AN ANALYTICAL STUDY OF INVESTORS OF INDIA INFOLINE LIMITED IN AMRAVATI CITY

Submitted By PRITESH GAJANAN PATKAR (M.B.A. Programm 2011-2013)

Under the Guidance of Prof. SAGAR S. MITKARI

To DEPARTMENT OF MANAGEMENT STUDIES Prof. Ram Meghe Institute of Technology & Research, Badnera, Amravati.

Sant Gadge Baba Amravati University, Amravati (2012-2013)

CONTENTS

Sr. No. 1 2 3 4 5 Introduction Research Problem Research Objectives Scope of Research Research Methodology I. Data collection

Topics

Sampling Unit Extent Sampling Technique Sample Size II. Universe III. Data Analysis 6 7 Limitations Chapterisation

Reference

INTRODUCTION
Every modern economy is based on a sound financial system .A financial system is a set of institutional arrangements through which financial surpluses are mobilized from the units generating surplus income and transferring them to the others in need of them. The activities include production, distribution, exchange and holding of financial assets/instruments of different kinds by financial institutions, banks and other intermediaries of the market. The financial markets have two major components; they are money market and capital market. Financial Markets

Money Market

Capital Market

Securities Market

Other forms of Lending And Borrowing

New issue (Primary) Market

Stock (Secondary)

MONEY MARKET
The Money Market refers to the market where borrowers and lenders exchange short-term funds to solve their liquidity needs. The money market is better known as a place for large institutions and government to manage their short-term cash needs. However, individual investors have access to the market through a variety of different securities. The money market is a subsection of the fixed income market.

CAPITAL MARKET
A market in which individuals and institutions trade financial securities. Organizations/institutions in the public and private sectors also often sell securities on the capital markets in order to raise funds. Thus, this type of market is composed of both the primary and secondary markets. Both the stock and bond markets are parts of the capital markets. For example, when a company conducts an IPO, it is tapping the investing public for capital and is therefore using the capital markets. This is also true when a country's government issues Treasury bonds in the bond market to fund its spending initiatives.

SECURITIES MARKET
It refers to the markets for those financial instruments/claims/obligations that are commonly and readily transferable by sale. It has two inter-dependent and inseparable segments, the new issues (primary) market and the stock (secondary) market. Securities market is an economic institute within which take place sale and purchase transactions of securities between subjects of economy on the base of demand and supply. Also we can say that securities market is a system of interconnection between all participants (professional and nonprofessional) that provides effective conditions: to buy and sell securities, and also
To attract new capital by means of issuance new security(securitization of debt) To transfer real asset into financial asset. To invest money for short or long term periods with the aim of deriving profit.

SECONDARY MARKET
The secondary market enables those who hold securities to adjust their holdings in response to changes in their assessment of risk and return. A market where investors purchase securities or assets from other investors, rather than from issuing companies

themselves. The national exchanges - such as the New York Stock Exchange and the NASDAQ are secondary markets. Secondary markets exist for other securities as well, such as when funds, investment banks, or entities such as Fannie Mae purchase mortgages from issuing lenders. In any secondary market trade, the cash proceeds go to an investor rather than to the underlying company/entity directly. A newly issued IPO will be considered a primary market trade when the shares are first purchased by investors directly from the underwriting investment bank; after that any shares traded will be on the secondary market, between investors themselves. In the primary market prices are often set beforehand, whereas in the secondary market only basic forces like supply and demand determine the price of the security.

PRIMARY MARKET
A market that issues new securities on an exchange. Companies, governments and other groups obtain financing through debt or equity based securities. Primary markets are facilitated by underwriting groups, which consist of investment banks that will set a beginning price range for a given security and then oversee its sale directly to investors. The primary markets are where investors can get first crack at a new security issuance. The issuing company or group receives cash proceeds from the sale, which is then used to fund operations or expand the business. Exchanges have varying levels of requirements which must be met before a security can be sold. Once the initial sale is complete, further trading is said to conduct on the secondary market, which is where the bulk of exchange trading occurs each day. Primary markets can see increased volatility over secondary markets because it is difficult to accurately gauge investor demand for a new security until several days of trading have occurred.

About India infoline Ltd. India Inofline Group

The India Infoline group, comprising the holding company, India Infoline Limited and its wholly-owned subsidiaries, straddle the entire financial services space with offerings ranging from Equity research, Equities and derivatives trading, Commodities trading, Portfolio Management Services, Mutual Funds, Life Insurance, Fixed deposits, Gold bonds and other small savings instruments to loan products and Investment banking. India Infoline also owns and manages the websites http://www.indiainfoline.com and http://www.5paisa.com/

India Infoline Ltd

The Securities and Exchange Board of India authorized Portfolio Manager; it offers Portfolio Management Services to clients. These services are offered to clients as different schemes, which are based on differing investment strategies made to reflect the varied riskreturn preferences of clients.

India Infoline Media and Research Services Limited.

The content services represent a strong support that drives the broking, commodities, mutual fund and portfolio management services businesses. It undertakes equities research which is acknowledged by none other than Forbes as 'Best of the Web' and 'a must read for investors in Asia'. India Infoline's research is available not just over the internet but also on international wire services like Bloomberg (Code: IILL), Thomson First Call and Internet Securities where India Infoline is amongst the most read Indian brokers.

India Infoline Commodities Limited.

India Infoline Commodities Pvt Limited is engaged in the business of commodities broking. We enjoy memberships with the MCX and NCDEX, two leading Indian commodities exchanges, and recently acquired membership of DGCX. We have a multichannel delivery model, making it among the select few to offer online as well as offline trading facilities.

India Infoline Marketing & Services

India Infoline Marketing and Services Limited is the holding company of India Infoline Insurance Services Limited and India Infoline Insurance Brokers Limited. (a) India Infoline Insurance Services Limited is a registered Corporate Agent with the Insurance Regulatory and Development Authority (IRDA). It is the largest Corporate Agent for ICICI Prudential Life Insurance Co Limited. India Infoline was the first corporate agent to get licensed by IRDA in early 2001. (a) India Infoline Distribution Company Limited (distribution of retail loan products) (b) Money line Credit Limited (consumer finance) (c) India Infoline Housing Finance Limited (housing finance)

India Infoline (Asia) Pte Limited

IIFL (Asia) Pte Limited is wholly owned subsidiary which has been incorporated in Singapore to pursue financial sector activities in other Asian markets. Further to obtaining the necessary regulatory approvals, the company has been initially capitalized at 1 million Singapore dollars.

India Infoline.com Distribution Services Ltd.

They have developed a retail distribution infrastructure (Investor Points) to support our online presence. This network, spread over 60 locations, is engaged in the distribution of financial products including fixed deposits, GoI Relief bonds, insurance, mutual funds and IPO's. These Investor Points help us service our broking customers.

Money Tree Consultancy Services

(MTCS) Is a group company of India Infoline Ltd., focusing distribution on Home Loans, Personal Loans, Credit Cards and Non Life Insurance. MTCS extends the distribution reach of financial services providers by using alternate channels like the Internet, telephone, wireless, sales force and events.

Definition of an investor.
An investor is someone who allocates capital with the expectation of a financial

return. The types of investments include- equity, debt, securities, real estate, currency commodity, derivatives such as put and call options, etc. This definition makes no distinction between those in the primary and secondary markets. That is, someone who provides a business with capital and someone who buys a stock are both investors. Since those in the secondary market are considered investors, speculators are also investors. According to this definition there is no difference. An investor puts money behind an idea, a project or a company with the hope of making a financial return. The problem facing entrepreneurs is that there as many different types of investors as there are investors. Actually, its not quite as bad as that, but there is a wide spectrum. To understand that, lets take a very quick dive into the concept of risk/reward.

Research Problem
Research problem allows the researcher to focused on how, what, which, when, why, where question needed to guide the information or research objectives. All the efforts time and money spent to execute research will waste if reach problem are misunderstood.

In a current scenario various investments and saving alternative are available like equity stock investment. It is more difficult for customer who is best for them and suited for them. This study is helpful to find out equity is beneficial to various types of investor and wanted to see, how equity market helpful to investors and to minimize risk of investor to study the perception of investor and to solve this problem. It is also difficult to take decision How much to invest in stock market.

Research objective
To study the various investment avenues of Stock market To find out the preference given by people to Stock market To find out awareness of the people about the Stock market To study the customer perception towards the Stock market

Scope of Research
The study revels and analyzes various investment patterns of people and the popularity of different products. (Fund Investment, Stock market, Insurance,Mutual funds and other securities) provided by the financial institution India Infoline limited for investment.

Research Methodology
The research is the systematic method of collection, recording from in the form of a numerical data relevant to the formulating at problem and arriving at a certain conclusion over the problem bases on the collect data. The research can be defined as logical and systematic means or techniques to discover the new facts, analysis their sequence, interrelationship and casual explanation which were derived with appropriate theoretical frame of reference develop new scientific tools and concept theories which would facilitate reliable and valid study on human behavior.

Data collection Primary data: Data means information which is required in any research to reach into
the result and these data can be acquired by or collected through the interview or through the survey it is called primary data.

a. Questionnaire b. Interview c. Observation

Secondary data: secondary data are those which have been already collected by
someone else and which has been pass through statistical process. The secondary data will be collected through: a. Websites b. Books c. Journals d. News papers e. Magazines

Sampling unit
Sample unit will be the investors of India Infoline Ltd. in Amravati city.

Extent
It is extent for Amravati city

Sampling technique
For the selection of samples in any of the research the researcher has to have a proper technique by means of which can he get the fruitful result so, for this research the sampling technique will be Non-Probability Convenience Sampling. Random sampling, Judgment sampling Quota sampling, probability sampling.

Sample size
The sample size for this study will be 100 investors of the Amravati city.

Data analysis

Analysis of data is a process of inspecting, cleaning transforming and modeling data with goal of highlighting useful information, conclusion and suggestion, and supporting decision making. Data analysis focuses on knowledge discovery for predictive rather than descriptive purposes.

Limitations
The research is limited to academic purpose only. The study will be conducted only with in the universe of Amravati city. The area of study will be restricted to stock market investment only. Time and money may be constraint in research on some event.

Chapterization
1. Introduction
2. Research Objective

3. Research methodology 4. Data analysis & Interpretation 5. Conclusion and observation 6. Suggestion and recommendation 7. Bibliography

Reference: (for synopsis)

Website- http://www.indiainfoline.com Book: Research Methodology, methods and techniques. C.R. KOTHARI.

www.sebi.com Questionnaires.