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Batch of 2010-12
This is to certify that Jeevan Yadav a student of MMS- II from NCRD’s Sterling Institute of
Management Studies has done his semester project at Motilal Oswal Securities Limited from
The project work entitled “INVESTOR BEHAVIOR ANALYSIS” embodies the original work
done by Jeevan Yadav during his above full semester project training period.
Date:
(Finance Lecturer)
CERTIFICATE OF ORIGIONALITY
NCRD’s Sterling Institute of Management StudiesPage 3
I, Jeevan Yadav, Roll No. 95 of 2010-12, a full time bonafide student of Second year of Master
of Management Studies (MMS) Programme of Sterling Institute of Management Studies, Nerul,
Navi Mumbai, affiliated to University of Mumbai. I hereby certify that this project work carried
out by me, at Motilal Oswal Securites Limited the report submitted in partial fulfillment of the
requirements of the programme is an original work of mine under the guidance of the industry
mentor Mr Parag Nagda and faculty mentor Prof. Aradhana Tiwari and is not based or
reproduced from any existing work of any other person or on any earlier work undertaken at any
time or for any other purpose, and has not been submitted anywhere else at any time.
ACKNOWLEDGEMENT
This is the moment, which gives me opportunity to thanks everyone who has contributed in
my practical training at Motilal Oswal Securities Ltd as part of my study.
First of all I would like to express my gratitude to the management of NCRD’s Sterling Institute
of Management Studies , Dr. Anjan Maiti and Dr. R.K. Srivastava for giving an opportunity
and boosting moral during the training period.I would like to express my sincere thanks to Prof.
Aradhana Tiwari (Faculty guide) and Prof. Rakhi Srivastava (HOD Finance Department) for
helping me in various aspects the study.
I am deeply indebted to Mr. Parag Nagda (Branch Manager, MOSL Seawoods) for giving me
an opportunity and guidance, invaluable help and cooperation to successfully complete the
project.
I am grateful to Mr. Nimit Sethi (Business Development Manager, MOSL) for his help and
cooperation. I am very thankful to the management and staff of Motilal Oswal Securities Limited
for their invaluable cooperation during my summer internship programme.
Last but not the least I would like to express my profound gratitude to my family and friends
who have indirectly encouraged me in completing this study.
Date: …………………
TABLE OF CONTENTS
LIST OF TABLES
LIST OF CHARTS
EXECUTIVE SUMMARY
A survey was conducted to gather primary data to judge the factors that influence investors
before they invest in any of the investment tools and thus the first part of the report scrutinizes
the investor’s perception and analyzes the relation between the features of the products and the
investors’ requirements. With this back ground an attempt has been made in this paper to
categorize investors based on various demographic factors such as age, sex, income level and
occupation. It also contains demographic factors and psychographic factors of an investor.
Which clearly gives idea how age, gender, income and occupation plays an important role in
taking any type of investment decision.
INDUSTRY OVERVIEW
An informal group of 22 stockbrokers began trading under a banyan tree opposite the Town Hall
of Bombay from the mid-1850s, each investing a (then) princely amount of Rupee 1. This
banyan tree still stands in the Horniman Circle Park, Mumbai. In 1860, the exchange flourished
with 60 brokers. In fact the 'Share Mania' in India began with the American Civil War broke and
the cotton supply from the US to Europe stopped. Further the brokers increased to 250. The
informal group of stockbrokers organized themselves as the The Native Share and Stockbrokers
Association which, in 1875, was formally organized as the Bombay Stock Exchange (BSE).
BSE was shifted to an old building near the Town Hall. In 1928, the plot of land on which the
BSE building now stands (at the intersection of Dalal Street, Bombay Samachar Marg and
Hammam Street in downtown Mumbai) was acquired, and a building was constructed and
occupied in 1930.
Premchand Roychand was a leading stockbroker of that time, and he assisted in setting out
traditions, conventions, and procedures for the trading of stocks at Bombay Stock Exchange and
they are still being followed.
Several stock broking firms in Mumbai were family run enterprises, and were named after the
heads of the family.
The following is the list of some of the initial members of the exchange, and who are still
running their respective business:
Brijmohan Laxminarayan
In 1956, the Government of India recognized the Bombay Stock Exchange as the first stock
exchange in the country under the Securities Contracts (Regulation) Act.
The most decisive period in the history of the BSE took place after 1992. In the aftermath of a
major scandal with market manipulation involving a BSE member named Harshad Mehta, BSE
responded to calls for reform with intransigence. The foot-dragging by the BSE helped radicalize
the position of the government, which encouraged the creation of the National Stock Exchange
(NSE), which created an electronic marketplace. NSE started trading on 4 November 1994.
Within less than a year, NSE turnover exceeded the BSE. BSE rapidly automated, but it never
caught up with NSE spot market turnover.
The second strategic failure at BSE came in the following two years. NSE embarked on the
launch of equity derivatives trading. BSE responded by political effort, with a friendly SEBI
chairman (D. R. Mehta) aimed at blocking equity derivatives trading. The BSE and D. R. Mehta
succeeded in delaying the onset of equity derivatives trading by roughly five years. But this
trading, and the accompanying shift of the spot market to rolling settlement, did come along in
2000 and 2001 - helped by another major scandal at BSE involving the then President Mr. Anand
Rathi. NSE scored nearly 100% market share in the runaway success of equity derivatives
trading, thus consigning BSE into clearly second place. Today, NSE has roughly 66% of equity
spot turnover and roughly 100% of equity derivatives turnover.
Stock Exchange provides a trading platform, where buyers and sellers can meet to transact in
securities.
Capital Market: The capital market is divided into two segments which are as following:
b) Secondary Market
Primary Market: Most companies are usually started privately by their promoters. However the
promoters’ capital and the borrowed capital from banks or financial institutions might not be
sufficient for running the business over the long term. That is when corporate and the
government looks at the primary market to raise long term funds by issuing securities such as
debt or equity. These securities may be issued at face value, at premium or at discount. Let us
understand the meaning of these terms:
Face Value: Face value is the original cost of the security as shown in the
certificate/instrument. Most equity shares have a face value of Rs. 1, Rs. 5, Rs. 10 or Rs.
100 and do not have much bearing on the actual market price of the stock. When issuing
securities, they may be offered at a discount or at a premium.
Premium: When the security is offered at a price higher than the face value it is called a
premium
Discount: When the security is offered at a price lower than the face value it is called a
discount.
Secondary Market: The secondary market provides liquidity to the investors in the primary
market. Today we would not invest in any instrument if there was no medium to liquidate our
position. The secondary markets provide an efficient platform for trading of those securities
initially offered in the primary market. Also those investors who have applied for shares in an
IPO may or may not get allotment. If they don‘t then they can always buy the shares (sometimes
at a discount or at a premium) in the secondary market. Trading in the secondary market is done
through stock exchange. The Stock exchange is a place where the buyers and sellers meet to
trade in shares in an organized manner.
Provides Indices
There are two leading stock exchanges in India which help us trade are:
National Stock Exchange: National Stock Exchange incorporated in the year 1992
provides trading in the equity as well as debt market. Maximum volumes take place on
NSE and hence enjoy leadership position in the country today
Bombay Stock Exchange: BSE on the other hand was set up in the year 1875 and is the
oldest stock exchange in Asia. It has evolved in to its present status as the premier stock
exchange. At BSE you will find some scripts listed that are not available on NSE. Also
BSE has the largest number of scripts which are listed.
INTRODUCTION
Motilal Oswal Securities Ltd. (MOSL) was founded in 1987 as a small sub-broking unit, with
just two people running the show. Focus on customer-first-attitude, ethical and transparent
business practices, respect for professionalism, research-based value investing and
implementation of cutting-edge technology has enabled us to blossom into an over 1600 member
team.
Today it has a well diversified financial services firm offering a range of financial products and
services such as Wealth Management, Broking & Distribution, Commodity Broking, Portfolio
Management Services, Institutional Equities, Private Equity, Investment Banking Services and
Principal Strategies.
It has a diversified client base that includes retail customers (including High Net worth
Individuals), mutual funds, foreign institutional investors, financial institutions and corporate
clients. It headquartered in Mumbai and as of June 30th, 2011, had a network spread over 586
cities and towns comprising 1,607 Business Locations operated by our Business Partners and us.
As at June 30th, 2011, we had 722,303 registered customers.
Its institutional business unit has relationships with several leading foreign institutional investors
(FIIs) in the US, UK, Hong Kong and Singapore. In a recent media report it was rated as one of
the top- 10 brokers in terms of business transacted for FIIs.
The retail business unit provides equity investment solutions to more than 200000 investors
through 1160 outlets spanning over 363 cities. These solutions are provided by a force of over
2000 employees and over 780 Business Associates. We provide advice-based broking (equities
and derivatives), portfolio management services (PMS), e-Broking, depository services,
commodities trading, IPO and mutual fund investment advisory services.
a) Motilal Oswal Investment Advisors Pvt. Ltd. is our Investment Banking arm with
collective experience of over 100 years in investment banking/corporate banking and
advisory services.
c) Motilal Oswal Venture Capital Advisors Private Limited has launched the India
Business Excellence Fund (IBEF), a US$100 mn India focused Private Equity Fund
d) Motilal Oswal Securities Ltd. (MOSt) our services include equities, derivatives, e-
broking, portfolio management, mutual funds, commodities, IPOs and depository
services.
Motilal Oswal Securities Ltd (MOSt) History
The story of MOSt goes back many years, when Mr. Motilal Oswal and Mr.
Raamdeo Agrawal met each other as students in a Mumbai suburban hostel in the early eighties.
Both the young chartered accountants hailing from a rural & an unpretentious background had a
common dream viz'to build a professional organization with strong value systems, to provide
reliable & honest investment advice to investors'. Thus was born their first enterprise called
"Prudential Portfolio Services" in 1987.
Mr. Motilal Oswal and Mr. Raamdeo Agrawal lay the foundation of a great partnership
by starting a sub-broking firm. The venture stands out from the rest due to their approach
of Research-based broking even when sub-brokers.
1990:
After just three years in the business,”Motilal Oswal” is formed through acquisition of
membership on The Bombay Stock Exchange (BSE). Three more memberships taken in
later years.
1994:
Wealth Creation Study started. First of its kind study initiated to identify biggest and
fastest wealth creating companies in Indian Stock markets.
1998:
Mr. Motilal Oswal joins the Governing Board of The Stock Exchange, Mumbai.
1999:
Mr. Raamdeo Agrawal starts attending legendary billionaire investor Warren Buffett’s
Annual General Meetings of Berkshire Hathway Inc. He still continues to attend it every
year.
The Wealth Creation Study started in 1996 culminates into Wealth Creation Seminar and
Awards function in 1998.
First Stock Broking house to brand its services as a research and advice based broker.
Received the Asia Money award for the Best Domestic Equity house.
Both Mr. Motilal Oswal and Mr. Raamdeo Agrawal receive Rashtriya Samman Patra
from Central Board of Direct Taxes for being amongst the top 50 tax payers in India
from FY94-FY98.
Legendary marketing guru Shunu Sen’s services taken to revitalize retail marketing
strategy and branding efforts.
Starts offering Derivatives products and advisory services on both BSE as well as NSE.
2002:
Mr. Navin Agarwal, Head of Equity Research & Institutional sales, inducted in the Board
of Directors.
Received the Asia Money Award - 2nd best among Indian Brokerage firms.
Value PMS delivers a whopping 160% post tax returns for the period ended April 2004.
2005:
Launches two new Portfolio Management Schemes - Value Hedging for derivatives and
Discover Value for the Rs.5 lakh to Rs.50 lakh category.
2006:
Motilal Oswal Financial Services Ltd ties-up with State Bank of India to offer online
trading.
Motilal Oswal Financial Services Ltd was declared as the Best Research House for Indian
Stocks in 2006 as per AQ Research.
Avaya Global ranked MOSL as the second best company in the Financial Sector for
customer responsiveness.
Value PMS gives 390% returns to its investors between Feb 2003 and March 2006.
2007:
The Strategic partnership between MOSL and SBI - EZtrade - reaches an important
milestone i.e. in less than a year it has managed to sign up more than 10,000 customers.
2008:
Motilal Oswal's India Business Excellence Fund raised USD 125 million, 25%
higher than the initial target of USD 100 million.
Motilal Oswal Financial Services purchased its new corporate office building based in
Prabhadevi, the heart of Mumbai city with a planned usable area of over 2, 00,000 sq ft.
The 14th Motilal Oswal Wealth Creation Study presentation held in Mumbai in
December 2009 and was covered live on CNBC TV18.
MOSL ranked No. 2 (Best Local brokerage) in the Asia Money Brokers Poll 2009 and
No. 2 (Best Indian Brokerage House) category by Institutional Investor.
2010:
The 15th Motilal Oswal Wealth Creation Study presentation was held in Mumbai on 15th
December 2010 and was covered live on CNBC TV18
Motilal Oswal Securities bagged the Best Performing Equity Broker (National) Award at
CNBC TV18 Financial Advisor Awards 2010 held in Mumbai. CNBC TV18 organized
Financial Advisor Awards 2010, in partnership with UTI MF. These awards are
authoritative evaluation backed by a robust methodology powered by India’s leading
rating house, ICRA.
Motilal Oswal Securities entered into a strategic alliance with Barclays Bank, for an
equity trading platform for its (Barclays) customers. This alliance provides Barclays
customers with the option to invest in equities, derivatives and IPOs, through MOSL.
Motilal Oswal Securities Limited bagged the QualTech Prize for Improvement - 2010 in
the Services Category on September 24, 2010. The Award winning project was a DMAIC
project done in Account Opening Department to reduce Account Opening Turnaround
Time.
Ashutosh Maheshvari, CEO, MOIAPL, bagged the “India M&A Investment Banker
award”, and Acquisition of Equipav (Brazil) by Shree Renuka Sugars (India) facilitated
by MOIAPL won the “ASIA PACIFIC CROSS-BORDER DEAL of the YEAR” at the
MOSt Shares M50 ETF NFO which was open for subscription from June 30, 2010 till
July 19, 2010 raised over Rs.235 crores, making it the largest amount raised during the
NFO by any equity ETF in the past 5 years (Data source: Value Research Online.com).
Motilal Oswal Asset Management launches its maiden mutual fund offering - MOSt
Shares M50.
2011:
Motilal Oswal in association with Zee Business hosted the first of its series of seminars
under its investor’s education initiative called Investor Ki Kahani Usi Ki Zubani on
July 2, 2011 at BSE in Mumbai. The seminar saw a colossal turnout with more than 750
investors attending the session.
Mr. Raamdeo Agrawal was honoured with an award for Special Contribution to Indian
Capital Market by Zee Business at the ‘INDIA’S BEST MARKET ANALYST
AWARDS 2011 on April 29, 2011.
Our Analysts Mr. Dhirendra Tiwari & Mr. Harshad Borawake won the Best Market
Analyst Award for the categories Equity-Sectorial-Infrastructure and
Motilal Oswal MOSt Shares NASDAQ 100 - India’s First US Equities Based ETF gets
listed on NSE and BSE on 31st March, 2011.
Motilal Oswal Securities won 4 awards at the ET Now Starmine Analyst Awards 2010-
2011. This puts MOSL amongst the Top 3 Award winning Brokers at the ET NOW
Starmine Analyst Awards 2010-2011.
Motilal Oswal Mutual Fund launches MOSt Shares NASDAQ 100 - India’s first US
Equities based ETF tracking the NASDAQ-100 Index.
Motilal Oswal Mutual Fund’s MOSt Shares M50 bagged the ‘Most Innovative Fund of
the Year’ Award at CNBC TV18-CRISIL Mutual Fund Award 2011 held in Mumbai.
Motilal Oswal MOSt Shares Midcap 100 ETF – India’s First Midcap Index ETF; based
on CNX Midcap Index was listed on NSE on February 4, 2011.
Motilal Oswal Asset Management launches MOSt Shares M100 ETF - India’s First
Midcap ETF; based on CNX Midcap Index.
Mr. Motilal Oswal is the promoter of Motilal Oswal Securities Ltd. He is a member of Institute
of Chartered Accountants of India and started the business along with the co-promoter Mr.
Raamdeo Agarwal in 1987.
Achievements:
Co-Author of the book "CORPORATE NUMBERS GAME" in 1986
Joint Managing Director of Motilal Oswal Securities Ltd Author of annual "Wealth Creation
Study”
07/23/2011
At the second ASIA’s BEST EMPLOYER BRAND AWARDS held in Singapore on
22nd July, 2011, Motilal Oswal Financial Services bagged awards in two categories:
Award for Excellence in HR through Technology & Award for Managing Health at
Work.
05/13/2011
Motilal Oswal Mutual Fund’s MOSt Shares M50 bagged the ‘Most Innovative Fund of
the Year’ Award at CNBC TV18-CRISIL Mutual Fund Award 2011 held in Mumbai.
12/09/2010
Motilal Oswal Securities Ltd. was adjudged as the 'Best Performing Equity Broker
(National)' at the CNBC TV18 Financial Advisor Awards - 2010
09/24/2010
Motilal Oswal Investment Banking wins the “Asia-Pacific Cross Border Deal of the
Year” at the ASIA-PACIFIC M&A ATLAS AWARDS in 2010
03/16/2008
MOSL creates one of India's largest Equity Dealing & Advisory rooms, spread over
26,000 sq ft in Malad, Mumbai
Products
Price
Place
Promotion
Equity
Derivatives
Online trading
Insurance distribution
Commodities
IPOs
Depository services
Asset Management
Investment Banking
Wealth Management
MOFSL introduced a new brand philosophy. The relentless focus on research and insight, which
is the DNA of the company, has manifested itself in the brand idea - ‘Knowledge First’. This
simple philosophy of 'Knowledge First' has been brought alive through a multimedia campaign
in TV, print, outdoor and the web.
WEALTHWISE
PURPLE
Purple is their recently launched Private Banking brand that provides holistic wealth
management solutions for Individual, Family and Business needs of High Net Worth Individuals
(HNIs). To provide these clients a gold standard private banking experience, they introduced a
series of Purple lounges in different cities.
HR at Motilal Oswal, on the one hand strives to make every employee of the organization its
brand ambassador and on the other hand make the Motilal Oswal brand stand for the best people
practices.
The 3 pillars of HR strategy are:
Technology: The recruitment process has been enabled and implemented using the
existing HR software of MyZone. This has been implemented in Mumbai during the
current year and will be rolled out across all regions during this year.
Brand recognition
Execution risk
RESEARCH TOPIC
Investor behavior analysis on the basis of demographics and psychographics factors of the
investor considering the parameters like age, gender and income groups and also some
psychological parameters that will attract the investor towards that particular investment. This
analysis describes why an investor will opt a particular investment and the motive behind the
investment and other objectives of investment.
INTRODUCTION
There are several parameters that an investor will think before investing like return, flexibility
and etc but the markets will face a question mark in knowing the pulse of an investor. So a study
must be made on the demographics and psychographics of the investor such that the market can
know the pulse of an investor and can act upon it. These are the results of such a survey that was
made on the investor. Investor behavior analysis deals with analyzing the behavior of an investor
Psychographic: This includes Activity, Interest, and Opinion (AIO) Attitudes Values of an
investor when he looks at a particular investing option.
By and large, most investors have eight common needs from their Investments are as following:
1. Security of original capital: The chance of losing some capital has been a primary need.
This is perhaps the strongest need among investors in India, who have suffered regularly
due to failures of the financial system.
3. Comfort factor: This refers to the peace of mind associated with an investment.
Avoiding discomfort is probably a greater need than receiving comfort. Reputation plays
an important part in delivering the comfort factor.
5. Life Cover: Many investors look for investments that offer good return with adequate
life cover to manage the situations in case of any eventualities.
6. Income: This refers to money distributed at intervals by an investment, which are usually
used by the investor for meeting regular expenses. Income needs tend to be fairly
constant because they are related to lifestyle and are well understood by investors.
7. Simplicity: Investment instruments are complex, but investors need to understand what is
being done with their money. A planner should also deliver simplicity to investors.
8. Ease of withdrawal: This refers to the ability to invest long term but withdraw funds
when desired. This is strongly linked to a sense of ownership. It is normally triggered by
a need to spend capital, change investments or cater to changes in other needs. Access to
a long-term investment at short notice can only be had at a substantial cost.
9. Communication: This refers to informing and educating investors about the purpose and
progress of their investments. The need to communicate increases when investments are
threatened.
Perfect investment would have been achieved if all the above-mentioned needs had been met to
satisfaction. But there is always a trade-off involved in making investments. As long as the
investment strategy matches the needs of investor according to the priority assigned to them, he
should be happy.
The Ideal Investment strategy should be a customized one for each investor depending on his
risk-return profile, his satisfaction level, his income, and his expectations. Accurate planning
After understanding the concept of investment, the investors would like to know how to go about
the task of investment, how much to invest at any moment and when to buy or sell the securities,
This depends on investment process as investment policy, investment analysis, valuation of
securities, portfolio construction and portfolio evaluation and revision. Every investor tries to
derive maximum economic advantage from his investment activity. For evaluating an investment
avenues are based upon the rate of return, risk and uncertainty, capital appreciation,
RESEARCH PROBLEM
To know the investors' profile with respect age, gender and income groups and also some
psychological parameters that will attract the investor towards that particular investments.
To find the reason why an investor opt a particular investment and the motive behind the
investment
HYPOTHESIS MADE WHILE RESEARCH
This hypothesis claim that the market situation is in favor of investor and no certain crisis exists
in market which can affect investors to invest in stock market.
RESEARCH METHODOLOGY
SAMPLING
The type of sample considered in this was convenient random sampling 100 persons in the Navi
Mumbai were drawn at random from investor associated with MOSL through telephonic
interview. The area of the study has covered different parts of Navi Mumbai where all classes of
people are living.
Research design: Descriptive Research
Sources of data: Primary Data
Secondary Data
Sampling Design: Convenience Sampling
Sample Size: 100
Tools for analysis
a) Percentage analysis
I. The motive behind an investor based on the basis of gender and age
groups.
Table-1
50.00%
45.00%
40.00% Chart-1
35.00% Real Estate Comments:
Post Office Schemes
30.00%
Mutual Funds
25.00% Insurance(ULIPS)
42.8% of
20.00%
Shares the men at
Fixed Deposits
15.00% Gold 20-30 ages
10.00% are
5.00% choosing
0.00% high yield
returns and
it is their motive because at this age his ideas will be running around luxurious life. So he
will be ready to take higher amount of risk to get good returns.
Where 66.66% of men in 30-50years of age are preferring security because they will have
a family at this age and their ideology will look at safeguarding the future of their
children and to make them look happy, generally being a parent he will be planning for
Majority of the men who cross the age group of 50 prefer high yield return (50%) and
40% of them prefer security.
Women are good at planning and are conservative in nature and they are focusing for
secured future. This can be seen in women of 20-50 age groups. Because generally a
woman gets married at the age of 23 so her thinking will always be about her family and
their future. Even if she is not married she has a firm idea of securing her future because
she being a good planner always thinks about the future and will always prefer investing
in such options which are less risky.
Whereas women who have crossed 50years of age are focusing at high yield returns
because they are not having any burdens on them and their prime ideology is to give
something to her next generation so she is now ready to take risks for the sake of getting
higher returns. Here we can see a sea change in her mentality where she is becoming
aggressive from a conservative personality
Majority of the women are found to be conservative where her prime ideology is to have
secured return and women are found to be aggressive once they cross the age of 50 where
they are free from several economical burdens and family pressures as their children start
working somewhere and are done with their education and the family has good source of
income, so she is turning into an aggressive investor.
45.00%
40.00%
35.00%
Real Estate
30.00% Post Office Schemes
Mutual Funds
25.00% Insurance(ULIPS)
Shares
20.00% Fixed Deposits
Gold
15.00%
10.00%
5.00%
0.00%
Charts -2
Comments:
Male:
Majority of the men in 20-30 age group are giving preference to real estate and shares as
there motive is high yield returns. Generally there is much risk involved in real estate as
the prices of the land keeps fluctuating. Even then men are interested in investing on real
estate because of its return. It is known that shares is a risky trade and is compared to
gambling but it has its taboo because of the returns. So men are ready to take the risk by
investing in real estate and shares only by looking at the returns that they get.
50 and above age groups are preferring real estate as we have seen that they are interested
in high yield returns. Generally people at this age group are investing in real estate with
an ideology of giving a home to their next generations and also because of some ancestral
beliefs in India which say that investing in land is always safe. They are interested in real
estate because they can have a fixed asset in hand and can serve their next generations to
cash upon it which can match their unexpected needs.
Female:
Women at 20-30 age groups prefer mutual funds because compared to shares there is
lesser risk involved in mutual funds. Mutual funds offer a return ranging between 10-20%
per annum and are safe because they are handled by good companies and are maintained
by professionals. There is less risk involved in this area of investment as it has some
fixed calculations and is handled properly by the mutual fund companies so as to sustain
in the market and to attract more number of investors. Companies like UTI and others are
found to be the masters in this area and are having happy customers.
Where 30-40 age group women prefer fixed deposits, insurance and gold. Though the
return is less in fixed deposits, ULIPs they are interested in investing here because there
is less risk involved in these areas. Gold also has less risk when compared to other
investing options as it is a onetime investment and majority of them feel it as a fixed
asset.
Like 30-40 age group women 40-50 age group women also prefer post office schemes
and insurance (ULIPS) as they are secured.
Table-3
80.00%
70.00%
60.00% Power
IT
50.00%
Banking
Automobile
40.00%
FMCG
30.00% Others
20.00%
10.00%
0.00%
Chart-3
Comments:
Male:
Men at 20-30 age groups prefer banking and power. It was observed that these industries
are performing well. Even new players are performing better and because of this scenario
there is much taboo for banking. There are several reforms which are taking place in
power sector and big players have entered this sectored because of which people are
planning to look at these sectors aiming for higher returns.
Female:
In addition to banking women at 20-40 age groups are preferring IT
Where 40-50 age groups are preferring banking
50 and above prefer same banking and power.
So it is found that banking sector is having charisma in the equity market at present and is
a growing industry. As our country’s employability is increasing the savings are also
increasing and at the same time several people are taking loans from banks so the market
of the banks is growing and even the charisma of it.
Table-4
80
70
60
Flexibility
50 Return
Managed by Professional
40 People
Risk Diversion
30 Less Expenses
20
10
Chart-4
Comments:
Male:
20-30 age group people are preferring flexibility and returns. This is because of the recent
financial slump down where their money is locked in some investments so they have
30-40 age group men prefer risk diversion as they are focused towards secured future and
maximum number of people of this age group has family and are willing to save for their
future needs.
40-50 age group men prefer return and flexibility as they are changing their idea towards
high yield returns and prefer flexibility to meet some unexpected financial problems.
Female
Female in the age groups of 20-40 and 50 and above prefer return as they are aggressive
in nature. Where 40-50 age group women prefer less expenses.
As most of investors are not clear with the investing decisions they tend to take wrong investing
decisions and finally they make huge loss. Hence MOSL should come up with some strategy
CONCLUSION
As we know that in today’s scenario only 2 % of India’s total population are aware of equity
market and are investing in stock market and remaining 98% are not aware of equity market and
even if they are aware of it still they don’t invest in equity market due some past news don’t even
invest in stock market. It’s due to their wrong perception towards equity market mechanism or
they are not well advised by the stock broker. Hence we can conclude that a stock broker should
know or have exact about an investor’s need, motive behind their investment etc before
approaching him/her.
If MOSL understands the logic behind the survey on investor behavior, it can easily frame up its
strategies for a nearby future and can even encourage the investor to invest in such investment
schemes in which he/she wants. It can cut the cost which is unnecessarily spent on the non-
potential customer. MOSL should offer a portfolio that matches with the ideology of a customer
then he easily agrees to invest in that portfolio without any hesitation. Any operation that is done
by the company loses its credibility if it is not customer friendly or if it is rejected by the
customer. So, this study helps the companies to build such products to its investors which are in
reach of his/her mindset and thinking.
As we know that 98% of India’s population don’t invest in stock market due to their personal
view on stock market or their behavioral pattern which don’t allow them to invest in stock
market. As this report is done taking demographic factors into consideration. Same ways one can
take economic factors into consideration for future study.
ANNEXURE
Name:
Address:
Gender:
Age:
1. What do you think are the best options do you prefer to invest your money? (Choose
any one option from the list)
a. Real Estate
b. Post Office Schemes
c. Mutual Funds
d. Insurance(ULIPS)
e. Shares
f. Fixed Deposits
g. Gold
2. What is your average annual income?
a. Less than 2,00,000
b. 2 ,00,000 – 4,00,000
c. 4,00,000 - 6,00,000
d. More than 6,00,000
4. In which Sector do you prefer and feel secure to invest in? (Choose any one option
from the list)
a. Power
b. IT
c. Banking
d. Automobile
e. FMCG
f. Others
5. What are the parameters that you consider while investing? (Choose any one option
from the list)
a. Flexibility
b. Return
c. Managed by Professional People
d. Risk Diversion
e. Less Expenses
REFERENCES:
Www.moneycontrol.com
WWW.motilaloswal.com
www.sebi.gov.in/annualreport
Www.nseindia.com
MAGAZINE:
Dalal Street