Investment Decision Making Pattern of Investors...

“A STUDY ON INVESTMENT DECISION MAKING PATTERN OF INVESTORS, WITH SPECIAL REFERENCE TO INDIA INFOLINE Ltd.” Dissertation submitted in partial fulfilment of the requirements for the award of the Degree of MASTER OF BUSINESS ADMINISTRATION Of BANGALORE UNIVERSITY

By

Rijabul Islam Talukdar Reg. No. 10YACMA079 Under the guidance of Ms. Sharada Devi Asst. Professor

PRESIDENCY COLLEGE HEBBAL, KEMPAPURA BANGALORE-2011-2012

INVESTMENT DECISION MAKING PATTERN OF INVESTORS

CERTIFICATE OF ORIGINALITY

This is to certify that the project title “a study on investment decision making pattern of investors, with special reference to India Infoline Ltd”. is an srcinal

work of the student and is being submitted in partial fulfilment for the award of the Master‟s Degree in Business Administration of Bangalore University. The report has not been submitted earlier either to this University/Institution for the fulfilment of the requirement of a course of study.

SIGNATURE OF SUPERVISOR

SIGNATURE OF STUDENT

PLACE.......................................

PLACE................................

DATE.........................................

DATE..................................

PRESIDENCY BUSINESS SCHOOL

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DECLARATION

I, RIJABUL ISLAM TALUKDAR, hereby declare that the dissertation entitle “A STUDY ON INVESTMENT DECISION MAKING PATTERN OF INVESTORS, WITH SPECIAL REFERENCE TO INDIA INFOLINE Ltd”, submitted by me in partial fulfilment of the requirement for the award of the Degree of Master of Business Administration to Bangalore university is of my srcinal work and not submitted for the award of any other Degree/Diploma, fellowship of any other similar title. This report is based on my personal opinion hence cannot be referred to any legal purpose.

Place: Bangalore

RIJABUL ISLAM TALUKDAR

Date:

Reg. No. 10YACMA079


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ACKNOWLEDGEMENT

I am grateful to all who have helped me through this project work and made the project a successful one. I would like to acknowledge the help rendered by each of them. I am thankful to the chairman, Mr. Nisar Ahmed, to the vice-chairman, Mr. Sohail Ahmed and the Director of the MBA Department, Mr. Brahm Sharma, for giving me permission to undertake the project and the faculty members of Presidency Business School for their valuable support. I would also like to express my profound sense of gratitude to Mr. Harshawardan.G, Branch manager (IIFL), Kempapura branch, Bangalore for his timely guidance and suggestions during my project study. I would like to thank Ms. Sharada Devi, faculty, MBA Department for her guidance and motivation. Without her valuable advice and support, this project would have not been a success. I thank all the respondents for providing me with valuable information for carrying out this project. I am also grateful to my parents, friends, girlfriend and all my well wishers who have helped me from behind the scene. Finally I would like to thank Almighty God for blessings.

Place: Bangalore

RIJABUL ISLAM TALUKDAR

Date:


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ABSTRACT This study aims to gather knowledge about the important factors which has a significant influence on investment behaviour and how this factors impact in investment decision making process among different age groups. Each individual‟s financial planning nee ds are differ from

other, though they may live in the same geographical area. I have used survey method for collecting data and probability sampling technique has been adopted. The data collected has been processed and simplified in the form of tables. Charts and Graphs were used to interpret the data. Null hypothesis of the study, H0- There is no association between the age of the investors and their investment behaviour. Alternative hypothesis of the study, H1- There is an association between the age of the investors and their investment behaviour. In my study, I have found out that the age group 20-30and 31-40 is investing more compare to any other age groups. These investors prefer young-unmarried stage to invest; according to them this is the best stage to start investment. Investors are investing in order to ascertain the future needs and to earn high profits. Most of the investors do not invest in share market, out of those who invest in share market like to trade as investment rather than speculation or hedging. Less number of investors knows about online trading but they are well aware of bank deposits, insurance and real state. Investors are willing to take high risk if they get high returns. Investors are investing in real states and banks because the returns are guaranteed. Many investors are not using the services of financia l advisors yet because they don‟t know how to find out a trustworthy advisor. To conclude, I can say that the individual investment pattern is different from each other according to the age of investors. As the age increase, the investors become more defensive and risk averse. Financial service companies should conduct awareness program for the investors as the awareness level of investors is very less. In order to increase the awareness of investment options they should not concentrate only on equity product but also concentrate on various investment avenues like mutual funds, fixed deposits, insurance, bonds, real states, precious objects, etc. Keywords: Investment pattern, Investment avenues, Investment approach, Risk-Return matrix,

Hedging, Perception of investors, liquidity, safety, Awareness of investors.


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TABLE OF CONTENTS: CHAPTER NO.

PARTICULARS

PAGE NO.

List of Tables List of Charts/Diagrams List of Graphs List of Abbreviations CHAPTER 1.

INTRODUCTION: 1.1 General introduction 1.2 Theoretical background of investment 1.3 Introduction to Investment pattern RESEARCH DESIGN: 2.1 Introduction 2.2 Review of Literature

01-04 04-17 17-18

2.2.1 Literature with Reference to Outside India 2.2.2 Literature with reference to India 2.3 Statement of the problem

19-19 19-19 19-20 20-22 23-23

2.4 Scope of the study 2.5 Objective of the study 2.6 Hypothesis 2.7 Operational Definitions of Concept 2.8 Research Methodology 2.9 limitations of the study 2.10 chapter scheme

23-23 24-24 24-24 25-26 27-30 30-30 31-31

CHAPTER 3.

COMPANY PROFILE: 3.1 Industry profile 3.2 profile of Company ( just for reference only)

32-39 40-52

CHAPTER

DATA ANALYSIS AND INTERPRETATION

53-91

CHAPTER 2.

4. CHAPTER 5.

(Hypothesis test, charts & graphs) FINDINGS, SUGGESTIONS AND CONCLUSION : 5.1 Findings 5.2 Conclusion 5.3 Recommendations

5.4 Scope of Further Study

92-93 94-94 95-95 96-96

BIBLIOGRAPHY ANNEXURE


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LIST OF TABLES Table No.

Description

Page No.

1.1

Table Showing Various Types of Investment with level of Return, Safety, etc.

09

3.1

Table Showing the Management Team of IIFL

43

3.2

Table Showing Comparison of Brokerage Charges in India:

50

4.1

Table Showing the Distribution of Age of Investors

53

4.2

Table Showing the Investment Preference of Investors According to Their Age

54

Group Table Showing Test of Significant Relationship Between the Age of the 4.2.1

Investors and Their Investment Preference by Using Chi-Square Test at 5%

54-55

level of Significant 4.3

Table Showing the Investment objectives of Investors According to their Age

56

Group Table Showing the Test of Significant Relationship Between Age of the 4.3.1

Investors and Their Investment Objectives by Using Chi-Square Test at 5%

56-57

level of Significant 4.4

Table Showing the Risk Taking Ability of Investors According to Their Age

58

Group Table Showing the Test of Significant Relationship Between Age of the 4.4.1

Investors and Their Risk Taking Ability by Using Chi-Square Test at 5% level

58-59

of Significant 4.5

Table Showing the Duration of Investment According to Age Group of

60

Investors Table Showing the Test of Significant Relationship Between Age of the 4.5.1

Investors and Investment Duration by Chi-Square Test at 5% level of

60

Significant 4.6

Table Showing the Age of the Investors and Their Opinion Source

61

Table Showing the Test of Significant Relationship Between the Age of the 4.6.1

Investors and Their Opinion Source by Chi-Square Test at 5% level of

62

Significant PRESIDENCY BUSINESS SCHOOL

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4.7

Table showing the All Results of Hypothesis Testing

63

4.8

Table Showing the Distribution of Investors According to Gender

64

4.9

Table Showing the Distribution of Investors According to Qualification

65

4.10

Table Showing the Distribution of Respondents According to Occupation

66

4.11

Table Showing the Distribution of Respondents According to Age Group

67

4.12

Table Showing the Respondents According to Gross Monthly Income

68

4.13

Table Showing the Distribution of Gross Monthly Savings of Respondents

69

4.14

Table Showing the No. of Respondents Who Invest Their Money

70

4.15

Table Showing the Reasons for Not Investing Money

71

4.16

Table Showing the Preference of Investors for Various Investment Options

72

4.17

Table Showing the Investment Objectives of Various Investors

73

4.18

Table Showing the No. of Investors Trade in Share Market

74

4.19

Table Showing the Mode of Investment in Share Market

75

4.20

Table Showing Awareness of Investors about Various Investment Options

76

4.21

Table Showing Preference of Investors to Deal with Intermediaries

77

4.22

Table Showing the Reasons for Trading with India Infoline Ltd

78

4.23

Table Showing Awareness of Investors about Online Trading & Buying and

79

Selling Shares Online 4.24

Table Showing the Sources that Can Give Better Advice of Online Trading

80

4.25

Table Showing Suitable Stage for Investment According to Investors

81

4.26

Table Showing How Often Investors Prefer to Trade/Invest

82

4.27

Table Showing the Risk Preference of Investors

83

4.28

Table Showing No. of Investors Think Inflation as a Significant Risk

84

4.29

Table Showing Preference for Investment In Terms of Time Period

85


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4.30

Table Showing No. of Investors Heard about IIFL Intermediary Company

86

4.31

Table Showing Factors that May Influence Investors to Deal with IIFL

87

4.32

Table Showing No. of Investors Availing Services of Financial Advisors

88

4.33

Table Showing Reasons for Availing Services of Financial Advisors

89

4.34

Table Showing Reasons for Not Availing Services of Financial Advisors

90

4.35

Table Showing the Satisfaction Level of Investors with IIFL‟s Services

91

LIST OF CHARTS AND DIAGRAMS: Chart No.

Description

Page No.

1.1

Chart Showing the Investment Alternatives

10

1.2

Chart Showing the Investment Process

15

1.3

Chart Showing the investment Dimensions and Investment Decisions, Impact

18

by Age Group of Investors 3.1

Chart Showing the Trading Network

37

3.2

Chart Showing the Corporate Structure of IIFL

42

3.3

Chart Showing the SWOT Analysis

51


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LIST OF GRAPHS Graph No.

Description

Page No.

4.1

Graph Showing the Distribution of Age of Investors

53

4.1

Graph Showing the Distribution of Investors According to Gender

64

4.2

Graph Showing the Distribution of Investors According to Qualification

65

4.3

Graph Showing the Distribution of Respondents According to Occupation

66

4.4

Graph Showing the Distribution of Respondents According to Age Group

67

4.5

Graph Showing the Respondents According to Gross Monthly Income

68

4.6

Graph Showing the Distribution of Gross Monthly Savings of Respondents

69

4.7

Graph Showing the No. of Respondents Who Invest Their Money

70

4.8

Graph Showing the Reasons for Not Investing Money

71

4.9

Graph Showing the Preference of Investors for Various Investment Options

72

4.10

Graph Showing the Investment Objectives of Various Investors

73

4.11

Graph Showing the No. of Investors Trade in Share Market

74

4.12

Graph Showing the Mode of Investment in Share Market

75

4.13

Graph Showing Awareness of Investors about Various Investment Option

76

4.14

Graph Showing Preference of Investors to Deal with Intermediaries

77

4.15

Graph Showing the Reasons for Trading with India Infoline Ltd

78

4.16

Graph Showing Awareness of Investors about Online Trading & Buying and

79

Selling Shares Online 4.17

Graph Showing the Sources that Can Give Better Advice of Online Trading

80

4.18

Graph Showing Suitable Stage for Investment According to Investors

81

4.19

Graph Showing How Often Investors Prefer to Trade/Invest

82

4.20

Graph Showing the Risk Preference of Investors

83


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4.21

Graph Showing No. of Investors Think Inflation as a Significant Risk

84

4.22

Graph Showing Preference for Investment In Terms of Time Period

85

4.23

Graph Showing No. of Investors Heard about IIFL Intermediary Company

86

4.24

Graph Showing Factors that May Influence Investors to Deal with IIFL

87

4.25

Graph Showing No. of Investors Availing Services of Financial Advisors

88

4.26

Graph Showing Reasons for Availing Services of Financial Advisors

89

4.27

Graph Showing Reasons for Not Availing Services of Financial Advisors

90

4.28

Graph Showing the Satisfaction Level of Investors with IIFL‟s Services

91


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ABBREVIATIONS & ACRONYMS: FD: Fixed Deposits. PPF: Public/Peoples Provident Funds. FMP: Fixed Maturity Period. PSU Bonds: Public Sector Unit Bonds; issued by the public sector companies or government. GIC: Guaranteed Investment Contract. KVP: Kisan Vikas Patra. NSS: National Savings Schemes. DSRE: Deposit Schemes for Retired Employees. NCAER: National Council for Applied Economics Research. SEBI: Securities and Exchange Board of India. IPO: Initial Public Offering. FII: Foreign Institutional Investors. NASDAQ: National Association of Securities Dealers Automated Quotation. NSDL: National Securities Depository Limited. NPA: Non Performing Assets. HNI: High Net-worth Individual. PMS: Portfolio Management Services. VAS: Value Added Services. MMC: Minimum Maintenance Charge. AUC: Asset Under Custodian.


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INTRODUCTION 1.1 General Introduction: Finance

Finance may be defined as the provision of money at the time when it is required. Finance refers to the Management of flows of money through an Organization. It concerns with the application of skills in the manipulation, use and control of money. The American heritage dictionary of the English language fourth edition defines the term as under: “The Science of the Management of money and other assets” “The Management of money , banking ,Investments and credit” “Supplying of funds or capital” 1.1.1 Financial Management

Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise Three key elements to the process of Financial Management are: Financial Planning:

Management need to ensure that enough funding is available at the right time to meet the needs of the business. In the short term, funding may be needed to invest in equipment and stocks, pay employees and fund sales made on credit. In the medium and long term, funding may be required for significant additions to the productive capacity of the business or to make acquisitions.


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INVESTMENT DECISION MAKING PATTERN OF INVESTORS Financial Control:

Financial control is a critically important activity to help the business ensure that the business is meeting its objectives. Financial control addresses questions such as: Are assets being used efficiently? Are the businesses assets secure? Does management act in the best interest of shareholders and in accordance with business rules? Financial Decision-Making:

The key aspects of financial decision-making relate to investment, financing and dividends: Investments must be financed in some way– however there are always financing alternatives that can be considered. For example it is possible to raise finance from selling new shares, borrowing from banks or taking credit from suppliers A key financing decision is whether profits earned by the business should be retained rather than distributed to shareholders via dividends. If dividends are too high, the business may be starved of funding to reinvest in growing revenues and profits further. 1.1.2 Objectives of Financial Management:

The preceding discussion have shown that financial management, as an academic discipline, is concerned with decision-making in regard to the size and composition of assets and the level and the structure of financing. To make wise decision a clear understanding of the objectives which are sought to be achieved is necessary. The objective provides a frame work for optimum financial decision making.


15

INVESTMENT DECISION MAKING PATTERN OF INVESTORS There are two widely discussed approaches: Profit Maximization Approach:-

How a private firm should behave depends on profit maximization as a decision criterion. Under this concept, action that increase the firm‟s profit are undertaken and those that decrease profit

are avoided profit can be maximized either by increasing output for a given set of scarce input or by reducing the cost of production for a given output. Wealth Maximization Approach:-

Under this system the present value or wealth of a course of action is maximized. The net present value is the difference between the gross present value of the benefits of that action and the amount of investment required to achieve those benefits. It removes the limitation suffered by the profit maximization. 1.1.3 Functions of Financial Management: The major functions of financial management are: Estimation of capital requirements:

A finance manager has to make estimation with regards to capital requirements of the company. This will depend upon expected costs and profits and future programmers and policies of a concern. Estimations have to be made in an adequate manner. Determination of capital composition:

Once the estimation has been made, the capital structure have to be decided. This involves short- term and long- term debt equity analysis. This will depend upon the proportion of equity capital a company is possessing and additional funds which have to be raised from outside parties.


16

INVESTMENT DECISION MAKING PATTERN OF INVESTORS Choice of sources of funds:

For additional funds to be procured, a company has many choices likea) Issue of shares and debentures b) Loans to be taken from banks and financial institutions c) Public deposits to be drawn like in form of bonds. 1.2 Theoretical Background:

Investing in various types of assets is an interesting activity that attracts people from all walks of life irrespective of their occupation, economic status, education and family background. When a person has a more than he requires for current consumption, he would be coined as a potential investor. The investor who is having extra cash could invest it in securities or in any other assets like gold or real estate or could simply deposit in his bank account. The companies that extra income likes to invest their money in the extension of the existing firm or undertake new venture. All of these activities in a broader sense mean investment. 1.2.1 Behavioural Finance:

Behavioural finance studies the influence of psychology on our investment decision making pattern. Behavioural finance helps us to know, how the psychological factors affect the financial practitioners and then the market. It is an open-minded finance. It can explain how and why the market may be inefficient in future. The investment pattern of the investors mostly depends on the psychology of the investors. It is very difficult to understand the psychology of investors and react to that. Many researchers are trying to find out the exact definitions of behavioural finance but no one yet could give 100% correct definition of it. Without referring the behavioural finance concept, it will very difficult to know the investment decision making process of investors. It mainly deals with human psychology, human judgment and human behavior.


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INVESTMENT DECISION MAKING PATTERN OF INVESTORS 1.2.2 Introduction to Investment:

Investment is the employment of funds on assets with the aim of earning income or capital appreciation. Investment has two attributes namely time and risk. Present consumption is scarified to get a return in the future. The sacrifice that has to be borne is certain but the return in the future may be uncertain. This attribute of investment indicates the risk factor. The risk is undertaken with a view to reap some return from the investment. For layman investment means some monetary commitment. A person‟s commitment to

buy a flat or a house for his personal use may be an investment from his point of view. This cannot be considered as an actual investment as it involves sacrifice but does not yield any financial return. To the economist, investment is the net addition made to the nation‟s capital stock that

consists of goods and services that are used in the production process. A net addition to the stock means an increase in the buildings, equipments or inventories. These capital stocks are used to produce other goods and services. Financial investment is the allocation of money to assets that are expected to yield some gain over a period of time. It is an exchange of financial claims such as stock and bonds for money. They are expected to yield returns and experience capital growth over the years. The financial and economic meanings are related to each other because the savings of the individual flow into the capital market as financial investments, to be economic investment. Even though they are related to each other, we are concerned only about the financial investment made on securities.


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INVESTMENT DECISION MAKING PATTERN OF INVESTORS 1.2.3 Pure Investment:

Financial investments are like exchange of financial claims, like buying of shares, debentures, purchasing insurance policy, investing money in bank or post office, etc. These objectives becoming the guiding force for his investment decision. Three Golden Rules of Investment:

Invest early Invest regularly Invest in short-term and long-term 1.2.4 Investment Decision Making Approaches:

As investors we would have diverse investment strategies with the primary aim to achieve superior performance, which would also mean a higher rate of return on our investments. All investments strategies can be broadly classified under two approaches which are explained below: Fundamental Approach:

In this approach the investor is concerned with the intrinsic value of the Investment instrument. Given below are the basic rules followed by the fundamental investor. There is an intrinsic value of a security, which in turn is dependent on the underlying economic factors. This intrinsic value can be ascertained by an in-depth analysis of the fundamental or economic factors related to an economy, industry and company. At any point in time, many securities have current market prices, which are different from their intrinsic values. However, sometime in the future the current market price would become the same as its intrinsic value. We as fundamental investors can achieve superior results by buying undervalued securities and selling overvalued securities. PRESIDENCY BUSINESS SCHOOL

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INVESTMENT DECISION MAKING PATTERN OF INVESTORS Psychological Approach

The psychological investor would base his investment decision on the premise that stock prices are guided by emotions and not reason. This would imply that the stock prices are influenced by the prevalent mood of the investors. This mood would swing and oscillate between the two extremes of “greed” and “fear”. When “greed” has the lead stock prices tend to achieve dizzy heights. And when “fear” takes over stock prices get depressed to lower than lower levels.

As psychic values seem to be more important than intrinsic values, it is suggested that it would be more profitable to analyze investor behavior as the market is swept by optimism and pessimism. Which seem to alternate one after the other, this approach is also called “Castle-in-

the-air” theory. In this approach the investor uses some tools of tech nical analysis, with a view to study the internal market data, towards developing trading rules to make profits. In technical analysis the basic premise is that price movement of stocks has certain persistent and recurring patterns, which can be derived from market trading data. Technical analysts use many tools like bar charts. 1.2.5 Investment Objectives:

The main investment objectives are increasing the rate of return and reducing risk. Other objectives like safety, liquidity and hedge against inflation are subsidiary objectives. Liquidity

Marketability of the investment provides liquidity to the investment. The liquidity depends upon the marketing and trading facility. If a portion of the investment could be converted without much loss of time, it would help the investor meet the emergencies. Stocks are liquid only if they command good market by providing adequate return through dividends and capital appreciation. PRESIDENCY BUSINESS SCHOOL

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INVESTMENT DECISION MAKING PATTERN OF INVESTORS Return:

Investors always expect a good rate of return from their investments. Rate of return could be defined as the total income the investor receives during the holding period stated as a percentage of the purchasing price at the beginning of the holding period. 

Return= end period value- beginning period + dividend * 100

Rate of return is stated semi-annually or annually to help comparison among the different alternatives. If it is a stock, the investor gets the dividend as well as the capital appreciation as returns. Market return of the stock indicates the price appreciation for the particular stock. Risk:

Risk of holding securities is related with the probability of actual return becoming less than the expected return. The word risk is synonymous with the phrase variability of return. Investments „risk is just as important as measuring its expected rate of return because minimizing risk and

maximizing the rate of return are interrelated objectives in the investment management. An investment whose return that does not change much. Every investor likes to reduce the risk of his investment by proper combination of different securities. Hedge against inflation:

Since there is a inflation in almost all the economy, the rate of return should ensure a cover against the inflation. The return rate should be higher than the rate of inflation else the investor will have loss in real terms. Growth stocks would appreciate in their values overtime and provide a protection against inflation. The returns thus earned should assure the safety of the principal amount, regular flow of income and be a hedge against inflation.


21

INVESTMENT DECISION MAKING PATTERN OF INVESTORS Safety:

The selected investment avenues should be under the legal and regulatory frame work. If it is not under the legal frame work, it is difficult to represent the grievances, if any. Approval of the law itself adds a flavor of safety. Investments done with the government assure more safety than with the private party. From the safety point of view investments can be ranked as follows: bank deposits, government bonds, UTI units, non-convertible debentures, equity shares, and deposits with the non-banking financial companies. Table 1.1: Table Showing Various Types of Investment with level of Return, Safety, etc.;

Investments

Returns

Safety

Volatility

Liquidity

Convenience

Equity

High

Low

High

High

Moderate

Bonds

Moderate

High

Moderate

Moderate

High

Debentures

Moderate

Moderate

Moderate

Low

Low

Mutual Funds

High

High

Moderate

High

High

Real State

High

Moderate

High

Low

Low

Life insurance

Low

High

Low

Low

Moderate

Gold

Moderate

High

Moderate

Moderate

High

Co. FD’s

Moderate

Low

Low

Low

Moderate

Bank deposits

Low

High

Low

High

High

PPF

Moderate

High

Low

Moderate

High

Source: - Secondary data, www.investopedia.com, Date: - 27-02-2012.


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INVESTMENT DECISION MAKING PATTERN OF INVESTORS 1.2.6 Investment Alternatives:

As an investor you have a wide array of investment avenues available to you. Sacrificing some rigor, these may be classified as shown below: CHART 1.1: Chart Showing the Investment Alternatives:

Investment Avenues

Non – marketable

Equity shares/owners

financial assets

capital

Money market instruments

Debt instrument

Bonds

Precious Objects

Mutual fund schemes

Life insurance policies

Real estate

Financial derivatives

Source: - Secondary data, Investment Analysis and Portfolio Management by “Prasanna Chandra. PP. 5, Date: - 14-02-2011


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INVESTMENT DECISION MAKING PATTERN OF INVESTORS 1.2.6.1 Non-Marketable Financial Assets :

A good portion of financial assets is represented by non-marketable financial assets. These can be classified into the following broad categories: 

Bank deposits



Post office deposits



Company deposits



Provident fund deposits

1.2.6.2 Equity shares

Equity shares represent ownership capital. As an equity shareholder, you have an ownership stake in the company. This essential means that you have a residual interest in income and wealth perhaps, the most romantic among various investment avenues, equity shares are classified into the following broad categories by stock market analysts: 

Blue chip shares



Growth shares



Income shares



Cyclical shares

1.2.6.3 Monetary Market Instruments:

Debt instruments which have a maturity of less than one year at the time of issue are called money market instruments. The important money market instruments are: 

Treasury bills



Commercial paper



Certificates of deposit


24

INVESTMENT DECISION MAKING PATTERN OF INVESTORS 1.2.6.4 Debt Instruments :

Debt instruments protect your capital, therefore the importance of a solid debt portfolio. This not only gives stability, but also offers you optimal returns, liquidity and tax benefits. Debt products, besides safeguarding your capital, can be used to meet short, medium and long-term financial needs. Short-Term Options:

They are good for short term goals, you can look at liquid funds, floating rate funds and shortterm bank deposits as options for this category of investments. Liquid funds have retuned around 5% post-tax returns as compared to 5.6% post-tax that your one-year 8% bank fixed deposit gives you. So, if you have funds for investment for over a period of one year, it is better to go in for bank deposits. However, liquid funds are better, if your time horizon is less than one-year, say around six months. Fixed Maturity Plan (FMP):

If you know exactly for how much time you need to invest your surplus, a smarter option is to invest in FMPs. They are shorter-tenured debt schemes that buy and hold securities till maturity, thereby eliminating the interest rate risk. Try and opt for FMPs that offer a double indexation benefit. Fund houses usually launch double-indexation FMPs during the end of the financial year so that they cover two financial year closings. Medium & Long-Term Options:

These options typically offer low or virtually no liquidity. They are, however, largely useful as income accumulation tools because of the assured interest rates they offer. These instruments (small savings schemes) should find place in your long-term debt portfolio.


25

INVESTMENT DECISION MAKING PATTERN OF INVESTORS 1.2.6.5 Bonds:

Bonds are debentures represent long-term debt instruments. The issuer of a bonds promises to pay stipulated steam of cash flows. Bonds may be classified into the following categories: 

Government securities



Government of India relief funds



Government agency securities



Debentures of private sector companies



PSU bonds



Preference shares

1.2.6.6 Precious Objects:

Precious objects are items that are generally small in size but highly valuable in monetary terms. Some important precious objects are: 

Gold and silver



Precious stones



Art objects

1.2.6.7 Mutual funds:

Investment companies or investment trusts obtain funds from large number of investors through sale of units. The funds collected from the investors are placed under professional management for the benefit of the investors. The mutual funds are broadly classified into two types are: 

Open-ended scheme



Closed-ended funds


26

INVESTMENT DECISION MAKING PATTERN OF INVESTORS 1.2.6.8 Life insurance:

Life insurance is a contract for payment of a sum of money to the person assured (or to the person entitled to receive the same) on the happenings of event insured against. Usually the contract provides for the payment of an amount on the date of maturity or at specified dates at periodic intervals or if unfortunate death occurs. Among other things, the contracts also provide for the payment of premium periodically to the corporation by the policy holders. Life insurance eliminates risk. The major advantages of life insurance are given below: 

Protection: Saving through life insurance guarantees full protection against risk of

death of the saver. The full assured sum is paid, whereas in other schemes only the amount saved is paid. 

Easy payments: For the salaried people the salary savings‟ schemes are introduced.

Further, there is an easy installment facility method of payment through monthly, quarterly, half yearly or yearly mode. 

Liquidity: Loans can be raised on the security of the policy.



Tax relief: Tax relief in Income Tax and Wealth Tax is available for amounts paid by

way of premium for life insurance subject to the tax rates in force. 1.2.6.9 Real estate:

For the bulk of the investors the most important asset in their portfolio is a residential house. In addition to a residential house, the more affluent investors are likely to be interested in the following types of real estate: 

Agricultural land



Semi-urban land



Time share in a holiday resort


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INVESTMENT DECISION MAKING PATTERN OF INVESTORS 1.2.6.10 financial derivatives:

A financial derivative is an instrument whose value is derived from the value of an underlying asset. It may be viewed as a side bet on the asset. The most important financial derivatives from the point of view of investors are: 

Forward



Futures



Options



SWAP

1.2.7 The Investment Process:

There are five main steps in investment management process, they are shown below: CHART 1.2: Chart Showing the Investment Process:

1.

2.

3.

4.

5.

• Setting investment objectives • Establishing investment policy • Selecting the portfolio strategy • Selecting the assets • Measuring and evaluating performance

Source: - Secondary data, Investment Analysis and Portfolio Management by “Prasanna Chandra. Date: - 19-02-2012. PRESIDENCY BUSINESS SCHOOL

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INVESTMENT DECISION MAKING PATTERN OF INVESTORS Setting Investment Objectives:

The first main step in the investment management process is Setting Investment Objectives. For institutions such as pension funds and life insurance companies, these objectives may be a cash flow specification to satisfy a liability due at some future date or a series of liabilities due at different future dates. A guaranteed investment contract (GIC) sold by a life insurance company is an example of the former; the projected benefit payout to beneficiaries of a pension plan and an annuity policy sold by a life insurance company are examples of multiple liabilities. For institutions such as banks and thrifts, the objective may be to lock-in a minimum interest rate spread over the cost of their funds. For others, such as mutual funds and some trust accounts, the investment objective may be to maximize return. Establishing Investment Policy:

The second main step is establishing policy guidelines to satisfy the objectives. Setting policy begins with asset allocation among the major asset classes-the products of the capital market. The major asset classes include equities, fixed income securities, real estate, and foreign securities. Client and regulatory constraints must be considered in establishing an investment policy. Selecting a Portfolio Strategy:

Selecting portfolio strategy that is consistent with the objectives and policy guidelines of the client or institution is the third step in the investment management process. Portfolio strategies can be classified as either active strategies or passive strategies. Essential to all active strategies are expectations about the factors that are expected to influence the performance of an assets class.


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INVESTMENT DECISION MAKING PATTERN OF INVESTORS Selecting the Assets:

Once a portfolio is selected, the next main step is the selection of the specific assets to be included in the portfolio. It is in this phase that financial theory tells us the investment manager attempts to construct an optimal or efficient portfolio is one that provides the greatest expected return for a given level of risk, or equivalently, the lowest risk for a given expected return Measuring and Evaluating Performance:

The measurement and evaluation of investment performance is the last step in the investment management process. (Actually, it is improper to say that it is the last step since investment management is an ongoing process.) This step involves measuring the performance and then evaluating that performance relative to some realistic benchmark.

1.3 Introduction to Investment pattern: The topic of the project is, “A study on Investment Decision Making Pattern of Investo rs, with special reference to IIFL”. Investment decision making pattern of investor‟s means, on the basis of what an investor takes

decision for his investment in any asset. The decision making pattern of each investor is different from others. It is very difficult to know the investment pattern of every investor. We can not take a standard assumption about the pattern of investment, to know the possible accurate idea about the investment pattern we need to find it out by looking at the investment objectives, risk-return matrix, etc. of individual investors. The gross monthly income and gross monthly savings of the investors plays a significant role in investment decision making, the stage of life cycle, professions also plays an important role while an investor takes decision on investment. This is very important for stock broking companies/intermediaries Company to know the criteria, on the basis of what an investor takes his investment decision.


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INVESTMENT DECISION MAKING PATTERN OF INVESTORS I have taken this topic, A study on “Investment Decision Making Pattern Of Investors” with the

special reference to India Infoline Ltd in order to find out if there is any association between the age of the investors and their investment behavior. I want find out, is age of the investors and their investment decisions are dependent. My main motive is to know the impact of age group of investors on investment pattern, how investors decide or choose any investment avenues. Is age of the investors having an impact on their investment objectives, investment preference, perceptions, risk taking ability and duration for investment. The bellow chart will explain well about my topic and its motives: CHART 1.3: Chart Showing the investment Dimensions and Investment Decisions, Impact by Age Group of Investors:

INVESTMENT DIMENSIONS PREFERENCE OBJECTIVE RISK DURATION OPINION

20-30

AGE

31-40

GROUP

41-50 51 & ABOVE

INVESTMENT DECISIONS


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INVESTMENT DECISION MAKING PATTERN OF INVESTORS REVIEW OF LITERATURE & RESEARCH DESIGN 2.1 Introduction:

In order to study the behaviour of investors a review of literature has been done to develop the concept and understand what had been done earlier with the similar kinds of problem. The performance of Stock market is not only the result of intelligible characteristics but also due to the emotions that are still baffling to the analysts. Despite of many information bombarding from all directions, it is not the easy calculations of financial wizards, or company‟s financial performance or widely accepted criterion of stock performance but the investor‟s irrational

emotions like overconfidence, fear, risk aversion, etc., seem to decisively drive and dictate the fortunes of the market and its movement. 2.2 Review of Literature:

Earlier studies have been carried out to find out the pattern of Institutional investors investment only but the studies dealing with Investment pattern of individual investors are very few or less. Previous studies mainly conducted concentrate on differences in individual investment pattern on the basis of Gender (male and female). Differences on the basis of age group and stages of life-cycle in investment pattern are new avenue for research. 2.2.1 Literature with Reference to Outside India: 1. Barnewall (1987 & 1988):

Barnewall (1987) found out that an individual investor can be recognised by his lifestyle, risk aversion, control orientation and occupation. Barnewall (1988) suggests the use of psychographics as the basis of determining an individual ‟s financial services needs and build a marketing program as required. According to him we can find out the individual investment needs and objectives on the basis of age factors.


33

INVESTMENT DECISION MAKING PATTERN OF INVESTORS 2. Statman (1988):

Ststman (1988) observed that investors invest for both emotional and cognitive reasons. They invest because they think they have all the information, when in reality they make nothing but noise and trade only because trading brings them joy and happiness. Trading brings joy when decisions are made correctly and brings profit, but it brings sadness when they make a wrong decision. Investors try to ignore the pain of loose by forgetting losses, availing financial advisors and avoiding thosecompanies stock‟s which havelow reputations. 3. E. Bennet, Dr. M. Selvam, Eva Ebenezer, V. Karpagam, S. Vanitha (2011)

They concluded that the average value of the five factors, namely, Return on Equity, Quality of Management, Return on Investment, Price to Earnings Ratio and various ratios of the company influenced the decisions of investors. Further, other five factors, namely, recommendation by analysts, Broker and Research Reports, Recommendation by Friend, Family and Peer, Geographical Location of the Company and Social Responsibility were given the lowest priority or which had low influence on the stock selection decision by the retail investors. 2.2.2 Literature with reference to India: 1. Securities and Exchange Board of India (SEBI) and NCEAR (2000): „Survey of Indian Investors‟ had been report that Safety and Liquidity were the primary

considerations which determined the choice of an asset. In this paper they were trying to find out the Factors which influence individual investment decisions, the difference in the perception of Investors in the investing process on the basis of Age and the difference in perception of the Investors on the basis of Gender.


34

INVESTMENT DECISION MAKING PATTERN OF INVESTORS 2. Karthikeyan (2001):

Karthikeyan has conducted research on Small Investors Perception on Post office Saving Schemes and found that there was significant difference among the four age groups, in the level of awareness for kisan vikas patra (KVP), National Savings Scheme (NSS), and deposit Scheme for Retired Employees (DSRE), and the Overall Score Confirmed that the level of awareness among investors in the old age group was higher than in those of young age group. NO differences were observed among male and female investors except for NSS and KVP. 3. K.Santi Swarup (2003):

Studied on the decisions taken by the investors while investing in the primary markets. In her study she indicated that investors give importance to their own analysis as compared to their broker‟s advice. 4. Yash Pal Davar and Suveera, Gill (2007):

In their paper on investment decision making revealed that the class of investors (undoubtedly) with growing age develop maturity and experience for making decisions about the usage of their surplus and available funds in the light of overall economic needs of family. 5. Dr. Vanita Tripathi (2008):

Examines the perceptions, preferences and various investment strategies in Indian stock market. Study reveals that investors use both fundamental as well as technical analysis while investing in Indian stock market. Most of the respondents strongly agree that various company fundamentals (such as size, book to market equity, price earnings ratio, leverage etc.) significantly influence stock prices and hence addition of these factors in asset pricing model can better explain cross sectional variations in equity returns in India.


35

INVESTMENT DECISION MAKING PATTERN OF INVESTORS 6. Syed Tabassum Sultana (2010):

Concludes that the individual investor still prefers to invest in financial products which give risk free returns. This confirms that Indian investors even if they are of high income, well educated, salaried, independent are conservative investors prefer to play safe. The investment product designers can design products which can cater to the investors who are low risk tolerant and use TV as a marketing media as they seem to spend long time watching TVs. 7. Azwadi Ali (2011):

In his study showed interest in examining the relationships between individual investors perceived financial performance of companies and their trading intentions, and the mediating effect of companies images on the relationships. 8. Giridhari Mohanta & Dr.Sathya Swaroop Debasish(2011):

Studied that investors invest in different investment avenues for fulfilling financial, social and psychological need. While selecting any financial avenue they also expect other type of benefits like, safety and security, getting periodic return or dividends, high capital gain, secured future, liquidity, easy purchase, tax benefit, meeting future contingency etc. The main aim of the present study is to get some knowledge about the key factors that can influence individual investment behaviour and the various ways by which these factors can impact investment risk tolerance and investment decision making process among various age groups. The individuals may be equal in all aspects, but their behaviour is different in same situation. Earlier many researchers have been conducted but they researched only gender wise, in this study I am trying to find out the factors which can affect individual investment pattern by considering age age groups. Hence, my study is an attempt to find out various Factors which can affect individual investment pattern and differences in the perception of Investors in the decision of investing on basis of Age.


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INVESTMENT DECISION MAKING PATTERN OF INVESTORS 2.3 Statement of the Problem:

“To get an idea about the mindset of investors regarding trading and investment in various

investment options easily available in the market and to get an idea about the mindset of investors towards the importance given to different attributes such as risk-return matrix, liquidity, safety, etc. of various investment options such as equities, debts, bank deposits, mutual funds, real state. In the report I try to understand the investor‟s behaviour while trading.” “To study the investor‟s preferences and perceptions regarding financial productsavailable in the market and the impact of income level on investment decision making process”. To find out

how age factor has an impact on investment pattern. 2.4 Scope of the Study:

The study is restricted to Bangalore city. The findings and the research of the study can be generalized in those areas that have the characteristics of Bangalore city. This study can be use for farther study but the researcher has to consider different factors such as income and savings, education, age-group etc. 1) This study will let us know the financial capacity of the people of Bangalore city and its sub-urban areas. 2) We will be able to take corrective measures for the overall development of this region. 3) This study will help us to know the purchasing power of the people in and around Bangalore city. 4) This study helps to know about the response of the people of Bangalore city regarding the investment opportunities. 5) This study helps to know the awareness level of the investors about the various investment options available in the market.


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INVESTMENT DECISION MAKING PATTERN OF INVESTORS 2.5 Objectives of the Problem:

The objectives of the research study are mentioning below: 1) To study the investor‟s behaviour towards different attributes such as risk-return matrix, liquidity, safety, etc. while investing their money. 2) To study the important issues and challenges faced by the investors during the time of investment in various investment options. 3) To study the current & future scope for financial advisors. 4) To study the Investment decision of different class of people, (in terms of age-group, education, etc.) 5) To study the investor‟s preferences and perceptions regarding financial products available in the market and the impact of income level for investment decision making process.

Hypothesis of the Study:

A supposition or explanation that is provisionally accepted in order to interpret certain events or phenomena, and to provide guidance for further investigation. A hypothesis may be proven correct or wrong, and must be capable of refutation. If it remains unrefuted by facts, it is said to be verified.

H0- There is no association between the age of the investors and their investment behaviour. The age of the investors and their investment behaviour is independent.

H1- There is an association between the age of the investors and their investment behaviour. The age of the investors and their investment behaviour is dependent.


38

INVESTMENT DECISION MAKING PATTERN OF INVESTORS 2.7 Operational Definitions of Concept: Investor: An individual who commits money to investment products with the expectation of

financial return. Generally, the primary concern of an investor is to minimize risk while maximizing return, as opposed to a speculator, who is willing to accept a higher level of risk in the hopes of collecting higher-than average profits. Retail Investor: An individual who purchases small amounts of securities for him/herself, as

opposed to an institutional investor, also called individual investor or small investor. Angel Investor: an angel or angel (known as a business angel or informal investor), is an

affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity

Bid price: The price which is acceptable to the bidder to purchase a specified number of

shares Ask Price: The price at which a maker is willing to sell a particular quantity of stock. Asset allocation: Spreading investment amount into different alternatives like direct and

indirect securities to get the maximum benefit. At-The-Money: A put or call option where the current price of the underlying asset is

approximately equal to the present value of the exercise price. Bull market: When share prices continue to rise in a stock market. It is that the market is

bullish. Bear market: When prices in the stock market are pushing down it is called a bear market. Primary market: A new issue market is called the primary market.


39

INVESTMENT DECISION MAKING PATTERN OF INVESTORS Initial public offering (IPO): The first offer of shares by company to the general public Trading: Buying and selling securities or commodities on a short-term basis, hoping to make

quick profits Intra-day trading: Intraday Trading is trading for that one day only. Whereas some day traders

hold positions overnight intraday traders maintain no overnight positions. Book building: This is a process of deciding an issue price of a security through market

forces. Closing price: The price at which the last trade of the day takes place in a particular security. Demat: A mechanism through which securities are converted from physical mode to electronic

mode. Derivative market: These securities derive their value from underline assets. Earnings per share: The after tax earnings of a company dividend by its equity shares. Financial market: A market, which deals with the purchase and sale of financial assets. for

example, a stock market. Financial risk: A risk, which is due to factors like price changes, interest, capital and change in

policies. Market risk: It is also called systematic risk. It cannot be controlled as it depends on the forces

of demand and supply. Investment Company: Is a financial intermediary which collects money from investor by

issuing shares and purchases financial assets in the market. Institutional investor: Banks, insurance companies and mutual funds.


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INVESTMENT DECISION MAKING PATTERN OF INVESTORS 2.8 Research Methodology:

The methodology section is the blue print of researcher activity and tells how the researcher has to study the people or describe social settings of respondents. We can also say that the methodology section make easy for the researcher to know the desire study and how to do it. 2.8.1 Type of Research: Descriptive research: Descriptive research, also known as statistical research, descriptive

data and characteristics about the population or phenomenon being studied. Descriptive research answers the questions who, what, where, when and how. Although the data description is factual, accurate and systematic, the research can not describe what casual a situation is. My research is a descriptive research where i adopted survey method to collect primary information from the investors/non-investors using structured questionnaire and the required secondary information from the internet for the analysis. 2.8.2 Survey Method:

The Survey method is the technique of gathering data by asking questions to people who are thought to have desired information. A formal list of questionnaire is prepared. Generally a non disguised approach is used. The respondents are asked questions on their demographic interest opinion. 2.8.3 Sampling:

Empirical field studies require collection of first hand information or data pertaining to the units of study from the field. A part from the population is known as sample. The process of taking a sample from a larger number of populations is called sampling. Sampling is a tool which helps to know the characteristics of the population the basic objective of sampling is to draw inference about the population. PRESIDENCY BUSINESS SCHOOL

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INVESTMENT DECISION MAKING PATTERN OF INVESTORS 2.8.3.1 Sampling procedure:

The sample is selected in a random way, irrespective of them being investor or not or availing the services or not. It was collected through personal visits to the known or unknown persons, by formal and informal talks and through filling up the questionnaire prepared. The data has been analyzed by using the measures of central tendencies like mean, median, mode. The group has been selected and the analysis has been done on the basis of statistical tools available. 1) Probability Sampling

Probability Sampling is also known as “Random Sampling” or “Chance Sampling”. Under this Sampling design, each and every item in the universe has an equal chance to be included in the sample. It is also known as lottery method. Non-Probability Sampling

This is the Sampling procedure where each item in the population has of being including in the sample. In a design like that, personal element can be entered into the selection of the sample. 

For the purpose of the present study, probability sampling has been selected.

2) Convenience sampling

Sampling method where the items that are most conveniently available are selected as part of the sample. It is not appropriate to apply statistical analysis to samples selected in this manner. 2.8.3.2 Sample Unit: Both the investors/non-investors is the sampling unit for my study. 2.8.3.3 Sample Size: Due to time constraint my sample size was restricted to100. Out of 100

samples 88 were taken for analysis purpose, because 12 samples were not duly filed by the respondents and there were many missing data‟s.


42

INVESTMENT DECISION MAKING PATTERN OF INVESTORS 2.8.4 Duration of the Study: The Research was conducted for a period of Eight (8) Weeks. 2.8.5 Tools for Data Collection:

The various tools for data collection are: 1) Primary Data:

The primary data are the first hand and srcinal data which are collected through the various tools mentioned bellow: a) Structured Questionnaire

A questionnaire used in large survey where specific answers are anticipated. They include the use of multiple choice and scale questions. b) Personal Interview

A direct, face to face conversation between a representative of the research organization and a respondent or interviewee. The study is to be conducted with the aid of wellstructured questionnaire that avoided the ambiguous, loaded as well as leading questions. The language of the question was simple and easy to understand 2) Secondary Data:

It was collected through internal and external source and the company data was collected from company records. a) Website b) Company profile c) Journals, text books, magazines. d) Prior survey information.


43

INVESTMENT DECISION MAKING PATTERN OF INVESTORS 2.8.6 Tools for Analysis of Data:

The data collected has been processed andsimplified in the form of tables. Charts and Graphs were used to interpret the data. The data were systematically arranged, so that no missinterpretation takes place and errors can be minimized. To test the hypothesis I have used “Chi-Square” test at a significant level of 5%. The Chi -Square value has been calculated by

taking statistical formula and the table value has been taken from research methodology book. I have compare the calculated value of Chi-Square and the table value at 5% level of significant in order to select or accept null/alternative hypothesis. Tools used for presentation of data are: i) Bar diagram ii) Pie charts iii) Column graphs

2.9 Limitations of the Study:

I have found the following limitations in my research study: i) It was very difficult to convince the people to fill up the questionnaire. ii) It is only an assumption that the respondents have given correct information. iii) The study has the limitation of time and resources. iv) The respondents were not open to questions related to their personal income. v) The respondents did not want to provide their address and contact number because they feel that they might be contacted through telemarketing and other purpose.


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INVESTMENT DECISION MAKING PATTERN OF INVESTORS 2.10 Chapter Scheme: Chapter.1 Introduction:-This chapter mainly deals with the Introduction to finance, financial

management, Behavioural finance, Investment pattern, various avenues of investment and various types of investment, investment process and the introduction to the problem. Chapter.2 Research Design:-A Research design serves as a bridge between what has been

done in the conduct of the study to realize the specified objectives. It is an outline of the projects working. Chapter.3 Company/Organizational Profile:-The current trends in the industry and brief

company profile will be outlined. The products and services the company offers will also be briefed. The company has been taken only for reference purpose and to understand the various product offered by any financial service company. Chapter.4 Data Analysis and Interpretation:-In this chapter using the data collected, the

information has been tabulated and an analysis has been drawn, on the basis of questionnaire, interview method and secondary data‟s. Hypothesis testing has been done in this chapter. Chapter.5 Summary of Findings, Suggestions and Conclusion:-In this chapter I have

actually include all that I have analyze and what has been found. Finally concluded by checking whether the objectives of the study have been achieved or not. At last a few suggestions from my side and the learning experience and exposures during my study. BIBLIOGRAPHY ANNEXURE


45



46


INDUSTRY & COMPANY PROFILE 3. 1 Industry Profile:

The Financial Markets have expanded and deepened rapidly over the last ten years. The Indian capital markets have witnessed a dramatic increase in institutional activity and more specifically that of FII‟s. This change in market environment has made the market more

innovative and competitive enabling the issuers of securities and intermediaries to grow. In India the institutionalization of the capital markets has increased with FII‟s becoming the

dominant owner of the free float of most blue chip Indian stocks. Institutions often trade large blocks of shares and institutional order‟s can have a major impact on market volatility. In smaller markets, institutional trades can potentially destabilize the markets. Moreover, institutions also have to design and time their trading strategies carefully so that their trades have maximum possible returns and minimum possible impact costs. 3.1.1 History of World Stock Market:

A stock market, or equity market, is a private or public market for the trading of company stock and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately. The size of the world stock market was estimated at about $36.6 trillion US at the beginning of October 2009. The total world derivatives market has been estimated at about $791 trillion face or nominal value, 11 times the size of the entire world economy. The stocks are listed and traded on stock exchanges which are entities, a corporation or mutual organization specialized in the business of bringing buyers and sellers of the organizations to a listing of stocks and securities together.


47

INVESTMENT DECISION MAKING PATTERN OF INVESTORS 3.2 Emergence of few Important Stock Exchanges: 3.2.1 London Stock Exchange - 1698

The London Stock Exchange isarguably the oldest of the world's major stockexchanges. The London Exchange can trace its history back to 1698 when its founder - John Castaing began to organize the market in Jonathan's Coffee-house via a simple list of stock and commodity prices. Today, this exchange lists 3,500companies representing 84countries. 3.2.2 New York Stock Exchange - 1792

The New York Stock Exchange or NYSE is arguably the oldest and most well known of all the American stock markets. The NYSE was formed in 1792 when two dozen stockbrokers from New York City had the idea to organize what was then a disorganized and chaotic method of stock trading. From those humble beginnings, the NYSE has continued to grow and today lists 2,800 companies with a total capitalization of nearly $20 trillion. 3.2.3 American Stock Exchange - 1849

The American Stock Exchange or Amex is a relatively recent addition to the world's stock markets. The history of this stock market begins with the Curb Exchange and the California Gold Rush of 1849. The Amex played an important part in the financial and business transactions associated with the mining industry in the 19th century. 3.2.4 Bombay Stock Exchange - 1875

The Bombay Exchange, also known as Mumbai, claims to be the oldest stock exchange in Asia, tracing its history back to 1875. In 2008, nearly 2,000,000 shares of stock traded daily on the Bombay Exchange.


48

INVESTMENT DECISION MAKING PATTERN OF INVESTORS 3.2.5 NASDAQ - 1971

It is a relatively recent addition on stock market history. And that's because of the importance of this particular exchange. At one time most companies aspired to betraded on the NYSE. That changed about 10 years agoand many large companies now trade onthe NASDAQ. Founded in 1971, the National Association of Securities Dealers Automated Quotation or NASDAQ was the first stock exchange to recognize the role of electronics in stock trading. 3.3 History of Indian Stock Market: 3.3.1 The Origin:

One of the oldest stock markets in Asia, the Indian Stock Markets have a 200 years old history. 18th Century: East India Company was the dominant institution and by end of the century,

business in its loan securities gained full momentum 1830's: Business on corporate stocks and shares in Bank and Cotton presses started in

Bombay. Trading list by the end of 1839 got broader 1840's: Recognition from banks and merchants to about half a dozen brokers 1850's: Rapid development of commercial enterprise saw brokerage business attracting

more people into the business 1860's: The number of brokers increased to 60 1860-61: The American Civil War broke out which caused a stoppage of cotton supply from

United States of America; marking the beginning of the "Share Mania" in India 1862-63: The number of brokers increased to about 200 to 250 1865: A disastrous slump began at the end of the American Civil War (as an example, Bank

of Bombay Share which had touched Rs. 2850 could only be sold at Rs. 87)


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INVESTMENT DECISION MAKING PATTERN OF INVESTORS 1874: With the rapidly developing share trading business, brokers used to gather at a street

(now well known as "Dalal Street") for the purpose of transacting business. 1875: "The Native Share and Stock Brokers' Association" (also known as "The Bombay

Stock Exchange") was established in Bombay 1880's: Development of cotton mills industry and set up of many others 1894: Establishment of "The Ahmadabad Share and Stock Brokers' Association" 1880 - 90's: Sharp increase in share prices of jute industries in 1870's was followed by a

boom in tea stocks and coal 1908: "The Calcutta Stock Exchange Association" was formed 1920: Madras witnessed boom and business at "The Madras Stock Exchange" was

transacted with 100 brokers. 1923: When recession followed, number of brokers came down to 3 and the Exchange was

closed down 1934: Establishment of the Lahore Stock Exchange 1936: Merger of the Lahore Stock Exchange with the Punjab Stock Exchange 1940: Uttar Pradesh Stock Exchange Limited and Nagpur Stock Exchange Limited was

established 1944: Establishment of "The Hyderabad Stock Exchange Limited" 3.3.2 Post-Independence:

The depression witnessed after the Independence led to closure of a lot of exchanges in the country. Lahore Stock Exchange was closed down after the partition of India, and later on merged with the Delhi Stock Exchange. Bangalore Stock Exchange Limited was registered in 1957 and got recognition only by 1963. Most of the other Exchanges were in a miserable state till 1957 when they applied for recognition under Securities Contracts (Regulations) Act, 1956.


50

INVESTMENT DECISION MAKING PATTERN OF INVESTORS 3.3.2.1 The Exchanges that were recognized under the Act were:

Bombay Calcutta Madras Ahmadabad Delhi Hyderabad Bangalore Indore 3.3.2.2 Many more stock exchanges were established during 1980's, namely:

Cochin Stock Exchange (1980) Uttar Pradesh Stock Exchange Association Limited (at Kanpur, 1982) Pune Stock Exchange Limited (1982) Ludhiana Stock Exchange Association Limited (1983) Gauhati Stock Exchange Limited (1984) Kanara Stock Exchange Limited (at Mangalore, 1985) Magadh Stock Exchange Association (at Patna, 1986) Saurashtra Kutch Stock Exchange Limited (at Rajkot, 1989) Vadodara Stock Exchange Limited (at Baroda, 1990) At present, there are twenty one recognized stock exchanges in India which does not include the Over The Counter Exchange of India Limited (OTCEI) and the National Stock Exchange of India limited (NSIE)


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INVESTMENT DECISION MAKING PATTERN OF INVESTORS Trading:

The trading on stock exchanges in India used to take place through open outcry without use of information technology for immediate matching or recording of trades. This was time consuming and inefficient. This imposed limits on trading volumes and efficiency. In order to provide efficiency, liquidity and transparency, NSE introduced a nation-wide on-line fullyautomated screen based trading system (SBTS) where a member can punch into the computer quantities of securities and the prices at which he likes to transact and the transaction is executed as soon as it finds a matching sale or buy order from a counter party. CHART 3.1: Chart Showing the Trading Network:

Requirements by stock exchange:

Companies must meet an exchange's requirements to have their stocks and shares listed and traded there, but requirements vary by stock exchange: Bombay Stock Exchange:

Bombay Stock Exchange (BSE) has requirements for a minimum market capitalization of Rs.250 Million and minimum public float equivalent to Rs.100 Million. PRESIDENCY BUSINESS SCHOOL

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INVESTMENT DECISION MAKING PATTERN OF INVESTORS London Stock Exchange:

The main market of the London Stock Exchange has requirements for a minimum market capitalization (£700,000), three years of audited financial statements, minimum public float (25 per cent) and sufficient working capital for at least 12 months from the date of listing. NASDAQ Stock Exchange:

To be listed on the NASDAQ a company must have issued at least 1.25 million shares of stock worth at least $70 million and must have earned more than $11 million over the last three years. New York Stock Exchange:

To be listed on the New York Stock Exchange (NYSE) a company must have issued at least a million shares of stock worth $100 million and must have earned more than $10 million over the last three years. 3.4 Markets around (Major Indices) Indian Markets: Nifty-50 stocks representing various sectors


Sensex-30 stocks representing various sectors

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INVESTMENT DECISION MAKING PATTERN OF INVESTORS 3.4.1 World Markets:

US : NASDAQ, S& P 500

LONDON STOCK EXCHANGE

NIKKEI 225,HANG SANG

EUROPE : CAC

3.4.2 Indian Stock Exchanges Formed Between 1904 – 2011: Madras Stock Exchange

Ahmedabad Stock Exchange


Kolkata Stock Exchange

Delhi Stock Exchange

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INVESTMENT DECISION MAKING PATTERN OF INVESTORS 3.5 Company Profile:

Type

:Public Company

Company Size

:10,001+ employees

Website

:http://www.indiainfoline.com

Industry

:Financial Services

Founded

:1995

Corporate Office

: IIFL Center, B Wing,Trade Centre, Kamala Mills Compound,

Off Senapati Bapat Marg, Lower Parel, Mumbai – 400013 Registered Office

:IIFL House, Sun Infotech Park, Road No. 16V, Plot No.B-23

Thane Industrial Area, Wagle Estate, Thane – 400604


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INVESTMENT DECISION MAKING PATTERN OF INVESTORS 3.5.1 Introduction to IIFL:

IIFL is the institutional equities division of India Infoline Ltd. (Bloomberg: IIFL IN), a listed multiservices financial company with a market capitalization of US$400 million. With a team of 25 research analysts, full-fledged sales and trading team, and an experienced investment banking team, IIFL is rapidly emerging as one of the premier institutional equities houses in India. Headquartered in Mumbai, IIFL has overseas offices in Singapore and Dubai. Amongst its other businesses, India Infoline is one of the leading players in the retail broking and insurance distribution, and is currently in the process of scaling up its non-banking financial services and wealth management franchises. The group has over 600 branches located all over India. 3.5.2 India Infoline Group:

We are a one-stop financial services shop, most respected for quality of its advice, personalized service and cutting-edge technology. The India Infoline group, comprising the holding company, india infoline limited and its whollyowned subsidiaries, straddle the entire financial services space with offerings ranging from equity research, equities and derivatives trading, commodities trading, portfolio management services, mutual funds, life insurance, fixed deposits, bonds and other small savings instruments to loan products and investment banking. India Infoline also owns and manages the websites www.indiainfoline.com and www.5paisa.com the company has a network of over 2100 business locations (branches and sub-brokers) spread across more than 450 cities and towns. the group caters to approximately a million customers. 3.5.3

India Infoline Group subsidiaries:

India Infoline Media and Research Services Limited India Infoline Commodities Limited India Infoline Marketing & Services PRESIDENCY BUSINESS SCHOOL

56

INVESTMENT DECISION MAKING PATTERN OF INVESTORS India Infoline Investment Services Limited

IIFL (Asia) Pte Limited 3.5.4

Our Global Presence:

o o o

USA

o o o

Dubai

o o o

Singapore

3.5.5

Vision Statement:

Our vision is to be the most respected company in the financial services space. CHART 3.2: Chart Showing the Corporate Structure of IIFL: IIFL Investment Services

Money line Credit

IIFL Ventures

IIFL Housing Finance

IIFL Commodities

IIFL Distribution Co.

INDIA INFOLINE LTD.

IIFL (Asia) Pte

(NSE: INDIAINFO,

IIFL Marketing & Services

IIFL Insurance

BSE: 532636, Bloomber : IIFL IN

IIFL Realty

Services

IIFL Insurance Brokers

IIFL Research & media services IIFL Capital IIFL Wealth Management

Source: secondary data, www.indiainfiline.com, date: 15-03-2012 Note: The above chart does not cover all groups of companies


57

INVESTMENT DECISION MAKING PATTERN OF INVESTORS 3.6.3 Board of Directors: Mr. Nirmal Jain

Chairman, India Infoline Ltd. Mr. Kranti Sinha

Independent Director, India Infoline Ltd.

Mr. Nilesh Vikamsey


Mr. A. K. Purwar


TABLE 3.1: Table Showing the Management Team of IIFL: MANAGEMENT AREA

LEADING PERSON

Institutional Equities

H.Nemkumar

Investment Banking

Nipun Goel

Credit and Finance

Pratima Ram

Retail Broking

Prasanth Prabhakaran

Wealth Management

Karan Bhagat

International Operations

Bharat Parajia

Offshore Asset Management

Deepesh Pandey

Insurance Distribution

Mukesh Kumar Singh

Source: secondary data, ww w.indiainfoline.com, Date: 07-03-2012. PRESIDENCY BUSINESS SCHOOL

58

INVESTMENT DECISION MAKING PATTERN OF INVESTORS 3.6 Services Offered: Equities Broking (NSE,BSE) Portfolio Management Services Commodity Futures Mortgage Depository Services ( NSDL, CDSL) Credit and Finance Insurance Wealth Management Services Investment Banking Online support for all financial services

3.7.1 Equities Broking

IIFL is a member of BSE and NSE registered with NSDL and CDSL as a depository participant and provides broking services in the cash, derivatives and currency segments, online and offline. IIFL is a dominant player in the retail as well as institutional segments of the market. It recently became the first Indian broker to get a membership of the Colombo Stock Exchange and is also the first Indian broker to have received an in-principle approval for membership of the Singapore Stock Exchange. IIFL‟s Trader Terminal, its proprietary trading platform, is

widely acknowledged as one of the best available for retail investors. Investors opt for IIFL given its unique combination of superior Service, cutting-edge proprietary Technology, Advice powered by world-acclaimed research and its unparalleled Reach owing to its over 2500 business locations across over 500 cities in India.


59

INVESTMENT DECISION MAKING PATTERN OF INVESTORS Transaction charges are reasonable at IIFL:

0.5% all inclusive for trades that result into delivery 0.1% all-inclusive for intra-settlement trades Note: subject to a minimum brokerage of 5 paisa per share (intra-settlement trade) and

10 paisa per share (delivery trade) Trading account opening charges = Rs750 only No transaction charges for depository participant (DP) account. Note: our non-trading DP clients are charged 0.02% and 0.04% of trade value for

purchase and sale transactions respectively. DP account maintenance charges (Rs75 per quarter) waived until October 31, 2007 3.7.2 Portfolio Management Services

Our Portfolio Management Service is a product wherein an equity investment portfolio is created to suit the investment objectives of a client. We at Indiainfoline invest your resources into stocks from different sectors, depending on your risk-return profile. This service is particularly advisable for investors who cannot afford to give time or don't have that expertise for day-to-day management of their equity portfolio. 3.7.3 Commodities Futures

IIFL offers commodities trading to its customers vide its membership of the MCX and the NCDEX. Our domain knowledge and data based on in depth research of complex paradigms of commodity kinetics, offers our customers a unique insight into behavioral patterns of these markets. Our customers are ideally positioned to make informed investment decisions with a high probability of success.


60

INVESTMENT DECISION MAKING PATTERN OF INVESTORS 3.7.4 Mortgage

During the year under review, Indiainfoline acquired a 75% stake in Moneytree Consultancy Services to mark its foray into the business of mortgages and other loan products distribution. The business is still in the investing phase and at the time of the acquisition was present only in the cities of Mumbai and Pune. The Company brings on board expertise in the loans business coupled with existing relationships across a number of principals in the mortgage and personal loans businesses. Indiainfoline now has plans to roll the business out across its pan-Indian network to provide it with a truly national scale in operations. 3.7.5 Credit and finance

IIFL offers a wide array of secured loan products. Currently, secured loans (mortgage loans, margin funding, loans against shares) comprise 94% of the loan book. The Company has discontinued its unsecured products. It has robust credit processes and collections mechanism resulting in overall NPAs of less than 1%. The Company has deployed proprietary loanprocessing software to enable stringent credit checks while ensuring fast application processing. Recently the company has also launched Loans against Gold. 3.7.6 Insurance

IIFL entered the insurance distribution business in 2000 as ICICI Prudential Life Insurance Co. Ltd‟s corporate agent. Later, it became an Insurance broker in October 2008 in line with its strategy to have an „open architecture‟ model. The Company now distributes products of major

insurance companies through its subsidiary India Infoline Insurance Brokers Ltd. Customers can choose from a wide bouquet of products from several insurance companies including Max New York Life Insurance, MetLife, Reliance Life Insurance, Bajaj Allianz Life, Birla Sunlife, Life Insurance Corporation, Kotak Life Insurance and others.


61

INVESTMENT DECISION MAKING PATTERN OF INVESTORS 3.7.7 Wealth Management Service

IIFL offers private wealth advisory services to high-net-worth individuals (HNI) and corporate clients under the „IIFL Private Wealth‟ brand. IIFL Private Wealth is managed by a qualified

team of MBAs from IIMs and premier institutes with relevant industry experience. The team advises clients across asset classes like sovereign and quasi-sovereign debt, corporate and collateralised debt, direct equity, ETFs and mutual funds, third party PMS, derivative strategies, real estate and private equity. It has developed innovative products structured on the fixed income side. 3.7.8 Investment Banking IIFL‟s investment banking division was launched in 2006. The business leverages upon its

strength of research and placement capabilities of the institutional and retail sales teams. Our experienced investment banking team possesses the skill-set to manage all kinds of investment banking transactions. Our close interaction with investors as well as corporates helps us understand and offer tailor-made solutions to fulfill requirements. 3.7.9 SMS Services: (Stay connected to the market)

The trader of today, you are constantly on the move. But how do you stay connected to the market while on the move? Simple, subscribe to Indiainfoline's Stock Messaging Service and get Market on your Mobile! There are three products under SMS Service:

Market on the move. Best of the lot. VAS (Value Added Service


62

INVESTMENT DECISION MAKING PATTERN OF INVESTORS 3.8 Over the last five years, India Infoline sharpened its competitive edge through the following initiatives: 3.8.1 Multi-channel delivery model:

The Company is among the few financial intermediaries in India to offer a complement of online and offline broking. The Companies network of branches also allows customers to place orders on phone or visit our branches for trading. 3.8.2 Integrated middle and back office:

The customer can trade on the BSE and NSE, in the cash as well as the derivatives segment all through the available multiple options of Internet, phone or branch presence. 3.8.3 Multiple-trading options:

The Company harnessed technology to offer services at among the lowest rates in the business. 3.8.4 Technology:

The Company provides a prudent mix of proprietary and outsourced technologies, which facilitate business growth without a corresponding increase in costs. 3.8.5 Customer Service:

Clients can access the customer service team through various media like toll-free lines, emails and Internet- messenger chat for instant query resolution. The Companies customer service executives proactively contact customers to inform them of key changes and initiatives taken by the Company. Business World rated the Companies customer service as Best in their survey of online trading sites carried out in December 2003.


63

INVESTMENT DECISION MAKING PATTERN OF INVESTORS 3.9 Key Features: 1)

Membership on the Bombay Stock Exchange Limited and the National Stock Exchange

2)

Registered with the NSDL as well as CDSL as a depository participant, providing a one-stop solution for clients trading in the equities market

3)

Broking services in cash and derivative segments, online as well as offline.

4)

Presence across 350 cities and towns with a network of over 850 business locations Equity client base of over 500,000 clients

5)

Provision of free and world-class research to all clients.

3.10 Competitors:

KARVY

INDIA BULLS

ICICI

MOTILAL OSWAL

REL. SECURITIES


ANAGRAM

ANGEL BROKING

KOTAK SECURITEIS

SHAREKHAN

64

INVESTMENT DECISION MAKING PATTERN OF INVESTORS TABLE 3.2: Table Showing Comparison of Brokerage Charges in India:

Online Broker

Brokerage for Delivery

Brokerage for Intraday trading

MMC*

R K Global Shares & Securities brokerage charges

0.20% - 0.30%

0.02% - 0.03%

NIL

SBICAP Securities brokerage charges

0.50%

0.10%

NIL

Sharekhan brokerage charges

0.03% - 0.50%

0.03% - 0.10%

NIL

Motilal Oswal brokerage charges

0.30% - 0.50%

0.03% - 0.15%

5 paisa brokerage charges

0.25% - 0.85%

0.07%

0.50%

0.02% - 0.03%

ICICI direct brokerage charges

0.75%

0.15%

Indiabulls brokerage charges

0.25% - 0.50%

0.05% - 0.10%

HDFC Securities brokerage charges

0.50%

0.15%

UTI Securities brokerage charges

0.80%

0.15%

Religare brokerage charges

0.20% - 0.30%

0.02% - 0.03%

Reliance Money brokerage charges

0.01%

0.01%

0.30%

0.03%

0.50%

0.10%

Angel Broking brokerage charges

Geogit brokerage charges Indiainfoline brokerage charges

card system

-

Source: secondary data, http://niftyprediction.blogspot.in, date: - 19-04-2012 PRESIDENCY BUSINESS SCHOOL

65

INVESTMENT DECISION MAKING PATTERN OF INVESTORS CHART 3.3: Chart Showing the SWOT Analysis: ENVIRONMENTAL SCAN

INTERNAL ANALYSIS

STRENGTHS

EXTERNAL ANALYSIS

WEAKNESS

OPPURTUNITIE

THREAT

SWOT MATRIX

3.11 SWOT Analysis:

What makes IIFL better than its competitors? 3.11.1 Strength of IIFL

Online trading platform. IIFL offers its clients a pool of financial services and products: No annual maintenance charges at all. No custodial charge for AUC. It does not keep any condition as to collect minimum amount of brokerage from its clients. Most competitive BROKERAGE and DP charges (on delivery 0.5% and on intraday 0.1%) Equity analysis report to support the investment decision of its clients. Trading via branch network, telephones and internet account i.e. both online and offline to its clients. Induction of new employees through an extensive computer based training module.


66

INVESTMENT DECISION MAKING PATTERN OF INVESTORS 3.11.2 Weakness of IIFL:

It should have its own mutual funds and should provide advises in mutual fund. It should provide tips via SMS every hour of trading. Not in Position to answer the questions of their clients relating to the current market position as they are on fields. Unlike some of its competitors like ICICI and Kotak, IIFL does not provide a complete catalogue of financial services (e.g. Banking facility). Due to the continuous need to meet the targets, some of the Relationship managers fell pressure and thus leave the organization. 3.11.3 Opportunities to IIFL:

Financial services like banking service. Market expansion i.e. opening branches at untapped areas like Assam. IIFL is registered with NSE, BSE and so can target other stock exchanges as well. ATM facility should be provided for easy withdrawals to investors. The Capital market in the last few years has turned out to be one of the favorable avenues for the retail investors and institutional investors. Scope of online trading on other stock exchanges. 3.11.4 Threats to IIFL:

Companies like Share khan, ICICI Direct, Kotak, and Private Brokers are major threats to IIFL. Local brokers are capable of charging lower brokerage. Industry competitors chasing for the same target segment. Changes in SEBI guidelines & tax implications. Government Rules Regulations.


67



68


DATA ANALYSIS & INTERPRETATION: TABLE 4.1: Table Showing the Distribution of Age of Investors: SL NO.

AGE-GROUP

NO. OF INVESTORS

PERCENTAGE

1

20-30

46

52.28%

2

31-40

24

27.27%

3

41-50

12

13.64%

4

51 & Above

06

6.81%

Total

88

100%

Source: Primary Data, Questionnaire. GRAPH 4.1: Graph Showing the Distribution of Age of Investors:

60 50 40 30

52.28

20 27.27

10

13.64

6.81 0 20-30

31-40

41-50

51 & ABOVE

Source: Primary Data, Table No. 4.1 Interpretation: From the above table & graph, it can be observed that 52.28% of the investors

are between the age group of 20-30 and 27.27% are between the age group of 31-40. It means almost 80% of the investors are young in age.


69

INVESTMENT DECISION MAKING PATTERN OF INVESTORS TABLE 4.2: Table Showing the Investment Preference of Investors According to Their Age Group: AGE GROUP

BANK

EQUITY

MUTUAL

REAL

FUNDS

STATE

DEPOSITS SHARES

INSURANCE

BONDS

Row Total

20-30

8

9

5

18

6

0

46

31-40

5

6

2

5

5

1

24

41-50

6

1

1

1

3

0

12

51 & Up

3

0

0

0

0

3

06

Column

22

16

08

24

14

04

88

Total Source: Primary Data, Questionnaire TABLE 4.2.1:Table Showing Test of Significant Relationship Between the Age of the Investors and Their Investment Preference by Using Chi-Square Test at 5% level of Significant: OBSERVED

EXPECTED

OBSERVED −

(O−E)²

FREQUENCY (O)

FREQUENCY (E)

EXPECTED (O−E)

E

8

11.5

-3.50

1.065

5

6.00

-1.00

0.167

6

3.00

3.00

3.000

3

1.50

1.50

1.500

9

8.36

0.64

0.049

6

4.36

1.64

0.617

1

2.18

-1.18

0.639

0

1.09

-1.09

1.090

5

4.18

0.82

0.160

2

2.18

-0.18

0.015

1

1.09

0.09

0.007

0

0.54

-0.54

0.540


70

INVESTMENT DECISION MAKING PATTERN OF INVESTORS 18

12.54

5.46

2.377

5

6.54

-1.54

0.363

1

3.27

-2.27

1.575

0

1.63

-1.63

1.630

6

7.32

-1.32

0.238

5 3

3.18 1.91

1.82 1.09

1.041 0.622

0

0.95

-0.95

0.950

0

2.09

-2.09

2.090

1

1.09

0.09

0.007

0

0.54

-0.54

0.540

3

0.27

2.73

27.603 X² = 47.885

Source: Primary Data, Table No. 4.2 Formula to calculate Chi-Square Value:

X² = (Observed frequency – Expected frequency)² Expected frequency Formula to calculate Expected Frequency:

E ji = O.j × Oi. O.. Calculation of Degree of Freedom:

= (R-1) × (C-1) = (4-1) × (6-1) = 3 × 5 =15

Df

Chi-Square Table Value @ 5% level of significant and the 15 of degree of freedom is = 31.410 Interpretation: The calculated value of Chi-Square is 47.885. The Chi-Square value at 5%

level of significant and 15 of degree of freedom is 31.410. As the calculated value of ChiSquare is more than the value in Chi-Square table, hence the Alternative hypothesis is accepted i.e. there is an association between the age of the investors and their investment decision. PRESIDENCY BUSINESS SCHOOL

71

INVESTMENT DECISION MAKING PATTERN OF INVESTORS TABLE 4.3: Table Showing the Investment objectives of Investors According to their Age Group: AGE

HIGH

FUTURE

MEET

OTHER

Row

GROUP

PROFITS

NEEDS

EMERGENCY

REASONS

Total

20-30

18

15

5

8

46

31-40

5

15

3

1

24

41-50

3

7

2

0

12

51&Above 0

1

4

1

06

Column

38

14

10

88

26

Total Source: Primary Data, Questionnaire. TABLE 4.3.1: Table Showing the Test of Significant Relationship Between Age of the Investors and Their Investment Objectives by Using Chi-Square Test at 5% level of Significant: OBSERVED

EXPECTED

OBSERVED −

(O−E)²

FREQUENCY (O)

FREQUENCY (E)

EXPECTED (O−E)

E

18

13.59

4.41

1.431

5

7.09

-2.09

0.616

3

3.54

-0.54

0.082

0

1.77

-1.77

1.770

15

19.86

-4.86

1.189

15

10.36

4.64

2.078

7

5.18

1.82

0.639

1

2.59

-1.59

0.976

5

7.32

-2.32

0.735

3

3.81

-0.81

0.172

2

1.91

0.09

0.007

4

0.95

3.05

9.792


72


5.23

2.77

1.467

1

2.73

-1.73

1.096

0

1.36

-1.36

1.360

1

0.68

0.32

0.150 X² = 23.560




Df = (R-1) × (C-1) = (4-1) × (4-1) = 3 × 3 = 9 Chi-Square Table Value @ 5% level of significant and the 9 of degree of freedom is = 16.919 Interpretation: The calculated value of Chi-Square is 23.560. The Chi-Square value at 5%

level of significant and 9 of degree of freedom is 16.919. As the calculated value of Chi-Square is more than the value in Chi-Square table, hence the Alternative hypothesis is accepted i.e. there is an association between the age of the investors and their investment decision.


73

INVESTMENT DECISION MAKING PATTERN OF INVESTORS TABLE 4.4: Table Showing the Risk Taking Ability of Investors According to Their Age Group: AGE

LOW-RISK LOW-

MODARATE-RISK

HIGH-RISK

Row

GROUP

RETURN

MODARATE-RETURN

HIGH-RETURN

Total

20-30

13

5

28

46

31-40

10

6

8

24

41-50

2

8

2

12

51&Above

5

1

0

06

Column

30

20

38

88

Total Source: Primary Data, Questionnaire. TABLE 4.4.1: Table Showing the Test of Significant Relationship Between Age of the Investors and Their Risk Taking Ability by Using Chi-Square Test at 5% level of Significant: OBSERVED

EXPECTED

OBSERVED −

(O−E)²

FREQUENCY (O)

FREQUENCY (E)

EXPECTED (O−E)

E

13

15.68

-2.68

0.458

10

8.18

1.82

0.405

2

4.09

-2.09

1.068

5

2.04

2.96

4.295

5

10.45

-5.45

2.842

6

5.45

0.55

0.055

8

2.72

5.28

10.249


74


1.36

0.36

0.095

28

19.86

8.14

3.336

8

10.36

-2.36

0.537

2

5.18

-3.18

1.952

0

2.59

-2.59

2.590 X² = 27.882





level of significant and 6 of degree of freedom is 12.592. As the calculated value of Chi-Square is more than the value in Chi-Square table, hence the Alternative hypothesis is accepted i.e. there is an association between the age of the investors and their investment decision.


75

INVESTMENT DECISION MAKING PATTERN OF INVESTORS TABLE 4.5 Table Showing the Duration of Investment According to Age Group of Investors: AGE

Row

GROUP

LONG-TERM INVESTMENT

SHORT-TERM INVESTMENT

Total

20-30

19

27

46

31-40

16

8

24

41-50

11

1

12

51&Above

6

0

06

Column

52

36

88

Total Source: Primary Data, Questionnaire. TABLE 4.5.1: Table Showing the Test of Significant Relationship Between Age of the Investors and Investment Duration by Chi-Square Test at 5% level of Significant: OBSERVED

EXPECTED

OBSERVED −

(O−E)²

FREQUENCY (O)

FREQUENCY (E)

EXPECTED (O−E)

E

19

27.18

-8.18

2.462

16

14.14

1.86

0.245

11

7.09

3.91

2.156

6 27

3.54 18.81

2.46 8.19

1.709 3.566

8

9.81

-1.81

0.334

1

4.91

-3.91

3.114

0

2.46

-2.46

2.460 X² = 16.046

Source: Primary Data, Table No. 4.5


76

INVESTMENT DECISION MAKING PATTERN OF INVESTORS Formula to calculate Chi-Square Value:



Df = (R-1) × (C-1) = (4-1) × (2-1) = 3 × 1 = Chi-Square Table Value @ 5% level of significant and the 3 of degree of freedom is = 7.815 Interpretation: The calculated value of Chi-Square is 16.046. The Chi-Square value at 5%

level of significant and 3 of degree of freedom is 7.815. As the calculated value of Chi-Square is more than the value in Chi-Square table, hence the Alternative hypothesis is accepted i.e. there is an association between the age of the investors and their investment decision. TABLE 4.6: Table Showing the Age of the Investors and Their Opinion Source: AGE

SHARE

GROUP

BROKER

20-30

12

31-40

MAGAZINE

T.V.

NEWS

FRIENDS &

Row

CHANNEL

PAPERS

RELATIVES

Total

2

8

5

19

46

16

2

0

1

5

24

41-50

8

0

2

0

2

12

51&Above

6

0

0

0

0

06

Column

42

04

10

06

26

88

Total Source: Primary Data, Questionnaire.


77

INVESTMENT DECISION MAKING PATTERN OF INVESTORS TABLE 4.6.1: Table Showing the Test of Significant Relationship Between the Age of the Investors and Their Opinion Source by Chi-Square Test at 5% level of Significant: OBSERVED

EXPECTED

OBSERVED −

(O−E)²

FREQUENCY (O)

FREQUENCY (E)

EXPECTED (O−E)

E

12

21.95

-9.95

4.450

16

11.45

4.55

1.810

8

5.73

2.27

0.899

6

2.86

3.14

3.447

2

2.09

-0.09

0.004

2

1.09

0.91

0.759

0

0.54

-0.54

0.540

0

0.27

-0.27

0.270

8

5.22

2.78

1.480

0 2

2.72 1.36

-2.72 0.64

2.720 0.301

0

0.68

-0.68

0.680

5

3.14

1.86

1.101

1

1.64

0.64

0.249

0

0.82

-0.82

0.820

0

0.41

-0.41

0.410

19

13.59

5.41

2.153

5

7.09

-2.09

0.616

2 0

3.54 1.77

-1.54 -1.77

0.669 1.770 X² = 25.148


X² = (Observed frequency – Expected frequency)² Expected frequency


78

INVESTMENT DECISION MAKING PATTERN OF INVESTORS Formula to calculate Expected Frequency:



level of significant and 12 of degree of freedom is 21.026. As the calculated value of ChiSquare is more than the value in Chi-Square table, hence the Alternative hypothesis is accepted i.e. there is an association between the age of the investors and their investment decision. TABLE 4.7: Table showing the All Results of Hypothesis Testing: SL NO.

Particulars

X²

df

Table Value

Analyse

Results

1

Preference

47.885

15

31.410

X² > TV

Accept H1

2

Objectives

23.560

9

16.919

X² > TV

Accept H1

3

Risk

27.882

6

12.592

X² > TV

Accept H1

4

Duration

16.046

3

7.815

X² > TV

Accept H1

5

Opinion

25.148

12

21.026

X² > TV

Accept H1

Source: Table No. 4.2.1, 4.3.1, 4.4.1, 4.5.1, 4.6.1 Interpretation: The above table shows that the calculated Chi-Square value of all the factors

are more than the table value of Chi-Square i.e. calculated value > table value. So, we can say that null hypothesis should be rejected and alternative hypothesis should be accepted. By seeing the above table we can say that there is an association between the age of the investors and their investment behaviour. PRESIDENCY BUSINESS SCHOOL

79

INVESTMENT DECISION MAKING PATTERN OF INVESTORS TABLE 4.8: Table Showing the Distribution of Investors According to Gender: SL NO.

PARTICULARS

NO. OF RESPONDENTS

PERCENTAGE

1

Male

69

78%

2

Female

19

22%

Total

88

100%

Source: primary data, Questionnaire. GRAPH 4.2: Graph Showing the Distribution of Investors According to Gender:

80 70 60 50 78

FEMALE

40

MALE 30 20 22

10 0 MALE

FEMALE

Source: Table No. 4.8 Interpretation: It can be observed from the above table & graph that out of the total

respondent surveyed, 78% of the respondents belongs to male category and 22% belongs to female category. It means male are investing more than female investors, reasons may be knowledge, education, etc.


80

INVESTMENT DECISION MAKING PATTERN OF INVESTORS TABLE 4.9: Table Showing the Distribution of Investors According to Qualification: SL NO.

PARTICULARS

NO. OF RESPONDENTS

PERCENTAGE

1

Post Graduation

39

44%

2

Graduation

21

24%

3

Under Graduation

12

14%

4

Other

16

18%

Total

88

100%

Source: Primary data, Questionnaire. GRAPH 4.3: Graph Showing the Distribution of Investors According to Qualification: OTHER 18%

UNDER GRADUATE 14% POST GRADUATE 44%

GRADUATE 24%

Source: Table No. 4.9 Interpretation: It can be observed from the above table & graph that out of the total

respondent surveyed, 44% of them is post graduate, 24% of them are graduate, while 14% are under graduate and 18% are having other qualification. It indicates most of the investors are highly educated and knows the need for investment and future planning.


81

INVESTMENT DECISION MAKING PATTERN OF INVESTORS TABLE 4.10: Table Showing the Distribution of Respondents According to Occupation: SL NO.

PARTICULARS

NO. OF RESPONDENTS

PERCENTAGE

1

Service

21

24%

2

Business

12

14%

3

Self-Employed

32

36%

4

Other

23

26%

Total

88

100%

Source: Primary data, Questionnaire. GRAPH 4.4: Graph Showing the Distribution of Respondents According to Occupation:

40 35 30 25 20 36

15 26

10

24 14

5 0 SERVICE

BUSINESS

SELF-EMPLOYED

OTHER

Source: Table No 4.10 Interpretation: It can be observed from the above table & graph that 36% of the respondents

are self employed, 26% are from other categories like, Doctors, lowers, professors, etc. While 24% of them are from service industry and 14% are businessmen. It means self-employed persons are more interested in investments.


82

INVESTMENT DECISION MAKING PATTERN OF INVESTORS TABLE 4.11: Table Showing the Distribution of Respondents According to Age Group: SL NO.

PARTICULARS

NO. OF RESPONDENTS

PERCENTAGE

1

20 - 30

46

52.28%

2

31 – 40

24

27.27%

3

41 – 50

12

13.64%

4

51 & Above

06

6.81%

Total

88

100%

Source: primary data, Questionnaire. GRAPH 4.5: Graph Showing the Distribution of Respondents According to Age Group:

13.64%

6.81%

20 - 30

27.27% 52.28%

31 - 40 41 - 50 51 & ABOVE

Source: Table No. 4.11 Interpretation: From the above table & graph, it can be observed that out of the total

respondent surveyed, 52.28% of the respondents belongs to the age group between 20-30 years, 27.27% are belongs to the age group of 31-40 years. While 13.64% belongs to age group between 41-50 years and only 6.81% are above 51 years. It indicates the young investors are more eager to invest to meet future needs and due to high risk taking ability.


83

INVESTMENT DECISION MAKING PATTERN OF INVESTORS TABLE 4.12: Table Showing the Respondents According to Gross Monthly Income: SL NO.

PARTICULARS

NO. OF RESPONDENTS

PERCENTAGE

1

Bellow -15000

23

26%

2

15001-25000

30

34%

3

25001-35000

19

22%

4

35001-45000

12

14%

5

45001 & Above

04

04%

Total

88

100%

Source: Primary data, Questionnaire. GRAPH 4.6: Graph Showing the Respondents According to Gross Monthly Income:

35 30 25 45001&ABOVE

20 15

34

35001-45000

26

10 5

25001-35000

22

15001-25000 14 BELLOW-15000

0 4

Source: Table No. 4.12 Interpretation: From the above table & graph, it has been observed that 26% of the

respondents are from the income group of bellow 15000, 34% are from the income group between 15001-25000, 22% are from the income group between 25001-35000. While 14% of them are from the income group between 35001-45000 and only 4% are falling in the income group above 45001. It means the average income in Bangalore city is 25000-35000. PRESIDENCY BUSINESS SCHOOL

84

INVESTMENT DECISION MAKING PATTERN OF INVESTORS TABLE 4.13: Table Showing the Distribution of Gross Monthly Savings of Respondents: SL NO.

PARTICULARS

NO.OF RESPONDENTS

PERCENTAGE

1

Less than-5000

21

24%

2

5001-10000

33

38%

3

10001-15000

18

20%

4

15001&Above

16

18%

Total

88

100%

Source: Primary data, Questionnaire. GRAPH 4.7: Graph Showing the Distribution of Gross Monthly Savings of Respondents:

40 35 30 15001&ABOVE

25

10001-15000 20

38

5001-10000

15

LESS THAN 5000 24

10

20

18

5 0

Source: Table No. 4.13 Interpretation: The above table & graph shows that 24% of the respondent‟s savings is less

than 5000, 38% of them saves between 5001-10000, 20% saves between 10001-15000 while 18% could able to save 15001 & above. It says that the middle class family are saving more than any other group of people.


85

INVESTMENT DECISION MAKING PATTERN OF INVESTORS TABLE 4.14: Table Showing the No. of Respondents Who Invest Their Money: SL NO.

PARTICULARS

NO. OF RESPONDENTS

PERCENTAGE

1

Yes

88

88%

2

No

12

12%

Total

100

100%

Source: Primary data, Questionnaire. GRAPH 4.8: Graph Showing the No. of Respondents Who Invest Their Money:

90 80 70 60 NO 50

YES

88

40 30 20 12

10 0 YES

NO

Source: Table No. 4.14 Interpretation: It can be clearly make out from the above table & graph that 88% of the

respondents are investors in one or other way and 12% of them are not investing yet but may be invest in near future. It means more number of respondents are investing their money to grow, and get a better return to use in future.


86

INVESTMENT DECISION MAKING PATTERN OF INVESTORS TABLE 4.15: Table Showing the Reasons for Not Investing Money: SL NO.

PARTICULARS

NO. OF RESPONDENTS

PERCENTAGE

1

Risk Factor

04

33.33%

2

Lack of Knowledge

02

16.67%

3

Return Factor

02

16.67%

4

Lack of Advice

04

33.33%

Total

12

100%

Source: Primary data, Questionnaire. GRAPH 4.9: Graph Showing the Reasons for Not Investing Money:

35 30

LACK OF ADVICE

25

RETURN FACTOR

20 33.33

33.33

15 10

16.67

LACK OF KNOWLEDGE RISK

16.67

5 0 RISK

LACKOF KNOWLEDGE

RETURN FACTOR

LACK OF ADVICE

Source: Table No. 4.15 Interpretation: The above table & graph shows that 33.33% of the non-investors do not invest

their money because of risk, 16.67% are not investing due to lack of knowledge, again 16.67% are concern about return and 33.33% are not investing due to lack of advice. It indicates the risk and the lack of advice are the two main reasons for not investing.


87

INVESTMENT DECISION MAKING PATTERN OF INVESTORS TABLE 4.16: Table Showing the Preference of Investors for Investment Options: SL NO.

PARTICULARS

NO. OF INVESTORS

PERCENTAGE

1

Bank Deposits

22

25%

2

Shares

16

18.2%

3

Mutual Funds

08

9.1%

4

Real States

24

27.3%

5

Insurance

14

15.9%

6

Bonds

04

4.5%

Total

88

100%

Source: primary data, Questionnaire.

GRAPH 4.10: Graph Showing the Preference of Investors for Investment Options:

4.5

BANK DEPOSITS 25

15.9

SHARES MUTUAL FUNDS REAL STATES

27.3

18.2

INSURANCE BONDS

9.1

Source: Table No. 4.16 Interpretation: The above table & graph tells us that 27.3% of the investors prefer to invest in

Real states, 25% are interested in Bank deposits, 18.2% want to go for Share market, and 15.9% want to invest in insurance. While 9.1% are interested in Mutual funds and only 4.5% preferred to invest in Bonds. It says that the investors prefer to invest more in bank deposits and in real states because of guaranteed returns.


88

INVESTMENT DECISION MAKING PATTERN OF INVESTORS TABLE 4.17: Table Showing the Investment Objectives of Various Investors: SL NO.

PARTICULARS

NO. OF INVESTORS

PERCENTAGE

1

High Return

26

29.5%

2

Meet Future needs

38

43.2%

3

Meet Emergency

14

15.9%

4

Other reasons

10

11.4%

Total

88

100%

Source: Primary data, Questionnaire. GRAPH 4.11: Graph Showing the Investment Objectives of Various Investors:

45 40 35 OTHER REASONS

30

MEET EMERGENCY

25 43.2

20 15

FUTURE NEEDS 29.5

10 5

HIGH RETURNS 15.9 11.4

0

Source: Table No. 4.17 Interpretation: We can see in the above table & graph that 29.5% of the investors invest to get

high return, 43.2% invest to meet future needs, 15.9% invest to meet emergency requirement, while 11.4% invest for other reasons like safety, liquidity, etc. It indicates investors want high returns to meet future needs.


89

INVESTMENT DECISION MAKING PATTERN OF INVESTORS TABLE 4.18: Table Showing the No. of Investors Trade in Share Market: SL NO.

PARTICULARS

NO. OF INVESTORS

PERCENTAGE

1

Yes

38

43.2%

2

No

50

56.8%

Total

88

100%

Source: Primary data, Questionnaire. GRAPH 4.12: Graph Showing the No. of Investors Trade in Share Market:

60 50 40

NO YES

30 56.8 43.2

20 10 0 YES

NO

Source: Table No. 4.18 Interpretation: The above table & graph shows that out of the total investors, 43.2% invest in

share market while 56.8% do not invest in share market. This 56.8% investors invest in other investment options available in market. It says that more number of investors do not invest in share market due to high volatility and less awareness.


90

INVESTMENT DECISION MAKING PATTERN OF INVESTORS TABLE 4.19: Table Showing the Mode of Investment in Share Market: SL NO.

PARTICULARS

NO. OF INVESTORS

PERCENTAGE

1

Hedging

14

15.8%

2

Speculation

32

36.8%

3

Investment

42

47.4%

Total

88

100%

Source: Primary data, Questionnaire. GRAPH 4.13: Graph Showing the Mode of Investment in Share Market:

47.40%

36.80%

HEDGING 15.80%

SPECULATIO N

Source: Table No.4.19 Interpretation: It can be observed from the above table & graph that out of the total investors

who invest in share market, 47.40% of the investors trade as investment (long-term or shortterm), 36.8% trade as speculation, while 15.8% go for hedging. It means less number of investors go for hedging, the go for speculation or pure investment.


91

INVESTMENT DECISION MAKING PATTERN OF INVESTORS TABLE4.20: Table Showing Awareness of Investors about Various Investment Options: SL NO.

PARTICULARS

NO. OF INVESTORS

PERCENTAGE

1

Fixed/Other Deposits

88

100%

2

Insurance

88

100%

3

Equity Market

64

73%

4

Bonds

36

41%

5

Mutual Funds

46

52%

6

Others

56

63%

Source: Primary data, Questionnaire. GRAPH 4.14: Graph Showing Awareness of Investors about Various Investment Option:

100 90 80

OTHERS

70

MUTUAL FUNDS

60 50

100

100

40

BONDS 73

30 20

52

63

EQUITY MARKET

41

10 0

Source: Table No. 4.20 Interpretation: The above table & graph help us to understand that 100% of the investors

aware of Bank/other deposits, 73% of them knows about equity market, 41% & 52% are aware of Bonds & Mutual funds respectively, while 63% are aware of other investment options( Gold, silver, precious stones & arts). It says that every investor are well known about the deposits and insurance plans but less aware of other investment avenues, mainly bonds. PRESIDENCY BUSINESS SCHOOL

92

INVESTMENT DECISION MAKING PATTERN OF INVESTORS TABLE 4.21: Table Showing Preference of Investors to Deal with Intermediaries: SL NO.

PARTICULARS

NO. OF INVESTORS

PERCENTAGE

1

Kotak Security

22

25%

2

Indiabulls

14

16%

3

India Infoline

14

16%

4

HDFC

04

4.5%

5

Reliance Money

06

6.8%

6

Sharekhan

28

31.7%

TOTAL

88

100%

Source: Primary data, Questionnaire. GRAPH 4.15: Graph Showing Preference of Investors to Deal with Intermediaries:

35 30 SHAREKHAN 25

RELIANCE MONEY HDFC

20 31.7

15

INDIA INFOLINE INDIABULLS

25

KOTAK SECURITY

10 16

16

5 4.5

6.8

0

Source: Table No. 4.21 Interpretation: It can be observed from the above table & graph that 25% of the investors

would like to trade with Kotak Security, 16% would like to trade with Indiabulls, again 16% would like to go for IIFL, 4.5% would like to deal with HDFC, 6.8% would like to trade with Reliance money, while majority of investors would like to trade with Sharekhan. It means Sharekhan is doing well in the market than any other intermediaries.


93

INVESTMENT DECISION MAKING PATTERN OF INVESTORS TABLE 4.22: Table Showing the Reasons for Trading with India Infoline Ltd. SL NO.

PARTICULARS

NO. OF INVESTORS

PERCENTAGE

1

Expertise Knowledge

03

21.4%

2

Good Investment Tips

06

42.8%

3

Brokerage

02

14.3%

4

Brand Name

03

21.5%

Total

14

100%

Source: Primary data, Questionnaire. GRAPH 4.16: Graph Showing the Reasons for Trading with India Infoline Ltd.

BRAND NAME 21.50% BROKERAGE 14.30%

EXPERTISE KNOWLEDGE 21.40%

GOOD INVESTMENT TIPS 42.80%

Source: Table No. 4.22 Interpretation: We can find out from the above table & graph that out of the total investors who

trade with IIFL, 42.8% trade because of good investment tips, 21.5% trade because of expertise knowledge of advisors, 21.4% trade for brand name of company and 14.3% trade because of reasonable brokerage fees. It means India Infoline Ltd. is mainly known for its good investment tips to its customers.


94

INVESTMENT DECISION MAKING PATTERN OF INVESTORS TABLE 4.23: Table Showing Awareness of Investors about Online Trading & Buying and Selling Shares Online: SL NO.

PARTICULARS

NO. OF INVESTORS

PERCENTAGE

1

Yes

26

29.5%

2

No

62

70.5%

Total

88

100%

Source: Primary data, Questionnaire. GRAPH 4.17: Graph Showing Awareness of Investors about Online Trading & Buying and Selling Shares Online:

80 70 60 50 NO 40

YES

30

70.5

20 10 0

29.5

YES

NO

Source: Table No 4.23 Interpretation: It can be observed from the above table & graph that 29.5% of the investors

knows about online trading and also knows how to buy and sell shares online, while the majority of investors do not know how to buy and sell shares online i.e. 70.5%. It indicates less number of investors knows about online trading as it is not easy to operate.


95

INVESTMENT DECISION MAKING PATTERN OF INVESTORS TABLE 4.24: Table Showing the Sources that Can Give Better Advice of Online Trading: SL NO.

PARTICULARS

NO. OF INVESTORS

PERCENTAGE

1

Share Brokers

42

47.7%

2

Magazines

04

4.5%

3

T.V. Channels

10

11.4%

4

NEWS Papers

06

6.8%

5

Friends & Relatives

26

29.6%

Total

88

100%

Source: Primary data, Questionnaire. GRAPH 4.18: Graph Showing the Sources that Can Give Better Advice of Online Trading:

47.7

50 45 40 29.6

35

NEWS PAPERS

30

T.V. CHANNELS

25

MAGAZINES

20

SHARE BROKERS

11.4

15 10

FRIENDS&RELATIVES

4.5

6.8

5 0

Source: Table No 4.24 Interpretation: The above table shows that 47.7% of investors think share brokers are the best

advisors for online trading, 4.5% think magazines can give better advice, 11.4% think its T.V. Channels, 6.8% think news papers can provide better advice, while 29.6% think their friends & relatives can give better advice for online trading. It means more number of investors takes the opinion of share brokers before investing. PRESIDENCY BUSINESS SCHOOL

96

INVESTMENT DECISION MAKING PATTERN OF INVESTORS TABLE 4.25: Table Showing Suitable Stage for Investment According to Investors: SL NO.

PARTICULARS

NO. OF INVESTORS

PERCENTAGE

1

Young-Unmarried Stage

36

40.9%

2

Young-Married Stage

24

27.3%

3

Married with Children Stage

18

20.4%

4

Pre-Retirement Stage

10

11.4%

Total

88

100%

Source: Primary data, Questionnaire. GRAPH 4.19: Graph Showing Suitable Stage for Investment According to Investors:

45 40 35 30

PRE-RETIREMENT STAGE

25 20

MARRIED WITH CHILD STAGE 40.9

15

YOUNG-MARRIED STAGE YOUNG-UNMARRIED STAGE 27.3

10 5

20.4 11.4

0

Source: Table No 4.25 Interpretation: It can be observed from the above table & graph that 40.9% of the investors

think young-unmarried stage is the best stage of investment, 27.3% think young-married stage is good, 20.4% think married with children stage, while 11.4% said pre-retirement stage is the best stage for investment. It indicates that investors prefer to invest in their young age as they are more risk taker than any other group of investors. PRESIDENCY BUSINESS SCHOOL

97

INVESTMENT DECISION MAKING PATTERN OF INVESTORS TABLE 4.26: Table Showing How Often Investors Prefer to Trade/Invest: SL NO.

PARTICULARS

NO. OF INVESTORS

PERCENTAGE

1

Regularly

34

38.6%

2

Occasionally

26

29.5%

3

Once in a Week

10

11.4%

4

Once in a Month

18

20.5%

Total

88

100%

Source: Primary data, Questionnaire. GRAPH 4.20: Graph Showing How Often Investors Prefer to Trade/Invest:

OCCASIONALY, 29.50% ONCE IN A WEEK, 11.40%

REGULARLY, 38.60%

ONCE IN A MONTH, 20.50%

Source: Table No 4.26 Interpretation: The above table & graph shows that 38.60% of the investors invest regularly,

29.5% invest occasionally, 20.5% invest once in a month and 11.4% invest once in a week. It says that investors are following one of the golden rule of investment i.e. invest regularly.


98

INVESTMENT DECISION MAKING PATTERN OF INVESTORS TABLE 4.27: Table Showing the Risk Preference of Investors: SL NO.

PARTICULARS

NO. OF INVESTORS

PERCENTAGE

1

Low Risk-Low Return

30

34.1%

2

Moderate Risk-Moderate Return

20

22.7%

3

High Risk-High Return

38

43.2%

Total

88

100%

Source: Primary data, Questionnaire. GRAPH 4.21: Graph Showing the Risk Preference of Investors:

45 40 35 30 25 20 15

43.2

34.1

10 22.7

5 0 LOW RISK-LOW

MODERTE RISK-

HIGH RISK-HIGH

RETURN

MODERATE RETURN

RETURN

Source: Table No. 4.27 Interpretation: It can be observed from the above table that 34.1% of the investors prefer low

risk- low return (risk averse investors), 22.7% prefer moderate risk-moderate return, and 43.2% prefer high risk- high return (risk taker investors). It means investors are ready to take high risk if they get a high return because more number of investor is young in age.


99

INVESTMENT DECISION MAKING PATTERN OF INVESTORS TABLE 4.28: Table Showing No. of Investors Think Inflation as a Significant Risk: SL NO.

PERTICULARS

NO. OF INVESTORS

PERCENTAGE

1

Yes

76

86.4%

2

No

22

13.6%

Total

88

100%

Source: primary data, Questionnaire. GRAPH 4.22: Graph Showing No. of Investors Think Inflation as a Significant Risk:

90 80 70 60 50

NO

86.4

YES

40 30 20 10 13.6

0

Source: Table No. 4.28 Interpretation: The above table and graph shows that 86.4% of the investors feel inflation as a

significant risk in investment, while 13.6% do not feel inflation as a risk. It says that investors consider inflation as a major risk in their investment as well as in life.


100

INVESTMENT DECISION MAKING PATTERN OF INVESTORS TABLE 4.29: Table Showing Preference for Investment In Terms of Time Period: SL NO.

PARTICULARS

NO. OF INVESTORS

PERCENTAGE

1

Long-Term Investment

52

59.1%

2

Short-Term Investment

36

40.9%

Total

88

100%

Source: Primary data, Questionnaire. GRAPH 4.23: Graph Showing Preference for Investment In Terms of Time Period:

60

50

40 59.1

30 40.9

20

10

0 LONG-TERMI NVESTMENT

SHORT-TERMI NVESTMENT

Source: Table No. 4.29 Interpretation: It can be observed from the above table & graph that 59.1% of the investors

prefer to go for long-term investment, while 40.9% prefer short-term investment. It means more number of investors prefer to go for long term investment due to less return in short tern investment and volatility in market. PRESIDENCY BUSINESS SCHOOL

101

INVESTMENT DECISION MAKING PATTERN OF INVESTORS TABLE 4.30: Table Showing No. of Investors Heard about IIFL Intermediary Company: SL NO.

PARTICULARS

NO. OF INVESTORS

PERCENTAGE

1

Yes

78

88.6%

2

No

10

11.4%

Total

88

100%

Source: Primary data, Questionnaire. GRAPH 4.24: Graph Showing No. of Investors Heard about IIFL Intermediary Company:

90 80

70 60 50 40 30

88.6

20 10

11.4

0 YES

NO

Source: Table No. 4.30 Interpretation: The above table & graph shows that 88.6% of the investors had heard about

IIFL intermediary company, while 11.4% have not heard about IIFL at all. It says that more number of investors have heard about IIFL, it says the promotion of the company is quite good.


102

INVESTMENT DECISION MAKING PATTERN OF INVESTORS TABLE 4.31: Table Showing Factors that May Influence Investors to Deal with IIFL: SL NO.

PARTICULARS

NO. OF INVESTORS

PERCENTAGE

1

NEWS Papers

16

20.5%

2

Magazines

08

10.3%

3

T.V. Channels

22

28.2%

4

Friends & Relatives

32

41%

Total

78

100%

Source: Primary data, Questionnaire. GRAPH 4.25: Graph Showing Factors that May Influence Investors to Deal with IIFL:

FRIENDS & RELATIVES, 41% NEWS PAPERS, 20.50%

T.V. CHANNELS, 28.20%

MAGAZINES, 10.30%

Source: Table No. 4.31 Interpretation: We can observe from the above table & graph that out of the total investors

who know about IIFL, 41% may influence to deal with IIFL by their friends & relatives, 28.2% may influence by T.V. Channels, 20.5% may influence by news papers, and 10.3% may influence by magazines to deal with IIFL. It indicates that friends and relatives have greater affect on investor‟s investment decisions with IIFL.


103

INVESTMENT DECISION MAKING PATTERN OF INVESTORS TABLE 4.32: Table Showing No. of Investors Availing Services of Financial Advisors: SL NO.

PARTICULARS

NO. OF INVESTORS

PERCENTAGE

1

Yes

60

68.2%

2

No

28

31.8%

Total

88

100%

Source: Primary data, Questionnaire. GRAPH 4.26: Graph Showing No. of Investors Availing Services of Financial Advisors:

YES 68.2

31.8

31.8

NO

Source: Table No. 4.32 Interpretation: The above table & graph shows that 68.2% of the investors are using services

of financial advisors, while 31.8% are not using the services of financial advisors. It says more number of investors trust on financial advisors and using their advice in investment. It may be to reduce any uncertainty and minimize risk associated with investment.


104

INVESTMENT DECISION MAKING PATTERN OF INVESTORS TABLE 4.33: Table Showing Reasons for Availing Services of Financial Advisors: SL NO.

PARTICULARS

NO. OF INVESTORS

PERCENTAGE

1

Help with Resource Allocation

16

26.7%

2

No Time to Take Decision

22

36.7%

3

Need Explanation

06

10%

4

To be Sure about Investment

16

26.6%

Total

60

100%

Source: Primary data, Questionnaire. GRAPH 4.27: Graph Showing Reasons for Availing Services of Financial Advisors:

40 35 30 25 36.7

20 15

26.7

26.6

10 10

5 0 WANT HELP WITH RESOURCE ALLOCATION

NO TIME TO TAKE DECISION AT OWN

NEED EXPLANATION OF INVESTMENT OPTIONS

TO BE SURE ABOUT INVESTMENT

Source: Table No. 4.33 Interpretation: It can be observed from the above table & graph that out of the total investors

who are availing the services of financial advisors, 26.7% of the investors availing services of financial advisors because they want help with resource allocation, 36.7% are availing the service because they do not have time to take decision at own, 10% need explanation of investment options, and 26.6% are availing service to be sure about their investment. PRESIDENCY BUSINESS SCHOOL

105

INVESTMENT DECISION MAKING PATTERN OF INVESTORS TABLE 4.34: Table Showing Reasons for Not Availing Services of Financial Advisors: SL NO.

PARTICULARS

NO. OF INVESTORS PERCENTAGE

1

Have Access to all Resources

06

21.4%

2

Advisors are too Expensive

06

21.4%

3

How to Find a Trustworthy Advisor

04

14.3%

4

Need Own Control on Investment

12

42.9%

Total

28

100%

Source: Primary data, Questionnaire GRAPH 4.28: Graph Showing Reasons for Not Availing Services of Financial Advisors:

45 40 35 30 25 42.9

20 15 10

21.4 21.4 14.3

5 0 HAVE ACCESS TO ALL RESOURCES

ADVISORS ARE TOO EXPENSIVE

HOW TO FIND A TRUSTWORTHY ADVISOR

NEED OWN CONTROLL ON INVESTMENT

Source: Table No. 4.34 Interpretation: The above table & graph shows out of total investors who does not availing the

services of financial advisors, 21.4% are not availing advice of financial advisors because they have access to all resources to make decision, 21.4% think advisors are too expensive, 14.3% don‟t know how to find a trustworthy advisor, and 42.9% do not using advice of financial

advisors because they need own control on investment. PRESIDENCY BUSINESS SCHOOL

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INVESTMENT DECISION MAKING PATTERN OF INVESTORS TABLE 4.35: Table Showing the Satisfaction Level of Investors with IIFL’s Services : SL NO.

PARTICULARS

NO. OF INVESTORS

PERCENTAGE

1

Satisfy

06

42.8%

2

Highly Satisfy

02

14.3%

3

Average

04

28.6%

4

Dissatisfy

02

14.3%

Total

14

100%

Source: Primary data, Questionnaire. GRAPH 4.29: Graph Showing the Satisfaction Level of Investors with IIFL’s Services :

45 40 35 30 25 20

42.8

15 10 14.3

28.6

14.3

5 0 SATISFY

HIGHLYSATISFY

AVERAGE

DIS-SATISFY

Source: Table No. 4.35 Interpretation: It can be observed from the above table & graph that out of the total investors

who deal with IIFL, 42.8% are satisfied with the services of company, 14.3% are highly satisfied, 28.6% are average, while 14.3% are dissatisfied.


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SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMENDATIONS 5.1 Summary of Findings: 1) Investors take their investment decision based on their age group and stage of life-

cycle. 2) According to the age group, each investor‟s preference for investment avenues,

investment objectives are different. 3) The investors risk taking ability or risk perception is differ from other based on the age

group and the duration for investment also differ from each other, though they are living in the same geographical area or location. 4) Due to lack of advice and risk the female and undergraduates are not investing while

comparing with other category. 5) Self employment and professionals are investing more compare to service oriented

and business. 6) The age group 20-30and 31-40 is investing more compare to any other age groups. 7) Most of the investors are investing in order to ascertain the future needs and to earn

high profits. 8) Most of the investors prefer young-unmarried stage to invest; according to them this is

the best stage to start investment. 9) Most of the investors prefer to invest regularly; it may be in banks, insurance or in

equity market. 10) Most of the investors do not invest in share market, out of those who invest in share

market like to trade as investment rather than speculation or hedging. 11) Most of the investors do not aware about online trading and do not know how to buy or

sell shares online, only those investors know about online trading who trade in share market. PRESIDENCY BUSINESS SCHOOL

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INVESTMENT DECISION MAKING PATTERN OF INVESTORS 12) Majority of the investors think inflation is a significant risk associated with investment

and they would like to go for long-term investment. 13) Most of the investors aware about bank/ other deposits and insurance rather than

equity market and mutual funds. 14) Most of the investors are willing to take high risk-high return as most of the investors

are young in age. 15) Most of the investors are investing in real states and banks because the returns are

guaranteed. 16) Most of the investors are approached through the share brokers for the better advice

for their investment since brokers have practical exposure towards stock market. 17) Most of the investors are availing the services of financial advisors because they don‟t

have time to take decision; they need help with asset allocation. Those who are not availing the services said they need own control over their investment. 18) Most of the investors would like to deal with Sharekhan & Kotak security due to the

less brokerage charge. 19) Most of the investors said they trade with IIFL because of the good investment tips

provided by the broker of IIFL. 20) Most of the investors have heard about IIFL Company, though they are not trading with

the company yet. 21) Through the networking of friends and relatives most of the investors are influenced to

deal with IIFL, because of IIFL‟s post sale services. 22) Most of the investors are satisfied with the IIFL‟s services.


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INVESTMENT DECISION MAKING PATTERN OF INVESTORS 5.2 Conclusions:

It can be concluded that the modern investors are mature, highly knowledgeable and adequately groomed person. In spite of the tremendous growth in the security market and good Initial Public Offerings in the market place, the individual investors prefer investments according to their age group, objectives, risk preferences, duration, etc. For e.g. Risk averse investors choose life insurance policies, fixed and bank deposits, post office deposits, Public provident funds and national savings certificates. Nowa day‟s investors are not investing blindly, the majority of the investors are using some sources and reference group for taking investment decisions. Though sometime they are in the trap of some kind of illusions such as less research and overconfidence, they consider multiple factors and get diversified information before deciding any kind of investment. The main purpose of this study was to find out whether the age group and investment decision making patterns are independent or dependent with each other and develop some important strategy to the investment managers to help them in designing their investment schemes by considering these views of individual investors. From the research it is observed that awareness is required about the new and existence products and services available in the market, so aggressive promotional activities have to be incorporated. Appointments can be fixed with the concerned authorities of different organizations and presentation can be given by managers to put great awareness as well as impact on prospective investors. Now a day‟s financial institutions have to segment the investors based on their age group, in order to understand them better, serve them better, target them better, we need to segment the invest or‟s community into different age group and their stage of life-cycle.


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INVESTMENT DECISION MAKING PATTERN OF INVESTORS 5.3 Recommendations: 1) At the survey conducted upon 100 people, 88 are already investors in one or other way

and the remaining 12 are not interested in it. So there is huge scope for the advisors to convert those 12 participants into investors through their convincing power and great communication skills. 2) Out of the 88 investors only 38 investors are investing in share market and the remaining

50 investors are not investing in share market yet. So they should try to convince these 50 investors to invest in share market as IIFL is mostly known for equity service provider. 3) Out of the 88 investors 68.2% are already using advice of financial advisors and the

remaining 31.8% do not use. So there is a huge scope for the company to capture this untapped segment. 4) The financial institutions have to provide the awareness programs for the public in order to

know about the investment patterns. 5) The financial service providers have to concentrate on the age group of 41-50 and above

51 years, because this people will get almost retired so that they can invest. 6) In order to increase the awareness of investment options the company should not

concentrate only on equity product but also company should concentrate on various investment avenues like mutual funds, fixed deposits, insurance, bonds etc. 7) Investors of the high-income level do not know the benefits of the tax concession; hence

the company has to give the awareness about the tax exemption level. 8) The financial institutions has to give more offers and discounts like free De-mat account

opening, less brokerage, less maintenance charges etc for the investors to invest in equity market and mutual funds. 9) In order to provide excellent and quality facilities the company has to concentrate about

their work style, front line executives and organization hierarchy.


112

INVESTMENT DECISION MAKING PATTERN OF INVESTORS 5.4 Scope for Further Study:

In this current study I have concentrate to find out the significant factors which has a great impact on the individual investment decision making process only based on the age factors of investors. This study does not concentrate on the impact of both gender of investors and their age on investment pattern. So, there is a scope for further study by concentrating both age & gender of investors and the impact of these two factors together in investment decision making process. Only on the basis of age group we can not segment the investors behaviour, though they may fall in the same age group but their investment pattern is differ according to gender. There will be a good scope for researcher to find out the impact on investment decision making process of investors by combining both age group and gender 5.4.1 Learning’s:

It is said that “knowledge is power”, and learning is the first step leading to knowledge. In this endeavor, one important aspect of professional life was noticed that is, the war of Theoretical and Practical concepts. There has always been a confusion that whether practical is application of theory or theories are written after practical exposure. Through this project I got a complete insight into the Investment Service Industry and learnt about the Indian Capital Market. This project gave me an exposure in the field of Investment Pattern of Investors and the right way to utilize our money. By this project I learned how important it is to invest our savings in the right place to maximize our returns. Exposures: i) Investment patterns. ii) Investment avenues. iii) Role & responsibilities of Depository participant. iv) Concepts & Practical Exposure of financial instruments


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BIBLIOGRAPHY Books:

1. Research Methodology, R. Panneerselvam (2008), Research design and Hypothesis Testing (Chi-square Test), Sixth Edition 2008, Prentice Hall of India Pvt. Ltd. Publishers. PP. 285-298. 2. Financial Management, I.M Pandey (2010), Scope and Function of finance, Financial goals, 10th Edition 2010, Vikash Publishing House Pvt. Ltd. New-Delhi. PP. 2-7. 3. Investment Analysis and Portfolio Management, Prasanna Chandra (2008), Investment Alternatives PP. 5, Approaches to investment decision making PP. 14-15, Behavioural Finance PP. 294-302, 3rd Edition 2008, McGraw Hill Publishers- New-Delhi.

Edited Volume:

1. Rajarajan V (2000) “Investors lifestyle and investment characteristic”, Finance I ndia, VOL xiv. No 2, pp.465-478 2. Kumar, Ravinder and Abhijeet Chandra (2007). “Individual Investors Sentiments and Asset Pricing”, Synergy July-Dec. 2007 (9-2), pp 1-10. Journals:

1. Gaurav Kabra, Prashant Kumar Mishra and Manaj Kumar Dash (2010) “Factors Influencing Investment Decision of Generations in India: An Econometric Study”, Assian Journal of

Management Research, Review Article, ISSN 2229- 3795, pp. 310-323. 2. Dhiraj Jains and Nakul Dashora (2012) “ A Study On Impact of Market Movemen ts on Investment Decision, An empirical Analysis With Respect To Investors in Udaipur, Rajasthan”, Journal of Arts, Science and Commerce, Vol-iii, Issue 2(2), April, pp. 78-86.


115


3. Sultana Investors

Tabassum Behavior,

Syed

(2010)

an

Empirical

Study of

Indian

Individual

Global Journal of Finance and Management, „ISSN 0975 - 6477

Volume 2, Number 1 (2010), pp. 19-33 Reports and Gazettes:

1. Ministry of Finance, Department of Economics Affairs (capital market Department) 2012 India: DBRS Upgrades India‟s Ratings Outlooks 2011, june 24, 2011. 2. Taxation and Investment in India 2012: Investment Climate 2012, A Publication of Deloitte Touch Tohmatsu Limited. News Papers and Magazines:

1. News paper-Mint: Abhishek Goenka, chief executive of India Forex Advisors Pvt. Ltd. (2012) “The revised outlook will “affect the international lending rates for India and the cost of borrowing from overseas would get expensive”, An Exclusive interview, April 26 -2012.

2. News paper-Times of India: Pranab Mukherjee (2012) “There is no need to panic following S&P‟s move”, An Interview on April 25 -2012.

3. News paper- Times of India: “Consensus bid on retail foreign direct investment, goods and services tax: Pranab Mukherjee, May 28-2012. Websites:

1. Financial Management ( Meaning, objectives and functions), Viewed on 13/03/2012 in the management study guide website, http://managementstudyguide.com/financial-management.htm 2. Financial management, Viewed on 15/03/2012 in the website, http://www.tutor2u.net/business/accounts/finance_management_intro.htm


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3. Investment decision making approaches, Viewed on 19/03/2012 in the Narach Investment Website, http://www.narachinvestment.com/investment_decision_making.htm 4. Stock Market History, Viewed on 09/04/2012 in the website, http://www.money-zine.com/Investing/Stocks/Stock-Market-History/ 5. Company Profile, Viewed on 14/04/2012 in the India Infoline Website, http://www.indiainfoline.com/Contactus/ 6. Product And services of IIFL, Viewed on 18/04/2012 in the Company website, http://www.indiainfoline.com/ProductsAndServices/www.iiflcap.com 7. Brokerage charges in India, Viewed on 19/04/2012 in the website, http://niftyprediction.blogspot.in 8. Stock Market Trend and Investment Pattern, Viewed on 25/04/2012 in the website, http://www.scribd.com/doc/27256077/Investment-Pattern-of-Investor%E2%80%99s-inMutual-Fund-Life-Insurance-%E2%80%9CCASE-STUDY-OF-CHANDIGARH%E2%80%9D


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Questionnaire Dear Sir /Madam, I am Rijabul Islam Talukdar a student of Presidency Business School, Bangalore doing my Dissertation on “INVESTMENT DECISION MAKING PATTERN OF INVESTORS” with special reference to India Infoline Ltd., Bangalore” as a part

of my MBA (Master of Business Administration) curriculum. I would be grateful if you could spare a few minutes to complete this “INVESTMENT

DECISION

MAKING

PATTERN

OF

INVESTORS ”

Questionnaire & I assure you that information provided will be strictly used for research purpose only. Name:………………………………………………………………………………... Sex:

M

F

Mobile No:…………………………………………………………………………... Email –Id……………………………………………………………………………. 1) Qualification: a) Post Graduate

b) Graduate

c) Under Graduate

d) Others

2) Occupation: a) Service c) Self employment

b)

Business d)

others

3) Age group a) 20-30

b) 31-40

c) 41-50

d) 51&above


119

INVESTMENT DECISION MAKING PATTERN OF INVESTORS 4) Gross monthly income (in Rs.) a) Below 15,000

b) 15,001-25,000

c) 25,001-35,000

d) 35,001-45000

e) Above 45,000 5) Gross monthly savings (in Rs.) a) Less than 5000 c) 10,001-15,000

b) 5001-10,000 d) Above 15,000

6) Do you invest Your Money? a) Yes.

b) No

If NO, why?

a) Risk

b) Lack of Knowledge

c) Return Factor

d) Lack of advisors

If YES, please answer the following questions:

7) Where do you prefer to invest your money? a) Bank Deposits c) Mutual Funds e) Insurance Plans

b) Shares d) Real estate f) Bonds

8) What is your objective of investing in Shares, Bonds, IPOs, Insurance and Mutual Funds etc? a) To earn high profit c) To meet emergency


b) To meet future needs d) If any other purpose

120

INVESTMENT DECISION MAKING PATTERN OF INVESTORS 9) Do u trade in Share Market? a) YES

b) NO

If YES, how do u invest in Share Market?

a) Hedging b) Speculation c) Investment 10) Tick the investment option you are aware of: a) Fixed / other Deposits

b) Insurance

c) Equity market

d) Bonds

e)

f) Others

Mutual Fund

11) Out of following, which intermediating company would you go for trading? a) Kotak Securities

b) Indiabulls

c) India Infoline

d) HDFC

e) Reliance money

f) Sharekhan

12) If you trade with India Infoline, then why? a) Expertise Knowledge c) Brokerage

b) Investment tips are good d) Brand Name

13) Do you know online Trading and how to buy and sell shares in online? a) Yes

b) No

14) Who can give better Advise for investment in online Trading? a) Shares Brokers

b) Magazine

c) T.V. Channels

d) News Papers

e) Friends & Relations


121

INVESTMENT DECISION MAKING PATTERN OF INVESTORS 15) According to you which is the most suitable stage to invest in equity? a) Young unmarried stage

b) Young Married stage

c) Married with children stage

d) Pre-retirement stage

16) How often do you trade? a)

Regular

b) Occasionally

c)

Once in a week

d) Once in a month

17) What kind of risk are you willing to take to earn better return? a) Low risk- low steady returns with safety of principal at all times b) Moderate risk- moderate returns with commensurate fluctuations of principal c) High risk- high risk and high returns 18) Do you consider Inflation a significant risk? a) Yes

b) No

19) According to you, what are the safety levels of each of the following avenues for investment purpose? Please rate each of them on a scale of 1-5 (5-most safe, 4-safe, 3not so safe, 2-unsafe, 1-most unsafe) a) Banks

b) Post office deposits

c) Mutual funds

d) Equity investments

e) Insurance

f) Government bonds

20) Which is more preferred to invest? a) Long Term Investment


b) Short term Investment

122

INVESTMENT DECISION MAKING PATTERN OF INVESTORS 21) Have you heard about IIFL’s investment? a)

Yes

b) No

If YES, who influence you to deal with IIFL’s Investment?

a) News paper

b) Magazine

c) T.V. Channels

d) Friends & Relatives

22) Are you availing the services of personal financial advisors? a) YES

b) NO

If YES, what is the major reason for using financial advisors? a)

Want help with asset allocation

b)

Don’t have time to make my own investment decision

c)

To explain various investment options

d)

Want to make sure I am investing enough to meet my financial goals

If NO, what is the major reason for not using financial advisor? a)

Have access to all resources needed to invest on own

b)

Believe advisors are too expensive

c)

Unsure how to find a trustworthy advisor

d)

Want to be in control of own investment

23) How much you satisfied with the service provided by IIFL? a) Satisfied

b) Highly Satisfied

c) Average

d) Dissatisfied

24) You’re Opinion about the survey. ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… THANKING YOU


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Investment Decision Making Pattern of Investors...

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