Professional Documents
Culture Documents
On
Submitted to
Institute Code: 716
Institute Name: GIDC Rajju Shroff Rofel Institute of Management
Studies
Prepared by
Ritesh Patel (197160592041)
Madhuri Sharma (197160592061)
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STUDENT’S DECLARATION
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PLAGIARISM REPORT
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CERTIFICATE OF EXAMINER
This is to certify that project work embodied in this report entitle “A Study on
Problems and Factors influencing Investors Perception and Decision towards
Stock Market in the region of Vapi” was carried out by Ritesh Patel
(197160592041) of GIDC RAJJU SHROFF ROFEL INSTITUTE OF
MANAGEMENT STUDIES, VAPI.
The report is approved / not approved.
Comments of External Examiner:
This report is for the partial fulfillment of the award of the degree of Master of
Business Administration offered by Gujarat Technological University.
----------------------------
(Examiner’s sign)
Name of Examiner:
Institute Name:
Institute Code:
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CERTIFICATE OF EXAMINER
This is to certify that project work embodied in this report entitle “A Study on
Problems and Factors influencing Investors Perception and Decision towards
Stock Market in the region of Vapi” was carried out by Madhuri Sharma
(Enrollment No. 197160592061) of GIDC RAJJU SHROFF ROFEL INSTITUTE
OF MANAGEMENT STUDIES, VAPI.
This report is for the partial fulfillment of the award of the degree of Master of
Business Administration offered by Gujarat Technological University.
----------------------------
(Examiner’s sign)
Name of Examiner:
Institute Name:
Institute Code:
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PREFACE
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ACKNOWLEDGEMENT
We have taken this opportunity to thanks all those who have helped us by guiding into
real aspects of theories with the efforts made by them which helped us during the time
of this project. Without them the successful completion of this project would not have
been possible.
I am very much fortunate to get opportunity to work on the project as a part of our
study.
Our parent has given us encouragement, moral and financial support during our
studies. They have constantly urged me to pursue excellence in whatever we do.
Enormous thanks to our director of GRIMS and my internal guide, Prof. Dr. Kedar
Shukla. His unlimited boosting and encouragement helped to keep our spirit
throughout the project. He helped us throughout our project work and documentation.
INDEX
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SR No. TOPIC PG No.
1 Introduction of Topic 8
2 Literature Review 13
3 Research Methodology 28
5 Hypothesis 49
6 Findings 67
7 Conclusion 70
8 Suggestions 70
9 Bibliography 71
10 Annexure 75
INTRODUCTION OF TOPIC
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Investment
An investor is typically distinct from a trader or dealer. An investor puts capital to use
for long-term gain, while a dealer seeks to generate short-term profits by purchasing
and selling securities again and again.
Investor’s Perception
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An investor’s perception is his way of understanding something related to the
investment invested in. It may also refer to his thoughts or ideas that he intends to
invest in.
Investors
Passive Investors: This kind of investor does not try to earn the biggest possible
gains all time. Instead, they accept reasonable gains in exchange for a low stress.
They do not continuously pay attention or study market information or trends. They
may invest in mutual funds so that the fund’s managers can make buy and sell
decisions as per their knowledge.
Speculators: Some investors look for a chance to make money faster than normal.
They search the market for stocks that are poised to go up because of an impending
deal. They spread the news of announcements about mergers that may affect a
company image positively, and then they try to purchase the stocks of those
companies. They tend to sell it after a stock makes them a little money, reasoning that
they can repeat the process of buying and selling frequently and therefore outperform
the market.
Stock Market
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Indian stock market is one of the oldest in Asia, nearly 200 years ago. A stock market,
share market or equity market is the aggregation of sellers and buyers of shares,
which provides them ownership claims of shares in a company. These may include
securities listed on a public stock exchange.
There are majorly two public stock exchanges in India i.e. Bombay Stock Exchange
of India (BSE) and National Stock Exchange of India (NSE).
BSE – BSE is an Indian stock exchange located on Dalal Street in Mumbai. It was
established in 1875. The BSE is the world’s 7th largest stock exchange. It is Asia’s
oldest stock exchange.
In order to enable the market participants, analysts etc., to track the various ups and
downs in the Indian stock market, the Exchange has introduced in 1986 an equity
stock index called BSE – SENSEX that subsequently became the barometer of the
moments of the share prices in the India Stock Market.
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NSE – NSE is the leading stock exchange of India, located in Mumbai, Maharashtra.
It was established in 1992 as first electronic exchange in the country to provide a
modern, fully automated screen based trading system.
Investment Strategies
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Value Investing: A value investor purchases assets that they accept to be
undervalue and sells the similar asset when overvalued. To identify
undervalued securities, a value investor performs the analysis of financial
reports, accounting ratios like Earning Per Share (EPS), Sales Growth, Price to
Earnings ratio (P/E ratio) etc. Of the issuer to evaluate the value of security.
LITERATURE REVIEW
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SR. NAME OF YEAR TITLE OF FINDINGS
No AUTHOR THE STUDY
1. Prof (Dr.) Dec, Investors The study listed many factors
Iqbal Thonse 2019 Perception influencing the investor’s decision such
Hawaldar, towards as risk return, tax benefits, maturity
Dr. Habeeb Stock period, capital appreciation and safety
Ur Rahiman Market: An of principal. Majority of investors
Exploratory believed return is the most important
Approach influencing factor. Majority of investors
preferred to invest in stocks, when
compared to mutual funds and
derivates. The study revealed that
majority of the investors took their own
decision to invest; some were
influenced by workshops, seminars,
advertisements and newspapers. Study
attempted to study behavior of the
investors towards stock market.
2. Ms. Anitha, 2014 Investors’ The study attempted to know the
D. Phani Perception preferences and analyze significance of
Bhargavi Towards demographic factors of population like
Investment age, gender, occupation, education,
income, savings, family size over
several elements of investment decision
based on characteristics of investments
like period of investment, frequency of
investment, reach of information source,
and analytical abilities. Demographic
factors were considered as independent
variables. Investment decision making
behavior in risky situation was taken as
dependent variable. The direct effects of
these demographic factors on risk
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perception and risk propensity on risky
decision making was established. The
study covered that mature age investors
had more risk perception and younger
perceived the risk differently. Gender
effected the decision in a manner that
females had less risk preferences than
males.
3. Vijay .S, 2018 A Study on This study focused on the main factors
Dr. Ch. Investors influencing investor’s perception. They
Balanageswa Perception were return, market pattern, risk, short
ra Rao Towards term profitability, price of the share,
Share Market dividend policy, past financial
in Sharekhan performance, company’s standing,
Ltd. board’s reputation, current earnings of
the firm and expert opinion. Maximum
investors were aware of all the
investment options. Investors like to put
resources into various and more than
one avenue and maximum investors
prefer to invest in shares, mutual funds
& debentures. The idea of investment
varied from one individual to another
because it relied upon various
parameters like future financial goals,
the present & the future income, risk
bearing capacity, the current necessity
and numerous others.
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T Naraya Avenues investment avenue were dependent on
Reddy the investment objectives such as risk,
return, liquidity & safety of the
investment. A large portion of investors
entered into the share market for returns
and bond. Investors took risk; faced
challenges and gained returns
periodically. Risk aversion investors
liked to invest in mutual fund
investment avenue for future needs.
5. Surbhi Jan, Retail The study covered 500 active retail
Dubey, Dr. 2019 Investors investors taken as a sample from almost
Sameer Awareness 29 million retail investors in India. It
Sharma towards was found that there is significant trend
Stock Market regarding
Investment Statements:
Retail investors are aware of
stock market investment.
Retail investors are aware of
their savings and investment in
stock market.
6. N.S.V.N Nov, A Study on Research was done in the selected areas
Raju, Dr. 2016 Investors of Visakhapatnam District (A.P.). Data
Anita Patra Attitude was collected from 200 respondents.
towards The investors had numerous assets to
Investment in choose from and the amount of
Equity Stocks information available to them
with continuously increases. Indian stock
Reference to market is considered to be highly
Visakhapatna volatile (exceptionally unpredictable),
m District sensitive and reactive to unanticipated /
(Andhra unforeseen shocks and news and it takes
Pradesh) no time to impact the market activities.
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Research was analyzed with the help of
primary data gathered using a structured
questionnaire by adopting five point
likert scale and analyzed by using
percentage method, chi- square test,
weighted average ranking method.
According to the investors, the average
value of the best five highly influential
variables were - what the company
does, profit / benefits, history, outlook
of the earnings, and plan of action of the
company. The four variables with the
lowest priority were vision and mission
of the organization, values and
philosophy, customer/ client reviews
and competitive advantage over rivals.
7. Arup Kumar Jan, Analysis of The investigation gathered the primary
Sarkar, 2018 Investment data from 400 randomly selected
Dr. Tarak Behaviour of individual investors of stock market
Nath Sahu Individual from various districts of West Bengal.
Investors of The investigation tracked down that the
Stock awareness levels of the individual
Market: A investors were on moderate level and
Study in financial awareness was more than
Selected social learning. Perceived risk attitude
Districts of was mainly guided by affect rather than
West Bengal cognition. The investigation showed
that demographic factors, awareness
and perceived risk attitude had impact
on investment behavior of individual
investors of stock market.
Age has significant effect on
Prospects Bias and Herding
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Bias.
Occupation has significant
impact on Markets Bias and
Herding Bias.
Annual income has significant
influence on Prospects Bias,
Markets Bias and Herding Bias.
Experience has significant effect
on Markets Bias.
Objective of making investment
has significant effect on
Prospects Bias.
Social Learning has significant
effect on Heuristics Bias.
Financial Awareness has
significant effect on Markets
Bias and Herding Bias.
Affect has significant impact on
Heuristics Bias, Markets Bias
and Herding Bias.
Cognition has significant impact
on Heuristics Bias and Herding
Bias.
8. Dr. M. Sept, A Study on From the absolute population of
Malathy, 2017 Factors Chennai, 75 individuals were chosen as
Saranya. J Influencing sample test size for the examination and
Investors’ the data was collected through a
Perception structured questionnaire. The factors
towards influenced investor’s perception were
Stock Market return on investment, market trend or
Decision risk, short term profitability, price of
the share, dividend policy, past
financial performance, company
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reputation, reputation of the board,
current earnings of the company and
expert opinion. The main factors that
influenced investments were the return
on investment and short-term
profitability.
9. Dr. Gagan Dec, Investors’ 120 samples were selected for this
Kukreja 2012 Perception descriptive research study in which
for Stock systematic sampling technique was
Market: used. Major findings of this study
Evidences included, age has significant impact on
from investment, and educational
National qualification has significant impact on
Capital tax advantages. Educational
Region of qualification has significant related with
India transparency of transaction in cash
market, tax advantage in cash market,
past performance of the company in
cash market. Occupation has significant
influence on investment pattern in cash
market, services of the stock broker in
cash market, risk and uncertainty in
future & option, size of investment in
future & option, services of the stock
broker in future & option. Age has
significant influence on cash market,
future & option. These variables have
significant influence on investor
behaviour. Charges, liquidity and
investment attributes were mediating
factor for investor’s perception.
10. Dr. K. May Investors The data were collected from 290 stock
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Banumathy, 2016 Awareness market investors of Puducherry using
Dr. R. About structured questionnaire. The analysis
Azhagaiah Investment in was made using Mann-Whitney U test
Stock Market and Kruskal-Wallis H Test. The study
proved that there is a significant
difference between male and female
investors on awareness of stock market
investment; there is a significant
difference among the age, educational
background and occupational groups
with respect to awareness of stock
market investment.
11. D. Kinslin, 2018 Investors In this research, Investors behaviour and
V. P. Behavior and perception towards stock indices
Velmurugan Perceptions performance of the stock market was
Towards studied. Data was collected from 416
Stock equity investors in diverse southern part
Market: of Tamil Nadu. The purpose was to
Structural observe various dimensions of
Equation investor’s behavior – rational behavior,
Modeling irrational behavior and their stock
Approach decision making behavior affect
perceptions towards bench mark stock
indices performances i.e. BSE - Sensex
and NSE – Nifty. The result of the study
was that investor’s behavior has
positive effects on stock indices
performances. It was also proved that
there is a strong positive relationship
between investor behavior and
perceptions towards stock indices
performances. The finding indicated
that investors are partly rational and
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partly irrational because they collected
complete financial information and used
it for investment decision making and
also used short cuts for decision
making.
12. Dr. Sangeeta 2015 Perception of The study was done to understand the
Jauhari, Investors in psychology of an investor, parameters
Dr. Deepti Stock and factors related to stock market. The
Maheshwari, Market: A study is based on a rational to
Prof. H.S. Case Study understand the facts and ideologies that
Yadav, of Bhopal an investor carries about the stock
Prof. Kavita Region market. Primary data was collected
Indapurkar from the cross section society of Bhopal
region using systematic random
sampling. Data was analyzed with the
help of descriptive analysis and
regression analysis. Investment pattern
and its factors mainly consider the age,
level of knowledge and source of
income. Different age levels have
different requirements and
responsibilities. Due to these factors the
levels of investment gets varied as per
the age of the investor.
13. Dr. K. 2016 A Study on This study investigated the perceptions
Sowmya, Investors towards various investment avenues in
J. Mounika Perception Hyderabad, city of Telangana. The
Reddy towards study employed both primary and
Investment secondary data and the size of the
Avenues sample was 200. As per the respondents
opinion many of them showed interest
in the fixed deposits savings and it was
followed by stock markets, mutual
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funds, gold/silver and bonds/debentures
respectively. The study distinctly came
out with the regular income was prime
objective for investment and it was
followed by more income/ profit, capital
appreciation and safety return of capital
and interest respectively.
14. Haripriya VR, July A Conceptual The study specified that there is a
Dr. R. 2008 Study on significant relationship between the
Thenmozhi Investors investor’s attitudes and stock market
Attitude reserves. It was general and noticeable
towards phenomena that investment
Stock Market configuration and its degree also
Investment in considered the age, knowledge level and
India source of income. Any investor while
investing witnesses how much he or she
earns from the individual sources,
measures the investment replacements
available in stock market. Different age
levels have different requirements and
responsibilities. The accessibility of
income and availability of investment
substitutes also plays a substantial role
in defining the behavior of investor
towards the investment. There is a
significant relationship between the
local investor’s perception of stock
market regulations and their Intention to
participate at NSE. The main aspects
persuading investments are the return
on investment and short-term
profitability.
15. Dr. K. Dec An Analysis The objective of the study was to find the
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Dhanalakshmi, 2018 Of Investors’ significant difference and impact of
Dr. R. Rajesh Attitude attitude dimensions on overall satisfaction
Ramkumar Towards level of share investors in Madurai city. A
Share structured questionnaire was used to
Investment collect the primary data and used books,
In Madurai articles and websites as secondary data.
City With The data was collected from 377 samples.
Special This study provides evidence that attitudes
Reference To play an important role in investing and
Reliance retaining the share market. The investors
Capital are having different attitudes on share
market. From the attitude dimensions the
concern about the share market is ruling
the first place in investors mind and
commonly the investors want minimum
return with low level risk. The company
should create the awareness about the
share market in the investors mind and the
company should provide educational
material personalized to meet the
investor’s specific needs.
16. Gowtham Oct, Influences Of This study seek to identify whether factors
Ramkumar 2017 Stock Market influencing investor perceptions has a
Factors On significant impact on their investment
Investment choices and arrives at a meaningful
Decisions – conclusion which can benefit people
A Study In dealing in stock exchanges and also
Relation To provides scope for further researches in
Investors this area for researchers. Investors should
Perception be risk loving to be successful in the
investments. Not all investors are
successful investors. The sample size for
this study is 90 respondents. The sample
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consists of retail investors in Chennai city
who engage in stock market trading
through institutional brokers mostly the
banks. The sampling design used for this
study is random sampling. The primary
data for this study is collected through
questionnaires. The questionnaire is
divided into two parts consisting of
demographic profile and factors
influencing investor perceptions. The
secondary data for this study is collected
from various journals, websites and
magazines to support this research study.
The success of the investor in the stock
market depends on his or her investment
decision. Investors should consider
economic factors, company factors and
their demographic profile while deciding
The investment avenues.
17. Raj Pokharel 2011 A Survey of This paper shows investors preference on
Investors stock market of Nepal Stock Exchange
Preference on (NEPSE). The study is based on survey
Stock Market method using structured questionnaire. The
: A Case of results demonstrated that investors were
Nepal Stock found to have investment interest in
Exchange secondary market. The reasons for
selecting shares are mostly liquidity and
high rate of earning. The data was
collected through Questionnaire and
sample size was 44. The major conclusion
of the study is that investor's preference for
investment in listed companies of shares
was the liquidity and high rate of return
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and the influencing factors of investment
decision was brokers advice rather than the
investors sole decision.
18. P Pavan Augus A new The basic purpose behind preparing this
Kumar t 2015 outlook on research paper is to observe the different
investors’ kinds of investors perception and their
perception behaviour towards the stock market. This
towards stock research is a descriptive research study, in
market which, systematic sampling technique is
used. 50 samples are selected for this
study. The Study concluded that we human
beings have good magnetic power.
Everything depends on law of attraction.
We attract all the situations, people and
circumstances in our life. Then why can’t
we attract money. It is all because of our
limited perception and attitude about
money. Money is not just currency notes.
It is the energy. Leave the misconception
that the stock market is full of gambling.
19. S. M. Zahidur Dec, Factors This study aimed to identify the investors’
Rahman, 2016 Affecting perceptions towards investment decision in
Jannatul Investors’ stock market of Bangladesh and to
Ferdous Bristy Perception compare the identified influential factors
towards with respect to the demographic
Investment characteristics of the investors. Data was
In Stock collected from 160 investors of Dhaka
Market in Stock Exchange through structured closed-
Bangladesh: ended questionnaire designed with 5 point
A Study on Likert scale having 25 variables. Marketers
Investors of & the people associated with stock market
Khulna City very often take into account the
suggestions from friends, family & peers.
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Friends, family & peers suggestion is
usually declared as advice given to their
closest people to buy, sell or hold security
and also regarding the merits of a
particular stock. In this study, friends,
family & peers suggestion differ in terms
of gender & age group.
20. Rahnuma Dec,2 Behavioral Share market investors’ confidences hit the
Akhter, 013 Aspects of lowest ebb. The general index of Dhaka
Sultan Ahmed Individual Stock Exchange lost a massive points or
Investors for percent, as panic-stricken investors went
Investment in for heavy selling, in most cases offloading
Bangladesh their entire stocks. Investors need
Stock Market knowledge about stock market. They also
need to know how and when should invest
in the stock market. Dhaka Stock
Exchange and relevant agencies arrange
the awareness program but few investors
participates the program. The media has an
impact on the stock markets and the
economy in general. Media can play a role
in the recovery of the broken stock market.
Sample of 225 people of various brokerage
(trading) houses mainly located in different
locations of Dhaka city. Majority of the
respondents were willing to buy in the
bearish market. Majority of the investors
were continuous in trading and they did
not like to stay away from investment. In
the field of firm’s image, we found that
business performance, reputation of the
firm, firm’s status, feelings for a firm’s
product and services, firm’s involvement
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in solving community problem influence
investor’s decision. Investors were also
influenced by firm’s ethical operations.
Investor’s decision was significantly
influenced by the firm’s accounting
information like EPS, financial statement,
DPS, expected dividend, past performance
etc.
21. V. Rajarajan June Investors' This paper addresses the issue of
2003 Demographic association between investors'
s and Risk demographics and risk bearing capacity by
Bearing presenting detailed evidence. It provides
Capacity empirical results that characterise the
relationship between various demographic
characteristics and the risk exposure of
individual portfolios. The evidence from
cross sectional data suggests that
individuals' demographic characteristics do
have strong association with their risk
bearing capacity. This study is first of its
kind on Indian Investors bringing out
interesting facts hither to unexplored,
which can be of use to the financial
community in general and to financial
product designers and marketers in
particular. The study confirms the earlier
findings regarding the relationship between
age and income and the risk bearing
capacity of investors.
22. Hussein A. 2005 Factors The study aimed at identifying factors
Hassan Al- Influencing influencing the UAE investor behavior.
Tamimi Individual 350 samples from Dubai Financial Market
Investor and Abu Dhabi Securities Market were
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Behavior: An asked to fill questionnaires. The
Empirical questionnaire included thirty four items
study of the that belonged to five categories, namely,
UAE self-image/ firm-image co-incidence;
Financial accounting information; neutral
Markets information; advocate recommendations;
and personal financial needs. Six factors
were found to be the most influencing
factors on the UAE investor behavior. The
most influencing factor was in order of
importance: expected corporate earnings,
get rich quick, stock marketability, past
performance of the firm’s stock,
government holdings and the creation of
the organized financial markets. Five
factors which were found to be the least
influencing factors in order of importance
were: expected losses in other local
investments, minimizing risk, expected
losses in international financial markets,
family member opinions, gut feeling on the
economy. Two factors had unexpectedly
least influence on the behavior of the UAE
investors behavior, namely the religious
beliefs and the factor of family member
opinions.
RESEARCH METHODOLOGY
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PROBLEM STATEMENT:
The research is undertaken to study the investors’ perception, problems faced
by them and factors influencing their decision towards stock market in Vapi.
OBJECTIVES:
To identify the investor’s perception towards stock market.
To study the problems faced by investor’s in stock market investment.
To study the factors influencing investment decision in stock market.
RESEARCH DESIGN:
Descriptive Research
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NUMBER OF QUESTIONS : 16 Questions
LIMITATIONS OF STUDY:
The sample size was limited to 154.
The respondents might have given biased opinion.
The samples perception is their own opinion and might not be fair or
true as whole.
Numbers of male and female samples are not equal.
DEMOGRAPHIC DETAILS:
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1) Age
a) Below 20 years
b) 21 – 30 years
c) 31 – 40 years
d) Above 40 years
Cumulative
Frequency Percent Percent
Valid Below 20 28 18.2 18.2
21-30 103 66.9 85.1
31-40 17 11.0 96.1
Above 40 6 3.9 100.0
Total 154 100.0
Percent
Above 40
31-40
Valid
Percent
21-30
below 20
0 20 40 60 80
INTERPRETATION:
From the above bar graph it is observed that out of total no. Of samples i.e. 154, 28
samples (18.2%) are below 20 years, 103 samples (66.9%) are from the age group of
21-30 years, 17 samples (11%) are from the age group of 31-40 years and only 6
samples (3.9%) are above 45 years of age. The Majority of the samples are from the
age group of 21-30 years.
2) Gender
a) Male
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b) Female
Cumulative
Frequency Percent Percent
Valid Male 102 66.2 66.2
Female 52 33.8 100.0
Total 154 100.0
Percent
Female
Valid
Percent
Male
0 10 20 30 40 50 60 70
INTERPRETATION:
From the above bar graph it is observed that out of total no. Of samples i.e. 154, 102
samples (66.2%) are male and 52 samples (33.8%) are female. The Majority of
samples are male.
3) Education Qualification
a) Under Graduate
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b) Post Graduate
c) Diploma
d) Others
Cumulative
Frequency Percent Percent
Valid Under graduate 24 15.6 15.6
Graduate 49 31.8 47.4
Post graduate 68 44.2 91.6
Diploma and Others 13 8.4 100.0
Total 154 100.0
Percent
Post graduate
Valid
Percent
Graduate
Under gradaute
0 10 20 30 40 50
INTERPRETATION:
From the above bar graph it is observed that out of total no. Of samples i.e. 154, 24
samples (15.6%) are Under Graduate, 49 samples (31.8%) are Graduate, 68 samples
(44.2%) are Post Graduate and 13 samples (8.4%) are from Diploma and Others. The
Majority of samples are Post Graduate.
4) Occupation
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a) Commerce / Accounts
b) Medical
c) Engineering
d) Management
e) Others
Cumulative
Frequency Percent Percent
Valid Commerce / Accounts 51 33.1 33.1
Medical 15 9.7 42.9
Engineering 35 22.7 65.6
Management 31 20.1 85.7
Others 22 14.3 100.0
Total 154 100.0
Percent
others
Management
Valid
Engineering
Percent
Medical
Commerce / Accounts
0 5 10 15 20 25 30 35
INTERPRETATION:
From the above bar graph it is observed that out of total no. Of samples i.e. 154, 51
samples (33.1%) are from Occupation of Commerce/Accounts, 15 samples (9.7%) are
from Medical, 35 samples (22.7%) are from Engineering, 31 samples (20.1%) are
from Management and 22 samples (14.3%) are from others. The Majority of samples
are from Commerce/Accounts as Occupation.
5) Annual Income
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a) Below 3 lakhs
b) 3 – 5 lakhs
c) 5 – 7 lakhs
d) More than 7 lakhs
Cumulative
Frequency Percent Percent
Valid Below 3 lakhs 83 53.9 53.9
3-5 lakhs 48 31.2 85.1
5-7 lakhs 17 11.0 96.1
More than 7 lakhs 6 3.9 100.0
Total 154 100.0
Percent
5-7 lakhs
Valid
Percent
3-5 lakhs
Below 3 lakhs
0 10 20 30 40 50 60
INTERPRETATION:
From the above bar graph it is observed that out of total no. Of samples i.e. 154, 83
samples (53.9%) have annual earnings below 3 lakhs, 48 samples (31.2%) have
annual earning between 3-5 lakhs, 17 samples (11%) have earnings between 5-7 lakhs
and 6 samples (3.9%) have annual earnings more than 7 lakhs. The Majority of
samples have annual earnings below 3 lakhs.
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a) Daily
b) Monthly
c) Quarterly
d) Annually
Percent
Annually
Quartely
Valid
Percent
Monthly
Daily
0 10 20 30 40 50
INTERPRETATION:
From the above bar graph it is observed that out of total no. Of samples i.e. 154, 23
samples (14.9%) invest in stock market daily, 68 samples (44.2%) invest monthly, 33
samples (21.4%) invest Quarterly and 30 samples (19.5%) invest annually. The
Majority of samples invest in stock market monthly.
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7) Fall under the tax payer group
a) Yes
b) No
Percent
No
Valid
Percent
yes
0 10 20 30 40 50 60 70
INTERPRETATION:
From the above bar graph it is observed that out of total no. Of samples i.e. 154, 93
samples (60.4%) falls under Tax payer and 61 samples (39.6%) do not fall under tax
payer group. The Majority of samples fall under tax payer group.
37 | P a g e
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strongly disagree
Percent
Strongly Disagree
Disagree
Valid
Neutral
Percent
Agree
Strongly Agree
0 10 20 30 40 50
INTERPRETATION:
From the above bar graph it is observed that out of total no. Of samples i.e. 154, 21
samples (13.6%) strongly agreed that there is lack of transparency in stock market, 50
samples (32.5%) agreed, 69 samples (44.8%) were neutral, 13 samples (8.4%)
disagreed and 1 sample (0.6%) strongly disagreed. The Majority of samples were
neutral on ‘there is lack of transparency in stock market’.
38 | P a g e
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strongly disagree
Strongly Disagree
Disagree
Valid
Neutral
Series1
Agree
Strongly Agree
0 10 20 30 40 50
INTERPRETATION:
From the above bar graph it is observed that out of total no. Of samples i.e. 154, 38
samples (24.7%) strongly agreed that there is mispricing of shares and insider trading
in stock market, 61 samples (39.6%) agreed, 47 samples (30.5%) were neutral, 7
samples (4.5%) disagreed and 1 sample (0.6%) strongly disagreed. The Majority of
samples agreed on ‘there is mispricing of shares and insider trading in stock market’.
39 | P a g e
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strongly disagree
Percent
Strongly Disagree
Disagree
Valid
Neutral
Percent
Agree
Strongly Agree
0 10 20 30 40 50
INTERPRETATION:
From the above bar graph it is observed that out of total no. Of samples i.e. 154, 27
samples (17.5%) strongly agreed that inadequate information is disclosed in stock
market to make a decision of investment, 66 samples (42.9%) agreed, 49 samples
(31.8%) were neutral, 7 samples (4.5%) disagreed and 5 samples (3.2%) strongly
disagreed. The Majority of samples agreed on ‘Inadequate information is disclosed in
stock market to make a decision of investment’.
a) Strongly agree
40 | P a g e
b) Agree
c) Neutral
d) Disagree
e) Strongly disagree
Percent
Strongly Disagree
Disagree
Valid
Neutral
Percent
Agree
Strongly Agree
0 10 20 30 40 50
INTERPRETATION:
From the above bar graph it is observed that out of total no. Of samples i.e. 154, 31
samples (20.1%) strongly agreed that they have willingness to accept high risk for
high return, 59 samples (38.3%) agreed, 48 samples (31.2%) were neutral, 12 samples
(7.8%) disagreed and 4 samples (2.6%) strongly disagreed. The Majority of samples
agreed on ‘Willingness to accept high risk for high return’.
12) Prefer short term and regular return more and above than long term returns:
41 | P a g e
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strongly disagree
Percent
Strongly Disagree
Disagree
Valid
Neutral
Percent
Agree
Strongly Agree
0 10 20 30 40 50
INTERPRETATION:
From the above bar graph it is observed that out of total no. Of samples i.e. 154, 29
samples (18.8%) strongly agreed that they prefer short term and regular returns more
and above than long term returns, 59 samples (38.3%) agreed, 49 samples (31.8%)
were neutral, 15 samples (9.7%) disagreed and 2 samples (1.3%) strongly disagreed.
The Majority of samples agreed on “Prefer short term and regular return more and
above than long term returns”.
42 | P a g e
Particular Strongly Agree Neutral Disagree Strongly
Agree Disagree
Future
Security
Wealth
Maximization
Regular
Return
Tax Benefit
Purpose of investment
[Future Security] Frequency Percent Cumulative Percent
Valid Strongly Agree 82 53.2 53.2
Agree 39 25.3 78.6
Neutral 22 14.3 92.9
Disagree 6 3.9 96.8
Strongly disagree 5 3.2 100.0
Total 154 100.0
Percent
Strongly disagree
Dis Agree
Valid
Neutral
Percent
Agree
Strongly Agree
0 10 20 30 40 50 60
INTERPRETATION:
From the above bar graph it is observed that out of total no. Of samples i.e. 154, 82
samples (53.2%) strongly agreed that their purpose of investment is Future Security,
39 samples (25.3%) agreed, 22 samples (14.3%) were neutral, 6 samples (3.9%)
disagreed and 5 samples (3.2%) strongly disagreed. The Majority of samples strongly
agreed that their purpose of investment is Future Security.
43 | P a g e
Purpose of investment [Wealth
Maximization] Frequency Percent Cumulative Percent
Valid Strongly Agree 50 32.5 32.5
Agree 67 43.5 76.0
Neutral 31 20.1 96.1
Disagree 5 3.2 99.4
Strongly disagree 1 .6 100.0
Total 154 100.0
Percent
Strongly disagree
Disagree
Valid
Neutral
Percent
Agree
Strongly Agree
0 10 20 30 40 50
INTERPRETATION:
From the above bar graph it is observed that out of total no. Of samples i.e. 154, 50
samples (32.5%) strongly agreed that their purpose of investment is wealth
maximization, 67 samples (43.5%) agreed, 31 samples (20.1%) were neutral, 5
samples (3.2%) disagreed and 1 sample (0.6%) strongly disagreed. The Majority of
samples agreed that their purpose of investment is wealth maximization.
44 | P a g e
Purpose of investment
[Regular Return] Frequency Percent Cumulative Percent
Valid Strongly Agree 44 28.6 28.6
Agree 49 31.8 60.4
Neutral 51 33.1 93.5
Disagree 9 5.8 99.4
Strongly disagree 1 .6 100.0
Total 154 100.0
Percent
Strongly disagree
Disagree
Valid
Neutral
Percent
Agree
Strongly Agree
0 5 10 15 20 25 30 35
INTERPRETATION:
From the above bar graph it is observed that out of total no. Of samples i.e. 154, 44
samples (28.6%) strongly agreed that their purpose of investment is regular return, 49
samples (31.8%) agreed, 51 samples (33.1%) were neutral, 9 samples (5.8%)
disagreed and 1 sample (0.6%) strongly disagreed. The Majority of samples were
neutral that their purpose of investment is regular return.
45 | P a g e
Purpose of investment [Tax
Benefit] Frequency Percent Cumulative Percent
Valid Strongly Agree 60 39.0 39.0
Agree 53 34.4 73.4
Neutral 27 17.5 90.9
Disagree 12 7.8 98.7
Strongly disagree 2 1.3 100.0
Total 154 100.0
Percent
Strongly disagree
Disagree
Valid
Neutral
Percent
Agree
Strongly Agree
0 10 20 30 40 50
INTERPRETATION:
From the above bar graph it is observed that out of total no. Of samples i.e. 154, 60
samples (39.0%) strongly agreed that their purpose of investment is tax benefit, 53
samples (34.4%) agreed, 27 samples (17.5%) were neutral, 12 samples (7.8%)
disagreed and 2 samples (1.3%) strongly disagreed. The Majority of samples strongly
agreed that their purpose of investment is tax benefit.
14) Consider goodwill and reputation of a firm before making investment into it
46 | P a g e
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strongly disagree
Percent
Strongly Disagree
Disagree
Valid
Neutral
Percent
Agree
Strongly Agree
0 10 20 30 40 50
INTERPRETATION:
From the above bar graph it is observed that out of total no. Of samples i.e. 154, 38
samples (24.7%) strongly agreed that they do consider goodwill and reputation of a
firm before making investment into it, 62 samples (40.3%) agreed, 37 samples
(24.0%) were neutral, 15 samples (9.7%) disagreed and 2 samples (1.3%) strongly
disagreed. The Majority of samples agreed on ‘Consider goodwill and reputation of a
firm before making investment into it’.
47 | P a g e
15) Secondary market investment is more preferred due to past available
performances of the firm than primary market investment
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strongly disagree
Percent
Strongly Disagree
Disagree
Valid
Neutral
Percent
Agree
Strongly Agree
0 10 20 30 40 50
INTERPRETATION:
From the above bar graph it is observed that out of total no. Of samples i.e. 154, 24
samples (15.6%) strongly agreed that Secondary market investment is more preferred
due to past available performances of the firm than primary market investment, 65
samples (42.2%) agreed, 50 samples (32.5%) were neutral, 13 samples (8.4%)
disagreed and 2 samples (1.3%) strongly disagreed. The Majority of samples agreed
on ‘Secondary market investment is more preferred due to past available
performances of the firm than primary market investment’.
48 | P a g e
16) Analyse and update portfolio whenever new information enters in the stock
market
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strongly disagree
Percent
Strongly Disagree
Disagree
Valid
Neutral
Percent
Agree
Strongly Agree
0 10 20 30 40 50
INTERPRETATION:
From the above bar graph it is observed that out of total no. Of samples i.e. 154, 33
samples (21.4%) strongly agreed that they analyse and update portfolio whenever new
information enters in the stock market, 71 samples (46.1%) agreed, 42 samples
(27.3%) were neutral, 7 samples (4.5%) disagreed and 1 sample (0.6%) strongly
disagreed. The Majority of samples agreed on ‘Analyse and update portfolio
whenever new information enters in the stock market’.
49 | P a g e
HYPOTHESIS
H0: There is no significant difference between ‘age’ and ‘willingness to accept high
risk for high return.’
ANOVA
2) Gender Between
.547 4 .137 .601 .663
Groups
Within
33.895 149 .227
Groups
Total 34.442 153
3) Education Between
1.913 4 .478 .646 .630
Qualification Groups
Within
110.269 149 .740
Groups
Total 112.182 153
50 | P a g e
4) Occupation
12.001 4 3.000 1.421 .230
Between
Groups
Within
314.545 149 2.111
Groups
Total 326.545 153
51 | P a g e
Prefer short term and regular return more and above than long term
returns
H0: There is no significant difference between ‘age’ and ‘preference for short term
and regular return more and above than long term returns.’
H1: There is no significant difference between ‘gender’ and ‘preference for short term
and regular return more and above than long term returns.’
H3: There is no significant difference between ‘occupation’ and ‘preference for short
term and regular return more and above than long term returns.’
H4: There is no significant difference between ‘annual income’ and ‘preference for
short term and regular return more and above than long term returns.’
ANOVA
52 | P a g e
H0 is accepted. There is no significant difference between ‘age’ and ‘preference for
short term and regular return more and above than long term returns.’
53 | P a g e
Purpose of investment: Future Security
H0: There is no significant difference between ‘age’ and ‘purpose of investment for
future security.’
ANOVA
54 | P a g e
H0 is accepted. There is no significant difference between ‘age’ and ‘purpose of
investment for future security.’
55 | P a g e
Purpose of investment: Wealth Maximization
H0: There is no significant difference between ‘age’ and ‘purpose of investment for
wealth maximization.’
ANOVA
56 | P a g e
H0 is accepted. There is no significant difference between ‘age’ and ‘purpose of
investment for wealth maximization.’
57 | P a g e
Purpose of investment: Regular Return
H0: There is no significant difference between ‘age’ and ‘purpose of investment for
regular return.’
ANOVA
58 | P a g e
H0 is accepted. There is no significant difference between ‘age’ and ‘purpose of
investment for regular return.’
59 | P a g e
Purpose of investment: Tax Benefit
H0: There is no significant difference between ‘age’ and ‘purpose of investment for
tax benefit.’
ANOVA
60 | P a g e
H0 is accepted. There is no significant difference between ‘age’ and ‘purpose of
investment for tax benefit.’
61 | P a g e
Consider goodwill and reputation of a firm before making
investment into it
H0: There is no significant difference between ‘age’ and ‘considering goodwill and
reputation of a firm before making investment into it.’
ANOVA
62 | P a g e
H0 is accepted. There is no significant difference between ‘age’ and ‘considering
goodwill and reputation of a firm before making investment into it.’
63 | P a g e
Secondary market investment is more preferred due to past available
performances of the firm than primary market investment
H0: There is no significant difference between ‘age’ and ‘preferring secondary market
investment more due to past available performances of the firm than primary market
investment.’
ANOVA
64 | P a g e
Between Groups 9.955 4 2.489 1.171 .326
4) Occupation Within Groups 316.590 149 2.125
65 | P a g e
Analyze and update portfolio whenever new information enters in
the stock market
H0: There is no significant difference between ‘age’ and ‘analyzing and updating
portfolio whenever new information enters in the stock market.’
H1: There is no significant difference between ‘gender’ and ‘analyzing and updating
portfolio whenever new information enters in the stock market.’
H4: There is no significant difference between ‘annual income’ and ‘analyzing and
updating portfolio whenever new information enters in the stock market.’
ANOVA
66 | P a g e
H0 is accepted. There is no significant difference between ‘age’ and ‘analyzing and
updating portfolio whenever new information enters in the stock market.’
67 | P a g e
FINDINGS FROM DATA ANALYSIS
Out of 154 samples, majority i.e. 103 samples (66.9%) are from the age group
of 21-30 years.
Out of 154 samples, majority i.e. 102 samples (66.2%) are male.
Out of 154 samples, majority i.e. 68 samples (44.2%) are Post Graduate.
Out of 154 samples, majority i.e. 51 samples (33.1%) are from Occupation of
Commerce/Accounts.
Out of 154 samples, majority i.e. 83 samples (53.9%) have annual earnings
below 3 lakhs.
Out of 154 samples, majority i.e. 68 samples (44.2%) invest monthly in stock
market.
Out of 154 samples, majority i.e. 93 samples (60.4%) falls under tax payer
group
Out of 154 samples, majority i.e. 69 samples (44.8%) were neutral on ‘There
is lack of transparency in stock market’.
Out of 154 samples, majority i.e. 61 samples (39.6%) agreed on ‘There is
mispricing of shares and insider trading in stock market’.
Out of 154 samples, majority i.e. 66 samples (42.9%) agreed on ‘Inadequate
information is disclosed in stock market to make a decision of investment’.
68 | P a g e
Out of 154 samples, majority i.e. 59 samples (38.3%) agreed on ‘Willingness
to accept high risk for high return’.
Out of 154 samples, majority i.e. 59 samples (38.3%) agreed on “Prefer short
term and regular return more and above than long term returns”.
Out of 154 samples, majority i.e. 82 samples (53.2%) strongly agreed that
their purpose of investment is Future Security.
Out of 154 samples, majority i.e. 67 samples (43.5%) agreed that their purpose
of investment is wealth maximization.
Out of 154 samples, majority i.e. 51 samples (33.1%) were neutral that their
purpose of investment is regular return.
Out of 154 samples, majority i.e. 60 samples (39.0%) strongly agreed that
their purpose of investment is tax benefit.
Out of 154 samples, majority i.e. 62 samples (40.3%) agreed on ‘Consider
goodwill and reputation of a firm before making investment into it’.
Out of 154 samples, majority i.e. 65 samples (42.2%) agreed on ‘Secondary
market investment is more preferred due to past available performances of the
firm than primary market investment’.
Out of 154 samples, majority i.e. 71 samples (46.1%) agreed on ‘Analyze and
update portfolio whenever new information enters in the stock market’.
69 | P a g e
FINDINGS FROM HYPOTHESIS
There is significant difference between ‘gender’ and ‘preference for short term
and regular return more and above than long term returns.’
There is significant difference between ‘annual income’ and ‘preference for
short term and regular return more and above than long term returns.’
There is significant difference between ‘education qualification’ and ‘purpose
of investment for wealth maximization.’
There is significant difference between ‘annual income’ and ‘purpose of
investment for wealth maximization.’
There is significant difference between ‘education qualification’ and ‘purpose
of investment for regular return.’
There is significant difference between ‘occupation’ and ‘purpose of
investment for regular return.’
There is significant difference between ‘annual income’ and ‘purpose of
investment for regular return.’
There is significant difference between ‘annual income’ and ‘purpose of
investment for tax benefit.’
There is significant difference between ‘education qualification’ and
‘considering goodwill and reputation of a firm before making investment into
it.’
There is significant difference between ‘annual income’ and ‘analyzing and
updating portfolio whenever new information enters in the stock market.’
70 | P a g e
CONCLUSION
As per the study, we can conclude that investors agrees that they face various
problems while making an investment like mispricing of shares, insider trading and
inadequate disclosure of information in share market. Also, Investors have willingness
to accept high risk for high return. They prefer short term and regular return more
than long term returns. Their purposes of investment vary as per their need. Investors
consider goodwill and reputation of firm before making investment. Also, they study
past performance of the firm before making investment. They analyze and update
their portfolio whenever new information enters in market.
SUGGESTION
Certain steps should be taken by SEBI to build more confidence
and sense of security in investors.
SEBI should pay more attention to regulate insider trading and
mispricing of shares in market.
All the data of the market, exchange and listed firms should be
disclosed completely to investors for making investment decisions.
71 | P a g e
BIBLIOGRAPHY
REFERENCES
https://www.investopedia.com/terms/i/investor.asp
https://finance.zacks.com/types-investors-stock-market-4572.html
https://www.nseindia.com/
https://www.bseindia.com/
https://en.wikipedia.org/wiki/Investment#:~:text=Intermediaries%20and
%20collective%20investments,-
Investments%20are%20often&text=These%20intermediaries%20include
%20pension%20funds,to%20make%20large%2Dscale%20investments.
https://www.nerdwallet.com/article/investing/how-to-invest-in-stocks
72 | P a g e
CITATION
Vijay .S, Dr. Ch. Balanageswara Rao (2018) A Study on Investors Perception
Towards Share Market in Sharekhan Ltd
https://www.ijtsrd.com/papers/ijtsrd18384.pdf
Surbhi Dubey, Dr. Sameer Sharma (Jan, 2019) Retail Investors Awareness
towards Stock Market Investment
http://ierj.in/journal/index.php/ierj/article/view/1810/1719
N.S.V.N Raju, Dr. Anita Patra (Nov, 2016) A Study on Investors Attitude
towards Investment in Equity Stocks with Reference to Visakhapatnam
District (Andhra Pradesh) https://www.ijltemas.in/DigitalLibrary/Vol.5Issue11/94-
99.pdf
Arup Kumar Sarkar, Dr. Tarak Nath Sahu (Jan, 2018) Analysis of Investment
Behaviour of Individual Investors of Stock Market: A Study in Selected
Districts of West Bengal http://www.pbr.co.in/2018/2018_month/Jan/1.pdf
Dr. Gagan Kukreja (Dec, 2012) Investors’ Perception for Stock Market:
Evidences from National Capital Region of India
https://journal-archieves26.webs.com/712-726.pdf
73 | P a g e
D. Kinslin, V. P. Velmurugan (2018) Investors Behavior and Perceptions
Towards Stock Market: Structural Equation Modeling Approach
https://www.sciencepubco.com/index.php/ijet/article/download/24205/12198
Dr. Sangeeta Jauhari, Dr. Deepti Maheshwari, Prof. H.S. Yadav, Prof. Kavita
Indapurkar (2015) Perception of Investors in Stock Market: A Case Study of
Bhopal Region
https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.824.6657&rep=rep1&type
=pdf
74 | P a g e
Rahnuma Akhter, Sultan Ahmed (Dec,2013) Behavioral Aspects of Individual
Investors for Investment in Bangladesh Stock Market
https://www.crimbbd.org/wp-content/uploads/2014/01/04.-Behavioral-Aspects-of-
Individual-Investors.pdf
75 | P a g e
ANNEXURE
1) Age
a) Below 20 years
b) 21 – 30 years
c) 31 – 40 years
d) Above 40 years
2) Gender
a) Male
b) Female
3) Education Qualification
a) Under Graduate
b) Post Graduate
c) Diploma
d) Others
a) Commerce / Accounts
b) Medical
c) Engineering
d) Management
e) Others
76 | P a g e
5) Annual Income
a) Below 3 lakhs
b) 3 – 5 lakhs
c) 5 – 7 lakhs
d) More than 7 lakhs
a) Daily
b) Monthly
c) Quarterly
d) Annually
a) Yes
b) No
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strongly disagree
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strongly disagree
77 | P a g e
10) Inadequate information is disclosed in stock market to make a decision of
investment
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strongly disagree
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strongly disagree
12) Prefer short term and regular return more and above than long term returns:
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strongly disagree
78 | P a g e
13) Purpose of investment:
14) Consider goodwill and reputation of a firm before making investment into it
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strongly disagree
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strongly disagree
16) Analyze and update portfolio whenever new information enters in the stock
market
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strongly disagree
79 | P a g e