A

SUMMER INTERNSHIP PROJECT REPORT

On

"ANALYSIS OF KARVY STOCK BROKING LTD"

Submitted in partial fulfilment of the requirements of degree of

master of business administration

Submitted to: - Submitted by:-

Mr. Ruben shah Rishabh Mandot

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 DECLARATION
I Rishabh Mandot student of Mandsaur University, Mandsaur I hereby declare that this project
is carried out by me during the academic year 2018-19 entitled " investor's behavior towards
investing in equity market “, submitted by me to the Mandsaur University, in partial fulfillment
of the requirement for the award of degree of Master of business administration under the
guidance of Prof. Ruben shah.

Place- Mandsaur Rishabh Mandot

Date: - MBA III| SEM

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 ACKNOWLEDGEMENT

It was great opportunity for me to work for Karvy, pioneers in the field of stock market Industry.
I am extremely grateful to all those who have shared their expertise and knowledge with me and
without whom the completion of this project would have been virtually impossible.

I am extremely please to express my gratitude to Mr. Avin Mehta (Deputy Manager, Karvy
Udaipur) and Prof. Ruben Shah for allowing me to undertake Major Research Project as such
estimate organization.

I am also thankful to all the management team, relationship managers of (Karvy, Udaipur) for
their valuable guidance and help during the training.

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 EXECUTIVE SUMMARY

The Summer Implant Project at “ANALYSIS OF KARVY STOCK BROKING LTD.”

has given an exposure into the investment scenario in India. The project includes advisory
services i.e. educating the existing and potential investors about stock market as an alternative
source to investment. This involves catering to the queries of the investors about the concept of
stock market, the various options that an investor can invest his money into, funds management
of investors.

Analyzing the investors behaviour includes understanding the concerns a person has towards
Stock Market, his stages in life and wealth cycle, the effect of the investments made by the peer
groups, effect of the profession he/she is in, education qualification, investment scope, the most
preferred saving tool etc. And this all is analyzed with the help of a schedule prepared.
Understanding the significance of cash equity market, types of instruments present in the Indian
Stock Market such as Futures, Options and Forwards. The various techniques used to identify the
trend of the market and analyzing the scrip before investing.

During the training it was a unique experience for me it enhanced my knowledge, improved my
communication skills by interacting with various persons and clients, I achieved a better
knowledge about stock market. The experience which I gained by doing this project was
essential at this turning point of my career this project is being submitted which content detailed
of the research under taken by me.

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 TABLE OF CONTENT

CHAPTER-1
INTRODUCTION OF INDIAN STOCK MARKET

CHAPTER-2
ORGANISATION PROFILE-

CHAPTER-3
THEORETICAL FRAMEWORK

CHAPTER-4
RESEARCH METHODOLOGY

CHAPTER-5
DATA ANALYSIS AND INTERPRETATION

CHAPTER-6
SUGGESTION AND CONCLUSION

Bibliography
Annexure- Questionnaire

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 Introduction

INDIAN STOCK MARKET

A stock market is a place in which long term capital is raised by industry and commerce, the
government and local authorities and it is regarded as capital market. The money derives from
private investors, insurance companies, pension funds and banks and is usually arranged by
issuing houses and merchant banks. Stock exchanges are also part of the capital market which
provides a market for the shares and loan that represent the capital once it has been raised. Stock
market is a place where the securities can be sold and purchased at an agreed price. Indian stock
market is the oldest stock market incorporated in 1875. The name of the first share trading
association in India was Native Share and Stock Broker Association which later came to be
known as Bombay Stock Exchange.

SEBI is the regulatory authority of Indian stock market. The main functions of SEBI are to
provide protection to investors and safeguard their rights, to regulate brokers and sub brokers, to
prohibit the unfair practices in stock market etc.

The most decisive period in the history of the BSE took place after 1992. In the aftermath of a
major scandal with market manipulation involving a BSE member named Harshad Mehta, BSE
responded to calls for reform with intransigence. The foot-dragging by the BSE helped radicalize
the position of the government, which encouraged the creation of the National Stock Exchange
(NSE), which created an electronic marketplace. NSE started trading on 4 November 1994.
Within less than a year, NSE turnover exceeded the BSE. BSE rapidly automated, but it never
caught up with NSE spot market turnover. The second strategic failure at BSE came in the
following two years. NSE embarked on the launch of equity derivatives trading. BSE responded
by political effort, with a friendly SEBI chairman (D. R. Mehta) aimed at blocking equity
derivatives trading. The BSE and D. R. Mehta succeeded in delaying the onset of equity
derivatives trading by roughly five years. But this trading, and the accompanying shift of the spot
market to rolling settlement, did come along in 2000 and 2001 - helped by another major scandal
at BSE involving the then President Mr. Anand Rathi. NSE scored nearly 100% market share in

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the runaway success of equity derivatives trading, thus consigning BSE into clearly second
place.

FUCTIONS OF STOCK MARKET:

1. Continuous and ready market for securitiesk

2. Facilitates evaluation of securities

3. Encourages capital formation

4. Provides safety and security in dealings

5. Regulates company management

6. Facilitates public borrowing

7. Provides clearing house facility

8. Facilitates healthy speculation

9. Serves as Economic Barometer

10. Facilitates Bank Lending

1.4- Stock Exchange:-

Stock Exchanges are an organized marketplace, either corporation or mutual organization, where
members of the organization gather to trade company stocks or other securities. The members
may act either as agents for their customers, or as principals for their own accounts. Stock
exchanges also facilitates for the issue and redemption of securities and other financial
instruments including the payment of income and dividends. The record keeping is central but
trade is linked to such physical place because modern markets are computerized. The trade on an
exchange is only by members and stock broker do have a seat on the exchange.

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The two major stock exchanges in India are:

1. National Stock Exchange (NSE):-

The National Stock Exchange (NSE) is a stock exchange located at Mumbai, Maharashtra,
India. It is the 11th largest stock exchange in the world by market capitalization and largest in
India by daily turnover and number of trades, for both equities and derivative trading.

NSE has a market capitalization of around US$ 1 trillion and over 1652 listings as of July 2013.
Though a number of other exchanges exist, The NSE's key index is the S&P CNX Nifty, known
as the NSE NIFTY (National Stock Exchange Fifty), an index of 50 major stocks weighted by
market capitalization.

NSE is the third largest Stock Exchange in the world in terms of the number of trades in equities.
It is the second fastest growing stock exchange in the world with a recorded growth of 22.67%.

Some facts to be remembered:-

• NSE registered 11.2 crore trades on its platform, making it the worlds top exchange among the
50 bourses listed with WFE (World Federation of Exchanges).
• NSE witnessed a fall of 9.7 Percent in its equity trade in June 2013.
• NSE was also ranked first in the number of equity trades for the first half of 2013 with

2. Bombay Stock Exchange (BSE):-

The Bombay Stock Exchange (BSE) is a stock exchange located on Dalal Street, MuPGDMi
and is the oldest stock exchange in Asia. The equity market capitalization of the companies listed
on the BSE was US$1.68 trillion as of March 2015, making it the 4th largest stock exchange in
Asia and the 8th largest in the world. The BSE has the largest number of listed companies in the
world. As of June 2015, there is over 5,459 listed Indian companies on the stock exchange, the
Bombay Stock Exchange has a significant trading volume. The BSE SENSEX, also called "BSE
30", is a widely used market index in India and Asia.

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The BSE Index, SENSEX, is India's first and most popular Stock Market benchmark index.
Exchange traded funds (ETF) on SENSEX, are listed on BSE and in Hong Kong. Futures and
options on the index are also traded at BSE.

BSE is the first exchange in India and the second in the world to obtain an ISO 9001:2000
certification. It is also the first Exchange in the country and second in the world to receive
Information Security Management System Standard BS 7799-2-2002 certification for its BSE
On-Line trading System (BOLT). Presently, we are ISO 27001:2005 certified, which is a ISO
version of BS 7799 for Information Security

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 ORGANISATION PROFILE

2.1-About The Organisation:-

Karvy was started by a group of five chartered accountants in 1979. The partners decided to
offer, other than the audit services, value added services like corporate advisory services to
their clients. The first firm in the group, Karvy Consultants Limited was incorporated on 23rd
July, 1983. In a very short period, it became the largest Registrar and Transfer Agent in India.
This business was spun off to form a separate joint venture with Computershare of Australia,
in 2005. Karvy’s foray into stock broking began with marketing IPOs, in 1993. Within a few
years, Karvy began topping the IPO procurement league tables and it has consistently
maintained its position among the top 5. Karvy was among the first few members of National
Stock Exchange, in 1994 and became a member of The Stock Exchange, MuPGDMi in 2001.
Dematerialization of shares gathered pace in mid-90s and Karvy was in the forefront educating
investors on the advantages of de-materializing their shares. Today Karvy is among the top 5
Depository Participant in India.

The Karvy group was formed in 1983 at Hyderabad, India. Karvy ranks among the top player
in almost all the fields it operates. Karvy Computershare Limited is India’s largest Registrar
and Transfer Agent with a client base of nearly 500 blue chip corporates, managing over 70
million accounts. Karvy Stock Broking Limited, a member of National Stock Exchange of
India and the Bombay Stock Exchange, ranks among the top 5 stock brokers in India. With
over 6, 00,000 active accounts, it ranks among the top 5 Depository Participant in India,
registered with NSDL and CDSL. Karvy Comtrade, Member of NCDEX and MCX ranks
among the top 3 commodity brokers in the country. Karvy Insurance Broking Limited is
registered as a Broker with IRDA and ranks among the top 5 insurance agents in the country.
Registered with AMFI as a corporate Agent, Karvy is also among the top Mutual Fund
mobilizer with over Rs. 5,000 crores under management. Karvy Realty (India) Limited, which
started in 2006, has quickly established itself as a broker who adds value, in the realty sector.
Karvy Global offers niche off shoring services to clients in the US. Karvy has 575 offices over
375 locations across India and overseas at Dubai and New York.

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2.2- Profile of The Company:-

Name of Company Karvy Stock Broking

Year of Establishment 23rd July 1983
Karvy Centre,8-2-609/K Avennue 4,Street No.1, Banjara Hills,
Headquarter
Hyderabad—500034. Ph:040-23312454, Fax:040-23311968

Nature of Business Service provider

Services Depositary services, online services and technical research.
Number of employee over 4500
Website www.karvyonline.com
Slogan Keep Growing

Vision:- Strive to be the leaders and experts through our processes, people and technology offering the
unique blend that delivers superior value by establishing and maintaining the highest levels of services
and professionalism.

Mission:- To be the leading and preferred service provider to our customers, and we aim to achieve this
leadership position by building an innovative, enterprising, and technology driven organization which
will set the highest standards of service and business ethics

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 THEORETICAL FRAMEWORK

3.1- Understanding of Investor Behaviour:-

Understanding Investor Behaviour When it comes to money and investing, we're not always
as rational as we think we are - which is why there's a whole field of study that explains our
sometimes-strange behaviour. Psychological factors can actually explain why different investors
behave in different ways which affect their investment decisions. Investors might actually
overreact towards some information that they gained and under react towards others.

One of the most common investor behaviours is overconfidence in their judgment towards the
market. This actually happens when they actually underestimate the risk of the investment. The
major mistake of all is when they are overconfidence towards the market; they tend to trade too
much which will lead them to high transaction costs. The transaction costs might even exceed the
returns that they gained.

The second behaviour is the investor tends to have biased self- attribution which means that they
will take all the credit for the returns that they received and they will blame others for their losses
that they encountered. This kind of investors will usually support the information that favour
their beliefs and they will underestimate or not considering the information that are against them.
They usually see the failure to get the returns as the result of the factors that are beyond their
control.

The third behaviour is known as loss aversion. This behaviour often happens to the investors that
dislikes the losses much more than the gains. For example, when a person loss$200, the loss that
he experience will have a bigger impact on him compare with when he is gaining $200. The
investor will usually hang on to the losing stock hoping the price of the stock will bounce back.
They will sell the gaining stock rather than the losing stock.

The fourth behaviour will be representativeness. The investor will usually make strong
conclusions from a very small sample. This means that they actually ignore or underestimate the
effects of random chance. One of the examples is when a stock broker helps the investors to gain

12
from the market for consecutive three months, the investor will assume that the stock broker will
maintain his performance and continue to help him to earn the returns. But actually the investor
overlooks a few matters in this case.

Firstly, the investment period is only 3 months which is a very short time period. Secondly, the
results of the stock broker might just be driven by random chance. The investor should analyze
the investment results for a longer time period before making the judgment that they choose the
right stock broker and they are investing at the right investment. Another behaviour that most
investor might have is the belief perseverance. This actually means that the investor will just
simply ignore the information that is against their existing belief. They will even avoiding
themselves from finding any new information because they afraid that the new information is
against their initial opinion. Once the investor has decided that they make the right choice, they
will believe it even though there is evidence proving that their choice is wrong. Basically, these
are the few of the investor behaviours that explain their actions when dealing with the
investment. Some investors might posses one of the behaviours but some of them might posses
few of these behaviours at one time. Understand these behaviours will help the investors to react
in the market efficiently.

Behavioural Finance Related to Stock Market A stock market or equity market is a public
entity (a loose network of economic transactions, not a physical facility or discrete entity) for the
trading of company stock (shares) 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 $64 trillion at the beginning of October 2013. 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 value of the derivatives market, because it is stated in terms of
notional values, cannot be directly compared to a stock or a fixed income security, which
traditionally refers to an actual value. Moreover, the vast majority of derivatives 'cancel' each
other out (i.e., a derivative 'bet' on an event occurring is offset by a comparable derivative 'bet' on
the event not occurring). Many such relatively illiquid securities are valued as marked to model,
rather than an actual market price.

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 4.1- Research Methodology:-
Research is the process of systematic and in-depth study or search for any particular topic,
subject or area of investigation, backed by data collection. Complication, presentation and
interpretation of relevant details or data. It is a careful search or inquiry into any subject matter,
which is an endeavor to discover or find out valuable facts that would be useful for further
application or utilization.

Research methodology is the systematic problem analysis, model building and fact finding for
the purpose of improved decision making. It is the collection summary and analysis of data
regarding goods and services it helps in deciding the nature and tend demand. Research may
involve a scientific study or experimentation and result in discovery or invention, which would
aid either scientific development or decision making.

Title of Research
“INVESTOR BEHAVIOUR TOWARDS INVESTING IN EQUITY MARKET”

Objective of Research

Primary Objective
 To study the various factors influencing the investment behaviour of individual investors.

Secondary Objective
 To study the impact of the self-image/firm image coincidence on the investor behaviour.
 To identify the influence of the accounting information on the investor behaviour.
 To find out the effect of the factors related to neutral information on the investor behaviour.
 To analyze the impact of the advocate recommendation on the investor behaviour.
 To interpret the effect of the factors related to personal financial needs on the investor
behaviour.
 To study the investment pattern of the investors based on their risk taking abilities.
 To study the investment time horizon of the investors based on their personal profile.

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4.2-Research Design:-
The research design refers to the overall strategy that you choose to integrate the different
components of the study in a coherent and logical way, thereby, ensuring you will effectively
address the research problem; it constitutes the blueprint for the collection, measurement, and
analysis of data.

The research design that is adopted in this study is Descriptive design. Descriptive research is
used to obtain information concerning the current status of the phenomena to describe, "What
exists" with respect to variables or conditions in a situation. The focus of this study was on
revealing the various factors influencing the individual investor behaviour. Thus it involves
Statement of the problem, Identification of information needed to solve the problem, Selection or
development of instruments for gathering the information, Identification of target population and
determination of sampling procedure, Design of procedure for information collection, Collection
of information, Analysis of information.

Sample Size

5O Respondents

Sampling Method

Survey Sampling

Method of data collection

Research design includes selecting appropriate data collection method. It can be obtained by
primary data or secondary data. The primary data is collected through Questionnaire and Direct
Personal Interview.
Secondary data

 Articles
 Annual report
 Research papers

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4.3- Scope of the Study:-
Research in behavioural finance has important applications. A better understanding of
behavioural processes and outcomes is important for financial planners because an understanding
of how investors generally respond to Data were collected through both primary and secondary
data sources.

Questionnaire Design
Proper care has been taken to ensure that the information needed match the objectives, which in
turn match the data collected through the questionnaire. The basic cardinal rules of Questionnaire
design like using simple and clear words, the logical and sequential arrangement of questions has
been taken care of.

Secondary Data
Secondary data consist of information that already exists somewhere, have been collected.
Secondary data is collected from company websites, other websites, magazines and brochures.

4.4- Limitation of the Study:-

Every research is conducted under some constraint and this research is not an exception.
Limitations of this study are as follow-
 As a research is based on a sample, therefore, the finding may not reveal the factual
information about the research problem, though an almost care will be taken to
select a truly representative sample.
 There may be some bias in the response of the respondents which cannot be ruled
out fully.
 The study was done on limited area Investors.
 The sample size of only 75 was taken from the large numbers of Investors for the
purpose of study, so there can be difference between results of sample.

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 Data Analysis and Interpretation
5.1- Data Analysis:-
The factors are analyzed under the following broad phases:
PHASE I: Personal Factors
PHASE II: Behavioural Factors

PHASE I
Personal Factors
This phase includes the personal details of the investors. The factors considered are gender,
qualification, work status, income and life stage.

PHASE II
Behavioural Factors
In this particular phase the responses for the various behavioural factors of the investors that
have been considered in the questionnaire have been analyzed. The investors’ financial
resources, emotional risk tolerance, financial literacy level and various other factors have been
analyzed in this phase.

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 PHASE-1
Personal Factors
1. GENDER DISTRIBUTION OF THE INVESTOR

TABLE-1.1

S.No. Gender No. of Respondent Percentage

1 Male 62 82.66% (Appox. 83%)
2 Female 13 17.33% (Appox. 17%)
TOTAL 75 100%

PRIMARY DATA COLLECTION

The table 1.1 indicates that out of the total respondents, 62 were male and 13 were female.
Majority of the investors are male.

CHART-1.1

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2. AGE DISRIBUTION OF THE INVESTOR

TABLE-1.2

S.No. Age limit No. of Respondent Percentage

1 Below 20 yr. 2 2.66%
2 21 to 30 yr. 13 17.33%
3 31 to 40 yr. 34 45.33%
4 41 to 50 yr. 18 24%
5 51 to 60 yr. 6 8%
6 Above 60 yr. 2 2.66%
TOTAL 75 100%

PRIMARY DATA COLLECTION

The table 1.2 indicates that out of the total respondent’s appox. 46% peoples are under 31yr to
40yr. and least are under above 60 yr. Majority of the investors are under 31 to 40yr.

CHART-1.2

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3. OCCUPATION DISTRIBUTION OF THE INVESTOR

TABLE-1.3

S.No. Occupation No. of Respondent Percentage

1 Business 25 33.33%
2 Govt. Service 21 28%
3 Employee 12 16%
4 Student 13 17.33%
5 Other 4 5.33%
TOTAL 75 100%

PRIMARY DATA COLLECTION

The table 1.3 indicates that out of the total respondents mostly investors are businessman and
approx. It have 33.33% of total respondent, least investors are belong to NGO person, contractor,
housewives etc.

CHART-1.3

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4. INCOME(YEARLY) DISTRIBUTION OF THE INVESTOR

TABLE-1.4

S.No. Income No. of Respondent Percentage

1 Less than 1,00,000/- 15 20%
2 1,00,000 to 2,00,000/- 10 13.33%
3 2,00,000 to 3,00,000/- 17 22.66%
4 3,00,00 to 4,00,000/- 21 28%
5 4,00,000 to 5,00,000/- 9 12%
6 Above 5,00,000/- 3 4%
TOTAL 75 100%

PRIMARY DATA COLLECTION

The table 1.4 indicates that out of the total respondents, mostly investors are under income range
of 3,00,000/- to 4,00,000/- which is approx. 28% of total And least investors are from above
5,00,000/- only 5% of total respondent

CHART-1.4

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 PHASE-2

Behavioural factor

1. IF YOU WANT TO INVEST, WHICH INVESTMENT OPTION WILL PROVIDE

THE BEST RETURN?

TABLE 2.1

S.No. Investment Option No. of Respondent Percentage

1 Equity share 30 40%
2 IPO 5 6.66%
3 Mutual funds 22 29.33%
4 Bonds 4 5.33%
5 Fixed deposits 12 16%
6 Other 2 2.66%
TOTAL 75 100%

PRIMARY DATA COLLECTION

The table 2.1 indicates that out of the total respondents 30 respondent out of 75 invest their
money in to equity market after those 22 investors are those who invest money in to Mutual
fund.

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 CHART 2.1

2. WHICH FACTORS MOTIVARE TO INVESTING ACCORDING TO YOU IN

EQUITY MARKET?

TABLE - 2.2
S. No. Factors No. of Respondent Percentage
1 Returns 29 38.66%
2 Liquidity 21 28%
3 Safety 5 6.66%
4 Capital appreciation 18 24%
5 Other 2 2.66%
Total 75 100%

PRIMARY DATA COLLECTION

The table 2.2 indicates that out of the total respondents mostly 29 which are 38.66% of total
respondent says that Returns motivates them to investing in equity market.

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 CHART - 2.2

3. DO YOU INVEST IN EQUITY MARKET?

TABLE – 2.3
S. No. Response No of Respondent Percentage
1 YES 49 65.33%
2 NO 26 34.66%
TOTAL 75 100%

PRIMARY DATA COLLECTION

The table 2.3 indicates that out of the total respondents 49 people which is 65% of total
respondent invest their money into equity market, on the other side 35% which is 26 respondent
don’t invest their money into equity market.

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 CHART – 2.3

4. IN WHICH COMPANY DO YOU HAVE A DEMAT & TRADING ACCOUNT?

TABLE – 2.4

S. No. Company No. of Respondent Percentage

1 ICICI direct 20 40.8%
2 Karvy 13 26.53%
3 Kotak securities 6 12.24%
4 Angel Broking 3 6.1%
5 Motilal oswal 2 4.08%
6 Other 5 10.20%
TOTAL 49 100%

PRIMARY DATA COLLECTION

The table 2.4 indicates that out of the total respondents mostly investors have their trading
account in ICICI direct and with 26.53% Karvy is took 2nd position in market

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 CHART – 2.4

Karvy

5. ARE YOU SATISFIED WITH YOUR PRESENT BROKING COMPANY?

TABLE – 2.5

S. No. Responses No. of Respondent Percentage

1 YES 38 77.55%
2 NO 11 22.44%
TOTAL 49 100%

PRIMARY DATA COLLECTION

The table 2.5 indicates that out of the total respondents 38 investor satisfy with their broking
company on the other hand 11 investors are not happy with their present broking company.

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 CHART – 2.5

6. HOW MUCH PERCENTAGE OF YOUR INCOME YOU INVEST IN EQUITY

MARKET?

TABLE – 2.6

S.No. Percentage of Income No. of Respondent Percentage

1 Less than 5% 8 16.32%
2 6%-10% 14 28.57%
3 11%-15% 12 24.48%
4 16%-20% 7 14.28%
5 21%-25% 5 10.20%
6 More than 25% 3 6.12%
TOTAL 49 100%

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PRIMARY DATA COLLECTION

The table 2.6 indicates that out of the total respondents 14 people invest their 6%-10% income in
equity market

CHART – 2.6

7. HOW DO YOU TRADE IN EQUITY MARKET?

TABLE – 2.7

S.No. Options No. of Respondent Percentage

1 Intraday 12 24.48%
2 Delivery 21 42.8%
3 Speculation 9 18.36%
4 Arbitragers 2 4.08%
5 Hedging 5 10.20%
6 Other 0 0
TOTAL 49 100%

SOURCE: - Primary Data

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The table 2.7 indicates that out of the total respondents 21 out of 49 respondents’ deals in
delivery which is approx. 43% of total respondents.

CHART – 2.7

8. WHAT IS THE TIME HORIZON FOR INVESTING IN EQUITY MARKET?

TABLE – 2.8

S.No. Percentage of Income No. of Percentage

Respondent
1 Less than 1 month 6 12.24%
2 1 to 3 months 17 34.69%
3 3 to 6 months 12 24.48%
4 6 to 12 months 7 14.28%
5 More than 12 months 7 14.28%
TOTAL 49 100%

PRIMARY DATA COLLECTION

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The table 2.8 indicates that out of the total respondents 17 out of 49 respondent do trading in
equity market on the basis of 1 to 3 months.

CHART – 2.8

9. WHAT IS THE RATE OF RETURN EXPECTED BY YOU FROM EQUITY

MARKET IN A YEAR?

TABLE – 2.9

S. No. Rate of return No. of Respondent Percentage

1 5% - 10% 7 14.28%
2 11% - 15% 17 34.69%
3 16% - 20% 14 28.57%
4 21% - 25% 5 10.20%
5 26% - 30% 4 8.16%
6 31% above 2 4.08%
TOTAL 49 100%

SOURCE: - Primary Data

30
The table2.9 indicates that out of the total respondents 17 out of 49 respondents expect rate of
return from market is between 11% to 15% in a year.

CHART – 2.9

10. ARE YOU SATISFIED WITH THE CURRENT PERFORMANCE OF THE EQUITY
MARKET IN TERMS OF EXPECTED RETURN?

TABLE – 2.10

S.No. Level No. of Respondent Percentage

1 Fully satisfied 3 6.12%
2 Satisfied 23 46.93%
3 Neutral 20 40.81%
4 Unsatisfied 3 6.12%
5 Fully unsatisfied 0 0
TOTAL 49 100%

SOURCE: - Primary Data

The table 2.10 indicates that out of the total respondents 23 respondents are satisfied with the
market performance with 46.93%.

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 CHART – 2.10

11. WHO ADVISE YOU TO ENTER IN EQUITY MARKET?

TABLE – 2.11

S.No. Name of Advises No. of investor Percentage

1 Friends 11 22.44%
2 Relatives 7 14.28%
3 Advisers 18 36.73%
4 Media 5 10.20%
5 Research report 7 14.28%
6 Magazines 1 2.04%
7 Other 0 0
TOTAL 49 100%

PRIMARY DATA COLLECTION

The table 2.11 indicates that out of the total respondents mostly investor prefer advisers for
investing in equity market with highest 36.73%.
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 CHART – 2.11

12. WHICH FACTORS DO YOU CONSIDER MOST IMPORTANT WHILE

SELECTING THE SECTORS?

TABLE – 2.12

S.No. Factors No. of Percentage

Respondent
1 Market trend 13 26.53%
2 Profitability 20 40.81%
3 Economic conditions 6 12.24%
4 Industry condition 5 10.20%
5 Well established companies under sectors 3 6.12%
6 Government policies 2 4.08%
7 Other 0 0
TOTAL 49 100%

PRIMARY DATA COLLECTION

33
The table 2.12 indicates that out of the total respondent’s investor consider profitability factor
most it appox. 41% of investor who prefer profitability factor.

CHART – 2.12

13. WHICH SECTOR DO YOU PREFER THE MOST?(GIVE 1 TO 5 ORDERS IN

GIVEN BOXES)

TABLE – 2.13

S.No.
Scale
1 2 3 4 5 Total
Sector
1 Oil & Gas Sector 6 5 8 17 13 49
2 Infra Sector 2 10 7 12 16 49
3 Banking sector 18 10 7 8 5 49
4 Auto Sector 7 6 15 12 9 49
5 IT sector 11 13 8 10 7 49

SOURCE: - Primary Data

34
The table 2.13 indicates that out of the total respondents 19 respondent prefer banking 1 st, 13
prefer IT at 2nd, 15 prefer auto at 3rd position, 17 prefer oil and gas at 4th, and 16 prefer infra at 5th
position.
CHART – 2.13

14. MENTION THE MOST IMPORTANT FACTORS FOR SELECTING A COMPANY

OF YOUR CHOICE?

TABLE – 2.14

S.No. Factors No. of Percentage

Respondent
1 Earnings per share 13 26.53%
2 Dividend 5 10.20%
3 Broker’s advise 8 16.32%
4 Market capitalization 6 12.24%
5 Performance of company 15 30.61%
6 P.E Ratio 2 4.08%
7 Other 0 0
TOTAL 49 100%

PRIMARY DATA COLLECTION

35
The table 2.14 indicates that out of the total respondents mostly prefer performance of company
to invest in stock according to study it is approx. 30% people who prefer the most.

CHART – 2.14

36
5.2- Findings:-

 The respondents belong to different socio-economic background in terms of age,

gender, occupation, and annual income.
 Majority of the investors (80%) are male.
 Majority of the investors (45%) are under 31 to 40yr.
 Majority of the investors (33%) are doing their own business.
 From the study it was revealed that 28% of the investors have income of 3,00,000/- to
4,00,000/- per annum and another 4% of the investors have the income of Above
5,00,000/- per annum.
 From the study it was found that majority of the investors (40%) are go with equity
share for best investment option in terms of returns. Along with (30%) says about
mutual funds for best returns.
 It was found that (51%) investors go with Returns in terms of factor which is
motivates them to invest money in equity market.
 Majority of the investors (65%) invest their money in to equity market.
 Majority of the investors (41%) having their D-Mat and trading account in ICICI
direct, after that (26.5%) having their account in Karvy.
 Majority of the investors (77.55%) are satisfied with their present broking company.
 From the study it was found that majority of the investors (28.57%) invest 6%-10%
income in equity market only (6%) investors invest their more than 25% income in
equity market.
 Majority of the investors (42.8%) are trade in equity market via Delivery option
 Majority of the investors (34.69%) are invest money in between time horizon from 1
to 3 months
 From the study it was found that majority of the investors (34.69%) expected
11%-15% returns from equity market in a year.
 Majority of the investors (46.93%) are satisfied with the current performance of the
equity market in terms of expected returns.
 From the study it was found that majority of the investors (36.73%) take advice from
advisers before investing in equity market.
37
 From the study it was found that majority of the investors (40.81%) see profitability
of company before investing money into equity market.
 From the study it was found that majority of the investors prefer banking sector for
investment purpose, than IT sector, than Auto sector, than Oil and gas sector, than
Infra sector. And along with investor prefer Pharmaceuticals sector for investment.
 From the study it was found that majority of the investors (30.61%) see performance
of company before selecting the company before investing.

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 SUGGESTION AND CONCLUSION

6.1-Conclusion:-
 The study entitled “ANALYSIS OF KARVY STOCK BROKING LTD.”” would help

the share brokerage firms to take care of the factors influencing their investors and can

give proper asset allocation strategy to their investors. The listed companies can also look

at the most influencing factors and can focus much on these factors to attract the

investors to invest in them.

 The study was conducted for a period of 45 days. The study aimed at identifying the most

and the least influencing factors of the individual investors. Survey sampling method was

used in the study and a sample size of 75 investors was taken for the study. The primary

data was collected through structured questionnaire. The questionnaire included 23 items

that belong to in two phase. The research design that is adopted in this study is

descriptive design.

 The data collected through questionnaire has been analyzed using Pie charts and bar

diagrams were used in the study for better understanding.

Through this, the researcher helped the company to know more about the factors influencing
their investors and also helped to focus on those factors to provide better customer Service.
Majority of the respondents are influenced by the Accounting information of the companies and
advocate recommendation is the least influencing group. Suggestions were also made for further
understanding of the investor behaviour

39
6.2- Suggestion:-

After analyzing the various factors influencing the individual investor behaviour the following
suggestions are made for better understanding of the investor behaviour.
 Since the research reports is one among the least influencing factors, the company
should go for in-depth research to find out the reasons for it.
 Broking firms should give analysis about the latest stock market trends and have to
take a close look at the various investment options, and products available in the
market to their clients.
 Mostly investors prefer investing money into equity market only in between 1 to 3
month it should be 6 to 12 month or more than 12 month, so brokers and advisers
should encourage people to invest money for a long term.
 Mostly investor invest only 6% to 10% of their income into equity market, it should
be 16 to 20% of their income for better returns and diversification.
 Many big stock broking firms not doing their business in Udaipur area it is also a
reason for people not investing their money in to equity market. Only few companies
running their business in Udaipur and ICICI direct one of the major participant in
market.

40
 Bibliography
Research Papers:-
1. A study on the Individual Investor Behaviour with special Reference to Geojit BNP Paribas
financial Services Ltd, CoiPGDMtore, “Gnani Dharmaja V.,Ganesh J., Dr. Santhi V.“PSG
College of Technology, CoiPGDMtore, India “IRACST- International Journal of Research in
Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 2 No.2, April 2015”

2. Impacting factors on Individual Investors Behaviour towards commodity market in india , “A.
Elankumaran, A.A Ananth ” Department of Business Administration, Annamalai University.

3. A study on “INDIVIDUALS INVESTORS BEHAVIOUR IN STOCK MARKETS OF

INDIA” “Rakesh H.M ” IJMSS Vol.02 Issue-02, (February, 2014) ISSN: 2321-1784

Websites:
1. www.bseindia.com

2. www.nseindia.com

3. www.valuresearchonline.com

4. www.karvyonline.com

5. www.moneycontrol.com

6. www.chittorgarh.com

41
 Annexure
Questionnaire
On
“INVESTORS BEHAVIOUR TOWARDS INVESTING IN EQUITY MARKET”
Dear respondent,

I am Abhilasha Chhazed student of, Somlalit Institute of Management Studies, Udaipur currently
carrying out a research as part of partial fulfilment of the requirements for the INVESTOR BEHAVIOUR
TOWARDS INVESTING IN EQUITY MARKET. The study is entirely academic and the information
provided shall be treated with utmost confidentiality .You are therefore requested to fill in this
questionnaire with utmost good faith.

Thank You

PART- 1
 Name: ____________________________________________________________________
 Address: ____________________________________________________________________
____________________________________________________________________

 E-mail ID: ___________________________________________________________________

 Contact No.: +91-_____________________________________________________________
 Gender [ ] Male [ ] Female

 Age:

[ ] Below 20 Years [ ] 21 TO 30 Years [ ] 31 TO 40 Years

[ ] 41 TO 50 Years [ ] 51 TO 60 Years [ ] Above 60 Years

 Occupation:
[ ] Business [ ] Service [ ] Employee
[ ] Student [ ] Other please specify _____________

 Income (Yearly):
[ ] Less than 100000 Rs. [ ] 100000 to 200000 Rs. [ ] 200000 to 300000 Rs.

[ ] 300000 to 400000 Rs. [ ] 400000 to 500000 Rs. [ ] Above 500000 Rs.

42
PART- 2

1.If you want to invest, which investment option will provide the best returns?

[ ] Equity Share [ ] IPO [ ] Mutual Funds

[ ] Bonds [ ] Fixed Deposits [ ] If any other _________

2.Which factors motive you investing in Equity Market?

[ ] Return [ ] Liquidity [ ] Safety

[ ] Capital Appreciation [ ] If any other please specify ___________________

3.Do you investing in Equity Market?

[ ] Yes [ ] No

4. In which company do you have Demat & Trading Account?

[ ] Karvy [ ] ICICI Direct [ ] Angel Broking

[ ]Motilal Oswal [ ] Other:____________________________________

5.Are you satisfied with your present broking company?

[ ] Yes [ ] No

6.How much percentage of your income you invest in Equity Market?

[ ] Less than 5% [ ] 6%-10% [ ] 11%-15%

[ ] 16%-20% [ ] 21%- 25% [ ] More than 25%

7.How do you trade in Equity Market?

[ ] Intraday [ ] Delivery [ ] Speculation [ ] Arbitragers

[ ] Hedging [ ] If any other please specify _____________

8.What is the time horizon for investing in Equity Market?

[ ] Less than 1 Months [ ] 1 to 3 Months [ ] 3 to 6 Months

[ ] 6 to 12 Months [ ] More than 12 Months

9.What is the rate of return expected by you from Equity Market in a year?

[ ] 5% – 10 % [ ] 11% – 15 % [ ] 16% – 20%

[ ] 21% – 25% [ ] 26% –30% [ ] 30% above

43
10.Are you satisfied with the current performance of the Equity Market in terms of expected

return?

[ ] Fully Satisfied [ ] Satisfied [ ] Neutral

[ ] Unsatisfied [ ] Fully Unsatisfied

11.Who advise you to enter in Equity Market?

[ ] Friends [ ] Relatives [ ] Advisers [ ] Media

[ ] Research Report [ ] Magazines [ ] If any other ___________

12.Which Factors do you consider most important while selecting the Sectors?

[ ] Market Trend [ ] Profitability [ ] Economic Condition

[ ] Industry Condition [ ] well established Companies under Sectors

[ ] Government Policy [ ] If any other please specify __________________

13.Which Sector do you prefer the most? (Give 1 to 5 Orders in given boxes)

[ ] Oil & Gas Sector [ ] Infrastructure Sector [ ] Banking Sector [ ] Auto Sector

[ ] IT Sector [ ] If any other please specify _____________

14.Mention the most important factors for selecting a company of your choice.

[ ] Earning Per Share [ ] Dividend [ ] Broker’s advise [ ] Market capitalization

[ ] Performance of company [ ] P.E. Ratio [ ] If any other _____________

___________________________________________________________________________
___________________________________________________________________________

44