Upload
pruthviraj-rathore
View
226
Download
0
Embed Size (px)
Citation preview
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 1/99
RESERACH REPORTON
STUDY OF INVESTMENT PATTERNOF AN INVESTOR TOWARDS VARIOUS
INVESTMENT ALTERNATIVES
ATANGEL STOCK BROKING LTD.
JAMNAGAR
SUBMITTED BYGUSAI CHETANGIRI RAMESHGIRI
MBA SEM – IV
GUIDED BYProf. RAJESH FALDU
ACADEMIC YEAR
2005 – 2007
SUBMITTED TOJAYSUKHLAL VADHAR INSTITUTE OF MANAGEMENT STUDIES
(JVIMS)BIPIN T. VADHAR COLLEGE OF MANAGEMENT
JAMNAGAR
AFFILIATED TOSAURASHTRA UNIVERSITYRAJKOT
1
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 2/99
DECLARATION
I undersigned GUSAI CHETANGIRI RAMESHGIRI student of M.B.A.-IV semester
declare that I have prepared this report on “Study of investment pattern of an
investor towards various investment alternatives available before him” at Angel
Stock Broking LTD. Jamnagar under the guidance of Prof. Rajesh Faldu of JVIMS.
I also declare that this project report is my own preparation and not copied from
anywhere else.
(Signature)
___________
GUSAI CHETANGIRI RAMESHGIRII
Roll No.: 23
2
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 3/99
PREFACE
It gives me a great pleasure to write about this stock broking firm which is especially
prepared with the aim to make the learning process complete with the practical
knowledge. I had visited Angel Stock Broking Ltd., at Jamnagar. The project has
covered the main points which I felt necessary and also given by firm. So, from this
project one can get a raw idea of this stock-broking firm.
I have also conducted a research on, “Study of investment pattern of an investor
towards various investment alternatives available before him.” I have try to find out
the preference of an investor amongst the various investment avenues and also the
manner in which he invest his money in that avenue.
I hope this project will also receive its generous support and kind arrangements
Thanking you.
CHETANGIRI GUSAI
3
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 4/99
ACKNOWLEDGEMENT
My visit at Angel Stock Broking Ltd., at Jamnagar and the project work has taken the
help of many known and unknown faces who have directly or indirectly guided me &
help me.
I take this opportunity to express my sincere thanks to Prof. Rajesh Faldu and Mr.
Jwalant Shingala (Branch Manager), at Angel Stock Broking Ltd. who had played a
very important role in the completion of this project.
I also pay special thanks to the employees who have helped me in providing the
knowledge regarding Angel Stock Broking.
Yours truly,
CHETANGIRI GUSAI
4
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 5/99
CONTENTS
Sr.No.
Particulars
Page No.
1. Executive Summary6
2. Introduction7
(a) Company Details 8
(b) Industry Details 31
(c) Regulatory Environment Details 42(d) Competitors Detail 47
3. Problem Formulation 62
4. Research Objectives 63
5. Research Methodology 65
a) Research Designb) Data collection Methodc) Sampling Methodd) Data Analysis
6. Findings 87
7. Limitation of the study 89
8. Conclusions 90
9.Appendixes :a ) Questionnaireb) List of Chartsc) Glossaryd) Bibliography
93
10. Bibliography 99
5
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 6/99
EXECUTIVE SUMMARY
I have taken training Angel Stock Broking LTD. As per my view it is working
efficiently. It is speedily going to take first place among the private players. I have
done organizational study and also conducted a Research Survey on “Study
Pattern of an investor towards various investment alternatives available
before him.”
Every department of Angel is working very efficiently.
Angel Stock Broking LTD. is having a good financial & promoter background. The
main strength of lies in its Research Team comprising of famous ResearchAnalysts in Technical and Fundamental.
In my Research on “Study Pattern of an investor towards various investment
alternatives available before him.”
In my research I have found out that Nowadays the mind set of Indian investor
has also changed towards stock market. Earlier the Indian investor was of the
belief that investing in stock market was risky but nowadays the scenario has
changed and more and more number of persons are investing their money in it.
6
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 7/99
INTRODUCTION
Indian stock market has been growing by lips & bounce. It is one of the favorite areas of
investment amongst many investors. The investors find it much attractive in terms of
making money and good investment destinations.
Various stock broking firms are available in the market to provide services to the
investor and help him in carry out the transaction in the starting from giving advice in
buying particular script / security till the purchase and sale of the script / security. Angel
stock broking is one of those firms available in the market. It assists such investors who
are willing to invest in the stock market and assist them in every activity relating to thestock market.
The scenario of Indian stock market has been changed drastically recently compare to
what it used to be in past. Now it has become much more systematized through the use
of latest technology and new improved soft wares. Due to these latest technology and
soft wares only trading activities in stock market has become much systematic compare
to what it used to be in the past.
I have conducted a Research on “Study Pattern of an investor towards various
investment alternatives available before him.”
7
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 8/99
COMPANY
DETAILS
8
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 9/99
ABOUT ANGEL
In a shot span of 18 years since inception, the Angel Group has emerged as one of the
top five retail stock broking houses in India, having membership of BSE, NSE and the
two leading Commodity Exchanges in the country i.e. NCDEX & MCX. Angel Broking is
also registered as a Depository Participant with CDSL.
The group is promoted by Mr. Dinesh Thakkar, who started this business as a sub-
broker in 1987 with a team of 3. Today the angel group is managed by a team of 1600+
direct employees and has a nation wide network comprising of 12 Regional hubs, 59
branches and 2200+ sub brokers & business associates. The group currently servicesmore than 1.8lac retail clients. The mainline business activities of Angel are:
• Stock Broking
• Derivatives Trading
• Internet Trading
• Wholesale debt market operations
• Depository services NSDL and CDSL
• IPO Distribution
• Commodities Trading
9
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 10/99
COMPANY’S PROFILE
NAME OF THE COMPANY: ANGEL STOCK BROKING LTD.
REGISTERED OFFICE: G-1, Akruti Trade Centre,
Road No. 7, MIDC Marol,
Andheri (E),
Mumbai – 400 093
BRANCH OFFICE: ANGEL STOCK BROKING LTD.
Indraprashta Building, 2nd Floor,
Office 228-229
Pancheshwar Tower Road,
Jamnagar- 361001
FORM OF ORGANISATION: Private Sector
PROMOTER: Dinesh Thakkar
ACCOUNTING YEAR: 1ST April to 31st March
10
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 11/99
VISION
To provide best value for money to investors through:
Innovative products
Trading / investment strategies
State of the art technology
Personalized service
11
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 12/99
STRENGTHS OF ANGEL
•
Understanding the needs of a channel partner and retail investor very well.
• Deriving inspiration from their vision of providing the best value for money to their
clients.
• Strict adherence to compliance norms.
• Ethical business practices.
• Timely research based advice to their clients.
50 member research / advisory team comprising of experienced fundamental and
technical analysis, sector specialties, derivative strategist and commodity analysts
12
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 13/99
QUALITY ASSURANCE POLICY
Angel is committed to being the leader in providing World Class Products & Services
which exceed the expectations of our customers achieved by teamwork and a process
of continuous improvement.
13
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 14/99
BUSINESS PHILOSOPHY
Ethical Practices & transparency in all their dealings
Customer Interest above all
Always deliver what we promise
Effective cost management
14
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 15/99
INVESTMENT PHILOSOPHY
“Given the client’s risk profile, maximize performance by adhering to disciplined
investment approach backed by quality research.”
Angel’s investment philosophy is based on two key attributes:
1. Wealth Creation
2. Wealth Preservation
15
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 16/99
OBJECTIVE OF ANGEL INVESTMENT PHILOSOPHY
Angel’s objective at all time is to protect and then grow your portfolio.
The primary aim is to avoid the thoughts of the declining market and not necessarily
out-perform the rapidly rising market but to consolidate both the periods, which would
result in out-performing the market along with wealth creation.
Angel’s investment philosophy is outlined by in-depth focus on a disciplined long term
investment approach in potential multi-baggers.
The 3 important tenets that we look for in any stock are:
• Consistent, steady & sustainable returns
• Margin of safety
• Low volatility
16
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 17/99
CRM (Customer Relationship Management) Policy
Angel CRM policy is as follows:
“A customer is the most important visitor on our premises. He is not dependent on us
but we are dependent on him. He is not an interruption in our work but is the purpose of
it. We are not doing him a favour by serving. He is doing us a favour by giving us an
opportunity to do so.”
17
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 18/99
ORGANISATION CHART
ANGEL STOCK BROKING LTD, NATIONAL BRANCH
GENERAL MANAGER
HEAD RETAIL SALES MANAGER
ZONAL MANAGER
REGIONAL MANAGER
BRANCH MANAGER
RELATIONSHIP MANAGER
Chart - 1
18
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 19/99
SWOT ANALYSIS
STRENGTH:
• Strong Communication Network.
• Good Image and strong back ground.
WEAKNESS:
• High Employee Turnover.
OPPORTUNITY:
• To get into the segment of such investors who are less risky.
• Marketing at rural and semi-urban areas.
THREATS:• Increasing number of local players.
• Past image of Stock market
MANAGEMENT TEAM
19
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 20/99
Sr. No. Names Designation
1 Mr. Dinesh Thakkar Chairman & Managing Director
2 Mr. Rajen Shah Chief Investment Officer
3 Mr. Phani Sekhar Senior Research Analyst
SERVICES PROVIDED
1. E Broking:
Multiple exchanges on single screen
Intra-day calls & flash news
Historical charts with technical tools
2. Research
20
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 21/99
Daily services
Technical services
Fundamental services
3. Investment Advisory Service
Angel offers personalized advisory services to HNI investors and actively assists themin managing their portfolio...
Web enabled centralized back-office
Centralized help desk services
E-contract notes cum bills
4. Commodities
State-of-the-art internet trading platform
Trading & educational seminar
Efficient risk management
5. Demat service
Hassle free automated pay-in
Wide branch coverage
Centralized billing & accounting
6. Value Added back office service
Centralized help desk services
E-contract notes cum bills
21
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 22/99
RESEARCHDEPARTMENT
TOP QUALITY RESEARCH
Market Outlook at 9:30 AM
A crisp pre-market report that arms our clients with sensitive information before the
opening bell. Key corporate developments, policy announcements, geo-political news
and views are analyzed for their impact on the market
Technical Report at 6:00 PM
22
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 23/99
This report analyses trading patterns, historical background, market position of keystocks and offer short term (1 to 5 days) as well as medium term (10 to 20 days) views.Tracking individual scrips as well as the Sensex and Nifty, its insight cuts through themarket maze
Derivative Analysis Report
The report provides FII activity in derivative segments, change in open interest, put callratio, cost of carry of stock and index based derivative products. Our derivative analystsuse the above tolls to project the movement during the next trading sessions
Commodities Services
Agro Tech Speak:
Mainly gives the investors insight into and a forecast for agro commodities viz. pulses
(urad channa etc); reports on oil complex (soyabean castor etc.) along with spices with
reports on kapas guar seed
23
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 24/99
Call Evaluation:
A report designed for evaluating the calls given by the angel research team where the
reports are classified in 3 broad categories viz. achieved , triumph, not achieved alongwith the trade recommendations
Commodities Tech Speak:
This report mainly equips the investors dealing in MCX segment in commodities like
gold, silver, crude oil, copper etc with the market insight and expert recommendation on
the trading strategies
24
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 25/99
PORTFOLIO
MANAGEMENTSERVICE
Angel PMS – Ideal For
Portfolio Management Services from Angel are essential for investor who needed
Long term wealth generation
Personalized service
25
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 26/99
Investment opportunities in Indian equities
Fundamental research based investment decisions
In essence, all investor who have faith and belief in the Indian growth story and
robust corporate performance would find Angel PMS most suitable to meet their
objectives.
PMS Schemes @ Angel
Scheme 1: Angel OYSTER
Description:
The main objective of the scheme is wealth generation by delivering superior
returns over long term through investments and equity related instruments.
Investment Strategy:
26
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 27/99
To generate wealth on consistent basis rather than outperform by taking
higher risk.
Logic works well and thus will be given weight age along with financials
Early identification of stocks to ride through the entire investment cycle
Timing of investment is important to generate superior returns
Bottom –up approach
Parameters Driving Investment Decision:
Blend of growth and value stocks
Investments in companies regardless of market capitalizations
Keen selection of stocks based on potential for value unlocking based on
key events
Focus on companies which display
* Scalable business potential
* Large market opportunity
* Beneficiary of favorable economic cycle
* Valuation at steep discount to asset value
27
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 28/99
Sectoral Composition:
May include under- researched companies
Portfolio could invested in liquid funds
Investor Profile:
Safety of capital will be of utmost importance
The scheme would be suited for investors having medium to long term
perspective (i.e. 12-18 months)
Scheme 2: Angel BLUE- CHIP
Description:
The objective of the scheme is to generate capital appreciations in the medium to
long term through investments in equities and equity related instruments
comprising predominantly large cap companies.
Investment Strategy:
The scheme will seek to achieve returns through brand based participants
in equity markets by creating a diversified equity portfolio. The portfolio
will be overweight on large cap companies.
28
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 29/99
The portfolio strives at all time to achieve an 80% allocation to large cap
companies.
The allocation of sectors and stocks in the portfolio may be dynamically
structured in tune with changes in broader market conditions
Parameters Driving Investment Decision:
Overweight on large cap stock. However quality mid cap stocks may also
be considered for investment.
Portfolio to comprise of a combination of growth & value stocks.
The portfolio strives to limit the exposure to any sector to less than 25% of
the portfolio size
The portfolio strives to limit the exposure to any stock to less than 10% of
the portfolio size
29
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 30/99
The allocation and composition of medium capitalized stocks to vary based
market conditions
Investor Profile:
The scheme would be suited for investors with low to moderate risk
appetite
The scheme would be suited for investors having medium to long term
perspective.
INDUSTRY
30
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 31/99
DETAILS
INDUSTRY DETAILS
After looking at the details about the company it will be pleasure to get the detail
about the industry. The detail regarding the industry comprises the factors that are too
included in the industry in which the existing company belongs.
31
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 32/99
INDIAN CAPITAL MARKET
The function of the financial market is to facilitate the transfer of funds from
surplus sectors (lenders) to deficit sectors (borrowers). Normally, household have
excess of funds or savings, which they lend to borrowers in the corporate and public
sectors whose requirement of funds far exceeds their savings. A financial market
consists of investors or buyers, sellers, dealers and does not refer to a physical location.
It means that it is not requirement of existence of any physical place in the market. We
can say any condition that it is market when any purchaser and seller come into
existence. And in case of capital market we can say any condition a market when there
is an existence of investors and borrowers of the fund. Formal trading rules and
32
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 33/99
communication networks for originating and trading financial securities link the
participants in the market.
Electronics form of Stock Exchange:
NSE:
Tata consultancy services, a division of Tata sons Ltd., was selected as the
prime contractor and system integrator by the NSE to provide a total turnkey solution for
the money market and capital market’s floorless trading system.
The aim was to enable NSE to provide nation-wide electronic trading with highest
transparency in the market place. Using the client-server architecture, fault-tolerant
computing and in memory database, Tata Consultancy Services solution gave NSE
high visibility and impact.
33
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 34/99
Tata Consultancy Services also developed the local and nation wide clearing and
settlement system to run in oracle RDBMS environment. There are 1069 company has
been listed in the market. In NSE average daily turnover is Rs. 55,499 crore and
average daily 43, 54,568 trades happen
BSE:
BOLT i.e. BSE’s Online Trading System, is designed and developed by CMC Ltd,
now a Tata Group company. This screen-based trading system replaced the manual out
cry method of trading in the ring and went live on March 1995. This enabled BSE to
provide floorless and fully automated screen-based trading facilities in the capital
market instruments with equal access to investors all over the country.
Currently, there are 7314 companies has been listed at BSE and shows an
average daily turn over of Rs. 3515 crore.
34
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 35/99
For the furtherer expansion of its activities, BSE decided to provide web based
trading facility to the members as it was felt that Internet trading would fundamentally
change the way exchange and brokers interact with their customers. Tata Consultancy
Services developed the system with the objective of enabling the exchange to serviceits members and the customers of the members in an efficient manner using the
Internet.
OVERVIEW OF NATIONAL SECURITIES DEPOSITORY LIMITED (NSDL)
In a span of about four years, investors have switched over to electronic (Demat)
settlement and NSDL stands at the center of this change.
NSDL is the first depository to be set up in India. It was incorporated on Dec. 12,
1995. IDBI the largest development bank in India, UTI the largest Indian mutual fund
and the NSE the largest stock exchange of India sponsored the setting of NSDL and
subscribed to the initial capital. NSDL commenced operations on Nov. 8, 1996.
35
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 36/99
The following organizations are the shareholders of NSDL
• Industrial Development Bank of India
• Unit Trust of India
• National Stock Exchange
• State Bank of India
• Global Trust Bank Ltd.
• Citibank NA.
• Standard Chartered Bank.
• HDFC Bank Ltd.
• The Hong Kong and Shanghai Banking Corporation Ltd.
• Deutsche Bank.
• Dena Bank.
• Canara Bank
Promoters / Shareholders
• Promoters
• Industrial Development Bank of India Limited
• Unit Trust of India
• National Stock Exchange of India Limited
• Other Shareholders
36
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 37/99
• State Bank of India
• Oriental Bank of Commerce
• Citibank NA
•
Standard Chartered Bank• HDFC Bank Limited
• The Hong Kong and Shanghai Banking Corporation Limited
• Deutsche Bank
• Dena Bank
• Canara Bank
• Union Bank of India
CORE SERVICES OF NSDL
37
CORE
SERVICE
S
Accountopening
CORPORATE
ACTION
PLEDGEANDHYPOTHE-CATION
STOCKLENDING
ANDBORROWI
NG
PUBLICISSUES
TRADING ANDSETTLEMENT
DEMATERI-LIZATION
TRANMISSIN AND
NOMINATION
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 38/99
Operations performed at a depository are as follows:-
• Holds Securities in accounts
• Transfer Securities between accounts
• Transfers without handling physical securities.
• Safekeeping of securities
In the Depository:-
• All joint holders to sign instructions.
• No minimum balance required.
• Interest can be earned only be participating in Stock Lending Scheme.
38
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 39/99
• Does not move balances in account without account holder’s authorization.
• Signature and photograph of nominees to be provided.
• Providing the safety of shares of the share holders which are in their Demat
account and in the Trading account.
SERVICE STANDARDS OF NSDL
A DP has to deal in business with the following characteristics:-
• Sensitive and Demanding clients
• Intense competition on the price front due to which the profit margins are under
tremendous pressure
• Thin profit margins require high volume of clients/transactions for operating the
DP services profitably
• High volume of business is error prone, unless supported by appropriate systems
and quality of manpower
39
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 40/99
OVERVIEW ABOUT CENTRAL DEPOSITORY SERVICES (INDIA)
LIMITED (CDSL)
CDSL is the second depository set up by the Bombay Stock Exchange
(BSE) in India. It commenced its operations on March 22, 1999. It was set up
BSE and other co – sponsored with the net worth of Rs. 104 crores. In it BSE has
a 45 % stake while others have 55 % stake. In the same year it has Five Stock
Exchanges established connectivity with it for offering trade in Demat securities
and 765 companies signed up with it to get their securities admitted for
dematerialization. It has 13 DPs in 91 cities across 168 locations covering 320
cities. Other co – sponsored are as under.
• State Bank of India
• Bank of India
• Bank of Baroda
• HDFC Bank
CDSL has also attained membership of the Asia – Pacific Central
Securities Depository Group (ACG). ACG has 22 members including depositories
from Japan, Jog Kong, Singapore, Malaysia, Australia, and New Zealand.
Membership of the organization is expected to help CDSL enhancing its
knowledge base and contributing to the development of other member
organizations in the best international practices, settlement risk management,
cross-border linkage and technological development. This, in turn, would help
CDSL to secure foreign institutional investors’ business through their custodian.
40
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 41/99
Operations Performed by CDSL
• Carrying out actually share transactions
•
To do PSU disinvestments• To provide Centralized system at one e-space
• To secure Foreign Institutional Investors’ business
• Dematerialization of the Securities
• Pledge creation in against the securities
• Rematerialization
• Trading and settlement on day to day basis
• Work as a custodian of its clients
41
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 42/99
REGULARTORY
ENVIRONMENT
DETAILS
42
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 43/99
REGULATORY ENVIRONMENT DETAILS
LEGISLATION
The four main legislations governing the securities market are:
(a) The Securities Contracts (Regulation) Act, 1956, preventing transactions
in securities by regulating the business of dealing insecurities
(b) The Companies Act, 1956, which is a uniform law relating to companies
throughout India
(c) The SEBI Act, 1992 for the protection of interests of investors and for
promoting development of and regulating the securities market, and
(d) The Depositories Act, 1996 which provides for electronic maintenance and
transfer of ownership of dematerialized securities.
RULES AND REGULATIONS
The Government has framed rules under the SCRA, SEBI Act and the
Depositories Act. SEBI has framed regulations under the SEBI Act and the
depositories Act for registration and regulations of all market intermediaries, for
prevention of unfair trade practices, insider trading, etc. Under these Acts,
Government and SEBI issue notification, guidelines, and circulars which need to
be compiled with by market participants. The self-regulatory organizations
(SROs) like Stock Exchanges have also laid down their rules.
43
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 44/99
REGULATORS
The regulators ensure that the market participants behave in a desired
manner so that the securities market continues to be a major source of finance
for corporate and government and the interest of investors are protected. The
responsibility for regulating the securities markets shared by Department of
Economic Affairs (DEA), Department of Company Affairs (DCA), Reserve Bank
of India (RBI), Securities and Exchange Board of India (SEBI) and Securities
Appellate Tribunal (SAT).
44
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 45/99
OBJECTIVES OF SEBI
The promulgation of the SEBI ordinance in the parliament gave status to
SEBI in 1992. According to the preamble of the SEBI, the three main objective
are:
• To protect the interests of the investors in securities
• To promote the development of securities market
• To regulate the securities market
FUNCTIONS OF SEBI:
The main functions entrusted with SEBI are:
• Regulating the business in stock exchange and any other securities
market
• Registering and regulating the working of stock brokers, share transfer
agents, bankers to the issue, trustees of trust deed, registrars to am issue,
merchant bankers, underwriters, portfolio managers, investment advisers
and such other intermediaries who may be associated with securities
market in any manner.
• Registering and regulating the working of collective investment schemes
including mutual funds
• Promoting and regulating self-regulatory organizations
• Prohibiting fraudulent and unfair trade practices in the securities market
• Promoting investors education and training of intermediaries in securities
market
• Prohibiting insiders trading in securities
• Regulating substantial acquisition of shares and take over of companies
• Calling for information, undertaking inspection, conducting enquiries and
audits of the stock exchanges, intermediaries and self-regulatory
organizations in the securities market.
45
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 46/99
REGISTRATION OF INTERMEDIARIES:
The intermediaries with securities market shall buy, sell or deal in
securities after obtaining of registration from SEBI, as required by section 12:
1. Stock-broker
2. Sub-broker
3. Share transfer agent
4. Banker to an issue
5. Trustee of the trust deed
6. Registrar to an issue
7. Merchant banker
8. Underwriter
9. Portfolio manger
10. Investment advisor
11. Depository
12. Depository participant
13. Custodian of securities
14. Foreign institutional investor 15. Credit rating agency
16. Collective investment schemes
17. Venture capital funds
18. Mutual funds
19. Any other intermediary associated with the securities market
46
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 47/99
COMPETITOR’SDETAILS
47
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 48/99
COMPETITORS DETAILS
•
STOCK HOLDING CORPORATION OF INDIA LIMITED
• MOTILAL OSWAL
• ICICI BANK
• SHARE KHAN
• UTI BANK
• MARWADI GROUP
• CENTURION BANK
• HDFC
• KOTAK
• PRANAV SECURITIES
• MERRILL LYNCH
• OTHER STOCK BROKERS
• ANAGRAM SECURITIES
48
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 49/99
SHCIL (STOCK HLDING CORPORATION OF INDIA LIMITED)
Stock Holding Corporation of India Limited (SHCIL) was promoted by
public financial institutions and insurance majors like IDBI, UTI, ICICI, LIC, GIC
and its subsidiaries, IFCI and IIBI. SHCIL was incorporated as a public limited
company on July 28, 1986.
SHCIL provides depository, post trading, custodial services,
securities lending, to institutional investors and retail investors.
Other auxiliary services provided by SHCIL include derivatives clearing,
PF fund accounting, SGL constituent account services, mutual funds and other
capital market instruments distribution
MOTILAL OSWAL
The company came into existence in 1987 with small business house. The
following are the function of the motilal Oswal
They are the Distributor of Mutual Funds same as Karvy they are the ARN
code holder who can sell the mutual fund of all the company
49
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 50/99
They have registered themselves with NSE and do the functions of
Derivatives market, commodity market, cash market
ICICI BANK
ICICI Bank is India's second-largest bank with total assets of about
Rs.1,67,659 crores at March 31, 2005 and profit after tax of Rs. 2,005 crores for
the year ended March 31, 2005 (Rs. 1,637 crores in fiscal 2004). ICICI Bank has
a network of about 560 branches and extension counters and over 1,900 ATMs.
ICICI Bank offers a wide range of banking products and financial services to
corporate and retail customers through a variety of delivery channels and through
its specialized subsidiaries and affiliates in the areas of investment banking, life
and non-life insurance, venture capital and asset management. ICICI Bank set
up its international banking group in fiscal 2002 to cater to the cross border
needs of clients and leverage on its domestic banking strengths to offer products
internationally. ICICI Bank currently has subsidiaries in the United Kingdom,Canada and Russia, branches in Singapore and Bahrain and representative
offices in the United States, China, United Arab Emirates, Bangladesh and South
Africa.
SHAREKHAN
50
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 51/99
Sharekhan is an equities focused organization tracing its lineage to SSKI,
a veteran equities solutions company with over 8 decades of experience in the
Indian stock markets.
In the stock markets. Sharekhan does not claim expertise in too many
things. Sharekhan's expertise lies in stocks and that's what he talks about with
authority. So when he says that investing in stocks should not be confused with
trading in stocks or a portfolio-based strategy is better than betting on a single
horse, it is something that is spoken with years of focused learning and
experience
Sharekhan brings a user- friendly online trading facility, coupled with a
wealth of content that will help investors stalk the right shares.
UTI BANK
UTI BANK is a registered member (Depository Participant) of NSDL.
India’s first depository. We can avail all of the depository-related services by just
opening an account with NSDL through UTI Bank.
UTI Bank provides services like dematerialization of shares,
rematerilialization, pledge-Hypothecation, freezing/ locking Of Accounts, transfer
of shares and settlements, receipt of corporate benefits, holdings & transaction
statements on email, tele depository services.
51
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 52/99
MARWADI SHARES AND FINANCE PRIVATE LIMITED
Marwadi Shares And Finance Pvt. Ltd. Was incorporated in
1992.Marwadi Group servicing more than 75000 clients, more than 554 pin
codes. The company ranked among top 50 broking houses. It has 250 franchisee
/ sub-brokers and authorized person’s network.
CENTURION BANK
Centurion Bank, as its very positioning suggests, has an extensive
network of branches across India. And each of these branches are harnessed to
state of the art technologies to offer unparallel customer service. But of course,
we go way beyond merely offering our valued customers technology driven
solutions. Centurion Bank constantly endeavors to offer customized services that
are driven by customer requirements rather than just exhibiting technologicalprowess.
Among Centurion Bank’s greatest strengths is the fact that it is a
professionally managed bank with a globally experienced management team.
52
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 53/99
They provide services like Personal Banking, Retail Loans, NRI Services, Demat,
Cash Management, e PAY solutions
HDFC (HOUSING DEVELOPMENT FINANCE CORPORATION)
HDFC was found over two decades ago, in 1977, their solution for
success is customer satisfaction. They think “All you need is the courage to
innovate, the skill to understand your clientele and the desire to give them your
best.”
Today, over a million satisfied customers whose dreams are realize by
HDFC, stand testimony to their success. Their objective, from the beginning, has
been to enhance residential housing stock and promote home ownership.
Now, their offerings range from hassle-free home loans and deposit
products, to property related services and a training facility.
They also offer specialized financial services to their customer base
through partnerships with some of the best financial institutions worldwide.
KOTAK SECURITIES
Kotak Securities, an affiliate of Kotak Mahindra Bank, is the stock-
broking and distribution arm of the Kotak Mahindra Group. The institutional
53
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 54/99
business division, which brings you AKSESS, primarily covers secondary market
broking. It caters to the needs of foreign and Indian institutional investors in
Indian equities (both local shares and GDRs, Global Depository Receipts). The
division also has a comprehensive research cell with sectorial analysts covering
all the major areas of the Indian economy.
The group a net worth of over Rs.1, 550 crores and employs over 3,000
employees in its various businesses. With a presence in 59 cities in India and
offices in New York, London, Dubai and Mauritius, it services a customer base of
over 5, 00,000
Kotak Mahindra has partnerships with Goldman Sachs (one of the world's
largest investment banks and brokerage firms), Ford Credit (one of the world's
largest dedicated automobile financiers) and Old Mutual (a large insurance,
banking and asset management conglomerate).
Pranav Securities
Pranav Securities is India's first ISO 9001: 2000 certified broking house. A
Rs. 120 mn. Net worth – among the better capitalized houses in the industry. A
fully professional, young and dynamic organization promoted by Mr. Pranav M.
Shah and the Sonex Group of Hong Kong presence on all the leading exchange
segments on the cash and Derivative markets. Expertise in cross border
ADR/GDR trades and servicing FIIs special understanding of the particular needs
of OCBs and NRIs. Track record of profitable ideas fro our clients with research
54
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 55/99
inputs that are widely quoted in local and international print/electronic media. A
veritable galaxy of research products catering to different time horizons and
investment needs.
MERRILL LYNCH
Merrill Lynch is one of the world’s leading financial management and
advisory companies, with offices in 36 countries and total client assets of
approximately $1.6 trillion, at the end of 2004.
Merrill Lynch has three core businesses – Global Private Client, Global
Markets & Investment Banking Group and – offering a range of services for
private clients, small businesses, institutions and corporations, and financial
intermediaries
Merrill. As an investment bank, the company is a leading global
underwriter of debt and equity securities and strategic advisor to corporations,
governments, institutions and individuals worldwide.
Through Merrill Lynch Investment Managers, the company is one of the
world’s largest managers of financial assets, with assets under management of
$501 billion at the end of 2004.
55
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 56/99
BAJAJ CAPITAL
Bajaj Capital is SEBI approved merchant bankers, investment advisors
and financial planners. They have a track record of ethical dealings for the last 38
years and have had the honor of helping millions of investors achieve their life's
financial goals.
ANAGRAM SECURITIES
Anagram Securities is the part of the Rs. 2000 crores Lalbhai Group. It
was found in 1993 and is a member of the National Stock Exchange. Last year
their trading crossed Rs. 17000 crores with around 5000 people making. They
are dealing only in Stock Market and nothing else. Though they are doing good
research work regarding companies and market which will be the beneficial to
the investors. Gujarat state is one of the most important fields of their business.
And they have about 30 branches throughout Gujarat
56
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 57/99
PRODUCTS & SERVICES
Angel stock broking offers a full range of financial services and products
ranging from Equities to Mutual Fund to enhance your wealth and hence achieve
your financial goals.
Angel stock broking offers real-time prices, detailed data and news, intelligent
analytics, and electronic trading capabilities, right at your fingertips. This powerful
technology is complemented by our knowledgeable and customer focused
Relationship Managers.
Angel’s Relationship Managers are available to you to help with your
financial planning and investment needs. To provide the highest possible quality
of service. Angel provides full access to all products and services through multi-
channels. Services provided are as below
• Equities & Derivatives
• Depository Services
• Commodities
• Mutual Funds
• IPOs
57
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 58/99
Equities & Derivatives and Commodities:
Our Retail Equity Business caters to the needs of individual Indian and
Non Resident Indian (NRI) investors. Angel offers broker assisted trade
execution, automated online investing and access to all IPOs.
Through various types of brokerage accounts Angel offers the purchase
and sale of securities which includes Equity, Derivatives and Commodities
Instruments listed on National Stock Exchange of India Ltd. (NSEIL). The Stock
Exchange, Mumbai (BSE), NCDEX and MCX.
58
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 59/99
Depository Services
Angel is a depository participant with the National Securities Depository
Limited and Central Depository Services (India) Limited for trading and
settlement of dematerialized shares. Angel performs clearing services for all
securities transactions platform – execute trades through Angel Securities and
settle these transactions through the Angel Depository Services. Angel
Depository Services is part of our value added services for our client that create
multiple interfaces with the client and provide for a solution that takes care of all
your needs.
59
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 60/99
RESEARCH
60
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 61/99
PROBLEM FORMULATION
Research being a logical process definitely follows predetermined or steps in
order to obtain the desired results or outcomes. Though the entire process of
research is quite complex and requires a considerable degree of knowledge and
skill, the step of problem formulation is most challenging and critical one for the
researcher as well as the research. It is rightly said that a problem, well defined is
half solved.
The Research topic undertaken by me is “Study of the Investment Pattern of
an investor towards various investment alternatives available before him. ”
61
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 62/99
Research Objective
Any activity done without any objective cannot turn fruitful. An objective provides
a specific direction to an activity. Objectives may range from very general to very
specific, but they should be clear enough to point out with reasonable accuracy
what researchers wants to achieve through the study and how it will be helpful to
the decision maker in solving problem.
In context of my project study
The main objectives of my research is to” Study of the Investment Pattern of
an investor towards various investment alternatives available before him. ”
However following are the sub objectives.
To identify the investor preference towards various investment
alternatives.
To identify whether the investor is a risk taker or seeks safety of his funds.
What is the ratio of his risk & return?
To identify the short term or long term investor.
62
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 63/99
RESEARCH
METHODOLOGY
63
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 64/99
RESEARCH METHODOLOGY
A research design is a pattern or an outline of a research project’s workings. It is
a statement of only the essential elements of a study, those that provide the
basic guidelines for the details of the project.
If there were no research design, the research would have only foggy notion
about what is to be done. There are numerous specific designs, which can be
classified into three broad categories.
Descriptive Design
Quasi Experimental Design
Experimental Design
64
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 65/99
Descriptive Design:
These designs have its name because they describe a phenomenon
without establishing association between the factors. Hence these designs
are utilized when a need is to produce accurate description of variables.
Quasi Experimental Design :
These designs as the name implies lacks the vigorous qualities of real
experiments particularly valid demonstration of variable association. Still
they are not descriptive ones.
Experimental Design:
These designs are intended to demonstrate cause and effect relationship
such designs can measure communicate variation i.e. degree of change in
one variable ‘y’ when another variable ‘x’ is changed.
In context of my project study
In context of my project study my research design would be descriptive
design.
65
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 66/99
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 67/99
SAMPLING METHOD
The sampling method can be categorized in the following manner:
• Probability Sampling
• Non Probability Sampling
In context of my project study
In my research the sampling method would be Non Probability Judgment
Sampling
Sample Size
In my research the sample size is 100.
67
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 68/99
DATA ANALYSIS
AND
INTERPRETATION
68
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 69/99
INVESTMENT IN VARIOUS ALTERNATIVES
M.F.
20%
Govt.Sec.
22%
Stock market
45%
Commodities
5%
Real estate
8%
Chart- 2
From above graph it is observed that 45% of the people invest in the stock
market, after that Government Securities is the second preferred investment
alternative and Mutual Fund is the third preference for investment and
69
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 70/99
Commodities Market is the least preferred investment alternative amongst all
investment alternatives.
Nowadays, more and more investors are investing in the stock market and
awareness and knowledge of stock market is increasing by leaps and bounce
whereas commodities market in India is not yet preferred by the Investors
compare to other alternatives like Mutual Fund, Government Securities, Real
Estate etc.
INVESTMENT CRITERION
Good return
45%
Quick return
20%
Liquidity
25%
Safety of funds
8%
Other
2%
Chart- 3
The above chart depicts that 45% of the investors wants to earn a goodreturn from their investment after that 25% of the investors prefers that
their investment should provide highly liquidity that means they should be
able to sale them as and when they are in need of money, 20% of the
investor wants quick return from their investment while 8% of the investor
wants safety of their funds.
70
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 71/99
PREFERENCE IN MUTUAL FUND SCHEME
Open - ended
57%
Close - ended
29%
Both
14%
Chart- 4
The above chart depicts that open ended scheme is highly preferable
amongst the Mutual Fund investors. 57% of the Mutual Fund investors
prefer to invest in Open- ended Mutual Fund Scheme while 29% of the
investors prefer to invest in Close ended scheme while 14% of the
investors prefer to invest in both the types of the schemes.
71
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 72/99
The main reason why the investor prefers Open ended scheme is that the
investor has the option of selling his units in the market any time according
to his likings.
INVESTMENT IN GOVERNMENT SECURITIES
K.V.P.
25%
Fixed Deposits
37%
Government
Bonds
9%
N.S.C.
6%
Post -office
Deposits
21%
Other
2%
Chart -5
According to the above chart Fixed Deposits are still the best investment
avenue amongst the investors who invests in the Government Securities
with 37% investors investing in it, after that K.V.P.(Kishan Vikas Patra)
comes second with 25% of the investor investing in it, after that Post office
deposits comes where 21% of the Investors invests money while in N.S.C.
( National Saving Certificate) 6% of the investors are investing money.
72
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 73/99
INVESTMENT IN REAL ESTATE
Land
45%
Building&Infrast
ructure33%
Both
22%
Chart- 6
The investors who prefers Real Estate as an investment alternative 45%
of them prefers Land as an investment alternative while in Building &
Infrastructure 33% of the investor invest their money while 22% of the
investors invest their money in both the investment alternative.
73
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 74/99
INVESTMENT IN COMMODITY
MCX
59%
NCDEX
29%
Both
12%
Chart- 7
Amongst the investors who prefers to invest in the commodity market 59%
of them invest/ trade in MCX while 29% of them invests/ trades in NCDEX
while 12% of them prefers both MCX & NCDEX.
74
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 75/99
INVESTMENT IN MCX
Copper
24%
Gold
42%
Silver
20%
Crude - Oil
10%
Other
4%
Chart- 8
From the chart we can conclude that amongst the investor who prefers to
invest/ trade in MCX trade / invest in Gold most with 42% and after that
copper comes with 24% then silver comes with 20% preference then
crude comes with 10%.
75
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 76/99
INVESTMENT IN NCDEX
Wheat
52%
Kapas
15%
Jiru
6%
Channa
18%
Other
9%
Chart -9
The above chart shows that the investor trade / invest in NCDEX prefers
wheat first with 52% after that channa comes second with 18% and thenkapas with 15% then followed by 6%.
76
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 77/99
TYPE OF INVESTOR IN STOCK MARKET
Investor
33%
Trader
22%
Both
45%
Chart- 10
The above chart depicts that 33% of the investors who prefers stock
market as an investment alternative are investors who invests for a longtime compare to trader with 45% who invest for a shorter period of time.
77
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 78/99
PARAMETERS CONSIDERED BEFORE INVESTING IN ANY
COMPANY
Profitability
44%
E.P.S.
17%
Company image
26%
Market capital
10%
Other
3%
Chart- 11
The above chart depicts the parameters which the investor considersbefore investing into particular script of the company. From the chart we
can conclude that majority of the investors considers profitability first with
44% after that the second preference is given to the company image with
26% followed by E.P.S. with 17% and market capital 10%.
78
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 79/99
HOW INVESTOR TAKES BUYING DECISION IN THE STOCK
MARKET
Own knowledge
13%
Advice from
Broking house
50%
Advice from
Friend/Relative
31%
Other
6%
Chart- 12
The above chart shows the various factors from which the investor takes
the buying decision in the stock market. We can conclude that majority of
the investor takes the buying decision from the advice from the broking
house with 50% and 31% takes from the advice from friends / relatives
while only 13% takes buying decision from their own knowledge.
79
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 80/99
INVESTOR'S RETURN CRITERION
Book Profit
41%
High Return
31%
Moderate
Average Return
21%
Other
7%
Chart- 13
The chart shows the return criteria of the investor who are investing in the
stock market for a longer period of time compare to trader. We can see
from the chart that 41% of the investors have the tendency of booking of
the profit while 31% of the investors are looking for higher return whereas
21% are looking for moderate / average return.
80
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 81/99
TRADING PATTERN OF TRADER IN STOCK MARKET
Intraday
22%
Future & Option
33%
Other
5%
Both
40%
Chart- 14
The above chart depicts the trading pattern of a trader who is investing for
a shorter period of time in the stock market. By looking at the chart we can
say that 33% of the traders prefers trading in Future & Options while 22%
of the traders prefers Intraday as the trading pattern, whereas majority of
them prefers trading in both with 40%.
81
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 82/99
TRADER’S RISK & RETURN RATIO
High Risk& High
Return
43%
Low Risk& Low
Return
21%
Moderate
Risk&Moderate
Return
29%
Other
7%
Chart- 15
The above chart depicts the ratio between the risk & return of a trader in a
Stock Market. The chart shows that 43% of the traders believe in the ratio
of the high risk & return while 29% of the traders believe in Moderate risk /
Moderate return while 21% of the traders are of the side of Low Risk &
Low Return.
82
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 83/99
EDUCATIONAL DETAILS OF THE RESPONDENTS
Under Graduate
48%
Post Graduate
23%
Other
29%
Chart- 16
The chart shows the educational background of the respondents. From
the chart we can see that 48% of the respondents are under graduate
while 23% of them are post graduate whereas 29% of them belong to
other background such as under 12th, 10th etc.
83
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 84/99
INCOME (MONTHLY) OF RESPONDENTS
>10000
26%
10,000-25,000
44%
25,000-35,000
18%
<35,00012%
Chart- 17
The above chart is about the income (monthly) of the respondents which
shows that maximum 44% of them belong to the class of 10,000- 25,0000
while 26% of them belong to the class of <10,000 whereas 18% of the
respondents belong to the class of 25,000-35,000 and 12% of them
belong to the class of >35,000 per month.
84
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 85/99
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 86/99
FINDINGS
• It has been noticed that more and more no. of people are now investing in
the stock market compare to other investment alternatives Mutual Fund,
Government Securities, Real Estate, Commodities market etc.
• The prime criteria of an investor regarding investment are good return
after that liquidity comes second.
• In Mutual fund the investor prefers open ended scheme more than close
ended scheme.
• In Government securities investors first preference is Fixed Deposits than
K.V.P. (Kishan Vikas Patra) comes.
• In Real Estate Land is the favourite investment alternative for Investor.
• In Commodities market Investor trades more in MCX compare to NCDEX
• In MCX investors trade mostly in Gold.
• In MCDEX market investor trade most in Wheat
86
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 87/99
• In Indian Stock Market investor are more of both the types i.e. Investor &
Trader compare to either Investor or Trader
• The Investor before investing into any company first factor he considers
the profitability of the company.
• The investor’s buying decision is highly influenced by the Advice / Tips
from the broking house
• More no. of investors are working on the strategy of booking the Profit.
• More no of traders are doing trading in both the patterns i.e. Intra day &
F.O. (Future & Options.)
• Most of the trader believes in the ratio of high risk & high return
• More no. of respondents belong to the under graduate educational
background
• Most no. of the respondents belong to the income (per month) level
10,000-25,000
• Most no. of the respondents belongs to the middle class.
87
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 88/99
LIMITATIONS
• Due to limitation of time and cost constraints a sample size of only 100
respondents is chosen.
• This research is done within the Jamnagar city only therefore findings
and suggestion given on the basis of this research cannot be considered for
the entire universe.
• Data analysis and interpretation done may not be that strong due to
small sample size.
• The information given by the respondent may not be 100% genuine.
88
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 89/99
.
CONCLUSION
• It has been noticed that more and more no. of investors are now
preferring Stock Market as an investment alternative compare to another
investment avenues.
• The scenario of Indian stock market has been changed compare to what
it used to be in past.
• The investor who seeks safety of his funds and stability of returns
prefers government security compare to other investment alternatives
• The perception of Indian investor regarding Indian Stock Market has
changed drastically. It has been now seen as an investment avenue
compare to earlier when people used to believe that Stock Market is
highly risky.
• Most of the investor in stock market takes the buying decision from theadvice / tips from the broking house.
• The awareness level and knowledge of stock market has been
increasing by leaps and bounce
89
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 90/99
• Professional and Business class, which is considered to be the most
knowledge class, prefers stock market as an investment tool rather than
doing trading.
• The investor prefers Stock Market more because of Good return and
highly liquidity.
• Due to the uncertainty of return and various scams most of the Investors
do not prefer Stock Market as an investment alternative.
• The trader in the stock market believe in taking the more risk and they
believe in the ratio of high risk & high return.
• Most of the investor preferring land as an investment alternative mainly
due to tax saving purpose.
• The investor in Mutual Fund prefers open ended scheme than close
ended scheme.
• The Investor possess less knowledge of Commodity Market compare to
Stock Market
90
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 91/99
RECOMMENDATIONS
• The awareness and knowledge amongst the investors is less regarding
the investment alternatives available before him. So, the company should
conduct various seminars and presentation to guide the investor and
increase their knowledge.
• Company should concentrate more on its Marketing Department
• The high employee turn over is a big concern for the company. So the
company should recruit such persons who can serve the organization for a
long time
• The company should send their representative to the investor and make
them aware of the various services & benefits they get compare to other companies.
91
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 92/99
• The company should also try to come out with some new products which
are not yet launched in the market. This is possible with some Research
and Development. So company should spend on R & D.
QUESTIONNAIRE:
Dear respondents I am conducting a survey on “To Study the Investment Pattern of
an investor towards various investment alternatives available before him.” Kindly
corporate in my research by giving genuine answers.
1. Where do you invest your money?
Mutual fund
Government securities
Stock market
Commodities
Real estate / Properties
Other
2. What is your investment criterion? Good return
Quick return
Liquidity
Safety of funds
Other
92
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 93/99
3. If you are investing in mutual fund then in which scheme do you prefer?
Open-ended scheme
Close-ended scheme
Both of the above
4. If you are investing in Government securities where do you invest your money?
K.V.P.
Fixed deposits
N.S.C.
Post office deposits
Government Bonds
Other
5. If you are investing in real estate where do you invest your money?
Land
Building & Infrastructure
Both of the above
6. If you are trading in Commodity then in which market do you trade?
MCX
NCDEX
Both
7. If you are investing in MCX then in which commodity do you trade most?
Copper
Gold
Silver
Crude-oil
Other
8. If you are investing in NCDEX then in which commodity do you trademost?
Wheat
Kapas Channa
Ziru
Other
9. If you are investing in stock market what type of investor you are?
Investor
93
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 94/99
Trader
Both of the above
10.Which parameters you look before investing in a particular company?
Profitability position
EPS Image
Market capital
Other
11.How you take the buying decision regarding any particular script/security?
Own knowledge
Advice/tips from the broking house
Advise/tips from friends or relatives
Other
12.If you are investor then what is your return criteria?
Book profit
High return
Average/moderate return
Other
13.If you are trader then what is your trading pattern?
Intraday
Future & Option
Both of the above Other
14.If you are a trader what is your risk& return ratio?
High risk & high return
Low risk & low return
Moderate risk & moderate return
Other
15.Personal Information
Name: _______________________________________________
Education:
Under Graduate
94
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 95/99
Post Graduate
Under 12
Other
Social Class:
Upper class
Middle class
Lower class
Income (monthly):
<10,000
10,000 – 25,000
25,000 -35000
>35,000
LIST OF CHARTS
Sr. No, Name of Charts Page No.
1. Organization Chart 18
2. Investment Chart 70
3. Investment Criteria 71
4. Preference in Mutual Fund Scheme 72
5. Investment in Government Security 73
6. Investment in Real Estate 74
7. Trading in Commodities market 75
8. Investment in MCX 76
9. Investment in MCDEX 77
10. Type of investor in Stock Market 78
11. Parameters considered before investing 79
95
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 96/99
12. How investors take buying decision in Stock Market? 80
13. Investor’s return criteria 81
14. Trader’s trading pattern in Stock Market 82
15. Return criteria of Trader in Stock Market 83
16. Educational classification of respondents 84
17. Income (monthly) of respondents 85
18. Social Class of respondents 86
GLOSSARY
Trader:
A trader is a person who deals in the stock or commodities market for the short
period and with a view to earning a good return. His trading period can be ranged
from 1 day to 1 month. A trader is usually a more risk taker.
Investor:
An Investor is a person who invest long term in the stock market compare to
trader. An investor is one who does delivery based buying in stock market. He
can invest for a period ranging from 1 day to 5 to 10 years according to his liking.
MCX & NCDEX:
MCX & NCDEX are the two segments of the Commodity market in which investor
can trade according to his liking.
96
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 97/99
Book profit:
Booking of profit means that an investor / trader sales the securities after earning
a reasonable return.
Liquidity:
Liquidity means the investor’s has the convenience of selling his investment any
time and avail his money as and when he needed and the investor’s money is
not blocked for a certain period of time.
Future & Options:
It is a trading pattern in the stock market in which the trader has the option of
purchasing shares in a lot depending upon the shares and its price. In Future &
Option the trader has the option of purchasing the shares by just paying the
margin money specified by the stock exchange and he can hold these shares up
to last Thursday of the month. In between he can sale the shares according to
his liking but the maximum holding period is last Thursday of the month.
Intra day:
It is a trading pattern in Stock Market in which the trader can purchases or sale
securities for the period of one day only. At the end of the day he has to settle his
trade.
97
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 98/99
BIBLIOGRAPHY
98
8/3/2019 Chetan Final
http://slidepdf.com/reader/full/chetan-final 99/99
WEBSITE VISITED FOR THE PROJECTS
• www.angeltrade.com.
• www.nseindia.com