Summer Internship Project On

Customer Perspective Towards Various Investment

Sectors and Bajaj Broking
submitted for the partial fulfilment of the requirement of the degree
of POST GRADUATE DIPLOMA IN MANAGEMENT
(PGDM)
Approved by
All India Council of Technical Education (AICTE)

SUBMITTED BY
Aditya Bhattacharya

Roll No. – UBSBDI4-2/2306

Batch : PGDMBDI4

A.Y. 2023-24

Specialization: Finance

UNDER THE GUIDANCE OF

Prof. Deepak Alva

Submitted To

UNIVERSAL BUSINESS SCHOOL

MUMBAI (KARJAT), 410201

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 DECLARATION BY THE CANDIDATE
I Aditya Bhattacharya hereby certify that the work which is being presented in this Summer
Internship
Project Report entitled- “Customer Perspective Towards Various Investment Sectors and Bajaj Broking”
in partial fulfilment of the requirement for the award of the Post Graduate Diploma
In Management and submitted to the Universal School of Business, Karjat is
an authentic record of my own work carried out during a period from 07th May , 2023 till
30th June, 2023 at Bajaj Broking under the guidance of Prof. Deepak Alva.

The matter presented in this project report has not been submitted by me for the award of any
other degree of this or any other Institute.
Wherever references have been made to intellectual properties of any individual / Institution /
Government / Private / Public Bodies / Universities, research paper, text books, reference
books, research monographs, archives of newspapers, corporate, individuals, business /
Government and any other source of intellectual properties viz., speeches, quotations,
conference proceedings, extracts from the website, working paper, seminal work et al, they
have been clearly indicated, duly acknowledged and included in the Bibliography.

Name of the learner: Aditya Bhattacharya

Signature of the Learner:

This is to certify that the above statement made by the candidate is correct to the best of our
knowledge.

Signature of Faculty Guide:

Name of Company Guide:

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 Feedback Form

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 CERTIFICATE

This is to certify that Mr. / Ms.

Aditya Bhattacharya is a bonafide student of the two year full-time Post Graduate
Diploma in Management (PGDM), (Finance / Marketing / Human Resource/
Operations ), Roll No. UBSBDI4-2/2306 of the institute.

As a part of the All India Council of Technology (AICTE) guidelines, the student has
carried out the Summer Internship
Project Leveraging Product Innovation for Enhanced Market Analysis and Customer
Engagement at Bajaj Broking at Bajaj Broking during the period from April 15 to
June 21 under my guidance in partial fulfilment of requirement for the completion
PGDM as prescribed by the All India Council of Technical Education (AICTE). This
Summer Internship Project Report is the record of authentic work carried out by him /
her during the period from June 2022 to July 2022.

Name & Signature of Name & Signature of

(Faculty Guide) (Program Director)

Place:
Date:

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 Certificate by the Company

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ACKNOWLEDGEMENT

It gives me immense pleasure to present this Concurrent Project Report. However, it would
not have been possible without the help and support of all the team members of Bajaj
Broking Ltd.
I would like to thank my company guide Pradeep Nayak Sridhar and Faculty guide Prof. Deepak
Alva for
guiding me in my tenure of internship on 15th April to 21st June 2024 Without their support and
guidance,
I wouldn’t have come so far to prepare this report.
I would like to express my thankfulness to Corporate Relations team of Universal Business
School, who gave me this great opportunity to work on this Interesting project.
I am also grateful to my loving parents and my kind friends whose prayers, affection and
support are always a source of encouragement. Their suggestions and supply of information
were really very valuable and helpful to me. Their continuous encouragement and support
helped me for completing this project successfully.

Name: Aditya Bhattacharya

Batch: PGDMBDI4
Roll No: UBSBDI4-2/2306
Specialization: Finance
Universal AI University, Mumbai (Karjat)

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 SUMMER INTERNSHIP PROJECT SUBMISSION
(FOR OFFICE USE ONLY)

Received two copies of Hard Bound Book and Softcopy of the Summer Internship
Project Report and two copies of Synopsis –
Mr. / Ms.
Roll
No. Specialization: in
partial fulfilment of requirement for the completion PGDM as prescribed by the All India
Council of Technology (AICTE).

Project
Titled:

Name of the
Organisation:

Duration: From To
Name of Faculty Supervisor:

Place:
Date:

Receiver’s Signature:
Receivers Name:

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 CONTENTS

Chapter
Details Page No.
No.
Title Page i
Candidate’s Declaration ii
Certificate by the Company iii
Certificate by the Institute iv
Acknowledgement v
Abstract / Executive
vi
Summary
List of Abbreviations xii
List of Figures/ Illustrations xv
List of Tables xvi
List of Charts xviii
1 INTRODUCTION 13-31
1.1 Background 13-15
Need and Significance of 16-17
1.2
the Study
Nature and Scope for the 18
1.3
Study
1.4 Research Problem 19
1.5 Research Question 20
Aims and Objectives of 21
1.6
Study
1.7 About the Company 22-31
1.8 Scheme of Chapters
2 LITERATURE REVIEW 32-39
2.1 About the Industry 32-34
Review of Opportunities and 35-36
2.2
Challenges in the Industry
Literature review related to 37-38
2.3
your topic
RESEARCH
3 39-53
METHODOLOGY
3.1 Problem Identification 40-41
3.2 Methodology Adopted 41
3.3 Data Collection Methods 42
Data Analysis Tools and 45-52
3.4
Techniques
DATA DESCRIPTION &
4 53-56
ANALYSIS
4.1 (as per your topic)

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4.2
OR
4 DISCUSSIONS
4.1 (as per your topic)
4.2
SUMMARY &
5 57-58
CONCLUSION
5.1 Findings & Conclusions 57
Recommendations from the 58
5.2
study
5.3 Learning Outcomes
Strength and Limitations of
5.3
Study
5.4 Future Scope of Research
BIBLIOGRAPHY & 59
REFERENCES

ANNEXURE I-
Questionnaire if any

ANNEXURE II- Letter to

the Company, if any

ANNEXURE III- Letter to

the Respondents, if any

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 EXECUTIVE SUMMARY

During my tenure at Bajaj Financial Securities Limited (BFSL) from April 15, 2024, to June 21, 2024,
I had the opportunity to gain valuable insight into the operations of a leading financial firm It also
included providing support for goals that have been achieved. This experience has been instrumental
in my professional development, providing a thorough understanding of sales strategies and customer
relationship management.

During my internship, I have mainly been assisting the BFSL sales team in widening the customer
base and increasing customer satisfaction. Activities include attending sales meetings, conducting
market research, and preparing sales presentations. Key learning was the importance of personal
interaction with the customers and how effective communication may alter sales outcome, apart from
the fact that the customers are involved in feedback surveys and improvement suggestions are most
welcome for betterment of service delivery. Equally important, I consider seeing the BFSL way of
integrating environment, social, and governance into business strategy: how the company actually
delivered on sustainability and engagement—the very things that paved its long-term path to success.
Their commitment to ESG principles got adequately clear when one sees transparency in reporting and
proactive action toward stakeholders' concerns. ESG objectives—this alignment will not only give
BFSL more strength in terms of its market positioning but also increase its visibility in the eyes of
customers and investors. In sum, my internship at BFSL was a very invigorating exposure, giving me
practical skills and knowledge in sales and customer management and boosting my understanding of
the financial services sector and the critical role ESG plays in shaping business strategies. It was also
through the guidance and support of the BFSL team, which has been imperative in my development,
and I do not doubt that all the knowledge and skills learned from the experience will be of immense
value in my future career pursuits.

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 CHAPTER-I

INTRODUCTION

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 BACKGROUND

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 Bajaj Broking is a formidable intermediary in the relentlessly dynamic Indian equity market. It
was incorporated in 1995, and the ultimate Parent of the company—the Bajaj Group—an
extremely reputable group, represents the keystone of financial services and consumer durables
in India. This heritage, therefore, has built very strong trust and brand recognition in the name
of Bajaj Broking.

The journey of Bajaj Broking has been a roller-coaster ride of growth in the vibrant Indian
stock market. Though earlier it sharply focused on the retail investor base through a pan-India
geographic reach, now there is a strong online platform to complement the physical one. This
caters to the widening investor base that seeks easy and technology-enabled investment
opportunities.

While many new-age FinTech startups have started dominating the scene, there are several
inherent strengths that make Bajaj Broking a very competitive player in the marketplace. Some
of them are as follows:

Inherited Brand Legacy: The Bajaj brand is extremely strong in the Indian market and
commands much-needed trust and confidence among investors.

Huge Network of Branches: Bajaj Broking has an already established network of physical
branches spread across India that will help provide personalized service and F2F interaction to
investors looking for traditional investment channels.

Investor Education: This is one of the grudge marks of Bajaj Broking, laying emphasis on
investor education. They are committed to providing resources and guiding discretionary fund
and helping investors to make mature investment decisions.

The stock broking industry in India is in a constant process of change. In this atmosphere of
continuous change, the company must flex itself to innovate and adapt to changing investor
needs to continue the leader. The Indian financial market thrives on dynamism. Navigating
through this ever-changing landscape, investors want to have trusted partners like Bajaj
Broking. From core Demat and Trading accounts to more advanced facilities in US Investing
and Stock SIPs, Bajaj Broking offers an entire bouquet of products. The present work would,
therefore, focus on how Bajaj Broking can utilize this product innovation toward the realization
of two very key objectives:

• Improved market analysis: getting a more profound sense of market trends and opportunities.

• Better Customer Relationship: Building a stronger relationship with the existing and potential
customers.

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 Analysing Product Landscape of Bajaj Broking:

Bajaj Broking offers multiple products to meet various investor needs, which include:

• Core Investment Accounts:

o Demat Account: It's the base for keeping all your investments in an electronic form. You
cannot trade in stocks and other financial instruments without having a demat account.

o Trading Account: The channel to trigger buy and sell mandates to execute your investment
strategies.

• Investment Options:

o INSTANCE Initial Public Offer (IPO) : Participation in IPOs of new companies, offering the
chance to invest at ground floor level.

o MARGIN TRADING FACILITY (MTF) : Access to leverage for potentially amplified

returns, but with magnified risk.

o US INVESTING: The ability to diversify your portfolio by investing in US stocks and

securities.

o BOND : Investment in Govt. and Corporate Bonds for a potentially stable source of income.

• ADVANCED TOOLS AND SERVICES:

# Shadow Research and Advisory: Draw upon the esteemed resources of market analysis,
research reports, and probably recommendations by advisors to make significantly informed
investment decisions.

# Basket Order: The easily run portfolio by just one transaction involving purchase or selling
group of securities is what comprises basket order.

# GTT Order Good Till Triggered: Place an order which shall get extinguished on the
attainment of a predefined price level for strategic investing.

# Lancement of Stock SIP (Systematic Investment Plan): A potential disciplined investing

program in which one can invest a fixed sum in certain stocks at regular intervals.

Project Springboard:

Through this project, I would try and see exactly how Bajaj Broking can use its product
portfolio to back the following:

1. Data-driven market insight: Whether data generated from some specific products — like
MTF activity — could identify market trends and inform customer recommendations.

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 2. Customer Engagement: Can products such as stock SIPS or research reports engage new
customers and sensitize existing ones at the right investment opportunities, based on the
customers' profiles, so as to establish mutually beneficial long-term relationships?

Thus, the project will try to bring in its inputs on all these aspects to optimize Bajaj Broking's
strategy toward market analysis and engage with the customers. It will, therefore, ultimately try
to empower investors about the better understanding of the markets and personalized
investment strategies and non SAFE business growth for Bajaj Broking.

NEED AND SIGNIFICANCE OF THE STUDY

The research project shall focus on the crucial aspect of customer perception regarding
investment segments and their experience with Bajaj Broking. This shall be considerably
valuable both to the investors eyeing the vibrant Indian market and Bajaj Broking itself in
taking strategic decisions.

Investor Empowerment:

• Navigating a Shifting Landscape: The Indian stock market is liquid. This study therefore
brings out the sectors that attract the attention of investors at present and the reasons
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 underlying the same. Therefore, the investors will be able to have an overview of the situation
as new trends unfold and may have the opportunity to exploit those with exciting potential.

It is more than uncomplicated identification of preferred sectors; this report goes deep into how
investors think about the risk relationships within each respective sector. Do they favor the
relative stability of, say, FMCG, or feel themselves drawn to the potentially higher returns—
coupled with increased risk—associated with technology startups? This enables investors to
make informed decisions in complete harmony with their risk tolerance and portfolio goals.

• Emotional Misalignment: How psychological biases, such as overconfidence or herd

mentality, may impact investor decisions related to certain sectors. Bringing these biases into
the light allows investors to make more rational choices based on sound, data-driven analyses
rather than falling prey to impulsive emotions.

Enhancing Bajaj Broking Services:

• Targeted strategies: By getting a fine grasp of investor preference regarding sectors and risk
profiles, customer base segmentation and appropriate campaigns can be devised by Bajaj
Broking. This will ensure that 'right' investors are being targeted with the most relevant
investment products and services, bringing out maximum impact of those offered.

It is in this regard that the findings of the present study could also inform the development of
investment tools and educational resources, specifically tailored to address the needs and
interests of the investors. In this light, Bajaj Broking shall frame sector-specific research
reports or undertake online tutorials/interactive webinars so as to empower investors with the
necessary knowledge to make appropriate choices.

• Building Stronger Relationships: By understanding the concerns that investors in particular

sectors have, Bajaj Broking will be able to address those concerns at the time of onboarding
proactively in order to reestablish faith and confidence from the very beginning. Also, it would
be helpful to identify factors influencing customer retention. Addressing this could help Bajaj
Broking in building stronger and long-term relationships.

Broader Impact:

• Inclusive Finance for All: How the research may serve the purpose of financial inclusions is
that investing information will be more at one's fingertips and easy to understand for any retail
investor. This gives them a better platform to participate actively in the financial markets,
hence having chances of growing their wealth over time.

• Market Intelligence: The research outcome goes beyond Bajaj Broking to create
valuable insights related to overall investor sentiment and market trends. This intelligence will
be a potent tool for the entire financial services industry in understanding and catering to the
changing needs of investors.

Further Research Questions:

• Generational Shifts: How have investment preferences either changed or remained the
same across generations—for example, millennials versus baby boomers?

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 • Influence of Financial Literacy: Will a higher degree of literacy on financial aspects actually
lead to greater eligibility in terms of investment opportunities with respect to specific sectors?

NATURE AND SCOPE OF THIS STUDY

The project is qualitative, going into the subjective domain of customer perceptions. It primarily
seeks to bring to the fore what investors have perceived about the various investment sectors and
their experiences with Bajaj Broking. Tailored Scope The scope of the studies has been designed to
cover two focus areas:

1. Investor Preference: This part of the research will deal with which investment arenas—
equities, real estate, mutual funds, etc.—have now become very exciting to many investors and
their reasons for doing so. It shall further explore what forces drive such decisions: risk tolerance,
expected returns, and the changing trends in the market.

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 2. Review of Bajaj Broking: This paper will assess the perception of the investors about the
services of Bajaj Broking vis-à-vis their desired sectors for the investment. This can include
aspects relating to the ease of accessing the investment-related information, availability and quality
of the learning facilities, ease of use of the online/trading platform, and customer satisfaction.

Knowing the Boundations:

The scope's boundaries should be recognized to let the research stay focused and remain under
control. Key limitations are as follows:

• Retail Investor Focus: Perhaps the main focus of the study would be the retail investors N,
given the investment strategies adopted and additional factors by institutional investors vary
according to the nature of the investor.

• Timeframe Specificity: The research would most likely capture the investor sentiment
pertaining to a time period, probably the last year, to help understand the current trends.

• Geographical Considerations: Depending on the availability of project resources, this study

would focus on either a certain geographical region in India or the whole country. Out of Scope:

• Financial Advice Disclaimer: The basic purpose is to understand the investor sentiment, not to
provide any financial advice or recommendation with respect to any investment strategy.

• Industry-Wide Comparison: This could be an industry-wide comparison entailing all brokerages,

and hence may not align with the scope of this very project.

RESEARCH PROBLEM

The Indian investment landscape is characterized by multiple sectors with their distinct
characteristics, making them attractive to a diverse set of investors with different risk tolerance
and return expectations. In this context, the critical gap in understanding remains regarding
how the investor sentiment towards these numerous sectors translates into their investment
decisions and interfaces with brokerage services like those offered by Bajaj Broking.
Following are the key issues this research project will address:

• Unvealing the nature of investor preferences: what are the determinants of the investment
preference of investors in different sectors? For example, risk tolerance, growth potential, or
market trends.
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 • Bridging the Gap: At any point in time, do investors develop positive sentiment towards a
sector that does not implicitly manifest in significant investment? If so, what may be the
possible reasons for lack of matching?

• Optimising Brokerage Services: How can Bajaj Broking use such insights about investor
sentiment in its optimum market analysis and customer engagement with market strategy
formulation for any particular sector? Is Bajaj Broking keeping the investors' needs in terms of
investment options and required information satisfied?

The research focuses on the following issues with the purpose of helping:

• Investors: Developing a better understanding of their own investment behavior and an ability
to make informed choices on risk tolerance and sectoral preferences.

• Bajaj Broking: Knowing areas for service improvement and tailoring such services to the
more established needs of investors in any given sector. This is in addition to that through
sector-specific education, investment gadgets, or campaigns in all of its marketing.

• Financial Services Industry: Understanding the role of investor sentiment and brokerage
services would also extend to the broader financial services industry. Such knowledge may be
useful in framing more effective products and services that may be offered to investors with
regard to their needs in the various sectors.

It indicates exactly how much the research problem is beyond mere understanding of investor
preferences or how sentiment finds its way into actual investment behavior, and how such
knowledge will enable Bajaj Broking to improve market analysis and customer engagement
strategies.

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 RESEARCH QUESTIONS

• Investor preference decoding: What are the dominant bothering factors in the minds of
investors while allocating their capital across different investment sectors, like equity, real
estate, mutual funds, and others in the Indian market? The question goes straight to the heart
of the major motivations for investors' decisions to deploy money in any sector, considering
risk tolerance, expected returns, or simple market trends..

• Improvement in market analysis by Bajaj Broking: Consider how Bajaj Broking can use the
investor sentiment insight to fine-tune its market analysis with respect to sector-specific
identification. The question is, therefore, how customer sentiment data can be used by Bajaj
Broking to identify emerging trends, possible risks, and opportunities within sectors and
improve its capabilities in terms of market analysis.

• Customer engagement optimization by sentiment: What can Bajaj Broking do to harness this
information on customer sentiment and ensure it is used to advocate customer engagement in a
stronger way for certain investment sectors? The question, thus, dwells on ways that Bajaj
Broking could make use of customer sentiments in segmenting its approach. These would
include sector-directed campaigns, sector-oriented education, or individually fitted investment
advice by analyzing sentiment.

• Interaction with Financial Literacy: Does the level of financial literacy influence how
investors close the gap between sentiment and actual investment in said sectors? The question
gets at a potential impact of financial literacy on investor behavior. Investors who have greater
literacy about the financial markets might be better positioned to take positive sentiment and
channel it into informed investment decisions.

• Is there a significant difference in awareness about investment options available in the

market between men and women?

• Does the income level of investors influence the percentage of their income they allocate to
various investment options?

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 Aim and Objectives of the study

The research will look into the very disconnect between investor sentiment and actual
investment choices within the Indian market, particularly for Bajaj Broking. Herewith is how
the gap shall be bridged:

1. Decoding Investor Preferences: We will understand what drives their investment decisions
across different asset classes, such as equities or real estate. What are the reasons for choosing
any one sector over another? It could be risk tolerance or the possibility of returns and market
trends.

2. Sentiment-Action Gap: There are some times when the good sentiment towards any
particular sector does not get translated into actual investments. We will try to understand the
possible reasons behind this "gap," whether knowledge deficit or limitations of products from
Bajaj Broking.

3. Empathy in Bajaj Broking's Market Analysis: Investor sentiment data is likely to aid Bajaj
Broking in finetuning its market analysis on sector-specific market trends. Effectively, it
would mean detection of emerging trends, risks, and opportunities.

4. Sentiment for Better Customer Engagement: Investor sentiment data can also act as a potent
tool for Bajaj Broking to get bespoke sector-dependent customer engagement. This would start
from segment-specific campaigns and sector-specific knowledge and education to tailored
investment advice.

5. Financial Literacy and Informed Choices: Does financial literacy play a role in how well
investors bridge this sentiment-action gap? We'll investigate the potential impact of financial
knowledge on translating positive sentiments into informed investment decisions.
By achieving these objectives, the study will contribute to enlightening investors about making
informed decisions based on their risk-taking ability and sector preference. Further, the
findings can be utilised by Bajaj Broking to alter its strategies, thereby increasing customer
bölgection and providing sustainable growth to the company.

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 About the Company

A 100% subsidiary of Bajaj Finance Limited, Bajaj Financial Securities Limited is set to disrupt the
discount broking space through its unique offerings and comprehensive capital market solutions. With
secure technology and advanced platforms, you can trade in equity cash & derivatives at one of the
lowest brokerage rates in the industry.
Besides, you can avail of Margin Trade Financing at one of the lowest interest rates and make the
most of market opportunities. What’s more, invest in IPOs and Mutual Funds and get easy access to
Loan Against Securities offered by Bajaj Finance Limited.

Business Activities:

Bajaj Finance Securities Ltd is primarily engaged in broking and depository services.
Ownership:

Bajaj Finance Securities Ltd is fully owned by Bajaj Finance Limited, which is part of the larger Bajaj
FinServ group.
Associated Companies:

Snapwork Technologies Pvt. Bajaj Finance Securities Ltd, owned 41.5% by Bajaj Finance Ltd.,
invested a total of Rs 93 crore in ABFL to bolster the company's technology roadmap. By the Act,
Snapwork was an associate of the Company upon acquisition The Company is in the business of
designing, developing, consultancy, supplying (computer-based) products export-import and
marketing, and dealing in one or more of the fields as software technology for all sectors., And its
implementation, research, and development thereof. Financial Statements also contain investments
done in Snapwork E Post acquisition of shares as mentioned above, Snapwork made a profit of C 4.03
crore out of which the Company's share of profit was Rupees 1.67 crore.

Bajaj Financial Securities Limited's Corporate Identification Number is (CIN)

U67120PN2010PLC136026 and its registration number is 136026. Its Email address is
[email protected] and its registered address is Bajaj Auto Ltd complex Mumbai - Pune
Road Akurdi Pune Pune MH 411035 IN.
MILESTONES
• Top Performer Primary Market Segment Equity - IPO / FPO Bids in FY-2019-20
• Top 5 Performer Primary Market Segment by BSE in FY-2021-22
• Top 5 Performer OFS Segment by BSE by FY-2021-22
• 3rd Place NPS Diwas Recognition Programme Online POP (Fintech) Category by Year ending
2022-23.

BOARD & MISSION

• Vision
“We aim to revolutionize the trading experience in the country by taking steps to make trading
accessible, affordable, and glitch-free for all.”

• Mission
“We are dedicated to creating long-term value, exceeding our customer expectations, and becoming
the first choice for opening a Demat account.”
• Bajaj Broking’s Core Values
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1 Humility: Grounded and modest sense of oneself.

2 Open & Transparent: To be honest, straightforward, and non-political in presenting and

listening to personal thoughts and views.
3 Integrity: Rightful conduct in all dealings with people, money, and company assets.
4 Emotional Intelligence: Awareness and management of emotions, empathize with others and
develop positive relationships.
5 on-conformist Intellectual Capital: A non-conformist refuse to conform to established
customs, attitudes, or ideas. They are highly passionate people, challenge the status quo and are
constantly seeking to break the mold. They are highly tenacious, and their ambition does not accept
most organizational boundaries.
6 Rewarding Success: To recognize, celebrate and reward for delivering results, making
exceptional efforts, and taking initiative.
7 Entrepreneurship: A mindset that makes one sense opportunities, to create new businesses or
new ways of doing things.
8 High on Ambition: Desire, conviction, and a can-do attitude to achieve success.
9 Hard work and Drive: Willing to put in significant hard work personally and ensure that the
team works equally hard.
10 Ownership: Personally responsible and accountable for the work and people; to have the
courage to make decisions and own the consequences.
11 Execution Rigor: End-to-end planning, detailing, monitoring, and follow-up to lead to
committed results.

LEAD FINANCIAL INDICATORS (2023-24) Q3

Metric Q3 FY24 Q3 FY23 Year-Over-Year Change

Customer Franchise 38K - -

Added
Total Customer 656K - -
Franchise
Margin Trading ₹ 3,167 crore ₹ 1,080 crore 193%
Finance AUM
Geographic Presence 35 locations - -

New Locations Added 4 - -

Net Total Income ₹ 74 crore ₹ 46 crore 61%

Total Employee 745 - -

Headcount
Profit Before Tax ₹ 22 crore ₹ 5 crore 340%

Profit After Tax ₹ 16 crore ₹ 3 crore 433%

New Features on Web

and App Platforms 43 - -

Buyer Guidelines:

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During the fiscal third quarter, the company added 38,000 new customers to its franchise. As of
December 31, 2023, total retail individual (HNI) consumer rights reached 656,000 units.
Margin Trade Financial AUM: Assets under management (AUM) for margin trading funds grew by a
whopping 193%, to ₹ 3,167 crore as at 31 December 2023, as against ₹ 1,080 crore at 31 December
2022
Territory Availability: The company’s geographic coverage expanded to 35 locations. Four new
locations were added in the third quarter of the fiscal year.
Total Income: Total revenue in FY3 was ₹ 74 crore, up 61% from ₹ 46 crore in FY3.
Number of Executive Officers: As of December 31, 2023, there were 745 employees. Profit before
tax: Profit before tax rose sharply, reaching ₹ 22 crore in FY3 from ₹ 5 crore in FY3, and showing a
growth of 340%.
PRODUCTS OF THE ORGANIZATION

BFSL offers a wide range of financial products and services, including:

• Stockbroking.
• Depository participant services
• Wealth management solutions
• Investment advisory services
1. Equity Trading:

Delivery Trading: Allows investors to buy and sell shares for delivery at the end of the trading day.
Intraday Trading: Enables traders to buy and sell shares within the same trading day, closing all
positions before the market closes.
2. Derivative Trading:

Futures Trading: Offers trading in equity futures, which are contracts that obligate the buyer to
purchase or sell a specific quantity of a security at a predetermined price on a specific date.
Options Trading: Provides trading in equity options, which give the buyer the right, but not the
obligation, to buy or sell a specific quantity of a security at a predetermined price on or before a
specific date.
3. Margin Trade Financing (MTF): Allows investors to purchase securities with a larger value
than the available funds, using leverage and paying interest on the borrowed amount.
4. Mutual Funds: Offers a range of mutual fund products for investment.
5. Fixed Deposits: Provides fixed deposit options for investors.
6. Insurance Products: Distributes insurance products to its clients.
7. IPO (Initial Public Offering) Financing: Offers financing options for investors participating in
initial public offerings (IPOs).
8. Spread Financing: Provides financing for investors to trade in spreads, which involve buying
one security and selling another with a similar expiration date.
9. Loans Against Securities (LAS): Offers loans against securities held in the Demat account,
allowing investors to access funds without selling their shares.

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 ORGANIZATION STRUCTURE:

EXPLANATION OF ORGANIZATIONAL STRUCTURE

The diagram shows the organizational structure of the Bajaj Group, highlighting Bajaj Finance
Limited and its associated companies. Bajaj Holdings and Investment Ltd (BHIL) with 39.06% and
Bajaj Auto Ltd with 34.16% top the list. Bajaj Finserv Limited is a financial services company, with
major shareholdings in various sectors, including Bajaj Finance Limited (51.42%), Bajaj Allianz Life
Insurance Company Limited (74%), and Bajaj Allianz

General Insurance Company Limited (74%).). Bajaj Finserv, a company listed under Bajaj Finserv,
focuses on lending and owns 100% of Bajaj Housing Finance Ltd (housing loans) and Bajaj Financial
Securities Ltd (brokerage and deposit services) Furthermore, Bajaj Finserv Health Ltd (healthcare
solutions), Bajaj Finserv Ventures Limited (Alternative Investments), and Bajaj Finserv Asset
Management Limited (Mutual Fund) are 100% owned by Bajaj Finserv Direct Limited (Digital
Marketplace). a hold 80.13%. This strategy highlights the diverse but integrated approaches of Bajaj
Group in finance and insurance.

DEPARTMENTS:
 Sales and Marketing Department
 Retail Sales
 Institutional Sales
 Digital Marketing
 Operations Department
 Trading Operations
 Settlement Operations
 Finance Department
 Accounting
 Financial Planning and Analysis
 Compliance and Risk Management Department

25 | P a g e
  Regulatory Compliance
 Risk Assessment
 Human Resources Department
 Recruitment
 Training and Development
 Technology and IT Department
 IT Infrastructure
 Software Development
 Customer Service Department
 Support Center
 Client Relations

WORKFLOW MODEL:

Figure 5
Source:

Business leads

1. The top of the sales funnel - TOFU (Top of the Funnel) Awareness stage
Bottom of the Funnel: This is when a potential customer gets to know the business or its offering.
26 | P a g e
Marketing works to entertain a broad audience to attract interest and exposure.

That might mean running ads if you were doing securities broking, hosting educational webinars, content
marketing & social media campaigns to educate a new audience on the investment opportunities and the
services they could acquire via the brokerage.

2. Middle of the Funnel - MOFU:

This is where your potential customers are considering and weighing their options between the different
products or services.
It centers on leads and targets nurturing leads with long-tail, detailed, or broadly considered information, which
provides answers and offers value

27 | P a g e
Purchasers of securities brokerage services, for example, would likely demand individual counseling and/or be
provided with comprehensive explanations regarding the full range of trading alternatives available, some of
which may be compared with other brokerage services and/or incorporate client evaluations.

3. Purchase Stage (BOFU)

This is the last, and naturally, at this point, the leads will start to buy.

Attention is focused on turning leads into customers with the help of such things as special offers, a free trial,
or a one-hour demo.

For the securities broking sector, this may mean facilitating the process of account opening for clients,
providing clients with bespoke investment opportunities, or delivering an end-to-end onboarding service to
enable investment.

A "leaky" funnel means not all your leads or potential customers who hit the top of your funnel at the
awareness stage will transition down to the bottom of the funnel to the purchase stage. Each stage sees losses,
in that some potentials never materialize into customers. The whole purpose is to reduce these leaks and hence
conversion DATA.

In the context of a securities brokerage, the leaky conversion funnel highlights the importance of effectively
guiding potential investors through each stage, from initial awareness to the final purchase, while addressing
their concerns and providing value at each step to minimize drop-offs and increase the number of clients who
ultimately invest through the brokerage.

FINANCIAL STATEMENTS OF THE COMPANY:

Loan Against
Property (LAP)
BHFL offers
Loan Against
Property (LAP)
to SMEs,
MSMEs, self-
employed
individuals, and
professionals
against mortgage
of their
residential and
commercial
properties. It
uses both direct
and indirect
channels for
sourcing LAP
business. This
LAP business is
28 | P a g e
 present in 29 locations across India with an average loan value of H 7.2
million. The AUM stood at H 6,538 crore, a growth of 5% over
FY2022.

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HNI Demat and Broking: Demat and broking services to affluent HNI clients, who get an option of
call-in-trade service through dedicated traders. It offers customized brokerage plans to such clients
which can be availed based upon their trading needs. HNI clients with high trading volumes are
provided with the option of a trading terminal. As of 31 March 2023, BFinsec had over 22,500 HNI
clients.
Retail Demat and Broking: Demat and broking services to retail clients through a set of customized
discount broking plans to choose from based on the trading needs. BFinsec offers a trading facility
over a web portal and a mobile app. Retail clients can also avail of value-added services of call-in-
trade from BFinsec. During the year BFinsec added over 216,850 customers. Apart from acquisition,
BFinsec is also focusing on customer activation. As of 31 March 2023, BFinsec had over 542,600
such customers.
Margin Trade Financing (MTF): MTF facility to both HNI and retail clients, who can purchase
approved securities by paying the required margin, and the balance amount is funded by BFinsec. As
of 31 March 2023, the MTF AUM stood at H 1,064 crore. BFinsec generated a total income of H 204
crore and profit after tax of H 8 crore in FY2023.
Profit and Loss Statement

Bajaj Financial Securities saw ₹670.38 crore in equity investment and ₹7,478 crore in
short-term loans given.

30 | P a g e
COMPETITORS INFORMATION:

1. Zerodha

History: Founded in 2010 by Nithin Kamath

and Nikhil Kamath, Zerodha pioneered the
discount broking model in India.

Current Position: It is the largest stockbroker

in India by the number of active clients,
boasting over 9 million clients. Zerodha has
revolutionized the industry with its zero
brokerage for equity investments and minimal
fees for trading in derivatives (Trade Brains)
(Top10StockBrokers).

2. Upstox

History: Originally known as RKSV

Securities, Upstox was founded in 2010 and
rebranded in 2016. It is backed by notable
investors including Ratan Tata.

Current Position: Upstox is the second-

largest broker in India with a significant
market share and a valuation of over $3
billion. It offers a robust trading platform
with competitive brokerage rates (Trade
Brains) (Top10StockBrokers).

3. Angel One (formerly Angel Broking)

History: Established in 1987, Angel One is

one of the oldest brokerage firms in India.

Current Position: Angel One has adapted to

the digital age with a strong online presence
and offers a wide range of financial services,
including advisory and investment options
(Top10StockBrokers).

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 4. ICICI Direct (ICICI Securities)

History: Part of ICICI Bank, ICICI Direct

offers a comprehensive 3-in-1 account
integrating banking, trading, and demat
services.

Current Position: It ranks among the top

brokers in India, known for its premium
services and a large customer base exceeding
1.8 million active clients (Infinite Broker)
(Top10StockBrokers).

5. HDFC Securities

History: A subsidiary of HDFC Bank,

HDFC Securities has been a prominent
player in the Indian broking space.

Current Position: With over 1 million active

clients, it provides both online and offline
trading facilities, including a 3-in-1 account
(Infinite Broker) (Top10StockBrokers).

6. Kotak Securities

History: Founded in 1994 as part of the

Kotak Mahindra Group, it offers integrated
banking and brokerage services.

Current Position: Kotak Securities has over

1.2 million active clients and is known for
its extensive branch network and
comprehensive service offerings (Infinite
Broker) (Top10StockBrokers).

32 | P a g e
 7. IIFL Finance

History: India Infoline was established in the

year 1995 and has grown out to be a
diversified financial services company.
Present Status: IIFL Securities has over
875,000 active clients and deals with
numerous varieties of financial products and
services (Top10StockBrokers).

8.Motilal Oswal Financial Services

History:
Incorporated
back in the
year 1987,
Motilal
Oswal is a
well-known
name in
institutional
and retail
broking.
Current Position: Services almost 880,000 active traders with sundry investment
options and solid research support—infinite broker, Top10StockBrokers.

9. Groww

History: Groww is a relatively new entrant

that started as a mutual fund distribution
platform and eventually entered the stock
broking business.

Current Position: It became extremely

popular, especially with young investors,
because of the user-friendly app and
competitive brokerage rates.
33 | P a g e
 CHAPTER - 2

Literature Review
Navigating the Indian Stock Broking Landscape: Past, Present, and Investor
Sentiment

The stock broking industry in India is dynamic, with a rich past and an exciting
future. Here, in brief, is an excursion into how it has evolved over the years up to
its present form, and how it dovetails with the sentiment of investors in the stock
market:

From Pits to Platforms: A Historical Trajectory

It was very concentrated in a few state-controlled brokerages, each working

through physical trading floors. All this underwent a change in the 1990s with
economic liberalization, private players, electronic platforms, and rationalized
regulations—which all led to a huge participation from the investor class. The
first decade of the 21st century witnessed the rise of low-cost online execution
by discount brokers.

Today, the industry prospers with the rise of the middle class, growing
disposable income, and an aspiration to create wealth. It is further reinforced by :

• Increasing Internet Penetration : Online platforms have made investing a mass

phenomenon.

• Financial Literacy Programs: Government and social sector initiatives and

educating the common man who can then think about it.

• Digital Investing Platforms: Fintech Unicorns and large players offer easy-to-
invest channels

Investor Choices: It's a Mixed Bag,

The kind of choices there exist for investors are:

• Full-Service Brokers: These, typically, are the more traditional brokers offering
34 | P a g e
 full services, which include investment advisory, research, and portfolio
management but do so at a premium.

• Discount Brokers: Specialized in low-cost execution, discount brokers typically

offer basic trading platforms, with minor advisory services.

Online Brokers: Harnessing technology to the fullest, online brokers offer

convenient and affordable trading platforms over the internet, which can allow
for mobile apps and automated trading tools.

OPPORTUNITIES:

Widening of the Investor Base: In this case, the young middle class with more
money in the pocket and growing spending provides a perfect opportunity. This
type of designing, which includes spread programs and capital market awareness
and literacy campaigns, touches the chord of the people for their participation in
the stock market.

• Personalization through BDA analysis: This will include autonomous agents.

35 | P a g e
 This way, individualistic advice and investment customization in
recommendations, pertaining to the risk an individual can allow and to its
financial goals, leading to tailor-made advice, will assist such entities in
deepening their relationships with clients by improving investment results.

• Rise of mobile trading: With the proliferation of smartphone penetration levels,

these trader-friendly mobile trading apps have received the kind of importance
that can be expected to acquire a bigger user base. Thus, equally important
drivers of convenience and on-the-go access could be used to rope in newer
investors and hence, boost the trade activities..

How to Overcome the Following Challenges:

• The competition gets really stiff between established market players and
modern Fintech entities that effectively fight for their rightful place. For an
output, this crowded landscape requires quintessentially innovation and
differentiation in service offerings and price-competitive models.

• Technological Disruption: The industry, because of its constant changing

nature, is equipping itself with upcoming technology like Blockchain and AI to
help it cope with the requirements of a change in investment and make
operations smoother. • Gap in Financial Literacy: The worst is the lack of even
basic financial knowledge in a huge majority of the potential investor base. This
removal is the simple presumption to have adequate decisions and ensure the
long term growth of the industry.

• Cyber Security Threats: With increased digitization in the industry, the concern
for cyber security also rises. Stringent security measures and creation of
awareness that could help in curtailing such scams likely to happen with the
investors are to be put in place.

Our Indian broking industry is a vibrant eco-system with an equally rich past and
a beautiful future. What follows is a speckled history of its evolution, its present,
and its interplay with investor sentiment. From Pits to Platforms.

This industry was earlier dominated by a few state-controlled brokerages

operating through physical trading floors. It was the new reforms in the economy
in the 1990s that ushered in private players and electronic platforms, and
cleansed regulations now saw a surge of investor participation. In the 2000s,
discount brokers further democratized access with low-cost online execution.

A HosteninG Ecosystem in the Present

The industry thrives today through a combination of new growth in the middle
classes, rising disposable incomes, and the constant need for the generation of
wealth. This surge gets further impetus from the following factors:

36 | P a g e
 • High Internet Penetration: Online channels make investing accessible to all.

• Financial Literacy Programmes: Government initiatives and general awareness

give a sense of empowerment to the prospective investors.

ESG( Enviromental, Social and Governance) and SDG (Sustainable

37 | P a g e
 Development Goals) Report of the company.
o Retention: BFS Group ensures a fair, safe, and transparent workplace
culture with clear policies and gender pay parity.

 Ethics, Compliance, and Grievance Redressal: The organization emphasizes

responsible business conduct, ESG initiatives, and stakeholder engagement.

 Statutory Reporting: Measures are in place to ensure statutory dues are

deducted and deposited by value chain partners.

 ESG Initiatives: The group focuses on environmental sustainability, waste

management, and renewable energy projects.

 Customer Education: Companies educate customers on financial products,

fraud prevention, and essential services through various communication
channels.

Conclusion:
The Indian stock broking industry itself will therefore soon throw out
tremendous growth prospects, setting established brokerages on a spree to
consolidate respective positions and help surmount challenges. The sensitivities
to streamlined investor sentiment and the use of data thus become the levers of
success at the forefront.

38 | P a g e
 Literature Review

The vast change in the Indian stock broking industry is at work. To say the least,
a few of these myriad factors are the growth of the middle class, lpenetration of
the Internet, and the democratization of financial information. These make
people rather more concerned about the wealth creation arena. Investor
sentiment has played an important role in critical investment decisions.

In this dynamic landscape, it becomes very important to understand the

sentiment of investors—feeling and opinion touching on investment decisions..

This literature review seeks to highlight some of the key research findings at the
intersection of investor sentiment and the Indian stock broking industry, pointing
out possible areas for further investigation.

Impact of Investor Sentiment in Investment Decisions:

Barberis et al. (1998) investigate the "disposition effect," where investors tend
to hold on to losing stocks and sell the winning stocks too early. This behavior,
driven by sentiment, could turn fatal in their investment decisions.

• Baker and Wurgler, 2006, show that investor sentiment Ezekiel, measured on
news media tone, is predictive of subsequent stock market returns. Specifically,
positive sentiment precedes an increase in return expectations, while negative
sentiment precedes a fall.

• Huang et al., 2015, study the impact of social media sentiment on the volatility
of the stock market. They find that negative social media sentiment might be due
to the cause of the amplified market fluctuation.

Investor Sentiment Analysis in the Indian Context :

• Agarwal et al. (2018) investigate how different news sentiment impacts

stock prices in the Indian market. Evidence is found that positive news sentiment
related to small and mid-cap companies will result in their respective stock
prices going up.

• Bhattacharya et al. (2020) study how investor sentiment is correlated to

their respective stock market volatility for India. Their findings showed that
including investors' sentiment varied with market volatility; this was particularly
the case when it came to economic uncertainty.

• Jegadehesh and Wu, 2014, examine the role that investor sentiment has to play
in sector allocation decisions for Indian mutual funds. The authors document that
funds tend to invest more in those sectors with positive sentiment.
39 | P a g e
 Bridging Gap between Sentiment and Action:

• Kumar, 2017: The paper discusses the various factors affecting the
participation of individual investors in India's stock market. He shows financial
literacy and risk tolerance play an important role in translating sentiment into
actual investment decisions.

• Majumdar, 2019: The sharing gap between investor sentiment and informed
investment choice is explored in the study with regards to how it gets bridged
through financial advisors. It finds the advisory role of advisors is very important
in guiding and handling the emotional biases of investors.

• Goyal and Sahoo, 2020: Study the impact of online trading platforms on
investor behavior in India. User-friendly platforms and educational resources can
empower investors to be the force behind informed decision-making with
sentiment analysis alongside other financial data.

Gaps and Future Research Directions:

While the previous discussion regarding existing studies is very informative,

there exist such open areas that would exhibit fruitful areas of future research:

• Social media sentiments: With its growing influences on investment decisions,

this aspect needs to be delved deeper.

• Sentiment analysis of regional languages: The study of investor sentiments

expressed through regional languages shall go a long way toward giving the
whole dimension of the Indian market.

• Effectiveness of behavioral interventions: Examine the effectiveness of

behavioral interventions, including nudges and financial literacy programs, in
translating positive sentiment into informed investment decisions.

40 | P a g e
 CHAPTER – 3

RESEARCH METHODOLOGY

41 | P a g e
 RESEARCH PROBLEM

It is in this background that the Indian stock broking industry is undergoing dynamic changes,
driven by a rapidly growing middle class with an increasing hunger for the creation of wealth.
However, beneath this glittering facade lies a "perfect storm" of challenges that is confronting
established players like Bajaj Broking. The project zeroed in on this complex environment with an
in-depth, comprehensive analysis of customer preferences versus brokerage offerings, new entrants
coming up and intensifying the competitive environment under the present scenario.

Customer Disconnect and Suboptimal Investment Decisions:

•_wrong Recommendations_: One of the important misalignments is between the preference of

customers for some investment sectors, such as real estate, technology, or infrastructure, and the
generic investment advice given by many brokerages. This exposes customers to investment in
sectors not aligned with their risk tolerance or financial objectives and thus ends up with
suboptimal investment outcomes.

• Lack of Knowledge and Guidance: Most new investors have no knowledge or credibility to make
reliable and-plus decisions. Without any type of guidance, they could be stuck investing in
unknown sectors or following doubtful sources, ultimately leading only to stunted success.

The Rise of New Players and Technological Disruption:

• Fintech Innovation: A wide array of new age fintech startups are entering the market with their
simple online trading platforms, lower fees, and a relationship which basically revolves around
technology-based solutions. These. innovative players are dramatically changing the traditional
brokerage landscape and consequently attracting the tech-savvy customer segment—wired for
frictionless digital experiences.

• The Legacy Challenge: Established players like Bajaj Broking may be seen as relatively late
entrants in the adoption of the newest technological innovations to meet changing customer needs,
which are increasingly becoming technology-dependent. This type of perception results in the loss
of market share to more agile competitors for bigger Molly customers.

A Highly Competitive Market and Shrinking Margins:

• Market Saturation and Differentiation: The Indian stock broking market is reaching saturation. It
is challenging for Bajaj Broking to set its brand differentiation from established market players,
who also have an impressive pan-India network of branches, and new-age fintech startups who
focus on creating innovation in features and delightful user experiences.

• Price War: With the high level of competition, brokerages slash their fee structures or
commission rates. This may affect Bajaj Broking's margins and hence investments in new
technologies and personalized services that are necessary if it has to remain competitive.

The Challenge: A Perfect Storm for Established Brokerages

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 A myriad of factors has come together to create a perfect storm for traditional brokerages like
Bajaj Broking. First, there is the changing landscape of customers, and secondly, there are new
players with their new and innovative ways of doing things. With competition in the dynamics of
the market, this becomes a "perfect storm."

Inactivity Consequences

• Reduced Market Share: Bajaj Broking will start losing market share to its more dynamic rivals if
it fails to stop its negation of acting and reacting to changes in customer taste and preference or
technology.

• Customer Churn: Clients who feel their investment needs and requirements are otherwise not
being suitably met will be much more likely to shift to other brokerages, creating a reduction, over
a period of time, in the number of customers and thereby loyalty to Bajaj Broking.

• Stagnant Growth: Inability to differentiated strategy and definite strategy for innovation will
make Bajaj Broking unable to match up with the industry growth and hence, difficulties in
expansion plans and long-term success are inevitable.

METHODOLOGY ADOPTED

This work is on the evaluation of stockbroking services by their customers. In this respect, a
specific design was chosen to guide this investigation and to ensure results that would be reliable.
Basically, a research design refers to the general plan and procedure used in a research. It
prescribes the most appropriate methods which can best suit the research question and guides the
whole study. An ideal design has minimal levels of bias, and its results are therefore credible.

This current research is couched in a descriptive research design. The type of approach guided by
the sole motive of describing the existing phenomenon or situation—the experience of customers
while operating with stockbroking services; this descriptive research involves the construction of
literature to make, examine, and come up with data presentation that gives an unequivocal idea
about the subject of study. By adopting this design, the research aims to shed light on the "why"
and "how" of customers' perceptions of the stockbroking service that will eventually enrich the
understanding of the domain. In this regard, descriptive designs are especially useful when the
research question is well-defined and the objectives are to shed light on the nature of the situation.

The study also adopts a mixed-methods approach, rooted in both qualitative and quantitative
research methods. This combined approach will, therefore, provide a better understanding of the
customer's perspective. One could include an interview or a focus group in qualitative research to
gain rich information about the customer's experience and motivation. Quantitative methods,
through properly designed surveys,gives statistically sound data pertaining to customer preferences
and satisfaction levels. This combined approach provides a nuanced and full view of customer
perception in the stockbroking industry. With the data

43 | P a g e
 Research Objective

To analyse the customer perspective towards investment options and buying preference
towards Bajaj Broking as an investment app.

The objectives of the study are:

• Explore the recent development process of stockbroking in India.
• To understand the reason for investment in the sector.
• To analyse the investment perception of individual towards investment options.
• To understand the perception of consumer towards investing in various investment by
getting the answers to questions regarding:

 Awareness level towards Bajaj broking products

 Family size
 Age group
 Income group
 Risk appetite
 Purpose of investment
 Preferred investment option

• Is the overall perception different for male and female towards investment options?
• Consumer perception towards Bajaj broking products

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 Sampling Design

Sample area: Pan India

Sample Size: 100

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 Data Collection and Sample

In this research, the data is mainly collected by primary methods. Also, secondary data is used for
analysis. The data which is used in this research is collected by using the structured questionnaires
provided to me by the company with addition of a few questions. I interviewed with the potential
investors from all age group and income group. Questions were multiple choice to know the
awareness and perception of consumer

Investment Expectations of Customers

 High Return
 Liquidity
 Tax Rebate
 Long- and short-term Investment
 Capital Gain
 Hedge against inflation
 Safety and security
 Wealth Maximisation (Reinvestment)
 Flexibility
 Passive Income
 Digitalization
 Transparency
 Nominee facility
 Expertise management
 Collateral
 Easy claiming
 Ownership transfer
 Less volatility
 Less penalty charges

46 | P a g e
 Data Analysis and Finding

Interpretation:
Majority of the people who gave response were in the age group of 21-30 as the purpose of the
study was to focus on people who are entering in their work life span or those who will start
investment and know their perception.

Interpretation:
Responses are from every income group because income is dominant factor for investment
decision.

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 Interpretation:
From all the respondent males were in more number than the females because of their
inclination towards investment. All the female respondents here are working individuals.

Family size

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 Out of the total respondent maximum people are aware of different means where they can
invest their money

Interpretation:
Majority of the respondent here said, they do invest. As majority of respondent belong to income
group of within 10 Lacs and are working people. However, there are many who said they do not
invest few of the reasons could be that they are either have money issues or they are not aware about
the investment options available to them.

Interpretation:
Most of the respondent invest their money in Fixed Deposit or recurring deposit around 27% of the
total sample size because it is the safest mode of saving.

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 Interpretation:
Most of the respondents get the information about financial instruments from advetisement which
influence their decision to in various sectors and make them aware about different sectors of
investment.

Interpretation:
Factors that influence respondents investment decisions are mainly for tax saving purpose under
section 10(10D) and 80C through which individuals can get tax rebate of upto Rs. 1,50,000. Next
factor being liquidity so that their money can easily be converted into cash at any moment.

50 | P a g e
 Interpretation:
The most important factor for people investing money is return because people invest
money so that it can grow and can contribute to their goal of wealth creation or child
education etc. After which the next factor is risk because people with different age
group and different occupational group.

Interpretation:
Majority if the respondents purchase insurance product to financially protect family for any
unforeseen incident. It shows individuals still don’t consider insurance as a source of investment
rather a scheme to protect family.

51 | P a g e
 Hypothesis Testing

To determine the awareness about investment options available in the market and gender.
Framing the hypothesis to understand whether males or females have better awareness for
investment options available in the market
H0: There is no significant relationship between Awareness about investment options of Bajaj
Broking available in the market and gender of the consumer.
H1: There is a significant relationship between Awareness about investment options of Bajaj
Broking available in the market and gender of the consumer.

Group Statistics
Gender N Mean Std. Deviation Std. Error Mean
Are you aware of all the Male 65 1.29 .458 .057
investment options available Female
35 1.37 .490 .083
in the market?

Independent Samples Test

Levene's Test
for Equality
of t-test for Equality of Means
Variances

95%
Confidence
Interval of the
Sig. Mean Std.
(2- Difference
F Sig. t d Differen Error
f tailed Lower Upper
) ce Differen
ce

Are you Equal

-
aware of all varianc 2.20 .14 98 .424 -.079 .098 -.275 .116
7 1 .804
the es
investment assumed
options of Equal
-
Bajaj variances 65.79 .434 -.079 .100 -.280 .122
.787 7
Broking not

available in assumed

the
market?

52 | P a g e
 The significant value here is 0.141 which is greater than P value (0.05) which means H0 will be
rejected and H1 will be accepted.
Hence, according to the analysis there is no significant relationship between awareness about
investment options available in the market and gender of the consumer

53 | P a g e
 Hypothesis Testing

To determine the relationship between percentage of income invested in various

investment options and income of investors.
Framing the hypothesis to understand whether income has an impact on investment.

H0: There is no significant relationship between percentage of income invested in

various investment options and income of investors.
H1: There is a significant relationship between percentage of income invested in
various investment options and income of investors.

Determine appropriate Statistical Test

 Independent Variable: Income and it is also known as Categorical of Qualitative

Variable
 Dependent Variable: Percentage of income individual invest, and it is also known
as Quantitative or Testing Variable
 The above information indicates that it is a more than two sample mean test.
 We will do Analysis of Variance Test (ANOVA Test)

Set the Level of Confidence & Significance

There is nothing mentioned in the dataset so, we will take Level of Significance (Alpha)
as 0.05 and Level of Confidence (C) as 0.95

Decision Rule

If P value is less than or equal to alpha (0.05) we will accept Alternate Hypothesis (HA)
or else, we will choose Null Hypothesis (H0).

Sum of d Mean Square F Sig.

Squares f

Between Groups 2.343 4 .586 .67 .61

Within Groups 82.407 95 .867 5 1

Total 84.750 99

ANOVA
What percentage of income do you invest?

54 | P a g e
 What percentage of income do you invest?
Duncana,b

Subset for alpha

= 0.05

Annual Income N 1

7,50,001-10,00,000 27 1.93
Upto 5,00,000 26 2.19
5,00,001-7,50,000 15 2.20
10,00,001-12,50,000 20 2.20
12,50,001-15,00,000 12 2.42
Sig. .163

Analysis of Data

Degree of Freedom (df)

 Between the Groups = No. of Groups – 1 = 4
 Within the Groups = Sample Size – No. of Groups = 95

As mean square between the groups is less than the mean square within the groups, so there is
no significant difference.
From the Duncan Table we can observe that all the income level group lie in group

1. As P value 0.611 is less than alpha (0.05) we will accept Null Hypothesis (H0

Key Findings

 Most people are hesitant in investing in investing in high-risk investment sectors.

 Most people prefer Fixed deposit as an investment option as it is safer and there is no
capital loss.
 Return and risk are most important factor in determining the investment option.
 Majority of people are not aware of different type of investment schemes
available for investments.
 Most of the people invest their money with the main objective of wealth creation and
asset purchase.
 Gender and income of the people influence investment decisions.

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 Chapter – 4

DATA DESCRIPTION AND ANALYSIS

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 The broking industry in India has also experienced dynamic changes, powered
by a swelling middle class combined with a growing hunger for the creation of
wealth. At the same time, the established players in the broking industry, like
Bajaj Broking, are caught in a highly complicated landscape of transforming
client preference, new fierce competition from entrance rivals, and fast-changing
technological environments. It is, therefore, a SWOT analysis that will be
thrown light on the strategic scenario that Bajaj Broking finds itself in, bringing
into focus its different strengths, weaknesses, opportunities, and threats, of
which it needs to be aware if decisions are to be made effectively for long-term
success.

Strengths:

Brand legacy and trust are with Bajaj Broking—well-built brand, years of
experience, and an absolutely customer-oriented approach. This century-old trust
is a huge positive in the onboarding of new clients and the retention of old ones.

• Extensive Branch Network: Bajaj Broking possesses a decent number of

branches that are spread out physically across the pan-Indian landscape.
Particularly, this offline branch setup will cater to those potential investors who
believe in personal service due to visiting an investment advisor.

• Regulatory Compliance – Being one of the most trusted brokerage houses,

Bajaj Broking manages to provide some serious concerns regarding minimal
compliances with regulations. Thereby, this move helps protect the customers'
interest and brand trust.

• Investment Acumen – At Bajaj Broking, in the face of experienced financial

advisors and investment professionals, there is associated acumen that helps in
offering valuable advice and customized investment recommendations for all of
their clients.

Weaknesses:

• Innovation in Technology: Compared to the ever-agile and responsive fintech

startups, Bajaj Broking might, at best, be at par or even slow in adopting
innovations in technology. This can hence make both an online trading platform
and user experience unattractive to tech-savvy investors.

• General investment advice: Such focus may not be able to digest the diversity
of customers in terms of their investment preference and variant risk appetite

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 systems, hence leading to customers' dissatisfaction and loss of potential tailor-
made investment opportunities.

• Operational Cost Structure: Putting in place an extensive branch network could

well be cost-gastronomic compared to lean brokerages, which maintain more
online services and therefore exert extreme pressure on Bajaj Broking's margins
and investments in new technologies or marketing campaigns.

• Start-up Fintech Competition: State-of-the-art fintech start-ups in financial

services, with user-friendly online platforms and proactive means of
communication with data-driven insights and at very low cost, bring with them a
great deal of competition for Bajaj Broking's market share.

Digitisation: Bajaj Broking may use its brand and existing customer base to
finance development of a state-of-the-art Internet trading platform with an
intuitive interface and a set of features that would be appealing with the needs of
the new-age investor.

• Data-Driven Customization: This would take Bajaj Broking to customer-driven

solutions backed by big data analytics and artificial intelligence on personalized
investment recommendations and services based on individual customer profiles
and risk tolerances. It would be incomplete without customization around service
at the juncture of customer profiling of risks and investment advice, and such
realignment might bring a radical improvement in satisfaction from customers
while driving much sharper investment outcomes.

• Customer Segmentation: This grouping would assist Bajaj Broking to have a

much more focused marketing and investment strategy for customer
segmentation relative to those which are seeking their goals, risk tolerance, and
usage preference from online vs. branch-based services.

• Product Portfolio Expansion: Bajaj Broking can think of expanding the Product
Portfolio from the given Equities and other investment products like Mutual
funds, Derivatives, and Wealth Management Services to cater to all kinds of
customer requirements.

Responding to Competitive Pressures:

• Pricing Strategies: Operationalize lower brokerage structures for professional

and privilege packs to attract high-volume traders.

• Leverage Options: These would be incrementally raised by the leverage of an

MTF to unsustainable levels, which would be carried in professional and
privilege packs. With due compliance to all the regulatory requirements and
conforming to the risk profiling, Bajaj Broking will thereby be able to help out
the experienced investors looking to amplify returns.

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 • Increased competition: Already the Indian stockbroking market was fully
saturated with established players, and the entry of fintech startups proved to
create a fresh challenge. This highly competitive scenario may lead to price wars
and put pressure on margins.

• Changes in Regulatory Landscapes: The inability to cope with or fight some

changes in the regulatory landscape of the Indian stock broking industry may
prove a concern for Bajaj Broking since any undesired change wil also warrant
change in the business model and operations in due course.

• Cyber Security Threats - It is a very digitalized industry; the associated cyber

security threats are high. Data breaches or security-weakness exposure could
result in loss of customer trust, resulting in reputation damage.

• Changes in investment preference toward sectors, classes of assets, and online

trading sites drive continuous reinvention for relevance as the ecosystem moves
fast.

Summary Conclusions
One of the large Indian stock brokerage firms, Bajaj Broking, is currently
passing through a very critical juncture. Tons of cookie-cutter investment advice
being doled out to customers by practitioners, a host of disruptive FinTech start-
ups who have made their foray into this space, and increasing competition have
combined to metamorphose the Indian stock broking landscape. In view of this,
considering the internal strengths and weaknesses of Bajaj Broking, this case
analysis shall try to look more closely at the external environment through the
PESTEL framework in deriving some of the strategic recommendations that
would build on inherent advantages. Key Issues: Customer Disconnect:
Providing a one-size-fits-all investment recommendation is most likely to result
in customer dissatisfaction as this may not align with the risk tolerance and
preferences of the customer.

• Digital Disruption: Seamless user experience combined with the reduced fees
brought in by the Fintech start-ups is a relevant threat to the market share of
Bajaj Broking.

• Rising Competition: Intense fight for market share by established players and
agile new entrants squeezes brokerage margins.

• Political Environment: A change in regulations or any leading initiative that the

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 government brings can either alter operational costs and hence the business
strategy as a whole.

• Economic Fluctuations: It is the changes in economic conditions which

influence investor sentiment and thereby, in turn their demand for the investment
products.

• Evolving Social Scene: A change in the social scenario characterized by an

increase in financial literacy and tech-savviness of people has raised demands for
duly tailored online platforms.

• Technological Advances: Strategic use of data analytics to provide a seamless

experience to the user by investing in leading-edge technology further.

• Reaction to Environment Considerations: ESG investing is the upcoming

demand, and strategic adjustment to the investment products is required.

• Legal Framework: Compliance to regulations and data protection Acts very

essential.

Strategic Recommendation:

1. Build on the Strengths: Bajaj Broking can leverage on the strong brand that
has been built, extensive branch network and already competitive, professional
and privilege packages which provide for cost-effective equity delivery.

2. Tailor-made Investment Solution: Data-driven and AI-powered investment

strategies available for funding of a single customer-risk profile linked to an
investment objective.

3. Technology Innovation: Continue to enhance its ease of use online platform to

stay at the leading edge of innovation in the use of technology by investors.

4. More Aggressive Professional/Privilege Packs: Re-engineer professional and

privilege packs to the more aggressive brokerage structure for equity delivery, in
a bid to help lure high-volume traders and remain competitive against discount
brokers.

5. SMART Leveraging Options: Avail the option of coming out with one of the
most attractive MTF interest rates offered within these packs, subject to
compliance with regulatory requirements at all levels and proper risk profiling,
suited to advanced investors aiming to multiply their returns.

6. Customer Segmentation: Formulate focused marketing and investment

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 strategies for various liberally identified customer segments based on investment
goals, risk tolerance, and channel choice.

7. Possible Collaborations with Fintechs: Strategic cooperation with agile fintech

start-ups in a way secures benefits from their light-footedness and innovative
product new-to-markets.

8. ESG Content: Anchoring ESG factors within a process of investment advice

and product development serves growing demands related to sustainable
investments.

9. PESTEL Continuous Monitoring: Staying informed about regulatory changes,

economic trends, socio and technological landscapes shifting business practice.

Conclusion:

It can create a deserving space within the Indian stock broking industry due to
the inherent strengths, strategic refinement in the service bouquet, and customer-
driven innovation. Of equal importance will be the need to shout louder about
competitive professional and privilege packs, which already exist at even lower
prices, and probably the most attractive interest rates under the MTF, in order to
win new customers and retain old ones in the face of mounting competition. The
ability and continuous adjustment to deliver a better user experience places Bajaj
Broking for long-term success.

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