Description
Investment Potential for Customer
Master of Business Administration
Introduction to the topic :
The survey was conducted for the study of investment potential for Bonanza Portfolio Ltd. In this survey with the help of designed questionnaire, I have interviewed the entire prospect customer’s from IT & Other sector. The technique used for interacting prospect customer was the face-to-face interview.
Reason for selecting the topic:
Financial sector is growing sector. Bonanza Portfolio Ltd is the financial service provider company. They provide various investment schemes for customer so I choose this topic. In this topic how people invest there fund at present and in future how they invest if they need a help for how to invest then I suggested to meet the Bonanza Portfolio Ltd FSC (Financial Service Consultant).
1 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
Objective of the Study
? To study & analysis how Customer’s invest there fund and what is expected rate of return on there investment. ? To find out how people are save there tax. ? To find our consumer preference towards Bonanza Portfolio Ltd ? To study the investment potential in Latur sector. ? To awareness about all the investment schemes to potential customers. ? To study awareness about Bonanza Portfolio Product & Service.
OBJECTIVE OF THE PROJECT
? To study & analysis how Customer’s invest there fund and what is expected rate of return on their investment. ? To find out how people are saving their tax. ? To find the consumers preference towards Bonanza Investments Pvt. Ltd
2 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
Introduction about Investment
Investment is the sacrifice of certain present value for the uncertain future reward. It entitle arriving at numerous decisions such as type, mix, amount, timing, grade etc. of investment and disinvestment, further, such decisions making has not only to be continuous but rational too. Investment choices or decisions are found to be the outcome of three different but related classes of factors. The first may be described as factual or informational premises. The second class of factors entering into investment decisions may be described as expectation premises. The third and final class of factors may be described as valuational premises.
"Investment" or "investing", like "value" is a word of many interpretations.
There are basically three concepts of investment.
? Economic investment that is, an economist’s definition of investment. ? Investment in a more general or extended sense, which is used by "the man on the street”. ? The sense in which we are going to be very much interested, namely, financial investment.
The term economic investment has a rather precise meaning in the literature of economic theory. Typically it includes net additions to the capital stock of society. By 'capital stock of society' is meant those goods, which are used in the production of other goods. 3 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
The everyday usage of the term investment can mean a variety of things, but to the man on the street it usually refers to a money commitment of some sort. For example, a commitment of money an "investment" from an individual's point of view. But these are so in very general and in much extended sense of the word since no rate of return is involved, nor is a financial return or capital growth expected.
Financial investment is a form of this general or extended sense of the term. It means an exchange of financial claims- stocks and bonds, real estate, mortgages etc. The term financial investment is often used by investors to differentiate between the pseudo investment concept of the consumer and the real investment of the businessman semantics aside, there is still a difference between an "investment" in a ticket on a horse and the construction of a new plant; between the forming of a watch & the planting of a field of corn. Some investments are simply transactions among people, others involve nature. The letters are "real" investments; the former are "financial" investments. Investment would imply the employment of funds with the objective of realizing additional income or growth in value of investment at a future date.
Type of Investment
? Short term investment ? Medium term investment Long term investment
4 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
Short Term Investment
? There are some mutual fund in this no lock in period. ? Investment in share. ? Investment in Portfolio Management Service(PMS).
Medium Term Investment
? Post Office Monthly Income Scheme (MIS). ? Tax saving Bonds of ICICI and IDBI. ? Equity Linked Savings Schame of Mutul Funds(ELSS).
Long Term Investment
? Investment in House Property. ? Life Insurance Schemes. ? Investment in Portfolio Management Service(PMS). ? Investment in share.
Benefit of Investment
? Tax Benefit ? Long term Benefit
5 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
Deduction available to Individuals/HUF The assessee can also claim the benefit of deductins for investments and other purposes as explained below. Sr. No. Nature of Particulars Amount deduction 1. Eligible Amounts invested / deposited / Upto Rs. 100,000 Investments / paid in :Each year Payments (80C) (a) National Saving Schemes / National Saving Certificate (b) Life Insurance premium (c) Contributed to Provident Fund / PPF (d) Reapayment of housing (e) Approved equity mutual funds (f) School / college tuition fees for children (g) Infrastructure bonds / equity shares, debenture or units of mutual funds approved by CBDT in this regard 2. Contribution to Amount to be deposited under a Upto Rs. 10,000 each year pension fund contract for any annuity plan of (80CCC) LIC or approved life insurance company. Amount allowed as deduction with bonus or interest is taxable in the year of receipt 3. Contribution to Amount contributed to pension Amount contributed upto pension funds by fund notified by the government 10% of salary Government for such persons. Amount Employees joining allowed as deduction together service on or after with bonus of interest is taxable 1.1.2004 (80CCD) in the year of receipt 4. Cap on Deduction Maximum Deduction u/s 80C, 80 (80CCE) CC & 80 CCD cannot exceed Rs. 100,000 5. Payment for Premium on health insurance Upto Rs. 10,000 each year medical insurance policies of self, spouse, Senior citizens may claim premium (80D) dependent parents or children or deduction upto Rs. 15,000 any member of HUF 6 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
Following are the tax benefit are given by the Income Tax Act. 6. Expenses on Paid for treatment of self and Upto Rs. 50,000 a year medical treatment dependents suffering from for a person with (80 DDB) specified aliments. The assessee disability and Rs. 75,000 is required to furnish a for person with severe certificate from a specialist as disability. may be prescribed Expenses on Paid for treatment of self and Upto Rs. 60,000 for medical treatment dependents suffering from Senior Citizen and Rs. (80DDB) specified aliments. The assesee 40,000 for others is required to furnish a certificate from a specified as may be prescribed Payment of rent For payment of rent for self Last of following (80 GG) occupied residential premises. (i) Rs. 2,00 p.m. Available to salaried employees (ii) 25% of total incomes only if he does not receive (iii) Rent paid in excess HRA of 10% of income Donation (Sec. 80G) All assesses are allopwed deduction in respect of donations for charitable purpose to the extent of 50% of such donatins. If such aggregate donation is more than 10% of the gross total income, then such deduction will be restricted to 50% of 10% of such gross total income. In aqdditio to the above , donations for certain specified purposes or to funds i.e. Prime Miniters Relief fund etc. qualify for deduction equal to 100% of the donation made, without any limit of in relation of the total income being applied.
7.
8.
9.
EXEMPTED CAPITAL GAINS :Investment in house property :
Exemption of long – term Capital gain arising from the transfer of residential house property (sec. 54) is allowed if the amount of capital gain is utilized in purchase/ construction of another residential house, either within one year before the date of transfer or within two years of that date for outright purchase and three years for construction. 7 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
Investment in specified bonds
Capital Gains arising from trasfer of any long term capital asser, is exempt to the extent of investment made within six months in- Bonds of National Bank for Agriculture and Rural Development (NABARD) issued on or after 01-04-2000; Bonds oNational Highway Authority of India (NHAI) issued on or after 01-04-2000;
Bonds of Rural Electrification Corporation (REC) issued on or after 01-04-2001 that are redeemable after three years;
Bonds of National Housing Bank (NHB) issued on or after 0104-2002 which are redeemable after three years;
Bonds of Small Industries Development Bank of India (SIDBI) issued on or after 01-04-2002 that are redeemable after three years.
The exemption will be withdrawn if the bonds are transferred or converted into money or any loan is taken against the securityof the bond within 3 years from the date or acquisition of the bond. In that case the anount exempted earlier will become taxable in the year in which the bonds are transferred.
8 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
In case of long – term capital gains on capital assets other than house property, exemption is allowed if the net sale consideration is utilized in the purchase/ construction
of a residential house either within a year before the date of transfer or within two years of that date for outright purchase or three years for construction provided the assessee does not own more than one house property on the date of transfer.
INCOME FROM OTHER SOURCES
This is a residual head covering income such as Winning from lotteries, interest, etc. Deduction for expenditure (not of the nature of capital expenditure) is allowed which is laid out or expended wholly and exclusively for the purpose of making or earning such income. Your tax – saving ‘quick checklist’ Investment Scheme Investment Tax savings * NSC/ PPF/ ELSS/ ICICI 100,000 IDBI Infrastructure Bonds ICICI Prudential Life 10,000 3,300 Maximum 33,660
Insurance pension plans Mediclaim policy 10,000 3,300
Company Vision
? To be the premier provider of investment advisory and financial planning services in India ? To be a leading investment intermediary for transactions through both online and offline medium 9 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
Company History
Bonanza Portfolio was founded by a group of professionals in 1995, a seemingly distant past in the Internet age. Our meticulous research was published and distributed in printed form to a client base comprising the who's who of Indian business including leading MNCs, investment banks and consulting firms. The quality of research was highly acclaimed and soon became the industry benchmark. Over the last few years, our research coverage has grown to cover practically all companies, sectors, economy and financial markets. The breadth and depth of our content is unmatched - stock markets, mutual funds, personal finance, taxation and economy.
Enter - the Internet
We saw an opportunity to expand our client base, from a few hundreds to several millions and also to complete the value chain. In early 1999, when Internet penetration in India was at its infancy and the future unknown, we took the hard decision of killing our earlier business model and embracing the Internet. We discontinued delivery of reports in printed form and made available quality research at the click of a mouse. Thus, was born www.Bonanzaonline.com. The site has emerged as the most popular website on Indian business and finance. A publication, no less than Forbes has chosen us in their ‘Best of the Web’ under the Asian Investing category. Its no surprise that Bonanza Portfolio is the
one and only Indian website to make it to the exalted list. To quote Forbes - "… a must read for investors in South Asia"
10 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
Company Work Method
We follow a simple approach to research as follows: ? Data collection ? Analysis ? Communication ? Feedback All our analysts have significant experience, which they share with each other. We believe we have discovered fairly innovative sources of data, that helps to keep ahead to identify trends. Experience and rapport with the Indian corporate world, built up over the years is also a great help.It would be unfair on our part not to mention the immense contribution, which our clients and readers have made. Their feedback forms the QC as well as R&D for us. The feedback helps us in all stages- data collection, analysis and communication. More importantly, in improving our methodology as well. Drop us a line, right away, giving us your feedback. Our research team comes out with regular, specialized reports in strategic sectors. These are priced reports that receive tremendous response. We have serviced clients like Mckinsey and Co, Ernst and Young, Compaq, Saint Gobain, Citibank, Hindustan Lever Limited (Subsidiary of Unilever Plc) and Star TV to name a few. We also undertake customized research in all sectors according to the specific needs of the clients.
Completing the Chain
11 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
We forayed into investment transaction space in early 2000 to complete the value chain. We offer E-broking services and door to door service to investors for a gamut of products ranging from Mutual Funds, GoI Securities to Fixed Deposits and Insurance. While our strong base of offline customers gives us a headstart, we continue to pioneer online offerings of these services. We were the first company in India to sell Mutual Funds online.
Investor Points - A Human Touch
We have an well-entrenched physical network of 75 Investor Points. At these Investor Points, customers can see our human face and get service unparalleled in India. The Investor Points also help educate investors and aid financial transactions in smaller towns with the use of computers and the Internet. We also provide clients with financial planning and taxation advisory services to ensure that they get the maximum out of their hard-earned money. Apart from our acclaimed research capabilities, we have a group of trained and professionally qualified Financial Advisors to cater to the requirements of our clients.
Company Management Team
Mr. Nirmal Jain
Nirmal Jain is the founder and Chairman of Bonanza Portfolio Ltd . He holds an MBA degree from IIM Ahmedabad, and is a Chartered Accountant (All India Rank 2) and a Cost Accountant. He has had an impeccable professional and academic track record. He started his career in 1989 with Hindustan Lever Limited. During his stint with Hindustan Lever, he handled a variety of responsibilities, including exports and trading in agro- commodities with Rs3bn annual turnover. He then joined hands with two local brokers to set up their 12 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
equity research division, Inquire, in 1994. His work set new standards for equity research in India. In 1995, he founded his own independent financial research company, now known as Bonanza Portfolio Ltd .
Mr. R Venkataraman
R Venkataraman is the co-promoter and Executive Director of Bonanza Portfolio Ltd . He holds a B. Tech degree in Electronics and Electrical Communications Engineering from IIT Kharagpur and an MBA degree from IIM Bangalore. He has held senior managerial positions in various divisions of ICICI Limited, including ICICI Securities Limited, their investment banking joint venture with J P Morgan of USA and with BZW and Taib Capital Corporation Limited. He has also held the position of Assistant Vice President with G E Capital Services India Limited in their private equity division. He has varied experience of more than 14 years in the financial services sector.
The Board of Directors
Apart from Nirmal Jain and R Venkataraman, the Board of Directors of Bonanza Portfolio comprises:
Mr Sat Pal Khattar (Non Executive Director)
Mr Sat Pal Khattar joined the Board with effect from April 20, 2001. Mr Sat Pal Khattar is a lawyer by profession He was the founding partner of a firm of solicitors in Singapore named KhattarWong and at present is a Consultant in the said firm. He is also a director of a number of public companies in Singapore and India. He is the Chairman of 'Network 13 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
India', a body sponsored by the Government of Singapore, which promotes two-way business contacts between Singapore and Indian business interests.
Mr Sanjiv Ahuja (Independent Director)
Mr Sanjiv Ahuja joined the Board with effect from August 28, 2002. Mr Ahuja graduated from National University of Singapore with a degree in Computer Science and is also a Certified Public Accountant. He started his career in 1988 with Accenture (formerly Andersen Consulting) and has worked on several large projects particularly in the electronics and utilities industries. He joined the Thakral Group of Companies in 1991 as the Chief Executive of their electronics packaging and Warehousing company in Singapore and has also headed the group's Indian Investments division. He started his own investment advisory and consulting company in 2001, named Centennial Management Consultants Private Limited, focusing on investment mediation and investment management and advice. At present, he is also an Executive Director with Corporate Brokers International Private Limited, a reputed Singapore based mergers and acquisitions firm focusing on the SME space and also a board member of the Singapore Indian Chamber of Commerce and Industry, a post he has held since 2002. He is very familiar with the South Asian and South East Asian Markets and has direct investment experience in a variety of industries including real estate development, distribution and information technology. Mr Ahuja has an experience of more than 17 years.
Mr Nilesh Vikamsey (Independent Director)
14 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
Mr Nilesh Shivji Vikamsey joined the Board with effect from February 11, 2005. Mr Vikamsey qualified as a Chartered Accountant in 1985 and has been a member of the Institute of Chartered Accountants of India since 1985. He has a Diploma in Information System Audit ("DISA") from the Institute of Chartered Accountants of India in 2003. In 1985, Mr Vikamsey was inducted as partner in M/s Khimji Kunverji & Co., Chartered Accountants and was in charge of the audit department till 1990 and thereafter also handles assignments related to financial services, consultancy, investigations, mergers and acquisitions, valuations etc. Mr Vikamsey is a director of Alpha Garments Private Limited, English Apparels Private Limited, HLB Technologies (Mumbai) Private Limited, Miloni Consultants Private Limited & Chairman of HLB India. Mr Vikamsey is a member of the Accounting Standards Board and erstwhile Member of the Vision & Restructuring Commitee of Institute of Chartered Accountants of India and member of Expert Committees of Law and Company Affairs, Infotainment & Media and Economic & Business Reforms formed by the Indian Merchants' Chamber.
Mr Kranti Sinha (Independent Director)
Mr Kranti Sinha joined the Board with effect from January 27, 2005. Mr Sinha graduated from the Agra University with a Masters degree. He started his career in 1965 as a direct recruit Class I officer with Life Insurance Corporation of India and has worked in various capacities and at different locations throughout the country. He worked at various managerial levels and rose through the hierarchy to serve as the Director and Chief Executive of LIC Housing Finance Limited from August 1998 to December 2002 and concurrently as the Managing Director of LICHFL Care Homes (a wholly owned 15 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
subsidiary of LIC Housing Finance Limited). He retired from the permanent cadre of the Executive Director of LIC. He has also served as the Deputy President of the Governing Council of Insurance Institute of India and as a member of the Governing Council of National Insurance Academy, Pune apart from various other such bodies. He is currently the Managing Director of The Global Institute for Financial and Education Services (India) Private Limited (a wholly owned subsidiary of The Global Institute, LLC, USA). Mr Sinha is also on the Board of Directors of Hindustan Motors Limited, Larsen & Toubro Limited & LICHFL Care Homes Limited.
Bonanza Portfolio Ltd
Bonanza Portfolio Ltd is listed on both the leading stock exchanges in India, viz. the
Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE). The Bonanza Portfolio group, comprising the holding company, Bonanza Portfolio Ltd and its
subsidiaries, straddles the entire financial services space with offerings ranging from Equity research, Equities and derivatives trading, Commodities trading, Portfolio Management Services, Mutual Funds, Life Insurance, Fixed deposits, GoI bonds and other small savings instruments to loan products and Investment banking. Bonanza Portfolio also owns and manages the websites, www.bonanzaonline.com and www.5paisa.com .
16 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
For the nine months ended December 31, 2005, Bonanza Portfolio Ltd
had a total income
of Rs 1323.40 Mn up 179% for the same period for the previous year with a PAT of Rs 324.00 Mn, which is a growth of 146% for the same period for the previous year.
Bonanza Portfolio Ltd , being a listed entity, is regulated by SEBI (Securities and Exchange Board of India). It undertakes equities research which is acknowledged by none other than Forbes as 'Best of the Web' and '…a must read for investors in Asia'. Bonanza Portfolio 's research is available not just over the internet but also on international wire services like Bloomberg (Code: IILL), Thomson First Call and Internet Securities where it is amongst the most read Indian brokers. Its various subsidiaries are in different lines of business and hence are governed by different regulators. The subsidiaries of Bonanza Portfolio Ltd are:
Bonanza Portfolio Pvt Ltd
Bonanza Portfolio Pvt Ltd is a 100% subsidiary of Bonanza Portfolio Ltd , which is
engaged in the businesses of Equities broking and Portfolio Management Services. It holds memberships of both the leading stock exchanges of India viz. the Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE). It offers broking services in the Cash and Derivatives segments of the NSE as well as the Cash segment of the BSE. A SEBI authorized Portfolio Manager, it offers Portfolio Management Services to clients. These services are offered to clients as different schemes, which are based on differing investment strategies made to reflect the varied risk-return preferences of clients. 17 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
Bonanza Portfolio Commodities Pvt Ltd
Bonanza Portfolio Commodities Pvt Ltd is a 100% subsidiary of Bonanza Portfolio
Ltd, which is engaged in the business of commodities broking. It holds memberships of both the leading Commodity exchanges in India viz. the Multi-Commodities Exchange (MCX) and the National Commodity and Derivatives Exchange, India (NCDEX).
Bonanza Portfolio Distribution Co Ltd
Bonanza Portfolio Distribution Co Ltd is a 100% subsidiary of Bonanza Portfolio Ltd
and is engaged in the business of distribution of Mutual Funds, IPOs, Fixed Deposits and other small savings products. It is one of the largest 'vendor-independent' distribution houses and has a wide pan-India footprint of over 150 branches coupled with a huge number of 'feet-on-street', which help source and service customers across the length and breadth of India. Its unique value proposition of free doorstep expert advice coupled with free pick-up and delivery of cheques has been met with an enthusiastic response from customers and fund houses alike.
Bonanza Portfolio Insurance Services Ltd
Bonanza Portfolio Insurance Services Ltd is also a 100% subsidiary of Bonanza
Portfolio Ltd and is a registered Corporate Agent with the Insurance Regulatory and Development Authority (IRDA). It is the largest Corporate Agent for ICICI Prudential Life Insurance Co Ltd, which is India's largest private Life Insurance Company.
18 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
Bonanza Portfolio Insurance Brokers Ltd
Bonanza Portfolio Insurance Brokers Ltd is a 100% subsidiary of Bonanza Portfolio
Ltd and is a newly formed subsidiary which will carry out the business of Insurance broking. We have applied to IRDA for the insurance broking licence and the clearance for the same is awaited.
Bonanza Portfolio Investment Services Ltd
Bonanza Portfolio Investment Service Ltd is also a 100% subsidiary of Bonanza
Portfolio Ltd . It has an NBFC licence from the Reserve Bank of India (RBI) and offers margin-funding facility to the broking customers.
Company Portfolio of offerings
19 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
C o m m o ditie s
In fo rm a tio n & A d v ic e
E q u itie s
In s ur a n c e
M u tu a F u n d l
F ix e d In c o m e pr o d u c ts
E x e c u tio n & S e rv ic e
Investment Schemes available for customer from Bonanza Portfolio Ltd
Small Saving Schemes
20 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
Administered through Post Office, these are ideal for small investors looking for fixed return with high safety. A number of schemes with varying tax treatment,monthly income option,and carrot of bonus too.No TDS’ is the tempting sweetener.
Post office monthly Income Scheme
Who can invest Returns Return Periodicity Min.amount Max.amount Individuals 8%p.a.plus 10%bonus on maturity (yield9.32%) Monthly Rs.6,000 Rs.300,000in single account and Rs.600,000in joint account. Period Minimum lock-in-period Risk Issuer Tax benefits Liquidity Special Features 6 years 3 years Risk-Free GoI through post Office No TDS Can be withdrawn after 3 years Account is transferable to any Post Office
9%Senior Citizens Schemes
Who can invest Returns Tilak Maharashtra University Individuals 9%p.a. 21 New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
Return Periodicity Min.amount Max.amount Lock-in-period Extension flexibility Risk Issuer 5years
Quarterly Rs.1, 000 Rs.1, 500,000
3years Risk-Free GoI through post Office and Nationalized Banks.
Tax benefits Liquidity
No Tax benefit Premature withdrawal after a period of one year will be allowed, subject to some deductions.
Nomination Age Criteria
Yes Citizens of 60years of age and above are eligible to invest.
Additional benefits
Citizens who retired under a voluntary or a special voluntary retirement scheme and have attained the age of 55 years are also eligible, subject to specified conditions.
Public provident Fund
Who can invest Returns Tilak Maharashtra University Individuals and Hindu Undivided Family 8%p.a.computed on monthly balance. 22 New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
Return Periodicity Min.amount Max.amount Lock-in-period Extension flexibility Risk Issuer Tax benefits Liquidity
Returns will be credited annually. Rs.500 Rs.70,000 15years Yes. This can be done in a block of 5years at a time. Risk-Free Government of India Deduction u/s80 C.Intrest tax free under Section 10. No withdrawals till6years.
One withdrawal thereafter per year. Nomination Though account can be opened in minor’s name,anyone except a minor can be a nominee. Additional benefits Additional information No court attachment. Available only at designated branches of certain Nationalized banks and Post Office.
National Savings Certificates
Who can invest Returns Tilak Maharashtra University Anybody 8%p.a.compounded. 23 New Satara College of Engg. & Mgmt, Pandharpur
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Lock Periodicity Min.amount Max.amount
On maturity after 6years Rs.100 No upper limit.
Period Minimum lock-in-period Security/Risk Issuer Tax benefits
6 years Entire tenure None GoI through post Office Deduction u/s80C.Interest is also eligible under section 80C. No TDS If money is invested in minor’s name then section 80C benefit can’t be availed.
Liquidity Special Features
Can be withdrawn after 3 years Account is transferable to any Post Office.
Unit Link Insurance Plan (ULIP)
Who can invest Individuals between 12and 55years. 24 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
Returns Return Periodicity Min.amount Max.amount Lock-in-period
Variable returns in terms of dividend&NAV. Divident is usually snnual (If declared). Rs.15,000 Rs.200,000 10or15years as per the plan.Premature withdrawal possible after 3years.
Risk Issuer Tax benefits
Medium risk Unit Trust of India Deduction u/s80 CIncome is tax free under Section 10(10D).
Liquidity Additional benefits
Highly liquid.Weekly NAV based Sale/Purchases. Life Insurance covere upto taget amount subject to a maximum of Rs.200,000.Accident insurance cover upto Rs.50,000.
BONDS & DEPOSITS
25 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
RBI bonds for supreme safety with sovereign guarantee. ICICI/IDBI bonds will save tax if you are not in high-income bracket.Capital Gain bonds,a cool way to escape long-term capital gain tax on property etc.Company Fixed Deposits were earlier a popular investment option which are now losing their charm owing to taxable interest income coupld with questionable credit worthiness of some companies.
ICICI Safety Bonds/IDBI Flexi bonds-Tax saving Bond
Who can invest Returns Min.amount Max.amount Period Risk Issuer Tax benefits Liquidity
Anybody Fixed, depending on the issue. Rs.5, 000 Rs.100, 000to avail of Section 80C benefit. 3years AAA rated but moderate risk ICICI Bank/IDBI Deduction u/s80C Poor due to lock-in for 3 years.
FIXED DEPOSIT
Fixed Doposits (Manufacturing Cos) 26 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
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Who can invest Returns Return periodicity Min.amount Max.amount Min.and Max. period Lock in period Issuer Tax benefits Liquidity
Individuals and bodies Intrest on deposits. On maturity of the deposits. Rs.5, 000 NO upper limit. 6month and 3 years. Till maturity. Manufacturing companies. No TDS if intrest is upto Rs2,500p.a. Low-Moderate.
MUTUAL FUNDS
27 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
Instead of investing on your own, for a small fee, a set of experts do it for you though mutual fund schame.You can close the risk profile and asset mix.Liquid for low return instant liquidity, Debt /income for fixed income assets and a host of equity funds for highrisk high-reward investing.
About Mutual Funds Mutual Funds pool money of various investors to purchase a wide variety of securities while pursuing a specific goal. Selection of Securities for the purpose is done by specialists from the field. Returns generated are distributed to the Investors. Mutual Fund Companies offer various schemes. Investors can choose any particular Fund/Scheme or mix of Funds/Schemes depending upon their perception towards risk. Investment is done on the basis of prevailing Net Asset Values of various schemes.
Mutual Funds Investments are subject to Market Risks.
Mutual Funds – Growth/Equity Funds
28 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
What ere these
These are funds where the investment objective is to generate long-term capital appreciation.
Who can invest Suitable for whom
Anybody Young investors and people who can take high risk.
Returns
Market linked. Reflected by Net Asset value (NAV) Investment Patterns Typically 90% in Equity and 10%in cash or Money market instruments/Debts.
Min. & Max. amount
Minimum amount is usually Rs 1,000 in most funds. Some may have higher amount.
Period Risk Issuer Tax benefits Liquidity
Some funds may have lock in period. High. Various Asset Management Companies. Dividend is tax-free. Highly Liquid. In case of open-ended funds, the AMC will provide liquidity. In case of close-ended funds, they can be traded on the stock markets.
Equity Linked Savings Scheme of Mutual Funds (ELSS)
29 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
Who can invest Returns Return periodicity Min. & Max. amount What in Period Lock are these Risk Who can invest Issuer Suitable for Whom Tax benefits Returns Liquidity Investment patterns
Individuals and HUF Variable, both in terms of dividend & NAV Dividends are usually annual. After 3 years it can be sol at prevailing NAVs Rs. 500. No upper limit These are closed – ended debt funds 3years where the investment objectives is to generate safe andNAV depends on market investments Very high as fixed returns. Anybody Asser Management Companies Various For Investors who want safe and stable returns Deduction u/s 80C. Income is tax-free u/s10 4-6%. Typically reflected by Net Asset sale/purchase is Liquidity only after three years where Value (NAV)NAV based on Typically 100% in government securities. Sone have a mix of around 25-30% in equity and 75-70% in government securities
Min & Max amount Minimum amount is usually Rs. 10,000 in most funds. Some may have higher amount Period Typically from 6 months to 5 years. The funds are locked-in for the entire duration . Risk Low Issuer Tax benefits Liquidity Various Asset Management Companies None
Fixed Maturity Plan (FMP)
30
Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur Since these are closed-ended funds, Returns are available only at the end of the tenure
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LIFE INSURANCE SCHEMES
31 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
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Insure your life, plan for a financially secure future for your family and get attractive tax breaks along the way. All this is possible with a single class of products, Life Insurance. Get adequate life cover coupled with total peace of mind.
Save’n’Protect
What are these Who can invest Suitable for whom Min & Max sum insured Min & Max Entry age Max cover ceasing age Period Liquidity Endowment Plan for Life Insurance Individuals For people who are looking for insurance protection + moderate returns on their investment Rs. 50,000. No upper limit 0 to 60 years 70 years Fixed term plan for 10 to 30 years One can get surrender value if policy is terminated after 3 years. If terminated before 3 years no surrender value is given. Deduction under section 80C. All maturity proceeds tax-free under section 10 (10D) Accident and disability rider, critical illness benefit rider Other benefits 5 years extended life cover for 50% sum assured after maturity of policy . Loan available against paid up value of the policy.
Tax benefits Add-on benefits available
Cash Bak
32 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
What are these
Anticipated Insurance Individuals
Endowment
Plan
for
Life
Who can invest Suitable for whom
For people who are looking for insurance protection + liquidity (period return ) on their investment Rs. 75,000. No upper limit 16 to 55 years 70 years Fixed term plan for 15 to 20 years
Min & Max sum insured Min & Max Entry age Max cover ceasing age Period
Liquidity
Survival benefit paid in regular intervals at the end of 3,6,9,1215 years or 4,8,12,16,20years depending on the plan.
Tax benefits
Deduction under section 80C. All Maturity proceed tax-free under section 10 (10D)
Add-on benefits available
Accident and disability rider, critical illness benefit
Life Guard
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Master of Business Administration
What are these Who can invest Suitable for whom
Term Insurance Plan Individuals For people who are looking for Insurance as a pure risk cover . Sum Assured subject to minimum premium upto Rs.2,400. Max upto Rs. 1,000,000 18 to 55 years 65years One can get surrender value if policy is terminated after 3 years only in case of Lifeguard Return of Premium (ROP). If terminated before 3 years no surrender value is given in case of the Lifeguad Single Premium (SP) and LifeGuard Level Term Assurance . Deduction under section 80C.
Min & Max sum insured
Min & Max Entry age Max cover ceasing age Liquidity
Tax benefits Sum Assured as chosen . Death benefits Add-On benefits available Accident and disability benefit riders only for regular premium plan. Not available for LifeGuard Single Premium
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Master of Business Administration
Life Time Pension II
What are these Regular prmium linked deferred Pension Plan. Individuals For people who are looking for regular pension + risk cover during working years. Minimum 10,000. premium amount of Rs.
Who can invest Suitable for whom
Min & Max sum insured
18 to 60 years Min & Max Entry age Liquidity No withdrawal before 3 years and full withdrawal anytime after 3rd year. No partial withdrawal allowed.
Tax benefits
Deduction under section 80CCC upto Rs. 10,000. Commuted pension tax-free.
Other benefits
Option to choose between Pension Maximiser II, Pension Balancer II, Pension Protector II and Pension Preserver funds and also option to switch between them. 4 free switched in a policy years. Power to choose your retirement date. Top-up minimum Rs. 5,000
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Smart Kid
(Unit Linked Regular premium)
What are these Who can invest
Child Plans Parents in the age of 20-60 having children in the age group of 0-15 years.
Suitable for whom
For people who are looking to secure their child’s education . Minimum premium amount of Rs. 18,000. Max. amount is umlimited. Maximum of 5 with drawals any time after completion of 5 years. Deduction under section 80C. All maturity proceeds tax-free under section 10 (10D).
Min & Max amount
Liquidity
Tax benefits
Periodic pay-outs at regular intervals. Other benefits Additional rider benefits of Income Benefits Rider and Accident and Disability Benefit Rider . Option to take a premium holiday. Option to contribution increase/decrease annual
36 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
EQUITIES
Over longer term, equities have yeilded highest returns, provided you have ability to pick up good stocks and hold them for a longer term. The Bonanza Portfolio team will help you with their research, advisory support.
There are two options while investing in shares of Companies; subscribing to share during an IPO (Primary maker) and trading in listed shares of Companies in the Secondary maker. For the latter option. 5paisa has an amazing product, which will enable you to Buy and Sell shares over the Internet, faster that you can blink.
You can also invest online in all the latest IOPs by simply logging on tohttp://www.indiainfoline.com. Investing in IPOs in now just a click away. In just three simple steps, you can transact in the latest IPOs: 1. 2. Logon, Key-in the quantity and specify your price or bid at cut-off, and 3. Transfer the required amount using your Online banking account with ICICI Bank or HDFC Bank.
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Master of Business Administration
Facility by Bonanza Portfolio a. Bonanza Portfolio is the only one offering you the facility to transfer money online for transacting in IPOs from multiple banks. Currently you can transfer funds from ICICI Bank and HDFC Bank. Soon this list will expand to cover much more number of banks. b. Transacting online in IPOs is completely safe, only it doesn't involve filling up endless froms and marking several signatures and is much more convenient.
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Listed Shares of Companies in the Secondary Market
Who can invest Returns When will I get the Returns
Anybody other than trusts. Variable returns both in terms od dividend as well as capital appreciation. Dividends are usually annual. Gain/Loss realized as and when the shares are sold. No lock in period . These can be freely bought and sold in stock exchanges through regisrered brokers . None
Min lock in period
Security Limited Companies Issuer Tax Benifits Profit are taxed as long term or short term capital gains. Long term capital gaind are tax-free if shares are traded on the stock exchange and short term capital gains on listed securities are taxable @ 10%. High-risk Risk High. Liquidity
PORTFOLIO MANAGEMENT SERVICE
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Master of Business Administration
When it comes to managing your hard-earned money, leave it to the experts. With a little help from us, your portfolio can consistently earn market - beating returns. Choose from growth and momentum schemes.
Who can invest Returns Return periodicity Min and Max amount Min Period
Individuals and bodies Market linked but backed by our experience in the stock markets. Appreciation based on increasing NAV of portfolio. Rs. 500,000. No upper limit. There is no specified minimum period, we recommend keeping your portfolio invested for atleast one year. There is no cap on the maximum period. None Bonanza Portfolio Securities Pvt. Ltd. Profits are taxed as long term or short term capital gains. Long term capital gains are tax - free if shares are traded on the stock exchange and short term capital gain on listed securities are taxable @ 10%
Max. Period Locked in period Portfolio Manager Tax benefits
Risk
Moderate to high depending on the scrips in the portfolio. You can withdraw your portfolio whenever you choose.
Liquidity
Investments:40 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
The Money we earn is partly spent & the rest saved for meeting future expenses. Instead of keeping the saving idle we may like to use saving in order to get return onit in the future. This is called as Investment Investment means “Sacrificing today some money to get more earning in future or at tomorrow”. When person sacrifice money for the motive of earn something more at that time that is the investment. Then there whatever the avenue / instrument. E.g. ? When person betting on Indian Cricket match ? When any person purchases a Lottery ? Any person saves his money on his Saving A/c ? Or any person purchase share from share market Above all are the examples of investments. There are the following reason due to which any person invest his money that are
? Earn return on idle resources ? Generate a specified sum of money for a specific goal in life ? Make a provision for an uncertain future.
Portfolio
ortfolio is a combination of different investment assets mixed & matched for the purpose of achieving an investor’s goals. Items that are considered a part of our portfolio can include any asset which we own from shares, debentures, bonds, mutual funds units to items such as gold, art and even real estate etc. However, for most investors a portfolio has com to signify an investment in financial instruments like Shares, debentures, fixed deposits, mutual fund units & other investment avenues.
Methodology of Project
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Project methodology is a process of collecting the information and helps to find out solutions to topic selecting. Following are the various techniques used for collecting of data: • • • • • • Field work Observation Interview Questionnaire Interactive Sessions with Investors Internet
Primary Data Collection
All the information is collected by on fieldwork experience under guidance of Mr. Ravi Pratap, financial service consultant (team leader), Bonanza Portfolio. I have chosen the questionnaire, observation and fieldwork methods because this is considered as one of the best and assisting methods for collecting information.
Secondary Data Collection
Theory information about Bonanza Portfolio products are collected from investors hand book of Bonanza Portfolio I have also collected information from web site of the company and other information from other web site these are given in bibliography.
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Type of project:
The type of research, which is used in this survey, is Descriptive research. Descriptive research include survey and fact finding inquiries of the different kid. It attempts to determine the frequency with which something occurs or the relationship between two phenomenon’s. The main purpose of descriptive research is the description of the state of affairs, as it exists at present. In this researcher has no control over the variable. The survey method help in measuring the magnitude like opinion, awareness etc. Which are essential to describe the phenomenon.
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1) Data of annual income
Annual Income Range Rs.1.5 Lac To 2.5 Lac Rs.2.5 Lac To 5 Lac Rs 5 Lac TO 7.5 Lac Rs 7.5 Lac 10 Lac Above Rs 10 Lac.
NO. Of Person 13 37 30 12 8
8 12
13
Rs.1.5 Lac To 2.5 Lac Rs.2.5 Lac To 5 Lac Rs 5 Lac TO 7.5 Lac Rs 7.5 Lac 10 Lac 37 30 A bove Rs 10 Lac.
? The above data shows that 37 people are ? 30 people are Rs 5 Lac TO 7.5 Lac range. ? 13 people are Rs.1.5 Lac To 2.5 Lac range. ? 12 people are Rs 7.5 Lac 10 Lac range. ? 8 people are Above Rs 10 Lac. Range.
Rs.2.5 Lac To 5 Lac range.
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Master of Business Administration
2)Data of how to invest in a current situation.
Type Of Investment PPF NSC FIXED DEPOSIT POST OFFICE INSURANCE MUTUAL FUND SHARE PMS COMMODITIES BONDS HOUSING LOAN No. Of Person Invest 5 2 12 2 37 45 50 2 2 13 55
25%
2% 5% 1% 1% 16%
PPF NSC FIXED DEPOSIT POST OFFICE INSURANCE MUTUAL FUND
6% 1% 1% 22% 20%
SHARE PMS COMMODITIES BONDS HOUSING LOAN
? The above data of how to invest people there fund in current situation. The above data also 100 people but many of people invest there fund in one or more scheme so the no of person is more. So I make a pie chart in a percentage. 45 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
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3) How people are taking a risk.
Type Of Risk High Risk Medium Risk Low Risk
No. Of Person 25 60 15
15 25
High Risk Medium Risk Low Risk
60
? The above chart shows that how to take risk by people. On the basis of investment factor. ? In this 60 person are taking a medium risk. ? 25 Person are taking a high risk. ? 15 Person are taking a low risk.
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4) In insurance which policy people invest there fund.
Insurance Policy Type For Kids For Life For Pension
No. of Person 30 40 30
For Kids For Life For Pension
? The above chart shows that how to in insurance which policy people invest there fund.
? In this 30 person are taking for a children’s policy. ? 40 Person are taking a life insurance policy. 47 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
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? 30 Person are taking a pension policy.
5) Data of how to invest in a future situation.
Type Of Investment PPF NSC FIXED DEPOSIT POST OFFICE INSURANCE MUTUAL FUND SHARE PMS COMMODITIES BONDS HOUSING LOAN No. Of Person Invest 5 2 12 2 37 45 50 2 2 13 55
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1% 1% 5% 21% 1% PPF NSC FIXED DEPOSIT POST OFFICE INSURANCE MUTUAL FUND SHARE PMS COMMODITIES BONDS HOUSING LOAN
18%
4% 3% 5% 19%
22%
? The above data of how to invest people there fund in future situation. The above data also 100 people but many of people invest there fund in one or more scheme so the no of person is more. So I make a pie chart in a percentage. ? Now in a future investment many people are taking a high risk. So the market will be a potential for investment. ? Many people are invest for the tax benefit also.
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6)Data of investment nature.
Investment Nature Weekly Monthly Quarterly Yearly
10 5
N
f.Person 5 65 20 10
20
Weekly Monthly Quarterly Yearly 65
50
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? The above data shows that in which nature people are invest there money in the various schames. ? 5 Person are invest there money in weekly nature. ? 65 Person are invest there money in monthly nature. ? 20 Person are invest there money in quarterly nature. ? 10 Person are invest there money in Yearly nature.
7) For What purpose people are interested to invest?
Purpose of Invest Tax benefit Liquidity Earn return Retirement purpose No. of Person 30 20 30 20
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Tax benefit Liquidity Earn return Retirement purpose
? The above data of purpose of investment. ? 30 Person are investing for tax benefit. ? 20 Person are investing for liquidity benefit. ? 30 Person are investing for earn return on investment. ? 20 Person are investing for retirement purpose.
Conclusion
On the basis of study it can easily concluded that the brand name of Bonanza Portfolio is not very popular, but the service provided by the Bonanza Portfolio can be number one brand in future.
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Product of the Bonanza Portfolio is good for higher and lower investor, and it is a leading player in the market. It has the strength of experience, technology, accessibility, knowledge, and skilled manpower. That provides it the opportunity to be the number one market player.
Limitation of this project was like
:
? Time limitation for marketing research.
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? Segment is not define
? Finding data is related to IT sector only.
? This data is only useful for Latur branch.
? Small Saving Schemes
? If you are invested in small saving schemes then you get a fixed return on this but return is low. ? Small saving scheme are Risk –Free.
? Bonds and Deposits
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? ? ? ?
Low risk. Reasonable investment tenure. Nomination facility available. Cannot be traded in secondary market.
Mutual Fund
The reason that mutual funds are so popular is that they offer the ability to easily invest in increasingly more complicated financial markets. A large part of the success of mutual funds is also the advantages they offer in terms of diversification, professional management and liquidity.
?
Flexibility - Mutual Fund investments also offers you a lot of flexibility with features such as systematic investment plans, systematic withdrawal plans & dividend reinvestment. Affordability - They are available in units so this makes it very affordable. Because of the large corpus, even a small investor can benefit from its investment strategy. Liquidity - In open ended schemes, you have the option of withdrawing or redeeming your money at any point of time at the current NAV 55
?
?
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? ? ?
Diversification - Risk is lowered with Mutual Funds as they invest across different industries & stocks. Professional Management - Expert Fund Managers of the Mutual Fund analyse all options based on experience & research Potential of return -The fund managers who take care of your Mutual Fund have access to information and statistics from leading economists and analysts around the world. Because of this, they are in a better position than individual investors to identify opportunities for your investments to flourish. Low Costs - The benefits of scale in brokerage, custodial and other fees translate into lower costs for investors. Regulated for investor protection - The Mutual Funds sector is regulated to safeguard the investor's interests.
?
Your relationship managers will help you determine your investment profile, which will be based on your needs, possibilities and expectations. Your investment profile will help you choose the type of investments that suits you the best.
? Life Insurance Plan
? There are many schemes for life insurance
? In insurance plan tax benefit available to customers.
? Equities
? Efficiency Deals are completed instantaneously online. A purchased 56 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
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stock is added immediately to your portfolio and when you sell the cash is immediately available for reinvestment. ? Lower costs Charges are typically lower than at traditional stockbrokers. Most online brokers charge flat fees rather than percentages for both transactions and annual account fees. ? Transparency You can see the price at which you are buying and selling, and look at your portfolio online whenever you want to. ? Flexibility to deal online and by phone Dual access is important because you may not be in front of a computer when you want to trade, or the internet may be down.
? Company should give more attention on the brand promotion. Most of the person doesn’t know Bonanza Portfolio is brand. For that company should emphasis on the board display in public area like bus stop railway station etc. 57 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
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? Market should be segmented according to customer income; it will help to target the customer and to set the marketing strategy.
? To know the customer satisfaction, product performance and about service customer feedback is very necessary. For that company can do market research or can do it online.
Bibliography
58 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
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Financial Market A Beginners Module (Ref. Book of NSE Exam)
Websites:? www.Bonanzaoline.com ? www.hdfc.bank.com ? www.icici.bank.com ? www.statebankofindia.com
QUESTIONNAIRE
Sir /Madam,
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We are conducting financial survey to understand and find out the investment patterns being opted by retail investors. Our primary objective is to find out the best-opted investment pattern retail investors. There are short questions, which will act as tools to achieve primary motto of this survey: 1) Your Annual Income: A) Rs.1 Lac To 1.5 Lac C) Rs.2.5 Lac To 5 Lac E) Rs 7.5 Lac 10 Lac 2) Your Investment Portfolio: Sr.No. 1 2 3 4 5 6 7 8 9 10 11 12 Type Of Investment PPF NSC FIXED DEPOSIT POST OFFICE INSURANCE MUTUAL FUND SHARE PMS COMMODITIES BONDS HOUSING LOAN OTHER Current Investment Factor Future Expected Return B) Rs.1.5 Lac To 2.5 Lac D) Rs 5 Lac TO 7.5 Lac F) Above Rs 10 Lac.
3) Describe your investment nature? A) Weekly B) Quarterly B) Monthly D) Yearly 60 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
4) For What purpose you are interested to invest? A) Tax benefit C) Liquidity B) Retirement purpose D) Earn return
5) NAME:-……………………………………….Date Of Birth…./…./19… Profession:-……………………….. Organization…………………………. Ph:-(O)……………………(R)……………………… (M)……………………………E-mail:-…………………………………….
6) References:1)Mr./Mrs………………………………………Contact No……………... 2)Mr./Mrs………………………………………Contact No……………...
61 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
doc_704148735.doc
Investment Potential for Customer
Master of Business Administration
Introduction to the topic :
The survey was conducted for the study of investment potential for Bonanza Portfolio Ltd. In this survey with the help of designed questionnaire, I have interviewed the entire prospect customer’s from IT & Other sector. The technique used for interacting prospect customer was the face-to-face interview.
Reason for selecting the topic:
Financial sector is growing sector. Bonanza Portfolio Ltd is the financial service provider company. They provide various investment schemes for customer so I choose this topic. In this topic how people invest there fund at present and in future how they invest if they need a help for how to invest then I suggested to meet the Bonanza Portfolio Ltd FSC (Financial Service Consultant).
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Master of Business Administration
Objective of the Study
? To study & analysis how Customer’s invest there fund and what is expected rate of return on there investment. ? To find out how people are save there tax. ? To find our consumer preference towards Bonanza Portfolio Ltd ? To study the investment potential in Latur sector. ? To awareness about all the investment schemes to potential customers. ? To study awareness about Bonanza Portfolio Product & Service.
OBJECTIVE OF THE PROJECT
? To study & analysis how Customer’s invest there fund and what is expected rate of return on their investment. ? To find out how people are saving their tax. ? To find the consumers preference towards Bonanza Investments Pvt. Ltd
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Introduction about Investment
Investment is the sacrifice of certain present value for the uncertain future reward. It entitle arriving at numerous decisions such as type, mix, amount, timing, grade etc. of investment and disinvestment, further, such decisions making has not only to be continuous but rational too. Investment choices or decisions are found to be the outcome of three different but related classes of factors. The first may be described as factual or informational premises. The second class of factors entering into investment decisions may be described as expectation premises. The third and final class of factors may be described as valuational premises.
"Investment" or "investing", like "value" is a word of many interpretations.
There are basically three concepts of investment.
? Economic investment that is, an economist’s definition of investment. ? Investment in a more general or extended sense, which is used by "the man on the street”. ? The sense in which we are going to be very much interested, namely, financial investment.
The term economic investment has a rather precise meaning in the literature of economic theory. Typically it includes net additions to the capital stock of society. By 'capital stock of society' is meant those goods, which are used in the production of other goods. 3 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
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The everyday usage of the term investment can mean a variety of things, but to the man on the street it usually refers to a money commitment of some sort. For example, a commitment of money an "investment" from an individual's point of view. But these are so in very general and in much extended sense of the word since no rate of return is involved, nor is a financial return or capital growth expected.
Financial investment is a form of this general or extended sense of the term. It means an exchange of financial claims- stocks and bonds, real estate, mortgages etc. The term financial investment is often used by investors to differentiate between the pseudo investment concept of the consumer and the real investment of the businessman semantics aside, there is still a difference between an "investment" in a ticket on a horse and the construction of a new plant; between the forming of a watch & the planting of a field of corn. Some investments are simply transactions among people, others involve nature. The letters are "real" investments; the former are "financial" investments. Investment would imply the employment of funds with the objective of realizing additional income or growth in value of investment at a future date.
Type of Investment
? Short term investment ? Medium term investment Long term investment
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Short Term Investment
? There are some mutual fund in this no lock in period. ? Investment in share. ? Investment in Portfolio Management Service(PMS).
Medium Term Investment
? Post Office Monthly Income Scheme (MIS). ? Tax saving Bonds of ICICI and IDBI. ? Equity Linked Savings Schame of Mutul Funds(ELSS).
Long Term Investment
? Investment in House Property. ? Life Insurance Schemes. ? Investment in Portfolio Management Service(PMS). ? Investment in share.
Benefit of Investment
? Tax Benefit ? Long term Benefit
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Deduction available to Individuals/HUF The assessee can also claim the benefit of deductins for investments and other purposes as explained below. Sr. No. Nature of Particulars Amount deduction 1. Eligible Amounts invested / deposited / Upto Rs. 100,000 Investments / paid in :Each year Payments (80C) (a) National Saving Schemes / National Saving Certificate (b) Life Insurance premium (c) Contributed to Provident Fund / PPF (d) Reapayment of housing (e) Approved equity mutual funds (f) School / college tuition fees for children (g) Infrastructure bonds / equity shares, debenture or units of mutual funds approved by CBDT in this regard 2. Contribution to Amount to be deposited under a Upto Rs. 10,000 each year pension fund contract for any annuity plan of (80CCC) LIC or approved life insurance company. Amount allowed as deduction with bonus or interest is taxable in the year of receipt 3. Contribution to Amount contributed to pension Amount contributed upto pension funds by fund notified by the government 10% of salary Government for such persons. Amount Employees joining allowed as deduction together service on or after with bonus of interest is taxable 1.1.2004 (80CCD) in the year of receipt 4. Cap on Deduction Maximum Deduction u/s 80C, 80 (80CCE) CC & 80 CCD cannot exceed Rs. 100,000 5. Payment for Premium on health insurance Upto Rs. 10,000 each year medical insurance policies of self, spouse, Senior citizens may claim premium (80D) dependent parents or children or deduction upto Rs. 15,000 any member of HUF 6 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
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Following are the tax benefit are given by the Income Tax Act. 6. Expenses on Paid for treatment of self and Upto Rs. 50,000 a year medical treatment dependents suffering from for a person with (80 DDB) specified aliments. The assessee disability and Rs. 75,000 is required to furnish a for person with severe certificate from a specialist as disability. may be prescribed Expenses on Paid for treatment of self and Upto Rs. 60,000 for medical treatment dependents suffering from Senior Citizen and Rs. (80DDB) specified aliments. The assesee 40,000 for others is required to furnish a certificate from a specified as may be prescribed Payment of rent For payment of rent for self Last of following (80 GG) occupied residential premises. (i) Rs. 2,00 p.m. Available to salaried employees (ii) 25% of total incomes only if he does not receive (iii) Rent paid in excess HRA of 10% of income Donation (Sec. 80G) All assesses are allopwed deduction in respect of donations for charitable purpose to the extent of 50% of such donatins. If such aggregate donation is more than 10% of the gross total income, then such deduction will be restricted to 50% of 10% of such gross total income. In aqdditio to the above , donations for certain specified purposes or to funds i.e. Prime Miniters Relief fund etc. qualify for deduction equal to 100% of the donation made, without any limit of in relation of the total income being applied.
7.
8.
9.
EXEMPTED CAPITAL GAINS :Investment in house property :
Exemption of long – term Capital gain arising from the transfer of residential house property (sec. 54) is allowed if the amount of capital gain is utilized in purchase/ construction of another residential house, either within one year before the date of transfer or within two years of that date for outright purchase and three years for construction. 7 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
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Investment in specified bonds
Capital Gains arising from trasfer of any long term capital asser, is exempt to the extent of investment made within six months in- Bonds of National Bank for Agriculture and Rural Development (NABARD) issued on or after 01-04-2000; Bonds oNational Highway Authority of India (NHAI) issued on or after 01-04-2000;
Bonds of Rural Electrification Corporation (REC) issued on or after 01-04-2001 that are redeemable after three years;
Bonds of National Housing Bank (NHB) issued on or after 0104-2002 which are redeemable after three years;
Bonds of Small Industries Development Bank of India (SIDBI) issued on or after 01-04-2002 that are redeemable after three years.
The exemption will be withdrawn if the bonds are transferred or converted into money or any loan is taken against the securityof the bond within 3 years from the date or acquisition of the bond. In that case the anount exempted earlier will become taxable in the year in which the bonds are transferred.
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In case of long – term capital gains on capital assets other than house property, exemption is allowed if the net sale consideration is utilized in the purchase/ construction
of a residential house either within a year before the date of transfer or within two years of that date for outright purchase or three years for construction provided the assessee does not own more than one house property on the date of transfer.
INCOME FROM OTHER SOURCES
This is a residual head covering income such as Winning from lotteries, interest, etc. Deduction for expenditure (not of the nature of capital expenditure) is allowed which is laid out or expended wholly and exclusively for the purpose of making or earning such income. Your tax – saving ‘quick checklist’ Investment Scheme Investment Tax savings * NSC/ PPF/ ELSS/ ICICI 100,000 IDBI Infrastructure Bonds ICICI Prudential Life 10,000 3,300 Maximum 33,660
Insurance pension plans Mediclaim policy 10,000 3,300
Company Vision
? To be the premier provider of investment advisory and financial planning services in India ? To be a leading investment intermediary for transactions through both online and offline medium 9 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
Company History
Bonanza Portfolio was founded by a group of professionals in 1995, a seemingly distant past in the Internet age. Our meticulous research was published and distributed in printed form to a client base comprising the who's who of Indian business including leading MNCs, investment banks and consulting firms. The quality of research was highly acclaimed and soon became the industry benchmark. Over the last few years, our research coverage has grown to cover practically all companies, sectors, economy and financial markets. The breadth and depth of our content is unmatched - stock markets, mutual funds, personal finance, taxation and economy.
Enter - the Internet
We saw an opportunity to expand our client base, from a few hundreds to several millions and also to complete the value chain. In early 1999, when Internet penetration in India was at its infancy and the future unknown, we took the hard decision of killing our earlier business model and embracing the Internet. We discontinued delivery of reports in printed form and made available quality research at the click of a mouse. Thus, was born www.Bonanzaonline.com. The site has emerged as the most popular website on Indian business and finance. A publication, no less than Forbes has chosen us in their ‘Best of the Web’ under the Asian Investing category. Its no surprise that Bonanza Portfolio is the
one and only Indian website to make it to the exalted list. To quote Forbes - "… a must read for investors in South Asia"
10 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
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Company Work Method
We follow a simple approach to research as follows: ? Data collection ? Analysis ? Communication ? Feedback All our analysts have significant experience, which they share with each other. We believe we have discovered fairly innovative sources of data, that helps to keep ahead to identify trends. Experience and rapport with the Indian corporate world, built up over the years is also a great help.It would be unfair on our part not to mention the immense contribution, which our clients and readers have made. Their feedback forms the QC as well as R&D for us. The feedback helps us in all stages- data collection, analysis and communication. More importantly, in improving our methodology as well. Drop us a line, right away, giving us your feedback. Our research team comes out with regular, specialized reports in strategic sectors. These are priced reports that receive tremendous response. We have serviced clients like Mckinsey and Co, Ernst and Young, Compaq, Saint Gobain, Citibank, Hindustan Lever Limited (Subsidiary of Unilever Plc) and Star TV to name a few. We also undertake customized research in all sectors according to the specific needs of the clients.
Completing the Chain
11 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
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We forayed into investment transaction space in early 2000 to complete the value chain. We offer E-broking services and door to door service to investors for a gamut of products ranging from Mutual Funds, GoI Securities to Fixed Deposits and Insurance. While our strong base of offline customers gives us a headstart, we continue to pioneer online offerings of these services. We were the first company in India to sell Mutual Funds online.
Investor Points - A Human Touch
We have an well-entrenched physical network of 75 Investor Points. At these Investor Points, customers can see our human face and get service unparalleled in India. The Investor Points also help educate investors and aid financial transactions in smaller towns with the use of computers and the Internet. We also provide clients with financial planning and taxation advisory services to ensure that they get the maximum out of their hard-earned money. Apart from our acclaimed research capabilities, we have a group of trained and professionally qualified Financial Advisors to cater to the requirements of our clients.
Company Management Team
Mr. Nirmal Jain
Nirmal Jain is the founder and Chairman of Bonanza Portfolio Ltd . He holds an MBA degree from IIM Ahmedabad, and is a Chartered Accountant (All India Rank 2) and a Cost Accountant. He has had an impeccable professional and academic track record. He started his career in 1989 with Hindustan Lever Limited. During his stint with Hindustan Lever, he handled a variety of responsibilities, including exports and trading in agro- commodities with Rs3bn annual turnover. He then joined hands with two local brokers to set up their 12 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
equity research division, Inquire, in 1994. His work set new standards for equity research in India. In 1995, he founded his own independent financial research company, now known as Bonanza Portfolio Ltd .
Mr. R Venkataraman
R Venkataraman is the co-promoter and Executive Director of Bonanza Portfolio Ltd . He holds a B. Tech degree in Electronics and Electrical Communications Engineering from IIT Kharagpur and an MBA degree from IIM Bangalore. He has held senior managerial positions in various divisions of ICICI Limited, including ICICI Securities Limited, their investment banking joint venture with J P Morgan of USA and with BZW and Taib Capital Corporation Limited. He has also held the position of Assistant Vice President with G E Capital Services India Limited in their private equity division. He has varied experience of more than 14 years in the financial services sector.
The Board of Directors
Apart from Nirmal Jain and R Venkataraman, the Board of Directors of Bonanza Portfolio comprises:
Mr Sat Pal Khattar (Non Executive Director)
Mr Sat Pal Khattar joined the Board with effect from April 20, 2001. Mr Sat Pal Khattar is a lawyer by profession He was the founding partner of a firm of solicitors in Singapore named KhattarWong and at present is a Consultant in the said firm. He is also a director of a number of public companies in Singapore and India. He is the Chairman of 'Network 13 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
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India', a body sponsored by the Government of Singapore, which promotes two-way business contacts between Singapore and Indian business interests.
Mr Sanjiv Ahuja (Independent Director)
Mr Sanjiv Ahuja joined the Board with effect from August 28, 2002. Mr Ahuja graduated from National University of Singapore with a degree in Computer Science and is also a Certified Public Accountant. He started his career in 1988 with Accenture (formerly Andersen Consulting) and has worked on several large projects particularly in the electronics and utilities industries. He joined the Thakral Group of Companies in 1991 as the Chief Executive of their electronics packaging and Warehousing company in Singapore and has also headed the group's Indian Investments division. He started his own investment advisory and consulting company in 2001, named Centennial Management Consultants Private Limited, focusing on investment mediation and investment management and advice. At present, he is also an Executive Director with Corporate Brokers International Private Limited, a reputed Singapore based mergers and acquisitions firm focusing on the SME space and also a board member of the Singapore Indian Chamber of Commerce and Industry, a post he has held since 2002. He is very familiar with the South Asian and South East Asian Markets and has direct investment experience in a variety of industries including real estate development, distribution and information technology. Mr Ahuja has an experience of more than 17 years.
Mr Nilesh Vikamsey (Independent Director)
14 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
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Mr Nilesh Shivji Vikamsey joined the Board with effect from February 11, 2005. Mr Vikamsey qualified as a Chartered Accountant in 1985 and has been a member of the Institute of Chartered Accountants of India since 1985. He has a Diploma in Information System Audit ("DISA") from the Institute of Chartered Accountants of India in 2003. In 1985, Mr Vikamsey was inducted as partner in M/s Khimji Kunverji & Co., Chartered Accountants and was in charge of the audit department till 1990 and thereafter also handles assignments related to financial services, consultancy, investigations, mergers and acquisitions, valuations etc. Mr Vikamsey is a director of Alpha Garments Private Limited, English Apparels Private Limited, HLB Technologies (Mumbai) Private Limited, Miloni Consultants Private Limited & Chairman of HLB India. Mr Vikamsey is a member of the Accounting Standards Board and erstwhile Member of the Vision & Restructuring Commitee of Institute of Chartered Accountants of India and member of Expert Committees of Law and Company Affairs, Infotainment & Media and Economic & Business Reforms formed by the Indian Merchants' Chamber.
Mr Kranti Sinha (Independent Director)
Mr Kranti Sinha joined the Board with effect from January 27, 2005. Mr Sinha graduated from the Agra University with a Masters degree. He started his career in 1965 as a direct recruit Class I officer with Life Insurance Corporation of India and has worked in various capacities and at different locations throughout the country. He worked at various managerial levels and rose through the hierarchy to serve as the Director and Chief Executive of LIC Housing Finance Limited from August 1998 to December 2002 and concurrently as the Managing Director of LICHFL Care Homes (a wholly owned 15 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
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subsidiary of LIC Housing Finance Limited). He retired from the permanent cadre of the Executive Director of LIC. He has also served as the Deputy President of the Governing Council of Insurance Institute of India and as a member of the Governing Council of National Insurance Academy, Pune apart from various other such bodies. He is currently the Managing Director of The Global Institute for Financial and Education Services (India) Private Limited (a wholly owned subsidiary of The Global Institute, LLC, USA). Mr Sinha is also on the Board of Directors of Hindustan Motors Limited, Larsen & Toubro Limited & LICHFL Care Homes Limited.
Bonanza Portfolio Ltd
Bonanza Portfolio Ltd is listed on both the leading stock exchanges in India, viz. the
Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE). The Bonanza Portfolio group, comprising the holding company, Bonanza Portfolio Ltd and its
subsidiaries, straddles the entire financial services space with offerings ranging from Equity research, Equities and derivatives trading, Commodities trading, Portfolio Management Services, Mutual Funds, Life Insurance, Fixed deposits, GoI bonds and other small savings instruments to loan products and Investment banking. Bonanza Portfolio also owns and manages the websites, www.bonanzaonline.com and www.5paisa.com .
16 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
For the nine months ended December 31, 2005, Bonanza Portfolio Ltd
had a total income
of Rs 1323.40 Mn up 179% for the same period for the previous year with a PAT of Rs 324.00 Mn, which is a growth of 146% for the same period for the previous year.
Bonanza Portfolio Ltd , being a listed entity, is regulated by SEBI (Securities and Exchange Board of India). It undertakes equities research which is acknowledged by none other than Forbes as 'Best of the Web' and '…a must read for investors in Asia'. Bonanza Portfolio 's research is available not just over the internet but also on international wire services like Bloomberg (Code: IILL), Thomson First Call and Internet Securities where it is amongst the most read Indian brokers. Its various subsidiaries are in different lines of business and hence are governed by different regulators. The subsidiaries of Bonanza Portfolio Ltd are:
Bonanza Portfolio Pvt Ltd
Bonanza Portfolio Pvt Ltd is a 100% subsidiary of Bonanza Portfolio Ltd , which is
engaged in the businesses of Equities broking and Portfolio Management Services. It holds memberships of both the leading stock exchanges of India viz. the Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE). It offers broking services in the Cash and Derivatives segments of the NSE as well as the Cash segment of the BSE. A SEBI authorized Portfolio Manager, it offers Portfolio Management Services to clients. These services are offered to clients as different schemes, which are based on differing investment strategies made to reflect the varied risk-return preferences of clients. 17 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
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Bonanza Portfolio Commodities Pvt Ltd
Bonanza Portfolio Commodities Pvt Ltd is a 100% subsidiary of Bonanza Portfolio
Ltd, which is engaged in the business of commodities broking. It holds memberships of both the leading Commodity exchanges in India viz. the Multi-Commodities Exchange (MCX) and the National Commodity and Derivatives Exchange, India (NCDEX).
Bonanza Portfolio Distribution Co Ltd
Bonanza Portfolio Distribution Co Ltd is a 100% subsidiary of Bonanza Portfolio Ltd
and is engaged in the business of distribution of Mutual Funds, IPOs, Fixed Deposits and other small savings products. It is one of the largest 'vendor-independent' distribution houses and has a wide pan-India footprint of over 150 branches coupled with a huge number of 'feet-on-street', which help source and service customers across the length and breadth of India. Its unique value proposition of free doorstep expert advice coupled with free pick-up and delivery of cheques has been met with an enthusiastic response from customers and fund houses alike.
Bonanza Portfolio Insurance Services Ltd
Bonanza Portfolio Insurance Services Ltd is also a 100% subsidiary of Bonanza
Portfolio Ltd and is a registered Corporate Agent with the Insurance Regulatory and Development Authority (IRDA). It is the largest Corporate Agent for ICICI Prudential Life Insurance Co Ltd, which is India's largest private Life Insurance Company.
18 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
Bonanza Portfolio Insurance Brokers Ltd
Bonanza Portfolio Insurance Brokers Ltd is a 100% subsidiary of Bonanza Portfolio
Ltd and is a newly formed subsidiary which will carry out the business of Insurance broking. We have applied to IRDA for the insurance broking licence and the clearance for the same is awaited.
Bonanza Portfolio Investment Services Ltd
Bonanza Portfolio Investment Service Ltd is also a 100% subsidiary of Bonanza
Portfolio Ltd . It has an NBFC licence from the Reserve Bank of India (RBI) and offers margin-funding facility to the broking customers.
Company Portfolio of offerings
19 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
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C o m m o ditie s
In fo rm a tio n & A d v ic e
E q u itie s
In s ur a n c e
M u tu a F u n d l
F ix e d In c o m e pr o d u c ts
E x e c u tio n & S e rv ic e
Investment Schemes available for customer from Bonanza Portfolio Ltd
Small Saving Schemes
20 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
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Administered through Post Office, these are ideal for small investors looking for fixed return with high safety. A number of schemes with varying tax treatment,monthly income option,and carrot of bonus too.No TDS’ is the tempting sweetener.
Post office monthly Income Scheme
Who can invest Returns Return Periodicity Min.amount Max.amount Individuals 8%p.a.plus 10%bonus on maturity (yield9.32%) Monthly Rs.6,000 Rs.300,000in single account and Rs.600,000in joint account. Period Minimum lock-in-period Risk Issuer Tax benefits Liquidity Special Features 6 years 3 years Risk-Free GoI through post Office No TDS Can be withdrawn after 3 years Account is transferable to any Post Office
9%Senior Citizens Schemes
Who can invest Returns Tilak Maharashtra University Individuals 9%p.a. 21 New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
Return Periodicity Min.amount Max.amount Lock-in-period Extension flexibility Risk Issuer 5years
Quarterly Rs.1, 000 Rs.1, 500,000
3years Risk-Free GoI through post Office and Nationalized Banks.
Tax benefits Liquidity
No Tax benefit Premature withdrawal after a period of one year will be allowed, subject to some deductions.
Nomination Age Criteria
Yes Citizens of 60years of age and above are eligible to invest.
Additional benefits
Citizens who retired under a voluntary or a special voluntary retirement scheme and have attained the age of 55 years are also eligible, subject to specified conditions.
Public provident Fund
Who can invest Returns Tilak Maharashtra University Individuals and Hindu Undivided Family 8%p.a.computed on monthly balance. 22 New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
Return Periodicity Min.amount Max.amount Lock-in-period Extension flexibility Risk Issuer Tax benefits Liquidity
Returns will be credited annually. Rs.500 Rs.70,000 15years Yes. This can be done in a block of 5years at a time. Risk-Free Government of India Deduction u/s80 C.Intrest tax free under Section 10. No withdrawals till6years.
One withdrawal thereafter per year. Nomination Though account can be opened in minor’s name,anyone except a minor can be a nominee. Additional benefits Additional information No court attachment. Available only at designated branches of certain Nationalized banks and Post Office.
National Savings Certificates
Who can invest Returns Tilak Maharashtra University Anybody 8%p.a.compounded. 23 New Satara College of Engg. & Mgmt, Pandharpur
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Lock Periodicity Min.amount Max.amount
On maturity after 6years Rs.100 No upper limit.
Period Minimum lock-in-period Security/Risk Issuer Tax benefits
6 years Entire tenure None GoI through post Office Deduction u/s80C.Interest is also eligible under section 80C. No TDS If money is invested in minor’s name then section 80C benefit can’t be availed.
Liquidity Special Features
Can be withdrawn after 3 years Account is transferable to any Post Office.
Unit Link Insurance Plan (ULIP)
Who can invest Individuals between 12and 55years. 24 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
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Returns Return Periodicity Min.amount Max.amount Lock-in-period
Variable returns in terms of dividend&NAV. Divident is usually snnual (If declared). Rs.15,000 Rs.200,000 10or15years as per the plan.Premature withdrawal possible after 3years.
Risk Issuer Tax benefits
Medium risk Unit Trust of India Deduction u/s80 CIncome is tax free under Section 10(10D).
Liquidity Additional benefits
Highly liquid.Weekly NAV based Sale/Purchases. Life Insurance covere upto taget amount subject to a maximum of Rs.200,000.Accident insurance cover upto Rs.50,000.
BONDS & DEPOSITS
25 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
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RBI bonds for supreme safety with sovereign guarantee. ICICI/IDBI bonds will save tax if you are not in high-income bracket.Capital Gain bonds,a cool way to escape long-term capital gain tax on property etc.Company Fixed Deposits were earlier a popular investment option which are now losing their charm owing to taxable interest income coupld with questionable credit worthiness of some companies.
ICICI Safety Bonds/IDBI Flexi bonds-Tax saving Bond
Who can invest Returns Min.amount Max.amount Period Risk Issuer Tax benefits Liquidity
Anybody Fixed, depending on the issue. Rs.5, 000 Rs.100, 000to avail of Section 80C benefit. 3years AAA rated but moderate risk ICICI Bank/IDBI Deduction u/s80C Poor due to lock-in for 3 years.
FIXED DEPOSIT
Fixed Doposits (Manufacturing Cos) 26 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
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Who can invest Returns Return periodicity Min.amount Max.amount Min.and Max. period Lock in period Issuer Tax benefits Liquidity
Individuals and bodies Intrest on deposits. On maturity of the deposits. Rs.5, 000 NO upper limit. 6month and 3 years. Till maturity. Manufacturing companies. No TDS if intrest is upto Rs2,500p.a. Low-Moderate.
MUTUAL FUNDS
27 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
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Instead of investing on your own, for a small fee, a set of experts do it for you though mutual fund schame.You can close the risk profile and asset mix.Liquid for low return instant liquidity, Debt /income for fixed income assets and a host of equity funds for highrisk high-reward investing.
About Mutual Funds Mutual Funds pool money of various investors to purchase a wide variety of securities while pursuing a specific goal. Selection of Securities for the purpose is done by specialists from the field. Returns generated are distributed to the Investors. Mutual Fund Companies offer various schemes. Investors can choose any particular Fund/Scheme or mix of Funds/Schemes depending upon their perception towards risk. Investment is done on the basis of prevailing Net Asset Values of various schemes.
Mutual Funds Investments are subject to Market Risks.
Mutual Funds – Growth/Equity Funds
28 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
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What ere these
These are funds where the investment objective is to generate long-term capital appreciation.
Who can invest Suitable for whom
Anybody Young investors and people who can take high risk.
Returns
Market linked. Reflected by Net Asset value (NAV) Investment Patterns Typically 90% in Equity and 10%in cash or Money market instruments/Debts.
Min. & Max. amount
Minimum amount is usually Rs 1,000 in most funds. Some may have higher amount.
Period Risk Issuer Tax benefits Liquidity
Some funds may have lock in period. High. Various Asset Management Companies. Dividend is tax-free. Highly Liquid. In case of open-ended funds, the AMC will provide liquidity. In case of close-ended funds, they can be traded on the stock markets.
Equity Linked Savings Scheme of Mutual Funds (ELSS)
29 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
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Who can invest Returns Return periodicity Min. & Max. amount What in Period Lock are these Risk Who can invest Issuer Suitable for Whom Tax benefits Returns Liquidity Investment patterns
Individuals and HUF Variable, both in terms of dividend & NAV Dividends are usually annual. After 3 years it can be sol at prevailing NAVs Rs. 500. No upper limit These are closed – ended debt funds 3years where the investment objectives is to generate safe andNAV depends on market investments Very high as fixed returns. Anybody Asser Management Companies Various For Investors who want safe and stable returns Deduction u/s 80C. Income is tax-free u/s10 4-6%. Typically reflected by Net Asset sale/purchase is Liquidity only after three years where Value (NAV)NAV based on Typically 100% in government securities. Sone have a mix of around 25-30% in equity and 75-70% in government securities
Min & Max amount Minimum amount is usually Rs. 10,000 in most funds. Some may have higher amount Period Typically from 6 months to 5 years. The funds are locked-in for the entire duration . Risk Low Issuer Tax benefits Liquidity Various Asset Management Companies None
Fixed Maturity Plan (FMP)
30
Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur Since these are closed-ended funds, Returns are available only at the end of the tenure
Master of Business Administration
LIFE INSURANCE SCHEMES
31 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
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Insure your life, plan for a financially secure future for your family and get attractive tax breaks along the way. All this is possible with a single class of products, Life Insurance. Get adequate life cover coupled with total peace of mind.
Save’n’Protect
What are these Who can invest Suitable for whom Min & Max sum insured Min & Max Entry age Max cover ceasing age Period Liquidity Endowment Plan for Life Insurance Individuals For people who are looking for insurance protection + moderate returns on their investment Rs. 50,000. No upper limit 0 to 60 years 70 years Fixed term plan for 10 to 30 years One can get surrender value if policy is terminated after 3 years. If terminated before 3 years no surrender value is given. Deduction under section 80C. All maturity proceeds tax-free under section 10 (10D) Accident and disability rider, critical illness benefit rider Other benefits 5 years extended life cover for 50% sum assured after maturity of policy . Loan available against paid up value of the policy.
Tax benefits Add-on benefits available
Cash Bak
32 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
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What are these
Anticipated Insurance Individuals
Endowment
Plan
for
Life
Who can invest Suitable for whom
For people who are looking for insurance protection + liquidity (period return ) on their investment Rs. 75,000. No upper limit 16 to 55 years 70 years Fixed term plan for 15 to 20 years
Min & Max sum insured Min & Max Entry age Max cover ceasing age Period
Liquidity
Survival benefit paid in regular intervals at the end of 3,6,9,1215 years or 4,8,12,16,20years depending on the plan.
Tax benefits
Deduction under section 80C. All Maturity proceed tax-free under section 10 (10D)
Add-on benefits available
Accident and disability rider, critical illness benefit
Life Guard
33 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
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What are these Who can invest Suitable for whom
Term Insurance Plan Individuals For people who are looking for Insurance as a pure risk cover . Sum Assured subject to minimum premium upto Rs.2,400. Max upto Rs. 1,000,000 18 to 55 years 65years One can get surrender value if policy is terminated after 3 years only in case of Lifeguard Return of Premium (ROP). If terminated before 3 years no surrender value is given in case of the Lifeguad Single Premium (SP) and LifeGuard Level Term Assurance . Deduction under section 80C.
Min & Max sum insured
Min & Max Entry age Max cover ceasing age Liquidity
Tax benefits Sum Assured as chosen . Death benefits Add-On benefits available Accident and disability benefit riders only for regular premium plan. Not available for LifeGuard Single Premium
34 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
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Life Time Pension II
What are these Regular prmium linked deferred Pension Plan. Individuals For people who are looking for regular pension + risk cover during working years. Minimum 10,000. premium amount of Rs.
Who can invest Suitable for whom
Min & Max sum insured
18 to 60 years Min & Max Entry age Liquidity No withdrawal before 3 years and full withdrawal anytime after 3rd year. No partial withdrawal allowed.
Tax benefits
Deduction under section 80CCC upto Rs. 10,000. Commuted pension tax-free.
Other benefits
Option to choose between Pension Maximiser II, Pension Balancer II, Pension Protector II and Pension Preserver funds and also option to switch between them. 4 free switched in a policy years. Power to choose your retirement date. Top-up minimum Rs. 5,000
35 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
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Smart Kid
(Unit Linked Regular premium)
What are these Who can invest
Child Plans Parents in the age of 20-60 having children in the age group of 0-15 years.
Suitable for whom
For people who are looking to secure their child’s education . Minimum premium amount of Rs. 18,000. Max. amount is umlimited. Maximum of 5 with drawals any time after completion of 5 years. Deduction under section 80C. All maturity proceeds tax-free under section 10 (10D).
Min & Max amount
Liquidity
Tax benefits
Periodic pay-outs at regular intervals. Other benefits Additional rider benefits of Income Benefits Rider and Accident and Disability Benefit Rider . Option to take a premium holiday. Option to contribution increase/decrease annual
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EQUITIES
Over longer term, equities have yeilded highest returns, provided you have ability to pick up good stocks and hold them for a longer term. The Bonanza Portfolio team will help you with their research, advisory support.
There are two options while investing in shares of Companies; subscribing to share during an IPO (Primary maker) and trading in listed shares of Companies in the Secondary maker. For the latter option. 5paisa has an amazing product, which will enable you to Buy and Sell shares over the Internet, faster that you can blink.
You can also invest online in all the latest IOPs by simply logging on tohttp://www.indiainfoline.com. Investing in IPOs in now just a click away. In just three simple steps, you can transact in the latest IPOs: 1. 2. Logon, Key-in the quantity and specify your price or bid at cut-off, and 3. Transfer the required amount using your Online banking account with ICICI Bank or HDFC Bank.
37 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
Facility by Bonanza Portfolio a. Bonanza Portfolio is the only one offering you the facility to transfer money online for transacting in IPOs from multiple banks. Currently you can transfer funds from ICICI Bank and HDFC Bank. Soon this list will expand to cover much more number of banks. b. Transacting online in IPOs is completely safe, only it doesn't involve filling up endless froms and marking several signatures and is much more convenient.
38 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
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Listed Shares of Companies in the Secondary Market
Who can invest Returns When will I get the Returns
Anybody other than trusts. Variable returns both in terms od dividend as well as capital appreciation. Dividends are usually annual. Gain/Loss realized as and when the shares are sold. No lock in period . These can be freely bought and sold in stock exchanges through regisrered brokers . None
Min lock in period
Security Limited Companies Issuer Tax Benifits Profit are taxed as long term or short term capital gains. Long term capital gaind are tax-free if shares are traded on the stock exchange and short term capital gains on listed securities are taxable @ 10%. High-risk Risk High. Liquidity
PORTFOLIO MANAGEMENT SERVICE
39 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
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When it comes to managing your hard-earned money, leave it to the experts. With a little help from us, your portfolio can consistently earn market - beating returns. Choose from growth and momentum schemes.
Who can invest Returns Return periodicity Min and Max amount Min Period
Individuals and bodies Market linked but backed by our experience in the stock markets. Appreciation based on increasing NAV of portfolio. Rs. 500,000. No upper limit. There is no specified minimum period, we recommend keeping your portfolio invested for atleast one year. There is no cap on the maximum period. None Bonanza Portfolio Securities Pvt. Ltd. Profits are taxed as long term or short term capital gains. Long term capital gains are tax - free if shares are traded on the stock exchange and short term capital gain on listed securities are taxable @ 10%
Max. Period Locked in period Portfolio Manager Tax benefits
Risk
Moderate to high depending on the scrips in the portfolio. You can withdraw your portfolio whenever you choose.
Liquidity
Investments:40 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
The Money we earn is partly spent & the rest saved for meeting future expenses. Instead of keeping the saving idle we may like to use saving in order to get return onit in the future. This is called as Investment Investment means “Sacrificing today some money to get more earning in future or at tomorrow”. When person sacrifice money for the motive of earn something more at that time that is the investment. Then there whatever the avenue / instrument. E.g. ? When person betting on Indian Cricket match ? When any person purchases a Lottery ? Any person saves his money on his Saving A/c ? Or any person purchase share from share market Above all are the examples of investments. There are the following reason due to which any person invest his money that are
? Earn return on idle resources ? Generate a specified sum of money for a specific goal in life ? Make a provision for an uncertain future.
Portfolio
ortfolio is a combination of different investment assets mixed & matched for the purpose of achieving an investor’s goals. Items that are considered a part of our portfolio can include any asset which we own from shares, debentures, bonds, mutual funds units to items such as gold, art and even real estate etc. However, for most investors a portfolio has com to signify an investment in financial instruments like Shares, debentures, fixed deposits, mutual fund units & other investment avenues.Methodology of Project
41 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
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Project methodology is a process of collecting the information and helps to find out solutions to topic selecting. Following are the various techniques used for collecting of data: • • • • • • Field work Observation Interview Questionnaire Interactive Sessions with Investors Internet
Primary Data Collection
All the information is collected by on fieldwork experience under guidance of Mr. Ravi Pratap, financial service consultant (team leader), Bonanza Portfolio. I have chosen the questionnaire, observation and fieldwork methods because this is considered as one of the best and assisting methods for collecting information.
Secondary Data Collection
Theory information about Bonanza Portfolio products are collected from investors hand book of Bonanza Portfolio I have also collected information from web site of the company and other information from other web site these are given in bibliography.
42 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
Type of project:
The type of research, which is used in this survey, is Descriptive research. Descriptive research include survey and fact finding inquiries of the different kid. It attempts to determine the frequency with which something occurs or the relationship between two phenomenon’s. The main purpose of descriptive research is the description of the state of affairs, as it exists at present. In this researcher has no control over the variable. The survey method help in measuring the magnitude like opinion, awareness etc. Which are essential to describe the phenomenon.
43 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
1) Data of annual income
Annual Income Range Rs.1.5 Lac To 2.5 Lac Rs.2.5 Lac To 5 Lac Rs 5 Lac TO 7.5 Lac Rs 7.5 Lac 10 Lac Above Rs 10 Lac.
NO. Of Person 13 37 30 12 8
8 12
13
Rs.1.5 Lac To 2.5 Lac Rs.2.5 Lac To 5 Lac Rs 5 Lac TO 7.5 Lac Rs 7.5 Lac 10 Lac 37 30 A bove Rs 10 Lac.
? The above data shows that 37 people are ? 30 people are Rs 5 Lac TO 7.5 Lac range. ? 13 people are Rs.1.5 Lac To 2.5 Lac range. ? 12 people are Rs 7.5 Lac 10 Lac range. ? 8 people are Above Rs 10 Lac. Range.
Rs.2.5 Lac To 5 Lac range.
44 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
2)Data of how to invest in a current situation.
Type Of Investment PPF NSC FIXED DEPOSIT POST OFFICE INSURANCE MUTUAL FUND SHARE PMS COMMODITIES BONDS HOUSING LOAN No. Of Person Invest 5 2 12 2 37 45 50 2 2 13 55
25%
2% 5% 1% 1% 16%
PPF NSC FIXED DEPOSIT POST OFFICE INSURANCE MUTUAL FUND
6% 1% 1% 22% 20%
SHARE PMS COMMODITIES BONDS HOUSING LOAN
? The above data of how to invest people there fund in current situation. The above data also 100 people but many of people invest there fund in one or more scheme so the no of person is more. So I make a pie chart in a percentage. 45 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
3) How people are taking a risk.
Type Of Risk High Risk Medium Risk Low Risk
No. Of Person 25 60 15
15 25
High Risk Medium Risk Low Risk
60
? The above chart shows that how to take risk by people. On the basis of investment factor. ? In this 60 person are taking a medium risk. ? 25 Person are taking a high risk. ? 15 Person are taking a low risk.
46 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
4) In insurance which policy people invest there fund.
Insurance Policy Type For Kids For Life For Pension
No. of Person 30 40 30
For Kids For Life For Pension
? The above chart shows that how to in insurance which policy people invest there fund.
? In this 30 person are taking for a children’s policy. ? 40 Person are taking a life insurance policy. 47 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
? 30 Person are taking a pension policy.
5) Data of how to invest in a future situation.
Type Of Investment PPF NSC FIXED DEPOSIT POST OFFICE INSURANCE MUTUAL FUND SHARE PMS COMMODITIES BONDS HOUSING LOAN No. Of Person Invest 5 2 12 2 37 45 50 2 2 13 55
48 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
1% 1% 5% 21% 1% PPF NSC FIXED DEPOSIT POST OFFICE INSURANCE MUTUAL FUND SHARE PMS COMMODITIES BONDS HOUSING LOAN
18%
4% 3% 5% 19%
22%
? The above data of how to invest people there fund in future situation. The above data also 100 people but many of people invest there fund in one or more scheme so the no of person is more. So I make a pie chart in a percentage. ? Now in a future investment many people are taking a high risk. So the market will be a potential for investment. ? Many people are invest for the tax benefit also.
49 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
6)Data of investment nature.
Investment Nature Weekly Monthly Quarterly Yearly
10 5
N
f.Person 5 65 20 1020
Weekly Monthly Quarterly Yearly 65
50
Tilak Maharashtra University
New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
? The above data shows that in which nature people are invest there money in the various schames. ? 5 Person are invest there money in weekly nature. ? 65 Person are invest there money in monthly nature. ? 20 Person are invest there money in quarterly nature. ? 10 Person are invest there money in Yearly nature.
7) For What purpose people are interested to invest?
Purpose of Invest Tax benefit Liquidity Earn return Retirement purpose No. of Person 30 20 30 20
51 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
Tax benefit Liquidity Earn return Retirement purpose
? The above data of purpose of investment. ? 30 Person are investing for tax benefit. ? 20 Person are investing for liquidity benefit. ? 30 Person are investing for earn return on investment. ? 20 Person are investing for retirement purpose.
Conclusion
On the basis of study it can easily concluded that the brand name of Bonanza Portfolio is not very popular, but the service provided by the Bonanza Portfolio can be number one brand in future.
52 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
Product of the Bonanza Portfolio is good for higher and lower investor, and it is a leading player in the market. It has the strength of experience, technology, accessibility, knowledge, and skilled manpower. That provides it the opportunity to be the number one market player.
Limitation of this project was like
:
? Time limitation for marketing research.
53 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
? Segment is not define
? Finding data is related to IT sector only.
? This data is only useful for Latur branch.
? Small Saving Schemes
? If you are invested in small saving schemes then you get a fixed return on this but return is low. ? Small saving scheme are Risk –Free.
? Bonds and Deposits
54 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
? ? ? ?
Low risk. Reasonable investment tenure. Nomination facility available. Cannot be traded in secondary market.
Mutual Fund
The reason that mutual funds are so popular is that they offer the ability to easily invest in increasingly more complicated financial markets. A large part of the success of mutual funds is also the advantages they offer in terms of diversification, professional management and liquidity.
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Flexibility - Mutual Fund investments also offers you a lot of flexibility with features such as systematic investment plans, systematic withdrawal plans & dividend reinvestment. Affordability - They are available in units so this makes it very affordable. Because of the large corpus, even a small investor can benefit from its investment strategy. Liquidity - In open ended schemes, you have the option of withdrawing or redeeming your money at any point of time at the current NAV 55
?
?
Tilak Maharashtra University
New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
? ? ?
Diversification - Risk is lowered with Mutual Funds as they invest across different industries & stocks. Professional Management - Expert Fund Managers of the Mutual Fund analyse all options based on experience & research Potential of return -The fund managers who take care of your Mutual Fund have access to information and statistics from leading economists and analysts around the world. Because of this, they are in a better position than individual investors to identify opportunities for your investments to flourish. Low Costs - The benefits of scale in brokerage, custodial and other fees translate into lower costs for investors. Regulated for investor protection - The Mutual Funds sector is regulated to safeguard the investor's interests.
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Your relationship managers will help you determine your investment profile, which will be based on your needs, possibilities and expectations. Your investment profile will help you choose the type of investments that suits you the best.
? Life Insurance Plan
? There are many schemes for life insurance
? In insurance plan tax benefit available to customers.
? Equities
? Efficiency Deals are completed instantaneously online. A purchased 56 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
stock is added immediately to your portfolio and when you sell the cash is immediately available for reinvestment. ? Lower costs Charges are typically lower than at traditional stockbrokers. Most online brokers charge flat fees rather than percentages for both transactions and annual account fees. ? Transparency You can see the price at which you are buying and selling, and look at your portfolio online whenever you want to. ? Flexibility to deal online and by phone Dual access is important because you may not be in front of a computer when you want to trade, or the internet may be down.
? Company should give more attention on the brand promotion. Most of the person doesn’t know Bonanza Portfolio is brand. For that company should emphasis on the board display in public area like bus stop railway station etc. 57 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
? Market should be segmented according to customer income; it will help to target the customer and to set the marketing strategy.
? To know the customer satisfaction, product performance and about service customer feedback is very necessary. For that company can do market research or can do it online.
Bibliography
58 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
Financial Market A Beginners Module (Ref. Book of NSE Exam)
Websites:? www.Bonanzaoline.com ? www.hdfc.bank.com ? www.icici.bank.com ? www.statebankofindia.com
QUESTIONNAIRE
Sir /Madam,
59 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
We are conducting financial survey to understand and find out the investment patterns being opted by retail investors. Our primary objective is to find out the best-opted investment pattern retail investors. There are short questions, which will act as tools to achieve primary motto of this survey: 1) Your Annual Income: A) Rs.1 Lac To 1.5 Lac C) Rs.2.5 Lac To 5 Lac E) Rs 7.5 Lac 10 Lac 2) Your Investment Portfolio: Sr.No. 1 2 3 4 5 6 7 8 9 10 11 12 Type Of Investment PPF NSC FIXED DEPOSIT POST OFFICE INSURANCE MUTUAL FUND SHARE PMS COMMODITIES BONDS HOUSING LOAN OTHER Current Investment Factor Future Expected Return B) Rs.1.5 Lac To 2.5 Lac D) Rs 5 Lac TO 7.5 Lac F) Above Rs 10 Lac.
3) Describe your investment nature? A) Weekly B) Quarterly B) Monthly D) Yearly 60 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
Master of Business Administration
4) For What purpose you are interested to invest? A) Tax benefit C) Liquidity B) Retirement purpose D) Earn return
5) NAME:-……………………………………….Date Of Birth…./…./19… Profession:-……………………….. Organization…………………………. Ph:-(O)……………………(R)……………………… (M)……………………………E-mail:-…………………………………….
6) References:1)Mr./Mrs………………………………………Contact No……………... 2)Mr./Mrs………………………………………Contact No……………...
61 Tilak Maharashtra University New Satara College of Engg. & Mgmt, Pandharpur
doc_704148735.doc