Investment Behavior of Individual Investor" in Karvy Stock Broking LTD, Bijapur.

EXECUTIVE SUMMARY
The Executive Summary briefly describes the background of the study, the need
and importance of the study also included in this chapter is statement of to find out the
“investment behavior of individual investor” in Karvy Stock Broking Ltd, Bijapur.
The purpose here is to know, the extent of benefit of this study to the company.
The methodology used for the survey is stated and the conclusion is made. The benefits
from the research are also given here.
Methodology used by the researcher involves the survey method. The sample
technique used is Random sampling and sample size for the survey is 50. The company
profile and history and finally the tools used for data analysis are given.
The conclusion is made in such a way as to match the objectives and analysis.
Implications are also given which briefs about who benefits from the study. Finally
suggestions are mentioned for further research. Lastly the annexure contains a copy of
questionnaire, bibliography and other tools used for the research.
B L D E A’s A S Patil College of MBA Programme, Bijapur.

Chapter 1
INTRODUCTION

INVESTMENT
Investments can be defined as the process of, “sacrificing something now for
prospect of gaining something later” or Investment is the “sacrifice of certain present
value for the uncertain future reward”. An Investment decision is a trade off between risk
and return. All investment choices are made at points of time in accordance with the
personal investment ends and in contemplation of an uncertain future. Since investment
in securities are revocable, investment ends are transient and investment environment is
fluid, the reliable bases for reasoned expectations become more and more vague as one
conceives of the distant future. Investment in securities will, therefore from time, re-
appraise and re-evaluate their various investment commitments in the light of new
information, changed expectations and ends.
Investment is the employment of funds on assets with the aim of earning income
or capital appreciation. Investment has two attributes namely time and risk. Present
consumption is sacrificed to get a return in the future. The sacrifice that has to be born in
certain the return in the future may be uncertain. This attribute of investment indicates the
risk factor. The risk is undertaken with a view to reap some return from the investment.
The problem of surplus gives rise ti the question of where to invest. In the past,
investment avenues were limited to real estate, scheme of the post office and banks. At
present, a wide verity of investment avenues is open to the investors to suit their needs
and nature. Knowledge about the different avenues are open to the investors to chose
investment intelligently. The required level of return and the risk tolerance level decide
the choice of investors. The investment alternatives range from financial securities to
traditional non-security investment. The financial securities may be negotiable or non-
negotiable.
The negotiable securities are financial securities that are transferable. The
negotiable securities may yield variable income or fixed income. Securities like equity
shares are variable income securities. Bonds, debentures, Indra Vikas Patra,
Kisan Vikas Patra, and money market yield a fixed income.

The non-negotiable financial investment as it self suggests is not transferable.
This is also know as non-securitized financial investment. Deposit schemes offered by the
post office, banks, companies, and non-banking financial companies are of this category.
To the economist, investment is the net addition made to the nation’s capital stock
that consists of goods and services that are used in the production process. A net addition
to the capital stock means an increase in the buildings, equipments or investment. These
capital stocks are used to produce other goods and services.
Investing in various types of assets is an increasing activity that attracts people

from all walks of the life irrespective of their occupation, economic status, education and
family background. When a person has more money that he requires for current
consumption, he would be called as a potential customer. The investor who is having
extra cash could invest in securities or in any other assets like gold or real estate or could
simply deposit it I bank account. The companies that have extra income may like to
invest their money in the extension of the existing firm or undertake venture. All of these
activities in a broader sense mean as investment.
There are basically three concepts of investment:
1. Economic investment- That is, an economist’s definition of investment.

2. Investment in a more general or extended sense, which is used by the “common
man”.
3. Financial investment-means an exchange of financial claims-stock and bonds
(which are collectively called securities), real estate etc.
INTERMEDIARIES:

Savings can be invested in a number of investments. However, there is a gap
between the potential investors and firms offering different investment avenues. Hence,
there is a need of the hour to bring together these potential investors and such investment
companies. There are some firms which facilitate bringing together potential investors
and investment companies called intermediaries. Intermediaries are institutional or
individual agencies who assist in the process of transforming savings into investment.
The major intermediaries in the capital market are:

1. Merchant bankers
2. under-writers
3. Registrars
4. Brokers
5. Depositories
6. collecting agents
7. Advertising agencies
8. Agents
9. Stock brokers and Sub-brokers
10. Mutual funds.
Stock exchanges are intricately inter-woven in the fabric of nation economic life.
Of all the modern service institutions, stock exchanges are perhaps the most crucial agent
and facilitators of entrepreneurial progress. After the individual revolution, as the size of
business enterprises grew, it was no longer possible for proprietors or even partnership to
raise large amount of money required for undertaking entrepreneurial ventures, such huge
requirement of capital could only met by the participation of very large number of
investors, there number running into hundreds, thousands and millions, depending on the
size of the business ventures.

It is not always possible to find buyers of an entire business or even a part of
business, just when one wishes to sell it. Similarly, it is not easy for some one with
savings, especially with a small amount of savings, to ready find an appropriate business
opportunity, or a part there of, for investment. This implies that ownership in business has
to be “Broken up” into a large number of small units, such that each unit may be
independently and sold without hampering the business activities as such.
This end is achieved in a modern business through the mechanism of shares. A

share represents the smallest recognized fraction of ownership, represented in the form of
a certificate, know as the share certificate. The banking up of the total ownership of a
business into small units, each unit represented by a shares certificate, enables them to be
easily bought and sold. The institution where this buying and selling of shares takes place
is called the stock exchange.
By enabling the convertibility of ownership in product market into financial assets

namely shares, stock exchange bring together buyers and sellers of fractional ownerships
of companies. These activities relating to stock exchanges and its variations are
appropriately known as stock market or security market.
INVESTMENT CHARACTERISTICS:
All investments are characterized by certain features are:
1. Return: All investors are characterized by the expectation of a return. In fact,

investments are made with the primary objectives of deriving a return. The return may be
received in the form of yield plus capital appreciation. The difference between the sale
price and the purchase price is capital appreciation. The dividend or interest received
from the investment is the yield. Different types of investment promise different rates of
return. The return from an investment depends upon the nature of the investment, the
maturity period and a host of other factors.

2. Risk: Risk is inherent in any investment. This risk may relate to loss of capital, delay
in repayment of capital, nonpayment of interest, or variability of returns. While some
investments like government securities and bank deposits are almost risk less, others are
more risky.
The risk of an investment depends on the following factors:
1. The longer the maturity period, the larger is the risk.

2. The lower the credit worthiness of the borrower, the higher is the risk.
3. The risk varies with the nature of investment. Investments in ownership securities
like equity shares carry higher risk compared to investments in debt instruments
like debentures and bonds.
3. Safety: The safety of an investment implies the certainty of return of capital without
loss of money or time. Safety is another feature which an investor desires for his
investments. Every investor expects to get back his capital on maturity without loss and
without delay.
4. Liquidity: An investment which is easily saleable or marketable without loss of

money and without loss of time is said to possess liquidity. Some investments like
company depends, bank deposits, P.O. Deposits, NSC, NSS etc, are not marketable. Some
investment instruments like preference shares and debentures are marketable, but there
are no buyers in many cases and hence their liquidity is negligible. Equity shares of
companies listed on stock exchanges are easily marketable through the stock exchanges.

INVESTMENT OBJECTIVES:
The main investment objectives are to increase the rate of return and reducing the risk.
Other objectives like safety, liquidity, and hedge against inflation can be considered as
subsidiary objectives.
A) Return:
Investors always expect a good rate of return form their investments. Rate of
return could be defined as the total income the investor receives during the holding period
stated as a percentage of purchasing price at the beginning of the holding period.
B) Risk:
Risk of holding securities is related with the probability of actual return becoming
the expected return. The word risk is synonymous with the phrase variability of return.
An investment whose rate of return varies widely from period to period is more risky
than whose return that does not change much. Every investor likes to reduce risk of his
investment by proper combination of different securities.
There are mainly two types of risks they are:
1. Unsystematic risk
2. Systematic risk
Unsystematic risk arises due to short supply of raw materials, disputes in

management etc. It is uncontrollable that is why it is known as Internal risk.
Systematic risks arise due to political, economic, social factors it is also known as
controllable risks that is why it is External risk.

INVESTOR V/S SPECULATOR
Investor plans for longer time horizon. Holding period may be from one year to
few years whereas speculator plans for very short period. Holding period varies from few
days to months.
1. Investor is ready to take moderate risk while speculator is willing to undertake

high risk.
2. Investor likes to have moderate rate of return associated with limited risk but
speculator likes to have return for assuming high risk.
3. Investor decision considers fundamental factors and evaluates the performance of
the company regularly whereas speculator considers the inside information, here
say market condition.
4. Investor uses the fund of his own and avoids the borrowed funds while speculator
uses the borrowed funds to supplement his personal funds.
GAMBLING AND INVESTMENT
A gamble is usually a very short term investment in a game or chance. Gambling

is different from speculation and investment. The time horizon involved in gambling is
shorter then speculation and investment. The result are determined by the roll of dice or
the turn of card. Secondly, people gamble as a way to entertain themselves, earning
income would be the secondary. Thirdly, the risk in gambling is different from the risk of
the investment. In investment there is an analysis of risk and return. Positive return are
expected by the investors. The financial analysis does not reduce the risk proportion
involved in gambling.

EARLY HISTORY AND DEVELOPMENTS OF THE INDIAN STOCK
MARKETS
The earliest records of security dealings in India were meager and obscure.
Towards the close of the 18th century, the East India company was the dominant
institution and business in its loan securities used to be transacted. The beginning of 19 th
century saw a perceptible increase in the nature of business in corporate stocks and
shares. However the main importance to the stock business came in 1856 when the
companies act providing for limited liability of members was enacted. This was followed
by a period of boom and crisis and formation of organized stock exchanges.
The American civil war (1860-61) resulted in the share mania of 1861-65 during
which the number of brokers increased to about 200-250 and they became possessed of
great influence, authority and wealth. Like the south sea bubble and tulip mania of the
18th century in Europe, the share mania of 1861-65 caused undesired desolation at the end
of the American civil war. Very few companies were solvent in Mumbai. The depression
was long and severe, but the share mania had certain lasting effects. The brokers
organized an informal association in 1875 which was later on formally established in
Mumbai on 3rd December 1887 as society to be called the “Native shares and stock
brokers association”. Expectation of liquid capital and the establishment of a regular
market in securities helped to take Mumbai what it is today “the chief center of the
money and capital markets” and “the financial capital of India”.
The cotton textile industry which established the primacy of Mumbai also
contributed to the development of the Ahmedabad share and stock brokers association in
1894. The stock exchanges at Mumbai and Ahmedabad were well set up property
organized association of the 20th century, but the Calcutta stock exchange was not so
constituted despite the fact that stock business in an organized way had been existing
since 1830.

INTER-WAR PERIOD:
On the eve of the worldwar-1, the stock market in India considered of 3 stock
exchanges in Mumbai, Calcutta and Ahmedabad as hostilities developed, the import of
manufacturers into India stopped almost completely as Europe ceased to produce any
manufactured articles except those required for the war. As a result Indian manufacturers
were able to penetrate the home market. It was a period of phenomenal prosperity. The
stock exchange soon became the centre of attraction for all. Rival stock exchange in
Mumbai and Ahmedabad in 1917 and 1920 respectively where formed but could not
survive long as they could not obtain official reorganization under the provisions of the
Mumbai securities contracts control act 1925. futile attempts to establish stock exchange
in madras and northern India were also made.
The boom petered out in 1921 and Indian stock market went through a lean
period. The improvements in business conditions and in stock market activity in 1935
were marked by growing public interest in stocks, shares and securities. There was a
rapid increase in textile mils and many new plantations companies were floated in south
India. To cater to this expanding trade in plantation and mill shares, a stock was
organized in madras on 4th September 1937 under the name and style of the ‘Madras
stock exchange association (Pvt) Ltd’.
WORLD WAR II AND AFTER:
A period of unprecedented prosperity to the stock exchanges ushered in world war

II. Many new associations were constituted. In Ahmedabad, as many as four new stock
exchanges were set up one of another. Similarity in Lahore, which witnessed a grate
expansion of monitory income during the war, four new exchanges were established.
Calcutta and Delhi had to stock exchanges besides the existing ones. In 1940, to stock
exchanges, namely the U.P. stock exchange Ltd. And the nagpur stock exchange Ltd,
were establish in Kanpur and nagpur, respectively. In 1944, the Hyderabad stock Ltd.
Was incorporated in Hyderabad recognized under the Hyderabad securities contracts
control act. A small stock exchange was also set up in Bangalore city.

The mushroom stock exchanges during the war time suffered a total depression.
The exchanges in Lahore closed down. Most of the others stock exchanges withered
away when they applied to the central government for reorganization under the securities
contracts (regulation) act, 1956.only the old established stock exchanges in Mumbai,
calutta, Madras, Ahmedabad , Delhi, Hyderabad and Indore were recognized under this
act. The Bangalore stock exchange was registered subsequently in 1957 and recognized
1963.
Organization of Indian stock exchanges

The recognized stock exchanges in India vary from voluntary no-profit making
organizations (as in Mumbai, Ahmedabad and Indore) to joint stock companies Ltd by
shares (as in Calcutta, Delhi and Bangalore) and companies Ltd by guarantee (as in
Madras and Hyderabad) since the rules or articles of association defining the constitution
of the organized stock exchanges are approved by the central government. The Mumbai
stock exchange was the first to get permanent reorganization followed by Calutta, Delhi,
Madras, Ahmedabad, Hyderabad, Indore and Bangalore. At present there are 21 stock
exchanges in India (Excluding NSE and OTCEI) the largest being the Bombay stock
exchanges (BSE). The prominent ones are Mumbai, Calcutta, Madras, Delhi and
Ahmedabad. The overall development and regulation of the securities market has been
interested to the Securities Exchange Board of India (SEBI) by an act of parliament in
1992
CAPITAL MARKET:
Capital is required to bring a business into existence, to keep it alive and see it
growing. Achieving the goal of business requires the performance of such business
function namely production, distribution, marketing, research and development all of
which involve investment of capital. Further, companies require capital not only for
meeting there long term requirements of funds for new projects, modernization,
expansion and diversification Programmes but also for covering operational expenses.

Categories of Capital:
1. Long-term capital/ fixed capital: it represents the amount of capital invested in fixed
assets. It is a long term investment.
2. Short-term capital/ Working capital: it represent the amount of capital invested in

current assets. Current assets are those assets which can be converted in cash within a
year or accounting period. Working capital is required for meeting the operating cost of
the concern.
3. Export Capital: The amount of capital required for making payment in international
trade is called export capital.
The methods of payment in international trade are:

 Cash with order
 Open account
 Bills of exchange
 Banker’s documentary credits.
4. Venture capital: venture capital is the capital invested in highly risky venture or
projects.
Meaning and Definition of Capital Market:

Generally speaking, capital market is the place where in funds are raised by
companies for meeting their long term requirements. Capital market is a market for long
term capital.
Capital market may be defined as the mechanism which co-operative the demand
and supply forces for long term capital. The participant on demand and supply side of this
market are financial institution, mutual funds, agents, brokers, dealers, borrowers and
lenders.

Components of capital Market:
Broadly speaking, capital market is composed of two segments:
 The new issue market or primary market

 The secondary market
1. The new issue market or primary market: in the primary market the existing companies
or new companies offer shares/debentures to the public for subscription. The primary
market also includes the offer of securities to the existing share holders of the companies
on right and bonus basis. In the primary market the companies acquire long term funds
for meeting their requirements like project financing, expansion; modernization etc.
primary market creates financial claims. In this market the public can only buy the shares.
Parties involved in the primary market are the lenders and the barrowers. Merchant
bankers, registrars, issue companies, under-writers, bankers to the issue, public financial
institutions, mutual funds etc. are the major players in new issue markets.
The primary market is made up of two components

 80% of the IPO is offered to the public
 The remaining 20% is offered to firms which already traded to raise additional
capital.
2. The secondary Market: In the secondary market or stock market old issues are bought
and sold. In this market, the public can buy sell securities. This market does not create
financial claims. In this market the funds does not flow between barrowers and lenders
but fund flow between lenders and others/ buyers of security. The brokers, the investors,
mutual funds and the financial institution are the important constituents of the secondary
market.

Players in the capital market:
The players in the capital markets are divided in three categories:
1. Companies issuing securities: as per the SEBI guidelines, companies intending to

issue securities divided three categories.
 New companies
 Existing unlisted companies
 Existing listed companies
a) If a new company satisfies all the following three conditions.
 It has not completed 12 months of commercial operation.
 Its audited operative results are not available.
 It is set up by entrepreneurs with or without track record.
b) Existing closely held or private companies are called existing unlisted companies .
c) A company is said to be an existing listed company if its shares are listed in the any
one of the recognized stock exchanges.
2. Structure of capital market in India: The structure of Indian capital market has
under gone a remarkable transformation over the last four and a half decades and now
companies an impressive network of financial institutions and new financial instruments.
The secondary market has become more sophisticated in response to the varied needs of
the investors. Provision of long term credit is entrusted with specialization financial
institutions. Of these IDBI, IFCI, UTI,LIC, GIC etc. Constitute the largest segment.
The various constitutes of capitals market are:
 Equity Market
 Debt Market
 Government Securities Market
 Mutual fund schemes

3. Membership: The regulations governing the admission of members and the
recognized stock exchanges are uniform in terms of the provisions of securities contracts
(regulations) Rules 1956.
These statutory rules provide that no person shall be eligible to be elected as a member if
he is
 Less than 21 years of age.
 Not an Indian citizen.
 Adjudged bankrupt.
 Convicted offence involving fraud or dishonesty.
 Engaged as principal or employee in any business other than that of securities.
 Member of any other association in India where dealing in securities are carried
on.
 Director or employees of company whose principal business is that of dealing in
securities.
Members of the exchange entitled to work either as individual entitles, or in partnership,
or as representative members transacting business on the floor of the market not in their
own name but in the name of the appointing members who assume the market
responsibility for the business so transacted.
Members are entitled to appoint attorneys to supervise their stock exchange business.
Such persons satisfy in all respect the conditions of eligibility prescribed for membership
of the exchange and their appointment must be approved by the governing body.

The Role of SEBI in Security Market:
The security and exchange board of India, is the national regulatory body for the
security market, set up under the security and exchange board of India act, 1992, to
“protect the interest of investors in securities and promote the development of, and to
regulate, the securities market and for matters connected there with or incidental to”.
SEBI has its head office in Bombay and it is in process of setting up regional
offices in the metropolitan cities of Calcutta, Madras and Delhi. The board of SEBI
companies a chairman, two members from the central government representing the
ministries of finance and law, one member from the RBI, and two other members
appointed by central government.
As per the SEBI act 1992, the powers and functions of the board the regulations of
the stock exchanges and other securities market, registration and regulation of the
working of stock brokers, sub-brokers, bankers to an issue (a public offer), trusties of
trust deeds . the registers to an issue, under writers and such other intermediaries whom
may be associated with stock market in any way, promotion and regulation of self
regulatory organization, prohibiting fraudulent and unfair trade practices and insider
trading in securities markets, regulating substantial acquisition of shares and take over of
companies, under writing inspection, conducting inquires and audits of stock exchanges,
performing such function and exercising such powers as contained in the provisions of
the capital issues act 1947 and the securities contracts (regulations) act, 1956, laving
various fees and other charges, conducting necessary research for above purpose and
performing such other functions as may be prescribed from time to time.

INTRODUCTION
KARVY, is a premier integrated financial services provider, and ranked among the
top five in the country in all its business segments, services over 16 million individual
investors in various capacities, and provides investor services to over 300 corporate,
comprising the who is who of Corporate India. KARVY covers the entire spectrum of
financial services such as Stock broking, Depository Participants, Distribution of
financial products - mutual funds, bonds, fixed deposit, equities, Insurance Broking,
Commodities Broking, Personal Finance Advisory Services, Merchant Banking &
Corporate Finance, placement of equity, IPOs, among others. Karvy has a professional
management team and ranks among the best in technology, operations and research of
various industrial segments.
EARLY DAYS OF KARVY
The birth of Karvy was on a 1981. It began with the vision and enterprise of a
small group of practicing Chartered Accountants who founded the flagship company …
Karvy Consultants Limited. They started with consulting and financial accounting
automation, and carved inroads into the field of registry and share accounting by 1985.
Since then, theyhave utilized their experience and superlative expertise to go from
strength to strength…to better their services, to provide new ones, to innovate, diversify
and in the process, evolved Karvy as one of India’s premier integrated financial service
enterprise.
Thus over the last 20 years Karvy has traveled the success route, towards building
a reputation as an integrated financial services provider, offering a wide spectrum of
services. And they have made this journey by taking the route of quality service, path
breaking innovations in service, versatility in service and finally totality in service.

Their highly qualified manpower, cutting-edge technology, comprehensive
infrastructure and total customer-focus has secured for us the position of an emerging
financial services giant enjoying the confidence and support of an enviable clientele
across diverse fields in the financial world.
Their values and vision of attaining total competence in their servicing has served
as the building block for creating a great financial enterprise, which stands solid on their
fortresses of financial strength - their various companies.
With the experience of years of holistic financial servicing behind us and years of
complete expertise in the industry to look forward to, they have now emerged as a
premier integrated financial services provider.
And today, they can look with pride at the fruits of their mastery and experience –
comprehensive financial services that are competently segregated to service and manage
a diverse range of customer requirements.

MILE STONES OF KARVY

KARVY Clients - ITS Focus
Clients are the reason for their being. Personalized service, professional care; pro-
activeness are the values that help us nurture enduring relationships with their clients.
Respect for the individual Each and every individual is an essential building block of
their organization.
They are the kiln that hones individuals to perfection. Be they their employees,
shareholders or investors. They do so by upholding their dignity & pride, inculcating trust
and achieving a sensitive balance of their professional and personal lives.
TEAMWORK
“None of us is more important than all of us.”
Each team member is the face of Karvy. Together they offer diverse services with
speed, accuracy and quality to deliver only one product: excellence. Transparency, co-
operation, invaluable an individual contribution for a collective goal, and respecting
individual uniqueness within a corporate whole, is how they deliver again and again.
RESPONSIBLE CITIZENSHIP
A social balance sheet is as rewarding as a business one. As a responsible
corporate citizen, their duty is to foster a better environment in the society where they
live and work. Abiding by its norms, and behaving responsibly towards the environment,
are some of their growing initiatives towards realizing it.
INTEGRITY
Everything else is secondary. Professional and personal ethics are their bedrock. They
take pride in an environment that enctheirages honesty and the opportunity to learn from
failures than camouflage them. They insist on consistency between works and actions.

QUALITY POLICY
To achieve and retain leadership, Karvy shall aim for complete customer
satisfaction, by combining its human and technological restheirces, to provide superior
quality financial services. In the process, Karvy will strive to exceed Customer's
expectations.
QUALITY OBJECTIVES
As per the Quality Policy, Karvy will:

Build in-house processes that will ensure transparent and harmonious relationships with
its clients and investors to provide high quality of services.
Establish a partner relationship with its investor service agents and vendors that will help
in keeping up its commitments to the customers.
Provide high quality of work life for all its employees and equip them with adequate
knowledge & skills so as to respond to customer's needs.
Continue to uphold the values of honesty & integrity and strive to establish unparalleled
standards in business ethics.
Use state-of-the art information technology in developing new and innovative financial
products and services to meet the changing needs of investors and clients.
Strive to be a reliable stheirce of value-added financial products and services and
constantly guide the individuals and institutions in making a judicious choice of same.
Strive to keep all stake-holders (shareholders, clients, investors, employees, suppliers and
regulatory authorities) proud and satisfied.

KARVY ALLIANCE
Karvy Computershare Private Limited is a 50:50 joint venture of Karvy
Consultants Limited and Computershare Limited, Australia. Computereshare Limited is
world's largest -- and only global -- share registry, and a leading financial market services
provider to the global securities industry.
The joint venture with Computershare, reckoned as the largest registrar in the
world, servicing over 60 million shareholder accounts for over 7,000 corporations across
eleven countries spread across five continents. Computershare manages more than 70
million shareholder accounts for over 13,000 corporations around the world.
Karvy Computershare Private Limited, today, is India's largest Registrar and

Share Transfer Agent servicing over 300 corporate and mutual funds and 16 million
investors.

FINANCIAL SERVICES
AT
KARVY FINAPOLIS

KARVY CONSULTANTS LIMITED
As the flagship company of the Karvy Group, Karvy Consultants Limited has
always remained at the helm of organizational affairs, pioneering business policies, work
ethic and channels of progress.
Having emerged as a leader in the registry business, the first of the businesses that
they ventured into, they have now transferred this business into a joint venture with
Computershare Limited of Australia, the world’s largest registrar. With the advent of
depositories in the Indian capital market and the relationships that they have created in
the registry business, they believe that they were best positioned to venture into this
activity as a Depository Participant. They were one of the early entrants registered as
Depository Participant with NSDL (National Securities Depository Limited), the first
Depository in the country and then with CDSL (Central Depository Services Limited).
Today, they service over 6 lakhs customer accounts in this business spread across over
250 cities/towns in India and are ranked amongst the largest Depository Participants in
the country. With a growing secondary market presence, they have transferred this
business to Karvy Stock Broking Limited (KSBL), their associate and a member of NSE,
BSE and HSE.
IT enabled services:
Their Technology Services division forms the ideal platform to unleash their
technology initiatives and make their presence felt on the Internet. Their past
achievements include many quality websites designed, developed and deployed by us.
They also possess their own web hosting facilities with dedicated bandwidth and a state-
of-the-art server farm (data center) with services functioning on a variety of operating
platforms such as Windows, Solaris, Linux and Unix.

The corporate website of the company, “www.karvy.com”, gives access to in-
depth information on financial matters including Mutual Funds, IPO’s, Fixed Income
Schemes, Insurance, Stock Market and much more. A link called ‘Restheirce Center’,
devoted solely to research conducted by their team of experts on various financial aspects
like ‘Sector Research’, deals exclusively with in-depth analysis of the key sectors of the
Indian economy. Besides, a host of other links like ‘My Portfolio’ which acts as a
personalized and customized financial measure, makes this site extremely informative
about investment options, market trends, news as also about their company and each of
the services offered here.
KARVY STOCK BROKING LIMITED

Karvy Stock Broking Limited, one of the cornerstones of the Karvy edifice, flows
freely towards attaining diverse goals of the customer through varied services. Creating a
plethora of opportunities for the customer by opening up investment vistas backed by
research-based advisory services. Here, growth knows no limits and success recognizes
no boundaries. Helping the customer create waves in his portfolio and empowering the
investor completely is the ultimate goal.
Member - National Stock Exchange (NSE),The Bombay Stock Exchange (BSE), and The
Hyderabad Stock Exchange (HSE).
Stock Broking Services

It is an undisputed fact that the stock market is unpredictable and yet enjoys a
high success rate as a wealth management and wealth accumulation option. The
difference between unpredictability and a safety anchor in the market is provided by in-
depth knowledge of market functioning and changing trends, planning with foresight and
choosing options with care. This is what they provide in their Stock Broking services.
They offer services that are beyond just a medium for buying and selling stocks
and shares. Instead they provide services which are multi dimensional and multi-focused

in their scope. There are several advantages in utilizing their Stock Broking services,
which are the reasons why it is one of the best in the country.
They offer trading on a vast platform ; National Stock Exchange, Bombay Stock
Exchange and Hyderabad Stock Exchange. More importantly, they make trading safe to
the maximum possible extent, by accounting for several risk factors and planning
accordingly. They are assisted in this task by their in-depth research, constant feedback
and sound advisory facilities. Their highly skilled research team, comprising of technical
analysts as well as fundamental specialists, secure result-oriented information on market
trends, market analysis and market predictions.
This crucial information is given as a constant feedback to their customers,

through daily reports delivered thrice daily; The Pre-session Report, where market
scenario for the day is predicted, The Mid-session Report, timed to arrive during lunch
break, where the market forecast for the rest of the day is given and The Post-session
Report, the final report for the day, where the market and the report itself is reviewed. To
add to this repository of information, they publish a monthly magazine “The
Finapolis” which analyzes the latest stock market trends and takes a close look at the
various investment options, and products available in the market, while a weekly report,
called “Karvy Bazaar Baatein”, keeps clients more informed on the immediate trends in
the stock market. In addition, their specific industry reports give comprehensive
information on various industries. Besides this, they also offer special portfolio analysis
packages that provide daily technical advice on scrips for successful portfolio
management and provide customized advisory services to help you make the right
financial moves that are specifically suited to their portfolio.
Stock Broking services are widely networked across India, with the number of
trading terminals providing retail stock broking facilities. Its services have increasingly
offered customer oriented convenience, which they provide to a spectrum of investors,
high-net worth or otherwise, with equal dedication and competence.

But true to their spirit, this success is not their final destination, but just a platform
to launch further enhanced quality services to provide you the latest in convenient,
customer-friendly stock management.
Over the years karvy have ensured that the trust of their customers is their biggest
returns. Factors such as their success in the Electronic custody business has helped build
on their tradition of trust even more. Consequentially their retail client base expanded
very fast.
To empower the investor further they have made serious efforts to ensure that
their research calls are disseminated systematically to all their stock broking clients
through various delivery channels like email, chat, SMS, phone calls etc.
Their foray into commodities broking has been path breaking and they are in the
process of converting existing traders in commodities into the more organized
mainstream of trading in commodity futures, both as a trading and risk hedging
mechanism.
In the future, their focus will be on the emerging businesses and to meet this
objective, they have enhanced their manpower and revitalized their knowledge base with
enhances focus on Futures and Options as well as the commodities business.
Depository Participants
The onset of the technology revolution in financial services Industry saw the
emergence of Karvy as an electronic custodian registered with National Securities
Depository Ltd (NSDL) and Central Securities Depository Ltd (CSDL) in 1998. Karvy
set standards enabling further comfort to the investor by promoting paperless trading
across the country and emerged as the top 3 Depository Participants in the country in
terms of customer serviced.
Offering a wide trading platform with a dual membership at both NSDL and
CDSL, they are a powerful medium for trading and settlement of dematerialized shares.

They have established live DPMs, Internet access to accounts and an easier transaction
process in order to offer more convenience to individual and corporate investors. A team
of professional and the latest technological expertise allocated exclusively to their demat
division including technological enhancements like SPEED-e, make their response time
quick and their delivery impeccable. A wide national network makes their efficiencies
accessible to all.
Distribution of Financial Products

The paradigm shift from pure selling to knowledge based selling drives the
business today. With their wide portfolio offerings, they occupy all segments in the retail
financial services industry.
A 1600 team of highly qualified and dedicated professionals drawn from the best
of academic and professional backgrounds are committed to maintaining high levels of
client service delivery. This has propelled us to a position among the top distributors for
equity and debt issues with an estimated market share of 15% in terms of applications
mobilized, besides being established as the leading procurer in all public issues.
To further tap the immense growth potential in the capital markets they enhanced
the scope of their retail brand, Karvy – the Finapolis , thereby providing planning and
advisory services to the mass affluent. Here they understand the customer needs and
lifestyle in the context of present earnings and provide adequate advisory services that
will necessarily help in creating wealth. Judicious planning that is customized to meet the
future needs of the customer deliver a service that is exemplary. The market-savvy and
the ignorant investors, both find this service very satisfactory. The edge that they have
over competition is their portfolio of offerings and their professional expertise. The
investment planning for each customer is done with an unbiased attitude so that the
service is truly customized.
Their monthly magazine, Finapolis, provides up-dated market information on

market trends, investment options, opinions etc. Thus empowering the investor to base

every financial move on rational thought and prudent analysis and embark on the path to
wealth creation.
Advisory Services
Under their retail brand ‘Karvy – the Finapolis', they deliver advisory services to
a cross-section of customers. The service is backed by a team of dedicated and expert
professionals with varied experience and background in handling investment portfolios.
They are continually engaged in designing the right investment portfolio for each
customer according to individual needs and budget considerations with a comprehensive
support system that focuses on trading customers' portfolios and providing valuable
inputs, monitoring and managing the portfolio through varied technological initiatives.
This is made possible by the expertise they have gained in the business over the years.
Another venture towards being investor-friendly is the circulation of a monthly magazine
called ‘Karvy - the Finapolis'. Covering the latest of market news, trends, investment
schemes and research-based opinions from experts in various financial fields.
Private Client Group

This specialized division was set up to cater to the high net worth individuals and
institutional clients keeping in mind that they require a different kind of financial
planning and management that will augment not just existing finances but their life-style
as well. Here they follow a hard-nosed business approach with the soft touch of dedicated
customer care and personalized attention.
For this purpose they offer a comprehensive and personalized service that
encompasses planning and protection of finances, planning of business needs and
retirement needs and a host of other services, all provided on a one-to-one basis.
Their research reports have been widely appreciated by this segment. The delivery
and support modules have been fine tuned by giving their clients access to online
portfolio information, constant updates on their portfolios as well as value-added advice

on portfolio churning, sector switches etc. The investment recommendation given by their
research team in the cash market has enjoyed a high success rate.
KARVY INVESTORS SERVICE LIMITED

Merchant Banking:
Recognized as a leading merchant banker in the country, they are registered with
SEBI as a Category I merchant banker. This reputation was built by capitalizing on
opportunities in corporate consolidations, mergers and acquisitions and corporate
restructuring, which have earned us the reputation of a merchant banker. Raising
restheirces for corporate or Government Undertaking successfully over the past two
decades have given us the confidence to renew their focus in this sector.
Their quality professional team and their work-oriented dedication have propelled
us to offer value-added corporate financial services and act as a professional navigator for
long term growth of their clients, who include leading corporate, State Governments,
foreign institutional investors, public and private sector companies and banks, in Indian
and global markets.
They have also emerged as a trailblazer in the arena of relationships, both at the
customer and trade levels because of their unshakable integrity, seamless service and
innovative solutions that are tuned to meet varied needs. Their team of committed
industry specialists, having extensive experience in capital markets, further nurtures this
relationship.
Their financial advice and assistance in restructuring, divestitures, acquisitions,

de-mergers, spin-offs, joint ventures, privatization and takeover defense mechanisms
have elevated their relationship with the client to one based on unshakable trust and
confidence.

An Investment Banker is total solutions provider as far as any corporate, desirous
of mobilising capital, is concerned. The services range from investment research to
investor service on the one side and from preparation of offer documents to legal
compliances and post issue monitoring on the other. There exists a long lasting
relationship between the Issuer Company and the Investment Banker. A "Merchant
Banker" could be defined as "An organisation that acts as an intermediary between the
issuers and the ultimate purchasers of securities in the primary security market"
Merchant Banker has been defined under the Securities & Exchange Board of
India (Merchant Bankers) Rules, 1992 as "any person who is engaged in the business of
issue management either by making arrangements regarding selling, buying or
subscribing to securities as manager, consultant, advisor or rendering corporate advisory
service in relation to such issue management".
Merchant Banking, as a commercial activity, took shape in India through the

management of Public Issues of capital and Loan Syndication. It was originated in 1969
with the setting up of the Merchant Banking Division by ANZ Grindlays Bank. The main
service offered at that time to the corporate enterprises by the merchant banks included
the management of public issues and some aspects of financial consultancy. The early
and mid-seventies witnessed a boom in the growth of merchant banking organisations in
the country with various commercial banks, financial institutions, broker's firms entering
into the field of merchant banking.
KARVY AS AN INVESTMENT BANKER
Karvy is well networked with 200 full-fledged branches and 350 Investor Service
Centers with a workforce of over 3500 personnel drawn from various disciplines.
Karvy Investor Services Limited, a SEBI registered Merchant Banker is a 100%

subsidiary of Karvy Consultants Limited and is among the top 10 merchant Bankers in
India today. The parent Company i.e. Karvy Consultants Limited was founded by a group

of professionals in 1982 and today it has evolved as integrated financial services
company of repute, offering various financial services to suit every requirement/need of
their customers. By virtue of its access to millions of Indian Shareholders, in addition to
companies, banks and financial institutions, Karvy has in the process built up a positive
reputation with regulatory authorities and other government agencies. Their emphasis on
the quality of the services, they offer, has been instrumental in helping us to attain the
leadership in the financial services sector.
They have a track record of handling 70 public/rights issues as Merchant Bankers.

During the last two years they have handled the share buyback issues of TTK LIG
Limited, Sirpur Paper Mills Limited, Bhagyanagar Metals Limited, A V Thomas Group-
Nelliampathy Tea and Produce Company Limited, Chordia Food Products Limited,
Heritage Foods (India) Limited, Titanor Components Ltd, Punjab Communications
Limited, etc. to name a few.
They have also handled/are handling the Rights/Public issues of Dhanalakshmi

Bank, Dhandapani Finance, Moschip, Karur Vysya Bank, Lux Hosiery Industries Ltd,
Sah Petroleums Limited, Paradyne Infotech Limited, Yash Papers Limited, SPL
Industries Limited, Provogue (I) Limited, Tulip IT Services Limited, Gati Limited as lead
managers to name a few. They have also been appointed as advisor to some of the GOI
disinvestments. They have actively marketed bond issues of corporations from the States
of Maharashtra, Karnataka & Gujarat and debt issues of all the Financial Institutions like
IDBI, ICICI, IFCI, REC, PFC, SIDBI, etc.
As an Investment Banker, Karvy provides;

• Management of Capital Issues
• Management of Buybacks, Takeovers and Delisting offers
• Private Placement of Debt and Equity
• Mergers and Amalgamations
• Loan Syndication

KARVY COMPUTERSHARE PRIVATE LIMITED
KARVY have traversed wide spaces to tie up with the world’s largest transfer
agent, the leading Australian company, Computershare Limited. The company that
services more than 75 million shareholders across 7000 corporate clients and makes its
presence felt in over 12 countries across 5 continents has entered into a 50-50 joint
venture with us.
With its management team completely transferred to this new entity, they will aim
to enrich the financial services industry than before. The future holds new arenas of client
servicing and contemporary and relevant technologies as they are geared to deliver better
value and foster bigger investments in the business. The worldwide network of
Computershare will hold us in good stead as they expect to adopt international standards
in addition to leveraging the best of technologies from around the world.
Excellence has to be the order of the day when two companies with such similar
ideologies of growth, vision and competence, get together.
Mutual Fund Services:

They have attained a position of immense strength as a provider of across-the-
board transfer agency services to AMCs, Distributors and Investors.
Nearly 40% of the top-notch AMCs including prestigious clients like Deutsche
AMC and UTI swear by the quality and range of services that they offer. Besides
providing the entire back office processing, they provide the link between various Mutual

Funds and the investor, including services to the distributor, the prime channel in this
operation.
Carrying the ‘limitless' ideology forward, they have explored new dimensions in
every aspect of Mutual Fund servicing right from volume management, cost effective
pricing, delivery in the least turnaround time, efficient back-office and front-office
operations to customized service. They have been with the AMCs every step of the way,
helping them serve their investors better by offering them a diverse and customized range
of services. The ‘first to market' approach that is their anthem has earned us the
reputation of an innovative service provider with a visionary bent of mind.
Their service enhancements such as ‘Karvy Converz', a full-fledged call center, a

top-line website (www.karvymfs.com), the ‘m-investor' and many more, creating a
galaxy of customer advantages.
Issue Registry:
In their voyage towards becoming the largest transaction-processing house in the

Indian Corporate segment, they have mobilized funds for numerous corporate, Karvy has
emerged as the largest transaction-processing house for the Indian Corporate sector. With
an experience of handling over 700 issues, Karvy today, has the ability to execute
voluminous transactions and hard-core expertise in technology applications have gained
us the No.1 slot in the business. Karvy is the first Registry Company to receive ISO 9002
certification in India that stands testimony to its stature
Karvy has the backing of skilled human restheirces complemented by requisite

technological packages to ensure a faster processing capability. Karvy has the benefit of a
good synergy between depositories and registry that enables faster resolution to related
customer queries. Apart from its unique investor servicing presence in all the phases of a
public Issue, it is actively coordinating with both the main depositories to develop special

models to enable the customer to access depository (NSDL, CDSL) services during an
IPO.
Their trust-worthy reputation, competent manpower and high-end technology and

infrastructure are the solid foundations on which their success is built.
Corporate Shareholder Services:

Karvy has been a customer centric company since its inception. Karvy offers a
single platform servicing multiple financial instruments in its bid to offer complete
financial solutions to the varying needs of both corporate and retail investors where an
extensive range of services are provided with great volume-management capability.
Today, Karvy is recognized as a company that can exceed customer expectations

which is the reason for the loyalty of customers towards Karvy for all his financial needs.
An opinion poll commissioned by “The Merchant Banker Update” and conducted by the
reputed market research agency, MARG revealed that Karvy was considered the “Most
Admired” in the registrar category among financial services companies.
They have grown from being a pure transaction processing business, to one of
complete shareholder solutions.
KARVY GLOBLE SERVICE PRIVATE LIMITED

The specialist Business Process Outsourcing unit of the Karvy Group. The legacy
of expertise and experience in financial services of the Karvy Group serves us well as
they enter the global arena with the confidence of being able to deliver and deliver well.
Here they offer several delivery models on the understanding that business needs
are unique and therefore only a customized service could possibly fit the bill. Their

service matrix has permutations and combinations that create several options to choose
from.
Be it in re-engineering and managing processes or delivering new efficiencies,
their service meets up to the most stringent of international standards. Their outsourcing
models are designed for the global customer and are backed by sound corporate and
operations philosophies, and domain expertise. Providing productivity
improvements,operational cost control, cost savings, improved accountability and a
whole gamut of other advantages.
They operate in the core market segments that have emerging requirements for
specialized services. Their wide vertical market coverage includes Banking, Financial
and Insurance Services (BFIS), Retail and Merchandising, Leisure and Entertainment,
Energy and Utility and Healthcare.
Their horizontal offerings do justice to their stance as a comprehensive BPO unit

and include a variety of services in Finance and Accounting Outstheircing Operations,
Human Restheirce Outstheircing Operations, Research and Analytics Outstheircing
Operations and Insurance Back Office Outstheircing Operations.
The finance and accounting function in any business has always been a restheirce
and time intensive activity. The advent of computing systems and technology has
enhanced the capabilities to handle volumes and reduce processing times; however the
need for expert administrative support for this non-core business activity has emerged as
a business opportunity for the qualified service providers in this field across the globe
Their services cover the entire spectrum of services ranging from high volume
transaction processing to high value financial analysis and reporting.
The team of financial experts at KARVY Global Services is fully conversant with
the financial processes and accounting systems and create value by their ability to
synergize domain knowledge with processing and technological expertise.

The Finance and Accounting Outsourcing center offers services such as Process
Management, End to End Accounting, Taxation and Financial Analysis & Reporting
services.
The Process Management COE offerings include

Accounts Payable
Accounts Receivable
Billing / Sales Accounting
Purchase Accounting
Reconciliations
Fixed Assets
Inter-company Accounting
The End to End Accounting COE offerings include

Cash Receipts and Payments
Bank Receipts and Payments
Sales and Sales Returns
Purchases and Purchase Returns
Jtheirnal Vouchers
Trial Balance
Financial Statements
The Taxation COE offerings include
Personal Income Tax
Corporate Income Tax
Sales and Local Tax (SALT)
Costs Segregation

The Financial Analysis and Reporting COE offerings include
Financial Statement Analysis
Financial Ratio Analysis
Ageing Analysis
Expense Reporting
Periodic Management Information
Head quartered:
KARVY Global Services is headquartered at Hyderabad, India and operates from
three global delivery centers in Hyderabad.
Their business development offices are located in New York, Chicago and
California in United States, Toronto in Canada and London in United Kingdom and
Horgen in Switzerland. E-mail us to know how they can serve you.
KARVY COMMTRADE LIMITED

Commodities market, contrary to the beliefs of many people, has been in
existence in India through the ages. However the recent attempt by the Government to
permit Multi-commodity National levels exchanges has indeed given it, a shot in the arm.
As a result two exchanges Multi Commodity Exchange (MCX) and National Commodity
and derivatives Exchange (NCDEX) have come into being. These exchanges, by virtue of
their high profile promoters and stakeholders, bundle in themselves, online trading
facilities, robust surveillance measures and a hassle-free settlement system. The futures
contracts available on a wide spectrum of commodities like Gold, Silver, Cotton, Steel,
Soya oil, Soya beans, Wheat, Sugar, Channa etc., provide excellent opportunities for
hedging the risks of the farmers, importers, exporters, traders and large scale consumers.
They also make open an avenue for quality investments in precious metals. The
commodities market, as it is not affected by the movements of the stock market or debt
market provides tremendous opportunities for better diversification of risk. Realizing this
fact, even mutual funds are contemplating of entering into this market.

Karvy Comtrade Limited is another venture of the prestigious Karvy group. With
their well established presence in the multifarious facets of the modern Financial services
industry from stock broking to registry services, it is indeed a pleasure for us to make
foray into the commodities derivatives market which opens yet another door for us to
deliver their service to their beloved customers and the investor public at large.
With the high quality infrastructure already in place and a committed Government
providing continuous impetus, it is the responsibility of us, the intermediaries to deliver
these benefits at the door-steps of their esteemed customers. With their expertise in
financial services, existence across the lengths and breadths of the country and an
enviable technological edge, they are all set to bring to you, the pleasure of investing in
this burgeoning market, which can touch upon the lives of a vast majority of the
population from the farmer to the corporate alike. They are confident that the commodity
futures can be a good value addition to their portfolio.
The company provides investment, advisory and brokerage services in Indian

Commodities Markets. And most importantly, they offer a wide reach through their
branch network of over 225 branches located across 180 cities.
KARVY INSURECE BROKING PRIVATE LIMITED

At Karvy Insurance Broking Pvt.Ltd., they provide both life and non-life
insurance products to retail individuals, high net-worth clients and corporates. With the
opening up of the insurance sector and with a large number of private players in the
business, they are in a position to provide tailor made policies for different segments of
customers. In their journey to emerge as a personal finance advisor, they will be better
positioned to leverage their relationships with the product providers and place the
requirements of their customers appropriately with the product providers. With Indian
markets seeing a sea change, both in terms of investment pattern and attitude of investors,
insurance is no more seen as only a tax saving product but also as an investment product.

By setting up a separate entity, they would be positioned to provide the best of the
products available in this business to their customers.
Their wide national network, spanning the length and breadth of India, further
supports these advantages. Further, personalized service is provided here by a dedicated
team committed in giving hassle-free service to the clients.

Research methodology
Methodology:
The study is based on the primary and secondary data which are collected through the
firms employee’s and clients of the organization.
Data required and collected, primary data is collected through personal interview and
secondary data is collected from internet sources, news papers, magazines published by
the organization.
Method of analysis:
The data collected from questionnaire were put together in the form of tables and
tabulated data are analyzed.
Percentage is calculated for each and every table. Analysis and interpretation is done on
the bases of primary data.
 Inference is drawn from the analysis to represent in the form of bar charts.
 The primary data is diagrammatically represented in the form of bar charts.
 The summery of findings are recorded based on the analysis.

Need for the study:
The study focuses on the investment behavior of individual investors with reference to
Karvy stock broking Ltd Bijapur further study rivals the profile of individual investors.
The scope of the study:
To study the investment behavior of individual have been carried out in Karvy stock
broking Ltd Bijapur.
Projects aims to relevant information of Karvy about the nature of the study the method
used in the research methodology of the study comprehensive background of the study,
the conclusion and suggestions inferred findings.
Objective of the study:

 To study the investment trend.
 To study the profile of individual investors.
 To suggest attracts the individual investors.
Limitation of the study:

 Only 100 respondents were considered for the sample size.
 Analysis of the collection from questionnaires bill will be made on the assumption
that the data provided by the respondent are accurate.
 Area required for the survey within the Bijapur city.
 The study is based on the random sampling.

Proposed out comes and benefits of the study
The study focus on “investment behavior of individual investor in Karvy.” And

the may get benefited through proper analysis of investors behaviour towards the
investment opportunity. The individual investors contribute a major share in the capital
formation. The company is required to give a due attention to even small investors so that
they are attracted to invest their savings.

Table No – 1 Occupation of Client
Frequen Valid Cumulativ

cy Percent Percent e Percent
Valid BUSINESS
17 34.0 34.0 34.0
MAN
PROFESSION
19 38.0 38.0 72.0
ALS
GOVT
7 14.0 14.0 86.0
EMPLOYEE
STUDENTS 5 10.0 10.0 96.0
OTHERS 2 4.0 4.0 100.0
Total 50 100.0 100.0
Graph - 1

Valid Up to Rs.5000 8 16.0 16.0 16.0
Rs.5000 - Rs.
15 30.0 30.0 46.0
15000
Rs. 15000 - Rs.
19 38.0 38.0 84.0
25000
Rs.25000 and
8 16.0 16.0 100.0
above
Total 50 100.0 100.0
Interpretation: The above picture shows that 38% of respondents are professionals, 34%
respondents are business men, 14% of respondents are govt employees, 10% of
respondents are students and rests of 4% are others.
Table No – 2 Monthly Incomes
Graph - 2
40
30
P e rc e n t
20
38
30
10
16 16
0
Up to Rs.5000 Rs.5000 - Rs. 15000 Rs. 15000 - Rs. 25000 Rs.25000 and above
MONTHLY INCOME

Interpretation: The above grape shows that 38% of respondent’s monthly income lies
Frequenc Valid Cumulative

y Percent Percent Percent
Valid YES 50 100.0 100.0 100.0
between Rs.15000 – Rs. 25000, 30% respondents monthly income lies between Rs.5000
– Rs. 15000, 16% of respondents monthly income is more than Rs.25000, 16% of
respondents monthly income is less than Rs 5000.
Table No – 3 Existence of Karvy
Graph - 3
100
80
60
Percent
100
40
20
0
YES
EXISTENCE OF KARVY

Interpretation: The above grape shows that 100% of respondent’s are aware the
existence of Karvy the Finapolis in Bijapur.
Table No – 4 Medias through you come

Valid ADS IN TV 2 4.0 4.0 4.0
ADS IN NEWS
19 38.0 38.0 42.0
PAPER
WALL
5 10.0 10.0 52.0
DUSPLAYS
FRIENDS AND
21 42.0 42.0 94.0
RELATIVES
OTHERS 3 6.0 6.0 100.0
Total 50 100.0 100.0
Graph - 4

50
40
P ercen t
30
42
20
38
10
10
6
4
0
ADS IN TV ADS IN NEWS WALL DUSPLAYS FRIENDS AND OTHERS
PAPER RELATIVES
MEDIAS THROUGH YOU COME
Interpretation: The above grape shows that 42% of respondent’s come to know about
karvy from friends and relatives, 38% are from ads and in news paper, followed by 10%
wall display, 6% from other media and 4% ads in TV.
Table No – 5 financial services of karvy

Valid EQUITY
18 36.0 36.0 36.0
TRADING
COMMODITY
12 24.0 24.0 60.0
TRADING
MUTUAL FUNDS 10 20.0 20.0 80.0
INSURANCE 3 6.0 6.0 86.0
CONSULTANCY
2 4.0 4.0 90.0
SERVICES
IPO SERVICES 5 10.0 10.0 100.0
Total 50 100.0 100.0
Graph - 5

40
30
P e rc e n t
20
36
24
10 20
10
6
4
0
EQUITY COMMODITY MUTUAL FUNDS INSURANCE CONSULTANCY IPO SERVICES
TRADING TRADING SERVICES
FINANCIAL SERVICES OF KARVY
Interpretation: It is clear from table 5 that the majority of respondents (36%) are known
about equity trading; this is followed commodity trading (24%), mutual funds (20%), and
IPO service (10%), Insurance (6%). However, 4% of respondent are taking counsultancy
services

Table No – 6 Investment Plan In Future

Valid YES 50 100.0 100.0 100.0
Graph - 6
100
80
60
Percent
100
40
20
0
YES
INVESTMENT PLAN IN FUTURE
Interpretation: It is clear from the above table that 100% of respondents are interested to
have an investment plan in future.

Table No - 7 Preference of Karvy for Clint Investment

Valid YES 44 88.0 88.0 88.0
NO 6 12.0 12.0 100.0
Total 50 100.0 100.0
Graph - 7
100
80
P e rc e n t
60
88
40
20
12
0
YES NO
PREFERANCE OF KARVY FOR CLINT INVESTMENT
Interpretation: Graph 7 rivals that 88% of respondents are prefer to investment in Karvy
and rest of 12% of respondents wants to invest through other stock brokers.

Table No - 8 Types of Investment Plans

Valid FIXED DEPOSIT 5 10.0 10.0 10.0
EQIUTY 17 34.0 34.0 44.0
IPO 7 14.0 14.0 58.0
COMMODITY
7 14.0 14.0 72.0
TRADING
GOVT
1 2.0 2.0 74.0
SECURITIES
MUTUAL FUNDS 8 16.0 16.0 90.0
INSURANCE 2 4.0 4.0 94.0
OTHERS 3 6.0 6.0 100.0
Total 50 100.0 100.0
Graph - 8
40
30
P ercen t
20
34
10
16
14 14
10
6
4
2
0
FIXED EQIUTY IPO COMMODITY GOVT MUTUAL INSURANCE OTHERS
DEPOSIT TRADING SECURITIES FUNDS
TYPES OF INVESTMENT PLANS
Interpretation: It is clear from graph that the majority of respondents (34%) had
investment plan in equity, followed by mutual fund (16%), (14%) each in IPO and
Commodity trading, 10% in fixed deposit, 6% in others, 4% in insurance and 2% in
government securities.

Table No - 9 Motivation of Investment

Valid PROVISION OF
6 12.0 12.0 12.0
OLD AGE
CAPITAL
7 14.0 14.0 26.0
APPRECIATION
CHILDERN
8 16.0 16.0 42.0
EDUCATION
TO EARN STABLE
AND REGULAR 27 54.0 54.0 96.0
INCOME
OTHER 2 4.0 4.0 100.0
Total 50 100.0 100.0
Graph - 9
60
50
40
P e rc e n t
30
54
20
10
16
14
12
4
0
PROVISION OF OLD CAPITAL CHILDERN TO EARN STABLE OTHER
AGE APPRECIATION EDUCATION AND REGULAR
INCOME
MOTIVATION OF INVESTMENT
Interpretation: Graph 9 rivals that the majority of respondents (54%) agree that the
motive of their investment is to earn stable regular income, followed by children
education (16%), capital appreciation (14%), provision of old age (12%) and other
motives (4%).

Table No - 10 Frequency of Investing

Valid WEEKLY 2 4.0 4.0 4.0
MONTHLY 17 34.0 34.0 38.0
QUARTERLY 11 22.0 22.0 60.0
HALF YEARLY 11 22.0 22.0 82.0
YEARLY 3 6.0 6.0 88.0
NOT
6 12.0 12.0 100.0
INTERESTED
Total 50 100.0 100.0
Graph - 10
40
30
P e rc e n t
20
34
22 22
10
12
6
4
0
WEEKLY MONTHLY QUARTERLY HALF YEARLY YEARLY NOT
INTERESTED
FREQUENCY OF INVESTING
Interpretation: Graph 10 defects that the majority of respondents (34%) invests

monthly, followed by quarterly and half yearly (22%) each, (6%) yearly, (4%) weekly
and (12% of the respondents do not have any investment plan in Karvy.

Table No - 11 Holding of Investment

Valid LESS THAN 1
5 10.0 10.0 10.0
YEAR
1 - 3 YEAR 9 18.0 18.0 28.0
3 -5 YEAR 17 34.0 34.0 62.0
ABOVE 5
13 26.0 26.0 88.0
YEAR
NOT
6 12.0 12.0 100.0
INTERESTED
Total 50 100.0 100.0
Graph - 11
40
30
P e rc e n t
20
34
26
10
18
12
10
0
LESS THAN 1 YEAR 1 - 3 YEAR 3 -5 YEAR ABOVE 5 YEAR NOT INTERESTED
HOLDING OF INVESTMENT
Interpretation: It is clear from graph 11 that the majority of respondents (34%) hold
their investment for a period between 3 to 5 years, followed by (16%) more than 5
years, (18%) between 1 to 3 years, (10%) less than 1 year and (12%) of respondents have
not responded.

Table No - 12 Range of Investment In Annually
Cumulative
Frequency Percent Valid Percent Percent
Valid Up TO RS 30000 8 16.0 16.0 16.0
RS 30000 - 50000 17 34.0 34.0 50.0
50000 - 80000 13 26.0 26.0 76.0
80000 ABOVE 6 12.0 12.0 88.0
NOT
6 12.0 12.0 100.0
INTERESTED
Total 50 100.0 100.0
Graph - 12
40
30
P e rc e n t
20
34
26
10
16
12 12
0
Up TO RS 30000 RS 30000 - 50000 50000 - 80000 80000 ABOVE NOT INTERESTED
RANGE OF INVESTMENT IN ANNUALY
Interpretation: It is clear from graph 12 that 34% of respondents have invested in Karvy
an amount ranging Rs. 30000 to 50000, followed by (16%) in the investment slab 50000
to 80000, (16%) below Rs. 30000, (12%) of respondents have invested above Rs. 8000
and (12%) of respondents have not invested in Karvy.

Chapter: IV
FINDINGS
The following are some major findings of the present study.
1. 38% of the respondents belong to professional class.
2. 38% of the respondents belong to income group between Rs.15000 to 25000 per
month.
3. 100% of respondents are aware of the exiesitstence of Karvy Finpolis in Bijapur
4. The majority of respondents (42%) are came to know about the Karvy finapolis
from friends and relatives.
5. 36% of respondents are aware of the equity trading in Karvy.
6. 100% of respondents have an investment plan in future.
7. The majority of respondents (%88) are prefer Karvy for their investment.
8. 34% of respondents have a plan of investing in equity trading.
9. Respondents (54%) agree that the motive of their investment is to earn stable and
regular income.
10. Then majority of respondents (34%) have prefer to invest monthly from their
savings.
11. The majority of respondents (34%) agree that they hold their investment 3 to 5
years period.
12. That (34%) of the respondents have invested their savings ranging between Rs.
30000 to Rs. 50000 in Karvy stock broking.

SUGGESTIONS
The following suggestion are occurred
1. The majority of investors are investing less than what they have saved
Hence their needs to promote savings schemes which can attract more
Investor to invest in various securities.
2. New attractive avenues of investment may be designed and launched to attract

rural people who may be unaware of some benefits of investment through Karvy.
3. The Karvy need to shows their advertisement in Television media.

CONCLUSION
Stock markets are in boom today, every body wants to know and study about in
order to earn more and more money. Hence, stock market may be considered as a money
market. Potential for stock market is more but due to lack of knowledge people are not
ready to invest in such stock market.
The present study focused on various aspects of investment ins tock market
through Karvy. It is found that the potential investors are ready to invest through karvy
stock broking Ltd.

BIBLIOGRAPHY
1. Security Analysis and portfolio management by Pumithvathy Pandian, Vikas

Publishing house Pvt. Ltd.
2. Indian Financial System by H.R Machiraju, Vikas Publishing house Pvt. Ltd.
3. Karvy Mazines and, News Papers and journal.
Websites:
www.karvy.com
www.bseindia.com

Questionnaire
I Suryakanta. B. Mavingidad, student of MBA IVth sem B L D E A’s A S Patil

college of MBA Programme, conducting a survey on “Investment Behavior of
Individual Investor” with reference to KARVY STOCK BROKING LTD Bijapur. So I
request to you fill the questionnaire and I assure that the given information will use only
for studying purpose and will be kept confidential.
(Please mark as (√) in front of your choice)
1. Name:
Address:
Phone no:
2. Age:
3. Gender:
[ ] Male [ ] Female
4. Occupation:
[ ] Business man [ ] Professionals
[ ] Govt employee [ ] Students
[ ] Others specify
5. Monthly income:
[ ] Up to Rs.5000 [ ] Rs.5000-Rs.15000
[ ] Rs.15000-Rs.25000 [ ] Rs.25000 and above
6. Do you know the existence of KARVY finapolis in Bijapur?

[ ] Yes [ ] No
7. How you came to know about the KARVY finapolis?

[ ] Ads in TV [ ] Ads in news paper
[ ] Wall displays [ ] Friends and relatives
[ ] Others specify
8. Which financial services/ products you know in KARVY?

[ ] Equity trading [ ] Commodity trading
[ ] Mutual funds [ ] Insurance
[ ] Consultancy services [ ] IPO services

9. Do you have investment plan in future?
[ ] Yes [ ] No
(If yes continue, else go to Q. no. 16)
10. Would you prefer KARVY for your investment?

[ ] Yes [ ] No
11. Which type of investment plan you have?

[ ] Fixed deposit [ ] Equity
[ ] IPO [ ] Commodity trading
[ ] Govt. securities [ ] Mutual funds
[ ] Insurance [ ] Other
12. What motivates to you invest in KARVY?

[ ] Provision of old age [ ] Capital appreciation
[ ] Children education [ ] To earn stable and regular income
[ ] Others specify
13. What is the frequency of investing?

[ ] Weekly [ ] Monthly
[ ] Quarterly [ ] Half-yearly
[ ] Yearly
14. How long would you like to hold your investment?

[ ] Less than 1 year [ ] 1-3 year
[ ] 3-5 year [ ] Above 5 years
15. How much amount you invested in Karvy annually?

[ ] Up to Rs.30000 [ ] Rs.30000-Rs.50000
[ ] Rs.50000-Rs.80000 [ ] Rs.80000 And above
16. Suggestions.
Thank you for your co-operation

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EXECUTIVE SUMMARY

B L D E A’s A S Patil College of MBA Programme, Bijapur.

B L D E A’s A S Patil College of MBA Programme, Bijapur.

B L D E A’s A S Patil College of MBA Programme, Bijapur.

Investing in various types of assets is an increasing activity that attracts people

There are basically three concepts of investment:

1. Economic investment- That is, an economist’s definition of investment.

B L D E A’s A S Patil College of MBA Programme, Bijapur.

The major intermediaries in the capital market are:

B L D E A’s A S Patil College of MBA Programme, Bijapur.

This end is achieved in a modern business through the mechanism of shares. A

By enabling the convertibility of ownership in product market into financial assets

All investments are characterized by certain features are:

1. Return: All investors are characterized by the expectation of a return. In fact,

B L D E A’s A S Patil College of MBA Programme, Bijapur.

The risk of an investment depends on the following factors:

1. The longer the maturity period, the larger is the risk.

4. Liquidity: An investment which is easily saleable or marketable without loss of

B L D E A’s A S Patil College of MBA Programme, Bijapur.

There are mainly two types of risks they are:

Unsystematic risk arises due to short supply of raw materials, disputes in

B L D E A’s A S Patil College of MBA Programme, Bijapur.

1. Investor is ready to take moderate risk while speculator is willing to undertake

GAMBLING AND INVESTMENT

A gamble is usually a very short term investment in a game or chance. Gambling

B L D E A’s A S Patil College of MBA Programme, Bijapur.

B L D E A’s A S Patil College of MBA Programme, Bijapur.

WORLD WAR II AND AFTER:

A period of unprecedented prosperity to the stock exchanges ushered in world war

B L D E A’s A S Patil College of MBA Programme, Bijapur.

Organization of Indian stock exchanges

B L D E A’s A S Patil College of MBA Programme, Bijapur.

2. Short-term capital/ Working capital: it represent the amount of capital invested in

The methods of payment in international trade are:

Meaning and Definition of Capital Market:

B L D E A’s A S Patil College of MBA Programme, Bijapur.

 The new issue market or primary market

The primary market is made up of two components

B L D E A’s A S Patil College of MBA Programme, Bijapur.

1. Companies issuing securities: as per the SEBI guidelines, companies intending to

B L D E A’s A S Patil College of MBA Programme, Bijapur.

B L D E A’s A S Patil College of MBA Programme, Bijapur.

B L D E A’s A S Patil College of MBA Programme, Bijapur.

EARLY DAYS OF KARVY

B L D E A’s A S Patil College of MBA Programme, Bijapur.

B L D E A’s A S Patil College of MBA Programme, Bijapur.

B L D E A’s A S Patil College of MBA Programme, Bijapur.

B L D E A’s A S Patil College of MBA Programme, Bijapur.

As per the Quality Policy, Karvy will:

B L D E A’s A S Patil College of MBA Programme, Bijapur.

Karvy Computershare Private Limited, today, is India's largest Registrar and

B L D E A’s A S Patil College of MBA Programme, Bijapur.

B L D E A’s A S Patil College of MBA Programme, Bijapur.

B L D E A’s A S Patil College of MBA Programme, Bijapur.

KARVY STOCK BROKING LIMITED

Stock Broking Services

B L D E A’s A S Patil College of MBA Programme, Bijapur.

This crucial information is given as a constant feedback to their customers,

B L D E A’s A S Patil College of MBA Programme, Bijapur.

B L D E A’s A S Patil College of MBA Programme, Bijapur.

Distribution of Financial Products

Their monthly magazine, Finapolis, provides up-dated market information on

B L D E A’s A S Patil College of MBA Programme, Bijapur.