Investment Pattern on the basis of investors risk profile

CELEBRUS CAPITAL LTD

Rani Channamma University, Belagavi Page 1

RANI CHANNAMMA UNIVERSITY, DEPARTMENT OF

BUSINESS ADMINISTRATION,

BELAGAVI.

A Project Report on

“INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK

PROFILE”

Undertaken at

CELEBRUS CAPITAL LTD.

Submitted to:

Rani Channamma University,

Belagavi (In partial fulfillment of Post graduate Degree in Master of Business Administration)

Submitted by:

MR. ARIHANT K. ZUNJARVAD

Registration No.MB151005

MBA 2nd

SEM, 2015-17

UNDER THE GUIDANCE OF

COMPANY GUIDE: INSTITUTE GUIDE:

Mr. VIJAY SAMBREKAR Prof. V. S. CHATAPALLI



DECLARATION

I am Mr. Arihant K.Zunjarvad the undersigned, hereby declare that the Project Report

entitled “A STUDY ON INVESTMENT PATTERN ON THE BASIS OF

INVESTORS RISK PROFILE” has been prepared by me under the supervision and

guidance of Prof. V.S.CHATAPALLI, Department of Business Administration, Rani

Channamma University, Belagavi. The report is submitted to Rani Channamma

University, Belagavi in partial fulfillment of the University rules and regulations for

the award of the Degree of Master of Business Administration in finance

specialization.

I further declare that this report is based on the original research report undertaken by

me and has not formed a basis for the award of any other Degree of RCU or any other

University.

Mr. Arihant.K.Zunjarvad



ACKNOWLEDGEMENT

I feel immense pleasure to present this “A Study on Investment Pattern on The

Basis of Investors Risk Profile’’ of as my project work. Success of every endeavor is

the, by product of constant effort, patience and accountability from various sources.

This project is no exception. This project has given me tremendous experience.

I am overwhelmed with pleasure to express my sincere obligation to them who kept

my spirits high completion of this report. I am deeply indebted to Prof. S.C.Patil,

Chairman-Department of Business Administration, Rani Channamma University for

giving me an opportunity to carry on this project.

I would sincerely like to thank my faculty Guide Prof. V.S.Chatapalli, the help given

by him in completing this project by guiding me at each stage of the study.

At the very outset, I would like to thank Mr. Vijay Sambrekar. (Branch Manager),

my external guide for giving me an opportunity to work for the esteemed and reputed

consumer care and lightings company and guiding and motivating me through all the

difficulties that came my way and spending enormous amount of time discussing

about the project. During this period I experienced the real work environment the

market situation the mannerisms, etc. that are very much needed to sustain myself in

this large and competitive environment.

I own a debt of gratitude to my Parents, the silence guides in my life without those

never-ending support nothing would have been possible.

Last but not the least I thank each and every one who directly or indirectly helped me

in making my project successful and memorable one.

Mr. Arihant .K. Zunjarvad



TABLE OF CONTENTS

Particulars Page No

Declaration From Student I

Certificate From Company Guide II

Certificate From Internal Guide III

Chairman’s Certificates IV

Acknowledgement V

List Of Tables VI

List Of Charts VII

List of Graphs VIII

Executive summary IX

I. Introduction 2-4

1.1 Background of study 5-6

1.1A Need of the study 7

1.1B Importance of the study 8

1.2 Statement of problem 9

1.3 Objectives of study 10

II. Literature review and

Theoretical background

11-14

15-22

III. Research methodology 23-24

IV. Sector analysis 25

4.1 Size of the industry 26

4.2 Growth rate 27

4.3 Govt regulations 28-31

4.4 Global view 32

4.5 Major players 33

4.6 Markets 34

V. Company profile 35



5.1 3c-company, competitor, customer 35-36

5.2 Origin, scope and scale 37-42

5.3 Marketing and branding 43

- Market size/growth/share 43

- Products and brands 44-45

Account opening process 46

- Major customers/segment 47

- USP 48-50

5.4 HR Function 51

- Organization structure 51

Organization development 52

5.5 HRM Practices 53

- Operations 53

- Work flow 54

- Technology 55

- Quality system 56

5.6 Competitions 57-59

- CSR Activities 60

5.7 SWOT Analysis 61-62

VI. Data analysis 63-77

Results and Discussion 78-80

VII. Findings and conclusion 81-82

VIII. Suggestions 83

IX. Learning experience 84

- Bibliography 85

- Annexure 86-88

1 Weekly reports 89-96

2 Supporting documents



LIST OF TABLES

Serial

No.

Details Page No.

1. Investment styles 18

2. Company profile 35-36

3 Brokerage rates 48

4. Capital leverage, software used, and fund

transfer service

49-50

5. Turnover and other charges 52

6. Gender level 64

7. Age level 65

8. Education level 66

9. Occupation 67

10. Annual Income 68

11. Number of dependents in family 69

12. Family income of investors 70

13. Investment option of investors 71

14. Reason for preferring the mentioned option 72

15. Percentage of investors 73

16. Type of risk 74

17. Time frame of investment 75

18. Attitude towards loss 76

19. Attitude towards decrease in value 77



LIST OF CHARTS

Serial

No.

Details Page No.

1. Process of account opening 46

2. Organization structure 51

3. Gender level 64

4. Age level 65

5. Occupation level 67

6. Number of dependents 69

7 Investment options 71

8. Percentage of investment 73



LIST OF GRAPHS

Serial

No.

Details Page No.

1. Education level 68

2. Annual income 70

3. Family income 72

4. Reason for preferring investment option 74

5. Type of risk 76

6. Time frame of investment 77



EXECUTIVE SUMMARY

People invest their money for generating good returns. But in this investment some

kind of risk is involved. All investors have different attitudes towards risk. When it

comes to investing, it is important to consider the risk profile or tolerance carefully,

including how comfortable investors are with the possibility of losing money, or that

returns on their investments. The risk profile of investors depends upon their

demographic structures or characteristics.

The project deals with the analyzing the investment pattern on the basis of risk profile

of investors at CELEBRUS Capital Ltd. and what are the risk factors that influence

the type of investment made by individuals . As we all know that every person who

wants to gain better returns in future they must have to invest their money in stock

market or anywhere else. This study describes the investment pattern use by different

persons while doing investment in stock market keeping different risk in mind.

The main reason to choose this research is to find out the investment pattern behavior

in respect of their risk bearing capacity and this research helps the company to target

the investors according to their risk ability. The research process chosen by me is

qualitative and quantitative research. Questionnaires in part help me a lot in finding

the actual position of the market under the survey method.

.A sample size of about 100 respondents which includes individual investors were

taken for purpose of survey. After the survey was completed, the data was first stored

and then analyzed on the chosen parameters. This analyzed data was later on

converted into graphs. Such as pie chart, bar graphs, etc this was to make result easily

comprehensible by any one going through the report. Later on, all this information

was compiled in the form of a presentable and highly comprehensible report.

After analyzing the data, the problem which has been identified that most of the

investors are not ready to bear risk in expectation of higher returns. There is a strong

relationship in investment pattern and risk bearing capacity of investors while doing

investment. For analyzing the data I have used MS Excel 2007 for making graphs and

other calculations.



I. INTRODUCTION

HISTORY OF STOCK EXCHANGE

The only stock exchanges operating in the 19th century were those of Bombay

set up in 1875 and Ahmedabad set up in 1894. These were Efficient Market

Hypothesis organized as voluntary non-profit-making association of brokers to

regulate and protect their interests. Before the control on securities trading became a

central subject under the constitution in 1950, it was a state subject and the Bombay

securities contracts (control) Act of 1925 used to regulate trading in securities. Under

this Act, The Bombay Stock Exchange was recognized in 1927 and Ahmedabad in

1937.

During the war boom, a number of stock exchanges were organized even in

Bombay, Ahmedabad and other centers, but they were not recognized. Soon after it

became a central subject, central legislation was proposed and a committee headed by

A.D.Gorwala went into the bill for securities regulation. On the basis of the

committee's recommendations and public discussion, the securities contracts

(regulation) Act became law in 1956.

DEFINITION OF STOCK EXCHANGE:

"Stock exchange means anybody or individuals whether incorporated or not,

constituted for the purpose of assisting, regulating or controlling the business of

buying, selling or dealing in securities."

It is an association of member brokers for the purpose of self-regulation and

protecting the interests of its members.

It can operate only, if it is recognized by the Government under the securities

contracts (regulation) Act, 1956. The recognition is granted under section 3 of the Act

by the central government, Ministry of Finance.



NATURE & FUNCTIONS OF STOCK EXCHANGE

There is an extraordinary amount of ignorance and of prejudice born out of

ignorance with regard to nature and functions of Stock Exchange. As economic

development proceeds, the scope for acquisition and ownership of capital by private

individuals also grow. Along with it, the opportunity for Stock Exchange to render the

service of stimulating private savings and challenging such savings into productive

investment exists on a vastly great scale. These are services, which the Stock

Exchange alone can render efficiently.

The Stock Exchanges in India have an important role to play in the building of

a real shareholders democracy. To protect the interest of the investing public, the

authorities of the Stock Exchanges have been increasingly subjecting not only its

members to a high degree of discipline, but also those who use its facilities-Joint

Stock Companies and other bodies in whose stocks and shares it deals.

The activities of the Stock Exchange are governed by a recognized code of

conduct apart from statutory regulations. Investors both actual and potential are

provided, through the daily Stock Exchange quotations. The job of the Stock

Exchange and its members is to satisfy the need of market for investments to bring the

buyers and sellers of investments together, and to make the 'Exchange' of Stock

between them as simple and fair as possible.



NEED FOR A STOCK EXCHANGE

As the business and industry expanded and economy became more complex in

nature, a need for permanent finance arose. Entrepreneurs require money for long

term needs, whereas investors demand liquidity. The solution to this problem gave

way for the origin of 'stock exchange', which is a ready market for investment and

liquidity.

As per the Securities Contract Act, 1956, "STOCK EXCHANGE" means any

body of individuals whether incorporated or not, constituted for the purpose of

regulating or controlling the business of buying, selling or dealing in securities".

BY-LAWS

Besides the above act, the securities contracts (regulation) rules were also

made in 1957 to regulate certain matters of trading on the stock exchanges. There are

also by-laws of exchanges, which are concerned with the following subjects.

Opening / closing of the stock exchanges, timing of trading, regulation of

blank transfers, regulation of badla or carryover business, control of the settlement

and other activities of the stock exchange, fixation of margins, fixation of market

prices or making up prices, regulation of staravani business (jobbing), etc., regulation

of brokers trading, Brokerage charges, trading rules on the exchange, arbitration and

settlement of disputes, Settlement and clearing of the trading etc.



1.1 Background of the Study

The study has been conducted to know the “Investment Pattern of Investors

On The Basis of Investors Risk Profile” at CELEBRUS Capital Ltd. in Belagavi. And

this study helps to know what are the risk factors involved in the investment in share

market and it also helps to know the attitude of investors towards the risk that is

involved in the investment in the share market.

Investment is the employment of funds on assets with the aim of earning income or

capital appreciation. Investment means putting your money to work to earn more

money or simply speaking it is sacrificing of money today for future return.

Investment! One of the most successful way to make financial provisions for the

future, where most of the conditions are uncertain and unpredictable. With well

planned investment one can get the satisfaction of safety and surety in life. We are

familiar with investment from very early days of civilization. Initially the term saving

was more popular, and was considered as safest way of making money stable.

Investment may be said as keeping a sum of money aside from the present savings

with the view of earning returns on it. It is done on the cost of sacrifice of present

consumption of that part of money.

The dictionary meaning of investment is to commit money in order to earn financial

return or to make use of the money for future benefits or advantages. People commit

money to investments with an expectation to increase their future wealth by investing

money to spend in future years.

All investments have some risk, whether in stock, capital market, banking, financial

sector, real estate, bullion, gold etc. The degree of risk however varies on the basis of

the features of the assets, investments instrument, the mode of investment, time frame

or the issuer of the security etc.

Investment benefits both economy and the society. It is an outgrowth of economic

development and the maturation of modern capitalism. For the economy as a whole,



aggregate investment sanctioned in the current period is a major factor in determining

aggregate demand and, hence, the level of employment.



1.1A Need of the study

The researcher should know the investor’s investment pattern and the risk

involved in the investing the money and how their attitude and temptation changes

when there is a volatility in the in the share market.

It is very much essential for the researcher to suggest the CELEBRUS capital that

how it should deal with the investors or traders according to their risk profile.

So it is very essential for the researcher to study the Investment pattern and the risk

involved in it. And it helps to know the investors attitude towards the risk.



1.1B Importance of the study

People invest their money for generating good returns. But in this investment,

some kind of risk is involved. All investors have different attitudes towards risk.

When it comes to investing, it is important to consider their risk profile or tolerance

carefully, including how comfortable they are with the possibility of losing money, or

that returns on their investments. The risk profile of investors depends upon their

demographic structures or characteristics.

And this study helps the researcher to understand the investment pattern of the

investors on the basis of their risk profile and it helps me to suggest the company that

how it should deal with the investors in order deliver them the good service according

to their risk bearing capacity.

So the researcher find it very important topic for me to execute the project in order to

get a more knowledge about the share market and the investment styles and the

demographic and technical factors that influence the investor’s attitude in the share

market.



1.2 Statement of problem

Today investing has become a most important aspect in the present scenario and

broking companies don’t know how to deal with investors as per their investment

pattern and their risk profile.

So the researcher going to study about the investment pattern of the investors on the

basis of their risk profile in the CELEBRUS CAPITAL Ltd. And their by suggesting

the company that how it should deal with investors according to their risk profile.



1.3 Objectives of the study

The objectives of the study are;

1. To study risk bearing capacity of investors on the basis of demographic

profile

2. To understand the risk profile of investors

3. To know the investors attitude towards risk

4. To suggest the measures to be taken by CELEBRUS CAPITAL Ltd. To

improve investors profile and investment pattern.



II.A Literature Review

1. Ranganathan K. (2006) in his article “A Study of Fund Selection Behavior of

Individual

Investors towards Share market: With Reference To Mumbai City” published in

ICFAI

Journal of Behavioral Finance, 2006, noted that financial markets are affected by the

financial behavior of investors. She observed that consumer behavior from the

marketing world and financial economics had brought together a need to study an

exciting area of ‘behavioral finance’. this study was an attempt to examine the related

aspects of the fund selection behavior of individual investors towards share market in

the city of Mumbai.

2. Mittal M. and A. Dhade (2007) in their research paper “Gender Difference In

Investment Risk-Taking: An Empirical Study” published in The ICFAI Journal of

Behavioral Finance, 2007, Observed that risk-taking involves the selection of options

that might result in negative outcomes. While present is certain, future is uncertain.

Hence, all investment involves risk. Decourt (2007) indicated that the process of

making

investment decisions is based on the ‘behavioral economies’ theory which uses the

fundamental aspects of the ‘Prospect Theory’ developed by Kahneman and Tversky

(1979).

3. S. Saravana Kumar (2010) in his article “An Analysis of Investor Preference

Towards

Equity and Derivatives” published in The Indian journal of commerce, July-

September

2010 concluded that the most of the investor are aware of high risk involved in the

derivative market. To reduce the risk in the market, the investors should strictly

follow



the stop loss method. The study reveals that most of the investor prefers cash market

where the script can be held for long term and the risk is less and it is transferable to

others with minimal time period. Even though risk is higher, some investors prefer

derivative market where return is also higher. The investors are suggested that before

going for investment proper study about the script is essential. The study has

highlighted a few suggestions for removing constrain in the crucial variables which

directly affect the investor and company. The investors are highly satisfied with

equity

shares because of many reasons, i.e., liquidity, low investment, capital appreciation

etc.

4. Gupta L.C. & Jain (2008) in their article “The Changing Investment Preferences

of

Indian Households” survey 2008, conducted by society for capital market research

and

development, new Delhi. Pointed out that ‘too much volatility’, ‘too much price

manipulation’, ‘unfair practices of brokers’ and ‘corporate mismanagement and

frauds’

as the main worries of investors.

5. Joseph Anbarasu D, Clifford Paul S and Annette B (2011) in their article “An

Empirical Study on Some Demographic Characteristics of Investors and its Impact on

Pattern of their Savings and Risk Coverage Through Insurance Schemes” published in

The IUP Journal of Risk & Insurance, January 2011 concluded that The saving pattern

of the people is crucial to the government in designing policies to promote savings

and

investment. Their study reveals that the people are aware about the importance of

saving, but the awareness about investment opportunities is low. Steps have to be

taken by the government and private companies to increase the awareness by

advertising campaigns. Investment companies need to offer schemes that are



affordable by the low income, uneducated, unsalaried and families with children.

Investment companies should make the provision and increase benefits, for their

schemes, to allow people to invest in the monthly mode, which is preferred by most

investors. If people invest in long term saving schemes and infrastructure, the national

saving rate will increase, which in turn will lead to a more prosperous India.

6. G. Prabakaran and G. Jayabal (2009) in their article “Investors Risk Tolerance

Towards Investments” published in SOUTHERN ECONOMIST, June 15,

2009 concluded that empirically it has been proved that the investors are

form low and moderate risk tolerant groups and the socio-economic variables do alter

the risk tolerance of individual investors. The mutual fund organisations must

consider

these socioeconomic variables of the investors that have an important influence on

investment decision making.

7. R. R. Rajamohan (2010) in his research paper title “Reading Habit and Household

Investment in Risky Assets.” Published in The IUP Journal of applied finance,

October

2010 concluded that In India, the household sector contributes about 80% of Gross

Domestic savings (GDS) The sectors investments are predominant in fixed income

bearing instruments or physical assets, and less predominant in financial assets like

shares and mutual funds. His research paper makes an attempt to analyse the

determinants of household portfolio, particularly the ownership of risky assets. His

study

shown that the reading habits and age are positively and significantly related with the

ownership of risky assets. There is thus a need for policy intervention to improve the

financial knowledge level of the households though appropriate educational programs.

Each assets (Investment Avenues) has a different rate of return, risk and liquidity. His

study shows that exposure to the financial magazines and newspapers have an impact



on the households investment in risky assets. He pointed out that, financial education

campaign could improve the possibility of the Indian households including the risky

assets in their portfolio.

8. Saptarshi Purkayastha (2008) in his article “Investor Profiling and Investment

Planning: An Empirical Study” published in The Icfaian journal of Management

Research, Dec 2008 concluded that younger investors and those with high income are

willing to take more risk. According to him people do not take much risk when the

question of investment of their hard-earned money comes.

9. Kar Pratip, Natarajan I and Singh J P (2000) in their research paper “Survey of

Indian

Investors” published in SEBI-NCAER June 2000 concluded that the households

investment in shares, debentures and mutual funds was below 10% and the equity

investor households portfolio was of relatively small value and undiversified. Further

they found that one set of households, in spite of their lower income and lower

penetration level of consumer durables, were in the securities market, while another

set

of household with higher income and higher penetration level of consumer durables

did

not have investment in securities market.

10. Shanmugham R and Muthusamy P (1998) in their article “Decision Process of

Individual Investors, Indian Capital Markets: Theories and Empirical Evidence”

published in UTI Institute of Capital Markets and Quest Publications, Mumbai. 1998

concluded that Education had a significant impact on ownership of risky assets and

occupation had a positive and significant impact on ownership of risky assets. Also

they

found that investor’s equity portfolio diversification was moderate. Education and

occupation of the investors had an impact on the use of technical analysis and

fundamental analysis respectively.



II.B. THEREOTICAL BACKGROUND

Investment is the employment of funds on assets with the aim of earning income or

capital appreciation. Investment means putting your money to work to earn more

money or simply speaking it is sacrificing of money today for future return.

Investment! One of the most successful way to make financial provisions for the

future, where most of the conditions are uncertain and unpredictable. With well

planned investment one can get the satisfaction of safety and surety in life. We are

familiar with investment from very early days of civilization. Initially the term saving

was more popular, and was considered as safest way of making money stable.

Investment may be said as keeping a sum of money aside from the present savings

with the view of earning returns on it. It is done on the cost of sacrifice of present

consumption of that part of money.

The dictionary meaning of investment is to commit money in order to earn financial

return or to make use of the money for future benefits or advantages. People commit

money to investments with an expectation to increase their future wealth by investing

money to spend in future years.

All investments have some risk, whether in stock, capital market, banking, financial

sector, real estate, bullion, gold etc. The degree of risk however varies on the basis of

the features of the assets, investments instrument, the mode of investment, time frame

or the issuer of the security etc.

Investment benefits both economy and the society. It is an outgrowth of economic

development and the maturation of modern capitalism. For the economy as a whole,

aggregate investment sanctioned in the current period is a major factor in determining

aggregate demand and, hence, the level of employment.



2.1 Elements of Investment

Reward

Risk and Return

Time

2.2 INVESTMENT GOALS AND OBJECTIVES

Why people are investing? Is it for something in the near future (new car, or down

payment on a home) or something farther off (a young child's education or their own

retirement)? If their investing goals are short term they want their money to be there -

with interest - when they need it.

Therefore they need to focus on relatively short term investments like term deposits or

a cash management trust. If on the other hand, they are investing for the long term,

they may be able to afford to take some risk in pursuit of a higher return. Shares,

property, and growth orientated managed which historically have provided higher

returns than fixed interest or cash over time, may be more appropriate.

2.3 INVESTMENT TIMEFRAME

When do you expect to need to access all or part of your investments:

Less than 1 year (immediate access)

Less than 2 years (short term)

2 to 5 years (short to mid-term)

6 to 10 Years (mid to long term)

Over 10 Years (long term)



2.4 LIQUIDITY / CASH REQUIREMENTS

How much money do they need to keep available for emergencies such as

house repairs, a dental emergency or serious car repairs? These emergencies

can be a serious setback if they are not prepared. The amount of their

emergency fund will depend on their current lifestyle and expenses. As a

general rule they should have about 3 months of income set aside to meet

emergencies without needing to rely on credit cards. A cash management trust

that pays high interest can be a good place to keep emergency funds.



2.5 Risk Profile and Investment Styles

Table No.1

Risk Profile Investment style

Conservative Your primary investment goal is

capital protection. You require stable

growth and/or a high level of income,

and access to your investment within

3 years.

Cautious Your primary investment goal is

capital protection. Investors in this

risk profile require fairly stable

growth and/or a moderate level of

income. Your investment term is 3

years or more.

Moderate Your primary investment goal is

capital growth. You can tolerate some

fluctuations in the value of your

investment in the anticipation of a

higher return. You don't require an

income and you are prepared to invest

for 5 years or more.

Moderately aggressive Your primary investment goal is

capital protection. Investors in this

risk profile require fairly stable

growth and/or a moderate level of

income. Your investment term is 3

years or more.

Aggressive Your primary investment goal is

long-term capital growth. You can

tolerate substantial fluctuations in the



value of your investment in the short-

term in anticipation of the highest

possible return over a period of 10

years or more.

2.6 Age and Income

Investors age and their income - particularly the stability of their income - are

important factors to consider when determining your investment profile. If they

are young they can afford to take a longer term view and any short-term losses

may have minimal effect.

If their income or employment is unstable they need to take this in to account

when setting their investment goals.

2.7 Why Should People Do The Investment?

Financial reasons Other Reasons

1. To generate on their idle resources 1. Tax Savings

2. To earn returns. 2. Income

3. To protect and increase capital. 3. Ease of Withdrawal

4. To have money for important events.

5. Make a provision for future uncertainties.

Investing is not a game but a serious subject that can have a major impact on

investor's future wellbeing. Virtually everyone makes investments. Even if the

individual does not select specific assets such as stock, investments are still made

through participation in pension plan, and employee saving programme or through

purchase of life insurance or a home or by some other mode of investment like

investing in Real Estate (Property) or in Banks or in saving schemes of post offices.

Each of this investment has common characteristics such as potential return and the

risk you must bear. The future is uncertain, and you must determine how much risk



you are willing to bear since higher return is associated with accepting more risk.

(Lopes, 1987) The individual should start by specifying investment goals. Once these

goals are established, the individual should be aware of the mechanics of investing

and the environment in which investment decisions are made.

Today the field of investment is even more dynamic than it was only a decade ago.

World event rapidly events that alter the values of specific assets the individual has so

many assets to choose from, and the amount of information available to the investors

is staggering and continually growing. The key to a successful financial plan is to

keep apart a larger amount of savings and invest it intelligently, by using a longer

period of time. The turnover rate in investments should exceed the inflation rate

and cover taxes as well as allow you to earn an amount that compensates the risks

taken. Savings accounts, money at low interest rates and market accounts do not

contribute significantly to future rate accumulation. While the highest rate come

from stocks, bonds and other types of investments in assets such as real estate.

Nevertheless, these investments are not totally safe from risks, so one should try to

understand what kind of risks are related to them before taking action. The lack of

understanding as how stocks work makes the

Furthermore, inflation has served to increased awareness of the importance of

financial planning and wise investing. More Inflation is a worry for each and every

individual. Due to Inflation, value of your money in future will decrease. To Cope

up this, Investors wants to invest their money and earn certain rate of return which is

more then rate of Inflation. Having clear reasons or purposes for investing is critical

to investing successfully.



2.8 TYPES OF INVESTORS:

Individual investors: (including trusts on behalf of individuals, and umbrella

companies formed for two or more to pool investment funds)

Collectors of art, antiques, and other things of value

Angel investors, either individually or in groups

Venture capital funds which serve as investment collectives on behalf

of individuals, companies, pension plans, insurance reserves, or other funds.

Investment bank

Investment trusts and

Real estate investment trusts

Where one can invest?

Securities Market:

Money Market

Bond Market

Mortgage Market

Stock Market

Foreign Exchange Market

Derivatives Securities Market

Depository Institutions:

Commercial Banks



Other Financial Institutions:

Insurance Companies

Securities firms and investment banks

Mutual funds

Finance companies

Pension funds

2.9 Investment Decisions are majorly affected by following factors.

1. Amount available for investment

2. Available time period for investment.

3. Return Expected

4.Investors risk bearing Capacity.



III. RESEARCH METHODOLOGY

Research methodology is way to systematically solve the research problem. Research,

in common terms refers to a search for knowledge. Research methodology consists of

different steps that are generally adopted by a researcher to study the research

problem along with the logic behind them.

3.1 RESEARCH DESIGN:

A research design is utilized to structure the research, to indicate that all the major

elements of the research have been designed to work together. There are numerous

types of research designs that one may decide to use. The study follows the survey

method, questionnaire and data analysis. This project report also used some statistics

tools like frequency, percentage etc.

Research design is the plan, structure and strategy of investigation

conceived so as to obtain answers to research question.

There are two types of research design. One is exploratory research and

other is descriptive research

3.2 EXPLORATORY RESEARCH:

The researcher studied the company report, talked to the customers and employee

of the company. We identified that inspite of providing various opportunities

customers may not be aware of derivative and commodity products.

3.3 DESCRIPTIVE RESEARCH

Survey method was adopted for the research programme which is conducted to

collect the data for he further analysis.

3.4 DATA SOURCES:

The study is mainly based on the data collection from primary as well as

secondary sources.



Primary data: The primary data has got collected through the systemized

Questionnaire and which is composed of fifteen questions and were asked the

respondents to fill it.

Secondary data: Data existing in the form of Books, Internet, Catalogues etc.

3.5 SAMPLING DESIGN:

Definition of population: All the customers of CELEBRUS STOCK EXCHANGE.

Sampling procedure: A non probability sampling technique i.e. convenient sampling

procedure was adopted.

Sampling size: A sample of 100 customers were selected from the target population

for the study.

3.6 RESEARCH METHODOLOGY:

Research design : descriptive in nature.

Data source : data collected from primary and secondary sources.

Primary data : primary data is collected from the respondent through

these structured questionnaires.

3.7 SAMPLING DESIGN:

Sample size : 100

Sampling procedure : Convenience sampling

3.8 STATISTICAL TOOLS USED:

Sample tools that are used for analyze purpose, they are follows:

Percentage method

Graphs and Charts.



IV. SECTOR ANALYSIS

Stock market is like a ocean, people are like a fishes in the ocean, and the stock

market sector is really a big sector in India.

It is composed of two major stock exchanges

1. BSE

Bombay stock exchange located in the Dalal street, Kala ghoda, Mumbai,

Maharashtra, India.

Established in 1875, the BSE is the Asia’s first stock exchange. It claims to be the

world’s fastest stock exchange, with median trade speed of 6 microseconds .

The BSE world’s 11th

largest stock exchange with an overall market capitalization of

1.7 trillion as of January23, 2015. More than 5500 companies are publicly listed on

the BSE.

2.NSE

The National Stock Exchange is India’s leading stock exchange covering cities and

towns across the country. NSE was set up by leading institutions to provide a modern,

fully automated screen – based trading system with national reach.

The stock exchange has brought about unparalleled transparency, speed & efficiency,

safety and market integrity. It has set up facilities that serve as a model for the

systems, practices and procedures.



4.1 SIZE OF THE INDUSTRY

Indian shares are on a roll and that’s bringing the country’s stock exchanges

onto the global stage.

On Friday, the market capitalization, or total value of listed companies, on Mumbai’s

BSE exchange reached a new record of 100 trillion rupees ($1.6 trillion.) and now it is

$2 trillion right now (2016).

The market value of companies listed on Indian stock exchanges has risen by more

than 40% over the past year, as investors are betting that Indian companies will

benefit from a turn in the local economy and policies expected from the new

government that came to power in May.

The BSE stood 10th among the world’s stock exchanges as measured by market value

at the end of October, according to data from the World Federation of Exchanges.



4.2 GROWTH RATE

The Indian share market is growing really very well as compared to other developed

countries like USA, England and others.

As our GDP growth is 7.9% right now which means there is a greater contribution

from share market too. And the value of Indian stock market is $2 trillion now and

there is a stronger assumption that it is going to be $6 trillion economy.



4.3 GOVT. REGULATIONS

Indian Capital Markets are regulated and monitored by the Ministry of Finance, the

Securities and Exchange Board of India and The Reserve Bank of India.

The Ministry of Finance regulates through the Department of Economic Affairs -

Capital Markets Division. The division is responsible for formulating the policies

related to the orderly growth and development of the securities markets (i.e. share,

debt and derivatives) as well as protecting the interest of the investors. In particular, it

is responsible for

institutional reforms in the securities markets,

building regulatory and market institutions,

strengthening investor protection mechanism, and

providing efficient legislative framework for securities markets.

Securities Contracts (Regulation) Act, 1956;

SC(R)A aims at preventing undesirable transactions in securities by regulating the

business of dealing therein by providing for certain other matters connected therewith.

This is the principal Act, which governs the trading of securities in India.

The term "securities" has been defined In the SC(R)A. As per Section 2(h), the

'Securities' include:

1. Shares, scripts, stocks, bonds, debentures, debenture stock or other marketable

securities of a like nature in or of any incorporated company or other body corporate

2. Derivative

3. Units or any other instrument issued by any collective investment scheme to the

investors in such schemes.

4. Government securities



5. Such other instruments as may be declared by the Central Government to be

securities.

6. Rights or interests in securities



SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI)

Securities and Exchange Board of India (SEBI) setup as an autonomous

regulatory authority by the Government of India in 1988 "to protect the interests of

investors in securities and to promote the development of, and to regulate the

securities market and for matters connected therewith or incidental thereto". It is

empowered by two acts namely the SEBI Act, 1992 and the securities contract

(regulation) Act, 1956 to perform the function of protecting investor's rights and

regulating the capital markers.

Securities and Exchange Board of India (SEBI) regulatory reach has been

extended to more areas and there is a considerable change in the capital market.

SEBI's annual report for 1997-98 has stated that through out its six-year existence as a

statutory body, it has sought to balance the twin objectives of investor protection and

market development. It has formulated new rules and crafted regulations to foster

development. Monitoring. and surveillance was put in place in the Stock Exchanges in

1996-97 and strengthened in 1997-98.

SEBI was set up as an autonomous regulatory authority by the government of

India in 1988 "to protect the interests of investors in securities and to promote the

development of, and to regulate the securities market and for matters connected

therewith or incidental thereto". It is empowered by two acts namely the SEBI Act,

1992 and the securities contract (regulation) Act, 1956 to perform the function of

protecting investor's rights and regulating the capital markets.

OBJECTIVES OF SEBI

The promulgation of the SEBI ordinance in the parliament gave statutory status to,

SEBI in 1992. According to the preamble of the SEBI, the three main objectives are:-

To protect the interests of the investors in securities

To promote the development of securities market.

To regulate the securities market.



FUNCTIONS OF SEBI

Regulating the business in Stock Exchange and any other securities market.

Registering and regulating the working of Stock Brokers, Sub-Brokers, Share

Transfer Agents, Bankers to the issue, Trustees to trust deeds, Registrars to an issue,

Merchant Bankers, Underwriters,

Portfolio Managers, Investment Advisers and such other Intermediaries who may be

associated with securities market in any manner.

Registering and regulating the working of collective investment schemes including

Mutual Funds.

Promoting and regulating self-regulatory organizations.

Prohibiting fraudulent and unfair trade practices in the securities market. Promoting

investor's education and training of intermediaries in securities market. Prohibiting

Insiders Trading in securities.

Regulating substantial acquisition of shares and take-over of companies

Calling for information, understanding inspection, conducting enquiries and audits of

the Stock Exchanges, Intermediaries and Self-Regulatory organizations in the

securities market.



4.4 GLOBAL VIEW

Today the stock market is growing faster in the world as lot of investment are coming

to stock market right now.

Key overseas exchanges are selected from the three major time zones:

• Asia-Pacific —

Australian Securities Exchange (ASX, including Sydney Futures Exchange (SFE)),

China Financial Futures Exchange (CFFEX), Korea Exchange (KRX), Osaka

Securities Exchange (OSE), Shanghai Stock Exchange (SHSE), Shenzhen Stock

Exchange (SZSE), Singapore Exchange (SGX), Tokyo Stock Exchange (TSE);

• Europe — Borsa Italiana (BI, part of LSE Group), Bolsas y Mercados Españoles

(BME, Spanish Exchange), Frankfurt Stock Exchange (FWB, part of Deutsche

Börse (DB) Group), Eurex Exchange (Eurex, part of DB Group), NYSE Euronext

European exchanges (Euronext), London Stock Exchange (LSE), NASDAQ OMX

Nordic Stockholm (Stockholm), NYSE Liffe of NYSE Euronext;

• Americas — BM&FBOVESPA, CBOE Holdings Inc (CBOE), CME Group

(CME), NASDAQ OMX US exchanges (NASDAQ), New York Stock Exchange

(NYSE), TMX Group (TMX) in Canada.

In the last 25 years, the stock markets have shown exceptional growth. The economic

importance of stock markets in developed countries, taking the capitalisation of listed

domestic companies as an indicator relative to the national product has developed.

Overall, global stock market capitalisation has tripled in the nineties, and has

undergone much faster progress than bank deposits and credit. At the same time,

direct involvement of families in stock holding has increased extraordinarily in the

developed countries compared to the available income in all countries (except for

Japan). The significance of equitisation will be “to underpin the system of market

capitalism itself, by giving more people a bigger and more direct stake in the success

of their companies... The new century is set fair to be the age of equity”



4.5 MAJOR PLAYERS

Today’s Broking Industry is really composed of many number of Players or stock

broking companies.

And there happening a lot of competition between them in order to get the

maximum customers and sustain in the market.

1. Angel Broking

2. Karvyi Stock Exchange

3. India Infoline

4. HDFC Securities

5. ICICI Direct Securities

6. India Bulls Securities

7. Kotak Securities

8. Motilal Oswal Industry

9. Share Khan Securities

10. Venture Securities



4.6 MARKETS

1. NSE:- National Stock Exchange

2. BSE:- Bombay Stock Exchange

3. MCX :- Multi Commodity Exchange

4. MCDX:- Multi Commodity Derivative Exchange

5. NCX:- National Commodity Exchange

6. NCDX:- National Commodity Derivative Exchange



5. 3C’s Company, Competitor and Customer

5.1 Company Profile

Table No.2

BASIC DETAILS

Incorporation Date

29/11/2006

Registration Number

020045

Company Type

Public

Listing Type

Unlisted

Industry Category

Business Services

Company Nature

Company limited by shares

Company Sub Category

Indian Non-Government

Company

Registering Authority

Registrar of Company-Ernakulam

CAPITAL DETAILS

Authorized Capital

Rs. 9,00,00,000

Paid-up Capital

Rs. 7,70,36,160



DIRECTORS & KEY PERSONS

Director Name Appointment Date Designation

GEORGE IYPE 29/11/2006 Managing Director

DENNY KALAPURACKAL

KURIEN

25/10/2013 Director

GIBY MATHEW 09/05/2013 Director

JOSE THOMAS 20/03/2009 Director

JERRY MATHEW 20/03/2009 Director

BINU KOTTAPPATTU

ALEXANDER

11/12/2006 Director

E P MADHUSUDHANAN 25/10/2013 Secretary



5.2. ORIGIN, SCOPE and SCALE

Historical Background

CELEBRUS Capital Ltd.is a public company registered on 29/11/2006. The company

has an authorized capital of Rs 9, 00, 00,000 and paid-up capital of Rs 7, 70, 36,160.

Its registered office is situated at 27/540, Iiird Floor, Eak Towers, Main Avenue,

Panampilly Nagar., Kochi, Kerala, India - 682036.

The status of company in the records of Registrar is active which means that it is

actively doing all its filing with the Registrar.

5.2A About The Company

Commodity Online Group operates a network of four companies and a stream of

businesses focused on research, technology, commodity futures, stocks, currencies,

and spot market trading in commodities in India. The flagship project of Commodity

Online Group is www.commodityonline.com, arguably the world’s largest

information portal on commodities. Commodity Online has set up one of India’s

largest research houses on commodities, based out of Ahmedabad.

The Group has offices in Kochi, Ahmedabad, Mumbai, Bangalore, Chennai and

Coimbatore. Group of Companies are;

Commodity Online India Limited

Commodity Online India Ltd (COIL), through its flagship information portal,

www.commodityonline.com has emerged as a leading provider of information,

research, technical analysis, advisories and data services on commodities to a growing

population of traders and investors in India and around the world.

Check out: www.commodityonline.com



Celebrus Commodities Limited

Celebrus Commodities Limited, a fully-owned subsidiary of Commodity Online India

Limited, is a member of three national commodity exchanges in India—the Multi

Commodity Exchange (MCX), the National Commodity and Derivatives Exchange

(NCDEX) and the National Multi Commodity Exchange (NMCE).

Celebrus Commodities has set up a network of business associates across India and

has emerged as a major commodity brokerage offering a state of the art trading

platform and 24/7 customer service.

5.2B Celebrus Capital Limited

Celebrus Capital Limited, a fully-owned subsidiary of Commodity Online India

Limited, is a member of three national stock exchanges in India--the National Stock

Exchange (NSE), the Bombay Stock Exchange (BSE) and the MCX Stock Exchange

(MCX-SX). Celebrus Capital carries out trading in stocks and currencies across India,

offering unparalleled customer service and a state of the art, next-generation trading

platform.

5.2C Tranzmedia Netvision Private Limited

Tranzmedia Netvision Pvt Ltd, a fully owned subsidiary of Commodity Online India

Limited. Tranzmedia is an offshore software development, web solutions and content

management c ompany with offices in Kochi and Ahmedabad. Tranzmedia provides a

range of technology services for the media industry across the globe, building and

managing news portals, e-commerce web sites, commodity trading back office

solutions and mobile applications.



5.2D Vision and Mission

Build a technology company on commodities: create the right technology to connect

commodities to the financial markets Link commodities with people: everyone loves

commodities. Life without commodities is simply not possible. Strive to connect

commodities with people with

The latest technology Create a brand centric model: create quality financial products

around Commodity Online to create a global brand.



5.2 E Management Team

George Iype is an accomplished journalist-turned entrepreneur who founded the

Commodity Online Group, providing diversified services to commodity investors in

India. A major part of his eventful career in journalism was spent at Rediff.com India

Ltd (1996-2006), where he served as Managing Editor bringing several new

innovations into news and content presentation on web. At Rediff, George enriched

the site content with coverage of major news events from across India, United States,

Latin America, Pakistan and Sri Lanka, interviewed leading Indian politicians and

ministers. Presently, he is Managing Director and Chief Executive Officer of

Commodity Online Group that runs a network of four companies: Commodity Online

India Limited, Celebrus Commodities Limited, Celebrus Capital Limited and

Tranzmedia Netvision Pvt Ltd. These companies operate in research and information

services, trading in commodities, equities, currencies and spot commodities market,

IT services related to web portals and back office solutions in trading. A post-graduate

in English Literature, George Iype did his PG Diploma in Mass Communication from

New Delhi before launching his career in journalism with Patriot and later Sunday

Observer.



Binu Alex

Co-founder & Director, Commodity Online Group

Binu Alex Co-founder of Commodity Online Group, is a successful journalist-

turned-entrepreneur who covered a wide range of issues for the print, web and

broadcast media – especially Radio. He worked/produced stories for various radio

stations including BBC Radio, Radio France International, Free Speech Radio News

and its affiliate stations and a host of other radio stations in US and Europe. Covered

some of the most tumultuous history of Gujarat – Earthquake and Sectarian violence –

at the expense of being slit at one point of time and later wrote on technology, gadgets

and inventions. Moved to journalistic entrepreneurship because he loves journalism

although fed up with journalists. Addicted to technology, Binu Alex in his present

role as Director of Commodity Online Group, is a leading guide and motivator for the

in-house software team to implement new innovative solutions on both web and

mobile platforms.



Giby Mathew

Director, Commodity Online Group

Giby Mathew is Director of Commodity Online Group, leading the all-India sales

and marketing of its trading division under Celebrus brand. Giby is one of the

pioneers of new age broking houses in South India, especially Kerala with over two

decades of experience in both Capital and Commodity markets. One of the founding

partners of BSE-listed JRG Securities Litd, Giby has been instrumental in shaping

commodity business right from its nascent stage. His core focus on trading initiatives

in equities, commodities and currencies has helped Celebrus emerge as a leading

name in India's broking industry. Giby briefly worked as a journalist in New Delhi,

but soon left the world of words to get deep into the big world of financial services in

India. When he is not in office, Giby spends quality time at his 10-acre farmhouse in

the verdant backwaters of Kerala.



5.3 Marketing and Branding

5.3.A Market Size / Growth / Share

The CELEBRUS exchange is now getting popular as it’s market share

is increasing and now it has covered 10% of the market all over india.

And Belgaum city it’s market share is 22% as stated by the CELEBRUS

Capital branch manager Mr. Vijay Sambrekar.

Sharekhan Limited,

Angel Broking Limited,

And Reliance Money have covered the remaining market.



5.3.B Products and Brands

Equities

The Indian stock market provides a linkage between the savings and the preferred

investment in various entities. CELEBRUS provides a number of strategies available

in Equities like Investment, Day Trading, Swings Trading, Systematic Investment,

etc.

Features of Systematic Investment in Equities

Simple and disciplined approach towards investment

Investment possible with small amount

Reduces risk because of Rupees Cost Averaging

Flexibility in terms of Quantity Based or Amount Based Systematic

Investment

Flexibility intervals like Daily/ Weekly/ Fortnightly/ Monthly/ Quarterly Basis

Payment can be routed through ECS/ Direct Credit Mandate/ Post Dated

Cheques

Commodities

Commodities form a unique asset class. In periods of high inflation, assets like bonds

and stocks tend to suffer; but the value of commodities tends to rise. So, it is advisable

to invest part of your portfolio in commodities, like your own hedge fund.

CELEBRUS helps you with trading strategies in bullion, metals and agri

commodities.

Currencies

Currency or Foreign Exchange hedge is a method used by companies to eliminate or

hedge foreign exchange risk resulting from transactions in foreign currencies.

Hedging is an effective tool for importers and exporters. But even beginners can trade

in currencies with as low as Rs 5000. A CELEBRUS currency futures tips helps you

profit from Rupee/ Dollar price fluctuations.



Research

Our strength is in our approach. Research came to us much before trading which

forms our backbone of services. Decisions have to be very much calculated to

minimise risks. Markets are unreliable but we can always take a decision to tame the

market through better research and trading patterns. By joining CELEBRUS, you get

access to cutting edge research. Commodity online technical calls and advisories,

exclusively tailor-made for our trading clients, are unique and one of its kind in India.

Agri Business Consultancy

Agri Service

Advances Licensing Services & Declines

Advances & Declines

Equity Trading Services

Equity

Currency Derivative Service

Currency

Flow Regulators

Also Deals In

Commodity Advisory

Currency Trading

Gainers & Losers

New High/Low

Commodity

Trade



PROCESS OF ACCOUNT OPPENING

LEAD MANAGEMENT SYSTEM (LMS) / REFERENCES

CONTACT

TELEPHONE AND PRESONAL VISIT

APPOINTMENT

DEMONSTRATION

AGREE DISAGREE (CLOSE)

DOCUMANTATION

FILLING THE FORM

SUBMISSION THE FORM

LOGIN OF THE FORM

SENDING THE ACCOUNT OPENING KIT TO THE CUSTOMER FOR

TRADING



5.3C Major Customer / Segments

1. Equity

2. Commodity

3. Currency

4. Gold and Silver (Bullion)

5. Crude oil



3.4D USP ( UNIQUE SELLING PROPOSAL)

CELEBRUS CAPITAL Ltd. Brokerage Rates (Table No.3)

SEGMENT BROKERAGE

Equity (Intraday) 2% or min 5 paisa per share,

whichever is higher

Equity (Delivery) 2% or min 5 paisa per share,

whichever is higher

Equity Futures 2% or min 5 paisa per share,

whichever is higher

Equity Options 2% or min 5 paisa per share,

whichever is higher

Currency Futures 2% or min 5 paisa per share,

whichever is higher

Currency Options 2% or min 5 paisa per share,

whichever is higher

Commodity 0.02% - 0.05% for intraday and 0.04 –

0.05% for carry forward



CELEBRUS CAPITAL LEVERAGE OR MARGIN (Table No.4)

SEGMENT. MARGIN

Equity (Intraday) Upto 15 to 20 time for intraday

Equity (Delivery) 4 to 5 times for delivery

Equity Futures Upto 1 times

Equity Options Upto 1 times

Currency Futures Upto 1 times

Currency Options Upto 1 times

Commodity NA.

CELEBRUS CAPITAL TRADING PLATFORM OR

SOFTWARE (Table No.5)

Trading Platform or Software ODIN.

Web based. trade.celebrus.in

FUND TRANSFER SERVICE (Table No.6)

Number of bank linked to account 2+

Mode of payment (withdrawal

and deposit)

Cheque no info about other

modes

Fund pay in processing time No info.

Fund payout processed(working

days)

1 day



TURNOVER & OTHER CHARGES (Table No.7)

Equity (cash and delivery) Not specified Based on risk

factors

Equity futures Not specified Based on risk

factors

Equity options Not specified Based on risk

factors

Currency futures Not specified Based on risk

factors

Currency options Not specified Based on risk

factors

Commodities Not specified Based on risk

factors



5.4. HR Functions

5.4.A Organization Structure

Chart No.2

Relationship Manager

Dealers

Other employees

Branch Manager



5.4.B Organization Development

1. Development of industrial relations

2. Training given to employees based upon their performance

3. Reward system

4. Every month meeting

5. Counselling for employee

6. Recruitment and promotions

Direct recruitment

Promotions

7. Maintaining staff strength



5. 5HRM Practices

5.1A Operations

o Performance driven work culture

o 2. Maintain customers of retained employees

o 3. Cost saving on Hiring & Training employees

o 4. Employee Retention

o 6. Satisfied customers

o 7. Satisfied employees

o 8. Increased Revenue & higher profit

o 9. Higher Productivity

o 10. Transparent system



5.5B Work Flow

The following is the decision making hierarchy of officials in a regional rural

banks

Board of director

Chairman & managing director

General manager

Chief manager/regional manager

Senior manager

Managers

Officers/assistant manager

Assistants



5.5C Technology

The CELEBRUS CAPITAL Ltd. Has adopted a stronger technology in it’s

organization.

It is composed of;

1. 24*7 hours of services

2. Stronger Data Base

3. Standardized Analytical Machines

4. Standardized Risk Management System

5. 24*7 money transfer services

And many more.



5.5D Quality System

CELEBRUS CAPITAL LTD. Is using the RMS which means Risk

Management System. It explains the investors demographic features and their

investment volume and their risk bearing capitacity and their credit

worthiness.

This is the quality system that the CELEBRUS CAPITAL Ltd. Is using right

now. Totally there are 5 RMS in the company right now.



5.6 Competitors

1. Indiabulls Securities

Indiabulls Securities is the leading brokerage firm in India, which started

functioning in the year 2000. The company's businesses include real estates,

home loans, power, securities and IT. Indiabulls securities is headquartered in

Gurgaon, Haryana and employes over 4,000 people. Across the nation,

Indiabulls securities operates through its 450 branches. The company provides

its services both through off-line and on-line channels. Indiabulls Securities

boasts of running one of the most efficient and fastest trading base in India.

Rs. 1200 is the trade account opening fees at Indiabulls Securities.

2. Sharekhan Limited

Sharekhan Limited was also established in 2000 and is one of the top

brokerage firms in India today. With its head office in Mumbai,

Maharashtra, Sharekhan is present in around 450 cities in India and it is

serving over 9,50,000 customers through its 429 outlets across the country.

Sharekhan has two branches in Oman and UAE as well. The services provided

by Sharekhan Ltd. include equities trade execution, portfolio management,

distribution of mutual funds and commodities, structured products and

insurance. One can open their trade account with Sharekhan Ltd. with Rs. 750

(Classic account) and Rs. 1000 (Trade Tiger).

3. Angel Broking Limited

Angel Broking started its operations in 1987 and has its headquarters in

Mumbai, the commercial capital of India. Angel Broking is involved in the

businesses such as equity trading, portfolio management services,

commodities, mutual funds, IPO, Life Insurance, Investment Advisory and

Depository Services. Angel Broking has more than 5,500 terminals in around

400 branches across India.



4. Reliance Money

Reliance Money is retail brokerage company and a subsidiary of the

prestigious Reliance Industries. It was founded in 1987 and is based in

Mumbai, Maharashtra. On a nationwide level, Reliance Money runs its

business through 150 brnaches and around 2,000 employees. Reliance Money

provides services related to mutual funds, fixed income, gold, portfolio

management services and structured products. Rs. 750 are charged by

Reliance Money to open a Demat or a trade account.

5. Kotak Securities Limited

With its headquarters in Mumbai, Kotak Securities Limited started its

operations in 1994. It is subsidiary of Kotak Mahindra Bank. Over 5.58 lakh

customers have an account with Kotak Securities. It has 450 branches in

around 352 cities in India. The service base of Kotak Securities consists of

stock broking, portfolio management services and other customer oriented

financial services

.

6. India Infoline Services

Like most of the other brokerage firms, India Infoline Services has its

headquarters in Mumbai. It was started in 1995 and serves more than 2 million

customers. The company has around 650 locations in India and abroad. It is

present in Sri Lanka, Mauritius, Singapore, Hong Kong, Dubai, Switzerland,

UK and USA. Rs. 750 is the amount required to open a demat account with

India Infoline Services.

7. HDFC Securities

HDFC Securities is based in Mumbai and over 1 million customers have an

account with it. The business services that HDFC Securities provides are

mutual funds, equity, IPO, national pension system, NRI offerings, insurance,

fixed deposits, bonds and loans. HDFC Securities has over 100 branches in

India and has got over 1,500 employees working for it.



8. ICICI Direct

ICICI Direct is a subsidiary of the leading private bank the ICICI Bank and is

headquartered in Mumbai, Maharashtra. It is involved in businesses such as

equity, mutual funds, ETF, life insurance, fixed deposit, bonds and loans.

ICICI Direct has around 300 branches across the country and over 2,000

employees. A trade account at the ICICI Direct can be opened with a fees of

Rs. 750.

9. Bajaj Capital

A relatively new player in the brokerage market, Bajaj Capital started in 2008

and is based in Mumbai. It operated via 150 branches on pan India basis and a

strong base of around 2,500 employees. It serves its customers through

services related to mutual funds, fixed deposits, bonds, insurance, real estate

and stocks.

10. Aditya Birla Money

Aditya Birla Money is the brokerage arm of the Indian conglomerate the

Aditya Birla Group. It is headquartered in Mumbai, Maharashtra and has 150

branches across the nation. The business solutions provided by Aditya Birla

Money concern broking and distribution, wealth management, corporate and

treasury services, real estate advisory and online money management. A total

of 2,500 employees contribute to the operations of Aditya Birla Money.



5.6A CSR Activities

1. It has done many awareness camps in Belagavi city

2. Has done many Events for the purpose of creating the awareness about stock

market.



5.7 SWOT ANALYSIS OF CELEBRUS CAPITAL LTD.

(My observation)

1. STRENGTHS

1. Big client base

2. In-house research house

3. online as well as offline trading

4. Online IPO/ MF services

5. Share shops

6. Transparent

7. User friendly tie ups with Major banks

8. Excellent order execution speed and reliability

2. WEAKNESS

1. Lack of awareness among customers

2. Less focus on customer retention

3. Less Exposure

3. OPPORTUNITIES

1. Diversification

2. Product modification

3. Improve Web based trading

4. Provide competitive brokerage

5. Concentrate on PMS

6. Focus on Institutional investors

7. Concentrate on HNI’s (high net worth investor)



4. THREATS

1. Aggressive promotional strategies by close competitor like Share Khan,Religare,

Angel Broking and India bulls.

2. More and more players are venturing into this domain, which can further reduce the

earning of CELEBRUS.

3. Stock market is very volatile, risk involves is very high.



6. Data Analysis and Interpretation

6. Data Analysis:

Primary Data

It has got collected through an instrument called questionnaire and I have taken

responses from 100 respondents and the details are presented in a soft copy.

Secondary Data

The secondary data has got collected from the Internet and from the company

websites and reading the theory from the internet / Google.



1. Gender level of investors

Table No.8

Male 53

Female 47

Chart No. 3

Interpretation:-

This study explains that the gender level of investors out of 100 respondents, 53% of

investors are Males followed by 43% are females.

And it is clearly depicting that the Males are more interested in investing in the share

market and they are having more risk bearing capacity as well as more financial

strongness.

53%

47%

Gender Level

Gender level of investors Male Female



2. Age level of investors

Table No. 9

20-24 11

24-34 32

34-44 36

45 and above 21

Chart No. 4

Interpretation:-

The above study explains that the age group of plays a very important role in the

investment activities.

As it has shown that the age group of 24-34 and 34-44 are showing the higher share in

the investment activity in the share market and they have covered the 68% of the

market followed by 20-24 and 24-34 have covered the 32% of the market.

It is clearly depicting that the middle and average aged investors are investing in the

share market.

11%

32%

36%

21%

Age Level of Investors

Age level of investors 20-24 25-34 35-44 44 and Above



3. Education level of investors

Table No. 10

Below or PUC 7

Under graduate 36

Post Graduate 43

Others 14

Graphs No.1

Interpretation:-

The above study showing that the maximum number of investors are under graduates

and Post graduates which means 79% of investors comes under this category

Followed by below PUC holders are 7% and others are 14%.

It is clearly explaining that the more educated people are investing more in the share

market and so education plays a very important role in the share market because it

needs a lot of knowledge.

Education level of

investors

Below or Puc

UG. PG & Above Others

Series1 7 36 43 14

0 5

10 15 20 25 30 35 40 45 50

Axi

s Ti

tle

Education Level



4. Occupation of investors

Table No.11

Business 11

Employee 52

Housewife 13

Professionals 18

Others 0

Chart No.5

Interpretation:-

The above study shows that the business people are 17%, employees are 52%,

Housewife are 13%, Professionals are of 18%.

It shows that the employees of government and private sectors are investing more in

the share market because they are having sufficient money in their hand and interested

in making money out of it.

And professional are of 18% in the share market and they are earning highest money

in the share market because they are having professionalism in the investment activity

and they are using professional attitude in the investment activity.

17%

52%

13%

18%

0%

Occupation

Business Employee Housewife Professionals Others



5. Annual income of investors

Table No.12

Upto 1 lakh 11

1 lakh to 1.99 25

2 to 2.99 lakh 47

3 lakh and above 17

Graph No.2

Interpretation:-

The above study is showing that out of 100 respondents 11% are having upto 1 lakh

income, 25% are having 1 to 1.99 lakh income, 47% are having 2 to 2.99 lakh income

and only 17% percent people are having income level of more than 3 lakh.

It is showing that Maximum investors are of middle class level and it clearly explains

that the middle class people are much interested in making money in the share market.

11

25

47

17

Annual Income of Employees

Upto 1 lakh 1 lakh to 1.99 lakh

2 to 2.99 lakh 3 lakh and above

Annual Income Level

Series1



6. Number of dependents in a family

Table No.13

1 2

2 18

3 43

4 34

5 and above 3

Chart No.6

Interpretation:-

The above study shows that 2% are having 1 dependents, 18% are having 2

dependents, 43% are having 3 dependents, 34% are having 4 dependents and only 3%

are having 5 dependents.

It explains that Maximum investors are having 3 dependents and they are having good

attitude towards the share market because they are having less risk as compared the

family having 5 and 4 dependents.

2%

18%

43%

34%

3%

Number of dependents in family Number of dependents in a family of investors

1

2

3

4

5 and above



7. Family income of investors

Table No.14

Below 5 lakh 22

5 lakh to 10 lakh 30

10 lakh to 15 lakh 31

15 lakh and above 17

Graph No.3

Interpretation:-

The above study shows that Out of 100 22 investors are having 5 lakh family income,

30 are having 5-10 lakh, 31 are having 10-15 lakh and 17 are having 15 lakh and

above family income.

It shows that income level of family influence a lot on investors when they go for

investment because if they got a loss in their investment their family can manage the

expenses of the investor.

Family income of investors

5 lakh 5-10 lakh 10-15 lakh 15 lakh and above

22

30 31

17

Family Income

Series1



8. Investment options of investors

Table No.15

Equity 53

Commodity 5

Currency 20

Gold and Silver 12

Others 1

Chart No.7

Interpretation:-

The above study shows that 53% percent investors are investing on Equity, 5% are

investing in commodity, 22% are investing in currency, 13% are investing in Gold

and silver and only 1% investing in others.

So Equity is a best source for investing in the stock market as it gives better returns

and there is possibility of getting a good returns and we can trade there for intraday or

delivery trader or as a positional trader.

58%

6%

22%

13%

1%

Investment Options

Investment options of investors) Equity

Commodity Currency

Gold and Silver Others



9. Why do they prefer the above investment option?

Table No.16

Good returns 20

Assured returns 42

High returns 27

No risk involved 4

Graph No.4

Interpretation:-

The above study is showing that 20% people invest in stock market because of good

returns, 42% said that they invest because of Assured returns, 27% people said that

they invest because of High returns and 4% people said that they invest because of No

risk involved.

So it is depicting that maximum people go for investment for assured returns in the

share market.

Why do they prefer the above

investment option?

Good returns

Assured returs

High returns

No risk involved

20

42 27

4

Reason for prefering the above option

Series1



10. How much percentage of total income that they invest?

Table No.17

Below 5% 8

6 to 10% 25

10 to 15 36

16 to 20 31

Chart No.8

Interpretation:-

The above study is showing that out of 100 respondents, 8 invest below 5% of their

income, 25 people invest 6 to 10% of their income, 36 people invest 10 to 15% of

their income and 31 people invest 16 to 20% of their income.

So maximum number of investors investing 15 to 20% of the income in the share

market.

8%

25%

36%

31%

Percentage of investment

How much percentage of total income that they invest?

Below 5%

6% to 10%

10% to 15%



11. What type of risk that they expect when they invest in share

market?

Chart No.18

No risk 12

Nominal risk 38

Moderate risk 44

Higher risk 06

Graph No.5

Interpretation:-

This above study is explaining that 12% people expect No risk, 38% people expect

Nominal risk, 44% people expect Moderate risk and only 6% people expect Higher

risk when they invest in the share market.

So here it is explaining that maximum people are ready to take moderate risk followed

by nominal risk, no risk and only 6% of people are ready to take higher risk in order

earn maximum returns in the share market.

12

38 44

6

What type of risk that they

exect when they invest in the

share market?

No risk Nominal risk Moderate risk Higher risk

Type of Risk

Series1



12. How long do they hold the securities?

Table No.19

For a day 3

For a week 27

For a month 48

For a year and above 22

Graph No.6

Interpretation:-

The above graph is showing that 3% people invest for a day and 27% people invest

for a week, 48% people invest for a month and 22% people for year and above.

Normally investors hold their securities for a short term and long term for getting the

good returns and only 27+3 mean 30% of the people go for speculative based trading

in order to earn maximum profit in a day or a week.

How long do they hold the

securities?

For a day For a week For a month For a Year & Above

3

27

48

22

Time Frame of Investment

Series1



13. Are they ready for limited losses in expectation of higher long

term returns?

Table No.20

Strongly Disagree 10

Disagree 48

Neither agree or disagree 27

Strongly agree 15

Graph No.7

Interpretation:-

The above study shows that out of 100 respondents said 10% have told that they are

not at all ready for limited losses in expectation of higher returns, 48% are not ready

and

27% have told they neither agree or disagree and only 15% of the respondents told

that they are ready for expectation of losses in expectation of higher returns.

It explains that keeping money is safe is better than getting higher returns is the

opinion of maximum investors.

10

48

27 15

0

10

20

30

40

50

60

Are they ready for limited losses in

expectation of higher long

term returns?

Strongly Disagree

Disagree Neither Agree or Disagree

Strongly Agree

Series1



14. If their investments were fall in value by 15% over a one year

period, what will they do?

Table No.21

Withdraw all money from

share market

11

Take out some money and

move for safer investment

29

Wait until market recovers

and then consider

32

Stick to investment 16

Invest more money in the

same investment

12

Graph No.8

Interpretation:-

The above shown graph explaining that out of 100 respondents 11 people told that

they withdraw all the money from the share market, 29% people told that they take

some amount of money and go for safer investment, 32% people told that they wait

until the market recovers & they consider later and 16% people have told that they

stick to investment and 12% people told that they invest more in the same investment

option.

If their investoments …

Withdraw all

their …

Take out

some …

Wait until the marke…

Stick to investm

ent

Invest more

mone…

Series1 11 29 32 16 12

0 10 20 30 40

Axi

s Ti

tle



6.3 Results and Discussion;

The researcher has discussed the above results with respect to the study.

The first objective was To study the risk bearing capacity on the basis of demographic

profile and the questions asked to know the demographic profile are;

1. Gender

2. Age level

3. Educational qualification

4. Occupation

5. Annual Income

6. No. of dependents in Family

7. Family Income

So the study has shown that the Male investors are having the larger population (53%)

with refers to the investment in the share market and Females are having (47&)the

less population with respect to investment and I found that there is growing trend in

the share market that females are doing investments.

As we see that Males are more financially strong and they are having money in their

pockets and they will go for investment.

The Middle aged people will have more risk bearing capacity as the general tendency

is that the middle age is a working age and they are earning the money and want to

earn more money out of it.

Educational qualification plays a very important role in the investment attitude,

because higher the education level will increase the investment.

Occupation is also very important aspect in the share market and the study has

revealed that the highly educated people are engaged in the investment activity.



The annual Income of an individual will decide their investment term, value and the

risk they are ready to take for earning the good money.

The number of dependents also influence on them to take an investment activity

because the dependents expenditure influence on their investment.

The family income also influence on the investment activity and the risk level.

The researcher has used the second objective which was to understand the risk profile

of the investors and the questions asked were;

1. Which investment option do you prefer to invest?

2. Why do you prefer the above investment option?

3. How much percentage of total income that you invest?

4. What type of risk do you expect when you invest?

5. How long do you hold the securities?

As the study has revealed that the maximum number of investors go for the Equity

investment as it has known as a low risk involved and good returns providing option

in the share market and they normally invests 15 to 20% of their annual income and

maximum responded that they are not ready to bear the risk and some have told that

they are ready to take the nominal risk and only few people responded that they are

ready to take the higher risk.

And the higher risk takers are Professional investors, Chartered accounts and ICWAs

as they are highly skilled in the share market and they invest for the mid long term

period followed by short term investors.

The researcher has used the third objective which was to know the investors attitude

towards risk and the questions asked are;

1. Are you ready for limited losses in expectation of higher long-term returns?



2. If your investments were to fall in value by 15 per cent over a one-year period,

what will you

do?

As the researcher’s study concerned that most of the respondents are not ready to take

the limited losses in expectation of higher long – term returns and they think that

keeping money safe is more important than getting higher returns.

And only some percent of investors responded that they are ready to take the limited

losses in expectation higher long – term returns.

And they have told that they will take out their money back if the value of

investments fall down by 15% in value over one year period. It is clearly explaining

that the investor’s attitude changes with respect to the risk that they face during the

investment.

Finally the study reveals that maximum number of investors (58%) are having

conservative risk profile as they are not ready to take losses in expectation of higher

returns,

Some people are not having ability to bear the losses and only 15% investors are

having the Aggressive risk profile as they are ready to face the fluctuations in the

share market and bear the losses.



7. FINDINGS AND CONCLUSIONS

7. FINDINGS

Based on the study the researcher has computed the data based on the data analysis

and interpretation the findings of the study are given below;

1. Most of the respondents are male and denotes that they are having more risk

bearing capacity

2. Most of the respondents are investing in the equity investment option as it

gives a good returns and there is low risk.

3. Most of the respondents invest 10 to 20% money out of their income

4. Most of the respondents agreed the safety is the main concern in the

investment

5. Most of the respondents are ready to take either Nominal risk or Moderate risk

while doing the investment.

6. Most of the respondents generally go for a long term basis

7. There is a situation where investments fall in value by 15% most of the

respondents are not aggressive and they fear in further decrease in the value

of the investment.

8. Most of the respondents were disagree to take the limited losses in expectation

of higher returns

9. This study shows that most of the respondents are having cautious and

conservative risk profile.



7.2 CONCLUSION:

As the above study is concerned the researcher conclude that investment is the very

cautious and complex activity in the share market and the investors have got the

different attitude towards their investment behaviour with respect to their risk profile.

The most of the investors have got the conservative risk profile and only few are

having the aggressive risk profile.

Most of the investors go for a mid and long term period and most of them were

disagreed to take limited losses in expectation of higher returns and finally the

researcher conclude that maximum number of investors are having conservative risk

profile and few of them got the aggressive risk profile.



8. SUGGESTIONS

Suggestions:

Based on the findings the researcher suggested the suggestions below

1. The researcher suggest the company that it should deal with the investors

according to their risk profile

2. Most of the investors responded that they are cautious with respect to their

investment

3. Most of them have responded that keeping money is safer than getting higher

returns is their main motto and so CELEBRUS CAPITAL Ltd. Has to deal

with them very much cautiously. If they fail to do so they will loose the

valuable customers and the valuable business

4. Finally the researcher suggest that they should give them the quick updates

pertaining to the fluctuations in the market and their by protect their customers

money.



IX. LEARNING EXPERIENCE

The learning experience with the CELEBRUS CAPITAL LTD. Belagavi was

unforgettable, the researcher had been there for the two months and learned quite a

lot about the Stock Broking Industry and it’s day to day operations right from getting

opening the accounts to the settlement of the trading and also learned about “The

Investment Pattern on The Basis of Investors Risk Profile” as it helps to know the

investment pattern of investors and how their attitude changes with respect to the

volatility in the market.

The researcher has done lot of study and research about the Indian share market and

has got to know that the Indian share market is operating really well and daily NIFTY

is doing 2,00,000 crore business which is depicts that the trading volume, and daily

lot of money is going as a tax for he government.

Certain things which researches learnt the part of his project conducted in the factory

during two months. are,

Professional attitude

Team Spirit

Investment Pattern

Good communicational skill

Culture of the organization

Challenging work

Training

Analysis of stocks of different companies in a same sector

About RMS Risk Management System



Bibliography

Text book

Reasearch methods (Thakur publication)

Web sites:

www.google.com

www.moneycontrol.com

www.markecalls.com

www.nse.in

www.bse.in

www.celebrus.in

www.commodityonline.com

Readings;

The Wall Street Survivor

The Beginners

http://www.moneycontrol.com/

http://www.markecalls.com/

http://www.nse.in/

http://www.bse.in/

http://www.celebrus.in/

http://www.commodityonline.com/



QUESTIONNAIRE ON

“INVESTMENT PATTERN ON THE BASIS OF INVESTORS

RISK PROFILE”

I am Mr. Arihant K Zunjarvad Studying in MBA rd

Semester at Department of

Business Administration, Rani Channamma University, Belagavi.

As part of MBA Curriculum, I am doing the project on “INVESTMENT PATTERN

ON THE BASIS OF INVESTORS RISK PROFILE” and I seek your kind

assistance in completing the attached questionnaire which would take few minutes

from your valuable time.

(Your responses will be treated as strictly confidential)

Section – A

1. Name of the respondent :-

________________________________________(optional)

2. Gender Male Female

3. Age

20-24 25-34 35-44 45 and above

4. Education

Below PUC Under Graduate Post Graduate and Above If any

(Specify) _________

5. Occupation

Business Employee House wife Professionals

Others(specify)________

6. Annual Income

upto 1 Lakh 1- 1.99 Lakh 2-2.99 lakh 3 lakh and above



7. No. of dependents in Family

1 2 3 5 and Above No Dependents

8. Family Income

<5 Lakh 5-10 lakh 10-15 Lakh 15 Lakh and Above

Section - B

9. Which investment option do you prefer to invest? (You can tick multiple options)

Equity Commodity Currency Gold and Silver If any

(Specify)_________

10. Why do you prefer the above investment option?

Good returns Assured returns High returns No risk involved (you

can tick multiple options)

11. How much percentage of total income that you invest?

Below 5% 6 % - 10 % 11 % - 15% 16-20 %

12. What type of risk do you expect when you invest?

No risk Nominal Risk Moderate risk Higher Risk

13. How long do you hold the securities?

For a day For a week For a month For year and above

14.Are you ready for limited losses in expectation of higher long-term returns?

Strongly Disagree Disagree Neither or Disagree Agree

Strongly Agree



15. If your investments were to fall in value by 15 per cent over a one-year period,

what will you do?

Withdraw all money from share market

Take out some money and move to safer investment

Wait until the market recovers and then consider

Stick to investment

Invest more money in the same investment

Date:-____________

Signature:_________

Thank You

Investment Pattern on the basis of investors risk profile

Economy & Finance