“COMPARATIVE ANALYSIS OF EQUITY MARKET AND GOLD MARKET”
Presented By: Ankur Shrivastava 12BSP0186
INTRODUCTION:-
In our share broking industry there are many investor who are investing
money in various investment options , but the large amount of investment
is done in Equity Market and Gold Market.
The important part of the project was to find out the best investment
options and which market has given good returns. The next part was to
understand the share broking industry and how does it work.
In middle of the project it was found that in relation to Nifty and Gold,
individual stock has given more returns. In this project the analysis is done
between Nifty ,Individual Stock and Gold.
OBJECTIVE :
•To enumerate the returns of gold market and Equity market.
•To formulate that which market has given good returns.
•To find out whether individual stock affects a lot in our investment decisions.
•To find out which investment option is best.
Methodology:
Calculations in the MS-Excel.
Statistical tools used for analysis.
Returns in percentage.
EQUITY MARKET:
The market in which shares are issued and traded, either through
exchanges Also known as the stock market, it is one of the most
vital areas of a market economy because it gives companies access
to capital and investors a slice of ownership in a company with the
potential to realize gains based on its future performance.
DERIVATIVES MARKET
A security whose price is dependent upon or derived
from one or more underlying assets. Derivatives are
generally used as an instrument to hedge risk, but
can also be used for speculative purposes.
Derivatives
Futures Options
ANALYSIS OF NIFTY AND GOLD RETURNS
Gold Nifty
Investment 2000000 2000000
Valuation 8986386 6843452
1000000
3000000
5000000
7000000
9000000
11000000
Nifty and Gold Returns Interpretation :
In this we can see that
within 20 years gold
has given more
returns but there are
various factors for
which the analysis has
been done to find out
the main reason why
nifty has not given
returns.
ANALYSIS OF RETURNS BETWEEN L&T AND GOLD
Gold L&T
Investment 2000000 2000000
Valuation 8986386 19938663
2500000
7500000
12500000
17500000
22500000
Gold and L&T Returns
Axis Title
Interpretation:
We can figure out that the person
who is investing money in L&T; he
has got a good amount of returns.
As we do comparison in numbers
the total valuation of 20 lakhs
investment done in L&T is around
19938663.01 and DIVIDEND the
person has got around 1535253.07.
But in gold the valuation is very low
as compared to this it is only
8986386.91.
ANALYSIS OF SBI AND GOLD RETURNS
GOLD SBI0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
SBI and Gold Returns
VALUATIONINVESTMENT
Interpretation:
We can figure out that the person
who is investing money in SBI;
he has got a good amount of
returns. As we do comparison in
numbers the total valuation of 20
lakhs investment done in SBI is
around 10024088.34 and
DIVIDEND the person has got
around 1170152.27. But in gold
the valuation is very low as
compared to this it is only
8986386.91.
ANALYSIS OF GOLD , NIFTY, L&T AND SBI IN TERMS OF PERCENTAGE AND INCLUDING BONUS SHARES AND DIVIDEND.
GOLD L&T NIFTY SBI
Returns in Percent-age
0.14 0.21 0.12 0.17
3%
13%
23%
Returns in Per-centage
NIFTY GOLD L&T SBI0
5000000
10000000
15000000
20000000
25000000
DIVIDENDVALUATIONINVESTMENT
Interpretation: In returns with percentage we can see that L&T and SBI has given more returns as compare to nifty and gold , it is because of bonus and dividend which is not shown in nifty.
FINDINGS AND CONCLUSION
The result of the study carried out shows that during the most of the period, we
observed that NIFTY has given less returns in comparison to gold but the
important thing is that in the index as discussed above the various factors are not
considered bonus shares, split stocks, dividend etc. so in nifty the full information
is not available to us.
After the analysis of gold and equity it has been find out that individual stock has
given good returns in compare to both. If they are able to bear the risk then they
can invest in individual stocks as they have given good returns.
The relationship of gold is with currency and in India the gold has given good
returns because of currency only.