Synopsis Tejash

7/28/2019 Synopsis Tejash

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SYNOPSIS:

COMPANY PROFILE

5paisa is the trade name of the India Info Line securities private

limited, a wholly owned subsidiary of India Info Line ltd. 5paisa holdsmembership of both the leading stock exchange of India viz. the Bombay

Stock Exchange (BSE) and National Stock Exchange (NSE) and is also a

depository participant with NSDL and CDSL. It has tied up with the leading

banks for funds transfer facilities Viz. City Bank, Centurion Bank, ICICI

Bank and UTI Bank. The group has a membership of a Multi Commodities

Exchange (MCX), National Commodities and Derivative Exchange of India

(NCDEX) and the Dubai Gold and Commodities Exchange (DGCX).

India Info Line Ltd was founded in 1995 by a group of professionals

with impeccable educational qualification and professional credentials.

India Info Line is listed on BSE and NSE with a market capitalization of

over $ 150 million.

The India Info Line group, comprising the holding company, the India

Info Line Ltd. And its wholly owned subsidiaries offers the entire gamut of

investment products ranging from Equities and Insurance, Fixed Deposits,

GOI Bonds, Loan Products and other Small Saving Instruments. It also

owns and operates web sites, www.indiainfoline.com and

www.5paisa.com .

The India info Line group has a significance presence across the

country with over 500 branches in over 300 cities across India. All theseoffices are networked and connected with the corporate office in Mumbai.

The 5paisa trading interface is one of the most advanced platforms

available to retail investor in India. The group has membership on BSE

and NSE for equities trading. It has a SEBI license for portfolio


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management under which, various schemes are offered, which have been

continentally beating the benchmark indices since inception.

THE INDIA INFOLINE LTD.

OPERATIONS

This is where the 5paisa subsidiary of the India Info Line group,

comes in. They operate their functions through their domain knowledge

and database on in depth research of complex paradigms of commoditykinetics; offer their customers a unique insight into behavioral patterns of

these markets. Their customers are ideally positioned to make informed

investment decisions with a high probability of success.


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Trading can be online, over the phone or at their branches.

Highly qualified, well-trained relationship managers are available at their

investor points across the country, to help the investor make the best of

commodities trading!

Besides all the above functions, they also leverage their skills in

research, investments in cutting edge technology and understanding of

investors requirements to ensure that their needs are taken care of.

Thus, they perform the function of adding value to the investors money.

1. Mr. Nirmal Jain: Founder and Chairman of INDIA INFO LINELTD.

2. Mr. R.Venkataraman: co-promoter and Executive Director of INDIA INFO LINE LTD.

The Board of Directors

Apart from Nirmal Jain and R Venkataraman, the Board of Directors of

India Info Line comprises:

Mr. Sat Pal Khattar (Non Executive Director)

Mr.Sanjiv Ahuja (Independent Director)

Mr.Nilesh Vikamsey (independent director)

Mr.Kranti Sinha (independent director)


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INTRODUCTION OF THE TOPIC

Equity shares:

Shares: When companies look for money for their business,

they can get it in two ways - either they borrow from a bank or pay

interest ("debt") or they ask people like you and me to invest and give us

shares ("equity"). A share is a part of a business.

A share capital of a company is divided into a number of small

units of equal value is called Shares.

Characteristics:

Equity shareholders are the true owners of the firm or company.

It is a residual form of ownership.

Earnings and assets are considered only after the claim of

government, debenture holders, and preference holders have

been met.

Equity is a permanent form of long term financing because

Equity share has no maturity date.

Advantages:

It has limited liability.

It is potential for profit.

Equity hedge (protect) against the inflation.

The transferability of the shares is free and very easy.

Equity shares have tax advantages to the investors.

Equity shareholders have the voting rights.


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Mutual Fund:

A mutual fund is a pool of investments used to buy a large

portfolio of securities that will be managed by a professional advisor.

When you buy a share in a mutual fund, you effectively buy a bit of each

security held in the fund's portfolio.

The Mutual Fund is the most ideal investment vehicle in todays world

for various reasons. The capital markets including equity shares, bonds and

other fixed income instruments have matured. Also a typical individual does

not have enough knowledge, skills and inclination of the happening event in

the economy, understanding their implication and act speedily.

TYPES OF MUTUAL FUND SCHEMES

Wide varieties of Mutual Fund Schemes exist to cater to the needs

such as financial position, risk tolerance and return expectations etc.


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RESEARCH METHODOLOGY

Problem definition

The present study titled, Comparison between Equity and Mutual Fund

has following objectives. To know the risk involved in investing in Equity and Mutual Fund.

To know which one is better for investors for investment.

To know the investor who invest in Equity and Mutual Fund.

Data collection:

Primary Data :


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Primary data is the data, which is not collected and used by

somebody else. In this project questionnaire has been used to study the

Comparison between Equity and Mutual Fund.

Secondary Data:

Secondary data means the data, which are already collected

and used by some body else. Secondary data has been collected from the

following sources:

India infoline.com

5paisa.com

MF.com

From book- Financial Markets And Financial Services

Geographical Area :

Bilimora city is selected for the study of comparison of

Equity and Mutual Fund, which is better for the people to invest.

Research Design:

Descriptive Analysis:

Descriptive study is used to study the situation. This

study helps to describe the situation. A detail descriptive aboutpresent situation can be found out by the descriptive study. In this

involves the analysis of the situation using the secondary data and

primary data. In this project work secondary data and primary data

are used.


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Limitations of the study

During the project following hurdles are faced.

1) The time is limit for project work and I had only fill up 150

questionnaires.

2) This study was done by me with my limited knowledge.

DATA ANALYSIS AND INTERPRETATION

1. Proportion of awareness and investment in Equity and

Mutual fund.

We can see that most of respondents are aware with Equity and Mutual

Fund i.e. respectively 134 & 144 and out of 150 respondents 64 invest in

Equity & 70 respondents are invest in Mutual Fund.


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2. I prefer Mutual Fund because.

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling

Adequacy..938

Bartlett's Test of

Sphericity

Approx. Chi-

Square2160.110

Df 21

Sig. .000


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Component Matrix(a)

Component

1 2 3

4.1.Easy transferability .972 -7.398E-03 -.177

Communalities

InitialExtractio

n

4.1.Easy transferability 1.000 .977

4.1.High return 1.000 .969

4.1.Tax benefit 1.000 .974

4.1.Professional mgt 1.000 .996

4.1.Low trans. cost 1.000 .983

4.1.Diversification

advantage1.000 .962

4.1.Safety 1.000 .960


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4.1.High return .977 -6.652E-02 -9.651E-02

4.1.Tax benefit .984 -4.610E-02 5.817E-02

4.1.Professional mgt .938 .310 .136

4.1.Low trans. cost .949 -.237 .1614.1.Diversification

advantage.970 6.887E-02 -.124

4.1.Safety .979 -1.611E-02 5.000E-02Rotated Matrix(a)

Component

1 2 3

4.1.Easy transferability .502 .714 .4634.1.High return .581 .654 .451

4.1.Tax benefit .644 .532 .526

4.1.Professional mgt .419 .428 .798

4.1.Low trans. Cost .796 .436 .400

4.1.Diversification

advantage.476 .667 .539

4.1.Safety .617 .534 .542

Interpretation:

We have come to know that from various parameters the customer

have selected but some major parameters which are very essential for

any customers while selecting Mutual Fund as better. So, on the basis of

these parameters the customers choose their preference for investing in

Mutual Fund.

So, here the most important parameters customers

preferred is as under, Cost and safety, diversification and transferability,


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professional management

1 st parameter: - It is handled by Professional management.

2nd

parameter: - Because of low transaction cost they preferMutual Fund.

FINDINGS

Out of 150 respondents 136 are aware of Equity and from that of

150 respondents 64 are invest in it.

Out of 150 respondents 144 are aware of Mutual Fund and from that

of 150 respondents 70 are invest in it.

74 respondents are thinking that Mutual Fund is better for

investment; while 68 respondents prefer Equity for investment.

For preferring to Equity the main reason is Equity has no locking

period.

Respondents want High return so they are not investing in Mutual

Fund.

Respondents are not investing in Equity because of High risk.

For Mutual Fund preference respondents select the main criteria

Tax benefit, Professional Management and Safety andDiversification.


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CONCLUSION

The numbers of respondents are aware with Mutual Fund.

As per preference of Equity and Mutual Fund both are some what in

equal proportion popular.

In terms of getting return from Equity and Mutual Fund they want

high return.

Here, we can also see that the respondents are also not investing in

Equity because of High Risk involved in investing Equity as they

think.


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RECOMMENDATION

Increase the investment proportion of the investor than they are

aware.

Company should have to concentrate on those respondents who are

not investing in Equity because of high risk than convert them in

investing Mutual Fund. And also for those who is not investing in

Mutual Fund for high return convert them investing in Equity.

The respondents who want high return increase their investment

proportion in Equity. So, that they can earn High Return.

From doing Factor Analysis we come t o know that the factor which

influence highly on respondents are as Cost, Safety, Professional

Management, Diversification. So, by doing Advertisement and give

knowledge about it to the respondents who are not investing in

Mutual Fund.


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BIBLIOGRAPHY

Books: Donald R Cooper & Pamela S Schindler, Business Research

Methods , Eighth Edition, Tata McGraw-Hill, New York, 2003.

Gordon & Natrajan, Financial Markets And Services Second

Revised Edition Reprint, Himalaya Publishing House, 2005.

Punithavathy Pandian, Security Analysis & Portfolio Management

Edition, Vikas Publishing Housing Pvt. Ltd, 2007.

Websites:

www.5paisa.com

www.amfi.com

www.indiainfoline.com
http://www.sharekhan.com/http://www.amfi.com/http://www.indiainfoline.com/http://www.sharekhan.com/http://www.amfi.com/http://www.indiainfoline.com/


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