presentation on iifl
TRANSCRIPT
A Study of the Investment pattern of individuals with special focus on Online trading and Demat account
( with reference to India Infoline Limited at Hyderabad)
Presented By:
Mataprathi Rajendra Prasad S.
1225108221
Company Introduction
Introduction of India Infoline Ltd.,
A one stop financial services shop, most respected for quality of its advice, are a one- stop financial services shop, most respected for quality of its advice, personalized service and cutting-edge technology.
Vision Statement India Infoline vision is to be the most respected company in the financial services space.
Objectives of the studyTo study how Online trading and Demat account process takes place.
To study the perception of investors regarding stock trading at Hyderabad.
To know how much potentiality has India Infoline Ltd., of De-mat and Trading account opening at Hyderabad.
India Infoline 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, GoI bonds and other small savings instruments to loan products and Investment banking. India Infoline also owns and manages the websites www.indiainfoline.com and www.5paisa.com .
The company has a network of 976 business locations (branches and sub-brokers) spread across 365 cities and towns. It has more than 800,000 customers.
Key milestones Incorporated on October 18, 1995 as Probity Research & Services
Launched Internet portal www.indiainfoline.com in May 1999
Commenced distribution of personal financial products like Mutual Funds and RBI Bonds in April 2000
Launched online trading in shares and securities branded as www.5paisa.com in July 2000
Started life insurance agency business in December 2000 as a Corporate Agent
Became a depository participant of NSDL in September 2001
Launched stock messaging service in May 2003
Acquired commodities broking license in March 2004
Launched portfolio management services in August 2004
Listed on NSE and BSE on May 17, 2005
Acquired membership of DGCX; launched investment banking services in 2006
launched consumer finance business under the ‘Money line’ brand in 2007
‘Best broker- India’ award from Finance Asia; ‘Most Improved Brokerage- India’ award from Asia money in July 2008
Received registration for a housing finance company from the National Housing Bank; received ‘Fastest growing Equity Broking House - Large firms’ in India by Dun & Bradstreet in 2009
Expanding Pan India footprintExpanding Pan India footprint365 +365 +
Expanding Pan India footprintExpanding Pan India footprint365 +365 +
Corporate structure
India Infoline Limited
Equity Broking, Investment Banking
Margin funding & Financing
Got NBFC license
(Moneyline Credit)
India Infoline Investment
Services Limited
Member MCX, NCDEX
Commodities Broking
(Housing Finance)
Corporate agent for
ICICI Prudential Life
Insurance Company
Limited
(Corporate Agency)
Mobilization of personal investment products like Mutual funds RBI Bonds Fixed Deposits etc.
(Distribution Service)
Member BSE, NSE Equities &
Derivative Broking Depository
Services Portfolio
Management Services
(Broking Service)
India Infoline Securities Limited
India Infoline Distribution
Company Limited
India Infoline Insurance Services
Limited
India Infoline Commodities
Limited
Wholly owned subsidiaries
Membership of Dubai Gold & Commodities Exchange
Market Timings:
Normal Market / exercise market open time09:00 hours
(Previous Market opened at 09:55 hours)Normal Market close
15:30 hoursSet up cut of time for position limit/collateral value
Till 15:30 hoursTrade Modification end time/ Exercise market
16:15 hours
Trading on BSE and NSE
To provide Transparency,Efficiency and Depth to market, BSE and NSE provide Screen Based Trading on Trading Platforms called ‘BOLT’ and ‘NEAT’.
These platforms provide Trading Facility to Brokers,Sub-brokers and their clients through thousands of trading terminals spread throughout the nation.
BOLT (BSE: 532636)
NEAT- Cash (NSE:INIDAINFO)
Stock exchange The Bombay Stock Exchange (BSE) National Stock Exchange of India Ltd (NSE) India Infoline is a member of both BSE and NSE
India Infoline Ltd., (Script) BSE: 532636 NSE: INDIAINFO
A forerunner in the field of equity research, India Infoline’s research is acknowledged by none other than Forbes as ‘Best of the Web’ and ‘…a must read for investors in Asia’.
Buying shares online trading
Selling shares online trading
14
OVERVIEW OF STOCK MARKET:-
A stock market, or equity market, is a private or public
market for the trading of company stock and derivatives
at an agreed price; these are securities listed on a stock
exchange as well as those only traded privately.
The size of the world stock market is estimated at about
$36.6 trillion US at the beginning of October 2008.
The total world derivatives market has been estimated
at about $791 trillion face or nominal value,11 times the
size of the entire world economy.
PARTICIPANT IN STOCK MARKET:
Hedgers
Reduce risk
Speculators
Bet on future movements – leverage
Arbitrageurs
Take advantage of discrepancy in prices
15
Dematerialization:Dematerialization is the process of converting physical shares (share
certificates) into an electronic form. Shares once converted into dematerialized form are held in a De-mat.
Rematerialization:The process of getting the securities in an electronic form, converted back into the physical form is known as Dematerialization. An investor can rematerialize his shares by filling in a Remat Request Form (RRF). The whole process goes on as follows: ---
DATA ANALYSIS & INTERPRATATION
Table 4.1: Nature of the Occupation of the InvestorsNature of Occupation No. of respondents
Salaried 42Self-employed 32
Retired 8Others 18Total 100
No. of respondents
4232
818
0
1020
3040
50
Salaried Self-employed Retired Others
Salaried
Self-employed
Retired
Others
INTERPRETATION INTERPRETATION
The study was conducted only on investors who are classified on the basis of the occupation, respondent among the salaried are 42%, self-employed are 32%, retired are 8% and others are 18%.The possible of the respondent is dominated by salaried followed by self-employed which may lead to positive impact on Online trading.
Table 4.3: Types of Investment Portfolio of the Investors
INTERPRETATION INTERPRETATION
Majority of investors are looking forward to invest in equity shares constituting 39% of the sample. This is followed by Commodities with 22% and Derivatives with 15%, Mutual Funds with 12%, IPO with 7% and Life Insurance Policy with 5%. Even though this is a high risk preposition it generally tends to bring high returns. Therefore, as most of the investors wish to invest in equity, there is huge potential of Online share trading & Demat a/c.
Types of Investment
Portfolio
No. of respondents
Mutual Funds 12
Equity Shares 39
IPO 07
Commodities 22
Derivatives 15
Insurance 05
Total 100
Table 4.3.: The cross table of investors which preferred to investment in various Portfolio and respondent
satisfaction with services
I I
Nature of Occupation Mutual
Funds
Equity
Shares
IPO Commoditie
s
Derivativ
es
Insuran
ce
Tota
l
Salaried 5 17 3 10 4 2 41
Self-employed 4 8 2 5 3 2 24
Retired 2 10 2 4 6 1 25
Others 1 4 NIL 3 2 NIL 10
Total 12 39 7 22 15 5 100
Table 4.5: The basic objective of Investment of the Investors
INTERPRETATION INTERPRETATION
75% people are interested in (25%) liquidity, (25%) source of income and (25%) capital appreciation. And remaining 25% are interested in (15%) tax benefit, and (10%) others.
Objective of Investment No. of respondents
Liquidity 25
Source of income 25
Tax Benefit15
Capital appreciation 25
Others 10
Total 100
Table 4.6: The important factor for taking account for investment purpose of the investors
INTERPRETATION INTERPRETATION
75% people are considered the factors risk as well as returns but, only 25% considered the both risk and returns factor.
Taking Account for Investment purpose No. of respondents
Risk 30
Returns 45
Both25
Total 100
Table 4.7: The knowledge of share market of the Investors
INTERPRETATION INTERPRETATION
On that basis, we conclude that 25% people know about the securities investment and 20% people know nothing about the securities investments and 55% people have partial knowledge about it, so, some promotional activities are required for increasing the awareness about security market.
knowledge of share market No. of respondents
Partial 55
Completed 25
Nil20
Total100
Table 4.9: The own of Demat A/c & Trading A/c of the Investors
INTERPRETATION INTERPRETATION
Among the sample, only 70% own a Demat account and Trading account. The rest 30% do not own a Demat account and Trading account because of being unaware of the concept. This also indicates the low awareness levels among potential investors regarding various institutions providing online trading and Demat services.
Own of Accounts No. of respondents
Yes 70
No 30
Total 100
If Yes, then which company? (70 samples)Table 4.9 A.: The Investors as Various Companies in
A/c
INTERPRETATION INTERPRETATION
Among the sample, only 70% own a Demat account and Trading account. The rest 30% do not own a Demat account and Trading account because of being unaware of the concept. This also indicates the low awareness levels among potential investors regarding various institutions providing online trading and Demat services.
Own of Accounts No. of respondents
Yes 70
No 30
Total 100
If Yes, then which company? (70 samples)Table 4.9 A.: The Investors as Various Companies
in A/c
INTERPRETATION INTERPRETATION
The survey shows that, out of 70 investors who are aware of Demat, 43% own a Demat and Trading A/c at India Infoline, 17% own a Demat account and Trading A/c at ICICI direct.com, 21% own a Demat and Trading A/c at Share Khan, 13% own a Demat and Trading A/c at Reliance Money and 6% are rest of the investors at any other company Demat and Trading A/c sample. This reveals the brand visibility of Demat services at Hyderabad.
Companies Names No. of respondents % of respondents
India Infoline Ltd. 30 43%
ICICI Direct.com 12 17%
Share khan15
21%
Reliance Money09
13%
Any Other 04
6%
Total70
100%
If Yes, then which company? (70 samples)Table 4.9 B.: The source of Demat account and Online
trading related to India Infoline Ltd.,
INTERPRETATION INTERPRETATION The analysis shows that 11% of the investors consider TV as the most important source of information regarding Demat account. This is followed by Internet with 36%. 14% of the investors preferred Newspaper & Magazines as the information media. 22% of the investors Financial Advisor as financial investment regarding giving the information.10% of the investor are friends through information and remaining are 7% other sources information. This shows that Financial Advisor and Internet ad‘s provide most of the information regarding Demat services. This also shows that respondent is oriented towards seeking dedicated also and therefore may be better investor.
Know about that
accounts
No. of respondents % of respondents
Internet 25 36%
Television 08 11%
Financial Advisor 15 22%
Friends07
10%
Newspaper &
Magazines
1014%
Any Other 05
7%
Total70
100%
If No, then which Company? (30 samples)Table 4.9 C.: The Investors as Various Companies in A/c
INTERPRETATION INTERPRETATION The survey indicates that those who are aware of Demat account and do not possess Demat account intend to open their Demat account at India Infoline Ltd. as 40%. 23% of the investors intend to open their Demat account at ICICI Direct, 17% of the investors intend to open their Demat account at Share Khan, 7% of the investors intend to open their Demat account at Reliance Money and remaining 13% are any other. This shows the brand visibility and preference among the investors.
A/C Opening want
to Companies
Names
No. of respondents % of respondents
India Infoline Ltd. 12 40%
ICICI Direct.com 07 23%
Share khan05
17%
Reliance Money02
7%
Any Other 04
13%
Total30
100%
Table 4.15: The Satisfaction Services from India Infoline Ltd.,
INTERPRETATION INTERPRETATION
Considering the data collected it was found that 10% of people think that broking facility of India Infoline is better than its competitors while 90% think that it’s the vice-versa.
Present Satisfied Services No. of respondents
Yes 90
No 10
Total 100
If Yes, then specify the reason of satisfaction with the current broking house?
(90 samples)Table 4.15 A.: The Satisfaction Services of India Infoline
Ltd.,
INTERPRETATION INTERPRETATION According to the survey, the investors are mainly 33% influenced by quality of service and brokerage charges are 22% provided by the broking agency. Other factors regarding online services do not seem to have much influence on investors. This shows that only those financial institutions that can prove their better quality of service can grab the market share.
Present Satisfied
Services
No. of respondents % of respondents
Operating Expenses 15 17%
Brokerage charges 20 22%
Quality of service 30 33%
Demo’s & other
assistance
05 6%
Periodic holding
statement
15 17%
Others 05 6%
Total 90 100%
Table 4.15 A.1.: The cross table of investing companies preferred and respondent satisfaction with services
I I
Companies Names
Present Satisfied Services
Brokerage charges
Quality of
service
Demo’s & other
assistance
Periodic holding
statement
Others
Total
India Infoline Ltd.
5 8 12 2 5 NIL 32
ICICI Direct.com
3 4 8 1 3 NIL 19
Share khan 2 3 5 2 3 NIL 15
Reliance Money 4 3 3 NIL 2 NIL 12
Any Other 1 2 2 NIL 2 5 12
Total 15 20 30 5 15 5 90
FINDINGSThe awareness levels among investors regarding
Demat account and related services are moderate. The brand visibility of financial institutions providing
online trading and Demat services is very low. Television, Newspaper, Financial Advisor and Internet
are the most important sources of information for the investors regarding Demat services.
Relationship manager changes many times, it creates problem for the offline customers.
People want to invest their money in the security market but they have not the proper knowledge.
Lack of promotional activities undertaken by India Infoline Ltd., at Hyderabad.
SUGGESTIONSProvide the facility of free demonstrations for all.More number of workshops, seminars, and
awareness programs etc. Must be conducted regarding Demat services and online trading and their benefits so as to bring up the awareness levels and channelize the potential investment.
There should be a limited number of clients under the relationship manger. So that he can handle new as well as old customer properly.
Introduction of more private players can help to increase the awareness levels regarding Demat and online trading services.
CONCLUSIONSThe demerits of online trading are: Many banks make the process of opening a Demat account a
cumbersome one by making numerous enquiries about the customers as the process needs it.
The charges involved in opening a Demat account are soaring. Even the other associated charges like transaction charge, statement charges and pledge charges are very high.
The merits of online trading are: Securities can be held safe in a Demat account. This evades the
disadvantage of holding physical share certificates like wear and tear, damage to securities, loss of securities etc.
Demat account also helps the investors to purchase the shares in primary market.
Dematerialization eases the process of selling the securities thereby helping the investor to earn decent income.
THANK YOU…