A Project Report

On

“A Study of Investor’s Satisfaction Towards Investment in Stock

Market”

SMK Vision Edutrain Pvt. Ltd.

Submitted by

Darshan Sanjivan Kharadkar

Roll No. 211634

Submitted to “Savitribai Phule Pune University”

In partial fulfilment of the requirement for the award of the degree

“Masters of Business Administration” (M.B.A.)

Batch (2021-2023)

Under the guidance of Prof. Shrinivas Tumuluri

Through

ASM IBMR COLLEGE, CHINCHWAD, PUNE-411019

 ACKNOWLEDGEMENT

I am using this opportunity to express my gratitude to everyone who supported me

throughout the course of this MBA Project. 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 number of
issues related to the project. I would also like to thank my project guide “Prof. Srinivas
Tumuluri” and all people who provided me with the facilities being required and
conductive conditions my MBA Project.

Place: Pune Darshan Sanjivan Kharadkar

Date: Name of the Student
 DECLARATION

I, Darshan Sanjivan Kharadkar hereby declare that the Project report of "Investor's
Satisfaction towards Investment in Stock Market" prepared by me under the guidance of
Prof. T Srinivas faculty of M.B.A Department, ASM Institute of Business Management
and Research. And external assistance by Surekha Kawade Director of SMK Vision
Edutrain Pvt Ltd. I also declare that this project work is towards the partial fulfilment of
the university regulations for the award of degree of "Master of Business Administration
by ASM Institute of Business Management and Research. I have undergone a summer
project for a period of 8 weeks. I further declare that this project Is based on the original
study undertaken by me and not been submitted for the award of any degree from any
other University /Institution.

Place: Pune Darshan Sanjivan Kharadkar

Date: Signature
 TABLE OF CONTENT

Sr. No. Particular Page No.

1 Executive Summary 1
2 Industry Profile 3
3 Company Profile 21
4 Primary study 24
5 Research Methodology 30
6 Data Analysis & Interpretation 33
7 Findings 46
8 Recommendation 48
9 Conclusion 50
 Chapter – 1

EXECUTIVE SUMMARY

1
 Executive Summery

Stock market always is a mysterious place for Indian Investors. Most of the Indian
Investors are traditional and conservative when it comes to investment options. Stock
Market is considered to be the riskiest and dangerous place to invest, a common
misconception. This project deals with the study of investors satisfaction towards
investment in stock market. This project is based on which type of avenue used of
investor. Many people don’t have invested about Investment Avenue, So, one
purpose is that what are reasons behind their lack of knowledge towards investment
in stock market. Many pe know about Investment Avenue but they really don't do it
because they are not aware of the benefits which they can get through investment,
and it also helps to increase savings and help to generate income out of savings. This
can help SMK Vision Edutrain Pvt Ltd.

2
 Chapter – 2

INDUSTRY PROFILE

3
 About Industry

Introduction:

Capital is a crucial factor in the development of an economy. The pace of

economy development is conditioned, among other things, by the rate of capital
information. And capital formation is conditioned by the mobilization and
channelization of investment funds. The role of the financial system is to channel
funds from surplus sectors to deficit sectors. Facilitating and effective demand and
thus accelerates economic development.

Savings is important part of the economy of any nation. Now a day various
options are available in investment. The money act is main object of growth of
country. Indian financial scene too presents a plethora of avenue to the investors.
Though certainly not the best or deepest of markets in the world. It has reasonable
options for an ordinary man to invest his savings.

What is investment?

In a theoretical way, investment is a process of sacrificing something today

for the possibility of gaining something in future or Investment is an agreement for a
current outflow of money for some period of as well as the uncertainty regarding to
the inflow of the money in futures.

In economics, investment is the collection of newly produced physical

entities such as factories, machinery, houses and goods investors. In Finance, the
purchase or possession of an assets or item having monetary value with the hope that
it will generate income or appreciate in the future and be sold at the higher Income is
called as making an investment.

4
 Classification of Investment

Investment divided into two parts, economic investment and financial investment.

1) Financial Investment:

It means funds of people in the form of assets with the objective of earning extra
earning in the value of investment in future. Assets which are depended on the
subject matter of investment will be varying risky and safe once.

2) Economic Investment:

The term “economic investment” is derived from the capital stock of the society.
Capital stock of the society means those goods and services which are used in the
production of goods and services.

3) Factor Determining Investment:

The activities related to investment consist of acquisition of assets, their

maintenance and the liquidation of assets. A good investment should facilitate these
investment activities and factors their growth. There are certain factors which are the
growth of investment. As investment is the result of savings, the government should
introduce adequate measures to encourage saving accumulation. The right of the
investor who has invested their surplus in assets should be protected against any
possible infringement.

4) Well Organized Monetary System:

It is essential of the growth of the investment market. Investment consists of

convey of surplus funds in specific assets. In fact, it should constantly price level,
which in turn will contribute to a discipline investment market.

5
 5) Role of Financial Institutions:

Financial institutions mobilize saving and convey them for productive use in
industry. There are two types of financial institution in the market. Development
institution and Investment institution. Such as, ICICI, IDBI, IFCI, etc. Which

have been performing to all India basis and State level bodies such as state
finance and development? These financial institutions give support for saving and
investment.

6) Macro-Household Saving & Investment:

As per the RBI data, published from time-to-time financial saving and physical
assets held by households are available for discussion. During recent years the data
shows that the net investment in financial assets and net physical assets are in the
ratio of about 45% and55%, respectively.

What is Stock Broking Firm?

Brokerage firms serve a clientele of investors who trade public stocks and
other securities, usually through the firm's agent stockbrokers.

Brokerage firms are the business entities that deal with stock trading. India,
with an increasing capital market and a growing number of investors, has several
brokerage firms. In Indian retail brokerage industry, the brokerage firms primarily
work as agents for buying and selling of securities like shares, stocks and other
financial instruments and earn commission for each of the transactions. There are
plenty of brokerage firms in India.

The Indian Capital market is undergoing a wonderful phase when the growth
rate is on the higher side. As of 31 March 2018, a total of 2, 33, 18,447 investors
have their accounts and have their business going with the Indian Stock Market.

6
History of Stock Broking Firms

Stock brokerage firms have been an established feature in the financial

industry for nearly one thousand years. Dealing in debt securities, brokers employ a
variety of systems to aid investors with the purchase and sales of stocks and bonds in
a variety of markets. The firms have changed over the years, growing to massive
organizations that can affect the entire financial sector positively or negatively with
their performance. Changing with the Times, the early twenty-first century saw a rise
of online trading that enabled the average investor to take part in the stock market for
the first time.

Stock Market

History of Indian Stock Market:

Indian stock market marks to be one of the oldest stock markets in Asia. It
dates to the close of 18th century when the East India Company used to transact loan
securities. In the 1830s, trading on corporate stocks and shares in Bank and Cotton
presses took place in Bombay.

The informal group of stockbrokers organized themselves as the Native Share

and Stockbrokers Association which, in 1875, was formally organized as the
Bombay Stock Exchange (BSE).

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.

Stock Market:

Stock Market is a market where the trading of company stock, both listed
securities and unlisted takes place. It is different from stock exchange because it
includes all the national stock exchanges of the country.

Indian stock market marks to be one of the oldest stock markets in Asia. It
dates back to the close of 18th century when the East India Company used to transact

7
loan securities. In the 1830s, trading on corporate stocks and shares in Bank and
Cotton presses took place in Bombay.

Stock Exchanges:

Stock Exchanges are an organized marketplace, either corporation or mutual

organization, where members of the organization gather to trade company stocks or
other securities. The members may act either as agents for their customers, or as
principals for their own accounts.

Stock exchanges also facilitates for the issue and redemption of securities and
other financial instruments including the payment of income and dividends. The
record keeping is central, but trade is linked to such physical place because modern
markets are computerized. The trade on an exchange is only by members and
stockbroker do have a seat on the exchange.

8
The Two Major Stock Exchanges in India are: -

Bombay Stock Exchange (BSE)

Bombay stock exchange on the other hand was set up in the year 1875 as
"THE NATIVE SHARE & STOCKBROKERS ASSOCIATION" and is the oldest
stock exchange in Asia. 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 Exchange's pivotal and pre-eminent role in
development of the Indian capital market is widely recognized and index, SENSEX,
is tracked worldwide. It has evolved into its present status as the premier stock
exchange.

National Stock Exchange (NSE)

National stock exchange incorporated in the year 1992. It started trading on 4

November 1994. Within less than a year, NSE turnover exceeded the BSE. NSE
embarked on the launch of equity derivatives trading. 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. It 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.

NSE is a well-diversified 50 stock index according for 22 sectors of the

economy. It is used for a variety of purposes such as benchmarking fund portfolios,
index-based derivatives and index funds.

NSE came to be owned and managed by India index service and products
Ltd. (IISL), which is a joint venture between NSE and CRISIL, IISL, is India's first
specialized company focused upon the index as a core product. IISL have a
consulting and licensing agreement with standard & poor's(S&P), who are world
leaders in index services. CNX stands for CRISIL NSE indices. CNX ensures
common branding of indices, to reflect the identities of both the promoters, i.e., NSE
and CRISIL. Thus, “C” stands for CRISIL, “N” stands for NSE and "X" stands for
Exchange or index. The S&P prefix belongs to the US based standard & poor's
financial information services.

9
Primary Market & Secondary Market

In the primary market, Securities are offered to public for subscription by

Companies for the purpose of raising capital or fund.

Secondary market is an equity trading avenue in which already existing / pre-

issued securities are traded amongst investors.

IPO (Primary Market)

IPO refers to Initial Public Offer it may be also called Primary Market, where
company issues Equity & raise Capital.

Now days most Company adapts Book building route for raising capital
through IPO, where online bidding took place through exchange for applying in IPO.
For applying for shares in an IPO either investor have to fill physical form & submit
or may apply through online option given by some Members to its client who then
on client behalf fill & apply for the IPO.

IPO allotment / refund are processed within 15 days & the shares are listed &
traded in Secondary Market/Stock Exchange in maximum 21 days of IPO closing.

Secondary Market Trading Through Stock Exchange

In India at present there are two major stock exchanges exist which
contributes almost total volumes of equity trading in the country.

Factors Influencing Share Prices

Macro- Economic Factors: National & Global Economy status. (GDP

growth, Consumption, Inflation, Country's Economic condition etc.)

Sector Specific Factors: Sector growth, Government Policies for Sector,

International Market of Sector & other relevant trends.

Company Specific Factors: Company's Management Strength & Credibility,

Company's Profitability, Previous Track record, Balance-sheet Strength, ROE,
Company's Future Prospects, etc.

10
What is Index (BSE Sensex 30, NSE Nifty 50, Etc.)

Index is a weighted average of prices of leading companies included in it.

BSE main Index named as SENSEX consists of 30 Top Companies

according to Exchange criteria. Apart from it there are other Indexes available at
BSE are BSE100, BSE200, BSE-midcap, BSE-small cap & so on, which shows the
collective price movement of scripts included in that Index.

Similarly, NSE s main Index is NIFTY50 which includes top 50 Companies,

the other indexes at NSE are Junior Nifty, Midcap Nifty, Bank Nifty, CNX-IT etc.

Trading Mechanism at Exchange

Exchanges are now providing Screen Based Trading Systems, where a client
registered with Member of Exchange may buy or sell shares of listed companies
through online Terminals.

At present Normal Market timings for Equity & FO is from 9.00 am to 3.30
pm One may get enter Buy/Sell Orders at Market rate or put Limit order at desired
price (subject to day circuit limit of the Scrip) for buying or selling the shares of
listed companies.

The trades executed are done in specific Client code & may be verified with
the Exchange site.

Objectives:

 The three main objectives of investment are safety, income and growth of
capital.
 Investor’s gets the benefit of the tax reduction.
 Investment leads to marketability or liquidity.
 Investment helps in the goal of wealth maximization.

PESTEL analysis of Indian Capital Market

POLITICAL:

The capital market of India is very vulnerable. India has been politically
instable in the past, but it is a little politically stable now-a-days. The political
instability of the country has a very strong impact on the capital market. The share

11
market of India changes as the political changes took place. The BSE Index,
SENSEX goes up and down with any kind of small and big political news, like, if
there is news that a particular political party has withdrawn its support from the
ruling party, and then the capital market will go down with a bang. The capital
market of India is too weak and is based on speculations. The political stability of the
country is very important for the stability and growth of capital market in India. The
political imbalance or balance of the country is the major factor in deciding the
capital market of India. The political factors include:

POLITICAL:

 Employment laws
 Tax policy
 Trade restrictions and tariffs
 Political stability

ECONOMICAL:

The economic measures taken by the government of India has a very strong
relationship with the capital market. Whenever the annual budget is announced the
capital market goes up and down with the economic policies of the government. If
the policies are supportive to the companies, then the capital market takes it
positively and if there is any other policy that is not supportive, and it is not
welcomed then the capital market goes down. Like, in the case of allocation of 3-G
spectrum, those companies that got the license for 3-G, they witnessed sharp growth
in their share values so the economic policies play a major part in the growth and
decline of the capital market and again if there is relaxation on any kind of taxes on
it Of automobile industry then the share of automobile sector goes up and virtually
strengthen the capital market.

The economical factors include:

 Inflation rate
 Economic growth
 Exchange rates
 Interest rates

12
SOCIAL:

India is a country of unity in diversity India is socially rich, but the capital
market is not very attached with the social factors. Yes, there is some relation
between the social factors with the capital market. If there is any big social factor,
then to some extent it affects the capital market, but small social factors don't impact
at all. Like, there was opposition of reliance many cities and many stores were
closed. The share prices of the reliance fresh went fresh went down but the impact
was on and individual firm there was not much impact on the capital market on a
whole the social factors have not much of impact on the capital market in India.

The social factors include:

 Emphasis on safety
 Career attitudes
 Population growth rate
 Age distribution
 Health consciousness

TECHNOLOGICAL:

The technological factors have not that much effect on the capital market.
India is technological backward country. Same as social factors, technological factor
can influence an individual form, but it cannot have a big impact on a whole of
capital market. The Bajaj got a patent on its dts-i technology and launched it in its
new bike, but it does not effect on capital market. The technological change in India
is always on a lower basis and it doesn't effect on country.

The technological factors include:

 R&D activity
 Technology incentives
 Rate of technological change
 Automation

13
ENVIRONMMENTAL FACTORS:

Initially the environmental factors don't play a vital role in the capital market.
But the time has changed, and people are more eco-friendly. This is really bothering
them that if any firm or industry is environment friendly or not. An increasing
number of people, investors, and corporate executives are paying importance to these
facts; the capital markets still see the environment as a liability. They belie that it is
of no use for their strategy. The environmental performance is even under-
valued by the markets.

LEGAL FACTORS:

Legal factors play an important role in the development and sustain the
capital market. Legal issues relating to any industry or firm decides the fate of the
capital market. If the govt. of India or the parliament introduces a new law that can
affect the running of the industry, then the industry will be de-motivated, and this
demonization will lead to the demonization of the investors and will result in the fall
of capital market. Like after the Hardhat Mehta scam, new rules and regulations
were introduced like PAN card was made necessary for trading, if any investor was
investing too much money in a small firm, then the investors were questioned, etc.
These regulations were meant to maintain transparency in the capital market, but at
that time, investment was discouraged. Legal factors are necessary for the
improvement and stability of the capital market.

14
 INVESTMENT AVENUES

Bank & Post-Office Bullions & Jewellery

Deposits

Mutual Funds Real Estate

Capital Market Insurance Policies

Instrument
Money Market
Instrument

15
 INVESTOR’S PERCEPTION

Perception is a kind of process of attaining awareness or understanding of the

environment by organizing and interpreting information. Investment perception
depends on various aspects like occupation, marital status etc. Fundamental
investment rules and principals are same as, investment climate and investor
behaviour change from time to time and place to place. Investor perception is
individual. They collect available and relevant information for making decision.

16
INDIAN MARKET

Why do people invest? Generally, people invest because of get long term
financial benefit. It's to save and invest money for long period of time to have a
financial stability in future. Investment is to make our money work for us. There are
many investments avenue is available in India.

1. Investing a Mutual Fund

People generally choose to invest in mutual fund. Nowadays trend is money

invest in mutual fund. One of the best investment options is mutual fund for a
systematic investment plan. This investment plan is giving a better return compared
to any another investment option in the market. Many companies introduce mutual
fund like L&T Infrastructure Fund introduce on September 27, 2007, and Aditya
Birla Sun Life Frontline Equity Fund introduce in August 30, 2002.

2. Capital Market Instrument:

Generally, people know how to analyse share stock before going to buy direct
equity or share. In this case no limit of maximum amount or minimum amount. In
this case not applicable minimum investment period.

One of the best investment options is Invest in Bonds. They provided a high rate
of return on investments. There are bonds that are under the regulation of
government. There are various short term and long-term investments option are
provide. High investment leads to high risk and more return.

3. Real Estate Investment:

Real estate is one of the fast-growing sectors in India. In major areas like
housing, commercial, hospitality, manufacturing, retail and more. Best decision in
investment purchasing flat or plot. In this area risk is low because rate of property
increases within 6 months.

4. Investing in gold in various ways:

17
 Real estate is one of the fast-growing sectors in India. In major areas like
housing, commercial, hospitality, manufacturing, retail and more. Best decision in
investment purchasing flat or plot. In this area risk is low because rate of property
increases within 6 months.

Mutual Fund 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year

Scheme
SBI – ETF 4.36 14.47 13.02 17.74 11.87 12.80
Gold
Quantum 4.39 14.56 13.05 17.75 11.39 12.48
Fund
HDFC Gold 4.36 14.46 13.02 17.74 11.85 12.64
Exchange
Traded Fund

5. Post Office Saving Schemes:

This is best option in investment. That ensures the highest return. Post Office
Scheme is monthly income plan. So, this is very suitable for retired people with
regular income requirement. In this area does not have related any risk factor but
interest is low. This is government saving scheme. Many requirements and benefits
are included,

 Maximum investment limit in single account Rs. 4.5 Lakh.

 Maximum investment limit in joint account Rs. 9 lakhs.
 Minimum eligibility age 10 and above.
 Single account can be converted in joint account and vice-a-versa.

6. Insurance Plans:

It is best investment option in India. It invests in debt and equities market. In this
area fluctuation is counted by the Net Asset Value. It is also known as ULIP. It is
playing important role in investment market.
18
 7. Company Fixed Deposits:

Company FD gives higher rate interest. Generally, people selected investment

period very carefully. These schemes are not under any insurance benefits and
neither it is under control of the Reserve Bank of India. It is long term investment.

8. Money Market Instrument:

The money market is important for businesses because it allows companies with
temporary cash to invest in short term securities. The money market is the arena in
which financial institution make available to a broad range of borrowers and
investors the opportunity to buy and sell various forms of short-term securities.

 Treasury bills
 Federal agency notes
 Certificates of deposit
 Eurodollar deposits
 Commercial papers

THE GROWTH OF THE INDUSTRY

1. Real Estate:

The real estate sector is one of the most developing sectors. In India real estate is
second largest employment generated industry after agriculture. It is estimated that it
will grow up to 30% in next decades. The growth of this sector is depending upon
environment and demand of the country.

2. Mutual Fund

The mutual fund increases of around 2.2 million new investors during 2014-15. The
total number of investors are 4.17 crore at the end of the month in March 2015 as
compared to 2014, in 2014 it was 3.95 crore. ICICI prudential is registered as the

19
fastest growing industry of 25% with the total investor. Similarly, Birla sun life is
growing with growth of 20% to 24.26 lakhs from 20.19 lakh investors. HDFC
mutual fund is one of the country's largest fund houses.

3. Gold:

"India is having the largest gold consumer in the world."

Gold is traditional investment avenue and one of the safe investment options. In
2015 the gold price was Rs. 26,343.50, in 2016 it increases by Rs. 28,623.50 and in
2017 it increases by Rs. 29,667.50.

4. Post Office & Bank:

"Over the last several years, post office deposits have been attracting investors, by
reducing its interest rate". According to RBI data, from last five years post office
deposit grow by 24% annually between 2011-12 and 2014-15. Bank deposit has been
14% in similar time duration.

5. Insurance

Insurance industry plays a vital role in the Indian Market. There are altogether 53
insurance companies that are serving both life insurance and general insurance
products to the customers countrywide. The life insurance sector recorded a new
premium income of Rs. 1.38 trillion in a year, i.e., April 2015 to March 2016. This
indicated a dramatic growth rate of 22.05% in the premium income.

20
 Chapter – 3

COMPANY PROFILE

21
 SMK Vision Edutrain Pvt. Ltd.

Profile:

SMK VISION EDUTRAIN PRIVATE LIMITED is a Private Company, Which

CIN Number is U74999PN2017PTC170054, was incorporated 5 Year(s) 9 Month(s)
1 Day(s) ago on dated 21-Apr-2017 . SMK VISION EDUTRAIN PRIVATE
LIMITED is classified as non-Government and is registered at Registrar of
Companies located in ROC-PUNE. Directors of SMK VISION EDUTRAIN
PRIVATE LIMITED are SHIVAJI BHARAT SHEWALE, SUREKHA
MANOJ KAWADE.

As Per Registration of Company, it involves under in Business Activity

Class, Main Activity of the said Company SMK VISION EDUTRAIN PRIVATE
LIMITED is, other business activities N.E.C., It Comes under division other business
activities. Age of company is more than 5 years.

Memberships:

SMK Vision Edutrain Pvt. Ltd. holds a channel partnership of Angel One Limited.
They offer a path of investments in Stocks, Upcoming IPOs, Futures, Options,
Mutual Funds, US Stocks, ETF, Currencies, Commodities, NCD, Corporate Bonds,
Tax Free Bonds, 54EC Bonds, Sovereign Gold Bond, Tax Savings Bonds.
22
Group Companies:

Rising Deccan Eduskills Pvt. Ltd.

Globalreach IT Consulting Services Pvt. Ltd.

Products:

Equity Trading

Commodity Derivatives

Currency F&O Trading

F&O Trading

Services:

Trading & Demat Account

Research Advisory

IPO

Mutual Fund

Intraday Trading

Insurance

23
 Chapter-4

PRIMARY STUDY

24
 INTRODUCTION TO THE STUDY

Capital market development because of there have been closely related to

an economic development. At low levels of development, commercial banks tend to
dominate the financial system. There are many financial assets and investment
avenue are available in India. Each investment option has its own strengths and
weakness. Some option achieves good return but with high risk. Other options like,
FDs offer safety and liquidity, but at the cost of return.

Savings is an important part of the economics of any nation. With the

savings invested in various options are available to the people, the money acts as the
driver for growth of the country. Main aim of invest and earn return on their resource
and generate specific goal in life. One of the important reasons is inflation. Inflation
is the rate at which the cost-of-living increases. The cost of living simply what is
coat to buy the goods and services you need to live. By investing early, you allow
your investment more time to grow, whereby the concept of compounding increases
your income.

Investing is not a game, but serious subject that can have a major impact
on investor's future wellbeing. Investor has a lot of Investment Avenue to park their
savings. The investor must choose Proper Avenue depending upon his specific need,
risk preference, and returns expected. Investment is always interesting. challenges
and rewarding. A good investment strategy will diversify the according
to the specific need.

25
 LITERATURE REVIEW

Behavioural finance is a new emerging science that studies the irrational

behaviour of the people. Vanish Kumar Singh (2006) the study entitles "Investment
perception of people" has been undertaken with the objective; to analyse the
investment perception of people in analysis of the study was undertaken with the
help of survey conducted. After analysis and interpretation of data it is concluded
most of investors are more aware about various investment avenues. All the age
groups give more important to invest. Major investors are aware about the risk
associated with that.

Sudalai Muthu and Senthil Kumar (2008) Mutual fund is the one of
investment avenue the researcher research in this area about investors perception
towards mutual fund investment has been analysed effectively taking into account
the investors reference towards the mutual fund sector, scheme type, purchase of
mutual fund units, level of risk undertaken by investors, sources of information about
the market value of the units, investors opinion on factors influenced to invest in
mutual funds, the investor satisfaction level towards various motivating factor,
problem faced by mutual fund investors. The study has made an attempt to
understand the financial behaviour of mutual fund investors in connection with the
scheme preference and selection.

Sunil Gupta (2009) the investment pattern among different groups in city
had a clear as well as a complex picture. The complex picture means that the people
are not aware about the different investment avenues, and they did not respond
positively. probably it was difficult for them to understand the different avenues. The
attitude of the investors towards the securities in general was bleak, through service
and professional class is going in for investment in shares debentures and in different
mutual fund schemes. Major cities though being rich have a tendency of investing
then surpluses in fix deposits of banks, provident funds, post office savings, real
estate's etc. For want of safety and suitability of returns.

26
 BACKGROUND OF THE STUDY

The study has been conducted with the objective of investor's perception
towards investment in stock market. The sample of 50 represents the investor of
Pune city. Financial planning through high amount of saving can be possible and
saving lead investment.

This project is based on which type of avenue used of investor. Many

people don’t have invested about Investment Avenue, So, one purpose is that what
are reasons behind their lack of knowledge towards investment in stock market.
Many pe know about Investment Avenue but they really don't do it because they are
not aware of the benefits which they can get through investment, and it also helps to
increase savings and help to generate income out of savings.

To identify above details, I look a response of 50 people who are living

in Pune. and invest in Investment Avenue.

27
 PROBLEM STATEMENT

This project knows the preference and analyses the significance of

factors that influence the investor's decision towards making investments. This study
follows to find out factors of population like age, gender, occupation, income etc.
several elements of investment. The hypotheses have been developed to research
objective. Investment perception it has been taken a dependent variable.
Demographic factors like age and gender are considered as independent variable.
Data were classified, tabulated and tested statistical inference were drawn using
hypothesis and Chi- square technique.

28
 OBJECTIVES OF THE STUDY

The main objective of the analysis is to determine the investment behaviour

of investors and investment preference for the same. The main purpose of the
project is to find out need of the current and future investors. For this analysis,
investor's perception level will be measured in the important area such as:

 To understand in difference investment avenue available in India.

 To find out how investors get information about the financial instrument.

 Which would prefer to invest?

 To know the awareness about the different avenue among the investors.

 To identify the risk bearing capacity, management between expense and saving

 And other factor influences their investment decision.

 To give some advice to the investors that where they should invest.

29
 Chapter-5

RESEARCH

METHODOLOGY

30
 RESEARCH DESIGN

There is total three types of research design descriptive, exploratory, and

causal.

Here descriptive research design will used to gain better understanding of

respondent. The methodological approach to this study is descriptive, because we
attempt to identify and explain variable that exist in a given situation and to describe
the relationship that exists between the different variable which affect customer
attitude toward online and offline trading in the stock market.

So, here descriptive research method has been used.

DATA COLLECTION METHOD

Information collected both primary and secondary data.

1. Primary Data:

Primary data are those which are collected for the first time and happen to be
original in character. Primary data was collected through direct personal interviews
(open ended and close ended questionnaire).

2. Secondary Data:

Secondary data are those which have already been collected by someone else.
This type of data happens to be passed through the statistical process. Secondary data
was collected.

 Investment Magazines, Business Magazines.

 Experts" opinion published in various print media.
 Web sites.
 Books.

Here primary study has been conducted to get information. Primary data
collected through questionnaire. 50 responses have been collected for this study.

31
 SAMPLING METHOD

The responses have been collected as per convenience sampling method,

which is classification of non-random sampling method.

Purpose behind the selecting this method is we can't force any person for
response and if we force respondent then there are chances of wrong response given
by them. So, convenience responses collected is as per the convenience of
respondent.

32
 Chapter – 6

DATA ANALYSIS

AND
INTERPRETATION

33
 Respondent’s Gender Analysis

Male 40
Female 10
Total 50

Interpretation:

The above table and chart show gender wise distribution. Out of 50 samples
80.40% are males and 19.60% are females. Hence, we can say that the proportion of
male is more as compared to proportion of females.

34
 Respondent’s Occupation Analysis

Business 9
Government Employee 2
Private Employee 8
Professional 2
Student 29

Interpretation:

From the above chart, we can say that in the survey most of the respondents
are students. Students are started investing money on behalf of their families and
earning better returns by investing in stock market. Businessman is 17.60% and
respondents from private employees are 15.70%. At least investment done in stock
market by government employees and professionals by 3.90% and 3.9%
respectively.

35
 Respondent’s Income Analysis

Less than Rs. 250000 34

Rs. 250000 – 500000 10
Rs. 500000 – 1000000 6
More than Rs. 1000000 -

Interpretation:

From the above table and chart, we can interpret that 66.70% of respondents
have their annual income less than Rs.2,50,000. 19.6% respondents have their annual
income in between Rs. 2, 50,000 -Rs.5, 00.000. 13.70% respondents have their
income in between Rs. 5,00,000 - Rs. 10,00,000.

36
 Respondent’s Preference Market for Investment

Primary Market 12
Secondary Market 14
Both 24

Interpretation:

The above table and chart show that out of 50 respondent’s maximum
respondents does invest in primary and secondary market by 47.1%. 27.50%
respondents choose secondary market for investment and 25.50% respondents opt
primary market for investment in stock market.

37
 Respondent’s Investment Objective

Long Term 23
Short Term 12
Dividend -
Long Term & Short Term 15

Interpretation:

From the above chart and table, it can be analysed that people who does
investment in stock market does investment with the objective to gain long term
benefits. 45.10% respondents have the objective to gain long term benefits. 29.40%
respondents have the objective to gain long term & short-term benefits. 25.5%
respondents have the objective to gain short-term benefits while rest of the
respondents have least interest in gaining dividend.

38
 Respondent’s Expected Benefits for Investment

Wealth Creation 24
Tax Benefits 6
Future Expectations 20
Other -

Interpretation:

From the above table and chart, it is clearly shown that people who do
investment in stock market have the main objective of wealth creation. After that,
future expectations from the investment done are made. While respondents with tax
saving benefits and other benefits with 13.70%.

39
 Respondent’s Expected Rate for investment

Steady Rate 17
Average Rate 29
Rapidly Growing Rate 4

Interpretation:

The above table and chart show that 56.90% respondents expect a average
rate for their investment done. While respondents expect their investment to grow at
steady rate and 7.80% respondents expects to grow their investment at rapidly
growing rate.

40
 Respondent’s Different Parameters for Investment

Highly Moderately Neutral Moderately Highly Dis-

Satisfied Satisfied Dis-satisfied satisfied

Savings A/c 10 9 28 2 1
& Bank FD

Stock 9 22 17 1 1
Market
Mutual 8 23 17 2 -
Funds
Bonds 8 19 21 3 -
Properties 19 15 16 1 -

Respondent’s Different Parameters for

Investment
28

23
22
21
19 19
17 17
1516

10 9
9
8 8

3
2 1 2
1 1 1 0
0 0

Savings A/c & Bank

StockFD
MarketMutual Funds Bonds Properties
Highly
Moderately Neutral Moderately Highly Dis-satisfied

41
Interpretation:

From the above table and chart, it can be analysed that as compared to other
sources of investment, investors are moderately satisfied with their investment in
stock market and properties. It can be clearly seen that investors are dis-satisfied
with their investment in savings A/c & Bank FD as compared to other sources of
investment.

42
 Respondent’s Decision Regarding buying/selling shares.

Difficulty in buying shares 8

Easily buying shares 42
Total 50

Respondent’s Decision Regarding

buying/selling shares.

42

Difficulty in buying shares Easily buying shares

Interpretation:

From the above table and chart, it can be analysed that out of 50 respondents,
nearly 42 respondents do not find any difficulty in buying or selling shares while 8
respondents find difficulty in buying or selling shares.

43
 Respondent’s Difficulties for Investment in Stock Market

Agree Partially Neutral Partially Disagree

Agree Disagree
Delay in 8 13 12 7 10
transfer of
shares
High 16 9 14 6 5
amount of
Brokerage
Delay in 9 11 14 6 10
Payment
Volatility of 28 10 3 5 4
stock
market

Respondent’s Difficulties for Investment

in Stock Market
28

16
14 14
13
12
11
10 10 10
9 9
8
7
6 6
5 5
4
3

Delay in transfer ofHigh amount of sharesBrokerage

Delay in PaymentVolatility of stock
market
Agree Partially Agree Neutral Partially Disagree Disagree

44
Interpretation:

From the table and chart, it can be analysed that the main reason of respondents for
not investing in stock market is volatility of stock market and delay in receiving
payment of the investment made.

45
Chapter – 7

FINDINGS

46
 FINDINGS

 From the survey conducted found that there are more male investors
as compared to female investors.
 From the survey conducted we found that most of the investors are
experienced, and they have knowledge about stock market and investors are
investing more in equity and mutual fund segment.
 Most of the investors are below 35 years which means that young population
is ready to take risk and invest in stock market.
 Investors are provided with good facilities and features which motivates
them to invest in stock market.
 Most of investors are facing problem of volatility of market and high amount
of brokerage by the financial advisors...
 Approximately 84% are not finding difficulty in buying or selling shares but
their reason for not investing is they opt for other investment options.
 Investors prefer to invest in stock market because it will contribute to their
wealth creation objective.
 Investors expect to grow their money invest at a average rate as it will meet
their future expectations.

47
 Chapter – 8

RECOMMENDATIONS

48
 RECOMMENDATIONS

 Awareness should be created among the young population regarding trading

in stock market.
 Proper knowledge about investment in stock market will lead people to take
risk and invest their money in stock market.
 Adequate knowledge about stock market will remove the myth of frauds and
cheating of investment in stock market.
 People prefer Ease of transactions and security. So, brokerage firms should
focus on security and making transactions as simple as possible with
simple usage of technology.
 Company should focus on minimising cost of transactions.

49
 Chapter – 9

CONCLUSION

50
 CONCLUSION

Investment planning is choice of individual. Investment helps to boost an

individual's growth and economic growth too. If an individual does investment
planning, then they can invest their earnings as per choice of source of investment.

In my survey, mostly male investors are there, and they are ready to invest in
stock market. Also, young population is ready to take risks and invest their money in
stock market. Mostly investors are investing for long term with an intension to get
maximum benefits which will meet their future expectations. In stock market, prices
change as per the demand and supply. If investment is done in right company, then it
will help in achieving the objective of wealth creation for investors. I have also
found that people who are investing in stock market are satisfied with their decision
of investment as stock market being a volatile source of investment it gives good
return of investment done. Hence as per my survey investors are satisfied with their
investment done in stock market.

51
 LIMITATION OF THE STUDY

This analysis is based upon investor's perception toward various investments

in stock market. This analysis would be focusing on the information from the
investor about their perception, knowledge and behaviour on different financial
product.

The various limitation of the study is:

 Only 50 responses have been considered for this study.

 The total number of financial instruments in the market is so large that it
needs a lot of resources to analyse them all.
 A few respondents might have furnished the required information from their
momentary memory and invented temper and hence the collected data might
be suggested to bias.
 As analysis is based on primary data and secondary data.
 The size of the sample compared to the population is small and hence its
night does not signify the ideas of entire population.

52
 BIBLIOGRAPHY

Vanish Kumar Singh (2006): People's perception, behaviour and attitude towards
investment.

Sudalai Muthu and Senthil Kumar (2008): Financial behaviour of mutual fund
investors in connection with other schemes

Sunil Gupta (2009): Attitude of investors towards investment in securities in

connection with different group of people

Manish Mittal and Vyas (2009): Investor's weaknesses which come in way while
investing earnings.

53
 REFERENCES

www.angelone.in

www.bseindia.com

www.ibef.org

www.nseindia.com

www.sebi.gov.in

www.moneycontrol.com

54
 ANNEXURE

 Personal Details: -
1. Name:
2. Gender
 Male
 Female

3. Age
 Below 25 years
 25-35 years
 35-45 years
 45-55 years
 Above 55 years

4. Occupation
 Business
 Government Employee
 Private Employee
 Professional
 Student

5. Annual Income
 Less than Rs. 2,50,000
 Rs. 2,50,000 – Rs. 5,00,000
 Rs. 5,00,000 – Rs. 10,00,000
6. Do you invest in stock market?
 Yes
 No

 Investor Awareness: -

7. Through which market do you invest?

55
  Primary Market
 Secondary Market
 Both
8. What is your investment objective?
 Long Term
 Short Term
 Dividend
 Long Term & Short Term
9. What are the benefits come in your mind while investing?
 Wealth Creation
 Tax Benefit
 Future Expectation
10. At which rate would you like to invest?
 Steady Rate
 Average Rate
 Rapidly Growing Rate
11. From where did you find reference for investment?
 Internet
 Friends & Family
 Newspapers
 Financial Advisor
 Other
12. Rate the following parameters for investment as per your preference.

Highly Moderately Neutral Moderately Highly

Satisfied Satisfied Dis- Dis-
Satisfied Satisfied
Savings A/C, Bank FD
Stock Market
Mutual Funds
Bonds
Properties

56