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CHAPTER - 5
FINDING, CONCLUSION & RECOMMANDATIONS
On surveying various people who are involved in share trading both as trader as well
as investor, we found that brokerage is the most important factor on which people select / opt
a broking house, followed by image , convenience in trading , customer service, features, tips
& suggestion & AMC.
What is interesting to note is the weighted contribution of these factors towards
decision making. Although brokerage leads the pack it has only 19% contribution, and is
closely followed by broking houses image with 18% and convenience in trade with 16%.
AMC & tips & suggestions having only 10% contribution each towards decision making end
up the pack.
MOST IMPORTANT FACTOR WHILE SELECTING A BROKINGHOUSE
AMC
TIPS & SUGGESTION
FEATURES
CUSTOMER SERVICE
CONVINIENCE(IN
TRADE)
IMAGE
BROKERAGE
FACTORS
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On surveying ANGEL BROKING Customer why they opted for same, we got to
know it was because of image ANGEL BROKING carries in the market, followed by its
competitive brokerage, convenience in trade, features, customer service, tips and suggestions,
and AMC.
Angel Broking Continuous increases its growth percentage as shown in the Graph &
becomes one of the Indias Topmost Online Trading Service Provider.
CONCLUSION :-
In online trading ANGEL BROKING have mainly competition with icicidirect.com,
HDFCsec.com, 5Paisa.com India bulls. ANGEL BROKING comes at no. 2 retail broker. It
has an advantage of being in this industry for more than 8 decades. It has launched its website
in 2000 and was among the first player in the online share trading. The ANGEL BROKING
has decided to spend its advertisement budget through four media i.e. Television, Print, Web
and Outlets. Mr. Boman Irani was the first brand ambassador for ANGEL BROKING on
television media. From the above analysis we can point out some points:-
1. ANGEL BROKING account opening charges are little higher than other competitors.
ANGEL BROKING is less flexible to cut down its account opening charges on the
other side; some of the brokers are offering free account opening to High Net Worth
customers.
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2. The charges of Demat account are reasonable at 300 p.a. but India bulls are offering
pool account with no Annual Maintenance charges.
3.
ANGEL BROKING provides trading in NSE, BSE and Derivatives. It also launched
online Mutual Funds & Online IPO Bidding. Arbitrage facility is not available tocustomers.
4. ANGEL BROKING is the only one that does not have any Demat transaction charges
either on buying or selling.
5.
Unlimited toll free calls service is provided to customer in ANGEL BROKING.com.
1. ANGEL BROKING accept offline payment from other banks also but icicidirect.com,
HDFCsec.com clients have compulsion to open an online account.
2.
IPO Online service is better provided in ANGEL BROKING as compared to others.
3. ANGEL BROKING is only broker in which no margin needs to keep.
4. ANGEL BROKING research reports come in client e-mail at free of cost around 5-6
times in a day. But some brokers charged for it and some provide it only at once in a
day, while it is paid in Indiabulls, icicidirect.com and 5paisa.com.
5. In brokerage, 5paisa.com have an edge on others with lowest brokerage .25% on
delivery and .05% on intraday
To sum up, we can say that computerization and automation are not to be avoided.
Technology has been able to make the stock markets accessible to every individual. It has
also led to positive developments in terms of reduced costs and fewer errors. But, as some
experiences have indicated, IT cannot be applied as a panacea for all problems. Regulation
and knowledge dissemination are still important. The use of technology should be preceded
by a detailed study and assessment of all other alternatives. The key to successful use to
technology is the appreciation of its constraints.
RECOMMENDATION :-
We suggest following measures, which ANGEL BROKING could take so as to take
on heavy competition from INDIABULLS and ICICIDIRECT.COM
1. To identify regions where promotions are required. ANGEL BROKING lacks
visibility in northern region where as it is a well known name in western region. Even
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then, its promotional campaign focuses on western region where as northern region is
still waiting for promotional campaigns.
2.
Try to reduce cost, so that benefits can be passed on to customers. Senior managers at
ANGEL BROKING keep on telling that it is difficult to reduce cost, because ofservices we provide. But the fact is, India being a price sensitive market, people at
times go for monetary benefits rather than for long term non- monetary benefits.
3. If charges cant be reduced because of costs involved, make the services customized,
so that services are provided to only those customers who are willing to pay the price
for services they are getting and let the other customers enjoy costs benefits without
getting services.
4.
Concept of margin funding should be introduced, as more and more people are askingfor it.
FINDINGS :-
DEMOGRAPHIC FINDINGS
AGE GROUP
Age group(years) No. of respondents
Below 20 0
20-35 31
36-50 78
51-65 59
Above 65 32
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Figure : 1
Out of total 200 respondents, below 20 years of age were none, 39% of the respondents
falls in the age group of 36-50 years where as 29% were in the age group of 51-65 years and
next 16% falls in the group of more than 65 years.
JOB PROFILE
Category No. of respondents
Service 94
Business 80
Others 26
0
10
20
30
40
50
60
70
80
90
Below 20 20-35 36-50 51-65 above 65
No. of respondents
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Figure : 2
Out of total respondents, most of respondents were from service class and 40 % were
during business and rest of the respondents includes retired person, other people, other
professionals students etc.
ANNUAL INCOME (IN LACS)
Income group No. of Respondents
Less than 1 lac 50
1-5 lacs 93
More than 5 lacs 57
94
80
26
0
No. of respondents
Service
Business
Others
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Figure : 3
Most of the respondents belong to the income group of 1-5 lakh followed by the
respondents belong to income group of more than 5 lakh which is 28% of total respondents
and rest of Respondents belonging to the income group below 1 lakh.
EDUCATIONAL BACKGROUND
Qualification No. of respondentsUnder graduate (U.G) 53
Graduate 79
Post graduate(PG) 55
Others(O) 13
50.00
93
57
0
No. of Respondents
Less than 1 lac
1-5 lacs
More than 5 lacs
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Figure : 4
Most of the respondents were graduate and 26% were post graduate and rest 6% belong
to other category.
Q1. When the respondent were asked their preference of investment, is cash market ,
derivatives market or both, the following respondents were obtained .
Options No. of respondents
Only cash/capital market 76
Only derivative market 21
Both 103
53
79
55
13
0
10
20
30
40
50
60
70
80
90
Under
graduate
Graduate Post graduate Other
No. of respondents
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Figure : 5
Out of 200 respondents amount 52% respondents their fund in cash and derivative
market, 38% investment is only cash market and rest is derivative market.
Q2.When the respondents were asked about the time period for which they are
investing, the following responses were obtained.
Time period No. of respondents
Less than 1 year 251-5 year 97
More than 5 year 78
0
20
40
60
80
100
120
Only
cash/capital
market
only derivative
market
Both
76
21
103
No. of respondents
No. of respondents
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Figure : 6
Out of total 200 respondents 12% respondents were new investors, 48% were investing
for 1-5 year and rest was for more than 5 year.
Q3.When the respondents were asked about proportion of income they invest in shares
and securities, the following responses were obtained.
Investment proportion No. of respondents
Up to 5% 47
5 to 10% 59
10 to 25% 63
More than 25% 31
25
97
78
No of respondents
Less than 1 year
1-5 year
more than 5 year
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Figure : 7
When the respondents asked about the proportions of income they invest in shares and
securities, it was found that most of the (32%) respondents invest 10-25% of their income,
30% of respondents invest 5-10% and 24% of them invest up to 5% and rest more than 25%.
Q4.When the respondents were asked trading frequency, the following responses were
obtained.
47
59
63
31
No. of respondents
Up to 5%
5to 10 %
10 to 25%
more than 25%
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Figure : 8
On analyzing the trading practices it was found that majority, 65% of the investors
trade according to the market 25% trade daily followed by weekly traders 7%.
Q5.When the respondents were asked about trading advice , the following responses
were obtained.
0
20
40
60
80
100
120
140
Daily Monthly Weekly According to
the market
49
13
7
131
No. of respondents
No. of respondents
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Figure : 9
Regarding the decision of amount and investment area, 98 out of 200 takes the idea ontheir own and 37 on experts opinion, 35 on brokers advice, and 19 on friends advice.
Q6.When the respondents asked whether any professional advice is available to them
when required, the following responses were obtained.
98
37
19
35
11
0
20
40
60
80
100
120
On your own
idea
Expert's option On friend
advice
Broker advice Other
No. of respondents
No. of respondents
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Figure : 10
Out of 200, 108 respondents said that they dont and professional advice, 73 said that
they get it sometimes, and 19 of them get advice when needed.
Q7.When the respondents were asked about the motive for making investment in
capital market, the following responses were obtained.
19
108
73
No. of Responding
Yes
No
Sometime
Option Rank I Rank II Rank III
Regular income in 113 27 60
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Calculation of weight, (Rank I=3, Rank II=2, Rank =1)
Option Rank I Rank II Rank III
Regular income in the
form of dividend/
interest
339 54 60
Tax planning 165 52 119
Capital gain 360 50 55
the form of dividend/
interest
Tax planning 55 26 119
Capital gain 120 25 55
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Figure : 11
On analyzing motives for investment in capital market it was found that capital gain
was the most important factor that influences investment decisions followed by regular
income and tax planning.
Q8.When the Respondents were asked about the factors they consider while selecting a
broker, the following responses were obtained.
339
165
360
54 52 50
60
119
55
0
50
100
150
200
250
300
350
400
Regular income in form of
divident/ interest
Tax planning Capital gain
Rank I
Rank II
Rank III
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Option Rank I Rank II Rank III
Brokerage 129 59 12
Frequent payments &
transfer of securities
112 43 45
Less advance margin 59 79 62
Credit limits 65 46 89
Personal Relations 79 24 97
Calculation of Weight, (Rank I=3, Rank II=2, Rank III=1)
Option Rank I Rank II Rank III
Brokerage 387 118 12
Frequent payments &
transfer of securities
336 86 45
Less advance margin 177 158 62
Credit limits 195 92 89
Personal Relations 237 48 97
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Figure : 12
0
50
100
150
200
250
300
350
400
Brokerage Frequent
payments &
transfer of
securities
Less advance
margin
Credit limits Personal
Relations
387
336
177
195
237
118
86
158
92
48
12
45
62
8997
Rank I
Rank II
Rank III