Akash Brahmbhatt

A

PROJECT REPORT BASED ON

“ANALYSIS OF INVESTMENT IN STOCK MARKET”

AS SUMMER TRANNING IN

VISHESH CAPITAL PRIVATE LIMITED

PROJECT GUIDE Prof. Nisarg Joshi

SUBMITTED BY

NAME : - Akash Brahmbhatt ENROL. NO. : - 61

A Project Report Submitted In Partial

Fulfillment of Award of M.B.A. Degree

SUBMITTED TOAHMEDABAD INSTITUTE OF TECHNOLOGY

2

Analysis of Investment In Stock Market

AHMEDABAD INSTITUTE OF TECHNOLOGY

CERTIFICATE

This is to certify that a financial Report of Analysis of investment in stock market is submitted by Akash Brahmbhatt to the Ahmedabad Institute of technology affiliated to Gujarat Technological University in the partial fulfillment of the completion of practical studies of the requirement of the completion of practical studies of second semester M.B.A. programme.

Project In-Charge External ________________ __________

Date: 28th July 2012

Ahmedabad Institute of technology Vishesh Capital Pvt. Ltd.

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Declaration

I, Akash Brahmbhatt, Roll No. 61 students of Semester

II Ahmedabad Institute of Technology (AIT-MBA) hereby declare that I have

successfully completed this project on ‘Analysis of investment in stock market’ in

the academic year 2011-2013.

I declare that this submitted work is done by me and to

the best of my effort; no such work has been submitted by any other person for the

award of degree.

I also declare that all the information collected from

various secondary and primary sources has been duly acknowledged in this project

report.

Name: Akash Brahmbhatt

Enrollment No:


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ACKNOWLEDGEMENT

I am highly thankful to the management and staff of Vishesh Capital Pvt. Ltd. I am especially thankful to,

(1) Mr. Amit Rana (Branch manager)

(2) Mr. Rajesh Thanki (Marketing manager )

For helping me in my ‘practical studies’. In addition To allowing me to visit the company and study the Company and study the organization, they provide me With many details which were very useful in preparing this report,

I take this opportunity to thank Vishesh Capital Private Limited Director, Prof. Nisarg Joshi, professors & in charge also for the their excellence support and the office staff for providing us all the facilities for making the visit more learning oriented.

With thanks…

Place: Ahmadabad Vishesh Capital Pvt. Ltd,

Akash Brahmbhatt

Enrollment No. - 61


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PREFACE

This finance report has played a guiding role in imparting knowledge of finance world. The financial aspect helps in the monetary terms which are useful in day-to-day life and corporate world. This training helped in knowing the financing the finance policies and norms which gave me the basic knowledge and view of financing. To fulfill the objective of corporative of corporate world’s theory, the finance report has been prepared. In this direction, I have tried my level best to present a report.

Education is something which is not given in class rather; it is a process which can take place anytime and at any place. To survive in a competitive environment, theoretical knowledge must be supplemented with practical knowledge. Being a management student, project forms essential part of our course and bridges the gap between theoretical knowledge and practical application of it.

India is growing fast as an industrial & corporate nation with the help of new technology, advance management, and advance knowledge of people. Now, people‘s thoughts are changed and they turn to the management course. It is said, without effective management and proper planning, not a single firm can run smoothly, effectively and efficiently.


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EXECUTIVE SUMMARY

This report will give you the perfect understanding of the

various investments could be done by investors. I have made the research on the topic

“Analysis of investment in stock market”.

Assignments assign to me:

The very first assignment assigned to me was to understand whole working and

policies of the organization.

Daily Analysis of share prices of several companies.

Survey on various investment options.

Marketing of the organization.


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TABLE OF CONTENTS

NO. PARTICULAR PAGE NO.1. Company Profile 82. Establishment of Vishesh Capital 93. Research Methodology 104. About Vishesh capital 145. History of Stock Market 196. History of Indian Stock Market 207. Exchanges in India 218. Establishment of BSE 229. Establishment of NSE 2310. Regulation of Exchanges 2411. Reason for establishment of SEBI 2512. Introduction of Analysis and stock 2613. Introduction of Investment 2714. Characteristics of Investment 3015. Importance of Investment 3216. Investment Avenues 3517. Classification of Investment in stock Market 3918. Classification in terms of Market Capitalisation 4019. Portfolio 4620. Risk and Return in Investment Avenue 4821. Testing of Hypothesis 4922. Analysis of questionnaire 5323. Findings 6624. Conclusion 6925. Learning 7126. Bibliography 72


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Company Profile

Company Name : - Vishesh Capital Private Limited.

Branch Office : - K2, K3, K4 Shree Krishna Centre, First Floor, Mithakhali Six Road, Navrangpura, Ahmedabad - 380009

Corporate Office : - 518/520, Ground Floor,

Gurukripa Building,

S.V.P. Road, Opera House,

Mumbai-400004

Phone No.:- 022 – 42121111

Registered Office : - 7/59, First Floor, Office N0. 1, Nagdevi Street,

Mumbai - 400 003 Tel: 022 - 43675555 / 500

TOLL FREE NO: - 1800-22-8191

Slogan : - Relationship, Growing together with unshakable trust

Promoters : - Mr. Rakesh Kadakia

Name of Directors

Board of director : - Mr. Mrudang Goradia,

Mr. Ankit Chheda,

Mr. Sanjay Sheth


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Establishment of Vishesh Capital

Vishesh Capital Private Limited is an upcoming new generation broking house & one of the fast-growing companies promoted by techno-savvy experienced professionals who have over 100 years collective exposure to stock market since 1990. Since its inception, Vishesh Capital Private Limited has sought to provide premium broking services & information, which has helped them to add not only retail investors but also Institutional Investors, Corporate & High Net worth Individuals.

Powered by the presence in all segments of financial services with tried and proven capabilities, investors are served through branches and franchisees who are lively connected with the Head office to provide personalized and customized services to clients spread across the country. Most importantly, with more than 20 year’s straight experience in the market, you could be sure of best in class research, operations, backend support and above all, a vision that inspires trust.

Vishesh Capital Private Limited has planned to make its presence across the country through a network of business associates under different and customized schemes, who will be our partner in progress. We are looking for visionary entrepreneur who have the zeal and enthusiasm to make it big and help them realizing our vision & mission.


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RESEARCHMETHODOLOGY


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Statement of problem

A share market is continuously fluctuating in recent time, investors’ needs to understand the implication of different parameter guiding in this situation for investing in share market. In the stock market investment is the challenge for investors so that they can get particular idea about their investment by the report.

Day-by-day new investment option is available for investors so that they have lots of opportunity in the market for investment. Due to lack of enough knowledge they are confuse to invest in stock market. This report will facilitate for them, taking better decision for their investment.

Objectives of the study

To provide basic idea of different stock market investment instruments to investor.

To provide knowledge to investor about various type of risk associated with various

investment instruments.

To facilitate investor in learning about derivative instrument for future.

To know about volatility in investing in the market.

For knowing where we should invest in future & getting the idea about that from

where we can get maximum return.


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Research Design

For any researcher the research methodology is the most

important criteria to decide before the actual research process starts. The Research

Design for this report is Descriptive because it provides all the opportunities to cover

all the aspects that are required to conduct the research and get an appropriate outcome.

Hypothesis

A hypothesis is a proposed explanation for an observable phenomenon. The

various hypotheses tested in this research are mentioned below:

Methodology

a. Data collection sources:

Primary: Data collected through questionnaires.

Secondary: Secondary data was collected from website & professional

experts.

b. Sampling Plan:

Sample size: The study is based on 50 people.

Sampling unit: Each was selected in the sample had prior information and were

familiar and not familiar with its usage.

Sampling method: Probability convenience sampling.

Geographical Scope: Areas were selected randomly across the city.

Research Instruments for data collection: Questionnaire.

Statistical tools: Tests such as chi-square test and ANOVA were used to analyze

data and test the hypotheses


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Assumption

The research was based on the following assumptions:

The selected samples represent the whole population.

We have assumed that people who were selected for survey would give true

responses while filling the questionnaire.

The selected samples are those where some are not familiar of investment in share

market.

Beneficiary of study

It will be helped to the people for understanding the concept of investment and

use of it for making better future & maximum return.

To understand the human thoughts behind the investment in stock market. Why

they are investing here & why they are not investing here.

It is beneficiary to the common man whoever can get some idea about the

investment in stock market.

As part of our future it will help us for our financial planning.

Limitation of study

Personal bias: Some people may have had personal bias due to which they

may not have given the correct information and due to which

the right conclusion may not be have been derived at.

Sample size: The Sample size taken is only 50; which may not result in

Very accurate results.

Time limit: The time limit taken for conducting the research was less, it


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could also be one of the limitations of the study.

About the Vishesh Capital Pvt. Ltd.

Vishesh Capital (India) Pvt. Ltd. is a company formed under

the Indian Companies Act, 1956 associated with an NON Banking Financial

Companies regulated and registered under Reserve bank of India (RBI).

Vishesh Capital Pvt. Ltd. Booking’s tryst with excellence in

customer relations began more than 18 years ago. Vishesh Capital Pvt. Ltd. has

emerged as one of the top 3 retail broking houses in India and incorporated in 1994.

Today, Vishesh Capital Pvt. Ltd. has emerged as a premium Indian stock-broking

and wealth management house, with an absolute focus on retail business and a

commitment to provide "Real Value for Money" to all its clients.


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Vishesh Capital

V – Rise

V= Visionary

In a shot span of 18 years since inception, the Vishesh Capital Pvt. Ltd. has emerged as one of the top five retail stock broking houses in India, having membership of BSE, NSE and the two leading Commodity Exchanges in the country i.e. NCDEX & MCX.

The group is started this business as a sub-broker in 1994 with a team of 3. Today the Vishesh Capital Pvt. Ltd. is managed by a team of 1937 direct employees and as a nationwide network comprising of 21 Regional hubs, 124 branches and 6810 sub brokers & business associates. Vishesh Capital Pvt. Ltd. is 100% focused on retail stock broking business unlike any other larger national broking house. The group currently services more than 5.9 thousand retail clients.

Vishesh Capital Pvt. Ltd. habitually generates value

added features without the cost burden being passed on to the clients as they

strongly believe that better understanding of client’s needs and wants is their top


I = Innovation

S = Service

E=Excellence

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priority. Their e-broking facility is one such effort, which gives the client a

platform to access state of the art trading facility at the click of a button.

Mission

“To be recognized and respected as the special choice of investors and clients for

entire gamut of financial services by helping them realizing their dreams of

creating and preserving.”

Vision

“To become a top class financial powerhouse by providing excellent financial

services and innovative products applying best practices with global standards of

technology, expertise, knowledge, solutions and client servicing through a nation-

wide network.”

Incorporated: - 1987

BSE Membership: - 1997

NSE membership: - 1998

Vishesh Capital Pvt. Ltd. Presence:-

Nation- wide network of 21 regional hubs

Presence 124 cities

6800 + sub brokers

5.9 Thousand + clients


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Vishesh Capital Pvt. Ltd. Companies

Vishesh Capital Pvt. Ltd.

Vishesh Capital & Debt market Ltd.

Vishesh Capital Commodities Broking Ltd.

Vishesh Capital Securities Ltd

Vishesh detergent powder


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MAJOR PRODUCTS OF THE COMPANY

Broking

Equity-Derivatives-Commodities-Currencies

Research & Advisory

Teletrading

Portfolio Advisory

Structured Products

Mutual Funds

Life Insurance

General Insurance

Loan against shares

Wealth Management

IPO Advisory


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Portfolio Management Services

Benefits at Vishesh Capital Pvt. Ltd

Low Brokerage in intraday & delivery.

Single Screen customized market-watch for MCX / NCDEX with BSE / NSE.

Research on 25 Agro Commodities, Precious and Base Metals, Energy products

and Polymers.

An array of daily, weekly and special research reports.

Highly skilled analysts with professional industry experience.

Active relationship management desk.

Seminars, workshop & investment campus.

History Of Stock Market

In 12th century, France the courtiers was change

concerned with managing and regulating the debts of agricultural communities on

behalf of the banks. Because these men also traded with debts, they could be called

the first brokers.


http://en.wikipedia.org/wiki/Stockbrokers

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History of the Indian Stock Market

1830 : - Business on corporate stocks and shares in Bank and Cotton

Presses Started in Bombay. Trading list by the end of 1839 got

broader.

1840 : - Recognition from banks and merchants to about half a dozen

brokers.

1850 :- Rapid development of commercial enterprise saw brokerage

business attracting more people into the business.

1860 : - The number of brokers increased 6 to 60.

1862-63 : - Number of brokers increased to about 200 to 250.

1874 : - With the rapidly developing share trading business, brokers used

to gather at a street (now well known as "Dalal Street") for the

Purpose of transacting business.

1875 :- "The Native Share and Stock Brokers' Association" (known

as "The Bombay Stock Exchange") was established in

Bombay.

1880 : - Development of cotton mills industry and set up of many others.

1894 : - Establishment of "The Ahmadabad Share and Stock

Brokers' Association.


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Exchanges in India

1. Bombay Stock Exchange

2. National Stock Exchange of India

3. Indian Commodity Exchange

4. United Stock Exchange of India

5. Multi Commodity Exchange

6. MCX Stock Exchange

7. Over the Counter Exchange of India

8. Inter-connected Stock Exchange of India

9. Madras Stock Exchange

10.Ahmedabad Stock Exchange

11.Bhubaneswar Stock Exchange

12.Cochin Stock Exchange

13.Hyderabad Stock Exchange

14.Calcutta Stock Exchange

15.Delhi Stock Exchange

16.Bangalore Stock Exchange

17.Madhya Pradesh Stock Exchange

18.Jaipur Stock Exchange

19.obul reddy chi stock exchange

20.Magadh Stock Exchange


http://en.wikipedia.org/wiki/Magadh_Stock_Exchange

http://en.wikipedia.org/w/index.php?title=Obul_reddy_chi_stock_exchange&action=edit&redlink=1

http://en.wikipedia.org/wiki/Jaipur_Stock_Exchange

http://en.wikipedia.org/wiki/Madhya_Pradesh_Stock_Exchange

http://en.wikipedia.org/wiki/Bangalore_Stock_Exchange

http://en.wikipedia.org/wiki/Delhi_Stock_Exchange_Association

http://en.wikipedia.org/wiki/Calcutta_Stock_Exchange_Association_Limited

http://en.wikipedia.org/wiki/Hyderabad_Stock_Exchange

http://en.wikipedia.org/wiki/Cochin_Stock_Exchange

http://en.wikipedia.org/wiki/Bhubaneshwar_Stock_Exchange

http://en.wikipedia.org/wiki/Ahmedabad_Stock_Exchange

http://en.wikipedia.org/wiki/Madras_Stock_Exchange

http://en.wikipedia.org/wiki/Inter-connected_Stock_Exchange_of_India

http://en.wikipedia.org/wiki/OTC_Exchange_of_India

http://en.wikipedia.org/wiki/MCX_Stock_Exchange

http://en.wikipedia.org/wiki/Multi_Commodity_Exchange

http://en.wikipedia.org/wiki/United_Stock_Exchange_of_India

http://en.wikipedia.org/w/index.php?title=Indian_Commodity_Exchange&action=edit&redlink=1

http://en.wikipedia.org/wiki/National_Stock_Exchange_of_India

http://en.wikipedia.org/wiki/Bombay_Stock_Exchange

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21.UP Stock Exchange

22.Vadodara Stock Exchange, Vadodara

Establishment of BSE: -

The first ever stock exchange in Asia (established in

1875) and the first in the country to be granted permanent recognition under the

Securities Contract Regulation Act, 1956, BSE Limited has had an interesting rise to

prominence over the past 133 years.

While BSE Limited is now synonymous with Dalal

Street, it was not always so. The first venues of the earliest stock broker meetings in

the 1850s were in rather natural environs - under banyan trees - in front of the Town

Hall, where Horniman Circle is now situated. A decade later, the brokers moved

their venue to another set of foliage, this time under banyan trees at the junction of

Meadows Street and what is now called Mahatma Gandhi Road. As the number of

brokers increased, they had to shift from place to place, but they always overflowed

to the streets. At last, in 1874, the brokers found a permanent place, and one that

they could, quite literally, call their own. The new place was, aptly, called “Dalal

Street.”

In 2002, the name "The Stock Exchange, Mumbai"

was changed to Bombay Stock Exchange. Subsequently on August 19, 2005, the


http://en.wikipedia.org/wiki/Vadodara_Stock_Exchange

http://en.wikipedia.org/wiki/UP_Stock_Exchange

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exchange turned into a corporate entity from an Association of Persons and renamed

as Bombay Stock Exchange Limited.

Establishment of NSE: -

National Stock Exchange (NSE India) was incorporated in

November 1992 as a tax-paying company unlike other stock exchanges in the India.

The National Stock Exchange (NSE India) is the world’s third largest stock

exchange in terms of transaction volumes. NSE India is based out of Mumbai. It is

the 16th largest stock exchange in the world by market capitalization and largest in

India by daily turnover and number of trades, for both equities and derivative

trading.


http://en.wikipedia.org/wiki/Market_capitalization

http://en.wikipedia.org/wiki/List_of_stock_exchanges

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Regulation of Exchanges

The Government of India in 1992 with SEBI Act

1992 being passed by the Indian Parliament. SEBI is headquartered in the business

district of Bandra Kurla Complex in Mumbai, and has Northern, Eastern, Southern

and Western regional offices in New Delhi, Kolkata, Chennai and Ahmedabad

respectively.

The Securities and Exchange Board of India was

established on April 12, 1992 in accordance with the provisions of the Securities

and Exchange Board of India Act, 1992. Initially SEBI was a non statutory body

without any statutory power. However in 1995, the SEBI was given additional

statutory power by the Government of India through an amendment to the Securities

and Exchange Board of India Act 1992. In April, 1998 the SEBI was constituted as

the regulator of capital markets in India under a resolution of the Government of

India.

The SEBI is managed by six members, i.e. by the

chairman who is nominated by central government & two members, i.e. officers of

central ministry, one member from the RBI & the remaining two are nominated by

the central government. The office of SEBI is situated at Mumbai with its regional

offices at Kolkata, Delhi & Chennai.


http://en.wikipedia.org/wiki/Ahmedabad

http://en.wikipedia.org/wiki/Chennai

http://en.wikipedia.org/wiki/Kolkata

http://en.wikipedia.org/wiki/New_Delhi

http://en.wikipedia.org/wiki/Mumbai

http://en.wikipedia.org/wiki/Bandra_Kurla_Complex

http://en.wikipedia.org/wiki/Parliament_of_India

http://en.wikipedia.org/wiki/Government_of_India

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REASON FOR ESTABLISHMENT OF SEBI

The capital market witnessed a tremendous growth during the 1980’s

characterized by increasing participants of public.

This ever expanding investor population led to variety of malpractices on the part

of companies, brokers, investment consultant & others involved in the security

market.

The unfair practices have eroded investor confidence & multiplied investor

grievance.

The government & stock exchanges were rather helpless in redressing investors

problem because of lack of proper panel provisions in the existing legislation.

In the year 1988, the Rao committee suggested on regulation authority for getting

foreign investment in India & for the security purpose, under Mr.Narsimha rao.

So it was decided to set up a SEBI a separate legal Body.


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Introduction of Analysis

Analysis is the process of breaking a complex topic or

substance into smaller parts to gain a better understanding of it. A systematic

examination and evaluation of data or information, by breaking it into its component

parts to uncover their interrelationships. An examination of data and facts to uncover

and understand cause-effect relationships, thus providing basis for problem solving and

decision making. An investigation of the component parts of a whole and their

relations in making up the whole.

Introduction of Stock

The goods kept on the premises of a business or warehouse

and available for sale or distribution. An instrument that signifies an ownership

position in a corporation, and represents a claim on its proportional share in the

corporation's assets and profits. Ownership in the company is determined by the

number of shares a person owns divided by the total number of shares outstanding. For

example, if a company has 1000 shares of stock outstanding and a person owns 50 of

them, then he or she owns 5% of the company. Most stock also provides voting rights,

which give shareholders a proportional vote in certain corporate decisions.


http://www.investorwords.com/1129/corporate.html

http://www.investorwords.com/11466/vote.html

http://www.investorwords.com/4527/shareholder.html

http://www.investorwords.com/5263/voting_right.html

http://www.investorwords.com/3535/outstanding.html

http://www.investorwords.com/4533/shares_outstanding.html

http://www.investorwords.com/11320/total.html

http://www.investorwords.com/3563/own.html

http://www.investorwords.com/14646/person.html

http://www.investorwords.com/4525/share.html

http://www.investorwords.com/10438/number.html

http://www.investorwords.com/992/company.html

http://www.investorwords.com/3880/profit.html

http://www.investorwords.com/273/asset.html

http://www.investorwords.com/1140/corporation.html

http://www.investorwords.com/4525/share.html

http://www.investorwords.com/865/claim.html

http://www.investorwords.com/1140/corporation.html

http://www.investorwords.com/3748/position.html

http://www.investorwords.com/16088/ownership.html

http://www.investorwords.com/2507/instrument.html

http://www.businessdictionary.com/definition/decision-making.html

http://www.businessdictionary.com/definition/problem-solving.html

http://www.businessdictionary.com/definition/provider.html

http://www.businessdictionary.com/definition/relationship.html

http://www.businessdictionary.com/definition/fact.html

http://www.businessdictionary.com/definition/interrelationship.html

http://www.businessdictionary.com/definition/part.html

http://www.businessdictionary.com/definition/component.html

http://www.businessdictionary.com/definition/information.html

http://www.businessdictionary.com/definition/data.html

http://www.businessdictionary.com/definition/evaluation.html

http://www.businessdictionary.com/definition/examination.html

http://www.businessdictionary.com/definition/systematic.html

http://en.wikipedia.org/wiki/Complexity

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INTRODUCTION OF INVESTMENT

Investment is the activity, which is made with the

objective of earning some sort of positive returns in the future. It is the

commitment of the funds to earn future returns and it involves sacrificing the

present investment for the future return.

Every person makes the investment so that the funds he

has increases as keeping cash with himself is not going to help as it will not

generate any returns and also with the passage of time the time value of the

money will come down.

As the inflation will rise the purchasing power of the

money will come down and this will result that the investor who does not invest

will become more poor as he will not have any funds whose value have been

increased. Thus every person whether he is a businessman or a common man will

make the investment with the objective of getting future returns.


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TYPES OF INVESTMENT

There are basically three types of investments from

which the investors can choose. The three kinds of investment have their own risk and

return profile and investor will decide to invest taking into account his own risk

appetite. The main types of investments are: -

Economic investments:-

These investments refer to the net addition to the capital

stock of the society. The capital stock of the society refers to the investments made in

plant, building, land and machinery which are used for the further production of the

goods. This type of investments are very important for the development of the

economy because if the investment are not made in the plant and machinery the

industrial production will come down and which will bring down the overall growth of

the economy.

Financial Investments:-

This type of investments refers to the investments made

in the marketable securities which are of tradable nature. It includes the shares,

debentures, bonds and units of the mutual funds and any other securities which is

covered under the ambit of the Securities Contract Regulations Act definition of the


29


word security. The investments made in the capital market instruments are of vital

important for the country economic growth as the stock market index is called as the

barometer of the economy.

General Investments:-

These investments refer to the investments made by the

common investor in his own small assets like the television, car, house, motor cycle.

These types of investments are termed as the household investments. Such types of

investment are important for the domestic economy of the country. When the demand

in the domestic economy boost the overall productions and the manufacturing in the

industrial sectors also goes up and this causes rise in the employment activity and thus

boost up the GDP growth rate of the country. The organizations like the Central

Statistical Organization (CSO) regularly takes the study of the investments made in the

household sector which shows that the level of consumptions in the domestic markets.


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CHARACTERISICS OF INVESTMENT

Certain features characterize all investments. The following are the main characteristic

features if investments: -

1. Return: -

All investments are characterized by the expectation of a return. In fact, investments

are made with the primary objective of deriving a return. The return may be received in

the form of yield plus capital appreciation. The difference between the sale price & the

purchase price is capital appreciation. The dividend or interest received from the

investment is the yield. Different types of investments promise different rates of return.

The return from an investment depends upon the nature of investment, the maturity

period & a host of other factors.

2. Risk: -

Risk is inherent in any investment. The risk may relate to loss of capital, delay in

repayment of capital, nonpayment of interest, or variability of returns. While some

investments like government securities & bank deposits are almost risk less, others are

more risky. The risk of an investment depends on the following factors.


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The longer the maturity period, the longer is the risk.

The lower the credit worthiness of the borrower, the higher is the risk .

The risk varies with the nature of investment. Investments in ownership securities like

equity share carry higher risk compared to investments in debt instrument like

debentures & bonds.

3. Safety: -

The safety of an investment implies the certainty of

return of capital without loss of money or time. Safety is another features which

an investors desire for his investments. Every investor expects to get back his

capital on maturity without loss & without delay.

4. Liquidity: -

An investment, which is easily saleable, o/r marketable

without loss of money & without loss of time is said to possess liquidity. Some

investments like company deposits, bank deposits, P.O. deposits, NSC, NSS etc.

are not marketable. Some investment instrument like preference shares &

debentures are marketable, but there are no buyers in many cases & hence their

liquidity is negligible. Equity shares of companies listed on stock exchanges are

easily marketable through the stock exchanges.

An investor generally prefers liquidity for his

investment, safety of his funds, a good return with minimum risk or minimization

of risk & maximization of return.


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IMPORTANCE

In the current situation, investment is becomes necessary for everyone & it is important

& useful in the following ways:

1. Retirement planning: -

Investment decision has become significant as people

retire between the ages of 55 & 60. Also, the trend shows longer life expectancy. The

earning from employment should, therefore, be calculated in such a manner that a

portion should be put away as a savings. Savings by themselves do not increase wealth;

these must be invested in such a way that the principal & income will be adequate for a

greater number of retirement years. Increase in working population, proper planning

for life span & longevity have ensured the need for balanced investments.

2. Increasing rates of taxation: -

Taxation is one of the crucial factors in any country, which

introduce an element of compulsion, in a person’s saving. In the form investments,

there are various forms of saving outlets in our country, which help in bringing down

the tax level by offering deductions in personal income.


33


For examples: -

Unit linked insurance plan,

Life insurance,

National saving certificates,

Development bonds,

Post office cumulative deposit schemes etc.

3. Rates of interest: -

It is also an important aspect for sound investment plan. It

varies between investment & another. This may vary between risky & safe investment,

they may also differ due different benefits schemes offered by the investments. These

aspects must be considered before actually investing. The investor has to include in his

portfolio several kinds of investments stability of interest is as important as receiving

high rate of interest.

4. Income: -

For increasing in employment opportunities in India.,

investment decisions have assumed importance. After independence with the stage of

development in the country a number of organization & services came into being.

For example: -

The Indian administrative services,

Banking recruitment services,

Expansion in private corporate sector,

Public sector enterprises,


34


Establishing of financial institutions, tourism, hotels, and education.

More avenues for investment have led to the ability & willingness of working people

to save & invest their funds.

5. Investment channels: -

The growth & development of country leading to greater

economic activity has led to the introduction of a vast array of investment outlays.

Apart from putting aside saving in savings banks where interest is low, investor have

the choice of a variety of instruments. The question to reason out is which is the most

suitable channel? Which media will give a balanced growth & stability of return? The

investor in his choice of investment will give a balanced growth & stability of return?

The investor in his choice of investment will have try & achieve a proper mix between

high rates of return to reap the benefits of both.

For example: -

Fixed deposit in corporate sector

Unit trust scheme


35


INVESTMENTS AVENUES:-

There are various investments avenues provided by a country

to its people depending upon the development of the country itself. The developed

countries like the USA and the Japan provide variety of investments as compared to

our country.

In India before the post liberalization era there were limited

investments avenues available to the people in which they could invest. With the

opening up of the economy the number of investments avenues have also increased and

the quality of the investments have also improved due to the use of the professional

activity of the players involved in this segment. Today investment is no longer a

process of trial and error and it has become a systematized process, which involves the

use of the professional investment solution provider to play a greater role in the

investment process.

Earlier the investments were made without any analysis as the

complexity involved the investment process were not there and also there was no


36


availability of variety of instruments. But today as the number of investment options

have increased and with the variety of investments options available the investor has to

take decision according to his own risk and return analysis.

An investor has a wide array of Investment Avenue. They are as under:


Investment Avenue

Equity

Land

Deposits

DerivativesInsuran

ce

Real Estate

Tax Sheltered

Mutual Fund

Bonds

37


On the above diagram the each one investment are understand in details as under,

which are as following.

Insurance

In a broad sense, life insurance may be viewed as an investment.

Insurance premiums represent the sacrifice & the assured sum the benefit. In India, the

important types of insurance policies are:

Health Insurance

General Insurance

A. Fire Insurance

B. Motor Insurance

C. Marine cargo

Life insurance

A. Endowment assurance policy

B. Money back policy

C. Whole life policy

D. Term assurance policy

Deposit


38


It is just like fixed income securities earn a fixed return. However,

unlike fixed income securities, deposits are negotiable or transferable. The important

types of deposits in India are:

A. Bank deposits

B. Company deposits

C. Postal deposits

Real Estate

For the bulk of the investors the most important asset in their

portfolio is a residential house. In addition to a residential house, the more affluent

investors are likely to be interested in the following types of real estate:

A. Agricultural land

B. Semi-urban land

Tax sheltered

It provides benefits to those who participate in them. The most important tax sheltered

saving schemes in India is:

A. Employee provident fund scheme

B. Public provident fund schemes

C. National saving certificate


39


Classification of Investment in stock market

EQUITY MARKET

Types of Equity Instruments

Ordinary Shares

Ordinary shareholders are the owners of a company, and each share entitles the holder

to ownership privileges such as dividends declared by the company and voting rights at

meetings. Losses as well as profits are shared by the equity shareholders. Without any

guaranteed income or security, equity shares are a risk investment, bringing with them the

potential for capital appreciation in return for the additional risk that the investor

undertakes in comparison to debt instruments with guaranteed income.

Preference Shares

Unlike equity shares, preference shares entitle the holder to dividends at fixed rates subject

to availability of profits after tax. If preference shares are cumulative, unpaid dividends


40


for years of inadequate profits are paid in subsequent years. Preference shares do not

entitle the holder to ownership privileges such as voting rights at meetings.

Equity Warrants

These are long term rights that offer holders the right to purchase equity shares in a

company at a fixed price (usually higher than the current market price) within a specified

period. Warrants are in the nature of options on stocks.

Classification in terms of Market Capitalisation

Market capitalization is equivalent to the current value of a

company i.e. current market price per share times the number of outstanding shares. There

are Large Capitalisation companies, Mid-Cap companies and Small-Cap companies.

Different schemes of a fund may define their fund objective as a preference for Large or

Mid or Small-Cap companies' shares. Large Cap shares are more liquid and hence easily

tradable. Mid or Small Cap shares may be thought of as having greater growth

potential.

Large Capitalization: -

A term used by the investment community to describe

companies with a market capitalization value more than 10 billion. Large cap is an

abbreviation of the term “large market capitalization.” Market capitalization is

calculated by multiplying the number of a company's shares outstanding by its stock

price per share.

Meddle Capitalization: -


41


A well established and financially sound company with a

market capitalization between Rs. 1000 cr. And Rs. 5000 cr., which is calculated by

multiplying the number of a company’s shares outstanding by its stock price. Mid cap

is an abbreviation for the term “middle capitalization”.

Small Capitalization: -

It refers to stocks with relatively small market

capitalization. The definition of small cap can vary among brokerages, but it is a

company with market capitalization of less than Rs. 1000.

Commodities

The modern commodity markets have their roots in the trading of

agricultural products. While wheat and corn, cattle and pigs, were widely traded using

standard instruments in the 19th century in the United States.

A commodity is a basic good representing a monetary value.

Commodities are most often used as inputs in the production of other goods or

services. With the advent of new online exchange, commodities can now be traded in

futures markets. When they are traded on an exchange,

Commodities must also meet specified minimum standards known as basic grade.

Types of Commodities

Precious Metals : Gold and Silver

Base Metals : Copper, Zinc , Steel and Aluminum

Energy : Crude Oil, Brent Crude and Natural Gas


42


Pulses : Chana , Urad and Tuar

Spices : Black Pepper, Jeera, Turmeric , Red Chili

Others : Guar Complex, Soya, Wheat and Sugar

Commodity trading is an interesting option for those who

wish to diversify from the traditional options like shares, bonds and portfolios. The

Government has made almost all commodities entitled for futures trading. Three multi

commodity exchanges have been set up in the country to facilitate this for the retail

investors. The three national exchanges in India are:

Multi Commodity Exchange

National Commodity and

National Multi-Commodity Exchange


43


Debt Market

The debt market is the market where debt instruments are

traded. Debt instruments are assets that require a fixed payment to the holder, usually

with interest. Examples of debt instruments include bonds (government & corporate)

and mortgages.

The equity market is the market for trading equity

instruments. Stocks are securities that are a claim on the earnings and assets of a

corporation. An example of an equity instrument would be common stock shares, such

as those traded on the National Stock Exchange.

Instruments in the Indian Debt Market

Commercial Paper


44


Commercial paper is a short term, unsecured instrument

issued by corporate bodies (public & private) to meet short-term working capital

requirements. Maturity varies between 3 months and 1 year. This instrument can be

issued to individuals, banks, companies and other corporate bodies registered or

incorporated in India.

Debentures

The debentures are usually issued by manufacturing companies with

physical assets, as secured instruments, in the form of certificates They are assigned a

credit rating by rating agencies. Trading in debentures is generally based on the current

yield and market values are based on yield-to-maturity. All publicly issued debentures are

listed on exchanges.

Floating Rate Bonds

These are short to medium term interest bearing instruments

issued by financial intermediaries and corporate. The typical maturity of these bonds is

3 to 5 years. FRBs issued by financial institutions are generally unsecured while those

from private corporate are secured. The FRBs are pegged to different reference rates

such as T-bills or bank deposit rates. The FRBs issued by the Government of India are

in the form of Stock Certificates or issued by credit to SGL accounts maintained by

the RBI.

Government Securities


45


These are medium to long term interest-bearing obligations issued

through the RBI by the Government of India and state governments. The RBI decides the

cut-off coupon on the basis of bids received during auctions. There are issues where the

rate is pre-specified and the investor only bids for the quantity. In most cases the

coupon is paid semi-annually with bullet redemption features.

Bonds

Most of the institutional bonds are in the form of promissory

notes transferable by endorsement and delivery. These are negotiable certificates, issued

by the Financial Institutions such as the IDBI/ICICI/ IFCI or by commercial banks.

These instruments have been issued both as regular income bonds and as discounted

long-term instruments (deep discount bonds).

Public Sector Undertakings Bonds

PSU Bonds are medium and long term obligations issued by

public sector companies in which the government share holding is generally greater

than 51%. Some PSU bonds carry tax exemptions. The minimum maturity is 5 years

for taxable bonds and 7 years for tax-free bonds. PSU bonds are generally not guaranteed

by the government and are in the form of promissory notes transferable by endorsement

and delivery. PSU bonds in electronic form (demat) are eligible for repo transactions.

Zero Interest Bonds


46


Zero interest bonds carry no periodic interest payments and they

are sold at a huge discount to the face value. This kind of Bond is sometimes

convertible into equity shares.

Mutual Fund

An investor can participant in various schemes floated

by mutual fund instead of buying equity shares. In mutual funds invest in equity shares

& fixed income securities. An investment vehicle that is made up of a pool of funds

collected from many investors for the purpose of investing in securities such as stocks,

bonds, money market instruments and similar assets. Mutual funds are operated by

money managers, who invest the fund's capital and attempt to produce capital gains

and income for the fund's investors.

Portfolio

Meaning of portfolio: -

The term portfolio refers to any collection of financial assets

such as stocks, bonds and cash. Portfolios may be held by individual investors and/or

managed by financial professionals, banks and other financial institutions. It is a

generally accepted principle that a portfolio is designed according to the investor's risk

tolerance, time frame and investment objectives.


http://en.wikipedia.org/wiki/Bond_(finance)

http://en.wikipedia.org/wiki/Stock

47


A combination of securities with different risk & return

characteristics will constitute the portfolio of the investor. Thus, a portfolio is the

combination of various assets and/or instruments of investments. The combination may

have different features of risk & return, separate from those of the components. The

portfolio is also built up out of the wealth or income of the investor over a period of

time, with a view to suit his risk and return preference to that of the portfolio that he

holds.

Types of portfolio:

In portfolio Design, we are considering only two types of portfolio. They are as follow:

1. Random Portfolio

2. Sector Portfolio

Random portfolio

Random portfolio consists of the scripts that are

randomly selected by the investor by its own knowledge and preference of the

stocks. Here there is no analysis is done of the script, they are selected on the tips

and buts received by the investors from the external sources.

Sector specific portfolio

Sector specific portfolio includes securities of those

companies which are in the same business. Sector portfolios are very useful when

there is a particular sector which is doing very good and has a bright future a


48


head. Sector portfolio has the securities of those companies that engage in same

kind of business.

e.g. In late 1990’s sector that was providing the highest return was information

technology. Investors who have invested their money in these securities had

earned very high return.

Hypotheses

Hypotheses 1

Ho: People are investing in share market.

H1: People are not investing in share market.

People invest in stock market

Particular Yes No Total


49


18-25years 12 6 1826-35years 14 8 22

36years & above 6 4 10

Total 32 18 50

Testing of Hypothesis


fo fe ( fo – fe)2/ fe

12 11.52 0.0214 14.08 0.000456 6.4 0.0256 6.48 0.03568 7.92 0.00084 3.6 0.11

0.19185

χ2

=∑( f o−f e )

2

f ewhere : f o= frequency of observed values

f e= frequency of expected values k=number of categoriesc = number of parameters estimated from the sample data

50


Degrees of freedom= (no. of rows-1) (no. of columns-1)

= (6-1) × (2-1)

= 5

Significance level= 0.05

Referring to the table of Chi-square test, the value 11.071 is obtained which is

higher than the calculated value.

As can be seen 2 tab ¿2 cal i.e. 11.071 ¿ 0.19185

Thus, Ho is accepted. Alternate Hypothesis is rejected.

Here on above hypothesis, we accept Ho hypothesis

which means people are investing in stock market so we reject the alternate

hypothesis. According to my research people are investing in stock market so

alternate hypothesis rejected which means according to null hypothesis’s

interpretation is the true is rejected & wrong is accepted. So that the research says

that people are investing in the stock market.

Hypotheses 2

Ho: People are investing in Government security.

H1: People are not investing in Government security.


51


Preference for Investment

Observed N Expected N Residual

Government 26 25.0 1.0

Private 24 25.0 -1.0

Total 50

Referring to the table of Chi-square test, the value 0.080 is obtained which is

higher than the calculated value.

As can be seen 2 tab ¿2 cal i.e. 0.080 < 0.777

Thus, Ho is rejected. Alternate Hypothesis is accepted.

Here on above hypothesis, we reject Ho hypothesis which

means People are investing in government security. So we accept the alternate


Test Statistics

Preference for Investment

Chi-Square .080a

Df 1

Asymp. Sig. .777

a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 25.0.

52


hypothesis. According to my research People are investing in government

security. So alternate hypothesis accepted which means according to alternate

hypothesis’s interpretation is the wrong is accepted & true is rejected. So that the

research says that people are not investing in government security.

Questionnaire Analysis


53


As my analysis of 50 questionnaires, we make an analysis of different questions as

under.

People are invest in different area

Common Investment

Fix D

epos

it

Post

Office

Nation

al sa

ving

certi

ficate

Real E

state

Insu

rance

Mut

ual F

und

010203040 34

19

4 7

27

11

Investment of people

Stock Market Investment


ParticularInvestment of

peopleFix Deposit 34Post Office 19

National saving certificate 4

Real Estate 7 Insurance 27

Mutual Fund 11

54


Gold Silver Equity Market0

5

10

15

20

25

30

35

1214

29

Investment of people

INTERPRETATION:

As above the Common investment graph, we can analyze

that most of people have trust to invest in fixed deposit because it gives secured return.

And after that, people are select insurance to investment. Thus post office, mutual fund,

real estate, national saving certificate are in the descending forms. When we talk about

investment in stock market, research says that people those are investing in stock

market they are investing in equity more than silver & gold as my analysis.

People are invest in different sector

Particular Preference of


ParticularInvestment of

people

Gold 12

Silver 14

Equity Market 29

55


people

Government 26

Private 24

Total 50

Government Private23

23.5

24

24.5

25

25.5

26

26.526

24

Prefrence of people

INTERPRETATION: As the above graph, we conclude that out of 50 people, 26

prefer the government sector for investment. Because they believe that government

sector are secured & trustable for investment. The government investment is also safer

so people give first preference to it. Those people who are trading in intraday they don’t

care about they are playing in government or private! There is also another group of

society; they believe that private investment is better & equivalent as government

investment, because they believe that after purchasing of share it is not matter that these

shares are SBI or TCS because the fluctuation of share can be possible in both. So

government is also unable for it with the acceptance of government stockholding.

People are invest in stock market


56


Yes No0

5

10

15

20

25

30

35 32

18

Interested in stock market

INTERPRETATION:

My survey of 50 samples says that 32 people are investing

in stock market when 18 people are not investing in share market which is exhibiting

in the graph. This indicates that around 64% of people are investing in stock market by

directly or indirectly in long term or in speculation. When there is also one group of

society around 36% people, they don’t want to invest in stock market because of

volatility of market, family restriction, some people also got huge loss in past, due to

risk, no proper guidance etc. These are basic reason due to which they don’t have trust

in stock market.

People are not invest in stock market

Reason for not prefer to invest in stock market


Particular Yes No Total

Invest in stock market 32 18 50

57


Reason for not investing in share market No. of PeopleRisk concern 6

volatility of market 3No proper guidance 4Restriction of family 2

Investment in other sources 3

Total 18

Risk concern

volatility of market

No proper guidance

Restriction of family

Investment in other sorces

01234567

No. of People

No. of People

INTERPRETATION:

People are not investing in share market because they believing some

reason due to risk & uncertainty of market, no proper guidance, restriction of

family & they also invest in other sources. When I met this people for my research

then I knew that some people are not investing because of they got huge loss in

past in stock market. I got reason that some investor victim of improper advise.

Highest numbers of people are not investing in stock market due to risk concern.

If proper guidance is available, people want to invest or not

Particular No. of people


58


Yes 12

No 6

Total 18

Yes No0

2

4

6

8

10

12

14

NO. OF PEOPLE

NO. OF PEOPLE

INTERPRETATION:

In the research I knew that due to lack of proper advise people

are not investing in market, so I ask them this question for their for knowing scope of

them to invest in stock market. With the help of this I knew that 12 people out of 18

people who denying for the investment in stock market when 6 people are ready that if

they will get proper advise then that they will invest here.

Age group wise numbers of trading years

Age Group No. people 0 to 4 115 to 8 8


59


9 to 12 513 to 16 317 to 20 220 and > 3

Total 32

0 to 4 5 to 8 9 to 12 13 to 16

17 to 20

20 and >

0

2

4

6

8

10

12 11

8

5

32

3

No. people

INTERPRETATION: The highest numbers of people are investing in last 4

years which is 11 persons. The second number comes between 5 years to 8 years.

And in my survey only I can get 3 people who invest from last 20 or more than

20years, in this include broker & old age person but some people are at the age of

40-45 still they are investing in last 10 to 15 years only. So this indicates that in

the age group of 30-35 with the comparison of 40-45 years they all are investing

from same number of year. This data gives unexpected result with those who

investing from last 10years & their age is around thirty.

Method is followed by people for trading


Particular Online Offline Both Total

Investors' Trade in 15 8 9 32

60


Online Offline Both0

2

4

6

8

10

12

14

16 15

89

Investers' Trade in

INTERPRETATION:

As the above graph we can see that online trading is most

preferable by people in the stock market. 15 people are follow online trading, 8 people

are follow offline trading where 9 people are follow both method of trading. It has

been proved that online trading is accurate because we can see on this terminal. While

offline trading makes misunderstanding sometimes.

Risky methods for trading

Particular Risky

Online 14


61


Offline 18

Total 32

Online Offline0

5

10

15

20

14

18

Risk

INTERPRETATION:

As the above graph, we can conclude that 18 people

believe that offline trading is risky while other believes that online trading is risky.

Because of fluctuation on terminal those people who invest in stock market, they think

that online trading risky. But this risk is more psychologically. Some people think that

offline trading is risky because sometime it happens that broker move away from the

terminal at that time client make fix deal with broker with his beneficial price and thus

broker make loss. According to their different perception by different people they

believe their own advantage.

Various ways of dealing in stock market


ParticularMethod of Investment

Intraday 10

Delivery 18

Derivative 4

Total 32

62


Intraday Dilivery Derivative0

2

4

6

8

10

12

14

16

18

20

10

18

4

Method of Investment

INTERPRETATION:

As the above graph, we can conclude that out of total 32

investor, 18 people use delivery for trading while 10 people use intraday and other use

derivative. So we can say that delivery base method is mostly preferable by people. Due

to uncertainty of risk in intraday so people are preferable deliveries. Some people

playing intraday but at the end of day they make loss so they go to the delivery base.

Different instruments of investment in stock market

ParticularInvestment by

People


63


Commodity 10

Equity 18

Currency 3

Others 1

Total 32

Commodity Equity Currency Others0

2

4

6

8

10

12

14

16

18

20

10

18

3

1

Investment by People

INERPRETATION: Those people who are investing in stock market, the highest

number of people investing in equity with 18 people out of 32 people. Equity is first

preference of investors in stock market then commodity, Currency respectively.

Time gap of trading in stock market

Particular Yes


64


Daily 10

Weekly 4

Monthly 6

Long Term 12

Total 32

Daily Weekly Monthly Long Term0

2

4

6

8

10

12

14

10

4

6

12

Yes

INERPRETATION: Most of people prefer to invest in long term base even brokers

also. This is also first preference of brokers because against the comparison with

intraday where people also can go in heavy loss in one day. Long term is more secure

than daily intraday transaction. Some people invest here from their income like 5 to

100% as per their occupassion like job, brokers on the base of it. Brokers speculate

daily where job person transact weekly, monthly or long term.

Brokerage affect in investment decision


65


Particular No. of people

Yes 21

No 11

Total 32

Yes No0

5

10

15

20

25

No. of people

No. of people

INERPRETATION:

There are large number of people are saying that they think about

brokerage before investing. There are also some people they said that they don’t think

about the brokerage whatever they should pay for transaction because they think that

their money should not be lost. For this reason, proper advise for investment they are

ready for the payment of high brokerage.

Findings


66


As my research analysis, I reach at some findings which are as below,

As my project analysis I find in the market that there are various type of

investment prevailing like Fixed Deposit, insurance, Mutual Fund, Post Office,

Real Estate, Land, Gold, Silver, Bonds & equity.

Above all investment,

I find that there are risk & return in most of the

investments. Those people who are investing in stock market they also invest in

common investment like F.D., insurance, post office, NSC etc. because

government investment are safer, securable and there is less chance in loss of

money.

Because of various types of risk & fluctuation in stock

market most of people go through delivery & people who want to take risk they all

are go through intraday & delivery.

After understanding the various concepts about what are

the investments option and what are the risks associated with the various

investment avenues.

If one does not have enough knowledge, expertise &

analytical capabilities then one should avoid going for direct equity investment as

the chances of loss increases. And the other very important aspect is the regular

monitoring of the portfolio and reviewing is also an important aspect that one

needs to pay close attention to.

Those people who are investing in long term they have good

chance of getting higher return this takes huge time but when investor gets return,


67


it is unexpected! I see lots of higher return example within these training days.

When there are another people also there they highly lose their money in log

term! Some people have no concern with brokerage. They think that they will

satisfy with low return but they don’t want to lose their saving. So that they are

ready for paying high brokerage for their investment advisor.

Insurance is another good option for investment by people

because after end of the premium people can get their money back & they also

take the advantage of income tax exemption. So they give preference for it.

The share market is very lucrative but when you make your

right decision for investment so that we can make good return therefore we can

say that “future can be find in past”.

Most of the people are aware about equity market but not

about debt market. Equity market in spite of its fluctuation also, attracts numerous

people to invest in it. People prefer to invest in equity market due to high returns

in short time because people are ready to take risk for their investments. On the

other hand debt market do have fixed but low rate of returns. This is also a

drawback faced by debt market. There are people who want to invest in fixed

returns investments. But due to lack of knowledge they do not know about all the

options like debentures, bonds are available.

The main thing is the rate of brokerage people are paying

on every transaction and the services provided to them. But people who generally


68


deals in delivery period transactions they are not much concerned about brokerage

rate. Because they only want satisfied return, they don’t want to lose money. As I

see in market, delivery brokerage is higher than the intraday transaction.

Those people who want to invest in intraday than fluctuate

market or fluctuate share is more beneficial for them. It suggests that the customers are

ready to invest money in equity and commodity market which is more risky than

mutual fund.

So we can easily say that the investment in equity market is

subject to market risk and anyone having long-term investment horizon should only

enter into equity market. Most of customer is mostly risk taker and price.

Conclusion


69


On the base of my research I reach at some conclusion that

there are various avenues of investment. The investors can invest in fixed deposit,

post office, insurance, real estate, land, mutual fund, government private bonds,

debentures, commodity and equity.

My research says that people give first preference in fixed

deposit of bank due to security and they secondly common investment is insurance

including tax benefit. Those people are investing in stock market they are deal

with intraday and delivery base like long term. For my study when I interact with

brokers, they say that investment in stock market is good for long term so they

also refer to go for long term investments.

There is compulsory return in debt market but due to getting

higher return in minimum time period people are investing in equity market.

People are only going there for quick earning but there is an equivalent chance of

loss of earning. And brokerage charge is standing also for losing here.

The best option for investment is long term investment. The

return in the debt market is fixing but they are not calling the holder of the

company when equity holder are called owner of the company and they have

voting right. Therefore equity market induces to invest there.


70


The good way for investment is to set the portfolio by the

experience broker. Investors also can invest in mutual fund but design portfolio

according to wish of investors is more acceptable than investing in mutual fund.

The government of India also should promote to debt market because there is

enough chances of getting continues return.

This research really makes big understanding of the what the

factors affect the people for investment.

There are various investment avenues, which highlights the

phenomenal growth experienced recently, in line with the country's improving

economic fundamentals. The study analysis the investment of the individual and

the various Risks and returns calculation is made in various avenues.


71


Learning

My purpose of internship at the company was to know the

actual market prevailing in the economy. To learnt the different ups and downs of

the market for various reasons. When I was about to finish my training, a

responsibility assign to me. It’s for giving guidance to new trainees. I was

supposed to teach them what my mentor taught me. I gave them direction

according to my knowledge and my experience. It was great experience for me to

do. And in the same time it was very difficult for me. So it also increases my

Knowledge during this period. So it was very good experience I learnt during my

training in Vishesh capital. It was great time with them.

I learnt many things but still there many things which I could not

learn because of short span of time. And I think I myself have done well there and

tried to learn different things. And further I would like to work with Vishesh

capital to learn more things. I learn how intraday, delivery transaction is done,

how deal with customer, what market situation is best for transaction in intraday.


72


Questionnaire

Based On research of

“Analysis of Investment in Stock Market” Personal details:

1. In which area do you invest?

Fix deposit Real Estate

Post office Land

National savings certificate Insurance

Gold Bonds

Silver Mutual Fund

Equity Other

2. In what sector do you prefer most for investment?

Government Private

3. Do you invest in share market?

Yes No


A) Why do you not prefer to invest in the share market?

Risk Concern Restriction of family

No proper guidance Investment in other sources

Volatility of market any other reason (Please

Specify) ______________

B) If proper guidelines provided, would you like it to investment in stock market?

Yes No

Name:

Age:

Address:

Occupation:

Contact:

73


IF YES,

4. Since how many years you have been investing in stock market?

___________________________________________________

5. How do you trade in stock market?

Online Offline Both

6. In what type of trade in stock market do you think is risky?

Online Offline

7. What % of earning do you invest in stock market?

_______________________________________________________

8. What type of method for investment do you follow?

Intraday Delivery Derivatives

9. In what of type of market instrument do you invest?

Commodity Currency

Equity Other

10. How often do you trade?

Daily Weekly

Monthly Long term

11. What % of brokerage on investment do you pay?

Intraday _______%

Delivery _______ %

Derivatives_______ %

12. Does brokerage affect your decision?

Yes No

13. Recommendation

______________________________________________________

______________________________________________________


74


Bibliography

www.visheshcap.com

www.nseindia.com

www.bseindia.com

www.sebi.gov.in

www.wikipedia.org

www.investopedia.com


http://www.investopedia.com/

http://www.wikipedia.org/

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Akash Brahmbhatt