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V.M.

PATEL COLLEGE OF MANAGEMENT STUDIES


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Today India has become a “globalize country”. The process of globalization has
very highly affected. Corporate world of both, India and exotic corporate world means
today’s neoteric business world. This corporate world plays a decisive role in globalization.

This corporate world is now becoming more and more competitive. Regarding
this competition business houses need more professionalized people for their managerial
work. Highly professionalized people come from business school. Business school offers
training for all business aspects. So from this angle our Ganpat University has granted
B.B.A. program.

Theoretical knowledge is not enough. After study student has to go practical


world. At that time they have difficulty in practical works. This B.B.A. program provides
an opportunity for this type of practical knowledge.

The rationale behind visiting the company and preparing the Project Report is to
study the INVESTOR INVESTMENT BEHAVIOR IN STOCK
MARKET&SUGGESTING GOOD INVESTMENT STRATEGY

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It's a great pleasure and privilege in presenting this Project Report to one and all
concerned. My deepest gratuity to GEOJIT FINANCIAL SERVICES LIMITED,
MEHSANA to undergo research of STUDY OF INVESTOR INVESTMENT
BEHAVIOR IN STOCK MARKET & SUGGESTING GOOD INVESTMENT
STRATEGY

The successful completion of a project requires active participation of many people


from the time of inception of an idea to its implementation, many brain works
together and that only provides fruitful results.

I am highly indebted to PROF HARESH OZA for bestowing me his kind and
gracious facilitation during the research period. Without his prudent guidance and
encouragement the project would not have been possible.

I would also like to express my sincere thanks to other people at GEOJIT


FINANCIAL SERVICES LIMITED, MEHSANA, for their invaluable contribution and
guidance in making this Project Report. I would also like to thank all the
respondents who fill up the questionnaire without their response it is not possible
for me to complete the research.

I also like to thank all those people who have knowingly and unknowingly
contributed in one way or other in making this Project a more completely one with
their valuable tips and suggestion.

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For preparing the project report, I have visited the Geojit Financial Services
Limited for 21 days during the suggested duration from 27-10 2008 to 16-11-
2008, to avail the necessary information. I have filled up the questionnaire
with the customers of Geojit Financial Services Limited. The blend of learning
and knowledge acquired during my practical studies at the company is
presented in this project report.

The project report starts with the research objectives, basic information
regarding the research approach, the sample size for my research is 60 and
I have used simple random sampling method for my research and the sources
for data collection is both primary sources and secondary sources., after this I
have shown the data analysis of each question and for analysis I have used
percentile method and at last I have written findings and some of the
limitations which I have faced during my research work.

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I hope that the information incorporated in this project report would be
appreciated as I have put in may be efforts in leaving no stone unturned as I
consider it to be true, fair and relevant in its content and context to the best of
my knowledge and ability.

Sr. Particulars Page no.


1 Preface 2
2 Acknowledgement 3
3 Executive summary 4
4 Introduction about the company 6
5 Research Objectives 13

6 Research Methodology 14

7 Data analysis 15
8 Findings 30
9 Limitations 31
10 Conclusion 32
11 Bibliography 33
12 Annexure 34

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 INTRODUCTION ABOUT THE COMPANY

Mr. C.J. George and Mr. Ranajit Kanjilal founded Geojit as a partnership firm in the year
1987. In 1993, Mr. Ranajit Kanjilal retired from the firm and Geojit became a proprietary
concern of Mr. C .J. George. In 1994, it became a Public Limited Company by the name
Geojit Securities Ltd. The Kerala State Industrial Development Corporation Ltd. (KSIDC),
in 1995, became a co-promoter of Geojit by acquiring 24% stake in the company, the only
instance in India of a government entity participating in the equity of a stock broking
company. Geojit listed at The Stock Exchange, Mumbai (BSE) in the year 2000. In 2003,
the Company was renamed as Geojit Financial Services Ltd. (GFSL). The board of the
company consists of professional directors; including a Kerala government nominee with
2/3rd of the board members being Independent Directors. With effect from July 2005, the
company is also listed at The National Stock Exchange (NSE). Geojit is a charter member
of the Financial Planning Standards Board of India and is one of the largest DP brokers in
the country.

CORPORATE OFFICE

5th Floor, Finance Towers, Kaloor,

Kochi 682 017.

Ph : 0484 2405501/2

Fax : 2405618

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email : mailus@geojit.com

www.geojit.com

Management
Mr. C. J. George Managing Director
Mr. Satish Menon Director (Operations)
Mr. A. Balakrishnan Chief Technology Officer
Mr. K. Venkitesh National Head - Distribution
Mr. Stefan Groening Director (Planning and Control)
Mr. Jean-Christophe GOUGEON Director (Marketing)
Mr. Binoy .V.Samuel Chief Financial Officer
Mrs. Jaya Jacob Alexander Chief of Human Resources

Board of directors
Mr. A. P. Kurian Non - Executive & Independent Chairman
Mr. C. J. George Managing Director & Chief Promoter
Mr. P.H.Kurian Non - Executive Director
Mr. Mahesh Vyas Non - Executive & Independent Director
Mr. Rakesh Jhunjhunwala Non - Executive Director
Mr. Ramanathan Bupathy Non - Executive & Independent Director

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Mr. Punnoose George Non - Executive Director

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 HISTORY & DEVELOPMENT

 1986

 Membership In Cochin Stock Exchange(CSE)

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 1994

 Become A Public Limited Company Named Geojit Securities Limited

 1995

 Kerala State Industrial Development Corporation Ltd.(KSIDS) Acquires


24% Equity Stake

 Membership In National Stock Exchange

 1996

 Launch Of Portfolio Management Services With Sebi Registration

 1997

 Depositary Participant (DP) Under National Securities Depositary


Limited(NSDL)

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 1999

 Membership In Bombay Stock Exchange(BSE)

 2000

 BSE Listing
 1st Brocking Firm In India To Offer Online Trading Facality
 Commences Derivatives Trading With NSE

 Establishes The 1st Bank Gateway In The Country For Internet


Trading

 2001

 Becomes India’s First DP To Launch Depositary Transactions


Through Internet

 Establishes Joint Venture In The UAE To Serve NRI Clients

 2002

 1st In India To Launch An Integrated Internet Trading System For


Cash & Derivatives Segments

 2003

 Geojit Commodities Limited, Wholly Owned Subsidiary, Launches


Online Futures Trading In Agri-Commodities, Precious Metals And Energy
Futures On Multiple Commodity Exchanges
 Company Renamed As Geojit Financial Services Limited.

 2005

 NSE Listing
 Geojit Credits, A Subsidiary, Registers With RBI As A Non-Banking
Financial Company (NBFC)

 2007
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 BNP Paribas Takes A Stake In The Equity Of Geojit , Making It The
Largest Share-Holder

 Charter Member Of The Financial Planning Standards Board Of


India

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V.M.PATEL COLLEGE OF MANAGEMENT STUDIES
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RESEARCH OBJECTIVES
MAIN OBJECTIVE OF THE RESEARCH

The objective of my research is “TO STUDY INVESTOR


INVESTMENT BEHAVIOR IN STOCK MARKET & SUGGESTING
GOOD INVESTMENT STRATEGY “

OTHER OBJECTIVES

 To study the investment habit of the people in the stock market.

 To know about the people’s preference for investment whether


investment or trading

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 To understand the frequency of investment in the market

 To analyze from total saving how much portion of amount people invest
in stock market

 To understand how much people invest at a time

 To know that for how much period people invest in stock market

 To understand the expected return of people from investment

 To know on what basis people invest in stock market

 The preference of people for investment in a particular sector

 To analyze the preferred price range of share by people

 To understand the people’s investment strategy

 To find out the common mistakes made by investors

 To define certain views for making money in stock market

RESEARCH METHODOLOGY

 RESEARCH APPROACH

To achieve this objective I have conducted a survey and then collected data and
analyzed it and lastly find out the needed results

 SAMPLING METHOD

I have used simple random sampling method for my research

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 SOURCES OF DATA COLLECTION

Data sources of are two types


1) Primary data sources
2) Secondary data sources

1) Primary data sources


Primary data can be collected through the questionnaire. Which contain the different
question about the investment behavior and investment strategy. Primary data
sources are very helpful for research. This provides information related to the
investor’s investment behavior & investment strategy.

2) Secondary data sources


Secondary data can be collected through e-learning. It provides information
regarding Geojit Financial Services Limited

 SAMPLE SIZE

I used 60 samples for my study

 STATASTICAL TOOL USED FOR DATA ANALYSIS

PERCENTILE METHOD

 AREA OF STUDY

THE CUSTOMERS OF GEOJIT FINANCIAL SERVICES LIMITED,


MEHASANA

DATA ANALYSIS
1. From how many years you are in the stock market?

0-2 year 2-4 year

4-6 year more than 6 year

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No. of years No. of persons
0-2 year 21
2-4 year 24
4-6 year 9
more than 6 year 6

As shown above 35 % persons of my study have experience of about 2 years, about 40 %


persons of my study have experience about 2 to 4 years, 15 % persons of my study have
experience about 4 to 6 years, about 10 % persons of my study have experience of more
than 6 years in stock market.

2. How much investment have you made in the market? (Approximate)

0-2 lakh 2-4 lakh

4-6 lakh more than 6 lakh

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Investment No. of persons
0-2 lack 30
2-4 lack 18
4-6 lack 9
more than 6 lack 3

As per my research about 50 % persons would like to invest up to 2 lack while 30 %


persons would like to invest 2 to 4 lack and about 15 % persons would like to invest 4 to 6
lack while only 5 % persons would like to invest more than 6 lack. So company should
focus on those customers who would like to invest more in stock market.

3. Who brings you in stock market?

Friends & Relative News paper

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Advertise Mega public issue

Source No. of persons


Friends & Relative 42
News paper 12
Advertise 0
Mega public issue 6

As per above chart about 70 % persons would like to invest in stock market as per opinion
of their friends and relatives while 20 % persons would like to invest as per newspaper and
magazines and persons do not like to invest through advertising and about 10 % persons
would like to invest as per mega public issue. So it can be conclude that most of the people
invest as per opinion of their friends and relatives.

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4. What you prefer more?

Investment Trading Both

Preference No. of persons


Investment 36
Trading 18
Both 6

As per my research 60 % persons prefer investment while 30 % persons prefer trading and
only 10 % persons prefer both investment & trading. So we can conclude that majority of
the people prefer to invest rather than trading in the stock market.

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5 How much investment experience do you have?

Very little knowledge & experience

Some investment knowledge & understanding

Very huge experience & good knowledge of investment

Experience No. of persons


Very little knowledge & experience 6

Some investment knowledge & understanding 42

Very huge experience &good knowledge of investment 12

As per above chart 10% persons have Very little knowledge & experience while about 70 %
persons have Some investment knowledge & understanding and about 20% persons have
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Very huge experience &good knowledge of investment. From above information it is clear
that the majority of people who invest in stock market have average knowledge of
investment.

6. How frequently do you invest in the market?

Weekly Monthly

Quarterly Half yearly

Frequency of investment No. of persons


Weekly 24
Monthly 18
Quarterly 8
Half yearly 10

As per my research about 40 % persons would like to invest weekly in stock market while
30% persons would like to invest monthly in stock market and about 13.33% persons would
like to invest quarterly in stock market while about 16.67% persons would like to invest
half yearly in stock market.
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7. From total saving how much portion of amount you invest in stock market?

10-20% 20-40% 40-60%

60-80% 80-100%

Investment in stock market No. of persons


10-20% 10
20-40% 24
40-60% 18
60-80% 4
80-100% 4

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As per above chart about 16.66% persons invest 10 to 20% of their saving while about 40%
persons invest 20 to 40% of their saving and about 30% persons invest 40 to 60% of their
saving and about 6.67% persons invest 60 to 80% of their saving while about 6.67%
persons invest 80 to 100% of their saving.

8 How much do you invest at a time? (In1000Rs.)

Up to 5 5-10

10-15 15-20

20-25 More than 25

Investment at a time (In1000Rs.) No. of persons


Up to 5 20
5-10 20
10-15 10
15-20 2
20-25 2
More than 25 6

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As per my research about 33.34% persons invest up to 5000 Rs. At a time and about 33.345
persons invest 5000 to 10000 Rs. At a time while about 16.66% persons invest 10000 to
15000 Rs. At a time and about 3.33% persons invest 15000 to 20000 Rs. At a time while
another 3.33% persons would like to invest 20000 to 25000 Rs. At a time and about 10%
persons invest more than 25000 Rs. At a time.

9. For how much period you made investment?

8-10 Days 1-3 Month

3-6 Month 6-12 Month

More than 1year

Period for investment No. of persons


8-10 Days 4
1-3 Month 24
3-6 Month 6
6-12 Month 18
More than 1year 8

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Above chart shows that about 6.67% persons invest for 8 to 10 days while about 40%
persons invest for 1 month to 3 month and about 10% persons invest for 3 month to 6
month while 30% persons invest for 6 month to 12 month and about 13.33% persons invest
for more than one year.

10How much return you expect on your investment decision?

8-12% 12-16%

16-20% More than 20%

Expected return No. of persons


8-12% 18
12-16% 11

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16-20% 16
More than 20% 15

As per my research 30% persons expect 8 to 12% return while 18.33% persons expect 12 to
16% return and about 26.67% expect 16 to 20% return while 25% persons expect more than
2

11. On what basis you take your investment decision?

Broker’s advise Market situation

Tips, paid service News paper, Magazine


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Company’s news, Result Own study

Base No.of persons


Broker’s advise 12
Market situation 12
Tips, paid service 6
News paper, Magazine 8
Company’s news, Result 6
Own study 16

Broker’s advise 20%


26.67% 20%
Market situation
20%
Tips, paid service
10%
News paper,
20% Magazine 13.33%
10% Company’s news,
Result 10%
Own study 26.67%
13.33%
10%

Above chart shown the various factors and its impact on investment and how investor
consider such factors while investing. The chart suggest that people much like to invest
according to their own study of stock market.

12. At current level which sector do you prefer more for investment?

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Banking & Construction Energy & Power

Reality (real estate) Engineering

Metal Information technology

Capital Goods Financial Services

FMCG Telecom
Sector No. of persons
Banking & Construction 8
Energy & Power 12
Reality (real estate) 5

Engineering 4
Metal 4
Information technology 7
Capital Goods 5
Financial Services 6
FMCG 6
Telecom 3

Telecom
5%
FMCG Banking &
10% Construction
13%
Financial
Services Energy & Power
10% 20%

Capital Goods
8% Reality
(real estate)
Information Metal 8%
technology 7%
12% Engineering
7%

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13. From below mentioned share price range which range do you prefer for
Buying share?

Below Rs.50 Rs.50-100

Rs100-500 More than Rs.500

Price range No. of persons


Below Rs.50 6
Rs.50-100 26
Rs100-500 20
More than Rs.500 8

Above chart shows the price range preferred by various persons. From the above chart it
can be conclude that majority of people prefer the price of share from 50 to 100.

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14. What is your Investment strategy?

 Don’t invest more than 40% of your income


 Intention (market) environment based selection of sector and in that
sector invest in powerful companies
 Installment type investment like SIP
 Invest at every decline
 Invest for long term
 Invest in Blue Chip Company with good management.
 More investment, more money
 Invest in company which give good return to shareholder & have good
performance.
 Invest in short term profit making companies.
 Take delivery and wait up to sufficient return

15. In your opinion what are the mistakes made by common investors?

 Buy when price of share is high


 Don’t buy when price of share is low
 Purchase according to other’s views & tips
 Not buying in correction
 Buying speculative shares
 Buy at every upside and sell at every decline
 Invest money without understanding risk factor of sector and company
 Investors do not have patience.

16. What are your views for making money in stock market?

 Long term investment in powerful companies in recession time


 Buy in correction
 Avoid penny and speculative shares
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 Buy at every decline and sell at every upside
 Give more time to your investment
 Invest your money systematically
 Study the companies, make your own policies for investment and do not
fall victim of fear and greed
 To make money, take chances
 Buy shares when people sell and sell shares when people buy

17. Give your opinion reasons for this major correction?

 World recession
 Forth coming political elections
 Excessive rise of equities market in recent time
 Global financial crisis
 American subprime issue
 Lowest consumers and industrial demand
 Historical recession in world market
 Stock loss their trust in public
 Change in normal investor’s thinking regarding stock
 Inflation
 Foreign investor

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 People who invest in stock market have experience of stock market average 2 to 4
years.

 Most of the people do not want to invest in stock market more than 2 lack.

 Many people take decision to invest in stock market as per opinion of their friends
and relatives.

 People prefer to invest in stock market rather than trading

 People who invest in stock market have some investment knowledge &
understanding regarding stock market.

 Most of the people make investment in stock market weekly or monthly.

 People would like to invest about 40% of their saving in stock market.

 People like to invest up to 10,000 rs. At a time

 Most of the people would like to invest for 1 to 3 months in stock market.

 Most of the people expect 15 % return of their investment.

 Most of the people invest on the basis of their own study, broker’s advice & market
situation.

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 Most of the people prefer to invest in energy & power sector and banking &
construction sector.
 Most of the people prefer price of share about 50 to 100 rs.

 Invest in company which give good return to shareholder & have good performance.

 Take delivery and wait up to sufficient return

 Intention (market) environment based selection of sector and in that sector invest in
powerful companies
 Long term investment in powerful companies in recession time
 Study the companies, make your own policies for investment and do not fall victim
of fear and greed

 Some of the respondent does not give proper answers of questions.

 Respondent refuse to give answers of questions.

 Mostly in my research I have to face language barrier, people do not


understand English language well, so I have to explain them in Gujarati.

 It is difficult to complete the research well in 21 days.

 Some respondent tries to avoid feeling questionnaire.

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It is a good experience for me to conduct research about study of investor
investment behavior in stock market & suggesting good investment strategy.
It will prove very helpful to me in my future career.
While conducting this research I can understand the strategies of the people
who invest in stock market, their preference for investment, their experience of

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stock market, frequency of investment, expected return, on which basis they
invest & their views to about to make money in stock market.

 WEBSITE

www.geojit.com

 ANNEXURE

Questionnaire

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Dear Sir/ Madam,

I am student of B.B.A programme in V.M.Patel Collage Of


Management Studies, Kherva. I m conducting a survey on study of investor
investment behavior in stock market & suggesting good investment
strategy in Mehsana city. Please help me in this by answering the following
simple questions. I will treat any information you give me in strictest confident
and will use only for academic purpose.

1. From how many years you are in the stock market?

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0-2 year 2-4 year

4.6 year more than 6 year

2. How much investment have you made in the market? (Approximate)

0-2 lakh 2-4 lakh

4-6 lakh more than 6 lakh

3. Who brings you in stock market?

Friends & Relative News paper

Advertise Mega public issue

4. What you prefer more?

Investment Trading Both

5. How much investment experience do you have?

Very little knowledge & experience

Some investment knowledge & understanding

Very huge experience & good knowledge of investment

6. How frequently do you invest in the market?

Weekly Monthly

Quarterly Half yearly

7. From total saving how much portion of amount you invest in stock market?

10-20% 20-40% 40-60%

60-80% 80-100%

8. How much do you invest at a time? (In1000Rs.)

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Up to 5 5-10

10-15 15-20

20-25 More than 25

9. For how much period you made investment?

8-10 Days 1-3 Month

3-6 Month 6-12 Month

More than 1year

10. How much return you expect on your investment decision?

8-12% 12-16%

16-20% More than 20%

11. On what basis you take your investment decision?

Broker’s advise

Market situation

Tips, paid service

News paper, Magazine

Company’s news, Result

Own study

12. At current level which sector do you prefer more for investment?

Banking & Construction Energy & Power

Reality (real estate) Engineering

Metal Information technology

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Capital Goods Financial Services

FMCG Telecom

13. From below mentioned share price range which range do you prefer for
Buying share?

Below Rs.50 Rs.50-100

Rs100-500 More than Rs.500

14. What is your Investment strategy?

------------------------------------------------------------------------------------------
------

15. In your opinion what are the mistakes made by common investors?

-----------------------------------------------------------------------------------------
-------

16. What are your views for making money in stock market?

-------------------------------------------------------------------------------------------
-----

17. Give your opinion reasons for this major correction?


--------------------------------------------------------------------------------------------
---- --------------------------------------- PERSONAL
INFORMATION-------------------------------------

NAME: ---------------------------------------------------------------------
ADDRESS: -------------------------------------------------------------
AGE: ------------ YEARS
PROFESSION:
A) BUSINESS B) SERVICE C) PROFESSION D) OTHER

ANNUAL INCOME:
A) LESS THAN 50,000 B) 50,000 TO 1,00,000
C) 1, 00,001 TO 3, 00,000 D) 3, 00,001 TO 5, 00,000
E) MORE THAN 5, 00,000

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