An

INTERIM REPORT
ON
Effects of Recession on the Investment
Planning of the Customers.
BY
NITIN KUMAR
(08BSDDU0072)
RELIGARE SECURITIES LIMITED.

An
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 INTERIM REPORT
ON
Effects of Recession on the Investment
Planning of the Customer.
BY
NITIN KUMAR
(08BSDDU0072)
RELIGARE SECURITIES LIMITED.

COMPANY GUIDE FACULTY GUIDE

Mr. RANJAN VERMA Prof. VINAY PRATAP

DATE OF SUBMISSION: April 18th 2009.

Contents
Page No.

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1. ABSTRACT………………………………………………………… 3
2. INTRODUCTION
a. About the Company………………………………… 4
b. About the Project……………………………………. 11
c. Objective of the Project…………………………… 13
3. PROCEDURE……………………………………………………. 14
4. PROGRESS……………………………………………………….. 16
5. APPENDIX
a. Appendix 1………………………………………………. 17
b. Appendix 2………………………………………………. 18
6. REFERENCES……………………………………………………. 19

 ABSTRACT
The project started with the commencement of the SIP at Religare Securities Ltd.
Dehradun branch on 23rd February 2009. The experience so far is full of learning not only
in terms of the Products but also in terms of Consumer Behaviour, Consumer

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 Response, Consumer Buying Pattern, Corporate Culture, Corporate Ethics and
Corporate Working. The span of one and a half months months so far has developed
and enhanced the skill of Selling and Generating Business (corporate jargon) in me.
The part of our work in the company is:
a. Selling Various Products of Religare
b. And to know the Effect of Recession on the Investment Planning of the
Customer.

The cooperation from the faculty guide and the company guide has made this process of
learning more interactive by providing us with various inputs like pressure to perform,
how to deal with it, various ways of genearting leads for sales, understanding the wants
of the customer, the ways to maintain follow ups, creating pipeline, closing the deal, etc.

Mr. Vikas Khanduja, who is my relationship manager, is very supportive and cooperative
and has provided us with various small but useful inputs throughout the period of one and
a half month.

 INTRODUCTION
 About the company:
Religare Securities Limited (RSL), a 100% subsidiary of Religare Enterprises Limited is a
leading equity and securities firm in India. The company currently handles sizeable volumes
traded on NSE and in the realm of online trading and investments; it currently holds a reasonable
share of the market. The major activities and offerings of the company today are Equity Broking,
Depository Participant Services, Portfolio Management Services, International Advisory Fund

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Management Services, Institutional Broking and Research Services. To broaden the gamut of
services offered to its investors, the company offers an online investment portal armed with a
host of revolutionary features. RSL is also working as channel partners for various big names in
the field of Insurance like Birla Sun Life, Aviva Life Insurance, TATA AIG, KOTAK Insurance,
AEGON Religare etc. It is also in the sale process of various products provided by the sister
concerns of Religare like Insurance and Mutual Funds.

 RSL is a member of the National Stock Exchange of India, Bombay Stock

Exchange of India, Depository Participant with National Securities Depository Limited
and Central Depository Services (I) Limited, and is a SEBI approved Portfolio Manager.

 Religare has been constantly innovating in terms of product and services and to
offer such incisive services to specific user segments it has also started the NRI, FII, HNI
and Corporate Servicing groups. These groups take all the portfolio investment decisions
depending upon a client’s risk / return parameter.

 Religare has a very credible Research and Analysis division, which not only
caters to the need of our Institutional clientele, but also gives their valuable inputs to
investment dealers.

 Products offered by Religare Securites Limited

1. EQUITY AND DERIVATIVES

Trading in Equities with Religare truly empowers you for your investment needs. We ensure you
have a superlative trading experience through –

 A highly process driven, diligent approach.

 Powerful Research & Analytics and
 One of the “best-in-class” dealing rooms.

Further, Religare also has one of the largest retail networks, with its presence in more than
1800* locations across more than 490* cities and towns. This means, you can walk into any of
these branches and connect to our highly skilled and dedicated relationship managers to get the
best services.

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 “The Religare edge”

 Pan India footprint

 Powerful research and analytics supported by a pool of highly skilled research analysts
 Ethical business practices
 Offline/Online delivery models
 Single window for all investment needs through your unique CRN

2. DEPOSITORY

RSL provides depository services to investors as a Depository Participant with NSDL and CDSL. The
Depository system in India links issuers, Depository Participants, Depositories National Securities
Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) and clearing
houses / clearing Corporation of Stock Exchanges. These facilitate holding of securities in dematerialized
form and securities transactions are processed by means of account transfers. Our customer centric
account schemes have been designed keeping in mind the investment psychology. With a competent team
of skilled professionals, we manage over 380,000 accounts and have a dedicated customer care centre,
exclusively trained to handle queries from our customers. With our country wide network of branches,
you are never far from Religare depository services. Religare’s depository service offers you a secure,
convenient, paperless and cost effective way to keep track of your investment in shares and other
instruments over a period of time, without the hassle of handling physical documents. Your DP account
with us takes care of your depository needs like dematerialization, rematerialisation, transfer and pledging
of shares, stock lending and borrowing. Your demat account is safe and absolutely secure in our hands,
every debit instruction is executed only after its authenticity is established. Our hi-tech in-house

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capabilities cater to the needs of software maintenance, database administration, network maintenance,
backups and disaster recovery. This extra cover of security has gained the trust of our clients.

3.PORTFOLIO MANAGEMENT SERVICES

Religare offers PMS to address varying investment preferences. As a focused service, PMS pays attention
to details, and portfolios are customized to suit the unique requirements of investors. Religare PMS
currently extends six portfolio management schemes, viz Monarque, Panther, Tortoise, Elephant,
Caterpillar and Leo. Each scheme is designed keeping in mind the varying tastes, objectives and risk
tolerance of our investors

OUR SCHEMES
Monarque

At Religare, we understand ‘those who reign’ have truly inimitable needs and objectives and deserve an
equivalently matchless partner to provide your wealth the care it deserves to grow and be preserved.
Monarque is a portfolio structured to provide higher returns by taking aggressive positions across sectors
and market capitalizations. Monarque is ideally suitable for investors with "High Risk High Return"
appetite.

Panther

The Panther portfolio aims to achieve higher returns by taking aggressive positions across sectors and
market capitalizations. It is suitable for the “High Risk High Return” investor with a strategy to invest
across sectors and take advantage of various market conditions.

Tortoise

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The Tortoise portfolio aims to achieve growth in the portfolio value over a period of time by way of
careful and judicious investment in fundamentally sound companies having good prospects. The scheme
is suitable for the “Medium Risk Medium Return” investor with a strategy to invest in companies which
have consistency in earnings, growth and financial performance.

Elephant

The Elephant portfolio aims to generate steady returns over a longer period by investing in Securities
selected only from BSE 100 and NSE 100 index. This plan is suitable for the “Low Risk Low Return”
investor with a strategy to invest in blue chip companies, as these companies have steady performance
and reduce liquidity risk in the market.

Caterpillar

The Caterpillar portfolio aims to achieve capital appreciation over a long period of time by investing in a
diversified portfolio. This scheme is suitable for investors with a high risk appetite. The investment
strategy would be to invest in scrips which are poised to get a re-rating either because of change in
business, potential fancy for a particular sector in the coming years/months, business diversification
leading to a better operating performance, stocks in their early stages of an upturn or for those which are
in sectors currently ignored by the market.

Leo

Leo is aimed at retail customers and structured to provide medium to long-term capital appreciation by
investing in stocks across the market capitalization range. This scheme is a mix of moderate and
aggressive investment strategies. Its aim is to have a balanced portfolio comprising selected investments
from both Tortoise and Panther. Exposure to Derivatives is taken within permissible regulatory limits.

The Religare Edge

We serve you with a diligent, transparent & process driven approach and ensure that your money gets the
care it deserves.

No experts, only expertise. PMS brought to you by Religare with its solid reputation of an ethical and
scientific approach to financial management. While we offer you the services of a dedicated Relationship
Manager who is at your service 24x7, we do not depend on individual expertise alone. For you, this

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means lower risk, higher dependability and unhindered continuity. Moreover, you are not limited by a
particular individual’s investment style.

No hidden profits. We ensure that a part of the broking at Religare Portfolio Management Services is
through external broking houses. This means that your portfolio is not churned needlessly. Using more
broking firms gives us access to a larger number of reports and analysis, enabling us to make better, more
informed decisions. Furthermore, your portfolio is customized to suit your investment objectives.

Daily disclosures. Religare Portfolio Management Services gives you daily updates on your investment.
You can pinpoint where your money is being invested, 24x7, instead of waiting till the end of the month
to keep track.

No charge till you profit*.So sure are we of our approach to Portfolio Management that we do not
charge you for our services, until your investments start showing profit. With customized investment
options Religare Portfolio Management Services invites you to invest across five broad portfolios to suit
your investment needs

CURRENCY FUTURES
Benefits of Currency Futures

 High Liquidity
 Extended trading hours - 9 am to 5 pm
 Opportunities to reap benefits owing to a highly dynamic market
 Small lot size of only US $1000 with low exchange specified margins

Currency Futures is best suited for-

 SMEs / Individuals involved in Imports/Exports

 Corporate/ Institutions involved in Imports/Exports and anybody else who has foreign
currency exposure

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RESEARCH
We at Religare believe in providing independent research for clients to make investment decisions, with
strict emphasis on self-regulation, avoiding possible conflict of interest in objectivity.

Backed by a strong pool of highly skilled research analysts, we offer varied research products and
services.

Our Research Products

 Fundamental Research

 Technical Research

 Daily Reports

 Intraday trading tech calls

 Intraday Derivative call

 Directional F&O calls

 Structured Products

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  Index Arbitrage

 About the Project:

“EFFECT OF RECESSION ON THE INVESTMENT PALNNING OF
THE CUSTOMERS”
“Even the strongest feel the cracks in the face of an earthquake. The cracks are visible even
during a brief recession. When the markets are disrupted the effect shows. Unemployment is the
greatest dread of any man. How will he feed his family now? Expatriates are being shown the
doors. America which has been home to many people is now turning them out. Branches of
American companies abroad are shutting shop. When there are cuts in the weekly budgets,
priorities changes, when job seekers are dumped there is a big change in lifestyle.

When there are recessions the female employees feel the winds of change first as they are more
vulnerable. They know they will be laid off the jobs. It is difficult to believe, but it is true. Women
who work as receptionists, doing odd jobs in the office, public relations and communications are
picked out when downsizing is done.

Recessions have the tendency to touch sore spots of business. Those which are no longer viable
are shut off. For instance publications that are now low on subscription, advertising and sales
get the first cut. Most companies spend large sums on advertising in print and electronic media.
The PR companies have to work on tighter budgets with maximum mileage. Chances are that
different agencies that were used for different products are now merged. A single agency is
given the job to do. Staff in the office faces retention as now the work load is divided between
only the most necessary employees. The ones left can also forget about the raise in salaries and
also work hard.
As USA faces a visible recession in current times, it is evident that economists are in overdrive
to review the fiscal statistics and give expert opinions. The stock markets have already created a

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panic situation in the country. The biggest lenders are now facing a cash crunch and for the first
time they are also admitting it.

Most of the credit has gone into housing, car, security and insurance schemes. Americans who
have invested in such schemes have only their stocks to offer as collaterals and now are facing
the brunt with embarrassing foreclosures. Does this recessive situation warrant a soul search
amongst the other nations who are depending and banking their economies on Uncle Sam’s
federal reserves? The answer is yes. There has been no sustainable development in major
sectors like housing, medical, small scale business. The US economy has reached its peak and is
slowly going downhill.

Jobs are being outsourced to other countries while Americans are themselves jobless. As Asian
countries are getting more employment, even expatriates are returning home. India and China
are major outsourcing backyards for the US. Cheap goods manufactured in China, Thailand and
other poor countries have hitherto relied on the dollar power for sustenance. As the value of the
dollar falls, the American dream is going bust for many. Whether it is the shoe maker or the food
chain or cola giants or even real estate developers, the earning potential has been cut.”

- Dr. Amartya Sen.

RECESSION, what is it????

A recession is a decline in a country's gross domestic product (GDP) growth for two or more
consecutive quarters of a year. A recession is also preceded by several quarters of slowing
down.

RECESSION, how is it caused???

An economy which grows over a period of time tends to slow down the growth as a part of
the normal economic cycle. An economy typically expands for 6-10 years and tends to go
into a recession for about six months to 2 years. A recession normally takes place when
consumers lose confidence in the growth of the economy and spend less. This leads to a
decreased demand for goods and services, which in turn leads to a decrease in production,
lay-offs and a sharp rise in unemployment. Investors spend less as they fear stocks values
will fall and thus stock markets fall on negative sentiment.

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 Project:

This project focuses on the paradigm shift of the investor from the equity market and
insurance which were purely the financial investment towards the investment in the assets,
real-estate and gold. What has changed the perception of the customer? ; Will it change
again towards the financial investments in the near future? ; etc. are some of the questions
that will be answered in the project.

 Objectives of the Project:

o To know how adversely or positively has recession changed the

perception of an investor towards his investment planning.
o To understand the perspective of the investors towards various
financial services after the recession.
o To know where the customer is interested in allocating his
funds.

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  PROCEDURE
Due to recession, there is a drastic change that has been observed in the investment scenario of
the customer. She/he has become more precautionary and aware about investing into various
products and schemes that are being provided to her/him. Since the value of money is declining
due to inflation the investors’ appetite to invest has reduced tremendously. She/he is more
inclined towards putting in their money more into their settled business or just to stick on with
government securities and insurance cover.

The level of new investments has reduced; people are not ready to invest money in any form of
financial products. With the experience of selling these products to the customer, it was found
that people are reluctant to listen about such financial products and are not ready to invest a
single penny into this volatile market and take risk by investing into the stock market as well as
any product that is related with the stock market.

The procedure that is undertaken for the completion of the project is as follows:

The project is divided into three stages:

a. Questionnaire design and Interview Framing: In this stage the questionnaire will be
designed based on various parameters which will be reflecting the past, present and the
future investment behavior that were, are and will be taken by the investors. This
questionnaire involves various questions that deal with different investment products and
the predicted response of the customer. Also set of questions will be framed for the

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 personal interviews and telephonic interview. Expected sample of 50 customers will be
taken for sampling.*
1

b. Analyzing the data: The data that will be collected through questionnaire, personal
selling, personal interviews and telephonic interviews will be analyzed using various
statistical techniques. Along with those data will also be collected through journals,
magazines and various other sources of secondary data and that data will be used to
analyze the latest updates and trends that are emerging in the market.

c. Results: The last stage in the procedure will be the conclusions that will be
deduced with the survey and thus a clear picture of the objective of the project will be
presented.

1
Depends on the survey.

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 PROGRESS
The progress till the date is the phase of data collection through personal selling, personal
interviews and telephonic interviews is over. The designing of the questionnaire is in
progress with the consultation of the faculty guide and company guide. As far as the
selling that has been done is shown in Appendix 1 and the questions designed for
telephonic and personal interviews are shown in Appendix 2.

Questionnaire making is almost done and they will be filled as soon as they are prepared.
And then the phase of analyzing and conclusion will be taken up.

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 Appendix 1
The Business provided by me to the Company (as per date):

a. Life Insurance: BIRLA SUN LIFE DREAM PLAN: premium 25000 INR.
b. Systematic Investment plans: 2 in numbers of Religare Mutual Funds.
c. Advance Brokerage Product: Dhamaka plus worth Rs. 15000.
d. Demat a/c : 1.
e. Trading a/c: 1.

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 Appendix 2

Sample of Questions framed for Personal and Telephonic interviews:

Q1. What type of risk can you take?

Q2. If you invest in government securities why don’t you invest in Private
banks??

Q3.Where and what type of investments do you make?

Q4. Do you consider that this market will give results in near future??

Q5. Which company do you prefer when it is about investment?

Q6. What plans or investments do you have keeping in mind the future of
yours as well as your family??

Q7.Are you interested in investing your money in this volatile market??

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 REFERENCE
 INTERNET LINKS
 www.google.com
 www.religaresecurities.com
 www.wikipedia.com
 www.altavista.com
 www.religare.in

 MAGAZINES AND JOURNALS

 COMPANY JOURNALS

 ICMR

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