Study on Investor

8/3/2019 Study on Investor

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Study on Investors Perception towards Stock Market

in Mumbai

SUMMER TRAINING REPORT

Mr.Rohit V.Meshram

Declaration

I,Rohit Vinayak Meshram, the student of Rajiv Gandhi Institute of Technology, Versova,

Andheri(W) studying in M.M.S 2nd

year SEM III hereby declare that this report entitled

Study on Investors Perception towards Stock Market in Mumbai is my original

work and not copied from elsewhere as before for any degree, diploma or course to any

Institute or University.

Name: Rohit Vinayak Meshram Signature:

Date:


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Contents

Chapter 1: Introduction

1.1: History of Indian Stock Exchange 8

1.2:Current scenario of the Indian Stock Market 9

1.3: Brief Description about Stock Exchange in India 9

1.3.1:List of top 10 Blue Chip firms in India

1.3.2: Factors influencing Indian Stock Market

Chapter 2: Literature Review

Chapter 3: About the Organization

3.1: ABOUT EDELWEISS

3.2 Business Principles

3.3 Edelweiss Vision

3.4: Business Lines in Edelweiss

Chapter 4: Research Methodology

4.1 Source of data

4.2 Research design

4.3 Scope & Limitation

4.4 Analysis

Chapter 5: Observation and findings

Chapter 6: Conclusion and Recommendation

Bibliography


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Abbreviations

Questionnaire

\


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Chapter 1: Introduction

1.1 History of Indian Stock Market

The Bombay Stock Exchange (BSE) is known as the oldest exchange in Asia. It traces its history

to the 1850s, when stockbrokers would gather under banyan trees in front of Mumbais Town

Hall. The location of these meetings changed many times, as the number of brokers constantly

increased. The group eventually moved to Dalal Street in 1874 and in 1875 became an official

organization known as The Native Share & Stock Brokers Association. In 1956, the BSE

became the first stock exchange to be recognized by the Indian Government under the Securities

Contracts Regulation Act.

The Bombay Stock Exchange developed the BSE Sensex in 1986, giving the BSE a means tomeasure overall performance of the exchange. In 2000 the BSE used this index to open its

derivatives market, trading Sensex futures contracts. The development of Sensex options along

with equity derivatives followed in 2001 and 2002, expanding the BSEs trading platform.

Historically an open-cry floor trading exchange, the Bombay Stock Exchange switched to an

electronic trading system in 1995. It took the exchange only fifty days to make this transition.

Capital market reforms in India and the launch of the Securities and Exchange Board of India

(SEBI) accelerated the integration of the second Indian stock exchange called the National Stock

Exchange (NSE) in 1992. After a few years of operations, the NSE has become the largest stock

exchange in India.

Three segments of the NSE trading platform were established one after another. The Wholesale

Debt Market (WDM) commenced operations in June 1994 and the Capital Market (CM) segment

was opened at the end of 1994. Finally, the Futures and Options segment began operating in

2000. Today the NSE takes the 14th position in the top 40 futures exchanges in the world.

In 1996, the National Stock Exchange of India launched S&P CNX Nifty and CNX Junior

Indices that make up 100 most liquid stocks in India. CNX Nifty is a diversified index of 50


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stocks from 25 different economy sectors. The Indices are owned and managed by India Index

Services and Products Ltd (IISL) that has a consulting and licensing agreement with Standard &

Poors.

In 1998, the National Stock Exchange of India launched its web-site and was the first exchange

in India that started trading stock on the Internet in 2000. The NSE has also proved its leadership

in the Indian financial market by gaining many awards such as Best IT Usage Award by

Computer Society in India (in 1996 and 1997) and CHIP Web Award by CHIP magazine (1999).

1.2: Current scenario of the Indian Stock Market

The current condition of Indian markets have drastically improved. There is absolute

transparency and instant transactions. All Indian Stock markets are now computerized and

Internet Trading has become a common phenomenon. Indian stock markets have also

developed a dynamic nature and can change from a bullish temperament to a bearish slide. Any

small bit of information or even a rumour from any part of the country can affect the market

and is a fairly accurate indicator of the prevalent atmosphere in the region or country. People

from across the country and globe get in touch with minute wise readings on the stock market

and gain a lot of trading aptitude after daily seeingBSE Stock GainersorBSE top loserslist

which does a world of good to their investment portfolio.

1.3: Brief Description about Stock Exchange in India

A Stock Exchange is the place where investors go to buy/sell their shares

Once a company's public offering is complete, it gets listed in a stock exchange market. After
http://goarticles.com/article/Present-Indian-Stock-Market-Scenario/1734379/http://www.paisawaisa.com/stocks/top-gainers.aspxhttp://www.paisawaisa.com/stocks/top-gainers.aspxhttp://www.paisawaisa.com/stocks/top-gainers.aspxhttp://www.paisawaisa.com/stocks/top-loosers.aspxhttp://www.paisawaisa.com/stocks/top-loosers.aspxhttp://www.paisawaisa.com/stocks/top-loosers.aspxhttp://www.paisawaisa.com/stocks/top-loosers.aspxhttp://www.paisawaisa.com/stocks/top-gainers.aspxhttp://goarticles.com/article/Present-Indian-Stock-Market-Scenario/1734379/


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listing it would be available for trading to all investors in the stock exchanges where they are

listed. In India we have two major stock exchange market. They are:

1. The National Stock Exchange (NSE) &

2. The Bombay Stock Exchanges (BSE)

National Stock Exchange:

The NSE is India's largest and the worlds third largest stock exchange in terms of Transaction

volumes & amounts. The NSE is based out of Bombay. The NSE has set up its trading platform

as a nation-wide, fully automated screen based system. This enables anyone in any part of the

country to trade on shares listed in the NSE.

NSE Index or NIFTY:

The NSE Index or the Nifty Index as it is popularly known, is the index of the performance of

the 50 largest & most profitable, popular companies listed in the index. Each company that is

part of the index has its own weightage in the value of the Index. The value of the Nifty Index is

the weighted average of the prices of these 50 companies.

Bombay Stock Exchange:

The BSE is the oldest stock exchange in Asia. It is situated in Dalal Street in Mumbai. It is the

third largest stock exchange in south Asia and the tenth largest in the world. BSE has over 5000

companies that are listed in it. The objectives of the BSE are similar to that of the NSE. BSE also

uses the latest technologies in the IT field to provide a single place where traders from across the

world can buy/sell shares in the Indian share market.

BSE Index or SENSEX:

The BSE Index or the Sensex as it is popularly known, is the index of the performance of the 30

largest & most profitable, popular companies listed in the index. Each company that is part of the


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index has its own weightage in the value of the Index. Since the number of companies is lesser,

the index variations are higher when compared to the Nifty index.

1.3.1:List of top 10 Blue Chip firms in India Oil and Natural Gas Corporation (ONGC) Reliance Industries National Thermal Power Corporation (NTPC) Indian Oil Corporation (IOC) State Bank of India (SBI) Bharti Airtel Tata Steel Tata Consultancy Services (TCS) ICICI Bank Reliance Communications

1.3.2: Factors influencing Indian stock market

Market trends

In investing, financial markets have market trends that can be classified as primary trends,

secondary trends (short-term), and secular trends (long-term).

A bull market is a prolonged period of time when prices are rising in a financial market faster

than their historical average, in contrast to a bear market which is a prolonged period of time

when prices are falling.

Investors can be described as having bullish or bearish sentiments. Market trends are witnessed

when bulls (buyers) outnumber bears (sellers), or vice versa, consistently over time. In general, a

bull or bear market refers to the market and sentiment as a whole but it can also be used to refer

to specific securities, sectors, or similar ("bullish on IBM", "bullish on technology stocks" or

"bearish on gold", for example).
http://business.mapsofindia.com/india-company/ongc.htmlhttp://business.mapsofindia.com/sectors/private/reliance-industries-limited.htmlhttp://business.mapsofindia.com/india-company/ntpc.htmlhttp://business.mapsofindia.com/india-company/ioc.htmlhttp://business.mapsofindia.com/banks-in-india/state-bank-of-india.htmlhttp://business.mapsofindia.com/communications-industry/companies/airtel.htmlhttp://business.mapsofindia.com/india-company/tata.htmlhttp://business.mapsofindia.com/software-companies-india/tata-consultancy-services.htmlhttp://business.mapsofindia.com/banks-in-india/icici-bank-ltd.htmlhttp://business.mapsofindia.com/communications-industry/companies/reliance-communications.htmlhttp://business.mapsofindia.com/communications-industry/companies/reliance-communications.htmlhttp://business.mapsofindia.com/communications-industry/companies/reliance-communications.htmlhttp://business.mapsofindia.com/banks-in-india/icici-bank-ltd.htmlhttp://business.mapsofindia.com/software-companies-india/tata-consultancy-services.htmlhttp://business.mapsofindia.com/india-company/tata.htmlhttp://business.mapsofindia.com/communications-industry/companies/airtel.htmlhttp://business.mapsofindia.com/banks-in-india/state-bank-of-india.htmlhttp://business.mapsofindia.com/india-company/ioc.htmlhttp://business.mapsofindia.com/india-company/ntpc.htmlhttp://business.mapsofindia.com/sectors/private/reliance-industries-limited.htmlhttp://business.mapsofindia.com/india-company/ongc.html


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Primary market trends Bull market

A bull market tends to be associated with increasing investor confidence, motivating investors to

buy in anticipation of further capital gains. The longest and most famous bull market was in the

1990s when the U.S. and many other global financial markets grew at their fastest pace ever.

In describing financial market behavior, the largest group of market participants is often referred

to, metaphorically, as a herd. This is especially relevant to participants in bull markets since bulls

are herding animals. A bull market is also described as a bull run. Dow Theory attempts to

describe the character of these market movements.

Bear marketA bear market tends to be accompanied by widespread pessimism. Investors anticipating further

losses are motivated to sell, with negative sentiment feeding on itself in a vicious circle. The

most famous bear market in history was the Great Depression of the 1930s.

Prices fluctuate constantly on the open market; a bear market is not a simple decline, but a

substantial drop in the prices of a range of issues over a defined period of time. By one common

definition, a bear market is marked by a price decline of 20% or more in a key stock market

index from a recent peak over at least a two-month period. However, no consensual definition of

a bear market exists to clearly differentiate a primary market trend from a secondary market

trend.

Secondary market trendsA secondary trend is a temporary change in price within a primary trend. These usually last a fewweeks to a few months. A temporary decrease during a bull market is called a correction; a

temporary increase during a bear market is called a bear market rally.


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Whether a change is a correction or rally can be determined only with hindsight. When trends

begin to appear, market analysts debate whether it is a correction/rally or a new bull/bear market,

but it is difficult to tell. A correction sometimes foreshadows a bear market.

CorrectionA market correction is a sometimes defined as a drop of at least 10%, but not more than 20%

(25% on intraday trading).

Major disasters or negative geopolitical events can spark a correction. One example is the

performance of the stock markets just before and after the September 11, 2001 attacks. On

September 7, 2001, the Dow fell 234.99 points to 9,605.85, thoroughly pushing the Dow into a

correction. On September 17, 2001, the first day of trading after the attacks, the Dow JonesIndustrial Average plunged 684.81 points to 8,920.70. That loss officially pushed the Dow, not

just even further into a correction, but a bear market.

Because of depressed prices and valuation, market corrections can be a good opportunity for

value-strategy investors. If one buys stocks when everyone else is selling, the prices fall and

therefore the P/E ratio goes down. In addition, one is able to purchase undervalued stocks with a

highly probable upside potential.

Bear market rallyA bear market rally is sometimes defined as a rise of at least 10%, but not more than 20%.

Notable bear market rallies occurred in the Dow Jones index in after the 1929 stock market crash

leading up to the market bottom in 1932, as well as throughout the late 1960s and early 1970s.

The Japanese Nikkei stock average has been typified by a number of bear market rallies since the

late 1980s while experiencing on overall downward trend.

Secular market trendsA secular market trend is a long-term trend that lasts 5 to 20 years, and consists of sequential

primary trends. In a secular bull market the bear markets are smaller than the bull markets.

Typically, each bear market does not wipe out the gains of the previous bull market, and the next


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bull market makes up the losses of the bear market. Conversely, in a secular bear market, the bull

markets are smaller than the bear markets and do not wipe out the losses of the previous bear

market.

1.3.2:INDIA INFLATION RATE

The inflation rate in India was last reported at 8.62 percent in June of 2011. From 1969 until

2010, the average inflation rate in India was 7.99 percent reaching an historical high of 34.68

percent in September of 1974 and a record low of -11.31 percent in May of 1976. Inflation rate

refers to a general rise in prices measured against a standard level of purchasing power. The most

well known measures of Inflation are the CPI which measures consumer prices, and the GDP

deflator, which measures inflation in the whole of the domestic economy. This page includes:

India Inflation Rate chart, historical data and news.

Country India

Indicator Inflation Rate

Reference Jun/2011

Actual 8.62

Previous 8.72

Impact


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CHAPTER 2. LITERATURE REVIEW

A comprehensive review of Literature on Investors Perception has been carried out on (100).

The factors which motivated and guided the investment decisions of the common stock investors

include

(i) Income from Dividends

(ii) Rapid Growth

(iii) Purposeful Investment as a protective outlet of savings

(iv) Professional Investment Management.

These factors affects investment decision and found that the investors are high risk takers. The

investors possessed adequate knowledge of Government regulations, monetary and fiscal policy.

It has been also studied that the relationship between Stock market reforms and amount of

money invested by the investors. It was found that educative reforms and attractive reforms were

statistically significant but they had negative influence over money invested by investors at the

Stock Market.

This study also shows that investors perception changes from person to person and] studied the

factors that influence towards investors attitude towards investing in equity stocks has a big

impact.


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Chapter 3: About the Organization

3.1 ABOUT EDELWEISS

Edelweiss Capital is a financial services company based in Mumbai, India. Edelweiss Capital

Limited provides investment banking, institutional equities, private client broking, asset

management, wealth management, insurance broking and wholesale financing services to

corporate, institutional and high net worth individual clients. It operates from 43 other offices in

19 Indian cities. Since its commencement of business in 1996, it has grown into a diversified

Indian financial services company organised under agency and capital business lines operated by

the Company and its thirteen subsidiaries.

Edelweiss refers to a rare flower found in Switzerland. You will discover in the companies

identity: A graphic flower that represents ideas. Around it, the protective arms of the letter e

It is the practice of this core thought that has led to Edelweiss becoming one of the leading

financial services company in India. Its current businesses include investment banking, securities

broking, and investment management. It provide a wide range of services to corporations,

institutional investors and high net-worth individuals.

The core inspiring thought of ideas creating wealth and values protecting it is translated into an

approach that is led by entrepreneurship and creativity and protected by intellectual

rigor, research and analysis.
http://en.wikipedia.org/wiki/Financial_serviceshttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Financial_services


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Board of Directors

Mr. Rashesh Shah

Rashesh Shah, Chairman of the Edelweiss Group has over 20 years of experience in public and

private markets in India

Mr. Venkat Ramaswamy

Executive Director and Head of Investment Banking and Co-Founder of Edelweiss.

Mr. Narendra Jhaveri

Mr. Jhaveri, on his return from U.K., after a brief stint with NCAER as Senior Economist, joined

the Economics Dept. of the Reserve Bank of India in 1965.

Mr. Kunna Chinniah

Mr. Kunna Chinniah is Executive Vice President with GIC Special Investments ("GIC SI)Mr. P.N. Venkatachalam

Mr. P.N. Venkatachalam has over 40 years of experience in the banking sector in India and

abroad.

Mr. Berjis Desai

Mr. Berjis Desai is an Independent Director on the Board of Directors of the Company.

Mr. Sanjiv Misra

Mr. Sanjiv Misra is finance professional with over 25 years of Asia Pacific and global experience

with organizations like Citigroup, Salomon Brothers and Goldman Sachs.

EDELWEISS Intellectual Capital:

The senior management of the Group comprises of professional executives having broking,

investment, trading & specialized research experience of over 10 years. They have prior

experience in structuring Indices, carrying out Risk-free Arbitrage, Index Arbitrage as well as

Risk Arbitrage strategies, executing Private Equity Placement, Project Finance, Currency Swap

transactions, Fixed Income and Equity research and portfolio structuring. EDELWEISS broking

& research team has the experience of trading, hedging and developing strategies in Equities,

Derivatives & Commodities. Members of the team analyze alternative investment avenues and

prepare Special Situation Reports. EDELWEISS network of branches across the country is

headed by senior professionals with exhaustive experience and knowledge of the Capital


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Markets. The Group is supported in its daily operations by senior executives who have been with

the Group for several years now with extensive training and experience in their respective areas.

Not only has this given them an excellent grasp over daily operations combined with knowledge

of compliance requirements, it has also resulted in huge loyalty to the firm, the value of which is

indeterminable. The heads of each department are easily approachable at all points of time.

3.2 Business Principles:

Ideas create, values protect is how we define what Edelweiss believes in. But when we say

values protect what do we mean? Heres a handy guide to the values and principles we will live

by and live up to.

We will be a Thinking Organization. We will constantly bring thought to everythingwe do. Our clients and our own success depends on our ability to use greater ideation

and more imagination in our approach.

We will be fair to our clients, our employees and all stake holders. We want our clientsand our employees to be richer for their relationship with us.

We will take care of our People seriously. Our policies in spirit and in letter willensure transparency and equal opportunity for all. We will go beyond the normal goals of

attracting, recruiting, retaining and rewarding fine talent: We will ensure that everyindividual in Edelweiss has an opportunity to achieve their fullest potential.

We will operate as a Partnership, internally and externally. Though individuals are veryoften brilliant, we believe teamwork and collaboration will always ensure a better and

more balanced organization. We will also treat our clients as partners and show them the

same respect and consideration that we would toward our internal team members.

We will focus on the Long Term. Though the world will change a lot in the coming yearsand our assumptions for the future may not hold up, we will reflect on the long-term

implications of our actions. Even when making short-term decisions we will be aware of

the long-term implications.

We will focus on Growth for our clients, employees and shareholders.


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Our Reputation and image is more important than any financial reward. Reputation ishard to build and even harder to rebuild. Reputation will be impacted by our ability to

think for our clients, maintain confidentiality and by our adherence to our value system.

We will Obey and Comply with the rules of the land. We will maintain the higheststandard of integrity and honesty. When we are unclear we will seek clarifications.

We will respect Risk. Our business is going to be a constant challenge of balancing riskand reward. Our ability to constantly keep one eye on risk will guide us through this fine

balance.

Our Financial Capital is a critical resource for growth. We will endeavour to grow,protect, and use our financial capital wisely.

3.3 Edelweiss Vision:

Our vision is to be a leading wealth management service provider acting solely in the financial

interest of our clients through a nationwide network of qualified professionals and business

associates.

Our Philosophy:

Our business is built upon three important cornerstones our Client, Business Associates and

Employees. Our philosophy is unique and clearly defined.

Towards our Client Towards our Business Associates Towards our Employees

Towards our ClientThe Client is the driving force behind what we do. Our goal is to provide the highest quality of

products and services, along with value-added advice and guidance based on the clients needs.

We look to develop long-term relationships with our clients built on strong ethics and trust.


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Towards our Business AssociatesThe power of partnership engenders involvement, respect and mutual support. This is precisely

the relationship that we foster with our Business Associates and Financial Advisors. We provide

a complete platform built upon the best infrastructure and technology to enable our Business

Associates and Financial Advisors to efficiently service the financial needs of our investing

clients.

Towards our EmployeesOur employees are what set us apart. Were all here for one reason - to serve our clients best

interests. It is through leadership and accountability across our organization that we establish a

common direction, encourage creative collaboration and provide an inspiring environment for

our people.

Our Values:

Upholding these values is the primary responsibility of leaders at every level within

EDELWEISS.

Respect for the Individual:

We respect the dignity of each individual, whether an employee, shareholder, client or

member of the general public.

Partnership:

Relationships among our staff members as well as our clients are driven by the power of

partnership. The power of partnership engenders involvement, respect, contribution and

mutual support. We encourage free exchange of ideas and demand teamwork.

Striving for excellence:

While serving our clients we constantly strive for excellence to ensure that they derive

complete satisfaction in their dealings with us.


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Client focus:

We aim to provide the highest quality of products and services to best serve the changing

needs of clients.

Teamwork:

We strive for seamless integration of services through cooperation and collaboration

within and across workgroups and teams.

Meritocracy:

We invest in our employees development and actively strive to be the best at attracting

and retaining talented people. Our success calls for entrepreneurial spirit and initiative

from each individual.

Integrity:At EDELWEISS, our goal is to act in ways that help us to exemplify the highest

standards of personal and professional ethics in all aspects of our business.

Privacy:We respect our clients right to privacy and use information with appropriate discretion


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3.4: Business Lines in Edelweiss:

Financing:Edelweiss Housing Finance Limited (EHFL) is a Housing Finance Company incorporated under

the aegis of the National Housing Bank (NHB). It is part of the Edelweiss Group of Companies.

EHFL has an array of loan solutions which can be tailored to your requi rements. If youre

looking for a Home Loan, do apply to EHFL for the highest loan amount in the shortest time.

Investment Banking:Our Investment Banking business is dedicated to providing corporations, entrepreneurs and

investors, the highest quality independent financial advice and transaction execution. Our

professionals offer a full range of services and transaction expertise, including private

placements of equity, capital raising services in public markets, mezzanine and convertible debt,

EDELWEISS CAPITALLIMITED

FINANCING

ASSETMANAGEMENT

CLIENTADVISORYSERVICES

INSTITUTIONALEQUITIES

INVESTMENTBANKING

WEALTH

MANAGEMENT

PRIVATE

CLIENT

BROKERAGE


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mergers and acquisition and restructuring advisory services. We have a track record of

successfully closing more than 100 transactions to date.

Our focused effort and research-driven approach enable our professionals to be among the most

knowledgeable and best in the business. Our business has been built on strong relationships,

innovation, and uncompromising ethical standards. We aim to create significant value for

entrepreneurs and mature companies by helping them execute the right capitalization strategy.

Asset Management:Edelweiss Asset Management offers a range of investment products and advisory services across

the risk return spectrum to individual and institutional investors. Our close focus on client

requirements is our inspiration in designing products which offer the best opportunity for asset

growth with a constant focus on risk and preservation of capital.

Over the past 7 years we have significantly strengthened our equity product offerings to cover

the entire gamut of products. We have developed significant expertise in providing advisory

services in the alternative investments space through a deep knowledge of nontraditional asset

classes such as derivative.

Our products are designed to provide our clients with superior performance through market

cycles by virtue of our deep understanding of the equities markets and our analytical approach to

risks and return.

Wealth Management: At Edelweiss, Wealth Management is a Practice

It is a specialized profession where our experts combine their efforts to meet the wealth

planning, investment, and financial management needs of individuals, families, family

offices, or corporate.


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More than just Financial ServicesEdelweiss Wealth Management takes one step closer to you, by providing an "all-in-one

approach.

Customized Financial SolutionsAdvice on asset allocation and thereby creating customized financial solutions for

HNWIs, NRIs, Trusts and Corporate

Wide range of Innovative Advisory servicesWe offer advisory services on Structured Products, Portfolio Management, Mutual

Funds, Insurance, Derivative Strategies, Direct Equity, IPOs, Real Estate Funds and Art

Funds.

Based on our holistic investment approach we advise you, using a mix of asset classes

& innovative products.

A Dedicated Edelweiss Wealth Manager (EWM) working for You:


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Client Advisory Services:At Edelweiss Client Advisory Services, our team is driven not just by the quality of our ideas,

but also professional ethics and integrity. We take pride in our philosophy of offering advice

which is in the best interest of our clients. Our emphasis on building long term relationship

ensures that we work closely with our clients empowering them to gain from market

opportunities through our online portalwww.edelweiss.in

www.edelweiss.inis a product that offers a unique online investment experience that is intuitive,

information rich and a hassle-free way to trade online. It defines the next level in online trading

technology.

Private Client Brokerage:The Private Client Services Group at Edelweiss is focused on providing products, strategies and

services to High Net worth Individuals and Corporate Clients. We have geographic reach

through our Branches, Channel Partners & Investment Consultants in over 19 locationsin India.

The PCG team has highly trained equity professionals, who act as your Equity Advisor. Our ESL

Equity Advisor proactively helps you take informed investment decisions and build a healthy

portfolio.

We draw on our strong presence and industry leadership to develop a portfolio of offerings

designed to serve the spectrum of financial needs.

Our main objective is to provide clients with all the tools and services they need to reduce the

administrative burdens of managing money and focus on what you do best - maximizing your

trading performance, building your business, and attracting new sources of capital.

Our investment philosophy is rooted in the following:

Capital preservation is key - Capital gains follow from a well-thought out investment strategy.
http://www.edelweiss.in/http://www.edelweiss.in/http://www.edelweiss.in/http://www.edelweiss.in/http://www.edelweiss.in/http://www.edelcap.com/ContactUs/Contactus_Details.aspx?ReportId=f77f11d1-9b07-4ec2-b110-19d5ec398a07http://www.edelcap.com/ContactUs/Contactus_Details.aspx?ReportId=f77f11d1-9b07-4ec2-b110-19d5ec398a07http://www.edelcap.com/ContactUs/Contactus_Details.aspx?ReportId=f77f11d1-9b07-4ec2-b110-19d5ec398a07http://www.edelweiss.in/http://www.edelweiss.in/


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Invest in stocks with a long term view. Use a combination of top-down and bottom-up approach to arrive at a basket of investment

worthy stocks

Invest on the basis of fundamental analysis of companies taking into account market sentiments. Maintain discipline in booking profits and use index futures to

Institutional Equities: Edelweiss Securities Ltd., a subsidiary of Edelweiss Capital Ltd., is the equities arm of

the Edelweiss Group. The company is a corporate member of both The Bombay Stock

Exchange and The National Stock Exchange of India Limited, providing equity broking

and research services, as well as marketing of equity related products, including

IPOs/FCCBs, to domestic and foreign institutional investors.In our approach lies our difference. In a short span of six years, Edelweiss Capitals

Institutional Equities Business (IE) has become one of the top five domestic brokerage

houses and top three derivatives desks. We are the only brokerage on the Street with a

quant desk that provides a wide product range, servicing all investor categories. Our

innovative mindset, unparalleled research, agile sales teams, and intensive execution

systems have enabled us to relentlessly service our clients in newer and different ways.

We cater to a wide clientele comprising leading domestic and international institutionalinvestors, including Pension Funds, Hedge Funds, Mutual Funds, insurance companies,

and banks.


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OBJECTIVE OF STUDY:

I have selected following objective because it is helpful for me to understand what investors

think before taking investment decision and also helpful to company. Company can analyse

investors perception related to equity share

The project is conducted for the following objective:-

To study their investment capabilities as compared to their savings.

To gain an understanding and knowledge of investment criteria of corporateinvestors especially for Equity share.

To analyse risk bearing capacity of investors.

To understand investors attitude for making investment i.e. whether they willprefer to go for long term, midterm or short term period.

To understand whether investors are monitoring their investment regularly ornot.

To determine better ways of pitching financial products available with thecompany based on the investors perception.


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LIMITATIONS OF STUDY:

Duration of project is not enough to make a conclusion on such a vast subject. Timeconstraint has become a big limitation.

The sample size being taken for drawing a conclusion was too small to get accurateresult.

Changing the mentality of people for investing in a particular financial product is verydifficult task.

Due to inflation, we cannot evaluate accurate research.


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CHAPTER 4: RESEARCH METHODOLOGY

6.1 RESEARCH METHODOLOGY

The methodology of the study involved preparing a questionnaire to understand investors

attitudes on the various factors like investment horizon, purpose of investment, risk attitude etc.

the questionnaire was prepared to ensure that each factor was measured reliably.

6.2 RESEARCH APPROACH

Qualitative as well as Quantitative approach has been used for this research. But the stress was

basically on the quantitative approach.

Quantitative ApproachQuantitative data involves the generation of data in a quantitative form which can be

subjected to rigorous analysis in a formal and rigid fashion.

Qualitative Approach:It is concerned with subjective assessment of opinions and behavior.

6.3 RESEARCH DESIGN

Research Design is the pre-selection of techniques for collection and analysis of data by

considering two important factors in mind :-

Availability of Time Purpose of Research


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In other words, Research Design is like a road map to researcher which tells him about each

and every turning point that comes.

This call for developing the most efficient plan for gathering the necessary information design a

research plan, decision on the data source, research approaches, research instrument, sampling

plan & contact methods .

Descriptive Research is used in studying the investors perception towards Mutual Fund as a

Research design and Cross sectional studies is done to check the authenticity of Data.

Descriptive Research is those studies which are concerned with describing the characteristics of

a particular individual or group.

6.4 SAMPLING UNITS

Sampling units consists of Investors

Total of 100 units constitute the sample for study.

6.5 SAMPLING DESIGN

Sampling is one of the most fundamental concepts underlying any research work. Most research

studies attempt to make generalization or draw inferences regarding the population, based on their

study of a part of the population that is the sample. The sample data enables the researcher to

correctly estimate the population parameters.

There are two method of sampling methods:

1. Probability Method2. NonProbability Method


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As far as study is concerned, I have used Non- Probability sampling as well as Snowball

Sampling. Basically my Sample consists of Retail investors as well as corporate investors.

On the basis of this sampling, I have made my project and finally come on the findings and

conclusion.

6.6 SAMPLING TECHNIQUE

As far as Sampling Technique is concerned, a nicely prepared Questionnaire has been filled

by the Investors at the time of handling their queries. As we know most of the corporate

investors dont have sufficient time to fill up the form so it was found convenient to fill the

information at the time of handling queries.

6.7 SAMPLING SIZE

Sample Size --- 100 Respondents

Sample Type --- Due care was taken that all the 100 respondents included in the sample

were investors of some shape and size. In other words, non investors were not included in the

sample. Efforts were also made to include investors who had varying levels of investment

frequency and invested amount.

6.8DATA COLLECTIONData can be collected in two ways:-

1) Primary Data

2) Secondary Data

As study has been conducted on Investors perception towards EQUITY SHARE, Primary

method of Data collection are used. It is assumed that all data collected are totally unbiased.


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INTERPRETATIONS OF DATA:

7.1 Ratio of equity share investors in general investors:

7.1 Table

Investors Respondent

a) Equity share investors 41

b) Mutual fund investors 27

c) Insurance investors 10

d) Bank investors 17

e) Other investors 5


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7.1 Diagram

Following Patterns were observed:-

A) 41 % respondents in category equity share signify a positive trend towards growingpopularity of equity share as an investment alternative.

B) 27 % respondents who are investing in MF shows that still people believe in investing theirmoney in mutual fund

C) 17 % Respondent invest in bank as they are very conservative people and always try toinvest their money in safer financial product.

Equity share

investors, 41

Mutual fund

investors , 27

Insurance investors, 10

Bank investors ,

17

Other investors , 5

Ratio of equity share investors in generalinvestors


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D) 10% investors invest their money in insurance to protect their future and secure their life.

E) This shows that still 59% are untapped which need to be focused on as it leads to complete100% and it really helps the equity share industry to grow at much faster pace than the way

they are going on.

7.2 Total proportion of income to Investment out of Rs 100.

7.2 Table

Proportion of income Respondent

A) Up to Rs 10 28B) Rs 10 to Rs 20 27C) Rs 20 to Rs 30 35D) More than Rs 30 10


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7.2 Diagram


28% respondent invests up to 10% income in equity share.

27% respondent invests up to 10% to 20% income in equity share.

35% respondent invests up to 20% to 30% income in equity share.

10% respondent invests more than 30% income in equity share.

Up to Rs 10,

28

Rs 10 to Rs 20 ,

27

Rs 20 to Rs 30 , 35

D) More than

Rs 30,

100

5

10

15

20

25

30

35

40

Up to Rs 10 Rs 10 to Rs 20 Rs 20 to Rs 30 D) More than Rs 30

Total proportion of income to Investment out of Rs 100.


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Male Respondents were much likely to invest a greater proportion of their incomes thanFemales respondents. In fact all the 10 respondents in category D were males.

Only 10% respondent invest their more than 30% income in equity share so equity sharemarket should concentrate on remaining 90% respondent and try to maximize respondents %

of income it helps the equity share industry to grow at faster.

7.3 Purpose of investment for equity share Investors

7.3 Table

Purpose Respondent

A) Tax Saving 18B) Returns 45C) Only Saving 9D) Both Tax Saving & Returns 28


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7.3:Diagram


A) 48% Investors are more inclined to get better returns as they want to maximize their Wealththat is they are ready to take risk because higher the risk more the return so equity shareindustry should try to attract such type of investors.

B) In fact 28% people are considering both Tax Saving as well as Returns.

C) Some Respondents give me the response that do invests their money in equity share to makeproper savings and for such investors

Low, 31

Moderate,51

High, 180

10

20

30

40

50

60

Low Moderate High

Risk bearing Capacity of the Investors:-


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7.4 Risk bearing Capacity of the Investors:-

7.4 Table

Risk capacity Respondent

A) Low 31B) Moderate 51C) High 18

7.4 Diagram

Low, 31

Moderate,

51

High, 18010

20

30

40

50

60

Low Moderate High

Risk bearing Capacity of the Investors:-


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1) 18% respondents take high risk while investing their money that is they expect morereturn within short period for such investors high risk products are more suitable. These

types of investors come under category Aggressive money which have a potential of

giving excellent return.

2) 31% respondents take low risk investing their money for such investors lower riskproducts more suitable. These types of investors come under category sacred money

which doesnt have a potential of giving excellent return.

3) 51% respondents take moderate risk while investing their money that is they expectmoderate return in intermediate period. These types of investors come under category

serious money which have a moderate potential of giving excellent return.

7.5 Factors which investors consider before making investment in Equity share

7.5 Table

Factors Respondent

a) Track record 9

b) Brand name 32

c) Services 46

d) Research team 13


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o 46% investors consider better service before taking decision of investment.o 36% investors consider brand image before taking decision of investment.o 13% investors consider research team before taking decision of investment.o 9% investors consider track record before taking decision of investment.

7.6 Position of Investors on the basis of Time Horizon:-

7.6 Table

Time Horizon Respondent

0-1 year 15%

1-3 year 28%

3-5 year 57%


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7.6 Diagram


57% respondent wants to invest their money for 3-5 year or long time; it wasobserved that such kind of investors doesnt want to take risk also.

28% respondent wants to save their money for 1-3 year or mid time.

15% respondents want to invest their money for 0-3 year or short term; it wasobserved that such kind of investors take high risk and expect more return

0-1 year, 15

1-3 year, 283-5 year, 57

Position of Investors on the basis of Time Horizon:-


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7.7 Monitoring of investment in equity share:-

7.7 Table & Diagram

Period Respondent

A) Daily 43B) Weekly 25C) Monthly 20D) Occasionally 12

43%

25%

20%

12%

Monitoring of investment in equity share

Daily Weekly Monthly Occasionally


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DAILY BASIS: from the questionnaire I observed that 43% respondent monitoring theirinvestments on daily basis

WEEKLY BASIS: I observed that 25% of the respondent monitor their investment onweekly basis

MONTHLY BASIS: data shows that 20% of the total respondent monitors theirinvestment on monthly basis.

OCCASIONALLY BASIS: study shows that only 12% respondents are not keeninterested in their investment they monitor their investment occasionally. the reason

behind this may be that they invest their money through broker

7.8 Additional services investors investors expect from their broker

Following services investors expect from their respective broker

Investors want clear information about their investment.

Prompt service with accurate study on vision towards volatility of equity market.

Continuous update one click access to the web and online facilities about equitymarket.


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Broker dont cheat with investors maintains charges; there should be transparencybetween investors and broker.

Best market analyses those can predict information about market volatility.

Better research team which can continuous work on market research.

Investors wants maximum success ratio.

Broker should not take any type of hidden charges.

Some investors satisfied with their broker.

Take minimum maintains charges.

Broker should have experienced financial adviser.


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CONCLUSION:

There is a great potential for in equity share as investors wants to save for various futureobligation.

Since Rate of Interest on Bank deposit is falling people will be attracted towardsinvestments in equity share because of high rate of returns.

People of young age group are ready to take risk and they can be targeted for investmentin equity share.

Now the people are more inclined to make an investment in equity oriented schemes asthey are aware of the fact that market is very volatile and they can make money through

top notch equity share.

Only 10% respondent invest their more than 30% income in equity share so equity sharemarket should concentrate on remaining 90% respondent and try to maximize

respondents % of income it helps the equity share industry to grow at faster.

Before investing in equity share, Investors consider more of services and brand namesectors in which assets allocation is made rather than giving due consideration to track

record and research team.

Only few investors are ready to take high risk; maximum investors are ready to takemoderate risk and some investor not ready to take risk. this indicate that investors are not

ready to invest in equity share due to high volatile market.


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41% investors prefers to invest in equity market and 59% investors not prefers to investin equity market that is equity share market can educate that investors about trends of

equity market to grow at much faster pace than the way they are going on.

Male Respondents were much likely to invest a greater proportion of their incomes thanFemales respondents.


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ANNEXURE

9.1Questionnaire

Project Title : Study of investors perception towards StockMarket

Que.1) Personal details of investor:

Name: -

Profession: - Age: -

Address: - Gender:-

Contact no: - Email: -

Que.2)From how many years are you trading or investing in stock market?

(a)Less than 1 year (b) 1 to 3 years (c)3 to 5 years (d) 5 years above

Que.3)From the following income brackets could you tell me which applies to you with your

annual household income?

(a)Savings/Personal (b)Loans (c)Pledging

Que.4)How do you like to do your trading?

(a)Direct trading (b)Indirect trading

Que.5) Are you using any techniques while trading?

(a)Yes (b) No If yes, which technique__________________


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Que.6)In what kind of stocks you trade or invest in?

(a)Large Caps (b)Mid Caps (c)Small Caps (d)Depends

Que.7) Select each investment with which you are familiar:

(a)Bonds (b) Equities (c)International Stocks (d)Real Estate (e)Commodities

Que.8) When picking an investment, I consider the most Important factor to be the..

(a)How quickly I will be able to increase my wealth.

(b)The opportunity for steady growth.

(c)The amount of monthly income the investment will generate.

(d) The safety of my investment principal.

Que.9)What is your pattern of investing or trading?

(a)Repeatedy invest or trade in same set of stocks.

(b)Invest or trade in vairety of stocks

(c)depends on other factors

Que.10) If your stock market is continues falling and your stocks prices are fallen up to 20%

what will you do..

(a)I Sell it all.

(b)Sell part of the investment.

(c)Hold-neither buys nor sells.

Que.10) According to you what additional services you expect from your Broker?

Documents

Study on Investor