To Study Swot Analysis for Portfolio Management Services Offered by Sharekhan Ltd.

SUMMERY In to sidereal days bypass letter purlieu many of stockbrokers offers premenstrual syndrome (Portfolio guidance function). While observing the business environment of rouebrokers the main business is how they offer low brokerage and disclose service to the thickenings. In this context an attempt is do to study the gussy up abbreviation of premenstrual syndrome (Portfolio perplexity operate) offered by SHREKHAN Ltd. Which racylights what ar the Strengths, Weaknesses, Opportunities and Threats of premenstrual syndrome (Portfolio vigilance operate) offered by SHREKHAN Ltd. as comp ar to other competitors offered this scheme.Also overhear the interview of coke clients and observe what the expectations head-nigh the PMS (Portfolio Management service) argon offered by SHREKHAN Ltd TABLE OF CONTENTS ? Acknowledgments ? Abbreviations .. ? An Executive Summary .. ? diligence Profile ? party Profile.. ? securities industry share of allot khan ? asylum to dr ift ? Hypothesis of the Project ? Objectives Project ? Limitations of the Project ? look for methodology ? falsifiable Analysis .. ? Conclusion ? Bibliography. Abbreviation AMCAnnual Maintenance thrills. BSEBombay broth permutation. DPDepository participant. IPOInitial Public Offer. MCXMulti Commodity Exchange. MTManagement Thesis. NAVNet Asset Value. NCDEX field of study Commodity and derivatives Exchange. NCFM content Stock Exchange Certification In Financialservices. NFONew Fund Offer. NSENational Stock Exchange. PMSPortfolio Management Services. SEBISecurity Exchange Board of India.Indus travail Profile By 1830s business on corporate stocks and shares in shoreing concern and Cotton presses took place in Bombay, thither were just now half a dozen brokers recognized by banks and merchants during 1840 and 1850. In 1860-61 the act of brokers increased to somewhat 200 to 250. In 1895, the Stock Exchange acquired a premise in the same street and it was inaugurated in 189 9. thusly, the Stock Exchange at Bombay was combining. trans sufficeion Pattern of the Indian Stock Market occupation in Indian stock exchanges is limited to listed securities of popular limited companies.They are broadly divided up into 2 categories, namely, Specified securities (forward list) Non-specified securities ( bills list). A member broker in an Indian stock exchange seat act as an agent, secure and tell on securities for his clients on a commission alkali. National Stock Exchange (NSE) The National Stock Exchange was incorporated in 1992 by Industrial increase Bank of India, ICICI, all Insurance Corporations, selected commercial banks and others. Trading at NSE potentiometer be classified below two broad categories (a) Wholesale debt mart and (b) Capital grocery store placeplace.Wholesale debt market operations are similar to coin market operations institutions and corporate bodies enter into high value proceedings in financial instruments such(prenom inal) as g overnment securities, treasury bills, public sector unit bonds, commercial paper, certificate of deposit, etc. on that point are two kinds of players in NSE 1. Trading members and 2. Participants. Recognized members of NSE are called work members who craftsmanship on behalf of themselves and their clients. Participants include art members and large players like banks who take get off settlement responsibility.Indias oldest and first stock exchange is Bombay Stock Exchange which is constituted in 1875. More than 6,000 stocks listed in BSE. Totally there are 22 stock exchanges in India. They are located in Ahmadabad, Bangalore, Calcutta, Chennai, Delhi etc. There is besides a National Stock Exchange (NSE) which is located in Mumbai. There is excessively an Over the Counter Exchange of India (OTCEI) which allows listing of picayune and medium sized companies. The regulatory agency which oversees the functioning of stock markets is the Securities and Exchange Board o f India (SEBI), which is also located in BombayOverview of Company Sharekhan is a firm, which is workings under SSKI (S. S. Kantilal Ishwarlal Securities Ltd. ). SSKI was founded in 1922. SSKI is One of Indias Oldest Brokerage Houses Having Eight Decades of envision into ? Institutional Broking ? Investment Banking ? Retail Broking It is one of the Founding members of the Stock Exchange, Mumbai and pioneer Institutional Broker. SSKI Entered into Retail Broking in 1985. Share khan is the Retail Broking fortify of the BIG 80 Years old organization i. e. of SSKI and Sharekhan is the Brand ca-ca given to its Retail Business.SSKI carries out its Retail Broking Activities under Sharekhan Brand Name. Sharekhan Outlets act as Full Service Investment Solutions Provider, providing you wide range of services like ? Equity & Derivatives Trading on NSE and BSE ? Online Trading ? Commodities Trading on MCX & NCDEX ? Portfolio Management Services ? Depository Services ? IPO Services ? Wide Range of Customized search merchandises ? Uni get Service Standards Offerings of the Sharekhan Sharekhan offers both Offline and online handicraft card.But now a days it mostly concentrates on online concern count with which a client stack buy and share shares in an instant from any part of the globe trough website. It does not take into narration any casing of physical restriction of button to the broker for carrying out a transaction or any showcase of settlement of payment. It facilitates the node a speedy and hassle innocuous transaction. Share khans harvest-time represents of a 4-in-1 concept, which integrates D-mat direct Trading Account Bank Link Dial-N-Trade For doing a trading of shares allone need D-mat A/C. In his D-mat A/C one can keep his shares.Then Sharekhan submits a Trading A/C. through and through this trading account, a Sharekhan customer can directly conveying his farm animals from his savings account i. e. from bank account to Sharekha n to his trading account without any paper work. He can buy and sell shares from the website and also view the market prices of the shares he vocations on the marchesinal. Sharekhan. com allows trading at present solitary(prenominal) on NSE. BSE trading allow for be unmindfully operational. To open an account a customer requires filling up a form consisting of 12 agreements, a crack size photograph, a residential proof, a photo id proof and a cheque drawn of respective amount in favor of S.S. Kantilal Ishwarlal Securities Pvt. Ltd. & From 22 March, 2007cheque is drawn in favor of Sharekhan Ltd. itself. After opening an account with Sharekhan, a customer go forth be given User id, social station password and trading password, which will enable him to access his account and make out. Products of SHAREKHAN Sharekhan offers 2 types of products according to the volume- found requirements of the togors that are as follows CLASSIC greenback This account allows the client to t rade through the website and is suitable for the retail investors. Here supreme scripts that can be shown on the terminal are unless 25. Also the technical foul charts are not available. Its a JAVA BASED APPLET, which allows trading only through website and see latest prices of the scripts of your choice which is attached below. This account also allows trading in Derivatives. The lifetime registration vote down for this account is Rs. 750 and there is no constraint of minimum turnover. SPEED TRADE ACCOUNT o This is ideal for active principals who transact frequently during days trading session to capitalize on intra-day price give-up the ghostments. Speed trade is Internet-based application based software, which is available on a CD, which provides e verything a trader needs on one screen, thereby, reducing the time required to follow up a trade. o Speed trade offers a tick-by-tick update on stock price movements with market depth and intra-day chart and lets the client d o his own stock/technical analysis. o While the Lifetime the boot for this account is Rs. one hundred0 /- with a minimum brokerage of Rs. cl0 /- to be generated from each one quarterly. OFF LINE SERVICES- ? In this Dmats A/C is open in Rs 350/- ? In this trader has to come in office for trading. Bank fellowship Sharekhan has affiliation with 8 banks, which allows its customers to enjoy the installation of instant credit and transfer of depots from his savings bank account to his Sharekhan trading account. The affiliated banks are as follows ? HDFC BANK ? UTI BANK ? CITI BANK ? ICICI BANK ? OBC BANK ? amount of bills BANK ? INDUSLAND BANK ? IDBI BANK DIAL-N-TRADE It is also an exclusive service available to all Sharekhan customers for trading in shares via the telephone. On dialing the toll free number 1800-22-7500 the customer will be directed to a tele-broker who will buy or sell shares for him. After Hour Orders Sharekhan customers also enjoy the facility of placing order s even after the trading hours, and the orders are executed as currently as the market opens. Brokerage- It is one of the important things, which are observe by the customer while opening a D-mat A/C. For Intraday proceeding they charge 0. 05 % on each leg Transaction. For Delivery Transactions they charge 0. 50 % on each leg Transaction. & For Derivatives Transactions they charge 0. 05 % on each leg Transaction. Trade in Commodity Sharekhan also trade in commodities like Bullion Gold / Silver and Agricultural commodities through Sharekhan Commodity Pvt.Ltd. which are a wholly owned subsidiary of its prove SSKI. Research Team of Sharekhan Research and in-depth knowledge of markets provide better than speculations or reacting to rumors. Research team provides knowledge to their customers about market condition. In forenoon they provide Eagle Eye which tells about how the market will be in whole day. In afternoon they provide High noontide which tells that up to that time how was the market and what about the remaining time what will be the condition of the market. After the market they analyze the market summer-blooming of the whole day and give idea about next day market.Mobile-N-Trade facility Now Sharekhan is providing the facility that their customers can do trading with the alleviate of their mobile handset. For that purpose they remove to pay some extra charge to activate that facility. Importance of the research to the Organization 1) The organization gets the warlike discipline about the pricing strategy of their competitors. 2) Through that they can establish their new pricing strategy to gain competitive improvement. 3) They came to know the effects of victimisation the pricing strategy in the market. view of order SHAREKHAN Limited Cross Land, 1204/22, J M Road, Opposite Shambhaji Park,Shivajinagar, Pune, 411005 forebode No. 020 25520002 Way to Share Khan (JM Road, Pune) Products of Sharekhan- 1) Stock broking (NSE,BSE) 2) F & O broking (Future and option) 3) PMS (Portfolio Management Services) 4) Commodity trading 5) Insurance 6) Mutual fund 7) Pan card 8) IPO (Initial public offer) Sharekhan Services Sharekhan, one of Indias leash brokerage houses, is the retail arm ofSSKI. With over 510 share shops in one hundred seventy cities, and Indias premier online trading portal www. sharekhan. com, our customers enjoy multi-channel access to the stock markets. IntroductionThe project assigned is TO Study pulverization Analysis For Portfolio Management Services Offered By SHAREKHAN Ltd. In JM Road, Pune. The purpose of project is to understand Portfolio Management Services, its function, price involved in and types of Portfolio Management Services. And also study competitors PMS Services in this means that to help the company in its day-to-day work. I worked with the company as a anxiety trainee in SHAREKHAN ltd. Hypothesis 1. hatful those have large excess money sakeed in investiture in PMS. 2. Retail investors are also now take invade in this scheme. 3. PMS scheme does not have much stupor on sales revenue of SHAREKHAN. OBJECTIVE ? To study Portfolio Management Services Offered By SHAREKHAN Ltd. To understand Portfolio Management Services and its importance. ? To study various types of Portfolio Management Services ? To know about the Portfolio Management Services Offered by competitors of SHAREKHAN Ltd ? To understand and know various terms employ in and process used in Portfolio Management Services in market. ? Make the SWOT analysis of Portfolio Management Services offered by SHAREKHAN Ltd. LIMITATIONS While completing this project following limitations are occurred ? Graphical Constraint ? Wrong Mind Set about Share Market ? Lack of awareness ? Lack of Money ruleology This project is Descriptive type of the project.In this project I considered only the part of pricing strategy of the organization, and I also studied t he national of my Management Thesis from angle of 360 degree. This project comes under the Formal Research in which objectives are clearly defined and where researcher gathers whole information about all aspects of the project. There is a formal procedure to yield research I followed following steps of methodology to conduct the research, Identifying & defining Problem Planning the Research Design Selecting a Research Method Selecting a Sampling Procedure Data Collection Evaluating the Data Preparing the Research Report Sources of the Information While collecting the data for project two types of Sources are used. 1. Primary sources In this, data is poised directly from respondents using questionnaire, direct observation & interview techniques. So for this purpose I visited 150 people in the JM Road, Pune. I interviewed them and asked them various questions related to my project and try to find out the actual result 2. Secondary sources In this type of data appeal I used the information which is already collected by some other person or in printed form before I collected. Sources of secondary data include websites, books, Internet, Journals and also the pamphlets, and the broachers made by the company for their advertisement, etc. I used above methodology & data sources for my project by following steps What is PMS (Portfolio Management Services)? Meaning of PMSThe word portfolio operator a set or group or combination of securities held by and investor. And the word management means to conduct or manage in a proper way. Thus it means managing of share in a proper way expecting the take a chance and return. Portfolio Management is the process of selecting a bundle of securities that will provide the drop organization a maximum yield for a given level of danger or alternatively ensure minimum gamble for a given level of return. A portfolio is defined a s the conglomerate set of ownership rights to financial assets in which the investor wishes to inv est. Portfolios are, thus, composed of securities. It means manages your money by fund manager. It just like Invest your money in PMS, sit back and do nothing. Advantages of investing in PMS V/s Mutual Fund You have greater control over the asset allocation, whereas it is automatic in a mutual fund. The portfolio can be customized to suit your attempt-return profile The portfolio manager has relatively greater flexibility to move in and out of cash as and when required depending on the market view. Typically, charges are lower and more transparent in PMS vis a vis a Mutual Fund Holdings not collisioned by ledger entry / exit of the investors. How Sharekhan Manages Portfolio? Sharekhan portfolio Management Services ? Protech ? Proprime ? Proarbitrage picA Trading based portfolio management scheme - Sharekhan introduces a PMS Protech for- a client with higher risk profile using the tenents of Technical Analysis. Product Offerings 1. not bad(predicate) Thrifty 2. beta Portf olio 1. bang-up Thrifty- Nifty futures are bought and sold on the bottom of an automated trading arranging that generates calls to go immense / short. The photo neer exceeds value of portfolio i. e. there is no leverage but being short in Nifty allows you to advance even in falling markets and there by generates linear returns. Features of Nifty thrifty o Nifty futures are bought and sold on the basis of an automated trading system that generates calls to go long / short. The exposure will never exceeds the value of the portfolio i. e. no leveraging but will allow to be short in Nifty in falling market therefore allowing the client to earn regardless of the market direction. o The chemical equilibrium money will be invested in Liquid Funds o Money management rules will be in place to see that the capital is not eroded. 2. Beta Portfolio- Stocks in long term technical up trends are identified at various modulation points in their trading cycles. 80% of the portfolio is traded in economy of such stocks. 20% is used in creating and options book i. e. purchasing calls/puts of the great power number / stocks to increase the portfolio beta and hedge against pitfalls. Features of Beta Portfolio Stocks in long term technical up trends are identified at various inflection points in their trading cycles o 80% of the portfolio is traded in pitching of such stocks. o 20% is used in creating and options book i. e. buying calls/puts of the index / stocks to increase the portfolio beta and hedge against pitfalls. o The use of timing for delivery and options for a higher beta will attempt to offer a superior rate of returns by taking a risk only 20% of the capital. o Money management rules will be in place to see that the capital is not eroded. o Portfolio rebalancing may be conducted between the cash and options segments based on the cyberspaceability of each segment. Product characteristics Using swing/momentum based index trading systems with discipline/reve rse trend following. ? Investor get the beaver of worlds by ? Having positions in cash and options ? Delivery positions enable profit maximization, while options position offered high beta short term profit in the same portfolio. ? deplorable impact cost. Product details minimal investment Rs. 5 Lakh ringlet butterfly in for 3 months Fortnightly reporting of Portfolio Net Worth monthly reporting of Portfolio Holdings/Transactions 20% profit sharing fees on schedule profits quarterly basis 5% discount on profit sharing fees to 15% for investment of 1 crore OR dummy up in of 1 year. 0% AMC fees Brokerage 0. 05% for derivatives and 0. 30% for delivery. Nifty futures will be bought and sold on the basis of an automated trading system that will generate calls to go long/short. The system has been tested over the finish 20 years of dataandperformance has been very good details or returns v/s risk are availablefor chaseed investors. The portfolios exposure will never exceed the value of the portfolio, i. e. there shall be no leveraging. But the strategy will allow us to go short/hedge on Nifty in falling markets, thereby tame returns irrespective of the market direction. The portfolio will either be long or short at all point time. Nifty Thrifty Nifty futures are bought and sold on the basis of an automated trading system that generates calls to go long/short. The exposure never exceeds value of portfolio i. e. there is no leveraging but being short in Nifty allows you to earn even in falling markets and there by generateslinear Product offerings 1. The warring dodging Ideal for investors looking at higher returns with high risk appetite. This portfolio consists of high growth stocks fulfilling any of the following conditions ? Expected growth in profitability Turn around and corporate restructuring enabling value unlocking ? relatively low valuation ? Mid to small cap companies 2. The Balanced Scheme Ideal for investors looking at steady retu rns with low risk appetite. This portfolio consist of blend of quality blue chip and growth stocks ensuring a balance portfolio with relatively medium risk profile. Product approach Investments are based on 3 tenets I. Consistent, steady and sustainable returns II. Margin of safety III. Low volatility Product characteristics ? Bottom up stock selection ? In-depth, free-lance fundamental research ? High quality companies with sustainable competitive advantage ?Disciplined valuation approach applying multiple valuation measures ? Medium to long term vision, resulting in low portfolio turnover Product details ? minimal investment Rs. 5 lakh ? Lock in 3 months ? account Online access to portfolio holdings, monthly reporting of portfolio holdings/transactions ? Charges 2. 5% per annum AMC fees charged every quarter, 0. 5% brokerage, 20% profit sharing after 15% burial vault is crossed- chargeable at the end of the fiscal year. Product offerings Cash-future Arbitrage it musca volitan s risk free opportunities that yield greater returns than conventional risk free products. On spotting the opportunity, the stock is bought and future is sold to lock in the spread.Position is liquidated if the spread things before time or on expiry, whichever comes earlier. In this manner, the scheme moves from one opportunity to another. Product approach There is an ingrained opportunity in the spread that lies between cash and futures. When the spread is high stocks are bought at the same time futures are sold to lock in the difference which is then bound to be zero at expiry. Product characteristics Risk Free On the whole, it is risk-free and can be compared to RBI bonds and GILT funds. High Returns As compared to other zero risk products, it offers somewhat an 8% post tax returns. Product details ? Minimum Investment Rs. 5 lakh ? Lock in 3 months describe fortnightly for portfolio net worth, monthly for portfolio holdings/Transactions ? Charges 0. 035% brokerage for cash,0. 075% for delivery SWOT ANALYSIS Of PMS (Portfolio Management Services) offered by SHAREKHAN Ltd. Strengths In Sharekhans PMS (Portfolio Management Services) It has a product like NIFTY THRIFTY. It is the big durability for Sharekhan, because Sharekhan is only the emancipation holder of NIFTY THRIFTY. Generally investors give more preference to this product because it works on the TECHNICAL basis and gives maximum returns is just about 40%. It is the maximum returns that no other product gives this much of returns to investors. The other product i. e. BETA Portfolio which works on complete level.In this product 80% of the portfolio is trade in the Delivery basis and the remaining 20% is trade in Option basis i. e. buying calls/puts. so investors gets fixed returns. So the product ProTech is very big personnel of the Sharekhan Ltd. Weaknesses Sharekhans other products ProPrime and ProArbitrage does gives as much business as ProTech. In this two products risk is low and the return s are also steady or low. In this scheme money of investors invested in RBI Bonds and GILIT funds, in this way though as compare to other zero risk products, it offers roughly 8% post tax returns. So generally because of this investors are not prefere to invest their money in this scheme.Because of large investment in PMS (Portfolio Management Services) it is minimum 5 lakh Investors does not take interest in such scheme. Sharekhan does not have the product of small investment, under 5 lakh that the retail investors also take interest in PMS (Portfolio Management Services). Opportunities As per mention above only Sharekhan has the license to operate ProTech which includes NIFTY THRIFTY and BETA portfolio so investors does not have any other option for investing there money if they command to invest in ProtTch. So this is proved as a very big opportunity for Sharekhan to capture the market and to get the customer as far as ProTech is concern. As per the studies the retail investors are taking interest in investing in PMS.Because in PMS the portfolio is managed as a individual basis. In PMS services there is a fund Manager who manages our portfolio. So now retail investors are also take part in PMS services. So it will be opportunity for Sharekhan to increase their business and will take market lead. Threats In Pune Kotak and Motilal Oswal are the good competitors of Sharekhan. Because Kotak has a 12 years experience in PMS services , they have good products like Sharekhan . The second competitor is Pukhraj Securities because they provide the PMS scheme which has the minimum investment Rs 2, 00,000/- And Sharekhan has the products which has minimum investment Rs. , 00,000/-So Pukhraj also become a good competitor for Sharekhan. Second the entries of Reliance in stock broking will defiantly create a problem for Sharekhan. Market share of different stock broker for PMS in Pune pic The market share for PMS in Pune is captured by Kotak more than Sharekhan as well a s other stock brokers. It is leading because Kotak provide this service from more than 12 years. Sharekhan started this scheme from 2003. In very short period it also captures market and highly competes with Kotak. And put back to the others. pic Because of higher investment segregation such as minimum investment is of Rs. 5,00,000/- in PMS so the no of investors are less than other products. picAfter taking the 100 clients interview the result is derived as out of 100 investors 35 are go for sharekhan to invest their money. The second on the vagabond is Kotak. So it is proved that the PMS scheme provided by sharekhan is more favorite(a) by investors. Conclusion After the studies I have concluded that if company provides the better product as well as schemes not only high class or higher income group will invest but the middle income group is also take interest in investing their money in share market. Only because of one best product and scheme if company launches it can be a ma rket leader for that and will captures the more share of market. BIBLIOGRAPHY Books Financial Management Textbook. ? trade management Textbook. ? Sip students Manual Book. Pamphlets Printed by miscellaneous Stock Broking Firms. Web Sites ? www. Sharekhan. com ? www. MoneyControl. com ? www. Kotak. com ? www. AnandRathi. com ? www. MotilalOswal. com ? www. ICICIDirect. com I understand objectives of my management thesis. I lively questionnaire to collect primary data from customers. I used data collection techniques like questionnaire & interviews. I compiled collected data using excel sheet. I analyzed collected data using various tools & graphical way. I draw conclusion from collected data & make report on it. Pune