A PROJECT REPORT

ON
“A DETAILED STUDY ON CUSTOMER INESTMENT BEHAVIOUR IN
STALLION CAPITAL MANAGEMENT”

Project Report Submitted in Partial

fulfillment of the requirements for the award of Degree of

PGDM (PGDM) FINANCE

Submitted by
NEHA NANDA
21A2017040

Under the guidance of

SANDIP PRASAD KASERA

INSTITUTE OF MANAGEMENT & TECHNOLOGY

CENTRE DISTANCE LEARNING GHAZIABAD (U.P.), 2020

APRIL, 2022

1
2
3
 DECLARATION BY THE STUDENT

I NEHA NANDA bearing Reg. No. 21A2017040 hereby declare that the Project entitled “STUDY
ON INVESTOR’S BEHAVIOUR ON VARIOUS FINANCIAL OPPORTUNITIES FOR
INESTMENT IN STALLION CAPITAL MANAGEMENT” has been prepared by me towards
the partial fulfillment of requirement of PGDM (Finance) Degree under the guidance of SANDIP
PRASAD KASERA

I also declare that this project report is my original work and has not been previously submitted for
the award of any Degree, Diploma, Fellowship, or other similar titles.

Place: New Delhi

Date: 14th APRIL 2022

NEHA NANDA
21A2017040

4
 ACKNOWLEDGEMENT

Many persons have contributed to make this project report on “STUDY ON INVESTOR’S
BEHAVIOUR ON VARIOUS FINANCIAL OPPORTUNITIES FOR INESTMENT IN
STALLION CAPITAL MANAGEMENT” a reality. I would especially like to express my
appreciation to SANDIP PRASAD KASERA 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!

NEHA NANDA
20A1016747

5
 CONTENTS

Chapter Title Page No

1 Introduction 08-24

Financial Planning 10

Consumer Behaviour 11

Introduction to Investment 13

2 Company Profile 25-34

Introduction 26

Vision and Mission 27

Products and services 27

Key Competitors 30

SWOT Analysis 31

Porter’s Five forces Model 32

3 Conceptual Discussion 35-40

Review of literature 36

Industrial Background 39

4 Need, Scope and Objective of the study 41-42

5 Research Methodology 43-48

Statement of the problem 44

Objectives and scope of the study 44

Managerial usefulness of the study 45

Type of research and research design 45

Data collection methods 46

Limitation of study 47

5 Data Analysis, Interpretations and Findings 49-67

6 Suggestions and Recommendations 68-71
7 Conclusions 72-73
8 Bibliography 74-81

6
 Annexure

PREFACE

There is a vast difference between theory and practical applicability of management concepts,
principles and theories in any industry. This practical training program 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 PGDM program and their applicability in an industry.
I am very fortunate to have an opportunity to undergo my project in on “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.

7
 EXECUTIVE SUMMARY

The purpose of this survey is to identify changes and trends in the investment behaviour of insurers
in Stallion Capital Management. The purpose of the survey is not to identify issues with individual
groups or countries but rather, to focus on the developments of investment behaviour across the
whole sample. Furthermore, the analysis is based on end of year data .Investment flow data which
could possibly reveal additional insights was not used.

This research study is all about the feedback given by respondent on various product and services of
Stallion Capital Management. During research there were some criteria of collecting the data from
respondents such as I had to collect the data only from target respondents of target segments. I could
not do survey out of sample size. To collect the data I had used questioner and observations
methods.
This study has given me a lot of practical knowledge about Investments and Investor’s behaviour
towards various products and services, and I have learnt a lot of things from respondents.
This project gives us a detailed idea of consumer investment behavior.

By looking at the starting of the project you will find-

 Why should one invest?
 Investment objectives.
 Types of investors.
 Investment process
 Various long-term and short term financial options available for investment.
 To study about investor behavior.

8
 CHAPTER 1

INTRODUCTION

9
INTRODUCTION
In today’s scenario there has been a major change i.e. economic prosperity all over. The entire world
is talking about the robust growth rates in this part of the world. Higher income levels and booming
stock markets have led to more and more numbers of high net worth investors (HNIs). This means
the availability of huge investible surplus. The investors with higher risk appetite want to
experiment and try new and exotic products in the name of diversification. This has resulted in
emergence of new options within the same or fresh asset classes. There are more products available
within each asset class be it Equity, Mutual Fund, Gold, Real Estate.
The common perception of investors is to buy when the market supports in uptrend and not to invest
in the falling time. They wait for the stabilization in the market; so in this research, we would like to
draw a clear picture on the trends of traders and investors. Markets have personalities because
investors have emotions. Markets are ultimately driven by people and stock prices are what
individuals make them out to be. People have a tendency to see their own actions and decisions as
totally rational, when the truth is they may not be.
Key points on investor behaviors:
 Investors are often impatient to sell a good stock.
 Investors often make a distinction between money easily made from investments, savings or
tax refunds and hard-earned money – found money is more readily spent or wasted.
 People tend to think in extremes – the highly probable news is considered certain, while the
improbable is considered impossible.
 Investors become obsessed with prices and trend-watching, rather than solid information.

The main objective of the study is to find out the need of the current and future investors and to
study on investors behavior. The purpose of the analysis is to determine the investment behavior of
investors and investment preferences for the same. Investor’s perception will provide a way to
accurately measure how the investors think about the products and services provided by the
company.

10
The objective of the study is briefly discussed below:
 To understand in depth about different investment avenues available in market.
 To understand the pattern of the investors at the time of investing.
 To find out the factors that investors consider before investment.

This study will help in gaining a better understanding of what an investors look for in an investment
option. The study could also be used by the financial sector in designing better financial instrument
customized to suit the need of the investors.

FINANCIAL PLANNING –

Financial Planning is the process of meeting life goals through the proper management of finances.
Financial planning is a process that a person goes through to find out where they are now
(financially), determine where they want to be in the future, and what they are going to do to get
there. Financial Planning provides direction and meaning to persons financial decisions. It allows
understanding of how each financial decision a person makes affects other areas of their finances.
For example, buying a particular investment product might help to pay off mortgage faster or it
might delay the retirement significantly. By viewing each financial decision as part of the whole,
one can consider its short and long term effects on their life goals. Person can also adapt more easily
to life changes and feel more secure that their goals are on track.
In simple Financial Planning is what a person does with their money. Individuals have been
practicing financial planning for centuries. Every individual who received money had to make a
decision about the best way to use it. Typically, the decision was either spends it now or save it to
spend later. Everyone have to make the same decision every time they receive money. Does it need
should be spend now or to save it to spend it later?
Today in India financial planning means only investing money in the tax saving instruments. Thanks
to the plethora of tax exemptions and incentives available under various sections and subsections of
the Income Tax Act.

11
This has led to a situation where people invest money without really understanding the logic or the
rationale behind the investments made. Further the guiding force in investment seems to be the
‘rebate’ they receive from the individual agents and advisors. The more the rebate an agent gives,
the more smug person are in the belief that they have made an intelligent decision of choosing the
right agent who has offered them more rebate. In the process what is not being realized is the fact
that the financial future is getting compromised.

CONSUMER BEHAVIOUR

As per the Consumer Behavior Matrix developed by Antony Beckett in his paper Strategic &
Marketing Implications of Consumer Behavior, there are two factors which effect consumer
behavior- Uncertainty & Involvement.
Uncertainty is defined as the person’s perception of risk, which in turn is dependent upon the
complexity of the product and outcome of that product in the form of returns. On the other hand,
involvement is the interest a consumer displays towards the financial product. Involvement is again
dependent upon the perception that a particular financial product is able to satisfy the need of the
customer.
Traditionally speaking, equity products are uncertain in nature with no fixed rate of return. The
understanding of these equity products is also quite low. Most of the people still look out for the ‘hot
tips’ from their broker friends to make some easy money. It is difficult for a layman to understand
the complexities of the equity markets. It is not easy for him to read and understand the various
financial reports and analysis available in the media. Thus equity as a long-term investment asset
still has to gain acceptance in India. Therefore, with high uncertainty and low involvement, most of
the customers are in the first quadrant of ‘No Purchase’ in the CB Matrix.
The challenge for the Financial Institutions is either to decrease the uncertainty associated with
equity as an investment instrument or to increase the involvement of the customer so that the
customers can move to the profitable quadrants of CB Matrix. The uncertainty can be reduced by
making the working of equity markets as transparent as possible, making tough laws and making
sure that the guilty would be bring to book as soon as possible.

12
The complaint redressal system has to be very tough. The internal systems of the Financial
Institutions need to be strong enough so that the practice of duping the gullible customers or miss-
selling can be curbed in the very beginning. The various watchdogs like RBI, SEBI, AMFI & IRDA
are working towards this endeavor but still there is a long way to go before the layman would feel
confident to invest in the equity market. It is probably better if we can have one strong autonomous
body which can look after the grievances of the customers in the financial sector.

The involvement of the customer could be increased by providing the adequate platforms to educate
them. Basically, to tell them the long term benefits of investments in equities, to consider it as an
investment class through which their long term needs can be met. The customers need to consider
the post-tax and post-inflation returns. Many of the financial institutions are quite active in
providing the platforms to their customers where their queries can be addressed. But their target is
still urban customers or High Net worth Individuals (HNIs). They still have not directed their efforts
to the rural areas where there is an actual need to educate the consumers.

13
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 favorable
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:

14
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
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.

15
 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.

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.

16
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 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.

17
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.

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.

18
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 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

19
 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 issuer 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.

20
 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.

21
 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 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.

22
INVESTMENT OPTIONS IN 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 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

23
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
National Housing Bank is entitled for deduction up to an overall limit of Rs.60,000 in a year.

24
7. Repayment of Housing Loan: Payment not exceeding Rs.1,00,000 in respect of loan installment
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.

25
 CHAPTER 2

COMPANY PROFILE

26
 STALLION CAPITAL MANAGEMENT

Stallion Capital is a wealth advisory firm, which 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. Our clients want to take control of their financial future and we
help them achieve this goal. By leveraging our expertise to create and implement a strategic
financial roadmap we can assist them to protect, grow and manage their wealth.

Stallion was established in 2013, on the principles of delivering high returns to its clients through the
network of government sector banks like PNB, Etc. Though client base is spread across, BFSI Sector
& Telecom. Since the company have a large client base in Banking Sector consisting more of Public
Sector Banks. Few of the prominent Banks are Punjab National Bank, Bank of Karnataka, Bank of
Baroda, Andhra Bank, etc. Stallion capital Management is able to facilitate various training and
development programs / internships in India and abroad with top B-school and has trained almost
52000 and above interns till date. Company is having asset under management of 80cr. The
operations of the company are spread beyond the national boundaries of India.

Mission Statement

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

27
 Vision Statement

“To be most admired wealth management firm with best components”

Organizational Values

Products and services offered by the Company

 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.

 Proprietary Financial Planning:

We 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:

1. Negotiate on Property valuation / deal on behalf of clients and get better value of money.
2. To make appropriate proposal favouring our clients. 3. Projects offering assured return on
investment.
4. Cash flow analysis & financial Modeling.
28
5. Legal documentation of properties in a methodical manner.

 Portfolio Management:
A portfolio Management refers to the science of analyzing 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.

 Tax and retirement 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.
The goal of retirement planning is to achieve financial independence. So, we are here to help you
with the best advice regarding retirement savings.

 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.

 Business loan assistance:

We deploy technology and apply innovation to create unique and compelling propositions that help
you do what you always with the Business Loans from Bank, Financial Institutions & FDIs. We help
in making and designing appropriate project reports and presentations. Most of these features are
industry firsts and come only with our portfolio offerings.

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.
29
Clients profile:

Key Competitors:

30
31
 SWOT ANALYSIS OF STALLION CAPITAL MANAGEMENT

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

Weaknesses
 Low key I.T. infrastructures as compared to big
brands
 Low marketing and brand presence
 Lack of track record
 Fewer formal training programs

Opportunity
 Growing rural markets
 Earning urban youth looking for investments
 Could use their customer relationships for increasing
database
 Cross selling through financial services such as banking

Threats
 Competition from large
companies
 Increasing no. of advisory firms

32
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.

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.

33
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.

34
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:
 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 competitor’s products and services.

 A mature industry with very little growth.

 Companies can only grow by stealing customers away from competitors

35
 CHAPTER 3

LITERATURE REVIEW

36
LITERATURE REVIEW

Various studies have been done to know Investors perception regarding various financial
opportunities available in market for investment. The different studies tell the perception of
investors i.e. where they want to invest and what they see at the time of investment.
Large costs associated with evaluating market conditions. Even Individual savers may not have the
ability to collect process and produce information on possible investments. High information cost
may prevent capital to flow to its highest value use. So, Financial intermediaries undertake the
costly process of researching investment possibilities for others. Savers do not like risk; but high-
return projects are riskier; Financial systems that ease risk diversification induce a portfolio shift
towards higher return project.
- Banks, mutual funds, securities markets provide vehicles for trading, pooling and diversifying risk
- Risk diversification → savings rate→ resource allocation→ economic growth
The various studies done by various researchers which tells about the tendency which is followed by
investors at the time of investment are as follows:
- Gurley and shaw(1955)
- Greenwood and Jovanovic(1990)
- Saint- Paul(1992)
- Patrick(1966)

Greenwood and Jovanovic(1990):

This study points out the effective information processing (entrepreneurs / projects) induces higher
growth. It Captures the link between risk-sharing, capital accumulation and growth that how more
risk increases capital accumulation and growth. It points out effective information processing and
Captures the dynamic interaction between finance and growth.
Growth → more individuals can afford to join intermediaries →improves efficiency of
intermediaries.

37
Acemoglu and Zilibotti (1997): This study points out to Captures the interaction between risk-
diversification, capital accumulation and growth, it tells risk diversification like to invest in different
instruments accumulate growth in capital. Item phasizes endogenous risk generation in the growth
process. It also points out financial systems allow agents to hold a diversified portfolio of risk like to
invest in various instruments. According to that
- More investments in high-return projects;
- Higher growth
Allen and Gale(1997):
Long-lived intermediaries can facilitate intergenerational risk sharing: invest with a long-run
perspective; according to this study which instruments offer returns that are relatively low in boom
times and high in lack times
Diamond and Dybvig (1983):
According to this study, the investors or savers choose between an illiquid, high-return project and a
liquid, low-return project. A fraction of savers receive shocks, access their savings before illiquid
project produces. Prohibitive information (verification) cost creates incentives for financial markets
to emerge.

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 behavior of the customers like lifestyle, interest, Information
etc.
1) Literature suggests that major research in investors' behavior has been done by behavioral
scientists such as Weber, Shiller and Shefrin. Shiller who strongly advocated that stock
market is governed by the market information which directly affects the behavior 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.

38
 2) 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 behavior of investors can be
studied in various ways. Lifestyle is an another important factor which influences the investment
behavior 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 behavior.

39
INDUSTRY OVERVIEW
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.
 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.
 The total amount of initial public offerings increased to Rs 84,357 crore (US$ 13,089
million) by the end of FY18.

40
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.

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
favorite industry at present where as we foresee challenges in Indian baking sector.

41
 CHAPTER 4

NEED, SCOPE AND OBJECTIVE OF THE STUDY

OBJECTIVES

42
The objectives of the study are
 To study the various financial opportunities available for investment.
 To study about the investors perception regarding various investment opportunities available in
the market
 To analyze the investment patterns of the investment.
A study on investor’s behaviour on various financial opportunities for investment in Stallion Capital
Management

NEED OF THE STUDY

The need of the study was to fill the gap that was identified in the previous researches. The
researchers conducted earlier lay emphasis on the working of investment behaviour in stallion
capital management. Considering the ample importance of this aspect, the present study was
conducted to study the behaviour of investors and determine their awareness level regarding various
investment avenues available in Stallion Capital Management.
This analysis on Individual Investors‟ Behaviour is an attempt to know the profile of the investor
and also know the characteristics of the investors so as to know their preference with respect to their
investments. The study also tries to unravel the influence of demographic factors like age on risk
tolerance level of the 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.

43
 CHAPTER 5

RESEARCH METHODOLOGY

44
STATEMENT OF PROBLEM

The comprehensive statement of problem can be stated as “Consumer investment behaviour in

Stallion Capital Management. This analysis was carried out to give more knowledge and broader
view to the investor’s investment behaviour on financial opportunities in Stallion Capital. As the
consumers 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 to guide the investors according to their
preference If at all the consumer decide to invest, they take a risk of losing their hard earned money.

OBJECTIVES
The objectives of the study are
 To study the various financial opportunities available for investment.
 To study about the investors perception regarding various investment opportunities available
in the market
 To analyze the investment patterns of the investment.
A study on investor’s behaviour on various financial opportunities for investment in Stallion Capital
Management

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.

45
MANAGERIAL USEFULLNESS OF THE STUDY

1) They define the strategic focus and direction of the business. The capital expenditure made in
new investments may result in entry into new products, services or new markets.
2) Capital budgeting decisions require large funds and generally have long repayment periods.
The results of capital budgeting continue to impact the finances of the firm for many years. Due
to long project life, assessment involves number of years of future events leading to difficulty
and uncertainty regarding the accuracy of assessment.
3) Capital budgeting decisions are mostly irreversible. They involve investment in plant and
machinery or new soft wares or technology etc. They are normally industry or user specific. If
the project does not proceed ahead, it may be difficult to find buyers for the assets and the only
alternative would be scar the assets at a huge loss.
4) An under investment will result in inefficient operations like inadequate capacity and, increased
expenditure, non-competitive production and pricing resulting in poor market share and have
serious financial implications. On the other hand an over investment would result in higher
depreciation and increased operating costs and result in liquidity crisis.

TYPE OF RESEARCH AND RESEARCH DESIGN

Research Methodology
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.

Nature of Research:
The study is descriptive and analytical in nature. It is descriptive as it describes the existing financial
instruments available in the market. It is analytical as it analyses the perception of the investors.

46
Area of research: New Delhi

Universe and Sample Size:

NCR region have been taken as universe of the study .Convenient sampling technique is used and
sample of 80 investors has been taken for the purpose of the study .Convenience sampling technique
is 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.

DATA COLLECTION

Data Collection and Sources

The study is based on both primary and secondary data. Following are the sources of secondary
data.

Primary Data:
For this project the primary data is collected in four ways:
a) Through observations
b) Through discussion ( Department Heads & Executives )
c) Through questionnaires
d) Through Sampling procedure
Secondary Data:
The secondary data is collected from various sources available within the organization like,
a) Organizational web site
b) Company Past records
c) Library books
d) Internet
e) Annual reports

47
Research Instruments:
Interview and questionnaire have been used to conduct the study. A structured questionnaire
consisting close-ended questions have been made, which is filled by the trainee during direct
interaction with the respondents.
Interviews have been taken of Relationship managers of different NBFC's and BANKS to seek the
investor’s behavior towards investment.

Analysis Pattern:
Critical examinations of various investment instruments have been done and a comparison is made,
based on their merits and demerits.
The data collected form questionnaire is edited, tabulated and analyzed. Various graphical
techniques have been used to present the data in more meaningful way.

STATISTICAL TOOLS:
Statistical techniques are to obtain findings and average information in logical sequence from the
raw data collected. After tabulation of data research have used the following quantitative technique.
 Percentage analysis
 Charts

 PERCENTAGE ANALYSIS
Percentage refers to special kind of ratio. This method is used as making comparison between two or
more services of data. Percentage charts are used to decidable relationship. Percentage can also be
used to compare the relative terries, the distribution of two or more services of data
 CHARTS
Bar charts and pie charts are used to get a clear look at the tabulated data.

48
LIMITATIONS OF THE 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.

49
 CHAPTER 5

DATA ANALYSIS AND INTERPRETATION

50
 1. Occupation

Frequency Percent Valid Percent Cumulative

Percent
Government employee 74 37.1 37.1 37.1

Private employee 46 22.9 22.9 60.0

Businessmen 54 27.1 27.1 87.1

Retired 26 12.9 12.9 100.0

Total 200 100.0 100.0

ANALYSIS:
For my analysis purpose I have 80% respondent out of which 200 respondents are
interested in investment in shares. Out of those 200, most interested investors are
government employees i.e. 37.1% and least interested in Shares are retired people i.e.
12.9% and rest 20 respondent are interested to invest in other securities because they
think that they earn more profit then Equity shares.

51
 2. Age Group

Frequency Percent Valid Cumulative

Percent Percent

20 – 40 88 44.3 44.3 44.3

40 – 60 63 31.4 31.4 75.7

Above 60 49 24.3 24.3 100.0

Total 200 100.0 100.0

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.

52
 3. Education
Frequency Percent Valid Cumulative
Percent Percent
Illiterate(uneducated) 20 10.0 10.0 10.0
Metric/senior secondary 34 17.1 17.1 27.1
Graduation 89 44.2 44.2 71.3
Post-Graduation 48 24.2 24.2 95.5
Doctorate 9 4.5 4.5 100.0
Total 200 100.0 100.0

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.

53
 4. Annual household income
Frequency Percent Valid Cumulative
Percent Percent
Less than 1.5 lakh 37 18.6 18.6 18.6
1.5 to 3 lakh 57 28.6 28.6 47.1
3 to 5 lakh 66 32.9 32.9 80.0
Above 5 lakh 40 20.0 20.0 100.0
Total 200 100.0 100.0

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.

54
 5. You are interested in investment

Frequency Percent Valid Cumulative

Percent Percent
Yes 197 98.6 98.6 98.6
No 3 1.4 1.4 100.0
Total 200 100.0 100.0

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.

55
 6. Where do you make investment?
Frequency Percent Valid Cumulative
Percent Percent
Fixed deposit 14 7.1 7.1 7.1
Property 6 2.8 2.8 9.9
Shares 146 72.9 72.9 82.8
Insurance 11 5.7 5.7 88.5
Mutual Funds 23 11.5 11.5 100.0
Total 200 100.0 100.0

ANALYSIS:
In this graph, out of 200 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

56
 7. Which in more profitable?

Frequency Percent Valid Cumulative

Percent Percent
Fixed deposit 21 10.0 10.0 10.0
Mutual funds 31 15.7 15.7 25.7
Shares 137 68.6 68.6 94.3
Commodity 11 5.7 5.7 100.0
Total 200 100.0 100.0

ANALYSIS:
From the above table, out of 200 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.

57
 8. What is your objective/motive behind investment?

Frequency Percent Valid Cumulative

Percent Percent
Long term profit 60 30.0 30.0 30.0
Regular profit 40 20.0 20.0 50.0
Secure future 63 31.4 31.4 81.4
Tax benefits 37 18.6 18.6 100.0
Total 200 100.0 100.0

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.

58
 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 200 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.

59
 10. Is investment in equity shares safe?

Frequency Percent Valid Cumulative

Percent Percent
Yes 191 95.7 95.7 95.7
No 9 4.3 4.3 100.0
Total 200 100.0 100.0

ANALYSIS:
In this graph, it is observed that out of 200 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.

60
 11. What is your expected return?

Frequency Percent Valid Cumulative

Percent Percent

Less than 10% 37 18.6 18.6 18.6

10% to 30% 109 54.3 54.3 72.9
Above 30% 54 27.1 27.1 100.0
Total 200 100.0 100.0

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.

61
 12. How much risk you can take?

Frequency Percent Valid Cumulative

Percent Percent
Minimum risk 83 41.4 41.4 41.4
Moderate risk 86 42.9 42.9 84.3
High risk 31 15.7 15.7 100.0
Total 200 100.0 100.0

ANALYSIS:
From the above graph, out of 200 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.

62
 13. Which information do you rely on?

Frequency Percent Valid Cumulative

Percent Percent
Prospectus/self-analysis 63 31.4 31.4 31.4

Newspaper 34 17.1 17.1 48.6

Investment advisor 43 21.4 21.4 70.0
TV 32 15.7 15.7 85.7
Friends 28 14.3 14.3 100.0
Total 200 100.0 100.0

Information

Prospectus/self
Analysis Newspaper
Investment
advisor TV
Friends

ANALYSIS:
In the graph, out of 200 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.

63
 14. What is the most important criterion for you for selecting a particular
equity shares?
Frequency Percent Valid Cumulative
Percent Percent
Past performance 80 40.0 40.0 40.0
Service 58 28.6 28.6 68.6
Promoters Background 31 15.7 15.7 84.3
Any other 31 15.7 15.7 100.0
Total 200 100.0 100.0

Most Important Criterion

Past
Performance
Service
Promoters
Background 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
service.

64
 15. What is your level of satisfaction from your equity shares?

Frequency Percent Valid Cumulative

Percent Percent
Satisfied 109 54.3 54.3 54.3
Dissatisfied 9 4.3 4.3 58.6
Neither Satisfied nor 82 41.4 41.4 100.0
Dissatisfied
Total 200 100.0 100.0

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.

65
 16. What deficiencies do you find in your equity shares?

Frequency Percent Valid Cumulative

Percent Percent
Track record 46 22.9 22.9 22.9
Transparency 54 27.1 27.1 50.0
Service Quality 51 25.7 25.7 75.7
Any other 49 24.3 24.3 100.0
Total 200 100.0 100.0

ANALYSIS:
From the graph out of 200 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.

66
 17. Is the commission charged by the trading site reasonable?

Frequency Percent Valid Cumulative

Percent Percent
Yes 126 62.9 62.9 62.9
No 74 37.1 37.1 100.0
Total 200 100.0 100.0

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.

67
 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 respondent’s 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.

68
 CHAPTER 6

SUGGESTIONS AND RECOMMENDATIONS

69
RECOMMENDATIONS
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

70
SUGGESTIONS
On studying the peculiarities of the wealth management industry and analysing the responses of
the investors on their perception, the following points are recommended which a general financial
advisor should consider while approaching the people.
India is seeing as a maturing financial environment. Options to attract savings exist through a
spate of financial products and services that have differing risk/growth and asset accretion
propositions. It is becoming increasingly obvious to people that their money, in real terms, would
fall in value if they were to keep their money in the bank. And hence the keenness to find out the
right avenue that would help grows their savings or assets.
While this is becoming a universally undeniable desire, the fact is that some people don’t have
the knowledge and inclination to understand the financial markets and others don’t have the time to
follow them. This then leads to financial decisions being taken by individuals based on either
relationship hearsay or the sales call of a vendor

Unbiased Advisory
Investment Advisory Services are in this business of managing the assets of individuals and
corporations. However, the distinct model of services should enable the advisors to offer unbiased
advice on the entire spectrum of personal finance, keeping the clients interest foremost while
doing so. The investment strategies developed across perpetuity should outline a detailed
financial plan with frequent reviews of investment decisions made to ensure that portfolios are in
line with what was planned. I’d like to add here that the financial advisory should not only be
unbiased with respect to an asset class but it should also be independent of biases across
manufacturers within an asset class.

Investment in Foreign Markets

A recent pioneering initiative is to facilitate for the clients investment in foreign markets, adding to
the advisory capability that spreads across the widest range of asset classes in the country. One
needs to be cautious while investing and it is now important to hire a financial planner to plan your
wealth better.

71
Financial Planning Should Be Encouraged
‘Financial planning’ is the process of charting out the money course of your life. It’s like
having a financial roadmap that guides your every step till you pass on the baton to the next
generation. In other words, it is a process in which an individual sets long-term financial goals
through investments, tax planning, asset allocation, risk management, retirement planning and
estate planning. Most of us approach our financial lives like the disorganized traveller who gets
to his destination eventually and perhaps even enjoys the rough ride. We think we have a clear
roadmap in mind, but our financial lives are marked by ad-hoc decisions and capitulation to the
temptations of the flavors of the financial season.
One of the myths regarding financial planning is that only rich individuals and HNIs can undertake
this. This perception exists because most players in the market target these people, as they are very
profitable customers. However, anyone can use financial planning. In fact, individuals should
use effective financial planning to build their wealth over the years.

Awareness of the Benefits of Planning Early for Retirement

Anyone who will retire needs to plan for it. There is more than one reason to save for retirement.
The all-important reason is the rising cost of living. It’s called inflation. If you start planning for
retirement early on, you can bridge the gap between what you have in your hand today and what
you would like to have when you retire. If you begin saving for retirement early on in your life,
you can set aside smaller amounts. You can also take on more risk by investing larger amounts in
equities i.e., stocks and equity funds. If you delay saving for retirement, you will have to invest
larger sums of money to save for the same amount; also the share of equity investments as a
portion of your retirement savings will have to be lower. The older you are when you start, the
more risk averse you will have to be. Your retirement portfolio will actually be a mix of
stocks, debt securities, index funds and other money market instruments. This mix will
change as you do, moving increasingly toward low-risk guaranteed investments as you age.
Unless planned well, retirement phase will be a downhill ride.
People should come out of the concept of just keeping their money in banks & should
concentrate on doing financial planning to maximize their returns by taking proper guidance from
financial planner.

72
 CHAPTER 7

CONCLUSIONS

73
CONCLUSION

The successful completion of this internship indicates that as I was engaged in studying the
behavior of customer towards the financial institutions. I have come to the following facts that
most of the investors aren’t aware of the various investment avenues available in the country. Of
which most of the older investors mostly invested in various kind of Retirement plans which are
available in the market and they want to have an average growth rate of their investment and the
main concern of their investment is tax-saving and they majorly have an apprehension of the loss of
their principal amount as this is one of the major factors that they think about before investing is
that of safeguarding of the principal amount, so in order to save money in order to meet their and
family’s future expenses and to be prepared for the retirement. In short, they aren’t quite interested
in doing investment and somewhat interested in debt market instruments to get a risk- free return
out of their investment when needed.
On the contrary, the new investors i.e. the ones who are in the age group of 20-30 years are
showing immense interest in doing investment in various securities that can not only benefitted
them for tax saving purposes but can also proves to be a measure of wealth creation, can provide
for their future expenses and also facilitate long and short term goals which can vary individual to
individual.
These new investors also keep them aware about the various investment avenues in order to generate
wealth and attain high return by investing in these in these securities.

74
 CHAPTER 8

BIBLIOGRAPHY AND ANNEXURE

75
 BIBLIOGRAPHY

Books & Research Papers:

rd
 Avadhani. V.A. “Investment Management”, 3 Edition, Mumbai: Himalaya Publish
House, 1999.
st
 Bhalla, B.K. “Security, Analysis and portfolio Management”, 1 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

76
 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

77
ANNEXURE

Name:-

Address:-

Mobile no.:-

E-mail address:-

1) Occupation:-
 Government Employee
 Private Employee
 Businessman
 Retired
2) Age Group
 20 - 40
 40 – 60
 Above 60
3) Education
 Illiterate (uneducated)
 Metric/Senior Secondary
 Graduation
 Post-graduation
 Doctorate

78
4) Annual Household Income
 Less than 1.5 lakh
 1.5 to 3 lakh
 3 Lakh to 5 lakh
 Above 5 lakh
5) You are interested in investment
 Yes
 No
6) Where do you make investment?
 Fixed deposit
 Property
 Share
 Insurance
 Mutual funds
6. Which is more profitable?
 Fixed Deposit
 Mutual fund
 Equity Share
 Commodity
7. What are your objective/ motive behind investment?
 Long term profit
 Regular profit
 Secure future
 Tax benefits
8. What are your objective/ motive behind investment?
 Long term profit
 Regular profit
 Secure future
 Tax benefits

79
9. How do you prioritize the reason for investment?
 Saving for future
 Tax saving
 Return
 Future outlook
 Brand value
 Risk factor
10. Is investment in equity share safe?
 Yes
 No
11. What is your expected return?
 Less than 10%
 10% to 30%
 Above 30%
12. How much risk you can take?
 Minimum risk
 Moderate risk
 High risk
13. Which information do you rely on?
 Prospectus/self-analysis
 Newspaper
 Investment advisor
 TV
 Friends

80
14. What is the most important criterion for you for selecting a particular Equity Share?
 Past Performance
 Service
 Promoters Background
 Any Other
15. What is your level of satisfaction from your Equity share?
 Satisfied
 Dissatisfied
 Neither Satisfied nor Dissatisfied
16. What deficiencies do you find in your Equity Share?
 Track record
 Transparency
 Service Quality
 Any other
17. Is the commission charged by the trading site reasonable?
 Yes
 No

18. How do you take financial decisions?

 Independently
 Advice from friends/ Relatives
 Advice from banks
 NBFC‟s Adviser
 Financial advisor
 Others

19. If independently, then what do you see while investing?

 Risk factor
 Fixed returns
 History of instrument
81
  Future growth
 Trend of other investors

20. Which tendency do you prefer the most?

 Low risk, low return

 Moderate risk, moderate return
 High risk, high return

82