INDEX

Sr. No. Title Page No.

1. Executive summary 2

2. Internship objectives 3

3. Introduction to the topic 4-6

3.1 What is trading and how does it works

3.2 What is offline trading
3.3 What is online trading
3.4 How does online trading work
3.5 Difference between online and offline trading
4. About Motilal Oswal Financial Services ltd 7-8

4.1 History and Overview – MOFSL Group

4.2 Subsidairies of MOFSL

5. Products and services offered by MOFSL 9-13

6. Literature review 14-15

7. Journey at Motilal Oswal Financial Services Ltd. 16-21

7.1 Demat account and Trading account
7.2 Candlesticks
7.3 Fundamental analysis
7.4 Technical analysis
7.5 Ratio analysis
7.6 Market Indicators
7.7 Mutual funds and derivatives
7.8 Challenges faced during generating leads for demat
accounts
8. Swot analysis 22

9. Major competitors 23-25

9.1 Sharekhan
9.2 Indiabulls
9.3 Angel One

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10. Research methodology 26-27

10.1 Objective of the study

10.2 Research Methodology

10.3 Scope of the study

10.4 Limitations of the study

11. Data collection and analysis 28-37

Results

12. Conclusion 38

13. Annexure 39-43

14. An assessment of the internship 44

15. Bibliography 45

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 EXECUTIVE SUMMARY

The project with Motilal Oswal Financial Services Limited sheds light on how online and
offline trade markets work and how they are satisfying their investors. It aims at studying the
investor’s perception of online and offline trading in share market and helps to find out
accessing the present level of service provided by identifying the areas which require attention
for improving its services.
The emergence of information technology has opened a new era of investment opportunities.
Among the popular innovation, online trading services have attracted large number of investors
as well as new capital into the global financial markets, thanks to the convenience of on-line
trading facilities, the availability of on-line investment information and the associated
reduction of transaction costs. Investors can trade more cheaply whenever and wherever they
want in this new era. In this project, we are going to examine the degree of importance of some
attributes which will affect the investors' choice between traditional security trading and on-
line trading. These attributes include investors" demographics, investors' attitude towards the
risk, the knowledge of the investors, cost of trading, convenience and the perceived benefits.
In the following chapters, we will discuss about the background of the on-line trading, the
difference between the traditional and on-line trading and the impacts of Information
Technology on financial market. Based on the discussion and the past study, we will develop
a methodology to test whether there is any difference in investors characteristics and perceived
value between traditional and on-line investing.
A questionnaire was prepared in order to conduct a survey where investors gave their response
regarding online and offline trading. The questionnaire is based on different parameter to judge
and understand and also determine the impact of investors attitude towards trading.
The report is further concluded using primary and secondary data which made it easy to
understand.
Primary data was collected through a survey, secondary data was collected through various
books and websites.
Objectives:
• To study the investor perception of online and offline trading towards share market.
• To evaluate the present level of services provided by online share market compared to
the offline share market.
• To determine the problem actually faced by the investors with reference to online and
offline trading system.
• To identify the current traders of online and offline trading.
• Increase transparency in the markets.
• Enhance market quality through improved liquidity by increasing quote continuity and
market depth.

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 INTERNSHIP OBJECTIVES

• To get an exposure to financial industry and stock market.

• To learn and expand my knowledge about share market and following the market.

• To understand how to analyse and manage risk.

• To learn to implement my own strategies in asset management.

• To understand and analyse the rules and regulations of stock market.

• To understand, relate and improve my skills and knowledge with the industry.

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 INTRODUCTION TO THE TOPIC

3.1 What is trading and how does it works?

The action or activity of buying and selling goods and services is called “Trading”. The term
“trading” simply means “exchanging one item for another”. We usually understand this to be
the exchanging of goods for money or in other words simply buying something.
When we talk about trading in the financial markets, it is the same principle. Think about
someone who trades shares. What they are actually doing is buying shares (or a small part) of
a company. If the value of those shares increases, then they make money by selling them again
at a higher price. This is trading. You buy something for one price and sell it again for another
hopefully at a higher price, thus making a profit and vice versa.
Traditionally, when a buyer wanted to invest money in stocks, he used to call his brokerage
firm and asked for putting in a request to buy stocks of a given company for a specified amount.
The broker would then let him know the market price of the stocks and would confirm the
order. After the user confirmed his trading account, the broker's fees and the time period
required for the order, the order would get placed on the stock exchange.
Brokers buy and sell stocks through an exchange, charging a commission to do so. A broker is
simply a person who is licensed to trade stocks through the exchange. A broker can be on the
trading floor or can make trades by phone or electronically. An exchange is like a warehouse
in which people buy and sell stocks.
A stock market is a public market for the trading of company stock and derivatives at an agreed
price; these are securities listed on a stock exchange as well as those only traded privately. The
stock market is one of the most important sources for companies to raise money. This allows
businesses to be publicly traded, or raise additional capital for expansion by selling shares of
ownership of the company in a public market.
3.2 What is offline trading?
Offline trading is when you don't buy/sell shares online. That is when you place your order to
a broker who then buys or sells them for you. Earlier when online trading facilities were not
there one had to do trading offline only. Now that everybody has access to computers and
internet people normally prefer trading online only.
There are basically three reasons behind it.
1. One that the charges for offline trading are more than online.

2. Second, there is no transparency in offline trades. Whatever the broker tells you, you have
to take it. In online trade the trade actually happens in front of you and you yourself place
the order with a price. So there is no question of transparency not being there.

3. Third, the process is very cumbersome in offline trading. In online trading since your
trading account is linked to your demat account the shares automatically get debited or
credited to your account, whereas in offline trading one has to fill up details and sign a
preprinted slip and give it to his broker if he has sold any shares so that they can get
transferred to the person who has bought them.

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3.3 What is online trading?
Online trading is the act of purchasing and selling financial products on the Internet. The trader
buys and sells using an online trading platform. Online trading may include trading in bonds,
stocks (shares), futures, international currencies, and other financial instruments.
Most people trade online through an online broker. An online broker is a brokerage firm that
offers its services on the Internet. Unlike traditional brokers, the investor does not meet the
broker face-to-face or via the telephone. Everything happens on the web.
“Online trading is basically the act of buying and selling financial products through an online
trading platform.”
Online trading is a fairly popular method of transacting in financial products online. Brokers
have gone online, with their platforms providing all kinds of financial instruments like stocks,
commodities, bonds, ETFS, and futures.
3.4 How does online trading work?
When you buy or sell a stock through online trading, you order gets executed within seconds.
But, within these seconds lots of operations take place which you are unaware, such as:
1. Your order is registered.

2. Your order is placed in a database

3. It searches for a for a seller and when both buyer and seller is matched, a confirmation
message is sent to both the parties.

4. The order and the price are reported to the regulatory bodies. These regulatory bodies
look over all the trading activities and are displayed to all the investors.

5. Your trading records are stored in case regulators want to study your past transactions.

6. A contract is sent to your broker who sold the shares and the broker who bought them.

7. After all this, the brokers have 3 days to exchange the cash and shares which is called
settlement.

8. After this process, the money or the shares are officially in your account.
Online trading platforms have taken over the entire trading landscape because of their
“Advantages”:
1. The users can open, manage and close accounts sitting at their homes, working on a device
with internet.

2. Transactions can be made much more easily.

3. Multiple financial products, which earlier needed to be bought from specific places or
banks, can now be bought and sold online, which also reduces the the role of an
intermediary and saves time.

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4. The money used is real and the user gets to analyse and choose from the various options of
stocks and products available.

3.5 Difference between online and offline trading

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 ABOUT MOTILAL OSWAL FINANCIAL SERVICES LIMITED

Motilal Oswal Financial Services Limited (MOFSL) is an Indian diversified financial services
firm offering a range of financial products and services. The company was founded by Motilal
Oswal and Raamdeo Agrawal in 1987.
The company is listed on BSE and NSE stock exchanges. MOFSL is headquartered in Mumbai
and as of March 2021, had a network spread over 550 cities and towns comprising 2500+
Business Locations operated by its Business Partners and it and 29,00,000+ customers.

4.1 History and Overview – MOFSL Group

Motilal Oswal Financial Services Ltd. (NSE: MOFSL) was founded in 1987 as a small sub-
broking unit, with just 2 people running the show. It was set up by Motilal Oswal and Raamdeo
Agrawal as a broking house in 1987.
The company entered into investment banking in 2005, followed by private equity fund in
2006. On February 2006, Motilal Oswal Financial Services Ltd. acquired Peninsular Capital
Markets, a Cochin, Kerala based broking company for Rs. 35 crore. The company tied up
with State Bank of India in 2006, Punjab National Bank in 2007 and Axis Bank in 2013 to
offer online trading to its customers.
On January 2010, Motilal Oswal Financial Services Ltd. set up Mutual fund business named
as Motilal Oswal Asset Management Company (MOAMC). On 2013, Motilal Oswal Financial
Services Ltd. laid foundation of Aspire Home Finance Corporation Limited (AHFCL). The
company offers loans for home, construction, composite, improvement, and extension in India.
Motilal Oswal Financial Services Limited (MOFSL) is a public limited company listed on BSE
and NSE. MOFSL was earlier registered as a Systemically Important Non-Banking Finance
Company registered with the Reserve Bank of India. However, the Company has surrendered
its Certificate of Registration with Reserve Bank of India
Further, pursuant to the internal restructuring of the Motilal Oswal Group of Companies, the
lending business of MOFSL has been transferred to Motilal Oswal Finvest Limited(erstwhile
Motilal Oswal Capital Markets Limited), wholly owned subsidiary of the MOFSL on August
20, 2018. Pursuant to the Amalgamation of Motilal Oswal Securities Limited with Motilal
Oswal Financial Services Limited being effective from August 21, 2018, MOFSL carries on
the business of MOSL with effect from August 21, 2018.
After receipt of SEBI approval on 05th February, 2019 on name change, MOFSL is now a
SEBI registered Trading Member registered with BSE Limited (BSE), National Stock

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Exchange of India Limited(NSE), Multi Commodity Exchange of India Limited (MCX) and
National Commodity & Derivatives Exchange Limited (NCDEX). MOFSL is now a SEBI
registered Depository Participant registered with Central Depository Services Ltd, (CDSL) and
National Securities Depository Limited (NSDL).
Hence, MOFSL will now execute transactions in capital markets/equity derivatives/commodity
derivatives/ currency derivatives segments on behalf of its clients which include retail
customers (including high net worth individuals), mutual funds, foreign institutional investors,
financial institutions and corporate clients. Besides stock broking, it also offers a bouquet of
financial products and services to its client base.
It is registered with the SEBI as Research Analyst, Investment Advisor and Portfolio Manager.
It is also registered with various other bodies / agencies like IRDA, AMFI, CERSAI, KRA
agencies (CVL, Dotex, NDML, CAMS and Karvy) Further, MOFSL, along with it's
subsidiaries, offers a diversified range of financial products and services such as loan against
shares, investment activities, private wealth management, broking and distribution, asset
management business, housing finance, institutional equities, private equity and investment
banking.
The directors of MOFSL are Mr. Motilal Oswal, Mr. Raamdeo Agrawal, Mr. Ajay Menon,
Mr. Praveen Tripathi, Mr. Vivek Paranjpe, Ms. Rekha Shah and Ms. Sharda Agarwal.
Focus on customer-first attitude, ethical and transparent business practices, respect for
professionalism, research based value investing and implementation of cutting-edge
technology have enabled it to blossom into an over 7900 member team.
Today MOFSL is a well-diversified financial services firm offering a range of financial
products and services such as Private Wealth Management, Retail Broking and Distribution,
Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity
Broking, Currency Broking, and Home Finance.
MOFSL has a diversified client base that includes retail customers (including High Net worth
Individuals), mutual funds, foreign institutional investors, financial institutions and corporate
clients.
Research is the solid foundation on which MOFSL advice is based. Almost 10% of revenue is
invested in equity research and the company hire and train the best resources to become its
advisors. At present MOFSL has 25+ research analysts’ researching over 250 companies across
20 sectors. From a fundamental, technical and derivatives research perspective, Motilal
Oswal’s research reports have received wide coverage in the media.

4.2 Subsidiaries:
• Motilal Oswal Investment Advisors Pvt Ltd
• Motilal Oswal Asset Management Co. Ltd
• Motilal Oswal Securities Ltd
• Motilal Oswal Private Equity Advisors Pvt Ltd
• Motilal Oswal Investment Services
• Aspire Home Finance Corporation Ltd.

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 4.3 PRODUCTS AND SERVICES OFFERED BY MOTILAL OSWAL
FINANCIAL SERVICES LIMITED

Following are the Services offered by MOFSL:

• Broking & Distribution

• Asset Management
• Private Wealth Management
• Home Finance
• Institutional Equities
• Private Equity
• Investment Banking

1. Broking and Distribution

“Experience Phygital Investing”
MOFSL Broking and Distribution business helps
retail customers take informed investment decisions
with a strong research based advisory service.
Clients are advised by a centralized advisory and
dealing desk based in Mumbai. With Solid
Research, Solid Advice as guiding philosophy,
services under the Broking and Distribution
business include products such as Equities, Derivatives, Commodities, Currency, Depository
Services & Distribution of Portfolio Management Services, Mutual Funds and Insurance.
Ajay Menon is the Whole-time Director & CEO - Broking and Distribution business of Motilal
Oswal Financial Services Ltd. (MOFSL).
Broking and Distribution website - [Link]

2. Asset Management Company

“Buy Right. Sit Tight”
Motilal Oswal Asset Management Company Ltd.
(MOAMC) is a public limited company
incorporated under the Companies Act, 1956 on
November 14, 2008. Motilal Oswal Asset
Management Company Ltd. has been appointed
as the Investment Manager to Motilal Oswal
Mutual Fund by the Trustee vide Investment
Management Agreement (IMA) dated May 21,
2009, executed between Motilal Oswal Trustee Company Ltd. and Motilal Oswal Asset
Management Company Ltd. Indias only 100% equity fund house with a defined investing
philosophy. A highly differentiated asset management company, offer focused mutual funds,
PMS and AIF strategies based on core competence of equity research and investing. The equity
offerings have been riding on our investment philosophy, Buy Right : Sit Tight where Buy

10
Right means buying high quality growth oriented companies at a fair price and Sit Tight means
staying invested in them over a long time to realize the full growth potential of the underlying
business. Coupled with a ‘Buy and Hold’ strategy, MOAMC endeavor to manage portfolios
with around 20-25 high conviction holdings and low portfolio churn.
Asset Management Company website - [Link]

3. Private Wealth Management

“Winning Portfolios Powered by Knowledge”

Motilal Oswal Private Wealth (MOPW) is a part

of Motilal Oswal Group – a brand that is trusted
for knowledge based investing with a proven
performance track record over 30 years. MOPW
Private Wealth business was instituted in the
year 2007 to cater to Corporates/ Institutions,
High Net Worth and Ultra High Net worth
Individuals. MOPW use knowledge to identify the right mix of Fund Managers across asset
classes to ensure a winning portfolio. MOPW offering includes products and services across
platforms and asset classes from equity, alternate, credit solutions, estate planning, will making,
property advisory to family office.

Private Wealth Management website: [Link]

4. Home Finance

“A Home Loan for Everyone”

MOHFL is a subsidiary of Motilal Oswal

Financial Services Limited (MOFSL).
MOFSL is a well-diversified, financial
services company focused on wealth creation
for all its customers, such as institutional,
corporate, HNI and retail. Motilal Oswal
Home Finance Limited (MOHFL), promoted
by the Motilal Oswal Group, provides one of the fastest turn-around times for processing
applications, enabling credit access on fair terms. Provision of value added proposition like
Property Services and Insurance Services, and best in class service for customer segments
makes MOHFL the preferred choice of over 60,000 customers in the lower middle income
segment.
The aims to touch the lives of a larger populace by allowing the LIG segment in realizing their
dreams to own their own ‘GHAR’ – a place where life is celebrated at its best – one’s own
home – one’s own shelter – one’s own space in the world. – by providing simple and fast
solution towards the Home Loan need. The company make effective use of digital solutions
including Online Housing Loans with optimum physical presence. Products and services
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offered are home loans, construction loans, home improvement loans, home extension loans,
PMAY and loan against property.
Home finance website - [Link]

5. Institutional Equities

“WorldClass Research Broking”

Motilal Oswal Institutional Equities offer a

range of institutional broking services in the
cash and derivatives segment, catering to over
740 Domestic (mutual funds, banks, financial
institutions, insurance companies) and Foreign
Institutional Investors (FIIs). Through
Corporate Access Group, MOIE bring together
global institutional investors and
corporate/thought leaders through a variety of unique forums and platforms viz. Investor
Conferences, Road Shows, Customized Itineraries, Macro inputs through interactions with
Domain Experts and Policy Makers and Field Visits.

5. Private Equity

“Partnership Meets Entrepreneurship”

Our Private Equity business was founded with a

vision to become the most respected mid-market
focused alternate asset manager in India with a
focus on providing Growth Capital and Real
Estate private equity. Right from inception,
Motilal Oswal Private Equity (MOPE) was
visualized as an asset management platform for
entrepreneurs by entrepreneurs.

Vishal Tulsyan came on board as the founding CEO. Under his leadership, MOPE cumulatively
manages close to US$ 900 million and has raised three growth capital funds [India Business
Excellence Fund-I (IBEF-I), India Business Excellence Fund-II (IBEF-II) and India Business
Excellence Fund-III (IBEF-III)] and four real estate funds [India Realty Excellence Fund
(IREF), India Realty Excellence Fund II (IREF II), India Realty Excellence Fund III (IREF
III)] and India Realty Excellence Fund IV (IREF IV)] to invest in real estate projects across
India. One of the few funds in India with a strong focus and presence in Tier 2 & 3 towns.

Private Equity website - [Link]

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6. Investment Banking

“Designed to Deliver”
Investment Banking business combine wide deal experience, deep understanding of various
industries and extreme customer orientation to deliver optimal outcomes to our clients. The
team comprises over 20 professionals having substantial experience in the full range of
Investment Banking advisory and transaction solutions to both Indian and International clients,
covering private placement of equity, M&A advisory and Equity Capital Markets transactions.

Business Activities of Motilal Oswal Investment Advisors Limited:

Equity Capital Markets
• Initial Public Offerings; Follow On Public Offerings; Rights Issues
• Qualified Institutions Placement; Preferential Placements; Offer For Sale
• Buybacks and Open Offers
M&A & Private Capital Raising
• Buy Side and Sell Side M&A Advisor
• Private Equity Placements
• Structured Finance and Debt Solutions

Other Services:
1. Motilal Oswal Securities Ltd (MOSL) is a full service broker offering equity, derivatives,
commodity and currency trading across BSE, NSE, NCDEX, MCX and MSEI. Motilal
Oswal Securities Ltd is also a distributor of Mutual Fund, PMS & IPOs.

2. PMS & Mutual Funds are offered through Motilal Oswal Asset Management Company
Ltd (MOAMC) which is group company of MOSL.

3. Commodity services are offered through Motilal Oswal Commodities Broker Pvt.
Ltd member of MCX, NCDEX. You can trade across Bullion, Metals, Energy, Agro and
other commodities and also get a leverage tool called Value Plus for intraday traders to
get exposure of upto 3-4 times of available funds. You also have access to latest
happenings from the commodity markets across MCX & NCDEX with commodity news,
advice, research and latest prices.

4. Motilal Oswal Equity Trading - Motilal Oswal is registered member of NSE and BSE, you
can trade in Equity Cash and Equity Derivatives with MO using online or offline (branch /
sub brokers) network. Motilal Oswal equity research team is there for you to give daily
research report, weekly research report, latest market updates and news and intraday stock
tips.

5. Motilal Oswal depository services(DP services) - Motilal Oswal is a depository participant

(DP) of NSDL and CDSL. They offers 2-in-1 account which include an online trading
account and a demat account for secure and hassle free trading.

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6. Motilal Oswal Customer Service - Motilal Oswal offer online application (Will complete
in 15 min), 100 % paperless trading and demat account opening process, dedicated
customer service team with a 6 hour query resolution TAT, huge network of sub brokers
and branches, dedicated Relationship Managers and advisory team at every branch for
personal touch-base.

7. Motilal Oswal gives you opportunity to become Business Partners with them in either of
these ways- Franchisee, Remisier, employee or channel partner.

8. Motilal Oswal Robust Business Portal - With Motilal Oswal’s business development portal
- UpperMOST, you can monitor your business progress as well as client’s holdings on a
real-time basis.

9. Motilal Oswal Portfolio Management Services(PMS) - Motilal Oswal Asset Management

Company Ltd (MOAMC) being India 's leading PMS service providers,
offers professional management of your investments with benefits like regular reviews,
strong risk management flexibility makes it an ideal investment avenue for high net worth
investors. It gives you Flexibility to switch from one strategy to other and additional
purchase facility & partial withdrawal facility. They offer three products namely:

• Value Strategy
• Next Trillion Dollar Opportunity
• India Opportunities Portfolio Strategy

10. Motilal Oswal Advisory Services - Motilal Oswal provides advisory services across various
asset classes on all of their platforms for Mobile, Tablet, Desktop and web. Tailor made
customized actionable plans, advanced tools & strategies are available across investment
styles & risk profiles. They have specialized desk of 105+ advisors to help you reactivate
inactive clients and increase your revenue multifold.

11. Motilal Oswal Mutual Fund Services - Mutual Fund Services with Motilal Oswal comes
with Invest wisely with us in Lump sum, Systematic Investment Plans (SIPs), Systematic
Transfer Plan (STPs), Systematic Withdrawal Plan (SWPs) and New fund offers (NFO 's)
across all the asset class - Equity, Debt, Balanced, Tax Saving funds. You can invest in
9,000+ schemes across 40 AMCs. Margin facility giving you an option to leverage your
mutual fund units.

12. Motilal Oswal has its own Asset Management company (AMC) - "Motilal Oswal Asset
Management Company Limited", is ingaged in Asset Management.

13. Motilal Oswal IPO Investment Services - Motilal Oswal provides investment in IPOs
online and offline both through ASBA process. They also provide IPO recommendations
by their advisory team. You need a single login across devices Desktop, Mobile or Web.

14. Motilal Oswal Research Services - Motilal Oswal is one the best market analyst in the
industry with a dedicated large cap, mid cap & technical research teams for in-depth daily
reports on equity, currency and commodity market, weekly, monthly and yearly company
reports, sector reports, thematic reports, market analysis reports.

14
 LITERATURE REVIEW

1) Atkinson (2000) There are several studies in the literature that attempt to discuss some of
the problems and challenges associated with online trading. The first problem discussed in the
literature is hidden costs and deceptive advertising associated with online trading. supported
this contention that buried in all the online trading hype resides the fine print. This obscure data
translates into a venture that is more costly than one was lead to believe.
2) McNamee (2000) and Patel (1999) Delayed and varied execution speeds and self serving
market makers were among the items responsible for this pitfall of online trading as was
collaborated in the studies. Internet security is also a major concern to investors. Computer
hackers and viruses plague every sector of the computer community and with certainty will
continue to do so.
3) (Goldberg, 1998) Internet applications are endless and e-commerce companies are
developing innovative business models and making advancements everyday. One of the fastest
growing internet ventures is online trading. The first internet securities trading occurred in
1994. By 1997, it has been estimated that 17 percent of all trades occurred online via the
internet. Online brokerage firms emerged and the wealth of information available to many
investors.
4) (Padhi and Naik, 2012) Stock markets play an essential role in growing industries that
ultimately affect the economy through transferring available funds from units that have excess
funds (savings) to those who are suffering from funds deficit (borrowings).
5) (Poon and Swatman, 1999) Countries all over the world have invested heavily to leverage
the Internet and transform their conventional businesses into e-businesses. E- businesses are
defined as the use of Internet based information and communication technologies (ICT) by
organizations to conduct transactions, share information and maintain relationships.
6) Raju and Karande (2003) also reported a decline in volatility of S&P CNX Nifty after the
introduction of index futures. (Williams, Whalley, and Li 2000) A service product cannot be
adopted without proper infrastructure (Walsh and White 2000). This is also true of online
trading where security, reliability, and speed are vital for consumer trust and loyalty. Many
online investors are concerned about the security of Internet transactions: for example, the
integrity of information, secure payment mechanisms, and communication/information free
from interception and misrepresentation.
7) (Greenwald et al. 1998) Investor concerns could be alleviated with development of new
technology that would bring not only more security but enhanced network reliability and speed
as well. The speed of stock transactions on the Internet is improved over that through traditional
channels, not only because of faster networks, but also because there are fewer individuals
between the investor and the final site where bids and offers meet to complete a transaction.
Further automation could also lower the transaction cost
8) (Sarkar, Butler, and Steinfield 1996). In an effort to earn client trust, Datek offers free real-
time stock quotes and promises to execute trades within 1 minute or refund the commission
(Greenwald et al. 1998). (Sindell 1999, Ch. 16) Many online portfolio-tracking services are
available on the Internet or are offered as computer software programs. In response to services

15
available to online investors, full-service brokers contend that they can provide expert advice
and personal service (Emerson 1999).
9) (Jurek 1999) Other related services, such as advice on how to deal with the quick build up
of tax liabilities generated by short-term trades are [Link] argue that the biggest hazard
of e trading is trading itself, and the ability to buy and sell instantly should not be confused
with investing. Some people have neither the time nor the confidence to manage their portfolios
because being a skilled investor is a fulltime job (Online Investing 1999). The brokers
recommend that investors who fear new technology “talk to a live body” .
10) Ray (2000) and Turner (2000) Privacy, identification, and investor protection by using
trusted third parties and/or privacy statements, online brokers have tried to increase consumer
confidence and loyalty. Anonymity must be guaranteed, since investors, individual and
institutional, would like to hide their actions in order to buy and sell stock at the best price.
Online trading companies secure transactions over the Internet by offering data encryption and
requiring a unique user identity and password when the investor logs on. They also provide
clients further safety if they fail to achieve web security.
11) Rogers and Shoemaker wrote (1971, 138), which focused on the provider of products and
services, discussed the benefits and drawbacks of online trading in general from the traders‟
viewpoint. But their approach did not deal with the range of investor responses to the
innovation of online trading. Innovation-diffusion scholars shed light on this issue by finding
that attributes of innovations could appeal differently to users at different stages of the
innovation adoption process. Rogers (1995, Ch. 5), an individual progresses through 5 different
stages in the innovation-decision process model: (1) From first knowledge (awareness) of an
innovation (2) to the persuasion (attitude formation and change) stage, (3) to a decision to adopt
or reject the innovation, (4) to implementation of the new idea, (5) to the confirmation
(reinforcement for the adoption or rejection of a prior decision) stage.
12) Dr. A Abdhul Rahim (2013), discovered the pitfalls related to online trading. He suggests
that investors should be protected from all hassles and problems so as to remain confident while
trading online.
13) Brad M. Barber and Terrance odean (2001), studied the deep relationship between the
investor and his major weapon the internet, suggesting that a combination of internet and
shareholders voting could become a new tool for organisations promoting special society
welfare like corporate social responsibility environmental actions and consumer help.
14) Rajagopalan, V, expressed the problem faced by him on online shares trading. What he
cannot stomach is how his ID number was interchanged with another client, and his account
debited to pay for derivatives, while he did not order. Worse his scrips were sold to cover losses
which he had not incurred. Luckily, the broker admitted his mistake and compensated him.

16
JOURNEY AT MOTILAL OSWAL FINANCIAL SERVICES LIMITED
On our first day, we were given a short briefing about MOFSL and its working. We were
explained the basics of the stock market.
Different types of Markets- Primary and Secondary markets. Primary markets are place were
the shares are issued for the first time with IPO (Initial Public offering) whereas secondary
market is were those shares are traded among the other investors in the market.
We have around 23 stock exchange in India from which two major are BSE & NSE. In BSE
there around 5500+ companies listed among which top 30 companies performances are
displayed on the Sensitivity Index (Sensex) and In NSE more 1600+ companies are listed
among which top 50 company’s performance are displayed on National Fifty index (Nifty).
Later we understood the Stock market Timings.
• Pre Market [9:00am to 9:15am] - Advance order placing.
• Live Market [9:15am to 3:30pm] - Real time Transaction
• Post Market [3:40pm to 4:00pm] - Can buy even if market is closed but pricing will be
as per closing price.

Learnings:
7.1 Demat account and Trading account
There are 2 types of Accounts- Demat account and Trading account.
Demat A/c- were we can view our shares which we have traded. Maximum 3 people can have
a joint Demat a/c and among those the 1st person can trade.
Whereas Trading account allows to electronically buy or sell shares and other securities in
the stock market. For a person both the accounts are important to conduct trading in stocks.

Then we discussed about Depositories and types of Depositories- NSDL(National Security

Deposit limited) promoted by NSE and CDSL (Central Depository Service Limited) promoted
by BSE.
Trends in Stock market- Bullish and Bearish market. We buy at Bearish market were the
value is low and sell at Bullish market were the value is high.
Types of trades- Intraday and Delivery. Intraday Trading is same day buying and selling
whereas Delivery Trading is buying for a long time.
We also understood the concept of Square off which means reversing the positions. In Delivery
Trading it takes T+2 days to receive shares it includes BTST (Buy Today Sell Tomorrow).
After that we learned about the concept Exposure which helps the investors to trade in higher
valued stocks. In Intraday, max 20 times of base margin is provided by the broker after scrip
to scrip, if loss the 75% of the base margin is reached the broker will square off and take his
amount and give back our 25% of base margin. In Delivery Trading, min 2 times and 4 times
of base margin is given based on scrip to scrip. The investor has to repay the amount within
T+2 days or else 0.05% per day interest will be charged till T+6 days. Given option by broker
investor can repay till T+90 days with still 0.05% interest per day and if the 75% of base margin
is crossed then buyer will square off. This concept is called Marginal Funding.

17
7.2 Candlesticks

• Candlestick charts are used by traders to determine possible price movement based on
past patterns.
• Candlesticks are useful when trading as they show four price points (open, close, high,
and low) throughout the period of time the trader specifies.
➢ Open: Price at which script opens for trading/ for a period of time
➢ High: Highest price achieved by script over a period of time
➢ Low: Lowest price achieved by script over a period of time
➢ Close: Last traded price of the script over a period of time

• Many algorithms are based on the same price information shown in candlestick charts.
• Trading is often dictated by emotion, which can be read in candlestick charts.

7.3 Fundamental analysis

• Fundamental analysis is a method of determining a stock's real or "fair market" value.
• Fundamental analysts search for stocks that are currently trading at prices that are
higher or lower than their real value.
• If the fair market value is higher than the market price, the stock is deemed to be
undervalued and a buy recommendation is given.
• In contrast, technical analysts ignore the fundamentals in favor of studying the historical
price trends of the stock.
7.4 Technical analysis
• Technical analysis attempts to predict future price movements, providing traders with
the information needed to make a profit.
• Traders apply technical analysis tools to charts in order to identify entry and exit points
for potential trades.
• An underlying assumption of technical analysis is that the market has processed all
available information and that it is reflected in the price chart.

18
7.5 Ratio analysis
Ratio analysis is a process used for the calculation of financial ratios or in other words, for the
purpose of evaluating the financial wellbeing of a company. The values used for the calculation
of financial ratios of a company are extracted from the financial statements of that same
company.

8 Financial Ratio Analysis that Every Stock Investor Should Know:

1. Earnings Per Share (EPS) – Increasing for last 5 years

2. Price to Earnings Ratio (P/E) – Low compared to companies in the same sector
3. Price to Book Ratio (P/B) – Low compared to companies in the same sector
4. Debt to Equity Ratio – Should be less than 1
5. Return on Equity (ROE) – Should be greater than 20%
6. Price to Sales Ratio (P/S) – Smaller ratio (less than 1) is preferred
7. Current Ratio – Should be greater than 1
8. Dividend Yield – Consistent/ Increasing yield preferred

7.6 Market indicators

• Market indicators are quantitative in nature and seek to interpret stock or financial index
data in an attempt to forecast market moves.
• Market indicators are a subset of technical indicators and are typically comprised of
formulas and ratios.
• Popular market indicators include Market Breadth, Market Sentiment, Advance-
Decline, and Moving Averages.

Indicator 1 – Trend

A stock trend indicator measures both the strength and direction (up/down) of a trend. A trend
indicator typically uses some form of price averaging to establish a baseline. A trend moving
up from baseline is bullish, while a trend moving down is bearish. Moving averages are the
most common trend indicator used to determine support and resistance levels for a market
movement.

19
Indicator 2 - Momentum

Momentum helps to establish the rate at which the price of a financial index is changing. It’s a
simple calculation whereby you deduct the current closing price from the closing price a
specific number of periods ago. You can then plot a chart using these values to identify the
momentum change over time. Market analysts typically use 10-day periods for momentum
calculation on indices like the S&P 500.

Indicator 3 -Volatility

These stock indicators look at changes in the market prices over a specified period to help
traders detect points where the market may change direction. Volatility indicators are typically
based on a difference in the highest and lowest historical prices. The more volatile the market
is, the higher the unpredictability and risk. But it can also point out likely points for price
changes/corrections.

Indicator 4 - Volume

Volume is used to measure the strength of a trend based on the underlying market activity. It
generally employs some method of averaging or smoothing out the raw volume. More money
flowing in and out of an instrument at any given time usually results in more substantial
movements. Therefore, it’s helpful to confirm the direction of a trend or its sustainability but
can also be used to identify tops and bottoms due to market saturation and incoming
corrections.

Indicator 5 - Market Breadth

Market breadth indicators analyze the relative trend of the overall market based on how many
securities are on the rise versus how many are falling. If more stocks/securities have an upward
trajectory, then the overall market breadth is positive, and we can say that the market is on a
bullish run. If the majority of stocks/securities are declining, then the market breadth is negative
and bearish.

The Advance-Decline line is one of the leading stock market indicators for market breadth. If
only a few dominant securities are advancing, but most smaller securities are declining, the
market breadth is still negative overall. This allows traders to see if only a few securities prop
up the entire index or if the overall market sentiment and performance are genuinely positive.

Indicator 6 - Market Sentiment

These stock indicators are meant to help analysts determine the overall mood of the market. In
its simplest form, these indicators help to determine if the overall market sentiment is likely
optimistic (bullish) or pessimistic (bearish). This helps to indicate if the market is likely to
continue on an upwards or downwards trend or whether any reversals are imminent.

Price and volume are two fundamental market sentiment indicators. A lot of trading volume
(positive or negative) shows how strongly the market is behind a given trend.

20
The CBOE Volatility Index (VIX) indicator is often seen as the ‘fear index’ because it spikes
when investors purchase a significant amount of put options—signaling the belief that the
underlying stock will fall.

Indicator 7 - Advance-Decline

The Advance-decline (A/D) indicator is commonly used to determine the market breadth. It’s
a simple indicator that plots the advancing stocks against the number of declining stocks. The
indicator is cumulative, with a positive number added to the prior number, or if the number is
negative, it’s subtracted from the prior number.

If major securities/indices rally while the A/D line is rising, it offers analysts stock signals that
the market is strongly rebounding. But if significant securities/indices are rising, and the A/D
line is flat or declining, it shows that the market might be near the end of its rally.

Indicator 8 - Moving Averages

Moving average is a technical indicator that indicates the average price for a particular trading
instrument over a specified period. For example, you can have a 10-day, 50-day, or 200-day
moving average that shows the change in the stock’s average closing price based on these
timeframes.

Investors use moving averages to smooth out normal day-to-day price fluctuations and help
track trends. There are two main types of moving averages:

A) Simple Moving Average (SMA)

This is the moving average described above. You add up the average prices of the financial
instrument and then divide by the number of prices added together.

B) Exponential Moving Average (EMA)

An EMA applies more weight to the most recent closing prices to favor newer information.
First, you need to calculate the SMA, then the multiplier for weighting the EMA over the given
period, and then use this smoothing factor combined with the previous EMA to get the result.

Indicator 9 - Relative Strength Index (RSI)

The Relative Strength Index is a momentum stock market indicator used to measure the
magnitude of recent price changes to evaluate if the price of a stock or a financial instrument
indicates that it is overbought/oversold.

An RSI indicator uses a scale from 0 – 100. Oversold thresholds are closer to 0, while
overbought thresholds are closer to 1. The indicator itself oscillates between these two
extremes. So, RSI helps determine potential price swings or pullbacks.

For example, 70% is the typical overbought threshold for a stock, while 30% is the oversold
threshold. When the indicator goes above 70%, it shows that the stock is experiencing more
significant than average buying volumes and that a correction might be on the horizon.

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Indicator 10 - Moving Average Convergence Divergence (MACD)

MACD is a trend-following momentum stocks indicator that shows the relationship between
two moving averages of a security’s price. The standard formula for the MACD is to simply
subtract the 26-period EMA (also called ‘signal line’) from the 12-period EMA.

When used as an indicator, two lines are plotted together—one for the 12-period EMA and one
for the 26-period EMA. Traders usually look for points where the two lines cross to signal an
upwards or downwards trend. For example, if the 12-period EMA crosses above the 26-period
EMA, it’s a positive trend, while it’s negative if the 12-period EMA crosses below the 26-
period EMA.

A 9-day EMA line is also often plotted with the MACD line to trigger stock buy sell signals.
MACD is also often used with RSI or a histogram that graphs the distance between the MACD
and its signal line.

7.7 Mutual funds and derivatives

We learned what is mutual funds, risk involved in it and why people invest in mutual funds.
We also understood various reasons to invest in mutual funds.
We learned about Derivatives, we understood the concept of derivatives and how it functions,
it is a contract trading, it is made in 3 series i.e. 3 months contract. And the validity of the
agreement is last Thursday of every month.
Later we also did a dummy trading in stock market. Here we were shown how to make the
buying and selling of shares of the companies listed.
We started providing leads for the demat accounts. We connected with our friends, family and
relatives to create awareness about demat accounts and advantages of investing in stocks. They
were the people we know and turning them into our clients was our goal. Initially some people
denied to be our client but later we realized that its not the free account that will attract the
customers it’s making them realize the importance of Investment in their life. After that we
were able to attract more people as compared to before.
7.8 Challenges faced during generating leads for demat accounts:-
• Lack of knowledge about stock market.
• Disinterest in opening an account.
• Already having a demat account in some other firm.
• Lack of trust on stock market.
• Lack of trust on the company.
• Better offers from the competitors

22
 SWOT ANALYSIS OF MOTILAL OSWAL FINANCIAL SERVICES
LIMITED

Parent Company - Motilal Oswal Ltd.

Category - Brokerage Houses, Consumer Financial Services

Sector - Banking & Financial Services

Tagline/ Slogan - Solid research solid advice; Knowledge First

Segment - Brokerage

Target Group - Urban and Rural Investors

Positioning - Complete Investment and Stock trading Solutions

STRENGTHS:

Below are the Strengths in the Motilal Oswal Financial Services SWOT Analysis:
[Link] range of financial products and focus on premium traders
2. Emphasis is on efficient execution of trades
3. Strong private equity operations
4. Have over 1500 offices in India
5. Financial products and services such as Wealth Management, Broking & Distribution,
Commodity Broking, Portfolio Management Services, Institutional Equities, Private Equity,
Investment Banking Service.

WEAKNESSES:

Here are the weaknesses in the Motilal Oswal Financial Services SWOT Analysis:

1. Less penetration in developing cities

2. Lack of advertising causes low awareness amongst investors

OPPORTUNITIES:

Following are the Opportunities in Motilal Oswal Financial Services SWOT Analysis:
1. Growing rural market
2. Earning Urban Youth looking for investments

THREATS:

The threats in the SWOT Analysis of Motilal Oswal Financial Services are as mentioned:
1. Stringent Economic measures by Government and RBI
2. Entry of foreign finance firms in Indian Market

23
 MAJOR COMPETITORS

9.1. SHAREKHAN

About Sharekhan – Always the first

Founded in 2000 and a subsidiary of BNP Paribas since November 2016, Sharekhan was one
of the first brokers to offer online trading in India. With 20 lakh customers, 153 branches and
more than 2400 business partners spread across over 541 locations, Sharekhan is one of the
largest brokers in India. Sharekhan offers a wide range of savings & investment solutions
including equities, futures and options. currency trading, portfolio management, research and
mutual funds and investor education. On an average, Sharekhan executes more than 400,000
trades daily

• Guiding India's retail stock investors for 20 years

• Registered with NSE and BSE for capital market, futures and options and currency
segments and CDSL and NSDL for depository services.

• A full-service stock broking firm providing online services right from online account
opening to trading and investments.

• Created India’s best online trading platforms: Website ([Link]), TradeTiger

(the ultimate desktop trading software), Sharekhan App (available for Android and iOS
devices) and Sharekhan Mini (a low bandwidth website especially for mobile browsers)

• A strong brick-and-mortar network with over 3200 outlets in 541 cities

• Research-based financial advice on all asset classes to suit all investing and trading styles

• Dedicated Education and training courses for investors and traders in association with
Online Trading Academy

24
9.2 INDIABULLS

About Indiabulls

The Indiabulls Group is a diversified financial services group with interests in housing finance,
consumer finance and personal wealth. The Group also has a presence in Real Estate,
Pharmaceuticals, Lighting and Infrastructure & Construction Equipment Leasing. The group
has a net worth of more than ₹ 28,580 Cr. (as on 31st March, 2019).

The Group emphasizes a strong focus on technology and customer-centricity, ensuring that all
its companies are in line with the Group principle of – On For Tomorrow. All its products and
offerings are designed and created to ensure that convenience and simplicity is the primary
experience for customers. In addition to providing customers with superior experiences, the
Group’s companies adhere to strong standards, ensuring that all efforts are made in a feasible
and sustainable push for long term profitability.

Amongst its leading companies, the Group’s flagship company, Indiabulls Housing Finance,
is rated AA by leading rating agencies including CRISIL & CARE and Indiabulls Real Estate
is a premium real estate developer engaged in building quality landmark projects. All the
Group’s companies are run independently and are listed in the Bombay Stock Exchange and
the National Stock Exchange.

Indiabulls Group started operations in 1999 as a financial services company.[1] Today, the
Group has businesses spread across housing and consumer finance through independent and
listed companies on Indian stock exchanges.
Equity shares of all the group companies are independently listed on the Bombay Stock
Exchange (BSE) and the National Stock Exchange (NSE). Its global depository
receipts (GDRs) are listed on the Luxembourg Stock Exchange.
Products offered are financial services, real estate, pharmaceutical, construction equipment
leasing, LED lights and facilities sector.

Divisions are:
• Indiabulls Housing Finance Ltd.
• Indiabulls Ventures Ltd.
• Indiabulls Real Estate Ltd.

25
9.3 ANGEL BROKING

About Angel One

Angel Broking Limited, trading under the brand name Angel One, is an
Indian stockbroker firm established in 1996. The company is a member of the Bombay Stock
Exchange, National Stock Exchange of India, National Commodity & Derivatives Exchange
Limited and Multi Commodity Exchange of India Limited. It is a depository
participant with Central Depository Services Limited (CDSL). The company has more than
8500 sub-brokers and franchisee outlets in more than 900 cities across India.
The company's services include online stock broking, depository services, commodity
trading and investment advisory services. Personal loans and insurance are also delivered by
this company. In 2006, Angel Broking also started its portfolio management
services, IPOs business and mutual funds distribution arm.
Angel Broking has products such as Angel Spark, Angel BEE mutual fund app, Angel
SpeedPro, Angel Trade and Angel Swift for online trading. Angel Eye is a browser trading
application; SpeedPro is a trading platform application; Angel Trade offers an online trading
platform for share investors; and Swift is a trading app for small devices.
Angel Broking was incorporated on 8 August 1996 as a private limited company. Later, Angel
Broking was incorporated as a wealth management, retail and corporate broking firm in
December, 1997. In November 1998, Angel Capital and Debt Market Ltd. gained membership
of National Stock Exchange as a legal entity. The company opened its commodity broking
Division in April, 2004. In November 2007, Birla Sun Life Insurance joined hands with Angel
Broking for distribution of its insurance products. The International Finance
Corporation bought an 18% stake in Angel Broking for ₹152 crore (equivalent to ₹390 crore
or US$52 million in 2020) in December 2007. The company opened an office in Karol Bagh,
New Delhi in October 2012. Angel Broking began offered shares through an initial public
offering in September 2020, and was listed on the Bombay Stock Exchange and the National
Stock Exchange on 5 October 2020.
On 22 April 2021, Angel Broking appointed Silicon Valley veteran Narayan Gangadhar as its
new CEO. The Board of Angel Broking approved changing the company's brand identity to
appeal to Gen Z and millenial investors on 29 May 2021. The company officially began using
the new Angel One branding and logo on 3 August 2021, while its corporate legal name
continues to be Angel Broking Limited.

26
 RESEARCH METHODOLOGY

10.1 OBJECTIVES OF THE STUDY:

• To study the investor perception of online and offline trading towards share market.
• To evaluate the present level of service provided by online share market.
• To determine the problem actually faced by the investors with reference to online and
offline trading system.
• To identify the current traders of online trading and offline trading.
• To study the influence of demographic profile on investors awareness on stock market.
• To study investors perception on online trading like safety regarding online frauds,
transaction errors and speed/ connectivity problems.
• To study a comparative analysis on the services provided by major online trading
service providers in the market.

10.2 RESEARCH METHODOLOGY:

Type of Sampling: - Random Sampling.
Sample Size: - 57 Investors.
Sources of Data: - Primary Data and Secondary Data.
Primary Data sources :-
✓ Questionnaire

Secondary Data:-
✓ Company Reports
✓ Books
✓ Journals
✓ News Papers

Representation of Data :-
The collected data will be represented with the help of different charts and graphs.
The study is based on both primary and secondary data as [Link] primary data is collected
through a well designed structured questionnaire. The secondary data is collected from various
publications and official websites, company’s annual reports and newspapers. Tables and
diagrams have been used at the appropriate places to present and classify the available data.
Thus, in general, the study is said to be partly explorative and partly analytical in nature with
action-orientation approach. Random samples have been chosen for the sampling of data

27
collection. It’s a small survey of urban population (mumbai). The research includes all the age
groups. A total of 57 respondents submitted the duly filled forms. This covered my interest of
study depending on the response by respondents.

10.3 SCOPE OF THE STUDY:

The research on a study of investors preference towards online market helps to know the
attitude, awareness and preferences of the investors based on the information investment broker
can carry out further research on specific problem the research suggestion through report will
help them to develop their services . Many services will be undertaken to interest new investor.
This study helps to give value added services and maintain healthy investor relationship. The
scope extends to many classes of investors being classifies as professionals, employees and
businessman and other regarding to the fact that there is a need of institutional support which
may be broker, agent or even financing institutions .the study extends to these areas too.

10.4 LIMITATIONS OF THE STUDY:

1. The findings of the study is applicable to only investors residing in Mumbai. A revelant
study of wide area was not possible for travelling reasons.
2. Also, paucity of time was a major concern for the success of this study.
3. Besides, few respondants hesitated to fill up the questionnaire inspite of this survey being
annymous.
4. It is always a problem to get an enthusiastic response. There were not many willing
participants; lack of cooperation remains an aberration in most of the survey based
researches.
5. The respondents’ behavior changes according to stock market fluctuations.

28
 DATA COLLECTION AND ANALYSIS

Male Female
54.4% 45.6%

The result of the study reveals that, among those who were surveyed, 54.4% of the respondents
were male and 45.6% were females.

Below 18 years 0%
18-30 years 91.2%
Above 30 years 8.8%

Among the total respondents, 91.2% respondents of the investors belonged to 18-30 years age
group and the rest were above 30 years of age. There were no respondents who belonged to the
age group of below 18 years.

29
 Public sector employee 3.5%
Private sector employee 24.6%
Business 3.5%
Professional 1.8%
Student 66.7%

Among the respondents, 66.7% were students, 3.5% belonged to public sector whereas 24.6%
belonged to private sector, 3.5% owned a business and 1.8% were professionals.

School 3.5%
Under graduate 21.1%
Post graduate 68.4%
Professional 5.3%
other 1.8%

Among the respondents, majority were post graduates followed by under graduates and then
professionals.

30
 Investors who have demat account 64.9%
Investors who do not have demat account 35.1%

The result of the survey reveals that a majority of 64.9% of the respondents have a DEMAT
account whereas 35.1% of the respondents do not have a DEMAT account.

Shares 52.6%
Mutual funds 38.6%
Bonds 0%
Derivatives 1.8%
Other 7%

It is evident from the above pie chart that a majority (52.6%) of the investors invest or would
like to invest in shares as it is easily accessible money. The money put in some types of
investments, such as fixed deposits, cannot be accessed until the investment has matured. In
contrast, buying shares allows investors to sell them at any time, without a limit. 38.6% of the
investor invest or would like to invest in mutual funds as they get a built-in diversification.
When we buy a mutual fund, our money is combined with the money from other investors, and
allows us to buy part of a pool of investments.

31
 Investors using online trading mode 75.4%
Investors using offline trading mode 8.8%

The study reveals that a majority of 75.4% of the investors use online mode of trading whereas
8.8% of the investors are still using offline mode for trading.

Personal computer/ laptop 13.2%

Mobile phone 86.8%
Tab /ipad 0%

A majority of 86.8% of the investors use mobile phones for trading as mobile trading allows
investors to access trading platforms from their telephones rather than being confined to
traditional trading methods via computers. Such technology allows earlier access for the
smartphone users to actively manage their portfolios even when they are away from a desktop
or laptop.

32
 Trading by calling(phone) 33.3%
Authorize portfolio managers to invest in equities 33.3%
Directly from brokers place 33.3%

When asked about the offline trading, 33.33% of the investors said that they prefer to call (over
phone) directly to trade, 33.33% of the investors prefer to take the help of authorize portfolio
managers to invest in equities and 33.33% of investors directly invest from brokers place.

Entry of FII’S 8.8%

New IPO 17.5%
More returns in less investment 71.9%
Better results after analysing the fundamentals 1.8%

The study reveals that, a majority of 71.9% of the investors invest in securities to earn more
returns in less investment as it helps to grow the money. Over the time, the stock market tends
to rise in value, though the prices of individual stocks rise and fall daily but investments in
stable companies that are able to grow tend to make profits for investors. Whereas the new IPO
motivates 17.5% of the investors to invest in securities followed by entries of FII’S.

33
 Salary below 15000 61.8%
15000-35000 25.4%
35000-60000 7.3%
Above 60000 5.5%

Among the respondents who were surveyed, there were 61.8% of investors with a salary of
below 15,000 per month. 25.4% of the investors had their salaries between 15,000-35,000
whereas 7.3% of the investors earn between 35,000-6000 and only 5.5% of the investors earned
above 60,000 per month.

Investors investing on daily basis 8.8%

Investors investing on weekly basis 21.1%
Investors investing on monthly basis 59.6%
Investors investing on yearly basis 10.5%

The study reveals that the 59.6% of the investors invest on a monthly basis followed by 21.1%
of investors investing on weekly basis. 10.5% of investors invest on yearly basis and 8.8%
being the least i.e. on daily basis.

34
 Formal source of information 24.6%
Informal source of information 8.8%
Both 59.6%
Other 7%

The study reveals that 24.6% of the investors rely only on formal source of information (
professional advice through TV, print media, websites, etc) for trading in shares. 8.8% of the
investors rely only on informal source of information such as friends, relatives etc, whereas
59.6% pf the investors rely on both formal and informal source of information for trading.

35
36
 Online Offline
Easy accessible trading 55 4
Security and risk 48 15
Brokerage 42 16
Research and trade 52 7
Flexibility 50 8
Chances of error are less 43 16

37
The above table indicates the opinion of the investors towards online and offline trading. In
this comparative study 55 people think that online trading is more accessible than offline
trading.
48 investors think that even though online trading is easily accessible it is exposed to risk at
the same time.
42 people are in the favour of brokerage rates they have to pay while online trading as it is less
compared to what offline brokers charge.
52 number of investors are comfortable with online trading as is easy to research about a
particular stock they want to trade with.
50 investors think online trading is more flexible with online trading as compared to offline
trading.
43 investors feel that chances of error is less in online trading whereas 16 investors voted for
offline trading.

RESULTS:

• Survey has shown us that people from the age group of 18-30 are more likely to invest
in shares.
• The population likes to majorly invest in shares followed by mutual funds.
• Majority of the people nowadays prefer to do online trading through their personal
gadgets such as computer/laptops or mobile phones.
• Investors like to invest in financial instruments with the intention of getting more
returns in less investment.
• Investors follow both the mode of investment advice that helps them to gain more
return. i.e formal and informal source of information.
• Investors prefer online trading because its easily accessible, its gives security and
lowers risk, the brokerage is less compared to offline trading, it is flexible and chances
of error are less in online trading.

38
 CONCLUSION

1. Due to the numerous benefits of online trading, more and more people are selecting online
trading platforms.

2. Online Trading has been proved to be the future of “Bulls and Bears” industry.

3. Online services offer customers a splendid display of benefits such as enhanced control,
ease of use and reduced transaction charges.

4. Consequently, online services have grown rapidly and have emerged as a leading edge of
service industry.

5. Hence, we can conclude that investors prefer online trading more than offline trading as it
eliminates middleman or brokers, it is less expensive, The investor has all the control over
the shares he or she holds and can review the status of the shares easily, through online
trading, you can execute your trading anytime without anyone’s help.

6. With a few clicks, you can execute your trade and complete the transaction. You can buy
stocks when prices go down, and you can sell your stocks when the price hits the roof.

39
ANNEXURE

40
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 AN ASSESSSMENT OF THE INTERNSHIP

1. Professional communications:

One of the most valuable skill that I have gained from my internship is the ability to speak with
people in a professional setting. It was a great opportunity to practice the professional
communication style with myself and with fellow students specially with the team leaders. This
will help me a lot when I start interviewing for jobs, because I will be more confident and will
sound more mature and experienced in a business setting.

2. Networking:

As an intern, I learned how important networking is for my future career. Connecting with
people in my desired career path through my internship has led me to solidify my desire to
work, and I had mentors to turn to when I had questions regarding the field and my work. I am
also now more confident when it comes to talking to potential co-workers and employers in
my field, because I gained experience in that while an intern.

3. Taking criticism:

It can be difficult to be told that you need to improve upon something or that you completed a
task incorrectly. As an intern, I learned how to handle criticism with grace (both from watching
other students receive criticism and from receiving criticism myself), which also built my
confidence in a professional setting. Since I already had a trial run in the workplace as an intern,
I know now that I can handle criticism maturely, and I know how to respond to it professionally
and respectfully, which will definitely help me in my career.

4. Leadership, confidence, and responsibility:

While I was an intern, I was responsible for various areas for which I worked. I had guidance
and mentors, but I did have to make decisions on my own. Through these experiences, I
developed a sense of leadership (especially with regards to speaking for and defending my
ideas and decisions, not to mention actually making decisions!), confidence (along with taking
ownership of my decisions and their outcomes), and responsibility. These traits are invaluable
when it comes to a career, and an internship is the perfect place to learn and perfect them.

45
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