COMMODITY FUTURE

8/7/2019 COMMODITY FUTURE

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INVESTORPERCEPTION ABOUT

COMMODITYMARKET IN BARODA

GUIDED BY:-PROF. DIPAK GAYWALA

PREPARED BY:-HITESH VARMA(21)

ANKIT SHAH(03)


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Objective of the Study

To study the perception of investors about commoditymarket

Sub Objectives:

1. To study the growth of commodity markets

2. To find out the investment pattern of investors incommodity market on the basis of income, age,

occupation, etc


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Research MethodologySample Design

The total population for the study is 3,00,000 In this study convenient random sampling method is used to

select the respondents. The sample size is 150 respondents.

Source of Data The various sources of data are

Primary Sources, which includes questionnaire.

Secondary data which includes books and internet etc.

Tools for Data Collection

The questionnaire is the tool used for data collection.


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What is a commodity?Any product that can be used for commerce or

an article of commerce which is traded on an

authorized commodity exchange is known as

commodity

Commodity includes all kinds of goods. FCRA

defines goods as every kind of moveable

property other than actionable claims, moneyand securities.


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Commodity Futures

Trading The commodity futures trading, consists of a futures contract,

which is a legally binding agreement providing for the delivery

of the underlying asset or financial entities at specific date in

the future.

Like all future contracts, commodity futures are agreements to

buy or sell something at a later date and at a price that has

been fixed earlier by the buyer and seller.

So, for example, a cotton farmer may agree to sell his output toa textiles company many months before the crop is ready for

actual harvesting.


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FMCFMC

CommodityCommodity ExchangesExchanges

NationalNational

exchangesexchanges

RegionalRegional

exchangesexchanges

NCDEXNCDEX NMCENMCE MCXMCX NBOTNBOT 20 Other Regional Exchanges20 Other Regional Exchanges

Structure of indian commodity

future


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AGE PROFILE

Age Group No. of

Respondents

Percentage

20-30 years 65 43%

30-40 years 45 30%

40-50 years 25 17%

50 years and

above

15 10%

43 %

30 %

17%

10 %

Pie Chart Showing Age Profile Of

The Respondents

20-30 Years

30-40 Years

40-50 Years

50 Year and above

FindingsFrom the above table and chart, it can be seen that 43% of the respondents were in the age

group of 20-30 years, 30% were in the age group of 30-40 years, and 17% were in the age group

of 40-50 years and 10% in the age group of 50 years and above.

Interpretation

It can be concluded that mainly the young people have invested commodity futures.


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OCCUPATION PROFILEOccupation No. of

Responde

nts

Percenta

ge

Government Employee 5 3%

Private Sector

Employee

45 30%

Self-Employee 25 17%

Businessmen 50 33%

Commodity Futures

Advisor

25 17%

Others 0 0%

FindingsFrom the above table and chart, it can be seen that 3% of the respondents were government

employees, 30% were private sector employee, 17% were Self-Employed and 33% were

businessmen, 17% were Commodity futures advisors.

Interpretation

It can be concluded that mainly businessmen and private sector employees invest incommodities.


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INCOME PROFILEIncome Group No. of

Responden

ts

Percentag

e

Below Rs. 4

Lakh

55 37%

Rs. 4 10 Lakh 90 60%

Rs. 10 25

Lakh

5 3%

Above Rs. 25

Lakh

0 0%

FindingsFrom the above table and chart, it can be seen that 37% of the respondents were in the

income group of below Rs. 4 lakh, 60% were in the income group of Rs. 4-10 lakh, and 3%

were in the income group of Rs. 10-25 lakh.

InterpretationIt can be concluded that most of the people who have invested commodity futures are in

the income group of Rs.4-10 lakhs.


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What is the amountyou have

invested in commodity futures?Amount(Rupees

)

No. Of

Responde

nts

Percentag

e

Rs. 2 lakh 40 27%

Rs. 2-3 lakh 75 50%

Rs. 3-5 lakh 30 20%

Above Rs.5lakh 5 3%

FindingsIt can be seen that out of the investors, 27% of them had invested Rs. 2 lakhs, 50% of them

had invested between Rs. 2-3 lakhs, 20% had invested between Rs. 3-5 lakhs and 3% had

invested above Rs. 5 lakhs.

InterpretationIt can be concluded that most of the investors had invested between Rs. 2-3 lakhs in

commodity futures.


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Whattype oftrade do you

prefer the most?Particulars No. Of

Responden

ts

Percenta

ge

Short Term

Positions

75 50%

Mediumterm 45 30%

Longterm

positions

30 20%

FindingsIt can be seen that out of the investors in commodity futures, 50% of them prefer short-

term positions, 30% of them preferred medium term positions and 20% preferred long-term

positions.

Interpretation

It can be concluded that most of the investors trading in commodity futures prefer short-term positions.


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Do you thinkthere is future in

commodity future trading, in the

present economy?Particulars No. Of

Respondents

Percenta

ge

Yes 110 73%

No 25 17%

Cant say 15 10%

FindingsIt can be seen that, 73% of the investors feel that there is future in commodity futures

trading in the present economy, 17% of them feel that there is no future in commodity futures,

10% of the investors were unable to come to a conclusion.

InterpretationsIt can be concluded that most of the investors feel that there is future in commodity future

trading in the present economy.


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Do you, as a client use

Fundamental/Technical Analysis while giving

an order?Particulars No. Of

Respondent

s

Percentage

Yes 100 67%

No 50 33%

FindingsFrom the above table and chart, it can be seen that 76% of the investors use

Fundamental/technical Analysis while giving an order to trade in commodity futures, and 24% do

not any analysis tools.

InterpretationIt can be concluded that most of the investors use Fundamental/ Technical Analysis when

giving an order while trading in commodity futures.


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Whichtype oftrader you are?

Particulars No. Of

Responden

ts

Percentage

Hedgers 65 43%

Speculator 30 20%

Arbitrager 55 37%

FindingsFrom the above table and chart, it can be seen that most of respondents are hedger and

arbitrager

InterpretationIt can be concluded that most of the respondents are hedgers


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FINDINGS

Person between age of 20-40 years are more active player inthe commodity trading and 10-30 % of their income are

invested in market. Most of them believe that return derived

from commodity are good and reasonable.

It has been seen that about 67% investor are doingfundamental technical analyses.

The commodity futures markets are experiencing a good

growth in the recent past.

This can be emphasized by the fact that the trading volume ofmost commodities is increasing.


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CONCLUSION Now a days investor become more careful in investment with

considering the factor like global economy, availability of

commodity etc

In the trading system people consider above factor for investment

so we can conclude that investor are more moving towards theexchange traded market.

It can be concluded that one can use commodity futures for the

hedging purposes rather than for the speculative

This can be emphasized by the fact that there has been an increasing

trend in the volume traded in most of the commodities. Thus,commodity futures are a growing market.

from all the above conclusions of it can be concluded, commodity

futures can be used as a risk reduction and a sound investment

instrument


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THANK YOU

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COMMODITY FUTURE