This action might not be possible to undo. Are you sure you want to continue?
JAMNAGAR SUBMITTED BY GUSAI CHETANGIRI RAMESHGIRI MBA SEM – IV GUIDED BY Prof. RAJESH FALDU
2005 – 2007 SUBMITTED TO JAYSUKHLAL VADHAR INSTITUTE OF MANAGEMENT STUDIES (JVIMS) BIPIN T. VADHAR COLLEGE OF MANAGEMENT JAMNAGAR AFFILIATED TO SAURASHTRA UNIVERSITY RAJKOT
I undersigned GUSAI CHETANGIRI RAMESHGIRI student of M.B.A.-IV semester declare that I have prepared this report on “Study of investment pattern of an investor towards various investment alternatives available before him” at Angel Stock Broking LTD. Jamnagar under the guidance of Prof. Rajesh Faldu of JVIMS. I also declare that this project report is my own preparation and not copied from anywhere else.
(Signature) ___________ GUSAI CHETANGIRI RAMESHGIRII Roll No.: 23
It gives me a great pleasure to write about this stock broking firm which is especially prepared with the aim to make the learning process complete with the practical knowledge. I had visited Angel Stock Broking Ltd., at Jamnagar. The project has covered the main points which I felt necessary and also given by firm. So, from this project one can get a raw idea of this stock-broking firm. I have also conducted a research on, “Study of investment pattern of an investor towards various investment alternatives available before him.” I have try to find out the preference of an investor amongst the various investment avenues and also the manner in which he invest his money in that avenue.
I hope this project will also receive its generous support and kind arrangements
Rajesh Faldu and Mr. I also pay special thanks to the employees who have helped me in providing the knowledge regarding Angel Stock Broking. CHETANGIRI GUSAI 4 . Jwalant Shingala (Branch Manager). at Jamnagar and the project work has taken the help of many known and unknown faces who have directly or indirectly guided me & help me.ACKNOWLEDGEMENT My visit at Angel Stock Broking Ltd. I take this opportunity to express my sincere thanks to Prof. Yours truly. at Angel Stock Broking Ltd. who had played a very important role in the completion of this project..
Page No. Particulars 6
Executive Summary 7 Introduction (a) Company Details (b) Industry Details (c) Regulatory Environment Details (d) Competitors Detail 8 31 42 47 62 63 65
3. 4. 5.
6. 7. 8. 9.
Problem Formulation Research Objectives Research Methodology a) Research Design b) Data collection Method c) Sampling Method d) Data Analysis Findings Limitation of the study Conclusions Appendixes : a ) Questionnaire b) List of Charts c) Glossary d) Bibliography Bibliography
87 89 90 93
I have taken training Angel Stock Broking LTD. As per my view it is working efficiently. It is speedily going to take first place among the private players. I have done organizational study and also conducted a Research Survey on “Study Pattern of an investor towards various investment alternatives available before him.” Every department of Angel is working very efficiently. Angel Stock Broking LTD. is having a good financial & promoter background. The main strength of lies in its Research Team comprising of famous Research Analysts in Technical and Fundamental.
In my Research on “Study Pattern of an investor towards various investment alternatives available before him.” In my research I have found out that Nowadays the mind set of Indian investor has also changed towards stock market. Earlier the Indian investor was of the belief that investing in stock market was risky but nowadays the scenario has changed and more and more number of persons are investing their money in it.
Indian stock market has been growing by lips & bounce. It is one of the favorite areas of investment amongst many investors. The investors find it much attractive in terms of making money and good investment destinations. Various stock broking firms are available in the market to provide services to the investor and help him in carry out the transaction in the starting from giving advice in buying particular script / security till the purchase and sale of the script / security. Angel stock broking is one of those firms available in the market. It assists such investors who are willing to invest in the stock market and assist them in every activity relating to the stock market. The scenario of Indian stock market has been changed drastically recently compare to what it used to be in past. Now it has become much more systematized through the use of latest technology and new improved soft wares. Due to these latest technology and soft wares only trading activities in stock market has become much systematic compare to what it used to be in the past.
I have conducted a Research on “Study Pattern of an investor towards various investment alternatives available before him.”
COMPANY DETAILS 8 .
who started this business as a subbroker in 1987 with a team of 3. The group is promoted by Mr. Dinesh Thakkar. Angel Broking is also registered as a Depository Participant with CDSL. The mainline business activities of Angel are: • • • • • • • Stock Broking Derivatives Trading Internet Trading Wholesale debt market operations Depository services NSDL and CDSL IPO Distribution Commodities Trading 9 .ABOUT ANGEL In a shot span of 18 years since inception. having membership of BSE. Today the angel group is managed by a team of 1600+ direct employees and has a nation wide network comprising of 12 Regional hubs. NCDEX & MCX.8lac retail clients.e. The group currently services more than 1. 59 branches and 2200+ sub brokers & business associates. NSE and the two leading Commodity Exchanges in the country i. the Angel Group has emerged as one of the top five retail stock broking houses in India.
7. Indraprashta Building.361001 FORM OF ORGANISATION: Private Sector PROMOTER: Dinesh Thakkar ACCOUNTING YEAR: 1ST April to 31st March 10 . REGISTERED OFFICE: G-1. Office 228-229 Pancheshwar Tower Road. MIDC Marol. Jamnagar. Akruti Trade Centre. Andheri (E). 2nd Floor. Mumbai – 400 093 BRANCH OFFICE: ANGEL STOCK BROKING LTD. Road No.COMPANY’S PROFILE NAME OF THE COMPANY: ANGEL STOCK BROKING LTD.
VISION To provide best value for money to investors through: Innovative products Trading / investment strategies State of the art technology Personalized service 11 .
• • • Strict adherence to compliance norms.STRENGTHS OF ANGEL • • Understanding the needs of a channel partner and retail investor very well. derivative strategist and commodity analysts 12 . 50 member research / advisory team comprising of experienced fundamental and technical analysis. Timely research based advice to their clients. Deriving inspiration from their vision of providing the best value for money to their clients. Ethical business practices. sector specialties.
QUALITY ASSURANCE POLICY Angel is committed to being the leader in providing World Class Products & Services which exceed the expectations of our customers achieved by teamwork and a process of continuous improvement. 13 .
BUSINESS PHILOSOPHY Ethical Practices & transparency in all their dealings Customer Interest above all Always deliver what we promise Effective cost management 14 .
Wealth Preservation 15 .” Angel’s investment philosophy is based on two key attributes: 1.INVESTMENT PHILOSOPHY “Given the client’s risk profile. Wealth Creation 2. maximize performance by adhering to disciplined investment approach backed by quality research.
OBJECTIVE OF ANGEL INVESTMENT PHILOSOPHY Angel’s objective at all time is to protect and then grow your portfolio. Angel’s investment philosophy is outlined by in-depth focus on a disciplined long term investment approach in potential multi-baggers. which would result in out-performing the market along with wealth creation. The 3 important tenets that we look for in any stock are: • • • Consistent. steady & sustainable returns Margin of safety Low volatility 16 . The primary aim is to avoid the thoughts of the declining market and not necessarily out-perform the rapidly rising market but to consolidate both the periods.
” 17 . He is doing us a favour by giving us an opportunity to do so. We are not doing him a favour by serving.CRM (Customer Relationship Management) Policy Angel CRM policy is as follows: “A customer is the most important visitor on our premises. He is not an interruption in our work but is the purpose of it. He is not dependent on us but we are dependent on him.
ORGANISATION CHART ANGEL STOCK BROKING LTD. NATIONAL BRANCH GENERAL MANAGER HEAD RETAIL SALES MANAGER ZONAL MANAGER REGIONAL MANAGER BRANCH MANAGER RELATIONSHIP MANAGER Chart .1 18 .
SWOT ANALYSIS STRENGTH: • • WEAKNESS: • High Employee Turnover. Marketing at rural and semi-urban areas. THREATS: • • Increasing number of local players. OPPORTUNITY: • • To get into the segment of such investors who are less risky. Good Image and strong back ground. Past image of Stock market MANAGEMENT TEAM 19 . Strong Communication Network.
Names 1 2 3 Mr.Sr. Rajen Shah Mr. Research 20 . Phani Sekhar Designation Chairman & Managing Director Chief Investment Officer Senior Research Analyst SERVICES PROVIDED 1. Dinesh Thakkar Mr. E Broking: Multiple exchanges on single screen Intra-day calls & flash news Historical charts with technical tools 2. No.
Daily services Technical services Fundamental services 3. Demat service Hassle free automated pay-in Wide branch coverage Centralized billing & accounting 6. Commodities State-of-the-art internet trading platform Trading & educational seminar Efficient risk management 5. Investment Advisory Service Angel offers personalized advisory services to HNI investors and actively assists them in managing their portfolio. Value Added back office service Centralized help desk services E-contract notes cum bills 21 . Web enabled centralized back-office Centralized help desk services E-contract notes cum bills 4...
Key corporate developments.RESEARCH DEPARTMENT TOP QUALITY RESEARCH Market Outlook at 9:30 AM A crisp pre-market report that arms our clients with sensitive information before the opening bell. policy announcements. geo-political news and views are analyzed for their impact on the market Technical Report at 6:00 PM 22 .
Tracking individual scrips as well as the Sensex and Nifty.This report analyses trading patterns. Our derivative analysts use the above tolls to project the movement during the next trading sessions Commodities Services Agro Tech Speak: Mainly gives the investors insight into and a forecast for agro commodities viz. historical background. market position of key stocks and offer short term (1 to 5 days) as well as medium term (10 to 20 days) views. reports on oil complex (soyabean castor etc. its insight cuts through the market maze Derivative Analysis Report The report provides FII activity in derivative segments.) along with spices with reports on kapas guar seed 23 . cost of carry of stock and index based derivative products. change in open interest. pulses (urad channa etc). put call ratio.
silver. copper etc with the market insight and expert recommendation on the trading strategies 24 . triumph. achieved .Call Evaluation: A report designed for evaluating the calls given by the angel research team where the reports are classified in 3 broad categories viz. not achieved along with the trade recommendations Commodities Tech Speak: This report mainly equips the investors dealing in MCX segment in commodities like gold. crude oil.
PORTFOLIO MANAGEMENT SERVICE Angel PMS – Ideal For Portfolio Management Services from Angel are essential for investor who needed Long term wealth generation Personalized service 25 .
Investment opportunities in Indian equities Fundamental research based investment decisions In essence. PMS Schemes @ Angel Scheme 1: Angel OYSTER Description: The main objective of the scheme is wealth generation by delivering superior returns over long term through investments and equity related instruments. all investor who have faith and belief in the Indian growth story and robust corporate performance would find Angel PMS most suitable to meet their objectives. Investment Strategy: 26 .
To generate wealth on consistent basis rather than outperform by taking higher risk. Logic works well and thus will be given weight age along with financials Early identification of stocks to ride through the entire investment cycle Timing of investment is important to generate superior returns Bottom –up approach Parameters Driving Investment Decision: Blend of growth and value stocks Investments in companies regardless of market capitalizations Keen selection of stocks based on potential for value unlocking based on key events Focus on companies which display * * * * Scalable business potential Large market opportunity Beneficiary of favorable economic cycle Valuation at steep discount to asset value 27 .
28 . 12-18 months) Scheme 2: Angel BLUE.e.CHIP Description: The objective of the scheme is to generate capital appreciations in the medium to long term through investments in equities and equity related instruments comprising predominantly large cap companies. Investment Strategy: The scheme will seek to achieve returns through brand based participants in equity markets by creating a diversified equity portfolio.researched companies Portfolio could invested in liquid funds Investor Profile: Safety of capital will be of utmost importance The scheme would be suited for investors having medium to long term perspective (i.Sectoral Composition: May include under. The portfolio will be overweight on large cap companies.
The allocation of sectors and stocks in the portfolio may be dynamically structured in tune with changes in broader market conditions Parameters Driving Investment Decision: Overweight on large cap stock. The portfolio strives to limit the exposure to any sector to less than 25% of the portfolio size The portfolio strives to limit the exposure to any stock to less than 10% of the portfolio size 29 . However quality mid cap stocks may also be considered for investment. Portfolio to comprise of a combination of growth & value stocks. The portfolio strives at all time to achieve an 80% allocation to large cap companies.
INDUSTRY 30 . The allocation and composition of medium capitalized stocks to vary based market conditions Investor Profile: The scheme would be suited for investors with low to moderate risk appetite The scheme would be suited for investors having medium to long term perspective.
DETAILS INDUSTRY DETAILS After looking at the details about the company it will be pleasure to get the detail about the industry. The detail regarding the industry comprises the factors that are too included in the industry in which the existing company belongs. 31 .
sellers. Normally. Formal trading rules and 32 . And in case of capital market we can say any condition a market when there is an existence of investors and borrowers of the fund. household have excess of funds or savings.INDIAN CAPITAL MARKET The function of the financial market is to facilitate the transfer of funds from surplus sectors (lenders) to deficit sectors (borrowers). We can say any condition that it is market when any purchaser and seller come into existence. A financial market consists of investors or buyers. It means that it is not requirement of existence of any physical place in the market. which they lend to borrowers in the corporate and public sectors whose requirement of funds far exceeds their savings. dealers and does not refer to a physical location.
a division of Tata sons Ltd.communication networks for originating and trading financial securities link the participants in the market. The aim was to enable NSE to provide nation-wide electronic trading with highest transparency in the market place. was selected as the prime contractor and system integrator by the NSE to provide a total turnkey solution for the money market and capital market’s floorless trading system. Tata Consultancy Services solution gave NSE high visibility and impact.. Using the client-server architecture. Electronics form of Stock Exchange: NSE: Tata consultancy services. fault-tolerant computing and in memory database. 33 .
e. 55. 34 . BSE’s Online Trading System. Currently.Tata Consultancy Services also developed the local and nation wide clearing and settlement system to run in oracle RDBMS environment. now a Tata Group company. There are 1069 company has been listed in the market. 3515 crore. 54.568 trades happen BSE: BOLT i. In NSE average daily turnover is Rs. This enabled BSE to provide floorless and fully automated screen-based trading facilities in the capital market instruments with equal access to investors all over the country. there are 7314 companies has been listed at BSE and shows an average daily turn over of Rs. is designed and developed by CMC Ltd. This screen-based trading system replaced the manual out cry method of trading in the ring and went live on March 1995.499 crore and average daily 43.
1996. NSDL commenced operations on Nov. BSE decided to provide web based trading facility to the members as it was felt that Internet trading would fundamentally change the way exchange and brokers interact with their customers. 35 . OVERVIEW OF NATIONAL SECURITIES DEPOSITORY LIMITED (NSDL) In a span of about four years.For the furtherer expansion of its activities. IDBI the largest development bank in India. NSDL is the first depository to be set up in India. It was incorporated on Dec. 12. 8. Tata Consultancy Services developed the system with the objective of enabling the exchange to service its members and the customers of the members in an efficient manner using the Internet. investors have switched over to electronic (Demat) settlement and NSDL stands at the center of this change. UTI the largest Indian mutual fund and the NSE the largest stock exchange of India sponsored the setting of NSDL and subscribed to the initial capital. 1995.
The following organizations are the shareholders of NSDL • • • • • • • • • • • • Industrial Development Bank of India Unit Trust of India National Stock Exchange State Bank of India Global Trust Bank Ltd. Dena Bank. The Hong Kong and Shanghai Banking Corporation Ltd. Canara Bank Promoters / Shareholders • • • • Promoters Industrial Development Bank of India Limited Unit Trust of India National Stock Exchange of India Limited • Other Shareholders 36 . HDFC Bank Ltd. Deutsche Bank. Citibank NA. Standard Chartered Bank.
• • • • • • • • • • State Bank of India Oriental Bank of Commerce Citibank NA Standard Chartered Bank HDFC Bank Limited The Hong Kong and Shanghai Banking Corporation Limited Deutsche Bank Dena Bank Canara Bank Union Bank of India TRANMISS IN AND NOMINATI ON DEMATERI -LIZATION CORE SERVICES OF NSDL Account opening TRADING AND SETTLEMENT CORE SERVICE S PLEDGE AND HYPOTHECATION PUBLIC ISSUES STOCK LENDING AND BORROWI NG CORPORA TE ACTION 37 .
Interest can be earned only be participating in Stock Lending Scheme. No minimum balance required.Operations performed at a depository are as follows:• • • • Holds Securities in accounts Transfer Securities between accounts Transfers without handling physical securities. 38 . Safekeeping of securities In the Depository:• • • All joint holders to sign instructions.
• • •
Does not move balances in account without account holder’s authorization. Signature and photograph of nominees to be provided. Providing the safety of shares of the share holders which are in their Demat account and in the Trading account.
SERVICE STANDARDS OF NSDL A DP has to deal in business with the following characteristics:• • • • Sensitive and Demanding clients Intense competition on the price front due to which the profit margins are under tremendous pressure Thin profit margins require high volume of clients/transactions for operating the DP services profitably High volume of business is error prone, unless supported by appropriate systems and quality of manpower
OVERVIEW ABOUT CENTRAL DEPOSITORY SERVICES (INDIA) LIMITED (CDSL)
CDSL is the second depository set up by the Bombay Stock Exchange (BSE) in India. It commenced its operations on March 22, 1999. It was set up BSE and other co – sponsored with the net worth of Rs. 104 crores. In it BSE has a 45 % stake while others have 55 % stake. In the same year it has Five Stock Exchanges established connectivity with it for offering trade in Demat securities and 765 companies signed up with it to get their securities admitted for dematerialization. It has 13 DPs in 91 cities across 168 locations covering 320 cities. Other co – sponsored are as under. • • • • State Bank of India Bank of India Bank of Baroda HDFC Bank
CDSL has also attained membership of the Asia – Pacific Central Securities Depository Group (ACG). ACG has 22 members including depositories from Japan, Jog Kong, Singapore, Malaysia, Australia, and New Zealand. Membership of the organization is expected to help CDSL enhancing its knowledge base and contributing to the development of other member organizations in the best international practices, settlement risk management, cross-border linkage and technological development. This, in turn, would help CDSL to secure foreign institutional investors’ business through their custodian.
Operations Performed by CDSL
• • • • • • • • • Carrying out actually share transactions To do PSU disinvestments To provide Centralized system at one e-space To secure Foreign Institutional Investors’ business Dematerialization of the Securities Pledge creation in against the securities Rematerialization Trading and settlement on day to day basis Work as a custodian of its clients
REGULARTORY ENVIRONMENT DETAILS 42 .
for Government and SEBI issue notification. RULES AND REGULATIONS The Government has framed rules under the SCRA. etc. and circulars which need to be compiled with by market participants. and (d) The Depositories Act. prevention of SEBI has framed regulations under the SEBI Act and the unfair trade practices. Under these Acts. (SROs) like Stock Exchanges have also laid down their rules. preventing transactions in securities by regulating the business of dealing insecurities (b) The Companies Act.REGULATORY ENVIRONMENT DETAILS LEGISLATION The four main legislations governing the securities market are: (a) The Securities Contracts (Regulation) Act. SEBI Act and the Depositories Act. 1956. The self-regulatory organizations depositories Act for registration and regulations of all market intermediaries. 1956. 1996 which provides for electronic maintenance and transfer of ownership of dematerialized securities. insider trading. 1992 for the protection of interests of investors and for promoting development of and regulating the securities market. which is a uniform law relating to companies throughout India (c) The SEBI Act. guidelines. 43 .
The responsibility for regulating the securities markets shared by Department of Economic Affairs (DEA). Securities and Exchange Board of India (SEBI) and Securities Appellate Tribunal (SAT). 44 . Reserve Bank of India (RBI). Department of Company Affairs (DCA).REGULATORS The regulators ensure that the market participants behave in a desired manner so that the securities market continues to be a major source of finance for corporate and government and the interest of investors are protected.
• • • • • • • Registering and regulating the working of collective investment schemes including mutual funds Promoting and regulating self-regulatory organizations Prohibiting fraudulent and unfair trade practices in the securities market Promoting investors education and training of intermediaries in securities market Prohibiting insiders trading in securities Regulating substantial acquisition of shares and take over of companies Calling for information. 45 . registrars to am issue. intermediaries and self-regulatory organizations in the securities market. investment advisers and such other intermediaries who may be associated with securities market in any manner. According to the preamble of the SEBI. undertaking inspection. share transfer agents. merchant bankers.OBJECTIVES OF SEBI The promulgation of the SEBI ordinance in the parliament gave status to SEBI in 1992. bankers to the issue. portfolio managers. the three main objective are: • • • To protect the interests of the investors in securities To promote the development of securities market To regulate the securities market FUNCTIONS OF SEBI: The main functions entrusted with SEBI are: • • Regulating the business in stock exchange and any other securities market Registering and regulating the working of stock brokers. trustees of trust deed. underwriters. conducting enquiries and audits of the stock exchanges.
Venture capital funds 18. Merchant banker 8. Mutual funds 19. Foreign institutional investor 15. Banker to an issue 5. Sub-broker 3. Collective investment schemes 17. Stock-broker 2. Share transfer agent 4. Custodian of securities 14. as required by section 12: 1. Depository 12. Underwriter 9. Portfolio manger 10. Any other intermediary associated with the securities market 46 . Credit rating agency 16. sell or deal in securities after obtaining of registration from SEBI.REGISTRATION OF INTERMEDIARIES: The intermediaries with securities market shall buy. Investment advisor 11. Registrar to an issue 7. Depository participant 13. Trustee of the trust deed 6.
COMPETITOR’S DETAILS 47 .
COMPETITORS DETAILS • • • • • • • • • • • • • STOCK HOLDING CORPORATION OF INDIA LIMITED MOTILAL OSWAL ICICI BANK SHARE KHAN UTI BANK MARWADI GROUP CENTURION BANK HDFC KOTAK PRANAV SECURITIES MERRILL LYNCH OTHER STOCK BROKERS ANAGRAM SECURITIES 48 .
mutual funds and other capital market instruments distribution MOTILAL OSWAL The company came into existence in 1987 with small business house. GIC and its subsidiaries. to institutional investors and retail investors. 1986.SHCIL (STOCK HLDING CORPORATION OF INDIA LIMITED) Stock Holding Corporation of India Limited (SHCIL) was promoted by public financial institutions and insurance majors like IDBI. SHCIL provides depository. IFCI and IIBI. SGL constituent account services. post trading. Other auxiliary services provided by SHCIL include derivatives clearing. SHCIL was incorporated as a public limited company on July 28. PF fund accounting. The following are the function of the motilal Oswal They are the Distributor of Mutual Funds same as Karvy they are the ARN code holder who can sell the mutual fund of all the company 49 . UTI. securities lending. LIC. custodial services. ICICI.
ICICI Bank currently has subsidiaries in the United Kingdom. cash market ICICI BANK ICICI Bank is India's second-largest bank with total assets of about Rs. ICICI Bank set up its international banking group in fiscal 2002 to cater to the cross border needs of clients and leverage on its domestic banking strengths to offer products internationally. 2. 1. branches in Singapore and Bahrain and representative offices in the United States. 2005 and profit after tax of Rs.1. life and non-life insurance.659 crores at March 31. Bangladesh and South Africa. SHAREKHAN 50 .005 crores for the year ended March 31. China. ICICI Bank has a network of about 560 branches and extension counters and over 1.They have registered themselves with NSE and do the functions of Derivatives market. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking.900 ATMs. United Arab Emirates. venture capital and asset management. Canada and Russia. commodity market. 2005 (Rs.637 crores in fiscal 2004).67.
rematerilialization. So when he says that investing in stocks should not be confused with trading in stocks or a portfolio-based strategy is better than betting on a single horse. India’s first depository. pledge-Hypothecation. 51 . a veteran equities solutions company with over 8 decades of experience in the Indian stock markets. it is something that is spoken with years of focused learning and experience Sharekhan brings a user.Sharekhan is an equities focused organization tracing its lineage to SSKI. tele depository services. In the stock markets. Sharekhan does not claim expertise in too many things. coupled with a wealth of content that will help investors stalk the right shares.friendly online trading facility. We can avail all of the depository-related services by just opening an account with NSDL through UTI Bank. transfer of shares and settlements. receipt of corporate benefits. UTI Bank provides services like dematerialization of shares. UTI BANK UTI BANK is a registered member (Depository Participant) of NSDL. Sharekhan's expertise lies in stocks and that's what he talks about with authority. holdings & transaction statements on email. freezing/ locking Of Accounts.
52 . CENTURION BANK Centurion Bank. It has 250 franchisee / sub-brokers and authorized person’s network. The company ranked among top 50 broking houses. we go way beyond merely offering our valued customers technology driven solutions.MARWADI SHARES AND FINANCE PRIVATE LIMITED Marwadi Shares And Finance Pvt. Among Centurion Bank’s greatest strengths is the fact that it is a professionally managed bank with a globally experienced management team. Centurion Bank constantly endeavors to offer customized services that are driven by customer requirements rather than just exhibiting technological prowess. And each of these branches are harnessed to state of the art technologies to offer unparallel customer service. But of course. more than 554 pin codes. as its very positioning suggests. has an extensive network of branches across India. Ltd. Was incorporated in 1992.Marwadi Group servicing more than 75000 clients.
e PAY solutions HDFC (HOUSING DEVELOPMENT FINANCE CORPORATION) HDFC was found over two decades ago. Cash Management. has been to enhance residential housing stock and promote home ownership. Retail Loans. over a million satisfied customers whose dreams are realize by HDFC. Their objective. an affiliate of Kotak Mahindra Bank. The institutional 53 . Demat. They think “All you need is the courage to innovate. They also offer specialized financial services to their customer base through partnerships with some of the best financial institutions worldwide. the skill to understand your clientele and the desire to give them your best. in 1977. their offerings range from hassle-free home loans and deposit products. from the beginning. NRI Services.They provide services like Personal Banking. their solution for success is customer satisfaction. Now.” Today. KOTAK SECURITIES Kotak Securities. is the stockbroking and distribution arm of the Kotak Mahindra Group. stand testimony to their success. to property related services and a training facility.
The group a net worth of over Rs. London. primarily covers secondary market broking. Ford Credit (one of the world's largest dedicated automobile financiers) and Old Mutual (a large insurance. The division also has a comprehensive research cell with sectorial analysts covering all the major areas of the Indian economy. Shah and the Sonex Group of Hong Kong presence on all the leading exchange segments on the cash and Derivative markets.000 Kotak Mahindra has partnerships with Goldman Sachs (one of the world's largest investment banks and brokerage firms). Net worth – among the better capitalized houses in the industry. It caters to the needs of foreign and Indian institutional investors in Indian equities (both local shares and GDRs. A fully professional. Pranav M. 550 crores and employs over 3. Dubai and Mauritius. Global Depository Receipts). banking and asset management conglomerate). which brings you AKSESS.business division.1. Track record of profitable ideas fro our clients with research 54 . young and dynamic organization promoted by Mr. With a presence in 59 cities in India and offices in New York. A Rs. 00. Pranav Securities Pranav Securities is India's first ISO 9001: 2000 certified broking house. Expertise in cross border ADR/GDR trades and servicing FIIs special understanding of the particular needs of OCBs and NRIs. 120 mn.000 employees in its various businesses. it services a customer base of over 5.
55 . Merrill Lynch has three core businesses – Global Private Client. MERRILL LYNCH Merrill Lynch is one of the world’s leading financial management and advisory companies. A veritable galaxy of research products catering to different time horizons and investment needs. at the end of 2004. Global Markets & Investment Banking Group and – offering a range of services for private clients. with offices in 36 countries and total client assets of approximately $1. the company is one of the world’s largest managers of financial assets. and financial intermediaries Merrill. small businesses. Through Merrill Lynch Investment Managers. institutions and corporations.inputs that are widely quoted in local and international print/electronic media. As an investment bank.6 trillion. institutions and individuals worldwide. with assets under management of $501 billion at the end of 2004. governments. the company is a leading global underwriter of debt and equity securities and strategic advisor to corporations.
BAJAJ CAPITAL Bajaj Capital is SEBI approved merchant bankers. They are dealing only in Stock Market and nothing else. They have a track record of ethical dealings for the last 38 years and have had the honor of helping millions of investors achieve their life's financial goals. Gujarat state is one of the most important fields of their business. 2000 crores Lalbhai Group. Last year their trading crossed Rs. Though they are doing good research work regarding companies and market which will be the beneficial to the investors. investment advisors and financial planners. ANAGRAM SECURITIES Anagram Securities is the part of the Rs. It was found in 1993 and is a member of the National Stock Exchange. 17000 crores with around 5000 people making. And they have about 30 branches throughout Gujarat 56 .
right at your fingertips. Angel provides full access to all products and services through multichannels. detailed data and news. Angel stock broking offers real-time prices. Services provided are as below • • • • • Equities & Derivatives Depository Services Commodities Mutual Funds IPOs 57 . To provide the highest possible quality of service.PRODUCTS & SERVICES Angel stock broking offers a full range of financial services and products ranging from Equities to Mutual Fund to enhance your wealth and hence achieve your financial goals. Angel’s Relationship Managers are available to you to help with your financial planning and investment needs. This powerful technology is complemented by our knowledgeable and customer focused Relationship Managers. and electronic trading capabilities. intelligent analytics.
automated online investing and access to all IPOs.Equities & Derivatives and Commodities: Our Retail Equity Business caters to the needs of individual Indian and Non Resident Indian (NRI) investors. 58 . Through various types of brokerage accounts Angel offers the purchase and sale of securities which includes Equity. Derivatives and Commodities Instruments listed on National Stock Exchange of India Ltd. Angel offers broker assisted trade execution. The Stock Exchange. NCDEX and MCX. Mumbai (BSE). (NSEIL).
59 . Angel Depository Services is part of our value added services for our client that create multiple interfaces with the client and provide for a solution that takes care of all your needs. Angel performs clearing services for all securities transactions platform – execute trades through Angel Securities and settle these transactions through the Angel Depository Services.Depository Services Angel is a depository participant with the National Securities Depository Limited and Central Depository Services (India) Limited for trading and settlement of dematerialized shares.
RESEARCH 60 .
well defined is half solved. ” 61 .PROBLEM FORMULATION Research being a logical process definitely follows predetermined or steps in order to obtain the desired results or outcomes. the step of problem formulation is most challenging and critical one for the researcher as well as the research. The Research topic undertaken by me is “Study of the Investment Pattern of an investor towards various investment alternatives available before him. It is rightly said that a problem. Though the entire process of research is quite complex and requires a considerable degree of knowledge and skill.
62 . An objective provides a specific direction to an activity. What is the ratio of his risk & return? To identify the short term or long term investor. ” However following are the sub objectives. To identify the investor preference towards various investment alternatives. but they should be clear enough to point out with reasonable accuracy what researchers wants to achieve through the study and how it will be helpful to the decision maker in solving problem. Objectives may range from very general to very specific. In context of my project study The main objectives of my research is to” Study of the Investment Pattern of an investor towards various investment alternatives available before him.Research Objective Any activity done without any objective cannot turn fruitful. To identify whether the investor is a risk taker or seeks safety of his funds.
RESEARCH METHODOLOGY 63 .
If there were no research design. the research would have only foggy notion about what is to be done. those that provide the basic guidelines for the details of the project.RESEARCH METHODOLOGY A research design is a pattern or an outline of a research project’s workings. which can be classified into three broad categories. There are numerous specific designs. It is a statement of only the essential elements of a study. Descriptive Design Quasi Experimental Design Experimental Design 64 .
Descriptive Design: These designs have its name because they describe a phenomenon without establishing association between the factors. degree of change in one variable ‘y’ when another variable ‘x’ is changed. Experimental Design: These designs are intended to demonstrate cause and effect relationship such designs can measure communicate variation i. Hence these designs are utilized when a need is to produce accurate description of variables. 65 .e. Quasi Experimental Design: These designs as the name implies lacks the vigorous qualities of real experiments particularly valid demonstration of variable association. In context of my project study In context of my project study my research design would be descriptive design. Still they are not descriptive ones.
DATA COLLECTION METHOD Data collection procedure is carried out in order to know the exact information for the research work. For this utmost accurate information can be gathered by means of questionnaire only. Data collection is done basically in three ways as under: • • • Observation method Survey method Questionnaire In context of my project study The communication approach followed by me for this project is personal questioning the respondents. questionnaire is my tool for data collection. So. 66 .
SAMPLING METHOD The sampling method can be categorized in the following manner: • • Probability Sampling Non Probability Sampling In context of my project study In my research the sampling method would be Non Probability Judgment Sampling Sample Size In my research the sample size is 100. 67 .
DATA ANALYSIS AND INTERPRETATION 68 .
INVESTMENT IN VARIOUS ALTERNATIVES Commodities Real estate 8% 5% M. 20% Stock market 45% Govt. 22% Chart. after that Government Securities is the second preferred investment alternative and Mutual Fund is the third preference for investment and 69 .2 From above graph it is observed that 45% of the people invest in the stock market.Sec.F.
more and more investors are investing in the stock market and awareness and knowledge of stock market is increasing by leaps and bounce whereas commodities market in India is not yet preferred by the Investors compare to other alternatives like Mutual Fund.3 The above chart depicts that 45% of the investors wants to earn a good return from their investment after that 25% of the investors prefers that their investment should provide highly liquidity that means they should be able to sale them as and when they are in need of money. INVESTMENT CRITERION Safety of funds Other 2% 8% Liquidity 25% Good return 45% Quick return 20% Chart. 20% of the investor wants quick return from their investment while 8% of the investor wants safety of their funds. 70 . Nowadays. Real Estate etc.Commodities Market is the least preferred investment alternative amongst all investment alternatives. Government Securities.
ended Mutual Fund Scheme while 29% of the investors prefer to invest in Close ended scheme while 14% of the investors prefer to invest in both the types of the schemes.ended 57% Chart.4 The above chart depicts that open ended scheme is highly preferable amongst the Mutual Fund investors.PREFERENCE IN MUTUAL FUND SCHEME Both 14% Close .ended 29% Open . 71 . 57% of the Mutual Fund investors prefer to invest in Open.
72 .P. after that K. 25% Fixed Deposits 37% Chart -5 According to the above chart Fixed Deposits are still the best investment avenue amongst the investors who invests in the Government Securities with 37% investors investing in it.V.P.(Kishan Vikas Patra) comes second with 25% of the investor investing in it. after that Post office deposits comes where 21% of the Investors invests money while in N.C. 6% Government Bonds 9% Other 2% K. INVESTMENT IN GOVERNMENT SECURITIES Post -office Deposits 21% N.The main reason why the investor prefers Open ended scheme is that the investor has the option of selling his units in the market any time according to his likings.V.C. ( National Saving Certificate) 6% of the investors are investing money.S.S.
6 The investors who prefers Real Estate as an investment alternative 45% of them prefers Land as an investment alternative while in Building & Infrastructure 33% of the investor invest their money while 22% of the investors invest their money in both the investment alternative. 73 .INVESTMENT IN REAL ESTATE Both 22% Land 45% Building&Infrast ructure 33% Chart.
INVESTMENT IN COMMODITY Both 12% NCDEX 29% MCX 59% Chart.7 Amongst the investors who prefers to invest in the commodity market 59% of them invest/ trade in MCX while 29% of them invests/ trades in NCDEX while 12% of them prefers both MCX & NCDEX. 74 .
75 .Oil 10% Silver 20% Copper 24% Gold 42% Chart.8 From the chart we can conclude that amongst the investor who prefers to invest/ trade in MCX trade / invest in Gold most with 42% and after that copper comes with 24% then silver comes with 20% preference then crude comes with 10%.INVESTMENT IN MCX Other 4% Crude .
76 .INVESTMENT IN NCDEX Other 9% Channa 18% Jiru 6% Kapas 15% Wheat 52% Chart -9 The above chart shows that the investor trade / invest in NCDEX prefers wheat first with 52% after that channa comes second with 18% and then kapas with 15% then followed by 6%.
10 The above chart depicts that 33% of the investors who prefers stock market as an investment alternative are investors who invests for a long time compare to trader with 45% who invest for a shorter period of time. 77 .TYPE OF INVESTOR IN STOCK MARKET Both 45% Investor 33% Trader 22% Chart.
P.11 The above chart depicts the parameters which the investor considers before investing into particular script of the company. 78 .S.PARAMETERS CONSIDERED BEFORE INVESTING IN ANY COMPANY Market capital 10% Company image 26% Other 3% Profitability 44% E.S. 17% Chart.P. From the chart we can conclude that majority of the investors considers profitability first with 44% after that the second preference is given to the company image with 26% followed by E. with 17% and market capital 10%.
HOW INVESTOR TAKES BUYING DECISION IN THE STOCK MARKET Advice from Friend/Relative 31% Other 6% Own knowledge 13% Advice from Broking house 50% Chart.12 The above chart shows the various factors from which the investor takes the buying decision in the stock market. We can conclude that majority of the investor takes the buying decision from the advice from the broking house with 50% and 31% takes from the advice from friends / relatives while only 13% takes buying decision from their own knowledge. 79 .
INVESTOR'S RETURN CRITERION Moderate / Average Return 21% Other 7% Book Profit 41% High Return 31% Chart.13 The chart shows the return criteria of the investor who are investing in the stock market for a longer period of time compare to trader. 80 . We can see from the chart that 41% of the investors have the tendency of booking of the profit while 31% of the investors are looking for higher return whereas 21% are looking for moderate / average return.
By looking at the chart we can say that 33% of the traders prefers trading in Future & Options while 22% of the traders prefers Intraday as the trading pattern. whereas majority of them prefers trading in both with 40%.14 The above chart depicts the trading pattern of a trader who is investing for a shorter period of time in the stock market. 81 .TRADING PATTERN OF TRADER IN STOCK MARKET Both 40% Intraday 22% Other 5% Future & Option 33% Chart.
The chart shows that 43% of the traders believe in the ratio of the high risk & return while 29% of the traders believe in Moderate risk / Moderate return while 21% of the traders are of the side of Low Risk & Low Return.TRADER’S RISK & RETURN RATIO Moderate Risk&Moderate Return 29% Other 7% High Risk& High Return 43% Low Risk& Low Return 21% Chart. 82 .15 The above chart depicts the ratio between the risk & return of a trader in a Stock Market.
From the chart we can see that 48% of the respondents are under graduate while 23% of them are post graduate whereas 29% of them belong to other background such as under 12th. 83 .EDUCATIONAL DETAILS OF THE RESPONDENTS Other 29% Under Graduate 48% Post Graduate 23% Chart. 10th etc.16 The chart shows the educational background of the respondents.
17 The above chart is about the income (monthly) of the respondents which shows that maximum 44% of them belong to the class of 10.000-25. of them 84 .000.25.000 44% Chart.000 whereas 18% of the respondents belong to the class of 25.000 and 12% belong to the class of >35.000-35.0000 while 26% of them belong to the class of <10.000-35.000 12% 25.000 per month.000 18% >10000 26% 10.INCOME (MONTHLY) OF RESPONDENTS <35.
85 .SOCIAL CLASS OF RESPONDENTS Lower Class 20% Upper Class 33% Middle Class 47% Chart.18 From the respondents we can get an idea from the chart that 47% of them belong to the Middle Cass while 33% of them belong to the Upper Class whereas 20% of them belong to the Lower Class.
(Kishan Vikas Patra) comes.V. Commodities market etc. In MCDEX market investor trade most in Wheat 86 . • The prime criteria of an investor regarding investment are good return after that liquidity comes second. In Commodities market Investor trades more in MCX compare to NCDEX In MCX investors trade mostly in Gold. • In Mutual fund the investor prefers open ended scheme more than close ended scheme. Government Securities. Real Estate. of people are now investing in the stock market compare to other investment alternatives Mutual Fund. • • • • In Real Estate Land is the favourite investment alternative for Investor.P. • In Government securities investors first preference is Fixed Deposits than K.FINDINGS • It has been noticed that more and more no.
Intra day & F.000 • Most no. of investors are working on the strategy of booking the Profit.• In Indian Stock Market investor are more of both the types i. More no of traders are doing trading in both the patterns i. Investor & Trader compare to either Investor or Trader • The Investor before investing into any company first factor he considers the profitability of the company. 87 . • The investor’s buying decision is highly influenced by the Advice / Tips from the broking house • • More no.e. of respondents belong to the under graduate educational background • Most no. of the respondents belongs to the middle class.e. (Future & Options.O. of the respondents belong to the income (per month) level 10.000-25.) • • Most of the trader believes in the ratio of high risk & high return More no.
• and This research is done within the Jamnagar city only therefore findings suggestion given on the basis of this research cannot be considered for the entire universe. 88 .LIMITATIONS • Due to limitation of time and cost constraints a sample size of only 100 respondents is chosen. • The information given by the respondent may not be 100% genuine. • Data analysis and interpretation done may not be that strong due to small sample size.
of investors are now preferring Stock Market as an investment alternative compare to another investment avenues. CONCLUSION • It has been noticed that more and more no. • Most of the investor in stock market takes the buying decision from the advice / tips from the broking house. • The investor who seeks safety of his funds and stability of returns prefers government security compare to other investment alternatives • The perception of Indian investor regarding Indian Stock Market has changed drastically. • The scenario of Indian stock market has been changed compare to what it used to be in past.. It has been now seen as an investment avenue compare to earlier when people used to believe that Stock Market is highly risky. • The awareness level and knowledge of stock market has been increasing by leaps and bounce 89 .
prefers stock market as an investment tool rather than doing trading. which is considered to be the most knowledge class. • Due to the uncertainty of return and various scams most of the Investors do not prefer Stock Market as an investment alternative. • The investor in Mutual Fund prefers open ended scheme than close ended scheme. • The trader in the stock market believe in taking the more risk and they believe in the ratio of high risk & high return. • The investor prefers Stock Market more because of Good return and highly liquidity.• Professional and Business class. • Most of the investor preferring land as an investment alternative mainly due to tax saving purpose. • The Investor possess less knowledge of Commodity Market compare to Stock Market 90 .
• • Company should concentrate more on its Marketing Department The high employee turn over is a big concern for the company. So. 91 . the company should conduct various seminars and presentation to guide the investor and increase their knowledge. So the company should recruit such persons who can serve the organization for a long time • The company should send their representative to the investor and make them aware of the various services & benefits they get compare to other companies.RECOMMENDATIONS • The awareness and knowledge amongst the investors is less regarding the investment alternatives available before him.
What is your investment criterion? Good return Quick return Liquidity Safety of funds Other 92 . This is possible with some Research and Development. QUESTIONNAIRE: Dear respondents I am conducting a survey on “To Study the Investment Pattern of an investor towards various investment alternatives available before him. So company should spend on R & D. Where do you invest your money? Mutual fund Government securities Stock market Commodities Real estate / Properties Other 2.” Kindly corporate in my research by giving genuine answers. 1.• The company should also try to come out with some new products which are not yet launched in the market.
If you are investing in stock market what type of investor you are? Investor 93 . If you are investing in Government securities where do you invest your money? K. Fixed deposits N. If you are investing in mutual fund then in which scheme do you prefer? Open-ended scheme Close-ended scheme Both of the above 4. If you are investing in MCX then in which commodity do you trade most? Copper Gold Silver Crude-oil Other 8. Post office deposits Government Bonds Other 5.V.P. If you are investing in NCDEX then in which commodity do you trade most? Wheat Kapas Channa Ziru Other 9.S. If you are trading in Commodity then in which market do you trade? MCX NCDEX Both 7.C. If you are investing in real estate where do you invest your money? Land Building & Infrastructure Both of the above 6.3.
If you are trader then what is your trading pattern? Intraday Future & Option Both of the above Other 14. Which parameters you look before investing in a particular company? Profitability position EPS Image Market capital Other 11. If you are a trader what is your risk& return ratio? High risk & high return Low risk & low return Moderate risk & moderate return Other 15. How you take the buying decision regarding any particular script/security? Own knowledge Advice/tips from the broking house Advise/tips from friends or relatives Other 12. If you are investor then what is your return criteria? Book profit High return Average/moderate return Other 13.Trader Both of the above 10. Personal Information Name: Education: Under Graduate _______________________________________________ 94 .
6.000 – 25. No.000 LIST OF CHARTS Sr. 8. 2. 10. 1. 7. 11.000 10.000 25. 4. 5. 9. 3. 18 70 71 72 73 74 75 76 77 78 79 95 . Name of Charts Organization Chart Investment Chart Investment Criteria Preference in Mutual Fund Scheme Investment in Government Security Investment in Real Estate Trading in Commodities market Investment in MCX Investment in MCDEX Type of investor in Stock Market Parameters considered before investing Page No.000 -35000 >35.Post Graduate Under 12 Other Social Class: Upper class Middle class Lower class Income (monthly): <10.
18. How investors take buying decision in Stock Market? Investor’s return criteria Trader’s trading pattern in Stock Market Return criteria of Trader in Stock Market Educational classification of respondents Income (monthly) of respondents Social Class of respondents 80 81 82 83 84 85 86 GLOSSARY Trader: A trader is a person who deals in the stock or commodities market for the short period and with a view to earning a good return. 17. His trading period can be ranged from 1 day to 1 month. 14.12. 16. He can invest for a period ranging from 1 day to 5 to 10 years according to his liking. Investor: An Investor is a person who invest long term in the stock market compare to trader. A trader is usually a more risk taker. 96 . An investor is one who does delivery based buying in stock market. 15. MCX & NCDEX: MCX & NCDEX are the two segments of the Commodity market in which investor can trade according to his liking. 13.
97 . Intra day: It is a trading pattern in Stock Market in which the trader can purchases or sale securities for the period of one day only.Book profit: Booking of profit means that an investor / trader sales the securities after earning a reasonable return. Liquidity: Liquidity means the investor’s has the convenience of selling his investment any time and avail his money as and when he needed and the investor’s money is not blocked for a certain period of time. In Future & Option the trader has the option of purchasing the shares by just paying the margin money specified by the stock exchange and he can hold these shares up to last Thursday of the month. Future & Options: It is a trading pattern in the stock market in which the trader has the option of purchasing shares in a lot depending upon the shares and its price. At the end of the day he has to settle his trade. In between he can sale the shares according to his liking but the maximum holding period is last Thursday of the month.
BIBLIOGRAPHY 98 .
com www.nseindia.com 99 .gov.com www.in www.WEBSITE VISITED FOR THE PROJECTS • • • • • www.moneycontrol. www.researchguru.sebi.com.angeltrade.