KARVY- STOCKBROKING LIMITED

SME SEGMENT

Internship Report

Submitted By: Aakanksha RathiSSN: 888940845

In partial fulfillment of the Master’s Program in Business Administration, Ohio University, Athens,

USA

OHIO University Christ College Academy for Management Education

Christ College CampusHosur Road, Bangalore-29

April 2007

1

ACKNOWLEDGEMENT

I would like to convey my heartiest gratitude to several people, for their

support and guidance which helped me complete my Summer Internship.

First and foremost I would like to thank KARVY STOCK BROKING LIMITED,

Bangalore for giving me an opportunity to do my internship in their

esteemed organization. My special appreciation extends to the Segment

Head Mr. Som Shekhar for his constant encouragement throughout this

period. I also extend my gratitude to my Guide at KARVY, Wealth Manager -

Miss. Sangeetha K, who instructed us with the work procedures and dealt

with us with patience at all times.

This internship would not be complete without the support of our Director Mr.

Shivprakash. I would also like to thank our Internship Co-ordinators, Prof.

Amalendu Jyotishi and Prof. Girish for their guidance and unflinching

support throughout the phases of my Internship. I also thank Prof.

Venkatesh Bhagwat for his insightful knowledge, patience and

encouragement which gave me the strength and power to perform my best.

My special thanks to my co-students and dear friends Ms. Shikha Nagrath,

Mr. Sumit Ambastha, Mr. Gaurav Singh and Mr. Mitesh Sonthalia who

being a part of the same internship, supported me throughout my Internship

and with whose help I could complete my work efficiently and effectively.

Their consistent help kept me motivated and going.

Last but not the least, my endless appreciation goes to my family who has

stood by my side and given me moral support whenever I was low and

boosted my will power.

Thank You!

2

CONTENTS PAGE

NO.

1) Executive Summary............................................................................4

2) Introduction........................................................................................5

3) Background.........................................................................................6

i) Karvy’s Mission.........................................................................6

ii) Karvy Milestones......................................................................7

iii) KARVY Credo............................................................................8

iv) Quality Policy............................................................................9

4) Achievements.....................................................................................10

5) KARVY Wings......................................................................................11

i) KARVY Stock Broking Limited...................................................14

6) Organization Structure........................................................................15

i) Structure of SME Segment........................................................16

ii) Process.....................................................................................17

7) Product & Services..............................................................................19

i) Products....................................................................................19

(a) Mutual Funds..................................................................19

(b) Insurance........................................................................31

(c) Equities..........................................................................35

(d) Bonds.............................................................................38

(e) Derivatives.....................................................................41

ii) Services....................................................................................43

(a) Depository Participants..................................................45

(b) Distribution of Financial Products...................................46

(c) Advisory Services...........................................................47

.......................................................................................

(d) Private client Group OR CPMS........................................48

8) Marketing Plan....................................................................................50

9) Competitors of KARVY.........................................................................52

3

10) Learnings ......................................................................................54

11) Bibliography...................................................................................58

EXECUTIVE SUMMARY

This internship report consists of the overall experience of working as a part

of SME Segment at KARVY STOCKBROKING LIMITED. This experience helped

me understand the basic functioning of the particular SME segment where I

was inducted.

My Internship consisted of the On Job Training as A Relationship Manager.

The best learning experience was that I started from the very basics of

getting to that position and not from the position itself. This helped me get

useful insight and understanding of various financial products, the market

details about them and the benefits provided by them to the customers.

Emphasis was given in analysis of the investor behavior of the clients.

Another interesting fact was that all these products were suggested to clients

not just based on their market performance and returns, but on the client’s

financial condition as well as their risk taking capacity.

Training sessions were held to give me insights about the various products

that KARVY STOCKBROKING deals in like: Mutual Funds, Insurance and Bonds.

Presentations on the same after self study and analysis were a part of this

internship session.

I provided financial advice and suggestions to the investors for mutual funds

which may prove prudent to them. For other products I studied the client’s

investing behavior and assisted the wealth manager, who decided the

investment options and designed the portfolios.

4

INTRODUCTION

KARVY is a premier integrated financial services provider and ranked among

the top five in the country in all its business segments. It services over 16

million individual investors in various capacities and provides investor

services to over 300 corporates, comprising who is who of Corporate India.

It is a member of all three:-

National Stock Exchange (NSE)

Bombay Stock Exchange (BSE)

Hyderabad Stock Exchange (HSE)

Karvy utilized its experience and superlative expertise to capitalize on its

strengths and better its service, innovate and provide new ones. It diversified

in the process and thus evolved as India’s premier integrated financial

service enterprise.

Karvy has been a customer centric company since its inception. It offers a

single platform servicing multiple financial instruments in its bid to offer

complete financial solutions to the varying needs of both corporate and retail

investors, where an extensive range of services are provided with great

volume-management capability.

KARVY covers the entire spectrum of financial services such as Stock broking,

Depository Participants, Distribution of financial products - mutual funds,

bonds, fixed deposit, equities, Insurance Broking, Commodities Broking,

Personal Finance Advisory Services, Merchant Banking & Corporate Finance,

placement of equity, IPOs, among others. Karvy has a professional

management team and ranks among the best in technology, operations and

research of various industrial segments.

(Karvy.com)

5

BACKGROUND

The flagship company, Karvy Consultants Limited was found with the vision

and enterprise of a group of practicing Chartered Accountants on a modest

scale in 1981 in Hyderabad, where it now has 13 branches. It initiated with

just one activity and later carved roads into fields of registry and share

accounting as well. From then there was no stopping at all.

A decade of commitment, professional integrity and vision helped Karvy

achieve a leadership position in its field. It is known to handle the largest

number of issues ever in the history of the Indian stock market in a particular

year. Thereafter, Karvy made inroads into a host of capital market services,

corporate and retail which proved to be a sound business synergy.

Today Karvy has access to millions of Indian shareholders, besides

companies, banks, financial institutions and regulatory agencies. Over the

past one and half decades, Karvy has involved as a veritable link between

industry, finance and people. In January 1998, Karvy became the first

Depository Participant in Andhra Pradesh.

An ISO 9002 company, Karvy’s commitment to quality and retail reach has

made it an integrated financial services company. A SEBI category 1

registrar, so far Karvy has handled over 675 issues as Registrars to public

issues, processed over 52 million applications and is servicing over 16 million

investors from various locations spread over 205 cities.

Karvy’s Mission:

“ Our mission is to be a leading and preferred service provider to our

customers, and we aim to achieve this leadership position by

building an innovative, enterprising, and technology driven

6

organization which will set the highest standards of service and

business ethics ”.

(Karvy.com)

KARVY MILESTONES

Karvy has traveled a success route over the past 20 years and positioned

itself as an emerging financial service giant in which embeds the confidence

and support of enviable patrons across the financial world. Patrons are also of

diversified fields which includes over 16 million individual investors in various

capacities and 300 corporates comprising the best out of the whole lot .Years

of experience of holistic financial services and expertise in this industry has

helped it gain the status it enjoys and cherishes today.

7

(Karvy.com)

KARVY CREDO

Following are the system of principles or beliefs followed by Karvy

Group.

“Our Clients, Our Focus”

“Clients are the reason for our being”

Personalized service, professional care; pro-activeness are the values that

helps KARVY nurture enduring relationships with their clients.

Teamwork

”None of us is more important than all of us”

8

Each team member is the face of Karvy. Together they offer diverse services

with speed, accuracy and quality to deliver only one product: excellence.

Transparency, co-operation, invaluable individual contribution for a collective

goal, and respect for individual uniqueness within a corporate whole, is what

KARVY aims at.

Responsible Citizenship

“A social balance sheet is as rewarding as a business one.”

As a responsible corporate citizen, KARVY believes that its duty is to foster a

better environment in the society where they live and work. To abide by its

norms, and to behave in a responsible manner towards the environment, are

some of its growing initiatives towards realizing this.

Integrity

”Everything else is secondary”

Professional and personal ethics are Karvy’s bedrocks. They take pride in

building an environment that encourages honesty and opportunity to learn

from failures than camouflage them. They insist on consistency between

work and actions.

(Karvy.com)

QUALITY POLICY:

To achieve and retain leadership, Karvy aims for complete customer

satisfaction, by combining its human and technological resources, to provide

superior quality financial services. In the process, Karvy strives to

exceed Customer's expectations. 

As per the Quality Policy, Karvy will: 

9

Build in-house processes that will ensure transparent and harmonious

relationships with its clients and investors to provide high quality of

services.

Establish a partner relationship with its investor service agents and

vendors that will help it in keeping up to its commitments to the

customers.

Provide high quality of work life for all its employees and equip them

with adequate knowledge & skills so as to respond to customer's

needs.

Continue to uphold the values of honesty & integrity and strive to

establish unparalleled standards in business ethics.

Use state-of-the art information technology in developing new and

innovative financial products and services to meet the changing needs

of investors and clients.

Strive to be a reliable source of value-added financial products,

services and constantly guide the individuals and institutions in making

a judicious choice of same.

Strive to keep all stake-holders (shareholders, clients, investors,

employees, suppliers and regulatory authorities) proud and satisfied. 

(Karvy.com)

ACHIEVEMENTS

Among the top 5 stock brokers in India (4% of NSE

volumes)

10

India's No. 1 Registrar & Securities Transfer Agents

Among the top 3 Depository Participants

Largest Network of Branches & Business Associates

Among top 10 Investment bankers

Largest Distributor of Financial Products

Adjudged as one of the top 50 IT uses in India by MIS Asia

Full Fledged IT driven operations

(Karvy.com)

KARVY WINGS

As discussed earlier, KARVY offers a single platform servicing multiple

financial instruments in its bid to offer complete financial solutions to the

varying needs of both corporate and retail investors. The range of products

and services are provided by the following wings.

11

This is the flagship company of Karvy Group and it controls the organizational

affairs, channels of progress, work affairs and pioneering business policies.

This was the first business the KARVY group ventured into, but now they have

transferred it into a joint venture with computer share limited of Australia, the

world’s largest registrar. This company services around 6 lakh customer

accounts in a spread of 250 cities/towns in India.

This wing of Karvy is registered with SEBI as a category 1 merchant banker

and is also recognized as a leading merchant banker of the country. It has

built its reputation by capitalizing the opportunities as and when it comes, be

it in corporate consolidations, mergers and acquisitions or corporate

restructuring. Involvement in raising resources for corporate or government

undertaking successfully over the past two decades has given it a

tremendous confidence boost.

This wing of Karvy has traversed wide spaces to tie up with the world’s

largest transfer agent, the leading Australian company Computershare

Limited. This company services more than 75 million shareholders across

7000 clients and makes its presence felt in over 12 countries across 5

12

continents. It has also entered into a 50-50 joint venture with Karvy. After

transferring completely to this new entity it has tried to enrich the financial

services industry as a whole. The worldwide network of Computershare helps

it to adapt to the international standards in addition to leveraging the best

technologies from all over the world.

This is a specialist Business Process Outsourcing unit of the Karvy Group. The

legacy of experience in financial services of Karvy Group acts as a big

support for entering the global arena with confidence of delivering the best.

This wing offers several models on the understanding of business needs that

are unique and therefore only a customized service could possibly fit the bill.

Their service matrix has permutations and combinations that create several

options to choose from. Its Services meet the most stringent International

standards, be it re-engineering and managing processes or delivering new

efficiencies.

Karvy Commodities focuses on taking commodities trading to new

dimensions of reliability and profitability. They have made commodities

13

trading, an essentially age-old practice, into a sophisticated and scientific

investment option. It helps in enabling trade in all goods and products of

agricultural and mineral origin that include lucrative commodities like gold

and silver and popular items like oil, pulses and cotton through a well-

systematized trading platform.

Karvy Insurance Broking Pvt. Ltd., provides both life and non-life insurance

products to retail individuals, high net-worth clients and corporates. With the

opening up of the insurance sector and entry of a large number of private

players in the business, it is in a position to provide tailor made policies for

different segments of customers.

(Karvy.com)

KARVY STOCK BROKING LIMITED (KSBL)

14

It is undisputable fact that the stock market is unpredictable and volatile, but

despite this KSBL enjoys a high success rate as a wealth management option.

Karvy Stock Broking Limited offers services that are much beyond serving

just as a medium for buying and selling stocks and shares. Instead it provides

multi dimensional and multi focused services. It offers trading facilities for

National Stock Exchange, Bombay Stock Exchange and Hyderabad Stock

Exchange and tries to make trading safe to maximum possible extent. For

this they are assisted by their in depth research team for constant feedback

and sound advices.

The Finapolis is the monthly magazine that is published by this wing. It

analyzes the latest stock market trends and takes a close look at the various

investment options and products available in the market. A weekly report,

called Karvy Bazaar Baatein, keeps people informed on the immediate

trends in the stock market.

In addition, the specific industry reports give more comprehensive

information on various industries. It also offers special portfolio analysis

packages that provide daily technical advice on scrips for successful portfolio

management. It provides customized advisory services to help the client

make right financial moves which specifically suits their portfolios.

(Karvy.com)

ORGANIZATION STRUCTURE

15

There are various departments and segments in KARVY STOCKBROKING

LIMITED. The segment of which I was a part of during my training process is

the SME segment. This segment caters especially to the needs of the SMALL

& MEDIUM ENTERPRISES.

Small and Medium Enterprises refers to organizations that are larger than

SOHOs (Small office/Home office) and smaller than the Fortune 1000. The

size is subjective ranging from approximately 25 to 500 employees.

The BASVANGUDI branch in Bangalore, where I took my internship is the first

branch all over India which has this segment. This segment’s operations were

initialized in 2006 to cater to the ever increasing demand and growth of the

SME Segment as it was found through a study, that most of the AMCs are

getting 55% to 60% of their sales by SMEs alone. Based on the performance

of this segment, plans will be laid down for opening up of such segments in

other branches too.

An important point to be noted is that The SME segment is emphasizing more

on Mutual Funds instead of equity, insurance and other products.

This segment concentrates approximately:

60% on Mutual Funds

30% on Equity

10% on Insurance and other products

So far, the performance of this segment has been good and it has been a

contributing factor in increasing the customer base of KARVY STOCK

BROKING LIMITED. Thus plans for opening of SME Segment in other

branches are shaping up.

16

STRUCTURE OF SME SEGMENT:

WHERE:

Relates to Back Office

RO - Relationship officer SRM - Service Relationship Manager

17

Sub dealer

Main dealer

Sub back office person

MF desk

HEAD

Wealth Manager

Wealth Manager

SRM SRM SRM SRM SRM SRM

RO

RO

RO

RO

RO

RO

RO

RO

RO

RO

RO

RO

Tele Sales

Tele Sales

PROCESS:

The process of the entire working of the SME segment takes place in

the following manner:

First the data is collected by the ROs, SRMs, Wealth Managers, Main

Dealer and the Head himself. This is done at all levels so that the data

is collected from all the resources available and is qualitative in terms

of conversions.

Once the data is acquired or sourced it is given to the Tele Marketing

or Sales team. They are expected to achieve a target of 60% through

their calls. The main aim of them is to get to the right client and

convince him for a meet.

Then the Tele callers fix appointments and forward the details of the

same to the ROs i.e. the Relationship Officers.

Next the ROs visit the client and inform them about the entire products

that would cater to the customer’s needs. His work is not just confined

to imparting the information to the client; moreover he has to extract

information from the client as well. He has to understand the

customer’s needs, risk taking ability and gives the details to the SRM if

the client is prospective.

Then the SRM meets the prospective clients and catering to the need

of them gathers information regarding the financial details of client, his

past investments, future investment capability etc. and gives it to the

Wealth Manager.

18

The Wealth Manager then designs the portfolio for the client based on

his analysis, study and advices from the R&D department and closes

the deal.

In the whole process mentioned above, there are 4 back office persons, who

assist the segment at all times in various works.

Main Dealer – Equity Desk

Sub Dealer – Assistant to Main Dealer

MF Research - Research on mutual funds

Sub Back office person – Responsible for sending reports and MIS

Reports are sent weekly for Equity and Mutual Funds and monthly for futures

and options.

This whole process is controlled and managed by the Segment Head.

19

PRODUCT & SERVICES

PRODUCTS

MUTUAL FUNDS:

CONCEPT:

A Mutual Fund is a form of collective investment that pools money from

many investors, who share common financial goals and invests their money

in stocks, bond, short term money market instruments and/or other

securities.

The income earned through these investments and the capital appreciations

realized are shared by its unit holders in proportion to the number of units

owned by them. Thus a Mutual Fund is the most suitable investment for the

common man as it offers an opportunity to invest in a diversified,

professionally managed basket of securities at a relatively low cost.

The flow chart below describes broadly the working of a mutual fund:

20

(amfiindia.com.com)

INDIAN MUTUAL FUND INDUSTRY:

The rising Indian mutual funds industry probably never had it better, as far as

the entry of individual or retail investors is concerned. The industry’s total

AUM in December 2006 stood at a hefty Rs 3, 23,597 crore, with a total of

2.79 crore depositor folios, of which 2.31 crore depositor folios had invested

in equity schemes. The share of direct investors, on the other hand, has been

dropping, stating that more retail investors see mutual funds as a preferred

route for investing in the markets.

Existing and new market players as well as Exchange Traded Funds are likely

to hit the market in the coming months with a flurry of new Mutual Funds

schemes. An action packed first quarter of 2007 was forecasted to witness at

least 20 new schemes which are waiting on the sidelines to be launched.

(Myiris.com)

21

PERFORMANCE SNAPSHOT!!!

The year 2006 scored high in terms of both returns and volatility. The rising

Indian mutual funds industry saw its best, as far as the entry of individual or

retail investors is concerned.

In 2006, out of the 159 diversified equity funds (includes diversified equity,

midcap, and equity tax saving schemes):

20 funds (13%) out-performed the Sensex

50 funds (37%) out-performed the Nifty

The best returns generated were up to 58.3% (Tata Infrastructure

Fund) and the worst being a negative 10.6%

Equity Diversified funds churned out an average 33.2% return, which

comprise of 72 fund in this category comprising of total 135 funds

Infrastructure funds stole the limelight this year with the top three

performers being Infrastructure Fund.

(Myiris.com)

22

TOTAL ASSET MANAGED BY VARIOUS FUND HOUSES:

The amount of assets managed by AMCs varies every year. Following is the

table that depicts the total amount of asset managed by the well known

AMCs in India. It also shows the ranking of AMCs for the year 2007, based on

the above mentioned parameter.

Fund House Jan 2007 Jan 2006 Dec 2006

Reliance MF 39,020 16,702 36,928

UTI MF 37,535 25,417 38,109

Prudential ICICI 34,746 22,635 33,305

HDFC MF 31,425 18,591 29,635

Franklin Templeton 23,908 18,153 23,403

Birla Sun Life 21,190 13,797 17,054

SBI MF 17,552 10,839 15,086

DSP Merrill Lynch 13,440 8,976 13,517

23

Tata MF 13,222 8,649 12,177

Standard Chartered 12,746 9,480 12,629

Kotak Mahindra 12,674 7,397 12,062

LIC MF 12,237 6,386 11,599

HSBC 12,140 6,288 10,450

Principal 10,333 6,789 10,522 Figures in Rs Crore Source: AMFI

Reliance MF has become the top mutual fund house in the

country by adding a very impressive Rs2, 092 crore to assets

under management.

Previous Top Fund House UTI MF declined by Rs574 crore and

lost its top position to Reliance MF.

Birla Sunlife was the best performer in January 2007 and

added Rs4, 136 crore to its assets

SBI MF was able to acquire 7th position by an addition of Rs2,

466 crore

Tata MF gained Rs1, 045 crore and able to secure its position

in top 10.

24

BEST EQUITY MUTUAL FUNDS:(As on 27th April, 2007)

Following is the ranking of the best mutual funds and their NAVs as on 27th

April, 2007. The rankings are based on 1 year returns of the Equity Mutual

Funds available in the market.

S.N

O

SCHEME NAME

1 YR

RETURN (%)

PRESEN

T NAV

1 DSPML Technology.com Fund – Growth 47.50 26.89

25

2 UTI Banking Sector Fund - Growth 40.05 21.47

3 Magnum IT 36.06 28.49

4 Birla Sunlife New Millennium - Growth 35.60 21.33

5 Banking BeEs 32.69 590.31

6 Prudential ICICI Technology - Growth 32.59 15.99

7 Prudential ICICI Services Industries

Fund – Growth

32.07 16.02

8 UTI Software – Growth 30.09 27.71

9 Reliance Media & Entertainment -

Growth

28.61 26.07

10 Birla Sunlife Frontline Equity - Growth 27.90 52.81

11 Reliance Banking – Growth 27.81 39.20

12 Reliance NRI Equity Fund – Growth 26.54 24.70

13 Franklin Infotech – Growth 25.95 52.62

14 DBS Chola Opportunity 25.85 28.63

15 Reliance Diversified Power Sector -

Growth

25.16 37.71

SOURCE: mutualfundsnavindia.com

TYPES OF MUTUAL FUNDS:

26

(Amfiindia.com)

EXPLAINATION:

Open ended Mutual Funds:

27

Types of Mutual Funds

By Structure Other Schemes

By Investment Objective

Interval Schemes

Close Ended Schemes

Open Ended Schemes Growth

Schemes

Money Market Schemes

Balanced Schemes

Income Schemes

Tax Saving Schemes (ELSS)

Special Schemes

Index Schemes

Sector Specific Schemes

It is a type of mutual fund where there are no restrictions on the amount of

shares the fund will issue. If demand is high enough, the fund will continue to

issue shares no matter how many investors there are. Open-end funds also

buy back shares when investors wish to sell. Most of the mutual funds

available in the marketplace are open-end funds. Open-end funds

are generally managed actively and are priced according to their net asset

value (NAV). Open-end funds are wide-ranging. Some Open-end funds are

more conservative and provide consistent returns with low risk, and some are

more aggressive in seeking to make capital gains through constant trading.

Close ended Mutual Funds:

When an investment company issues a fixed number of shares in an actively

managed portfolio of securities, it is referred to as close ended mutual funds.

The shares are traded in the market just like common stock. The main

difference with closed-end funds is that market price of the shares is

determined by supply and demand and not by net-asset value (NAV).Its

stipulated maturity period ranges from 3 to 15 years.

Interval Schemes:

It is a fund that combines the features of open-ended and closed-ended

schemes, making the fund open for sale or redemption during pre-

determined intervals. In other words, this is a mutual fund with redemption

features in between those of closed-end and open-end funds.

Growth Schemes:

It is a diversified portfolio of stocks that has capital appreciation as its

primary goal, and it thereby invests in companies that reinvest their

28

earnings into expansion, acquisitions, and/or research and development.

Most growth funds offer higher potential growth but usually at a higher risk.

Income Schemes:

This scheme seeks to provide stable current income by investing in securities

that pay interest. Income funds typically invest in utility stocks and blue

chips.

Balanced Scheme:

It is a type of mutual fund that invests its assets into the money market,

bonds, preferred stock, and common stock with the intention to provide both

growth and income. A balanced fund is geared towards investors looking for a

mixture of safety, income, and capital appreciation. The amount the mutual

fund invests into each asset class usually must remain within a set minimum

and maximum. It is also known as “Asset Allocation Fund”.

Money Market Schemes:

Money Market Schemes aim to provide easy liquidity, preservation of capital

and moderate income. These schemes generally invest in safer, short-term

instruments, such as treasury bills, certificates of deposit, commercial paper

and inter-bank call money.

Tax Saving Schemes:

Tax-saving schemes offer tax rebates to the investors under tax laws

prescribed from time to time. Under Sec.88 of the Income Tax Act,

29

contributions made to any Equity Linked Savings Scheme (ELSS) are eligible

for rebate @20% to a maximum of Rs10, 000 per financial year.

Index Schemes:

It is a portfolio of investments that is weighted the same as a stock-exchange

index in order to mirror its performance. This process is also referred to as

"indexing". Investing in an index fund is a form of passive investing. The

primary advantage to such a strategy is the lower management expense

ratio on an index fund. Also, a majority of mutual funds fail to beat broad

indexes such as the S&P 500.

Sector Specific Schemes:

It is an investment fund that makes investments solely in businesses that

operates in a particular industry or sector of the economy. Since the holdings

of this type of fund are in the same industry, there is an inherent lack of

diversification by sector associated with these funds. These funds tend to

increase substantially in price when there is an increased demand for the

product or service offering provided by the businesses in which the funds

invest. On the other hand, if there is a downturn in the specific sector in

which a sector fund invests, the fund will face heavy losses due to the lack of

diversification in its holdings.

(Amfiindia.com)

SELECTION CRITERIA FOR MUTUAL FUNDS:

I gave suggestions for Mutual Funds based on the following parameters:

30

Investment Objective of the client:

Whether the client is looking for long term investment or short, they require

high returns or tax savings etc, had to be analyzed. The investment objective

of the client should match with that of the particular Mutual Fund Scheme.

Past performance:

The previous returns of the funds mentioned in the investment brochures

were seen and the funds which have performed well and given high returns

were preferred and suggested to clients.

Consistency in returns:

The returns are not just expected to be high but a consistency should be

observed in the fund’s performance and returns. The previous year return for

a particular fund may be high but if it is not consistent in its performance

then that is a risky deal. Consistent funds are more suitable for risk averse

clients.

Tax benefits:

31

The investors whose objective was tax saving were advised to invest in Tax

saving Mutual Funds.

Fund Manager:

An investor will trust and invest his money in the funds which are managed

by well reputed fund managers. Thus this criterion is also of utmost

importance.

I made suggestions to the clients after taking into consideration the above

mentioned criterions and based on the mutual consent of the client as well,

the investment decision was then taken. The procedure for filling forms etc

followed.

If the investor had already invested in equities but wanted to open a Trading

and DMAT account, I had to explain them the charges and procedures for the

same.

32

INSURANCE:

CONCEPT:

Insurance, in law and economics, is a form of risk management primarily

used to hedge against the risk of a contingent loss. Insurance is defined as

the equitable transfer of the risk of a potential loss, from one entity to

another, in exchange for a premium.

Insurer, in economics, is the company that sells the insurance.

Insurance rate is a factor used to determine the amount, called the

premium, to be charged for a certain amount of insurance coverage. Risk

management, the practice of appraising and controlling risk, has evolved as a

discrete field of study and practice.

Sum Assured:

It is the amount of money an insurance policy guarantees to pay before any

bonuses are added.

Factors included in the calculation of sum assured are:

Date of birth

Gender

Duration

Health conditions

Job profile

33

TYPES OF INSURANCE:

(Wikipedia.com)

Life Insurance:

34

Types of Insurance

Non Life/ General Insurance

Life Insurance

-Term -Whole life -Money back-Endowment Assurance-Pension Plan-Unit Linked Product (ULIP)

-Property-Personal-Lifestyle-Package

All policies are not the same. Some give coverage for your lifetime and others

cover you for a specific number of years.

Following are the different types of life insurances:

Whole life

Term policy

Money pack

Endowment

Pension plan

ULIP

General Insurance:

General insurance typically comprises any insurance that is not determined

to be life insurance. It is called property and casualty (P&C) insurance in the

U.S. General insurance policies, including automobile, accidents and

homeowner’s policies, provide payments depending on the loss from a

particular financial event.

Following are the different types of general insurances:

Property

Personal

Lifestyle

Package

(Wikipedia.com)

PRESENT SCENARIO & FUTURE EXPECTATIONS:

35

Expansion, product innovations and reforms are three themes that are

and will dominate the life insurance business in 2007. Life insurance

companies are expected to record a 100 per cent increase in new business in

financial year 2007, and this growth is not going to taper off. According to

experts, the industry is confident of maintaining the rate, typical of a

flourishing industry. The fundamentals of the economy are good and the life

insurance industry is riding this boom.

The rise in disposable income of individuals has increased the need for

investment options. With aggressive sales and the two-in-one proposition of

unit-linked insurance plans (ULIPs), insurers are swooping in on this

opportunity, especially during the period preceding policy changes in ULIPs so

as to strengthen their insurance orientation.

(Amfiindia.com)

36

EQUITIES:

CONCEPT:

An equity share, commonly referred to as ordinary share, represents the form

of fractional ownership in a business venture.

Stockholders' equity is often referred to as the book value of the company,

and it comes from two main sources. The first and original source is the

money that was originally invested in the company, along with any

additional investments made thereafter.

The second comes from retained earnings that the company is able to

accumulate over time through its operations. In most cases, especially when

dealing with older companies that have been in business for many years, the

retained earnings portion is the largest component.

FACTORS THAT INFLUENCE THE PRICE OF THE STOCK:

Broadly there are two factors:

(1) Stock specific

(2) Market specific

The stock-specific factor is related to people’s expectations about the

company, its future earnings capacity, financial health and management,

level of technology and marketing skills.

37

The market specific factor is influenced by the investor’s sentiment towards

the stock market as a whole. This factor depends on the environment rather

than the performance of any particular company.

Events favorable to an economy, political or regulatory environment like high

economic growth, friendly budget, stable government etc. can fuel euphoria

in the investors, resulting in a boom in the market. On the other hand,

unfavorable events like war, economic crisis, communal riots, minority

government etc. depress the market irrespective of certain companies

performing well. However, the effect of market-specific factor is generally

short-term.

Despite ups and downs, price of a stock in the long run gets stabilized based

on the stock specific factors. Therefore, a prudent advice to all investors is to

analyze and invest and not speculate in shares.

ACQUIRING EQUITY SHARES:

There are two methods:

You may subscribe to issues made by corporates in the primary

market. In the primary market, resources are mobilized by the

corporates through fresh public issues (IPOs) or through private

placements.

OR

You may purchase shares from the secondary market. To buy and sell

securities you should approach a SEBI registered trading member

(broker) of a recognized stock exchange.

(Wikipedia.com)

38

The documents required for opening an account with KARVY are:

PAN card no.

Address proof

Passport size photos

Cheque (initial one time investment amount)

39

BONDS:

CONCEPT:

A Bond is a long term contract under which a borrower agrees to make

payments of interest and principal, on specific dates, to the holders of the

bond.

The organization that sells a bond is known as the issuer. Of course, no one

would loan his or her hard-earned money for nothing. The issuer of a bond

must pay the investor something extra for the privilege of using his or her

money. This "extra" comes in the form of interest payments, which are made

at a predetermined rate and schedule

Bonds are known as "fixed-income" securities because the amount of income

the bond will generate each year is "fixed," or set, when the bond is sold. No

matter what happens or who holds the bond, it will generate exactly the

same amount of money.

40

CLASSIFICATION OF BONDS:

SLR is the percentage of deposits that has to be invested in certain

designated securities. The current SLR is 25%. Also, in SLR Banking system is

very important.

SLR Bonds constitute of:

Government securities/ Gilt/GOI (govt. of India) Bonds

SDL( State Development Loans)

T- Bills (Treasury Bills)

Designated SLR Bonds

Non SLR Bonds constitute of:

Public sector units bonds like:

IRFC (Indian Railway Finance Corporation)

Power Finance Corporation

NHAI

Bank Bonds

State Guarantee Bonds

41

BONDS

SLRStatutory Liquidity

Ratio

NON SLRNon Statutory Liquidity Ratio

Rating of Bonds:

Bonds are rated by various rating agencies on the basis of the balance sheet

of the companies, macro economic factors, risk of the bonds. On the basis of

these ratings, companies set the coupon rate. High quality bonds have the

benchmark index and if the quality of the bonds decreases the return

increases because of the higher risk.

Following is the Bonds Rating starting from the best quality:

AAA

AA+

AA

A-

BB

BBB

Rating Agencies:

CRISIL - Credit Rating Information Services of India Limited

ICRA - Indian Credit Rating Agency

CARE - Credit Analysis and Research Limited

MOODYS - (International Agencies)

FITCH - (International Agencies)

Some bonds available in the market:

8.07 GS 2017: 8.1367 - 8.1667Coupon Interest Rate

91 day T - Bills 7.3521182 day T - Bills 7.7487364 day T - Bills 7.745Call Rates 5.5 to 9.45

42

Quality

Decreasing

DERIVATIVES:

CONCEPT

As the name suggests, derivative is a financial instrument that offers a return

based on the return of some other underlying asset. In this sense, its return is

derived from another instrument.

The definition states, a derivative's performance is based on the performance

of an underlying asset. This underlying asset is often referred to simply as the

underlying. It trades in a market in which buyers and sellers meet and decide

on a price; the seller then delivers the asset to the buyer and receives

payment. The price for immediate purchase of the underlying asset is called

the cash price or spot price.

A derivative also has a defined and limited life: A derivative contract initiates

on a certain date and terminates on a later date. Often the derivative's payoff

is determined and/or made on the expiration date, although that is not

always the case. In accordance with the usual rules of law, a derivative

contract is an agreement between two parties in which each does something

for the other. In other words, no money need change hands up front.

43

Types of Derivatives Over-the-counter (OTC) derivatives are contracts that are traded

(and privately negotiated) directly between two parties, without going

through an exchange or other intermediary. Products such as swaps,

forward rate agreements, and exotic options are almost always

traded in this way. The OTC derivatives market is huge. According to

the Bank for International Settlements, the total outstanding

notional amount is USD 298 trillion (as of 2005).

Exchange-traded derivatives are those derivatives products that

are traded via specialized Derivatives exchanges or other

exchanges. A derivatives exchange acts as an intermediary to all

related transactions, and takes Initial margin from both sides of the

trade to act as a guarantee.

There are 3 kinds of Derivative contracts:

Futures Contract

Forward Contract

Options Contract

44

SERVICES

KSBL (KARVY STOCKBROKING LIMITED), offer services that are beyond just a

medium for buying and selling stocks and shares. Instead KSBL provide

services which are multi dimensional and multi-focused in their scope. There

are several advantages in utilizing Karvy’s Stock Broking services, which are

the reasons why it is one of the best in the country.

Its highly skilled research team, comprising of technical analysts as well as

fundamental specialists, secure result-oriented information on market trends,

market analysis and market predictions. Crucial information regarding

customer individual account balances are given as a constant feedback to

them, through daily reports delivered thrice in a day.

The Pre-session Report, where market scenario for the day is

predicted.

The Mid-session Report, timed to arrive during lunch break, where

the market forecast for the rest of the day is given.

The Post-session Report, the final report for the day, where the

market and the report itself is reviewed.

In addition, the specific industry reports prepared by Karvy Stockbroking

Limited give comprehensive information on various industries. They also offer

special portfolio analysis packages that provide daily technical advice on

scrips for successful portfolio management and provide customized advisory

services to help investors make the right financial moves that are specifically

suited to their portfolio.

These services have increasingly offered customer oriented convenience,

which KSBL provides to a spectrum of investors, high-networth or otherwise,

with equal dedication and competence. But this is not the final destination

and just a pathway to reach there.

45

Over the years KSBL have ensured that the trust of its customers is their

biggest returns. Factors such as its success in the Electronic custody business

has helped build on its tradition of trust even more. Consequentially its retail

client base has expanded very fast.

To empower the investor further KSBL have made serious efforts to ensure

that their research calls are disseminated systematically to all its stock

broking clients through various delivery channels like: e-mails, chat, SMS,

phone calls etc.

Their foray into commodities broking has been path breaking and KSBL is in

the process of converting existing traders in commodities into the more

organized mainstream of trading in commodity futures, both as a trading and

risk hedging mechanism.

In the future, its focus will be on the emerging businesses and to meet this

objective, KSBL has enhanced its manpower and revitalized its knowledge

base with enhanced focus on Futures and Options as well as the commodities

business.

(Karvy.com)

46

DIPOSITORY PARTICIPANTS

The onset of the technology revolution in financial services Industry saw the

emergence of Karvy as an electronic custodian registered with National

Securities Depository Ltd (NSDL) and Central Securities Depository

Ltd (CSDL) in 1998. Karvy has further set standards enabling comfort to the

investor by promoting paperless trading across the country and emerged as

the Top 3 Depository Participants in the country in terms of customer

service.

KSBL has established live DPMs (Depository Participant Modules), Internet

access to accounts and an easier transaction process in order to offer more

convenience to individual and corporate investors. A team of professional and

the latest technological expertise allocated exclusively to the demat division

including technological enhancements like SPEED-e, makes the response

time quick and delivery impeccable. A wide national network makes

efficiencies accessible to all.

(Karvy.com)

47

DISTRIBUTION OF FINANCIAL PRODUCTS

The paradigm shift from pure selling to knowledge based selling drives this

industry today. With its wide portfolio offerings, Karvy occupies all segments

in the retail financial services industry.

The team of 1600 highly qualified and dedicated professionals, drawn from

the best academic and professional backgrounds is committed to maintaining

high levels of client service delivery. This has propelled this wing to grab a

position among the top distributors for equity and debt issues with an

estimated market share of 15% in terms of applications mobilized, besides

being established as the leading procurer in all public issues.

To further tap the immense growth potential in the capital markets it has

enhanced the scope of its retail brand, Karvy – the Finapolis, thereby

providing planning and advisory services to the mass affluent. Here they

understand the customer needs and lifestyle in the context of present

earnings and provide adequate advisory services that will necessarily help in

creating wealth. Judicious planning that is customized to meet the future

needs of the customer deliver a service that is exemplary. The market-savvy

and the ignorant investors, both find this service very satisfactory.

(Karvy.com)

48

ADVISORY SERVICES

Karvy’s retail brand ‘Karvy – the Finapolis', deliver advisory services to a

cross-section of customers. The service is backed by a team of dedicated and

expert professionals with varied experience and background of handling

investment portfolios. They are continually engaged in designing the right

investment portfolio for each customer according to individual needs and

budget considerations with a comprehensive support system that focuses on

trading customers' portfolios and providing valuable inputs, monitoring and

managing the portfolio through varied technological initiatives. This is made

possible by the expertise Karvy has gained in the business over the years.

Another venture towards being investor-friendly is the circulation of a

monthly magazine called ‘Karvy - the Finapolis'. It covers the latest market

news, trends, investment schemes and research-based opinions from experts

in various financial fields.

(Karvy.com)

49

PRIVATE CLIENT GROUPOR

CUSTOMIZED PORFOLIO MANAGEMNET SERVICES(CPMS)

Extending the expertise in personal financial advisory services, KARVY

STOCKBROKING LIMITED has now launched CPMS, a discretionary portfolio

management service for retail investors.

This specialized division is set up to cater to the high net worth individuals

and institutional clients keeping in mind that they require a different kind of

financial planning and management that augments not just existing finances

but their life-style as well.

 Each investor is a client who has unique parameters:

Return goals and objectives

Time horizon

Liquidity constraints

A distinctive tax status

Personal risk tolerances

Thus, the primary focus of CPMS is to provide individualized portfolio

management services for clients, personalized portfolios designed to fit a

specific investor’s investment parameters.

50

Each portfolio contains individually selected securities, which are not

commingled (pooled) with those of other investors, ensuring transparency

and flexibility in operations. There is also the benefit of investing in other

asset classes to suit client’s needs like Mutual Funds, Derivatives, Insurance

and even Real Estate.

A hard-nosed business approach with the soft touch of dedicated customer

care and personalized attention is followed here. A comprehensive and

personalized service that encompasses planning and protection of finances,

planning of business needs and retirement needs and a host of other

services, is provided on a one-to-one basis for this purpose.

Karvy’s research reports have been widely appreciated by this segment, and

have proved to be very useful at the same time. The delivery and support

modules have been fine tuned by giving the clients access to online portfolio

information, constant updates on their portfolios as well as value-added

advice on portfolio churning, sector switches etc. The investment

recommendations given by research team enjoy a high success rate in the

cash market.

51

MARKETING PLAN

The SME Segment where I interned is at a very nascent stage. It started its

operations from 1st March 2006. The main driving force behind setting up of

this segment was the fact that the SMEs form the largest customer base for

AMCs.

TARGET MARKET:

The main target customers for this segment are:

Small and Medium Enterprise

High Networth Individuals (HNIs)

The Small and Medium Enterprises are contacted through e-mails. KARVY

keeps updating its database which consists of contact numbers and e-mail

addresses of the Financial Heads of the corporates. Though these it is able to

contact the concerned person and send them all the details of the products

and services which KARVY deals in and are beneficial to them, from time to

time. It also plans Company visits occasionally wherein the Senior

Relationship Managers visit the companies and gives presentations on the

market updates and the best investment options available to the corporates.

The High Networth Individuals are also contacted through e-mails and calls.

This includes the ones who already have a fair idea of the investment options

and investing as well as the new budding investors who have little

knowledge.

52

Marketing in SME Segment:

This segment has performed well so far and has contributed in increasing the

customer base by retaining the old ones and tapping new ones.

MARKETING PROBLEMS:

The basic problem in marketing for this segment is that though it has a sound

customer base it is not taking much efforts or steps to expand it with

immediate effects.

According to my observation during the tenure of my internship I noticed that

the major part of marketing for this segment is from the word of mouth. The

satisfied customers refer their peer groups an option to invest with Karvy.

SME Segment is able to maintain its customer base but it has scope to

53

SMEHNI

Company Visits

Tele calls

E-mails

increase it. As this is the first segment, not much people are aware of its

workings.

COMPETITORS OF KARVY

KARVY serves a vast range of all financial products like advisory services,

Mutual funds, Bonds, Insurances etc, so all the companies who offer these

services are the competitors of the Karvy. There are many competitors for

KARVY on this basis and almost all of them offer the services which Karvy

offers.

Few Major competitors are:

1. India bulls

2. Motilal oswal securities

3. IL & FS investsmart Ltd.

4. SSKI Ltd. (Sharekhan)

5. Bonanza securities

6. Kotak Securities

7. CIL Securities

8. Eastern Financiers

To get first hand details about them we visited a few stock broking houses

and talked about the financial instruments available with their company, their

charges for investments and the documents required by them.

Followings are the list of the companies we visited:

Anand Rathi Securities

54

IL & FS Investsmart

JRG Securities

Motilal Oswal Securities

India bulls

55

Comparative AnalysisS. NO

BASIS KARVY STOCK BROKING LTD

INDIABULLS IL&FS INVESTSMART

MOTILAL OSWAL SECURITIES LTD

ANANDRATHI SECURITIES LTD

1 REACH

NO. OF BRANCHES

OVER 200 OVER 640 OVER 200 1160 132

2.1 BROKERAGE INTRADAY 5 PAISE 10 PAISE 5 PAISE 4 PAISE 5 PAISE

2.2 BROKERAGE DELIVERY 50 PAISE 50 PAISE 50 PAISE 40 PAISE 50 PAISE

2.3 BROKERAGE FUTURE 5 PAISE 10 PAISE 5 PAISE 4 PAISE 5 PAISE

3.1 DEMAT A/C & TRADING A/C OPENING CHARGE

Rs. 455 Rs. 900 Rs 950 Rs. 500 Rs 450

3.2 DEMAT A/C

ANNUAL MAINTENANCE CHARGE

NIL NIL NIL Rs. 450 NIL

4 EXPOSURE INTRADAY

DELIVERY

DAYS LIMIT

Depends

Depends

Depends

8 Times

4 Times

7 Days

Depends

Depends

Depends

2 Times

Depends

Depends

Depends

Depends

Depends

5 PMS

MINIMUM INVESTMENT

Rs. 1 LACS Rs 5 LACS Rs 25 LACS Rs 5 LACS Rs 25 LACS

(Self collected Data)

56

LEARNINGS

Working at KARVY STOCKBROKING LIMITED was largely an overwhelming

experience with gaining insights to a number of new things. The On-The Job

experience made it a worthwhile Internship, which gave me a great real time

Industry experience.

All is not the same in real life as we read in books and on net about the

working methods of different divisions and segments. Each segment in an

organization has its own work culture followed by the members and same

was the case with SME segment at Karvy Stock Broking Ltd. I had to put in

my own efforts and take initiative to learn and gain maximum knowledge

possible during this period.

Primarily, the description of my work as a Management Trainee was to assist

the wealth managers by understanding the needs of the individual investors

and corporate houses and expanding the customer base of Karvy- SME

Segment where I interned. The work assigned definitely required awareness

and understanding of the all the financial products Karvy Stockbroking dealt

in. It also required me to know the procedures and documents involved in

purchase of any product by the client. I just had a basic idea of the products

KARVY dealt in prior internship, thus, acquiring knowledge about the same

was very exciting.

There were training sessions held on various financial products like MF,

insurance, and bonds which helped me get more insight in these topics.

Interactive session was held by the Mutual Fund expert, which proved quite

useful but still Mutual Funds is a vast topic and it is possible to gain full

knowledge about it only after practically dealing in it.

57

Having knowledge about the product was just the initial step which prepared

me to face the questions asked by the inquisitive clients we targeted. Every

step I had a new lesson to learn.

The whole process started with first hand data collection. For this we visited

the corporate houses in Kormangala as well as collected data from banks,

clubs and other sources. We also collected data from few of our own

contacts that we thought could be useful. Getting the data from corporate

houses was difficult as no one really entertained visitor from stock broking

companies for appointments. Moreover it was difficult to get the contact

number of the finance heads of the companies, but we still managed and

managed well.

The next step was tele-calling on the database collected. During telecalling,

we learnt the art of introducing ourselves and the company to the clients. It

taught us how to approach clients and suggest them various investment

options. Our main aim was to convince the prospective clients for

appointment. We learnt that to understand the client’s mood at that point of

time was also important. You had to be polite and confident. If a client

wanted to be called back at a specified time, I did so without fail. No

negligence was tolerated on this part as first impression is the last impression

and I didn’t want to lose out on any prospective client

The time given by the client for the meet was given utmost importance. I and

my colleague tried to reach the meeting place in time so that the client didn’t

have to wait. The entire experience of meeting the clients, explaining them

the products, and based on the questions asked by us, as well as the client,

analyzing their risk taking capability and investment capacity was a learning

in itself.

58

After gathering above information about the clients, we used to discuss the

client’s details with the Wealth Managers. Based on their investment

requirement, investment objective, risk taking ability and the investment

capability we would come up with suggestions as to where they should invest

and how much.

If the client had already invested in any of the financial products, we tried

gathering details about the same. If the client had already invested in

equities and wanted to invest in safer investment options, we suggested him

to go for Income scheme in Mutual Funds or Bonds.

There were investors who wanted high returns but didn’t want to take greater

risk. To such investors investments in mutual funds rather than equities was

suggested. Investors wanting to invest for taxes saving purpose were

suggested to invest in Tax Saving Mutual Funds like SBI Magnum Tax Gain,

HDFC tax Benefit Scheme.

I also gave a presentation on the basis of self study and trainings provided to

me on Mutual Funds. This helped me improve my presentation skills and

knowledge about the same. As a student, I have given many presentations

but this one gave me a chance to face the corporate heads as evaluators.

The feedback for the same was good but scope for improvement always

remains.

Also the deadlines given to me for completion of assignments and reports

helped me experience real time corporate work pressure. My awareness and

knowledge on the investment options, which was minimal prior internship has

strengthened and expanded post internship.

59

Other than working ‘Live’ at the office I also benefited by assignments given

to us such as visiting other competitors of KARVY STOCKBROKING LIMITED

and gathering investment advices from their side for new and budding

investors. Usually for new investors they either suggest Insurance (if the

client doesn’t have one), Mutual Funds or Equities but for long term.

The experience and know-how gained from this internship, has left me in

more compliant form and stature in order to fare better in areas of similar

interest. With an optimistic view towards future, and with the desire to

implement all the knowledge gained, I hereby conclude my report on my

Internship at KARVY STOCKBROKING LIMITED- SME Segment,

Bangalore.

60

BIBLIOGRAPHY

"Introduction." www.karvy.com. 17 April. 2007 http://www.karvy.com/contactus/overview

"History." www.karvy.com. 15 April. 2007 http://www.karvy.com/contactus/earlydays

Milestone." www.karvy.com. 14 April. 2007 http://www.karvy.com/contactus/milestone

"Achievements." www.karvy.com. 12 April. 2007 http://www.karvy.com/contactus/achievements

"Karvy group of Companies." www.karvy.com. 15 April. 2007 http://www.karvy.com/contactus/karvygroupofcompanies

"Stock Broking Service." www.karvy.com. 2 May. 2007 http://www.karvy.com/contactus/karvygroupofcompanies

"Depository Participants." www.karvy.com. 3 May. 2007 http://www.karvy.com/contactus/stockbrokingservice

"Distribution Of Financial Products." www.karvy.com. 5 May. 2007 http://www.karvy.com/contactus/karvystockbrokingservice

"Advisory Services." www.karvy.com. 2 May. 2007 http://www.karvy.com/contactus/karvystockbrokingservice

"Private Client Group." www.karvy.com. 1 May. 2007 http://www.karvy.com/contactus/karvystockbrokingservice

61

"Karvy Alliance." www.karvy.com. 12 April. 2007 http://www.karvy.com/contactus/karvystockbrokingservice

"Quality Policy." www.karvy.com. 12 April. 2007 http://www.karvy.com/contactus/overview

"Mutual Funds." www.amfiindia.com. 13 April. 2007 http://www.amfiindia.com/showhtml.asp?page=mfconcept

"Mutual Funds." www.myiris.com. 13 April. 2007 http://www.myiris.com/showhtml.asp?page=mf

"Mutual Funds." www.mutualfundsnavindia.com. 13 April. 2007 http://www.mutualfundsnavindia.com/rankings2007/showhtml.asp?page=mf

"Bonds." www.amfiindia.com. 2 May. 2007 http://www.investopedia.com/articles/02/120202.asp

"Insurance." www.amfiindia.com. 3 May. 2007 http://www.imfiindia.com/articles/02/120247.asp

"Insurance." www.wikipedia.com. 3 May. 2007 http://www.Wikipedia.com/articles/02/120247.asp

"Derivatives." www.finpipe.com. 2 May. 2007 http://www.finpipe.com/derivglossary.htm

"Equity." www.wikipedia.com. 2 May. 2007 http://en.wikipedia.org/wiki/Equity

62