project report swati-sip

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PROJECT ON A STUDY OF RISK PRECETION OF INVESTORS- A CASE STUDY OFMUMBAI CITY

1INSTITUTE OF PROFESSIONAL EDUCATION AND RESEARCH

INSTITUTE OF PROFESSIONAL EDUCATION AND

RESEARCH

SUMMER PROJECT

A STUDY OF RISK PERCEPTION OF THE INVESTORS:

A CASE STUDY OF MUMBAI CITY

Submitted To: Submitted By:

Dr. Amarjeet Singh Khalsa Swati Tiwari

Trim-3

IPER-PGDM


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CHAPTERISATION

CHAPTER 1: CONCEPTUAL OVERVIEW - 3

CHAPTER 2: RESEARCH METHODOLOGY - 4

2.1 Objective2.2 Methodology2.3 Limitations2.4 Significance

CHAPTER 3: THEORITICAL BACKGROUND - 5

3.1 Capital Market3.2 Equity And Derivatives3.3 Other Financial Instruments Which Are In Market

CHAPTER 4: COMPANY OVERVIEW - 21

CHAPTER 5: DATA ANALYSIS - 25

CHAPTER 6: FINDINGS - 117

QUESTIONNAIRE - 118

BIBILIOGRAPHY - 119

ANNEXURES


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CONCEPTUAL OVERVIEWBeing a PGDM student of Finance specialization my interest is prone towards investment

opportunities. Reason behind choosing this topic is that how different investors put their money

in equity and derivatives and what risk perception they carry in their mindset, and what are the

techniques they adopt to minimize their risk to earn maximum profit out of the principal amount.

The study is based upon stock market broadly about equity and derivatives reason being these

two are mostly traded and mostly known in stock market. In stock market there is a saying

HIGHER RISK HIGHER RETURN;LOWER RISK LOWER RETURN. So investment

opportunities are available for every type of investor but it is upon the investor to look for bestopportunity.

Rationale for selecting this area of equity & derivative is attraction of different kinds of

investors to invest and to face high risk and get high returns. The major findings of the project

are to overview of the comparison of equity cash segment and equity derivative segment,

overview of the equity and F & O segment from May 2011 to July 2011 and comparison of stock

market with other investment instruments.


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RESEARCH METHODOLOGY

2.1 OBJECTIVE:

a) To know the investors risk perception towards investment in stock market.

b) To study risk perception towards equity and derivatives in specific.

2.2 METHODOLOGY:

a) Study on equity and derivative has been done with the help of risk perception of

investors.

b)

A questionnaire has been designed.

c) Convenience Sampling has been done.

d) Responses have been analyzed by the help of Microsoft Excel tools.

e) Interpretations have been drawn by the help of Pivot table and graphical representation.

f) Findings have been given.

2.3 SEGMENTATION:

Segmentation is done on the basis of the occupation, income and age of the people in Mumbai

region.2.3 LIMITATION:

Sample size, period and segmentation might be a limiting factor.

2.3 SIGNIFICANCE:

The study is related to behavioral finance that how an investor takes risk for getting differentreturns, also importance from the point of view that selection of financial instruments i.e., equityand derivatives to maximize return.


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THEROTICAL BACKGROUND

Capital market

Meaning and Concept of Capital Market

Capital Market is one of the significant aspects of every financial market. Hence it is necessary

to study its correct meaning. Broadly speaking the capital market is a market for financial assets

which have a long or indefinite maturity. Unlike money market instruments the capital market

instruments become mature for the period above one year. It is an institutional arrangement to

borrow and lend money for a longer period of time. It consists of financial institutions like IDBI,

ICICI, UTI, LIC, etc. These institutions play the role of lenders in the capital market.

Businessunits and corporate are the borrowers in the capital market. Capital market involves

various instruments which can be used for financial transactions. Capital market provides long

term debt and equity finance for the government and the corporate sector. Capital market can be

classified into primary and secondary markets. The primary market is a market for new shares,

where as in the secondary market the existing securities are traded. Capital market institutions

provide rupee loans, foreign exchange loans, consultancy services and underwriting

SIGNIFICANCE, ROLE OR FUNCTIONS OF CAPITAL MARKET

Like the money market capital market is also very important. It plays a significant role in the

national economy. A developed, dynamic and vibrant capital market can immensely contribute

for speedy economic growth and development.

Let us get acquainted with the important functions and role of the capital market.

1. Mobilization of Savings: Capital market is an important source for mobilizing idle savings

from the economy. It mobilizes funds from people for further investments in the productive
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channels of an economy. In that sense it activates the ideal monetary resources and puts them

in proper investments.

2. Capital Formation: Capital market helps in capital formation. Capital formation is net addition

to the existing stock of capital in the economy. Through mobilization of ideal resources it

generates savings; the mobilized savings are made available to various segments such as

agriculture, industry, etc. This helps in increasing capital formation.

3. Provision of Investment Avenue: Capital market raises resources for longer periods of time.

Thus it provides an investment avenue for people who wish to invest resources for a long

period of time. It provides suitable interest rate returns also to investors. Instruments such as

bonds, equities, units of mutual funds, insurance policies, etc. definitely provides diverse

investment avenue for the public.

4.

Speed up Economic Growth and Development: Capital market enhances production and

productivity in the national economy. As it makes funds available for long period of time, the

financial requirements of business houses are met by the capital market. It helps in research

and development. This helps in, increasing production and productivity in economy by

generation of employment and development of infrastructure.

5. Proper Regulation of Funds: Capital markets not only helps in fund mobilization, but it also

helps in proper allocation of these resources. It can have regulation over the resources so that it

can direct funds in a qualitative manner.

6. Service Provision: As an important financial set up capital market provides various types of

services. It includes long term and medium term loans to industry, underwriting services,

consultancy services, export finance, etc. These services help the manufacturing sector in a

large spectrum.

7. Continuous Availability of Funds: Capital market is place where the investment avenue is

continuously available for long term investment. This is a liquid market as it makes fund

available on continues basis. Both buyers and seller can easily buy and sell securities as they

are continuously available. Basically capital market transactions are related to the stock

exchanges. Thus marketability in the capital market becomes easy.

These are the important functions of the capital market.


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PRIMARY MARKET

Primary Market, also called the new issue market, is the market for issuing new securities. Many

companies, especially small and medium scale, enter the primary market to raise money from thepublic to expand their businesses. They sell their securities to the public through an initial public

offering. The securities can be directly bought from the shareholders, which is not the case for

the secondary market. The primary market is a market for new capitals that will be traded over a

longer period.

In the primary market, securities are issued on an exchange basis. The underwriters, that is, the

investment banks, play an important role in this market: they set the initial price range for a

particular share and then supervise the selling of that share.

Investors can obtain news of upcoming shares only on the primary market. The issuing firm

collects money, which is then used to finance its operations or expand business, by selling its

shares. Before selling a security on the primary market, the firm must fulfill all the requirements

regarding the exchange.

After trading in the primary market the security will then enter the secondary market, wherenumerous trades happen every day. The primary market accelerates the process of capital

formation in a country's economy.

The primary market categorically excludes several other new long-term finance sources, such as

loans from financial institutions. Many companies have entered the primary market to earn profit

by converting its capital, which is basically a private capital, into a public one, releasing

securities to the public. This phenomena is known as "public issue" or "going public."

There are three methods though which securities can be issued on the primary market: rights

issue, Initial Public Offer (IPO), and preferential issue. A company's new offering is placed on

the primary market through an initial public offer.


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SECONDARY MARKET

Secondary Market is the market where, unlike the primary market, an investor can buy a security

directly from another investor in lieu of the issuer. It is also referred as "after market".

The securities initially are issued in the primary market, and then they enter into the secondary

market. All the securities are first created in the primary market and then, they enter into the

secondary market. In the New York Stock Exchange, all the stocks belong to the secondary

market.

In other words, secondary market is a place where any type of used goods is available. In the

secondary market shares are maneuvered from one investor to other, that is, one investor buys an

asset from another investor instead of an issuing corporation. So, the secondary market should be

liquid.

Example of Secondary market:

In the New York Stock Exchange, in the United States of America, all the securities belong to

the secondary market.

Importance of Secondary Market:

Secondary Market has an important role to play behind the developments of an efficient capital

market. Secondary market connects investors' favoritism for liquidity with the capital users' wish

of using their capital for a longer period. For example, in a traditional partnership, a partner cannot access the other partner's investment but only his or her investment in that partnership, even

on an emergency basis. Then if he or she may breaks the ownership of equity into parts and sell

his or her respective proportion to another investor. This kind of trading is facilitated only by the

secondary market


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CONCLUSION ON CAPITAL MARKET

The lack of an advanced and vibrant capital market can lead to underutilization of financial

resources. The developed capital market also provides access to the foreign capital for domestic

industry. Thus capital market definitely plays a constructive role in the over all development of

an economy.

EQUITYANDDERIVATIVES

Equity

Equities are a type of security that represents the ownership in a company. Equities are traded(bought and sold) in stock markets. Alternatively, they can be purchased via the Initial Public

Offering (IPO) route, i.e. directly from the company. Investing in equities is a good long-term

investment option as the returns on equities over a long time horizon are generally higher than

most other investment avenues. However, along with the possibility of greater returns comes

greater risk.

Shares or stock options in a company entitle the buyer the ownership rights in a company. As a

unit of ownership the stock/share holder gets a voting right in the company. The total of these

shares is what contributes to the capital of the company.

Equity shares are the equally divided capital of a company. Total capital contribution for a

company comprises of investments through equity share holdings by small and big investors.

The investors who have a stake in a company are referred to as shareholders. The equity shares

are therefore documents issued by a company and floated in the open market for purchase by

shareholders which entitle them to be one of the owners of the company.

The profits of equity shareholders depend on the profit making capability of the company that

they have invested in. In a situation where the company has made huge profits the benefits are


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passed over to the equity share holders by way of dividends. The equity shareholders also enjoy

voting rights in the company

Equity shares are those shares which are ordinary in the course of company's business. They are

also called as ordinary shares. These share holders do not enjoy preference regarding payment

ofdividend and repayment of capital. Equity shareholders are paid dividend out of the profits

made by a company. Higher the profits, higher will be the dividend and lower the profits, lower

will be the dividend.

Features of Equity Shares:

(1) Owned capital: Equity share capital is owned capital because it is the money of the

shareholders who are actually the owners of the company.

(2)Fixed value or nominal value: Every share has fixed value or a nominal value. For example,

the price of a share is Rs. 10/- which indicates a fixed value or a nominal value.

(3) Distinctive number: Every share is given a distinct number just like a roll number for the

purpose of identification.

(4) Attached rights: A share gives its owner the right to receive dividend, the right to vote, the

right to attend meetings, the right to inspect the books of accounts.

(5) Return on shares: Every shareholder is entitled to a return on shares which is known as

dividend. Dividend depends on the profits made by a company. Higher the profits, higher will be

the dividend and vice versa.

(6) Transfer of shares: Equity shares are easily transferable, that is if a person buys shares of aparticular company and he does not want them, he can sell them to any one, thereby transferring

the shares in the name of that person.

(7) Benefit of right issue: When a company makes fresh issue of shares, the equity shareholders
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are given certain rights in the company. The company has to offer the new shares first to the

equity shareholders in the proportion to their existing share holding. In case they do not take up

the shares offered to them, the same can be issue to others. Thus, equity shareholders get the

benefits of the right issue.

(8) Benefit of Bonus shares: Joint stock companies which make huge profits, issue bonus shares

to their ordinary shareholders out of the accumulated profits. These shares are issued free of cost

in proportion to the number of existing equity share holding. In case they do not take up the

shares offered to them, the same can be issued to others. Thus, equity shareholders get the

benefits of the right issue.

(9) Irredeemable: Equity shares are always irredeemable. This means equity capital is not

returnable during the life time of a company.

(10)Capital appreciation: The nominal or par value of equity shares is fixed but the market

value fluctuates. The market value mainly depends upon profitability and prosperity of the

company. High rate of dividend is paid with high rate of profit, the shareholders capital is

appreciated through an appreciation in the market value of shares. (i.e. higher the rate of

dividend, higher the market value of the shares.)

Derivatives

A derivative is a financial instrument whose characteristics and value depend upon the

characteristics and value of some underlying asset typically commodity, bond, equity,

currency, index, event etc. Advanced investors sometimes purchase or sell derivatives to

manage the risk associated with the underlying security, to protect against fluctuations in

value, or to profit from periods of inactivity or decline. Derivatives are often leveraged, such

that a small movement in the underlying value can cause a large difference in the value of the

derivative.
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The term "Derivative" indicates that it has no independent value, i.e. its value is entirely

"derived" from the value of the underlying asset. The underlying asset can be securities,

commodities, bullion, currency, live stock or anything else. In other words, Derivative

means a forward, future, option or any other hybrid contract of pre determined fixed

duration, linked for the purpose of contract fulfillment to the value of a specified real or

financial asset or to an index of securities.

With Securities Laws (Second Amendment) Act,1999, Derivatives has been included in

the definition of Securities. The term Derivative has been defined in Securities

Contracts (Regulations) Act, as:-

A Derivative includes: -

a. A security derived from a debt instrument, share, loan, whether secured or unsecured,

risk instrument or contract for differences or any other form of security;

b. A contract which derives its value from the prices, or index of prices, of underlying

securities;

Derivatives are usually broadly categorized by:

The relationship between the underlying and the derivative (e.g. forward, option,

swap)

The type of underlying (e.g. equity derivatives, foreign exchange derivatives and

credit derivatives)

The market in which they trade (e.g., exchange traded or over-the-counter).

Futures

A financial contract obligating the buyer to purchase an asset, (or the seller to sell an asset),

such as a physical commodity or a financial instrument, at a predetermined future date and

price. Futures contracts detail the quality and quantity of the underlying asset; they arestandardized to facilitate trading on a futures exchange. Some futures contracts may call for

physical delivery of the asset, while others are settled in cash. The futures markets are

characterized by the ability to use very high leverage relative to stock markets.

Some of the most popular assets on which futures contracts are available are equity stocks,


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indices, commodities and currency.

Options

A financial derivative that represents a contract sold by one party (option writer) to anotherparty (option holder). The contract offers the buyer the right, but not the obligation, to buy

(call) or sell (put) a security or other financial asset at an agreed-upon price (the strike

price) during a certain period of time or on a specific date (exercise date).

A call option gives the buyer, the right to buy the asset at a given price. This 'given price' is

called 'strike price'. It should be noted that while the holder of the call option has a right to

demand sale of asset from the seller, the seller has only the obligation and not the right. For

example: - if the buyer wants to buy the asset, the seller has to sell it. He does not have a right.

Similarly a 'put' option gives the buyer a right to sell the asset at the 'strike price' to the buyer.

Here the buyer has the right to sell and the seller has the obligation to buy.

So in any options contract, the right to exercise the option is vested with the buyer of the

contract. The seller of the contract has only the obligation and no right. As the seller of the

contract bears the obligation; he is paid a price called as 'premium'. Therefore the price that is

paid for buying an option contract is called as premium.

The primary difference between options and futures is that options give the holder the right to

buy or sell the underlying asset at expiration, while the holder of a futures contract is

obligated to fulfill the terms of his/her contract.

Index Futures and Index Option Contracts

Futures contract based on an index i.e. the underlying asset is the index, are known asIndex Futures Contracts. For example, futures contract on NIFTY Index and BSE-30

Index. These contracts derive their value from the value of the underlying index.

Similarly, the options contracts, which are based on some index, are known as Index

options contract. However, unlike Index Futures, the buyer of Index Option Contracts has


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only the right but not the obligation to buy / sell the underlying index on expiry. Index

Option Contracts are generally European Style options i.e. they can be exercised /

assigned only on the expiry date.

An index, in turn derives its value from the prices of securities that constitute the index

and is created to represent the sentiments of the market as a whole or of a particular

sector of the economy. Indices that represent the whole market are broad based indices

and those that represent a particular sector are sectoral indices.

In the beginning futures and options were permitted only on S&P Nifty and BSE Sensex.

Subsequently, sectoral indices were also permitted for derivatives trading subject to

fulfilling the eligibility criteria. Derivative contracts may be permitted on an index if 80%

of the index constituents are individually eligible for derivatives trading. However, no

single ineligible stock in the index shall have a weightage of more than 5% in the index.

The index is required to fulfill the eligibility criteria even after derivatives trading on the

index has begun. If the index does not fulfill the criteria for 3 consecutive months, then

derivative contracts on such index would be discontinued.

By its very nature, index cannot be delivered on maturity of the Index futures or Index

option contracts therefore, these contracts are essentially cash settled on Expiry.

OTHERINSTRUMENTSTRADEDINTHEMARKETThere are various other financial instruments which are traded in the market some are as

follows:-

COMMODITY

Commodities are products that are found naturally or are grown. Gold, lumber, cattle, platinum,

wheat, cotton, orange juice, oil, sugar and pork bellies are all commodities.

Commodities trading are a sophisticated form of investing. It is similar to stock trading but

instead of buying and selling shares of companies, an investor buys and sells commodities. Like

stocks, commodities are traded on exchanges where buyers and sellers can work together to

either get the products they need or to make a profit from the fluctuating prices.


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Many industries need commodities to run their business and buy and sell commodities in the

marketplace. For example, clothing manufacturers need cotton, builders need lumber, and

restaurants and supermarkets need beef.

Size of the market

The trading of commodities consists of direct physical trading and derivatives trading. Exchange

traded commodities have seen an upturn in the volume of trading since the start of the decade.

This was largely a result of the growing attraction of commodities as an asset class and a

proliferation of investment options which has made it easier to access this market.

The global volume of commodities contracts traded on exchanges increased by a fifth in 2010,

and a half since 2008, to around 2.5 billion million contracts. During the three years up to the

end of 2010, global physical exports of commodities fell by 2%, while the outstanding value of

OTC commodities derivatives declined by two-thirds as investors reduced risk following a five-

fold increase in value outstanding in the previous three years. Trading on exchanges in China and

India has gained in importance in recent years due to their emergence as significant commodities

consumers and producers. China accounted for more than 60% of exchange-traded commodities

in 2009, up on its 40% share in the previous year.

Commodity assets under management more than doubled between 2008 and 2010 to nearly

$380bn. Inflows into the sector totalled over $60bn in 2010, the second highest year on record,

down from the record $72bn allocated to commodities funds in the previous year. The bulk of

funds went into precious metals and energy products. The growth in prices of many commodities

in 2010 contributed to the increase in the value of commodities funds under management.

COMMODITY TRADING

Spot trading

Spot trading is any transaction where delivery either takes place immediately, or with a

minimum lag between the trade and delivery due to technical constraints. Spot trading normally

involves visual inspection of the commodity or a sample of the commodity, and is carried out in


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markets such as wholesale markets. Commodity markets, on the other hand, require the existence

of agreed standards so that trades can be made without visual inspection.

Forward contracts

A forward contract is an agreement between two parties to exchange at some fixed future date a

given quantity of a commodity for a price defined today. The fixed price today is known as

the forward price.

Futures contracts

A futures contract has the same general features as a forward contract but is transacted through a

futures exchange.

Commodity and futures contracts are based on whats termed forward contracts. Early on these

forward contracts agreements to buy now, pay and deliver later were used as a way of

getting products from producer to the consumer. These typically were only for food andagricultural products. Forward contracts have evolved and have been standardized into what we

know today as futures contracts. Although more complex today, early forward contracts for

example, were used for rice in seventeenth century Japan. Modern forward, or futures

agreements, began in Chicago in the 1840s, with the appearance of the railroads. Chicago, being

centrally located, emerged as the hub between Midwestern farmers and producers and the east

coast consumer population centers.

In essence, a futures contract is a standardized forward contract in which the buyer and the seller

accept the terms in regards to product, grade, quantity and location and are only free to negotiatethe price.

Hedging

Hedging, a common practice of farming cooperatives, insures against a poor harvest by

purchasing futures contracts in the same commodity. If the cooperative has significantly less of

its product to sell due to weather or insects, it makes up for that loss with a profit on the markets,

since the overall supply of the crop is short everywhere that suffered the same conditions.

Delivery and condition guarantees

In addition, delivery day, method of settlement and delivery point must all be specified.Typically, trading must end two (or more) business days prior to the delivery day, so that the

routing of the shipment can be finalized via ship or rail, and payment can be settled when the

contract arrives at any delivery point.


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INITIAL PUBLIC OFFER (IPO)

An initial public offering (IPO), referred to simply as an "offering" or "flotation", is when a

company (called the issuer) issues common stockor shares to the public for the first time. Theyare often issued by smaller, younger companies seeking capital to expand, but can also be done

by large privately owned companies looking to become publicly traded.

In an IPO the issuer obtains the assistance of an underwriting firm, which helps determine what

type ofsecurity to issue (common or preferred), best offering price and time to bring it to market.

REASONS FOR LISTING

When a company lists its securities on a public exchange, the money paid by investors for the

newly-issued shares goes directly to the company (in contrast to a later trade of shares on the

exchange, where the money passes between investors). An IPO, therefore, allows a company to

tap a wide pool of investors to provide it with capital for future growth, repayment of debt or

working capital. A company selling common shares is never required to repay the capital to

investors.

Once a company is listed, it is able to issue additional common shares via a secondary offering,

thereby again providing itself with capital for expansion without incurring any debt. This ability

to quickly raise large amounts of capital from the market is a key reason many companies seek to

go public.

There are several benefits to being a public company, namely:

Bolstering and diversifying equity base

Enabling cheaper access to capital

Exposure, prestige and public image

Attracting and retaining better management and employees through liquid equity participation

Facilitating acquisitions

Creating multiple financing opportunities: equity, convertible debt, cheaper bank loans, etc.
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Multinational IPOs may have many syndicates to deal with differing legal requirements in both

the issuer's domestic market and other regions. For example, an issuer based in the E.U. may be

represented by the main selling syndicate in its domestic market, Europe, in addition to separate

syndicates or selling groups for US/Canada and for Asia. Usually, the lead underwriter in the

main selling group is also the lead bank in the other selling groups.

Because of the wide array of legal requirements and because it is an expensive process, IPOs

typically involve one or more law firms with major practices in securities law, such as the Magic

Circle firms of London and the white shoe firms of New York City.

Public offerings are sold to both institutional investors and retail clients of underwriters. A

licensed securities salesperson (Registered Representative in the USA and Canada ) selling

shares of a public offering to his clients is paid a commission from their dealer rather than their

client. In cases where the salesperson is the client's advisor it is notable that the financial

incentives of the advisor and client are not aligned.

In the US sales can only be made through a final Prospectus cleared by the Securities and

Exchange Commission.

Investment Dealers will often initiate research coverage on companies so their Corporate

Finance departments and retail divisions can attract and market new issues.

The issuer usually allows the underwriters an option to increase the size of the offering by up to

15% under certain circumstance known as the green shoe or overallotment option.

CURRENCY MARKET

Overview

Currently in India, there are 3 major exchanges offering Currency future trading NSE, MCX-

SX & USE . SMC Global Securities is a trading cum clearing member of all these exchanges for

the currency segment. We believe in the tremendous potential of currency future to become a

dominant force of the Indian financial market with a turnover which can outperform even equity

and commodity segment. We firmly believe that wider market participation will bring more

strength to the market & this can be achieved through disseminating education & information
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among various market participants. For us, currency is not just any other segment of business; it

is "the business of future".


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COMPANY OVERVIEW

ABOUT EDELWEISS

Edelweiss Capital is a financial services company based in Mumbai, India. Edelweiss Capital

Limited provides investment banking, institutional equities, private client broking, asset

management, wealth management, insurance broking and wholesale financing services to

corporate, institutional and high net worth individual clients. It operates from 43 other offices in

19 Indian cities. Since its commencement of business in 1996, it has grown into a diversified

Indian financial services company organized under agency and capital business lines operated by

the Company and its thirteen subsidiaries.

SENIOR MANAGEMENT TEAM

Rashesh Shah

Chairman & CEO

Deepak Mittal

CEO, Edelweiss Tokio Life InsuranceCompany Limited

Naresh Kothari

President & Head, Equities Capital Market

Vikas Khemani

President & Head, Institutional Equities

Venkat Ramaswamy

Executive Director

Himanshu Kaji

President & Group COO

Rujan Panjwani

President & Head, Treasury

Ravi Bubna

President & Head, Wholesale Financing
http://www.edelcap.com/AboutUs/SrManagementTeamContent.aspx?ReportID=3DDDCB71-04A0-4110-AD59-950BD846596E&PageType=Ihttp://www.edelcap.com/AboutUs/SrManagementTeamContent.aspx?ReportID=3DDDCB71-04A0-4110-AD59-950BD846596E&PageType=Ihttp://www.edelcap.com/AboutUs/SrManagementTeamContent.aspx?ReportID=3DDDCB71-04A0-4110-AD59-950BD846596E&PageType=Ihttp://www.edelcap.com/AboutUs/SrManagementTeamContent.aspx?ReportID=3DDDCB71-04A0-4110-AD59-950BD846596E&PageType=Ihttp://www.edelcap.com/AboutUs/SrManagementTeamContent.aspx?ReportID=3DDDCB71-04A0-4110-AD59-950BD846596E&PageType=Ihttp://www.edelcap.com/AboutUs/SrManagementTeamContent.aspx?ReportID=3DDDCB71-04A0-4110-AD59-950BD846596E&PageType=Ihttp://www.edelcap.com/AboutUs/SrManagementTeamContent.aspx?ReportID=3DDDCB71-04A0-4110-AD59-950BD846596E&PageType=Ihttp://www.edelcap.com/AboutUs/SrManagementTeamContent.aspx?ReportID=3DDDCB71-04A0-4110-AD59-950BD846596E&PageType=Ihttp://www.edelcap.com/AboutUs/SrManagementTeamContent.aspx?ReportID=3DDDCB71-04A0-4110-AD59-950BD846596E&PageType=Ihttp://www.edelcap.com/AboutUs/SrManagementTeamContent.aspx?ReportID=3DDDCB71-04A0-4110-AD59-950BD846596E&PageType=Ihttp://www.edelcap.com/AboutUs/SrManagementTeamContent.aspx?ReportID=3DDDCB71-04A0-4110-AD59-950BD846596E&PageType=Ihttp://www.edelcap.com/AboutUs/SrManagementTeamContent.aspx?ReportID=3DDDCB71-04A0-4110-AD59-950BD846596E&PageType=Ihttp://www.edelcap.com/AboutUs/SrManagementTeamContent.aspx?ReportID=3DDDCB71-04A0-4110-AD59-950BD846596E&PageType=Ihttp://www.edelcap.com/AboutUs/SrManagementTeamContent.aspx?ReportID=3DDDCB71-04A0-4110-AD59-950BD846596E&PageType=Ihttp://www.edelcap.com/AboutUs/SrManagementTeamContent.aspx?ReportID=3DDDCB71-04A0-4110-AD59-950BD846596E&PageType=Ihttp://www.edelcap.com/AboutUs/SrManagementTeamContent.aspx?ReportID=3DDDCB71-04A0-4110-AD59-950BD846596E&PageType=I


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APPROACH

Client Focus

Edelweiss is driven by the emphasis they place on building long-term relationships with clients.

They work closely with clients to equip them with the ability to address large, fast-growing

market opportunities. Their emphasis on long-term relationships also means that they have a

significant ongoing involvement with almost all of the clients that they work with.

Execution Orientation

They focus obsessively on delivering high quality execution through their experienced team of

professionals. Each team is led by senior personnel and is highly research and ideas driven. They

place strong emphasis on confidentiality and integrity in a sensitive business environment.

Culture

Edelweiss fosters a culture that is entrepreneurial and results-driven and that emphasizes

teamwork and intellectual rigour. Team is encouraged to display higher levels of initiative, drive,

and hunger for learning and taking on additional responsibility.

Professional Integrity

Company places a strong emphasis on confidentiality, honesty and integrity in their business

dealings. They expect their people to maintain high ethical standards, both in their professional

and personal lives. They strive to be fair in all our dealings.

Research Driven

All their businesses are built on a research and analytics foundation. Their understanding of

underlying market trends and strong analytical expertise has resulted in a demonstrated ability toidentify emerging trends and themes early. They seek to provide the highest quality research and

investment opinions to the clients.


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BUSINESS PRINCIPLES

Ideas create, values protect is how we define what Edelweiss believes in. But when we sayvalues protect what do we mean? Heres a handy guide to the values and principles we will live

by and live up to.

We will be a Thinking Organization. We will constantly bring thought to everything we do.

Our clients and our own success depends on our ability to use greater ideation and more

imagination in our approach.

We will be fair to our clients, our employees and all stake holders. We want our clients and our

employees to be richer for their relationship with us.

We will take care of our People seriously. Our policies in spirit and in letter will ensure

transparency and equal opportunity for all. We will go beyond the normal goals of attracting,

recruiting, retaining and rewarding fine talent: We will ensure that every individual in Edelweiss

has an opportunity to achieve their fullest potential.

We will operate as a Partnership, internally and externally. Though individuals are very often

brilliant, we believe teamwork and collaboration will always ensure a better and more balanced

organization. We will also treat our clients as partners and show them the same respect and

consideration that we would toward our internal team members.

We will focus on the Long Term. Though the world will change a lot in the coming years and

our assumptions for the future may not hold up, we will reflect on the long-term implications ofour actions. Even when making short-term decisions we will be aware of the long-term

implications.


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We will focus on Growth for our clients, employees and shareholders.

Our Reputation and image is more important than any financial reward. Reputation is hard to

build and even harder to rebuild. Reputation will be impacted by our ability to think for our

clients, maintain confidentiality and by our adherence to our value system.

We will Obey and Comply with the rules of the land. We will maintain the highest standard of

integrity and honesty. When we are unclear we will seek clarifications.

We will respect Risk. Our business is going to be a constant challenge of balancing risk and

reward. Our ability to constantly keep one eye on risk will guide us through this fine balance.

Our Financial Capital is a critical resource for growth. We will endeavour to grow, protect, and

use our financial capital wisely.

CLIENT ADVISORY SERVICE

At Edelweiss Client Advisory Services, their team is driven not just by the quality of their ideas,

but also professional ethics and integrity. They take pride in our philosophy of offering advice

which is in the best interest of their clients. Their emphasis on building long term relationship

ensures that they work closely with their clients empowering them to gain from market

opportunities through our online portalwww.edelweiss.in

www.edelweiss.inis a product that offers a unique online investment experience that is intuitive,

information rich and a hassle-free way to trade online. It defines the next level in online tradingtechnology. It enables intelligent investing with market strategies custom suited to the clients

investment profile and current portfolio.
http://www.edelweiss.in/http://www.edelweiss.in/http://www.edelweiss.in/http://www.edelweiss.in/http://www.edelweiss.in/http://www.edelweiss.in/http://www.edelweiss.in/


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DATA ANALYSIS

The population of Mumbai has been analyzed on various factors on the basis of different

questions which are as follows:

ANALYSIS ON THE BASIS OF OCCUPATION:

QUESTION-1

OCCUPATION

COVER

ORDER DELIVERY INTRADAY PORTFOLIO

Grand

Total

Business Men 7 5 6 7 25

Others 5 11 7 2 25

Private

Service 6 11 6 2 25

Public Service 4 13 5 3 25

Grand Total 22 40 24 14 100

Most of the business men in Mumbai like portfolio and cover order, type of trading, as it can beseen through this chart that comparatively many people in Mumbai like to invest on portfolio and

28%

20%24%

28%

Business MenCOVER ORDER DELIVERY INTRADAY PORTFOLIO

1) How do you trade in market?

a) Intraday b) Delivery c) Cover order d) Portfolio


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cover order. Around 20% of investors like to trade in intraday and 24% prefer to invest theirmoney for long term there fore they use to trade in delivery.

28% of business men like to trade in cover order as they want to trade with the

help of exposure they are getting from their broking firm and 28% trades in

portfolio as they have large amount of money to invest so they prefer PMS toinvest their amount.

20% of investors trades in delivery as they want to invest their amount for long

term and 24% invest there money for trading so they use to invest their money in

intraday.

Others, including senior citizen and students most of the senior citizen believes toinvest there money for long term so they use to invest there money for delivery.The people who are students and doing part time job prefer to trade in intraday so thatto make some sort of investment. So 44% of the people likes to trade in delivery andaround 28% of the people use to trade in intraday.

20%

44%

28%

8%

Others

COVER ORDER DELIVERY INTRADAY PORTFOLIO


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The person who are in private service, most of them trades in delivery and only few percentageof investors like to trade on portfolio.

8% of the investors invest in portfolio because they dont have huge amount to invest.

Most of the private service people believe in investing their money for long term so they

trade in delivery so, 44% of the people invest there money in delivery.

The people who are in public service likes to trade in delivery because they invest there moneyfor long term so that they can have some future investment. Only few people those who are inpublic service like to do intraday.

24%

44%

24%

8%

Private Service


16%

52%

20%

12%

Public Service



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QUESTION-2

OCCUPATION

BOTH EQUITY AND

DERIVATIVES DERIVATIVES EQUITY SHARE OTHERS

GRAND

TOTAL

Business Men 3 3 19 25

Others 2 5 18 25

PrivateService 3 5 15 2 25


Grand Total 13 19 63 5 100

Most of the businessmen prefer equity share as compare to derivatives. Only 12% of the

businessmen prefer derivatives and both equity and derivatives. They want to invest for long

term that is the reason they prefer derivatives for trading.

12%

12%

76%

0%

Business Men

BOTH EQUITY AND DERIVATIVES DERIVATIVES EQUITY SHARE OTHERS

2) Whats your preferable area of investment?

a) Equity share b) Derivatives

c) Both equity and derivatives d) Others


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Other like senior citizen and students also prefer equity share as compare to derivatives and otherfinancial products. They prefer equity shares more as compare to both equity and derivatives asthey can invest small amount in equity share but to invest in others or derivatives it involves lotsof amount to invest. Only 20% invest in derivatives.

Even private sector people prefer to trade in equity share. 60% of the people according to theresearch say that they find equity share more preferable then derivates and other instruments.20% of private sector working people say that they trade in derivatives as they have long terminvestment planning for future.

8%

20%

72%

0%

Others


12%

20%

60%

8%

Private Service



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For the public service people there is a mixed kind of a response regarding equity share andderivates but then too most of them prefer equity when compared to derivatives or other financialproducts. Even 12% of them feels that its better to invest both equity and derivatives. 24% ofthem prefer derivates.

QUESTION-3

Occupation Both taxes saving & return

Only

saving RETURN

Tax

saving GRAND TOTAL

Business

Men 6 11 8 25

Others 7 16 2 25

Private

Service 7 15 3 25

Public

Service 7 1 14 2 24

Grand Total 27 1 56 15 99

20%

24%44%

12%

Public Service


3) Whats your purpose of investment?

a) Tax saving b) Return c) Only saving

d) Both taxes saving & return


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Most of the people among business men invest there money to get the return out of theirinvestment. Few expect both tax saving and also they can get return out of their investment.According to the research 44% of the business class people invest there money to get return outof there investments and 34% people invest just for saving there taxes.

According to the research others like senior citizen and students or youngsters invest theremoney to get return out of there investments. 28% of them feels that they should get both tax andsavings from there investments.

24%

0%

44%

32%

Business Men

Both taxes saving & return Only saving RETURN Tax saving

28%

0%

64%

8%

Others



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For the public service class employees return is important whenever they invest there money.Some people those who are in public service wants to have both i.e. return and tax saving.Around 29% of public service class people expect both things out of there investments.

More then half of the people think that they should get return out of there investments. Most of

the people think that they should save taxes and they should save return when ever they madeany investments. Around 60% of the people think that they invest there money to get return outof this.

29%

4%59%

8%

Public Service


28%

0%

60%

12%

Private Service



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QUESTION-4

OCCUPATION

10-15

years

1-3

years

3-5

years Daily

GRAND

TOTAL


Others 13 12 25

Private Service 12 13 25Public Service 8 5 3 9 25

Grand Total 8 23 22 47 100

Most of the business men prefer the time horizon in which they can trade daily; they use to tradein intraday. Few think that they can made there investment and can hold there investment foraround 1-3 years and even 3-4 years. They think that they can wait for long time so that they canget proper return out of there investments.

0%

20%

28%

52%

Business Men

10-15 years 1-3 years 3-5 years Daily

4) What is your time horizon of investment?

a) 1-3 years b) 3-5 years c) 5-10years

d) Daily


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Others like senior citizen and youngsters especially students believes that they should hold there

investments for around 1-3 years. Youngsters or students believe that they should trade daily so

that they can get the return daily out of there investments.

The time horizon which most of the private sector people prefer is more of daily trading i.e. is

intraday. And also most of the people feel that 3-5 years is the best time horizon for the

investment for long term.

0%

52%

0%

48%

Others


0% 0%

48%

52%

Private Service



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QUESTION-5

OCCUPATION HIGH LOW MODERATE

GRAND

TOTAL


Others 10 6 9 25

Private

Service 12 6 7 25

Public Service 8 6 11 25

Grand Total 38 28 34 100

Most of the business men think that they can bear low risk. But few business men can bear a high

risk because being in a business has given them an idea that how much risk they can bear. And

few of them can bra moderate risk.

32%

40%

28%

Business Men

HIGH LOW MODERATE

5) What is your risk appetite?

a) Low b) Moderate c) High


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Around 40% business men can bear high risk and 28% of them can bear moderate risk and 32%

believes that they can bear low risk in there investments.

Others like students or senior citizen who are investing there money, most of them can bear high

risk i.e. around 40% and comparatively very few can bear low risk i.e. 24%. The person those

who can bear high risk are mostly students or the one who are youngsters and has just started

earning.

Only 36% can bear moderate risk i.e. neither low nor high.

40%

24%

36%

Others

HIGH LOW MODERATE

48%

24%

28%

Private Service

HIGH LOW MODERATE


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Mostly the person with private service is able to bear high risk as they expect more returns

therefore they have the capability of taking high risk. And rest of them i.e. 24% and around 28%

people are able to bear low risk and moderate risk.

Maximum of them can bear high risk for there investments.

According to the research most of the people who are in public service can bear moderate risk

i.e. neither high nor low. And few of them i.e. around 32% of the public service class people can

bear high risk.

44% of them can bear moderate risk they want to invest there money on safer place where there

is not much risk. And 28% people believes that they can bear low risk whenever they made any

investments.

32%

24%

44%

Public Service

HIGH LOW MODERATE

6) What proportion of your investment contributes to equity share?

a) Up to 10% b) 10-20%

c) 20-30% d) More than 30


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QUESTION-6

OCCUPATION 10-20% 20-30%

More than

30 Up to 10%

GRAND

TOTAL

Business Men 3 15 5 2 25Others 4 12 5 4 25

Private

Service 3 6 10 6 25


Grand Total 13 45 26 16 100

Most of the investors who are business men contributes up to 20 -30% of investment into equity

shares. Above all 20% of them are contributing more then 30% of there money into equity

shares. Only 8% of the business men are contributing there investments into equity shares.

12%

60%

20%

8%

Business Men

10-20% 20-30% More than 30 Up to 10%


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According to the research the people who are senior citizen and students contribute maximum

part of investing in equity i.e. around 48%. Around 20% of them are contributing more then 30%

in equity shares.

Only 16% of them are contributing there investment amount up to 10% and between 10 -20%.

The public service class people mostly contributes 20-30% of there investments into equity

shares. Few of them invest more then 30% of there investments into equity shares.

16%

48%

20%

16%

Others

10-20% 20-30% More than 30 Up to 10%

12%

48%

24%

16%

Public Service

10-20% 20-30% More than 30 Up to 10%


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Very few public service class people invest up to 10% and between 10-20% of there investment

amount into equity shares.

Private Service employees are more into equity shares. Around 40% of the private service

employee are contributing there investments into equity shares.

24% of the people contributes between 20-30% and up to 10%of there investments into equity

shares.

12%

24%

40%

24%

Private Service

10-20% 20-30% More than 30 Up to 10%

7) What proportion of your investment contributes to derivatives?

a) Up to 10% b) 10-20%

c) 20-30% d) More than 30


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QUESTION-7

OCCUPATION 10-20% 20-30%

more than

30

UP TO

10%

GRAND

TOTAL


Others 4 7 10 4 25

PrivateService 8 9 7 1 25


Grand Total 24 40 27 9 100

Most of the amount of investment done by business men constitutes of derivatives.

Around 48% of business men invest around 20-30% of there money into equity shares. 10-20%

of the investment contributes in derivatives of the business class people.

28%

48%

20%

4%

Business Men

10-20% 20-30% more than 30 UP TO 10%


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Around 40% of the people who are senior citizens or student are contributing more then 30% of

the share on there income in derivatives.

And after that most of them contributes around 20-30% of there investments in to derivatives i.e.

about 28% people are investing there 20-30% of there money into derivatives.

About 48% of the people are investing there 20-30% of there money into derivatives, most of

them contributes around 20-30% of there investments in to derivatives. And 20% of the public

service class people invest more then 30% and between 10-20% of there money into derivatives.

16%

28%

40%

16%

Others

10-20% 20-30% more than 30 UP TO 10%

20%

48%

20%

12%

Public Service

10-20% 20-30% more than 30 UP TO 10%


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According to the research public service class people are majorly contributing around 20-30%

and more then 30% of there money into derivatives. They think that they can get maximum

return when they invest in derivatives. Only 4% people are there who contributes just 10% of

there investments into derivatives.

QUESTION-8

OCCUPATION DAILY Monthly Occasionally WEEKLY

GRAND

TOTAL


Others 15 3 1 6 25

Private

Service 16 4 5 25Public Service 16 2 4 3 25

Grand Total 61 12 8 19 100

32%

36%

28%

4%

Private Service

10-20% 20-30% more than 30 UP TO 10%

8) How often do you monitor your investment?

a) Daily b) Weekly

c Monthl d Occasionall


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Most of the business men monitor there investment daily and few of them monitors weekly. Asbusiness men usually use personal computers for there work so this helps them to monitor themdaily or weekly. Few business men who trade in delivery i.e. for long term they trade for longterm.

Others like students or senior citizen monitor there investment daily and few of them monitors

weekly. As they usually use personal computers for there work so this helps them to monitorthem daily or weekly. Few of them who trade in delivery i.e. for long term monitors there

investments monthly or occasionally.

56%

12%

12%

20%

Business Men

DAILY Monthly Occasionally WEEKLY

60%12%

4%

24%

Others



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People who are working in private sector monitors there investment daily and few of them

monitors weekly, around 64% of them are able to monitor there investments weekly As they

usually use personal computers for there work so this helps them to monitor them daily or

weekly. Few of them who trade in delivery i.e. for long term monitors there investments weekly

or monthly.

64%

16%

0%

20%

Private Service


64%8%

16%

12%

Public Service



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People who are working in private sector monitors there investment daily and few of them

monitors weekly, around 64% of them are able to monitor there investments weekly As they

usually use personal computers for there work so this helps them to monitor them daily or

weekly. Few of them who trade in delivery i.e. for long term there investments weekly or

monthly.

QUESTION-9

OCCUPATION RETURN RISK

TIME

PERIOD VOLATILITY GRAND TOTAL


Others 10 6 4 5 25

Private Service 9 5 4 7 25


Grand Total 36 26 16 22 100

9) What factors you consider while investing in Equity?

a) Risk b) Return c) Time period d) Volatility


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Most of the business men consider both return and risk as an important factor when they are

investing in equity. Almost 32% of the business men consider both risk and return. Few of them

also consider time period and volatility of market in consideration while trading in equity.

Most of the Senior citizens or students consider return as an important factor when they are

investing in equity. Almost 40% of them consider return when they invest in derivatives. Few of

them also consider time period and volatility of market in consideration while trading in equity.

32%

32%

20%

16%

Business Men

RETURN RISK TIME PERIOD VOLATILITY

40%

24%

16%

20%

Others



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According to the research public service class people consider return as an important factor when

they are investing in equity. Almost 36% of the public service employee considers return. Few of

them also consider time period and volatility of market in consideration while trading in equity.

36%

28%

12%

24%

Public Service


36%

20%

16%

28%

Private Service



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According to the research private service class people consider return as an important factor

when they are investing in equity. Almost 36% of the private service employee consider return.

Few of them also consider time period and volatility of market in consideration while trading in

equity.

QUESTION-10

OCCUPATION RETURN RISK

TIME

HORIZON VOLATILITY

GRAND

TOTAL


Others 10 4 7 4 25

Private Service 9 7 4 5 25


Grand Total 40 17 21 22 100

10) What factors you consider while investing in Derivatives?

a) Risk b) Return c) Time period d) Volatility


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Most of the business men consider return as an important factor whenever they trade in

derivatives. And according to the research 28% of the business men consider time horizon and

volatility in the market when they invest there money in derivatives.

Only few of them consider risk as an important factor while investing there money into

derivatives.

36%

8%28%

28%

Business Men

RETURN RISK TIME HORIZON VOLATILITY

40%

16%

28%

16%

Others



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Senior citizens and students or youngsters who have just started earning consider return as an

important factor whenever they trade in derivatives. And according to the research 28% of them

considers time horizon when they invest in derivatives. Risk and volatility is also considered by

few investors who trade in derivatives i.e. around 16% of them considers risk and volatility as an

important factor.

Most of the private service people consider return as an important factor whenever they trade in

derivatives. And according to the research 28% of them consider risk when they invest in

derivatives. Time horizon is also considered by few investors who trade in derivatives i.e. around

36%

28%

16%

20%

Private Service



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16% of them considers time horizon as an important factor. 20% of them think that volatility

should be considered as an important factor when they are investing in derivatives.

Most of the public service people consider return as an important factor whenever they trade in

derivatives. And according to the research only 16% of them consider risk when they invest in

derivatives. Time horizon is also considered by few investors who trade in derivatives i.e. around

12% of them considers time horizon as an important factor. 24% of them think that volatility

should be considered as an important factor when they are investing in derivatives

48%

16%

12%

24%

Public Service



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ANALYSIS ON THE BASIS OF AGE:

The person belongs to the age of 18 to 30 usually trades in delivery. They use to prefer there

investments for long term. Around 20-21% of the people who belongs to 18-30 age group invest

in cover order and intraday. Comparatively very few of them trade in portfolio.

22%

43%

21%

14%

Between 18-30


QUESTION-1

AGE

COVER

ORDER DELIVERY INTRADAY PORTFOLIO Grand Total

Between 18-30 3 6 3 2 14

Between 30-40 6 15 6 7 34

Between 40-50 7 8 8 3 26

More then 50 6 11 7 2 26

Grand Total 22 40 24 14 100


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.

The person belongs to the age of 30-40 usually trades in delivery. They use to prefer there

investments for long term. 18% of the people who belongs to 30-40 age group invest in cover

order and intraday. Comparatively very few of them trade in portfolio

18%

44%

18%

20%

Between 30-40



55/121




investments for long term. 31% of the people who belongs to 40-50 age group trade in intraday.

Few of them i.e. around 27% of them are trading in cover order. Comparatively very few of them

trade in portfolio.

27%

31%

31%

11%

Between 40-50



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investments for long term. 31% of the people who belongs to 40-50 age group trade in intraday.

Few of them i.e. around 27% of them are trading in cover order. Comparatively very few of them

trade in portfolio.

QUESTION-2

AGE BOTH EQUITY AND DERIVATIVES DERIVATIVES

EQUITY

SHARE OTHERS

Grand

Total

Between 18-

30 7 6 1 14

Between 30-

40 5 5 23 1 34

Between 40-

50 3 3 18 2 26More then 50 5 4 16 1 26

Grand Total 13 19 63 5 100

23%

42%

27%

8%

More then 50



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50% of the people who belongs to the age between 18-30 like to trade in derivatives and around

25% of them trade in equity and very few of them prefer other financial products that use to

make investment. According to the research, between this age range no one use to prefer invest

in both equity and derivatives.

50%

43%

7%

Between 18-30


15%

15%

67%

3%

Between 30-40



58/121



67% of the people who belongs to the age between 30-40 like to trade in equity share and around

15% of them trade in both equity and derivatives and only in derivatives. Very few of them

prefer other financial products for there investments.

69% of the people who belongs to the age between 40-50 like to trade in equity share and around

12% of them trade in both equity and derivatives and only in derivatives Very few of them prefer

other financial products for there investments.

11%

12%

69%

8%

Between 40-50



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62% of the people who are more then 50 like to trade in equity share and around 15% of them

trade derivatives and 19% in other financial products. Very few of them prefer other financial

products for there investments.

QUESTION-3

AGE Both taxes saving & return Only saving RETURN

Tax

saving

Grand

Total

Between 18-30 4 9 1 14

Between 30-40 11 1 17 5 34

Between 40-50 5 14 7 26

More then 50 8 16 2 26

Grand Total 28 1 56 15 100

19%

15%

62%

4%

More then 50



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The age group who includes the people who belongs to the age from 18 30 expect return from

there investment i.e. about 64% of the people think that return is there main purpose of

investments. Around 29% of the people of this age group both tax saving and return as there

main purpose of investment

Very few of them has tax saving as there main purpose of there investments.

29%

64%

7%

Between 18-30


32%

3%50%

15%

Between 30-40



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The age group who includes the people who belongs to the age from 30-40 expect return from


investments. Around 32% of the people of this age group consider both tax saving and return as

there main purpose of investment

Very few of them has tax saving and only saving as there main purpose of there investments.

The age group who includes the people who belongs to the age from 40-50 expect return from


investments. Around 19% of the people of this age group consider both tax saving and return as

there main purpose of investment

27% of the people of this age group has tax saving and as there main purpose of there

investments.

19%

54%

27%

Between 40-50



62/121



The age group who includes the people who belongs to the age more then 50 expect return from


investments. Around 31% of the people of this age group consider both tax saving and return asthere main purpose of investment

Very few of them has tax saving and only saving as there main purpose of there investments.

QUESTION-4

AGE

10-15

years

1-3

years

3-5

years Daily

Grand

Total

Between 18-

30 5 3 6 14

Between 30-

40 6 15 13 34

Between 40-

50 3 5 3 15 26

More then 50 5 7 1 13 26

Grand Total 8 23 22 47 100

31%

61%

8%

More then 50



63/121



The people from this age group mostly prefer daily time horizon for trading and investing as

sometimes it is easy for them to monitor there investments daily. 36% people think that they

should have a time horizon of 1-3 years for there investments. But most of the people i.e. 43%

from this age group trade daily in the market.

36%

21%

43%

Between 18-30



64/121



The people from this age group mostly prefer 3-5 years of time horizon for trading and investing

and only 18% people think that they should have a time horizon of 1-3 years for there

investments. But in this age group also 38% of them are consider daily time horizon comfortable

for there trading.

18%

44%

38%

Between 30-40


11%

19%

12%

58%

Between 40-5010-15 years 1-3 years 3-5 years Daily


65/121





should have a time horizon of 1-3 years for there investments. But most of the people i.e. 58%from this age group trade daily in the market and around 12% of them like to trade in the time

horizon of 3-5 years.



should have a time horizon of 10-15 years for there investments. But most of the people i.e. 50%

from this age group trade daily in the market and only 4% of them like to trade in the time

horizon of 3-5 years.

19%

27%

4%

50%

More then 5010-15 years 1-3 years 3-5 years Daily


66/121



QUESTION-5

AGE HIGH LOW MODERATE Grand Total

Between 18-30 6 5 3 14

Between 30-40 14 12 8 34

Between 40-50 9 6 11 26

More then 50 9 5 12 26

Grand Total 38 28 34 100

The people from this age i.e. from 18-30 are very energetic in there working and in there

thoughts. Therefore they have a high risk taking ability. 43% of the people can bear high risk in

there investments.36% of them can take low risk in there investments and few of them i.e. round

21% of them think that they can bear moderate risk which is neither high nor low.

43%

36%

21%

Between 18-30

HIGH LOW MODERATE


67/121



The people from this age i.e. from 30-40 have a high risk taking ability. 41% of the people can

bear high risk in there investments.35% of them can take low risk in there investments and few

of them i.e. round 24% of them think that they can bear moderate risk which is neither high nor

low.

41%

35%

24%

Between 30-40

HIGH LOW MODERATE

35%

23%

42%

Between 40-50

HIGH LOW MODERATE


68/121



The people from this age i.e. from 40-50 have a moderate risk taking ability. 35% of the people

can bear high risk in there investments.35% of them can take high risk in there investments and

few of them i.e. around 23% of them think that they can bear low risk which is neither high norlow.

The people from this age i.e. more then 50 have a moderate risk taking ability. 35% of the people

can bear high risk in there investments.35% of them can take high risk in there investments and

few of them i.e. around 23% of them think that they can bear low risk which is neither high nor

low.

35%

19%

46%

More then 50

HIGH LOW MODERATE

QUESTION-6

AGE 10-20% 20-30% More than 30

Up to

10% Grand TotalBetween 18-30 3 4 2 5 14

Between 30-40 6 14 8 6 34

Between 40-50 2 11 10 3 26

More then 50 2 16 6 2 26

Grand Total 13 45 26 16 100


69/121



The age group of 18-30 contribute some of the part of there investment into equity share i.e.

around 14% of the people contribute there income into equity share. Up to 10% of contribution is

there from this age group i.e. around 36% and 29% feels that they contribute 20-30% of there

into equity share.

The age group of 30-40 contribute most of the part of there investment in

project report swati-sip

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