Project on Commodity Future

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    A report on

    SUMMER INTERNSHIP PROJECT

    Carried out at

    On

    INVESTOR PERCEPTION ON COMMODITY FUTURE

    Submitted to

    Gujarat Technological University

    Prepared by:

    KRUNAL K. NATHANI

    Guided by:

    Ms. NISHA CHOKSI

    (LECTURER)ENROLLMENT NO:

    107440592069

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    COMPANY PROFILE

    With over two decades of expertise and reputed position inFinancial Services, PUSHPAK is one of the leading stock

    broking company from Bhavnagar, Gujarat.

    PUSHPAK was established in 1988, over the years theyhave built a reputation by providing various products &

    services to our esteemed customers. Their Services include

    Equity, Commodities, Derivatives, Currency Trading, IPO,

    Depository Services etc.

    Their business are mainly divided into three verticals.

    PUSHPAKSecurities, Commodity Broking & Finstock.

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    COMPANY PROFILE

    Name: Amit shah

    Company: BOLD (PUSHPAK THE WEALTH CREATER)

    Address:2130-A/2, VRAJRAJ , 3rd Floor,Near Reliance Super Market,

    Atabhai Road

    City: Bhavnagar

    State: Gujarat

    Country: INDIA

    Zip: 364001

    Telephone Number :

    Board: 0278-3003170 to 75 , 0278-2560283

    Equity:

    Commodity:

    Fax

    (A/C) 0278-3297700

    (A/C) 9377100638

    0278-2471552

    Email Address :Website:

    [email protected] ://www.PUSHPAKsecurities.com

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    GUIDELINES BY THE RBI

    PERTAINING TO

    COMMODITY FUTURE

    TRADING

    SECURITIES AND

    EXCHANGE BOARD OF

    INDIA

    A brief description of the hedging

    strategy proposed

    The risk management policyapproved

    by the Board of Directors

    covering

    Any other relevant information

    Participation of Securities

    Brokers in Commodity Futures

    Market

    Risk containment measures

    Utilization of existing

    infrastructure of stock exchanges

    literature review

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    RESEARCH

    Problem of study:-

    Investors perception on commodity future

    Objective of study

    Source of study

    Collection method used

    Limitation of study

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    Findings

    I found that 80% of the respondents were maleIt can be seen that 52% of the respondents were

    in the age group of 20-30 years, 24% were in the age

    group of 30-40 years

    40% & 56% were in the income group of bellow

    rs.4lakh & rs. 4 to 10 lacks respectively

    60%of the respondents were in the Graduate group,36% were in the post graduate group

    92% of the respondents have invested in commodity

    futures

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    Findings 72% of the people invested in other securities

    out of the respondents who have invested in other

    securities, 35% of them have invested in shares, 20%

    Mutual funds, 15% in real estate

    52% of the respondents have good experience with previous

    investment, 36% of the respondents have bad experience with

    investment in previous time

    24% of them trade everyday, 64% traded only when

    there is good price

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    Findings

    24% of them had invested Rs. 2 lack, 48% of them had invested

    between Rs. 2-3 lack, 24% had invested between Rs. 3-5 lack

    28% investor invest in wheat, 22% investor invest in cotton, 28%

    investor invest in coffee, and 22%

    investor invest in corn.

    44% of the investors have invested between 20-30% of their

    savings in commodity futures, 32% of them have invested

    between 10-20% of their savings

    60% of the investors got to know about commodity futures

    through their friends/family, 24% of the investors got to know

    through self-research

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    32% of them have invested with the objective a less risky

    investment, 36% of them invested with the objective of diversifyinghid portfolio and 24% of them due to the expectation of very good

    returns

    Techniques of risk management are switching, average, locking

    and cut loss with 12%,18%,48% and12% respectively

    76% of the investors feel that the facility fee charged by

    their company is reasonable, 20% of them feel that the facility

    fee charged by their company is high

    68% of theinvestors feelthattheygotgood returnsfrom

    commodity futurestrading, 24% ofthemfeelthat theygotreasonable

    returnscommodityfutures

    Findings

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    Findings

    88% oftheinvestorsfeelthatriskcanbereduced through

    commodity futures

    92% ofthe investors feel that commodityfuturesisagood

    investmentopportunity

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    The prime objective of this study is to attempt to prove thatcommodity futures can be efficiently used to reduce risks of

    a person who is directly involved with the trading of the

    commodity. Another objective was to prove that it was a

    sound investment opportunity.

    Commodity futures trading included the intermediary

    and trading participants likes brokers who make use of

    the various technical analysis tools in order to make

    predictions of the price movements they also take intoconsideration the fundamental analysis. Thus with the help of

    the various analysis tools, efficient price predictions can be made,

    where the investors in commodity futures can benefit from the

    price movements. There was also an objective to analyze the

    growth of commodity future. From the analysis, it can be

    CONCLUSION

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    Commodity futures trading is experiencing tremendous

    growth. This can be emphasized by the fact that there has

    been an increasing trend in the volume traded in most of

    the commodities. Thus, commodity futures are a growing

    market.

    To find out the investors perception towards

    commodity futures, questionnaire survey was conducted,

    where in various parameters were taken into consideration. From

    the questionnaire, it could be concluded that most of the

    respondents felt that risk could be reduced through

    commodity futures and that it was a sound investment

    opportunity.

    CONCLUSION

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    BIBLIOGRAPHY

    BOOKS:

    Research Methodology, New Age International Pvt. Ltd.

    -By C.R.Kothari

    M.T.Khan & P.K.Jain Financial Management Text, Problems

    & Cases, Tata Mcgraw Hill, 4th Edition.

    WEBSITE:

    www.pushpaksecurities.com

    www.nseINDIA.com

    rddddwww.neINDIA.com

    www.bseINDIA.com

    www.bseww.omega-elevators.com

    www.wikipedia.org

    www.google.com

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    ` Realfunctionofofficework.

    ` Teamworkandco-ordination.

    ` HowtodoAnalysisfinancialstatement.

    ` Howcommodityfutureisactuallyworks.

    ` HowRBI&SEBIregulatingcommodities

    ` HowSIPisimportantforthepracticeoffuturecorporate

    world.

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    Thank you

    NAME :- NATHANI KRUNAL K.

    ENROLLMENT NO. :- 107440592069

    College :- R.K. College of Business and

    Management

    EMAIL ID :- [email protected]