A SUMMER PROJECT REPORT

ON

“Risk Factors in Capital Market”

CONDUCTED AT

ICICI Securities Limited, Madhuban, Udaipur (Raj.)

SUBMITTED TO

FACULTY OF MANAGEMENT STUDIES

MOHAN LAL SUKHADIA UNIVERSITY, UDAIPUR
(MBA-FSM) 2009-11

Under Guidance of: Submitted By:

Dr. Anil Kothari Mudrika Jain
Coordinator (MBA –FSM IInd PART)
MBA-FSM

PREFACE
“THE KNOWLEDGE WHICH IS NOT PRACTICALLY IMPLEMENTED
IS A BURDEN”

Knowledge is wealth but it is proved when it is utilized wisely in practical aspects. In this day
and age the above statement is of paramount importance especially for an M.B.A. student.
Equipped with the theoretical knowledge, an M.B.A. student can apply the same in practical
life to gain some valuable experience. This project study provides such an opportunity. It
familiarizes me with the corporate world as well as the challenges, which are in store for me
after getting an M.B.A. degree.

I Mudrika Jain, the student of Faculty of Management Studies, Mohan Lal Sukhadia
University, Udaipur was placed with ICICI Securities Limited for a period of 45 days. . Being
thoroughly managed organization we had a good opportunity to put over theoretical
knowledge in to practices. During the 45 days in the company we worked on the
FINANCIAL SERVICES (SECURITIES MARKET). Needles to say these 45 days
constitute one of the most interesting and rewarding periods of our MBA programme.

I gained valuable experience working on this project and I hope that this presentation will
prove to be useful to all concerned. However I believe that there is no end to knowledge and
learning process changes from time to time.

MUDRIKA JAIN

ACKNOWLEDGEMENT
I dedicate this page to convey my deepest and heart-felt appreciation for all those people who
have purposefully and inadvertently assisted me in this project. Without their thought
fullness, the satisfactory completion of this project would not have been possible.

First of all, I would express my sincere regard to Mr. MITUL JANI (Senior Sales
Manager) for giving me a chance to pursue my project in ICICI SECURITIES LTD,
Udaipur for giving me an opportunity to do this project in Udaipur Branch under his
guidance. I sincerely thank him for being my project guide and for his guidance, valuable
suggestions and time which proved to be of immense importance to me.

I would pay my sincere regards to Dr. ANIL KOTHARI (Faculty Guide) for constantly
encouraging me during the training period. I am very much thankful for his involvement at
every stage of this project and extending maximum possible help.

Also I also give my sincere thanks to Prof. KARUNESH SAXENA (Director) for his moral
support and encouragement given to me.

I express thanks to Mr. YOGESH BHARDWAJ (Assistant Unit manager) for his valuable
suggestions and for providing necessary facilities and co-operation.

I obliged to Mr. MANISH SHARMA (Associate) for his valuable suggestion, feedback for
building up survey details, schedules and implementation of the survey analysis and sustained
interest and encouragement for the project.

And last but not least I am thankful to all the Members of ICICI SECURITIES LTD. for
their support and encouragement which I have received during the course of time.

MUDRIKA JAIN

CONTENTS

Sr. no. Topic

1) Preface
2) Acknowledgement
3) Corporate profile
a) introduction and history of ICICI group
b) about ICICI group
c) about ICICI securities
d) product profile
e) SWOT analysis
4) Project profile
a) introduction of capital market
b) meaning and definition of risk
c) elements of risk
d) what causes risk
e) ways to deal with risk
f) risk and return relationship
5) Research methodology
6) Analysis and interpretation
7) Conclusion
8) Limitations
9) Questionnaire
10) Bibliography
 CORPORATE
PROFILE

PROFILE OF THE SAMPLE UNIT

ICICI SECURITIES LTD.

Profile Of ICICI Securities

 GENERAL PROFILE

• Name of the company – ICICI securities Ltd

• Registered office – Mumbai

• Date of incorporation and commencement of business – Feb 2003

• Sector – Private Enterprises

• Constitution – Constituted under the companies law (1956)

CORPORATE PROFILE

History of the organisation

A subsidiary of ICICI Bank, ICICI Securities was set up in February 1993 to provide
investment-banking services to investors in India. As on date ICICI Bank holds 99.9% of the
share capital of ICICI Securities. The dematerialized form of shareholding and the depository
mode of trade (scrip less trade) have been in operation in developed financial markets for
over 15 years. In India, the first depository commenced operation a decade back and is
relatively new. The Indian financial market is in need of both scrip-based and scrip less trade,
but the investing community, which is used scrip-based trade, is bound to take some time to
accept the latter. The scrip less trading, till now a domain of the western world, institutional
investors and GDR holders is now mandatory even for small investors. All those who hold
physical share certificates have to get them dematerialized. If they do not, they will be forced
to do so at the time of sale.

The countless numbers of conservative Indians have to digest it, whether they like it or not.
First, the institutional investors succumbed. Then the high net worth individuals, trading in
more than a certain numbers of shares, were forced to give in. now, it is the turn of the small
investors of select-companies.

With their share certificates being replaced by small slips and receipts, naturally the average
investors will have their share of fears and apprehensions. It is necessary to educate and
convince these investors about the benefit of Demat rather than forcing them to take part in
the game.

Vision and Mission:

Company’s Vision:

To make ICICI Direct the dominant online share trading by world class people and
services.

This we hope to achieve by:

 Understanding the needs of customers and offering them superior product and service.
  Leveraging technology to service customers quickly and conveniently.
 Developing and implementing superior risk management and investment strategic to
offer sustainable and stable return to our shareholder.
 Providing and enabling environment to foster growth and learning for our employees.

Company’s mission:

To judged by their sales and earnings growth rates than on the absolute value of their sales
and earnings. Look for companies that consistently grow faster than there peers.
Investors prefer companies that increase profit margins -- the percentage of sales that they
keep -- every year. This is accomplished either by lowering expenses or raising prices. Look
for companies that consistently find ways to squeeze more profits out of sales than their
peers.

The financial health of a company is dependent on a combination of profitability, short-term

liquidity and long term liquidity. Companies, which are profitable, but have poor short term
or long term liquidity measures, do not survive the troughs of the trade cycle.

PROFILE OF THE ORGANISATION

 ICICI was founded by the Government of India, World Bank and representatives of the
Indian private sector, on January 5, 1955 to encourage and assist industrial development and
investment in India. Over the years, ICICI has evolved into a Virtual Universal Bank by
becoming the most preferred financial institution for both the corporate and retail sectors.

ICICI Group has been a pioneer in Internet enabling of businesses, by starting the first
Internet enabled bank in India. ICICI Group believes in leveraging the power of the Internet
to create value for its customers by making their life easier. In December 1999, ICICI Group
created a dedicated E-Commerce Group to extend and explore the opportunities made
possible by the Internet. The Group has since been conceptualising and incubating Internet
based in-house projects. Bill Junction is one of the first offerings of this group.

Today, Bill Junction Payments Limited - a network company of ICICI Venture is India's
foremost player in the Electronic Bill Presentment and Payment (EBP) Bill Junction is at the
forefront of Internet electronic commerce, committed to the conversion of traditional modes
of bill payment through collection centre’s and drop boxes to an online and convenient
process. Bill Junction has used technology to create a superior product and has harnessed the
power of the Internet to deliver to you an easy hassle-free bill payment solution.
Bill Junction is dedicated to creating value for its customers by continuously upgrading its
product and by incorporating customer friendly features on an ongoing basis. With Bill
Junction taking care of your bills you will have more free time, fewer headaches and fewer
worries.
Financial planning and share trading have been the strong pillars of ICICI's growth. They
expect these to remain thrust areas in the future too. The financial institution sees significant
opportunities in the power sector, and in the rapid de-regulation of the Telecom sector. On
the retail side, ICICI has established a retail franchisee through a physical presence across 42
cities. Its retail thrust has been on the planks of technology enabled low cost distribution
channels like the Internet, Call centers and ATMs.
It occupies the number one position in automobile financing (over 20% of the market share),
number one in credit cards on an incremental basis. It also has a growing presence in home
finance and on-line trading.

Six parts of ICICI:-

  ICICI Bank
 ICICI Prudential
 ICICI Lombard
 ICICI Securities Ltd.
 ICICI prudential Mutual Fund
 ICICI Venture

ICICI Group
ABOUT THE ORGANISATION

Ms. Chanda D. Kochhar, chair person of ICICI

Ms. Chanda D. Kochhar is the Managing Director and Chief Executive Officer of ICICI
Bank Limited. She began her career with ICICI as a Management Trainee in 1984 and has
thereon successfully risen through the ranks by handling multidimensional assignments and
heading all the major functions in the Bank at various points in time.

Education & Certifications: Mrs. Kochhar joined Jaihind College for a Bachelors Degree in
Arts and after graduating in 1982, completed her MBA and Cost Accountancy. She did her
Masters in Management Studies (Finance) from the Jamnalal Bajaj Institute of Management
Studies, Mumbai and topped her batch and received the Wockhardt Gold Medal for
Excellence in Management Studies. In Cost Accountancy, she received the J. N. Bose Gold
Medal for highest marks in that year.

BOARD OF DIRECTORS

ICICI Securities Limited

 Ms. Chanda Kochhar,Chairperson

 Mr. Uday Chitale

 Mr. Narendra Murkumbi

 Mr. Ketan Patel

 Mr. Sandeep Bakhshi

 Mr. Pravir Vohra

 Ms. Madhabi Puri-Buch, Managing Director & CEO

  Mr. A. Murugappan, Executive Director

 Mr. Anup Bagchi, Executive Director

ICICI Securities Holding Inc.

 Mr. Anup Bagchi,Chairman

 Mr. A Murugappan

 Mr. Charanjit Attra

 Mr. Subir Saha

 Mr. Gopakumar P., President

ICICI Securities, Inc.

 Mr. Anup Bagchi, Chairman

 Mr. A Murugappan

 Mr. Charanjit Attra

 Mr. Subir Saha

 Mr.Gopakumar

MANAGEMENT TEAM

Ms Madhabi Puri-Buch, Managing Director and CEO of ICICI Securities

Limited, has been with the ICICI Group for over 15 years. Madhabi
spearheads the company's initiatives in Corporate Finance which includes
Equity Capital Markets Advisory Services, and Institutional Equities;
Ms Madhabi Retail Equities which includes ICICIdirect.com, one of the largest players
Puri-Buch in the internet brokerage space and Financial Product Distribution.
Managing
Director &
CEO
Mr. A Murugappan, Executive Director - ICICI Securities Limited. He
oversees the institutional business of ICICI Securities comprising
Investment Banking and Institutional Broking. ICICI Securities
Institutional Broking business is one of the leading domestic brokerages...
Mr. A
Murugappa
n
Executive
Director
•

Anup Bagchi is Executive Director at ICICI Securities Ltd. Mr Bagchi is

responsible for the development and business growth of the retail
broking, distribution of retail financial products, and wealth management
services. Mr Bagchi pioneered seamless online broking in India through
Mr Anup ICICIdirect.com. ICICIdirect.com is the leader in the online share trading
Bagchi space with over 2 million customers.
Executive
Director
As Chief Financial Officer & Head-SFG, Mr Attra is in charge of all
strategic financial activities, business planning, forecasting and analysis,
management systems, setting up the internal control framework, &
management of all operating funds containing working capital of the
company.(Chief Financial Officer & Head – SFG)
Mr Charanjit
ABOUT I – SEC
ICICI Securities is a strongly positioned investment bank in India and provides products and
services in Fixed Income, Equities and Corporate Finance. In the fixed income business
ICICI Securities is a leading market participant in the country. ICICI Securities fixed income
activities include interest rate trading, derivatives trading, research and issue management.
The Corporate Finance business focuses on industry consolidation. ICICI Securities has been
involved in a number of mergers, cross border acquisition, equity and bidding for a number
of reputed companies. The equity business offers research, sales and execution services to
institutional investors in the secondary market and capital market related services such as
execution of public offerings, structuring and regulatory and legal documentation services.

In order to assist/provide corporate clients and institutional investors with investment banking
services in the United States of America, ICICI Securities has set up two subsidiaries namely,
ICICI Securities Holdings Inc and ICICI Securities Inc, ICICI Securities Inc, has become the
registered broker dealer with the National Association of Securities Dealers Inc, empowering
it to engage in a variety of securities transactions in the U.S. market.
 ICICI Brokerage Services Limited, a member of the National Stock Exchange of India
Limited, is the domestic broking subsidiary of ICICI Securities. ICICI Securities Ltd is the
largest equity house in the country providing end-to-end solutions (including web-based
services) through the largest non-banking distribution channel so as to fulfill all the diverse
needs of retail and corporate customers. ICICI Securities (I-Sec) has a dominant position in
its core segments of its operations - Corporate Finance including Equity Capital Markets
Advisory Services, Institutional Equities, Retail and Financial Product Distribution.
With a full-service portfolio, a roster of blue-chip clients and performance second to none,
we have a formidable reputation within the industry. Today ICICI Securities is among the
leading Financial Institutions both on the institutional as well as retail side.

Headquartered in Mumbai, I-Sec operates out of several locations in India. ICICI Securities
Inc.,the step-down wholly owned US subsidiary of the company is a member of the Financial
Regulatory Authority (FINRA). ICICI Securities Inc. activities include Dealing in Securities
and Corporate Advisory Services in the United States. ICICI Securities Inc. is also registered
with the Monetary Authority of Singapore (MAS) and operates
a branch office in Singapore.

AWARDS AND RECOGINITION

Institutional
• ICICI Securities is awarded as the Best Investment Bank 2008 by Global Finance Magazine
• The Corporate Finance group also was awarded a runner-up Best Merchant Banker by
Outlook Money in 2007.
• ICICI Securities (I-Sec) topped the Prime Database League Tables 2007 for money raised
through IPOs/FPOs.
• The equities team was adjudged the 'Best Indian Brokerage House-2003' by Asia money.

Retail
• CMO Asia Awards for Excellence in Branding and Marketing -
Brand Leadership Award (overall)
'Campaign of the Year' for the Trade Racer Campaign
 Brand Excellence in Banking and Financial Services for the store format
Award for Brand Excellence in the Internet Business
• Frost and Sullivan Award for Customer Service Leadership
• ICICIdirect wins the prestigious Outlook Money - India's Best e-Brokerage House for
2009.
• ICICIdirect, the neighborhood financial superstore won the prestigious Franchise India
`Service Retailer of the Year 2008 award.
• ICICIdirect wins the prestigious Outlook Money - India's Best e-Brokerage House for
2008.
• ICICIdirect been winning the prestigious Outlook Money - India's Best e-Brokerage House
for 2003-2004, 2004-2005, 2006-2007, 2007-2008 and 2009 - 2010
• ICICIdirect has also won the CNBC AWAAZ Consumer Award for the Most Preferred
Brand of Financial Advisory Services.
• Best Broker - Web 18 Genius of the Web Awards 2007
• Franchisor of the year award 2009
• Retail concept of the year awards 2009.

Structure of ICICI Securities Udaipur Branch

The Udaipur branch has three vertical channels.

PRODUCT PROFILE

ICICI DIRECT.COM (ONLINE SHARE TRADING)

ICICI Direct.com is a truly online share-trading site. Which means that from the time you
punch in a buy or sell trade on your computer to the final settlement in your account,
everything happens completely online? The 3-in-1 e-invest account integrates your
brokerage, bank and one or more depository accounts to make sure that you can do the
otherwise cumbersome share trading from the comfort of your home or office, at absolutely
any time of the day or night.
The products offered are
 Insurance
 E-invest (ICICI Direct.com)
 Fixed Deposits
 Mutual Funds
 Bonds
 Demat
 Equity IPO

ICICIdirect.com allows the customers various options while trading in the following
businesses:

Products Subparts
EQUITIES  Cash
 Margin
 Margin Plus
 BTST

POSTAL SAVINGS  National Savings certificates

INSURANCE  Life insurance

 General insurance

SWOT ANALYSIS OF THE COMPANY

Strengths
1. Management philosophy and commitment to maximize shareholders returns
2. Upgraded product design and development facilities to develop new financial products and
aid diversification
3. Ongoing activities to support up gradation of operational performance and rise in market.
4. Team of talented and committed professionals available to improve company’s
performance weakness.
(i) Competition from other brokerage houses
(ii) High customer base
Weakness
Lack of professional personnel.
Opportunities
1. Wide market is there hence proper marketing and research is required to be done, in
order to increase customer.

2. New avenues & areas are to be covered

Threats, Risks & Concerns

1. Constant pressure to be competitive to meet customer expectations.

2. There is vast competition in the market and ICICI also feeling the heat of that. Now they
required to maintain their profitability.

DOCUMENTATION

Requisites for opening an account

1. Cheque :
(i) Cheque required of Rs. 500 (for investment a/c)
(ii) Rs. 975 (for DMAT a/c – if person is not salaried).
(iii)Rs. 250 (for DMAT a/c – if person is salaried along with salary proof )
2. PAN Card (mandatory)
3. 2 Passport size photo
4. Address proof: - Passport, Driving licence, Bank Statement, Telephone Bill (only
landline), Electricity bill.
5. If ICICI a/c holder then no proof is required.
6. Domicile proof can be given along with DL.
7. Ration card is not considered as address proof.

Charges (per annum)

I year - 250 salaried and 975 for non-salaried
II year - D-MAT maintenance charges - 450 + tax = 496
(+) ATM charges - 99 + tax = 109
(+) Maintain in A/C - Rs. 5000 quarterly average balance. If less
than 5000 is kept in a/c than Rs.826 is charged

PROJECT
PROFILE
 CAPITAL MARKET SCENARIO

The stock market in India dates back to the 18 th century when the East India Company was ruling
the roost in the country and was perhaps the most dominant and powerful institution and its
securities were traded. The securities trading were done in an unorganized form at Bombay and
Calcutta in early 19th century. The decade of 90’s has witnessed several changes in reformation of
capital market. Automation, transparency,. Strict surveillance, depository system, on line trading,
investor protection, new rules and regulations, etc. are some of the activities which only reflect
the growth of Indian capital market. By any reckoning Indian corporate sector has grown very
significantly in the last couple of decades whether to look at it in terms of public and private
limited companies, their share capitalization, their sales turnover or their contribution to capital
formation with this came the legislation of SEBI to act as a regulatory body to protect investors.

WHAT IS CAPITAL MARKET

A market in which individuals and institutions trade financial securities.

Organizations/institutions in the public and private sectors also often sell securities on the
capital markets in order to raise funds. It is defined as a market in which money is provided
for periods longer than a year[1], as the raising of short-term funds takes place on other
markets (e.g., the money market). The capital market includes the stock market (equity
securities) and the bond market (debt).
Capital markets may be classified as primary markets and secondary markets. In primary
markets, new stock or bond issues are sold to investors via a mechanism known as
underwriting in the secondary markets; existing securities are sold and bought among
investors or traders, usually on a securities exchange, over-the-counter or elsewhere.

Classification of capital market

Capital market can be classified into following:

➢ Industrial securities market

➢ Government securities market
➢ Long term loan market

I. INDUSTRIAL SECURITIES MARKET –

The industrial securities market refers to the market which deals in equities and debentures of
the corporate. It is further divided into primary market and secondary market.

• Primary market (new issue market):-

Deals with 'new securities', that is, securities which were not previously available and
are offered to the investing public for the first time. It is the market for raising fresh
capital in the form of shares and debentures. It provides the issuing company with
additional funds for starting a new enterprise or for either expansion or diversification
of an existing one, and thus its contribution to company financing is direct. The new
offerings by the companies are made either as an initial public offering (IPO) or rights
issue.
 Features:

✔ Primary market provide the channel for sale of new securities

✔ Primary market provide opportunity to issuers of securities
✔ Government as well as corporate to raise resources to meet their requirement
of investment and discharge some obligation

• Secondary market/ stock market (old issues market or stock

exchange):-

It is the market for buying and selling securities of the existing companies. Under this,
securities are traded after being initially offered to the public in the primary market
and/or listed on the stock exchange. The stock exchanges are the exclusive centre’s
for trading of securities. It is a sensitive barometer and reflects the trends in the
economy through fluctuations in the prices of various securities. It been defined as, "a
body of individuals, whether incorporated or not, constituted for the purpose of
assisting, regulating and controlling the business of buying, selling and dealing in
securities". Listing on stock exchanges enables the shareholders to monitor the
movement of the share prices in an effective manner. This assists those to take
prudent decisions on whether to retain their holdings or sell off or even accumulate
further. However, to list the securities on a stock exchange, the issuing company has
to go through set norms and procedures.

Features:

✔ Majority of the trading is done in the secondary market.

✔ Secondary market comprises of equity markets and the debt markets.

I. GOVERNMENT SECURITIES MARKET –

It is also known as Gilt Edged Market. The gilt-edged market refers to the market for
Government and semi-government securities, backed by the Reserve Bank of India (RBI).
Government securities are tradable debt instruments issued by the Government for meeting
its financial requirements. The term gilt-edged means 'of the best quality'. This is because the
 Government securities do not suffer from risk of default and are highly liquid (as they can be
easily sold in the market at their current price). The open market operations of the RBI are
also conducted in such securities.

It includes:

✔ Stock certificates or inscribed stock

✔ Promissory notes
✔ Bearer bonds which can be discounted

I. LONG TERM LOAN MARKET –

It includes:

✔ Term loans market

✔ Mortgages market
✔ Financial guarantees market

Advantages and Disadvantages

Advantages of Capital Market:

• Capital markets provide the lubricant between investors and those needing to raise capital.

• Capital markets create price transparency and liquidity. They provide a safe platform for a
wide range of investors —including commercial and investment banks, insurance companies,
pension funds, mutual funds, and retail investors—to hedge and speculate.

• Holding different shares or bonds allows an investor to spread investment risk.

• The secondary market gives important pricing information that permits efficient use of
limited capital.

Disadvantages of Capital Market:

• In capital markets, bond prices are influenced by economic data such as employment, income
growth/decline, consumer prices, and industrial prices. Any information that implies rising
inflation will weaken bond prices, as inflation reduces the income from a bond.

• Prices for shares in capital markets can be very volatile. Their value depends on a number of
external factors over which the investor has no control.

• Different shares can have different levels of liquidity, i.e. demand from buyers and sellers.

CAPITAL MARKET INSTRUMENTS

The capital market is characterized by a large variety of financial instruments: equity and
preference shares, fully convertible debentures (FCDs), non-convertible debentures (NCDs)
and partly convertible debentures (PCDs) currently dominate the capital market, however
new instruments are being introduced such as debentures bundled with warrants, participating
preference shares, zero-coupon bonds, secured premium notes, etc.

1) SECURED PREMIUM NOTES

SPN is a secured debenture redeemable at premium issued along with a detachable warrant,
redeemable after a notice period, say four to seven years. The warrants attached to SPN gives
the holder the right to apply and get allotted equity shares; provided the SPN is fully paid.
There is a lock-in period for SPN during which no interest will be paid for an invested
amount. The SPN holder has an option to sell back the SPN to the company at par value after
the lock in period. If the holder exercises this option, no interest/ premium will be paid on
redemption.
Ex-TISCO issued warrants for the first time in India in the year 1992 to raise 1212 crores.

2) DEEP DISCOUNT BONDS

A bond that sells at a significant discount from par value and has no coupon rate or lower
coupon rate than the prevailing rates of fixed-income securities with a similar risk profile.
They are designed to meet the long term funds requirements of the issuer and investors who
are not looking for immediate return and can be sold with a long maturity of 25-30 years at a
deep discount on the face value of debentures.
Ex-IDBI deep discount bonds for Rs 1 lac repayable after 25 years were sold at a discount
price of Rs. 2,700.

3) EQUITY SHARES WITH DETACHABLE WARRANTS

A warrant is a security issued by company entitling the holder to buy a given number of
shares of stock at a stipulated price during a specified period. These warrants are separately
registered with the stock exchanges and traded separately. Warrants are frequently attached to
bonds or preferred stock as a sweetener, allowing the issuer to pay lower interest rates or
dividends.
Ex-Essar Gujarat, Ranbaxy, Reliance issue this type of instrument.

4) FULLY CONVERTIBLE DEBENTURES WITH INTEREST

This is a debt instrument that is fully converted over a specified period into equity shares.
The conversion can be in one or several phases. When the instrument is a pure debt
instrument, interest is paid to the investor. After conversion, interest payments cease on the
portion that is converted. If project finance is raised through an FCD issue, the investor can
earn interest even when the project is under implementation. Once the project is operational,
the investor can participate in the profits through share price appreciation and dividend
payments

5) CONVERTIBLE CUMULATIVE PREFRENCE SHARES

They are fully convertible cumulative preference shares. This instrument is divided into 2
parts namely Part A & Part B. Part A is convertible into equity shares automatically
/compulsorily on date of allotment without any application by the allottee.
Part B is redeemed at par or converted into equity after a lock in period at the option of the
investor, at a price 30% lower than the average market price.

6) SWEAT EQUITY SHARES

The phrase `sweat equity' refers to equity shares given to the company's employees on
favorable terms, in recognition of their work. Sweat equity usually takes the form of giving
options to employees to buy shares of the company, so they become part owners and
participate in the profits, apart from earning salary.

7) MORTGAGE BACKED SECURITIES(MBS)

MBS is a type of asset-backed security, basically a debt obligation that represents a claim on
the cash flows from mortgage loans, most commonly on residential property.
Mortgagebacked securities represent claims and derive their ultimate values from the
principal and payments on the loans in the pool. These payments can be further broken down
into different classes of securities, depending on the riskiness of different mortgages as they
are classified under the MBS.

8) PARTICIPATORY NOTES

Also referred to as "P-Notes" Financial instruments used by investors or hedge funds that are
not registered with the Securities and Exchange Board of India to invest in Indian securities.
Indian-based brokerages buy India-based securities and then issue participatory notes to
foreign investors. Any dividends or capital gains collected from the underlying securities go
back to the investors. These are issued by FIIs to entities that want to invest in the Indian
stock market but do not want to register themselves with the SEBI.

9) FUND OF FUNDS

A "fund of funds" (FoF) is an investment strategy of holding a portfolio of other investment

funds rather than investing directly in shares, bonds or other securities. This type of investing
is often referred to as multi-manager investment. A fund of funds allows investors to achieve
a broad diversification and an appropriate asset allocation with investments in a variety of
fund categories that are all wrapped up into one fund.

10) EXCHANGE TRADED FUNDS

An exchange-traded fund (or ETF) is an investment vehicle traded on stock exchanges, much
like stocks. An ETF holds assets such as stocks or bonds and trades at approximately the
same price as the net asset value of its underlying assets over the course of the trading day.
Most ETFs track an index, such as the S&P 500 or MSCI EAFE. ETFs may be attractive as
investments because of their low costs, tax efficiency, and stock-like features, and single
security can track the performance of a growing number of different index funds (currently
the NSE Nifty)

11) GOLD ETF

Gold Exchange Traded Fund (ETF) is a financial instrument like a mutual fund whose value
depends on the price of gold. In most cases, the price of one unit of gold ETF approximately
reflects the price of 1 gram of gold. As the price of gold rises, the price of the
ETF is also expected to rise by the same amount. Gold exchange-traded funds are traded on
the major stock exchanges including Zurich, Mumbai, London, Paris and New York There
are also closed-end funds (CEF's) and exchange-traded notes (ETN's) that aim to track the
gold price.

Difference between Capital and Money Market

Sr. No. Capital market Money market

1) Funds are borrowed or invested for a Funds are borrowed or invested for a
longer period. shorter period.
2) Capital markets deal with stocks and Money markets deal with certificates
bonds. of deposits, bankers' acceptance,
repurchase agreements and commercial
paper.
3) More speculative market because Money market is less speculative.
capital market offers high maturity on
the credit instruments.
4) Higher returns are paid on the Returns are lower as compared to
securities traded in the capital market capital market because less risk is
as compare to the money market involved.
because of the high risk in capital
markets.
5) In capital market even a small Money market is a wholesale market
individual investor can deal by and the participants in money market
sale/purchase of shares, debentures or are large institutional investors,
mutual fund units. commercial banks, mutual funds, and
corporate bodies.
6) In capital market, the two common In case of money market, there is no
 segments are primary market and such sub-division in general.
secondary market. Both these
segments are interrelated.
7) It is less liquid market. Money market is more liquid.

MEANING OF RISK

A person making an investment expects to get some return from the investment in the future.
But, as future is uncertain, so is the future expected return. It is this uncertainty associated
with the returns from an investment that introduces risk into an investment.

We can distinguish between the expected return and the realised return from an investment.
The expected return is the uncertain future return that an investor expects to get from his
investment. The realised return, on the contrary, is the certain return that an investor has
actually obtained from his investment at the end of the holding period. The investor makes
the investment decision based on the expected return from the investment. The actual return
realised from the investment may not correspond to the expected return. This possibility of
variation of the actual return from the expected return is termed risk. Where realisations
correspond to expectations exactly, there would be no risk. Risk arises where there is a
possibility of variation between expectations and realisations with regard to an investment.

Thus, risk can be defined in terms of variability of returns. “Risk is the potential for
variability in returns.” An investment whose returns are fairly stable is considered to be a
low-risk investment, whereas an investment whose returns fluctuate significantly is
considered to be a high-risk investment. Equity shares whose returns are likely to fluctuate
widely are considered risky investments. Government securities whose returns are fairly
stable are considered to possess low-risk.

DEFINITION OF RISK
Risk can be defined as “Possibility of suffering losses”. T is the chance of something
happening that will have an impact upon objectives. It is measured in terms of consequences
and likelihood.
Risk can also be defined as “The chance that an investment’s actual return will be different
than expected” this includes the possibility of losing some or all of the original investments.”

ELEMENTS OF RISK

The essence of risk in an investment is the variation in its returns. This variation in returns is
caused by a number of factors. These factors which produce variations in the returns from an
investment constitute the elements of risk.

The elements of risk may be broadly classified into two groups. The first group comprises
factors that are external to a company and affect a large number of securities simultaneously.
These are mostly uncontrollable in nature. The second group includes those factors which are
internal to companies and affect only those particular companies. These are controllable to a
great extent. The risk produced by the first group of factors is known as systematic risk, and
that produced by the second group is known as unsystematic risk.

The total variability in returns of a security represents the total risk of that security.
Systematic risk and unsystematic risk are the two components of total risk. Thus,

TOTAL RISK = SYSTEMATIC RISK + UNSYSTEMATIC RISK

I. SYSTEMATIC RISK:

As the society is dynamic, changes occur in the economic, political and social systems
constantly. These changes have an influence on the performance of companies and thereby on
their stock prices. But these changes affect all companies and all securities in varying
degrees. For example, economic and political instability adversely affects all industries and
companies. When an economy moves into recession, corporate profits will shift downwards
and stock prices of most companies may decline. Thus, the impact of economic, political and
social changes is system-wide and that portion of total variability in security returns caused
by such system-wide factors is referred to as systematic risk. Systematic risk is further
subdivided into interest rate risk, market risk, and purchasing power risk.

Types of systematic risk

➢ Interest rate risk

➢ Market risk

➢ Purchasing power risk

1) Interest rate risk:

Interest rate risk is a type of systematic risk that particularly affects debt securities like bonds
and debentures. A bond or debenture normally has a fixed coupon rate of interest. The issuing
company pays interest to the bond holder at this coupon rate. A bond is normally issued with
a coupon rate which is equal to the interest rate prevailing in the market at the time of issue.
Subsequent to the issue, the market interest rate may change but the coupon rate remains
constant till the maturity of the instrument. The change in market interest rate relative to the
coupon rate of a bond causes changes in its market price.

A bond having a face value of Rs. 100 issued with a coupon rate of ten per cent when the
market interest rate is also ten per cent will have a market price of Rs. 100. If, subsequent to
the issue, the FII interest rate moves up to 12.5 per cent, no investor will buy the bond with
ten per cent coupon interest rate unless the holder of the bond reduced the price to Rs. 80.
When the price is reduced to Rs. 80, the purchaser of the bond gets interest of Rs. ten on an
investment of Rs. 80 which is equivalent to a return of 12.5 per cent which is the same as the
prevailing market interest rate.

Thus, we see that as the market interest rate moves up in relation to the coupon interest rate,
the market price of the bond declines. Similarly, the market price of the bond would move up
when there is a drop in market interest rate compared to the coupon rate. In other words, the
market price of bonds and debentures is inversely related to the market interest rates. As a
result, the market price of debt securities fluctuates in response to variations in the market
interest rates. This variation in bond prices caused due to the variations in interest rates is
known as interest rate risk.
Many companies use borrowed funds to finance their operation. When interest rates move up,
companies using borrowed funds have to make higher interest payments. This leads to lower
earnings, dividends and share prices. On the contrary, lower interest rates may push up
earnings and prices. Thus, we see that variations in interest rates may indirectly influence
stock prices. Interest rate risk is a systematic risk which affects bonds directly and shares
indirectly.

2) Market risk:

Market risk is a type of systematic risk that affects shares. Market prices of shares move up or
down consistently for some time periods. A general rise in share prices is referred to as a
bullish trend, whereas a general fall in share prices is referred to as a bearish In other words,
the share market alternates between the bullish phase and the bearish phase. The alternating
movements can be easily seen in the movement of share price indices such as the BSE
Sensitive Index, BSE National Index, and NSE Index etc.

Business cycles are considered to be a major determinant of the timing and extent of the bull
and bear phases of the market. This would suggest that the ups and downs in share markets
would follow the expansion and recession phase of the economy. This may be true in the long
run, but it does not sufficiently explain the short-term movements in the market.

The short-term volatility in the stock market is caused by sweeping changes in investor
expectations which are the result of investor reactions to certain tangible as well as intangible
events. The basis of the reaction may be a set of real tangible events, political, economic or
social, such as the fall of a government, drastic change in monetary policy, etc. The change in
investor expectations is usually initiated by the reaction to real events. But the reaction is
often aggravated by the intangible factor of emotional instability of investors. They tend to
act collectively and irrationally, leading to an overreaction.

The stock market is seen to be volatile. This volatility leads to variations in the returns of
investors in shares. The variation in returns caused by the volatility of the stock market is
referred to as the market risk.
 3) Purchasing power risk:

Another type of systematic risk is the purchasing power risk. It refers to the variation in
investor returns caused by inflation.

Inflation results in lowering of the purchasing power of money. When’ an investor purchases
a security, he foregoes the opportunity to buy some goods or services. In other words, he is
postponing his consumption. Meanwhile, if there is inflation in the economy, the prices of
goods and services would increase and thereby the investor actually experiences a decline in
the purchasing power of his investments and the return from the investment. Let us consider a
simple example. Suppose a person lends Rs. 100 today at ten per cent interest. He would get
back Rs. 110 after one year. If during the year, the prices have increased by eight per cent,
Rs. 110 received at the end of the year will have a purchasing power of only Rs. 101.20, i.e.
92 per cent of Rs. 110. Thus, inflation causes a variation in the purchasing power of the
returns from an investment. This is known as purchasing power risk and its impact is
uniformly felt on all securities in the market and as such, is a systematic risk.

The two important sources of inflation are rising costs of production and excess demand for
goods and services in relation to their supply. They are known as cost-push and demand-pull
inflation respectively. When demand is increasing but supply cannot be increased, price of
the goods increases thereby forcing out some of the excess demand and bringing the demand
and supply into equilibrium. This phenomenon is known as demand pull inflation. Cost push
inflation occurs when the cost of production increases and this increase in cost is passed on to
the consumers by the producers through higher prices of goods.

In an inflationary economy, rational investors would include an allowance for the purchasing
power risk in their estimate of the expected rate of return from an investment. In other words,
the expected rate of return would be adjusted upwards by the estimated annual rate of
inflation.
 I. UNSYSTEMATIC RISK:

The returns from a security may sometimes vary because of certain factors affecting only the
company issuing such security. Examples are raw material scarcity, labour strike, and
management inefficiency. When variability of returns occurs because of such firm—specific
factors, it is known as unsystematic risk. This risk is unique or peculiar to a company or
industry and affects it in addition to the systematic risk affecting all securities.
The unsystematic or unique risk affecting specific securities arises from two sources:

✔ The operating environment of the company, and

✔ The financing pattern adopted by the company. These two types of unsystematic risk
are referred to as business risk and financial risk respectively.

Types of unsystematic risk

➢ Business risk

➢ Financial risk

1) Business risk:

Every company operates within a particular operating environment. This operating

environment comprises both internal environment within the firm and external environment
outside the firm. The impact of these operating conditions is reflected in the operating costs
of the company. The operating costs can be segregated into fixed costs and variable costs. A
larger proportion of fixed costs is disadvantageous to a company. If the total revenue of such
a company declines due to some reason or the other, there would be a more than
proportionate decline in its operating profits because it would be unable to reduce its fixed
costs. Such a firm is said to face a larger business risk. Business risk is thus a function of the
operating conditions faced by a company and is the variability in operating income caused by
the operating conditions of the company.
2) Financial risk:
Financial risk is a function of financial leverage which is the use of debt in the capital
structure. The presence of debt in the capital structure creates fixed payments in the form of
interest which is a compulsory payment to be made whether the company makes profit or
loss. This fixed interest payment creates more variability in the earnings per share (EPS)
available to equity share holders. For example, if the rate of return or operating profit ratio is
higher than the interest rate payable on the debt, EPS would increase. On the contrary, if the
operating profit ratio is lower than the interest rate, EPS would be depressed. The increase or
decrease in EPS in response to changes in operating profit would be much wider in the case
of a levered firm (a company having debt in its capital structure) than in the case of an
unlevered firm.

This variability in EPS due to the presence of debt in the capital structure of a company is
referred to as financial risk.

What Causes the Risks?

These risks are caused by the following factors:

1) Wrong decision of what to invest in.

2) Wrong time of investments.
3) Nature of investments.
4) Creditworthiness of the issuer.
5) Maturity period or the length of the instrument.
6) Method of investments, namely, secured by collateral or not.
7) Terms of lending such as periodicity of servicing, redemption period, etc.
8) Nature of industry in which the company is operating.
9) Amount of investment.
10) National and International factors, acts of God.

Ways to deal with Risks

 1) Avoid it:
Investor should take those risks, which are bearable. Unnecessary and excessive risks
should be avoided.
2) Retain it:
Every Investment posses some inherent risks which are unavoidable; in order to earn
certain returns investor has to retain certain risks.
3) Reduce it:
Investor can reduce the risk by taking advice from a knowledgeable persons, analysts
etc before investing in any instruments.
4) Transfer it:
Insurance policies are the best way to transfer any risk.
5) Share it:
While investing an investor can approach his friends, relatives etc to invest with him
and the risk gets shared among different people.
Risk and Return Relationship

Every investor invests money to receive returns. The risk/return trade-off could easily be
called the iron stomach test. Deciding what amount of risk you can take on while allowing
you to get rest at night is an investor’s most important decision. The risk/return trade-off is
the balance, an investor must decide on between the desires for the lowest possible risk for
the highest possible returns. Remember to keep in mind that low levels of uncertainty (low
risks) are associated with low potential return and high levels of uncertainty (high risks) are
associated with high potential returns. Therefore risks and return go hand in hand.
 RLow
High
Risk
RISK/risk
risk
RETURN TRADE OFF
eHigh
Low return
return
t
u
r
n

Risk Return relationship between various Investments

Instruments

The Risk Return relationship between various Investments Instruments is as follows:

R*Risk
Insurance
Post
Equity
Bank Office
Mutual
Fixed
Debentures Schemes
Deposits
Deposits
Funds
eCertificates
t
u
r
n
s
 RESEARCH
METHODOLOGY

RESEARCH METHODOLOGY

Research problem

Risk Factors are the vital factors that are to be considered in the capital market. The interplay
of these factors on stock market requires a deep study about how these factors affect its
performance. Hence my research problem is risk factors in capital market. The study is based
on survey technique. For the purpose of the study 80 investors were picked up and their
views were solicited on different parameters.
Objectives of the research

 Main objective
Every company has a particular goal. A study without objectives cannot reach the destination.
My project work programme was also directed to some particular targets and the main
objective of the study is -

To know what kind of risks exists in stock market.

 Secondary objective

Study of ICICI Direct.com., Udaipur branch.

Scope of study

Globalization of the financial market has led to a manifold increase in investment. New
markets have been opened; new instruments have been developed; and new services have
been launched. Besides, a number of opportunities and challenges have also been thrown
open.

Research design

A research design is the basic framework which provides guidelines or the rest of research
process. It is a map or blueprint according to which the research is to be conducted. It
specifies the method of data collection as well as other features of study.

 About the study

This research is to know and study whether the investors are aware about the risks that exist
in market.

 Reason for the study

The study is being made to know the general working of the bank along with the services
provided by the bank to its customers and to check the accuracy and efficiency of the bank.

 Place of study-
The study is carried out with the customers of ICICI securities at Udaipur city.

 Type of research
It is a type of DESCRIPTIVE RESEARCH.

 Method of research
The research is conducted by doing surveys with help of questionnaires and direct interview.

 Type of data used

Both primary and secondary data is used for conducting the study.

 Place of data collection

The data is collected by taking interview of the daily customers of ICICI securities along with
the employees of the bank.

 Techniques of data collection

Data is collected through questionnaires and direct interview of customers and employees.

Research instrument
The basic research instrument used for my study is an interview schedule consisting 12
questions designed and framed in a set format.

Sampling plan

 Sampling method
Customers are chosen as respondents on the basis of simple random sampling in which each
respondent have equal chance of selection.

 Sample size
Sample size is 80.

 Sampling unit
Sampling unit is customers of “ICICI securities ltd”

Organisation of field work

Initial field work has done for pre testing tools for data collection. The data is collected
through the direct interaction with the ICICI’s customers through questionnaires answered by
them. Fifty customers of ICICI were randomly chosen for the purpose of the study in
Udaipur.

Tool for analysis & interpretation

To analyse and interpret the data statistical tools like tables, graphs & pie charts are used.
What all data was collected from customers is used to obtain material information. The
statistical techniques of classifying and tabulating of data was used to interpret useful data.
All questions are analysed and some of the conclusions are drawn out and on the basis of
lacunae in the system suggestions are made.

Report formation
It is the last stage of the project formulation. The collected data which was analysed and
interpreted is now systematically arranged and henceforth printed in the form of a report in
clear and understandable format.
ANALYSIS
 AND
INTERPRETATION

ANALYSIS AND INTERPRETATION

Q.1) What percent of your total income is invested in different investment avenues?

Table – 1

Scale Response Percentage

Upto 10% 6 7.5
10 – 20% 67 83.75
20 – 30% 6 7.5
Above 30% 1 1.25
Total 80 100
Interpretation:

From the above chart it is observed that 7.5% investors from the selected sample invest upto
10% of their earnings, 83.75% people invest 10 – 20% of their earnings, 7.5% invest 20 –
30% of their earnings, and rest 1.25% invest above 30% of their earnings in different
investment avenues.
Q. 2) Among the following avenues which would you prefer to invest in?

Table – 2

Avenues Response Percentage

Equity 16 20
Fixed income 45 56.25
Commodities 6 7.5
Real estate 10 12.5
Others 3 3.75
Total 80 100

Interpretation:

As per the survey conducted 20% investors choose equity, 56.25% choose fixed income,
7.5% choose commodities, 12.5% choose real estate, and rest 3.75% choose others
investment avenues as their first priority. Thus it can be observed that large number of
investors still prefer fixed income securities as an investment option. They do not want to
take any risk. After fixed income securities investors give priority to equity and real estate.
Thus it can be concluded that still large number of investors are conservative in nature.
Q. 3) what percent of your total investment is in equity?

Table – 3

Scale Response Percentage

Upto 10% 30 37.5
10 – 20% 40 50
20 – 30% 10 12.5
Above 30% 0 0
Total 80 100
Interpretation:

From the above chart it is observed that 37.5% investors invest upto 10% of their total
investments only in equity, 50% people invest 10 – 20%, and 12.5% invest 20 – 30% in
equity respectively. It is also observed that people do not invest or very few invest above
30% of their total investments in equity. It can be concluded that out of their total
investments people invest less portion in equity because returns in equity are not fixed.
Probably they invest major portion of their total investments in some other fixed or less risky
avenues.
Q. 4) What kind of returns have you generated on equity?

Table – 4

Scale Response Percentage

Upto 10% 30 37.5
10 – 20% 45 56.25
20 – 30% 5 6.25
Above 30% 0 0
Total 80 100

Interpretation:

According to the survey conducted 37.5% generated upto 10%, 56.25% generated 10 – 20%,
6.25% generated 20 – 30% returns in equity. It is also observed that none has generated
returns above 30%. This depicts that returns in equity are average.

Q.5) Are you satisfied with the returns in your equity investments?

Table – 5
 Attributes Response Percentage
Yes 26 32.5
No 54 67.5
Total 80 100

Interpretation:

From the above chart it can be observed that 32.5% of the surveyed sample is satisfied with
the returns which they receive from equity, while 67.5% of the surveyed sample was not
satisfied with the returns from equity.

Q. 6) Do you consult financial advisors of ICICI before you make your investment?

Table – 6

Attributes Response Percentage

Yes 46 57.5
No 34 42.5
Total 80 100

Interpretation:

From the above chart it can be observed that 57.5% of the surveyed sample consults financial
advisors of ICICI before making investment decision, while 42.5% of the surveyed sample
either take investment decision on their own or consult other brokerage houses.
Q. 7) Are you satisfied with the services of icicidirect.com?

Table – 7

Attributes Response Percentage

Yes 50 62.5
No 30 37.5
Total 80 100

Interpretation:

According to survey 62.5% of customers are satisfied with the services of ICICI Direct .com
and 37.5% are not satisfied with its services. Hence it is observed that some investors are not
satisfied with the services of ICICI direct.com probably due to their high charges.

Q. 8) If no then what do you suggest to improve their services?

Table – 8

Suggestions Response Percentage

Decrease brokerage 17 56.67
Improve technical support 5 16.67
Easy access to financial advisors 7 23.33
Others 1 3.33
Total 30 100
Interpretation:

According to survey conducted 56.67% suggested to decrease brokerage, 16.67% suggested

to improve technical support, 23.33% suggested to provide easy access to financial advisors,
and rest 3.33% suggested other measures. Hence, it is observed that the brokerage charges of
ICICI are bit high. So if it reduces its charges to some extent then its customers will be more
satisfied.
Q. 9) By what means do you select stocks for investment?

Table – 9

Means Response Percentage

News channels 7 8.75
Financial advisors 40 50
Friends and relatives 5 6.25
Others 28 35
Total 80 100

Interpretation:

According to the survey conducted 8.75% people consult news channels, 50% people consult
financial advisors, 6.25% consult friends and relatives, and rest 35% consult other means
while selecting stocks for investments.

Q. 10) What are the sectors that you invest in?

Table – 10

Sectors Responses Percentage

IT 8 10
Metals 8 10
 Automobiles 13 16.25
Banking 30 37.5
Others 21 26.25
Total 80 100

Interpretation:

According to the survey conducted 10% investors invest in IT, 10% invest in metals, 16.25%
invest in automobiles, 37.5% invest in banking and 26.25% invest in other sectors. Hence it
can be observed that investors prefer banking sector most because in current scenario the
returns of banking sector are high.
Q. 11) Your purpose behind making investment?

Table – 11

Purpose Response Percentage

Safety 7 8.75
Liquidity 6 7.5
Tax planning 21 26.25
Returns 46 57.5
Total 80 100

Interpretation:

According to the survey conducted 8.75% investor invest for safety, 7.5% for liquidity,
26.25% for tax planning, and rest 57.5% for returns. Thus it can be concluded that the main
aim of large group of investors behind investing is to earn returns. Then average number of
investor invests for getting tax exemption. Then the rest segment of investors invests for
safety and liquidity.

Q. 12) Do you follow capital market regularly?

Table – 12
 Attributes Response Percentage
Yes 58 72.5
No 22 27.5
Total 80 100

Interpretation:

According to the survey conducted 72.5% of the investors follow capital market regularly
while 27.5% of the investors do not follow capital markets regularly.

Q. 13) Has the current trend of index on stock exchange added to your confidence in equity
as an investment option?

Table – 13

Attributes Response Percentage

Yes 60 75
No 20 25
Total 80 100

Interpretation:

According to the survey conducted the current trend of index in stock exchange has boost the
morale of investors. 75% of the investors are satisfied with the current trend of stock
exchange while 25% investors are not affected with the current trend of stock exchange.
 CONCLUSION

Working with ICICI securities was really a great experience. From the study conducted
following conclusions can be drawn:

1) Investors consider that capital market is not predictable and that is the biggest risk. It
is a fluctuating market hence it cannot be trusted.

2) Investors invest large portion of their total amount to be invested in fixed income
avenues and less portion in equity because the returns in equity market are not sure
and it is a risky investment.

3) Also large numbers of investors choose fixed income avenues as their first priority to
invest in because they are safer investment avenues as compared to other investment
avenues. They contain less or no risk.

4) A large number of investors generally in equity market in order to get capital

appreciation.

5) The brokerage charges of ICICI are a bit high so if it reduces its brokerage charges to
some extent then it will be able to retain more number of customers.
 LIMITATIONS

➢ Since sample size is only 80, which is not a true representative of the population as a
whole.

➢ Since segment wise investors is not available in ICICI Securities Ltd. Overall concept
is taken for the study.

➢ Information is partly based on secondary data and hence the authentic of the study can
be visualized and is measurable.

➢ Level of accuracy of the results of research is restricted to the accuracy level with
which the customers have given their answers and the accuracy level of the answers
cannot be predicted.
QUESTIONAIRE

QUESTIONAIRE
PERSONAL INFORMATION:
NAME : _________________________________________________________

ADDRESS : _________________________________________________________

_________________________________________________________

CONTACT NO.: _________________________________________________________

AGE : 20 – 30 30 – 40
40 – 50 50 – 60

OCCUPATION : PROFESSIONAL BUSINESSMEN

GOVT. SERVICE PRIVATE SERVICE

ANNUAL INCOME: UPTO 1, 50,000 1, 50,000 - 2, 50,000 AA

2, 50,000 – 3, 50,000 ABOVE 3, 50,000

ANNUAL : UPTO 50,000 50,000 – 1, 00,000

INVESTMENT
1, 00,000 – 1, 50,000 ABOVE 1, 50,000 __

_________________________________________________________________________

Q 1) What percent of your total income is invested in different investment avenues?

a) Upto 10% b) 10 – 20%

c) 20 – 30% d) Above 30%

Q 2) Among the following avenues which would you prefer to invest in ?

a) Equity b) Fixed income

c) Commodities d) Real estate

e) Others
Q 3) What percent of your total investment is in equity?

a) Upto 10% b) 10 – 20%

c) 20 – 30% d) Above 30%

Q 4) What kind of returns have you generated on equity?

a) Upto 10% b) 10 – 20%

c) 20 – 30% d) Above 30%

Q 5) Are you satisfied with the returns in your equity investments?

a) Yes b) No

Q 6) What are the risk involved in equity investments?

Ans) ______________________________________________________________________

____________________________________________________________________

____________________________________________________________________

Q 7) Do you consult the financial advisors of ICICI before you make your investment?

a) Yes b) No

Q 8) Are you satisfied with the services of icicidirect.com?

a) Yes b) No

Q 9) If no then what do you suggest to improve their services?

a) Decrease the brokerage

b) Improve technical support

c) Easy access to financial advisors

d) Others

Q 10) By what means do you select stocks for investment?

a) News channels b) Financial advisors

c) Friends and relatives d) Others

Q11) What are the sectors that you invest in?

a) IT b) Metals
c) Automobiles d) Banking

e) others

Q 12) Your purpose behind making investment?

a) Safety b) Liquidity

c) Tax planning d) Returns

Q 13) Do you follow capital market regularly?

a) Yes b) No

Q 14) What do you suggest can be done to minimise risk in equity investment?

Ans)
_______________________________________________________________________
______________________________________________________________________
_
______________________________________________________________________
_

Q 15) Has the current trend of index on stock exchange added to your confidence in equity as an
investment option?

a) Yes b) No

BIBLIOGRAPHY

Books and journals:-

ICICIdirect.com broachers and leaflets

Periodical published by ICICI Securities Ltd.

Journals published by ICICI Securities Ltd.

Websites:-

www.investopedia.com

www.moneycontrol.com

www.icicidirect.com

www.cdslindia.com/FAQ/demat.htm

www.nsdl.co.in/services/demat.php

www.sebi.gov.in/faq/faqdemat.html