Chapter 5: Theoretical aspect of Study

Data Analysis Tools:

SWOT Analysis:
Strengths:

Original research Integrated technology platform One Stop shop Pan - India distribution network India Infoline.com and 5paisa.com have developed into brands

Weaknesses: Lack of a banking arm to complete the bank-broker-depository chain Insignificant presence in institutional Segment

Opportunities Changing demographics with higher disposable income and increasingly complex financial instruments will drive demand for investment advisory services Rapid penetration of Internet and computers means that technology enabled financial services will gain market share
It has recently launched Investment banking and institutional broking business.

Threats

 Economic slowdown Volatile movement in indices events like May 17, 2004 Stock markets falls will have a cascading effect on our mutual fund mobilization Increase/decrease in interest rate can affect our debt/ income fund mobilizations Future changes in personal taxation rules can impact insurance sales Increasing competition from large and particularly foreign players

Graphs showing the no. of investors according to age of the person and the

preferences of securities.

18-25 Equity 4 M utual Fund 2 Insurance 4 Fixed Deposit 0 Commodity 10 Total 20

26-35 8 8 5 4 4 29

36-55 8 5 3 11 7 34

>56 3 0 8 2 4 17

Total 23 15 20 17 25 100

Graph showing the no. of respondent according to the income of the person

and the preference of the securities.

5000-10000 11000-15000 16000-20000 21000-25000 >26000 Equity 5 6 6 5 5 M utual Fund 0 2 4 3 2 Insurance 4 3 3 6 2 Fixe d Deposit 0 4 7 4 4 Com m odity 4 5 6 5 5 To tal 13 20 26 23 18

total 27 11 18 19 25 100

Interpretation through the graph:

1) Occupation of the person:

From the above data, I can conclude that 30 % businessmen, 10% professional people, 40% servicemen, 13 % retired, & 7 % other people are interested in investment of securities. They invest more in securities and also want more return from the investment 2) How many people invest in the non-financial securities?

This chart shows that people invest less in non-financial securities compare to financial securities. Here, the graph shows that most of the people are not interested in the non- financial securities.

3) No. of respondent according to broking firm

From the above chart it can be said that India Infoline is in the top three positions. No of respondents in other firm are 30% which includes Monarch, Shah Brothers, Patel capital investment & Arcadia brothers. 4) Kind of transaction has been done by investors.

From the above graph, I can say that 54% of the people are investing in delivery basis and 46% of the people are investing in intraday basis. It means that most of the people are interested in investment rather than trading.

5) How much Interested in National Spot Exchange?

From above graph, I can say that 80% investors are Interested in National Spot Exchange and 20% are not interested.