Business Plan on Topic

The Investment Avenue.

One-stop informative tool

Submitted to.
Advitiya, Business plan Competition at NICM

Planed by.
Jharana Dave
Student of NSVKMS MBA College Visnagar.

DD. No.
464464

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 Synopsis
1) Introduction:- Overview

2) Various investment tools & its Awareness

3) Requirement of common platform

4) Business idea overview

5) Objective of study

6) Research methodology

7) Chapter Schemes

a. Introduction to the Topic

b. Various Financial tools

c. Availability of Facts and figures regarding investment tools

d. Idea of the project

e. Research Methodology

f. Team Management

g. Supply chain and its Marketing strategies

h. Technical Analysis

i. Financial Analysis

j. USP of the project and its feasibility

k. Conclusion

l. Annexure

m. Glossary

n. Bibliography

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 The Investment Avenue.
One-stop informative tool

A daily business newspaper that provides the information regarding all the investment tools
available in India under one head.

Vision

 To awake Indians regarding Investment and its tools.

Mission

 To become the most reputed and preferable one-stop financial informative tool of India.

Objective of the Research:

 To provider all the information regarding the investment tools available in India under
one head in the hard format.

 To increase awareness among the public regarding the investment tools.

 To increase investors in India.

 To provide easy information about the investment tools in India.

 To provide all the information in the one set of document.

 To make easy availability of the sectoral analysis.

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 Chapter: 1

Introduction: Overview
This chapter describes the overview of the investment and its awareness among the Indians.

Investment is necessary for the growth and prosperity of a nation. The source of investment is
house hold and corporate savings of which household savings consists of a significant share.
Similarly, investment is very important from the point of view of individuals. Since money has
the reinvest able opportunity, nobody will prefer to keep the cash idle. In that case, it will cause a
huge opportunity loss. The main problem for the individual investors is that a majority of them
don’t have a proper knowledge regarding the different investment avenues and they are not at all
familiar with the technical terminologies of finance. Therefore, retail investors are compelled to
confine themselves to the bank and the post office. The objective of this newspaper is to provide
relevant information regarding the different possible methods of investment, different attributes
to judge the worth of investment, different strategies for a layman investor to earn a moderate
return, subject to given risk. It is a value addition in investment literature, as it has discussed the
changing scenario of investment and recommended certain suggestions

In India the situation is that all retail investors who are willing to invest their idle fund in
different types of assets such as share, mutual fund, money market instruments, bonds derivatives
etc. but suffering from lack of confidence as they do not have adequate information. They don’t
know the pros and cons of different schemes. This paper throws some light on these areas and
makes them understand how a properly diversified portfolio can be created by reducing the
unsystematic risk to almost nil. This paper helps to build the intellectual framework of the reader.
If readers are benefited at least by one percent after going through this paper, if the paper enables
to expedite the analytical strategic decision making process of the individual, the purpose of this
newspaper is fulfilled. After reading this news paper, people will come to know a lot of things
which were previously unknown to them; they will be motivated and encouraged to enter into
capital market, they will be able to analyze the different market scenarios and adopt appropriate
strategies according to their own investment preference as well as risk appetite, they will become

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self-sufficient to make their investment decisions themselves – this is the goal, the dream, the
mission and the target of this newspaper.

Investors, Schemes, Tax rate and return

Indian people are unaware regarding the benefit of investments as they don’t know what they
gain and what they save. For increase the investments and development of the country
government make various schemes for encouraging the investors. The main benefit as investors is
that he or she gets exemption from the tax payment. There are different rules made by the
government for the different tools and schemes. For example investor in mutual fund and
Insurance get 100% tax exemption. Investors in equity they also use to pay nominal tax and else
they are able to generate profit from both side i.e. they save money in form of tax and they make
money in form of return. The return also difference from schemes to schemes so it is very
necessary to consider return and block period of the money at the time of investment.
Chapter - 2

Various Investment tools and its Awareness

This chapter has brief explanation regarding the various investment tools that are available in
India.

Capital Market

The capital market is the market for securities, where companies and governments can raise long
term funds. Selling stock and selling bonds are two ways to generate capital and long term funds.
Thus bond markets and stock markets are considered capital markets. The capital markets consist
of the primary market, where new issues are distributed to investors, and the secondary market,
where existing securities are traded.

Money market

The India money market is a monetary system that involves the lending and borrowing of short-
term funds. India money market has seen exponential growth just after the globalization initiative
in 1992. It has been observed that financial institutions do employ money market instruments for
financing short-term monetary requirements of various sectors such as agriculture, finance and

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manufacturing. The varied types of India money market instruments are treasury bills, repurchase
agreements, commercial papers, certificate of deposit, and banker’s acceptance.

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Commodity Market

India commodity market consists of both the retail and the wholesale market in the country. The
commodity market in India facilitates multi commodity exchange within and outside the country
based on requirements. Commodity trading is one facility that investors can explore for investing
their money. The India Commodity market has undergone lots of changes due to the changing
global economic scenario; thus throwing up many opportunities in the process. Demand for
commodities both in the domestic and global market is estimated to grow by four times than the
demand currently is by the next five years.

Real Estate

Real Estate Investment in India is one of most successful investment phenomenon in the last few
decades. Real Estate industry in India has reached a culmination point ever since, the gates were
opened to the foreign investors. This is the reason why many foreign investors are investing huge
amounts of money in this sector. The real estate developments in the country consist of the
following Constructing houses, Townships, Residential complexes, Office buildings, Shopping
malls, IT parks etc.

Insurance
Moreover, awareness about the actual yields earned on insurance products was quite low.
Insurance customers solely depended on insurance agents for product information. The agents
dumped high premium plans on the clients, ostensibly to provide higher income (it had a lot more
to do with higher commissions to the agents) compared to low premium pure insurance plans or
term plans. This would have given exactly the same benefit at a fraction of the cost.
These are major five heads under which the various investment tools are available investor. There
are many schemes which are best for the investment but public are unaware about it.

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 Chapter: 3

Requirement of a common platform

This chapter explains the problem face by investors and the unavailability of any informative
tool that provide all the information about all the investment avenues, so in today’s world it is to
be needed to have such kind of informative tool who provide all the information under one head.

This scenario is basically because of the unawareness of the investment avenues and there benefit
among the public. There are many newspapers, Magazines, Periodicals, new channels are
published in India, who provide the news regarding the investment tools but there is no any other
informative tool are available who provide all the information of the investment tools under one
shelter. India facing the problem of unawareness regarding these tools. I want to launch such a
kind of informative tool that provides all the information to the investors regarding investment
avenues within one hard format. So for this I select a news paper who gave the vast full and fresh
information regarding tools.

Chapter: 4

Business idea and overview:

This chapter describes the whole idea regarding the new venture i.e. new business that I plan.
This chapter contains the idea generation of the newspaper, process to publish it; its designing,
etc are to be covered in it.

Introduction

Investment is necessary for the growth and prosperity of a nation. The source of investment is
households and corporate savings of which household savings consists of a significant share.
Similarly, investment is very important from the point of view of individuals. Since money has
the reinvest able opportunity, nobody will prefer to keep the cash idle. In that case, it will cause a
huge opportunity loss. The main problem for the individual investors is that a majority of them
don’t have a proper knowledge regarding the different investment avenues and they are not at all
familiar with the technical terminologies of finance.

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General idea of the News paper

The Investment Avenue is a News paper who provides the news regarding all the investment
Avenues. It provides the information mainly to the Investors. The investors get information
regarding all different kinds of investment avenues they are of Capital market, debentures,
Bonds, derivatives, debt market, Mutual funds, Insurance sector, Money market, Commodity
market, Real estate etc.
The process to publish it: - For publishing the news paper the following steps are to be taken.

• Write an application to the regional officer of the region and suggest the three names for
the news paper as per your choice.

• This application will send by the regional officer to the officer of Information and
Broadcasting department at Delhi.

• Before publishing the news paper the permission would be taken from the Registrar of
Newspapers for India. The registration procedure would be completed the fees to be paid.

• After that the some name of the news paper will be suggested by the owner to the
authority. After analyzing it the authority has to give permission to adopt one name of the
news paper.

Some basic key ideas regarding its marketing

• The Investment Avenues are published in both the language i.e. in English as well as in
regional language i.e. Gujarati.

• It will be published every day i.e. from Monday to Friday.

• Paper launch in region – Ahmedabad

• Target customer - Investors, students, brooking companies, companies act as financial

intermediaries, as well as common people who are eager to invest but not know how to
invest in it.

• Marketing – Niche marketing (Investor as well as non investors)

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• Size of the paper – normal

• Pages it contains – 15

• Cost - Rs. 2

• Method decided for costing – target costing

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Design of the newspaper

The news paper is divided in to 5 major segments and 3 pages are to be given to each
segment. The 1st segment is only for the capital market related information, the 2nd segment
contain the information regarding the Money market, the 3rd segment contain the news related
to commodity market, the 4th segment contain the news related to Insurances and mutual
funds, the last segment contain the news relating to the Real Estate sector etc.

Chapter: 5

Research methodology

Demand analysis: - Before started the real business it is necessary to knowing the perception
of the public regarding the product. It is essential to know the readiness of the implementation
of this project. For knowing the perception regarding this news paper I undertake one primary
research and I conducted one survey in both the group i.e. investors and as well as non
investors. And after that it analyzed in excel sheet from the collecting data.

• Primary research (Survey in group of investors and non investors).

• Sample Size:- 100

• Sample Unit: - Both investors and non investors.

• Survey Area:- Gandhinagar, Ahmedabad

Market analysis: - I undergo the analysis regarding the marketing strategy, its target
customer and the distribution channel.

• Marketing strategy: - Niches marketing strategy

• Target customer: - The target customer for my product is Institutional Investors, retail
investors, the group of the people who are investors but not investing only because of not
getting information regarding investment avenues, the corporate sectors, Students, etc.

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• Distribution channel: - for reaching to its customer the various agents are appointed for
different area of the Ahmadabad these agents distributed the newspaper to the household.
This newspaper is also available to wholesaler, retailers and the local sellers. I want to
adopt the strategy which was adopted by the Diya Bhaskar for their news paper. As while
conducting the survey I get an idea regarding my target customers, what is there choice,
which price they preferred more etc are to be predefined.

Sustainability / Defensibility of Technology

Technical analysis: - The techno economic feasibility study were conducted, the study
regarding the new technology, new up gradation and analysis regarding its cost are to be
covered in it.

Financial analysis: - The analysis regarding financial perspective, the projected balance
sheet, P & L, and cash flow are to be calculated for the 5 years.

There are various financial analysis are to be undertaken.

Financial Analysis Method

Cost Target costing
Inventory calculation FIFO Method
Depreciation Written down value method.
Debt/equity ratio 1:1
Ratios Profitability ratio, debt ratio, liquidity ratio etc
Projection Balance sheet, P & L, Cash flow, Profitability
Projection etc. for 5 years
Analysis on Working capital
Overall valuation of the project Discounted cash flow model

• Economic feasibility etc: - I also analyze that economic feasibility of the project. The
debt equity ratio, ROI and other profitable ratios are to be calculated on the bases of
above projected statement.

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 Chapter: 6

Chapter’s schemes:-
Chapter 1:-Introduction to the topic

This chapter describes the overview of the investment and awareness among the public regarding
this tools are to be consider, this chapter also contain the tax saving issues, rate and return
associated with this investment.

Chapter 2:- Various financial tools

This chapter describes the various financial tools that are available in the India for the
investment; all this tools are explained fully in this chapter.

Chapter 3:- Availability of Facts and figure regarding investment tools

This chapter describes the media how it going to present and how much they are effective to raise
the awareness of this investment tools among the public. The facts and figure regarding the
investment tools are to be described in it.

Chapter 4:- Idea of the project:-

This chapter explained fully about the business plan, what is the total idea behind it, how it
works, planning to publish it, designing of the newspaper, total cost covered in it, scope of
market, supply chain, advertisement and its availability etc are covered in it.

Chapter 5:- Research Methodology

This chapter contains the detail regarding the method to be used for research. This research helps
to find the perception of the customer regarding the idea that I adopt. This chapter contains the
analysis, interpretation and the total feasibility of our idea.

Chapter 6:- Team Management

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This chapter contains the information regarding the development of team and its management,
the total staff and administration, its working style and its effectiveness. We had decided to have
more than 25 employees in the staff.

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Chapter 7:- Supply chain and its Marketing strategies

This chapter contains the full information regarding the how to distribute it, how to reach it to
their customers, the method to advertise it, the marketing strategies that is to be adopted for
reaching to the customer are to be adopted etc are to be describe in it.

Chapter 8:- Technical Analysis

The latest technologies were going to be used for printing this news paper. The black and white
Web off set will be used for printing the newspaper at the initial stage. After some time we also
planned to adopt the colored Web off set which is just launched in the market and having a cost
of Rs. 1 crore.

Technology Cost
For printing Web off Set Machinery (no.1) 5000000/-
Butter making scanner (no. 2 ) 25000/-
Computer (no. 5) 20000
Simple Printer (no. 1) 10000

Chapter 9:- Financial information

This chapter contains information regarding the Cost of the project, Sources of finance,
Repayment schedule, projected balance sheet, P & L, cash flow statements etc.

Items Cost
Building cost On rent 25000
Office On rent 15000
Machinery 5000000
Computer 20000
Other office equipment 20000
Furniture 15000
Raw material 280000
Administration 30000
Electricity 25000
Infrastructure 15000
Distribution 10000
Advertising 10000

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Total cost is to be incurred is approximately 55 lacs but some reserve is to be needed so we are
planning to have a total net worth of Rs. 80 lacs.

Chapter 10: USP of the project and its feasibility

This chapter contains the overall idea regarding its feasibility and readiness to implement in the
market. It also contain the information regarding the how much it useful to the country, economy,
and also having the details regarding how much it is effective among their target customer.

The USP of the project is combination of all the investment avenues in one umbrella, which
provides all the information as well as will work as a learning tool for the new investors.

Chapter 11: Conclusion

This chapter contains the overall conclusion about the idea and its implementation, its financial
details, marketing strategy, and its feasibility. All this are included in this chapter.

Annexure:

• Glossary

• Abbreviation

• Questionnaire
Bibliography