azam razvi project

8/4/2019 Azam Razvi Project

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PROJECT REPORT

ON

PORTFOLIO MANAGEMENT & INVESTMENT PLANNING

IN

ANAND RATHI SHARE & STOCK BROKERS LTD.

BY

AZAM BASIT RAZVI

MPBA 2ND YEAR

SUBMITTED TO

SYNERGY INSTITUTE OF MANAGEMENT

PUNE-30



INDEX

Sr .no. Particulars Page no.

1 Acknowledgment

2 Executive summary

3 Objective

4 History

5 Competitors

6 Company profile

7 Project methodology

8 Finding

9 Learning

10 Conclusion

11 Recommendation

12 Bibliography



ACKNOWLEDGEMENT

It gives me pleasure to express my most profound regardsand sense of great indebtedness and sincere gratitude to my

Company Guide Mr.Manish Toshniwal, branch manager ,Anand Rathi shares & securities ltd.shop no.9-11 shivkamalsilvar Arch, Ram Nagar,Ausa Road, Latur(Maharashtra).

I would thank to my Mr.Sachin sir (share analysts,A.S.S.B.Ltd,latur ) for his guidance in preparing this report . Iwould thank to my project mentor Mr.AHISH SHAHANE

(online trader AXIS BANK,CHICHWAD,PUNE) for hisguidance in preparing this report.

I would also like to thank my co employees who gaveguidance and support during the completion of the project.

AZAM RAZVI



EXECUTIVE SUMMERY

OBJECTIVE

To learn about equity market. To learn to how to design investor portfolio.

Basically to understand the concept of portfoliomanagement and its relation to Investment planning

Proper understanding & analysis of anand rathisecurities Ltd. & competitors.

FINDING

Company is more known for his less brokerage charges.

Company is more known for his big network

Anand rathi securities ltd. Is best financial servicesprovider in the market.

ANALYSIS OF CUSTOMER ON THE BASIS OF:

Professional status.

Annual income.

Investment portfolio. Awareness of De-MAT a/c



Analysis of competitors:-

Products.

Online/offline trading account.

Promotional activity.

Strategies applied for achieving the objective:-

Individual marketing.

Telemarketing.

Personal selling, references.

Conclusion

Dealing with financial services marketing is very challenging

job. Anand rathi securities ltd. Has many brand loyal customer.

Company has to create an interest and awareness in peopleabout share market.

Anand rathi securities ltd. Is also known for its aggressivemarketing.



OBJECTIVES

Proper understanding & analysis of anand rathi securities ltd.Products.

To develop a knowledge in area of equity market.

Proper understanding & analysis of anand rathi securities ltd.provided by them.

Understanding & analysis about investment portfolio.

Diffracts types of investment and his benefits .

Investment on Dividends and interest.



HISTORY

HISTORY OF THE STOCK BROKERING INDUSTRY:

Indian stock markets are one of the oldest in Asia. Its history datesback to nearly 200 years ago. The earliest records of securitydealings in India are meager and obscure.

By 1830’s business on corporate stock and share in bank and cottonpresses took place in Bombay. Though the trading list was broader

in 1839, there were only half dozen brokers recognized by bank andmerchant during 1840 and 1850 .the 1850’s witnessed rapiddevelopment of commercial enterprise and brokerage businessattracted many men into the field and by 1860 the number of brokers increased into 60.

In 1860-61 the American civil war broke out and cotton supply fromUnited States of Europe was stopped; thus, the ‘share mania’ in India

begun .the number of brokers increased to about 200-250.However, at the end of the American civilwar, in 1865, a disastrousslump began (for example ,bank of Bombay share which hadtouched Rs.2850 could only be sold at Rs.87).at the end of Americancivil war ,the brokers who thrived out of civil war in 1874, found aplace in a street (now appropriately called as dalal street) wherethey conveniently assemble and transact business.

In 1887, they formally established in Bombay, the “native shareand stock brokers” association” (which is alternatively known as“the stock exchange”).



In 1895, the stock exchange acquired a premise in the same street and it was inaugurated in 1899. Thus, the stock exchange at Bombaywas consolidated.

Thus in the same way, gradually with the passage of time numberof exchange were increased and at currently it reached to the figureof 24 stock exchanges.

History of Anand Rathi:

Anand Rathi shares and stock brokers ltd. (AR) is a leading full servicesecurities firm providing the entire gamut of financial services. The firm,founded in 1994 by Mr. Anand Rathi, today has a pan India presence aswell as an international presence through offices in Dubai and Bangkok.AR provides a breadth of financial and advisory services includingwealth management, investment banking, corporate advisory, brokerage& distribution of equities, commodities, mutual funds and insurance,structured products - all of which are supported by powerful researchteams.

The firm's philosophy is entirely client centric, with a clear focus onproviding long term value addition to clients, while maintaining thehighest standards of excellence, ethics and professionalism. The entirefirm activities are divided across distinct client groups: Individuals,Private Clients, Corporate and Institutions and was recently ranked byAsia Money 2006 poll amongst South Asia's top 5 wealth managers forthe ultra-rich.

In year 2007 Citigroup Venture Capital International joined the group asa financial partner.



Equity & Derivatives Brokerage:

AnandRathi shares and stock brokers ltd. provides end-to-end equitysolutions to institutional and individual investors. Consistent delivery of high

quality advice on individual stocks, sector trends and investment strategy hasestablished us a competent and reliable research unit across the country.Clients can trade through us online on BSE and NSE for both equities andderivatives. They are supported by dedicated sales & trading teams in ourtrading desks across the country. Research and investment ideas can beaccessed by clients either through their designated dealers, email, web or SMS

Milestones:

1994: Started activities in consulting and Institutional equity sales withstaff of 15.

1995: Set up a research desk and empanelled with major institutionalinvestors.

1997: Introduced investment banking businesses. Retail brokerage

services Launched.

1999: Lead managed first IPO and executed first M & A deal.

2001: Initiated Wealth Management Services.

2002: Retail business expansion recommences with ownership model.

2003: Wealth Management assets cross Rs 1500 crores. Insurancebroking launched, Launch of Wealth Management services in Dubai.Retail Branch network exceeds 50.



2004: Commodities brokerage and real estate services introduced,Wealth Management assets cross Rs 3000 crores, Institutional equitiesbusiness relaunched and senior research team put in place, RetailBranch network expands across 100 locations within India.

2005: Real Estate Private Equity Fund Launched, Retail Branchnetwork expands across 200 locations within India.

2006: AR Middle East, WOS acquires membership of Dubai Gold &Commodity Exchange (DGCX) , Ranked amongst South Asia's top 5wealth managers for the ultra-rich by Asia Money 2006 poll, Ranked 6thin FY2006 for All India Broker Performance in equity distribution in theHigh Net worth Individuals (HNI) Category, Ranked 9th in the RetailCategory having more than 5% market share, Completes its presence inall States across the country with offices at 300+ locations within India.

2007: Citigroup Venture Capital International picks up 19.9% equitystake , Retail customer base crosses 100 thousand, Establishes presencein over 350 locations

DEVELOPMENT

An important early in the development of the stock market inIndia was the formation of the ‘native share and stock brokers’association at Bombay in 1875, the precursor of the present-dayBombay stock exchange. This was followed by the formation of

association/exchange in Ahmadabad (1894), Calcutta (1908), andmadras (1937).in addition, a large number of ephemeral exchangingtimes subsequently.

In order to check such aberrations and promote a more orderlydevelopment of the stock market, the center government introduced



a legislation called the securities contracts (regulation) act, 1956.Under this legislation ,it is mandatory on the part of a stockexchange to seek government recognition. As of January 2002 there

were 23 stock exchange recognized by the central government .theyare located at Ahmadabad, Bangalore, Baroda, Bhubaneswar,Calcutta, Chennai,(the madras stock exchange), cochin, Coimbatore,delhi, guwahati, Hyderabad ,Indore, jaipur ,Kanpur ,Ludhiana,Mangalore ,Mumbai, (the national sock exchange or NSE ),Mumbai(the stock exchange) ,popularly called the Bombay stock exchange,Mumbai (OTC exchange of India ),Mumbai(the interconnected stock

exchange of India ),Patna ,Pune , and Rajkot .of course, the principalbourses are the national stock exchange and the Bombay stockexchange ,according for the bulk of the business done on the Indianstock market.

While the recognized stock exchanges have been accorded aprivileged position, they are subject to government supervision andcontrol. The rule of a recognized stock exchange relating to the

managerial powers of the governing body, admission, suspension,and re-admission of its members, appointment of authorizedrepresentative and clerks, so on and so forth have to be approved bythe government. These securities contracts (regulation) act vests thegovernment with the power to make enquiries into the affairs of arecognized stock exchange and its business, withdraw therecognition the task of regulation the stock exchange to the

securities exchange board of india.



BSE INTRODUCTION

Bombay stock exchange is the oldest stock exchange in Asia with arich heritage, now spanning three centuries in its 133 years of existence. What is now popularly known as BSE was established as“the native share & stock brokers association” in 1875.

BSE is the first stock exchange in the country which obtainedpermanent recognition (in 1956).BSE’s pivotal and preeminent role

in the development of the Indian capital market is widelyrecognized. it migrated from the open outcry system to an onlinescreen-base order driven trading system in 1995. Earlier anassociation of persons(AOP) ,BSE is now a corporatized anddemutualised entity incorporated under the provision of thecompanies ACT,1956, pursuant to the BSE (corporatization anddemutualization )scheme ,2005 notified by the securities and

exchange board of India (SEBI) with demutualization, BSE has twoof world’s best exchange ,deutsche and Singapore exchange, as it’sstrategic partners.

Over the past 133 years, BSE has facilited the growth of the Indiancorporate sector by providing it with an efficient access to resources.there is perhaps no major corporate in Indian which has not sourced BSE’s services in raising resources from the capital market.

Today, BSE is the world’s number 1 exchange in terms of thenumber of listed companies and the world’s 5th in transactionnumbers. The market capitalization as on December 31, 2007 stoodUSD1.79 trillion. An investor can choose from more than 4,700



listed companies which for easy reference are classified into A, B, S,T and Z groups.

The BSE index, SENSEX, is India’s first stock market index that

enjoys an iconic stature, and is tracked worldwide .it is an index of 30 stock representing 12 major sectors. The SENSEX is constructedon a ‘free-float’ methodology, and is sensitive to market sentimentsand market realities. Apart from the SENSEX,BSE offers 21 indices,including 12 sect oral indices.BSE has entered into an indexcorporation agreement with deutsche borse.this agreement hasmade SENSEX and another BSE indices available to investors in

Europe and America .moreover ,Barclays global investors in(BGI),the global leader in ETFs through its isharesÂ® brand,hascreated the ‘isharesÂ® BSE SENSEX India tracker’ which tracks theSENSEX .the ETF enables investors in Hong Kong to take anexposure to the Indian equity market.

The first exchange treaded fund (ETF) on SENSEX, called “SPIcE” islisted on BSE.it brings to the investors a trading tool that can beeasily used for the purposes of investment, trading, hedgingarbitrage.SPIcE allows small investors to take a long-term view of the market.

BSE provides an efficient and transparent market for trading inequity, debt instrument and derivatives .it has a nation –wide reachwith a presence in more than 359 cities and town of India .BSE has

always been at par with the international standards. The system andprocesses are designed to safeguard market integrity and enhancetransparency in operation.BSE is the first exchange in India and thesecond in the world to obtain an ISO 9001:2000 certifications. it isalso the first exchange in the country and second in the world to



receive information security management system standard BS7799-2-2002 certification for its BSE on-line trading system (BOLT).

BSE continues to innovate. in recent times, it has become the first

national level stock exchange to launch its website in gujrathi andHindi to reach out to larger number of investors. it has successfullylaunched a reporting platform for corporate bonds in Indiachristened the ICDM or Indian corporate debt market and a uniqueticker-cum-screen aptly named ‘BSE broadcast’ which enablesinformation dissemination to the common man on the street.

In 2006, BSE launched the director’s database and ICERS (Indiancorporate electronic reporting system) to facilitate information flowand increase transparency in the Indian capital market. While thedirectors database provide a single-point access to information onthe boards of directors of listed companies, the ICERS facilitates thecorporate in sharing with BSE their corporate announcements.

NSE Introduction

NSE(National stock Exchange) was incorporated in 1992 and wasgiven recognized as a stock exchange in April 1993. It started

operations in June 1994, with trading on the wholesale debt market segment. Subsequently it launched the capital market segment inNovember 1994 as a trading platform for equities and the futuresand options segment in June 2000 for various derivativesinstrument.



NSE has been able to take the stock market to the doorstep of theinvestors. The technology been harnessed to deliver the services tothe investors across the country at the cheapest possible cost. it

provide a nation –wide ,screen –based ,automated trading system,with a high degree of transparency and equal access to investorsirrespective geographical location .the high level of informationdissemination through on-line system has helped in integratingretail investors on a nation wise basis .the standards have becomeindustry benchmark and are being replicated by other market participated .within a very short span of time , NSE has been able to

achieve all the objective for which it was set up. it has been playinga leading role as change agents transforming the Indian capitalmarket are a far cry from what they used to be a decade ago in termsof market practices, infrastructure, technology, risk management,clearing and settlement and investors services.



COMPETITOR’S

Major players:-

S.s.kantilal ishwarlal securities pvt, ltd.(www.sharekhan.com)

ICICI web trade ltd.

(www.icicidirect.com) 5paisa .com

(www.5paisa.com) Kotak securities ltd.

(www.kotakstreet.com) India bulls.

(www.indiabulls.com)

Motilal oswal securities ltd. HDFC securities ltd.

(www.hdfcsec.com)

UTI securities ltd.

IDBI capital market pvt. Ltd. Refco sify securities pvt. ltd.

http://www.sharekhan.com/

http://www.icicidirect.com/

http://www.5paisa.com/

http://www.kotakstreet.com/

http://www.indiabulls.com/

http://www.hdfcsec.com/

http://www.hdfcsec.com/

http://www.indiabulls.com/

http://www.kotakstreet.com/

http://www.5paisa.com/

http://www.icicidirect.com/

http://www.sharekhan.com/



ParametersA/C Opening Fee Brokerage Interface

TradingA/C

De-MAT

Delivery Squareoff

BankAssociation

with

Sharekhan 750 NIL 0.50 0.10 HDFC, UTI, IDBI& CitiBank

ICICI Bank 750 NIL 0.75 0.18 ICICI Bank

India Bulls 750 250 0.40 0.10 NA

5 Paisa 800 NIL 0.20 0.05CitiBank,

HDFC, UTI &ICICI Bank

Kotak Street 500 NA 0.59 0.06 Kotak Bank &CitiBank

HDFCSecurities

700 NIL 0.50 0.15 HDFC & OtherBank



S. S. KANTILAL ISHWARLAL SECURITIES PVT, LTD.

(SHAREKHAN.COM):

Share-khan, India’s leading stock brokers is the retail arm of SSKI,and offers you depository services and trade execution facilities forequities, derivatives and commodities backed with investment advice tempered by decade of broking experience .a research andanalysis team is constantly working to track performance andtrends. That’s why share khan has the trading products, which arehaving one of the highest success rates in the industry .share khan ishaving 240 SHARE SHOP IN 110 CITIES; the largest chain of retailshare shop in India is of share khan.

ICICI WEB TRADE LTD.

ICICIDIRECT.COM WAS THE FIRST ENTRANT INTO E-BROKING. ICICIdirect.com provides the 3-in-1 to the users which ties in theirsaving bank account and their De-MAT account to their brokerageaccount electrically. this integration ensures that money is

transferred to/from their bank account and the shares aretransferred from/to their De-MAT account automatically without writing any cheques or transfer instruction while carrying out theirtrades in share.

ICICIdirect.com has the option of trading in shares in cash, margin orspot segment. An investor can also invest in 14 mutual fund

(prudential ICICI MF, Franklin Templeton India MF, Alliance capitalMF, JM MF, standard chartered MF, reliance capital MF, KotakMahindra MF, TATA MF and DSP MERRILL LYNCH MF) throughtheir trading account. ICICIdirect.com doesn’t provide the facility of trading in a traditional way



5 PAISA.COM:

5paisa is the trade name of India info line securities Pvt.Ltd.(5paisa), member of national stock exchange and the stock

exchange, Mumbai. 5paisa is a wholly owned subsidiary of India infoline ltd. India’s leading and most popular finance and investment portal.5paisa has emerged as one of leading players in e-brokingspace in India.

The company’s brokerage is one of the lowest in the industry. It alsoprovides the research on commodities. Investors can benefit fromits analysis and advice available at the click of the mouse. For thosewho prefer to trade the traditional way, India info line investor point are available across the country.

India info line was founded by a group of professionals in 1995.itsinstitutional investors include Intel capital, one of the leadingtechnology companies in the world promoted by the UK government ,ICICI,TDA and Reeshaner. The company offers a slew of products

such as stock and derivatives broking, commodities broking andmutual funds.

KOTAK SECURITIES LIMTED (kotakstreet.com):

Kotak securities ltd., A strategic joint venture between kotakMahindra bank and Goldman Sachs (holding 25%- one of the worldsleading investment bank and brokerage firm) is India’s leading stockbroking house with a market share of 5-6%.kotak securities ltd.hasbeen the largest in IPO distribution –it was ranked number one in



2003-04 as book running lead managers in public equity offering byprime database .it has also won the best equity house award fromfinance asia-april 2004.

Kotak securities ltd.is also a depository participant with nationalsecurities depository limited (NSDL) and central depository serviceslimited (cdsl) providing dual benefit services wherein the investorscan use the brokerage services of the company executing thetransaction and the depository services for setting them. Thecompany has online division of kotak securities limited offersinternet broking services and also online IPO and mutual fund

investment.

Kotak securities limited manages asset over 1700cr. Under portfoliomanagement services (PMS) which is mainly to the high end of themarket. Kotak securities ltd.has newly lunched “kotak infinity” asdistinct discretionary portfolio management services which looksinto the middle end of the market.

INDIA BULLS:

India bulls is India’s leading retail finance services size and strongbalance sheet allows providing varied products and services at veryattractive price, our over 750 client relationship managers arededicated to serving your unique needs.

India bulls is lead by a highly regarded management team that hasinvested corers of rupees into a world class infrastructures that provide real-time services & 24/7 access to all information andproduct .the INDIA BULLS PROFESSINAL NETWORK. Offers real-time prices, detailed data and news, intelligent analytics, and



electronic trading capabilities, right at your finger-tips .thispowerful technology is complemented by our knowledgeable andcustomer focused relationship managers.

India bulls offers a full range of financial services and productsranging from equities, derivatives, demat services and insurance toenhance wealth and to achieve the financial goals.

MOTILAL OSWAL SECURITIES LTD. (MOSt):

One of the top-broking houses in India, with a dominant position inboth institutional and retail broking, MOSt is amongst the best

capitalized firms in the broking industry in tears of net worth. MOSt was founded in 1987 as a small sub – broking unit, with just twopeople running the show. Focus on customer-first-attitude, ethicaland transparent business practices, respect for professionalism,research based value investing and implementations of cutting edgetechnology have enabled it to blossom into a thousand-memberteam.

The institutional investors (flls) in the US, UK Hong Kong andSingapore .in a recent media report MOSt was rated as one of the top10 brokers in terms of business transacted for flls.

The retail business unit provides equity investment solutions tomore than 50,000 investors through 270 outlets spanning 150 citiesand 22 states. MOSt provides advice-based broking, portfolio

management services (PMS), E-broking services, depositoryservices, commodities trading, IPO and mutual fund investment advisory services. Its value PMS scheme gave a 160% post tax returnfor the year ended march 2004.



In Asia money brokers poll 2003 mOSt has rated as the best domestic research house and second best amongst Indian brokeragefirms respectively.

HDFC SECURITIES LTD (HDFC SEC):-

HDFC securities is a brand brought to your by HDFC securities ltd,which has been promoted by the HDFC bank and HDFC with theobjective of providing the diverse customer base of the HDFC groupand other investors a capability to transact in the stock exchange

and other financial market transaction .the service comprise onlinebuying & selling of equity shares on the national stock exchange(NSE) .buying & selling of the select corporate debt and government securities on the NSE would be introduced in a subsequent phase.In a few month ,they will also start offering the following onlinetrading services BSE & NSE:

1. Buying and selling of the shares on the BSE.2. Arbitrage between BSE & NSE.3. Trading in derivatives on the NSE.4. Margin trading products.

They are also planning to include buying and selling of mutualfund, IPO subscription ,right issues, purchase of insurancepolicies and asset financing.



UTI SECURITIES LTD:(UTISEL):

UTI securities ltd Was incorporated in June 24, 1994 by unit trust of India as a 100% subsidiary on the repealing of the utiact, the capital is now held by the administrator of the specifiedundertaking of the unit trust of India (ASUUTI). UTI securitieshave been working as an independent professional entity forproviding financial intermediary and advisory services to itscorporate and retail clientele.

The company has presence in major cities with 20 branches &50 franchisees to service a wide range of clients. The companyhas also invested in the joint-venture company with standardcharted bank viz. standard charted UTI securities (p) ltd. That is engaged in primary dealership and government securities.The company is very soon going to start commodity tradingthrough its subsidiary, USEc commodities ltd, which providefacility of commodity trading on NCDEX andmcx

IDBI CAPITAL MARKET SERVICES LTD:

IDBI capital is a leading Indian securities firm offering acomplete sutie of products and services to individual,institutional and corporate clients.IDBI capital market services ltd. (IDBI capital), a wholly ownedsubsidiary of industrial development bank of India(IDBI), is aleading Indian securities firm, offering a complete suite of products and services to individual , institutional andcorporate clients. the services include fixed income trading ,



investor point of view, there was a problem of privacy.The information of the investor may leak by the broker.So, to remove this limitations of traditional broking, there

was an emergence of new concept of e- broking.

E-BROKING:

Today is world of technology. So, the person who adopt it,get the success. So, E-broking means broking throughelectronic means. E-broking is the broking in which the

investors who are familiar with the use of computer andinternet they directly trade in stock market. they tradeany time at any place when the stock market is open. Thecost of transaction is also reducing with time. Theinvestors have a large range of option for the trading. it isa paperless transaction so it reduces the cost of company.There was a facility of live streaming quotes, which give

exact price of share which prevailing in the market at thetime. There are two types of online trading services :DISCOUNT BROKER AND FULL SERVICE BROKER.

Discount online brokers allow you to trade via internet at reduced rates. Some provide quality research, other don’t.

Full services online brokerage is linked to existingbrokerage. This brokerage allow their client to placeonline orders with option of talking/chatting to brokers if advice is needed



Brokerage rates here are higher. Online trading is still inits infancy stage in India. With trading trade turnover at around Rs.10 corers per day from online trading

compared to a combined gross turnover of aroundRs.9000-10000 crores handled by the BSE and NSEtogether , online trading has a long way to go.

INTERNET TRADING IN INDIA:

In the past , investors have no option but to contact their

broker to get real time access to market data. The net brings data to the investors on line and net brokingenable him to trade on a click. Now information hasbecome easily accessible to both retail as well as biginvestors.The development of broking in India can be categorizedin 3 phases:

1. Stock brokers offering on their sites features such aslive portfolio manager, live quotes market researchand news to attract more investors.

2. Brokers offering online broking and relationshipmanagement by providing and offering analysis andinformation to investors during broking and no-broking hours based on their profile and needs, that iscustomized services.

3. Brokers (now e-brokers) will offer value management or services such as initial public offering online, asset allocation , portfolio management , financial planning,



insurance services and enable the investors to takebetter and well- considered decisions

In the US, 82% of the deals are done online. TheEuropean online broking market is expected to be of $8billions and is likely to rise five fold by 2002. In India ,presently internet trading can take place through theorder routine system, which will route client orders toexchange trading system for execution of trade onstock exchange (NSE and BSE) . This will also require

interface with banks to facilitate instant cash debit orcredit and the depository system for debit or credit of securities.



COMPANY PROFILE

Anand rathi is a leading full services securities firm providing theentire gamut of financial services. The firm, founded in 1994 by Mr.Anand rathi, today has a pan India presence as well as aninternational presence through offices in Dubai and Bangkok. ARprovides a breadth of financial and advisory services includingwealth management , investment banking , corporate advisory,brokerage and distribution of equities , commodities, mutual fundsinsurance, structured products-all of which are supported bypowerful research teams.

The firm’s philosophy is entirely client centric, with a clear focus on

providing long term value addition to clients, while maintaining thehighest standards of excellence, ethics and professionalism. Theentire firm activities are divided across distinct client groups :individuals , private clients, corporate & institutions and wasrecently ranked by Asia money 2006 poll amongst south Asia’swealth managers for the ultra-rich. In year 2007 citigroup venturecapital international joined the groups as a financial partner.

Company charged between 0.5 % to 35% for delivery trades andbetween 0.03% & 0.08% non delivery trades.



What is Portfolio Management?An investor considering in securities is faced with the problem of choosing from among a large number of securities. His choice dependsupon the risk return characteristics of individual securities. He wouldattempt to choose the most desirable securities and like to allocate hisfunds over this group of securities. Again he is faced with problem of deciding which securities to hold and how much to invest in each. Theinvestor faces an infinite number of possible portfolios or groups of

securities. The risk and return characteristics of portfolios differ fromthose of individual securities combining to form a portfolio. Theinvestor tries to choose the optimal portfolio taking into considerationthe risk return characteristics of all possible portfolios.

Portfolio services

Breadth of Services

In line with its client-centric philosophy, the firm offers to itsclients the entire spectrum of financial services ranging frombrokerage services in equities and commodities, distribution of mutual funds, IPO’s and insurance products, real estate, investment banking, merger and acquisitions, corporate finance and corporateadvisory.

Clients deal with a relationship manager who leverages and bringstogether the product specialists from across the firm to create anoptimum solution to the client needs.

Management Team



AR brings together a highly professional core management teamthat comprises of individuals with extensive business as well asindustry experience. In-Depth Research

Our research expertise is at the core of the value proposition that weoffer to our clients. Research teams across the firm continuouslytrack various markets and products. The aim is however common -to go far deeper than others, to deliver incisive insights and ideasand be accountable for results.

Transparency

A R team provides to his customers transparency in customerportfolio.

Tel-calling

On Telephone also you can manage your portfolio .

Finance

A R Is also providing personal finance for his investor.

Service charges

A R is well known for lower brokerage and it is also veryless charge for service charge.



Portfolio and research objects

Aging: In different investment sectors manage toreduce risk .

To evaluate investment performance of selected mutualfunds in terms of risk and return.

To evaluate and create an ideal portfolio consisting thebest investments and mutual fund schemes which willearn highest possible returns and will minimize the risk.

Basically to understand the concept of portfoliomanagement and its relation to different investments andmutual funds.

Also to analyze the performance of mutual fund schemeson the basis of various parameters.

To interact with the Securities and Exchange Board of India (SEBI) and to represent to SEBI on all mattersconcerning the investment industry.

To represent to the Government, Reserve Bank of Indiaand other bodies on all matters relating to theinvestment Industry.



To develop a cadre of well trained Agent distributorsand to implement a programme of training andcertification for all intermediaries and other engaged in

the industry.

To undertake nationwide investor awarenessprogramme so as to promote proper understanding of the concept and working of investments .

Phases of Portfolio Management:

Security Analysis Portfolio Analysis Portfolio Selection Portfolio Revision Portfolio Evaluation

Security Analysis

(a) Fundamental analysis: This analysis concentrates on thefundamental factors affecting the company such as EPS (Earningper share) of the company, the dividend payout ratio, competitionfaced by the company, market share, quality of management etc.

(b) Technical analysis: The past movement in the prices of shares is studied to identify trends and patterns and then tries topredict the future price movement. Current market price is



compared with the future predicted price to determine themispricing.Technical analysis concentrates on price movements and ignoresthe fundamentals of the shares.(c) Efficient market hypothesis: This is comparatively morerecent approach. This approach holds that market pricesinstantaneously and fully reflect all relevant available information.It means that the market prices will always be equal to theintrinsic value.

Portfolio Analysis:

A portfolio is a group of securities held together as investment. It is an attempt to spread the risk allover. The return & risk of eachportfolio has to be calculated mathematically and expressedquantitatively. Portfolio analysis phase of portfolio management consists of identifying the range of possible portfolios that can be

constituted from a given set of securities and calculating their riskfor further analysis.

Portfolio Selection

The goal of portfolio construction is to generate a portfolio that provides the highest returns at a given level of risk. Harry

Markowitzh portfolio theory provides both the conceptualframework and the analytical tools for determining the optimalportfolio in a disciplined and objective way.

Portfolio Revision



The investor/portfolio manager has to constantly monitor theportfolio to ensure that it continues to be optimal. As the economyand financial markets are highly volatile dynamic changes takeplace almost daily. As time passes securities which were onceattractive may cease to be so. New securities with anticipation of high returns and low risk may emerge.

Portfolio Evaluation

Portfolio evaluation is the process, which is concerned with

assessing the performance of the portfolio over a selected periodof time in terms of return & risk. The evaluation provides thenecessary feedback for better designing of portfolio thenext time around.

Measurement of risk

Risk refers to the possibility that the actual outcome of an

investment will differ from the expected outcome. In other wordswe can say that risk refers to variability or dispersion. If anyinvestment is said to invariable it means that it is totally risk free.Whenever we calculate the mean returns of an investment we alsoneed to calculate the variability in the returns.

Variance and Standard Deviation

The most commonly used measures of risk in finance are varianceor its square root the standard deviation. The variance and thestandard deviation of a historical return series is defined asfollows:



Beta

A measure of risk commonly advocated is beta. The beta of a

portfolio is computed the way beta of an individual security iscomputed. To calculate the beta of a portfolio, regress the rate of return of the portfolio on the rate of return of a market index. Theslope of this regression line is the portfolio beta. It reflects thesystematic risk of the portfolio.

[



ANAND RATHI’S PRODUCTS:

equities /bond/mutual fund/derivatives managed investment services/PMS commodities forex trading life insurance general insurance

alternative assets private equity funds structured products real estate opportunities fund special situation opportunities offshore structures & global investment

services:

portfolio managment creation of a customized financial strategy diversification of asset based on a formal process of asset

allocation active tracking , monitoring and review of portfolio creations of private trusts tax planning estate planning structuring of family wealth



EQUITY & DERIVATIVES BROKERAGE:

Anand rathi provide end –to – end equity solution toinstitutional and individual investors. Consistent delivery of high quality advice on individual stock, sector trends andinvestment strategy has established us a competent andreliable research unit across the country.

Clients can trade through us online on BSE & NSE for both

equities and derivatives. They are supported by dedicatedsales & trading teams in our trading desks across the country.Research and investment ideas can be accessed by clientseither through their designated dealers, Email, web or sms.



BOARD OF DIRECTORS:

Anand rathi (Founder & chairman)

Prior to establishing his own company, Mr. Rathi headedIndian rayon & industries, as senior president. He has held aseries of responsible positions with the Birla group and wasalso instrumental in setting up of Birla global finance. In his 40years of being in the corporate world, Mr. Rathi has heldseveral key positions on various regulatory and professionalboards, including, president, Bombay stock Exchange (BSE)And member, central council of institute of charteredAccountants (ICAI). As president of BSE, Mr. rathi played a keyrole in the expansion plan of bolt, the online trading system of

the exchange and setting up of the trade guarantee fund. Hewas the moving force behind setting up of the centraldepository services ( India ) ltd. he is a gold medalist charteredAccountant.

PRADIP GUPTA

( CO-FOUNDER & VICE CHAIRMAN)

With over twenty years experience in the securities market.Co-founder and key driver of the retail and institutionalequities business of the group.



AMIT RATHI

(MANAGING DIRECTOR

A rank holder chartered accountant and an MBA from LeonardN.stern school of Business; New York university joined thegroup in 1998. He was instrumental in establishing the group’sprivate wealth management and investment banking business.Calling him a ‘financial guru’, the times of India group, listed

Amit in 2008 amongst the top 51 young marwaris in India(under the age 40).

PG KAKODKAR

(DIRECTOR)

Former chairman of state Bank of India. director in financial

technologies (India). Director in sesa goa ltd. director in SBIfunds management Pvt,ltd & the multi commodity exchange of India ltd and a M.A. in economics.

DR. SA DAVE

(DIRECTOR)

Former chairman securities & exchange board of India (SEBI)and deputy director of the RBI. Former chairman unit trust of India (UTI). Member of general committees of government of India & financial reforms and chairman CMIE 1998 till date.And a M.A. (USA) with PH D in economics.



CD ARHA

(DIRECTOR)

Formerly securities in the union ministry of mines. Specialsecretary & additional secretary in the ministry of coal.Resident chief information commissioner- AP (right toinformation Act). Commissioner civil supplies (AP). Chairman& MD, APSEC. With a M.A. (History) and diploma management & administration of rural development.

AJIT BHUSHAN

(DIRECTOR)

Managing director Cities venture capital London over 17 years

experience with Cities. Joined CVC international in 2001.Worked on strategy and business development for Citibank inCEEMEA region and managed cash management business forCiti in Poland and India. B tech (IIT Delhi) and an MBA (IIMAhmedabad).



SERVICES OFFERING Advisory:

our advisory business serves as an independent sounding

board and advsor on every strategic, financial and operationalissue our clients face in the daily management of theirbusinesses.we view our clients as partners , which ultimatelymeans that our focus and dedication extends far beyond that of traditional investment banking advisory services-and includesa commitment to senior level focus .over the course of theircareers,members of our senior team have advised on over $30

billion in transactions. Exploring ,evaluting and recommending financial strategic

alternatives Assesing potential acquires and target providing valuation

analyses. Negotiating and consummating transaction. Advising on transaction structuring ,timing,pricing and

potential financing. providing fairness opinions

PRIVET EQUITY

Extensive knowledge and coverage of the private equity communitynot just in india but around the world allows Anand Rathi to bringstrong propritery investment ideas to financial sponsors and tooptimize outcome through identifying high-quality financial buyersfor our middle-market clients.we have built aspecialized practice inadvising private equity firms that want to invest in india but do not have a presence here.



Exploring value maximization strategies. Developing company positioning and all documentation for

potential buyers. Developing buyers lists and managing all communication with

potential buyers. managing due diligence,data rooms, site visits and all buyer

investigations. Evaluatinf bids and negotiating and executing final transaction

and documentation.

RESTRUCTURING:

Our dedicated,experienced corporate restructuring team can assist debtors and creditors with restructuring leverage in adynamic,global economy by drawing on our deep industryknowledge and broad network of commercial bankers, private

equity leadership and hedge fund managers.

developing the comprehensive restructuring andreorganization plan and assisting in the court administeredapproval process.

advising on the ultimate structuring of a potential sale orrecapitalization.

CAPITAL MARKETING:



AnandRathi is a leading underwriter of public offering and privateplacement for middle-market companies in india.We’re known forour innovative financing solution that support complex corporate

strategies ,as well as our long-standing client relationship .ourcapital markets business seeks to leverage our operational expertiseand world class institutional and retail distribution platforms topartner with existing owners and management to maximize value at the time of a public or secondary market offering . over the course of their careers, members of our senior team have raised over $20billion in equity and debt capital for companies around the world.

Assessing a company’s optal capitalization and sources of incremental capital

Developing a target investor group of effectively positioningthe company’s story to the investor community.

preparing all investor materials and managing allcommunications with potential investors.

Managing the due diligence process and all investors inquiries.

Assisting with necessary documentation to expeditiouslyexecute a successful capital raising.

Assessing the most appropriate group of investors to assist thecompany in it’s long-term plan.

INDUSTRY COVERAGE:

Focusing on a select group of core industries , our investment bankers gain deep sector knowledge and extensive transactionexperience that allow us to generate relevant ideas that help yourbusiness maximize opportunities.



Sectors served:

industrial and capital goods consumer services

technology telecom media retail Natural resources financial institutions professional services

Education clean Energy Healthcare

HOW TO OPEN ACCOUNT?

Opening online stock trading account with Anand Rathi ltd. Is easy .

simply fill a form online at below address and somebody fromAnand Rathi ltd. Will contact you. Click here to open an account with

Anand Rathi ltd.



ADVANTAGES OF ANAND RATHI LTD?

1. Extra security features.2. Simple, easy and fast online stock trading.

3. Almost all investment option are available under one account including Equity trading, derivative,forex,commodity,IPO,mutual fund and insurance.

4. Branches are available in all major cities and the number isgrowing.

ANAND RATHI SHARES & STOCK BROKER LTD.

Demat & trading A/c opening document

PHOTO PROOF:

1. PAN card2. Bank pass book

3. Driving license4. Pass port 5. Voter id

ADDRESS PROOF:

1. Bank pass book2. Driving license

3. Pass port 4. Ration card5. Bank statement 6. Voter id7. Telephone bill (recent before 2 month)



8. Electricity bill (recent before 2 month)

BANK PROOF:

1. Bank pass book2. Bank statement

Passport size photo-2

Rs.436 chq forAnand Rathi financial services ltd as A/c openingcharges.

All document in 2 Xerox copies as self attested

Account opening charges (AOC):

Note: 2 cheque’s favoring –Anand Rathi securities ltd.

Rs.750/-Account opening fees.

Rs.5000/-margin amount for trading.

Contact information:

Website: www.anandrathi.com

Email: [email protected]

Phone: +91-22-4047 7000.

http://www.anandrathi.com/



mailto:[email protected]







PRODUCTS OF ANAND RATHI:

IPOs:

We are a leading primary market distributor across the country. Ourstrong performance in IPOs has been a result of our vast experiencein the primary market, a wide network of branches across India,strong distribution capabilities and a dedicated research team

We have been consistently ranked among the top 10 distributors of IPOs on all major offering. Our IPO research team provides clients

with indepth overviews of forthcoming IPOs as well as investment recommendations. Online filling of forms is also available.

Forex:

Foreign exchange is the buying and the selling of foreign exchange inpairs of currencies. For example you may buy US dollars and sellEuros or you buy uk pounds sterling and sell japanese yen.

Personal finance:

There are good times and bad times during every stage of our lives ,and being financially prepared to face all king of situation makes thejourny of life a lot easier and certainly more comfortable.



EQUITY & DERIVAIVES BROKERAGE

Anand rathi provides end-to-end equity solution to institutional andindividual investors .consistent delivery of high quality advice onindividual stocks, sector trends and investment strategy hasestablished us a competent and reliable research unit across thecountry.

Clients can trade through us online on BSE and NSE for both equities

and derivaties.they are supported by dedicated sales & trading teamin our trading desks across the country. Research and investment ideas can be accessed by clients either through their designeddealers, Email or SMS.

DEPOSITORY SERVICES

AR depository services provides you with a secure and convenient way for holding your securities on both CDSL and NSDL.

Our depository services include settlement clearing and custody of securities ,registration of share and dematerialization .we offer youdaily updated internet access to your holding statement andtransaction summary.

COMMODITIES

Commodities broking – a whole new opportunity to hedge businessrisk and an attractive investment opportunity to deliver superior



returns for investors Our commodities broking services includeonline futures trading through NCDEX and MCX and depositoryservices through CDSL. Commodities broking is supported by a

dedicated research cell that provide both technical as well asfundamental research .our research covers a broad range of tradedcommodities including precious and base metals, oils and oilseeds,agri-commodities such as wheat,chana ,guar , guar gum and spicessuch as sugar, jeera and cotton.

In addition to transaction exection, we provide our client customized advice on hedging strategies, investment ideas and

arbitrage opportnities.

INSURANCE BROKING

As an insurance broker ,we provide to our clients comprehensiverisk management include identification ,measurment andassessment of the risk and handling of the risk ,of which insurance isan integral part.the firm deals with both life insurance and generalinsurance products across all insurance companies.

Our guiding philosophy is to manage the clients entire risk set byproviding the optimal level of cover at the least possible cost. Theentire sales process and product selection is research oriented andcustomized to the client’s needs. We lay strong emphasis on timely

claim settlement and post sales services.

Our services:

Risk management



Due diligence and research on policies available Recommendation on a comprehensive insurance cover

based on clients needs

Maintain proper records of client policies Assist client in paying premiums Continuous monitoring of client account Assist client in claim negotiation and settlement

IPOs

we are a leading primary market distributor across the country. Ourstrong performance in IPOs has been a result of our vast experiencein the primary market, a wide network of branches across India ,strong distribution capabilities and a dedicated research team wehave been consistently ranked among the top 10 distributors of IPOson all major offering . our IPO research team provides clients within-depth overview of forthcoming IPOs as well as investment .online

filling of forms is also available.Currencies

Anand rathi is an established market leader in the exchange tradedcurrencies in India ,which delivers a consistent unparallel servicesand advice in the rupee and other currencies . it offers varioussolution to varied need of the currency clients across the business

segment . we offer complete hedging solution to the end clients andhelp corporate in planning their remittances and receivables . youcan be rest assured that we have all the capabilities of replacingyour banker in your currency hedging needs.This offers an all newsegment to the trading community , the recently opened



rupee/dollar is an excellent instrument for the retail investors withless amount of margin (low entry barrier), limited volatility, lowertransaction costs and high transparency. We at anandrathi , thrive to

give you trade .with a single account you can rupee/dollar on NSEand MCX-SX

De-MAT

Just as you have to open an account with a bank if you want to saveyour money ,make cheque payment etc,you need to open a demat

account if you want to buy or sell stocks.so it is just like a bankaccount where actual money is replaced by shares.you have toopproch the DPs (remember,they are like bank branches),to openyour demat account.

PROJECT METHODOLOGY

The objectives of coustomers survey was done to understandcustomer’s trading preference towards online equity trading . otherobjectives of the study was find to the overall perception of thecustomers about the system and what motivates people to go foronline trading.

DATA COLLECTION

Both primary as well as secondary data were collected. Primary datawere collected by means of suitable questionnaire followed by



interview of willing coustomers .other relevant information wascollected from internet and company records.

REVIEW OF LITERATURE

Brining together under one site all the relevant factors to enable toinform investment is what online trading is all about. There areseveral terms which are commonly used for online share trading .

Dmat A/c:

This is a account where dematerialization take place.Dematerialization is the process by which physical certificatesof investor are converged to an equivalent number of securities from and credited into the investor’s account withhis/her DP.

DP:

A depository participant is an agent of the depository throughwhich it interfaces with the investor .DP can offer a depositoryservice only it get’s proper registration from SEBI.

DEPOSITORY:

A depository is an organization which holds securities of investors in electronic form at request of the investors througha registration depository participant .it also provides servicesrelated to transaction in securities.

SAVING A/C:

This is a regular bank A/c which is linked to D Mat A/c andtrading A/c required amount of money is used for trading fromsaving A/c



Trading A/C:

This is a A/c through which actual trading i.e. buying andselling takes place. In online share trading all three account are

interlinked.



FINDINGS

It was found from the study and analyses that Anand Rathi is

one of the best financial services provider in the market 48% respondents reflected confidence and optimism in the context of their investments.

The most of coustomer get information of Dmat A/c fromexecutive.

Effective personnel selling process is become important taskfor generating or promoting task.

Broker’s advice matters to as much as 32% of the people. Majorpart of people preferred self-evaluation as best .

The most important thing was found that Anand Rathi is alsoknown for its less brokerage changes comparing withcompetitors charges.



LEARNING

Knowledge of responsibility

Knowledge of our competitors

Be a good listener

Important of Talkative persons

Think in terms of client interest

Knowledge of financial instrument

Self-confidence

Knowledge of financial market.



CONCLUSION:

1. Due to effective personnel selling process business of Anand rathi is directly promoted.

2. Advertising is proper channel of sales promotion.

3. The servey led to the observation that a largenumber of coustomers are aware of Anand rathi incase of Dmats A/c

4. Thus after the survey it can be inferred that, yes

Anand Rathi is defiantly popular in the market as abrand

5. It has got many brand loyal customer and offeringbetter services than other in case of Dmat A/cmutual fund.



RECOMMENDATIONS

To developing awareness to get more prospectuses, also increase insatisfaction among the customer:

1. Anand rathi bank should come with more innovative schemesfor D mat A/c

2. The lengthy procedure of documentation i.e. verification,disbursement should be made easier

3. After activation of De-mat A/c a regular feedback (i.e. after saleservice) needs to be taken in order to ensure that the customerhas no problem.

4. Proper communication channel should be established to makethe customer aware of new scheme launched by Anand rathi

5. Anand rathi should offer new attractive product to focus onmore customers by considering the market survey

6. Most of the people are not much aware about all the financialservices, so there is need of sale promotion and advertisement of Anand rathi to make awareness among people about theservice available at Anand rathi.

7. The companies should introduce attractive scheme for retiredperson.

8. Company should minimize processing fee and time9. Company should simply procedure for applying and

repayment.



Bibliography

www.google.com

www.anandrathi.com

www.money.com

financial magazine

http://www.google.com/






http://www.money.com/






azam razvi project

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