A Study On Investment Horizons of Investors in India

A STUDY ON INVESTMENT HORIZONS OF INVESTORS IN INDIA
PROJECT REPORT
ON
A STUDY ON INVESTMENTS HORIZONS OF
INVESTORS IN INDIA
In partial fulfillment for the award of degree
of
Master of Business Administration (MBA)

1
PREFACE
This project report pertains to the making of a PROJECT of M.B.A. curriculum.
The PURPOSE of this project is to make the students to have thorough knowledge of the topics
given to them. learned a lot from the hard work put in to collect information regarding the
same! which would "e of great use in m# near future as a professional.
$ustification cannot "e done to whatever have learnt within a few pages "ut have still tried m#
"est to cover as much as possi"le a"out A STUDY ON INVESTMENT HORIZONS OF
INVESTORS IN INDIA in this report.
%eing students of &asters in %usiness 'dministration! we need to "e aware of the organi(ational
internal environment.
)
ACKNO!ED"EMENT
Starting with e*pression of immense pleasure and jo# to "ack and white the words of sincere and
lo#al gratitude! to the honora"le fellows who have provided helpful towards the tasks of
accomplishment of the project work under the heading of #A STUDY ON INVESTMENT
HORIZONS OF INVESTORS IN INDIA$. +o work in this world can completed successfull# if
it is not provided guidance in the right direction. n this regard owe sincere thanks to m#
research supervisor Mr. Dil%%& Kum'r! ,arv# Stock %roking -imited! .#dera"ad who
contri"uted his valua"le aptitude to a practical shape in characteri(ing and "uilding the features
of the project. /ithout his help and guidance would not have "een a"le to complete this
strenuous task. .
.e and other facult# mem"ers guided me throughout the project! never accepted less than m#
"est efforts. There are special acknowledgements to m# friends "ecause the# have helped me in
report writing that it left to me alone! would never have "een done. Of course! like an# other
author! am inde"ted alwa#s to those people that do their "est to improve on m# "est.
0
THE E(ECUTIVE SUMMARY
PROJECT UNDERTAKEN BY ME
The project studied "# me in ,arv# Stock %roking! 1handigarh! was A STUDY ON
INVESTMENT AUDIT OF INVESTORS OF INDIA.
K'r)* S+oc, -ro,i./ !imi+%0 is ndia2s leading capital markets compan# with 'll3ndia
Presence and an e*tensive client "ase. ,arv# Stock %roking possesses state of the art trading
platform! "est "roking practices and is the pioneer in trading product innovations.
HO IT AS UNDERTAKEN
' surve# was conducted "# me among the investors. &an#3a3times! stock market
investors take their investment calls "ased on certain prejudiced views which are often erroneous
in nature. .owever! such investors are reluctant to stop following the m#ths the# traditionall#
"elieve in! unless the#2re e*plained as to wh# their views are illogicall# supported. t is
important that investors keep a realistic view of the market terminologies.
'n appointment was fi*ed with the investors of the respected areas in which +1%ir )i%2
&oi.+ 2'3 3+u0i%04 c%r+'i. 5u%3+io.3 2%r% '3,%0 r%/'r0i./ +1% I.)%3+m%.+ A)%.u%3
A)'il'-l% '+ +1% S+oc, M'r,%+; 'c+i)i+i%3 'r% +o -% i.clu0%0 -* +1% com&'.* &ro0uc+3 i.
r%/'r0 +o these benefits;6 +o 21'+ %7+%.+ i+ %ff%c+3 +1% l%)%l of 3'+i3f'c+io. and how far it is
"eneficial for the investors. There views helped me a lot to practicall# understand m# project.
4
CHAPTER 8
INTRODUCTION

5
8. INDIAN STOCK MARKET
8.8 I.+ro0uc+io.
ndian Stock &arkets is one of the oldest in 'sia. ts histor# dates "ack to nearl# )66 #ears
ago. The earliest records of securit# dealings in ndia are meager and o"scure. T1% E'3+ I.0i'
Com&'.* was the dominant institution in those da#s and "usiness in its loan securities used to
"e transacted towards the close of the eighteenth centur#.
%# 17068s "usiness on corporate stocks and shares in %ank and 1otton presses took place in
%om"a#. Though the trading list was "roader in 1709! there were onl# half a do(en "rokers
recogni(ed "# "anks and merchants during 1746 and 1756. The 17568s witnessed a rapid
development of commercial enterprise and "rokerage "usiness attracted man# men into the
field and "# 17:6 the num"er of "rokers increased into :6. n 17:63:1 the 'merican 1ivil
/ar "roke out and cotton suppl# from United States to Europe was stopped; thus! the 9S1'r%
M'.i'9 in ndia "egan. The num"er of "rokers increased to a"out )66 to )56.
't the end of the 'merican 1ivil /ar! the "rokers who thrived out of 1ivil /ar in 17<4!
found a place in a street =now appropriatel# called as >alal Street? where the# would
convenientl# assem"le and transact "usiness. n 177<! the# formall# esta"lished in %om"a#!
the :N'+i)% S1'r% '.0 S+oc, Bro,%r39 A33oci'+io.$4 which is alternativel# known as #T1%
S+oc, E7c1'./%:. n 1795! the Stock E*change ac@uired a premise in the same street and it
was inaugurated in 1799. Thus! the Stock E*change at %om"a# was consolidated.
The ndian stock market has "een assigned an important place in financing the ndian
corporate sector. The principal functions of the stock markets areA
ena"ling mo"ili(ing resources for investment directl# from the investors
providing li@uidit# for the investors and monitoring.
>isciplining compan# management.
:
T1% +2o m';or 3+oc, %7c1'./%3 i. I.0i' 'r%<=
N'+io.'l S+oc, E7c1'./% =+SE?
Bom-'* S+oc, E7c1'./% =%SE?.
8.> N'+io.'l S+oc, E7c1'./%
/ith the li"erali(ation of the ndian econom#! it was found inevita"le to lift the ndian stock
market trading s#stem on par with the international standards. On the "asis of the
recommendations of high powered Pherwani 1ommittee.
The +ational Stock E*change was incorporated in 199) "# ndustrial >evelopment %ank of
ndia! ndustrial 1redit and nvestment 1orporation of ndia! ndustrial Binance 1orporation of
ndia! all nsurance 1orporations! selected commercial "anks and others.
T1% N'+io.'l S+oc, E7c1'./% =+SE? is ndia8s leading stock e*change covering various cities
and towns across the countr#. +SE was set up "# leading institutions to provide a modern! full#
automated screen3"ased trading s#stem with national reach. The E*change has "rought a"out
unparalleled transparenc#! speed C efficienc#! safet# and market integrit#. t has set up
facilities that serve as a model for the securities industr# in terms of 3*3+%m3! &r'c+ic%3 and
&roc%0ur%3.
Tr'0i./ '+ NSE c'. -% cl'33ifi%0 u.0%r +2o -ro'0 c'+%/ori%3<
1ol%3'l% 0%-+ m'r,%+
C'&i+'l m'r,%+
1ol%3'l% 0%-+ m'r,%+ operations are similar to mone# market operations 3 institutions and
corporate "odies enter into high value transactions in financial instruments such as government
securities! treasur# "ills! pu"lic sector unit "onds! commercial paper! certificate of deposit! etc.
C'&i+'l m'r,%+A ' market where de"t or e@uit# securities are traded.
<
T1%r% 'r% +2o ,i.03 of &l'*%r3 i. NSE<
Tr'0i./ m%m-%r3
P'r+ici&'.+3
Recogni(ed mem"ers of +SE are called trading mem"ers who trade on "ehalf of themselves
and their clients. Participants include trading mem"ers and large pla#ers like "anks who take
direct settlement responsi"ilit#.
Trading at +SE takes place through a full# automated screen3"ased trading mechanism which
adopts the principle of an order3driven market. Trading mem"ers can sta# at their offices and
e*ecute the trading! since the# are linked through a communication network.
The prices at which the "u#er and seller are willing to transact will appear on the screen. /hen
the prices match the transaction will "e completed and a confirmation slip will "e printed at the
office of the trading mem"er.
+SE has several advantages over the traditional trading e*changes. The# are as followsA
+SE "rings an integrated stock market trading network across the nation.
nvestors can trade at the same price from an#where in the countr# since inter3market
operations are streamlined coupled with the countr#wide access to the securities.
>ela#s in communication! late pa#ments and the malpractice2s prevailing in the traditional
trading mechanism can "e done awa# with greater operational efficienc# and informational
transparenc# in the stock market operations! with the support of total computeri(ed network.
NSE Nif+*
SCP 1+D +ift# is a 2%ll=0i)%r3ifi%0 ?@ 3+oc, i.0%7 accounting for )) sectors of the
econom#. t is used for a variet# of purposes such as "enchmarking fund portfolios! inde*
"ased derivatives and inde* funds.
+SE came to "e owned and managed "# ndia nde* Services and Products -td. =S-?! which is
a joint venture "etween +SE and 1RS-. S- is ndia8s first speciali(ed compan# focused upon
7
the inde* as a core product. S- have a consulting and licensing agreement with Standard C
Poor8s =SCP?! who are world leaders in inde* services. 1+D stands for 1RS- +SE ndices.
1+D ensures common "randing of indices! to reflect the identities of "oth the promoters! i.e.
+SE and 1RS-. Thus! 818 Stands for 1RS-! 8+8 stands for +SE and D stands for E*change or
nde*. The SCP prefi* "elongs to the US3"ased Standard C Poor8s Binancial nformation
Services.
8.A Bom-'* S+oc, E7c1'./%
T1% Bom-'* S+oc, E7c1'./% is one of the oldest stock e*changes in 'sia. t was esta"lished
as :T1% N'+i)% S1'r% B S+oc, Bro,%r3 A33oci'+io.: in 17<5. t is the first stock e*change
in the countr# to o"tain permanent recognition in 195: from the Eovernment of ndia under
the Securities 1ontracts =Regulation? 'ct! 195:. The E*change8s pivotal and pre3eminent role
in the development of the ndian capital market is widel# recogni(ed and its inde*! SENSE(,
is tracked worldwide.
SENSE(
The Stock E*change! &um"ai =%SE? in 197: came out with a stock inde* that su"se@uentl#
"ecame the "arometer of the ndian stock market.
SE+SED is not onl# scientificall# designed "ut also "ased on glo"all# accepted construction
and review methodolog#. Birst compiled in 197:! SE+SED is a -'3,%+ of A@ co.3+i+u%.+
3+oc,3 representing a sample of large! li@uid and representative companies. The "ase #ear of
SE+SED is 19<73<9 and the "ase value is 166. The inde* is widel# reported in "oth domestic
and international markets through print as well as electronic media.
>ue to is wide acceptance amongst the ndian investors; SE+SED is regarded to "e the pulse
of the ndian stock market. 's the oldest inde* in the countr#! it provides the time series data
over a fairl# long period of time. Small wonder! the SE+SED has over the #ears "ecome one
of the most prominent "rands in the countr#.
9
The SE+SED captured all these events in the most judicial manner. One can identif# the
"ooms and "usts of the ndian stock market through SE+SED.
The launch of SE+SED in 197: was later followed up in $anuar# 1979 "# introduction of %SE
+ational nde* =%aseA 1970374 F 166?. t comprised of 166 stocks listed at five major stock
e*changes.
The values of all %SE indices are updated ever# 15 seconds during the market hours and
displa#ed through the %O-T s#stem! %SE we"site and news wire agencies.
'll %SE3indices are reviewed periodicall# "# the Ginde* committeeH of the e*change.
>.OVERVIE OF THE RE"U!ATORY FRAMEORK OF THE CAPITA!
MARKET IN INDIA
ndia has a financial s#stem that is regulated "# independent regulators in the sectors of
"anking! insurance! capital markets and various service sectors. The ndian Binancial s#stem
is regulated "# two governing agencies under the &inistr# of Binance. The# are
1. R%3%r)% B'., of I.0i'
The R% was set up in 1905 and is the central "ank of ndia. t regulates the financial
and "anking s#stem. t formulates monetar# policies and prescri"es e*change control
norms.
). T1% S%curi+i%3 E7c1'./% Bo'r0 of I.0i'
The Eovernment of ndia constituted SE% on 'pril 1)! 1977! as a non3statutor# "od#
to promote orderl# and health# development of the securities market and to provide
investor protection.
16
D%&'r+m%.+ Eco.omic Aff'ir3
The capital markets division of the >epartment of Economic 'ffairs regulates capital markets
and securities transactions.
The capital markets division has "een entrusted with the responsi"ilit# of assisting the
Eovernment in framing suita"le policies for the orderl# growth and development of the
securities markets with the SE%! R% and other agencies. t is also responsi"le for the
functioning of the Unit Trust of ndia =UT? and Securities and E*change %oard of ndia
=SE%?.
The principal aspects that are dealt with the capital market division areA
Polic# matters relating to the securities market
Polic# matters relating to the regulation and development and investor protection of the
securities market and the de"t market.
Organi(ational and operational matters relating to SE%

T1% C'&i+'l M'r,%+ i3 /o)%r.%0 -*<
Securities 1ontract =Regulation? 'ct! 195:
Securities 1ontract =Regulation? Rules! 195<
SE% 'ct! 199)
1ompanies 'ct 195:
SE% =Stock %rokers and Su" %rokers? Rules! 199)
E*change %#e3-aws Rules C Regulations
S%lf=r%/ul'+i./ Rol% of +1% E7c1'./%
The e*change functions as a Self Regulator# Organi(ation with the parameters laid down "#
the S1R'! SE% 'ct! SE% Euidelines and Rules! %#e3laws and Regulations of the E*change.
The Eoverning %oard discharges these functions. The E*ecutive >irector has all the powers of
the governing "oard e*cept discharging a mem"er indefinitel# or declaring him a defaulter or
11
e*pelling him. The E*ecutive >irector takes decisions in the areas like surveillance!
inspection! investigation! etc. in an o"jective manner as per the parameters laid down "# the
governing "oard or the statutor# committees like the >isciplinar# 'ction 1ommittee.
A.TRADIN" ITH STOCK MARKET
This section will introduce us a"out the process and instruments used to help a customer or a
client to trade with arcadia securities. This process is almost similar to an# other trading firm
"ut there will "e some difference in the cost of "rokerage commission.
Tr'0i./< t is a process "# which a customer is given facilit# to "u# and sell share this "u#ing
and selling can onl# "e done through some "roker and this is where 'rcadia helps its customer.
' customer willing to trade with an# "rokerage house need to have a demat account! trading
account and saving account with a "rokerage firm. 'n# one having following document can
open all the a"ove mentioned account and can start trading.
Docum%.+ R%5uir%0<
0 photographs = signed across?
Photo dentification Proof 3 an# of the following 3 Ioter >J>riving -icenseJPassport.
'ddress Proof an# of the following 3 Ioter >J>riving -icenseJ PassportJ %ank statement
or pass "ook sealed and attestation "# "ank officialJ %S+- landline "ill.
' crossed 1he@ue favoring G,arv# Stock %rokingH. Of the re@uired amount. The amount
for >emat as well as trading will "e Rs. 966J3=free >emat K966 Trading 'ccount? the
minimum amount "eing Rs. 966 a che@ue can "e given for a larger amount.
1op# of P'+ 1ard is mandator#.
Registration ,it
1>S- >emat ,it
%ank and address proof declaration.
P'+ name discrepanc# form.
These documents ma# not "e consumer friendl# "ut it is to avoid illegal transaction and to
prevent "lack mone# this ensures that mone# invested is accounted.
1)
A.8 T%c1.i5u%3 '.0 I.3+rum%.+3 for Tr'0i./
The various techni@ues that are availa"le in the hands of a client areA3
1. >eliver#
). ntrada#
0. Buture
4. Borwards
5. Options
:. swaps
B'3ic R%5uir%m%.+ for 0oi./ Tr'0i./
Trading re@uires Opening a >emat account. >emat refers to a demateriali(ed account.
Lou need to open a >emat account if #ou want to "u# or sell stocks. So it is just like a "ank
account where actual mone# is replaced "# shares. /e need to approach the >epositor#
Participants =>P! the# are like "ank "ranches?! to open >emat account.
' 0%&o3i+or* is a place where the stocks of investors are held in electronic form. The
depositor# has agents who are called 0%&o3i+or* &'r+ici&'.+3 =>Ps?.
Think of it like a "ank. The head office where all the technolog# rests and details of all
accounts held is like the depositor#. 'nd the >Ps are the "ranches that cater to individuals.
There are onl# two depositories in ndia M
The +ational Securities >epositor# -td =+S>-? and the
1entral >epositor# Services -td =1>S-?.
10
C'&i+'l M'r,%+ P'r+ici&'.+3<
%anks
E*changes
1learing 1orporations
%rokers
1ustodians
>epositories
nvestors
&erchant %ankers
T*&%3 of I.)%3+or3<
nstitutional nvestors3 &Bs J B J Bs J %anks
Retail nvestors
'r"itrageurs J Speculators
.edgers
>a# tradersJ$o""ers
Com-i.'+io. of Fu+ur%3 '.0 O&+io.
.edging! means! minimi(ing the risk! i.e.! minimi(ing the losses. Under inde* futures and
inde* options investor can minimi(e his losses. .edging does not remove losses "ut removes
unwanted e*posure! i.e. unnecessar# risk. One should not enter into a hedging strateg# hoping
to make e*cess profits; all it can do is reduce the risk.
C. PARAMETERS OF INVESTMENT
The nature of investment differs from individual to individual and is uni@ue to each one "ecause
it depends on various parameters like future financial goals! the present C the future income
14
model! capacit# to "ear the risk! the present re@uirements and lot more. 's an investor progresses
on hisJher life stage and as hisJher financial goals change! so does the uni@ue investor profile.
Economic development of a countr# depends upon its investment. The emerging economic
environment of competitive markets signif#ing customer2s sovereignt# has profound
implications for their savings and investment. nvestment means person2s commitments towards
his future.
C.8 INVESTMENT
The word NinvestmentN can "e defined in man# wa#s according to different theories and
principles. t is a term that can "e used in a num"er of conte*ts. .owever! the different meanings
of NinvestmentN are more alike than dissimilar.
Eenerall#! investment is the application of mone# for earning more mone#. nvestment also
means savings or savings made through dela#ed consumption.
'ccording to economics! investment is the utili(ation of resources in order to increase income or
production output in the future.
'n amount deposited into a "ank or machiner# that is purchased in anticipation of earning
income in the long run are "oth e*amples of investments. 'lthough there is a general "road
definition to the term investment! it carries slightl# different meanings to different industrial
sectors.
'ccording to economists! investment refers to an# ph#sical or tangi"le asset! for e*ample! a
"uilding or machiner# and e@uipment.
On the other hand! finance professionals define an investment as mone# utili(ed for "u#ing
financial assets! for e*ample stocks! "onds! "ullion! real properties! and precious items.
'ccording to finance! the practice of investment refers to the "u#ing of a financial product or an#
valued item with an anticipation that positive returns will "e received in the future.
The most important feature of financial investments is that the# carr# high market li@uidit#. The
method used for evaluating the value of a financial investment is known as valuation.
'ccording to "usiness theories! investment is that activit# in which a manufacturer "u#s a
15
ph#sical asset! for e*ample! stock or production e@uipment! in e*pectation that this will help the
"usiness to prosper in the long run.
C.8.8 C1'r'c+%ri3+ic3 of '. i.)%3+m%.+ 0%ci3io.<
1. t involves the commitment of funds availa"le with #ou or that #ou would "e getting in
the future.
). The investment leads to ac@uisition of a plot! house! or shares and de"entures.
0. The ph#sical or financial assets #ou have ac@uired are e*pected to give certain "enefits in
the future periods. The "enefits ma# "e in the form of regular revenue over a period of
time like interest or dividend or sales or appreciation after some point of time as normall#
happens in the case of investment in land or precious metals.
C.8.> E33%.+i'l3 of I.)%3+m%.+
Essentials of investment refer to wh# investment! or the need for investment! is re@uired.
The investment strateg# is a plan! which is created to guide an investor to choose the most
appropriate investment portfolio that will help him achieve his financial goals within a particular
period of time.
'n investment strateg# usuall# involves a set of methods! rules! and regulations! and is
designed according to the e*change or compromise of the investor8s risks and returns.
' num"er of investors like to increase their earnings through high3risk investments! whilst others
prefer investing in assets with minimum risk involved. .owever! the majorit# of investors
choose an investment strateg# that lies in the middle.
nvestment strategies can "e "roadl# categori(ed into the following t#pesA
'ctive strategiesA One of the principal active strategies is market timing =an investor is
a"le to move into the market when it is on the low and sell the stocks when the market is
on the high?! which is applied for ma*imi(ing #ields.
Passive strategiesA Bre@uentl# implemented for reducing transaction costs.
One of the most popular strategies is the "u# and hold! which is "asicall# a long term
investment plan. The idea "ehind this is that stock markets #ield a commenda"le rate of return in
spite of stages of fluctuation or downfall. nde*ing is a strictl# passive varia"le of the "u# and
1:
hold strateg# and! in this case! an investor purchases a limited num"er of ever# share e*isting in
the stock market inde*! for e*ample the Standard and Poor 566 nde*! or more pro"a"l# in an
inde* fund! which is a form of a mutual fund.
'dditionall#! as the market timing strateg# is not applica"le for small3scale investors!
it is advisa"le to appl# the "u# and hold strateg#. n case of real estate investment the retail and
small3scale investors appl# the "u# and hold strateg#! "ecause the holding period is normall#
e@ual to the total span of the mortgage loan.
C.> PRINCIP!ES OF INVESTMENT
Five bsi! "#in!i"$es serve as the foundation for the investment approach. The# are as followsA
Focu3 o. +1% lo./ +%rm
There is su"stantive empirical evidence to suggest that e@uities provide the ma*imum risk
adjusted returns over the long term. n an attempt to take full advantage of this phenomenon!
investments would "e made with a long term perspective.
I.)%3+m%.+3 co.f%r &ro&or+io.'+% o2.%r31i&
The approach to valuing a compan# is similar to making an investment in a "usiness.
Therefore! there is a need to have a comprehensive understanding of how the "usiness
operates.
M'i.+'i. ' m'r/i. of 3'f%+*
The "enchmark for determining relative attractiveness of stocks would "e the intrinsic value
of the "usiness. The nvestment &anager would endeavor to purchase stocks that represent a
discount to this value! in an effort to preserve capital and generate superior growth.
M'i.+'i. ' -'l'.c%0 ou+loo, o. +1% m'r,%+
1<
The investment portfolio would "e regularl# monitored to understand the impact of changes
in "usiness and economic trend as well as investor sentiment. /hile short3term market
volatilit# would affect valuations of the portfolio! this is not e*pected to influence the
decision to own fundamentall# strong companies.
Di3ci&li.%0 '&&ro'c1 +o 3%lli./
The decision to sell a holding would "e "ased on either the anticipated price appreciation
"eing achieved or "eing no longer possi"le due to a change in fundamental factors affecting
the compan# or the market in which it competes! or due to the availa"ilit# of an alternative
that! in the view of the nvestment &anager! offers superior returns.
n order to implement the investment approach effectivel#! it would "e important to
periodicall# meet the management face to face. This would provide an understanding of their
"road vision and commitment to the long3term "usiness o"jectives. These meetings would
also "e useful in assessing ke# determinants of management @ualit# such as orientation to
minorit# shareholders! a"ilit# to cope with adversit# and approach to allocating surplus cash
flows.
17
C.A INVESTMENT PROCESS
Fi/ur% .o. C.8 I.)%3+m%.+ Proc%33
C.C INVESTMENT TYPES
' particular investor normall# determines the i.)%3+m%.+ +*&%3 after having formulated the
investment decision! which is termed as capital "udgeting in financial le*icon. /ith the
proliferation of financial markets there are more options for investment t#pes.
'ccording to the financial terminolog# investment means the followingA
O Purchasing Securities in &one# or 1apital &arkets
O %u#ing &onetar# or Paper Binancial 'ssets in &one# or 1apital &arkets
O nvesting in -i@uid 'ssets like Eold! Real Estate and 1ollecti"les
19
I.)%3+m%.+
A.'l*3i3
V'lu'+io.
Por+folio
co.3+ruc+io.
Por+folio evaluation
Fr'mi./ of
i.)%3+m%.+ &olic*
nvestors assume that these forms of investment would furnish them with some revenue "# wa#
of positive cash flow.
These assets can also affect the particular investor positivel# or negativel# depending on the
alterations in their respective values.
nvestments are often made through the intermediaries who use mone# taken from individuals to
invest. 1onse@uentl# the individuals are regarded as having claims on the particular
intermediar#.
t is common practice for the particular intermediaries to have separate legal procedures of their
own. Bollowing are some intermediariesA
%anks
&utual Bunds
Pension Bunds
nsurance 1ompanies
1ollective nvestment Schemes
nvestment 1lu"s
nvestment in the domain of personal finance signifies funds emplo#ed in the purchasing of
shares! investing in collective investment plans or even purchasing an asset with an element of
capital risk. n the field of real estate! investments impl# "u#ing of propert# with the sole
purpose of generating income.
nvestment in residential real estate could "e made in the form of "u#ing housing propert#! while
investments in commercial real estate is made "# owning commercial propert# for corporate
purposes that are geared to generate some amount of revenue.
I.)%3+m%.+
)6
The mone# #ou earn is partl# spent and the rest saved for meeting future e*penses. nstead of
keeping the savings idle #ou ma# like to use savings in order to get return on it in the future. This
is called nvestment.
1* 31oul0 o.% i.)%3+D
One needs to invest toA
earn return on #our idle resources
generate a specified sum of mone# for a specific goal in life
make a provision for an uncertain future
C.? VARIOUS OPTIONS AVAI!AB!E FOR INVESTMENT

O.% m'* i.)%3+ i.
P1*3ic'l '33%+3 like real estate! goldJjewelr#! commodities etc. or
Fi.'.ci'l '33%+3 such as fi*ed deposits with "anks! small saving instruments with post
offices! insuranceJ providentJ
P%.3io. fu.0 %+c. or securities market related instruments like shares! "onds! de"entures
etc.
V'riou3 S1or+=+%rm fi.'.ci'l o&+io.3 ')'il'-l% for i.)%3+m%.+.
%roadl# speaking! savings "ank account! mone# marketJli@uid funds and fi*ed deposits with
"anks ma# "e considered as short3term financial investment options.
S')i./3 B'., Accou.+ is often the first "anking product people use! which offers low interest
=4P35P p.a.?! making them onl# marginall# "etter than fi*ed deposits.
Fi7%0 D%&o3i+3 2i+1 B'.,3 are also referred to as term deposits and minimum investment
period for "ank B>s is 06 da#s. Bi*ed >eposits with "anks are for investors with low risk
appetite! and ma# "e considered for :31) months investment period as normall# interest on less
than : months "ank B>s is likel# to "e lower than mone# market fund returns.
V'riou3 !o./=+%rm fi.'.ci'l o&+io.3 ')'il'-l% for i.)%3+m%.+.
)1
Po3+ Offic% S')i./3< Post Office &onthl# ncome Scheme is a low risk saving instrument!
which can "e availed through an# post office. t provides an interest rate of 7P per annum!
which is paid monthl#.
&inimum amount! which can "e invested! is Rs. 1!666J3 and additional investment in multiples
of 1!666J3. &a*imum amount is Rs. 0! 66!666J3 =if Single? or Rs. :!66!666J3 =if held jointl#?
during a #ear. t has a maturit# period of : #ears.
' "onus of 16P is paid at the time of maturit#. Premature withdrawal is permitted if deposit is
more than one #ear old. ' deduction of 5P is levied from the principal amount if withdrawn
prematurel#; the 16P "onus is also denied.
Pu-lic Pro)i0%.+ Fu.0< ' long term savings instrument with a maturit# of 15 #ears and interest
pa#a"le at 7P per annum compounded annuall#. ' PPB account can "e opened through a
nationali(ed "ank at an#time during the #ear and is open all through the #ear for depositing
mone#. Ta* "enefits can "e availed for the amount invested and interest accrued is ta*3free. '
withdrawal is permissi"le ever# #ear from the seventh financial #ear of the date of opening of the
account and the amount of withdrawal will "e limited to 56P of the "alance at credit at the end
of the 4th #ear immediatel# preceding the #ear in which the amount is withdrawn or at the end of
the preceding #ear whichever is lower the amount of loan if an#.
Com&'.* Fi7%0 D%&o3i+3< These are short3term =si* months? to medium3term =three to five
#ears? "orrowings "# companies at a fi*ed rate of interest which is pa#a"le monthl#! @uarterl#!
semi3annuall# or annuall#.
The# can also "e cumulative fi*ed deposits where the entire principal along with the interest is
paid at the end of the loan period. The rate of interest varies "etween :39P per annum for
compan# B>s. The interest received is after deduction of ta*es
Bo.03< t is a fi*ed income =de"t? instrument issued for a period of more than one #ear with the
purpose of raising capital.
The central or state government! corporations and similar institutions sell "onds. ' "ond is
generall# a promise to repa# the principal along with a fi*ed rate of interest on a specified date!
called the Maturity Date.
))
Mu+u'l Fu.03< These are funds operated "# an investment compan# which raises mone# from
the pu"lic and invests in a group of assets =shares! de"entures etc.?! in accordance with a stated
set of o"jectives. t is a su"stitute for those who are una"le to invest directl# in e@uities or de"t
"ecause of resource! time or knowledge constraints. %enefits include professional mone#
management! "u#ing in small amounts and diversification. &utual fund units are issued and
redeemed "# the Fu.0 M'.'/%m%.+ Com&'.* "ased on the fund8s net asset value =+'I?!
which is determined at the end of each trading session. +'I is calculated as the value of all the
shares held "# the fund! minus e*penses! divided "# the num"er of units issued.
C.?.8 E5ui+* I.)%3+m%.+ <=
E@uit# investment refers to the trading of stocks and "onds in the share market. t is also
referred to as the ac@uisition of e@uit# or ownership participation in the compan#.
'n e@uit# investment is t#picall# an ownership investment! where the investor owns an asset of
the compan#. n this kind of investment there is alwa#s a risk of the investor not earning a
specific amount of mone#. E@uit# investment can also "e termed as pa#ment to a firm in return
for partial ownership of that firm. 'n e@uit# investor! in some cases! ma# assume some
management control of the firm and ma# also share in future profits.
n order to understand e@uit# investment properl#! it is necessar# to see the technical and
fundamental anal#sis. The technical anal#sis of e@uit# investment is primaril# the stud# of price
histor# of the shares and stock market. ' fundamental anal#sis of e@uit# investment involves the
stud# of all availa"le information that is relevant to the share market in order to predict the future
trends of the stock market. The annual reports! industr# data and stud# of the economic and
financial environment are also included in the fundamental information of e@uit# investment.
C.?.> Mu+u'l Fu.03 '.0 S%/r%/'+%0 Fu.03
&utual funds or other forms of pooled investment measures are e@uities held "# private
individuals "ut managed and governed "# prominent management firms. These t#pes of financial
)0
holdings allow individual investors to diversif# their holdings and avoid potential loss.
Segregated funds! on the other hand! are used "# large private investors who wish to hold their
shares directl# rather than in a mutual fund.
The prime advantage in investing in a pooled fund is that it gives the individual access to
professional advice through the fund manager. The major disadvantages involved are that the
investors must pa# a fee to the fund managers and that the diversification of the fund ma# not "e
appropriate for all investors. n those cases! the investors ma# over3diversif# "# holding several
funds! thus reducing the risk.
Mu+u'l fu.03 are supposed to "e the "est mode of investment in the capital market since the#
are ver# cost "eneficial and simple! and do not re@uire an investor to figure out
which securities to invest into. ' mutual fund could simpl# "e descri"ed as a financial medium
used "# a group of investors to increase their mone# with a predetermined investment.
The responsi"ilit# for investing the pooled mone# into specific investment channels lies with the
fund manager of said mutual fund.
Therefore investment in a mutual fund means that the investor has "ought the shares of the
mutual fund and has "ecome a shareholder of that fund. >iversification of investment nvestors
are a"le to purchase securities with much lower trading costs "# pooling mone# together in a
mutual fund rather than tr# to do it on their own. .owever the "iggest advantage that mutual
funds offer is diversification which allows the investor to spread out his mone# across a wide
spectrum of investments. Therefore when one investment is not doing well! another ma# "e
doing taking off! there"# "alancing the risk to profit ratio and considera"l# covering the overall
investment.
The "est form of diversification is to invest in multiple securities rather than in just one securit#.
&utual funds are set up with the precise o"jective of investing in multiple securities that can run
into hundreds. t could take weeks for an investor to investigate on this kind of scale! "ut with
investment in mutual funds all this could "e done in a matter of hours.
T*&%3 of Mu+u'l Fu.03 EMo0% of I.)%3+m%.+F

&utual Bund T#pes nvestment Bunds
)4
'merican &utual Bunds
%&O &utual Bunds
1anadian &utual Bunds
Bidelit# &utual Bunds
.artford &utual Bunds
nvesting in &utual Bunds
Top &utual Bunds
>#namic &utual Bund
$anus &utual Bunds
Ianguard &utual Bunds
&utual Bunds Performance

C.?.A DEBENTURES< = n financial conte*t! >e"entures are >e"t nstruments issued for a
long term "# governments and "ig institutions for rising funds. The >e"enture has some
resem"lances to "onds "ut the securiti(ation terms and conditions are different for >e"entures
compared to a "ond.
' >e"enture is commonl# considered as insecure "ecause there is no pledge or lien on particular
assets. +evertheless! a >e"enture is secured "# all the assets which are otherwise not pledged.
f there is a "ankruptc#! >e"enture holders will "e counted as general creditors.
The "enefit that the issuer enjo#s from issuing a de"enture is that the# keep particular assets free
of encum"rances so the option is open to issue them for future financing.
Usuall#! >e"entures are freel# negotia"le de"t instruments. The >e"enture holder works as a
lender to the >e"enture issuer.
n return! the >e"enture issuer pa#s interest to the >e"enture holders as it is paid in case of a
loan. n practical application! the difference "etween a %ond and a >e"enture is not alwa#s kept.
n some instances! >e"entures are also referred to as %onds and vice3versa.
TYPES OF DEBENTURES
1onverti"le >e"enture
+on31onverti"le >e"enture
Participative >e"enture
+on3 Participative >e"enture
Redeema"le >e"enture
rredeema"le >e"enture
)5

C.?.C BOND MARKET< = The -o.0 m'r,%+ is a financial market that acts as a platform
for the "u#ing and selling of de"t securities. The "ond market is a part of the capital market
serving platform to collect fund for the pu"lic sector companies! governments! and corporations.
There are a num"er of "ond indices that reflect the performance of a "ond market.
The "ond market can also called the de"t market! credit market! or fi*ed income market. The si(e
of the current international "ond market is estimated to "e Q45 trillion. The major "ond market
participants areA governments! institutional investors! traders! and individual investors.
'ccording to the specifications given "# the %ond &arket 'ssociation! there are five t#pes of
"ond markets.
The# areA
1orporate %ond &arket
&unicipal %ond &arket
Eovernment and 'genc# %ond &arket
Bunding %ond &arket
&ortgage %acked and 1ollaterali(ed >e"t O"ligation %ond &arket
C.?.? S1'r% M'r,%+ I.)%3+m%.+
Shares are purchased and sold on the primar# and secondar# share markets. To invest in the
share market! investors ac@uire a call option! which is the right to "u# a share! or a put option!
which is the right to sell a share. n general! investors "u# put options if the# e*pect prices to
rise! and call options if the# e*pect prices to fall.. The value of a derivative depends on the value
of the underl#ing asset. The various classifications of derivatives relevant to share market
investment areA
Swap
Butures 1ontract
Borward 1ontract
Option 1ontract
' forward contract is agreements "etween two parties purchase or sell a product in the future! at
a price determined now. This mutual agreement satisfies the profit motive of "oth the "u#er and
):
seller! and the uncertainties and risks of price fluctuations in the future are a"orted. ' future
contract is different from a forward contract in the sense that the former re@uires the presence of
a third part# and the commitment for trade is simpl# notional.
%efore a share is chosen for investment! a technical anal#sis of the share is performed. The price
and volume of a share over a period of time are tracked and then a "usiness plan is constructed.
' fundamental anal#sis involves a close stud# of the compan# associated with the share! and its
performance over time. The fundamental anal#sis is important for the share market investor.
The price levels of a traded share are as followsA
Opening PriceA This is the price at which the market opens. n other words! it is the price
of the first transaction.
1losing PriceA This is the price at the time of closing of the market or the price of the last
trade.
ntra3>a# .ighA This denotes the ma*imum price at which the share was traded in the
da#.
ntra3>a# -owA This is the minimum price at which the share traded in the da#.
C.?.G D%-+ I.)%3+m%.+3 <
>e"t securities =in the form of non3converti"le de"entures! "onds! secured premium notes! (ero
interest "onds! deep discount "onds! floating rate "ond J notes! securitised de"t! pass through
certificates! asset "acked securities! mortgage "acked securities and an# other domestic fi*ed
income securities including structured o"ligations etc.? include! "ut are not limited to A
o >e"t o"ligations of the Eovernment of ndia! State and local Eovernments!
Eovernment 'gencies and statutor# "odies =which ma# or ma# not carr# a state J
central government guarantee?!
o Securities that have "een guaranteed "# Eovernment of ndia and State
Eovernments!
o Securities issued "# 1orporate Entities =Pu"lic J Private sector undertakings?!
)<
o Securities issued "# Pu"lic J Private sector "anks and development financial
institutions.
Mo.%* M'r,%+ I.3+rum%.+3 I.clu0%
o 1ommercial Papers
o 1ommercial "ills
o Treasur# "ills
o Eovernment securities having an une*pired maturit# upto one #ear
o 1all or notice mone#
o 1ertificate of deposit
o Usance "ills
o Permitted securities under a repo J reverse repo agreement
o 'n# other like instruments as ma# "e permitted "# R% J SE% from time to time
nvestments will "e made through secondar# market purchases! initial pu"lic
offers! other pu"lic offers! placements and right offers =including renunciation?
and negotiated deals. The securities could "e listed! unlisted! privatel# placed!
secured J unsecured! rated J unrated of an# maturit#.
The '&1 retains the fle*i"ilit# to invest across all the securities J instruments in de"t and mone#
market.
nvestment in de"t securities will usuall# "e in instruments which have "een assessed as Nhigh
investment gradeN "# at least one credit rating agenc# authori(ed to carr# out such activit# under
the applica"le regulations. n case a de"t instrument is not rated! prior approval of the %oard of
>irectors of Trustee and '&1 will "e o"tained for such an investment. nvestment in de"t
instruments shall generall# have a low risk profile and those in mone# market instruments shall
have an even lower risk profile. The maturit# profile of de"t instruments will "e selected in
accordance with the '&18s view regarding current market conditions! interest rate outlook.
Pursuant to the SE% Regulations! the Scheme shall not make an# investment inA
an# unlisted securit# of an associate or group compan# of the Sponsor; or
)7
an# securit# issued "# wa# of private placement "# an associate or group compan# of the
Sponsor; or
The listed securities of group companies of the Sponsor which is in e*cess of )5P of the
net assets.
The Scheme ma# invest in other schemes managed "# the '&1 or in the schemes of an# other
mutual funds! provided it is in conformit# with the investment o"jectives of the Scheme and in
terms of the prevailing SE% Regulations. 's per the SE% Regulations! no investment
management fees will "e charged for such investments and the aggregate inter Scheme
investment made "# all the schemes of .>B1 &utual Bund or in the schemes of other mutual
funds shall not e*ceed 5P of the net asset value of the .>B1 &utual Bund.

1.'PTER )
)9
REIE/ OB
-TER'TURE
INTRODUCTION
Iarious studies on nvestment pattern C nvestment "ehavior of investors had "een conducted in
foreign countries. .owever! in ndian conte*t! the num"er is @uite few. >epending on the various
issues of investment! the review has "een discussed in "rief as followsA
C1'rl%3 E8HHHF has anal#(ed that the astonishing growth in 'mericans8 stock portfolios in the
1996s has "een a major force "ehind the growth of consumer spending. This article reviews the
relationship "etween stock market movements and consumption. Using various econometric
techni@ues and specifications! the authors find that the propensit# to consume out of aggregate
household wealth has e*hi"ited insta"ilit# over the postwar period. The# also show that the
06
d#namic response of consumption growth to an une*pected change in wealth is e*tremel# short3
lived! impl#ing that forecasts of consumption growth one or more @uarters ahead are not
t#picall# improved "# accounting for changes in e*isting wealth.
B1'r02'; E>@@AF has stated the literature on glo"ali(ation; .e found the pervasiveness of the
west2s perception of the world affect on ndian investors that affects the trends in investor2s
choice. The# are hugel# affected "# the west2s views and so changes in ndian trends occur.
R'./'.'+1'. E>@@AF4 has stated the investor "ehavior from the marketing world and financial
economics has "rought together to the surface an e*citing area for stud# and researchA "ehavioral
finance. The reali(ation that this is a serious su"ject is! however! "arel# dawning. 'nal#sts seem
to treat financial markets as an aggregate of statistical o"servations! technical and fundamental
anal#sis. ' rich view of research waits this sophisticated understanding of how financial markets
are also affected "# the Rfinancial "ehavior2 of investors. /ith the reforms of industrial polic#!
pu"lic sector! financial sector and the man# developments in the ndian mone# market and
capital market! mutual funds that has "ecome an important portal for the small investors! is also
influenced "# their financial "ehavior. .ence! this stud# has made an attempt to e*amine the
related aspects of the fund selection "ehavior of individual investors towards &utual funds! in
the cit# of &um"ai. Brom the researchers and academicians point of view! such a stud# will help
in developing and e*panding knowledge in this field.
S1ro+ri*' E>@@AF conducted a surve# on investor preferences in which he depicted the linkage of
investment with the factor so considered while making investment. .e sa#s GThere are various
factors and their linkage also. These factors help us how to ensure safet#! li@uidit#! capital
appreciation and ta* "enefits along with returns.H
Di;, E>@@IF has conducted )5 #ears of research on the si(e effect in international e@uit# returns.
Since %an(8s =1971? original stud#! numerous papers have appeared on the empirical regularit#
that small firms have higher risk3adjusted stock returns than large firms. ' @uarter of a centur#
after its discover#! the outlook for the si(e effect seems "leak. Let! empirical asset pricing
models that incorporate a factor portfolio mimicking underl#ing economic risks pro*ied "# firm
01
si(e are increasingl# used "# "oth academics and practitioners. 'pplications range from event
studies and mutual fund performance measurement to computing the cost of e@uit# capital. The
aim of this paper is to review the literature on the si(e effect and s#nthesi(e the e*tensive de"ate
on the validit# and persistence of the si(e effect as an empirical phenomenon as well as the
theoretical e*planations for the effect. /e discuss the implications for academic research and
corporate finance and suggest a num"er of avenues for further research.
V'3u0%) E>@@IF anal#(ed the developments in the capital markets and corporate governance in
ndia since the earl# 1996s when the government of ndia adopted the economic li"erali(ation
programme. The legislative changes significantl# altered the theme of ndian 1ompanies 'ct
195:! which is "ased on the 1ompanies 'ct 1947 =U,?. The amendments! such as the
permission for nonvoting shares and "u#"acks! carried the statute awa# from the earlier
G"usiness modelH and towards the 8financial model8 of the >elaware variet#. Simultaneousl#! the
government esta"lished the Securities E*change %oard of ndia =SE%?! patterned on the
Securities and E*change 1ommission of US. Through a num"er of other polic# measures! the
government steered greater investments in the stock market and promoted the stock market as a
central institution in the societ#. The article points out that the reform effort was inspired! at least
in part! "# the government2s reliance on foreign portfolio inflows into the ndian stock market to
fund the countr#2s trade and current account deficits.
Jo1.3o. E>@@JF has stated that Product @ualit# is pro"a"l# under3valued "# firms "ecause there
is little consensus a"out appropriate measures and methods to research @ualit#. The authors
suggest that pu"lished ratings of a product8s @ualit# are a valid source of @ualit# information with
important strategic and financial impact. The authors test this thesis "# an event anal#sis of
a"normal returns to stock prices of firms whose new products are evaluated in the /all Street
$ournal. Sualit# has a strong immediate effect on a"normal returns! which is su"stantiall# higher
than that for other marketing events assessed in prior studies. n dollar terms! these returns
translate into an average gain of Q566 million for firms that got good reviews and an average loss
of Q)66 million for firms that got "ad reviews. &oreover! there are some important as#mmetries.
Rewards to small firms with good reviews of @ualit# are greater than those to large firms with
good reviews. On the other hand! large firms are penali(ed more "# poor reviews of @ualit# than
0)
the# are rewarded for good reviews. The authors discuss the research! managerial! investing! and
polic# implications.
P'+.'i, '.0 31'1 E>@@J? has anal#(ed on the preferences of foreign and domestic institutional
investors in ndian stock markets. Boreign and domestic institutional investors "oth prefer larger!
widel# dispersed firms and do not chase returns. .owever! we and evidence of strong differences
in the "ehavior of foreign and domestic institutional investors.
B1'+.'/'r E>@@HF has anal#(ed of 1orporate Eovernance and e*ternal finance in transition
economies like ndia. The pro"lem in the ndian corporate sector is that of disciplining the
dominant shareholder and protecting the minorit# shareholders. 1learl#! the pro"lem of
corporate governance a"uses "# the dominant shareholder can "e solved onl# "# forces outside
the compan# itself particularl# that of multilateral financial institutions in the economic
development. ndia has relied heavil# on e*ternal finance as their domestic saving rates have
"een much lower than their investment rates. The less promising prospects for the glo"al suppl#
of e*ternal finance the need for an increase in the multilateral financial institutions. ndia "eing a
transition econom# is changing from a centrall# planned econom# to a free market. t is
undergoing economic li"erali(ation! macroeconomic sta"ili(ation where immediate high
inflation is "rought under control! and restructuring and privati(ation in order to create a
financial sector and move from pu"lic to private ownership of resources. These changes often
ma# lead to increased ine@ualit# of incomes and wealth! dramatic inflation and a fall of E>P.
M'*'., E>@@HF has anal#(ed the role of two important forces 3 the regulator and the capital
market as determinant of e*ternal finance in transition economies anal#ses the changing pattern
and future prospectus of e*ternal finance to ndia and reviews the role of e*ternal finance. Under
this framework! the stud# evaluates current ndian corporate governance practices in light of
e*ternal finance.
R';%312'ri '.0 Moor+1* E===F has conducted the stud# and anal#(ed that &utual Bund is a
retail product designed to target small investors! salaried people and others who are intimidated
"# the m#steries of stock market "ut! nevertheless! like to reap the "enefits of stock market
00
investing. 't the retail level! investors are uni@ue and are a highl# heterogeneous group. .ence!
their fundJscheme selection also widel# differs. nvestors demand inter3temporal wealth shifting
as he or she progresses through the life c#cle. This necessitates the 'sset &anagement
1ompanies ='&1s? to understand the fundJscheme
selectionJswitching "ehavior of the investors to design suita"le products to meet the changing
financial needs of the investors. /ith this "ackground a surve# was conducted among 056
&utual Bund nvestors in 16 Ur"an and Semi Ur"an centers to stud# the factors influencing the
fundJscheme selection "ehavior of Retail nvestors. This paper discusses the surve# findings. t is
hoped that it will have some useful managerial implication for the '&1s in their product
designing and marketing.
Brom the a"ove reviews it can "e concluded that man# researches had "een conducted "efore
relating to the investment patterns and the few researchers studied the literature onl# on the "asis
of returns. 'nal#sts treated financial markets as an aggregate of statistical o"servations! technical
and fundamental anal#sis "ut no researches had "een conducted on mpact of glo"al factors on
ndian Econom#. This gap had "een identified so that in this respect present stud# had "een
conduct
CHAPTER A
04
COMPANY
PROFI!E
05
B'c,/rou.0
,arv# 1onsultants -imited was esta"lished in 197) at .#dera"ad. t was esta"lished "# a group
of .#dera"ad3"ased practicing 1hartered 'ccountants. 't initial stage it was ver# small in si(e.
t was started with a capital of Rs. 1!56!666.
n starting it was onl# offering auditing and ta*ation services. -ater! it acts into the Registrar and
Share transfer activities and su"se@uentl# into financial services and other services like Binancial
Product >istri"ution! nvestment 'dvisor# Services! >emat Services! 1orporate Binance!
nsurance etc.
'll along! ,arv#2s strong work ethics and professional "ackground leveraged with nformation
Technolog# ena"led it to deliver @ualit# to the individual. ' decade of commitment! professional
integrit# and vision helped ,arv# achieving a leadership position in its field when it handled
largest num"er of corporate and retail that proved to "e a sound "usiness s#nerg#.
Toda#! ,arv# has access to millions of ndian shareholders! "esides companies! "anks! financial
institutions and regulator# agencies. Over the past one and half decades! ,arv# has evolved as a
verita"le link "etween industr#! finance and people.
n $anuar# 1997! ,arv# "ecame first >epositor# Participant in 'ndhra Pradesh. 'n SO 966)
1ompan#! ,arv#2s commitment to @ualit# and retail reach has made it an ntegrated Binancial
Services 1ompan#.
Toda#! compan# has )06 "ranch offices in 1:4 cities all over the ndia. The compan# adds 5 new
offices ever# month to the compan#2s ever growing national network in ever# nook and corner
of the countr#. The compan# service over 1: million individual investors! 176 corporate and
handle corporate dis"ursements that e*ceed Rs.)566 1rores.
0:
HERE KARVY STAND IN THE MARKETD
,'RIL is a legendar# name in financial services! ,arv#2s credit is defined "# its mission to
succeed! passion for professionalism! e*cellent work ethics and customer centric values.
Toda# ,'RIL is well known as a premier financial services enterprise! offering a "road
spectrum of customi(ed services to its clients! "oth corporate and retail. Services that ,'RIL
constantl# upgrade and improve are "ecause of compan#2s skill in leveraging technolog#. %eing
one of the most techno3savv# organi(ations around helps compan# to deliver even more cost
effective financial solutions in the shortest possi"le time.
/hat "ears ample testimon# to ,arv#2s success is the faith reposed in compan# "# valued
investors and customers! all across the countr#. ndeed! with ,arv#2s wide network touching
ever# corner of the countr#! even the most remote investor can easil# access ,arv#2s services
and "enefit from compan#2s e*pert advice.
KARVY "ROUP
,arv# 1onsultants -imited
,arv# Securities -imited
,arv# nvestor Services -imited
,arv# Stock "roking -imited
,arv# 1omputer Shares Pvt. -td.
0<
Bo'r0 of Dir%c+or3
K'r)* Co.3ul+'.+3 !imi+%0
Parthasarath# 1
Lugandhar &
Ramakrishna & S
Prasad I Potluri
Ro"ert Ei"son
Sanja# ,umar >hir
R Sh#amsunder
TTa"le1A %O>s of ,arv# 1onsultants -imitedU

K'r)* I.)%3+or S%r)ic%3 !imi+%0
Parthasarath# 1
Lugandhar &
Ramakrishna & S
TTa"le)A %O>s of ,arv# nvestor Services -imitedU
K'r)* S%curi+i%3 !imi+%0
07
Parthasarath# 1
Lugandhar &
Ramakrishna & S
'ja# ,umar ,
/illiam Samuel
+icholas Tull#
TTa"le0A %O>s of ,arv# Securities -imitedU
K'r)* S+oc, Bro,i./ !imi+%0
Parthasarath# 1
Lugandhar &
Ramakrishna & S
'ja# ,umar ,
,utum"a Rao I
/illiam Samuel
+icholas Tull#
TTa"le4A %O>s of ,arv# Stock %roking -imitedU
Mi33io. S+'+%m%.+ of KK'r)*L
'n organi(ation e*ists to accomplish something or achieve something. The mission statement
indicates what an organi(ation wants to achieve. The mission statement ma# "e changed
periodicall# to take advantage of new opportunities or respond to new market conditions.
,arv#2s mission statement is #To Bri./ I.0u3+r*4 Fi.'.c% '.0 P%o&l% +o/%+1%r.$
09
,arv# is work as intermediar# "etween industr# and people. ,arv# work as investment advisor
and helps people to invest their mone# same wa# ,arv# helps industr# in achieving finance from
people "# issuing shares! de"entures! "onds! mutual funds! fi*ed deposits etc.
1ompan#2s mission statement is clear and thoughtful which guide geographicall# dispersed
emplo#ees to work independentl# #et collectivel# towards achieving the organi(ation2s goals.
Vi3io. of K'r)*
1ompan#2s vision is cr#stal clear and mind frame ver# directed. #To -% &io.%%ri./ fi.'.ci'l
3%r)ic%3 com&'.*. A.0 co.+i.u% +o /ro2 '+ ' 1%'l+1* &'c%4 *%'r 'f+%r *%'r4 0%c'0% 'f+%r
0%c'0%.$ 1ompan#2s fora# into T3ena"led services and internet "usiness has provided an
opportunit# to e*plore new frontiers and "usiness solutions. To "uild a corporate that sets
"enchmarks for others to follow.
B%1i.0 +1% Pic+ur%< 1'+ Cu3+om%r3 m'++%r for KARVYD
The underl#ing picture forming answer for a"ove @uestion is given "elow.
TBig.1 1ompetitive 'dvantage of ,arv#U
Ever# #ear with this picture keeping in mind R,arv# accelerate with Recover#! Revival and
Reappearance.2
,arv# has started )664 on a strong note with the reali(ation to signal some of the challenges it
faced previous #ear. n a competitive market and a "randed "usiness! ,arv# need to carefull#
manage itself to avoid down trading or "rand shifts "# consumers.
46
Bor ,arv#! $amnagar "ranch )660 was trul# e*hilarating "ecause ofA
Successful implementation of a carefull# crafted strateg#.
E*cellence in e*ecution.
mmense learning ena"ling to set up a launch pad for revitali(ing itself.
Some competitive advantages are long lasting. These are intangi"le! difficult to replicate and
thus more sustaina"le. ,arv# has focused on some of these to gain competitive advantages.
There areA
/inning culture and a desire to e*cel in ever#thing ,arv# do.
Strong meaningful relationships with 1ustomers along with Strategic
Partners in which ,arv# operate and a"ove all! its own staff.
,arv# value and carefull# nurture relationships with customers. ,arv# trul# "elieve that more
than technological prowess and "usiness process innovations! it is the Rfocus on relationships2
which has "een the corner stone of satisf#ing and successful presence in ndia over man# #ears.
This has "een possi"le with deep insight of consumer "ehavior as well as market demand drivers!
understanding of the arena where to operate and @ualit# e*ecution M all thanks to a Rgreater team2
that makes this happen.
,arv#2s customers consider themselves part of ,arv# famil# and share their e*periences and
dreams with other customers and thus ,arv# "ecomes successful not onl# in relating customers
"ut also gains new customers from satisfied prevailing customers.
,arv# want to create a strong emotional "ond with new customers promoted "# prevailing
customers.
K'r)* V'lu%3<
ntegrit#
Responsi"ilit#
Relia"ilit#
41
Unit#
Understanding
E*cellence
1onfidentialit#
,arv# has ade@uate internal control s#stems and procedures commensurate with the si(e nature
of its "usiness. These s#stem and procedures provide reasona"le assurance of maintenance of
proper accounting records! relia"ilit# of financial information! protection of resources and
safeguarding of assets against unauthori(ed use.
KARVY SERVICES M AN OVERVIE
1. Stock "roking
). >emat services
0. nvestment product distri"ution
4. nvestment advisor# services
5. 1orporate finance C &erchant "anking
:. nsurance
<. &utual fund services
7. T ena"led services
9. Registrars C Transfer agents
16. -oans
8.S+oc, Bro,i./<
,'RIL is working as 1apital &arket ntermediaries. Stock"rokers are regulated "# SE%
TStock3"rokers and Su"3"rokersU Regulations! 199). The stock"roker is a mem"er of the stock
e*change. Stock"rokers are the intermediaries who are allowed to trade in securities on the
4)
e*change of which the# are mem"ers. The# "u# and sell on their own "ehalf as well as on "ehalf
of their clients.
Stock"rokers e*pand their "usiness "# engaging su"3"roker. Su"3"rokers mean Gan# person not
"eing a mem"er of a stock e*change who acts on "ehalf of a stock "roker as an agent or
otherwise for assisting the investors in "u#ing! selling or dealing in securities through such
stock3"rokers.H
>.D%m'+ S%r)ic%3<
,arv# is a depositor# participant with the +ational Securities >epositor# -imited =+S>-? for
trading and settlement of demateriali(ed shares.
>epositor# Participants =>Ps? are descri"ed as an agent of the depositor#. The# are
intermediaries "etween the depositor# and the investors. The relationship "etween the >Ps and
the depositor# is governed "# an agreement made "etween the two under >epositories 'ct.
' >P can offer depositor#3related services onl# after o"taining a certificate of registration from
SE%.
Since ,arv# is also in the "roking "usiness! investors who use ,arv#2s depositor# services get a
dual "enefit. The# can use ,arv#2s "rokerage services to e*ecute transactions and ,arv#2s
depositor# services to settle them.
0. I.)%3+m%.+ Pro0uc+3 Di3+ri-u+io.<
1ompan# is also concern with the distri"ution of investment products like
=a?. Bi*ed >eposit
="?. %onds
=c?. PO
E'F. Fi7%0 D%&o3i+<
40
,'RIL is dealer of 04 fi*ed deposits of various t#pes which includes fi*ed deposits of Pu"lic
Sector! +on %anking Binance 1ompanies! .ousing Binance 1ompanies and &anufacturing
1ompanies.
1ompan# is dealer of following Bi*ed >eposits
PUB!IC SECTOR
Sl. No. Com&'.* N'm%
1 .U>1O
) Sardar Sarovar +armada +igam -td.
0 Tamil+adu Power Binance 1orporation -td.
4 +TP1
TTa"le5A Pu"lic Sector B> with which ,arv# dealsU
NON BANKIN" FINANCE COMPANIES
1 'shok -e#land Binance -td.
) %ajaj 'uto Binance -td.
0 %irla .ome Binance -td.
4 1holamandalam nvestment C Binance 1o. -td.
5 Escorts Binance -td.
: Birst -easing 1ompan# of ndia -td.
< >% Suvidha
7 +icco Uco 'lliance 1redit -td.
TTa"le:A B> of +on %anking Binance 1ompanies with which ,arv# dealsU
HOUSIN" FINANCE COMPANIES
1 1an Bin .omes -td.
) >ewan .ousing Binance 1orporation -td.
0 Eruh Binance -td.
4 .>B1 -td.
44
5 P+% .ousing Binance -td.
: Sundaram .ome Binance -td.
TTa"le<A B> of .ousing Binance 1ompanies with which ,arv# dealsU
MANUFACTURIN" COMPANIES
1 ' P Paper &ills -td.
) 'mtek ndia -td.
0 'tul -td.
4 %allarpur ndustries -td.
5 1ham"al Bertili(ers C 1hemicals -td.
: Escort -td.
< Ereaves -td.
7 Eujarat 'lkalies C 1hemicals -td.
9 ndian E*press
16 nd3Swift -td.
11 $, ndustries -td.
1) $indal Steel C Power -td.
10 Sound 1raft ndustries -td.
14 Supreme ndustries -td.
15 Vuari ndustries -td.
TTa"le7A B> of &anufacturing 1ompanies with which ,arv# dealsU
E-F. Bo.03<
,arv# is dealer of following "onds
R% Saving %onds
+.%
RE1
45
EcF. IPO<
1ompan# is also provides services related to nitial Pu"lic Offer of compan#. 1ompan# provides
stationar# at the time of PO as well as provides information to investors regarding PO and
solves their @ueries.
C.I.)%3+m%.+ A0)i3or* S%r)ic%3<
This division provides portfolio management services to high net3worth individuals and
corporate. The e*pertise of ,arv# in research and stock "roking gives it the right perspective to
provide investment advisor# services. 1ompan# provides advisor# services to its clients.
Binancial goal of each individual investor varies according to his dream! am"ition and famil#
si(e and future financial planning for the children C old age pension for self and wife so does the
pathwa# to achieve it. ,arv# appl# the principles of Binancial Planning as "oth science C art! it
understands the time hori(on! risk "earing capacit# and investment goals of investors keeping in
mind their ps#che and financial needs. %ased upon this ,arv# helps individual investors to plan
their entire life up to retirement! Ta*es! nsurance needs and other important personal financial
goals. t designs portfolio for investor to invest their saving in various financial products like
shares! "onds! de"entures! mutual funds! fi*ed deposits! insurance etc.! 1ompan# design
portfolio "# considering following factors.
nvestor2s re@uirement of getting mone# "ack!
nvestor2s willingness to take risk!
nvestor2s ta* planning etc.
?.Cor&or'+% fi.'.c% B M%rc1'.+ -'.,i./<
1orporate finance is the financial activit# of corporation. t deals with the firm8s operations with
regard to investing and financing. t concerned with how firms raise capital and the
conse@uences of alternative methods of raising capital. Birm2s capital can "e raised "# raising
loans! issuing shares! and ac@uiring or merging with other "usinesses "# pu"lic or private
companies.
&erchant "anking is a financial intermediation that matches entities that need capital and those
that have capital. .ence the# facilitate the flow of capital in the market.
4:
,arv# enjo#s SE% categor# =? authori(ation for &erchant %anking. ,arv# offers the full
spectrum of &erchant %anking Services! "eginning from identif#ing the "est time for an issue to
final stage of marketing it! to harvest unparalleled success.
's a merchant "anker ,arv# offer following servicesA
ssue management
nstrument designing
Pricing of the issue
Registration process for the issue of shares
&arketing efforts
Binal allotment to investors
-isting details on stock e*changes
-oan s#ndication
-ease financing
1orporate advisor# services
Underwriting
Portfolio management
G. I.3ur'.c%<
,arv# is also dealer of man# private life insurance companies. 't $amnagar "ranch! compan# is
associated with dealing of following companies.
11 Prudential -ife nsurance
.>B1 -ife nsurance
T'T' 'E -ife nsurance
I. Mu+u'l Fu.0 S%r)ic%3<
Since its inception in 197)! ,arv# has demonstrated a dedication coupled with d#namism that
has inspired trust from various segments M corporate! government "odies and individuals. ,arv#
4<
has since "een performing a pivotal role as the intermediar# M the interface M "etween these
pla#ers.
/ith &utual Bunds emerging as a distinct asset class! ,arv# has made a strategic choice to
leverage the power of latest technolog# to provide a cutting edge to its services. ,arv#! toda#!
service nearl# 76P of the asset management companies ='&1s? across an e*tensive network of
service centers with assets under service in e*cess of Rs.16!666 crores.
,arv#8s a"ilit# to mass customi(e and offer a diverse range of products for a diverse range of
customers has helped mutual fund companies to uni@uel# position themselves in the market
place. These diverse range of services cut across multiple deliver# channels M service centers!
we"! mo"ile phones! call center M has "rought home the "enefits of technolog# to investors!
distri"utors! and the mutual funds.
Eoing forward! ,arv# shall strive to create new products and services! which would address the
needs of the end customer. 1ompan#2s single minded focus in delivering products for customers
has given it the distinguished position of "eing the preferred provider of financial services in the
countr#.
47
!i3+ of Mu+u'l Fu.0 Cli%.+3 of KARVY<
TTa"le9A -ist of &B 1ompanies with which ,arv# dealsU
J. I.com% T'7 %.'-l%0 3%r)ic%3<
,arv# has "een started this service since &arch! )664. ,arv# is work as T+ Bacilitation 1entre
it provides following T ena"led services.
a. >istri"ution of P'+ 1ard.
". >istri"ution of T'+ 1ard.
c. Services related to e3T>S.
49
1 'lliance &utual Bund
) %irla &utual Bund
0 %ank of %aroda &utual Bund
4 1an %ank &utual Bund
5 1hola &utual Bund
: >eutsche &utual Bund
< >SP &errill -#nch &utual Bund
7 Branklin Templeton nvestments
9 E1 &utual Bund
16 .>B1 &utual Bund
11 .S%1 &utual Bund
1) - C BS &utual Bund
10 $& &utual Bund
14 ,otak &utual Bund
15 -1 &utual Bund
1: Punja" +ational %ank &utual Bund
1< Prudential 11 &utual Bund
17 Principal &utual Bund
19 Reliance &utual Bund
)6 State %ank of ndia &utual Bund
)1 Standard 1hartered &utual Bund
)) Sundaram &utual Bund
)0 SU+ BC1 &utual Bund
)4 Tata &utual Bund
,arv# work as an intermediar# "etween +S>- and T pa#ers. ,arv# provides various form for
different T ena"led services and guide people to fill that forms. t also solves @ueries of the ta*
pa#ers. t also distri"utes P'+ and T'+ card to the ta* pa#ers.
TIN O)%r)i%2
+ational Securities >epositor# -td. =+S>-? has esta"lished a nationwide Ta* nformation
+etwork =T+? on "ehalf of the ncome Ta* >epartment =T>?. This is designed to make the ta*
administration more effective! furnishing of returns convenient! reduce compliance cost and
"ring greater transparenc#.
/hile +S>- will "e the primar# agenc# responsi"le for the design! implementation and
maintenance of T+ as per the re@uirements of T>! other agencies will also pla# ke# roles in the
T+ s#stem.
,arv# has esta"lished infrastructure re@uired to provide T ena"led services so! ,arv# provides
T+ facilitation centers all over ndia on "ehalf of +S>-. %esides ,arv# following companies
can also work as intermediar# "etween +S>- and customers.
H. R%/i3+r'r3 B Tr'.3f%r '/%.+3<
n 1975! ,arv# entered the Registrar and Share Transfer %usiness to create a market niche in the
competitive field of financial services. n 1994395! it reached a milestone when it processed 164
Pu"lic ssues constituting 4: per cent market share. +ow in its second decade of
e*istence! ,arv# is the leader in the industr#A n an opinion poll conducted "# an independent
market research agenc# 3 &'RE! ,arv# has "een rated as ndia2s &ost 'dmired Registrar on
various parametersA 3
Overall E*cellence.
.andling of Iolumes
Timel# >ispatch
Sualit# &anagement and Technological Up gradation.
56
' SE% 1ategor# 1 Registrar! So far! ,arv# has handled over :<5 SSUES as Registrars to
pu"lic issues processed over 5) million applications and is servicing over 1: million investors
from various locations spread over )65 clients.
8@.!o'.<
,arv# has recentl# started this service at selected "ranches of metro cities. This service has not
"een started in Saurashtra3,ucch region. ,arv# provides loans for following.
Iehicle -oan
.ome -oan
Personal -oan
51
MARKETIN" STRATE"Y OF KARVY
M'r,%+ Po3i+io.i./<
&arket positioning statements of ,arv# are At Karvy we give you single window service and
e also ensure your comfort!
So! ,arv# focus on the consumers who prefer almost all investment activities at same place "#
providing num"er of various financial services. 't ,arv# a person can purchase or sell
shares! de"entures etc. and at the same place also >emat it. ,arv# also provides other
investment option to the same person at same place like &utual Bund! nsurance! Bi*ed
>eposit! and %onds etc. and help the person in designing his portfolio. %# this wa# ,arv#
provides comfort to its customers.
,arv# is also positioned according to "ies and #rout. ,arv# is promoted as a no. 1 investment
product distri"utor and R C T agent of ndia.
T'r/%+ M'r,%+<
,arv# uses demographic segmentation strateg# and segment people "ased on their occupation.
,arv# uses selective speciali$ation strateg# for market targeting. Target person for the ,arv#
Stock %roking and ,arv# nvestment Service are persons who can work as su"3"roker for the
companies. 1ompanies focus on 'dvisors of nsurance and post office! Ta* consultants and 1's
for making su"3"roker.
5)
M'r,%+i./ c1'..%l S*3+%m<
,arv# uses one level marketing channel for investment product distri"ution. Su"3"rokers work as
intermediar# "etween consumer and compan#. 1ompan# has "oth forward and "ackward flow of
activit# through channel. 1ompan# distri"utes stationer#! "rokerage! and information forward to
its su"3"roker. The su"3"rokers send filled forms! @ueries! amount of investment etc. "ack to the
compan#.
PROJECT C1'..%l M%m-%r3<
,arv# provides PRO$E1T to the su"3"rokers "ecause the# will "e viewed as the compan# "# the
investors. The e*ecutives of ,arv# e*plain various new schemes of investment to the su"3
"rokers with its o"jective! risk factors and e*pected return. 1ompan# also periodicall# arrange
seminar to guide su"3"rokers.
A0)%r+i3i./ '.0 Promo+io.<
The o"jective of advertising of ,arv# is to create awareness a"out services of ,arv# among
investors and su"3"rokers and increase su"3"rokers of ,arv#.
1ompan# doesn2t give advertisement in media like TI! +ewspapers! and &aga(ines etc.
,arv#2s advertisement is made indirectl# "# the companies associate with it. ,arv# is R C T
agent of around <66 companies. The# pu"lish name! address and logo of ,arv# on their annual
report.
,arv# also pu"lish its weekl# Stock &arket +ewsletter R,arv# %a(aar %aatein2 and monthl#
maga(ine RThe Binapolis2 to guide investors and su"3"rokers a"out market.
50
HR PO!ICY OF KARVY
,arv#2s .R >epartment is located at .#dera"ad.
R%crui+m%.+ '.0 S%l%c+io. Polic*<
The upper level mem"ers like (onal managers! regional managers! "ranch managers and senior
e*ecutives are recruited "# pu"lishing recruitment advertisement in leading national level
newspaper. The @ualified applicant are then called for interview and selected.
The regional manager has authorit# to select lower level emplo#ee like peon! marketing
e*ecutives! accountant etc. "# approval of (onal manager.
PROJECT '.0 D%)%lo&m%.+<
1ontinuous PRO$E1T and upgrading technical! "ehavioral and managerial skills is a wa# of life
in ,arv#. ,arv# encourages emplo#ees to hone their skills regularl# to ena"le them to face the
challenges of the changing re@uirements of customers that fit market up and down.
PRO$E1T needs anal#sis is done on a regular "asis and s#stematic methodologies are ensured
that skills and capa"ilities of all emplo#ees are constantl# upgraded to ena"le them to perform in
the challenging work environment.
+ew emplo#ee has given PRO$E1T under e*perienced emplo#ee. The new emplo#ee work
under e*perience emplo#ee and o"serve his all activities. /hen compan# emplo#s new
technolog# or there is an# change in the working of compan# the PRO$E1T program is
arranged.
Em&lo*%% Mo+i)'+io.<
,arv#2s emplo#ees are highl# empowered. The# don2t have to report an# person of the same
"ranch "ut the# report upper level "ranch. E.e. &arketing e*ecutive of $amnagar "ranch directl#
reports Senior &arketing e*ecutive of %aroda (onal office.
f particular "ranch earn certain profit then ,arv# gives them special incentives. E.g. last #ear
,arv# had arranged two da#s tour of >iv for their emplo#ees of Rajkot! $amnagar! $unagadh and
%havnagar "ranch which was totall# free of cost. This also helps in maintaining co3operation
"etween emplo#ees.
54
Nu'li+* Polic* Of K'r)*<
To achieve and retain leadership! ,arv# shall aim for complete customer satisfaction! "#
com"ining its human and technological resources! to provide superior @ualit# financial services.
n the process! ,arv# will strive to e*ceed 1ustomer2s e*pectations.
Nu'li+* O-;%c+i)%3 of K'r)*
%uild in3house processes that will ensure transparent and harmonious
relationships with its clients and investors to provide high @ualit# of services.
Esta"lish a partner relationship with its investor service agents and
vendors that will help in keeping up its commitments to the customers.
Provide high @ualit# of work life for all its emplo#ees and e@uip them with
ade@uate knowledge C skills so as to respond to customer8s needs.
1ontinue to uphold the values of honest# C integrit# and strive to
esta"lish unparalleled standards in "usiness ethics.
Use state3of3the art information technolog# in developing new and
innovative financial products and services to meet the changing needs of investors and
clients.
Strive to "e a relia"le source of value3added financial products and
services and constantl# guide the individuals and institutions in making a judicious
choice of same.
Strive to keep all stake3holders =shareholders! clients! investors!
emplo#ees! suppliers and regulator# authorities? proud and satisfied.
Ac1i%)%m%.+3 of K'r)*<
-argest mo"ili(er of funds as per PR&E >'T'%'SE
Birst SO 3 966) 1ertified Registrar in ndia
' 1ategor#3 &erchant "anker
' 1ategor#3 Registrar to Pu"lic ssues
Ranked as NThe &ost 'dmired RegistrarH "# &'RE
55
.andled the largest3 ever Pu"lic ssue 3 >%
Strategic tie3up with $ardine Bleming ndia Securities -td
.andled over 566 Pu"lic issues as Registrars
.andling the Reliance 'ccount which accounts for nearl# 16 million
account holders
Birst >epositor# Participant from 'ndhra Pradesh
SOT ANA!YSIS OF KARVY
S+r%./+13<
Emplo#ees are highl# empowered.
Strong 1ommunication +etwork.
Eood co3operation "etween emplo#ees.
+um"er 1 Registrar and Transfer agent in ndia.
+um"er 1 dealer of nvestment Products in ndia.
%',.%33%3<
.igh Emplo#ee Turnover.
O&&or+u.i+*<
Erowth rate of mutual fund industr# is 46 to 56P during last #ear and it
e*pected that this rate will "e maintained in future also.
&arketing at rural and semi3ur"an areas.
T1r%'+3<
ncreasing num"er of local pla#ers.
Past image of &utual Bund.
5:

CHAPTER C
NEED4SCOPE AND
OBJECTIVE OF
THE STUDY
5<
NEED4 SCOPE AND OBJECTIVES OF THE STUDY
C.8 NEED OF THE STUDY
The need of the stud# was to fill the gap that was identified in the previous researches. The
researchers conducted earlier la# emphasis on the working of ndian Stock &arket. 1onsidering
the ample importance of this aspect! the present stud# was conducted to know the ndian Stock
&arket C various options availa"le in the Stock &arket to invest C stud# the "ehavior of
investors and determine their awareness level regarding various investment avenues availa"le in
stock market.
C.> SCOPE OF THE STUDY
The scope of the stud# was limited to 1handigarh cit#.
C.A OBJECTIVES OF THE STUDY
The stud# has "een undertaken in order to achieve the following o"jectivesA
To take an overview of the ndian Stock &arket and encapsulate the various investment
avenues availa"le.
To know various options availa"le in the 1apital &arket to invest.
To know investor2s perception regarding investment in stock market
To stud# the investment "ehavior of investors and the factors that affects their investment
decision.
To stud# the pro"lems of investors and the reasons for not investing in financial instruments.
To know the satisfaction level of investors regarding return of different investment avenues.
57

CHAPTER ?
RESEARCH
METHODO!O"Y
59
RESEARCH METHODO!O"Y
Research &ethodolog# is a wa# to s#stematicall# solve the research pro"lem. The Research
&ethodolog# includes the various methods and techni@ues for conducting a research. Research is
an art of scientific investigation. n other word research is a scientific and s#stematic search for
pertinent information on a specific topic. The logic "ehind taking research methodolog# into
consideration is that one can have knowledge a"out the method and procedure adopted for
achievement of o"jective of the project.
RESEARCH DESI"N<
Research design is the conceptual structure within which research is conducted. t
constitutes the "lueprint for collection! measurement and anal#sis of data was a descriptive
research. >escriptive research involves collecting numerical through self3reports collected!
through @uestionnaires or interviews =person or phone?! or through o"servation. Bor present
stud#! the research was descriptive and conclusion oriented.
SAMP!IN" DESI"N<
U.i)%r3%< The Universe is most commonl# defined as ever#thing that ph#sicall# e*istsA the
entiret# of space and time! all forms of matter! energ# and momentum! and the ph#sical laws and
constants that govern them. 'll those persons who make investment.
T1%or%+ic'l U.i)%r3%< t included investors make investment in all over world.
Acc%33i-l% U.i)%r3%< t included investors make investment in ndian Stock &arket.
S'm&li./ u.i+ M The target population must "e defined that has to "e sampled. The sampling
unit of research included students and professionals residing in 1handigarh cit#.
S'm&l% 3iO% M This refers to num"er of respondents to "e selected from the universe to constitute
a sample. The sample si(e of 56 nvestors was taken.
S'm&li./ T%c1.i5u% M 1onvenience Sampling was used to select the sample. 1onvenient
sampling is a non pro"a"ilit# sampling techni@ue that attempts to o"tain a sample of convenient
elements .n case of convenience sampling! the selection of sample depends upon the discretion
:6
of the interviewer. n this project! Suestionnaire &ethod was used for the collecting the data.
/ith the help of this method of collecting data! a sample surve# was conducted.

DATA CO!!ECTION AND ANA!YSIS<
D'+' Coll%c+io.
nformation has "een collected from "oth Primar# and Secondar# >ata.
S%co.0'r* 3ourc%3= Secondar# data are those which have alread# "een collected "#
someone else and which alread# had "een passed through the statistical process.
The secondar# data was collected through we" sites! "ooks and maga(ines.
Prim'r* 3ourc%3= Primar# data are those which are fresh and are collected for the
first time! and thus happen to "e original in character. The primar# data was
collected through direct personal interviews =open ended and close ended
@uestionnaires?
Tool3 of Pr%3%.+'+io. B A.'l*3i3<
To anal#(e the data o"tained with the help of @uestionnaire! following tools were used.
8. !i,%r+ 3c'l%< These consist of a num"er of statements which e*press either a
Bavora"le or unfavora"le attitude towards the given o"ject to which the respondents are
asked to react. The respondent responds to in terms of several degrees of satisfaction or
dissatisfaction.
>. P%rc%.+'/%4 B'r "r'&13 '.0 Pi% C1'r+3< These tools were used for anal#sis
of data
!IMITATIONS OF STUDY
t is said! G/hat is worth doing is worth doing "estH. n other words a person should aim at
perfection. .owever in real life this is not alwa#s possi"le. .uman have to work within the
limitation set "# the nature and societ#. That is to sa# even though ever# possi"le effort has "een
made to make this project report authentic and comprehensive however man# constraints were
also at pla#. The major limitations of the stud# areA3
:1
>ue to paucit# of time and resources a countr#wide surve# was not possi"le.
.ence onl# 1handigarh cit# has "een taken for the stud#.
Since a smaller sample was chosen so it ma# not "e a true representative of the
population under stud#.
The possi"ilit# of the respondent2s responses "eing "iased cannot "e ruled out.
&ost of the stud# was restricted to nternet and pu"lished data "ecause of the non
availa"ilit# of primar# data.
The information given "# the respondents might "e "iased "ecause some of them
might not "e interested to given correct information..
Some of the respondents could not answer the @uestions due to lack of knowledge.
Some of the respondents of the surve# were unwilling to share information.
:)
CHAPTER G
DATA
INTERPRETATION
AND ANA!YSIS
:0
DATA ANA!YSIS AND INTERPREATATION
G.@ D%mo/r'&1ic Profil% of i.)%3+or3
T'-l% G.@< D%mo/r'&1ic Profil% of i.)%3+or3
D%mo/r'&1ic3 No. of r%3&o.0%.+3 P%rc%.+'/% of r%3&o.0%.+3
A/%
-ess than )6 #ears 6 6
)6346 )6 46
Ereater than 46 06 :6
Total 56 Total 56
Nu'lific'+io.
&atric 6 6
Under Eraduate )5 56
Post Eraduate )5 56

Total 56 Total 166
Occu&'+io.
Service 19 07
Profession : 1)
%usiness 15 06
Student 16 )6

Total 56 Total 166
I.com% E&%r mo.+1F
-ess than Rs.)6666
Rs.)6666346666 16 )6
Ereater than 46666 )5 56
15 06
Total 166 Total 166
A.'l*3i3 B I.+%r&r%+'+io.< t was found that the major population of investors was greater than
46#rs and :6P was of )6346 #rs. 'nd 56P respondents were under graduate and 56P were post
graduate. 05P of respondents were doing service. 'nd majorit# of respondents i.e. 56P earn
income "etween Rs.)6666346666 per month. t means majorit# of investors was greater than 46
#ears having income in "etween Rs )6666346666.
:4
S+'+%m%.+ 8. To ,.o2 21%+1%r r%3&o.0%.+3 i.)%3+.
T'-l% No. G.8 To ,.o2 21%+1%r r%3&o.0%.+3 i.)%3+.
I.)%3+m%.+ D%ci3io. No. of R%3&o.0%.+3 P%rc%.+'/% of R%3&o.0%.+3
Les 45 96
+o 5 16
Total 56 166
Fi/ur% No. G.8 To ,.o2 21%+1%r r%3&o.0%.+3 i.)%3+.
A.'l*3i3 B I.+%r&r%+'+io.<
Brom the surve# it was found that 96P respondents invest in the stock market and 16P who
were non3investors.
:5
S+'+%m%.+ >. A2'r%.%33 r%/'r0i./ +*&%3 of I.)%3+m%.+ I.3+rum%.+3
T'-l% No. G.> T*&% of i.)%3+m%.+ o&+io. +1% &%r3o. i3 '2'r% of
T*&%3 of I.)%3+m%.+
I.3+rum%.+3
No. of R%3&o.0%.+3 P%rc%.+'/% of R%3&o.0%.+3
Shares 15 06P
&utual Bunds )0 4:P
>e"entures 5 16P
%onds 5 16P
>erivatives ) 4P
Total 56 166P
Fi/ur% No.G.> T*&% of i.)%3+m%.+ o&+io. +1% &%r3o. i3 '2'r% of
A.'l*3i3 B I.+%r&r%+'+io. '"ove pie3chart shows that 45P investors were aware of the mutual
fund! )5P investors were aware of shares! 15P investors were aware of de"entures! 16P
investors were "onds. t means majorit# of persons aware a"out mutual fund whereas shares and
de"entures were of second importance.
::
S+'+%m%.+ A .To ,.o2 +1% +*&% of i.)%3+m%.+ o&+io. +1% &%r3o. 1'3 -%%. i.)%3+i./
T'-l% No.G.A T*&% of i.)%3+m%.+ o&+io. +1% &%r3o. 1'3 -%%. i.)%3+i./
I.)%3+m%.+ 'l+%r.'+i)% No. of R%3&o.0%.+3 P%rc%.+'/% of R%3&o.0%.+3
Shares 15 06P
&utual Bunds 15 06P
>e"entures 16 )6P
%onds 5 16P
>erivatives 5 16P
Total 56 166P
Fi/ur% No.G.A T*&% of i.)%3+m%.+ o&+io. +1% &%r3o. 1'3 -%%. i.)%3+i./
A.'l*3i3 B I.+%r&r%+'+io.<
Brom the surve# it was found that 06P respondents invest in &utual funds! )5P invest in Shares
and )6P invest in >e"entures. Thus! it can "e stated that ma*imum people invest in &utual
Bunds whereas shares are having )
nd
importance.
:<
S+'+%m%.+ C .To ,.o2 +1% r'+%3 '+ 21ic1 +1% i.)%3+m%.+ /ro2
T'-l% No.G.C T1% r'+%3 '+ 21ic1 +1% i.)%3+m%.+ /ro2
I.)%3+m%.+ "ro2+1 R'+% No. of R%3&o.0%.+3 P%rc%.+'/% of R%3&o.0%.+3
Steadil# 6 6P
't an average rate 5 16P
't fast rate 45 96P
Total 56 166P

A.'l*3i3 B I.+%r&r%+'+io.<
Brom the surve# it was found that 96P respondents wants their investment grow at fast rate
whereas onl# 16P respondents were in the favour of investment growth at average rate.
:7
S+'+%m%.+ ?. To ,.o2 +1% fr%5u%.c* of i.)%3+m%.+ -* +1% R%3&o.0%.+3.
T'-l% No. G.? Fr%5u%.c* of i.)%3+m%.+
Fr%5u%.c* of I.)%3+m%.+ No. of R%3&o.0%.+3 P%rc%.+'/% of R%3&o.0%.+3
>ail# 6 6P
/eekl# 16 )6P
&onthl# )4 47P
Learl# 1: 0)P
Total 56 166P

Fi/ur% No.G.? Fr%5u%.c* of I.)%3+m%.+
A.'l*3i3 B I.+%r&r%+'+io.<
Brom the a"ove ta"le C chart it was found that 45 respondents invest monthl#! 05 invest #earl#
and there were )6 respondents who invest dail#. Thus! it can "e stated that majorit# of the
investors invest monthl# in stock market.
:9
S+'+%m%.+ G .To ,.o2 +1% &%rc%.+'/% of i.com% +1'+ r%3&o.0%.+ i.)%3+ '..u'll*
T'-l% No. G.G T1% &%rc%.+'/% of i.com% +1'+ r%3&o.0%.+ i.)%3+ '..u'll*
A..u'l I.com% I.)%3+%0 No. of R%3&o.0%.+3 P%rc%.+'/% of R%3&o.0%.+3
Up to 16P < 14P
16315P 11 ))P
153)6P )6 46P
&ore than )6P 1) )4P
Total 56 166P
Fi/ur% No. G.G T1% &%rc%.+'/% of i.com% +1'+ r%3&o.0%.+ i.)%3+ '..u'll*
A.'l*3i3 B I.+%r&r%+'+io.<
Brom the a"ove ta"le C chart! it was found that 46 respondents invest 153)6P of their annual
income! )4 respondents invest more than )6P of their annual income! )) respondents invest up
to 16315P of their income and 14 respondents invest up to 16P of their income in different
investment avenues. Thus! it can "e concluded that majorit# of investors invest 16P to )6P of
their monthl# income.
<6
S+'+%m%.+ I. To ,.o2 +1% r%3&o.0%.+L3 i.flu%.c% o. I.)%3+m%.+ 0%ci3io..
T'-l% No.G.I T1% r%3&o.0%.+L3 i.flu%.c% o. I.)%3+m%.+ 0%ci3io.
Sourc%3 No. of R%3&o.0%.+3 P%rc%.+'/% of R%3&o.0%.+3
Self )4 47P
Briends C Relatives 16 )6P
Service providers C consultants : 1)P
+ewspapers C 'dvertisement 5 16P
'gents 0 :P
/orkshops C Seminars ) 4P
Total 56 166P
Fi/ur% No.G.I T1% r%3&o.0%.+L3 i.flu%.c% o. I.)%3+m%.+ 0%ci3io.
A.'l*3i3 B I.+%r&r%+'+io.<
Brom the a"ove ta"le C chart! it was found that multiple aspects for investing influenced
respondents.47P respondents take investment decision on the "asis of their personal evaluation
where as )6P respondents invest "ecause of influence of friends C relatives! the consultant2s
influences 1)P respondent and the advertisement influences 16P respondents. t can "e stated
that majorit# of the persons are influenced "# their own while opting for investment tool.
<1
S+'+%m%.+ J. To K.o2 T1% F'c+or3 T1'+ %r% Co.3i0%r%0 1il% I.)%3+i./.
T'-l% No. G.J T1% F'c+or3 T1'+ %r% Co.3i0%r%0 1il% I.)%3+i./
I.)%3+m%.+ F'c+or3 No. of R%3&o.0%.+3 P%rc%.+'/% of R%3&o.0%.+3
Return on investment 15 06P
Ta* "enefits 9 17P
1apital appreciation < 15P
&aturit# period 0 :P
Risk : 1)P
Safet# of principal 0 :P
-i@uidit# < 14P
Total 56 166P
Fi/ur% No. G.J T1% F'c+or3 T1'+ %r% Co.3i0%r%0 1il% I.)%3+i./

A.'l*3i3 B I.+%r&r%+'+io.<
Brom the surve# it was found that the ma*imum respondents considered return on investment
was most important factor! 17P respondents considered ta* "enefits as an important factor and
14P respondents considered capital appreciation as an important factor. t can "e stated that
majorit# of investors were consider return as an important factor while investing.
<)
S+'+%m%.+ H. To K.o2 I.)%3+orL3 Ac+io. I. C'3% Of S+oc, M'r,%+ 0ro&.
T'-l% No. G.H T1% I.)%3+orL3 Ac+io. I. C'3% Of S+oc, M'r,%+ 0ro&
I.)%3+orL3 &r%f%r%.c% i. c'3% of
lo33%3
No. of R%3&o.0%.+3 P%rc%.+'/% of R%3&o.0%.+3
Transfer funds into secure
investment
15 )5P
/ait to see if investment improves )6 46P
nvest more funds 10 06P
/ithdraw funds C stop investing ) 5P
Total 56 166P
Fi/ur% No. G.H T1% I.)%3+orL3 Ac+io. I. C'3% Of S+oc, M'r,%+ Dro&
A.'l*3i3 B I.+%r&r%+'+io.<
Brom the surve# it was found that ma*imum respondents would wait to see if their investment
improves and start generating funds! 06P respondents would invest more funds! )5P
respondents would transfer funds into secure investment and 5P respondents would stop
investing. t can "e stated that majorit# of investors would like to wait to see whether investment
improves or the# can invest more funds.
<0
S+'+%m%.+ 8@. To K.o2 T1% D%ci3io. R%/'r0i./ O+1%r I.)%3+m%.+ Polic*
T'-l% .o. G.88 T1% O+1%r I.)%3+m%.+ Polic*
I.)%3+m%.+ D%ci3io. No. of R%3&o.0%.+3 P%rc%.+'/% of R%3&o.0%.+3
Les 49 97P
+o 1 )P
Total 56 166P
Fi/ur% G.8@ T1% O+1%r I.)%3+m%.+ Polic*
A.'l*3i3 B I.+%r&r%+'+io.<
Brom the surve# it was found that 97P respondents have the other investment polic# where as
)P respondents do not have the other investment polic#.
<4
S+'+%m%.+88. To K.o2 +1% S'+i3f'c+io. !%)%l Of R%3&o.0%.+3 i+1 T1%ir I.)%3+m%.+
O&+io.
T'-l% .o. G.88 Im&or+'.+ F'c+or3 for C1oo3i./ T1% I.)%3+m%.+ O&+io.
Range
&a*. ScoreF166W5F566 =.ighl# Satisfied?
'vg. ScoreF166W0F066 =+eutral?
&in. ScoreF166W1F166 =.ighl# >issatisfied?
A.'l*3i3 B I.+%r&r%+'+io.<
&ost of the respondents have given the highest summated score to shares. 'nd the second
most important investment option is de"entures which influenced the decision regarding
investment. Other important factor is mutual fund coverage which has the 00) summated
score. Return on derivatives get the )76 summated score.
S+'+%m%.+ 8>. Im&or+'.+ F'c+or3 T1'+ '3 Co.3i0%r%0 1il% I.)%3+i./
<5
P'r+icul'r3 Hi/1l*
Di33'+i3fi%0
Di33'+i3fi%0 N%u+r'l S'+i3fi%0 Hi/1l*
S'+i3fi%0
Summ'+%0
Scor%
E8F E>F EAF ECF E?F
Shares 16 : 14 06 46 074
&utual funds 1) 15 )6 05 17 00)
%onds )6 17 05 19 7 )<<
>e"entures 15 16 15 46 )6 046
>erivatives 06 16 )6 06 16 )76
T'-l% No. G.8> Im&or+'.+ F'c+or3 T1'+ '3 Co.3i0%r%0 1il% I.)%3+i./
P'r+icul'r3 Hi/1l*
Di33'+i3fi%0
Di33'+i3fi%0 N%u+r'l S'+i3fi%0 Hi/1l*
S'+i3fi%0
Summ'+%0S
cor%
E8F E>F EAF ECF E?F
Return on
investment
6 6 4 06 :: 4:)
Ta* "enefits 6 6 17 47 04 41:
1apital
appreciation
6 6 )6 46 46 4)6
&aturit#
period
5 5 46 06 )6 055
Risk 5 16 )6 05 06 0<5
Safet# of
principal
16 )6 46 )6 16 066
-i@uidit# 15 15 )6 06 )6 0)5
R'./%<
&a*. ScoreF166W5F566 =.ighl# Satisfied?
'vg. ScoreF166W0F066 =+eutral?
&in. ScoreF166W1F166 =.ighl# >issatisfied?
A.'l*3i3 B I.+%r&r%+'+io.<
&ost of the respondents have given the highest summated score to Return on investment. 'nd
the second most important factor is 1apital appreciation which influenced the decision
regarding investment. Other important factor is Ta* "enefit which has the 41: summated score.
<:
CHAPTER I
FINDIN"S OF THE
STUDY
<<
FINDIN"S OF THE STUDY
Bollowing findings were generated from the stud#A3
1. &a*imum investors are aware of all the investment options.
). nvestors do not invest in a single avenue. The# prefer different avenues and ma*imum
investors prefer to invest in shares! mutual funds C de"entures.
0. &a*imum investors wants their investment grow at fast rate.
4. The investment decision of investors is influenced "# their own decision and through
friends C relatives.
5. >ifferent factors considered "# investors while investing are return! risk! ta* "enefits!
capital appreciation and the most prominent factor is the return on an# investment
avenue.
:. &ajorit# of investors invest 153)6P of their annual income.
<. &a*imum investors invest on monthl# "asis.
7. The investors investing in different avenues are highl# satisfied with the return generated
"# their investment option.
9. &a*imum investors have other investment policies.
16. The most important factor is Return which influenced the decision regarding investment.
<7
CHAPTER J
CONC!USION
AND
RECOMMENDATIO
NS
<9
J.8 CONC!USION
ndian Stock &arkets is one of the oldest in 'sia. ts histor# dates "ack to nearl# )66 #ears
ago. The earliest records of securit# dealings in ndia are meager and o"scure. T1% E'3+ I.0i'
Com&'.* was the dominant institution in those da#s and "usiness in its loan securities used to
"e transacted towards the close of the eighteenth centur#. The nature of investment differs from
individual to individual and is uni@ue to each one "ecause it depends on various parameters like
future financial goals! the present C the future income model! capacit# to "ear the risk! the
present re@uirements and lot more. 's an investor progresses on hisJher life stage and as hisJher
financial goals change! so does the uni@ue investor profile. &a*imum investors are aware of all
the investment options. nvestors do not invest in a single avenue. The# prefer different avenues
and ma*imum investors prefer to invest in shares! mutual funds C de"entures. The investment
decision of investors is influenced "# their own decision and through friends C relatives.
&ajorit# of investors invest 153)6P of their annual income.. The most important factor is Return
which influenced the decision regarding investment.
n toda#2s scenario when all services are going to "e online or in electronic form ,arv# Stock
%roking is creating '2'r%.%33 of online trading that client can trade from an#where from the
/orld.
Ri3, m'.'/%m%.+ +%'m of ,arv# Stock %roking taking care of client portfolio and whenever
the value of his portfolio will go decrease "# 06P client alwa#s informed "# his Relationship
&anager.
n ,arv# Stock %roking possi"ilit# of 'uc+io. is ver# less "ecause of large client "ase! so he can
sell shares an#time.
76
J.> RECOMMENDATIONS
Follo2i./ 2%r% +1% r%comm%.0'+io.3 of +1% 3+u0*<
The various investment tools which were mostl# preferred "# the investors were shares!
mutual funds etc. So there should "e various other means to create awareness regarding
the potential of other instruments and the tools which can "e more "eneficial to the
investors.
The investors consider various factors while making investment like risk! return! li@uidit#
etc. There should "e rational thinking so that the investor is a"le to know that at what
point of time the# need capital appreciation instead of reducing the risk and when the#
need return instead of li@uidit#.
The preferred time span of investment "# the investors depends upon the need of the
investor that whether the# wants to have earl# and high returns or wants to have sta"le
returns! most pro"a"l# the long time span is suita"le "ecause the returns are high and
safet# is also there.
The satisfaction levels of various investors are different due to different investment
alternatives the# opt for. f the# will "e aware of each t#pe of alternatives and the worth
of the alternatives then investing as per that there satisfaction level will also "e high.
nvestors should have the complete knowledge of stock market.
71
SU""ESTIONS
7)
SU""ESTIONS
X ,arv# Stock %roking should have to give special preferences to trading via "ranch network!
telephones and nternet account.
X ,arv# Stock %roking should have improved customi(ed products for lending against shares.
X ntegrated Trading and >epositar# 'ccount should have to modif# according to the need of the
investors.
X Technolog# transforming desktop should have to "e +E'T like terminal for nternet trading.
X One Screen for "oth 1ash and >erivatives Trading s#stem have to "e revised and modified..
X E@uit# Research >epartment at ,arv# Stock %roking should have to stud# the market and
provides information.
X ,arv# Stock %roking should have to customi(e nsurance services.
70
REFERENCE
74
REFERENCES
1harles =1999?. Economic Polic#! 'stonishing growth in 'mericans8 stock portfolios.
#he Icfai %ournal of &toc' Mar'et( : =0?A 403:6. 'vaila"le at
httpAJJpapers.ssrn.comJsol0Jresults.cfm last accessed on $ul#5! )669.
>ijk =)66<?. Economic Polic#! The Si(e Effect in E@uit# Returns. Empirical Research
Bindings. %ournal of )inancial Management and Analysis( )1=1?.'vaila"le at
httpAJJpapers.ssrn.comJsol0Jresults.cfm last accessed on $ul#5! )669.
$ohnson =)667?. The Ialue of Sualit#A Stock &arket Returns to Pu"lished Sualit#
Reviews. #he Icfai %ournal of Applied *conomics( <=0?A<3)). 'vaila"le at
httpAJJpapers.ssrn.comJsol0Jresults.cfm last accessed on $une5! )669.
&a#ank =)669?. Performance 1orporate Eovernance as a >eterminant of E*ternal
Binance in Transition EconomiesA ' 1ase Stud# of ndia .#he Icfai +niversity %ournal of
Applied *conomics! 7=1?A 013 44. 'vaila"le at httpAJJpapers.ssrn.comJsol0Jresults.cfm last
accessed on $une5!)669
ntroduction on ndian Stock &arket availa"le at
httpAJJwww."anknetindia.comJ last accessed on +ovem"er 5! )669.
ntroduction on %om"a# Stock E*change availa"le at
ErrorP H*&%rli., r%f%r%.c% .o+ )'li0. last accessed on +ovem"er 15! )669.
ntroduction on +ational Stock E*change availa"le at
ErrorP H*&%rli., r%f%r%.c% .o+ )'li0. last accessed on +ovem"er 15! )669.
ntroduction on Online nvestors C Traders availa"le at
httpAJJwww.traderji.comJ last accessed on +ovem"er 1<! )669
ntroduction on T#pes of investment availa"le at
httpAJJfinance.mapsofworld.comJinvestmentJt#pesJ last accessed on +ovem"er 1<! )669.
75
ANNE(URE
7:
NUESTIONNAIRE
>ear respondent!
am a student of &%'! is conducting a research on GA STUDY ON INVESTMENT
HORIZONS OF INVESTORS IN . INDIAH. would "e e*tremel# thankful if #ou spare some
time to answer the following @uestions. 'll the facts disclosed "# #ou will "e used for academic
purpose onl#.
PERSONA! PROFI!E
EAF N'm%<
=%? A/%< -ess than )6 #ears
)6 M 46 #ears
Ereater than 46 #ears
ECF "%.0%r<
a? &ale
"? Bemale
EDF Occu&'+io.<
a? Service
"? Profession
c? %usiness
d? Student
=E? I.com%< -ess than Rs )6666
E&%r mo.+1F Rs )6666 M Rs 46666
Ereater than Rs 46666
EFF Nu'lific'+io.<
a? &atric
"? Under Eraduate
c? Post Eraduate
S1. >o #ou invest in share marketY
i? Les ii? +o
S). Out of the following! which t#pe of instrument are #ou aware ofY
a? Shares
"? &utual Bunds
c? >e"entures
7<
d? %onds
e? >erivatives
S0./here have #ou "een investingY
a? Shares
"? &utual Bunds
c? >e"entures
d? %onds
e? >erivatives
S4.'t which rates do #ou want #our investment to growY
a? Steadil#
"? 't an average rate
c? 't fast rate
S5. .ow fre@uentl# do #ou investY
a? >ail#
"? /eekl#
c? &onthl#
d? Learl#
S:. /hat percentage of #our annual income do #ou invest in share marketY
a? Up to 16P
"? 16315P
c? 153)6P
d? &ore than )6P
S<. %# which source of information #ou came to know a"out particular optionY
a? Self
"? Briends and Relatives
c? Service providers and 1onsultants
d? +ewspapers! &aga(ines and 'dvertisements
e? 'gents
f? /orkshops C Seminars
S7./hich factor do #ou consider "efore investing in share marketY

a? 1apital 'ppreciation
"? &aturit# Period
c? Safet# of Principal
d? Risk
e? Return on investment
77
f? Ta* "enefits
g? -i@uidit#
S9. n #our opinion! what would "e the optimum strateg# if stock market drops immediatel#
after #ou invest in itY
a? 1ut #our losses and transfer funds into secure investments
"? /ait to see if investment improves
c? nvest more funds to lower #our losses e*pecting future growth
d? /ithdraw #our funds and stop investing
S16. >o #ou have an# other investment polic#Y
a? Les
"? +o
S11. Rate the satisfaction with the return generated "# #our investment optionY
.ighl# Satisfied +eutral >issatisfied .ighl#
Satisfied >issatisfied
=5? =4? =0? =)? =1?
a? Shares ZZZZZZ ZZZZZZ ZZZZZZ ZZZZZZZ ZZZZZZZZZ
"? &utual funds ZZZZZZ ZZZZZZ ZZZZZZ ZZZZZZZ ZZZZZZZZZ
c? %onds ZZZZZZ ZZZZZZ ZZZZZZ ZZZZZZZ ZZZZZZZZZ
d? >e"entures ZZZZZZ ZZZZZZ ZZZZZZ ZZZZZZZ ZZZZZZZZZ
e? >erivatives ZZZZZZ ZZZZZZ ZZZZZZ ZZZZZZZ ZZZZZZZZZ
S1). Rate the satisfaction with the factors that was considered while investingY

.ighl# Satisfied +eutral >issatisfied .ighl#
Satisfied >issatisfied
=5? =4? =0? =)? =1?
a? Return on
nvestment ZZZZZZ ZZZZZZ ZZZZZZ ZZZZZZZ ZZZZZZZZZ
"? Ta* %enefits ZZZZZZ ZZZZZZ ZZZZZZ ZZZZZZZ ZZZZZZZZZ
c? 1apital
'ppreciation ZZZZZZ ZZZZZZ ZZZZZZ ZZZZZZZ ZZZZZZZZZ
d? &aturit# Period ZZZZZZ ZZZZZZ ZZZZZZ ZZZZZZZ ZZZZZZZZZ
e? Risk ZZZZZZ ZZZZZZ ZZZZZZ ZZZZZZZ ZZZZZZZZZ
f? Safet# of principalZZZZZZ ZZZZZZ ZZZZZZ ZZZZZZZ ZZZZZZZZZ
g? -i@uidit# ZZZZZZ ZZZZZZ ZZZZZZ ZZZZZZZ ZZZZZZZZZ
79

A Study On Investment Horizons of Investors in India

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A STUDY ON INVESTMENT HORIZONS OF INVESTORS IN INDIA

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