ACKNOWLEDGEMENT

It is expected human trait to give credit where credit is due. But at time merely thanking
people for help rendered may not suffice, it may however put people across gratitude
one beholds for them.

In preparing this project my ideas have been shaped by several people. Each
interaction enriched my experience and added a new dimension to understand project’s
needs and actions required. It is difficult to list every name.

This project could not have been completed without the support and dedicated efforts
of Mr. Saurabh Gupta, relationship manager, Kotak securities.com (Agra online
division) In spite of his long and busy schedule.

I am also grateful to the staff and my colleagues in the office who provided me
courage and support at the instance of my mistakes.

I feel that it would be an act of sacrilege on my part not to recall with a sense of
humanity and gratitude and the opportunity given by, Dr.Atul Mathur(SPCJIM) to carry
out this project.

I shall be failing in my duty if the great helping hand is constantly extended to me in

this venture by my esteemed parents remain unacknowledged.

MOHD. IRFAN ANSARI

 PREFACE

We all know that the present system of education is based upon the theme ‘loading and
unloading’, it means load the study material in your mind for exam and forget it as you
come out from the examination hall but for fighting the competition that is increasing
day by day, we do need to change this trend and should try to come towards the
practical aspects .The country like Japan has made progress only because of practical
knowledge which they get from different types of technical and managerial institutes
and training in different organization.

That is why for graduate students training in different organization is of great help to
them. I also got an opportunity to have eight weeks summer training in Kotak
securities.com ltd. I undergo my training in the Demat services and online share trading
facilities provided by Kotak securities.com my topic for the study was “Perception of
Potential Investors Towards Stock Market Investment.”

I owe special debt of gratitude to Mr. Saurabh Gupta Manager kotak securities.com
Ltd. to allow me to undergo this eight weeks summer training in his organization.

It was really a wonderful experience to work in kotak securities.com Ltd. I really

enjoyed and learned a lot there.
 Overview

The Kotak Mahindra Group

Kotak Mahindra is one of India's leading financial institutions, offering complete
financial solutions that encompass every sphere of life. From commercial banking,
to stock broking, to mutual funds, to life insurance, to investment banking, the
group caters to the financial needs of individuals and corporates.

The group has a net worth of over Rs. 2,840 crore, employs around 7,800 people in
its various businesses and has a distribution network of branches, franchisees,
representative offices and satellite offices across 264 cities and towns in India and
offices in New York, London, Dubai and Mauritius. The Group services over 1.6
million customer accounts

The Kotak Mahindra Group was born in 1985 as Kotak Capital Management
Finance Limited. Uday Kotak, Sidney A. A. Pinto and Kotak & Company promoted
this company. Industrialists Harish Mahindra and Anand Mahindra took a stake in
1986, and that's when the company changed its name to Kotak Mahindra Finance
Limited.
Since then it's been a steady and confident journey to growth and success.
1986 Kotak Mahindra Finance Limited starts the activity of Bill
Discounting
1987 Kotak Mahindra Finance Limited enters the Lease and Hire
Purchase market
1990 The Auto Finance division is started
1991 The Investment Banking Division is started. Takes over FICOM,
one of India’s largest financial retail marketing networks
1992 Enters the Funds Syndication sector
1995 Brokerage and Distribution businesses incorporated into a
separate company - Kotak Securities. Investment Banking
division incorporated into a separate company - Kotak Mahindra
Capital Company
1996 The Auto Finance Business is hived off into a separate company -
Kotak Mahindra Prime Limited (formerly known as Kotak
Mahindra Primus Limited). Kotak Mahindra takes a significant
stake in Ford Credit Kotak Mahindra Limited, for financing Ford
vehicles. The launch of Matrix Information Services Limited
marks the Group’s entry into information distribution.
1998 Enters the mutual fund market with the launch of Kotak Mahindra
Asset Management Company.
2000 Kotak Mahindra ties up with Old Mutual plc. for the Life
Insurance business.
Kotak Securities launches its on-line broking site (now
www.kotaksecurities.com). Commencement of private equity
activity through setting up of Kotak Mahindra Venture Capital
Fund.
2001 Matrix sold to Friday Corporation
Launches Insurance Services
2003 Kotak Mahindra Finance Ltd. converts to a commercial bank –
the first Indian company to do so.
2004 Launches India Growth Fund, a private equity fund.
2005 Kotak Group realigns joint venture in Ford Credit; Buys Kotak
Mahindra Prime (formerly known as Kotak Mahindra Primus
Limited) and sells Ford credit Kotak Mahindra.
 Kotak Mahindra Group of Companies

Kotak Mahindra is one of India’s premier financial service groups, with a range of over
two dozen highly- specialized products and services spread over a number of
companies, and with a client list that spans more than 500 Indian and International
firms.

Starting as a one-product company in the mid-80s, we’ve evolved into a hill-service

financial conglomerate employing over 1000 dedicated professionals across more than
35 centers in India and in Dubai, London, New York and Mauritius.

We have international partnerships with Goldman Sachs (one of the world’s largest
investment banks and brokerage firms), Ford Credit (one of the world’s largest
dedicated automobile financiers) and Old Mutual (a large insurance, banking and asset
management conglomerate)

Kotak Mahindra offers the most diverse finance solutions that encompass every sphere
of life. From Corporate Finance, to Retail Finance to Investment Banking, to Mutual
Fund, to Insurance, we truly understand the basic everyday needs of an individual as
well as a corporate giant. We offer a wide range of financial solutions that add value to life,
and make it easier to live.

The Group

The Group is organized on the following lines:

 KOTAK MAHINDRA GROUP STRATEGIC BUSINESS UNITS

Asset Finance Wealth Knowledge & Insurance

SBU Management Skills SBU SBU
SBU

Kotak Mahindra Kotak Mahindra

Kotak Securities Ltd.
Bank Ltd. Capital Om Kotak
Company Ltd. Mahindra
Life Insurance

Kotak Mahindra Kotak Mahindra AMC

Primus Ltd.

Kotak Mahindra Venture

Capital Fund

Kotak Mahindra (UK) Ltd.

Kotak Mahindra
(international) Ltd.

Kotak Mahindra Inc.

Kotak Mahindra Bank Limited

On March 22, 2003 Kotak Mahindra become the first Indian Company to convert into a
Bank. The company announced its conversation Kotak Mahindra Bank Ltd., thus
beginning a new chapter in the Banking.
Kotak Mahindra started business nearly 20 years ago with three people in a 300 sq feet
office at Mumbai. Today it has evolved into one of India’s leading financial services
company, with over 2000 people across 50 cities, serving five lakh customers.

The Bank will integrate all the services offered under a single roof and will provide a
single delivery channel for all of them. It will offer complete and practical financial
solutions, including retail finance, stock broking, mutual funds, life insurance and
investment banking. It will offer a wide range of financial products and advisory
services with the clear objective of enhancing the wealth of the customer.

Kotak Mahindra Primus limited (KMPL)

Kotak Mahindra Primus Limited (KMPL) is the car finance company of the Kotak
Mahindra Group. Incorporated on February 28, 1996, KMPL is a joint venture between
Kotak Mahindra Bank Limited and Ford Credit international Inc. (FCII), with KMBL
holding 60% of the equity capital of the Company, and the balance being with FCII.
FCII is a fully owned subsidiary of Ford Motor Credit Company, which is the world’s
largest dedicated Auto financing company.

KMPL has been set up with the objective of financing the retail and wholesale trade of
passenger and multi—utility vehicles (except Ford vehicles) in India. KMPL has
preferred financier tie—ups with most of the manufacturers in India and has strong
relationships with most leading car dealers across the country. It offers customers, retail
finance, for both new as well as used cars and wholesale finance to dealers in the
automobile trade.

Since inception, KMPL has consistently featured among the top car financiers in the
country. KMPL has a nationwide presence at over 40 locations with a very strong
network of Brokers, Direct Marketing Associates and Sales personnel
With strong systems and control support of Ford, strategic tie-ups and subvention
programs with leading car manufacturers, KMPL has been able to consolidate its
position as the largest dedicated car finance company in India. Its annual disbursements
exceed Rs. 850 crores and it reaches out to a customer base of over 60,000 all over the
country.

OM Kotak Mahindra Life Insurance

Kotak Mahindra Bank Limited has now embarked upon a new vista in the financial
services arena with an entry
tnto the recently liberalised Insurance sector, OM Kotak Mahindra Life Insurance
Company Ltd. represents KMBL’s
Life Insurance venture, a 74:26 joint venture with Old Mutual , U.K.
Kotak Mahindra Bank Limited believes that Life Insurance is a logical expansion of its
existing financial services business. The Life Insurance business also offers Kotak
Mahindra with an opportunity to leverage its core strengths of Wealth Management and
Retail Distribution.

Old Mutual is a leading financial services provider in the world, providing a broad
range of financial services in the area of insurance, asset management and banking. It is
a leading life insurer in South Africa, with more than 30% market share. The
partnership with Old Mutual, provide the Kotak Mahindra group with an international
perspective and expertise in the life insurance business.

The company aims to offer Indian consumers a wide range of innovative life insurance
products that would meet their needs.

Kotak Mahindra Asset Management Company. (KMAMC)

Kotak Mahindra Asset Management Company Limited. (KMAMC) is a wholly owned
subsidiary of Kotak Mahindra Bank Limited and the asset manager to Kotak Mahindra
Mutual Fund (KMMF). KMAMC has been appointed as the Investment Manager to
KMMF by Kotak Mahindra Trustee Company limited, which is the trustee to KMMF.
KMMF launched its maiden scheme in December 1998.
The Mutual Fund’s mission is to offer a family of schemes for building investor wealth.
The family of schemes will comprise of diverse portfolios to suit different risk I reward
expectations of Investors. Kotak Mahindra Mutual Fund offered India’s first dedicated
Gilt Fund – Kgilt, KMMF launched its maiden scheme in December 1998.

Kotak Mahindra Mutual Fund (KMMF)

Within three years of commencement of business, KMMF today manages a corpus of
about Rs. 1,600 crores, entrusted to it by over 2.25,000 investors. KMMF offers
schemes catering to investors with varying risk profiles and was the first fund house in
the co “try to launch a dedicated gilt scheme investing only in government securities.
After having pioneered the concept of gilt schemes, KMMF also launched six more
schemes with different investment objectives- IC Liquid, K Bond, K Balance, K 30,
KMNC and K Tech.

Kotak Mahindra Venture Capital Fund

Kotak Mahindra Venture Capital Fund (KMVCF), sponsored by Kotak Mahindra Bank
Limited, was formed to meet the needs of the modem-day entrepreneur. This is the
Group’s formal foray into the venture capital / private equity arena. The Fund partners
with companies for their first and second round of funding requirements, in the
emerging high growth sectors such as Information Technology (IT) Services and
Products, Internet and E-Commerce, Media, Entertainment, Healthcare, including Bio-
Technology, Investments in each company could range from Its. 20 million to Rs. 100
million.

KMVCF is a SEBI registered VCF, with KMBL as the principal investor, and 30 other
private investors. KMBL is the Investment Manager of the Fund.
Knowledge & Skills SBU

Kotak Mahindra Capital Company Ltd.

Kotak Mahindra Capital Company Ltd. (KMCC), was incorporated in 1996 as a joint
venture between Goldman Sachs Group L.L.P., the International Investment Banking
and Brokerage firm and Kotak Mahindra Bank Limited, (KMBL).

As a full service Investment Bank, KMCC offers multi - level approach to complete
client solutions, encompassing quality of service, in depth experience, lair bus ness
practice and innovated solutions, to both domestic and international client needs, an
approach that is flexible to adapt to any market situation in the fist changing global
environment. KMCC in its franchisee business focuses in five core areas Capital
Markets. Mergers & Acquisitions, Corporate Advisory, Structured Finance and
International Operations.

KMCC has advised some of the largest telecom and cement deals in India. KMCC is a
leading player in the field of M & A’s, Divestments and Business Restructuring, Debt
and Equity placements, both in primary and secondary markets and cross-border hind
raising. In the year 1999-2000 KMCC pioneered the first “Book Built” IPO in India
which ushered in international standards & practices in the Indian Capital Markets.
KMCC is also a RBI-approved Primary Dealer in the government securities market.

KMCC was ranked as the highest mobiliser of debt and equity from the Indian Public
markets for 1999-2000 (source Prime Database) and is amongst the top three
Investment Banks in the country.
Kotak Mahindra Securities Ltd. (KMSL)

Kotak Mahindra Securities Ltd. (KMSL) is a wholly owned subsidiary of Kotak

Mahindra Capital Company Ltd. KMSL is a member of wholesale debt market segment
of the National Stock Exchange of India and offers broking services in debt securities
such as Government Securities, Treasury Bills, Certificate of Deposits, Commercial
Paper, Mutual Fund Units, PSU Bonds and Debentures to Institutional and Corporate
Clients as well as Pension Funds.
Kotak Mahindra International Operations
Kotak Mahindra International Ltd. is the international arm of the Kotak Mahindra
Group and was incorporated In March, 1994 in Mauritius with a branch in Dubai.
International operations now cover United Kingdom through Kotak Mahindra (Ut) Ltd.
and the U.S.A. through Kotak Mahindra Inc., U.S.A. Services offered include GDR.
trading and broking, debt syndication, placement of Indian securities and advisory
services. Kotak Mahindra was the first Indian Group to be registered with the Securities
and Futures Authority, UK is also the first and only Indian group to be registered with
the National Association of Securities (NASD), U.S.A.
 Kotak Securities Limited - Wealth Management SBU

Kotak Securities Ltd., a subsidiary of Kotak Mahindra Bank Limited, is one of India’s
largest private brokerage and distribution house. Set up in 1994, by Mr. Uday Kotak, it
has equity participation from Goldman Sachs L.LP. (25%).

Kotak Securities is a corporate member of both the Bombay Stock Exchange (BSE) and
the National Stock Exchange of India Limited (NSE). Its operations include stock
broking, distribution of various Investment products- including private and secondary
placement of debt and equity, mutual funds, fixed deposits and the like. Currently Kotak
Securities is one of the largest broking houses in India with offices in more than fifteen
cities, in India as well as a presence in US, Europe and the Middle East (through our
associate companies Kotak Mahindra U.K Limited and Kotak Mahindra International
Limited, Kotak Mahindra Inc).

Our core strengths are our expertise in equity research and a wide retail distribution
network. We have an outstanding research division involved in macro-economic
studies, industry and company specific equity research, with analysts specializing in
particular economic sectors and large cap stocks.
We have also set up a comprehensive retail distribution system to deal with a variety of
clients and products. This system includes its own sales staff and a retail network
spanning the country.

In August 2000, Kotak Securities launched Kotakstreet.com, its e-broking service for
retail investors on the net and currently has over 20000 registered users.

Businesses
Kotak Securities has five main areas of business:
Institutional Business
This service primarily covers secondary market broking. It caters to the needs of
foreign and Indian nstiwtion2 inventors in Indian equities (both local shares and
GDRs). Kotak Securities’ Institutional Business also incorporates a comprehensive
research cell with sectoral analysts who cover all the major areas of the India economy.

Client Money Management

This division provides professional portfolio management services to High Net-worth
individuals and corporate. Its expertise in research and stock broking gives it the right
perspective from which to provide its clients with investment advisory services that will
tremendously benefit them. Confidentiality and efficient fund management is
maintained at all times, as well as, complete accountability and transparency.

Retail distribution of financial products

Kotak Securities has a comprehensive retail distribution network, comprising more than
7000 agents, more than 40 branches and over 100 franchisees across India. This
network is used for the distribution and placement of a range of financial products that
includes company fixed deposits, mutual funds, Initial Public Offerings, secondary debt
and equity and small savings schemes.

Depository Services
Kotak Securities is a depository participant with the National Securities Depository
Limited for trading and settlement of dematerialized shares. Since it is also in the
broking business, investors who use its-depository services get a dual benefit. They can
use its brokerage services to execute transactions and its depository services them.

On-line trading
Kotak Securities’ on-line broking service Kotakstreet.com offers services for retail
investors, who would like to trade on the Net.

The distinguishing features of Kotakstreet.com from other similar on-line services are
as follows:
a. Its unique product, offering securities as margin.
b. Its market watch facility with real time prices, combined in an order facility not
offered by any other website at present.
About Kotak Securities Limited
KOTAK SECURITIES LIMITED
Kotak Securities Limited, a subsidiary of Kotak Mahindra Bank, is the stock broking
and distribution arm of the Kotak Mahindra Group. The company was set up in 1994.
Kotak Securities is a corporate member of both The Bombay Stock Exchange and The
National Stock Exchange of India Limited. Its operations include stock broking and
distribution of various financial products - including private and secondary placement
of debt and equity and mutual funds. Currently, Kotak Securities is one of the largest
broking houses in India with wide geographical reach. The company has four main
areas of business: (1) Institutional Equities, (2) Retail (equities and other financial
products), (3) Portfolio Management and (4) Depository Services.

• Institutional Business This division primarily covers secondary market

broking. It caters to the needs of foreign and Indian institutional investors in
Indian equities (both local shares and GDRs). The division also incorporates a
comprehensive research cell with sect oral analysts who cover all the major areas
of the Indian economy.
• Client Money Management This division provides professional portfolio
management services to high net-worth individuals and corporate. Its expertise
in research and stock broking gives the company the right perspective from
which to provide its clients with investment advisory services.
• Retail distribution of financial products Kotak Securities has a
comprehensive retail distribution network, comprising approximately 7000
agents, 13 branches and over 20 franchisees across India. This network is used
for the distribution and placement of a range of financial products that includes
company fixed deposits, mutual funds, Initial Public Offerings, secondary debt
and equity and small savings schemes.
 • Depository Services Kotak Securities is a depository participant with the
National Securities Depository Limited and Central Depository Services (India)
Limited for trading and settlement of dematerialized shares. Since it is also in the
broking business, investors who use its depository services get a dual benefit.
They are able to use its brokerage services to execute transactions and its
depository services to settle these.

Kotak Securities' width, volume and quality of offerings regularly earn it

accolades from industry monitors. In recent times, these have included:

Kotak Institutional Equities

Kotak Institutional Equities, among the top institutional brokers in India. It

mainly covers secondary market broking and the marketing of equity offerings,
including IPOs, to domestic and foreign institutional investors. Its full-fledged
research division comprises 18 analysts engaged in macro-economic studies,
industry- and company-specific equity research.

Kotak Institutional Equities has full financial service capability, which includes
derivatives, facilitating market access through affiliates and the distinctive offering of
corporate access to investors. The division services over 250 clients including FIIs,
pension and mutual funds. The division has sales desks in Mumbai, London and New
York, with the India desk also servicing clients in Hong Kong, Singapore, Japan and
Australia.
Awards and Reorganization for Kotak Securities.com

• Finance Asia Award (2006): Best Broker In India

• Euro money Award (2005): Best Equities House In India

• Finance Asia Award (2005): Best Broker In India

• Asia Money (2004): Best Equity House in India

• Finance Asia Award (2004): India's Best Equity House

• Euro money (2004): Best Equity House in India

• Prime Ranking Award (2003-04): Largest Distributor of IPOs

Product features
Kotaksecurities.com offers you a range of products and services to meet your
investing needs. Whether you are a savvy investor or just getting started, you would
find our services just right to meet your specific needs.

a) Kotak Gateway Account:

If you are new to do trading, open a kotak gateway account with
kotaksecurities.com. It’s a basic account that always you to do trading over the
Internet and phone. Offering ease and convenience, Kotak Gateway Account allows
you to make smart investments through its research-based assistance.
You can activate Kotak Gateway Account with any amount less than Rs 1,00,000/-
as margin, by way of cash.
With Kotak Gateway account you can avail of the following:
1. 4 times exposure on the margin.
2. Access to K.E.A.T Desktop.
3. Research Reports on companies, industries and sectors for making informed
investment decisions.
4. Research Advice via SMS.
5. Call and Trade facility.
6. Free news and updates on the markets.
7. Access to 8 mutual funds.
b) Kotak Value Account:
The intelligent investor in you has always opted for something smarter.
Kotaksecurities.com offers you Kotak Value Account, an easy and convenient
account that allows you to trade over the Internet and phone. You can also avail of
Research-based reports to make smarter investments.
You can activate Kotak Value Account with any amount between Rs. 1,00,000/- and
Rs. 5,00,000/- as margin, by way of cash.
With Kotak Value Account you can avail of the following:

1. 5 times exposure on the margin.

2. Access to K.E.AT Desktop.
3. Research Reports on companies, industries and sectors for making informed
investment decisions.
4. Research Advice via SMS.
5. Call and Trade facility.
6. Lower delayed payment interest.
7. Margin finance.
8. Free news and updates on the market.

c) Kotak Privilege Circle:

Why stop at anything when you can potentially do so much more with your money.
Open a Kotak Privilege Circle Account – make more, make most, with all our
premium services readily available for you.
You can activate a KPC Account any amount more than Rs. 10,00,000/- as margin,
by way of cash or stock.
In the Kotak Privilege Circle you can avail of the following:

1. 6 times exposure on the margin.

2. Access to K.E.A.T Premium.
3. Assistance in terms of Research Reports on companies, industries and sectors for
making informed investment decisions.
4. Research Advice via SMS.
5. Call & Trade facility.
6. Lowest delayed payment interest.
7. Margin finance at attractive rates.
8. Dedicated KPC customer service desk available for assisting right from opening
the account to handling day-today problems.
9. Assistance from Relationship Managers for taking care of all your investment
needs.
10. Free news updates from the market.
11. Access to 8 mutual funds.

d) Kotak High Trader Account:

Kotak High Trader Account offers you higher exposure. It is an Auto Square Off
product where only Intra-Day trading can be done and all open orders will be
automatically squared off at 3:10 pm.
You can activate Kotak High Trader Account with any amount less than Rs.
5,00,000/- as margin by way of cash or stock.
With Kotak High Trader Account you can avail of the following:

1. 6 times exposure on the margin.

2. Access to K.E.A.T Desktop.
 3. Assistance in terms of Research Reports on companies, industries and sector for
making informed investments.
4. Research advice via SMS.
5. Free news and updates from the market.
6. Access to mutual funds.

In this product you get charged the normal brokerage according to the slab you fall
in. At the start of the month you will get charged at the slab. At the end of the month
based on your volumes during the month, your effective slab will be calculated and
you will be reversed the brokerage if any.

e) Kotak Freeway Account

This product is designed for the Intraday trader .One can pay a flat fee of Rs.999 as
brokerage and trade unlimited number of times.

You can activate Kotak Freeway Account with any amount less than 1,25,000/-as
margin, by way of cash or stock

With Kotak Free way account you can avail of the following:

a. 4 times exposure on the margin.

b. Access to K.E.A.T Desktop.
c. Assistance in the terms of Research Reports on companies, industries and
sectors of making informed investments.
d. Research advice via SMS.
e. Free news and updates from the market.
f. Access to 8 mutual funds.
Delivery transactions will be charged according to normal slab rates. Intraday
transactions will have a service charge of 0.03% on both sides.

Brokerage Structure indicated as KPC account in attached details.

Please see the charges for special services also attached below.

Charges for Special Services

Kotak Gateway Account

Being a Kotak Gateway account holder, company can avail of the following:
• Access to K.E.A.T. Premium for Rs. 500/- per month.
• Research Advice via SMS for a fee of Rs. 100/- per month.
• Call and trade facility fee for first 20 calls onwards charges will be applicable
at Rs. 20/-per call.
• Delayed payment interest at 18% instead of 24%.

Kotak Value Account

Being a kotak Value Account holder, you can avail of following:

• Access to K.E.A.T. Desktop free of cost and K.E.A.T. Premium at Rs. 300/-
per month.
• Research Advice via SMS for a fee of Rs. 75/- per month.
 • Call and Trade facility for the first 20 calls, and 21st call onwards charges will
be applicable at Rs. 15/- per call.
• Delayed payment interest at 16% instead of 18%.
• Margin finance at 16% p.a.
• A discount of 25% to 50% on the DP charges. Condition Apply.
Kotak Privilege Circle Account
Being a Kotak Privilege Account Circle member, you can avail of the following:
• Access to K.E.A.T. Premium free of cost.
• Research Advise via SMS Free of cost
• Unlimited Call& Trade

Salient Features Offered by Kotak Securities for its' investors:

K.E.A.T. Kotak E-trading Access Terminal is the live terminal on

your desktop. Wherever you go, with you always. With
K.E.A.T. you get live tick-by-tick updated rates.
Research & Advice To assist you in you investment and trading, our team of
experts and professionals give you research reports on
companies, industries and sectors for making informed
investment decisions research inputs and valuable
recommendations.
SMS Alerts Get Free SMS alerts delivered to your mobile phone.
This way you can be in touch with market wherever
you are.
Call and Trade Call and Trade enables you to while or the move. Make
a call from where ever you are and get your market on
 your phone.
Portfolio Advice Get Free Portfolio Advice and constantly monitor the
value of your portfolio with inputs from our expert
advisor.
Margin Trading To help you invest in your dream stocks, we offer you
margin Trading Facility.
Easy IPOs With you easy IPO service, you can now apply for IPOs
at a click of a button. You can even place your bid over
the phone. Which means, no more hassles of standing in
long queues and dious paperwork.
Easy Mutual Funds Easy Mutual Funds is a one stop-shop for multiple
mutual funds. All you have to do is log on our website
or simple caus and invest in the Mutual Fund of your
choice. (Presently 8 Mutual Funds are available for
investing)
Easy Payment Kotak Securities, in collaboration with HDFC bank,
UTI Bank, Citi Bank and Kotak Mahindra Bank
provides online payment facility. You can make and
receive you payment directly to your bank account.
Therefore, no hassle of going to the bank and stand in
long queues, also hassle free transaction of your money
at any time form anywhere across the globe.

Investment options for every one

We have a wide range of products according to your requirements. You can
choose from the following list the plan best suited to your investment needs.

Account Margin Application Brokerage Trading SMS KEAT Delayed

Name Amount Fees Reversible Exposure Interest
Privilege < 10 750 750 6 Times Free Premium 13%
Circle lack Free
Value 5-10 750 250 5 times 75/mnt Normal Free 16%
lacs Premium
300/-mnt
Gateway 50k- 750 250 4 times 100/mnt Normal-Free 18%
5lacs Premium-
500/mnt
Gateway 5k-50k 1200 300 4 times 100/mnt Normal Free 18%
Premium500/
mnt

Initial Cheque/Demand Draft (Margin Amount + Application Fee) should be

drawn in the favour of Kotak Securities.com

Application fee includes D-mat account opening charges and trading account
opening charges.

LEADING THROUGH RESEARCH

Kotak Securities has a strong research team that is involved in macroeconomic studies,
and industry & company specific equity research. Our research constantly helps
investors take informed investment decisions.

KOTAK RESEARCH PRODUCTS

Market Morning: A daily dose of vital market information with concise technical
review of the index along with technical support and resistance of the select stock.

Daily Morning Brief: The Daily Morning Brief features economy and corporate
news enabling buy/sell calls based on the company fundamentals. It also lists bulk
deals, Nifty gainers and losers and forthcoming corporate events.

Stock Ideas: A detailed report based on company fundamentals covering research

team analysis of several pick of the companies, which are primarily strong and offer
high returns.

Sector Reports: The research team regularly studies various factors, which could
impact a particular sector. It provides a list of all stocks / companies which could either
be affected positively or negatively and give recommendations on the same.

Weekly Technical Analysis: A definitive tool that besides summarizing the calls for
the week.

Monthly Research Reports: A consolidated report of all the research calls \ given
during the month with insights that enable wise financial decisions in a time bound
manner.

SMS Alerts: Critical information on the move. Get FREE SMS Alerts delivered to
your mobile phone and stay in touch with the market wherever you are.

SHARES
At Kotak Securities we enhance every opportunity and stretch every possibility in the
equity market for right investment decision based on our in-depth research studies.
DERIVATIVES

Constant risks have stimulated market participants to manage their risks through
various risk management tools. Derivatives product is one such risk management tool.
We will offer you insights into the world of derivatives enabling you to cope with
market volatility.

MUTUAL FUNDS

Kotak Securities offers wealth of mutual fund choices along with competitive research
and advice to help you invest wisely. The investors also have the option of choosing
from some of the best mutual fund options available as we have a tie-up with most of
the leading mutual fund companies in the country.

IPOs
Kotak securities enable you to invest wisely in the potential and lucrative IPOs with air
the ease.

MARGIN TRADING
Kotak Securities enables not just stock trading but also gaining through it. To help you
invest in your dream stock we offer margin-trading facility. We bring up to 50"0 of the
margin.

Kotak Securities.com Services

1- Training in Shares –

Kotak securities.com offers investors various options while trading in shares.

Delivery Basis

This is a delivery based trading system, which is generally done with the intention of
taking delivery of shares. A case position is meant to be settled by delivery, the required
cash or security are blocked in full. For example, if a person place an order to buy 100
shares of Kotak Mahindra Bank, he need to have 100% of the order value in his
available limit/funds, and in case he wishes to sell 100 shares of Kotak Mahindra Bank,
he need to have 100% shares in his Demat balance.

Kotak sec. gives the facility of up to 6 times limits against the margin.

Intra Day Trading

Through super multiple offer investors can do an intra day trading 15 times against this
available funds, where in they take long buy /short sell positions in stocks within the
intention of squaring off the position within the same day settlement cycle. Super
multiple offer will give a much against their limit.

BNST-G (Buy now sell tomorrow)

Buy now sell tomorrow (BNST-G) is a facility that allows investors of sell shares even
on 2nd day after the buy order date, within having to wait for the receipt of shares in to
the Demat account. It is an intermediate option between cash and margin trading some
times people miss huge profits because they have purchased shares one day back and
the shares have not been credited to their Demat..

For Example: – Assume that a person buys shares of XYZ ltd. at 10:30 am. today
suppose at 3:00 pm. today. The price of this script has risen by Rs. 10.But he want to
seel these shares tomorrow because he feels that the script price will rise further. But
the shares would not have come into your Demat/Account tomorrow. BNST-G is the
solution to this problem. If he uses margin funding, he would gain only to the extent of
the price rise that happens today i.e. Rs. 10, However, if he wishes to take advantage of
the price rise over a longer times period he would purchased the share today at 10:30
am. and seel it. say tomorrow using BNST-G at 3:00 pm. In short, BNST-G helps non
intra day square off trading too profitable. BNST-G gives 2 more trading days, thereby
increasing the perfectibility of better returns. So even a cash trader may like to use
BNST-G.

AMO (After Market Order)

In this facility investors buy or sell shares after market hour, for this investors have to
give a order to sell or buy after market hour, next day he built found result for example.

Kotak Security.com Advantages

1. Convenience: Through these services investors care trade on a chair, he can buy
and sell shares self not depend upon any broken. In this syertur any cheque or
paper are not required.
2. Speed: One can get the latest quotes of crips on Kotak Security.com and place
an order almost instantly.
3. KEAT Software provide the best Terminal for the investors within the help of
KEAT investor get profile of any company and see sensex, share prices, nifty
and up and down market position.

Satisfaction: Within Kotak investors satisfy within its services. They care transfer
funds from trading account to their saving account within only 30 seconds and
withdrawal by ATMs.

Kotak comes from KMG, the organization trusted by millions of Indians.

Wide retail distribution network Kotak, 4 wide retail distribution network spans India's
top 187 cities with 122 branches, 1068 sub broken and over 20000 distributors.

Centralized back office.

We have a centralized back office in Mumbai, which has a work force of over 500
dedicated people.

Robust Direct Sales Force

Our strong and well-networked direct sales force of over 650 executives is available
you to sound investment solutions in an ever changing market environment.

Dedicated Customer Service desk :

In order to assist you in every step of investing. Use have a dedicate4d customer
service desk, ready, to answer all your investment related queries.

KEAT

KEAT is a dynamic, trading terminal that facilities instant order placement and more.

Things you can do with KEAT –

 Live ticker rates

 Speedy transactions
 Script alerts
 Customize watch list
 Veeue status of orders
 Intrady alerts and exchange messages.
 Trade report, net position report, exercise report.
 Company research
DEMAT SERVICE:

A Demat account is like a bank account of securities instead of money. In this accounts
shares are transferred in paperless dematerialized electronic form. It increases securities
transparency and control. A person can check the status and holdings of his securities
without visiting DP account.

Demat- Basic Concepts:

The Indian Capital Market has witnessed an unprecedented growth in the past few years
facilitated by modernization of the trading system. Automation of the trading
infrastructure in 1994 has given us a trading system comparable with the best in the
world. The establishment of a settlement guarantees scheme has removed counter pa
risk in trading.

Though the advent of automated trading brought with it several associated benefits s as
transparency in trading and equal opportunity for market players all over the counts the
problems related to settlement of trades such as high instances of bad deliveries, delay
in transfer of ownership has continued. As an answer to settlement problems,

National Securities Depository Ltd. (NSDL) was inaugurated in November 1996 as t

first depository in the country.

In a depository system, securities are held in securities account, which is more or les:
similar to holding funds in bank accounts. Transfer of ownership is done through sin
account transfers. This method does away with ail the risks and the hassles normally
associated with the paper work. Consequently, the account transecting in the deposit
environment is considerably lower as compared to transacting in certificates.
Dematerialization (Demat):

Dematerialization is the process of converting the securities held in physical form

(certificates) to an equivalent number of securities in electronic form and crediting the
same to the investor's Demat account. Dematerialized securities do not have any
certificate numbers or distinctive numbers and are dealt only in quantity i.e. the
securities are fungible.

Dematerialization of holdings is not mandatory. One can hold its securities either in
Demat form or in physical form. One can also keep part of its holdings (in the same
scrip) in Demat form & part in physical form. However, a select list of securities
announced by SEBI can be delivered only in Demat form in the stock exchanges
connected to NSDL

Depository:

A Depository is like a bank where securities are held in electronic (dematerialized)

form. In India, there are two Depositories National Securities Depositories Limited
(NSDL) and Central Depository Services Limited (CDSL). Under the Depositories Act,
investors can avail of the services of the Depositories through Depository Participants
(DP) such m ICICI Bank. DPs are like bank branches wherein shares in physical form
need to be deposited for converting the same to electronic (Demat) form.

Depository Participant:

Under the Depositories Act, investors can avail the services of the depositories through
Depository Participants (DPs) such as Kotak Securities Ltd. DPs are like bank branches
wherein shares in physical forms need to be deposited for convening the same to
electronic (Demat) form.
Market Transaction:

When securities are transferred from a beneficiary account of an investor to a clearing

member account of a broker for ensuring delivery of securities on a stock exchange,
there it is a market transaction.

Off-Market Transaction
When securities are transferred from the beneficiary account of one investor to that of
another, and the transaction does not get routed to the stock exchange, it is an off-
market transaction.

Pledge of Securities:

Beneficiary account holders who do not wish to sell their shares but are willing to avail
(advances against dematted shares can take loans by marking pledge/lien against those
shares. There are always two parties involved under pledge, pledgor (borrower) and
pledgee (lender). There are certain set procedures that need to be followed.

Rematerialization:

Rematerialization is the process of converting the securities held in electronic form in a

Demat account to an equivalent number of securities in physical form (certificates) after
debiting the same from the Demat account.
Benefits Of The Demat:

In the depository system the ownership and transfer of securities takes place by means
of electronic book entries. At the outset, the system rids the capital market of the
dangers related to the handling of paper.

Several direct and indirect Benefits of Demat are:

Elimination of ad deliveries:

In the depository environment once holdings of investor are dematerialized, the

question of bad delivery does not arise i.e. they cannot be held under objection.
Statistically, in physical environment about 20% of the delivered stock constitutes bad
deliveries. Of these, about 1 % are ultimately absorbed by the system as the bad
delivery cost. Rectification of objection usually involves extensive follow up by the
investor. Also the investor cannot sell the securities till they are registered.

This means that in the physical environment, every fifth person taking delivery of
stocks gets securities till they are registered.

Elimination of all risks associated with physical securities:

Dealing in physical securities have associated security risks of theft of stocks,

mutilation of certificates, loss of certificates during movements through duplicate
certificates and advertisements etc. This problem does not arise in depository
environment.

No stamp duty required:

There is no stamp duty for transfer of equity instruments and units of mutual funds in
the depository. In case of physical shares stamp duty of .5% is payable on transfer of
shares.

Immediate transfer and registration of securities:

In the depository environment, once the securities are credited to the investors account
on the payout, he becomes the legal owner of the securities. There is no need to send it
to the company's registrar or registration. Having purchased securities in the physical
environment, the investor has to send it to the company's registrar so that change of
ownership can be registered. The process usually take's around three to four months and
is rarely completed within the statutory framework of two months thus exposing the
investor to opportunity cost of delay in transfer and to risk of loss in transit. To
overcome this the normally accepted practice is to hold the securities in street names
i.e. not to register the change of ownership. However, if an investor miss a book closure
the securities are not good for delivery and the investor would also stand to loose his
corporate entitlements.

Faster settlement cycle:

The exclusive Demat segment follow rolling settlement cycle of t+2 that is the
(settlement of trades will be on the 3rd working day. This will enable faster turnover
stock and more liquidity with the investor.
Faster disbursement of the non-cash corporright bonus etc:

NSDL provides for direct credit of non-cash corporate entitlements to an investo

account, thereby ensuring faster disbursement and avoiding of risk of certificate in
transit.

Reduction in rate of interest of loans granted:

Some banks provide this benefit against pledge of dematerialized securities a

dematerialized securities eliminate the following hassles/risks: getting securities
registered in their name at the time of book closure and risks of stocks coming under
objections when they are sent to the companies registrar for the registration if the
pledgee defaults in payment.

Periodic status report:

This is provided to investors on their holdings and transactions, leading to better

controls.

Dematerialized securities can be delivered in the dematerialized or physical segment

from April 1998 at those stock exchanges where trading in dematerialized securities is
allowed. But physical securities are not allowed to be delivered in dematerialized
segment held with the investors more liquid that physical stocks the process of
conversion of securities from electronic to physical form.
Safety in Demat:

There are various checks and balances in the depository design to ensure of the investor
holdings. These includes:

 A depository can be operational only after registration of SEBI, which is based

on the recommendations from NSDL and their own independent evaluation.
SEBI has prescribed criteria for becoming a DP in the regulations.
 Depository accounts are allowed to effect any debit or credit to an account on the
basis of valid instruction from the client.
 Every day there is a system driven mandatory reconciliation between participant.
 There are periodic inspections into the activities of both DP and a RT agent by
NSDL. This also includes records based on which debits and credits are effected.
 The data interchange between NSDL and its business partners is protected by
standard protection measures.
 All the investors have right to receive an account statement periodically from the
DP.
 Every month NSDL forwards statement of account to a random sample of
investors as a counter check.

Kotak Securities Ltd. Demat Services boasts of an ever-growing customer base of

over 5 Lac Account Holders. In its continuous endeavor to offer best of the class
services to its customers it offers its customers with the following features:

Online access to the Demat account. Check your holdings, transactions, and status of
requests and much more.

Dedicated specially trained customer care executives at its call center, to handle all the
client queries.
Holding and Transaction details available round the clock on IVR (Interactive Voice
Response) system.

With a countrywide network of over 200 branches, you are never far from an Kotak
Securities.com Demat Services outlet.

You will find its service charges very competitive offering the best value for your
money.

You can also avail yourself of online share trading services from kota.com and go a 3 in
1 account inclusive of a Demat, brokerage and an Kotak Securities Ltd. account.

What Kotak Securities.com Services will offer:

 Reduction in brokerage.
 Near-immediate ownership of securities on settlement leading to increased
liquidity.
 Clarity in the title of ownership of securities at all times.
 Ready acceptance of securities for pledge and hypothecation.
 Easy receipt of public issue allotment.
 Quick receipt of corporate benefits like rights and bonus.
What Kotak Securities Ltd. Demat Services will take away:

 Bad deliveries caused by signature mismatch.

 Postal delays and loss of certificates in transit.
 Risks of forgery, counterfeiting and loss due to fire, theft or mutilation.
 Stamp duty (as against 0.5 % payable on physical shares).
 Filling up of transfer deeds.

How to open an Kotak Securities Ltd. Demat account:

 Approach your nearest Kotak Securities Ltd. Branch.

 Fill up the Demat Account Opening Form.
 If your shares are held in joint names, be sure to open your account in the same
order of names. If A, Band C jointly hold 100 shares in the company and have
three share certificates all named as ABC, one DP account will suffice.
 For different combinations of names, open separate accounts for each
combination if the three certificates are held as ABC, BAC and CBA, three
accounts are required.
 There is no limit to the number of accounts you can open.
 You can even open a multiple-sign Depository Participant - Client Agreement,
which each investor must sign at the time of account opening.
 You will receive an account number and a DP ID number with each account.
Quote both these in all future correspondence with Kotak Securities Ltd.
 After opening the account, you can hold shares of any number of companies in
your account, provided all such companies have entered the depository system.

Submit a completely filled up Demat Request Form (DRF) in triplicate for each ISIN
along with defaced physical securities. Kotak Securities Ltd. provides you with one
blank Dematerialization Request Form (DRF). Additional forms are available at any of
the Kotak Securities Ltd. branches offering Demat Services.

BROKERAGE STRUCTURE
Delivery
< 1lakh 0.59%
1 – 5 lakhs 0.55%
5 - 10 lakhs 0.45%
10 - 20 lakhs 0.36%
20 - 60 lakhs 0.27%
60 lakhs - 2 crores 0.23%
> 2 crores 0.18%

Intraday brokerages

< 25 lakhs 0.06% both sides

25 lakhs - 2 crores 0.05% both sides
2 crores - 5 crores 0.04% both sides
> 5 crores 0.03% both sides

Derivatives

Intraday brokerages Settlement

< 2 crores 0.07% both sides 0.09% both sides
2 – 5.5 crores 0.045% both sides 0.073% both sides
5.5 - 10 crores 0.036% both sides 0.046% both sides
10 - 25 crores 0.027% both sides 0.046% both sides
> 25 crores 0.023% both sides 0.032% both sides
Note: Service Tax of 10.2% of brokerage will be charged in addition.

The brokerages charged are as per the volumes that are acheived. Based on these
volumes a client can be either debited or credited an amount which is as per the
volumes he/she may achieve at the end of the month.

Securities Transaction Tax (STT) @ 0.1% of turnover will be charged in addition to the
brokerage on all delivery trades

STT @ 0.02% of turnover will be charged in addition to the brokerage on sell leg of all
non delivery trades in the cash market

STT @ 0.0133% of turnover will be charged in addition to the brokerage on sell leg of
all non delivery trades in the derivative market

DIPOSITORY SERVICE

About NSDL
Although India had a vibrant capital market which is more than a century old,
the paper-based settlement of trades caused substantial problems like bad delivery and
delayed transfer of title till recently. The enactment of Depositories Act in August 1996
paved the way for establishment of NSDL, the first depository in India. This depository
promoted by institutions of national stature responsible for economic development of
the country has since established a national infrastructure of international standards that
handles most of the securities held and settled in dematerialised form in the Indian
capital market.
Using innovative and flexible technology systems, NSDL works to support the
investors and brokers in the capital market of the country. NSDL aims at ensuring the
safety and soundness of Indian marketplaces by developing settlement solutions that
increase efficiency, minimise risk and reduce costs. At NSDL, we play a quiet but
central role in developing products and services that will continue to nurture the
growing needs of the financial services industry.
In the depository system, securities are held in depository accounts, which is
more or less similar to holding funds in bank accounts. Transfer of ownership of
securities is done through simple account transfers. This method does away with all the
risks and hassles normally associated with paperwork. Consequently, the cost of
transacting in a depository environment is considerably lower as compared to
transacting in certificates.
Basic Services
Under the provisions of the Depositories Act, NSDL provides various services to
investors and other participants in the capital market like, clearing members, stock
exchanges, banks and issuers of securities. These include basic facilities like account
maintenance, dematerialisation, rematerialisation, settlement of trades through market
transfers, off market transfers & inter-depository transfers, distribution of non-cash
corporate actions and nomination/ transmission
The depository system, which links the issuers, depository participants (DPs),
NSDL and clearing corporation/ clearing house of stock exchanges, facilitates holding
of securities in dematerialised form and effects transfers by means of account transfers.
This system which facilitates scripless trading offers various direct and indirect services
to the market participants.
NSDL carries out its activities through various functionaries called "Business Partners"
who include Depository Participants (DPs), Issuing companies and their Registrars and
Share Transfer Agents, Clearing corporations/ Clearing Houses of Stock Exchanges.
NSDL is electronically linked to each of these business partners via a satellite link
through Very Small Aperture Terminals (VSATs) or through Leased land lines. The
entire integrated system (including the electronic links and the software at NSDL and
each business partner's end) is called the "NEST" [National Electronic Settlement &
Transfer] system.

Depository Participant (DP) :

The investor obtains Depository Services through a DP of NSDL. A DP can be a bank,
financial institution, a custodian, a broker, or any entity eligible as per SEBI
(Depositories and Participants) Regulations, 1996. The SEBI regulations and NSDL bye
laws also lay down the criteria for any of these categories to become a DP.

Just as one opens a bank account in order to avail of the services of a bank, an investor
opens a depository account with a DP in order to avail of depository facilities. Though
NSDL commenced operations with just three DPs, Depository Participant Services are
now available in most of the major cities and towns across the country.

Issuing Companies/ their Registrar & Transfer Agents :

Securities issued by issuers who have entered into an agreement with NSDL can be
dematerialised in the NSDL depository. As per this agreement, issuer agrees to verify
the certificates submitted for dematerialisation before they are dematerialised and to
maintain electronic connectivity with NSDL. Electronic connectivity facilitates
dematerialisation, rematerialisation, daily reconciliation and corporate actions.

Clearing Corporation / House:

The clearing corporations/houses of stock exchanges also have to be electronically
linked to the depository in order to facilitate the settlement of the trades done on the
stock exchanges for dematerialised shares. At present, all the major clearing
corporations/houses of stock exchanges are electronically connected to NSDL.
The following stock exchanges have linked up with NSDL to facilitate trading and
settlement of dematerialised securities:

• Madras Stock Exchange Ltd. (MSE)

• National Stock Exchange of India Ltd. (NSE)
• Inter-connected Stock Exchange of India Ltd. (ISE)
• OTC Exchange of India (OTCEI)
• The Calcutta Stock Exchange Association Ltd. (CSE)
• The Delhi Stock Exchange Association Ltd. (DSE)
• The Stock Exchange, Mumbai (BSE)
• The Stock Exchange, Ahmedabad (ASE)

PROJECT AT A GLANCE

TITLE: “Perception of potential investor towards stock market

investment.”
NEED OF THE STUDY: Stock market is considered as very much volatile
in its nature. Therefore despite having good savings most of the people do not
attract towards making investment in share market. Not only its volatility but
lack of knowledge, complex decisions to make investment in shares and higher
risk are the other factors which contribute equally in the formation of very hard
reason which restricts the potential investors from making investment in this
unstable capital market.
So it is very much important and necessary to analyze and understand the
perception of potential investor towards share market investment.

OBJECTIVES:
1: Study of work done in kotaksecurities.com.
2: Education of investors
3: Finding the trend of the perception

SOURCES:
Primary data collection:

Potential investors (100)

Secondary data collection

1: kotaksecurities.com
2: kotak.com
3: Books
4: Brochures and forms of kotaksecurities.com
5: Research Papers published by previous researcher.

RESEARCH METHODOLOGY:

1: Tele-calling
2: Interview schedules
3: Questionnaire
4: Observation
ANALYSIS AND INTERPRETATION: Different perception of
potential investor was analyzed according to the frequencies of their
discrete of investing their money.

LIMITATIONS: Although full efforts have been made in the study

but the following limitations should be kept in the mind before making
any conclusion:
1: Shortage of time
2: Sample size was small in
comparison of entire population (150)
3: The respondents may be biased or
influenced by outside factors

Investors’ Preferences and Objectives

Investment constraints are generally in terms of predetermined levels of liquidity

Tax savings, legal compliance, and Investment horizons. On the other hand are
generally imposed on the portfolio by the investor himself, such as a desire to
invest at least 25% of the total funds in sectors such as information technology or
in the other areas at the other extreme in government securities. The investment
policy should be a fine blend of the goals with the constraints and preferences.

To put it differently each investor has his/her own set of objectives and
constraints.
While most of these are known only in qualitative terms, they will eventually
lead to form quantitative objectives and constraints by the investment manager
which in turn from the basis for the formulation of the optimal portfolio.

Investors have highly diverse objectives, constraints and preferences they do

form homogeneous groups each of which distinctly differ from the other.
Investors can be categorized into individual investors and institutional investors.
While most of what we discussed above in principle applies to both, the
following differences can be noticed.

• Individual investors generally treat risk as ‘the possibilities of losing

money’, or some times even as ‘losing money’. Institutions are more
technical, sophisticated and define risk clearly as the standard deviations or
in more general terms as the variability of the return.
• Individual investors can be categorized based on psychological
characteristics such as being an introvert or extrovert, aggressive or
conservative, confidant etc. Institutions, on the other hand fit more readily
in to a definition, based on the nature of their liabilities and the
 requirements of their owners or beneficiaries in to pension funds provident
funds insurance companies, banks etc.
• Investment policies of the investors can be laid down based on what the
investor think is best for them while often the investment policies of the
institutions are determined to a significant extent based on various legal
requirements. For example in India the government lays down the
investment pattern of provident funds and also insurance companies and
the freedom available to portfolio managers while handling the portfolio of
these institutions is limited
• Investment policies of the individuals generally become complex because
they are subject to taxes. Allocation of a significant portion of the portfolio
to tax saving investments makes the job of the portfolio manager much
more difficult as the returns have to be brought up to the desired level with
the remaining funds.
Most of the major investment institutions are other hand exempt from
tax.
Investors’ Goals

The investors have different goals under different market conditions. It is not
sufficient to decide about the investment motives but one has to cautiously watch
the market conditions to protect their goals.

In the recent years, investors have lost a lot of money world wide due to the tech
melt down. Still investors hope to make money and their primary goal of
investment is capital appreciation. Considering the volatility of markets the
question that arises “will capital appreciation still be the primary goal of primary
investors?” the capital appreciation is the obvious answer for majority of the
investors but one has to invest to earn a return on his money in excess of the risk
free rate considering the risk involved in investing stock market. Above all
returns should exceed the average return on a benchmark return; say sensex or
S&P 500 to achieve investment goals.

The primary goal of capital appreciation does not arise if the investors do not
preserve the capital. Therefore, it can be said that capital preservation must be the
primary goal of any investor in comparison to capital appreciation. Many of the
investors have lost money this process, as they are only bothered about making
money by beating the market without even thinking of the survival of their
portfolio.

Few have thought about capital preservation during the 1990s bull runs in the
U.S. as people could make returns of over hundred percent in a few months time.
People started believing that the only way the stock markets can move is upward.
It is said that everything is fine in the bull market. One may call it insane or
irrationality but when reality sets in situations turns worse when it enters a bear
phase.

One key lesson is that market movement change but investors do not.
In spite of sophistication in research, technology, level of maturity in markets, the
fundamental analysis is glaringly insufficient in incorporating the behavior of
investors. It is not that technical analysis is perfect in this area. Time after time
analysts changed the per share valuation without incorporating the behavior of
investors and traders.
 INTRODUCTION TO THE PROJECT

I have undergone a detailed survey of direct investors. In this survey I have

taken sample size of about 200 investors to know their investment,
investment policies in different investment sectors.
 Major concentration was on those investors who do not invest in the stock
market. I have noticed the trends of these investors that where they are interested
to invest their savings.

There are several factors which influence the investment preferences of the
investors like higher return, lower risk, higher degree of certainty, easy
investment and accordingly most of the investors prefer to invest in
insurance policies due to higher degree of certainty, some invest in mutual
funds due to lower risk and almost good return due to diversified investment
of money.

Those who lack knowledge of capital market or do not understand the

intricacies of capital market prefer to invest in postal savings and fixed
deposits. According to the survey, following are the limits of investments
according to the percentage of investment from the investors’ savings.

Chart showing investment limits according to percentage of

savings -
 more than 50%
30% - 50%
15% - 30%
less than 15%

TOTAL = 200 PERSONS

Here in survey of 200 people –

a. Persons with more than 50% savings are = 40
b. Persons with 30% to 50% savings are = 70
c. Persons with 15% to 30% savings are = 68
d. Persons with less than 15% savings are = 22

Investment No. Of Insurance Mutual Post Fixed Others

From persons Funds office Deposits
savings savings
(%)
>50% 40 14 10 3 6 7
30% to 70 32 8 7 18 5
50%
15% to 68 35 3 8 18 4
30%
<15% 22 8 0 6 1 7

Table showing the preferences of investment sector by the investors other

than stock market.

CHART SHOWING THE TREND OF INVESTMENT BY THE

INVESTORS.

INSURANCE

MUTUAL
FUNDS
POSTAL
SAVINGS
FIXED
DEPOSITS
OTHERS

Perception of potential investors towards stock market investment -

Now we must observe the different categories of investors who invest in different
categories according to –
 A. Lack of knowledge
B. High risk
C. Uncertainity
D. Other factors

These are the different categories of different prospective investors who invest a
part of their savings in different investment policies to recover higher rate of
return at lowest risk and uncertainty.

I have surveyed at many places and different persons who can invest in share
markets but presently does not invest in these prospective markets due some
above mentioned reasons. My major constraint was on these type of people who
can be the customers of “KOTAK SECURITIES.COM” in near future as they
might invest in stock markets after overcoming the above mentioned problems.

1. Investors who invest more > 50% of their savings –

 20
18
16
14
12
10
8
6
4
2
0
lack of high risk uncertainty other
knowledge factors

2. Investors who invest 30% to 50% of their savings –

30
25
20
15
10
5
0
lack of high risk uncertainty other factors
knowledge

3.Investors who invest 15% to 30% of their savings-

 35
30
25
20
15
10
5
0
lack of high risk uncertainty other factors
knowledge

4. Investors who invest less than 15% of their savings –

12
10
8
6
4
2
0
lack of higher risk uncertainty other factors
knowledge

The above charts are related to different categories of investors according to my

survey done on about 200 persons in different professions slabs of savings.
Findings of the survey
In this survey I have come across different persons of different professions
who invest differently in different investment schemes according to the
limits of investment from their savings. But the main aspect that came in
front of me was that all the investors have one thing common in their mind,
it is as follows

“ LOWEST RISK FACTOR AND HIGHEST RETURN”

But according to the business policy of different schemes of various companies it

is very obvious that where there is low risk there is most probably the low return.
In case of stock markets the common investor (investor lacking the knowledge of
stock market) feels that stock market is a risky field to get in due to the high
degree of uncertainty in these markets.

So due to this uncertainty factor I asked the investors that what if some experts
assist them to overcome this lack of knowledge ground? And the result was –

yes
no
can't say

Methodology
 The method of survey done by me is as follows –

1. Observe prospective sample size.

2. Prepare questionnaire.
3. Telecalling the customer to fix meeting.
4. Meet the customer.
5. Knowing customer needs.
6. Analysis of available data.
7. Preparing report of findings.

Suggestions
 The following are the suggestions that can be used to convert the prospective
customer into permanent customer of the company.

1. The customer should be educated about the stock market to overcome his
fear of uncertainty in these markets.
2. The customer must be assured of expert advice in case of market
fluctuations.
3. The customer should be educated about the benefits of investment in stock
markets over other investment schemes.
4. Regular customer meets should be arranged to know the satisfaction level
of the customers.

Conclusion

This project is based on a survey of prospective investors who can invest in stock
markets but presently does not invest in these markets. There are many reasons for
 such investors not to invest in stock market. The main reasons for the customer not
to invest in stock markets are –

1. High risk
2. High uncertainty
3. Lack of knowledge
4. High rate of fluctuations

These are the reasons why investors hesitates to invest in stock markets but there are some
suggestions provided in this project through which these hesitations of the customers can
be overcome, so that he can easily invest in stock markets by the assistance of experts of
these markets.

Bibliography

Primary data –
1. Questionnaire
 2. Meetings with investors

Secondary data –

1. Marketing Management – Phillip Kotler

2. Modern Marketing – R.S.N.Pillai & Bagavathi

3. Portfolio Management -- ICFAI University Press

4. Security Analysis -- ICFAI University Press

5. www.kotak.com

6. www.kotaksecurities.com