unicon investment process solution
TRANSCRIPT
SUMMER PROJECT REPORT On
“INVESTMENT SERVICES AND INVESTMENT PROCESS OF UNICON INVESTMENT SOLUTION”
At
Under the guidance of
Mr. MADURIYA MALIK Dr. SHARAT SHARMA
Sales Manager Faculty, Management
SRM-IST, Modinagar
SUBMITTED BY:
AZHAR HUSSAIN KHAN
Reg. No. - 35084027
(M.B.A. 2008-2010)
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SRM – INSTITUTE OF SCIENCE AND TECHNOLOGY, MODINAGAR
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STUDENT DECLARATION
I AZHAR HUSSAIN KHAN student of MBA here by declared that the research
report entitled ‘INVESTMENT SERVICES AND INVESTMENT PROCESS
OF UNICON INVESTMENT SOLUTION’ is completed and submitted under
the guidance of Mr.Tarun Kumar (Sr.Relationship Manager) is my original
work. The imperial finding in this report is based on the data collected by me. I
have not submitted this project report to SRM-IST or any other University for the
purpose of compliance of any requirement of any examination or degree.
DATE: AZHAR HUSSAIN KHAN
PLACE: MBA III SEM
ROLL NO. 35084027
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ACKNOWLEDGEMENT
At the very beginning, I wish to render my deep sense of gratitude with special
thanks and due regard to Mr. TARUN KUMAR (Sr. Relationship Manager,
Unicon Investment Solution) whom I required the privilege of working. His
invaluable guidance and thoughtful consideration had been the key motivating
factor throughout my project, which enabled me to complete my project so
efficiently and effectively.
I wish to express my respectable thanks and gratitude to Dr. SHARAT SHARMA
(Faculty of M.B.A.) theoretical knowledge about the subject.
I feel immense pleasure to offer my thanks to faculty members, who co-operated in
analysis of data and helped me to understand some behavioral aspects of
consumers. I am very thankful to my friends who directly and indirectly helped me
in collection of data and material related to the research topic.
AZHAR HUSSAIN KHAN
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CONTENTS
Chapter – 1
1. Executive summary 3
Chapter – 2
2. Financial sector 4
3. Industry profile 11
Chapter -3
4. Company profile 46
5. Product profile 52
Chapter - 4
6. Objectives of the study 67
7. Research methodology 68
Chapter -5
8. Data analysis 70
Chapter - 6
9. Conclusions 77
10. Recommendations 82
11. Limitations 84
5
Chapter – 7
1. Questionnaire 85
2. Bibliography 88
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EXECUTIVE SUMMARY
To get initial success in this field is very difficult. Although the business
generation becomes easier with time as they serve more people who then get added
up in the loyal clientage. Thus time and service are two most factors to get in this
field.
Also the corporate remains a very important segment which gets business in bulk
but retail cannot be ignored which makes your business ticking.
Customer remains in the pivotal position.
The financial sector is in a process of rapid transformation. Reforms are continuing
as part of the overall structural reforms aimed at improving the productivity and
efficiency of the economy. The role of an integrated financial infrastructure is to
stimulate and sustain economic growth.
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FINANCIAL SECTOR
The financial sector is in a process of rapid transformation. Reforms are continuing
as part of the overall structural reforms aimed at improving the productivity and
efficiency of the economy. The role of an integrated financial infrastructure is to
stimulate and sustain economic growth.
The US$ 28 billion Indian financial sector has grown at around 15 per cent and has
displayed stability for the last several years, even when other markets in the Asian
region were facing a crisis. This stability was ensured through the resilience that
has been built into the system over time. The financial sector has kept pace with
the growing needs of corporate and other borrowers. Banks, capital market
participants and insurers have developed a wide range of products and services to
suit varied customer requirements. The Reserve Bank of India (RBI) has
successfully introduced a regime where interest rates are more in line with market
forces.
Financial institutions have combated the reduction in interest rates and pressure on
their margins by constantly innovating and targeting attractive consumer segments.
Banks and trade financiers have also played an important role in promoting foreign
trade of the country.
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Banks
The Indian banking system has a large geographic and functional coverage.
Presently the total asset size of the Indian banking sector is US$ 270 billion while
the total deposits amount to US$ 220 billion with a branch network exceeding
66,000 branches across the country. Revenues of the banking sector have grown at
6 per cent CAGR over the past few years to reach a size of US$ 15 billion. While
commercial banks cater to short and medium term financing requirements, national
level and state level financial institutions meet longer-term requirements. This
distinction is getting blurred with commercial banks extending project finance. The
total disbursements of the financial institutions in 2001 were US$ 14 billion.
Banking today has transformed into a technology intensive and customer friendly
model with a focus on convenience. The sector is set to witness the emergence of
financial supermarkets in the form of universal banks providing a suite of services
from retail to corporate banking and industrial lending to investment banking.
While corporate banking is clearly the largest segment, personal financial services
is the highest growth segment.
The recent favourable government policies for enhancing limits of foreign
investments to 49 per cent among other key initiatives have encouraged such
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activity. Larger banks will be able to mobilise sufficient capital to finance asset
expansion and fund investments in technology.
Capital Market
The Indian capital markets have witnessed a transformation over the last decade.
India is now placed among the mature markets of the world. Key progressive
initiatives in recent years include:
• The depository and share dematerialisation systems that have enhanced the
efficiency of the transaction cycle
• Replacing the flexible, but often exploited, forward trading mechanism with
rolling settlement, to bring about transparency
• The infotech-driven National Stock Exchange (NSE) with a national presence
(for the benefit of investors across locations) and other initiatives to enhance the
quality of financial disclosures.
• Corporatisation of stock exchanges.
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• The Securities and Exchange Board of India (SEBI) has effectively been
functioning as an independent regulator with statutory powers.
• Indian capital markets have rewarded Foreign Institutional Investors (FIIs) with
attractive valuations and increasing returns.
• The Mumbai Stock Exchange continues to be the premier exchange in the
country with an increase in market capitalisation from US$ 40 billion in 1990-1991
to US$ 203 billion in 1999-2000. The stock exchange has about 6,000 listed
companies and an average daily volume of about a billion dollars
• Many new instruments have been introduced in the markets, including index
futures, index options, derivatives and options and futures in select stocks.
Insurance
With the opening of the market, foreign and private Indian players are keen to
convert untapped market potential into opportunities by providing tailor-made
products:
• The presence of a host of new players in the sector has resulted in a shift in
approach and the launch of innovative products, services and value-added benefits.
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Foreign majors have entered the country and announced joint ventures in both life
and non-life areas. Major foreign players include New York Life, Aviva, Tokio
Marine, Allianz, Standard Life, Lombard General, AIG, AMP and Sun Life among
others.
• With competition, the erstwhile state sector companies have become aggressive
in terms of product offerings, marketing and distribution.
• The Insurance Regulatory and Development Authority (IRDA) has played a
proactive role as a regulator and a facilitator in the sector’s development.
• The size of the market presents immense opportunities to new players with only
20 per cent of the country’s insurable population currently insured.
• The state sector Life Insurance Corporation (LIC), the largest life insurer in 2000,
sold close to 20 million new policies with a turnover of US$ 5 billion.
• The gross premia for the insurance sector was US$ 13 billion for 2001-02.
• There are four public sector and nine private sector insurance companies
operating in general/non-life insurance business with a premium income of over
US$ 2.58 billion.
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• The market’s potential has been estimated to have a premium income of US$ 80
billion with a potential size of over 300 million people. The General Insurance
Corporation (GIC) (which covers the non-life sector) had a total premium income
of US$ 2 billion in 2001-02. This has the potential to reach US$ 9 billion in the
next five years.
Venture Capital
Technology and knowledge have been and continue to drive the global economy.
Given the inherent strength by way of its human capital, technical skills, cost
competitive workforce, research and entrepreneurship, India is positioned for rapid
economic growth in a sustainable manner. To realise the potential, there is a need
for risk finance and venture capital (VC) funding to leverage innovation, promote
technology and harness knowledge based ideas.
• The Indian venture capital sector has been active despite facing a challenging
external environment in 2001 and a competitive market scenario.
• There were 34 VCFs and 2 Foreign VCFs registered with SEBI in March 2008.
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• According to a survey conducted by Thomson Financial and Prime Database,
India ranked as the third most active venture capital market in Asia Pacific
(excluding Japan). It recorded 115 deals in 2001 with average investment per deal
amounting to US$ 7.9 million. 57 VCFs invested US$ 908 million in 101 Indian
companies during 2001.
• Disbursements for 2008 are expected to be US$ 2 billion and are estimated to
reach US$ 10 billion by 2009.
• There is an increased interest in India: 70 VC funds operate in India with the total
assets under management worth about US$ 6 billion.
• The amount has grown nearly twenty fold in the past five years. Most VCs
believe that 2008-09 will be driven by a relatively stable economy and new
initiatives that will boost the e-commerce sector, particularly on-line trading and e-
banking sectors.
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INDUSTRY PROFILE
A. Origin and Development of the industry
The Bombay Stock Exchange (BSE) is known as the oldest exchange in Asia. It
traces its history to the 1850s, when stockbrokers would gather under banyan trees
in front of Mumbai’s Town Hall. The location of these meetings changed many
times, as the number of brokers constantly increased. The group eventually moved
to Dalal Street in 1874 and in 1875 became an official organization known as ‘The
Native Share & Stock Brokers Association’. In 1956, the BSE became the first
stock exchange to be recognized by the Indian Government under the Securities
Contracts Regulation Act.
The Bombay Stock Exchange developed the BSE Sensex in 1986, giving the BSE
a means to measure overall performance of the exchange. In 2000 the BSE used
this index to open its derivatives market, trading Sensex futures contracts. The
development of Sensex options along with equity derivatives followed in 2001 and
2008, expanding the BSE’s trading platform.
Historically an open-cry floor trading exchange, the Bombay Stock Exchange
switched to an electronic trading system in 1995. It took the exchange only fifty
days to make this transition.
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Capital market reforms in India and the launch of the Securities and Exchange
Board of India (SEBI) accelerated the integration of the second Indian stock
exchange called the National Stock Exchange (NSE) in 1992. After a few years of
operations, the NSE has become the largest stock exchange in India.
Three segments of the NSE trading platform were established one after another.
The Wholesale Debt Market (WDM) commenced operations in June 1994 and the
Capital Market (CM) segment was opened at the end of 1994. Finally, the Futures
and Options segment began operating in 2000. Today the NSE takes the 14th
position in the top 40 futures exchanges in the world.
In 1996, the National Stock Exchange of India launched S&P CNX Nifty and
CNX Junior Indices that make up 100 most liquid stocks in India. CNX Nifty is a
diversified index of 50 stocks from 25 different economy sectors. The Indices are
owned and managed by India Index Services and Products Ltd (IISL) that has a
consulting and licensing agreement with Standard & Poor’s.
In 1998, the National Stock Exchange of India launched its web-site and was the
first exchange in India that started trading stock on the Internet in 2000. The NSE
has also proved its leadership in the Indian financial market by gaining many
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awards such as ‘Best IT Usage Award’ by Computer Society in India (in 1996 and
1997) and CHIP Web Award by CHIP magazine (1999).
The National Stock Exchange of India was promoted by leading Financial
institutions at the behest of the Government of India, and was incorporated in
November 1992 as a tax-paying company. In April 1993, it was recognized as a
stock exchange under the Securities Contracts (Regulation) Act, 1956. NSE
commenced operations in the Wholesale Debt Market (WDM) segment in June
1994. The Capital Market (Equities) segment of the NSE commenced operations in
November 1994, while operations in the Derivatives segment commenced in June
2000.
Since the early 1950s till the early 1990s, Indian policy makers had been
nourishing the goal of Socialist pattern of society. They had been following the
development planning strategy of the former Soviet Russia in a mixed economic
framework. From July 1991, in the face of an unprecedented foreign exchange
crisis, Indian economy started experiencing an IMF-World Bank dictated regime of
liberalisation.
One aspect of this is financial liberalisation. There is a move towards privatisation
of nationalised banks – these banks are selling their shares in the stock market.
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Transnational banks are encouraged to operate in the Indian banking sector.
Attempts are made to attract foreign direct investment in different sectors. There is
an increasing entry of foreign portfolio capital due to stock market liberalisation.
People are encouraged to invest in stocks through income tax benefits and
abolition of capital gains tax. There is a move to develop a national pension fund
which will be invested in different stocks to get returns out of which pension will
be provided to retired people. It is expected that boosting up of stock market will
accelerate the process of capital accumulation and growth.
Stock market development has been an important part of financial liberalisation in
the less developed countries (LDCs). In the pro-liberalisation circle, stock market
is assigned to play an important role in the capitalist development of LDCs.
There are many studies supporting the positive link between stock market
development and growth. Let us mention some of the recent studies. One important
study was undertaken by Levine and Zervos (1998). Their cross-country study
found that the Development of banks and stock markets has a positive effect on
growth. In another study Levine (2003) argued that although theory provides
ambiguous relationship between stock market liquidity and economic growth, the
cross-country data for 49 countries over the period 1976-93 suggest a strong and
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positive relationship (see also Levine, 2001). Henry (2000) studied a sample of 11
LDCs and observed that stock market liberalisations lead to private investment
boom. Recently, Bekaert et al (2005) analysed data of a large number of countries
and observed that the stock market liberalisation ‘leads to an approximate 1 %
increase in annual real per capita GDP growth’.
There are some economists who are sceptical. Long time back Keynes (1936)
compared the stock market with casino and commented: ‘when the capital
development of a country becomes the by-product of the activities of a casino, the
job is likely to be ill-done’.
Referring to the study of World Bank (1993) Singh (1997) pointed out that stock
markets have played little role in the post-war industrialisation of Japan, Korea and
Taiwan. He argued that the recent move towards stock market liberalisation is
‘unlikely to help in achieving quicker industrialisation and faster long-term
economic growth’ in most of the LDCs.
In this perspective this study examines the nature of relationship between stock
market and growth through capital accumulation in India.
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Growth and present status of the industry
The ever-growing and fast-maturing 'India Market' is a lucrative business
destination for developed countries. With 7-8% of GDP growth, huge analytical,
young and English speaking work force the 'pull' for opportunities are luring. The
bandwidth of 'India Market' is enviably wide and very deep.
'Markets in India' are well protected by legal guidelines and efficient
administrators. With a liberal and proactive government at the center the road
ahead for 'Markets of India' is very rosy. 'Market India' has witnessed exponential
growth over past one and half decade. Liberal and transparent financial policies has
effected free-in-flow of FII and as a result of which 'India Market' has grown to a
colossal monster in the international market. Foreseeing sure and substantial
returns on investments (ROI) companies are pro- actively listing on the stock
market indexes. Government agencies once much hated for red tape and bribes has
shed its image. Professionalism is their new mantra. Public Enterprises like IOC,
ONGC, BHEL, NTPC, SAIL, MTNL, BPCL, HPCL and GAIL, SBI, LIC,
Hindustan Antibiotics Limited, Air India etc. to name a few, are giving Private
Indian companies a good run for their money. Private giants like Reliance
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Industries Limited, Infosys, Tata, Birla Corporation, Jet Airways, Ranbaxy,
Biocon, Bajaj Auto, ICICI are breaking their own records every financial years.
Future of the industry
The stock market is booming in spite of the low agriculture output. The monsoon is
good in an overall sense but still the question remains who takes the credit? The
answer is the karma of the people. I appreciate the Indian politicians and the
industrialists who being pawns of destiny are doing things positive and productive.
India, as a country is running a very good period and the position of planets in the
transit are giving wonderful results.
Less than one percent of population own stocks and less than 1000 individuals
control the market, the majority being the FIIS, the promoters of the company. The
credit should go to media for making stock market headlines.
The question many people in the market ask:
Will the bull run continue? What heights we can reach?
First of all, mark my words Indian bourses in the future will be one of the best
investments in the world. There will be a time when it can even reach 3000 points
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in the nifty. India will begin one of the best dasas of the Sun, which will work in its
favour. So before 2009 Indian bourses should see an all time high.
Now this bull run will continue.
• There can be some correction in the BSE sensex in the 7500 points level.
• The market will hover between the 6000- 7000 till mid august.
• There will be huge fluctuations.
Investors and new entrants to the market to cool down a bit and come well below
7000.
In any case if you are long terms players then step-in and buy now and forget for
another 10 years. You will make a killing in the Indian markets.
Most of the tech companies and the main index will do well but slightly in the
lower side of expectations.
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AN OVERVIEW OF FINANCIAL SERVICES
Since 1990’s, there has been an upsurge in the financial services provided by
various banks and financial institutions. Efficiency of emerging financial system
largely depends upon the quality and variety of financial; services provided by the
banking and non-banking financial companies.
The term ‘Financial Services’ can be defined as, “activities, benefits and
satisfactions, connected with sale of money, that offer to users and customers,
financial related value”.
Suppliers of financial services include the following types of institutions:
Banks and financial Institutions.
House building societies.
Insurances companies.
Credit card issuer companies.
Investment trust and Mutual funds.
Stock exchanges.
Leasing companies.
Unit trusts.
Finance Companies, and so on.
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Financial service organizations render services to industrial enterprises and
ultimate consumer markets. This can be further subdivided to include Government/
public sector/ private sector, the commercial sector, industry and international
markets. Within the financial services industry the main sectors are banks,
financial institutions and non-banking financial companies.
Characteristics of financial services:
The financial have the following characteristics.
Intangible: An organization engaged in providing financial services is largely
dependent on the feedback from the public as to effectiveness, quality and
attractiveness of the services rendered.
Direct sale: Direct sale is the only possible channel of distribution. There are no
middlemen in between. In order to insure that services are available at the right
time and at the right place, simultaneous production and distribution of financial
services is undertaken by the service organizations.
Heterogeneity. In order to cater a variety financial and related needs of
different customers in different areas, financial service organization have to offer a
wide range of products and services.
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Fluctuation in demand: The demand for certain categories of financial services
e.g., life insurance; do fluctuate significantly, according to the level of general
economic activity. This factor puts extra pressures on the roles and functions of
marketing in insurance organizations.
Project customer’s interest : The responsibility of any financial services
organization to protect consumer’s interest is important not just in banking and
insurance, but also in other sectors of the financial services.
Labour intensive. Personalized service versus automation, in fact, is an important
issue in financial services. The financial services sector is highly Labour intensive.
It leads to increase in the costs of production and consequently affects the price of
financial product.
Geographical dispersion. Financial services must have both apple and wider
application. To insure this, the service providing organizations must have massive
branch network so that international, national and local customers enjoy benefits of
convenience.
Lack of special identity. Customers usually approach a nearby branch of bank or
financial institution, because it is convenient to them. As the competing products
offered by various service organizations are similar, the emphasis is more on the
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‘package’ then the product. The package consists of branch location, staff,
services, reputation, advertising and new services offered from time to time.
Information based. Financial services industry is an information-based
industry. It involves creation, dissemination, and use of information. Information is
an essential component in the production of financial services. Cost of processing
information is quite relevant in the profitable production of financial services.
Require quality Labour. Financial services require huge amounts of high
quality Labour to deal with information and communication with the market. The
types of Labour rage from workers performing simple tasks to those undertaking
complex analysis and negotiation require years of training and experience.
Kinds of financial services:
Financial services provided by various financial institutions, commercial banks and
merchant bankers can be broadly classified into 2 categories:
(1) Asset based / Fund based services.
(2) Fee based / Advisory services.
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The important fund based services include:
Equipment Leasing /Finance.
Hire- Purchase and Consumer Credit.
Bill Discounting.
Venture capital.
Housing Finance.
Insurance Services.
Factoring etc.
The fee based/ advisory services include:
Issue Management.
Portfolio Management.
Corporate Counseling.
Loan Syndication.
Merger and Acquisition.
Capital Restructuring.
Credit Rating.
Stock Broking and so on.
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INSURANCE IN INDIA
The insurance sector in India has come a full circle from being an open
competitive market to nationalization and back to a liberalized market again.
Tracing the developments in the Indian insurance sector reveals the 360-degree
turn witnessed over a period of almost two centuries.
A brief history of the Insurance sector
The business of life insurance in India in its existing form started in India in the
year 1818 with the establishment of the Oriental Life Insurance Company in
Calcutta. Some of the important milestones in the life insurance business in India
are:
1912: The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with
the objective of protecting the interests of the insuring public.
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1956: 245 Indian and foreign insurers and provident societies taken over by the
central government and nationalized. LIC formed by an Act of Parliament, viz.
LIC Act,
1956, with a capital contribution of Rs. 5 crore from the Government of India.
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General Insurance
The General insurance business in India, on the other hand, can trace its roots to
the Triton Insurance Company Ltd., the first general insurance company
established in the year 1850 in Calcutta by the British. Some of the important
milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all
classes of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India,
frames a code of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum
solvency margins and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the
general insurance business in India with effect from 1st January 1973. 107 insurers
amalgamated and grouped into four companies viz. the National Insurance
Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance
Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as
a company.
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Insurance sector reforms
In 1993, Malhotra Committee, headed by former Finance Secretary and RBI
Governor R. N. Malhotra, was formed to evaluate the Indian insurance industry
and recommend its future direction. The Malhotra committee was set up with the
objective of complementing the reforms initiated in the financial sector.
The reforms were aimed at “creating a more efficient and competitive financial
system suitable for the requirements of the economy keeping in mind the structural
changes currently underway and recognizing that insurance is an important part of
the overall financial system where it was necessary to address the need for similar
reforms…”
In 1994, the committee submitted the report and some of the key recommendations
included:
i) Structure
Government stake in the insurance Companies to be brought down to 50%
Government should take over the holdings of GIC and its subsidiaries so that
these subsidiaries can act as independent corporations
All the insurance companies should be given greater freedom to operate
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ii) Competition
Private Companies with a minimum paid up capital of Rs.1bn should be
allowed
to enter the industry
No Company should deal in both Life and General Insurance through a single
entity
Foreign companies may be allowed to enter the industry in collaboration with
the domestic companies
Postal Life Insurance should be allowed to operate in the rural market
Only one State Level Life Insurance Company should be allowed to operate in
each state
iii) Regulatory Body
The Insurance Act should be changed
An Insurance Regulatory body should be set up
Controller of Insurance (Currently a part from the Finance Ministry) should be
made independent
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iv) Investments
Mandatory Investments of LIC Life Fund in government securities to be
reduced from 75% to 50%
GIC and its subsidiaries are not to hold more than 5% in any company (There
current holdings to be brought down to this level over a period of time)
v) Customer Service
LIC should pay interest on delays in payments beyond 30 days
Insurance companies must be encouraged to set up unit linked pension plans
Computerization of operations and updating of technology to be carried out in
the insurance industry.
The committee emphasized that in order to improve the customer services
and increase the coverage of the insurance industry should be opened up to
competition. But at the same time, the committee felt the need to exercise caution
as any failure on the part of new players could ruin the public confidence in the
industry.
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The Insurance Regulatory and Development Authority (IRDA)
Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in
Parliament in December 1999. The IRDA since its incorporation as a statutory
body in April 2000 has fastidiously stuck to its schedule of framing regulations and
registering the private sector insurance companies.
The other decisions taken simultaneously to provide the supporting systems to the
insurance sector and in particular the life insurance companies was the launch of
the IRDA’s online service for issue and renewal of licenses to agents.
The approval of institutions for imparting training to agents has also ensured that
the insurance companies would have a trained workforce of insurance agents in
place to sell their products, which are expected to be introduced by early next year.
Since being set up as an independent statutory body the IRDA has put in a
framework of globally compatible regulations. In the private sector 12 life
insurance and 6 general insurance companies have been registered.
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MAJOR DEVELOPMENTS DURING THE YEAR
The year 2008-09 witnessed the commercial banks becoming aggressive players in
the home loans market and a dramatic fall in interest rates across all maturities.
This fall in interest rates was driven by the decreasing bank rate and the increased
competition with in the banks themselves and between the Banks and HFCs. There
was a growing emphasis on the adjustable rate loans due to the decreasing interest
rate scenario.
In presenting the Union Budget for 2008-09 the Hon’ble finance minister
announced that National Housing Bank would launch a Mortgage Credit Guarantee
Scheme, which would be provided to all housing loans thereby fully protecting
lenders against default. Towards this end the Asian Development Bank (ADB)
approved an investment of up to US$10 million
Equivalent in November 2008 to help pioneer the first mortgage guarantee
company for India. Mortgage financing through the India Mortgage Guarantee
Company (IMGC) will help narrow the housing shortfall. The India Mortgage
Guarantee Company will improve the efficiency of housing finance and protect
mortgage lenders such as banks and housing finance
Companies in cases of borrower default.
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The creation of IMGC will:
• Generate a greater volume of mortgage lending in the Indian market
• Lower down payment requirements to as low as 5%
• Broaden the eligibility for mortgages, and
• Extend mortgage repayment periods by up to 25 years These changes will, in
turn, support capital market development by promoting securitization and
increasing home ownership. The incremental direct disbursement market share for
the years 2001-02 and 2008-09 shows that the HFCs have lost
significant market share to the Banks.
Organized as a public limited company, IMGC is sponsored by the National
Housing Bank (NHB) of India and the Canadian Mortgage and Housing
Corporation. Other main shareholders are the International Finance Corporation,
and ADB. The total project cost is estimated at US$40 million in paid-up capital.
Finishing touches are being given to IMGC, which is expected to formally come in
to existence in September of this year. The schemes from IMGC are expected to be
launched by January ’04 With the enactment of The Securitisation and
Reconstruction of Financial Assets and Enforcement of Security Interest Act 2008
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(The Securitisation Act), banks have been empowered to attach assets of the
defaulters without intervention of lengthy and time consuming court procedures.
This would help the banks for speedier foreclosure of home loan accounts in
default. NHB is also operational zing the foreclosure laws, which will enable the
HFCs to foreclose the defaulting account and apply to the recovery officer for sale
of mortgaged property. Easier foreclosure laws coupled with the proposed
mortgage credit guarantee scheme of the NHB are expected to release
nonperforming funds of HFCs for lending.
Products and Services
The housing finance industry is getting increasingly commodities. Competition
within the sector is ensuring that in case of inadequate credit appraisal or recovery
systems. The defense strategies for managing increasing default rates fall into three
basic categories: borrower strength, collateral strength, lender techniques and
various forms of insurance.
The first line of defense against loss is making good loan decisions; the second is
managing the asset effectively, with risk sharing entities coming last. Credit risk
insurance is only activated after the lender has done everything possible to avoid a
loss on the loan.
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Credit risk management in the Indian context means the housing finance company
has to develop certain in-house/local standards for measurement of a borrowers’
ability and willingness to repay the loan for the long term, apply those standards,
measure the performance and continually make adjustments to the standards based
upon results. Operations risk management means establishing the internal capacity
to make good credit
decisions (reduce risk of loss), while at the same time managing the assets so that
costs are minimized. With the exception of HDFC, banks and other housing
finance companies have little experience in credit and operational risk and
management in the housing finance sector.
In this context the proposed Mortgage Guarantee Company (MGC) could have a
significant influence on the housing finance market provided if the MGC is able to
offer reasonable risk pricing for credit and default risk. With MGC in place
offering attractive credit risk mitigation, the housing finance
could see many more new players offering home loans with the market becoming
more competitive. There is a lot of optimism at the NHB on the growth prospects
of the mortgage market and the expectations are also running high on their ability
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to streamline mortgage legislative environment; this could further bolster the
market growth and lower the cost of mortgages.
Asset liability mismatch increases the interest rate and liquidity risk profile of the
HFCs and Banks. The tenure of housing loan has consistently increased from 5
years in the past to 15-20 years at present, however the asset remains in the books
of the lender for 8-10 years. Banks have the ability to largely mitigate this risk due
to access to diversified resources and lending options. The banking sector, every
year, gets around Rs 400- 450 billion in savings and demand/current account
deposits out of which around 75-80 percent can be considered as core float and is
largely long term in nature resulting in banks being largely protected from asset
liability mismatch risk. However differences in the maturity profiles of assets and
liabilities continue to be of major concern for HFC’s.
In future, the ability to foreclose defaulting mortgage assets will become a key
competency for profitability in housing finance market. HFCs and Banks are
increasingly looking at smaller towns for growth. Some HFCs are expected to
follow a new business model of becoming the originator of loans, and thereafter
securitising to one of the larger players. As a result, these players will book the
revenues (processing fees) upfront and thereafter
39
Transfer the assets to a larger player (commercial bank or general public) in the
form of portfolio sell out or a MBS. However, only HFCs with the ability to raise
good quality assets and having adequate distribution channels are likely to survive
the competition.
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MUTUAL FUNDS:
Mutual funds are companies that pool funds from a large number of investors and
invest them on their behalf for a financial return by buying, holding and selling
securities. Funds managed by institutional investors are huge and growing rapidly,
particularly as part of the resolution of pension pressures in various parts of the
world. Global Assets under Management (AUM) rose 6 per cent to US $ 38.2
trillion in the first half of 2003, according to Cerulli Associates' latest Global
Update report. Cerulli predicts the global compound annual growth rate for the
industry to be 8 per cent between 2008 and 2009.
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INDIAN MUTUAL FUND INDUSTRY
The history of Indian mutual fund industry can be distinctly divided into two
phases - the period before liberalization when only public sector players existed
with one dominant player Unit Trust of India and the post-liberalization era where
the industry was opened up to private players.
Unit Trust of India (UTI) was established in 1963 and launched its legendary first
scheme 'US-64' in 1964. UTI witnessed a slow and steady growth over seventies
and eighties and by end of 1988 it had an AUM of Rs. 67,000 million. From 1987,
non-UTI, public sector mutual funds were allowed and a series of mutual fund
companies were set up by public sector banks and financial institutions. At the end
of 1993, the overall AUM of mutual fund industry was Rs. 470,004 million.
The mutual fund industry was opened up for private participation 1993 and a new
era was ushered in, paving the way for an unprecedented choice of products and
services to Indian investors. Detailed guidelines were established and the mutual
fund industry (except UTI) came under the regulation of Securities Exchange
Board of India (SEBI). Many reputed foreign mutual funds such as Templeton,
42
Alliance, Prudential group etc. set up operations in India. As at the end of January
2003, there were 33 mutual funds with total assets of Rs. 1,218,050 million.
In February 2003, the Unit Trust of India Act 1963 was repealed and UTI was
broken into two separate entities. One is the Specified Undertaking of the Unit
Trust of India, still under the control of Government of India with AUM of Rs.
298,350 million as at the end of January 2003. The second is the UTI Mutual Fund
Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and
functions under the Mutual Fund Regulations. As at the end of October 31, 2003,
there were totally 31 funds in India, with assets under management of about Rs.
1,267,260 million.
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TRENDS IN MARKETING OF MUTUAL FUNDS IN INDIA
The changing marketing trends in the mutual fund industry in India can be easily
linked and traced to its history of growth. The changes in marketing strategies can
be characterized by 4 stages which have evolved along with the growth and
evolution of the industry.
Product Focus
For the first three decades of the industry, from the setting up of UTI till the entry
of private sector players, the only focus of the marketing strategy was different
product offerings. UTI and various other public sector mutual funds focused on
introducing an array of products falling in different categories. The categorization
was primarily based on two factors: one was the way the schemes were traded and
the other through different composition of debt and equity securities in the scheme.
By the way Schemes were traded:
>Open-ended Schemes
>Close-ended Schemes
In an open-ended scheme there are no limits on the total size of the corpus.
Investors are permitted to enter and exit the open-ended scheme at any point of
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time at a price that is linked to the net asset value (NAV). In case of close-ended
schemes, the total size of the corpus is limited by the size of the initial offer. The
entry and exit of investors is possible by only trading on the stock exchanges. Due
to liquidity constraints posed by close-ended funds, they were soon rendered
obsolete and most of the prevailing schemes today are open-ended schemes.
By Composition of Debt and Equity in the Scheme:
> Growth Schemes
>Income Schemes
>Balanced Schemes
>Money Market Schemes
The products were also differentiated by the composition of equity and debt in
various schemes. Growth schemes invest predominantly in equities whereas
Income schemes invest only in fixed income debt securities. Balanced schemes try
to derive the benefits of both equity and debt by investing in both. Money market
schemes invest in short term liquid securities like money market instruments so
that they serve as appropriate products for investing short term funds.
There were other niche schemes to fulfill specific needs, such as Tax Saving
Schemes, Sector Specific Schemes, Index Schemes (which are passively invested
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in a benchmark Index) and so on.In the Product Focus stage, the aim of the mutual
fund companies was to introduce a wide variety of products and due to
oligopolistic competition.
Customer Ownership Focus
Mutual fund companies began to segment their target customers and position their
various products based on the target segment they proposed to address. The target
segment was broadly divided into institutional segment and individual investor
segment. The institutional segment consisted of treasury departments of Corporate,
Trusts etc and suitable products such as Institutional Income schemes and Money
Market schemes were targeted at them. The individual investor was in turn divided
into various segments such as Young Families with small or no children, Middle-
aged People saving for retirement and Retired People looking for steady income.
Suitable products such as Growth and Balanced schemes for young families and
Income schemes for retired people were marketed.
By proper segmentation and by targeting the right product to the right customer,
Mutual Fund companies hoped to win the confidence of their customers and 'own'
them for a lifetime.
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Specialized Product & Service Focus
If one observes the trends in the recent past, Companies have been taking the
above customer focus further by designing and launching specialized products and
services. As awareness levels of individual investors go up, focus is on identifying
one's investment needs depending on one's financial goals, risk taking ability and
time horizon. Investors chose companies, which help them in the above through
specialized products and services.
For example, a common financial goal is to save and invest for meeting the
education needs of children. A number of mutual funds such as Pru-ICICI Mutual
Fund and UTI Mutual Fund have launched products that are designed to serve this
specific need. A similar such need is planning for a comfortable retirement.
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Non Banking Financial Companies
Non-Banking Financial Companies (NBFCs) are a set of financial service
companies that are quite unique to India in terms of their size and the range of
services provided by them. The services provided by NBFCs range from retail
service such as loans, leasing and hire purchase financing, brokerage and
distribution services; to bill discounting and syndication services to corporate
customers. Till early 1990s, when NBFCs were at their peak, most retail customers
would approach an NBFC rather than a bank for all their financial service needs.
However, since its peak in the mid-1990s when public deposits held by NBFCs
increased to 9.5 per cent of bank deposits, this sector saw a steep decline.
Aggregate public deposits of NBFCs as a percentage of bank deposits came down
to 1.5 per cent by March 2003 .
Till 1990s, NBFCs constituted a significant part of the Indian financial services
industry and complemented the services provided by a bank. They were a
heterogeneous group of intermediaries of varying size and provided a range of
services. They were characterized by their ability to provide niche financial
services and due to their relative organizational flexibility; they were often able to
provide tailor-made services relatively faster than banks and financial institutions.
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This enabled them to build up a wide-ranging clientele from small borrowers to
establish corporate.
Based on the principal activity carried out by the company, NBFCs were classified
by RBI under five main categories - Equipment leasing company (EL), Hire
Purchase finance company (HP), Investment company (IC), Loan company (LC)
and Residuary non-banking company (RNBCs - large companies not coming under
any one particular category). NBFCs achieved their zenith in early 1990s. Their
accelerated expansion in 90s was driven by the opportunities created by the
process of financial liberalization. However, their rapid growth resulted in
unhealthy practices and certain disconcerting developments. In response to this,
RBI considerably tightened its supervisory and regulatory framework over NBFCs
in 1998. Some of the new measures of Hire purchase finance, mostly consisting of
retail funding of cars, commercial vehicles and consumer durables were the
primary activity, followed by loans and inter-corporate deposits.
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COMPANY PROFILE
UNICON INVESTMENT SOLUTIONS
UNICON is a financial services company which has emerged as a one-stop
investment solutions provider. It was founded in 2004 by two visionary and
flamboyant entrepreneurs, Mr. Gajendra Nagpal and Mr. Ram M. Gupta, who
possess expertise in the field of Finance. The company is headquartered in New
Delhi, and has its Corporate office in Mumbai with regional offices in Kolkata,
Chennai, Hyderabad and Noida
UNICON is a professionally managed company, lead by a team with outstanding
managerial acumen and cumulative experience of more than 200 years in the
financial markets. The company is supported by more than 3500 Uniconians and
has an extensive network of over 100 branches, 600 plus business partner locations
& 2500 remisers providing it with a national footprint.
With a customer base of over 200,000, the UNICON Group has an eye for the
intricate financial needs of its clients and caters to both their short term and long
term financial needs through a comprehensive bouquet of investment services.
These services range from offline & online trading in equity, commodities and
currency derivatives to debt markets to corporate finance and portfolio
management services. The company has a sizable presence in the distribution of
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3rd party financial products like mutual funds, insurance products and property
broking. It also provides expert Advisory on Life Insurance, General Insurance,
Mutual Funds and IPO’s. The distribution network is backed by in-house back
office support to provide prompt and efficient customer service
The Equity broking arm – UNICON Securities Pvt. Ltd offers personalized
premium services on the NSE, BSE & Derivatives market. The Commodity
broking arm Unicon Commodities Pvt. Ltd offers services in Commodity trading
on NCDEX and MCX. The UNICON group also has a PCG division providing
investments solutions for High Net Worth Individuals. The Corporate Advisory
Services arm – Unicon Capital Services (P) Ltd offers entire gamut of Investment
Banking services to corporates.
UNICON can boast of some of the most respected names in the Private Equity
space like Sequoia Capital and Nexus India Capital as its share holders.
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Mission & Vision
Mission :
To create long term value by empowering individual investors through superior
financial services supported by culture based on highest level of teamwork,
efficiency and integrity.
Vision :
To provide the most useful and ethical Investment Solutions - guided by values
driven approach to growth, client service and employee development.
52
MANAGEMENT TEAM
Mr. Gajendra Nagpal
Founder & CEO
Mr. Ram M Gupta
Co-Founder & President
Mr. Y.P. Narang
Head - Fixed Income Group
Mr. Sandeep Arora
Chief Operating Officer
Mr. Vikas Mallan
Chief Financial Officer,
Head – Distribution
Mr. Trinadh Kiran
National Head(E-Broking)
Mr. Subhash Nagpal
Director - Strategic
Planning & Distribution
Ms. Anjali Mukhija
Chief Compliance Officer
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Mr. Vijay Chopra
National Head (Business Alliances)
Mr. Anurag Nayar
Chief Technology Officer
Mr. Ashish Kukreja
Head HNI Client Relations
Ms. Deepa Mohamed
Head -HR & Training
Mr. Sandeep Mahajan
Head (Equity Broking-Offline
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Unicon Tie up with various insurance companies:
1. Tata AIG life insurance
2. SBI life insurance
3. Max new York life insurance
4. Reliance
5. Birla sun life
6. Life insurance corporation of india
7. Kotak Mahindra
8. Met life
9. ICICI prudential
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PRODUCT
EQUITY
UniconPlus
Browser based trading terminal that can be accessed by a unique ID and password.
This facility is available to all our online customers the moment they get registered
with us.
Features:
Trading at NSE,BSE and Derivatives on single screen.
Add multiple scrips on the market watch.
Greater exposure for trading on the available margin.
Common window for display of market watch and order execution.
Real time updating of exposure and portfolio while trading.
Offline order placement facility.
Stop-loss feature.
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Competitive Brokerages.
Banking integration with ICICI Bank, HDFC Bank & Axis Bank.
Proxy link to enable trading behind firewalls.
UniconSwift
Application based terminal for active traders. It provides better speed, greater
analytical features & priority access to Relationship Managers.
Features:
Trading at NSE,BSE and Derivatives on single screen.
Add any number of scrips in the Market Watch.
Tick by tick live updation of Intraday chart.
Greater exposure for trading on the margin available
Common window for market watch and order execution.
Key board driven short cuts for punching orders quickly.
Real time updation of exposure and portfolio.
Facility to customize any number of portfolios & watch lists.
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Market depth, i.e. Best 5 bids and offers, updated live for all scripts.
Facility to cancel all pending orders with a single click.
Instant trade confirmations.
Banking integration with ICICI Bank, HDFC Bank & Axis Bank,& Bank of
India,& Corporation Bank, & Karnataka Bank, & Oriental bank of Commerce, &
South Indian Bank, & Vijay Bank and Yes Bank.
Stop-loss feature.
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Commodity
Unicon offers a unique feature of a single screen trading platform in MCX and
NCDEX.Unicon offers both Offline & Online trading platforms. You can Walk in
or place your orders through telephone at any of our branch locations
Online Commodity Internet trading Platform through UniFlex.
Live Market Watch for commodity market (NCDEX, MCX) in one screen.
Add any number of scrips in the Market Watch.
Tick by tick live updation of Intraday chart.
Greater exposure for trading on the margin available
Common window for market watch and order execution.
Key board driven short cuts for punching orders quickly.
Real time updation of exposure and portfolio.
Facility to customize any number of portfolios & watchlists.
Market depth, i.e. Best 5 bids and offers, updated live for all scripts.
Facility to cancel all pending orders with a single click.
Instant trade confirmations.
Stop-loss feature.
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Depository
Unicon Depository Services offers dematerialization services as a participant in
Central Depository Services Limited (CDSL), through its Depository operations.
The company believes in efficient and cost-effective and integrated service support
to its brokerage business. Unicon Securities Private Limited, as a depository
participant, will offer depository accounts for individual investors as well as
corporates which will enable them to transact in the dematerialized segment,
without any hassles.
Depository offer a safe, convenient way to hold securities as compared to holding
securities in paper form. Our service provides an integrated single platform for all
our clients ensuring a risk free, efficient and prompt depository process.
Facilities Offered by Unicon
* De-materialization:
You can submit your physical shares at the Unicon branch for
dematerialization into electronic form.
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* Re-materialization:
You can also request for Re-materialization which enables you to convert
the dematerialized shares into physical form.
* Transfer:
Inter and intra depository services are available through which you can
transfer shares.
* IPO:
You can apply for IPO using your demat account details and on allotment
the securities are transferred directly to your demat account.
* Corporate Actions:
While holding your stock in demat account, in case you are eligible for any
bonus and rights issues the allotment would be transferred to your demat
account.
* Easi:
You can view your demat account over the Internet and avail a host of services.
This facility empowers our clients to view, download, print updated holdings with
respective valuations.
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IPO
At Unicon you can invest in the Primary markets (Initial Public Offerings)
online without going through the hassles of filling up any IPO application forms or
any other paperwork.
We shall make sure that you do not miss the opportunity to subscribe/invest in a
good IPO issue by providing you an online IPO application form, transfer of funds
online through secured payment Gateways of leading banks like ICICI, HDFC,
AXIS bank.
In addition to the above we shall provide you with the In-Depth analysis of the IPO
issues which shall be hitting the Indian Markets in near future, IPO Calendar,
analysis on the recent IPO listings, prospectus, offer documents and other IPO
research reports so as to help you take an informed decision to invest in the IPO
issues.
Online IPO facility is open to all our registered clients at no cost whatsoever. All
you need is the following to subscribe online to the IPO issues:
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A trading account with Unicon
A Demat account with Unicon
An access to the net banking facility with the Banks through which Unicon has
operational Gateway facility (ICICI, HDFC and AXIS Bank).
You must have signed a Power of Attorney (POA) agreement for applying in
IPO’s online.
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Mutual Fund
Unicon Provides expert advice to its clients for their investments in equity & debt
markets through Mutual Funds.
Our experts advice you the best investment solutions that suit you and help you to
reach your financial goals.
They help you ascertain your risk profile & guide you with the right product mix
which reduce your tax liability, increase your savings & enhance your wealth.
Whether you have a conservative, medium or aggressive investment risk appetite,
our experts would guide you to build a portfolio to optimize the return of interest.
Classification of mutual fund:
1. By structure
Open-ended scheme
Closed-ended scheme
Interval schemes
2. By investment objective
Growth schemes
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Income schemes
Balanced schemes
Money market schemes
3. By Other Schemes
Tax saving schemes
Special schemes
Index Schemes
Sector specific schemes
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Insurance
Unicon offers all products of General Insurance under one umbrella. Unicon
comprises of a team of distinguished professionals from insurance, finance and
other management disciplines who have vast business & managerial experience.
Unicon team evaluates the client's business environment and studies the risk
profile. based on the results of these evaluations, Unicon team then suggests the
most cost effective , integrated insurance package that is perfectly suited to the
client's risk profile.
Unicon has a nationwide network of branches all over India, equipped with top
quality infrastructure facilities, to provide you prompt & efficient service.
Life Insurance
Unicon offers you a Peace of Mind by offering various life insurance plans for
your unique & specific needs. Our philosophy is that for every financial problem,
there is a solution also. And we are here to give you complete financial solutions.
At the same time we offer you very Prompt & Reliable Policy related service for
enduring relationship.
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They offer a very wide range of products to fulfill your particular requirements.
You can always have an access to our 83 Branch Offices situated at prime
locations of the city, or you can call our Relationship Manager to guide on your
Investments.
Following is the glimpse of Life Insurance Plans:
Protection Plans
Investment Plans
Child Plans
Retirement/Pension Plans
Saving Plans
NRI Plans
Health Plans
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Investment Banking
Overview
The Investment Banking arm of Unicon Capital Services (P) Ltd. caters to the
funding requirements of corporates. Our wide experience and market knowledge as
a leading securities firm ensures that clients’ requirements are met at optimum
cost. By constantly improving our knowledge capital and remaining focused on
client needs, we aim to create significant value for our clients by helping them
execute the right capitalization strategy. We also intend to initiate merchant
banking services (Capital Markets Fundraising) in the short term (Merchant
Banking License pending)
Offerings
Private Equity (PE) Syndication
They specialize in the syndication of the private equity for the Indian companies in
high-growth markets on their capitalization/re-capitalization strategies, which
helps them to achieve their growth targets. Our team of professionals ensures
complete confidentiality, strong focus on implementation and quick turnaround
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time. Access to key decision makers at PE funds gives us an edge in optimal
structuring and efficient closure of transactions. They service their clients through
various stages of the PE deal namely collateral preparation, investor short listing,
commercial term sheet, due diligence and final closure.
Mergers & Acquisitions (M&A) Advisory
They provide both buy-side and sell-side advisory services as part of their M&A
advisory offering. They advise clients during the entire transaction process right
from target identification to deal closure. They have an experienced and highly
qualified team with more than 40+ man-years of experience which specializes in
identification and short listing of potential targets, strategic planning of an
acquisition and arranging capital for the transaction, if needed.
Debt Syndication
Our offerings include:
Project Finance / Term Loans for Expansion - Arranging Long-term loans
for setting up new projects from Financial Institutions and Banks
External Commercial Borrowings (ECBs) - Arranging LIBOR-linked loans
Foreign Currency Convertible Bonds (FCCB)-Arranging FCCB Loans
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Working Capital Facilities - Arranging fund-based and non-fund based
limits for clients from Banks at competitive rates
Trade Finance - Arrangement of trade finance (Buyer's / Supplier’s Credit)
Inter-Corporate Deposits – Borrowing and Placement
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OBJECTIVES OF THE STUDY
To find the market potential and market penetration of UNICON
INVESTMENT SOLUTION product offerings in New delhi.
To collect the real time information about preference level of customers
using Demat account and their inclination towards various other brokerage
firms e.g. Indiabulls, Sharekhan, Indiainfoline, Religare, Alankit , Unicon.
To expand the market penetration of UNICON INVESTMENT SOLUTION.
To provide pricing strategy of competitors to fight cut throat competition. To
increase the product awareness of UNICON INVESTMENT SOLUTION as
single window shop for investment solutions
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RESEARCH METHODOLOGY
Research design and methodology
It was important to collect detailed information on various aspects for effective
analysis. As “Marketing today is becoming more of a battle based on information
based society companies with superior information enjoys a competitive
advantage.
Methodology Adopted
The information was collected through person interview and interview was
conducted through the mode of questionnaire.
Analysis of Data
Data collection
The data collection was collected through primary as well as secondary source.
PRIMARY DATA :
Primary data was collected from 155 respondents using a schedule of question and
a survey was conducted. The tabular and graphical data was Microsoft excel.
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SECONDARY DATA :
Secondary data was collected mainly from internet ,printed journals on the capital
markets of India ,newspaper articles and books written on the Indian stock
markets.
SAMPLING:
Judgment, non-random sampling was used. Respondents were request to
help with the schedule at their offices, homes or at the UNICON
INVESTMENT SOLUTION office.
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DATA ANALYSIS
DATA ANALYSIS
1. preference of investment
FIG4.5.1 Result of preference of investment
Interpretation:This data shows that the mutual fund market is on the rise yet,so the most favored investment continues to be in the share market.so with the more transparent system,investment in the market can definitely be increased.
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a. Awareness of unicon facilities
Fig4.5.4 Result of Awareness of unicon facilities
Interpretation:although there is sufficiently high brand equity among the target audience yet,it is to be noted that the consumer are not aware of the facilities provided by company meaning thereby company should concentrate more towards promotional tools and increase it focus on product awareness rather than brand awareness.
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2.Awareness of unicon investment solutions
as a brand
Fig 4.5.2 Result 0f Awareness of unicon as a brand
Interpretation: This graph chart shows that unicon has a reasonable amount of brand awareness in terms of a investment company.this brand image should be further leveraged by the company to increase its market share over its competitors.
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Awareness on Online Share Trading
Fig4.5.2 Result of Awareness of Online Share Trading
Interpretation: With the increase in cyber education, the awareness towards
online share trading has increased by leaps and bounds. This awareness is expected
to increase further with the increase in Internet education.
1. Awareness of UNICON INVESTMENT SOLUTION Invest smart
as a Brand
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Fig4.5.3 Result of Awareness of Reliance money as a Brand
Interpretation: This pie-chart shows that reliance money has a reasonable amount
of Brand awareness in terms of a premier Retail stock broking company. This
brand image should be further leveraged by the company to increase its market
share over its competitors.
2. Satisfaction Level among Customers with current broker
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Fig4.5.5 Result of satisfaction level among customers with current broker
Interpretation: This pie-chart corroborate the fact that Strategic marketing, today,
has gone beyond only meeting Sales targets and generating profit volumes. It
shows that all the competitors are striving hard not only to woo the customers but
also to make them Brand loyal by generating customer satisfaction.
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Frequency of Trading
Fig4.5.6 Result of Frequency
of Trading
Interpretation: Inspite of the huge returns that the share market promises, we see
that there is still a dearth of active traders and investors. This is because of the non
– transparent structure of the Indian share market and the skepticism of the target
audience that is generated by the volatility of the stock market. It requires efficient
bureaucratic intervention on the part of the Government.
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3. Percentage of earnings invested in Share Trading
Interpretation: This shows that people invest only upto 10% of their
earnings in the stock market, again reiterating the volatile and non-transparent
structure of the Indian stock market. Hence, effective and efficient steps should be
undertaken to woo the customers to invest more in the lucrative stock market.
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Fig4.5.7 Result of percentage of earning invested
in share trading
CONCLUSIONS
To get initial success in this field is very difficult. Although the business
generation becomes easier with time as we serve more people who then get added
up in the loyal clientage. Thus time and service are two most factors to get in this
field.
Also the corporate remains a very important segment which gets business in bulk
but retail cannot be ignored which makes your business ticking.
Customer remains in the pivotal position.
Based on the findings of our project we would like to suggest the following:-
1. After sales services and follow up calls are important for getting new
references so trained telesales should be appointed for this purpose whose
sole work should be to make feedback calls.
2. Investment is having too many financial products right from Demat account
to General Insurance and not all the salespeople are familiar with each and
every product so the work force should be segregated each group dealing in
a specific product and the sales target should be given likewise.
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3. While interacting with the investors I found that most of the customers are
unaware about the Mutual fund. Some of the people look upon mutual funds
and equity trading as gambling. Thus a mutual fund awareness program can
help to increase the penetration of mutual funds in the market.
4. INVESTSMART should declare in black ink that they will charge just 1
paisa per transaction. People tend to think that there must be some hidden
charges.
5. Rs950 account opening charges are too high when targeting a corporate so
the company should be flexible on this amount.
6. INVESTSMART should provide periodic training for updating the product
knowledge of various financial advisors.
7. Company should have a scheme of rewards and recognition to employees
and the field persons to boost their motivation.
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KEY ISSUES AND CONCLUSIONS
Based on the above SWOT analysis and study of the available data I have come
to the following conclusions:
HUGE POTENTIAL:
1. All though relatively new entrants in the market, INVESTSMART is slowly
but surely gaining a strong hold because it is finally able to grasp the
investment climate in Delhi. Secondly the branch managers at all the
branches are very knowledgeable with a lot of experience in the financial
markets so under their leadership can definitely expand its base
2. The entire workforce consists of mostly youngsters, which means they can
be encouraged and motivated to do good work because they have a long way
to go and most of them are eager to climb the ladder.
3. Right now Reliance is at its nascent stage and will surely grab the major
market under its belt very soon like in other fields.
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Huge investments taking place:
a. The Stock Market has been very buoyant until now especially in the
past 3 years. This particular trend is very favorable because a soaring
SENSEX means higher returns, which encourages the investors to
invest their money in the market. Although in the past 3 months the
market has shown very unpredictable trend and has already lost over
1000 points.
b. So in order to make the best the only thing required is to recruit more
field staff who should be trained in a proper way to get better results.
c. In case of insurance, it requires push selling because people always
associate it with emergencies and unpleasant situations like death and
they don’t want to think about such situation let alone prepare for
them, which means it requires a lot of conviction on part of the
executives.
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Large untapped market:
• People have just opened up to the idea of ULIPs because till now they knew
only two kinds of insurance plans, endowment and term plans so the concept of
high returns with protection is very new to them and slowly and slowly these are
becoming popular so there is a huge market waiting to be tapped.
• In the past few years there has been a tremendous inflow of funds in the
Indian market which has lead to the sky rocketing SENSEX. In fact there has been
a tremendous response from the investors not only in shares but mutual funds as
well. The Rs5700Cr infused in the market through the HSBC INVESTSMART
Equity mutual Funds is an example of the growing trust of investors who earlier
shied from such investments due to stock market fiascos like the Harshad Mehta
scam or the US64 disaster in which investors lost huge amounts of money as well
as their trust in financial instruments.
• With the FDI limits being relaxed, a lot of avenues will open up in the
insurance sector and insurance companies are expected to come up with new plans
with a great deal of customization and flexibility.
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RECOMMENDATIONS
The company should effectively focus on advertising.
The company should make more aware to the customer about their investment process.
Company must provide full information to their employee about sector and there product and services in which its deals.
Company basically deals in customer relationships it must provide more and more training and development programme to their relationship manager.
Company must focus on the need and wants of the customer as well as after sales services, to make the customer more loyal.
Company must give reliable and full information to their customer about their product and services, and also there benefits.
Company should take care of their employee by giving them cash incentive or taking those people abroad who have achieve their target or make a large-volume of sales. And also give catered meals to staff that work long hours or those working during peak hours.
Lastly taking the feedback from customer so as to better tune its services with the customer needs.
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LIMITATIONS
Limitations and Constraints
Time Constraints :
Time is that factor which cannot be hold by anyone, ones it goes never comes
back.
The researcher found lack of time and done a precise in-dept study and bring out
the available data and information.
Resource Constraints:
Earlier there was not that much researches had been conduct on this topic, so the
researcher find it difficult to group the information and get the best output.
As the researcher had only used the secondary data the lack or impropriety in the
secondary data will also present in the research project
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APPENDIX
QUESTIONNAIRE
Q1. In which of these Financial Instruments do you invest into?
Shares Mutual Funds Bonds Derivatives
Q2. Are you aware of online Share trading?
Yes No
Q3. Heard about UNICON INVESTMENT SOLUTION INVESTSMART?
Yes No
Q4. Do you know about the facilities provided by UNICON INVESTMENT
SOLUTION INVESTSMART?
Yes No
Q4. Do you know about the facilities provided by UNICON INVESTMENT
SOLUTION INVESRTSMART?
Yes No
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Q5. With which company do you have your DEMAT account?
Reliance money ICICI Direct UNICON India Bulls
Others (please specify)
Q6. What differentiates your Share trading company from others? (in regards
of brokerage, satisfaction, services, products )
Q7. Are you currently satisfied with your Share trading company?
Yes No
Q8. How often do you trade?
Daily Weekly Monthly Yearly
Q9. What percentage of your earnings do you invest in share trading?
Up to 10% Up to 25% Up to 50% Above 50%
Q13. How do you rate these share trading companies?
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a. Reliance money b. ICICI Direct c. India Bullsd. IL&FS
INVESTSMART e. Others (Please
1. 2. 3.
4. 5.
Q14. What more facilities do you think you require with your DEMAT
account?
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BIBLIOGRAPHY
Articles
Capital Market Review 2003-04,Published by SHCIL
Books
Financial Management Prashanna Chandra,6th edition
Financial Management Khan & Jain ,3th edition
Securities Analysis and Portfolio Management ,Fischer & Jordon
Research Methodology, David .R. Cooper and Schindler
Websites
www.unicon.co.in
www.icicidirect.com
www.investsmart.com
www.nseindia.com
www.economicstimes.com
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