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PROJECT REPORT
ON
INVESTOR INVESTMENT BEHAVIOUR
IN
STOCK MARKET
Submitted by:
AYUSH
In partial fulfillment for the award of the degree
MASTER OF BUSINESS ADMINISTRATION
(2012- 2014)
DECLARATION
I hereby that I have worked on the topic INVESTOR INVESTMENT BEHAVIOUR
IN STOCK MARKET
All the information that has been collected, analyzed and documented for the project is
authentic possession to me.
I would like to categorically mention that the work here has neither been purchased nor
acquired by any other unfair means. The data and information existing in this report are
accurate and update to the current data, to the best of our knowledge.
However, for this purpose of the project, information already compiled in many sources
have been utilized. I extend my sincere thanks to GIRISH sir, HR Executive, Harpreet
Singh SIR, N.P. ROY Sir & Himanshu sir at BHEL for their support. All information in
this report is true representation of what I have experienced during the project.
AYSUH
ACKNOWLEDGEMENT
I would like to take this opportunity to express my sincere gratitude to our respected mentor for
her valuable guidance.
I extend my sincere thanks to , MR.GIRISH SIR HR Executive of
Mr.S.P Singh for their support and help in the completion of the project.
I would like to thanks almost everybody at the office for his/her friendliness and helpful nature.
With sincere thanks
AYSUH
CERTIFICATE OF ORIGINALITY
(To be filled in by the student in his / her handwriting)
I___________________________________________________________________, Enrolment
No. __________________ of 2012,I am a full-time bona fide student of Post-Graduation
Diploma In Management(PGDM) Program of Doon Business School, Dehradun. I hereby certify
that this training report / project work carried out by me at______________________
__________________________________________________________________________
submitted in partial fulfillment of the requirements of the program is an original work of mine
under the guidance of the industry guide __________________________________________
and internal (faculty) guide _____________________________________________________
and is not based on or reproduced from any existing work of any other person or on any earlier
work undertaken at any other time or for any other purpose, and has not been submitted
anywhere else at any time.
(Student's Signature)
Date:
(Internal Guides Signature)
Date:
Sr.
1
2
3
4
5
Particulars
Preface
Acknowledgement
Executive summary
Introduction about the company
Research Objectives
Page no.
2
3
4
6
13
Research Methodology
14
7
8
9
10
11
12
Data analysis
Findings
Limitations
Conclusion
Bibliography
Annexure
15
30
31
32
33
34
COMPANY PROFILE
Trustline Securities Pvt. Ltd., a Company registered under the Companies Act, 1956 is a
Member of the National Stock Exchange (NSE) & Bombay Stock Exchange (BSE) of
Cash and F&O Segment, Central Depository Services (I) Ltd. (CDSL), National
Securities Depository Ltd. (NSDL) and also a Trading and Clearing member of the
Currency Derivative Segment of NSE
Trustline is a professionally managed group headed by the directors, having vast
experience in the stock market. Besides the core promoters, the group is having its full
fledged teams headed by young and dynamic professionals like chartered accountants,
company secretaries, mbas, IT professionals etc. To handle the various divisions of the
company.
We are fully equipped with all modern infrastructures to carry on its activities. Our
offices are well connected through the VPN, Lease line, ISDN, Internet and other
network facilities. All of its operations are computerized through the advanced
technologies. All offices are ultra modern, hi-tech, well furnished and fully computerized,
driven by the well-qualified professionals.
We have a worldwide vision and it along with its associates is currently providing state of
the art stock broking services through all the major stock exchanges, trading through NSE
& BSE, depository services through CDSL & NSDL and all the services are available
under the one roof. With its ability to evolve with the changing environment the
Company has been able to put itself to the forefront of stock broking activities. With its
network spreading across various parts of India, it has made a distinct mark among the
stock broking houses and high net worth corporate as well as individuals.
Company achievements:
26th July, 1995 - acquired membership of NSE (National Stock Exchange India
Limited).
23rd May, 2000 - became Trading member of F&O (Future & Option) segment of
NSE.
Management profile:
Dr. Mukesh Kansal
Fellow member of "The Institute of Chartered Accountants of India" Fellow
member of "The Institute of the Company Secretaries of India" PhD. on "Stock
Exchange and its significance in India" with case study of DSEA Ltd. Having
more than 15 years of experience in Indian Stock Markets & Investment Services,
being the "Executive Director" and one of the Principal promoter of M/s. Trustline
Securities Pvt. Ltd.
Mrs. Sarika Kansal
Bachelor of Arts
Having more than 13 years of experience in Indian Stock Markets & Investment
Services, being the Director and one of the Principal promoter of M/s. Trustline
Securities Pvt. Ltd
Mr. Vinay Kumar Gupta
Master of Commerce
Having more than 14 years of experience in Indian Stock Markets & Investment
Services, being the Director M/s. Trustline Securities Pvt. Ltd
Mission
To empower individual investors to take control of their Investment lives, free from the
high costs and conflicts of traditional stock broking firms.
Vision
To provide world class investment solutions to the class of investors who believe in 'India
as a story whose time has come and empower them through technology'. To provide the
most useful and ethical Investment Solutions - guided by values driven approach to
growth, client service and employee development
Our Team
Our Motto
Consistent efforts to improve our skill and services to serve the customers better.
Equity
Commodity
Mutual fund
Currency
Insurance
Depository services
Online trading
Back office
Industry profile:
Bombay Stock Exchange is the oldest stock exchange in Asia with a rich heritage, now
spanning three centuries in its 133 years of existence. What is now popularly known as
BSE was established as "The Native Share & Stock Brokers' Association" in 1875.
BSE is the first stock exchange in the country which obtained permanent recognition (in
1956) from the Government of India under the Securities Contracts (Regulation) Act
1956. BSE's pivotal and pre-eminent role in the development of the Indian capital
market is widely recognized. It migrated from the open outcry system to an online
screen-based order driven trading system in 1995. Earlier an Association of Persons
(AOP), BSE is now a corporatized and demutualised entity incorporated under the
provisions of the Companies Act, 1956, pursuant to the BSE (Corporatization and
Demutualisation) Scheme, 2005 notified by the Securities and Exchange Board of
India (SEBI). With demutualization, BSE has two of world's best exchanges, Deutsche
Brse and Singapore Exchange, as its strategic partners.
Over the past 133 years, BSE has facilitated the growth of the Indian corporate sector by
providing it with an efficient access to resources. There is perhaps no major corporate in
India which has not sourced BSE's services in raising resources from the capital market.
Today, BSE is the world's number 1 exchange in terms of the number of listed companies
and the world's 5th in transaction numbers. The market capitalization as on December 31,
2007 stood at USD 1.79 trillion. An investor can choose from more than 4,700 listed
companies, which for easy reference, are classified into A, B, S, T and Z groups.
The BSE Index, SENSEX, is India's first stock market index that enjoys an iconic stature,
and is tracked worldwide. It is an index of 30 stocks representing 12 major sectors. The
SENSEX is constructed on a 'free-float' methodology, and is sensitive to market
sentiments and market realities. Apart from the SENSEX, BSE offers 21 indices,
including 12 sectoral indices. BSE has entered into an index cooperation agreement with
Deutsche Brse. This agreement has made SENSEX and other BSE indices available to
investors in Europe and America. Moreover, Barclays Global Investors (BGI), the global
leader in ETFs through its iShares brand, has created the 'iShares BSE SENSEX India
Tracker' which tracks the SENSEX. The ETF enables investors in Hong Kong to take an
exposure
to
the
Indian
equity
market.
BSE has tied up with U.S. Futures Exchange (USFE) for U.S. dollar-denominated futures
trading of SENSEX in the U.S. The tie-up enables eligible U.S. investors to directly
participate in India's equity markets for the first time, without requiring American
Depository Receipt (ADR) authorization. The first Exchange Traded Fund (ETF) on
SENSEX, called "SPIcE" is listed on BSE. It brings to the investors a trading tool that
can be easily used for the purposes of investment, trading, hedging and arbitrage. SPIcE
allows small investors to take a long-term view of the market.
BSE provides an efficient and transparent market for trading in equity, debt instruments
and derivatives. It has a nation-wide reach with a presence in more than 450 cities and
towns of India. BSE has always been at par with the international standards. The systems
and processes are designed to safeguard market integrity and enhance transparency in
operations. BSE is the first exchange in India and the second in the world to obtain an
ISO 9001:2000 certifications. It is also the first exchange in the country and second in the
world to receive Information Security Management System Standard BS 7799-2-2002
certification
for
its
BSE
On-line
Trading
System
(BOLT).
BSE continues to innovate. In recent times, it has become the first national level stock
exchange to launch its website in Gujarati and Hindi to reach out to a larger number of
investors. It has successfully launched a reporting platform for corporate bonds in India
christened the ICDM or Indian Corporate Debt Market and a unique ticker-***-screen
aptly named 'BSE Broadcast' which enables information dissemination to the common
man
on
the
street.
In 2006, BSE launched the Directors Database and ICERS (Indian Corporate Electronic
Reporting System) to facilitate information flow and increase transparency in the Indian
have
attended
the
BTI
programmes
Name
Terminals
4320
Sub Brokers
910
No. of Employees
4008
No. of Branches
350
Name
Terminals
1700
Sub Brokers
19000
No. of Employees
3910
No. of Branches
581
Name
Indiabulls
Terminals
2876
Sub Brokers
NA
No. of Employees
5873
No. of Branches
522
Name
Terminals
1644
Sub Brokers
NA
No. of Employees
1900
No. of Branches
294
Name
Terminals
7923
Sub Brokers
890
No. of Employees
2193
No. of Branches
63
Name
Reliance Money
Terminals
2428
Sub Brokers
1494
No. of Employees
2037
No. of Branches
142
Name
India Infoline
Terminals
173
Sub Brokers
173
No. of Employees
NA
No. of Branches
605
Name
Terminals
5715
Sub Brokers
NA
No. of Employees
284
No. of Branches
NA
Name
Terminals
1527
Sub Brokers
320
No. of Employees
4566
No. of Branches
220
Name
Trustline
Terminals
627
Sub Brokers
247
No. of Employees
343
No. of Branches
314
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
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
SAMPLE SIZE
AREA OF STUDY
THE CUSTOMERS OF TRUSTLINE INVESTMENT SERVICES LIMITED,
MEHASANA
DATA ANALYSIS
1. From how many years you are in the stock market?
0-2 year
2-4 year
4-6 year
No. of years
0-2 year
2-4 year
4-6 year
more than 6
year
No. of persons
21
24
9
6
2-4 lakh
4-6 lakh
Investment
0-2 lack
2-4 lack
4-6 lack
more than 6
No. of persons
30
18
9
3
lack
Source
Friends & Relative
News paper
Advertise
Mega public issue
News paper
Mega public issue
No. of persons
42
12
0
6
As per above chart about 70 % persons would like to invest in stock market as per
opinion of their friends and relatives while 20 % persons would like to invest as per
newspaper and magazines and persons do not like to invest through advertising and about
10 % persons would like to invest as per mega public issue. So it can be conclude that
most of the people invest as per opinion of their friends and relatives.
4. What you prefer more?
Investment
Preference
Investment
Trading
Both
Trading
Both
No. of persons
36
18
6
Experience
Very little knowledge & experience
No. of persons
6
42
12
investment
As per above chart 10% persons have Very little knowledge & experience while about 70
% persons have Some investment knowledge & understanding and about 20% persons
have Very huge experience &good knowledge of investment. From above information it
is clear that the majority of people who invest in stock market have average knowledge of
investment.
6. How frequently do you invest in the market?
Weekly
Quarterly
Monthly
Half yearly
Frequency of
No. of persons
investment
Weekly
Monthly
Quarterly
Half yearly
24
18
8
10
As per my research about 40 % persons would like to invest weekly in stock market
while 30% persons would like to invest monthly in stock market and about 13.33%
persons would like to invest quarterly in stock market while about 16.67% persons would
like to invest half yearly in stock market.
7. From total saving how much portion of amount you invest in stock market?
10-20%
20-40%
60-80%
80-100%
Investment in stock
No. of
market
10-20%
persons
10
40-60%
20-40%
40-60%
60-80%
80-100%
24
18
4
4
As per above chart about 16.66% persons invest 10 to 20% of their saving while about
40% persons invest 20 to 40% of their saving and about 30% persons invest 40 to 60% of
their saving and about 6.67% persons invest 60 to 80% of their saving while about 6.67%
persons invest 80 to 100% of their saving.
8. How much do you invest at a time? (In1000Rs.)
Up to 5
5-10
10-15
15-20
20-25
More than 25
No. of persons
20
20
10
2
2
6
As per my research about 33.34% persons invest up to 5000 Rs. At a time and about
33.345 persons invest 5000 to 10000 Rs. At a time while about 16.66% persons invest
10000 to 15000 Rs. At a time and about 3.33% persons invest 15000 to 20000 Rs. At a
time while another 3.33% persons would like to invest 20000 to 25000 Rs. At a time and
about 10% persons invest more than 25000 Rs. At a time.
1-3 Month
3-6 Month
6-12 Month
No. of persons
4
24
6
18
8
Above chart shows that about 6.67% persons invest for 8 to 10 days while about 40%
persons invest for 1 month to 3 month and about 10% persons invest for 3 month to 6
month while 30% persons invest for 6 month to 12 month and about 13.33% persons
invest for more than one year.
12-16%
16-20%
Expected return
8-12%
12-16%
16-20%
More than 20%
No. of persons
18
11
16
15
As per my research 30% persons expect 8 to 12% return while 18.33% persons expect 12
to 16% return and about 26.67% expect 16 to 20% return while 25% persons expect more
than 2
Market situation
Own study
Base
Brokers advise
Market situation
Tips, paid service
News paper, Magazine
Companys news, Result
Own study
No.of persons
12
12
6
8
6
16
Above chart shown the various factors and its impact on investment and how investor
consider such factors while investing. The chart suggest that people much like to invest
according to their own study of stock market.
12. At current level which sector do you prefer more for investment?
Banking & Construction
Engineering
Metal
Information technology
Capital Goods
Investment Services
FMCG
Telecom
Sector
Banking & Construction
Energy & Power
Reality (real estate)
No. of persons
8
12
5
Engineering
Metal
Information technology
Capital Goods
Investment Services
FMCG
Telecom
4
4
7
5
6
6
3
13. From below mentioned share price range which range do you prefer
for
Buying share?
Below Rs.50
Rs.50-100
Rs100-500
Price range
Below Rs.50
Rs.50-100
Rs100-500
More than Rs.500
No. of persons
6
26
20
8
Above chart shows the price range preferred by various persons. From the above chart it
can be conclude that majority of people prefer the price of share from 50 to 100.
16. What are your views for making money in stock market?
World recession
Forth coming political elections
Excessive rise of equities market in recent time
Global Investment crisis
American subprime issue
Lowest consumers and industrial demand
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.
study of investor
WEBSITE
www.Trustline .com
ANNEXURE
Questionnaire
2-4 year
4.6 year
2-4 lakh
4-6 lakh
News paper
Mega public issue
Trading
Both
Monthly
Half yearly
7. From total saving how much portion of amount you invest in stock market?
10-20%
20-40%
60-80%
80-100%
40-60%
5-10
10-15
15-20
20-25
More than 25
1-3 Month
3-6 Month
6-12 Month
12-16%
16-20%
Market situation
Tips, paid service
News paper, Magazine
Companys news, Result
Own study
12. At current level which sector do you prefer more for investment?
Banking & Construction
Engineering
Metal
Information technology
Capital Goods
Investment Services
FMCG
Telecom
13. From below mentioned share price range which range do you prefer
for
Buying share?
Below Rs.50
Rs.50-100
Rs100-500
-----------------------------------------------------------------------------------------------15. In your opinion what are the mistakes made by common investors?
-----------------------------------------------------------------------------------------------16. What are your views for making money in stock market?
B) SERVICE
C) PROFESSION
D) OTHER
ANNUAL INCOME:
A) LESS THAN 50,000
C) 1, 00,001 TO 3, 00,000
E) MORE THAN 5, 00,000
B) 50,000 TO 1,00,000
D) 3, 00,001 TO 5, 00,000