Summer Internship Report, June-July 09

Title of the Project

Analysis of Client
Investment Behavior
Project Report By: - Ronak Mayani

MBA 2008-2010
Section A
Roll No - 08
Third Semester
Amity Global Business School, Mumbai

Faculty Guide:-

Mrs. Latika Lodha

Corporate Guide:-

Mr. Swapnil Kamble

Assistant Vice – President
Angel Broking Limited

1
 Acknowledgements

I thank Mr. Swapnil Kamble and Mr. Manoj Makhija of Angel

Broking for their consistent guidance and motivation through the entire
internship program.

The training modules delivered by various analysts were a great source

of insight to me. The cultural event organized especially for interns
reflected affection and respect for interns which overwhelmed me with
joy and gratitude.

The internship with Angel Broking enriched my knowledge and

experience and I sincerely express my gratitude for conferring upon me
with such a golden opportunity.

I hereby declare that this report submitted in fulfillment of the

requirement of the college, is my original work.

Place : Mumbai

Date : 10 August 2009

-------------------------------------
Signature

Name : Ronak Mayani

Class : MBA 2008 – 10, Section A

Roll No.: 08

2
 ABSTRACT

The objective of the project was to create a tool for Angel Broking which
identifies a particular investor into a specific category and also a tool which links
the formed categories to their portfolios and derive specific conclusions for the
same.

The Analysis on Client Investment Behavior revolves around three dimensions as

follows:

1. Investment Behavior: What kind of people invest in the market?

 Determining Personalities into Aggressive, Motivated, Balanced,

Cautious and Defensive

2. Call Evaluation: What kind of stock do they invest in?

 Analyzing the high, medium and low patterns of the stocks with its
call accuracy.

3. Portfolio Analysis: Why do they choose specific stocks?

 Analyzing Angel Client’s preference over large cap, mid cap and
small cap stocks and low, medium and high growth stocks and
matching the same with Non-Angel Clients.

The objective was accomplished by conducting a survey through samples and

conducting the survey in two folds. The findings of the first survey were validated
with that of the second phase by increasing the sample size. Hence the tool so
formed is validated.

Accomplishments:

3
 1) The tool so formed was validated by distributing the findings on the Normal
Distribution Curve i.e. Bell Curve for both the sampling. The personalities
so formed were linked to their portfolios and various observations were made
to have some conclusive findings which could help Angel in allocating the
portfolios to the new clients.

2) In order to determine the Angel Call accuracy for the period Jan-July 2009
Bhavcopies were downloaded from the website of BSE and the accuracy was
determined. At the same time the growth rate of the call till date was also
determined through a tool formed.

3) The tool determining the accuracy level and the growth rate of the calls made
by Angel Broking was formulated with the help of excel wherein the
CMP(Current Market Price), Call Date and target price of the stocks when
inputted will work out the call accuracy and its growth automatically.

4) Both the tool formed will add value to Angel Broking as both the tools will be
converted by Angel Broking into software at a later stage and will be used by
Angel in creating value to their present as well as the potential customers.

RESULTS:-

The findings of the first phase research as well as the second phase research
matched. The discrepancies encountered were explained with appropriate reasons.
The differences were very few and explained hence the objective was achieved.

There were a large number of discrepancies in validating the findings of angle

clients’ portfolios with that of the non-angel clients’ portfolios due to various
limitations which is explained in the report. Also considerable recommendations
are given to validate those findings for further research

Final recommendations are given on as to how the project can be taken forward
from here and how can angel use the findings of the report to add value to the
clients. Also recommendations, on basis of research, on how angel can increase the
customer base of the company are given.

4
 TABLE OF CONTENTS

Sr. No. Topic Page

No.
1 Introduction
1. Objective 6
1
1. Research Methodology 6
2
1.3 Structure of the Report 7
2 Materials and Methods
2. Questionnaire 8
1
3 Results Discussions and Conclusions
3. Normal Distribution Curve 14
1
3. Comparative Chart Analysis
2
3. a) Two factor comparison 16
3
b) Category wise comparison 26
c) Region wise comparison 39
4. Portfolio Analysis (Part 1) 50
1
4. Portfolio Analysis (Part 2) 55

5
 2
5 Call Evaluation 57
6 Conclusions and Recommendations 59
7 Appendices
• Specimen of Tools
7. Security Holding Report 62
1
7. Questionnaire Sample 63
2
7. Call Evaluation Tool 64
3

6
 1) Introduction

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.

1.1) OBJECTIVE:

1) To examine all investors through a research and dividing them into five
different categories. Validating the tool by dividing the research in two
phases.

2) To determine the accuracy level and the growth level of calls given by
Angel Broking during the period Jan – July 2009 and also to create a tool
for the same which makes the job easier.

3) To derive conclusions out of the analysis of portfolios of Angel Clients and

then relating them with the Non-Angel Clients’ Portfolios.

1.2) Research Methodology

7
 Research
1.3) Structure of the Report

What Kind of People

Investment Behavior
⇒ Brain Storming
Call Evaluation
⇒ Choosing the data
sources
Portfolio Analysis
⇒ Benchmarking

⇒ Devising a tool ⇒ Validation of data ⇒ Allocation of

Weightings to
stocks

⇒ Pilot ⇒ Developing Logic ⇒ Classification

of portfolios

⇒ Extracting traits ⇒ Call Accuracy ⇒ Categorization

⇒ Top of portfolios
Picks
⇒ Positio
nal
⇒ Nifty
⇒ Intrad
ay
⇒ Events

8
 ⇒ Technical
⇒ Allocation of ⇒ Summarizing ⇒ Group Analysis
Weights

⇒ Validating the ⇒ Creating a Tool ⇒ Discrepancies

Tool

2) MATERIALS AND METHODS

2.1) QUESTIONNAIRE

To serve the purpose of research, a Questionnaire was designed to capture the

details necessary to achieve the research objective. An Electronic Questionnaire
was designed on Excel so as to automate the work & minimize on paper work.

With the help of Control Toolbox, “Option Buttons” were created. With the help
of these buttons the response for a particular question was captured once an Option
Button was clicked. Once all the details were filled, the TRANSFER “Command
Button” could be clicked which enabled the transfer of all the responses of a
particular client to a different sheet. This enabled the collation of data into a

9
central database which would make the analysis easier. The specimen of
questionnaire is appended to the report

Sample Size

No. of calls made (i.e. sample size) for the research in the first part was as follows:-

No. of Angel Clients called 52

No. of Angel calls converted (response received) 30

No. of Non - Angel Clients called 986

No. of Non - Angel calls converted (response received) 250

So, the sample size was 30 for Angel Clients & 250 for non-Angel clients.

The responses were added for another part of the research.

No. of calls made (i.e. sample size) for the research in the second part was as
follows:-

No .of Non – Angel Clients called 450

No. of Non - Angel calls converted (response received) 110

So, the sample size was 30 for Angel Clients & 360 for non- Angel Clients.

There were in all thirteen questions formulated for the research to know
different patterns of investment. Out of which five important questions were
taken to determine the categories of investors.

INFERENCES from different questions:-

10
The following five parameters were found most important to determine the
investment behavior of an individual.

1) Time Horizon of Investment

2) Percentage of their total investment in Equity
3) Loss-bearing capacity of the client
4) Asset-class that holds a client’s maximum investment
5) Level of awareness about the market

On the basis of the above mentioned parameters, the respondents were categorized
into five personalities viz.-Aggressive, Motivated, Balanced, Cautious and
Defensive.

Aggressive: The aggressive clients have maximum investment in equity, futures

and options. Their investment proportion in equity is about 75-100%.Their loss
bearing capacity is usually the highest since they are willing to buy even when the
stock prices drop. This helps them to average out their investments in stock. Their
awareness about the market tends to be on the higher side. The time horizon of
investment of these clients hovers around 0-4 weeks. Such investors’ churning out
period is less and they believe in quick gains. Their risk appetite is more. They tend
to believe in the philosophy of higher risks lead to higher returns.

Motivated: The Motivated clients have a considerable amount of investment in

equity, futures and options. Their investment proportion in equity is about 51-75%.
Their loss bearing capacity is also higher since they are willing to buy even when
the stock prices drop. This helps them to average out their investment in stocks.
Their awareness about the stock-market tends to be higher. Their experience in the

11
stock markets, higher awareness about the markets keeps them motivated. The time
horizon of investment of these investors is about 4-12 weeks.

Balanced: The balanced clients have a moderate investment in equity, futures and
options. Their investment proportion in equity is about 26-50% and the remaining
funds are generally diversified in to gold, term deposits and insurance. Their loss
bearing capacity is moderate since they are willing to hold the stock even when the
stock prices drop. In short, they wait for the prices to rise in future so that they can
minimize their loss. Most of the people falling in this category would hold the stock
which is fundamentally good but which is undervalued at the moment. Their
awareness about the stock market tends to be moderate. The time horizon of
investment of these investors is about 4-12 weeks.

Cautious: The clients whose loss bearing capacity is the lowest are cautious in
nature. Their investment in equity, futures and options is the lowest. Their
investment proportion in equity is about 1-25% and the remaining funds are
channelized towards other asset classes. Their loss bearing capacity is the lowest as
they immediately sell the stock with a fall in its price. Such clients follow stop loss
in futures and options strictly. Their awareness about the market tends to be quite
low. The time horizon of investment of these investors is generally greater than 12
weeks.

Defensive: These clients generally do not invest in equity, futures and options.
They can also be the people who have suffered losses in the market and hence
avoid the market completely. They are highly risk-averse people who would like to
avoid losses under all circumstances. Generally their maximum investment would
be in secured asset classes like Term Deposits, Insurance and to some extent real
estate. Since their loss bearing capacity is nil they tend to be resistant and rigid
towards investment in stock markets. Their knowledge quotient is nil. Due to

12
danger of losses they develop a defensive approach in such assets involving high
risk.

Below is the scores for the different parameters mentioned above.

76-100% 51-75% 26-50% 1-25%

Equity % 6 4.5 3 1.5

Equity & Real Term

F&O Estate Gold MF Insurance Deposits
Asset Class 6 5 4 3 2 1

Buy Hold Sell

Loss
Bearing
Capacity 6 4 2

Market
Awareness High Moderate Low
6 4 2

Time >12
Horizon 0-4 weeks 4-12 weeks weeks
6 4 2

The maximum score given to any option was 6 and the minimum was 1.

The first three parameters explained above have been assigned a weight of 3
each, as these three factors are the most important and crucial factors in
determining the investment behavior of a person. The remaining two factors
have been assigned a weight of 1 each, as these factors are not the ones that

13
 would clearly define a person’s investment behavior. Level of awareness about
the market can be high in a defensive person but still he might not invest in stock
market because he is just not interested!!! Similarly a person doing intraday
trades might be cautious as he may strictly follow stop-loss and may use a very
cautious approach while trading. The time-horizon does not on its own define the
investment behavior hence it gets a lower weight while calculating the total score
of a client.

Alterations Made

For the purpose of analysis, two different factors were considered in isolation. Only
those factors which would influence the results & achieve the research objective
were considered.

For the purpose of Analysis some classes were combined for one or all of the
following reasons:

1) It made better sense for those parameters to be combined as they created

better synergy.
2) The responses were too few to be considered for analysis & had a close
substitute with which it could be combined.
3) The client was not 100% sure whether to go for option a or b, as he
considered himself to be in both the categories equally.

Classes combined:

Gut Feeling & News & Personal Analysis & Others Analysis

14
Also, age classes were defined to make it easier for respondents to be categorized
into different age groups.

Age Groups:

< 24, 24 – 30, 30 – 40, 40 – 60 and > 60

Qualification:

Under Graduate, Graduate and Post Graduate

Occupation:

Student, Service, Retired, Housewife and Business

Another tool used in the project was the “Normal Distribution Curve” i.e. the
Bell Curve. All the five categories so formed were distributed on the Bell curve
for both the Phase of Research and the analysis was made accordingly.

3) RESULTS & FINDINGS

15
 3.1) NORMAL DISTRIBUTION CURVE

ANALYSIS (PART 1)
12.02% 20.19% 38.94% 20.19% 8.65%
Aggressive Motivated Balanced Cautious Defensive

ANALYSIS (PART 2)
18.35% 23.85% 39.45% 10.09% 8.26%
Aggressive Motivated Balanced Cautious Defensive

CUMULATIVE ANALYSIS
14.20% 21.45% 39.12% 16.72% 8.52%
Aggressive Motivated Balanced Cautious Defensive

16
 COMPARATIVE ANALYSIS

Aggressive Motivated Balanced Cautious Defensive

CUMULATIVE 14.20% 21.45% 39.12% 16.72% 8.52%
ORIGINAL 12.02% 20.19% 38.94% 20.19% 8.65%

Difference -2.18% -1.26% -0.17% 3.47% 0.14%

There is a considerable change of 3.47% and 2.18% in Cautious and Aggressive models.
Motivated, Balanced and Defensive are almost in line with the original trend.

Reason
One of the reasons for decrease in the percentage of cautious and increase in the
aggressive clients could be attributed to increase in % of investible amount into equity
market. All the cautious investors have their major investment into MFs, insurance, term
deposits etc. Most of their investment into equity is only in the range of 1-25%.
The original research was done in May and June when the market was very bleak.
It is just after June and more importantly after the elections the people have again started
investing into the stock market.
The turnover of BSE is also on ever increasing since April 2009. Hence the
cautious investors have been transferred to either motivated or aggressive investors.

17
3.2) COMPARATIVE CHART ANALYSIS OF THE RESEARCH
A) Comparative Analysis of different factors

1) Age Class & Time Horizon

Former Analysis News Analysis

Count Count
of of Time
Name Time Horizon Name Horizon
Age 0-4 >12 4 - 12 Grand Age >12 0-4 4-12 Grand
Class weeks weeks weeks Total Class weeks weeks weeks Total
<24 4 20 7 31
<24 12 6 18 >60 7 3 1 11
24 -
24 - 30 25 12 19 56 30 17 40 24 81
31 -
31 - 40 19 26 20 65
40 34 39 25 98
41 - 60 14 17 10 41 41 -
60 21 20 14 55
>60 3 6 1 10 (blank)
Grand Grand
Total 73 61 56 190 Total 83 122 71 276

18
 Observation: (Former Analysis)

In <24 age group, 66.67% of the respondents invest for 0-4 weeks. This not only
forms a major proportion of the “< 24” age group, but is also the maximum out of
all the categories. It indicates that the people in this age group generally have a
short term view & don’t stay invested in a particular stock for a long period of time.
They prefer to churn money quickly & try to get quick profits over a short term in
the market.

19
In >60 Age group, max (60%) invest for >12 weeks. This is exactly opposite of the
above. Respondents in this category generally have a long term view & stay
invested in a particular stock for a long period of time. They don’t prefer to churn
money quickly & wait for the right opportunity. They generally view stocks as an
investment rather than a source of income or a way to get quick profits.
Observation: (New Analysis)
The conclusion of the new analysis exactly coincides with the former.

2) Age Class & Exposure to Equity

Former Analysis
New Analysis

Count Count
of Equity of Equity
Name % Name %
Age 1- 26 - 51 - 75 & Grand Age 1- 26 - 51 - 75 &
Class 25% 50% 75% above Total Class 25% 50% 75% above Total
<24 7 2 10 19 <24 10 5 2 14 31
24 - >60 2 3 2 4 11
30 19 12 8 14 53 24 -
31 - 30 26 18 13 24 81
40 18 20 9 16 63 31 -
41 - 40 29 26 16 27 98
60 13 16 5 7 41 41 -
>60 2 3 1 4 10 60 17 18 7 13 55
(blank)
Grand Grand
Total 59 53 23 51 186 Total 84 70 40 82 276

20
 Observation: (Former Analysis)

People below 24 yrs age either have very high exposure or very low exposure to
equity. Probable Reason for having less than 25% in equity: People in this
category (< 24 years) generally have very low savings & can’t risk their meagre
savings in equity. Probable Reason for having more than 75% in equity:
Youngsters who get substantial money from parents to save/spend feel they don’t
have a more attractive option than equity to earn some quick money.
Observation: (New Analysis)
The conclusion of the new analysis coincides with the former.

3) Age Class – Decision Basis

Former Analysis
New Analysis

Count of Count
Name Decision basis of Decisio
Age Broker Grand Name n basis
Class Analysis Calls News Total Age Broker Grand
Class Analysis Calls News (blank) Total
<24 13 3 4 20 <24 23 6 2 31
>60 4 6 1 11
24 – 30 36 16 6 58 24 -
30 50 23 8 81
31 – 40 41 16 6 63
31 -
40 61 27 10 98
41 – 60 24 12 6 42
41 -
>60 4 5 1 10 60 31 16 8 55
(blank)
Grand Grand
Total 118 52 23 193 Total 169 78 29 276

21
 Observation: (Former Analysis)
Around 62-65% of respondents in 24-40 age class go for Analysis rather than news &
Broker Calls
Respondents in “> 60” age class rely more on Broker Calls. 50% of the respondents
believed more on Broker

Observation: (New Analysis)

The conclusion of the new analysis coincides with the former.

4) Age Class – Asset Class

Former Analysis

Count of Investment
Name in asts
Age Gold Insurance MF Real Term Equity Grand

22
 &
Class Estate Deposits F&O Total
<24 1 1 1 2 17 22
24 -
30 1 5 7 3 7 41 64
31 -
40 10 6 6 8 43 73
41 -
60 1 8 6 1 11 20 47
>60 4 2 4 10
Grand
Total 2 24 24 11 30 125 216

Observation: (Former Analysis)

77.27% of <24 go for Equity

40% of >60 go for MF

23
 Preference for Gold & MF increase with age,

New Analysis

Count
of Investment in
Name assets
Equity
Age & Real Term Grand
Class F&O Gold Insurance MF Estate Deposits (blank) Total
<24 27 2 2 1 3 35
>60 5 4 2 11
24 -
30 65 3 10 9 3 8 98
31 -
40 71 1 12 7 6 12 109
41 -
60 33 1 8 6 3 11 62
(blank)
Grand
Total 201 5 32 28 13 36 315

Observation: (New Analysis)

The conclusion of the new analysis coincides with the former.

5) Time Horizon – Decision Basis

Former Analysis New
Analysis

24
Count
of
Name Decision basis
Time Broker Grand
Horizon Analysis Calls News Total
Count of Name Decision basis
0-4
Broker Grand
weeks 44 18 11 73
Time Horizon Analysis Calls News (blank) Total
>12
>12 weeks 55 24 4 83
weeks 46 14 5 65
0 - 4 weeks 75 31 16 122
4 - 12
4-12 weeks 39 23 9 71
weeks 28 22 8 58
(blank)
Grand Total 169 78 29 276
Grand
Total 118 54 24 196

Observation: (Former Analysis)

70.76% of >12 go by Analysis

Comparatively, broker calls reliability is maximum for respondents invest for 4-12
weeks.

25
 Observation: (New Analysis)
The conclusion of the new analysis coincides with the former.

6) Age – Platform

New Analysis
Former Analysis
Count Count
of of
Name Platform Name Platform
Age Grand
Age Grand Class Phone Website (blank) Total
Class Phone Website Total <24 15 16 31
<24 8 11 19 >60 10 1 11
24 – 24 -
30 28 29 57 30 33 48 81
31 – 31 -
40 32 31 63 40 51 47 98
41 - (blank) 39 16 55
60 35 7 42 Grand
Total
>60 10 10
.Grand
Total 113 78 191 148 128 276

26
Observation: (Former Analysis)
>60 totally through phone. <24 max (58%) through website
In 41-60% large proportion (83.33%) through phone

Observation: (New Analysis)

The conclusion of the new analysis coincides with the former.

7) Frequency – Time Horizon

Former Analysis
New Analysis

27
Count of Count of Time
Name Time Horizon Name Horizon
0-4 >12 4 - 12 Grand Count of Mkt >12 0-4 4-12 Grand
Frequency weeks weeks weeks Total NameFrequency
Cap weeks weeks weeks (blank) Total
Age Daily Large 6
Mid 84
Small 13
(blank) Grand103
Daily 43 4 11 58 Once
Class a Total
Once a <24 month 9 20 17 9 5 22 51
31
week 22 5 11 38 Once a
>60 6 5 11
quarter 23 2 15 40
Once a 24 -Once
30 a 43 32 6 81
month 7 17 20 44 31 -week
40 49 7 36 23 13 9 98
39
Once a 41 -Once
60 a 25 26 4 55
quarter 1 20 13 34 (blank)
year 27 4 12 43
Once a (blank)
Grand 132 116 28 276
year 1 20 4 25 TotalGrand
Grand Total 83 122 71 276
Total 74 66 59 199

Observation: (Former Analysis)

74% Daily trader’s time Horizon is 0-4 weeks.
80% "Once a year traders" invest for >12 weeks

Observation: (New Analysis)

The only difference between the two analyses is that 65% "Once a year traders"
invest for >12 weeks.
Count
of Mkt
Name Cap
Age Grand
Class Large Mid Small Total
8) Age-Mkt Cap
<24 4 10 3 17
24 -
30 25 20 4 49 28
31 -
40 28 21 5 54
41 -
60 15 17 1 33
>60 5 5 10
Grand
Total 77 73 13 163
Former Analysis
New analysis

Observation: (Former Analysis)

> 60: Generally don’t prefer small cap stocks
< 24: Majorly (59%) in mid cap stocks
Comparatively, small cap stocks preference is most in <24 segment

Observation: (New Analysis)

The conclusion of the new analysis coincides with the former.

9) Freq – Market Capitalization.

Count of Mkt Former Analysis

Name Cap
Grand New analysis
Frequency Large Mid Small Total
Daily 13 31 7 51
Once a
week 15 14 1 30
Once a 29
month 14 20 3 37
Once a
quarter 25 5 1 31
Once a
year 12 6 1 19
Grand
Total 79 76 13 168
 Mkt
Count of Name Cap
Grand
Frequency Large Mid Small (blank) Total
Daily 33 52 18 103
Once a month 24 24 3 51
Once a quarter 32 7 1 40
Once a week 17 19 3 39
Once a year 26 14 3 43
(blank)
Grand Total 132 116 28 276

Observation: (Former Analysis)

Out of the people who invest at least once a quarter, max (81%) invest in large cap
stocks
Max proportion (61%) of daily traders prefer Mid Cap stocks
Out of all categories, daily traders have max (14%) of Small Cap investors

Observation: (New Analysis) : The conclusion of the new analysis coincides

with the former.

B) Comparative analysis of Different categories with all factors

1) CATEGORY AND OCCUPATION

30
 Count of
Name Occ
self- Grand
CATEGORY housewife retired service student (blank) employed/business Total
AGGRESSIVE 2 9 2 11 24
BALANCED 6 37 3 7 28 81
CAUTIOUS 2 3 16 5 15 41
DEFENSIVE 10 3 6 19
MOTIVATED 13 7 22 42
Grand Total 2 11 85 5 22 82 207

Amongst students most of them are Aggressive. Majority of the motivated

clients are self employed or have their own business. Contrary to the popular
notion that the most aggressive players in the market are businessmen, here it
shows that majority of the aggressive players do a job for living, their profession is
service. Majority of the motivated people are self-employed. Another obvious

31
conclusion that can be drawn is that the defensive people are generally retired.
These people are highly risk averse.

New Analysis

Count of
Name Occ
housewif retire servic stude (blank self- Grand
CATEGORY e d e nt ) employed/business Total
AGGRESSIV
E 1 2 20 5 1 15 44
BALANCED 1 7 61 4 7 44 124
CAUTIOUS 2 4 24 1 5 16 52
DEFENSIVE 16 3 8 27
MOTIVATED 1 33 1 7 26 68
Grand Total 5 13 154 11 23 109 315

32
The difference between the former and the new analysis is that maximum of
the motivated clients are salaried individuals and defensive clients have a
highest score as salaried individuals compared to other personalities. The
other personalities remain unchanged.

2) CATEGORY AND QUALIFICATON

Former Analysis
Count of
Name Qual
Post Grand
CATEGORY graduate Graduate undergraduate (blank) Total
AGGRESSIVE 14 7 2 1 24
BALANCED 34 27 12 8 81

33
CAUTIOUS 23 9 2 7 41
DEFENSIVE 8 5 2 4 19
MOTIVATED 23 13 5 1 42
Grand Total 102 61 23 21 207

Maximum of the cautious clients are graduate.Also maximum of the motivated

,aggressive, defensive clients are graduates and some of them also hold the
degree of post-graduation.Balanced investors have a equal proportion of
graduates and post-graduates.
New Analysis
Count of
Name Qual
Post Grand
CATEGORY graduate Graduate undergraduate (blank) Total
AGGRESSIVE 28 10 5 1 44
BALANCED 59 36 21 8 124
CAUTIOUS 30 12 3 7 52
DEFENSIVE 13 7 2 5 27
MOTIVATED 35 20 11 2 68
Grand Total 165 85 42 23 315

34
The conclusion for the former and new analysis is similar.The conclusion
holds good for both the analysis.

3) CATEGORY AND AGE CLASS

Former Analysis
Count of
Name Age Class
Grand
CATEGORY <24 >60 24 - 30 31 - 40 41 - 60 Total
AGGRESSIVE 6 1 7 9 1 24
BALANCED 7 5 22 32 15 81
CAUTIOUS 1 2 8 17 13 41
DEFENSIVE 2 8 4 5 19
MOTIVATED 4 2 13 13 10 42
Grand Total 20 10 58 75 44 207

35
Maximum investors having personality of aggressive, balanced and cautious
are of the age-group 31-40.Maximum of the Defensive investors are of the age-
group of 24-30.Investors of >60 age do not fall in the category of defensive
personality. Among all the personalities the age group 41-60 is maximum in
the cautious personality category. Among all the personalities the age group of
<24 is maximum in the Aggressive personality category.

New Analysis
Count of
Name Age Class
Grand
CATEGORY <24 >60 24 - 30 31 - 40 41 - 60 Total
AGGRESSIV
E 11 1 13 15 4 44
BALANCED 12 6 37 46 23 124
CAUTIOUS 2 2 14 19 15 52
DEFENSIVE 3 12 6 6 27
MOTIVATED 7 2 22 23 14 68
Grand Total 35 11 98 109 62 315

36
The conclusion for the former and new analysis is similar.The conclusion
holds good for both the analysis.

4) CATEGORY AND DECISION

Former Analysis
Count of
Name Decision basis
Grand
CATEGORY Analysis Broker Calls News None Total
AGGRESSIVE 15 5 4 24
BALANCED 49 22 10 81
CAUTIOUS 24 6 1 10 41

37
DEFENSIVE 18 18
MOTIVATED 25 14 3 42
Grand Total 113 47 18 28 206

Defensive do not make any decision but a smaller proportion of them track the
news channels. Except defensive all the personality types depend maximum on
personal analysis. Aggressive have a highest belief on personal analysis
compared to other personalities. Among all the personalities motivated
investors follow broker calls to a highest extent. Relatively aggressive
individuals track news channels on a higher extent.

New Analysis
Count of
Name Decision basis
Grand
CATEGORY Analysis Broker Calls News None Total
AGGRESSIVE 31 7 6 44
BALANCED 74 35 15 124
CAUTIOUS 25 13 2 12 52
DEFENSIVE 27 27

38
 MOTIVATED 40 22 6 68
Grand Total 170 77 29 39 315

The only difference between the two charts is that defensive investors do not
make any decision and do not use any of the tools of decision making.

5) CATEGORY AND PORTFOLIO REVIEW

Former Analysis
Count of P/F
Name Review
CATEGOR Once a Once a Once a Once a Rarely/Ne (blan Grand
Y month quarter week year ver k) Total
AGGRESSI
VE 5 2 11 5 1 24
BALANCE
D 15 15 30 4 14 3 81
CAUTIOUS 3 7 2 5 5 19 41
DEFENSIV
E 18 18
MOTIVATE
D 7 5 16 2 10 2 42
Grand Total 30 29 59 11 34 43 206

39
Defensive category does not review their portfolio. Aggressive review their
portfolio maximum about once a week. Among all the personalities portfolio
review of about once a quarter is maximum in balanced investors. Among all
the personalities portfolio review of about once a month is maximum in
aggressive investors. Among all the personalities portfolio review of about
once a year is maximum in cautious investors. Among all the personalities
portfolio review is highly rare or never in motivated investors.

40
New Analysis

Count of P/F
Name Review
CATEGOR Once a Once a Once a Once a Rarely/Ne (blan Grand
Y month quarter week year ver k) Total
AGGRESSI
VE 7 3 24 1 8 1 44
BALANCE
D 22 20 54 9 16 3 124
CAUTIOUS 4 9 5 7 6 21 52
DEFENSIV
E 27 27
MOTIVATE
D 12 7 28 3 15 3 68
Grand Total 45 39 111 20 45 55 315

The deviation in both the analysis is that among all the personalities portfolio
review of about once a quarter is higher in cautious investors. Among all the

41
personalities portfolio review of about once a month is maximum in motivated
investors. Otherwise the conclusion holds good.

6) CATEGORY AND FREQUENCY

Former Analysis
Count of
Name Frequency
Once a Once a Once a Once a Grand
CATEGORY Daily NONE month quarter week year Total
AGGRESSIVE 14 3 1 2 4 24
BALANCED 23 18 15 18 7 81
CAUTIOUS 2 10 13 10 2 4 41
DEFENSIVE 18 18
MOTIVATED 15 6 4 10 7 42
Grand Total 54 28 40 30 32 22 206

Defensive have frequency as nil. Aggressive are maximum as having daily

frequency. Some cautious investors also have a nil frequency. Frequency of
once a quarter is relatively highest in cautious investors. Frequency of once a
month is relatively highest in cautious investors. Frequency of once a week is
relatively highest in motivated investors. Frequency of once a year is relatively
highest in motivated and aggressive investors.

42
New Analysis
Count of Frequen
Name cy
CATEGOR NON Once a Once a Once a Once a Grand
Y Daily E month quarter week year Total
AGGRESSI
VE 29 5 2 3 5 44
BALANCED 40 25 18 21 20 124
CAUTIOUS 5 12 13 13 3 6 52
DEFENSIV
E 27 27
MOTIVATE
D 29 8 7 12 12 68
Grand Total 103 39 51 40 39 43 315

The only difference between both the analyses is that frequency of once a year
is relatively highest in motivated investors. Otherwise the conclusions hold
good.

7) CATEGORY AND PREFERENCE

Former Analysis
Count of
Name Mkt Cap
CATEGORY Large Mid Small (blank) Grand

43
 Total
AGGRESSIVE 7 11 2 4 24
BALANCED 32 37 7 5 81
CAUTIOUS 15 7 1 18 41
DEFENSIVE 18 18
MOTIVATED 19 18 2 3 42
Grand Total 73 73 12 48 206

Aggressive investors prefer maximum mid cap stocks. Large cap stocks are
preferred maximum by motivated investors and small cap stocks are
preferred maximum by balanced investors.

New Analysis
Count of
Name Mkt Cap
Grand
CATEGORY Large Mid Small (blank) Mid Total
AGGRESSIVE 15 17 7 5 44
BALANCED 56 51 12 5 124
CAUTIOUS 19 12 1 20 52
DEFENSIVE 27 27
MOTIVATED 33 27 4 3 1 68
Grand Total 123 107 24 60 1 315

44
The difference between the two analyses is that small cap stocks are preferred
maximum by aggressive investors. Otherwise the conclusions hold good.

C) REGION WISE ANALYSIS

1) REGION FREQUENCY

Former Analysis
Count of
Name Frequency
Once a Once a Once a Grand
Location Daily Once a week month quarter year Total
Delhi 8 5 5 3 21
Gujarat 14 10 5 3 2 34
Rajasthan 14 1 1 5 21
South 14 3 6 4 5 32
Grand
Total 50 19 16 11 12 108

45
Rajasthan: Out of the people interviewed in Rajasthan, high percentage of
respondents (66.67%) is daily traders

When analyzed in comparison with other regions, Gujarat has the maximum
proportion (52.63%) of respondents who trade at least once a week.

People in Delhi trade quite frequently & generally are not investors. It majorly
consists of Daily, Once a week & once a month traders. It also has some people
who invest once a quarter. However, an important inference is that they generally
are very active & are not the people who invest once a year

New Analysis
Count of Frequen
Name cy
Once a Once a Once a Once a (blan Grand
Location Daily month quarter week year k) Total
Delhi 23 7 3 6 3 42
Gujarat 14 7 5 11 7 44
Rajasthan 30 2 2 2 11 47
South 18 6 9 3 7 43
(blank)
Grand Total 85 22 19 22 28 176

46
The difference between the two analyses is that people in Delhi trade quite
frequently & a small proportion of them are investors. It majorly consists of Daily,
Once a month, once a week & once a month traders. It also has some people who
invest once a quarter. Otherwise the remaining conclusions hold good.

2) Region – Market Cap

Former Analysis
Count of Mkt
Name Cap
Grand
Location Large Mid Small Total
Delhi 7 12 1 20
Gujarat 10 6 1 17
Rajasthan 8 10 3 21
South 12 15 5 32
Grand
Total 37 43 10 90

47
Delhi: 60% prefer mid cap

Gujarat: 59% Large cap

South has the maximum % of small cap investors i.e. 16% followed by Rajasthan at
14%

New Analysis
Count of
Name Mkt Cap
Grand
Location Large Mid Small (blank) Total
Delhi 19 18 5 42
Gujarat 24 14 6 44
Rajasthan 22 19 6 47
South 20 20 3 43
(blank)
Grand Total 85 71 20 176

The only difference between the two analyses is that

Delhi: 44% prefer mid cap

Gujarat has the maximum % of small cap investors i.e. 16% followed by Delhi at
14%.
The remaining conclusion coincides with the original.

3) Region – Platform

48
 Former Analysis

Count of
Name Platform
Grand
Location Phone Website Total
Delhi 13 8 21
Gujarat 23 11 34
Rajasthan 8 12 20
South 8 24 32
Grand
Total 52 55 107

South: 75% through website

Gujarat: High proportion through phone (68%)

New Analysis
Count of
Name Platform
Grand
Location Phone Website (blank) Total
Delhi 18 24 42
Gujarat 32 12 44
Rajasthan 21 26 47
South 12 31 43
(blank)

49
Grand Total 83 93 176

The conclusion for the former analysis holds good.

4) Region – Decision Basis

Former Analysis

Count of Name Decision basis

Broker Grand
Location Analysis Calls News Total
Delhi 14 5 3 22
Gujarat 19 9 6 34
Rajasthan 17 1 3 21
South 19 12 1 32
Grand Total 69 27 13 109

50
South: In Chennai good presence of Reliance Money. Decision on the basis of
broker calls is max in South @ 37.5%

Rajasthan: Max % of people in Rajasthan go for Analysis (Own/others) while

taking a decision. Incidentally of all the states Rajasthan has the max % of people
going for analysis @ 81%

Gujarat: Basically believe in analysis but of all the states has max % of people
going for News @ 18%

New Analysis
Count of
Name Decision basis
Grand
Location Analysis Broker Calls News (blank) Total
Delhi 28 11 3 42
Gujarat 24 13 7 44
Rajasthan 28 16 3 47
South 28 11 4 43
(blank)

51
Grand Total 108 51 17 176

The difference between the two analyses is that most analysis is done in Delhi
.State where broker calls are taken majorly is Rajasthan. The remaining
conclusion holds good.

5) Region – Loss Bearing Capacity

Former Analysis

Count of
Name Loss bearing capacity
Grand
Location Buy to Average Hold Sell Total
Delhi 4 14 3 21
Gujarat 4 22 8 34
Rajasthan 6 14 1 21
South 12 6 13 31
Grand
Total 26 56 25 107

52
Around 64-67% respondents from Delhi, Gujarat & Rajasthan prefer to Hold their
stock. Conclusion: Wait & watch approach. Not very sure of the market & their
investments. The people of south buy to average the most.
South: People very certain whether to sell the stock or buy more. Very decisive.

New Analysis
Count of
Name Loss bearing capacity
Grand
Location Buy to Average Hold Sell Total
Delhi 13 22 7 42
Gujarat 6 27 11 44
Rajasthan 17 22 8 47
South 11 15 17 43
(blank)
Grand Total 47 86 43 176

The difference between the two analyses is that

People in Rajasthan average their stocks the most.
South: People are not very certain whether to sell the stock or buy more. They sell
more as to buy the stocks. They cannot be termed as very decisive.
The remaining conclusion holds good.

53
6) Region – Awareness Quotient
Former Analysis

Count of
Name K.Q
Grand
Location High Low Moderate Total
Delhi 8 8 5 21
Gujarat 9 19 6 34
Rajasthan 2 16 3 21
South 11 14 7 32
Grand
Total 30 57 21 108

Rajasthan: Max % of people having low awareness @ 76%

People in Delhi & South have max % people in High Awareness category around
(34 - 38%)
New Analysis
Count of
Name K.Q
Grand
Location High Low Moderate (blank) Total
Delhi 11 16 15 42
Gujarat 11 27 6 44
Rajasthan 9 28 10 47
South 13 19 11 43
(blank)

54
 Grand Total 44 90 42 176

The conclusion of the former analysis holds good for the new.

7) Region – Asset Class

Former Analysis

Count of Investment in
Name assets
Gol Insuranc M Real Term Grand
Location Equity & F&O d e F Estate Deposits Total
Delhi 11 2 3 3 7 26
Gujarat 25 3 3 31
Rajasthan 21 1 1 23
South 30 1 6 5 1 2 45
Grand Total 87 1 11 9 7 10 125

55
Rajasthan: Highest % (91%) of people having exposure to Equity
People in Delhi are comparatively more associated with Term Deposits @ 28%
Rajasthan not at all in Real Estate, Gold or Insurance
Gujarat not at all in Gold, MF or Term Deposits

New Analysis
Count of Investment in
Name assets
Gol Insuran M Real Term (blan Grand
Location Equity & F&O d ce F Estate Deposits k) Total
Delhi 31 2 5 3 7 48
Gujarat 36 1 6 3 4 50
Rajasthan 42 1 3 2 2 50
South 38 7 3 1 1 50
(blank)
Grand
Total 147 2 18 10 7 14 198

56
The difference between the two analyses is that
People of Rajasthan do invest in Real Estate, Gold or Insurance but in smaller
proportions.
People of Gujarat do not invest in MF. But they do invest in Gold and Term
Deposits in smaller proportions.

57
4.1) PORTFOLIO ANALYSIS (Part 1)

A database of 51 Angel Clients was given which contained the Client Name, Client
Code, Scrip Name, Quantity of a scrip held & Value of a scrip held and Total
Quantity & Value of all scrips.

A snap shot of the portfolio of a client is shown on the next page.

In the sample given, minimum number of scrips in a portfolio was 1 & maximum
was 65. Every porfolio mainly gave the name, quantity & value of all scrips held
by a client as on 29th May 2009.

For the purpose of Portfolio Analysis, below procedure was followed:

1) Benchmarking of Stocks:

a) Returns were calculated for all the stocks on the BSE. The
Calculation of returns was as follows:

(P1 – P0)
P0

Where,

P1 = Stock Price as on 1st Jan 2009

P0 = Stock Price as on 29th May 2009

58
 b) All the stocks were ranked as per the returns given by them over the
period of 5 months. The 1st Rank was given to the stock which gave
the highest returns & last rank to the one which had given the least
returns. There were 2567 stocks to be ranked. Thus, the stocks
were diveded into three categories i.e. High, Medium & Low. The
1st 855 stocks were classified as High, next 855 as Medium &
remaining as Low. These stocks may not be in themselves High,
Medium or Low growth stocks but when ranked & compared with
others they can be classified in these categories.

2) Calculating Proportions in Portfolio

The proportion (%) of the value of every stock in a client’s portfolio was
calculated for the purpose of further analysis. The calculation was as
follows:

Market Value of the stock in the Portfolio * 100

Market Value of the Portfolio

3) Returnwise classification of Portfolio

Based on the above calculations, the percentage of his portfolio in High,

Medium & Low growth stocks were determined. This was done by first
classifying his portfolio in High, Low & Medium growth stocks & then
adding up all percentages calculated in (2) above categorywise.

Case:

59
60
 The left most column indicates the stock’s contribution to the portfolio.
Eg: Value of Aban Loyd = Rs. 234,899
Value of Portfolio = Rs. 487,961

Left most column is calculated as

234899 * 100 = 48.14%

487961

All the proportions for a particular category i.e. High, Medium & Low
growth was then calculated.

Eg: Aban, Akruti, Bharti, Moser Baer, Rolta & Satyam were stocks in
the low growth category as shown in Column 7.

Their proportions in the Client’s portfolio were as follows:

Aban 48.14%
Akruti 0.24%
Bharti 8.37%
Moser Baer 2.23%
Rolta 8.98%
Satyam 7.34%

When all the above stock proportions which fell in the low growth
category were added up, it came to 75.30%.

Similarly, the percentage of the portfolio in Medium & High growth

stocks were calculated.

61
4) Categorization as per Market Capitalization

All the 2567 stocks on the BSE were categorized into Large Cap, Mid Cap
& Small Cap as per their Market Capitalization.

5) Based on the above categorization, the stocks in the client’s portfolio were
identified as Large, Mid & Small Cap stocks. The Market Cap wise stock
categorization was done in column 8.

Similar to the above calculation, the proportion of stocks in the Client’s

potfolio in Large, Mid & Small Cap stocks was calculated.

Eg: Bharti, IDFC, Satyam & Unitech were stocks in the Large Market
Cap category as shown in Column 8.
Their proportions in the Client’s portfolio were as follows:

BHARATI 16.43%

IDFC 5.49%

SATYAM 7.34%

UNITECH 1.10%

When all the above stock proportions which fell in the low growth
category were added up, it came to 22.30%.

Similarly, the percentage of the portfolio in Mid Cap & Small Cap
stocks were calculated.

6) As explained earlier the Clients were Categorized as Aggressive, Motivated,

Balanced, Cautious & Defensive on the basis of the Questionaire

62
 administered to them. Data from these six steps were collated & presented
as below.

1st Column Name & Id of Client

2nd Column Category of the Client

3rd, 4th & 5th Column Indicates the % of Stocks in a Client’s

Portfolio in High, Medium & Low growth
stocks

6th Column Indicates the maximum proportion of a

client’s portfolio is in which category.
(Growthwise)

7rd, 8th & 9th Column Indicates the % of Stocks in a Client’s

Portfolio in High, Medium & Low growth
stocks

10th Column Indicates the maximum proportion of a

client’s portfolio is in which category.(Market
Cap wise)

63
4.2) PORTFOLIO ANALYSIS (Part 2)
In the second part of the research the portfolio of non – angel clients were known
by asking them about their portfolio when made calls to them for the research part
of it. The analysis of the same was done on the same line as done in the first part
where the portfolio of angel clients were analysed.

Limitations
The exact portfolio details of the non- angel clients was not known as it
was difficult to take out the precise portfolio out of the calls made for the
research. The respondents would only name the stocks which are at the “Top
of the Mind” i.e. mostly the large cap stocks.

Comparative analysis :-

1) Percent of Stocks in Large, Mid and Small Cap for Angel and Non
Angel clients:-
% of Stocks( non angel) % of Stocks (Angel Clients)
Large Mid Small Large Mid Small
Aggressive 64.71% 29.41% 5.88% 40.00% 60.00% 0.00%
Motivated 84.21% 10.53% 5.26% 100.00% 0.00% 0.00%
Balanced 75.76% 15.15% 9.09% 41.67% 50.00% 8.33%
Cautious 87.50% 12.50% 0.00% 66.67% 33.33% 0.00%

64
 1) There is no definite conclusion drawn by comparing the Non Angel vs
Angel Clients. The motivated and cautious clients invests majorly in Large
Cap stocks across both the type of respondents.
2) Investment is Small Cap stocks is the least for all categories for both angel
as well as non-angel clients.

2) Percent of Stocks in High, Medium & Low growth for Angel and Non
Angel clients:-
High Medium Low High Medium Low
Aggressive 23.53% 41.18% 35.29% 60.00% 20.00% 20.00%
Motivated 63.16% 21.05% 15.79% 75.00% 25.00% 0.00%
Balanced 57.58% 33.33% 9.09% 33.33% 33.33% 33.33%
Cautious 25.00% 12.50% 62.50% 66.67% 33.33% 0.00%

1) There is no definite conclusion drawn by comparing the Non Angel vs

Angel Clients.
2) Motivated clients invest majorly in High growth stocks for both angel as
well as non angel clients.

3 ) The average portfolio for angel as well as non angel clients across
categories is as follows:-
Average Portfolio (Non
Angel) Average Portfolio(Angel)
Large Mid Small Large Mid Small
Aggressive 73.92% 20.98% 5.10% 37.38% 48.64% 13.98%
Motivated 74.84% 16.26% 8.90% 79.72% 9.11% 11.17%
Balanced 79.44% 14.39% 6.16% 39.24% 40.26% 20.51%
Cautious 82.29% 17.71% 0.00% 61.15% 34.06% 4.78%

65
 High Medium Low High Medium Low
Aggressive 40.39% 31.96% 27.65% 54.18% 22.08% 23.74%
Motivated 58.09% 29.33% 12.58% 47.06% 35.71% 17.22%
Balanced 66.27% 28.15% 5.58% 34.30% 25.89% 39.81%
Cautious 35.42% 20.83% 43.75% 70.12% 29.88% 0.00%

1) Again there is no specific pattern.

2) On average a motivated client would have 75 to 80% investment in
large cap stocks.
3) A cautious client would have only around 0 to 5% investment in small
cap stocks.
4) A balanced client has around 25 to 30% investment in medium growth
stocks.

5) CALL EVALUATION
Call Analysis is done on all the calls given by the angel broking during the period
of January – July 2009.

1) Intraday Calls:-
Intraday Calls
Calls Call
Intrada Calls Achieve Accuracy
y Calls Given d %
Jan 16 10 62.50%
Feb 37 19 51.35%
March 79 48 60.76%
April 39 17 43.59%
May 62 38 61.29%
June 97 69 71.13%
July 53 29 54.72%
Average 57.91%

Intraday Calls :- The average accuracy of Intraday calls is 57.91% as compared to

55.90% till may. The accuracy of June and July Intraday Calls is increased to
71.13% and 54.72% respectively.

66
2) Nifty Calls
Nifty Calls
Calls Call
Intraday Calls Achieve Accuracy
Calls Given d %
Jan 12 7 58.33%
Feb 13 7 53.85%
March 11 4 36.36%
April 6 3 50.00%
May 9 3 33.33%
June 9 4 44.44%
July 9 2 22.22%
Average 42.65%

Nifty Calls :- The average accuracy of Nifty calls is 42.65% as

compared to 46.38% till may. The accuracy of June and July Nifty
Calls is 44.44% and 22.22% respectively.

1) Weekly Review

Weekly Review
Weekly Review:-Calls The weeklyCall
report average accuracy for June
Calls
and July together Achieve
is Accuracy
30.71%. Normally the weekly calls are for long
Calls
term, hence Given d
the accuracy % low but the profit/loss calculated
is quite
till1-Jun 12
July is around 3
7% overall 25.00%
profit assuming that positions were
13-Jun 6 3
taken on each and every stock from 50.00%
the report.
20-Jun 7 2 28.57%
27-Jun 4 0 0.00%
4-Jul 6 3 50.00% 3) MidCap Report
Avera
ge MidCap Report 30.71%
Cal Calls Calls Call
ls Given Achieve Accuracy

67
 d %
June 12 2 16.67%

MidCap Report :- The average accuracy of midcap report is

16.67%. Tha calls are for long term,hence the accuracy is quite
low. The profit till july is around 7% overall assuming that positions
were taken on each and every stock from the report.

4) Initiating Coverage
Initiating Coverage
Calls Calls Given Calls Achieved Call Accuracy %
20-Jul 1 1 100.00%

Initiating Coverage:- Angel has initiated coverage on Rallis India

and the call was achieved within 3 days of the call made. The
upside was around 9% on the call.

Hence finally a tool was created on excel where only CMP, Target Price
and the call date has to be entered and whether the call is achieved or not
and the profitability of the call is calculated automaticaly.

5) Conclusions and Recommendations

The tool formed for identifying different categories of the investors is validated
through two phased research and now can be use to determnine the personlaity of
any new investor in the equity market.
The analysis of the rsearch was done in three fold ways:-
a) Two Factor
b) Regional Analysis

68
 c) Category Analysis

All the unchanged observations after the second part of research are:-
1) In <24 age group, most of the respondents invest for 0-4 weeks.
2) In >60 Age group, max invest for >12 weeks.
3) People below 24 yrs age have very high exposure to equity (>75%)
4) Respondents in “> 60” age class rely more on Broker Calls.
5) >60 totally through phone. <24 max through website
6) People in South mostly trade online and people in Gujarat mostly trade
through phone.
7) People in Rajasthan has very low awareness level.
8) Among high awareness most of that is in Delhi and south
9) People in south have very low “loss bearing capacity”
10) Daily trading is mostly done in Rajasthan.
11) Balanced people are mostly salaried individuals.
12) <24 mostly falls into aggressive category.
13) Balanced people take more of broker calls comparatively.

Notable discrepancies are as follows:-

1) In the age group of more than 60, there is a slight shift from Mid cap Stocks
to Large Cap stocks in terms of preference
2) The second part of research was done when market was high in confidence,
and delhi people are the one’s who reacts more to the market sentiments.
The daily traders in delhi increased considerably from the previous
research. Also their preference for midcap increased
3) Rajastan people believes most in the broker calls. As from the research we
identified that in Rajasthan Angel Broking has a good presence and also the
call evaluation accuracy of angel of the current period has increased. Also
they are very low on awareness quotient. So investors depends on broker
calls for trading. Hence the finding is justified.

69
 4) Among the motivated lot of people majority of them are salaried people.
5) Aggressive category people have increased their preference in the Small
Cap stocks.

• As mentioned earlier there is no definite conclusions to be drawn on the

portfolio front.
• The call accuracy of Angel has been in the average zone of abut 50% to 60%
for most of the calls.
• The average growth of all calls made for the period of 2 months is in the range
of 6% to 7 %.

Recommendations

1) Taking the project forward, the analysis should be done on more of

Angel Clients portfolios than on Non-Angel Clients portfolios. This
would validate the findings made in the first part. The reason as
explained earlier is the limitation in getting the portfolio of the Non
Angelc clients.

70
 2) Aggressive and Motivated personalities should be targetted

3) Increase the reach of Angel Broking in Rajasthan as they are the one
who relies most on the broker calls.

4) The call accuracy increases with the upward movement in the market.
Angel should try to be accurate irrespective of the market swings.

5) Improvise Advisory provisions for maximum satisfaction of customer

queries.

71
 7) Appendices

72
 7.1) Security Holding Report

73
74
7.2) Questionnaire Sample

75
76
 7.3) The Call Evalaution Tool

77
78