A PROJECT REPORT

ON

"STOCK MARKET THE PROCESS MAKING MONEY"

In
Partial Fulfillment For The Award Of The Degree Of Master Of Business
Administration

Under the Supervision

of

Mr. RAHUL MISHRA

Operation Manager

BY
SAMAR OBAID
Roll No. 00000000000000000
IIIrd Sem

UNIVERSITY OF LUCKNOW, IMS LUCKNOW

 DECLARATION

I SAMAR OBAID, Roll No. 0000000000000 hereby declare that the summer training

project report Topic "Stock Market the process making money" submitted by me in partial

fulfillment for the award of the MBA degree from University of Lucknow, IMS Lucknow is an

outcome of my own efforts and is an original piece of research work.

It contains nonmaterial previously published or written by any other person, nor any

material which to a substantial extent has been accepted for the award of any other

degree/diploma of any other Institute/University, except where due acknowledgement has been

made in the text.

SAMAR OBAID
 ACKNOWLEDGEMENT

I am iondebted to my project guide Mr. RAHUL MISHRA (Operational Manager) who gave

me guidance, encouragement and inspiration throughout the project. I am very grateful to him for

his support that enabled me to enahcne my knowledge and helped to draft the report. I also

express my sincere thanks to Mr. Rahul Mishra (Operation Manager) for helping me and

guiding me in completing my project.

All in all, it was the pleasant learning experience for me in Reliance Security. thanks to all

seniors and staff for making it so memorable. It was their encouragement that support and co-

operation, which made me, give some meaning to my project.

SAMAR OBAID
Roll No-00000000000
 PREFACE

Today India has become a “globalize country”. The process of globalization has very highly

affected. Corporate world of both, India and exotic corporate world means today’s neoteric

business world. This corporate world plays a decisive role in globalization.

This corporate world is now becoming more and more competitive. Regarding this

competition business houses need more professionalized people for their managerial work.

Highly professionalized people come from business school. Business school offers training for

all business aspects. So from this angle our Institute of Management Sciences, University of

Lucknow.

Theoretical knowledge is not enough. After study student has to go practical world. At

that time they have difficulty in practical works. This MBA program provides an opportunity for

this type of practical knowledge.

The rationale behind visiting the company and preparing the Project Report is to study the

INVESTOR INVESTMENT BEHAVIOR IN STOCK MARKET&SUGGESTING GOOD

INVESTMENT STRATEGY
 EXECUTIVE SUMMARY

For preparing the project report, I have visited the Reliance Security for 21 days
during the suggested duration from 27-10 2008 to 16-11-2008, to avail the
necessary information. I have filled up the questionnaire with the customers of
Reliance Security. The blend of learning and knowledge acquired during my
practical studies at the company is presented in this project report.

The project report starts with the research objectives, basic information regarding
the research approach, the sample size for my research is 60 and
I have used simple random sampling method for my research and the sources for
data collection is both primary sources and secondary sources., after this I have
shown the data analysis of each question and for analysis I have used percentile
method and at last I have written findings and some of the limitations which I have
faced during my research work.

I hope that the information incorporated in this project report would be appreciated
as I have put in may be efforts in leaving no stone unturned as I consider it to be
true, fair and relevant in its content and context to the best of my knowledge and
ability.
 INDEX

Sr. Particulars Page no.

1 Preface 2
2 Acknowledgement 3
3 Executive summary 4
4 Introduction about the company 6
5 Research Objectives 13
6 Research Methodology 14
7 Data analysis 15
8 Findings 30
9 Limitations 31
10 Conclusion 32
11 Bibliography 33
12 Annexure 34
  INTRODUCTION ABOUT THE COMPANY

Reliance Securities

Type Public

Founded 2005

Headquarters Mumbai, India

Area served India

Key people B. Gopkumar, Chief Executive

Officer

Products Equity Broking

Number of 900
employees

Website www.reliancesmartmoney.com
Reliance Securities is a broking arm of Reliance Capital.[1] It is one of India’s
largest retail broking houses with over 7 lakh customers and a pan-India presence at more than
1700 locations.[2] The company is a corporate member of both the Bombay Stock
Exchange(BSE) and the National Stock Exchange (NSE), and provides access
to equities, derivatives, IPO’s, mutual funds, bonds and corporate FDs.

ABOUT RELIANCE SECURITIES

Reliance Securities, the broking arm of Reliance Capital, is one of the India’s

leading retail broking houses, providing customers with access to equities,

derivatives, currency, IPOs, mutual funds, bonds, and corporate FDs amongst

others. The large array of financial offerings helps customers fulfilling their

investment objectives on one platform.

Reliance Securities offers secure online trading platform & investment activities in

a cost effective and convenient manner. To enable wider participation, it also

provides the convenience of trading offline through variety of means including

Call and Trade, Branch Dealing Desks and network of affiliates.

Focus on timely & error-free execution represents its core strength. Our best in

class research offerings, high degree of compliance with stock exchange

regulations, ethical business standards, & strong risk management capabilities;

Reliance Securities positions itself amongst strong & innovative brands in the

financial services space.

Reliance Securities has over 8 lakh customers; having strong affiliate network with

over 1000 offices across India.

WHY US

At Reliance Securities, we’ve changed the way people look at investing in stock

markets and take investment decisions.

Our revolutionized equity trading solutions, best-in-class research, competitive

brokerage plans and exclusive reward program equips you with the best-in-class

trading experience.

Welcome to the world of an unrivalled trading experience!

OUR OFFERINGS

One Stop Shop for All Trading Needs

We cater to all kinds of investors. We offer a bouquet of financial products,

including cutting-edge and innovative products, aimed at boosting your investment

returns. We help you make informed choices with the help of our research reports,

tools and up-to-date market news.

Superior Research- Our highly qualified and trained equity research cell offers you

comprehensive research reports, trading strategies, daily calls and stock picks,

enabling you to make the right investment decisions and maximizing your

profitability. In addition, we offer you tools such as the R-Model portfolio where

the decision to pick the right stocks for you will rest with our highly qualified

research team.
Wide range of investment options- Our investment options include equity,

derivatives, currency, IPO, mutual funds, bonds and corporate fixed deposits. Our

innovative products, which include delivery and leveraged intraday products,

regular stock purchase plans, and after market orders, maximise your buying power

and help you boost your returns.

High-speed and user friendly trading platforms- Our state-of-the-art, super-fast,

user-friendly and secure trading platforms such as Insta Plus and Insta Xpress,

offer seamless, hassle-free and enhanced trading experience to customers.

Support services- We have a dedicated Call and Trade desk at your disposal, so you

can place orders even when you are not online. Our tracking system enables you to

track your portfolio with ease.

 RESEARCH OBJECTIVES

MAIN OBJECTIVE OF THE RESEARCH

The objective of my research is “TO STUDY INVESTOR

INVESTMENT BEHAVIOR IN STOCK MARKET &

SUGGESTING GOOD INVESTMENT STRATEGY “

OTHER OBJECTIVES

 To study the investment habit of the people in the stock market.

 To know about the people’s preference for investment whether

investment or trading

 To understand the frequency of investment in the market

 To analyze from total saving how much portion of amount people

invest in stock market

 To understand how much people invest at a time

 To know that for how much period people invest in stock market

 To understand the expected return of people from investment

 To know on what basis people invest in stock market

 The preference of people for investment in a particular sector

 To analyze the preferred price range of share by people

 To understand the people’s investment strategy

 To find out the common mistakes made by investors

 To define certain views for making money in stock market

 RESEARCH METHODOLOGY

 RESEARCH APPROACH

To achieve this objective I have conducted a survey and then collected data

and analyzed it and lastly find out the needed results

 SAMPLING METHOD

I have used simple random sampling method for my research

 SOURCES OF DATA COLLECTION

Data sources of are two types

1) Primary data sources

2) Secondary data sources

1) Primary data sources

Primary data can be collected through the questionnaire. Which contain the

different question about the investment behavior and investment strategy.

Primary data sources are very helpful for research. This provides

information related to the investor’s investment behavior & investment

strategy.
2) Secondary data sources

Secondary data can be collected through e-learning. It provides information

regarding Reliance Security

 SAMPLE SIZE

I used 60 samples for my study

 STATASTICAL TOOL USED FOR DATA ANALYSIS

PERCENTILE METHOD

 AREA OF STUDY

THE CUSTOMERS OF GEOJIT FINANCIAL SERVICES LIMITED,

MEHASANA
 DATA ANALYSIS

1. From how many years you are in the stock market?

0-2 year 2-4 year

4-6 year more than 6 year

No. of years No. of persons

0-2 year 21

2-4 year 24

4-6 year 9

more than 6 year 6

As shown above 35 % persons of my study have experience of about 2 years, about

40 % persons of my study have experience about 2 to 4 years, 15 % persons of my

study have experience about 4 to 6 years, about 10 % persons of my study have

experience of more than 6 years in stock market.

2. How much investment have you made in the market? (Approximate)

0-2 lakh 2-4 lakh

4-6 lakh more than 6 lakh

Investment No. of persons

0-2 lack 30

2-4 lack 18

4-6 lack 9

more than 6 lack 3

As per my research about 50 % persons would like to invest up to 2 lack while 30

% persons would like to invest 2 to 4 lack and about 15 % persons would like to

invest 4 to 6 lack while only 5 % persons would like to invest more than 6 lack. So

company should focus on those customers who would like to invest more in stock

market.
3. Who brings you in stock market?

Friends & Relative News paper

Advertise Mega public issue

Source No. of persons

Friends & Relative 42
News paper 12

Advertise 0
Mega public issue 6
As per above chart about 70 % persons would like to invest in stock market as per

opinion of their friends and relatives while 20 % persons would like to invest as

per newspaper and magazines and persons do not like to invest through advertising

and about 10 % persons would like to invest as per mega public issue. So it can be

conclude that most of the people invest as per opinion of their friends and relatives.
 4. What you prefer more?

Investment Trading Both

Preference No. of persons

Investment 36
Trading 18
Both 6

As per my research 60 % persons prefer investment while 30 % persons prefer

trading and only 10 % persons prefer both investment & trading. So we can

conclude that majority of the people prefer to invest rather than trading in the stock

market.
5 How much investment experience do you have?

Very little knowledge & experience

Some investment knowledge & understanding

Very huge experience & good knowledge of investment

Experience No. of
persons
Very little knowledge & experience 6

Some investment knowledge & understanding 42

Very huge experience &good knowledge of 12

investment
As per above chart 10% persons have Very little knowledge & experience while

about 70 % persons have Some investment knowledge & understanding and about

20% persons have Very huge experience &good knowledge of investment. From

above information it is clear that the majority of people who invest in stock market

have average knowledge of investment.

 6. How frequently do you invest in the market?

Weekly Monthly

Quarterly Half yearly

Frequency of investment No. of persons

Weekly 24
Monthly 18
Quarterly 8
Half yearly 10

As per my research about 40 % persons would like to invest weekly in stock

market while 30% persons would like to invest monthly in stock market and about

13.33% persons would like to invest quarterly in stock market while about 16.67%

persons would like to invest half yearly in stock market.

 7. From total saving how much portion of amount you invest in stock market?

10-20% 20-40% 40-60%

60-80% 80-100%

Investment in stock market No. of persons

10-20% 10
20-40% 24
40-60% 18
60-80% 4
80-100% 4

As per above chart about 16.66% persons invest 10 to 20% of their saving while

about 40% persons invest 20 to 40% of their saving and about 30% persons invest

40 to 60% of their saving and about 6.67% persons invest 60 to 80% of their

saving while about 6.67% persons invest 80 to 100% of their saving.

 8 How much do you invest at a time? (In1000Rs.)

Up to 5 5-10

10-15 15-20

20-25 More than 25

Investment at a time (In1000Rs.) No. of persons

Up to 5 20
5-10 20
10-15 10
15-20 2
20-25 2
More than 25 6

As per my research about 33.34% persons invest up to 5000 Rs. At a time and
about 33.345 persons invest 5000 to 10000 Rs. At a time while about 16.66%
persons invest 10000 to 15000 Rs. At a time and about 3.33% persons invest 15000
to 20000 Rs. At a time while another 3.33% persons would like to invest 20000 to
25000 Rs. At a time and about 10% persons invest more than 25000 Rs. At a time.
9. For how much period you made investment?
 8-10 Days 1-3 Month

3-6 Month 6-12 Month

More than 1year

Period for investment No. of persons

8-10 Days 4
1-3 Month 24
3-6 Month 6
6-12 Month 18
More than 1year 8

Above chart shows that about 6.67% persons invest for 8 to 10 days while about

40% persons invest for 1 month to 3 month and about 10% persons invest for 3

month to 6 month while 30% persons invest for 6 month to 12 month and about

13.33% persons invest for more than one year.

10How much return you expect on your investment decision?

 8-12% 12-16%

16-20% More than 20%

Expected return No. of persons

8-12% 18
12-16% 11
16-20% 16
More than 20% 15

As per my research 30% persons expect 8 to 12% return while 18.33% persons
expect 12 to 16% return and about 26.67% expect 16 to 20% return while 25%
persons expect more than 2

11. On what basis you take your investment decision?

 Broker’s advise Market situation

Tips, paid service News paper, Magazine

Company’s news, Result Own study

Base No.of persons

Broker’s advise 12
Market situation 12
Tips, paid service 6
News paper, Magazine 8
Company’s news, Result 6
Own study 16

Above chart shown the various factors and its impact on investment and how

investor consider such factors while investing. The chart suggest that people much

like to invest according to their own study of stock market.

12. At current level which sector do you prefer more for investment?

Banking & Construction Energy & Power

Reality (real estate) Engineering

Metal Information technology

Capital Goods Financial Services

FMCG Telecom
Sector No. of persons
Banking & Construction 8
Energy & Power 12
Reality (real estate) 5

Engineering 4
Metal 4
Information technology 7
Capital Goods 5
Financial Services 6
FMCG 6
Telecom 3
 13. From below mentioned share price range which range do you prefer for
Buying share?

Below Rs.50 Rs.50-100

Rs100-500 More than Rs.500

Price range No. of persons

Below Rs.50 6
Rs.50-100 26
Rs100-500 20
More than Rs.500 8

Above chart shows the price range preferred by various persons. From the above chart it can be
conclude that majority of people prefer the price of share from 50 to 100.

14. What is your Investment strategy?

  Don’t invest more than 40% of your income
 Intention (market) environment based selection of sector and in that sector
invest in powerful companies
 Installment type investment like SIP
 Invest at every decline
 Invest for long term
 Invest in Blue Chip Company with good management.
 More investment, more money
 Invest in company which give good return to shareholder & have good
performance.
 Invest in short term profit making companies.
 Take delivery and wait up to sufficient return

15. In your opinion what are the mistakes made by common investors?

 Buy when price of share is high

 Don’t buy when price of share is low
 Purchase according to other’s views & tips
 Not buying in correction
 Buying speculative shares
 Buy at every upside and sell at every decline
 Invest money without understanding risk factor of sector and company
 Investors do not have patience.
16. What are your views for making money in stock market?

 Long term investment in powerful companies in recession time

 Buy in correction
 Avoid penny and speculative shares
 Buy at every decline and sell at every upside
 Give more time to your investment
 Invest your money systematically
 Study the companies, make your own policies for investment and do not fall
victim of fear and greed
 To make money, take chances
 Buy shares when people sell and sell shares when people buy

17. Give your opinion reasons for this major correction?

 World recession
 Forth coming political elections
 Excessive rise of equities market in recent time
 Global financial crisis
 American subprime issue
 Lowest consumers and industrial demand
 Historical recession in world market
 Stock loss their trust in public
 Change in normal investor’s thinking regarding stock
 Inflation
 Foreign investor
FINDINGS

 People who invest in stock market have experience of stock market average 2 to 4 years.

 Most of the people do not want to invest in stock market more than 2 lack.

 Many people take decision to invest in stock market as per opinion of their friends and
relatives.

 People prefer to invest in stock market rather than trading

 People who invest in stock market have some investment knowledge & understanding
regarding stock market.

 Most of the people make investment in stock market weekly or monthly.

 People would like to invest about 40% of their saving in stock market.

 People like to invest up to 10,000 rs. At a time

 Most of the people would like to invest for 1 to 3 months in stock market.

 Most of the people expect 15 % return of their investment.

 Most of the people invest on the basis of their own study, broker’s advice & market
situation.

 Most of the people prefer to invest in energy & power sector and banking & construction
sector.
 Most of the people prefer price of share about 50 to 100 rs.

 Invest in company which give good return to shareholder & have good performance.

 Take delivery and wait up to sufficient return

 Intention (market) environment based selection of sector and in that sector invest in
powerful companies
 Long term investment in powerful companies in recession time
 Study the companies, make your own policies for investment and do not fall victim of
fear and greed

LIMITATIONS

 Some of the respondent does not give proper answers of questions.

 Respondent refuse to give answers of questions.

 Mostly in my research I have to face language barrier, people do not

understand English language well, so I have to explain them in Gujarati.

 It is difficult to complete the research well in 21 days.

 Some respondent tries to avoid feeling questionnaire.

 CONCLUSION

It is a good experience for me to conduct research about study of investor

investment behavior in stock market & suggesting good investment strategy.
It will prove very helpful to me in my future career.
While conducting this research I can understand the strategies of the people who
invest in stock market, their preference for investment, their experience of stock
market, frequency of investment, expected return, on which basis they invest &
their views to about to make money in stock market.
 BIBLIOGRAPHY

 WEBSITE

www.geojit.com

 ANNEXURE

Questionnaire
 Dear Sir/ Madam,

I am student of B.B.A programme in V.M.Patel Collage Of

Management Studies, Kherva. I m conducting a survey on study of investor

investment behavior in stock market & suggesting good investment strategy in

Mehsana city. Please help me in this by answering the following simple questions. I

will treat any information you give me in strictest confident and will use only for

academic purpose.

1. From how many years you are in the stock market?

0-2 year 2-4 year

4.6 year more than 6 year

2. How much investment have you made in the market? (Approximate)

0-2 lakh 2-4 lakh

4-6 lakh more than 6 lakh

3. Who brings you in stock market?

Friends & Relative News paper

Advertise Mega public issue

4. What you prefer more?

Investment Trading Both

5. How much investment experience do you have?

Very little knowledge & experience

Some investment knowledge & understanding

Very huge experience & good knowledge of investment

6. How frequently do you invest in the market?

Weekly Monthly

Quarterly Half yearly

7. From total saving how much portion of amount you invest in stock market?

10-20% 20-40% 40-60%

60-80% 80-100%

8. How much do you invest at a time? (In1000Rs.)

Up to 5 5-10

10-15 15-20

20-25 More than 25

9. For how much period you made investment?

8-10 Days 1-3 Month

3-6 Month 6-12 Month

More than 1year

10. How much return you expect on your investment decision?

8-12% 12-16%

16-20% More than 20%

11. On what basis you take your investment decision?

Broker’s advise

Market situation

Tips, paid service

 News paper, Magazine

Company’s news, Result

Own study

12. At current level which sector do you prefer more for investment?

Banking & Construction Energy & Power

Reality (real estate) Engineering

Metal Information technology

Capital Goods Financial Services

FMCG Telecom

13. From below mentioned share price range which range do you prefer for

Buying share?

Below Rs.50 Rs.50-100

Rs100-500 More than Rs.500

 14. What is your Investment strategy?

------------------------------------------------------------------------------------------------

15. In your opinion what are the mistakes made by common investors?

------------------------------------------------------------------------------------------------

16. What are your views for making money in stock market?

------------------------------------------------------------------------------------------------

17. Give your opinion reasons for this major correction?

------------------------------------------------------------------------------------------------

--------------------------------------- PERSONAL INFORMATION-------------------------------------

NAME: ---------------------------------------------------------------------

ADDRESS: -------------------------------------------------------------

AGE: ------------ YEARS

PROFESSION:
 A) BUSINESS B) SERVICE C) PROFESSION D) OTHER

ANNUAL INCOME:

A) LESS THAN 50,000 B) 50,000 TO 1,00,000

C) 1, 00,001 TO 3, 00,000 D) 3, 00,001 TO 5, 00,000

E) MORE THAN 5, 00,000