INDUSTRY PROFILE-

FINANCIAL SERVICE INDUSTRY

A financial market is a marketplace in which people and entities can trade financial securities,
commodities, and other fungible items of value at low transaction costs and at charges that
mirror supply and demand. Securities include stocks and bonds, and commodities include
treasured metals or agricultural items. There are both general markets (in which many
commodities are traded) and specialized markets (where the handiest one commodity is traded).
Financial markets facilitate:
the raising of capital (in the capital markets)
the transfer of risk (within the derivatives markets)
Price discovery
worldwide transactions with the integration of financial markets
the transfer of liquidity (within the money markets)global exchange (in the currency
markets)

Importance of Financial Services

It is the presence of financial services that allow a country to improve economic conditions in
which there is more production in all sectors leading to economic growth.

The benefits of economic growth are reflected in the people in the form of economic
prosperity in which people enjoy a higher standard of living. It is here financial services
allows an individual to obtain or acquire a variety of consumer products through hire
purchase. In this process, several financial institutions also benefit. The presence of financial
institutions to promote investment, production, savings, etc.

Expands activities of financial markets.

Benefits of Government.
Economic Development.
Economic Growth.
Ensures Greater Yield.
Maximizes Returns.
Minimizes Risks.
 Promotes Savings.
Promotes Investments.
Balanced Regional Development.
Promotion of Domestic & Foreign Trade.

The financial services sector in India, which accounts for 6 percent of the national GDP, is
growing rapidly. Although this sector consists of commercial banks, development finance
institutions, non-banking financial companies, insurance companies, cooperatives, mutual funds,
and the new "bank payments," dominated by the banks, which hold stakes of more than 60
percent.

Reserve Bank of India (RBI) is the apex bank state, controlling all activities in the financial
sector. Commercial banks including the public sector and private banks and are under the
regulatory supervision of RBI. development finance institutions including banks and agricultural
industries.

Non-banking finance company (NBFC) provides loans, the purchase of shares and debentures,
and offers leasing, leasing, and insurance services.

insurance companies functioning in both public and private sectors and is controlled by the
Insurance Regulatory and Development Authority (IRDA).

India also has a vibrant capital market with stock exchanges are controlled by the Securities and
Exchange Board of India (SEBI).

According to "India in Business," a Union Government website, the Indian banking sector assets
are worth US$ 1.42 trillion on March 13, 2020.

According to a report by KPMG-CII, India's banking sector is on its way to becoming the world's
fifth-largest by 2020. The life insurance sector in the country is the largest in the world, and the
Gross premium collected by life insurance companies in India increased from Rs 2.56 trillion
(US$ 39.7 billion) in FY12 to Rs 7.31 trillion (US$ 94.7 billion) in FY20.

Assets Under Management (AUM) of Indian Mutual Fund Industry as on May 31, 2020, stood at
₹24,54,758 crores. The pension corpus fund is projected to record $ 1 trillion by 2025. Reforms
to the financial services industry and put the economy on a fast track includes measures to make
financing available for medium, small and micro industries.
India never had the financial services industry and was heavily dominated by the government
and most of the services provided by the nationalized banks. The financial sector reforms
initiated in 1991 with the aim of accelerating economic growth.

In subsequent years, the industry and the services sector was opened to foreign direct investment.
Reforms end the dominance of the public sector and reduce government control directly in
industry investments.

Financial sector reforms in India have increased mobilization and allocation of resources. The
liberalization of interest rates and easing norms cash reserves have helped to fund the make
available for various sectors.

However, the norms have been tightened prudential and transparency and increased regulation to
avoid a systemic collapse that other countries have suffered.

SWOT Analysis

STRENGTHS
 A valuable contributor to GDP
 Regulatory environment
 Government backing
 Provide capital appreciation
 High Rate of Return possible
 An equity Investor can own a part of the
company
WEAKNESSES
 No security or guarantee of returns
 High-risk investment option
 Costs like brokerage, transaction-related
taxes to be incurred

OPPORTUNITY
 On the long run, considered to be the best
investment options for highest returns
 You can vote for certain decisions of the
company
 Long term capital gains and dividends are
tax-free
THREATS
 Volatility can impact returns
 Initial capital may get wiped out
 Many local and global factors affect share
prices
 COMPANY PROFILE- HEDGE

Hedge Equities Ltd. is one of the leading retail stockbroking houses, running quite successfully
in the country. Hedge offers a wide range of equity related services including trade execution
on BSE, NSE, derivatives, depository services, online trading, investment advice, etc. to its
customers. The firm also has an online trading and investment site –www.hedgeequities.com.
This site gives access to superior content and transaction facility to retail customers across the
country. It aims at simplifying the process of investing in stocks.
Hedge Equities is a company that has been built on the cutting edge experience of its founders,
of over 25 years. Even though they belong to various industries each one of them is backed with
strong expertise in global financial markets. The Board comprises of experts from different
industries: FedEx Securities, Baby Marine Exports, Thakker Developers, Smart Financial,
S.M.Hegde (CFO – Videocon Industries), and Padmashree Mohan Lal.

History and incorporation

Alex K Babu, director of Equity Hedge, entered the family business to export seafood Baby
Marine Exports, after completing graduation in engineering. After receiving a thorough
exposure in the financial field of business, he entered the financial markets to begin a stock
brokerage firm-Hedge Private Equity Ltd., in 2007.

Hedge Equity When launched, the Sensex was at 13,000. Immediately touched its lowest point,
in 8000, within two months. However, due to strong capital back, the company can fight the
recession with the help of an aggressive marketing campaign and through the expansion of the
network. It succeeded in establishing 50 branches in the first six months. When the market
recovers, hedging derived from the brand name it has created.

Equity Hedge incorporated under the Companies Act 1956 as Hedge Equities Private Limited
on December 17, 2007, with its registered office in 1205, Dalamal Tower, Nariman Point. Then
the companies converted into a public limited company on February 17, 2009.

Hedge Equities Limited General Meeting (AGM) was last held on 28 September 2013, and a
note from the Ministry of Corporate Affairs (MCA), the latest balance sheet filed on March 31,
2013.

Hedge Equities Limited Employer Identification Number is (CIN) U65990MH2007PLC176866

and the registration number is 176 866.

the registered address is 1205, DALAMAL TOWER, Nariman Point, MUMBAI - 400 021,
Maharashtra INDIA.

CORPORATE OFFICE
The hedge corporate office is in Mamangalam, Cochin, Kerala.

Hedge Equity has 54 branches and 52 franchises spread across four Indian states (Kerala,
Karnataka, Tamil Nadu, and Maharashtra) and in Dubai.
It has opened 120 branches in Kerala in the last two years, against an initial target of 50. The
hedge has the most branches, unlike most colleagues who prefer the franchise model.

Mission
To be a financial supermarket

Vision
Partnering with clients to build, manage, and grow their wealth

PRODUCT PROFILES
Equity Hedge they work closely with their clients to prepare investment strategies related to
their risk profile and recommend the following asset classes to determine the volatility and
risk-return profile of the same. Their team is one-stop gateway access to various products and
backs it with in-depth research and operational efficiency.

Some of the Products are:-

Direct Equity
mutual funds
Liquidity Management Solutions
commodity
insurance
Loans and Services
Derivatives - Futures and Options
Structured Products
Fixed Income Products
Estate Planning Products
Retirement Planning Product

RESEARCH METHODOLOGY
Introduction
Mutual Fund is an investment vehicle created with pooling of funds collected from the scattered
investors to invest in stocks, bonds, money market instruments, or similar assets. The concept of
Mutual Funds is of recent origin. Some have benefited from it and many are not even aware of
such a mode of investment.
Some of the investors, with their limited awareness of this mode, invest in it and expect return
higher than those provided under time in commercial banks and if the expected result does not
come up instead turn to backfire, they quit from this mode and also demotivate new ones from
entering. This study is conducted to understand the extent of awareness of Mutual Funds in
Investors and steps in familiarizing them among potential investors.

Research Problem
A mutual fund is an investment vehicle created to raise funds collected from investors spread for
the purpose of investing in stocks, bonds, money market instruments, or similar assets. In each
mode of investment, the security of the principal amount, with sustainable results and growth
potential, mutual funds have designed various financial instruments based on the preferences of
investors, a change in the profile, and even with the changes in the stock market. The concept of
Mutual Funds is a recent origin.
Some have benefited from it and many do not even realize such a mode of investment. Some
investors, with limited knowledge of them in this mode, invest in them expect a return that is
higher than that provided under deposits in commercial banks and if the expected results do not
come instead of switching to backfire, they quit this mode and also demotivate the new entry.
This study was conducted to understand the extent of awareness of Mutual Fund Investors and
steps in familiarizing them among potential investors.

Project Title
“ A study on awareness about Mutual funds investments among the
customers in Ernakulam, as an alternative better option in the long run “

Research-Objectives
 To understand the awareness level of the investors about mutual fund investment with
reference to Hedge Equities.
 To compare the difference in the awareness level among the investors with different
demographic profiles. (Age, Gender, Income, Etc.)
 To analyze the purpose of investment in Mutual Funds.
 To understand the satisfaction levels with the services of Hedge equities and suggest
measures for improvement.
  To examine the customers' investing power and their interest in a financial product.

Type of Research:
The project will be based on objective and descriptive research.

Sampling Plan:
Non-probability convenience sampling. Convenience sampling refers to the collection of
information from members of the population who are conveniently available for the research.

Data Collection:
Primary data and secondary data. The questionnaire will be used as the source of Primary data
and secondary data will be collected from Websites, Reports. Books on the subject.

Data Analysis:
Data analysis will be done using appropriate statistical tools, using software such as Ms. Excel
and IBM SPSS

Limitation:
 The response of the respondents to the questionnaire may not be accurate.
 As the project will be qualitative, there can be a bias response from the participants in
some cases.