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Sub Code: 830004

Enrollment No:-107320592056

A Project On Consumer Behavior Regarding Investment in Ahmedabad

(As a partial of fulfillment of the Master of Business Administration for Summer Internship Program)

Submitted to
MBA Department LDRP-Institute of Technology and Research, Gandhinagar.
(Affiliated to Gujarat Technological University, Ahmedabad)

Under the Guidance of Prof. S. K. Mantrala Submitted by Dipali Varia MBA-SEM III Sign of External Examiner _______________________ Sign of Internal Examiner _______________________

LDRP-Institute of Technology and Research, Gandhinagar. MBA Department (732) Batch (2010-12)

Preface
Summer Training is the bridge for a student that takes him from his theoretical Knowledge world to practical industry world. The main purpose of industrial visit is to expose for industrial and business environment, which cannot be possible in the classroom. Savings form an important part of the economy of any nation. With the savings invested in various options available to the people, the money acts as the driver for growth of the country. Indian financial scene too presents a plethora of avenues to the investors. Though certainly not the best or deepest of markets in the world, it has reasonable options for an ordinary man to invest his savings. One needs to invest and earn return on their idle resources and generate a specified sum of money for a specific goal in life and make a provision for an uncertain future. One of the important reasons why one needs to invest wisely is to meet the cost of inflation. Inflation is the rate at which the cost of living increases. The cost of living is simply what it cost to buy the goods and services you need to live. Inflation causes money to lose value because it will not buy the same amount of a good or service in the future as it does now or did in the past. The sooner one starts investing the better. By investing early you allow your investments more time to grow, whereby the concept of compounding increases your income, by accumulating the principal and the interest or dividend earned on it, year after year.

The three golden rules for all investors are: Invest early Invest regularly Invest for long term and not for short term

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Acknowledgement

I would like to express my gratitude to all those who gave me the possibilities to complete this thesis. I would like to thank Prof. Surya Krishna Mantrala, Head of Department, LDRP Institute of Technology & Research, Summer Internship Coordinator; Prof. Hemali Broker, who helped me throughout the project and also in the successful completion of my project. She has given a lot of extra input in my project. Besides practical experience, I have gained a lot out of this project. I am thankful to all the faculty members of MBA department for their continuous support & guidance for the completion of this project. I am thankful to LDRP College for giving me an opportunity to do project. I would like to thank Mr. Sujit Nair (Reginal Head), Mr. Abbas Bhojani (Branch Manager), Mr. Jay Valani (Franchise Manager), Ms. Hetal Shah (HR Manager) BMA Wealth

Creators, Ahmedabad and college authorities for providing me the opportunity to work with one of the prestigious organization. Through this column, it would be my utmost pleasure to express our warm thanks to her for their encouragement, co-operation and consent without which we mightnt be able to accomplish this project.

Dipali Varia

LDRP Institute of Technology & Research, Gandhinagar

Executive Summary

Investing in equities in a market like India is speculative and involves risk that may be greater than other types of investment strategies. Before investing an Investor should be careful enough about him investment decision to avoid erosion of wealth. As seen in the recent times the unpredictability of market is more detrimental to the retail investors as it seems to be lucrative for speculative gains of short duration of time. Hence an investor has to evaluate his options carefully for a prudent investment, keeping long-term horizon in mind. The report has tried to bring out the parameters those are of paramount importance to general public dealing in an equity trading on day-to-day and delivery base trading. The working methodology has been discussed i.e. the data collection methods, sampling methods and the survey questionnaire methods. The questionnaire prepared is designed so as to cover a wide range of customer touch points The report gives an overview about the investors perception think while making investments in different type of financial instruments. A sample of 100 people was selected randomly and survey was done as per the parameters of the questionnaire. The results of every parameter have been included in this report and shown graphically (Pie Charts, bar graphs etc.) A complete structure of the research design has been included. From the all survey which I have done throughout my project is giving me the final conclusion which shows that which financial instrument is good or useful to the investors in future to make investment. It also shows that which instrument give profit to the investors. In this project I have used many statistical instruments like hypothesis and cross tabulation. This is very important statistical test.

LDRP Institute of Technology & Research, Gandhinagar

With the help of all data in which I have done cross tabulation of different question with different factors like Income, Age, and Occupation. This shows that they are dependent or independent on any of the above factor.I have also used hypothesis testing in the ranking question. This shows that which investors give highest rank and lowest rank to the different plans. Highest rank shows that the investors are satisfied with that and vise a versa. So they are select rank as per their thinking and what they believe. So overall what the investors want to take in mind while they are going for investing their money is important for them. And they have to take in mind all the factors which affect their investment/money.

LDRP Institute of Technology & Research, Gandhinagar

TABLE OF CONTENTS
Serial No. Preface Acknowledgement Executive summary 1. 2. 3 4. 5. Introduction of Project Literature Review Research Methodology Industry Profile Company Profile Mission & Vision BMA Management Team Corporate Entities Product & Services SWOT Analysis 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. Conceptual Framework Major Competitors Different types Of Financial Instruments Data Analysis & Interpretation Findings & Recommendation Contribution From The Study Learning During The Study Limitations of the study Conclusion Bibliography Appendix Questionnaire 14-15 16-20 21-32 33-75 76-77 78-79 80 81 82 83 84 Content Page Number I II III 1 2-3 4-6 7-8 9-13

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List of charts and tables


Table & Chart no. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Content Age Gender Marital Status Occupation Income Years of investment Various Instrument Period of Instrument Purpose of Instrument Instruments % of Saving in Investment Direct into Equity Kinds of Stocks Induces to Invest in Intraday Pattern of Investment Kind of Investing or Intraday Induces to stay in Investment Reasons to Invest in Mutual Fund Reasons to Invest in Insurance Induces to Invest in Particular Option Awareness Page Number 33 34 35 36 37 38 39 40 41 42 43 44 45 50 55 56 61 62 63 64 65

LDRP Institute of Technology & Research, Gandhinagar

CHAPTER 1 Introduction of Project


Knowledge & human power are synonymous, once said the great philosopher Francis Bacon. However based on experience within todays global markets, he would probable say the ability to capture, communicate and leverage knowledge to solve problems is human power. This raises the question; how exactly one can best capture, communicate and leverage knowledge, especially within the world of marketing knowledge. The answer probably lies in the statement itself, by communicating your ideas & devising ways and means to give to shape your plans into reality. This requires long term planning and shrewd thinking, for it is the long-term investments that will ultimately help you scale great height. The report contains useful and preliminary data regarding available instrument to invest in market. It is very difficult to cover each and every financial instrument so in this project I have explained some of the Instrument which is important in the market. Whatever may be the limitation in my way, I have tried to fully justify my project. By combining the theoretical knowledge and practical experience of training gained by me, I have tried to make the project report as good and ideal as possible. I have tried to present all theoretical and practical aspects of project in simple and lucid language. The basic principles, which we (an investor) should use in creating investment strategy: a) Harness the power of compounding b) Start early c) Have realistic expectations d) Invest regularly

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CHAPTER 2 Literature review:


Literature suggests that major research in the area of investors behavior has been done by behavioral scientists such as Weber (1999), Shiller (2000) and Shefrin (2000). Shiller (2000) who strongly advocated that stock market is governed by the market information which directly affects the behavior of the investors. Several studies have brought out the relationship between the demographics such as Gender, Age and risk tolerance level of individuals. Of this the relationship between Age and risk tolerance level has attracted much attention. Horvath and Zuckerman suggested that one s biological, demographic and socioeconomic characteristics; together with his/her psychological makeup affects one s risk tolerance level. Malkiel suggested that an individual s risk tolerance is related to his/her household situation, lifecycle stage and subjective factors. Mittra discussed factors that were related to individuals risk tolerance, which included years until retirement, knowledge sophistication, income and net worth. Wallach and Kogan (1961) were perhaps the first to study the relationship between risk tolerance and age. Cohn, Lewellen found risky asset fraction of the portfolio to be positively correlated with income and age and negatively correlated with marital status. Morin and Suarez found evidence of increasing risk aversion with age although the households appear to become less risk averse as their wealth increases. Yoo (1994) found that the change in the risky asset holdings were not uniform. He found individuals to increase their investments in risky assets throughout their working life time, and decrease their risk exposure once they retire. Lewellen while identifying the systematic patterns of investment behavior exhibited by individuals found age and expressed risk taking propensities to be inversely related with major shifts taking place at age 55 and beyond. Indian studies on individual investors' were mostly confined to studies on share ownership, except a few. The RBI's survey of ownership of shares and L.C. Gupta's enquiry into the ownership pattern of Industrial shares in India were a few in this direction. The NCAER's
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studies brought out the frequent form of savings of individuals and the components of financial investments of rural households. The Indian Shareowners Survey brought out a volley of information on shareowners. Rajarajan V classified investors on the basis of their demographics. He has also brought out the investors' characteristics on the basis of their investment size. He found that the percentage of risky assets to total financial investments had declined as the investor moves up through various stages in life cycle. Also investors' lifestyles based characteristics has been identified. The above discussion presents a detailed picture about the various facets of risk studies that have taken place in the past. In the present study, the findings of many of these studies are verified and updated.

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CHAPTER 3 Research Methodology:


Objectives of the Study:
The purpose of the analysis is to determine the investment behavior of investors and investment preferences for the same. Primary Objective (1) The main objective of my project is to study consumer behavior regarding investment in India. (2) To identify the objective of investment plan of an Ahmedabad individual investor. (3) To know the preferred investment avenues of the Ahmedabad individual investor. (4) To study the different types of risks involved in different kinds of investments. Secondary objective (1) To identify the preferred sources of information influencing investment decisions. (2) To find out how investors get information about the various financial instruments.

Scope of the Study:


Investment has been subjected to speculations and inefficiencies, which are beached to the rationality of the investor. Traditional finance theory is based on the two assumptions. Firstly, investors make rational decisions; and secondly investors are unbiased in their predictions about future returns of the stock. However financial economist have now realized that the long held assumptions of traditional finance theory are wrong and found that investors can be irrational and make predictable errors about the return on investment on their investments.

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This analysis on Individual Investors Behavior is an attempt to know the profile of the investor and also know the characteristics of the investors so as to know their preference with respect to their investments. The study also tries to unravel the influence of demographic factors like age on risk tolerance level of the investor.

Sampling technique
Initially, a rough draft will be prepared keeping in mind the objective of the research. The final questionnaire will be arrived at only after certain important changes are incorporated. Convenience sampling technique will be used for collecting the data from different investors. The investors are selected by the convenience sampling method. The selection of units from the population based on their easy availability and accessibility to the researcher is known as convenience sampling. Convenience sampling is at its best in surveys dealing with an exploratory purpose for generating ideas and hypothesis.

Sampling unit:
The respondents who will be asked to fill out the questionnaires are the sampling units. These comprise of employees of companies, government employees, self employed, professionals and other investors.

Research Instrument
In this study the research instrument is Questionnaire. It consists of set of question presented to respondents. The questionnaire is structured & combinations of various close and open ended questions. Close ended question already have the possible answers and the open ended question allow the respondents to answer in their own word. Hypothesis testing and cross tabulation is also used in this survey.

Sampling size: 100 customers


Formula for sample size = z2 p q/ e2 Confidence interval: 95%,
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Error: 0.05 P= 1/10, q= 9/10 From Z value table Z= 1.645 n = (1.645*1.645*0.1*0.9)/0.05*0.05 = 97.4169 So we have taken n = 100

Sampling Method: Probability Sampling. Sampling area: The area of the research is Ahmadabad.

Collection and Sources of data:


Market research requires two kinds of data, i.e., primary data and secondary data. Primary data: The data, which are collected for the first time, directly from the respondents to the base of knowledge & belief of the research, are called primary data. So far as this research is concerned, primary data is the main source of information. The data collected is through questionnaire & information provided by the respondent. Secondary data: When data are collected & compiled in a published nature, it is called secondary data. So far as this research is concerned, Internet & many magazines and the brochures have been referred as secondary data. Analysis and findings of Report: The collection of data it converts into the useful information which consist tabulation of data with the help of statistical measures.

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CHAPTER 4 Industry Profile


Indian financial industry is considered as one of the strongest financial sectors among the world markets. Many industry experts may give various reasons for such Indian financial industry reputation, but there is only one answer which no one can deny, is the effective control and governance of the country s supreme monetary authority the RESERVE BANK OF INDIA (RBI). Financial sector in India has experienced a better environment to grow with the presence of higher competition. The financial system in India is regulated by independent regulators in the field of banking, insurance, and mortgage and capital market. Government of India plays a significant role in controlling the financial market in India. Ministry of Finance, Government of India controls the financial sector in India. Every year the finance ministry presents the annual budget on 28th February. The Reserve Bank of India is an apex institution in controlling banking system in the country. Its monetary policy acts as a major weapon in India's financial market.

Various governing bodies in financial sector: RBI: - Reserve Bank of India is the supreme authority and regulatory body for all the monetary transactions in India. RBI is the regulatory body for various Banking and Non Banking financial institutions in India. SEBI: - Securities and Exchange Board of India is one of the regulatory authorities for India's capital market. IRDA: - Insurance regulatory and development authority in India regulates all the insurance companies in India. AMFI: - Association of mutual funds in India regulates all the mutual fund companies in India FIPB: - Foreign investments promotion board regulates all the foreign direct investments made in India.
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Success in India Success in India will depend on the correct estimation of the country's potential, underestimation of its complexity or overestimation of its possibilities can lead to failure. While calculating, due consideration should be given to the factor of the inherent difficulties and uncertainties of functioning in the Indian system. Entering India's marketplace requires a well-designed plan backed by serious thought and careful research. For those who take the time and look to India as an opportunity for long-term growth, not short-term profit- the trip will be well worth the effort. Market potential India is the fifth largest economy in the world (ranking above France, Italy, the United Kingdom, and Russia) and has the third largest GDP in the entire continent of Asia. It is also the second largest among emerging nations. (These indicators are based on purchasing power parity.) India is also one of the few markets in the world which offers high prospects for growth and earning potential in practically all areas of business. Yet, despite the practically unlimited possibilities in India for overseas businesses, the world's most populous democracy has, until fairly recently, failed to get the kind of enthusiastic attention generated by other emerging economies such as China. Lack of Enthusiasm among Investors The reason being, after independence from Britain 50 years ago, India developed a highly protected, semi-socialist autarkic economy. Structural and bureaucratic impediments were vigorously fostered, along with a distrust of foreign business. Even as today the climate in India has seen a sea change, smashing barriers and actively seeking foreign investment, many companies still see it as a difficult market. India is rightfully quoted to be an incomparable country and is both frustrating and challenging at the same time.

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CHAPTER 5 Company Profile


Founder Chairman: B huramal Mulchand Agarwalla Head Office: Kolkata

BMA Wealth Creators Limited A premier in the financial services industry, BMA Wealth Creators Specializes in extending customized financial solutions to individuals and corporate. The Company works towards understanding your financial ambitions and adjusts to your risk profile. Their expertise combined with thorough understanding of the financial markets results in appropriate investment solutions for you. The 1000 crore BMA Group has created its forte by promoting successful ventures in the fields of coal mining, refractory, steel and Ferro alloy in the form of established names in the market such as BMA Stainless Steel (Captain TMT Bars), Prop. Snowtex Udyog Ltd, Anjanery Ferro Alloys Limited, Maithan Alloys Limited, Maithan Smelters Limited and BMA International. Its continuous strive to achieve excellence and growth keeps it abreast of the latest in technology and best business practices, thereby making it customer oriented while forging alliances, high quality standards and proactive business cultures. They at, BMA Wealth Creators, realize your dreams, needs, aspirations and concerns as closely as you do. This is reflected in every move we make with and for you because our relationship with YOU matters to us. Companys Competitive Strength lies in its people. Their Regional Management Team works hand in hand with the Companys Risk Management System and specializes in retail operation handling a large and diverse distribution network, putting in record an unfaltering track of growth and profit.

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MISSION
To establish itself as a financial supermarket providing integrated investment services.

VISION
To provide integrated financial services thereby building Investor wealth and confidence.

Promoter Group
Founded by Late Shri Bhuramal Agarwalla in 1920 with coal mining business which was nationalized during 1971 and 1973, BMA is an INR 11 billion business group today. The group currently has business interests in refractories, ferroalloys, iron & steel, financial services and cement industries. It has geographic presence across the country through manufacturing facilities in west Bengal, Jharkhand, Assam, Meghalaya and Andhra Pradesh. These facilities are supported by marketing office all over India. The group has sourav ganguly, Kolkata knight riders, ICC Corporate Olympiad (Kolkata), The CNBC money Yatra as its endorsements. It is also the principle sponsors of CNBC Awaaz Yatra.

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Management Team
This Company is managed by a team of highly qualified and experienced professionals from the finance industry across the country. Know more about them:

Corporate Entities

BMA Wealth Creators heads two companies under its corporate umbrella. They are:

BMA Wealth Creators Limited:


A leading financial organization, BMA Wealth Creators Limited is a one-stop solution centre for all financial services, queries and ideas of its clients. The Company holds corporate membership in two of the leading bourses of the country viz. National Stock Exchange Limited and Bombay Stock Exchange.

BMA Commodities Private Limited :


The Company holds corporate membership in commodities exchange NCDEX and MCX besides being SEBI approved, AMFI registered Mutual Fund advisory and intermediary.
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SWOT ANALYSIS

Strength:
Companys strength is their Product UTS (Unlimited Trade Scheme). Biggest strength of

BMA Wealth creators is flat brokerage charges per trade 1 paisa. Company is also Providing Lifetime D-mat a/c with lowest cost without any maintenance charges.

Weaknesses: Most of the Customers are not aware about the company and their product. Company does not have a good marketing department.

Opportunities: Company has better future option in stock broking firm. Indian financial market is rapidly growing and BMA is in initial stage and expanding its business across India so company has an opportunity to take advantages of growth of finance sectors in India.

Threat: There are various competitors in the market so company has to differentiate their product from the other company. Many companies have entered in the market because of that company has to take best step to attract more customer to invest in their firm.

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CHAPTER 5 Conceptual Framework


In todays world there has been flow of capital from developed country economie s, which has high potential for growth. FIIs and other investor invest in emerging market based on their study about country economic and socio-political situation of the country. They keep on switching investment from country to country on basis on their research and analysis. In case of India after liberalization many changes has taken place. There has been an increasing importance of Indian economy. The way Foreign Institutional Investors (FIIs) see this and Overseas Corporate Bodies (OCB) are bringing their money in Indian capital market. It has been predicted that India will become one of the world fastest growing economy. Based on economic size, income and demographics, global demand pattern and currency movement. India will change into a larger and rich consumer market. Changing consumption pattern increasing household saving Investment is the money you earn partly spent and rest is invested for meeting future goals. This is called investment. Need to invest to: I. Earn return on our idle resources ii. Generate a specified sum of money for a specific goal in life iii. Make a provision for an uncertain future IV to beat inflation. More specifically, an investment is the current commitment of money for a specific period in order to derive future payments that will compensate for (1) the time the funds are committed (2) the expected rate of inflation and (3) the uncertainty of the future payments.

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Choosing the Right Investment Options


The choice of the best investment options for you will depend on your personal circumstances as well as general market conditions. For example, a good investment for a long-term retirement plan may not be a good investment for higher education expenses. In most cases, the right investment is a balance of three things: Liquidity, Safety and Return. Liquidity - how accessible is your money? How easily an investment can be converted to cash, since part of your invested money must be available to cover financial emergencies. Safety - what is the risk involved? The biggest risk is the risk of losing the money you have invested. Another equally important risk is that your investments will not provide enough growth or income to offset the impact of inflation, which could lead to a gradual increase in the cost of living. There are additional risks as well (like decline in economic growth). But the biggest risk of all is not investing at all. Return - what can you expect to get back on your investment? Investments are made for the purpose of generating returns. Safe investments often promise a specific, though limited return. Those that involve more risk offer the opportunity to make - or lose - a lot of money. To a large extent, the choice of the right investment option will also depend upon your financial goals. For example, if you want to invest for funding your vacation next year, don't choose an investment vehicle that has a three-year lock-in. Similarly, if you want to invest for your daughter's marriage after 10 years, don't invest in 1yr bonds for the next 10 years. Instead, choose an option that matches your investment horizon.

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CHAPTER 6
MAJOR COMPETITORS
There are many competitors which is stand in competition with BMA. Some of the companies like Kotak securities, Angel Broking, Motilal oswal securities, Sherkhan Ltd, India Bulls Private Ltd, India Infoline etc are the major competitors of the BMA. Some are explain as follow which are major competitors of BMA & they have to face competition for stand in these competitive market.

Kotak Securities

Incorporated in 1994, Kotak Securities Limited, the leading stock broking house of India is 100% subsidiary of Kotak Mahindra Bank. Company offering includes stock broking through the branch and Internet, Investments in IPO, Mutual funds and Portfolio management service. It also offers portfolio management services to high net worth individuals and corporate customers. Kotak securities also distributes a range of financial products, including company fixed deposits, mutual funds, initial public offerings, secondary debt, equity, and small savings schemes. Most of the services provided by the company are available through its internet portal. In early 2009 company launched Saxo's global trading platform in India. This platform provide direct access to equities, ETF's and REITS spanning 24 stock exchanges across the USA, Europe, Asia and Australia.

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Angel Broking
1 Angel Broking's tryst with excellence in customer relations began in 1987. Today, Angel has emerged as one of the most respected Stock-Broking and Wealth Management Companies in India. With its unique retail-focused stock trading business model, Angel is committed to providing Real Value for Money to all its clients. The Angel Group is a member of the Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and the two leading Commodity Exchanges in the country: NCDEX & MCX. Angel is also registered as a Depository Participant with CDSL

Motilal Oswal

Motilal Oswal Securities Ltd. (MOSL) was founded in 1987 as a small sub-broking unit, with just two people running the show. Focus on customer-first-attitude, ethical and transparent business practices, respect for professionalism, research-based value investing and implementation of cutting-edge technology has enabled us to blossom into an over 1600 member team. Today Company is a well diversified financial services firm offering a range of financial products and services such as Wealth Management, Broking & Distribution, Commodity Broking, Portfolio Management Services, Institutional Equities, Private Equity, Investment Banking Services and Principal Strategies.

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Company has a diversified client base that includes retail customers (including High Net worth Individuals), mutual funds, foreign institutional investors, financial institutions and corporate clients. They are headquartered in Mumbai and as of March 31st, 2011, had a network spread over 611 cities and towns comprising 1,644 Business Locations operated by our Business Partners and us. As at March 31st, 2011, they had 709,041 registered customers.

Indiabulla

Indiabulls Group is one of the country's leading business houses with business interests in Power, Financial Services, Real Estate and Infrastructure. Indiabulls Group companies are listed in Indian and overseas financial markets. The Net worth of the Group is Rs 16,844 Crore and the total planned capital expenditure of the Group by 2013-14 is Rs 35,000 Crore. Indiabulls Securities (ISL) is one of India's leading capital markets companies providing securities broking and advisory services. Indiabulls Securities also provides depository services, equity research services and IPO distribution to its clients and offers commodities trading through a separate company. These services are provided both through on-line and off-line distribution channels. Indiabulls Securities is a pioneer of on-line securities trading in India. Indiabulls Securities in-house trading platform is one of the fastest and most efficient trading platforms in the country. Indiabulls Securities has been assigned the highest rating BQ-1 by CRISIL. Other main listed companies:

Indiabulls Financial Services (IBFSL) is one of Indias leading non-banking finance companies providing Home Loans, Commercial Vehicle Loans and Secured SME Loans. The company has a net worth of Rs 4,661 crore with an asset book of Rs 19,796 Crore. The company has disbursed loans over Rs 50,000 Crore to over 3,00,000 customers till date. Amongst its financial services and banking peers, Indiabulls Financial Services ranks amongst the top few companies both in terms of net worth and capital adequacy. Indiabulls Financial Services has been assigned
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AA+ rating and has presence in over 87 cities and towns with a total branch network of 170 branches.

Indiabulls Real Estate (IBREL) is among India's top Real Estate companies with development projects spread across residential complexes, integrated townships, commercial office complexes, hotels, malls, Special Economic Zones (SEZs) and infrastructure development. Indiabulls Real Estate partnered with Farallon Capital Management LLC of USA to bring the first FDI into real estate in the country. The company has a networth of Rs 7,505 Crore and has purchased prime land, mostly in the metros and other Tier 1 cities worth Rs 4,000 Crore in government auctions alone. Indiabulls Real Estate is currently developing 61 million sqft into premium quality, high-end commercial, residential and retail spaces. The company has been assigned 'A+' rating.

Indiabulls Power (IBPOW) is currently developing Thermal Power Projects with an aggregate capacity of 5400 MW. The first unit is expected to go on stream in May 2012. The net worth of Indiabulls Power is Rs 3,919 Crore. The company has a total capital expenditure of Rs 27,500 Crore. The company has been assigned 'BBB' rating.

IndiaInfoline
The IIFL (India Infoline) group, comprising the holding company, India Infoline Ltd (NSE: INDIAINFO, BSE: 532636) and its subsidiaries, is one of the leading players in the Indian financial services space. IIFL offers advice and execution platform for the entire range of financial services covering products ranging from Equities and derivatives, Commodities, Wealth management, Asset management, Insurance, Fixed deposits, Loans, Investment Banking, GoI bonds and other small savings instruments. IIFL recently received an inprinciple approval for Securities Trading and Clearing memberships from Singapore Exchange (SGX) paving the way for IIFL to become the first Indian brokerage to get a membership of the SGX. IIFL also received membership of the Colombo Stock Exchange becoming the first foreign broker to enter Sri Lanka. IIFL owns and manages the website,
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www.indiainfoline.com, which is one of Indias leading online destinations for personal finance, stock markets, economy and business IIFL has been awarded the Best Broker, India by FinanceAsia and the Most improved brokerage, India in the AsiaMoney polls. India Infoline was also adjudged as Fastest Growing Equity Broking House - Large firms by Dun & Bradstreet. A forerunner in the field of equity research, IIFLs research is acknowledged by none other than Forbes as Best of the Web and a must read for investors in Asia. Our research is available not just over the Internet but also on international wire services like Bloomberg, Thomson First Call and Internet Securities where it is amongst one of the most read Indian brokers. A network of over 2,500 business locations spread over more than 500 cities and towns across India facilitates the smooth acquisition and servicing of a large customer base. All our offices are connected with the corporate office in Mumbai with cutting edge networking technology. The group caters to a customer base of about a million customers, over a variety of mediums viz. online, over the phone and at our branches.

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CHAPTER 8 Types of Financial Instruments


Investment planning is necessary for everyone who wishes to achieve any financial goal. We have to plan our limited resources to avail the maximum benefit out of them. We should plan our investments to fulfill major needs like:

Creating wealth over the long term Acquiring assets like a dream house or a dream car Fulfilling our need for financial security

Thus, Investment Planning is nothing but a holistic approach to meet our life's goals so There are different types of investment instruments available in market, from them few are listed below. Stock market Mutual Funds Insurance Real Estate Post office savings Commodity Others Fixed Deposits Gold Government Securities Bonds PPF(Public Provident Fund) These are the different available investment instruments in market in which one can invest and gain the maximum return over a specified period of time.

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Stock market
Basics of the Stock Market The stock Exchange is a great alternative for the savings of people and institutions. It permits them to obtain an important profitability against other types of official markets even if it means assuming, possibly, a greater risk. Stocks, a term used to symbolize an investors ownership of a company, are typically traded on exchanges, a mechanism that allows buyers and sellers to converge and engage in the process of buying and selling of stocks. An investor who buys a companys stock becomes one of the companys owners, or a shareholder, and theoretically owns a percentage of everything the company owns. The percentage being determined by how much stock the shareholder owns. In reality, however, only those who own large amounts of shares in any particular company have any real power to change the course of the company. There are a number of different exchanges in operation through which securities can be bought or sold. The more popular exchanges are NSE and BSE. How to invest in stock market Shar e market is a place for t he bu ying and selling of shares of Public Lt d. Co mpanies. It is basically an online dealing process. There ar e t wo t ypes of E xchanges in I ndian Market : NSE BSE

1. NSE : means Nat io nal St ock Exchange o f India 2. BSE: means Bo mba y St ock Exchange o f India.

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For t he purpose of do ing t rading of S hares one needs t o have, 1. D-Mat Account : means De - mat er ializat ion A/c t o maint ain t he shares purchased in so ft dat a for m and not in physical for m. 2. Regist rat ion wit h t he Broker aft er opening an D - Mat A/ c. t hrough which you want t o t rade.

Benefits of Stock Market Trading It promotes economic growth. It helps companies raise capital and handle financial issues. It ensures that money is invested in businesses to enhance profit potential. It helps investors realize substantial profits.

Disadvantage of Stock Market Trading: It proposes lower leverage than other forms of trading, such as Forex trading. The short selling of stocks is hard, because stock prices do not appreciate significantly in a short span of time. Accordingly, there is a wait period before you can book healthy profits. It is traded for limited hours in a day.

Mutual Fund
A mutual fund is a professionally-managed firm of collective investments that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities. In a mutual fund, the fund manager, who is also known as the portfolio manager, trades the fund's underlying securities, realizing capital gains or losses, and collects the dividend or interest income. The investment proceeds are then passed along to the individual investors. The value of a share of the mutual fund, known as the net asset value per share (NAV), is calculated daily based on the total value of the fund divided by the number of shares currently issued and outstanding.
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Depend ing upon t he nat ure t here are basic ally t wo t ypes of mut ual fund:

Open Ended: It is t he mut ual fund which you can buy and sell at any po int of t ime, whic h doesnt have any fixed mat ur it y per iod.

Close Ended: It is t he mut ual fund which we can bu y only dur ing t he init ial o ffer and not dur ing it s rout ine per iod, it cant be also redeemed unless t he end o f t he per iod specified in t he o ffer. T hat means it have a fixed mat ur it y per iod, onl y aft er which you will receive yo ur mon ey back.

Advantages of Mutual Funds

Diversification

Liquidity Convenience Transparency Flexibility Tax benefits. Well regulated

Disadvantages of Mutual Funds: No Guarantees Fees and commissions Taxes Management risk

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Insurance
Having the right kind of insurance coverage is an essential part of building a solid financial future. You can insure your house, your vehicle, and even different parts of your body. Through insurance you are equipped to meet any financial risks or crisis. In simple terms, insurance is a contract between you and insurance company or association. Under this contract the insurance company gives consent that they will bear the financial losses for reasons such as theft or some natural calamities in return for a fixed monthly premium. The main and the important part of the insurance contract is the policy document. According to the policy document in whatever financial crisis you maybe the insurance company will be taking care of all your expenses. It is recommended to take help from any insurance agent as the process can be sometimes very complicated. Taking proper guidance from an expert will beneficial as to get a suitable and profitable deal. Types of Insurance Health Care Insurance Life Insurance Home Insurance Travel Insurance Auto Insurance

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Real Estate
Most of the people make use of real estate as investment opportunity. Real estate is a big market. People use different trends while looking the real estate market. Investing in real estate is now a great way of earning money. Investment in real estate involves the ability to afford. Some people prefer commercial real estate to residential properties. However, the trends of real estate keep on changing always. The cause of change in real estate trends can be anything ranging from change in economy to rising interest rate and much more. Every real estate investor should have at least the basic knowledge of the real estate law. A real estate agent can be of great help in this regard. It is necessary to gather comprehensive information about real estate before making any deal.

Post office savings


There are various investment schemes available in post offices, like KVP (Kisan Vikas Patra), MIS (Monthly Income Scheme) and various others. All these schemes are completely riskfree, and you do not need to have large sum of money to start investing in these post office schemes. Some schemes offer Tax-saving benefits and some gives tax-free returns. So you need to find out some scheme as per your requirements. These are some of the safe and secure investments that you can choose for. Though the interest rates are not so high, but still you must invest some part of your money into any of these investment instruments. It is your hardearned money, so better play safe and invests some part in secure funds also.

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Commodity
The terms commodities and futures are often used to depict commodity trading or futures trading. It is similar to the way stocks and equities are used when investors talk about the stock market. Commodities are the actual physical goods like gold, crude oil, corn, soybeans, etc. Futures are contracts of commodities that are traded at a commodity exchange like MCX. Apart from numerous regional exchanges, India has three national commodity exchanges namely, Multi Commodity Exchange (MCX), National Commodity and Derivatives Exchange (NCDEX) and National Multi-Commodity Exchange (NMCE). Forward Markets Commission (FMC) is the regulatory body of commodity market. It is one of a few investment areas where an individual with limited capital can make extraordinary profits in a relatively short period of time. Many people have become very rich by investing in commodity markets. Commodity trading has a bad name as being too risky for the average individual. The fact is that commodity trading is only as risky as you want to make it. Those who treat trading as a get-rich-quick scheme are likely to lose because they have to take big risks. If you act carefully, treat your trading like a business and are willing to settle for a reasonable return, the possibility of success is very high. The course of trading commodities is also known as futures trading. Unlike other kinds of investments, such as stocks and bonds, when you trade futures, you do not really buy anything or own anything. You are speculating on the future direction of the price in the commodity you are trading. This is like a bet on future price direction. The terms "buy" and "sell" merely indicate the direction you expect future prices will move. If, for example, you were speculating in wheat, you would buy a futures contract if you thought the price would be going up in the future. You would sell a futures contract if you thought the price of wheat would go down. For every trade, there is always a buyer and a seller. Neither person has to own any wheat to participate. But he has to deposit sufficient capital with a brokerage firm to insure that he will be able to pay the losses if his trades lose money.

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Working of Commodity Market: Commodity Market works Just like stock futures. When you buy Futures, you don't have to pay the entire amount, just a fixed percentage of the cost. This is known as the margin. Let's say you are buying a Gold Futures contract. The minimum contract size for a gold future is 100 Gms. 100 Gms of gold may be worth Rs. 1, 50,000. The margin for gold set by MCX is 3.5%. So you only end up paying Rs 5,250. The low margin means that you can buy futures representing a large amount of gold by paying only a fraction of the price. So you bought the Gold Futures contract when it was Rs. 1, 50,000 per 100 Gms. The next day, the price of gold rose to Rs 1, 60,000 per 100 Gms. Rs 10,000 (Rs 1, 60,000 - Rs 1, 50,000) will be credited to your account. The following day, the price dips to Rs 1, 55,000. Rs 5000 will get debited from your account (Rs 1, 60,000 - Rs 1, 55,000).

Others
Fixed Deposits

Safest instrument to invest Fixed deposits are investment scheme where one can deposit his funds for a fixed period and earn a pre-determined interest rate. Basically they are common amongst average investors who are risk averse and prefer to invest in safe instruments. FDs are considered to be safe because they are subject to control of the Reserve Bank of India. In fact all bank deposits are reasonably safe because banks are subject to control of the RBI with regard to several policy and operational parameters. Interest income Fixed deposits earn higher interest rate in comparison to the savings bank account. Moreover the interest offered on a fixed deposit depends on the tenure for which the deposit is fixed by the investor. Usually if the maturity period of a deposit is longer, the interest earned on a FD
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is higher and vice-versa. Interest paid on a FD is either calculated a monthly basis or once a quarter according to the investor's choice. Effective return Normally a FD does not provide a regular interest income but a lump-sum amount on its maturity. Effective rate of return means that the interest earned during a year is not paid but reinvested further. It ensures one to earn higher interest as compared to the interest earned on yearly basis. Here the interest gets compounded over the period of investment.

GOLD

Gold has got lot of emotional value than monetary value in India. India is the largest consumer of gold in the world. In western countries, you can find most of their gold in their central banks. But in India, we use gold mainly as jewels. If you look at gold in a business sense, you will understand that gold is one of the all time best investment tool Demand for gold in the Indian Market: India has the highest demand for gold in the world and more than 90% of this gold is acquired in the form of jewellery. Following are the factors influencing the demand for gold. The movement of gold prices is one of the important variables determining demand for gold. The increase in the irrigation, technological change in agriculture (through mechanization and high yielding varieties), have generated large marketable surplus and a highly skewed rural income distribution is another factors contributing to additional demand for gold.

Supply of Gold: The main economic effects that arise from the changes in the supply of gold can be seen against the quantum of gold that is already in existence in the economy. The supply of gold is not up to the requirements as the production of gold is also coming down and demand for gold is going up very sharply.
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Bond

What is bond? Bond is a debt instrument issued by a company or a government. The buyer of the bond is in effect loaning money to the institution and is promised the full principal plus a fixed periodic payout during the tenure of the bond. The total payouts received together with the final principal will be put together in a computation to determine the yield on the bond. The yield, in layman's terms, is the effective interest rate earned on the bond for the entire duration. The different types of bond in India

Corporate Bond. Municipal Bond. Government and Agency Bond. Funding Bond. Mortgage Backed and Collateral Debt Obligation Bond.

GOVERNMENT SECURITIES (G-secs)

Government securities (G-secs) are supreme securities which are issued by the Reserve Bank of India on behalf of Government of India in lieu of the Central Government's market borrowing program. The term Government Securities includes: Central Government Securities. State Government Securities Treasury bills

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The Central Government borrows funds to finance its 'fiscal deficit'. The market borrowing of the Central Government is increased through the issue of dated securities and 364 days treasury bills either by auction or by floatation of loans. In addition to the above, treasury bills of 91 days are issued for managing the temporary cash mismatches of the Government. These do not form part of the borrowing program of the Central Government.

Features Issued at face value No default risk as the securities carry sovereign guarantee. Ample liquidity as the investor can sell the security in the secondary market Interest payment on a half yearly basis on face value No tax deducted at source Can be held in De-mat form. Redeemed at face value on maturity Maturity ranges from of 2-30 years.

Public Provident Fund

Public Provident Fund, popularly known as PPF, is a savings cum tax saving instrument. It also serves as a retirement planning tool for many of those who do not have any structured pension plan covering them. The balances in PPF account cannot be attached by any authority normally. How to Open Account Public Provident Fund account can be opened at designated post offices throughout the country and at designated branches of Public Sector Banks throughout the country.

Who can open Account? The account can be opened by an individual in his own name, on behalf of a minor of whom he is a guardian.
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Tabs on Investment Minimum deposit required in a PPF account is Rs. 500 in a financial year. Maximum deposit limit is Rs. 70,000 in a financial year. Maximum number of deposits is twelve in a financial year.

Maturity The maturity period of the account is 15 years. Rate of interest is 8% compounded annually. One deposit with a minimum amount of Rs.500/- is mandatory in each financial year. The amount of deposit can be varied to suit the convenience of the account holders. The account holder can retain the account after maturity for any period without making any further deposits. In this case the account will continue to earn interest at normal rate as admissible till the account is closed. The account holder also has an option to extend the PPF account for any period in a block of 5 years at each time, after the maturity period of 15 years.

Account Transfer The Account is transferable from one post Office / bank to another and from post Office to bank or from a bank to a post office.

Tax Benefits Deposits in PPF are eligible for rebate under section 80-C of Income Tax Act.The interest on deposits is totally tax free. Deposits are exempt from wealth tax.

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CHAPTER 9 DATA ANALYSIS & INTERPRETATION


Age: Table-1 Teenage Young Age Middle Age Old Age 0 50 48 2 Chart-1

Interpretation:From the above chart we can see that maximum of young age people invest their money in different instruments. And as well as Middle age people also show their interest in investment to secure their future as well as their family. Old age people are not taking that much risk to invest.

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Gender: Table-2
Male Female 93 7

Chart-2

Interpretation:From the above Pie chart we can see that most of the respondence are male and interested to invest their money in different instrument compared to the Female because they are the decision taker of the family. In Indian market most of the female are the housewife so they are not showing their interest in investment.

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Marital Status: Table-3


Single Married 65 35

Chart-3

Interpretation:From the above pie chart we can see that most of the single customers are taking interest in investment to earn profit and their future. Married customers are also taking interest but they are taking less risk to invest their money in different instrument. Here 65 customers are single they are ready to invest their money and 35 Married are also invest their money in different securities to secure their familys future.

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Occupation: Table-4
Service Business Professional Student Others 61 28 8 1 2

Chart-4

Interpretation:From the above Pie chart we can see that most of the service people are investing their money in different investment instrument. 61 customers who are doing service, 28 customers who are businessman, 8 Professional people, 1 customer is student, 2 customers are others. These data shows that how many customers are in different field and from that we collect the data about their investment power and their interest.

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Income (Annually):Table-5
Below 50,000 50,000-1,00,000 1,00,000-5,00,000 More than 5,00,000 18 28 49 5

Chart-5

Interpretation:From the above chart we can see that a person who has income of 1, 00,000-5, 00,000 are 49. 50,000-1,00,000 income people are 28 out of 100 and which shows their efficiency to invest their money in different investment instrument which is helpful to them in future and secure their money for their security of family.

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Since how many years have you been investing? Table-6


Less than 1 year 1-3 year 3-5 year 5 years & above 17 28 24 31

Chart-6

Interpretation:From the above data we can get the information about the interested people to invest their money in different instrument. 31 people out of 100 are invest their money for more than 5 years, 28 people invest 1-3 years , 24 people invest for 3-5 years, 17 people invest for less than 1 year. So it shows that the person are showing their interest in invest their money in different investment instruments.

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What are the various investment plans you invest in? *(Select all that are applicable) Table-7
Mutual Fund Commodities Equity Market Insurance Real Estate Deposits Others Total 27 13 44 63 21 37 8 213

Chart-7

Instrument
Mutual Fund Commodities Equity Market Insurance Real Estate Deposits

17%
10%

13% 6% 21%

33%

Interpretation:From the above chart we can see that 33% of the people are invest their money in insurance which shows that they are secure their family future which is unpredictable, 21% are invest in equity market to earn good amount of profit, 17% are invest in Deposits which is safest investment in India, 13% are invest in Mutual fund, 10% are invest in Real estate, 6% are invest in Commodities. Most of the investments are going in insurance which is required to secure the family future and it also gives returns as well.
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For how much period you would prefer to invest? Table-18


Short Term Long Term Depends on Finance Total 41 67 2 110

Chart-8

Interpretation:From the above chart we see that most of the customers are invest their money for long term and they take the benefit of the instrument and earn a profit from them. Here 61% of the customers are investing for long term, 37% of the customers are investing for Short Term, and 2% of the customers are investing their money with the finance available to them. So we can say that customers are interested to invest their money for long term.

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What is the purpose behind investment? Table-9


Returns Liquidity Wealth Tax Savings Total 54 08 21 23 106

Chart-9

Interpretation:From the above chart we can see the dependence of the customers for what they invest their money in difference instrument. Here we see that 51% of the investors are invest their money for good returns, 22% are invest for tax savings, 20% for wealth and, 7% for liquidity. So we can say that most of the investors are interested to make good returns and take the benefit of the investment and earn good profit.

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Through whom you invest into equity market? Table-10


Through online Through Relationship Manager Through Stock Broker Through Advisor Self Total 17 4 23 14 2 60

Chart-10

Interpretation:From the above information we can see which instrument equity investors use to trade in equity market. Here we can see that 39% of the investors invest their money through Stock Broker, 28% through online, 23% through advisors, 7% through Relationship Manager, and 3% through Themselves. So from these we can say that most of the investors invest their money in Equity Market through Stock Broker which is convenient to them.

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What percent of your salary/Income goes to savings in insurance, mutual funds & equity market? Table-11
10-20 % 21-30 % 31-40 % Above 40 % 73 21 4 2

Chart-11

Interpretation:From the above chart we can see the % of salary a customer saving in different investment. Here we see that most of the investors invest their salaries 10-20 % .Here 73 investors are invest 10-20% in different investment instrument, 21 are invest 2130% from their salary, 4 are invest 31-40% from their salary, and 2 are invest 40% or more from their salary. So from all we can say that most of the investors invest 1020% of their salary in different investment instrument.

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Do you invest directly into equity? Table-12


Yes No 30 14

Chart-12

Interpretation:In above chart we can see the investors investment criteria regarding investment in Equity market. They are investing their money directly or not. Here 68% of the investors invest directly to the Equity market Where as 32% of the investors are not invest directly in the equity market.

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In what kind of stocks do you trade or invest in? Table-13


Large Caps Mid Caps Small Caps Depends Total 14 13 10 18 55

Chart-13

Interpretation:In the above chart we can see that in which kind of stock the equity investors invest. There is different option as per different customers. Here we see that 33% of the investors are investment depends on their requirement, 25% of the investors invest in Large Caps, 24% of the investors invest in Mid Caps, and 18% of the investors invest in Small caps. So we can say that the investors not take chance to lose their money so they invest as per market condition or they depend on their thinking in which kind of stock they invest.
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Cross Tabulation with Income, Age, Occupation


WITH INCOME Step 1. H0: Kind of stocks is independent of Income. Ha: Kind of Stocks is Dependent of Income. Step 2. The appropriate statistical test is

Step 3. Step 4.

= .05.
R = 4, c = 4 (4-1) (4-1) = 9

0.05,9 = 16.9190
Step 5.
Income below 50000 50,000-1,00,00 1,00,000-5,00,000 More than 5,00,000 Total

Observed Data are as follow:


Large caps 2 3 8 1 14 Mid Caps 0 5 6 0 11 Small Caps 1 2 6 0 9 Depends 2 6 12 1 21 Total 5 16 32 2 55

Step 6.

= 4.31994
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Step 7.

The Observed value of Chi-square, 4.31994, is less than the critical value of Chisquare, 16.9190. So the null hypothesis that is kind of stocks preferred is independent
on Income and null hypothesis is accepted.

WITH AGE Step 1. H0: Kind of stocks is independent of Age. Ha: Kind of Stocks is Dependent of Age. Step 2. The appropriate statistical test is

Step 3. Step 4.

= .05.
R = 4, c = 4 (4-1) (4-1) = 9

0.05,9 = 16.9190
Step 5.
Age

Observed Data are as follow:


Large caps 0 6 8 0 14 Mid Caps 0 6 5 0 11 Small Caps 0 3 6 0 9 Depends 0 5 15 1 21 Total 0 20 34 1 55

Teenage Young Age Middle Age Old Age


Total

Step 6.

= 4.588235
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Step 7.

The Observed value of Chi-square, 4.588235, is less than the critical value of Chisquare, 16.9190. So the null hypothesis that is kind of stocks preferred is independent
on age and null hypothesis is accepted.

WITH OCCUPATION Step 1. H0: Kind of stocks is independent of Occupation. Ha: Kind of Stocks is Dependent of Occupation. Step 2. The appropriate statistical test is

Step 3. Step 4.

= .05.
R = 4, c = 5 (4-1) (5-1) = 12

0.05,12 = 21.0261
Step 5. Observed Data are as follow:
Large caps 9 4 1 0 0 14 Mid Caps 10 1 0 0 0 11 Small Caps 9 0 0 0 0 9 Depends 9 7 4 0 1 21 Total 37 12 5 0 1 55

Occupation Service Business Professional Student Others Total

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Step 6. Step 7.

= 14.36079
The Observed value of Chi-square, 14.36079, is less than the critical value of Chisquare, 21.0261. So the null hypothesis that is kind of stocks preferred is independent
on Occupation and null hypothesis is accepted.

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If you are an Investor what induces you to invest in a intraday trading? (Mark all that applies) Table-14
Tips News Research Report Personal Homework Delivery Total 19 10 80 18 3 58

Chart-14

Interpretation:The above chart show about the inducement of the investors to invest in Intraday Trading. Here we see that 61% of the investors invest their money with the help of reading research report, 15% are invest with the help of Tips from the various companies, friends, etc; 14% are invest with the help of personal homework, 8% are invest with the help of News, and 2 % do the delivery. So all over we can say that the most of the investors invest with the help of research report.

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Cross Tabulation with Income, Age, Occupation


WITH INCOME Step 1. H0: Induces to invest in intraday trading is independent of Income. Ha: Induces to invest in intraday trading is Dependent of Income. Step 2. The appropriate statistical test is

Step 3. Step 4.

= .05.
R = 4, c = 4 (4-1) (4-1) = 9

0.05,9 = 16.9190
Step 5. Observed Data are as follow:
Research Report 1 1 6 0 8

INCOME below 50000 50,000-1,00,00 1,00,000-5,00,000 More than 5,00,000 Total

Tips 3 6 11 0 20

News 0 4 6 0 10

Personal Hw 0 6 11 0 17

TOTAL 4 17 34 0 55

Step 6.

= 5.56542

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Step 7.

The Observed value of Chi-square, 5.56542, is less than the critical value of Chisquare, 16.9190. So the null hypothesis that is Induces to invest in intraday trading
is independent on Income and null hypothesis is accepted.

WITH AGE Step 1. H0: Induces to invest in intraday trading is independent of Age. Ha: Induces to invest in intraday trading is Dependent of Age. Step 2. The appropriate statistical test is

Step 3. Step 4.

= .05.
R = 4, c = 4 (4-1) (4-1) = 9

0.05,9 = 16.9190
Step 5.
Age

Observed Data are as follow:


Large caps 0 6 8 0 14 Mid Caps 0 6 5 0 11 Small Caps 0 3 6 0 9 Depends 0 5 15 1 21 Total 0 20 34 1 55

Teenage Younge Age Middle Age Old Age


Total

Step 6.

= 5.210708
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Step 7.

The Observed value of Chi-square, 5.210708, is less than the critical value of Chisquare, 16.9190. So the null hypothesis that is Induces to invest in intraday trading
is independent on age and null hypothesis is accepted.

WITH OCCUPATION Step 1. H0: Induces to invest in intraday trading is independent of Occupation. Ha: Induces to invest in intraday trading is Dependent of Occupation. Step 2. The appropriate statistical test is

Step 3. Step 4.

= .05.
R = 4, c = 5 (4-1) (5-1) = 12

0.05,12 = 21.0261
Step 5. Observed Data are as follow:
Research Report 5 2 1 0 0 8 Personal Hw 13 3 1 0 0 17

OCCUPATION Service Business Professional Student Others Total

Tips 14 5 1 0 0 20

News 5 4 0 0 1 10

TOTAL 37 14 3 0 1 55

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Step 6. Step 7.

= 14.36079
The Observed value of Chi-square, 14.36079, is less than the critical value of Chisquare, 21.0261. So the null hypothesis that is Induces to invest in intraday trading
is independent on Occupation and null hypothesis is accepted.

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What is your pattern of investing or trading? Table-1 5


Repeatedly invest or trade in same set of stocks Invest or trade in variety of stocks Depends on other factors Total 11 16 25 52

Chart-15

Interpretation:In the above chart we can see the pattern of investment. Here there are 2 different patterns. Here 48% of the investors depend on the factors & they use pattern as per that dependence, 31% of the investors invest or trade in variety of stocks, 21% of the investors repeatedly invest or trade in same set of stocks. So we can say that the most of the investors depends on the factors then they decide pattern as per that.

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What kind of investing or trading do you adopt? Table-16


High Risk - High Return Low Risk - High Return Low Risk - Low Return Safe Investments Total 15 21 5 12 53

Chart-16

Interpretation:In the above chart we can see that in which kind of investing or trading they adopt. Here 40% of the investors are invest their money with low risk-high return basis, 28% of the investors are invest their money with High risk-High return basis, 23% of the investors are Safe investors, 9% of the investors are low risk-low return investors. So we can say that the 40 % are the investors who want high return with low risk.

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Cross Tabulation with Income, Age, Occupation


WITH INCOME Step 1. H0: kind of investing or trading is independent of Income. Ha: kind of investing or trading is Dependent of Income. Step 2. The appropriate statistical test is

Step 3. Step 4.

=.05.
R = 4, c = 4 (4-1) (4-1) = 9

0.05,9 = 16.9190
Step 5. Observed Data are as follow:
High Risk High Return 0 2 12 0 14 Low Risk High Return 4 5 7 2 18 Low Risk Low Return 0 4 2 0 6 Safe Investments 1 3 7 0 11 Total

Income below 50000 50,000-1,00,00 1,00,000-5,00,000 More than 5,00,000 Total

5 14 28 2 49

Step 6.

= 15.83056

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Step 7.

The Observed value of Chi-square, 15.83056, is less than the critical value of Chisquare, 16.9190. So the null hypothesis that is kind of investing or trading is
independent on Income and null hypothesis is accepted.

WITH AGE Step 1. H0: kind of investing or trading is independent of Age. Ha: kind of investing or trading is Dependent of Age. Step 2. The appropriate statistical test is

Step 3. Step 4.

=.05.
R = 4, c = 4 (4-1) (4-1) = 9

0.05,9 = 16.9190
Step 5. Observed Data are as follow: High Risk High Return 0 6 8 0 14 Low Risk High Return 0 5 13 1 19 Low Risk Low Return 0 2 3 0 5 Safe Investments 0 5 6 0 11 Total

AGE Teenage Young Age Middle Age Old Age Total

0 18 30 1 49

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Step 6. Step 7.

= 2.805657
The Observed value of Chi-square, 2.805657, is less than the critical value of Chisquare, 16.9190. So the null hypothesis that is kind of investing or trading is
independent on age and null hypothesis is accepted.

WITH OCCUPATION Step 1. H0: kind of investing or trading is independent of Occupation. Ha: kind of investing or trading is Dependent of Occupation. Step 2. The appropriate statistical test is

Step 3. Step 4.

= .05.
R = 4, c = 5 (4-1) (5-1) = 12

0.05,12 = 21.0261

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Step 5.

Observed Data are as follow:


High Risk High Return Low Risk - High Return 12 5 2 0 0 19 Low Risk - Low Return Safe Investments Total

OCCUPATION Service Business Professional Student Others Total 8 4 1 0 1 6

4 1 0 0 0 5

7 2 2 0 0 11

31 12 5 0 1 49

Step 6. Step 7.

= 17.92897
The Observed value of Chi-square, 17.92897, is less than the critical value of Chisquare, 21.0261. So the null hypothesis that is kind of investing or trading is
independent on Occupation and null hypothesis is accepted.

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If you are an Investor what induces you to stay invested in a particular Stock? (Mark all that applies) Table-17
Dividend Paying Organic Growth Inorganic Growth Future Prospects Total 16 8 2 29 55

Chart-17

Interpretation:In above chart we can see that what induces the investors to stay in investment. Here 53% of the investors are invest because of future prospects, 29% are Invest because of good dividend paying by the companies, 14% are invest because of organic growth, 4% are invest in Inorganic growth. So we can say that the maximum number of investors invest because of securing their future.

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The reason for your investment in Mutual Funds is (Select all that are applicable) Table-18
For family Returns Tax Savings Pension Liquidity Others Total 12 17 9 4 3 0 45

Chart-18

Interpretation:In above chart we see the reasons for invest in Mutual Fund. As investors are invest their money for different reasons. Here 38% of the investors are invest their money in mutual fund for good returns, 27% of the investors are invest for secure their family future, 20% are invest for Tax savings, 9% are invest for pension plan, 6% are invest for Liquidity. So from these we can say that most of the investors invest because of good return as well as for securing their future of the family.
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The reason for your investment in insurance is (Select all that are applicable) Table-19
For family Returns Tax Savings Pension Liquidity Others Total 50 16 17 02 05 01 91

Chart-19

Interpretation:In above chart we see the reason for invest in Insurance. Here 55% of the investors invest in insurance for the purpose of their family security and their safety future, 18% of the investors invest for returns, 19% of the investors invest for tax savings, 5% for the Liquidity, 2% for the pension, 1% for the others. So here we can say that most of the investors invest in insurance because of their family, their security, and their future.
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Who Influences you the most to invest in a particular option? Table-20


Family Friends Relatives Newspapers/ Magazine Brokers Self Total 51 29 09 12 19 09 129

Chart-20

Interpretation:In the above chart we can see which induces the investors to invest in particular investment instrument. Here 40% of the investors induce by the family, 22% of the investors induce by friends, 15% induce by Brokers, 9% induce by

newspaper/Magazines, 7% induce by self and relatives. So we can say that most of the investors are induced by their family because they invest for them and they want to secure their family future and life style.
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Rate your awareness with respect to different investment Plans Table-21


Mutual Fund Insurance Equity Funds Commodities Real Estate Not Aware 35 15 38 62 39 Little Aware 37 23 27 27 36 Fully Aware 28 62 35 11 25

Chart-21

Interpretation:In the above chart we see the awareness of the investors about different investment instrument. Here we have given different investment and some customers are aware about that instrument or some are not aware. Here we see the instrument like mutual fund, Insurance, Equity fund, Commodities, Real estate. In mutual fund 35 are not aware, 37 little aware, 28 are fully aware. In Insurance 15 are not aware, 23 little aware, 62 are fully aware. In Equity fund 38 are not aware, 27 little aware, 35 are fully aware. In commodities 62 are not aware, 27 little aware, 11 are fully aware. In Real Estate 39 are not aware, 36 little aware, 25 are fully aware. So from overall we can say that most of the investors aware about insurance.
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Rate the Equity plans with respect to the qualities *1 Being Lowest & 5 Being Highest
HYPOTHESIS

Step 1.

Returns
H0: > 3 Ha: 3

Step 2.

The appropriate statistical test is

Step 3. Step 4.

= 0.05
Z=0.5000-0.0500 = 0.4500 Z= -1.645

Step 5.

Data x = 3.909091, = 3,

= 0.174537, n = 44

Step 6. Step 7.

Z = 5.208584 Accept the null hypothesis. The calculated value (5.208584) is more than tabulated value (-1.645) so null hypothesis is accepted.

Step 1.

Risk
H0: > 3 Ha: 3
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Step 2.

The appropriate statistical test is

Step 3. Step 4.

= 0.05
Z=0.5000-0.0500 = 0.4500 Z= -1.645

Step 5.

Data x = 2.704545, = 3,

= 0.226611, n = 44

Step 6. Step 7.

Z = -1.3038 Accept the null hypothesis. The calculated value (-1.3038) is more than tabulated value (-1.645) so null hypothesis is rejected.

Step 1.

Tax Saving
H0: > 3 Ha: 3

Step 2.

The appropriate statistical test is

Step 3. Step 4.

= 0.05
Z=0.5000-0.0500 = 0.4500 Z= -1.645
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Step 5.

Data x = 3.113636, = 3,

= 0.200991, n = 44

Step 6. Step 7.

Z = 0.56538 Accept the null hypothesis. The calculated value (0.56538) is more than tabulated value (-1.645) so null hypothesis is accepted.

Step 1.

Accessibility
H0: > 3 Ha: 3

Step 2.

The appropriate statistical test is

Step 3. Step 4.

= 0.05
Z=0.5000-0.0500 = 0.4500 Z= -1.645

Step 5.

Data x = 2.954545, = 3,

= 0.155772, n = 44

Step 6. Step 7.

Z = -0.2918 Accept the null hypothesis. The calculated value (-0.2918) is more than tabulated value (-1.645) so null hypothesis is Accepted.

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Step 1.

Brand Equity
H0: > 3 Ha: 3

Step 2.

The appropriate statistical test is

Step 3. Step 4.

= 0.05
Z=0.5000-0.0500 = 0.4500 Z= -1.645

Step 5.

Data x = 3.3636, = 3,

= 0.169226, n = 44

Step 6. Step 7.

Z = 2.148825 Accept the null hypothesis. The calculated value (2.148825) is more than tabulated value (-1.645) so null hypothesis is accepted.

Post sales Service

Step 1.

H0: > 3 Ha: 3

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Step 2.

The appropriate statistical test is

Step 3. Step 4.

= 0.05
Z=0.5000-0.0500 = 0.4500 Z= -1.645

Step 5.

Data x = 3.113636, = 3,

= 0.200991, n = 44

Step 6. Step 7.

Z = 0.56538 Accept the null hypothesis. The calculated value (0.56538) is more than tabulated value (-1.645) so null hypothesis is accepted.

LDRP Institute of Technology & Research, Gandhinagar 70

Rate the commodities plans with respect to the qualities (*1 Being Lowest & 5 Being Highest)

HYPOTHESIS

Step 1.

Returns
H0: > 3 Ha: 3

Step 2.

The appropriate statistical test is

Step 3. Step 4.

= 0.05
Z=0.5000-0.0500 =0.4500 Z= -1.645

Step 5.

Data x = 3.4615, = 3,

= 0.351104, n = 13

Step 6. Step 7.

Z = 1.314534 Accept the null hypothesis. The calculated value (1.314534) is more than tabulated value (-1.645) so null hypothesis is accepted.

Risk
H0: > 3 Ha: 3
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Step 1.

Step 2.

The appropriate statistical test is

Step 3. Step 4.

= 0.05
Z=0.5000-0.0500 = 0.4500 Z= -1.645

Step 5.

Data as above x = 2.6923, = 3,

= 0.398468, n = 13

Step 6. Step 7.

Z = -0.77219 Accept the null hypothesis. The calculated value ( -0.77219) is more than tabulated value (-1.645) so null hypothesis is Accepted.

Step 1.

Tax Saving
H0: > 3 Ha: 3

Step 2.

The appropriate statistical test is

Step 3.

= 0.05

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Step 4.

Z=0.5000-0.0500 = 0.4500 Z= -1.645

Step 5.

Data x = 3.1538, = 3,

= 0.273771, n = 13

Step 6. Step 7.

Z = 0.561951. Accept the null hypothesis. The calculated value (0.561951) is more than tabulated value (-1.645) so null hypothesis is accepted.

Step 1.

Accessibility
H0: > 3 Ha: 3

Step 2.

The appropriate statistical test is

Step 3. Step 4.

= 0.05
Z=0.5000-0.0500 = 0.4500 Z= -1.645

Step 5.

Data x = 2.8462, = 3,

= 0.191021, n = 13

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Step 6. Step 7.

Z = -0.80539 Reject the null hypothesis. The calculated value (-0.80539) is more than tabulated value (-1.645) so null hypothesis is Rejected.

Step 1.

Brand Equity
H0: > 3 Ha: 3

Step 2.

The appropriate statistical test is

Step 3. Step 4.

= 0.05
Z=0.5000-0.0500 = 0.4500 Z= -1.645

Step 5.

Data x = 3.4615, = 3,

= 0.351104, n = 13

Step 6. Step 7.

Z = 1.314534 Accept the null hypothesis. The calculated value (1.314534) is more than tabulated value (-1.645) so null hypothesis is accepted.

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Step 1.

Post sales Service


H0: > 3 Ha: 3

Step 2.

The appropriate statistical test is

Step 3. Step 4.

= 0.05
Z=0.5000-0.0500 = 0.4500 Z= -1.645

Step 5.

Data x = 3.2308, = 3,

= 0.25705, n = 44

Step 6. Step 7.

Z = 0.897758 Accept the null hypothesis. The calculated value (0.897758) is more than tabulated value (-1.645) so null hypothesis is accepted.

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CHAPTER 10 Findings & suggestions


From the all above data and interpretation we find some of the point which is explains here. (1) From the above all data we find difficulty about the customers hesitance to give their personal detail like contact number, their address and their salary. (2) We find that most of the customers are invest their money in different instrument they are not fixed to any one instrument. (3) Most of the customers are not aware about some instrument which is new to them. (4) Many of the investors invest their money for their family security so they invest their money in insurance, Government securities like Deposits etc. (5) In above data 44 respondence out of 100 are invest their money in Equity market to earn profit but that investors are invest with low risk-high return basis. (6) The Equity investors are investing their money with the help of stock broker which is safe because they have expert in their field. (7) From the given hypothesis of equity most of the customers are give more preference to high return, Tax saving, aware about brand equity, and also satisfied with Post sales service. (8) In above data very less investors have knowledge about the commodity market & investors are also less because of the less awareness. (9) The above explained equity and commodity hypothesis most of the customer given less preference to the risk and accessibility because they believe that they want to take less risk and accessibility not done easily. (10) In commodity hypothesis also the customers prefer high returns, they also believe that tax saving is done to invest, aware about the brand equity, and also they are satisfied with the companies post sales services.

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Suggestions to the company


There are some suggestions to the company which I found at the time of my SIP project. 1. The customers are less aware about the company so company has to increase more awareness about the product and services of the company. 2. The Ahmedabad branch infrastructure is small so company has to develop its infrastructure.

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CHAPTER 11 Contribution from the Study


For student From this Report student will come to know that how is behavior of investors regarding investment and what kind of investment instruments are available in market. From this research student will come to know that which investment avenue is better than other to invest. Student will get knowledge about financial market, how it works and what kind of risk involved in particular financial investment instrument.

For researcher From this report researcher can study the statistical data providing in this report and they can make solution. Researcher will come to know that how age and income affect to investors while they invest. Researcher will get to know that risk and time is the important aspect for the investment decision. Researcher will get which instrument gives maximum return and what kind of risk involves in this. For company From this report company will get to know that the target costumer of the company and how costumer behaves while making investment. From this report company will come to know that costumers what exactly want from investment. From this report company will get that return is not only need of the investors but services and proper guidance also important for the investors.

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From the report Company will come to know that investors invest savings in different types of instrument to secure future so it is necessary for the company to make available right instrument for the investors.

Company will get that liquidity and profitability are the factors which attract customers to invest so it is companys responsib ility to make sure that investors fund should park into right direction.

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CHAPTER 12 Learning
I have called many people in telecalling which is my first time experience. trading.

I have learned and used companies Software like ODIN, NEST which is used for the

I have Learn new term from the company and from my SIP training. I have also learned about the offer provide for franchisee and what are their terms and condition for franchisee. I also learned about the Mutual Fund & Life Insurance which is important tools in Investment. I also learned that how the equity and commodity market works and which are the factors affecting to them.

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CHAPTER 13 Limitations:
This analysis is based upon investors behavior for investment preferenc es during normal time. This analysis would be focusing on the information from the investors about their knowledge, perception and behavior on different financial products. (1) The population is too large so it is very complicated to comprehensive study. (2) The total number of financial instruments in the market is so large that it needs a lot of resources to analyze them all. There are various companies providing these financial instruments to the public. Handling and analyzing such a varied and diversified data needs a lot of time and resources. (3) It is not necessary that all the people make investment in same kinds of investments vehicles; they choose different kinds of investment product. (4) Secondary data might be old and few rules and regulation modifications are keep on improving. (5) As the analysis is based on primary as well as secondary data, possibility of unauthorized information cannot be avoided. (6) The lack of knowledge of customers about the financial instruments can be a major limitation. (7) The information can be biased due to use of questionnaire.

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CHAPTER 14 Conclusion
From the all above information I conclude here that most of the customers are invest their money in insurance because it secure the investors family future as well as it gives good returns in future. The individual investor still prefers to invest in financial products which give risk free returns. This confirms that investors even if they are of high income, well educated, salaried, independent are conservative investors prefer to play safe.

Equity market investors are investing in Equity to earn a good profit only. Some of the investors are invest in Real Estate which is very growing field in the market & which gives good return in future. The investors which do not want to take any risk invest their money in deposits which is the safest investment in market. Most of the customers not aware about the commodity market. Some investors are there who invest their money to save tax. Mutual Fund is good option for investors who want to save their tax and safe their money. Equity is good for the investors who want to take high risk and high returns.

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CHAPTER 15 BIBLIOGRAPHY
Books: The Mindful Investor, by Maria Gonzalez and Graham Bayron. Security Analysis and Portfolio Management by Punithavathi Pandian.

Reference Books: Black Ken, Business Statistics, Wiley India Edition, Chap-9 (pg no. 288-328), Chap12 (pg no. 468-470) (4th edition). Donald R. Cooper, Pamela S. Schindler, Research Methods, 8 th Edition, Tata McGraw Hill, Chap-7 Sampling Design (pg no. 198-203), Chap-17 Hypothesis Testing (536538).

Web Sites: www.propertiesproperty.com/articles.html http://www.indiainfoline.com/Aboutus/ http://www.angelbroking.com/About_Us/company.aspx http://www.indiabulls.com/securities/home/aboutindiabulls.htm http://www.kotaksecurities.com/aboutus/index.html http://www.motilaloswal.com/About_Us/ www.Indiamoney.com http://www.bmawc.com/AboutUs/AboutUs http://www.bmawc.com/AboutUs/ManagementTeam http://www.bmawc.com/AboutUs/MissionVision http://www.businessworld.in/businessworld/businessworld/bw/Finance_Personal_Finance

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CHAPTER 16 APPENDIX Personal Information


Name:-___________________________________________________ Age: Teenage Young age Middle age Old age Gender: Male Female Marital Status: Single Married

Mobile no:-___________________________ Occupation: Service Business Professional Student Others Income (Annually): below 50,000 50,000 1, 00,000 1, 00,000 5, 00,000 More than 5, 00,000 Address: - _______________________________________

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1. Since how many years have you been investing? Less than 1 year 1 3 year 3 5 year 5 years and more 2. What are the various investment plans you invest in? *(Select all that are applicable) Mutual Funds Commodities Equity market Insurance Real Estate Deposits Others -__________________________________________ 3. For how much period you would prefer to invest? a) Short term b) long term 4. What is the purpose behind investment? a) Returns b) liquidity c) wealth d) tax savings 5. Through whom you invest into equity market? ( ) Through online ( ) Through Relationship Manager ( ) Through Stock Broker ( ) Through Advisor 6. What percent of your salary/Income goes to savings in insurance, mutual funds & equity market? 10-20 % 21-30 % 31-40 % Above 40 % 7. Do you invest directly into equity? ( ) Yes ( ) No 8. In what kind of stocks do you trade or invest in? Large Caps Mid Caps Small Caps Depends

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9. If you are an Investor what induces you to invest in a intraday trading? (Mark all that applies) Tips News Research Report Personal Homework 10. What is your pattern of investing or trading? repeatedly invest or trade in same set of stocks Invest or trade in variety of stocks Depends on other factors 11. What kind of investing or trading do you adopt? High Risk - High Return Low Risk - High Return Low Risk - Low Return Safe Investments 12. If you are an Investor what induces you to stay invested in a particular Stock? (Mark all that applies) Dividend Paying Organic Growth Inorganic Growth Future Prospects 13. The reason for your investment in Mutual Funds is (Select all that are applicable) For family Returns Tax Savings Pension Liquidity Others____________________________________________ 14. The reason for your investment in insurance is (Select all that are applicable) For family Returns Tax Savings Pension Liquidity Others______________________________________

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15. Who Influences you the most to invest in a particular option? Family Friends Relatives Newspapers/ Magazine Brokers 16. Rate your awareness with respect to different investment Plans Not Aware Mutual Fund Insurance Equity Funds Commodities Real Estate Little Aware Fully Aware

17. Rate the Equity plans with respect to the qualities *1 Being Lowest & 5 Being Highest 1 Returns Risk Tax Savings Accessibility Brand Equity Post Sales Service 2 3 4 5

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18. Rate the commodities plans with respect to the qualities *1 Being Lowest & 5 Being Highest 1 Returns Risk Tax Savings Accessibility Brand Equity Post Sales Service 2 3 4 5

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