awareness regarding equity products amongst corporate employees
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AWARENESSREGARDINGEQUITY
PRODUCTSAMONGSTCORPORATE
EMPLOYEES
Presented by
Ashvin Koladara (107680592065)
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RESEARCH METHODOLOGY
Objectives of the study
To find out the awareness level for equity products amongstcorporate employees in satellite.
To study the preference of the corporate employees for the
investment tools.
To know how many people are investing in equity market.
To know the purpose of investing in equity products of
corporate employees.
Research Design: descriptive design.
Sampling Design Population: corporate employees
Sampling Method: convenience sampling
Sample size: 300
Sample unit: corporate employee
Sources of data: primary and secondary
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RESEARCH METHODOLOGY
Literature Review
Share Market Knowledge, The NSE Of India, And BSE OfIndia (Nirmal kumar Soni, (2009), Author of stock market
analyst)
The Investment Pattern in Ahmedabad and Gandhinagar
(Roney Josheph and Lalit barasiya, (2009) from NRIBM)
Statistical Technique
Chi-Square test
Limitations of the study
The investors may be bias in giving the require data.
The scope and analysis of the project is limited to 300
corporate employees in satellite area, Ahmadabad.
Time Constraint
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COMPANY PROFILE
(MOSL) was founded in 1987 as a small sub-broking unit
a well diversified financial services firm offering a range of financialproducts and services
Companies Products and Services:
equity, derivatives, insurance, commodities, MFs, depository services, PMS
SWOTAnalysis:
Strengths
Large and diverse distribution network
Strong research and sales teams
Experienced top management
Weaknesses
MOFSL operate on leased premises.
MOFSL have entered into a number of related party transactions.
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CONT
Opportunities
Good Customer Base Rising consumer incomes will translate into disproportionately
higher allocation of these funds into equities
Can make use of sustained growth in retail segment of financialProduct.
Threats Existing Competitors and new local players can affect company.
Market has been uncertain for the last 3 and more months.
Political instability
Downturns or disruptions in the securities markets could reducetransaction volumes, and could cause a decline in the business
and impact profitability.
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INTRODUCTON OF EQUITY
Equity Two wordsEquality & Ownership
Equity means equal ownership of the company Equity Investment
Compare to most other forms of investments, investing in equity sharesor equity based mutual funds offers the highest rate of return, if investedover a longer duration.
Equity products: two routes through which one can participate in equity
Direct equity: Equity /Share,IPOs One of the best investment avenues available but it is one of the riskiest.
best example of a "High Risk High Return" kind of investment. Thiskind of Investment Avenue is not meant for everybody because of theamount of expertise, skillets, time and energy that it demands.
Indirect equity: MFs
A common pool of money into which investors place their contribution
This money is invested according to the pre-stated objectives of thefund
Ownership of the fund is joint or mutual amongst all the investorsequivalent to the contribution made
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DATA ANALYSIS AND INTERPRETATION
How much are you aware about equity products?
100, 33%
129, 43%
71, 24%
Awareness Level of Equity Products
Fully Aware
Little Aware
Not Aware
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CONT...
Relationship between Gender & Awareness
96, 37%
109, 41%
59, 22%
Male & Awareness
Fully Aware
Little Aware
Not Aware
4, 11%
20, 56%
12, 33%
Female & Awareness
Fully Aware
Little Aware
Not Aware
264
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CONT...
Relationship between Age & Awareness
82, 32%
115, 45%
60, 23%
25 - 35 Age group & Awareness level
Fully Aware
Little Aware
Not Aware
18, 42%
14, 32%
11, 26%
> 35 Age group & Awareness level
Fully Aware
Little Aware
Not Aware
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CONT... Rate the following investment tools according to your
preference?
0
10
20
30
40
50
60
70
Mutual
Funds
Govt.
Securities
& Bonds
Insurance Equity
market &
IPOs
Real Estate Bullions Fixed
deposits
64
3735
31
49
18
66
21% 13% 12% 10% 16% 6% 22%N
o.o
fRespondents
Investment Tools
Most Preferable Investment Tool
Respondents
Percentage
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CONT...
Least Preferable Investment Tool
0
10
20
30
40
50
60
70
80
Mutual
Funds
Govt.
Securities &
Bonds
Insurance Equity
market &
IPOs
Real Estate Bullions Fixed
deposits
3432
39
52
43
80
20
11% 11% 13% 17% 14% 27% 7%
N
o.o
fRespondents
Investment tool
Least Preferable Investment tool
Respondents
Percentage
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CONT...
Do you invest in Equity market?
0
20
40
60
80
100
120
140
160
Yes
No
148152
49%
51%
No.ofRespondents
Invest
Invest in Equity Market
Respondents
Percentage
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CONT...
Relationship between Awareness & Investment
decision
91
56
1
9
7370
0
10
20
30
40
50
60
70
80
90
100
Fully aware Little aware Not aware
No.o
fRespondents
Awareness
Awareness and Investment decision
Yes
No
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CONT...
Relationship between Gender & Investment Decision
137, 52%
127, 48%
Male & Investment decision
Yes
No
11, 31%
25, 69%
Female & Investment decision
Yes
No
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CONT...
Route of Investment in equity
74, 50%
36, 24%
38, 26%
Route of transaction
Direct Equity
Mutual Funds
Both
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CONT...
What is the investable (investing) amount from your
income in Equity market?
0
20
40
60
80
100
10% to 20% 20% to 30% 30% to 50% > 50%
95
30
19464% 20% 13% 3%
N
o.ofRespondents
Percentage of Income
Investable amount from income in equity market
Respondents
Percentage
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CONT...
Time horizon for investment
0
5
10
15
20
25
30
35
4045
50
Less than 6
months
6 months to 1 year 1 yearto 3 year More than 3 years
40
23
49
36
27% 16% 33% 24%N
o.ofRespondents
Time Horizon
Time Horizon for investment
No. of Respondents
Percentage
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CONT...
Relationship between Time horizon & Expected
return
5 56
3
21
10
27
15
5 5
15
109
3
1
8
0
5
10
15
20
25
30
Less than 6 months 6 months to 1year 1 year to 3 year more than 3 years
ExpectedReturn
Time horizon
Time horizon Vs. Expected return
0-10%
11-20%
21-25%
More than 25%
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CONT...
What kind of investment you prefer (your risk
appetite)?
36, 24%
89, 60%
15, 10%
8, 6%
Risk Appetite
High Risk High Return
Medium Risk Medium Return
Low Risk Low Return
Do Not Like Any Risks
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CONT...
Relationship between Gender & Risk Appetite
34, 25%
82, 60%
13, 9%
8, 6%
Male & Risk appetite
High risk high return
Medium risk medium
return
Low risk low return
Do not like any risk
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CONT...
Whom do you depend on financial advice?
11
21
38
26
52
46
16
2426
36
44
27
19
36
22
25
40
29
36
18
22
44
38
24
20
0
10
20
30
40
50
60
P1 P2 P3 P4 P5
N
o.ofRespondents
Source of Financial Advice
Depend on Financial Advice
Advertisement
Financial Advisor Firm/Broker
Friends / Relatives
Magazines / Newspaper
Investment Website
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CONT...
What is your purpose behind investment?
0
10
20
30
40
50
60
70
Wealth
creation
Tax savings others Future
uncertain
events
Future
obligations
More than
one purpose
63
20
1311 10
31
43% 13% 9% 7% 7% 21%No.ofRespondents
Purpose
Purpose behind Investment
No.of Respondents
Percentage
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CONT...
How much returns do you expect from equity
market?
0
10
20
30
40
50
60
70
80
0-10% 11-20% 21-25% More than 25%
19
73
35
21
13% 49% 24% 14%
No.o
frespondents
Percentage of Return
Expected Return from Equity Market
NO. of Respondents
Percentage
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HYPOTHESIS
H0: Return on investment is independent of the % of investment.
H1: Return on investment is dependent on the % of investment.
=0.05
DOF = (4-1) (4-1) =9
2 (tabulated) = 16.92
2 (calculated) = 9.7944
2(tabulated) > 2 (calculated)
Interpretation:
Here, H0 is accepted.
It means that return on investment is independent of the percentage of investment.
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FINDINGS
Majority of the corporate employees (43%) are little aware about the equity products.
37% male are fully aware about the equity products whereas only 11% female comeunder fullyaware category.
49% corporate employees are investing in equity products
Out of 100 fully aware corporate employees, 91 are investing in equity products.There are 71 employees who are not aware and thus they do not invest in equityproducts.
52% male and only 31% female are investing in equity market.
Out of 300 corporate employees, 66 prefer to invest in fixed deposits and 64 prefer toinvest in mutual funds for investment
Half of the employees (50%) prefer direct equity as a route of investment in equity.
64 % are investing 10-20 % of their income in equity market.
50% employees prefer online mode of transaction.
Irrespective of the time horizon, employees expect the return of 11-20% in equitymarket.
60% prefer medium risk medium return in equity market for safety purpose.
25% male are more attractive towards taking high risk-high return whereas only 18%female take high risk.
Out of 148 corporate employees, 46 depend on investment advisor firm / broker and44 depend on friends / relatives for investment advice.
Wealth creation is the prime purpose behind the investment in equity amongst thecorporate employees with 43%.
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CONCLUSION
Over the last few years, the level of awareness is much higher than
the past.
Equity as a concept is well known, but the target audience still
need to gain more awareness especially the female counterpart.
Many people have fear of equity products. They think their money
will not be secure in equity products - Need the awareness and
knowledge of equity products and its related terms. The future of equity market is very bright as it offers the potential
for a larger return than the fixed income investing in a long run. The
equity products are right for the investors with high tolerance for
risk.
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RECOMMENDATIONS
The company should do more canopies to attract more people and to
increase the awareness. The company should do marketing of Exchange Traded Funds
(ETF) to explore opportunities in the untapped segment as it is a
new way to indirectly participating in equity.
The company should also give information about the tax benefits to
invest into equity products for long term horizon.
There is a large scope for the company to tap the salaried persons via
SIP. SIP is an easy tool for salaried person as it provides the facility
of doing the investment in EMI.
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BIBLIOGRAPHY
www.motilaloswal.com
http://EzineArticles.com/?expert=Nirmal_Kumar_Soni
www.aumfinancialadvisors.com/market.html
www.ncfm.com
http://www.motilaloswal.com/http://ezinearticles.com/?expert=Nirmal_Kumar_Sonihttp://www.aumfinancialadvisors.com/market.htmlhttp://www.ncfm.com/http://www.ncfm.com/http://www.aumfinancialadvisors.com/market.htmlhttp://ezinearticles.com/?expert=Nirmal_Kumar_Sonihttp://www.motilaloswal.com/ -
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