RESEARCH PROJECTON

“INVESTORS PERCEPTION OF COMMODITY FUTURES” (Conducted for Pristine Angel Broking Ltd)

Submitted in partial fulfillment of the requirement for MBA Degree of Sikkim Manipal University

Submitted by Patel Hitesh H

Register Number 520782181

INSTITUTE OF BUSINESS MANAGAMENT & RESEARCH 8/182 , Sunrise park, Nr. Asia School, Drive-in-Road AHMEDABAD - 380054

GUIDE CERTIFICATE

I hereby declare that the research work embodied in this dissertation entitled “investors perception of commodity futures” has been undertaken and completed by Patel Hitesh H under my guidance and supervision.

I also certify that he has fulfilled all the requirements under the covenant governing the submission of dissertation to the SIKKIM MANIPAL UNIVERSITY for the award of MBA Degree.

Place: Ahmedabad Dr,Ramkumar baliyanDate: Internal guide, IBMR

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ACKNOWLEDGEMENT

I take this opportunity to extend my sincere gratitude to the respondents who gave all the support and had been cooperative in providing all the valuable required information without which I would not have completed my report.

I would also like to thank Dr.Ramkumar baliyandirector, internal guide, institute of business management, and Mr. Paresh patel( Angel broking) for the constant guidance, encouragement and motivation they extended throughout the study.

I also thank my parents and friends for their co-operation, support and encouragement extended throughout the study.

CONTANTS

SR.NO

TOPIC PAGE NO.

1. INTRODUCTION TO THE TOPIC The Indian financial system. Guidelines by the RBE pertaining to

commodity future trading. Security and exchange board of India. SEBE guidelines for commodity futures

trading.

6 -17 6

11 13

15

2. RESEARCH DESIGN Objective of the study. Research methodology.

18-21 19 21

3. COMMODITY FUTURES The history of trading Definition of commodity. Definition of commodity future. Growth of commodity futures in India. Commodity trading affect the economy. Investor’s choice. The role of the exchange in future

trading.

22-26 22 23 23 24 25 25

26

4. RISK ASSCIATED WITH COMMODITY FUTURES TRADING.

27

5. THE VARIOUS RISK MANAGEMENT TECHINQUES USED IN COMMODITY FUTURES TRADING.

28-29

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SR.NO

TOPIC PAGE NO.

6. COMPANY PROFILE Introduction. Angel group membership. Location. Angel intensive research process.

30-33 30 31 32 33

7.

SWOT ANALYSIS 34

8.

DATA ANALYSIS Angel Services. Guideline for risk management. Angel Product.

35-52 35 43 47

9. FINDING AND INTRERPRETATION 53-73

10. CONCLUSION 74-75

11. APPENDIX Questionnaire

76-80

12. BIBLIOGRAPHY 81

[5] INTRODUCTION TO THE TOPIC

THE INDIAN FINANCIAL SYSTEM

The Indian financial system consists of many institutions, instruments and markets. Financial and cheques, to the more exotic futures swaps of high finance.

The Indian financial system is broadly classified into 2 broad Groups:-

1. Organized Sector

2. Unorganized Sector

1. ORGANISED SECTOR:-

The organized sector consists of: -

i. Financial institutions:-

a) Regulatory:-

The regulatory institutions are the ones, which forms the regulation and control the Indian financial system. The Reserve Bank of India is the regulatory body, which regulates, guides controls and promotes the IFS.

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b) Financial intermediaries:-

They are the intermediaries who intermediate between the saver and investors. They lend money as well mobilizes savings; their liabilities are towards ultimate savers, while their assets are from the investors or borrowers.

They can be further classified into:-

Banking: -All banking institutions are intermediaries.

Non-Banking: -Some Non-Banking institutions also act as intermediaries, and when they do so they are known as Non-Banking Financial Intermediaries. UTI, LIC, GIC & NABARD are some of the NBFC’s in India.

c) Non intermediaries:-

Non-intermediaries institutions do the loan business but their resources are not directly obtained from the saver.

ii. Financial Markets:-

Financial Markets are the centers or arrangements that provide facilities for buying & selling of financial claims and services.

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Financial markets can be classified into: -

Organized markets:- These markets comprise of corporations, financial institutions, individuals and governments who trade in these markets either directly or indirectly through brokers on organized exchanges or offices.

Unorganized markets:-

The financial transactions, which take place outside the well-established exchanges or without systematic and orderly structure or arrangements constitutes the unorganized markets. They generally refer to the markets in the villages.

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The financial syst The Financial System

___________________________|__________________________ | |

Organized sector Unorganized sector

| |__________|______________________________________| | | |

Financial market

Services Institution Instrument

| | |_____

Organized Unorganized Primary Secondary

__________|_____________ __________|____________ | | | | |

Capital market

Money market

Short term

Medium term

Long term

Money lender

Land lords

Pawn brokers

Traders

Indigenous

Other

Non-intermediaries

Intermediaries

Regulatory

iii. Financial instruments:-

Financial instruments constitute of securities, assets and claims. Financial securities are classified as primary and secondary securities.

The primary securities are issued by the companies directly to the ultimate savers as ordinary shares and debentures.

While the secondary securities are issued by the financial intermediaries to the ultimate savers as bank deposits, insurance policies so and on.

iv. Financial services:-

The term financial service in a broad sense means “Mobilizing and allocating savings”. Thus, it can also be offered as a process by which funds are mobilized from a large number of savers and make them available to all those who are in need of it, particularly to the corporate customers.

2. THE UNORGANIZED SECTOR:-

The unorganized financial system comprises of relatively less controlled money lenders, indigenous bankers, lending pawn brokers, land lords, traders etc. This part of the financial system is not directly controlled by RBI..

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GUIDELINES BY THE RBI PERTAINING TO COMMODITY FUTURE TRADING

The guidelines are: -These guidelines cover the Indian entities that are exposed to commodity price risk.

Name and address of the organization:

1. A brief description of the hedging strategy proposed:- Description of business activity and nature of risk. Instruments proposed to be used for hedging. Exchanges and brokers through whom the risk is

proposed to be hedged and credit lines proposed to be available.

The name and address of the regulatory authority in the country concerned may also be given.

Size/average tenure of exposure/total turnover in a year expected.

2. Copy of the risk management policy approved by the Board of Directors covering:-

Risk identification Risk measurements Guidelines and procedures to be followed with respect to revaluation/monitoring of positions. Names and designations of the officials authorized to undertake transactions and limits.

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3. Any other relevant information:-

The authorized dealers will forward the application to Reserve Bank along with copy of the Memorandum on the risk management policy placed before the Board of Directors with specific reference to hedging of commodity price exposure. .

i All standard exchanges traded futures will be permitted

ii. Tenure of exposure shall be limited to 6 months. Tenure beyond 6 months would require Reserve Bank’s specificapproval.

iii. Corporate who wish to hedge commodity price exposure shall have to ensure that there are no restrictions on import/export of the commodity hedged under the Exim policy in force.

After grant of approval by Reserve Bank, the corporate concerned should negotiate with off-shore exchange broker subject, inter alia, to the following:-

Brokers must be clearing members of the exchanges, with good financial track record.

Trading will only be in standard exchange- traded futures contract/options .

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SECURITIES AND EXCHANGE BOARD OF INDIA

SEBI was setup in April 12,1988. To start with, SEBI was set up as a non-statutory body.

It took 4 years for the government to bring about a separate legislation in the name of securities and exchange board of India Act, 1992, conferring statutory powers over practically all aspects of capital market operations.

Objectives of SEBI

To protect the interest of investors so that there is a steady flow of savings into the capital market.

To regulate the securities market and ensure fair practices by the issuers of securities, so that they can

raise resources at minimum cost.

To provide efficient services by brokers, merchant bankers and the other intermediaries, so that theybecome competitive and professional.

Functions of SEBI

Sec 11 of the SEBI act specifies the functions as follows:-

Regulation of the stock exchange and self-regulatory organizations.

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Registration and regulation of stock brokers, sub-brokers, registrar to all issue, merchant bankers,

underwriters, portfolio managers and such other intermediaries who are associated with securities market.

Regulation and registration of the working of collective investment schemes including Mutual funds.

Prohibition of fraudulent and unfair trade practices relating to security market.

Prohibit insider trading in securities.

Regulation substantial acquisitions of shares and take over of companies.

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SEBI GUIDELINES FOR COMMODITY FUTURES TRADING

There are many regulatory authorities, which are monitoring commodity futures trading, one of them is SEBI. The following Report is one of the regulatory frameworks for the commodity futures trading.

The following were the recommendations:-

I) Participation of Securities Brokers in Commodity Futures Market

The committee was of the unanimous view that participation of intermediaries like securities brokers in the commodity futures market is welcome as it could inter-alia increase the number of quality players infuse healthy competition, boost trading volumes in commodities and in turn provide impetus to the overall growth of the commodity market.

Since the commodity market falls under the regulatory purview of a separate regulatory authority viz., Forward Market Commission, to ensure effective regulatory oversight by the Forward Market Commission, and to avoid any possible regulatory overlap, the pre-condition for such entry by intending participating securities brokers in the commodity futures market would be through as separate legal entity, either subsidiary or otherwise. Such entity should conform from time to time to the regulatory prescription of Forward Market Commission, with reference to capital adequacy, net worth, membership fee, margins, etc.

The committee took note of the fact that the existing provisions of the Securities Contract (Regulation)Rules 1957 forbid a person to be elected as a member of a recognized stock exchange if he is engaged as principal on employee in any business other than that of securities, except as a broker or agent not involving any personal financial liability. The Committee recommended that the above provisions in the Securities Contract (Regulations) Rules be removed/amended suitably to facilitate securities

brokers participation/engagement in commodity futures.

An important felt need was the necessity to improve market awareness of trading and contracts in commodities. The committee there for recommendation the forward market commission take appropriate initiatives in training the market participants.

II) Risk containment measures

In the background of the Forward Market Commission’s report on risk containment measures currently obtaining in commodity markets and the committee’s recommendation to permit security brokers’

participation in commodities markets only through a separate legal entity, the committee considers that ensuring strict compliance of the regulatory prescriptions like net worth, capital adequacy, margins, exposure norms, etc., by the respective market regulators, and due oversight would be an adequate safeguard to ensure that the risks are not transmitted from one market to the other. [16]

|||) Utilization of existing infrastructure of stock exchanges On the issue of convergence/integration the securities

market and commodities market, that is of allowing stock exchanges to trade in commodity derivatives and vice versa, the committee was of the view that in the current statutory and regulatory framework existence of two separate and established regulators, the issue of integration of the two markets would require detailed examination, particularly for the purpose of defining clearly the scope of regulatory purview and responsibility. Also, given the concerns raised by a section of members that such integration may lead to further fragmentation of volumes and liquidity in the nascent commodity markets, the committee was of the view that the issue of markets could be taken up for consideration at a future date as the two markets mature further.

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RESEARCH DESIGN

INTRODUCTION

In the present global economic scenario, due to various factors such as inflation, political factors, natural factors, the variations in prices of all commodities are a natural phenomenon. So, from the point of the cultivators of the commodity (in case of agricultural products) or dealers in the metals, there is a genuine need for them, an instrument with which they can hedge their risks. Thus, a commodity future is one of the most important derivative securities. With this they will be able to reduce risks.

Consequently, the speculators who play an important part, in determining the price also come in the picture. Thus with the help of their speculative expertise, it can also be a veryLucrative investment opportunity. Through this, project, an attempt is made to prove that commodity futures can be used effectively as a risk reduction instrument and also as a very good investment opportunity.

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OBJECTIVES OF THE STUDY

The objective of this study is mainly to prove that commodity futures can be used as a risk reduction instrument and also as an investment opportunity. In order to do so, the following are the sub-objectives.

1. To study the various analysis tools used to make price movement predictions.

2. To study the growth of commodity futures trading.

3. To study the perception of investors of commodity futures (questionnaire).

OPERATIONAL DEFINITIONS

Short sellingSelling first is known better as ‘shorting’ or ‘short selling’. In futures trading, since one is taking a future delivery, its just as easy to sell first and then buy later. To offset the obligation to deliver, all one needs to do is to buy back the Contract prior to the expiration of the Contract.

MarginA margin refers to a good faith deposit made by the person who wants to buy or sell a Contract in a futures exchange. It is a small percentage of the value of the underling

commodity represented by the Contract, generally in the neighborhood of 2 to 10%.

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LeverageLeverage is the ability to buy or sell $100,000 of a commodity with a $5000 security deposit, so that small price changes can result in huge profits or losses.

Maintenance marginMaintenance margin is the amount which must be maintained in ones account as long as the position is active.

Margin callIf the equity balance in the account falls bellow the maintenance margin level, due to adverse market movement, the account holder will be issued a margin call.

LotA lot refers to the number of Contract that one wishes to buy or sell.

TickA tick refers to the minimum price fluctuation, is a function of how the prices are quoted and set by the exchange.

FloatFloat refers to the concept, when an investor who has taken a position, but does not want to liquidate his position at close of the market.

Limit up/down

It refers to the maximum amount that the market can move above or below the previous day’s close in a single trading session. If the price moves up it is known an ‘limit up’, when the price moves down its is known as ‘limit down’.

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RESEARCH METHODOLOGY

In this study primary analytical research method is used, which includes questionnaire, tabulation analysis. This is one of the most important methods.

SOURCES OF DATAThe various sources of data are:1. Primary Sources, which includes questionnaire, and a survey.

TOOLS FOR DATA COLLECTIONThe questionnaire is the tool used for data collection.

ANALYSIS AND INTERPRETATIONThe various tools for analysis used are graphs, charts, percentage growth, secondary data. [21] COMMODITY FUTURES

THE HISTORY OF TRADING

Although the first recorded instance of future tradingOccurred with rice in 17th century Japan, there is some evidence that there may also have been rice futures traded in China as long as 6000 years ago.

Futures trading are a natural outgrowth of the problems of maintaining a year-round supply of seasonal products like agricultural crops. In Japan, merchant stored rice in wareh-ouses for future use. In order to raise cash, warehouse holders sold receipts against the stored rice. These were known as “rice tickets”. Eventually, such rice tickets became accepted as a kind of general commercial currency. Rulescame into being to standardize the trading in rice tickets.

In the United States, futures trading started in the grain markets in the middle of the 19th century. The Chicago Board of Trade was established in1848. In the 1870’s and 1880’s the New York coffee, cotton and produce exchanges were born. Today there are ten commodity exchanges in the United States. The largest are the Chicago Board of Trade the Chicago Mercantile Exchange, the New York MercantileExchange, New York Commodity Exchange and the New York Coffee, Sugar and Cocoa Exchange.

Worldwide there are major futures trading exchanges in over 20 countries including Canada, England, France, Singapore, Japan, Australia and New Zealand. The products traded range form agricultural staples like Corn and Wheat to Red Beans and Rubber. [22]

What is a commodity?

Corn coffee silver soybean

Commodities are agreements to buy and sell virtually anything except, for some reason, onions. The primary commodities that are traded are oil, gold and agricultural products. Since no one really wants to transport all those heavy materials, what is actually traded are commodities futures contracts or options. These are agreements to buy or sell at an agreed upon price on a specific date.

What is a commodity future?

Commodities futures, or futures contracts, are an agreement to buy or sell a commodity at a specific date in the future at a specific price. Just like the price of bananas at the

grocery store, the prices of commodities can change on a weekly or even daily basis. If the price goes up, the buyer of the futures contract makes money, because he gets the product at the lower, agreed-upon price and can now sell it at the higher, market price. If the price goes down, the seller makes money, because he can buy the commodity at the lower market price, and sell it to the buyer at the higher, agreed-upon price.

Of course, if commodities traders had to actually deliver the product, very few people would do it. Instead, they can fulfill the contract by delivering proof that the product is at the warehouse by paying the cash difference or by providing another contract at the market price.

Futures contracts perform two important functions : price discovery and hedging of price risk in a commodity. In international bourses traders can also use financial instruments like call and put options, not yet allowed in India. Futures contracts are useful for the producer because he can get an idea of the price likely to prevail and thereby help them quote a realistic price and hedge risk.

Growth of commodity futures in India

Investment in India has traditionally meant property, gold and bank deposits. The more risks taking investors choose equity trading. But commodity trading never forms a part of conventional investment instruments. As a matter of factFuture trading in commodities was banned in India in mid1960’s due to excessive speculation.

India has three national level multi commodity exchanges with electronic trading and settlement systems. The National Commodity and Derivative Exchange (NCDEX). The MultiCommodity Exchange of India (MCX) and the National Multi Commodity Exchange of India (NMCE) the National Board of [24]

Trading in Derivatives (NBOT), offers trading on a national level, but is not completely online.

Commodity trading affect the economy

Commodity trading impacts the economy by making public the analysts forecasts of future prices of the most important market goods. For example, one of the most widely watched commodities is oil. The price of oil changes daily, which has an impact on every good and service produced in the U.S economy. As traders take into account all information regarding oil supply and demand, as well as geopolitical considerations, this affects oil prices. It is these assumptions behind oil prices that affect the economy so significantly.

Investor’s choice

The futures market in commodities offers both cash and delivery- based settlement. Investors can choose between the two. If the buyer chooses to take delivery of the commodity, a transferable receipt from the warehouse where goods are stored is issued in favour of the buyer. On producing this receipt, the buyer can claim the commodity from the warehouse. All open contracts not intended for delivery are cash settled. While speculators and arbitrageurs generally prefer cash settlement, commodity stock list and wholesalers go for delivery. The options to square of the

deal or to take delivery can be changed before the last date of contract expiry. In the case of delivery- based trades, the margin rises to 20-25% of the contract value and the seller is required to pay sales tax on the transaction.

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The Role of the exchange in futures Trading.

1) Risk Transfer:-In a futures transaction , risk is inherent part of doingbusiness. The exchange provides a setting where risk can be transferred from the hedgers to the speculators.

2) Liquidity:-If risk is to be transferred efficiently, there must be a large group of individuals ready to buy or sell. When a hedger wants to sell futures contracts to protect his business position, he needs to know whether he can effect the transaction quickly. The futures exchange brings together a large number of speculators, thus making quick transaction possible.

3) Standardization:-The exchange writes the specifications for each contract, setting standards of grading, measurement methods of transfer, and times of delivery. By standardizing the contracts in this manner, the exchange opens the futures market to almost anyone willing to hedge risk. In the pits, then, the auction process is facilitated because only the price must be negotiated.

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RISK ASSOCIATED WITH COMMODITY FUTURES TRADING

The different types of risks in Commodity Futures

TYPES OF RISK

OPERATIONAL RISK MARKET RISK LIQUIDITY RISK

TYPES OF RISK

OPERATIONAL RISK MARKET RISK LIQUIDITY RISK

Operational risk:-The risk that, errors (or fraud) may occur in carrying out operations, in placing orders, making payments or accounting for them.

Liquidity risk:-Although commodity futures markets are liquid mostly, in few adverse situations, a person who has a position in themarket, may not be able to liquidate his position.

Market risk:-It is the risk of adverse changes in the market price of a commodity future.

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The various risk management techniques used in Commodity Futures Trading

Considering the risks discussed previously, various risk management techniques are used in order tominimize the losses.

There are mainly 3 techniques, they are

1. Averaging2. Switching3. Locking

Averaging:-Averaging is a technique used when there is an existing position, and the price moves adversely. And then at that particular price, enter into a similar new position. Then take the average of these 2 prices. And when the price moves to that price liquidate the position.

Switching:-Switching is yet another risk management technique, when, there is an existing position, and the prices move adversely

and gives all indication that it will go in the same direction for still some while. Then we have to liquidate the first position and enter a new and opposite position at the same price.

Locking:-Locking is yet another risk management technique, where, when there is an existing position, and the prices move adversely and give an indication that it will move in that

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direction, but it will come back to its original position. Here two processes are involved ‘locking and ‘unlocking’.

It is the process where there is an existing position, and the price moves adversely, we ‘lock’ by entering into a new opposite position. And then when the second price reaches a point where it will bounce back, we ‘unlock’ by liquidating the second position and book profits, and then finally when the price reaches somewhere near the first position, liquidate the position, whereby we can minimize the loss.

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COMPANY PROFILE

INTRODUCTION

Angel broking trust with excellence in customer relation began more than 20 year ago. Today Angel broking has emerged as premium investment sub-broker and wealth management house with an absolute focus on real business and commitment to provides real value for money to all its clients.

Promoted by MR.DINESH THAKKAR ,Angel started in 1987

As sub broker is a present across the country provide equity investment solution to individual clients through multiple channel retail, phone , trade and internet platform.

The commitment to provides world - class broking service to the Indian investor and a customer centric work culture has led to several innovation in the areas of the technical, quality management , HR process giving Angel unique work culture and edge over the players in the industry. Clients value Angel of its strong research led investment ideas superior clients service track record and exceptional execution skill. [30]

ANGEL GROUP MEMBERSHIPS

BSE NSE NCDEX AND MCX COMMOITIES.

Angel has the largest NO of NSE registered Sub – brokers.

We have the third largest volume on BSE.

ANGEL WAS AWARED THE CONVETED “ MAJOR VOLUME DRIVES.”

TROPHY FOR 3 CONSECUTIVE YEAR. 2004 – 2005 2005 – 2006 2006 – 2007

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LOCATION

In a span of less than 20 year. Angel has emerged as a leading retail broking group with a nation side presence through its:

15 Regional Hubs and 82 branches. 3800 + intermediaries. Direct team strength of 3000 +. 3.8 lac + customers.

Angel Research team:-

( A ) Angel broking limited is the first broking house in the county To have initiated retail focused research since the year 2000.

( B ) 50 + member team doing fundamental , technical , Commodities analysis.

( C ) One of the largest research teams in the industry for small And mid-cap.

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ANGEL INTENSIVE RESEARCH PROCESS

Industry wise specialized teams:-

( A ) Top down approach:- Identifying promising sectors and then companies with Good valuations.

( B ) Bottom-up approach:- Identifying under-valued stocks with sound management.

Company visits and interaction with top and second line of managers.

Through analysis of company financial data and industry trends.

estimates for future year earnings based on industry trends and Company business plans.

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SWOT ANALYSIS

The SWOT analysis is an extremely useful tool for understanding and decision-making for all sorts of situations in business and organizations. SWOT is an acronym for Strengths, Weaknesses, Opportunities, Threats.

ANGEL BROKING SWOT ANALYSIS:-

STRENGHTS Financial resources. Product skill. Angel broking team is experienced in the

trading.

WEAKNESSES Angel broking staff is exceptional.

OPPORTUNITIES Several additional client groups. Faster market growth. Entry into new market.

THREATS Other trading company.

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DATA ANALYSIS

SERVICES

PROTFOLIO MANAGEMENT SERVICES:-

Successful investing in Capital Markets demands ever more time and expertise. Investment Management is an art and a science in itself. Professional Investment Management Services are no longer the privilege of only large institutional

investors. Portfolio Management Services (PMS) is one such service that is fast gaining eminence as an investment avenue of choice for High Net worth Investors like you. PMS is a sophisticated investment vehicle that offers a range of specialized investment strategies to capitalize on opportunities in the market. The Portfolio Management Servicecombined with competent fund management, dedicated research and technology, ensures a rewarding experience for its clients.

Angel PMS brings with it years of experience, expertise, research and the backing of India's leading stock broking house. At Angel, experienced portfolio management is the [35]

difference. You will enjoy a relationship with a portfolio manager equipped to design and implement a portfolio around your unique needs. We will advise you on a suitable product based on factors such as your investment horizonreturn expectations and risk tolerance. By entrusting the management of your Portfolios to Angel, you can enjoy convenience without compromising on quality.

PRIVATE CLIENT GROUP:-

Angel offers personalized advisory services to affluent HNI investors and actively assists them in managing their portfolio. PCG can seek guidance on specific stocks in their portfolio and can get active advice for timely exit and fresh investments. Here we also design customized products and services for our clients based on there risk profile, returns need and time horizon. Our experienced research team in-depth analysis and customized value added products and

services give us an immense advantage in assisting you to generate wealth on a longer and consistent basis.

INVESTMENT ADVISORY:-

To derive optimum returns from equity as an asset class requires professional guidance and advice. Professional assistance will always be beneficial in wealth creation. Investment decisions without expert advice would be like treating ailment without the help of a doctor.

Strong research has always been our forte. Our investment advisory department is backed by an experience research team. This team comprises of 12 sector special analysts [36]

and a Research Head. Their vast experience and expertise in spotting great investments opportunities has always been beneficial for our clients.

( A ) Expert Advice:-

Our expert investment advisors are based at various branches across India to provide assistance in designing and monitoring portfolios.

( B ) Timely Entry & Exit:-

Our advisors will regularly monitor your investments and will guide you to book timely profits. They will also guide you in adopting switching techniques from one stock to another during various market conditions.

( C ) De-Risking Portfolio:-

A diversified portfolio of stocks is always better than concentration in a single stock. Based on our research, we diversify the portfolio in growth oriented sectors and stocks to minimize the risk and optimize the returns.

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DEPOSITORY SERVICES:-

You must be aware that Angel Broking Ltd has started its depository services by registering with CDSL. There are various benefits of holding your demat account with us but the biggest advantage is that you shall be ensured of a risk free, prompt and efficient depository process.

DIFFERENCE BETWEEN ANGLE DEPOSITORY SERVICES & OTHER DEPOSITORY SERVICES.

Since our association is slated for a long time, we are in a much better position to know your requirement regarding your holding and transfer of securities.

No physical instructions are required for your sell obligations. We also offer to our clients the automated pay in facility for trade done through Angel Broking Ltd / Angel Capital and Dept Market Ltd.

The transaction charges that are being levied by us are the lowest in the industry as we believe in providing quality services at the most affordable costs.

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You have an option of choosing the products offered by CDSL:-

( A ) Easy facility :-

You can view, download and print the updated holding of your demat account along with valuation of holding.

←

( B ) Easiest facility :-

You can, by using this facility, submit your own delivery instructions on the internet without the intervention of your DP. This is in addition to all the facilities provided under the 'Easy' facility.

We would like you to know that the state of art technology being arranged for you is the best in the industry and all this is done so that you have convenience of accessing information from any desired location.

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MUTUAL FUND:-

The Angel Mutual Fund distribution and advisory division offers you the opportunity to diversify your investment portfolio. By offering a choice of investment schemes from all major mutual fund providers we have taken our 100% retail-focused philosophy a step further.

Angel Mutual Fund offers options catering to investors with varying risk-return profiles. We also help investors to choose the best mutual fund, based on their investment needs.

EMOTIONS

( A ) SELF DISCIPLINE:-

The greatest cause of loss in trading commodities is lack of self-discipline – lack of self-discipline to follow your

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game plan; lack of self-discipline to be patient; lack of self-discipline to take a loss or profit, lack of discipline to follow money management concepts. "Luck might play a part in the short-run, but in the end, only those players who play the game better will triumph. Acting in a disciplined manner is essential for success. "

( B ) TAKE PROFITS:-

Tremendous amounts of money can and are being made in the commodities markets. Profits are there for the making, but the real key to trading commodities is not making money; it is keeping it. It is not basking in the elation of success; it is taking your profits and looking over your shoulder.

( C ) BALANCE:-

Trading commodities is a game of psychology. It is a game of balance. Emotional extremes create an imbalance. In your elation at being successful, you will make mistakes of greed. In your reluctance to take a loss, you will make mistakes of fear. The tremendous emotional release one feels after closing out a big losing position is amazing.

Fighting the market, yet knowing it was going to go against us, but wanting it to go in our direction - pushing it, hoping for it, worrying about it. After a few days or a few weeks of that, it felt as though the weight of the world was taken off our shoulders when we finally take the loss.

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( D ) PROFIT & LOSS CYCLES:-

Most often, meeting a margin call will only increase your loss. A margin call means you are wrong in the market and your position should be closed out. Margin calls are met because people do not want to admit being wrong and take a loss; because they hope the market will eventually go in their direction. Avoid meeting margin calls.

( E ) FEAR & GREED:-

With the tremendous leverage commodities offer, you as a commodity trader, are frequently exposed to the basic emotions of fear and greed. At certain times in your trading career these emotions can make you completely and absolutely irrational, oblivious to what is really happening. It can make you rely on hope; hope that the market will do what you want it to do because it must! Otherwise, you will

lose all of your risk capital and sometimes much more. Not surprisingly, that doesn't matter to the markets.

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GUIDELINE FOR RISK MANAGEMENT

" Risk control is an essential part of trading successfully. Effective risk management requires not only the careful monitoring of risk exposure, but a strategy to minimize losses as well. Understanding how to control risk exposure allows the trader, beginner or veteran, to continue trading even when the inevitable losses occur. While every trade involves a degree of risk, some general principles of risk management, if applied, reduce the potential for loss. A few of the generally accepted market axioms for controlling risk are noted below and are applicable to anyone who has ever traded or ever considered trading”.

Trade with the trend:-

You will be less likely to incur a loss if you are following the market trend. The direction of the market does not matter as long as you are positioned for the trend that occurs. If you are not well positioned, then systematically reduce your risk exposure.

Diversify:-

Portfolio risk is reduced through diversification. Don't bet everything on one trade. Diversify your risk exposure by trading no more than 1% to 5% of your capital on any one position. (Contracts on different maturities of the same

commodity count as one position.) To be effective diversification must involve commodities that are not highly correlated (that is, that do not move in the same direction at the same time). High positive correlation reduces the benefits of diversification. Predetermined stop orders limit your risk exposure and will cut your losses in fast moving markets. Adopt a rigid stop-loss rule (for example, get out of a trade quickly if it loses 5-7%)

Don't overtrade:-

Reduce your risk exposure by cutting down on the number of trades you make and keeping your bets small. Be selective about the risks you take. Restrict your trades to the ones that are the most attractive. This forces you to do your homework and reduces impulsive and emotional trades. Because there will be fewer trades, you will have to be much more patient.

Risk management basically involves four essential steps:-

- Fully understanding the risks of the trade.

- Eliminating unnecessary risks where possible.

- Being selective about which risks to take.

- Acting quickly to reduce risk exposure if the market moves

against you. [44]

Common mistakes made by traders:-

( A ) Lack of a Game Plan:-

One of the most important moves a futures trader can make is to develop a game plan consisting of basic guidelines.

( B ) Meeting Margin Calls:-

Most often, meeting a margin call will only increase your loss. A margin call means you are wrong in the market and your position should be closed out. Margin calls are met because people do not want to admit being wrong and take a loss; because they hope the market will eventually go in their direction. Avoid meeting margin calls.

( C ) Lack of Money Management:-

Good money management means you know your profit objective and the odds of being right or wrong, and control your risk with stops. You are better off with a trade where you might lose 1000 if you are wrong, or make 1000 if you are right, that would work six times out of ten, than to take a trade where you would make 1500 if you are right and lose only 500 if you are wrong, but works only one time out of three.

[45]

( D ) Increasing Your Commitment With Success:-

One of the most dangerous mistakes you can make in trading commodities is to increase your exposure, as you become more successful. Just by being successful you will risk more per trade because you have more money. But, because you have more money (and confidence) when successful, you are also likely to take larger percentage risks. Not surprisingly, this ruins more futures traders than a series of small losses. You can overcome this mistake by not allowing your percentage commitment to increase as you realize profits and by maintaining your stop/loss discipline.

[46]

PRODUCT

ANGEL OUTSTER FUND:-

The objective of the scheme is wealth generation by delivering superior returns over long term through investments in equities.

Investment strategy:-

( A ) To generate wealth on consistent basic rather out performed by taking higher risk.

( B ) logic work well and thus will be given weightage along with financials.

( C ) early identification of stocks to ride through the entire investment cycle.

( D) Timing of investment is important to generate superior returns.

[47]

PERAMETER DRIVING INVESTMENT DECISION:-

( A ) Blend of growth and value stocks.

( B )Investments in companies regardless of market capitalization.

( C )Keen selection of stocks based on potential for value unlocking based on key events.

( D )Focus on companies which display:-

- Scalable business potential.

- Large market opportunity.

- Beneficiary of favorable economic cycle.

- Valuation at steep discount to asset value.

[48]

ANGEL BLUE CHIP:-

The objective of the scheme is to generate capital appreciation in the medium to long term through investments in equities and equity related instruments comprising predominantly large cap companies.

Investment strategy:-

( A ) overweight on large cap stocks. However Quality mid cap stocks may also be considered for investment.

( B ) the portfolio will however be overweight on large cap companies.

( C ) combination of top down and bottom up approaches. Portfolio. To comprise of a combination of growth and value stocks.

( D ) the portfolio strivers to insulate an investor from cyclical themes by investing in sector offering secular growth outlook.

[49]

Parameters Driving Investment Decision:-

( A ) The portfolio strives at all times to achieve an 70% allocation to large cap companies.

( B ) The portfolio strives to limit the exposure to any sector to less than 25% of the portfolio size.

( C ) The portfolio strives to limit the exposure to any sector to less than 10% of the portfolio size.

[50]

ANGEL GROWTH FUND:-

The objective of the scheme is to generate capital appreciation in the medium to long term through investments in equities and equity related instruments comprising of predominantly Mid-Cap and Small-Cap companies.

Investment strategy:-

( A ) focus on growth themes such as Infrastructure, services, manufacturing and domestic Consumption.

( B ) overweigh on mid cap and small cap stocks. However Quality large cap stock may also be considered for Investment depending on market condition.

( C ) Combination of top down and bottom up approaches. Portfolio to comprise of a combination of growth and Value stocks.

[51]

Parameter driving investment decision:-

( A ) The portfolio strives to limit the exposure to any sector To less then 25% of the portfolio size.

( B ) The portfolio strives to limit the exposure to any Stock To less then 10% of the portfolio size.

EQUITIES AND DERIVATIVES:-

( A ) To generate moderate returns by deployment into Equity assets and partially hedging the portfolio using options and futures & achieving this with a margin of safety.

( B ) Additionally the funds lying idle would be deployed in arbitrage between cash and future and /or place in low maturity debt funds and low risk F&O Strategies.

←

[52]

FINDINGS & INTERPRETATION

OBJECTIVE

To study the perception of investors towards commodity futures:-

In this section the data obtained through the questionnaire from the investors in commodity futures is analyzed.

[53]

SECTION :- A SEX

PROFILE :-

BAR CHART SHOWING THE SEX PROFILE OF THE RESPONDENTS

Findings

From the above table and chart, it can be seen that 80% of the respondents were male, and 20% were female.

SEX NO. OF RESPONDENTS

PERCERTENGE 80%

Male 20 80

Female 5 20

0%

10%

20%

30%

40%

50%

60%

70%

80%

MALE FEMALE

MALE

FEMALE

InterpretationIt can be concluded that mainly males invest in commodity futures.

[54]

AGE PROFILE :-

BAR CHART SHOWING THE AGE PROFILE OF THE RESPONDENTS

AGE GROUP

NO.OF RESPONDENTE

PERCENTAGE

20 -30 13 52%30 - 40 6 24%40 - 50 5 20%50 Above 1 4%

0%

10%

20%

30%

40%

50%

60%

20-30year

30-40year

40-50year

50year

above

20-30 year

30-40 year

40-50 year

50 year above

FindingsFrom the above table and chart, it can be seen that 52% of the respondents were in the age group of 20-30 years, 24% were in the age group of 30-40 years, and 20% were in the age group of 40-50 years and 4% in the age group of 50 years and above.

InterpretationIt can be concluded that mainly the young people have invested commodity futures.

[55]

INCOME PROFILE :-

BAR CHART SHOWING THE INCOME PROFILE OF THE RESPONDENTS

Findings From the above table and chart, it can be seen that 40% of the respondents were in the income group of below Rs. 4 lakh, 56% were in the income group of Rs. 4-10 lakh, 56% were in the income group of Rs. 4-10 lakh and 4% were in the income group of Rs. 10-25 lakh. Interpretation It can be concluded that most of the people who have invested commodity futures are in the income group of Rs.4-10 lakh.

INCOME GROUP

No. respondents

Percentage

Below 4 lakh 10 40%

4-10 lakh 14 56%

10-25 lakh 1 4%

Above 25 lakh 0 0%

0%

10%

20%

30%

40%

50%

60%

4 lakhbelow

4-10lakh

10-25lakh

25lakh

above

4 lakh below

4-10 lakh

10-25 lakh

25 lakh above

EDUCATION PROFILE:-

BAR CHART SHOWING THR EDUCATION PROFILE OF THE RESPONDENTS

FindingsFrom the above table and chart, it can be seen that 60% of the respondents were in the Graduate group, 36% were in the post graduate group, 4% were in the P.U.C group and 0 % in the higher secondary group invested in commodity futures.

InterpretationIt can be concluded that mainly the young graduates have invested commodity futures.

EDUCATION QUALIFICATION

No. respondents

Percentage

Higher secondary

0 0%

P.U.C 1 4%

Graduate 15 60%

Post Graduate 9 36%

[57]

SECTION:- B

[1] Have you invested in commodity futures?

particular No. of Respondents

Percentage

Yes 23 92%

No 2 8%

BAR CHART SHOWING THE PERCENTAGE OF RESPONDENTS WHO HAVE INVESTED IN COMMODITY FUTURES

FindingsFrom the above table and chart, it can be seen that 92% of the respondents have invested in commodity futures, and 8% have not invested in commodity futures.

Interpretation

It can be concluded that most of the respondents have invested in commodity futures.

[58]

[2] Have you invested in any other securities.

particular No. of Respondents

Percentage

Yes 18 72%

No 17 28%

BAR CHART SHOWING THE INVESTED IN OTHER SECURITIES Findings From the above table and chart, it can be seen that 72% of the respondents have invested in other securities, and 28% have not invested in any other security. Interpretation It can be concluded that most of the respondents have invested in other securities also. [59]

0%

10%

20%

30%

40%

50%

60%

70%

80%

YES NO

YES

NO

[3] Which are the investment you have made ( excluding commodity futures)?

particular No. of Respondents

percentage

Shares 16 35%

Mutual funds 9 20%

Bonds 3 6%

Bank Deposits

5 10%

Real estate 7 15%

Jewellery 4 9%

Insurance 2 5%

[60] BAR CHART SHOWING THE VARIOUS INVESTMENTS MADE BY RESPONDENTS

FindingsIt can be seen that, out of the respondents who have invested in other securities, 35% of them have investedin shares, 20% Mutual funds, 6% in Bonds, 10% have invested in bank deposits. 15% in real estate, 9% have invested in jewellery and the rest 9% have invested in insurance.

InterpretationIt can be concluded that other than commodity futures, most of the respondents have invested in shares. [61]

[4] What is your experience in your previous investment ( excluding commodity futures )?

particular No. of Respondents

percentage

Good 13 52

Bed 9 36

Reasonable 2 8

BAR CHART SHOWING THE EXPERIENCE OF THE RESPONDENTS IN THEIR PREVIOUS INVESTMENT Findings It can be seen that 52% of the respondents had a good experience in their previous investment, 36% had a Reasonable experience in their previous investment and 8% had a bad experience in their previous investment. Interpretation It can be concluded that most of the respondents had a good experience in their previous investment. [62]

0%

10%

20%

30%

40%

50%

60%

GOOD BED REASO-NABLE

GOOD

BED

REASONABLE

[5] How often do you trade in commodity future?

particular No. of Respondents

percentage

Everyday 6 24%

Once a week

3 12%

Only when there is a good price

16 64%

BAR CHARE SHOWING THE INVEST FREQUENCE OF TREDING IN COMMODITY FUTUERS.

FindingsIt can be seen that out of the investors in commodity futures, 24% of them trade everyday, 12% of them traded once a week and 64% traded only when there is good price.

Interpretation

It can be concluded that most of the investors trade in commodity futures only when there is a good price.

[63]

6) What is your objective when trading in commodity futures?

particular No. of Respondents

percentage

Less risky investment

8 32

Diversification of portfolio

9 36

Very good returns

6 24

other 1 4

BAR CHART SHOWING THE OBJECTIVE OF THE INVESTOR TO INVEST IN COMMODITIES FUTURES

FindingsIt can be seen that out of the investors in commodity futures, 32% of them have invested with the objective a less risky investment, 36% of them invested with the objective of diversifying hid portfolio and 24% of them due to the expectation of very good returns and 4% have invested due to other reasons.InterpretationIt can be concluded that most of the investors in commodity futures, have invested with the objective of diversifying their portfolio. [64]

7) What is the amount you have invested in commodity futures?

particular No. of Respondents

percentage

2 Lakh 6 24

2-3 Lakh 12 48

3-5 Lakh 6 24

5-10 Lakh 1 410 Lakh more

0 0

BAR CHART SHOWING THE AMOUNT INVESTED IN COMMODITIY FUTURES

FindingsIt can be seen that out of the investors, 24% of them had invested Rs. 2 lakhs, 48% of them had invested between Rs. 2-3 lakhs, 24% had invested between Rs. 3-5 lakhs and 4% had invested between Rs. 5-10 lakhs.

InterpretationIt can be concluded that most of the investors had invested between Rs. 2-3 lakhs in commodity futures.8) Which commodities have you traded in the most?

particular No. of Respondents

percentage

wheat 6 9

cotton 5 7

coffee 6 9

corn 5 7

BAR CHART SHOWING THE MOSTLY TRADED COMMODITIES BY THE INVESTORS

FindingsIt can be seen that out of the investors in commodity futures, 9% investor invest in wheat, 5% investor invest in cotton,9% investor invest in coffee, and 7% investor invest in corn.

InterpretationIt can be concluded that the mostly traded commodity is wheat and coffee. [66]

9) What percentage of savings have you invested in commodity futures?

particular No. of Respondents

percentage

0-10% 2 8

10-20% 8 32

20-30% 11 44

30-50% 1 4

50% above

3 12

BAR CHART SHOWING THE PERCENTAGE OF SAVING THE INVESTOR HAS MADE IN COMMODITY FUTURES

FindingsIt can be seen that, 44% of the investors have invested between 20-30% of their savings in commodity futures, 32% of them have invested between 10-20% of their savings, 12% of them have invested above 50% of their savings, 8% of them have invested between 0-10% of their savings and 4% of them have invested between 30-50% of their savings.

InterpretationIt can be concluded that most of the investors have invested between 20-30% of their savings in commodity futures. [67]

10) How did you get to know about commodity futures trading?

particular No. of Respondents

percentage

Friends 15 60

Media 4 16

Self- research

6 24

other 0 0

BAR CHART SHOWING THE MAENS THROUGHT WHICH INVESTORS GOT TO KNOW ABOUT COMMODITY FUTURES

FindingsIt can be seen that, 60% of the investors got to know about commodity futures through their friends/family,16% got to know through media and 24% of the investors got to know through self-research.

InterpretationsIt can be concluded that most of the investors got to know about commodity futures through friends/family.

[68]

[11] Which is the risk management technique , which you use mostly?

BAR CHART SHOWING THE MOSTLY USED RISK MANAGEMENT TECHNIQUE

Findings It can be seen that out of the risk management techniques, 48% of the investors use locking, 28% use switching and 12% use Cut loss technique. Interpretation It can be concluded that locking is the mostly used risk management technique. [69]

particular No. of Respondents

percentage

switching 3 12 Averaging 7 18 locking 12 48 Cut-loss 3 12

0%

5%10%15%

20%25%30%35%

40%45%50%

switching averaging locking cut-loss

switching

Averaging

locking

cut-loss

12) What do think about the felicitation fee charged by your company?

BAR

CHART SHOWING THE PERCEPTION TOWARDS THE FACILITY CHARGED BY THEIR COMPANY.

FindingsIt can be seen that, 76% of the investors feel that the facility fee charged by their company is reasonable, 20% of them feel that the facility fee charged by their company is high and 4% of the investors feel that it is very high.

Interpretations

particular No. of Respondents

percentage

Very high 1 4High 5 20Reasonable

19 76

Low 0 0

It can be concluded that most of the investors feel that the facility fee charged by their company is reasonable. [70]

13) What do you think of the return derived from commodity futures?

FindingsIt can be seen that, 68% of the investors feel that they got good returns from commodity futures trading, 24% of them feel that they got reasonable returns commodity futures, 8% of the investors felt they got bad returns from commodity futures.

Interpretations

particular No. of Respondents

percentage

Good 17 68Reasonable

6 24

Bad 2 8 BAR CHART SHOWING THE EXTEND OF RETURNS DERIVED BY THE INVESTOR FROM COMMODITY FUTURES

It can be concluded that most of the investors got good returns from commodity futures. [71]

14) Do you think risk can be reduced by commodity futures?

FindingsIt can be seen that 88% of the investors feel that risk can be reduced through commodity futures, and 12% of theInvestors feel that risk cannot be reduced through commodity futures.

InterpretationIt can be concluded that most of the investors feel that “risk can be reduced” through commodity futures trading.

particular No. of Respondents

percentage

Yes 22 88 No 3 12

BAR CHART SHOWING THE INVESTOR OPINION ON WHETHER RISK CAN BE REDUCED BY COMMODITY FUTURES

[72]

15) Do you think commodity future is a good investment opportunity?

BAR CHART SHOWING THE OPINION OF THE INVESTOR OF WHETHER COMMODITY FUTURE IS A GOOD INVESTMENT OPPORTUNITY

FindingsFrom the above table and chart, it can be seen that 92% of the investors feel that commodity futures is a goodinvestment opportunity and 8% investors feel that commodity futures is not a good investment opportunity.

Interpretation

particular No. of Respondents

percentage

Yes 22 88 NO 3 12

It can be concluded that most of the investors feel that commodity futures is a “good investment opportunity”. [73]

CONCLUSION

The prime objective of this study is to attempt to prove that commodity futures can be efficiently used to reduce risks of a person who is directly involved with the trading of the commodity. Another objective was to prove that it was a sound investment opportunity.

In order to prove both the objectives, a few sub objectives were earmarked and analyzed. The first being the trading system of commodity futures. The trading system included the exchange where the trade takes place the clearinghouse which ensures that the money is transferred to the right person at the right time. The trading system also includes trading and intermediary participants, who ensure the correct price discovery. Thus the trading system is one of the factors which reduce the risk in commodity futures.

Commodity futures trading included the intermediary and trading participants likes brokers who make use of the various technical analysis tools in order to make predictions of the price movement’s they also take into consideration the fundamental analysis. Thus with the help of the various analysis tools, efficient price predictions can be made, where the investors in commodity futures can benefit from the price movements. There was also an objective to analyze the growth of commodity future. From the analysis, it can be

Concluded that, commodity futures trading is experiencing tremendous growth. This can be emphasized by the fact that there has been an increasing trend in the volume traded in [74]

most of the commodities. Thus, commodity futures are a growing market.

To find out the investors perception towards commodity futures, questionnaire survey was conducted, where in various parameters were taken into consideration. From the questionnaire, it could be concluded that most of the respondents felt that risk could be reduced through commodity futures and that it was a sound investment opportunity.

[75]

APPENDIX

ANGEL BROKING LTD

KNOW YOUR CLIENT ( KYC)

1. ARE YOU AWARE ABOUT THE FOLLOWING SERVICES OF ANGEL BROKING LTD:

SR.NO

PRODUCT NOT AT ALL

PARTILE

FULL

1. NSE, BSE, FO

2. DEMAT ACCOUNT

3. MCX, NCDX

4. PMS

5. INSURANCE

6. MUTUAL FANDS

2. PLEASE TICK ONE OF THE FOLLOWING STATUMANTS: [ ] I am totally satisfied & don’t want to switch. [ ] I am satisfied but expect more improvements in service. [ ] I am totally dissatisfied and switch over.

3. DO YOU HAVE ANY COMPAINS OR SUGGESTION FOR US: _______________________________________________________________________________________________________________________________________________________________________________________________________________________

CLINT ID:- ___________________ CLINT NAME:-________________ CLINT SIGNATURE:-___________ [76]

QUESTIONNAIRE PART – A

1) Name:- __________________________________

2) Sex: Male:- Female:-3) Age:

20-30 Years:- 30-40 years:- 40-50 Years:- Above 50 years:-

4) Education: secondary:- Higher secondary:- Graduation:- Post-graduation:- Any other:-

5) Occupation: Government employee:- Self-employee:- Commodity futures investor:- Private sector employee:- Others Businessman:- 6) Income: Below 400000:-

4,00,001 – 10,00,000:- 10,00,001 – 25,00,000:- Above 25,00,000:- [77]

PART – B

1) Have you invested in commodity futures? Yes:- No:-

2) Have you invested in any other security? Yes:- No:-

3) Which are the investments you have made (excluding commodity futures)? Shares:- Bonds: Mutual funds:- Bank deposits:- Real estate:- Jewellery:- Others:

4) What is your experience in your previous investment (excluding commodity futures)? Good:- Reasonable:- Bad:-

5) How often do you trade in commodity futures? Everyday:- Once a week:- Trade only when there is a good price:- [78]

6) What is your objective when trading in commodity futures? Less risky investment:- Diversification of portfolio:- Very good returns:- Others:-

7) What is the amount you have invested in commodity futures? 2,00,000:- 2,00,000-3,00,000:- 3,00,000-5,00,000:- 5,00,000-10,00,000:- Above 10,00,000:-

8) Which commodities have you traded in the most? Wheat:- cotton:- Coffee:- Corn:-

9) What percentage of savings have you invested in commodity futures? 0-10% :- 10-20%:- 20-30%:- 30-50%:- 50% and above:-

10) How did you get to know about commodity futures

trading? Friends/family:- Self-research:- Media:- Others:-

11) Which is the risk management technique, which you use mostly? Switching:- Averaging:- Locking:- Cut loss:-

12) What do think about the felicitation fee charged by your company? Very high:- High:- Reasonable:- Low:-

13) What do you think of the return derived from commodity futures? Good:- Reasonable:- Bad:-

14) Do you think risk can be reduced by commodity futures? Yes:- No:-

15) Do you think commodity future is a good investment opportunity? Yes:-

No:-

[80]

BIBLIOGRAPHY

BOOKS:-

THE INDIAN FINANCIAL SYSTEM BY VASANTH DESAI

Websites

www.rbi.org

www.sebi.com

www.barchart.com

www.angeltraed.com

www.angelcommodity

[81]