PROJECT SUBMITTED TO TRIDENT ACADEMY OF CREATIVE TECHNOLOGY IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF

BACHELOR OF BUSINESS ADMINISTRATION

By

Jyoti Jawahar Jena

(Registration Number:09BBA216) (2009-2012)

External Guide: Mr. Amit Mishra Unit Manager Studies,TACT BMA Wealth Creators Limited. Bhubaneswar

Internal Guide: Ms.Evelina Mohapatra Faculty of Management

Chandaka Industrial Estate Bhubaneswar-751024

DECLARATION

I here by declare that the project report entitled Customers perception towards investment in Equity Market with reference to BMA Wealth Creators Limited, submitted in partial fulfilment of the requirements for the degree of Bachelor of Business Administration to TRIDENT ACADEMY OF CREATIVE TECHNOLOGY, is my original work and not submitted for the award of any other degree, diploma, fellowship, or any other similar Title or prizes .

Place: Bhubaneswar Date:

Jyoti Jawahar Jena Reg No: 09BBA216

CERTIFICATE

This is to certify that the project entitled Customers perception towards investment in Equity Market with reference to BMA Wealth Creators Limited is the bonafide research work carried out by Mr. Jyoti Jawahar Jena , student of TRIDENT ACADEMY OF CREATIVE TECHNOLOGY,Bhubaneswar, during the year 2011-2012, in partial fulfilment of the requirements for the award of the Degree of Bachelor of Business Administration and that the project has not formed the basis for the award previously of any degree, diploma, associate ship, fellowship or any other similar title.

Place: Bhubaneswar Date: Signature of the Guide

ACKNOWLEDGEMENT
I take this opportunity to express my deepest gratitude to all those people, without those spontaneous support, guidance, encouragement and understanding, this project would never had reached completion. It was my privilege to work with B M A W e a l t h C r e a t o r s L t d . I am indebted to M r . A m i t M i s h r a (Unit Manager) who acted as philosopher and guide through all the stages of completion of the project. Mere words of gratitude will never suffice to their valuable guidance, patience and faith shown in my work. I would also like to avail this opportunity to express my sincere thanks and profound gratitude to my project guide, whose valuable knowledge and guidance have maid me complete this project successfully. I acknowledge the timely help extended by all my colleagues and all the unmentioned names from the concerned field. It has been rightly quoted that each milestone turned over, is an outcome of mans sincere endeavors. Though, at the start of any ambitious project, one always encounters certain difficulties. However, overcoming those difficulties, completing the project as well as making it a success, greatly depends on the encouragement, inspiration and help given by many people. We too, without the encouragement, inspiration and by taking help of others, would not have been able to complete our research project, successfully.

This research project was a great source of learning and a good experience as it gives us an opportunity to correlate the theoretical knowledge which we had gained from our teachers and well wishers, with practical facts and aspects. Though fulfiling the ambitions one always encounters with certain difficulties, however overcoming these difficulties and making the project a scuccess entirely depends upon the encouragements, inspirations and help rendered by the staff members of the organization.

Jyoti Jawahar Jena

CERTIFICATE
This is to certify that the project work entitled Customers Perception towards Investment in Equity Market with reference to BMA Wealth Creators Limited is an authentic record of the project work done by JYOTI JAWAHAR JENA of TRIDENT ACADEMY OF CREATIVE TECHNOLOGY during the period 2011 in this organization under my guidance and supervision for the partial fulfilment of the course, Bachelor of Business Administration.

Date:

Mr. Amit Mishra Unit Manager BMA Wealth Creators Limited, Bhubaneswar.

Executive Summary

The study titled Customers perception towards investment in Equity Market with reference to BMA wealth creators Ltd. was carried out with the aim of locating the usefulness of investment planning while making any investment decision. It is seen in India that, most of the investors do not possess any technical knowledge of investment. Financial planning means achieving a financial target with a given time frame. It covers many things like desired degree of financial independence, retirement objectives, children education, taxes, and cash flow problems, not having a savings strategy, etc. In other words, the project is all about analysing the benefits of investment planning before making an investment decision. The main tool that is decided to collect data and reactions is a questionnaire. Then those data is analyzed using some statistical tools like Pie chart and Bar Diagram. Through my study, I have found out that the investors reacted late to the market and as a result- many of them fallen into huge losses due to market volatility. Again, investments are not done only for investment purpose. Some investors invest to save tax as the only purpose behind it. Bank FDs are also a popular method of investment. Now while analyzing the values and services that drives the clients of a company to stay with them are mainly correctness of information and timely attention to them. Relationship also plays a major role in this regards. About concluding the report, it is demonstrated how a good investment planning can do wonders. It is recommended in the report that the company should take due initiatives to develop the knowledge of its clients which could be done through organizing events like investors meets.

I hope BMA Wealth Bhubaneswar will recognize this as well as take more 7

references from this project report.HR Department has been given more emphasis for the study of project because it is the only sector where all type of age group,Income class and different level of peole are represented.

According to the market study, Bhubaneswar is one of the potential market for the equity trading because the number of account holder is very less in the city due to some drawbacks of this facility. The people do not want to avail this facility and the current users of the account are also not using this facility. If the company removes their drawbacks then it is sure the company will get great response from the customer. Investment is nothing but the saving of an individual, which is remind after satisfying day-to-day necessity. He invests it somewhere to earn some returns onthe saving. The investors has many choices to invest his money e.g. SavingDeposit, Fixed Deposit, Insurance Policy, Company Deposits, Capital Market,Properties and many other among all the option he have to choose one or two toinvest his money and take care of not loosing the money in whatever he invest.

I have visited number of new investors who want to invest the market, the questionnaire, and formal meeting and normal decision with the clients helped me for collecting valuable information for the study of market and investors. It is also useful for me to reach to the conclusion of the project. Most of them are in the age bracket of 30 40 years, I think this age group people are very enthusiastic to do anything and want to achieve things in shorter span of time.

I hope BMA Wealth Creators will recognize this as well as take more references from this project report is to know the drawbacks of their euity trading account and the need and wants of the customer.

The company can get the knowledge of other organizations facility which the BMA Wealth Creators can offer to the customers. The company can get the knowledge 8

that which is most potential income and occupation group of customer for offering trading account/demat account. After analyzing feedback the conclusion has been made that bhubaneswar is one of the potential market for customer but company has to give special emphasis on customers demand for the accounts and services. Therefore they attracted towards stock market. Because of volatile stock marketgives higher return as well as losses to the investors. The end result I found after doing the whole exercise is that the

investorsexpectations are very high they want more returns from short and smallinvestment.

TABLE OF CONTENTS

Subject Items

Page No.

Cover page Declaration Internal Guide Certificate Acknowledgement External certificate Executive Summary Table of Contents Introduction Literature Review / Theoretical Background Company / Product Profile Brief Profile of Products / services of the above said company Data Analysis and Interpretation Research analysis Summary and Conclusion Questionnaire Bibliography

1 2 3 4 6 7 10 11 12 16

31 38 48 50 53

10

INTRODUCTION
A stock market or equity market is a public entity (a loose network of economic transactions, not a physical facility or discrete entity) for the trading of company stock (shares) and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately. The size of the world stock market was estimated at about $36.6 trillion at the start of October 2008. The stocks are listed and traded on stock exchanges which are entities of a corporation or mutual organization specialized in the business of bringing buyers and sellers of the organizations to a listing of stocks and securities together. The largest stock market in the United States, by market capitalization, is the New York Stock Exchange (NYSE). In Canada, the largest stock market is the Toronto Stock Exchange. Major European examples of stock exchanges include the Amsterdam Stock Exchange, London Stock Exchange, Paris Bourse, and the Deutsch Brse (Frankfurt Stock Exchange). In Africa, examples include Nigerian Stock Exchange, JSE Limited, etc. Asian examples include the Singapore Exchange, the Tokyo Stock Exchange, the Hong Kong Stock Exchange, the Shanghai Stock Exchange . In Latin America, there are such exchanges as the BM&F Bovespa and the BMV. In India Bombay Stock Exchange (BSE) benchmark, Sensex & National Stock Exchange (NSE), the 50-stock Nifty index. The market in which shares are issued and traded, either through exchanges or over-the-counter markets. Also known as the stock market, it is one of the most vital areas of a market economy because it gives companies access to capital and investors a slice of ownership in a company with the potential to realize gains based on its future performance.

11

Relevance of the Study:

Learn How to Invest Discover How to Buy and Sell Stocks. Uncover All the Investing Secrets. Invest Profitably. Determine Your Financial Future. Learn Important Equities Rules. You Need Expert Financial Advice. Invest in Learning because Knowledge IS POWER. Define YOUR Investing Objectives.

Objective:
Customer perception towards Equity market basic objective . That is funding to companies listed on that stock exchange. Companies float their IPOs on exchange and in return give buyers right of ownership and annual dividends (sometimes twice a year). Companies sell their right of ownership to traders /investors /FIIs etc and in return generate capital for their companies. Stock Exchanges also attract lots of FIIs which is good for country economy.

12

Equity sharing: Equity sharing, also known as shared ownership or in the US as housing equity partnership (HEP), allows a person to purchase a share in their home even if they cannot afford a mortgage on the whole of the current value. It is generally used in affordable housing, providing a "third way" of land tenure between home ownership and renting. There are various detailed methods to implement equity sharing, and it is implemented in over a hundred community land trusts in the United States. The remaining equity share may be held by the house builder, by a private investor or by a landlord such as a housing association. In some models the resident pays rent on that share. Brokerage Firm: A brokerage firm, or simply brokerage or broker in context, is a financial institution that acts as a stock broker. Brokerage firms serve a clientele of investors who trade public stocks and other securities Stock Broker A stock broker or stockbroker is a regulated professional broker who buys and sells shares and other securities through market makers or Agency Only Firms on behalf of investors. A broker may be employed by a brokerage firm. Services provided by Stock Brokers: A transaction on a stock exchange must be made between two members of the exchange. An ordinary person may not walk into any stock exchange and ask to trade stock. Such an exchange must be done through a broker. There are three types of stock broking service.

Execution-only, which means that the broker will only carry out the client's instructions to buy or sell. Advisory dealing, where the broker advises the client on which shares to buy and sell, but leaves the final decision to the investor. Discretionary dealing, where the stockbroker ascertains the client's investment objectives and then makes all dealing decisions on the client's behalf. Similar roles

Roles similar to that of a stockbroker include investment advisor, and financial advisor. A stockbroker may or may not be also an investment advisor, and vice versa.

13

Acting as a principal Stockbrokers also sometimes or exclusively trade on their own behalf, as a principal, speculating that a share or other financial instrument will increase or decline in price. In such cases the term broker makes little sense and the individuals or firms trading in principal capacity sometimes call themselves dealers, stock traders or simply traders. There are many other types of traders within capital markets, for example trading within the foreign exchange market. Stock Market Index: A stock market index is a method of measuring a section of the stock market. Many indices are cited by news or financial services firms and are used as benchmarks, to measure the performance of portfolios such as mutual funds. Addendum to the definition An index may also be considered as an instrument (after all it can be traded) which derives its value from other instruments or indices. The index may be weighted to reflect the market capitalization of its components, or may be a simple index which merely represents the net change in the prices of the underlying instruments. Most publicly quoted stock market indices (like the two quoted below) are weighted. Types of indices Stock market indices may be classed in many ways. A 'world' or 'global' stock market index includes (typically large) companies without regard for where they are domiciled or traded. Two examples are MSCI World and S&P Global 100. A 'national' index represents the performance of the stock market of a given nation and by proxy, reflects investor sentiment on the state of its economy. The most regularly quoted market indices are national indices composed of the stocks of large companies listed on a nation's largest stock exchanges, such as the American S&P 500, the Japanese Nikkei 225, the Russian RTSI and the British FTSE 100. The concept may be extended well beyond an exchange. The Wilshire 5000 Index, the original total market index, represents the stocks of nearly every publicly traded company in the United States, including all U.S. stocks traded on the New York Stock Exchange (but not ADRs or limited partnerships), NASDAQ and American Stock Exchange. Russell Investment Group added to the family of indices by launching the Russel Global Index.

14

Equity sharing in the United Kingdom: There are two forms of equity sharing in the UK, public sector and private sector. Public sector equity sharing implies some form of taxpayer subsidy and is seen by government as a useful tool of social policy, for example in allowing more first time buyers to access property ownership. The government in England facilitates shared equity chiefly through the Homes and Communities Agency (HCA), currently under the banner of HomeBuy. This covers a range of low cost home ownership options; all aim to help households earning up to 60,000 p.a. to buy a home that they could not otherwise afford. Some are targeted at first-time buyers and key workers. Private sector shared equity or, as it is sometimes known, investor shared equity, operates quite differently in that there is no element of taxpayer subsidy. Instead, third party investors provide the difference between the buyer's deposit and (typically) a 75% mortgage, in return for an equity stake in the property and a rent. These schemes are run over 5 or 10 years (sometimes with a 'hardship' extension), meaning that at the end of the relevant period, the owner has to buy out the equity stake at the relevant percentage of the then market value. There is generally no penalty on early redemption or partial buy-backs. Thus, equity sharing can be seen as a step up to full ownership of a property.

15

BMA Group Profile

16

BMA GROUP PROFILE

In the 1920s, Mr Bhuramal Agarwalla, founder of the BMA Group, had made a foray into the obscure energy industry with a mission to assume eminence in the coal mining business. With his vision and character, he managed to place the business on a higher pedestal. By adhering to bi-pronged philosophy of risk-taking and fostering an ethic-based environment, he cautiously promoted excellence through quality to meet the expectations of both domestic and international clients. Taking inspiration from this, the group has scaled many heights venturing into Refractorys, Smelting, Ferrous Alloys, and Coke is leading by example. In the age of Second Generation Reforms, the company has successfully passed down its mantle to the Fourth Generation. The group has successfully fused traditional methods with modern mantra of management to come out with flying colours. The group has taken multifarious initiatives, some of which have already yielded dividends. We are manufacturers and exporters of ferrous alloys, refractorys etc. The holistic production process combines a perfect balance between product availability, manufacturing procedure, quality supply chain and a geographical dispersion of marketing and operations. Over the years the BMA Group has become a single reliable source for resources and a Group you can count on for delivery and quality. Service to the customer goes beyond the sale of products by providing technical advice for economic and efficient applications and maintenance for products supplied by the group companies. Group Companies are: National Refractories (Prop. Snowtex Udyog Ltd) The Behar Potteries Ltd. Anjanery Ferro Alloys Ltd. Maithan Alloys Ltd. Maithan Smelters Ltd. Premium Fuels Corporate Social Responsibility should be Refractories Unit Refractories Unit Ferro Alloys Unit Ferro Alloys Unit Ferro Alloys Unit Metallurgical Coke Unit the inherent motive of West Bengal West Bengal Jharkhand West Bengal Meghalaya West Bengal every business

house. The Group BMA takes its commitment seriously and has imbibed this responsibility into its mission. It actively participates in community development 17

through three ways: philanthropy, civic leadership & public policy and grass root efforts. The company provides generous support & leadership to a wide range of organizations that cater to cultural, civic, environmental, health and human services.

(Our highest quality of Refractory Products are widely used in the industries.)

Different ventures of BMA Group

1. Refractories
Companies under Refractories: National Refractories (Prop. Snowtex Udyog Ltd) - An ISO 9001:2000 company The Behar Potteries Ltd.

2. Ferro Alloys
(We manufacture wide range of Ferro alloys to meet the need of each buyer.) Companies under Ferro Alloys: Anjaney Ferro Alloys Ltd. Maithan Alloys Ltd.- An ISO-9001:2000 company Maithan Smelters Ltd.

3. Coal & Coke

(We produce good quality hard Coke and metallurgical Coke.) Companies under Coal and Coke

18

Premium Fuels ( Prop. Snowtex Udyog Ltd.)

4. Steel Product
( Manufacturing & exporting of stainless steel & allied products that are tested to comply with international standards.)

5. Export and Import

(Primarily engaged in import & export of products like : Alumina Silicate Bricks, Special Refractories, Low Carbon Silico Manganese & more) Companies under Export and Import BMA International Our Export and Import Items: 1. Refractory

Alumina Silicate Bricks Insulation Bricks Monolithics

Special Refractories 2. Ferro Alloys

High Carbon Ferro Manganese High Carbon Ferro Manganese(LowPhos) Medium Carbon Ferro Manganese Low Carbon Ferro Manganese High Carbon Silico Manganese Medium Carbon Silico Manganese

6. Financial Services
(Focused on offering diversified financial services to corporate & individuals.)

19

BMA Financial Services primarily focuses on offering diversified financial planning services to corporate & individuals. Our spectrum of services include financial planning, advising, executing, monitoring of investments & more. With our team of financial consultants & experts we ensure to deliver customized solution to all our clients. BMA Wealth Creators - The A to Z of Wealth Creation Techniques As Wealth Creators, we work towards understanding your financial goals and risk profile. Our expertise combined with thorough understanding of the financial markets Extending services.

results our

in

appropriate to

investment all your

solutions

for

you. needs.

expertise,

fulfil

investment

We offer a wide range of financial services and solutions through our varied

Wealth Management Services Investment Advisory Services Securities Broking Equities and Derivatives Distribution of Financial Products Marketing of Equity and Mutual Fund IPO

Commodities Broking Our expertise in each of these areas, help you achieve your financial objectives.

We provide full service functions, which include:

Planning Advising Executing Monitoring your investments

Our corporate entities are represented by BMA Stock Broking Pvt. Ltd. It holds corporate membership in National Stock Exchange Ltd, Bombay Stock Exchange Ltd. and Central Depositories Securities Ltd. BMA Commodities Pvt. Ltd.

20

It holds corporate membership in commodities exchange of NCDEX and MCX. It is also is SEBI approved AMFI registered Mutual Fund advisory and intermediary. Time to shed your worries. In the present day scenario, there are way too many options that can be rather confusing. The key is to decide well. Making the correct choice will ensure the realization of all your dreams. With BMA, you can at least forget about your financial worries. We with the correct knowledge of the market and years of experience behind us will help you invest your money in the right avenues. So that you can rest assured as your money grows. All you have to worry about now is ways to utilize the wealth and create the perfect picture of happiness for you and your loved ones.

21

Wealth Creators Corporate Profile

22

CORPORATE PROFILE

BMA WEALTH CREATORS LIMITED

A premier financial services organisation providing individual and corporate with customized financial solutions. We work towards understanding your financial goals and risk profile. Our expertise combined with thorough understanding of the financial markets results in appropriate investment solutions for you. At Wealth Creators we realize your dreams, needs, aspirations, concerns and resources are unique. This is reflected in every move we make with and for you. We have deep appreciation for the Value of building an everlasting relationship with YOU. BMA Wealth Creators Pvt., Ltd. was formerly known as BMA Stock Broking Pvt., Ltd. and changed its name in July 2007 Our financial services corporate entities are represented by BMA WEALTH CREATORS LTD. - which holds corporate membership in National Stock Exchange Ltd, Bombay Stock Exchange Ltd. and Central Depositories Securities Ltd BMA COMMODITIES PVT. LTD. - This holds corporate membership in commodities exchange of NCDEX and MCX. It is also is SEBI approved AMFI registered Mutual Fund advisory and intermediary. We inherit the legacy of BMA group which has been one of the dominant entities in Ferrous and Ferro Alloy industry in India. The BMA Group has created its niche in by promoting successful ventures in the fields of coal mining, refractory, steel and Ferro alloy. The strive to achieve excellence and dynamic growth has been possible through optimum mix of technology, customer orientation, best business practices, forging alliances, high quality standards and proactive business culture. A premier 23

financial services organisation providing individual and corporate with customized financial solutions. Our expertise combined with thorough understanding of the financial markets results in appropriate investment solutions for you. employees in all over India. Currently we've presence in 1650 location PAN India. Presently company has 5,000

Management Team of BMA Wealth Creators Limited

Managing Director and Chief Executive Officer Director

Anubhav MISSON & Bhatter VISION Agarwal, Avinash

Sudhanshu

COO Head of Operations and RMS and Director Vice President and Head of Franchisee Development

Agarwal. Saikat Ganguly Shiv Kumar Damani Asit Kumar Ghosh

MISSION - To be a premier financial supermarket providing integrated investment services.

VISION - To provide integrated financial services building investor wealth and confidence.

24

Sales and Distribution of BMA Wealth Creators

Services of BMA Wealth Creators Limited

Wealth Management Services
Investment Advisory Services Securities Broking Equities and Derivatives Distribution and Marketing of Equity and Mutual Fund IPO Commodities Broking Depository Participants

Life and General Insurance Services

25

Wealth Services Management BMA Wealth Creators Pvt., Ltd. operates as a financial services organization in India. It provides individual and corporate financial and investment solutions. They give their customer path so that they can efficiently increase their wealth. Expert team of BMA Wealth Creators always suggest their customer so that they can invest their money in such a way that it will make their wealth healthier. Investment Advisory Services Under BMA Wealth Creators Limited, 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. This is made possible by the expertise it has gained in the business over the years. Covering the latest of market news, trends, investment schemes and research-based opinions from experts in various financial fields. Securities Broking Equities and Derivatives BMA Wealth Services Pvt. Ltd is also gives the service of Security Broking, Equities and derivatives for their customer. Distribution and Marketing of Equity and Mutual Fund IPO Company also distributes different financial instruments like Demat Account and also does the marketing of equity, mutual fund and IPOs for their customers. Depository Services Depository is an organisation which holds your securities in electronic (also known as book entry) form, in the same manner as a bank holds your money. Further, a depository also transfers your securities without actually handling securities, in the same day as a bank transfers funds without actually handling cash. BMA Wealth Creators Limited gives their customer depository services also.

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Commodities Broking Commodity trading is an investing strategy that involves the buying and selling of goods that are classified as commodities. There are many similarities between commodity trading and the trading activity involved with stocks. One key difference has to do with the difference between what is traded. Company also gives the services of commodity broking services for customers who want to trade in commodity.

Insurance Services BMA Wealth Creators Pvt. Ltd also gives the insurance services to their customer. Company has tied-up with different insurance companies for insurance services. Company gives Life Insurance and General Insurance both.

Under all these services BMA Wealth Creators deals with

Equity/Share BMA Wealth Creators deals with different equity and shares of different companies. Total equity capital of a company is divided into equal units of small denominations, each called a share. For example, in a company the total equity capital of Rs 2,00,00,000 is divided into 20,00,000 units of Rs 10 each. Each such unit of Rs 10 is called a Share. Thus, the company then is said to have 20,00,000 equity shares of Rs 10 each. The holders of such shares are members of the company and have voting rights. Experts of the company suggest people to invest their money in a right equity or share so that they can get good return from that. Debt Instrument Company also deals with debt instrument. Debt instrument represents a contract whereby one party lends money to another on pre-determined terms with regards to rate and periodicity of interest, repayment of principal amount by the borrower to the lender. In the Indian securities markets, the term bond is used for debt instruments issued by the Central and State governments and public sector organizations and the term debenture is used for instruments issued by private corporate sector.

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Derivative Derivative is a product whose value is derived from the value of one or more basic variables, called underlying. The underlying asset can be equity, index, foreign exchange (forex), commodity or any other asset. Derivative products initially emerged as hedging devices against fluctuations in commodity prices and commodity-linked derivatives remained the sole form of such products for almost three hundred years. The financial derivatives came into spotlight in post-1970 period due to growing instability in the financial markets. However, since their emergence, these products have become very popular and by 1990s, they accounted for about two third of total transactions in derivative products. Commodity A market that transacts business with commodities of all nature referred as commodity markets. Commodity market does not necessarily require you to buy or sell the commodities but you can even exchange them. Commodity market works on certain principles. Firstly the trading has to be done only for standard products. Secondly the transaction takes place through a future contract. According to this contract the commodities will be sold or bought on a future date. However the price at which they are sold will be the price agreed during the contract. Similarly commodity marketing also makes use of another type of contract called spot contract. In this contract the goods are to be transferred as soon as the contract is made. Mutual Fund A Mutual Fund is a body corporate registered with SEBI (Securities Exchange Board of India) that pools money from individuals/corporate investors and invests the same in a variety of different financial instruments or securities such as equity shares, Government securities, Bonds, debentures etc. Mutual funds can thus be considered as financial intermediaries in the investment business that collect funds from the public and invest on behalf of the investors. Mutual funds issue units to the investors. The appreciation of the portfolio or securities in which the mutual fund has invested the money leads to an appreciation in the value of the units held by investors. The investment objectives outlined by a Mutual Fund in its prospectus are binding on the Mutual Fund scheme. Mutual fund is for the customers who does not have the knowledge about share or stock market. In that case customer gives the investment amount, what they wish to invest in share market, to the

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company and company invest the amount on behalf of the customer in market. Experts of the company decides where to invest the money for their customer Demat Account Company also provides their customer De mat Account. The term De mat, in India, refers to a dematerialised account for individual Indian citizens to trade in listed stocks or debentures. Company provides customer Demat Account facility who wants to transact in share market. The Securities Exchange Board of India (SEBI) requires the investor to maintain a Demat account. In a demat account shares and securities are held in electronic form instead of taking actual possession of certificates. A Demat Account is opened by the investor while registering with an investment broker (or sub broker). The Demat account number which is quoted for all transactions to enable electronic settlements of trades to take place. Access to the demat account requires an internet password and a transaction password as well as initiating and confirming transfers or purchases of securities. Purchases and sales of securities on the Demat account are automatically made once transactions are executed and completed. The demat account reduces brokerage charges, makes pledging/hypothecation of shares easier, enables quick ownership of securities on settlement resulting in increased liquidity, avoids confusion in the ownership title of securities, and provides easy receipt of public issue allotments. It also helps you avoid bad deliveries caused by signature mismatch, postal delays and loss of certificates in transit. Further, it eliminates risks associated with forgery, counterfeiting and loss due to fire, theft or mutilation. Demat account holders can also avoid stamp duty (as against 0.5 per cent payable on physical shares), avoid filling up of transfer deeds, and obtain quick receipt of such benefits as stock splits and bonuses. Fees Involved in Demat Account There are four major charges usually levied on a demat account: Account opening fee, annual maintenance fee, custodian fee and transaction fee. All the charges vary from DP to DP.

Account Opening Fee Annual Maintenance Charge

29

Custodian Fee Transaction Fee

Account-Opening Fee Depending on the DP, there may or may not be an opening account fee. BMA Wealth Creators and some private banks, such as ICICI Bank, HDFC Bank and UTI Bank, do not have one. However, players such as Globe Capital, Karvy Consultants and the State Bank of India do so. But most players levy this when you re-open a demat account, though the Stock Holding Corporation offers a lifetime account opening fee, which allows you to hold on to your demat account over a long period. This fee is refundable. Annual Maintenance Charge Company also charges maintenance charge to maintain Demat Account with the company. This is charges as yearly basis. This is also known as folio maintenance charges, and is generally levied in advance. Custodian Fee This fee is charged monthly and depends on the number of securities (international securities identification numbers ISIN) held in the account. It generally ranges between Rs 0.5 to Rs 1 per ISIN per month. DPs will not charge custody fee for ISIN on which the companies have paid one-time custody charges to the depository. Transaction Fee The transaction fee is charged for crediting/debiting securities to and from the account on a monthly basis. The fee also differs based on the kind of transaction (buying or selling). Some DPs charge only for debiting the securities while others charge for both. The DPs also charge if your instruction to buy/sell fails or is rejected. In addition, service tax is also charged by the DPs. In addition to the other fees, the DP also charges a fee for converting the shares from the physical to the electronic form or vice-versa. This fee varies for both demat and remat requests. For demat, some DPs charge a flat fee per request in addition to the variable fee per certificate, while others charge only the variable fee.

30

Apart from all these charges one more charge is involved in share trading and that is known as: Brokerage Company gives the facility to their customer to sell or purchase stock and other products of the company. For this facility given by the company they charged some commission from the customer. This commission is generally known as brokerage. And also company, who deals with share and all other similar products, generally known as broking houses. Rates comparison of BMA Wealth Creators from other companies:1. Brokerage Rate BMA Wealth Creators takes the brokerage as advance for 12 months. As per the trading doing by the customer their brokerage is being reduced from the advance brokerage given by them. These rates are different in case of advance brokerage chosen by the customer. BMA Wealth Creators offers flexibility of low brokerage as your trade volumes go high to higher.

You Pay (RS.)

Variable Brokerage Delivery 0.40 0.30 0.25 0.20 0.15 0.10 0.05 Intraday 0.04 0.03 0.025 0.02 0.015 0.01 0.005

Time Limit.

1,000 2,000 5,000 10,000 20,000 25,000 50,000

12 12 12 12 12 12 12

Months Months Months Months Months Months Months

Features: Flexibility to choosing slab rate as per your investment pattern. Time valid for 12 months. Trading allowed both in Equity and Commodity.

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Intradaycharg of B es MA as per different slabs

0.045 0.04 0.035 0.03 0.025 0.02 0.015 0.01 0.005 0 1000 2000 5000 10000 20000 25000 50000 Intraday charges of BMA as per different slabs

Brokerage rate of other companies:32

Broking Houses

Brokerage for Delivery

Brokerage for Intraday trading

SBICAP Securities Sharekhan Motilal Oswal 5 paisa Angel Broking ICICI direct Indiabulls HDFC Securities UTI Securities Religare Reliance Money Geogit Indiainfoline

0.50% 0.03% - 0.50% 0.30% - 0.50% 0.25% - 0.85% 0.50% 0.75% 0.25% - 0.50% 0.50% 0.80% 0.20% - 0.30% 0.01% 0.30% 0.50%

0.10% 0.03% - 0.10% 0.03% - 0.15% 0.07% 0.02% - 0.03% 0.15% 0.05% - 0.10% 0.15% 0.15% 0.02% - 0.03% 0.01% 0.03% 0.10%

Minimu m Monthl y Charge s NIL NIL

card system -

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Companies who offer variable brokerage rate, in graph representation I have taken the lower rate.

1. Account Opening Charge 34

Name of the Broking House BMA Wealth Creators Reliance Money Sherekhan India Bulls ICICIDirect.com SBI HDFC Securities GEOJIT FINANCIAL SERVICES Ltd 5 Paisa Religare (3 Types of Account)

Account Opening Charge NIL Rs.750 Rs.750 Rs.900 Rs.750 RS.500 Rs.799 RS.650 Rs.500 Plan - R-ACE Rs.299 Min Margin Required Rs. 5,000 Plan R-ACE Lite Rs. 499 Min Margin Required Rs. 5,000 Plan R-ACE Pro Rs. 999 Min Margin Required 10,000 Rs. 740 Rs. 499 Rs. 499 Rs. 555 Rs. 750 Rs. 499 Rs. 350

Angel Broking UTI Securities IDBI Paisa Builder India infoline Kotak Securities SMC Indian Way 2 Wealth

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2. Annual Maintenance Charge Name of the Company BMA Wealth Creators Angel Broking Karvy Geojit HDFC Securities ICICI Direct Annual Maintenance Charge 1st year NIL 2nd year onwards Rs. 300 1st year NIL 2nd year onwards Rs. 300 Rs. 250 Rs. 300 1st year NIL 2nd year onwards Rs. 500 1st year NIL 2nd year onwards and Rs. Rs. 500 450 (Paper (Email Statement) IDBI Paisa Builder Kotak Securities Motilal Oswal Reliance Money Religare SBI Sherekhan Ventura Statement) 1st year NIL 2nd year onwards Rs. 350 Rs. 360 1st year NIL 2nd year onwards Rs. 100 Rs. 200 Rs.250 Rs. 400 1st year NIL 2nd year onwards Rs. 300 1st year free 2nd year onwards Rs. 400

Distribution channel of BMA Wealth Creators:BMA Wealth Creators limited generally distribute their product through: Agents Company reach their customer through their agents. This is one of the most important distribution channel through that company distribute their product to the customer.

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Annual Maintenance Charge

600 500 400 300 200 100 0 Karvy ICICI Direct Geojit SBI IDBI Paisa Builder Angel Broking Motilal Oswal Reliance Money BMA Wealth Creators HDFC Securities Kotak Securities Sherekhan Religare Ventura Annual Maintenance Charge

Apart from age Company also gives franchisee to distribute their product more widely. In Bhuwaneswar in one franchisee is in Shahid Nagar and in one franchisee is situated in Puri Road.

Research Methodology
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RESEARCH OBJECTIVES
1. To know the customers awareness about different financial product available in the Equity market. 2. To know the type of investment carried out by customers.

RESEARCH METHODOLGY:
Research Methodology is a very organized and systematic medium through which a particular case or problem can be solved. It is analytical, descriptive and quantitative research where the comparison between the different types of investment made by customers in the capital market. The methods of collecting information employed were mainly primary data collection method.

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RESEARCH DESIGN:
The Research design of this project is descriptive in nature. The sole objective was to know the characteristics that consumer consider while investment in capital market. Further researcher also wants the role of influential factors in consumer decision making process.

SAMPLING PLAN:
An integral component of a research design is sampling plan .Specifically, it addresses three basic functions: Whom to survey? (The Sample Unit) How many to survey? (The sample data) How to select them? (The sampling Procedure)

Making a census study of entire Bhubaneswar market was impossible on the account of time and money. Hence sampling became inevitable. The chalked out sampling plan is as follows: Sample Unit: The consumers of middle and upper middle class. Sample Size: 50 consumers Sampling Procedure: Area sampling procedure was adopted in which the researcher selected sample from different areas of Bhubaneswar. Making an overall Bhubaneswar market was impossible for the researcher. The Researcher took the help from the database of customers maintained by BMA Wealth Creators Ltd.

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Locations from where the samples were collected

Unit-1 Market Big Bazaar Shopping Mall Sahid Nagar Satya Nagar CRP Sqaure Residential Apartments

SOURCES OF DATA:
For the research work the researcher has obtained data from two main sources. Primary data: Structured non-disguised questionnaire, interview Secondary data: Journals, magazines, newspaper, web sites etc.

QUESTIONNAIRE EVALUATION:
The modes of questionnaire evaluation used by the researcher are Tabulation:

Through tabulation the responses are shown in a table against total no of respondents. Percentage Analysis The Percentage analysis is a simple technique of counting no of response and finding its % from its total. Graphical Bar Representation of Relevant data: The Responses are shown in bars plotted against the decided responding factors. 40

LIMITATIONS:
More respondents did not like to spend time in filling the questionnaire as it was immaterial to them Some people did not know the benefits of these products. Most of the answers of the respondents did not base on their knowledge but just replied because to fill the questionnaire. Many people did not respond because their hesitation about investment. Many people are unaware about the company name.

DATA ANALYSIS AND INTERPRETATION:

What is your profession? Service (27), Business (12), Students (11), Others ()

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Respondents Income level per annum

<1,00,000

(11),

1,00,000-1,50,000(23),

1,50,000-3,00,000(10),

>3,00,000(6)

Family Members

2(25),

3(15),

Over 3(10)

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Do you invest?

Yes (41),

NO (9)

D you Inv o est?

45 40 35 30 25 20 15 10 5 0 Yes No 9 Do you Invest? 41

In which sector you prefer to invest? Private (18), Public (32)

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In which sector you preferto invest

In
40 30 20 10 0 Private Public 18 32 In which sector you prefer to invest

which place you prefer to invest? Equity(4) Bank Deposit(20) Insurance(10) Mutual Fund(10) Post Office Savings() ULIP(6) Bonds()

Others()

If you are investing in Insurance then which in which Insurance sector you are investing?

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Life Insurance (33),

General Insurance (17)

Since how

If you areinvestingin Insurancethen whichin which Insurancesector you areinvesting ?

17 Life Insurance 33 General Insurance

many years you are investing? Below 1 Year (21), 5 to 7 years (3), 1 to 5 years (17), Over 7 Years (0)

S ince howm yearsyou are any investing ?

0

3 Below 1 year 1 to 5 years 5 to 7 Years Over 7 Years

What
17

21

do you want while investing? Return (25), Safety (16)

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If you are not investing then what is the reason? No trust over market (2), Prefer to invest in bank(6)

Lack of knowledge (1),

If you are not investingthen whatis the reason?

1 2 6

Lack of Knowledge No trust over m arket Prefer to invest in bank

Are you aware about BMA Wealth Creators Limited in Bhubaneswar. Yes (23), No (27)

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12. If yes then how do you come to know about the company? Advertisement(7), News Paper(1), Friends/Relatives(15)

If yes, thenhowdo y com to know ou e aboutthe com pnay

7 Advertisem ent 15 1 News Paper Friends/Relatives

Findings and Conclusion

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While answering the question regarding income level many people feel uneasy. As per the survey I got that out of 50 people 41 people are investing and 9 people are not investing. Within this 30 people 32 says that they prefer to invest in the public sector rather than private sector. Out of 50 people 40% people would like to invest in Bank, 20% people prefer to invest in Insurance and Mutual Fund, whereas 8% people prefer to invest in equity and 12% people would like to invest in ULIP.

Out of 41 people who invest approx 61% people want good return out of their investment and 39% people want safety about the money they have invested

Out of 9 people who dose not invests in the market out of them 66% people prefer to invest in bank rather than market and 23% people do no have trust over the market and rest 11% people do not have the knowledge about investment.

About the awareness about the company I got that out of 50 people 46% people are aware about the company and rest people are not aware about the company.

Suggestions
Make awareness camps to make people know about the various financial plans. Instead of just selling financial products, an effort should be taken to make the people understand what the benefits of such an investment are.

Arrange for camps by taking appointments from the people who actually wanted to undergo a training program on self-financial planning.

BMA Wealth Creators has to clarify all the rule and regulation of proper handling of
eruity trading at the time of opening of account to the customers. Company has to keep a

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consistency in their in rule ans regulation in trading division and if they make any change in any rule and regulation. Company has to inform the customers in time.

Company has to give some alternate facility to those customers who have account and they are using it, so that more and more people will involve in it, by which these customers can pay more attention on their account. Today every customer has less time and this facility will give enough scope to that customer who have demat account in BMA Wealth Creators but they are not using trading.

BMA Wealth Creators should start and conduct education program with technical analysis. The company should start some promotional activities for spreading the awareness in customers and many times the customers become defaulter due to less information is given by the securities company to the customers. At that time a negative impression of company will goes to those customers and it hampers the customer loyalty. BMA Wealth Creators should try to make their loyal customer bacause loyal customer will give profit to the organization directly or indirectly.

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Questionnaire
Sir, I am a student of, TRIDENT ACADEMY OF CREATIVE TECHNOLOGY, Bhubaneswar doing a research work on the title Customers Perception towards Investment in Equity market with reference to BMA Wealth Creators Ltd. for academic purpose. Kindly fill up the following questionnaire, which will be used only for academic purpose and will not be divulged to anybody under any circumstances. Thank You

Name__________________________________________ Age____________

Address ________________________________________________________

Contact Number __________________________________________________

1. What do you do?

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Service Business Students Others Please Specify_____________________

2. Annual Salary _______________ 3. Family Member ______________ 4. Do you invest? Yes No

5. In which sector do you prefer to invest? Private Public

6. In which place you prefer to invest? Equity Mutual Fund ULIP Bank Deposit Post Office Savings Bonds Insurance Others Please Specify _________________

7. If you are investing in Insurance then which in which Insurance sector you are investing? Life Insurance General Insurance

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8. Since how many years you are investing Below 1 Year 1 to 5 Year 5 to 7 Year Over 7 Year

9. What do you want while investing? Return Safety 10. If you are not investing any where what is the reason? Lack of Knowledge No trust over market Prefer to Invest in bank

11. Are you aware about BMA Wealth Creators in Bhubaneswar? Yes No

12. If yes then, how do you come to know about the company? Advertisement Newspaper Friends/Relatives

Bibliography
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BOOKS Financial management by D.Chandra Bose. Financial markets & services by Gordon & Nataranjan . Security analysis & portfolio management by S.Kelvin. Financial institution & market by L.M BHOLE .
http://demataccount.com/fees-comparison/ http://demat.sbi.co.in/uploads/files/Revised-schedule-of-charges.pdf http://www.tracenotes.com/reports/brokers-india.html http://www.tracenotes.com/reports/brokers-india.html http://www.bmawc.com/AboutUs.aspx?id=1 http://www.bmawc.com/AboutUs.aspx?id=2&opt=2 http://www.bmaind.com/group-profile.html http://www.bmaind.com/exportimport.htmlhttp://www.bmaind.com/steelproducts.html http://www.bmaind.com/financial-services.html http://www.flame.edu.in/pdfs/fil/presentations/FIL_Stock%20Market.pdf

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