Professional Documents
Culture Documents
broking Ltd.
Abstract:
The main aim of this study is to identify the investors perception towards stock market. The
size of the sample is 50 and the survey is done in Moradabad city only. The focus of the study
is to know the selection of the stocks and company, risk bare by investors, return perception
through stock market and to know the purpose to invest in stock market are. Various
statistical tools were used with help of MS-excel to describe the factors. Suggestion given in
the end will help the brokers and investors to play a safe game in the stock market.
Key words: Investors, stock, stock market & brokers.
9027439960
rajatpawan@gmail.com
TMU, Moradabad.
Introduction:
Capital market could be define as market which deals in medium and long term funds. It is
the borrowing, borrowed by company for medium and long term funds and provide facilities
for marketing and trading of securities. Supply and demand of the stocks in stock market is
affected by various factors. Investment decisions are quite complex as there are many factors
to be consider to select stock to invest in or trade into these factors act as core drivers for
investment decisions. Most of the investors fear of investing their money in stock market
because its the most volatile market, and unable to predict the future. Even after identifying
the blue-chip Company and securities, the trading practice are also complicated, making it a
difficult task for investors to trade in exchange and follow up on post trading formalities. So
it is very important to the investors and brokers who are new to market, the investment
decisions are influenced by few factors like share price, dividend announcement, growth
trend, companys reputation, current economic conditions and other advices given by
professionals.
Review of Literature:
Meenu Verma(2008) The author has observed that demographic profile and investor
personality can be the two determinants for making perception about the investor psychology.
The study revealed that real estate, followed by mutual funds are the most preferred choices
for investment among the investors. It was noted males prefer real estate, PPF and equity
shares as attractive avenues for investment, females prefer bank FD, insurance and bullions.
Abhijeet Chandra (2009) In this literature, the author has analyzed the impact of
competence of individual investors on their trading behavior in the stock market. Individual
investors take trading decisions based on their self-perceived competence that is influenced
by several factors. The study examined the factors that determine the competence level of
individual investors. Age, education, and income were found to be the most influencing
factors of the individual investors' competence in the stock market activities and trading
behavior.
Bodla, (2009) The author in his study observes that the individuals may be equal in all
aspects, but their financial planning needs are very different. It was studied that the modern
investor is a mature and adequately groomed person. The individual investors prefer less
risky investments. Blind investments are scarce, as a majority of investors are found to be
using some source and reference groups for taking decisions. Brokers who are in direct touch
with investors play a vital role in keeping the capital market lively by providing various
services to investors.
Objective:
To analyze investors perception towards the Indian stock market.
To know the preferred sector to invest in stock market.
Research Methodology:
Type
of
Research
Design
Source of Data
Research Equipment
Questionnaire
Sampling Technique
Non-Probability
Sampling Method.)
Sample Size
80 Samples
Area of Research
Moradabad
Technique
(Convenience
Analysis:
1. What percentage of income do you save?
11%
35%
Less than 10%
10%
11-20%
30%
0-10%
11-30%
6%
23%
31-50%
Above 50%
41%
Saving
23%
Liquidity
16%
Capital appreciation
15%
46%
dividend
25%
39%
Long term (More than 1 year)
20%
0-10%
10-25%
48%
33%
Above 25%
9%
31%
Very Poor
Poor
Average
12%
Good
26%
Very Poor
22%
7. Your general perception about the stock market on basis of Risk factor.
9%
19%
Very Poor
26%
Poor
15%
Average
Good
31%
Very Good
8. Your general perception about the stock market on basis of Savings point of view.
20%
Very Poor
26%
Poor
8%
13%
Average 34%
Good
Very Good
10%
26%
TV channels, Newspapers or Internet
Self- Analysis
38%
21%
Financial consultant
Automobile
8%
11%
13%
FMCG
10%
Cement
Banking
IT
Steel
6%
13%
9%
8%
Construction
Retail
14%
Infrastructure
41%
Yes
59%
No
22%
False information / rumors
High
24%brokerage
12%
Lack of funds
18%
Being
cheated by the brokers
24%
Findings:
Most of investor are from the age group of 36-40 because this age group want
to earn more so that they can fulfill the requirements of their family.
Most of investors save 11-20% part of their income because there is inflation
in the market it is difficult to survive in lower income.
Most of the investor invest their saving from 31 to 50% in stock market
because everyone want to play a safe game.
Most of the investor invest their money for capital appreciation and the least
for liquidity of their saving because they can invest in other assets for
liquidity.
Most of the investor prefer time period from 6 months to 1 year because they
evaluate their share value appreciation on the annual basis and change their
investment.
Most of investor dont want to bear risk they only prefer to bear risk from 10
to 25% on their investment.
Most of investor think that stock market gives the average return on their
investment because in stock fluctuate more quickly.
Most of the investor think there is average risk in investing in the stock market
because market gives return as well as loss on investment and fluctuates more
quickly.
Stock market can give return as well as investor have to bear loss on their
investment so they think that it has the average on the basis of saving.
Most of the investor invest on the advice of TV channels, Newspapers or
Internet because in recent years
Most of the investors, invest in oil & gas type of companies because these are
in conventional type of business and give good returns.
Conclusion:
Running a successful stock brokerage firm requires complete understanding of the
peculiarities of the Indian Stock Market and also the psyche of the small investors
Brand plays important role for the investment. People invest in those Companies
where they have faith or they are well known with them.
Many difficulties are faced by investor while investing in Stock Market such as false
information / rumors, high brokerage, lack of funds, being cheated by the brokers,
lack of knowledge about the market etc.
Limitations:
This research reflects on individual customer in Moradabad only. So findings and
suggestions given on the basis of this research cannot be extrapolated to the entire
population.
Sample size is 100 which is very small that is not enough to study the awareness of
Suggestions:
There should be latest and easy availability of information to the public. Investors
Bibliography:
www.nseindia.com
www.investopedia.com
http://www.ijmra.us
Meenu Verma (2008), Wealth Management and Behavioral Finance: The Effect of
Demographics and Personality on Investment Choice among Indian Investors, The