I would like to thank my Branch Manager for being a support throughout my Project work. Mr. Deepak Chaudhary has always encouraged me to stay focused towards my project no matter what the conditions are. I have furthermore to thank my respected Project Guide Dr. Renuka Sharma who gave and confirmed this permission and encouraged me to go ahead with my Project. She always guided me in the right direction whenever I asked her for help. I would also like to thank God for giving me the patience throughout my project and my parents who supported me and helped me in all ways.
Without all, I could not have successfully completed my project properly in time with adequate data and relevant substance in it. Thanking you, Mehak Mehta CUN120550046 3 Executive Summary This project is about creating a portfolio product that would help Angel Broking. We all know that stock market is a risky investment alternative for all but it is good if investor can make money out of it.
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The regulatory body for the stock market is SEBI who controls all the activities of the market on daily basis and try to do transaction in a legal way so as to avoid the scams and to protect the interest of the investors.
Now days there are many Portfolio managers and Fund managers who invest on the behalf of the investors and they assured them fixed rate of return on their investment in a particular period of time. They all applied various kinds of model to measure the risk available in the market and the tools to manage that risk. There are various kinds of risk which is mainly categorize in two parts 1. Macro level risk 2. Micro level risk I. Macro level risk :- It consist of Systematic and Unsystematic Risk. Systematic risk is that which cannot be reduced but Unsystematic risk can be controlled.
Micro Level risk:- It consist of various kinds of risk which are prevailing in the market like Business risk, Market risk, Liquidity risk, Exchange rate risk, Financial risk, Currency risk and Country risk The above are the broad categories of the risk in the market. As we can see from the recession that the global markets also have their impact on the Indian market because now a days companies are doing business at global level so the market of one country can affect the market of other countries also. So we cannot avoid the risk but we can manage the risk and minimize it.
In my project I have done the same thing by applying the various models or tools which are helpful to manage the risk while doing an investment. Purpose/Objective of the study:? ? The purpose of the study is to give a portfolio product to Angel Broking as per the needs of the population of Ludhiana region. Endeavour to create wealth over the medium to longer term through investments in equities, across market capitalization by focusing solely on the following:? To measure the risk available in the market, taking into consideration the Nifty 50 stocks.
To look deep into the fundamentals of the companies as well as the concerned industry. ? To calculate the expected return from the shortlisted stocks as well as from their concerned industry. ? To measure the risk/reward value of investors’ assets class choices 4 Research Methodology Used in the Project:Type of research project is Descriptive and Exploratory. To make a research project we need to see that whether there would be scope of this study or not, because if our study is not having scope then the whole work done will not be effective.
The scope of this study is there in the market because in today scenario everyone looks for the safe and risk free return but they don’t know how to manage the risk which is there in the market so by the help of this study and after seeing the relevance, the Financial managers or the investment companies can take benefit out of it. Because by this they will come to know about the tools to manage the risk and they will be able to sell more investment products because by using it they will be able to give safe return to the investors which will lead to an increase in their goodwill in the market.
Methodology used to making of this project is Descriptive research design. Once we decide with the type of research design we need also to know about the collection of data. I have used the secondary method to collect the data from the market. For this purpose different websites are being search out for the relevant information for making the project and various research paper and articles were also studied so as to get reference from those articles. Once I am done with the data collection and fundamental analysis, I then need to apply the tools.
In my project I have used mainly four tools BETA, CAPITAL ASSET PRICING MODEL (CAPM), STANDARD DEVIATION and SHARPE INDEX. Sharpe Index tells us the excess return we can generate from the investment. Beta tells about the volatility of the risk. CAPM tells us about the Expected return on the stock, and Sortino ratio tells us that out of the stocks which are giving negative return which will be the stock that will give positive return in near future. Thus by applying all these models we come to know that we can also minimize our risk but for that analysis should be done so as to enjoy the safe return on the investment.
Findings:- After applying all the above models I have come to know the Beta of my portfolio, expected return that my portfolio will generate. CAPM help us to know that how much would be expected return on the stock and then we can compare the actual return with the expected return and invest accordingly. Beta helps us to know the volatility of risk in the market and then we can do risk return tradeoff so as to invest in best stock as per our analysis. And Result of Sharpe ratio helps us to compare with the expected return and then do the Sortino ratio if required. 5 Table of Contents I. Introduction to the corporation.
Business carried on by parent company and group companies along with brief history, promoters & vision Introduction to the parent firm Main competitors Number of employees Organization Structure Study of functioning of all the departments of the company SWOT Analysis Financial Statement Analysis Trend Analysis Strategies adopted Profitability Analysis Review of Literature ? ? ? Review of articles Need of the study Objectives of the study III. Research Methodology adopted IV. Details of actual work undertaken V. Interpretation & Analysis VI. Conclusion and Suggestions ? ? VII. Findings of the study
Recommendations of the study Glossary VIII. Bibliography 6 Chapter-1 Introduction to the corporation and company 7 Business carried on by the parent company 8 Angel Broking Registered Office Corporate Office G-1, Ackruti Trade Center, Road No -7, 6th Floor, Ackruti Star, Central Road – MIDC, MIDC, Andheri (E), Mumbai – 400 093. Andheri (E), Mumbai – 400 093. Tel: (022) 2835 8800 / 3083 7700 Tel: (022) 3935 7600 9 About the company Angel Broking’s tryst with excellence in customer relations began in 1987. Today, Angel has emerged as one of the most respected Stock-Broking and Wealth Management Companies in India.
With its unique retail-focused stock trading business model, Angel is committed to providing ‘Real Value for Money’ to all its clients. The Angel Group is a member of the Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and the two leading Commodity Exchanges in the country: NCDEX & MCX. Angel is also registered as a Depository Participant with CDSL. Vision To provide best value for money to investors through innovative products, trading/investments strategies, state of the art technology and personalized service. Motto To have complete harmony between quality-in-process and continuous improvement to deliver exceptional service that will delight our Customers and Clients. 10 CRM Policy.
A Customer is the most Important Visitor on our premises. He is not dependent on us, but we are dependent on him. He is not an interruption in our work. He is the purpose of it. He is not an outsider in our business. He is part of it. We are not doing him a favour by serving him. He is doing us a favour by giving us an opportunity to do so. ” – Mahatma Gandhi Business Philosophy ? ? ? ? Ethical practices & transparency in all our dealings Customers interest above our own Always deliver what we promise Effective cost management
Quality Assurance Policy We are committed to providing world-class products and services which exceed the expectations of our customers, achieved by teamwork and a process of continuous improvement. 11 Evolution of Angel Group ? MR DINESH THAKKAR, CHAIRMAN & MANAGING DIRECTOR, ANGEL GROUP, started this Journey as a SUB-BROKER in 1987 with 3 Employees and 25 Clients. 1997-2003 ? Dec’97: Incorporation of Angel Broking ? July’98: Angel Research Division started ? Mar’02: Web-enabled back office software developed 2004 ? Apr’04: Incorporation of Commodities Broking ? Sep’04: Launch of internet trading platform 2005
Awarded prestigious “Major volume driver” award 12 2006 ? ? ? ? Jul’06: PMS function launched Sep’06: Commences MF and IPO distribution Oct’06: Awarded “Major volume driver” award Dec’06: Crossed 2,500 business associates 2007 ? Oct’07: “Major volume driver” award for third consecutive time ? Nov’07: Crossed 1. 5 lakh mark in DP account ? Dec’07: IFC acquired 12. 35% stake in Angel Group 2008 ? ? ? ? ? Jan’08: Commences insurance distribution Feb’08: Ranked 1st by NSE for Registered intermediaries May’08: Third party distribution business ramped up Sep’08: Ranked 1st on NSE for largest sub-broker network
Major volume driver” award for the 4th consecutive time 2009 ? Jan’09: Ranked 1st on NCDEX on the basis of turnover ? May’09: Awarded the “Best Retail Broking House” and the “Broking House with Largest Distribution Network” by Dun & Bradstreet ? Two Analysts won the ET Starmine Analyst Award ? “Major volume driver” award for the 5th consecutive time 2010 ? Nov’10: “Major volume driver” award for the 6th consecutive time 13 2011 ? Mar’11: Awarded the Best Contribution in Investor Education & Category Enhancement of the Year – Angel Broking Ltd and Broker with Best Commodity Research of the Year – Angel Commodities Broking Pvt.
A very strong and dedicated Research and Advisory desk. ? One of the highest success ratios in both technical and fundamental calls. ? An excellent IT infrastructure in place with over 18144 trading terminals and 610 VSATs with a server uptime of 99. 9%. ? 100% Retail centric focus and total commitment towards retail customers. ? Some of the best fund managers running our Portfolio Management Services to enable clients to minimize their risk, enhance return and diversify their portfolios. ? Training Programs to upgrade the knowledge base & competency levels of our employees, channel partners & even our end customers.
Understanding client’s risk & return profile Offering the right blend of sector and stock exposure Giving dedicated Investment Advisors Giving a choice of different schemes to suit every individual investor preferences Catering to Individuals, HUFs, Corporate, NRIs, Trusts ? Angel Commodities ? ? ? ? Personalized services through branches & regional hubs Trading & Relationship Mgmt. Services in Bullion, Base Metals, Energy & Agri. futures Opportunities in hedging & portfolio diversification, speculation & arbitrage Training & Educational Seminars on Commodities ? Angel Currency Futures ? ? ? ?
Comprehensive coverage on Currencies (‘Rupee’ to ‘Euro’, ‘Dollar Index’ to ‘Yen’). Reports covering in-depth fundamentals of the currencies. Latest economic data releases with their likely impact, along with “Technical levels” Comprehensive reports on currencies ideally suited for any investor / trader. ? Angel Gold ? ? ? ? Personalized Investment Advisory Portfolio Restructuring & Continuous Monitoring Guidance from Experienced Research Team Periodic Group Meetings with Investors. ? Specialized Products Margin Funding ? Facility to allow clients to take higher exposure 20 ? ? ? Instant Liquidity for Clients
Margin is deposited in Cash as well as Collaterals Enabling Clients grab Earning Opportunity Pre-Paid Brokerage ? ? ? ? ? ? Zero Account Opening Charges Attractive Brokerage Rates Free DP AMC for 1 year Assured gifts worth thousands with every account Easy & Fast Recharge Free Financial Investment Application with every account ? Depository Services ? ? ? ? ? No physical instruction required for the client’s sell obligations Lowest transaction charges in the country Acceptance & execution of instruction on fax A combined monthly ‘Bill-Transaction-Holding cum Ledger’ statement Efficient pledge mechanism ? Value Added Services
Request response SMS Example – DP Holding, Pool Holding, Ledger update etc ? Insurance ? ? ? Products to meet the triple objectives of risk coverage, investment and tax planning Assessment of your Insurance needs after proper risk profiling A wide array of individual life cover plans to meet your Protection, Savings and Retirement needs ? Mutual Funds ? ? ? ? ? Tie- ups with all major AMCs Dedicated Relationship Manager for Business Partners Exclusive MF Research Reports by Angel (Daily/ Weekly/Monthly Mutual Fund Reports) MF Portfolios as per Investors Financial Goal
Common Gateway for all Mutual Funds related queries ? Loans, IPO and Fixed Deposits Products distributed by Angel include: Unsecured Loans ? Personal/Business Loans/Credit Cards Secured Loans ? Home Loans/ Loan Against Properties ? Loan Against Securities / Gold IPO – Distribution, Advisory and Helpdesk Fixed Deposits NHB Term Deposits 22 Distribution Model Short form Full form Details CSO Central Statistical Organization Mumbai RO Regional Offices 24 Branches Branches 190 SB Sub-Brokers 10000+ Clients Clients 1900000+ 23 Business carried on by the particular firm 24 Angel Broking Regional Office.
Rewards & Recognition 27 E-broking Unique Online Trading products customized to suit different Investment / Trading needs – ? ? ? Angel Investor Angel Diet Angel Trade Back-Office Online Client Details includes – ? Ledger balances ? Cash Deposits with Angel ? Securities Holdings ? ? Charges levied/paid in the client’s account Last auction / close-outs effected ? DP Holding for the last 3 transactions 28 Advisory Intraday calls BTST calls Long term calls Angel Trading 29 Positional calls Main Competitors Major players in the region are as follows:- 30 History of broking firms Brief history of some broking firms –
The birth of Karvy was on a modest scale in 1981. It began with the vision and enterprise of a small group of practicing Chartered Accountants who founded the flagship company, Karvy Consultants Limited. ? They started with consulting and financial accounting automation and carved inroads into the field of registry and share accounting by 1985. ? Since then, karvy utilized its experience and superlative expertise to go from strength to strength, to better their services, to innovate, diversify and in the process, evolved as one of India’s premier integrated financial service enterprise.