Karvy Stock (Finance)

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    DECLARATION

    I Sandeep Yadav declares that the project report titled AWARENESS OF

    MUTUL FUND is based on my project study. This project report is my original

    work and this has not been used for any other purpose anywhere.

    Sandeep Yadav

    Name of the Student

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    PREFACE

    For management student theoretical knowledge as well as practical knowledge

    is must. Management of modern business requires an appreciation of

    multidisciplinary concept and in depth knowledge of specific analytical tools,

    geared to the solution of real life problems. No doubt every situation is unique

    but a set of theoretical tool of knowledge, itself based on empirical foundation,

    can help in developing the mechanism for handling such situation. Therefore,

    the MBA curriculum has been designed to provide practical exposure to the

    future manager. The project study is necessary for the fulfillment of MBA

    curriculum, it provide an opportunity to the researcher to understand industry

    with special emphasis on the development of skills in analysis, interpretation of

    practical problem through application of management.

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    ACKNOWLEDGEMENT

    I express my sincere thanks to my project guide, Mr. ASHISH SINGH,

    RESIONAL HEAD [CAT] Karvy Fortune for guiding me right from the inception

    till the successful completion of the project. I sincerely acknowledge him for

    extending his valuable guidance, support for literature, critical reviews of project

    and the report and above all the moral support he had provided to me with all

    stages of this project.

    I would also like to thanks the supporting staff MANGAL SINGH

    Department for their help and cooperation throughout our project.

    Sandeep Yadav

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    EXECUTIVE SUMMARY

    The project titled A Study of AWARNESS OF MUTUAL FUND being carried

    out forKARVY STOCK BROKING LTD.

    Karvy operates in various financial products and services like Consultancy,

    Stock Broking, Mutual Funds, Insurance, Registrar and Transfer Agent,

    Research, Map in etc.

    The evaluation of financing planning has been increased through decades,

    which is best seen in customer rise. Now a days investment of saving has

    assumed great importance.

    According to the study of the Market, it is being observed that markets are doing

    well in investments like, Mutual funds, Shares etc. In near future a proper

    financial planning is required to invest money in all type of financial product

    because there is good potential in market to invest.

    The main objective of this project is to know the current scenario of investment

    and the peoples awareness of various instruments available for Tax planning

    and Personal Financial Advising facility provided by the KARVY STOCK

    BROKING LTD.

    IT and Retail sector have been given more emphasis for the study of the

    project because it is the only sector where all types of age group, Income class

    and different level of people are represented.

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    TABLE OF CONTENTS

    S.

    NO.

    Descriptions Page

    no.

    1. Introduction to the industry 7-23

    2. Introduction to the Organization 24-34

    3. Research Methodology

    1. Title of the Study

    2. Duration of the Project

    3. Objective of the Study

    4. Types of Research

    5. Collection Method and Sample Size

    6. Scope of Study

    7. Limitation of Study

    35-44

    4. Facts and Findings 45

    5. Data Analysis and Interpretation 46-54

    6. Swot Analysis 55-56

    7. Conclusion 57

    8. Recommendation and Suggestion 58

    9. Appendix 59-60

    10. BIBLIOGRAPHY 61

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    INTRODUCTION TO THE INDUSTRY

    The Indian financial services industry is in a process of rapid transformation.

    Reforms are continuing as part of the overall structural reforms aimed at

    improving the productivity and efficiency of the economy. The role of an

    integrated financial infrastructure is to stimulate and sustain economic growth.

    The Indian economy is estimated to have grown by 7.4 per cent in 2009-10.

    According to the latest Central Statistical Organisation (CSO) data, financial

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    services, banking, insurance and real estate sectors rose by 9.7 per cent in

    2009-10.

    Overall, the US$28 billion Indian financial sector has grown at around 15

    percent and has displayed stability for the last several years, even when othermarkets in the Asian region were facing a crisis, according to Ministry of

    External Affairs, Government of India. This stability was ensured through the

    resilience that has been built into the system over time. The financial sector has

    kept pace with the growing needs of corporate and other borrowers. Banks,

    capital market participants and insurers have developed a wide range of

    products and services to suit varied customer requirements. The Reserve Bank

    of India (RBI) has successfully introduced a regime where interest rates are

    more in line with market forces.

    Indias financial services sector will enjoy generally strong growth during coming

    years, driven by rising personal incomes, corporate restructuring, financial

    sector liberalization and the growth of a more consumer-oriented, credit-oriented

    culture. This should lead to increasing demand for financial products, including

    consumer loans (especially for cars and homes), as well as for insurance and

    pension products.

    According to data from Bloomberg, India's market cap as a percentage of world

    market cap was 2.8 per cent as on December 31, 2009.

    In 2009, there were 21 IPOs that raised US$ 4.18 billion as compared to 36

    IPOs in 2008 that raised US$ 3.62 billion.

    Further, according to ICICI Securities, Indian companies are likely to raise up toUS$ 42.43 billion from the primary market over the next three years. According

    to Madhabi Puri-Buch, Managing Director and CEO, ICICI Securities' nearly

    US$ 20 billion will be raised from the initial public offer (IPO) market this fiscal

    (2010-11), of which around US$ 8.49 billion would be from the public sector and

    an equal amount from private companies.

    Moreover, on the back of an increase in the participation of agriculture and other

    commodities, the 23 commodity exchanges posted 50 per cent year-on-year

    growth in turnover in the April-February period of 2009-10, to touch US$ 1.53

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    trillion, according to the commodity markets regulator, Forward Markets

    Commission (FMC).

    The average assets under management of the mutual fund industry stood at

    US$ 170.46 billion for the month of May 2010, as compared to US$ 135.58

    billion in May 2009, according to the data released by Association of Mutual

    Funds in India (AMFI).

    FINANCIAL MARKETS

    A Financial Market can be defined as the market in which financial assets are

    created or transferred. As against a real transaction that involves exchange of

    money for real goods or services, a financial transaction involves creation or

    transfer of a financial asset. Financial Assets or Financial Instruments

    represents a claim to the payment of a sum of money sometime in the future

    and /or periodic payment in the form of interest or dividend.

    Money Market- The money market ifs a wholesale debt market for

    low-risk, highly-liquid, short-term instrument. Funds are available in thismarket for periods ranging from a single day up to a year. This market is

    dominated mostly by government, banks and financial institutions.

    Capital Market - The capital market is designed to finance the long-

    term investments. The transactions taking place in this market will be for

    periods over a year.

    Forex Market - The Forex market deals with the multicurrencyrequirements, which are met by the exchange of currencies. Depending

    on the exchange rate that is applicable, the transfer of funds takes place

    in this market. This is one of the most developed and integrated market

    across the globe.

    Credit Market- Credit market is a place where banks, FIs and NBFCs

    purvey short, medium and long-term loans to corporate and individuals.

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    Constituents of a Financial System

    FINANCIAL INTERMEDIATION

    Having designed the instrument, the issuer should then ensure that these

    financial assets reach the ultimate investor in order to garner the requisiteamount. When the borrower of funds approaches the financial market to raise

    funds, mere issue of securities will not suffice. Adequate information of the

    issue, issuer and the security should be passed on to take place. There should

    be a proper channel within the financial system to ensure such transfer. To serve

    this purpose,

    Financial intermediaries came into existence. Financial intermediation in

    the organized sector is conducted by a widerange of institutions functioning

    under the overall surveillance of the Reserve Bank of India. In the initial stages,

    the role of the intermediary was mostly r

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