INVESTOR’S SATISFACTION TOWARDS

INVESTMENT IN STOCK MARKET

BY
PRARTHANA BHATT
MB006 (BATCH-21)

SUBMITTED TO

MAY-JUNE, 2019

CENTRE FOR MANAGEMENT STUDIES

DHARAMSINH DESAI UNIVERSITY
NADIAD

1
 CERTIFICATE

This is to certify that Ms. Prarthana Bhatt has satisfactorily completed his summer
internship from 1 st May, 2019 to 30th June, 2019 and prepared a project report titled
Investor‟s satisfaction towards investment in stock market under my supervision and
guidance.

During the internship we found him sincere, hardworking & result oriented.

We wish him all the very best for his future endeavours.

Prof (Dr.) Naresh K. Patel Prof. Hardik Shah

Dean Faculty Guide
Faculty of Management and Information Science
Dharamsinh Desai University
Nadiad.

Date:

Place:

2
 PREFACE

Practical training has been incorporating the studies of MBA, which make the management
studies to conclude themselves with the practical vision of management. This is very
important and useful as it cultivates in the student understanding of professionalism and
makes them ready to face the real life challenges in their concerned future. Thus a student
gets the practical training in the industry of the theoretical aspects learned in the classroom.

The main purpose of practical training is to develop experimental knowledge and

consciousness about the industrial environment and business practices in the students as an
augmentation to theoretical studies of administration and management in specific area like
Finance, Marketing, HRM, Operations, etc. it increases the skill, abilities and attitude to
perform specific job in industrial environment.

I got the golden opportunity to visit and complete my two months summer internship
programme training at TRADEBULLS SECURITIES PRIVATE LIMITED. I got a
chance to see the functioning of the Quality management and absorb a lot of learning of
subjects.

3
 ACKNOWLEDGEMENT

It was a great opportunity for me to get Summer Training with a financial

organization like “TRADEBULLS SECURITIES PVT. LTD.”

I am very glad to present this report before you all whose work and ideas have been
so helpful in working out on this project report. As I carried our way towards the
completion of this project, I had many people involved directly or indirectly and all
guiding me, directing and motivating me towards attaining my goal.

I would like to acknowledge the following who contributed materially towards the
project. First I would like to thank MR.RUSHABH SHAH (ASST. MANAGER
HUMAN RESOURCES), MR.KEYUR SONI (AREA DEVELOPMENT
MANAGER), MR.VINAY TAK (SALES MANAGER) and all administrative staff
of Tradebulls Securities Pvt. Ltd. for their guidance and support.

I am greatly thankful to the directors Mr.Dinesh Thakkar, Mr.Arvind Thakkar,

Mr.Aasif Hirani and Mr.Dhruv Desai for giving me opportunity to work in Tradebulls
Securities Pvt. Ltd.

Last but not least, I am thankful to CENTER FOR MANAGEMENT STUDIES,

DHARAMSINH DESAI UNIVERSITY for including this project as an aspect of
our M.B.A programme, which exposes to actual business environment.

4
 DECLARATION

I PRARTHANA BHATT, hereby declare that the report for “Summer Internship
Project Report” entitle “A STUDY ON INVESTOR’S SATISFACTION
TOWARDS INVESTMENT IN STOCK MARKET” is a result of my own work
and my indebtedness to other work publications, reference, if any, have been duly
acknowledged.

Date:

Place: Ahmedabad

PRARTHANA BHATT

5
 EXECUTIVE SUMMARY

This project titled “Investor’s Satisfaction Towards Investment in Stock Market”

describes about the Investor‟s satisfaction level towards their investment in stock market.
Now a days stock market is considered as a one the important source for investment along
with other sources of investment.

The methodological approach to this study is descriptive, because we attempt to identify and
explain variable that exist in a given situation and to describe the relationship that exists
between the different variable which affect customer attitude towards investment in stock
market. The primary data was collected though questionnaire filling by the clients of the
broking firms. The secondary data was collected from journals and websites.

India has a large population which is at lower-income level and middle-income level. There
is a need of creating awareness among them for share trading and the tremendous potential it
has. Now with the advantage of technology there are many options available to the traders
which they can use without any fear. The trend is moving towards the investment in stock
market for long term. The traders are more of young age and middle age and don‟t fear from
risk taking but the lack of knowledge doesn‟t allow them to do so. So, the stock broking
companies should take measures to empower the normal investors so that they can trade with
the latest technological available.

Target the youth as they are most potential customers of the stock market as their interest
towards stock trading is increasing. The stock broking companies should educate the
investors by giving them timely help in the form of reports and tips. The companies should
try to work in more transparent way. People prefer ease of transaction and security, so
brokerage companies should focus on security and making transactions as simple as possible
with sample usage of technology.

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 Table of Content

SR No. PARTICULAR PAGE

No.

Certificate 2
Preface 3
Acknowledgement 4
Declaration 5
Executive summary 6
Ch.1 About Industry 12
Ch2 Company Profile 32
Ch3 Primary Study 36
3.1 Introduction to study 37
3.2 Literature Review 38
3.3 Background of the study 40
3.4 Problem Statement 41
3.5 Objective of the study 42
Ch4 Research Methodology 43
4.1 Research Design 44
4.2 Data collection method 45
4.3 Sampling method 46
Ch5 Analysis & Interpretation 47
5.1 Respondent‟s Gender analysis 48
5.2 Respondent‟s Occupation analysis 49
5.3 Respondent‟s Income analysis 50
5.4 Respondent‟s decision regarding investment Analysis 51
5.5 Respondent‟s preference market for investment Analysis 52
5.6 Respondent‟s investment objective Analysis 53
5.7 Respondent‟s expected benefits for investment Analysis 54

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5.8 Respondent‟s expected rate for investment Analysis 55
5.9 Respondent‟s reference for investment Analysis 56
5.10 Respondent‟s different parameters for investment Analysis 57

5.11 Respondents decision regarding buying/selling shares Analysis 58

5.12 Respondent‟s difficulties for investment in stock market Analysis 59

5.13 Respondent‟s decision for not investing in stock market Analysis 60

Ch6 Findings 61

Ch7 Recommendation 63

Ch8 Conclusion 65

Limitation 67

Bibliography 68
References 69
Annexure 70

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 LIST OF TABLE

SR No. PARTICULAR PAGE

No.

5.1 Respondent‟s Gender analysis 48

5.2 Respondent‟s Occupation analysis 49
5.3 Respondent‟s Income analysis 50
5.4 Respondent‟s decision regarding investment Analysis 51
5.5 Respondent‟s preference market for investment Analysis 52
5.6 Respondent‟s investment objective Analysis 53
5.7 Respondent‟s expected benefits for investment Analysis 54
5.8 Respondent‟s expected rate for investment Analysis 55
5.9 Respondent‟s reference for investment Analysis 56
5.10 Respondent‟s different parameters for investment Analysis 57

5.11 Respondents decision regarding buying/selling shares Analysis 58

5.12 Respondent‟s difficulties for investment in stock market Analysis 59

5.13 Respondent‟s decision for not investing in stock market Analysis 60

9
 LIST OF GRAPHS

SR No. PARTICULAR PAGE

No.

5.1 Respondent‟s Gender analysis 48

5.2 Respondent‟s Occupation analysis 49
5.3 Respondent‟s Income analysis 50
5.4 Respondent‟s decision regarding investment Analysis 51
5.5 Respondent‟s preference market for investment Analysis 52
5.6 Respondent‟s investment objective Analysis 53
5.7 Respondent‟s expected benefits for investment Analysis 54
5.8 Respondent‟s expected rate for investment Analysis 55
5.9 Respondent‟s reference for investment Analysis 56
5.10 Respondent‟s different parameters for investment Analysis 57

5.11 Respondents decision regarding buying/selling shares Analysis 58

5.12 Respondent‟s difficulties for investment in stock market Analysis 59

5.13 Respondent‟s decision for not investing in stock market Analysis 60

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 Chapter-1

INDUSTRY PROFILE

11
 About Industry

Introduction:
Capital is a crucial factor in the development of an economy. The pace of economy
development is conditioned, among other things, by the rate of capital information. And
capital formation is conditioned by the mobilization and channelization of investment
funds. The role of the financial system is to channel funds from surplus sectors to deficit
sectors. Facilitating and effective demand and thus accelerates economic development.

Savings is important part of the economy of any nation. Now a day various options are
available in investment. The money act is main object of growth of country. Indian
financial scene too presents a plethora of avenue to the investors. Though certainly not
the best or deepest of markets in the world. It has reasonable options for an ordinary man
to invest his savings.

What is investment?
In a theoretical way, investment is a process of sacrificing something today for the
possibility of gaining something in future or Investment is an agreement for a current
outflow of money for some period of as well as the uncertainty regarding to the inflow of
the money in futures.

In economics, investment is the collection of newly produced physical entities such as

factories, machinery, houses and goods investors.

In Finance, the purchase or possession of an assets or item having monetary value

with the hope that it will generate income or appreciate in the future and be sold at the
higher Income is called as making an investment

Classification of Investment:

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Investment divided in to two part, economic investment and financial investment.

1) Financial Investment:

It means funds of people in the form of assets with the objective of earning extra earning
in the value of investment in future. Assets which are depended on the subject matter of
investment will be varying risky and safe once.

2) Economic Investment:

The term “economic investment” is derived from the capital stock of the society. Capital
stock of the society means those goods and services which are used in the production of
goods and services.

3) Factor Determining Investment:

The activities related to investment consist of acquisition of assets, their maintenance

and the liquidation of assets. A good investment should facilitate these investment
activities and factors their growth. There are certain factors which are the growth of
investment. As investment is the result of savings, the government should introduced
adequate measures to encourage saving accumulation. The right of the investor who
have invested their surplus in assets should be protected against any possible
infringement.

4) Well organized monetary system:

It is essential of the growth of the investment market. Investment consist of convey of

surplus funds in specific assets. In fact it should constant price level, which in turn
will contribute to a discipline investment market.

5) Role of financial institutions:

Financial institutions mobilize saving and convey them for productive use in industry.
There are two types of financial institution in the market. Development institution and
Investment institution. Such as, ICICI, IDBI, IFCI, etc. Which have been performing
to all India basis and State level bodies such as state finance and development? These
financial institutions give support for saving and investment.

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6) Macro-Household saving and investment:

As per the RBI data, published from time to time financial saving and physical assets held
by households are available for discussion. During recent years the data shows that the
net investment in financial assets and net physical assets are in the ratio of about 45% and
55%, respectively.

What is a stock broking firm?

Brokerage firms serve a clientele of investors who trade public stocks and other
securities, usually through the firm's agent stockbrokers.

Brokerage firms are the business entities that deal with stock trading. India, with an
increasing capital market and a growing number of investors, has a number of brokerage
firms. In Indian retail brokerage industry, the brokerage firms primarily work as agents
for buying and selling of securities like shares, stocks and other financial instruments and
earn commission for each of the transactions. There are plenty of brokerage firms in
India.

The Indian Capital market is undergoing a wonderful phase when the growth rate is on
the higher side. As of 31 March 2018, a total of 2,33,18,447 investors have their accounts
and have their business going with the Indian Stock Market.

HISTORY OF STOCK BROKING FIRMS

Stock brokerage firms have been an established feature in the financial industry for nearly
one thousand years. Dealing in debt securities, brokers employ a variety of systems to aid
investors with the purchase and sales of stocks and bonds in a variety of markets. The
firms have changed over the years, growing to massive organizations that can affect the
entire financial sector positively or negatively with their performance. Changing with the

14
 times, the early twenty-first century saw a rise of online trading that enabled the average
investor to take part in the stock market for the first time.

STOCK MARKET
History of Indian Stock Market:
Indian stock market marks to be one of the oldest stock market in Asia. It dates back to
the close of 18th century when the East India Company used to transact loan securities. In
the 1830s, trading on corporate stocks and shares in Bank and Cotton presses took place
in Bombay.

The informal group of stockbrokers organized themselves as the The Native Share and
Stockbrokers Association which, in 1875, was formally organized as the Bombay Stock
Exchange (BSE).

Premchand Roychand was a leading stockbroker of that time, and he assisted in setting
out traditions, conventions, and procedures for the trading of stocks at Bombay Stock
Exchange and they are still being followed.

Stock Market
Stock Market is a market where the trading of company stock, both listed securities and
unlisted takes place. It is different from stock exchange because it includes all the
national stock exchanges of the country.

Indian stock market marks to be one of the oldest stock market in Asia. It dates back to
the close of 18th century when the East India Company used to transact loan securities. In
the 1830s, trading on corporate stocks and shares in Bank and Cotton presses took place
in Bombay.

Stock Exchanges:

Stock Exchanges are an organized marketplace, either corporation or mutual organization,

where members of the organization gather to trade company stocks or other securities. The
members may act either as agents for their customers, or as principals for their own accounts.

15
Stock exchanges also facilitates for the issue and redemption of securities and other financial
instruments including the payment of income and dividends.
The record keeping is central but trade is linked to such physical place because modern
markets are computerized. The trade on an exchange is only by members and stock broker do
have a seat on the exchange.

The two major stock exchanges in India are:-

Bombay Stock Exchange (BSE)

Bombay stock exchange on the other hand was set up in the year 1875 as “THE NATIVE
SHARE & STOCK BROKERS ASSOCIATION” and is the oldest stock exchange in Asia.
In 1956, the Government of India recognized the Bombay Stock Exchange as the first stock
exchange in the country under the Securities Contracts (Regulation) Act.
The Exchange‟s pivotal and pre-eminent role in development of the Indian capital market is
widely recognized and index, SENSEX, is tracked worldwide. It has evolved in to its present
status as the premier stock exchange.

National Stock Exchange (NSE)

National stock exchange incorporated in the year 1992. It started trading on 4 November
1994. Within less than a year, NSE turnover exceeded the BSE. NSE embarked on the launch
of equity derivatives trading. NSE scored nearly 100% market share in the runaway success
of equity derivatives trading, thus consigning BSE into clearly second place. Today, NSE has
roughly 66% of equity spot turnover and roughly 100% of equity derivatives turnover.
It provides trading in the equity as well as debt market. Maximum volumes take place on
NSE and hence enjoy leadership position in the country today.

NSE is a well-diversified 50 stock index according for 22 sectors of the economy. It is used
for a variety of purposes such as benchmarking fund portfolios, index based derivatives and
index funds

16
NSE came to be owned and managed by India index service and products ltd. (IISL), which
is a joint venture between NSE and CRISIL, IISL, is India‟s first specialised company
focused upon the index as a core product. IISL have a consulting and licensing agreement
with standard & poor‟s(S&P), who are world leaders in index services. CNX stands for
CRISIL NSE indices. CNX ensures common branding of indices, to reflect the identities of
both the promoters, i.e. NSE and CRISIL. Thus, „C‟ stands for CRISIL,„N‟ stands for NSE
And „X‟ stands for Exchange or index. The S&P prefix belongs to the US based standard &
poor‟s financial information services.

Primary Market & Secondary Market

 In the primary market, Securities are offered to public for subscription by Companies
for the purpose of raising capital or fund.
 Secondary market is an equity trading avenue in which already existing / pre- issued
securities are traded amongst investors.

IPO (Primary Market)

 IPO refers to Initial Public Offer it may be also called Primary Market, where
company issues Equity & raise Capital.
 Now days most Company adapts Book building route for raising capital through IPO,
where online bidding took place through exchange for applying in IPO.
 For applying for shares in an IPO either investor have to fill physical form & submit
or may apply through online option given by some Members to its client who then on
client behalf fill & apply for the IPO.
 IPO allotment / refund is processed within 15 days & the shares are listed & traded in
Secondary Market / Stock Exchange in maximum 21 days of IPO closing.

Secondary Market trading through Stock Exchange

 In India at Present there are Two Major Stock Exchanges exist which contributes
almost total Volumes of Equity Trading in the Country i.e.

Factors Influencing Share Prices

17
  Macro Economic Factors: National & Global Economy status. (GDP growth,
Consumption, Inflation, Country‟s Economic condition etc.)
 Sector Specific Factors: Sector growth, Government Policies for Sector,
International Market of Sector & other relevant trends.
 Company Specific Factors: Company‟s Management Strength & Credibility,
Company‟s Profitability, Previous Track record, Balance-sheet Strength, ROE,
Company‟s Future Prospects, etc.

What is Index (BSE Sensex 30, NSE Nifty 50, Etc.)

 Index is a weighted average of prices of leading companies included in it.
 BSE main Index named as SENSEX consists of 30 Top Companies according to
Exchange criteria. Apart from it there are other Indexes available at BSE are Bse100,
Bse200, BSE-midcap, Bse-smallcap & so on, which shows the collective price
movement of scripts included in that Index.
 Similarly NSE‟s main Index is NIFTY50 which includes top 50 Companies, the other
indexes at NSE are Junior Nifty, Midcap Nifty, Bank Nifty, Cnx-IT etc.

Trading Mechanism at Exchange

 Exchanges are now providing Screen Based Trading Systems, where a client
registered with Member of Exchange may buy or sell shares of listed companies
through online Terminals.
 At present Normal Market timings for Equity & FO is from 9.00 am to 3.30 pm
 One may get enter Buy / Sell Orders at Market rate or put Limit order at desired price
(subject to day circuit limit of the Scrip) for buying or selling the shares of listed
companies.
 The trades executed are done in specific Client code & may be verified with the
Exchange site.

OBJECTIVES:

 The three main objectives of investment are-safety, income and growth of capital.

18
  Investor‟s gets the benefit of the tax reduction.

 Investment leads to marketability or liquidity.

 Investment helps in the goal of wealth maximisation

PESTEL analysis of Indian capital market

POLITICAL:
The capital market of India is very vulnerable. India has been politically instable in the past
but it is a little politically stable now-a-days. The political instability of the country has a very
strong impact on the capital market. The share market of India changes as the political
changes took place. The BSE Index, SENSEX goes up and down with any kind of small and
big political news, like, if there is news that a particular political party has withdrawn its
support from the ruling party, and then the capital market will go down with a bang. The
capital market of India is too weak and is based on speculations. The political stability of the
country is very important for the stability and growth of capital market in India. The political
imbalance or balance of the country is the major factor in deciding the capital market of
India. The political factors include:
 Employment laws
 Tax policy
 Trade restrictions and tariffs
 Political stability

ECONOMICAL:
The economical measures taken by the government of India has a very strong relationship
with the capital market. Whenever the annual budget is announced the capital market goes up
and down with the economic policies of the government .If the policies are supportive to the
companies then the capital market takes it positively and if there is any other policy that is
not supportive and it is not welcomed then the capital market goes down. Like, in the case of
allocation of 3-G spectrum, those companies that got the license for 3-G, they witnessed
sharp growth in their share values so the economic policies play a major part in the growth
and decline of the capital market and again if there is relaxation on any kind of taxes on items

19
of automobile industry then the share of automobile sector goes up and virtually strengthen
the capital market. The economical factors include
 Inflation rate
 Economic growth
 Exchange rates
 Interest rates

SOCIAL:
India is a country of unity in diversity .India is socially rich but the capital market is not very
attached with the social factors .Yes, there is some relation between the social factors with
the capital market. If there is any big social factor then to some extent it affects the capital
market but small social factors don‟t impact at all. Like, there was opposition of reliance
fresh in many cities and many stores were closed. The share prices of the reliance fresh went
down but the impact was on and individual firm there was not much impact on the capital
market on a whole the social factors have not much of impact on the capital market in India.
The social factors include:
 Emphasis on safety
 Career attitudes
 Population growth rate
 Age distribution
 Health consciousness

TECHNOLOGICAL:
The technological factors have not that much effect on the capital market. India is
technological backward country. Same as social factors, technological factor can have an
effect on an individual form but it cannot have a big impact on a whole of capital market. The
Bajaj got a patent on its dts-i technology, and launched it in its new bike but it does not effect
on capital market. The technological change in India is always on a lower basis and it doesn‟t
effect on country as a whole. The technological factors include:
 R&D activity
 Technology incentives
 Rate of technological change
 Automation

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ENVIORNMENTAL FACTORS:
Initially The environmental factors don‟t play a vital role in the capital market. But the time
has changed and people are more eco-friendly. This is really bothering them that if any firm
or industry is environment friendly or not. An increasing number of people, investors,
corporate executives are paying importance to these facts, the capital markets still see the
environment as a liability. They belie that it is of no use for their strategy. The environmental
performance is even under-valued by the markets.

LEGAL FACTORS:
Legal factors play an important role in the development and sustain the capital market. Legal
issues relating to any industry or firm decides the fate of the capital market. If the govt. of
India or the parliament introduces a new law that can affect the running of the industry then
the industry will be de-motivated and this demonization will lead to the demonization of the
investors and will result in the fall of capital market. Like after the Hardhat Mehta scam, new
rules and regulations were introduced like PAN card was made necessary for trading, if any
investor was investing too much money in a small firm, then the investors were questioned,
etc. These regulations were meant to maintain transparency in the capital market, but at that
time, investment was discouraged. Legal factors are necessary for the improvement and
stability of the capital market.

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 INVESTMENT AVENUES

Bullions
&
jewellery

Bank &
post-
office Real Estate
deposits

Investment
Avenue
Mutual
Insurance
Funds
policies

Capital Money
market Market
Instrument Instrument

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 INVESTOR’S PERCEPTION

Perception is a kind of process of attaining awareness or understanding of the

environment by organizing and interpreting information. Investment perception
depends on various aspects like occupation, marital status etc. Fundamental
investment rules and principals are same like, investment climate and investor
behaviour change from time to time and place to place. Investor perception is
individual. They collect available and relevant information for making decision.

23
 INDIAN MARKET

Why do people invest? Generally people invest because of get long term financial
benefit. It‟s to save and invest money for long period of time to have a financial
stability in future. Investment is to make our money work for us. There are many
investment avenue are available in India.

1. Investing a Mutual Fund:

People generally choose to invest in mutual fund. Nowadays trend is money invest
in mutual fund. One of the best investment options is mutual fund for a systematic
investment plan. This investment plan is give a better return compared to any
another investment option in the market. Many company introduce mutual fund
like L&T Infrastructure Fund introduce in September 27, 2007 and Aditya Birla
Sun Life Frontline Equity Fund introduce in August 30, 2002.

2. Capital market instrument:

Generally people know how to analyse share stock before going to buy direct
equity or share. In this case no limit of maximum amount or minimum amount. In
this case not applicable minimum investment period.

One of the best investment options is Invest in Bonds. They actually provided a
high rate of return on investments. There bonds that are under the regulation of
government. There are various short term and long term investments option are
provide. High investment leads to high risk and more return.

24
3. Real Estate Investment:

Real estate is one of the fast growing sectors in India. In major areas like
housing, commercial, hospitality, manufacturing, retail and more. Best decision
in investment purchasing flat or plot. In this area risk is low because rate of
property increases within 6 month.

4. Investing in gold in various ways:

Gold is one of the oldest and most popular investment products, as the
value of gold increases move fast. Gold investment benefit given in the short
period of time. Any gold investment format such as Gold Deposit Scheme,
Gold ETF, Gold mutual fund etc.

25
 Indian Gold ETF Investment options, with their return rates:

Mutual Fund 1 Month 3 Month 6 Month 1 Year 2 Year 3 year 5 year

Scheme

SBI - ETF Gold -1.5 13.2 8.1 10.7 1.6 2.5 5.7

G
o
l
Quantum d -1.6 13.1 8 10.5 1.5 2.4 5.6

Fund

G
o
l
HDFC d -1.5 13.2 8.1 10.3 1.4 2.3 5.5

Exchange

Traded Fund

26
 5. Post Office Saving Schemes:

This is best option in investment. That ensures the highest return. Post Office
Scheme is monthly income plan. So this is very suitable for retired people with
regular income requirement. In this area does not have related any risk factor
but interest is low. This is government saving scheme. Many requirements and
benefits are included,

 Maximum investment limit in single account Rs. 4.5 Lakh.

 Maximum investment limit in joint account Rs. 9 lakh.

 Minimum eligibility age 10 and above.

 Single account can be converted in joint account and vice-a-versa.

6. Insurance Plans:

It is best investment option in India. It invests in debt and equities market. In this
area fluctuation is counted by the Net Asset Value. It is also known as ULIP. It is
play important role in investment market.

7. Company Fixed Deposits:

Company FD gives higher rate interest. Generally people selected investment

period very carefully. This schemes are not under any insurance benefits and
neither it is under control of the Reserve Bank of India. It is long term
investment.

8. Money market instrument:

27
 The money market is important for businesses because it allows companies with
temporary cash to invest in short term securities. The money market is the arena
in which financial institution make available to a broad range of borrowers and
investors the opportunity to buy and sell various forms of short term securities.

 Treasury bills

 Federal agency notes

 Certificates of deposit

 Eurodollar deposits

 Commercial papers

28
 THE GROWTH OF THE INDUSTRY

1. Real Estate:

The real estate sector is one of the most developing sectors. In India real estate is second
largest employment generated industry after agriculture. It is estimated that it will grow up to
30% in next decades. The growth of this sector is depending upon environment and demand
of the country.

2. Mutual Fund:

The mutual fund increases of around 2.2 million new investors during 2014-15. The total
number of investors are 4.17 crore at the end of the month in March 2015 as compared to
2014, in 2014 it was 3.95 crore. ICICI prudential is registered as the fastest growing industry
of 25% with the total investor. Similarly Birla sun life is growing with growth of 20% to 24.26
lakhs from 20.19 lakh investors. HDFC mutual fund is one of the country‟s largest fund
houses.

3. Gold:

“India is having a largest gold consumer in the world.”

Gold is traditional investment avenue and one of the safe investment options. In 2015 the
gold price was Rs. 26,343.50, in 2016 it increases by Rs. 28,623.50 and in 2017 it increases
by Rs. 29,667.50.

29
 4. Post Office & Bank:

“Over the last several years, post office deposits have been attracting investors, by
reducing its interest rate”. According to RBI data, from last five years post office deposit
grow by 24% annually between 2011-12 and 2014-15.Bank deposit has been 14% in
similar time duration.

5. Insurance:

Insurance industry plays a vital role in the Indian market. There are altogether 53
insurance companies that are serving both life insurance and general insurance products to
the customers countrywide. The life insurance sector recorded a new premium income of
Rs. 1.38 trillion in a year, i.e. April 2015 to March 2016. This indicated a dramatic growth
rate of 22.05% in the premium income.

A life insurance sector offers about 360 million policies. Currently the general
insurance business in the market account for more than Rs. 70,000 Crore premium
yearly and it is growing at a positive rate of 17% every year.

30
 Chapter – 2

Company Profile

Tradebulls Securities
Private Limited.

31
History
Tradebulls Securities Pvt. Ltd. was established in 2009 by Mr.Dinesh Thakkar, Tradebulls
Securities Private Limited is a reputed financial firm offering world class brokerage services
and wealth management to retail clients. These include Equity, Currency and Commodity
Trading. They also provide distribution of Mutual Funds, IPOs, Personal Loans and
Insurance, as well as Portfolio Management, Online Trading and Depository services. Their
research and advisory arm releases high-quality fundamental and technical research reports at
regular intervals. Tradebulls is a company with 1000+ employees. Tradebulls is also among
the top five brokers in Gujarat on NCDEX and BSE in terms of turnover.
Currently Tradebulls is based in 9 cities i.e. Ahmedabad, Bengaluru, Delhi, Gandhinagar,
Hyderabad, Mumbai, Rajkot, Surat and Vadodara with 18 branches.

Memberships

Tradebulls Securities (P) Limited offers Equity, Derivative and Currency trading through
National Stock Exchange (NSE), Bombay Stock Exchange (BSE), MCX Stock Exchange
(MCX-SX) and United Stock Exchange (USE). We are also registered as a Depository
Participant with Central Depository Services (India) Limited (CDSL). We also provide
commodity trading on Multi Commodity Exchange (MCX) and National Commodity &
Derivative Exchange (NCDEX) through our Group Company Tradebulls Commodities
Broking (P) Limited formerly known as Siddhivinayak Broking (P) Limited.

Group Companies
1. Tradebulls Securities (P) Limited
2. Tradebulls Commodities Broking (P) Limited
3. Tradebulls Commodities (P) Limited

32
Products
 Equity Trading
 Commodity Derivatives
 Currency F & O Trading
 F & O Trading

Services
 Trading & Demat Account
 Research Advisory
 IPO
 Mutual Fund
 Loan against securities
 Intraday Trading

Philosophy
The Company‟s philosophy is entirely client centric, with a clear focus on providing long
term value addition to clients, while maintaining the highest standards of excellence, ethics
and professionalism. We believe our success is related to belief in our guiding principles.

 Customer-Centric: Our products and services are designed and delivered while
focussing on meeting the needs of our clients in the best possible way.
 Service Quality: We are particular about following superior quality service standards
to ensure convenience, comfort and ease while delivering an enjoyable customer
service experience.
 Team Work: We are a cavalcade of passionate youngsters who believe in attaining
goals collectively and collaboratively.
 Excellence in Execution: We deliver time-bound results within the framework of the
company‟s value system.
 Innovation: Our ability to develop unique solutions to meet our client‟s needs is
paramount in our day-to-day decision-making.

33
  Meritocracy: We believe that performance gets differentiated, recognised and
rewarded in a competitive environment.
 Integrity: A company honouring commitment with highest ethical and business
practices.

Vision
"To provide world-class Wealth Management Services by arranging all conceivable financial
services under one roof at affordable costs through cost-effective delivery systems, and to
achieve organic growth in business by adding newer lines of business, with the help of a self-
motivated and aggressive team of young professionals."

Mission
 Delivering powerful, easy-to-use trading technology.
 Supporting active traders over a wide range of products.
 Teaching the world a smarter way to seek risk management and spot potential
opportunities.

Awards & Recognition

 Commendation for contribution to the BSFI Sector 2018 from CNBC Bajar
Gujarat Economic Conclave & Awards.
 Excellence in Financial Services Awards 2018 from Indian Achievers‟ Forum.
 SME Excellence Awards 2018 (Cost Competitiveness) from ASSOCHAM India
 Brand Excellence in BSFI Sector 2017 from World Brand Congress
 Marketing Campaign of the year 2017 (Tradebulls Touch Campaign) from World
Brand Congress
 Best use of Mobile Technology in financial Services 2016 from ABP News BFSI
 Best HR strategy in line with business Award at 7th Best Employer Brand Awards
2016
 Top Performer – Equity And Derivatives awarded by NSE for 2015-2016
 Top Performer – NBF awarded by NSE for 2015-2016
 Best Advertising Campaign from Indian Brand Convention BAM-2016
 Best Digital Marketing Campaign from Indian Brand Convention BAM-2016

34
 ASSOCHAM Top SME 50 ASSOCHAM India‟s Top SME 50 Index Outstanding
Performance
 Special Commendation for HR Excellence Award Golden Peacock Award 2016

35
 Chapter-3
PRIMARY STUDY

36
 3.1 INTRODUCTION TO THE STUDY

Capital market development because of their have been closely related to an

economic development. At low levels of development, commercial banks tend to
dominate the financial system. There are many financial assets and investment
avenue are available in India. Each investment option has its own strengths and
weakness. Some option achieve good return but with high risk. Other options like,
FDs offer safety and liquidity, but at the cost of return.

Savings is an important part of the economics of any nation. With the savings
invested in various options are available to the people, the money acts as the
driver for growth of the country. Main aim of invest and earn return on their
resource and generate specific goal in life. One of the important reasons is
inflation. Inflation is the rate at which the cost of living increases. The cost of
living simply what is coat to buy the goods and services you need to live. By
investing early you allow your investment more time to grow, whereby the
concept of compounding increases your income.

Investing is not a game, but serious subject that can have a major impact on
investor‟s future well beaning. Investor has a lot of Investment Avenue to park
their savings. The investor has to choose Proper Avenue depending upon his
specific need, risk preference, and returns expected. Investment is always
interesting, challenges and rewarding. A good investment strategy will diversify
the according to the specific need.

37
 3.2 LITERATURE REVIEW

Behavioural finance is a new emerging science that studies the irrational

behaviour of the people. Vanish Kumar Singh (2006) the study entitle “Investment
perception of people” has been undertaken with the objective; to analyse the
investment perception of people in analysis of the study was undertaken with the help
of survey conducted. After analysis and interpretation of data it is concluded most of
investors are more aware about various investment avenues. All the age groups give
more important to invest. Major investors are aware about the risk associated with
that.

Sudalaimuthu and Senthil Kumar (2008) Mutual fund is the one of investment
avenue the researcher research in this area about investors perception towards mutual
fund investment has been analysed effectively taking into account the investors
reference towards the mutual fund sector, scheme type, purchase of mutual fund units,
level of risk undertaken by investors, sources of information about the market value
of the units, investors opinion on factors influenced to invest in mutual funds, the
investor satisfaction level towards various motivating factor, problem faced by mutual
fund investors. The study has made an attempt to understand the financial behaviour
of mutual fund investors in connection with the scheme preference and selection.

Sunil Gupta (2009) the investment pattern among different groups in city had a clear
as well as a complex picture. The complex picture means that the people are not
aware about the different investment avenues and they did not respond positively,
probably it was difficult for them to understand the different avenues. The attitude of
the investors towards the securities in general was bleak, through service and
professional class is going in for investment in shares debentures and in different
mutual fund schemes. Major cities though being rich have a tendency of investing
then surpluses in fix deposits of banks, provident funds, post office savings, real
estate‟s etc. For want of safety and suitability of returns.

38
Manish Mittal and Vyas (2009) Investors have certain cognitive and emotional
weakness which comes in the way of their investment decisions. Over the past few
years, behavioural finance researchers have scientifically shown that investors do not
always act rationally.

Nayak, M. K. (2010), analyse the significance of difference between the various

demographic variable and investors knowledge of grievances, awareness of function
of readdressed agencies, loading of complain are some of the factors which affect their
satisfaction level. Agriculture is generally less informed and passive to making
investment so that they suffer from all the traits of being prone to grievances.

Brahma Bhatt, P. S. Raghukumari, Dr. Shamira Malekar in their study “ An

investor behaviour in investment avenue in Mumbai Fein (September 2012),
examined that people like to invest in stock market even if they face huge losses.
They give more preference to savings and safety but at the same time they want
higher interest at low risk in shorter span. He also examined that most of the
percentage of the income that they invest depend on their annual income.

Rd. Appara and Professor N. Kishore Babu explain through their study “an
investment perception towards investment avenue in Godavari district of Andhra
Pradesh (January 2015), that majority of respondents obtained their information
regarding investment through their friends and relatives as a first priority and then
national newspapers. They also noted that majority of respondents having savings for
the purpose of safety for future, capital appreciation, regular returns, speculative gains
and tax benefits. They proved that most of respondents agreed bank deposits are the
safety investment avenue.

39
 3.3 BACKGROUND OF THE STUDY

The study has been conducted with the objective of investor‟s perception towards
investment in stock market. The sample of 250 represents the investor of Ahmedabad
city. Financial planning through high amount of saving can be possible and saving
leads to investment.

This project is based on which type of avenue used of investor. Many people don‟t
have invested about Investment Avenue. So one purpose is that what are reasons
behind their lack of knowledge towards investment in stock market. Many people
know about Investment Avenue but they really don‟t do it because they are not aware
of the benefits which they can get through investment and it also helps to increase our
savings and help to generate income out of savings.

To identify above details, I look a response of 250 people who are living in
Ahmedabad city and invest in Investment Avenue.

40
 3.4 PROBLEM STATEMENT

This project knows the preference and analyse the significance of factors that
influence the investors decision towards making investments. This study follows to
find out factors of population like age, gender, occupation, income etc. several
elements of investment. The hypotheses have been developed to research objective.
Investment perception it has been taken a dependent variable. Demographic factors
like age and gender are considered as independent variable. Data were classified,
tabulated and tested statistical inference were drawn by the use of hypothesis and Chi-
square technique.

41
 3.5 OBJECTIVE OF THE STUDY

The main objective of the analysis is to determine the investment behaviour of

investors and investment preference for the same. The main purpose of the project is
to find out need of the current and future investors. For this analysis, investor‟s
perception level will be measured in the important area such as:

 To understand in difference investment avenue available in India.

 To find out how investors get information about the financial instrument.

 Which would prefer to invest?

 To know the awareness about the different avenue among the investors.

 To identify the risk bearing capacity, management between expense and saving

 And other factor influences their investment decision.

 To give an advice to the investors that where they should invest.

42
 Chapter-4
RESEARCH METHODOLOGY

43
 4.1 RESEARCH DESIGN

There are total three types of research design descriptive, exploratory, and causal.

Here descriptive research design will used to gain better understanding of respondent. The
methodological approach to this study is descriptive, because we attempt to identify and
explain variable that exist in a given situation and to describe the relationship that exists
between the different variable which affect customer attitude toward online and offline
trading in the stock market

So, here descriptive research method has been used.

44
 4.2 DATA COLLECTION METHOD

Information collected both primary and secondary data.

1. Primary Data:

Primary data are those which are collected for the first time and happen to be original
in character. Primary data was collected through direct personal interviews (open
ended and close ended questionnaire).

2. Secondary Data:

Secondary data are those which are have already been collected by someone else.
This type of data happen to be passed through the statistical process. Secondary data
was collected,

• Investment Magazines, Business Magazines.

• Experts‟ opinion published in various print media.

• Web sites.

• Books.

Here primary study has been conducted to get information. Primary data collected through
questionnaire. 250 responses have been collected for this study.

45
 4.3 SAMPLING METHOD:

The responses have been collected as per convenience sampling method, which is
classification of non-random sampling method.

Purpose behind the selecting this method is we can‟t force any person for response and
if we force respondent then there are chances of wrong response given by them. So
convenience responses collected is as per the convenience of respondent.

46
 Chapter-5
DATA ANALYSIS AND
INTERPRETATION

47
5.1Respondent’s Gender Analysis:

Male 152

Female 98

Total 250

Interpretation:

The above table and chart shows gender wise distribution. Out of 250 samples 61% are males
and 39% are females. Hence we can say that the proportion of male is more as compared to
proportion of females.

48
5.2 Respondent’s Occupation Analysis:

Business 74
Government Employee 13
Private Employee 90
Professional 29
Student 48

Interpretation:

From the above chart, we can say that in the survey most of the respondents are private
sector employees. Business Man is 29.1% and respondents from student section are
18.9%. Least investment done in stock market by the government employees and
Professionals by 5.1% and 10.6% respectively.

49
5.3 Respondent’s Income Analysis:

Less than Rs.2,50,000 58

Rs.2,50,000-Rs5,00,000 78
Rs.5,00,000-Rs.10,00,000 80
More than Rs.10,00,000 38

Interpretation:

From the above table and chart, we can interpret that 31.5% of respondents have their
annual income less than Rs.5, 00,000-Rs.10, 00,000. 30.7% respondents have their
annual income in between 2, 50,000-Rs.5, 00,000. 22.8% respondents have their
income less than Rs.2, 50,000. Only 15% respondents have their annual income more
than Rs.10, 00,000.

50
5.4 Respondent’s decision regarding investment:

Does invest (Yes) 151

Does not invest (No) 99
Total 250

Interpretation:

From the above chart and table, it can be seen that out of the 250 respondents 60.2%
respondents does investment in stock market and 39.8% do not invest in stock market.
This shows that out of every 100 people, nearly 60 does investment in stock market.

51
5.5 Respondent’s preference market for investment:

Primary market 21
Secondary Market 60
Both 72

Interpretation:

The above table and chart shows that out of 250 respondents maximum respondents
does investment in primary and secondary market by 47.1%. 39.2% respondents opt
secondary market for investment and 13.7% respondents opt primary market for
investment in stock market.

52
5.6 Respondent’s investment objective:

Long Term 67
Short Term 10
Dividend 5
Long Term & Short term 71

Interpretation:

From the above chart and table, it can be analysed that people who does investment in
stock market does investment with the objective to gain long term as well as short term
benefits. 46.4% respondents have the objective to gain long term and short term
benefits. 43.8% respondents have the objective to gain long term benefits while rest of
the respondents have least interest in gaining short term benefits or dividend.

53
5.7 Respondent’s expected benefits for investment:

Wealth Creation 134

Tax Benefits 27
Future Expectations 75
Other 3

Interpretation:

From the above table and chart, it is clearly shown that people who do investment in stock
market have the main objective of wealth creation. After that, future expectations from the
investment done are made. While respondents with tax saving benefits and other benefits
with 17.6% and 2% respectively comes at the bottom.

54
5.8 Respondent’s expected rate for investment:

Steady Rate 85
Average Rate 40
Rapidly Growing Rate 28

Interpretation:

The above table and chart shows that 55.6% respondents expect a steady rate for their
investment done. While 26.1% respondents expects their investment to grow at average rate
and 18.3% respondents expects to grow their investment at rapidly growing rate.

55
5.9 Respondent’s reference for investement:

Internet 51
Friends and Family Members 84
Newspapers 17
Financial Advisers 111
Others 4

Interpretation:

From the above table and chart, it is clearly seen that 111 respondents get their reference for
investment from financial advisors by 72.5%. After that, respondents get their reference from
friends and family with 54.9%. While internet and other sources for reference counts to
33.3% and 2.8% respectively.

56
5.10 Respondent’s different parameters for investement:

Highly Moderately Neutral Moderately Highly

Satisfied Satisfied Dis-satisfied Dis-satisfied
Savings A/c & 39 55 55 3 1
Bank FD
Stock market 99 40 12 2 0
Mutual Funds 65 51 32 3 2
Bonds 21 33 75 18 6
Properties 36 41 60 13 3

Interpretation:

From the above table and chart, it can be analysed that as compared to other sources of
investment, investors are satisfied with their investment in stock market and savings A/c and
Bank FD. It can be clearly seen that investors are dissatisfied with their investment in bonds
as compared to other sources of investment.

57
5.11 Respondent’s decision regarding buying/selling shares:

Difficulty in buying shares 43

Difficulty in Not buying shares 58

Total 101

Interpretation:

From the above table and chart it can be analysed that out of 250 respondents, nearly 100
respondents does not do investment in stock market. Out of that 57.4% respondents does not
find difficulty in in buying or selling shares while 42.6% respondents finds difficulty in
buying or selling shares and so they do not invest in stock market.

58
5.12 Respondent’s difficulties for investment in stock market:

Agree Partially Neutral Partially Disagree

Agree Disagree
Delay in transfer of 15 20 54 11 1
shares
High amount of 28 29 37 5 2
brokerage
Delay in payment 17 24 46 14 0
Volatility of stock market 29 27 39 5 1

Interpretation:

From the table and chart, it can be analysed that the main reason of respondents for not
investing in stock market is volatility of stock market and delay in receiving payment of the
investment made

59
5.13 Respondent’s decision for not investing in stock market:

Insufficient Knowledge 47
Fear of fraud 24
Type of gambling 18
Not interested 71
Invest in other options 36

Interpretation:

From the above table and chart it is clearly seen that nearly 70% respondents are not
interested in investment in stock market. While 46.5% does not invest due to insufficient
knowledge of trading in stock market.

60
Chapter-6

FINDINGS

61
 From the survey conducted I found that there are more male investors as
compared to female investors.

 From the survey conducted we found that most of the investors are experienced
and they have knowledge about stock market and investors are investing more in
equity and mutual fund segment.

 36% investors are doing trading through Tradebulls Securities Stock broking
firm because they are providing good services.

 Most of the investors are below 35 years which means that young population is
ready to take risk and invest in stock market.

 Investors are provided with good facilities and features which motivates them
to invest in stock market.

 Most of investors are facing problem of volatility of market and high amount of
brokerage by the financial advisors..

 Approximately 57% are not finding difficulty in buying or selling shares but
their reason for not investing is they opt for other investment options.

 Investors are preferring to invest in stock market because it will contribute to

their wealth creation objective.

 Investors expect to grow their money invest at a steady rate as it will meet their
future expectations.

 Investors are investing their money guided by their financial advisors as they
consider that financial advisors are the reliable source of information.

62
 Chapter-7
RECOMMENDATIONS

63
 Awareness should be created among the young population regarding trading in stock
market.

 Stock market should be made more reliable source of investment because people think
that it is kind of gambling only.

 Strong and proper steps should be taken to spread knowledge about investment in
stock market.

 People should be made aware about benefits and advantages of investment in stock
market.

 Proper knowledge about investment in stock market will lead people to take risk and
invest their earnings in stock market.

 Adequate knowledge about stock market will remove the myth of frauds and cheating
of investment in stock market.

 People prefer Ease of transactions and security. So, brokerage firms should
focus on security and making transactions as simple as possible with simple
usage of technology.

 The company should enhance their services according to the needs of clients.

64
 Chapter-8
CONCLUSION

65
Investment planning is choice of individual. Investment helps to boost an individual‟s
growth and economic growth too. If an individual does investment planning then they can
invest their earnings as per choice of source of investment.

In my survey, mostly male investors are there and they are ready to invest in stock
market. Also young population is ready to take risks and invest their money in stock
market. Mostly investors are investing for long term with an intension to get maximum
benefits which will meet their future expectations. In stock market, prices change as per
the demand and supply. If investment is done in right company then it will help in
achieving the objective of wealth creation for investors. I have also found that people
who are investing in stock market are satisfied with their decision of investment as stock
market being a volatile source of investment it gives good return of investment done.
Hence as per my survey investors are satisfied with their investment done in stock
market.
 LIMITATION OF THE STUDY

This analysis is based upon investor‟s perception toward various investments in stock
market. This analysis would be focusing on the information from the investor about
their perception, knowledge and behaviour on different financial product.

The various limitation of the study is:

Ø Only 250 responses have been considered for this study.

Ø The total number of financial instrument in the market is so large that

it needs a lot of resources to analyse them all.

Ø A few respondents might have furnished the required information

from their momentary memory and invented temper and hence the
collected data might be suggested to bias.

Ø As analysis is based on primary data and secondary data.

Ø The size of the sample compared to the population is small and hence
it night not signify the ideas of entire population.
 BIBLIOGRAPHY
Vanish Kumar Singh (2006) : People‟s perception, behaviour and attitude towards
investment

Sudalaimuthu and Senthil Kumar (2008) : Financial behaviour of mutual fund investors in
connection with other schemes

Sunil Gupta (2009) : Attitude of investors towards investment in securities in connection

with different group of people

Manish Mittal and Vyas (2009) : Investor‟s weaknesses which come in way while investing
earnings

Nayak M. K. (2010) : The significance of difference between the various demographic

variable and investors knowledge of grievances

Brahma Bhatt, P. S. Raghukumari and Dr. Shamira Malekar (2012) : An investor

behaviour in investment avenue

Rd. Appara and Professor N. Kishore Babu (2015) : Investment perception towards
different investment avenues in Godavari district of Andhra Pradesh
 REFRENCES

www.anglebroking.com

www.bscindia.com

www.ibef.org

www.nseindia.com

www.sebi.gov.in

www.tradebulls.in

www.trademartonline.in

www.upstox.com
 ANNEXURE
Personal details

1. Name:

2. Gender
o Male
o Female

3. Age
o Below 25 years
o 25-35 years
o 35-45 years
o 45-55 years
o Above 55 years

4. Occupation
o Business
o Government Employee
o Private Employee
o Professional
o Student

5. Annual Income
o Less than Rs.2,50,000
o Rs.2,50,000-Rs.5,00,000
o Rs.5,00,000-Rs.10,00,000
o More than Rs.10,00,000

6. Do you invest in stock market?

 o Yes
o No

Investor Awareness

7. Through which market do you invest?

o Primary market
o Secondary Market
o Both

8. What is your investment objective?

o Long Term
o Short Term
o Dividend
o Long term & Short Term

9. What are the benefits come in your mind while investing?

o Wealth Creation
o Tax benefit
o Future Expectation
o Other

10. At which rate would you like to invest?

o Steady rate
o Average rate
o Rapidly growing rate

11. From where did you find reference for investment?

 o Internet
o Friends & Family
o Newspapers
o Financial Advisor
o Other

11. Rate the following parameters for investment as per your preference

Highly Moderately Neutral Moderately Highly

Satisfied Satisfied Dis-satisfied Dis-
satisfied

Savings A/C,
Bank FD
Stock
Market
Mutual
Funds
Bonds

Properties

Investor Grievances

12. Do you find difficulty in buying/selling shares?

 o Yes
o No

13. Rate the difficulties as per your preference:

Highly Moderately Neutral Moderately Highly

Satisfied Satisfied Dis-satisfied Dis-
satisfied

Delay in transfer
of shares
High amount of
brokerage
Delay in Payment

Volatility of
stock market

14. Why don‟t you invest in stock market?

o Insufficient Knowledge
o Fear of fraud
o Type of gambling
o Not interested
o Invest in other options

15. Suggest measures to improve investor awareness

_______________________________________________________