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SUMMER PROJECT REPORT

A study on Analysis of Financial instruments with reference


to Wealth Management



Prepared for the Mumbai University in the partial fulfillment of the
requirement for the award of the degree in

MASTERS OF MANAGEMENT STUDIES

Submitted By:

Name: Princelie Leslie Fereira
Roll No: 98 Year: 2013-15

Under the guidance of
Professor Sulbha Raorane


SFIMAR

St Francis Institute Of Management And Research, Mt. Poinsur,
S.V.P Road, Borivali (W) Mumbai.

Batch- 2013-2015






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DECLARATION



This is to certify that project report A study on Analysis of Financial instruments with
reference to Wealth Management at Emkay Global Financial Services Ltd.has been
successfully completed by Mr. Princelie Leslie Fereira in partial fulfillment of the requirement
for the award of the degree in Master in Management Studies at St. Francis Institute of
Management and Research under Mumbai University.
The information submitted is true, original and to the best of my knowledge.











Guides Name & Signature Students Name & Signature


















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ACKNOWLEDGEMENT



I would like to express my sincere gratitude to all those who have given their valuable time,
guidance, support and have been a source of inspiration during the course of this project.

My sincere thanks go to Mr. MANOJPATHAK, Head of Business development Emkay Global
Financial services, for giving me an opportunity to gain more knowledge and for his support,
guidance and co-operation throughout to accomplish this project. I would also like to express my
deep sense of gratitude to my Project guide, Mr. MAYURSHAH Product executive, for his
valuable guidance, continuous encouragement and patience in discussing my problems. Words
fall short acknowledging immense support lent to me by the entire team of Private Wealth
Management, who have been of the greatest help in bringing out my task in the present shape.

I would like to thank all the respondents who have offered their opinions and suggestions
through the survey.

I am equally grateful to my summer guide Professor Sulbha Roarane for her continuous help and
support throughout the project.












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EXECUTIVE SUMMARY

Wealth Management as the name suggest is all about developing strategies and investing money
in the right instrument at the right time. The project is based on studying the financial
instruments with regards to wealth Management and its advantages and disadvantages of its
products and services. Investors have different range of investment pattern, their main motive is
to get high returns and maximize the net worth of portfolio thus portfolio management service
comes into picture for this project.

Financial instruments plays a very important role in wealth management, each product performs
in a unique way with respect to economic and current market conditions however these are not
the only indicators, there are many prevailing indicators that affect and change the behavior of
products and services of wealth management.

Emkay Global Financial Services Ltd has mostly high net worth clients the project further
includes studying the investment pattern and the reason behind investing in a particular
instrument. Investors are exposed to various risk while investing, so what measures can be taken
to protect the investors portfolio in a downfall event and what is the clients reaction towards it,
will be studied in the project. Furthermore Emkay offers different in-house products and
services to clients, the strategies and the effectiveness of Products and services will be layed
down in the project.

The report also studies about different asset classes. Each asset plays a vital role in accumulating
wealth for investors the challenges for the performance of these assets and its core benefits are
studied in the project.








4

TABLE OF CONTENTS
Chapter DESCRIPTION
Page
No.
DECLARATION 1
ACKNOWLEDGEMENT 2
EXECUTIVE SUMMARY 3
LIST OF CHARTS 6
1 ORGANIZATIONAL PROFILE 7
1.1 Introduction to the Company 7
1.2 Private Wealth Management 8
1.3 Commodity trading 8
1.4 Investment Banking 9
1.5 Institutional equities 10
1.6 Portfolio Management services 11
1.7 Insurance 12
2
INTRODUCTION TO THE TOPIC
14
2.1 Need for study 14
2.2 Objectives of the Study 14
2.3 Significance of the Study 14

2.4 Drawback of existing system in Emkay Global Financial
services 15
2.5 Opportunity for development in the company 15
2.6 Review of Literature 15-17
3 RESEARCH METHODOLOGY 18
3.1 Research Type 18
3.2 Source of data 18
3.3 Data collection Method 18
3.4 Sample Size 18
3.5 Sampling technique 19
3.6 Preliminary study 19
4
TYPES OF INVESTMENT PRODUCTS AND
SERVICES OF WEALTH MANAGEMENT 20
4.1 Fixed deposit 20
4.2 Bond fund 21
4.3 Corporate Bond 22
4.4 Government Bond 22
5

4.5 Tax Saving Bonds 23
4.6 Mutual Funds 24
4.7 Equity 30
4.8 Venture Capital 30
4.9 Private Equity 31
4.10 National Saving certificate 32
4.11 Public Provident Fund 32
4.12 Post office Time Deposit scheme 32
4.13 Post office Monthly Income Scheme 33
4.14 Stock Market 33
4.15 Commodities 33
4.16 Hedge Funds 33
4.17 Real Estate 34
4.18 Insurance 34
4.19 Structured Product 35
5 DATA ANAYLSIS AND INTERPRETATION 36
5.1 Portfolio study of investors 36-38
6 FINDINGS 45
6.1 Findings 45
6.2 Suggestions and Recommendations 46
6.3 Limitations of the study 47
6.4 Future Scope 48
6.5 Conclusion 49
References 51
Appendix 52















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LIST OF CHARTS
Chart
No.
Title Page No.
7.1 Organization department chart 8
7.2 Working of Mutual fund 25
7.3 Types of Mutual Fund 27
7.4 Portfolio 1 36
7.5 Portfolio 2 37
7.6 Portfolio 3 38
7.7 Age group of respondents 39
7.8 Education of respondents 39
7.9 Occupation of Respondents 40
7.11 Annual Income 40
7.12 Annual Investment 41
7.13 Financial instruments preferred for investment 42
7.14 Parameters considered by investors for making investment 42
7.15 Respondents Investment Objectives 43
7.16 Investment preference to use the bulk money 44




















7

Chapter 1
ORGANIZATIONAL PROFILE
Emkay Global Financial Services Ltd.
1.1 Introduction
Emkay Global Financial Services Ltd. is a name that reckons trust, integrity, growth and a
passion to perform. The company was promoted by two enterprising Chartered Accountants, Mr.
Krishna Kumar Karwa and Mr. Prakash Kacholia, on January 24, 1995. The company is listed on
the BSE and the NSE in 2006 guided at each step, since its inception in 1995, by the mission to
build a seamless world of Investment Opportunities, Emkay Global, along with Emkay
Investment Managers Ltd., Emkay Commotrade Ltd., Emkay Insurance Brokers Ltd., and
Emkay Fincap Ltd., offers comprehensive Investment solutions to more than a lac satisfied
customers throughout the length and breadth of the country.
Emkay Global Financial Services Limited engages in the stock broking, investment banking, and
depository participant for CDSL, and third party products distribution businesses. The company
operates through two segments, Advisory and Transactional Services, and Non-Banking
Financing Activities. It offers institutional equities brokerage services in various categories,
including small cap research, execution, sales service, and overall country research. The
company also provides wealth management products, such as equities and derivatives, online
broking, mutual funds, IPOs, PMS, alternative investments, and depository services. In addition,
it offers investment banking services in equity capital market that comprise IPO/FPO, QIP, rights
issue, FCCB, private equity placement, mergers and acquisitions, and corporate restructuring;
and debt capital market, including capital structuring, term loans, structured and mezzanine debt,
working capital term loans/demand loans, buyer's credit, bank guarantees, letter of credit,
factoring, cash credit, loans against shares, equipment financing, securitization, and non-
convertible debentures and other debt products. Further, the company provides life and general
insurance brokerage services; and commodities trading services for gold, silver, crude oil, natural
gas, metals, rice, maize, spices, oil, and oil seeds. It serves foreign institutional investors, mutual
funds, hedge funds, banks, insurance companies, private equity firms, corporate and industrial
houses, businessmen, and high net worth individuals. The company was formerly known as
8

Emkay Share and Stock Brokers Limited and changed its name to Emkay Global Financial
Services Limited in June 2008.
The different departments of the company are as follows
Organization department chart 7.1


1.2 Private Wealth Management
This department consists of executing financial strategies based on an in-depth understanding of
clients needs, appetite for risk and the products that are available in the market. The main
motive of this department is to generate and maximize clients wealth this is done by offering
various products to clients like Equity and Derivatives, online broking, Mutual funds, Initial
public offering, portfolio management services, alternative investments etc.

1.3 Commodity trading
Emkay Commotrade is based on a technical and fundamental study of all major commodities. It
also continuously works towards recommending various trading strategies. Example Bullion,
Emkay Global
Financial Services
Ltd.
Equity Borking
Private Wealth Management
Commodity Trading
Through Emkay Commodrate Lrd.
Investment Banking
Institutional Equities
Portfolio Management Services
Insurance
Through Emkay Insurance Brokers
Currency derivatices
Non Banking Financial Services
Through Emkay Fincap Ltd.
9

Base Metals, Energy and Agri, etc. Clients, branches, franchisees are regularly kept informed
through SMS and messenger facility.
1.4 Investment Banking
Emkay focuses on the middle market entrepreneurs, and provides them with a complete range of
solutions from strategic advisory services to capital rising, to assist them in implementing their
growth plans.

Equity Capital markets
Emkay started its equity capital markets business in early 2008 with an idea to leverage off
strength of its institutional research and distribution capabilities, they are SEBI registered
Category 1 merchant banker. And service offerings are as follows:-
IPO/FPO, QIP, Rights issue, FCCB, Private Equity Placement, and Mergers & Acquisitions,
Corporate and Restructuring

Debt Capital Markets
The Debt Capital Market team is responsible for all fixed income capital raising activities
undertaken by a broad range of Corporate/Banks and such other Institutions. They advise them in
mobilizing funds for their expansion & diversification projects by arranging resources in form of
Term Loan & Working Capital funding. They facilitate Corporate/Banks in raising short/long
term funds through CPs, CDs (For Banks) & NCDs from Wholesale Debt Market. Furthermore
they assist promoters in raising funds against shares and help financial institutions in securitizing
their receivables and down selling them.
The service offering as follows:-
Capital Structuring
Evaluation of the existing capital structure & arrangement of low cost debtInclusion of new
financial institutions in the consortium/multiple arrangement. Project Funding for Greenfield &
Brownfield projects for Long term arrangement of funds in form of:
a. Term Loan
b. Structured Debt
c. Mezzanine Debt
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Working capital arrangement of funds in form of:
a. Working Capital Term Loan/Demand Loan
b. Buyer's credit
c. Bank Guarantees, Letter of credit
d. Factoring
e. Cash credit, etc.

Others
a. Loan against Shares (Promoter Funding/ Non Promoter (HNI) Funding)
b. Buyer's credit
c. Equipment Financing
d. Securitization
e. Non-Convertible Debentures & Other debt products

1.5 Institutional equities
The Clientele comprises of domestic as well as international institutional investors, Pension
Funds, Hedge Funds, Mutual Funds, Insurance companies, and Banks. It has been rated by Asia
Money Brokers Poll in 2011 among top Indian brokerage houses in various categories including
Small Cap Research, Execution, Sales Service and overall country research.










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1.6 Portfolio Management Services
Emkay Investment Managers Ltd. (EIML) is a SEBI registered Portfolio Manager and
commenced operations of Portfolio Management Services from 1st January 2011 when Emkay
Global transferred its PMS business to EIML. EIML believes that portfolio management is an
amalgam of an idea, passion and conviction. It is the confluence of expertise, experience and
discipline. The PMS team aims to deliver superior wealth creation by way of long term
compounding effect, with investments in good businesses run by great business managers.

PMS Equity
Investment Approach
Emkay keep a regular tab on the capital markets with a view to identify low-risk opportunities
arising in special situations. Emkay judges not only on relative returns, but on absolute returns,
which helps company minimize volatility and downside risks in their clients portfolios. In a bid
to maximize profitability, Emkay adopt a highly disciplined approach to selling, while
minimizing churn and transaction costs.
The strong research based process demands that company employ a meticulous approach to pick
up investment worthy companies based on four basic ideas.

Investment value is assessed by a thorough and rational analysis of facts, while creating
analytical models that help identify robust businesses run by high quality management, at
reasonable prices.




Focus on
the long
term
Consider
investments as
propotionate
ownership of
busines
Seek
margin of
safety
Maintain a
balance
outlook on
the market
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1.7 Insurance
Emkay Insurance Brokers Ltd. (EIBL) is a wholly owned subsidiary of Emkay Global Financial
Services Ltd, EIBL, a dedicated full service Insurance broking firm, offers customized solutions
and personalized services for all clients life as well as general insurance requirements.

The different types of services given by Emkay insurance brokers are as follows
Life and non-life insurance:


Emkay offers both, life and non-life policies. They first rationalize the existing covers, and only
then suggest package policies.


Design comprehensive insurance programs such that their clients get the maximum protection for
their assets and from their liabilities.


Invite quotations from Insurance companies


Compile all the required information for sourcing appropriate insurance quotes.


Evaluate quotations received, in order to arrive at the most appropriate cover and best rate.


Negotiate with insurance companies for optimum premium.


Complete all formalities and procedures for issuance of the insurance policy.

Risk management:


Understand clients business/ projects by collecting details, to identify the risks and exposures
associated with them.


Visit clients plant site (if required) for a physical risk inspection, to get to know the process and
hazards associated with them.


Suggest clients appropriate insurance solutions and loss minimization measures after assessing
the risks.


Assist client in choosing the insurance company for placing insurable risk.

Claim settlement:


Assist in handling claims, including negotiations with surveyors and insurer.


Expediting the claim settlement on behalf of the insured.
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Maintain a proper record of transactions and timely renewal reminders.

Policy reviewing:


Reviewing from time to time, various ongoing policies.


Verify the policy wordings and figures with the requirements.


Auditing the policy wordings and gap analysis.
Amend polices if needed.




































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Chapter 2
INTRODUCTION TO THE TOPIC
2.1 Need for Study
The Current financial environment provides ample opportunities of investment to the investors;
however the decision to invest in the right instrument is too complex for investors to meet their
expectations perfectly. Thus there is a need for study to analyze the investment pattern of
investors and the popularity of different products/services at Emkay Global Financial. Thus
studying the reaction of different products at the time of investment and the tendency, preference
and factors through which an investor is influenced.


2.2 Objectives of the Study
To study the various products and services of the company ranging from equities,
commodities, and Portfolio Management.
To analyze the effectiveness of Financial Instruments on Investors.
To understand the concept of different Wealth Management Products and services in
India.
To know the satisfaction among the investors with reference to services and Products
offered from Emkay Global Financial
Understanding the Companys Operations in Wealth management Department.
To analyze the investment pattern preferred by investors.

2.3 Significance of the Study
Allows wealth managers to monitor threats and opportunities posed by their main
competition.
Helps plan products and services by giving key information on customers financial
services preferences.
Looks at the onshore liquid wealth of mass affluent and high net worth individuals in
India and in India's largest and most affluent states.
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Offers access to key statistics providing a clear picture of the scale, composition and
direction of the developing landscape for investment.
Find the investment pattern of investors and the key to invest in the right product suitable
for an investor.

2.4 Drawbacks of existing system in Emkay Global Financial
Services
Employees find it difficult to analyze reports from the in-house website as reports generated
doesnt give information up to the mark especially to the interest rates at which clients funds are
invested. The reports that are generated by the system give information only to a specific
product/asset/ funds. It doesnt give a consolidated report of the investments made by the clients.

2.5 Opportunity for development in the company
Easing the complications in the website that are used by the employees for data collection and
storing of clients data on the Emkay Financial portal, Employees prepare a manual excel data to
keep a track of interest rates at which clients funds are invested adding to this a consolidated
report of clients portfolio is something which employees miss while analyzing the data at work,
thus adding some technology in the current system will boost the performance of employees
and manual work can be avoided, this in return will save lot of time and quality of work can be
improved.

2.6 Review of Literature
Investment management and Financial Management, By: - Frank J. Fabozzi
Investment beliefs provide a foundation for investment strategies and are important in the design,
construction and management of an investment portfolio. They provide a framework for
considering questions and making informed decisions in an interconnected and consistent
manner.
This book explains the implications of modern portfolio theory as formulated by Markowitz
(1952), a theory that deals with the construction of Markowitz efficient portfolios by rational
risk-averse investors. Once a risk-free asset is introduced, the new efficient frontier is the capital
16

market line, which represents a combination of a risk-free asset and the market portfolio. The
capital asset pricing model is an economic theory that describes the relationship between risk and
expected return, or, equivalently, it is a model for the pricing of risky securities.
The book also further explains how investors should construct efficient portfolios and select the
best or optimal portfolio from among all efficient portfolios. The theory differs from previous
approaches to portfolio selection in that the author demonstrated how the key parameters should
be measured. These parameters include the risk and the expected return for an individual asset
and a portfolio of assets. Moreover, the concept of diversifying a portfolio, the goal of which is
to reduce a portfolio's risk without sacrificing expected return, can be cast in terms of these key
parameters plus the correlation between assets.
Portfolio asset allocation decisions consist of the various aspects involved in such decisions,
specifically focusing on the two essential phases of portfolio construction, strategic asset
allocation and tactical asset allocation. The book also introduced the various models allowing
investors to design a strategic asset allocation benchmark and make it evolve through the whole
investment period, including the Markowitz model and other alternatives related to Black and
Litterman's approach.
There is a concept in the book of behavioral finance in which it explains how investors react to
the striking features of stock market. Further behavioral finance research points to much more
significant differences in the emotions and cognitive biases with which investors interpret and
act on these perceived facts.

The new Wealth Management: The Financial Advisors Guide to Managing and investing
clients assets - By Harold Evensky

The book in brief is all about different strategies to create wealth and manage clients current
assets. The book is written by Harold Evensky a CFP by professional and has laid seventeen
foundations in terms of chapters on how to manage wealth more effectively. He starts off with a
wealth management process where he gives four basic steps on how to manage a client and start
and give proper recommendations for his investment. Furthermore he goes in depth on how to
about the wealth management process by giving a detailed information right from the clients
goals to clients investment performance and evaluation. The books road map further follows to
know the policies and fiduciary and professional standards in preparing a financial plan for a
client.
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The remaining chapters in the book talk all about risk factors, client education mathematics of
investing, investing theory and Asset Allocation. He gives more emphasis on clients education.
In financial planning its very important that a client is aware about the reasons behind a
particular investment or the risk behind taking an investment decisions. The author has created a
separate chapter for this by called Risk is a Four-Letter Word in this chapter he has explained
the mechanism of different risk that a client can face behind an investment, he has not only
limited his knowledge to risk factors but has also given some useful tips on how to manage a risk
that has aggressive investment nature.

Handbook of Finance, Financial Markets and Instruments Editor Frank J. Fabozzi
Publisher John Wiley & Sons, 2008

The book covers general characteristics of different asset classes, derivative instruments, the
markets in which financial instruments trade, and the players in those markets. It also addresses
the role of financial markets in an economy, the structure and organization of financial markets,
the efficiency of markets, and the determinants of asset pricing and interest rates.
Incorporating timely research and in-depth analysis, the Handbook of Finance is a
comprehensive 3-Volume Set that covers both established and cutting-edge theories and
developments in finance and investing. Other volumes in the set: Handbook of Finance Volume
II: Investment Management and Financial Management and Handbook of Finance Volume III:
Valuation, Financial Modeling, and Quantitative Tools.














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Chapter 4
RESEARCH METHODOLOGY

3.1 Research type
The research type used is Descriptive research the study is dependent on both the primary and
the Secondary sources of data. The primary sources of data constitutes the interaction (both
formal and informal) of the researcher with the managers and other officials who are
directly associated with the wealth management operation in Emkay global Financial. Survey
method is adopted to collect primary information from the investors using different scales as
required and the required secondary information for analysis.

3.2 Source of data
Data and information of the study will be collected from both primary and secondary sources.
The primary data is collected from the investors and employees through personal and telephonic
interview.
Secondary data is collected from internet and company website, books, office portals.

3.3 Data Collection method
Questionnaire
Telephonic interview
Observation
3.4 Sample Size
Study of financial instrument for private wealth management will be done out of 500 on 70
clients.



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3.5 Sampling Technique
The sampling procedure followed in this study is Simple random sampling. Simple random
procedures are used to select the respondent from the available database. The research work will
be carried on the basis of structured questionnaire. The study is restricted to the investors of
Devang employee of Emkay Global financial (Financial advisor).

3.6 Preliminary study
Prior to the actual questionnaire design and data collection, Preliminary study was conducted
through general discussion with the experienced personals of Emkay Global Financial.













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Chapter 3
TYPES OF INVESTMENT PRODUCT AND DIFFERENT
SERVICES IN WEALTH MANAGEMENT
4.1Fixed deposit
Money placed with banking institutions for a fixed tenure, e.g. 1, 3, 6, 9, or 12 months to earn
interest. FDs are the most popular today. With FDs you deposit a lump sum of money for a
fixed period ranging from a few weeks to a few years and earn a pre-determined rate of interest.
Merits and Demerits
The main advantage is that FDs from reputed banks are a very safe investment because such
banks are carefully regulated by the Reserve bank of India, RBI, the banking regulator in India.
Note that company FDs isnt as safe as bank FDs because if the company goes bankrupt you
may lose your money. Make sure you check the credit rating of a company before investing in
FDs. You should be especially cautions of companies which offer interest rates significantly
higher than the average to attract your money. The other advantage of FDs is that you have the
option of receiving regular income through the interest payments that are made every month or
quarter. This option is especially useful for retirees. On the flip side, a fixed deposit wont give
you the same returns that you may get in the stock markets. For instance a stock portfolio may
earn you 20-30 percent in a good year whereas a fixed deposit typically earns only 7-10 percent.
A fixed deposit also doesnt offer protection against inflation. If inflation rises steeply during the
maturity of the FD your inflation adjusted return will fall. The rate of interest on FDs varies
accordingly to the maturity with longer deposits generally earning a higher interest rate. Interest
paid on a fixed deposit is paid either monthly or quarterly according to the investors choice. So
if you invest Rs 3 Lakhs in a one year fixed deposit which pays 8 percent you can earn RS 2,000
of interest every month or Rs 6,000 of interest every quarter.


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Interest rates on FDs
The rate of interest on FDs varies according to the maturity with longer deposits generally
earning a higher interest rate.
Note that FDs vary quite a bit from bank to bank so you should search around before investing.
Interest paid on a fixed deposit is paid either monthly or quarterly according to the investors
choice. So if you invest Rs 3 Lakhs in a one year fixed deposit which pays 8 percent you can
earn Rs 2000 of interest every month or Rs 6,000 of interest every quarter.
Effective Return
Before you invest in FDs you need to understand the concept of effective return which is higher
than the rate of interest on the FD. Effective return is relevant if you choose to reinvest your
interest every year.
4.2 Bond fund
It is a fixed income (debt) instrument issued for a period of more than one year with the purpose
of raising capital. The central or state government corporations and similar institutions sell
bonds. A bond is generally a promise to repay the principal along with a fixed rate of interest on
a specified date, called the maturity Date.
Thus a bond is like a loan, the holder of the bond is the lender, and the issuer of the bond is the
borrower, the coupon is the interest, Bonds provide the borrower with external funds to finance
long-term investments or in the case of government bonds to finance current expenditure.
Certificates of deposits (CDs) or commercial paper are considered to be money market
instruments and not bonds.
Bonds and stocks are both securities, but the major difference between the two is that
stockholders have an equity stake in the company (i.e. they are owners), whereas bondholders
have a creditor stake in the company (i.e. they are lenders). Another difference is that bonds
usually have a defined term, or maturity, after which the bond is redeemed, whereas stocks may
be outstanding indefinitely. An exception is a consol bond, which is perpetuity (i.e., bond with
no maturity).
22


4.3 Corporate bond
A corporate bond is a bond issued by a corporation. It is a bond that a corporation issues to raise
money in order to expand its business. The term is usually applied to longer-term debt
instruments, generally with a maturity date falling at least a year after their issue date. (The term
"commercial paper" is sometimes used for instruments with a shorter maturity.)Sometimes, the
term "corporate bonds" is used to include all bonds except those issued by governments in their
own currencies. Strictly speaking, however, it only applies to those issued by corporations. The
bonds of local authorities and supranational organizations do not fit in either category. Corporate
bonds are often listed on major exchanges (bonds there are called "listed" bonds). Sometimes
this coupon can be zero with a high redemption value. However, despite being listed on
exchanges, the vast majority of trading volume in corporate bonds in most developed markets
takes place in decentralized, dealer-based, over-the-counter markets. Some corporate bonds have
an embedded call option that allows the issuer to redeem the debt before its maturity date. Other
bonds, known as convertible bonds, allow investors to convert the bond into equity.
Many types of debenture and bonds have been structured to suit investors with different time
needs. Though having risk as compared to bank fixed deposits, bonds and debentures do offer
higher returns. Debenture instruments require scanning the market and choosing specific
securities that will cater to investment objectives of the investor.
4.4 Government bond
It is a bond issued by a national government denominated in the countries own currency. Bonds
are debt investments whereby an investor loans a certain amount of money, for a certain amount
of time, with a certain interest rate, to a company or country. Bonds issued by national
governments in foreign currencies are normally referred to as sovereign bonds.
The most important features of a bond are: nominal, principal or face amount the amount on
which the issuer pays interest, and which, most commonly, has to be repaid at the end of the
term. Some structured bonds can have a redemption amount which is different from the face
amount and can be linked to performance of particular assets such as a stock or commodity
23

index, foreign exchange rate or a fund. This can result in an investor receiving less or more than
his original investment at maturity
4.5 Tax Saving Bonds
These are those bonds that have a special provision that allows the investors to save on tax.
Examples of such bonds are:
a) Infrastructure Bonds
b) Capital Gains Bonds
c) Rural Electrification Corporation (REC) bonds
d) National High Authority of India (NHAI)
e) National bank for Agriculture & Rural Development
f) RBI Tax Relief Bonds
Characteristics of Bond fund
Issue price
The price at which investors buy the bonds when they are first issued, which will typically be
approximately equal to the nominal amount. The net proceeds that the issuer receives are thus the
issue price, less issuance fees.
Maturity date
The date on which the issuer has to repay the nominal amount. As long as all payments have
been made, the issuer has no more obligations to the bond holders after the maturity date. The
length of time until the maturity date is often referred to as the term or tenor or maturity of a
bond. The maturity can be any length of time, although debt securities with a term of less than
one year are generally designated money market instruments rather than bonds. Most bonds have
a term of up to thirty years. Some bonds have been issued with maturities of up to one hundred
years, and some do not mature at all.


24

Coupon
The interest rate that the issuer pays to the bond holders. Usually this rate is fixed throughout the
life of the bond.
4.6 Mutual Fund
A mutual fund is a common pool of money into which investors place their contributions that are
to be invested in accordance with a particular objective. The ownership of the fund is thus joint
or mutual the fund belongs to all investors. A single investors ownership of the fund is the
same proportion as the amount of the contribution made by him or her bears to the total amount
of the fund.
Mutual funds are trust, which accept savings from investors and invest the same in diversified
financial instruments in terms of objectives set out in the trusts deed with the view to reduce the
risk and maximize the income and capital appreciation for distribution for the members. A
mutual fund is a corporation and the fund managers interest is to professionally manage the fund
provided by the investors and provide a return on them after deducting a reasonable management
fees.








25

Working of Mutual Fund Chart 7.2

Advantages of Mutual funds.
Portfolio diversification
Each investor in the fund is a part owner of all the funds assets, thus enabling him to hold a
diversified investment portfolio even with a small amount of investment that would otherwise
require big capital.
Professional Management
Even if an investor has a big amount of capital available to him, he benefits from the professional
management skills brought in by the fund in the management of the investors portfolio. The
investment management skills, along with the needed research into available investment options,
ensure a much better return than what an investor can manage on his own few investors have the
26

skill and resources of their own to succeed in todays fast moving, global and sophisticated
markets.
Diversification of Risk
When an investor invests directly, all the risk of potential loss is his own, whether he places a
deposit with a company or a bank, or he buys a share or debenture on his own or in any other
form. While investing in the pool of funds with investors, the potential losses are also shared
with other investors. The risk reduction is one of the most important benefits of a collective
investment vehicle like the mutual fund.
Reduction of transaction costs
The cost associated with transaction cost is also minimum. The investor bears all the costs of
investing such as brokerage or custody of securities. When going through a fund, he has the
benefit of economies of scale, the funds pay lesser costs because of larger volumes, a benefit
passed on to its investors.

Liquidity
Often investors hold shares or bonds they cannot directly, easily and quickly sell. When they
invest in the units of a fund, they can generally cash their investment any time, by selling their
units to the fund if open-ended, or selling them in the market if the fund is close end. Liquidity
of investment is a clearly a big benefit.
Convenience and Flexibility
Mutual fund management companies offer many investors services that a direct market investor
cannot get. Investors can easily transfer their holding from one scheme to the other; get updated
market information and so on.
Well regulated
All mutual funds are registered with SEBI and they function within the provision of strict
regulations designed to protect the interest of investors. The operations of mutual funds are
regularly monitored by SEBI.
27

Disadvantages of Mutual fund.
No Control over Costs
Investors in a mutual fund have no control of the overall cost of investing. The investors pay
investment management fees as long as he remains with the fund. Fees are payable even if the
value of his investment is declining. A mutual fund investor also pays fund distribution cost,
which he would not incur in direct investing.
No Tailor made Portfolio
Investors who invest on their own can build their own portfolios of shares and bonds and other
securities investing through fund means he delegates this decision to the fund managers. The
very-high-net-worth individuals or large corporate investors may find this to be a constraint in
achieving their objectives. However, most mutual fund managers help investors overcome this
constraint by offering families of funds, a large number of different schemes within their own
management company.
Buried Cost
Many mutual funds specialize in burying their costs and in hiring salesman who do not make
those costs clear to their clients.
Types of Mutual funds (Chart 7.3)

28

Open Ended Schemes
An open end fund is one that is available for subscription all through the year. These do not
have a fixed maturity. Investors can conveniently buy and sell units at Net asset value (NAV)
related prices.
Close Ended Schemes
A closed-end fund has a stipulated maturity period which generally ranging from 3 to 15 years.
The fund is open for subscription only during a specified period. Investors can invest in the
scheme at the time of the initial public issue and thereafter they can buy or sell the units of the
scheme on the stock exchanges where they are listed. In order to provide an exit route to the
inventors, some close-ended funds give an option of selling back the units to the Mutual fund
through periodic repurchase at NAV related prices. SEBI regulations stipulate that at least one of
the two exit routes is provided to the investor.

Interval schemes
Interval schemes are that scheme, which combines the feature of open-ended ad close-ended
schemes. The units may be traded on the stock exchange or may be open for sale or redemption
during pre-determined intervals at NAV related prices.
Equity Funds
These funds invest a maximum part of their corpus into equities holdings. The structure of the
fund may vary different for different schemes and the fund managers outlook on different
stocks. The Equity Funds are sub-classified depending upon their investment objective, as
follows:
Diversified Equity Funds
Mid-Cap Funds
Sector Specific Funds
29

Tax Savings Funds (ELSS) Equity investments are meant for a longer time horizon, thus Equity
funds rank high on the risk-return matrix
Debt Funds
The objective of debt funds is to invest in debt papers. Government authorities, private
companies, banks and financial institutions are some of the major issues of debt papers. By
investing in debt instruments, these funds ensure low risk and provide stable income to the
investors. Debt funds are further classified as:
Gilt Funds
Invest their corpus in securities issued by Government, popularly known as Government of
India debt papers. These Funds carry zero Default risk but are associated with Interest Rate risk.
These schemes are safer as they invest in papers backed by Government.
Income Funds
Invest a major portion into various debt instruments such as bonds, corporate debentures and
Government securities.
MIPs
Invests maximum of their total corpus in debt instruments while they take minimum exposure in
equities. It gets benefit of both equity and debt market.
Short Term Plans (STPs)
Meant for investment horizon for three to six months. These funds primarily invest in short term
papers like Certificate of Deposits (CDs) and Commercial Papers (CPs). Some portion of the
corpus is also invested in corporate debentures.
Liquid Funds
Also known as Money Market Schemes, These funds provides easy liquidity and preservation of
capital. These schemes invest in short-term instruments like Treasury Bills, inter-bank call
30

money market, CPs and CDs. These funds are meant for short-term cash management of
corporate houses and are meant for an investment horizon of 1day to 3 months.
Balanced Funds
As the name suggest they, are a mix of both equity and debt funds. They invest in both equities
and fixed income securities, which are in line with pre-defined investment objective of the
scheme. These schemes aim to provide investors with the best of both the worlds. Equity part
provides growth and the debt part provides stability in returns.
4.7 Equity
It is a high risk funding with a high return and cost. This is used where firms cannot secure the
funding they need through the lower cost options. (Eg. Debt) because they cannot provide any
security for a bank or where the project itself is inherently high risk (e.g. a startup business). The
higher cost of equity compensates the provider for the increased risk of losing all their money.
Equity is usually in the form of shares that mean the provider owns shares in the business and
shares the risk.
Equity can come from a number of sources:
Friends and family
Usually smaller amounts from this source
Business Angels/ Angel investors
These are wealthy individuals who often have a portfolio of investments. Angels typically invest
their own funds and fill the gap in start-up financing between friends and family who provide
funding and venture capital.
4.8 Venture Capital
A Venture capital fund is a pooled investment vehicle that primarily invests the financial capital
of third- party investors in enterprises that are too risky for the standard capital markets or bank
loans. Venture capital has a particular emphasis on entrepreneurial undertaking and less mature
business. It is a type of private equity typically provided by professional, outside investors to
31

new, growth business. Generally made as cash in exchange for shares in the invested company,
venture capital investments are usually high risk, but offer the potential for above-average
returns. A venture capital fund is a pooled investment vehicle that primarily invests in the
financial capital of third-party investors in enterprises that are too risky for the standard capital
markets or bank loans.
4.9 Private Equity
Private equity is a broad term which commonly refers to any type of non-public ownership
equity securities that are not listed on a public exchange.
Obtaining private equity is very different from raising debt or a loan from a lender, such as a
bank. Lenders have a legal right to interest on a loan and repayment of the capital, irrespective of
the success or failure of the business.
Private equity is invested in exchange for a stake in the company which is being financed and, as
shareholders the investors returns are dependent on the growth and profitability of the business.
Private equity is not secured on any assets although part of the non-equity funding package
provided by the private equity firm may seek some security. The private equity firm, therefore,
often faces the risk of failure just like the other shareholders. The private equity firm is an equity
business partner and is rewarded by the companys success. If a company is looking to start up,
expand, buy into a business private equity could help it to do this.
Private Equity Fund
A private equity fund is a collective investment scheme (fund) that invests in companies or entire
business units with the intention of obtaining a controlling interest (usually by becoming a
majority shareholder, sometimes by becoming the largest shareholder) so as to be in the position
to restructure the target companys reserve capital management, and organizational
infrastructure. Once one or more of these objectives are accomplished, the target companies are
delisted from public stock exchange help private, restructured over a period of 3-7 years, and
then again relisted through an IPO
32

The majority of investment into private equity funds comes from three sources:
Institutional investors
Funds of Funds (These are private equity funds that invest in other private equity funds in
order to provide investors with a lower risk product)
Individual with substantial net worth
4.10 National saving certificate (NSC)
National Saving Certificate (NSC) is subsidized and supported by government of India as it is a
secure investment technique with a lock in tenure of 6 years. There is no utmost limit in this
investment option while the highest amount is estimated as Rs 100. The investor is entitled for
the calculated interest if 8% which is forfeited two times in a year. National Saving certificate
falls under Section 80 C of IT act and the profit accrued by the investors stands valid for tax
dedication up to Rs 100000.
4.11 Public Provided Fund
Public Provident Fund (PPF) is also supported by the Indian government. An investment of
minimum Rs 500 and maximum RS 70000 is required to be deposited in a fiscal year. The
prospective investor can create a PPF account in a GPO or head post office or in any sub
divisions of the centralized bank.
PPF also falls under section 80C of IT act so investors could gain income tax deduction of up to
Rs 100000. The rate of interest of PPF is evaluated yearly with a lock in tenure of maximum 15
years. The basic rate of interest in PPF is 8%.
4.12 Post Office Time Deposit Scheme
This is a type of fixed deposit and is offered at all post offices. As this scheme is handled directly
by the Government of India through post office network, it can be considered a very safe and
secure method of investment. The scheme is best for those people who want to invest their lump-
sum money for a fixed period of time. At the maturity of the deposit, the depositor gets the total
amount. The interest rate on investment is high in this scheme ranging from 6.25% to 7.50%,
depending on the term of the deposit.
33

4.13 Post office Monthly Income Scheme
The post- office monthly income scheme (MIS) provides for monthly payment of interest income
to investors. It is meant for investors who want to invest a sum amount initially and earn interest
on a monthly basis for their livelihood. The MIS is not suitable for an increase in your
investment. It is meant to provide a source of regular income on a long term basis. This scheme
is therefore, more beneficial for retired persons.
4.14 Stock Market
Investing in share market yields higher profits. Influenced by unanticipated turn of market
events, stock market to some extent cannot be considered as the safest investment options.
However, to accrue higher gains, an investor must update himself on the recent stock market
news and updates.
4.15 Commodities
Commodity markets are markets where raw or primary products are exchanged. These raw
commodities are traded on regulated commodities exchanges, in which they are bought and sold
in standardized contracts. It covers physical product (food, metals, and electricity) markets but
not the ways that services, including those of governments, nor investments, nor debt, can be
seen as commodity.
4.16 Hedge Funds
Hedge funds pool money from investors and invest in securities or other types of investments
with the goal of getting positive returns. Hedge funds are not regulated as heavily as mutual
funds and generally have more leeway than mutual funds to pursue investments and strategies
that may increase the risk of investment losses. Hedge funds are limited to wealthier investors
who can afford the higher fees and risks of hedge fund investing, and institutional investors,
including some pension funds.


34

4.17 Real Estate
Real estate is a great investment option, as it gives you capital appreciation and rental income.
Its an investment option since it fights inflation. The fundamentals for investing in property
markets remain strong in India relatively low interest rates, strong capital flows, high
employment growth, abundant liquidity, attractive demographics (young population and
migration from West), increase in affordability, and a large supply of stock to keep up with
demand and focus on quality. The price you pay for a property should reflect the future
rent/income at which you let it. The growing increase in the industrial, commercial and
residential projects have boosted the real estate market in India. Some of the leading India Real
estate funds are:
HDFC property fund invest in all the stages of the real estate projects.
DHFL venture capital fund promoted by Dewan housing, has a focus on developing
properties rather than investing in real estate.
India Advantage Fund (ICICI)
Kotak Mahindra Realty Fund

4.18 Insurance
Life insurance has traditionally been looked upon pre-dominantly as an avenue that offers tax
benefits while also doubling up as a saving instrument. The purpose of life insurance is to secure
the financial future of the nominees in the absence of the person insured.

Life insurance is to protect you dependents from any financial difficulties in your absence. It
helps individuals in providing them with the twin benefits of insuring themselves while at the
same time acting as a compulsory savings instrument to take care of their future needs. Some
plans also double up as a savings instrument, they assist you in planning for such future needs
like childrens marriage, purchase of various household items, gold purchases or as seed capital
for starting a business.

Traditionally, buying life insurance has always formed an integral part of an individuals annual
tax planning exercise, while it is important for individuals to have life cover, it is equally
35

important that they buy insurance keeping both their long-term financial goals and their tax
planning in mind. The major insurable risks are as follows:

Life
Health
Income
Professional Hazards
Assets

4.19 Structured Product
A structured product is generally a pre-packaged investment strategy which is based on
derivatives, such as a single security, a basket of securities, options, indices, commodities, debt
issuances and/or foreign currencies. A feature of some structured products is a principal
guarantee function which offers protection of principal if held to maturity. Structured products
were created to meet specific needs that cannot be met from the standardized financial
instruments available in the markets. Structured products can be used as an alternative to a direct
investment, as part of the asset allocation process to reduce risk exposure of a portfolio, or to
utilize the current market trend. Structured Products are usually issued by investment banks or
affiliates thereof. They have a fixed maturity, and have two components: a note and a derivative.
The derivative component is often an option. The note provides for periodic interest payments to
the investor at a predetermined rate, and the derivative component provides for the payment at
maturity.









36

Chapter 5
DATA ANALYSIS AND INTERPRETATION

Portfolio study of investors
The case study comprises of 3 portfolios where three different investors have done investment
based on financial advisors recommendation. The pattern of portfolios varies from each
investor. The investment is done based on a thorough discussion with the investor and
recommendation is given taking investors income and expenses into consideration.



This portfolio has majority of funds invested in debt and equity. The investor is exposed to risky
as well as secured income, a basic assumption can be made that the client takes a moderate risk
and at the same time needs liquidity from its investment. This indicates that the client has
number of short term goals. A minor portion of money is invested in funds of funds as shown in
the chart these have poorly performed in the investors portfolio. Thus on the basis of overall
portfolio the client can beat inflation if equity performs well or grow money at a steady rate.





2374999.5
682818.5
2550000
457705
2363506.9
808848.8
83712.69
35184.333
Debt Equity & Debt Equity Funds of Funds
Portfolio1 - 7.4
Invested amount Present Value
37




The second portfolio shows that a client is a new investor and has lot of short term goals. The
invested amount has given good returns for the client. The investment shows a long term
investment but is exposed to huge risk as huge junk of money is parked in equity. Funds of funds
are considered safer as compared to equity thus clients about 5% of money is considered safer
for the above portfolio.











Invested Amount Present Value
Equity 400000 523171.9
Funds of Funds 25255.7 32360.4
0
100000
200000
300000
400000
500000
600000
Portfolio2 - 7.5
38



The Third portfolio has a wide range of investments made by the client. Major portion of money
is invested in Short Term Debt this indicates that client needs higher liquidity as compared to
other investments. Secondly the clients major investment is done in equity we assume its for long
term as a result client benefits from growth, income and tax benefit. The overall portfolio is not
attractive as compared to performance of investment. The portfolio is diversified and a fund of
funds has supported the overall portfolio with a profit. The client seems to have short and long
term goals and is aggressive in terms of investment.



Debt
Equity &
Debt
Equity ETF
Funds of
Funds
Short Term
Debt
Invested Amout 260000 45319.2 1708344.6 49966.5 314813.4 2462232.1
Present Value 291323.2 54435.5 89084.474 111453.5 326947.5 135621.91
0
500000
1000000
1500000
2000000
2500000
3000000
Portfolio3 - 7.6
39



Interpretation: - It is observed that mostly the investors are of age 31- 49 which mainly
fall in the earning group and those between 50- 60 are the least as people in the category are the
ones who have or about to retire from their job.


Interpretation: - It is observed that most clients of Emkay are post graduate investors
followed by graduation level. There were few respondents that just had certification or a
education level that preferred to keep as others.
26
39
5
0
0 5 10 15 20 25 30 35 40 45
30 years or younger
31-49
50-60
60 and above
30 years or younger 31-49 50-60 60 and above
Numbers 26 39 5 0
7.7 Age group of respondents
18
32
13
7
0 5 10 15 20 25 30 35
Graduation
Post Graduation
Professional
Others
Graduation Post Graduation Professional Others
Numbers 18 32 13 7
7.8 Education of Respondents
40





Interpretation: - Mostly service class people who are employed in private sector get a
fixed salary at regular interval whereas retired people with no source of income feel at risk to
invest with their saved money.



9
45
12
4
0
0 5 10 15 20 25 30 35 40 45 50
Government employee
Private employee
Self - Employee
Retired
Others
Government
employee
Private employee Self - Employee Retired Others
Numbers 9 45 12 4 0
7.9 Occupation of Respondents
0 5 10 15 20 25 30 35 40
Less than 1 lakh
1 - 2 Lakhs
2 - 3.5 Lakhs
3.5 - 5 Lakhs
More than 5 Lakhs
Less than 1 lakh 1 - 2 Lakhs 2 - 3.5 Lakhs 3.5 - 5 Lakhs More than 5 Lakhs
Numbers 0 0 29 37 4
7.10 Annual Income
41

Interpretation: - Most of the investors are the mixture of middle and higher income
group, people earning 3.5 - Lakhs per annum. Few people didnt like to share information about
their income.



Interpretation: - It was observed that Investors most annual investments were lying in
the range of 25000 50000, investors having this range preferred investing in equity, mutual
funds and bonds. Whereas there were few investors that preferred to invest huge bulk of money
in selected financial instruments.

20
42
8
0
0
0 5 10 15 20 25 30 35 40 45
Less than 25000
25000 - 50000
50001 100000
100001 200000
200001 & above
Less than 25000 25000 - 50000 50001 100000 100001 200000 200001 & above
Numbers 20 42 8 0 0
7.11 Annual Investment
42



Interpretation: - Majority of the investors preferred risk free investments these are the
investors that prefer returns rather than liquidity and risk management. The pie chart also
explains that people are gradually shifting their preference to Mutual funds as they are less threat
for losing money because of rupee averaging method. Life insurance is no longer ways for
growing money investors preferred this option as a back in case of uncertainty of any event
happening.



13%
4%
22%
10%
2%
12%
28%
5%
4%
7.12 Financial instruments preferred for
investment
Equity
Commodity
Mutual fund
Life insurance
Recurring deposit
Saving account
Fixed Deposit
Bonds
0
10
20
30
40
50
60
70
Rank 1 Rank 2 Rank 3 Rank 4
7.13 Parameters considered by investors for
making investment
Risk Covering Liquidity returns ease of operation
43

Interpretation: - It was observed that investors have returns as a primary objective behind
investment. Followed by risk covering, liquidity and then ease of operation. Investors seem to
have ease of operation least because of the well awareness of financial terms and easy to
operation systems coming in market day by day.



Interpretation: - From the above bar chart investors were seeking the objective of Growth
and income, followed by long term profit seeking. Their main goal was to have parked their
money in such instruments were the money grows more. Apart from this there were only few
investors who wanted to have short term profit.

5
29
26
10
0 5 10 15 20 25 30 35
Short Term Profit
Growth and income
Long term profit seeking
Tax benefit
Short Term Profit Growth and income
Long term profit
seeking
Tax benefit
Numbers 5 29 26 10
7.14 Respondents Investment objectives
44



Interpretation: - It was observed that investors preferred to have more liquidity when
investing in financial instruments, with the changing economic scenarios and unfavorable market
conditions, Investors were not willing to invest for a period of more than 5 years tenure in the
market.















39
24
7
0
0 5 10 15 20 25 30 35 40 45
A - At any time now -
So a high level of
liquidity is important
B- Probably in the
near future - 1 to 5
years from now
C - in 6 to 10 years
D - Probably in 11 to
20 years from now
Numbers 39 24 7 0
7.15 Investors preference to use the bulk
money
45

Chapter 6
FINDINGS

6.1 Findings
Income level of an investor is an impotent factor, which affects portfolio of the investor.

Return on investment and risk involved is the most important factor for the investor
before taking any investment decisions.

Respondents preferred more risk free instruments to invest, equity being in the favorites
investors were more comfortable with mutual funds as a long term investment.

Higher income level groups and risk taking investors are preferred to invest in equity
rather than and other investment avenues.

Emkay Global Financials mostly have HNI clients, advisors mostly plan their funds in
equity or mutual funds to earn a higher return their main objective is to seek growth and
income over a long period of time.

Emkay provides wide range of products and services but due to competitors in the market
its very tough to market these to the investors. There needs to be more promotion and
awareness among the investors to have the products and services in demand.







46

6.2 SUGGESTIONS AND RECOMMENDATIONS

It is recommended that investors decision should be based on their advisors advice.

Risk and return should be evaluated before making any investment decision.

Emkay Global Financials should update web site frequently and provide information up
to date.

A low rate of brokerage than the existing rate will encourage the existing investors to
invest more and would attract more new clients.

To prepare an effective marketing strategy a company must study its competitors as well
as its actual and potential customer.

















47

6.3LIMITATIONS OF THE STUDY

The survey is restricted to a small sample of respondents as compared to the total
clientele of Emkay Global Financial. The sample size may not adequately represent the
actual market.

The research was conducted within a short period of two months. So this neither may not
reflect the actual picture of the market.

Theres a possibility that the responses received from the respondents may not be genuine
as they would hesitate to reveal their financial status

Some of the data have been collected from the telephonic interview, so the respondents
were not properly able to go through the questionnaire.
















48

6.4 FUTURE SCOPE

The research can be used by many investment firms in order to attract more clients and advance
their financial services.
Government can use such type of study to see the knowledge level of the investors and thus it
can be of great use of generating future awareness by seeking different aspects for the investors.
The research has been conducted in a single company only, thus this research has a scope of
being conducted with reference to a group of companies.
























49

6.5CONCLUSION

The investors decisions are driven by economic indicators such as GDP, inflation rate,
unemployment rate, NNP, GNP, Monsoon, Government Policies, etc. The study shows how
different factors and instruments have different risk, returns and tax considerations while taking
investment decision and are of diverse natures. It is very difficult to come to any definite
conclusions that how a particular market instrument is doing and how they will perform in the
future, but still the study concludes to an extent that the particular instruments or product like
equity or government security has performed well in the past, and supported with strong demand
will perform well in the future.
Indian economy has grown from a position of 2 to 3% of growth rate to a position of 8.5% at
present in a very less time. The economy has done immensely well and so is the performance of
the equity market, which has given a very high return to the investors. Thus equity market is
presently very booming and expected even more in the future. The study takes a random sample
of 70 prospective and existing clients that denotes the whole population of investing community,
which is limited to the extent of accurate results. The population for the future of the investing
community is that it will give very high returns for the securities that are fundamentally strong
and not by any other means.
The study also draws an important conclusion from the study that the investors are a keen to
invest in long term and les risk products, much interested to earn the good return on their
investments. Investors are aware about the factor affecting their short term as well as long-term
investment plans and they do take advice from different experts, self analysis by investors
themselves. This intensive study will somehow help investors in deciding the correct investment
from their savings.
The study is conducted in Emkay Global Financials; most of the respondents are of Emkay
Global financials clients. The company is a leading player in the financial services market. The
analysis and interpretations very clearly shows that the investors have different views like
investment pattern by market movement, factors influencing their decision frequency of
investment, alternatives available and investment preferences truly influence their perception
towards different products and services of the company.
50

Thus to conclude the study says that the Indian investment community have shown much interest
in investing different financial products available in the market due to the spiraling growth of
Indian GDP, better performance by the companies, liberal rules and regulations by the authority
like SEBI to protect the investors interest and this process will grow much more quicker in the
future.



























51

REFERENCES
Books
Investment management and Financial Management - By: - Frank J. Fabozzi

The new Wealth Management: The Financial Advisors Guide to Managing and investing clients
assets. - By Harold Evensky


Handbook of Finance, Financial Markets and Instruments
Editor Frank J. Fabozzi Publisher John Wiley & Sons, 2008

Websites
www.emkayglobal.com
www.moneycontrol.com
www.investopedia.com
www.wikipedia.com
www.mutualfundsindia.com
www.managementparadise.com
www.scribd.com
www.indianstudychannel.com
www.nse-india.com
www.yahoofinance.com
www.hsbc.co.in
www.slideshare.com
www.personalwmn.com
www.nseindia.com
www.amfiindia.com
www.google.com
www.religare.com
www.googlebooks.com










52


APPENDIX

Respected sir/Madam,
I am Princelie Leslie Fereira, student of MMS studying in St Francis institute of Management
and Research. As a part of my curriculum, I am doing project in Emkay Financial Services. This
project is on A study on Analysis of Financial instruments with reference to Wealth
Management of Emkay Global Financial Services Ltd. So I request you to give me you
valuable feedback on questionnaire. The information will be kept confidential and used for
academic purpose only. I would be thankful for your precious time.
Name of the Person __________________________
Phone No __________________________

1) What is your age?
30 years or younger 31-49
50-60 60 and above
2) What is your Education Level?
Graduation Post Graduation
Professional Others
3) What is your Occupation?
Government employee Private employee
Self Employee Retired Others
4) What is your annual income and investments?
A) Annual Income ( in Rs )
Less than 1 lakh 1 - 2 Lakhs 2 - 3.5 Lakhs
3.5 - 5 Lakhs More than 5 Lakhs

B) Annual Investments (in Rs.)
Less than 25000 25000 - 50000
50001 100000 100001 200000 200001 & above


53



5) Which are the most likely financial instruments you prefer for investment?
Equity Commodity Mutual Fund Life Insurance
Recurring deposit saving account Fixed deposit Bonds
NSC/PF
6) What parameters as mentioned below, you consider in making the investment, rank them as per
your preference.
Risk Covering Liquidity
Returns Ease of Operation
7) What are your investment objectives?
Short term profit Growth and income
Long term profit seeking Tax benefit
8) What is the source of your investment?
Savings Inherited amount Personal borrowing
Money extracted from business Margin finance
9) When do you expect to use the bulk of money you have been accumulating in your investments?
A - At any time now - So a high level of liquidity is important
B- Probably in the near future - 1 to 5 years from now
C - in 6 to 10 years
D - Probably in 11 to 20 years from now
10) Describe in one sentence your feedback on services of Emkay financials.

__________________________________________________________


Thank you for your time and valuable inputs. Your feedback has played a big role in this activity