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SUMMER PROJECT REPORT

On

INVESTMENT SERVICES AND

INVESTMENT PROCESS OF UNICONINVESTMENT SOLUTION

At

Under the guidance o

Mr! MADURI"A MALI# Dr!

S$ARAT S$ARMA

Sales Manager Faculty,

Management

SRM-IST,Modinagar

SU%MITTED %"&

A'$AR $USSAIN #$AN

Reg! No! ( )*+,-+./

0M!%!A! .++,(.+1+2

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SRM 3 INSTITUTE OF SCIENCE AND

TEC$NOLO4"5 MODINA4AR

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STUDENT DECLARATION

I AZHAR HUSSAIN KHAN student of MBA here by declared that the research

report entitled INVESTMENT SERVICES AND INVESTMENT PROCESS

OF UNICON INVESTMENT SOLUTIONis completed and submitted under

the guidance of Mr.Tarun Kumar (Sr.Rea!"#n$%"& Mana'er is my original

work. The imperial finding in this report is based on the data collected by me. I

have not submitted this project report to SM!IST or any other "niversity for the

purpose of compliance of any re#uirement of any e$amination or degree.

DATE) AZHAR HUSSAIN KHAN

PLACE) M*A III SEM

ROLL NO. +,-/-01

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ACKNO2LED3EMENT

At the very beginning% I wish to render my deep sense of gratitude with special

thanks and due regard to Mr. TARUN KUMAR (Sr. Rea!"#n$%"& Mana'er4

Un"5#n In6e$!men! S#u!"#n whom I re#uired the privilege of working. &is

invaluable guidance and thoughtful consideration had been the key motivating

factor throughout my project% which enabled me to complete my project so

efficiently and effectively.

I wish to e$press my respectable thanks and gratitude to Dr. SHARAT SHARMA

(Fa5u!7 #8 M.*.A. theoretical knowledge about the subject.

I feel immense pleasure to offer my thanks to faculty members% who co!operated in

analysis of data and helped me to understand some behavioral aspects of

consumers. I am very thankful to my friends who directly and indirectly helped me

in collection of data and material related to the research topic.

AZHAR HUSSAIN KHAN

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C%a&!er 9 :

'. ($ecut5


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C%a&!er 9 1

1. 8uestionnaire 3/

2. Bibliography 33

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E=ECUTIVE SUMMAR>

To get initial success in this field is very difficult. Although the business

generation becomes easier with time as they serve more people who then get added

up in the loyal clientage. Thus time and service are two most factors to get in this

field.

Also the corporate remains a very important segment which gets business in bulk

but retail cannot be ignored which makes your business ticking.

-ustomer remains in the pivotal position.

The financial sector is in a process of rapid transformation. eforms are continuing

as part of the overall structural reforms aimed at improving the productivity and

efficiency of the economy. The role of an integrated financial infrastructure is to

stimulate and sustain economic growth.


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FINANCIAL SECTOR

The financial sector is in a process of rapid transformation. eforms are continuing

as part of the overall structural reforms aimed at improving the productivity and

efficiency of the economy. The role of an integrated financial infrastructure is to

stimulate and sustain economic growth.

The "S9 *3 billion Indian financial sector has grown at around '/ per cent and has

displayed stability for the last several years% even when other markets in the Asian

region were facing a crisis. This stability was ensured through the resilience that

has been built into the system over time. The financial sector has kept pace with

the growing needs of corporate and other borrowers. Banks% capital market

participants and insurers have developed a wide range of products and services to

suit varied customer re#uirements. The eserve Bank of India :BI; has

successfully introduced a regime where interest rates are more in line with market

forces.

+inancial institutions have combated the reduction in interest rates and pressure on

their margins by constantly innovating and targeting attractive consumer segments.

Banks and trade financiers have also played an important role in promoting foreign

trade of the country.

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*an?$

The Indian banking system has a large geographic and functional coverage.

0resently the total asset si


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The Securities and ($change Board of India :S(BI; has effectively been

functioning as an independent regulator with statutory powers.

Indian capital markets have rewarded +oreign Institutional Investors :+IIs; with

attractive valuations and increasing returns.

The Mumbai Stock ($change continues to be the premier e$change in the

country with an increase in market capitalisation from "S9 ,5 billion in '665!'66'

to "S9 *5) billion in '666!*555. The stock e$change has about %555 listed

companies and an average daily volume of about a billion dollars

Many new instruments have been introduced in the markets% including inde$

futures% inde$ options% derivatives and options and futures in select stocks.

In$uran5e

>ith the opening of the market% foreign and private Indian players are keen to

convert untapped market potential into opportunities by providing tailor!made

products@

The presence of a host of new players in the sector has resulted in a shift in

approach and the launch of innovative products% services and value!added benefits.

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+oreign majors have entered the country and announced joint ventures in both life

and non!life areas. Major foreign players include ew Cork 7ife% Aviva% Tokio

Marine% Allianith competition% the erstwhile state sector companies have become aggressive

in terms of product offerings% marketing and distribution.

The Insurance egulatory and 4evelopment Authority :I4A; has played a

proactive role as a regulator and a facilitator in the sectorDs development.

The si


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The marketDs potential has been estimated to have a premium income of "S9 35

billion with a potential si


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According to a survey conducted by Thomson +inancial and 0rime 4atabase%

India ranked as the third most active venture capital market in Asia 0acific

:e$cluding Gapan;. It recorded ''/ deals in *55' with average investment per deal

amounting to "S9 2.6 million. /2 F-+s invested "S9 653 million in '5' Indian

companies during *55'.

4isbursements for *553 are e$pected to be "S9 * billion and are estimated to

reach "S9 '5 billion by *556.

There is an increased interest in India@ 25 F- funds operate in India with the total

assets under management worth about "S9 billion.

The amount has grown nearly twenty fold in the past five years. Most F-s

believe that *553!56 will be driven by a relatively stable economy and new

initiatives that will boost the e!commerce sector% particularly on!line trading and e!

banking sectors.

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INDUSTR> PROFILE

A. Or"'"n an@ De6e#&men! #8 !%e "n@u$!r7

The Bombay Stock ($change :BS(; is known as the oldest e$change in Asia. It

traces its history to the '3/5s% when stockbrokers would gather under banyan trees

in front of MumbaiDs Town &all. The location of these meetings changed many

times% as the number of brokers constantly increased. The group eventually moved

to 4alal Street in '32, and in '32/ became an official organi


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-apital market reforms in India and the launch of the Securities and ($change

Board of India :S(BI; accelerated the integration of the second Indian stock

e$change called the ational Stock ($change :S(; in '66*. After a few years of

operations% the S( has become the largest stock e$change in India.

Three segments of the S( trading platform were established one after another.

The >holesale 4ebt Market :>4M; commenced operations in Gune '66, and the

-apital Market :-M; segment was opened at the end of '66,. +inally% the +utures

and 1ptions segment began operating in *555. Today the S( takes the ',th

position in the top ,5 futures e$changes in the world.

In '66% the ational Stock ($change of India launched S0 -J ifty and

-J Gunior Indices that make up '55 most li#uid stocks in India. -J ifty is a

diversified inde$ of /5 stocks from */ different economy sectors. The Indices are

owned and managed by India Inde$ Services and 0roducts 7td :IIS7; that has a

consulting and licensing agreement with Standard 0oorDs.

In '663% the ational Stock ($change of India launched its web!site and was the

first e$change in India that started trading stock on the Internet in *555. The S(

has also proved its leadership in the Indian financial market by gaining many

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awards such as HBest IT "sage AwardD by -omputer Society in India :in '66 and

'662; and -&I0 >eb Award by -&I0 maga


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Transnational banks are encouraged to operate in the Indian banking sector.

Attempts are made to attract foreign direct investment in different sectors. There is

an increasing entry of foreign portfolio capital due to stock market liberalisation.

0eople are encouraged to invest in stocks through income ta$ benefits and

abolition of capital gains ta$. There is a move to develop a national pension fund

which will be invested in different stocks to get returns out of which pension will

be provided to retired people. It is e$pected that boosting up of stock market will

accelerate the process of capital accumulation and growth.

Stock market development has been an important part of financial liberalisation in

the less developed countries :74-s;. In the pro!liberalisation circle% stock market

is assigned to play an important role in the capitalist development of 74-s.

There are many studies supporting the positive link between stock market

development and growth. 7et us mention some of the recent studies. 1ne important

study was undertaken by 7evine and Lervos :'663;. Their cross!country study

found that the 4evelopment of banks and stock markets has a positive effect on

growth. In another study 7evine :*55); argued that although theory provides

ambiguous relationship between stock market li#uidity and economic growth% the

cross!country data for ,6 countries over the period '62!6) suggest a strong and

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positive relationship :see also 7evine% *55';. &enry :*555; studied a sample of ''

74-s and observed that stock market liberalisations lead to private investment

boom. ecently% Bekaert et al :*55/; analysed data of a large number of countries

and observed that the stock market liberalisation Hleads to an appro$imate '

increase in annual real per capita =40 growthD.

There are some economists who are sceptical. 7ong time back ?eynes :'6);

compared the stock market with casino and commented@ Hwhen the capital

development of a country becomes the by!product of the activities of a casino% the

job is likely to be ill!doneD.

eferring to the study of >orld Bank :'66); Singh :'662; pointed out that stock

markets have played little role in the post!war industrialisation of Gapan% ?orea and

Taiwan. &e argued that the recent move towards stock market liberalisation is

Hunlikely to help in achieving #uicker industrialisation and faster long!term

economic growthD in most of the 74-s.

In this perspective this study e$amines the nature of relationship between stock

market and growth through capital accumulation in India.

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3r#B!% an@ &re$en! $!a!u$ #8 !%e "n@u$!r7

The ever!growing and fast!maturing NIndia MarketN is a lucrative business

destination for developed countries. >ith 2!3 of =40 growth% huge analytical%

young and (nglish speaking work force the NpullN for opportunities are luring. The

bandwidth of NIndia MarketN is enviably wide and very deep.

NMarkets in IndiaN are well protected by legal guidelines and efficient

administrators. >ith a liberal and proactive government at the center the road

ahead for NMarkets of IndiaN is very rosy. NMarket IndiaN has witnessed e$ponential

growth over past one and half decade. 7iberal and transparent financial policies has

effected free!in!flow of +II and as a result of which NIndia MarketN has grown to a

colossal monster in the international market. +oreseeing sure and substantial

returns on investments :1I; companies are pro! actively listing on the stock

market inde$es. =overnment agencies once much hated for red tape and bribes has

shed its image. 0rofessionalism is their new mantra. 0ublic (nterprises like I1-%

1=-% B&(7% T0-% SAI7% MT7% B0-7% &0-7 and =AI7% SBI% 7I-%

&industan Antibiotics 7imited% Air India etc. to name a few% are giving 0rivate

Indian companies a good run for their money. 0rivate giants like eliance

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Industries 7imited% Infosys% Tata% Birla -orporation% Get Airways% anba$y%

Biocon% Bajaj Auto% I-I-I are breaking their own records every financial years.

Fu!ure #8 !%e "n@u$!r7

The stock market is booming in spite of the low agriculture output. The monsoon is

good in an overall sense but still the #uestion remains who takes the creditO The

answer is the karma of the people. I appreciate the Indian politicians and the

industrialists who being pawns of destiny are doing things positive and productive.

India% as a country is running a very good period and the position of planets in the

transit are giving wonderful results.

7ess than one percent of population own stocks and less than '555 individuals

control the market% the majority being the +IIS% the promoters of the company. The

credit should go to media for making stock market headlines.

The #uestion many people in the market ask@

>ill the bull run continueO >hat heights we can reachO

+irst of all% mark my words Indian bourses in the future will be one of the best

investments in the world. There will be a time when it can even reach )555 points

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in the nifty. India will begin one of the best dasas of the Sun% which will work in its

favour. So before *556 Indian bourses should see an all time high.

ow this bull run will continue.

There can be some correction in the BS( sense$ in the 2/55 points level.

The market will hover between the 555! 2555 till mid august.

There will be huge fluctuations.

Investors and new entrants to the market to cool down a bit and come well below

2555.

In any case if you are long terms players then step!in and buy now and forget for

another '5 years. Cou will make a killing in the Indian markets.

Most of the tech companies and the main inde$ will do well but slightly in the

lower side of e$pectations.

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AN OVERVIE2 OF FINANCIAL SERVICES

Since '665Ds% there has been an upsurge in the financial services provided by

various banks and financial institutions. (fficiency of emerging financial system

largely depends upon the #uality and variety of financialP services provided by the

banking and non!banking financial companies.

The term F"nan5"a Ser6"5e$can be defined as% Qactivities% benefits and

satisfactions% connected with sale of money% that offer to users and customers%

financial related valueR.

Suppliers of financial services include the following types of institutions@

Banks and financial Institutions.

&ouse building societies.

Insurances companies.

-redit card issuer companies.

Investment trust and Mutual funds.

Stock e$changes.

7easing companies.

"nit trusts.

+inance -ompanies% and so on.

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+inancial service organiithin the financial services industry the main sectors are banks%

financial institutions and non!banking financial companies.

C%ara5!er"$!"5$ #8 8"nan5"a $er6"5e$)

The financial have the following characteristics.

In!an'"e) An organi


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Fu5!ua!"#n "n @eman@) The demand for certain categories of financial services

e.g.% life insuranceP do fluctuate significantly% according to the level of general

economic activity. This factor puts e$tra pressures on the roles and functions of

marketing in insurance organi


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HpackageD then the product. The package consists of branch location% staff%

services% reputation% advertising and new services offered from time to time.

In8#rma!"#n a$e@. +inancial services industry is an information!based

industry. It involves creation% dissemination% and use of information. Information is

an essential component in the production of financial services. -ost of processing

information is #uite relevant in the profitable production of financial services.

Reu"re ua"!7 La#ur. +inancial services re#uire huge amounts of high

#uality 7abour to deal with information and communication with the market. The

types of 7abour rage from workers performing simple tasks to those undertaking

comple$ analysis and negotiation re#uire years of training and e$perience.

K"n@$ #8 8"nan5"a $er6"5e$)

+inancial services provided by various financial institutions% commercial banks and

merchant bankers can be broadly classified into * categories@

(: A$$e! a$e@ Fun@ a$e@ $er6"5e$.

(0 Fee a$e@ A@6"$#r7 $er6"5e$.

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The important fund based services include:

(#uipment 7easing E+inance.

&ire! 0urchase and -onsumer -redit.

Bill 4iscounting.

Fenture capital.

&ousing +inance.

Insurance Services.

+actoring etc.

The fee based/ advisory services include:

Issue Management.

0ortfolio Management.

-orporate -ounseling.

7oan Syndication.

Merger and Ac#uisition.

-apital estructuring.

-redit ating.

Stock Broking and so on.

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INSURANCE IN INDIA

The insurance sector in India has come a full circle from being an open

competitive market to nationali


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:G,


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3enera In$uran5e

The =eneral insurance business in India% on the other hand% can trace its roots to

the Triton Insurance -ompany 7td.% the first general insurance company

established in the year '3/5 in -alcutta by the British. Some of the important

milestones in the general insurance business in India are@

:G-1)The Indian Mercantile Insurance 7td. set up% the first company to transact all

classes of general insurance business.

:G,1)=eneral Insurance -ouncil% a wing of the Insurance Association of India%

frames a code of conduct for ensuring fair conduct and sound business practices.

:G


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Insurance sector reforms

In '66)% Malhotra -ommittee% headed by former +inance Secretary and BI

=overnor . . Malhotra% was formed to evaluate the Indian insurance industry

and recommend its future direction. The Malhotra committee was set up with the

objective of complementing the reforms initiated in the financial sector.

The reforms were aimed at 5rea!"n' a m#re e88"5"en! an@ 5#m&e!"!"6e 8"nan5"a

$7$!em suitable for the re#uirements of the economy keeping in mind the structural

changes currently underway and recogni


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ii) Competition

0rivate -ompanies with a minimum paid up capital of s.'bn should be allowed

to enter the industry

o -ompany should deal in both 7ife and =eneral Insurance through a single

entity

+oreign companies may be allowed to enter the industry in collaboration with

the domestic companies

0ostal 7ife Insurance should be allowed to operate in the rural market

1nly one State 7evel 7ife Insurance -ompany should be allowed to operate in

each state

iii) Regulatory Body

The Insurance Act should be changed

An Insurance egulatory body should be set up

-ontroller of Insurance :-urrently a part from the +inance Ministry; should be

made independent

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iv) Investments

Mandatory Investments of 7I- 7ife +und in government securities to be reduced

from 2/ to /5

=I- and its subsidiaries are not to hold more than / in any company :There

current holdings to be brought down to this level over a period of time;

v) Customer Service

7I- should pay interest on delays in payments beyond )5 days

Insurance companies must be encouraged to set up unit linked pension plans

-omputeri


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T%e In$uran5e Re'ua!#r7 an@ De6e#&men! Au!%#r"!7 (IRDA

eforms in the Insurance sector were initiated with the passage of the I4A Bill in

0arliament in 4ecember '666. The I4A since its incorporation as a statutory

body in April *555 has fastidiously stuck to its schedule of framing regulations and

registering the private sector insurance companies.

The other decisions taken simultaneously to provide the supporting systems to the

insurance sector and in particular the life insurance companies was the launch of

the I4ADs online service for issue and renewal of licenses to agents.

The approval of institutions for imparting training to agents has also ensured that

the insurance companies would have a trained workforce of insurance agents in

place to sell their products% which are e$pected to be introduced by early ne$t year.

Since being set up as an independent statutory body the I4A has put in a

framework of globally compatible regulations. In the private sector '* life

insurance and general insurance companies have been registered.

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MAJOR DEVELOPMENTS DURIN3 THE >EAR

The year *553!56 witnessed the commercial banks becoming aggressive players in

the home loans market and a dramatic fall in interest rates across all maturities.

This fall in interest rates was driven by the decreasing bank rate and the increased

competition with in the banks themselves and between the Banks and &+-s. There

was a growing emphasis on the adjustable rate loans due to the decreasing interest

rate scenario.

In presenting the "nion Budget for *553!56 the &onDble finance minister

announced that ational &ousing Bank would launch a Mortgage -redit =uarantee

Scheme% which would be provided to all housing loans thereby fully protecting

lenders against default. Towards this end the Asian 4evelopment Bank :A4B;

approved an investment of up to "S9'5 million

(#uivalent in ovember *553 to help pioneer the first mortgage guarantee

company for India. Mortgage financing through the India Mortgage =uarantee

-ompany :IM=-; will help narrow the housing shortfall. The India Mortgage

=uarantee -ompany will improve the efficiency of housing finance and protect

mortgage lenders such as banks and housing finance

-ompanies in cases of borrower default.

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T%e 5rea!"#n #8 IM3C B")

=enerate a greater volume of mortgage lending in the Indian market

7ower down payment re#uirements to as low as /

Broaden the eligibility for mortgages% and

($tend mortgage repayment periods by up to */ years These changes will% in

turn% support capital market development by promoting securiti


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:The Securitisation Act;% banks have been empowered to attach assets of the

defaulters without intervention of lengthy and time consuming court procedures.

This would help the banks for speedier foreclosure of home loan accounts in

default. &B is also operational


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-redit risk management in the Indian conte$t means the housing finance company

has to develop certain in!houseElocal standards for measurement of a borrowersD

ability and willingness to repay the loan for the long term% apply those standards%

measure the performance and continually make adjustments to the standards based

upon results. 1perations risk management means establishing the internal capacity

to make good credit

decisions :reduce risk of loss;% while at the same time managing the assets so that

costs are minimiith the e$ception of &4+-% banks and other housing

finance companies have little e$perience in credit and operational risk and

management in the housing finance sector.

In this conte$t the proposed Mortgage =uarantee -ompany :M=-; could have a

significant influence on the housing finance market provided if the M=- is able to

offer reasonable risk pricing for credit and default risk. >ith M=- in place

offering attractive credit risk mitigation% the housing finance

could see many more new players offering home loans with the market becoming

more competitive. There is a lot of optimism at the &B on the growth prospects

of the mortgage market and the e$pectations are also running high on their ability

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to streamline mortgage legislative environmentP this could further bolster the

market growth and lower the cost of mortgages.

Asset liability mismatch increases the interest rate and li#uidity risk profile of the

&+-s and Banks. The tenure of housing loan has consistently increased from /

years in the past to '/!*5 years at present% however the asset remains in the books

of the lender for 3!'5 years. Banks have the ability to largely mitigate this risk due

to access to diversified resources and lending options. The banking sector% every

year% gets around s ,55! ,/5 billion in savings and demandEcurrent account

deposits out of which around 2/!35 percent can be considered as core float and is

largely long term in nature resulting in banks being largely protected from asset

liability mismatch risk. &owever differences in the maturity profiles of assets and

liabilities continue to be of major concern for &+-Ds.

In future% the ability to foreclose defaulting mortgage assets will become a key

competency for profitability in housing finance market. &+-s and Banks are

increasingly looking at smaller towns for growth. Some &+-s are e$pected to

follow a new business model of becoming the originator of loans% and thereafter

securitising to one of the larger players. As a result% these players will book the

revenues :processing fees; upfront and thereafter

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Transfer the assets to a larger player :commercial bank or general public; in the

form of portfolio sell out or a MBS. &owever% only &+-s with the ability to raise

good #uality assets and having ade#uate distribution channels are likely to survive

the competition.

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MUTUAL FUNDS)

Mutual funds are companies that pool funds from a large number of investors and

invest them on their behalf for a financial return by buying% holding and selling

securities. +unds managed by institutional investors are huge and growing rapidly%

particularly as part of the resolution of pension pressures in various parts of the

world. =lobal Assets under Management :A"M; rose per cent to "S 9 )3.*

trillion in the first half of *55)% according to -erulli AssociatesN latest =lobal

"pdate report. -erulli predicts the global compound annual growth rate for the

industry to be 3 per cent between *553 and *556.

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INDIAN MUTUAL FUND INDUSTR>

The history of Indian mutual fund industry can be distinctly divided into two

phases ! the period before liberali


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Alliance% 0rudential group etc. set up operations in India. As at the end of Ganuary

*55)% there were )) mutual funds with total assets of s. '%*'3%5/5 million.

In +ebruary *55)% the "nit Trust of India Act '6) was repealed and "TI was

broken into two separate entities. 1ne is the Specified "ndertaking of the "nit

Trust of India% still under the control of =overnment of India with A"M of s.

*63%)/5 million as at the end of Ganuary *55). The second is the "TI Mutual +und

7td% sponsored by SBI% 0B% B1B and 7I-. It is registered with S(BI and

functions under the Mutual +und egulations. As at the end of 1ctober )'% *55)%

there were totally )' funds in India% with assets under management of about s.

'%*2%*5 million.

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T(4S I MA?(TI= 1+ M"T"A7 +"4S I I4IA

The changing marketing trends in the mutual fund industry in India can be easily

linked and traced to its history of growth. The changes in marketing strategies can

be characteri


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time at a price that is linked to the net asset value :AF;. In case of close!ended

schemes% the total si


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fund companies was to introduce a wide variety of products and due to

oligopolistic competition.

Customer %!nership ocus

Mutual fund companies began to segment their target customers and position their

various products based on the target segment they proposed to address. The target

segment was broadly divided into institutional segment and individual investor

segment. The institutional segment consisted of treasury departments of -orporate%

Trusts etc and suitable products such as Institutional Income schemes and Money

Market schemes were targeted at them. The individual investor was in turn divided

into various segments such as Coung +amilies with small or no children% Middle!

aged 0eople saving for retirement and etired 0eople looking for steady income.

Suitable products such as =rowth and Balanced schemes for young families and

Income schemes for retired people were marketed.

By proper segmentation and by targeting the right product to the right customer%

Mutual +und companies hoped to win the confidence of their customers and NownN

them for a lifetime.

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Speciali&ed Product ' Service ocus

If one observes the trends in the recent past% -ompanies have been taking the

above customer focus further by designing and launching speciali


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N#n *an?"n' F"nan5"a C#m&an"e$

on!Banking +inancial -ompanies :B+-s; are a set of financial service

companies that are #uite uni#ue to India in terms of their si


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This enabled them to build up a wide!ranging clientele from small borrowers to

establish corporate.

Based on the principal activity carried out by the company% B+-s were classified

by BI under five main categories ! (#uipment leasing company :(7;% &ire

0urchase finance company :&0;% Investment company :I-;% 7oan company :7-;

and esiduary non!banking company :B-s ! large companies not coming under

any one particular category;. B+-s achieved their


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COMPAN> PROFILE

UNICON INVESTMENT SOLUTIONS

"I-1 is a financial services company which has emerged as a one!stop

investment solutions provider. It was founded in *55, by two visionary and

flamboyant entrepreneurs% Mr. =ajendra agpal and Mr. am M. =upta% who

possess e$pertise in the field of +inance. The company is head#uartered in ew

4elhi% and has its -orporate office in Mumbai with regional offices in ?olkata%

-hennai% &yderabad and oida

"I-1 is a professionally managed company% lead by a team with outstanding

managerial acumen and cumulative e$perience of more than *55 years in the

financial markets. The company is supported by more than )/55 "niconians and

has an e$tensive network of over '55 branches% 55 plus business partner locations

*/55 remisers providing it with a national footprint.

>ith a customer base of over *55%555% the "I-1 =roup has an eye for the

intricate financial needs of its clients and caters to both their short term and long

term financial needs through a comprehensive bou#uet of investment services.

These services range from offline online trading in e#uity% commodities and

currency derivatives to debt markets to corporate finance and portfolio

management services. The company has a si


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)rd party financial products like mutual funds% insurance products and property

broking. It also provides e$pert Advisory on 7ife Insurance% =eneral Insurance%

Mutual +unds and I01Ds. The distribution network is backed by in!house back

office support to provide prompt and efficient customer service

The (#uity broking arm K "I-1 Securities 0vt. 7td offers personaliorth Individuals. The -orporate Advisory

Services arm K "nicon -apital Services :0; 7td offers entire gamut of Investment

Banking services to corporates.

"I-1 can boast of some of the most respected names in the 0rivate (#uity

space like Se#uoia -apital and e$us India -apital as its share holders.

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M"$$"#n V"$"#n

M"$$"#n )

To create long term value by empowering individual investors through superior

financial services supported by culture based on highest level of teamwork%

efficiency and integrity.

V"$"#n )

To provide the most useful and ethical Investment Solutions ! guided by values

driven approach to growth% client service and employee development.

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MANA3EMENT TEAM

Mr. 3aen@ra Na'&a

+ounder -(1

Mr. Ram M 3u&!a

-o!+ounder 0resident

Mr. >.P. Naran'

&ead ! +i$ed Income =roup

Mr. San@ee& Ar#ra

-hief 1perating 1fficer

Mr. V"?a$ Maan

-hief +inancial 1fficer%

&ead K 4istribution

Mr. Tr"na@% K"ran

ational &ead:(!Broking;

Mr. Su%a$% Na'&a

4irector ! Strategic

0lanning 4istribution

M$. Ana" Mu?%"a

-hief -ompliance 1fficer

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Mr. V"a7 C%#&ra

ational &ead :Business Alliances;

Mr. Anura' Na7ar

-hief Technology 1fficer

Mr. A$%"$% Ku?rea

&ead &I -lient elations

M$. Dee&a M#%ame@

&ead !& Training

Mr. San@ee& Ma%aan

&ead :(#uity Broking!1ffline

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"nicon Tie up with various insurance companies@

'. Tata AI= life insurance

*. SBI life insurance

). Ma$ new Cork life insurance

,. eliance

/. Birla sun life

. 7ife insurance corporation of india

2. ?otak Mahindra

3. Met life

". I-I-I prudential

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PRODUCT

EUIT>

Un"5#nPu$

Browser based trading terminal that can be accessed by a uni#ue I4 and password.

This facility is available to all our online customers the moment they get registered

with us.

Fea!ure$)

Trading at S(%BS( and 4erivatives on single screen.

Add multiple scrips on the market watch.

=reater e$posure for trading on the available margin.

-ommon window for display of market watch and order e$ecution.

eal time updating of e$posure and portfolio while trading.

1ffline order placement facility.

56
http://www.uniconindia.in/OnlineServices/Equity.aspx?id=1http://www.uniconindia.in/OnlineServices/Equity.aspx?id=1


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Stop!loss feature.

-ompetitive Brokerages.

Banking integration with I-I-I Bank% &4+- Bank A$is Bank.

0ro$y link to enable trading behind firewalls.

Un"5#nSB"8!

Application based terminal for active traders. It provides better speed% greater

analytical features priority access to elationship Managers.

Fea!ure$)

Trading at S(%BS( and 4erivatives on single screen.

Add any number of scrips in the Market >atch.

Tick by tick live updation of Intraday chart.

=reater e$posure for trading on the margin available

-ommon window for market watch and order e$ecution.

?ey board driven short cuts for punching orders #uickly.

5
http://www.uniconindia.in/OnlineServices/Equity.aspx?id=1http://www.uniconindia.in/OnlineServices/Equity.aspx?id=1


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eal time updation of e$posure and portfolio.

+acility to customi


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C#mm#@"!7

Un"5#n offers a uni#ue feature of a single screen trading platform in M-J and

-4(J."nicon offers both 1ffline 1nline trading platforms. Cou can >alk in

or place your orders through telephone at any of our branch locations

1nline -ommodity Internet trading 0latform through "ni+le$.

7ive Market >atch for commodity market :-4(J% M-J; in one screen.

Add any number of scrips in the Market >atch.

Tick by tick live updation of Intraday chart.

=reater e$posure for trading on the margin available

-ommon window for market watch and order e$ecution.

?ey board driven short cuts for punching orders #uickly.

eal time updation of e$posure and portfolio.

+acility to customi


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De$"!#r7

Un"5#n De$"!#r7 Ser6"5e$ offers demateriali


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Cou can submit your physical shares at the "nicon branch for

demateriali


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Cou can view your demat account over the Internet and avail a host of services.

This facility empowers our clients to view% download% print updated holdings with

respective valuations.

IPO

At "nicon you can invest in the 0rimary markets :Initial 0ublic 1fferings;

online without going through the hassles of filling up any I01 application forms or

any other paperwork.

>e shall make sure that you do not miss the opportunity to subscribeEinvest in a

good I01 issue by providing you an online I01 application form% transfer of funds

online through secured payment =ateways of leading banks like I-I-I% &4+-%

AJIS bank.

In addition to the above we shall provide you with the In!4epth analysis of the I01

issues which shall be hitting the Indian Markets in near future% I01 -alendar%

analysis on the recent I01 listings% prospectus% offer documents and other I01

research reports so as to help you take an informed decision to invest in the I01

issues.

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1nline I01 facility is open to all our registered clients at no cost whatsoever. All

you need is the following to subscribe online to the I01 issues@

A trading account with "nicon

A 4emat account with "nicon

An access to the net banking facility with the Banks through which "nicon has

operational =ateway facility :I-I-I% &4+- and AJIS Bank;.

Cou must have signed a 0ower of Attorney :01A; agreement for applying in

I01Ds online.

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Mu!ua Fun@

Un"5#n 0rovides e$pert advice to its clients for their investments in e#uity debt

markets through Mutual +unds.

1ur e$perts advice you the best investment solutions that suit you and help you to

reach your financial goals.

They help you ascertain your risk profile guide you with the right product mi$

which reduce your ta$ liability% increase your savings enhance your wealth.

>hether you have a conservative% medium or aggressive investment risk appetite%

our e$perts would guide you to build a portfolio to optimi


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Income schemes

Balanced schemes

Money market schemes

). By 1ther Schemes

Ta$ saving schemes

Special schemes

Inde$ Schemes

Sector specific schemes

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In$uran5e

Un"5#n offers all products of =eneral Insurance under one umbrella. "nicon

comprises of a team of distinguished professionals from insurance% finance and

other management disciplines who have vast business managerial e$perience.

"nicon team evaluates the clientNs business environment and studies the risk

profile. based on the results of these evaluations% "nicon team then suggests the

most cost effective % integrated insurance package that is perfectly suited to the

clientNs risk profile.

"nicon has a nationwide network of branches all over India% e#uipped with top

#uality infrastructure facilities% to provide you prompt efficient service.

L"8e In$uran5e

"nicon offers you a 0eace of Mind by offering various life insurance plans for

your uni#ue specific needs. 1ur philosophy is that for every financial problem%

there is a solution also. And we are here to give you complete financial solutions.

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At the same time we offer you very 0rompt eliable 0olicy related service for

enduring relationship.

They offer a very wide range of products to fulfill your particular re#uirements.

Cou can always have an access to our 3) Branch 1ffices situated at prime

locations of the city% or you can call our elationship Manager to guide on your

Investments.

+ollowing is the glimpse of 7ife Insurance 0lans@

0rotection 0lans

Investment 0lans

-hild 0lans

etirementE0ension 0lans

Saving 0lans

I 0lans

&ealth 0lans

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In6e$!men! *an?"n'

O6er6"eB

The Investment Banking arm of "nicon -apital Services :0; 7td. caters to the

funding re#uirements of corporates. 1ur wide e$perience and market knowledge as

a leading securities firm ensures that clientsD re#uirements are met at optimum

cost. By constantly improving our knowledge capital and remaining focused on

client needs% we aim to create significant value for our clients by helping them

e$ecute the right capitalie also intend to initiate merchant

banking services :-apital Markets +undraising; in the short term :Merchant

Banking 7icense pending;

O88er"n'$

Pr"6a!e Eu"!7 (PE S7n@"5a!"#n

6!


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They speciali


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0roject +inance E Term 7oans for ($pansion ! Arranging 7ong!term loans

for setting up new projects from +inancial Institutions and Banks

($ternal -ommercial Borrowings :(-Bs; ! Arranging 7IB1!linked loans

+oreign -urrency -onvertible Bonds :+--B;!Arranging +--B 7oans

>orking -apital +acilities ! Arranging fund!based and non!fund based

limits for clients from Banks at competitive rates

Trade +inance ! Arrangement of trade finance :BuyerNs E SupplierDs -redit;

Inter!-orporate 4eposits K Borrowing and 0lacement

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O*JECTIVES OF THE STUD>

To find the market potential and market penetration of "I-1

IF(STM(T S17"TI1 product offerings in ew delhi.

To collect the real time information about preference level of customers

using 4emat account and their inclination towards various other brokerage

firms e.g. Indiabulls% Sharekhan% Indiainfoline% eligare% Alankit % "nicon.

To e$pand the market penetration of "I-1 IF(STM(T S17"TI1.

To provide pricing strategy of competitors to fight cut throat competition. To

increase the product awareness of "I-1 IF(STM(T S17"TI1 as

single window shop for investment solutions

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RESEARCH METHODOLO3>

Re$ear5% @e$"'n an@ me!%#@##'7

It was important to collect detailed information on various aspects for effective

analysis. As QMarketing today is becoming more of a battle based on information

based society companies with superior information enjoys a competitive

advantage.

Me!%#@##'7 A@#&!e@

The information was collected through person interview and interview was

conducted through the mode of #uestionnaire.

Ana7$"$ #8 Da!a

Da!a 5#e5!"#n

The data collection was collected through primary as well as secondary source.

PRIMAR> DATA )

Primary data was collected from '// respondents using a schedule of #uestion and

a survey was conducted. The tabular and graphical data was Microsoft e$cel.

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SECONDAR> DATA )

Secondary data was collected mainly from internet %printed journals on the capital

markets of India %newspaper articles and books written on the Indian stock

markets.

SAMPLIN3)

Judgment% non!random sampling was used. espondents were re#uest to

help with the schedule at their offices% homes or at the "I-1

IF(STM(T S17"TI1 office.

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DATA ANAL>SIS

$%T% %&%'(SIS 1. )re*erence o* in+estment

FI4.5.1 Result o* )re*erence o* in+estment

Inter)retationTis data so/s tat te mutual *undmar0et is on te rise yet,so te most *a+ored

in+estment continues to e in te sare mar0et.so /it

te more trans)arent system,in+estment in te mar0et

can de*initely e increased.

4


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a.Awareness of unicon facilities

Fig4.5.4 Result of

Awareness of unicon facilities

Interpretation:although there is sufficiently high brand equity among the

target audience yet,it is to be noted that the consumer are not aware of the

facilities provided by company meaning thereby company shouldconcentrate more towards promotional tools and increase it focus on

product awareness rather than brand awareness.

5

!#

2#

&o

(es


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.!A6arene77 o unicon

in8e7t9ent 7o:ution7

as a rand

Fig -!*!. Re7u:t + A6arene77 o unicon

a7 a ;rand

Inter)retation Tis gra) cart so/s tat unicon as a

reasonale amount o* rand a/areness in terms o* ain+estment com)any.tis rand image sould e *urter

le+eraged y te com)any to increase its mar0et sare

o+er its com)etitors.

6


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ABarene$$ #n On"ne S%are Tra@"n'

F"'/.,.0 Re$u! #8 ABarene$$ #8 On"ne S%are Tra@"n'

In!er&re!a!"#n@ >ith the increase in cyber education% the awareness towards

online share trading has increased by leaps and bounds. This awareness is e$pected

to increase further with the increase in Internet education.

1. ABarene$$ #8 UNICON INVESTMENT SOLUTION In6e$! $mar!

a$ a *ran@


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F"'/.,.+ Re$u! #8 ABarene$$ #8 Re"an5e m#ne7 a$ a *ran@

In!er&re!a!"#n) This pie!chart shows that reliance money has a reasonable amount

of Brand awareness in terms of a premier etail stock broking company. This

brand image should be further leveraged by the company to increase its market

share over its competitors.

0. Sa!"$8a5!"#n Le6e am#n' Cu$!#mer$ B"!% 5urren! r#?er

!


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F"'/.,., Re$u! #8 $a!"$8a5!"#n e6e am#n' 5u$!#mer$ B"!% 5urren! r#?er

In!er&re!a!"#n@ This pie!chart corroborate the fact that Strategic marketing% today%

has gone beyond only meeting Sales targets and generating profit volumes. It

shows that all the competitors are striving hard not only to woo the customers but

also to make them Brand loyal by generating customer satisfaction.

"


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Freuen57 #8 Tra@"n'

F"'/.,.< Re$u! #8 Freuen57

#8 Tra@"n'

In!er&re!a!"#n@ Inspite of the huge returns that the share market promises% we see

that there is still a dearth of active traders and investors. This is because of the non

K transparent structure of the Indian share market and the skepticism of the target

audience that is generated by the volatility of the stock market. It re#uires efficient

bureaucratic intervention on the part of the =overnment.

!#


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+. Per5en!a'e #8 earn"n'$ "n6e$!e@ "n S%are Tra@"n'

In!er&re!a!"#n@ This shows that people invest only upto '5 of their

earnings in the stock market% again reiterating the volatile and non!transparent

structure of the Indian stock market. &ence% effective and efficient steps should be

undertaken to woo the customers to invest more in the lucrative stock market.

!1

F"'/.,.1 Re$u! #8 &er5en!a'e #8 earn"n' "n6e$!e@

"n $%are !ra@"n'


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CONCLUSIONS

To get initial success in this field is very difficult. Although the business

generation becomes easier with time as we serve more people who then get added

up in the loyal clientage. Thus time and service are two most factors to get in this

field.

Also the corporate remains a very important segment which gets business in bulk

but retail cannot be ignored which makes your business ticking.

-ustomer remains in the pivotal position.

Based on the findings of our project we would like to suggest the following@!

'. After sales services and follow up calls are important for getting new

references so trained telesales should be appointed for this purpose whose

sole work should be to make feedback calls.

2. Investment is having too many financial products right from 4emat account

to =eneral Insurance and not all the salespeople are familiar with each and

every product so the work force should be segregated each group dealing in

a specific product and the sales target should be given likewise.

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). >hile interacting with the investors I found that most of the customers are

unaware about the Mutual fund. Some of the people look upon mutual funds

and e#uity trading as gambling. Thus a mutual fund awareness program can

help to increase the penetration of mutual funds in the market.

,. IF(STSMAT should declare in black ink that they will charge just '

paisa per transaction. 0eople tend to think that there must be some hidden

charges.

/. s6/5 account opening charges are too high when targeting a corporate so

the company should be fle$ible on this amount.

. IF(STSMAT should provide periodic training for updating the product

knowledge of various financial advisors.

2. -ompany should have a scheme of rewards and recognition to employees

and the field persons to boost their motivation.

!3


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KE> ISSUES AND CONCLUSIONS

Based on the above S>1T analysis and study of the available data I have come

to the following conclusions@

HU3E POTENTIAL@

'. All though relatively new entrants in the market% IF(STSMAT is slowly

but surely gaining a strong hold because it is finally able to grasp the

investment climate in 4elhi. Secondly the branch managers at all the

branches are very knowledgeable with a lot of e$perience in the financial

markets so under their leadership can definitely e$pand its base

*. The entire workforce consists of mostly youngsters% which means they can

be encouraged and motivated to do good work because they have a long way

to go and most of them are eager to climb the ladder.

). ight now eliance is at its nascent stage and will surely grab the major

market under its belt very soon like in other fields.

!4


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Hu'e "n6e$!men!$ !a?"n' &a5e@

a. The Stock Market has been very buoyant until now especially in the

past ) years. This particular trend is very favorable because a soaring

S(S(J means higher returns% which encourages the investors to

invest their money in the market. Although in the past ) months the

market has shown very unpredictable trend and has already lost over

'555 points.

b. So in order to make the best the only thing re#uired is to recruit more

field staff who should be trained in a proper way to get better results.

c. In case of insurance% it re#uires push selling because people always

associate it with emergencies and unpleasant situations like death and

they donDt want to think about such situation let alone prepare for

them% which means it re#uires a lot of conviction on part of the

e$ecutives.

!5


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Lar'e un!a&&e@ mar?e!@

0eople have just opened up to the idea of "7I0s because till now they knew

only two kinds of insurance plans% endowment and term plans so the concept of

high returns with protection is very new to them and slowly and slowly these are

becoming popular so there is a huge market waiting to be tapped.

In the past few years there has been a tremendous inflow of funds in the

Indian market which has lead to the sky rocketing S(S(J. In fact there has been

a tremendous response from the investors not only in shares but mutual funds as

well. The s/255-r infused in the market through the &SB- IF(STSMAT

(#uity mutual +unds is an e$ample of the growing trust of investors who earlier

shied from such investments due to stock market fiascos like the &arshad Mehta

scam or the "S, disaster in which investors lost huge amounts of money as well

as their trust in financial instruments.

>ith the +4I limits being rela$ed% a lot of avenues will open up in the

insurance sector and insurance companies are e$pected to come up with new plans

with a great deal of customi


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RECOMMENDATIONS

The company should effectively focus on advertising.

The company should make more aware to the customer about their investment

process.

Company must provide full information to their employee about sector and there

product and services in which its deals.

Company basically deals in customer relationships it must provide more and

more training and development programme to their relationship manager.

Company must focus on the need and wants of the customer as well as after

sales services, to make the customer more loyal.

Company must give reliable and full information to their customer about their

product and services, and also there benefits.

Company should take care of their employee by giving them cash incentive or

taking those people abroad who have achieve their target or make a large-

volume of sales. nd also give catered meals to staff that work long hours or

those working during peak hours.

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!astly taking the feedback from customer so as to better tune its services with

the customer needs.

!!


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LIMITATIONS

L"m"!a!"#n$ an@ C#n$!ra"n!$

T"me C#n$!ra"n!$@

Time is that factor which cannot be hold by anyone% ones it goes never comes

back.

The researcher found lack of time and done a precise in!dept study and bring out

the available data and information.

Re$#ur5e C#n$!ra"n!$)

(arlier there was not that much researches had been conduct on this topic% so the

researcher find it difficult to group the information and get the best output.

As the researcher had only used the secondary data the lack or impropriety in the

secondary data will also present in the research project

!"


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APPENDI=

UESTIONNAIRE

:. In B%"5% #8 !%e$e F"nan5"a In$!rumen!$ @# 7#u "n6e$! "n!#

Shares Mutual +unds Bonds 4erivatives

0. Are 7#u aBare #8 #n"ne S%are !ra@"n'

Ces o

+. Hear@ a#u! UNICON INVESTMENT SOLUTION INVESTSMART

Ces o

/. D# 7#u ?n#B a#u! !%e 8a5""!"e$ &r#6"@e@ 7 UNICON INVESTMENT

SOLUTION INVESTSMART

Ces o

/. D# 7#u ?n#B a#u! !%e 8a5""!"e$ &r#6"@e@ 7 UNICON INVESTMENT

SOLUTION INVESRTSMART

Ces o

"#


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,. 2"!% B%"5% 5#m&an7 @# 7#u %a6e 7#ur DEMAT a55#un!

eliance money I-I-I 4irect "I-1 India Bulls

1thers :please specify;


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'. *. ).

,. /.

:/. 2%a! m#re 8a5""!"e$ @# 7#u !%"n? 7#u reu"re B"!% 7#ur DEMAT

a55#un!

"2


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*I*LIO3RAPH>

Ar!"5e$

Capital Market eview *55)!5,%0ublished by S&-I7

*##?$

+inancial Management 0rashanna -handra%thedition

+inancial Management ?han Gain %)th edition

Securities Analysis and 0ortfolio Management %+ischer Gordon

esearch Methodology% 4avid .. -ooper and Schindler

2e$"!e$

www.unicon.co.in

www.icicidirect.com

www.investsmart.com

www.nseindia.com
http://www.unicon.co.in/http://www.icicidirect.com/http://www.investsmart.com/http://www.nseindia.com/http://www.unicon.co.in/http://www.icicidirect.com/http://www.investsmart.com/http://www.nseindia.com/

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