commodity future
TRANSCRIPT
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INVESTORPERCEPTION ABOUT
COMMODITYMARKET IN BARODA
GUIDED BY:-PROF. DIPAK GAYWALA
PREPARED BY:-HITESH VARMA(21)
ANKIT SHAH(03)
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Objective of the Study
To study the perception of investors about commoditymarket
Sub Objectives:
1. To study the growth of commodity markets
2. To find out the investment pattern of investors incommodity market on the basis of income, age,
occupation, etc
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Research MethodologySample Design
The total population for the study is 3,00,000 In this study convenient random sampling method is used to
select the respondents. The sample size is 150 respondents.
Source of Data The various sources of data are
Primary Sources, which includes questionnaire.
Secondary data which includes books and internet etc.
Tools for Data Collection
The questionnaire is the tool used for data collection.
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What is a commodity?Any product that can be used for commerce or
an article of commerce which is traded on an
authorized commodity exchange is known as
commodity
Commodity includes all kinds of goods. FCRA
defines goods as every kind of moveable
property other than actionable claims, moneyand securities.
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Commodity Futures
Trading The commodity futures trading, consists of a futures contract,
which is a legally binding agreement providing for the delivery
of the underlying asset or financial entities at specific date in
the future.
Like all future contracts, commodity futures are agreements to
buy or sell something at a later date and at a price that has
been fixed earlier by the buyer and seller.
So, for example, a cotton farmer may agree to sell his output toa textiles company many months before the crop is ready for
actual harvesting.
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FMCFMC
CommodityCommodity ExchangesExchanges
NationalNational
exchangesexchanges
RegionalRegional
exchangesexchanges
NCDEXNCDEX NMCENMCE MCXMCX NBOTNBOT 20 Other Regional Exchanges20 Other Regional Exchanges
Structure of indian commodity
future
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AGE PROFILE
Age Group No. of
Respondents
Percentage
20-30 years 65 43%
30-40 years 45 30%
40-50 years 25 17%
50 years and
above
15 10%
43 %
30 %
17%
10 %
Pie Chart Showing Age Profile Of
The Respondents
20-30 Years
30-40 Years
40-50 Years
50 Year and above
FindingsFrom the above table and chart, it can be seen that 43% of the respondents were in the age
group of 20-30 years, 30% were in the age group of 30-40 years, and 17% were in the age group
of 40-50 years and 10% in the age group of 50 years and above.
Interpretation
It can be concluded that mainly the young people have invested commodity futures.
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OCCUPATION PROFILEOccupation No. of
Responde
nts
Percenta
ge
Government Employee 5 3%
Private Sector
Employee
45 30%
Self-Employee 25 17%
Businessmen 50 33%
Commodity Futures
Advisor
25 17%
Others 0 0%
FindingsFrom the above table and chart, it can be seen that 3% of the respondents were government
employees, 30% were private sector employee, 17% were Self-Employed and 33% were
businessmen, 17% were Commodity futures advisors.
Interpretation
It can be concluded that mainly businessmen and private sector employees invest incommodities.
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INCOME PROFILEIncome Group No. of
Responden
ts
Percentag
e
Below Rs. 4
Lakh
55 37%
Rs. 4 10 Lakh 90 60%
Rs. 10 25
Lakh
5 3%
Above Rs. 25
Lakh
0 0%
FindingsFrom the above table and chart, it can be seen that 37% of the respondents were in the
income group of below Rs. 4 lakh, 60% were in the income group of Rs. 4-10 lakh, and 3%
were in the income group of Rs. 10-25 lakh.
InterpretationIt can be concluded that most of the people who have invested commodity futures are in
the income group of Rs.4-10 lakhs.
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What is the amountyou have
invested in commodity futures?Amount(Rupees
)
No. Of
Responde
nts
Percentag
e
Rs. 2 lakh 40 27%
Rs. 2-3 lakh 75 50%
Rs. 3-5 lakh 30 20%
Above Rs.5lakh 5 3%
FindingsIt can be seen that out of the investors, 27% of them had invested Rs. 2 lakhs, 50% of them
had invested between Rs. 2-3 lakhs, 20% had invested between Rs. 3-5 lakhs and 3% had
invested above Rs. 5 lakhs.
InterpretationIt can be concluded that most of the investors had invested between Rs. 2-3 lakhs in
commodity futures.
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Whattype oftrade do you
prefer the most?Particulars No. Of
Responden
ts
Percenta
ge
Short Term
Positions
75 50%
Mediumterm 45 30%
Longterm
positions
30 20%
FindingsIt can be seen that out of the investors in commodity futures, 50% of them prefer short-
term positions, 30% of them preferred medium term positions and 20% preferred long-term
positions.
Interpretation
It can be concluded that most of the investors trading in commodity futures prefer short-term positions.
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Do you thinkthere is future in
commodity future trading, in the
present economy?Particulars No. Of
Respondents
Percenta
ge
Yes 110 73%
No 25 17%
Cant say 15 10%
FindingsIt can be seen that, 73% of the investors feel that there is future in commodity futures
trading in the present economy, 17% of them feel that there is no future in commodity futures,
10% of the investors were unable to come to a conclusion.
InterpretationsIt can be concluded that most of the investors feel that there is future in commodity future
trading in the present economy.
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Do you, as a client use
Fundamental/Technical Analysis while giving
an order?Particulars No. Of
Respondent
s
Percentage
Yes 100 67%
No 50 33%
FindingsFrom the above table and chart, it can be seen that 76% of the investors use
Fundamental/technical Analysis while giving an order to trade in commodity futures, and 24% do
not any analysis tools.
InterpretationIt can be concluded that most of the investors use Fundamental/ Technical Analysis when
giving an order while trading in commodity futures.
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Whichtype oftrader you are?
Particulars No. Of
Responden
ts
Percentage
Hedgers 65 43%
Speculator 30 20%
Arbitrager 55 37%
FindingsFrom the above table and chart, it can be seen that most of respondents are hedger and
arbitrager
InterpretationIt can be concluded that most of the respondents are hedgers
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FINDINGS
Person between age of 20-40 years are more active player inthe commodity trading and 10-30 % of their income are
invested in market. Most of them believe that return derived
from commodity are good and reasonable.
It has been seen that about 67% investor are doingfundamental technical analyses.
The commodity futures markets are experiencing a good
growth in the recent past.
This can be emphasized by the fact that the trading volume ofmost commodities is increasing.
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CONCLUSION Now a days investor become more careful in investment with
considering the factor like global economy, availability of
commodity etc
In the trading system people consider above factor for investment
so we can conclude that investor are more moving towards theexchange traded market.
It can be concluded that one can use commodity futures for the
hedging purposes rather than for the speculative
This can be emphasized by the fact that there has been an increasing
trend in the volume traded in most of the commodities. Thus,commodity futures are a growing market.
from all the above conclusions of it can be concluded, commodity
futures can be used as a risk reduction and a sound investment
instrument
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THANK YOU