Pankaj Dixit

RESEARCH PROJECT REPORT

(NMBA 035)

ON“A Study On Motives Of Equity Investors At Sharekhan”

ATSHAREKHAN PVT. LTD.

Submitted in Partial Fulfillment of

Master of Business Administration (MBA)

Programme: 2014 – 16 of

Dr.A.P.J. Abdul Kalam University, Lucknow

Under the Supervision of Submitted By

MR. ABHISHEKGUPTA PANKAJ DIXIT

Roll No ------------

Faculty of Management Science

Shri Ram Murti Smarak College of Engineering & Technology, Bareilly

(College Code – 014)

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Shri Ram Murti Smarak College of Engineering & Technology, Bareilly (U.P.)

Faculty of Management Science

Certificate

This is to certify that Mr. PANKAJ DIXIT, a student of MBA IV Semester has completed his Research Project Report titled “A Study On Motives Of Equity Investors at Sharekhan” assigned by MBA Department under my supervision.

It is further certified that he has personally prepared this report that is the result of his

personal survey / observation. It is of the standard expected to MBA student and hence

recommended for evaluation.

(Mr. AbhishekGupta)

Asst. Professor (MBA Department)

Above statement is endorsed.

(Dr. Anant Kumar Srivastava)

Professor & Head – MBA Department

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DECLARATION

This is to declare that I PANKAJ DIXIT student of M.B.A in Shri Ram Murti Smarak College of Engineering and Technology, U.P. have given original data and information to best of my knowledge in the report “A Study On Motives Of Equity Investors At Sharekhan”.

I further state that no part of this information has been used for any assignment but for partial fulfillment of the requirements towards the completion of the above mentioned course.

PANKAJ DIXIT

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ACKNOWLEDGEMENT

I, PANKAJ DIXIT, a student of MBA IIIrd Semester, sincerely thank Mr. Dev Murti, the Chairman

of Shri Ram Murti Smarak College of Engineering and Technology, Bareilly for being associated

with this reputed Institute for my MBA studies.

I am grateful and wish to place on record my sincere thanks to Dr. Anant Kumar Srivastava,

Head of Management Department, for the leadership and guidance and Mr. Abhishek Gupta

(Faculty Mentor) for the moral, academic and problem solving support without which this project

report would not have come up to its present form..

Last but not the least, I would also like to thank my colleagues and staff of the MBA department

and employees of this elite Institute for whatever they have done for helping me out every time in

completion of this project report.

I would also like to extend a vote of thanks to all those people and the websites who guided or

directed me in bringing this project to the reality. Without their guidance and proper support this

project report would not have been possible for me to prepare.

PANKAJ DIXIT

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PREFACE

People invest their money for generating good returns. But in this investment some kind of risk is

involved. All investors have different attitudes towards risk. When it comes to investing, it is

important to consider your risk profile or tolerance carefully, including how comfortable you are

with the possibility of losing money, or that returns on your investments. The risk profile of

investors depends upon their demographic structures or characteristics.

The project deals with the analyzing the investment pattern on the basis of risk profile of investors

at Sharekhan Limited and what are the risk factors that influence the type of investment made by

individuals . As we all know that every person who wants to gain better returns in future they must

have to invest their money in stock market or anywhere else. This study describes the investment

pattern use by different persons while doing investment in stock market keeping different risk in

mind.

The main reason to choose this research is to find out the investment pattern behavior in respect of

their risk bearing capacity and this research helps the company to target the investors according to

their risk ability. The research process chosen by me is qualitative and quantitative research.

Questionnaires in part help me a lot in finding the actual position of the market under the survey

method.

.A sample size of about 96 respondents which includes individual investors as well as corporate

investors was taken for purpose from various parts of Delhi and N.C.R . After the survey was

completed, the data was first stored and then analyzed on the chosen parameters. This analyzed data

was later on converted into graphs. Such as pie chart, bar graphs, etc this was to make result easily

comprehensible by any one going through the report. Later on, all this information was compiled in

the form of a presentable and highly comprehensible report.

After analyzing the data, the problem which has been identified that most of the investors are ready

to bear risk in expectation of higher returns. There is a strong relationship in investment pattern and

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risk bearing capacity of investors while doing investment. For analyzing the data we used chi-

square and phi-Cramer V test in SPSS V 19.0 and use MS Excel 2007 for making graphs.

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CONTENTS

PART A: About the Organization

S.No.List of Tables Page No.

Chapter 1 Origin, vision & mission 9

Chapter 2 Business Profile 11

Chapter 3 Functional Area 12

Chapter 4 Organizational Structure 13

Chapter 5 Services 17

Chapter 6 Achievements/Recognitions 18

Chapter 7 SWOT Analysis 19

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PART B: About the Study & Solution

S.No.List of Tables Page No.

Chapter 1 Introduction 21

Chapter 2 Scope & Objective(s) of the study 22

Chapter 3 Research design 23

Chapter 4 Data Analysis & Interpretation 25

Chapter 5 Findings, Recommendations & Limitations 39

References

Bibliography

Annexure

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CHAPTER 1

ORIGIN

Sharekhan Ltd. is one the leading retail stock broking house of SSKKI group which is running successfully since 1922 in the country. It is the retail broking arm of the Mumbai-based SSKI Group, which has over eight decades of experience in the stock broking business. Sharekhan offers its customer a wide range of equity related services including trade execution on BSE, NSE, Derivatives, depository services online trading, investment advise etc. The firm’s online trading and investment site- WWW.Sharekhan.com – was launched on Feb 8, 2000. The site gives access to superior content and transaction facility to retail customers across the country. Known for its Jrgon-free, investor friendly laugh and high quality research, the site has a registered base of over one lakh customers. The content-rich and research oriented portal has stood out among its contemporaries because of its steadfast dedication to offering customers best-of-breed technology and superior market information. The objective has to let customers make informed decisions and to simplify the process investing in stocks.

On April 17, 2002 Sharekhan launched Speed trade, a net-based executable application that emulates the broker terminals along with host of other information relevant to the Day traders. This was for the first time that a net based trading station of this caliber was offered to the traders.

In the last six months speed Trade has become a de facto standard for the day trading community over the net.

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http://WWW.Sharekhan.com/

VISION& MISSION

Vision

To be the best retail broking brand in the retail business of the stock market.

Mission

To educate and empower the individual investor to make better investment decisions through

quality advices and superior services.

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CHAPTER 2

BUSINESS PROFILE

Name of the company : Sharekhan Ltd.

Year of establishment : 1925

Nature of Business : Service Provider

Services : Depository Services, Online Services

and Technical research.

Number of Employees : Over 3500

Headquarter : SSKAI A-206 Phoenix house,

Phoenix mills Lower Parel,

Mumbai Maharashtra, India

Pin-400013

Slogan : “Your Guide to the Financial Jungle”


Chapter 3

FUNCTIONAL AREA


FUNCTIONAL AREA

EQUITY

NSE

BSE

COMMODITY

MCX

Bullion Copper

Metal etc.

NCDEX

Crude Oil

Black Papper

Menthol etc.

CURRENCY

Euro

Dollar

Yen

Pond

Chapter 4

Organizational Structure


Mr.Dinesh Morakhiya(Owner of Company)

MR. Tarun Shah(CEO)

Mr. Jaideep Arora(Director)

Mr. Shankar Vailaya(Head of Finance &

Legal functions)

Mr.Rishi Kohali(Vice-President of Equity

Derivatives)

Mr. Prathik Gandotra(Head of Research of Equity Derivatives)

Mr. Nikhil Vora(Vive-President

Research

Mr. Dinesh Murakiya- Owner OF the company; The sharekhan group of companies

was brought to life by Mr. Dinesh Murikya. He ventured in to stock trading with an intention to

raise capital for his own independent enterprise. However, he recognized the opportunity offered by

the stock market to serve individual investors. Thus India’s first retail-focused stock broking house

was established in 1925. Under his leadership, Sharekhan became the first broking house to

embrace new technology for faster, more effective and affordable services to retail investors.

Mr. Tarun Shah – Chief Executive Officer (CEO) of the company: A science graduate from St,

Xavier college, Mumbai, Mr. Tarun Shah started his professional life in sales and marketing in a

chemicals company. His hands on approach and rigorous experience in sales led him to a higher

challenges that the capital market provided.

In 1987, he joined SKKI, a brokerage firm with over five decades of legendary service to its credit.

Mr. Shankar Vailaya heads the operations, finance and legal functions. He is responsible for

settlements, depository operations, risk and compliance and regulatory & other legal commitments

and treasury.

Shankar has managed broking operations through the most turbulent tomes of the post securities

scam period in 1992 and has managed to steer clear of a flurry of bad papers in the market during

1994-95.

Mr. Jaideep Arora – Director (Products & Technology) of the company:

Jaideep Arora completed his B. Tech from IIT (Kanpur) and his PGDM from IIM Kolkata.

Jaideep worked with ICICI for 8 years where his work spanned a gamut of functions,


Prathik Gandotra : Head of Research of Equity Derivatives

Rishi Kohli :Vice President of Equity Derivatives

Nikhil Vora : Vice President of Research


Organisational Structure – Sharekhan

Ltd.,Bareilly (Branch Office)


Mr. Atul Verma(Branch Manager)

Mr. Ajay Rawat(Astt. Manager)

Pankaj Dixit(Trainee)

Mr. Gaurav MathurMr. Abhijit Sinha

Mr. Sachin Rathaur(Snr. R.M.)

Mr.Sarvesh Agarwal(A.R.M.)

Mr. Chandulal(ARM)

Mr. Alok Goswami(Astt. Manager)

Chapter 5

Services Of Sharekhan Ltd.

The different types of services offered by Sharekhan Ltd. are as follows:

Equity and Derivatives Trading

Depository services

Online services

Commodities trading

Dial-n-trade

Portfolio management

Share shops

Fundamental research

Technical research


Chapter 6

Achievements/Recognitions

A wired company along with Reliance, Hll, Infosys, etc by ‘Business Today’, January 2004

edition.

It was awarded ‘Top Domestic Brokerage House’ four times by Euro and Asia money.

It was Winner of “Best Financial Website” award.

India’s most preferred brokers within 5 years. “ Awaaz customers Award 2005”.


Chapter 8

SWOT Analysis

Strengths:

It is a pioneer in online trading with a turnover of Rs.400 crores and more than 800 peoples

working in the organization.

SSKI the parent company of Sharekhan has more than eight decades of trust credibility in the

Indian stock market. In the Asian Money Broker’s poll SSKI won the “Indian’s best broking

house for 2004” award.

Sharekhan provides multi-channel access to all its customers through a strong online

presence with www.Sharekhan.com, 250 share shops in 130 cities and a call-center based

dial-n-trade facility.

Sharekhan has dedicated research teams for fundamental and technical research. Which

constantly track the pulse of the market and provide timely investment advice free of cost to

its client which has a strike rate of 70-80%.

Weakness:

Localize presence due to insufficient investments for country wide expansion.

Lack of awareness among customers because of non-aggressive promotional strategies (print

media, newspapers etc.).

Focuses more on HNIs than retail investors which results in meager market-share as compare

to close competitors.

Opportunities:


http://www.Sharekhan.com/

It can easily tap the retail investors with small savings through

promotional channels like print media, electronic media etc.

As interest on fixed deposits with post office and banks are all time low, more and more

small investors are entering into stock market.

Abolition of long term capital gain tax on shares and reduction in short-term capital gain is

making stock market as hot destination for investment among small investors.

Threats:

Aggressive promotional activities by close competitors may hamper Sharekhan’s acceptance

by new clients.

Other players are providing margin funds to investors on easy terms whereas there is no such

facility in sharekhan.

More and more players are venturing in to this domain which can further reduce the earnings

of Sharekhan.


PART B: About the Study & Solution

Introduction:

An investment is commitment of funds made in the expectation of some positive rate of return.

Investment generally involves real assets or financial assets. Real assets are tangible, material things

such as buildings, automobiles and text books etc which are less liquid. Moreover, it is also

necessary to have co-operation of other productive factors to reap benefits. On the other hand

financial assets, are most liquid in nature and it includes deposits, securities etc.

Investments are made to reap handsome return. Investors are interested or hope to achieve higher

reward. So they prefer investments in financial assets as it outweigh the advantages of investment in

real assets. They carefully plan, evaluate and allocate funds in various investible outlets, which offer

safety of principal and continuous return. Investment in equity shares is one of the avenues which

offer greater benefits, along with higher risk.


Objective of Study

I conducted my research to know the investment motive investors in equity shares with the

following objectives:

Investors are interested to invest in long-term gain or short term gain.

There are also other factors that decide the equity investment.

Under this background the researcher decided to conduct a study with following

Objectives:

To study socio economic status of the equity investors.

To assess the motives of the investors in making investment.

To find out the relation between the motives of investors and the factors influencing it.


Chapter 3

Research Design

The research methodology, not only the research methods are but also consider the logic behind the

methods. They are in the contest of our research studied.

And explain why we are using a particular method or techniques and we are using others.

Sampling Techniques:

Random sampling is categorized under probability method. A random sample gives every unit of the

population a known and non-zero chance of being selected in population. Random sampling is also called

proportionate sampling as each class of items is in the same proportion in the sample as in the universe. It

gives each element an equal and independent chance of being selected in sample. In this study the random

sampling is adopted as a sampling technique because there are various levels of people and the have

different mentality for their investment, which are present in the Socio-economic status of the investors.

Location-

Bareilly

The sample size

A sample size of 200 customers was taken for the analysis part. Questionnaire containing 2 questions first

one is, investors invest in equity shares for long-term or short-term. And the second question states the

socio-economic status of investor.

Tools for data collection


A questionnaire was given two hundred (200) samples for basically understanding the

behavior of investors in investing equity shares of Bareilly district.

Field work

I made a questionnaire for the primary data collection to know about motives of Equity investors at

Sharekhan Ltd Bareilly. The questionnaires are filled up by one hundred responds. I must say that it was one

of the most challenging but interesting aspect of my project work. It was challenging because, there was of

course language problem, and convincing or detailing and survey objective was real challenge. It was also a

learning experience in other way.

Research Design

Sample Size 100

Types of data Required Primary Data

Sampling Method to be used Convenience, Judgmental

Statistical analysis to be performed Graphs And Mean.

Type of Research Descriptive

Research instrument and mode of

data collection

Personal Interview through Questionnaire.

CHAPTER 4 PANKAJ DIXIT Page 24

DATA ANALYSIS &

INTREPRETATION

Data analysis is a process of gathering, modeling, and transforming data with the goal of highlighting

useful information, suggesting conclusion, and supporting decision making. Data analysis has

multiple facets and approaches, encompassing diverse techniques under a verity of names, in

different business, science, and social sciences domains. Data mining is a particular data analysis

technique that focuses on modeling and knowledge discover for predictive rather than purely

descriptive purpose. Business intelligence covers data analysis that relies heavily on aggregation,

focusing on business information. In statistical applications, some people divide data analysis into:

➢Descriptive Statistics

➢Exploratory data analysis, and

➢Confirmatory analysis


The research based will be Descriptive Research.

Type of data

1. Primary data

Primary data

The primary or the first hand data will be collected with the help of handing out the questionnaire to

the customers &employees.

Sampling Design

The sample selected for survey was stratified sample. Sample size is 200 Customers


4.1 QUESTIONS & INTERPRETATION: Analysis of Relationship

Table-1: Relationship between sex and motive of investment

SexMotive of Investment

Total

Short Term Gain Long Term gain Dividend

Male 49 (30%) 85 (52%) 30 (18%) 164

Female 7 (19%) 23(64%) 6(17%) 36

Total 56 108 36 200

Male Female0

10

20

30

40

50

60

70

80

90

Short Term GainLong Term gainDividend


Interpretation:

The above table shows that the percentage of investors whose main motive of investment with long-

term gain is as high as 64% in the case of female group. The percentage of investors who prefer

short-term gain is as low as 19% with female group. The percentage of investors who prefer

dividend income is more or less equal in both the categories. It seems that male investors are very

much interested in short-term gain. Hence it is inferred that there exists a relationship between sex

and motive of investment.

Table-2: Relationship between Age and Motive of Investment

Age Motive of InvestmentTotal

Short Term

Gain

Long Term Gain Dividend

Up to 30 14 (27%) 29 (57%) 8 (16%) 51

31-50 34 (31%) 53 (47%) 25 (22%) 112

Above 50 8 (22%) 26 (70%) 3 (8%) 37

Total 56 108 36 200


Up to 30 31-50 Above 500

10

20

30

40

50

60

Short Term GainLong Term GainDividend

Interpretation:

The above table presents that the percentage of investors with the motive of short-term gain is high

(31%) in the second category and low (22%) in the third category. The percentage of investors with

the motive of long-term gain is high (70%) in the third category and low (47%) in the second

category. The percentage of investors with the motive of dividend income is high (22%) in the

second category and low (8%) in the third category. It seems that there is no relationship between

age and motive of investment.


Table-3: Relationship between Marital Status and Motives of Investment

Marital statusMotive of Investment

TotalShort Term

Gain

Long Term

Gain

Dividend

Unmarried 16 (42%) 15 (39%) 7 (18%) 38

Married 40 (25%) 93 (57%) 29 (18%) 162

Total 56 108 36 200

Unmarried Married0

10

20

30

40

50

60

70

80

90

100


Interpretation:

The above table reveals that the percentage of investors with motive of short term gain is high

(42%) in the first group and low (25%) in the second category. The percentage of investors with

long-term gain motive is high (57%) in the second category and low (39%) in the first category. The

percentage of investors whose motive of investment is dividend income, is equal in both categories.


It shows that unmarried investors are highly interested in short-term gain as compared to the

married investors.

Therefore, the marital status influences the motives of investment.

Table-4: Relationship between Educational Qualification and Motive of Investment

Educational

Qualification

Motive of Investment Total

Short Term Gain Long Term Gain Dividend

Up to 12 12 (19%) 12 (57%) 8 (13%) 62

U.G. 11 (20%) 27 (50%) 16 (30%) 54

P.G. 16 (44%) 15 (42%) 5 (14%) 36

Professional 11 (41%) 12 (44%) 4 (15%) 27

Others 6 (29%) 42 (68%) 3 (14%) 21

Total 56 108 36 200


Up to 12 U.G. P.G. Professional Others0

5

10

15

20

25

30

35

40

45


Interpretation:

The above table presents that the percentage of investors with the motive of short-term gain goes on

increasing with level of education except in the fourth and fifth category. And the percentage of

investors with the motive of dividend income is high (30%) in the second category and low (13%)

in the first category. It seems that there is a significant relationship between educational

qualification and motive of investment.


Table-5: Relationship between Occupation and Motive of Investment

Occupation Motive of Investment Total


Agriculture 2 (9%) 17 (74%) 4 (17%) 23

Business 14 (26%) 27(51%) 12 (23%) 53

Employed 27 (30%) 47 (53%) 15 (17%) 89

Professional 9 (38%) 2 (50%) 3 (12%) 24

Unemployed 4 (36%) 5 (46%) 2 (18%) 11

Total 56 108 36 200

Agriculture Business Employed Professional Unemployed0

5

10

15

20

25

30

35

40

45

50



Interpretation:

The above table explains that the percentage of investors with the motive of short-term gain is high

(38%) in the fourth category and low (9%) in first category. The percentage of investors with

motive of long-term gain is high (74%) in the first category and low (46%) in the fifth category. The

percentage of investors with the motive of dividend income is high (23%) in the second category

and low (12%) in the fourth category.

Table-6: Relationship between Monthly Income and Motive of Investment

Monthly IncomeMotive of Investment

TotalShort Term Gain Long Term Gain Dividend

Up to 10,000 35 (27%) 71 (55%) 24 (18%) 130

10,001-20,000 17 (31%) 28 (51%) 10 (18%) 55

Above 20,000 4 (27%) 9 (60%) 2 (13%) 15

Total 56 108 36 200


Up to 10,000 10,001-20,000 Above 20,0000

10

20

30

40

50

60

70

80


Interpretation:

The above table reveals that the percentage of investors with the motive of short-term gain is high

(31%) in the second category and low in the first and third categories (27%). The percentage of

investors with the motive long-term gain is high (60%) in the third category and low (55%) in the

first category. The percentage of investors with the motive of dividend income is high in both first

and second (18%) category.


Table-7: Relationship between Family Member and Motive of Investment

Family Member Motive of Investment Total


Up to 2 3 (20%) 10 (67%) 2 (13%) 15

3 or 4 26 (37%) 32 (45%) 13 (18%) 71

Above 4 27 (24%) 66 (58%) 21 (18%) 114

Total 56 108 36 200

Up to 2 3 or 4 Above 40

10

20

30

40

50

60

70

Series 1Series 2Series 3

Interpretation:


The above table presents that the percentage of investors with the motive of

short-term gain which is as high as (37%) in the second category and as low as (20%). It is high

(67%) in the first category and low (45%) in the second category. The percentage of investors with

the motive of dividend income is high in both the second and third categories (18%) and low (13%)

in the first categories.

Table No-8: Relationship between Sources Utilized for Investment and Motive of Investment

SourcesMotive of Investment

Total

Short-Term

Gain

Long-Tern Gain Dividend

Salary 42 (28%) 79 (54%) 27 (18%) 148

Business Income 5 (31%) 7 (44%) 4 (25%) 16

Borrowings 2 (40%) 3 (60%) NIL 5

More than One 7 (23%) 19 (61%) 5 (16%) 31

Total 56 108 36 200


Salary Business income Borrowings More than One0

10

20

30

40

50

60

70

80

Sort-Term gainLong-term GainDividend Income

Interpretation:

The above Table reveals that the percentage of investors with the motive of short-term gain is high

(40%) in the third category and low (23%) in the fourth category. The percentage of investors with

the motive of long-term gain is high (61%) in the fourth category and low (44%) in the second

category. The percentage of investors with the motive of dividend income is high (25%) in the

second category and low (nil) in the third category.

It shows that the percentage of investors using own sources for investment is higher in comparison

of rest all

Findings


Male candidates more prefer to invest in long term capital gain than female candidates.

People belong to age of 31 to 50 years old like to invest more in stocks.

The married people like to invest more in equity shares than unmarried people.

The study reveals that professionals like to invest more in Equity shares.

People who are employed they prefer to invest in stocks.

Persons who are earning up to Rs 10,000. They like to invest in equity shares.

Persons who have more than four candidates in his family like to invest in stocks.

Persons who are getting salary like to invest in equity shares.

In each Socio-economic status of candidate, the majority of investors are for long-term capital gain.


Recommendations

Candidates who belong to above the age of 50 years they are less interested to invest in equity shares. Advisers should consult them to invest in equity market to earn high return.

Unmarried people are less interested to invest in equity shares. Financial consultant should advise them to invest in equity shares to increase their wealth.

Conclusion


The study reveals that majority of the investors selected for the study have the aim of long-term gain and also there is no relation among the variables like Occupation, Monthly income, family member, Sources utilized for investment in decision making. Hence, it can be concluded that the companies who like to make public issue may publicise the issue in advance in such a way to let the investors think in advance of their investment to earn income from the prospective of long- term gain.

Annexure


Questionnaire

Name:-Contact No:-Que.No1:- Please tick on your Socio-economic status?

Gender

Male

Female

Age

Up to 30

31-50 Years

Above 50 years

Marital Status

Unmarried

Married

Educational

Qualification

Up to 12th

UG

PG

Professional

Others

Occupation

Business

Agriculture

Employed

Professional

Unemployed

Monthly Income

Up to 10,000

Rs. 10,001 to Rs.20,000

Above 20,000


Family Member

Up to 2

3 and 4

Above 4

Sources Utilized for Investment

Own Sources

Business Income

Borrowings

More than One

Que.No2:-Which return do you prefer by your investment?1 2 3


BIBLIOGRAPHYWebsites:


www.sharekhan.com

www.bseindia.com

www.nseindia.com

www.investopedia.com

Magazine:

Outlook money

Book:

C R Kothari


http://www.investopedia.com/

http://www.bseindia.com/

http://www.sharekhan.com/