Analysis Ankit

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    CHAPTER - 5

    FINDING, CONCLUSION & RECOMMANDATIONS

    On surveying various people who are involved in share trading both as trader as well

    as investor, we found that brokerage is the most important factor on which people select / opt

    a broking house, followed by image , convenience in trading , customer service, features, tips

    & suggestion & AMC.

    What is interesting to note is the weighted contribution of these factors towards

    decision making. Although brokerage leads the pack it has only 19% contribution, and is

    closely followed by broking houses image with 18% and convenience in trade with 16%.

    AMC & tips & suggestions having only 10% contribution each towards decision making end

    up the pack.

    MOST IMPORTANT FACTOR WHILE SELECTING A BROKINGHOUSE

    AMC

    TIPS & SUGGESTION

    FEATURES

    CUSTOMER SERVICE

    CONVINIENCE(IN

    TRADE)

    IMAGE

    BROKERAGE

    FACTORS

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    On surveying ANGEL BROKING Customer why they opted for same, we got to

    know it was because of image ANGEL BROKING carries in the market, followed by its

    competitive brokerage, convenience in trade, features, customer service, tips and suggestions,

    and AMC.

    Angel Broking Continuous increases its growth percentage as shown in the Graph &

    becomes one of the Indias Topmost Online Trading Service Provider.

    CONCLUSION :-

    In online trading ANGEL BROKING have mainly competition with icicidirect.com,

    HDFCsec.com, 5Paisa.com India bulls. ANGEL BROKING comes at no. 2 retail broker. It

    has an advantage of being in this industry for more than 8 decades. It has launched its website

    in 2000 and was among the first player in the online share trading. The ANGEL BROKING

    has decided to spend its advertisement budget through four media i.e. Television, Print, Web

    and Outlets. Mr. Boman Irani was the first brand ambassador for ANGEL BROKING on

    television media. From the above analysis we can point out some points:-

    1. ANGEL BROKING account opening charges are little higher than other competitors.

    ANGEL BROKING is less flexible to cut down its account opening charges on the

    other side; some of the brokers are offering free account opening to High Net Worth

    customers.

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    2. The charges of Demat account are reasonable at 300 p.a. but India bulls are offering

    pool account with no Annual Maintenance charges.

    3.

    ANGEL BROKING provides trading in NSE, BSE and Derivatives. It also launched

    online Mutual Funds & Online IPO Bidding. Arbitrage facility is not available tocustomers.

    4. ANGEL BROKING is the only one that does not have any Demat transaction charges

    either on buying or selling.

    5.

    Unlimited toll free calls service is provided to customer in ANGEL BROKING.com.

    1. ANGEL BROKING accept offline payment from other banks also but icicidirect.com,

    HDFCsec.com clients have compulsion to open an online account.

    2.

    IPO Online service is better provided in ANGEL BROKING as compared to others.

    3. ANGEL BROKING is only broker in which no margin needs to keep.

    4. ANGEL BROKING research reports come in client e-mail at free of cost around 5-6

    times in a day. But some brokers charged for it and some provide it only at once in a

    day, while it is paid in Indiabulls, icicidirect.com and 5paisa.com.

    5. In brokerage, 5paisa.com have an edge on others with lowest brokerage .25% on

    delivery and .05% on intraday

    To sum up, we can say that computerization and automation are not to be avoided.

    Technology has been able to make the stock markets accessible to every individual. It has

    also led to positive developments in terms of reduced costs and fewer errors. But, as some

    experiences have indicated, IT cannot be applied as a panacea for all problems. Regulation

    and knowledge dissemination are still important. The use of technology should be preceded

    by a detailed study and assessment of all other alternatives. The key to successful use to

    technology is the appreciation of its constraints.

    RECOMMENDATION :-

    We suggest following measures, which ANGEL BROKING could take so as to take

    on heavy competition from INDIABULLS and ICICIDIRECT.COM

    1. To identify regions where promotions are required. ANGEL BROKING lacks

    visibility in northern region where as it is a well known name in western region. Even

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    then, its promotional campaign focuses on western region where as northern region is

    still waiting for promotional campaigns.

    2.

    Try to reduce cost, so that benefits can be passed on to customers. Senior managers at

    ANGEL BROKING keep on telling that it is difficult to reduce cost, because ofservices we provide. But the fact is, India being a price sensitive market, people at

    times go for monetary benefits rather than for long term non- monetary benefits.

    3. If charges cant be reduced because of costs involved, make the services customized,

    so that services are provided to only those customers who are willing to pay the price

    for services they are getting and let the other customers enjoy costs benefits without

    getting services.

    4.

    Concept of margin funding should be introduced, as more and more people are askingfor it.

    FINDINGS :-

    DEMOGRAPHIC FINDINGS

    AGE GROUP

    Age group(years) No. of respondents

    Below 20 0

    20-35 31

    36-50 78

    51-65 59

    Above 65 32

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    Figure : 1

    Out of total 200 respondents, below 20 years of age were none, 39% of the respondents

    falls in the age group of 36-50 years where as 29% were in the age group of 51-65 years and

    next 16% falls in the group of more than 65 years.

    JOB PROFILE

    Category No. of respondents

    Service 94

    Business 80

    Others 26

    0

    10

    20

    30

    40

    50

    60

    70

    80

    90

    Below 20 20-35 36-50 51-65 above 65

    No. of respondents

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    Figure : 2

    Out of total respondents, most of respondents were from service class and 40 % were

    during business and rest of the respondents includes retired person, other people, other

    professionals students etc.

    ANNUAL INCOME (IN LACS)

    Income group No. of Respondents

    Less than 1 lac 50

    1-5 lacs 93

    More than 5 lacs 57

    94

    80

    26

    0

    No. of respondents

    Service

    Business

    Others

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    Figure : 3

    Most of the respondents belong to the income group of 1-5 lakh followed by the

    respondents belong to income group of more than 5 lakh which is 28% of total respondents

    and rest of Respondents belonging to the income group below 1 lakh.

    EDUCATIONAL BACKGROUND

    Qualification No. of respondentsUnder graduate (U.G) 53

    Graduate 79

    Post graduate(PG) 55

    Others(O) 13

    50.00

    93

    57

    0

    No. of Respondents

    Less than 1 lac

    1-5 lacs

    More than 5 lacs

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    Figure : 4

    Most of the respondents were graduate and 26% were post graduate and rest 6% belong

    to other category.

    Q1. When the respondent were asked their preference of investment, is cash market ,

    derivatives market or both, the following respondents were obtained .

    Options No. of respondents

    Only cash/capital market 76

    Only derivative market 21

    Both 103

    53

    79

    55

    13

    0

    10

    20

    30

    40

    50

    60

    70

    80

    90

    Under

    graduate

    Graduate Post graduate Other

    No. of respondents

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    Figure : 5

    Out of 200 respondents amount 52% respondents their fund in cash and derivative

    market, 38% investment is only cash market and rest is derivative market.

    Q2.When the respondents were asked about the time period for which they are

    investing, the following responses were obtained.

    Time period No. of respondents

    Less than 1 year 251-5 year 97

    More than 5 year 78

    0

    20

    40

    60

    80

    100

    120

    Only

    cash/capital

    market

    only derivative

    market

    Both

    76

    21

    103

    No. of respondents

    No. of respondents

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    Figure : 6

    Out of total 200 respondents 12% respondents were new investors, 48% were investing

    for 1-5 year and rest was for more than 5 year.

    Q3.When the respondents were asked about proportion of income they invest in shares

    and securities, the following responses were obtained.

    Investment proportion No. of respondents

    Up to 5% 47

    5 to 10% 59

    10 to 25% 63

    More than 25% 31

    25

    97

    78

    No of respondents

    Less than 1 year

    1-5 year

    more than 5 year

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    Figure : 7

    When the respondents asked about the proportions of income they invest in shares and

    securities, it was found that most of the (32%) respondents invest 10-25% of their income,

    30% of respondents invest 5-10% and 24% of them invest up to 5% and rest more than 25%.

    Q4.When the respondents were asked trading frequency, the following responses were

    obtained.

    47

    59

    63

    31

    No. of respondents

    Up to 5%

    5to 10 %

    10 to 25%

    more than 25%

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    Figure : 8

    On analyzing the trading practices it was found that majority, 65% of the investors

    trade according to the market 25% trade daily followed by weekly traders 7%.

    Q5.When the respondents were asked about trading advice , the following responses

    were obtained.

    0

    20

    40

    60

    80

    100

    120

    140

    Daily Monthly Weekly According to

    the market

    49

    13

    7

    131

    No. of respondents

    No. of respondents

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    Figure : 9

    Regarding the decision of amount and investment area, 98 out of 200 takes the idea ontheir own and 37 on experts opinion, 35 on brokers advice, and 19 on friends advice.

    Q6.When the respondents asked whether any professional advice is available to them

    when required, the following responses were obtained.

    98

    37

    19

    35

    11

    0

    20

    40

    60

    80

    100

    120

    On your own

    idea

    Expert's option On friend

    advice

    Broker advice Other

    No. of respondents

    No. of respondents

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    Figure : 10

    Out of 200, 108 respondents said that they dont and professional advice, 73 said that

    they get it sometimes, and 19 of them get advice when needed.

    Q7.When the respondents were asked about the motive for making investment in

    capital market, the following responses were obtained.

    19

    108

    73

    No. of Responding

    Yes

    No

    Sometime

    Option Rank I Rank II Rank III

    Regular income in 113 27 60

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    Calculation of weight, (Rank I=3, Rank II=2, Rank =1)

    Option Rank I Rank II Rank III

    Regular income in the

    form of dividend/

    interest

    339 54 60

    Tax planning 165 52 119

    Capital gain 360 50 55

    the form of dividend/

    interest

    Tax planning 55 26 119

    Capital gain 120 25 55

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    Figure : 11

    On analyzing motives for investment in capital market it was found that capital gain

    was the most important factor that influences investment decisions followed by regular

    income and tax planning.

    Q8.When the Respondents were asked about the factors they consider while selecting a

    broker, the following responses were obtained.

    339

    165

    360

    54 52 50

    60

    119

    55

    0

    50

    100

    150

    200

    250

    300

    350

    400

    Regular income in form of

    divident/ interest

    Tax planning Capital gain

    Rank I

    Rank II

    Rank III

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    Option Rank I Rank II Rank III

    Brokerage 129 59 12

    Frequent payments &

    transfer of securities

    112 43 45

    Less advance margin 59 79 62

    Credit limits 65 46 89

    Personal Relations 79 24 97

    Calculation of Weight, (Rank I=3, Rank II=2, Rank III=1)

    Option Rank I Rank II Rank III

    Brokerage 387 118 12

    Frequent payments &

    transfer of securities

    336 86 45

    Less advance margin 177 158 62

    Credit limits 195 92 89

    Personal Relations 237 48 97

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    Figure : 12

    0

    50

    100

    150

    200

    250

    300

    350

    400

    Brokerage Frequent

    payments &

    transfer of

    securities

    Less advance

    margin

    Credit limits Personal

    Relations

    387

    336

    177

    195

    237

    118

    86

    158

    92

    48

    12

    45

    62

    8997

    Rank I

    Rank II

    Rank III