A Study on Consumer Behavior Regarding Investment on Financial Instruments at Karvy Stock Broking Ltd

A STUDY ON

Under the guidance of

Mr. Snehasis Das

Branch Manager

FOR PARTIAL FULFILLMENT OF THE REQUIREMENT OF MBASubmitted To:DDCE, SAMBALPUR UNIVERSITY

Submitted By:

BIJAN KUMAR MOHANTYRoll No: 10MBA706Regd. No: 602/09CONTENT

Certificate Of The Organisation Executive Summary Company Profile Company History Ojt Introduction Review Of Litrature Collection Of Data Methodology Sample Procedure Results Discussion And Conclusion Recommendation Bibliography Appendix

CERTIFICATE BY THE ORGANIZATIONThis is to certify that the Project entitled, A Study On Consumer Behavior Regarding Investment On Financial Instruments At Karvy Stock Broking Ltd. is a genuine Interim report carried out by Bijan Kumar Mohanty, for the partial fulfillment of Master of Business Administration. (Mr. Snehasis Das)

Date: Branch Manager EXAMINERS CERTIFICATE

This project is submitted by Bijan Kumar Mohanty of MBA bearing the Roll No. 10MBA706 under DDCE, Sambalpur University and forwarded for evaluation.

Internal Examiner

External Examiner

CERTIFICATE OF APPROVAL

This is to Certify that the Project Entitled:

A Study On Consumer Behavior Regarding Investment On Financial Instruments At Karvy Stock Broking Ltd.

Submitted by Bijan Kumar Mohanty (Enr. No 602/09), Sambalpur University, Burla towards partial fulfillment of the requirements for the award of the degree of Master of Business Administration (MBA) is a bona fide record of the work carried out by him under the able guidance of Samir Mishra, Faculty, NICE, Talcher.

(Approval of the Center Director)

DECLARATION

I here by declare that this Project Report A Study On Consumer Behavior Regarding Investment On Financial Instruments At Karvy Stock Broking Ltd. is of my own Work. It has been submitted fully or partly to the DDCE, SAMBALPUR UNIVERSITY, for awarding project marks or any other.Bijan Kumar Mohanty CERTIFICATE OF GUIDE

This is to certify that Bijan Kumar Mohanty bearing the Enrollment No. 602/09 is a bonafide student of DDCE, Sambalpur University. He has conducted the project on A Study On Consumer Behavior regarding Investment On Financial Instruments At Karvy Stock Broking Ltd. under my guidance as per the partial fulfillment of the requirement of the degree of M.B.A.

To the best of my knowledge she has work sincerely to being this report.

Samir MishraACKNOWLEDGEMENT

I sincerely thank Mr. Snehasis Das (Preceding Branch Manager), Mr. Niranjan Bal (Branch Manager) and all the staff members of Karvy Stock Broking Ltd for giving me this opportunity to work in the esteemed organization and helping me for completing the project in a successful manner.

My regards to my family member for guiding and support to me. Last but not the least; Im very thankful to DDCE, Sambalpur University for helping me in resolving every issue. My project at Karvy Stock Broking Ltd has been proved to be an enriching experience.

Bijan Kumar MohantyKARVY LTD.

HISTORY OF KARVY The birth of Karvy was on a modest scale in 1981. It began with the vision andenterprise of a small group of practicing Chartered Accountants who founded the flagship company Karvy Consultants Limited. We started with consulting and financial accounting automation, and carved inroads into the field of registry and share accounting by 1985. Since then, we have utilized our experience and superlative expertise to go from strength to strengthto better our services, to provide new ones, to innovate, diversify and in the process, evolved Karvy as one of Indias premier integrated financial service enterprise.

Thus over the last 20 years Karvy has traveled the success route, towards building a reputation as an integrated financial services provider, offering a wide spectrum of services. And we have made this journey by taking the route of quality service, path breaking innovations in service, versatility in service and finallytotality in service. Its highly qualified manpower, cutting-edge technology, comprehensive infrastructure and total customer-focus has secured for us the position of an emerging financial services giant enjoying the confidence and support of an enviable clientele across diverse fields in the financial world.

Its values and vision of attaining total competence in our servicing has served as the building block for creating a great financial enterprise, which stands solid on our fortresses of financial strength - our various companies.

With the experience of years of holistic financial servicing behind us and years of complete expertise in the industry to look forward to, we have now emerged as a premier integrated financial services provider.

And today, Karvy look with pride at the fruits of mastery and experience comprehensive financial services that are competently segregated to service and manage a diverse range of customer requirements.

In the year 1981, KARVY was started by these five milestones, they are.

K- KUTUMB RAO

AJAY KUMAR

R- RAM KRISHNA

V- VIJAY KUMAR

Y- YUGANDHARThese five people (Chartered Accountant) have started KARVY with a view to provide financial services and consultancy to the needed people. By profession these five people are Chartered Accountants.

KARVY as an organisation started its operation in the year 1979 and thereafter it goes on setting up milestones after mile stones.

KARVY a premier integrated financial services company which has, over the years, firmly entrenched its name into various segments of the financial services industry. Backed by a sound state-of-the-art technology and a highly motivated employee force, Karvy has carved a niche for itself and is ranked among the top companies in the area of financial services. It has a wide network of 540 + Branches which gives Karvy a tremendous mileage in being close to the retail customer. All of Karvy services are also backed by strong quality aspects, which have helped Karvy to be certified as an ISO 9002 Company by DNV.Apart from being the largest Registrar in the country, KARVY is also a registered Depository Participant with NSDL and CDSL, and ranked among the top 5 Depository Participants in the country. Now this given below defines Karvy Serving Every 20th Citizen of India

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

India's No.1 Registrar & Securities Transfer Agents

ISO 9002 Certified Operations by DNV

Among top 10 Investment Bankers

Largest Distributor of Financial Products

MISSION OF KARVY: Our mission is to be a leading and preferred service provider to our customers, and we aim to achieve this leadership position by building an innovative, enterprising, and technology driven organization which will set the highest standards of service and business ethics . Our Clients. Our Focus: Clients are the reason for our being personalized service, professional care; pro-activeness are the values that help us nurture enduring relationships with our clients. Respect for the individual: Each and every individual is an essential building block of our organization. We are the kiln that hones individuals to perfection. Be they our employees, shareholders or investors. We do so by upholding their dignity & pride, inculcating trust and achieving a sensitive balance of their professional and personal lives. Teamwork: None of us is more important than all of us. Each team member is the face of Karvy. Together we offer diverse services with speed, accuracy and quality to deliver only one product: excellence. Transparency, co-operation, invaluable individual contributions for a collective goal, and respecting individual uniqueness within a corporate whole, are how we deliver again and again. Responsible Citizenship: A social balance sheet is as rewarding as a business one. As a responsible corporate citizen, our duty is to foster a better environment in the society where we live and work. Abiding by its norms, and behaving responsibly towards the environment, are some of our growing initiatives towards realizing it. Integrity: Everything else is secondary. Professional and personal ethics are our bedrock. We take pride in an environment that encourages honesty and the opportunity to learn from failures than camouflage them. We insist on consistency between works and actions.KARVY, is a premier integrated financial services provider, and ranked among the top five in the country in all its business segments, servicing over 16 million individual investors in various capacities, and provides investors servicing to over 300 corporates, comprising the whos who of India Inc. Karvy group covers the entire spectrum of financial services such as stock broking, depository participants, distribution of financial products - mutual funds, bonds, fixed deposit, equities, insurance broking, commodities broking, personal finance advisory services, merchant banking & corporate finance, placement of equity, IPOs, among others. Karvy has a professional management team and ranks among the best in technology, operations and research of various industrial segments.

In a span of over two decades, Karvy has emerged as one of the leading financial services company in India driven by professionalism and an unwavering commitment to innovation. Karvy continues to surge ahead by identifying, assessing and meeting critical needs of its corporate clients and professionals.Karvy has in the course of its various activities, felt an acute need for a greater degree of corporate compliance, legal awareness, easy access and reference to corporate laws and records on the part of corporates, corporate executives and professionals. It has different sectors that are given below:Karvy Stock Broking Ltd:

Member - National Stock Exchange (NSE), The Bombay Stock Exchange (BSE), and The Hyderabad Stock Exchange (HSE).Karvy Stock Broking Limited, one of the cornerstones of the Karvy edifice, flows freely towards attaining diverse goals of the customer through varied services creating a plethora of opportunities for the customer by opening up investment vistas backed by research-based advisory services. Here, growth knows no limits and success recognizes no boundaries. Helping the customer create waves in his portfolio and empowering the investor completely is the ultimate goal. Karvy offers services that are beyond just a medium for buying and selling stocks and shares. Instead we provide services which are multi dimensional and multi-focused in their scope. There are several advantages in utilizing our Stock Broking services, which are the reasons why it is one of the best in the country. It offers trading on a vast platform; National Stock Exchange, Bombay Stock Exchange and Hyderabad Stock Exchange. More importantly, it makes trading safe to the maximum possible extent, by accounting for several risk factors and planning accordingly. It is assisted in this task by its in-depth research, constant feedback and sound advisory facilities. The Finapolis, which analyzes the latest stock market trends and takes a close look at the various investment options, and products available in the market, while a weekly report, called Karvy Bazaar Baatein, keeps you more informed on the immediate trends in the stock market. In addition, our specific industry reports give comprehensive information on various industries. Besides this, Karvy also offer special portfolio analysis packages that provide daily technical advice on scrips for successful portfolio management and provide customized advisory services to help customers make the right financial moves that are specifically suited to its portfolio.

Karvy Comtrade Ltd:

Karvy Comtrade Limited is another venture of the prestigious Karvy group. With its well established presence in the multifarious facets of the modern Financial services industry from stock broking to registry services, it is indeed a pleasure for us to make foray into the commodities derivatives market which opens yet another door for us to deliver its service to its beloved customers and the investor public at large. Commodities market, contrary to the beliefs of many people, has been in existence in India through the ages. However the recent attempt by the Government to permit Multi-commodity National levels exchanges has indeed given it, a shot in the arm. As a result two exchanges Multi Commodity Exchange (MCX) and National Commodity and derivatives Exchange (NCDEX) have come into being. These exchanges, by virtue of their high profile promoters and stakeholders, bundle in themselves, online trading facilities, robust surveillance measures and a hassle-free settlement system. The futures contracts available on a wide spectrum of commodities like Gold, Silver, Cotton, Steel, Soya oil, Soya beans, Wheat, Sugar, Channa etc., provide excellent opportunities for hedging the risks of the farmers, importers, exporters, traders and large scale consumers.

Gold, , Silver, Castor Seeds, Soy Seeds, Castor Oil, Refined Soy Oil, Soymeal, RBD Palmolein, Crude Palm Oil, Groundnut Oil, Mustard Seed, Mustard Seed Oil, Cottonseed Oilcake, Cotton seed, Pepper, Red Chilly, Jeera, Turmeric, Steel Long, Steel Flat, Copper, Nickel, Tin etc.

Kapas, Long Staple Cotton, Medium Staple Cotton,

Chana, Urad, Yellow Peas, Rice, Basmati Rice, Wheat, Maize, Sarbati Rice

Crude Oil

Karvy Computer share Private Limited:It is a joint venture between Computer share, Australia and Karvy Consultants Limited, India in the registry management services industry. Computer share, Australia is the worlds largest and only global share registry with the joint venture with Computer share, reckoned as the largest registrar in the world, servicing over 60 million shareholder accounts for over 7,000 corporations across eleven countries spread across five continents. Computer share manages more than 70 million shareholder accounts for over 13,000 corporations around the world. Karvy Computer share Private Limited, today, is India's largest Registrar and Share Transfer Agent servicing over 300 corporate and mutual funds and 16 million investors.

Products & Services Karvy Computer share is the largest share registry and transfer agency in the country and provides unmatched registry management services to corporate clients. Karvys service gamut includes Initial Public Offers (IPOs) processing, share holder servicing, effecting corporate actions, investor information services and host of technology enabled services to facilitate efficient and effective service delivery.

Corporate Share and Mutual Fund Registry Services

Transaction Processing Services

Investor Communication Services

Technology Enabled Services

Karvy Global Services Limited:

It is an ISO 9001:2000 certified company and was the first third party business and knowledge process outsourcing company in India to obtain ISO 27001:2005 certifications. KARVY Global Services Limited strives to offer clients a comforting experience that mitigates concerns on quality by having in place the policies, processes, measures and controls which is at par with the best in the world. Six Sigma methodologies are implemented in all phases of every project to ensure continuous improvement.

Its employees are the biggest ambassadors of the company and its internal customers. It understands that managing the people factor is the key to our growth and satisfaction of its clients. It has provided for an ergonomic and comfortable work environment that fosters an open and progressive culture. Karvy have been able to attract talent from all across the country by virtue of its presence across 350 cities in India.

Karvy Insurance Broking Private Limited:Karvys wide national network, spanning the length and breadth of India, further supports these advantages. Further, personalized service is provided here by a dedicated team committed in giving hassle-free service to the clients. At Karvy Insurance Broking Pvt. Ltd., it provides both life and non-life insurance products to retail individuals, high net-worth clients and corporate. With the opening up of the insurance sector and with a large number of private players in the business, it is in a position to provide tailor made policies for different segments of customers. In its journey to emerge as a personal finance advisor, it will be better positioned to leverage its relationships with the product providers and place the requirements of the customers appropriately with the product providers. With Indian markets seeing a sea change, both in terms of investment pattern and attitude of investors, insurance is no more seen as only a tax saving product but also as an investment product. By setting up a separate entity, it would be positioned to provide the best of the products available in this business to the customers.Karvy Consultants Limited:

As the flagship company of the Karvy Group, Karvy Consultants Limited has always remained at the helm of organizational affairs, pioneering business policies, work ethic and channels of progress. Having emerged as a leader in the registry business, the first of the businesses that it ventured into, it has now transferred this business into a joint venture with Computer share Limited of Australia, the worlds largest registrar. Today, it provide service over seven lakh customer accounts in this business spread across over 540 cities/towns in India and are ranked amongst the largest Depository Participants in the country.

IT Enabled Services:Karvys technology Services division forms the ideal platform to unleash its technology initiatives and make its presence felt on the Internet. Karvys past achievements include many quality websites designed, developed and deployed by the company. Company also possess our own web hosting facilities with dedicated bandwidth and a state-of-the-art server farm (data center) with services functioning on a variety of operating platforms such as Windows, Solaris, Linux and UNIX.Karvy Investor Services Limited:Recognized as a leading merchant banker in the country, Karvy has registered with SEBI as a Category I merchant banker. This reputation was built by capitalizing on opportunities in corporate consolidations, mergers and acquisitions and corporate restructuring, which have earned the reputation of a merchant banker. Raising resources for corporate or Government Undertaking successfully over the past two decades have given the confidence to renew its focus in this sector. Karvys quality professional team and our work-oriented dedication have propelled it to offer value-added corporate financial services and act as a professional navigator for long term growth of its clients, who include leading corporate State Governments, foreign institutional investors, public and private sector companies and banks, in Indian and global markets. It has also emerged as a trailblazer in the arena of relationships, both at the customer and trade levels because of its unshakable integrity, seamless service and innovative solutions that are tuned to meet varied needs. Its team of committed industry specialists, having extensive experience in capital markets, further nurtures this relationship. Karvys financial advice and assistance in restructuring, divestitures, acquisitions, de-mergers, spin-offs, joint ventures, privatization and takeover defense mechanisms have elevated its relationship with the client to one based on unshakable trust and confidence.

Karvy Realty and Services (India) Limited (KRSIL):It is promoted by the KARVY Group, Indias largest integrated financial services group. The group carries forward its legacy of trust and excellence in investor and customer services delivered with a passion for services and the highest level of quality that align with global standards. Karvy Realty and Services (India) Limited is engaged in the business of real estate and property services offering value added property services. Karvy Realty and Services Limited is your next-door Personal Real Estate Advisor to guide and hand hold you through real estate transactions and mentoring valuable investment opportunities. Karvy Realty and Services Limited offers truly international quality services in the area of property services serving individual and commercial establishments.

Karvy Inc:

With our growing ambitions of reaching out to investors across the shores of this country, Karvy group has set up Karvy Inc. in the US located in New York to provide various financial products and information on Indian equities to potential Foreign Institutional Investors (FIIs) in the region. Karvy Inc. is registered as a broker-dealer with NYSE. This entity would extensively facilitate various businesses of Karvy viz., stock broking (Indian equities), research and investment by Qualified Institutional Buyers (QIBs) in Indian markets for both secondary and primary offerings.

Karvy Advantage:

Personalized services at your doorstep

Choice of properties to suit your budget

Assistance in getting bank finance

Hand holding till the completion of the transaction

Advice on real estate investments backed by research KARVY is the Stock Broker and are Registered Member of the National Stock Exchange and the Hyderabad Stock Exchange. It has over the last few years, set up Trading Terminals across the country and today have a network of more than 540 Terminals located at over 30 cities to provide retail stock broking services. Its Stock Broking arm is backed by a very strong research team comprising of highly charged professionals who conduct studies on various industry segment and corporates.

Karvy is SEBI registered Category I merchant banker and is today ranked among the top ten in the country. Karvy is known in the merchant banking segment as a professional advisor in structuring IPOs, takeover assignments and buyback exercises. With the economy trends offering multifarious opportunities in corporate consolidations, mergers and acquisitions, hive offs and corporate restructuring, Karvy is positioning itself as a corporate consultant which would offer value added services and act as a professional navigator for long term growth of its clients. Karvy has the backing of a professional team with experience in handling financial climates in both Indian and global markets.

Backed by a predominantly service oriented culture and also capitalizing on its experience of handling a variety of customers, we offer a plethora of financial products through our retail arm KARVY-THE FINAPOLIS. The business of distribution of financial products includes Public Issue of bonds, equity shares, fixed deposits of corporates, distribution of units of various Mutual Funds, a basket of liability products comprising personal loans, car loans, housing loans and loans against shares and as the sunrise market of Insurance products. Apart from these products, "The Finapolis" also offers personal tax planning advice, share broking and demat services. All these products reach the ultimate customer through our wide spread network of branches and retail outlets.

KARVY STOCK BROKING LIMITED

Member - National Stock Exchange (NSE), The Bombay Stock Exchange (BSE), and The Hyderabad Stock Exchange (HSE). Karvy Stock Broking Limited, one of the cornerstones of the Karvy edifice, flows freely towards attaining diverse goals of the customer through varied services. Creating a plethora of opportunities for the customer by opening up investment vistas backed by research-based advisory services. Here, growth knows no limits and success recognizes no boundaries. Helping the customer create waves in his portfolio and empowering the investor completely is the ultimate goal. Stock Broking Services

It offers services that are beyond just a medium for buying and selling stocks and shares. Instead it provides services which are multi dimensional and multi-focused in their scope. There are several advantages in utilizing its Stock Broking services, which are the reasons why it is one of the best in the country. It offers trading on a vast platform; National Stock Exchange, Bombay Stock Exchange and Hyderabad Stock Exchange. More importantly, it makes trading safe to the maximum possible extent, by accounting for several risk factors and planning accordingly. It is assisted in this task by its in-depth research, constant feedback and sound advisory facilities. Its highly skilled research team, comprising of technical analysts as well as fundamental specialists, secure result-oriented information on market trends, market analysis and market predictions. This crucial information is given as a constant feedback to our customers, through daily reports delivered thrice daily ; The Pre-session Report, where market scenario for the day is predicted, The Mid-session Report, timed to arrive during lunch break , where the market forecast for the rest of the day is given and The Post-session Report, the final report for the day, where the market and the report itself is reviewed. To add to this repository of information, it publishes a monthly magazine Karvy; The Finapolis, which analyzes the latest stock market trends and takes a close look at the various investment options, and products available in the market, while a weekly report, called Karvy Bazaar Baatein, keeps you more informed on the immediate trends in the stock market. In addition, our specific industry reports give comprehensive information on various industries. Besides this, it also offers special portfolio analysis packages that provide daily technical advice on scrips for successful portfolio management and provide customized advisory services to help you make the right financial moves that are specifically suited to your portfolio. Its Stock Broking services are widely networked across India, with the number of its trading terminals providing retail stock broking facilities.. Factors such as its success in the Electronic custody business has helped build on its tradition of trust even more. Consequentially its retail client base expanded very fast. To empower the investor further it has made serious efforts to ensure that its research calls are disseminated systematically to all our stock broking clients through various channels chat, e-mail, SMS etc. Its foray into commodities broking has been path breaking and we are in the process of converting existing traders in commodities into the more organized mainstream of trading in commodity futures, both as a trading and risk hedging mechanism. In the future, its focus will be on the emerging businesses and to meet this objective, we have enhanced our manpower and revitalized our knowledge base with enhances focus on Futures and Options as well as the commodities business.Depository Participants:The onset of the technology revolution in financial services Industry saw the emergence of Karvy as an electronic custodian registered with National Securities Depository Ltd (NSDL) and Central Securities Depository Ltd (CSDL) in 1998. Karvy set standards enabling further comfort to the investor by promoting paperless trading across the country and emerged as the top 3 Depository Participants in the country in terms of customer serviced. Offering a wide trading platform with a dual membership at both NSDL and CDSL, we are a powerful medium for trading and settlement of dematerialized share. It has established live DPMs, Internet access to accounts and an easier transaction process in order to offer more convenience to individual and corporate investors. A team of professional and the latest technological expertise allocated exclusively to its demat division including technological enhancements like SPEED-e; make its response in a very short period of time and its delivery impeccable.

Distribution of Financial Products:

The paradigm shift from pure selling to knowledge based selling drives the business today. With our wide portfolio offerings, it occupies all segments in the retail financial services industry. A 1600 team of highly qualified and dedicated professionals drawn from the best of academic and professional backgrounds are committed to maintaining high levels of client service delivery. This has propelled us to a position among the top distributors for equity and debt issues with an estimated market share of 15% in terms of applications mobilized, besides being established as the leading procurer in all public issues. Its monthly magazine, Finapolis, provides up-dated market information on market trends, investment options, opinions etc. Advisory ServicesUnder its retail brand Karvy the Finapolis', it delivers advisory services to a cross-section of customers. The service is backed by a team of dedicated and expert professionals with varied experience and background in handling investment portfolios. They are continually engaged in designing the right investment portfolio for each customer according to individual needs and budget considerations with a comprehensive support system that focuses on trading customers' portfolios and providing valuable inputs, monitoring and managing the portfolio through varied technological initiatives. Private Client GroupThis specialized division was set up to cater to the high net worth individuals and institutional clients keeping in mind that they require a different kind of financial planning and management that will augment not just existing finances but their life-style as well. Here it follows a hard-nosed business approach with the soft touch of dedicated customer care and personalized attention. For this purpose it offers a comprehensive and personalized service that encompasses planning and protection of finances, planning of business needs and retirement needs and a host of other services, all provided on a one-to-one basis. Its research reports have been widely appreciated by this segment. The delivery and support modules have been fine tuned by giving its clients access to online portfolio information, constant updates on their portfolios as well as value-added advise on portfolio churning, sector switches etc. The investment recommendations given by its research team in the cash market has enjoyed a high success rate.

KARVY INVESTOR SERVICES LIMITED

Merchant BankingRecognized as a leading merchant banker in the country, we are registered with SEBI as a Category I merchant banker. This reputation was built by capitalizing on opportunities in corporate consolidations, mergers and acquisitions and corporate restructuring, which have earned us the reputation of a merchant banker. Raising resources for corporate or Government Undertaking successfully over the past two decades have given the confidence to renew its focus in this sector. Its quality professional team and its work-oriented dedication have propelled us to offer value-added corporate financial services and act as a professional navigator for long term growth of our clients, who include leading corporates, State Governments, foreign institutional investors, public and private sector companies and banks, in Indian and global markets. It has also emerged as a trailblazer in the arena of relationships, both at the customer and trade levels because of our unshakable integrity, seamless service and innovative solutions that are tuned to meet varied needs. Its team of committed industry specialists, having extensive experience in capital markets, further nurtures this relationship. Its financial advice and assistance in restructuring, divestitures, acquisitions, de-mergers, spin-offs, joint ventures, privatization and takeover defense mechanisms have elevated our relationship with the client to one based on unshakable trust and confidence. KARVY COMPUTERSHARE PRIVATE LIMITED:It has traversed wide spaces to tie up with the worlds largest transfer agent, the leading Australian company, Computer share Limited. The company that services more than 75 million shareholders across 7000 corporate clients and makes its presence felt in over 12 countries across 5 continents has entered into a 50-50 joint venture with it. With its management team completely transferred to this new entity, it will aim to enrich the financial services industry than before. The future holds new arenas of client servicing and contemporary and relevant technologies as it has geared to deliver better value and foster bigger investments in the business. The worldwide network of Computer share will hold us in good stead as we expect to adopt international standards in addition to leveraging the best of technologies from around the world.

Issue Registry In our voyage towards becoming the largest transaction-processing house in the Indian Corporate segment, we have mobilized funds for numerous corporate, Karvy has emerged as the largest transaction-processing house for the Indian Corporate sector. With an experience of handling over 700 issues, Karvy today, has the ability to execute voluminous transactions and hard-core expertise in technology applications have gained us the No.1 slot in the business. Karvy is the first Registry Company to receive ISO 9001:2000 certification in India that stands testimony to its stature Karvy has the backing of skilled human resources complemented by requisite technological packages to ensure a faster processing capability. Karvy has the benefit of a good synergy between depositories and registry that enables faster resolution to related customer queries. Apart from its unique investor servicing presence in all the phases of a public Issue, it is actively coordinating with both the main depositories to develop special models to enable the customer to access depository (NSDL, CDSL) services during an IPO. Our trust-worthy reputation, competent manpower and high-end technology and infrastructure are the solid foundations on which its success is built.

Growth story of Karvy over periods:

OBJECTIVES TARGETS/TASKS

STRATEGIES

ACHIEVEMENTS

LIMITATIONS

CONCLUSIONON THE JOB TRAINING (OJT)OBJECTIVES:

On The Job Training (OJT) gives a practical exposure and helps in acquiring the on road skills.

To know the consumer behaviour in investing their money in markets.

To know the caps preferences of consumer

To collect data on consumers preferences on equity markets.

To gain the complete knowledge about the products of Karvy.

To generate the leads through the survey.

To build the relation ship with the new customers and to follow up them, make sure that they are satisfied with the product.

To maintain good relationship with the corporate employees.

To introduce Karvy to those people who dont have any knowledge about Karvy and its products and services.

To find out the customer awareness on booming financial market and to find out the investment patterns of the people.

To make the customer aware of the benefits of the product and convince him to open the account.

STRATEGIES: Initially I followed strategy of getting leads from the questionnaires which I filled at the Banks, offices, big shops etc. Later on I collected leads from my personal references. My Company also helped me a lot by giving leads. Finally the references which I got from the existing customers helped me a lot.TASKS AND TARGETS: On the first day I have given the target of 10 lacks of mutual funds, 2 lacks of insurance and two commodity accounts. I have given business of Rs.8,15,000 of mutual funds, Rs.1,25,000 of Insurance in these two months.

In my branch my mentor said to collect information and database from the market by distributing the company leaflets. I have visited 15 days in the markets and temples in all the markets, I have visited most of the businessman in Bhubaneswar and finally collected 150 data base who are really interested in share markets and MFs.

Then I have make telephone calls to most of the customers and fix an appointment with them later I visit to them.LIMITATIONS:

Getting accurate response form the respondents due to their inherent problems. They may be partial or refuse to cooperate.

Many of the people dont find time to listen to the product features.

People dont aware of Karvy consultant services. Sample size is limited due to the limit period of allocated for survey.CONCLUSION:

My OJT has given me a good experience in learning how to sell a product, how to deal with the customers, how satisfy an un satisfied customer, how to generate leads, how to maintain relation with the existing customers, how to get the references from the existing customers. I have learnt the convincing and persuasive skills in my OJT. Initially I have faced some hurdles in the beginning of the project to get the leads, but later on I could coup with the problems and I am able to get more knowledge about the financial markets insurances, mutual funds, stock broking and IPOs.

MUTUALFUNDS:Investing in India or any foreign market may feel like a fool's errand if one has no much market expertise to back up purchases. Mutual funds come to the rescue, allowing investors the opportunity to profit from India without in-depth knowledge of the Indian market. With a mutual fund from India, investors can pool their money with that of others and benefit from the market and investing expertise of a professional manager. A mutual fund is a common pool of money in to which investors with common investment objective place their contributions that are to be invested in accordance with the stated investment objective of the scheme. The investment manager would invest the money collected from the investor in to assets that are defined/ permitted by the stated objective of the scheme. For example, an equity fund would invest equity and equity related instruments and a debt fund would invest in bonds, debentures, gilts etc. Unit Trust of India is the first Mutual Fund set up under a separate act, UTI Act in 1963, and started its operations in 1964 with the issue of units under the scheme US-64. This pooled income is professionally managed on behalf of the unit-holders, and each investor holds a proportion of the portfolio i.e. entitled not only to profits when the securities are sold, but also subject to any losses in value as well.Concept:

To state in simple words, a mutual fund collects the savings from small investors, invests them in Government and other corporate securities and earn income through interests and dividends, besides the capital gain. It works on the principle of small drop water makes a big ocean. Hence, it is nothing but a collective investment. It is formed by coming together of a number of investors who transfer their surplus funds to a professionally qualified organization to manage it.

To get the surplus funds from the investors, the fund adopts a simple technique. Each fund is divide into a small fraction called units of equal value. Each investor is allocated units in proportion to the size of his investment. Thus every investor, whether big or small, will have a stake in the fund and can enjoy the wide portfolio of the investment held by the fund. Hence mutual funds enable millions of small and large investors to participate in and derive the benefits of the capital market growth. It has emerged as a popular vehicle of creation of wealth due to high return, lower cost and diversified risk. The flow chart below describes broadly the working of a mutual fund.

The Securities and Exchange Board Of India (Mutual Funds) Regulation, 1993 defines a mutual fund as a fund established in the form of trust by a sponsor, to raise monies by the trustees through the sale of units to the public, under one or more schemes, for investing in securities in accordance with these regulation.A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciation realised are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. The flow chart below describes broadly the working of a mutual fund; A mutual fund is set up in the form of a trust, which has sponsor, trustees, asset Management Company (AMC) and custodian. The trust is established by a sponsor or more than one sponsor who is like promoter of a company.

The trustees of the mutual fund hold its property for the benefit of the unit holders. Asset Management Company (AMC) approved by SEBI manages the funds by making investments in various types of securities. Custodian, who is registered with SEBI, holds the securities of various schemes of the fund in its custody. The trustees are vested with the general power of superintendence and direction over AMC. They monitor the performance and compliance of SEBI Regulations by the mutual fund.

TYPES OF MUTUAL FUND SCHEMES

There are wide variety of Mutual Fund Schemes exist to cater to the needs such as financial position, risk tolerance and return expectations etc. generally these are the three main schemes of mutual funds. These are given below:

(A) By Structure

Open-Ended Schemes

Close-Ended Schemes

Interval Schemes

(B) By Investment Objectives

Growth Schemes

Income Schemes

Balanced Schemes

Money Market Schemes

(C) By Other Schemes

Tax Saving Schemes

Special Schemes

Index SchemesSector Specific Schemes

Mutual Fund is a type of collective investment method by which many people pool their money in a fund and invest in various securities like stock, bonds or cash investments. Every mutual fund has a fund manager or investment advisor so it is also called as managed funds. In worlds top stock markets collective investments holds a major share because of its flexibility. Depends on the objective of the funds like long term growth and low risk factor or high income growth with high risk factor or low growth rate and stability of principal, fund manager invests in respective fields on behalf of shareholders. For individual investors it is very easy type of investment because someone else manage their funds, take care of accounts and invest money over many different available securities.Open-End Fund:

An open-end fund is the most common variety of mutual fund. Both existing and new investors may add any amount of money they want to the fund. In other words, there is no limit to the number of shares in the fund. Investors buy and sell shares usually by dealing directly with the fund company, not with any exchange. The price fluctuates in response to the value of the investments made by the fund, but the fund company values the shares on its own; investor sentiment about the fund is not considered. Open-end funds keep some portion of their assets in short-term and money market securities to provide available funds for redemptions. A large portion of most open mutual funds is invested in highly liquid securities, which enables the fund to raise money by selling securities at prices very close to those used for valuations.

Closed-End Fund:

A closed-end fund looks much like a stock of a publicly traded company: it's traded on some stock exchange, you buy or sell shares in the fund through a broker just like a stock (including paying a commission), the price fluctuates in response to the fund's performance and (very important) what people are willing to pay for it. Also like a publicly traded company, only a fixed number of shares are available. These funds have a stipulated maturity period generally ranging from 3 to 15 years. The fund is open for subscripti\on only during a specified period. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where they are listed. The market price of closed-end funds is determined by supply and demand and not by net-asset value (NAV), as is the case in open-end funds. Usually close ended mutual funds trade at discounts to their underlying asset value.

Benefits of Open-ended Funds and Close Ended Funds:

Liquidity In open-ended mutual funds, you can redeem all or part of your units any time you wish. Some schemes do have a lock-in period where an investor cannot return the units until the completion of such a lock-in period. Convenience an investor can purchase or sell fund units directly from a fund, through a broker or a financial planner. The investor may opt for a Systematic Investment Plan (SIP) or a Systematic Withdrawal Advantage Plan (SWAP). In addition to this an investor receives account statements and portfolios of the schemes. Flexibility Mutual Funds offering multiple schemes allow investors to switch easily between various schemes. This flexibility gives the investor a convenient way to change the mix of his portfolio over time.

Transparency Open-ended mutual funds disclose their Net Asset Value (NAV) daily and the entire portfolio monthly. This level of transparency, where the investor himself sees the underlying assets bought with his money, is unmatched by any other financial instrument. Thus the investor is in the know of the quality of the portfolio and can invest further or redeem depending on the kind of the portfolio that has been constructed by the investment manager.

In Close Ended funds the benefits is that one can save his money for long time and if the market downs some times the money he can withdraw later and constant in a fund for a longer period of time also give more profit.Growth Funds:

The aim of growth funds is to provide capital appreciation over the medium to long term. Such schemes normally invest a majority of their corpus in equities. Growth schemes are ideal for investors who have a long-term outlook and are seeking growth over a period of time.

Income Funds

The aim of Income Funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures and Government securities. Income Funds are ideal for capital stability and regular income. Capital appreciation in such funds may be limited, though risks are typically lower than that in a growth fund.

Balanced Funds

The aim of Balanced Funds is to provide both growth and regular income. Such schemes periodically distribute a part of their earning and invest both in equities and fixed income securities in the proportion indicated in their offer documents. This proportion affects the risks and the returns associated with the balanced fund - in case equities are allocated a higher proportion, investors would be exposed to risks similar to that of the equity market. Balanced funds with equal allocation to equities and fixed income securities are ideal for investors looking for a combination of income and moderate growth.

Money Market Funds

The aim of Money Market Funds is to provide easy liquidity, preservation of capital and moderate income. These schemes generally invest in safer short-term instruments such as Treasury Bills, Certificates of Deposit, Commercial Paper and Inter-Bank Call Money. Returns on these schemes may fluctuate depending upon the interest rates prevailing in the market. These are ideal for corporate and individual investors as a means to park their surplus funds for short periods.

Tax Saving Schemes

These schemes offer tax rebates to the investors under specific provisions of the Indian Income Tax laws, as the Government offers tax incentives for investment in specified avenues. Investments made in Equity Linked Savings Schemes (ELSS) and Pension Schemes are allowed as deduction under Section 88 of the Indian Income Tax Act, 1961.

Index Schemes

Index Funds attempt to replicate the performance of a particular index such as the BSE Sensex or the NSE S&P CNX 50.

Sectoral Schemes

Sectoral Funds are those which invest exclusively in specified sector(s) such as FMCG, Information Technology, Pharmaceuticals, etc. These schemes carry higher risk as compared to general equity schemes as the portfolio is less diversified, i.e. restricted to specific sectors / industries.

Net Asset ValueThis is per share amount of total funds value. To calculate the NAV first add current market values of all assets and divide it by the number of shares. In stocks prices change in every second but NAV is calculated in a daily basis.

Equity Funds

Mutual funds invest in stock market are called equity funds or stock funds. Equity funds can again divided in to many categories

Growth Funds

In this funds will be invested in companies with high growth potential for a long term capital appreciation. Growth funds are more volatile to market risks.

Income Funds

Invest in companies with high dividend payouts providing safety and regular income.

Blend Funds

It is a mixture of Growth and Income funds to provide long term capital appreciation and current income. By risk-wise it is in between growth funds and income funds

Small-Cap, Mid-Cap and Large-Cap FundsIn stock market companies are divided in to many groups according to their market capitalization like large-cap, mid-cap and small-cap companies. Market Capitalization is one way of measuring the size of the company and is decided by the number of shares in the market and value per share. Mutual funds are also categorized like this based on the share they hold.

The history of mutual fund in India can be divided into 2 important phases: A 1963-1987: The Unit Trust of India was the sole player in the industry. Created by an Act of Parliament in 1963, UTI launched its first product, the unit scheme 1964, which is even today the single largest mutual fund scheme. UTI created a number products such as monthly income plans, children's plans, equity-Oriented schemes and offshore funds during this period. UTI managed assets of Rs 6700 crore at the end of this phase.

B 1987-1993: In 1987 public sector banks and financial institutions entered the mutual fund industry. SBI mutual fund was the first non-UTI fund to be set up in 1987. Significant shift of investors from deposits to mutual fund industry happened during this period. Most funds were growth oriented closed ended funds. By the end of this period, assets under UTI's management grew to Rs 38247 crore and public sector funds managed Rs 8750 crore. .Mutual Fund Services: They have attained a position of immense strength as a provider of across-the-board transfer agency services to AMCs, Distributors and Investors. Nearly 40% of the top-notch AMCs including prestigious clients like Deutsche AMC and UTI swear by the quality and range of services that we offer. Besides providing the entire back office processing, they provide the link between various Mutual Funds and the investor, including services to the distributor, the prime channel in this operation. Carrying the limitless' ideology forward, they have explored new dimensions in every aspect of Mutual Fund servicing right from volume management, cost effective pricing, delivery in the least turnaround time, efficient back-office and front-office operations to customized service. We have been with the AMCs every step of the way, helping them serve their investors better by offering them a diverse and customized range of services. The first to market' approach that is our anthem has earned us the reputation of an innovative service provider with a visionary bent of mind.

The schematic diagram showing mutual fund classification:

Strategies that one can use while investing in mutual funds:

These are three types:

Systematic Investment Plan (SIP):- This investment plan making investment in fixed amounts in a particular scheme, at a predetermined periodical interval time.

Systematic withdrawal Plan (SWP):- With this plan, one can withdraw fixed sum of money or a part of the appreciation from a particular scheme, at a predetermined periodical interval of time.

Systematic transfer Plan (STP):- This scheme helps one to transfer sum of money from one scheme to another scheme of the same fund house at the predetermined periodical intervals of time. One can either a fixed amount of money or only the appreciation earned from the scheme the money was being transferred from.Benefits of Mutual Funds:

Affordability: A mutual fund invests in a portfolio of assets, i.e. bonds, shares, etc. depending upon the investment objective of the scheme. An investor can buy in to a portfolio of equities, which would otherwise be extremely expensive. Variety: Mutual funds offer a tremendous variety of schemes. This variety is beneficial in two ways: first, it offers different types of schemes to investors with different needs and risk appetites; secondly, it offers an opportunity to an investor to invest sums across a variety of schemes, both debt and equity.

Professional Management: Qualified investment professionals who seek to maximize returns and minimize risk monitor investor's money. When you buy in to a mutual fund, you are handing your money to an investment professional who has experience in making investment decisions. Tax Benefits: Any income distributed after March 31, 2002 will be subject to tax in the assessment of all Unit holders. However, as a measure of concession to Unit holders of open-ended equity-oriented funds, income distributions for the year ending March 31, 2003, will be taxed at a confessional rate of 10.5%.Different investment avenues are available to investors. Mutual funds also offer good investment opportunities to the investors. Like all investments, they also carry certain risks. The investors should compare the risks and expected yields after adjustment of tax on various instruments while taking investment decisions. The investors may seek advice from experts and consultants including agents and distributors of mutual funds schemes while making investment decisions. With an objective to make the investors aware of functioning of mutual funds, an attempt has been made to provide information in question-answer format which may help the investors in taking investment decision.STOCK EXCHANGES:It is also called stock market or the share market.A stock exchange, share market or bourse is a corporation or mutual organization which provides facilities for stock brokers and traders, to trade company stocks and other securities. Stock exchanges also provide facilities for the issue and redemption of securities, as well as, other financial instruments and capital events including the payment of income and dividends. The securities traded on a stock exchange include: shares issued by companies, unit trusts and other pooled investment products and bonds. To be able to trade a security on a certain stock exchange, it has to be listed there. Usually there is a central location at least for recordkeeping, but trade is less and less linked to such a physical place, as modern markets are electronic networks, which gives them advantages of speed and cost of transactions. Trade on an exchange is by members only. The initial offering of stocks and bonds to investors is by definition done in the primary market and subsequent trading is done in the secondary market. A stock exchange is often the most important component of a stock market. Supply and demand in stock markets are driven by various factors which, as in all free markets, affect the price of stocks. There is usually no compulsion to issue stock via the stock exchange itself, nor must stock be subsequently traded on the exchange. Such trading is said to be off exchange or over-the-counter. This is the usual way that bonds are traded. Increasingly, stock exchanges are part of a global market for securities. The stock exchange is controlled by the SEBI. It makes rules and regulations for all the stock exchanges. So we can say stock exchange: A place where stocks, bonds, or other securities are bought and sold.

An association of stockbrokers who meet to buy and sell stocks and bonds according to fixed regulations.

A stock exchange is a forum for trading in securities representing shares of firms. An exchange provides ways by which financing is raised by the sale of shares to outside investors. It provides a mechanism for the valuation of companies through the process of price discovery and a means by which such information is disseminated. 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, and 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 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 developed the growth of a global stock exchanges market.Basically the above products are dealing by Karvy. But in Burrabazar Karvy stock broking is the main domain business. In this stock broking they deal with mutual funds, insurance, IPOs, on line trading and DP etc. Organized marketplace in which stocks, Common Stock Equivalents and bonds are traded by members of the exchange, acting both as agents (brokers) and as principals (dealers or traders). Most exchanges have a physical location where brokers and dealers meet to execute orders from institutional and individual investors to buy and sell securities. Each exchange sets its own requirements for membership; the New York Stock Exchange has the most stringent requirements.The market in which shares are issued and traded either exchanges or over-the-counter markets. Also known as the equity market, it is one of the most vital areas of a market economy as it provides companies with access to capital and investors with a slice of ownership in the company and the potential of gains based on the company's future performance. This market can be split into two main sections: the primary and secondary market. The primary market is where new issues are first offered, with any subsequent trading going on in the secondary market.

Investors are generally not given free access to trading systems. Entry into the exchange's systems are intermediated by brokers. Brokers may simply route orders to exchanges. They sometimes make decisions as to what exchange, and what system within the exchange, should process various parts of an order. In open outcry markets, brokers also physically represent orders on the floor of the exchange. Exchanges are differentiated most by a class of intermediaries known as market makers. Market makers trade for their own accounts, usually providing an offer to sell and an offer to buy at the same time, but at different prices. In doing so, they both contribute to the pricing process and supply immediacy to the market by a willingness to be counterparty to an order for which another investor may not be immediately available. On some exchanges, most notably the NSE, there is one primary market maker designated by the exchange, known as the specialist. The specialist obtains consideration for the supply of immediacy and the maintenance of an orderly market by having private access to order-flow information through the order book for the stock. There may be multiple market makers in a given stock, regardless of the precise form of trading system. The prototype example is that of dealer markets, in which the dealers are the market makers. They post bids and offers, and trade out of their own inventory.

Exchanges have two clienteles: companies, which list their shares, and investors, who trade on the exchange. Historically, the product (a listing) offered to companies was a bundle, consisting of(1) liquidity, (2) monitoring of trading against forms of fraud, (3) standard-form rules of trading, (4) a signal that a listing firm's stock is of high quality, and (5) a clearing function to ensure timely payment and delivery of shares .The product offered to investors consists of a combination of liquidity and pricing information, as well as any benefits accruing to the investor from the bundle offered to companies.

The approach taken here is to identify important attributes and functions of institutions satisfying the basic definition in practice. Exchanges provide trading systems and may offer more than one. Types of trading systems are sometimes differentiated by the form of market intermediation provided by entities with direct access to the system. The nature of competition between exchanges is a defining feature, since exchanges may adopt varying market structures in order to compete in different fashions. A stock exchange is a business entity, and the form of its governance arrangements is important in understanding its nature and conduct.

Trading Systems:Trading markets may be defined as systems consisting of an order routing system, an information network, and a trade execution mechanism (Stoll, 1992). A trading system is a communications technology for passing allowable messages between traders, together with a set of rules that transform traders' messages into transactions prices and allocations of quantities of stock among market participants.The nature of allowable messages varies with the exchange's rules and technology. A typical message consists of an offer to buy, or to sell, a given number of shares at a certain price. The NSE, for example, permits such messages, as well as orders, to buy some amount of stock at current market prices. The OptiMark system of the Pacific Stock Exchange also allows traders to submit a message indicating the strength of the traders' desire to transact an amount of stock at a particular price. Orders for the shares of a company, contingent on the completion of transactions in other companies, are possible. As technology advances, the ability of trading systems to offer more flexible messages increases. Online Trading can make investing quick and easy, with a click of mouse; one can buy and sell stocks from more than 100 online trading companies offering this facility. Many online trading companies offer special deals when signing up an account, like a certain number of free online trades. Check the ability of your online trading company to get the best price for investors. Most online trading firms provide this information on their website. Although online trading saves investors time and money, it does not take the homework out of making investment decisions. You may be able to make a trade in a nanosecond, but making wise investment decisions takes time. Before you trade, know why you are buying or selling, and the risk of your investment.The money that a company raises in this way is called equity capital. Unlike debt capital, which is borrowed money, equity capital does not need to be repaid as it represents continuous ownership Of the Company. In return for investing in the company, shareholders can receive dividends and other benefits. Shares that have been issued to investors by a listed company can be sold to other investors on the share market. In this way, shareholders can realize capital gains if the share price has risen in other words, make a profit by selling their shares for more than they paid for them.

Markets such as shares and property move in cycles. Many investors fall into the trap of putting all their money into one asset class usually at its peak, and then watch as another asset class takes off without them .It is better to diversify, spreading your risk, and enjoy the upturns in markets.INITIAL PUBLIC OFFERINGS (IPOs):An Initial Public Offer (IPO) is the selling of securities to the public in the primary market. It is when an unlisted company makes either a fresh issue of securities or an offer for sale of its existing securities or both for the first time to the public. This paves way for listing and trading of the issuers securities. The sale of securities can be either through book building or through normal public issue.

Indian primary market ushered in an era of free pricing in 1992. Following this, the guidelines have provided that the issuer in consultation with Merchant Banker shall decide the price. There is no price formula stipulated by SEBI. SEBI does not play any role in price fixation. The company and merchant banker are however required to give full disclosures of the parameters which they had considered while deciding the issue price. There are two types of issues, one where company and Lead Merchant Banker fix a price (called fixed price) and other, where the company and the Lead Manager (LM) stipulate a floor price or a price band and leave it to market forces to determine the final price (price discovery through book building process). Book Building is basically a process used in IPOs for efficient price discovery. It is a mechanism where, during the period for which the IPO is open, bids are collected from investors at various prices, which are above or equal to the floor price. The offer price is determined after the bid closing date. Price at which securities will be allotted is not known in case of offer of shares through Book Building while in case of offer of shares through normal public issue, price is known in advance to investor. Under Book Building, investors bid for shares at the floor price or above and after the closure of the book building process the price is determined for allotment of shares. In case of Book Building, the demand can be known everyday as the book is being built. But in case of the public issue the demand is known at the close of the issue. In a Book building issue, the issuer is required to indicate either the price band or a floor price in the prospectus. The actual discovered issue price can be any price in the price band or any price above the floor price. This issue price is called Cut-Off Price. The issuer and lead manager decides this after considering the book and the investors appetite for the stock.

The prospectus may contain either the floor price for the securities or a price band within which the investors can bid. The spread between the floor and the cap of the price band shall not be more than 20%. In other words, it means that the cap should not be more than 120% of the floor price. The price band can have a revision and such a revision in the price band shall be widely disseminated by informing the stock exchanges, by issuing a press release and also indicating the change on the relevant website and the terminals of the trading members participating in the book building process.

In case the price band is revised, the bidding period shall be extended for a further period of three days, subject to the total bidding period not exceeding ten days. It may be understood that the regulatory mechanism does not play a role in setting the price for issues. It is up to the company to decide on the price or the price band, in consultation with Merchant Bankers. As per SEBI, only electronically linked transparent facility is allowed to be used in case of book building. The Basis of Allotment should be completed with 15 days from the issue close date. As soon as the basis of allotment is completed, within 2 working days the details of credit to demat account / allotment advice and dispatch of refund order needs to be completed. So an Investor should know in about 15 days time from the closure of issue, whether shares are allotted to him or not. These are the basic of IPOs.CAPS:

Caps which refers to market capitalization and is calculated by multiplying the price of a stock by the number of shares outstanding. Generally speaking, this represents the market's estimate of the "value" of the company; however, it should be noted that while this is the common conception of market capitalization, to calculate the total market value of a company, you actually need to add the market value of any of the company's publicly traded bonds. It is divided in to four categories. Such as,

Large Cap/ Big Cap

Mid Cap

Small Cap

Micro Cap

Large Cap (Big Cap):

Companieswith a market capitalization between $10 billion and $200 billion.Mid cap:

Companies having a market capitalization between $2 billionand $10 billion. Short form of "middle cap". As the name implies, mid-cap companies are in the middle of the pack.Mid caps aren't too big, but they have a respectably sized market cap.Small Cap:

Small-cap stocks are often cited as good investments due to their low valuations and potential to grow into big-cap stocks, but the definition of small cap has changed over time. It is a company with a market capitalization of between $300 millionand $2 billion.

Micro Cap:

Companieswith market capitalizations between $50 millionand $300 million.

Objective of the Study

Research Question

Hypothesis

Research Design

Data Sources

Data Collection Procedure

Research Approaches

Research Instruments

Sampling Techniques

Evaluation and Analysis of data

Limitation during Survey

Review of literature

In a country like India the present scenario dealing with the business, as we know after 2002 Indias financial conditions have been changed widen to a far. People came to know about the financial markets and invested huge number of amount in terms of money in it and enjoyed the real benefit. Indian companies value is raising day by day not only Indian people but also foreigners are now ready to invest money in Indian markets. Market fluctuation is there in share markets so it is very necessary to know the consumer behaviour regarding investment in different financial products. The consultancy firms are enjoying success providing service to customers in their investment decisions. It is there by necessary to know the customer satisfaction, their behaviour regarding investment their attitude towards different financial products.

The realisation that this is a serious subject is, however, barely dawning. Analysts and commentators seem to treat financial markets, at least in the aggregate, in much the same way as the early industrial engineers dealt with management itself: a rational subject amenable to statistical observation, measurement and prediction. And yet, in every discussion of the ups and downs of the stocks and bonds markets, the factor called `sentiment' figures prominently. This is a `black box' which is contrasted with the forces of technical analysis, study of the corporate performance fundamentals, an `irrational' irritant, a counter-mechanism preventing markets from operation in their natural, efficient-markets hypothesis mode. There is nonetheless more to this factor of saver preference than meets the eye. A rich vein of research awaits sophisticated understanding of how investors behave as individuals as well as a congruent collective similar to a consumer sub-segment.

Naturally, interpreting `buyer-behaviour' in the area of say, mutual funds or IPOs, is one field that demands a deep collaboration between the two sets of professions with orientations that till now might have been seen as mutually opposing. Finance experts see themselves almost like `hard scientists' while the brand management and advertising fraternities are seen as `soft, touchy-feely' people. Sometimes, one wonders if the kind of breadth of vision and depth of cross-disciplinary insights that this calls for can actually be found in the same individual.

And yet there is no gainsaying the fact that the `consumer' of such financial instruments, i.e. the retail investor, is in dire need of help. To begin with, she has been spoilt by decades of assured returns as high as 14-15 per cent from PSU debt and other corporate paper. She is a total stranger to the very notion of reward being proportional to risk.

The householder-investor with a few rupees left over after paying for housing and two-wheeler installments is puzzled as to where he may park funds safely, given the volatility of the market. He is quite scared by all the talk of Black Mondays and bloodbaths, not to mention the arcane language of TV chatterati. (How do you see the mid-cap story going forward? How much upside is left and what downside strategies should be put in place? And so on!) He is very much at sea when faced with the voluminous application forms and the fancy terminology - exactly as he used to be with the `blade companies' offering 20 per cent annual returns some years ago.

For a start, the branding of the products is completely weird and confusing with the result that one does not know what one is buying. `Dynamic, growth & value, half-yearly dividend, dividend reinvest/payout scheme' and such, to quote a hypothetical example, need a glossary before one can decipher what it all means.

There is no standardisation of terminology. Monthly Income Plan does not always mean what you think it does, unless it says `dividend payout.' In some cases of the so called unit-linked plan, you don't even come to know that as much as 30 to 40 per cent of your capital may not be invested at all, but taken away, at the front end as expenses. This is the free market (or free-for-all market?) with a vengeance, and caveat emptor raised to new levels.

In India, the first boom phase came in the primary equity market, when public issue stock prices were laid down by an official. It was the embryonic stage of the equity market, triggered by the dilution of the foreign equity under the FERA regulations; and the new public issues that accompanied the growth phase of the mini-liberalization that began about 1984. The equity revolution really began to be felt only in the last decade although huge scams and scandals immediately followed it, from 1992 onwards. The retail stock and MF investor population has been growing and inevitably so, for another reason, namely, the falling rates of interest from bank and corporate debt which many a middle-class salaried person and pensioner used to depend on till some five to seven years ago.

Today, thanks to the heightened awareness and public debate in both the press and on TV, the tragic state of the real interest rates (simply put, interest adjusted for expected inflation rate) is beginning to be fully appreciated. In other words, we are facing a certain erosion of the value of one's lifetime savings in short order unless one takes the plunge into the open market and builds up a portfolio of investments.

The truth of the matter is that the average Indian investor is a greenhorn when it comes to financial markets. The causes are many: the lack of opportunity, lack of conceptual understanding and the influence of a fixed-income orientation in the Indian culture, which even applied to the trader category that operate stockist ships and showrooms for the big brand name companies. Their minimum expectation is that the family's running expenses ought to be assured by a revenue stream that has little risk attached to it. In this he is no different from the salaried employee.

The effects are that the urban, educated, white-collar employee with a few lakhs worth of savings has been a sitting duck for a succession of adventurers to take pot shots at. In other words, the same family or person who is at the core of the informed buyer segment for household products and appliances, cars, two-wheelers and so on is hopelessly lost when it comes to choosing amongst, say, mutual fund types and options.

Elsewhere in the world, the salaried person's savings are most often deposited in mutual funds, either directly or via pension funds. The theory behind this is that by pooling together a huge aggregation of individual savings and investing them, using the professional judgment of the fund manager, one spreads risk, takes advantage of volume buying and scientific data analysis, expertise and so on. Therefore it is seen as the ideal option for the individual who does not have the time, knowledge or experience to make a succession of judgments involving his hard-earned savings.

In India, one is at best at the mercy of the broker-friend-advisor network. Not that it is always unhelpful, but the individual investor's own situation and risk preference are matters that he should be able to articulate and then apply to an investment strategy that combines the usual four: cash and equivalents, Government-backed bonds, debt, and equity. The catch is that as few have the capability to do the dynamic juggling amongst the four on their own, they need the help of a relatively low-cost, low-risk selection of mutual funds. This requires a level of professional advisory which is not readily available today. Largely it is a case of the blind being led by those with partial sight, at best.

The individual buyer's decision-making process is left far behind. It is time this is remedied. Mutual funds are a viable long-term saving vehicle

The landscape of the mutual fund industry has undergone significant changes since the establishment of the Unit Trust of India in 1964, which for decades held the monopoly. By the mid 1990s, barriers to entry were gradually dismantled, allowing domestic and foreign private institutions to enter the fray. Assets under management have grown to around USD 88 bn in April 2007, nearly 10% of GDP, quadrupling in value since 1993.

Asset Under Management, in billion $

At its current growth rate, the sectors size will double over the next 10 years. With intense competition came the adoption of measures to improve transparency. Restrictions on investment in debt instruments and money markets were loosened. A number of different schemes are now available in the market, which appeals to investors varying investment objectives and constraints. The listing of open ended schemes allowed investors the flexibility to adjust their fund exposures, while regulations against fund managers use of derivatives have been relaxed, allowing them to hedge their positions. Given the rapid growth of the industry in the past 3 years, can the Indian mutual fund industry be characterized as having come of age?

Not at all when seen in the light of the low share of mutual funds in the household sectors total investment pie, i.e. is only 5.5%.

Statement Of The Problem:- Mutual funds are the saving instruments. Booming stock market have put the Indian mutual fund industry on a turnaround. Fund managers declaring the NAV in the recent past and easing of interest rates in banking and corporate sector have forced the retail investors to take a second look at the industry that had once been given up for the dead.

This study also gains the importance from changing regulatory norms, budgetary support and the change in the approach of fund managers to embrace professional and aggressive fund management. Hence, with the above outlook, an attempt has been made to study the investment management, the investment pattern and the investors financial behaviour with special reference to Mutual Funds as still such low penetration is there in this particular field.

Objective of the Study

To know the consumer behaviour, preferences and opinions about the financial products and their investment paten indifferent sectors.

To study the awareness about Karvy consultancy ltd. and its different products.

Research Question:

Which is the work of a financial consultancy firm?

What are the most attractive features in financial markets that attract a huge number of people towards it?

Why people invest in financial markets while there is more risk in getting return?

What are the benefits they get from investment in financial sectors?

Are the people aware about Karvy consultancy Ltd and its different products?

Hypothesis:

Investment in share markets is mostly like by investors than other investments. Consumer behaviour regarding investment in different caps.

Mutual Funds are popular in Indian markets except investment in share markets. Most of the people investing in different mutual funds rather than insurance products. Most of the people are basically investing in share markets in spite of mutual funds.Research Design:

Research design is the basic framework which provides the guidelines for the rest of the research process after the problem identification and setting objectives. It is the blue print according to which research is going to be conducted .It provides information on the proposed research instrument, sample unit, sample size, sampling procedure and contact method. I have used the descriptive research design here for a conclusive analysis. Descriptive information provides a sound basis for the solution of marketing problems. So the descriptive study is planned carefully with respect to the sources of information consulted and the procedures used in collecting information.

Data Sources:

Data source can be external or internal. An internal source includes previous studies and company records. External sources include the trade magazines and business reports. The research design will be examined time and again to determine the accuracy of data with regards to their ability in meeting the information needs. Apart from internal and external sources our next step will be to collect new data by means of personal interviews, focus group discussions and gathering data to meet the information needs will involve the interrogation consumers. The first step in data collection process is to look for the secondary data. These were the data that were developed for some purpose other than for helping to solve the problem at hand. My secondary data were collected from the report of Karvys Finapolis and the website of Karvy Ltd and Other Websites like moneycontrol.com, valueresearch.com etc. The data that are still needed after the search is completed will have to be developed specifically for the research project is known as primary data .An important source of primary data is survey research. My primary data were collected through a market survey with structured questionnaire. An exploratory of this type needs to be based on primary and secondary data that are readily available. It hardly implies a formal and right design as i have to change the focus or direction depending on the availability of new ideas and relationship among variables.

Data Collection Procedure:

The first Phase will involve a survey of consumers using a questionnaire administered by personal interview. The conclusion of the study is based on this survey. The secondary phase will be by discussion among the company people. In these two methods I am collecting the data that needed for my project report.

Primary data source ---

The data that is collected from the first hand information by the way of direct interview, observation and questionnaire.

Secondary data source----

Collection of data from company people and Finapolis.Research Approaches:The research approach was based on survey with regard to Metro city Kolkata to know the consumers behaviour, views, preferences and opinion about investments in different financial products and in share markets. It is the metro city I have covered some of the places in Kolkata.Research Instruments:

The questionnaires are prepared keeping in mind the objectives. There are many questions regarding different investments, satisfaction level in investments to know the customers views, preferences and opinion about different financial products and its benefits. I used the structured questionnaire through out the survey.Sampling Techniques: Sample unit: Collection of data was done from respondents of Kolkata city, those who are invested.

Sample size: The sample size chosen was 100 units.

Sample Method: Simple Random sampling was used in study to get an unbiased result and clear view of market. Contact Methods: Among various contact methods I chose personal interviewing method and In-depth interviewing method as it was beneficial in extracting additional information about the respondents. In Kolkata I went to different places to choose respondents randomly for an interview. .

Evaluation and Analysis of data:The information collected through personal interview on the basis of the questionnaires used during survey ,were tabulated and plotted through graphs and pie charts to represents the findings in a better way. The analysis was done by calculating the each questionnaire out of 100. Then the resulted was plotted through graphs i.e. pie charts were prepared.

Limitation during Survey:

It was quite unbalancing for me when I interviewed people. The difficulties I faced in doing so are

Most respondents were didnt like to spent time in filling the questionnaire as it was immaterial to them.

Many people I approached refused to waste their valuable time.

Some Insured didnt know the policy they had, though a few recalled the name of the Insurers.

A few people know in detail about the caps.

The most of the answers given by the respondent didnt base on their knowledge but their feelings towards the brand name of the company and benefits get by those products previously as they are not very much aware of all the criteria of investment in different products.Review of literature:I have referred these following books for my objective. From these books I have acquired some of the basic ideas regarding the consumer behaviour. How they react and what are their impressions and how they behave when they are faced upon the situation in the market. And especially this Kotller book helped me much for my project. Marketing Management- Philip Kotller

Consumer Behavior S. K. Batra

Consumer Behavior S Ramesh Kumar

Consumer Insight M. Stolen, A. Bond Consumer Behaviour Suja and Nair

Consumer behaviour Dell I Hawkins & other

Future Markets Parameswaran

Marketing genius Piter Fisk I have used the concept of all the books in my project and I have got my project work smooth and perfectly.

In its Bhubaneswar branch I was assigned my summer internship by Karvy.These are the business deals in that branch.

MARKETING CHANNELS OF FINANCIAL PRODUCTS BY KARVY:

This is the general process by which Karvy makes his business in Bhubaneswar branch. Here Karvy is the broker. It takes help of sub brokers and PFE (personal financial executives) to regulate its business.

ANALYSIS: I did my project with the help of the questionnaire given by my company guide. After getting the data from 250 people I segregated the data and took into account only of only 100 people who I really think are potential. I took into account of only that people who are with positive attitude while filling my questionnaire. I took maximum questionnaires from corporate and businessman as I want to know the real preference of corporate people in capital market. On that purpose I have collected data from many places of Bhubaneswar, in Karvy office and many other companies. I also collected the data from businessman and people who have maximum knowledge on share market

As many of them are busy most of them filled in hurry. I took into my project only those people who I thought gave the correct information. With the help of the questionnaires they filled I made my analysis part. I made my analysis separately for each and every field.

Customer surveyed on the basis of age group:AGE GROUPNO OF

Documents

A Study on Consumer Behavior Regarding Investment on Financial Instruments at Karvy Stock Broking Ltd