INVESTMENT OPPORTUNITIES AVAILABLE IN ICICI SECURITIES

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This is an original project undertaken by me at ICICI Securities Limited, Chennai with a project duration of 2 months. This project work is bilaterally sound as the main aim was to market a finance product.

Transcript of INVESTMENT OPPORTUNITIES AVAILABLE IN ICICI SECURITIES

  • INVESTMENT OPPORTUNITIES AVAILABLE IN ICICI SECURITIES Submitted in partial fulfillment of the requirements for the award of Master of Business Administration by RAM.G (Reg. No. 3241319) DEPARTMENT OF MANAGEMENT STUDIES FACULTY OF BUSINESS ADMINISTRATION SATHYABAMA UNIVERSITY JEPPIAAR NAGAR, RAJIV GANDHI SALAI, CHENNAI 600119. TAMILNADU. APRIL 2014
  • SATHYABAMA UNIVERSITY (Established under Section 3 of UGC Act, 1956) Jeppiaar Nagar, Rajiv Gandhi Salai, Chennai - 600 119 www.sathyabamauniversity.ac.in DEPARTMENT OF MANAGEMENT STUDIES BONAFIDE CERTIFICATE This is to certify that this Project Report is the bonafide work of Ram.G (Reg. No. 3241319) who carried out the project entitled INVESTMENT OPPORTUNITIES AVAILABLE IN ICICI SECURITIES under our supervision from December 2013 to February 2014. Internal Guide External Guide Mrs.S.JOYCE, MBA, Ph.D Mr.S.SUKUMAR Head of the Department Dr. S. MUTHUMANI Submitted for Viva voce Examination held on_____________________ Internal Examiner External Examiner Mrs.S.JOYCE, MBA, Ph.D
  • DECLARATION I RAM.G (Reg.No. 3241319) hereby declare that the Project Report entitled INVESTMENT OPPORTUNITIES AVAILABLE IN ICICI SECURITIES done by me under the guidance of Mrs.S.JOYCE, MBA, Ph.D (Internal) and Mr.S.SUKUMAR (External) at ICICI SECURITIES Ltd., Chennai is submitted in partial fulfillment of the requirements for the award of Master degree in Business Administration. SIGNATURE OF THE CANDIDATE DATE: PLACE:
  • ACKNOWLEDGEMENT My sincere thanks to our Honorable Founder and Chairman Col. Dr. JEPPIAAR., M.A., B.L., Ph.D, Chancellor, Sathyabama University, Tamil Nadu, Chennai, India for his sincere endeavour in educating us in this premier institution. I would like to express my deep gratitude and heartfelt thanks to our beloved Directors Dr. Marie Johnson B.E., M.B.A.. M.Phil., Ph.D., and Dr. Mariazeena Johnson B.E., M.B.A., M.Phil., Ph.D., for motivating me to complete this project work. I would like to place my graceful thanks to Dr. B. Sheela Rani, M.S. (By Research), Ph.D., Vice Chancellor for the assistance and encouragement offered throughout my project work period. I express my heartfelt thanks to Dr. S. S. Rau, M.B.A., Ph.D., Registrar and sincere thanks to Dr. K.V. Narayanan. M.E., Ph.D., Controller of Examinations, Sathyabama University for their valuable support offered to conclude my project. I wish to express my deep sense of gratitude to Dr. S. Muthumani Ph.D., Head of the Department his valuable suggestions and encouragement offered throughout my project work. I wish to express my sincere thanks to my Internal Project Guide Mrs.S.Joyce, MBA, Ph.D and External Project Guide Mr.S.Sukumar, Executive Sales Manager, ICICI Securities, for their constant support at all the stages of the project work. I would also like to thank all the Faculty Members, Department of Management Studies for their help rendered to complete my project work in time. RAM.G
  • ABSTRACT The research work is undertaken on the Study of Investment opportunities with special reference to ICICI Securities Ltd. The main objective of the research is to identify the investment pattern of investors in ICICI Securities, particularly in Nanganallur area. The secondary objective is to study the investment decisions of investors and to study the difference between various investment options offered by ICICI Securities. The research study conducted is descriptive in nature. Both primary and secondary data are collected to meet the requirements. For collecting data a structured questionnaire method is used as an instrument. The questionnaire consists of multiple choices, open ended and close ended questions. The sampling procedure followed in this study is convenient sampling, which is a non- probability sampling and the sample size is 150. Percentage analysis, Two-way ANOVA and Chi-Square Test were used for the research purpose. The study reveals that many investors alter their investment pattern when there are market fluctuations. The study found that investment objective of most of the investors is wealth preservation and that most of the respondents invest daily. The study indicated that investment in e-gold equity scheme is considered less risky. Investments in mutual funds and F&O are considered as high risk. The study reveals that many investors invest in the equity market with the hope of growth of their investment in the future. The study suggests that awareness level should be created about different investment alternatives so that the investor may diversify his portfolio to reduce his risk.
  • CHAPTER 1 INTRODUCTION
  • INTRODUCTION Investment is an art provided it is well learnt. Learning to live with the anxiety of the unknown is part of investing. Investing is not about gambling or speculation, it is about taking reasonable risks to get steady rewards. Investment is as simple as jumping into opportunities rather than conclusions. One can invest in capital market as it is beneficial to him/her in three ways viz, Capital appreciation, Dividend and Bonus. Out of the Indian population of 1.21 billion people (as on Dec 2013), only 2% are into the capital market. The study is oriented with analyzing the investment opportunities available in ICICI Securities. As such, the study also includes analysis of the investment pattern of investors according to their portfolio and decisions taken by them when making an investment. An investment refers to the commitment of funds at present, in anticipation of some positive rate of return in future. Today the spectrum of investment is indeed wide. An investment is confronted with array of investment avenues. Among all investment, investment in equity is in best high proportion. This is because the history of stock market is booming and bursts overnight millionaires, an instant pauper. Indian economy is doing indeed well in recent years. The study has been undertaken to analyze the investment pattern of investors in ICICI Securities residing in Nanganallur. The main reasons behind the study are the factors investment decision, time horizon, frequency of investment and the risk taking ability of the investors. The percentage of Indian investors investing in the Indian equity market is very less as compared to foreign investors.
  • A financial market is a mechanism that allows people to easily buy and sell (trade) financial securities (such as stocks and bonds), commodities (such as precious metals or agricultural goods), and other fungible items of value at low transaction costs and at prices that reflect the efficient market hypothesis. Financial markets have evolved significantly over several hundred years and are undergoing constant innovation to improve liquidity. The Indian financial market has also grown substantially. The Indian stock markets are now amongst the best in the world in terms of modernizations and the technology. India was among the few countries, which was not badly affected by the contagion effects of the Asian crisis of 1997. Policy makers attribute this to the slow and cautious pace of capital account liberalization. Todaywith the feel good factor about India in the global arena rising, increased confidence of the investors in the Indian market, Sensex looking more attractive than ever before, foreign exchange reserves at an all-time high of more than $140 billion is the most vulnerable period for the regulators of the Indian financial sector, particularly SEBI and RBI. The financial markets can be divided into different subtypes: 1. Capital market which consists of: Stock markets, which provide financing through the issuance of shares or common stock, and enable the subsequent trading thereof. 2. Bond market, which provide financing through the issuance of Bonds, and enable the subsequent trading thereof. 3. Commodity markets, which facilitate the trading of commodities. 4. Money market, which provide short term debt financing and investment.
  • Money market has the following investment alternatives: 1. Derivatives market, which provide instruments for the management of financial risk. 2. Futures market, which provide standardized forward contracts for trading products at some future date. 3. Insurance market, which facilitates the redistribution of various risks. 4. Foreign exchange market, which facilitates the trading of foreign exchange. The capital markets consist of primary markets and secondary markets. Newly formed (issued) securities are bought or sold in primary markets. Secondary markets allow investors to sell securities that they hold or buy existing securities. ICICI Securities Limited amongst the leading Brokerage Houses and the value based financial services which make it preferred service provider. As Indias fastest growing financial services conglomerate, with deep moorings in the Indian economy for over five decades, ICICI Group of companies have endeavored to contribute to address the challenges posed to the community in multiple ways. The ICICI group has following companies which include: ICICI Bank, ICICI Prudential Life Insurance Company, ICICI Securities Limited, ICICI Securities Primary Dealership Limited, ICICI Lombard General Insurance Company, ICICI Prudential Asset Management Company, and ICICI Venture. It provides prime brokerage services in the area of Equity, Commodities, Derivatives Depository services, IPO Underwritings, Mutual Fund Distribution, insurance pr