RESEARCH PROJECT REPORT ON COLLEGE STUDENTS PREFERENCE TO INVEST IN SHARE MARKET IN VARANASI CITY

Submitted in partial fulfilment of the requirement for two year POST GRADUATE DIPLOMA IN MANAGEMENT

(SCHOOL OF MANAGEMENT SCIENCES, VARANASI) SUBMITED TO Dr. Shardul Chaubey Reader, SMS SUBMITED BY Manoj Jain BBA 4th Sem.

Acknowledgement In the successful completion of this project inspiration and guidance of many people was involved. A mere form of acknowledgement would be demeaning the status of this whole effort which has had the blessings and supervision of the eminent person around me. First of all I would like to thank whole heartedly Mr. Shardul Chaubey Who was there to guide me at every step during the course of this project. She gave me tips for the improvement in project whenever required. Special thanks to Prof. P .N. Jha, Director, SMS for providing eminent direction. Apart from this I feel indebted to all faculty members of SMS, especially who have helped, developed the right kind of attitude and scholastic excellence in me. Last but not the least; I am very thankful to my parents, friends and all those persons who made this research project possible, for their consistent guidance and constructive criticism.

Manoj Jain BBA 4th Sem.

The conventional reason for investing in the stock market-perhaps offered with a bit less confidence now that we're in the midst of a stock market crash--is, "It offers higher returns." But that gets us ahead of ourselves. We can learn a lot by taking a couple of steps back and looking first at our financial goals. Most people have a long list of financial goals, starting with things like paying the rent, putting food on the table, keeping the lights turned on, and so on. Work your way down the list and you get to things like replacing the old car, buying a house, putting the kids through college, and (sooner or later) retiring. Most people's wants, if you list them all out like that, will exceed their expected lifetime earnings (even before including the Ferrari, apartment in Paris, yacht, and private jet). And

that's why people so automatically shoot for investments that offer the maximum returns--outsized returns are their only hope of satisfying all their wants. That thinking, though, leads people to make all sorts of poor choices. As a thought experiment, imagine someone whose wants could be comfortably satisfied by his or her income. (Since wants tend to expand without limit, I admit this is a bit tricky, but give it a try.) Such a person wouldn't need to invest at all (beyond establishing an emergency fund). In fact, investments would only make sense in the context of some particular goal--leaving a legacy for example. I'd like to suggest that this is really true of everyone. You just lead yourself astray if you line up all your wants on one side, and then create an aggressive portfolio on the other, hoping for some big wins to bridge the gap between your income and all the stuff you want. Note that I'm not suggesting that you target particular investments to specific goals--that's definitely the wrong approach. Your entire investment portfolio supports all your goals. Rather, the defect is in letting your wants grow without bound, putting you in a situation where the sum of your

income and the return to ordinary saving still doesn't add up to enough to satisfy them. Now, it's fine to have some out-of-reach desires. (For example, I'd like to have a private rail car, which although much cheaper than a private jet, is still likely to be forever beyond my means.) The problem is letting them get out of control in a way that distorts your entire investment strategy. My suggestion is that you classify your wants into the important ones and the unimportant ones--and that the portion of your portfolio that's going to fund the important ones needs to be conservatively invested.

Sr. 1 2 3 4 5 6 7 8 9 10 11 12

Particulars Preface Acknowledgement Executive summary Introduction about the company Research Objectives Research Methodology Data analysis Findings Limitations Conclusion Bibliography Annexure

Page no. 2 3 4 6 13 14 15 30 31 32 33 34

INTRODUCTION The lesson plan is divided into two activities. The Introductory Discussion provides context and vocabulary for the lesson and Activity 1 provides an application activity for extension of the concepts learned in the lesson. Activity 2 is intended to raise student awareness of the lesson subject, to introduce larger concepts, and to pose challenging questions.

Instructional Goal Students become familiarized with the impacts of international investments

Learning Outcomes

Students define the role of investment in an economy. Students compare and contrast the types of foreign investment. Students understand the differences between foreign direct investment and foreign portfolio investment. Students apply knowledge of foreign investment to understand current events

Materials

1. Copies of Handout 1, Questions on Foreign Investment Reading 2. Copies of Handout 2, Advanced Discussion Questions 3. Copies of Handout 3, Investment Scenario

Time Required

2-3 classes Procedure Introductory Discussion and Activity 1 Have students read the Investment Brief sections entitled, Introduction, Why Do Companies Invest Overseas, and Concerns About Shifting Production Due to Foreign Investment pages, either on-line or printed out, either in-class or as homework, depending on your preference and student access to computers.

1.

2. Start the lesson with a brief review of key investment terms discussed in the reading and in the Introductory Activity. Students need a firm grasp of the broad concepts of investment prior to learning more specific

nuances. Prior to moving forward, be sure that students understand the basic dynamics of foreign investment, that companies choose to invest in other countries for a variety of economic reasons, and that a closer review of an often-articulated argument against foreign investment provides a balanced perspective. Glossary of Terms: http://www.globalization101.org/issue_sub/investment/Glossaryte rm/

Import Substitution Industrialization: An international economic and trade policy based on the belief that a nation should reduce its dependency on foreign investment and goods by domestic production of industrial goods

Interest rates: Interest rates have a powerful effect on the volume of a nation's money supply. By raising interest rates, i.e., making the cost of borrowing money more expensive, governments or banks can decrease the money supply. A decrease in the money supply tends to be counterinflationary, which makes a currency more valuable compared to other currencies.

3.

Distribute Handout 1 with discussion questions on the nature of foreign investment. The questions are divided into three subsets, corresponding

to different portions of the Investment Issue Brief: What Are the Different Kinds of Foreign Investment?; Differences Between Portfolio and Direct Investment; and, Why Has Foreign Investment Increased So Dramatically in Recent Decades ?

4. Students will answer the questions in a jigsaw exercise. Divide students into groups of threes, and assign each student to respond to one subset of questions. Each student will then share his or her answers with the other students in the group. Each group should then present its answers to the class.

5. You may conclude with one of two options. First, you may summarize the discussion, drawing student attention back to the student objectives, checking for knowledge, and then providing a concluding assessment activity (if necessary).

6. Alternatively, you may assign the students the questions from Handout 2 to respond to as homework or as an in-class writing assignment. (The first two questions are also provided on the website)

Activity 2: Role-Playing Exercise

1. This activity will present a brief scenario concerning a nation newly open to investment. A variety of investment choices will be available,

and students will discuss the choices. Then, the facts of the scenario will change, and students will review their choices based on the changed circumstances.

2. The scenario, described in Handout 3, is that of a small country whose Finance Minister is trying to attract new foreign investment and has three options for how to do so.

3. Read the scenario in Handout 3 to the class or provide a copy of Handout 3 to each student. Acting as the Finance Minister, ask students to evaluate the three different options for how to attract foreign investment. Students may answer orally in-class as a group, or individually as a written in-class or homework assignment.

4. Depending on your preference, you may assign students to do extra research using the Globalization101.org website, such as using the links in the Investment Brief and in the Links section of the website to find out more information about foreign investment from governments, international organizations, or media websites.

5. After the students have tackled the initial round of questions, you can modify the scenario and have students respond to a new set of circumstances, such as the following:

 In the course of the deliberations, a series of violent incidents are initiated by a new, previously unknown revolutionary group. The group seeks to subvert the new government and seize private assets for redistribution to the poor. (Comment: threats to private property tend to frighten investors, and general unrest may lead to widespread civil disordera bad climate for development, discouraging large commitments by banks and other investors. Governments may see loans as a way of pacifying the revolutionaries.) A report by a human rights organization claims that in the new governments zeal for domestic peace, large numbers of intellectuals and dissenters are being arrested and held without trials. (Comment: governments and international organizations often are concerned with public opinion in their home countries, and may seek to connect more freedom with more loans, or may wait until the political climate is more favorable. This usually has little effect on private investors.) The Finance Minister informs his staff that a group of commercial banks has indicated that they will provide substantial loans to the country, if they can receive commitments from the government that the money will be used for a series of infrastructure projects. These projects, however, are very unpopular with some citizens, and include a new oil pipeline and the damming of a rural river.

(Comment: popular discontent towards foreign banks and the perception that these banks are seeking to tell the country what to do may lead to unwillingness on the part of the government to seek these loans. Conversely, the government may have intended the money for these uses anyway. International investors may be reluctant to get involved when local politics (in the Finance Ministers country) are at issue.

6. End the scenario by asking students to think of the last two decades in world history. What events have occurred that have created situations like the one in the scenario (most classes will probably already have made that connection in the discussion, but the end of the Cold War is the most likely example)?. What countries still are either closed to foreign investment or only just starting down that path (for example, Cuba)?. How would the students describe a country like China in this contextopen to investment, yet still controlled by a strong government that imposes many limits? Ask the students how knowledge of foreign investment helps them to understand todays global financial crisis.

RESEARCH OBJECTIVES MAIN OBJECTIVE OF THE RESEARCH The objective of my research is TO STUDY INVESTOR INVESTMENT BEHAVIOR IN STOCK MARKET & SUGGESTING GOOD INVESTMENT STRATEGY OTHER OBJECTIVES To study the investment habit of the people in the stock market. To know about the peoples preference for investment whether investment or trading To understand the frequency of investment in the market To analyze from total saving how much portion of amount people invest in stock market To understand how much people invest at a time To know that for how much period people invest in stock market

 To understand the expected return of people from investment To know on what basis people invest in stock market The preference of people for investment in a particular sector To analyze the preferred price range of share by people To understand the peoples investment strategy To find out the common mistakes made by investors To define certain views for making money in stock market

RESEARCH METHODOLOGY

RESEARCH APPROACH To achieve this objective I have conducted a survey and then collected data and analyzed it and lastly find out the needed results SAMPLING METHOD I have used simple random sampling method for my research SOURCES OF DATA COLLECTION Data sources of are two types 1) Primary data sources 2) Secondary data sources 1) Primary data sources Primary data can be collected through the questionnaire. Which contain the different question about the investment behavior and investment strategy. Primary data sources are very helpful for research. This provides information related to the investors investment behavior & investment strategy.

2) Secondary data sources Secondary data can be collected through e-learning. It provides information regarding Geojit Financial Services Limited SAMPLE SIZE I used 60 samples for my study STATASTICAL TOOL USED FOR DATA ANALYSIS PERCENTILE METHOD AREA OF STUDY THE CUSTOMERS OF GEOJIT FINANCIAL SERVICES LIMITED, MEHASANA

DATA ANALYSIS

1) Do you think about financial planning? a)Yes b) No

2) Do you know about Share Market? a)Yes b) No

3) Do you have a Demat Account? a)Yes b)No

4) Have you ever invested in Share Market? a)Yes b) No c) Thinking

5) Who made you to invest in Share Market? a) Suggested by a friend c) Influence by an Agent b) Own interest d) Other

6) Since how long have you been investing in Share Market? A)Last 1 year b)Last 2 years c)Recently

7) How was your experience in Share Market? a) Good c) Worst b) Average d) Excellent

8) Investing in Share Market is a Wise decision a) Agree c) Strongly Agree b) Disagree d) Strongly Disagree

45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Agree Disagree Strongly Agree Strongly Disagree

Series1

9 In which sector will you like to invest your money in Share Market? a)Equity c)Future b)Commodity d)Currency

Equity Com m odity Future Currency

10) If in Equity then which script will you prefer? a)Pharma c)Banking b)FMCG d)IT e)Others

Pharm a

FMCG

Banking

IT

Others

15% 30% 13%

17% 25%

11) Which type of investing do you prefer? a) Trading b)Long-term c)Short-term d)None of Above

70% 60% 50% 40% 30% 20% 10% 0% Trading Long-term Short-term None of Above Series1

12) Through which medium do you invest your money in Share Market? a)Broker c)Mobile b)Computer d)Others

60% 50% 40% 30% 20% 10% 0% Broker Computer Mobile Others

Series1

13) TA/hats your primary objective? a)Dividend b)Capital gain c) Other

Dividend Capital gain Other

14) Which type of Fund do you invest in Share Market? a)Own Fund b)Borrowed Fund

100% 50% Series1 0% Own Fund Borrowed Fund Series1

15) Share Market is subject to market risks a)Agree c)Strongly Agree b)Disagree d)Strongly Disagree

Agree Disagree Strongly Agree Strongly Disagree

16) In which segment of Equity do you prefer to invest? a)Small cap c)Large cap b)Midcap d)None of these

30% 25% 20% 15% 10% 5% 0% Sm all cap Midcap Large cap None of these Series1

17) Why you do not prefer to invest in Banks and Government Securities? a)Only Fixed and Less return b)Time Boundation c)No Capital Gain d) Other

Series1 40%

25% 20% 15%

Only Fixed and Less Tim e Boundation return

No Capital Gain

Other

 People who invest in stock market have experience of stock market average 2 to 4 years. Most of the people do not want to invest in stock market more than 2 lack. Many people take decision to invest in stock market as per opinion of their friends and relatives. People prefer to invest in stock market rather than trading People who invest in stock market have some investment knowledge & understanding regarding stock market. Most of the people make investment in stock market weekly or monthly. People would like to invest about 40% of their saving in stock market. People like to invest up to 10,000 rs. At a time

 Most of the people would like to invest for 1 to 3 months in stock market. Most of the people expect 15 % return of their investment. Most of the people invest on the basis of their own study, brokers advice & market situation. Most of the people prefer to invest in energy & power sector and banking & construction sector. Most of the people prefer price of share about 50 to 100 rs. Invest in company which give good return to shareholder & have good performance. Take delivery and wait up to sufficient return Intention (market) environment based selection of sector and in that sector invest in powerful companies Long term investment in powerful companies in recession time Study the companies, make your own policies for investment and do not fall victim of fear and greed

 Some of the respondent does not give proper answers of questions. Respondent refuse to give answers of questions. Mostly in my research I have to face language barrier, people do not understand English language well, so I have to explain them in Gujarati. It is difficult to complete the research well in 21 days. Some respondent tries to avoid feeling questionnaire.

It is a good experience for me to conduct research about It will prove very helpful to me in my future career.

study of investor

investment behavior in stock market & suggesting good investment strategy. While conducting this research I can understand the strategies of the people who invest in stock market, their preference for investment, their experience of stock market, frequency of investment, expected return, on which basis they invest & their views to about to make money in stock market.

 WEBSITE
www.geojit.com

ANNEXURE Questionnaire

I Manoj lain of BBA 4th semester am conducting survey on COLLEGE STUDENTS PREFERENCE TO IN VEST IN SHARE MARKET in Varanasi city. NAME: GENDER: AGE: OCCUPATION:1) Do you think about financial planning? a)Yes a)Yes a)Yes b) No b) No b)No 2) Do you know about Share Market? 3) Do you have a Demat Account?

4) Have you ever invested in Share Market? a)Yes a) Suggested by a friend c) Influence by an Agent A)Last 1 year a) Good c) Worst a) Agree c) Strongly Agree a)Equity c)Future a)Pharma c)Banking b)Last 2 years b) Average d) Excellent b) Disagree d) Strongly Disagree b)Commodity d)Currency b)FMCG d)IT e)Others b) No c) Thinking b) Own interest d) Other c)Recently 5) Who made you to invest in Share Market?

6) Since how long have you been investing in Share Market? 7) How was your experience in Share Market?

8) Investing in Share Market is a Wise decision

9 In which sector will you like to invest your money in Share Market?

10) If in Equity then which script will you prefer?

11) Which type of investing do you prefer? a) Trading b)Long-term c)Short-term d)None of Above 12) Through which medium do you invest your money in Share Market? a)Broker b)Computer

c)Mobile a)Dividend a)Own Fund a)Agree c)Strongly Agree a)Small cap c)Large cap Securities?

d)Others b)Capital gain b)Borrowed Fund b)Disagree d)Strongly Disagree b)Midcap d)None of these c) Other

13) TA/hats your primary objective? 14) Which type of Fund do you invest in Share Market? 15) Share Market is subject to market risks

16) In which segment of Equity do you prefer to invest?

17) Why you do not prefer to invest in Banks and Government a)Only Fixed and Less return b)Time Boundation c)No Capital Gain
Survey.

d) Other

Thanks for giving your valuable time and support towards filling this