1.

INTRODUCTION

Saving the money is the healthy habit inculcated from the childhood in our country. We
see lot of advertisements to introduce the habit of saving. Saving alone is incomplete when it is
not included with Investment. Hence investment has a major role in the individual’s life as well
the status of the country defined through their investment. The importance of investment lies
with the individual to grow and the country to develop. The development of the country defines
through their investment.
Multi Commodity Exchange of India Ltd (MCX) is an independent commodity
exchange based in India. It was established in 2003 and is based in Mumbai. MCX is the largest
and most diverse commodities exchange.

Angel in India offering more than 40 commodities across various segments such as
bullion, ferrous and non-ferrous metals, and a number of Agri-commodities on its platform. The
Exchange is the world’s largest exchange in Silver, the second largest in Gold, Copper and
Natural Gas and the third largest in Crude Oil futures, with respect to the number of futures
contracts traded.
Investment is the sacrifice of certain present value for the uncertain future reward. It
entails arriving at numerous decisions such as type, mix, amount, timing, grade, etc. of
investment and disinvestment. Further, such decision-making has not only to be continuous but
rational too. Broadly speaking, an investment decision is a tradeoff between risk and return. All
investment choices are made at points of time in accordance with the personal investment ends
and in contemplation of an uncertain future. Since investments in securities are revocable,
investment ends are transient and investment environment is fluid, the reliable bases for reasoned
expectations become more and vaguer as one conceives of the distant future. Investors in
securities will, therefore, from time to time, reappraise and re-evaluate their various

Investment commitments in the light of new information, changed expectations and ends.
Investment choices or decisions are found to be the outcome of three different but related classes
of factors. The first may be described as factual or informational premises. The factual premises
of investment decisions are provided by many streams of data which taken together, represent to
an investor the observable environment and general as well as factors entering into investment

1
decisions may be described as expectation premises. Expectations relating to the outcomes of
alternative investments are subjective and hypothetical in any case but their foundations are
necessarily provided by the environmental and financial facts available to investors. These limit
not only the range of investments which may be undertaken but also the expectations of
outcomes which may legitimately be entertained. The third and final class of factors may be
described as valuation premises.

2
 2. OBJECTIVES OF THE STUDY
1. To study customers preference to words investing in commodity market.
2. To study about major exchanges trading in Indian commodity market.
3. To study the working procedure, trading and settlement mechanism for commodities
(Gold and Silver) In Indian stock exchange.

3
 3. SCOPE OF THE STUDY

The study mainly focuses on Indian commodity market, its history and latest
developments in the country in commodities market (Gold and Silver). The study also keeps a
birds-eye view on global commodity market and its development. The study vastly covered the
aspects of commodity trading (Gold And Silver), clearing and Settlement mechanisms in Indian
commodity exchanges. The scope of the study is limited to Indian commodity market A network
of 2500 business locations spread over 500 cities across India facilitates the smooth acquisition
and servicing of a large customer base. Most of our offices are connected with the corporate
office in Mumbai with cutting edge networking technology. The group helps service more than a
million customers, over a variety of mediums viz. online, we cannot study all the data in the
organization

LIMITATIONS OF THE STUDY

 The survey was confirmed to the surroundings of twin cities Aurangabad.

 The size of sample was only 51.
 The investor’s response could have been biased.
 Time of 6 weeks was constraint for the study.
 Brokers can only transact futures trades if they are registered with the CFTC and the
NFA.
 Only certain types of commodities (Gold and Silver) can be the basis for futures trading.

4
 4. REVIEW OF LITERATURE
Iqbal mahmood (2011) in the research examine the role of various socioeconomic and
demographic factors affecting the investment decision of investors. An investment model was
developed that described the impact of past investment experiences of investors, variation in
regulatory policies, asymmetric information, their marital status, gender, and reinvestment intentions
of investors. They suggested that risk perception performs the key role in the investment decision
process and that the variation in the government policies can impact the risk perception of an
investor. [1]
Nirmal and Balaji (2011) investigated the investors’ opinion about commodities future trading
in India. They have observed that the commodity market was growing that great speed though
derivatives trading commenced in the securities market only in June 2000. They further stated that
institutional players are restricted to participate in commodities further trading in India leading to
retail investors as the major players in this market. The research design chosen is descriptive and the
data were collected. [2]
Sen And Paul (2010) have clearly suggested that future trading in agricultural goods and
especially in food items has neither resulted in price discovery nor less of volatility in food
prices. They observed a steep increase in spot prices for major food items along with a granger
causal link from future to spot prices for commodities on which futures are traded. [3]
Nath and Lingareddy (2007) in their study have attempted to explore the effect of
introducing futures trading on the spot prices of pulses in India. Favoring the destabilization
effect of futures contract, their study found that volatilities of gram and wheat prices were high
during post-futures period than that in the pre-futures period as well as after the ban of futures
contract. [4]

According to N.R. Institute of management Ahmadabad, Investors consider factor like

global economy, availability of commodity and others things during investing in commodity and
earn money by doing technical and fundamental analysis from their brokers. Media and friends
are powerful communicating networks for expansion. It has been that, respondents are investing
their income in diversified portfolio and less risky assets. There has been seen that coffee, wheat
and cotton are more dealing commodity and investor believe that commodity market have good
opportunist market in future and most of investor invest when there is favorable price in market.
The commodity futures markets are experiencing a good growth in the recent past.

5
 Sathish Kumar (2003) after almost two years that commodity trading is finding favor
with Indian investors and is been seen as a separate asset class with good growth opportunities.
For diversification of portfolio beyond shares, fixed deposits and mutual funds, commodity
trading offers a good option for long-term investors and arbitrageurs and speculators. And, now,
with daily global volumes in commodity trading touching three times that of equities, trading in
commodities cannot be ignored by Indian investors. [5]
Online commodity exchanges need to revamp certain laws governing futures in
commodities to make the markets more attractive. The national multi-commodity exchanges
have united proposed to the government that in view of the growth of the commodities market,
foreign institutional investors, too, should be given the go-ahead to invest in commodity futures
in India. Commodity trading in India is poised for a big take-off in India on the back of factors
like global economic recovery and increasing demand from China for commodities.
R. T. Nirmal Kumar (2006) in his study identified that a perception lies with majority of
investors that future trading will lead to profits and it is not used for other purpose like hedging.
The nature of the derivatives instruments are to reduce the risk involved in trading but in real
time investors are not taking derivatives trading for reducing their risk involved in trading and
profit making is considered to be an important factor for the them.[6]
On the other side a number of reforms and initiatives are still needed in promoting India as a
major futures trading hub in tune to the status of being amongst the top five producers of most of
the commodities.

6
 5. RESEARCH METHODOLOGY

Sample Size: 51 people

Data Collection
The study on investment behavior of investors towards commodity market is mainly
based on primary data. The secondary data, such as articles in journals, publications, books
relevant for the research area also used in present study. The target population is retail investors
in commodity market in Aurangabad district. The researcher was able to identify 40 respondents
based on simple random sampling technique.

Research Design
In the present study, researcher has adopted descriptive cum diagnostic design.
1) Population
The population size is 51, who had invested in various financial products in different investment
margin from different places in and around Aurangabad.
2) Sample size
Among those investors 51 investors who had invested in commodities market, had been chosen
for the study.
3) Sampling method
The sampling method adopted for this study is Non-Probability Convenient Sampling.

Tools of Data Collection

Data requiring for the study is obtained from two sources namely (i) primary data source and (ii)
secondary data source:
a. Primary Data: this type of data is collected directly from the respondents by the researcher
using the questionnaire as an instrument and personal interview as the communication medium
for collecting it. The primary data was collected using self prepared questionnaire consisting of 6
socio-demographic and 15 closed ended questions. Owing to the intrusive nature of the
questions, the researcher was hesitant about the validity of the response.

7
Pre testing
The questionnaire was pre tested on 10 investors. However, the respondents answered the
questions without any trouble; minor changes were made in the questionnaire such as reducing
the number of questions. The questionnaire was then subjected to approval from academic
experts and then necessary changes were made to convert into a standardized one. Printed
questionnaire was given to about 60 investors; among which 60 completed questionnaires were
received and used for data analysis.

b. Secondary data: Secondary data for study have been extracted from Reference books, Web
pages, company booklets, etc

Hypothesis
H1: There is a significant difference between investors’ monthly income and technical analysis
regarding before investment in commodity market.

8
 6. COMMODITY MARKET

A commodity market is a place where buyers and sellers can trade any homogenous
good in bulk. Grain, precious metals, electricity, oil, beef, orange juice and natural gas are
traditional examples of commodities, but foreign currencies, emissions credits, bandwidth, and
certain financial instruments are also part of today's commodity markets.

Five Different Commodities with Their Fluctuations Regarding Few Years

GOLD

It is the oldest precious metal know to man and for thousands of years it has been valued as a
global currency, a commodity, an investment and simply an object of beauty.

• Gold is primarily a monetary asset and partly a commodity.

• Gold is the world’s oldest international currency.

• Gold is an important element of global monetary reserves.

• Less than one-third of gold’s total accumulated holdings are used as “commodity” for jeweler
in the western markets and industry Demand and Supply

• World investment amounted to 2345 MT in 2013, broadly flat year on year, but the
approximate value of this demand reached a new record of almost $87 billion.

• India, world’s largest market for gold jewellery and a key driver of the global gold demand.

• The domestic drivers of gold demand are largely independent of outside forces. Indian
households hold the largest stock of world in India.

• Two-third of the Indian demand for gold comes from the rural parts of the country.

Factors Influencing the Market

• Above ground supply of gold from central bank’s sale, reclaimed scarp, and official gold loans.

• Hedging interest of producers / miners.

9
• World macroeconomics factors such as the US dollars, interest rates and economic events.

• In India, the gold demand is also determined to a large extent by its price level and volatility.

SILVER

• Silver is a brilliant grey-white metal that is soft and malleable.

• Silver’s unique properties include its strength, malleability, ductility, electrical and thermal
conductivity and reactivity.

• The main source of silver is lead ore, although it can also be found associated with copper,
zinc, and gold produce as a by-product of base metal mining activities.

• Secondary silver sources include coin melt, scrap recovery, and dis-hoarding from countries
where export is restricted. Demand and Supply

• In 2013, the worldwide silver fabrication demand was 876.6 million ounces (Moz)-down by
1.5% from the value in 2012, but still reaching its second highest level since 2000.

• Globally, in 2014 the physical silver bar investment grew by 67% to 95.7 Moz, while
fabrication of coins and medals rose by almost 19% to an all-time high of 118.2 Moz.

• The world silver mine production increased by 1.4% to a new record level of 761.6 Moz in
2014, as compared to previous year.

CRUDE OIL

• Crude oil is a complex mixture of various hydrocarbons found in the upper layers of the
earth’s crust.

• Crude oil is often attributed as the “Mother of all Commodities” because of its importance in
the manufacturing of a wide variety of materials.

• Crude oil accounts for 35% of the world’s primary energy consumption.

• Crude oil is used to produce fuel for cars, trucks, airplanes, boats and train.

10
Indian Scenario

• Oil accounts for 29% of India’s total energy consumption and there seems to be no possibility
of scaling down the dependence of these fuels.

• Crude oil production during the period April-march 2013 (provisional) was 38.19 million
metric tone (MMT), as compared with 37.71 MMT during the corresponding period last year.

• India’s refining capacity stood at 193.39 MMTPA on January 1, 2013of which 116.89 MMT is
in the public sector, 6.00 MMT in joint ventures, and the balance 70.50 MMTPA in the private
sector. Price Moving Factor

• OPEC output, supply and spare capacities.

• Increased demand from emerging and developing countries; geopolitics.

• US crude and products inventories data.

• Currency fluctuations.

• Weather conditions.

• Speculative buying and selling.

NICKEL

• Nickel is a metal with a bright future as it is the main alloying metal needed in the production
of certain types of stainless steel.

• The strength and life span of products manufactured using stainless steel are superior to the
one’s produced using non-stainless steels. Demand and Supply

• World production of primary Nickel during 2014 was 1.612 million metric tone (MMT), up by
11.53% as compared with 1.446 MMT in 2012. Whereas, the world’s consumption during
2013was at 1.608 MMY vis-à-vis 1.465 MMT in 2012, up by 9.76%.

11
Indian Scenario

• The annual demand for nickel in India is around 40,000 MT and its market in India is totally
dependent on imports. Factors Influencing the Market

• Nickel prices in India are fixed on the basis of the rates that rule on the international spot
market, and Indian rupee and US dollar exchange rates.

• Economic events such as national industrial growth, global financial crisis, recession and
inflation effect metal prices.

• Trade policy set by government affect supply as they regulate material flow.

• As societies develop, their demand for metal increases based on their current economics
position, which could also be referred as ‘National Economic Growth Factor’.

COPPER

• Copper is a malleable and ductile metallic element that is an excellent conductor of heat and
electricity. It is also corrosion resistant and antimicrobial.

• It stands at the third place after steel and aluminium, in the context of consumption.

• Copper is an important contributor to the national economies of mature, newly developed and
developing countries.

• Copper is one of the most recycled of all metals. It is our ability to recycle metals over again
that makes them material of choice. Demand and Supply

• In 2014, world’s copper mine production continued to underperform with respect to capacity,
and remained at the 2013 level of 16.005 million metric tone (MMY).

• In 2014, the global refined copper production was 19.630 MMT, up from 18.998 MMT in
2013.

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 7. HISTORY

Commodities Futures trading in India have a long history. The first commodity futures
market appeared in 1875. But the new standardized form of trading in the Indian capital market
is an attractive package for all the people who earn money through speculation by trading into
FUTURES. It is a well-known fact and should be remembered that the trading in commodities
through futures’ exchanges is merely, “Old wine in a new bottle”

According to the New York Mercantile Exchange "A market will flourish for almost
any commodity as long as there is an active pool of buyers and sellers. There is no telling
what will lubricate the wheels of commerce cat pelts were once a hot item in St. Louis, and today
dried cocoons are a major exchange-traded commodity in Japan."

To be considered a commodity, an item must satisfy three conditions: It must be

standardized, and for agricultural and industrial commodities it must be in a "raw" state; it must
be usable (i.e., have a shelf life) upon delivery; and its price must vary enough to justify creating
a market for the item.

Buyers and sellers can trade a commodity either in the spot market (sometimes called
the cash market), whereby the buyer and seller immediately complete their transaction based on
current prices, or in the futures market.

The Commodity Futures Trading Commission (CFTC) regulates

commodities futures trading through its enforcement of the Commodity Exchange Act of 1974
and the Commodity Futures Modernization Act of 2000. The CFTC works to ensure the
competitiveness, efficiency and integrity of the commodities futures markets and protects against
manipulation, abusive trading and fraud.

There are six major commodity exchanges in the U.S.: The New York Mercantile
Exchange, the Chicago Board of Trade, the Chicago Mercantile Exchange, the Chicago Board of
Options Exchange, the Kansas City Board of Trade, and the Minneapolis Grain Exchange. The
New York Mercantile Exchange Inc. is the world's largest physical commodity futures exchange.

13
When the hours for open outcry and electronic trading are combined, some exchanges
are open for nearly 22 hours a day.

Commodities exchanges do not set the prices of the traded commodities. Rather, supply
and demand determines commodities prices. Exchange members, who act on behalf of their
customers or themselves, engage in open-outcry auctions in pits on the exchange floors. During
an open-outcry auction, buyers and sellers announce their bids and offers. When two parties
agree on a price, the trade is recorded both manually and electronically. The exchange then
disseminates the price information to news services and other reporting agencies around the
world.

Commodities exchanges guarantee each trade using clearing members who are
responsible for managing the payments between buyer and seller. Clearing members, which are
usually large banks and financial services companies, require traders to make good-faith deposits
(called margins) in order to ensure they have sufficient funds to handle potential losses and will
not default on the trade. The risk borne by clearing members lends further support to the strict
quality, quantity and delivery specifications of commodities futures contracts.

Commodities are the raw materials used by virtually everyone. The orange juice on your
breakfast table, the gas in your car, the meat on your dinner plate and the cotton in your shirt all
probably interacted with a commodities exchange at one point. Commodities-exchange prices set
or at least influence the prices of many goods used by companies and individuals around the
globe. Changes in commodity prices can affect entire segments of an economy, and these
changes can in turn spur political action (in the form of subsidies, tax changes or other policy
shifts) and social action (in the form of substitution, innovation or other supply-and-demand
activity).

Most buyers and sellers trade commodities on the futures markets because many commodity
producers, especially those of traditional commodities like grain, bear the risk of potentially
negative price changes when their products are finally ready for the market. Futures contracts,
whereby the buyer purchases the obligation to receive a specific quantity of the commodity at a
specific date, therefore offer some price stability to commodity producers and commodity users.

14
In general, however, the liquidity and stability of the commodities markets helps producers,
manufacturers, other companies and even entire economies operate more efficiently and more
competitively.

What is the Commodity Market?

A commodity market is a physical or virtual marketplace for buying, selling and trading
raw or primary products, and there are currently about 50 major commodity markets worldwide
that facilitate investment trade in approximately 100 primary commodities.

Commodities are split into two types: hard and soft commodities. Hard commodities are
typically natural resources that must be mined or extracted (such as gold, rubber and oil),
whereas soft commodities are agricultural products or livestock (such as corn, wheat, coffee,
sugar, soybeans and pork).

15
 8. COMPANY PROFILE

History of the organization

Edelweiss is one of India’s leading diversified financial services Group. Edelweiss offers
a large range of products and services spanning across asset classes and consumer segments.

Its businesses are broadly divided into Credit including Retail Finance and Debt Capital
Markets, Commodities, Financial Markets, Asset Management and Life Insurance.

The Name Edelweiss, is a derivation of German words, ‘edel’ (noble) and ‘Weiss’
(white) and has long been associated with purity, romance and nobility.

The group’s research driven approach and proven history of innovation has enabled it to
foster strong relationships across corporate, institutional and individual clients. The Life
Insurance, Retail Finance including Housing Finance, Mutual Fund and Retail Broking
businesses – both online and offline formats, have paved the way for Edelweiss to cater to the
large retail client segment. Edelweiss’ presence now covers 240 offices in 125 cities including
eight international offices with 5,555 employees catering to over 572,000 clients across various
businesses in retail and wholesale segments.

Edelweiss is future-ready. The company has already made proactive business investments
to service emerging customer needs on the one hand, and enhance stakeholder value on the other.

Diversification

Over the years, Edelweiss progressively widened its services basket by moving into
adjacent business spaces. Edelweiss was a purely capital market-focused player a few years ago;
this business accounts for only about a third of its revenues today. As Edelweiss continues to
broad base revenues, a rising proportion of growth will be derived from its Credit, Asset
Management, Commodities and Insurance businesses.

16
Strong and liquid balance sheet

Edelweiss possessed a balance sheet size at the end of FY 12 of over INR 145 Bn with a
net worth of over INR 28 Bn. Edelweiss focuses on low gearing that provided the organization
with sufficient headroom to fund growth without comprising its balance sheet integrity.

Risk management

Edelweiss’ risk mitigation practices are strengthened through timely investments in

people, processes and IT capabilities on the one hand, and credible governance practices
stewarded by an industry-renowned Board on the other.

People

Edelweiss cultivates a culture of entrepreneurship and ownership among its people. The
Group continues to invest in developing leadership and managerial talent across the organization
through a four-tier system of identifying, nurturing and mentoring leaders.

Processes

Edelweiss has undertaken a significant restructuring of its business to enhance

operational efficiencies, dividing the organization into two operational clusters; Wholesale and
Retail and SBU groupings that provide the scale and ergonomic growth. The company has
carried out a visioning exercise with a roll-down across the organization to ensure clear
articulation of its growth aspirations.

Execution expertise

Edelweiss’ focus on error free and timely execution across businesses represents the core
of its success. It possesses strong project teams that focus on processes, reviews and deliverables.
Whenever necessary, it re-engineers processes and innovates state-of-the-art technology
solutions that enhance efficiency.

17
Brand

The Edelweiss brand is a much respected brand enjoying widespread recognition due to
consistent investment in diverse set of brand building efforts spanning both conventional and
unconventional channels. The ‘Ideas create, values protect’ tagline underlines all branding
efforts. A testament to the quality of the reputation being enjoyed by Edelweiss is the fact that
Super brands India has recognized Edelweiss as the Business Super brand in the year 2011.

18
 9. INDUSTRY PROFILE

The businesses of Edelweiss are organized around four broad lines – Credit including
Retail Finance, Agency businesses including Financial Markets, Agri & Commodity services and
Asset Management, Life Insurance and Balance Sheet Management Unit. Life Insurance and
Retail Finance businesses have been launched recently and are the newest businesses of the
group. The Credit Business includes structured collateralized

Finance to Corporate, loans against securities and Retail Finance which encompasses
housing finance including small ticket housing loans, rural finance, loans against property and
SME finance.

Within the Agency Businesses, Financial Markets businesses include corporate finance
advisory, brokerage services – institutional, HNI and retail, wealth management, financial
products distribution and Fixed Income Advisory. Agri & Commodity services business includes
sourcing and distribution of agri commodities, commodity services, precious metals and a gold
refinery. The Asset Management business includes illiquid alternatives, liquid alternatives, retail
asset management and asset reconstruction businesses.

Credit

With a deep knowledge and understanding of financial markets backed by strong

origination capabilities, the Company’s primary offering in the financing business includes
collateralized loan products such as collateralized loans to corporate, structured finance, real
estate finance, loans against securities, Public Issue finance, loans against ESOPs and margin
funding etc. Mid-to-large corporate constitutes its key clientele. Our prudent financing norms,
strong risk management and a conservative margin of safety (typical collateral cover ranges from
2x to3x) ensures low non–performing loans. Edelweiss continues to work on new product
offerings around other asset classes.

Credit business of Edelweiss offers five broad products –

1. Mortgages including home finance,

2. loan against property and real estate finance,
3. Structured Collateralized Credit to corporate where we provide customized solutions,

19
 4. Distressed Assets Credit through our Asset Reconstruction Company,
5. SME and Agri financing, and Loan against securities, rural finance & other loans.

These five broad products provide us with the intended diversification in our credit
business thereby reducing the concentration risk. While wholesale credit Products caters to niche
markets, retail segment loans provide the desired potential for scaling up in a vast
Underpenetrated market like India.

20
FOUNDERS & PROMOTERS

Mr. Rashesh Shah, Chairman & CEO

Mr. Shah, co-founder of the Company has over 20 years of diverse experience in the
financial services industry in India and has been instrumental in building Edelweiss into one of
India's leading diversified financial services companies. Rashesh serves on the Boards of various
companies and public institutions. He has previously been on the Executive Committee of the
National Stock Exchange and also on the SEBI (Stock Exchange Board of India) committee to
review Insider Trading Regulations. He currently serves as Chairman, Maharashtra Council of
FICCI. His academic qualifications include an MBA from Maharashtra Institute of Management,
Aurangabad, and Diploma in International Trade from the Indian Institute of Foreign Trade.

Prior to founding Edelweiss, he worked with ICICI, then India’s premier industrial
development bank and today its largest private sector bank. In 1996, encouraged by the
opportunity in the financial services sector as a result of economic reforms and liberalization in
India, Rashesh founded Edelweiss with initial equity capital of INR 1 Cr (USD 250,000). Since
then, Edelweiss has grown into a large diversified financial services house offering Credit,
Capital Market, Asset Management, Housing Finance and Insurance products to a wide range of
Institutional, Corporate and Individual customers. From 10 employees in 2000, Edelweiss is now
3,500 employees strong, with a net worth of over USD 500 MN.

Rashesh’s focus on innovation and his passion for growth through expansion into
related/adjacent markets has been a key differentiator for Edelweiss. Under his leadership, the
company has combined growth oriented entrepreneurship with a strong focus on risk. The
company’s consistent growth can be attributed to the culture of ownership and partnership that is
nurtured amongst the employees of Edelweiss. A pioneering move to reward those who built
Edelweiss with ESOPs has resulted in one of the most broad-based employee-ownerships among
financial services companies in India.

Rashesh has served on the Boards of various companies and public institutions. He has in
the past served on the Executive Committee of the National Stock Exchange and has recently
been appointed as Chairman, Maharashtra Council of FICCI. He also chairs the National Council

21
on Capital Markets formed by ASSOCHAM. He has been nominated to the Executive
Committee of a proposed US - India Investors Forum.

Besides writing regularly for various leading business dailies and publications in India,
Rashesh’s views on the Indian economy and policy issues are regularly sought by leading Indian
and global business journals. He is also a regular speaker at various industry and economic
forums.

Among the several accolades Rashesh has received, are the ‘Entrepreneur of the Year’ award
from Bombay Management Association (2008-2009) and the ‘Special Award for Contribution to
Development of Capital Markets in India’ by Zee Business at the India’s Best Market Analyst
Awards, 2011.

A voracious reader and keen tennis player, Rashesh’s current passion is running
marathons.

VISION

 To be a high quality organization

 Recognized as the most reliable and trusted advisor
 To be one of the most exciting places to work in the country

MISSION

 To be a most excited place to work

22
 10.DATA ANALYSIS AND DATA INTERPRETATION

1. Gender:

Table no.1
Sr.no Gender No. of responses Percentage
1 Female 47 9.8
2 Male 4 90.2
Total 51 100

Interpretation: From the above table we can interpret that there are 90.2% are male and 9.8% are
women.

23
 2. Age:

Sr.no Age No. of responses Percentage

1 20-30 19 37.3
2 30-40 18 35.3
3 40-50 10 19.6
4 50 above 4 7.8
Total 51 100

Table no. 2

Interpretation: From the above data we can interpret that the age of the people is in between 20-
30 are the investor

24
HYPOTHESES USED FOR THE STUDY:

1. There is no significant difference between Gender of investors with respect to Factors of

Perception of Investors of CDM (Commodity Derivatives Market)

2. There is no significant difference between Age Group of Investors with respect to Factors
of Perception of Investors of CDM.

3. There is no significant difference between the Educational Qualifications of Investors

with respect to Factors of Perception of Investors of CDM.

4. There is no significant difference between Occupation of Investors with respect to

Factors of Perception of Investors of CDM.

5. There is no significant difference between CDM Experience of Investors with respect to

Factors of Perception of Investors of CDM.

6. There is no significant difference between Monthly Income of Investors with respect to

Factors of Perception of Investors of CDM.

25
Que.1 What is your occupation?

Sr.no Que.1 No. of responses Percentage

1 Government Employee 6 11.8
2 Business Man 14 27.5
3 Private Employee 28 54.9
4 Other 3 5.9
Total 51 100

Interpretation: From the above table we can interpret that 54.9% peoples are working as private
employee, 27.5% are business man, and 11.8% are government employee.

26
Que.2 What is your annual income?

Table no. 2
Sr.no Que.2 No. of responses Percentage
1 Below 50000 5 9.8
2 50000 - 100000 2 3.9
3 100000 - 300000 5 9.8
4 Above 300000 39 76.5
Total 51 100

Interpretation: From above data we can interpret most of the respondents have annual income
more than 300000 i.e. 39 people i.e. 76.5%, 5 people that is 9.8% people have income in between
100000-300000, 9.8% people have income in between 50000 to 100000.

27
Que.3 What is your monthly income?

Table no. 3
Sr.no Que.3 No. of responses Percentage
1 Above 15000 3 5.9
2 Above 25000 16 31.4
3 Above 35000 14 27.5
4 Above 50000 18 35.3
Total 51 100

Interpretation: From above data we can interpret that 18 people are having monthly income more
than 50000, 16 people having income more than 25000, and 14 people having income more than
35000.

28
Que.4 Do you know about commodity market?

Table no. 4
Sr.no Que.4 No. of responses Percentage
1 Yes 43 84.3
2 No 6 3.9
3 May be 2 11.8
4 Can’t say 0 0
Total 51 100

Interpretation: From the above data we can interpret that most of the people are known about the
commodity market that is 43 people know about commodity market, 6 people don’t know about
commodity market.

29
Que.5 How much you invest in commodity market?

Table no. 5
Sr.no Que.5 No. of responses Percentage
1 More than 50000 16 31.4
2 More than 100000 13 25.5
3 More than 300000 9 17.7
4 More than 50000 13 25.5
Total 51 100

Interpretation: From the above data we can interpret that 16 people are investing more than
50000, 13 people invest more than 100000, 13 people invest more than 50000 and 9 people
invest more than 300000.

30
Que. 6 If yes, how long you are trending?

Table no. 6
Sr.no Que.6 No. of responses Percentage
1 Below one year 22 43.1
2 1 - 2 year 8 15.7
3 2 - 3 year 7 13.7
4 More than 3 year 14 27.5
Total 51 100

Interpretation: From the above data we can interpret that 22 people are invest for below than one
year,14 people are invest for the more than 3 year,8 people are invest foe 1-2 year.

31
Que. 7 If no, then why are you not trending in commodity market?

Table no.7
Sr.no Que.7 No. of responses Percentage
1 No proper information 21 47.7
2 Being risky 0 2
3 Not interested 2 2
4 Any other 21 47.7
Total 51 100

Interpretation: From the above data we can interpret that 21 people don’t have proper
information about the commodity market and 21 people have other reason for not invest in the
commodity market.

32
Que. 8 Your opinion about commodity market

Table no. 8
Sr.no Que.8 No. of responses Percentage
1 Risky 9 17.6
2 Less risky 11 21.6
3 High risky 2 3.9
4 None of these 29 56.9
Total 51 100

Interpretation: From the above data we can interpret that 29 people don’t have any opinion about
the commodity market, 11 people think that commodity market is less risky.

33
Que. 9 From whom you will get investment advice?

Table no. 9
Sr.no Que.9 No. of responses Percentage
1 Friends 17 34
2 Family 21 42
3 Consultant 8 16
4 Other 4 8
Total 51 100

Interpretation: From the above data we can interpret that 21 people that is 42% respondent says
that they get investment advice from their family, 17 that is 34% respondent says that they get
investment advice from their friends, 8 people that is 16% says that they get investment advice
from the consultant and 4 people that is 8% says that they get advice from others.

34
Que. 10 You prefer which type of investment?

Table no. 10
Sr.no Que.10 No. of responses Percentage
1 Long term 39 76.5
2 Short term 9 17.6
3 Medium term 2 3.9
4 None of these 1 2
Total 51 100

Interpretation: From the above we can interpret that 39 people that is 76.5% respondent are
invest in long term investment, 9 people that is 17.6% respondent are invest in short term
investment and 2% people don’t invest in anywhere.

35
Que. 11 In which commodity customer like to invest?

Table no. 11
Sr.no Que.11 No. of responses Percentage
1 Gold 51 100
2 Silver 0 0
3 Nickel 0 0
4 Copper 0 0
Total 51 100

Interpretation: From the above data we can interpret that most of the people are invest in gold.

36
Que. 12 Why commodity prices are fluctuating?

Table no. 12
Sr.no Que.12 No. of responses Percentage
1 Government condition 19 38
2 Supply of commodity 20 40
3 Demand of product 5 10
4 All of the above 6 12
Total 51 100

Interpretation: From the above data we can interpret that 38% people think that the price of
commodity is fluctuating because the government condition, 40% people think the price of
commodity fluctuating because of supply of the commodity, 10% people think that it is because
of the demand of the product.

37
Que. 13 Is one commodity fluctuation affects other one?

Table no. 13
Sr.no Que.13 No. of responses Percentage
1 Yes 39 79.6
2 No 2 4.1
3 May be 6 12.2
4 Can’t say 2 4.1
Total 51 100

Interpretation: From the above data we can interpret that 79.6% people says that the fluctuation
of commodity affect one another, 4.1% people says that fluctuation of commodity don’t affect
one another.

38
Que. 14 Up to how much profit you again?

Table no. 14
Sr.no Que.14 No. of response Percentage
1 High 29 56.9
2 Medium 17 33.3
3 Low 3 5.9
4 Very low 2 3.9
Total 51 100

Interpretation: From the above data we can interpret that 56.9% people says that they gain high
profit,17 people that is 33.3% respondent says that they gain medium profit and rest of the
people says that they gain low and very low profit.

39
Que. 15 Up to now how much losses you gain?

Table no.15
Sr.no Que.15 No. of responses Percentage
1 High 4 7.8
2 Medium 4 7.8
3 Low 11 21.6
4 Very low 32 62.7
Total 51 100

Interpretation: From the above data e can interpret that 4 people that is 7.8% respondent gain
high losses,11 people says that they gain low losses and most of the people that is 62.7%
respondent gain very low losses.

40
Que. 16 Is there any common phenomenon in between all commodities to fluctuation?

Table no.16
Sr.no Que.16 No. of responses Percentage
1 Price changes 24 47.1
2 Demand of product 19 37.3
3 Market Condition 6 11.8
4 Supply is more 2 3.9
Total 51 100

Interpretation: From the above data we can interpret that 47.1% people says that phenomenon in
between all commodities to fluctuation is the price changes,37.3% people says that demand of
the product is the reason behind the fluctuation of the commodities and 11.8 % says that market
condition is the reason behind the fluctuation of the commodities.

41
Que. 17 Many are prefer gold is there any reason

Table no. 17
Sr.no Que.17 No. of responses Percentage
1 It is precious metal 20 40
2 Cost is high 28 56
3 Supply is high 2 4
4 Low demand 0 0
Total 51 100

Interpretation: From the above data we can interpret that 20 people that is 40% respondent says
that the gold is precious metal, 28 people that is 56% respondent say that the cost of gold is high
and the 2 people that is 4% respondent say that the supply of the gold is high.

42
Que. 18 Main factor which influences commodity prices

Table no.18
Sr.no Que.18 No. of responses Percentage
1 Inflation 6 12
2 Interest rate 38 76
3 Global crisis 1 2
4 Values of US dollar 5 10
Total 51 100

Interpretation: From the above data we can interpret that 38 people says that main factor
influence commodity price is the interest rate, 6 people says that inflation is the main factor for
influence commodity price and 5 people says that US dollar is the reason behind the influence
commodity price.

43
Que. 19 Commodity market is controlled by

Table no.19
Sr.no Que.19 No. of responses Percentage
1 SEBI 38 76
Forward market
2 commission 4 8
3 RBI 7 14
4 None of these 1 2
Total 51 100

Interpretation: From the above data we can interpret that 38 people says that commodity market
is control by the SEBI, 4 people says that the commodity market control by the forward market
commission and 7 people says that commodity market is influence by the RBI.

44
Que. 20 What made consumer to trade in commodity market?

Table no.20
Sr.no Que.20 No. of responses Percentage
1 Profit 46 92
2 Speculation 3 6
3 Less risky 1 2
4 Amy other 0 0
Total 51 100

Interpretation: From the above data we can interpret that 46 people says that they trade in
commodity market for the profit.

45
 11.Findings and Suggestions

Followings are the finding of the research conducted on 51 people.

 In the survey it has been found that majority of respondent are aware about the
commodity market and most of them are investing in the commodity market.
 Most of the people are like to invest in the gold because of its high price, good returns
and it is precious metal.
 People who are invest in the commodity market gain high profit and low losses.
 Most of the people are trade in the commodity market for the profit purpose.

Suggestions:

 The investors are suggested to consider technical analysis first followed by market trend
before making investments.
 Investor has to discuss about the market condition and performance with the share broker
and dealers beyond discussing only with friend to make efficient investment decisions.
 Investors prefer to invest in commodity market so as to minimize the risk of their
investment.

46
 12.Conclusion

Finally the research conclude with investment behavior of investors and their
attitude towards commodities market investments, that is the different respondents
consider the different factors to take their investment decisions particularly in
commodities market investments, because it is having more both risk and return factors,
if the company advice the make the respondents to know the long benefits, they will also
turn their eyes on commodities market. Particularly the Bullions have more value and
being traded in huge volume per day. If the respondents invest in these products, they can
gain more profit, but the company has to trade and give service effectively to satisfy the
investor’s investment needs. Long term investments are highly suggestible than short
term investment, because long term investments give a stable return for long time also it
will make the investors to increase their knowledge in commodities market products and
its trend and directions.

47
 References

[1] Iqbal Mahmood, H. A. (2011). Behavioral implications of investors for investments in the stock
market. European journal of social science 20.

[2] Nilanjana Kumari, (2014). “India’s Foreign Trade with China with Special Reference to
Agricultural Commodities”, ABHINAV National Monthly Refereed Journal of Research in
Commerce & special Reference to Puducherry, India”, ZENITH international journal of Business
Economics and Management research, Vol.1, No.2, November, Pp.175-189.

[3] Sen And Paul Gupta, S.P., Statistical methods, 3rd ed., New Delhi, Sultan Chand & sons,
2004.
[4] Nath and Lingareddy Role Of Behavioural Finance in Investment Decision Making- A
Study on Select Districts of Andhra Pradesh INDIA International journal in Multidisciplinary
and Academic Research (SSIJMAR)

[5] Sathish Kumar Research Methodology- C R Kothari Gaurav Garg 3rd edition new age
international publishers.

[6] R. T. Nirmal Kumar Kothari, C.R., Research methodology – methods & techniques, 2nd
ed., New Delhi, wishwa prakshan.

48
QUESTIONNAIRE

Name:

Gender:

Age:

1) What is your occupation?

a) Government employee b) Private employee

c) Student d) Business man

2) What is your annual income?

a) Below 50000 b) 50000 to 100000

c) 100000 to 300000 d) above 300000

3) What is yours monthly income?

a) Above 15000 b) Above 25000

c) Above 35000 d) Above 50000

4) How much you invest in commodity market?

a) More than 50000 b) More than 100000

c) More than 3000000 d) More than 500000

5) Do you know about commodity market?

a) Yes b) No

6) If yes, how long you are trading in

a) Below one year b) 1-2 years

c) 2- 3 years d) More than 3 year

49
7) If no, then why are you not trading in commodity market?

a) No proper information b) Being risky

c) Not interested d) Any other

8) Your opinion about commodity market

a) Risky b) Less risky

c) High risky d) None of these.

9) From whom you will get investment advice

a) Friends b) Family

c) Consultant d) Others

10) You prefer which type of investment

a) Long term b) Short term

c) Medium term d)more than 10 years

11) In which commodity the customer like to invest?

a) Gold b) silver

C) Nickel d) Copper

12) Why commodity prices are fluctuating

a) Government conditions b) supply of commodity

c) Demand of product d) all of the above

13) Is one commodity fluctuation affects other one

a) Yes b) No

c)May be d)Can’t say

50
14) Up to now how much profits/losses you gain

A) High b) Medium

c) Low d) Very low

15) Is there any common phenomenon is there between all commodities to fluctuations

a) Price changes b) Demand of products

c) Market conditions d) Supply is more

16) Many are prefer gold is there any reason

a) It is precious metal b) Cost is high

c) Supply is high d) Low demand

17) Main factor which influences commodity prices

a) Inflation b) Interest rates

c) Global crisis d) Value of us dollar

18) Commodity market is controlled by

a) SEBI b) forward market commission

c) RBI d) None of these

19) What made consumers to trade in commodity market

a) Profit b) Speculation

c) Less risky d) Any others

20) What made consumer to trade in commodity market?

a) Profit b) Speculation

c) Less Risky d) Any other

51