A PROJECT REPORT

ON
A DETAILED STUDY ON CUSTOMER INVESTMENT BEHAVIOUR
IN STALLION CAPITAL MANAGEMENT

Submitted in Partial fulfillment of the requirements

for the award of the Degree of

POST GRADUATION DIPLOMA IN MANAGEMENT (FINANCE)

SUBMITTED BY

NAME: PRIYANSHI SINHA

ROLL NO.: 77120940084

SUBMITTED TO:

NARSEE MONJEE INSTITUTE OF MANAGEMENT STUDIES

CENTRE DISTANCE LEARNING MUMBAI (U.P.), 2022

AUG 2022

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2
 ACKNOWLEDGEMENT

This report has been made possible due to invaluable support of a number of people to whom
I owe my heartfelt gratitude and without whose help, I may not have been able to complete
this report. With regard to my Project with on “A DETAILED STUDY ON CUSTOMER
INVESTMENT BEHAVIOUR IN STALLION CAPITAL MANAGEMENT”, I would
like to thank each and everyone who offered help, guidelines, and support whenever re-
quired.

I acknowledge the help and cooperation received from all the faculty members of Stallion.
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 im-
plemented in my further attempts.

Thanking you!

PRIYANSHI SINHA
77120940084

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 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

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 8 Bibliography 74-81

Annexure

EXECUTIVE SUMMARY

The purpose of this survey is to identify changes and trends in the investment behavior of in-
surers 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
behavior across the whole sample. Furthermore, the analysis is based on end-of-year data and
Investment flow data which could possibly reveal additional insights were not used.

This research study is all about the feedback given by respondents on various products and
services of Stallion Capital Management. During the research there were some criteria for
collecting the data from respondents such as I had to collect the data only from target respon-
dents of target segments. I could not do a survey out of sample size. To collect the data I used
questionnaires and observations.
This study has given me a lot of practical knowledge about Investments and Investor’s be-
havior towards various products and services, and I have learned a lot of things from respon-
dents.
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 financing options available for investment.
 To study investor behavior.

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 CHAPTER 1

INTRODUCTION

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INTRODUCTION
In today’s scenario there has been a major change i.e. economic prosperity all over. The en-
tire 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 in-
vestors (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 diver-
sification. 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, sav-
ings 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 informa-
tion.

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 be-
havior of investors and investment preferences for the same. Investor’s perception will pro-
vide a way to accurately measure how the investors think about the products and services
provided by the company.

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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 in-
vestment option. The study could also be used by the financial sector in designing better fi-
nancial 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 fi-
nances. 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 deci-
sions. It allows understanding of how each financial decision a person makes affects other ar-
eas 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?

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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.

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 de-
cision 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.

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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. Involve-
ment is again dependent upon the perception that a particular financial product is able to sat-
isfy 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 lay-
man 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 uncer-
tainty 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.

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.
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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 con-
sider it as an investment class through which their long term needs can be met. The cus-
tomers need to consider the post-tax and post-inflation returns. Many of the financial institu-
tions 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 ed-
ucate the consumers.

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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, invest-
ment 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 hu-
man being. Investment is the commitment of funds which have been saved from current con-
sumption 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 in-
vestor 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 cap-
ital stock of the society. The capital stock of the society is the goods which are used in
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 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, equip-
ment, and inventory.

2) Financial Investment: This is an allocation of monetary resources to assets that are ex-
pected 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 in-
vestments 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 invest-
ment 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 in-
vestment decisions are traditionally concerned with uses or budgeting of money.

INVESTMENT OBJECTIVES

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

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 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 ob-
jectives 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 in-
vestment. 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 mar-
kets and their present and future financial security.

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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, insur-
ance companies, pensions, hedge funds, REITs, investment advisors, endowments, and mu-
tual 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 in-
vestment. 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.

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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 in-
come 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 princi-
pal 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 in-
vestors may revaluate expected returns and risk for each investment.

4) Liquidity: Liquidity is also important factor to be considered while making an invest-

ment. 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 invest-
ments. 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 re-
turn on investment.
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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 prin-
cipal 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 considera-
tion 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 in-
vestment objectives.

1) Period of Investment- It is one major consideration while selecting avenue for in-
vestment.

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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 offer better returns and may
carry slightly more risk can be considered, and lastly

c. Long Term (3 years and above) – As the time horizon is adequate, an investor can look
at the investment that offers the best returns and is considered riskier.

2) Risk in Investment:- Risk is another factor that 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.
Risks 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 mini-
mize the risk and maximize the return on the investment.

INVESTMENT ALTERNATIVES
Wide varieties of investment avenues are now available in India. An investor can himself se-
lect the best avenue after studying the merits and demerits of different avenues. Even finan-
cial advertisements, newspaper supplements on financial matters and investment journals of-
fer 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 impor-
tant financial assets are equity shares, corporate debentures, government securities, deposit
with banks, post office schemes, mutual fund shares, insurance policies, and derivative in-
struments. Real assets are represented by tangible assets like residential house, commercial
property, agricultural farm, gold, precious stones, and art object. As the economy advances,
19
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.

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 speci-
fied 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 in-
tend to earn an income from their saving. The banks, therefore, impose certain re-
striction on the saving bank account and also offer a reasonable at of interest.
3. Recurring Deposit or Cumulative Deposit Accounts

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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 num-
ber of time.

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 advan-
tage of pre mature withdrawal. KVP is sold through all head post office and other Au-
thorized post office throughout India. The rate of return is 8.41%, compounded annu-
ally 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 inter-
est income to investors. The post office MIS gives a return of 8 percent plus a
bonus of 10 percent on maturity.

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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 annu-
ally. 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.

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 re-
turns 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. Compa-
nies performance should be monitored closely in order to track the investment perfor-
mance.

2. Debt. Instrument
22
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 trans-
ferability 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 trad-
ing 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 in-
vests 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 com-
mon investment objective place their contributions that are to be invested in accor-
dance 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/ per-
mitted 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 follow-
ing schemes:

1. Life Insurance Premium: Life insurance premium paid by a person on his life or on the
life

23
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 deduc-
tion up to a limit of Rs.1,00,000.

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

ings Certificate issued by post office is entitled for deduction.

5. Unit Linked Insurance Plan (ULIP): Investments made by an individual for partici-
pating 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.

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

24
 CHAPTER 2

COMPANY PROFILE

25
STALLION CAPITAL MANAGEMENT

Stallion Capital is a wealth advisory firm, which works with successful people at different
stages of their lives and provides them with the expert strategic financial advice they require
to achieve, or maintain financial independence. Our clients want to take control of their fin-
ancial 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.

The 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 the client base is
spread across, BFSI Sector & Telecom. Since the company has a large client base in the
Banking Sector consisting more of Public Sector Banks. A few of the prominent Banks are
Punjab National Bank, Bank of Karnataka, Bank of Baroda, Andhra Bank, etc. Stallion Cap-
ital Management is able to facilitate various training and development programs/internships
in India and abroad with top B-schools and has trained almost 52000 and above interns to
date. The company is having assets under management of 80cr. The operations of the com-
pany are spread beyond the national boundaries of India.

26
Mission Statement

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

Vision Statement

“To be the 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, and industrial leading prices.

27
SERVICES

We work on the following area:

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

 Portfolio Management:
Portfolio Management refers to the science of analyzing the strengths, weaknesses,
opportunities, and threats for performing a wide range of activities related to 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 as 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 the 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.

28
KEY COMPETITORS
 Jazaa Financial Advisory Pvt. Ltd.
 Hexagon Wealth Advisors
 Edelweiss Financial Advisors
 Archana Financial Advisor
 Fortis Financial Services

29
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

30
PORTER’S FIVE FORCES ANALYSIS
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.

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.

31
a) 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 programs)
• High fixed costs
• Scarcity of resources

b) 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 higher profitability than the buying industry
• Supplier switching costs relative to firm switching costs

c) 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:
• Buyer propensity to substitute
32
• 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

33
 CHAPTER 3

LITERATURE REVIEW

34
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.

35
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 behav-
ioral scientists such as Weber, Shiller and Shefrin. Shiller who strongly advocated
that stock market is governed by the market information which directly affects the be-
havior of the investors. Several studies have brought out the relationship between the

36
 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.

2) Wallach and Kogan were perhaps the first to study the relationship between risk toler-
ance and age. Cohn, Lewellen et.al found the risky asset fraction of the portfolio to be
positively correlated with income and age and negatively correlated with marital sta-
tus. 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 holding was not uniform. He found individu-
als to increase their investments in risky assets throughout their working lifetime, and
decrease their risk exposure once they retire.

Panjali and Kasilingam (2015) in their study state that the investment behavior of investors
can be studied in various ways. Lifestyle is another important factor that influences the
investment behavior of people. So now it becomes important for the intermediaries and
capital market operators to know the lifestyle of the investors to design effective instruments
that 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.

Ramprasath .S and Dr. B. Karthikeyan , December 2013, on individual investors’

behavior towards select investments, states that the majority of the investors are giving much
importance for the factor “safety”. Similarly investment avenues such as Bank deposits, LIC
polices and Bullion has been preferred by the individual investors. Similarly the majority of
the investors are periodically evaluating the performance of their investment avenues.

Sunil kumari on investment attitude of rural investors(august 2012-july 2013 ) states

that all of the rural investors consider the risk and return on investment and most of them are
also dependent on financial advisor’s opinion because of lacking the depth knowledge of

37
market. But generalization of the study is subject to its limitations like unwillingness of
respondents, limited period of time, lack of literacy of rural investors etc. it is concluded that
psychological theory planned behavior reflects in rural people’s investment decisions along
with a finance theory is concepts i.e. risk and return equilibrium/ trade off.

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. Ul-
timately this facilitates more employment and job creation with the growth of other main-
stream industries. The financial services industry manages money for individuals and corpo-
rations. 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 De-
cember 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.

38
  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 re-
ceived 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.

Government incentives for financial services industry

SEBI has allowed exchanges in India to operate in equity and commodity segments simulta-
neously, 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 five-
fold 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 fi-
nancial asset classes. But landscape is changing rapidly at present.

39
The relaxation of foreign investment rules has received a positive response from the insur-
ance sector. Many foreign companies announcing plans to increase their stakes in joint ven-
tures with Indian companies.
Over the coming quarters there could be a series of joint venture deals between global insur-
ance giants and local players. We are positive on the brokerage industry, few holding compa-
nies, low-cost housing finance industry and insurance industry for 2018 and beyond. NBFC
Industry is one of our favorite industries at present where as we foresee challenges in Indian
baking sector.

40
 CHAPTER 4

NEED, SCOPE AND OBECTIVES OF THE STUDY

41
OBJECTIVES

The objectives of the study are

 To study the various financial opportunities available for investment.
 To study the investor’s perception regarding various investment opportunities
available in the market
 To analyze the investment patterns of the investment,
 To study on investor’s behavior on various financial opportunities for investment in
Stallion Capital Management

NEED OF THE STUDY

The need for 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 behavior in stallion
capital management. Considering the ample importance of this aspect, the present study was
conducted to study the behavior of investors and determine their awareness level regarding
various investment avenues available in Stallion Capital Management.
This analysis of 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 preferences
with respect to their investments. The study also tries to unravel the influence of
demographic factors like age on the risk tolerance level of the investor.

SCOPE OF THE STUDY

The project will give an idea about the investment behavior of the investors in Stallion
Capital Management. It will guide them in creating strategies for the sales force to target
their potential customers. Questionnaire developed for the survey will help the stallion
managers to identify 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.

42
 CHAPTER 5

RESEARCH METHODOLOGY

43
RESEARCH METHODOLOGY:
Research methodology is a way to solve the research problem in a systematic manner. It may
understand as a science of studying how the research is done significantly. The methodology
may differ from problem to problem, yet the basic approach towards the research remains the
same. The sequence or steps followed have been explained as under: 

STATEMENT OF THE PROBLEM

Consumer investing behaviour in Stallion Capital Management is the broad characterization

of the problem. This investigation was done to provide a more thorough understanding of the
investor's behaviour when investing in Stallion Capital's financial prospects. Because cus-
tomers are not properly informed about the many investment possibilities available to them.
When people decide to invest, the main issue arises from the lack of an appropriate agency to
guide the investors in accordance with their preferences because their investing attitudes are
influenced by so many external circumstances. If a consumer invests, they run the danger of
losing their hard-earned cash.

OBJECTIVES
The objectives of the study are
 To study the various financial opportunities available for investment.
 To study the investor’s perception regarding various investment opportunities avail-
able in the market
 To analyze the investment patterns of the investment,
 To study on investor’s behavior on various financial opportunities for investment in
Stallion Capital Management

SCOPE OF THE STUDY

The research will provide insight into the Stallion Capital Management investors' investing
habits. They will use it as a guide when developing sales force targeting tactics. The survey
questionnaire will assist the stallion management in identifying their potential buyers for a
specific product. The study will also assist them determine the needs of the coming genera-

44
tion and their investment preferences, which will aid in the creation of goods and services for
them. The study's geographic focus was only on Delhi.

MANAGERIAL USEFULLNESS OF THE STUDY

1) They specify the strategic direction and focus of the company. The capital outlay for
new investments may lead to the arrival of new goods, services, or markets.
2) Capital budgeting choices typically involve substantial financial outlays and protracted
repayment schedules. The effects of capital budgeting have long-term effects on the
company's finances. Due to the lengthy project lifespan, the evaluation must take into
account a number of years' worth of future occurrences, which creates complexity and
doubt about the assessment's accuracy.
3) Most choices made during the capital budgeting process are final. They entail invest-
ments in new software, hardware, and other types of technology. Typically, they are
user- or industry-specific. Finding buyers for the assets may be challenging if the project
does not move forward; the only other option would be to sell the assets at a significant
loss.
4) A lack of investment will lead to inefficient operations, such as insufficient capacity, in-
creased costs, uncompetitive production and pricing, which will result in a low market
share, as well as major financial repercussions. On the other side, excessive investment
would lead to increased operational costs, higher depreciation, and a liquidity problem.

45
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. Re-
search is an art of scientific investigation. In other word research is a scientific and system-
atic 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 pro-
cedure 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.

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 sam-
pling technique is used for collecting the data from different investors. The investors are se-
lected 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 sam-
pling. Convenience sampling is at its best in surveys dealing with an exploratory purpose for
generating ideas and hypothesis.

46
DATA COLLECTION

Data Collection and Sources

The study is based on both primary and secondary data. Following are the sources of sec-
ondary 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 website
b) Company Past records
c) Library books
d) Internet
e) Annual reports

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.

47
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.
a) Percentage analysis
b) Charts

PERCENTAGE ANALYSIS
Percentage refers to special kind of ratio. This method is used as making comparison be-
tween two or more services of data. Percentage charts are used to decidable relationship. Per-
centage can also be used to compare the relative terries, the distribution of two or more ser-
vices 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 popu-
lation 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 6

DATA ANALYSIS, INTERPRETATION AND FINDINGS OF THE

STUDY

50
 DATA ANALYSIS AND INTERPRETATION

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

51
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 peo-
ple i.e. 12.9% and rest 20 respondent are interested to invest in other securities be-
cause they think that they earn more profit then Equity shares.

2. Age Group

Frequency Percent Valid Per- Cumulative

cent 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

52
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 be-
tween 40 – 60 years.

3. Education
Frequency Percent Valid Per- Cumulative
cent 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

53
ANALYSIS;
From the above graph, it is observed that 44.2% of the respondents are graduates,
24.2% of the respondents are Postgraduates, 10% of the respondents are illiterates and
3% of the respondents are doctorates. The majority of the respondents are graduates.

4. Annual household income

Frequency Percent Valid Per- Cumulative
cent 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

54
ANALYSIS:
From the above graph, it is observed that 18.6% of respondents fall under the in-
come group of less than 1.5 lakh 28.6% of our total respondents fall under t h e
1.5-3 lakh income group, 32.9% (maximum) respondents fall under the income
group of between 3 to 5 lakh and 20% respondents fall under income group above 5
lakh.

5. You are interested in investment

Frequency Percent Valid Per- Cumulative

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

55
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.

6. Where do you make investment?

Frequency Percent Valid Per- Cumulative
cent 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:

56
In this graph, out of 200 respondents, it is observed that 72.9% of respondents prefer to
invest in shares, 7.1% of respondents prefer to invest in a fixed deposit, 11.5%respon-
dents prefer to invest in mutual funds, and 8.5% of respondents prefer to invest into
property & insurance

7. Which is more profitable?

Frequency Percent Valid Per- Cumulative

cent 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:

57
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 respon-
dents are saying fixed deposit & other 4% are saying commodity in more profitable.

8. What is your objective/motive behind investment?

Frequency Percent Valid Per- Cumulative

cent 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:

58
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.

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:

59
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.

10. Is investment in equity shares safe?

Frequency Percent Valid Per- Cumulative

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

ANALYSIS:

60
In this graph, it is observed that out of 200 respondents who are interested in invest-
ment into shares, 95.7% respondents are saying that equity shares units are safe
and 4.3% respondents are saying equity shares are not safe.

11. What is your expected return?

Frequency Percent Valid Per- Cumulative

cent 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 respon-
dents 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% of respon-
dents can bear minimum risk, 42.9% majority of respondents can bear t h e moder-
ate risk and 15.7% of respondents can bear high risk.

62
13. Which information do you rely on?

Frequency Percent Valid Per- Cumulative

cent 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% o f respondents collect
information through the newspaper, 21.4% of respondents take information through
an investment advisor, 15.7% of 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% o f respondents purchase or invest in shares
for promoter’s background and any other, and 28.6% purchase or invest in shares for
service.

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

Frequency Percent Valid Per- Cumulative

cent 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 t h e above graph, it is observed that 54.3% majority of t h e respondents
are satisfied to purchase a mutual fund and 4.3% of the respondents are not satisfied to
purchase a share.

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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 shares, 24.3% respondents are saying that any other

66
reason is deficiencies in shares & 25.7 of the respondents saying service quality is the
deficiencies of shares.

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 the commission
is charged by the trading site and 37.1% of the respondents are saying there is
no commission charged by the trading site.

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FINDINGS

 Respondents who are retired have the least interest in investing in equity shares
since they need a steady income.
 The majority of respondents in the 20 to 40 year age range are interested in in-
vesting in equities shares because they want capital growth.
 Because they make more money from FDs, mutual funds, property, and insur-
ance, 12.5% of respondents don't invest in equity shares.
 The majority of respondents purchase shares to save on taxes and ensure a sta-
ble future.
 Rather than self-analysis, people depend increasingly on information provided
by investment advisers.
 37.1% of respondents said they were satisfied with the trading site because there
are no additional fees.
 Of those surveyed, 54.3% are happy with their equity shares, while 41.4% are
neither happy nor unhappy.
 Lack of knowledge is the biggest issue that people encounter.
 28.6% of respondents believe that FDs are more profitable than stocks.
 According to the survey, 97.1% of respondents believe that shares have a
promising future.
 The majority of people in India are unaware of shares.
 12.5% of persons said they were not considering investing in shares because of
a poor experience or a lack of funds.

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 CHAPTER 7

RECOMMANDATIONS AND SUGGESTIONS

69
SUGGESTIONS AND RECOMMENDATIONS

RECOMMENDATIONS
Following are the recommendations of the study:
 Shares, mutual funds, and other types of investments tools were most popular among
investors. The potential of other instruments and techniques, which can be more ad-
vantageous to investors, should thus be made known through a variety of other chan-
nels.
 When making investments, investors take into account a variety of criteria, such as
risk, return, liquidity, etc. To be able to determine when they need return instead of
liquidity and when they need capital appreciation instead of risk reduction, an investor
must be able to think rationally.
 The desired time frame for investments by investors depends on their needs, such as
whether they want quick and big profits or stable returns. Most likely, a lengthy time
frame is best because it offers both high returns and safety.
 Due to the varied investment options that individual investors choose, their levels of
satisfaction vary. Their level of pleasure will also be great if they are informed of ev-
ery type of alternative and its value before making an investment.
 Investors need to be fully informed about the stock market.

SUGGESTIONS
The following items are suggested as things a general financial advisor should think about
when approaching people after researching the unique aspects of the wealth management
sector and examining investor reactions on their perspective.

70
The financial landscape in India is thought to be developing. A variety of financial products
and services with various risk/growth and asset accretion propositions are available as op-
tions for attracting savings. It is becoming more and more clear to consumers that keeping
their money in the bank would actually decrease its real value. Therefore, they are eager to
identify the best route that would aid in growing their assets or savings.
While it is becoming clear that everyone wants to be wealthy, some people lack the knowl-
edge and motivation to do so, while others lack the time to keep up with the financial mar-
kets. This results in people making financial decisions based on either relationship gossip or
a vendor's sales call.

Unbiased Advisory
Investment advisory services manage the assets of both private persons and corporate entities.
However, the unique model of services should allow the advisers to provide objective advice on
every aspect of personal finance, always keeping the client's best interests in mind. A thorough
financial plan should be outlined in the investment strategies created over the long term, and in-
vestment selections should be reviewed frequently to make sure that portfolios are following the
strategy. I'd want to add that the financial advisory should be free from prejudices among manu-
facturers within an asset class in addition to being objective with regard to an asset class.

Investment in Foreign Markets

A recent ground-breaking project is to make it easier for clients to participate in overseas
markets, expanding the advisory capacity that spans the nation's broadest array of asset
classes. One must exercise caution when investing, and it is now crucial to work with a
financial planner to better organise your finances.

71
 CHAPTER 8

CONCLUSIONS

CONCLUSION
The fact that I was able to complete this internship successfully proves that I was actively
researching how customers interact with financial organisations. I've discovered the
following facts: most investors aren't aware of the many investment opportunities the nation
72
has to offer. Of which most of the older investors primarily invested in different types of
Retirement plans that are available in the market, they want to have an average growth rate of
their investment, the main concern of their investment is tax-saving, and they primarily 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 prevent this from happening, they should invest in retirement plans that offer average
growth rates.

In other words, they are slightly interested in debt market instruments to earn a risk-free
return on their investment when needed but are not entirely interested in making investments.
On the other hand, young investors, or those between the ages of 20 and 30, are very
interested in making investments in a variety of securities that can help them not only save
money on taxes but also help them build wealth, pay for their future expenses, and help them
achieve both long-term and short-term goals that can vary from person to person.

These new investors also keep them informed about the different investment options
available to them so they can invest in these securities and earn wealth and great returns.

73
 CHAPTER 9

BIBILIOGRAPHY AND ANNEXURE

74
QUESTIONNAIRE

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

75
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
76
  Secure future
 Tax benefits

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

77
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

78
  Financial advisor
 Others
19. If independently, then what do you see while investing?

 Risk factor
 Fixed returns
 History of instrument
 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

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.

79
 Desigan Gnana, Kalaselvi S and Anuya L (2006), “Women Consumers
Perception Towards Investment: An empirical Study, “Indian Journal of Mar-
keting, 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 pub-
lishing house pvt ltd, New Delhi.
 Business Standard

 Fact sheet and statements of various funds houses

 Hanson, Thomas A., and Peter M. Olson. "Financial literacy and family com-
munication patterns." Journal of Behavioral and Experimental Finance 19 (2018):
64-71
 Salim, A., and S. Khan. "The effects of factors on making investment deci-
sions among Omani working women." Accounting 6, no. 5 (2020): 657-664
 Mudzingiri, Calvin, John W. MutebaMwamba, and Jacobus Nicolaas Keyser. "Finan-
cial behavior, confidence, risk preferences and financial literacy of university stu-
dents." Cogent Economics & Finance 6, no. 1 (2018): 1512366.
 Nguyen, Linh, Gerry Gallery, and Cameron Newton. "The joint influence of fi-
nancial risk perception and risk tolerance on individual investment decision‐mak-
ing." Accounting & Finance 59 (2019): 747-771.
 Palmer, Joshua C., Yunhyung Chung, Youngkyun Park, and Gang Wang. "Affectiv-
ity and riskiness of retirement investment decisions." Personnel Review (2020).
 Tong, Suk Chong. "Perceived risk and the interplay of expert endorsement,
corporate image and investment knowledge in mutual fund advertising." Journal of
Financial Services Marketing 23, no. 3 (2018): 179-189.

80
  Khan, Mostafa Saidur Rahim, Naheed Rabbani, and Yoshihiko Kadoya. "Is Fi-
nancial Literacy Associated with Investment in Financial Markets in the United
States?." Sustainability 12, no. 18 (2020): 7370.
 Yang, Songling, Muhammad Ishtiaq, and Muhammad Anwar. "Enterprise risk
management practices and firm performance, the mediating role of competitive ad-
vantage and the moderating role of financial literacy." Journal of Risk and Financial
Management 11, no. 3 (2018): 35.

 Liao, Li, Jing Jian Xiao, Weiqiang Zhang, and Congyi Zhou. "Financial literacy and
risky asset holdings: evidence from China." Accounting & Finance 57, no. 5 (2017):
1383-1415.

 Ahmad, Maqsood, and Syed Zulfiqar Ali Shah. "Overconfidence heuristic-driven bias
in investment decision-making and performance: mediating effects of risk percep-
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ministrative Sciences (2020).

Web Sites:

 www.the-finapolis.com
 www.stallioncap.com
 www.mutualfundsindia.com
 www.moneycontrol.com
 www.yahoofinance.com
 www.threeconomictimes.com
 www.rediffmoney.com
 www.bseindia.com
 www.nseindia.com
 www.investopedia.com
 www.amfiindia.com

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 www.altavista.com
 www.sebi.gov

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