A
MAJOR LAB REPORT ON
FINANCE
Submitted in partial fulfilment for the award of degree of
Masters of Business Administration
Submitted By: Submitted To:
Priyansh Khandelwal Dr. Sandeep Vyas
MBA (Semester-3) MBA/2023/4757
Batch (2023-2025)
International School of Informatics and Management
*Flow of
presentation
• Questions
• Hands on practice on software
• Book review
*QUESTIONS
1. Examine and prepare a report on the constituents of Capital
Account. Analyze the trend of FDI and FPI inflows In the Capital
Account during the study period and Indicate their impact on the
Indian Economy and volatility
In the Indian Financial Market
Answer:
It comprises all the transactions, which has a direct or indirect
impact on the assets and liabilities of the country or government
with regard to the outside world. Under this, transactions like loans
and investments are recorded among a country and the outside
world. Thus, it can be concluded that capital accounts cause
potential claims. Sometimes, there is confusion regarding whether
the export and import of capital goods are to be included in the
Capital account or not. But the answer to this question is ‘No’. It is
so because the export and import of goods (whether capital or
consumer) are included in the current account. Thus, it is irrelevant
in the case of the capital account. In simple terms, a capital account
includes those transactions, which cause a change in the assets or
liabilities of a country’s residents or its government.
*Components of Capital
• Borrowings and Lendings to and from abroad Account
The capital account consists of all the transactions related to
borrowings from abroad by the government, private sector, etc.
The receipts and repayments of such loans are recorded on the
credit side of the BoP. Similarly, all the transactions related to
‘lending to abroad’ by the government and private sector are
included in the capital account. These transactions are recorded on
the debit side of the BoP.
• Investments to and from abroad
The second component of the Capital Account consists of all the
investments by the rest of the world in shares of Indian companies,
real estate, etc. These transactions from the rest of the world are
recorded on the credit side of BoP, as these transactions bring
foreign exchange to the country. Besides, it also includes all the
investments made by Indian residents in shares of foreign
companies, real estate abroad, etc. These transactions are
recorded on the debit side of the BoP, as they result in the outflow
of foreign exchange.
Every country requires capital for economic growth, and the funds
cannot be raised from domestic sources alone.
Foreign Portfolio Investment (FPI) and Foreign Direct Investment (FDI)
are the two essential and well-sought types of foreign capital by
countries, especially by the developing world. Most of you surely
would have heard the words “FPIs” used in the context of the stock
market crash through financial news channels or social media
platforms.While most people know that FPI and FDI pertain to foreign
investment, fewer realize they differ.This blog is to look at the two
terms individually to understand them better and then go on to
understand the differences which make them unique and distinctive.
Foreign Direct Investment (FDI)
FDI pertains to foreign investment in which the investor obtains a
lasting interest in an enterprise in another country.
It involves establishing a direct business interest in a foreign country,
such as buying or establishing a manufacturing business, building
warehouses, or buying buildings. Also, it involves creating more of a
substantial, long-term interest in the economy of a foreign country.
Examples :-
Some of the significant FDI announcements in India are as follows:
In May 2018, Walmart acquired a 77% stake in India’s biggest online
retailer, Flipkart is an FDI investment.
In October 2018, VMware, a leading software innovating enterprise in
the US, announced an investment of in India by 2023.
In June 2018, an appeal from Idea for 100% FDI was approved by the
Department of Telecommunication (DoT), followed by its Indian merger
with Vodafone making Vodafone Idea the largest telecom operator in
India.
From April to June 2022, India’s Computer Software & Hardware
industry received $3,427 million in FDI.
In May 2022, India attracted FDI investments in the defence
manufacturing industry worth Rs. 494 crores (US$ 61.91 million).
Latest FDI Trends In India
The Modi Government’s favourable investment policy regime and
robust business environment have ensured foreign capital flows
into the country.
The Government of India (GOI) has taken many initiatives in recent
years, such as relaxing FDI norms across sectors such as the
defence sector and PSU, especially in the oil refineries sector,
telecom sector, power exchanges, and stock exchanges, among
others.
According to UNCTAD’s World Investment Report 2022, India will be
the seventh largest beneficiary of FDI among the top 20 host
countries in 2023. In FY22, India attracted the highest-ever FDI
inflows of US$ 84.8 billion, including FDI equity inflows of US$ 7.1
billion in the services sector.
Latest FPI Trends in India
With a few exceptions, foreign portfolio investors (FPIs) have
been selling equities in Indian markets for over a year,
beginning in October 2021.
Tighter monetary policy in advanced nations, increased
demand for dollar-denominated commodities, and the
strength of the US dollar has resulted in a persistent outflow
of funds from Indian markets
In times of significant market uncertainty, investors often
prefer stable markets.
According to data from the NSDL website, foreign portfolio
investors sold Rs 121,439 crore of equities in
India in 2022. Meanwhile, their demand for debt instruments
has improved slightly.
The most recent NSDL statistics show that FPIs bought debt
assets worth Rs 9,033 crore.In the 2023-24 fiscal year, India
witnessed a relatively stable trend in FDI inflows, with a
slight increase compared to the previous year, while FPI
inflows exhibited some volatility due to global economic
2. Study and prepare report on marketing strategies
adopted by any three broking firms .
Answer:
Marketing Strategies of Broking Firms:
A Study on Three Major Firms
The broking industry, which involves the buying and selling of
financial securities, is highly competitive, with firms continuously
seeking innovative ways to attract clients and enhance their market
position. Broking firms rely heavily on effective marketing strategies
to build brand recognition, gain customer loyalty, and drive business
growth.
This report examines the marketing strategies adopted by three
leading broking firms in India: Zerodha, Angel One, and Upstox.
These firms have revolutionized the broking landscape with their
marketing approaches, particularly focusing on digital strategies,
customer-centric offerings, and innovative advertising.
*1. Zerodha:
Pioneering a
Digital-First
Strategy
Zerodha is one of India's largest and most
successful retail broking firms, known for
disrupting the traditional brokerage model.
Founded in 2010 by Nithin Kamath, Zerodha
adopted a technology-driven approach to trading,
aiming to reduce brokerage fees while providing
seamless and efficient trading platforms.
*Marketing
Strategies:
• Cost Leadership & Transparency: Zerodha has focused on
eliminating the traditional commission-based brokerage model
by offering a flat fee structure, which was revolutionary at the
time of its inception .
• Digital Marketing & Content Creation: Zerodha’s marketing
strategy is heavily focused on digital platforms. The company
uses content-driven marketing as a key tool to educate
investors, which includes webinars, tutorials, blogs, and social
media campaigns.
• Referral Programs: Zerodha leveraged the power of word-of-
mouth marketing by launching referral programs. This initiative
incentivized existing customers to refer new clients, significantly
increasing its customer base. By offering a simple and effective
referral system, Zerodha created a loyal customer network that
contributed to its rapid growth.
Customer-Centric Focus: The firm has developed an intuitive
trading platform, "Kite," which focuses on usability and technical
robustness. Zerodha’s emphasis on simplifying the user experience
ensures that even beginner investors can trade without much prior
knowledge.
Partnerships & Brand Collaborations: Zerodha also partners with
fintech companies to offer complementary services, such as mutual
fund investments and tax filing services. These collaborations add
value to customers and improve the firm's reputation in the
market.
*2. Angel One: Leveraging
Technology and
Personalization
Angel One (formerly Angel Broking) is another
prominent player in the Indian broking industry,
offering a wide range of financial services
including retail broking, investment advisory,
and wealth management. Angel One’s
rebranding and focus on technology and
customer-centric marketing strategies have
made it one of the fastest-growing firms in
India.
*Marketing
Strategies :
• Brand Rebranding & Emotional Appeal: Angel One’s rebranding
from Angel Broking to Angel One in 2020 reflected a strategic shift
towards modernity, technology, and a more customer-centric
approach.
• Digital Presence & Social Media Campaigns: Angel One's
digital marketing is built around engaging content and educational
resources for potential investors. It runs paid campaigns on
Facebook, Instagram, YouTube, and other platforms, aiming to
create awareness about stock market trading.
• Smart Investor App: Angel One focuses on the development of its
proprietary app, “Angel One,” which is designed to provide an
intuitive and personalized trading experience.
• Partnering with Fintech Startups: To strengthen its brand and
expand its product offerings, Angel One has partnered with fintech
startups and other financial institutions.
*3. Upstox:
Innovation &
Market Expansion
Upstox, founded by Ravi Kumar,
Shrini Viswanath, and Radhika Gupta,
is a technology-driven discount
broking firm in India. With a focus on
simplifying the trading process and
offering low-cost solutions, Upstox
has established itself as a strong
competitor to traditional brokerage
firms.
*Marketing
Strategies:
• Discount Brokerage Model: Similar to Zerodha, Upstox
adopted a discount brokerage model, offering low-cost trading
services. By reducing brokerage fees, Upstox attracts cost-
conscious investors and traders.
• Partnerships with Fintech & Digital Marketing: Upstox has
formed strategic partnerships with financial technology
companies and influencers in the finance space. These
collaborations help increase the brand’s visibility and attract new
clients.
• Social media and Content Strategy: Like its competitors,
Upstox has adopted an aggressive social media strategy, with a
strong focus on educating users. The company regularly shares
educational videos, stock market tips, and trading tutorials across
platforms like Instagram, Facebook, and Twitter.
*CONCLUSION
The marketing strategies adopted by Zerodha, Angel One, and
Upstox reflect a strong emphasis on digital engagement, cost
efficiency, customer education, and personalized offerings.
By focusing on these key areas, these firms have disrupted
the broking industry and positioned themselves as leaders in
the discount broking space. Zerodha’s digital-first and
educational approach, Angel One’s customer-centric
strategies, and Upstox’s focus on mobile-first solutions have
enabled them to attract and retain a growing base of
investors, particularly among the younger generation.
These firms have demonstrated that innovative marketing
strategies—particularly those that prioritize customer needs
and leverage technology—are critical to thriving in the
competitive world of broking. Their success is a testament to
the importance of adapting to changing consumer behaviour
and the role that technology plays in modern marketing.
*BOOK REVIEW
“THE PSYCHOLOGY OF
MONEY”
Author – Morgan Housel
Introduction
The Psychology of Money by Morgan Housel, first published in
2020, is a collection of insightful essays that explore the
emotional and psychological aspects of money management. The
book blends personal finance wisdom with behavioral economics,
offering a unique perspective on how people interact with money
and the financial decisions they make. Unlike typical finance
books that focus heavily on technicalities or investment
strategies, Housel’s book delves into the human side of finance,
emphasizing the irrational behaviors, biases, and emotions that
shape our financial choices. This review aims to analyze the core
themes of the book, its approach to personal finance, and how it
resonates with readers seeking financial success and happiness.
Here are some key takeaways from the book:
• Luck and Risk:
One of the central themes in The Psychology of Money is the role of
luck and risk in financial outcomes. Housel discusses how many
people fail to recognize the significant impact of luck on success.
• The Power of Compounding:
Another crucial theme in the book is the power of compounding, not
just in terms of money but also in life. Housel illustrates how small,
consistent actions can lead to massive results over time.
• Wealth vs. Richness:
In a culture that often conflates being “rich” with being financially
successful, Housel draws a distinction between wealth and richness.
He notes that many people tend to focus on outward displays of
affluence, such as luxury cars and expensive houses, which
represent “richness.”
• Saving as a Strategy
A significant part of the book is dedicated to the concept of saving
money as an investment strategy. Housel emphasizes that saving
is more important than high returns or risk-taking. People who are
able to save consistently, even in small amounts, have a higher
chance of becoming wealthy in the long run. The discipline of
saving is, therefore, one of the most important practices anyone
can adopt, regardless of income level.
• The Importance of Time Horizon:
In investing, the time horizon is key to decision-making. Housel
argues that most investors fail to recognize the importance of time
in financial decision-making. He illustrates this with the example of
the stock market: short-term volatility might lead to panic selling,
but those who have a long-term perspective are better positioned
to weather market fluctuations.
• The Role of Emotion in Financial Decisions:
One of the more compelling aspects of Housel’s book is his deep
dive into the emotional side of money. Humans are emotional
beings, and their financial decisions are often driven by fear,
greed, and the desire for validation.
*
HANDS ON PRACTICE ON
SOFTWARE :MONEY BHAI
Who is Money Bhai?
Money Bhai is an online persona who has rapidly gained recognition
in India and other parts of the world for providing financial education
in a manner that is easily accessible and understandable for people
from all walks of life. Money Bhai is primarily active on platforms
such as YouTube, Instagram, and Twitter, where he engages his
audience with practical financial tips, stock market advice,
investment strategies, and motivational content related to money.
His content focuses on simplifying financial concepts, such as how to
save money, build an investment portfolio, and navigate the often-
overwhelming world of finance. While there are several influencers
in the personal finance space, Money Bhai stands out because of his
approachability, relatable communication style, and a knack for
breaking down complex topics.
CONCLUSION
Money Bhai has emerged as a trusted voice in the world of
personal finance, offering guidance that is practical,
straightforward, and grounded in real-world experience. His
content is an invaluable resource for anyone looking to improve
their financial literacy, whether they are beginning their journey
in personal finance or are looking to refine their investment
strategies. By focusing on the psychological and practical aspects
of money, Money Bhai helps his audience navigate the
complexities of financial decision-making and work toward long-
term wealth-building goals.
In a world where financial literacy is essential yet often
overlooked, Money Bhai’s approach is refreshing, relatable, and
empowering. His influence in the personal finance space is
undeniable, and his ability to simplify complex topics ensures
that more people can start on the path to financial independence
and prosperity.
