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Financial Survey Project - Stock Market
Financial Survey Project - Stock Market
Financial Survey Project - Stock Market
Roll no.-22/phi/13
FINANCIAL
SURVEY PROJECT-
STOCK MARKET
INTRODUCTION
In this project, we are going to analyse a survey data surveyed with the help of
Google forms for checking the financial insights and knowledge of 31
respondents about their stock market experiences.
The findings of this survey promise not only to contribute valuable insights to
the financial research community but also to provide a resource for individuals
contemplating or actively participating in stock market investments. As we
embark on this journey, I anticipate uncovering a rich tapestry of experiences
that will inform, inspire, and foster a deeper understanding of the intricate
dance between individuals and the stock market. I’ve divided this survey into a
questionnaire of 15 questions to which respondents have had responded as
per their pre-requisite knowledge
Following are the questions which made a part of this survey data and helped us
in knowing these important insights :
Q1 What is your sex?
Q2 Are you aware of the stock market?
Q3 Have you ever purchased or sold stocks or invested in other type of
financial instruments ?
Q4 If you have purchased , how would you describe your level of experience?
Q5 What is your primary goal for investing in stock market?
Q6 What is your risk tolerance level? Rate it on a scale of 1 to 10 where 1 being
low and 10 being high tolerance level.
Q7 From where do you usually get information about the stock market?
Q8 Are you familiar with recent market trends and major economic indicators?
Q9 Do you prefer long-term or short-term investments?
Q10 What do you consider as the biggest risk in stock market?
Q11 How important do you think it is to diversify your investment portfolio?
Q12 Do you seek any professional advice before making investment decisions?
Q13 How frequently do you review and adjust your investment portfolio?
Q14 Do you use investment apps for managing your portfolio?
Q15 How confident are you in your ability to make informed investment
decisions?
QUESTION 1 |SEX
RATIO
The very first question gives us a glance of sex ratio disparity
between males and females indulged in stock market and finance
activities that how only 29% participants which is around 9
participants out of total strength of 31 are female and rest 22 are
male participants approximately 71%.
QUESTION 3|STEP-IN
MARKET
Having awareness about market is good but it can surge or
enhanced to next level when one decides to take active
participation in it by investing on their own in any stock for the first
time. This practical-to-theoretical approach is way better and gives
sustainable knowledge about functionality and real depth of market
trends that what is the actual risk factor involved in stock market.
QUESTION 4|
EXPERIENCE
Coming down with the previous question it is necessary to know the
experience level of our participants as well that whether they are
beginner, intermediate, advance or maybe some of them have not
invested yet. The most important factor which makes them different
from each other is their experiential knowledge and learning paths
which they have taken in their investing journey. As we’ve already
discussed that it is the knowledge which can make you good leaner
but it is the practicality which makes you a unique learner, your
experiences of up-hills and valleys in this journey of stock market
gives you the tag of a beginner, intermediate or advance.
One should never let this thought run through their mind that they
can’t earn huge stacks or won’t be able upscale ever in this journey
because don’t forget that even a pro-investor was once a beginner,
the only thing which made him reach at those heights was his
consistency and active learning reforms from mistakes.
QUESTION 5|GOALS
As a human being we have various needs and for satisfying them we
perform various activities which can be psychological,
physiological, emotional, economical, religious. The reason behind
them can be any goal which one has to achieve. Similiarly there are
lot of financial goals for which one look up towards stock market to
fullfill them and reach at a certain place where they can be much
financially stronger and sound. For one it can be capital growth
which means growing in terms of asset acquisition and preposition
value for, creating other source of regular income generation,
diversification of growth opportunities or future planning and safety
after retirement. All of these can be possible goals which can lead
an individual to look up to stock market investments.
As per my survey data, because the demographics indicates
towards younger participants, there are only 3.23% of total
participants who invest in stock market for retirement planning
while rest 54.84% and 38.71% of total participants being young are
majorly focused on income generation and capital growth
respectively. It is expected to see such trends because people with
retirement goals are more interested and gripped towards safe and
low risk investment schemes like FDs and Government Bonds.
QUESTION 6|RISK
APPETITE
Risk Appetite or Risk Tolerance represents the amount of risk, at a
broad level, that an individual is willing to accept in pursuit of his
strategic objectives. Risk Appetite reflects the risk management
philosophy that what is the propensity of that individual to adopt
and, in turn, influences its risk culture, operating style and decision-
making.
QUESTION 7|STOCK-
SAUCE
While one being completely unaware about ongoing stock market
trends and news, they can look forward to various sources
gathering information and seeking advice related to upcoming new
stocks and highly potential IPOs, having highest profitability and
strong fundamentals. One can be aware about future risk by being
updated about companies in which they might have had invested
earlier and take possible actions before the actual happening.
These sources can be news websites , financial advisors, social
media, your friends and family members who have already invested
earlier in market etc.
Following are some common sources in India for gathering stock
market sauce and trends :
There are several reliable sources of information for stock market news
and trends in India. Here are some popular ones:
2. Stock Exchanges:
National Stock Exchange (NSE): The official website of NSE provides
real-time stock market data, news, and updates.
Bombay Stock Exchange (BSE): Similar to NSE, the BSE website
offers information on stock prices, market trends, and news.
4. Newspapers:
The Economic Times: The Economic Times is a widely-read financial
newspaper in India. It covers stock market news, trends, and
analysis.
Business Standard: This newspaper provides in-depth coverage of
business and financial news, including stock market updates.
5. Financial Magazines:
Forbes India: Forbes India covers a range of business and financial
topics, including stock market trends.
Business Today: Business Today is a business magazine that
provides insights into various aspects of the business world,
including the stock market.
6. Financial Portals:
Investing.com: This portal provides a variety of financial
information, including stock market news, charts, and analysis for
the Indian market.
Money Rediff: Money Rediff offers financial news, stock quotes, and
market trends.
7. Mobile Apps:
Many financial news websites and news channels have mobile apps
that provide real-time updates on stock market trends. Apps like
Moneycontrol, ET Markets, and NSE Mobile Trading are popular
choices.
As per my report, 29.03% of the people are relied either on news websites
or social media platforms which is the highest among all of them. The
second highest option with 19.35% of reponses which people seek for are
the financial advisors which may not be the affordable option for others to
appoint someone who can look upto their portfolio and give them
suggestion. Lastly only 12.90% of the participants are dependable on their
friends and family members as a trusted source of financial news.
QUESTION 8|
FAMILIARITY
The level of familiarity among Indians with the stock market has
been increasing in recent years. India has seen a growing interest in
stock market participation, driven by various factors such as
economic development, increasing financial literacy, and the
availability of online trading platforms.
However, it's important to note that the level of familiarity can vary
widely among different segments of the population. Urban areas and
younger generations often exhibit higher levels of awareness and
participation compared to rural areas and older demographics.
Furthermore, the understanding of the stock market may range from
basic awareness to more advanced knowledge, depending on an
individual's educational background and exposure to financial
concepts.
QUESTION 9|LEAP OR
MARATHON
As we have already discussed that various individuals with different
economic and psychological goals choose different path to grow in
stock market. Some of them invest their money for quick capital
gains and income generation while others look up to it as a
prospective option of future safety funds and retirement planning.
This difference in needs of investors leads to the formation of a
thought process that whether one should go short-term investments
or long-term investments depending upon their goals.
QUESTION 10|RISK
TYPE
Investing in the stock market involves various types of risks, and
these risks can have psychological impacts on the decisions of
investors. Here are some common types of risks in the stock market
and their psychological effects:
Surveyed data shows that most of the participants are more concerned
about market uncertainties (volatility) and economic downturn as
compared to company specific risk, interest fluctuation and political
events. Economic downturn is the biggest fear of participants with a
surging percentage of 35.48% whereas the lowest concerned risk is any
political event that is about 9.68%.
QUESTION 11|
DIVERSIFY
Diversification is a fundamental principle in investment strategy,
especially in the context of the stock market. It involves spreading
one's investments across different asset classes, industries,
geographic regions, and types of securities to achieve a well-
balanced and risk-mitigated portfolio. The importance of
diversification cannot be overstated, as it plays a pivotal role in
managing and balancing risks associated with individual stocks or
sectors.
Balancing out the risk of losses in one sector against the growth of
another is a key advantage of diversification. Each sector of the
economy responds differently to market conditions and economic
cycles. For instance, during economic downturns, consumer staples
and healthcare sectors may demonstrate more resilience compared
to cyclical sectors like manufacturing or technology. On the other
hand, during periods of economic expansion, technology and
consumer discretionary sectors may outperform.
QUESTION 12|
ADVISORY
Seeking professional advice before making investment decisions in
the stock market is crucial for various reasons. While investing can
offer opportunities for wealth creation, it also comes with inherent
risks. Here's an overview of the importance of professional advice
and how it can help anticipate and manage future risks:
1. Regular Monitoring:
It's advisable to monitor your investment portfolio regularly, even if
you don't make adjustments each time. Regular check-ins allow you
to stay informed about the performance of your investments and any
changes in market conditions.
2. Quarterly or Semi-Annual Reviews:
Many investors choose to conduct more comprehensive reviews of
their portfolios on a quarterly or semi-annual basis. This frequency
provides a balance between staying informed about market trends
and avoiding overreacting to short-term fluctuations.
3. Changes in Financial Goals:
Review and adjust your portfolio when there are significant changes
in your financial goals or life circumstances. For example, if you
experience a major life event such as marriage, the birth of a child, or
retirement, you may need to reassess your investment strategy.
4. Market Changes:
Adjustments may be warranted in response to significant market
changes or economic developments. For instance, during periods of
increased volatility or major economic shifts, it's prudent to review
your portfolio to ensure it remains aligned with your risk tolerance
and objectives.
5. Rebalancing:
Rebalancing involves bringing your portfolio back to its target asset
allocation. If market movements cause certain asset classes to deviate
significantly from your original allocation, consider rebalancing to
maintain the desired balance of risk and return.
6. Tax Considerations:
Tax implications can be a factor in the decision to adjust a portfolio.
Consider reviewing and adjusting your investments with an
awareness of potential tax consequences, especially if you are
realizing capital gains or losses.
7. Review of Investment Strategy:
Periodically review your overall investment strategy. If your financial
goals or risk tolerance have evolved, it may be necessary to make
adjustments to better align your portfolio with your current situation.
8. Work with a Financial Advisor:
If you have a financial advisor, work closely with them to determine
the appropriate frequency for portfolio reviews based on your
individual circumstances. They can provide personalized guidance
and insights.
9. Stay Informed:
Stay informed about economic indicators, market trends, and global
events that may impact your investments. Regularly educate yourself
about changes in the financial landscape.
10.Long-Term Perspective:
While regular reviews are important, it's crucial to maintain a long-
term perspective. Avoid making impulsive decisions based on short-
term market fluctuations. Focus on the fundamental principles of
your investment strategy and financial goals.
QUESTION 14|TECH
GEEK
In the present-day modern world, technology has significantly transformed the way
individuals manage their investments and seek financial advice. Investment apps and
portfolio management apps offer users a convenient and efficient way to gain
insights, monitor their portfolios, and make informed financial decisions. Here are
some ways individuals can leverage technology, along with examples of popular apps
in the market:
1. Access to Information:
Investment apps provide real-time access to financial news, market updates,
and economic indicators. Users can stay informed about developments that
may impact their investment decisions.
2. Research and Analysis:
Apps often include tools for in-depth research and analysis. Users can analyze
stocks, funds, and other financial instruments, helping them make more
informed investment choices.
3. Portfolio Tracking:
Portfolio management apps allow users to track the performance of their
investments in real-time. They can view their asset allocation, individual
holdings, and overall portfolio value, facilitating better portfolio management.
4. Automated Investing:
Some apps offer robo-advisory services, where algorithms automatically
manage and rebalance a user's portfolio based on their financial goals, risk
tolerance, and investment horizon.
5. Goal-Based Investing:
Users can set specific financial goals (e.g., retirement, buying a home) within
the apps. The apps then recommend investment strategies aligned with those
goals and provide progress tracking.
6. Budgeting and Saving:
Many financial apps include budgeting and saving features. Users can link
their accounts, track spending, and set savings goals, creating a holistic
approach to financial management.
7. Educational Resources:
Investment apps often provide educational resources, articles, and tutorials to
help users enhance their financial literacy and make more informed
investment decisions.
8. Risk Assessment:
Apps may include risk assessment tools that help users understand their risk
tolerance. This information can be used to tailor investment recommendations
that align with the user's comfort level.
9. Mobile Trading:
Trading apps allow users to buy and sell stocks, ETFs, and other securities
directly from their mobile devices. These apps often offer intuitive interfaces
and real-time order execution.
10. Security Features:
Many investment apps prioritize security, incorporating features such as two-
factor authentication and encryption to safeguard user data and financial
information.
In India, there are several investment and portfolio management apps that
cater to the needs of investors. Here are some examples:
1. Zerodha:
Zerodha is a popular online discount brokerage platform in India. The
app provides a user-friendly interface for trading in stocks,
commodities, and currencies. It also offers features like mutual fund
investments and tools for technical analysis.
2. Upstox:
Upstox is another online brokerage platform that offers commission-
free equity delivery trades. The app provides a range of features,
including stock and commodity trading, mutual fund investments,
and market analysis tools.
3. Groww:
Groww is an investment platform that allows users to invest in mutual
funds, stocks, and gold. The app is known for its simplicity and
educational resources, making it suitable for both beginners and
experienced investors.
4. Paytm Money:
Paytm Money is an investment and wealth management platform.
Users can invest in mutual funds, National Pension System (NPS),
stocks, and digital gold. The app also provides tools for portfolio
tracking and market research.
5. Kuvera:
Kuvera is a robo-advisory platform that focuses on mutual fund
investments. The app helps users invest in direct mutual funds and
provides tools for goal-based investing, portfolio tracking, and tax
optimization.
6. Angel Broking:
Angel Broking is a full-service stockbroker with a mobile app that
offers features like online trading, investment advisory, and research
tools. It covers equities, commodities, currencies, and more.
7. ICICI Direct:
ICICI Direct is the online trading and investment platform of ICICI
Securities. The app provides a range of services, including equity and
derivatives trading, mutual fund investments, and research reports.
8. Sharekhan:
Sharekhan is a full-service brokerage platform with a mobile app that
offers features like equity and commodity trading, mutual fund
investments, and research tools.
9. Motilal Oswal MO Investor:
Motilal Oswal's app provides a comprehensive platform for trading
and investment. It covers various asset classes, including equities,
derivatives, mutual funds, and commodities. The app also offers
research reports and financial analytics.
10.5Paisa:
5Paisa is an online discount broker with a mobile app that allows
users to trade in equities, derivatives, commodities, and invest in
mutual funds. It provides a user-friendly interface and real-time
market data.
QUESTION 15|
CONFIDENCE
In the last question we have decided to look inside the minds of
participants to know about their confidence level while making
investment decisions. One can take financial advice from
professionals, use portfolio management apps, can diversify their
options in stock market to eliminate as much as possible risk factor
but afterall there is still some space left for doubtfulness and fear of
losses. It totally depends upon the gut-feeling of investors that
whether they are ready to make an investment in a particular
company or not.
Self-confidence plays a significant role in an investor's ability to navigate the ups and
downs of the stock market. Confidence can influence decision-making, risk tolerance,
and resilience during challenging market conditions. Here's a look at the role of self-
confidence in the stock market and how individuals can gain confidence through
their experiential journey:
Role of Self-Confidence:
1. Decision-Making:
Confidence can positively impact decision-making. Investors who are
confident in their abilities are more likely to make well-thought-out decisions
based on their analysis and research rather than succumbing to emotional
reactions.
2. Risk Tolerance:
Self-confidence is closely linked to an investor's risk tolerance. Confident
investors are often more comfortable taking calculated risks, which can be
essential for achieving higher returns. They are better positioned to stay
committed to their investment strategies during periods of market volatility.
3. Resilience:
Confidence contributes to resilience in the face of setbacks. Investors who are
confident in their long-term strategies are less likely to be swayed by short-
term market fluctuations. They can endure temporary downturns without
succumbing to panic selling.