motilal oswal

MOTILAL OSWAL SECURITIES LTD.

A PROJECT REPORT ON

AS SUMMER TRAINEE IN

SUBMITTED TO: HEMCHANDRACHARYA NORTH GUJARAT UNIVERSITY, PATAN IN THE PARTIAL FULFILMENT OF THE TRAINING PROJECT IN M.B.A. PROGRAMME SUBMITTED BY: MAHESH.J. RAVAL UNDER THE GUIDANCE OF: Mr.Maheshbhai Makawana Motilal Oswal Securities Ltd.

Prof. K.K.Patel S.K.S.B.M, Patan.

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DECLARATION I, Mr. Mahesh. J. Raval do hereby declare that the project report titled “Awareness about company fixed Deposits” is a genuine research work undertaken by me and it has not been published anywhere earlier. Date: Place: Mahesh. J. Raval SKSBM, Patan.

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Mr. Maheshbhai Makawana Product Head (MF), Motilal Oswal Securities Ltd

CERTIFICATION BY THE ORGANIZATION This is to certify that Mr. Mahesh. J. Raval in M.B.A at Sevantilal Kantilal School of Business Management, Patan has worked under my supervision and guidance on him dissertation entitled “Awareness about Company Fixed Deposits” at Motilal Oswal Securities Ltd., Mehsana from May 17th 2009 to July 20th 2009. ” To the best of my knowledge this is an original piece of work.

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Prof. S.K. School of Business Management, Patan.

CERTIFICATION BY THE FACULTY GUIDE

This is to certify that the project report entitled “Awareness about Company Fixed Deposits” at Motilal Oswal Securities Ltd., Mehsana, is a bonafide record of work done by Mr. Mahesh. J. Raval, and submitted in partial fulfillment of the requirements of M.B.A program of Sevantilal Kantilal School of Business Management, Patan.

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PREFACE It is true that the world outside your cozy home is many a time quite different from what you have perceived. Similarly, it is possible that the theoretical knowledge acquired in the classroom may differ from the practical knowledge. In order to make an individual aware of the practical implication of what he has learned. He is enriched with the practical training. I as a student of M.B.A. got this opportunity to know what is actually happening in a company. The main areas covered during the training period are: Marketing department, HR department, Financial department, Customer care department and Technical department, I have taken training at Motilal Oswal Securities Ltd. I have sincerely acquired all the necessary information for my project report during my training period. I hope that this report will satisfy the object requirement.

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ACKNOWLEGDEMENT Sometimes words fall short to show gratitude, the same happened with me during this project. The immense help and support received from Motilal Oswal Securities Ltd overwhelmed me during the project. My sincere gratitude to Mr. Maheshbhai Makawana Product Head for providing me with an opportunity to work with Motilal Oswal Securities Ltd. I am highly indebted to Mr. Jay.K.Oza and Mr. Jay.S.Pandya, company project guide, who has provided me with the necessary information and his valuable suggestion and comments on bringing out this report in the best possible way. I am grateful to Mr. Vijaybhai Patel (Branch Head, Motilal Oswal Securities Ltd) and all of the members of mass consultancy, who have helped me in the successful completion of this project, special mention of Mr. Kiranbhai Patel, Mr. Parthbhai Raval, Mr.Vishalbhai Patel, Mr.Sanjaybhai Patel and Mr.Hirenbhai Patel. I also thankful to my peers, Palkesh Prajapati, Dimes Panchal , Dipak Prajapati and Priyanka Contractor who help me to complete this project on time. I also thank Prof.K.K.Patel, faculty guide, SKSBM, Patan who has sincerely supported me with the valuable insights into the completion of this project. Last but not the least; my heartfelt love for my parents, whose constant support and blessings helped me throughout this project.

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EXECUTIVE SUMMARY This project has been a great learning experience for me; at the same time it gave me enough scope to implement my analytical ability. This project as a whole can be divided into two parts:  The first part gives an insight about the Fixed Deposit and its various aspects. It is purely based on whatever I learned at Motilal Oswal Securities Ltd. One can have a brief knowledge about Fixed Deposit and all its basics through the project. Other than that the real servings come when one moves ahead. Some of the most interesting questions regarding Fixed Deposit have been covered. Some of them are: why has it become one of the largest financial intermediaries? How investors do choose company to invest in Fixed Deposits? Most popular stocks among fund managers, most lucrative sectors for fund managers, a special report on Fixed Deposit, does fund performance persists and the topping of all the servings in the form of portfolio analysis tool and its application. All the topics have been covered in a very systematic way. The language has been kept simple so that even a layman could understand. All the data have been well analyzed with the help of charts and graphs.

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 The second part consists of data and their analysis, collected

through a survey done on 116 people through questionnaires. It covers the topic “Awareness about Company Fixed Deposits”. The data collected has been well organized and presented. Hope the research findings and conclusions will be of use. It has also covered how many times people prefer to invest their money and about which group of people invest their money in fixed deposits I learn lost of things and quality of manager with practical experience. Mahesh Raval

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SR.NO

PARTICULARS

1 2 3 4 5 6 7

Declaration Certification By The Organization Certification by the Faculty Member Preface Acknowledgement Executive Summery Background Of Company Corporate Profile

7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 8 8.1 8.2 8.3 8.4 8.5

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Vision & Value of MOSL History & Milestones Testimonials Organization Profile MOSL & Subsidiaries Companies Services providing by MOSL About The Fixed Deposits Types Of The Fixed Deposits Bank Fixed Deposits Company Fixed Deposits Types Of Company Fixed Deposits Investment Objectives Investment Drawbacks How Can Invest In Company Fixed Deposits Objectives of The Fixed Deposits Benefits of The Fixed Deposits Drawbacks of The Fixed Deposits Data Analysis of Questionnaire & Interpretation Objectives of The Research Scope Of The Study Data Sources Sampling Methodology S.K.S.B.M. PATAN 9

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8.6 9 10 11 12 13 14

The Respondents of Questionnaire Questionnaire Data Analysis & Interpretation SWOT Analysis Research Findings & Conclusion Recommendations Bibliography

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SR.NO.

PARTICULARS

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

TABLE-1 TABLE-2 TABLE-3 TABLE-4 TABLE-5 TABLE-6 TABLE-7 TABLE-8 TABLE-9 TABLE-10 TABLE-11 TABLE-12 TABLE-13 TABLE-14 TABLE-15 TABLE-16 TABLE-17

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SR.NO 1 2 3 4 5 6 7 8 9 10 11 12 13 14

PARTICULARS GRAPH-1 GRAPH -2 GRAPH - 3 GRAPH -4 GRAPH - 5 GRAPH - 6 GRAPH - 7 GRAPH - 8 GRAPH - 9 GRAPH -10 GRAPH - 11 GRAPH -12 GRAPH - 13 GRAPH -14

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CORPORATE PROFIL Motilal Oswal Securities Ltd. (MOSL) was founded in 1987 as a small sub-broking unit, with just two people running the show. Focus on customer-first-attitude, ethical and transparent business practices, respect for professionalism, research-based value investing and implementation of cutting-edge technology has enabled us to blossom into an almost 2000 member team. Today company is a well diversified financial services firm offering a range of financial products and services such as         

Wealth Management Broking & Distribution Commodity Broking Portfolio Management Services Fixed Deposits and Bonds Institutional Equities Private Equity Investment Banking Services and Principal Strategies

Company has a diversified client base that includes retail customers (including High Net worth Individuals), mutual funds, foreign institutional investors, financial institutions and corporate clients. Company’s headquarter is in Mumbai and as of March 31st, 2009, had a network spread over 548 cities and towns comprising 1,289 Business Locations operated by its Business Partners and it. As at March 31st, 2009, company had 5, 41,372 registered customers.

In 2006, the Company placed 9.48% of its equity with two leading private equity investors based out of the US – New Vernon Private Equity Limited and Bessemer Venture Partners. The company got listed on BSE and NSE on September 9, 2007. The issue which was priced at Rs.825 per share (face value Rs.5 per share) got an overwhelming response and was subscribed 27.18 times in S.K.S.B.M. PATAN 14

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turbulent market conditions. The issue gave a return of 21% on the date of listing. As of end of financial year 2008, the group net worth was Rs.7 bn and market capitalization as of March 31, 2008 was Rs.19 bn. For year ended March 2008, the company showed a strong top line growth of 91% to Rs.7 bn as compared to Rs.3.68 bn, last year. New businesses like investment banking, asset management and fund based activities have contributed to this growth. Credit rating agency Crisil has assigned the highest rating of P1+ to the Company’s short-term debt program.

Motilal Oswal Financial Services Limited is the holding company of the following five subsidiaries:

CHART- 1

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Vision & Values of Motilal Oswal Securities Ltd.

 Vision :

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 Values(Mission):

Integrity

A company honoring commitment with highest ethical and business practices

Team Work

Attaining goals collectively and collaboratively

Meritocracy

Performance gets differentiated, recognized and rewarded in an apolitical environment

Passion & Attitude

High energy and self motivated with a “Do It” attitude and entrepreneurial spirit.

Excellence in Execution

Time bound results within the framework of the company’s value system

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HISTORY & MILESTONES The story of Motilal Oswal Securities Ltd (MOSL) goes back many years, when Mr. Motilal Oswal and Mr. Raamdeo Agrawal met each other as students in a Mumbai suburban hostel in the early eighties. Both the young chartered accountants hailing from a rural & an unpretentious background had a common dream viz. 'to build a professional organization with strong value systems, to provide reliable & honest investment advice to investors'. Thus was born their first enterprise called "Prudential Portfolio Services" in 1987.

2009 Motilal Oswal Securities Ltd. enters 'Limca Book of Records' for creating India's largest dealing room in Mumbai • MOSL was 'Rated No.1 – Best recommendations Mid & Small Caps' and won awards in 3 out of 4 categories at the Starmine India Broker Rankings 2009 from Thomson Reuters •

2008 • MOSL awarded the prestigious Nasscom - CNBC TV 18 IT User Award - 2008 • MOSL awarded 'The Best Franchisor in Financial Services' by Franchisee World Magazine 2008 for the second consecutive year • MOSL creates one of India's largest Equity Dealing & Advisory rooms; spread over 26,000 sq ft in Malad, Mumbai • Motilal Oswal's India Business Excellence Fund raised USD 125 million, 25% higher than the initial target of USD 100 million • D & B survey rates MOSL as India's top Broking House in terms of total number of trading terminals • MOSL alliance with IDBI Bank to offer Online Trading Services • Asia Money Brokers poll 2007 rates Motilal Oswal Securities Ltd. - Best Overall Country Research - Local Brokerage S.K.S.B.M. PATAN 18

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2007 • The Strategic partnership between MOSL and SBI - EZtrade reaches an important milestone i.e. in less than a year it has managed to sign up more than 10,000 customers • Starts Knowledge First campaign • Motilal Oswal was perceived as the most Research driven stock trading player - Starcom Mediavest Survey • Introduces a separate brand for Private Client Group - Purple • Motilal Oswal Commodities Broker Pvt Ltd (MOCBPL) bagges Globoil India's prestigious 'Outstanding Commodity Broking House 2007' Award • Motilal Oswal Financial Services ltd. gets listed on the BSE & NSE • Mr. Motilal Oswal - Chairman and Managing Director has been appointed as a member of the Managing Committee of Indian Merchant Chambers. • Motilal Oswal Financial Services Ltd files RHP with SEBI for an IPO • Motilal Oswal Financial Services Ltd. features as a case study in Harvard Business School • Motilal Oswal Financial Services Ltd ties up with Punjab National Bank to offer online trading to its customers

2006 • Organizes the second India Conference with Bear Stearns New York

featuring discussion panels and presentations by prominent business leaders and senior management of Indian companies in banking, technology, healthcare, consumer, oil and gas, infrastructure and other key sectors. • Launches the India Business Excellence Fund (IBEF), a US$ 100 mn India focused Private Equity Fund.

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• Investment Banking business advises Aban in their majority controlling stake of Sinvest ASA – one of the largest investment banking deals of 2006. • Places 9.29% with two leading private equity investors - New Vernon Private Equity Limited and Bessemer Venture Partners. • Issues 14% of companies equity to employees as ESOPs. • Acquires a leading south Indian brokerage firm - Peninsular Capital Markets. Also acquires 3 more brokerage firms in UP and Gujarat. • Enters Private Equity and Investment Banking businesses. • Value PMS gives 390% returns to its investors between Feb 2003 and March 2006. • Relaunches its e-Broking service through a nationwide campaign. First advice-based online trading proposition in the Indian markets. • Another milestone in distribution – over 1000 outlets, over 375 cities, serving over 1, 75,000 customers. • Employee base crosses 2000 and Business Associate base crosses 1000.

2005 • Organizes the first India Conference with Bear Stearns in New York.

India’s largest such conference of its kind in the US. • Asia money Brokers Poll 2005 rates Motilal Oswal Securities - Best Local Brokerage, MOSL Independent Research House, Best in Sales and Service. • Launches two new Portfolio Management Schemes - Value Hedging for derivatives and Discover Value for the Rs. 5 lakh to Rs. 50 lakh category. S.K.S.B.M. PATAN 20

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• Acquires local brokerage Gayatri Capitals from Andhra Pradesh and Varghese from Karnataka. • Deepest distribution in the stock broking segment with 700 outlets in 320 cities and 1, 20,000 customers.

2004 • Presence expanded to 270 outlets in 150 cities and 20 states. • Value PMS delivers a whopping 160% post tax returns for the period ended April • Bulls Eye PMS - A momentum based PMS launched. • Start of the Solid Research Solid Advice campaign.

2003 • Enters the mutual fund and IPO distribution business. • MOSt Portfolio Management Services launched with Mr. Raamdeo Agrawal as the Portfolio Manager. Uniquely structured performance related fees. • Inquire team is successful in capturing the uptrend in Banking, Auto and Infrastructure sectors. • Received the Asia Money award for the Best Overall Domestic Research House-Mega funds. • Crossed 15,000 Depository accounts. • 9 own branches setup at 7 cities to provide Equity Advisory Services. More in the pipeline. • 150 outlets in 110 cities across 18 states & one Union Territory in India manned by 1000 people servicing over 15,000 Retail and Institutional Investors. S.K.S.B.M. PATAN 21

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2002 • Mr. Navin Agarwal, Head of Equity Research & Institutional sales, inducted in the Board of Directors. • MOSt consolidates its retail operations & upgrades its IT / Back Office infrastructure to cater to its growing network of branches, Franchisees and Channel Partners. • Received the Asia Money Award - 2nd best among Indian Brokerage firms. • Retail network completes coverage of 100 cities in India. • Direct servicing of HNI clients is initiated. • Crosses 10,000 Depository accounts.

2001 • Legendary marketing guru Shunu Sen’s services taken to revitalise retail marketing strategy and branding efforts. • Starts offering Derivatives products and advisory services on both BSE as well as NSE.

2000 • Received the Asia Money award for the Best Domestic Equity house. • Both Mr. Motilal Oswal and Mr. Raamdeo Agrawal receive Rashtriya Samman Patra from Central Board of Direct Taxes for being amongst the top 50 tax payers in India from FY94-FY98. S.K.S.B.M. PATAN 22

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• Acquires its 100th Franchisee / Channel Partner and emerges as a leading player in the Indian Broking Sector. • Becomes a Depository Participant of Central Depository Services Limited (CDSIL).

1999 • Mr. Raamdeo Agrawal starts attending legendary billionaire investor

Warren Buffett’s Annual General Meetings of Berkshire Hathway Inc. He still continues to attend it every year. • The Wealth Creation Study started in 1996 culminates into Wealth Creation Seminar and Awards function in 1998. • First Stock Broking house to brand its services as a research and advice based broker. • “Wealth Creation” Campaign started. • www.MotilalOswal.com launched. First broking house in India to go on the web. • Becomes a Depository Participant of National Securities Depository Limited (NSDL). • Inducts Mr. Ivan Mathias, former country head of Watson Wyatt Worldwide, on its Board to Directors to shape HR initiatives.

1998 • Mr. Motilal Oswal joins the Governing Board of The Stock Exchange, Mumbai.

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1996 • Wealth Creation Study started. First of its kind study initiated to

identify biggest and fastest wealth creating companies in Indian Stock markets.

1995 • “Motilal Oswal” gets incorporated as Motilal Oswal Securities Ltd.

1994 • MOSt acquires NSE Membership and plans for major expansion of

its retail network. • Inquire (Indian Equity Research) is formally created at a 2500 sq. ft office in South Mumbai with bigger and better quality infrastructure than the corporate office. Since then nearly 20% of revenue is allocated to research. First Domestic Stock broking house to have such a strong Research focus. • “Motilal Oswal” enters Institutional Broking business.

1990 • After just three years in the business, “Motilal Oswal” is formed

through acquisition of membership on The Bombay Stock Exchange (BSE). Three more memberships taken in later years.

1987 • Mr. Motilal Oswal and Mr. Raamdeo Agrawal lay the foundation of a

great partnership by starting a sub-broking firm. The venture stands out from the rest due to their approach of Research-based broking even when sub-brokers.

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TESTIMONIALS "I have glanced through the 11th Wealth Creation Study and it indeed is informative." -Mr.Raymond N. Bickson Managing Director, The Indian Hotels Company Ltd. These (Wealth Creation) reports have become handy reference guides to corporate performance. I find them very useful indeed -S M Datta Peerless General Finance & Investment Co. Ltd. "Firms like Motilal Oswal are playing a very major role of taking the equity cult deep into the rural areas through presence in 4000 terminals throughout the country in electronic trading". -Shri Prithviraj Chavan, Minister of State in the Prime Ministers Office, Government of India, At the Bear Sterns 2nd Annual India Conference, September 2006 “Motilal Oswal is embarking on a path to become a full-fledged financial powerhouse.” -Business India

“Motilal Oswal Securities is the most successful brokerage house ever. Research was their forte and today providing research backup to brokerage clients has become a part of the game for all brokerage houses of repute. Motilal Oswal Securities has been rated as the best in research by AQ research of UK in March 2006” -Hindustan Times “Sheer hard work, focused research and consistent and logical investment philosophy is what sets apart companies like Motilal S.K.S.B.M. PATAN 25

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Oswal. They have risen to the top because of their single-minded focus on investment philosophy and did not deviate despite swings in the market. Therein lies a lesson. If they can do it, so can others. Never try to reinvent the wheel; follow the leader and you have plenty of them in the Indian market.” -Sandeep Shenoy, Strategist, Pioneer Intermediaries "I am sure you will take care of my investments while I am out . . . Your Relationship Manager's understanding is good and is capable of showing good results. We did 40% thereabouts over last quarter compared to 30% through my equity mutual fund. So keep it up and remember we have to grow at least 30% next quarter". -An EAG Client “One can define the service of Motilal Oswal Securities as: To give real service you must add something which cannot be bought or measured with money; and that is sincerity and integrity followed by dedicated support from all departments of the office". -A Business Associate

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ORGANIZATION PROFILE

Mr. Motilal Oswal Chairman and Managing Director Mr. Motilal Oswal is the promoter of Motilal Oswal Securities Ltd. He is a member of Institute of Chartered Accountants of India and started the business along with the co-promoter Mr. Raamdeo Agarwal in 1987.Business Administration is his forte, Honesty, transparency and client goodwill form the core of his business practice. “Service is required in everything, in research, in execution and in settlement. It is going to be the key to survival. If you give good service and value to your clients, it ill translates into good business.” This has been a strong belief of Mr. Motilal Oswal and he has not only practiced it himself but also made efforts to inculcate similar values in the employees of the organization. He had been elected as a Director of BSE and joined its governing board in 1998. He is currently a member of various committees of CDSIL and SEBI. He is currently a member of the NSE committee for F&O.

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Mr. Raamdeo Agrawal Joint Managing Director Mr. Raamdeo Agrawal is the man behind the strong research capabilities at Motilal Oswal Financial Services Ltd. He is an Associate of Institute of Chartered Accountants of India and also a member of the National Committee on Capital Markets of the Confederation of Indian Industry. Mr. Agrawal specialises in equity research. He has been authoring the annual Motilal Oswal Wealth Creation Study since its inception in 1996. In 1986, he wrote the book ‘Corporate Numbers Game’, along with co-author, Mr. Ram K Piparia. He has also featured on 'Wizards of Dalal Street on CNBC TV 18'. Mr. Agrawal has received the "Rashtriya Samman Patra" awarded by the Government of India for being amongst the highest Income Tax payers in the country for a period of 5 years from FY95–FY99.

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Mr. Navin Agrawal Director Mr. Navin Agarwal is on the Board of Motilal Oswal Financial Services Limited. He is a member of Institute of Chartered Accountants of India, Institute of Cost & Works Accountants of India, and Institute of Company Secretaries of India. He heads the Institutional Broking business and has been instrumental in building a market leading position with domestic and foreign institutional investors. Under his leadership, the firm has been rated as The Best Indian Brokerage House by Asia money 2005. Leveraging on the dominant positioning in institutional business, he has also been instrumental in building an Institutional Derivatives business when derivative products were introduced in the Indian markets. Here again, a market leading position has been established by MOSL.

Mr.AshutoshMaheshwari CEO – MOIAPL Mr. Ashutosh Maheshvari holds a bachelor's degree in technology (Chemical Engineering) from the Indian Institute of Technology, Kharagpur. He has also done his Masters in Business Administration from University of Delhi. S.K.S.B.M. PATAN 29

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Prior to joining our Company, he was the Executive Director with Rabo India Finance Private Limited. Mr. Maheshvari has 13 years of experience in the financial sector and has held various senior positions. Previously, he has worked with CRISIL and ICI India Limited.

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Mr.Vishal Tulsyan CEO - MOPEAPL Mr. Vishal Tulsyan holds a bachelor's degree in commerce from St. Xaviers College, Kolkata University, and is a professionally qualified Chartered Accountant from The Institute of Chartered Accountants of India. He is an allIndia rank holder in Chartered Accountancy. Prior to joining MOFSL, Mr. Tulsyan was Director, Corporate Finance with Rabo India Finance Private Limited, a subsidiary of Rabo bank International. He has over 10 years of experience in corporate finance and has held various senior positions. Previously, he worked with SBI Capital Markets Limited, Mumbai and ANZ Grind lays Bank Limited, Kolkata

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Mr.Rajat Rajgarhia Director – Research Mr. Rajat Rajgarhia started his career with his family run broking business in equities. Post completing his CA and MBA, he joined Indiainfoline for a short stint in the research function. He joined Motilal Oswal in 2001 as a research analyst. Mr. Rajgarhia then went on to head the research team and now has been associated with MOSL for over 7 years.

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Mr. Rajesh Dharamshi

Director - Institutional Trading Mr. Rajesh Dharamshi started his career with Hemendra R Sheth (Member of BSE & NSE) and went on to a very long stint with group. He was Head of Institution of HRS from 2000-2002. He than moved on as Sr. VP - Institution Sales Equity & Derivatives for Refco (Now MF Global).Mr.Dharamshi joined Motilal Oswal as Head of Institutional Derivatives in 2003. He currently heads Institutional Trading (Cash & Derivatives) at MOSL. He is also a Director on the board of Motilal Oswal Commodities Broker Pvt Ltd & Motilal Oswal Capital Markets Pvt Ltd.

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Mr.JayeshParekh

Director - Institutional Sales Mr. Jayesh Parekh began his career with ICICI as a management trainee after securing ranks in Intermediate and Final exams of Chartered Accountancy. After ICICI, he joined Anand Rathi group and worked in different functions including corporate advisory and equity research. Post Anand Rathi Securities, he joined SMIFS Securities and worked for 5 years as head of research. Mr. Parekh joined Motilal Oswal in 2003. He was rated #1 sales person for India in the Asia Money Brokers poll for 2 consecutive years in 2006 and 2007. Mr. Parekh is Head of Institution Sales for MOSL

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Mr.ManishShah

AssociateDirector, BusinessStrategyand Product Development Mr. Manish Shah is a graduate from the Institute of Cost and Work Accountants of India and a Certified Financial Analyst from the Institute of Chartered Financial Analysts of India. Mr. Shah had a brief stint with a proprietary firm KG Vora in 1991, where he was involved in developing the IPO Business. In June 1992, he joined Info -Invest Group as Research Analyst and later was responsible for developing the Institutional and Retail business. He then worked as a manager at Mafatlal Securities Ltd from July 1995. Mr. Shah joined MOSL in 1999. He currently heads the Equity business and is also responsible for Business Strategy and Product Development.

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Mr.NitinRakesh

CEO, Asset Management Business Mr. Nitin Rakesh has over 13 years of experience in the Financial Services industry. His last role was as the CEO and Executive Director of State Street Syntel Services, the JV between State Street Bank (NYSE: STT) & Syntel (NASD: SYNT). In addition, he has held various positions in organizations such as TCG Investments and Unit Trust of India (UTI Mutual Fund). Mr. Rakesh is a B.E. (Computers), Delhi College of Engineering & an MBA (Finance), NMIMS, Mumbai. Mr. Rakesh heads the Asset Management Business.

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Strong Management Team:The organization finds its strength in its team of young, talented and confident individuals. Qualified professionals carry out different functions under the able leadership of its promoters, Mr. Motilal Oswal and Mr. Raamdeo Agrawal. Our talented pool of people comprises qualified and experienced professionals with an established track record. We believe that our management's entrepreneurial spirit, strong technical expertise, leadership skills, insight into market/customer needs provide us with a competitive strength which will help us implement our business strategies.

Training & Manpower Development:MOSL conducts various training and development programs regularly to enhance the capabilities of its team. As much as 5% of the salary bill is spent on such programs, which is amongst the highest for a broking organization in India. MOSt is truly a learning organization with lead being taken by the Directors, who regularly participate in top management learning programs like Strategic Management Program at Indian School of Business, Hyderabad, Strategy Summits with Management Gurus like Tom Peters and Dr. Lester Thurow, Dean, Sloan School of Management, (MIT) and Brand Management Seminar by Al Ries etc.

Focus on Research:Research is the solid foundation on which Motilal Oswal Securities advice is based. Almost 10% of revenue is invested on equity research and we hire and train the best resources to become advisors. At present we have 22 equity analysts researching over 27 sectors. From a fundamental, technical and derivatives research perspective; Motilal Oswal's research reports have received wide coverage in the media (over a 1000 mentions last year). Our consistent efforts towards quality equity research have reflected in an increase in the ratings and rankings across various categories in the Asia Money Brokers Poll over the years.

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Our unique Wealth Creation Study, authored by Mr. Raamdeo Agrawal, Managing Director, is now in its 13th year. Investors keenly await this annual study for the wealth of information it has on the companies that created wealth during the preceding five years.

Awards and Accolades:Motilal Oswal Financial Services has received many accolades in the year gone by. Some of them are:  Rated ‘Best Overall Country Research’ for a Local Brokerage in the 2007 Asia Money Brokers poll  Rated India’s top broking house in terms of total number of trading terminals by the Dun & Bradstreet survey  Rated ‘Outstanding Commodity Broking House-2007’ by Globoil India  Ranked second best for Customer Responsiveness in the Financial Sector at the Avaya Global Connect Customer Responsiveness awards

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MOSL & SUBSIDERIES COMPANIIES  Motilal Oswal Financial Services Ltd.

3rd Floor, Hoechst House, Nariman Point, Mumbai - 400 021. Board: + 91 – 022 - 39825500/ 39825540. Fax: + 91 – 022 - 22823499  Motilal Oswal Securities Ltd. – Wealth Management

3rd Floor, Hoechst House, Nariman Point, Mumbai - 400 021. Board: + 91 – 022 - 39825500. Fax: + 91- 022- 22823499.  Motilal Oswal Securities Ltd. - Institutional Equity

4th Floor, Hoechst House, Nariman Point, Mumbai - 400 021. Board: + 91 – 022 - 39825550 Fax: + 91 – 022 - 22883821 / 22885038.  Motilal Oswal Private Equity Advisors Pvt. Ltd.

3rd Floor, Hoechst House, Nariman Point, Mumbai - 400 021. Board : + 91–022-39825500/39825540. Fax : +91–022-22823499.  Motilal Oswal Investment Advisors Pvt. Ltd. 112/113, 11th Floor, Bajaj Bhawan, Nariman Point, Mumbai - 400 021. Board : + 91 – 022 - 39804380 Fax: + 91 – 022 - 39804315.  Motilal Oswal Commodities Broker Pvt. Ltd.

81/82, Bajaj Bhawan, Nariman Point, Mumbai - 400 021. Board: + 91 – 022 - 39804200/ 01 Fax: + 91 – 022 - 22816161.

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SERVICES PROVIDING BY MOSL MOSL’S businesses and primary products and services are:  Wealth Management  Broking & Distribution  Commodity Broking  Portfolio Management Services  Fixed Deposits and Bonds  Institutional Equities  Private Equity  Investment Banking Services and  Principal Strategies

Wealth Management:-

Financial planning for individual, family and business wealth creation and management needs. These are provided to customers through our Wealth Management service called ‘Purple’

Broking & Distribution Services:      

Equity (cash and derivatives) Commodity Broking Portfolio Management Services Distribution of financial products Financing Depository Services IPO distribution

We offer these services through our branches, Business Partner locations, the internet and mobile channels. We also have strategic tieups with State Bank of India and IDBI Bank to offer our online trading platform to its customers. S.K.S.B.M. PATAN 40

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Commodity Broking:Through Motilal Oswal Commodities Broker (P) Ltd our fully owned subsidiary; we provide commodity trading facilities and related products and services on MCX and NCDEX. Besides access to the best of research in the form of Daily Fundamentals & Technical Reports on highly traded commodities, our clients also get access to our exclusive Customized Trading Advice on both the trading platforms. We offer these services through our branches, Business Partner locations, the internet and mobile channels

Portfolio Management Services :Motilal Oswal Portfolio Management Services offer a range of investments solutions through discretionary services. We at Motilal Oswal have helped create wealth for our customers through our Portfolio Management Services. Our knowledge of the markets together with our understanding of our customers and their risk profiles has helped us design a range of portfolio offerings for our clients. These include the Value Strategy, Bulls Eye Strategy, Trillion Dollar Opportunity Strategy and Focused Strategy Series I. As of March 31st, 2009, the Assets Under Management of our various portfolio schemes stood at Rs.4.77 bn. Motilal Oswal group has applied to the regulatory bodies for a license to operate as a Domestic Asset Management Company (Mutual Fund) and we expect to begin operations soon.

Fixed Deposits and Bonds:-

Motilal Oswal group has worked on fixed deposits and bonds which have issued by the various companies. Such fixed deposits and bonds have used by the companies to fulfill their capital needs only. Motilal Oswal Securities Ltd. has offered safety and securities of the investment, invested by he investors.Anybody can enter/ exit in/from the fixed deposit and bonds schemes.

Institutional Equities:S.K.S.B.M. PATAN 41

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We offer equity broking services in the cash and derivative segments to institutional clients in India and overseas. These clients include companies, mutual funds, banks, financial institutions, insurance companies, and FIIs. As at March 31st, 2009, we were empanelled with over 300 institutional clients including 200 FIIs. We service these clients through dedicated sales teams across different time zones.

Investment Banking:We offer financial advisory services relating to mergers and acquisitions (domestic and cross-border), divestitures, restructurings and spin-offs through Motilal Oswal Investment Advisors Private Ltd. (MOIAPL) We also offer capital raising and other investment banking services such as the management of public offerings, private placements (including qualified institutional placements), rights issues, share buybacks, open offers/delistings and syndication of debt and equity. MOIAPL has closed 23 transactions in 2007-08 worth US$ 1.8 billion and had 18 mandates in hand as at March 31, 2008.

Private Equity:In 2006, our private equity subsidiary, Motilal Oswal Private Equity Advisors Private Ltd (MOPEAPL) was appointed as the investment manager and advisor to a private equity fund, India Business Excellence Fund, which was launched with a target of raising US$100 mn. The fund is aimed at providing growth capital to small and medium enterprises in India, with investments typically in the range of US$3 mn to US$7 mn. MOPEAPL will manage and advise the fund and other private equity funds, which may be raised in the future. In its final closing, in December 2007, the fund obtained commitments of US$125 mn (Rs.4, 875 mn) from investors in India and overseas. The Fund has S.K.S.B.M. PATAN 42

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deployed/ committed $ 58 mn across 8 deals. MOPEAPL has recently launched an INR 750 crores domestic Real Estate Private Equity Fund called “India Realty Excellence Fund” sponsored by Motilal Oswal Financial Services Ltd.

Principal Strategies Group:For effective management of treasury operations and to capitalize on market opportunities, the Group has set up a 30 member team which would be responsible for effective deployment of funds into different trading and arbitrage strategies.

ABOUT THE FIXED DEPOSITS S.K.S.B.M. PATAN 43

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Fixed Deposits- Recently popular instrument Introduction:With investment avenues increasing by the day it is quite easy to forget that until the reforms era kicked off in 1991; Indians had very limited means of investing their savings. While it is true that we have not yet seen any development on the lines of the more developed economies there are a number of instruments today that were unheard of amidst the lay investors just a short decade ago. On the one hand investors are still struggling to come to terms with the complex nature of some securities and on the other intermediaries are trying to raise the investors' awareness. Stock favorites such as fixed deposits (FDs) are meanwhile enjoying a renewed burst of popularity. The slump in the capital markets and the large amounts of losses by investors in IPOs are but a couple of factors for this hunt for security by investors, even at the cost of lower returns. The central bank, RBI, and the market regulator, SEBI, have been attempting to rein in unscrupulous operators from cashing in on this rush for FDs. In fact, between 1994 and 1996 a few states like Tamil Nadu saw a literal explosion of FD offers with promises of impossible returns like 36 per cent to even 50 per cent per annum in some cases. A number of gullible investors saw their savings go up in smoke at the hands of such corporate entities. It is only recently that credit rating has been made mandatory for FD raising exercises, as were prudential norms. However, the bitter lesson resulted in investors ignoring almost all other factors barring security while investing their savings. Thus, the past two years have seen a huge growth in bank deposits and in the FD levels of the better segment of India Inc. In this segment, we will regularly post details on the three main categories of FDs, i.e., with banks, manufacturing companies and non-banking finance companies or NBFCs. Investors can find information on various changes that occur in this sector and details on how government policies could affect this crucial area. We will also keep investors abreast of interest

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rates offered and the performance of individual entities in each of the three above-mentioned segments. Fixed Deposits, In a world where the returns on your investment are directly proportional to the inherent risks, it is but natural that the investor who opts for fixed income instruments is well into his chosen career. Basic family needs such as an own house and reasonable insurance cover would have been provided for, but the proximity to retirement would prompt the need to lower investment risks. Also returns from investments form the principal source of income and preservation of capital is paramount. As is the basic rule in choosing any investment option, here too it is essential that the investor decides in advance the proportion of investing in stocks and bonds. Periodic evaluation is equally important and while necessary changes have to be made, investments must never be switched for negligible changes in interest rates. For example if you are receiving say 12.5 per cent per annum through Bond A, think very hard before you decide to switch over to Bond B which promises 12.75 per cent or even 13 per cent. The decision to effect a change between fixed incomes instruments should not be made lightly as the security of the principal is sacrosanct. Thus judicious selection of instruments is critical. Luckily in India there a number of avenues for such investors, with the most popular forms being:      

  

Fixed deposits with banks and post offices. Fixed deposits with companies. Public sector bonds. Income-oriented units and growth oriented units. Non-convertible debentures of private sector. Convertible debentures National Savings Certificates. Provident Fund contributions. Indira Vikas Patras.

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Provident funds and public provident funds are also excellent areas of investment and offer both initial and a continuing tax advantage. There are added benefits such as the existence of a facility for partial withdrawals, attractive rates of returns and immunity from attachment of a court decree. If you are on the hunt for a tax-sheltered current income then give preference to income-oriented units and public sector bonds as rates of return are more attractive than other fixed income avenues with similar tax benefits. Convertible debentures of reputed, profit making companies are also worth picking up. Such securities are traded lower than the company's underlying equity. The company pays interest until conversion after which the investor gets dividend income. If your taxable income is less than Rs.50, 000 and you have exhausted the limits for various taxsheltered investments, non-convertible debentures, Indra Vikas Patras and corporate fixed deposit schemes would then be your best bet. Proposition: In the last two or three years the hotel industry has been moving down. Most of the stocks have taken a beating. Foreign players have also started moving into the market. The general economic depression coupled with the S-E Asian crisis and the nuclear blasts have taken their toll on the industry. Recent trends indicate a shift in fortunes for the industry as a whole and especially for a few players. .

Fixed Deposit:What is a fixed deposit? A fixed deposit is an investment account comprising a single deposit, for a fixed term at a guaranteed fixed rate of interest. It can be used for both short and long term investment purposes. A fixed deposit account allows you to deposit your money for a set period of time, thereby earning you a higher rate of interest in return. Fixed deposits also give you a higher rate of interest than a savings bank account. Why Fixed Deposit?

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Fixed deposit is one of the oldest & most common methods of Investing. FDs look great because you get a decent risk-adjusted return and your principal is protected. Fixed deposits help you to secure your hard earned money for a long duration. Fixed deposit is a financial instrument for you to deposit your money for a fixed duration ranging from 15 days to 5 years. However you need to remember that FDs are safe only as long as they are parked in large bank. Now a day, the banks & financial market is becoming very competitive. You need to check up on the different types of FDs scheme available before making any fixed deposit investments. Banks offer various types of fixed deposits in India to their customers. Some banks offer a fixed deposit schemes which offer more savings & over draft facility. Some private company also offer fixed deposit scheme.A regular fixed deposit can earn you an interest up to 8.75% and senior citizens who opt for such a fixed deposit scheme are eligible for an additional 0.5 % increase. Who can apply for a fixed deposit account? Individuals and organizations with the intention of retaining their savings for a fixed period for some future use. What is the minimum amount can be deposited? The minimum deposit amount is Rs. 1,000/- Deposits can be made in multiples of Rs. 100/-.

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Chart of Fixed Deposit Investment CHART-2

Here the Chart shows that Investors invest their money in the Fixed Deposits for particular time period on particular interest rate. If the interest rate raise then the amount of the investment is also increased and if the rate is fall then the investment is decreased. The investors will get the amount with increment or decrement on particulars time period if the rate is respectively increased or decreased .The main benefits of the Fixed Deposit is that investors can anytime switch it if it does not give proper return.

TYPES OF FIXED DEPOSITS S.K.S.B.M. PATAN 48

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There are two types of Fixed Deposit in India. One is Fixed Deposits in Banking Sector and other is Non- Banking Fixed Deposits. In Nonbanking Fixed deposits, various companies, Private and Public Institutes and post Offices provide the Fixed Deposit Services. Nonbanking FDs are called Non-Banking Finance Companies (NBFCs) Fixed Deposit.

-: Bank Fixed Deposit:-

A fixed deposit is meant for those investors who want to deposit a lump sum of money for a fixed period; say for a minimum period of 15 days to five years and above, thereby earning a higher rate of interest in return. Investor gets a lump sum (principal + interest) at the maturity of the deposit. Bank fixed deposits are one of the most common savings scheme open to an average investor. Fixed deposits also give a higher rate of interest than a savings bank account. The facilities vary from bank to bank. Some of the facilities offered by banks are overdraft (loan) facility on the amount deposited, premature withdrawal before maturity period (which involves a loss of interest) etc. Bank deposits are fairly safer because banks are subject to control of the Reserve Bank of India.

Features:Bank deposits are fairly safe because banks are subject to control of the Reserve Bank of India (RBI) with regard to several policy and operational parameters. The banks are free to offer varying interests in fixed deposits of different maturities. Interest is compounded once a quarter, leading to a somewhat higher effective rate. The minimum deposit amount varies with each bank. It can range from as low as Rs. 100 to an unlimited amount with some banks. Deposits can be made in multiples of Rs. 100/-. Before opening a FD account, try to check the rates of interest for different banks for different periods. It is advisable to keep the amount in five or ten small deposits instead of making one big deposit. In case of any premature withdrawal of partial amount, then only one S.K.S.B.M. PATAN 49

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or two deposit need be prematurely encashed. The loss sustained in interest will, thus, be less than if one big deposit were to be encashed. Check deposit receipts carefully to see that all particulars have been properly and accurately filled in. The thing to consider before investing in an FD is the rate of interest and the inflation rate. A high inflation rate can simply chip away your real returns.

Returns:The rate of interest for Bank Fixed Deposits varies between 4 and 11 per cent, depending on the maturity period (duration) of the FD and the amount invested. Interest rate also varies between each bank. A Bank FD does not provide regular interest income, but a lump-sum amount on its maturity. Some banks have facility to pay interest every quarter or every month, but the interest paid may be at a discounted rate in case of monthly interest. The Interest payable on Fixed Deposit can also be transferred to Savings Bank or Current Account of the customer. The deposit period can vary from 15, 30 or 45 days to 3, 6 months, 1 year, and 1.5 years to 10 years.

TABLE-1

Duration

Interest rate (%) per annum

15-30 days

4 -5 %

30-45 days

4.25-5 %

46-90 days

4.75—5.5 %

91-180 days

5.5-6.5 %

181-365 days

5.75-6.5 %

1-2 years

6-8 %

2-3 years

6.25-8 %

3-5 years

6.75-8

Advantages:S.K.S.B.M. PATAN 50

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Bank deposits are the safest investment after Post office savings because all bank deposits are insured under the Deposit Insurance & Credit Guarantee Scheme of India. It is possible to get a loan up to7590% of the deposit amount from banks against fixed deposit receipts. The interest charged will be 2% more than the rate of interest earned by the deposit. With effect from A.Y. 1998-99, investment on bank deposits, along with other specified incomes, is exempt from income tax up to a limit of Rs.12, 000/- under Section 80L. Also, from A.Y. 1993-94, bank deposits are totally exempt from wealth tax. The 1995 Finance Bill Proposals introduced tax deduction at source (TDS) on fixed deposits on interest incomes of Rs.5000/- and above per annum.

Disadvantages:Bank Fixed deposit Rate are lower than non banking fixed Deposit Rate and so if the market is high investor of bank FDs get low returns on their investment compare than Others.

How to apply:One can get a bank FD at any bank, be it nationalized, private, or foreign. You have to open a FD account with the bank, and make the deposit. However, some banks insist that you maintain a savings account with them to operate a FD. When a depositor opens an FD account with a bank, a deposit receipt or an account statement is issued to him, which can be updated from time to time, depending on the duration of the FD and the frequency of the interest calculation. Check deposit receipts carefully to see that all particulars have been properly and accurately filled in

-: Company Fixed Deposits:Fixed deposits in companies that earn a fixed rate of return over a period of time are called Company Fixed Deposits. Financial S.K.S.B.M. PATAN 51

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institutions and Non-Banking Finance Companies (NBFCs) also accept such deposits. Deposits thus mobilized are governed by the Companies Act under Section 58A. These deposits are unsecured, i.e., if the company defaults, the investor cannot sell the company to recover his capital, thus making them a risky investment option. NBFCs are small organizations, and have modest fixed and manpower costs. Therefore, they can pass on the benefits to the investor in the form of a higher rate of interest. NBFCs suffer from a credibility crisis. So be absolutely sure to check the credit rating. AAA rating is the safest. According to latest RBI guidelines, NBFCs and companies cannot offer more than 14 per cent interest on public deposits. Company/NBFC Fixed Deposits are rated by credit rating agencies like CARE, CRISIL and ICRA. A company rated lower by credit rating agency is likely to offer a higher rate of interest and vice-versa. An AAA rating signifies highest safety, and D or FD means the company is in default.

Definition: Company fixed deposit is recently popular instrument to collect the money from Investor to fulfill the company’s financial necessity. “Company fixed deposit is such like gadget by which it offers a high return investment scheme to investors for fulfilling its financial requirement for particular time period.”

Types of the Company Fixed Deposits

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Company Fixed Deposits forms is available through various broking agencies or directly with the companies. Jaiprakash Association Ltd., Tata Financial Services ltd. Alliance Capital Private Ltd. Birla, Cholamandalam, Franklin Templeton is very well known company which provides the company fixed deposits. There are four types of the company fixed deposit. 1. Non Cumulative Deposits (Recurring Deposits) 2. Cumulative Deposits 3. Reinvestment Deposits 4. Callable Fixed Deposits

1. Non-cumulative Deposits (Recurring deposits): Company provides two types of non-cumulative deposits. One is monthly income deposits and other is Quarterly income deposits. In India most of the companies provide this two typed FDs.

 Monthly income deposits: In Monthly income deposits investors invest their money in company on particular time which is one Month. Company paid the interest every month. The interest is paid constantly every month.

 Quarterly income deposits: In this Scheme interest is paid once every quarter. In Quarterly income deposits, you can choose the minimum amount you want to save every month ranging from Rs. 100/- to Rs. 1,000/- .The chosen S.K.S.B.M. PATAN 53

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amount will be the core amount and you can deposit up to ten times of the core amount every quarter.

2. Cumulative Deposits: The Cumulative Benefit Deposit Scheme has various customerconvenient features. You can invest any amount, anytime You can choose any from a combination of four plans. 6months,1 years, 2 years and 3 or more than 3 years. The minimum deposit is Rs. 100/-. Higher deposits should be in multiples of Rs. 5/-.

To know more about this two schemes. Let’s take example of Jaiprakash Associates Ltd. FDs schemes.

Jaiprakash Associates ltd. JP association provides Non-cumulative FD schemes and cumulative FD schemes. In Non-cumulative FD Schemes Company put Scheme A

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for Monthly Income Plan and B for Quarterly Income Plan. Company put schemes C for Cumulative FD plan.

FIXED DEPOSIT SCHEMES NON-CUMULATIVE DEPOSITS

TABLE-2 SCHEME A MONTHLY INCOME PLAN Period Mini. Amount(Rs.) Rate of Interest (%) 1yrs. 15000 11.00% 2yrs. 15000 11.50% 3yrs. 15000 12.00%

TABLE-3

SCHEME B QUARTERLY INCOME PLAN Period Mini. Amount(Rs.) Rate of Interest (%) 1yrs. 10000 11.00% 2yrs. 10000 11.50% 3yrs. 10000 12.00%

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 Additional amounts in multiples of Rs.1000/-.  Interest on quarterly income plan is compounded monthly and paid quarterly.  Post dated interest warrants on FDs for each financial year will be dispatched in advance along with the FDs receipts (schemes A& B).  Special Rate: An additional rate is 0.50% per annum shall be paid to (a) Senior citizens above the age of 60 yrs. (b) Shareholders of JAL (mini. 100 shares) (c) employee of Jaypee Group. CUMULATIVE DEPOSITS

TABLE-4 SCHEME C Period

Mini. Categor Payable on Amount(Rs.) y Maturity(Rs.) 6Months 10000 General 10550 Special 10575 1 yrs. 10000 General 11157 Special 11213 2 yrs. 10000 General 12572 Special 12697 3 yrs. 10000 General 14308 Special 14522

YIELD (%) 11.00 11.50 11.57 12.13 12.86 13.48 14.36 15.07

 Additional amounts in multiples of Rs.1000/-.  Maximum amount per investor for six months’ duration- Rs. 10 lacs.  Interest compounded monthly on deposit of year or more.  Special Rate: An additional rate is 0.50% per annum shall be paid to (a) Senior citizens above the age of 60 yrs. (b) Shareholders of JAL (mini. 100 shares) (c) employee of Jaypee Group. S.K.S.B.M. PATAN 56

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3. Reinvestment Deposits:A Reinvestment Deposit Plan basically allows you to reinvest the interest earned on your deposit. If you would like to retain your deposits and accumulate it with interest, you can apply for a Reinvestment Deposit Plan. You could use these deposits to meet any expenditure in the future... children's education and marriage.   



The features of a Reinvestment Deposit Plan. The interest on your deposit also earns interest. You can avail loans of up to 85% on the principal and also on the interest accrued. You can close your deposit prematurely without any difficulty. The minimum deposit amount is Rs. 1,000/-. Initially deposits should be made only in multiples of Rs. 100/-. Renewals can be made in any amount.

3. Callable Fixed Deposits: It is a principal protected deposit which offers a fixed coupon rate and can be early terminated at the bank’s discretion. Investors get higher interest rate than that available on traditional time deposits and 100% capital protection at maturity.

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INVESTMENT OBJECTIVES 

Company fixed deposits suitable for an increase in investment:-

A Company/NBFC Fixed Deposit provides for faster appreciation in the principal amount than bank fixed deposits and post-office schemes. However, the increase in the interest rate is essentially due to the fact that it entails more risk as compared to banks and postoffice schemes.



Company fixed deposits suitable for income:-

Company/NBFC Fixed Deposits are suitable for regular income with the option to receive monthly, quarterly, half-yearly, and annual interest income. Moreover, the interest rates offered are higher than banks.



company deposit protect against inflation:-

A Company/NBFC Fixed Deposit provides you with limited protection against inflation, with comparatively higher returns than other assured return options.



Borrow against a company fixed deposit:-

You can borrow against a Company/NBFC Fixed Deposit from banks, but it depends on the credit rating of the company you have invested in. Moreover, some NBFCs also offer a loan facility on the deposits you maintain with them.

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Investment Drawbacks:



Company fixed deposits are unsecured instrument while company become bankrupt:-

Company Fixed Deposits are unsecured instruments, i.e., there are no assets backing them up. Therefore, in case the company/NBFC goes under, chances are that you may not get your principal sum back. It depends on the strength of the company and its ability to pay back your deposit at the time of its maturity. While investing in an NBFC, always remember to first check out its credit rating. Also, beware of NBFCs offering ridiculously high rates of interest. 

No guarantee of returns of company fixed deposits if stock markets are down:-

If the Company/NBFC goes under, there is no assurance of your principal amount. Moreover, there is no guarantee of your receiving the regular-interval income from the company. Inflation and interest rate movements are one of the major factors affecting the decision to invest in a Company/NBFC Fixed Deposit. Also, you must keep the safety considerations and the company/NBFC's credit rating and credibility in mind before investing in one. 

Company FD cannot be sold in the secondary market:-

A company/NBFC Fixed Deposit can only be encased at the Company/ NBFC it was invested in.

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How can invest in company Fixed Deposits? Investor has to fill the application form completely and assure that all the columns should be filled up carefully, neatly and sign on every correction if any. After filling the form, investor should join the cheque favoring the COMPANY NAME and crossed “Account Payee only “should be deposited with particular bank mentioned by the F.D.Department. If investor has not particular bank account, he or she can send demand draft directly to F.D. Department of Company.



BUYING, SELLING, AND HOLDING

How can buy Company Fixed Deposit? Company Fixed Deposits forms is available through various broking agencies or directly with the companies. Similar is the case for the NBFCs. Some of the options available are: -- Monthly income deposits, where interest is paid every month. -- Quarterly income deposits, where interest is paid once every quarter. -- Cumulative deposits, where interest is accumulated and paid along with the principal at the time of maturity. -- Recurring deposits, similar to the recurring deposits of banks.

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The minimum investment for Company Fixed Deposit:Minimum investment in a Company/NBFC Fixed deposit varies from company to company. Normally, the minimum investment is Rs 5,000. For individual investors, there is no upper ceiling. In case of recurring deposits, the minimum amount is normally Rs 100 per month.

Duration of he Company Fixed Deposit Scheme:Company/NBFC Fixed Deposits have varying duration; they may vary from a minimum of 6 months to 5 years or even more.

Determination of Market Value of Company Fixed Deposit Company/NBFC Fixed Deposits do not have a market value since they can't be sold or purchased in the secondary market.

OBJECTIVES OF FIXED DEPOSITS 

Guaranteed return of Principal amount:-

Here in both the cases, may it be fixed deposit or fixed deferred annuity, security of the investment is the key feature. In case of fixed S.K.S.B.M. PATAN 61

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deposits principal amount is guaranteed by the government. In case where the amount is huge one may exercise the option of risk cover while getting into the contract with the banking institution. Deferred fixed annuities are not as secure as the fixed deposits with the banks as they are not guaranteed by the government, but the risk feature remains very low as the company provides the customer with full insurance cover. Even in the INDIA, the annuities are not guaranteed by the government as it is the case with fixed deposits up to a certain limit. Fixed deferred annuities are solely reliable on the smooth running of the companies business. So while fulfilling your security objective you must keep in view the financial reliability of the company so that you do not get into contract with a poor performing company.

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Short term investment :-

Considering that the time frame that one needs to invest for is short in nature then investing in fixed deposits will prove a better investment as accumulation here will be more than the deferred annuity plans. Fixed deferred annuity plans in there beginning years require lot of expenditure in there proper allocation and processing so they do not give attractive returns to the short term investors. Fixed deposits are ideal in short term as they have maturity period ranging from a single month to a couple of years.

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Long term investment :-

Deferred fixed annuity is certainly a specialized product offering for a long term investor as the accumulation structure suits to the retirement needs. These annuity plans are flexible during the payout, in some plans the annuity is paid to the legal heirs or the nominee for his/her lifetime even after the death of the contract holder. S.K.S.B.M. PATAN 62

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Interest Return on investment :-

fixed deposits may offer a specified rate of interest for a fixed period of time but the rates cannot remain the same forever, rates do change as per the real market scenario and the policy decisions on a continues basis. No institution guarantees the renewal interest rates, generally for shorter durations low rates are offered than the long term contracts in case of fixed deposits. As far as deferred annuity plans are concerned there is a fixed minimum payout which is guaranteed by the insurer for the initial few years after which the accumulation depends on the performance of the fund in the market. In case of fixed annuity plans the rate of interest to be returned to the investor keeps on fluctuating as per the market condition after the initial lock-in period which guarantees the rate of return.

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Tax Savings:-

When income tax becomes the cause of concern, it is suggested for an investor to go for fixed rate deferred annuity plans as the tax is also calculated on the deferred date and the interest is accumulated for the complete term till maturity. On the other hand income tax is charged simultaneously on the fixed deposits. Other important factors which should be considered by an investor while selecting his investment instrument are Liquidity options, distribution options on maturity and one must also read and understand the offer document with utmost clarity.

BENEFITS OF FIXED DEPOSITS 

Safety:-

Fixed Deposit is virtually risk-free. The initial sum of money that you invest is returned to you with interest when Fixed Deposit matures and the interest rate is guaranteed. With other types of investments, S.K.S.B.M. PATAN 63

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interest rates may fluctuate and your initial investment amount is usually not guaranteed 

Regular Income:-

Fixed deposits earn fixed interest rates for their entire tenure, which is usually compounded quarterly. So, those who want an income on a regular basis can invest into fixed deposits and use the interest rate as their income. This makes a fixed deposit very popular way of investing money for retirees. 

High Return compare than traditional savings:-

Fixed Deposits generally give you a higher rate of interest than traditional savings accounts, and the rates that offer are competitive.



Saves tax:-

With the directives of the income tax department stating that investment in fixed deposits up to a maximum of Rs.100,000 for 5 years are eligible for tax deductions under section 80 C of income tax act, fixed deposits have again become popular. Fixed deposits save tax and give high returns on invested money.

 Easy Withdrawal:The option to withdraw the deposit at any time before maturity without any difficulty and you can get loans up to 85% of the principal.

DRAWBACKS OF FIXED DEPOSITS



Lower rate of returns compare with Stock Market:-

While the money invested in stock markets may give you a return of S.K.S.B.M. PATAN 64

MOTILAL OSWAL SECURITIES LTD.

20% the fixed deposits will yield only about 10%. So, the money grows slowly in the case of fixed deposits. A fixed deposit won't give you the same returns that you may get in the stock markets. For instance a stock-portfolio may raise 20-30 per cent in a good year whereas a fixed deposit typically earns only 7-10 per cent. 

Taxes: -

The interest earned on fixed deposits is fully taxable and is added to the annual income of the individual. Gains from stocks are considered capital gains while dividends are tax free. 

Rising inflation can wipe out the interest benefits:-

The actual benefits or income from fixed deposit can be annulled by a rising inflation. Suppose the inflation which is currently at 3 % rises to about 6%, your fixed deposit at 10% annual return will effectively yield only(10%-6%) = 4% of return. This return would have been (10% -3%) = 7% if the rate of inflation had not changed. This can drastically eat into your fixed deposit income.

S.K.S.B.M. PATAN 65

MOTILAL OSWAL SECURITIES LTD.

S.K.S.B.M. PATAN 66

MOTILAL OSWAL SECURITIES LTD.

OBJECTIVES OF RESEARCH  The main objective of this project is concerned with getting the opinion of people regarding fixed deposits and what they feel about availing the services of financial advisors.  I have tried to explore the general opinion about fixed deposits. It also covers why/ why not investors are availing the services of financial advisors.  Along with it a brief introduction to India’s largest financial intermediary, MOTILAL OSWAL SECURITIES LTD. has been given and it is shown that how they operate in fixed deposit department.

SUB- OBJECTIVES            

Which income class people prefer fixed deposit? Why they prefer fixed deposit? Which option they choose alternate of fixed deposit? How much they aware of Fixed deposit? How many AMC provide fixed deposit service? Which professional people select fixed deposit? What problems faced when choose fixed deposit? What benefit they take from fixed deposit? What factors they take mind, when invest money in Fixed deposit? What is their objective to invest their money in fixed deposit? Are they agree with Fixed deposit is safe than other? Are they agreeing with fixed deposit giving more return than other securities?

S.K.S.B.M. PATAN 67

MOTILAL OSWAL SECURITIES LTD.

SCOPE OF THE STUDY The research was carried on in the Western Region of India. It is restricted to Mehsana where it has got 3 branch offices. I have visited people randomly nearby my locality, small retailers, doctors, customers of MOSL, Business Persons, Government Servant, etc.

DATA SOURCES Research is totally based on primary data. Secondary data can be used only for the reference. Research has been done by primary data collection, and primary data has been collected by interacting with various people. The secondary data has been collected through various journals and websites and some special publications of MOTILAL OSWAL SECURITIES LTD.

S.K.S.B.M. PATAN 68

MOTILAL OSWAL SECURITIES LTD.

SAMPLING Sampling procedure: The sample is selected in a random way, irrespective of them being investor or not or availing the services or not. It was collected through mails and personal visits to the known persons, by formal and informal talks and through filling up the questionnaire prepared. The data has been analyzed by using the measures of central tendencies like mean, median, mode. The group has been selected and the analysis has been done on the basis statistical tools available. Sample size: The sample size of my project is limited to 116 only. Out of which only 82people attempted all the questions. Other 34 not investing in Fixed Deposits attempted only 2 questions. Sample design: Data has been presented with the help of bar graph, pie charts, line graphs etc. Limitation: Time limitation. Research has been done only at Mehsana. Some of the persons were not so responsive. Possibility of error in data collection.  Possibility of error in analysis of data due to small sample size.    

S.K.S.B.M. PATAN 69

MOTILAL OSWAL SECURITIES LTD.

METHODOLOGY

After joining the Motilal Oswal Securities Ltd., we got basic knowledge about the company and the function of the company. Company provides basic training of Fixed Deposit along with other services such like Mutual Funds, Portfolio Management Services, IPOs, E- Broking, and Depositary Services. Company arranges Seminars for giving information and trainings about it services. After taken basically training, doing the survey of awareness of Fixed Deposit Service is to prepare the questionnaire. The questions for the questionnaires are prepared after going through pamphlets, research reports, fact sheets of Fixed Deposits. By the questionnaires, data about the Fixed Deposits are to be collected. To fill the questionnaires the survey was conducted in commercial area of Mehsana city. The source for filling questionnaires are doctors, customers of MOSL, Business Persons, Government Servant, my locality,, small retailers interested in equity and Fixed Deposit or invest huge in debt or real assets business etc. After collection of the data, the questionnaires are analyzed and the people who are interested in Fixed Deposits are found out. We got the information about the above interested persons and contact them by the Phones and personal meetings. We explain them about FDs and receive their Feedbacks. In the last, we prepare the project what have done practically & give the conclusion.

S.K.S.B.M. PATAN 70

MOTILAL OSWAL SECURITIES LTD.

The Respondents of the Questionnaire The sample size of my project is limited to 116 only. Out of which only 82people attempted all the questions. Other 34 not investing in Fixed Deposits attempted only 2 questions.

TABLE-5

S.K.S.B.M. PATAN 71

No Name 1 Tarunbhai .A. Panchal MOTILAL OSWAL SECURITIES 2 Dipak NayakLTD. 3 Hiteshbhai Gajjar 4 Rajkishan Aggrawal 5 Mehulbhai Suthar 6 Shaileshbhai B Prajapati 7 Natubhai B Raval 8 Hirenbhai R Sathavara 9 Dilipbhai B Nayee 10 Rakesh M Yogi 11 Jayram N Desai 12 Vishal V Prajapati 13 Suresh N Limbachiya 14 Haresh P Panchal 15 Himanshu. N Patel 16 Jayanti Bhai. G. Patel 17 B.K.Patel 18 R.D.Joshi 19 S.V.Patel 20 S.P.Parmar 21 R.M.Thakor 22 Dharesh Sukhdiya 23 Rohit Bhai.B. Chaudhari 24 BHARAT Bhai Modi 25 Vishnu Bhai. A. Patel 26 Jayanti Bhai. P.Patel 27 Nitin Bhai. C. Patel 28 Vitthal Bhai M. Patel 29 Praveen Kumar. J. Patel 30 Mahesh Kumar. N. Soni 31 Mahendra. T Gohil 32 Bhavesh. D.Gohil 33 Mohammad Hanif 34 Hasmukh Bhai. J Patel 35 Govindv Bhai. J. Patel 36 Amrat Bhai. M. Gajjar 37 Vijay. G. Parmar 38 Jayesh Kumar. A.Patel 39 Kirit Kumar. D.Patel 40 D.I.Modi 41 Satish Gheewala 42 Vadi Lal. R. Patel 43 Chiman Bhai. B. Prajapati 44 Prashant. S.PATEL 45 Soma Bhai Magan Bhai Oza 46 Kanti Lal L. Prajapati

Contact No 9724474746 9925968128 9909469591 9427491994 9924992426 9427847807 9277206344 9904150958 9924189132 9099413223 9979107033 9228290886 9974956634 9924810793 9426395403 9924079680 9925305522 Nil 9979930219 nil 9924418267 9727596592 9925504522 9426530817 9727908072 9428008263 9979568817 9898986114 9904719200 9327043204 9723641525 9723778465 9824719809 9428955580 9925651516 9898743264 9898127398 9979923057 9979518898 9824135278 9377220772 9998813952 9909495634 9925457130 S.K.S.B.M. PATAN 72 9979628249 9898281332

MOTILAL OSWAL SECURITIES LTD.

S.K.S.B.M. PATAN 73

MOTILAL OSWAL SECURITIES LTD.

S.K.S.B.M. PATAN 74

MOTILAL OSWAL SECURITIES LTD.

QUSTIONNAIRE

Conditions: 1.This questionnaire is used only for project requirement. 2. All the questions must attain compulsory. 3. Please tick [√] where needed. 4. All information provided by you is only for education purpose and will be kept confidentially.

1. Have you know about Motilal Oswal Securities Ltd.? Yes [ ]

No [ ]

If not, Our services 1) Stock Market 2) Fixed deposit 3) Equity 4) PMS 5) Commodity Broking 6) E- Broking 7) Depository 8) Fixed Deposits and Bonds

S.K.S.B.M. PATAN 75

MOTILAL OSWAL SECURITIES LTD.

If yes, How did you know about it? 1) Pamphlet

[ ]

2) T.V.

[ ]

3) News Paper

[ ]

4) By Friend Circle

[ ]

5) By society

[ ]

6) Other ………………………………..

2. Have you invested /are you interested to invest in fixed deposits? Yes [ ] No [ ] If Yes, 3. Which are the most important factors for selecting Fixed Deposits to investment? 1) Higher Return 2) Low Risk 3) Easy to Invest 4) Other If No, 4. What is the most important reason for not investing in fixed deposits? Lack of knowledge about fixed deposits [ ] Enjoys investing in other options [ ] Its benefits are not enough to drive you for investment [ ] No trust over the FD managers [ ] 5. Are Fixed Deposits safe for investment rather than Security market? Strong Agree Agree Neutral Disagree

[ [ [ [

] ] ] ] S.K.S.B.M. PATAN 76

MOTILAL OSWAL SECURITIES LTD.

Strong Disagree

[ ]

6. Does Fixed Deposits give more return than other? Strong Agree Agree Nutural Disagree Strong Disagree

[ ] [ ] [ ] [ ] [ ]

7. Where do you find yourself as a fixed deposit investor? Totally ignorant [ ] Partial knowledge of fixed deposits [ ] Aware only of any specific scheme in which you invested [ ] Fully aware [ ] 8. Where from you purchase fixed deposits? Directly from the AMCs Brokers only Brokers/ sub-brokers Other sources

[ [ [ [

] ] ] ]

9. Which feature of the fixed deposits allure you most? Diversification [ ] Professional management [ ] Reduction in risk and transaction cost [ ] Helps in achieving long term goals [ ] 10. According to you which is the most suitable stage to invest in fixed deposits? Young unmarried stage [ ] Young Married with children stage [ ] S.K.S.B.M. PATAN 77

MOTILAL OSWAL SECURITIES LTD.

Married with older children stage [ ] Pre-retirement stage [ ] 11. How many time periods you would like to invest in Fixed Deposit? 6 Months 1 Year 2 Years 3 Years More than 3 Years

[ ] [ ] [ ] [ ] [ ]

12. What is your Monthly Income? 5000-10000 Rs. [ ] 10001-15000 Rs. [ ] 15001-20000 Rs. [ ] 20001-25000 Rs. [ ] 25001-30000 Rs. [ ] 30001-35000 Rs. [ ] 35001-40000 Rs. [ ] 40001-45000 Rs. [ ] More than 45000 Rs. [ ] 13.

PERSONAL INFORMATION:-

Name: ……………………………………………………………………… Address: ……………………………………………………………………... Phone/Mobile: ………………………………………………………………. Occupation: …………………………………………………………………………….. Businessman

[ ]

Student

[ ]

Job/ Service

[ ]

Dealing in Shares only

[ ]

Other then please specify ______________________

“Thanks for Giving Your Precious Time” S.K.S.B.M. PATAN 78

MOTILAL OSWAL SECURITIES LTD.

DATA ANALYSIS AND INTERPRETATION 1. Have you know about Motilal Oswal Securities Ltd.?

TABLE-6 Reply YES NO Total

Respondents 82 34 116

Percentage (%) 70.68% 29.32% 100%

CHART-3 Respondents

YES, 82, 71% YES NO NO, 34, 29%

INTERPRETATION: Above graph shows that 82 respondents know about Motilal Oswal Securities Ltd. and 34 are not familiar than the MOSL from total number of respondents 116.We can say that 70.68% people are know the services provided by MOSL and 29.32 % do not know about MOSL. So company should explain them about itself and its services. .

S.K.S.B.M. PATAN 79

MOTILAL OSWAL SECURITIES LTD.

1.1

How did you know about it?

TABLE-7 Sources

Respondents

Pamphlet

15

T.V.

30

News paper

43

By Friend Circle

08

By Society

06

Other

14

Total

116

CHART-4 Information

Pamphlet 45 40 35 30 25 Respodents 20 15 10 5 0

T.V. New s paper By Friend Circle Respodents Sources

By Society Other

INTERPRETATION: On analyzing the Questionnaires, They show that in total of 116, 15 people are aware about the company through pamphlet , 30 are through TV , 43 through news paper, 6 are by society and o remain 14 are aware about company through other sources .

S.K.S.B.M. PATAN 80

MOTILAL OSWAL SECURITIES LTD.

2. Have you invested /are you interested to invest in fixed deposits?

TABLE-8

Scale YES NO

Respondents 67 49

Percentage (%) 57.75 % 42.25 %

CHART-5 Respondents

NO, 49, 42% YES, 67, 58%

YES NO

INTERPRETATION: In survey I found that most of people of Mehsana city invest in fixed deposit.57.75 % people investing in fixed deposit. Only 42.25% people don't investing in fixed deposit. This shows that the market of Mehsana city is potential; due to this reason most of company going to launch its branch in Mehsana city.

S.K.S.B.M. PATAN 81

MOTILAL OSWAL SECURITIES LTD.

3. Which are the most important factors for selecting Fixed Deposits to investment?

TABLE-9 Scale HIGHER RETURN LOW RISK EASY TO INVEST OTHER TOTAL

Responde nt 35 26 14 07 82

Percentage (%) 42.68% 31.70% 17.07% 8.55% 100%

CHART-6 40 35

42.68%

30

31.70%

25 20

Percentage (%)

35

15

26

10

14

5 0

HIGHER RETURN

LOW RISK

Respondent

17.07%

EASY TO INVEST

8.55% 7 OTHER

INTERPRETATION: S.K.S.B.M. PATAN 82

MOTILAL OSWAL SECURITIES LTD.

Most of investors like High Return from the FD and it are 42.68%. 31.70% people like FD due to low risk. 17.07 % people like FD in easy to invest. Only 8.55% people like FD for other reasons. Above graph shows that the high return of FD is more liked by investors. Actually FD gives more return than any other investment. FD gives approximately minimum 25 % return.

S.K.S.B.M. PATAN 83

MOTILAL OSWAL SECURITIES LTD.

4. What is the most important reason for not investing in fixed deposits?

TABLE-10 Scale Lack of knowledge about fixed deposits Enjoys investing in other options Its benefits are not enough to drive you for investment No trust over the FD managers TOTAL

Responde nt 40

Percentage (%) 48.78%

15

18.29%

6

7.32%

21

25.61%

82

100%

CHART-7

S.K.S.B.M. PATAN 84

MOTILAL OSWAL SECURITIES LTD.

Factor Lack of knowledge about fixed deposits 21 40 6 15

Enjoys investing in other options Its benefits are not enough to drive you for investment No trust over the FD managers

INTERPRETATION: Most of investors have a problem face when investment time. 48.78 % people face a problem of Lack of knowledge about fixed deposits. Then 18.29 % Enjoys investing in other options .Other 7.32 % investor believe that its benefits are not enough to drive them for investment. 25.61 % people have not trust over the FD Managers. 5. Are Fixed Deposits safe for investment rather than Security market?

TABLE-11 Scale STRONGLY AGREE AGREE NUTURAL DIS AGREE STRONGLY DIS AGREE TOTAL

Responden t 35 24 17 4 2 82

Percentage (%) 42.68% 29.27% 20.73% 4.88% 2.44% 100%

CHART-8

S.K.S.B.M. PATAN 85

MOTILAL OSWAL SECURITIES LTD.

42.68% 29.27% 35

4.88% 4

EE

2.44% 2

AG R

EE IS

AG R

ST

ST

RO N

RO N

G LY

D

DI S

TU RA L

E

Respondent

17

NU

AG RE

G LY

AG RE

Percentage (%) 20.73%

24

E

40 35 30 25 20 15 10 5 0

INTERPRETATION: People are fully agreed that FD is right way for Investment to get constant benefits. They all are aware about FD. They also agree that fixed deposit gives constant return. Here 42.68 % people said that they are strongly agree that FD is safe for investment & 29.27 % persons are agree that only FD is right way to for investment in stock market. While 4.88 % people said that they are disagree and only 2.44 % people said that they are strongly disagree with fixed deposit is safe for investment. 6. Does Fixed Deposits give more return than other?

TABLE-12 Scale STRONGLY AGREE AGREE NUTURAL DIS AGREE STRONGLY DIS AGREE TOTAL

Responde nt 31 21 24 3 3 82

Percentage (%) 38% 27% 29% 3% 3% 100%

CHART-9 S.K.S.B.M. PATAN 86

MOTILAL OSWAL SECURITIES LTD.

RETURN 38%

Respondent

24 3% 3

3% 3 STRONGLY DIS AGREE

AGREE

21

Percentage (%)

DIS AGREE

31

29%

NUTURAL

27%

STRONGLY AGREE

35 30 25 20 15 10 5 0

INTERPRETATION: People are fully agreed that fixed deposit gives more return 38% strongly agree. Then 27% are agreeing with more return then other investment. While 3% people are strongly disagreeing with fixed deposit gives more return. People in 29% are neutral for more return gives a fixed deposit.

S.K.S.B.M. PATAN 87

MOTILAL OSWAL SECURITIES LTD.

7. Where do you find yourself as a fixed deposit investor?

TABLE-13 Scale Totally ignorant Partial knowledge of fixed deposits Aware only of any specific scheme in which you invested Fully aware Total

Responde nt 17 34 23 08 82

CHART-10

Respondent 40 35 30 25 20 15 10 5 0

34 23 17

Respondent 8

Totally ignorant

Partial Aware only of Fully aware knowledge of any specific fixed deposits scheme in which you invested

INTERPRETATION: S.K.S.B.M. PATAN 88

MOTILAL OSWAL SECURITIES LTD.

When ask this question, from 82 people, 17 people does not know to invest in the fixed deposits. Who have partially knowledge about FD, they are 34 people.23 people are aware about the some special scheme because they invest their money in it. Only 8 people from the respondents has fully aware about the fixed deposits. This shows that if companies try to aware people about FDs, they are been ready to invest in FD.

S.K.S.B.M. PATAN 89

MOTILAL OSWAL SECURITIES LTD.

8. Where from you purchase fixed deposits?

TABLE-14 Scale

Responde nt 55 12 7 8 82

Directly from the AMCs Brokers only Brokers/ sub-brokers Other sources TOTAL

Percentage (%) 68% 15% 8% 9% 100%

CHART-11 Purchase

7

8 Directly from the AMCs Brokers only Brokers/ sub-brokers

12 55

Other sources

INTERPRETATION: When ask the question, from where did you purchase FD, 68 % people reply directly from the AMCs.15% reply from broker only, 8% reply from broker/ sub brokers and the remain 9 % people answered that from other sources.

S.K.S.B.M. PATAN 90

MOTILAL OSWAL SECURITIES LTD.

9. Which feature of the fixed deposits allure you most?

TABLE-15 Scale Diversification

Responden t 44

Percent age (%) 53.65%

15 19

18.29% 23.18%

4

4.88%

82

100%

Professional management Reduction in risk and transaction cost Helps in achieving long term goals TOTAL CHART-12 features 50 45 40 35 30 25 20 15 10 5 0

44

15

Respondent

19 4

Diversification Professional Reduction in Helps in management risk and achieving long transaction term goals cost

INTERPRETATION: On asking the above question,from82 respondents, 44 replied that they liked the diversification of FD.15 answers were about professional management .Low risk and low transaction cost allured 19 people and 4 people replied that FD helps them to achieve long term goals. Percentages about the answers are respectively53.65 %, 18.29 %, 23.18 %and 4.88 %.

S.K.S.B.M. PATAN 91

MOTILAL OSWAL SECURITIES LTD.

10.How many time periods you would like to invest in Fixed Deposit?

TABLE-16 Scale

Responden t 32 27 10 9 4 82

6 Months 1 Year 2 Years 3 Years More than 3 Years Total

Percentage (%) 39.02% 32.93% 12.20% 10.98% 4.87% 100%

CHART-13 Respondent

4

9

32

10

6 Months 1 Year 2 Years 3 Years

27

More than 3 Years

INTERPRETATION: People who are want to invest in long time they have two main options that whether hold with one fixed deposit scheme with short term or long term. I am found that 39.02 % persons are investing six months investment. 32.93 % people want to investment in one year. 12.20% want to two and 10.98% to three years investment. More than three year only 4.87 % want to invest in fixed deposit.

S.K.S.B.M. PATAN 92

MOTILAL OSWAL SECURITIES LTD.

11.What is your Monthly Income?

TABLE-17 Income Level 5000-10000 10000-15000 15000-20000 20000-25000 25000-30000 30000-35000 35000-40000 40000-45000 > 45000 Total

Respondent 46 26 16 5 3 1 0 1 2 100

Percentage (%) 46% 26% 16% 5% 3% 1% 0% 1% 2% 100%

CHART-14

S.K.S.B.M. PATAN 93

MOTILAL OSWAL SECURITIES LTD.

Income

Income 50 45 40 35 30 25 20 15 10 5 0

46 5000-10000 10000-15000 15000-20000

26

20000-25000 25000-30000

16

30000-35000 5

3

35000-40000 1

0

1

40000-45000

Respondent

INTERPRETATION: Most of investors of Mehsana city are of 5000 - 10000 Rs. income level. Second level of income is 10000-15000. Total quantity of its invests is 54 % with good income. It shows that the market of Mehsana is really potential for securities market. HYPOTHESIS TEST Test-1: whether 55% of People in Survey are aware about the company Fixed Deposits. p = 0.55

q = 0.45

n = 116

α = 0.10

p1= 67/116 =0.5775

HYPHOTHESIS: H0: p=0.55 (55% of People in Survey are aware about the company Fixed Deposits) H1: p≠0.55 (55% of People in Survey are aware about the company Fixed Deposits)

σ^x = √ (PQ/N) = √ {(0.55) (0.45)/ 116}

= √0.002133 = 0.04619

S.K.S.B.M. PATAN 94

MOTILAL OSWAL SECURITIES LTD.

UL/LL = P ± σ * z Lower Limit = 0.55 - (0.04619) (1.96) = 0.4594 Upper Limit= 0.55 + (0.04619) (1.96) = 0.6405 45.0% Z Corresponding value = 1.645

Rejection region 5%

Acceptance region

Rejection region

45%

5%

LL = 0.4594 0.55 p1 =0.5775

45%

UL = 0. 0.6405

Here, the sample mean P1=0.5775 lie on Acceptance region. so we accept the null hypothesis and reject the alternative hypothesis. So we can say that 55% of People in Survey are aware about the company Fixed Deposits.

Test-2 whether more than 50% Investors believe that FDs are safe for investment rather than other securities of company? p = 0.50 q = 0.50 n = 116 α = 0.10 Total agree= 35+24 =59 P1 = 0.5086 H0: P=0.50 (50% people believe FDs are safe for Investment.) H1: P>0.50 (More than50% people believe FDs are safe for Investment.)

σ^x = √ (PQ/N) = √ [(0.50) (0.50)/ 116]

= √0.002155 = 0.04642 S.K.S.B.M. PATAN 95

MOTILAL OSWAL SECURITIES LTD.

Upper limit = P + σ *z = 0.50 + (0.04642) (1.64) = 0.5761

Acceptance region is 45 %. So Z Corresponding value = 1.64

Acceptance Region 45%

0.50

p1

Rejection Region 5%

0.5761

Here, the sample mean P1=0.5086 which lie on Acceptance region. so we accept the null hypothesis. So it is proved more than 50% Investors believe that FDs are safe for investment rather than other securities of company.

S.K.S.B.M. PATAN 96

MOTILAL OSWAL SECURITIES LTD.

S.K.S.B.M. PATAN 97

MOTILAL OSWAL SECURITIES LTD.

SWOT Analysis STRENGTH  A large network is one of the most plus point of Motilal Oswal Secu. Ltd.  The leadership of Motilal Oswal Secu. Ltd is also very good.  The Research Team of Motilal Oswal Secu. Ltd is very powerful. FD is totally dependent on the research work so it is very beneficial for the FD.  The service provided to customers by Motilal Oswal Secu. Ltd is also good  The company’s total turnover is very high  The return given to customers on their investment is high  The company has good and experience dealers also  The technology used by Motilal Oswal Secu. Ltd is very advanced.

WEAKNESS  There is over staffing in company. So many times some of employees have no work and this effects on their moral for work and wastage of time also.  The time management of company is not proper.  Lack of proper co-ordination between two departments of the company.

S.K.S.B.M. PATAN 98

MOTILAL OSWAL SECURITIES LTD.

OPPORTUNITY

 The Security market of Mehsana is very potential.  The company has huge database of HNI customers, so company can take benefit for its services special for FD.  In Mehsana city there is only one branch of Motilal Oswal. Due to this reason the investors of the other side of Mehsana can not take the more benefit of it. So company can make its other branch at the other part of Mehsana also.  The growth of clients in company is constant.  The place where the company is situated is a a very famous corporate place so it is beneficial for the company.  Company arranges seminars regularly for the increasing awareness about the services and its new products.

THREAT  The company has to face a cut throat competition  Rules and regulation of government of India are also very tuff  The increment in new competitors of company with new technology is also very fast.

S.K.S.B.M. PATAN 99

MOTILAL OSWAL SECURITIES LTD.

RESEARCH FINDING AND CONCLUSION  At the survey conducted upon 116 people, 67 are already fixed deposit investors or are interested to invest in future and the remaining 49 are not interested in it. So there is enough scope for the advisors to convert those 49 participants into investors through their convincing power and great communication skills.  Now, when those 49 people were asked about the reason of not investing in fixed deposits, then most of the people held their ignorance responsible for that. They lacked knowledge and information about the fixed deposits. Whereas just 15 people enjoyed investing in other option. For 6 people, the benefits arousing from these investments were not enough to drive them for investment in FDs and 21 people expressed no trust over the fund managers’ decision. Again the financial advisors can tap upon these people by educating them about fixed deposits.  Out of the 116 persons who already have invested in fixed deposits/ are interested to invest, only 17 have sound knowledge of FDs, 23 people are aware of only the schemes in which they have invested. 34 possess partial knowledge whereas 8 stands nowhere in knowledge about FDs.  55 participants buy forms directly from the AMCs, 12 from brokers only, 7 from brokers and sub-brokers even then 8 people buy from other sources. The brokers and sub brokers have the maximum

S.K.S.B.M. PATAN 100

MOTILAL OSWAL SECURITIES LTD.

reach so they should try to make those investors aware f the happenings, even the AMCs should follow it.

 When asked about the most alluring feature of FDs, most of them opted for diversification, followed by reduction in risk, helps in achieving long term goals and helps in achieving long term goals respectively.  Market is potential but only few people investors know about the FD services.  The company has no any expert person for the marketing of FD the Company’s Tips are highly demanded.  People want to invest in FD but they are afraid about risk and high amount of FDs  35% people are not investing in fixed deposit because they believe in self manage of fund.  Mostly people says that FD gives more return and safe other security.  People are more interested in investing in FD than other investment.

S.K.S.B.M. PATAN 101

MOTILAL OSWAL SECURITIES LTD.

Recommendations The most vital problem spotted is of ignorance. Investors should be made aware of the benefits. Nobody will invest until and unless he is fully convinced. Investors should be made to realize that ignorance is no longer bliss and what they are losing by not investing. Fixed deposits offer a lot of benefit which no other single option could offer. But most of the people are not even aware of what actually a fixed deposit is? They only see it as just another investment option. So the advisors should try to change their mindsets. The advisors should target for more and more young investors. Young investors as well as persons at the height of their career would like to go for advisors due to lack of expertise and time. The advisors may try to highlight some of the value added benefits of FDs such as tax benefit, rupee cost averaging, and systematic transfer plan, rebalancing etc. these benefits are not offered by other options singlehandedly. So these are enough to drive the investors towards fixed deposits. Investors could also try to increase the spectrum of services offered. Now the most important reason for not availing the services of advisors was spotted was being expensive. The advisors should try to charge a nominal fee at the beginning. But if not possible then they could go for offering more services and benefits at the existing rate. They should also maintain their decency and follow the code of ethics so that the investors could trust upon

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them. Thus the advisors should try to attract more and more persons and turn them into investors and finally their clients.

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BIBLIOGRAPHY

WEB SITES: www.motilaloswalsecurities.com www.njindiainvestment.com www.nseindia.com www.bseindia.com

SEARCH ENGINE: Google Yahoo JOURNALS & OTHER REFERANCE Motilal Oswal Secu. Ltd. – Manuals Njindiainvestment – Manual The Economic Times

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