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A
PROJECT REPORT
ON
ANALYSIS OF INVESTMENT AWARENESS WITH SPECIAL REFERENCE
INTO EQUITY TRADING
FOR
SUBMITTED TO
SINHGAD INSTITUTE OF BUSINESS MANAGEMENT
CHANDIVALI
SREELATA GUNTAPALI.
SUBMITTED BY
SRINATH GHISALAL PAREEK.
MMS 2017-19
ROLL NO. 52
FINANACE
Page |2
CERTIFICATE
This is to certify that Srinath Ghisalal Pareek has successfully completed the project work as a part of academic
Date: _________________
DIRECTOR
SIBM
ACKNOWLEDGEMENT
This is a matter of a great pleasure as well as great privilege and pride for me to
present this project report. This project become possible only due to full cooperation
of mentor at Stock Holding Co-operation of India.
I am also thankful to my institute mentor, Prof Sreelatha G and my institute director,
Dr Mohanty for their continuous support and guidance.
Research Report is a combined effort including this one also, so I would like to thank
to all who have helped me completion of this report purposeful.
Further I would like to thank my friends and well wishers for the valuable support
and suggestions which helped me to complete this survey.
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STUDENT DECLARATION
I undersigned Srinath Ghisalal Pareek a student of SIBM, MBA 3rd semester,
declare that summer internship project titled “analysis of investment awareness
with special reference to in equities trading” is a result of my/our own work and
my/our indebtedness to other work publications, references, if any, have been duly
acknowledged. If I/we are found guilty of copying any other report or published
information and showing as my/our original work, I understand that I/we shall be
liable and punishable by Institute or University, which may include ‘Fail’ in
examination, ‘Repeat study & re-submission of the report’ or any other punishment
that Institute or University may decide.
Roll Number:
Signature:
Page |4
TABLE OF CONTENTS
CHAPTER 1
6-11
1.
COMPANY OVERVIEW
CHAPTER 2 12
2.
REVIEW OF LITERATURE
CHAPTER 3 13-15
3.
INTRODUCTION TO TOPIC
CHAPTER 4 16
4.
RESEARCH METHODOLOGY
CHAPTER 5
CHAPTER 6
6. 23-25
FINDINGS & SUGGESTIONS
7.
CONCLUSION 26
8.
BIBLIOGRAPHY 27
9.
ANNEXURE 28-30
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LIST OF TABLES
1. 16
INVESTMENT BEHAVIOURS BY GENDER
2. 17
ANALYSIS OF AGE OF INVESTOR
18
4. ANALYSIS ON THE BASIS OF SECTOR
5. 19
ANALYSIS OF INVESTMENT AS PER QUALIFICATION
6. 19
ANALYSIS OF PREFERENCE AS PER COMPAINES
7. 20
ANALYSIS AS PER GENDER
20
8. ANALYSIS AS PER INCOME
21
9. ANALYSIS AS PER MARITAL STATUS
21
10. ANALYSIS AS PER OCCUPATION
22
ANALYSIS AS PER WHY THEY CHOOSE EQUITY
11. INVESTMENT
22
12. ANALYSIS AS PER SOURCES
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HISTORY
Stockholding was incorporated as a Public Limited Company in 1986. It has been jointly promoted by leading
Banks and Financial Institutions. Stockholding is a subsidiary of IFCI Limited. The equity capital of Stockholding
is presently held by LIC, GIC, IFCI Ltd., SU-UTI, NIA, NIC, UIC, and TOICL, all leaders in their respective
fields of business.
Stockholding began by offering custodial and post trading services, adding depository services and other services
to its portfolio over a period.
Stockholding has established itself in India as a one-stop solution provider in the Financial Services domain.
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Well integrated front and back office, paper and electronic systems. A focussed Client Relation Team to
manage your needs & queries. A single point contact for your comfort.
In-house capability to address all IT needs in terms of software development, maintenance, back office
processing, database administration, network maintenance, backups and disaster recovery.
Multi-level security is maintained in software, applications and guards to access to various data, client and
internal reports.
Regular Audits internal and external, by SEBI, Depositories, Clients and compliance to rules and regulations
Constant review and benchmarking of processes to ensure adherence to global best practices
Financial Solutions
I. Demat Services
Our Depository Participant services cater to all your individual investment needs.
Our customer-centric account schemes have been designed keeping in mind the investment psyche of our
clients.
Dematerialisation is the process of conversion of shares from physical form to the electronic mode. Our
dedicated demat team enable you to convert your physical holdings in shares/ Debentures/ Bonds/ G-secs into
electronic mode in a quick and hassle-free manner.
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Stockholding in the capacity of Sub-broker has been providing Share Broking Services in association with SSL,
the member Broker on BSE and NSE.
Broker Account can be opened from any of the Stockholding Branches. ONLINE trading facility is also
available.
Stockholding in the capacity of Sub-broker has been providing Share Broking Services in association with SSL,
the member Broker on BSE and NSE.
Stockholding offers products ranging from fixed income investments like FDs, Bonds, Debentures and Capital
Gain Bonds to variable income products like IPO's of equities and Mutual Funds
It is a Gold accumulation plan for customers who wish to buy and accumulate Gold in a fair and transparent
manner.
The customer has complete discretion about amount of purchase, its frequency and timeline for taking delivery
of Gold. The gold purchased for the customers would be set-aside in an allocated enclosure with full insurance
cover and security. Customers can accumulate gold without worrying about safe keeping of the metal.
Govt of India promoted PFRDA (Pension Fund Regulatory and Development Authority) has introduced the New
Pension System (NPS) to all citizens of India with the objective of promoting old age income security. NPS
empowers subscribers to plan their own pension under the “Defined Contribution” concept. It not only helps to
save for post-retirement spending but is also a good investment and tax planning tool. PFRDA appoints Points of
Presence (POPs) which act as the link between subscribers and PFRDA to promote the NPS.
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Our Value
• Customer First.
• Relationship building.
Leslie Kwoh/The Star-Ledger (2011). As a financial adviser for multimillionaires across the country,
Liz Miller describes her investment strategy Where she speaks about long term investments, here she
speaks about a Barclay’s wealth report finding where she says women tend to trade less regularly as
men tend to trade. Barclays Wealth commissioned U.K. firm Ledbury Research polled more than 2,000
high net-worth individuals around the world in January and February.
Rajarajan, V. (2000) led an investigation on 'Financial specialist's Life Styles and Venture attributes
with a question discover ways of life in view of division of individual. It was done in the State Capital,
Where Total 405 Responses from the Poll. It Uncovered the Level of Costs, Income and Venture size of
the family, his study revealed that there was an association between the lifestyle clusters and investment
related characteristics.
Shanmugam, R and Muthuswamy, P (1998) empirical study aimed to evaluate the decision-making
process of individual investors in the Coimbatore city, Tamil nadu. The study throws light on areas like
views of individual share investors about their objectives of investment, basic approach of investment
decisions and the nature of their equity portfolio. This study was carried out with 201 investors. They
were divided into three groups namely tax savers, traditionalists and risk takers. The findings of the
study revealed that majority of shareholders were salaried people. They were young and mostly first-
generation investor’s. The time spent on Investment analysis was inadequate and equity portfolio
diversification was moderate. Regional Industry had its impact on Industrial Portfolio. Educational level
of investors had its impact on the use of technical analysis. Occupational category had an impact on the
use of fundamental approach.
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Equity
The term equity means stocks. It is the ownership interest in the business. The equity investment means
the buying and holding of shares of stocks on a stock market by a firm to get income and capital
gaining. It refers to the amount of capital contributed by the owners or the difference between a
company’s total assets and its total liabilities. It is the security available in private company and is called
the private equity.
Investor Equity
It implies the investors value. It works as a capital which is utilized to purchase the advantages. The
principle sources are the cash at first put resources into an organization alongside the extra speculations
made later. The other source is held profit the organization can construct the business. The stock trades
list offers of normal value and in addition different securities writes. The stock trade is where the stocks
are exchanged.
At the point when the proprietors are investors, the premium can be called investors' value; the
bookkeeping continues as before, and it is possession value spread out among investors. On the off chance
that all investors are in one and a similar class, they share similarly in proprietorship value from all points
of view. Be that as it may, investors may permit distinctive need positioning among themselves by the
utilization of offer classes and choices.
Types of Investment
Stocks
Buying shares of stock gives the buyer the opportunity to participate in the company’s success via
increases in the stock’s price and dividends that the company might declare. Shareholders have a claim
on the company’s assets in the event of liquidation, but do not own the assets.
Holders of common stock have voting rights at shareholders’ meetings and the right to receive dividends
if they are declared. Holders of preferred stock don’t have voting rights but do receive preference in terms
of the payment of any dividends over common shareholders. They also have a higher claim on company
assets than holders of common stock.
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Bonds
Bonds are debt instruments whereby an investor effectively is loaning money to a company or agency
(the issuer) in exchange for periodic interest payments plus the return of the bond’s face amount when
the bond matures. Bonds are issued by corporations, the government plus many states, municipalities
and governmental agencies.
A typical corporate bond might have a face value of Rs.1000 and pay interest semi-annually. Interest on
these bonds are fully taxable, but interest on municipal bonds is exempt from taxes and may be exempt
from state taxes for residents of the issuing state. Interest on Treasuries are taxed at the Central level
only.
Bonds can be purchased as new offerings or on the secondary market, just like stocks. A bond’s value
can rise, and fall based on several factors, the most important being the direction of interest rates. Bond
prices move inversely with the direction of interest rates.
Mutual funds
A mutual fund is a pooled investment vehicle managed by an investment manager that allows investors
to have their money invested in stocks, bonds or other investment vehicles as stated in the fund’s
prospectus.
Mutual funds are valued at the end of trading day and any transactions to buy or sell shares are executed
after the market close as well.
Mutual funds allow small investors to instantly buy diversified exposure to several investment holdings
within the fund’s investment objective. For instance, a stock mutual might hold 50 or 100 or more different
foreign stocks in the portfolio.
An initial investment as low as 1000 (or less in some cases) might allow an investor to own all the
underlying holdings of the fund. Mutual funds are a great way for investors large and small to achieve a
level of instant diversification.
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ETFs
ETFs or exchange-traded funds are like mutual funds in many respects but are traded on the stock
exchange during the trading day just like shares of stock. Unlike mutual funds which are valued at the end
of each trading day, ETFs are valued constantly while the markets are open.
Many ETFs track passive market indexes like the S&P 500, the Barclay’s Aggregate Bond Index, and the
Russell 2000 index of small cap stocks and many others.
In recent years, actively managed ETFs have come into being, as have so-called smart beta ETFs which
create indexes based on “factors” such as quality, low volatility and momentum.
Since both the ETF and the basket of underlying assets are tradeable throughout the day, traders take
advantage of momentary arbitrage opportunities, which keeps the ETF price close to its fair value. If a
trader can buy the ETF for effectively less than the underlying securities, they will buy the ETF shares
and sell the underlying portfolio, locking in the differential.
Some ETFs utilize gearing, or leverage, using derivative products to create inverse or leveraged ETFs.
Inverse ETFs track the opposite return of that of the underlying assets – for example, the inverse gold
ETF would gain 1% for every 1% drop in the price of the metal. Leveraged ETFs seek to gain a multiple
return of that of the underlying. A 2x gold ETF would gain 2% for every 1% gain in the price of the metal.
There can also be leveraged inverse ETFs such as negative 2x or 3x return profiles
Alternative investment
Beyond stocks, bonds, mutual funds and ETFs, there are many other ways to invest. We will discuss a
few of these here.
Real estate investments can be made by buying a commercial or residential property directly. Real estate
investment trusts (REITs) pool investor’s money and purchase properties. REITS are traded like stocks.
There are mutual funds and ETFs that invest in REITs as well.
Hedge funds and private equity also fall into the category of alternative investments, although they are
only open to those who meet the income and net worth requirements of being an accredited investor.
Hedge funds may invest almost anywhere and may hold up better than conventional investment vehicles
in turbulent markets.
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Research Methodology
To study the investors awareness about investment in Equities. A structured questionnaire was prepared
Which Was Distributed Through personal contacts & with the help of executives of the participating
broking agencies. The questionnaires were distributed to the clients of various stock broking agencies in
Mumbai and 60 responses were ultimately received.
This Chart Suggests that 36% Of females Market is opposed to adopting a Buy and
Hold Strategy. Whereas the Numbers for Males were 41%.
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• The interpretation from the table above is regarding the variable of Age.
• Its Highest at 38.46% At the age group of 20-25.
• It’s the lowest at 9.2%, At the age Group of 55+.
• Whereas It is 10.76 at The Group 25-45.
• Its 30.76 % At the age group of 45-55.
• The interpretation from the table above is regarding the variable of investors awareness level’s.
• At level 10 there are 24.6% Investors.
• At Level 3, There are 1.5% investors.
• At Level 1,4,7 & 8 there are 10.76 % Investors.
• At the Level 2 There are 4.6% Investors.
• At Level 6 There are 3.0% Investors.
• At Level’s 5 & 9 The Investors are 15.38% & 10.3%.
• The interpretation from the table above is regarding the variable of Sector Preferences.
• Banking Sector is the most preferred as it stands at 50.76%
• IT Sector Stands At 21.5%.
• FMCG and MNC Stand At 7.6%.
• PHARMA Stands At 9.2% Which is The Least Preferred.
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• The interpretation from the table above is regarding the variable as per companies.
• Maximum Number of Investors Preferred Infosys which stands at 40%.
• The Next Highest is HDFC BANK which is chosen by 36.92%.
• TATA MOTORS & SUN PHARMA Stand At 9.2% and 7.6% Respectively.
• The Least Preferred was ITC Which Stood at 6.15%.
• The interpretation from the table above is regarding the variable as per Qualification.
• The interpretation from the table above is regarding the variable of Gender.
• Male Investors are Highest at 53.84%
• Female Investors Stand at 46.15%
• The interpretation from the table above is regarding the variable of Income.
• Investors with the income of 30,000-40,0000 tend to invest more it stands at 30.7%.
• Investors with the income of 40,000+, There number’s stand at 24.6%.
• Investors with the Income’s 10,000-20,000 and 20,000-30,000 Are 29.2% & 15.38%.
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• The interpretation from the table above is regarding the variable of Marital Status.
• Married Investors are 47.6%
• Whereas Single Investors Are 52.30%.
• The interpretation from the table above is regarding the variable of Occupation.
• Salaried People Invest The most they are 53.8 %.
• Professionals and Business persons are 23.07%.
• Retired Investors are 18.46%.
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• The interpretation from the table above is regarding the variable of Selecting Equities.
• 49.2% Investors Choose Equity Investment for Better Returns.
• Tax Advantage & Liquidity Preferred Investors are 10.76% & 18.46%.
• 21.5% Investors Choose Equity for Dividend.
• The interpretation from the table above is regarding the variable of Preferred Source of Investment
Decision.
• Newspapers & Magazines & Broker Analysts is by used 53.77% of the investors.
• Investment related websites stand at 16.92%.
• Whereas Other Sources are being used by 7.6 % of the Investors.
• TV Channels Are Preferred by 21.5% Of the Investors.
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A. FINDINGS: -
I. ON BASIS OF AGE
• Its Highest at 38.46% At the age group of 20-25.
• It’s the lowest at 9.2%, At the age Group of 55+.
• Whereas It is 10.76 at The Group 25-45.
• Its 30.76 % At the age group of 45-55.
IV. OCCUPATION
• Salaried People Invest The most they are 53.8 %.
• Professionals and Business persons are 23.07%.
• Retired Investors are 18.46%.
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V. MONTHLY INCOME
• Investors with the income of 30,000-40,0000 tend to invest more it stands at 30.7%.
• Investors with the income of 40,000+, There number’s stand at 24.6%.
• Investors with the Income’s 10,000-20,000 and 20,000-30,000 Are 29.2% & 15.38%
• Maximum Investment Comes From 30,000-40,000+ Which Is 55.3%.
X. AS REFFERING TO SOURCES
• Newspapers & Magazines & Broker Analysts is by used 53.77% of the investors.
• Investment related websites stand at 16.92%.
• Whereas Other Sources are being used by 7.6 % of the Investors.
• TV Channels Are Preferred by 21.5% Of the Investors.
B. SUGGESTIONS
• More Investment Awarness Should be Provided to the Age group of 40-55+, Such Awarness can
be Provided Through Seminars, Even People from the age group of 20-25 Can hold Campaigns
for People of These Age Group and Make Them More About Equity Investment.
• Females Should Invest More in the equity market, As well as They should be encouraged To
Invest much more than the current rate, to Make There Future Secure.
• Investors Should Even Consider FMCG Sector for Investment Fast moving consumer goods
(FMCG) is the 4th largest sector in the Indian economy. FMCG sector has grown from US$ 31.6
billion in 2011 to US$ 52.75 billion in 2017-18.
• Investors Should Even Consider ITC as it’s the leader Of Indian Tobacco Market, The Tobacco
Industry Grows at A stable Rate of 5% P.A. So, ITC Should Be Considered A Good Investment
for The Long Run.
• Investors Unbiased of Their Occupation Should Start Investing So as To Secure A Better Life
After Retirement. Companies Like HDFC BANK, INFOSYS, ITC, TATA MOTORS are There
to Stay for Long, Hence They Should Be More Preferred by the Investors.
• The Unmarried Investors Can Encourage Married Investors as well as make them more aware
About Investing in the Equity Market. Newspapers & Business News Channels Should be
• Preferred More by The Investors, Before Making Any Investment Decisions.
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C. CONCLUSION:
❖ Investors are aware about the stock market as the numbers suggested that 53.72% of the investors where
from the level of 7-10.
❖ Female and male investors go head to head when it comes to investment in equity at 46.15% & 53.84%.
▪ The investors from the age group of 20-45 are the Highest which is 56.6%.
▪ 50.76 % Investors Prefer Banking Sector More as compared to any other for investing their money.
▪ Infosys was the most Preferred company for Equity investment by the investors at 4%.
▪ People With the income range of 30,000-40,000 invest the most at 30.7%.
▪ 30.7% Investors choose newspapers & broker analyst for investment decisions.
▪ 49.2% Investors say they choose equity investment due to its better returns.
▪ Single marital status people invest the most at 52.30%.
▪ In todays, Time Females Invest as similar as men. So, Investments aren’t anymore dominated by
males.
▪ Investors are Very much aware about the market as well as they prefer various sources such as
newspapers etc, before investing money.
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BIBLOGRAPHY
BIBLIOGRAPHY:
Rajarajan. V (2000) “Investors’ Lifestyles and Investment Characteristics”,
Finance India, Vol. XIV, No. 2, June 2000, pp.465-478
Shanmugam. R, and Muthusamy P, “Decision Process of Individual
Investors” Doctoral Dissertation
at Bharathiar University, 1998.
Star-Ledger, L. K. (2011, June 15). NEW JERSEY REAL-TIME NEWS.
NEW YORK: NJ TIMES.
Anonymous (2018, June 10). Stockholding. Retrieved from Stockholding:
https://online.stockholding.com
Writers, I. (2018, June 10th). Investopedia. Retrieved from Investopedia:
https://www.investopedia.com/university/beginner/beginner5.asp
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-ANNEXURE
QUESTIONNAIRE
Q1. AGE
20-25
25-35
35-45
45+
Q2. GENDER
MALE
FEMALE
Q4. OCCUPATION
SALARIED
BUSINESS
PROFESSIONAL
RETIRED
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Q6. INCOME
10,000-20,000
20,000-30,000
30,000-40,000
40,000+
1 2 3 4 5 6 7 8 9 10
BANKING
FMCG
IT
PHARMA
MNC
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HDFC BANK
INFOSYS
ITC
TATA MOTORS
SUN PHARMA
HIGHER RETURNS
DIVIDEND
TAX ADVANTAGE
LIQUIDITY
TV CHANNELS