RESERACH REPORT ON STUDY OF INVESTMENT PATTERN OF AN INVESTOR TOWARDS VARIOUS INVESTMENT ALTERNATIVES AT ANGEL STOCK BROKING LTD.

JAMNAGAR SUBMITTED BY GUSAI CHETANGIRI RAMESHGIRI MBA SEM IV GUIDED BY Prof. RAJESH FALDU

ACADEMIC YEAR
2005 2007 SUBMITTED TO JAYSUKHLAL VADHAR INSTITUTE OF MANAGEMENT STUDIES (JVIMS) BIPIN T. VADHAR COLLEGE OF MANAGEMENT JAMNAGAR AFFILIATED TO SAURASHTRA UNIVERSITY RAJKOT

DECLARATION
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

PREFACE

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

Thanking you.

CHETANGIRI GUSAI

ACKNOWLEDGEMENT
My visit at Angel Stock Broking Ltd., 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. I take this opportunity to express my sincere thanks to Prof. Rajesh Faldu and Mr. Jwalant Shingala (Branch Manager), at Angel Stock Broking Ltd. who had played a very important role in the completion of this project. I also pay special thanks to the employees who have helped me in providing the knowledge regarding Angel Stock Broking.

Yours truly,

CHETANGIRI GUSAI

CONTENTS

Sr. No.

Page No. Particulars 6

1. 2.

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

10.

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EXECUTIVE SUMMARY
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.

INTRODUCTION
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

ABOUT ANGEL
In a shot span of 18 years since inception, the Angel Group has emerged as one of the top five retail stock broking houses in India, having membership of BSE, NSE and the two leading Commodity Exchanges in the country i.e. NCDEX & MCX. Angel Broking is also registered as a Depository Participant with CDSL. The group is promoted by Mr. Dinesh Thakkar, who started this business as a subbroker in 1987 with a team of 3. Today the angel group is managed by a team of 1600+ direct employees and has a nation wide network comprising of 12 Regional hubs, 59 branches and 2200+ sub brokers & business associates. The group currently services more than 1.8lac retail clients. 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

COMPANYS PROFILE

NAME OF THE COMPANY:

ANGEL STOCK BROKING LTD.

REGISTERED OFFICE:

G-1, Akruti Trade Centre, Road No. 7, MIDC Marol, Andheri (E), Mumbai 400 093

BRANCH OFFICE:

ANGEL STOCK BROKING LTD. Indraprashta Building, 2nd Floor, Office 228-229 Pancheshwar Tower Road, Jamnagar- 361001

FORM OF ORGANISATION:

Private Sector

PROMOTER:

Dinesh Thakkar

ACCOUNTING YEAR:

1ST April to 31st March

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VISION

To provide best value for money to investors through:

Innovative products Trading / investment strategies State of the art technology Personalized service

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STRENGTHS OF ANGEL
Understanding the needs of a channel partner and retail investor very well.

Deriving inspiration from their vision of providing the best value for money to their clients.

Strict adherence to compliance norms.

Ethical business practices.

Timely research based advice to their clients.

50 member research / advisory team comprising of experienced fundamental and technical analysis, sector specialties, derivative strategist and commodity analysts

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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.

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BUSINESS PHILOSOPHY

Ethical Practices & transparency in all their dealings

Customer Interest above all

Always deliver what we promise

Effective cost management

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INVESTMENT PHILOSOPHY
Given the clients risk profile, maximize performance by adhering to disciplined investment approach backed by quality research.

Angels investment philosophy is based on two key attributes: 1. Wealth Creation 2. Wealth Preservation

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OBJECTIVE OF ANGEL INVESTMENT PHILOSOPHY

Angels objective at all time is to protect and then grow your portfolio. 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, which would result in out-performing the market along with wealth creation. Angels investment philosophy is outlined by in-depth focus on a disciplined long term investment approach in potential multi-baggers. The 3 important tenets that we look for in any stock are: Consistent, steady & sustainable returns Margin of safety Low volatility

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CRM (Customer Relationship Management) Policy

Angel CRM policy is as follows: A customer is the most important visitor on our premises. He is not dependent on us but we are dependent on him. He is not an interruption in our work but is the purpose of it. We are not doing him a favour by serving. He is doing us a favour by giving us an opportunity to do so.

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ORGANISATION CHART

ANGEL STOCK BROKING LTD, NATIONAL BRANCH GENERAL MANAGER

HEAD RETAIL SALES MANAGER

ZONAL MANAGER

REGIONAL MANAGER

BRANCH MANAGER

RELATIONSHIP MANAGER

Chart - 1

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SWOT ANALYSIS

STRENGTH: WEAKNESS: High Employee Turnover. Strong Communication Network. Good Image and strong back ground.

OPPORTUNITY: To get into the segment of such investors who are less risky. Marketing at rural and semi-urban areas.

THREATS: Increasing number of local players. Past image of Stock market

MANAGEMENT TEAM

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Sr. No. Names 1 2 3 Mr. Dinesh Thakkar Mr. Rajen Shah Mr. Phani Sekhar

Designation Chairman & Managing Director Chief Investment Officer Senior Research Analyst

SERVICES PROVIDED

1. E Broking: Multiple exchanges on single screen Intra-day calls & flash news Historical charts with technical tools 2. Research

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 Daily services Technical services Fundamental services 3. Investment Advisory Service Angel offers personalized advisory services to HNI investors and actively assists them in managing their portfolio... Web enabled centralized back-office Centralized help desk services E-contract notes cum bills 4. Commodities State-of-the-art internet trading platform Trading & educational seminar Efficient risk management 5. Demat service Hassle free automated pay-in Wide branch coverage Centralized billing & accounting 6. Value Added back office service Centralized help desk services E-contract notes cum bills

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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. Key corporate developments, policy announcements, geo-political news and views are analyzed for their impact on the market

Technical Report at 6:00 PM 22

This report analyses trading patterns, 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. Tracking individual scrips as well as the Sensex and Nifty, its insight cuts through the market maze Derivative Analysis Report The report provides FII activity in derivative segments, change in open interest, put call ratio, cost of carry of stock and index based derivative products. 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. pulses (urad channa etc); reports on oil complex (soyabean castor etc.) along with spices with reports on kapas guar seed

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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. achieved , triumph, not achieved along with the trade recommendations Commodities Tech Speak: This report mainly equips the investors dealing in MCX segment in commodities like gold, silver, crude oil, copper etc with the market insight and expert recommendation on the trading strategies

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PORTFOLIO MANAGEMENT SERVICE

Angel PMS Ideal For

Portfolio Management Services from Angel are essential for investor who needed

Long term wealth generation Personalized service

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Investment opportunities in Indian equities Fundamental research based investment decisions

In essence, 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.

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. Investment Strategy:

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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

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Sectoral Composition: May include under- 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.e. 12-18 months)

Scheme 2: Angel BLUE- 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. The portfolio will be overweight on large cap companies.

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The portfolio strives at all time to achieve an 80% allocation to 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. However quality mid cap stocks may also be considered for investment. Portfolio to comprise of a combination of growth & value stocks. 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

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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.

INDUSTRY
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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.

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INDIAN CAPITAL MARKET

The function of the financial market is to facilitate the transfer of funds from surplus sectors (lenders) to deficit sectors (borrowers). Normally, household have excess of funds or savings, which they lend to borrowers in the corporate and public sectors whose requirement of funds far exceeds their savings. A financial market consists of investors or buyers, sellers, dealers and does not refer to a physical location. It means that it is not requirement of existence of any physical place in the market. We can say any condition that it is market when any purchaser and seller come into existence. 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. Formal trading rules and

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communication networks for originating and trading financial securities link the participants in the market.

Electronics form of Stock Exchange: NSE:

Tata consultancy services, a division of Tata sons Ltd., was selected as the prime contractor and system integrator by the NSE to provide a total turnkey solution for the money market and capital markets floorless trading system.

The aim was to enable NSE to provide nation-wide electronic trading with highest transparency in the market place. Using the client-server architecture, fault-tolerant computing and in memory database, Tata Consultancy Services solution gave NSE high visibility and impact.

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Tata Consultancy Services also developed the local and nation wide clearing and settlement system to run in oracle RDBMS environment. There are 1069 company has been listed in the market. In NSE average daily turnover is Rs. 55,499 crore and average daily 43, 54,568 trades happen

BSE:
BOLT i.e. BSEs Online Trading System, is designed and developed by CMC Ltd, now a Tata Group company. This screen-based trading system replaced the manual out cry method of trading in the ring and went live on March 1995. 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. Currently, there are 7314 companies has been listed at BSE and shows an average daily turn over of Rs. 3515 crore.

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For the furtherer expansion of its activities, 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. 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.

OVERVIEW OF NATIONAL SECURITIES DEPOSITORY LIMITED (NSDL)

In a span of about four years, investors have switched over to electronic (Demat) settlement and NSDL stands at the center of this change. NSDL is the first depository to be set up in India. It was incorporated on Dec. 12, 1995. IDBI the largest development bank in India, 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. NSDL commenced operations on Nov. 8, 1996.

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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. Citibank NA. Standard Chartered Bank. HDFC Bank Ltd. The Hong Kong and Shanghai Banking Corporation Ltd. Deutsche Bank. Dena Bank. Canara Bank

Promoters / Shareholders

Promoters Industrial Development Bank of India Limited Unit Trust of India National Stock Exchange of India Limited

Other Shareholders 36

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

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Operations performed at a depository are as follows: Holds Securities in accounts Transfer Securities between accounts Transfers without handling physical securities. Safekeeping of securities

In the Depository: All joint holders to sign instructions. No minimum balance required. Interest can be earned only be participating in Stock Lending Scheme.

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Does not move balances in account without account holders 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

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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.

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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

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REGULARTORY ENVIRONMENT DETAILS

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REGULATORY ENVIRONMENT DETAILS

LEGISLATION The four main legislations governing the securities market are: (a) The Securities Contracts (Regulation) Act, 1956, preventing transactions in securities by regulating the business of dealing insecurities (b) The Companies Act, 1956, which is a uniform law relating to companies throughout India (c) The SEBI Act, 1992 for the protection of interests of investors and for promoting development of and regulating the securities market, and (d) The Depositories Act, 1996 which provides for electronic maintenance and transfer of ownership of dematerialized securities. RULES AND REGULATIONS The Government has framed rules under the SCRA, SEBI Act and the Depositories Act. prevention of SEBI has framed regulations under the SEBI Act and the unfair trade practices, insider trading, etc. Under these Acts, The self-regulatory organizations depositories Act for registration and regulations of all market intermediaries, for Government and SEBI issue notification, guidelines, and circulars which need to be compiled with by market participants. (SROs) like Stock Exchanges have also laid down their rules.

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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. The responsibility for regulating the securities markets shared by Department of Economic Affairs (DEA), Department of Company Affairs (DCA), Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI) and Securities Appellate Tribunal (SAT).

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OBJECTIVES OF SEBI
The promulgation of the SEBI ordinance in the parliament gave status to SEBI in 1992. According to the preamble of the SEBI, 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, share transfer agents, bankers to the issue, trustees of trust deed, registrars to am issue, merchant bankers, underwriters, portfolio managers, investment advisers and such other intermediaries who may be associated with securities market in any manner. 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, undertaking inspection, conducting enquiries and audits of the stock exchanges, intermediaries and self-regulatory organizations in the securities market. 45

REGISTRATION OF INTERMEDIARIES:
The intermediaries with securities market shall buy, sell or deal in securities after obtaining of registration from SEBI, as required by section 12: 1. Stock-broker 2. Sub-broker 3. Share transfer agent 4. Banker to an issue 5. Trustee of the trust deed 6. Registrar to an issue 7. Merchant banker 8. Underwriter 9. Portfolio manger 10. Investment advisor 11. Depository 12. Depository participant 13. Custodian of securities 14. Foreign institutional investor 15. Credit rating agency 16. Collective investment schemes 17. Venture capital funds 18. Mutual funds 19. Any other intermediary associated with the securities market

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COMPETITORS DETAILS

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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

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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, UTI, ICICI, LIC, GIC and its subsidiaries, IFCI and IIBI. SHCIL was incorporated as a public limited company on July 28, 1986. SHCIL provides depository, post trading, custodial services,

securities lending, to institutional investors and retail investors. Other auxiliary services provided by SHCIL include derivatives clearing, PF fund accounting, SGL constituent account services, mutual funds and other capital market instruments distribution

MOTILAL OSWAL

The company came into existence in 1987 with small business house. The following are the function of the motilal Oswal

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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 They have registered themselves with NSE and do the functions of Derivatives market, commodity market, cash market ICICI BANK

ICICI Bank is India's second-largest bank with total assets of about Rs.1,67,659 crores at March 31, 2005 and profit after tax of Rs. 2,005 crores for the year ended March 31, 2005 (Rs. 1,637 crores in fiscal 2004). ICICI Bank has a network of about 560 branches and extension counters and over 1,900 ATMs. 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, life and non-life insurance, venture capital and asset management. 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. ICICI Bank currently has subsidiaries in the United Kingdom, Canada and Russia, branches in Singapore and Bahrain and representative offices in the United States, China, United Arab Emirates, Bangladesh and South Africa.

SHAREKHAN

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Sharekhan is an equities focused organization tracing its lineage to SSKI, a veteran

equities solutions company with over 8 decades of experience in the Indian stock markets.

In the stock markets. Sharekhan does not claim expertise in too many things.
Sharekhan's expertise lies in stocks and that's what he talks about with authority. 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, it is something that is spoken with years of focused learning and experience

Sharekhan brings a user- friendly online trading facility, coupled with a wealth of content that will help investors stalk the right shares. UTI BANK

UTI BANK is a registered member (Depository Participant) of NSDL. Indias first depository. We can avail all of the depository-related services by just opening an account with NSDL through UTI Bank. UTI Bank provides services like dematerialization of shares,

rematerilialization, pledge-Hypothecation, freezing/ locking Of Accounts, transfer of shares and settlements, receipt of corporate benefits, holdings & transaction statements on email, tele depository services.

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MARWADI SHARES AND FINANCE PRIVATE LIMITED

Marwadi Shares And Finance Pvt. Ltd.

Was incorporated in

1992.Marwadi Group servicing more than 75000 clients, more than 554 pin codes. The company ranked among top 50 broking houses. It has 250 franchisee / sub-brokers and authorized persons network. CENTURION BANK

Centurion Bank, as its very positioning suggests, has an extensive network of branches across India. And each of these branches are harnessed to state of the art technologies to offer unparallel customer service. But of course, we go way beyond merely offering our valued customers technology driven solutions. Centurion Bank constantly endeavors to offer customized services that are driven by customer requirements rather than just exhibiting technological prowess. Among Centurion Banks greatest strengths is the fact that it is a professionally managed bank with a globally experienced management team. They provide services like Personal Banking, Retail Loans, NRI Services, Demat, Cash Management, e PAY solutions

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HDFC (HOUSING DEVELOPMENT FINANCE CORPORATION)

HDFC was found over two decades ago, in 1977, their solution for success is customer satisfaction. They think All you need is the courage to innovate, the skill to understand your clientele and the desire to give them your best. Today, over a million satisfied customers whose dreams are realize by HDFC, stand testimony to their success. Their objective, from the beginning, has been to enhance residential housing stock and promote home ownership. Now, their offerings range from hassle-free home loans and deposit products, to property related services and a training facility. They also offer specialized financial services to their customer base through partnerships with some of the best financial institutions worldwide. KOTAK SECURITIES

Kotak Securities, an affiliate of Kotak Mahindra Bank, is the stockbroking and distribution arm of the Kotak Mahindra Group. The institutional business division, which brings you AKSESS, primarily covers secondary market broking. It caters to the needs of foreign and Indian institutional investors in Indian equities (both local shares and GDRs, Global Depository Receipts). The

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division also has a comprehensive research cell with sectorial analysts covering all the major areas of the Indian economy.

The group a net worth of over Rs.1, 550 crores and employs over 3,000 employees in its various businesses. With a presence in 59 cities in India and offices in New York, London, Dubai and Mauritius, it services a customer base of over 5, 00,000 Kotak Mahindra has partnerships with Goldman Sachs (one of the world's largest investment banks and brokerage firms), Ford Credit (one of the world's largest dedicated automobile financiers) and Old Mutual (a large insurance, banking and asset management conglomerate).

Pranav Securities

Pranav Securities is India's first ISO 9001: 2000 certified broking house. A Rs. 120 mn. Net worth among the better capitalized houses in the industry. A fully professional, young and dynamic organization promoted by Mr. Pranav M. Shah and the Sonex Group of Hong Kong presence on all the leading exchange segments on the cash and Derivative markets. Expertise in cross border ADR/GDR trades and servicing FIIs special understanding of the particular needs of OCBs and NRIs. Track record of profitable ideas fro our clients with research inputs that are widely quoted in local and international print/electronic media. A veritable galaxy of research products catering to different time horizons and investment needs.

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MERRILL LYNCH

Merrill Lynch is one of the worlds leading financial management and advisory companies, with offices in 36 countries and total client assets of approximately $1.6 trillion, at the end of 2004. Merrill Lynch has three core businesses Global Private Client, Global Markets & Investment Banking Group and offering a range of services for private clients, small businesses, institutions and corporations, and financial intermediaries Merrill. As an investment bank, the company is a leading global underwriter of debt and equity securities and strategic advisor to corporations, governments, institutions and individuals worldwide. Through Merrill Lynch Investment Managers, the company is one of the worlds largest managers of financial assets, with assets under management of $501 billion at the end of 2004.

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BAJAJ CAPITAL

Bajaj Capital is SEBI approved merchant bankers, investment advisors and financial planners. 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.

ANAGRAM SECURITIES

Anagram Securities is the part of the Rs. 2000 crores Lalbhai Group. It was found in 1993 and is a member of the National Stock Exchange. Last year their trading crossed Rs. 17000 crores with around 5000 people making. They are dealing only in Stock Market and nothing else. Though they are doing good research work regarding companies and market which will be the beneficial to the investors. Gujarat state is one of the most important fields of their business. And they have about 30 branches throughout Gujarat

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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 stock broking offers real-time prices, detailed data and news, intelligent analytics, and electronic trading capabilities, right at your fingertips. This powerful technology is complemented by our knowledgeable and customer focused Relationship Managers. Angels Relationship Managers are available to you to help with your financial planning and investment needs. To provide the highest possible quality of service. Angel provides full access to all products and services through multichannels. Services provided are as below Equities & Derivatives Depository Services Commodities Mutual Funds IPOs

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Equities & Derivatives and Commodities:

Our Retail Equity Business caters to the needs of individual Indian and Non Resident Indian (NRI) investors. Angel offers broker assisted trade execution, automated online investing and access to all IPOs. 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. (NSEIL). The Stock Exchange, Mumbai (BSE), NCDEX and MCX.

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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. Angel performs clearing services for all securities transactions platform execute trades through Angel Securities and settle these transactions through the Angel Depository Services. 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.

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RESEARCH

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PROBLEM FORMULATION
Research being a logical process definitely follows predetermined or steps in order to obtain the desired results or outcomes. Though the entire process of research is quite complex and requires a considerable degree of knowledge and skill, the step of problem formulation is most challenging and critical one for the researcher as well as the research. It is rightly said that a problem, well defined is half solved. The Research topic undertaken by me is Study of the Investment Pattern of an investor towards various investment alternatives available before him.

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Research Objective
Any activity done without any objective cannot turn fruitful. An objective provides a specific direction to an activity. Objectives may range from very general to very specific, 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. 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. However following are the sub objectives. To identify the investor preference towards various investment

alternatives. To identify whether the investor is a risk taker or seeks safety of his funds. What is the ratio of his risk & return? To identify the short term or long term investor.

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RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY
A research design is a pattern or an outline of a research projects workings. It is a statement of only the essential elements of a study, those that provide the basic guidelines for the details of the project. If there were no research design, the research would have only foggy notion about what is to be done. There are numerous specific designs, which can be classified into three broad categories. Descriptive Design Quasi Experimental Design Experimental Design

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Descriptive Design: These designs have its name because they describe a phenomenon without establishing association between the factors. Hence these designs are utilized when a need is to produce accurate description of variables. Quasi Experimental Design: These designs as the name implies lacks the vigorous qualities of real experiments particularly valid demonstration of variable association. Still they are not descriptive ones. Experimental Design: These designs are intended to demonstrate cause and effect relationship such designs can measure communicate variation i.e. degree of change in one variable y when another variable x is changed.

In context of my project study In context of my project study my research design would be descriptive design.

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DATA COLLECTION METHOD

Data collection procedure is carried out in order to know the exact information for the research work. 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. For this utmost accurate information can be gathered by means of questionnaire only. So, questionnaire is my tool for data collection.

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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.

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DATA ANALYSIS AND INTERPRETATION

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INVESTMENT IN VARIOUS ALTERNATIVES

Commodities Real estate 8% 5%

M.F. 20%

Stock market 45%

Govt.Sec. 22%

Chart- 2
From above graph it is observed that 45% of the people invest in the stock market, after that Government Securities is the second preferred investment alternative and Mutual Fund is the third preference for investment and Commodities Market is the least preferred investment alternative amongst all investment alternatives. Nowadays, more and more investors are investing in the stock market and awareness and knowledge of stock market is increasing by leaps and bounce 69

whereas commodities market in India is not yet preferred by the Investors compare to other alternatives like Mutual Fund, Government Securities, Real Estate etc.

INVESTMENT CRITERION

Safety of funds Other 2% 8% Liquidity 25% Good return 45% Quick return 20%

Chart- 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, 20% of the investor wants quick return from their investment while 8% of the investor wants safety of their funds.

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PREFERENCE IN MUTUAL FUND SCHEME

Both 14%

Close - ended 29%

Open - ended 57%

Chart- 4
The above chart depicts that open ended scheme is highly preferable amongst the Mutual Fund investors. 57% of the Mutual Fund investors prefer to invest in Open- 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. 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.

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INVESTMENT IN GOVERNMENT SECURITIES

Post -office Deposits 21% N.S.C. 6% Government Bonds 9%

Other 2%

K.V.P. 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, after that K.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.S.C. ( National Saving Certificate) 6% of the investors are investing money.

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INVESTMENT IN REAL ESTATE

Both 22%

Land 45% Building&Infrast ructure 33%

Chart- 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.

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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.

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INVESTMENT IN MCX

Crude - Oil 10% Silver 20%

Other 4%

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%.

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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%.

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TYPE OF INVESTOR IN STOCK MARKET

Both 45%

Investor 33%

Trader 22%

Chart- 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.

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PARAMETERS CONSIDERED BEFORE INVESTING IN ANY COMPANY

Market capital 10% Company image 26%

Other 3%

Profitability 44%

E.P.S. 17%

Chart- 11
The above chart depicts the parameters which the investor considers before investing into particular script of the company. 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.P.S. with 17% and market capital 10%.

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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.

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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. 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.

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TRADING PATTERN OF TRADER IN STOCK MARKET

Both 40%

Intraday 22%

Other 5%

Future & Option 33%

Chart- 14
The above chart depicts the trading pattern of a trader who is investing for a shorter period of time in the stock market. 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%.

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TRADERS RISK & RETURN RATIO

Moderate Risk&Moderate Return 29%

Other 7% High Risk& High Return 43%

Low Risk& Low Return 21%

Chart- 15
The above chart depicts the ratio between the risk & return of a trader in a Stock Market. 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.

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EDUCATIONAL DETAILS OF THE RESPONDENTS

Other 29%

Under Graduate 48% Post Graduate 23%

Chart- 16
The chart shows the educational background of the respondents. 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, 10th etc.

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INCOME (MONTHLY) OF RESPONDENTS

<35,000 12% 25,000-35,000 18%

>10000 26%

10,000-25,000 44%

Chart- 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- 25,0000 while 26% of them belong to the class of <10,000 whereas 18% of the respondents belong to the class of 25,000-35,000 and 12% belong to the class of >35,000 per month. of them

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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.

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FINDINGS
It has been noticed that more and more no. of people are now investing in the stock market compare to other investment alternatives Mutual Fund, Government Securities, Real Estate, Commodities market etc. The prime criteria of an investor regarding investment are good return after that liquidity comes second. In Mutual fund the investor prefers open ended scheme more than close ended scheme. In Government securities investors first preference is Fixed Deposits than K.V.P. (Kishan Vikas Patra) comes. In Real Estate Land is the favourite investment alternative for Investor.

In Commodities market Investor trades more in MCX compare to NCDEX

In MCX investors trade mostly in Gold.

In MCDEX market investor trade most in Wheat

In Indian Stock Market investor are more of both the types i.e. Investor & Trader compare to either Investor or Trader

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The Investor before investing into any company first factor he considers the profitability of the company.

The investors buying decision is highly influenced by the Advice / Tips from the broking house

More no. of investors are working on the strategy of booking the Profit.

More no of traders are doing trading in both the patterns i.e. Intra day & F.O. (Future & Options.)

Most of the trader believes in the ratio of high risk & high return

More no. of respondents belong to the under graduate educational background

Most no. of the respondents belong to the income (per month) level 10,000-25,000

Most no. of the respondents belongs to the middle class.

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LIMITATIONS
Due to limitation of time and cost constraints a sample size of only 100 respondents is chosen. This research is done within the Jamnagar city only therefore findings and suggestion given on the basis of this research cannot be considered for the entire universe. Data analysis and interpretation done may not be that strong due to small sample size. The information given by the respondent may not be 100% genuine.

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CONCLUSION
It has been noticed that more and more no. of investors are now preferring Stock Market as an investment alternative compare to another investment avenues. The scenario of Indian stock market has been changed compare to what it used to be in past. 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. It has been now seen as an investment avenue compare to earlier when people used to believe that Stock Market is highly risky. Most of the investor in stock market takes the buying decision from the advice / tips from the broking house. The awareness level and knowledge of stock market has been increasing by leaps and bounce

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 trading.

Professional and Business class, which is considered to be the most knowledge class, prefers stock market as an investment tool rather than doing

The investor prefers Stock Market more because of Good return and highly liquidity.

Due to the uncertainty of return and various scams most of the Investors do not prefer Stock Market as an investment alternative.

The trader in the stock market believe in taking the more risk and they believe in the ratio of high risk & high return.

Most of the investor preferring land as an investment alternative mainly due to tax saving purpose.

The investor in Mutual Fund prefers open ended scheme than close ended scheme.

The Investor possess less knowledge of Commodity Market compare to Stock Market

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RECOMMENDATIONS
The awareness and knowledge amongst the investors is less regarding the investment alternatives available before him. So, the company should conduct various seminars and presentation to guide the investor and increase their knowledge. Company should concentrate more on its Marketing Department

The high employee turn over is a big concern for the company. 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.

The company should also try to come out with some new products which are not yet launched in the market. This is possible with some Research and Development. So company should spend on R & D.

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QUESTIONNAIRE:
Dear respondents I am conducting a survey on To Study the Investment Pattern of an investor towards various investment alternatives available before him. Kindly corporate in my research by giving genuine answers. 1. Where do you invest your money? Mutual fund Government securities Stock market Commodities Real estate / Properties Other 2. What is your investment criterion? Good return Quick return Liquidity Safety of funds Other 3. If you are investing in mutual fund then in which scheme do you prefer? Open-ended scheme Close-ended scheme Both of the above

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4. If you are investing in Government securities where do you invest your money? K.V.P. Fixed deposits N.S.C. Post office deposits Government Bonds Other 5. If you are investing in real estate where do you invest your money? Land Building & Infrastructure Both of the above

6. If you are trading in Commodity then in which market do you trade? MCX NCDEX Both 7. If you are investing in MCX then in which commodity do you trade most? Copper Gold Silver Crude-oil Other 8. If you are investing in NCDEX then in which commodity do you trade most? Wheat Kapas Channa Ziru Other 9. If you are investing in stock market what type of investor you are? Investor Trader Both of the above 10. Which parameters you look before investing in a particular company?

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Profitability position EPS Image Market capital Other 11. 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. If you are trader then what is your trading pattern? Intraday Future & Option Both of the above Other 14. 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. Personal Information Name: Education: Under Graduate Post Graduate Under 12 Other _______________________________________________

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Social Class: Upper class Middle class Lower class Income (monthly): <10,000 10,000 25,000 25,000 -35000 >35,000

LIST OF CHARTS
Sr. No, 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 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 How investors take buying decision in Stock Market? Investors return criteria Page No. 18 70 71 72 73 74 75 76 77 78 79 80 81

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14. 15. 16. 17. 18.

Traders trading pattern in Stock Market Return criteria of Trader in Stock Market Educational classification of respondents Income (monthly) of respondents Social Class of respondents

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. His trading period can be ranged from 1 day to 1 month. A trader is usually a more risk taker. Investor: An Investor is a person who invest long term in the stock market compare to trader. An investor is one who does delivery based buying in stock market. He can invest for a period ranging from 1 day to 5 to 10 years according to his liking. MCX & NCDEX: MCX & NCDEX are the two segments of the Commodity market in which investor can trade according to his liking. Book profit:

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Booking of profit means that an investor / trader sales the securities after earning a reasonable return. Liquidity: Liquidity means the investors has the convenience of selling his investment any time and avail his money as and when he needed and the investors money is not blocked for a certain period of time.

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. 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. In between he can sale the shares according to his liking but the maximum holding period is last Thursday of the month.

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. At the end of the day he has to settle his trade.

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BIBLIOGRAPHY

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WEBSITE VISITED FOR THE PROJECTS

www.angeltrade.com.

www.nseindia.com

www.moneycontrol.com

www.sebi.gov.in

www.researchguru.com

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