Summer Training Report

On
“Analysis of investor perception and decision making in
Indian stock markets”
Submitted in partial fulfillment of the requirement for the award
of degree of

MASTERS OF BUSINESS ADMINISTRATION

Session 2021-23

Under the supervision of: Submitted by:

Dr. Mohan Thakral Saloni Jaiswal
(Assistant Professor) MBA 2nd Year
University Roll No- 210163478

Panipat Institute of Engineering & Technology,

Samalkha

Affiliated to Kurukshetra University, Kurukshetra

DECLARATION
This is to certify that I “Saloni Jaiswal”student of Panipat Institute of Engineering & Technology
studying in MBA 3rd Semester, Roll No. “210163478” has prepared a project report entitled
“Analysis of investor perception, apprehension and decision making in Indian stock
markets”for the partial fulfillment of degree of Masters of Business Administration from
Kurukshetra University, Kurukshetra.

I hereby declare that the project report submitted to the Kurukshetra University, Kurukshetra is a
record of an original work done by me under the guidance of Dr. Mohan Thakral (Assistant
Professor) .

The matter presented in this project work has not been submitted by me for the award of any
degree or diploma/fellowship from any other institute.

Signature of Candidate Signature Faculty

Saloni Jaiswal Dr. Mohan Thakral
Roll No. -210163478

(Dr. Akhilesh Mishra)

HOD, Department of Management Studies

ACKNOWLEDGEMENT
Gratitude of highest order is expressed to Dr. Akhilesh Mishra (Head, Department of Management
Studies) for encouragement and support during my project. His care, endless support and trust
motivate me for opportunity to achieve. This project could not be completed without his insight
and guidance.

I am highly obliged to Dr. Mohan Thakral(Assistant Professor), my prime internal guide for his
invaluable support; guidance and knowledge that he has shared with me thereby aiding me in
making this project a success along with other employees who provided their utmost working
knowledge, which has broaden my area of interest and benefited mostly in completing the project.

I am highly grateful to my project guide Dr. Mohan Thakral(Assistant Professor) for his
inspiring guidance and blessings for fulfilling the project report. I am very grateful to Dr. Mohan
Thakral (Assistant Professor) for his research advice, knowledge and many insightful discussion
and suggestions.

Lastly I thank faculty and staff members of P.I.E.T, Panipat which gave me an opportunity
regarding training purpose and helped me in building some experience in my career.

Student Name- Saloni Jaiswal

Student Roll No-210163478

TABLE OF CONTENTS
S.No Chapter No. Particulars Page No.
1 A Declaration -
2 B Acknowledgement -
3 C Certificate -
4 Chapter-1 Introduction  
1.1) Introduction to Industry 1-6
1.2) Introduction to Company 7-11
1.3) Introduction to Topic 12-16
5 Chapter-2 Literature Review 17-21
6 Chapter-3 Research Methodology  
3.1) Research Methodology 22
3.2) Conceptualization 22
3.3) Need of the Study 22
3.4) Objective of the Study 27
3.5) Scope of the Study 27
3.6) Research Design 27
3.7) Collection of Data 27
3.8) Techniques used for study 28
3.9) Essence of Ratio Analysis 28
3.10) Limitations of the study 28
7 Chapter-4 Data Analysis and Interpretation  
4.1) Analysis & Interpretations 29-59

8 Chapter-5 Findings , Suggestion & Conclusion  

5.1) Findings of the study 60-62
5.2) Suggestions and Recommendations 63
5.3) Conclusion 63
9 D Bibliography  
10 E Annexure  
 CHAPTER-1
INTRODUCTION
 1.1 INTRODUCTION TO INDUSTRY
During the last decade, the Indian economy has grown at a breakneck pace, with the corporate
sector playing a key role in this development. During this time, India has experienced a substantial
infusion of foreign investment as well as the establishment of Indian multinationals on the global
corporate arena. During the current decade, the capital market and its expansion have played a
significant role in boosting corporate sector growth. With the expansion of the capital market,
certain Indian corporations now have market capitalizations that place them among the top
companies in the world. The minimal engagement of retail investors in the corporate economy, on
the other hand, remains a source of concern. The overall number of retail investors in India has
been estimated to be less than one percentage of the total population. In India households are
rapidly shifting their investments to risk-free, low-yielding fixed-return instruments or non-
financial assets. Households' lack of understanding of financial concepts and products has a direct
impact on their use of the financial markets. Individuals' capacity to fulfil their financial goals and
the efficient distribution of household savings are both influenced by financial literacy. Investors
frequently rely on guesswork or seek advice from friends and family, which are generally poor
approximations when compared to the results of scientific investigation. They are more likely to
make poor decisions, contribute insufficiently, start saving late, avoid contemporary finance, or fall
victim to fraud or mis-selling. The outcomes will be terrible if they receive faulty guidance, and
they will lose faith in the system. Most investors have allowed others to destroy their wealth in the
past. 2 In the financial market, small investors have long played an important role. However, there
is a growing demand for them to play a larger role. Less than 1% of our population invests directly
in the stock market, with the remaining 2–3% investing through mutual funds. Worse, less than 2%
of household savings are invested in the stock market. Every earner has the potential to save,
savers have the potential to invest, and investors should be financially knowledgeable. Wealth
creation for the investor would remain a faraway dream unless the common person becomes a
wiser investor and is safeguarded against wrongdoings. A nation of savers must be transformed
into a nation of investors. Individuals must be empowered in order to make well-informed
judgments. It is a public good to educate people about money. The government, regulators, and
financial services industry must work together to increase financial literacy and give factual
information in easy-to-understand formats.

1
In Indian Financial System it consists of four components like Financial Market, Financial
Institution, Financial Service and Financial Instruments. All are play very important and vital role
for smooth activities for the transfer of funds and allocation of the funds. The main objective of
Indian Financial system is that providing the efficiently services to the capital and money market.
The Indian capital market has been increasing tremendously during the second generation reforms.
The first generation reforms started in 1991 in the concept of LPG (Liberalization, Privatization,
Globalization) Then after 1997 second generation reforms was started still the its going on its
include Reform of industrial investment, reforms of fiscal policy, reforms of ex-imp policy,
Reforms of public sector, reforms of financial sector, reforms of foreign investment through the
institutional investors, reforms banking sectors. The economic development model adopted by our
country India is in the post -independence era has been characterized by mixed economy with the
public sector plays important & dominating role and the activities in private industrial sector
control measures emaciated from time to time. The last two decades have been a phenomenal
expansion in the geographical coverage and the financial spread of our country financial system
The spread of the banking system has been a major factor in promoting financial Intermediation in
the economy and in the growth of financial savings with progressive liberalization of economic
policies, there has been a rapid growth of capital market and financial services industry including
merchant banking, leasing and venture capital, leasing, hire purchasing. Consistent with the growth
of financial sector and second generation reforms its need to fruition of the financial sector. It’s
also need to providing the of view the mutual fund play vital for better service to the small
investors. The main vision for the analysis for this study is to scrutinize the performance of five
star rated mutual funds given the weight of risk, return, and asset under management, net assets
value, book value.

Origin of Equities
Equity, quite simply, means ownership. Equities, therefore, are shares that represent part
ownership of a business enterprise. The idea of share ownership goes back to medieval times. It
became widespread during the Renaissance, when groups of merchants joined to finance trading
expeditions and early bankers took part ownership of businesses to ensure repayment of loans.
These early shareholder-owned enterprises, however, were usually temporary ventures established
for a limited purpose, such as financing a single voyage by a ship, and were dissolved once their
purpose was accomplished.

2
The first shareholder-owned business may have been the Dutch East India Company, which was
founded by Dutch merchants in 1602 and issued negotiable share certificates that were readily
traded in Amsterdam until the company failed almost two centuries later. By the late 17 th century,
traders in London coffee houses earned their living dealing in the shares of joint-stock companies.
But it was not until the industrial revolution made it necessary to raise large amounts of capital to
build factories and canals that share trading become widespread.

The Indian stock market traces its history back to the late 18th century when the trading floor was
under the shade of a sprawling banyan tree opposite the Town Hall in Mumbai. A few people
would meet under this tree to informally trade in cotton. This was because Mumbai was a busy
trading port, and essential commodities were traded here often. The Companies Act was
introduced in 1850, following which investors started showing an interest in corporate securities.
The concept of limited liability also put an appearance around this time significant increase in the
number of mutual funds, schemes, assets, and shareholders. In the US, the mutual fund industry
registered a ten – fold growth the eighties. Since 1996, mutual fund assets have exceeded bank
deposits. The mutual fund industry and the banking industry virtually rival each other in size.

By 1875, an organization is known as ‘The Native Share and Stock Brokers Association’ came into
being. This was the predecessor of the BSE. In 1894, the Ahmedabad Stock Exchange came
primarily to enable dealing in the shares of textile mills in the city. The Calcutta Stock Exchange
was formed in 1908 to facilitate a market for shares of plantations and jute mills. It was in 1920
that the Madras Stock Exchange took shape. In 1957, the BSE was the first stock exchange to be
recognized by the Government of India under the Securities Contracts Regulation Act. The
SENSEX was launched in 1986, followed by the BSE National Index in 1989. The Securities and
Exchange Board of India (SEBI) was constituted in 1988 to monitor and regulate the securities
industry and stock exchanges. In 1992 it became an autonomous body with completely
independent powers. In 1992, the NSE was formed as the first demutualized electronic exchange to
ensure market transparency. NSE began operations in the Wholesale Debt Market (WDM)
segment in 1994, the equities segment in 1994, and the derivatives segment in 2000. In 1995, the
BSE switched to an electronic trading system from the open-floor system. In 2015, SEBI was
merged with the Forward Markets Commission (FMC) to strengthen commodities market
regulation, facilitate domestic and foreign institutional participation, and launch new products.

3
History of Stock Exchange
The trading in securities in India was started in the early of 1973. The stock exchange operating in
the 19th century was those of Bombay set up in 1875 and Ahmedabad set up in 1894. These were
organized as voluntary non-profit making associations of brokers to regulate and protect their
interests. Before the control on securities trading becomes a control on securities trading became a
central subject under the constitution in 1950. It was a state subject and the Bombay securities
contact (control) act, 1925 used to regulate trading in securities. Under this act, Bombay stock
exchange was securities in 1927 and Ahmedabad stock exchange in 1927 and Ahmedabad stock
exchange in 1937. During the war boom, a number of stock exchanges were organized at Bombay,
Ahmedabad and other centers but they were not recognized. Soon after it became a central subject,
central legislation was proposed and a committee headed by Mr. A.D. GORWALA went into bill
for securities regulation. On the basis of securities regulation, Securities Contract (control) Act
became law in 1956. At present there are 23 recognized stock exchanges in India. Number of
Investors is increasing day by day.

The stock exchange is a double auction market. Quite distinct from the common market in which
only one seller and many buyers in a stock exchange a number of potential buyers and potential
sellers co-exist all competing both among themselves and with one another in making bids,
counter-bids, offers and counter-offers.

How does it work?

Mostly, a stock exchange in India works independently as no ‘market makers’ or ‘specialists’ are

present in them. The entire process of trading in stock exchange in India is order-driven and is
conducted over an electronic limit order book. In such a set-up, orders are automatically matched
with the help of the trading computer. It functions to match investors’ market orders with the most
suitable limit orders. The major benefit of such an order-driven market is that it facilitates
transparency in transactions by displaying all market orders publicly. Brokers play a vital role in
the trading system of the stock exchange market, as all orders are placed through them. Both

4
institutional investors and retail customers can avail the benefits associated with direct market
access or DMA. By using the trading terminals provided by stock exchange market brokers,
investors can place their orders directly into the trading system.

NATIONAL STOCK EXCHANGE

ORIGIN

The National Stock Exchange of India was promoted by leading financial institutions at the behest
of the Government of India, and was incorporated in November 1992 as a tax-paying company. In
April 1993, it was recognized as a stock exchange under the Securities Contracts (Regulation) Act,
1956. NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994.
The Capital Market (Equities) segment of the NSE commenced operations in November 1994 and
Derivatives in June 2000. It was set up as a first step in reforming the securities market through
improved technology and introduction of best practices in management. It started with the concept
of an independent governing body without any broker representation thus ensuring that the
operators' interests were not allowed to dominate the governance of the exchange. It is the largest
stock exchange in India and the third largest in the world in terms of volume of transactions. NSE
is mutually-owned by a set of leading financial institutions, banks, insurance companies and other
financial intermediaries in India but its ownership and management operate as separate entities. As
of 2006, the NSE VSAT terminals, 2799 in total, cover more than 1500 cities across India. In July
2007, the NSE had a total market capitalization of 42, 74,509 crore INR making it the second-
largest stock market in South Asia in terms of market-capitalization

Before the NSE was set up, trading on the stock exchanges in India used to take place through
open outcry without use of information technology for immediate matching or recording of trades.
This was time consuming and inefficient. The practice of physical trading imposed limits on
trading volumes and, hence, the speed with which new information was incorporated into prices.
To obviate this, the NSE introduced screen-based trading system (SBTS) where a member can
punch into the computer the quantities of shares and the prices at which he wants to transact. The
transaction is executed as soon as the quote punched by a trading member finds a matching sale or
buy quote from counterparty. SBTS electronically matches the buyer and seller in an order-driven
system or finds the customer the best price available in a quote-driven system, and, hence, cuts
5
down on time, cost and risk of error, as well as on the chances of fraud. SBTS enables distant
participants to trade with each other, improving the liquidity of the markets. The high speed with
which trades are executed and the large number of participants who can trade simultaneously
allows faster incorporation of price sensitive information into prevailing prices. This increases the
informational efficiency of markets. With SBTS, it becomes possible for market participants to see
the full market, which helps to make the market more transparent, leading to increased investor
confidence. The NSE started nation-wide SBTS, which have provided a completely transparent
trading mechanism. Regional exchanges lost a lot of business to NSE, forcing them to introduce
SBTS. Today, India can boast that almost 100% trading take place through electronic order
matching.

Prior to the setting up of NSE, trading on stock exchanges in India took place without the use of
information technology for immediate matching or recording of trades. The practice of physical
trading imposed limits on trading volumes as well as the speed with which the new information
was incorporated into prices. The unscrupulous operators used this information asymmetry to
manipulate the market. The information asymmetry helped brokers to perpetrate a manipulative
practice known as "gala". Gala is a practice of extracting highest price of the day for "buy"
transaction irrespective of the actual price at which the purchase was actually done and give lowest
price of the day for "sell" transactions irrespective of the price at which sale was made. The clients
did not have any method of verifying the actual price. The electronic and now fully online trading
introduced by the NSE has made such manipulation difficult. It has also improved liquidity and
made the entire operation more transparent and efficient.

INNOVATIONS

NSE has remained in the forefront of modernization of India's capital and financial markets, and its
pioneering efforts include:

1. Being the first national, anonymous, electronic limit order book (LOB) exchange to trade
securities in India. Since the success of the NSE, existent market and new market structures
have followed the "NSE" model.
2. Setting up the first clearing corporation "National Securities Clearing Corporation Ltd." in
India. NSCCL was a landmark in providing innovation on all spot equity market (and later,
derivatives market) trades in India.

6
 3. Co-promoting and setting up of National Securities Depository Limited, first depository in
India.
4. Setting up of S&P CNX Nifty.
5. NSE pioneered commencement of Internet Trading in February 2000, which led to the wide
popularization of the NSE in the broker community.
6. Being the first exchange that, in 1996, proposed exchange traded derivatives, particularly
on an equity index, in India. After four years of policy and regulatory debate and
formulation, the NSE was permitted to start trading equity derivatives three days after the
BSE.
7. Being the first exchange to trade ETFs (exchange traded funds) in India.
8. NSE has also launched the NSE-CNBC-TV18 media centre in association with CNBC-
TV18, a leading business news channel in India.
MARKETS

Currently, NSE has the following major segments of the capital market. This include:

 Equity
 Futures and Options
 Retail Debt Market
 Wholesale Debt Market
NSE Group

 National Securities Clearing Corporation Ltd. (NSCCL)

It is a wholly owned subsidiary, which was incorporated in August 1995 and commenced clearing
operations in April 1996. It was formed to build confidence in clearing and settlement of securities,
to promote and maintain the short and consistent settlement cycles, to provide a counter-party risk
guarantee and to operate a tight risk containment system.

 NSE IT Ltd.
It is also a wholly owned subsidiary of NSE and is its IT arm. This arm of the NSE is uniquely
positioned to provide products, services and solutions for the securities industry. NSE.IT primarily
focus on in the area of trading, broker front-end and back-office, clearing and settlement, web-
based, insurance, etc. Along with this, it also provides consultancy and implementation services in

7
Data Warehousing, Business Continuity Plans, Site Maintenance and Backups, Stratus Mainframe
Facility Management, Real Time Market Analysis & Financial News.

 India Index Services & Products Ltd. (IISL)

It is a joint venture between NSE and CRISIL Ltd. to provide a variety of indices and index related
services and products for the Indian Capital markets. It was set up in May 1998. IISL has a
consulting and licensing agreement with the Standard and Poor's (S&P), world's leading provider
of investable equity indices, for co-branding equity indices.

 National Securities Depository Ltd. (NSDL)

NSE joined hands with IDBI and UTI to promote dematerialization of securities. This step was
taken to solve problems related to trading in physical securities. It commenced operations in
November 1996.

 DotEx International Limited

DotEx was formed to provide a well structured inter trading platform for the members to further
offer online trading facilities to their customers. With this facility, the members can serve a larger
clientele with the use of automated risk management features and hence increase the volume. The
investors also get comprehensive and updated information through it.

 INDICES
NSE also set up as index services firm known as India Index Services & Products Limited (IISL)
and has launched several stock indices, including:

1. S&P CNX Nifty

2. CNX Nifty Junior
3. CNX 100 (= S&P CNX Nifty + CNX Nifty Junior)
4. S&P CNX 500 (= CNX 100 + 400 major players across 72 industries)

5. CNX Midcap (introduced on 18 July 2005 replacing CNX Midcap 200)

BOMBAY STOCK EXCHANGE

8
The Stock Exchange, Mumbai, popularly known as "BSE" was established in 1875 as "The Native
Share and Stock Brokers Association". It is located at Dalal Street, Mumbai. It is the oldest one in
Asia, even older than the Tokyo Stock Exchange, which was established in 1878. It is a voluntary
non-profit making Association of Persons (AOP) and is currently engaged in the process of
converting itself into demutualized and corporate entity. It has evolved over the years into its
present status as the premier Stock Exchange in the country. It is the first Stock Exchange in the
Country to have obtained permanent recognition in 1956 from the Govt. of India under the
Securities Contracts (Regulation) Act, 1956. There are around 4,800 Indian companies listed with
the stock exchange, and has a significant trading volume. As of May 2007, the equity market
capitalization of the companies listed on the BSE was about Rs. 40.7 trillion (US $ 999 billion).
The BSE SENSEX (SENSITIVE INDEX), also called the "BSE 30", is a widely used market
index in India and Asia. As of 2005, it is among the five biggest stock exchanges in the world in
terms of transactions volume.

In the past and even now, it plays a pivotal role in the development of the country's capital market.
This is recognized worldwide and its index, SENSEX, is also tracked worldwide. Earlier it was an
Association of Persons (AOP), but now it is a demutualized and corporatized entity incorporated
under the provisions of the Companies Act, 1956, pursuant to the BSE (Corporatization and
Demutualization) Scheme, 2005 notified by the Securities and Exchange Board of India (SEBI).

The Exchange, while providing an efficient and transparent market for trading in securities, debt
and derivatives upholds the interests of the investors and ensures redressal of their grievances
whether against the companies or its own member-brokers. It also strives to educate and enlighten
the investors by conducting investor education programmes and making available to them
necessary informative inputs.

A Governing Board having 20 directors is the apex body, which decides the policies and regulates
the affairs of the Exchange. The Governing Board consists of 9 elected directors, who are from the
broking community (one third of them retire ever year by rotation), three SEBI nominees, six
public representatives and an Executive Director & Chief Executive Officer and a Chief Operating
Officer.
9
The Executive Director as the Chief Executive Officer is responsible for the day-to-day
administration of the Exchange and he is assisted by the Chief Operating Officer and other Heads
of Departments.

The Exchange has inserted new Rule No.126 A in its Rules, Bye-laws & Regulations pertaining to
constitution of the Executive Committee of the Exchange. Accordingly, an Executive Committee,
consisting of three elected directors, three SEBI nominees or public representatives, Executive
Director & CEO and Chief Operating Officer has been constituted. The Committee considers
judicial & quasi matters in which the Governing Board has powers as an Appellate Authority,
matters regarding annulment of transactions, admission, continuance and suspension of member-
brokers, declaration of a member-broker as defaulter, norms, procedures and other matters relating
to arbitration, fees, deposits, margins and other monies payable by the member brokers to the
Exchange, etc.

BSE INDICES

The BSE SENSEX (also known as the BSE 30 index) is a value-weighted index composed of
thirty scrips, with the base April 1979 = 100. The set of companies which make up the index has
been changed only a few times in the last twenty years. These companies account for around one-
fifth of the market capitalization of the BSE.

Apart from BSE SENSEX, which is the most popular stock index in India, BSE uses other stock
indices as well which are:

1. BSE Sensex
2. BSE 100 Index
3. BSE 200 Index
4. BSE 500 Index
5. BSE MIDCAP Index
6. BSE SMLCAP Index
7. BSE TECH Index
8. BSE PSU Index
9. BSE AUTO Index
10. BSE BANKEX
11. BSE CG Index
10
 12. BSE CD Index
13. BSE FMCG Index
14. BSE HC Index
15. BSE IT Index
16. BSE Metal Index
17. BSE Oil & Gas Index
BSE Vision

The vision of the Bombay Stock Exchange is to "Emerge as the premier Indian stock exchange by
establishing global benchmarks."

BSE Management

Bombay Stock Exchange is managed professionally by Board of Directors. It comprises of eminent

professionals, representatives of Trading Members and the Managing Director. The Board is an
inclusive one and is shaped to benefit from the market intermediaries participation.

The Board exercises complete control and formulates larger policy issues. The day-to-day
operations of BSE are managed by the Managing Director and its school of professionals as a
management team.

BSE NETWORK

The Exchange reaches physically to 417 cities and towns in the country. The framework of it has
been designed to safeguard market integrity and to operate with transparency. It provides an
efficient market for the trading in equity, debt instruments and derivatives. Its online trading
system, popularly known as BOLT, is a proprietory system and it is BS 7799-2-2002 certified. The
BOLT network was expanded, nationwide, in 1997. The surveillance and clearing & settlement
functions of the Exchange are ISO 9001:2000 certified.

BSE's International Convention Hall

The Bombay Stock Exchange provides convention hall for listed companies and other Institutions
to hold their Annual/ordinary General Meetings, Listing ceremonies, Analyst and any other
important event.

11
It is centrally located at which can be easily reached from Churchgate or CST (VT) railway
stations. It has a capacity of around 700 to 900 persons with state-of-the-art infrastructure. The hall
has Projection Equipment, Web-cast facility and a Business Room with Facsimile, Internet,
Photocopier and telecom equipment.

LIST OF VARIOUS STOCK EXCHANGES IN INDIA

S. Years of Type of organization

Name of stock exchange
No. establishment

1 Bombay Stock exchange 1875 Voluntary Non-profit organization

2 Ahmedabad Stock 1897 Voluntary Non-profit organization

exchange

3 Calcutta Stock exchange 1908 Public limited company

4 M.P. Stock exchange, 1930 Voluntary Non-profit organization

Indore

5 Madras Stock exchange 1937 Co. limited by guarantee

6 Hyderabad Stock 1943 Co. limited by guarantee

exchange

7 Delhi Stock exchange 1947 Public limited company

12
8 Bangalore Stock exchange 1957 Pvt. converted into public ltd. co.

9 Cochin stock exchange 1978 Public limited company

10 U.P. Stock exchange, 1982 Public limited company

Kanpur

11 Pune Stock exchange 1982 Co. limited by guarantee

12 Ludhiana Stock exchange 1983 Public limited company

13 Jaipur Stock exchange 1983 Public limited company

14 Guahati Stock exchange 1984 Public limited company

15 Kannaar Stock exchange 1985 Public limited company

16 Magadh Stock exchange 1986 Co. limited by guarantee

17 Bhuvneshwar Stock 1989 Co. limited by guarantee

exchange

18 Saurashtra stock 1989 Co. limited by guarantee

exchange, Kutch.

19 Vadora Stock exchange 1990 N.D.

20 Meerut Stock exchange 1991 N.D.

21 O.T.C.I. 1993 Pure demutualized

13
 (Over the counter

exchange of India),

Mumbai

22 National Stock exchange 1995 Pure demutualized

23 Coimbatore stock 1996 N.D.

exchange

24 Sikkim Stock exchange 1997 N.D.

1.2 INTRODUCTION TO COMPANY

Nature of Business: Service Provider

Additional Business: Finance courses 

CEO: Sanjay Goel
Year of Establishment: 2010
Legal Status of Firm: Limited Company (Ltd./Pvt.Ltd.)
Annual Turnover: Rs. 50 - 100 Crore
14
Equigenius Services Ltd. is a broking house which is running successfully since 2010 in the
country. It offers a wide range of equity related services including trade execution on BSE, NSE,
Derivatives, Depository services, online trading, investment advice etc.

Equigenius Services is run by team of qualified and experienced professionals who are more than
willing to leverage their professional experience of working with financial companies. The experts
of Equigenius Services have experience in the industry from more than 3+ years with prominent
mastery in the field of finance.
Company's motive is to provide personalized, independent and objective & practical learning while
providing the highest level of services to every learner. Equigenius provide best Equity research
and Financial Modelling, Stock market & Technical analysis courses, and make their students
proud in the careers. It offers a broad range of financial products and services including securities
brokerage, mutual fund distribution, loan against shares, ESOP financing, IPO financing and
wealth management. The company has used some of the best known names in the IT-industry like
Sunmicrosystems, oracle, mircosoft, Cambridge Technologies, Nexgenix Vignette, Verisign
Financial Technologies, Spider software Pvt. Ltd. to build its trading engines and content. The
company opened an office in Karol Bagh, New Delhi in October 2012, the Company is
transitioning into a new-age FinTech platform capable of enabling millennials from new age India
to meet their financial dreams.

Products and Services

 Broking Services.
 Investment Advisory.
 Margin Trading Facility.
 Loan against Shares.
 Distribution of Third-Party Financial Products.
 Investor Education.

OFFERINGS

Equities Commodities Loan Against Shares Currency

15
Equity Derivatives Investor Education Research Services Investment
Advisory

1.3 INTRODUCTION TO TOPIC

What is investment

An investment is an asset or item acquired with the goal of generating income or appreciation.
Appreciation refers to an increase in the value of an asset over time. When an individual purchases
a good as an investment, the intent is not to consume the good but rather to use it in the future to
create wealth. An investment always concerns the outlay of some asset today—time, money, or
effort—in hopes of a greater payoff in the future than what was originally put in.

For example, an investor may purchase a monetary asset now with the idea that the asset will
provide income in the future or will later be sold at a higher price for a profit.

The main question arises that why people invest their money in any asset like mutual fund or

Any other item the reasons are

1. A Diversified Portfolio:

Mutual funds invest in two main asset classes -- debt and equity. Some funds are pure debt, and
some invest in just equity; others are balanced or hybrid. The primary benefit of investing in a
mutual fund is that you get exposure to a variety of shares or fixed income instruments. For
instance, if you wanted to invest Rs. 1,000 directly in stocks, you would probably get only a share
or two. If, on the other hand, you invested through a mutual fund, you would get a basket of
several stocks for the same amount.

16
If a few securities in a portfolio don’t perform, the others compensate. In this way, mutual funds
ensure diversification. If you are a lay investor who doesn’t want to spend a lot of time researching
stocks, go for mutual funds.

2. There is a Fund for Everyone:

This could be one of the significant benefits of mutual funds. There are over 2,000 currently active
schemes -- a lot to choose from. You can find funds that match your risk appetite, investment
horizons, and personal financial goals. Debt funds are the least risky, balanced or hybrid funds are
moderately risky, and equity funds involve the highest risk. However, the reward is directly
proportional to risk. Higher the risk, higher the returns. Even within these broad categories, there
are many choices. For example, a large-cap equity fund will be less volatile and offer lower but
stable returns. Mid-cap or small-cap equity funds, on the other hand, can fluctuate wildly but have
the potential to give higher returns in the longer term. And when it comes to debt funds, a fund that
invests in corporate paper will offer higher returns than a gilt fund but will carry higher risk

3. Benefit from High Liquidity:

If you invest in open-ended mutual funds (which most funds are), you can buy and sell your units
at any time. Your total redeemable or buyable value is based on the fund’s net asset value (NAV)
for that day .Close-ended funds too can be liquid. Even though they’re for a fixed duration, close-
ended funds are listed on an exchange after the New Fund Offer (NFO) closes. Once these funds
are listed on a stock exchange, they are freely bought and sold .So, whether you buy open-ended or
close-ended funds, there’s always a high level of liquidity .Do note that some Mutual Funds like
Tax Savings Funds (ELSS) come with a lock-in period of 3 years

4. Invest in a Lumpsum or through a SIP:

One of the advantages of mutual funds is flexibility. You can either make a lump sum investment
or put in small amounts over some time through a SIP (Systematic Investment Plan). Lumpsum
investment works well if you have idle cash. We recommend investing through SIP because you

17
can invest relatively lesser amounts (than lumpsum). Also, because of rupee cost averaging, the
cost of acquiring mutual fund units can be lower. We’ve spoken at length about SIP basics in our
earlier article.

5. You can Invest in Small Amounts:

You can begin a SIP with as little as ₹500 a month. The advantage here is that you don’t have to
wait for a while until you accumulate enough cash to make investments. Therefore, you will be
able to make optimum use of available cash and maximize returns.

6. Cost-Efficient:

Investing through mutual funds is quite cost-efficient. When you buy equity directly, you have to
pay costs like brokerage and Securities Transaction Tax (STT). The larger the number of
transactions, the higher your costs will be. Mutual funds have the benefit overlay investors in that
they do bulk transactions and are hence able to enjoy economies of scale. They may, for example,
be able to get lower brokerage rates, which benefits investors in mutual funds. A debt fund may be
able to negotiate higher interest rates from debt issuers since they deal in large quantities.

7. Reduce your Tax Liability:

Finally, one of the benefits of mutual funds is you can save income tax. If you invest in an ELSS
fund, you can reduce your taxable income by as much as Rs 1.5 lakh under Section 80C of the
Income Tax Act - 1961.Digi bank offers Mutual Funds that are instant, paperless, signature less –
even transaction fearless! What’s more? You get to choose from 250+ Mutual Funds across 15 top-
performing asset management companies. So why wait? Login to Digi bank (app or internet
banking) and start investing in a flash with instant Mutual Funds on Digi bank. .Factors that affect
investor perception in any investment are:

Following are the factor which affects the investor’s perception:

Income
18
Your income is an important determinant of gauging your risk tolerance. If your income is high
enough, you will not mind taking higher risks while taking investment decisions and vice-versa.
This is because small setbacks in your portfolio will not affect your ability and capability to
invest .Expenses .Your outgoings also influence the risk which you can afford to take while
investing. Thus although you may be having a high income, but your disposable income is petite
you could be refrained from taking high risk. Hence it is imperative for you to streamline
unnecessary expenses, so as to keep your financial health in pink.

Age

Investors risk appetite generally declines with age. This is primarily because as the invest o
matures in age and reaches retirement, he psychologically cannot tolerate high volatility in his
portfolio. Any dips in his investment value will lead to erosion of his retirement corpus. On the
other hand, a young investor can comparatively take higher risks as he has a larger number of
working years In-depth Study of Investor’s Perception towards Various Investment Alternatives.
before he retires. He has ample amount of time and opportunities to recover from any possible
backs in the value of his portfolio

Your past experience:

If you have a good experience about any product in the past, you tend to become more
comfortable with repetitive buying. If you have earned success in beating champs in derbies you
wouldn't mind betting even on dark horses. Same goes true in case of investments. Those who
have earned substantially high returns previously would have a heart to take more risk.

Knowledge

This is one those rare assets which may never lose their value. A thorough knowledge about
something increases your awareness. Becoming aware about good and bad effects completely
would push your risk appetite up. In primitive stage of development, man knew little about fire and
was as apprehensive to it as any other animal. However, once he become aware about possible
positive changes that fire may bring to his life; he started using it to his benefit.

Service Quality

19
 Even in the case of goods that exhibit numerous flaws, excellent service quality can often
overshadow a negative experience with the product itself. If a consumer feels that he receives
exceptional attention when encountering a problem with a product, that consumer is somewhat
more likely to trust the brand or product knowing that the manufacturer or retailer provides a
prompt and effective response to problems. Humans are social animals and their consumer
behavior is often determined by the social relationships that surround a product, including
interactions with customer service representatives.

Brand

A brand is a set of marketing and communication methods that help to distinguish a company from
competitors and create a lasting impression in the minds of customers.

Attitudes

The perceiver’s attitudes affect perception. For example, suppose Mr. X is interview in candidates
for a very important position in his organization – a position that requires negotiating contracts
with suppliers, most of whom are male. Mr X may feel that women are not capable of holding their
own in tough negotiations. This attitude will doubtless affect his perceptions of the female
candidates he interviews.

Moods

Moods can have a strong influence on the way we perceive someone. We think differently when
we are happy than we do when we are depressed. In addition, we remember information that is
consistent with our mood state better than information that is inconsistent with our mood state.
When in a positive mood, we form more positive impressions of others. When in a negative mood,
we tend to evaluate others unfavorably

Motives

Unsatisfied needs or motives stimulate individuals and may exert a strong influence on their
perceptions. For example, in an organizational context, a boss who is insecure perceives a sub
ordinate’s efforts to do an outstanding job as a threat to his or her own position. Personal in

20
security can be translated into the perception that others are out to "get my job", regardless of the
intention of the subordinates.

Interest

The focus of our attention appears to be influenced by our interests. Because our individual
interests differ considerably, what one person notices in a situation can differ from what other
perceive. For example, the supervisor who has just been reprimanded by his boss for coming late is
more likely to notice his colleagues coming late tomorrow than he did last week. If you are
preoccupied with a personal problem, you may find it hard to be attentive in class.

Cognitive Structure

Cognitive structure, an individual’s pattern of thinking, also affects perception. Some people have
a tendency to perceive physical traits, such as height, weight, and appearance, more readily.

Others

tend to focus more on central traits, or personality dispositions. Cognitive complexity allows a
person to perceive multiple characteristics of another person rather than attending to just a few
traits.

Expectations

Finally, expectations can distort your perceptions in that you will see what you expect to see. The
research findings of the study conducted by Sheldon S Zalkind and Timothy W Costello on some
specific characteristics of the perceiver reveal

Knowing oneself makes it easier to see others accurately.

One’s own characteristics affect the characteristics one is likely to see in others.

 People who accept themselves are more likely to be able to see favorable aspects of other
people.
 Accuracy in perceiving others is not a single skill.

These four characteristics greatly influence how a person perceives others in the environmental
situation.

21
Habit

Habits die hard and therefore individuals perceive objects, situations and conditions differently
according to their habits. A Hindu will bow and do Namaskar when he sees a temple while
walking on road, because of his well-established habit. These are several instances in life settings
where individuals tend to react with the right response to the wrong signals. Thus a retired soldier
may throw himself on the ground when he hears a sudden burst of car tyre.

Learning

The state of learning influences and plays a crucial role in the perception process. However, it
should be recognized that the role of learning is more pronounced in respect of complex forms of
perception where the symbolic content creeps into the process. Although interrelated with
motivation and personality, learning may play the single biggest role in developing perceptual set.

Economic and social background

The employee perceptions are based on economic and social backgrounds. Socially and
economically developed employees have a more positive attitude towards development rather than
less developed employees.

22
CHAPTER-2
LITERATURE
REVIEW
 LITERATURE REVIEW

Muhammad Sadiq (2019)

Research has been conducted to know the impact of corporate governance and investor confidence
on the corporate investment decisions and identified that there is a significant impact of investor
confidence on corporate investment decisions in both countries and also the investment level is
higher in the firms with good corporate governance practices.

M.Jaya (2017)

Research Scholar found that return on investment, tax benefits and liquidity are the major reasons
for the investment in stock markets. To avoid risk investors are adopted a strategy by not investing
in the risk area and followed portfolio investment.

N.S.V.N Raju (2016)

Research Scholar conducted a study to identify the factors influencing investors attitude towards
investment and found that top five highly influential factors according to the investors’ were what
the company does ,valuation of the company's Stock , company's annual reports , Price to earnings
ratio, Is the company profitable.

U.Raghavendra Prasad (2016)

indentified that investors are bullish in nature. Rate of return, capital appreciation and safety of
investment are the major motives for investment.

Awais M (2016)

Research Scholar conducted a research to know the factors which influence the investors decision
making process and found that high knowledge about financial information and its analysis
improves the investors risk taking capacity.

Sangeeta Jauhari (2015)

Research Scholar identified that investor’s pattern of investment mainly depends on the age,
educational level and source of income and investment alternatives available in the stock market.
Ashok Kumar (2014)

Research Scholar suggested that majority of investors preferred to invest in Fixed deposit with
banks followed by gold, units of UTI, fixed deposit of non-government companies, mutual funds,
equity shares and debenture for safety and liquidity.

D. Harikanth and B. Pragathi (2013),

Research Scholar found that Risks taking capacity and educational qualification of investors are
the factors which affects the selection of investments.

Gnani Dharmaja (2012)

Research Scholar found that financial literacy, investor’s financial tolerance and accounting
information are influencing the investor’s behavior.

D. Harikanth and B. Pragathi (2013)

Research Scholar found that Risks taking capacity and educational qualification of investors are
the factors which affects the selection of investments.

Sarita (2011)

Research Scholar found that the irrespective of educational qualification, job, age, income level
investor would like to protect their future by taking an insurance policy.

Shanmnga Sundaram V (2011)

Research Scholar examined the impact of behavioural dimensions of investors in Capital market
and found that investor decisions are influenced by psychological factors as well as behavioural
dimensions and this psychological effect is created by the fear of losing money, sudden decline in
stock indices, greed and lack of confidence about their decision making capability.

Lovric M. et al., (2008)

Research Scholar presented a description model of individual investor behaviour in which

investment decisions are seen as an iterative process of interactions between the investor and the
investment environment.The investment process was influenced by a number of interdependent
variables. They suggested that this conceptual model can be used to build stylized representations
of individual investors and further studied using the paradigm of agent-based artificial financial
markets

Szyska Adam (2008)

Research Scholar analysed how investors’ psychology changes the vision of financial markets and
discussed the consequences of the new view of finance by capital market practitioners-investors,
corporate policy makers and concluded with some thoughts on the future development of the
capital market theory.

Hvidkjaer S (2008)

Research Scholar have assessed that portfolio execution has pulled in a lot of interest in shared
assets in the scholastic world. An assortment of valuation procedures have been proposed to
actualize the capacity of a proficient portfolio supervisor to create odd returns. In this overview
they found negative execution or no exhibition for the normal common asset

Martin P. also, McCann B. (2008)

Research Scholar analysed the relationship between retail investor trading behaviour and the cross
section of future stock returns. The result suggests that stocks favoured by retail investors
subsequently experience prolonged underperformance relative to stock out of favour with them.
This results link the systematic component of retail investor behaviour to future returns, i.e.,
informed investors might begin selling stocks that they believe to be overvalued. The
overvaluation that these investors perceived could be driven by changes in firms fundamental
values.

Mittal M. and Vyas R.K. (2008)

Research Scholar explored the relationship between various demographic factors and the
investment personality exhibited by the investors. Empirical evidence suggested that factors such
as income, education and marital status affect an individual’s investment decision. Further the
results revealed that investors in India can be classified into four dominant investment personalities
namely casual, technical, informed and cautions.
Singh (2006)

Research Scholar analyzed that investment decisions making done by the majority of investor
based on the recommendation done by the professionals and financial advisors. Muttapan (2006),
concluded that the factors influencing to invest in mutual fund are tax exemption.

N.Piyatrapoomi (2004)

Research Scholar Political, social, environmental and economic factors are included in decision-
making frameworks but incomplete information of these factors become risk and uncertainty in
decision-making.

Bhardwaj (2003)

Research Scholar has stated the literature on globalization; He found the pervasiveness of the
west’s perception of the world affect on Indian investors that affects the trends in investor’s choice.
They are hugely affected by the west’s views and so changes in Indian trends occur.

Rajarajan V (1998, 2000 and 2003)

Research Scholar classified investors on the basis of their demographics. He found the investors'
characteristics on the basis of their investment size and the percentage of risky assets to total
financial investments had declined as the investor moves up through various stages in life cycle.
Further, he noted investors' lifestyles based characteristics..

Sujit and Amrit (1996)

Research Scholar stated that the main factor influenced the salaried and business class group to
invest in mutual fund were tax benefit.
 CHAPTER-3
RESEARCH
METHODOLOGY
3.1 Research Methodology

Research Methodology is a scientific and systematic problem-solving method. It involves

choosing a variety of methods and techniques, mostly from the studies carried out.

For the first part of the analysis the return on funds, I took five different types of funds
from similar fund companies, comparing the return for six months, three years and
five years.

The second part of the analysis, the risk profile.

Comparisons are made using bar graphs, so conclusions can be drawn after analyzing
these graphs.

3.2 Conceptualization

When it comes to investing in India, consumers are only given two options: fixed deposits
or gold. According to several surveys, just 2.5 percent of the country's 1.3 billion people
are aware of investment possibilities other than the typical fixed deposit or gold, meaning
that investment options are only available to those who live in metro areas. This study
aims to find out how much people know and understand about different investing
possibilities, as well as their attitudes on stock market investment. This study will help us
establish how well-informed a person is about the many investment options available in
India, as well as the various factors that influence a person's decision to invest their
money. The significance and relevance of this study is that it will reveal how people
invest and save money in order to maximise their profits. This study will reveal the factors
that people evaluate while making investing decisions. This study will also look at those
who have only been working for 1-2 years to see how they feel about investing and what
degree of knowledge they have.

3.3 Need Of The Study

Stock market investments for small investors because they offer the opportunity to invest
in relatively low-cost, diverse and professionally managed investments. The recent trend
in the stock market is the active expansion of foreign investment fund companies and the
reduction of state-owned banks and small private companies.

The growth and development of various investment fund products in Indian capital
markets has proven to be one of the most catalytic tools to promote capital market growth.

3.4 Objective of the Study

 To understand the investors’perception towards investment.

 To identify the factors influencing investment in stock market.

 To know the level of awareness of various investment avenues.

3.5 Scope of the study

The survey was conducted over a six week period, the main focus of which was to study
the Indian Stock Market. As different companies appear on the same theme in the same
season, it is essential to constantly improve business performance to survive the
competition and provide the largest capital appreciation.

3.6 Research Design

Analysis of Investors perception in an area that has received lot of attention of both

researchers and practitioners. Several measures of performance evaluation are generally used.

Some are related to one another and some others are not related to one another. The selection

of the respondents was done on the basis of convenience sampling as the universe under the

coverage area of the study was too large.

3.7 Collection of Data

For collecting the information I will used different methods to collect the data and
information some of them are-

Essential information: -
Primary information will be gathered through survey/plan – one for respondents
(General individuals and another for government authorities, Block Development
Officials and heads of others offices) Not with standing this individual meetings
will be additionally be led to get top to bottom information and data.

Questionnaires and surveys

Online platform (Google form and other)

3.8 Techniques used for Study

Sampling Area- Delhi NCR

Chart Type Used for Analyze the study : Pie Chart And Bar graph.

Time of the Study- As on 2022

Sample Size- 150 respondents

Sampling Method- Convenience Sampling Methods

3.9 Essence Of Ratio Analysis

 Analysis of Financial Statements

 Helps in understanding the profitability and financial position of the company
 Liquidity of the firms.
 To compare the performance of the firms
 Helps in identifying the financial rules of the company
3.10 Limitations of the Study
Though every care has been taken to make this report authentic in every sense, yet there were

a few uncomfortable factors, which might have their influence on the final report. Linking

factors can be stated as: -

 Time Constraint :- Due to lack of time it was not possible to deeply study every

aspect of stock markets and devote enough time for research work. But still sincere

efforts were put to reach to the reliable conclusion.

 Data Collection Constraints :- There were many problems regarding the

collection of data which are as follows:

 Primary Data Constraints :-

 As the questionnaires were filled during the working hours, the respondents

had little time to devote for filling the questionnaires.

 Some respondents didn’t have their serious attitude towards the questionnaire

and hence their responses may not reflect the real picture.

 Some of the respondents were not candid enough to reveal all the required

information. They might have given inflated or wrong data.

 Secondary Data Constraints :- It was tried very harder to include the best of

information from published and unpublished sources available on internet, books

and magazines but some of the data required for the detailed study was not

available freely
 CHAPTER-4
DATA ANALYSIS &
INTERPRETATION

26
 Data Analysis And Interpretation

Question no 1: Gender

Particulars No of respondents Percentage

Male 108 72%
Female 42 28%
Total 150 100%

Analysis:

As per the above table it is clear that while 72% of respondents are Males, 28% of respondents
are Females.

Gender

28%

Males

72%
Females

Graph no 1: Graph is showing no of respondents who is invest in mutual funds

Interpretation:

72 % of the respondents are Males and 28 % are Females. This shows that financial literacy is
more among males.

29
Question no 2: Classification of respondents on the basis of age

Particulars No of respondents Percentage

Below 20 years 12 8
21 to 30 years 54 36
31 to 40 years 42 28
41 to 50 years 18 12
50 to 60 years 18 12
Above 60 years 6 4
Total 150 100

Analysis:

As per the above table 8% of the respondents are below 20 years, 36% respondents are 21 to 30
years, 28% are 31 to 40 years, 12% are 41 to 50 years, 12% are 50 to 60 years and 4% are above
60 years.

Age

4% 8%
12%
Below 20
years
12% 21 to 30
36% years
31 to 40
years
28% 41 to 50
years
50 to 60
years

Interpretation:

From the above graph, it can be interpreted that 8% of the respondents belongs to the age
categories of below 20 years. Most of the respondents belong to the age categories of 21 to 30
years(36%) and 31 to 40 years(28%). 12% of respondents belong to the age categories of 41 to
50 & 50 to 60. 4% of the respondents belong to the age categories above 60 years.

30
Question no 3: Classification of respondents on the basis of occupation

Occupation No of respondents Percentage

Business 24 16
Student 54 36
Professional 27 18
Employee 30 20
Retired 15 10
Total 150 100

Analysis:

As per the above table, it is analyzed that 16% of the respondents are of business occupation,
36% of the respondents are of students, 18% of the respondents are of professional, 20% of the
respondents are employees, 10% of the respondents are retired.

Occupation

10% 16%
20% Business
Student
36% Professional
18%
Employee
Retired

Interpretation:
Students constitute a major share (36%) of the respondents.20% of the respondents are
employees.18% of the respondents belong to professional sector.16% of the respondents belong to
business sector.10% of the respondents are retired individuals

31
Question no 4: Classification of respondents on the basis of monthly

Monthly Income No of investors Percentage

Less than 20000 60 40
20000-40000 42 28
40000-80000 15 10
Greater than 80000 33 22
Total 150 100

Analysis:

As per the above table, 40% of the respondents earn less than 20000, 28% of the respondents
earns between 20000-40000, 10% of the respondents earn between 40000-80000, and 22% of
the respondents earns more than 80000.

Monthly Income

22%
Below 20000
40%
20000-40000
10%
40000-80000
Greater than
28% 80000

Interpretation:

40% of the respondents have income below 20000, 28% of the respondents monthly income is
between 20000 and 40000. Respondents who have monthly income between 40000 and 80000
form 10% and 22% of the employees have monthly income greater than 80000

32
Question no 5: How often do you trade in stock market?

FREQUENCY No of respondents Percentage

Daily 45 30
27.75 18.5
Once a week

Once a month 12 8
Depends 65.25 43.5
Total 150 100

Analysis:

As per the above table, it is analyzed that 100% of the respondents are those who invest in
equity market.

Frequency

30%
44% Daily

Once a week

19% Once a month

8%
Depends

Interpretation:

The study revealed that 30% of the respondents traded daily, 18.5% traded once a week, 8% traded
once a month and 43.5% traded depending upon the market availability and availability of funds.
Thus, most people trade in tandem to markets and availability of funds.

Question no 6: If you want to invest, which investment option would you feel provides the
33
best returns?

Investment Options No of respondents Percentage

Equity Shares 63 42
IPO 27 18
Mutual Fund 33 22
Bonds 12 8
Fixed Deposits 9 6
Debentures 6 4
Total 150 100

Analysis:

As per the above table it can be analyzed that 42% of the respondents invest in equity, 18% of
the respondents invest in IPO, 22% of the respondents invest in Mutual Funds, 8% of the
respondents invest in Bonds, 6% of the respondents invest in Fixed deposits, 4% of the
respondents invest in debentures.

Invesment Options

6% 4%
8% Equity Shares
42%
IPO
22% Mutual Fund
Bonds
18% Fixed Deposits
Debentures

34
Question no. 7: Which factor motivates you to invest in Equity Market?

Factors No of investors Percentage

Return 90 60
Liquidity 18 12
Safety 3 2
Capital Appreciation 36 24
Other 3 2
Total 150 100

Analysis:

As per the above table, it can be analyzed that return motivates 60% of the investors, liquidity
motivates 12%, Safety Motivates 2%, Capital Appreciation motivates 24%, other factors
motivates 2% of the investors to invest in market.

Invesment Options

2%
24%
Return
Liquidity
2%
60% Safety
12%
Capital Appre-
ciation
Other

Interpretation:

More than half (60%) of the respondents says that it is the return that motivates them to invest in
equity market. 24% respondents say that Capital appreciation is the motivating factor behind
investing in equity market. Only 12% of respondents that liquidity is the motivating factor.

35
Question no 8: What percentage of your income would you invest in Equity Market?

Percentage of income No of respondents Percentage

Less than 5 % 15 10
5 % - 10 % 27 18
10 % - 15 % 33 22
15 % - 20 % 33 22
20 % - 25 % 21 14
More than 25 % 21 14
Total 150 100

Analysis:

As per the above table it is analyzed 10% of the respondents spend less than 15% of their
income, 18% spent 5%-10% pf their income, 22% spent 10-15% of their income,14% spent
20%-25% of their income, 14% of the respondents spent more than 25% of their income to
invest in equity market.

Percentage of income

14% 10%
Less than 5 %
14% 18%
5 % - 10 %
10 % - 15 %
22% 22% 15 % - 20 %
20 % - 25 %
More than 25 %

Interpretation:

When it comes to the percentage of income that the respondents would invest in Equity market.
44% respondents would spend in between 10% to 20% of their income in equity market. 28% of
the respondents are ready to spend more than 20% of their income in equity markets. 28% of the
respondents spend in between 5-10% of their income in equity markets and 10% respondents are
ready to invest only less 5% of the income in equity markets.

36
Question no 9: How do you trade in Equity Market?

Trading strategy No of respondents Percentage

Intraday 33 22
Delivery 78 52
Speculation 27 18
Arbitragers 3 2
Hedging 9 6
Total 150 100

Analysis:

As per the above table, it can be analyzed that 22% of the respondents do intraday trading, 52%
do delivery, 18% do speculation, 2% do arbitragers, & 6% do Hedging in equity market.

Percentage of income

2%6% 22%
18% Intraday
Delivery
Speculation
52% Arbitragers
Hedging

Interpretation:

Half of the respondents are long term investors who takes delivery of shares .22% of respondent
are invested in day trading and 18% of the respondents are interested in speculation. 6% of the
respondents are investing for the purpose of investing and only 2% are arbitrageurs

37
Question no 10: What is the time horizon for investing in Equity Market?

Time horizon No of respondents Percentage

Less than 1 month 24 16
1 – 3 months 54 36
3 – 6 months 12 8
6 – 12 months 18 12
More than 12 months 42 28
Total 150 100

Analysis: As per the above table, it is analyzed that 16% of the respondents invest for less than
1 month, 36% of the respondents invest for 1-3 months, 8% of the respondents invest for 3-6
months, 12% of the respondents invest for 6-12 months, and 28% of the respondents invest for
more than 12 months.

Time Horizon
More than 12 months 28%

6 – 12 months 12%

3 – 6 months 8%

1 – 3 months 36%

Less than 1 month 16%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Interpretation:

One third of the respondents (36%) invest in equity market for a period of 1-3 months. Another
major portion (28%) of the respondents are long term investors who wishes to invest for more than
12 months . 16% of the respondents are short term investors. 8% of respondents wishes to invest
for a period of 3-6 months and 12% of investors Invest for a period of 6-12 months.

38
Question no 11: What is the rate of return expected by you from Equity Market in a year?

Rate of return No of respondents Percentage

5% - 10% 6 4
10% - 15% 30 20
15% - 20% 69 46
20% - 25% 21 14
25% - 30% 9 6
30% above 15 10
Total 150 100
Analysis:

As per the above table, it is analyzed that 4% of the respondents expect 5%-10% return, 20% of
the respondents expect 10%-15% return, 46% of the respondents expect 15%-20% return, 14%
of the respondents expect 20-25% return, 6% of the respondents expect 25%-30% of the return,
and 10% of the respondents expect above 30% return.

Rate of return
30% above 10%

25% - 30% 6%

20% - 25% 14%

15% - 20% 46%

10% - 15% 20%

5% - 10% 4%

Interpretation:

From the above graph, it can be interpreted that the majority of the respondents expect 15-20%
return. As such, investments use economic indicators to adjust their views on economic growth
and profitability. Improved economic conditions will make investors more optimistic about the
future and increase the likelihood of investing in hopes of a positive return.

39
Question no 12: Are you satisfied with the current performance of the Equity Market in
terms of expected return?

Satisfaction level No of respondents Percentage

Fully Satisfied 36 24
Satisfied 69 46
Neutral 39 26
Unsatisfied 6 4
Total 150 100

Analysis:
As per the above table it is analyzed that 24% of the respondents are fully satisfied, 46% of the
respondents are satisfied, 26% of the respondents are neutral, and 4% of the respondents are
unsatisfied with the current performance of the equity market in terms of expected return.

Satisfaction level

4%
24%
26% Fully Satisfied
Satisfied
Neutral
46%
Unsatisfied

Interpretation:

70% of the respondents are satisfied with the current performance of equity market in terms of
return whereas 26% of the respondents have a neutral Opinion. Only 4% of respondents are
unsatisfied with cu.

40
Question no 13: Who influenced you to enter into Equity Market?

Influencers No of respondents Percentage

Friends 69 46
Relative 9 6
Advisers 21 14
Media 21 14
Research Report 21 14
Magazines 9 6
Total 150 100

Analysis:
As per the above table it is analyzed that 46% of the respondents are influenced by friends, 6%
of the respondents are influenced by relative, 14% of the respondents are influenced by
advisers, 14% of the respondents are influenced by media, 14% of the respondents are
influenced by research reports, and 6% of the respondents are influenced by magazines to enter
into stock market.

Influencers
6%
14%
Friends
46% Relative
14% Advisers
Media
14% Research Report
6%
Magazines

Interpretation:

46% of respondents were influenced by friends, 6% were influenced by relatives, advisers, media
and research report influenced 14% of the respondents to enter into equity market . 6% of the
respondents were influenced by magazines

41
Question no 14: Which factor do you consider is most important while selecting the sectors?

Factors No of respondents Percentage

Market Trend 45 30
Profitability 60 40
Economic Condition 24 16
Industry Condition 12 8
Government Policy 9 6
Total 150 100

Analysis:
As per the above table it is analyzed that 30% of the respondents consider market trend, 40% of
the respondents consider profitability, 16% of the respondents consider economic condition, 8%
of the respondents consider industry condition, 6% of the respondents consider government
policy as most important factor while selecting sectors.

Factors
15% Market Trend

Profitability
15% Economic Con-
49%
dition

Industry Condition
15%
Government Policy
6%

Interpretation:

30% of the investors look for market trend while Selecting sectors for investing .40% of the
investors look for profitability, 16% look for economic condition and 8% think about industry
condition while selecting sectors. 6% of the to investors look for government policy for choosing
sectors to invest.

42
Question no. 15: Rank the following sectors based on your preference for investment?

Classification of respondents on the basis of ranks given to various sectors based on their
preference for investment (in numbers)

Sectors 1st 2nd 3rd 4th 5th Total

Oil and Gas sector 27 21 30 24 48 150

Infrastructure sector 18 57 36 27 12 150
Banking sector 51 33 42 18 6 150
Automobile sector 18 45 39 39 9 150
IT sector 48 45 21 21 15 150

Interpretation:

Rankings of sectors based on respondents preference

Sector Rank

IT sector 1st

Banking sector 2nd

Infrastructure sector 3rd

Automobile sector 4th

Oil and Gas sector 5th

Oil & Gas sector:

18% of the respondents gave first rank, 14% gave second rank, 20% gave fourth rank and 32%
gave fifth rank. Overall, we can say that respondents have given fifth Preference to oil and gas
sector when compared with other sectors.

Infrastructure Sector:
12% respondents gave first rank, 38% gave second rank, 24% gave third rank ,18% gave fourth
rank and 8% gave Fifth rank. Overall We can say that respondents have given 3rd preference to
infrastructure sector when compared to other sectors.

43
Banking Sector:
34% respondents gave first rank, 22% gave second rank, 28% gave third rank, 12% gave fourth
rank and 4% gave fifth rank. Overall we can say that respondents have given second preference to
banking sector when compared to other sectors.

Automobile Sector:
12 % respondents gave first rank,30% gave second rank 26% gave third rank, 26% gave fourth
rank and 6% gave fifth rank. Overall we can say that respondents have given fourth preference to
automobile sector when compared to other sectors.

IT Sector:
32% respondents gave first rank, 30% gave second rank, 14% gave third rank, 14% gave fourth
rank and 10% gave fifth rank. Overall we can say that respondents have given first preference to IT
Sector when compared to other sectors.

44
Question no. 16: Rank the most important factor selecting a company of your choice?

Classification of respondents on the basis of ranks given to various factors that affect their
investment decision(in numbers)

Sectors 1st 2nd 3rd 4th 5th Total

Earnings per Share 39 36 24 24 27 150

Dividend 30 45 33 27 15 150
Market Capitalization 33 48 42 12 15 150
Performance of Company 54 45 24 18 9 150
PE Ratio 24 30 36 30 30 150

Interpretation:

Rankings of sectors based on respondents preference

Sector Rank

Earnings per Share 1st

Dividend 2nd
Market Capitalization 3rd
Performance of 4th
Company
PE Ratio 5th

Earnings Per Share:

26% of the respondents gave first rank, 24% gave second rank, 16% gave third rank, 16% gave
fourth rank and 18%gave fifth rank. Overall, the respondents have given third Preference to this
factor when compared other factors.

Dividend:

20% of the respondents gave first rank ,30% gave second rank, 22% gave third rank, 18% gave
fourth rank and 10% gave fifth rank. Overall, the respondents have given second preference to
Dividend when compared to other factors.

45
Market Capitalization:

22% of the respondents gave first rank, 32% gave second rank ,28%gave s third rank, 8% gave
fourth rank and 10% gave fifth rank. Overall the respondents have given second preference to
market capitalization when compared to other factors.

Performance of the company:

36% respondents gave first rank, 30% gave second rank, 16% gave third rank, 12% gave fourth
rank and 6% gave fifth rank. Overall, the respondents have given first preference to the
performance of company when compared to other factors.

PE Ratio:

16% respondents gave first rank, 20% gave second rank, 24% gave third rank, 20% gave fourth
rank and 20% gave fifth rank. Overall, the respondents have given fourth preference to the PE
Ratio when compared to other factors.

46
 CHAPTER-5
FINDINGS,
SUGGESTIONS &
CONCLUSION
 5.1Findings

1) 72% of the respondents are Males and 28% are Females.

2) 36% of the participants are from the age group of 21-30 years.
3) In respect of occupation of participants in this survey, 36 % of the participants are from
students and around 38% are from Direct Employees of companies & service industries.
4) With regards to monthly income of the participants, 40% of the participants are having
monthly income below 20000 Rs , 28% of the participants are having income between Rs
20000-Rs 40000.
5) 100% of the participants are preferred to invest in equity market over non equity instruments.
6) In respect of preferred investment options, 42% of the participants preferred to invest in equity
shares, 22% in through mutual funds and 18% through IPO.
7) The major factors motivated to invest in equity market are:

 60% of the participants based on Returns

 24% of the participants based on Capital Appreciation

 12% of the participants based on Liquidity

8) In respect of what percentage of income one would invest in equity market, 44% respondents
would spend between 10% to % in equity market and 28 % of the respondents are spending
more than 20% of their income is in equity market.
9) With regard to trading strategy 52% preferred to invest on Delivery(cash) basis, 22% preferred
to invest through intraday and 18% through speculation.
10) Most of the respondents preferred their investment to keep for a short term duration. 36% of
the respondents preferred to keep their time horizon for investment below 1- 3months, 16%
preferred to keep investment less than 1 month, only 28% of respondents preferred the time
horizon for investment for more than 12 months.
11) Most of the respondents expected a return of 15% to 20% from equity market, 46% of
respondents expected a returns of 15%-20% from equity market. 20% of the respondents
expected a return between 10%-15%.
12) In respect of satisfaction with the current performance of equity market, 46% of the
respondents were Satisfied, 24% of the respondents were Fully satisfied and 26% were Netural.
13) With regard to basis of influencers who influence them to enter into the equity market, 46% of
the respondents influenced through Friends, 14% influenced through Media, 14% influenced
48
 through Advisers, 14% influenced through Research Reports.
14) Regarding the basis of factors that they consider most important while selecting the sectors to
invest, 40% of the respondents were based on Profitablity, 30% of the respondents were based
on Market trends and 16% of the respondents were based on Economic conditions.
15) In terms of sectoral preference for investment most of the respondents preferred IT sector
followed by Banking sector , Infrastructure sector, Automobile sector and Oil & Gas.
16) In respect of factors that affect the investment decision of respondents Earnings Per Share
(EPS) stood first followed by Dividend, Market Capitalization, Performance of company and
PE Ratio respectively.

49
 5.2 Suggestions:

1) Investors should prefer long term investment that provides maximum return with
minimum risk. •
2) Portfolio of investment should be selected by the investors.
3) Reliable information about the investment Avenues should be given to the investors
frequently.
4) In order to improve financial literacy webinars, seminars, advertisements should be
done for the betterment of society.
5) Financial literacy should be given to everyone without any discrimination.
6) Investors should always allocate their capital in a diversified manner and should not put
their capital in one asset.
7) Investor protection should be taken seriously by the govt. authority.
8) Investors should always invest after research and making consultation with experts.

50
 5.3Conclusion:

According to the survey, the majority of people participate in the stock market for the high returns
and to hedge their risk by investing a large portion of their income in the stock market. The
majority of people here speculate in the stock market and invest for one to three months. In
general, investors that invest for a long time, say more than a year, benefit greatly from the equities
market. Most investors are encouraged to invest in the stock market by their friends and the media,
and they expect more from the stock market. The majority of investors prefer the IT sector for their
investments because of the market trend, profitability, industry condition, and economic condition.
Investors also consider Price Earnings Ratio, Earnings per Share, and Dividend as the most
important factors when selecting a company within these selected sectors. As a result, the majority
of investors are delighted with the equity market.

51
BIBLIOGRAPHY
 Reference:

 Annaert, J., Ceuster, D., Marc, J.K., and Hyfte, W.V., (2005). The value of asset

allocation advice: Evidence from the Economist’s quarterly portfolio poll. Journal of Banking
andFinance 29, pp. 661–680.

 Gerela. S. T. and Balsara. K. A, Risk Management and Margin System at the BSE, The

Economic Times, Investors Year Book (2000-01) P.51.

 Hvidkjaer S (2008), Small Trades and the Cross-section of Stock Returns, The Review of

Financial Studies, Vol. 21, No.3, pp. 1123-1151.

 Lovric M, Kaymak U and Spronk J (2008), A Conceptual Model of Investor Behaviour,

Erasmus Research Institute of Management (ERIM), Report series Researchin Management,

Vol7, No1, pp. 30-45.

 Mittal M and Vyas R.K, (2008), Personality Type and Investment Choice. An empirical

study, The Icfai University Journal of Behavioural Finance, Vol. V, No.3, pp. 6-22.

 Rajagopala Nair and Elsamma Joseph, Risk Management in Monthly, Vol. Corporate

Securities,Tlle Mailngeii~eiltAcco~ci~taiit, 34, No. 10, October 1999, p.737.

 Rajarajan.V (1998) Stages in Life Cycle and Investment Pattern, The Indian Journal

ofCommerce, Vol.51, No. 2 & 3, April-September 1998, pp.27-36.

 Rajarajan.V (2000), Investors’ Lifestyles and Investment Characteristics, Finance

India,Vol. XIV, No. 2, June 2000, pp.465-478.

 Rajarajan.V (2003), Investors’ Demographics and Risk Bearing Capacity, Finance

India,Vol. XVII, No. 2, June 2003, pp.565-576.

 Shanmngasundaram V, The impact of behavioural bias of investors in Capital market,

South Asia Journal of Socio Political Studies, SAJOSPS, Vol.10,No1,pp.99-102

 Szyszka Adam (2008), From the Efficient Market Hypothesis to Behavioural Finance-

How Investors Psychology changes the vision of Financial Markets, The Icfai Journal of
Finance, Vol.2, No.1, pp.68-76.

 Muhammad Sadiq et,al,(2019), “Does corporate governance play any role in investor

confidence,corporate investment decisions relationship? Evidence from Pakistan and India”

Journal of Economics and Business 105,105839.

 M. Jaya & C.S. K. ,(2017),Malarvizhi Sensitivity Of The Investor’s Towards Stock

Market Investment. International Journal of Marketing & Financial Management, ISSN: 2348
–3954 (online) ISSN:2349 –2546 (print), Volume 5, pp 37–pp 43.

 Awais M, Laber F,et.al. (2016),Impact of Financial Literacy and Investment Experience

on RiskTolerance and Investment Decisions: Empirical Evidence from Pakistan, International

Journal of Economics and Financial, vol.6. pp. 73- 79
 N.S.V.N Raju & Anita Patra.,(2016), “A Study on Investor’s Attitude towards investment

in Equity stocks with reference to East Godavari, West Godavari & Vijayawada Districts of
Andhra Pradesh”International Journal of Control Theory and Applications (IJCTA) Volume
9,Issue 41, ISSN0974- 5572.

 U.Raghavendra Prasad,(2016), “ A Study On Investors’ Perception And Attitude

Towards Investment InIndian Stock Market With Special Reference To Chittoor District”, Asia
Pacific Journal ofResearch, Vol: I. Issue XLII, August .

 Sangeeta Jauhari, Deepti Maheshwari,H.S. Yadav,KavitaIndapurkar

(2015) ,“Perception of Investors inStock Market: A Case Study of Bhopal Region”, Research
on Humanities and Social SciencesISSN (Paper)2224-5766 ISSN (Online)2225-0484 (Online)
Vol.5, No.13.

 Ashok Kumar (2014), suggested that majority of investors preferred to invest in Fixed

deposit with banks followed by gold, units of UTI, fixed deposit of non-government
companies, mutual funds, equity shares and debenture for safety and liquidity

 D.Harikanth and B.Pargathi,(2013), “Role of Behavioural Finances in Investment

Decisions Making,”International Journal of Multidiciplinary and Academic Research, Vol. 1,

Issue 4, pp. 1-23.
Website:
 http://www.moneyplantservices.com
 http://www.moneycontrol.com/mutual-funds

 http://www.bseindia.com

 http://www.amfiindia.com
ANNEXURE
 Questionnaire:

I Saloni Jaiswal, a student of Department Of Management Studies at Panipat Institute Of

Engineering & Technology Panipat.

As a part of my course curriculum, I am doing a project and conducting a study on “Analysis of

investor perception and decision making in Indian stock markets”.

I would be grateful if you would kindly co-operate and fill the questionnaire.

I am assure you that information provided by you will purely for academic purpose and
would be kept confidential.

Name…………………….

1. Gender

 Male

 Female

2. Age

 Below 20years

 21 to 30years

 31 to 40years

 41 to 50years
  50 to 60years

 Above 60years

3. Occupation

 Business

 Student

 Professional

 Employee

 Retired

4. Monthly Income

 Less than 20000

 20000-40000

 40000-80000
  Greater than 80000

5. How often do you trade in stock market?

 Daily

 Once a week

 Once a month

 Depends

6.
returns?
If you want to invest, which investment option would you feel provides the best

 Equity Shares

 IPO

 Mutual Fund

 Bonds
  Fixed Deposits

 Debentures

7. Which factor motivates you to invest in Equity Market?

 Return

 Liquidity

 Safety

 Capital Appreciation

 Other

8. What percentage of your income would you invest in Equity Market?

 Less than 5 %

 5 % - 10 %

 10 % - 15 %
 15 % - 20 %

20 % - 25 %

More than 25 %

9.How do you trade in Equity Market?

Intraday

Delivery

Speculation

Arbitragers

 Hedging

10. What is the time horizon for investing in Equity Market?

Less than 1 month

1 – 3 months
 3 – 6 months

 6 – 12 months

More than 12 months

11. What is the rate of return expected by you from Equity Market in a year?

5% - 10%

10% - 15%

15% - 20%

20% - 25%

25% - 30%

30% above
12. Are you satisfied with the current performance of the Equity Market in
terms of expected return?

 Fully Satisfied

 Satisfied

 Neutral

 Unsatisfied

13. Who influenced you to enter into Equity Market?

 Friends

 Relative

 Advisers

 Media

 Research Report

 Magazines
14. Which factor do you consider is most important while selecting the sectors?

Market Trend

 Profitability

 Economic Condition

Industry Condition

Government Policy

15. Rank the following sectors based on your preference for investment?

Oil and Gas sector

Infrastructure sector

Banking sector

Automobile sector

IT sector
16. Rank the most important factor selecting a company of your choice?

Earnings per Share

Dividend

Market Capitalization

Performance of Company

PE Ratio