Equity Market Project

7/30/2019 Equity Market Project

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CONTENTS

Sl. No. Particulars Page No

I. 1.1 INTRODUCTION

1.2 OBJECTIVES

1.3 RESEARCH METHODOLOGY

1.4 SCOPE OF THE STUDY

1.5 LIMITATIONS OF THE STUDY

1.6 CHAPTER SCHEME

II. THEORETICAL BACKGROUND

III. PROFILE OF KARVY

IV. ANALYSIS AND INTERPRETAION OF DATA

V. FINDINGS, SUGGSTIONS AND

CONCLUSION

BIBLIOGRAPHY

ANNEXURE


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CHAPTER-1

1.1 INTRODUCTION

The concept investment means employment of funds to earn additional

income or growth in terms of value the essential quality of an investment isexpectation of reward it involves the commitment of resources which have

been from current consumption in the hope that some benefits will bereceived in future.

Investment in equities is also on the basis of income of the family, theinvesting ability may differ from persons to person according to their earning

capacity. It has been long since investor has forgotten to go through theprimary as well as secondary market.

The small and medium investors also fear to put that their hard earnedmoney in the stock market due to a continuous fall in the interest rates of all

the savings schemes in banks, post-office, non-banking, financial companiesand provident funds the hard earned money of people is being eaten awayby inflation but the stock market is the place next to direct business where

erosion money due to inflation can be tripled in a few days in stock marketand that an investor may burn his fingers due to evaporation of money thetask of earning profits through trading in equities is not easy particularly for

those who are not fully aware of the trading system at stock exchange.

Investing in equity market is good opportunity for all investor. It involvesrisk and return investing has been acting confined to the rich and business

class in post but today it has become a household word and is very popularwith people from all works of life. Derivatives as a tool in financial market aswell as the market has been thin with poor liquidity and has not grown toany significance level these for research has selected on this topic to know

the investment opportunities in equity market.

1.2 OBJECTIVES

1) To study the investment opportunity in equity market2) To study the market potential for equity market as an investment3) To know the risk tolerance level of the investor

4) To study in detail about services provided by karvy for equity marketin gulbarga

5) To know the satisfaction level of investors towards karvy


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1.3 RESEARCH METHODOLOGY

The project deals with a study on investors opportunities in equity

market with special reference to karvy stock broking limited. Informationin this regard is collected from primary data and secondary data.

A. statement of problem

Investing in equity market is good opportunity for all investors. It

involves risk and returns, derivatives as a tool for managing risk in theequity markets then found useful as a hedging tool in financial markets

as well as the market has been thin and poor liquidity and has not grownto any significant level. There for research has selected on this topic to

know the investment opportunities in growing equity market..

B. Research Design

A research design was purely and simply the framework or plan forthe study the guided the collection and analysis of the data. The project

is undertaken A study on investment opportunities in equity market withspecial reference to karvy stock broking limited in Gulbarga.

C. Sample selection

The data was collected from 50 investors. The area for collection ofdata was in Gulbarga city.

D. Nature of the data collection

Primary data

Secondary data

Primary Data

The primary sources include:- Questionnaire

- Discussions

Secondary DataThe secondary Data was colleted from the followings:

- Text books

- Company profile

- Website of the company


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1.4. SCOPE OF THE STUDYThe study was carried out by researcher to study the investors

opportunities in equities market service provided by karvy stock brokinglimited in Gulbarga.

The present study not only describes the opportunities of the

investors in equity market but also provided valuable suggestions regardingthe service for the enrichment of the company in future.

1.5. Limitation of the study

1) The project work to be completed within a stipulated period oftime, Hence time is major constraint for completion of the study.

2) The study was confined only to karvy broking limited at Gulbargacity only.

3) During the discussion some of respondents were relevant toinformation and some have given biased information.

4) The study was restricted to 50 respondents in Gulbarga city.

1.6. CHAPTER SCHEME

The study has been divided into five chapters:The first chapter consists of introduction to the study, objectives,

research methodology, scope and limitation of the study and chapterscheme.

The second chapter consists the theoretical background.

The third chapter explains about profile of Karvy.

The fourth chapter focuses on the data analysis and its interpretation.

The fifth chapter concludes with the findings, suggestion and

conclusions.


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CHAPTER-2

THEORETICAL BACKGROUND

INTRODUCTION

Investment is the employment of funds in order to achieve additionincome or growth in value. Investment involves waiting for a reward. It

involves the commitment of resources which have been saved or put away

from current consumption. In the hope that some benefits will accrue in thefuture. Investment has been further categorized by financial expert andeconomist.

FINANCIAL AND ECONOMIC INVESTMENT

Investment is the allocation of monetary resources to assets thatare expected to yield some gain or positive return over a given period of

time. These assets may range from safe investment.

Economic investment means the net additional to the economiesof the stock which consists of goods and services used in production of other

goods and services. The financial and economic meanings of investments arerelated to each other because an investment is a part of the savings ofindividuals.

MEANING OF EQUITY

Equity is term whose meaning depends very much on thecontext. In general, you can think of equity as ownership in any assets after

all debts associated with that asset are paid off.

Share or equity represents part of an ownership of a business.So as a shareholder you own a piece of the action that happens in that

business. Why would you want a piece of the action? For the rewards ofcourse. As a shareholder you have a right over.

Common stocks, are equity because they represent ownership of

a company where as bonds are classified as debt because they represent anobligation to pay no ownership of assets.


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CHARACTERISTICS OF COMMON STOCK

Two most important characteristics of common stock as aninvestments are its residual claim and limited liability features.

Residual claim means that stockholders are the last in line of

all those who have on the assets and income and income of the corporation.

Limited liability means that the most shareholders can loss inthe events of failure of the corporation is there original investment.

A stock market is a market for the trading of company stock,and derivatives of same; both those securities listed on a stock exchange aswell as those only traded privately.

Although common, the term stock market is a somewhat

abstract concept for the mechanism that trading of company stocks. It isalso used to describe the totality of all stocks, especially within one country,

for example in the phrase the stock market was up today, or in the ternstock market bubble.

It is distinct from a stock exchange. , which is an entity (acorporation or mutual organization) in the business of bringing buyers andsellers of stocks together. For example, the stock markets in the united

states includes the trading of stocks listed on the NYSE, NASDAQ, and AMEX,and also on the OTCBB and pink sheets.

The stock market is one of the most important sources for

companies to raise money. Experience has taught us that the price of sharesand other assets is an important part of the dynamics of economic growth.Rising share prices, for insurance, tend to be associated with increasedbusiness investment and vise verse. Share prices also affect the wealth of

households and their consumption. Therefore, central banks tend to keep anArgus eye on the development of the stock market and reflect on how the

financial system functions. Another reason is the oversight of financialstability.

TRADING


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Participants in the stock market range from small private stockinvestors to large hedge fund traders, who can be based anywhere. Theirorders end op with a professional at the stock exchange, who executes the

order.

BRIEF HISTORY OF STOCK EXCHANGE

THE BRIEF OF STOCK EXCHANGES IN India back to the 1840s.there were 50-60 brokers led by the legendary Premchand, Royachand. Theyformed the back bone of share floatation by the East India Company and a

few commercial banks. In 1875, native share and stock broker association. Avoluntary non-profit association of person it mobilized funds for industrial

growth and government securities, especially of Bombay port trust andBombay Municipality. A similar organization was set up in Ahmadabad in

1894.

As a result of the swadesi movement and the coal boom of 1904-08, Kolkata became another major center of share trading and exchange

was set up in 1908. During inter war years, as the demanded and new oneswere floated. Yet other stock exchange was started in madras in 1920. The

stock exchange in Hydrabad and Delhi started operation in the years 1943and 1947, rasp [actively. At the time of independence, there seven stock

exchanges functioning in major cities of the country].

From the seven stock exchanges in 1946, the country moved toform a total of 19 stock exchanges by 1990. There were 5,698 companieslisted as against 1,125 in 1946. The paid up capital of these companiesmultiplied many fold forms Rs 270 corers in1946 to 27,761 corers in

1990.the market capitalization of listed companies pumped for Rs 971corers in 1946 to 70,521 corers in 1990.

From the nineties, started the current phase under which Indian

stock exchanges are undergoing a rapid transition to be at par with stockexchange in the developed world. Before 1990, the trading system was openoutcry system with scripts classified as non-specified or cash scripts thatwere compulsory settled with delivery at the end of settlement. There were

long and varying periods for specified and non-specified share in the oldcleaning system because of the interaction involved in the physical form the

shares. Present there are 23 recognized stock exchanges with 6000 stockbrokers.

A stock exchange or share market is a corporation or mutualorganization which provides facilities for stock brokers and traders, to tradecompany stocks and other securities. Stock exchanges also provides facilities


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for the issues and redemption of securities, as well as. Other financial

instruments and capital events including the payment of income anddividends. The securities traded to a stock exchange include: share issuedby companies, unit trusts and other pooled investment products and bonds.

To be able to trade a security on a certain stock exchange, it has to be listedthere. Usually there is a central location at least for record keeping, buttrade is less and less linked to such a physical place, as modern markets are

electronic networks, which gives those advantages of speed and cost oftransactions. Trade on an exchange is by members only. The initial offering

of stocks and bonds to investors is by definition done in the primary marketand subsequent trading is done in the secondary market. Supply anddemand in stock markets are driven by various factors which, as in all freemarkets, affect the price of stocks (see stock valuation).

There I usually no compulsion to issue stock via the stock exchange

itself, not must stock be subsequently traded on the exchange. Such tradingis said to be off exchange or over-the-counter. This is the way that bonds

are traded. Increasingly, stock exchanges are part of a global market forsecurities.

THE ROLE OF STOCK EXCHANGES

Raising capital for businesses: The stock exchange provides

companies with the facility to raise capital for expansion through sellingshares to the investing public.

Mobilizing savings for investment: What people draw their savings and

invest in shares, it leads to a more rational allocation of resources becausefunds, which could have been consumed, or kept in idle deposits with banks,are mobilized and redirected to promote business activity with benefits ofseveral economic sector such as agriculture, commerce and industry,

resulting in a stronger economic growth and higher productivity levels.

Facilitating company growth: Companies view acquisition as anopportunity to expand product lines, increase distribution channels, hedge

against volatility, increase its market share, or acquire other necessarybusiness asset. A takeover bid or a merger agreement through the stockmarket is one of the simplest and most common ways for a company togrow by acquisition or fusion.

Redistribution of wealth: stock exchanges do not exist to redistribute

wealth although casual and professional stock investor through stock priceincrease (that may result in capital gains for the investor) and dividends get

a chance to share in the wealth of profitable business.

Corporate governance: By having a wide and varied scope of owners,companies generally tend to improve on their management standards and


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efficiency in order to satisfy the demands of these shareholders and the

more stringent rules for public corporation imposed by public stockexchanges and the government. Consequently, it is alleged that publiccompanies (companies that are owned by shareholders who are members of

the general public and trade shares on public exchanges). Tend to havebetter management records then privately-held companies (those companieswhere shares are not publicly trades, often owned by a small group of

investors). However, some well-documented cases are known where it isalleged that there has been considerable slippage in corporate governance

on the part of some public companies pets.com (2000), Enron Corporation(2001), One Tel (2001), Sunbeam (2001), Web van (2001), Adelphi (2002),MCI World.com (2002) or Parmalat (2003) are among the most scrutinizedby the media).

Creating investment opportunities for small investor: As opposed toother businesses that require huge capital outlay, investing in shares is opento both the large and small stock investors because a person buyers thenumber of shares they can afford. Therefore the stock exchange provides

the opportunity for small investors to own shares of the same companieslarge investors, and to enjoy similar rates of return(s).

Government capital-rising for development projects: Governments at

various levels may decide to borrow money in order to finance infrastructureprojects such as sewage members of the public buy them, thus loaning

money to the government. The insurance of such bounds with the full faithand credit of the government instead of with collateral, the result is that thegovernment must tax the citizens or otherwise raise additional funds tomake any regular coupon payments and refund the principal when the

bounds mature.

Barometer of the economy: At the exchanges, share prices rise and falldepending, largely, on market forces. Share prices tend to rise or remain

stable when companies and the economy in general show signs of stabilityand growth. An economic depression or financial crisis eventually leads to astock market cash. Therefore the movement of share prices and in generalof the stock indexes can be an indicator of the economy.


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CHAPTER 3

Profile of Karvy

BACKGROUND

Karvy was started by a group of 5 charted accountants in 1979. Thepartners decided to offer other then the audit services, value added services

like corporate advisory services to their clients. The first firm in the group.Karvy consultants limited was interpreted on23rd July 1983, an initial stage it was very small in size. It was started with acapital of Rs. 150000. In a very short period it become the largest register

and transfer agent in India.The business was span off to form a separate joint venture with computer

share of Australia in 2005 karvys foray into stock broking began withmarketing IPOs in 1993. Within a few years, karvy began topping the IPO

procurement league tables and it has consistently maintained its poisonamong the top 5. Karvy was among the first few members of NSE, in 1994and become member of the stock exchange, Mumbai in 2001.Dematerialization of shares gathered place in mid-90s and karvy was in the

forefront educating investors on the advantages of dematerializing theirshares. Today karvy is among the top 5 depositary participant in India.

While the registry business is a 50:50 joint venture with computer share ofAustralia, karvy have equity participation by ICICI ventures limited and

Barings Asia limited, in karvy stock broking limited.

KARVY GROUP COMPANIES

1. Karvy Consultants LimitedAs the flagship company of the karvy group, karvy consultants limited has

always remained at the help of organizational affairs, pioneering businesspolicies, work ethic and channels of progress.


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Now this transferred this business into a joint venture with computer

share limited of Australia, the worlds largest register.

2. Karvy Stock Broking Limited.

Member of national stock exchange (NSE), the Bombay StockExchange (BSE) and the Hyderabad Stock Exchange (HSC).

Karvy Stock Broking Limited, one of the cornerstones of the Karvyedifice flows towards attaining diverse goals of the customer through varied

service. (www.karvydp.com)

3. Distribution of Financial Products.The paradigm shift from pure selling to knowledge based selling

drives the business today with our wide portfolio offerings, we occupy allsegments in the retail financial service industry.

4. Karvy Investor Services Limited.Recognized as a leading merchant banker in the country. We are

registered with SEBI as a category merchant banker.

This reputation was built by capitalizing on opportunities in

corporate consolidations, mergers and acquisitions and corporate restructingwhich have earned as the reputation of a merchant banker.

5. Karvy Computer Share Private Limited.

We have traversed wide spaces to tie up with the worlds largesttransfer agent, the leading Australian company. The company that servicesmore than 75 million shareholders across 7000 corporate clients and makesits presence felt in over 12 countries.

6. Karvy Global Services Limited.

The specialist business process outsourcing unit of the Karvygroup. The legacy of expertise and experience in financial services of the

Karvy group server as well as enter the global arena with the confidence ofbeing able to deliver and deliver well.

7. Karvy Comtrade Limited

At Karvy commodities, we are focused on taking commodities; weare focused on taking commodities trading to new dimensions of reliability

and profitability. We have made commodities trading, on essentially age oldpractice, into a sophisticated and scientific investment option.

8. Karvy Insurance Broking LimitedAt Karvy Insurance Broking Limited. We provide both life and

non-life insurance products to retail individuals, high net-worth clients and
http://www.karvydp.com/http://www.karvydp.com/


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corporate with the opening up of the insurance sector and with a large

number of private players in the business, we are in a position to providetailor made policies for different segments of customers.

9. Karvy Realty and Services (India) Limited.Karvy Reality & services (India) Limited (KRSIL) is engaged in the

business of real estate and property services offering value added property

services and offers individuals and establishments a myriad of options acrossinvestments, financing and advisory services the reality sector.

Karvy Branches and Business Associates

Branches -475 Karvys pan India

branch network

Business Associates- 468 Overseas offices at

Covering- 392 Dubai & new York

1. Punjab:

a) Barnches-16b) BusinessAssociates-

26

2. Rajasthana) Barnches-

10b) BusinessAssociates-20

3. Gujarat

a) Barnches-32

b) BusinessAssociates-34

4.Maharashtra

a) Barnches-49

b) Business

Associates-23

5.

Karnataka/Goa

a) Barnches-49

b) BusinessAssociates-25

6. Keralaa) Barnches-

33b) Business

Associates-53

7. MadhyaPradesh


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a) Barnches-

22b) BusinessAssociates-

30

8. Uttar

Pradesha) Barnches-


9. West

Bengala) Barnches-


10. Orrisa:

a) Barnches-14

b) BusinessAssociates-

12

11. AndhraPradesh:a) Branches-

35b) BusinessAssociates-

76

12. Tamil Nadu

a) Barnches-62

b) BusinessAssociates-

11

13. Other smallerstatus

a) Barnches-

82b) Business

Associates-60

Range of products karvy

Karvy provide online offline and telephonic

support for all the products.

Equity trading

Commodities trading

Debt trading

Mutual funds broking

General insurance

Advisory platform


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Derivatives

Currency trading

Real estate broking

Life insurance

IPOS Fixed deposits and other saving products

Key success factors of karvy

1. Pan India branch network

2. Ability to gross sell3. Diversified products offering

4. Service standards and Branch recall5. Multi channel service delivery

6. Well trained resources


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7. Strong senior management

Quality Objectives of karvy

1. Build in house process that will ensuretransparent and harmonious relationship with its

clients and investors to provide high quality ofservices.


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2. Establish a partner relationship with its investor

service agents and vendors that will help inkeeping its commitments to the customers.

3. Provide high quality of work life for all its

employers and equip them with adequateknowledge and skills so as to respond tocustomers need.

4. Continue to uphold the value of honesty andintegrity and strive to establish on paralleled

standards in business ethics.

VISION

Karvys aspiration of establishing itself on integratorfinancial services company is propelled by a vision

that is shared by the entire work force towards thisend.

Karvy is dedicated itself to:

Having single minded focus on investorsservices.

Establish as a house hold name for financialservices

Set industrial standards

MISSION

Our mission is to be leading preferred serviceprovider to our customers and aim to achieve this

leadership position by building an innovativeenterprising and technology driven organization

which will set the highest standards of service andbusiness ethics.

Quality policy

To achieve and sustain market leadership, karvyshall aim for complete customer satisfaction by

combining its human and technological resources toprovider world class quantity services. In the process

karvy shall strive to meet the exceed customerssatisfaction and set industry standards.


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Achievements

1. Largest independent distributor for financialproducts broker with best corporate desk forcommodity.

2. Broking of the year by blooming UTV financialleadership awards 2011.

3. Largest and broking house in India award2010.

4. Among the top 5 stock brokers.5. Among the top 3 depository participants.6. Among the top 10 investment bankers.7. Indias No.1 register and securities transfer

agent.8. ISO 9002 certified operations by DNV.

9. Adjudged as one the top 50 IT uses India byMIS Asia.


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SWOT AnalysisStrength

Good research team

Dedicated employees

Strong customer relationship

Strong brand name

Wide spread branches and brokers network.

Weakness

Technology need to be upgraded

Not enough advertisement

Opportunity

Growing IPO issues

Positive outlook of people towards financial

products.

Growing consumer awareness about equity

related product.

Threat

Market uncertainty

Emerging economic factors like inflation for

trade business.


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Organization chart

Board of DirectorsMr. C. Parthasarthy

- Chairman

Mr. M. Yugendhar- Managing Director

Mr. M. S. Ramakrishna- Director

Managing

Director

Vice presidentVice president Vice president Vice president

Karvy securities

Ltd

Karvy stock

Broking

Ltd

Karvy

Consultants

Ltd

Karvy

Investors

Service Ltd

Deputy General

Manager

Deputy General

Manager

Deputy General

ManagerDeputy General

Manager

Senior

Manager

Senior

ManagerSenior

Manager

Senior

Manager


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Key personnel at Karvy in Gulbarga city

Siddayya Hiremath - Branch Manager

Ramakanth Panda Dealer (stock broking)

Gouri Shastri Assistant Manager (stock broking)

Gangadhar Avaradhi (stock broking)

Santosh Poddar-Dealor (Commodity)

Dhaneshwari- officer (TIN/PIN Services)

Nagaraj-Officer (TIN/PIN Services)

Laxmikanth-IROS (Distributor)

Shivasharan-IROS (Distributor)

Contact address in Gulbarga City

Karvy Stock Broking Limited.1st Floor Asian Tower

Beside aditya hotel, Jagat.Station main road

Opposite public gardenGulbargaKarnatakaPin code-585103

Tele phone: 08472-262502

Registered OfficeKarvy House

46 Avenue 4, street no.-1Banjara HillsHydrabadAndrapradesh

IndiaTele phone: +91-40-23312454

Fax: +91-40-23311968Email:[email protected]

[email protected]: www.karvy.com
mailto:[email protected]:[email protected]


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CHAPTER 4

Date analysis and interpretation

Table showing Age wise classification of Respondent

Age Group Number of investors Percentage

Lass than 30 years 8 16

30 - 40 years 14 28

40 -50 years 12 24

Above 50 years 16 32

Total 50 100

Interpretation and analysis

From the above table it is observed that 16% ofrespondents in the age group of less than 30 years,28% of respondents in the age group of 30 40years 24% of respondents in the age group of 40

50 years and lastly 32% of respondents in the agegroup of above 50 years with respect to investment

age plays a very important role for investing indifferent investment avenues.

Graph no. 1


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Graph 1: showing age wise classification of

respondents.

05

10

15

20

25

30

35

40

45

50

Less

then 30

Yrs

30-40 yrs 40-50yrs Above

50yrs

No Of Investo

Percentage

Table no- 2Table Title Table showing gender wiseclassification of the respondents.

Gender No. of Respondents Percentage

Male 42 84%

Female 08 16%

Total 50 100

Interpretation and analysisFrom the above table it is dear those 84% of

respondents are male, and 16% of respondents arefemale.

Graph no - 2

Graph - 2 showing Gender wise classification ofthe respondents.


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0

10

20

30

40

50

60

7080

90

Male Female

No ofResponden

Percentage

Table no 3

Table- showing Education qualification wiseclassification of respondents

Education qualification No. of respondents Percentage

Under Graduation 12 24%

Graduation 30 60%

Post graduation 8 16%

Total 50 100


From the above table it is observed that 60%

respondents graduate and 24% under graduatesand 16% wore post graduates. Thus it is theresponsibility of the branch manager to take care of

customers investments for their mutual benefits.

Graph no 3Graph Title Graph showing education

qualification wise classification of respondents.


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0

10

20

30

40

50

60

Under

Graduation

Graduation Post

Graduaion

No of Responde

Percentage

Table 4 Annual Income of Respondents

Occupation No. of Respondents Percentage

Salaried 16 32%

Business 16 32%

Professional 02 04%

Others 16 32%

Total 50 100

From the above table it is observed that 32% ofrespondents were salaried business and others and

04% of respondents were professional.

Graph 4: Graph showing occupation ofrespondents.


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0

5

10

15

20

25

30

35

Salaried Business Professionals Others

No of Respondents Percentage

Table 5 Annual Incomes of Respondents

Annual Income No. of Respondents Percentage

Below 1 lakh 08 16%

1 2 lakh 10 20%

2 lakh 3 lakh 16 32%

Above 3 lakh 16 32%

Total 50 100


From the above table it is found that 32% of therespondents belong to the income group both 2 lakh

3 lakh and above 3 lakh 20% of the respondentsbelong to the income group 1 lakh 2 lakh and 16%


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of respondents belong to the income group below 1

lakh.

Graph 5: Graph showing Annual Income of

Respondents.

0

5

10

15

20

25

30

35

Below

One Lakh

1-2 Lakh 2-3 Lakh Above

3Lakh

No Of Respondents Percentage

Table 6 Investment pattern of Respondents

Investment patter No. of Respondents Percentage

Short term 22 44%

Medium term 10 20%

Long term 18 36%

Total 50 100

Interpretation and analysisFrom the above table it is found that 44% of

respondents are short term investors, 36% of


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respondents are long term investors and 20% of

respondents are medium term investors. Thus wecan infer that the karvy investors prefer more short term investments this the company can educate

above the long term investments.

Graph 6: Graph showing Investment pattern of

respondents

05

10

15

20

25

30

35

40

45

Short

Term

Medium

Term

Long

Term

NO Of

Respondents

Percentage

Table 7Respondents prefer to invest avenues in

Avenues No. of Respondents Percentage

Bank 12 24%

Post office 04 08%

Shares 34 68%

Mutual funds 00 00%


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Total 50 100


From the above table it is found that out 100%, 68%

of respondents prefer shares, 24% of respondentsprefer Bank, 08% of respondents prefer post officeand 0% of respondents prefer mutual fund.

Graph 7: Respondents prefer to invest avenues.

010

20

30

40

50

60

70

Banks Post

Office

Shares Mutual

Funds


Table 8Investment pattern of Respondents

Investment pattern No. of Respondents Percentage

Occasional 32 64%

Regular 18 36%


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Total 50 100

From the above table it is observed that 64% of

respondents occasional investors and 36% of

respondents regular. Thus the company should tarethe responsibility to convert 64% occasionalinvestors to investors.

Graph 8: Graph showing Investment pattern of

respondents.

0

10

20

30

40

50

60

70

Occational Regular

No ofResponden

Percentage

Table 9

Factors influence the respondents while inequity market


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Factors No. of Respondents Percentage

Rate of Interest 06 12%

Risk and return 34 68%

Service 10 20%Time span - -

Total 50 100

Interpretation and analysisFrom the above table it is found that 68% ofrespondents consider risk and return, 20% of

respondents consider service, 12% of respondentsconsider Rate of interest and 0% of respondents

consider time span.

From the above analysis we can interpret that therespondents consider risk and return while investingfor requires as they prefer income for theirinvestments.

Graph 9: Graph showing factors influence the

respondents while investing in equity market.

0

10

20

30

40

5060

70

Rate Of

Interest

Risk & Return Service Time Span

NO Of Respondents Percentage


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Table 10Knowledge of investments Respondents

Respondents knowledge No. of Respondents PercentageBeginner 10 20%

Average 12 24%

Good 26 52%

Very good 2 4%

Total 50 100

Interpretation and analysisThe above table shows that 52 of respondents have

good knowledge of investments, 24% of respondentshave average knowledge of investments, 20% of

respondents are beginnings, and 4% of respondentshave very good knowledge about investments.

Graph 10: Graph showing respondents

knowledge of investments.


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0

10

20

30

4050

60

Beginner Avarage Good Very

Good


Table 11

Mode of collecting information about stockmarket

Mode No. of Respondents Percentage

T.V media 14 28%

News paper 02 O4%

Magazines annual

reports

00 00

Advisor, consultants etc 00 00%

All the above 34 68%

Total 50 100


From the above table it is found that 68% ofrespondent in formed about equities market through

all modes shown in the table 28% of respondentinformed about equities market through T.V media,

o4% of respondents informed about equities marketthrough news paper and both the advisor,


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consultants etc and magazines, annual reports are

not used to informed by respondents about equitiesmarket.

Graph 11: Graph showing mode of collectinginformation about stock market.

Tv Media News Paper

Magzines/Annual Report Advisor/ConsultantsAll of the above

Table 12Opinion of respondents towards investment in

portfolio

Port folio No. of respondents Percentage

Yes 16 32%

No 34 68%

Total 50 100


From the above table it is observed that 32% ofrespondents investing in portfolio and 68% of

respondents not investing in portfolio.

Graph 12: Graph showing opinion ofrespondent towards investment in portfolio.


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0

10

20

30

40

50

60

70

Yes No

No Of

RespondentsPercentage

Table 13

Respondent category in investment

Category No. of Respondents Percentage

Trader 20 40%

Investor 28 56%Speculation 02 04%

Total 50 100

Interpretation and analysisFrom the above it is observed that 56% of

respondents in the category investor 40% of


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respondents in the category Trader and 04% of

respondents in the category speculation.

Graph 13: Graph showing respondent category

in investment

0

10

20

30

40

50

60

Trader Investor Speculation

No Of Respondents

Percentage

Table 14Respondent opinion towards better growinginvestment opportunities

Types of investment No. of respondents Percentage

Stock 22 44%

Mutual fund - -

Commodities 02 04%


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Total 50 100

Interpretation and analysis From the above

table it is found that 52% of respondents preferbetter and growing investment opportunity in all theabove type followed by 44, 0, 04% respondents

prefer stocks mutual fund and commoditiesrespectively. Thus the customers are more

interested towards the type all the above in thetable.

Graph 14: Graph showing respondents opinion

towards better and growing investmentopportunity.

0

10

20

30

40

50

60

Stock Mutual fund Commodities All of the abov


Table 15

Type of trading preferred by respondents

Type of trading No. of respondents Percentage


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Intraday trading 20 40%

Carry forward trading 30 60%

Total 50 100

Interpretation and analysisFrom the above table it is seems that 60% ofrespondents prefer the most carry forward trading

and 40% of respondents prefer table we can inferthat karvy investors are long term traders usuallyprefer long term investments.

Graph 15: Graph showing type of tradingpreferred by respondents.

0

1020

30

40

50

60

Itraday Trading Carry Forword

Trading



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Table 16

Risk tolerance level of respondents

Risk level No. of respondents Percentage

Very high - -Average 20 40%

Moderately high 14 28%

Very low 10 20%

Moderately low 06 12%

Total 50 100

Interpretation and analysisThe above table shows that 40% of respondents are

average risk takers, 28% of respondents aremoderately high risk takers, 20% of respondents are

very low risk takers and 0% of respondents are veryhigh risk takers.

Graph 16: Graph showing risk tolerance level of

respondents.

05

10

15

20

25

30

35

40

Very high Average Moderatly

High

Very Low Moderatly Low



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Table 17

Similarities equity and commodities market

Similarities type No. of respondents Percentage

Yes 08 16%

No 42 84%

Total 50 100

Interpretation and analysisFrom the above table it is observed that 84% of

respondents not find similarities between equity andcommodity and 16% of respondents find similarities.From this we can in for that the respondents are notfind any similarities between equity and commodity.

Graph 17: Graph showing similarities between

equity and commodity market.


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0

10

20

30

40

50

60

70

80

90

Yes No


Table 18Strategies helpful while trading in shares.

Strategies No. of respondents Percentage

Hedging 16 32%

Arbitraging 02 04%

Speculation 06 12%Spreading 08 16%


Total 50 100


From the above table it is found that 36% ofrespondents through all the above strategies are


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helpful while trading in shares followed by 32%,

16%, 12% and 04% respondents in hedging,spreading, speculation and arbitraging respectively.

Graph 18: Graph showing strategies helpfulwhile trading in shares.

0

5

10

15

20

25

30

35

40

Hedging Arbitrage Speculation Spreading All of theabove

East West

Table 19Average investment made by the respondents

every year.

Average investment No. of respondents Percentage

Less than 5000 0 0%

5000 50000 24 48%

50000 100000 18 36%

Above 100000 08 16%

Total 50 100



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The above table shows that 48% of respondents

investment range is between 5000 50000 everyyear 36% of respondents investment range isbetween 50000 100000, 16% of respondents

invest above 100000. Every year and no percent ofrespondents invest less than 5000.

Graph 19: Graph showing average investmentmade by the respondent every year.

05

10

15

20

25

30

35

40

45

50

Less than 5000 5000-50000 50000-1Lakh A bove 1lakh


Table 20

Yearly percentage of yield from respondentcurrent investment

Yield No. of respondents Percentage

Up to 20% 38 76%

20% - 40% 12 24%

40% - 60% 0 0

Above 60% 0 0


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Total 50 100


The above table shows that 76% of respondents

earn up to 76% of returns from their currentinvestment and 24% of respondents earn 20% -40% of returns.

Graph 20: Graph showing yearly percentage of

yield from respondents current investments.

0

1020

30

40

50

60

70

80

Up to 20%20% - 40%40% - 60% Above

60%

No of respondents Percentage

Table 21

Opinion regarding service charges charged bykarvy

Opinion No. of respondents Percentage

Very high 02 04%

High 10 20%


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Moderate 34 68%

Low 04 08%

Total 50 100

Interpretation and analysisThe above table shows that 68% of respondentsopinion is that karvy charges moderate service

charges 20% 0f respondents 20% of respondents tellthat they charge high service charge 08% of themtell that they charge low service charge and 04%them tell that they charge very high service charge.

Graph 21: Graph showing opinion of investors

regarding service charges charged by karvy.

0

10

20

30

40

50

60

70

Very high High Moderate Low


Table 22Satisfaction level for the overall services

provided by the karvy

Satisfaction level No. of respondents Percentage


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Yes 42 84%

Average 04 08%

No 04 08%

Total 50 100

Interpretation and analysisThe above table shows that 84% of respondents aresatisfied with the overall services provided by karvy,8% of respondents are satisfied with their services

and 8% of respondents are not satisfied with theirservices.

Graph 22: Graph showing satisfaction of

respondents.

0

10

20

30

40

50

60

70

8090

Yes Average NO

No Of Respondents Percentage


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CHAPTER -5

Findings, suggestions and Conclusion

Findings1. The company had undertaken stock broking as

a member of NSE and BSE.2. As per age wise classification the respondents

in the age group above 50 years were activelyparticipating in market.

3. Behavior on the secondary market was moredominated by male respondents, male

respondents comprised 84 percent.4. Graduates comprising 60 percent of total

respondents were interested to invest theirmoney in equity market (share).

5. It is found that 32 percent respondents weresalaried, businessman and others participating

in shares market.6. It is found that 16 percent of respondents

were having annual income 2 lakh-3lakh andabove 3 lakh across all age groups.

7. It is found majority of respondents invest forshort-term period.

8. It is found that majority of respondents preferto invest their savings in shares (equity).

9. It is found that 64 percent of respondentswere occasional and 36 percent of

respondents regular investor.10. It is found that 68 percent of

respondents consider the factor risk & returnwhile investing.

11. Majority of respondents had goodknowledge of investments.

12. It is found that majority of respondentswere informed about share market by

television media, news paper, annual report,

advisor and consultants.13. It is found that majority respondents

are not investing in port folio.

14. It is found that majority of respondentsin the category investor.

15. It is found that majority of respondentsinformed about stocks, mutual fund and

commodities.


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16. It is found that most of respondents

preferred carry-forward trading.17. It is found that majority of respondents

were the average risk takers.

18. It is found that most of respondents notfind any similarities between equity andcommodity.

19. Most of respondents found that throughhedging, arbitraging, speculation and

spreading (all the above) are helpful whiletrading in shares.

20. Most of the respondents invested in therange of 5000-50000 rupees every year.

21. Majority of the respondents earned theyield ranging up to 20 percent.

22. Most of respondents opinion is karvycharges Moderate service charge.

23. Most of the respondents satisfied forthe overall services provided by Karvy.

Suggestions

1. The dealers must co-operate with their clientsto carry the relationship for a longer period

2. It is suggested that the dealers must assist inmaking a better portfolio with risk levelacceptance to the investor in terms of market

capitalization.

3. Timely information should be given by thecompany.

4. The company has to consider investors

preference and advice.5. Calls during market hours have to be

improved.6. The company has to concentrate much upon

the maintaining relationship with investors.7. Procedure of opening the demat account must

be simplified so that many number of peoplewill open the account and start investing.


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Conclusion

Karvy Securities Limited. Is one of the best

leading and largest stock broking houses in thecountry? It is a depository with national securitiesLtd, (NSDL) and central depository securitys Ltd(CDSL) and also registered trading member of

the Bombay stock exchange (OTCEI) and thecounter exchange of India, it has a listed

company. It has shown its efficiency in stockbroking and consistency on the performance.

Through there is stiff competition and frequentchanges in the market has sustained its goodperformance. This can easily known by theprimary data collected through field survey and

its goodwill in the market. Trading deliverysettlement system with adequate protection to

investors


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The study can be conclude that the company

services have good image in market because ithas passed investor are not left to perceive aboutservices.

BIBLIOGRAPHY

Books referred:-

Investment management(11th edition)-V K Bhalla

Financial market and services-E Gordon and K.Natrrajan

Derivative market- Dealers module work book (NCFM)

Financial market- A Beginners module work book (NCFM)


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WEBSITE:-

www.bseindia.com

www.nseindia.com www.karvy.com

www.google.com

ANNEXURE

QuestionnaireDear Sir/Madam,

I am Siddayya Hiremath, pursuing myMBA 4th semester from GUrukul Institute of

Management Sikkim Manipal University, under thecurriculum of which I am entitled to do a project on
http://www.bseindia.com/http://www.nseindia.com/http://www.karvy.com/http://www.google.com/http://www.bseindia.com/http://www.nseindia.com/http://www.karvy.com/http://www.google.com/


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A Study on Investors Opportunities in Equity

Market with Special reference to Karvy Gulbarga.Hence I request you to fill the questionnaire forwhich I will be thankful to you.

Personal Information

Name:Address:

1. Age group of investor

Less than 30 years

30 40 years

40 50 years

Above 50 years

2. Gender Male

Female

3. Education qualification

Under graduation

Graduation

Post-graduation

4. Occupation

Salaried

Business Professional

Others

5. Annual Income

Below 1 lakh

1 lakh 2 lakh

2 lakh 3 lakh

Above 3 lakh

6. What is your investment pattern?

Short term Medium term

Long term

7. Where do you prefer to invest your savings?

Bank


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Post-office

Shares

Mutual fund

8. How often do you invest? Occasional

Regular

9. While investing which of the below factors doyou consider?

Rate of interest

Risk & Return

Service

Time Span

10. How do you rate yourself on knowledgeof investments?

Beginner

Average

Good

Very good

11. How do you keep informed yourself

about the stock market?

Television media

News paper

Magazines, annual repots Advisor, consultants etc

All the above

12. Do you invest port folio or not?

Yes

No

13. Do you belong to below category?

Trader

Investor

Speculator

14. Which of the following you find better &growing investment opportunity?

Stock

Mutual fund

Commodities

All the above


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15. Which type of trading do you prefer?

Intraday trading

Carry forward trading

16. Do you find the similarities between

equity and commodity market?

Yes

No

If Yes with respect to

Price movements

Information ( importer &

exporter)

Seasonal reports

All the above

17. What strategies you think it is helpfulwhile trading in shares?

Hedging

Arbitraging

Speculation

Spreading

All the above

18. What is your risk tolerance level?

Very high Average

Moderately high

Very low

Moderately low

19. On an average how much do you investevery year?

Less than 5000

5000 50000

50000 100000

Above 100000

20. What is the yearly percentage of yieldthat you are getting from your current

investment

Up to 20%

20 40%

40 60%


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Above 60%

21. What is your opinion regarding service

charges charged by Karvy?

Very high High

Moderate

Low

22. Are you satisfied with the overall

services provided by Karvy?

Yes

Average

No

Respondent Signature

Documents

Equity Market Project