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CHAPTER-I INTRODUCTION 1.1.

INTRODUCTION TO THE STUDY The main idea behind the study conducted was to find out the investors preference of commodity market with reference to Share khan Financial Services Pvt. Ltd, Gobi. This study should deal with the investors preference from commodity market. To identify the investors preference means, it should find out the characteristics of investors who invest under the uidance of different share brokers. !t also should concentrate on whether they are satisfied with the services and earnin s from the commodity market to provided by the investment an also by the brokers service. They will be e"pectin different types of commodities from their investment uide. Some of them may not be satisfied with their service and the information they ive. #y aim is to find out the investors preference from commodity market of the investors from their share brokers. $ow is investors satisfaction from commodity market satisfaction level can be improved by providin better services. %eepin secondary ob&ectives of the study are set. MEANING OF INVESTOR: 'n investor is any party that makes an investment. The term has taken on a specific meanin in finance to describe the particular types of people and companies that re ularly purchase e(uity or debt securities for financial ain in e"chan e for fundin an e"pandin company. Less fre(uently, the term is applied to parties who purchase real estate, currency, commodity derivatives, personal property, or other assets. The term implies that a party purchases and holds assets in hopes of achievin term income.
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all these thin s in mind the primary and

capital ain or cash flow, not as a profession or for short)

T !es o" investors: $ere is an overlappin , non)e"clusive list of investor types* !ndividual investors +includin trusts on behalf of individuals, and umbrella companies

formed for two or more to pool investment funds,. -ollectors of art, anti(ues, and other thin s of value. 'n el investors, either individually or in roups. .enture capital funds, which serve as investment collectives on behalf of individuals, companies, pension plans, insurance reserves, or other funds. !nvestment banks. /usinesses that make investments, either directly or via a captive fund !nvestment trusts, includin real estate investment trusts

#utual funds, hed e funds, and other funds, ownership of which may or may not be publicly traded +these funds typically pool money raised from their owner)subscribers to invest in securities, Soverei n wealth funds Co##o$it M%r&et is an or ani0ed traders1 e"chan e in which standardi0ed, raded products are bou ht and sold. 2orldwide, there are 34 ma&or commodity e"chan es that trade over 56 commodities, ran in from wheat and cotton to silver and oil. #ost tradin is done in futures contracts, that is, a reements to deliver oods at a set time in the future for a price established at the time of the a reement.

Tradin

of S7P 899 and other financial futures has broken down some of the

barriers that once separated stock, bond, and commodity markets and made it easier for
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investors to hed e their stock investments. -ritics char e that the futures tradin commodity markets in -hica o have made stock prices more volatile.

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The -hica o /oard of Trade is the lar est futures and options e"chan e in the :nited States, the lar est in the world is ;ure", an electronic ;uropean e"chan e. T !es o" tr%$ers in % $eriv%tives #%r&et: He$'ers: $ed ers are those who protect themselves from the risk associated with the price of an asset by usin derivatives. ' person keeps a close watch upon the prices discovered in tradin and when the comfortable price is reflected accordin to his wants, he sells futures contracts. !n this way he ets an assured fi"ed price of his produce. !n eneral, hed ers use futures for protection a ainst adverse future price movements in the underlyin cash commodity. $ed ers are often businesses, or individuals, who at one point or another deal in the underlyin cash commodity. Take an e"ample* ' $ed er pay more to the farmer or dealer of a produce if its prices o up. For protection a ainst hi her prices of the produce, he hed es the risk e"posure by buyin enou h future contracts of the produce to cover the amount of produce he e"pects to buy. Since cash and futures prices do tend to move in tandem, the futures position will profit if the price of the produce raise enou h to offset cash loss on the produce.

S!e()*%tors: Speculators are some what like a middle man. They are never interested in actual owin the commodity. They will &ust buy from one end and sell it to the other in anticipation of future price movements. They actually bet on the future movement in the price of an asset. They are the second ma&or roup of futures players. These participants include independent floor traders and investors. They handle trades for their personal clients or brokera e firms. /uyin a futures contract in anticipation of price increases is known as < oin lon . Sellin a
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futures contract in anticipation of a price decrease is known as < oin short. Speculative participation in futures tradin has increased with the availability of alternative methods of participation. S!e()*%tors +%ve (ert%in %$v%nt%'es over ot+er invest#ents t+e %re %s "o**o,s: !f the traders &ud ment is ood, he can make more money in the futures market faster because prices tend, on avera e, to chan e more (uickly than real estate or stock prices. Futures are hi hly levera ed investments. The trader puts up a small fraction of the value of the underlyin contract as mar in, yet he can ride on the full value of the contract as it moves up and down. The money he puts up is not a down payment on the underlyin contract, but a performance bond. The actual value of the contract is only e"chan ed on those rare occasions when delivery takes place. Ar-itr%tors: 'ccordin to dictionary definition, a person who has been officially chosen to make a decision between two people or roups who do not a ree is known as 'rbitrator. !n commodity market 'rbitrators are the person who takes the advanta e of a discrepancy between prices in two different markets. !f he finds future prices of a commodity ed in out with the cash price, he will take offsettin positions in both the markets to lock in a profit. #oreover the commodity futures investor is not char ed interest on the difference between mar in and the full contract value. Uses o" F)t)res M%r&ets: !n this chapter, the uses of futures markets, especially in connection with futures commodity and their possible uses for the farmers, traders, banks and others have been reviewed. He$'in': The hed er is a trader who enters the futures market in order to reduce a pre)e"istin risk position. $avin a position does not mean that the trader must actually own a commodity.
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'n individual or a firm who anticipates the need for a certain commodity in the future or a person who plans to ac(uire a certain commodity later also has a position in that commodity. !n many cases, the hed er has a certain hed in hori0on = the future date when the hed e will terminate. The hed e can be a lon hed e or a short hed e. !f the hed er buys futures contract to hed e, it will be a *on' +e$'e. For e"ample, a roller flourmill owner may like to lock)in the price of the wheat that he wants to purchase three months later by purchasin wheat futures. !f three months later the wheat prices rise, carryin futures prices alon with them, the flourmill owner will purchase wheat from the spot market at a hi her price. The loss that he may suffer in the cash market will be compensated by sale of futures at a hi her price. Similarly, a farmer can sell three) month futures at the prevailin price and lock)in his profits at that level. !f the prices fall, the loss suffered by the farmer in the cash market will be compensated by the profit that the farmer will earn by s(uarin the transaction in the futures market. !n practice, hed in solutions are not as neat as the ones described above. !n the above e"ample, the oods in (uestion were e"actly the same both in the cash and the futures market, the amounts purchased > sold in the cash market matched the futures contract amounts, and the hed in hori0ons of the farmer and the mill owner matched the delivery dates of the futures contracts. !t will be rare for all factors to match perfectly? they will differ in time span covered, the amount of commodity or the physical characteristics of the commodity that are traded in the cash and the futures markets. Such hed es are known as (ross-+e$'es. !n such cases, the hed er must trade the ri ht number and kind of futures contract to control the risk in hed ed positions as much as possible. There can be situations where the hed er does not have any definite hed in hori0on and may enter into what is known as ris&-#ini#i.in' +e$'e. The hed er has many incentives. Ta" is a ma&or incentive. !n an un)hed ed situation, the profits fluctuate widely and the person > firm may have to pay ta"es in the hi h profit years while he is not able to utili0e the ta" credits when he runs into losses. $ed in also serves to minimi0e the cost of financial distress. 2idely fluctuatin profits may drive many persons > firms to bankruptcy. !n an ideali0ed world with no transaction costs, which is inhabited by

<homo)economics this may not be a factor. !n the real world, bankruptcy involves avoidable human misery and prolon ed windin up procedures.

Ro*e o" S!e()*%tors: @erivative markets have lon been viewed with suspicion as speculators are the most visible players. 2e consider it appropriate to emphasi0e that functionin derivative markets will have speculators who need to be viewed from the point of view of their economic usefulness and who need to be re ulated with a view to preventin systemic instability. ' speculator is a trader who enters the futures market in search of profit and, by so doin , willin ly accepts increased risks. @ifferent types of speculators may be cate ori0ed by the len th of time they plan to hold a position. Traditionally, there are three kinds of speculators* scalpers, day traders and position traders. Scalpers time hori0on is the shortest, ran in from the ne"t few seconds to the ne"t few minutes and they make profits that may be only one or two ticks, the minimum allowable price movement. !f the prices do not move in the scalpers direction within a few minutes of assumin a position, the scalper will like to close the position and be in lookin for a new opportunity. !t is understood that scalpers do not o by the demand and supply positions of the underlyin commodity but act on the <sentiment. They enerate enormous amounts of transactions and are able to survive as they pay minimum transaction cost. /esides earnin profits for themselves, their main role is to provide li(uidity in the market. They provide a party willin to take the opposite side of a trade for other traders? hed ers know that their orders can be e"ecuted. /y actively tradin , they enerate price (uotations thereby allowin markets to

discover prices more effectively. /y competin for trades, they help close the bid)ask spread.
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@ay Traders close their position before the end of tradin each day. Their strate y is to uess the price movements on account of developments durin the day, includin announcement of overnment policies and release of data. Position Traders maintain overni ht positions, which may run into weeks or even months. They may hold outri ht positions in which they run hu e risks and may also earn bi profits. The more risk averse amon them assume spread positions which may involve commodities or

relative price movements in different contracts on the same underlyin

commodities which are closely related. !t is pertinent to e"amine whether hed ers need speculators. Theoretically, if there are sufficiently lar e numbers of short and lon hed ers, they may fulfill each others need and the speculators may have no role. $owever, in practice, there is always a mismatch between the time when the short and lon hed ers would approach the market and the speculators fill in this ap. /e%$in' (o##o$it #%r&ets o" ,or*$: Some of the leadin e"chan es of the world are Aew Bork #ercantile ;"chan e +AB#;C,, the London #etal ;"chan e +L#;, and the -hica o /oard of Trade +-/DT,. /e%$in' (o##o$it #%r&ets o" In$i%: The overnment has now allowed national commodity e"chan es, similar to the /S; 7 AS;, to come up and let them deal in commodity derivatives in an electronic tradin environment. These e"chan es are e"pected to offer a nation)wide anonymous, order driven? screen based tradin system for tradin . The Forward #arkets -ommission +F#-, will re ulate these e"chan es.

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INTRODUCTION TO THE INDUSTRY PROFI/E Co##o$it #%r&ets are markets where raw or primary products are e"chan ed.

These raw commodities are traded on re ulated commodities e"chan es, in which they are bou ht and sold in standardi0ed contracts.
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This article focuses on the history and current debates re ardin

lobal commodity markets. !t

covers physical product +food, metals, and electricity, markets but not the ways that services, includin those of overnments, nor investment, nor debt, can be seen as a commodity. 'rticles on reinsurance markets, stock markets, bond markets and currency markets cover those concerns separately and in more depth. Dne focus of this article is the relationship between simple commodity money and the more comple" instruments offered in the commodity markets. 1. Histor The modern commodity markets have their roots in the tradin of a ricultural

products. 2hile wheat and corn, cattle and pi s, were widely traded usin standard instruments in the E5th century in the :nited States, other basic foodstuffs such as soybeans were only added (uite recently in most markets. For a commodity market to be established there must be very broad consensus on the variations in the product that make it acceptable for one purpose or another. The economic impact of the development of commodity markets is hard to overestimate. Throu h the E5th century Fthe e"chan es became effective spokesmen for, and innovators of, improvements in transportation, warehousin , and financin , which paved the way to e"panded interstate and international trade.G

E%r* +istor o" (o##o$it #%r&ets $istorically, datin from ancient Sumerian use of sheep or oats, other peoples usin pi s, rare seashells, or other items as commodity money, people have sou ht ways to standardi0e and trade contracts in the delivery of such items, to render trade itself more smooth and predictable. -ommodity money and commodity markets in a crude early form are believed to have ori inated in Sumer where small baked clay tokens in the shape of sheep or oats were
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used in trade. Sealed in clay vessels with a certain number of such tokens, with that number written on the outside, they represented a promise to deliver that number. This made them a form of commodity money ) more than an !.D.:. but less than a uarantee by a nation)state or bank. $owever, they were also known to contain promises of time and date of delivery ) this made them like a modern futures contract. He ardless of the details, it was only possible to verify the number of tokens inside by shakin the vessel or by breakin it, at which point the number or terms written on the outside became sub&ect to doubt. ;ventually the tokens disappeared, but the contracts remained on flat tablets. This represented the first system of commodity accountin . -lassical civili0ations built comple" lobal markets tradin old or silver for spices,

cloth, wood and weapons, most of which had standards of (uality and timeliness. -onsiderin the many ha0ards of climate, piracy, theft and abuse of military fiat by rulers of kin doms alon the trade routes, it was a ma&or focus of these civili0ations to keep markets open and tradin in these scarce commodities. Heputation and clearin became central concerns, and the states which could handle them most effectively became very powerful empires, trusted by many peoples to mana e and mediate trade and commerce. 0. Si.e o" t+e #%r&et The tradin of commodities consists of direct physical tradin and derivatives

tradin . ;"chan e traded commodities have seen an upturn in the volume of tradin since the start of the decade. This was lar ely a result of the rowin attraction of commodities as an asset class and a proliferation of investment options which has made it easier to access this market. The lobal volume of commodities contracts traded on e"chan es increased by a fifth in I9E9, and a half since I994, to around I.8 billion million contracts. @urin the three years up to the end of I9E9, lobal physical e"ports of commodities fell by IJ, while the outstandin value of DT- commodities derivatives declined by two)thirds as investors reduced risk followin a five)fold increase in value outstandin in the previous three years. Tradin on e"chan es in -hina and !ndia has ained in importance in recent years due to their emer ence
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as si nificant commodities consumers and producers. -hina accounted for more than 69J of e"chan e)traded commodities in I995, up on its 39J share in the previous year. -ommodity assets under mana ement more than doubled between I994 and I9E9 to nearly KL49bn. !nflows into the sector totalled over K69bn in I9E9, the second hi hest year on record, down from the record KMIbn allocated to commodities funds in the previous year. The bulk of funds went into precious metals and ener y products. The rowth in prices of many commodities in I9E9 contributed to the increase in the value of commodities funds under mana ement.

1. Co##o$it Tr%$in' 1.1. S!ot tr%$in' Spot tradin is any transaction where delivery either takes place immediately, or with a minimum la between the trade and delivery due to technical constraints. Spot tradin normally involves visual inspection of the commodity or a sample of the commodity, and is carried out in markets such as wholesale markets. -ommodity markets, on the other hand, re(uire the e"istence of a reed standards so that trades can be made without visual inspection. 1.0. For,%r$ (ontr%(ts ' forward contract is an a reement between two parties to e"chan e at some fi"ed future date a iven (uantity of a commodity for a price defined today. The fi"ed price today is known as the forward price. 1.1. F)t)res (ontr%(ts

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' futures contract has the same transacted throu h a futures e"chan e.

eneral features as a forward contract but is

-ommodity and futures contracts are based on whats termed forward contracts. ;arly on these forward contracts N a reements to buy now, pay and deliver later N were used as a way of ettin products from producer to the consumer. These typically were only for food and a ricultural products. Forward contracts have evolved and have been standardi0ed into what we know today as futures contracts. 'lthou h more comple" today, early forward contracts for e"ample, were used for rice in seventeenth century Oapan. #odern forward, or futures a reements be an in -hica o in the E439s, with the appearance of the railroads. -hica o, bein centrally located, emer ed as the hub between #idwestern farmers and producers and the east coast consumer population centers. !n essence, a futures contract is a standardi0ed forward contract in which the buyer and the seller accept the terms in re ards to product, rade, (uantity and location and are only free to ne otiate the price. 1.2. He$'in' $ed in , a common practice of farmin cooperatives insures a ainst a poor harvest by purchasin futures contracts in the same commodity. !f the cooperative has si nificantly less of its product to sell due to weather or insects, it makes up for that loss with a profit on the markets, since the overall supply of the crop is short everywhere that suffered the same conditions. 1.3. De*iver %n$ (on$ition ')%r%ntees !n addition, delivery day, method of settlement and delivery point must all be specified. Typically, tradin must end two +or more, business days prior to the delivery day, so that the routin of the shipment can be finali0ed via ship or rail, and payment can be settled when the contract arrives at any delivery point. 2. St%n$%r$i.%tion
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:.S. soybean futures, for e"ample, are of standard rade if they are FG#D or a mi"ture of G#D and Aon)G#D Ao. I yellow soybeans of !ndiana, Dhio and #ichi an ori in produced in the :.S.'. +Aon)screened, stored in silo,,F and of deliverable rade if they are FG#D or a mi"ture of G#D and Aon)G#D Ao. I yellow soybeans of !owa, !llinois and 2isconsin ori in produced in the :.S.'. +Aon)screened, stored in silo,.F Aote the distinction between states, and the need to clearly mention their status as G#D +Genetically #odified Dr anism, which makes them unacceptable to most or anic food buyers. Similar specifications apply for cotton, oran e &uice, cocoa, su ar, wheat, corn, barley, pork bellies, milk, feedstuffs, fruits, ve etables, other rains, other beans, hay, other livestock, meats, poultry, e s, or any other commodity which is so traded. 3. Re')*%tion o" (o##o$it #%r&ets !n the :nited States, the principal re ulator of commodity and futures markets is the -ommodity Futures Tradin -ommission but it is the Aational Futures 'ssociation that enforces rules and re ulations put forth by the -FT-. 3.1. Oi* /uildin on the infrastructure and credit and settlement networks established for food and precious metals, many such markets have proliferated drastically in the late I9th century. Dil was the first form of ener y so widely traded, and the fluctuations in the oil markets are of particular political interest. Some commodity market speculation is directly related to the stability of certain states, e. ., durin the Persian Gulf 2ar, speculation on the survival of the re ime of Saddam $ussein in !ra(. Similar political stability concerns have from time to time driven the price of oil. The oil market is an e"ception. #ost markets are not so tied to the politics of volatile re ions ) even natural as tends to be more stable, as it is not traded across oceans by tanker as e"tensively.
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3.0 .Co##o$it #%r&ets %n$ !rote(tionis# @evelopin currencies, countries +democratic or not, have been moved to harden their #onetary Fund rules, &oin the 2orld Trade

accept !nternational

Dr ani0ation +2TD,, and submit to a broad re ime of reforms that amount to a hed e a ainst bein isolated. -hina1s entry into the 2TD si naled the end of truly isolated nations entirely mana in their own currency and affairs. The need for stable currency and predictable clearin and rules)based handlin of trade disputes, has led to lobal trade he emony ) many nations hed in on a lobal scale a ainst each other1s anticipated protectionism, were they to fail to &oin the 2TD. There are si ns, however, that this re ime is far from perfect. :.S. trade sanctions a ainst -anadian softwood lumber +within A'FT', and forei n steel +e"cept for A'FT' partners -anada and #e"ico, in I99I si naled a shift in policy towards a tou her re ime perhaps more driven by political concerns ) &obs, industrial policy, even sustainable forestry and lo in practices.

3.1. Co##o$it E4(+%n'es ' brief description of commodity e"chan es is those which trade in particular commodities, ne lectin the trade of securities, stock inde" futures and options etc. !n the middle of E5th century in the :nited States, businessmen be an or ani0in market forums to make the buyin and establish and sellin rules of commodities easier. These central of business. marketplaces provided a place for buyers and sellers to meet, set (uality and (uantity standards, ' ricultural commodities were mostly traded but as lon as there are buyers and sellers, any commodity can be traded. !n E4MI, a roup of #anhattan dairy merchants ot to ether to brin chaotic condition in Aew Bork market to a system in terms of stora e, pricin , and transfer of a ricultural products. !n E5LL, durin the Great @epression, the -ommodity ;"chan e, !nc. was

established in Aew Bork throu h the mer er of four small e"chan es = the Aational #etal
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;"chan e, the Hubber ;"chan e of Aew Bork, the Aational Haw Silk ;"chan e, and the Aew Bork $ide ;"chan e. The ma&or commodity markets are in the :nited %in dom and in the :S'. !n !ndia there are I8 reco ni0ed future e"chan es, of which there are three national level multi) commodity e"chan es. 'fter a ap of almost three decades, Government of !ndia has allowed forward transactions in commodities throu h Dnline -ommodity ;"chan es, a modification of traditional business known as 'dhat and .ayda .yapar to facilitate better risk covera e and delivery of commodities. The three e"chan es are*

N%tion%* Co##o$it 5 Deriv%tives E4(+%n'e /i#ite$ 6NCDE78 M)*ti Co##o$it E4(+%n'e o" In$i% /i#ite$ 6MC78 N%tion%* M)*ti-Co##o$it E4(+%n'e o" In$i% /i#ite$ 6NMCEI/8

'll the e"chan es have been set up under overall control of Forward #arket -ommission +F#-, of Government of !ndia. 9. N%tion%* Co##o$it 5 Deriv%tives E4(+%n'e /i#ite$ 6NCDE78 Aational -ommodity 7 @erivatives ;"chan e Limited +A-@;C, located in #umbai is a public limited company incorporated on 'pril IL, I99L under the -ompanies 'ct, E586 and had commenced its operations on @ecember E8, I99L.This is the only commodity e"chan e in the country promoted by national level institutions. !t is promoted by !-!-! /ank Limited, Life !nsurance -orporation of !ndia +L!-,, Aational /ank for ' riculture and Hural @evelopment +A'/'H@, and Aational Stock ;"chan e of !ndia Limited +AS;,. !t is a professionally mana ed online multi commodity e"chan e. A-@;C is re ulated by Forward #arket -ommission and is sub&ected to various laws of the land like the -ompanies 'ct, Stamp 'ct, -ontracts 'ct, Forward -ommission +He ulation, 'ct and various other le islations. M. M)*ti Co##o$it E4(+%n'e o" In$i% /i#ite$ 6MC78 $ead(uartered in #umbai #ulti -ommodity ;"chan e of !ndia Limited +#-C,, is an independent and de) mutualised e"chan e with a permanent reco nition from Government
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of !ndia. %ey shareholders of #-C are Financial Technolo ies +!ndia, Ltd., State /ank of !ndia, :nion /ank of !ndia, -orporation /ank, /ank of !ndia and -anara /ank. #-C facilitates online tradin , clearin and settlement operations for commodity futures markets across the country. #-C started offerin trade in Aovember I99L and has built strate ic alliances with /ombay /ullion 'ssociation, /ombay #etal ;"chan e, Solvent ;"tractors 'ssociation of !ndia, Pulses !mporters 'ssociation and Shetkari San hatana. :. N%tion%* M)*ti-Co##o$it E4(+%n'e o" In$i% /i#ite$ 6NMCEI/8 Aational #ulti -ommodity ;"chan e of !ndia Limited +A#-;!L, is the first de) mutuali0ed, ;lectronic #ulti)-ommodity ;"chan e in !ndia. Dn I8th Ouly, I99E, it was ranted approval by the Government to or ani0e tradin in the edible oil comple". !t has operationalised from Aovember I6, I99I. !t is bein !t ot its reco nition in Dctober I99I. -ommodity e"chan e in !ndia plays an important role where the prices of any commodity are not fi"ed, in an or ani0ed way. ;arlier only the buyer of produce and its seller in the market &ud ed upon the prices. Dthers never had a say. Today, commodity e"chan es are purely speculative in nature. /efore discoverin the price, they reach to the producers, end) users, and even the retail investors, at a rassroots level. !t brin s a price transparency and risk mana ement in the vital market. ' bi difference between a typical auction, where a sin le auctioneer announces the bids and the ;"chan e is that people are not only competin to buy but also to sell. /y ;"chan e rules and by law, no one can bid under a hi her bid, and no one can offer to sell hi her than someone elses lower offer. That keeps the market as efficient as possible, and keeps the traders on their toes to make sure no one ets the purchase or sale before they do. supported by -entral 2arehousin -orporation Ltd., Gu&arat State ' ricultural #arketin /oard and Aeptune Dverseas Limited.

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CHAPTER-II 0.1. INTRODUCTION TO THE COMPANY PROFI/E: S+%re &+%n "in%n(i%* servi(e Pvt. /t$. Share khan is !ndias leadin online retail brokin house. Launched on February 4, I999 as an online tradin portal, Share khan has today a pan)!ndia presence with over E,8I5 outlets servin 589,999 customers across 389 cities. !t also has international presence throu h its branches in the :'; and Dman. Share khan offers services like portfolio mana ement, trade e"ecution in e(uities, futures 7 options, commodities, and distribution of mutual funds, insurance and structured products. These services are backed by (uality investment advice from an e"perienced research team which offers investment and tradin ideas based on fundamental and technical research respectively, market related news, statistical information on e(uities, commodities, mutual funds, !PDs and much more. Sharekhan is a member of the /ombay Stock ;"chan e, the Aational Stock ;"chan e and the countrys two leadin commodity e"chan es, the A-@;C and #-C. Sharekhan is also re istered as a depository participant with Aational Securities @epository and -entral @epository Services. Sharekhan has set cate ory leadership throu h pioneerin initiatives like Trade Ti er, an !nternet)based e"ecutable
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application that emulates a broker terminal besides providin information and tools relevant to day traders. !ts second initiative, First Step, is tar eted at empowerin the first)time investors. Sharekhan has also set its lobal footprint throu h the P!ndia FirstG initiative, a series of seminars conducted by Sharekhan to help the non)resident !ndians participate and benefit from the hu e investment opportunities in !ndia.

SHARE;HAN TIME/INE

0.0 TOP MANAGEMENT: Mr. T%r)n S+%+ CEO< S+%re&+%n ' Science raduate from St. Caviers -olle e, #umbai, Tarun Shah started his professional life in sales and marketin in a chemicals company. $is hands)on approach and rich e"perience in sales led him to hi her challen es that the capital markets provided. !n E54M, #r Shah &oined SS%!, a brokera e firm with over five decades of le endary service to its credit. The capital market at that time was under oin a sea chan e in terms of character and SS%! under the vision and uidance of Shripal #orakhia and the commitment and hard work of #r Shah was able to chan e and adopt the new business practices to achieve a si nificant rowth in a competitive environment. Since then SS%! has achieved rowth in each of its businesses* !nstitutional brokin , retail brokin and corporate Finance. Startin with the retail brokin business of SS%! in /ombay and developin a sub)broker network across the
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country, #r Shah was also instrumental in successfully settin up the !nstitutional Tradin @esk of SS%!. 'cceptin new challen es is a way of life for #r Shah. To ensure that SS%!s foray into retail stock brokin business throu h Sharekhan is as successful as every other venture of SS%!, #r Shah moved in to spearhead this new effort as the -;D of Sharekhan, the retail brokin arm of SS%!. Mr. =%i$ee! Aror% Dire(tor< Pro$)(t Deve*o!#ent Oaideep 'rora, completed his /.Tech from !!T +%anpur, and his PG@# from !!#, %olkata.$e worked with !-!-! for 4 years where his work spanned a amut of functions, which included pro&ect finance, e(uity sales and brokera e, investments etc. @urin his tenure there he set up and headed the !nstitutional ;(uity /rokera e @esk at !-!-! Securities 7 Finance -o. Ltd. #r 'rora &oined Sharekhan in Oune I999 as the head of the Product development division. ' year later he took over the reins of the online business of Sharekhan. 't present #r 'roras responsibilities include spearheadin Sharekhans online foray as well as its overall customer ac(uisition effort. Mr. S+%n&er V%i*% % Dire(tor< O!er%tions< Fin%n(e %n$ /e'%* F)n(tions ' raduate in -ommerce from the :niversity of #an alore and an 'ssociate of The #ember of the !nstitute of -hartered 'ccountants of !ndia, Shankar .ailaya heads the operations, finance and le al functions of Sharekhan. $e is responsible for settlements, depository operations, risk and compliance, re ulatory and other le al commitments, and treasury.

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#r..ailaya has mana ed Sharekhans brokin operations throu h the most turbulent times in the aftermath of the securities scam in E55I and successfully steered the company clear of a flurry of bad papers that hit the market durin E553)58. 0.1 PRODUCTS 5 SERVICES: I.FIRST STEP: /et t+e e4!erts ')i$e o)> 'lways wanted help on what the stock market is all aboutQ /een wonderin about how all this worksQ 2ell, you don1t need to fret any more ) the Sharekhan First Step is a brand new pro ram desi ned especially for those who are new to investin in shares. 'll you have to do is open a Sharekhan First Step account and we1ll uide you throu h the investin process. -lick here to learn more about the Sharekhan First Step pro ram. /oo&in' "or Ans,ers? @o you have a lot of unanswered (uestions about stocks and the stock marketQ 2e1ve created special information tools for you, to help answer any (ueries you may have. 'll you have to do is si n up to receive all the tools you need to understand the markets and invest in sharesR -lick here to et a free FirstStep !nformation %it. @+%t $oes t+e !ro'r%# (onsist o"? !n the comple" world of investin in shares in !ndia, interested be inners like you didn1t have any place they could start out from. This is why we started the First Step pro ram ) to assist and uide new investors when they take their first steps into the world of investin in shares. This pro ram is e"plicitly desi ned for be inners. Bou will not feel unintelli ent when askin (uestions like F2ho owns the Stock #arketQF or F2hat is a stock)splitQF since our people are trained to assist those takin their first step in the market. II.C/ASSIC ACCOUNT:

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H%ss*e Free Investin'< On*ine< An ti#e An ,+ere Presentin the easiest way to control your investments with a click of a button. 2ith live stock prices, online cash transfer and instant order e"ecution you et complete freedom from borin paper)work. Dur friendly customer service representatives are accessible via toll) free phone, email and live online chat Proven Rese%r(+< Ti#e* A$vi(e. Get live analysis before, durin 7 after market hours. From daily intra)day calls to lon )term stock recommendations, you will et timely advice with well)defined profit tar ets. !n addition, you can invest in the companies that form part of our Top Picks research basket III.U/TIMATE ON/INE TRADING P/ATFORM-TRADE TIGER: A$v%nt%'es: #ultiple ;"chan e !nternatinational #arket 2atch I3 $our #arket 'ccess Dne -lick Filter :nlimited -harts -reate your own technical rules for tradin ' sin le Tradin Screen for all se ments Live Streamin Suotes 'ccess all Tradin -alls 'dvanced -hartin features Fe%t)res:
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E. ' sin le platform for multiple e"chan e /S; 7 AS; +-ash 7 F7D,, #-C, A-@;C, #utual Funds, !PDs. I. #ultiple #arket 2atch available on Sin le Screen. L. #ultiple -harts with Tick by Tick !ntraday and ;nd of @ay -hartin powered with various Studies. 3. Graph Studies include 'vera e, /and) /ollin er, %now Sure Thin , #'-@, HS!, etc. 8. 'pply studies such as .ertical, $ori0ontal, Trend, Hetracement 7 Free lines. 6. :ser can save his own defined screen as well as raph template that is, savin the layout for future use. M. :ser)defined alert settin s on an input Stock Price tri er. 4. Tools available to au e market such as Tick Suery, Ticker, #arket Summary, 'ction 2atch, Dption Premium -alculator, Span -alculator. 5. Shortcut key for F'ST access to order placements 7 reports.

E9. Dnline fund transfer activated with EI /anks. IV.MUTUA/ FUND INVESTMENT: M)t)%* F)n$s On*ine Free$o# 5 F*e4i-i*it : !nvest in #utual Funds online with your Sharekhan 'ccount. Get access to a number of e"clusive mutual fund research reports and ability to invest in Fle"ible Systematic !nvestment Plans. Dr &ust download the P@F of the application form and send it to the nearest Sharekhan ShareShop in your city. 'lternatively, &ust call up our toll)free customer care number, and we will dispatch the application form. Aene"it "ro# tr%$in' in M)t)%* F)n$s On*ine Freedom from fillin forms Set up S!Ps and Fle"i)S!Ps Get access to the latest, free research reports with analysis of #utual Fund schemes.
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V.PORTFO/IO MANAGEMENT SERVICES Post s%*es servi(es: @etailed portfolio reports are available at timely basis like. !nvestment Summary Portfolio $oldin Transaction Statement /ank /ook Heali0ed>:nreali0ed Gain Loss @etails Fees -har ed Statement +@ebit Aote, -orporate /enefit +/onus > @ividend > Hi ht issues declared, etc., Fund #ana er1s Heport @edicated -lient Servicin Team to address your (ueries.

@+ PMS? 1. /e%ve it to t+e E4!erts @+oBs o)r Mone E4!ert?

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Bour health, your accounts, your le al matters = you have professionals to mana e the entire thin that are most important to you. @o you have an e"pert to mana e your hard) earned moneyQ Share khan Portfolio #ana ement Services +P#S, use the e"pert mana ement skills of our independent Fund #ana ers, backed by the e"pertise of L8 Financial Hesearch 'nalysts, to et the best possible returns for you. 0. Dis(i!*ine$ A!!ro%(+ 2e are investin the funds and not &ust allocatin to the sectors to achieve decent rowth of the corpus. 2e diversify the portfolio to reduce the risk. 2e would like to be in stocks with fewer burdens on /alance sheet and ood earnin visibility. 1. Ti#e is Mone Few Bears a o you never ima ined that you would have so much money. 'nd never ima ined that you would have so little Time. Success has e"torted a fee from you* Time Leavin you very few hours for all the thin s you think are important. 2hich is why at Sharekhan Portfolio #ana ement Services, we do not e"pect you to invest your precious time.

2. Co#!*ete Tr%ns!%ren( The third advanta e of P#S is the transparent fee structure. 2ith transparent fees and '#char es there are no hidden costs. 3. Str)(t)r%** Aetter

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Portfolio mana ement services re istered with S;/! are permitted to e"it or enter E99J at any time as lon as they dont levera e and dont do intraday tradin . The second bi advanta e of P#S services is that they can hold fewer stocks and be more a ressive in their stance towards stocks or sectors. The third advanta e of P#S is the transparent fee structure. 2ith flat fees and '#- char es there are no hidden costs. 9. Ris& Dis(*os)re Do()#ent S+%re&+%n /i#ite$ PORTFO/IO MANAGEMENT SERVICES C DISC/OSURE DOCUMENT i. This @ocument has been updated up to 11st M%r(+< 0D11 and has been filed with the Securities and ;"chan e /oard of !ndia +S;/!, alon He ulations, E55L. ii. The purpose of this @ocument is to provide essential information about the portfolio services in a manner to assist and enable you in makin informed decision for en a in us as a Portfolio #ana er. iii. This document ives necessary information about us as <Portfolio #ana er re(uired by you as an investor before investin . Bou are advised to read this document and retain this document for future reference. iv. The name, phone number, e)mail address of the principal officer desi nated by us as portfolio mana er is as follows* Aame of the principal Shankar .ailaya Phone 9II)6EE89999, 6M34E45M officer number ;)mail address shankarTsharekhan.com? kunalTsharekhan.com VI.COMMODITIES:
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with the certificate in

the prescribed format in terms of He ulation E3 of the S;/! +Portfolio #ana ers,

Convenience Redefined with Online Commodities Trading 2ith a Share khan online tradin account, you can buy and sell commodities in an instantR 'nytime you like and from anywhere you likeR 'lso, Get access to cuttin ed e analysis, latest research reports and the most relevant news on -ommodities ri ht in your tradin terminal. Aene"it "ro# On*ine Tr%$in' in Co##o$ities Freedom from Paperwork Dnline orders on the phone !nstant credit and money Transfer Timely advice and research reports Trade from any net enabled P !nformation and Price alerts 'fter hour orders VII./EARN TO TRADE: Share khan, your own uide to the financial &un le, in a step to boost trader

education has partnered with Dnline Tradin 'cademy to provide (uality trader education. 's our educational partner, Dnline Tradin 'cademy will provide professional

education to traders who want to succeed in any market, and any asset class. 2ith L3 centers across the lobe and rowin , Dnline Tradin 'cademy is the world1s most trusted name in professional trader education. 't Dnline Tradin 'cademy, our constant endeavor is to provide trader education for every need and e"perience level. 2e provide traders with*)

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2orld)class learnin e"perience $i hly skilled professional traders as mentors Live Tradin = in our Professional Trader = !ndia course Free retakes -ourses that pay for themselves 0.2 SHARE;HAN RESEARCH: 1. FUNDAMENTA/: Sto(& I$e%s: 'imed at investors. Presents our stock pick and discusses reasons for the same. !t comes with a price tar et and a time frame over which ains can be materiali0ed InvestorsB E e: ' daily fundamental newsletter to help you take ri ht decisions. -ontents .iews on most important news reports of the day Hecos usin the bottom)up approach Stock :pdate reports Special reports Dther reports S+%re &+%n To! Pi(&s: ' model portfolio comprisin of EI stocks for investors with a hori0on of more than a year. Portfolio is updated with new stocks replacin e"istin stocks as and when re(uired to optimi0e performance. Vie, Point: .iews on companies we don1t track. .iews on economy, policy chan es and overnment initiatives S!e(i%* Re!orts: Speciali0ed reports on uni(ue market opportunities.

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Heports like ) Selectivity pays monetary policy review, $urricane ains, @ividend yield stocks, etc. IPO F*%s+: Heport on forthcomin !PDs ) only those !PDs which are covered by our research team Se(tor Re!orts: .iew on various sectors and its constituents +; . su ar and /alrampur -hini, %-P Su ar !ndustries, :pper Gan es, M%r&et O)t*oo&: /i)monthly Fundamental view on the market. 0. TECHNICA/: P)nter C%**: ' daily view on how the market and ma&or indices are e"pected to trade for the day the closest support and resistance levels are provided to help traders take decisions. -alls created for tomorrow* These calls are for a one)day period and are created today to buy in cash or futures. For sellin tomorrow at the tar et price. /uy with a stop loss or s(uare off by L.L9pm the day after. Smart -harts* !t presents the best positional tradin calls in the market. ;ach call is introduced alon with a Heco +Go Lon >Go Short,, a price tar et, a stop loss and a chart depictin the trend in the stock. Deriv%tive C%**s: Toolkit for derivative traders. 1. MUTUA/ FUND: M)t)%* F)n$ In$)str U!$%te: This report provides all the latest news in the industry like fund flows, investment trends, performance of various cate ories of e(uity funds, performance in sector funds etc. To! SIP F)n$ Pi(&s: This report provides details on the S!P performances of various funds across different cate ories for various time periods. Top S!P fund picks are provided in Lar e)
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cap funds, #ulti)cap funds, #id)cap funds and ;LSS funds cate ories, after analy0in risk return parameters. To! EE)it F)n$ Pi(&s: This report provides details of the Top Funds in Lar e)cap funds, #id)cap Funds, #ulti)cap funds, balanced funds, thematic funds, ;LSS funds etc. Take an informed decision, dependin on your risk takin appetite, and stay ahead of the ups and downs of the market. To! De-t F)n$ Pi(&s: This report provides details of the Top Funds in #onthly income plans, !ncome funds, Short)term debt funds, :ltra short term funds, Floatin rate funds, Li(uid funds, Gilt funds etc. 2. COMMODITY: Co##o$ities A)..: @aily newsletter on commodities fundamentals Rivetin' Met%*s: @aily newsletter with Technical calls on metals E%'*e E e 6Co##o$ities8: @aily newsletter with technical calls on commodities CHAPTER III REVIE@ OF /ITERATURE 1.1 A((or$in' to S%+%$ev%n< t+e S%''in' A'ri()*t)r%* Co##o$it E4(+%n'es - Gro,t+ Constr%ints %n$ Reviv%* Po*i( O!tions: P-ommodity derivatives have a crucial role to play in mana in price risk especially in a riculture dominated economies. $owever, they have been utili0ed in a very limited scale in !ndia. 's lon as prices of many commodities are restrained to certain e"tent by Government intervention in production, supply and distribution, forwards and futures markets for hed in rice risk in those commodities have only limited practical relevance. ' review of the nature of institutional and policy level constraints facin this se ment calls for more focused and pra matic approach from overnment, the re ulator and the e"chan es for makin mana ementG. 1.0 A((or$in' to Peter Gi--on D%nis+ Instit)te "or Intern%tion%* St)$ies< Co!en+%'en. T+e
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the a ricultural futures markets a vibrant se ment for risk

(o##o$it E)estion: ne, t+in&in' on o*$ !ro-*e#s - FThis paper reviews more and less mainstream policy options in relation to the Ucommodity (uestion in the li ht both of its classical definition and of the emer in concern about oli opoly. !t be ins by updatin the evidence concernin commodity price decline and volatility, and e"aminin the implications of these phenomena for macro)economic performance and livelihoods in producin countriesG. 1.1 A((or$in' to Ste!+en Cr%i'<GT+e Se*"-Re')*%tion o" Co##o$it E4(+%n'es: T+e C%se o" M%r&et M%ni!)*%tion.G-FThe paper deals with Price dissemination that every #andy becomes a monopoly to the local producers, especially once they come to the market. Farmers typically face a short period between the time that they harvest and the time that they can sell the cropG. 1.2 A((or$in' to ;%t+erine D)s%&< F)t)res Tr%$in' %n$ Investor Ret)rns: An Investi'%tion o" Co##o$it M%r&et Ris& Pre#i)#s. PThe lon )standin controversy over whether speculators in a futures market earn a risk premium is analy0ed within the conte"t of the capital asset pricin model recently developed by harpe, Lintner, and others. :nder that approach the risk premium re(uired on a futures contract should depend not on the variability of prices but on the e"tent to which the variations in prices are systematically related to variations in the return on total wealth. The systematic risk was estimated for a sample of wheat, corn, and soybean futures contracts over the period E58I to E56M and found to be close to 0ero in all three cases. 'vera e reali0ed holdin period returns on the contracts over the same period were close to 0eroG. 1.3 A((or$in' to S)s%n T+o#%s< A'ri()*t)r%* (o##o$it #%r&ets in In$i%-Po*i( iss)es "or 'ro,t+: PStren thenin institutions in spot and derivative markets for commodities is a necessary in redient of the liberali0ation process in a riculture, and can impact upon the lives of millions. n this paper, we describe the e"istin market desi n prevalent on both the spot and the futures markets. 2e show some evidence on the role played by the nascent futures markets in price discovery. 2e document the problems of both the spot and the futures markets. 2e offer three policy proposals* usin reference rates for stren thenin transparency, e"plorin a reater role for cash settlement, and treatin warehouse receipts as securitiesG.

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1.9 A((or$in' to N.S%t+is+ ;)#%r< Asst. Pro"essor 5 He%$< De!%rt#ent o" A)siness M%n%'e#ent. Vive&%n%n$% PG Co**e'e< ;%ri#n%'%r P'fter almost two years that commodity tradin is findin favor with !ndian investors and is been seen as a separate asset class with ood rowth opportunities. For diversification of portfolio beyond shares, fi"ed deposits and mutual funds, commodity tradin offers a ood option for lon )term investors and arbitra eurs and speculators. 'nd, now, with daily lobal volumes in commodity tradin touchin three times that of e(uities, tradin in commodities cannot be i nored by !ndian investors. Dnline commodity e"chan es need to revamp certain laws overnin futures in

commodities to make the markets more attractive. The national multi)commodity e"chan es have unitedly proposed to the overnment that in view of the rowth of the commodities market, forei n institutional investors, too, should be iven the o)ahead to invest in commodity futures in !ndia. Their entry will deepen and broad base the commodity futures market. 's a matter of fact, derivative instruments, such as futures, can help !ndia become a lobal tradin hub for select commodities. -ommodity tradin in !ndia is poised for a bi take)off in !ndia on the back of factors like lobal economic recovery and increasin demand from -hina for commodities. -onsiderin the hu e volatility witnessed in the e(uity markets recently with the Sense" touchin 6599 level commodities could add the re(uired 0in to investors1 portfolio. Therefore, it won1t be lon before the market sees the emer ence of a completely redefined set of retail investors. 1.H A((or$in' to C+)%< =ess H.< Gor$on Si(&< %n$ Ri(+%r$ S. @oo$,%r$ 61IID8. GDiversi" in' ,it+ Go*$ Sto(&sG PThe authors e"tend Oaffes +E545, study by e"aminin the relative investment benefits of investin in old e(uities versus old bullion durin the period September E5ME throu h @ecember E544. /y splittin their sample period into two sub periods, the authors show that the diversification benefits of old bullion are much more consistent than the diversification benefits of old e(uities. !n particular, they find that the beta of old e(uities more than doubled between the E5M9s and E549s, whereas the beta of old bullion remained lar ely unchan ed at appro"imately 0ero in both periods. Thus, the authors (uestion the diversification benefits of old e(uities, particularly over short investment hori0ons.G

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1.: A((or$in' to $e Roon< Fr%ns A.< T+eo E. NiJ#%n< %n$ C+ris Ve*$ 60DDD8. GHe$'in' Press)re E""e(ts in F)t)res M%r&ets " Oournal of Finance, P2e present a simple model implyin that futures risk premium depend on both own)market and cross)market hed in pressures. ;mpirical evidence from I9 futures markets, divided into four roups +financial, a ricultural, mineral, and currency, indicate that, after controllin for systematic risk, both the futures own hed in pressure and cross)hed in pressures from within the roup si nificantly affect futures returns. These effects remain si nificant after controllin for a measure of price pressure. Finally, we show that hed in pressure also contains e"planatory power for returns on the underlyin asset, as predicted by the model.G +p. E3LM,. 3.9 A((or$in' to D)s%&< ;%t+erine 61IH18. GF)t)res Tr%$in' %n$ Investor Ret)rns: An Investi'%tion o" Co##o$it M%r&et Ris& Pre#i)#s." Oournal of Political ;conomy, .ol. 4E, Ao. 6 +Aovember>@ecember,* EL4M)E396. PThe lon )standin controversy over whether speculators in a futures market earn a risk premium is analy0ed within the conte"t of the capital asset pricin model recently developed by Sharpe, Linter, and others. :nder that approach the risk premium re(uired on a futures contract should depend not on the variability of prices but on the e"tent to which the variations in prices are systematically related to variations in the return on total wealth. The systematic risk was estimated for a sample of wheat, corn, and soybean futures contracts over the period E58I to E56M and found to be close to 0ero in all three cases. 'vera e reali0ed holdin period returns on the contracts over the same period were close to 0ero.G +p. EL4M, 1.1D. A((or$in' to E$,%r$s< Fr%n&*in R.< %n$ =i## /ie, 61III8. GM%n%'e$ Co##o$it F)t)resG =o)rn%* o" F)t)res M%r&ets< Vo*. 1I< No. 2 6=)ne8: 1HH-211. PThe authors e"amine the performance of mana ed commodity futures as represented by public commodity funds, commodity pool operators, and commodity tradin advisers. The authors indicate that the costs associated with investin in -PDs and -T's may be (uite lar e because the funds may incur si nificant transaction costs, which are added to a number of fees char ed to investors, includin mana ement fees, profit) based incentive fees, and loads. @espite these relatively hi h costs, the authors find that the net return to commodity fund investments is fre(uently relatively attractive. ;ach individual fund, however, has relatively volatile returns, so the stand)alone performance of mana ed commodity futures is poor relative to traditional investments. The authors find that, in eneral, addin a portfolio of -PDs or -T's to a traditional investment portfolio enhances portfolio performance. !n addition,
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the authors compare the returns to -T's and -PDs with the returns to the passive Heuters>Oefferies -H/ !nde" and the #L#. The #L# is a dynamic inde" based on momentum in commodity prices, which is consistent with the strate y followed by many mana ed futures funds. The authors find a si nificant positive relationship between the returns to mana ed futures and the #L# but no si nificant relationship between mana ed funds and the -H/. This findin is consistent with the contention that the #L# provides a eneral indicator of the performance of mana ed futures. The authors also find, however, that neither the #L# nor the -H/ supplants mana ed futures in their derived efficient portfolios.G

CHAPTER IV RESEARCH METHODO/OGY The methodolo y of research indicates the eneral pattern of or ani0in the procedure of atherin valid and reliable data for the problem under investi ations (Kothari, 1996). The methodolo y of this study includes the choice of the research approach, samplin techni(ue, development of the tool, data collection procedure and method of analysis based on the statement and ob&ectives of the study. Rese%r(+ %!!ro%(+
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The selection of the research approach is the basic procedure for the conduct of research. ' research approach tells the investi ator as to what data to collect and how to analy0e it. !t also su ests possible conclusion to be drawn from the data. The research approach refers to the investi ator overall plan for obtainin answers to the research (uestion and for testin the research hypothesis. !t spells out the strate ies that the investi ator adopts to develop information that is accurate, ob&ective and interpretable. !t is set of fle"ible uide spots desi ned to keep the investi ator in the ri ht direction. + Polit and Hungler, 1999). 2.1 OA=ECTIVES OF THE STUDY To study about the investors preferences towards commodity market in Share khan Financial Services Pvt. Ltd, Gobi. To find out very hi h preference of commodity market. To analy0e the various factors influencin investors preference on commodity market. To find out the investors awareness re ardin commodity market. To study about the investors acceptance level of rumors in commodity market. To find some su ested measures to improve the present level.

2.0 SCOPE OF THE STUDY !t assesses the preference of choosin the market by the respondents. The study helps us to know about the !nvestors preferences towards commodity market. !t helped to brin out various investment opportunities and preference in commodity market. The specific reason to why people preference commodity market one mode of investment and earnin hi h return

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2.1 RESEARCH DESIGN Hesearch desi n constitutes the blue print for the collection and analysis of the data. Hesearch desi n is essential as it facilitates the smooth sailin of various research operations so as to make the research as efficient as possible yieldin ma"imum information with minimum of effort, time, and money. F@ecisions re ardin DESCRIPTIVE RESEARCH: Des(ri!tive Rese%r(+ includes surveys and fact ) findin en(uiries of different what, when, how, how much by what means concernin ))-.H. %othari a research constitutes the research desi n.G

kinds of the ma&or purpose of descriptive research is description of the state of affairs as it e"ists at present. !n social science and business research we (uite often use the term e" post facto research for description research studies. SAMP/ING UNIT /usiness #en, Professionals, ;mployed personnel, others like $ouse wife etc. SAMP/E SIKE ' sample si0e of EI9 investors was selected for the study in the Gobi He ion. METHOD OF DATA CO//ECTION $ere the researcher mainly used primary data. A. PRIMARY DATA @ata are collected for the first time for a specific purpose in mind usin (uestionnaire method and interview method. A. SECONDARY DATA The secondary data was collected from the company Oournals, Heports, #a a0ines,
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the

!nternet and #aterials obtained from the commodity product in the re ional Dffice. 2.2 SAMP/ING TECHNILUE This samplin method involves purposive or deliberate selection of particular units of the universe for consultin a sample, which represents the universe. Non Pro-%-i*it - Convenien(e S%#!*in': 2hen population elements are selected for inclusion in the sample based on the ease of access it can be called convenience samplin 2.3 TOO/S FOR ANA/YSIS E. Simple Ao. of Hespondents in +J, analysis I. -hi)S(uare Test L. -orrelation 'nalysis 3. 2ei hted 'vera e 8. 'AD.' 1. SIMP/E NO.OF RESPONDENTS IN 6M8 ANA/YSIS Ao. of Hespondents in +J, analysis is a simple and effective method used for analy0in collect data. !t provides clear distribution of respondents responses. :sin this method we can et clear view of how customer respondents to a specific (uery distributed amon different options. No. o" Res!on$ents in 6M8 N 6N)#-er o" Res!on$entO Tot%* Res!on$ents8 7 1DD 0. CHI-SLUARE TEST The chi)s(uare test is an important test amon st the several tests of si nificant1. -hi) S(uare, symbolically written as VW +Pronounced as %i ) S(uare,, is a statistical measure used in the conte"t of samplin analysis for comparin a variance to a theoretical variance.
35

!t can also be used to make comparisons between theoretical populations and actual data when cate ories are used. Thus, the chi)s(uare test is applicable in lar e number of problems. The tests is, in fact, a techni(ue throu h the use of which it is possible for all researchers to +i, Test the oodness of fit? +ii,Test the si nificant of association between two attributes, and +iii, Test the homo eneity or the si nificance of population variance. PQ NR 6OiJ- EiJ8 Q / EiJ 2here, Di& X Dbserved fre(uency of the cell in ith row and &th column. ;i& X ;"pected fre(uency of the cell in ith row and &th column. 1. CORRE/ATION ANA/YSIS: !t is helps to determine the stren th of linear between the two variables C 7B. !n other words as to how stron ly are these two variables correlated. %arl Pearson, in E546 developed and inde" or co)efficient of these association in case where the relationship is a linear one. i.e. where the trend of the relationship can be described by a strai ht line. N S $4 $ C 6S $48 6S $ 8 r N -----------------------------------------TNS$4Q - 6S $48 Q TNS $ Q - 6S $ 8 Q 2. @EIGHTED AVERAGE: 2ei hted avera e may be defined as the avera e obtained multiplyin the various item in serious by certain values know as wei hted and the total of products so obtained is dividend by the total of wei hted.
36

@ei'+te$ Aver%'e 2here, 2) Ao. of Hespondents favorin in the opinion C) .alue of the score to the option. 3. ANOVA*

X 6 7@O @8

'nalysis of variance +'bbreviated as 'AD.', is an e"tremely useful techni(ue concernin researches in the field of economics, biolo y, education, psycholo y, sociolo y, business>industry in researches of several other disciplines. This techni(ue is used here since multiple sample cases are involved. The si nificance of the difference between the means of two samples can be &ud ed throu h either Y)test or T) Test but the difficulties arise when we happen to e"amine the si nificance of the difference amon st more than two sample means at the same time. The 'AD.' techni(ues enable us to perform this simultaneous test and as such are considered to be an important tool of analysis in the hands of a researcher. :sin this techni(ue, one can draw inferences about whether the samples have been drawn from populations havin the same mean. The essence of 'AD.' is that the total amount of variation in set of data is broken down into two types, that amount which can be attributed to chance and that amount which can be attributed to specific causes. T+e te(+niE)e invo*ves t+e "o**o,in' ste!s: E. The -orrelation factor +-.F, X +T, W > A @+ere< T X Grand Total A X Ao. Df observation I. Total SS ) +SS between -olumns Z SS /etween rows, X SS for residual or error .ariance
37

L. @e ree of freedom +d.f., can be worked out under* d.f. for total variance + c. r )E, X X X +c=E, +r=E, +c=E,+r=E, d.f.for variance between columns d.f. for variance between rows d.f. for residual variance 2here, c X Aumber of columns r X Aumber of rows 3. 'AD.' table can be setup in the usual fashion as shown below* So)r(e o" v%ri%tion S)# o" sE)%re SS De'ree o" "ree$o# 6$."8 Me%n SE)%re 6#s8 SS /etween -olumns > + c)E , [ + + Ti ,W > ni ,) +T,W>n,, +r=E, SS /etween rows > +r=E, +c=E, +r=E, SS Hesidual > +c=E, +r=E, #S between -olumns > #S residual

F-r%tio

/etween columns treatment

[ + + T& ,W > n& ,) +T,W>n,,

+ c)E ,

/etween Hows treatment

#S between rows > #S residual

Hesidual or ;rror

Total SS = + SS between columns Z SS between Hows ,

Total

[ "Wi&)++T,W>n,,

+ c. r )E,

38

2.9 /IMITATIONS OF THE STUDY Thou h at most care was taken to do the research articulately, it is liable to certain limitations vi0. The survey was limited to Gobi only. The respondents were less interested in answerin the (uestionnaire, as they felt that it was an interruption to their re ular work. 'll respondents were not very much open in ivin their details. Limited time period of the study. @ifficulties to see the investors, since most of the investors were tradin in their home itself. 2.H CHAPTER SCHEME: The whole study has been divided into five chapters as detailed below* The first chapter provides an idea about the investors preference of commodity market. The second chapter deals the overview about the industry profile and, company profile. The third chapter devoted to literature survey. The researcher attempted an e"haustive review of literature relatin to the field of study and has analy0ed the various studies which focused on the investors preference of commodity market. The fourth chapter deals with research methodolo y adopted in the study. !n this chapter, the ob&ectives set for the study, data collection sources, data collection tools, limitation of the study and chapter of schemes are e"plained. The fifth chapter deals with analysis and interpretation of data are undertaken, the analysis and interpretation have been supplemented and stren thened with appropriate tables. ' systematic and scientific analysis of data has been made usin different types of financial and statistical tools. The si"th chapter brin s out a comprehensive list of various findin s of the study. The systematic way of analysis and interpretation of data has resulted in arrivin at lo ical
39

findin s and on the basis of findin of the study? the researcher has come out with certain practical su of study. estions and conclusion. !n this chapter, the researcher also has outlined the directions for further research which could be undertaken by future researchers in this area

CHAPTER C V ANA/YSIS AND INTERPRETATION 1. SIMP/E NO.OF RESPONDENTS IN PERCENTAGE ANA/YSIS T%-*e No 3.1: T+e t%-*e s+o,in' t+e A'e Gro)! o" t+e Res!on$ents S.No E A'e 'ro)! /elow I8 yrs
40

No. o" Res!on$ents E5

No. o" Res!on$ents in 6M8 E8.4

I L 3 In"eren(e:

I8)89 yrs 89)M8 yrs 'boveM8 yrs Total

3E 8I 4 EI9

L3.I 3L.L 6.M E99

From the above table, it is clear that E8.4J of the respondents are belon s to the a e below I8yrs, L3.IJ of the respondents are belon s the a e between I8 years to 89 years.3L.LJ of the respondents are belon in the a e between 89 years to M8 years. 6.MJ of the respondents are belon s to above M8yrs of a e roup. $ence, the investors belon s the a e between 89 to M8 years are ma&or investors in the market. C+%rt No 3.1: A'e Gro)! o" t+e Res!on$ents

T%-*e No 3.0: T+e t%-*e s+o,in' o(()!%tion o" t+e Res!on$ents S.No E I L 3 Total In"eren(e:
41

O(()!%tion /usiness Profession ;mployed Dthers

No. o" Res!on$ents LL 36 IM E3 EI9

No. o" Res!on$ents in 6M8 IM.8 L4.LL II.8 EE.66 E99

From the above table, it is reveals that IM.8J of the respondents are /usinessmen, L4.LJ of the respondents are professional, II.8J of the respondents are ;mployed 7 EE.6J of the respondents are private others. $ence, most of the respondents are professionals. C+%rt No: 3.0 T+e (+%rt s+o,in' o(()!%tion o" t+e Res!on$ents

T%-*e No. : 3.1 T+e t%-*e s+o,in' Gen$er o" t+e Res!on$ents No. o" Res!on$ents 5I I4 EI9 No. o" Res!on$ents in 6M8 M6.M IL.L E99

S.No E I

O(()!%tion #ale Female Total

In"eren(e: From the above table, it is notified that M6.MJ of the respondents are #ale and IL.LJ of the respondents are Female. C+%rt No: 3.1: T+e (+%rt s+o,in' Gen$er o" t+e Res!on$ents
42

T%-*e No.3.2: T+e t%-*e s+o,in' E$)(%tion%* L)%*i"i(%tions o" t+e Res!on$ents S.No E I L 3 Total In"eren(e: From the above table, it is shows that E6.MJ of the respondents are in the cate ory of up to EIth, 39J of the respondents ;ducational (ualifications are :G, LE.MJ of the respondents are belon s to PG and EE.MJ of the respondents ;ducational (ualifications are others. $ence, ma&ority of the respondents are falls in :G.
43

E$)(%tion%* L)%*i"i(%tions :p to EIth :G PG Dthers

No. o" Res!on$ents I9 34 L4 E3 EI9

No. o" Res!on$ents in 6M8 E6.M 39 LE.M EE.M E99

C+%rt No. 3.2: T+e (+%rt s+o,in' E$)(%tion%* L)%*i"i(%tions o" t+e Res!on$ents

T%-*e No.3.3: T+e t%-*e s+o,in' Ann)%* In(o#e o" t+e Res!on$ents S.No E I L 3 Ann)%* In(o#e /elow I Lakhs I Lakhs )3 Lakhs 3 Lakhs)6 Lakhs 'bove 6 Lakhs Total In"eren(e: From the above table, it is inferred that LLJ of the respondents 'nnual income is /elow I Lakhs, IL.LJ of the respondents 'nnual income is I Lakhs ) 3 Lakhs, E5.IJ of the respondents 'nnual income is 3 laks)6 lakhs and I3.IJ of the respondents are belon s to above 6 Lakhs. $ence, most of the respondents annual income falls in below I lakhs. C+%rt No: 3.3 * T+e (+%rt s+o,in' Ann)%* In(o#e o" t+e Res!on$ents No. o" Res!on$ents 39 I4 IL I5 EI9 No.o" Res!on$ents in 6M8 LL.L IL.L E5.I I3.I E99

44

T%-*e No.3.9: T+e t%-*e s+o,in' Invest#ent O-Je(tives o" t+e Res!on$ents S.No E I L 3 Invest#ent O-Je(tives $i h income Heasonable income for safety For Hetirement welfare Ta" benefit Total In"eren(e: From the above table, it is identified that 63.E6J of the respondents investment ob&ective is to earn hi h !ncome, I5.E6J of the respondents aim is as reasonable income for safety. 6.66J of the respondents ob&ective is to for retirement benefit and 9J of the respondents ob&ective is to for ta" /enefits. $ence, #ost of the investors are aims at earnin the hi h income. C+%rt No.3.9* T+e (+%rt s+o,in' Invest#ent O-Je(tives o" t+e Res!on$ents No. o" Res!on$ents MM L8 4 9 EI9 No.o" Res!on$ents in 6M8 63.E I5.E 6.M 9 E99

45

T%-*e No.3.H: T+e t%-*e s+o,in' Invest#ent !ortion o" t+e Res!on$ents in(o#e S.No E I L 3 In"eren(e: From the above table, it is find that L9.4LJ of the respondents investment portion of income is below I8J. L8.4LJ of the respondents investment portion of income is between I8J)89J, I5.E6J of the respondents investment portion of income is between 89J)M8J, and 3.E6J of the respondents investment portion of income is above 3J. $ence, ma&ority of the respondents investment portion are in between I8 to 89J. C+%rt No.3.H* T+e (+%rt s+o,in' Invest#ent !ortion o" t+e Res!on$ents in(o#e Invest#ent !ortion /elow I8J I8J )89J 89J)M8J 'bove M8J Total No. o" Res!on$ents LM 3L L8 8 EI9 No. o" Res!on$ents in 6M8 L9.4L L8.4L I5.E6 3.E6 E99

46

T%-*e No.3.:: T+e t%-*e s+o,in' Ris& t%&in' (%!%(it o" t+e Res!on$ents S.No E I L 3 8 Ris& t%&in' (%!%(it .ery hi h $i h #edium Low .ery low Total No. o" Res!on$ents I9 I3 I6 I6 I3 EI9 No. o" Res!on$ents in 6M8 E6.66 I9 IE.66 IE.66 I9 E99

In"eren(e: From the above table, it is clearly shows that E6.6MJ of the respondents risk takin capacity is very hi h, I9J of the respondents risk takin capacity is hi h, IE.66J of the respondents risk takin capacity is #edium, IE.66J of the respondents risk takin capacity is low and I9J of the respondents risk takin capacity is very low. $ence, ma&ority of the respondents are willin to take medium risk in their investment. C+%rt No.3.:* T+e (+%rt s+o,in' Ris& t%&in' (%!%(it o" t+e Res!on$ents

47

T%-*e No.3.I: T+e t%-*e s+o,in' C)rrent Invest#ent o" t+e Res!on$ents No. o" Res!on$ents 85 LL EM EE EI9 No. o" Res!on$ents in 6M8 35.E6 IM.8 E3.E6 5.E6 E99

S.No E I L 3

C)rrent Invest#ent /elow E lakhs E Lakhs )I Lakhs I Lakhs )L Lakhs 'bove L Lakhs Total

In"eren(e: From the above table, it is reveals that 35.E6J of the respondents current

investment amount is below E Lakhs.IM.8J of the respondents current investment amount is between E Lakhs )I Lakhs, E3.E6J of the respondents current investment amount is between I Lakhs )L Lakhs, and 5.E6J of the respondents current investment amount is above L Lakhs. $ence, most of the respondents +85, investment amount falls below E lakhs. C+%rt No.3.I* T+e (+%rt s+o,in' C)rrent Invest#ent o" t+e Res!on$ents

48

T%-*e No.3.1D: T+e t%-*e s+o,in' Invest#ent %$vi(e o" t+e Res!on$ents S.No E I L 3 Total In"eren(e: From the above table, it shows that 35.E6J of the respondents are ettin investment advice from their friends.EM.8J of the respondents are ettin investment advice from their family, M.8J of the respondents are ettin investment advice from their consultants and I8.4LJ of the respondents are ettin investment advice from their others. $ence, !t is found that ma&ority of the respondents are advised by their friends. C+%rt No.3.1D* T+e (+%rt s+o,in' Invest#ent %$vi(e o" t+e Res!on$ents Invest#ent %$vi(e Friends Family -onsultants others No. o" Res!on$ents 85 IE 5 LE EI9 No. o" Res!on$ents in 6M8 35.E6 EM.8 M.8 I8.4L E99

49

T%-*e No.3.11: T+e t%-*e s+o,in' V%rio)s Invest#ent !re"eren(es o" t+e Res!on$ents S.No E I L 3 Invest#ent %ven)es Share #utual funds -ommodity market Dther savin s Total In"eren(e: From the above table, it is noted that 3L.LLJ of the respondents are prefer shares, IE.66J of the respondents are like to invest in mutual investments ,I6.66J of the respondents are preferrin commodity market investment avenues, and 4.LLJ of the respondents are like to invest only in other savin s like insurance , savin deposits.. $ence, we can understand that ma&ority of the respondents are interested to invest in shares only. C+%rt No.3.11* T+e (+%rt s+o,in' V%rio)s Invest#ent !re"eren(es o" t+e Res!on$ents No. o" Res!on$ents 8I I6 LI E9 EI9 No. o" Res!on$ents in 6M8 3L.LL IE.66 I6.66 4.LL E99

50

T%-*e No.3.10: T+e t%-*e s+o,in' So)r(e o" &no, %-o)t t+e (o##o$it #%r&et o" t+e Res!on$ents So)r(e o" &no, %-o)t t+e S.No E I L 3 In"eren(e: From the above table, it is inferred that 35.E6J of the respondents are ettin know about commodity market throu h friends, 3.E6J of the respondents are knowin throu h dealers, I9.4LJ of the respondents are ettin know about commodity market throu h mass medias, and E5.E6J of the respondents are came to know about commodity market throu h officials of investment or ani0ations. $ence, its clearly understood that most of the respondents are came to know about commodity market throu h their friends. C+%rt No.3.10* T+e (+%rt s+o,in' So)r(e o" &no, %-o)t t+e (o##o$it #%r&et o" t+e Res!on$ents (o##o$it #%r&et o" t+e Res!on$ents Friends @ealers #ass media Dfficials of investment or . Total No. o" Res!on$ents 85 8 I8 IL EI9 No. o" Res!on$ents in 6M8 35.E6 3.E66 I9.4L E5.E6 E99

51

No. of Respondents to know about CommodityMarket Through


21% Friends Dealers 53% 22% 4% Mass media Officials of investment organi ation

T%-*e No.3.11: T+e t%-*e s+o,in' E4!erien(e o" t+e Res!on$ents in (o##o$it Tr%$in' S.No E I L 3 In"eren(e: From the above table, it is clearly indentified that E8J of the respondents are tradin in commodity market below E year, L8J of the respondents are e"perienced between E)I years, E5.E6J of the respondents are tradin between I)L years and L9.4LJ of the respondents are e"perienced in commodity market more than L years. $ence, !ts concluded that ma&ority of the respondents are e"perienced in commodity market below E)I years. C+%rt No.3.11* T+e (+%rt s+o,in' E4!erien(e o" t+e Res!on$ents in (o##o$it Tr%$in' E4!erien(e in (o##o$it #%r&et /elow E year E)I years I)L ears #ore than L years Total No. o" Res!on$ents E4 3I IL LM EI9 No. o" Res!on$ents in 6M8 E8 L8 E5.E6 L9.4L E99

52

T%-*e No.3.12: T+e t%-*e s+o,in' t+e FreE)en( o" Tr%$in' in (o##o$it #%r&et o" t+e res!on$ents S.No E I L 3 8 6 In"eren(e: From the above table, it is clear that 48.4LJ of the respondents are tradin in commodity market in daily basis, 8.4LJ of the respondents fre(uency of tradin falls in weekly basis, I.8J of the respondents are tradin in monthly basis, E.66J of the respondents are tradin in commodity market in every seasons, I.8J of the respondents tradin fre(uency is in occasional basis, and E.66J of the respondents are tradin in commodity market in rarely. $ence, its reveals that most of the investors are tradin in commodity market in daily basis. C+%rt No.3.12* T+e (+%rt s+o,in' FreE)en( o" Tr%$in' in (o##o$it #%r&et o" t+e res!on$ents FreE)en( o" Tr%$in' @aily 2eekly #onthly ;very season Dccasionally Harely Total No. o" Res!on$ents E9L M L I L I EI9 No. o" Res!on$ents in 6M8 48.4L 8.4L I.8 E.66 I.8 E.66 E99

53

T%-*e No.3.13: T+e t%-*e s+o,in' A,%reness *eve* o" (o##o$it #%r&et re')*%tions %n$ its (ir()*%r S.No E I L 3 8 In"eren(e: From the above table, it is inferred that 84.LLJ of the respondents awareness level of markets re ulations and its circulars is very hi h, I8J of the respondents awareness level falls in hi h, 4.LLJ of the respondents are moderately aware about markets re ulations and its circulars, 8.4LJ of the respondents are havin low level awareness of markets re ulations and its circulars, and I.8J of the respondents are not aware of markets re ulations and its circulars. $ence, its concluded that out of the sample most of the respondents awareness level falls in the very hi h cate ory. C+%rt No.3.13: T+e (+%rt s+o,in' A,%reness *eve* o" (o##o$it #%r&et re')*%tions %n$ its (ir()*%r Total E4!erien(e in (o##o$it #%r&et .ery hi h $i h #edium low .ery low No. o" Res!on$ents M9 L9 E9 M L EI9 No.o" Res!on$ents in 6M8 84.LL I8 4.LL 8.4L I.8 E99

54

T%-*e No.3.19: T+e t%-*e s+o,in' Re%son "or C+oosin' Co##o$it M%r&et o" t+e Res!on$ents S.No E I L 3 In"eren(e: From the above table, it is found that 64.LLJ of the respondents are choosin the commodity market for ettin $i h return, L.LLJ of the respondents reason for choosin commodity market is moderate return, L.LLJ of the respondents are prefer to choose the commodity market is for earnin safety return, and I8J of the respondents reason for choosin commodity market falls in low #ar in. $ence, !ts inferred that ma&ority of the respondents are likely to choose the commodity market for ettin hi h return. C+%rt No.3.19* T+e (+%rt s+o,in' Re%sons "or C+oosin' Co##o$it M%r&et o" t+e Res!on$ents Re%son "or C+oosin' Co##o$it $i h return #oderate return Safe return Low #ar in Total No. o" Res!on$ents 4I 3 3 L9 EI9 No. o" Res!on$ents in 6M8 64.LL L.LL L.LL I8 E99

55

T%-*e No.3.1H: T+e t%-*e s+o,in' Investors !re"eren(e o" (o##o$it #%r&et o" t+e res!on$ents
T !es o" (o##o$ities Plantation Products* Hubber, Spices* Pepper, Turmeric, Oeera, chilli, coriander Pulses* -hana Fibres* .)M5M kapas , shankar kapas -ereals* 2heat, /arley, Dil and Dil seeds* -astor seeds, Dthers* Guar Seeds, Guar Gum, #etals* Steel, -opper, Yinc, ;ner y* -rude Dil, Thermal -oal, Ver Hi'+ EM M E3.E6 Hi'+ E8 M EI.8 Me$i) # E3 M EE.66 *o, L3 M I4.LL ver /o, 39 M LL.LL

EM

E3.E6

I9

E6.66

E4

E8

LI

I6.66

LL

IM.8

E4 I6

E8 IE.66

I9 EI

E6.66 E9

IL IM

E5.E6 II.8

33 L9

L6.66 I8

E8 I8

EI.8 I9.4L

IL II E8

E5.E6 E4.LL EI.8

E8 E8 E3

EI.8 EI.8 EE.66

I8 IE II

I9.4L EM.8 E4.LL

LE LI LL

I8.4L I6.66 IM.8

I6 L9 L6

IE.66 I8 L9

89

3E.66

LI

I6.66

EE

5.E66

E6

EL.LL

EE

5.E66

8I

3L.LL

I9

E6.66

E8

EI.8

I9

E6.66

EL

E9.4L

56

Precious #etals* Gold, Gold +E99 ms,, Gold !nternational, Silver, Silver +8k ,, Silver !nternational, Platinum Dthers* -;H, Polyvinyl -hloride

69

89

E5

E8.4L

EE

5.E6

E8

EI.8

E8

EI.8

E.66

E8

EI.8

39

LL.LL

6L

8I.8

In"eren(e: From the above table its clearly found that LL.LJ of the respondents are not ready to prefer the plantation products, #a&ority of the respondents i.e. M8.8J of the respondents are prefer only low level of spices products, L6.MJ of the respondents are likely to prefer only low level of pulses products, I8 J of the respondents preference falls in low level of Fibers products, I8.4J of the respondents are prefer low level of cereals products, I6.MJ of the respondents are prefer low level of oil seeds products and L9J of the respondents are not prefer other foods products, 3EJ of the respondents are very hi hly iven their preference is metal products like steel, copper, etc. 3LJ of the respondents are very hi hly preferred the ;ner y products like crude oil, natural as etc. 89J of the respondent s preference falls in the Precious products like old, LL.LJ of the respondents are not prefer other metal products like polyvinyl,
57

$ence, from the above consolidated table it shows that ma&ority of the investors preference is metal, ener y and precious metals.

58

C+%rt No.3.1H: T+e (+%rt s+o,in' Investors !re"eren(e o" (o##o$it #%r&et o" t+e res!on$ents

59

#%r&et E I L 3 In"eren(e: Price hed in He ulated marketin Low risk Suality products Total

Res!on$ents 8E L5 I9 E9 EI9

6M8 3I.8 LI.8 E6.66 4.LL E99

From the above table, it is clearly notify that 3I.8J of the respondents are sayin the specialty of the commodity tradin are price hed in , LI.8J of the respondents are sayin the specialty of the commodity tradin are re ulated market, E6.66J of the respondents opinion about specialty of tradin are low risk, and 4.LLJ of the respondents iven their opinion about the specialty of the commodity tradin are (uality products. $ence, form the above table its clearly reveals that most of the respondents i.e., +8E, are iven their opinion about the specialty of this market is price hed in . C+%rt No.3.1:* T+e (+%rt s+o,in' O!inion o" t+e res!on$ents %-o)t t+e s!e(i%*t o" tr%$in' in (o##o$it #%r&et

T%-*e No.3.1I: T+e t%-*e s+o,in' /eve* o" %((e!t%n(e o" t+e res!on$ents %-o)t *)rin' %$vertise#ent< r)#ors et(. S.No E I L /eve* o" %((e!t%n(e o" *)rin' %$vertise#ent< r)#ors et( .ery hi h $i h #edium 60 No. o" Res!on$ents 4E I8 EI No.o" Res!on$ents in 6M8 6M.8 I9.4L E9

3 8 In"eren(e: Total

Low .ery low

E E EI9

9.4L 9.4L E99

From the above table, it is found that 6M.8J of the respondents level of acceptance about rumors and lurin advertisements is very hi h, I9.4LJ of the respondents are hi hly acceptin about rumors and lurin advertisements, E9J of the respondents level of acceptance about rumors and lurin advertisements falls in medium, 9.4LJ of the respondents are havin very low level of acceptance about rumors and lurin advertisements, and 9.4LJ of the respondents are not acceptin the rumors and lurin advertisements. $ence, !ts concluded that ma&ority of the investors are very hi hly acceptin the rumors 7 lurin advertisements. C+%rt No.3.1I: T+e (+%rt s+o,in' /eve* o" %((e!t%n(e o" t+e res!on$ents %-o)t *)rin' %$vertise#ent< r)#ors et(

T%-*e No.3.0D: T+e t%-*e s+o,in' Res!on$ents re(o##en$%tion o" ot+ers enterin' into t+e (o##o$it #%r&et S.No E I L 3 Total In"eren(e:
61

Res!on$ents re(o##en$%tion to ot+ers @efinitely Probably Aot sure Aever

No. o" Res!on$ents M8 LL EI 9 EI9

No. o" Res!on$ents in 6M8 6I.8 IM.8 E9 9 E99

From the above table, it is indentified that 6I.8J of the respondents are recommends others enter into the commodity, IM.8 J of the respondents are probably recommends others enter into commodity market, and E9J of the respondents are sayin not sure to other enterin into the commodity market. $ence, from the above table its clearly understood that out of the total sample most of the respondents i.e. M8 of them are definitely recommendin others to enter into the market. C+%rt No.3.0D: T+e (+%rt s+o,in' Res!on$ents re(o##en$%tion o" ot+ers enterin' into t+e (o##o$it #%r&et

0. CHI-SLUARE ANA/AYSIS T%-*e No.3.01: T+e t%-*e s+o,in' Re*%tions+i! -et,een Ann)%* In(o#e %n$ P)*ses

62

In(o#e U P)*ses Cross t%-)*%tion Pulses Total E -ount /elow two lakhs ;"pected -ount -ount Two Lakhs ) Four Lakhs In(o# e Four Lakhs ) Si" Lakhs ;"pected -ount -ount ;"pected -ount -ount 'bove Si" Lakhs ;"pected -ount -ount Total ;"pected -ount 3 6.9 4 3.I 3 L.3 I 3.3 E4 E4.9 I 6 6.M 8 3.M 6 L.4 L 3.4 I9 I9.9 L 4 M.M L 8.3 3 3.3 4 8.6 IL IL.9 3 E3 E3.M EE E9.L M 4.3 EI E9.6 33 33.9 8 4 8.9 E L.8 I I.5 3 L.6 E8 E8.9 39 39.9 I4 I4.9 IL IL.9 I5 I5.9 EI9 EI9.9

Ste!1

: Aull $ypothesis +$9,* There is no si nificant relationship between 'nnual !ncome and Pulses.

Ste!0

: 'lternate $ypothesis +$E,* There is si nificant relationship between 'nnual !ncome and Pulses.

Ste! 1

: calculation of chi)s(uare VW X[ +Di&) ;i&, W / ;i&


63

T%-*e No.00: (%*()*%tion o" (+i-sE)%re S.No E I L 3 8 6 M 4 5 E9 EE EI EL E3 E8 E6 EM E4 E5 I9 OiJ 3 6 4 E3 4 4 8 L EE E 3 6 3 M I I L 4 EI 3 EiJ 6 6.6M M.6M E3.6M 8 3.I 3.6M 8.LM E9.I6 L.8 L.38 L.4L 3.3 4.3L I.48 3.L8 3.4L 8.86 E9.6L L.6L OiJ-EiJ )I )9.6M 9.LL )9.6M L L.4 9.LL )I.LM 9.M3 )I.8 9.88 I.EM )9.3 )E.3L )9.48 )I.L8 )E.4L I.33 E.LM 9.LM 6OiJ-EiJ8Q 3 9.3345 9.E945 9.3345 5 E3.33 9.E945 8.6E65 9.83M6 6.I8 9.L9I8 3.M945 9.E6 I.9335 9.MII8 8.8II8 L.L345 8.58L6 E.4M65 9.EL65 6OiJ-EiJ8QOEiJ 9.6666 9.96ML9 9.9E3E5 9.9L985 E.4 L.3L49 9.9ILL E.9385 9.98LL E.M48M 9.94M6 E.II53 9.9L6L 9.I3I8 9.I8L8 E.I658 9.65LL E.9M9M 9.EM68 9.9LMM E3.9II4

-hi s(uare+VW X[ +Di&) ;i&, W > ;i& , Ste!2 : Therefore, the @e ree of freedom in this case X +r)E, +c)E,
64

N 10 Ste!3 : Con(*)sion: The table value of VW for EI de ree of freedom at 8J level of si nificance is IE.999. The calculated value VW is much less than the tabulated value and hence the result of the e"periment supports the hypothesis. 2e can, thus, conclude that there is no influencin of income to prefer the pulses. +Aull $ypothesis 'ccepted,

T%-*e No.3.01: T+e t%-*e s+o,in' Re*%tions+i! -et,een Ann)%* In(o#e %n$ Fi-res

65

In(o#e U Fi-ers Cross t%-)*%tion Fibres Total E -ount /elow two lakhs ;"pected -ount -ount Two Lakhs ) Four Lakhs !ncome -ount Four Lakhs ) Si" Lakhs ;"pected -ount -ount 'bove Si" Lakhs ;"pected -ount -ount Total ;"pected -ount L 8.9 8 6.L I6 I6.9 L I.L E I.5 EI EI.9 6 8.I 5 6.8 IM IM.9 6 8.4 4 M.I L9 L9.9 8 3.4 6 6.9 I8 I8.9 IL IL.9 I5 I5.9 EI9 EI9.9 ;"pected -ount 4 4.M E9 6.E I 8 3.9 L I.4 L 4 5.9 3 6.L 3 E9 E9.9 6 M.9 8 5 4.L 8 8.4 39 39.9 I4 I4.9

Ste!1

* Aull $ypothesis +$9,* There is no si nificant relationship between 'nnual !ncome and Fibers.

Ste!0

* 'lternate $ypothesis +$E,* There is si nificant relationship between 'nnual Fibers. VW X[ +Di&) ;i&, W / ;i&

Ste! 1: calculation of chi)s(uare

T%-*e No.3.02: (%*()*%tion o" (+i-sE)%re S.No OiJ EiJ OiJ-EiJ


66

6OiJ-EiJ8Q

6OiJ-EiJ8QOEiJ

E I L 3 8 6 M 4 5 E9 EE EI EL E3 E8 E6 EM E4 E5 I9

4 4.M )9.M 9.35 8 3 E E 4 5 )E E E9 E9 9 9 5 4.L 9.M 9.35 E9 6.E L.5 E8.IE L I.4 9.I 9.93 3 6.L )I.L 8.I5 6 M )E E 8 8.4 )9.4 9.63 L 8 )I 3 L I.L 9.M 9.35 6 8.I 9.4 9.63 6 8.4 9.I 9.93 8 3.4 9.I 9.93 8 6.L )E.L E.65 E I.5 )E.5 L.6E 5 6.8 I.8 6.I8 4 M.I 9.4 9.63 6 6 9 9 -hi s(uare+VW X[ +Di&) ;i&, W > ;i& ,

9.986L 9.I8 9.EEEE 9 9.9859 I.35L3 9.9E3I 9.4L56 9.E3I4 9.EE9L 9.4 9.IEL9 9.EIL9 9.9964 9.994L 9.I64I E.I334 9.56E8 9.9444 9 M.M5E5

Ste!2 Ste!3

* Therefore, the @e ree of freedom in this case * Con(*)sion:

X +r)E, +c)E, X 10

The table value of VW for EI de ree of freedom at 8J level of si nificance is IE.999. The calculated value VW is much less than the tabulated value and hence the result of the e"periment supports the hypothesis. 2e can, thus, conclude that there is no influencin of income to prefer the fibers. +Aull $ypothesis 'ccepted,.

67

T%-*e No.3.03: T+e t%-*e s+o,in' Re*%tions+i! -et,een Ann)%* In(o#e %n$ Ener'

68

O(()!%tion U Ener' Cross t%-)*%tion ;ner y E -ount /usiness ;"pected -ount -ount ;"pected -ount -ount ;"pected -ount -ount ;"pected -ount -ount Total ;"pected -ount Ste!1 EL E3.L II E5.5 E8 EE.M I 6.E 8I 8I.9 I L 8.8 E9 M.M L 3.8 3 I.L I9 I9.9 L 3 3.E 6 8.4 L L.3 I E.4 E8 E8.9 3 4 8.8 L M.M 3 3.8 8 I.L I9 I9.9 8 8 L.6 8 8.9 I I.5 E E.8 EL EL.9 Total LL LL.9 36 36.9 IM IM.9 E3 E3.9 EI9 EI9.9

Profession Dccupation ;mployed

Dthers

* Aull $ypothesis +$9,* There is no si nificant relationship between 'nnual !ncome and ;ner y.

Ste!0

* 'lternate $ypothesis +$E,* There is si nificant relationship between 'nnual ;ner y.

Ste! 1:

calculation of chi)s(uare VW

X[ +Di&) ;i&, W / ;i&

T%-*e No.3.09: (%*()*%tion o" (+i-sE)%re S.No E I OiJ EL L EiJ E3.L 8.8 OiJ-EiJ )E.L )I.8
69

6OiJ-EiJ8Q E.65 6.I8

6OiJ-EiJ8QOEiJ 9.EE4E E.EL6L

L 3 8 6 M 4 5 E9 EE EI EL E3 E8 E6 EM E4 E5 I9

3 4 8 II E9 6 L 8 E8 L L 3 I I 3 I 8 E

3.EI8 8.8 L.8M8 E5.5L M.66M 8.M8 M.66M 3.54L EE.M 3.8 L.LM8 3.8 I.5I8 6.96M I.LLL E.M8 I.LLL E.8EM

)9.EI8 I.8 E.3I8 I.966M I.LLL3 9.I8 )3.6666 9.9E6M L.L )E.8 )9.LM8 )9.8 )9.5I8 )3.9666 E.666M 9.I8 I.666M )9.8E66

9.9E86 6.I8 I.9L96 3.IMEI 8.333M8 9.96I8 IE.MMME 9.999I E9.45 I.I8 9.E396 9.I8 9.4886 E6.8LMI I.MMM4 9.96I8 M.EEEI 9.I664

9.99LM E.EL6L 9.8649 9.IE3I 9.ME9E 9.9E94 I.4398 8.8563 9.5L9M 9.8 9.93E6 9.9888 9.I5I8 I.MI85 E.E598 9.9L8M L.93MM 9.EM85 E8.ML83

-hi s(uare+VW X[ +Di&) ;i&, W > ;i& , Ste!2 : Therefore, the @e ree of freedom in this case X +r)E, +c)E, Ste!3 : Con(*)sion: X +3)E, +8)E, X EI

The table value of VW for EI de ree of freedom at 8J level of si nificance is IE.999. The calculated value VW is much less than the tabulated value and hence the result of the
70

e"periment supports the hypothesis. 2e can, thus, conclude that there is no influencin of Dccupation to prefer the ;ner y. +Aull $ypothesis 'ccepted,.

1. ANNOVA T%-*e No.3.0H: T+e t%-*e s+o,in' Re*%tions+i! -et,een O(()!%tion %n$ Met%*s

71

O(()!%tion U Met%*s Cross t%-)*%tion #etals Total E /usiness Profession Dccupation ;mployed Dthers Total Ste! 1 EL L 89 8 3 LI E L EE 3 3 E6 3 9 EE IM E3 EI9 EL IE I M E6 L 8 I 3 6 I 8 I 8 LL 36

: N)** H !ot+esis 6Ho8: There is no si nificant relationship between occupation and Preference of the #etal -ommodity.

Ste! 0

: A*tern%tive H !ot+esis 6H18: There is si nificant difference

between occupation and #etal -ommodity Preference. Ste!1 : TXEI9, nXI9, Therefore, Corre(tion "%(tor X +T, W > n X EI9W>I9 X MI9 Ste!2 X 8M9 Ste! 3 : SS -et,een Co*)#ns Tre%t#ent: : Tot%* SS NE65Z35ZI8ZL6Z3Z33EZI86Z3Z3ZI8ZE65ZI8ZEZE6ZE6Z5ZE6Z5Z5

X +89W>3, Z +LIW>3, Z +EEW>3, Z +E6W>3, Z +EEW>3, ) MI9 +correction Factor, N 0:3.3 Ste! 9 : SS -et,een Ro,s Tre%t#ent:

X +LLW>8, Z +36W>8, Z +IMW>8, Z +E3W>8, ) MI9 +correction Factor,


72

N 1D9 Ste! H: SS Resi$)%* or Error N Tot%* SS C 6SS AO, Co*)#ns V SS AO, Ro,s8 X 8M9 = +I48.8 Z E96, N 1H:.3 Ste! :: C%*()*%tion o" Anov% T%-*e No.3.0:: T+e Anov% T%-*e So)r(e o" v%ri%tion /etween columns +i.e. between occupation, /etween Hows +i.e. between #etal Preference level , E96 3M F-/i#it 6or t+e t%-*e v%*)es8 F + 3 , EI , X 8.5EEM

SS

$." X + c)E ,

MS

F- r%tio

I48.8

X+8=E, X3

X I48.8 > 3 X ME.LM8

X ME.LM8 > E3.4M8 X 3.M54L

X+r=E, X+3=E, XL X+c=E,

X E96 > L X L8.LLLL

X L8.LLLL > E3.4M8 X I.LM8L

F + L , EI , X 4.M336

Hesidual or ;rror

EM4.8

+r=E, X3"L X EI

X EM4.8 > EI X E3.4M8

Total

8M9

+3 " L , = E X EE

In"eren(e:
73

!t is noted from the above table that, the calculated 'AD.' value is less than the table value. So, there is no relationship between Dccupation and #etal preference. +Aull hypothesis accepted.,

T%-*e No.3.0I: T+e t%-*e s+o,in' Re*%tions+i! -et,een Ris& T%&in' C%!%(it %n$ A'e Gro)!

74

Ris& T%&in' U A'e Cross t%-)*%tion ' e Total /elow I8 yrs I8)89 yrs 89)M8 yrs 'bove M8 yrs .ery hi h $i h Hisk takin #edium Low .ery low Total Ste! 1 9 9 E5 9 9 E5 E5 E 8 6 E9 3E E IL I I9 6 8I 9 9 9 9 4 4 I9 I3 I6 I6 I3 EI9

: N)** H !ot+esis 6Ho8:

There is no si nificant relationship between Hisk Takin -apacity and a e Group for investin in commodity market. Ste! 0: A*tern%tive H !ot+esis 6H18: There is si nificant difference between Hisk Takin -apacity and ' e Group for investin in commodity market. Ste!1 Ste!2 : TXEI9, nXI9, Therefore, Corre(tion "%(tor X +T, W > n X EI9W>I9 X MI9 :

Tot%* SS N 9 Z E Z 8I5 Z 9 Z L6E Z I8 Z 3 Z L6 Z 399 Z E99 Z L6 Z 63 X E886 = MI9 +correction Factor, N :19 Ste! 3 : SS -et,een Co*)#ns Tre%t#ent:
75

X +E5W>8, Z +3EW>8, Z +8IW>8, Z +4W>8, ) MI9 +correction Factor, X 56I = MI9 +correction Factor, N 020 Ste! 9 : SS -et,een Ro,s Tre%t#ent:

X +I9W>3, Z +I3W>3, Z +I6W>8, Z +I6W>8, Z +I3W>8, ) MI9 +correction Factor, X MI6 = MI9 +correction Factor, X6 Ste! H: SS Resi$)%* or Error N Tot%* SS C 6SS AO, Co*)#ns V SS AO, Ro,s8 N 4L6 = +I3I Z 6, N 3:: Ste! :: C%*()*%tion o" ANOVA

T%-*e No.3.1D: T+e ANOVA T%-*e 3M F-/i#it 6or t+e t%-*e v%*)es8

So)r(e o" v%ri%tion

SS

$."

MS

F- r%tio

76

/etween columns +i.e. between occupation, /etween Hows +i.e. between #etal Preference level ,

X + c)E , ? I3I X+3=E, XL X+r=E, 6 X+8=E, X3 X+c=E,

X I3I > L X 49.6666

X 49.6666> 35 X 3.M54L

F + L , EI , X 4.M336

X 6> 3 X E.8

X E.8> 35 X 9.L96E

F + 3 , EI , X 8.5EEM

Hesidual or ;rror

844

+r=E, XL"3 X EI

X 844 > EI X 35

Total

4L6

+L " 3 , = E X EE

In"eren(e: !t is identified from the above table that, the calculated 'AD.' value is less than the table value. So, there is no relationship between Hisk takin capacity and a e of the respondents. $ence, the null hypothesis accepted.

2. CORRE/ATION ANA/YSIS T%-*e No.3.11: T+e t%-*e s+o,in' Corre*%tion -et,een S!i(es %n$ #et%*s Spices +C, #etal +B, EM 89 I9 LI E4 EE LI E6 LL EE

Ste! 1: -alculation of -orrelation


77

N S $4 $ C 6S $48 6S $ 8 r N -----------------------------------------TNS$4Q - 6S $48 Q TNS $ Q - 6S $ 8 Q Ste!0: T%-*e No.3.10: Corre*%tion -et,een S!i(es %n$ #et%*s 7 EM I9 E4 LI LL EI9 r N 67-028 $4 )M )3 )6 4 5 9 -D.3I:D $4Q 35 E6 L6 63 4E I36 Y 89 LI EE E6 EE EI9 6Y-038 $ I8 M )E3 )5 )E3 )8 $ Q 6I8 35 E56 4E E56 EE3M $4 $ )EM8 )I4 43 )MI )EI6 )LEM

In"eren(e: Since the correlation value should lies between )E 7 ZE. $ere, r value is Ae ative, so there is Ao relationship between spices and metals preference of the respondents. T%-*e No.11: T+e t%-*e s+o,in' (orre*%tion -et,een Ris& T%&in' (%!%(it %n$ !re(io)s #et%*s Hisk Takin capacity +C, precious metals +B, Ste! 1: -alculation of -orrelation N S $4 $ C 6S $48 6S $ 8 r N -----------------------------------------TNS$4Q - 6S $48 Q TNS $ Q - 6S $ 8 Q
78

I9 69

I3 E5

I6 EE

I6 E8

I3 E8

Ste!0: T%-*e No.3.12: C%*()*%tion o" Corre*%tion 7 I9 I3 I6 I6 I3 EI9 r N 67-098 $4 )6 )I 9 9 )I )E9 -D.I2221 $4Q L6 3 9 9 3 33 Y 69 E5 EE E8 E8 EI9 6Y-1D8 $ L9 )EE )E5 )E8 )E8 )L9 $ Q 599 EIE L6E II8 II8 E4LI $4 $ )E49 II 9 9 L9 )EI4

In"eren(e: Since the correlation value should lies between )E 7 ZE.$ere, r value is Ae ative, so there is no relationship between Hisk Takin capacity and precious metals preference of the respondents. 3. @EIGHTED AVERAGE ANA/YSIS T%-*e No.3.13: T+e t%-*e s+o,in' o!inion o" t+e res!on$entWs !re"eren(e o" (o##o$it #%r&et r%tin' in S+%re &+%n Fin%n(i%* Servi(es Pvt. /t$< Go-i
T !es o" (o##o$ities Plantation Products* Hubber, Score Spices* Pepper, Turmeric, Oeera,chilli, coriander Score Pulses* -hana Ver Hi'+ EM 48 EM 48 E4 Hi'+ E8 69 I9 49 I9 79 Me$i)# E3 3I E4 83 IL *o, L3 64 LI 63 33 ver /o, 39 39 LL LL E8 Tot%* EI9 I58 EI9 LE6 EI9 3 R%n&in '

Score Fibres* .)M5M kapas , shankar kapas Score -ereals* 2heat, /arley, Score Dil and Dil seeds* -astor seeds, Score Dthers* Guar Seeds, Guar Gum, Score #etals* Steel, -opper, Yinc, Score ;ner y* -rude Dil, Thermal -oal, Score Precious #etals* Gold, Gold +E99 ms,, Gold !nternational, Silver, Silver +8k ,, Silver !nternational, Platinum Score Dthers* -;H, Polyvinyl -hloride Score

59 I6 EL9 IL EE8 II EE9 E8 M8 89 I89 8I I69

49 EI 34 E8 69 E8 69 E3 86 LI EI4 I9 49

65 IM 4E I8 M8 IE 6L II 66 EE LL E8 38

44 L9 69 LE 6I LI 63 LL 66 E6 LI I9 39

E8 I8 I8 I6 I6 L9 L9 L6 L6 EE EE EL EL

L3I EI9 L33 EI9 LL4 EI9 LIM EI9 I55 EI9 383 EI9 3L4 8

69

E5

EE

E8

E8

EI9

L99 I E9

M6 9 9

LL E8 38

L9 39 49

E8 6L 6L

383 EI9 E54

E9

In"eren(e: From the above table by the wei hted avera e method, its observed that Precious #etals* Gold, Gold +E99 ms,, Gold !nternational, Silver, Silver +8k ,, Silver !nternational, Platinum commodities have E rank of investors preference, ;ner y* -rude Dil, Thermal -oal,
80

commodities havin the Ind Hank of the !nvestors preference. Fibres* .)M5M kapas, Shankar kapas commodities havin the Lrd rank of amon the investors preference. Therefore from the wei hted avera e method ma&ority of the respondents very hi hly prefer to invest in the commodities like Precious #etal, ;ner y and Fibres.

CHAPTER C VI FINDINGS< SUGGESTIONS 5 CONC/USION 9.1 FINDINGS OF THE STUDY E8.4J of the respondents are belon s I8yrs of a e Group, L3.IJ of the respondents are a e roup between I8 yrs to 89 yrs.,3L.LJ of the respondents are between 89 to M8 yrs of a e roup, and 6.MJ of the respondents are the above M8 Brs. IM.8 J of the respondents are business people, 36J of the respondents are professionals, IMJ of the respondents are employed, and E3 J of the respondents are other occupations. M6.MJ of the respondents are male investors, and IL.LJ of the respondents are female investors. E6.M J of the respondents (ualification is below schoolin , 39J of the respondents (ualification is only under raduates, LE.MJ of the respondents (ualification is post raduates and EE.M J of the respondents (ualification is others like diplomas. LL.L J of the respondents annual incomes level is below than I Lakh, IL.LJ of the respondents annual incomes level is between I Lakh to 3Lakh, E5.IJ of the respondents annual incomes level is in between 3 lakh to 6 lakh, and I3.IJ of the respondents annual incomes level is above 6 lakh. 63.I J of the respondents investment ob&ectives is $i h !ncome ,I5.IJ of the respondents investment ob&ectives is Heasonable income for safety , 6.MJ of the respondents investment
81

ob&ectives is for retirement welfare and 9J of the respondents an investment ob&ective is ta" benefits. L9.4J of the respondents of investments portion from their income is below I8 J,L8.4J of the respondents of investments portion from their income is between I8J to 89J, I5.IJ of the respondents of investments portion from their income is between 89J to M8J and 3.I J of the respondents of investments portion from their income is above M8J. E6.M J of the respondents risk takin capacity is very hi h, I9J of the respondents risk takin capacity is hi h, IE.M J of the respondents risk takin capacity is medium, IE.MJ of the respondents risk takin capacity is low, and I9J of the respondents risk takin capacity is very low. 35.IJ of the respondents current investment is below E lakh, IM.8J of the respondents current investment is between E lakh to I lakh, E3.IJ of the respondents current investment is between I lakh to L lakh, 5.IJ of the respondents current investment is above L lakh. 35.IJ of the respondents are ettin investments advice from their friends, EM.8J of the respondents are ettin investments advice from their family members,M.8J of the respondents are ettin investments advice from investment consultants and I8.4J of the respondents are ettin investments advice from others sources. 3L.L J of the respondents hi her preference of their investment avenues is shares, IE.MJ of the respondents investment preference is mutual funds, I6.MJ of the respondents investment preference is commodity markets and 4.L J of the respondents investment preference is other savin s. 5L.L J of the respondents are well known about commodity market tradin , and 6.M J f the respondents are not havin much aware about commodity marketin . 35.IJ of the respondents are know about commodity market tradin throu h their friends , 3.IJ of the respondents are know about commodity market tradin throu h their investment traders, I9.4J of the respondents are know about commodity market tradin throu h mass

82

media, E5.IJ of the respondents are know about commodity market tradin throu h the official investment or ani0ations. E99J of the respondents are involved in commodity tradin . E8J of the respondents are havin e"perience in commodity tradin below E yr. L8J of the respondents are havin e"perience in commodity tradin between E to I yrs, E5.IJ of the respondents are havin e"perience in commodity tradin between I to L yrs, and L9.4J of the respondents are havin e"perience in commodity tradin more than L yrs. 48.4 J of the respondents are daily traders, 8.4J of the respondents are weekly traders, I.8J of the respondents are monthly traders, E.MJ of the respondents are season traders, I.8J of the respondents are occasionally trade, and E.MJ of the respondents are trade rarely. 84.LJ of the respondents are very hi h aware of the commodity markets circular and its re ulations , I8J of the respondents are hi h level awareness of the commodity markets circular and its re ulations, 4.LJ of the respondents are medium level of awareness about the commodity markets circular and its re ulations, 8.4J of the respondents are havin low level of awareness about their commodity markets circular and its re ulations, and I.8J of the respondents are havin very low level of awareness about their commodity markets circular and its re ulations, 64.LJ of the respondents are choosin commodity trade for hi h return. L.LJ of the

respondents are choosin commodity trade for moderate return, L.LJ of the respondents are choosin commodity trade for safely return, and I8J of the respondents are choosin commodity tradin because its re(uired only low mar in. E3.IJ of the respondents are very hi hly prefer the plantation products like rubber, EI.8J of the respondents are hi hly prefer the plantation products like rubber, EE.MJ of the respondents are prefer medium level of preference of the plantation products like rubber, and I4.LJ of the respondents are prefer low .LL.LJ of the respondents are very low to prefer the plantation products like rubber

83

E3.IJ

of

the

respondents

are

very

hi hly

prefer

the

spices

products

like

pepper,turmeric,&eera,chilli,coriander, E6.MJ of the respondents are hi hly prefer the spices products like pepper,turmeric,&eera,chilli,coriander, E8J of the respondents are moderate level of preference of spices products like pepper, turmeric, &eera, chilli, coriander, I6.M J of the respondents are prefer low level of preference of the spices products like pepper, turmeric, &eera, chilli, coriander, and IM.8J of the respondents are very low to prefer the spices products like pepper,turmeric,&eera,chilli,coriander. E8J of the respondents are very hi hly prefer the pulses products like -hana, E6.MJ of the respondents are hi hly prefer the pulses products like -hana, E5.IJ of the respondents are moderate level of preference in pulses products like -hana, L6.M J of the respondents are prefer low level of preference of the pulses products like -hana, and EI.8J of the respondents are very low to prefer the pulses products like -hana. IE.MJ of the respondents are very hi hly prefer the Fibers products like .)M5M %apas, Shankar %apas, E9J of the respondents are hi hly prefer the Fibers products like .)M5M %apas, Shankar %apas, II.8J of the respondents are moderate level of preference in Fibers products like .)M5M %apas, Shankar %apas, I8 J of the respondents are prefer low level of preference of the Fibers products like .)M5M %apas, Shankar %apas, and I9.4J of the respondents are very low to prefer the Fibers products like .)M5M %apas, Shankar %apas. E5.IJ of the respondents are very hi hly prefer the -ereals products like wheat, barley, mai0e)feed>industrial Grade, EI.8J of the respondents are hi hly prefer the -ereals products like wheat, barley, mai0e)feed>industrial Grade, I9.4J of the respondents are moderate level of preference in -ereals products like wheat, barley, mai0e)feed>industrial Grade, I8.4 J of the respondents are prefer low level of preference of the -ereals products like wheat, barley, mai0e)feed>industrial Grade, and IE.MJ of the respondents are very low to prefer the -ereals products like wheat, barley, mai0e)feed>industrial Grade. E4.LJ of the respondents are very hi h to prefer the oil and oil seeds, EI.8J of the respondents are hi hly to prefer the oil and oil seeds, EM.8J of the respondents are prefer it only the moderate level, I6.MJ of the respondents are prefer only low level and I8J of the respondents are very low to prefer the oil and oil seeds.
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EI.8J of the respondents are very hi h to prefer the other products like Guar Seeds, potato . EE.M J of the respondents are prefer hi h level, E4.L Jof the respondents are prefer these products only moderate level, IM.8 J of the respondents are prefer it low level and L9 J of the respondents are not to prefer the other products. 3E.MJ of the respondents are very hi hly prefer metal products like steel, copper and nickel, I6.MJ of the respondents are hi hly prefer metal products like steel, copper and nicke.5.Il J of the respondents are prefer it only moderate levels, EL.LJ of the respondents are prefer only low level and 5.I J of the respondents are not to prefer the metals to invest. 3L.LJ of respondents are very hi h to prefer the ener y products, E6.M J of the respondents are hi hly prefer it, EI.8 J of the respondents are only moderate level of preference, and E6.MJ of the respondents are very low to prefer it. and E9.4EJ of the respondents are not ready to prefer it 89J of respondents are very hi h to prefer the Precious metals products, E8.4J of the respondents are hi hly prefer it, 5.IJ of the respondents are only moderate level of preference, EI.8J of the respondents are very low to prefer, and EI.8 J of the respondents are not prefer it. E.MJ of the respondents are very hi hly prefer other products like Polyvinyl, EI.8 J of the respondents are moderate level of preference , LL.L J of the respondents are very low to prefer it ,8I.8 J of the respondents are not to prefer its. 3I.8 J of the respondents are sayin about commodity market is price hed in , LI.8J of the respondents are sayin about commodity market is re ulated marketin , E6.MJ of the respondents are sayin about commodity market is low risk, and 4.L J of the respondents are sayin about commodity market is (uality products. 6M.8J of the respondents are very hi hly accepted the commodity market advertisement and its rumors. I9.4J of the respondents are hi hly accept the commodity market advertisement and its rumors, E9J of the respondents are moderate level of acceptance of the commodity market advertisement and its rumors, 9.4J of the respondents are very low acceptin the
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commodity market advertisement and its rumors and 9.4J of the respondents are not to accept the commodity market advertisement and its rumors. 6I.8J of the respondents are sayin definitely recommend commodity tradin to others, IM.8 J of the respondents are probably others to trade in commodity market, EIJ of the respondents are not ready to recommend others to do in commodity tradin . From the chi s(uare analysis between the income and pulses calculation, the table value of V W for EI de ree of freedom at 8J level of si nificance is IE.999. The calculated value VW is much less than the tabulated value and hence the result of the e"periment supports the hypothesis. 2e can conclude that there is no influencin of income to prefer the pulses. +Aull $ypothesis 'ccepted, From the chi s(uare analysis between the income and fibers calculation, the table value of V W for EI de ree of freedom at 8J level of si nificance is IE.999. The calculated value VW is much less than the tabulated value and hence the result of the e"periment supports the hypothesis. 2e can, conclude that there is no influencin of income to prefer the fibers. +Aull $ypothesis 'ccepted, From the chi s(uare analysis between the occupation and ener y calculation the table value of VW for EI de ree of freedom at 8J level of si nificance is IE.999. The calculated value VW is much less than the tabulated value and hence the result of the e"periment supports the hypothesis. 2e can, thus, conclude that there is no influencin of Dccupation to prefer the ;ner y. +Aull $ypothesis 'ccepted, !t is noted from the 'AD.' calculation between occupation and precious metal, the calculated 'AD.' value is less than the table value. So, there is no relationship between Dccupation and #etal. +Aull hypothesis accepted., !t is noted from the 'AD.' calculation between risk takin capacity and a e of the respondents, the calculated 'AD.' value is less than the table value. So, there is no relationship between Hisk takin capacity and a e of the respondents. +Aull hypothesis accepted,.
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The correlation calculation between spices and metal, the correlation value i.e. r value is Ae ative, so there is Ao relationship between spices and metals preference of the respondents. The correlation calculation between Hisk Takin and precious metals preference of the respondents. From the wei hted avera e method, its observed that Precious #etals* Gold, Gold +E99 ms,, Gold !nternational, Silver, Silver +8k ,, Silver !nternational, Platinum commodities have Est rank of investors preference, ;ner y* -rude Dil, Thermal -oal, commodities havin the Ind Hank of the !nvestors preference. Fibres* .)M5M kapas, Shankar kapas commodities havin the Lrd rank of amon the investors preference. Therefore from the wei hted avera e method ma&orly of the respondents are very hi hly preferrin to invest in the commodities like Precious #etal, ;ner y and Fibres. capacity and precious metals, the

correlation i.e. r value is Ae ative, so there is no relationship between Hisk Takin capacity

9.0 SUGGESTIONS #ost of the investors are in male cate ory. So Share khan Financial Services Pvt. Ltd advised to concentrate more on ettin the investment from female investors also. -ompared to ' ri, ener y, pharmacy sectors, the investors are willin to prefer bullion sector +GDL@,. So the firm should create awareness over other sectors. #ost of the investors ettin the information from their friends, so the firm should increase the no. of e"perts available in the market.

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Some investors are hesitatin to recommend investin in commodity market to other people. So, the firm has to commodity market. The arran ement of e"perts and specialist seminar for investors will help to improve their awareness. The newsletters and special publishin will helps to create hi h awareness of commodity market amon the investors. Throu h appropriate publicity and mass media advertisements the awareness of investors will raise up. The present trend of commodity market should be continuously informed to the investors throu h telephone or other devices. ive proper uidelines to the investors about the investment in

9.1 CONC/USION The study is made to find out the investors preference towards commodity market. The study reveals that commodity market is in a nascent sta e in Gobi. The investment avenues of individual investors depend mainly on annual income and risk takin capacity .The female investors in Gobi are not much aware of commodity market so proper awareness pro ram should be conducted to improve the awareness level of amon them. The ma&or finds of the study is the ma&ority of the respondents preference falls on precious metals.

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