A Project Report On

“STUDY ON INVESTMENT BEHAVIOUR

STALLION CAPITAL MANAGEMENT”

In partial fulfillment of the requirements for the award of post

graduate degree of
Masters of Business Administration

2017-2019

SUBMITTED BY GUIDED BY

BALRAM JHA YASHWANT KUMAR

BHARATI VIDYAPEETH DEEMED UNIVERSITY SCHOOL OF DISTANCE

EDUCATION
Academic Study Center - BVIMR, New Delhi An ISO 9001:2008 Certified Institute

1
 Where We Bridge the Financial Gap

Date: 1st September 2018

To whomsoever it may concern

This is to certify that Mr. Balram Jha has successfully completed hs internship from 1st July

2018 - 31st August 2018. During his internship, organization found her to be regular and
hardworking.

Grade Allotted:+

Best Wishes

(Authorized Signatory)

Anna Gupta

Country Head- Human Resources

Stallion Capital Management

Stallion Capital Management

408 RG Trade Tower, Netaji Subash Place-110034
011-40079344
info@stallioncap.in

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 STUDENT UNDERTAKING

Certificate of Originality

I Balram Jha , MBA(Finance) Semester 3 would like to declare that the project report entitled “ A
study on investment behaviour in Stallion Capital Management Submitted to Bharati Vidyapeeth
University Pune, School of Distance Education Pune, Academic Study Centre BVIMR New Delhi in
partial fulfilment of the requirement for the award of the degree.
It is an original work carried out by me under the guidance of Yashwant Kumar.
All respected guides, faculty member and other sources have been properly acknowledged and the
report contains no plagiarism.
To the best of my knowledge and belief the matter embodied in this project is a genuine work done by
me and it has been neither submitted for assessment to the University nor to any other University for
the fulfillment of the requirement of the course of study.

Student Name with Signature

Balram Jha

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 PREFACE

There is a vast difference between theory and practical applicability of management concepts,
principles and theories in any industry. This practical training programme in the course is designed
with an objective of bridging the gap between the theory and practical applicability of management
concepts and theories studied during the MBA programme and their applicability in an industry.

I am very fortunate to have an opportunity to undergo my training in “Stallion Capital Management”.

This Project training has been indeed a great learning experience which has provided a lot of exposure
regarding corporate functional environment in an industry. It has been a great pleasure for me to do
my project work in such an esteemed organization.

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 ACKNOWLEDGEMENT

Many persons have contributed to make this project report on “A study on investment behaviour in
Stallion Capital Management” a reality. I would especially like to express my appreciation to Mr.
Yashwant Kumar for his unstinted support, encouragement and his painstakingly and meticulous effort
towards developing this project.

I acknowledge the help and cooperation received from all the faculty members of Stallion Capital
Management. Several colleagues and students have contributed directly and indirectly to the contents
of this project, as they had given me numerous ideas. Their criticism gave me the much-needed hints
about the areas that needed elaboration and amendments and also to present them with greater clarity.

Finally, I wish to express my sincere thanks to all my family members, especially my parents for their
constant moral support and encouragement.

I would welcome constructive suggestions to improve this project report, which can be implemented in
my further attempts.

Thanking you!

Balram Jha

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 CONTENTS

Chapter Title Page No

1 Introduction 07-18

About the company 07

Porter’s five forces model of competition 16

2 Research Methodology 19-24

Statement of the problem 20

Objectives and scope of the study 20-21

Managerial usefulness of the study 21

Type of research and research design 22

Data collection methods 23

Limitation of study 24

3 Conceptual Discussion 25-42

Review of literature 26

History and development of the industry 40

4 Data Analysis 43-63

5 Findings and Conclusions 61-63

6 Suggestions 64-65

Appendices
Bibiliography

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 CHAPTER 1

INTRODUCTION

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 COMPANY PROFILE

Stallion Capital Management :

Stallion is a wealth advisory firm. It is India's one of few "Multi Family Office Firm" founded by
members having decade of experience in the field of financial domain. Stallion was operates out of
two offices at New Delhi & Bengaluru (Soon to start operation in pune, Lucknow and Hyderabad).

The foundation of Stallion was guided by a single minded client centric approach.
Its model has been developed keeping in mind the very needs of a client. Stallion's unique selling point
is that it brings all the investment of client under one roof and that being guided by Unique IPS
(Investment Policy Statement). In other words a Stallion treat every client as unique and provides
solution based on client need, financial position and circumstances.
Over time the acceptance of Stallion's financial planning tools by private clients at large and the
goodwill that it has generated in the Private Wealth Industry continues to be the source of energy for
its growth. Today Stallion serves the needs of Middle and Senior level professional, Entrepreneurs,
Businessman / Woman, Budding Investors.

Currently stallion is working closely with 330 HNI families and managing their portfolio of
insurance. Mutual fund and real estate .The ratio of 25 clients per adviser guarantees full focus and
personalized touch to each clients from Stallion.

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 BRIDGES THE FINANCIAL GAPS
WE MANAGE BETTER + WE ADVICE + WE HELP OUR CLIENTS ACHIEVE FINANCIAL
INDEPENDENCE

It work with successful people at different stages of their lives and provide them with the expert
strategic financial advice they require to achieve, or maintain financial independence.
The clients want to take control of their financial future and we help them achieve this goal. By
leveraging company’s expertise to create and implement a strategic financial roadmap we can assist
them to protect, grow and manage their wealth.
The comprehensive wealth management services are free for their clients to pursue their dreams
and delegate the task of efficiently managing their wealth to company, which is a product of trust
because delegation is a follower of faith and trust.
Though, to many this is easier said than done, but the company’s focused intentions and understating
of the wealthy families in India and the need for reliable private advisor in India has helped them
realize their dream of building an admirable Wealth Management Practice.

MISSION OF STALLION CAPITAL MANAGEMENT

 To put all the financial transactions of client at one place for easy access and planning.

VISION OF STALLION CAPITAL MANAGEMENT

 To be most admired wealth management firm with best components.

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Services provided by Stallion Capital Management:

i. TAX PLANNING:
Tax planning is simply optimizing both the timing and strategy of your business tax matters, to ensure
that you pay as little tax possible. Those strategies should be geared to optimize and improve
business growth. Tax planning is an essential tool for any business to undertake each year in order
to effectively plan ahead towards the end of the financial year to ensure no nasty tax bills appear
unexpectedly.

ii. PROPERTY ADVISORY SERVICES:

Stallion offer property advisory services for all residential and commercial properties, rendered by
our expert team members having thorough market knowledge in residential, industrial leading
Prices.

We work on the following area:

 Negotiate On Property valuation / deal on behalf of clients and get better

value of money.
 To make appropriate proposal favouring our clients.
 Projects offering assured return on investment
 Cash flow analysis & financial modelling
 Legal documentation of properties in a methodical manner.

iii. MUTUAL FUNDS ADVISORY:

Mutual Funds are measured on relative performance. Their performance is compared to a
relevant index such as the S&P 500 Index or to other Mutual Funds in their same sector. Hedge funds,
on the other hand, are expected to deliver absolute returns by attempting to make profits under all
circumstances, even when the relative indices are down.

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iv. WEALTH MANAGEMENT:
The term Wealth Management refers to a professional investment and advisory service that offers
financial planning, investment management and other types of specialized. financial advice. It is a
process that aims to provide techniques and plans that allows an individual or a company to attain all
the possible goals in a systematic pragmatic manner.

v. RETIREMENT & ESTATE PLANNING:

The goal of retirement planning is to achieve financial independence .As people tend to live
longer, a new reality about retirement savings. They have to stretch for a longer period of time. So, we
here to help you with the best advice.

vi. BUSINESS LOAN ASSISTANCE:

Stallion capital management deploy technology and apply innovation to create unique and
compelling propositions that help you do what you always wanted to do. Hereunder are a host of
unique features and benefits that you enjoy with Business Loans from Bank, Financial Institutions
& FDIs.

vii. INVESTMENT & PORTFOLIO MANAGEMENT:

A portfolio Management refers to the science of analysing the strengths, weaknesses, opportunities
and threats for performing wide range of activities related to the one's portfolio for maximizing the
return at a given risk. It helps in making selection of Debt vs. Equity, Growth VS Safety, and various
other trade-offs.

viii. INSURANCE ADVISORY:

Insurance is a term used to refer to the actions, systems, or business where the financial protection
(or financial compensation) to people, property, health and so forth to get reimbursement form
the events that cannot be expect

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Clients
Client base of the company varies from Entrepreneur to service professionals, old to young and
seasoned to first time investor. Client list is such that it would entice anybody to opt for their
Services Company has decided to build a focused approach to selected specific client only. Its aim is to
serve serious client with the vision of long term relation.

Clients profile:

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Clients age profile:

13
Key Competitors

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SWOT Analysis

 Successful diversification in other

fields such as training programmes
through various parts of world
 Professional consultant with experience
of more than 20 years
STRENGTH
 Good corporate tie-ups, like with HDFC
Life, ICICI, etc.
 Solution to all financial problems under
one roof.
 Multi-lingual staff

 Low key I.T. infrastructures as

compared to big brands
 Low marketing and brand
WEAKNESS presence
 Lack of track record
 Fewer formal training programmes
 Growing rural markets
 Earning urban youth looking for
OPPORTNITIES investments
 Could use their customer
relationships for increasing
database
 Cross selling through financial
services such as banking

 Competition from large companies

THREATS  Increasing no. of advisory firms

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Analysis of–Porter’s 5 Forces Model

Porter developed these (5) forces to be a framework in where a business strategic manager can
gain that competitive edge over its rival firms. Even though it may be viewed as simplistic, it is a
powerful tool in understanding where power lies in any given business situation. With such
understanding, you can see where your strengths and weakness are and how you can avoid taking
the wrong steps.

Fig: 4.1
Porters 5 Forces Model

1. Threat of New Entrants.

2. Bargaining power of suppliers
3. Bargaining Power of Customers
4. Competitive Rivalry between existing players
5. Threat of Substitutes.

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 1) Threat of new entrants : The easier it is for new companies to enter the industry, the more
cut-throat competition there will be. Factors that can limit the threat of new entrants are known
as barriers to entry. Some examples include:

 Existing loyalty to major brands

 Incentives for using a particular buyer (such as frequent shopper programmes)
 High fixed costs
 Scarcity of resources

2) Power of Suppliers: This is how much pressure suppliers can place on a business. If one
supplier has a large enough impact to affect a company’s margins and volumes, then they hold
substantial power. Here are a few reasons that suppliers might have power:
 There are very few suppliers of a particular product
 There are no substitutes
 The product is extremely important to the buyer, they cannot do without it
 The supplying industry has a higher profitability than the buying industry
 Supplier switching costs relative to firm switching costs

3) Power of Buyers/ Customers: This is how much pressure customers can place on a business.
If one customer has a large enough impact to affect a company’s margins and volumes, then
they hold substantial power. Here are a few reasons that customers might have power
 Small number of buyers
 Purchases of large volumes
 Switching to another (competitive) product is simple
 The product is not extremely important to the buyer, they can do without it for a period of
time.

4) Availability of Substitutes

What is the likelihood that someone will switch to a competitive product or service? If the cost of
switching is low, then this poses to be a serious threat. Here are a few factors that can affect the threat
of substitutes:

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 Buyer propensity to substitute
 Relative price performance of substitutes
 Buyer switching costs

5) Competitive Rivalry
And last but not least, this describes the intensity of competition between existing firms in an industry.
Highly competitive industries generally earn low returns because the cost of competition is high. A
highly competitive market might result from:
 Many players of about the same size, no dominant firm.
 Little differentiation between competitors products and services.
 A mature industry with very little growth.
 Companies can only grow by stealing customers away from competitors

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 CHAPTER - 2

RESEARCH METHODOLOGY

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Problem Statement

The particular topic is mainly selected to analyse “Investor’s attitude and the investor’s behaviour
towards Stallion Capital Management The comprehensive statement of problem can thus be stated as
“Investor investment behaviour towards Stallion Capital Management”.
This analysis was carried out to give more knowledge and broader view to the consumer investment
behaviour in the Stallion Capital Management. As the investors are not well educated about the various
options in which they can invest in their attitude towards investments are guided by so many external
factors and once they decide to invest, the major problem starts with the lack of proper agency
(financial advisor/consultant) to guide the investors according to their preference. If it at all the
investors decide to invest, they take a risk of losing their hard earned money. Hence it is very important
that the investors knowledge about the investment options available in Stallion Capital Management
are broadened and thus gaining a positive attitude towards the investment behaviour.

Objectives

Primary Objective

1) To study Investment behaviour of Individual Investor in Stallion Capital Management

Secondary objective

1) To understand in depth about Stallion Capital Management.

2) To find out how investors get information about the various financial instruments.

3) The type of financial instruments, they would prefer to invest.

4) The duration for which they would prefer to keep their money invested.

5) What are the factors that they consider before investing?

6) To give some recommendations to the investors that where they should invest.

7) To know the risk tolerance level of the individual investor and suggest a suitable portfolio.

8) To develop a profile of sample Indian individual investor in terms of their demographics and

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demographics based on occupation of the sample investor.

SCOPE OF THE STUDY

The project will give an idea about the investment behaviour of the investors in Stallion Capital
Management. It will guide them in creating strategies for sales force to target their potential
customers .Questionnaire developed for the survey will help the stallion managers to identify its
potential customers for a particular product. The study will also guide them to identify the need
of the future generation and their investment styles which will help in the development of the
product or service for this generation.

The scope of the study was limited to Delhi.

MANAGERIAL USEFULNESS

Investment decisions require special attention because of the following reasons:

• They influence the firm’s growth in the long run
• They affect the risk of the firm
• They involve commitment of large amount of funds
• They are irreversible, or reversible at substantial loss
• They are among the most difficult decisions to make.

Growth
The effects of investment decisions extend into the future and have to be endured for a longer period
than the consequences of the current operating expenditure. A firm’s decision to invest in long-term
assets has a decisive influence decision to invest in long-term assets has a decisive influence on the rate
and direction of its growth. A wrong decision can prove disastrous for the continued survival of the
firm; unwanted or unprofitable expansion of assets will result in heavy operating costs to the firm. On
the other hand, inadequate investment in assets would make it difficult for the firm to compete
successfully and maintain its market share.

Risk
A long-term commitment of funds may also change the risk complexity of the firm, if the adoption of
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an investment increases average gain but causes frequent fluctuations in its earnings, the firm will
become more risky. Thus, investment decisions shape the basic character of a firm.

Funding
Investment decisions generally involve large amount of funds, which make it imperative for the firm to
plan its investment programmers very carefully and make an advance arrangement for procuring
finances internally or extremely.

Irreversibility
Most investment decisions are irreversible. It is difficult to find a market for such capital items once
they have been acquired. The firm will incur heavy losses if such assets are scrapped.

Complexity
Investment decisions are among the firm’s most difficult decisions. They are an assessment of future
events, which are difficult to predict. It is really a complex problem to correctly estimate the future
cash flows of an investment economic, political, social and technological forces cause the uncertainty
in cash flow estimation.

TYPE OF RESEARCH AND RESEARCH DESIGN

Research Methodology is a way to systematically solve the research problem. The Research
Methodology includes the various methods and techniques for conducting a research. Research is an
art of scientific investigation. In other word research is a scientific and systematic search for pertinent
information on a specific topic. The logic behind taking research methodology into consideration is
that one can have knowledge about the method and procedure adopted for achievement of objective of
the project.

Sampling technique
Initially, a rough draft was prepared keeping in mind the objective of the research. A pilot study
was undertaken in order to know the accuracy of the questionnaire. The final questionnaire was

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arrived at only after certain important changes are incorporated. Convenience sampling
technique used for collecting the data from different investors. The investors are selected by the
convenience sampling method. The selection of units from the population based on their easy
availability and accessibility to the researcher is known as convenience sampling. Convenience
sampling is at its best in surveys dealing with an exploratory purpose for generating ideas and
hypothesis.

Sampling unit:
The respondents who are asked to fill out the questionnaires are the sampling units. These
comprise of employees of MNC‟s, government employees, housewives, self- employed,
professionals and other investors.

Sampling size:
The sample size is restricted to only 70, which comprised of mainly people from different
regions of Delhi due to time constraints.

Sampling area:
The area of the research is Delhi.

DATA COLLECTION AND ANALYSIS:

Data Collection
Information has been collected from both Primary and Secondary Data.
 Secondary sources- Secondary data are those which have already been collected by someone
else and which already had been passed through the statistical process. The secondary data was
collected through web sites, books and magazines.
 Primary sources- Primary data are those which are fresh and are collected for the first time,
and thus happen to be original in character. The primary data was collected through direct
personal interviews (open ended and close ended questionnaires)

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Tools of Presentation & Analysis:
To analyse the data obtained with the help of questionnaire, following tools were used.

1. Likert scale: These consist of a number of statements which express either a favourable or
Unfavourable attitude towards the given object to which the respondents are asked to
react. The respondent responds to in terms of several degrees of satisfaction or
dissatisfaction.

2. Percentage and Pie Charts: These tools were used for analysis of data

LIMITATIONS OF STUDY

Due to lack of time and resources a countrywide survey was not possible. Hence only Delhi
city has been taken for the study.
 Since a smaller sample was chosen so it may not be a true representative of the
population under study.
  Most of the study was restricted to Internet and published data because of the
non-availability of primary data.
 The information given by the respondents might be biased because some of them might
not be interested to given correct information.
 Some of the respondents of the survey were unwilling to share information.

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 CHAPTER 3

CONCEPTUAL DISCUSSION

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Review of literature
Investment is the sacrifice of certain present value for the uncertain future reward It entails
arriving at numerous decisions such as type, mix, amount, timing, grade etc. Further such
decisions making has not only to be continuous but rational too. Instead of keeping the savings
idle you may like to use savings in order to get return on it in the future, which is known as
“Investment”. There are so many factors that affect the investment behaviour of the customers
like lifestyle, interest, Information etc.
1) Literature suggests that major research in investors' behaviour has been done by behavioural
scientists such as Weber, Shiller and Shefrin. Shiller who strongly advocated that stock market is
governed by the market information which directly affects the behaviour of the investors. Several
studies have brought out the relationship between the demographics such as Gender, Age and
risk tolerance level of individuals. Of this the relationship between Age and risk tolerance level
has attracted much attention.
Wallach and Kogan were perhaps the first to study the relationship between risk tolerance and
age. Cohn, Lewellen et.al found risky asset fraction of the portfolio to be positively correlated
with income and age and negatively correlated with marital status. Morin and Suarez found
evidence of increasing risk aversion with age although the households appear to become less risk
averse as their wealth increases. YOO found that the change in the risky asset holdings were not
uniform. He found individuals to increase their investments in risky assets throughout their
working life time, and decrease their risk exposure once they retire.

Panjali and Kasilingam (2015) in their study state that investment behaviour of investors can be
studied in various ways. Lifestyle is another important factor which influences the investment
behaviour of the people. So now it becomes important for the intermediaries and capital market
operators to know the lifestyle of the investors to design effective instruments and can motivate
them to enhance their penetration in different financial avenues. The lifestyle of an investor can
be determined by studying their activities, interest and opinion of investors. Lifestyle largely
depends upon the income of the person. It gives clear picture of their saving surplus. The
occupation too influences risk taking behaviour.

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Introduction to Investment :

Investment is the employment of funds with the aim of getting return on it. In general terms,
investment means the use of money in the hope of making more money. In finance, investment
means the purchase of a financial product or other item of value with an expectation of
favourable future returns. Investment of hard earned money is a crucial activity of every
human being. Investment is the commitment of funds which have been saved from current
consumption with the hope that some benefits will be received in future. Thus, it is a reward
for waiting for money. Savings of the people are invested in assets depending on their risk and
return demands.

The money you earn is partly spent and the rest saved for meeting future expenses. Instead of
keeping the savings idle you may like to use savings in order to get return on it in the future. This
is called Investment.

Investment is a conscious act of an individual or any entity that involves deployment of money
(cash) in securities or assets issued by any financial institution with a view to obtain the target
returns over a specified period of time.

Why should one invest?

One needs to invest to:

 earn return on your idle resources

 generate a specified sum of money for a specific goal in life
 make a provision for an uncertain future

An understanding of the core concepts and a thorough analysis of the options can help an
investor create a portfolio that maximizes returns while minimizing risk exposure. There are Two
concepts of Investment:

1) Economic Investment: The concept of economic investment means addition to the capital
stock of the society. The capital stock of the society is the goods which are used in the
production of other goods. The term investment implies the formation of new and productive
capital in the form of new construction and producers durable instrument such as plant and

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 machinery. Inventories and human capital are also included in this concept. Thus, an
investment, in economic terms, means an increase in building, equipment, and inventory.

2) Financial Investment: This is an allocation of monetary resources to assets that are expected
to yield some gain or return over a given period of time. It means an exchange of financial
claims such as shares and bonds, real estate, etc. Financial investment involves contrasts written
on pieces of paper such as shares and debentures. People invest their funds in shares, debentures,
fixed deposits, national saving certificates, life insurance policies, provident fund etc. in their
view investment is a commitment of funds to derive future income in the form of interest,
dividends, rent, premiums, pension benefits and the appreciation of the value of their principal
capital. In primitive economies most investments are of the real variety whereas in a modern
economy much investment is of the financial variety.

The economic and financial concepts of investment are related to each other because investment
is a part of the savings of individuals which flow into the capital market either directly or
through institutions. Thus, investment decisions and financial decisions interact with each other.
Financial decisions are primarily concerned with the sources of money where as investment
decisions are traditionally concerned with uses or budgeting of money.

Investment Objectives

a) Short term high priority objectives: Investors have a high priority towards achieving certain
objectives in a short time. For example, a young couple will give high priority to buy a house.
Thus, investors will go for high priority objectives and invest their money accordingly.

b) Long term high priority objectives: Some investors look forward and invest on the basis of
objectives of long term needs. They want to achieve financial independence in long period. For
example, investing for post-retirement period or education of a child etc. investors, usually prefer a
diversified approach while selecting different types of investments.

c) Low priority objectives: These objectives have low priority in investing. These objectives are not
painful. After investing in high priority assets, investors can invest in these low priority assets.
For example, provision for tour, domestic appliances etc.

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d) Money making objectives: Investors put their surplus money in these kinds of investment. Their
objective is to maximize wealth.
Every investor has common objectives with regard to the investment of their capital.
The importance of each objective varies from investor to investor and depends upon the age and
the amount of capital they have. These objectives are broadly defined as follows.
1. Lifestyle– Investors want to ensure that their assets can meet their financial needs over their
lifetimes.
2. Financial security– Investors want to protect their financial needs against financial risks at all
times.
3. Return– Investors want a balance of risk and return that is suitable to their personal risk
preferences.
4. Value for money– Investors want to minimize the costs of managing their assets and their
financial needs.
5. Peace of mind– Investors don’t want to worry about the day to day movements of markets
and their present and future financial security.

Types of Investors

 Institutional Investors:

An institutional investor is an entity which pools money to purchase securities, real
Property, and other investment assets or originate loans. Institutional investors include
banks, insurance companies, pensions, hedge funds, REITs, investment advisors,
endowments, and mutual funds. An institutional investor is a nonbank person or
organization that trades securities in large enough share quantities or dollar amounts that it
qualifies for preferential treatment and lower commissions.

 Arbitrageurs / Speculators:

An arbitrageur is a type of investor who attempts to profit from price inefficiencies in the
market by making simultaneous trades that offset each other to capture risk-free profits. An
arbitrageur would, for example, seek out price discrepancies between stocks listed on more
than one exchange by buying the undervalued shares on one exchange while short selling

29
 the same number of overvalued shares on another exchange, thus capturing risk-free profits as
the prices on the two exchanges converge.

 Hedgers:
An investor who takes steps to reduce the risk of an investment by making an offsetting
investment There are a large number of hedging strategies that a hedger can use. Hedgers
may reduce risk, but in doing so they also reduce their profit potential.

 Day traders/Jobbers:

A day trader executes short and long trades to capitalize on intraday market price action
resulting from temporary supply and demand inefficiencies. A day trader often closes all trades
before the end of the trading day, so not to hold open positions overnight. Day traders'
effectiveness may be limited by the bid-ask spread, trading commissions, as well as expenses
for real-time news feeds and analytics software.
ELEMENTS OF INVESTMENTS

1) Return: Investors buy or sell financial instruments in order to earn return on them. The return
on investment is the reward to the investors. The return includes both current income and capital
gain or losses, which arises by the increase or decrease of the security price.

2) Risk: Risk is the chance of loss due to variability of returns on an investment. In case of
every investment, there is a chance of loss. It may be loss of interest, dividend or principal
amount of investment. However, risk and return are inseparable. Return is a precise statistical
term and it is measurable. But the risk is not precise statistical term. However, the risk can be
quantified. The investment process should be considered in terms of both risk and return.

3) Time: Time is an important factor in investment. It offers several different courses of action.
Time period depends on the attitude of the investor who follows a „buy and hold‟ policy. As time
moves on, analysis believes that conditions may change and investors may revaluate expected
returns and risk for each investment.

4) Liquidity: Liquidity is also important factor to be considered while making an investment.

Liquidity refers to the ability of an investment to be converted into cash as and when required.
The investor wants his money back any time. Therefore, the investment should provide liquidity
to the investor.
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5) Tax Saving: The investors should get the benefit of tax exemption from the investments.
There are certain investments which provide tax exemption to the investor. The tax saving
investments increases the return on investment. Therefore, the investors should also think of
saving income tax and invest money in order to maximize the return on investment.

INVESTMENT ATTRIBUTES

Every investor has certain specific objective to achieve through his long term or short term
investment. Such objectives may be monetary/financial or personal in character.

The Three financial objectives are:-

1. Safety & Security of the fund invested (Principal amount)

2. Profitability (Through interest, dividend and capital appreciation)

3. Liquidity (Convertibility into cash as and when required)

These objectives are universal in character as every investors will like to have a fair balance of these
three financial objectives. An investor will not like to take undue risk about his principal amount
even when the interest rate offered is extremely attractive. These factors are known as investment
attributes. There are personal objectives which are given due consideration by every investor while
selecting suitable avenues for investment. Personal objectives may be like provision for old age
and sickness, provision for house construction, provision for education and marriage of children’s and
finally provision for dependents including wife, parents or physically handicapped member of the
family. Investment Avenue selected should be suitable for achieving both the financial and
personal objectives. Advantages and disadvantages of various investment avenues need to be
considered in the context of such investment objectives.
1) Period of Investment- It is one major consideration while selecting avenue for investment.

a. Short Term (up to one year) – To meet such objectives, investment avenues that carry
minimum or no risk are suitable.

b. Medium Term (1 year to 3 years) – Investment avenues that offers better returns and may carry
slightly more risk can be considered, and lastly
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c. Long Term (3 years and above) – As the time horizon is adequate, investor can look at
investment that offers best returns and are considered more risky.

2) Risk in Investment:- Risk is another factor which needs careful consideration while
selecting the avenue for investment. Risk is a normal feature of every investment as an
investor has to part with his money immediately and has to collect it back with some
benefit in due course. The risk may be more in some investment avenues and less in others.
Risk connected with the investment are, liquidity risk, inflation risk, market risk, business
risk, political risk etc. Thus, the objective of an investor should be to minimize the risk
and to maximize the return out of the investment mad

INVESTMENT ALTERNATIVES

Wide varieties of investment avenues are now available in India. An investor can himself select the
best avenue after studying the merits and demerits of different avenues. Even financial
advertisements, newspaper supplements on financial matters and investment journals offer guidance
to investors in the selection of suitable investment avenues. Investment avenues are the outlets of
funds. A bewildering range of investment alternatives are available, they fall into two broad
categories, viz., financial assets and real assets. Financial assets are paper (or electronic) claim on
some issue such as the government or a corporate body. The important financial assets are equity
shares, corporate debentures, government securities, deposit with banks, post office schemes, mutual
fund shares, insurance policies, and derivative instruments. Real assets are represented by tangible
assets like residential house, commercial property, agricultural farm, gold, precious stones, and art
object. As the economy advances, the relative importance of financial assets tends to increase. Of
course, by and large the two forms of investments are complementary and not competitive. Investors
are free to select any one or more alternative avenues depending upon their needs. All categories of
investors are equally interested in safety, liquidity and reasonable return on the funds invested by
them. In India, investment alternatives are continuously increasing along with new developments in
the financial market. Investment is now possible in corporate securities, public provident fund, mutual
fund etc.

32
INVESTMENT PROCESS

Investment Process:
The investment process involves a series of activities leading to the purchase of securities or
other investment alternatives.

1. Investment policy:
The investor before proceeding into investment formulates the policy for the systematic
functioning. The essential ingredients of the policy are investible funds, objective the
knowledge about the investment alternative and market.
Investible funds: The entire investment procedure revolves around the availability of
investible funds. The fund may be generated through savings or from borrowings. If the funds
are borrowed, the investor has to be extra careful in the selection of investment alternatives.
The return should be higher than the interest he pays.

Objectives: The objectives are framed on the premises of the required rate of return, need
for regularity of income, risk perception and the need for liquidity. The risk takers objective
is to earn high rate of return in the form of capital appreciation, whereas the primary objective
of the risk averse is the safety of the principal.

Knowledge: The knowledge about the investment alternatives and markets plays a key role
in the policy formulation. The investment alternatives range from security to real estate . The
risk and return associated with investment alternatives differ from each other. Investment in
equity is high yielding but has more risk than the fixed income securities. The tax sheltered
schemes offer tax benefits to the investors.
Security analysis :
After formulating the investment policy, the securities to be bought have to be scrutinized
through the market, industry and company analysis.
Market analysis:
The stock market mirrors the general economic scenario. The growth in gross domestic
product and inflation are reflected in the stock prices. The recession in the economy results
in a bear market. The stock prices may be fluctuating in the short run but in the long run

33
they move in trends i.e. either upwards or downwards. The investor can fix his entry and exit
points through technical analysis.

Industry analysis:

The industries that contribute to the output of the major segments of the economy vary in
their growth rates and their overall contribution to economic activity. Some industries grow
faster than the GDP and are expected to continue in their growth.

2. Company analysis:
The purpose of company analysis is to help the investors to make better decisions. The
company’s earnings, profitability, operating efficiency, capital structure and management have
to be screened. These factors have direct bearing on the stock prices and the return of the
investors. Appreciation of the stock value is a function of the performance of the company.
Company with high product market share is able to create wealth to the investors in the form of
capital appreciation.

3. Valuation:
The valuation helps the investor to determine the return and risk expected from an investment
in the common stock. The intrinsic value of the share is measured through the book value of
the share and price earning ratio. Simple discounting models also can be adopted to value the
shares. The stock market analysts have developed many advanced models to value the shares.
The real worth of the share is compared with the market price and then the investment
decisions are made.

Future value:
Future value of the securities could be estimate by using a simple statistical technique like
trend analysis. The analysis of the historical behaviour of the price enables the investor to
predict the future value.

Intrinsic value:
The actual value of a company asset based on an underlying perception of its true value

34
including all aspects of the business, in terms of both tangible and intangible factors. This
value may or may not be the same as the current market value .Value investors use a variety of
analytical techniques in order to estimate the intrinsic value of securities.

Industry diversification: Industries growth and their reaction to government policies differ
from each other. Banking industry shares may provide regular returns but with limited capital
appreciation. The information technology stock yields high return and capital appreciation but
their growth potential is not predictable.

Company diversification:
Securities from different companies are purchased to reduce risk. Technical analysts suggest
the investors to buy securities based on the price movement. Fundamental analysts suggest the
selection of financially sound and investor friendly companies.

Selection: Based on the diversification level, industry and company analysis the securities
have to be selected. Funds are allocated for the selected securities. Selection of securities and
the allocation of funds and seals the construction of portfolio.

5. Evaluation:
The portfolio has to be managed efficiently. The efficient management calls for evaluation of
the portfolio. This process consists of portfolio appraisal and revision.
Appraisal:
The return and risk performance of the security vary from time to time. The variability in
returns of the securities is measured and compared. The developments in the economy,
industry and relevant companies from which the stocks are bought have to be appraised. The
appraisal warns the loss and steps can be taken to avoid such losses.
Revision:
Revision depends on the results of the appraisal. The low yielding securities with high risk are
replaced with high yielding securities with low risk factor. To keep the return at a particular
level necessitates the investor to revise the components of the portfolio periodically.

35
 VARIOUS OPTIONS AVAILABLE FOR INVESTMENT

One may invest in

 Physical assets like real estate, gold/jewellery, commodities etc. or

 Financial assets such as fixed deposits with banks, small saving instruments with post
offices, insurance/ provident/
 Pension fund etc. or securities market related instruments like shares, bonds, debentures
etc.

Investment Option in Banks

1. Fixed Deposit account

In this category are included the deposits with the band for fixed period that is specified at the
time of making the deposit. It is repayable on the expiry of specified period.
2. Saving Bank Account
A saving Bank account is meant for the people of the lower and the middle class who wish
to save a part of their current income to meet their future needs and also intend to earn an
income from their saving. The banks, therefore, impose certain restriction on the saving bank
account and also offer a reasonable at of interest.
3. Recurring Deposit or Cumulative Deposit Accounts
It is variant of the saving bank account. It is intended to indicate the habit of saving on the
regular basis as an inducement if offered in the form of comparatively higher rate of
interest.
4. Current Account
A current account is a running and active account that may be operated upon any number of
time.

36
Investment Option in Small Saving Schemes
Small Saving Schemes are administers through post offices. These are ideal for small
investor looking for fixed return with high safety.

1. National Saving Certificate (NSC)

National Saving Certificate (NSC) is certificate issued by department of post,
Government of India and is available at all post office country. It is a long term safe savings
option for the investor.

2. Kisan Vikas Patra (KVP)

Kisan vikas patra (KVP) Double your money in 8 years and 7 month with the advantage of
pre mature withdrawal. KVP is sold through all head post office and other Authorized post
office throughout India. The rate of return is 8.41%, compounded annually interest rate affect
the decision to buy, or sell (ancash prematurely) relating to KVP.

3. Monthly Income Scheme(MIS)

The post office monthly income scheme (MIS) provides for monthly payment of interest
income to investors. The post office MIS gives a return of 8 percent plus a bonus of 10
percent on maturity.

4. Recurring Deposit (RDA)

A post office Recurring Deposit Account (RDA) is akin to a recurring deposit in a bank,
where you invest a fixed amount on a monthly basis. The deposit has a fixed tenure, and the
Scheme is a powerful tool for regular saving.

5. Public Provident Fund (PPF)

The public provident fund scheme is a statutory scheme of the central government of
India. The scheme is for 15 years. The rate of interest is 8 % compounded annually. The
minimum deposit is Rs-500/- and maximum is Rs-70,000/- in financial years. The amount of

37
 deposit can be varied to suit the convenience of the account holders. The account in which
deposit are not made for any reason in treated as discontinued account and such account
cannot be closed before maturity.

Investment Option in Securities Market

1. Equity Shares
Secondary market refers to the stock exchanges where investors can buy/sell shares that are
listed on them. Equity shares have dominated India’s stock market. As a result of
significant change in the past, particularly computerization, online trading, dematerialization
and depository participation, investors are now dealing with a much more transparent and
efficient secondary markets. Equity shares yield returns in two ways: one, Dividends
declared by the companies usually at the end of the year and two the capital gains on sale of
equity shares. Liquidity of investment in equity shares depends upon the trading volumes of
the share.
An investor needs to be aware of the companies and their performance. Companies‟
performance should be monitored closely in order to track the investment performance.

2. Debt. Instrument
Debt instrument represent contracts where one party in the investor another party is the
issuer. Debt instrument are a way for markets and participant to easily transfer the ownership
of debt obligation from one party to another. Debt obligation transferability increases
liquidity and gives creditors a means to debt obligation from one party to another. When a
debt instrument is used as a medium to facilitate debt trading debt obligation can be moved
from one party to another quickly and efficiently. The debt contract specifies the rate of
interest, time of interest payment.

3. Maturity Fund
Mutual fund is an investment company that pools money from shareholders and invests in a
variety of securities, such as stocks, bonds and money market instruments. In Short, mutual
funds is a common pool of money in to which investor with common investment
38
 objective place their contributions that are to be invested in accordance with the started
investment objective of the scheme the investment manager would invest the money
collected from the investor in to assets that are defined/ permitted by the stated objective of
the scheme. Mutual fund is a suitable investment for the common man as it offers an
opportunity to invest in a diversified, professionally managed basket of securities at a
relatively low cost.

TAX SAVING INVESTMENTS

There are certain schemes introduced for the purpose of tax saving. These schemes provide
income tax benefits to the investors who invest in these schemes. Under Section 80C of the

Income Tax Act, 1961, the following schemes are eligible for tax saving. The Finance Act, 2010
provides tax exemption up to Rs.1,00,000 for the investments in the following schemes:

1. Life Insurance Premium: Life insurance premium paid by a person on his life or on the life of
spouse or on life of any child of that person is entitled for deduction under this section. Maximum
premium of 20% of the policy amount can be allowed for deduction.

2. Public Provident Fund: Investment made by an individual towards the 15 year Public Provident
Fund set up by the government under the Public Provident Fund Scheme, 1968 is qualified for
deduction up to a maximum of Rs . 70,000 in a year.

3. Post Office Savings Deposits: Any sum deposited in a 10 year or 15 year account under the
Post Office Savings Bank Rules 1959 by an individual is entitled for deduction up to a limit of
Rs.1,00,000.

4. National Savings Certificate (NSC): Amount invested by an individual in National Savings

Certificate issued by post office is entitled for deduction.

5. Unit Linked Insurance Plan (ULIP): Investments made by an individual for participating in
the Unit Linked Insurance Plan of Unit Trust of India are entitled for deduction up to an amount
of Rs.1,00,000 in a year.

6. Deposits in National Housing Bank: Any sum invested in home loan account scheme of the
39
National Housing Bank is entitled for deduction up to an overall limit of Rs.60,000 in a year.

7. Repayment of Housing Loan: Payment not exceeding Rs.1,00,000 in respect of loan

instalment or repayment of housing loan taken for the purpose of a residential house is entitled
for deduction. Deduction under section 24(b) : Under this section, Interest on borrowed capital
for the purpose of house purchase or construction is deductible from taxable income up to Rs.
1,50,000 with some conditions to be fulfilled.
8. Fixed Deposit: FD in a bank for more than 5 years maturity period is allowed as deduction up
to Rs.1,00,000.
9. Mutual Fund: Investment up to Rs.1,00,000 in units of a mutual fund referred to in Section
10(23D); popularly known as Equity Linked Savings Scheme (ELSS) and approved by the board
are eligible for deduction under this act.

10. LIC's Pension Plan: The premium paid for LIC's New Jeevan Suraksha policy qualifies for
deduction up to a limit of Rs.1,00,000 in a year.

1) Industry development and history

Indian financial services industry is the backbone of economic growth and development of a nation.
Finance industry enables creation of new business and expansion of existing ones. Ultimately this
facilitates more employment and job creation with the growth of other mainstream industries. The
financial services industry manages money for individuals and corporations. Finance sector mainly
comprises of commercial banks, insurance companies, non-banking financial companies (NBFC), co-
operatives, pension funds, mutual funds and other smaller financial entities.
 The asset management industry in India is among the fastest growing in the world. As of
November 2017, 42 asset management companies were operating in the country
 At the end of March 2018, the assets under management of the mutual fund industry stood at
Rs 21.36 lakh crore (US$ 331.42 billion).
 India registered a record inflow of amount of US$ 51.02 billion in mutual funds in FY 2016-
17. According to the Association of Mutual Funds in India (AMFI) data, this was the highest
investment in mutual fund schemes since the fiscal 1999-2000.
 The number of mutual fund (MF) portfolios has increased to 66.5 million as of December
2017, backed by rising interest in MFs among investor.

40
  Mutual fund (MF) equity portfolios in India reached a 10-year high of 49.3 million, by end of
2017.
 The number of listed companies on NSE and BSE increased from 6,445 in FY10 to 7,501 in
March 2018.
 The market capitalization of all the companies listed on the BSE reached a record Rs 150 lakh
crore (US$2.33 trillion) backed by high gains in the broader market.
 The amount raised by IPOs in India increased from US$ 318 million in FY 2008-09 to US$
10,888 million in FY 2017-18*.
 Initial Public Offers (IPOs) by small and medium enterprises (SMEs) in India received record
funding of Rs 16.79 billion (US$ 259.35 million) in 2017 through 133 issues.

Government incentives for financial services industry

SEBI has allowed exchanges in India to operate in equity and commodity segments simultaneously,
starting from October 2018. The banking regulator has recently allowed inclusion of payments banks for
better facility of fund transfer.
The Government and RBI have taken various measures to facilitate easy access to finance for Micro,
Small and Medium Enterprises. They have launched Credit Guarantee Fund Scheme for Micro
and Small Enterprises. Government has also set up Micro Units Development and Refinance
Agency (MUDRA) for small scale industries.

Road ahead for Indian financial services industry

India is today one of the most vibrant global economies, on the back of robust banking and insurance
sectors. The Association of Mutual Funds in India (AMFI) is targeting nearly fivefold growth in
assets under management (AUM) to Rs 95 lakh crore (US$ 1.47 trillion) and a more than three times
growth in investor accounts to 130 million by 2025.
India’s mobile wallet industry is estimated to grow at a Compound Annual Growth Rate (CAGR) of
150 per cent to reach US$ 4.4 billion by 2022 while mobile wallet transactions to touch Rs 32 trillion
(USD $ 492.6 billion) by 2022.

41
Indian financial services industry outlook for 2018
It is projected that national savings in India will reach US$ 1,272 billion by 2019. Over 95 per
cent of household savings in India goes to bank deposits and only 5 per cent in other financial
asset classes. But landscape is changing rapidly at present.
The relaxation of foreign investment rules has received a positive response from the insurance sector.
Many foreign companies announcing plans to increase their stakes in joint ventures with Indian
companies. Over the coming quarters there could be a series of joint venture deals between global
insurance giants and local players. We are positive on brokerage industry, few holding companies,
low cost housing finance industry and insurance industry for 2018 and beyond. NBFC Industry is one
of our favorate industry at present where as we foresee challenges in Indian baking sector.

42
 CHAPTER

DATA ANALYSIS AND INTERPRETATION

43
 1. Occupation

Frequency Percent Valid Cumulative

Percent Percent

Government employee 26 37.1 37.1 37.1

Private employee 16 22.9 22.9 60.0

Businessmen 19 27.1 27.1 87.1

Retired 9 12.9 12.9 100.0

Total 70 100.0 100.0

Occupation

Govt. Employee
Private Employee
Businessmen
Retired

ANALYSIS:
For my analysis purpose I have 80% respondent out of which 70 respondents are
interested in investment in shares. Out of those 70, most interested investors are government
employees i.e. 37.1% and least interested in Shares are retired people i.e. 12.9% and rest 10
respondent are interested to invest in other securities because they think that they earn more
profit then Equity shares.

44
 2. Age Group

Frequency Percent Valid Cumulative

Percent Percent

20 – 40 31 44.3 44.3 44.3

40 – 60 22 31.4 31.4 75.7

Above 60 17 24.3 24.3 100.0

Total 70 100.0 100.0

Age Group

20 - 40
40 - 60
Above 60

ANALYSIS:
From the above graph, it is observed that 44.3% of the respondents are in the age group
of 20 – 40 years, 31.4% of the respondents are in the age group 40 – 60 years and 24.3%
of the respondents are above 60 years. Majority of the respondents are between 40 – 60
years.

45
 3. Education
Frequency Percent Valid Cumulative
Percent Percent

Illiterate(uneducated) 7 10.0 10.0 10.0

Metric/senior secondary 12 17.1 17.1 27.1

Graduation 31 44.2 44.2 71.3

Post-Graduation 17 24.2 24.2 95.5

Doctorate 3 4.5 4.5 100.0

Total 70 100.0 100.0

ANALYSIS;
From the above graph, it is observed that 44.2% of the respondents are Graduate, 24.2%
of the respondents are Post graduate, 10% of the respondents are illiterates and 3% of the
respondents are Doctorate. Majority of the respondents are Graduate.

46
 4. Annual household income
Frequency Percent Valid Cumulative
Percent Percent

Less than 1.5 lakh 13 18.6 18.6 18.6

1.5 to 3 lakh 20 28.6 28.6 47.1

3 to 5 lakh 23 32.9 32.9 80.0

Above 5 lakh 14 20.0 20.0 100.0

Total 70 100.0 100.0

ANALYSIS:
From the above graph, it is observed that 18.6% respondents fall under income group of
less than 1.5 lakh 28.6% of our total respondents fall under 1.5-3 lakh income group,
32.9% (maximum) respondents fall under income group of between 3 to 5 lakh and 20%
respondents fall under income group above 5 lakh.

47
 5. You are interested in investment

Frequency Percent Valid Cumulative

Percent Percent

Yes 69 98.6 98.6 98.6

No 1 1.4 1.4 100.0

Total 70 100.0 100.0

ANALYSIS:
This graph shows that, it is observed that 98.6% of the respondents invested in shares and
1.4 of total respondents didn’t invest in any share.

48
 6. Where do you make investment?
Frequency Percent Valid Cumulative
Percent Percent

Fixed deposit 5 7.1 7.1 7.1

Property 2 2.8 2.8 9.9

Shares 51 72.9 72.9 82.8

Insurance 4 5.7 5.7 88.5

Mutual Funds 8 11.5 11.5 100.0

Total 70 100.0 100.0

ANALYSIS:
In this graph, out of 70 respondents, it is observed that 72.9% respondents prefer to invest
into shares, 7.1% respondents prefer to invest into fixed deposit, 11.5%respondents prefer
to invest in mutual funds and 8.5% respondents prefer to invest into property & insurance

49
 7. Which in more profitable?

Frequency Percent Valid Cumulative

Percent Percent

Fixed deposit 7 10.0 10.0 10.0

Mutual funds 11 15.7 15.7 25.7

Shares 48 68.6 68.6 94.3

Commodity 4 5.7 5.7 100.0

Total 70 100.0 100.0

ANALYSIS:
From the above table, out of 70 respondents, it is observed that 68.6% of respondents are
saying Shares, 15.7% of respondents are saying Mutual funds, 7% of respondents are
saying fixed deposit & other 4% are saying commodity in more profitable.

50
 8. What is your objective/motive behind investment?
Frequency Percent Valid Cumulative
Percent Percent

Long term profit 21 30.0 30.0 30.0

Regular profit 14 20.0 20.0 50.0

Secure future 22 31.4 31.4 81.4

Tax benefits 13 18.6 18.6 100.0

Total 70 100.0 100.0

ANALYSIS:
In the above graph, it is observed that 30% of the respondents are investing for the
purpose of long term profits, 20% invest for the purpose of generating regular income,
31.4% of maximum respondents are those who invest to secure their future & 18.6% of
the respondents who are least in number invest for tax benefit.

51
 9. How do you prioritize the reason for investment?

Saving for future 2.557143

Tax saving 3.142857

Return 2.942857

Future outlook 3.742857

Brand value 4.428571

Risk factor 4.185714

ANALYSIS:
In above figure shows that, out of 70 respondents, after finding the mean saving for
future has got 2.557143 mean and tax incentives has got 3.142857mean, return has got
2.942857 mean, future outlook has got 3.742857 mean, brand value has got 4.428571
mean (maximum) & risk factor has got 4.185714 mean.

52
 10. Is investment in equity shares safe?

Frequency Percent Valid Cumulative

Percent Percent

Yes 67 95.7 95.7 95.7

No 3 4.3 4.3 100.0

Total 70 100.0 100.0

ANALYSIS:
In this graph, it is observed that out of 70 respondents who are interested in investment
into shares, 95.7% respondents are saying that equity shares units are safe and 4.3%
respondents are saying equity shares are not safe.

53
 11. What is your expected return?

Frequency Percent Valid Cumulative

Percent Percent

Less than 10% 13 18.6 18.6 18.6

10% to 30% 38 54.3 54.3 72.9

Above 30% 19 27.1 27.1 100.0

Total 70 100.0 100.0

ANALYSIS:
In this graph, 18.6% of respondents get less than 10% return, 27.1% of the respondents
expect return above 30% and 54.3% respondents get return between 10-30%. So majority
of respondents get 10-30% return.

54
 12. How much risk you can take?

Frequency Percent Valid Cumulative

Percent Percent

Minimum risk 29 41.4 41.4 41.4

Moderate risk 30 42.9 42.9 84.3

High risk 11 15.7 15.7 100.0

Total 70 100.0 100.0

ANALYSIS:
From the above graph, out of 70 respondents, it is observed that 41.4% respondents can
bear minimum risk, 42.9% majority of respondents can bear moderate risk and 15.7%
respondents can bear high risk.

55
 13. Which information do you rely on?

Frequency Percent Valid Cumulative

Percent Percent

Prospectus/self-analysis 22 31.4 31.4 31.4

Newspaper 12 17.1 17.1 48.6

Investment advisor 15 21.4 21.4 70.0

TV 11 15.7 15.7 85.7

Friends 10 14.3 14.3 100.0

Total 70 100.0 100.0

Information

Prospectus/self Analysis
Newspaper
Investment advisor
TV
Friends

ANALYSIS:
In the graph, out of 70 respondents, it is observed that 31.4% majority of respondents collect
information through prospectus/self-analysis, 17.1% respondents collect information through
newspaper, 21.4% respondents take information through investment advisor, 15.7% respondents
take information through TV and 14.3% least of respondents collect information through
Friends.

56
 14. What is the most important criterion for you for selecting a particular equity
shares?
Frequency Percent Valid Cumulative
Percent Percent

Past performance 28 40.0 40.0 40.0

Service 20 28.6 28.6 68.6

Promoters Background 11 15.7 15.7 84.3

Any other 11 15.7 15.7 100.0

Total 70 100.0 100.0

Most Important Criterion

Past Performance
Service
Promoters Backgraound
Any other

ANALYSIS:
In the above graph, 40% of the respondents purchase or invest in Shares for past
performance and 15.7% respondents purchase or invest in shares for promoter‟s
background and any other and 28.6% purchase or invest in shares for sevice.

57
 15. What is your level of satisfaction from your equity shares?

Frequency Percent Valid Cumulative

Percent Percent

Satisfied 38 54.3 54.3 54.3

Dissatisfied 3 4.3 4.3 58.6

Neither Satisfied nor 29 41.4 41.4 100.0

Dissatisfied

Total 70 100.0 100.0

ANALYSIS:
From above graph, it is observed that 54.3% majority of respondents are satisfied to
purchase a mutual fund and 4.3% of the respondents are not satisfied to purchase a share.

58
 16. What deficiencies do you find in your equity shares?

Frequency Percent Valid Cumulative

Percent Percent

Track record 16 22.9 22.9 22.9

Transparency 19 27.1 27.1 50.0

Service Quality 18 25.7 25.7 75.7

Any other 17 24.3 24.3 100.0

Total 70 100.0 100.0

ANALYSIS:
From the graph out of 70 respondents, 27.1% respondents are saying transparency is
the major deficiency in shares and 22.9% respondents are saying track record of
other deficiencies in equity share, 24.3% respondents are saying that any other
reason are deficiencies in shares & 25.7 of the respondents saying service quality is
the deficiencies of shares.

59
 17. Is the commission charged by the trading site reasonable?

Frequency Percent Valid Cumulative

Percent Percent

Yes 44 62.9 62.9 62.9

No 26 37.1 37.1 100.0

Total 70 100.0 100.0

ANALYSIS:
From this graph, it is observed that 62.9% of respondents are saying
commission charged by the trading site and 37.1% of the respondents are
saying there is no commission charged by trading site.

60
 CHAPTER 5

FINDINGS AND CONCLUSIONS

61
 FINDINGS

 Retired respondents are least interested into invest in Equity shares because they
want regular income.
 Majority of 20 – 40 years respondents are interested into invest in equity shares
because they want capital appreciation.
 12.5% of the respondents don’t invest into equity shares because they earn more
profit through FD, mutual funds, property & insurance.
 Majority of respondents invest into shares for secure future and tax saving
 People rely more on information supplied by investment adviser & than by self-
analysis.
 37.1% respondents are satisfied by trading site because there is no extra charge by
this site.
 54.3% people are satisfied with equity shares, 41.4% people are neither satisfied
nor dissatisfied.
 The main problem that the people find with shares in lack of Knowledge.
 28.6% people think that FD is more profitable than Shares.
 According to Survey 97.1% people think that the future of shares is bright.
 In India most of the people having lack of awareness about shares.
 12.5% people were not considering investing in shares because they have
had bad experience or they simply don’t have money to invest.

62
 CONCLUSION

Indian Stock Markets is one of the oldest in Asia. Its history dates back to nearly 200 years
ago. The earliest records of security dealings in India are major and obscure. The East
India Company was the dominant institution in those days and business in its loan securities
used to be transacted towards the close of the eighteenth century.
The nature of investment differs from individual to individual and is unique to each one
because it depends on various parameters like future financial goals, the present & the
future income model, capacity to bear the risk, the present requirements and lot more. As an
investor progresses on his/her life stage and as his/her financial goals change, so does the
unique investor profile. Maximum investors are aware of all the investment options.
Investors do not invest in a single avenue. They prefer different avenues and maximum
investors prefer to invest in shares & mutual funds. The most important factor is
Return which influenced the decision regarding investment.

Through the research I found that shares are one of the important financial instruments
for investment. People have shifted from traditional sources of investment to new
financial instruments like Mutual funds, Equity shares and Commodities etc.
The main reason of investment in Shares is return, diversification & risk management but
people are not well aware of these benefits. So if these people are provided required
awareness and knowledge about share can act as a most preferred investment option.

63
 CHAPTER 6

SUGGESTIONS

64
 SUGGESTIONS

Following are the recommendations of the study:

• The various investment tools which were mostly preferred by the investors were
shares,
mutual funds etc. So there should be various other means to create awareness
regarding the potential of other instruments and the tools which can be more beneficial
to the investors.

• The investors consider various factors while making investment like risk, return,
liquidity etc. There should be rational thinking so that the investor is able to know
that at what point of time they need capital appreciation instead of reducing the risk
and when they need return instead of liquidity.

• The preferred time span of investment by the investors depends upon the need of
the investor that whether they wants to have early and high returns or wants to
have stable returns, most probably the long time span is suitable because the returns
are high and safety is also there.

• The satisfaction levels of various investors are different due to different investment
alternatives
they opt for. If they will be aware of each type of alternatives and the worth of the
alternatives then investing as per that there satisfaction level will also be high.

• Investors should have the complete knowledge of stock market.

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 CHAPTER 7.

BIBLIOGRAPHY AND

ANNEXURE

66
 QUESTIONNAIRE

STALLION CAPITAL MANAGEMENT

Personal Details

Name: ____________________________________________________ Designation: _________________________________________

Organization: ________________________________________

Age Group:
 Below 20  Between 20-30  Between 30-40  Above 40
Qualification:
 Under Graduate  Graduate  Post Graduate
 Other: ______________________________________________

Occupation (what category do you come under):

 Salaried  Business  Housewife
 Student  Professional  Retired
 Other: ______________________________________________

Annual income:
 Below Rs. 2,00,000  Rs. 2,00,000- Rs 4,00,000
 Rs. 4,00,000-Rs 6,00,000  Above Rs. 6,00,000
Do you have a financial advisor?
 Yes  No

What best describes your investment experience?

 Beginning
 Moderate
 Knowledgeable
 Experienced

1. What do you think are the best options for investing your money? (choose from above list)
1.___________________________________ 2.___________________________________ 3.______________________________________

4.___________________________________ 5.___________________________________ 6.______________________________________

2. Reasons for selecting these options :

1_________________________________________________________________________________

2_________________________________________________________________________________

3. In the past, you have invested mostly in?

_____________________________________________________________________________________________________________

4. In which sector do you prefer to invest your money?

 Private Sector  Government Sector  Public Sector  Foreign Sector

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5. What are the important factors guiding your investment decisions? (Return, safety of
principal, diversification, progressive values, etc.)?

_________________________________________________________________________________________________________________
6. What are your savings objectives?
 Children’s Education  Retirement  Home Purchase  Children’s Marriage
 Healthcare  others_______________________________________________________________

7. What is your investment objective?

 Income and Capital Preservation  Long-term Growth
 Growth and Income  short-term Growth
 Others_________________________________________________________________________________________________

8. What is the purpose behind investment?

 Wealth Creation  Tax Saving  Earn Returns  Future Expenses
 Others________________________________________________________________________________________________

9. Have you set aside funds specifically for the education and marriage of your children?
If yes, please give amounts and how the funds are held
Education: Amount Rs.__________________________________ invested in ________________________________
Marriage: Amount Rs.__________________________________ invested in ________________________________

10. Do you have a formal budget for family expenditure?

 Yes  No
11. Do you have a savings and investment target amount you aim for each year?
 Yes if yes: Amount_______________________________________________________________________
 No
12. At which rate do you want your investment to grow?
 Steadily  At an Average Rate  Fast

13. Which factor do you consider before investing?

 Safety of Principal  Low Risk  High Returns  Maturity Period

14. Do you invest your money in share market? (through a DEMAT A/C)
 Yes  No
If yes: Imagine that stock market drops after you invest in it then what will you do?
 Withdraw your money  Wait to increase  Invest more in it

15. How often do you monitor your investment?

 Daily  Monthly  Occasionally

16. What percentage of your income do you invest?

 0-15%  15-30%  30-50%

17. What is the time period you prefer to invest?

 Short-term (0-1yrs)  Medium-term (1-5yrs)  Long-term (>5yrs)

18. Can you take the risk of losing your principal investment amount?
 Yes  No If yes: What percentage ________________________

19. What is your source of investment advice?

 Newspapers  News Channels  Family or Friends
 Books  Internet  Magazines
 Advisors  Certified Market Professional/Financial Planners

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BIBLIOGRAPHY

Books & Research Papers:

 Avadhani. V.A. “Investment Management”, 3rd Edition, Mumbai: Himalaya

Publish
House, 1999.
 Bhalla, B.K. “Security, Analysis and portfolio Management”, 1st Edition
New Delhi: S.chand & CO.Ltd., 2002.
 Desai Vasant, ”Indian Financial System” Himalaya Publishing House, New
Delhi. Fisher Donald E. and Jordan Ronald j., “Security Analysis and Portfolio
Management” Prentice Hall of india, Pvt. Ltd. Sixth Edition, New Delhi.
 Desigan Gnana, Kalaselvi S and Anuya L (2006), “Women Consumers
Perception Towards Investment: An empirical Study, “Indian Journal of
Marketing, April.
 International Journal of Multidisciplinary Research, Vol.
1 Issue8, Journal of Law and Economics, Vol. 23
 Gorden E. and Natrajan K. (2010), “Financial Markets and services”, Vikas
publishing House pvt. Ltd., New Delhi.
 Pandian, Punivathy (2013) “financial service and management”, vikas
publishing house pvt ltd, New Delhi.
 Business Standard
 Fact sheet and statements of various funds houses

Web Sites:

 www.the-finapolis.com
 www.stallioncap.com
 www.mutualfundsindia.com
 www.moneycontrol.com

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 www.yahoofinance.com
 www.threeconomictimes.com
 www.rediffmoney.com
 www.bseindia.com
 www.nseindia.com
 www.investopedia.com
 www.amfiindia.com
 www.altavista.com
 www.sebi.gov

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