GURU NANAK KHALSA COLLEGE OF ARTS, SCIENCE & COMMERCE

(AUTONOMOUS)

(MATUNGA,MUMBAI -400 019)

A PROJECT ON

STUDY ON INVESTORS PERCEPTION TOWARDS ONLINE

TRADING

SUBMITTED BY

PALLAVI DEVIKANT THAKUR

TY. B.COM (ACCOUNTING & FINANCE)

ROLL NO. 105

UNDER THE GUIDANCE OF

Prof. Priyanka Raorane Patil

IN THE PARTIAL FULFILMENT OF THE DEGREE OF BACHELOR

OF COMMERCE ( ACCOUNTING & FINANCE)

UNDER THE

UNIVERSITY OF MUMBAI

2020-2021
 DECLARATION

I, Pallavi Devikant Thakur ,hereby declare that this project report

entitled Study On Investors Perception Towards Online Trading
has been submitted during the year 2020-2021 under the valuable
guidance and supervisions of Prof. Priyanka Raorane Patil in partial
fulfillment of requirements of the bachelor of commerce
(Accounting & Finance) Degree of University of Mumbai.

Further, I extend my declaration that this report is the result of my original

work.

(PALLAVI DEVIKANT THAKUR)

 ACKNOWLEDGMENT

To list who all have helped me is difficult because they are

so numerous and the depth is so enormous.
I would like to acknowledge the following as being
idealistic channels and fresh dimensions in the
completion of this project.
I take this opportunity to thank the University of
Mumbai for giving me the chance to do this project.
I would like to thank my PRINCIPAL, Dr. Kiran
Mangaonkar for providing the necessary facilities required
for completion of this project.
I take this opportunity to thank our Vice Principal &
H.O.D. Dr. Allan D’Souza Alan, for his moral support
and guidance.
I would also like to express my sincere gratitude towards my
project guide Prof. Priyanka Raorane Patil whose guidance
and care made the project successful.
I would like to thank my College Library, for having
provided various reference books and magazines
related to my project.
Lastly, I would like to thank each and every person who
directly or indirectly helped me in the completion of this
project especially my Parents and Peers who supported me
throughout my project.
 CERTIFICATE

This is to certify that PALLAVI DEVIKANT THAKUR . Of

B .Com (Accounting And Finance) Semester VI (2020-2021) has
successfully completed the project on “ study on investors perception
Towards online trading”under the guidance of PROF. PRIYANKA
RAORANE PATIL.
Place:- MUMBAI
Date:-

______________ _______________ ________________

Internal examiner HOD & Coordinator External examiner

__________________

Principle
 INDEX

SR CONTENT PAGE

NO. NO.

1 CHAPTER 1: INTRODUCTION

1.1 HISTORY OF ONLINE TRADING 6-7

1.2 CONCEPTUAL FRAMEWORK 8-13

2 CHAPTER 2: REVIEW OF LITERATURE 14-15

3 CHAPTER 3: RESEARCH OF
METHODOLOGY

3.1 ABOUT THE STUDY 16

3.2 RESEARCH OBJECTIVE 16

3.3 DATA COLLECTION 17

3.4 SAMPLE AREA 17

3.5 SAMPLE SIZE 17

3.6 LIMITATION OF THE STUDY 17

4 CHAPTER :4 OVERVIEW OF ONLINE 18-23

TRADING

5 CHAPTER :5 DATA ANALYSIS AND 24-42

INTERPRETATION

6 CHAPTER :6 RECOMMENDATION 43

7 CHAPTER 7: SUGGESTION AND 44

CONCLUSION

8 REFERENCES 45

9 ANNEXURE 46-50
 CHAPTER 1: INTRODUCTION

The rapidly advancing technology, particularly the Internet, has drastically

changed the social and economic landscapes and every aspect of our daily lives.
In the securities industry, the Internet has facilitated on-line trading, changing the
way the market works, as well as the way the investors access the market.

Stock exchanges worldwide now conduct a bulk of their business online through
brokers and partners, a major shift from the traditional method. In developed
countries, almost all exchange transactions are conducted online. The trend has
slowly picked up in India and two of the largest exchanges, the national Stock
Exchange (NSE) and the Bombay Stock Exchange (BSE) have been conducting
online trade successfully.

1.1 HISTORY OF ONLINE TRADING IN INDIA

Online trading in India actually began way back in the late 1990s with the likes of
ICICI Direct and Sharekhan among the early pioneers in the online trading
business. The online trading business has traversed a long way and it is gradually
becoming the default mode of trading in the Indian markets. More and more retail
and HNI investors are now shifting to the online trading mode due to the benefits
and convenience that it offers.

How did online broking evolve in India over the years?

If you look at online trading in India, there are 4 distinct phases that it has gone
through.
 ● FIRST PHASE ( 1999 till about 2004)

The first phase was the rise of the bankers / brokers where the client deposit
worked as a float to the bank and hence the entire online booking model made a
lot of sense for the bank. That is how the likes of ICICI, Kotak, HDFC, and SBI
among others embarked on this online trading. This phase lasted from 1999 till
about 2004.

● SECOND PHASE ( brokers investing in infrastructure)

The second phase involved brokers investing in infrastructure as they

realized that online broking was the way ahead. The introduction of STT
added a new layer of cost to the customers and brokers had to make efforts
to reduce the costs. This was the second big phase when most of the full
service brokers came into online broking in a big way.

● THIRD PHASE (evolution of device)

The third phase started post the financial crisis of 2008. That was the
time smart phones came into the market with the likes of Apple and
Samsung dominating our communication ecosystem. Now, online trading
did not require a PC but could be conducted on the move from your
mobile smartphone itself.

● FOURTH PHASE (enter of low cost brokers)

The fourth phase was, perhaps, the biggest shift in online broking when
low cost brokers (discount brokers) offered only the online platform but
offered extremely low rates of brokerage. This was a no-frills model and it
gave the real big boost to online trading. Combined with the cheaper and
more efficient smartphones, low-cost booking was a force multiplier for
online trading.
1.2 CONCEPTUAL FRAMEWORK
“On-line trading” is broadly defined as a trading mechanism where investors
place orders and confirm trading results via electronic communication channels,
such as the Internet, mobile phones, and Personal Digital Assistant (PDA). The
whole process of securities transactions, from order placement and routing, order
execution, to trade confirmation, is fully automated, thus enabling the investors
who have placed orders to confirm their trading results within a few seconds.

1.2.1 HOW ONLINE TRADING WORKS?

Most of the investment in stock markets nowadays for retail investors happens
online. Online trading as the name suggests is buying and selling of financial
instruments online.

FOR EXAMPLE:-

Just compare it with your savings account; when you see your savings statement
you see the net balance in your account – but you do not have that cash
physically. Similarly if you buy 40 shares of Infosys and 15 shares of Reliance
Communications and then you sell 10 shares of Infosys and buy 5 more shares of
Reliance Communications over a month; at the end of the month your statement
will show a net balance of 30 shares of Infosys and 20 shares of Reliance
Communications without you having either bought or sold these shares
physically.

1.2.2 Components of a Trading account

An online trading account is made up of three components, these are the
1. savings account,
2. demat account and
3. actual trading account or the e-broking account.
Savings Account: The savings account is linked to the trading account. So when
you want to buy online – the money from your savings account is used to make
the purchase and in case you sell online then the proceeds from the transaction are
directly credited to your savings account.

Demat Account: The demat account is the account which reflects the balance of
the various instruments you hold electronically. In case you have physical shares
you can send them to the respective company registrar and get them
dematerialized (converted to electronic form). These dematerialized shares will
also reflect in your account even if you have not bought them online.

Trading Account: The third component is the actual trading account which
provides you a platform for trading. It is an agreement that you have with a portal
of your choice so that you can use their platform for trading in the primary and the
secondary market.

The type of account that you get will vary according to the portal you choose;
some like 5paisa.com do not have a savings account of their own, so they allow
you to link your savings account from HDFC, ICICI, CITI Bank etc while ICICI
and AXIS Bank offer you all three accounts under one umbrella.

Opening a Trading Account.

For opening a trading account the first thing that you will have to do is choose a
portal that you want to register yourself with. Here the choice is huge which can
be a vice and a virtue as well. The large choice helps you in getting good rates and
a user friendly portal but at the same time trying to find a safe and reliable choice
can be a daunting task. Most private and public sector banks offer this service and
some NBFCs (Non Banking Finance Company) also do it. You need to do your
homework well before you make your choice. The service providers listed below
are known to be amongst the best in the market and are market leaders in terms of
volume of the total business:
Most popular names:
1. ICICI Direct.com from ICICI Bank
2. Indiabulls
3. Kotak Securities from the Kotak Mahindra Group
4. Sharekhan.com
5. HDFC Securities from HDFC Bank).

You would be required to comply with a set of guidelines for account opening.
These are more or less similar irrespective of the financial institution and are laid
down by SEBI (Securities Exchange Board of India) which is the governing body
for stock markets, depositories and depository.

Documents required for account opening include:

● PAN Card
● Identity Proof
● Proof of Residence
● Photograph

Apart from this you will also require an internet connection and some basic
knowledge about markets before you start trading. Most sites offer tips and
tutorials online so these can help you in familiarizing yourself to the world of
trading. All the sites also have helpline numbers listed and the address for your
nearest branch as well; you could choose to visit the branch or ask for a
representative to visit you to complete the account opening formalities.
Alternatively you could fill in the form online and a representative will visit you
to collect the required documents.
How Much Do I Pay?
Again this factor will vary with the service provider you choose. There is a one
time cost which is the account opening cost and there is recurring cost which is
based on the volume of your transaction.

What all Can I Buy Online?

Below mentioned is a list of what all you can buy through your online trading
account. Please remember each bank will not offer all products so you must check
exactly what all you can do with your account before you open one. Reliance
money offers the largest range of products that you can purchase online.

● Stocks
● Initial Public Offers (again stocks, etc)
● Mutual Funds
● Government of India Bonds
● Postal Savings Schemes
● General Insurance
● Life Insurance
● Derivatives Trading
● Commodity Trading

Types of trading .

Let’s dig into the different types of stock trading available in the Indian stock
market, so you can decide which is best suited for you.
1. INTRADAY TRADING:

In intraday trading or day trading, the trader buys or sells the stock on the same
day. The day traders book profits or losses quickly and close their trade before the
closing hours of the stock market. The stocks can be held for a few hours or few
seconds and multiple times in a single day. Intraday trading is highly volatile and
requires fast decision making.

This aggressive style of trading is meant for the active traders who can take quick
actions by tracking the stock market movements regularly. Intraday trading is not
advisable to beginners due to the high amount of risk associated with it.

2. SWING TRADING:

Swing traders wish to hold stocks for more than one day to capture additional
momentum in the price of stocks. They try to predict short term fluctuations
overnight. The prime difference between day traders and swing traders is the time
frame of holding the stock. Most of the technical traders you might have known
come under this category.

3. POSITIONAL TRADING:

In positional trading, the stock holding time period is quite longer stretching over
a few months to years. Positional traders anticipate big price movements over
longer periods in expectation of a large gain. Their trading decisions are based on
technical as well as fundamental analysis to some extent. So, any minor short
term fluctuations are just ignored in this type of stock trading style.

4. TECHNICAL TRADING:

The different trading activities revolve around technical market analysis. Most of
the traders utilise their technical analysis skills to determine price variations in
Indian stock market. The stock prices are meant to be based upon demand and
supply forces. In technical analysis, the view of the market is most crucial in
determining stock prices.

5. FUNDAMENTAL TRADING:

In fundamental trading the focus is on company specific events. The

fundamentalists are basically long term investors who believe in “buy and hold”
strategy. The stock prices are predicted keeping in mind the company, industry
and economic statistics. The intrinsic value of shares is determined by carefully
analysing financial statements, earnings, growth and the management quality.
CHAPTER 2 :- REVIEW OF LITERATURE

“Online stock trading in India: An empirical investigation

In 2007,Nidhi walia and Ravinder kumar’s research report examined the

investor’s preference for traditional trading and online trading, investor’s
perception on online trading and comparing current usage of online trading and
offline trading. This study reveals that out of every 100 investors only 28 trade
online, which points out a question as to why investors were not able to realize the
importance of technology in stock trading.

Online trading has gained momentum from just 0.5% of total traded
volumes 5 Years back, which now accounts for 5% of the total trading volume of
approximately Rs 14000 Cr on NSE. Over the past 2 years, the value of all trades
executed through internet on NSE has grown from less than Rs 100 cr in June
2003 to over Rs 700 Cr in June 2005.

Brad M. Barber and Terrance Odean (2001) He studied the deep relationship
between the investor and his major weapon, the internet, suggesting that a
combination of internet and shareholders voting could become a new tool for
organisations promoting special society welfare like corporate social
responsibility, environmental actions and consumer help.

Panda et al. (2011): He revealed that the majority of investors depend on

newspapers as the source of information. Mostly people who invested in shares
were ranked financial journals and business magazines next to newspapers. Many
investors believed they were not able to get the required information from the
company in time. Many investors were found to face problems while selling
securities.
Kasisomayajula (2012): He found that many investors are facing problems trading
in the stock market due to lack of information about the stock market. Investors
are more founded to invest their money in post office schemes, banks etc. and
they are very confined towards share trading.

Abdul Rahim (2013): Analysed the problems and prospects of online share
trading practices in India and found that the main benefit derived out of online
share trading is wider choice followed by better value and source of information.
Results also revealed that inadequate technology is the major problem faced by
online share traders followed by lack of professional management.

Prabakaran (2017): Found that all investors considered other relevant information
relating to the share market before entering the online share trading. The higher
income people make the investment in shares via online trading, because they
know all kinds of information as well as facing their risk.

Dr. Krishna Mohan Vaddai and Dr. Merugu Pratima (2016) examined the attitudes
of online investor’s towards the adoption of online trading in Visakhapatnam city.
A structured questionnaire was used to collect data from 400 investors and the
collected data were first structured into grouped frequency distributors, and
chi-square test was used to test the hypothesis formulated. The study concludes
that stock broking firms in order to enhance widespread use of online trading
service, need to organize relevant short term training programmes and deploy
user-friendly interface to encourage acceptance and quick adoption of online
trading service among diversified class of investors to remove apprehensions and
to form strong positive attitude in the long-ru
CHAPTER 3: RESEARCH OF METHODOLOGY

3.1 ABOUT THE STUDY

The main scope of the study is listed below:

● It gives us information about the scope of opening a demat account with

online services.

● It gives us information about the perception of traders towards online

trading.

● It shows the number of online traders.

● It gives the information regarding the preference and choices of the

different online traders.

● The study also gives information regarding the expansion of online

services for traders in future.

● It gives information about the satisfaction level of online traders.

3.2 RESEARCH OBJECTIVE

● To know the perception of investors towards online trading.

● To study the procedure and benefits of internet share trading .
● To study the awareness and attitude of investors towards online trading.
● To study the service of online share trading .
● To analyze the extent usage of technology based on share trading among
the investors.
3.3 DATA COLLECTION

This study is based on primary and secondary data .

1. PRIMARY DATA: Primary data is collected through a survey method by

asking questions to investors . The Questionnaires were carefully dsign by taking
into account the parameters of my study . A survey was conducted with the
sample size 53 respondent . In questionnaires there were 20 questions in which 2
were close ended and 18 were open ended .

2. SECONDARY DATA: To make primary data collection more specific ,

secondary date will make it more useful. Secondary data is collected from various
books and websites .

3.4 SAMPLE AREA

The survey was conducted in Mumbai.

3.5 SAMPLE SIZE

Random sampling of 53 respondents were taken. In which there were also people
who don't do online trading .

3.6 LIMITATION OF THE STUDY

● While the questionnaire filling process sometimes the clients do not give
positive responses, may be because they are really busy or may be not
interested in filling it.
● Due to more number of questions in questionnaires traders were doing
fluke things.
● The small sample size pertaining to a particular geographical region
cannot be the decisive factor for drawing conclusions about the study.
 CHAPTER 4:

OVERVIEW OF ONLINE TRADING

Online Trading has created a lot of opportunities for new-age traders. If you are
a stock market enthusiast and want to Trade Online then, this can be the best time
to start investing online.

With the advent of the technologies that are used in the trading arena, it is
becoming better day by day for the traders. Online trading is more or less like you
do online shopping.

You just need a few basic things like a bank account, internet connection, and
internet banking facilities. Along with these, last but not the least, a device from
which you can place the order.

It is the same for online trading as well – A Demat account, trading account and
bank account, internet facility and trading platform on your device and you are
sorted.

4.1 Why to do online trading ?

Online trading has a lot of benefits; here are the 7 main benefits:

● It is convenient
● It is cheaper
● You can monitor your investments anytime
● Investor has greater control
● Faster Transactions
● Better understanding of one’s money
4.2 Difference between online and offline trading.

​ Trading:
With an online share trade account the users can place their own
orders. On the other hand, an offline account means that users need
to avail the services of a broker to place orders. Instructions are
specifically given to the brokers in an offline trade, which creates
dependence on the broking agency. Such dependence is
non-existent when you choose to trade through an online account.
​ Convenience:
An online stock trading account is a good option for people who
have an Internet connection and track their orders from the
convenience and comfort of their homes or offices. In case users
are not able to access stock broking sites or do not have access to
an Internet connection, placing orders on the phone with their
brokers is more advisable.
​ Fraud:
Because online share trading provides users complete control over
the transactions, the risk of potential frauds is eliminated. There are
certain instances when the brokers execute trades on behalf of their
clients without receiving permission, which can cause significant
losses to the users who choose offline trading.
​ Expertise and Knowledge:
​ When users opt for an online stock trading account, they may get
carried away. Without doing proper research and understanding
more about how the stock market works, they may buy or sell
shares, which can result in huge losses. This is avoidable with
offline trading because the brokers have several years of
experience and knowledge, which can be beneficial for users as
they receive accurate guidance through the broking service
providers. Fortunately, most of the agencies that offer online
trading services offer access to research reports and other technical
and fundamental analyses to assist account-holders to gain a
 deeper understanding to make the right investment decisions.
​
​

4.3 Advantages of online trading .

The Advantages of Online Trading are:

.It is simple:

It enables a trader to have a hassle free trading experience. Anyone can use these
platforms as specific skill is not required to carry out trading online.

It is less expensive:

It is less expensive as compared to traditional mode of trading. Brokers also

promote online trading as it reduces maintenance and other costs incurred by the
broker.

Quick and less time consuming:

Trading can be done in a seamless manner and in less time. Before the advent of
online technologies, trading was a cumbersome process as you had to visit the
broker or call your broker for placing or cancelling trade orders. Now, you can
carry out trading even through a smartphone in the simplest way.

Complete control:

It allows you to have complete control over your portfolio. You can place trade
orders from anywhere anytime. That is the kind of flexibility you get due to
online trading.

Chances of error are less:

In case of traditional offline trading, there were more chances of errors due to
miscommunication between the traders and brokers. But in online trading, you
can place trade orders or cancel without broker’s interference and hence can
manage trade transactions by yourself.

Monitor investment at all times:

You can monitor investments anytime. There are mobile trading apps that can be
downloaded in your smartphone which help you stay in touch with the markets
and also monitor your investment anytime and take proper strategic moves
accordingly. Loss making stocks can be removed and profit making stocks can be
added to your portfolio by observing the way the market moves.

Access to research reports:

You can get access to top research recommendations, reports, analysis on stock
price based on various charts. There are various brokerage websites through
which you can have discussions with research experts as well. You can take the
best move with the help of financial advisors too.

4.4 DISADVANTAGES OF ONLINE TRADING

The coin has two sides. Just as there are advantages to online trading, there are
also some disadvantages to online trading.

2. TECHNICAL KNOWLEDGE

Since the trading terminal runs on a computer system, those who do not have
knowledge of computer internet have to spend a lot of time learning it.
3. SYSTEM ERROR

Sometimes the website may run slow, the internet may not be up to speed, the
computer may not respond, the server may go down, and the trading terminus
may not be convenient to use.

The mechanism or systems fail due to the less speed of internet connections, it
causes huge loss in trading.

4. NO CONTROL OVER DECISION.

Greed, Fear and Patients are the main factors for stock market success. It is very
difficult to control your emotions at the time of heavy market fluctuations.

lacement they charges 2 or 3 times higher fees for that.

5. LIMITED KNOWLEDGE

● Elimination of a broker could be mean trouble.

● Without proper investment advice could cause big losses.
● In a bull market every decision of yours earns good profit but once the
market changes gears then it's very hard to survive in the stock
market.

4.5 Safety measures that have to be taken in case of online trading:

● Trade orders should not be placed from shared PCs or cyber cafes.
● Always log out after carrying out trade in order to avoid any misuse of
your account.
● Personal computers have to be protected against viruses by installing
anti-virus solutions.
 ● Do not click on the “remember me” option when you sign in to your trading
account from a different location.
Investment in financial assets is offered by several brokers. You can choose that which
suits your needs and demands after comparison of brokers on the basis of services,
brokerage charges, etc. Online trading helps you trade or invest in the most secure way.
It's simple, easy and fast to trade online.
CHAPTER :5
DATA ANALYSIS AND INTERPRETATION

INVESTOR’S QUESTIONNAIRE:-

1. Gender

MALE 81.1%

FEMALE 18.9%

INTERPRETATION:
There were 81.1% of men population whereas females only 18.9%
.Through this survey we came to know that there is a lack of information
among women .
3.AGE

Options 18-25 25-35 35-50 50&above

Response 42 8 2 1

Percentage 79.2% 15.1% 3.8% 1.9%

INTERPRETATION:

In the above diagram there 79.2% people were between 18-25 age groups.
Whereas 15.1% were of 25-35 age , 3.8% people were 35-50 and 1.9% were of
50and above .
4. Occupation of online traders

Options Students Private Public Self

Employee Employee employee

Response 35 14 3 2

Percentage 64.2% 26.4% 5.6% 3.7%

INTERPRETATION:
Through the survey we come to know that there were 64.2% of people who
were students .26.4% were Private Employee , Public Employee were 5.6% and
and only 2% of them were self employed . Through this we came to know that
students are now taking more interest in online trading .
5. Income level of trader .

Options Less than 1lakhs to 3 lakhs to 5 lakhs nill

1 lakh 3 lakhs 5 lakhs and above

Response 18 12 4 1 19

Percentage 34% 22.6% 7.4% 1.9% 34%

INTERPRETATION:
Here , income of 34% of respondents were less than 1lakhs where as 22.6%
respondent’s income was between 1-3 lakhs , between 3 lakhs to 5 lakhs were
selected by 7.4% and 1.9% income was more than 5lakhs and 34% of the
respondents don't earn they might be the students and the money they invested
might be borrowed by parents and friends .
6 .Do you know about online trading?

Options YES NO MAY BE

Response 41 8 5

Percentage 75.9% 14.8% 9.3%

INTERPRETATION:
75.9% respondents selected Yes whereas 14.8% selected No and 9.3%
selected maybe .This shows that there are people who don't do online trading this
might be due to lack of knowledge.
7. Do you have a Demat Account ?

Options YES NO

Response 31 23

Percentage 57.4% 42.6%

INTERPRETATION:
Among the respondents 57.4% of them has Demat account and 42.6% people
were not having demat account
8.Do you make your investments online?

Options ALWAYS NEVER SOMETIMES

Response 17 16 21

Percentage 31.5% 29.6% 38.9%

INTERPRETATION:
31.5% of the respondents have selected Yes that means they are totally involved
in online trading where 29.6% of them have never done E-Trading and 38.9% do
invest online sometimes. This shows that people are trying to see interest in
trading online .
9. How long are you trading online?

Options less than 1 1 - 2 year 2 - 3 year more than 3

year years

Response 39 11 1 1

Percentage 75% 21.2% 1.9% 1.9%

INTERPRETATION:
Here , 75% of the respondents are in the less than 1year category . 21.2% of
them are trading for 1-2 years . online trading for 2-3 years is done by 1.9% of the
respondents and 1.9% of them are doing this form for more than 5years. Through
this we came to know that people are now likely to do online trading .
10. Which stock exchange do you prefer?

Options NATIONAL STOCK BOMBAY STOCK

EXCHANGE EXCHANGE

Response 26 25

Percentage 51% 49%

INTERPRETATION:
Among the respondents 51% of the investors invest in NATIONAL STOCK
EXCHANGE and 49% of the investors invest in BOMBAY STOCK
EXCHANGE.
11. Which part of these modes have you made a major part of your
investment?

Options equity bonds golds mutual others

shares funds

Response 27 1 8 9 7

Percentage 51.9% 1.9% 15.4% 17.3% 13.5%

INTERPRETATION:
Here, 51.9% of the investors prefer equity shares , investing in bonds are made
by 1.9% ,15.4% of the investors prefer investing in gold ,17.3% investments are
made in Mutual funds and 13.5% of them invest in other things .
12. Is there any review system after placing the order?

Options YES NO DON'T KNOW

Response 27 9 16

Percentage 51.9% 17.3% 30.8%

INTERPRETATION:
51.9% of the investors say there is a review system while placing an order
whereas according to 17.3% investors there is no review system. And 30.8% of
them don't know whether there is any review system or not . Changes in the
answer of investors may be because of different platforms used by them.
13. Which means do you get confirmation of trading ?

Options By mail directly by post by brokers email

Response 32 11 7

Percentage 64% 12% 14%

INTERPRETATION:
64% of the investors received confirmation of their trading on their mail, 12%
received it through post and 14% of the investors got it through their brokers
email. This might be due to various platforms .
14. Is cash received immediately after placement of order?

Options received T+ 2 DAYS DON'T KNOW

immediately

Response 11 27 13

Percentage 21.6% 52.9% 25.5%

INTERPRETATION:
According to 21.6% investors they receive cash immediately after the placement
where 52.9% receive cash on T+2 days time period and 25.5% people don't know
the time period.
15. While investing what does an investor see?

Options current status Future estimation others

Response 12 29 10

Percentage 23.5% 56.9% 19.6%

INTERPRETATION:
23.5% of the investors see the current status of the company while investing
.56.9% does future estimation and 19.6% has some other way .
16. Online trading is friendlier as compared to offline trading.

Options AGREE DISAGREE DON'T KNOW

Response 38 7 6

Percentage 74.5% 13.7% 11.8%

INTERPRETATION:
According to 75.5% respondents online is friendlier as compared to offline
trading and 13.7% investors say it is not friendlier and 11.8% respondents says
dont know .This might be because of lack of knowledge.
17. Do you feel secured while trading online?

Options YES NO

Response 44 8

Percentage 84.6% 15.4%

INTERPRETATION:
84.6% respondents feel secure while trading online whereas 15.4% don't feel
secured. Online platforms can work more for such problems .
18. Which factors do you think affect your investment?

Options interest rate economic productivity other

growth of capital

Response 17 23 6 5

Percentage 33.3% 45.1% 11.8% 9.8%

INTERPRETATION:
33.3% say interest rate effects their investment were 45.1% because of economic
growth . 11.8% see productivity of the capital and 9.8% have selected other
option
l
19. Do you think online trading has helped in growth and development of
Indian stock market?

Options YES NO MAY BE

Response 37 2 12

Percentage 72.5% 3.9% 23.5%

INTERPRETATION:
72.5% of the respondents think online trading has helped in growth and
development of Indian stock market and 3.9% say it doesn't help and 23.5%
respondents say maybe it helps in growth.
20. Will you continue your E-trading?

Options YES NO MAY BE

Response 36 6 11

Percentage 67.9% 11.3% 20.8%

INTERPRETATION:
The highest percent i.e 67.9% of respondents say they will continue with online
trading and 11.3% people say they won't do trading online whereas 20.8% have
not decided.
CHAPTER :6 RECOMMENDATION

On the basis of the questionnaires, I humbly propose my recommendation

to carry out further improvement in online trading .

1. Many people don't do this business because of proper market

knowledge . And hence they should be made aware of the trends of
the market .
2. People prefer Online trading as a secondary business , because
liquidity is high in this business. Therefore , some steps should be
taken to explain this scenario to all the knowledge classes by
proper marketing .
3. Trusted brokers get easily online trade because of timeliness and
right tips on trading ; therefore a company should make its brand
name strong enough to convince the consumer for online trading
through more advertisement .
4. Online trading requires fast and effective decision making .
Therefore the company should hold regular seminars , coaching
classes and make its customer aware of the true extent of risk and
return .
5. Try to remove the myth of money losing from stock trading from
the minds of people by providing some help in the decision
making and schemes .
 CHAPTER 7: SUGGESTION AND CONCLUSION

In conclusion, online trading can flourish when certain conditions are in place and
interact with each other positively. Among others, large Internet-using population,
well-established communication infrastructure, the provision of incentives for
online trading, deregulation and favorable market conditions are necessary to
encourage online trading.

The number of investors registered for online stock trading has risen three-fold
over the past two years. However, nearly 30 percent of the sample investors have
not done online internet trading so far. This shows that investors are yet to learn
about the developments taking place in the marketplace. It should be kept in mind
that online trading has both positive and negative effects on the securities market.
It is necessary to address the negative effects. Ignoring the risks involved, one
might be drowned while sailing the ocean.
 REFERENCES

● https://www.businessmanagementideas.com
● https://www.businessmanagementideas.com
● https://fintrakk.com

Articles of :
ANGEL BROKERAGE COMPANY
 ANNEXURE

INVESTOR’S
QUESTIONNAIRES

1. NAME
__________________

2. Gender

❏ Male
❏ Female

3. AGE
❏ 18-25
❏ 25-35
❏ 35-50
❏ 50 and above

4. Occupation of online traders

❏ Students
❏ Private Employee
❏ Public Employee
❏ Self employee

5. Income level of trader .

❏ Less than 1 lakh
❏ 1 lakhs to 3 lakhs
 ❏ 3 lakhs to 5 lakhs
❏ 5 lakhs and above
❏ Nill

6 .Do you know about online trading ?

❏ Yes
❏ No
❏ Maybe

7. Do you have a Demat Account ?

❏ Yes
❏ No

8.Do you make your investments online?

❏ Always
❏ Never
❏ Sometimes

9. How long are you trading online ?

❏ less than 1 year
❏ 1 - 2 year
❏ 2 - 3 year
❏ more than 3 years

10. Which stock exchange do you prefer?

 ❏ NATIONAL STOCK EXCHANGE
❏ BOMBAY STOCK EXCHANGE

11. Which part of these modes have you made a major part of your
investment?
❏ equity shares
❏ Bonds
❏ Golds
❏ mutual fund
❏ Others

12. Is there any review system after placing the order?

❏ Yes
❏ No
❏ Don't know

13. Which means do you get confirmation of trading ?

❏ by mail directly
❏ by post
❏ by brokers email

14. Is cash received immediately after placement of order?

❏ received immediately
❏ T+ 2 DAYS
❏ DON'T KNOW

15. While investing what does an investor see?

 ❏ current status
❏ future estimation
❏ Others

16. Online trading is friendlier as compared to offline trading.

❏ Agree
❏ Disagree
❏ don't know

17. Do you feel secured while trading online?

❏ Yes
❏ No

18. Which factors do you think affect your investment?

❏ interest rate
❏ economic growth
❏ productivity of capital
❏ Other

19. Do you think online trading has helped in growth and development of
Indian stock market?
❏ Yes
❏ No
❏ Maybe
20. Will you continue your E-trading?
❏ Yes
❏ No
❏ maybe