Stock Holding Corporation of India Ltd, Bangalore

Introduction to Depository

Securities kept electronic form Similar to Bank Depositories- NSDL & CDSL Depository participants Benefit to investors SHCIL is the intermediary for NSDL & CDSL

Basic Facts about SHCIL

It is incorporated on 28th July, 1986 Indias first & largest DP 142 offices in 80 cities(13 in Karnataka) Has wide rang of services Stock broking Services

Investment

Investor Investment Avenues Portfolio Diversification Sources of study Fundamental Analysis

Topic of Study

Study of Investors preferences and trends

To understand Investors behavior on investment To study present trend for Investment To study portfolio of investor and there basis of study To study Investors preferences and trends

Objectives

Methodology

Collection of Data

Primary Source Secondary Source

Selection of sample

Population Sample Frame Sample Size Sample Method

Analysis & Findings

Relation between Income & Investment

120000 100000 80000 70000 60000 40000 20000 0 Below 1.5 Lakhs 1.5 to 3 lakhs 3 to 4.5 Lakhs 4.5 lakhs and Above 28500 45000 100000 Investment per annum (Weightge Average)

Annual income

From above table and chart we can come to know that the income of investor increases his investment also increases and % increase of investment is more than % increase in income.

Type of Investment
40 35 30 25 20 15 10 5 0 Short Term Investment Long Term Investment Both 17 36 27

The survey reveals that 36 (45%) investors invest for long term period. And 27(34%) investors invest in both long term and short term securities. And remaining investors 17(21%) for short term period. The survey has shown that most of the investors are investing for long term.

Frequent of investment (gap between two investments)

11 11

13 Weekly Monthly Quarterly Half Yearly 25 Yearly

20

From the above graph we come to know that 31% of investors are investing monthly. 25% investors are investing quarterly. It shows 56% of investors are investing money either monthly or quarterly. And among these most of them are employed.

Basis of Investment
54 60 50 40 30 20 10 0 Self Analysis Financial Advice Broker Advice F/R Advice CA Advice 19 11 11 5

From this we can come to know most of the investor (67%) base their investment on self analysis and remaining 33% of investors take advice from advisers such as brokers, financial advisors, friends or relatives or chartered accountants for making their investment decisions.

Sources of study for investment

36 27 27 20 Percentage

Business Channel

Business Dailies

Business Magazines

Internet

From the graph we can observe that source of information for majority of investors is business dailies. But, business news channels and business magazines are also important sources of study.

Investment pattern affected by market movement

Yes, 53 60 50 40 30 20 10 0 Frequency No, 27

From the chart we can come to know that for 53 (66%) investors investment pattern will be affected if there are changes in market movement (BSE index, Nifty etc). Market movement is very important factor for changing in investment pattern

Important factors to choice various investment alternatives

10 24

16 Risk Involved Return they give Past performance Future Growth 30 Other factor

20

From the chart we can see that for 30(37%) of investors the most important factor considered for investment decision is return on investment, second important factor is future growth and then past performance of the company third important factor considered for investment is the risk involved.

Findings

Investors undertake study of the markets, industry, firms before taking decisions about investment. Return on investment and credit rating these two important factors for 70% investor who is interested in investing in Bonds/Debenture. Past record of the firm, Dividend record and Future growth, these three important factor for 60% of investor before taking any decision about investment in equity. Equity is the most important investment avenue among all investment options. Second important investment avenue among various alternatives are mutual fund and insurance. Least important investment avenues are investments in PPF and real estate.

Suggestion

Since the internet and web based communication is getting popular SHCIL should update web site frequently and provide information up to date Since investors investment decision is based on study of different sources of information. SHCIL should start giving advertisement in business dailies and in business magazine. Most of the investors portfolio is diversified so there is huge scope in various new services. So SHCIL should come with new intermediaries services. SHCIL should conduct awareness program aggressively for its Stock Brokering services as it is a new service provided by SHCIL awareness among investors is very low. SHCIL should start NSE futures and option index (Derivatives) and commodity market trading very aggressively because most of the investors are investing in equity. And these markets are growing very fast.

Thank you