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PROJECT SUBMITTED TO TRIDENT ACADEMY OF CREATIVE TECHNOLOGY
IN PARTIAL
FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE
OF
BACHELOR OF BUSINESS
ADMINISTRATION
By
Jyoti Jawahar Jena
(Registration Number:09BBA216)
(2009-2012)
External Guide: Internal Guide:
Mr. Amit Mishra Ms.Evelina Mohapatra
Unit Manager Faculty of Management
Studies,TACT
BMA Wealth Creators Limited. Chandaka Industrial Estate
Bhubaneswar Bhubaneswar-751024
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I here by declare that the project report entitled Customers perception
towards investment in Equity Market with reference to BMA Wealth
Creators Limited,submitted in partial fulfilment of the requirements for the
degree of Bachelor of Business Administration to TRIDENT ACADEMY OF
CREATIVE TECHNOLOGY, is my original work and not submitted for the award
of any other degree, diploma, fellowship, or any other similar Title or prizes .
Place: Bhubaneswar Jyoti Jawahar Jena
Date: Reg No: 09BBA216
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DECLARATION
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This is to certify that the project entitled Customers perception towards
investment in Equity Market with reference to BMA Wealth Creators
Limited is the bonafide research work carried out by Mr. Jyoti Jawahar Jena ,
student of TRIDENT ACADEMY OF CREATIVE TECHNOLOGY,Bhubaneswar,
during the year 2011-2012, in partial fulfilment of the requirements for the award
of the Degree of Bachelor of Business Administration and that the project has not
formed the basis for the award previously of any degree, diploma, associate ship,
fellowship or any other similar title.
Place: Bhubaneswar
Date: Signature of the Guide
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CERTIFICATE
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I take this opportunity to express my deepest gratitude to all those people,
without those spontaneous support, guidance, encouragement and
understanding, this project would never had reached completion.
It was my privilege to work with BMA Weal th Creators L td . I am
indebted to Mr. Amit Mishra (Unit Manager) who acted as philosopher
and guide through all the stages of completion of the project.
Mere words of gratitude will never suffice to their valuable guidance,
patience and faith shown in my work.
I would also like to avail this opportunity to express my sincere thanks
and profound gratitude to my project guide,whose valuable knowledge and
guidance have maid me complete this project successfully.
I acknowledge the timely help extended by all my colleagues and allthe
unmentioned names from the concerned field.
It has been rightly quoted that each milestone turned over, is an outcome of
mans sincere endeavors. Though, at the start of any ambitious project, one
always encounters certain difficulties. However, overcoming those difficulties,
completing the project as well as making it a success, greatly depends on the
encouragement, inspiration and help given by many people. We too, without
the encouragement, inspiration and by taking help of others, would not have
been able to complete our research project, successfully.
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ACKNOWLEDGEMENT
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This research project was a great source of learning and a good experience as
it gives us an opportunity to correlate the theoretical knowledge which we had
gained from our teachers and well wishers, with practical facts and aspects.
Though fulfiling the ambitions one always encounters with certain difficulties,however overcoming these difficulties and making the project a scuccess entirely
depends upon the encouragements, inspirations and help rendered by the staff
members of the organization.
Jyoti
Jawahar Jena
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This is to certify that the project work entitled Customers Perception towards
Investment in Equity Market with reference to BMA Wealth Creators
Limited is an authentic record of the project work done by JYOTI JAWAHAR
JENAofTRIDENT ACADEMY OF CREATIVE TECHNOLOGYduring the period
2011 in this organization under my guidance and supervision for the partial
fulfilment of the course, Bachelor of Business Administration.
Date: Mr. Amit Mishra
Unit Manager
BMA Wealth Creators Limited,
Bhubaneswar.
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CERTIFICATE
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The study titled Customers perception towards investment in Equity
Market with reference to BMA wealth creators Ltd. was carried out with
the aim of locating the usefulness of investment planning while making any
investment decision. It is seen in India that, most of the investors do not possess
any technical knowledge of investment.
Financial planning means achieving a financial target with a given time frame. It
covers many things like desired degree of financial independence, retirement
objectives, children education, taxes, and cash flow problems, not having a
savings strategy, etc. In other words, the project is all about analysing the
benefits of investment planning before making an investment decision. The main
tool that is decided to collect data and reactions is a questionnaire. Then those
data is analyzed using some statistical tools like Pie chart and Bar Diagram.
Through my study, I have found out that the investors reacted late to the market
and as a result- many of them fallen into huge losses due to market volatility.
Again, investments are not done only for investment purpose. Some investors
invest to save tax as the only purpose behind it. Bank FDs are also a popular
method of investment. Now while analyzing the values and services that drives
the clients of a company to stay with them are mainly correctness of information
and timely attention to them. Relationship also plays a major role in this regards.
About concluding the report, it is demonstrated how a good investment planning
can do wonders. It is recommended in the report that the company should take
due initiatives to develop the knowledge of its clients which could be done
through organizing events like investors meets.
I hope BMA Wealth Bhubaneswar will recognize this as well as take more
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Executive Summary
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references from this project report.HR Department has been given more
emphasis for the study of project because it is the only sector where all type of
age group,Income class and different level of peole are represented.
According to the market study, Bhubaneswar is one of the potential market for
the equity trading because the number of account holder is very less in the city
due to some drawbacks of this facility. The people do not want to avail this
facility and the current users of the account are also not using this facility. If the
company removes their drawbacks then it is sure the company will get great
response from the customer.
Investment is nothing but the saving of an individual, which is remind after
satisfying day-to-day necessity. He invests it somewhere to earn some returns
onthe saving. The investors has many choices to invest his money e.g.
SavingDeposit, Fixed Deposit, Insurance Policy, Company Deposits, Capital
Market,Properties and many other among all the option he have to choose one or
two toinvest his money and take care of not loosing the money in whatever he
invest.
I have visited number of new investors who want to invest the market, the questionnaire, and
formal meeting and normal decision with the clients helped me for collecting valuable
information for the study of market and investors. It is also useful for me to reach to the
conclusion of the project. Most of them are in the age bracket of 30 40 years, I think this
age group people are very enthusiastic to do anything and want to achieve things in shorter
span of time.
I hope BMA Wealth Creators will recognize this as well as take more references
from this project report is to know the drawbacks of their euity trading account
and the need and wants of the customer.
The company can get the knowledge of other organizations facility which the
BMA Wealth Creators can offer to the customers. The company can get the
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knowledge that which is most potential income and occupation group of
customer for offering trading account/demat account. After analyzing feedback
the conclusion has been made that bhubaneswar is one of the potential market
for customer but company has to give special emphasis on customers demand
for the accounts and services.
Therefore they attracted towards stock market. Because of volatile stock
marketgives higher return as well as losses to the investors.
The end result I found after doing the whole exercise is that the
investorsexpectations are very high they want more returns from short and
smallinvestment.
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TABLE OF CONTENTS
Subject Items Page
No.
Cover page 1
Declaration 2
Internal Guide Certificate 3
Acknowledgement 4
External certificate 6
Executive Summary 7
Table of Contents 10
Introduction 11
Literature Review / Theoretical Background 12
Company / Product Profile 16
Brief Profile of Products / services of the above said company
Data Analysis and Interpretation 31
Research analysis 38
Summary and Conclusion 48
Questionnaire 50
Bibliography 53
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A stock market or equity market is a public entity (a loose network of economic
transactions, not a physical facility or discrete entity) for the trading of company
stock (shares) and derivatives at an agreed price; these are securities listed on a
stock exchange as well as those only traded privately.The size of the world stock market was estimated at about $36.6 trillion at the
start of October 2008.
The stocks are listed and traded on stock exchanges which are entities of a
corporation or mutual organization specialized in the business of bringing buyers
and sellers of the organizations to a listing of stocks and securities together. The
largest stock market in the United States, by market capitalization, is the New
York Stock Exchange (NYSE). In Canada, the largest stock market is the Toronto
Stock Exchange. Major European examples of stock exchanges include theAmsterdam Stock Exchange, London Stock Exchange, Paris Bourse, and the
Deutsch Brse (Frankfurt Stock Exchange). In Africa, examples include Nigerian
Stock Exchange, JSE Limited, etc. Asian examples include the Singapore
Exchange, the Tokyo Stock Exchange, the Hong Kong Stock Exchange, the
Shanghai Stock Exchange . In Latin America, there are such exchanges as the
BM&F Bovespa and the BMV.
In India Bombay Stock Exchange (BSE) benchmark, Sensex & National Stock
Exchange (NSE), the 50-stock Nifty index.
The market in which shares are issued and traded, either through exchanges or
over-the-counter markets. Also known as the stock market, it is one of the most
vital areas of a market economy because it gives companies access to capital
and investors a slice of ownership in a company with the potential to realize
gains based on its future performance.
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Relevance of the Study:
Learn How to Invest
Discover How to Buy and Sell Stocks.
Uncover All the Investing Secrets.
Invest Profitably.
Determine Your Financial Future.
Learn Important Equities Rules.
You Need Expert Financial Advice.
Invest in Learning because Knowledge IS POWER.
Define YOUR Investing Objectives.
Objective:Customer perception towards Equity market basic objective .
That is funding to companies listed on that stock exchange.
Companies float their IPOs on exchange and in return give buyers right of
ownership and annual dividends (sometimes twice a year).
Companies sell their right of ownership to traders /investors /FIIs etc and in return
generate capital for their companies.
Stock Exchanges also attract lots of FIIs which is good for country economy.
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Equity sharing:
Equity sharing, also known as shared ownership or in the US as housing equity
partnership (HEP), allows a person to purchase a share in their home even if they
cannot afford a mortgage on the whole of the current value. It is generally used
in affordable housing, providing a "third way" of land tenure between home
ownership and renting.
There are various detailed methods to implement equity sharing, and it is
implemented in over a hundred community land trusts in the United States. Theremaining equity share may be held by the house builder, by a private investor or
by a landlord such as a housing association. In some models the resident pays
rent on that share.
Brokerage Firm:
A brokerage firm, or simply brokerage or broker in context, is a financial
institution that acts as a stock broker. Brokerage firms serve a clientele of
investors who trade public stocks and other securities
Stock Broker
A stock broker or stockbroker is a regulated professional broker who buys and
sells shares and other securities through market makers or Agency Only Firms on
behalf of investors. A broker may be employed by a brokerage firm.
Services provided by Stock Brokers:
A transaction on a stock exchange must be made between two members of the
exchange. An ordinary person may not walk into any stock exchange and ask to
trade stock. Such an exchange must be done through a broker.
There are three types of stock broking service.
Execution-only, which means that the broker will only carry out the client's
instructions to buy or sell.
Advisory dealing, where the broker advises the client on which shares to
buy and sell, but leaves the final decision to the investor.
Discretionary dealing, where the stockbroker ascertains the client's
investment objectives and then makes all dealing decisions on the client's
behalf. Similar roles
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Roles similar to that of a stockbroker include investment advisor, and financial
advisor. A stockbroker may or may not be also an investment advisor, and vice
versa.
Acting as a principal
Stockbrokers also sometimes or exclusively trade on their own behalf, as a
principal, speculating that a share or other financial instrument will increase or
decline in price. In such cases the term broker makes little sense and the
individuals or firms trading in principal capacity sometimes call themselves
dealers, stock traders or simply traders. There are many other types of traders
within capital markets, for example trading within the foreign exchange market.
Stock Market Index:
A stock market index is a method of measuring a section of the stock market.
Many indices are cited by news or financial services firms and are used as
benchmarks, to measure the performance of portfolios such as mutual funds.
Addendum to the definition
An index may also be considered as an instrument (after all it can be traded)
which derives its value from other instruments or indices. The index may be
weighted to reflect the market capitalization of its components, or may be a
simple index which merely represents the net change in the prices of the
underlying instruments.Most publicly quoted stock market indices (like the two quoted below) are
weighted.
Types of indices
Stock market indices may be classed in many ways. A 'world' or 'global' stock
market index includes (typically large) companies without regard for where they
are domiciled or traded. Two examples are MSCI World and S&P Global 100.
A 'national' index represents the performance of the stock market of a given
nationand by proxy, reflects investor sentiment on the state of its economy.
The most regularly quoted market indices are national indices composed of the
stocks of large companies listed on a nation's largest stock exchanges, such as
the American S&P 500, the Japanese Nikkei 225, the Russian RTSI and the British
FTSE 100.
The concept may be extended well beyond an exchange. The Wilshire 5000
Index, the original total market index, represents the stocks of nearly every
publicly traded company in the United States, including all U.S. stocks traded on
the New York Stock Exchange (but not ADRs or limited partnerships), NASDAQ
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and American Stock Exchange. Russell Investment Group added to the family of
indices by launching the Russel Global Index.
Equity sharing in the United Kingdom:
There are two forms of equity sharing in the UK, public sector and private sector.
Public sector equity sharing implies some form of taxpayer subsidy and is seen
by government as a useful tool of social policy, for example in allowing more first
time buyers to access property ownership.
The government in England facilitates shared equity chiefly through the Homes
and Communities Agency (HCA), currently under the banner of HomeBuy. This
covers a range of low cost home ownership options; all aim to help households
earning up to 60,000 p.a. to buy a home that they could not otherwise afford.
Some are targeted at first-time buyers and key workers.
Private sector shared equity or, as it is sometimes known, investor shared equity,
operates quite differently in that there is no element of taxpayer subsidy.
Instead, third party investors provide the difference between the buyer's deposit
and (typically) a 75% mortgage, in return for an equity stake in the property and
a rent. These schemes are run over 5 or 10 years (sometimes with a 'hardship'
extension), meaning that at the end of the relevant period, the owner has to buy
out the equity stake at the relevant percentage of the then market value. There
is generally no penalty on early redemption or partial buy-backs. Thus, equity
sharing can be seen as a step up to full ownership of a property.
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BMA
Group
Profile
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In the 1920s, Mr Bhuramal Agarwalla, founder of the BMA Group, had made a
foray into the obscure energy industry with a mission to assume eminence in the
coal mining business. With his vision and character, he managed to place the
business on a higher pedestal. By adhering to bi-pronged philosophy of risk-
taking and fostering an ethic-based environment, he cautiously promoted
excellence through quality to meet the expectations of both domestic and
international clients. Taking inspiration from this, the group has scaled manyheights venturing into Refractorys, Smelting, Ferrous Alloys, and Coke is leading
by example.
In the age of Second Generation Reforms, the company has successfully passed
down its mantle to the Fourth Generation. The group has successfully fused
traditional methods with modern mantra of management to come out with flying
colours. The group has taken multifarious initiatives, some of which have already
yielded dividends. We are manufacturers and exporters of ferrous alloys,
refractorys etc. The holistic production process combines a perfect balance
between product availability, manufacturing procedure, quality supply chain and
a geographical dispersion of marketing and operations. Over the years the BMA
Group has become a single reliable source for resources and a Group you can
count on for delivery and quality. Service to the customer goes beyond the sale
of products by providing technical advice for economic and efficient applications
and maintenance for products supplied by the group companies.
Group Companies are:
National Refractories
(Prop. Snowtex Udyog Ltd)Refractories Unit West Bengal
The Behar Potteries Ltd. Refractories Unit West Bengal
Anjanery Ferro Alloys Ltd. Ferro Alloys Unit Jharkhand
Maithan Alloys Ltd. Ferro Alloys Unit West Bengal
Maithan Smelters Ltd. Ferro Alloys Unit Meghalaya
Premium Fuels Metallurgical Coke Unit West Bengal
Corporate Social Responsibility should be the inherent motive of every business
house. The Group BMA takes its commitment seriously and has imbibed this
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BMA GROUP PROFILE
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2. Ferro Alloys
3. Coal & Coke
responsibility into its mission. It actively participates in community development
through three ways: philanthropy, civic leadership & public policy and grass root
efforts. The company provides generous support & leadership to a wide range of
organizations that cater to cultural, civic, environmental, health and human
services.
(Our highest quality of Refractory Products are widely
used in the industries.)
Companies under Refractories:-
National Refractories (Prop. Snowtex Udyog Ltd) - An ISO 9001:2000
company
The Behar Potteries Ltd.
(We manufacture wide range of Ferro alloys to meet the need of each buyer.)
Companies under Ferro Alloys:-
Anjaney Ferro Alloys Ltd.
Maithan Alloys Ltd.- An ISO-9001:2000 company
Maithan Smelters Ltd.
(We produce good quality hard Coke and metallurgical Coke.)Companies under Coal and Coke
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Different ventures of BMA Group
1. Refractories
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4. Steel Product
5. Export and Import
6. Financial Services
Premium Fuels ( Prop. Snowtex Udyog Ltd.)
( Manufacturing & exporting of stainless steel & allied products that are tested to
comply with international standards.)
(Primarily engaged in import & export of products like : Alumina Silicate Bricks,
Special Refractories, Low Carbon Silico Manganese & more)
Companies under Export and Import
BMA International
Our Export and Import Items:
1. Refractory
Alumina Silicate Bricks
Insulation Bricks Monolithics
Special Refractories2. Ferro Alloys
High Carbon Ferro Manganese
High Carbon Ferro
Manganese(LowPhos)
Medium Carbon Ferro Manganese
Low Carbon Ferro Manganese High Carbon Silico Manganese
Medium Carbon Silico
Manganese
(Focused on offering diversified financial services to corporate &
individuals.)
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http://www.bmaind.com/financial-services.htmlhttp://www.bmaind.com/alumina-mortars-castables.htmlhttp://www.bmaind.com/alumina-silicate-bricks.html#special-refractorieshttp://www.bmaind.com/maithan-smelters-ltd.html#high-carbon-ferro-manganese-lahttp://www.bmaind.com/maithan-smelters-ltd.html#high-carbon-ferro-manganese-lahttp://www.bmaind.com/maithan-smelters-ltd.html#high-carbon-silico-manganesehttp://www.bmaind.com/financial-services.htmlhttp://www.bmaind.com/alumina-silicate-bricks.html#special-refractorieshttp://www.bmaind.com/maithan-smelters-ltd.html#high-carbon-ferro-manganese-lahttp://www.bmaind.com/maithan-smelters-ltd.html#high-carbon-ferro-manganese-lahttp://www.bmaind.com/maithan-smelters-ltd.html#high-carbon-silico-manganesehttp://www.bmaind.com/alumina-mortars-castables.html7/29/2019 Jay on Line Trading
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BMA Financial Services primarily focuses on offering diversified financial planning
services to corporate & individuals. Our spectrum of services include financial
planning, advising, executing, monitoring of investments & more. With our team
of financial consultants & experts we ensure to deliver customized solution to all
our clients.
BMA Wealth Creators - The A to Z of Wealth Creation Techniques
As Wealth Creators, we work towards understanding your financial goals and risk
profile. Our expertise combined with thorough understanding of the financial
markets results in appropriate investment solutions for you.
Extending our expertise, to fulfil all your investment needs.
We offer a wide range of financial services and solutions through our varied
services.
Wealth Management Services
Investment Advisory Services
Securities Broking Equities and
Derivatives
Distribution of Financial Products
Marketing of Equity and Mutual
Fund IPO Commodities Broking
Our expertise in each of these areas, help you achieve your financial objectives.
We provide full service functions, which include:
Planning
Advising
Executing
Monitoring your investments
Our corporate entities are represented by
BMA Stock Broking Pvt. Ltd.
It holds corporate membership in National Stock Exchange Ltd, Bombay Stock
Exchange Ltd. and Central Depositories Securities Ltd.
BMA Commodities Pvt. Ltd.
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It holds corporate membership in commodities exchange of NCDEX and MCX. It is
also is SEBI approved AMFI registered Mutual Fund advisory and intermediary.
Time to shed your worries.
In the present day scenario, there are way too many options that can be rather
confusing. The key is to decide well. Making the correct choice will ensure the
realization of all your dreams.
With BMA, you can at least forget about your financial worries. We with the
correct knowledge of the market and years of experience behind us will help you
invest your money in the right avenues. So that you can rest assured as your
money grows.
All you have to worry about now is ways to utilize the wealth and create the
perfect picture of happiness for you and your loved ones.
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Wealth
Creators
Corporate
Profile
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A premier financial services organisation providing individual and corporate with
customized financial solutions. We work towards understanding your financial
goals and risk profile. Our expertise combined with thorough understanding of
the financial markets results in appropriate investment solutions for you. At
Wealth Creators we realize your dreams, needs, aspirations, concerns and
resources are unique. This is reflected in every move we make with and for you.
We have deep appreciation for the Value of building an everlasting relationship
with YOU. BMA Wealth Creators Pvt., Ltd. was formerly known as BMA Stock
Broking Pvt., Ltd. and changed its name in July 2007
Our financial services corporate entities are represented by
BMA WEALTH CREATORS LTD. - which holds corporate membership in
National Stock Exchange Ltd, Bombay Stock Exchange Ltd. and Central
Depositories Securities Ltd
BMA COMMODITIES PVT. LTD. - This holds corporate membership in
commodities exchange of NCDEX and MCX. It is also is SEBI approved
AMFI registered Mutual Fund advisory and intermediary.
We inherit the legacy of BMA group which has been one of the dominant entities
in Ferrous and Ferro Alloy industry in India. The BMA Group has created its niche
in by promoting successful ventures in the fields of coal mining, refractory, steel
and Ferro alloy. The strive to achieve excellence and dynamic growth has been
possible through optimum mix of technology, customer orientation, best business
practices, forging alliances, high quality standards and proactive business
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CORPORATE PROFILE
BMA WEALTH CREATORS
LIMITED
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culture. A premier financial services organisation providing individual and
corporate with customized financial solutions. Our expertise combined with
thorough understanding of the financial markets results in appropriate
investment solutions for you. Currently we've presence in 1650 location PAN
India. Presently company has 5,000 employees in all over India.
Management Team of BMA Wealth Creators Limited
MISSION - To be a premier financial supermarket providing integrated
investment services.
VISION - To provide integrated financial services building investor wealth and
confidence.
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Managing Director and Chief Executive
Officer
Anubhav Bhatter
Director Avinash Agarwal, Sudhanshu
Agarwal.COO Saikat GangulyHead of Operations and RMS and
Director
Shiv Kumar Damani
Vice President and Head of Franchisee
Development
Asit Kumar Ghosh
MISSON &
VISION
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Services of BMA Wealth Creators Limited
Wealth Management Services
Investment Advisory Services
Securities Broking Equities and Derivatives
Distribution and Marketing of Equity and Mutual FundIPO
Commodities Broking
Depository Participants
Life and General Insurance Services
Sales and Distribution of BMA
Wealth Creators
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Wealth Services Management
BMA Wealth Creators Pvt., Ltd. operates as a financial services organization in
India. It provides individual and corporate financial and investment solutions.
They give their customer path so that they can efficiently increase their wealth.
Expert team of BMA Wealth Creators always suggest their customer so that they
can invest their money in such a way that it will make their wealth healthier.
Investment Advisory Services
Under BMA Wealth Creators Limited, it delivers advisory services to a cross-
section of customers. The service is backed by a team of dedicated and expert
professionals with varied experience and background in handling investment
portfolios. They are continually engaged in designing the right investment
portfolio for each customer according to individual needs and budget
considerations with a comprehensive support system that focuses on trading
customers' portfolios and providing valuable inputs, monitoring and managing
the portfolio through varied technological initiatives. This is made possible by the
expertise it has gained in the business over the years. Covering the latest of
market news, trends, investment schemes and research-based opinions fromexperts in various financial fields.
Securities Broking Equities and Derivatives
BMA Wealth Services Pvt. Ltd is also gives the service of Security Broking,
Equities and derivatives for their customer.
Distribution and Marketing of Equity and Mutual Fund IPO
Company also distributes different financial instruments like Demat Account
and also does the marketing of equity, mutual fund and IPOs for their customers.
Depository Services
Depository is an organisation which holds your securities in electronic (also
known as book entry) form, in the same manner as a bank holds your money.
Further, a depository also transfers your securities without actually handling
securities, in the same day as a bank transfers funds without actually handling
cash. BMA Wealth Creators Limited gives their customer depository services also.
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Commodities Broking
Commodity trading is an investing strategy that involves the buying and selling
of goods that are classified as commodities. There are many similarities between
commodity trading and the trading activity involved with stocks. One key
difference has to do with the difference between what is traded. Company also
gives the services of commodity broking services for customers who want to
trade in commodity.
Insurance Services
BMA Wealth Creators Pvt. Ltd also gives the insurance services to their customer.
Company has tied-up with different insurance companies for insurance services.
Company gives Life Insurance and General Insurance both.
Equity/Share
BMA Wealth Creators deals with different equity and shares of different
companies. Total equity capital of a company is divided into equal units of small
denominations, each called a share. For example, in a company the total equity
capital of Rs 2,00,00,000 is divided into 20,00,000 units of Rs 10 each. Each such
unit of Rs 10 is called a Share. Thus, the company then is said to have 20,00,000
equity shares of Rs 10 each. The holders of such shares are members of the
company and have voting rights. Experts of the company suggest people to
invest their money in a right equity or share so that they can get good return
from that.
Debt Instrument
Company also deals with debt instrument. Debt instrument represents a contract
whereby one party lends money to another on pre-determined terms with
regards to rate and periodicity of interest, repayment of principal amount by the
borrower to the lender.
In the Indian securities markets, the term bond is used for debt instruments
issued by the Central and State governments and public sector organizations andthe term debenture is used for instruments issued by private corporate sector.
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Under all these services BMA WealthCreators deals with
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Derivative
Derivative is a product whose value is derived from the value of one or more
basic variables, called underlying. The underlying asset can be equity, index,
foreign exchange (forex), commodity or any other asset.
Derivative products initially emerged as hedging devices against fluctuations in
commodity prices and commodity-linked derivatives remained the sole form of
such products for almost three hundred years. The financial derivatives came into
spotlight in post-1970 period due to growing instability in the financial markets.
However, since their emergence, these products have become very popular and
by 1990s, they accounted for about two third of total transactions in derivative
products.
Commodity
A market that transacts business with commodities of all nature referred as
commodity markets. Commodity market does not necessarily require you to buy
or sell the commodities but you can even exchange them. Commodity market
works on certain principles. Firstly the trading has to be done only for standard
products. Secondly the transaction takes place through a future contract.
According to this contract the commodities will be sold or bought on a futuredate. However the price at which they are sold will be the price agreed during the
contract. Similarly commodity marketing also makes use of another type of
contract called spot contract. In this contract the goods are to be transferred as
soon as the contract is made.
Mutual Fund
A Mutual Fund is a body corporate registered with SEBI (Securities Exchange
Board of India) that pools money from individuals/corporate investors and invests
the same in a variety of different financial instruments or securities such as
equity shares, Government securities, Bonds, debentures etc. Mutual funds can
thus be considered as financial intermediaries in the investment business that
collect funds from the public and invest on behalf of the investors. Mutual funds
issue units to the investors. The appreciation of the portfolio or securities in
which the mutual fund has invested the money leads to an appreciation in the
value of the units held by investors. The investment objectives outlined by a
Mutual Fund in its prospectus are binding on the Mutual Fund scheme. Mutual
fund is for the customers who does not have the knowledge about share or stock
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market. In that case customer gives the investment amount, what they wish to
invest in share market, to the company and company invest the amount on
behalf of the customer in market. Experts of the company decides where to
invest the money for their customer
Demat Account
Company also provides their customer De mat Account. The term De mat, in
India, refers to a dematerialised account for individual Indian citizens to trade in
listed stocks or debentures. Company provides customer Demat Account facility
who wants to transact in share market. The Securities Exchange Board of India
(SEBI) requires the investor to maintain a Demat account. In a demat account
shares and securities are held in electronic form instead of taking actual
possession of certificates. A Demat Account is opened by the investor while
registering with an investment broker (or sub broker). The Demat account
number which is quoted for all transactions to enable electronic settlements of
trades to take place.
Access to the demat account requires an internet password and a transaction
password as well as initiating and confirming transfers or purchases of securities.
Purchases and sales of securities on the Demat account are automatically made
once transactions are executed and completed.The demat account reduces brokerage charges, makes pledging/hypothecation of
shares easier, enables quick ownership of securities on settlement resulting in
increased liquidity, avoids confusion in the ownership title of securities, and
provides easy receipt of public issue allotments.
It also helps you avoid bad deliveries caused by signature mismatch, postal
delays and loss of certificates in transit. Further, it eliminates risks associated
with forgery, counterfeiting and loss due to fire, theft or mutilation. Demat
account holders can also avoid stamp duty (as against 0.5 per cent payable on
physical shares), avoid filling up of transfer deeds, and obtain quick receipt of
such benefits as stock splits and bonuses.
Fees Involved in Demat Account
There are four major charges usually levied on a demat account: Account
opening fee, annual maintenance fee, custodian fee and transaction fee. All the
charges vary from DP to DP.
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Account-Opening Fee
Depending on the DP, there may or may not be an opening account fee. BMA
Wealth Creators and some private banks, such as ICICI Bank, HDFC Bank and UTI
Bank, do not have one. However, players such as Globe Capital, Karvy
Consultants and the State Bank of India do so. But most players levy this when
you re-open a demat account, though the Stock Holding Corporation offers a
lifetime account opening fee, which allows you to hold on to your demat account
over a long period. This fee is refundable.
Annual Maintenance Charge
Company also charges maintenance charge to maintain Demat Account with the
company. This is charges as yearly basis. This is also known as foliomaintenance charges, and is generally levied in advance.
Custodian Fee
This fee is charged monthly and depends on the number of securities
(international securities identification numbers ISIN) held in the account. It
generally ranges between Rs 0.5 to Rs 1 per ISIN per month. DPs will not charge
custody fee for ISIN on which the companies have paid one-time custody charges
to the depository.
Transaction Fee
The transaction fee is charged for crediting/debiting securities to and from the
account on a monthly basis. The fee also differs based on the kind of transaction
(buying or selling). Some DPs charge only for debiting the securities while others
charge for both. The DPs also charge if your instruction to buy/sell fails or is
rejected. In addition, service tax is also charged by the DPs.
In addition to the other fees, the DP also charges a fee for converting the shares
from the physical to the electronic form or vice-versa. This fee varies for both
demat and remat requests. For demat, some DPs charge a flat fee per request in
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Annual Maintenance Charge
Custodian Fee
Transaction Fee
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addition to the variable fee per certificate, while others charge only the variable
fee.
Apart from all these charges one more charge is involved in share
trading and that is known as:-
Brokerage
Company gives the facility to their customer to sell or purchase stock and other
products of the company. For this facility given by the company they charged
some commission from the customer. This commission is generally known as
brokerage. And also company, who deals with share and all other similar
products, generally known as broking houses.
Rates comparison of BMA Wealth Creators from other companies:-
1. Brokerage Rate
BMA Wealth Creators takes the brokerage as advance for 12 months. As per the
trading doing by the customer their brokerage is being reduced from the advance
brokerage given by them. These rates are different in case of advance brokerage
chosen by the customer. BMA Wealth Creators offers flexibility of low brokerage
as your trade volumes go high to higher.
You Pay(RS.)
Variable Brokerage Time Limit.
Delivery Intraday
1,000 0.40 0.04 12 Months
2,000 0.30 0.03 12 Months
5,000 0.25 0.025 12 Months
10,000 0.20 0.02 12 Months20,000 0.15 0.015 12 Months
25,000 0.10 0.01 12 Months
50,000 0.05 0.005 12 Months
Features:-
Flexibility to choosing slab rate as per your investment pattern.
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Time valid for 12 months.
Trading allowed both in Equity and Commodity.
0
0.005
0.01
0.015
0.02
0.025
0.03
0.035
0.04
0.045
1000 2000 5000 10000 20000 25000 50000
Intraday charges of BMA as per differentslabs
Intraday charges of BMA as
per different slabs
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Brokerage rate of other companies:-
Broking Houses Brokerage forDelivery
Brokeragefor Intraday
trading
Minimum
Monthly
Charges
SBICAP Securities 0.50% 0.10% NIL
Sharekhan 0.03% - 0.50% 0.03% - 0.10% NIL
Motilal Oswal 0.30% - 0.50% 0.03% - 0.15%
5 paisa 0.25% - 0.85% 0.07%
Angel Broking 0.50% 0.02% - 0.03%
ICICI direct 0.75% 0.15%
Indiabulls 0.25% - 0.50% 0.05% - 0.10%
HDFC Securities 0.50% 0.15%
UTI Securities 0.80% 0.15%
Religare 0.20% - 0.30% 0.02% - 0.03%
Reliance Money 0.01% 0.01% card
systemGeogit 0.30% 0.03%
Indiainfoline 0.50% 0.10% -
33
http://www.sbicapsec.com/http://www.sharekhan.com/http://www.motilaloswal.com/http://www.5paisa.com/http://www.angelbroking.com/http://www.icicidirect.com/http://indiabulls.com/http://www.hdfcsec.com/http://www.utisel.com/http://www.religare.in/http://www.reliancemoney.com/http://www.geojit.com/http://www.indiainfoline.com/http://www.sbicapsec.com/http://www.sharekhan.com/http://www.motilaloswal.com/http://www.5paisa.com/http://www.angelbroking.com/http://www.icicidirect.com/http://indiabulls.com/http://www.hdfcsec.com/http://www.utisel.com/http://www.religare.in/http://www.reliancemoney.com/http://www.geojit.com/http://www.indiainfoline.com/7/29/2019 Jay on Line Trading
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Companies who offer variable brokerage rate, in graph representation I
have taken the lower rate.
1. Account Opening Charge
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Name of the Broking House Account Opening Charge
BMA Wealth Creators NILReliance Money Rs.750
Sherekhan Rs.750
India Bulls Rs.900ICICIDirect.com Rs.750
SBI RS.500HDFC Securities Rs.799
GEOJIT FINANCIAL SERVICES Ltd RS.650
5 Paisa Rs.500Religare (3 Types of Account) Plan - R-ACE
Rs.299
Min Margin Required Rs. 5,000
Plan R-ACE LiteRs. 499
Min Margin Required Rs. 5,000
Plan R-ACE Pro
Rs. 999
Min Margin Required 10,000Angel Broking Rs. 740
UTI Securities Rs. 499IDBI Paisa Builder Rs. 499
India infoline Rs. 555Kotak Securities Rs. 750SMC Indian Rs. 499
Way 2 Wealth Rs. 350
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2. Annual Maintenance Charge
Name of the Company Annual Maintenance Charge
BMA Wealth Creators 1st year NIL
2nd year onwards Rs. 300Angel Broking 1st year NIL
2nd year onwards Rs. 300Karvy Rs. 250
Geojit Rs. 300
HDFC Securities 1st year NIL
2nd year onwards Rs. 500
ICICI Direct 1st
year NIL2nd year onwards Rs. 500 (Paper
Statement) and Rs. 450 (Email
Statement)
IDBI Paisa Builder 1st year NIL
2nd year onwards Rs. 350
Kotak Securities Rs. 360
Motilal Oswal 1st year NIL
2nd year onwards Rs. 100
Reliance Money Rs. 200Religare Rs.250
SBI Rs. 400
Sherekhan 1st year NIL
2nd year onwards Rs. 300
Ventura 1st year free
2nd year onwards Rs. 400
Distribution channel of BMA Wealth Creators:-
BMA Wealth Creators limited generally distribute their product through:-
Agents Company reach their customer through their agents. This is one
of the most important distribution channel through that company distribute
their product to the customer.
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Apart from age
Company also gives franchisee to distribute their product more widely. In
Bhuwaneswar in one franchisee is in Shahid Nagar and in one franchisee is
situated in Puri Road.
37
Research
Methodology
Annual Maintenance Char
0
100
200
300
400
500
600
BMAWealthCreators
AngelBroking
Karvy
Geojit
H
DFCSecurities
ICICIDirect
ID
BIPaisaBuilder
KotakSecurities
MotilalOswal
RelianceMoney
Religare S
BI
Sherekhan
Ventura
Annual Maintenance
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RESEARCH OBJECTIVES
1. To know the customers awareness about different financial
product available in the Equity market.
2. To know the type of investment carried out by customers.
RESEARCH METHODOLGY:
Research Methodology is a very organized and systematic medium through
which a particular case or problem can be solved. It is analytical, descriptive
and quantitative research where the comparison between the different types of
investment made by customers in the capital market. The methods of collecting
information employed were mainly primary data collection method.
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RESEARCH DESIGN:
The Research design of this project is descriptive in nature. The sole objective
was to know the characteristics that consumer consider while investment in
capital market. Further researcher also wants the role of influential factors in
consumer decision making process.
SAMPLING PLAN:
An integral component of a research design is sampling plan .Specifically, it
addresses three basic functions:
Whom to survey? (The Sample Unit)
How many to survey? (The sample data)
How to select them? (The sampling Procedure)
Making a census study of entire Bhubaneswar market was impossible on the
account of time and money. Hence sampling became inevitable.
The chalked out sampling plan is as follows:
Sample Unit: The consumers of middle and upper middle class.
Sample Size: 50 consumers
Sampling Procedure: Area sampling procedure was adopted in which the
researcher selected sample from different areas of Bhubaneswar.
Making an overall Bhubaneswar market was impossible for the researcher. The
Researcher took the help from the database of customers maintained by BMA
Wealth Creators Ltd.
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Locations from where the samples were collected
Unit-1 Market Big Bazaar Shopping Mall
Sahid Nagar
Satya Nagar
CRP Sqaure
Residential Apartments
SOURCES OF DATA:
For the research work the researcher has obtained data from two main sources.
Primary data: Structured non-disguised questionnaire, interview
Secondary data: Journals, magazines, newspaper, web sites etc.
QUESTIONNAIRE EVALUATION:
The modes of questionnaire evaluation used by the researcher are
Tabulation:
Through tabulation the responses are shown in a table against total no of
respondents.
Percentage Analysis
The Percentage analysis is a simple technique of counting no of response
and finding its % from its total.
Graphical Bar Representation of Relevant data:
The Responses are shown in bars plotted against the decided respondingfactors.
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LIMITATIONS:
More respondents did not like to spend time in filling the questionnaire as
it was immaterial to them
Some people did not know the benefits of these products.
Most of the answers of the respondents did not base on their knowledge
but just replied because to fill the questionnaire.
Many people did not respond because their hesitation about investment.
Many people are unaware about the company name.
DATA ANALYSIS AND INTERPRETATION:
What is your profession?
Service (27), Business (12), Students (11), Others ()
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Respondents Income level per annum
3,00,000(6)
Family Members
2(25), 3(15), Over 3(10)
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Do you invest?
Yes (41), NO (9)
In which sector you prefer to invest?Private (18), Public (32)
43
41
9
0
5
10
15
20
25
30
35
40
45
Yes No
Do you Invest?
Do you Invest?
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In
which place you prefer to invest?
Equity(4) Mutual Fund(10) ULIP(6)
Bank Deposit(20) Post Office Savings() Bonds()
Insurance(10) Others()
If you are investing in Insurance then which in which Insurance sector you are
investing?
44
0
10
20
30
40
Private
Public
18 32
In which sector you prefer to invest
In which sector you prefer
to invest
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Life Insurance (33), General Insurance (17)
Since
how
many years you are investing?
Below 1 Year (21), 1 to 5 years (17),
5 to 7 years (3), Over 7 Years (0)
What do you want while investing?
Return (25), Safety (16)
45
33
17
If you are investing in Insurance then
which in which Insurance sector youare investing?
Life Insurance
General Insurance
2117
3
0
Since how many years you are
investing?
Below 1 year
1 to 5 years
5 to 7 Years
Over 7 Years
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If you are not investing then what is the reason?
Lack of knowledge (1), No trust over market (2), Prefer to invest in bank(6)
1
2
6
If you are not investing thenwhat is the reason?
Lack of Knowledge
No trust over market
Prefer to invest inbank
Are you aware about BMA Wealth Creators Limited in
Bhubaneswar.
Yes (23), No (27)
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12. If yes then how do you come to know about the company?
Advertisement(7), News Paper(1), Friends/Relatives(15)
7
115
If yes, then how do you come to knowabout the compnay
Advertisement
News Paper
Friends/Relatives
47
Findings andConclusion
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While answering the question regarding income level many people feel
uneasy.
As per the survey I got that out of 50 people 41 people are investing and 9people are not investing.
Within this 30 people 32 says that they prefer to invest in the public sector
rather than private sector.
Out of 50 people 40% people would like to invest in Bank, 20% people
prefer to invest in Insurance and Mutual Fund, whereas 8% people prefer
to invest in equity and 12% people would like to invest in ULIP.
Out of 41 people who invest approx 61% people want good return out of
their investment and 39% people want safety about the money they have
invested
Out of 9 people who dose not invests in the market out of them 66%
people prefer to invest in bank rather than market and 23% people do no
have trust over the market and rest 11% people do not have the
knowledge about investment.
About the awareness about the company I got that out of 50 people 46%
people are aware about the company and rest people are not aware aboutthe company.
Make awareness camps to make people know about the various financial
plans. Instead of just selling financial products, an effort should be taken to make
the people understand what the benefits of such an investment are.
Arrange for camps by taking appointments from the people who actually
wanted to undergo a training program on self-financial planning.
BMA Wealth Creators has to clarify all the rule and regulation of proper handling of
eruity trading at the time of opening of account to the customers. Company has to
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Suggestions
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keep a consistency in their in rule ans regulation in trading division and if they make
any change in any rule and regulation. Company has to inform the customers in time.
Company has to give some alternate facility to those customers who haveaccount and they are using it, so that more and more people will involve in
it, by which these customers can pay more attention on their account.
Today every customer has less time and this facility will give enough scope
to that customer who have demat account in BMA Wealth Creators but
they are not using trading.
BMA Wealth Creators should start and conduct education program with
technical analysis. The company should start some promotional activities
for spreading the awareness in customers and many times the customers
become defaulter due to less information is given by the securities
company to the customers. At that time a negative impression of
company will goes to those customers and it hampers the customer
loyalty. BMA Wealth Creators should try to make their loyal customer
bacause loyal customer will give profit to the organization directly or
indirectly.
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Questionnaire
Sir,
I am a student of, TRIDENT ACADEMY OF CREATIVE TECHNOLOGY,
Bhubaneswar doing a research work on the title Customers Perception
towards Investment in Equity market with reference to BMA Wealth
Creators Ltd. for academic purpose. Kindly fill up the following questionnaire,
which will be used only for academic purpose and will not be divulged to anybody
under any circumstances.
Thank You
Name__________________________________________ Age____________
Address ________________________________________________________
Contact Number__________________________________________________
1. What do you do?
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Service
Business
Students
Others Please Specify_____________________
2. Annual Salary _______________
3. Family Member ______________
4. Do you invest?
Yes No
5. In which sector do you prefer to invest?
Private Public
6. In which place you prefer to invest?
Equity
Mutual Fund
ULIP
Bank Deposit
Post Office Savings
Bonds
Insurance
Others Please Specify _________________
7. If you are investing in Insurance then which in which Insurance sector you are
investing?
Life Insurance
General Insurance
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8. Since how many years you are investing
Below 1 Year
1 to 5 Year
5 to 7 Year
Over 7 Year
9. What do you want while investing?
Return
Safety
10. If you are not investing any where what is the reason?
Lack of Knowledge
No trust over market
Prefer to Invest in bank
11. Are you aware about BMA Wealth Creators in Bhubaneswar?
Yes No
12. If yes then, how do you come to know about the company?
Advertisement
Newspaper
Friends/Relatives
52
Bibliography
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BOOKS
Financial management by D.Chandra Bose.
Financial markets & services by Gordon & Nataranjan .
Security analysis & portfolio management by S.Kelvin.
Financial institution & market by L.M BHOLE .
http://demataccount.com/fees-comparison/
http://demat.sbi.co.in/uploads/files/Revised-schedule-of-charges.pdf
http://www.tracenotes.com/reports/brokers-india.html
http://www.tracenotes.com/reports/brokers-india.html
http://www.bmawc.com/AboutUs.aspx?id=1
http://www.bmawc.com/AboutUs.aspx?id=2&opt=2
http://www.bmaind.com/group-profile.html
http://www.bmaind.com/export-
import.htmlhttp://www.bmaind.com/steelproducts.html
http://www.bmaind.com/financial-services.html
http://www.flame.edu.in/pdfs/fil/presentations/FIL_Stock%20Market.pdf
http://www.bmaind.com/group-profile.htmlhttp://www.bmaind.com/group-profile.html