A SUMMER TRAINING REPORT

izing the investment of ones funds. Five phases can be ident2.

Research & Methodology2.1 Objectives of the Study2.2. Research Methodology Research DesignSources of data Sampling Technique Sample size, if any Methods of data collection Tools and techniques of analysis 2.3. Limitations of the Study39-41

3.Data Analysis & Interpretation42-57

4.Findings 59-60

5.Recommendations 62

6.ANNEXURES: QuestionnaireBIBLIOGRAPHY/REFERENCES63

CHAPTER- I

Introduction

Introduction

1.1INDUSTRY OVERVIEWOverview of Industry as a WholeDo you know that the world's foremost marketplace New York Stock Exchange (NYSE), started its trading under a tree (now known as 68 Wall Street) over 200 years ago? Similarly, India's premier stock exchange Bombay Stock Exchange (BSE) can also trace back its origin to as far as 125 years when it started as a voluntary non-profit making association. You hear about it any time it reaches a new high or a new low, and you also hear about it daily in statements like 'The BSE Sensitive Index rose 5% today'. Obviously, stocks and stock markets are important. Stocks of public limited companies are bought and sold at a stock exchange. But what really are stock exchanges? Known also as TV News on the stock market appears in different media every day. he stock market or bourse, a stock exchange is an organized marketplace for securities (like stocks, bonds, options) featured by the centralization of supply and demand for the transaction of orders by member brokers, for institutional and individual investors. The exchange makes buying and selling easy. For example, you don't have to actually go to a stock exchange, say, BSE - you can contact a broker, who does business with the BSE, and he or she will buy or sell your stock on your behalf.All stock exchanges perform similar functions with respect to the listing, trading, and clearing of securities, differing only in their administrative machinery for handling these functions. Most stock exchanges are auction markets, in which prices are determined by competitive bidding. Trading may occur on a continuous auction basis, may involve brokers buying from and selling to dealers in certain types of stock, or it may be conducted through specialists dealing in a particular stock. But where did it all start? The need for stock exchanges developed out of early trading activities in agricultural and other commodities. During the middle Ages, traders found it easier to use credit that required supporting documentation of drafts, notes and bills of exchange. The history of the earliest stock exchange, the French stock exchange, may be traced back to 12th century when transactions occurred in commercial bills of exchange.The first stock exchange in India, Bombay Stock Exchange was established in 1875 as 'The Native Share and Stockbrokers Association' and has evolved over the years into its present status as the premier stock exchange in the country. It may be noted that BSE is the oldest stock exchange in Asia, even older than the Tokyo Stock Exchange, which was founded in 1878. The country's second stock exchange was established in Ahmedabad in 1894, followed by the Calcutta Stock Exchange (CSE). CSE can also trace its origin back to 19th century. From a get together under a 'Neem Tree' way back in the 1830s, the CSE was formally established in May 1908. India's other major stock exchange National Stock Exchange (NSE), promoted by leading financial institutions, was established in April 1993. Over the years, several stock exchanges have been established in the major cities of India. There are now 23 recognized stock exchanges Mumbai (BSE, NSE and OTC), Calcutta, Delhi, Chennai, Ahmedabad, Bangalore, Bhubhaneswar, Coimbatore, Guwahati, Hyderabad, Jaipur, Kochi, Kanpur, Ludhiana, Mangalore, Patna, Pune, Rajkot, Vadodara, Indore and Meerut. Today, most of the global stock exchanges have become highly efficient, computerized organizations. Computerized networks also made it possible to connect to each other and have fostered the growth of an open, global securities market.Realizing there is untapped market of investors who want to be able to execute their own trades when it suits them, brokers have taken their trading rooms to the Internet. Known as online brokers, they allow you to buy and sell shares via Internet.Online Trading is a service offered on the Internet for purchase and sale of shares. In the real world, you place orders on your stockbroker either verbally (personally or telephonically) or in a written form (fax). In Online Trading, you will access a stockbroker's website through your internet-enabled PC and place orders through the broker's internet-based trading engine. These orders are routed to the Stock Exchange without manual intervention and executed thereon in a matter of a few seconds.There are 2 types of online trading service: discount brokers and full service online broker. Discount online brokers allow you to trade via Internet at reduced rates. Some provide quality research, other dont. Full service online brokerage is linked to existing brokerages. These brokers allow their clients to place online orders with the option of talking/ chatting to brokers if advice is needed. Brokerage rates here are higher. 5Paisa.com, ICICIDirect.com, IndiaBulls.com, sharekhan.com, HDFCsec.com, Tatatdw.com, HMRstreet.com are some of the online broking sites in India.

Stock Market

With the backing of the World Bank group, many developing countries started giving prominence to stock markets for financing enterprises and allocation of savings. In India too, the process started in the early eighties. In the wake of increased pace of economic liberalization initiated in 1991, the Capital Issues Control Act, 1947, which till then regulated the issue and pricing of new capital, was done away with and even greater emphasis was placed on the stock market. As a part of the measures to develop the stock market and liberalization of the external sector, foreign institutional investors were invited to trade directly on the Indian stock exchanges. The main expectations were that the market would help corporate raise resources directly from investors, help attract foreign portfolio capital and facilitate the process of privatization. The entry of foreign portfolio/institutional investors (FIIs) was expected to broaden the base of the market and also help in the markets development by forcing developing country governments to follow consistent and market friendly policies. Through their expert analysis and research, FIIs were expected to help in better price discovery. Since 1991, a number of measures at improving share trading and delivery mechanisms and investor protection ranging from more periodic disclosures, takeover regulations, insider trading rules, corporate governance code, etc. have been introduced by the Securities and Exchange Board of India ( SEBI), the market regulator.

PARTIES INVOLVED IN SHARE TRADING

1.BOMBAY STOCK EXCHANGE (BSE) Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich heritage. Popularly known as "BSE", it was established as "The Native Share & Stock Brokers Association" in 1875. It is the first stock exchange in the country to obtain permanent recognition in 1956 from the Government of India under the Securities Contracts (Regulation) Act, 1956.The Exchange's pivotal and pre-eminent role in the development of the Indian capital market is widely recognized and its index, SENSEX, is tracked worldwide. Earlier an Association of Persons (AOP), the Exchange is now a demutualised and corporative entity incorporated under the provisions of the Companies Act, 1956, pursuant to the BSE (Corporatisation and Demutualization) Scheme, 2005 notified by the Securities and Exchange Board of India (SEBI).

The Exchange has a nation-wide reach with a presence in 417 cities and towns of India. The systems and processes of the Exchange are designed to safeguard market integrity and enhance transparency in operations. During the year 2004-2005, the trading volumes on the Exchange showed robust growth.

The Exchange provides an efficient and transparent market for trading in equity, debt instruments and derivatives. The BSE's On Line Trading System (BOLT) is a proprietary system of the Exchange and is BS 7799-2-2002 certified. The surveillance and clearing & settlement functions of the Exchange are ISO 9001:2000 certified.

2. NATIONAL STOCK EXCHANGE (NSE)

Capital market reforms in India have outstripped the process of liberalization in most other sectors of the economy. However, the creation of an independent capital market regulator was the initiation of this reform process. After the formation of the Securities Market regulator, the Securities and Exchange Board of India (SEBI), attention were drawn towards the inefficiencies of the bourses and the need was felt for better regulation, discipline and accountability. A Committee recommended the creation of a 2nd stock exchange in Mumbai called the "National Stock Exchange". The Committee suggested the formation of an exchange which would provide investors across the country a single, screen based trading platform, operated through a VSAT network.

It was on this recommendation that setting up of NSE as a technology driven exchange was conceptualized. NSE has set up its trading system as a nation-wide, fully automated screen based trading system. It has written for itself the mandate to create a world-class exchange and use it as an instrument of change for the industry as a whole through competitive pressure. NSE was incorporated in 1992 and was given recognition as a stock exchange in April 1993. It started operations in June 1994, with trading on the Wholesale Debt Market Segment. Subsequently it launched the Capital Market Segment in November 1994 as a trading platform for equities and the Futures and Options Segment in June 2000 for various derivative instruments.NSE was set up with the objectives of:(a) Establishing a nationwide trading facility for all types of securities;(b) Ensuring equal access to investors all over the country through an appropriate communication network;(c) Providing a fair, efficient and transparent securities market using electronic trading system;(d) Enabling shorter settlement cycles and book entry settlements; and(e) Meeting international benchmarks and standards.

NSE has been able to take the stock market to the doorsteps of the investors. The technology has been harnessed to deliver the services to the investors across the country at the cheapest possible cost. It provides a nation-wide, screen-based, automated trading system, with a high degree of transparency and equal access to investors irrespective of geographical location. The high level of information dissemination through on-line system has helped in integrating retail investors on a nation-wide basis. The standards set by the exchange in terms of market practices, products, technology and service standards have become industry benchmarks and are being replicated by other market participants.Within a very short span of time, NSE has been able to achieve all the objectives for which it was set up. It has been playing a leading role as a change agent in transforming the Indian Capital Markets to its present form. The Indian Capital Markets are a far cry from what they used to be a decade ago in terms of market practices, infrastructure, technology, risk management, clearing and settlement and investor service.

FUTURE OUTLOOK

With increasing globalisation and consolidation amongst exchanges, the future of the regional stock exchanges, around 22 in India, is likely to be very uncertain and even their very survival is a question mark.SEBI has permitted the regional exchanges to form subsidiary companies, which are akin to super brokers. These companies have acquired membership of both BSE and NSE at confessional entry fees and permitted their members to trade on the BSE and NSE thus increasing trade volumes and business in both BSE and NSE.The stock markets of the future will have a redefined purpose and reinvented architecture due to the advent and widespread use of technology. Information and stock price quotations are available almost instantaneously and more importantly investors can act on this data by executing a trade from anywhere at any time.This new market will bring benefits to investors, listed companies, and the economies of countries. Trading will be cheaper, faster and settlement will be simpler and with reduced risk. Raising capital for companies will be easier, thus contributing directly to economic expansion. The leaders in this new world of investing will be the ones willing to be agents of change, to best meet the needs of investors and companies, and to do what is best for these two principal stakeholders in the capital markets.If done right, the stock markets of the future will be even better vehicles than today in helping companies grow, creating jobs, providing fair investment opportunities for people, and in improving economies.Both the exchanges, BSE and NSE, are visionary, proactive and increasingly use leading-edge technologies to effectively compete in the global environment.

1.2Profile of EDELWEISS

Edelweiss is one of the leading financial services company in India. Its current businesses include investment banking, securities broking, and investment management. It provides a wide range of services to corporations, institutional investors and high net-worth individuals.

1.3 Evolution of the company:

The Edelweiss Group is a conglomerate of 31 entities including 28 Subsidiaries and 2 Associate companies, engaged in the business of providing financial services, primarily linked to the capital markets. It operates from 43 other offices in 19 Indian cities. Since its commencement of business in 1996, it has grown into a diversified Indian financial services company organized under agency and capital business lines operated by the Company and its thirteen subsidiaries. The Managing Director and C.E.O of the company is Mr.Rashesh Shah. Edelweiss Capital Limited (www.edelcap.com), incorporated in 1995, today has emerged as one of Indias leading integrated financial services conglomerates. The Edelweiss group offers one of the largest ranges of products and services spanning varied asset classes and diversified consumer segments. Its businesses are broadly divided into Investment Banking, Asset Management, Broking Services and Loans. The companys research driven approach and consistent ability to capitalize on emerging market trends has enabled it to foster strong relationships across corporate, institutional and HNI clients. Edelweiss Capital Limited employs over 1500 employees, leveraging a strong partnership culture and unique model of employee ownership1.4 Organizational structure

The Board comprises of four independent and two non-executive directors out of a total of eight directors, each of whom brings in his own expertise in diverse areas. The focus is on strong corporate governance. There is an Independent Risk Committee headed by an external director.

4.2.1 BOARD OF DIRECTORS

The Board comprises of four independent and two non-executive directors out of a total of eight directors, each of whom brings in his own expertise in diverse areas. The focus is on strong corporate governance. There is an Independent Risk Committee headed by an external director.

4.3 Financial Performance at a Glance

Edelweiss over the past few years has delivered strong operating and financial performance. It has a strong track record of high growth and profitability. Our revenues have grown at a 4-year CAGR of 149% while our net profits have increased at a 4-year CAGR of 143% upto March 08. As on March 31, 2008 Edelweiss Group Net worth stood at over Rs. 23 billion including minority interest, indicating a strong balance sheet. Equity capital is the primary source of funding for the company besides debt. The leverage as on 31st March 2008 is below 1:1 indicating the healthy position whereby the balance sheet can be further levered easily for improving the ROEs.

4.3.1 Consolidated Financial Performance of Edelweiss Capital Limited

4.4 Business Overview

Edelweiss operations are broadly divided into Agency and Capital business lines. The strategies employed ensure that the divide would broadly remain equal among the two. The Agency business line includes Investment Banking, Broking - both Institutional and HNI, Asset management and Investment advisory services. The Capital business line includes Lending and Treasury Operations.

4.4.1 Investment Banking

Edelweiss has one of the most extensive product offerings within Investment Banking in India, catering to different market and client segments. The verticals within Investment Banking include Equity Capital Markets, Mergers & Acquisitions Advisory, Private Equity Syndication, Structured Finance Advisory, Real Estate Advisory and Infrastructure Advisory.

4.4.2 Broking

Institutional Equities

Edelweiss has one of the leading institutional equities businesses in India backed by a large and experienced research team and a large and diversified client base. Intense servicing, seamless execution and innovative research products have helped Edelweiss build strong relationships with over 300 institutional investors, including FIIs and domestic institutional investors. Research coverage presently extends to over 200 companies across 19 sectors.

Private Client Broking

Edelweiss offers dedicated brokerage services to high net-worth individuals with a strong emphasis on building long-term relationships with clients. Product offerings include specialized trading execution for active trading clients and structured products like equity linked capital protection products.

Wealth Management

The Primary focus is on understanding each HNI client's profile including life style, risk appetite, growth expectations, current financial position and income requirements to create comprehensive and tailored investment strategies. Edelweiss offers customized products along with practice models and advisory teams specializing in servicing the underserved NRI segment. The broad range of offerings includes asset allocationadvisory to Structured Products, Portfolio Management, Mutual Funds, Insurance, Derivatives Strategies, Direct Equity, Private Equity, and Real Estate Funds etc.

Asset Management

Alternative Asset Management focuses on advisory/management expertise for Private Equity Fund, India focused Multi-Strategy Fund, Real Estate Fund and a Bonds Fund. Recent Initiatives that have been announced include setting up an ARC and a Distressed Assets Fund. On the Domestic AMC side, Edelweiss Mutual Fund has launched two Debt Funds, one Liquid Fund and one ELSS Fund.

Treasury

The Treasury Operations in Edelweiss is similar to that of a Treasury in a Commercial Bank and focuses on liquidity management and yield optimization. This division has adopted a multistrategy/multi-book approach to diversify and grow its portfolio while imparting liquidity in the balance sheet. The Company follows a disciplined and conservative approach to cash management with emphasis on strong risk policies and capital preservation.

Lending

With a deep knowledge and understanding of capital markets, the Companys primary offering in the lending business includes products such as promoter funding, loan against shares, IPO financing, Loan against ESOPs etc. Its prudent financing norms and a conservative margin of safety ensures low or nil nonperforming loans.

Financial Products Distribution

Among the recent initiatives, Financial Products Distribution focuses on giving advice and analyzing the best financial product options available in the market. It involves the distribution of the full range of third party financial products and services for the retail customer.

competitors information ICICIdirect.com

Products and ServicesA product for every need: ICICIdirect.com is the most comprehensive website, which allows you to invest in Shares, Mutual funds, Derivatives (Futures and Options) and other financial products. Simply put we offer you a product for every investment need of yours.ICICI Web Trade Limited (IWTL) maintains ICICIdirect.com. IWTL is an Affiliate of ICICI Bank Limited and the Website is owned by ICICI BankLimitedProduct & Services :1.Trading in shares:ICICIdirect.com offers you various options while trading in shares. Cash Trading: This is a delivery based trading system, which is generally done with the intention of taking delivery of shares or monies. Margin Trading: You can also do an intra-settlement trading upto 3 to 4 times your available funds, wherein you take long buy/ short sell positions in stocks with the intention of squaring off the position within the same day settlement cycle. (ONLY for intraday)Margin PLUS Trading: Through Margin PLUS you can do an intra-settlement trading upto 25 times your available funds, wherein you take long buy/ short sell positions in stocks with the intention of squaring off the position within the same day settlement cycle. Margin PLUS will give a much higher leverage in your account against your limits.Spot Trading: When you are looking at an immediate liquidity option, 'Cash on Spot' may work the best for you, On selling shares through "cash on spot", money is credited to your bank a/c the same evening & not on the exchange payout date. This money can then be withdrawn from any of the ICICIBank ATMs. BTST : Buy Today Sell Tomorrow (BTST) is a facility that allows you to sell shares even on 1st and 2nd day after the buy order date, without you having to wait for the receipt of shares into your demat account.CallNTrade: CallNTrade allows you to call on a local number in your city & trade on the telephone through our Customer Service Executives. This facility is currently available in over 11 major states across India. Trading on NSE/BSE: Through ICICIdirect.com, you can trade on NSE as well as BSE.2. TRADE IN DERIVATIVES:FUTURESThrough ICICIdirect.com, you can now trade in index and stock futures on the NSE. In futures trading, you take buy/sell positions in index or stock(s) contracts having a longer contract period of up to 3 months.Presently only selected stocks, which meet the criteria on liquidity and volume, have been enabled for futures trading. Calculate Index and Know your Margin are tools to help you in calculating your margin requirements and also the index & stock price movements..OPTIONSTo take the buy/sell position on index/stock options, you have to place certain % of order value as margin. With options trading, you can leverage on your trading limit by taking buy/sell positions much more than what you could have taken in cash segment. 3. Mutual Funds:4. IPOs and Bonds Online: You could also invest in Initial Public Offers (IPOs) and Bonds online without going through the hassles of filling ANY application form/ paperwork. Get in-depth analyses of new IPOs issues (Initial Public Offerings), which are about to hit the market and analysis on these. IPO calendar, recent IPO listings, prospectus/offer documents, and IPO analysis are few of the features, which help you, keep on top of the IPO markets.

INDIA BULLS

Indiabulls Group is one of the top business houses in the country with business interests in Real Estate, Infrastructure, Financial Services, Retail, Multiplex and Power sectors. Indiabulls Group companies are listed in Indian and overseas markets and have a market capitalization of over USD 7 billion. The Networth of the Group exceeds USD 2.5 billion. Indiabulls Group companies enjoy highest ratings from CRISIL, a subsidiary of Standard and Poors. Indiabulls has been conferred the status of a Business Superbrand by The Brand Council, Superbrands India.Indiabulls Financial Services is an integrated financial services powerhouse providing Consumer Finance, Housing Finance, Commercial Loans, Life Insurance, Asset Management and Advisory services. Indiabulls Financial Services Ltd is amongst 68 companies constituting MSCI - Morgan Stanley India Index. Indiabulls Financial is also part of CLSAs model portfolio of 30 Best Companies in Asia. Indiabulls Financial Services signed a joint venture agreement with Sogecap, the insurance arm of Societ Generale (SocGen) for its upcoming life insurance venture. Indiabulls Financial Services in partnership with MMTC Limited, the largest commodity trading company in India, is setting up Indias 4th Multi-Commodities Exchange. Indiabulls Real Estate Limited is Indias third largest property company with development projects spread across residential projects, commercial offices, hotels, malls, and Special Economic Zones (SEZs) infrastructure development. Indiabulls Real Estate partnered with Farallon Capital Management LLC of USA to bring the first FDI into real estate. Indiabulls Real Estate is transforming 14 million sqft in 16 cities into premium quality, high-end commercial, residential and retail spaces. Indiabulls Real Estate has diversified significantly in the following three business verticals within the real estate space: Real Estate Development, Project Advisory & Facilities Management: Residential, Commercial (Office and Malls) and SEZ Development. Power: Thermal and Hydro Power Generation. Retail: Departmental Stores, Hypermarket Stores, Daily Needs Neighborhood Stores.Indiabulls Securities Limited is Indias leading capital markets company with All-India Presence and an extensive client base. Indiabulls Securities possesses state of the art trading platform, best broking practices and is the pioneer in trading product innovations. Power Indiabulls, in-house trading platform, is one of the fastest and most efficient trading platforms in the country. Indiabulls Securities Limited is the first and only brokerage house to be assigned the highest rating BQ 1 by CRISIL.

S.W.O.T. Analysis of Edelweiss limited Strengths The `do-it-yourself' framework of online share trading offers retail investors the three benefits of transparency, access and efficiency. Paperwork diminishes significantly, and no more painful trips to your broker to check if everything's in order. Online trading has made it possible to universalize access to retail investors. This was earlier very difficult, as the cost of servicing often-outweighed transaction volumes. Online brokerage ranges between 0.05-0.20 per cent of the value of transactions for non-delivery-based trades, and between 0.25-0.95 per cent for delivery-based trades. Once major investments in online infrastructure are over and done with - and with the economies of scale coming into play - it is expected that brokerage rates would head further downwards. Access to online trading and latest financial happenings, apart from quotes and unbiased investment analyses, all consolidate into a value-added product mix in tandem with evolving markets that are freer and fairer. The Net result: An inquisitive, informed and demanding investor. Today's investor is more involved in managing his or her assets and analyzing a vast array of investment options. Technology and today's enabled investor have, in turn, driven competition, resulting in reduced costs of trading, transparency in dealings, and pricing info that is accurate and real-time. More and more investors now want to know how their trades are executed, and whether they have received the best possible price. Critical components of execution quality include the prices at which orders were executed as well as the speed of execution. The quality of execution, in turn, hinges on efficient order routing. We owe this to our investor fraternity. Weakness Everything in the world has a flip side to it - Transaction velocity is crucial. And more often than not, connections are lousy. There's also a degree of investor skepticism about online payment and settlement mechanisms in spite of all the encryption and fire walling brought into play. Time and technology will soon assuage these concerns, which hark back to the `physical' days. The three main technology obstacles which have prevented Internet broking from taking off are: Lack of Internet penetration Bandwidth infrastructure Poor quality of ISP infrastructure.Opportunities You have some money to dabble with. Trading shares on BSE/NSE has always been your dream. When will you ever find the time? And besides, the hassle of finding a broker is not easy. This is your main opportunity. Realizing there is untapped market of investors who want to be able to execute their own trades when it suits them, brokers have taken their trading rooms to the Internet. Known as online brokers, they allow you to buy and sell shares via Internet. There are 2 types of online trading service: discount brokers and full service online broker. Discount online brokers allow you to trade via Internet at reduced rates. Some provide quality research, other dont. Full service online brokerage is linked to existing brokerages. These brokers allow their clients to place online orders with the option of talking/ chatting to brokers if advice is needed. Brokerage rates here are higher. 5Paisa.com, ICICIDirect.com, IndiaBulls.com, Sharekhan.com, Geojit securities.com, HDFCsec.com, Tatatdw.com, Kotakstreet.com are some of the online broking sites in India. And daily trading turnover is estimated in the vicinity of 0.75 per cent of the combined BSE and NSE daily turnover of about RS 11,000 crore!!! The point is, there's tremendous scope for growth. Especially when you consider the US, where trading over the Net accounts for about 55 per cent of the total volumes. And, I believe, in some Asian markets the figures as high as 70 per cent.Threats On to some threat perception - Domestic funds, foreign institutional investors and operators comprise the three main market constituents. And all three include term investors as well as opportunists in their pecking order. Some, for instance, hitch their fate with what the FIIs are up to. All this spells spurting volumes. But nobody gives a damn about the resultant volatility. And some, not all, offer free investment advice over the Net to lure rookie investors with misleading information. Prices of scripts can also be influenced to the advantage of vested interests, courtesy the Net. Unlike in the US, stockbrokers out here willingly (or under the force of circumstance) assume the role of `advisors',

1.3introduction about the topic Portfolio (finance) means a collection of investments held by an institution or a private individual. Holding a portfolio is often part of an investment and risk-limiting strategy called diversification. By owning several assets, certain types of risk (in particular specific risk) can be reduced. There are also portfolios which are aimed at taking high risks these are called concentrated portfolios. Investment management is the professional management of various securities (shares, bonds etc) and other assets (e.g. real estate), to meet specified investment goals for the benefit of the investors. Investors may be institutions (insurance companies, pension funds, corporations etc.) or private investors (both directly via investment contracts and more commonly via collective investment schemes e.g. mutual funds).

The term asset management is often used to refer to the investment management of collective investments, whilst the more generic fund management may refer to all forms of institutional investment as well as investment management for private investors. Investment managers who specialize in advisory or discretionary management on behalf of (normally wealthy) private investors may often refer to their services as wealth management or portfolio management often within the context of so-called "private banking".

The provision of 'investment management services' includes elements of financial analysis, asset selection, stock selection, plan implementation and ongoing monitoring of investments. Outside of the financial industry, the term "investment management" is often applied to investments other than financial instruments. Investments are often meant to include projects, brands, patents and many things other than stocks and bonds. Even in this case, the term implies that rigorous financial and economic analysis methods are used.

Need of PMS

As in the current scenario the effectiveness of PMS is required. As the PMS gives investors periodically review their asset allocation across different assets as the portfolio can get skewed over a period of time. This can be largely due to appreciation / depreciation in the value of the investments.

As the financial goals are diverse, the investment choices also need to be different to meet those needs. No single investment is likely to meet all the needs, so one should keep some money in bank deposits and / liquid funds to meet any urgent need for cash and keep the balance in other investment products/ schemes that would maximize the return and minimize the risk. Investment allocation can also change depending on ones risk-return profile.Objective of PMS There are the following objective which is full filled by Portfolio Management Services.1. Safety Of Fund: -The investment should be preserved, not be lost, and should remain in the returnable position in cash or kind.

2. Marketability: -The investment made in securities should be marketable that means, the securities must be listed and traded in stock exchange so as to avoid difficulty in their encashment.

3. Liquidity: - The portfolio must consist of such securities, which could be en-cashed without any difficulty or involvement of time to meet urgent need for funds. Marketability ensures liquidity to the portfolio.

4. Reasonable return: - The investment should earn a reasonable return to upkeep the declining value of money and be compatible with opportunity cost of the money in terms of current income in the form of interest or dividend.

5. Appreciation in Capital: - The money invested in portfolio should grow and result into capital gains.

6. Tax planning: - Efficient portfolio management is concerned with composite tax planning covering income tax, capital gain tax, wealth tax and gift tax.

7. Minimize risk: -Risk avoidance and minimization of risk are important objective of portfolio management. Portfolio managers achieve these objectives by effective investment planning and periodical review of market, situation and economic environment affecting the financial market.

MYTHS ABOUT PMS

There are two most common myths found about Portfolio Management Services (PMS) which we found among most of the Investors. They are as follows. Myth No. 1: PMS and Mutual Fund are Similar as the investment option

As in the Finance Basket both the PMS and Mutual Fund are used for minimizing risk and maximize the profit of the Investors. The objectives are similar as in both the product but they are different from each other in certain aspects. They are as follows.Management Side In PMS, its ongoing personalized access to professional money management services. Whereas, in Mutual fund gives personalize access to money.CustomizationIn PMS, Portfolio can be tailored to address each investor's specific needs. Whereas in Mutual Fund Portfolio structured to meet the fund's stated investment objectives.Ownership In PMS, Investors directly own the individual securities in their portfolio, allowing for tax management flexibility, whereas in Mutual Fund Shareholders own shares of the fund and cannot influence buy and sell decisions or control their exposure to incurring tax liabilities.Liquidity In PMS, managers may hold cash; they are not required to hold cash to meet redemptions, whereas, Mutual funds generally hold some cash to meet redemptions.

Minimums PMS generally gives higher minimum investments than mutual funds. Generally, minimum ranges from: Rs. 1 Crore + for Equity Options Rs. 5 Crore + for Fixed Income Options Rs. 20 Lacs + for Structured Products, whereas in Mutual Fund Provide ongoing, personalized access to professional money management services.

FlexibilityPMS is generally more flexible than mutual funds. The Portfolio Manager may move to 100% cash if it required. The Portfolio Manager may take his own time in building up the portfolio. The Portfolio Manager can also manage a portfolio with disproportionate allocation to select compelling opportunities whereas, in Mutual Fund comparatively less flexible. Myth No. 2: PMS is more Risk free than other Financial Instrument

In Financial Market Risk factor is common in all the financial products, but yes it is true that Risk Factor vary from each other due to its nature. All investments involve a certain amount of risk, including the possible erosion of the principal amount invested, which varies depending on the security selected. For example, investments in small and mid-sized companies tend to involve more risk than investments in larger companies.

PORTFOLIO CONSTRUCTION The Portfolio Construction of Rational investors wish to maximize the returns on their funds for a given level of risk. All investments possess varying degrees of risk. Returns come in the form of income, such as interest or dividends, or through growth in capital values (i.e. capital gains).

The portfolio construction process can be broadly characterized as comprising the following steps:

1. Setting objectives. The first step in building a portfolio is to determine the main objectives of the fund given the constraints (i.e. tax and liquidity requirements) that may apply. Each investor has different objectives, time horizons and attitude towards risk. Pension funds have long-term obligations and, as a result, invest for the long term. Their objective may be to maximize total returns in excess of the inflation rate. A charity might wish to generate the highest level of income whilst maintaining the value of its capital received from bequests. An individual may have certain liabilities and wish to match them at a future date. Assessing a clients risk tolerance can be difficult. The concepts of efficient portfolios and diversification must also be considered when setting up the investment objectives.

2. Defining Policy. Once the objectives have been set, a suitable investment policy must be established. The standard procedure is for the money manager to ask clients to select their preferred mix of assets, for example equities and bonds, to provide an idea of the normal mix desired. Clients are then asked to specify limits or maximum and minimum amounts they will allow to be invested in the different assets available. The main asset classes are cash, equities, gilts/bonds and other debt instruments, derivatives, property and overseas assets. Alternative investments, such as private equity, are also growing in popularity, and will be discussed in a later chapter. Attaining the optimal asset mix over time is one of the key factors of successful investing.

3. Applying portfolio strategy. At either end of the portfolio management spectrum of strategies are active and passive strategies. An active strategy involves predicting trends and changing expectations about the likely future performance of the various asset classes and actively dealing in and out of investments to seek a better performance. For example, if the manager expects interest rates to rise, bond prices are likely to fall and so bonds should be sold, unless this expectation is already factored into bond prices. At this stage, the active fund manager should also determine the style of the portfolio. For example, will the fund invest primarily in companies with large market capitalizations, in shares of companies expected to generate high growth rates, or in companies whose valuations are low? A passive strategy usually involves buying securities to match a preselected market index. Alternatively, a portfolio can be set up to match the investors choice of tailor-made index. Passive strategies rely on diversification to reduce risk. Outperformance versus the chosen index is not expected. This strategy requires minimum input from the portfolio manager. In practice, many active funds are managed somewhere between the active and passive extremes, the core holdings of the fund being passively managed and the balance being actively managed.

4. Asset selections.

Once the strategy is decided, the fund manager must select individual assets in which to invest. Usually a systematic procedure known as an investment process is established, which sets guidelines or criteria for asset selection. Active strategies require that the fund managers apply analytical skills and judgment for asset selection in order to identify undervalued assets and to try to generate superior performance.

5. Performance assessments

In order to assess the success of the fund manager, the performance of the fund is periodically measured against a pre-agreed benchmark perhaps a suitable stock exchange index or against a group of similar portfolios (peer group comparison). The portfolio construction process is continuously iterative, reflecting changes internally and externally. For example, expected movements in exchange rates may make overseas investment more attractive, leading to changes in asset allocation. Or, if many large-scale investors simultaneously decide to switch from passive to more active strategies, pressure will be put on the fund managers to offer more active funds. Poor performance of a fund may lead to modifications in individual asset holdings or, as an extreme measure; the manager of the fund may be changed altogether.

Steps to Stock Selection Process

Types of Assets

The structure of a portfolio will depend ultimately on the investors objectives and on the asset selection decision reached. The portfolio structure takes into account a range of factors, including the investors time horizon, attitude to risk, liquidity requirements, tax position and availability of investments. The main asset classes are cash, bonds and other fixed income securities, equities, derivatives, property and overseas assets.

Cash and cash instruments

Cash can be invested over any desired period, to generate interest income, in a range of highly liquid or easily redeemable instruments, from simple bank deposits, negotiable certificates of deposits, commercial paper (short term corporate debt) and Treasury bills (short term government debt) to money market funds, which actively manage cash resources across a range of domestic and foreign markets. Cash is normally held over the short term pending use elsewhere (perhaps for paying claims by a non-life insurance company or for paying pensions), but may be held over the longer term as well. Returns on cash are driven by the general demand for funds in an economy, interest rates, and the expected rate of inflation. A portfolio will normally maintain at least a small proportion of its funds in cash in order to take advantage of buying opportunities.

Bonds

Bonds are debt instruments on which the issuer (the borrower) agrees to make interest payments at periodic intervals over the life of the bond this can be for two to thirty years or, sometimes, in perpetuity. Interest payments can be fixed or variable, the latter being linked to prevailing levels of interest rates. Bond markets are international and have grown rapidly over recent years. The bond markets are highly liquid, with many issuers of similar standing, including governments (sovereigns) and state-guaranteed organizations. Corporate bonds are bonds that are issued by companies. To assist investors and to help in the efficient pricing of bond issues, many bond issues are given ratings by specialist agencies such as Standard & Poors and Moodys. The highest investment grade is AAA, going all the way down to D, which is graded as in default. Depending on expected movements in future interest rates, the capital values of bonds fluctuate daily, providing investors with the potential for capital gains or losses. Future interest rates are driven by the likely demand/ supply of money in an economy, future inflation rates, political events and interest rates elsewhere in world markets. Investors with short-term horizons and liquidity requirements may choose to invest in bonds because of their relatively higher return than cash and their prospects for possible capital appreciation. Long-term investors, such as pension funds, may acquire bonds for the higher income and may hold them until redemption for perhaps seven or fifteen years. Because of the greater risk, long bonds (over ten years to maturity) tend to be more volatile in price than medium- and short-term bonds, and have a higher yield.

Equities

Equity consists of shares in a company representing the capital originally provided by shareholders. An ordinary shareholder owns a proportional share of the company and an ordinary share carries the residual risk and rewards after all liabilities and costs have been paid. Ordinary shares carry the right to receive income in the form of dividends (once declared out of distributable profits) and any residual claim on the companys assets once its liabilities have been paid in full. Preference shares are another type of share capital. They differ from ordinary shares in that the dividend on a preference share is usually fixed at some amount and does not change. Also, preference shares usually do not carry voting rights and, in the event of firm failure, preference shareholders are paid before ordinary shareholders. Returns from investing in equities are generated in the form of dividend income and capital gain arising from the ultimate sale of the shares. The level of dividends may vary from year to year, reflecting the changing profitability of a company. Similarly, the market price of a share will change from day to day to reflect all relevant available information. Although not guaranteed, equity prices generally rise over time, reflecting general economic growth, and have been found over the long term to generate growing levels of income in excess of the rate of inflation. Granted, there may be periods of time, even years, when equity prices trend downwards usually during recessionary times. The overall long-term prospect, however, for capital appreciation makes equities an attractive investment proposition for major institutional investors.

Derivatives

Derivative instruments are financial assets that are derived from existing primary assets as opposed to being issued by a company or government entity. The two most popular derivatives are futures and options. The extent to which a fund may incorporate derivatives products in the fund will be specified in the fund rules and, depending on the type of fund established for the client and depending on the client, may not be allowable at all.

A futures contract is an agreement in the form of a standardized contract between two counterparties to exchange an asset at a fixed price and date in the future. The underlying asset of the futures contract can be a commodity or a financial security. Each contract specifies the type and amount of the asset to be exchanged, and where it is to be delivered (usually one of a few approved locations for that particular asset). Futures contracts can be set up for the delivery of cocoa, steel, oil or coffee. Likewise, financial futures contracts can specify the delivery of foreign currency or a range of government bonds. The buyer of a futures contract takes a long position, and will make a profit if the value of the contract rises after the purchase. The seller of the futures contract takes a short position and will, in turn, make a profit if the price of the futures contract falls. When the futures contract expires, the seller of the contract is required to deliver the underlying asset to the buyer of the contract. Regarding financial futures contracts, however, in the vast majority of cases no physical delivery of the underlying asset takes place as many contracts are cash settled or closed out with the offsetting position before the expiry date.

An option contract is an agreement that gives the owner the right, but not obligation, to buy or sell (depending on the type of option) a certain asset for a specified period of time. A call option gives the holder the right to buy the asset. A put option gives the holder the right to sell the asset. European options can be exercised only on the options expiry date. US options can be exercised at any time before the contracts maturity date. Option contracts on stocks or stock indices are particularly popular. Buying an option involves paying a premium; selling an option involves receiving the premium. Options have the potential for large gains or losses, and are considered to be high-risk instruments. Sometimes, however, option contracts are used to reduce risk. For example, fund managers can use a call option to reduce risk when they own an asset. Only very specific funds are allowed to hold options.

Property

Property investment can be made either directly by buying properties, or indirectly by buying shares in listed property companies. Only major institutional investors with long-term time horizons and no liquidity pressures tend to make direct property investments. These institutions purchase freehold and leasehold properties as part of a property portfolio held for the long term, perhaps twenty or more years. Property sectors of interest would include prime, quality, well-located commercial office and shop properties, modern industrial warehouses and estates, hotels, farmland and woodland. Returns are generated from annual rents and any capital gains on realization. These investments are often highly illiquid.

Types of Portfolios The different types of Portfolio which is carried by any Fund Manager to maximize profit and minimize losses are different as per their objectives .They are as follows.

Aggressive Portfolio:

Objective: Growth. This strategy might be appropriate for investors who seek High growth and who can tolerate wide fluctuations in market values, over the short term.

Growth Portfolio:

Objective: Growth. This strategy might be appropriate for investors who have a preference for growth and who can withstand significant fluctuations in market value.

Balanced Portfolio:

Objective: Capital appreciation and income. This strategy might be appropriate for investors who want the potential for capital appreciation and some growth, and who can withstand moderate fluctuations in market values

Conservative Portfolio:

Objective: Income and capital appreciation. This strategy may be appropriate for investors who want to preserve their capital and minimize fluctuations in market value.

TECHNIQUES OF PORTFOLIO MANAGEMENT

Various types of portfolio require different techniques to be adopted to achieve the desired objectives. Some of the techniques followed in India by portfolio managers are summarized below.

(1). Equity portfolio-Equity portfolio is affected by internal and external factors:

(a) Internal factors Pertain to the inner working of the particular company of which equity shares are held. These factors generally include: Market value of shares Book value of shares Price earnings ratio (P/E ratio) Dividend payout ratio

(b) External factors Government policies Norms prescribed by institutions (3) Business environment (4) Trade cycles

(2). Equity stock analysis

The basic objective behind the analysis is to determine the probable future value of the shares of the concerned company. It is carried out primarily fewer than two ways. :

Trend of earning: -

A higher price-earnings ratio discount expected profit growth. Conversely, a downward trend in earning results in a low price-earnings ratio to discount anticipated decrease in profits, price and dividend. Rising EPS causes appreciation in price of shares, which benefits investors in lower tax brackets? Such investors have not pay tax or to give lower rate tax on capital gains. Many institutional investor like stability and growth and support high EPS.

Growth of EPS is diluted when a company finances internally its expansion program and offers new stock. EPS increase rapidly and result in higher P/E ratio when a company finances its expansion program from internal sources and borrowings without offering new stock. Quality of reported earning: -

Quality of reported earnings affects P/E ratio. The factors that affect the quality of reported earnings are as under:

Depreciation allowances: -Larger (Non Cash) deduction for depreciation provides more funds to company to finance profitable expansion schemes internally. This builds up future earning power of company.

Research and development outlets: - There is higher P/E ratio for a company, which carries R&D programs. R&D enhances profit earning strength of the company through increased future sales.

Inventory and other non-recurring type of profit: - Low cost inventory may be sold at higher price due to inflationary conditions among profit but such profit may not always occur and hence low P/E ratio.

(C) Dividend policy: -Dividend policy is significant in affecting P/E ratio. With higher dividend ratio, equity price goes up and thus raises P/E ratio. Dividend rates are raised to push in share prices up. Dividend cover is calculated to find out the time the dividend is protected, In terms of earnings. It is calculated as under:Dividend Cover = EPS / Dividend per Share(D) Investors demand: -Demand from institutional investors for equity also enhances the P/E ratio.Edelweiss limited Portfolio Management Services

PMS

Pro TechPro Arbitrage Pro Prime

Pro PrimeProduct Approach Investment will be keeping in mind 3 investment tenets. Consistent, steady and sustainable returns. Margin of Safety Low Volatility

Product Offering Pro Prime is the ideal for investors looking at steady and superior with low and medium risk appetite.The portfolio consists of a blend of quality blue chip and growth stocks ensuring a balanced portfolio with relatively medium risk profile.The portfolio constitutes of relatively large capitalization stocks, based on sector and themes which have medium to long term growth potential.

Product Characteristics Bottom up stock selection In depth ,independent fundamental research High quality companies with relatively large capitalization Disciplined valuation approach applying multiple valuation measure. Medium to long term vision, resulting in low portfolio turnover.How to invest? Minimum Investment : 10 Lacs Lock in : 6 months Reporting: Access to website showing clients holding .Monthly reporting of portfolio holding /transaction. Charges: 2.5% pa AMC (Annual Maintenances Charges) fees charged every quarter ,0.5% brokerage ,20% profit sharing after 15% hurdle is crossed chargeable at the end of fiscal year.

Pro Arbitrage Product ApproachAn opportunity lies in basis which is the difference between cash and future. Whenever basis is high we buy the stocks and sell the future to lock in difference .The difference is bound to be zero at expiry.

Product Offered Cash future arbitrage:The product intends to spot low risk opportunities which will yield more than the normal low risk product. Whenever such opportunity is spotted stocks will be bought and to lock in the basis, future will be sold .This position will be liquated in the expiry or before that if the basis vanishes early .Similarly the scheme will move on from opportunity to opportunity.Product Characteristics Low Risk: This is relatively low risk product which can be compared with liquid funds issued by mutual funds.High return: Compared with other low risk products, this products offers an indicative post tax return of 8 to 10% plus.

Product Details Minimum Investment:Rs.1 Crore Lock in :6 months Reporting: Fortnightly for portfolio Net worth, Monthly reporting pf portfolio Holding /transaction. Charges: 0.035% brokerage for future ,0.07% for delivery

Pro TechProtech using the knowledge of technique analysis and the power of depravities markets to identify trading opportunities in the market .The protech line of the product is designed around various risk /reward /volatility profiles for the different kind of investment needs.

Product Approach Better performance is possible from superior market timing and from picking stocks before inflation points in their trading cycles. Linear return are possible from having hedged/ sell market positions in downtrends. Absolute return are targeted by focusing on finding trading opportunities & not out performance of an index.Product offered 1. Nifty Thirty :Nifty futures will be bought and sold on the basis of an automated trading system generated calls to go long/short. The exposure will never exceed the value of portfolio i.e. no leveraging; but allows us to be short /hedged in Nifty in falling market therefore allowing the client to earn irrespective of the market direction.

2. Beta Portfolio :Positional trading opportunities are identified in the future segment based on technical analysis. Inflection points in the momentum cycles are identified to go long /short on stock/index futures with 1-2 months time horizon .The idea is to generate the best possible return in the medium term irrespective of the direction of the market without really leveraging beyond the portfolio value. Risk protection is done based on stop losses on daily closing prices.

3. Star Nifty:Swing trading technique and Dow theory is used to identify short term reversal levels for Nifty futures and ride with trend both on the long and short side .This return can be earned in bull and bear market .Stop and reverse means to reverse ones position from long to short or vice a versa at the reversal levels simultaneously .The exposure never exceeds value of portfolio i.e. there is no leveraging.

4. Trailing Stops. Momentum trading techniques are used to spot short term momentum of 5-10 days in stocks and stocks /index futures .Trailing stop loss method of risk management or profit protection is used to lower the portfolio volatility and maximize return .Trading opportunities are exposed both on the long side and the short side as the market demands to get the best of both upward and downward trends.

Product Characteristics Using swing based index trading systems stop and reverse .trend following and momentum trading technique. Nifty based products for low impact cost and low product volatility Both long and short strategies to earn returns even in falling market. Trading in future market to allow for active risk protection using trailing stop losses.

How to invest? Minimum : Rs.10 Lacs Lock in : 6 months Reporting: Fortnightly reporting of portfolio Net Worth, monthly reporting of portfolio Holding /Transaction.Charges: 0% AMC (Annual Maintenance Charges), 0.05% brokerage for derivatives, 20% profit sharing on booked profit quarterly basis.

CHAPTER- IIResearch & Methodology

2.1OBJECTIVES To know the concept of Portfolio Management Services. To know about the awareness in public towards stock brokers and share market. To study about the competitive position of Edelweiss Limited in Competitive Market. To study about the effectiveness & efficiency of Edelweiss Limited in relation to its competitors

2.2METHODOLOGY adopted Research Methodology The methodology section is the blue print for researcher activity and specifies bow the investigator intents to study the people or describe social settings. In other words the methodology section make explicit the study desire and constitutes the how to do it phase.The project study has been conducted by collecting primary data only using structured questionnaire.I have put my best possible effort to do this research and collect the necessary information to learn about this topic thoroughly.

RESEARCH DESISGN OF THE STUDYThis report is based on primary as well secondary data, however primary data collection was given more importance since it is overhearing factor in attitude studies. Sampling Technique: The tool used for smpling is Simple random sampling.

Types of researches:The type of research conducted is Descriptive Research.

Primary data: The tool used for collection of primary data is Questionnaire.

Secondary data: secondary data is collected through Company database, magazines, newspaper.

Sample size: The sample size on which the reseach is conducted is 100.

Area of Observation: The sample was selected from the area of Delhi.2.3limitations

This research is a descriptive research and in these types of researches, the researcher has no control over the variables. He can only report what has happened or what is happening. For such a wide research topic, a sample size of around 100 is not sufficient. Insufficient sample unit. Time constraint. Matching the time with the clients. Getting in contact with the clients. Communication Gap between the clients and the surveyor. Downfall of the secondary market made people reluctant of opening a trading account. People involved in trading were not in favor of switching over to some other company for trading.

CHAPTER- 3Data Analysis & Interpretation

DATA ANALYSIS1. Do you know about the Investment Option available?

Interpretation

As the above table shows the knowledge of Investor out of 100 respondent carried throughout the Delhi-NCR Area is only 85%. The remaining 15% take his/her residential property as an investment. According to law purpose this is not an investment because of it is not create any profit for the owner. The main problem is that in this time from year 2012-2013 , the recession and the Inflation make the investor think before investing a even a Rs. 100.So , it also create the problem for the Investor to not take interest in Investment option.

2. What is the basic purpose of your Investments?

Interpretation

As with the above analysis, it is found 75% people are interested in liquidity, returns and tax benefits. And remaining 25% are interested in capital appreciations, risk covering, and others. In the entire respondent it is common that this time everyone is looking for minimizing the risk and maximizing their profit with the short time of period.As explaining them About the Portfolio Management Services of Edelweiss Limited, they were quite interested in Protech Services.

3. What is the most important factor you consider at the time of Investment?

Interpretation

As the above analysis gives the clear idea that most of the Investors considered the market factor as around 12% for Risk and 23% Return, but most important common things in all are that they are even ready for taking both Risk and Return in around 65% investor.Moreover, the Market is fluctuating now days, so as it also getting improvement. So, Investor are looking for Investment in long term and Short-term.

4. From which option you will get the best returns?

InterpretationMost of the respondents say they will get more returns in Share Market. Since Share Market is said to be the best place to invest to get more returns. The risk in the investment is also high.Similarly, the Investor are more Interested in Investing their money in Mutual Fund Schemes as that is also very important financial product due to its nature of minimizing risk and maximizing the profit. As the commodities market is doing well from last few months so Investor also prefer to invest their money in Commodities Market basically in GOLD nowadays. Moreover, even who dont want to take Risk they are looking for investing in Fixed Deposit for long period of time.

5. Investing in PMS is far safer than Investing in Mutual Fund. Do you agree?

Interpretation In the above graphs its clear that 24% of respondent out of hundred feel that investing their money in Mutual Fund Scheme are far safer than Investing in PMS. this is because of lack of proper information about the Portfolio management services. As the basis is same for the mutual fund and PMS but the investment pattern is totally different from each other and which depends upon different risk factor available in both the Financial Products.

6. How much you carry the expectation in Rise of your Income from Investments?

InterpretationThe optimism is shown in the attitude of the respondents. The confidence was appreciable with which they are looking forward to a rise in their investments. Major part of the sample feels that the rise would be of around 15%. Only 8% of the respondents were confident enough to expect a rise of upto 35%.As all the respondents were considering the Risk factor also before filling the questionnaire and they were asking about the performance report of all the PMS services offered by Edelweiss Limited.

7. If you invested in Share Market, what has been your experience?

Interpretation

20% of the respondents have invested in Share market and received satisfactory returns, 40% of the respondents have not at all invested in Share Market. Some of the investors face problems due to less knowledge about the market. Some of the respondents dont have complete overview of the happenings and invest their money in wrong shares which result in Loss. This is the reason most of the respondents prefer Portfolio Management Services to trade now a days, which gives the Investor the clear idea when is the right time to buy and right time to sell the shares which is recommended by their Fund Manger.

8. How do you trade in Share Market?

Interpretation As we know that Share market is totally based on psychological parameters of Investors, which changed as per the market condition, but at the same time the around 45% investor trade on the basis of speculation and 31% depend upon Investment option Bonds, Mutual Funds etc.Moreover, the now a days Hedging is most common derivatives tools which is used by the Investor to get more return from the Market ,this is mostly used in the Commodities Market.

9. How do you manage your Portfolio?

Interpretation About 57% of the respondents say they themselves manage their portfolio and 43% of the respondents say they depends on the security company for portfolio Management. 43% of the respondents prefer PMS of the company because they dont have to keep a close eye on their investment; they get all the information time to time from their Fund Manager.Moreover, talking about the Edelweiss Limited PMS services they are far satisfied with the Pro tech and Prop rime Performance during last year. They are satisfied with the quick and active services of Edelweiss Limited customer services where, they get the updated knowledge about the scrip detail everyday from their Fund Manager.

10. If you trade with Edelweiss Limited then why?

InterpretationAs the above research shows the reasons and the parameters on which investor lie on Edelweiss Limited and they do the trade.Among hundred respondents 35% respondents do the trade with the company due to its research Report, 28% based on Brokerage Rate whereas 22 % are happy with its Services.Last but not the least, 15% respondents are depends upon the tips of Edelweiss Limited which gives them idea where to invest and when to invest.At the time of research what I found is that still Edelweiss Limited need to make the clients more knowledge about their PMS product.

11. Are you using Portfolio Management services (PMS) of Edelweiss Limited?

Interpretation As talking about the Investment option, in most of clients it was common that they know about the Option but as the PMS of Edelweiss Limited have different Product offering, Product Characteristics and the Investment amount is also different this makes the clients to think differently. It is found that 56% of Edelweiss Limited client where using PMS services as for their Investment Option.

12. Which Portfolio Type you preferred?

Interpretation The above analysis shows, in which portfolio the investor like to deal more in PMS.As 45% investor likes to go for Equity Portfolio and 28% with Balanced Portfolio, whereas around 27% investor like to, go for Debt Portfolio.

13. How was your experience about Portfolio Management services (PMS) of Edelweiss Limited?

Interpretation

In the above analysis it is clear that the Investor have the good and the bad experience both with the IIFL PMS services.In this current scenario 52% of the Investor earned, whereas around 18% have to suffer losses in the market. Similarly 30% of the Respondents are there in Breakeven Point (BEP), where no loss and no profit.

14. Does Edelweiss Limited keep it PMS process Transparent?

Interpretation

The above analysis is talking about the Edelweiss Limited Transparency of their PMS services. In hundred respondents 63% said that they get all the information about their scrip buying and selling information day by day, where as 37% of respondents are not satisfied with the PMS information and Transparency because they dont get any type of extra services in PMS as they were saying.

15. Do you recommend Edelweiss Limited PMS to others?

Interpretation The above analysis shows the Investor perception toward the Edelweiss Limited PMS as on the basis of their good and bad experience with Edelweiss Limited. Among hundred respondents 86% respondents were agree to recommend the PMS of Edelweiss Limited to their peers, relatives etc.

CHAPTER- 4 Findings

FINDINGS About 85% Respondents knows about the Investment Option, because remaining 15% take his /her residential property as Investment, but in actual it not an investment philosophy carries that all the Investment does not create any profit for the owner.

More than 75% Investors are investing their money for Liquidity, Return and Tax benefits.

At the time of Investment the Investors basically considered the both Risk and Return in more %age around 65%.

As among all Investment Option for Investor the most important area to get more return is share around 22%after that Mutual Fund and other comes into existence.

More than 76% of Investors feels that PMS is less risky than investing money in Mutual Funds.

As expected return from the Market more than 48% respondents expect the rise in Income more than 15%, 32% respondents are expecting between 15-25% return.

As the experience from the Market more than 34% Investor had lose their money during the concerned year, whereas 20% respondents have got satisfied return.

About 45% respondents do the Trade in the Market with Derivatives Tools Speculation compare to 24% through Hedging .And the rest 31% trade their money in Investments.

Around 57% residents manage their Portfolio through the different company whereas 43%Investor manage their portfolio themselves.

The most important reasons for doing trade with Edelweiss Limited is Edelweiss Limited Research Department than its Brokerage rate Structure.

Out of hundred respondents 56% respondents are using Edelweiss Limited PMs services.

Investors preferred more than 45% equity Portfolio, 28%Balanceed Portfolio and about 27% Debt Portfolio with Edelweiss Limited PMS.

About 52% Respondents earned through Edelweiss Limited PMS product, whereas 18% investor faced loses also.

More than 63% Investor are happy with the Transparency system of Edelweiss Limited.

As based on the good and bad experience with Edelweiss Limited around 86% are ready to recommended the PMS of Edelweiss Limited to their peers, relatives etc.

CHAPTER- 5 Recommendations

RECOMMENDATIONS

The company should organize seminars and similar activities to enhance the knowledge of prospective and existing customers, so that they feel more comfortable while investing in the stock market.

Companies must make Investors feel safe about their money invested.

Investors accounts must be kept more transparent as compared to other companies.

Edelweiss Limited must try to promote more its Portfolio Management Services through Advertisements

Edelweiss Limited needs to improve its Customer Services

There is need to change the lock in period in all three PMS i.e .Protech, Proprime, Pro Arbitrage.

Conclusion :On the basis of the study it is found that Edelweiss Limited is better services provider than the other stockbrokers because of their timely research and personalized advice on what stocks to buy and sell. Edelweiss Ltd. provides the facility of Trade tiger as well as relationship manager facility for encouragement and protects the interest of the investors. It also provides the information through the internet and mobile alerts that what IPOs are coming in the market and it also provides its research on the future prospect of the IPO. We can conclude the following with above analysis.

Edelweiss Ltd has better Portfolio Management services than Other Companies

It keeps its process more transparent.

It gives more returns to its investors.

It charges are less than other portfolio Management Services

It provides daily updates about the stocks information.

Investors are looking for those investment options where they get maximum returns with less returns.

Market is becoming complex & it means that the individual investor will not have the time to play stock game on his own.

People are not so much ware aware about the Investment option available in the Market.

ANNEXURE

QUESTIONNAIRE

NAME: AGE:OCCUPATION: PHONE NO:

1. Do you know about the Investments Option available?a. YESb. NO

2. What is the basic purpose of your Investments?a. Liquidityb. Returnc. Tax Benefitsd. Risk Coveringe. Capital Appreciationf. Others

3. What is the most important factor you consider at the time of Investment?a. Riskb. Returnc. Both

4. From which option you will get the best returns?a. Mutual Fundsb. Sharesc. Commodities Marketd. Bondse. Fixed Depositsf. Propertyg. Others

5. Investing in PMS is far safer than Investing in Mutual Fund. Do you agree?a. Yesb. No

6. How much you carry the expectation in Rise of your Income from Investments?a. Upto 15%b. 15-25%c. 25-35%d. More than 35%

7. If you invested in Share Market, what has been your experience?

a. Satisfactory Returnb. Burned Fingerc. Unsatisfactory Resultsd. No

8. How do you trade in Share Market?a. Hedgingb. Speculationc. Investment

9. How do you manage your Portfolio? a. Selfb. Depends on the company for portfolio

10. If, you trade with Edelweiss Limited then why?a. Researchb. Brokeragec. Servicesd. Investments Tips

11. Are you using Portfolio Management services (PMS) of Edelweiss Limited?a. Yesb. No

12. Which Portfolio Type you preferred?a. Equityb. Debtc. Balanced

13. How was your experience about Portfolio Management services (PMS) of Edelweiss Limited?a. Earnedb. Faced Lossc. No profit No loss

14. Does Edelweiss Limited keep it PMS process Transparent?a. Yesb. No

15. Do you recommend Edelweiss Limited PMS to others?a. Yesb. No

BIBLIOGRAPHY

BIBLIOGRAPHY

MAGAZINE: - Business World WEBSITES:- www.sebi.gov.in www.moneycontrol.com www.karvy.com www.yahoofinance.com www.nseindia.com www.bseindia.com www.indiainfoline.com

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