1

MAHATMA GANDHI

UNIVERSITY

RAJAGIRI COLLEGE OF BUSINESS

STUDIES

A PROJECT REPORT ON

“ORGANISATIONAL STUDY OF HEDGE

EQUITIES LTD.”

IN THE PARTIAL FULFILLMENT OF DEGREE

MASTER IN BUSINESS ADMINISTRATION (2013-2015)

SUBMITTED BY

APARNA HARI

ROLL NO. 1379

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ACKNOWLEDGEMENT

First of all, I thank Almighty God for all His blessings.

With regard to my Organisational Study and Project on Mutual Fund I

would like to thank each and every one who offered help, guideline and

support whenever required.

First and foremost I would like to express gratitude to my

Trainer Mr. Benil D. Alex, Head of Accounts Department, Mr. Sajin

Francis other staff of Hedge Equities Ltd. for their support and guidance

in the Project work. I am extremely grateful to my guide, Mr. Abraham

Joseph for his valuable guidance and timely suggestions.

And lastly, I would like to express my gratefulness to the parent‟s for

seeing me through it all.

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LIST OF CONTENTS

SERIAL NO. TITLE PAGE NO.

List of Tables 4

List of Figures 6

1. Section 1- Organisational

Study

8

2. Chapter 1- Introduction 9

3. Chapter 2- Company Profile 16

4. Section 2- Problems Centred

Study

37

5. Chapter 1- Problem

Formulation

38

6. Chapter 2- Research Process 56

7. Chapter 3- Presentation and

Analysis of Data

63

8. Chapter 4- Interpretation and

Conclusions

82

9. Chapter 5- Suggestions/

Recommendations

84

Bibliography 87

Annexure 88

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LIST OF TABLES

FIGURE NO TITLE PAGE NO

3.1

SHOWING AGE DISTRIBUTION OF INVESTORS

64

3.2

RESPONSE SHOWING OCCUPATION OF INVESTORS

65

3.3

RESPONSE SHOWING MONTHLY INCOME OF

INVESTORS

66

3.4

RESPONSE SHOWING HOW MANY INVESTORS HAS

MADE INVESTMENTS.

67

3.5

RESPONSE SHOWING THE VARIOUS INVESTMENTS

MADE BY INVESTORS

68

3.6

RESPONSE SHOWING PREFERENCE OF FACTORS

WHILE INVESTING

69

3.7

RESPONSE SHOWING NUMBER OF INVESTORS AWARE

ABOUT MUTUAL FUNDS

70

3.8

RESPONSE SHOWING THE VARIOUS SOURCES OF

INFORMATION FOR INVESTORS ABOUT MUTUAL

FUNDS

71

3.9

RESPONSE SHOWING NUMBER OF INVESTORS WHO

MADE INVESTMENTS IN MUTUAL FUNDS

72

3.10

RESPONSE SHOWING THE REASONS FOR NOT

INVESTING IN MUTUAL FUNDS

73

3.11

RESPONSE SHOWING INVESTOR PREFERENCE

TOWARDS DIFFERENT PLANS

74

3.12

RESPONSE SHOWING PREFERENCE OF INEVSTORS

REGARDING THE HOLDING PERIOD OF MUTUAL FUND

INVESTMENTS

75

3.13

RESPONSE SHOWING INVESTOR PREFERENCE

TOWARDS DIFFERENT MUTUAL FUND SCHEMES

76

3.14

RESPONSE SHOWING THE RISK PERCEPTION OF

INVESTORS TOWARDS MUTUAL FUNDS

77

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3.15

RESPONSE SHOWING THE PREFERRED CHANNEL OF

INVESTMENT AMONG INVESTORS

78

3.16

RESPONSE SHOWING PREFERRED MODE OF

INVESTMENT AMONG INVESTORS

79

3.17

RESPONSE SHOWING WHETHER THE INVESTORS ARE

SATISFIED WITH THEIR CURRENT MUTUAL FUND

SCHEMES

80

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LIST OF FIGURES

FIGURE NO TITLE PAGE NO

3.1

SHOWING AGE DISTRIBUTION OF INVESTORS

64

3.2

RESPONSE SHOWING OCCUPATION OF

INVESTORS

65

3.3

RESPONSE SHOWING MONTHLY INCOME OF

INVESTORS

66

3.4

RESPONSE SHOWING HOW MANY INVESTORS

HAS MADE INVESTMENTS.

67

3.5

RESPONSE SHOWING THE VARIOUS

INVESTMENTS MADE BY INVESTORS

68

3.6

RESPONSE SHOWING PREFERENCE OF FACTORS

WHILE INVESTING

69

3.7

RESPONSE SHOWING NUMBER OF INVESTORS

AWARE ABOUT MUTUAL FUNDS

70

3.8

RESPONSE SHOWING THE VARIOUS SOURCES OF

INFORMATION FOR INVESTORS ABOUT

MUTUAL FUNDS

71

3.9

RESPONSE SHOWING NUMBER OF INVESTORS

WHO MADE INVESTMENTS IN MUTUAL FUNDS

72

3.10

RESPONSE SHOWING THE REASONS FOR NOT

INVESTING IN MUTUAL FUNDS

73

3.11

RESPONSE SHOWING INVESTOR PREFERENCE

TOWARDS DIFFERENT PLANS

74

3.12

RESPONSE SHOWING PREFERENCE OF

INEVSTORS REGARDING THE HOLDING PERIOD

OF MUTUAL FUND INVESTMENTS

75

7

3.13

RESPONSE SHOWING INVESTOR PREFERENCE

TOWARDS DIFFERENT MUTUAL FUND SCHEMES

76

3.14

RESPONSE SHOWING THE RISK PERCEPTION OF

INVESTORS TOWARDS MUTUAL FUNDS

77

3.15

RESPONSE SHOWING THE PREFERRED CHANNEL

OF INVESTMENT AMONG INVESTORS

78

3.16

RESPONSE SHOWING PREFERRED MODE OF

INVESTMENT AMONG INVESTORS

79

3.17

RESPONSE SHOWING WHETHER THE INVESTORS

ARE SATISFIED WITH THEIR CURRENT MUTUAL

FUND SCHEMES

80

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SECTION 1

ORGANIZATIONAL

STUDY

HEDGE EQUITIES LTD.

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CHAPTER 1: INTRODUCTION

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1.1 INTRODUCTION

The Indian Broking industry has grown rapidly in the past couple of years.

Financial intermediaries have played a significant role in recovering the chaotic

economic conditions in the recent years and this has therefore given a new life to the

broking industry in the financial sector. Increased competition and newer

opportunities have been a driving force for the changes in the trading pattern,

improvement in technology, diversification of operations and introduction of new

products. The various investor awareness programs and regulations have also

contributed to creating an environment that is favourable for the growth of the

Broking industry in India.

The advent of technology has resulted in rapid increase in the internet-

based broking segment. This rapid growth of online trading in terms of size and

volume has resulted in easy accessibility and faster facilitation through various

technological platforms. A major trend of consolidation is also seen in the current

scenario, as many small stock broking firms find it difficult to retain their clients due

to difficulties in providing value added services.

According to ICRA, in its earlier reports on the Brokerage Sector in FY12-

13- „The industry is witnessing signs of consolidation. The market share of the top

100 brokers on the NSE has increased substantially to ~89% as at August 2013 from

77% as at March 2013 and 73% as at March 2011. With companies needing to

continuously spend on upgrading their technology framework, the current

environment provides opportunity for the larger players to further consolidate their

positions. Further, we believe that the mid-sized brokers are being forced to cut back

and shut businesses in those areas where they do not have scale whereas some of the

smaller brokers face survival issues.‟