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PROJECT REPORT ON

INVESTOR’S PERCEPTION TOWARD VARIOUS INVESTMENT PARAMETERS

Submitted in the partial fulfillment for the requirement of the Degree of Master of Business Administration (Integrated course)

(2013-2018)

PROJECT REPORT ON INVESTOR’S PERCEPTION TOWARD VARIOUS INVESTMENT PARAMETERS Submitted in the partial fulfillment for the

Submitted To:

Mr. Auvraj

Singh

(Assistant Professor)

Submitted By:

Lovedeep Singh

MBA (IC) 3 rd

813

UNIVERSITY SCHOOL OF BUSINESS STUDIES PUNJABI UNIVERSITY, GURU KASHI CAMPUS TALWANDI SABO.

1

(BATHINDA)

INDEX

S.NO

CHP. NO

TOPIC

PAGE. NO

  • 1. ACKNOWLEDGEMENT

 
  • 2. DECLARATION

 
  • 3. PREFACE

 
  • 4. COMPANY PROFILE

1.

1-2

  • 5. INTRODUCTION

2.

3-7

  • 6. INVESTMENT OPTION FOR INVESTOER

3.

8-10

  • 7. REVIEW OF LITERATURE

4.

11-21

  • 8. OBJECTIVES & RESEARCH METHODOLOGY

5.

22-26

  • 9. ANALYSIS & INTERPRETATION & FINDINGS

6.

27-37

  • 10. SUGGESTIONS AND RECOMMENDATIOBS

7.

38-39

  • 11. LIMMITATIONSA OF THE STUDY

8.

40-41

  • 12. 9.

BIBLOGRAPHY

42-43

  • 13. 10.

ANNEXURE

 
 
 

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ACKNOWLEDGEMENT

  • I take this opportunity to express my deep sense of gratitude to everyone who supported

and guide me to complete this project successfully. I am thankful for their aspiring guidance, invaluably constructive criticism and friendly advice during the project work. I am sincerely grateful to them for sharing their truthful and illuminating views on a number of issues related to the project.

  • I am highly grateful and indebted to my project guide Mr. Gagandeep Singh, Branch

Manager of Karvy Stock Broking, Patiala and for their excellent and expert guidance in helping

me in completion of project report.

  • I would also thank the whole team of Karvy Stock Broking, Patiala who has continually

helped me in completing the project report. And I am also thankful to my parents and my friends who have continually support and encouraged me in completing the report.

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Lovedeep Singh

DECLARATION

I hereby declare that the project report entitled “Investor’s perception towards various investment parameters” submitted in partial fulfillment of the requirement for the degree of master of business administration (Integration Course) University school of business studies, Talwandi sabo is my original work and has been submitted for the award of any other degree at any other institute or university.

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Lovedeep Singh MBA (IC) 3 rd

813

PREFACE

The successful completion of this project was a unique experience for me because by interacting various people; I achieved a better knowledge about this project. The experience which I gained by doing this project was essential at this turning point of my career this project is being submitted which content detailed analysis of the research under taken by me.

The research is on the topic “INVESTOR’S PERCEPTION TOWARD VARIOUS INVESTMENT PARAMETERS.”

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CHAPTER – 1 COMPANY PROFILE

COMPANY PROFILE

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The four chartered accountants founded Karvy Consultants Limited in 1982. A group of Hyderabad based practicing Chartered Accountants started Karvy taxation services initially. Later, it forayed in to the register and share transfer activities and subsequently into financial services. All along Karvy’s strong work ethics and professional background leveraged with information technology enabled it to deliver quality to the individual.

A decade of commitments, professional integrity and vision helped Karvy achieve a leadership position in its field when it handled the largest number of issue ever handled in the history of the Indian Stock market in a year. Therefore, Karvy made inroads into a host of capital market services corporate and retail, which proved to be a sound business synergy. Today Karvy has access to millions of shareholder, beside companies, banks, financial institution and regulatory agencies. Over the past one and half decade, Karvy has involved as a veritable link between industries, finance and people. In January 1998, Karvy became the first Depository participants in Andhra Pradesh. As ISO: 9002 Company,

Karvy ranks among the top player in almost all the fields it operates. Karvy Computershare Limited is India’s largest registrar and transfer agent with a client base of nearly 500 blue chip corporate, managing over 2 crore accounts. Karvy Stock Brokers Limited, member of National Stock Exchange of India and the Bombay Stock Exchange, ranks among the top 5 stock brokers in India. With over 6, 00,000 active accounts, it ranks among the top 5 Depositary Participant in India, registered with NSDL and CDSL. Karvy Com trade, Member of NCDEX and MCX ranks among the top 3 commodity brokers in the country. Karvy Insurance Brokers is registered as a Broker with IRDA and ranks among the top 5 insurance agent in the country. Registered with AMFI as a corporate Agent, Karvy is also among the top Mutual Fund mobilize with over Rs. 5,000 crores under management. Karvy Realty Services, which started in 2006, has quickly established itself as a broker who adds value, in the realty sector. Karvy Global offers niche off shoring services to clients in the US. Karvy has 575 offices over 375 locations across India and overseas at Dubai and New York. Over 9,000 highly Qualified people staff Karvy.

ORGANISATION

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Karvy was started by a group of five chartered accountants in 1979. The partners decided to offer, other than the audit services, value added services like corporate advisory services to their clients. The first firm in the group, Karvy Consultants Limited was incorporated on 23rd July, 1983. In a very short period, it became the largest Registrar and Transfer Agent in India. This business was spun off to form a separate joint venture with Computer share of Australia, in 2005. Karvy’s foray into stock broking began with marketing IPO’s, in 1993. Within a few years, Karvy began topping the IPO procurement league tables and it has consistently maintained its position among the top 5. Karvy was among the first few members of National Stock Exchange, in 1994 and became a member of The Stock Exchange, Mumbai in 2001. Dematerialization of shares gathered pace in mid-90s and Karvy was in the forefront educating investors on the advantages of dematerializing their shares. Today Karvy is among the top 5 Depositary Participant in India.

While the registry business is a 50:50 Joint Venture with Computer share of Australia, we have equity participation by ICICI Ventures Limited and Barings Asia Limited, in Karvy Stock Broking Limited. Karvy has always believed in adding value to services it offers to clients. A top-notch research team based in Mumbai and Hyderabad supports its employees to advise clients on their investment needs. With the information overload today, Karvy’s team of analysts help investors make the right calls, be it equities, mf, insurance. On a typical working day Karvy:

Has more than 25,000 investors visiting our 575 offices

Publishes / broadcasts at least 50 buy / sell calls

Attends to 10,000+ telephone calls

Mails 25,000 envelopes, containing Annual Reports,

Dividend cheques / advises, allotment / refund advises

Executes 150,000+ trades on NSE / BSE

Executes 50,000 debit / credit in the depositary accounts

Advises 3,000+ clients on the investments in mutual funds

First ISO - 9001: 2000 Certified Registrar in India

KARVY GROUP

  • 1. KARVY CINSULTANT LIMITED

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As the flagship company of the Karvy Group, Karvy Consultant Limited has always remained at the helm of organization affairs, pioneering business policies, works ethic and channels of progress. Karvy as a leader in the registry business now transferred this business into a joint venture with Computer share Limited of Australia, the world’s largest registrar. Today, we service over 6 lacks customer accounts in this business spread across over 250 cities/towns in India and are ranked amongst the largest Depository Participant in the country, Deal in Register and investment services. We are rated as India's "Most Admired Registrar" for overall excellence in volume management, quality processes and technology driven services. Our services include Initial Public Offers (IPO’s) processing, share holder servicing, effecting corporate actions, investor information services and host of technology enabled services to facilitate efficient and effective service delivery

2.

KARVY STOCK BROKING LIMITED

They offer trading on a vast platform – National Stock Exchange, Bombay Stock

Exchange and Hyderabad Stock Exchange. Information is given as a constant feedback to our customers, through daily reports delivered thrice Daily- The Pre- session Report, where market scenario for the day is predicated, the Mid- session Report, times to arrive during lunch break, where the market forecast for the rest of the day is given and the Post- session Report, the final report for the day, where the market and the report itself is reviewed. To add to this repository of information, we publish a monthly magazine “Karvy------ The Finapolis” Which analyzes the latest stock market trends and takes a close look at the various investment options, and product available in the market while a weekly report, called “Karvy Bazaar Baatein” keeps you more informed on the immediate trends in the stock market. In addition, our specific industry reports give comprehensive information on various industries. Beside this, we also offer special portfolio analysis packages that provide daily technical advice on scrip’s for successful portfolio management and provide customized advisory services to help you make the right financial moves that are specifically suited to your portfolio. The institutional broking arm of KARVY Stock Broking offers corporate houses and

institutions dealing capabilities on India leading stock exchanges (NSE and BSE) in the cash and derivatives segments. This unit has devised a process driven approach to address the needs of institutional investors who have unique and specialized investment needs.

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The institutional broking services desk is a specialized business unit at KARVY that operates out of Mumbai, the financial capital of India and is staffed with best-of-industry equity market professionals and highly skilled dealers. KARVY also supports institutional traders through their institutional sales and research teams with information and insightful reports on stocks, sectors and industry verticals. KARVY’s institutional broking clientele include some major domestic Mutual Funds, Insurance Companies, Banks and FII’s in India.

  • 3. KARVY INVESTORY SERVIES LIMITED

Karvy Investor Services Limited, a SEBI registered Merchant Banker is a 100% subsidiary of Karvy Consultants Limited and is among the top 10 merchant Bankers in India today. The parent Company i.e. Karvy Consultants Limited was founded by a group of professionals in 1982 and today it has evolved as integrated financial services company of repute, offering various financial services to suit every requirement/need of our customers. By virtue of its access to millions of Indian Shareholders, in addition to companies, banks and financial institutions, Karvy has in the process built up a positive reputation with regulatory authorities and other government agencies. Our emphasis on the quality of the services, we offer, has been instrumental in helping us to attain the leadership in the financial services sector.

We have a track record of handling 70 public/rights issues as Merchant Bankers. During the last two years we have handled the share buyback issues of TTK LIG Limited, Sirpur Paper Mills Limited, Bhagyanagar Metals Limited, A V Thomas Group-Nelliampathy Tea and Produce Company Limited, Chordia Food Products Limited, Heritage Foods (India) Limited, Titanor Components Ltd, Punjab Communications Limited, etc. to name a few.

We have also handled/are handling the Rights/Public issues of Dhanalakshmi Bank, Dhandapani Finance, Moschip, Karur Vysya Bank, Lux Hosiery Industries Ltd, Sah Petroleums Limited, Paradyne InfoTech Limited, Yash Papers Limited, SPL Industries Limited, Provogue (I) Limited, Tulip IT Services Limited, Gati Limited as lead managers to name a few. We have also been appointed as advisor to some of the GOI disinvestments. We have actively marketed bond issues of corporations from the States of Maharashtra, Karnataka & Gujarat and debt issues of all the Financial Institutions like IDBI, ICICI, IFCI, REC, PFC, SIDBI, etc.

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As an Investment Banker, Karvy provides;

• Management of Capital Issues

• Management of Buybacks, Takeovers and Delisting offers

• Private Placement of Debt and Equity

• Mergers and Amalgamations, • Loan Syndication

  • 4. KARVY COMODITIES BROKING PRIVATE LIMITED

We have made commodities trading, an essentially age-old practice, into a sophisticated and scientific investment option.

Here we enable trade in all goods and products of agricultural and mineral origin that include lucrative commodities like gold and silver and popular items like oil, pulses and cotton through a well-systematized trading platform. Our technological and infrastructural strengths and especially our street-smart skills make us an ideal broker.

Our service matrix is holistic with a gamut of advantages, the first and foremost being our legacy of human resources, technology and infrastructure that comes from being part of the Karvy Group.

Our wide national network, spanning the length and breadth of India, further supports these advantages. Regular trading workshops and seminars are conducted to hone trading strategies to perfection. Every move made is a calculated one, based on reliable research that is converted into valuable information through daily, weekly and monthly newsletters, calls and intraday alerts. Further, personalized service is provided here by a dedicated team committed to giving hassle- free service while the brokerage rates offered are extremely competitive. Our commitment to excel in this sector stems from the immense importance those commodities broking has to a cross-section of investors, farmers, exporters, importers, manufacturers and the Government of India itself. Visit us at www.karvycomtrade.com

  • 5. KARVY MUTUAL FUND SERVIES

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Investment is the stepping stone to achieving one's financial dreams. Mutual funds offer an opportune way to long-term wealth creation. However, with more and more funds flooding the market, the task of selecting the most suitable scheme gets even more complicated. Mutual Fund Advisory Service at Karvy guides you through this maze and ensures that your investments are backed by our quality research. We, at Karvy help you to reach your goals by offering:

Products of 33 AMCs

Research reports (existing funds & NFOs; strategy reports etc.)

Customized mutual fund portfolios

Portfolio revision (depending on changing market outlook and evolving trends)

Access to online consolidated portfolio statement

  • 6. IPO PRODUCTION PRIVATE LIMITED

An Initial Public Offer (IPO) is a means of collecting money from the public by a company for the first time in the market to fund its projects. In return, the company gives the share to the investors in the company.

In an IPO, the Lead managers decide the price of the issue. In a book building offer, the syndicate members decide the indicative price range and the investors decide the price of the issue through a tender method.

A draft prospectus provides the information on the financials of the company, promoters, background, tentative issue price etc. It is filed by the Lead Managers with the Securities & Exchange Board of India (SEBI) to provide issue details. Overview of the draft prospectus can be seen on www.sebi.gov.in (SEBI's web site click here). The final prospectus is printed after obtaining the clearance from SEBI and the Registrar of Companies (ROC).

  • 7. KARVY FIXED INCOME SECYRITYIES & TRADING (K-FIST)

It was started in December 2002 with a roll out from 7 dedicated centers of Karvy. The Retail Debt Market division which is centralized at the HO in Hyderabad provides fixed income products to its clients and is primarily a fund based activity. The deal sizes vary from Rs.10,000 to Rs.5 cores.

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Products - Central Government securities, State Development Loans, State Guaranteed bonds, Public Sector Undertaking Bonds, Financial Institution Bonds, and Bank bonds of SLR/Non-SLR category, both taxable and tax-free.

Target clients - Provident Fund Trusts, Educational & Religious trusts, charitable trusts, and Co-operative banks, Regional Rural Banks, Corporate, and High Net worth Individuals Standard Operating Procedures - Based on the specific needs of the prospects Quotes of all categories of bonds are sent. The selection of instrument is done and post negotiation (if any) the settlement date is finalized. Contract notes are exchanged and written confirmations are obtained before initiating the trade settlement. On the agreed settlement date, the funds and securities are exchanged between the parties. Primarily all the trades are in the electronic mode only. The Wholesale Debt Market division is centralized at Mumbai and is a voice based order matching activity which is fee based. The deal size is a minimum of Rs.5 cr. And the reporting is done on the NSE.

Products - Central Government securities, State Development Loans, State Guaranteed bonds, Public Sector Undertaking Bonds, Financial Institution Bonds, and Bank bonds of SLR/Non-SLR category, both taxable and tax-free.

Target clients: - Co-operative banks, commercial banks, Corporate, Financial Institutions, Insurance companies and Asset Management Companies.

Standard Operating Procedures - The dealers generate 2-way quotes during the trading hours and match the institutional buyers and sellers. The deal contract notes are generated and exchanged between the 2 parties. The fees are collected by raising debit notes on a monthly basis.

  • 8. KARVY REALITY (INDIA) LIMITED

(KRIL) is promoted by the KARVY Group, India’s largest integrated financial services group. The group carries forward its legacy of trust and excellence in investor and customer services delivered with a passion for services and the highest level of quality that align with global standards. KRIL is engaged in the business of real estate and property services.

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Buying/ selling/ renting of properties

Identifying valuable investments opportunities in the real estate sector

Facilitating financial support for real estate and investments in properties

Real estate portfolio advisory services.

KRIL is your personal real estate advisor guiding and hand holding you through real estate transactions and offering valuable investment opportunities.

Building on the KARVY brand as a leading industry benchmark for world class customer servicing and quality standards, KRIL brings to investors a reputation of reliability, dependability and honesty. Our understanding of the needs and preferences of our clients and our teams of qualified realty professionals help us to establish fruitful relationships with buyers and sellers of properties alike.

A single stop shop for realty services offering:

Transacting Options: Choose to buy, sell or rent properties (residential and commercial)

Investing Options: Give your investments a good opportunity with properties marketed

by KRIL. Financing Options: Get unmatched deals for financing your investment

Research Options: We undertake valuation and feasibility studies, area analysis and

customized analysis on behalf of clients.

KRIL has ongoing relations with builders and developers across the country which will help you place your investments in the most genuine properties for a good value appreciation at the right place and at the right price. KRIL is committed to the guiding principles of quality, timely service delivery, fair pricing, transparency and integrity.

  • 9. KARVY INSURANCE BROKING PRIVATE LIMITED

At Karvy Insurance Broking (P) Ltd. we provide both life and non-life insurance products to retail individuals, high net-worth clients and corporate. With the opening up of the insurance sector and with a large number of private players in the business, we are in a position to provide tailor made policies for different segments of customers. In our journey to emerge as a personal finance advisor, we will be better positioned to leverage our relationships with the product providers and place the requirements of our customers appropriately with the product providers.

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With Indian markets seeing a sea change, both in terms of investment pattern and attitude of investors, insurance is no more seen as only a tax saving product but also as an investment product. By setting up a separate entity, we would be positioned to provide the best of the products available in this business to our customers.

Our wide national network, spanning the length and breadth of India, further supports these advantages. Further, personalized service is provided here by a dedicated team committed in giving hassle-free service to the clients.

  • 10. KARVY PORTFOLIO MANAGEMENT SERVICE LIMITED

KARVY is a premier integrated financial services provider, and ranked among the top five in the country in all its business segments. KARVY owes its success to its professionally managed team of experts, who have been chosen from some of the most reputed institutions and firms across India.

In today's intricate and volatile market your investment requires constant monitoring and attention. The demand made on your time and energy by other business may not leave you with capacity to attend to your personal portfolio with the degree of care you deem appropriate. We at KARVY understand your situation and offer PMS services taking the same level of care and attention you would devote to monitoring your portfolio.

Green Wallet is an Endeavour specially designed by Karvy to enhance the wealth of a niche segment of investors. This service primarily meant for HNIs (High Net worth Individuals) offers customers a wide range of schemes. These unique schemes seek to achieve higher returns through broad based participation in equity markets. This is achieved by creating a diversified equity portfolio of small, medium and large capitalized companies.

  • 11. KARVY DEPOSITORY SERVICES LIMITED

Stock Broking Limited provides depository services to investors as a Depository Participant with the National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL). The Depository system in India links Issuers, National level Depositories, Depository Participants and Clearing Houses / Clearing Corporation of Stock Exchanges. Our

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demat services are accessible through any of our network of over 575 branches / investor service centers located in over 375 cities and towns across the country.

Our demat services business has the distinction of having all its operations ISO 9001:

2000 certified with state-of-the-art technology and operations capabilities. Our demat services has innovated over time and we provide online access to account statements and transaction alerts through SMS to its clients.

KARVY’s Demat services offer you a secure, convenient and paperless way to keep track of your investments in shares and other security instruments over time, without the hassle of handling paper based transcripts.

We provide the following services:

Dematerialization of Shares

Dematerialization of Shares

Transfer of Shares

Pledging of Shares

Electronic Custodial Services

Maintenance of Beneficial Holdings

Electronic Credit against Corporate Actions

QUALITY POLICY OF THE COMPANY

To achieve and retain leadership, Karvy shall aim for complete customer satisfaction, by combining its human and technological resources, to provide superior quality financial service, in the process, Karvy will strive to exceed customer’s expectation.

Quality Objectives:-

As per the quality policy, Karvy we’ll:

Build-in-house processes that will insure transparent and harmonious relationship with its clients and investor to provide high quality of services.

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Establish a partner relationship with its investors service agent and vendors that will help in keeping up it commitments to the customers. Provide high quality of work life for all its employees and equip them with adequate knowledge and skills so as to respond to customer’s needs. Continue to uphold the values of honesty and integrity and strive to establish unparalleled standard and business ethics. Use state-of-the art information technology in developing new and innovative financial products and services to meet the changing needs of investors and clients. Strive to be a reliable source of value-edit products and services and constantly guide the individuals and institutions in making judicious choices of same. Strive to keep all stakeholders (share holders, clients, investors, employees, suppliers and regulatory authorities) proud and satisfy.

STRATEGIES OF THE COMPANY

Karvy believes that the foremost ingredient for success in the has been the co-operation ability to continuously evolve both organizational structure and product offerings, thereby remaining on the cutting financial services.

Karvy believes that three capitals viz., financial, human and technology, would drive the financial services sector in the future and draw the boundaries for achieving leadership.

Karvy believes that customized solutions are now the key drivers for market share and profit margins.

DEVELOPMENT ACTIVIES

Karvy has sought to broaden the scope of its activities by examining all sectors of the economy and by introduction new concepts, new instruments and in some cases new institution to response to perceived needs. In this regards, karvy developmental activities have encompassed such diverse areas as financial investment, insurance, depository participant’s services, skill development activities etc.

It has also been a pioneer in setting up PAN. TAN services, and also setting up specialized institution in certain key sections.

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  • 1. TIN facilitation centre.

  • 2. Stock broking centre.

  • 3. Financial centre.

  • 4. Banking centre.

  • 5. Registrar of the issues. A separate department is present with the sole intent of providing financial services to various charitable, educational and social welfare organizations.

ACHIEVMENTS

Largest mobilize of funds as per PRIME DATABASE.

First ISO- 9002 certified Registrar in India.

A category- 1- Merchant banker.

A category- 1- Registrar to public issues.

Ranked as “the most admired Registrar” by MARG

Handled the largest –ever public issue-IDBI.

Handled over 500 public issues as Registrars.

Handling the reliance account, this accounts for nearly 10 million account holders.

First depository participants in Andhra Pradesh.

Major issues managed as arrangers:

1.Kerala state Electricity Board. 2.Power Finance Corporation. 3.A.P. water resources development corporation 4.A.P. state electricity board. 5.Haldia petrochemicals Ltd. Major issues managed as co-managers. 1.Indus land Bank Ltd. 2.ICICI Bonds-March97. 3.ICICI Bonds-dec.97. 4.ICICI safety Bonds-April 98, July98, Oct.98, Dec.98, Jan.99. 5.The Jammu & Kashmir BankLtd.

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Major issues handled and registrar to issues.

  • 1. IDBI equity

  • 2. Morgan Stanley mutual fund

  • 3. Bank of Baroda

  • 4. Bank of Punjab Ltd.

  • 5. Corporation Bank.

  • 6. Indus land Bank Ltd.

  • 7. Jammu & Kashmir Bank Ltd.

  • 8. Housing and Urban development corporation (HODCO) Ltd.

  • 9. Madras Refineries Ltd.

    • 10. BPL Ltd.

    • 11. Birla 3M Ltd.

    • 12. Essar shipping Ltd.

    • 13. Essar stels Ltd.

    • 14. Hindustan Petroleum Corporation Ltd.

    • 15. Infosys technologies Ltd.

    • 16. Jindal Vijay Nagar Steels Ltd.

    • 17. Nagarjun fertilizers and chemicals Ltd.

    • 18. Rajshree Polyfil LTD.

KARVY SCURITIES LIMITED

Karvy has secured over Rs. 500 crore in the following debt issues

Andhra Pradesh Road Development Corporation Ltd.

ICICI Bonds ( Private placement )

ICICI Bonds-96.

ICICI Bonds- 97-I

ICICI Bonds-97-II.

ICICI Safety Bond-March 98.

ICICI Bond 96.

IDBI Flexi Bond-I

IDBI Flexi Bond –II

IDBI Flexi Bonds –III

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Kerala state electricity Board.

Krishna Bhgya Jala Nigam Ltd.

Power Finance Corporation Ltd.

Andhra Pradesh Water Resources Development Corporation

Andhra Pradesh state Electricity Board.

DEMAT ACCOUNT

Demat account is very much similar to saving current account of a bank, with the only difference being that it deals with securities in electronics form and not money .’’A demat account is just polite farewell to paperwork and a warm welcome to greater efficiency and for that matter, security. A Dmat account a unique, capital-market-investor-oriented

Benefits of the Demat account:-

No loss of share certificates.

No delay in transfer of shares.

No possibility of forgery on various document dealing to bad deliveries, legal disputes.

No possibility of theft of share certificates.

No prevalence of fake certificates in the markets

No mutilation or loss of share certificates in transit.

You can also receive your bonuses and rights into your depository account as a direct credit, thus eliminating risk of loss in transit.

You can also expect a lower interest charge for loan taken against demat shares as compared to interest for loan against physical shares .this could result in a saving of about 0.25% to 1.5% some banks have already announced this .

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RBI has increased the limit of loans against dematerialized securities as collateral to rs.2 mn per borers as against Rs.1 mn per borers in case of loans against physical securities.

RBI has also reduce the minimum margin to 25% for loans dematerialized securities as against 50% for loans against physical securities.

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CHAPTER – 2 INTRODUCTION

Investment

INTRODUCTION

An investment is an asset or item that is purchased with the hope that it will generate income or appreciate in the future. In an economic sense, an investment is the purchase of goods that are

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not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or appreciate and be sold at a higher price.

Investor

An investor is any person who commits capital with the expectation of financial returns. Investors utilize investments in order to grow their money and/or provide an income during retirement, such as with an annuity. A wide variety of investment vehicles exist including (but not limited to) stocks, bonds, commodities, mutual funds, exchange-traded funds (ETFs), options, futures, foreign exchange, gold, silver, retirement plans and real estate. Investors typically perform technical and/or fundamental analysis to determine favorable investment opportunities, and generally prefer to minimize risk while maximizing returns.

Investment criteria

Investment criteria are the defined set of parameters used by financial and strategic buyers to assess an acquisition target. Sophisticated buyers will usually have two sets of criteria:

The parameters that are disclosed publicly to intermediaries such as investment bankers, so they know what the buyer is looking for in order to source deals that fit; and

The parameters developed for internal review that allows a buyer to quickly determine if the acquisition should be pursued further.

The most common publicly disclosed investment criteria include the geography, size of the investment or company targeted, and industry. Some buyers also disclose criteria regarding the investment type which may include management buyouts (MBO), distressed opportunities, or succession situations.

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CHAPTER – 3 INVESTMENT OPTION FOR INVESTOR

INVESTMENT OPTION FOR INVESTOR

Investment Option in Banks

  • 1. Fixed Deposit account

In this category are included the deposits with the band for fixed period that is specified

at the time of making the deposit. It is repayable on the expiry of specified period.

  • 2. Saving Bank Account

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A saving Bank account is meant for the people of the lower and the middle class who

wish to save a part of their current income to meet their future needs and also intend to earn an income from their saving. The banks, therefore, impose certain restriction on the saving bank account and also offer a reasonable at of interest.

  • 3. Recurring Deposit or Cumulative Deposit Accounts

It is variant of the saving bank account. It is intended to indicate the habit of saving on

the regular basis as an inducement if offered in the form of comparatively higher rate of interest.

  • 4. Current Account

A current account is a running and active account that may be operated upon any number

of time.

Investment Option in Small Saving Schemes

Small Saving Schemes are administers through post offices. These are ideal for small

investor looking for fixed return with high safety.

  • 1. National Saving Certificate (NSC)

National

Saving

Certificate

(NSC)

is

certificate

issued

by department of post,

Government of India and is available at all post office country. It is a long term safe savings

option for the investor.

  • 2. Kisan Vikas Patra (KVP) Kisan vikas patra(KVP) Double your money in 8 years and 7 month with the advantage of pre mature withdrawal. KVP is sold through all head post office and other Authorized post office throughout India. The rate of return is 8.41%, compounded annually interest rate affect the decision to buy, or sell (ancash prematurely) relating to KVP.

  • 3. Monthly Income Scheme(MIS) The post office monthly income scheme (MIS) provides for monthly payment of interest income to investors. The post office MIS gives a return of 8 percent plus a bonus of 10 percent on maturity.

  • 4. Recurring Deposit (RDA) A post office Recurring Deposit Account (RDA) is akin to a recurring deposit in a bank, where you invest a fixed amount on a monthly basis. The deposit has a fixed tenure, and the Scheme is a powerful tool for regular saving.

  • 5. Public Provident Fund (PPF) The public provident fund scheme is a statutory scheme of the central government of India. The scheme is for 15 years. The rate of interest is 8 % compounded annually. The

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minimum deposit is Rs-500/- and maximum is Rs-70,000/- in financial years. The amount of deposit can be varied to suit the convenience of the account holders. The account in which deposit are not made for any reason in treated as discontinued account and such account cannot be closed before maturity.

Investment Option in Securities Market

  • 1. Equity Shares Secondary market refers to the stock exchanges where investors can buy/sell shares that are listed on them. Equity shares have dominated India’s stock market. As a result of significant change in the past, particularly computerization, online trading, dematerialization and depository participation, investors are now dealing with a much more transparent and efficient secondary markets. Equity shares yield returns in two ways: one, Dividends declared by the companies usually at the end of the year and two the capital gains on sale of equity shares. Liquidity of investment in equity shares depends upon the trading volumes of the share. An investor needs to be aware of the companies and their performance. Companies’ performance should be monitored closely in order to track the investment performance.

  • 2. Debt. Instrument Debt instrument represent contracts where one party in the investor another party is the issuer. Debt instrument are a way for markets and participant to easily transfer the ownership of debt obligation from one party to another. Debt obligation transferability increases liquidity and gives creditors a means to debt obligation from one party to another. When a debt instrument is used as a medium to facilitate debt trading debt obligation can be moved from one party to another quickly and efficiently. The debt contract specifies the rate of interest, time of interest payment.

  • 3. Maturity Fund Mutual fund is a investment company that pools money from shareholders and invests in a variety of securities, such as stocks, bonds and money market instruments. In Short, mutual funds is a common pool of money in to which investor with common investment objective place their contributions that are to be invested in accordance with the started investment objective of the scheme the investment manager would invest the money collected from the

26

investor in to assets that are defined/ permitted by the stated objective of the scheme. Mutual fund is a suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost.

CHAPTER – 4 REVIEW OF LITERATURE

27

REVIEW OF LITARATURE

There have been various studies in the past on investment, their utility and affects on the investors and the economy at large. In this chapter an attempt has been made to review the past related studies on the research area in order to see the potential for future research area in order to see the potential for future research. Some of the related studies were reviewed.

Terrance (1998)

The main focused to examine this study the behavior of individual investors and find them exhibiting disposition effects, that is, they realized their profitable stocks need aa investment at a much higher rate than their unprofitable ones. The disposition effect is found to influence market price; yet its economics significance is likely to be the greatest for individual investors.

Chakarabarti and Rungta (2000)

28

Revealed that stressed the importance of brand effect in determining the competitive position of the AMCs. Their study reveals that brand image factor, through cannot be easily captured by computable performance measures, influence the investor’s perception and hence his fund/scheme selection.

Chalam (2003)

Analyzed that factors influencing the investment equity shares/mutual funds are return capital appreciation, and tax saves purpose, liquidity, marketability and safety. Majority of the investors prefer in real estate investment, followed by mutual fund schemes, gold and precious metals. Majority of investors in Equity Shares are employee. They preferred only growth options compared to income options. Majority of the investors are very much interested to take the re- investment benefit rather than regular dividend.

Gelade and young (2005)

Examined the relationship between organization climate, employee attitude, customer satisfaction and sales performance and concluded that teamwork climate, job enablers and support climate are organizational climate variables, commitment is an employee attitude and customer satisfaction and sales achievement are organizational performance measures.

Mohanty (2006)

Equity Shares are non availability of tailor-made schemes, no guarantee of returns, no control over cost, problem of managing large corpus, volatility of return depend on market conditions, which is subject to frequent market volatility and mostly investment period is medium term where expected return is more.

Sa prasm (2008)

29

It examined the security market globally has been very volatile in the recent past thousand point movement either way in the domestic market in a single day have become order of the day the retail investor are generally always at the receiving end this kind of high vitality as the market takes the beating the meltdown of Bombay stock exchange ‘Sensex’ and national stock exchange ‘nifty’ led to erosion of several crores of retail investors health this is the reason of security and exchange board of India has felt the need to cut the cost of buying mutual fund schemes to makes it a viable vehicles of investment for the retail investor to participate in the equity.

Ganapthy, R., (2008)

Revealed that, “Investors whom have hitherto been investing in assured return schemes like fixed deposits and small savings often refuse to look at anther smart options like share just because they do not offer guaranteed returns. It will be quite a challenge for the industry to bring investor into its fold. The industry will also have to ensure that as and when these investors decided to being investing in equity shares, they select the right type of funds and invest with a long term view in mind.”

Syed Tabasco Sultana (2010)

In his study, “an empirical studies of Indian individual investors’ behavior, mentioned that age for the major difference in risk taking decisions by the investors. The order an investor, the better seemed his/her performance in comparisons to the younger ones. Overconfidence in their one investment ability among the youngsters largely accounts for the excessive trading among younger investors leading to lower returns and this direct to decline in the risk tolerance level.

Singh (2012)

30

Analyzed that the Indian investors and observed that most of the respondents do not have much awareness about the various function of Stock Market and they are bit confused regarding investment in shares. The study found that some demographic factors like gender, income and level of education have their significant impact over the attitude towards shares. On the contrary age and occupation have do not found influencing the investor’s attitude. The study noticed that return potential and liquidity have been perceived to be most lucrative benefits of investment in shares and the same are followed by flexibility, transparency and affordability.

CHAPTER – 5

31

OBJECTIVES & RESEARCH METHODOLOGY

OBJECTIVES OF THE STUDY

  • 1. To determine the level of awareness about shares among Indian investor.

  • 2. To study the consumer perception and satisfaction level regarding Equity Shares.

  • 3. To understand investors perception towards various parameters.

32

RESEARCH METHODOLOGY

The quality and reliability of research study is dependent on the information collected in a scientific and methodological manner. Scientific planning of designing of research method is a blue print for any research study. Proper time and attention given in designing this research. Selection of methodology for a particular project is made easy by sorting out a number of alternative approaches, each of them having its own advantage and disadvantages. Efficient design is that which ensure that the relevant data are collected accurately. Research is the solution of the problem, whether created or already generated.

(1) Research Design

Research design is the first and foremost step in methodology adopted and undertaking research study. It is overall plan for the collection and analysis of data in the research project. Thus it is an organized, systematic approach to be the formulation, implementation and control of research project.

In fact a well planned and well balanced research design guards against collection of irrelevant data and achieves the result in the best possible way.

33

The research design is a master plan specifying the method and procedures for collecting and analyzing needed information. The research design in this project is DESCRIPTIVE and Descriptive research includes surveys and fact-finding inquiries of different kinds.

(2) Data Collection Methods

Data are the bricks with which the researcher has to make a house. While the qualities of research findings depend on data, the adequacy of appropriate data in turn depends upon proper method of data collection. A number of methods are at the disposal of me of which one has to select the most appropriate one for visualizing the research objective. Thus I have to see that the method adopted is compatible with the resources and research study. I used Questionnaire & interview method for data collection.

  • (a) Primary Data:

Primary Data is that data which are collected fresh and for the first time and thus happens to be original in character. Primary data has been collected directly from sample respondents through

Questionnaire Method

Interview Method

  • (b) Secondary Data:

There are the various sources for secondary data like books, and small notes Sheet, news paper, written material available in the company, balance sheets, and charts. The secondary data was collected after choosing the topic, which is very practical and theoretical to the research. It was collected from the company brochure and documents.

In my study the main emphasis was on the questionnaire method. The Likert Scale has been used for getting the responses through questionnaire. Personal interview were also conducted. There was face to face conversation between me and the respondents. All the answers were recorded while interview was in progress.

34

  • (a) Sampling Size:

 

70 Respondents

  • (b) Sampling Unit:

 

Existing investor in Karvy Stock Broking

  • (c) Sampling Area:

Patiala

(4) Data Analysis

The data collected through survey was analyzed with help of simple percentages. Tabular and graphic methods, which included pie charts and bar graphs, are used to analyze data. To measure the customer satisfaction, I had covered almost 70 investors in Patiala.

35

CHAPTER – 6 ANALYSIS AND INTERPRETATION & FINDING

36

1. Occupation Frequency Percent Valid Cumulative Percent Percent Government employee Private employee Businessmen 26 37.1 37.1
1.
Occupation
Frequency
Percent
Valid
Cumulative
Percent
Percent
Government employee
Private employee
Businessmen
26
37.1
37.1
37.1
16
22.9
22.9
60.0
19
27.1
27.1
87.1
Retired
9
12.9
12.9
100.0
Total
70
100.0
100.0
37

Occupation

Govt. Employee Private Employee Businessmen Retired
Govt. Employee
Private Employee
Businessmen
Retired

ANALYSIS:

For my analysis

purpose I have 80% respondent out of which 70 respondents

are

interested in investment in shares. Out of those 70, most interested investors are government employees i.e. 37.1% and least interested in Shares are retired people i.e. 12.9% and rest 10 respondent are interested to invest in other securities because they think thet they earn more

profit then Equity shares.

  • 2. Age Group

 

Frequency

Percent

Valid

Cumulative

 

Percent

Percent

  • 20 31

– 40

44.3

44.3

44.3

  • 40 22

– 60

31.4

31.4

75.7

Above 60

17

24.3

24.3

100.0

Total

70

100.0

100.0

38

Age Group

Age Group 20 - 40 40 - 60 Above 60 ANALYSIS: From the above graph, it
20 - 40
  • 20 - 40

40 - 60
  • 40 - 60

Above 60

Above 60

ANALYSIS:

From the above graph, it is observed that 44.3% of the respondents are in the age group of 20 – 40 years, 31.4% of the respondents are in the age group 40 – 60 years and 24.3% of the respondents are above 60 years. Majority of the respondents are between 40 – 60 years.

3.

Education

 

Frequency

Percent

Valid

Cumulative

 

Percent

Percent

Illiterate(uneducated)

7

10.0

10.0

10.0

Metric/senior secondary

12

17.1

17.1

27.1

Graduation

31

44.2

44.2

71.3

Post Graduation

17

24.2

24.2

95.5

Doctorate

3

4.5

4.5

100.0

Total

70

100.0

100.0

39

Education

Illiterate Metric/Senior secondary Graduation Post Graduation Doctorate
Illiterate
Metric/Senior secondary
Graduation
Post Graduation
Doctorate

ANALYSIS;

From the above graph, it is observed that 44.2% of the respondents are Graduate, 24.2% of the respondents are Post graduate, 10% of the respondents are illiterates and 3% of the

respondents are Doctorate. Majority of the respondents are Graduate.

  • 4. Annual household income

 

Frequency

Percent

Valid

Cumulative

 

Percent

Percent

Less than 1.5 lakh

13

18.6

18.6

18.6

1.5 to 3 lakh

20

28.6

28.6

47.1

3 to 5 lakh

23

32.9

32.9

80.0

Above 5 lakh

14

20.0

20.0

100.0

Total

70

100.0

100.0

40

Annual household income

Less than 1.5 lakh 1.5 to 3 lakh 3 to 5 lakh Above 5 lakh
Less than 1.5 lakh
1.5 to 3 lakh
3 to 5 lakh
Above 5 lakh

ANALYSIS:

From the above graph, it is observed that 18.6% respondents fall under income group of less than 1.5 lakh 28.6% of our total respondents fall under 1.5-3 lakh income group,

32.9% (maximum) respondents fall under income group of between 3 to 5 lakh and 20% respondents fall under income group above 5 lakh.

  • 5. You are interested in investment

 

Frequency

Percent

Valid

Cumulative

 

Percent

Percent

Yes

69

98.6

98.6

98.6

No

1

1.4

1.4

100.0

Total

70

100.0

100.0

41

Interested in Investment

Interested in Investment Yes No ANALYSIS: This graph shows that, it is observed that 98.6% of
  • Yes

  • No

ANALYSIS:

This graph shows that, it is observed that 98.6% of the respondents invested in shares and

1.4 of total respondents didn’t invest in any share.

  • 6. Where do you make investment?

 

Frequency

Percent

Valid

Cumulative

 

Percent

Percent

Fixed deposit

5

7.1

7.1

7.1

Property

2

2.8

2.8

9.9

Shares

51

72.9

72.9

82.8

Insurance

4

5.7

5.7

88.5

Mutual Funds

8

11.5

11.5

100.0

Total

70

100.0

100.0

42

Investment

Fixed Deposit Property Shares Insurance Mutual funds
Fixed Deposit
Property
Shares
Insurance
Mutual funds

ANALYSIS:

In this graph, out of 70 respondents, it is observed that 72.9% respondents prefer to invest

into shares, 7.1% respondents prefer to invest into fixed deposit, 11.5%respondents prefer to invest in mutual funds and 8.5% respondents prefer to invest into property & insurance

  • 7. Which in more profitable?

 

Frequency

Percent

Valid

Cumulative

 

Percent

Percent

Fixed deposit

7

10.0

10.0

10.0

Mutual funds

11

15.7

15.7

25.7

Shares

48

68.6

68.6

94.3

Commodity

4

5.7

5.7

100.0

Total

70

100.0

100.0

43

More Profitable

Fixed deposit Mutual Funds Shares Commodity
Fixed deposit
Mutual Funds
Shares
Commodity

ANALYSIS:

From the above table, out of 70 respondents, it is observed that 68.6% of respondents are

saying Shares, 15.7% of respondents are saying Mutual funds, 7% of respondents are saying fixed deposit & other 4% are saying commodity in more profitable.

  • 8. What is your objective/motive behind investment?

 

Frequency

Percent

Valid

Cumulative

 

Percent

Percent

Long term profit

21

30.0

30.0

30.0

Regular profit

14

20.0

20.0

50.0

Secure future

22

31.4

31.4

81.4

Tax benefits

13

18.6

18.6

100.0

Total

70

100.0

100.0

44

Objective/Motive

Long term Profit Regular Profit Secure Future Tax benefit
Long term Profit
Regular Profit
Secure Future
Tax benefit

ANALYSIS:

In the above graph,

it is observed that 30% of the respondents are investing for the

purpose of long term profits, 20% invest for the purpose of generating regular income, 31.4% of maximum respondents are those who invest to secure their future & 18.6% of the respondents who are least in number invest for tax benefit.

  • 9. How do you prioritize the reason for investment?

Saving for future

2.557143

Tax saving

3.142857

Return

2.942857

Future outlook

3.742857

Brand value

4.428571

Risk factor

4.185714

45

Reason for Investment

0.5 2.5 4.5 3.5 1.5 4 0 3 5 2 1
0.5
2.5
4.5
3.5
1.5
4
0
3
5
2
1

ANALYSIS:

In above figure shows that, out of 70 respondents, after finding the mean saving for

future has got 2.557143 mean and tax incentives has got 3.142857mean, return has got 2.942857 mean, future outlook has got 3.742857 mean, brand value has got 4.428571 mean (maximum) & risk factor has got 4.185714 mean.

10. Is investment in equity shares safe?

 

Frequency

Percent

Valid

Cumulative

 

Percent

Percent

Yes

67

95.7

95.7

95.7

No

3

4.3

4.3

100.0

Total

70

100.0

100.0

46

Is investment in Equity share safe?

Is investment in Equity share safe? Yes No ANALYSIS: In this graph, it is observed that
  • Yes

  • No

ANALYSIS:

In this graph, it is observed that out of 70 respondents who are interested in investment

into shares, 95.7% respondents are saying that equity shares units are safe and 4.3% respondents are saying equity shares are not safe.

11. What is your expected return?

 

Frequency

Percent

Valid

Cumulative

 

Percent

Percent

Less than 10%

13

18.6

18.6

18.6

10% to 30%

38

54.3

54.3

72.9

Above 30%

19

27.1

27.1

100.0

Total

70

100.0

100.0

47

Expected Return

Less than 10% 10% to 30% Above 30%
Less than 10%
10% to 30%
Above 30%

ANALYSIS:

In this graph, 18.6% of respondents get less than 10% return, 27.1% of the respondents

expect return above 30% and 54.3% respondents get return between 10-30%. So majority of respondents get 10-30% return.

12. How much risk you can take?

 

Frequency

Percent

Valid

Cumulative

 

Percent

Percent

Minimum risk

29

41.4

41.4

41.4

Moderate risk

30

42.9

42.9

84.3

High risk

11

15.7

15.7

100.0

Total

70

100.0

100.0

48

Risk

Minimum Risk Moderate Risk High Risk
Minimum Risk
Moderate Risk
High Risk

ANALYSIS:

From the above graph, out of 70 respondents, it is observed that 41.4% respondents can

bear minimum risk, 42.9% majority of respondents can bear moderate risk and 15.7% respondents can bear high risk.

13. Which information do you rely on?

 

Frequency

Percent

Valid

Cumulative

 

Percent

Percent

Prospectus/self analysis

22

31.4

31.4

31.4

Newspaper

12

17.1

17.1

48.6

Investment advisor

15

21.4

21.4

70.0

TV

11

15.7

15.7

85.7

Friends

10

14.3

14.3

100.0

Total

70

100.0

100.0

49

Information

Prospectus/self Analysis Newspaper Investment advisor TV Friends
Prospectus/self Analysis
Newspaper
Investment advisor
TV
Friends

ANALYSIS:

In the graph, out of 70 respondents, it is observed that 31.4% majority of respondents

collect information through prospectus/self-analysis, 17.1% respondents collect information through newspaper, 21.4% respondents take information through investment advisor, 15.7% respondents take information through TV and 14.3% least of respondents collect information through Friends.

14. What is the most important criterion for you for selecting a particular equity shares?

 

Frequency

Percent

Valid

Cumulative

 

Percent

Percent

Past performance

28

40.0

40.0

40.0

Service

20

28.6

28.6

68.6

Promoters Background

11

15.7

15.7

84.3

Any other

11

15.7

15.7

100.0

Total

70

100.0

100.0

50

Most Important Criterion

Past Performance Service Promoters Backgraound Any other
Past Performance
Service
Promoters Backgraound
Any other

ANALYSIS:

In

the

above graph,

40% of the respondents purchase or invest in Shares

for past

performance and 15.7% respondents purchase or invest in shares for promoter’s background and any other and 28.6% purchase or invest in shares for sevice.

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

 

Frequency

Percent

Valid

Cumulative

 

Percent

Percent

Satisfied

38

54.3

54.3

54.3

Dissatisfied

3

4.3

4.3

58.6

Neither Satisfied nor Dissatisfied

29

41.4

41.4

100.0

Total

70

100.0

100.0

51

Level of Satisfaction

Neither Satisfied nor Dissatisfied Satisfied Dissatisfied
Neither Satisfied nor
Dissatisfied
Satisfied
Dissatisfied

ANALYSIS:

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

16. What deficiencies do you find in your equity shares?

 

Frequency

Percent

Valid

Cumulative

 

Percent

Percent

Track record

16

22.9

22.9

22.9

Transparency

19

27.1

27.1

50.0

Service Quality

18

25.7

25.7

75.7

Any other

17

24.3

24.3

100.0

Total

70

100.0

100.0

52

Deficiencies in Equity Share

Track record Transparancy Service Quality Any other
Track record
Transparancy
Service Quality
Any other

ANALYSIS:

From the graph out of 70 respondents, 27.1% respondents are saying transparency is the

major deficiency in shares and 22.9% respondents are saying track record of other deficiencies in equity share, 24.3% respondents are saying that any other reason are

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

17. Is the commission charged by the trading site reasonable?

 

Frequency

Percent

Valid

Cumulative

 

Percent

Percent

Yes

44

62.9

62.9

62.9

No

26

37.1

37.1

100.0

Total

70

100.0

100.0

53

Commission Charged is Reasonable

Commission Charged is Reasonable Yes No ANALYSIS: From this graph, it is observed that 62.9% of
  • Yes

  • No

ANALYSIS:

From this graph, it is observed that 62.9% of respondents are saying commission charged by the trading site and 37.1% of the respondents are saying there is no commission charged by trading site.

FINDINGS

Retired respondents are least interested into invest in Equity shares because they want

regular income. Majority of 20 – 40 years respondents are interested into invest in equity shares because

they want capital appreciation. 12.5% of the respondents don’t invest into equity shares because they earn more profit

through FD, mutual funds, property & insurance. Majority of respondents invest into shares for secure future and tax saving

People rely more on information supplied by investment adviser & than by self analysis.

54

37.1% respondents are satisfied by trading site because there is no extra charge by this site. 54.3% people are satisfied with equity shares, 41.4% people are neither satisfied nor dissatisfied. The main problem that the people find with shares in lack of Knowledge. 28.6% people think that FD is more profitable than Shares. According to Survey 97.1% people think that the future of shares is bright. In India most of the people having lack of awareness about shares. 12.5% people were not considering investing in shares because they have had bad experience or they simply don’t have money to invest.

CONCLUSION

Through the research I found that shares are one of the important financial instruments for investment. People have shifted from traditional sources of investment to new financial instruments like Mutual funds, Equity shares and Commodities etc.

The study was conducted to fulfill the objectives; the information was gathered from the investors. This study was conducted on the investors of Patiala city only. Mostly respondents were on government jobs so they mostly prefer to equity shares and mutual funds. Because they think shares are more profitable than PPF, NSE & FD etc.

55

The main reason of investment in Shares is return, diversification & risk management but people are not well aware of these benefits. So if these people are provided required awareness & knowledge About share can act as a most preferred investment option.

SUGGESTIONS AND RECOMMENDATION

On the basis of survey conducted and study of secondary data, some problems were identified with the people, like lake of knowledge about shares, procedural complication etc. so following suggestions are give to Karvy stock broking ltd.

The Karvy stock Broking create mere awareness among people but still there are many

people who are not aware about shares. Karvy stock Broking should keep in view the recruitments of the rural sector also while

designing the schemes. To promote overall growth, investor should be strengthened.

56

In the bear market, there is a need to educate investor about risk – adjust return and total

portfolio return to enable them to take informed decision. Karvy stock Broking should develop a wide broking network.

The procedural complications should also be reduced.

People should be encouraged for investing for 3 – 6 years for good return.

LIMITATIONS OF THE STUDY

As the sample size is small, so the finding cannot be generalized. Respondent bias couldn’t be ignored.

This is a time consuming research method & the respondents did not have sufficient time

for giving information for such type of research. People were reluctant to give responses for such type of research.

57

People also did not give proper response for Questionnaire & interview, because of short

time.

Study is restricted to only Patiala City.

The people in high income band are not easily approachable under this method and to

that extent the data may prove inadequate.

The survey is totally depending on the response given by the respondents, which may

sometimes lead to wrong conclusions due to negligence of the people who are surveyed.

There is a limited length of questionnaires depth as in personal interviews.

BIBLIOGRAPHY

Books & Research Papers:

Avadhani. V.A. “Investment Management”, 3 rd Edition, Mumbai: Himalaya Publish

House, 1999. Bhalla, B.K. “Security, Analysis and portfolio Management”, 1 st Edition New Delhi:

S.chand & CO.Ltd., 2002.

58

Desai Vasant, ”Indian Financial System” Himalaya Publishing House, New Delhi. Fisher Donald E. and Jordan Ronald
Desai Vasant, ”Indian Financial System” Himalaya Publishing House, New Delhi. Fisher
Donald E. and Jordan Ronald j., “Security Analysis and Portfolio Management” Prentice
Hall of india, Pvt. Ltd. Sixth Edition, New Delhi.
Desigan Gnana, Kalaselvi S and Anuya L (2006), “Women Consumers Perception
Towards Investment: An empirical Study, “Indian Journal of Marketing, April.
International Journal of Multidisciplinary Research, Vol. 1 Issue8,
Journal of Law and Economics, Vol. 23
Gorden E. and Natrajan K. (2010), “Financial Markets and services”, Vikas publishing
House pvt. Ltd., New Delhi.
Pandian, Punivathy (2013) “financial service and management”, vikas publishing house
pvt ltd, New Delhi.
Kothari C.R. (2003), New Age International pvt. Ltd., Research Methodology.
 Kothari C.R. (1997) Second edition, research methodology – methods and techuniques.
 M.Y. KHAN, Financial Services, “Tata McGraw-hill Publishing Company Limited
(2005), 3 rd edition.”
 SEBI – NCAER,2000, Survey of Indian Investors, SEBI, Mumbai.
 V.A.Avadhani (2003). Himalaya publicities, Security Analysis And portfolio
Management.
Karvy – The Finapolis
Karvy – Business Associates Manual
The Economic Times
Business Standard
Fact sheet and statements of various funds houses.

Web Sites:

59

 www.investopedia.com  www.amfiindia.com  www.altavista.com  www.sebi.gov ANNEXURE Name:- Address:- Mobile no.:- E-mail address:- 60
www.investopedia.com
www.amfiindia.com
www.altavista.com
www.sebi.gov
ANNEXURE
Name:-
Address:-
Mobile no.:-
E-mail address:-
60
  • 1. Occupation:-

Government Employee

Private Employee

Businessman

Retired

  • 2. Age Group

20 - 40

40 – 60

Above 60

  • 3. Education

Illiterate (uneducated)

Metric/Senior Secondary

Graduation

Post-graduation

Doctorate

  • 4. Annual Household Income

Less than 1.5 lakh

1.5 to 3 lakh

3 to 5 lakh

Above 5 lakh

  • 5. You are interested in investment

Yes

No

  • 6. Where do you make investment?

Fixed deposit

Property

Share

Insurance

Mutual funds

  • 7. Which is more profitable?

Fixed Deposit

Mutual fund

Equity Share

Commodity

  • 8. What are your objective/ motive behind investment?

61

 

Long term profit

Regular profit

Secure future

Tax benefits

How do you prioritize the reason for investment?

9.

[Rank from 1 to 5, 1 being highest priority]

 

Saving for future

Tax saving

Return

Future outlook

Brand value

Risk factor

  • 10. Is investment in equity share safe?

 

Yes

No

  • 11. What is your expected return?

 

Less than 10%

10% to 30%

Above 30%

  • 12. How much risk you can take?

 

Minimum risk

Moderate risk

High risk

  • 13. Which information do you rely on?

Prospectus/self analysis

Newspaper

Investment advisor

TV

Friends

  • 14. What is the most important criterion for you for selecting a particular Equity Share?

Past Performance

Service

Promoters Background

Any Other

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What is your level of satisfaction from your Equity share?

15.

 

Satisfied

 

Dissatisfied

Neither Satisfied nor Dissatisfied

What deficiencies do you find in your Equity Share?

16.

 

Track record

 

Transparency

Service Quality

Any other

Is the commission charged by the trading site reasonable?

17.

 

Yes

No

 

DAILY TRAINING REPORT

15/1/2016

This is my first day of training. Today I introduce myself to Mr.

Friday

Gagandeep Singh(Branch Manager of Karvy Stock Broking ltd.Patiala)

16/1/2016

Today I study about what kind of work doing in the Karvy. Also take

Saturday

 

part in some kind of work.

25/1/2016

Today we study about market hours, first trade & last trade. We also

Monday

 

studied about intraday trading & delivery.

27/1/2016

Today we study about Bulk purchasing & futures. We also study about

Wednesday

NSE & BSE ( Nifty 50 & Sensex 30 )

28/1/2016

Today we study about top

10 Gainers & Losers of nifty and watch

Thursday

market variations.

29/1/2016

Today we studied about LTP, % change, Net Change, Trade Qty ,

Friday

Value, open, high, low, previous close & latest Ex date etc.

30/1/2016

Today we know about Karvy Demat Services Like Account opening

Saturday

 

Process, account open charges, AMC, CDSL, NSLD etc.

1/2/2016

 

Today we know about trading account. Advantages of demat account.

Monday

Uses of trading and demat account. Services provided by Karvy.

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2/2/2016

Today we go to IOC Nabha. For the purpose of account opening

Tuesday

3/2/2016

Today we go to IOC Nabha. For the purpose of account opening

Wednesday

4/2/2016

Today we go to IOC Nabha. For the purpose of account opening

Thursday

5/2/2016

Today we set a canopy at the front of Karvy Stock Broking Patiala.

Friday

6/2/2016

Today we set a canopy at the front of Karvy Stock Broking Patiala.

Saturday

Also open some new account.

8/2/2016

Today we go to IOC Nabha. For the purpose of account opening

Monday

9/2/2016

Today we set a canopy at the front of Karvy Stock Broking Patiala.

Tuesday

Also open some new account.

10/2/2016

Today we set a canopy at the front of Karvy Stock Broking Patiala.

Wednesday

Also open some new account.

11/2/2016

Today we go to IOC Nabha. For the purpose of account opening

Thursday

12/2/2016

Today we set a canopy at the front of Karvy Stock Broking Patiala.

Friday

Open some new accounts.

13/2/2016

Today we punched some accounts.

Saturday

15/2/2016

Calling for new accounts. Attend some clients.

Monday

16/2/2016

Calling for guiding the clients and advised them for using of demat

Tuesday

account.

17/2/2016

Today we calling to IOC employees which was recently opened there

Wednesday

accounts.

18/2/2016

Today we go to Dena bank and meet their employees. Give them a

Thursday

presentation about Karvy.

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19/2/2016

Today we go to Dena bank and meet their employees. Give them

Friday

presentations about Karvy demat service & offers.

20/2/2016

Today we set a canopy at the front of Karvy Stock Broking Patiala.

Saturday

Also open some new account.

22/2/2016

Watch gainer, loser & global markets. Open some new & Re-KYC

Monday

accounts. Attend some new client.

23/2/2016

Watch gainer, loser & global markets. Open some new & Re-KYC

Tuesday

accounts. Attend some new client.

24/2/2016

Watch gainer, loser & global markets. Open some new & Re-KYC

Wednesday

accounts. Attend some new client.

25/2/2016

Today we set a canopy at the front of Karvy Stock Broking Patiala.

Thursday

Also open some new account.

26/2/2016

Today we set a canopy at the front of Karvy Stock Broking Patiala.

Friday

Also open some new account.

27/2/2016

Today we set a canopy at the front of Karvy Stock Broking Patiala.

Saturday

Also open some new account.

29/2/2016

Watch gainer & losers of the day & foreign markets. Calling to Re-

Monday

KYC customers.

1/3/2016

Watch gainer & losers of the day & foreign markets. Calling to Re-

Tuesday

KYC customers.

2/3/2016

Watch gainer & losers of the day & foreign markets. Attend some calls

Wednesday

of clients.

3/3/2016

Watch gainer & losers of the day & foreign markets. Calling to Re-

Thursday

KYC customers.

4/3/2016

Watch gainer & losers of the day & foreign markets. Calling to Re-

Friday

KYC customers.

5/3/2016

Meet with new clients and open there accounts.

Saturday

8/3/2016

Today we go to Oriental Bank of Commerce and give a presentation to

Tuesday

their employees.

65

9/3/2016

Watch gainer & losers of the day & foreign markets. Attend call of

Wednesday

clients.

10/3/2016

Today we go to Oriental Bank of Commerce meet with some persons

Thursday

and tell them about Karvy

11/3/2016

Watch gainer & losers of the day & foreign markets. Attend call of

Friday

clients.

12/3/2016

Go to clients home and give a presentation about software of Karvy

Saturday

and installed software on their laptop.

14/3/2016

Watch gainer & losers of the day & foreign markets. Attend call of

Monday

clients.

15/3/2016

Watch gainer & losers of the day & foreign markets. Attend call of

Tuesday

clients.

16/3/2016

Today we go to Oriental Bank of Commerce. New officer colony

Wednesday

Patiala

17/3/2016

Watch gainer, loser & global markets. Open an account. Attend some

Thursday

new client.

18/3/2016

Watch gainer, loser & global markets. Open some new & Re-KYC

Friday

accounts. Attend some new client.

19/3/2016

Go to field and meet with some new clients. Give a presentation to

Saturday

client about services of Karvy.

21/3/2016

Watch gainer, loser & global markets. Attend some client. Calling to

Monday

clients. Give rate of shares to clients.

22/3/2016

Watch gainer, loser & global markets. Calling to new client which

Tuesday

persons are interested to deal with Karvy.

23/3/2016

Go to client’s home and open some accounts also give them aa

Wednesday

presentation about services of Karvy.

28/3/2016

Leave______________

Monday

29/3/2016

Watch gainer, loser & global markets. Attend some client. Calling to

Tuesday

clients. Give rate of shares to clients.

66

30/3/2016

Attend Clients. Calling to Clients.

Wednesday

31/3/2016

Give rate of shares to clients through calling.

Thursday

1/4/2016

Today is very important day for us. Area head & cluster head came in

Friday

the branch and suggest us about attend the clients.

2/4/2016

Today we set a canopy in the front of Dena Bank. And open Some new

Saturday

Accounts

4/4/2016

Calling to clients and head office send us a date of Professors of

Monday

Punjabi University for calling.

5/4/2016

Today we call 200 professors of Punjabi university for the purpose of

Tuesday

new demat account opening.

6/4/2016

Watch gainer, loser & global markets. Attend some client. Calling to

Wednesday

clients. Give rate of shares to clients.

7/4/2016

Watch gainer, loser & global markets. Attend some client. Calling to

Thursday

clients. Give rate of shares to clients.

8/4/2016

I attend many calls of clients for the trading purpose.

Friday

9/4/2016

Today is very hard day because head office gives a target to us for 3

Saturday

new accounts in one day. I achieve my target at the end.

11/4/2016

Today I opened my own account. Attend many calls of clients. Open a

Monday

new account.

12/4/2016

Watch gainer, loser & global markets. Calling to new client which

Tuesday

persons are interested to deal with Karvy.

13/4/2016

Go to client’s home and open some accounts also give them aa

Wednesday

presentation about services of Karvy.

18/4/2016

Leave______________

Monday

20/4/2016

Today is my last Day of Training in Karvy Stock Broking Patiala.

Wednesday

67