analysis ankit

8/11/2019 Analysis Ankit

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CHAPTER - 5

FINDING, CONCLUSION & RECOMMANDATIONS

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

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

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

& suggestion & AMC.

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

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

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

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

up the pack.

MOST IMPORTANT FACTOR WHILE SELECTING A BROKINGHOUSE

AMC

TIPS & SUGGESTION

FEATURES

CUSTOMER SERVICE

CONVINIENCE(IN

TRADE)

IMAGE

BROKERAGE

FACTORS


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

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

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

and AMC.

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

becomes one of the Indias Topmost Online Trading Service Provider.

CONCLUSION :-

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

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

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

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

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

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

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

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

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

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

customers.


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

pool account with no Annual Maintenance charges.

3.

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

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

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

either on buying or selling.

5.

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

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

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

2.

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

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

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

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

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

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

delivery and .05% on intraday

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

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

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

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

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

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

technology is the appreciation of its constraints.

RECOMMENDATION :-

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

on heavy competition from INDIABULLS and ICICIDIRECT.COM

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

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


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

still waiting for promotional campaigns.

2.

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

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

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

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

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

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

getting services.

4.

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

FINDINGS :-

DEMOGRAPHIC FINDINGS

AGE GROUP

Age group(years) No. of respondents

Below 20 0

20-35 31

36-50 78

51-65 59

Above 65 32


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Figure : 1

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

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

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

JOB PROFILE

Category No. of respondents

Service 94

Business 80

Others 26

0

10

20

30

40

50

60

70

80

90

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

No. of respondents


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Figure : 2

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

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

professionals students etc.

ANNUAL INCOME (IN LACS)

Income group No. of Respondents

Less than 1 lac 50

1-5 lacs 93

More than 5 lacs 57

94

80

26

0

No. of respondents

Service

Business

Others


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Figure : 3

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

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

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

EDUCATIONAL BACKGROUND

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

Graduate 79

Post graduate(PG) 55

Others(O) 13

50.00

93

57

0

No. of Respondents

Less than 1 lac

1-5 lacs

More than 5 lacs


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Figure : 4

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

to other category.

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

derivatives market or both, the following respondents were obtained .

Options No. of respondents

Only cash/capital market 76

Only derivative market 21

Both 103

53

79

55

13

0

10

20

30

40

50

60

70

80

90

Under

graduate

Graduate Post graduate Other

No. of respondents


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Figure : 5

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

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

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

investing, the following responses were obtained.

Time period No. of respondents

Less than 1 year 251-5 year 97

More than 5 year 78

0

20

40

60

80

100

120

Only

cash/capital

market

only derivative

market

Both

76

21

103

No. of respondents

No. of respondents


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Figure : 6

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

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

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

and securities, the following responses were obtained.

Investment proportion No. of respondents

Up to 5% 47

5 to 10% 59

10 to 25% 63

More than 25% 31

25

97

78

No of respondents

Less than 1 year

1-5 year

more than 5 year


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Figure : 7

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

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

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

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

obtained.

47

59

63

31

No. of respondents

Up to 5%

5to 10 %

10 to 25%

more than 25%


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Figure : 8

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

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

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

were obtained.

0

20

40

60

80

100

120

140

Daily Monthly Weekly According to

the market

49

13

7

131

No. of respondents

No. of respondents


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Figure : 9

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

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

when required, the following responses were obtained.

98

37

19

35

11

0

20

40

60

80

100

120

On your own

idea

Expert's option On friend

advice

Broker advice Other

No. of respondents

No. of respondents


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Figure : 10

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

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

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

capital market, the following responses were obtained.

19

108

73

No. of Responding

Yes

No

Sometime

Option Rank I Rank II Rank III

Regular income in 113 27 60


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


Regular income in the

form of dividend/

interest

339 54 60

Tax planning 165 52 119

Capital gain 360 50 55

the form of dividend/

interest

Tax planning 55 26 119

Capital gain 120 25 55


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Figure : 11

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

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

income and tax planning.

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

broker, the following responses were obtained.

339

165

360

54 52 50

60

119

55

0

50

100

150

200

250

300

350

400

Regular income in form of

divident/ interest

Tax planning Capital gain

Rank I

Rank II

Rank III


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Brokerage 129 59 12

Frequent payments &

transfer of securities

112 43 45

Less advance margin 59 79 62

Credit limits 65 46 89

Personal Relations 79 24 97

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


Brokerage 387 118 12

Frequent payments &

transfer of securities

336 86 45

Less advance margin 177 158 62

Credit limits 195 92 89

Personal Relations 237 48 97


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Figure : 12

0

50

100

150

200

250

300

350

400

Brokerage Frequent

payments &

transfer of

securities

Less advance

margin

Credit limits Personal

Relations

387

336

177

195

237

118

86

158

92

48

12

45

62

8997

Rank I

Rank II

Rank III

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