Investors Preference Towards Equity in Junagadh

G.H .Patel P. G .Institute of Business Management, (Sardar Patel University) 2016-18
G. H. Patel P.G. Institute of Business Management (Sardar Patel university) 2016-18
SUMMER INTERNSHIP PROJECT REPORT
Submitted to:
Sharekhan Ltd. (Junagadh)
“A Study investor preference towards equity in Junagadh city”
Submitted by: MANSI BHIMANI
Roll no.: 16055
M.B.A (2016-18)
Student at:
G. H. PETEL P. G. INSTITUTE OF BUSINESS MANAGEMENT
VALLABH VIDHYANAGAR
(Sardar Patel University)

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PREFACE
For a management student training plays an important role during his/her study.
Training provides a corporate or real world platform to learn practically. MBA degree
without any training or corporate world experience is just like life without oxygen. So
industrial training provides a great learning experience about management concepts
and its applications. This training provides me an opportunity to know the current
market. To know the current market situations, prevailing competitions, behavioral
environment of different people etc.
.

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ACKNOWLEDGEMENT
There is a fact that none of the human being in this world is 100% perfect and in order
to gain some perfectness in itself an individual surely needs a helping hand. The same
was with me with respect to the project that I was undergoing during this session of 6
weeks. As I too was illiterate with this research topic that I selected for my research at
the initial stages, I would like to thank to all of them through this acknowledgement.
I would like to record my special thanks to Faculty and placement officer DR. K. S.
PRASAD, Head of the department DR. Y. C. JOSHI and All faculty members and
G.H. PATEL P.G. INSTITUTE OF BUSINESS MANAGEMENT and also my
parents.
I am also thankful to Ms. TANVI SAMPAT (Relationship Manager) who is presently
working with Sharekhan Limited for providing me actual training and the required
knowledge & guidance in completing this training successfully. I am also thankful to
MR JAYDEV BHATT (operation Assistant manager) and MR. HIREN MAHETA
branch manager of Sharekhan Ltd., for providing me such an opportunity.
We also acknowledge the help and encouragement I received from all the
respondents, who have favored me their valuable suggestions.

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DECLARATION
I declare that the summer project report titled “A study on Investors preference
towards Equity in Junagadh” is based on original piece of work done by me for the
fulfillment of degree of Master of Business Administration and whatever information
has been taken from any sources had been duly acknowledge.
- MANSI BHIMANI

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EXECUTIVE SUMMARY
All the investments carry risk in some risk and lower the return. The from other.
Risk, Liquidity and return are called factor which are considered before making an
investment. But there is a tradeoff between risk and return. Higher the risk and higher
the return. Lower the decision of which mode of investment to choose largely depends
upon the investor’s necessity and the factors which according to him is the most vital
one.
People with more security concern choose fixed investment and investments in
government securities and various post office savings. The main reason for choosing
seems to very secure and hence they seemed to be more preferred one where security
is the prime concern.
This Project is undertaking at “Share Khan”. As a part of the MBA program. Share
Khan is mainly involved in the brokerage business. The company offers various
services to their clients like trading in BSE and NSE. The company also provides
Mutual Fund services, investment banking, corporate Advisory services and
distribution of financial products. Share Khan also provides online trading for their
clients and off line trading also. Share Khan also provides two types of the services in

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online trading. Company provides trading through its website
( www.sharekhan.com).
As a part of research I studied the “INVESTORS PREFERENCE TOWARDS
EQUITY IN JUNAGADH CITY”.
In the research work first, I decided my criteria for the research work through the
questionnaire. I collected primary data and secondary data was collected by using
various websites and journal.

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TABLE OF CONTANT
SR
NO
PARTICULAR PAGE
NO.
1
2
3
4
5
6
7
8
9
10
About company
Stock market in India
About major company in industry
Types of products
Introduction of study
Research Methodology
Data collection Analyses and interpretation
Results and Findings
Conclusion
Bibliography
7-10
11-23
24
25-27
28-32
33-37
38-49
50
51
52

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ABOUT COMPANY

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PROFILE OF THE COMPANY
Name of the company: Sharekhan ltd. Year of Establishment: 1925 Headquarter :
Sharekhan SSKI A-206 Phoenix House Phoenix Mills Compound Lower Parle
Mumbai - Maharashtra, INDIA- 400013 Nature of Business : Service Provider
Services : Depository Services, Online Services and Technical Research. Number of
Employees: Over 3500 Revenue: Data Not Available Website: www.sharekhan.com
Slogan: “Your Guide to The Financial Jungle”.
Vision:
To be the best retail brokering Brand in the retail business of stock market.
Mission:
To educate and empower the individual investor to make better investment decisions
through quality advice and superior service.

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SHAREKHAN LIMITED is one of the leading retail stock broking house of SSKI
Group which is running successfully since 1922 in the country. It is the retail broking
arm of the Mumbai-based SSKI Group, which has over eight decades of experience in
the stockbroking business. Sharekhan offers its customers a wide range of equity
related services including trade execution on BSE, NSE, Derivatives, depository
services, online trading, investment advice etc. The firm’s online trading and
investment site - www.sharekhan.com - was launched on Feb 8, 2000. The site gives
access to superior content and transaction facility to retail customers across the
country. Known for its jargon-free, investor friendly language and high quality
research, the site has a registered base of over one lakh customers. The content-rich
and research oriented portal has stood out among its contemporaries because of its
steadfast dedication to offering customers best-of-breed technology and superior
market information. The objective has been to let customers make informed decisions
and to simplify the process of investing in stocks. On April 17, 2002 Sharekhan
launched Speed Trade, a net-based executable application that emulates the broker
terminals along with host of other information relevant to the Day Traders. This was
for the first time that a net-based trading station of this caliber was offered to the
traders. In the last six months Speed Trade has become add factor standard for the
Day Trading community over the net. Share khan’s ground network includes over
1288 centers in 325 cities in India which provide a host of trading related services.
Sharekhan has always believed in investing in technology to build its business. The

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company has used some of the best-known names in the IT industry, like Sun
Microsystems, Oracle, Microsoft, Cambridge Technologies, Nexgenix Vignette,
VeriSign Financial Technologies India Ltd, Spider Software Pvt., Ltd to build its
trading 28 engines and content. The Morakhiya family holds a majority stake in the
company. HSBC. Intel & Carlyle are the other investors. With a legacy of more than
80 years in the stock markets, the SSKI group ventured into institutional broking and
corporate finance 18 years ago. Presently SSKI is one of the leading players in
institutional broking and corporate finance activities. SSKI holds a sizeable portion of
the market in each of these segments. SSKI’s institutional broking arm accounts for
7% of the market for Foreign Institutional portfolio investment and 5%of all Domestic
Institutional portfolio investment in the country. It has 60 institutional clients spread
over India, Far East, UK and US. Foreign Institutional Investors generate about 65%
of the organization’s revenue, with a daily turnover of over US$ 2 million. The
Corporate Finance section has a list of very prestigious clients and has many ‘firsts ’to
its credit, in terms of the size of deal, sector tapped etc. The group has placed over
US$ 1 billion in private equity deals. Some of the clients include BPL Cellular
Holding, Gujarat Pipavav, Assar, Hutchison, Planet Asia, and Shopper’s Stop. 29.

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STOCK MARKETS IN INDIA
“Stock exchange means anybody or individuals whether incorporated or not,
constituted for the purpose of assisting, regulating or controlling the business of
buying, selling or dealing in securities.” The securities include: Shares of public
company, Government Securities bonds.
Stock exchanges are the perfect type of market for securities whether of government
and semi-govt., bodies or other public bodies as also for shares and debentures issued
by the joint-stock companies. In the stock market, purchases and sales of shares are
affected in conditions of free competition. Government securities are traded outside
the trading ring in the form of over the counter sales or purchase. The bargains that
are struck in the trading ring by the members of the stock exchanges are at the fairest
prices determined by the basic laws of supply and demand.
.

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History of Stock Exchanges:
The only stock exchanges operating in the 19th century were those of Mumbai setup
in 1875 and Ahmadabad set up in 1894. These were organized as voluntary nonprofit-
marking associations of brokers to regulate and protect their interests. Before the
control on securities under the constitution in 1950, it was a state subject and the
Bombay securities contracts (control) act of 1925 used to regulate trading in
securities. Under this act, the Mumbai stock exchange was recognized in 1927 and
Ahmadabad in 1937. During the war boom, a number of stock exchanges were
organized. Soon after it became a central subject, central legislation was proposed and
a committee headed by A.D.Gorwala went into the bill for securities regulation. On
the basis of the committee’s recommendations and public discussion, the securities
contract (regulation) act became law in 1956.

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Functions of Stock Exchanges:
Stock exchanges provide liquidity to the listed companies. By giving quotations to
the listed companies, they help trading and raise funds from the market. Over the
hundred and twenty years during which the stock exchanges have existed in this
country and through their medium, the central and state government have raised
crores of rupees by floating public loans. Municipal corporations, trust and local
bodies have obtained from the public their financial requirements, and industry, trade
and commerce- the backbone of the country’s economy-have secured capital of crores
or rupees through the issue of stocks, shares and debentures for financing their day-to-
day activities, organizing new ventures and completing projects of expansion,
diversification and modernization. By obtaining the listing and trading facilities,
public investment is increased and companies were able to raise more funds. The
quoted companies with wide public interest have enjoyed some benefits and assets
valuation has become easier for tax and other purposes.

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ONLINE TRADING INDUSTRY – INDIA:
With an online trading account, you can buy and sell shares in an instant! Anytime
you like and from anywhere you like. You can choose the online trading account that
suits your trading habits and preference. In online trading the orders are sent to the
exchanges, the confirmation is immediately conveyed through E-mail and the
proceeds or shares are credited (or debited) to the bank and demat accounts. Globally,
trade every seconds trade that goes through in the stock market is an online trade. We
in India have a long way to go but we sure are catching up a good speed. Companies
offer a fast online share dealing service using real time quotes, free up to the minute
advice, information and tips. Trades may be both in NSE & BSE. Some online
companies offer investment in mutual funds and IPO‟s online. The Indian problem:
Some other structural aspects need to be kept in mind while analyzing the e-broking
scenario in India. The breadth of participation in the stock market in India is
significantly lower as compared to western markets with only 12.1 million equity
owning households and three million depository accounts. Brokerage rates in India
are significantly lower than US rates, with Indian brokers charging commissions of
0.5% to 1.25% per trade. For any player, the pricing strategy for e-broking for the
retail segment is as follows: For the cash segment, the brokerage charged varies from
0.4% to 0.85% based on the volume of trade done per quarter while for the margin
segment; the brokerage charged varies from 0.05% to 0.15% based on the volume of
trade done per quarter. The above charges are inclusive of depository charges and all
the other statutory charges.

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VARIOUS STOCK EXCHANGES IN INDIA
Bombay Stock Exchange of India (BSE) National Stock Exchange of India (NSE)
Indian Commodity Exchange (ICEX) United Stock Exchange of India (USE) Multi
Commodity Exchange (MCX) Over the Counter Exchange of India (OTCEI) Inter-
connected Stock Exchange of India (ISE) Madras Stock Exchange (MSE) Coimbatore
Stock Exchange (CSX) Ahmedabad Stock Exchange (ASE) Bhubaneshwar Stock
Exchange (BhSE) Cochin Stock Exchange (CSE) Hyderabad Stock Exchange (HSE)
Calcutta Stock Exchange (CSE) Delhi Stock Exchange (DSE) Bangalore Stock
Exchange (BgSE) Madhya Pradesh Stock Exchange, Indore Jaipur Stock Exchange
(JSE), Patna UP Stock Exchange (UPSE) Vadodara Stock Exchange, Vadodara (VSE)
Guwahati Stock Exchange Ltd Ludhiana Stock Exchange Association Ltd Kanara
Stock Exchange Ltd Mangalore Stock Exchange Ltd, 21. Pune Stock Exchange Ltd
Saurashtra Kutch Stock Exchange Ltd Meerut Stock Exchange Ltd Intrex Trade
Exchange Ltd United Stock Exchange of India Mahurat trading.

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NSE (National Stoke exchange)
NSE was set-up with the main objectives of: Establishing a nation-wide trading
facility for equities and debt instruments. Ensuring equal access to investors all over
the country through an appropriate communication network providing a fair, Efficient
and transparent securities market to investors using electronic trading systems.
Enabling shorter settlement cycles and book entry settlements systems and Meeting
the current international standards of securities markets. The standards set by NSE in
terms of market practices and technology, have become industry benchmarks and are
being emulated by other market participants. NSE is more than a mere market
facilitator. It's that force which is guiding the industry towards new horizons and
greater opportunities.

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BSE (Bombay stock exchange)
Bombay stock exchanges limited is the oldest stock exchange in Asia with a rich
heritage. Popularly known as “The native share and shareholders association” in
1875. It is the first stock exchange in the country to obtain permanent recognition in
1956 from the government of India under securities contracts (regulation) act, 1956.
The exchanges pivotal and pre-eminent role in the development of the Indian capital
market is widely recognized and its index, SENSEX, is tracked worldwide. Earlier an
Association of persons (AOP), the exchanges is now a de- mutualized and corporative
entity incorporated under the provisions of the companies act, 1956, pursuant to the
BSE (Corporation and Demutualization) scheme, 2005. Notified by the Securities and
Exchange Board of India with demutualization, the trading rights and ownership
rights have been de-linked effectively addressing concerns regarding perceived and
real conflicts of interest. The exchange is professionally managed under the overall
direction of the board of directors. The board comprises eminent professionals,
representatives of trading members and the Managing directors of the exchange. The
board is inclusive and is designed to before from the participation of market
intermediaries. In terms of organization structure, the board formulates larger policy
issues and exercises overall control. The committees constituted by the board are
broad based. The day to day operations of the exchange are managed by the managing
director and a management team of professionals. The exchange has a nationwide
reach with a presence in 417 cities and towns of India. The systems and processes of

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the exchange are designed to safeguard market integrity and enhance transparency in
operations. During the year 2004-05, the trading volumes on the exchange showed
robust growth. The exchange provides an efficient and transparent market for trading
in equity, debt instruments and derivatives. The BSE‟s Online Trading System
(BOLT) is a proprietary system of the clearing and settlement functions of the
exchange are ISO 9001:2000 certified.

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SEBI (Securities and Exchange Board of India)
In 1998, the SEBI was established by the Government of India through an executive
resolution, and was subsequently upgraded as a fully autonomous body (a statutory
board) in the year 1992 with the passing of the SEBI act on 30th Jan 1992. In place of
Government control statutory and autonomous regulatory boards with defined
responsibilities, to cover both development and regulation of the market, and
independent powers have been set up. Paradoxically this is a positive outcome of the
securities scam of 1990-91. The basic objectives of the board were identified as: To
promote the interests of investors in securities. To promote development of securities
market. To regulate the securities market and for matters connected there with or
incidental there to. Since its inception SEBI has been working targeting the securities
and is attending to the fulfillment of its objectives with commendable zeal and
dexterity. The improvements in the securities markets like capitalizations
requirements, margining, establishments of clearing corporation etc. reduced the risk
of credit and also reduced the market. SEBI has introduced the comprehensive
regulatory measures prescribed norms, the eligibility criteria, the code of obligations
and the code of conduct for different intermediaries like, bankers to issue, merchant
bankers, brokers and sub-brokers, registrars, portfolio managers, credit rating
agencies, underwriters and others. It has framed by-laws, risk identification and risk
management systems for clearing houses of stock exchanges, surveillance system etc.
which has made dealing in securities both safe And transparent to the end investors.

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Another significant event is the approval of trading in stock indices (like S&P CNX
Nifty and Sensex) in 2000. A market index is a convenient and effective product
because of the following reasons: It acts as a barometer for market behavior. It is used
to benchmark portfolio performance. It is used in derivative instrument like index
futures and index options. It can be used for passive fund management as in case if
index funds. Two board approaches of SEBI is to integrate the securities market at the
national level, and also to diversify the trading products, so that there is an increase in
number of traders including banks, financial institutions, insurance companies, mutual
funds, primary dealers etc. to transact through the exchanges. In this context the
introduction of derivatives trading through Indian stock exchanges permitted by SEBI
in 2000 AD is a real landmark. SEBI appointed the L.C. Gupta Committee in 1998 to
recommend the regulatory frameworks for derivatives trading and suggest by-laws for
regulation and control of trading and settlement of derivatives contracts. The board of
SEBI in its meeting held on May 11, 1198 accepted the recommendations of the
committee and approved the phased introduction of derivatives trading in India
beginning with stock index futures. The board also approved the “Suggestive by-
laws” as recommended by the Dr. L.C. Gupta Committee for regulation and control of
trading and settlement of derivatives contracts. SEBI then appointed the J. R. Verma
Committee to recommend Risk Containment Measures (RCM) in the Indian stock
index futures market. The report was submitted in November 1998. However the
Securities Contracts (Regulation) act, 1956 (SCRA) required amendment to include
“derivatives” in the definitions of securities to enable SEBI to introduce trading in
derivatives. The necessary amendment was then carried out by the Government in

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1999. The Securities law (Amendment) bill, 1999 was introduced. In December 1999
the new framework was approved. Derivatives have been accorded the status of
“Securities”. The ban imposed on trading in derivatives in 1969 under a notification
issued by the central government was revoked. Thereafter SEBI formulated the
necessary regulations and intimated the stock exchanges in the year 2000. The
derivatives trading started in India at NSE in 2000 and BSE started trading in the year
2001.

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PRIMARY MARKET:
Primary market the primary is that part of the capital markets that deals with the
issuance of new securities. Companies, governments or public sector institutions can
obtain funding through the sale of a new stock or bond issue. This is typically done
through a syndicate of securities dealers. The process of selling new issues to
investors is called underwriting. In the case of a new stock issue, this sale is an initial
public offering (IPO). Dealers earn a commission that is built into the price of the
security offering, though it can be found in the prospectus. This is the market for new
long term capital. The primary market is the market where the securities are sold for
the first time. Therefore it is also called New Issue Market (NIM). Primary issues are
used by companies for the purpose of setting up new business or for expanding or
modernizing the existing business.
SECONDARY MARKET:
Secondary market the secondary market is the financial market for trading of
securities that have already been issued in an initial private or public offering.
Alternatively, secondary market can refer to the market for any kind of used goods.
The market that exists in a new security just after the new issue is often referred to as
the aftermarket. Once a newly issued stock is listed on a stock exchange, investors

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and speculators can easily trade on the exchange, as market makers provide bids and
offers in the new stock.
IPO:
Initial Public Offering, is the sale of shares by a company to the public for the first
time. Colloquially, it is said that a company is 'going public.' How is then that
company like ONGC and GAIL which are already listed are going for an 'IPO' again?
The government is the majority stockholder in these companies and it is offering a
percentage of its stock now to the public. So strictly speaking, public sector
companies that are already listed are not having their 'IPO' but they are going for a
'public offering' of their shares. It's a technical distinction and one that should not
bother individual investors. To apply to an IPO you have to fill an IPO application
form.

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ABOUT MAJOR COMPANIES IN INDUSTRY:
There are many companies in industry like Kotak securities, Indiabulls, icici
direct.com, motilal oswal, reliance money, hdfc securities, indiainfoline, Bajaj capital,
religare, Karvy etc.
PRODUCTS AND SERVICES PROVIDED BY COMPANY
1. Equity and Derivative Trading on BSE and NSE
2. Depository Services.
3. Online Trading.
4. IPO Services.
5. Portfolio Management Services.
6. Mutual funds

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TYPES OF PRODUCTS
Classic Account:
Is basically used for beginners i.e. Fresher.
Here the transactions can be done in BSE, NSE and F&O. There can be a market
watch. Here we can make four templates i.e. folders.
You can add 20 scrip’s in each template. Here you can add minimum 20 scrip and
maximum 100 scrip.
Top gainers, Top losers, Top traded equities and Top traded funds are the special links
available in this.
It gives maximum access. You can keep lump sum amount in the account.
There is a link which is- what’s in, what’s out. A system required is Windows XP,
2000, IE 6.0.

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Fast trade Account:
You can also buy Mutual funds and IPO online.
You can also monitor circuits. You can see the market depth i.e. the logic of demand
and supply. It will help to decide whether to buy or not.
It can also add trigger as in it works as a reminder. This online trading platform is an
applet- based application that provides quotes from BSE and NSE.
Get live market prices and market statistics like best bid price, quantity, best offer
price and quantity etc. for chosen stocks.
Trade Tiger
Trade Tiger is an application that brings you the power of a broker’s terminal, right
from your desktop.
Trade on multiple exchanges {NSE, BSE, MCX, NCDEX} from a single screen.
Customize market watches by scripts or sectors and view them on a single screen. Get
access to technical tools and trade like a pro.
Invest Tiger
This account allows you to trade through website and is suitable for retail investors.

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Online trading website also comes with a Dial-n-Trade service that enables to buy
and sell shares by calling dedicated toll-free number 1-800-22-7050.

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INTRODUCTON
OF
STUDY

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In India the household savings rate is increasing and almost fifty percent of the
savings are in physical assets like gold, real estate and the rest fifty percent is in
financial assets. In India the private equity has grown substantially. The value of
private equity investments in the country grew more than 20 times in less than a
decade. The performance of Market has registered a significant upward trend in recent
times. Retail investors’, who are investing in small stocks to make a quick gain, are
changing their approach and now placing their money in quality stocks.
It is always interesting to know the most common avenues in which people like to
invest. In Junagadh also I tried to find out which is the most popular mode of
investment.
The investors also differ in risk taking ability. The objective is to find out in Junagadh
investors are having aggressive approach or conservative approach.
An Aggressive investor values maximizing returns and is willing to accept substantial
risk. This investor believes maximizing long-term returns is more important than
protecting principal. An Aggressive investor may endure extensive volatility and
significant losses. Liquidity is generally not a concern to an Aggressive investor.

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A Conservative investor values protecting principal over seeking appreciation. This
investor is comfortable accepting lower returns for a higher degree of liquidity and/or
stability. Typically, a Conservative investor primarily seeks to minimize risk and loss
of principal.
LiteratureReview
Ramachandran & Chinnathambi (2011) mention small investors in equity shares in
India grope in the dark, as neither have they possessed the sophisticated knowledge to
take a decision nor they understand the investment guidance and advice given by the
scholars and publications, based on the technical analysis of investment. They are
guided by gut feeling more often pointed out by Ramachandran & Chinnathambi
(2011), For Indian investors; the main objective is the rate of return and reduction in
the risk. A wide variety of investment avenues are open to the investors to suit their
need and nature. At present, a wide variety of investment avenues are open to the
investors to suit their needs and nature. The study found that the most important
attribute for investment consideration is return. The other important criteria for
investment are liquidity.

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Koti (2014), found that with over 20 million shareholders, India has the third largest
investor base in the world after the USA and Japan. Over 9,000 companies are listed
on the stock exchanges, which are serviced by approximately 7,500 stockbrokers.
PROBLEM STATEMENT OF STUDY
The study investigates the kind of investment is preferred in Junagadh, the level of
risk People can undertake and their perception towards equity investment.

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OBJECTIVE OF STUDY:
PTIMARY OBJECTIVE:
To find out which age groups of investors are actively participating in the stock
market, people’s perception and preference towards equity market in Junagadh.
SECONDARY OBJECTIVE:
To find out the most preferred avenues for investment in Junagadh.

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LIMITATION OF STUDY:
I have tried my best to make this project as transparent as possible but there exist
some uncontrollable limitation which also exists in our report which are as follows:
Firstly the main limitation of the research was generated from the small size of the
sample. Under time and financial constraints, the study was performed only with a
small portion of the population from the whole population. This may get the incorrect
results.
Respondents might have felt hesitation in providing information related to their age,
income etc. So, there can be some data that might questionable because of
unwillingness of respondents to give right information..

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RESEARCH
METHODOLOGY

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RESEARCH DESIGN:
A research design is a master plan or a model to conduct a formal investigation and
survey. It is a specification not method and procedures for acquiring the information
needs for solving the problem. It decides the sources of information and methods for
gathering data. A descriptive design is to be selected.
A good research design ensures that the information obtained is relevant to the
research question and that it was collected by objectives. Since research design
simplifies the study, it should be used as guide in collecting and analyzing data.
.

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SOURCES OF DATA
Primary data:
The data which is collected from the respondents to the base of knowledge and belief
of the research are called primary data.
So far as my research is concerned, primary data is the main source of information. I
have collected data through structured Questionnaire.
Secondary data:
The Secondary data are collected from different websites, journals and magazines.

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DATA COLLECTION METHOD:
The research is conducted with the help of questionnaire therefore the main source of
information is the response of the respondents and fill up the structured questionnaire.
This can be considered as a primary method of collecting the data.
POPULATION:
100 respondents selected from Junagadh city for this research.
SAMPLING METHOD:
Sampling techniques can be broadly classified as non-probability sampling and
probability sampling. Here, convenience sampling method of non-probability
sampling techniques will be used.
Convenience sampling (also known as availability sampling) is a specific type of non-
probability sampling method that relies on data collection from population members
who are conveniently available to participate in study. Facebook polls or questions
can be mentioned as a popular example for convenience sampling.

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SAMPLING FRAME:
One Hundred respondents were contacted from Junagadh city that provided the details
through the questionnaire.
DATA COLLECTION INSTRUMENT:
A Structured questionnaire was designed to collect the response of people towards
investment and particularly in equity.

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DATA COLLECTION,
ANALYSES
AND
INTREPRETATION

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Q 1 Are you aware about equity investment?
YES/NO Total no of people %
Yes 98 98
No 2 2
Interpretation:
There were almost all respondents are well aware about equity investment except
2%of total respondent

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Q 2 Which kinds of investment do you preferred most?
Analysis:
KIND OF
INVESTMENT
TOTAL PERCENTAGE
Mutual fund 14 5.85
Gold 51 21.34
Equity market 67 28.03
Real estate 32 13.39
Debt market 15 6.28
Insurance 30 12.55
Fixed deposit 30 12.55
total 239 100
Interpretation:
The most preferred mode of investment in Junagadh is investment in Equity shares.
Though the real market prices are soaring high and the gold is becoming costly day by
day, many banks have increased their fixed deposit rate but from the above data it can
be concluded that in order to get higher returns people still prefer to invest in the
equity market.

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Q 3 Which aspects do you preferred most for your investment
decision?
Particular Risk
aspect
Profit
aspect
div.
aspect
Regular
income
safety other
No of
people
9 41 15 14 18 3
Interpretation:
Respondents are ready to take risk as their investment decisions are mainly guided by
the profit aspect and dividend aspect. The respondents are interested in regular
income and that is why they invest in different schemes of mutual funds and debt
market. Mainly respondents are risk takers in Junagadh.

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Q 4 How many amounts do you invest in year?
Total investment Total %
<100000 25 24.75
100000-1000000 53 52.48
>10,00,000
Total
23
101
22.77
100
Interpretation:
From the data collected it can be interpreted that there is a large percentage of people
who invest between 1 lakh and 10 lakhs as compared to those who invest more than
10 lakhs and less than 1 lakh. This shows that people with less income do not tend to
invest their money while the upper middle class and upper class that have high level
of earning tend to invest more. There are small investors who would like to make
quick gains.

44 | P a g e
Q 5 How many amt., do you invest in equity market?
% of investment in
equity market
Total %
<25 55 55
25-50 29 29
50-75 13 13
>75 3 3
Total 100 100
Interpretation:
As equity is subjected to market risk, it can be seen from the above data that people
do invest in equity market but they have variety of investment. They do not have all
equity investment. These could de due to various reasons including the fluctuation,
government policy and high level of speculation. However there are very few
respondents who do invest more than 75% of their investment in Equity market.

45 | P a g e
Q 6 Do you invest in primary market through IPO?
Primary market Total %
Yes 76 76
no 24 24
Interpretation:
It can be seen that there is huge number of people investing in the primary market as
it has a larger scope for the success in the market and also the price of the shares are
relatively low when they are issued for the first time as compared to when it is ready
for trading in the secondary market. Investors buy through IPOSs and sell them in the
open market at a higher rate and thus believe in quick money.

46 | P a g e
Q 7 In which sector do you prefer most in equity Investment?
Sector Total %
IT 14 6.86
Pharmacy 18 8.82
Banking 58 28.43
Petroleum 32 24.01
Real estate 49 15.68
Metals and mining 28 13.72
Others 5 2.45
Interpretation:
It can be concluded from the following data that people tend to invest more in the
banking sector; the reason behind this may be because it is regulated by the RBI and
the health of the economy is closely related to the soundness of its banking system.
Hence it is less subject to the market risk and induces people to invest in it. While
there is also a good proportion of people who do invest in the real estate sector and
the petroleum sector mainly because there is high level of speculation in these sectors.
Investors are risk takers and want to invest in companies which are giving returns in a
short period.

47 | P a g e
Q 8 How long you ready to hold your shares?
trading Total %
<1 year 20 20
1-3 years 24 24
3-5 years 41 41
>5 years 15 15
total 100 100
Interpretation:
From the above data it can be concluded that 41 % of people investing in the equity
market are willing to trade for more than 3 years that is they would hold the share for
more than three years, which implies that they are more interested in long term gains
as compared to those who want to trade for less than a year.

48 | P a g e
Age:
Age group Total %
20-30 30 30
30-40 34 34
40-50 22 22
50 and above 15 15
Total 100 100
Interpretation:
From the above chart 30 belonged to the youngest age group, 34 were from 30 to
40 age category it can be interpreted that there are large no. of individuals investing
in the equity market, which are between the age of 20 and 40, and after 40 there is a
slight decline in the percentage of people investing in the equity market.

49 | P a g e
Occupation:
occupation %
Student 10
Business 25
Service 35
Professional 10
Retired 15
other 5
Interpretation:
Major investors in share market are either business man or doing job in service
sector, where there are fewer others mentioned. professionals, students and retired are
investing in share market as compare to others mentioned.

50 | P a g e
RESULTS AND FINDINGS:
1. It has been found from the data that equity is the preferable area of investment with
a proportion of 28% and followed by gold with a proportion of 22%
2. It has been comprehended from the data analysis that investment in equity market
by the individuals is mostly between the range of 1, 00,000 and 10, 00,000.
3. It can be concluded that from among 100 people surveyed , around 76 % of people
prefer to invest in primary market.
4. Although the stock market is highly volatile, people still prefer to invest in sectors
such as petroleum and real estate while the investment in banking sector remains the
highest 28 %, followed by real estate sector with 24 % and petroleum sector with 16
%.
6. Another fruitful finding from the survey is that the small investors are mostly
willing to trade for less than 3 years as they are more interested in the short term
gains.

51 | P a g e
CONCLUSION:
After the survey, it is found that people in Junagadh risk and their investment
decisions are guided by the profit motive.
Investors are investing in various avenues but the most preferred is equity and the
respondents consider banking sector as the most preferable sector for investment.
The amount of investment is associated with the kind of investment and type of
transaction.

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BIBLIOGRAPHY
1. Koti, K. (2014). Investors Preference towards Stock Market and Other Investment
Options. IJRMBSS, 2(1).
2. Ramachandran, P. S., & Chinnathambi. (2011). Investment Behavior and Risk
Return Perception of Investors in Equity Shares. Contemporary Research Issues and
Challenges in Emerging Economies, 80-95.
3. www.sharekhan.in
4. www.nse.in
5. www.bse.in
6. www.wekipidea.com

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Investors Preference Towards Equity in Junagadh

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