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Financial Market and Investor's Behavior in Financial Market

Financial Market and Investor's Behavior in Financial Market

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Published by Hardeep Sharma

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Published by: Hardeep Sharma on May 11, 2010
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09/28/2012

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FINANCIAL MARKET FINANCIAL MARKET AND AND INVESTOR’S BEHAVIOUR IN INVESTOR’S BEHAVIOUR THE MARKET

IN MARKET

PRESENTED BY

HARDEEP SHARMA
MBA-2ND PRESENTED BY
ROLL HARDEEP SHARMA NO.-3832 MBA-2ND ROLL NO.-3832

FINANCIAL MARKETING
A financial market is a mechanism that allows people to easily buy and sell (trade) financial securities (such as stocks and bonds), commodities (such as precious metals or agricultural goods), and other fungible items of value at low transaction costs and at prices that reflect the efficient market hypothesis  Financial markets could mean: 1. Organizations that facilitate the trade in financial products. i.e. Stock exchanges facilitate the trade in stocks, bonds and warrants. 2. The coming together of buyers and sellers to trade financial products. i.e. stocks and shares are traded between buyers and sellers in a number of ways including: the use of stock exchanges; directly between buyers and sellers etc.

TYPES OF FINANCIAL MARKETS

FINANCIAL MARKET

C A P I T A L

M A R K E T S

C OM MA MR OK D E I T T S Y

M MA O R NK E E Y T S

D AM R A RR I K V E A T T I I N V G E

I NM S A U R RK A E N T C S E

F O R E I G N

E M X A C R H K A E N T G S E

TRADING IN FINANCIAL MARKET
EQUITY SHARES MUTUAL FUNDS DEBENTURES BONDS CERTIFICATE OF DEPOSIT COMMERCIAL PAPER

COMPANY PROFILE

COMPANY PROFILE
"SUCCESS HINGES ON A PASSION FOR EXCELLENCE"

"SUCCESS HINGES ON A PASSION FOR EXCELLENCE"

RATING: •3rd largest broking house of India in terms of trading terminals •5th largest sub-broker network in the country •5th largest distributors of IPO in Retail

IMPORTANT CHARACTERISTICS OF SMC

Member of NSE, BSE, NCDEX, MCX, DGCX, Clearing Member in NSE Derivative Segment & DGCX and ISO 9001: 2000 certified DP for shares and commodities. Promoted and lead by a team of professionals having rich experience in the capital markets of more than 15 years. Providers of one of the best trading platforms to trade in NSE, BSE, NCDEX, MCX and DGCX. SMC has expanded, globally by acquiring Trading & Clearing Membership of Dubai Gold and Commodity Exchange (DGCX). Dedicated and highly motivated workforce of more than 1000 personnel drawn from diverse academic backgrounds, such as CA, CS, ICWA, M.B.A and IT. Excellent Research Team.

VISION
To be a global major in providing complete investment solutions, with relentless focus on investor care, through superior efficiency and complete transparency.

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Mutual fund is a form of collective investment that pools money from many investors and invests the money in stocks, bonds, short-term money market instruments, and/or other securities. In a mutual fund, the fund manager trades the fund's underlying securities, realizing capital gains or loss, and collects the dividend or interest income. The investment proceeds are then passed along to the individual investors.

THE RISK AND RETURN ON INVESTMENT

OBJECTIVES OF THE STUDY

Know customer behavior in the market about their investment. Describe financial market & its components. Where mutual funds exist & contribute in it? Which type of risks and return a customer get in investment? Analysis of different mutual funds and concludes how one issue is better than other. Which factors should be focused while marketing investment?

RESEARCH METHODOLOGY
RESEARCH DESIGN DESCRIPTIVE SAMPLE SIZE 100 SAMPLING TECHNIQUE DELIBERATE PLACE CANNAUGHT PLACE,DELHI SOURCES OF DATA COLLECTION Primary : Tool – Questionnaire - Observation Secondary : Tool - SMC issues & magazine - Through SMC-website - BSE, MFAI website

Q-WHERE DO YOU LIKE TO INVEST YOUR MONEY? RANK THEM ACCORDING TO YOUR PREFERENCE (A) MUTUAL FUND (B) BANK F. D. (C) SHARES (D) POST OFFICE (E) GOVT. BONDS

Q-WHERE DOES MUTUAL FUND EXIST IN YOUR INVESTMENT PORTFOLIO?
(A) 0 - 25% (C) 50 - 75% (B) 25 - 50% (D) 75 – 100%

Q-ARE YOU SATISFIED FROM YOUR INVESTMENT? (A) YES (B) NO

Q-HOW WILL YOU RANK SECURITIES IN RESPECT OF THEIR RISK FACTOR? (A) EQUITY (B) MUTUAL FUNDS (C) COMMODITY (D) ‘F & O’

Q-HOW MUCH MINIMUM RETURNS DO YOU PREFER WHILE MAKING INVESTMENT? (A) 5-10% (B) 10-15% (C) 15-20% (D) 20-25%

Q-WHICH MEDIUM DO YOU MAKE FOR TRANSACTIONS?
(A) ONLINE (C) BY POST (B) BROKERS (D) SELF

Q-9 WHEN WOULD YOU LIKE TO INVEST YOUR MONEY? WHEN!
(A) MARKET IS VERY HIGH (B) MARKET IS RISING (C) MARKET IS DECLINING (D) MARKET IS VERY LOW

CONCLUSION OF RESEARCH Age factors  Geographical factors  Personal factors  Investor’s perception  Investor’s attitude

FINDINGS
 

   

People in India are risk averter they want safe investment that’s why people marked bank f.d as their first preference. People preferred mutual funds after bank f.d because in their opinion mutual funds are less risky as compared to other securities. 28% of the sample population is not aware about mutual fund and its schemes. Approximately 50% of population want to invest at most 25% of their investment in mutual funds. Approx. 70% people want return more than 10% on their investment for them mutual fund is a very good option. People want to invest when market is rising or it is very low.

LIMITATIONS Time horizon of study limits the research.  Few Customers were not ready to co-operate at the time of survey.  Cost factor was also a limitation of the study.  Sample size taken was less for representing real population. Respondents many times were uninterested or in hurry so there may be a little biasness from there side to complete the questionnaire like their attitude, values, and ego came in between.

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