TRAINING PROJECT

REPORT
ON
“RISK TAKING PATTERN OF DIFFERENT
CUSTOMER”
with special reference to kotak securities

ltd.

A Training Project Report

Submitted in partial fulfillment of the requirement for the
Award of the degree of
Master of Business
Administration
Rajasthan Technical University, Kota (Raj.).
Academic Session 2007-2009

PROJECT GUIDE: SUBMITTED TO:

Ms. Anupama sharma Dikshant Sharma
Faculty ,OKIMR, Kota MBA-II (Marketing)
OKIMR, Kota

OM KOTHARI INSTITUTE OF MANAGEMENT &

RESEARCH, KOTA.
(AFFILIATED TO RAJASTHAN TECHNICAL UNIVERSITY, KOTA)

1
 OM KOTHARI INSTITUTE OF
MANAGEMENT &
RESEARCH
(Affiliated to Rajasthan Technical University, Kota, Approved by All
India Council for Technical Education-Government of India and
Sponsored by Om Kothari Foundation, Kota)

CERTIFICATE

Om Kothari Institute of Management and Research has completed

Training Project Report entitled “RISK TAKING PATTERN OF
DIFFERENT CUSTOMER”. The project has been completed after studying
for one year in MBA course and for partially fulfilling the requirements for
award of degree of Master of Business Administration of Rajasthan Technical
University, Kota.

The Training Project Report has been completed under the guidance of “Asst.
Prof Anupama Sharma This is to certify that Mr. Dikshant Sharma a
student of MBA II Year at” of OKIMR and is as per norms and guidelines
provided.

Dr. K.C. Shringi Asst. Prof. Anupama Sharma

Director Academic Guide

Kota

2
Date:

A-1, Special I.P.I.A. Jhalawar Road, Kota-324005

(: 0744-2490878, 2490402, E-mail: oki_mr@rediffmail.com
Fax: 0744-2438069

OM KOTHARI INSTITUTE OF
MANAGEMENT &
RESEARCH
(Affiliated to Rajasthan Technical University, Kota, Approved by All
India Council for Technical Education-Government of India and
Sponsored by Om Kothari Foundation, Kota)

CERTIFICATE

This is to certify that Mr.Dikshant Sharma student of MBA II Year at Om

Kothari Institute of Management and Research has submitted Training
Project Report entitled “RISK TAKING PATTERN OF DIFFERENT
CUSTOMER ”. The project has been completed after studying for one year
in MBA course and for partially fulfilling the requirements for award of
degree of Master of Business Administration of Rajasthan Technical
University, Kota.

The Training Project Report has been evaluated and viva-voce conducted by
the undersigned panel of examiners. The project has been found
satisfactory/unsatisfactory and is recommended/not recommended for
acceptance.

Prof. Prof.
Internal Examiner External examiner

3
 A-1, Special I.P.I.A. Jhalawar Road, Kota-324005
(: 0744-2490878, 2490402, E-mail: oki_mr@rediffmail.com
Fax: 0744-2438069

PREFACE

Masters of Business Administration (MBA), one of the most reputed

professional courses includes both theory and practical as a part of two-year
programme.

In this course each student is required to undergo practical Summer Training

in an organization of repute. Summer Training is an exercise by means of
which student learn many things, which cannot be taught in classroom

During summer training students understand the real Modus Operandi of the
concerned areas of interest in the real life situation.

The summer training process is endeavourer to convert all that is virtual into a
real image i.e. it helps in applying all the theoretical concepts into real
corporate world.

4
It helps in developing the managerial skill using, which we can convert,
abstract into language and convey the thoughts and ideas from our mind to
others.

In this regard I have undergone Summer Training of 45 days at the renowned and
prestigious Kotak Securities, the subsidiary company of Kotak Mahindra Group

ACKNOWLEDGEMENT

The reporter of this project is grateful for the comments, suggestion, and
assistance given by a number of people. In particular I would like to thank, Mr.
Dheeraj Purohit (Regional Head), Mr. Rajendra Sharma (Branch Head) that he
always holds a lamp for me and I have done my summer internship under the
light of that lamp.

And one more name is there. Who is the real director of this movie, which I
have completed in these two months? The name is Mr. Praveen Singh
(Company guide).

I would like to say thanks by heart to Ms Anupama sharma my respected

Faculty guide for their invaluable guidance.

I was quite fortunate to get this project since I got an opportunity to do my

summer internship in the subsidiary of India’s leading financial Institution –
Kotak Mahindra.

5
As I have completed my internship in Kotak Securities Ltd. Which is the
India’s leading broking house and there I have got good and positive support
from each and every employee of the group.

Finally I would like to say thanks to all those who helped me directly or
indirectly………THANKS.

DECLARATION

I Dikshant Sharma an MBA student of OKIM&R, KOTA do hereby

solemnly declare that present report entitled “RISK TAKING PATTERN
OF DIFFERENT CUSTOM” is based on my original work and the
reference from other work / publication taken after permission are duly
acknowledgment at relevant places.

DIKSHANT SHARMA
MBA-II (SEM-III)
OKIM&R KOTA

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List of Tables:

Chart of Employed / Self-Employed people.

Chart of Businessman people.

Chart of Other customers.

List of Figures:

Regularity of investing in share market.

What makes a customer trade in shares?

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 Comprehensive features of kotak securities ltd.

Safest market according to customers of kotak.

Average time period of holding securities.

Tips of kotak – Effective or not.

List of Charts:

Process of Dematerialization of securities.

Process of Rematerialization of Securities.

REPORT FLOW

Certificate
Preface
Acknowledgement
Declaration
List of Tables, Figures & Charts

Chapter.1 Company Profile: Organization at a Glance

Genesis
Overview

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 Kotak – Group structure
Brand & Logo
Vision
Milestones – Journey so far
Think Investment Think Kotak – Kotak advantages
Kotak Securities – Leadership in Indian Markets
Products and Services – Kotak Securities
Demat account and its facilities
Facilities offered in a Demat Account
Dematerialization of Securities
Rematerialization of Securities
Benefits of opening Demat Account
Advantages of Scrip-Less Trading
Convenient Process of Transmission
About Customers
• About Competitors of Kotak Securities Ltd
• SWOT analysis of Kotak Securities Ltd.

Chapter 2. Project Profile: Introduction

Risk
Non-Diversifiable Risk
Diversifiable Risk

Chapter 3. Objective of the study

Chapter 4. Research methodology

Sampling size

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 Sampling unit
Research procedure
Limitation

Chapter 5. Data Presentation

Analysis and Interpretation

Chapter 6. Finding and Conclusion

From the data of Employed / Self Employed People
Mantra of getting business from Employed / Self Employed People
From the data of Businessman
Mantra of getting business from Businessman
From the data of other Customers
Mantra of getting business from other Customers
General Conclusion

Chapter 7. Recommendation

References and Bibliography

Appendix: questionnaire

10
ORGANIZATION AT A GLANCE

Genesis of Kotak:

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When I first visited the USA many years ago, I was fascinated by the
imposing presence of financial giants such as JP Morgan, Goldman Sachs,
Merrill Lunch and Morgan Stanley.

They started Small, took their names from their founders and went to become
global financial institutions that far outlived the founders.

I believed then, as I do now, that one day, India and Indian Financial
Institutions would have their place in the sun.

Kotak Mahindra was born out of this belief.

- Uday Kotak

OVERVIEW

About Kotak Mahindra Group:

Kotak Mahindra is one of India’s leading financial conglomerates, offering
wide range of financial services that encompass every sphere of life, from
commercial banking, to car finance, to stock broking, to mutual funds, to life

12
insurance, to investment banking, the group caters to the financial needs of
individuals and corporates.

The group has a net worth of over Rs.34 billion, employs over 12,300 people
in its various businesses and has a distribution network of branches,
franchisees, representative offices and satellite offices across 320 cities and
towns in India and offices in New York, London, Dubai, Mauritius and
Singapore.

About Kotak Securities Ltd.:

Kotak Securities Ltd. is the INDIA’S LEADING STOCK BROKING HOUSE,
which allows investor to invest in Equity, Derivatives (Futures and Options),
Mutual funds, IPO’s Margin Trading, Depository Services and other financial
products.

Kotak securities Ltd.is a subsidiary company of Kotak mahindra group.

Its nationwide presence is reflected by a strong retail distribution network that
spans india’s top 277 cities with 167 branches, 900 sub-brokers & over
20,000 coordinators. This facilitates process over two lakh secondary market
trades everyday with help of 3,15,000 customer.

Kotak – Group Structure

13
BRAND & LOGO

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The symbol of Infinite Ka reflects our global Indian personality.

The Ka is uniquely Indian while its curve forms the infinity sign, which is
universal.

One of the basic tenets of economics is that man’s needs are unlimited.

The Infinite Ka symbolizes that we have an Infinite number of ways to meet

those needs.

VISION

Kotak Group wants to be:

15
 A globally Indian financial services brand.

One of the most trusted financial service company.

The most preferred employer in financial services.

MILESTONES – A Journey so far

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Think Investment Think Kotak

 Two decades of experience in financial services.

 Complete range of financial products and services.

Kotak Securities Ltd. Advantages:

An enviable financial service company.

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 Flat hierarchy and easy accessibility to senior management.
Young and energetic workforce.
Strong emphasis on learning and development.

What so unique about Kotak securities Ltd.???

A Unique account that gives investor:
Convenience: The account integrates investor’s banking, broking and demat
accounts. This enables investor to trade in shares.

Centralized Risk Management: At Kotak Securities Ltd. Risk management team

comprises 30 members who have implemented systems in different areas and
structured the Risk management cell primarily managing online risk, Market risk
and Operational risk.
Centralized Back Office: To handle large operations most broking firms worked
with decentralized back offices, Kotak the ones to set a trend of a centralized back
office in Mumbai, which has a work force over 500 dedicated people.

Trust: Kotak Securities Ltd. comes to the investor from Kotak Mahindra Group
the organization trusted by millions of Indian

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LEADERSHIP IN INDIAN MARKET

Kotak Securities Ltd. is India's leading stock broking house with a market
share over 9 % as on 30th June 2007. Kotak Securities Ltd. has been the
largest in IPO distribution.

The accolades that Kotak Securities has been graced with include:

# 1 Book runner/ Lead Manager in terms of value of Indian

equity offerings (PRIME Database) 2006, 2005, 2004, 2003

Euro money Award (2006 & 2007) - Best Provider of

Portfolio Management: Equities.

Best Equity House in India: 2006, 2005, 2004, 2002-2003

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 Best Domestic Equity house: 2004, 2002-2003

IFR Asia's India Equity House Award for the year 2004.

Best Broker - Kotak Securities: 2005

Best Domestic Investment Bank and the Best Equity House: 2006

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 PRODUCTS AND SERVICES

A product for every need: Kotak Securities Ltd. is the INDIA’S LEADING
STOCK BROKING HOUSE, which allows investor to invest in Equity,
Derivatives (Futures and Options), Mutual funds, IPO’s Margin Trading,
Depository Services and other financial products.

1. Equiy:

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: To help you invest in your dream stocks, Kotak Securities
Ltd. brings to you Margin Trading facility of up to 50%*. In other words, you
can buy scrip’s by paying a part of the total sum, while the balance will be
funded by Kotak Securities.

2. Derivatives:

Constant risks have stimulated market participants to manage their risks

through various risk management tools. Derivative is one such risk
management tool. Kotak Securities offers you insight into the world of
derivatives, enabling you to cope with market volatility.

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3. Mutual Funds:

Kotak Securities offers a wealth of mutual fund choices along with

competitive research and advice to help you invest wisely.

4. IPO’s:

Kotak Securities enables clients to invest wisely in the potential and lucrative
IPO’s.

5. Depository Services:

Kotak Securities is a corporate member of NSE and BSE, and depository

participant with NSDL and CDSL. Even as a non-trading member client can
open a Demat account with Kotak Securities and receive regular account
reports and an efficient service at all times.

6. Leading through Research:

Kotak Securities has a strong research team that is involved in macro-

economic studies, and industry and company specific equity research.
Research from Kotak Securities constantly helps investors take informed
investment decisions.

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 DEMAT ACCOUNT AND ITS FACILITIES

Since the inception of the new system of electronic scripless

trading, if a investor wants to avail all the depository services offered by the
depository, he/she is required to open a demat account with a depository
through a DP.

This demat account is very much similar to saving/current account of a bank,

with the only difference being that it deals with securities in electronic form
and not in money.

At the time of opening an account, the investor has to sign an agreement with
the DP in the depository’s prescribed standard agreement, which details the
rights and duties of both the investor and the DP.

For this purpose, the investor has to submit a proof of identity and proof of
address along with the prescribed account opening form.

There is no restriction on the number of DPs an investor can open an account

with, but the account should be opened in the same ownership pattern in
which the securities are held in physical form.

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FACILITIES OFFERED IN A DEMAT ACCOUNT

Dematerialization of securities:

“Dematerialization” is the process by which physical certificates of an

investor are converted to an equivalent number of securities in electronic form
and credited in the investor’s account with its DP.

In order to dematerialize certificates, an investor will have to first open an

account with a DP and then request for the dematerialization of certificates by
filling up a Dematerialization Request Form (DRF), which is available with a
Dp and submit the same along with the physical certificates.

The investor has to ensure that before the certificates are handed over
to the DP for demat, they are defaced by marking “Surrendered for
Dematerialization” on the face of the certificates. After this, the registrar of
the companies takes the existing physical certificates of the investor back and
destroy them and an equivalent number of securities are credited in electronic
form in investor’s demat account.

Similarly, when an investor buys or is issued new securities, he/she will

not get physical share to confirm proof of ownership but only a confirmation
receipt as proof of ownership and his/her shares get credited in an electronic
form in his/her demat account.

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 Process of Dematerialization:

 Submit a formal request for dematerialization on a DRF along with

duly cancelled “Surrendered for Demat” share certificates.

 The DP verifies the signature of all account holders and the order of the
names in the demat account and the certificates to ensure that the
pattern of holding is same.

 It later processes the certificates and forwards them to the

Registrar/company.

 The Registrar or the Company receives and processes these certificates,

i.e., checks and verifies the records

 On electronic confirmation from the company, the depository credits

the investor’s demat account and intimate it to the DP.

Once the investor gets a credit in the account, the scrip will be reflected as
free balance in his/her demat account statement.

25
 Dematerialization Process

Investor

Demat request form and

Share certificate

Depository Participant
Intima
tes to

Demat Request Forwarded Demat Request Credit the

Demat securities

Registrar and Transfer

Agent

Depository

Checks and verifies the record

If in order Electronic
Confirmation

26
 Rematerialization of Securities:

‘Rematerialization’ is the term used for converting electronic holdings back

into physical paper share certificates. If an investor wishes to get back his/her
securities in physical form, all he/she has to do is to request his/her DP for
rematerialization of the same. The DP will forward his/her request to NSDL,
after verifying that for the necessary balance. NSDL in turn will intimate the
registrar who will print the certificates and dispatch the same to you.

Process of Rematerialization

 Submit a formal request for rematerialization on a Remat Form duly

signed by all account holders to the depository.

 The DP will intimate the remat request to the depository after proper
verification and checking.

 The depository will confirm this remat request and finally forward its
details to the Registrar.

 The Registrar will update its records and will print and issue a new
scrip certificate.

 The Registrar then forwards it to the shareholder’s address as given in

the account Demat Account opening form.

27
 Rematerialization Process

Investor

Submits request for

Rematerialization

Depository Participant
Certificates
Dispatching

Remat Request Intimated

Updating Records and
Printing Scrip
Certificates

Depository

Registrar

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 Confirmation of Remat Request

BENEFITS OF OPENING A DEMAT ACCOUNT

• Demat account has become a necessity for all categories of investors

for the following reasons/ benefits:

• SEBI has made it compulsory for trades in almost all scrips to be

settled in demat mode. Although, trades up to 500 shares can be settled
in physical form, physical settlement is virtually not taking place for
the apprehension of bad delivery on account of mismatch of signatures,
forgery of signatures, fake certificates, etc.

• It is a safe and convenient way to hold securities compared to holding

securities in physical form.

• No stamp duty is levied on transfer of securities held in demat form.

• Instantaneous transfer of securities enhances liquidity.

• It eliminates delays, thefts, interceptions and subsequent misuse of

certificates.

• Change of name, address, registration of power of attorney, deletion of

deceased's name, etc. - can be effected across companies by one single
instruction to the DP.

29
• Any number of securities can be transferred/delivered with one delivery
order. Therefore, paperwork and signing of multiple transfer forms is
done away with.

• Each share is a market lot for the purpose of transactions - so no odd lot
problem.

• It facilitates taking advances against securities on low margin/low

interest

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 ADVANTAGES OF SCRIP-LESS TRADING

 It provides for protection against loss, theft, forgery or mutilation of

share certificates in transit.

 It provides protection against bad deliveries and likelihood of fake

certificates in the market.

 It results in immediate transfer and registration of securities in an

electronic form.

 Shorter settlement period especially after introduction of T+2 system

w.e.f. April 1,2003.

 There is no need to pay any stamp duties as required in case of physical

transfer of shares.

 Faster disbursement of non- cash corporate benefits like rights, bonus

etc.

 Reduction of brokerage by many brokers for trading in dematerialized.

 Reduction of handling huge volume of papers.

 Investors need to maintain only a single account for all types of

securities.

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 CONVENIENT PROCESS OF TRANSMISSION.

 Elimination of problems related to selling securities on behalf of a

minor.

 Ease in portfolio monitoring

 Indemnification of certain losses.

 Costs are reduced substantially are compared to the highly expensive

paper-based trading

 Shareholders can buy or sell just one share and not market lots.

 Problems or hurdles in providing Depository Services

 Hidden cost like opening of a current saving account with DP.

 Exposure to DP charges for custody or administration

 Custody charges are annual recurring feature.

 Risk of failure or fraud by the broker administering the account.

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 Proper infrastructural facilities are not available.

• Millions of small investors are spread across remote villages where

DPs are not accessible.

 Sometimes the system may be time consuming.

 Wrong DP ID entered by the brokers or investors.

 Companies may reject the request due to a signature mismatch.

 Effective loss of name on register, and rights as a member of a

company.

 A DP handling the account and a broker selling the shares are two
different identities.

 Inability to trade a holding via any brokers other than the broker
administering the account.

 Exit fees and other barriers to transferring holdings away from a D

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 CUSTOMER

Kotak Securities Ltd. a leading stock broking house of India is working as per
the guidelines provided by the SEBI (security exchange board of India) where
in any body can open a demat account but he/ she should have PAN card
which is being issued by the INCOME TAX DEPARTMENT of India.

Although this is being come into existence by this year but Kotak Securities
Ltd. is the only company, which is following it strictly.

This is the tradition at Kotak Securities Ltd. that they are walking only and
strictly on the way, which is being set by the authorities.

Kotak Securities Ltd. is mainly known with Kotak Mahindra group and this is
the second largest bank of India.

If we talk about kota where I am working here Kotak Securities Ltd. is

working from last few months but the customer base we are acquiring is kind
of threat for the online brokers because they are now loosing their position.
People are taking transfer from online to offline share trading and Kotak
Securities Ltd. is the only popular name in offline share trading.

In Kota mainly the people from big corporate are the regular customer of
Kotak Securities Ltd.

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Kota is emerging as one of the biggest science institute’s hub of India where
in the people who are working in these institutes have great amount to invest.
COMPETITOR’S

Kotak Securities Ltd. is an offline share-trading firm, which is mainly

competing with the online broker’s because in Kota online brokers are
working from last few decades and they have strongly captured the market of
Kota. They were strong just because of mentality of Kota people as well as
the infrastructure available for trading but the scenario is changing day by
day.

Presently a number of terminals are working in Kota and the people

wants to join the Kotak Mahindra group.

This is not the thing which makes worry (Kotak Securities) Kota. But
the thing, which is kind of, threats for the Kotak Securities Ltd. Kota
especially that is the brokerage criteria. Because we have a fix criteria of
brokerage where in broker’s negotiates according to the customer this is what
I feel after spending almost one and half month in Kotak Securities Ltd.

For this we are targeting the premium customer’s and making them aware of
offline as well as giving them information about IPO scam which is being
happened a month before. And this is the right thing to do at this time because
except Kotak Securities Ltd. every body is under scrutiny although many of
them got the clean chit. But still we can use it as a competitive strategy.

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MAJOR COMPETITORS OF KOTAK SECURITIES

ICICI direct.com

Share khan

Karvy Broking

Suresh rathi

Anand rathi

Nirmal bang

Bonanza Online

Religare

Zuari Investment

India Infoline

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 SWOT ANALYSIS OF KOTAK SECURITIES LTD.

STRENGTHS:
• Credibility of Kotak Mahindra group in market.
• Loyal and lasting customer relationship.
• Wide Marketing network consisting Rawatbhata, Bundi, Baran and Kota
itself.
• Features of our products and services
• Quality of product is up to global standards.
• Strategic thinking.
• Global thinking and acting.

WEAKNESS:
• High dependency on corporate customers.
• Lack of manpower as far as NST is concerned.
• Lack of sales promotion schemes.
• Kotak Securities Online.

OPPURTUNITY:
 Sensex is doing well now days.
 DLF is about to come with its IPO and that will be the biggest IPO till now
and IPO is real strength.
 Kotak Mahindra is the associate bank of DLF.

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THREAT:
 Entry of R-TRADE in market.
 Sensex is affecting by a number of activities other than business

38
 INTRODUCTION OF THE PROJECT TITLE

This project is related to the risk taking abilities or habits of different customer’s.
And I have done this research in the city like Kota. Kota is having customer with
all types. The member’s from each group is interested in share trading this is what
I have felt after completing the summer internship consisting of four months.

Before joining Kotak Securities Ltd., I personally feel that this product is only and
only for those who have great knowledge about Share market and mainly about
offline trading. But scenario is quite a bit different from what I felt.

My project is having a clear goal like I have tried to find out the habits of taking
risk of customer’s. This thing will surely helps Kotak Securities Ltd. Kota in
finding the new customer’s. This project will make easy the targeting activity.

The problem, which Kotak Securities Ltd. is facing, that they are not targeting
customers with an idea. Because they don’t have any base data which tells them on
what time which type of customer should be targeted by them?

The conclusion of this project will provide a data and that data will help web trade
Kota in planning the things. I have done this project mainly in the reference of
Kota so this data will only and only help in capturing the Kota market.

39
The problem of targeting customer with right time and right place is being
occurred because the market of Kota is changing day by day according to sensex.

If we talk about competition in Kota it is on its peek and mainly the competition is
between the online broker’s and in offline share trading companies.

Many people having their demat account in the depository of offline broker’s
(Anandrathi, Anagram, and Zuari) & online brokers (Reliance Money, ICICI).

Now conclusion of this project can provide an idea of targeting.

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 RISK

One cannot talk about returns without talking about risk, because investment
decisions always involve a trade-off between risk and return.

Risk can define as the chance that the actual outcome from an investment
will differ from the expected outcome.

Being an investor or trader a person always have two type of risk that is as
follows.

 Non –diversifiable risk:

 Major changes in tax rates.
 War & other calamities.
 An increase or decrease in inflation rates.
 A change in economic policy.
 Industrial recession.
 An increase in international oil prices, etc.

 Diversifiable risk:
• Company strike.
• Bankruptcy of a major supplier.
• Death of a key company officer.

41
• Unexpected entry of a new competitor.

OBJECTIVE OF THE STUDY

 To know the effectiveness of tips of kotak securities ltd which are given to
customer.

 To know the average holding period of securities for the customer of kotak
securities ltd.

 To estimate the risk taking pattern of the customer’s.

 To know safest market according to customer.

 To know about regular investor/trader of share market.

 To know the comprehensive features of Kotak Securities Ltd.

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Meaning of Research

Research in common parlance refers to a search for knowledge.

“A careful investigation or enquiry especially through search for new facts in
any branch of knowledge.”
Advance Learner’s Dictionary of current English

“Research comprises defining and redefining problems , formulating

hypothesis or suggested solutions; collecting , organizing and evaluating
data; making deduction and reaching conclusion and at least carefully testing
the conclusions and to determine whether they fit the formulating
hypothesis.”
Clifford Woody

• RESEARCH PURPOSE

 The project aims to find the ‘Risk taking pattern of different customer’.
The pattern was surveyed for the following people:
• Employed people.

43
 • Business man.
• Other people.

Research methodology

Research methodology is a way to systematically solve the research problem.

It may be understood as a science of studying how research is done
scientifically, Researchers need to know which of the methods or techniques,
are relevant and which are not ,and what would they mean and indicate and
why. Researcher also need to understand the assumption underlying various
techniques and they need to know the criteria by which they can decide that
certain techniques and procedures will be applicable to certain problems and
others will not .
 Sampling Unit.
 Sample Size.
 Research Procedure.
 Data collection.

Sampling Unit

A decision has to be taken concerning a sampling unit before selecting

sample. Sampling unit may be geographical one such as state, district, village
etc., or a construction unit such as house, flat etc., or it may be a social unit
such as family club, school etc., or it may be an individual. The researcher
will have to decide one or more of such units that he has to select for his
study.

44
This project is mainly based on primary data, which I have collected through
questionnaires. As this questionnaire is the way of knowing the risk taking pattern of
the existing customer of Kotak Securities Ltd .

Sampling Size
 Sample size, which I have decided that is 100 customers for this project.

Research Procedure
 Firstly I have collected the list of existing customers of Kotak Securities Ltd.
Kota and than I have started the activity of spreading questionnaires to those
customers.

• Data Collection
 The data was collected by the questionnaire method. A questionnaire was
prepared which consisted of 6 questions to be filled by the customer.

45
 LIMITATIONS OF THE STUDY

oLimited sample size of Kotak securities customers.

oLimited data.

oData discrepancies.

oDifferent scales for different parameters.

oEntire process of project calculation may not be exact – averages of

averages.

46
 DATA PRESENTATION & INTERPRETATION

1. People are regular investor / trader of share market?

REGULARITY OF INVESTING IN
SHARE MARKET

YES NO

Interpretation:
 37 % Regular investor / trader.
 63 % People are Irregular investor / trader.

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2. What makes influence people to trade in share market where uncertainty on its
peek?

WHAT MAKES A CUSTOMER TRADE

IN SHARES
NO. OF PEOPLE

150
100 100

50
0 0 0
PROFITABILTY PASSION PRESTIGIOUS

Interpretation:

 100 % People Trade For Share Only For Profitability, not for passion or
Prestigious.

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3. Liking of people in these comprehensive features of Kotak Securities Ltd

Comprehensive features of
Kotak Securities Ltd.

19% Equity trading

IPO
21% 60%
Mutual Fund

Interpretation:
 60 % of Customers are Interested In Equity trading with Kotak Securities.
 21 % of Customers are Interested In Mutual Funds with Kotak Securities.
 19 % of Customers are Interested In IPO’s with Kotak Securities.

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4. Safest market according to customer’s of Kotak Securities Ltd.

p e rc e n ta g e

se c o n d a r y 46
Share markets

p rim a ry 54

40 45 50 55
p e r c e n ta g e

Interpretation:
 54 % of People Says that Primary market is the safest market with Kotak
Securities.
 46 % of People Says that Secondary market is the safest market with Kotak
Securities.

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5. Average holdings period of securities for the customers of Kotak Securities Ltd.

average time period of holdings

30< da ys 46
Days

10-30 da ys 41

5-10 da ys 13

Interpretation:
 13 % People hold the securities for 5-10 days.
 41 % People hold the securities for 10-30 days.
 46% People hold the securities for more than 30 days.

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6. Tips available on Kotak Securities Ltd. are how much effective as far as risk
taking ability is concerned of the investor / trader are they able to change their risk
taking ability?

Tips of Kotak Securities Ltd. are effective or not

Yes
44%
56% No

Interpretation:
 56 % people say that tips are effective.
 44 % people say that the tips are not effective.

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 FINDING & CONCLUSION

The data I have collected have a number and the number is one hundred.

 Employed/self employed -30

 Businessman -18 TOTAL 100
 Others -52

The basic idea, which my project had that as, follows.

 I have to find out the risk taking pattern of the different age group.

 I have to find out the risk taking pattern of the person of the different
occupations.

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 EMPLOYED SELF EMPLOYED PEOPLE

AGE GROUP 20-30 30-50 50 <

REGULARITY OF THE Regular investor 5 14 3
INVESTORS Irregular investor 2 5 1
WHY THEY ARE DOING
SHARE TRADING Profitability 7 19 4
Equity trading 6 15 3
FEATURE OF INVESTOR Mutual fund 0 2 1
LIKE MOST IPO 1 2 0
Primary 7 10 3
SAFEST SHARE MARKET Secondary 0 9 1
5-10 days 4 9 0
AVERAGE HOLDING 10-30 days 2 8 0
PERIOD OF INVESTOR 30< days 1 2 4

CONCLUSION FROM THE DATA OF EMPLOYED PEOPLE

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 I have collected data of 100 people out of that 30 are employed and
surprisingly 22 are the regular trader of the share market. Now the general age,
which we find of an employed person, is below 50.now regularity of doing share
trading is a complete showcase of targeting them when they are entering into job.

 Kotak Securities Ltd. is a famous name in the corporate and the people of big
corporate like our portal just because they have great knowledge of share market.

 In Kota there are not so much companies have there setup but still most of the
companies are about to come like Reliance Fresh, Reliance Retail, and SAMCOR is
also about to setup it’s one more unit in Kota. So there is ample of opportunity of
getting business from employed people.

 Most of the Employed people believe in equity trading rather than in mutual
fund or IPO’S.

 All 30 people are interested towards share market because they want to earn
something, which can give additional income nothing else.
 Most of them believe in the rotation of money. Out of 30 people 24 have the
average time period of their holdings below 30 days.

BUSINESSMAN

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 AGE GROUP 20-30 30-50 50 <
REGULARITY OF THE Regular investor 7 4 2
INVESTORS Irregular investor 1 3 1
WHY THEY ARE DOING
SHARE TRADING Profitability 8 7 3
Equity trading 6 4 1
FEATURE OF INVESTOR Mutual fund 1 2 2
LIKE MOST IPO 1 1 0
Primary 5 6 1
SAFEST SHARE MARKET Secondary 3 1 2
5-10 days 0 0 0
AVERAGE HOLDING 10-30 days 5 2 0
PERIOD OF INVESTOR 30< days 3 5 3

CONCLUSION FROM THE DATA OF BUSINESSMAN

 As I come to know that out of 18 people 13 are the regular trader of share
market and it is an about 72%. It is showing that businessman who is with, Kotak
Securities Ltd. doing share trading so much.

56
 Most of them like to trade in equity because of pricing trend, technical
analysis and other information in research section makes or influences their
decision.

 70% of them feel that primary market is the only market, which is quite safe
as far as investment is concerned.

 Their average holding time is above 30 days and this clearly shows that they
believe in investing rather than in trading.

OTHER CUSTOMERS

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 AGE GROUP 20-30 30-50 50 <
REGULARITY OF THE Regular investor 0 2 0
INVESTORS Irregular investor 20 17 13
WHY THEY ARE DOING
SHARE TRADING Profitability 20 19 13
Equity trading 17 5 3
FEATURE OF INVESTOR Mutual fund 0 6 7
LIKE MOST IPO 3 8 3
Primary 8 6 6
SAFEST SHARE MARKET Secondary 12 13 7
5-10 days 0 0 0
AVERAGE HOLDING 10-30 days 5 11 8
PERIOD OF INVESTOR 30< days 15 8 5

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CONCLUSION FROM THE DATA OF OTHER CUSTOMER’S

• Others consist of the Housewife, Retired personnel and many

more.

• Only 2 people out of 52 are regular trader of share market.

• An about 15 are interested in investing Mutual Funds.

• 13 are those who only like to invest in IPO’S just because

they don’t have market knowledge and they invest in IPO’S just because of
they want to invest somewhere and they want to check their luck nothing else.

• Another thing which comes out after doing research that on

the behalf of them their relatives are investing.

• This is showing that they only have their name with

Depository.

59
 CONCLUSION

General Conclusion

 As this data is showing that most of the people are not regular investor/trader
of the share market only 37% people have the habit of doing share trading on daily
basis. The basic reason behind not doing share trading on daily basis is not having
complete market watch which is quite necessary for trading.

 The people who are doing share trading on daily basis are having some
different ideas in their mind like they have selected company on sector basis. Top
three company of that particular sector are in their portfolio.

 This we know that if one has selected companies on ranking basis of that
sector. There are very less chances of not performing well of each sector so trader
always have a 50-50 ratio in his portfolio.

 Another which is really very interesting that sensex is also dependent on most
of these companies so if there is any movement in sensex will definitely effect the
companies share value in the market and by this way a trader can survive in the

60
market and if a person is able to survive than only he can book profit from the
market.

 Behind share trading there is only single idea in customer mind is to book
profit this I have come to know through questionnaire where I have given two more
option like is this passion, prestigious thing which is influencing you surprisingly all
the people have only single idea that is profitability…

 Out of 100 people more than 60% people are interested in equity trading just
because of easy and prompt liquidity.

 As most of the people are interested in equity trading and another side they
are feeling that safest market is primary rather than secondary because of the people
who are investing in primary market have there different segment because they don't
have so much of market knowledge and mainly they are the one who is emerging
player in this market or the one who wants to invest his money somewhere. There is
huge difference in investment and trading and trader always have high risk but he is
the one who is always having high profit.

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 Equity trading can be a profitable instrument when traders have the capacity
of holdings the securities for a very long period. Findings are showing that an about
46% people have there average time period of there holdings is more than a month.

RECOMMENDATION

MANTRA OF GETTING BUSINESS FROM EMPLOYED PEOPLE

 As I come to know through questionnaires that the employed people are our
most important and profitable customer’s so Kotak Securities Ltd. Kota has to start
giving presentations in corporate on regular basis.

 Regular portfolio management by the experts because they want something

which help them in booking profit. This is not an easy task. But this is not
impossible activity also and Kotak Securities Ltd. should also have some experts in
a particular region and those experts organize portfolio and make whole market
watch or sector wise and this is the only thing, which will make kotaksecurities.com
unique in real sense.

 There should not be any misconception related to services in the mind set of
the customer because this can be a barrier of getting further business from them.
Their problem has to be solved immediately by Kotak Securities Ltd.

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 MANTRA OF GETTING BUSINESS FROM A BUSINESSMAN

 Equity trading is the thing which a businessman like most regular share
trading add an edge to this.

 Most of the businessman of Kota city are not as much educated as they should
be so for them we have to organize presentations which will be totally based on
Research because they all have their demat account but at broker where they have to
say what to sell and what to purchase and on when. That’s all

 Providing better services and make them confident that they can also do this
by their hand is only thing which can help Kotak Securities Ltd. Kota to grape the
further business from them.

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 MANTRA OF GETTING BUSINESS FROM OTHER CUSTOMERS

 As they don’t invest directly so there will be only one thing of covering them
is (investment in Mutual Funds or IPO’s) means whenever the new MF or IPO
comes in market, which can give them a safety of their money according to their
portfolio.

 Kotak Securities Ltd. Kota has to Target these retired personnel mainly when
IPO’s comes in market otherwise getting cross sell is the only source of sales.

64
 REFERENCES & BIBLIOGRAPHY

Books:
Bhalla V.K.: Investment Management; Security Analysis and portfolio
Management, S.Chand & Company Ltd., New Delhi.
Kotler Philip, Keller Kevin Lane: Marketing Management, Dorling
Kindersley (I) Pvt. Ltd. New Delhi, 2007.
Kothari C.R.: Research Metholodgy, New Age International (P) Ltd., New
Delhi, 2005.
“Project Management” By P. Chandra.
“Financial Management” By P. Chandra.

Websites:
www.kotak.com
www.kotaksecurities.com
www.nseindia.com
www.prakashgabba.com

Research Reports, Magazines, Newspapers & Other Literature:

Research Reports of Kotak securities: month of May, June & July, 2007
Outlook Money
Dalaal Street
Economic Times

65
NSE Publications
SEBI Guidelines
NCFM Study Material

Annexure

Questionnaire for Investors perception

SURVEY ON INVESTORS PERCEPTION IN EQUITY

MARKET

“Questionnaire for investors”

NAME AGE
ADDRESS
PHONE NO. MOBILE
NO.
OCCUPATION GENDER

Income
(a) Less than 10000 (b) 10000 - 20000

(c) 20000-30000 (d) More than 30000

Profession

66
(a) Service
(b) Business
(c) Others

Q1. Are you a regular investor / trader of share market?

(a) Yes (b) No

Q2. What makes influence you to trade in share market?

(a) Profitability
(b) Prestigious
(c) Passion

Q3. In which feature of kotak securities you have invested your

money?
(a) Equity trading
(b) IPO
(c) Mutual funds

Q4. Which market is the safest market with kotak in your opinion?
(a) Primary market

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(b) Secondary market

Q5. If you have invested in equity then what is your average

holding period of securities?
(a) 5 to 10 days
(b) 10 to 30 days
(c) More than 30 days

Q6. What you have felt that the research tips available with kotak
securities are?
(a) Effective
(b) Not effective

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