Management Objective: The information that the
management requires
that helps in making decision more precise and more relatable. In almost every
decision of the company depends upon the research or the past result. Research
is a prime to make managerial decisions.
Management Decision Problem: A Management Decision Problem is
whereby when a situation arises, and management of a company needs to make
a decision which requires research and hence starts the research process.
Research Problem Statement: The statement of the problem is a focal
point of any research and a bridge between the literature review and the
research methodology. Problem statement often has three elements;
the problem itself, the method of solving the problem and the purpose.
Research Objective: Research objectives describe concisely what
the research is trying to achieve. They summarize the accomplishments a
researcher wishes to achieve through the project and provides direction to
the study. In accordance with brokerage apps, they do proper search on market
conditions on the shares of every company according to which they let their
investors know which to invest in and which not to. They also do researches on
their investors as what he/she is looking the market. Brokerage firms do
researches on market on different parameters like daily, weekly, monthly,
yearly, etc. type of searches for their customers so that they get a better
understanding of the market and market situations and also if someone is new in
market.
Impact of Covid-19 on brokerage Apps:
Online brokerage houses such as Zerodha, Upstox and 5paisa.com have seen a
spurt in the addition of investors and trading activities during the March-June
period amid coronavirus pandemic.
Sharekhan by BNP Paribas also witnessed a growth in on boarding of new
clients and trading activities. Interestingly, a substantial number of these new
investors are from smaller towns and the average age of such investors is
between 25 years and 30 years, according to brokerages. New client acquisition
in May and June 2020 was up by 54 per cent, Sharekhan by BNP Paribas said.
Of the accounts opened in May and June, almost 95 per cent of customers were
new to market with no prior capital market experience. "We have seen quite a
number dormant (inactive) customers return to ... this has been even more
pronounced during this lockdown period. Since March we have seen almost
20,000 customers return to trade/invest with Sharekhan which is a healthy sign,"
the company said.
Zerodha said it has seen remarkable growth, when it comes to opening of new
accounts during March to June period. It has seen 100 per cent growth at an
average month-on-month basis, and a significant proportion of these are new
adopters.
Upstox said it has on-boarded more than 3.4 lakh customers between March
and June, 2020 and an increase of 2 times in trading volume compared to pre-
COVID time. The firm said it has crossed 1 million customer mark in last
month and aim to reach 2 million by December 2020, with even deeper
penetration in Tier 2-Tier 3 cities.
5paise.com said it has seen a significant rise in both volume and investors on its
platform. It added 1.6 lakh customers in April-June period. New customers have
increased by more than 100 per cent. The company's customer base is
predominantly young (age group of 25-35) and come from Tier II and Tier III
markets.
"India was traditionally known as nation with high rate of savings. But in the
last 5-7 years our saving as percentage of GDP went down from 37 per cent to
30 per cent. I strongly feel that this pandemic has made people realize the
importance of savings and investing. The trend of investing in stocks either
directly or through mutual fund will continue for retail investors as there are
hardly asset classes left to invest and earn decent returns," said Prakarsh
Gagdani, the CEO of 5paisa.com.
In terms of trading activity, it has seen the average number of daily trades in
April-June rising by 30 per cent as compared to preceding three months.
Kamath noted that investors are moving away from small-cap and penny stocks,
ignoring SMS tips among others, which generally are a recipe for disaster. This
is extremely positive for the market as tipsters typically erode significant
investor wealth and often serve an ulterior motive.
Going ahead, he said markets will remain cyclical with different trends
dominating over the short term, fundamental research, and buying blue-chip
companies that are not levered or expensive, in high growth industries and
markets with significant room to grow.
