshare
Investments.’.

4
2.3 OBJECTIVES OF THE STUDY

 To get an overview of the share trading industry

 To study the overall working of Sunshare Investments.
 To understand the organizational structure of Sunshare Investments.
 To study the functions of different departments

2.4 LIMITATIONS OF THE STUDY

 Unavailability of some documents which were confidential.

 Employees were busy in their work so they could not give more
information.
 There may be errors due to the bias of the respondents.
 The time allotted for conducting the organizational study was only 30
days. It is not enough for understanding about the organization in detail.
 The study is limited to my experience and knowledge.

4
CHAPTER III
DEPARTMENT STUDY

DIFFERENT DEPARTMENTS IN THE SUNSHARE INVESTMENTS.

There are 3 departments in the organization which are classified on the basis of
the functions what they are performing, which are listed below:

3.1 HUMAN RESOURCE DEPARTMENT

The process of hiring and developing employees so that

they become more valuable to the organization. Human resource management
includes conducting job analyses , planning personnel needs , recruiting the right
people for the job , orienting and training , managing wages and salaries
,providing benefits and incentives , evaluating performance , resolving disputes ,
and communicating with all employees at all levels.

3.1.1 Recruitment and Selection process:

Recruitment is the process of identifying that the organization needs to employ
someone up to the point at which application forms for the post have arrived at
the organization. Selection then consists of the processes involved in choosing
from applicants a suitable candidate to fill a post.

The purpose of recruitment is to attract a wide selection of candidates to fill a job

vacancy. From this group, candidates can be narrowed down according to skills,
qualifications and job specifications.

A Recruitment Process is an organization-specific model of how the sourcing of

new employees is undertaken. Typically the ownership of the recruitment process

4
resides within the Human Resources function, although again this may differ
depending on the specific organizational structure.
3.1.2 Recruitment:
 Paid consultancy
• Unpaid consultancy
3.1.3 Selection Process:
Sunshare Investments conducts recruitment process every year to select new
candidates. The selection process of the Sunshare Investments consists of 3
rounds. These rounds are as follows:
 PPT Test
 Aptitude Test
 HR + Technical Interview
3.1.4 Academic Criteria:
 A total of 60 percent throughout (Class X, XII and Degree).
 No backlogs.
 Education gap of up to 1 year.

3.1.5 FLOW CHART FOR RECRUITMENT:

HR MANAGER

HEAD OF THE DEPARTMENT

SUPERVISORS

GENERAL
3.1.6 Performance Appraisal Methods MANAGER
and process:FOR
APPROVAL
Performance Appraisals is the assessment of individual’s performance in a
systematic way. It is a developmental tool used for all round development of the
employee and the organization. The performance is measured against such factors

4
as job knowledge, quality and quantity of output, initiative, leadership abilities,
supervision, dependability, co-operation, judgment, versatility and health.
Assessment should be confined to past as well as potential performance also. The
second definition is more focused on behaviors as a part of assessment because
behaviors do affect job results.
Use of Performance Appraisal:
o Promotions
o Confirmations
o Training and Development
o Compensation reviews
o Competency building
o Improve communication
o Evaluation of HR Programs

3.1.7 Wages and salary administration, incentives and Fringe Benefits:

 Base wages and salaries are defined as the hourly, weekly and monthly
pay that employees receive for their work in an Organization. Can term it
as compensation management. Thus, Wage & Salary Administration is
the group of activities involved in the development, implementation&
maintenance of a pay system
 Incentives refer to rewards given to employees in monetary on non-
monetary form in order to motivate them to work more efficiently. It is
also known as payment by results (PBR) as they are paid in lieu of
outstanding performance by an employee.
 Fringe benefits are forms of compensation you provide to employees
outside of a stated wage or salary. Common examples of fringe benefits
include medical and dental insurance, use of a company car, housing
allowance, educational assistance,vacation pay, sick pay, meals and
employee discounts.
3.2 MARKETING DEPARTMENT

4
 Marketing management is “the art and science of choosing target markets
and getting , keeping, and growing customers through creating , delivering , and
communicating superior customer value” It is an organizational discipline which
focuses on the practical application of marketing orientation, techniques and
methods inside enterprises and organization and on the management of a firm's
marketing resources and activities.

3.2.1 Nature of branding.

A brand is a very important part of a company because it provides unique
identifications for the company and its offerings. Brand recognition plays a big
part when a company is trying to sell their products.

In Sunshare Investments they market through

 Advertisements
 Promoting
 Indoor marketing
 Outdoor marketing
 Customer service desk
 Events
 Standees
 Press ads

4
3.3 FINANCIAL DEPARTMENT

Financial management refers to the efficient and effective management

of money (funds) in such a manner as to accomplish the objectives of the
organization. It is the specialized function directly associated with the top
management. The significance of this function is not seen in the 'Line' but also in
the capacity of 'Staff' in overall of a company.

3.3.1 ACCOUNTING & REPORTING (CONTROLLER GROUP)

The Controller Group is responsible for maintaining a company's books
and ensuring that all business transactions are properly recorded and managed.
The general ledger is the main source for all of the company’s financial reports, so
it is important that the Financial Controller and other staff accountants keep an
organized record of all credits and debits (a
double-entry general ledger ‘journal’). The controller group also performs tasks
such as cost accounting and fixed assets accounting.

3.3.2 BUDGETING & FORECASTING

The Budgeting and Forecasting Group is responsible for producing and assessing
a company's budget by calculating the variance between planned and actual costs.
They also forecast the revenue and expenses of certain groups or functions,
allowing budget 'owners' to plan and prioritize spending. The Forecasting Group
also produces 'what if' scenarios to prepare the company for a variety of
possibilities.

Sunshare Investments prepare a budget before the year end for next year which
includes

4
  Events
 Salary
 Contractors
 Professional consultancy
 Hospitality and so on.

3.3.3 PAYROLL:
The Payroll Group is responsible for the administration and documentation of all
salaries, wages, bonuses and deductions (payroll tax, social security) received by
employees. Though this group is commonly outsourced or carried out within the
HR group, if the business is small, payroll may be handled directly by the owner
or an associate.

3.4 SERVICE DEPARTMENT

The customer visiting the office must enjoy the overall experience offered
and look forward to the services.
Here are some of the essentials which must be provided to ensure smooth
customer experience and satisfaction. Create a checklist and check as you go
along, working on all loopholes.

• Responsive Help Desk

• Customer Service Desk
• Facilitating Customers With Special Needs

Responsive Help Desk

The first and foremost goal should be a responsive and efficient help desk.
The help desk should not only be on the main floor, but in fact on all floors of the

4
office, attending to customers and guiding them. The desk should carry all
necessary information and be able to connect customers.

10.2 Customer Service Desk

Helping customers to know about the office and the products. It can be
very useful and improve the office by getting the feedback from the customer.

10.3 Facilitating Customers With Special Needs

Customers with special needs should be given an attentive service, looking
after their needs and requirements. Parking for the disabled customers should be
separately organized and managed, ensuring a smooth experience for them,
whenever they visit the office.

CHAPTER IV
FINDINGS

4
FINDINGS

 Sunshare Investments has one of the largest team of research analysts in

the industry, dedicated to tracking down the best companies to invest in.

 There is a good relation exist between the employees and management.

 Sunshare Investments provides good welfare facilities.

 Most of the selected advisors have a good qualification. Most of them are
graduates and post graduate.

 All most 50% of the new advisors give full time to their profession. This
shows how new advisors are dedicated towards their new profession.

 Employees wish to acquire skills through continuous training.

CHAPTER V
SUGGESTIONS

 Adapting new technology to service customers quickly, efficiently and

conveniently.

4
  Developing and implementing superior risk management and investment
strategies to offer sustainable and stable returns to our shareholders.

 Company should provide full information to the customers before

targeting so they can take interest.

CHAPTER VI
CONCLUSION

4
 The internship training is one of the most important training to understand
the entire procedure and process of the various departments. The internship
training is an essential academic requirement of management students. The
internship training underwent in Sunshare Investments has enriched my
.knowledge.

It also helped me to learn the overall processes that are being carried out in
factory. The training in this company throws light on the practical aspects of
company activities and enables to have first hand information relating to the
company. Thus this training helped me to gain more knowledge and uplift my
career