consumer preferance to equity market & commodity market

Title:- Consumer Preference to Equity market & Commodity market

Presented by:- Vatsal D. Thakkar (137780592109)Mentor:- Dr. J. P. Joshipura

Summer internship project

About Broking Industry A brokerage firm is a financial institution that facilitates the

buying and selling of financial securities between buyer and seller.

The staff of brokerage firm is entrusted with the responsibility of researching the markets to provide appropriate recommendations.

These firms also offer margin loans for certain approved clients to purchase investments on credit, subject to agreed term & condition.

Traditional brokerage firms have also become a source of up-to-date stock prices & quotes.

Established in December,1996 by M/S. Sureshchand S. Jain.

Sectors: SSJ Finance & Securities (P) Ltd. (BSE,

NSE, CSE, and CDSL) SSJ Commodities (P) Ltd. (MCX, NCDEX)Company is known for it’s service & perfect

guideline.Their business is built upon three important

cornerstones… Their Client, Business Associates and Employees.

Literature Review

Kumar, R. and Chandra, A. (2000), had studied that Individuals often invest in securities based on approximate rule of thumb, not strictly in tune with market conditions.

Sen Shankar Som and Ghosh Santanu Kumar (2006) studied the relationship between stock market liquidity and volatility and risk.

Problem Statement & objectiveThere is a negative view by investors for

equity market and commodity market.Knowing the investing patterns for equity

market and commodity market.Differentiate the view of investors towards

equity & commodity.

Research MethodologyResearch Design : Exploratory

Data Source:

Primary: Questionnaire

Secondary: websites and book

Research Instrument : Structured questionnaire

Sample Respondent Profile: Investors who invest

their saving

Sampling Method : Random sampling

Sample size: 100 observation

business38%

profession13%

govt. Service16%

private service24%

others9%

ocupation

Occupation No.Business 38

Profession 13

Govt. Service 16

Private service 24

Others 9

Q. Which of the following will best describe your occupation?

Q. What is your annual income?

Income No.<50000 14

50001-100000 21

100001-200000 47

200001-400000 12

>400000 6

<5000014%

50001-10000021%

100001-20000047%

200001-400000

12%

>4000006%

Income

Q. What is percentage of your income do you invest?

Income Investors

<5% 75-10% 1910-15% 3715-20% 1720-25% 1225%< 8

7%

19%

37%

17%

12%

8%

Investment from income

<5%5-10%10-15%15-20%20-25%25%<

Q. What is percentage of your income do you invest?

Investment Investors(%)Bank deposit 73Mutual funds 32Real estate 17Life insurance 67Equity & commodity 60Derivative market 14Govt. Bonds 6

Bank de-posit

Mutual fund

Real es-tate

Life in-surance

Equity & commdity

Derivative market

Govt. Bonds

Invst-ment

73 32 17 67 60 14 6

5

15

25

35

45

55

65

75

Invstment

inveto

rs(%

)

Q. Which among these investment criteria you usually prefer?

Criteria Investor Risk 57Return 85Liquidity 37Tax rebate 14Marketability 32Tenure 42

Risk Return Liquidity Tax rebat Mar-ketibility

Tenure

Criteria 57 85 37 14 32 41

5

15

25

35

45

55

65

75

85

Criteria

invest

or

(%

)

Q. In which investment invest your savings?Investment Investors

Equity 37

Commodity 18

Both 6

EQUITY(37) COMMODITY(18)

BOTH (6)

Q. In which market do you prefer to trade?Market Investors NSE 35BSE 10Local 2

NSE BSE LOCAL

Markets 35 10 2

2.5

7.5

12.5

17.5

22.5

27.5

32.5

37.5

Markets

Axis Title

Q. In which sector do you most prefer to invest?Sectors Investors Banking 15It 9Oil & Gas 6Pharmaceutical 7Telecommunication 10Automobile 12Other 11

Bank-ing

IT Oil & Gas

Phar-maceu-

tical

Telecommu-nica-tion

Auto-mobile

other

Series 1 15 9 6 7 10 12 11

1

3

5

7

9

11

13

15

Investor sectors

Axis Title

Q. Which type of trading do you most prefer?Trading pattern Investors Intra day 25Delivery 12Future & option 6

58%28%

14%

Treding patern

intra daydeliveryfuture & option

Q. What attracts you towards equity market?

High long term 12Quick short term 31

Quick short term gain; 31

High long term gain; 12

Q. How often do you trade?

Frequency Investor

Daily 58Often 42

Daily58%

often42%

Frequancy of trade

Q. Which commodity you prefer for trading?

Commodity Type Investors Precious metal 15Base metal 6Agro products 0Energy product 3

63%

25%

13%

Sales

Precious metal Base metalAgro productsEnergy product

Q. Which type of trading do you most prefer?

Type of trading Investors Intra day 15Positional 7

68%

32%

Type of Trading

Intra day Positional

Q. What attracts you towards commodity market?Reasons Investors High return 16Short term gain 15Speculation 6Liquidity of investments 1

High return Short term gain

Speculation Liquidity of investments

0

2

4

6

8

10

12

14

16

18

attraction for commodity

attraction for commodity

Q. what is better?

Investments InvestorsEquity 42Commodity 19

69%

31%

what is better?

Equity Commodity

Findings

After survey, research and data analysis I can able to understand that every investor has different view towards investments.

Every customer’s income and nature impact on his investment.

In current scenario investors become smarter in investments and use their savings smartly.

Consumer don’t like to take interest in agri. Product’s market.

Contribution and learning from the projectAfter SIP I realize there is crucial role

of broking industry to guide investors.Investor has different behavior in

different situation of market trends.Investor more prefer equity market

than commodity market. I learned how equity & commodity works, how

trades are done and how market is work. I learned oddin software, basics of RMS and

back office.

Limitations of the studyMain limitation of study is bias of customers

towards different investments. Investors not given true information.

Referenceswww.moneycontrol.com www.investopedia.comwww.finance.yahoo.comwww.wikipedia.orgwww.businesstoday.comwww.ssjfinance.com