1

CHAPTER-1 INTRODUCTION 1.1 INTRODUCTION

Capital market development has been closely related to an economys overall development. As an economy develops, the indirect lending by savers to investors trend to become more efficient. As economy grows further, specialized financial intermediaries and securities market develops. As securities market mature, investors can invest their funds directly in financial as groups issued by firms. Indian capital markets are one of the oldest markets in Asia. Its history dates back to nearly 200 years ago. The earliest records of security dealings in India are meager and obscure. The east India Company was the dominant institution in those days and business in its loan securities used to be transacted towards the close of the eighteenth century. By 1830s business on corporate stocks and shares in Bank and cotton presses took place in Bombay. Though the trading list was broader in 1839, there were only half a dozen brokers recognized by banks and merchants during 1830 and 1850. Yet, the activities in the market were not significant mainly due to the stringent rules and regulations that were in existence, which curtailed the growth of the market thereby depriving the Indian economy of the role of capital market which should have acted as a propeller to the pace of industrial growth. Investment takes place within the purchase of any group that offers the expectation of the future income or profit or both. Every individual who has more money then he needs for current consumption is potentially an investor. In the present day conditions, finance is scarce and those investors try to maximize their return. The art of investment is to see that the return is maximized with the minimum of amount of risk, which is inherent investment. All the sections of the society, the household group contribute much of the capital, forming the lifeblood for the economy. Small investors contribute heavily

2 to the economic and social development of the country. Investors need to preserve and build their wealth various alternatives. The investors should think and examine all the aspects before making any investment decision. The investment in stock market involves many risks. At the same time the investor may get high amount of return if he select it in a right path. The investors are bound to take all precautions to protect their interests. If they invest in any security without proper evaluation of the risk, they may have every reason to complain. Such grievances have been increasing in number in recent years. In order to safeguard the interest of investors the Securities and Exchange Board of India (SEBI), the Company Law Board (CLB), the Reserve Bank of India (RBI) and the Stock Exchanges confer on the investors several rights that they can exercise in order to protect themselves from the perils of the stock market. The SEBI as well as the other bodies associated with the affairs of the corporate sector not only put a check on the malpractices of the functioning of the capital market. In spite of all these positive developments, there has been a greater concern for the need for increased protection to the investor community. Equity as a group class, offers better long-term and superior returns as compared to other instruments for investors. In the equity investment the risk is high the return is also high. So, the investors need to understand how risks likely to impact them personally.

1.2 ABOUT THE STUDY

Money is not everything; but without money man is nothing. Each and every body run after money and they want to multiply their savings, more incomes and more avenues for investment have led to the ability and willingness of people to save and invest their funds. It is seen that, Indians are the highest savers when compared to others. Capital market is one of the places to invest money. The Indian capital market provides excellent investment opportunities to domestic investors in both the equity and fixed income segments. Indian investors form the bedrock of the Indian capital market. Equity shares, with reference to any company limited by shares, are those which are not preference shares. If an investor chooses to invest in equity shares then he is called as equity investor. The amount of investment is generally supposed to depend upon psychological and sociological factors of the investor. The objective of any investment is to minimize the risk involved in investment and maximize the return. This arises to the following questions. 1. What are the factors considered while buying a share? 2. What source of information do the investors use before investing? 3. What is the main motive of their investment? 4. Are all the investors following same type of behavior?

4 PRODUCT PROFILE EQUITY These are also called variable securities. From the point of view of the company it is advantageous to issue these securities as payment of dividend is not mandatory. The investors view is that, this is the best way of investment as the shareholdings can be converted into cash. Further, the investors also participate in the earnings and wealth of the company. Special Features

Instant Sale of any/all Securities blocked in DP Account (without transferring to Broker account) Purchase of securities also allowed against the value of securities sold.

Online exposure against transfer of funds. Advantage of reduced brokerage if squared-up within a settlement. Opportunity to buy or sell any scrips on both NSE and BSE. Documents and Funds on the same day as exchange payout.

MARGIN Intra Settlement Trading with intention of squaring up the positions within the same settlement against margin created. Special Features

Exposure allowed up to 10 times of the margin. Option of cash/scrip margin for exposure. Block securities and avail instant exposure. Exposure allowed against the available credit balance in the account. Delivery based transactions allowed to the extent of two times the margin.

5 SPOT SELLING For spot sale of securities, funds are credited to your bank account the same evening, with additional brokerage. Special Features for both equity and derivatives

Common account for equity and derivatives. Common margin for both derivatives and equity segments Real-time SPAN margining. Facility of spread orders (two legged and three legged).

1.3 ABOUT THE INDUSTRY

INTRODUCTION In this chapter Indian capital markets, financial market in India and investors protection in all market and regulatory authorities to protect etc., are discussed. THE INDIAN CAPITAL MARKETS The Indian Capital Markets have witnessed a transformation over the last decade. India is now placed among the mature markets of the world. Key progressive initiatives in recent years include: The depository and share dematerialization systems that have enhanced the efficiency of the transaction cycle Replacing the flexible, but often exploited, forward trading mechanism with rolling settlement, to bring about transparency The InfoTech-driven National Stock Exchange (NSE) with a national presence (for the benefit of investors across locations) and other initiatives to enhance the quality of financial disclosures. Corporatization of stock exchanges. The Securities and Exchange Board of India (SEBI) has effectively been functioning as an independent regulator with statutory powers.

FINANCIAL MARKETS A financial market is a mechanism which allows people to trade, commodities, normally governed by the theory of supply and demand and thereby allocates resources through a price mechanism. It typically involves a bid and asks process. Both general markets, where many commodities are traded and specialized markets (where only one commodity is traded) exist. Markets work by placing many interested sellers in one "place", thus making them easier to find for prospective buyers. An economy which relies primarily on interactions

7 between buyers and sellers to allocate resources is known as a market economy in contrast either to a command economy or to a non-market that is based, such as a gift economy. FINANCIAL MARKETS FACILITATE:

The raising of capital (in the capital markets); The transfer of risk (in the derivates markets); and International trade (in the currency markets).

TYPES OF FINANCIAL MARKETS The financial markets can be divided into different subtypes;

Capital Markets which consist of:

o

Stock markets, which provide financing through the issuance of shares or common markets, and enable the subsequent trading thereof.

Bond markets, which provide financing through the issuance of bonds, and enable the subsequent trading thereof.

Commodity Markets, which facilitate the trading of commodities. Money Markets, which provide short term debt financing and investment. Derivates Markets, which provide instruments for the management of financial risk.

INVESTMENT Investment is an activity that is engaged in by people who have savings, i.e. investments are made from savings, or in other words, people invest their savings. But all savers are not investors. Investment is an activity which is different from savings. The essential quality of an investment is that it involves waiting for a reward. Investment involves the commitment of resources which have been saved in the hope that some benefits will accumulate in future.

8 SPECULATION A person may be interested in making a quick short term profit from the fluctuations in the prices of the stock market. Such a person is known as a speculator. Speculators are traders who intend to make high returns within a short span of time, making use of the short term fluctuations in security. Long Buy If a speculator feels that a security is under priced or that a security which is correctly priced at the moment is likely to show a rising trend, then he would like to buy the purpose of selling it at a higher price when the price rises as anticipated. Short sale On the contrary, if a speculator estimates that a security is overpriced and its price is likely to decline shortly, he would like to sell the security at the current price and buy it sometime later when the price declines so as to deliver the security sold at the time of settlement of the trade. There are four types of speculators are involved

1 Bull 2 Bear 3 Lame duck 4 Stag GAMBLING Typical examples of gambling are horse races, card games, lotteries, etc. Gambling consists in taking high risks not only for high returns, but also for thrill and excitement. Gambling is unplanned and non scientific, without knowledge of the nature of the risk involved. It is surrounded by uncertainty and is based on tips and rumors. In gambling artificial and unnecessary risks are created for increasing the returns.

9 LONG TERM GAIN Long-term Gain: - If you owned the asset for more than one year, any gain (or loss) is classified as a long-term gain or loss. SHORT TERM GAIN Short-term Gain: - If you owned the asset for one year or less, any gain (or loss) is classified as a short-term gain or loss. RAISING CAPITAL Without financial markets, borrowers would have difficulty finding lenders themselves. Intermediaries such as banks help in this process. Banks take deposits from those who have money to save. They can then lend money from this pool of deposited money to those who seek to borrow. Banks popularly lend money in the form of loans and mortgages. More complex transactions than a simple bank deposit require markets where lenders and their agents can meet borrowers and their agents, and where existing borrowing or lending commitments can be sold on to other parties. A good example of a financial market is a stock exchange. A company can raise money by selling shares to investors and its existing shares can be bought or sold.

10

1.4 ABOUT THE COMPANY

India Infoline is a one-stop financial services shop, most respected for quality of its advice, personalized service and cutting-edge technology.

VISION
The vision is to be the most respected company in the financial services space. INDIA INFO LINE GROUP The India Infoline group, comprising the holding company, India Info line Limited and its wholly-owned subsidiaries, straddle the entire financial services space with offerings ranging from Equity research, Equities and derivatives trading, Commodities trading, Portfolio Management Services, Mutual Funds, Life Insurance, Fixed deposits, GoI bonds and other small savings instruments to loan products and Investment banking. India Infoline also owns and manages the websites www.indiainfoline.com and www.5paisa.com The company has a network of 976 business locations (branches and subbrokers) spread across 365 cities and towns. It has more than 800,000 customers. INDIA INFOLINE LTD India Infoline Limited is listed on both the leading stock exchanges in India, viz. the Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and is also a member of both the exchanges. It is engaged in the businesses of Equities broking, Wealth Advisory Services and Portfolio Management Services. It offers broking services in the Cash and Derivatives segments of the NSE as well as the Cash segment of the BSE. It is registered with NSDL as well as CDSL as a depository participant, providing a one-stop

11 solution for clients trading in the equities market. It has recently launched its Investment banking and Institutional Broking business.

A SEBI authorized Portfolio Manager; it offers Portfolio Management Services to clients. These services are offered to clients as different schemes, which are based on differing investment strategies made to reflect the varied risk-return preferences of clients. INDIA INFOLINE MEDIA AND RESEARCH SERVICES LIMITED. The content services represent a strong support that drives the broking, commodities, mutual fund and portfolio management services businesses. Revenue generation is through the sale of content to financial and media houses, Indian as well as global. It undertakes equities research which is acknowledged by none other than Forbes as 'Best of the Web' and 'a must read for investors in Asia'. India Infoline's research is available not just over the internet but also on international

12 wire services like Bloomberg (Code: IILL), Thomson First Call and Internet Securities where India Infoline is amongst the most read Indian broker INDIA INFOLINE COMMODITIES LIMITED India Infoline Commodities Pvt Limited is engaged in the business of commodities broking. Our experience in securities broking empowered us with the requisite skills and technologies to allow us offer commodities broking as a contra-cyclical alternative to equities broking. We enjoy memberships with the MCX and NCDEX, two leading Indian commodities exchanges, and recently acquired membership of DGCX. We have a multi-channel delivery model, making it among the select few to offer online as well as offline trading facilities. INDIA INFOLINE MARKETING & SERVICES India Infoline Marketing and Services Limited is the holding company of India Infoline Insurance Services Limited and India Infoline Insurance Brokers Limited. (a) India Infoline Insurance Services Limited is a registered Corporate Agent with the Insurance Regulatory and Development Authority (IRDA). It is the largest Corporate Agent for ICICI Prudential Life Insurance Co Limited, which is India's largest private Life Insurance Company. India Infoline was the first corporate agent to get licensed by IRDA in early 2001. (b) India Infoline Insurance Brokers Limited India Infoline Insurance Brokers Limited is a newly formed subsidiary which will carry out the business of Insurance broking. We have applied to IRDA for the insurance broking licence and the clearance for the same is awaited. Post the grant of license, we propose to also commence the general insurance distribution business.

13 PRODUCTS AND SERVICES India Infoline are a one-stop financial services shop, most respected for quality of its advice, personalised service and cutting-edge technology. EQUITIES Indiainfoline provided the prospect of researched investing to its clients, which was hitherto restricted only to the institutions. Research for the retail investor did not exist prior to Indiainfoline. Indiainfoline leveraged technology to bring the convenience of trading to the investors location of preference (residence or office) through computerised access. Indiainfoline made it possible for clients to view transaction costs and ledger updates in real time. PMS Our Portfolio Management Service is a product wherein an equity investment portfolio is created to suit the investment objectives of a client. We at Indiainfoline invest your resources into stocks from different sectors, depending on your risk-return profile. This service is particularly advisable for investors who cannot afford to give time or don't have that expertise for day-to-day management of their equity portfolio. RESEARCH Sound investment decisions depend upon reliable fundamental data and stock selection techniques. Indiainfoline Equity Research is proud of its reputation for, and we want you to find the facts that you need. Equity investment professionals routinely use our research and models as integral tools in their work.They choose Ford Equity Research when they can clear your doubts.

14 COMMODITIES Indiainfolines extension into commodities trading reconciles its strategic intent to emerge as a one-stop solutions financial intermediary. Its experience in securities broking has empowered it with requisite skills and technologies. The Companys commodities business provides a contra-cyclical alternative to equities broking. The Company was among the first to offer the facility of commodities trading in Indias young commodities market (the MCX commenced operations only in 2003). Average monthly turnover on the commodity exchanges increased from Rs 0.34 bn to Rs 20.02 bn. The commodities market has several products with different and non-correlated cycles. On the whole, the business is fairly insulated against cyclical gyrations in the business. MORTGAGES During the year under review, Indiainfoline acquired a 75% stake in Moneytree Consultancy Services to mark its foray into the business of mortgages and other loan products distribution. The business is still in the investing phase and at the time of the acquisition was present only in the cities of Mumbai and Pune. The Company brings on board expertise in the loans business coupled with existing relationships across a number of principals in the mortgage and personal loans businesses. Indiainfoline now has plans to roll the business out across its pan-Indian network to provide it with a truly national scale in operations.

INVEST ONLINE Indiainfoline has made investing in Mutual funds and primary market so effortless. All you have to do is register with us and thats all. No paperwork no queues and No registration charges.

15

INVEST IN MF Indiainfoline offers you a host of mutual fund choices under one roof, backed by in-depth research and advice from research house and tools configured as investor friendly. APPLY IN IPOs You could also invest in Initial Public Offers (IPOs) online without going through the hassles of filling ANY application form/ paperwork. SMS Stay connected to the market. The trader of today, you are constantly on the move. But how do you stay connected to the market while on the move? Simple, subscribe to India Infoline's Stock Messaging Service and get Market on your Mobile! There are three products under SMS Service: 1 Market on the move. 2 Best of the lot. 3 VAS (Value Added Service) INSURANCE An entry into this segment helped complete the clients product basket; concurrently, it graduated the Company into a one-stop retail financial solutions provider. To ensure maximum reach to customers across India, we have employed a multi pronged approach and reach out to customers via our Network, Direct and Affiliate channels. Following the opening of the sector in 1999-2000, a number of private sector insurance service providers commenced operations aggressively and helped grow the market. The Companys entry into the insurance sector derisked the Company from a predominant dependence on broking and equity-linked revenues.

16

CHAPTER 2 MAIN THEME OF THE PROJECT 2.1 OBJECTIVES OF THE STUDY

The study was conducted with the following objectives. i. ii. iii. iv. To know about the capital market and financial market. To identify the equity investors attitude. To find out the personal factors associated with the investors attitude. To identify the main motive of their investment.

17

2.2 LIMITATIONS OF THE STUDY

1 The scope of the study is limited to only the particular region. 2 There was only limited time to conduct the survey. 3 The data collected from the respondents are qualitative in nature (i.e.) views, opinion, perception, etc. These factors may be changed for time to time. 4 The study and the findings need suitable modification when the market condition changes. 5 Only a few questions were focused on finding out the opinion and attitude of the respondents. 6 The study was conducted only in the area of Pollachi town and the sample size was limited to 125. So the results cannot be of 100% accurate.

18

2.3 RESEARCH METHODOLOGY

According to Clifford woody, Research methodology comprises defining and redefining problems, formulating hypothesis or suggested conclusions; collecting, organizing and evaluating data making deduction and reaching conclusions; and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis. It consists of certain scientific steps for successful execution and objective of the study. 2.3.1 PILOT STUDY A pilot study is a model of full research study but on a smaller scale. The pilot study helps by providing data needed to plan the larger study and by identifying areas where the things that do go wrong. We correct them before we start the full study. 2.3.2 RESEARCH DESIGN The researcher has adopted Descriptive study. It is concerned with the accurate portraying of a particular situation. In descriptive research study the researcher is expected to have a prior knowledge of the research problem. Before launching the study a number of books and journals were referred, thus give an insight into study. Research Plan Data source Research Approach Research instrument Contact Method 2.3.3 PRIMARY DATA Primary data were collected from the people who are investing in share market in Pollachi through structured questionnaire. : Primary : Survey Method : Questionnaire : Direct Person

19 SAMPLE DESIGN A sample design is definite plan for obtaining a sample from a given population. It refers to the technique or procedure the researcher could adopt in selecting items for the sample. SAMPLING TECHNIQUE The study has adopted convenient sampling technique. The information is collected through questionnaires from the selected individuals who were among the investing public of Pollachi town. SAMPLE SIZE The sample size taken for this study was 125 respondents, among the people who were investing in share market in Pollachi town.

20 2.3.4 TOOLS FOR DATA ANALYSIS STATISTICAL TOOLS USED: The following statistical tools have been used for analyzing the collected data, 1. Simple Percentage Analysis Method No of respondents Percentage of respondents= Total No. of Respondents 2. Chi-square test Chi- Square ( )
2

x 100

(O E ) 2 E =

Degrees of Freedom O = Observed Frequency E = Expected Frequency C = No. of Columns R = No. of Rows

= (r-1) (c-1) where

21

2.4 REVIEW OF LITERATURE

A vast number of studies have been conducted both in India and abroad, relating to investors attitude. Those are R.C.Lewellen and G.G.Schlarbaum (1973) made an attempt to explain the attributes and attitudes of the individual investor in their studies entitled the individual investor: attributes and attitudes. Blume, M.E, and I. friend (1975) attempted to ascertain behavior at both micro and macro levels in their studies titled the assets structure of individual portfolio and some implications for utility functions. In this study Gooding, A.E (1975) explained the decision behavior and the perception of common stock. In Indian an early attempt was made by Guptha, L.C (1991) in his study Indian share owner: A survey. His main aim was to ascertain the behavior of share owners. Jawaharlal (1993) in his study understanding Indian has probed in to the view on different sources of information. Muthupandi, M. (2000) has conducted a study on the title factors influencing investment decision which reveals the various characteristics of an investor. A sample of 100 investors was selected in Madurai city. The study reveals that marital status, nature of occupation and income of affects the investment decision Rajarajans V. (2000) study on investment life styles and investment characteristics examined the investment size, pattern and future investment preference of individual investors on the basis of their lifestyles. Active investors group and passive investors group have short-term perspective while making their investment decisions. And most of the investors read two or more sources of information to make investment decision and most of them tend to make investment decision on their own.

22

CHAPTER-3 ANALYSIS AND INTERPRETATION 3.1. SIMPLE PERCENTAGE ANALYSIS

TABLE NO -1 GENDER OF THE RESPONDENTS Sample size: 125 GENDER Male Female Total Source: Primary Data INTERPRETATION The table no 1 shows that majority of the investors are male. The number amounts to 102 accounting for 82 percent. Out of 125 equity investors selected for this study, only 23 (18%) are female investors. It is inferred that male investors are very much interested in the share investment than the female investors NO. OF RESPONDENTS 102 23 125 PERCENTAGE 82 18 100

CHART NO-1

23 GENDER OF THE RESPONDENTS

90 80 70
PERCENTAGE

82

60 50
Percentage

40 30 20 10 0
Male Female

18

GENDER

TABLE NO -2

24

AGE OF THE RESPONDENTS Sample size: 125 AGE Below 35 36 to 50 Above 50 Total Source: Primary data INTERPRETATION The table no 2 shows that out of the 125 investors,66(53%) investors come under the age group up to 35 and 43(34%) belonging to the age group which ranges 36 and 50 and the remaining 16(13%) are belongs to the last category. NO. OF RESPONDENTS 66 43 16 125 PERCENTAGE 53 34 13 100

CHART NO -2 AGE OF THE RESPONDENTS

25

12%

35%

53% Up to 35 36 to 50 Above 50

TABLE NO- 3 MARITAL STATUS OF THE RESPONDENTS

26 Sample size: 125 MARITAL STATUS Married Unmarried Total Source: Primary Data INTERPRETATION The table no 3 shows that out of the total 125 investors, 67(54%) of them are married, and 58(46%) are married. The marital status of the investors reveals that a majority of investors numbering 67 are married. NO. OF RESPONDENTS 67 58 125 PERCENTAGE 54 46 100

CHART NO - 3 MARITAL STATUS OF THE RESPONDENTS

27

Married Unmarried

46% 54%

TABLE NO - 4 EDUCATION OF THE RESPONDENTS Sample size: 125

28 NO. OF RESPONDENTS 25 70 30 125

EDUCATION Up to HSC Under Graduates Post graduates Total Source: Primary Data INTERPRETATION

PERCENTAGE 20 56 24 100

The table no 4 shows that around 70(56%) are graduates and 30(24%) investors are post graduates and around 25(20%) are up to HSC level. It is interesting to note that most of the investors are with under graduate level of education.

CHART NO- 4 EDUCATION OF THE RESPONDENTS

29

60 50 PERCENTAGE 40 30 20 10 0 Up to HSC 20

56

24

Under Graduates EDUCATION

Post graduates

TABLE NO - 5 OCCUPATION OF THE RESPONDENTS

30 Sample size: 125 OCCUPATION Agriculture Business Profession Employed Total Source: Primary Data INTERPRETATION The table no 5 shows that majority of the 49 (39%) investors are employed. Investors whose occupation has business are 36(29%). Only 17 (14%) investors are agriculturist and 23(18%) are the professionals. It clearly shows that most of the investors are employed and the employed persons are very much interested in equity investment than others. NO. OF RESPONDENTS 17 36 23 49 125 PERCENTAGE 14 29 18 39 100

CHART NO- 5 OCCUPATION OF THE RESPONDENTS

31

45 40 35 30
PERCENTAGE

39

29

25
Percentage

20 15 10 5 0
e sin es s

18 14

io n

Pr of es s

ric ul

Ag

TYPE OF BUSSINESS

TABLE NO 6 FAMILY MEMBERS OF THE RESPONDENTS

Em pl o

Bu

ye d

tu r

32 Sample size: 125 FAMILY MEMBERS Up to 2 3 to 4 Above 4 Total Source: Primary Data INTERPRETATION The table no 6 shows that out of 125 investors, 14(11%) investors whose family members are up to 2 and the majority of investors 75(60%) whose family members are between 3 and 4 the remaining 36(29%) whose family members are above four in numbers. NO. OF RESPONDENTS 14 75 36 125 PERCENTAGE 11 60 29 100

CHART NO- 6 FAMILY MEMBERS OF THE RESPONDENTS

33

29%

11%
Up to 2 3 to 4 Above 4

60%

TABLE NO 7 NUMBER OF DEPENDENTS OF THE RESPONDENTS

34

Sample size: 125 DEPENDENTS Nil Up to 2 Above 3 Total Source: Primary Data INTERPRETATION From the above table no 8 we can understand that 39 (31%) investors are having no dependents, while 50(40%) investors are having depends up to 2. There are more than two dependents for 36(29%) investors. It can be seen from the above table no that most of the investors have up to two dependents in their family. NO. OF RESPONDENTS 39 50 36 125 PERCENTAGE 31 40 29 100

CHART NO- 7 NUMBER OF DEPENDENTS OF THE RESPONDENTS

35

29

31

Nil Up to 2 Above 3

40

TABLE NO 8 MONTHLY INCOME OF THE RESPONDENTS

36 Sample size: 125 MONTHLY INCOME Up to Rs.10000 Rs.10001 to 20000 Above Rs.20000 Total Source: Primary Data INTERPRETATION The table no 9 shows that there are 41(33%) investors in the category of income up to Rs.10,000, 55(44%) are between Rs.10,001 and Rs.20,000, remaining 29(23%) investors are placed under the third category of income, more than Rs.20,000. It is clear from the table that the percentage of investors are very high in case of second group whose total monthly income up to Rs.20, 000. NO. OF RESPONDENTS 41 55 29 125 PERCENTAGE 33 44 23 100

CHART NO- 8 MONTHLY INCOME OF THE RESPONDENTS

37

23% 33% Up to Rs; 10000 Rs; 10001 to 20000 Above Rs; 20000 44%

TABLE NO -9 MONTHLY SAVINGS OF THE RESPONDENTS

38 Sample size: 125 MONTHLY SAVINGS Nil Up to 2000 2001 to 4000 Above 4001 Total Source: Primary Data INTERPRETATION The table no 10 shows that out of the 125 investors, 9(7%) of them are not having any habit of savings. Then 50(40%) investors are having the habit of savings up to Rs.2000 per month and 26(21%) investors with the tendency of saving between Rs.2001 to 4000 and above 4000 per month are 40(32%) investors. NO. OF RESPONDENTS 9 50 26 40 125 PERCENTAGE 7 40 21 32 100

CHART NO -9 MONTHLY SAVINGS OF THE RESPONDENTS

39

7%

32%
Nil Up to 2000

40%

2001 to 4000 Above 4000

21%

TABLE NO -10 INVESTMENT EXPERIENCE OF THE RESPONDENTS Sample size: 125

40 NO. OF RESPONDENTS 65 49 11 125

EXPERIENCE Below 5 years 6 to 10 years Above 10 years Total Source: Primary Data INTERPRETATION

PERCENTAGE 52 39 9 100

The table no 11 shows that out of 125 investors, there are 65(52%) investors having low experience who are investing in shares in the last five years. Only 49(39%) investors are having 6 to 10 years of experience. Remaining 11(9%) investors having much experience in investment field who have been invested in shares for more than 10 years.

CHART NO-10 INVESTMENT EXPERIENCE OF THE RESPONDENTS

41

60 52 50 40
PERCENTAGE

39

30 20 10 0
Below 5 years 6 to 10 years Above 10 years

Percentage

YEARS OF EXPERIENCE

TABLE NO -11 SOURCE OF INVESTMENT IDEA OF THE RESPONDENTS

42

Sample size: 125 SOURCE Own Friends and Relatives Brokers Total Source: Primary Data INTERPRETATION The table no 12 shows that out of 125 investors, 40(32%) investors come under their own idea to invest in share market. There are 64(51%) investors in their friends & relatives influences. Under brokers influence, 21(17%) investors are there. It is clear from the table that most of the investors are influenced by their friends & relatives to select the shares to invest. NO. OF RESPONDENTS 40 64 21 125 PERCENTAGE 32 51 17 100

CHART NO-11 SOURCE OF INVESTMENT IDEA OF THE RESPONDENTS

43

60 51 50
PERCENTAGE

40 32 30 20 10 0
Own Friends & relatives SOURCE Brokers Percentage

17

TABLE NO- 12 MOTIVE OF BUYING SHARES BY THE RESPONDENTS Sample size: 125

44 NO. OF RESPONDENTS 48 77 125

MOTIVE Speculation Investment Total Source: Primary Data INTERPRETATION

PERCENTAGE 38 62 100

The table no 13 shows the classification of the investors based on their motive of buying the shares. Out of 125 investors, there are 48(38%) investors invested in speculation. The investors who buy the shares as investment are 77(62%). It is clear from the above table that most of the investors are not involved in speculation.

CHART NO-12 MOTIVE OF BUYING SHARES BY THE RESPONDENTS

45

38%
Speculation Investment

62%

TABLE NO -13 TYPE OF GAIN EXPECTED BY THE RESPONDENTS Sample size: 125

46 NO. OF RESPONDENTS 49 55 21 125

TYPE OF GAIN Short term gain Long term gain Dividend income Total Source: Primary Data INTERPRETATION

PERCENTAGE 39 44 17 100

The table no 14 shows that the investors whose main motive is short-term gain are grouped under first category. The second category comprises of investors whose main motive is long-term gain. The investors who prefer dividend income are grouped under the third category. Out of 125 investor investors 49(39%) are belongs to the first category, 55(44%) investors come under the second category. Remaining 21(17%) investors belongs to the third category. Thus, it is observed from the table that most of the investors prefer long-term gain.

CHART NO-13 TYPE OF GAIN EXPECTED BY THE RESPONDENTS

47

50 45 40 35
PERCENTAGE

44 39

30 25 20 15 10 5 0
Short term gain Long term gain Dividend income

Percentage

17

TYPE OF GAIN

TABLE NO -14 TYPE OF MARKET PREFERRED BY THE RESPONDENTS Sample size: 125

48 NO. OF RESPONDENTS 41 35 49 125

TYPE OF MARKET Primary Secondary Both Total Source: Primary Data INTERPRETATION

PERCENTAGE 33 28 39 100

The table no 15 shows that out of 125 investors, there are 41(33%) investors are given their first preference to the primary issue of the shares. Further, 35(28%) investors are preferred secondary market. It is clear from the table that most of the investors 49(39%) are preferred both the primary and secondary market.

CHART NO-14 TYPE OF GAIN EXPECTED BY THE RESPONDENTS

49

33% 39%

Primary 28% Secondary Both

TABLE NO -15 TIME TAKEN FOR INVESTMENT DECISIONS BY THE RESPONDENTS Sample size: 125 INVESTMENT NO. OF PERCENTAGE

50 DECISION Within an hour Within few days Within a week More than a week Total Source: Primary Data INTERPRETATION The table no 16 shows that out of 125 investors, first category consists of 12(10%) investors who take investment decision within an hour. The second category comprises of investors who take investment decision within few days i.e.43 (34%). Third category consists of investors who take investment decision within a week i.e.22 (18%). The investors who take investment decision more than a week comes under the fourth category i.e.48 (38%). RESPONDENTS 12 43 22 48 125

10 34 18 38 100

CHART NO-15 TIME TAKEN FOR INVESTMENT DECISIONS BY THE RESPONDENTS

51

40 35 30
PERCENTAGE

38 34

25 20 15 10 5 0
10 18
Percentage

Within an hour

Within few days

Within a week

More than a week

TIME TAKEN

TABLE NO -16 SOURCE OF INVESTMENT OF THE RESPONDENTS

52

Sample size: 125 SOURCE Own savings Agriculture& Business income Borrowings Others Total Source: Primary Data INTERPRETATION The table no 17 shows that out of 125 investors, 48(38%) investors only use their savings for making investment in shares. 41(33%) investors use their agricultural and business income for making investment in shares. 23(18%)investors use their other sources for investment in shares. 13(11%) investors borrow for investment in shares. It is clear from the table that most of the investors use their savings for investment in shares. NO. OF RESPONDENTS 48 41 13 23 125 PERCENTAGE 38 33 11 18 100

CHART NO-16 SOURCE OF INVESTMENT OF THE RESPONDENTS

53

40 35
PERCENTAGE

38 33

30 25 20 15 10 5 0
om e s s i ng ing sa v inc rro w Bu sin es s Ca pi t al Ow n Bo ga ins

18 11

Percentage

Ag

ric ul t ur

e&

SOURCE

TABLE NO - 17 RESPONDENTS PROPORTION OF WEALTH IN SHARES Sample size: 125

54 NO. OF RESPONDENTS 61 56 8 125

PROPORTION Up to 5% 6% to 10% 10 %-20% Total Source: Primary Data INTERPRETATION

PERCENTAGE 49 45 6 100

The table no 18 shows that the first category consists of 61(49%) investors who have invested up to 5% of their wealth in shares. The second category consists of 56(45%) investors whose proportion of the wealth in shares is 6% to 10%. The third category consists of 8(6%) investors whose proportion of the wealth in shares is more than 10%. No investor is there in the category of investing above 20% of their wealth in shares.

CHART NO-17 RESPONDENTS PROPORTION OF WEALTH IN SHARES

55

60

50

49 45

PERCENTAGE

40

30

Percentage

20

10

6 0
Up to 5% 6% to 10% 10 %-20%) Above 20%

PROPORTION

TABLE NO -18 RESPONDENTS PREFERENCE OF INVESTMENT NEXT TO EQUITIES Sample size: 125

56 NO. OF RESPONDENTS 35 28 36 26 125

OTHER AVENUES Mutual funds Real estate Gold Bank deposit Total Source: Primary Data INTERPRETATION

PERCENTAGE 28 22 29 21 100

The table no 19 shows that first category consists of 35 (28%) investors who invest in mutual fund also along with equity shares. The second category consists of. 28 (22%) investors who invest in real estates also in addition to the shares. The third category consists of 36 (29%) investors who invest gold in addition to the shares. The fourth group consist of 26 (21%) investors who invest some amount in bank deposit in additional to shares. From this table, it is observed that the investors who are having mutual fund investment as their preference are highly invested in shares.

CHART NO-18 RESPONDENTS PREFERENCE OF INVESTMENT NEXT TO EQUITIES

57

35

30

28

29

25 22 PERCENTAGE 20 21
Percentage

15

10

0 Mutual funds Real estate Jewels Bank deposit PREFERANCE

TABLE NO - 19 NUMBER OF INDUSTRIES INVESTED BY THE RESPONDENTS

58

Sample size: 125 INDUSTRIES One 2 or 3 More than 3 Total Source: Primary Data INTERPRETATION The table no 20 shows that out of 125 investors, 23(18%) come under first category who invest in only one industry. The second category consists of 56(45%) investors who hold shares in 2 to 3 industries. Third category consists of 46(37%) investors who hold shares in more than 3 industries. NO. OF RESPONDENTS 23 56 46 125 PERCENTAGE 18 45 37 100

CHART NO-19 NUMBER OF INDUSTRIES INVESTED BY THE RESPONDENTS

59

45 40 35 30
PERCENTAGE

45

37

25 20 15 10 5 0
One 2 or 3 More than 3 NUMBER OF INDUSTRIES

18
Percentage

TABLE NO - 20 SELECTION OF THE INDUSTRIES BY THE RESPONDENTS Sample size: 125

60 NO. OF RESPONDENTS 26 31 46 22 125

INDUSTRIES Manufacturing Oil Service Other Total Source: Primary Data INTERPRETATION

PERCENTAGE 21 25 37 17 100

The table no 21 shows that 26 (21%) investors are invested in manufacturing industry. And second category of 31 (25%) investors is invested in oil industry. Third category of 46 (37%) investors is invested in service sector and the remaining 22 (17%) are invested in other sectors like commodities and insurance i.e... So majority of the investors are invested in services sector.

CHART NO- 20 RESPONDENTS SELECTION OF THE INDUSTRIES

61

40 35 30
PERCENTAGE

37

25 20 15 10 5 0

25 21 17
Percentage

fa ct ur in g

Se rv ic e

an u

INDUSTRY

TABLE NO - 21 NUMBER OF COMPANIES INVESTED BY THE RESPONDENTS Sample size: 125

th er

il

62

INVESTED COMPANIES Below 5 6 to 10 More than 10 Total Source: Primary Data INTERPRETATION

NO. OF RESPONDENTS 67 33 25 125

PERCENTAGE 53 27 20 100

The table no 22 shows that the investors who hold shares in up to five companies come under first category. The second category consists of those who hold shares of 6 to 10 companies. Third category consists of investors who hold shares in more than 10 companies. Out of 125 investors 67(53%) come under first category. There are 33(27%) come under second category. Remaining 25(20%) investors who are placed under third category.

CHART NO- 21 NUMBER OF COMPANIES INVESTED BY THE RESPONDENTS

63

60

50 PERCENTAGE

40

30
Percentage

20

10

0 Below 5 6 to 10 More than 10

NO.OF COMPANIES

TABLE NO - 22 ANNUAL VALUE OF TRADING OF THE RESPONDENTS Sample size: 125

64

ANNUAL TRADING VALUE Up to 25,000 25,001 to 50,000 Above 50,001 Total Source: Primary Data INTERPRETATION

NO. OF RESPONDENTS 69 36 20 125

PERCENTAGE 55 29 16 100

The table no 23 shows that out of 125 sample equity investors, 69(55%) investors are with habit of investing in shares which ranges up to the value of Rs.25, 000. 36(29%) investors whose annual value of trading in shares which ranges between Rs.25, 001 Rs.50000. Remaining 20 (16%) of investors whose annual value of trading which is above Rs.50, 000. It could be seen from the table that most of the investors whose annual value of investment in shares ranges up to Rs.25, 000.

CHART NO-22 ANNUAL VALUE OF TRADING OF THE RESPONDENTS

65

60

55

50

40
PERCENTAGE

30

29
Percentage

20

16

10

0
Up to 25000 25001 to 50000 Above 50000

ANNUAL TRADING VALUE

TABLE NO - 23 RATE OF RETURN EXPECTED BY THE RESPONDENTS

66 Sample Size: 125 RATE OF RETURN Up to 15% 16 to 20% 20%-30% Above 30% Total Source: Primary Data INTERPRETATION The table no 24 shows that out of 125 investors, 17(14%) investors who expect a rate of return on investment of up to 15 %. There are 44(35%) investors expecting a rate of return, which ranges between 16% and 20%. Further, 64(51%) investors are expecting a rate of return which ranges between 20%30%. There are no investors in the category of expecting the rate of return above 30%. It could be seen from the table the most of the investors are expecting a higher amount of return for their investment, which ranges between 20%-30%. NO. OF RESPONDENTS 17 44 64 0 125 PERCENTAGE 14 35 51 0 100

CHART NO-23 RATE OF RETURN EXPECTED BY THE RESPONDENTS

67

Up to 15%

14%

16 to 20% Above 20%

51% 35%

TABLE NO - 24 FORMS OF DIVIDEND PREFERRED BY THE RESPONDENTS

68 Sample size: 125 FORMS OF DIVIDEND Cash dividend Bonus shares Both Total Source: Primary Data INTERPRETATION The table no 25 shows that out of 125 investors, 44(35%) investors come under first category, 28(22%) investors come under second category. 53(43%) investors placed under third category. It is observed from the table that most of the investors prefer cash dividend as well as bonus shares from their equity investment. NO. OF RESPONDENTS 44 28 53 125 PERCENTAGE 35 22 43 100

CHART NO-24 FORMS OF DIVIDEND PREFERRED BY THE RESPONDENTS

69

50 45 40 35
PERCENTAGE

43

35

30 25 20 15 10 5 0 Cash dividend Bonus shares Both

DIVIDEND PREFERRED Percentage

22

TABLE NO - 25 LOSS INCURRED BY THE RESPONDENTS

70 Sample size: 125 LOSS Yes No Total Source: Primary Data INTERPRETATION The table no 26 shows that the investors classified on the basis of loss incurred in the past years. They have been classified into two categories. The investors in the first category have incurred loss in the past period. The investors who are in the second category have not met any loss in the past periods. Out of the total investors 80(64%) investors have incurred loss in the past years. In the second category 45(36%) investors have not met any loss in the past year. It is very clear that most of the investors have incurred loss in the past periods. NO. OF RESPONDENTS 80 45 125 PERCENTAGE 64 36 100

CHART NO -25 LOSS INCURRED BY THE RESPONDENTS

71

36%
Yes No

64%

TABLE NO - 26 RESPONDENTS REASON FOR LOSS

72 Sample size: 125 REASON High amount of speculation Fall in the price Both Total Source: Primary Data INTERPRETATION The table no 27 shows that the classification of investors based one type of reasons for loss. The investors who are affected by high amount of speculation are grouped under first category25 (20%). The investors who affected by fall in prices are grouped under second category69 (55%) and the investors who was affected by both reasons come under third category31 (25%). Most of the investors lost their money because of fall in the price of shares. 69 31 80 55 25 100 NO. OF RESPONDENTS 25 PERCENTAGE 20

CHART NO- 26 RESPONDENTS REASON FOR LOSS

73

60

55

50

PERCENTAGE

40

30 20

Percentage

25

20

10

High amount of speculation

Fall in the price

Both

REASON

TABLE NO - 27 FACTORS WHILE PURCHASING OF SHARES BY THE RESPONDENTS Sample size: 125

74

FACTORS Return on investment Nature of industry Expected earnings Dividend policy Management Total Source: Primary Data INTERPRETATION

NO. OF RESPONDENTS 34 31 25 20 15 125

PERCENTAGE 27 25 20 16 12 100

From the table no 28 an attempt has been made to find out the factors normally considered by the investors while making an investment in shares. Out of the total 125 investors 34(27%) investors consider the first factor while making an investment in shares. 31(25%) investors consider the second factor, 25(20%) consider the third factor, 20(16%) investors consider the fourth factor and 15(20%) consider the last factor while making investments.

CHART NO-27 FACTORS WHILE PURCHASING OF SHARES BY THE RESPONDENTS

75

30 25 20 15 10 5 0

27 25 20 16 12
Percentage

PERCENTAGE

nt

ry

pol i cy

inve

f in

Div i de nd

de

ure o

Nat

urn

Exp

Ret

TABLE NO - 28 SATISFACTION WITH SEBI BY THE RESPONDENTS Sample size: 125

ect e

on

FACTORS

Ma na

gem ent

stm e

arn ing

dus t

76

SATISFACTION WITH SEBI Highly satisfied Satisfied Not satisfied Total Source: Primary Data INTERPRETATION

NO. OF RESPONDENTS 34 75 16 125

PERCENTAGE 27 60 13 100

The table no 29 shows that out of 125 investors, 34(27%) investors are highly satisfied with the functioning of SEBI. 75 (60%) investors are satisfied with SEBIs activities. 16(13%) investors are not satisfied with the functioning of SEBI. It could be seen from the table that most of the investors are satisfied with the functioning of SEBI.

CHART NO - 28 SATISFACTION WITH SEBI BY THE RESPONDENTS

77

70 60

60

50
PERCENTAGE

40
Percentage

30

27

20 13 10

0 Highly satisfied Satisfied Not satisfied

SATISFACTION LEVEL

TABLE NO - 29 REASON FOR CHOOSING EQUITY SHARE BY THE RESPONDENTS

78 Sample size: 125 REASON FOR CHOOSING EQUITY SHARE Tax benefit Eye on the future growth Speculation Dividend Safety Liquidity Total Source: Primary Data INTERPRETATION The table no 30 shows that out of 125 investors 36 (29%) are choosing equity for the purpose of tax benefit. 45 (36%) of investors are going for equities for the purpose of future growth, 23 (18%) of investors are choosing the equities for the purpose of speculation, 21 (17%) of investors are choosing equity for the purpose of getting better dividend. NO. OF RESPONDENTS 36 45 23 21 0 0 125 PERCENTAGE 29 36 18 17 0 0 100

CHART NO - 29 REASON FOR CHOOSING EQUITY SHARE BY THE RESPONDENTS

79

40 35 30
PERCENTAGE

36 29

25 20 15 10 5
wt h

18

17

Percentage

0
t efi be n fut ur e Ta x

0
ti o n fet y gro en d ec ul a Di vi d Sa Liq ui d

0
it y

Ey eo

nt

he

Sp

REASON

TABLE NO - 30 RISK TOLERANCE BY THE RESPONDENTS Sample size: 125

80

RISK High risk Moderate Low risk Total Source: Primary Data INTERPRETATION

NO. OF RESPONDENTS 67 39 19 125

PERCENTAGE 54 31 15 100

The table no 31 shows that out of 125 investors, 67 (54%) investors are accepting high risk. 39 (31%) investors are moderate risk takers. 19 (15%) investors are low risk takers. so the table clearly shows that most of the investors are ready to take risk in their investment.

CHART NO - 30 RISK TOLERANCE BY THE RESPONDENTS

81

60 50 40

54

PERCENTAGE

31

30 20 10 0
15

Percentage

High risk

Moderate

Low risk

RISK TOLERANCE

TABLE NO - 31 REINVESTMENT OF PROFIT BY THE RESPONDENTS Sample size: 125

82

PROFIT REINVESTMENT Equity shares Mutual funds Bank deposits Jewels Real estate Total Source: Primary Data INTERPRETATION

NO. OF RESPONDENTS 35 31 25 15 19 125

PERCENTAGE 28 25 20 12 15 100

The table no 32 shows that reinvestment of the profit amount which was earned by the investor through their shares. The first category of investors are invested their profit again in equities i.e. 35(28%). Second category of investors is invested in mutual funds i.e.31 (25%). Third categories of investors are investing their amount in bank deposits i.e.25 (20%). Fourth category investors are investing their amount in jewels i.e.15 (12%). Final category of investors is reinvesting their amount in real estate i.e.19 (15%).

CHART NO - 31 REINVESTMENT OF PROFIT BY THE RESPONDENTS

83

15% 12%

28%

Equity shares Mutual funds Bank deposits Jewels

20%

25%

Real estate

TABLE NO - 32 SYSTEMATIC INVESTMENT FOLLOWED BY THE RESPONDENTS

84

Sample size: 125 SYSTEMATIC INVESTMENT PLAN Yes No Total Source: Primary data INTERPRETATION The table no 33 shows that there are two categories of investors; one is the investor who follow the systematic investment plan (SIP). Another category is the person who was not following the SIP. Under first category 68 (54%) of investors are followed SIP, 57 (46%) of investors are coming under the second category. NO. OF RESPONDENTS 68 57 125 PERCENTAGE 54 46 100

CHART NO - 32 SYSTEMATIC INVESTMENT FOLLOWED BY THE RESPONDENTS

85

Percentage 54%

No. of respondents 46%

TABLE NO 32(a) TYPE OF PLAN FOLLOWED BY THE RESPONDENTS

86

Sample size: 125 TYPE OF PLAN Monthly Quarterly Half yearly Yearly Total Source: Primary Data INTERPRETATION The table no 34 shows that, those 68 investors who are having the SIP, 21(30%) investors are following monthly SIP, 16 (24) investors are following quarterly and also half yearly respectively. Balance of the investors 15 (22%) are following the yearly SIP. NO. OF RESPONDENTS 21 16 16 15 68 PERCENTAGE 30 24 24 22 100

CHART NO-32(a) TYPE OF PLAN FOLLOWED BY THE RESPONDENTS

87

35 30 25 PERCENTAGE 20
Percentage

30 24 24 22

15 10 5 0
Monthly Quarterly Half yearly Yearly

TYPE OF PLAN

CHI-SQUARE TABLE TABLE NO 33 Relationship between Education and Reason for choosing equity share

88

REASON FOR CHOOSING EQUITY SHARE TAXBENEFIT EDUCATION EYE ON FUTURE SPECULATION DIVIDEND SAFETY LIQUIDITY TOTAL

O.F
UPTO HSC

E.F 7.2

O. F 9

E.F 9

O.F 5

E.F 4.6

O. F 4

E.F 4.2

O. F 0

E.F 0

O.F 0

E.F 0 25

UG

20

20.16

25

25.2

13

12.88

12

11.76

70

PG

8.64

11

10.8

5.52

5.04

30

TOTAL

36

36

45

45

23

21

21

125

Null Hypothesis: There is no significant relationship in the level of education and reason for choosing equity share. Alternative Hypothesis: There is a significant relationship in the level of education and reason for choosing equity share. Degrees of freedom = (r-1) (c-1) = (3 -1) (6 -1) = 10 Chi-square value = 0.12614 Tabulated value = 18.307 Result = It is not significant

89 INTERPRETATION Since the calculated value is less than the tabulated value, we can accept the null hypothesis and say that reason for choosing equity shares by the respondents are independent on the education of the respondents.

TABLE NO 34 Relationship between Monthly income and Risk tolerance

90

RISK TOLERANCE MONTHLY INCOME (Rs)

TOTAL
HIGH MODERATE LOW

Up to Rs.10000
10001 to 20000 Above 20000

22

21.98

13

12.79

6.23

41

29

29.48

18

17.16

8.36

55

16

15.54

9.05

4.51

21

TOTAL

67

67

39

39

19

19

125

Null Hypothesis:

91 There is no significant relationship in the level of education and reason for choosing equity share. Alternative Hypothesis: There is a significant relationship in the level of education and reason for choosing equity share. Degrees of freedom = (r-1) (c-1) = (3 -1) (3 -1) =4 Chi-square value = 0.29076 Tabulated value = 9.488 Result = It is not significant INTERPRETATION Since the calculated value is higher than the tabulated value, we can reject the null hypothesis and say that the risk tolerance of the respondents is independent on the monthly income of the respondents.

92

TABLE NO 35 Relationship between Year of investment experience and Loss incurred

YEAR OF INVESTMENT EXPERIENCE Up to 5 years

6 10 years

LOSS INCURRED YES NO

TOTAL

42 32

41.6 31.36

23 17

23.4 17.64

65 49

Above 10 years

7.04

4.96

11

TOTAL

80

80

45

45

125

93

Null Hypothesis: There is no significant relationship in the level of investment and the loss incurred. Alternative Hypothesis: There is a significant relationship in the level of investment experience and the loss incurred. Degrees of freedom = (r-1) (c-1) = (3 -1) (2 -1) =2 Chi-square value = 0.47378 Tabulated value = 5.991 Result = It is not significant experience

INTERPRETATION

94 Since the calculated value is higher than the tabulated value, we can reject the null hypothesis and say that the loss incurred by the respondents is independent on the investment experience of the respondents.

CHAPTER 4 FINDINGS, SUGGESTIONS AND CONCLUSION

95

4.1 FINDINGS
Out of 125 investors, majority (62%) of them are investors (investment) in shares. Majority (44%) of the investors invest funds with an aim to get a long-term capital gain. It is found that out 125 investors, majority (39%) prefer primary and secondary markets for their investment transactions. It is found that majority (38%) of the investors; main source of investment is savings. Out of 125 investors, majority (49%) of them have invested only a least amount (up to 5%) of their wealth in shares. Majority (45%) of the investors are holding the shares of between 2 and 3 industries. Out of 125 investors (37%) of investors are invest their money in services industries It is found that majority (53%) of the investors are holding shares in up to five companies. Majority (55%) of the investors are with habit of investing shares which may up to Rs.25, 000. It is found that majority (51%) of the investors expect more than 20%-40% of return from their equity investment. Out of 125 investors, majority (43%) of them are preferred to cash dividend as well as bonus shares. Majority (64%) investors have incurred loss because of fall in price of shares. Out of 125 investors, majority (60%) of them are satisfied with the functioning of SEBI.

96 Out of 125 investors (27%) are considered the ROI is the main factor to invest equity. Out of 125 investors (54%) are ready to take high amount of risk in equities. Out of 125 investors (54%) does having the habit of invest their money through the Systematic Investment Plan (SIP) and most of them prefer monthly based investment plan CHI-SQUARE BASED FINDINGS Reason for choosing equity shares is independent on the Education of the respondents Risk tolerance is independent on the Monthly income of the respondents. Loss incurred by the respondents is independent on the year of investment experience of the respondents.

4.2 SUGGESTIONS

97 The following suggestions are proposed to the investors, company, brokers, forum and SEBI. It is very specialized job and so the relatively small investors who wish to invest a little money on equities should try through institutional investment. Dont invest more money in equity shares because there is no guaranteed return from that investment. Investment in shares should be diversified. The investors must be aware of the things happening in the share market and keep in touch with the market daily. The investors should purchase shares, which have regular trading in the stock market. Before investing consult the broker and evaluate their idea for making a wide investment.

4.3 CONCLUSION

98 No investor wants to loose money. Capital gains and dividends are the important ingredients that investors regard as return on investment. Any investor with ample reliable information is likely to be successful in the capital market. To avoid wrong decisions one may need expect and professional guidance. The real world of investing is so lively and ever changing and is attracting the investors, the speculator and the gambler. It is also clear that equity investment is not for all and sundry. Individual behavior can influence stock markets behavior and stock markets behavior can influence the course of action of the economy. So the players and regulators should endeavor to protect the interest of individual investors and thus create confidence in their mind. The development and the smooth functioning of the capital market in the long are not possible without protecting the interest of investors.

APPENDICES

99

A Study on Equity Investors Attitude

PERSONAL DETAILS:
1) Name of the Respondent: _______________________________

2) Age: a) Below 20 yrs b) 20-30 yrs c) 30-40 yrs d) 40-50 yrs e) Above 50 yrs 3) Sex: b) Male b) Female

4) Educational qualification: a) Pre-Degree 5) Marital status: a) Married b) Single 6) Occupation: a) Employed 7) Annual Income a) d) Below 01 Laks b)01 Lak to 05 Laks c)03 Lak to 06 Laks Abouve 06 Laks b) Professional c) Business b) UG c) PG

8) Your experience in Stock Market

100

a) Below 1 year b) 02 to 03 years c) o3 to 05 years d) if any specify ___________ 9) What is the frequency of your trading Activity? a) Day b) weekly c) Monthly d) Yearly

10) How many DP account you have? a) One b) One & Above 11) Indicate the sources of awareness about the DP a) Advertisement b) Friends & Relatives c) Financial Consultant d) Media

12) Document in account opening process is a) d) Very difficult b) Difficult Easy c) Neither easy nor difficult

13) How long does it take to transfer the share Dmofe A/c? a) Less than 3 days b) Less than a week c) One to two weeks d) More than a week

101

14) The clarity of the statement of Holding & Transaction movement is issued by a) c) Confusion b) Very Confusion d) clear

Neither clear nor confusion

15) At what interval do you receive the Holding & transaction statement? a) d) 01 to 03 months b) 03 to 06 months c) 06 to 09 months More than a year.

102

BIBLIOGRAPHY

BOOKS M.Y. Khan & P.K. Jain, Financial Management, 4 th Edition 2004, Tata McGraw Hill publishing Company Limited. M.Y.Khan & P.K.Jain, Management Accounting, 3 rd edition 2000, Tata McGraw Hill Publishing Company Limited. Dr. S.N.Maheswari, Principles of Management Accounting, 10 th Edition 1995, Sultan Chand & Company Limited. I.M.Pandey, Financial Management, 9 th Edition 2004, Vikas

Publishing House Pvt. Limited. M.A.Sahaf, Management Accounting, Vikas Publishing House Pvt. Limited

WEBSITES http://www.gurukris.com http://www.yahoo.com http://www.google.com

REPORT Annual report of the company 2003-2008.