Annexure

Annexure

Questionnaire

Dear Sir / Madam,

Thanking you for agreeing to participate in this survey.

I am doctorate scholar of Ganpat University, Kherva and conducting this survey as a

part of my doctoral study. The survey is conducted for academic purpose only. This
study is meant to understand the factors affecting the individual investor’s sentiment
towards Equity Market. Information provided by you will be used only for academic
purpose and kept strictly confidential.
Thank you,

Rajesh Kiri

(visit_rajeshkiri@rediffmail.com)

Personal Information:

1. Name:
2. Age (in years):
18 to 25
26 to 35
36 to 45
46 to 55
56 to 65
66 and above

3. Gender: Male Female

4. Highest Educational Qualification:

Up to Primary
Up to Secondary
Higher Secondary
Graduate
Post Graduate
Other, Please Specify __________

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5. Annual Family Income:

Less than Rs.2,00,000 Rs.2,00,001 to Rs.4,00,000

Rs.4,00,001 to Rs.6,00,000 Rs.6,00,001 to Rs.8,00,000
Rs.8,00,001 to 10,00,000 Rs.10,00,001 and more
6. Occupation:

Service
Business
Profession
Retired
Other, Please specify___________

7. Marital status:

Single
Married

8. Name of City: 9. State:

10. Since how long have you been investing in the stock market? ________

11. Kindly provide your view towards stock market:

Please indicate the extent to which you agree with each of the following statements by
rating them on a 1 (Strongly Disagree) to 7 (Strongly Agree) Scale.
1 2 3 4 5 6 7
A1 In India, share price will rise for the next 12
months

A2 If the Indian stock market Index dropped on

tomorrow, I would guess that it would
recover most of losses in few days

A3 Presently I will stay invested in the Indian

stock market

A4 I plan to increase my investment in the Indian

stock market in the next 12 months

A5 In Indian stock market, most of the shares are

overvalued relative to their fundamental
value

A6 A major stock market correction like that of

the 2008 could happen in India in next 12
months

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12. Please indicate the extent to which you think each of the following variables is
influencing your attitude towards investing in stock market by rating them on 1
(Not at all Important) to 7 (Extremely Important) scale.
1 2 3 4 5 6 7
An individual investor’s attitude towards
investing is influenced by :
A7 Rate of Inflation
A8 Rate of Interest
A9 GDP, GNP
A10 Availability of Corporate Research
A11 Government Policies toward Business
A12 Can’t depend on (PF/Gratuity/Post office
saving) to fund the retirement
A13 Price of Gold
A14 Unemployment Rate
A15 Price of crude oil
A16 Stories of successful investors
A17 Get quick rich philosophy
A18 Strength of Indian rupee vs. other major
currencies
A19 Information available on internet
A20 Mass marketing by mutual funds
A21 Perception of ‘easy money’ among investors
A22 Everyone else is investing
A23 Strength of Indian economy vs. other
economies
A24 Information age and access to information
A25 Access to tools and technology via Internet
A26 Low cost of executing trade
A27 Target Saving rate
A28 Lower rate of return in Government bond
A29 Performance of Indian stock market vs. other
stock markets
A30 Confidence level of institutional investor
(FII, FDI)
A31 Greed among investors
A32 Strength of financial sector
A33 Media focus on stock market
A34 Corporate earnings
A35 Online trading
A36 Cost cutting by corporation
A37 Mass marketing by discount brokerage
houses
A38 Ease of executing trade
A39 Investor’s risk tolerance level
A40 Merger and Acquisitions in the corporate
sector
A41 Political stability

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A42 Statement from politician and government

official
A43 Statement from company official
A44 Technological advancement at company
level

13. Investment Decision: Please rate the following variables in terms of how
important they have been in your stock selection process from 1 (Not at all
Important) to 7 (Extremely Important).

My investment decisions are influenced 1 2 3 4 5 6 7

by
A45 Price to Earnings Ratio
A46 Book value
A47 Familiarity with the products and services
A48 Recommended by the analysts and research
reports
A49 Recommended by the brokers
A50 Recommended by the street experts and
stock market gurus
A51 Recommended by friends, family and peers
A52 Dividends Yield Ratio
A53 Expected stock split
A54 Earning per Share
A55 Insider buying
A56 Major institutions and corporation is
currently buying the stocks of the company
A57 Current assets to current liability ratio
A58 Turnover ratio ( Receivables, Inventory and
Account payables)
A59 Business partners, customers, suppliers and
competitors of the company
A60 Social responsibility of the company
A61 Geographical location of the company
A62 Debt to Equity Ratio
A63 Price cut off rules (e.g. Avoid share price
above Rs.100)
A64 Industry sector
A65 Firm status in Industry
A66 Competition level in the Industry
A67 Interest Coverage Ratio
A68 Gut feeling and intuition
A69 Size of company
A70 CEO Track record and expertise
A71 Quality of assets, Return on assets
A72 Media coverage of stock
A73 Potential takeover target
A74 Past price performance including any recent
price over reaction

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A75 Return on Investment

A76 Rumors
A77 Hot sector, hot stock
A78 Brand name
A79 Institutional ownership
A80 Quality of management
A81 Return on equity
A82 Perceived ethics of firms
A83 Cash flow per share
A84 Promoters’ holding in the company
A85 Percentage of promoters’ shares pledged

14. Investment decision: Kindly provide your opinion for the following
statements by rating them on a 1 (Strongly Disagree) to 7 (Strongly Agree) scale.

1 2 3 4 5 6 7
A86 I am confident in my ability to do better than
others in picking the stocks
A87 I hate to sell my stocks at a loss
A88 I hold fairly diversified portfolio
A89 I never trade on an impulse
A90 When the stock price falls below my purchase
price, I usually wait for the price to come back
to my purchase price before I sell
A91 Emotions do not color my investment decision
A92 I am confident in my ability to pick stocks that
will beat the market averages
A93 I rush to sell my winners
A94 I consider all available information before I
make a trade
A95 I find it difficult to sell my stocks
A96 I know I should hold on to my winners, but I
don’t
A97 I am a risk taker
A98 I am an aggressive trader
A99 I get emotionally attached to my stock
A100 I always think carefully before I trade

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Frequency of trade

15. In last 12 months how many times did you buy or sell stocks not including mutual
funds?(Count buy and sell as two different trade)

Answer:

Of the trades made in the last 12 months how many trades result into profit?

Answer:

16. Suppose you have bought a stock one month ago for Rs.50 a share. Today the
price of the share is Rs.40 a share then would you prefer to book loss of Rs.10 by
selling the stock or hold it for one month? Suppose there are only two equal likely
chances (Assuming that there is no transaction cost and taxes).

A. 50% chances that it will decrease by Rs.10 more and reach to price of Rs.30

B. 50% chances that it will increase by Rs.10 more and reach to price of Rs.50

What will you do?

Option A: Sell the stock and book loss of Rs.10

Option B: Hold the stock for one month

17. Suppose you have bought stock one month ago for Rs.50 a share. Today the price
of the share is Rs.60 a share then would you prefer to sell the stock or hold it for one
month? Suppose there are only two equal likely chances. (Assuming that there is no
transaction cost and taxes)

A. 50% chances that it will decrease by Rs.10 and reach to price of Rs.50

B. 50% chances that it will increase by Rs.10 more and reach to price of Rs.70

What will you do?

Option A: Sell the stock and book profit of Rs.10

Option B: Hold the stock for one month

18. Suppose you own stock of ABC Company. According to you the company is
having very good long term predictions. The stock price falls because of poor last
quarter results. Would you like to buy more shares of ABC Company?

Yes No

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19. You do not own stock of ABC Company. According to you the company is
having very good long term predictions. The stock price falls because of poor last
quarter results. Would you like to buy more shares of ABC Company?

Yes No

20. Suppose you have paid Rs.150 to see a film. Arriving at cinema hall you came to
know that you have lost the ticket. Will you pay another Rs.150 to see the film?

Yes No

21. Suppose you are on the way to see the film but you did not own the ticket before.
On reaching the cinema hall you came to know that you have lost Rs.150. Will you
buy the ticket to see the film?

Yes No

Thank you

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