A Report On Analytical Study on Investor Preference With Respect To Increasing Trend in Share Market y !

arun "hunna
UNIVERSITY ROLL NO. 80104317059

M A #$$%&#$'$ A Report su()itted in Partial fulfill)ent of the re*uire)ents of P+ PRO+RAM P,-. T/01-I0A2 ,-I!/RSIT3

ACKNOWLEDGEMENT
This research 4ould not have (een possi(le 4ithout the )onu)ental support fro) Rel !"#e M$"e% L&'5 Of course6 ulti)ately such help co)e fro) people5 I 4ould like to thank Reliance Money 2td5 for giving )e the approval to do this pro7ect in the organi8ation5 It is a great pleasure to ackno4ledge the support of M(. S)!*& S)!(+! 90enter Manager:5 1e 4as there every step of the 4ay5 I have learnt a lot fro) hi) a(out share )arket5 I 4ant to thank all the respondents 4ho provided )e ti)e and infor)ation for )y pro7ect and at the sa)e ti)e ne4 e;periences in day to day life5 I thank )y faculty guide M(. ,!(- "'e( S ".) 4ho help )e out at every critical point and gave )e his valua(le advice to solve pro(le)s5 I 4ant to give )y special thanks to all faculty )e)(ers of +5+5-5I5M5T for providing )e opportunity to 4ork on this pro7ect5 2ast (ut not the least I a) very thankful to +5+5-5I5M5T as this institute provided )e an opportunity to co)e into this field and do training in Reliance Money 2td5

VARUN D/UNNA

DECLARATION

I here (y declare that this pro7ect 4ork entitled Analytical Study on Investor Preference With respect To Increasing Trend in Share Market is )y 4ork6 carried out under the guidance of )y <aculty guide Mr5 Parvinder Singh and )y co)pany guide Mr5 Shakti Shar)a5 This report neither full nor in part has ever (een su()itted for a4ard of any other degree of either this university or any other university5

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,RE0ACE

This pro7ect report pertains to the )aking of a TRAINING $1 M.2.A. #3(( #3l3+. The P,RPOS/ of this pro7ect is to )ake the students to have thorough kno4ledge of the topics given to the)5 I learned a lot fro) the hard 4ork I put in to collect infor)ation regarding the sa)e6 4hich 4ould (e of great use in )y near future as a professional5 .ustification cannot (e done to 4hatever I have learnt 4ithin a fe4 pages (ut I have still tried )y (est to cover as )uch as possi(le a(out Analytical study of investor perception towards increasing trend in share market in this report5 eing students of Masters in environ)ent5 usiness Ad)inistration6 4e need to (e a4are of the organi8ational internal?e;ternal

TA2LE O0 CONTENTS
Introduction Share )arket? stock )arket Mutual fund Research o(7ective Research )ethodology "ata Analysis 4ith Interpretations <indings Reco))endations 2i)itations i(liography @uestionnaire

INTRODUCTION
/ISTORY O0 ADA GROU,
0$3"'e(4 M(. D) (35)! A+5!" "hiru(hai A)(ani the )ost cherished 4as perhaps IndiaAs greatest 4ealth creator5 In one lifeti)e6 he (uilt6 starting fro) the prover(ial scratch6 IndiaAs largest private sector enterprise5 When "hiru(hai e)(arked on his first (usiness venture6 he had a seed capital of (arely ,SB >$$ 9around Rs '=6$$$:5 Over the ne;t three and a half decades6 he converted this fledgling enterprise into su) of Rs C$6$$$ crore colossus an achieve)ent 4hich earned Reliance a place on the glo(al <ortune D$$ list6 the first ever Indian private co)pany to do so5 ,nder "hiru(hai e;traordinary vision and leadership6 Reliance scripted one of the greatest gro4th stories in corporate history any4here in the 4orld6 and 4ent on to (eco)e IndiaAs largest private sector enterprise5

When "hiru(hai A)(ani died6 his (oth sons 9Mukesh "hiru(hai A)(ani E Anil "hiru(hai A)(ani: launched into very pu(lic (attle6 4hich spanned the seven )onths5 <inally6 on .une )other6 Fokila(en "5 A)(ani6 announced a '%6 #$$D their past a (itter and

HISTORY OF GR

settle)ent (et4een the)5 After this state)ent the e)pire 4as divided (et4een the)5 So the e)pire 4hich 4as given to Anil "hiru(hai A)(ani ca)e to (e kno4n as A"A group

INTRODUCTION TO COR,ORATE

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To build a global enterprise for all our stakeholders, and a great future for our country6 to give )illions of young Indians the po4er to shape their destiny6 the )eans to reali8e their full potentialG

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Our Mission is to keep the custo)er satisfaction as focus point of all our operations6 adopt the (est international practices in under4riting6 clai)s and custo)er service6 (e the )ost innovative in product develop)ent6 esta(lish presence all over India6 ensure sustained value addition to all stake holders and to uphold 0orporate !alue E 0orporate +overnance5

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The Reliance H Anil "hiru(hai A)(ani +roup is a)ong IndiaAs top three private sector (usiness houses on all )a7or financial para)eters6 4ith a )arket capitali8ation of Rs5>#D6$$$ crores 9,SB %' (illion:6 net assets in e;cess of Rs5''D6$$$ crores 9,SB #I (illion:6 and net 4orth to the tune of Rs5DD6$$$ crores 9,SB '= (illion: Across different co)panies6 the group has a custo)er (ase of over '$$ )illion6 the largest in India6 and a shareholder (ase of over '# )illion6 a)ong the largest in the 4orld5 Through its products and services6 the Reliance & A"A +roup touches the life of ' in '$ Indians every single day 5It has a (usiness presence that e;tends to over =6D$$ to4ns and >$$6$$$5villages in India and D continents across the 4orld5 The interests of the +roup range fro) co))unications 9Reliance 0o))unications: and financial services 9Reliance 0apital 2td:6 to generation6 trans)ission and distri(ution of po4er 9Reliance /nergy:6 infrastructure and entertain)ent5 Within a year of its (irth as a result of de)erger of Reliance Industries6 Anil "hiru(hai A)(ani +roup 9A"A+: had gone for a corporate i)age )akeover6 unveiling a ne4 logo and signature tune in line 4ith its custo)er interface5 The group has allocated appro;i)ately Rs5 'D$ crore for the corporate advertise)ent fil)6 4ith the the)e line6 JThink (iggerK Think (etterJ6 in televisions and other )edia outlets5

According to Anil A)(ani6 the corporate )akeover presents the group 4ith the opportunity Lto get closer to our ne4 identity6 to reflect on the philosophy (ehind it6 and to cele(rate the spirit of tea)4ork that lies at the heart of it5L

-e4 corporate colors (lue and red convey values of integrity6 confidence6 energy and passion555 Reliance Ape; is an e)(odi)ent of hope6 opti)is) and success5 A(out the 0hair)anM Mr5 Anil " A)(ani Regarded as one of the fore)ost corporate leaders of conte)porary India6 Mr5 Anil " A)(ani6 =%6 is the chair)an of all listed co)panies of the Reliance A"A +roup6 na)ely6 Reliance 0o))unications6 Reliance 0apital6 Reliance /nergy and Reliance -atural Resources5 He is also the president of the Dhirubhai
Ambani Institute of Information and Communications Technology, Gandhinagar

An M A fro) the Wharton School of the ,niversity of Pennsylvania6 Mr5 A)(ani is credited 4ith pioneering several financial innovations in the Indian capital )arkets5 1e spearheaded the countryAs first forays into overseas capital )arkets 4ith international pu(lic offerings of glo(al depositary receipts6 converti(les and (onds5 ,nder his chair)anship6 the constituent co)panies of the Reliance A"A group have raised nearly ,SB > (illion fro) glo(al financial )arkets in a period of less than 'D )onths5 Mr5 A)(ani has (een associated 4ith a nu)(er of prestigious acade)ic institutions in India and a(road5 /e 6 #3((e"&l% ! +e+5e( $14 oard of +overnors6 Indian Institute of Manage)ent 9IIM:6 Ah)ada(ad oard of +overnors6 Indian Institute of Technology 9IIT:6 Fanpur /;ecutive oard6 Indian School of usiness 9IS :6 1ydera(ad Wharton oard of Overseers6 the Wharton School6 ,SA

In .une #$$=6 Mr5 A)(ani 4as elected as an Independent )e)(er of the Ra7ya Sa(ha H ,pper 1ouse6 Parlia)ent of India6 a position he chose to resign voluntarily on March #D6 #$$C5

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Selected (y Asia 4eek )aga8ine for its list of J2eaders of the Millenniu) in usiness and <inanceJ and 4as introduced as the only Jne4 heroJ in usiness and <inance fro) India6 .une 'III A4arded the <irst Wharton Indian Alu)ni A4ard (y the Wharton India /cono)ic <oru) 9WI/<: in recognition of his contri(ution to the esta(lish)ent of Reliance as a glo(al leader in )any of its (usiness areas6 "ece)(er #$$' 0onferred JThe /ntrepreneur of the "ecade A4ardJ (y the Manage)ent Association6 Octo(er #$$# 0onferred Nthe 0/O of the 3ear #$$=A in the Platts +lo(al /nergy A4ards !oted the N est role )odelA a)ong (usiness leaders in the (iannual Mood of the -ation poll conducted (y India Today )aga8ine6 August #$$C !oted Nthe usiness)an of the 3earA in a poll conducted (y The Ti)es of India H T-S6 "ece)(er #$$C o)(ay

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S)!(e)$l'e( I"&e(e6& We value the trust of shareholders6 and keep their interests para)ount in every (usiness decision 4e )ake6 every choice 4e e;ercise ,e$7le C!(e We possess no greater asset than the *uality of our hu)an capital and no greater priority than the retention6 gro4th and 4ell&(eing of our vast pool of hu)an talent C$"63+e( 0$#36 We rethink every (usiness process6 product and service fro) the standpoint of the consu)er H so as to e;ceed e;pectations at every touch point E:#elle"#e " E:e#3& $" We (elieve in e;cellence of e;ecution H in large6 co)ple; pro7ects as )uch as s)all everyday tasks5 If so)ething is 4orth doing6 it is 4orth doing 4ell5 Te!+ W$(* The 4hole is greater than the su) of its partsK in our rapidly&changing kno4ledge econo)y6 organi8ations can prosper only (y )o(ili8ing diverse co)petencies6 skill sets and e;pertiseK (y i)(i(ing the spirit of thinking together && integration is the rule6 /scalation is an e;ception ,($!#& -e I""$-!& $"

We nurture innovation (y (reaking silos6 encouraging cross&fertili8ation of ideas E fle;i(ility of roles and functions5 We create an environ)ent of accounta(ility6 o4nership and pro(le)&solving H(ased on participative 4ork ethic and leading&edge research Le!'e(6) 7 5% E+7$8e(+e"& We (elieve leadership in the ne4 econo)y is a(out consensus (uilding6 a(out giving up controlK a(out ena(ling and e)po4ering people do4n the line to take decisions in their areas of operation and co)petenceG S$# !l Re67$"6 5 l &% We (elieve that organi8ations6 like individuals6 depend on the support of the co))unity for their survival and sustenance6 and )ust repay this generosity in the (est 4ay they can.

C$+7!" e6 3"'e( ADA .($37 Reliance Capital

Reliance 0apital is one of IndiaAs leading and fastest gro4ing private sector financial services co)panies6 and ranks a)ong the top > private sector financial services and (anking co)panies6 in ter)s of net 4orth5 The co)pany has interests in asset )anage)ent and )utual funds6 life and general insurance6 private e*uity and proprietary invest)ents6 stock (roking and other activities in financial services5

Reliance Communications Limited

The flagship co)pany of the Reliance H A"A +roup6 Reliance 0o))unications 2i)ited6 is the reali8ation of our founderAs drea) of (ringing a(out a digital revolution that 4ill provide every Indian 4ith afforda(le )eans of co))unication and a ready access to infor)ation5 The co)pany (egan operations in 'III and has over =% )illion su(scri(ers today5 It offers a co)plete range of integrated teleco) services5 These include )o(ile and fi;ed line telephonyK (road(and6 national and international long distance services6 data services and a 4ide range of value added services and applications ai)ed at enhancing the productivity of enterprises and individuals5

Reliance Infrastructure Ltd

It is not only IndiaAs largest private sector enterprise in po4er utility (ut also the largest private sector player in )any other infrastructure sectors of India5 In the po4er sector 4e are involved in generation6 trans)ission6 distri(ution and trading of electricity and constructing po4er plants as /P0 partners5 In the infrastructure space the co)pany is focused on roads6 ur(an infrastructure 4hich includes MRTS6 Sea link and Airports6 Specialty Real /state 4hich includes (usiness districts6 trade to4ers6 convention centre and S/O 4hich includes IT E IT/S S/O and non IT S/O as 4ell as free trade 8ones5

Reliance Health
In a country 4here healthcare is fast (eco)ing a (oo)ing industry6 Reliance 1ealth is a focused healthcare services co)pany ena(ling the provision of solution to Indians6 at afforda(le prices5 The co)pany ai)s at providing integrated health services that 4ill co)pete 4ith the (est in the 4orld5 It also plans to venture into diversified fields like Insurance Ad)inistration6 1ealth care "elivery and Integrated 1ealth6 1ealth Infor)atics and Infor)ation Manage)ent and 0onsu)er 1ealth5 Reliance Health aims at re olutioni!ing healthcare in India by enabling a healthcare en ironment that is both affordable and accessible through partnerships "ith go ernment and pri ate businesses.

Reliance Media

!ntertainment

As part of the Reliance & A"A +roup6 Reliance /ntertain)ent is spearheading the +roupAs foray into the )edia and entertain)ent space5 The key content initiative are across Movies6 Music6 Sports6 +a)ing6 Internet E )o(ile portals6 leading to direct opportunities in delivery across the

e)erging digital distri(ution platfor)sM digital cine)a6 IPT!6 "T1 and Mo(ile T!5 Reliance A"A +roup ac*uired Adla(s <il)s 2i)ited in #$$D6 one of the largest entertain)ent co)panies in India6 4hich has interests in fil) processing6 production6 e;hi(ition E digital cine)a5 Reliance /ntertain)ent has )ade an entry into the <M Radio (usiness through Adla(s Radio 4445(igI#Pf)5co) having 4on =D stations in the recent (idding6 I+ I#5P <M is already IndiaAs largest private <M radio net4ork 4ith '# radio stations across the country as on #%th <e(ruary #$$P6 4ith )any )ore to (e launched in the co)ing )onths5

Reliance "ower
Reliance Po4er 2i)ited is part of the Reliance Anil " A)(ani +roup and is esta(lished to develop6 construct and operate po4er pro7ects do)estically and internationally5 The 0o)pany on its o4n and through su(sidiaries is currently developing '> )ediu) and large si8ed po4er pro7ects 4ith a co)(ined planned installed capacity of #%6#$$ MW6 one of the largest portfolios of po4er generation assets under develop)ent in India5 Our

'> po4er pro7ects are planned to (e diverse in geographic location6 fuel type6 fuel source and off&take6 and each pro7ect is planned to (e strategically located near an availa(le fuel supply or load center5 The identified pro7ect sites are located in 4estern India 9'#6##$ MW:6 northern India 9I6$%$ MW: and northeastern India 9#6I$$ MW: and southern India 9=6$$$ MW:5 They include si; coal&fired pro7ects 9'=6C#$ MW: to (e fueled (y reserves fro) captive )ines and supplies fro) India and a(road6 t4o gas&fired pro7ects 9'$6#%$ MW: to (e fueled pri)arily (y reserves fro) the Frishna +odavari asin 9the LF+ asinL: off the east coast of India6 and four hydroelectric pro7ects 9>6>$$ MW:6 three of the) in Arunachal Pradesh and one in

,ttarakhand5 Reliance Po4er has ac*uired the t4o ultra )ega po4er pro7ects of =6$$$ MW each at Sasan in Madhya Pradesh and Frishnapatna) in Andhra Pradesh5 The P6=%$ MW pro7ect to (e located at "adri in ,ttar Pradesh is e;pected to (e the largest gas&fired po4er pro7ect at a single location in the 4orld5 We intend to sell the po4er generated (y these pro7ects under a co)(ination of long&ter) and short&ter) PPAs to state& o4ned and private distri(ution co)panies and industrial consu)ers5

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Rel !"#e C!7 &!l Address ;Re. 6&e(e' O11 #e< 1& lock6 'st <loor6 "hiru(hai A)(ani Fno4ledge 0ity "istrict -e4 Mu)(ai State6 Maharashtra6 =P$$'$ Tel5 -o5 <a; -o5 /)ailM Rel !"#e C$++3" #!& $" AddressM Tel5 -o5 $##&>$>#P$$$ $##&>$>#P#$# rcl5investorQrelianceada5co) 9C$(7$(!&e O11 #e<

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Reliance 0apital 2td is a part of the Reliance & Anil "hiru(hai A)(ani +roup6 and is ranked a)ong the #D )ost valua(le private co)panies in India5 Reliance 0apital is one of IndiaJs leading and fastest gro4ing private sector financial services co)panies6 and ranks a)ong the top > private sector financial services and (anking groups6 in ter)s of net 4orth5 Reliance 0apital has interests in asset )anage)ent and )utual funds6 life and general insurance6 private e*uity and proprietary invest)ents6 stock (roking6 depository services6 distri(ution of financial products6 consu)er finance and other activities in financial services5 The Reliance Anil "hiru(hai A)(ani +roup is one of IndiaJs top # (usiness houses6 and has a )arket capitali8ation of over Rs5#6I$6$$$ crore 9,SB PD (illion:6 net 4orth in e;cess of Rs5DD6$$$ crore 9,SB '= (illion:6 cash flo4s of Rs5 ''6$$$ crore 9,SB #5% (illion: and net profit of Rs5 P6P$$ crore 9,SB '5I (illion:

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A+ &!5) >)3"9)3"8!l! ;V #e?C)! (+!"< Mr5 A)ita(h .hun7hun4ala 4as appointed !ice 0hair)an on March #$6 #$$C5 1e is a "irector on the Reliance A"A +roup Pvt5 2td5 R!9e"'(! C) &!le ;I"'e7e"'e"& D (e#&$(< Mr5 Ra7endra 0hitale6 1e is a "irector on (oards of the 1indu7a TMT 2i)ited6 A)(u7a 0e)ent 2i)ited6 and Reliance +eneral Insurance 0o)pany 2td5 C. ,. >! " Mr5 05P5 .ain6 C'6 is the for)er 0hair)an and Managing "irector of -TP0 2td5 9-ational Ther)al Po4er 0orporation:5 oard of 1ar)ony Art <oundation and

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Reliance Money is pro)oted (y Reliance 0apitalK one of IndiaJs leading and fastest gro4ing private sector financial services co)panies6 ranking a)ong the top > private sector financial services and (anking co)panies6 in ter)s of net 4orth5 Reliance 0apital is a part of the Reliance Anil " A)(ani +roup5 Reliance Money 4hich co))enced co))ercial operations in April #$$P has over >$$6$$$ custo)ers and =6>$$ outlets in )ore than >6D$$ locations across India5 As on March >'6 #$$%6 Reliance Money had a distri(ution net4ork of over %6D$$ outlets in over =6#D$ locations Thus6 Reliance Money provides a co)prehensive platfor)6 offering an invest)ent avenue for a 4ide range of asset classes5 Its endeavor is to change the 4ay India transacts in financial )arket and avails financial services5 Reliance Money offers a single 4indo4 facility6 ena(ling you to access a)ongst others6 /*uities6 /*uity and 0o))odity derivatives6 Offshore Invest)ents6 IPOAs6 Mutual <unds6 2ife Insurance and +eneral Insurance products5 Advantages of the Reliance money

 0ost /ffective 0onvenience Security token Single Windo4 for Multiple Products > in ' Integrated Access "e)at Account 4ith Reliance 0apital It also offers ne4s fro) the "OW .O-/S and R/,T/RS5

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C$++$' &%4 0o))odities )eans rice6 4heat6 sugar6 gold etc5 These could (e traded 4ithout o4ning a piece of the co))odity you trade in5 0o))odities6 4hich you have (een eating or using all this years or donning it as a fashion accessory or even running you car 4ith6 can (e no4 traded on the Indian e;changes5 It has al4ays (een traded in the +lo(al e;changes6 no4 it is your turn to e;perience the po4er of co))odities5 0$(e:4 The glo(al foreign e;change )arket is the (iggest )arket in the 4orld5 The nearly ,S" # trillion daily turnover e;ceeds the co)(ined turnover of the entire 4orldAs stock and (ond )arkets5 There are )any reasons for the popularity of foreign e;change trading6 (ut a)ong the )ost i)portant are6 the high li*uidity #= hours a day and the very lo4 dealing costs associated 4ith trading5 The )arket is so large that a handful of players can never influence its outco)e E@3 &%M /*uity is a share in the o4nership of a co)pany5 It represents a

clai) on the co)panyAs assets and earnings5 The ter)s share6 e*uity and stock )ean the sa)e thing and can (e used 1olding a co)panyAs stock )eans that you are one of the )any o4ners 9shareholders: of a co)pany6 and6 as such6 you have a clai) 9to the e;tent of your holding:5To everything the co)pany o4ns5 As an o4ner6 you are entitled to your share of the co)panyAs earnings as 4ell as any voting rights attached to the stock5 Another e;tre)ely i)portant feature of e*uity is its li)ited lia(ility6 4hich )eans that6 as a part&o4ner of the co)pany6 you are not personally lia(le if the co)pany is not a(le to pay its de(ts5 In case of other entities such as partnerships6 if the partnership goes (ankrupt6 the partners are personally lia(le to4ards the creditors?lenders and they )ay have to sell off their personal assets like their house6 car6 furniture6 etc56 to )ake good the loss5 In case of holding e*uity shares6 the )a;i)u) value you can lose is the value of your invest)ent5 /ven if a co)pany of 4hich you are a shareholder goes (ankrupt6 you can never lose your personal assets5 De( -!& -e6M "erivative products have (een around for a long6 long ti)e5 In fact6 as early as the 'CD$s6 dealings rese)(ling present day derivative )arket transactions 4ere seen in rice )arkets in Osaka6 .apan5 The first leap to4ards an organi8ed derivatives )arket ca)e in '%=%6 4hen the 0hicago oard of Trade 90 OT:6 the largest derivative e;change in the 4orld6 4as esta(lished5 Today6 e*uity and co))odity derivative )arkets are rapidly gaining in si8e in India5 In ter)s of popularity too6 these )arkets are catching on like a forest fire5 G$l' C$ "64 An instru)ent of long ter) invest)ent6 +old acts as a hedge against inflation (esides providing high li*uidity5 Most Indians share an

e)otional (ond 4ith +old nearly (ordering on spirituality5 <estive occasions E auspicious days like Akshaya Trithiya6 "ussehra6 "hanteras?"i4ali are days 4hen custo)ers throng +old selling outlets to have a piece of this precious )etal5 ut in a highly disorgani8ed +old )arket6 the purity aspect and there(y the value for oneAs Money during the purchase of +old has al4ays (een a *uestion )ark5 <or the custo)er6 the lack of access to a (randed6 afforda(le6 relia(le +old coin has al4ays (een a )atter of concern5 Reliance ai)s to (ridge this gap (y giving II5IIS pure6 #= carat6 and S4iss +old coins through its distri(ution net4ork5 Availa(le in $5Dg6 'g6 Dg) and %g) deno)inations6 these #= carat6 II5IIS pure6 internationally certified +old coins cater to a large seg)ent of the society in (oth the retail and the corporate 4orld5 Availa(le in ta)per proof packaging6 the overall look and feel of these coins is far superior E they possess a great finish5 These +old coins are Ideal for custo)ers or corporate to (e used as a gifting idea6 for retail?agent contests6 as e)ployee re4ards etc5 Retail custo)ers (uy these coins 7ust for the pleasure of o4ning it or as an invest)ent idea5 Ge"e(!l I"63(!"#e4 It is a syste) (y 4hich the losses suffered (y a fe4 are spread over )any6 e;posed to si)ilar risks5 Insurance is a protection against financial loss arising on the happening of an une;pected event5 It is a hedge against the occurrence of unforeseen incidents5 Insurance products help you in not only )itigating risks (ut also helps you (y providing a financial cushion against adverse financial (urdens suffered5 Accidents555 illness555 fire555 financial securities are the things youJd like to 4orry a(out any ti)e5 +eneral Insurance provides you the )uch&needed protection against such unforeseen events5 ,nlike 2ife Insurance6 +eneral Insurance is not )eant to offer returns (ut is a protection against

contingencies5 ,nder certain Acts of Parlia)ent6 so)e types of insurance like Motor Insurance and Pu(lic 2ia(ility Insurance have (een )ade co)pulsory5 I,O4 When an unlisted co)pany )akes either a fresh issue of securities or an offer for sale of its e;isting securities or (oth for the first ti)e to the pu(lic5 This paves 4ay for listing and trading of the issuerAs securities5 L 1e "63(!"#e4 2ife insurance helps Provide financial assurance E security for your dependents E loved ones5 It is an i)portant part of the financial planning (ou*uet for all individuals E fa)ilies5 2ife insurance products offer co)prehensive financial solutions 4hich (esides offering financial security also provide opportunity for saving6 invest)ent E ta; planning5 M3&3!l 03"'64 A )utual fund is an entity6 4hich offers a nu)(er of invest)ent sche)es 4ith different invest)ent o(7ectives5 An investor interested in investing in these sche)es needs to assess 4hich sche)e has an invest)ent o(7ective that )atches his6 to )ake his selection fro) a)ong the availa(le sche)es5 Mutual funds are 4ell&structured and closely&regulated entities6 4hich hire invest)ent professionals to invest and )anage investorsA funds5 Mutual funds are 4ell&structured and closely&regulated entities6 4hich hire invest)ent professionals to invest and )anage investorsA funds5Mutual funds issue units to each investor (ased on the a)ount invested5 ,nits of )utual funds are si)ilar to shares issued (y co)panies5 <or instance6 if an investor invests Rs D6$$$ in a ne4 sche)e of a )utual fund6 4hich is

offering units at Rs '$ per unit6 he 4ill receive D$$ units in the sche)e 9Rs D6$$$ ? Rs '$:5 The )utual fund invests the )oney collected fro) unit&holders on their (ehalf5 Inco)e earned on these invest)ents is distri(uted (y the )utual fund a)ong its investors in proportion to their holding in the sche)e5 <or instance6 taking the a(ove e;a)ple for4ard6 if the sche)e issues a total of ' lakh units and earns a total inco)e of Rs ' lakh in a particular period6 it 4ould have earned Re ' per unit issued 9Rs ' lakh ? ' lakh units:5 The investor6 4ho had applied for D$$ units6 4ill (e entitled to receive Rs D$$ 9inco)e earned per unit H Re ' ; D$$ units:5 ,e(6$"!l 0 "!"#e M There are good ti)es and (ad ti)es during every stage of our lives6 and (eing financially prepared to face all kinds of situations )akes the 7ourney of life a lot easier and certainly )ore co)forta(le5 ,$(&1$l $ M!"!.e+e"& Se(- #e64 As you drive to4ards your o(7ective of creating 4ealth6 you need to e)ploy the right invest)ent vehicles6 at the right ti)e5 +iven the unpredicta(le nature of e*uity )arkets6 staying on course re*uires e;pert )aneuvering6 ti)e and effort5 ThatJs 4here Portfolio Manage)ent co)es in5 It gives your portfolio the edge (y skillfully sifting through availa(le invest)ent opportunities to help you reduce risk and )a;i)i8e your returnsK even as you are left 4ith a)ple ti)e to focus on )ore pressing )atters5 Portfolio )anage)ent is all a(out strengths6 4eaknesses6 opportunities and threa ts in the choice of de(t vs5 e*uity6 do)estic vs5 international6 gro4th vs5 safety6 and )any other tradeoffs encountered in the atte)pt to )a;i)i8e return at a given appetite for risk5

Investors
An investor is any party that )akes an invest)ent5 The ter) has taken on a specific )eaning in finance to descri(e the particular types of people and co)panies that regularly purchase e*uity or de(t securities for financial gain in e;change for funding an e;panding co)pany5 2ess fre*uently6 the ter) is applied to parties 4ho purchase real estate6 currency6 co))odity derivatives6 personal property6 or other assets5 Invest)ent or investing is a ter) 4ith several closely&related )eanings in (usiness )anage)ent6 finance and econo)ics6 related to saving or deferring consu)ption5 An asset is usually purchased6 or e*uivalently a deposit is )ade in a (ank6 in hopes of getting a future return or interest fro) it5 The 4ord originates in the 2atin LvestisL6 )eaning gar)ent6 and refers to the act of putting things 9)oney or other clai)s to resources: into othersJ pockets5

(ypes of investors
Individual investors 9including trusts on (ehalf of individuals6 and u)(rella co)panies for)ed for t4o or )ore to pool invest)ent funds: 0ollectors of art6 anti*ues6 and other things of value Angel investors6 either individually or in groups !enture capital funds6 4hich serve as invest)ent collectives on (ehalf of individuals6 co)panies6 pension plans6 insurance reserves6 or other funds5 Invest)ent (anks usinesses that )ake invest)ents6 either directly or via a captive fund Invest)ent trusts6 including real estate invest)ent trusts Mutual funds6 hedge funds6 and other funds6 o4nership of 4hich )ay or )ay not (e pu(licly traded 9these funds typically pool )oney raised fro) their o4ner&su(scri(ers to invest in securities:

I"-e6&+e"&6
Investing is a )ethod of purchasing assets in order to gain profit in the for) of reasona(ly predicta(le inco)e 9dividends6 interest6 or rentals: and appreciation over the long ter)5 A person should invest so that the )oney gro4s and shields against rising inflation5 The rate of return on invest)ents should (e greater than the rate of inflation6 leaving you 4ith a nice surplus over a period of ti)e5 Whether your )oney is invested in stocks6 (onds6 )utual funds or certificates of deposit 90":6 the end result is to create 4ealth for retire)ent6 )arriage6 college fees6 vacations6 (etter standard of living or to 7ust pass on the )oney to the ne;t generation or )ay(e have so)e fun in your life and do things you had al4ays drea)ed of doing 4ith a little e;tra cash in your pocket5 Also6 itJs e;citing to revie4 your invest)ent returns and to see ho4 they are accu)ulating at a faster rate than your salary5 y investing into the )arket right a4ay you allo4 your invest)ents )ore ti)e to gro46 4here(y the concept of co)pounding interest s4ells your inco)e (y accu)ulating your earnings and dividends5 0onsidering the unpredicta(ility of the )arkets6 research and history indicates these three golden rules for all investors

'5 Invest early

#5 Invest regularly >5 Invest for long ter) and not short ter)

There is no statutory a)ount that an investor needs to invest in order to generate ade*uate returns fro) his savings5 The a)ount that you invest 4ill eventually depend on factors such asM ' 3our risk profile #5 3our Ti)e hori8on >5 Savings )ade

0$ll$8 ". A(e &)e I"-e6&+e"& W)e(e I"-e6&$( C!" I"-e6&

Invest)ent Opportunities for an Investor

+overn)ent securities5

#5 -on +overn)ent securities5

1< G$-e("+e"& 6e#3( & e6

+overn)ent securities
borrowing !rogramme" (G-secs) are sovereign securities which are issued by the Reserve Bank of India on behalf of Government of India, in lieu of the Central Government s market

The ter) +overn)ent Securities includesM

0entral +overn)ent Securities5 State +overn)ent Securities5 Treasury ills5

T%7e6 $1 G$-e("+e"& Se#3( & e6

Types of +overn)ent Securities

"ated Securities

Oero 0oupon (onds

Partly Paid Stock

<loating Rate onds

"ated

#ecurities$ %re generally fi&ed maturity and fi&ed cou'on securities usually carrying semi-annual cou'on" (hese are called dated securities because these are identified by their date of maturity and the cou'on, e"g", ))"*+, G-I .*). is a Central Government security maturing in .*)., which carries a cou'on of ))"*+, 'ayable half yearly" (he key features of these securities are$

They are issued at face value5 0oupon or interest rate is fi;ed at the ti)e of issuance6 and re)ains

constant till rede)ption of the security5

The tenor of the security is also fi;ed5 Interest ?0oupon pay)ent is )ade on a half yearly (asis on its face value5 The security is redee)ed at par 9face value: on its )aturity date5

Oero 0oupon (onds$ %re bonds issued at discount to face value and redeemed at 'ar"
(hese were issued first on /anuary )0, )001 and were followed by two subse2uent issues in )001-03 and )003-04 res'ectively" (he key features of these securities are$

They are issued at a discount to the face value5 The tenor of the security is fi;ed5 The securities do not carry any coupon or interest rate5 The difference

(et4een the issue price 9discounted price: and face value is the return on this security5
The security is redee)ed at par 9face value: on its )aturity date5

Partly Paid Stock$

Is stock where 'ayment of 'rinci'al amount is made in installments over a given time frame" It meets the needs of investors with regular flow of funds and the need of Government when it does not need funds immediately" (he first issue of such stock of eight year maturity was made on 5ovember )3, )001 for Rs" .*** crore" #uch stocks have been issued a few more times thereafter" (he key features of these securities are$

 They are issued at face value6 (ut this a)ount is paid in install)ents

over a specified period5 0oupon or interest rate is fi;ed at the ti)e of issuance6 and re)ains constant till rede)ption of the security5 The tenor of the security is also fi;ed5 Interest ?0oupon pay)ent is )ade on a half yearly (asis on its face value5 The security is redee)ed at par 9face value: on its )aturity date5

<loating Rate

: are bonds with variable interest rate with a fi&ed 'ercentage over a benchmark rate" (here may be a ca' and a floor rate attached thereby fi&ing a ma&imum and minimum interest rate 'ayable on it" 6loating rate bonds of four year maturity were first issued on #e'tember .0, )003, followed by another issue on 7ecember 3, )003" Recently RBI issued a floating rate bond, the cou'on of which is benchmarked against average yield on +41 7ays (reasury Bills for last si& months" (he cou'on is reset every si& months The key features of these securities areM

onds

They are issued at face value5 0oupon or interest rate is fi;ed as a percentage over a predefined

(ench)ark rate at the ti)e of issuance5 The (ench)ark rate )ay (e Treasury (ill rate6 (ank rate etc5 Though the (ench)ark does not change6 the rate of interest )ay vary according to the change in the (ench)ark rate till rede)ption of the security5
The tenor of the security is also fi;ed5

Interest ?0oupon pay)ent is )ade on a half yearly (asis on its face value5

 The security is redee)ed at par 9face value: on its )aturity date5

2e"e1 &6 $1 I"-e6& ". " G$-e("+e"& Se#3( & e6

Additional Inco)e Ta; (enefit u?s %$2 of the Inco)e Ta; Act for

Individuals @ualifies for S2R purpose Oero default risk (eing sovereign paper 1ighly li*uid5 Transparency in transactions and si)plified settle)ent procedures through 0S+2?-S"25

A< N$" G$-e("+e"& 6e#3( & e6

Types of -on +overn)ent Securities

A: Share Market

: Mutual <und

A< S)!(e M!(*e& B S&$#* M!(*e&

Indian Stock Markets are one of the oldest in Asia5 Its history dates (ack to nearly #$$ years ago5 The earliest records of security dealings in India are )eagre and o(scure5 The /ast India 0o)pany 4as the do)inant institution in those days and (usiness in its loan securities used to (e transacted to4ards

the close of the eighteenth century5 y '%>$Js (usiness on corporate stocks and shares in ank and 0otton presses took place in o)(ay5 Though the trading list 4as (roader in '%>I6 there 4ere only half a do8en (rokers recogni8ed (y (anks and )erchants during '%=$ and '%D$5 The '%D$Js 4itnessed a rapid develop)ent of co))ercial enterprise and (rokerage (usiness attracted )any )en into the field and (y '%C$ the nu)(er of (rokers increased into C$5 In '%C$&C' the A)erican 0ivil War (roke out and cotton supply fro) ,nited States of /urope 4as stoppedK thus6 the JShare ManiaJ in India (egun5 The nu)(er of (rokers increased to a(out #$$ to #D$5 1o4ever6 at the end of the A)erican 0ivil War6 in '%CD6 a disastrous slu)p (egan 9for e;a)ple6 ank of o)(ay Share 4hich had touched Rs #%D$ could only (e sold at Rs5 %P:5 At the end of the A)erican 0ivil War6 the (rokers 4ho thrived out of 0ivil War in '%P=6 found a place in a street 9no4 appropriately called as "alal Street: 4here they 4ould conveniently asse)(le and transact (usiness5 In '%%P6 they for)ally esta(lished in o)(ay6 the L-ative Share and Stock rokersJ AssociationL 94hich is alternatively kno4n as The Stock /;change L:5

,( +!(% C Se#$"'!(% M!(*e&

There are t4o 4ays for investors to get shares fro) the pri)ary and secondary )arkets5 In pri)ary )arkets6 securities are (ought (y 4ay of pu(lic issue directly fro) the co)pany5 In Secondary )arket share are traded (et4een t4o investors5

,RIMARY MARKET Market for ne4 issues of securities6 as distinguished fro) the Secondary Market= 4here previously issued securities are (ought and sold5 A )arket is pri)ary if the proceeds of sales go to the issuer of the securities sold5 This is part of the financial )arket 4here enterprises issue their ne4 shares and (onds5 It is characteri8ed (y (eing the only )o)ent 4hen the enterprise receives )oney in e;change for selling its financial assets5 SECONDARY MARKET The )arket 4here securities are traded after they are initially offered in the pri)ary )arket5 Most trading is done in the secondary )arket5 To e;plain further6 it is trading in previously issued financial instru)ents5 An organi8ed )arket for used securities5 /;a)ples are the -e4 3ork Stock /;change 9-3S/:6 o)(ay Stock /;change 9 S/:6 -ational Stock /;change -S/6 (ond )arkets6 over&the&counter )arkets6 residential )ortgage loans6 govern)ental guaranteed loans etc5 While there has (een increased activity in pri)ary de(t issues6 the secondary )arket for de(t is yet to (eco)e active5 The entry of <IIs into the de(t Market and the launching of fi;ed inco)e sche)es and )oney )arket sche)es (y )utual funds are e;pected to activate the de(t )arket5 Several technical i)pedi)ents that prevented )ore active secondary )arket trading in +overn)ent securities have (een re)oved over the past fe4 years5 )arket for fi;ed inco)e assets5 ut still there are significant (arriers to the active develop)ent of the secondary

/$8 &$ T(!'e S&$#* M!(*e& S%6&e+

The stock )arket syste) is an avenue of ho4 to trade stock for listed corporations5 As a corporation is for)ed6 its initial shareholders are a(le to ac*uire shares of stock fro) the point of su(scription 4hen a co)pany is created5 When a co)pany starts to (e traded to the pu(lic6 the pri)ary )arket co)es in 4here those 4ho su(scri(e to the initial pu(lic offering 9IPO: takes on the shares of stock sold fro) point of IPO5 When those 4ho (ought into a co)pany at IPO point of vie4 decides to sell their shares of stock to other people6 they can do so (y going to the stock )arket5 The stock )arket is a secondary )arket for securities trading 4herein original or secondary holders of a co)panyAs shares of stock can sell their stocks to other individuals 4ithin the fra)e 4ork of the stock )arket syste)5 The stock )arket has (uyers of stocks or those 4ho 4ants to o4n a part of the co)pany (ut 4asnAt a(le to do so during the initial pu(lic offerings )ade (y the co)pany to the pu(lic 4hen it has decided to list itself as a pu(licly listed co)pany5 The secondary )arket or the stock )arket allo4s other individuals to sell shares of the co)pany 4hen the initial shareholders )ay have reali8ed that they 4ant to sell their shares after gaining either significant profit or reali8ed significant loss fro) point of ac*uiring a co)pany fro) its IPO price5 As the stock )arket has developed and progressed over the years6 the 4ays of ho4 to trade stock fro) one individual to another has (eco)e )ore co)plicated and )ore challenging to (e regulated5 Technology has aided in

Providing )ore efficient 4ays of transactions5 <ront and (ackend solutions are put into place that helps direct the e;change of shares of stock in ti)ely and secure )anner5 Pu(lic education over ho4 the stock )arket 4orks is one of the pri)ary concerns of the investing pu(lic in order to pro)ote the trading activities of the stock )arket to other individuals 4ho )ay also (enefit fro) doing transactions over this secondary type of e*uities )arket5 With the a(undance of relevant co)pany infor)ation on perfor)ance of pu(licly listed co)panies6 this infor)ation 4ill help the investors to (eco)e )ore a4are of the directions of the co)panies 4here they have share of stocks on and this 4ill also aid the) in ho4 to trade stock and 4here to direct their invest)ent strategies5

S&$#* E:#)!".e6 " I"' !

Stock /;changes in India

A: o)(ay Stock /;change 9 S/:

: -ational Stock /;change 9-S/:

0: Regional Stock /;changes

A:

2$+5!% S&$#* E:#)!".e

Of the ## stock e;changes in the country6 Mu)(aiJs 9earlier kno4n as o)(ay:6 o)(ay Stock /;change is the largest6 4ith over C6$$$ stocks listed5 The S/ accounts for over t4o thirds of the total trading volu)e in the country5 /sta(lished in '%PD6 the e;change is also the oldest in Asia5

A)ong the t4enty&t4o Stock /;changes recogni8ed (y the +overn)ent of India under the Securities 0ontracts 9Regulation: Act6 'IDC6 it 4as the first one to (e recogni8ed and it is the only one that had the privilege of getting per)anent recognition a(&initio5

Appro;i)ately P$6$$$ deals are e;ecuted on a daily (asis6 giving it one of the highest per hour rates of trading in the 4orld5 There are around >6D$$ co)panies in the country 4hich are listed and have a serious trading volu)e5 The )arket capitali8ation of the TSense;J is a 4idely used )arket S/ is Rs5D trillion5 The inde; for the S/5 S/

The )ain ai)s and o(7ectives of the S/ is to provide a )arket place for the purchase and sale of security evidencing the o4nership of (usiness property or of a pu(lic or (usiness de(t5 It ai)s to pro)ote6 develop and )aintain a 4ell regulated )arket for dealing in securities and to safeguard the interest of )e)(ers and the investing pu(lic having dealings on the /;change5 It helps industrial develop)ent of the country through efficient resource )o(ili8ation5 To esta(lish and pro)ote honora(le and 7ust practices in securities transactions

2SE Se"6e:
The S/ Sense; is a value&4eighted inde; co)posed of >$ co)panies 4ith the (ase April 'IPI U '$$5 It has gro4n (y )ore than four ti)es fro) .anuary 'II$ till date5 The set of co)panies in the inde; is essentially fi;ed5 These co)panies account for around one&fifth of the )arket capitali8ation of the S/5 We can use infor)ation fro) April 'IPI on4ards in esti)ating the

long&run rate of return on the S/ Sense; and that co)es to $5D#S per 4eek 9continuously co)pounded: 4ith a standard deviation of >5CPS5 This translates to #PS per annu)6 4hich translates to roughly '%S per annu) after co)pensating for inflation5

Ne8 De-el$7+e"&6

In -ove)(er6 'IIC6 as a )ove to reduce the counter party risk6 the /;change set up a trade guarantee sche)e i5e5 all trades carried out on the O2T are guaranteed (y the 0learing 1ouse of the /;change5 A depository has (een set up as a 7oint venture (y the 1o4ever6 it 4ill (e a su(sidiary of the ank of India and the /;change5 ank of India5 The /;change

introduced trading in fi;ed inco)e securities under a separate group to give i)petus to trading in de(entures and other corporate de(t instru)ents6 to increase trading in govern)ent dated securities5

2< N!& $"!l S&$#* E:#)!".e

The -ational Stock /;change 9-S/:6 located in o)(ay6 is IndiaJs first de(t )arket5 It 4as set up in 'II> to encourage stock e;change refor) through syste) )oderni8ation and co)petition5 It opened for trading in )id&'II=5 It 4as recently accorded recognition as a stock e;change (y the "epart)ent of 0o)pany Affairs5 The instru)ents traded are6 treasury (ills6 govern)ent security and (onds issued (y pu(lic sector co)panies5 The nu)(er of

)e)(ers trading on the e;change has (een on a steady increase6 helping integrate the national )arket and providing a )odern syste) 4ith a co)plete audit trail of all transactions5

Me+5e(6) 7
'$#C trading )e)(ers on the 0apital Market seg)ent6 of 4hich around %CS account for corporates and the re)aining individuals and fir)s5 ''> trading )e)(ers on the Wholesale "e(t Market seg)ent6 all of 4hich account for corporates5 9Out of these ''> trading )e)(ers6 '$C are )e)(ers of the 0apital Market seg)ent also and are included in the '$#C )e)(ers indicated a(ove:5

Ge$.(!7) # D 6&( 53& $"

Over #C$$ trading ter)inals Over 'D$$ !SATAs across the country 4ith a #= hour -et4ork )onitoring syste) in over 'C$ cities as of "ece)(er >'st6 'IIP5

N3+5e( $1 C$+7!" e6
On the 0apital Market seg)ent6 C$$ securities are listed and PC# securities are per)itted to trade as of "ece)(er >'st6 'IIP5

 On the Wholesale "e(t Market seg)ent6 =P$ securities are listed and >CI securities are per)itted to trade as of "ece)(er >'st6 'IIP5 Of the =P$ securities listed6 #CP are +overn)ent Securities6 T& ills and the (alance account for other securities5

C!7 &!l M!(*e& O7e(!& $"6

-S/ is 4orking to increase the capacity of the trading syste) fro) the present =6 $$6$$$ trades per day to )ore than '$6 $$6$$$ trades per day5 The average daily nu)(ers of trades have gone up fro) over %I> trades in -ove)(er&I= to over '6 =%6P%> trades in -ove)(er $%5 On August P6 AIP the nu)(er of trades reached a record high of #6 >C6='' 4hich )akes -S/ one of the largest stock e;changes in the 4orld5

Average daily traded value has increased fro) Rs5P crores in -ove)(er& I= to )ore than Rs5 '=%$ crores in "ece)(er&$% 4ith a high of Rs5>6$%$5C' crores recorded on #Cth .une&$%5 -u)(er of shares traded has increased fro) PC5'$ lakhs in -ove)(er&I= to ''6'=%5#' lakhs in "ece)(er&$%5 -et traded value has increased fro) Rs5'#D crores in -ove)(er &I= to Rs5 >#6D=I crores in "ece)(er&$%5 "elivered value 9settle)ent 4ise: has increased fro) Rs5C$ crores in -ove)(er &I= to Rs5D6 $$% crores in "ece)(er &$%5

-u)(er of shares traded 9depository seg)ent: has increased fro) #$$ shares in "ece)(er &IC to '6 'I6'$# shares in "ece)(er&$%5 -et traded value 9depository seg)ent: has increased fro) Rs5$5=> lakhs in "ece)(er &IC to Rs5'%D5== lakhs in "ece)(er&$%5 Market share of cities other than five )etros 9Mu)(ai6 "elhi6 0alcutta6 0hennai E Ah)eda(ad: 4hich 4as a(out 'CS in first *uarter of 'IIC gre4 to as high as #=S during the last *uarter of 'IIP5 The ratio of contri(ution to turnover fro) -on Stock /;change centers to Stock /;change centers has risen fro) $5>CS in first *uarter 9.an to Mar: of 'IIC to over '$S in fourth *uarter of 'IIP5 The )arket capitali8ation of co)panies has increased fro) Rs5 #I#C>P crores in -ove)(erJI= to Rs5 =DP'CC> crores in <e(ruaryJ$%5

Cle!( ". C Se&&le+e"&

0o)pleted 'P$ settle)ents successfully 4ithout any delay or postpone)ent as on <e(ruary #%6 'II%5 !alue of shares handled (y the 0learing house per 4eek has increased fro) Rs5 >$ crores in -ove)(er&I= to over Rs5'$=# crores per 4eek in "ece)(er&IP5 The highest value of shares handled during the period 4as )ore than Rs5 ##D'5=$ crores5 Inter&Region 0learingM -S002 has Regional 0learing 0enters at "elhi6 0alcutta6 0hennai and a 0entral 0learing 0entre at Mu)(ai5

Me)(ers have the option of delivering?receiving the securities at a clearing centre chosen (y the)5

T(!' ". ,!&&e(" $1 &)e I"' !" S&$#* M!(*e&

Trading in Indian stock e;changes is li)ited to listed securities of pu(lic li)ited co)panies5 They are (roadly divided into t4o categories6 na)ely6 specified securities 9for4ard list: and non&specified securities 9cash list:5 /*uity shares of dividend paying6 gro4th&oriented co)panies 4ith a paid&up capital of at least Rs5D$ )illion and a )arket capitali8ation of at least Rs5'$$ )illion and having )ore than #$6$$$ shareholders are6 nor)ally6 put in the specified group and the (alance in non&specified group5

T4o types of transactions can (e carried out on the Indian stock e;changesM 9a: spot delivery transactions Lfor delivery and pay)ent 4ithin the ti)e or on the date stipulated 4hen entering into the contract 4hich shall not (e )ore than '= days follo4ing the date of the contractL and 9(: for4ard transactions Ldelivery and pay)ent can (e e;tended (y further period of '= days each so that the overall period does not e;ceed I$ days fro) the date of the contractL5 The latter is per)itted only in the case of specified shares5 The (rokers 4ho carry over the outstanding pay carry over charges 4hich are usually deter)ined (y the rates of interest prevailing5 A )e)(er (roker in an Indian stock e;change can act as an agent6 (uy and sell securities for his clients on a co))ission (asis and also can act as a trader or dealer as a principal6 (uy and sell securities on his o4n account and risk6 in contrast 4ith the practice prevailing on -e4 3ork and 2ondon Stock /;changes6 4here a )e)(er can act as a 7o((er or a (roker only5

The nature of trading on Indian Stock /;changes are that of age old conventional style of face&to&face trading 4ith (ids and offers (eing )ade (y open outcry5 1o4ever6 there is a great a)ount of effort to )oderni8e the Indian stock e;changes in the very recent ti)es5

C) Regional Stock Exc ange!

There are ## stock e;changes in India5 A)ong the) t4o are national level stock e;changes na)ely o)(ay Stock /;change 9 S/: and -ational Stock /;change of India 9-S/:5 The rest #$ are Regional Stock /;changes5

L 6& $1 Re. $"!l S&$#* E:#)!".e6 " I"' !

Ah)eda(ad Stock /;change5 angalore Stock /;change5 hu(anesh4ar Stock /;change5 0alcutta Stock /;change5 0ochin Stock /;change5 0oi)(atore Stock /;change5 "elhi Stock /;change5 +u4ahati Stock /;change5 1ydera(ad Stock /;change5 .aipur Stock /;change5 2udhiana Stock /;change5 Madhya Pradesh Stock /;change5 Madras Stock /;change5 Mangalore Stock /;change5 Meerut Stock /;change5 Pune Stock /;change5 Magadh Stock /;change5 Saurashtra Futch Stock /;change5 !adodara Stock /;change5 ,ttar Pradesh Stock /;change5

T)e 'e-el$7+e"& " I"' !" 6e#3( & e6 +!(*e& 6 "#e199A.

SE"I # Intro$%ction
In 'I%% the Securities and /;change oard of India 9S/ I: 4as esta(lished (y the +overn)ent of India through an e;ecutive resolution6 and 4as su(se*uently upgraded as a fully autono)ous (ody 9a statutory oard: in the year 'II# 4ith the passing of the Securities and /;change oard of India Act 9S/ I Act: on >$th .anuary 'II#5 In place of +overn)ent 0ontrol6 statutory and autono)ous regulatory (oards 4ith defined responsi(ilities6 to cover (oth develop)ent E regulation of the )arket6 and independent po4ers have (een set up5 Parado;ically this is a positive outco)e of the Securities Sca) of 'II$&I'5 The (asic o(7ectives of the oard 4ere identified asM
To protect the interests of investors in securitiesK To pro)ote the develop)ent of Securities MarketK To regulate the securities )arket and

 <or )atters connected there4ith or incidental hereto5

Since its inception S/ I has (een 4orking targeting the securities and is attending to the fulfill)ent of its o(7ectives 4ith co))enda(le 8eal and de;terity5 The i)prove)ents in the securities )arkets like capitali8ation re*uire)ents6 )argining6 esta(lish)ent of clearing corporations etc5 reduced the risk of credit and also reduced the )arket5 S/ I has introduced the co)prehensive regulatory )easures6 prescri(ed registration nor)s6 the eligi(ility criteria6 the code of o(ligations and the code of conduct for different inter)ediaries like6 (ankers to issue6 )erchant (ankers6 (rokers and su(&(rokers6 registrars6 portfolio )anagers6 credit rating agencies6 under4riters and others5 It has fra)ed (ye&la4s6 risk identification and risk )anage)ent syste)s for 0learing houses of stock e;changes6 surveillance syste) etc5 4hich has )ade dealing in securities (oth safe and transparent to the end investor5 Another significant event is the approval of trading in stock indices 9like SEP 0-V -ifty E Sense;: in #$$$5 A )arket Inde; is a convenient and effective product (ecause of the follo4ing reasonsM

03"#& $"6 ,e(1$(+e' 2% SE2I.

W 0apital Issues 90ontrol: Act of 'I=P repealed and the office of
0ontroller of 0apital Issues a(olishedK control over price and pre)iu) of shares re)oved5 0o)panies no4 free to raise funds fro) securities )arkets after filing prospectus 4ith the Securities and /;change oard of India 9S/ I:5 W The po4er to regulate stock e;changes delegated to S/ I (y the +overn)ent5

W S/ I introduces regulations for pri)ary and other secondary )arket inter)ediaries6 (ringing the) 4ithin the regulatory fra)e4ork5 W Refor)s (y S/ I in the pri)ary )arket include i)proved disclosure standards6 introduction of prudential nor)s6 and si)plification of issue procedures5 0o)panies re*uired to disclose all )aterial facts and specific risk factors associated 4ith their pro7ects 4hile )aking pu(lic issues5 W 2isting agree)ents of stock e;changes a)ended to re*uire listed co)panies to furnish annual state)ent to the e;changes sho4ing variations (et4een financial pro7ections and pro7ected utili8ation of funds in the offer docu)ent and actual figures5 This is to ena(le shareholders to )ake co)parisons (et4een perfor)ance and pro)ises5 W S/ I introduces a code of advertise)ent for pu(lic issues to ensure fair and truthful disclosures5 W "isclosure nor)s further strengthened (y introducing cash flo4 state)ents5 W -e4 issue procedures introducedX(ook (uilding for institutional investorsXai)ed at reducing costs of issue5 W S/ I introduces regulations governing su(stantial ac*uisition of shares and takeovers and lays do4n conditions under 4hich disclosures and )andatory pu(lic offers are to (e )ade to the shareholders5 Regulations further revised and strengthened in 'IIC5 W S/ I reconstitutes the governing (oards of the stock e;changes and introduces capital ade*uacy nor)s for (roker accounts5 W Over&the&0ounter /;change of India for)ed5 W -ational Stock /;change 9-S/: esta(lish)ent as a stock e;change 4ith nation4ide electronic trading5 W o)(ay Stock /;change 9 S/: introduces screen&(ased tradingK 'D stock e;changes no4 have screened&(ased trading5 S/ granted per)ission to e;pand its trading net4ork to other centers5 W 0apital ade*uacy re*uire)ent for (rokers enforced5

W Syste) of )ark&to&)arket )argins introduced in the stock e;changes5 W Stock lending sche)e introduced5 W Transparency (rought out in short selling5 W -ational Securities 0learing 0orporation6 2td5 set up (y -S/5 W S/ in the process of i)ple)enting a trade guarantee sche)e5 W S/ I strengthens surveillance )echanis)s and directs all stock e;changes to have separate surveillance depart)ents5 W S/ I strengthens enforce)ent of its regulations5 egins the process of prosecuting co)panies for )isstate)ents and ensures refunds of application )oney in several issues on account of )isstate)ents in the prospectus5 W Indian co)panies per)itted to access international capital )arkets through /uro issues5 W <oreign direct invest)ent allo4ed in stock (roking6 asset )anage)ent co)panies6 )erchant (anking6 and other non (ank finance co)panies5

2< M3&3!l 03"'

A Mutual fund is a pool of )oney put together (y a group of investors to (e invested in such a 4ay as to achieve the groupAs stated o(7ectives5 Mutual <unds are uni*ue sche)es that allo4 investors to pool in their )oney into one co))on invest)ent platfor)5 This platfor) is created (y an Asset Manage)ent 0o)pany 91"<0 Securities6 <idelity etc: in the for) of various sche)es covering all the asset classes 9de(t6 e*uity etc:

The fund )anager creates a portfolio of securities and re invests the collective 4ealth of the investors into this specific portfolio5 Investors have the option to choose any particular kind of portfolio they 4ould like to invest in fro) 4ithin the universe of sche)es availa(le5 The value of this invest)ent gets reflected as the -et Asset !alue or N-A!A 4hich is pu(lished daily5

T%7e6 $1 M3&3!l 03"'6 '5 "e(t <unds H 2i*uid <unds6 +ilt <unds6 Short ter) <unds6 Inco)e <unds6 MIPs #5 /*uity <unds H 2arge 0ap <unds6 Mid 0ap <unds6 The)e Ta; Saving <unds >5 alanced <unds =5 Speciality <unds H 0hildrenAs +ift <und6 <und of <unds etc ased <unds6 Sectoral <unds6 /*uity 2inked Savings Sche)es 9/2SS: or

W E@3 &% M3&3!l 03"'6 invest in e*uity shares fro) the pri)ary and secondary stock )arkets5 This category can (e further su( divided on the (asis of the type of co)panies they include in their portfolio5 H L!(.e C!7 03"'6 H Invest )ainly in shares of (lue chip co)panies 4ith a proven track record of gro4th H M ' C!7 03"'6 H Invest )ainly in shares of s)aller co)panies 4ith good gro4th prospects in the ne;t >&D years

H T)e+e 5!6e' 03"'6 H Invest according to a specific the)e identified (y the fund )anager5 <or e;a)ple6 infrastructure6 e)erging )arkets etc H Se#&$(!l 03"'6 H Invest in shares of co)panies 4ithin one particular sector5 <or e;a)ple (anking6 phar)a6 auto etc H ELSS H These are diversified e*uity sche)es 4ith a (ias to4ards large cap shares5 The specific intent is to ena(le investors to get a ta; e;e)ption u?s %$ 0 on the a)ount invested W De5& M3&3!l 03"'6 invest in de(t securities issued (y various corporates and the 0entral and various State govern)ents5 H S)$(& &e(+ !"' l @3 ' 13"'6 H Invest )ainly in de(t securities 4ith a )aturity of less than >$$ days H G l& 03"'6 H Invest only in de(t paper issued (y the govern)ent5 H I"#$+e 03"'6 H Invest in de(t securities 4ith )aturity greater than one year H MI,6 H MIPs or Monthly Inco)e Plans invest up to #$S of their portfolio in e*uity shares and the re)aining in de(t securities5 W 2!l!"#e' 03"'6 invest (oth in e*uity shares and de(t securities 4ith a vie4 to getting capital appreciation 4ith less risk5 The proportion in de(t or e*uity )ay vary depending on )arket conditions5 In the

current )arket situation typically (alanced funds have C$&P$S invested in e*uity and the rest in de(t5

W S7e# !l &% 03"'6 invest in de(t and e*uity securities6 (ut are set up 4ith a specific goal in )ind5 H C) l'(e"D6 G 1& 03"' H Invest in de(t and e*uity at the discreation of the fund )anager 4ith a '$&'D year invest)ent hori8on5 H 03"' $1 03"'6 H Invest in other )utual fund sche)es of the sa)e AM05

O&)e( (el!&e' 663e6E O7e" E"'e' S#)e+e6 H ,nits in these sche)es can (e (ought and sold at any ti)e5 Cl$6e' E"'e' S#)e+e6 H ,nits in these sche)es can (e (ought and sold only on specific days or the invest)ent )ay (e re*uired to (e locked in for a specific ti)e period5 <or e;a)ple /2SS are all closed ended 4ith a lock&in of > years E"&(% L$!' H This is applica(le on )ost e*uity (ased sche)es5 The entry load is an additional charge paid at the ti)e of )aking an invest)entK this )ainly caters to the distri(utorAs co))ission

E: & L$!' H This )ay (e applica(le to funds 9at the discretion of the AM0: if the invest)ent is 4ithdra4n (efore a specified nu)(er of )onths ?days have elapsed M3&3!l 13"'6 !(e (e#$++e"'e' *ee7 ". " + "' &)e 1$ll$8 ".4 & Invest)ent philosophy and outlook of the fund )anager & Return o(7ective of the particular funds & Perfor)ance over a specific period of ti)e

1istory of Mutual <unds in India

W 19F3?19874 G($8&) $1 &)e UTI W ,TI 4as the only )utual fund at the ti)e5 W ,TI 4as for)ed (y and governed (y an act of parlia)ent ,TI Act6 'IC> W ,S&C= 4as a controlled sche)e of ,TI W Master Share 'I%C 4as the 'st true )utual fund product W ,TI re)ained a )onopoly player during the period W ,TI is voluntarily under the S/ I Act

W 1987?19934E+.e(.e"#e $1 ,35l # Se#&$( 03"'6 W "uring this phase6 pu(lic sector (anks6 financial institutions and insurance co)panies 4ere allo4ed to set up )utual funds W S I 4as the first (ank&sponsored )utual fund and the 'st after ,TI to (e set up W S/ I got its regulatory po4ers in 'II#

W 1993?199F4 E+e(.e"#e $1 ,( -!&e 03"'6 W The private sector 4as allo4ed to set up )utual funds in 'II> W <oreign <und )anage)ent co)panies also allo4ed to operate

W 199F?A0044 G($8&) C SE2I Re.3l!& $"6 W In 'IIC6 the )utual fund regulations 4ere su(stantially revised E )odified and additional authority granted to S/ I W A co)prehensive set of regulations introduced 4ith S/ I 9Mutual <und: Regulations6'IIC W S/ I and AM<I launch their investor a4areness progra))es W AM<I Pu(lished its (ook titled Making Mutual <unds 4ork for you H the InvestorAs guide W In 'III6 dividends fro) )utual funds 4ere )ade ta;&e;e)pt in the hands of the investors W Mutual funds assets in )id&#$$# 4ere app;5 '6$$6$$$ crores

W A,M (y end of #$$= app;5 I-R 'D>6$$$ crores

O ./0TI!/
/;ecutive training is (eing conducted for giving real ti)e 4ork e;perience to students5 .o( pressure6 deadlines6 corporate environ)ent all students are e;posed to these conditions5 /;ecutive training 4ill help us to i)prove our co))unication skills5

At the sa)e ti)e this is opportunity to set his?her course for a ne4 future5 y 7oining Reliance Money ltd one can learn all a(out all the ele)ents of the corporate 4orld and finance sector5 "uring SIP one can learn also ho4 to target an o(7ective5 Whatever 4e 4ere planning to ac*uire or acco)plish6 the first step is targeting the o(7ective5 -o4 itAs ti)e to target our career o(7ective and apply 4hat 4e have learnt to our 7o( search5 SIP progra) is the special kind of progra) 4hich (egins creating a list of things6 4hich help for ne;t career to include5 To deter)ine the gro4th tend in the Indian share )arket5 To study the scope of share )arket 4ith regard to their invest)ents5 To study the trend in "e)at trading To analy8e the overall gro4th of share )arket To )easure investor preference to4ards the gro4ing trend of the share )arket in 2udhiana5

RESEARC/ MET/ODOLOGY

Method is a 4ay of doing so)ething and )ethodology is a set of )ethods used in a particular area of activity5 The purpose of this research is to find out Investor Preference With respect To Increasing Trend in Share Market5

S$3(#e $1 "1$(+!& $"4

Since this research is related to the Investor preference 4ith regard to the increasing trend in share )arket6 so the infor)ation is collected fro) the *uestionnaire and fro) the secondary data through internet5

D!&! &%7e 1$( &)e 7($9e#&

Pri)ary data collection is collection of data through @uestionnaire6 Personal intervie4 etc5 In this pro7ect data is collected through filling the *uestionnaire fro) people in 2udhiana5 Secondary data collection is through internet S!+7le 6 GeM The sa)ple si8e of the pro7ect is '$$ *uestionnaires5 Re7$(& (e6e!(#) 1 "' ".6M & This part co)es at the end6 in 4hich results are found like 4hatever infor)ation is collected till no4K 4e analy8e it at the end

'5 "o you invest in share )arketY Particulars 3es -o Total -o5 of investor %I '' '$$ Percentage %IS ''S '$$S

InterpretationM& '5 The total no of respondent are '$$5 #5 %IS respondents are investing in share )arket5 >5 ''S respondents are not investing in share )arket5

#5 If yes then in 4hich invest)entY Particulars /*uity Mutual fund Insurance Post office Total no5 of investor #' ># 'I D Percentage #'S >#S 'IS DS

anking Total

'# '$$

'#S '$$S

InterpretationM& '5 #'S respondents are investing in e*uity shares5 #5 >#S respondents are investing in )utual funds5 >5 'IS respondents are investing in insurance5 =5 DS respondents are investing in post office5 D5 '#S respondents are investing in (anking sector5

>5 "o you invest other than share )arketY Particulars 3es -o Total no5 of investors #' C% Percentage #>5DIS PC5$=S

Interpretation The total no of investor 4as %I fro) %I the #' investor investing in other than share )arket and C% investors are not investing other than share )arket5

=5 "o you invest through online trading or offline tradingY Particulars Online trading Offline trading Total -o5 of investor ># DP %I Percentage >D5IDS C=5$DS '$$S

InterpretationM& '5 >CS app; are doing online trading5 #5 C=S app; are doing offline trading5

D5 Through 4hich (roking house you are investingY Interpretation The total no5 of investor are %I and out of %I

># investor doing online trading they do not prefer offline trading or any (roking house5 P investor are investing through angel (roking5 >> investor are investing through reliance )oney ltd5 '$ are investing through sharekhan5 D are investing through religare securities ltd5 # are investing through fifty paise (roking house5

C5 1o4 long you have (een investing in stock )arketY Particulars 2ess than a year '&D years More than D years -o5 of investor #' >D >= Percentage #>5DIS >I5>#S >%5#$S

InterpretationM& #>5DIS respondents are investing in share )arket fro) less than D years6 >I5>#S respondents are investing in share )arket fro) D years and >%5#$S respondents are investing in share )arket fro) past D years5

P5 In 4hich instru)ent you are investingY Interpretation

The total no5 of investor are %I and out of %I DP are investing in e*uity shares P are investing in de(t )arket > are investing in )oney )arket ## are investing in )utual funds

%5 What is your trading preferenceY Particulars Intraday "elivery <uture option -o5 of investor >' >D #> Percentage >=5%>S >I5>#S #D5%=S

InterpretationM& '5 >=5%>S respondents prefer intraday trading5 #5 >I5>#S respondents prefer delivery trading5 >5 #D5%=S respondents prefer future trading5

I5 1ave you increased your invest)ent levelY Particulars 3es -o -o5 of investor DP ># Percentage C=5$=S >D5IDS

InterpretationM& '5 C=S respondents increase their investing level #5 >CS respondents are not increasing their investing level5

'$5"o you think ne4 height of sense; is good sign for gro4th of econo)yY Particulars 3es -o -o of investor %I $ Percentage '$$S $S

InterpretationM& '5 All the respondents agreed that the gro4th of sense; is good for econo)y5

''5"o you (elieve in high risk and high profitY Particulars 3es -o -o of investor PC '> Percentage %D5>IS '=5C'S

InterpretationM& '5 %D5>IS respondents are agree 4ith the ter) high risk and high profit5 #5 '=5C'S are not agree5

I5 What are the reasons of tradingY Particulars 1igh profits -o5 of investor #C Percentage #I5#'S

Interest in speculation Market gro4th Suggest (y others

> #' >I

5$PS #>5DIS =>5%#S

InterpretationM& '5 #5 >5 =5 #I5#'S are investing for high profits5 5$PS is investing for interest in speculation5 #>5DID are investing 4hen the )arket in (oo)5 =I5%#D are investing 4hen they suggest (ye so)e (roker or person5

'#5"ue to increase in sense; has your interest in share )arket increaseY Particulars 3es -o -o5 of investor P' '% Percentage PI5PPS #$5#>S

InterpretationM& PI5PPS investor interest is increased 4ith increasing in share )arket 4hile #$5#>S interest is not increasing5

'>5What kind of attitude you prefer in share )arketY Particulars Rationally 0alculative risk -o of investor >> #' Percentage >P5$PS #>5DIS

Assistance Market de(t

'D #$

'C5%DS ##5=PS

InterpretationM& '5 #5 >5 =5 >P5$PS investor adopting the rationally (ehavior #>5DIS investor adopting the calculative risk (ehavior5 'C5%DS investor adopting the assistance (ehavior5 ##5=PS investor adopting the )arket de(t (ehavior5

'=5 Are you long ter) investor or short ter)Y Particulars 2ong ter) Short ter) Total no5 of investors DP ># Percentage C=5$=S >D5IDS

InterpretationM& The total no5 of investor are %I5 DP investor are long ter) investor5 ># are short ter) investor5

0INDINGS ': There is a gro4th trend in Indian share )arket5 The gro4th can (e seen fro) the follo4ingM &

!: Increase in the nu)(er of stock e;changes5 As 4e see there 4as only P stock e;changes in India in 'IDD (ut at present the nu)(er of stock e;changes increases to ##5 5: Increase in the nu)(er of listed co)panies5 In 'IDD there 4ere only ''#D listed co)panies (ut it increases to '%%>C in #$$I5 #: Increase in the 0apital of 2isted 0o)panies5 In 'IID the capital invested in the share )arket 4as Rs DID%> 0r 4hich increases to Rs5#%CPD% cr in #$$I5 #: The invest)ent level in the share )arket is also increasing5 In #$$= the total invest)ent 4as Rs5 I>DC$> 0r5 This increases to Rs #>CC$I$ in #$$I5 >: As there is an increase in the nu)(er of clientAs account it gives rises to the invest)ent level in the share )arket increases5 In #$$= there are onlyD>5%'$ lakh account 4hich increases to PP5=> lakhs in #$$I5

R/0OM/-"ATIO-S There are )any i)portant things need to kno4 to trade and invest successfully in the stock )arket or any other )arket5 '# of the )ost i)portant things that I can share 4ith you (ased on the study are enu)erated (elo45

'5 23% l$8?6ell ) .). As si)ple as this concept appears to (e6 the vast )a7ority of investors do the e;act opposite5 3our a(ility to consistently (uy lo4 and sell high6 4ill deter)ine the success6 or failure6 of your invest)ents5 3our rate of return is deter)ined '$$S (y 4hen you enter the stock )arket5 #5 The 6&$#* +!(*e& 6 !l8!%6 ( .)& and price is the only reality in trading5 If you 4ant to )ake )oney in any )arket6 you need to )irror 4hat the )arket is doing5 If the )arket is going do4n and you are long6 the )arket is right and you are 4rong5 If the stock )arket is going up and you are short6 the )arket is right and you are 4rong5 Other things (eing e*ual6 the longer you stay right 4ith the stock )arket6 the )ore )oney you 4ill )ake5 The longer you stay 4rong 4ith the stock )arket6 the )ore )oney you 4ill lose5 >5 E-e(% +!(*e& $( 6&$#* &)!& .$e6 37 8 ll .$ '$8" !"' +$6& +!(*e&6 $( 6&$#*6 &)!& )!-e .$"e '$8" 8 ll .$ 37 5 The )ore e;tre)e the )ove up or do4n6 the )ore e;tre)e the )ove)ent in the opposite direction once the trend changes5 This is also kno4n as Lthe trend al4ays changes rule5L =5 If you are looking for H(e!6$"6H that 6&$#*6 $( +!(*e&6 )ake large directional )oves6 you 4ill pro(a(ly never kno4 for certain5 Since 4e are dealing 4ith perception of )arkets&not necessarily reality6 you are 4asting your ti)e looking for the )any reasons )arkets )ove5 A huge )istake )ost investors )ake is assu)ing that stock )arkets are rational or that they are capa(le of ascertaining 4hy )arkets do anything5 To )ake a profit trading6 it is only necessary to kno4 that )arkets are )oving & not 4hy they are )oving5 Stock )arket 4inners only care a(out direction and duration6 4hile )arket losers are o(sessed 4ith the 4hys5 D5 S&$#* +!(*e&6 .e"e(!ll% +$-e " !'-!"#e $1 "e86 $( 6377$(& -e 13"'!+e"&!l6 & so)eti)es )onths in advance5 If you 4ait to invest until it is totally clear to you 4hy a stock or a )arket is )oving6 you have to assu)e that others have done the sa)e thing and you )ay (e too late5 3ou need to get positioned (efore the largest directional trend )ove takes place5 The )arket reaction to good or (ad ne4s in a (ull )arket 4ill (e positive )ore often than not5 The )arket reaction to good or (ad ne4s in a (ear )arket 4ill (e negative )ore often than not5

C5 The trend is your friend5 Since the trend is the (asis of all profit6 4e need long ter) trends to )ake si8ea(le )oney5 The key is to kno4 4hen to get a(oard a trend and stick 4ith it for a long period of ti)e to )a;i)i8e profits5 0ontrary to the short ter) perspective of )ost investors today6 all the (ig )oney is )ade (y catching large )arket )oves & not (y day trading or short ter) stock investing5 P5 3ou +36& le& %$3( 7($1 &6 (3" and cut your losses *uickly if you are to have any chance of (eing successful5 Trading discipline is not a sufficient condition to )ake )oney in the )arkets6 (ut it is a necessary condition5 If you do not practice highly disciplined trading6 you 4ill not )ake )oney over the long ter)5 This is a stock trading syste) in itself5 %5 The /fficient Market 1ypothesis is fallacious and is actually a derivative of the perfect co)petition )odel of capitalis)5 The /fficient Market 1ypothesis at root shares )any of the sa)e false pre)ises as the perfect co)petition paradig) as descri(ed (y a 4ell kno4n econo)ist5 The perfect co)petition )odel is not (ased on anything that e;ists on this earth5 0onsistently profita(le professional traders si)ply have (etter infor)ation & and they act on it5 Most non&professionals trade strictly on e)otion6 and lose )uch )ore )oney than they earn5 The co)(ination of superior infor)ation for so)e investors and the usual panic as losses )ount caused (y (uying high and selling lo4 for others6 creates inefficient )arkets5 I5 Traditional technical and funda)ental analysis alone )ay not ena(le you to consistently )ake )oney in the )arkets5 Successful )arket ti)ing is possi(le (ut not 4ith the tools of analysis that )ost people e)ploy5 If you eli)inate opti)i8ation6 data )ining6 su(7ectivis)6 and other such statistical tricks and data )anipulation6 )ost trading ideas are losers5 '$5 -ever trust the advice and?or ideas of trading soft4are vendors6 stock trading syste) sellers6 )arket co))entators6 financial analysts6 (rokers6 ne4sletter pu(lishers6 trading authors6 etc56 unless they trade their o4n )oney and have traded successfully for years5 -ote those that have traded successfully over very long periods of ti)e are very fe4 in nu)(er5 Feep in )ind that Wall Street and other financial fir)s )ake )oney (y selling you so)ething & not instilling 4isdo) in you5 3ou

should )ake your o4n trading decisions (ased on a rational analysis of all the facts5 ''5 The 4orst thing an investor can do is take a large loss on their position or portfolio5 Market ti)ing can help avert this )uch too co))on e;perience5 3ou can avoid )aking that huge )istake (y avoiding (uying things 4hen they are high5 It should (e o(vious that you should only (uy 4hen stocks are lo4 and only sell 4hen stocks are high5 Since your starting point is critical in deter)ining your total return6 if you (uy lo46 your long ter) invest)ent results are irrefuta(ly (etter than so)eone that (ought high5 '#5 The )ost successful investing )ethods should take )ost individuals no )ore than four or five hours per 4eek and6 for the )a7ority of us6 only one or t4o hours per 4eek 4ith little to no stress involved5

LIMITATIONS
"ue to technology advance)ent no4 )ostly people prefer to do the trading (y their o4n through online trading )ode5

"ue to increase in the sense; level the invest)ent level in share )arket increases5 -o4 people invest )ore in share )arket irrespective of de(t )arket5 There )ay (e so)e (ias infor)ation provide (y Investor5 The last (ut the )ost i)portant point to that survey 4as carried through @uestionnaire and the @uestions 4ere (ased on perception5 Most i)portant is positioning5 ut there )ay (e certain aspects not taken into consideration5

2I2LIOGRA,/Y 4445se(i5gov5in 4445(seindia5co) 4445nseindia5co)

 4445a)fiindia5co) 4445nsdl5co5in 4445cdslindia5co) 4445google5co)

IUESTIONNAIRE Analytical Study on Investor Preference With Respect To Increasing Trend in Share Market

'5 "o you invest in share )arketY 3es -o #5 If yes then in 4hich invest)entY /*uity Mutual <unds anking sector Post office Insurance

>5 "o you invest other then share )arketY 3es6 -o If yes6 Please specify your )ode of invest)ent GGGG5 =5 "o you invest through Online Trading or through Offline TradingY Online Trading Offline Trading

D5 Through 4hich (roking house6 you are doing your tradingY GGGGGGGGGGGGGGGGG55 C5 1o4 long you have (een investing in stock )arketY 2ess than a year '&D years More than D years

P5 In 4hich instru)ent you are investingY GGGGGGGGGGG55

%5 What is your Trading PreferenceY Intraday "elivery I5 1ave you increased your invest)ent levelY 3es -o If yes then6 /arlier invest)ent levelGGGGGG -e4 invest)ent levelGGGGGGG

<uture? option

'$5 "o you think ne4 heights of sense; is good sign for gro4th of econo)yY 3es -o ''5"o you (elieve in high risk6 high returnsY 3es -o '#5What are the reasons of tradingY 1igh profits Interested in speculation Market gro4th Suggested (y others5 '>5"ue to increase in sense;6 has your interest in share )arket increasesY 3es -o '=5What kind of attitude you prefer in share )arketY Rationally 0alculative risk Assistance Market "e(t 'D5Are youY 2ong Ter) Investor

Short Ter) Investor

-a)eM 555GGGGGGGGGG5 AgeM GGGGGGGGGGGG5 OccupationM GGGGGGGG5 @ualificationM GGGGGGGG5 Marital StatusM GGGGGGGG55