Functional Lab Report

Major Lab 1

“Finance”
Submitted In Partial Fulfillment for The Award of
Degree
Master of Business Administration

Submitted By: - Submitted To: -

Yash Agarwal Dr. Sandeep Vyas
MBA/2021/4447 Associate Professor
Semester-III

INTERNATIONAL SCHOOL OF INFORMATICS AND MANAGEMENT, JAIPUR

RTU Batch “2021-2023”
Table of Content

S.No Topic Page No.

1 Questions 3-8

2 Hands on practice on software 9-12

3 Book Review 13-15

4 Bibliography 16
QUESTIONS
Question1: Study and document India's Current Account (BOP) transactions for last
five years. Examine and comment on the constituents of Current Account transactions
that affect BOP surplus/deficit for the said study period. Also suggest remedies for
BOP deficit, if any.
Answer:
Balance of Payment: The balance of payments of a country is a systematic record of all
economic transactions between the residents of a country and the rest of the world. It
presents a classified record of all receipts on account of goods exported, services
rendered and capital received by residents and payments made by them on account of
goods imported and services received from the capital transferred to non-residents or
foreigners.

Current Account Balance:

 
•BOP on current account is a statement of actual receipts and payments in short period.
•It includes the value of export and imports of both visible and invisible goods. There can be
either surplus or deficit in current account.
• The current account includes:- export & import of services, interests, profits, dividends and
unilateral receipts/payments from/to abroad.
•BOP on current account refers to the inclusion of three balances of namely – Merchandise
balance, Services balance and Unilateral Transfer balance
INDIA'S BALANCE OF PAYMENT:
A country, like India, which is on the path of development generally, experiences a deficit balance of
payments situation.
This is because such a country requires imported machines, technology and capital equipment's in
order to successfully launch and carry out the programme of industrialization.
India's Current Account (BOP) transactions for the last five years are as follows:
•2015-2016: Current Account deficit of $22.1 billion (1.1% of GDP)
•2016-2017: Current Account deficit of $22.2 billion (1.1% of GDP)
•2017-2018: Current Account deficit of $15.8 billion (0.7% of GDP)
•2018-2019: Current Account deficit of $15.3 billion (0.6% of GDP)
•2019-2020: Current Account deficit of $48.7 billion (2.1% of GDP)

Remedies for BOP deficit:

•Increasing exports: India can focus on increasing exports of goods and services by promoting and
supporting domestic industries and increasing access to foreign markets.
•Reducing imports: India can work on reducing its dependence on imported goods, particularly oil and
gold, by increasing domestic production and promoting energy efficiency.
•Managing capital flows: India can work on managing capital flows by encouraging foreign investment
in sectors that can contribute to the country's growth and development.
•Improving the balance of payments: India can improve its balance of payments by implementing
policies that promote savings and investment, and by encouraging the use of domestic currency for
international transactions.
.
 Question2: Study and prepare report on marketing strategies adopted by any
three broking firms of India for selling financial products and services.
Answer:

1. ICICI Direct:
About: ICICI Direct is one of the leading broking firms in India and has adopted a multi-channel marketing
strategy to reach its customers. The firm uses a combination of digital and offline marketing methods to
promote its products and services.
 
• Digital Marketing: ICICI Direct has a strong online presence, with a user-friendly website and mobile app
that allows customers to access their accounts, trade, and track their investments. The firm also uses social
media platforms like Facebook, Twitter, and LinkedIn to reach its customers and provide them with relevant
financial information.
 
• Offline Marketing: ICICI Direct also uses offline marketing methods like print and television
advertisements to reach its customers. The firm regularly runs ads in leading newspapers and business
magazines, and also sponsors financial shows on television to create brand awareness.
 
Conclusion –
 
ICICI Direct has adopted a multi-channel marketing strategy to reach their customers. The firm use a
combination of digital and offline marketing methods to promote their products and services and create
brand awareness.
2) Motilal Oswal:
About: An Indian financial services company named Motilal Oswal Financial Services Limited is
offering a range of financial products and services including broking, mutual funds, wealth management
etc. The house was founded in 1987 and it slowly entered into investment banking in 2005 and private
equity fund in 2006. 

•Segmentation, Targeting and Positioning- 

Marketing professionals at Motilal Oswal use market segmentation to separate a huge market into smaller
segments based on specific demands, traits, or customer behavior. Usage, user status, income, lifestyle, value
proposition priorities, advantages sought, loyalty status, gender, social class, self-perception, psychographic
variables, and other attitudes are all parameters that Motilal Oswal might use to categories customers.

•Ecommerce Strategies:
In talking about the e-commerce strategies Motilal Oswal financial services have its website from where they sell
their various services with special offers. Besides that, it has more than 10 apps available on the play store to
assist the public in the different financial fields

Conclusion –
We noticed in the marketing strategy of Motilal Oswal Financial Services that it is gaining momentum and public
support by utilising numerous marketing methods. Its recurrent efforts help to raise public awareness of its
presence and services.
Furthermore, the available apps make it a more powerful corporation in contrast to its competitors. Overall, the
financial services provider is on the right track, and ongoing improvement, innovation, and competitiveness will
lead to competition for its ultimate goals.
3) FinTech:
About: FinTech (financial technology) is a catch-all term referring to software, mobile applications, and other
technologies created to improve and automate traditional forms of finance for businesses and consumers alike.

•Use social media:

More than 4.5 billion people actively use social media. That means 9 in 10 internet users use social media. 
You can use social media to reach out to a wider set of audience. 
However, if you have tried social media marketing, you’ll know it’s not that easy.
It may be because the content is not compelling enough. Therefore, you must take a strategic approach to drive
engagement on your social channels. For this,

•Personalize communication.
Most traditional banks and their policies do not reflect the needs of millennials or Gen Z. While they may want
to offer better products/services, rigid policies and regulatory requirements often do not allow them to do so.
But fintech has leverage here.
They can use technology and data to understand their customers better and personalize their offerings. 

Conclusion-
The average number of sessions on investment apps and payments apps continues to grow.
It’s the same for banking apps, too.
So, what can we conclude from this?
Easy it’s that Fintech growth isn’t slowing down. However, when we look at usage by app type, nearly 52%
used only payments apps, 38% used payments and banking apps, and only 10% used only banking apps.
HANDS ON PRACTICE ON
SOFTWARE
Investar

• Investar is an integrated Indian Stock Market Software for doing

Fundamental Analysis, Technical Analysis and Portfolio Management
for the Indian Market (NSE, BSE, NSE F&O, MCX and NCDEX).
Investar has a unique user interface integrating Technicals and
Fundamentals for investors. The Portfolio and Charts integration really
enables sound money management principles The wide range of
technical analysis tools and indicators match any other software in the
market. End-Of-Day data is supported for all above exchanges and in
addition, for NSE and NSE F&O, you have the flexibility of both 5-min
and 1-min intraday data so that you only pay for what you need.
• Investar India software offers technical analysis, fundamental analysis,
portfolio management and screening features of Indian stock market
Technical Analysis Software for Indian Stock Market:
• Investar Technical Analysis Software has unique features that are not found in any other software that we
know of. These are our proprietary Auto-Support/Resistance and Auto-Supply/Demand Zones feature
(powered by AI). Support, Resistance and Supply/Demand Zones. 

Fundamental Analysis Software for Indian Stocks:

• Identify the best stocks to invest using Fundamental Analysis on companies listed
on BSE and NSE prepares a watchlist of stocks with great Fundamentals. Quickly Create a Watchlist from
a list of Fundamental Scans (e.g. High-Dividend Yield, High EPS Growth%, High Sales Growth% etc).

Intraday Technical Stock Screener for NSE Stocks and Futures:

• Investar has an in-built Intraday Screener for NSE Stocks and Futures. The Intraday Screener updates
scans automatically in Intraday, Daily, Weekly and Monthly timeframes without any need to refresh data.
Portfolio Management Software for Indian Stock Market (BSE, NSE, NSE F&O,
MCX, NCDEX):
• Investar as a Portfolio Management Software has the features that suit your needs based on your
experience level, whether you are an Entry-Level Investor who is learning to grow your Portfolio, a
Professional Trader who has been investing for years in the Indian Stocks, Futures and Options, an Entry-
Level Portfolio Manager, or a seasoned Professional Portfolio Manager managing multiple Portfolios for
your clients. See all Portfolio Management Software Features in more detail
Pros:
Investar India stock trading software provides end of day version for future and options, NSE
stocks and MCX, Intraday/Short Term/Long Term/F&O capital gains and NCDEX commodity
futures. Apart from this, it also has many benefits to offer for its users, some of which are its user-
friendly mobile and desktop trading platform, low trading fees. 
It also offers a lot of research tools like smart search, smooth uploading of charts and enough
backfill data. It has an easy user interface for investors. These tools provide an easy insight to
traders who are new to the market with a tiger eye view of the market trends. 
There are many expert advisors that the platform offers that aids budding investors in decision
making. One can also save time by using Integrated Technical & Fundamentals with online
tutorials and webinars on trading techniques, futures and options basics and the basics of
currencies.

Cons:
There are some back draws though. Customer support is poor and they are not providing any
backtesting feature to users for testing strategies. Also, as compared to other software available in
the market, it is a little expensive. Many users suggest them to improve and add some more addons
for the mobile app.
BOOK REVIEW
Intelligent Investor
- By Benjamin Graham
 
The Three Main Concepts:
• Investing vs. Speculating :Value investing is deriving the intrinsic value of
a common stock independent of its market price. Analyzing a company's
assets, earnings, and dividend payouts can help identify the intrinsic value
of a stock, which can then be compared to its market price
• The margin of Safety:Graham also advocated for an investing approach
that provides a margin of safety—or room for human error—for the
investor. There are a couple of ways to accomplish this, but buying
undervalued or out-of-favor stocks is the most important. The irrationality
of investors, the inability to predict the future, and the fluctuations of the
stock market can provide a margin of safety for investors.
• Mr. Market – The Pathetic Emotional Fool:Graham's favorite allegory
was that of Mr. Market. This imaginary person, "Mr. Market," turns up
every day at the stockholder's office offering to buy or sell his shares at a
different price. Sometimes the proposed prices make sense, but other times,
the proposed prices are off the mark, given current economic realities.
BIBLIOGRAPHY-

• https://rlacollege.edu.in/pdf/Eco_Presentations/Principlesofma
croeconomics/Balance-of-Payment.pdf
• https://iide.co/case-studies/marketing-strategy-of-motilal-oswal
-financial-services/
• https://ninjapromo.io/fintech-marketing-strategies
• https://www.icicidirect.com/mailimages/IDirect_MarketStrateg
y_2022.pdf
• https://investarindia.com/stock-market-software
• https://www.bookishelf.com/book-review-the-intelligent-invest
or-by-benjamin-graham/