SYNOPSIS

COMPANY PROFILE
ShareKhan Ltd., one of the leading stock broking firm and pioneer in online trading in India is a progeny of Shripal, Sevantilal, Kantilal and Ishwarlal [SSKI]. They have 250 share shops in 120 cities. The daily turnover of ShareKhan is round about Rs. 11-12 crores and working capital round about Rs. 450 crores. SSKI has been helping their investors from round about 81 years with their equity investments. ShareKhan Ltd. is known for its deep understanding of the stock market. They are also providing multi channel access facility to its investors through an online service with its website www.sharekhan.com and Dialn-Trade through their call-centers. They have excellent trading facilities like the Classic Account and other software base online trading product for the day-traders, called Speed Trade [this provides everything to the trader on his screen instantly]. They regularly send detail research reports and the expert suggestions & tips through e-mail to its investors everyday. These services help its investors in the investment decisions. Share khan offers trade execution facilities on the BSE and NSE, for cash as well as derivatives, depository services, commodities trading on the MCX & NCDEX and most importantly. The SSKI Group also comprises of Institutional broking & Corporate Finance. The Institutional broking division caters to domestic and foreign institutional investors while the Corporate Finance Division focuses on niche areas such as infrastructure, telecom and media. SSKI has been voted as the Top Domestic Brokerage House in the research category, twice by Euro money survey and four times by Asia money 1

survey. SSKI was adjudged as the Best Local Brokerage in India by Asia money.

INTRODUCTION Investment Scenario

1) Investment: It is the commercial activity to commit the fund in order to earn a profit. Investment is the employment of funds on assts with the aim of earning income or capital appreciation. According to the economist, Investment is the net addition made to the nations capital stock that consists of goods and services that are used in production process. According to finance, financial Investment is the allocation of money to assets that are expected to yield some gain over a period of time. 2) Scenario: According to the freedictionary.com it is the context and environment in which something is set. If we combine these two terms then the whole meaning of the investment scenario that it is the environment of the investment activity of the people to invest their money into the different available investment avenue as per their risk taking ability, and the availability of thee finance they have.

Investment Objective:
The main investment objective are increasing the Rate of Return and

Reducing the Risk. The subsidiary objectives are Safety, Liquidity, Hedge

against the Inflation, Capital gain, Have a secure future, Assured source of Income

Investment Avenues:

Bank deposit Indian Bank has many deposit schemes tailored to suit the needs of its investorss, both individuals and organizations. The facilities of nomination, loan against term deposit and foreclosure of term deposit are available. Interest paid on domestic term deposits, except Recurring Deposit, is subject to Tax deduction at source, as per rules from time to time. Public provident fund :( PPF) PPF scheme was introduced by central government in 1968. The scheme enables the member of the public to make contribution to the fund and obtain income tax rebate under the relevant provisions of the income tax. Chit fund In a chit scheme, a specific number of individuals come together to pool a specific amount of money at periodic intervals. Usually the number of individuals and the number of periods will be the same. At the end of each period, there will be an auction of the money. Members of the chit will participate in this auction for the pooled money during that interval. The money will be given to the lowest bidder. The bid amount will be divided by number of members, and thus determining per head contribution during that period. Usually the discount will continue to decrease over periods.

The person getting money in the last period will receive the full scheme amount.

Equity Share: Equity share are also called as ordinary shares. Share capital of a company is divided into a number of small units of equal value called shares. Mutual funds: A Mutual fund is a pool of investments used to buy a large portfolio of securities that will be managed by a professional advisor. When you buy a share in a mutual fund, you effectively buy a bit of each security held in the fund's portfolio. Insurance The future is uncertain for each and everyone. No one knows he or she will live. The investment benefit is paid to the insureds beneficiaries after his death or it can be used during the life as well. Life Insurance Policy owners can turn to the cash value of the policy in case of financial emergency when all avenues are either blocked or denied. They know that they can avail of loans based on their insurance policies. Bonds Bond is a long term debt instrument that promises to pay fixed annual sum as interest for specified period of time. Government securities:

Debt securities issued by the central government, state government, and quasi-government agencies are referred to as government securities or gilt-edged securities. Government securities have maturities ranging from 3-20 years and carry interest rates that usually vary between 8 and 10 percent.

RESEARCH METHODOLOGY Research Problem:

Its not easy to know about the investors style of investments unless and until some kind of research is not conducted to the investors profile. So in order to solve the problem, I have decided to conduct a research on the Investment Scenario among the People of Baroda city.

Research Objective:
Primary Objective: To study the investment scenario among the people of Baroda city. Secondary Objective: To know the awareness of the people towards different investment

options. To know about the investment avenues which attract the investors

according to their occupation. To know the investors risk tolerance and their returns expected. To know the salient features expected while selecting their

investment options.

Research Design:
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I have used the Descriptive Research Design for the purpose of survey as it will enable me to describe the characteristics of a particular individual or a group of people and their tendency towards something and in our case it could be the investment options available.

Sampling Method:
I would use the method of stratified sampling as it would give better idea about the different pattern of investment of different categories of people viz. professionals, businessmen, students, service people etc.

Sample Size:
It would be better to have a sample of 200 people to have better idea and representative ness of the population being surveyed.

Research Instrument:
A detailed questionnaire shall be used for purpose survey and it is attached with this proposal.

Data analysis tool:

Since it is better to greater validity of the results found it is better to use the statistical software using computers i.e. SPSS (Statistical Package for Social Science) In SPSS I used T-test, Mean, Median, Mode, Frequency Table, and Cross Tabulation.

DATA ANALYSIS AND INTERPRETATION People preferences for the investment invenue.

Insurance

One Sample t-Test: Null Hypothesis (HO): There is no significant difference between calculated mean and hypothesized mean (4). In other words, we hypothesize that the investors are agree that the insurance is one of the important criteria consider by the investors while they take investment decision. i.e. Ho : x = = 4 Alternative Hypothesis (H1): There is significant difference between calculated mean and hypothesized mean. In other words the investors are not agree with the statement that insurance is one of the important criteria consider by the investors while they take investment decision. i.e. H1: x , i.e. H1: x 4 Significance level: 0.05 One-Sample Statistics

Insurance

N 200

Mean 4.58

Std. Deviation 0.760

Std. Error Mean 0.054

One-Sample Test Test Value =4 Sig. (2tailed) Mean Difference 95% Confidence Interval of the Difference Lower 0.000 10.703 Inference: Here the test is performed at 95% significance level and the p-value comes out as 0.000 which is less than 0.05, it means that the null hypothesis H0 is rejected and it can be said that there is significant difference between calculated mean and hypothesized mean. 199 0.575 0.47 Upper 0.68

Insurance

df

Mutual fund

One Sample t-Test: Null Hypothesis (HO): There is no significant difference between calculated mean and hypothesized mean (4). In other words, we hypothesize that the investors are agree that the mutual funds is one of the important criteria consider by the investors while they take investment decision

i.e. Ho : x = = 4 Alternative Hypothesis (H1): There is significant difference between calculated mean and hypothesized mean. In other words the investors are not agree with the statement that mutual funds is one of the important criteria consider by the investors while they take investment decision. i.e. H1: x , i.e. H1: x 4 Significance level: 0.05 One-Sample Statistics Std. Error Mutual fund One-Sample Test Test Value = 4 Mean Sig. (2-tailed) Mutual fund t -1.607 Inference: Here the test is performed at 95% significance level and the p-value comes out as 0.110 which is greater than 0.05, it means that the null hypothesis H0 is accepted and it can be said that there is no significant difference between calculated mean and hypothesized mean. df 0. 110 199 -0.14 -0.31 0.03 Differenc e 95% Confidence Interval of the Difference Lower Upper N 200 Mean 3.86 Std. Deviation 1.232 Mean 0.087

Factors to which people give importance while taking an investment decision

Risk
Null Hypothesis (HO): There is no significant difference between calculated mean and hypothesized mean (4). In other words, we hypothesize that the investors are agree that the risk is one of the important criteria consider by the investors while they take investment decision. i.e. Ho : x = =4 Alternative Hypothesis (H1): There is significant difference between calculated mean and hypothesized mean. In other words the investors are not agree with the statement that risk is one of the important criteria consider by the investors while they take investment decision. i.e. H1: x , i.e. H1: x 4 Significance level: 0.05 One-Sample Statistics

Risk

N 200

Mean 4.10

Std. Deviation 1.05

Std. Error Mean 7.43E-02

One sample t test: Test Value = 4 Sig. Mean (2-tailed) 1.345 199 Difference

df

95% Confidence Interval of the Difference 10

Lower

Upper 0.25

Risk
Inference:

0.180

1.00E-01

-4.66E-02

Here the test is performed at 95% significance level and the p-value comes out as 0.180 which is greater than 0.05, it means that the null hypothesis H0 is accepted and it can be said that there is no significant difference between calculated mean and hypothesized mean.

FINDINGS
Out of 200 people 124 people are moderately aware & only 5 were totally unaware about the stock market. 51.5% people are focusing secondary market in Stock Market. 100% people are aware about Bank Deposit & equity share while only 23.5% people are aware about the chit fund. Most preferable investment avenue is insurance and the least preferable is chit fund. Main objective for investment according to the investors is capital gain. Investors are giving importance to Rate of return parameter while they investing. 65% people are taking help from the stock broking firms. Investors expected return is 19%-24% of their investment. Investors are neutral about stock brokers help in designing their portfolio.

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 Investors are neutral about the satisfaction of services given by current broking firm. The awareness level of Equity shares, Bank Deposit, and Insurance is high. The people are not that much aware about the Bond, G. Securities and other avenues. Chit fund is the only avenue which is not that much known to the people in the city.

CONCLUSION
The investment avenue prevailing among the people in Baroda city is Bank deposit and Equity share. Most important factor which the investors consider while investing in any of the avenue is Rate of Return (ROR). The objective behind the investment decision of most of the respondents is Capital gain. The people are not that much aware about the Bond, G. Securities and other avenues. Investment Avenue which most prefer by Investors is insurance and the least preferable is chit fund. Investors are expecting more return.

RECOMMENDATION
Only 65% of investors are taking help from the broking firm, so more focus should on 35% of investors.

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 There is need to create awareness of Mutual Fund among the retired person. The level of awareness for Bonds, G. securities & Others should be increased among the people in the city. The Stock Broking firm should help the investor in designing their portfolio. The Stock Broking firm should also provide better services to the investor to increase the satisfaction level of the investors.

BIBLIOGRAPHY
Books:

By Donald R Cooper & Pamela S Schindler, Business Research

Methods, Eighth Edition (2003), Tata McGraw-Hill, New York.

By Darren George & Paul Mallery, SPSS For Windows Step By Step,
Sixth Edition (2006), Pearson Education, Inc.

By S P Gupta, Statistical Methods, Thirty Fifth Revised Edition

(2007), Sultan Chand & Sons Education Publishers, New Delhi

By

Punithavathy

Pandian,

Security

Analysis

&

Portfolio

Management Edition 2007, Vikas Publishing Housing Pvt. Ltd.

By G. K. Beri, Marketing Research

Websites:

www.sharekhan.com www.amfi.com 13

www.investopedia.com www.fridictionary.com www.nseindai.com www.bseindia.com

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