Investor Investmetn in Stock Market

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V.M.PATEL COLLEGE OF MANAGEMENT STUDIES

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It's a great pleasure and privilege in presenting this Project Report to one and allconcerned. My deepest gratuity to GEOJIT FINANCIAL SERVICES LIMITED,MEHSANA to undergo research of STUDY OF INVESTOR INVESTMENTBEHAVIOR IN STOCK MARKET & SUGGESTING GOOD INVESTMENTSTRATEGY

The successful completion of a project requires active participation of many peoplefrom the time of inception of an idea to its implementation, many brain workstogether and that only provides fruitful results.

I am highly indebted to PROF HARESH OZA for bestowing me his kind andgracious facilitation during the research period. Without his prudent guidance andencouragement the project would not have been possible.

I would also like to express my sincere thanks to other people at GEOJITFINANCIAL SERVICES LIMITED, MEHSANA, for their invaluable contribution andguidance in making this Project Report. I would also like to thank all therespondents who fill up the questionnaire without their response it is not possiblefor me to complete the research.

I also like to thank all those people who have knowingly and unknowinglycontributed in one way or other in making this Project a more completely one withtheir valuable tips and suggestion.


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For preparing the project report, I have visited the Geojit Financial Services

Limited for 21 days during the suggested duration from 27-10 2008 to 16-11-

2008, to avail the necessary information. I have filled up the questionnaire

with the customers of Geojit Financial Services Limited. The blend of learning

and knowledge acquired during my practical studies at the company is

presented in this project report.

The project report starts with the research objectives, basic information

regarding the research approach, the sample size for my research is 60 and

I have used simple random sampling method for my research and the sources

for data collection is both primary sources and secondary sources., after this I

have shown the data analysis of each question and for analysis I have used

percentile method and at last I have written findings and some of the

limitations which I have faced during my research work.


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I hope that the information incorporated in this project report would be

appreciated as I have put in may be efforts in leaving no stone unturned as I

consider it to be true, fair and relevant in its content and context to the best ofmy knowledge and ability.

Sr. Particulars Page no.

1 Preface 2

2 Acknowledgement 3

3 Executive summary 4

4 Introduction about the company 6

5 Research Objectives 13

6 Research Methodology 14

7 Data analysis 15

8 Findings 30

9 Limitations 31

10 Conclusion 32

11 Bibliography 33

12 Annexure 34


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INTRODUCTION ABOUT THE COMPANY

Mr. C.J. George and Mr. Ranajit Kanjilal founded Geojit as a partnership firm in the year

1987. In 1993, Mr. Ranajit Kanjilal retired from the firm and Geojit became a proprietaryconcern of Mr. C .J. George. In 1994, it became a Public Limited Company by the name

Geojit Securities Ltd. The Kerala State Industrial Development Corporation Ltd. (KSIDC),

in 1995, became a co-promoter of Geojit by acquiring 24% stake in the company, the onlyinstance in India of a government entity participating in the equity of a stock broking

company. Geojit listed at The Stock Exchange, Mumbai (BSE) in the year 2000. In 2003,the Company was renamed as Geojit Financial Services Ltd. (GFSL). The board of thecompany consists of professional directors; including a Kerala government nominee with

2/3rd of the board members being Independent Directors. With effect from July 2005, the

company is also listed at The National Stock Exchange (NSE). Geojit is a charter member

of the Financial Planning Standards Board of India and is one of the largest DP brokers inthe country.

CORPORATE OFFICE

5th Floor, Finance Towers, Kaloor,

Kochi 682 017.

Ph : 0484 2405501/2

Fax : 2405618


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email : [email protected]

www.geojit.com

Management

Mr. C. J. George Managing Director

Mr. Satish Menon Director (Operations)

Mr. A. Balakrishnan Chief Technology Officer

Mr. K. Venkitesh National Head - Distribution

Mr. Stefan Groening Director (Planning and Control)

Mr. Jean-Christophe GOUGEON Director (Marketing)

Mr. Binoy .V.Samuel Chief Financial Officer

Mrs. Jaya Jacob Alexander Chief of Human Resources

Board of directors

Mr. A. P. Kurian Non - Executive & Independent Chairman

Mr. C. J. George Managing Director & Chief Promoter

Mr. P.H.Kurian Non - Executive Director

Mr. Mahesh Vyas Non - Executive & Independent Director

Mr. Rakesh Jhunjhunwala Non - Executive Director

Mr. Ramanathan Bupathy Non - Executive & Independent Director


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Mr. Punnoose George Non - Executive Director


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HISTORY & DEVELOPMENT

1986

Membership In Cochin Stock Exchange(CSE)


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1994

Become A Public Limited Company Named Geojit Securities Limited

1995

Kerala State Industrial Development Corporation Ltd.(KSIDS) Acquires 24%

Equity Stake

Membership In National Stock Exchange

1996

Launch Of Portfolio Management Services With Sebi Registration

1997

Depositary Participant (DP) Under National Securities DepositaryLimited(NSDL)


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1999

Membership In Bombay Stock Exchange(BSE)

2000

BSE Listing

1st Brocking Firm In India To Offer Online Trading Facality

Commences Derivatives Trading With NSE

Establishes The 1st Bank Gateway In The Country For Internet Trading

2001

Becomes Indias First DP To Launch Depositary Transactions Through

Internet

Establishes Joint Venture In The UAE To Serve NRI Clients

2002

1st In India To Launch An Integrated Internet Trading System For Cash &

Derivatives Segments

2003

Geojit Commodities Limited, Wholly Owned Subsidiary, Launches Online

Futures Trading In Agri-Commodities, Precious Metals And Energy Futures

On Multiple Commodity Exchanges

Company Renamed As Geojit Financial Services Limited.

2005

NSE Listing

Geojit Credits, A Subsidiary, Registers With RBI As A Non-Banking

Financial Company (NBFC)

2007


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BNP Paribas Takes A Stake In The Equity Of Geojit , Making It The Largest

Share-Holder

Charter Member Of The Financial Planning Standards Board Of India


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RESEARCH OBJECTIVESMAIN OBJECTIVE OF THE RESEARCH

The objective of my research is TO STUDY INVESTOR

INVESTMENT BEHAVIOR IN STOCK MARKET & SUGGESTING

GOOD INVESTMENT STRATEGY

OTHER OBJECTIVES

To study the investment habit of the people in the stock market.

To know about the peoples preference for investment whether

investment or trading


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To understand the frequency of investment in the market

To analyze from total saving how much portion of amount people invest

in stock market

To understand how much people invest at a time

To know that for how much period people invest in stock market

To understand the expected return of people from investment

To know on what basis people invest in stock market

The preference of people for investment in a particular sector

To analyze the preferred price range of share by people

To understand the peoples investment strategy

To find out the common mistakes made by investors

To define certain views for making money in stock market

RESEARCH METHODOLOGY

RESEARCH APPROACH

To achieve this objective I have conducted a survey and then collected data andanalyzed it and lastly find out the needed results

SAMPLING METHOD

I have used simple random sampling method for my research


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SOURCES OF DATA COLLECTION

Data sources of are two types1) Primary data sources

2) Secondary data sources

1) Primary data sourcesPrimary data can be collected through the questionnaire. Which contain the different

question about the investment behavior and investment strategy. Primary datasources are very helpful for research. This provides information related to the

investors investment behavior & investment strategy.

2) Secondary data sourcesSecondary data can be collected through e-learning. It provides information

regarding Geojit Financial Services Limited

SAMPLE SIZE

I used 60 samples for my study

STATASTICAL TOOL USED FOR DATA ANALYSIS

PERCENTILE METHOD

AREA OF STUDY

THE CUSTOMERS OF GEOJIT FINANCIAL SERVICES LIMITED,

MEHASANA

DATA ANALYSIS

1. From how many years you are in the stock market?

0-2 year 2-4 year

4-6 year more than 6 year


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No. of years No. of persons

0-2 year 21

2-4 year 244-6 year 9

more than 6 year 6

As shown above 35 % persons of my study have experience of about 2 years, about 40 %

persons of my study have experience about 2 to 4 years, 15 % persons of my study have

experience about 4 to 6 years, about 10 % persons of my study have experience of morethan 6 years in stock market.

2. How much investment have you made in the market? (Approximate)

0-2 lakh 2-4 lakh

4-6 lakh more than 6 lakh


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Investment No. of persons

0-2 lack 30

2-4 lack 18

4-6 lack 9more than 6 lack 3

As per my research about 50 % persons would like to invest up to 2 lack while 30 %

persons would like to invest 2 to 4 lack and about 15 % persons would like to invest 4 to 6

lack while only 5 % persons would like to invest more than 6 lack. So company shouldfocus on those customers who would like to invest more in stock market.

3. Who brings you in stock market?

Friends & Relative News paper


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Advertise Mega public issue

Source No. of persons

Friends & Relative 42News paper 12

Advertise 0

Mega public issue 6

As per above chart about 70 % persons would like to invest in stock market as per opinion

of their friends and relatives while 20 % persons would like to invest as per newspaper and

magazines and persons do not like to invest through advertising and about 10 % personswould like to invest as per mega public issue. So it can be conclude that most of the people

invest as per opinion of their friends and relatives.


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4. What you prefer more?

Investment Trading Both

Preference No. of persons

Investment 36

Trading 18

Both 6

As per my research 60 % persons prefer investment while 30 % persons prefer trading andonly 10 % persons prefer both investment & trading. So we can conclude that majority of

the people prefer to invest rather than trading in the stock market.


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5 How much investment experience do you have?

Very little knowledge & experience

Some investment knowledge & understanding

Very huge experience & good knowledge of investment

Experience No. of persons

Very little knowledge & experience 6

Some investment knowledge & understanding 42

Very huge experience &good knowledge of investment 12

As per above chart 10% persons have Very little knowledge & experience while about 70 %persons have Some investment knowledge & understanding and about 20% persons have


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Very huge experience &good knowledge of investment. From above information it is clear

that the majority of people who invest in stock market have average knowledge ofinvestment.

6. How frequently do you invest in the market?

Weekly Monthly

Quarterly Half yearly

Frequency of investment No. of persons

Weekly 24

Monthly 18Quarterly 8

Half yearly 10

As per my research about 40 % persons would like to invest weekly in stock market while

30% persons would like to invest monthly in stock market and about 13.33% persons would

like to invest quarterly in stock market while about 16.67% persons would like to investhalf yearly in stock market.


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7. From total saving how much portion of amount you invest in stock market?

10-20% 20-40% 40-60%

60-80% 80-100%

Investment in stock market No. of persons

10-20% 10

20-40% 24

40-60% 18

60-80% 4

80-100% 4


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As per above chart about 16.66% persons invest 10 to 20% of their saving while about 40%

persons invest 20 to 40% of their saving and about 30% persons invest 40 to 60% of theirsaving and about 6.67% persons invest 60 to 80% of their saving while about 6.67%

persons invest 80 to 100% of their saving.

8 How much do you invest at a time? (In1000Rs.)

Up to 5 5-10

10-15 15-20

20-25 More than 25

Investment at a time (In1000Rs.) No. of persons

Up to 5 20

5-10 20

10-15 1015-20 2

20-25 2

More than 25 6


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As per my research about 33.34% persons invest up to 5000 Rs. At a time and about 33.345

persons invest 5000 to 10000 Rs. At a time while about 16.66% persons invest 10000 to15000 Rs. At a time and about 3.33% persons invest 15000 to 20000 Rs. At a time while

another 3.33% persons would like to invest 20000 to 25000 Rs. At a time and about 10%

persons invest more than 25000 Rs. At a time.

9. For how much period you made investment?

8-10 Days 1-3 Month

3-6 Month 6-12 Month

More than 1year

Period for investment No. of persons

8-10 Days 4

1-3 Month 24

3-6 Month 6

6-12 Month 18More than 1year 8


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Above chart shows that about 6.67% persons invest for 8 to 10 days while about 40%

persons invest for 1 month to 3 month and about 10% persons invest for 3 month to 6month while 30% persons invest for 6 month to 12 month and about 13.33% persons invest

for more than one year.

10How much return you expect on your investment decision?

8-12% 12-16%

16-20% More than 20%

Expected return No. of persons

8-12% 18

12-16% 11


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16-20% 16

More than 20% 15

As per my research 30% persons expect 8 to 12% return while 18.33% persons expect 12 to

16% return and about 26.67% expect 16 to 20% return while 25% persons expect more than2

11. On what basis you take your investment decision?

Brokers advise Market situation

Tips, paid service News paper, Magazine


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Companys news, Result Own study

10%

13.33%10%

20%

20%26.67%

Brokers advise 20%

Market situation

20%

Tips, paid service

10%

News paper,

Magazine 13.33%

Companys news,

Result 10%Own study 26.67%

Above chart shown the various factors and its impact on investment and how investor

consider such factors while investing. The chart suggest that people much like to invest

according to their own study of stock market.

12. At current level which sector do you prefer more for investment?


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Base No.of personsBrokers advise 12

Market situation 12

Tips, paid service 6

News paper, Magazine 8

Companys news, Result 6

Own study 16


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Banking & Construction Energy & Power

Reality (real estate) Engineering

Metal Information technology

Capital Goods Financial Services

FMCG Telecom


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Sector No. of persons

Banking & Construction 8

Energy & Power 12

Reality (real estate)

5

Engineering 4

Metal 4

Information technology 7

Capital Goods 5

Financial Services 6

FMCG 6

Telecom 3


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Banking &Construction

13%

Energy & Power

20%

Reality

(real estate)

8%

Engineering

7%

Metal

7%

Information

technology

12%

Capital Goods

8%

Financial

Services

10%

FMCG10%

Telecom

5%

13. From below mentioned share price range which range do you prefer for

Buying share?

Below Rs.50 Rs.50-100

Rs100-500 More than Rs.500

Price range No. of persons

Below Rs.50 6

Rs.50-100 26

Rs100-500 20

More than Rs.500 8


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Above chart shows the price range preferred by various persons. From the above chart it

can be conclude that majority of people prefer the price of share from 50 to 100.

14. What is your Investment strategy?

Dont invest more than 40% of your income

Intention (market) environment based selection of sector and in that

sector invest in powerful companies

Installment type investment like SIP

Invest at every decline

Invest for long term


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Invest in Blue Chip Company with good management.

More investment, more money

Invest in company which give good return to shareholder & have good

performance. Invest in short term profit making companies.

Take delivery and wait up to sufficient return

15. In your opinion what are the mistakes made by common investors?

Buy when price of share is high

Dont buy when price of share is low

Purchase according to others views & tips

Not buying in correction

Buying speculative shares

Buy at every upside and sell at every decline

Invest money without understanding risk factor of sector and company

Investors do not have patience.

16. What are your views for making money in stock market?

Long term investment in powerful companies in recession time

Buy in correction

Avoid penny and speculative shares Buy at every decline and sell at every upside

Give more time to your investment

Invest your money systematically

Study the companies, make your own policies for investment and do not

fall victim of fear and greed

To make money, take chances

Buy shares when people sell and sell shares when people buy

17. Give your opinion reasons for this major correction?

World recession


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Forth coming political elections

Excessive rise of equities market in recent time

Global financial crisis

American subprime issue Lowest consumers and industrial demand

Historical recession in world market

Stock loss their trust in public

Change in normal investors thinking regarding stock

Inflation

Foreign investor


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People who invest in stock market have experience of stock market average 2 to 4

years.

Most of the people do not want to invest in stock market more than 2 lack.

Many people take decision to invest in stock market as per opinion of their friends

and relatives.

People prefer to invest in stock market rather than trading

People who invest in stock market have some investment knowledge &understanding regarding stock market.

Most of the people make investment in stock market weekly or monthly.

People would like to invest about 40% of their saving in stock market.

People like to invest up to 10,000 rs. At a time

Most of the people would like to invest for 1 to 3 months in stock market.

Most of the people expect 15 % return of their investment.

Most of the people invest on the basis of their own study, brokers advice & marketsituation.

Most of the people prefer to invest in energy & power sector and banking &construction sector.

Most of the people prefer price of share about 50 to 100 rs.

Invest in company which give good return to shareholder & have good performance.

Take delivery and wait up to sufficient return

Intention (market) environment based selection of sector and in that sector invest in

powerful companies Long term investment in powerful companies in recession time

Study the companies, make your own policies for investment and do not fall victim

of fear and greed


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Some of the respondent does not give proper answers of questions.

Respondent refuse to give answers of questions.

Mostly in my research I have to face language barrier, people do notunderstand English language well, so I have to explain them in Gujarati.

It is difficult to complete the research well in 21 days.

Some respondent tries to avoid feeling questionnaire.


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It is a good experience for me to conduct research about study of investor

investment behavior in stock market & suggesting good investment strategy.

It will prove very helpful to me in my future career.

While conducting this research I can understand the strategies of the people

who invest in stock market, their preference for investment, their experience of

stock market, frequency of investment, expected return, on which basis they

invest & their views to about to make money in stock market.


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WEBSITE

www.geojit.com

ANNEXURE

Questionnaire


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Dear Sir/ Madam,

I am student of B.B.A programme in V.M.Patel Collage OfManagement Studies, Kherva. I m conducting a survey on study of investor

investment behavior in stock market & suggesting good investment

strategy in Mehsana city. Please help me in this by answering the followingsimple questions. I will treat any information you give me in strictest confident

and will use only for academic purpose.

1. From how many years you are in the stock market?

0-2 year 2-4 year

4.6 year more than 6 year

2. How much investment have you made in the market? (Approximate)

0-2 lakh 2-4 lakh

4-6 lakh more than 6 lakh

3. Who brings you in stock market?

Friends & Relative News paper

Advertise Mega public issue

4. What you prefer more?


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Investment Trading Both

5. How much investment experience do you have?

Very little knowledge & experience

Some investment knowledge & understanding

Very huge experience & good knowledge of investment

6. How frequently do you invest in the market?

Weekly Monthly

Quarterly Half yearly

7. From total saving how much portion of amount you invest in stock market?

10-20% 20-40% 40-60%

60-80% 80-100%

8. How much do you invest at a time? (In1000Rs.)

Up to 5 5-10

10-15 15-20

20-25 More than 25

9. For how much period you made investment?

8-10 Days 1-3 Month

3-6 Month 6-12 Month

More than 1year

10. How much return you expect on your investment decision?

8-12% 12-16%


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16-20% More than 20%

11. On what basis you take your investment decision?

Brokers advise

Market situation

Tips, paid service

News paper, Magazine

Companys news, Result

Own study

12. At current level which sector do you prefer more for investment?

Banking & Construction Energy & Power

Reality (real estate) Engineering

Metal Information technology

Capital Goods Financial Services

FMCG Telecom

13. From below mentioned share price range which range do you prefer for

Buying share?

Below Rs.50 Rs.50-100

Rs100-500 More than Rs.500

14. What is your Investment strategy?

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15. In your opinion what are the mistakes made by common investors?


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16. What are your views for making money in stock market?

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17. Give your opinion reasons for this major correction?

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--------------------------------------- PERSONAL

INFORMATION-------------------------------------

NAME: ---------------------------------------------------------------------

ADDRESS: -------------------------------------------------------------AGE: ------------ YEARS

PROFESSION:

A) BUSINESS B) SERVICE C) PROFESSION D) OTHER

ANNUAL INCOME:

A) LESS THAN 50,000 B) 50,000 TO 1,00,000

C) 1, 00,001 TO 3, 00,000 D) 3, 00,001 TO 5, 00,000

E) MORE THAN 5, 00,000

V M PATEL COLLEGE OF MANAGEMENT STUDIES

Investor Investmetn in Stock Market

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