Portfolio Mgt Services

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NR Post Graduate Institute of Business Management

Gujarat Technological University

Master of Business Administration Program

Summer Internship Report

STUDY ON PORTFOLIO MANAGEMENT SERVICES STRATEGIESAND INVESTORS AWARENESS AND PREFRENCE FOR IT

At

Motilal Oswal Securities Ltd.

:Submitted By:

JAYDEEPSINGH RAO

Batch 2009-2011

Roll no # 00977


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A

RESEARCH PROPOSAL

On

STUDY ON PORTFOLIO MANAGEMENT SERVICES STRATEGIESAND INVESTORS AWARENESS AND PREFRENCE FOR IT

In Partial Fulfillment of the Project Study in Masters

of Business Administration Programme of Gujarat

Technological University

Submitted to:

N.R.Institute of business management

Submitted by: Project Guide:

JAYDEEPSINGH RAO PROF. NISHSTHA ASRANI

BATCH 2009-2011 PROF. NEHA PATEL


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Introduction PMS:

In today's complex financial environment,

investors have unique needs which are derived from their risk appetite and financial goals. But

regardless of this, every investor seeks to maximize his returns on investments without capital

erosion. While there are many investment avenues such as fixed deposits, income funds,

bonds, equities etc It is a proven fact that Equities as an asset class typically tend to

outperform all other asset classes over the long run. Investing in equities, require knowledge,

time and a right mind-set. Equity as an asset class also requires constant monitoring may not

be possible for you to give the necessary time, given your other commitments. We recognize

this, and manage your investments professionally to achieve specific investment objectives and

not to forget, relieving you from the day to day hassles which investment require. Motilal Oswal

Securities Ltd brings with more than 2 decades of experience & expertise in equity research and

stock broking. We are one of the leading portfolio service providers, with asset under

management worth Rs. 590 Crores. When you invest through our PMS, you can be assured of

the best research being used for the investment decisions. Our equity research has been

consistently ranked very highly in surveys conducted by leading international publications like

Asia Money and Institutional Investor.
http://www.motilaloswal.com/mosl/Mutual_Funds/http://www.motilaloswal.com/http://www.motilaloswal.com/http://www.motilaloswal.com/mosl/equity/http://www.motilaloswal.com/MOSL/Portfolio_Management_Sevices/http://www.motilaloswal.com/mosl/Mutual_Funds/http://www.motilaloswal.com/http://www.motilaloswal.com/http://www.motilaloswal.com/mosl/equity/http://www.motilaloswal.com/MOSL/Portfolio_Management_Sevices/


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COMPANY PROFILE

Introduction:

Motilal Oswal Securities Ltd. (MOSL) was founded in 1987 as a small

sub-broking unit, with just two people running the show. Focus on customer-first-attitude,

ethical and transparent business practices, respect for professionalism, research-based value

investing and implementation of cutting-edge technology has enabled us to blossom into an

almost 2000 member team.

Today we are a well diversified financial services firm offering a range of financial products and

services such as Wealth Management ,Broking & Distribution , Commodity Broking, Portfolio

Management Services , Institutional Equities, Private Equity ,Investment Banking Services and

Principal Strategies.

We have a diversified client base that includes retail customers (including High Net worthIndividuals),mutual funds , foreign institutional investors, financial institutions and corporate

clients. We are headquartered in Mumbai and as of March 31st, 2010, had a network spread over

584 cities and towns comprising 1,397 Business Locations operated by our Business Partners

and us. As at March 31st, 2010 we had 6,21,215 registered customers.
http://www.motilaloswal.com/http://www.motilaloswal.com/mosl/Broking_and_distribution/http://www.motilaloswal.com/mosl/Broking_and_distribution/http://www.motilaloswal.com/mosl/Broking_and_distribution/http://www.motilaloswal.com/mosl/Private_Equity/http://www.motilaloswal.com/mosl/Private_Equity/http://www.motilaloswal.com/mosl/Investment_Banking/http://www.motilaloswal.com/mosl/Mutual_Funds/http://www.motilaloswal.com/mosl/Mutual_Funds/http://www.motilaloswal.com/http://www.motilaloswal.com/mosl/Broking_and_distribution/http://www.motilaloswal.com/mosl/Private_Equity/http://www.motilaloswal.com/mosl/Investment_Banking/http://www.motilaloswal.com/mosl/Mutual_Funds/


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Markets and Network:

Founded in 1987 as a small sub-broking unit, MOSL is today

recognized as a well diversified financial services firm, which offers a range of financial

products and services such as wealth management, broking and distribution, commodity broking,

portfolio management services, institutional equities, private equity, investment banking services

and principal strategies.

MOSL hopes to add franchisees with a good track record and a reputation in financial services or

social circles/other business/social circles with a good client base.

MOSL gives marketing and sales support in which one relationship manager will be assigned to

the franchisee for regular research advice and market updates through chat-phone-emails.

Franchise Facts

Operational : 1987,Franchising : 1990,Units : 1,293,Business:Financial services, Investment :

Rs 5-10 lakhs, RETURN ON INVESTMENT (Rol) : 20-200 % , Agreement : NA, Area : 250

sq.ft. Employees Required : 4 .Marketing and business development support on a regular basis,

MOSL also gives a start-up kit comprising of glow sign skin, visiting cards, marketing brochures

to help the franchisees in starting the business. The company also assigns a customer serviceexecutive for routine queries through chat, phone and emails and offers a centralized web-based

back office access to the franchisee. With a focus on research based advisory and superior

customer experience; MOTILAL OSWAL SECURITIES LTD is expanding its reach multifold

to address the needs of a latent market waiting to explode in the next trillion dollar GDP growth

era.


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OBJECTIVES OF THE STUDY :

To study different strategies of PORTFOLIO MANAGEMENT SERVICES of

MOTILAL OSWAL SECURITIES LTD.

To explore the investors preferences towards Portfolio Management Services.

STUDY INVESTORS AWARENESS FOR THE SAME

2) RESEARCH DESIGN :

DESCRIPTIVE RESEARCH

3) RESEARCH METHODOLOGY:

Sources of Data Collection

Primary data and Secondary data from Company and survey.

Data collection:

Primary data sources: Questionnaire survey of various respondents in Ahmadabad.

Secondary data sources:

Data collected from various past surveys, internet and journals.


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4) TIME SCHEDULE

Analyzing research problem, deciding methodology and design 1 Week,

Data Collection (Secondary) 3 Weeks, Analyzing the findings 2 Weeks,

Report and Presentation preparation 2 Weeks

BENEFICIARIES:

The Industry, Company and Society.

This project will be useful to the Companies who deal in PMS.

This project will provide a better insight to the individuals who want to gain

knowledge about different INVESTMENT STRATEGIES of PMS.

This project will also be useful for the students for future references.

RESEARCHERS PROFILE:

The researcher JAYDEEPSINGH is the Student of full time MBA program at N.R. Institute of

Business Management. He has completed his graduation from GUJARAT University,

AHMEDABAD.


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PREFACE

Today world become global village due to globalization economic development,

liberalization and e-commerce, which has opened new avenue for development in the industrial

area. So, more demand of able and practical managers who are to solve the problem and face any

kind of challenges.

As a student of M.B.A. program they have to work hard and practical training or summer

training is a part of their study. At M.B.A. level the student are required to choose a subject of

their own choice and they have to deeply research in the topic and prepare a detailed report of

their project. So I choose the research on To find out awareness and interest about

PMS/EVALUATION OF PMS

This practical training has given me an existing marvelous experience of visiting

different type of persons. These persons have different beliefs, nature, opinion, which has given

me something new than what I had got during last two semester of M. B. A. I have tried my best

to make this report as much success as possible.

In this report, I have shown different information, solution, and analysis on the above

mentioned topic.


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EXECUTIVE SUMMERY

The company was founded in 1987 as a small sub-broking unit, with just two people

running the show. Mr. Motilal Oswal is the promoter of Motilal Oswal Securities Ltd. He is a

member of Institute of Chartered Accountants of India and started the business along with the

co-promoter Mr. Raamdeo Agarwal in 1987. Business Administration is his forte, Honesty,

transparency and client goodwill form the core of his business practice

PMS is nothing but Portfolio Management Service where a complement of experienced

professionals invests your money in equity markets and other instruments, with the solitary focus

of growing your money at an appreciable rate.

This project assigned me was initially to find out effective pool of respondents who are

STUDY ON PORTFOLIO MANAGEMENT SERVICES STRATEGIES

AND INVESTORS AWARENESS AND PREFRENCE FOR IT

To meet my objective I have selected a method of survey and it was by direct interview,

prior to survey my training was conducted by the company and then fieldwork started.

In my survey I found that maximum of the respondents invest for the long term 77% while

only 23% invest for the short period of time.

In my research I found that maximum respondents agree that trust base investment gives

good return 38% people favor it while others say that it does not give good return on

investment

As per my survey I found that 40% of the respondents are aware about PMS, while 60%

respondents do not aware about PMS


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Table of Content

General Information 1

Introduction

Driving Force

Organization Structure

MOSL History and Milestone

End to End Equity Solutions

Services Provided By MOSL

Portfolio Management Service 24

Introduction

Different Kind Of PMS

Value PMS

Features of Value PMS

Bulls Eye PMS

Features of Bulls Eye PMS

The Focused Strategy Series I PMS

Features of The Focused Strategy I PMS

Trillion Dollar Opportunity Strategy PMS

Features of Trillion Dollar Opportunity Strategy PMS

Risk Factor

Nature of Expenses

Taxation

Accounting Policies


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Types Of Analysis 56

Introduction

Technical Analysis

Fundamental Analysis

Wealth Creation Study

PRIMARY DATA RESEARCH

61

Objectives of the research

Research methodology

ANALYSIS OF QUESTIONNARE

64

SWOT ANALYSIS

77

FINDINGS

81

SUGGESTIONS

83

BIBLIOGRAPHY

85

Questionnaire 87


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BROAKING INDUSTRY OVERVIEW

Broking Insights

The Indian broking industry is one of the oldest trading industries that has been around even

before the establishment of the BSE in 1875. Despite passing through a number of changes in

the post liberalization period, the industry has found its way towards sustainable growth. With

the purpose of gaining a deeper understanding about the role of the Indian stock brokingindustry in the countrys economy, we present in this section some of the industry insights

gleaned from analysis of data received through primary research.

For the broking industry, we started with an initial database of over 1,800 broking firms that

were contacted, from which 464 responses were received. The list was further short listed based

on the number of terminals and the top 210 were selected for profiling. 394 responses, that

provided more than 85% of the information sought have been included for this analysis

presented here as insights. All the data for the study was collected through responses received

directly from the broking firms. The insights have been arrived at through an analysis on

various parameters, pertinent to the equity broking industry, such as region, terminal, market,

branches, sub brokers, products and growth areas.

Some key characteristics of the sample 394 firms are:


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On the basis of geographical concentration, the West region has the maximum

representation of 52%. Around 24% firms are located in the North, 13% in the South and

10% in the East

3% firms started broking operations before 1950, 65% between 1950-1995 and 32% post

1995

On the basis of terminals, 40% are located at Mumbai, 12% in Delhi, 8% in Ahmedabad,

7% in Kolkata, 4% in Chennai and 29% are from other cities

From this study, we find that almost 36% firms trade in cash and derivatives and 27% are

into cash markets alone. Around 20% trade in cash, derivatives and commodities

In the cash market, around 34% firms trade at NSE, 14% at BSE and 52% trade at both

exchanges. In the derivative segment, 48% trade at NSE, 7% at BSE and 45% at both,

whereas in the debt market, 31% trade at NSE, 26% at BSE and 43% at both exchanges

Majority of branches are located in the North, i.e. around 40%. West has 31%, 24% are

located in South and 5% in East

In terms of sub-brokers, around 55% are located in the South, 29% in West, 11% in

North and 4% in East

Trading, IPOs and Mututal Funds are the top three products offered with 90% firms

offering trading, 67% IPOs and 53% firms offering mutual fund transactions

In terms of various areas of growth, 84% firms have expressed interest in expanding their

institutional clients, 66% firms intend to increase FII clients and 43% are interested in

setting up JV in India and abroad

In terms of IT penetration, 62% firms have provided their website and around 94% firms

have email facility

Terminals

Almost 52% of the terminals in the sample are based in the Western region of India, followed by

25% in the North, 13% in the South and 10% in the East. Mumbai has got the maximum


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representation from the West, Chennai from the South, New Delhi from the North and Kolkata

from the East.

Mumbai also has got the maximum representation in having the highest number of terminals.

40% terminals are located in Mumbai while 12% are from Delhi, 8% from Ahmedabad, 7% from

Kolkata, 4% from Chennai and 29% are from other cities in India.

Branches & Sub-Brokers

The maximum concentration of branches is in the North, with as many as 40% of all branches

located there, followed by the Western region, with 31% branches. Around 24% branches are

located in the South and East constitutes for 5% of the total branches of the total sample.

In case of sub-brokers, almost 55% of them are based in the South. West and North follow, with

30% and 11% sub-brokers respectively, whereas East has around 4% of total sub-brokers.

Financial Markets

The financial markets have been classified as cash market, derivatives market, debt market and

commodities market. Cash market, also known as spot market, is the most sought after amongst

investors. Majority of the sample broking firms are dealing in the cash market, followed by

derivative and commodities. 27% firms are dealing only in the cash market, whereas 35% are

into cash and derivatives. Almost 20% firms trade in cash, derivatives and commodities market.

Firms that are into cash, derivatives and debt are 7%. On the other hand, firms into cash and

commodities are 3%, cash & debt market and commodities alone are 2%. 4% firms trade in all

the markets.

In the cash market, around 34% firms trade at NSE, 14% at BSE and 52% trade at both

exchanges. In the equity derivative market, 48% of the sampled broking houses are members of

NSE and 7% trade at BSE, while 45% of the sample operate in both stock exchanges. Around


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43% of the broking houses operating in the debt market, trade at both exchanges with 31% and

26% firms uniquely at NSE and BSE respectively.

Of the brokers operating in the commodities market, 57% firms operate at NCDEX and MCX.

Around 20% and 21% firms are solely in NCDEX and MCX respectively, whereas 2% firms

trade in NCDEX, MCX and NMCE.

Products

The survey also revealed that in the past couple of years, apart

from trading, the firms have started offering various investment related value added services.

The sustained growth of the economy in the past couple of years has resulted in broking firms

offering many diversified services related to IPOs, mutual funds, company research etc.

However, the core trading activity is still the predominant form of business, forming 90% of the

firms in the sample. 67% firms are engaged in offering IPO related services. The broking

industry seems to have capitalised on the growth of the mutual fund industry, which was

pegged at 40% in 2006. More than 50% of the sample broking houses deal in mutual fund

investment services. The average growth in assets under management in the last two years is

almost 48%. Company research is another lucrative area where the broking firms offer their

services; more than 33% of the firms are engaged in providing company research services.

Additionally, a host of other value added services such as fundamental and technical analysis,

investment banking, arbitrage etc are offered by the firms at different levels.

Of the total sample of broking houses providing trading services, 52% are based in the West,

followed by 25% from North, 13% from South and 10% from the East. Around 50% of the

firms offering IPO related services are based in the West as compared to 27% in North, 13% in

South and 10% in East. In providing mutual funds services, the Western region was dominant

amounting to 49% followed by 27% from North; The South and the East are almost at par with

13% and 11% respectively.


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Future Plans

68% of the firms from the sample have envisaged strategies for future growth. With the middle

class Indian investor as well as foreign investor willing to invest in the stock market, majority

of the firms preferred expansion of institutional and the Foreign Institutional Investor clients in

their areas of growth. Around 84% have shown interest in expanding their institutional client

base. Nearly 51% of such firms are located in the West, 25% in North, 15% are from South and

9% from East. Since the past couple of years, India, along with Korea and Taiwan, has been one

of the preferred destinations for the FIIs. With corporate restructuring, rising market

capitalisation and sectoral friendly policies helping the FIIs, more than two thirds of the firmsare interested in increasing their FII client base. Amongst these firms, West again has maximum

representation of 53%, followed by North with 22%. South has 15% firms and East makes up

for 9%.


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INTRODUCTION

Motilal Oswal Securities Ltd is a leading research and advisory based stock broking

house of India, with a dominant position in both institutional and retail broking. MOSL was 'Rated

No.1 Best recommendations Mid & Small Caps' and won awards in 3 out of 4 categories at the

Starmine India Broker Rankings 2009 from Thomson Reuters. MOSL enters Limca Book of WorldRecords for creating Indias largest dealing room over 26,000 sq ft in Malad at Mumbai.

Asia money Brokers Poll 2008 has ranked MOSL the best Indian brokerage firm. There

are various other categories where they have been rated number one most independent research,

sales and service etc by the Brokers Poll.

The company was founded in 1987 as a small sub-broking unit, with just two peoplerunning the show. Focus on customer-first-attitude, ethical and transparent business practices,

respect for professionalism, research-based value investing and implementation of cutting-edge

technology have enabled them to blossom into an almost two thousand member team.


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Driving Force

Our Core Purpose

To be a well respected and preferred global financial services organization enabling

wealth creation for all our customers

Our Values

Customer interest is paramount

Ethical and transparent business practices

Respect for professionals, associates and business partners

Research based value investing

Cutting edge technology to ensure world-class customer service


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ORGANIZATION BRANCHES

Motilal Oswal

Securities

Limited

(MOSL)

Incorporated onJuly 5, 1994

Stock Broking(Institutional

& Retail)

Shareholding:MOFSL 99.95%

Motilal Oswal

commodities

brokers private ltd.

(MOCB)

Incorporated on

March 26, 1991

Commodity broking

Shareholding:

MOFSL 97.55%

Motilal Oswal

venture capital

advisor private ltd.

(MOVC)

Incorporated on

April 13, 2006

Private equityinvestment

Shareholding:

MOFSL 100%

Motilal Oswal

investment advisorprivate ltd.

(MOIA)

Incorporated on

March 20, 2006

Investment &merchant banking

Shareholding:MOFSL 75%

Motilal Oswal Financial Services Ltd

(MOFSL)

Incorporated on

May 18, 2005


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MOSl HISTORY AND MILESTONE

The story of MOSl goes back many years, when Mr. Motilal Oswal and Mr. Raamdeo

Agrawal met each other as students in a Mumbai suburban hostel in the early eighties. Both the

young chartered accountants hailing from a rural & an unpretentious background had a common

dream to build a professional organization with strong value systems, to provide reliable &

honest investment advice to investors. Thus was born their first enterprise called "Prudential

Portfolio Services" in 1987.

2009

Motilal Oswal Securities Ltd. enters 'Limca Book of Records' for creating India's largest

dealing room in Mumbai

MOSL was 'Rated No.1 Best recommendations Mid & Small Caps' and won awards in

3 out of 4 categories at the Starmine India Broker Rankings 2009 from Thomson Reuters

2008

MOSL awarded the prestigious Nasscom - CNBC TV 18 IT User Award 2008

MOSL awarded 'The Best Franchisor in Financial Services' by Franchisee World

Magazine 2008 for the second consecutive year

MOSL creates one of India's largest Equity Dealing & Advisory rooms, spread over

26,000 sq ft in Malad, Mumbai

Motilal Oswal's India Business Excellence Fund raised USD 125 million, 25% higher

than the initial target of USD 100 million

D & B survey rates MOSL as India's top Broking House in terms of total number of

trading terminals. MOSL alliance with IDBI Bank to offer Online Trading Services


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AsiaMoney Brokers poll 2007 rates Motilal Oswal Securities Ltd. - Best Overall Country

Research - Local Brokerage

2007

The Strategic partnership between MOSL and SBI - EZtrade - reaches an important

milestone i.e. In less than a year it has managed to sign up more than 10,000 customers

Starts Knowledge First campaign

Motilal Oswal was perceived as the most Research driven stock trading player - Starcom

Mediavest Survey

Introduces a separate brand for Private Client Group Purple

Motilal Oswal Commodities Broker Pvt Ltd (MOCBPL) bagges Globoil India's

prestigious 'Outstanding Commodity Broking House 2007' Award

Motilal Oswal Financial Services ltd. gets listed on the BSE & NSE

Mr. Motilal Oswal - Chairman and Managing Director has been appointed as a member

of the Managing Committee of Indian Merchant Chambers.

Motilal Oswal Financial Services Ltd files RHP with SEBI for an IPO

Motilal Oswal Financial Services Ltd. features as a case study in Harvard Business

School

Motilal Oswal Financial Services Ltd ties up with Punjab National Bank to offer online

trading to its customers

2006

Motilal Oswal Financial Services Ltd ties-up with State Bank of India to offer onlinetrading.

Motilal Oswal Financial Services Ltd was declared as the Best Research House for

Indian Stocks in 2006 as per AQ Research.


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AsiaMoney Brokers poll 2006 rates Motilal Oswal Securities Most Independent

Research- Local Brokerage

Introduces unique 1 paisa trading scheme for online Derivatives trading

Launches the India Business Excellence Fund (IBEF), a US$ 100 mn India focusedPrivate Equity Fund.

Investment banking business advises Aban in their majority controlling stake of Sinvest

ASA one of the largest investment banking deals of 2006.

Places 9.48% with two leading private equity investors - New Vernon Private Equity

Limited and Bessemer Venture Partners.

Issues about 13% of companys equity to employees as ESOPs.

Acquires a leading south Indian brokerage firm - Peninsular Capital Markets. Also

acquires 1 more brokerage firms in UP.

Enters Private Equity and Investment Banking businesses.

Value PMS gives 390% returns to its investors between Feb 2003 and March 2006.

Another milestone in distribution 1160 Business locations, over 360 cities, serving over

200,000 customers.

Employee base crosses 2000 and Business Associate base crosses 780.

2005

AsiaMoney Brokers Poll 2005 rates Motilal Oswal Securities - Best Local Brokerage,

Most Independent Research Brokerage, Best in Sales and Service.

Launches two new Portfolio Management Schemes - Value Hedging for derivatives and

Discover Value for the Rs. 5 lakh to Rs. 50 lakh category.

Acquires Capital Deal Stock and Share Brokers, (a proprietary concern based in

Karnataka).

Deepest distribution in the stock broking segment with about 700 Business locations in

296 cities and about 1, 50,000 customers.


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2004

Value PMS delivers a whopping 160% post tax returns for the period ended April 2004.

Bulls Eye PMS - A momentum based PMS launched.

Start of the Solid Research Solid Advice campaign.

2003

Enters the mutual fund and IPO distribution business.

MOSt Portfolio Management Services launched with Mr. Raamdeo Agrawal as the

Portfolio Manager. Uniquely structured performance related fees.

Inquire team is successful in capturing the uptrend in Banking, Auto and Infrastructure

sectors.

Crossed 15,000 Depository accounts.

About 200 Business locations in 124 cities servicing over 15,000 Retail and Institutional

Investors.

2002

MOSt consolidates its retail operations & upgrades its IT / Back Office infrastructure tocater to its growing network of business locations.

Received the AsiaMoney Award - 2nd best among Indian Brokerage firms.

Retail network completes coverage of 75 cities in India.

Direct servicing of HNI clients is initiated. Crosses 10,000 Depository accounts.

1999

Mr. Raamdeo Agrawal starts attending legendary billionaire investor Warren Buffetts

Annual General Meetings of Berkshire Hathway Inc. He still continues to attend it every

year.

The Wealth Creation Study started in 1996 culminates into Wealth Creation Seminar and

Awards function in 1998.


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First Stock Broking house to brand its services as a research and advice based broker.

Wealth Creation Campaign started.

www.MotilalOswal.com launched. First broking house in India to go on the web.

Becomes a Depository Participant of National Securities Depository Limited (NSDL).

Inducts Mr. Ivan Mathias, former country head of Watson Wyatt Worldwide, on itsBoard

to Directors to shape HR initiatives.

1998

Mr. Motilal Oswal joins the Governing Board of The Stock Exchange, Mumbai.

1995-96

Motilal Oswal gets incorporated as Motilal Oswal Securities Ltd.

Wealth Creation Study started. First of its kind study initiated to identify biggest and

fastest wealth creating companies in Indian Stock markets.

1994

MOSt acquires NSE Membership and plans for major expansion of its retail network.

Inquire (Indian Equity Research) is formally created at a 2500 sq. ft office in South

Mumbai with bigger and better quality infrastructure than the corporate office. Since then

nearly 20% of revenue is allocated to research. First Domestic Stock broking house to

have such a strong Research focus. Motilal Oswal enters Institutional Broking

business.

1990


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After just three years in the business, Motilal Oswal is formed through acquisition of

membership on The Bombay Stock Exchange (BSE). Three more memberships taken in

later years.

1987

Mr. Motilal Oswal and Mr. Raamdeo Agrawal lay the foundation of a great partnership

by starting a sub-broking firm. The venture stands out from the rest due to their approach

of Research-based broking even when sub-brokers

.


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END TO END EQUITY SOLUTIONS


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S ERVICES PROVIDED BY MOSL


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MOSL is providing different kind of services under its Broking and

Distribution Services to its clients. They are as follows.

Advised based Broking on BSE / NSE ( Cash & Derivatives )

Portfolio Management Services ( PMS )

Internet Trading ( E Broking )

Timely & Researched based Investment and Trading Ideas

Depository Services ( MODES )

Advised based Mutual Fund

Commodities

IPO

Advise based broking:

Motilal Oswal Securities Ltd. providing advice based equity trading to its clients.

MOSL is providing NSE, BSE and F & O trading facility to its customers. It provides

mainly broking premier Brokerage Service based on fundamental research. Derivatives

(Futures & Options) are ideal instruments to protect your portfolio against risk. You can

trade with index movements, hedge and leverage your portfolio by limiting risk but

keeping your upside unlimited.

Its research based advice is very successful in market. They use Orian software

for trading, and get connectivity through V-sat facility. They are used Bharti

Televentures V-sat connection. MOSL have NSE, BSE registration.


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Depositary Services:

In the times of T+2 having a demat account linked to your trading account

becomes really convenient. The non-trading members also can avail of their Depository

services. You receive regular account reports and an efficientservice at all times. MOSt

is a member of both NSDL and CDSL and theservice is available at all over outlets in

India.

Account Opening

Dematerialization

Re-materialization

Account Transfer

Transmission

Nomination

Pledging And Hypothecation

Account Closures

MOSl E-Broking:

There is nothing more exhilarating, more daring and more rewarding than making

the right trade at the right time. MOSl provides you E-Broking Platform which brings

you a world class experience of online investing. Buying and selling of shares is now just

a click away. A multitude of resources like live quotes, charts, research, advice, and

online assistance helps you take informed decisions. Their robust risk management


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system and 128 bit encryption gives you a complete security about money, shares, and

transaction documents.

MOSl Portfolio Management Service:

Motilal Oswal Securities ltd offers 4 type of PMS schemes meant for investors

with different investment preferences as of June 30th, 2009.

Value Strategy PMS scheme is meant for investors with long-term interest in themarket.

Bulls Eye Strategy PMS scheme is meant for investors who want to take

moderate risk and generate healthy returns from the equity market from time to

time.

Trillion Dollar Opportunity Strategy PMS Scheme is create wealth forinvestors, by investing in focused themes which are part of the next Trillion

Dollar GDP growth opportunity.

Focused Strategy Series 1 PMS Scheme is create wealth for investor by

investing in stocks that can benefit from growth in earning and a higher P/E or

Higher valuation of assets

Its clients, investor community and some of the most prestigious publications

like Asia money and Institutional Investors amongst others acknowledge Motilal

Oswal Securities as one of the leading research based equity broking house in India.

With about 15% of their revenue invested in their research capability, they have some

of the sharpest resources that produce excellent research insights on companies. The


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same is then passed to their highly rated portfolio management and investment

advisory team that works on its personalized investment strategy.

MOSl Commodities:

Investors looking for a fast-paced dynamic market with excellent liquidity can

now trade in Commodity Futures Market. The Commodity Exchange isa Public Market

forum and anyone can play in these vital Commodity Markets. Motilal Oswal

Commodities Broker (P) Ltd can certainly be a point of entry to the Commodity Markets

for any person. MOCB is a registered trading cum-clearing member of NCDEX.Participation is not difficult. All you needis to open an account with them. MOCB shall

offer you advice on investments& strategy, provide research and contact you regularly

with trading advice.

MOSl Mutual Advise based broking:

To enable clients diversify their investments Motilal Oswal Securities Limitedhas added another product in its bouquet and will now offermutual funds.

MOSl mutual team is in close contact with various fund houses and interactive

sessions are held with fund managers. They will provide you regular updates on products

and new schemes. Being one of the stock brokers they keep a close watch on the markets.

Based on your risk appetite, investment horizon and your existing investments they will

suggest investment in mutual fund schemes, which are best, suited to you. The fund and

scheme selection is done after an in-depth research on parameters like risk adjusted

returns, rolling returns, volatility and portfolio churn. They advise a mature and long-

term view on mutual fund investments.


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MOSt Mutual doesnt stop at just that, they go a step further to ensure that you

get the right NAV, your dividends are credited on time and your account statements are

regularly received. You will also receive their monthly newsletter on Mutual Funds

"MOSt Mutual".


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INTRODUCTION TO PORTFOLIO

MANAGEMENT SERVICE

What is PMS?

The full Name of PMS is Portfolio Management Service. Portfolio Management

Service (PMS) is a product wherein a customized investment portfolio is created to suit the

investment objectives of a client. In PMS, the portfolio manager handles the responsibility of

creating and tracking the portfolio. Idea identification, order execution, settlement and

performance reporting is all assumed by the PMS provider. PMS is for an investor who

doesnt have the time and expertise to manage his portfolio. The client derives the benefit of

the professional and experience of the Portfolio Manager

Why PMS?

Investors Dilemma

I have the money & desire to make money

Now I know or I already knew equity is a good instrument for creating wealth but

My Busy Schedule does not allow me to have time to study and identify the right

stocks or

Sometimes, I have tried my luck in the stock market and realized that through Iunderstand the market to some extend but is not enough to keep coming with winning

investment.


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DIFFERENT KIND OF PMS

There are three kinds of PMS provided by Motilal Oswal Securities Ltd. They are as

followed

Value Strategy PMS

Bulls Eye Strategy PMS

Trillion Dollar Opportunity Strategy PMS

Focused Strategy Series 1 PMS

These all PMS have their different features. They all are descriptive as under.


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VALUE PMS

Value PMS is a scheme meant for investors with a Long Term investment horizon in the

Indian Equity Markets the money management team is headed by Mr. Raamdeo Agrawal, the

founder-director of Motilal Oswal Securities Ltd., and a very well respected investor among the

Indian Investor Community. Mr. Agrawal believes in low portfolio churn and a high margin of

safety investment philosophy for long term and sustainable wealth creation. The Value PMS

has been running successfully since February 2003, with clients not only in India, but across the

globe.

Motilal Oswal (MOSl) has a highly satisfied client base both on the Institutional side as

well as on the retail side of High Net worth Individuals and Franchisees. This has been possible

because of a strong equity research team (Inquire) completely focused on identifying wealth

creating companies. At Inquire, we very clearly understand the difference between value and

price. Our teams of Analysts follow a thorough research process. This process involves

understanding the business dynamics through a continuous interaction with company

managements, suppliers and competitors. In fact, it is this dedication and processes that havewon us international acclaim like Asia Money 2000 Brokers Poll award.

MOSls own portfolio, handled by Ramdeo Agrawal has delivered a return of 30% p.a.

compounded over the last five years on a substantial size. It is this success that makes us

confident of handling funds management for external clients.

MOSLs primary objective is preservation of capital and prevention of any significant

permanent capital loss. The whole stock selection process is geared to find investment ideas with

a sufficient margin of safety, so that even a mediocre sale will fetch good returns. This approach

can be termed as conservative.


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They expect that the stock market will give a return of 15% p.a. for the next three to five

years. Their goal will be to do better than this. However, there is no guarantee of positive

returns.

For hassle free custody, banking and settlements MOSL has its own depository service

Motilal Oswal Depository Services. Their own depository will act as your custodian for a

nominal custody fee. MOSLs in house depository will facilitate MOSL as acting as custodians

and present you a completely hassle free custody. They will handle your Banking (in a special

bank account under POA from you) and trade. Settlement will be done by their trained personnel

who will ensure that all administrative matters are expeditiously handled and reconciled.

Alternatively, you may choose an external custodian with whom we will liaise on your behalf.

Thus you will only have to monitor the portfolio performance through periodic reports

from the company side. All administrative matters will be off your shoulders.

You can expect the following from MOSL

Monthly Portfolio Statements including Portfolio Performance Report.

Monthly Transaction Statements, Bank and DP Statements.

Quarterly meetings with Mr. Ramdeo Agrawal your portfolio manager Reports on tax

status of the portfolio before the advance tax due dates.

How it is different from Mutual Fund?

MOSl PMS offers you a unique combination of equity expertise and personalized

service. Your portfolio will be constructed to meet your investment goals at a given level of

risk.


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They have a stated objective to keep the churn very low. It is a little known fact that

high turnover takes away a major part of investment returns. You can monitor the portfolio

turnover. These aspects would not be available to you in a mutual fund. Importantly,

MOSLs fee is significantly lower than the basic management fee levied by a mutual fund

(pre- performance management fee).

Reason of Performance Fee:

The base asset management fee being charged is much lower than that charged by

others, and that is to cover their running costs. They have consciously kept MOSL fee more

performance linked, as they strongly believe that it will align the interests of the firm and the

client.

You should not be burdened when the portfolio performance is not positive.

Who can Sign Up?

The following categories are eligible as per SEBIs rules.

Individuals

HUFs

Companies

N.R.I.


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For Whom

Portfolio Management Service (PMS) is meant for investor with long-term time

horizon. Low portfolio churn and capital preservation will be key to success. Our investmentdecision will cushion in high .margin of safety. So that it leaves sufficient room for investor

to be invested and nurture his portfolio. PMS is a product where in a customized investment

portfolio is created to suit the investment objectives of a client. In PMS, the responsibility of

creating and tracking the portfolio is handled by the portfolio manager. Idea generation,

order execution, settlement and performance reporting is all assumed by the PMS provider.

This service is particularly advisable for investors who cannot afford to give time or dont

have those expertises for day-to-day management of their equity portfolio. They would

prefer Mr. Raamdeo Agarwal, Portfolio Manager, to manage the same. The client derives the

benefit of the professional expertise and experience of Mr. Raamdeo Agarwal.


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FEATURES OF VALUE PMS

Scheme :

Minimum Portfolio Size: Rs. 25 Lakhs cash or approved securities per

individual or group.

Fee Structure :

Nature of Fees Option 1 Option 2 Liquid Strategy

One time upfront Fee 0.50% 0.50% Nil

Fixed Management Fees

Assets Under Management Per Annum Per Annum Per Annum

>25 Lakhs 2.75% 1.50%

Rs 600p.a.Rs 25 Lakhs To Rs100 Lakhs 2.50% 1.00%

100 Lakhs and above 2.25% 0.75%Performance Based

Management Fees

Nil 10% Profit Sharing on

Higher Water Marking Basis

Nil

Exit Load

Exit Between 0-12 months 2.00% 2.00% 2.00%

Exit after 12 months Nil Nil Nil

Custodian Fees 0.25% 0.02%

Brokerage The Portfolio manager will have discretion to appoint any

brokers to execute the transaction for Portfolio management

scheme. Brokerage Rate will be as applicable.

Depositary Charge As Applicable

Registrar and Transfer Fees Nil


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Service Tax, Security

Transaction Tax and other

Statutory Levels

As Applicable

Broker: Motilal Oswal Securities Ltd. would be appointed as a broker. Broking as

applicable to broking segment clients.

Withdrawals: All withdrawals would be with the mutual consent of the client and the

fund manager. The withdrawals may be in form of shares or in cash at the end of the

agreed period.


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BULLS EYE PMS

Bulls Eye is the second product under the AMC. It is a short to medium term investment

product, for which there is a substantial appetite. Hence, Bulls Eye is launched to fill in this

Gap.

It is to invest in stocks with a time frame of 1-6 months, for a minimum 15- 20% move.

Majority of the corpus, with higher weight age per stock, will be invested in MOST researched

ideas both large cap & mid cap. Technical would be used to TIME the fundamental ideas, and

also to pick momentum based ideas where there is no in-depth fundamental coverage. A lower

weight will be assigned to stocks where we may not have in-house coverage, so as to participate

and capture sharp rallies. The whole idea is to minimize the risk by timing the stock selection.

Though the minimum signing amount is Rs. 50 Lakhs, we give flexibility to the investor

to join at Rs. 25 Lakhs & then scale up based on his comfort & overall performance.

Investors who not only want steady returns irrespective of market volatility, but also

would like to take advantage of short to medium term rallies. Those who have knowledge of the

stock market but lack the discipline to book profits when the going is good or sit on cash

when market looks overheated and cannot track when the stock has run ahead of its

fundamentals in the short term are the ideal investors who should invest in Bulls Eye.

Booking profits regularly and ability to sit on cash are the key salient features of Bulls

Eye PMS. Idle cash will be invested in liquid mutual funds for the short term.

The scheme aims to deliver 15-20% returns in Volatile Markets, especially when there is

no one-sided trend. In a trended bull market, returns can be substantially better.


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For Whom

The mind of a successful and a busy investor

There is so much action in the markets nowadays. I love the action and whatever

everybody may say; Stock Market is one place where you can outdo all other investment

instruments. All one needs is in-depth understanding of the markets and the company one

invests in right entry levels and profitable exit points. Unfortunately, all this requires time to

study, which my busy schedule doesnt allow. There have been so many times when I felt

like encasings my large unrealized gains but got swayed by my Greed.

Can I get a good portfolio manager who can take my funds and invest them

intelligently in equities? Someone, who invests my money in fundamentally strong

companies, take advantage of volatile markets and book profits regularly keeping market

conditions in mind."

Its time you hit the Bulls Eye with Motilal Oswal Securities Limited.


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Bulls Eye strategy to better returns . . .

Here is the investment strategy we employ to generate desired returns through our

Bulls Eye PMS scheme. We believe Investing = Hunting. Its about identifying the right

stocks, picking and exiting at the right times and then continuing the cycle. Identifying the

right stocks: Our strong proven Fundamental Analysis skill allows us to understand the

profile and the performance of various companies. This allows us to pick the wheat from the

chaff.

Determining Entry and Exit Points:

After identifying the companies forinvestment, we resort to technical analysis, read

the market conditionand pick up the stocks in opportune sectors. We believe that apart from

the right entry levels, selling at the right time is equally important. Therefore, we employ

similar strategy while exiting the stock and this completes our hunt for good returns.

Moderate risk is the key philosophy: We take moderate risk while making any investment.

Duration of the investment is one to six months. So even while a stock may look

fundamentally strong, the age of our investment in it may depend on the reality based on

technical research along withthe prevailing market conditions (markets are overheated, over

expectations build-up etc).

Our, now famous, Wealth Creation Studies have proved that there arent even 100

companies out of the 6000 listed on exchanges that create wealth for its investors during the

five year periods. So the task of picking the right stocks is more difficult than most of us can

imagine.


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FEATURES OF BULL S EYE PMS

Scheme :

Minimum Portfolio Size: Rs. 25 Lakhs cash or approved securities per individual or

group.

Fee Structure:





>25 Lakhs 2.75% 1.50%

Rs 600p.a.Rs 25 Lakhs To Rs100 Lakhs 2.50% 1.00%

100 Lakhs and above 2.25% 0.75%

Performance Based

Management Fees



Nil

Exit Load




Brokerage

The Portfolio manager will have discretion to appoint any







Statutory Levels

As Applicable


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Withdrawals: All withdrawals would be with the mutual consent of the client and thefund manager. The withdrawals may be in form of shares or in cash at the end of the

agreed period.


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THE FOCUSED STRATEGY SERIES - I PMS

The Focused Strategy Series I has been is designed to invest in stocks that can that can

benefit from growth in earnings and a higher P/E or higher valuation of assets. The strategy aims

to identify investment opportunities which exhibit a re-rating potential over a 2 year period.

The strategy follows a concentrated portfolio approach, by limiting the number of stocks

in the portfolio to 7. The underlying principle is to pick the best ideas rather than diversification.

The portfolio will aim to invest in fundamentally sound companies that can benefit from

a re-rating. To increase the prospects for out performance, the portfolio will exhibit a preference

for companies that may have been overlooked or are out of favour.

The portfolio follows a bottom-up stock selection approach with an investment horizon

of 2 years. The aim is to identify best candidates for a re-rating potential. The underlying

philosophy of the portfolio is to Buy and Hold until the stocks realize their re-rating potential.

The portfolio aims identify companies which exhibit the following

Characteristics:

Companies whose earnings are likely to do better than market consensus.

Companies benefiting from internal fundamental changes

New management team or new product launch

Cost-cutting initiatives or improved pricing

Merger or acquisition

Companies benefiting from changes in business environment

Consolidation or reduction in industry capacity leading to improved pricing


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Shift in consumption patterns or demographic trends

Out of favor companies fundamentally sound companies that have underperformed for

temporary reasons

Companies with lower valuation as compared to sector or peers or market

Portfolio Characteristic:

Bottom-up stock selection

Investment in stocks with re-rating potential

Out of Favour Stocks

Concentrated portfolio

Investment horizon: long term (two years)

Risk: high

Performance Fee will be Charged at end of 2 years

Buy and hold philosophy low portfolio churn


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Reports provided to investors.

Motilal Oswal Securities provides the following reports to the investors to keep them

appraised with their portfolio performance.

Monthly transaction statements.

Monthly portfolio statement specifying portfolio of the investor and gain and loss.

Yearly portfolio statement certified by a CA.

Who can Sign in?

Investors from the following categories are eligible to participate in .Discover value.

Individuals

Proprietorship firms

HUFs

Partnership firms

Registered societies

Registered trusts

Corporate


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FEATURES OF THE FOCUSED STRATEGY

SERIES - I PMS

Scheme :



Fee Structure :





>25 Lakhs 2.75% 1.50%

Rs 600p.a.Rs 25 Lakhs To Rs100 Lakhs 2.50% 1.00%100 Lakhs and above 2.25% 0.75%

Performance Based

Management Fees



Nil

Exit Load










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Statutory Levels

As Applicable





agreed period.

.


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TRILLION DOLLAR OPPORTUNITY

STRATEGY PMS

The portfolio is designed to invest in themes /stocks in the small and mid cap segment

which are going to be a part the NEXT TRILLION DOLLAR GDP GROWTH. The Portfolio

would target to invest in Small & Mid Cap Opportunities which have the potential of delivering

above-average growth over the next 2-3 years

The investment philosophy is to invest in stocks which are available at reasonable

valuations and promise more than average growth. The portfolio would aim to identify emerging

themes. The Portfolio would attempt to identify emerging themes early and exit when these

when they are fairly discounted.

We firmly believes that markets rewards consistent growth over a period of time and

only after critical size has been achieved by the company. For any stock to get recognized by the

Market and get a desired Valuation one has to wait for the right Trigger Point. Perception Re-rating happens due to:

Increased Sales volume

Consistent Growth

Better Margins

Growing stakeholders confidence

The Product aims to deliver superior returns by investing in Small & Mid cap ideas that

are part of the next Trillion Dollar GDP growth opportunity.


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Portfolio Characteristic:

Investments in Small and Mid-cap Stocks

Bottom Up Stock Picking Approach

Focused Theme Portfolio

Investment Horizon - Long term (2 to 3 Yrs)

Benchmark: - CNX Mid Cap

Buy and Hold Philosophy low portfolio churn

Open Ended Portfolio with Exit Fee

Quarterly Disclosure Of Portfolio

Investment Philosophy and Strategy

High Growth Story: Sector and Companies which promise a higher than average growth.

Reasonable Valuation: Invest in high growth companies at reasonable price / value

Emerging Themes: Focus on Identifying Emerging Stocks / Sectors

Buy & Hold Strategy: The Portfolio shall focus on above philosophies and hold them till

it realizes it true market potential.

Wealth is created by sitting.

Reports provided to investors.

Motilal Oswal Securities provides the following reports to the investors to keep them

appraised with their portfolio performance.

Monthly transaction statements. Monthly portfolio statement specifying portfolio of the investor and gain and loss.

Yearly portfolio statement certified by a CA.


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Who can Sign in?

Investors from the following categories are eligible to participate in .Discover value.

Individuals

Proprietorship firms

HUFs

Partnership firms

Registered societies

Registered trusts

Corporate


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FEATURES OF TRILLION DOLLAR

OPPORTUNITY STRATEGY PMS

Scheme :



Fee Structure :





>25 Lakhs 2.75% 1.50%

Rs 600p.a.Rs 25 Lakhs To Rs100 Lakhs 2.50% 1.00%100 Lakhs and above 2.25% 0.75%

Performance Based

Management Fees



Nil

Exit Load










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Statutory Levels

As Applicable





agreed period.


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RISK FACTOR

The investment made in the securities are subject to market risk and there is no assurance

of guarantee that the value of or return on the investment made will always appreciate, it could

depreciate to an unpredictable extent.

Following are the risk factors as perceived by management:

Investment in equities, derivatives and mutual funds are subject to market risks and thereis no assurance or guarantee that the objective of the scheme will be achieved.

As with any investment in securities, NAV of the portfolio can go up or down depending

upon the factors and forces affecting the capital markets. The performance of the

schemes may be affected by changes in government policies, general levels of interest

rates and risk associated with trading volumes, liquidity and settlement system in equity

and debt market.

The past performance of the portfolio manager does not indicate the future performance

of the same Scheme in future or any guaranteed returns through these schemes.

The names of the schemes do not in any manner indicate their prospect or returns. The

performance in the equity scheme may be adversely affected by the performance of

individual companies, changes in the market place and industry specific and macro

economic factors.


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another party (usually referred to as the .counter party.) to comply with the terms of the

derivatives contract. Other risks in using derivatives include the risk of miss pricing of

improper valuation of derivatives and the inability 9of derivatives to correlate perfectly

with underlying assets, rates and indices. Thus, derivatives are highly leveraged

instruments. Even as small price movement in the underlying security could have a large

impact on their value. Also, the market of derivative instruments is an ascent in India.


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NATURE OF EXPENSES

Investment Management & Advisory Fees:

Management and Advisory fees charged may be a fixed fee or a return based fee or a

combination of both as detailed in the annexure to the portfolio management services

agreement.

Custody Fees: NIL

Registrar & Transfer Agent Fees: NIL

Brokerage & Transaction cost:

The investment under the portfolio management scheme would be done thoughregistered members of stock exchange who charge brokerage up to maximum of 2.5% of

contract value. In addition to the brokerage, transaction cost like network charges, turnover

charges, stamp duty, transaction costs, turnover tax, securities transaction tax of any other tax

levied by statutory authority, foreign transaction charges (if any) and other charges on the

purchase and sale of shares, stocks, bonds, debts, deposits. Other financial instruments would

also be levied by the broker (including Motilal Oswal securities ltd.) Any entry or exit loads

(if any) on units of Mutual Funds will also be charged from clients.

Service Tax: As applicable from time to time.


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Certification and professional charges:

Charges payable for out sourced professional services like accounting, auditing,

taxation and legal services etc for documentation, certifications, attestations required by

bankers or regulatory authorities including legal fees etc.

Incidental expenses:

Charges in connection with day to day operation like courier expenses, stamp duty,

service tax, postal, telegraphic, opening and operation of bank account or any other out of

pocket expenses an may be incurred by the portfolio manager.


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ACCOUNTING POLICIES

The following accounting policies will be applied for the investments of the clients:

Investment in Equities, Mutual funds and Debt instruments will be valued at closing market

prices of the exchanges (BSE or NSE as the case may be) or the Repurchase Net asset Value

declared for the relevant scheme on the date of the report of any cut off date or the market

value of the debt instrument at its cut off date. Alternatively, the last available prices on the

exchange or the most recent NAV will be reckoned.

Realize gains/losses will be calculated by applying the first in /first out and / or weighted

average principle. The portfolio manager and the client can adopt any specific norms or

methodology for valuation of investment or accounting the same as may be mutually agreed

between them on a case specific basis.

For derivatives and futures and options, unrealized gains and losses will be calculated by

marking to market the open positions.

Unrealized gains / losses are the differences in between the current market values/NAV and

the historical cost of the securities.

Dividends on shares and units in mutual funds, interest etc. shall be accounted on receipt

basis. The interest on debt instrument shall be accounted on accrual basis.


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INTRODUCTION

There are different types of analysis which are used for selecting Portfolio. They are as

followed

Technical Analysis

Fundamental Analysis


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TECHNICAL ANALYSIS

Introduction

The methods used to analyze and predict the performance of a companys stock fall

into two broad categories: fundamental and technical analysis. Those who use technical

analysis look for peaks, bottoms, trends, patterns and other factors affecting a stocks price

movement and then make buy/sell decisions based on those factors. It is a technique many

people attempt, but few are truly successful at it. The world of technical analysis is huge

today. There are literally hundreds of different patterns and indicators that investors claim to

have success with. We have tried to keep this tutorial as short as possible. Our goal is to

introduce you to the different types of stock charts and the various technical analysis tools

available to investors.

What Is It?

Technical analysis is a method of evaluating securities by analyzing statistics

generated by market activity, past prices and volume. Technical analysts do not attempt to

measure a securitys intrinsic value; instead they look at stock charts for patterns and

indicators that will determine a stocks future performance. Technical analysis has become

increasingly popular over the past several years, as more and more people believe that the

historical performance of a stock is a strong indication of future performance. The use of past

performance should come as no surprise. People using fundamental analysis have always

looked at the past performance of companies by comparing fiscal data from previous quartersand years to determine future growth. The difference lies in the technical analysts belief that

securities move according to very predictable trends and patterns. These trends continue until

something happens to change the trend, and until this change occurs, price levels are

predictable. There are many instances of investors successfully trading a security using only

their knowledge of the securitys chart, without even understanding what the company does.


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However, although technical analysis is a terrific tool, most agree it is much more effective

when used in combination with fundamental analysis.

Here are some points to remember about technical analysis:

Technical analysis is a method of evaluating securities by analyzing statistics

generated by market activity, past prices and volume.

The advantage of using a bar chart over a straight line graph is that it shows the high,low, open and close for each particular day.

One of the most basic and easy to use technical analysis indicators is the moving

average, which shows the average value of a securitys price over a period of time.

The most commonly used moving averages are 20, 30, 50, 100 and 200 - day.

Support and resistance levels are price levels at which movement should stop andreverse direction. Think of support/resistance (S/R) as levels that act as a floor or a

ceiling to future price movements.

There are literally hundreds of different price patterns and indicators out there.

Technical analysis is a terrific tool, but it is much more effective when combined

with fundamental analysis.


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FUNDAMENTAL ANALYSIS

Introduction

The massive amount of numbers in a companys financial statement can be

bewildering and intimidating to many investors. On the other hand, if you know how to read

them, the financial statements are a gold mine of information. Financial statement analysis is

the biggest part of fundamental analysis. Also known as quantitative analysis, it involves

looking at historical performance data to estimate the future performance of stocks.

Followers of quantitative analysis want as much data as they can find on revenue, expenses,

assets, liabilities and all the other financial aspects of a company. Fundamental analysts look

at this information to gain insight on a companys future performance. This doesnt mean

that they ignore the companys stock price; they just avoid focusing on it exclusively. In this

tutorial, well show you how to understand the basics of the financial statements (both

quarterly and annual reports), and give you the tools you need to decide which companies

make worthwhile investments. One of the most important areas for any investor to look at

when researching a company is the financial statements. It is essential to understand the

purpose of each part of these statements and how to interpret them.

Financial reports are required by law and are published both quarterly and annually.

Management discussion give investors a better understanding of what the company does

and usually points out some key areas where they did well.

Audited financial reports have much more credibility than un-audited ones.

The balance sheet lists the assets, liabilities, and shareholders equity.


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For all balance sheets: Assets = Liabilities + Equity. These two sides must always equal

each other (balance).

The income statement includes figures such as revenue, expenses, earnings and earningsper share.

For a company, the top line is the revenue while the bottom line is net income.

The income statement takes into account some non-cash items such as depreciation.

The cash flow statement strips away all non-cash items and tells you how much actual

money the company generated.

The cash flow statement is divided into three parts: cash from operations, financing and

investing.

Always read the notes to the financial statements. They provide more in-depth

information on a wide range of figures reported in the three financial statements.


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WEALTH CREATION STUDY

Wealth Creation Study is created by Ramdeo Agrawal. Every Year he organize a wealth

creation Award. The Annual Wealth Creation Study and Awards aim to recognize and felicitate

the Biggest and Fastest wealth creators voted by the investors in the capital market. The

awards based on the wealth creation study identities the wealth creators over a five year period.

The period for the current study is 1999 - 2004. Over the years the awards have become an

integral part of the capital market and are keenly awaited event amongst the institutional and

retail investors and managements of corporate India.

MOSt conducts Wealth Creation Seminars across the country regularly to educate

individual investors about our research products, derivatives market, investment strategies and

latest opportunities in the stock markets. Our senior executives, research analysts and investment

strategists address the audience and personally interact with the investors.


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PRIMARY DATA RESEARCH

Objectives of The Research

STUDY ON PORTFOLIO MANAGEMENT SERVICES

STRATEGIES AND INVESTORS AWARENESS AND PREFRENCE

FOR IT

Research Methodology

Research methodology is the scientific and general method through which the

research objective is conducted. The business research methodology includes the sample

size, nature of the study, data collection method, data source, research instruments, sampling

plans etc.

Type Of Data

There are mainly two types of data primary data and Secondary data.i have used

both.

Data Source

As I am using here the primary data for research, respondents are the main source for

getting information and secondary data collected from various past surveys, internet and

journals.

Data Collection

For data collection I had used the questionnaire

Sampling Plan

Target Population : People of Ahmedabad City

Sample Size : 100 Samples

Sampling Method : Convenience Sampling


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1) Do You Invest in Stock Market ?

Invest In Stock Market

Particulars %Invest 80%

Not Invest 20%

Invest In Stock Market

80%

20%

Invest Not Invest

In my survey I found that most of people up to 80% in Ahmedabad city invest in stock

market. Only 20% people dont invest in stock market. This shows that the market ofAhmedabad city is very potential;


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2) Out of the following investment options, where do you prefer to invest your savings rate

on the scale of 1 to 5? (5 being the most important factor) ?

MF Equity Debt Bank PMS Govt. Bonds Commodity Insurance Post

64 160 14 164 14 26 20 100 38

Here I found that mostly people fund their investment in safe side, so that they invest in bank

and insurance. They are supposed that equity market is some what risky market and it is

gambling. But it also gives very good return. Currently market is going in bull side, so that they

prefer equity as a good investment instrument.


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Investment Period

77%

23%

Short Term Long Term

3) For How Much Period Do You Want To Invest In Stock Market?

Investment Period

Long Term 77Short Term 23

In my survey I found that maximum of the respondents invest for the long term (77%)

while only 23% invest for the short period of time.


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4) If you invest in Equity, on what basis do you select a particular script ?

Tips Friends Company

Research

Annual

Report

Own

Research

Corporate

News24 38 10 5 15 9

INFLUNCE

In my market survey I found that maximum number of respondents investing influenced

by friends (38%), than they invest by tips (24%) and than by own research (15%), Company

Research (10%), corporate news and annual report 9% and 5% respectively.


81/104

5) Do You Aware Of Portfolio Management Service ?

PMS Awareness

Aware 40

Not Aware 60

PMS AWARENESS

As per my survey I found that 40% of the respondents are aware about PMS, while 60%

respondents do not aware about PMS


82/104

6) Are You a User Of Portfolio Management Service ?

PMS User

Yes 15No 25

PMS USER

As per my survey I found that 60 percent people are aware about PMS but only 15

person out of 100 are user of PMS who invest in different PMS schemes


83/104

7) In Which Kind Of PMS Do You Invest ?

Investment Limit

50 Lakh 25 Lakh 5 Lakh26.66% 26.66% 46.66%

As per my survey I found that among the PMS users 46% invest in 5 Lakh plan, while

26% invest in 25 lakh & 50 lakh plan each.


84/104

8) How Much Return Do You Expect From PMS Investment ?

Can't say 10-20 20-30 30-40 40-50 50-60 60-70 >70

56 0 38 76 30 0 0 0

Expected Return In %

020406080

Can't

say

10-20 20-30 30-40 40-50 50-60 60-70 >70

% Return

As per my research I found that 38% of the respondents expect that PMS can give 30-

40% return, while 15% people expect 40-50% return. 28% of respondents cant say anything

about the return from PMS.


85/104

9) Do You Agree That PMS Is a Right Way Of Investment ?

Strongly

Agree

Agree Nuetral Dis-agree Strongly

Dis-agree22 32 36 9 1

PMS- Right Way To Invest

Strongly

Agree

22%

Agree

32%

Nuetral

36%

Dis-agree

9%

Strongly

Dis-agree

1%

As per my study I found that 22% of the respondents are strongly agree that PMS is a

right way of investment. While 32% are agree with the statement. Only 10% are disagreed with

the statement.


86/104

10) Which Problem Do You Face While Investing In PMS ?

Big

Amount

Return

Risk

Broker

Risk57 34 9

Problem While Investing in PMS

Big Amount

57%

Return Risk

34%

Broker Risk

9%

As per my market survey I found that most of the people face the problem of big amount

of investment in PMS. 34% respondents give the opinion that return risk is a problem while

investing in PMS, and very few are saying that brokers risk is a problem due to lack of research

& knowledge while investing in PMS.


87/104

11) Do You Know About Any Other PMS Provider ?

Knowledge About other PMS Providers

Yes 30

No 70

SSKI IL&FS Angle

Broking

R-

Money

SHCIL Patel

Security

India

Infoline

6 5 4 5 5 2 3

Knowledge Abt Other PMS Provider

Yes

30%

No

70%

As per my survey people also know about the other service provider accept MOSL which

are as above.


88/104

12) Monthly Income of Respondent

< 10000 10000-

15000

15000-

20000

20000-

25000

25000-

50000

> 50000

44 41 9 5 1 0

As per my survey result I found that among all my respondents 44 respondents are inincome class of


89/104

SWOT ANALYSIS


90/104

Strength:-

A large network is one of the most plus point of Motilal Oswal.

The leadership of the Motilal Oswal is also very good.

The Research Team of Motilal Oswal is very powerful. PMS is totally dependent on the

research work so it is very beneficial for the PMS.

The service provided to customers by Motilal Oswal is also good.

The companys total turnover is very high.

The return given to customers on their investment is high.

The company has well and experience dealers also.

The technology used by Motilal Oswal is very advanced.


91/104

Weakness:-

There is over staffing in company. So many times some of employee has no work and

this effects on their moral for work and wastage of time also.

The time management of company is not proper.

Lack of proper co-ordination between two departments of the company.

Opportunity:-

The Equity & Derivative market of Ahmedabad is very potential.

The company has huge database of HNI customers, so company can take benefit for its

services special for PMS

In Ahmedabad city there is only one branch of Motilal Oswal. Due to this reason the

investors of the other side of Ahmedabad can not take the more benefit of it. So company

can make its other branch at the other part of Ahmedabad also.

The growth of clients in company is constant.


92/104

The place where the company is situated is a very famous corporate place so it is

beneficial for the company.

Company arranges seminars regularly for the increasing awareness about the services and

its new products.

Threats

The company has to face a cut throat competition

Rules and regulation of government of India are also very tuff

The increment in new competitors of company with new technology is also very fast.


93/104


94/104

FINDINGS

Market is potential but only few people investors know about the PMS services.

The Company has no any expert person for the marketing of PMS

The companys Tips are highly demanded

People want to invest in PMS but they are afraid about broker risk and high amount of PMS.

HNI Clients agree with research based investment gives more return. And as they are long

term investor company should try to convert them in Portfolio investor.

20% people are not investing in stock market because they believe that it is gambling and

gambling is sin and it is highly risky.


95/104


96/104

SUGGESTIONS

The staff of Back office or dealers should meet their clients and try to find out their problemsand solve it.

The Company should take employee specialist for PMS.

The Company should make contact for PMS services with HNI customers.

The Company can create more awareness about PMS through seminars and personal

relationship.

Company should make literatures in Gujarati also. Most of people dont know good English.

Company should do more advertisement of PMS.

Follow up the customers on time.

The solution of customers complains should be done on time.


97/104

BIBLIOGRAPHY


98/104

Books

Security Analysis, 5th edition, Graham and Dodds, McGraw Hill International Editions,

Finance Series

Investment Analysis and Portfolio Management, M. Ranganatham & R. Madhumathi,

Person Education (Singapore) Private Ltd.

Marketing research, David Luck & Rolands Rubin ; 7th edition, PHI.

Websites

www.motilaloswal.com

www.bseindia.com

www.nseindia.com

www.e-investing.in


99/104

QUESTIONNAIRE

This survey is undertaken as a part of summer training for MBA program. Information provided

for the same will be used only for educational purpose and will not be disclosed anywhere else.

(1)Do you invest in your savings? (Tick any One)

Invest [ ] Not Invest [ ]

(2)Out of the following investment options, where do you prefer to invest your savings rate

on the scale of 1 to 5? (5 being the most important factor)

Mutual fund [ ] Equity [ ]

Debt [ ] Bank [ ]


100/104

PMS [ ] Govt. Bonds [ ]

Commodity [ ] Insurance [ ]

Post [ ] Other (pl. specify) [ ]

(3)For how long do you prefer to stay invested?

Long term [ ] Short term [ ]

(4) If you invest in Equity, on what basis do you select a particular script?

Tips [ ] Friends [ ]

Company Research [ ] Annual Report [ ]

Own research [ ] Corporate News [ ]

(5)Are you aware of Portfolio Management Services (PMS)?

Yes [ ] No [ ]


101/104

(6)Are you a user of PMS? (Tick any One)

Yes [ ] No [ ]

(7) How much money have you invested in PMS? (Tick any One)u in

Investment more than 50 lakhs [ ]



None of above [ ]


102/104

(8) How much return do you expect from PMS?

10%-20% [ ] 50%-60% [ ]

20%-30% [ ] 60%-70% [ ]30%-40% [ ] more than 70% [ ]

40%-50% [ ]

(9) Do you agree that PMS is a right way of investment? (Tick any One)

Strongly agree [ ]

Agree [ ]

Neutral [ ]

Disagree [ ]

Strongly disagree [ ]

(10) what problem do you face while investing in PMS? (Tick any One)

Big amount for investment [ ]

Return risk [ ]

Broker risk [ ]


103/104

(11) Do you know about any other PMS providers? (Tick any One)

Yes [ ] No [ ]

PERSONAL INFORMATION

Name :

Address :

Contact No :

Monthly Income (Rs.) :

Less then 10000 [ ] 10000 15000 [ ]

15000 20000 [ ] 20000 25000 [ ]

Date post:	03-Apr-2018
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