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AN ANALYTICAL STUDY OF INVESTORS OF INDIA

INFOLINE LIMITED IN AMRAVATI CITY

Submitted By

PRITESH GAJANAN PATKAR

(M.B.A. Programm 2011-2013)

Under the Guidance of

Prof. SAGAR S. MITKARI

To

DEPARTMENT OF MANAGEMENT STUDIES

Prof. Ram Meghe Institute of Technology & Research, Badnera,

Amravati.

Sant Gadge Baba Amravati University, Amravati

(2012-2013)


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CONTENTS

Sr. No. Topics

1 Introduction

2 Research Problem

3 Research Objectives

4 Scope of Research

5 Research Methodology

I. Data collection

Sampling Unit

Extent

Sampling Technique

Sample Size

II. Universe

III. Data Analysis

6 Limitations

7 Chapterisation

8 Reference


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INTRODUCTION

Every modern economy is based on a sound financial system .A financialsystem is a set of institutional arrangements through which financial surpluses are

mobilized from the units generating surplus income and transferring them to the others

in need of them. The activities include production, distribution, exchange and holding

of financial assets/instruments of different kinds by financial institutions, banks and

other intermediaries of the market.

The financial markets have two major components; they are money market and capital

market.

Financial Markets

Money Market Capital Market

Securities Market Other forms of Lending

And Borrowing

New issue (Primary) Stock (Secondary)

Market

MONEY MARKET

The Money Market refers to the market where borrowers and lenders exchange

short-term funds to solve their liquidity needs. The money market is better known as a

place for large institutions and government to manage their short-term cash needs.

However, individual investors have access to the market through a variety of different

securities. The money market is a subsection of the fixed income market.
http://www.investopedia.com/terms/f/fixed-incomesecurity.asphttp://www.investopedia.com/terms/f/fixed-incomesecurity.asp


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CAPITAL MARKET

A market in which individuals and institutions trade financial securities.

Organizations/institutions in the public and private sectors also often sell securities on

the capital markets in order to raise funds. Thus, this type of market is composed of

both the primary and secondary markets.

Both the stock and bond markets are parts of the capital markets. For example,

when a company conducts an IPO, it is tapping the investing public for capital and is

therefore using the capital markets. This is also true when a country's government

issues Treasury bonds in the bond market to fund its spending initiatives.

SECURITIES MARKET

It refers to the markets for those financial instruments/claims/obligations that

are commonly and readily transferable by sale. It has two inter-dependent and

inseparable segments, the new issues (primary) market and the stock (secondary)

market. Securities market is an economic institute within which take place sale and

purchase transactions of securities between subjects of economy on the base of demand

and supply. Also we can say that securities market is a system of interconnection

between all participants (professional and nonprofessional) that provides effective

conditions: to buy and sell securities, and also

To attract new capital by means of issuance new security(securitization of debt)

To transfer real asset into financial asset.

To invest money for short or long term periods with the aim of deriving profit.

SECONDARY MARKET

The secondary market enables those who hold securities to adjust their holdings

in response to changes in their assessment of risk and return. A market where investors

purchase securities or assets from other investors, rather than from issuing companies


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themselves. The national exchanges - such as the New York Stock Exchange and the

NASDAQ are secondary markets.

Secondary markets exist for other securities as well, such as when funds,

investment banks, or entities such as Fannie Mae purchase mortgages from issuing

lenders. In any secondary market trade, the cash proceeds go to an investor rather than

to the underlying company/entity directly.

A newly issued IPO will be considered a primary market trade when the shares are first

purchased by investors directly from the underwriting investment bank; after that any

shares traded will be on the secondary market, between investors themselves. In the

primary market prices are often set beforehand, whereas in the secondary market only

basic forces like supply and demand determine the price of the security.

PRIMARY MARKET

A market that issues new securities on an exchange. Companies, governments

and other groups obtain financing through debt or equity based securities. Primary

markets are facilitated by underwriting groups, which consist of investment banks that

will set a beginning price range for a given security and then oversee its sale directly to

investors.

The primary markets are where investors can get first crack at a new security

issuance. The issuing company or group receives cash proceeds from the sale, which is

then used to fund operations or expand the business. Exchanges have varying levels of

requirements which must be met before a security can be sold.

Once the initial sale is complete, further trading is said to conduct on the

secondary market, which is where the bulk of exchange trading occurs each day.

Primary markets can see increased volatility over secondary markets because it is

difficult to accurately gauge investor demand for a new security until several days of

trading have occurred.


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About India infoline Ltd.India Inofline Group

The India Infoline group, comprising the holding company, India Infoline Limited and

its wholly-owned subsidiaries, straddle the entire financial services space with offerings

ranging from Equity research, Equities and derivatives trading, Commodities trading,

Portfolio Management Services, Mutual Funds, Life Insurance, Fixed deposits, Gold

bonds and other small savings instruments to loan products and Investment banking.

India Infoline also owns and manages the websites http://www.indiainfoline.com

and http://www.5paisa.com/

India Infoline LtdThe Securities and Exchange Board of India authorized Portfolio Manager; it offers

Portfolio Management Services to clients. These services are offered to clients as different

schemes, which are based on differing investment strategies made to reflect the varied risk-

return preferences of clients.

India Infoline Media and Research Services Limited.

The content services represent a strong support that drives the broking, commodities,

mutual fund and portfolio management services businesses.

It undertakes equities research which is acknowledged by none other than Forbes as 'Best

of the Web' and 'a must read for investors in Asia'. India Infoline's research is available

not just over the internet but also on international wire services like Bloomberg (Code:

IILL), Thomson First Call and Internet Securities where India Infoline is amongst the most

read Indian brokers.

India Infoline Commodities Limited.

India Infoline Commodities Pvt Limited is engaged in the business of commodities

broking. We enjoy memberships with the MCX and NCDEX, two leading Indian

commodities exchanges, and recently acquired membership of DGCX. We have a multi-

channel delivery model, making it among the select few to offer online as well as offline

trading facilities.
http://www.indiainfoline.com/http://www.5paisa.com/http://www.indiainfoline.com/http://www.5paisa.com/


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India Infoline Marketing & Services

India Infoline Marketing and Services Limited is the holding company of India Infoline

Insurance Services Limited and India Infoline Insurance Brokers Limited.

(a) India Infoline Insurance Services Limited is a registered Corporate Agent with the

Insurance Regulatory and Development Authority (IRDA). It is the largest Corporate Agent

for ICICI Prudential Life Insurance Co Limited. India Infoline was the first

corporate agent to get licensed by IRDA in early 2001.

(a) India Infoline Distribution Company Limited (distribution of retail loan products)

(b) Money line Credit Limited (consumer finance)

(c) India Infoline Housing Finance Limited (housing finance)

India Infoline (Asia) Pte Limited

IIFL (Asia) Pte Limited is wholly owned subsidiary which has been incorporated in

Singapore to pursue financial sector activities in other Asian markets. Further to obtaining

the necessary regulatory approvals, the company has been initially capitalized at 1 million

Singapore dollars.

India Infoline.com Distribution Services Ltd.

They have developed a retail distribution infrastructure (Investor Points) to support our

online presence. This network, spread over 60 locations, is engaged in the distribution of

financial products including fixed deposits, GoI Relief bonds, insurance, mutual funds and

IPO's. These Investor Points help us service our broking customers.

Money Tree Consultancy Services

(MTCS) Is a group company of India Infoline Ltd., focusing distribution on Home Loans,

Personal Loans, Credit Cards and Non Life Insurance. MTCS extends the distribution

reach of financial services providers by using alternate channels like the Internet,

telephone, wireless, sales force and events.

Definition of an investor.

An investor is someone who allocates capital with the expectation of a financial


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return. The types of investments include- equity,debt, securities, real estate, currency

commodity, derivatives such as put and call options, etc.

This definition makes no distinction between those in the primary and secondary

markets. That is, someone who provides a business with capital and someone who buys a

stock are both investors. Since those in the secondary market are considered investors,

speculators are also investors. According to this definition there is no difference.

An investor puts money behind an idea, a project or a company with the hope of

making a financial return. The problem facing entrepreneurs is that there as many

different types of investors as there are investors.

Actually, its not quite as bad as that, but there is a wide spectrum. To understand

that, lets take a very quick dive into the concept of risk/reward.

Research Problem

Research problem allows the researcher to focused on how, what, which, when,

why, where question needed to guide the information or research objectives. All the efforts

time and money spent to execute research will waste if reach problem are misunderstood.
http://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Bond_(finance)


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In a current scenario various investments and saving alternative are available like equity

stock investment. It is more difficult for customer who is best for them and suited for them.

This study is helpful to find out equity is beneficial to various types of investor and wanted

to see, how equity market helpful to investors and to minimize risk of investor to study the

perception of investor and to solve this problem. It is also difficult to take decision How

much to invest in stock market.

Research objective

To study the various investment avenues of Stock market

To find out the preference given by people to Stock market

To find out awareness of the people about the Stock market

To study the customer perception towards the Stock market

Scope of Research

The study revels and analyzes various investment patterns of people and the popularity

of different products. (Fund Investment, Stock market, Insurance,Mutual funds and other

securities) provided by the financial institution India Infoline limited for investment.

Research Methodology

The research is the systematic method of collection, recording from in the form of a

numerical data relevant to the formulating at problem and arriving at a certain conclusion

over the problem bases on the collect data. The research can be defined as logical and

systematic means or techniques to discover the new facts, analysis their sequence,

interrelationship and casual explanation which were derived with appropriate theoretical

frame of reference develop new scientific tools and concept theories which would facilitate

reliable and valid study on human behavior.

Data collection

Primary data:Data means information which is required in any research to reach into

the result and these data can be acquired by or collected through the interview or through

the survey it is called primary data.


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a. Questionnaire

b. Interview

c. Observation

Secondary data: secondary data are those which have been already collected by

someone else and which has been pass through statistical process. The secondary data will

be collected through:

a. Websites

b. Books

c. Journals

d. News papers

e. Magazines

Sampling unit

Sample unit will be the investors of India Infoline Ltd. in Amravati city.

Extent

It is extent for Amravati city

Sampling technique

For the selection of samples in any of the research the researcher has to have a

proper technique by means of which can he get the fruitful result so, for this research the

sampling technique will be Non-Probability Convenience Sampling. Random sampling,

Judgment sampling Quota sampling, probability sampling.

Sample size

The sample size for this study will be 100 investors of the Amravati city.

Data analysis


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Analysis of data is a process of inspecting, cleaning transforming and modeling data

with goal of highlighting useful information, conclusion and suggestion, and supporting

decision making. Data analysis focuses on knowledge discovery for predictive rather than

descriptive purposes.

Limitations

The research is limited to academic purpose only.

The study will be conducted only with in the universe of Amravati city.

The area of study will be restricted to stock market investment only.

Time and money may be constraint in research on some event.

Chapterization

1. Introduction

2. Research Objective

3. Research methodology

4. Data analysis & Interpretation

5. Conclusion and observation

6. Suggestion and recommendation

7. Bibliography

Reference: (for synopsis)

Website- http://www.indiainfoline.com

Book: Research Methodology, methods and techniques. C.R. KOTHARI.
http://www.indiainfoline.com/http://www.indiainfoline.com/


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www.sebi.com

Questionnaires.
http://www.sebi.com/http://www.sebi.com/

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