Financial Market and Investor's Behavior in Financial Market

8/9/2019 Financial Market and Investor's Behavior in Financial Market

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FI NANCI AL M AR K ET

ANDI NVESTOR S BEH AVI OUR I N

TH E M ARK ET

PRESENTED BY

HARDEEP SHARMA

MBA-2ND

ROLL NO.-3832

PRESENTED BY

HARDEEP SHARMAMBA-2ND

ROLL NO.-3832

FINANCIAL MARKET

ANDINVESTORS BEHAVIOUR

IN MARKET


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FINANCIAL MARKETING

A financial market is a mechanism that allows people toeasily buy and sell (trade) financial securities (such asstocks and bonds), commodities (such as preciousmetals or agricultural goods), and other fungibleitems of value at low transaction costs and at pricesthat reflect the efficient market hypothesis

Financial markets could mean:1. Organizations that facilitate the trade in financial

products. i.e. Stock exchanges facilitate the trade instocks, bonds and warrants.

2. The coming together of buyers and sellers to tradefinancial products. i.e. stocks and shares are tradedbetween buyers and sellers in a number of waysincluding: the use of stock exchanges; directlybetween buyers and sellers etc.


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TYPES OF FINANCIAL MARKETS

FINANCIAL

MARKET

C

A

P

IT

A

L

M

A

R

KE

T

S

C

O

M

M

OD

I

T

Y

M

A

R

KE

T

S

M

O

NE

Y

M

A

R

KE

T

S

D

A

R

R

I

V

A

T

I

V

E

M

A

R

K

E

T

I

N

G

I

N

S

U

R

A

N

C

E

M

A

R

K

E

T

S

F

O

R

EI

G

N

E

X

C

H

A

N

G

E

M

A

R

KE

T

S


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TRADING IN FINANCIAL MARKET

EQUI TY SH ARES

M UTUAL FUNDS

DEBENTURES

BONDS

CERTI FI CATE OFDEP OSI T

COM M ERCI AL PAPER


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COMPANY PROFILE

"SUCCESS HINGES ON A PASSION FOR EXCELLENCE"

" SUC C E SS H IN G E S ON A P A SSION F OR E X C E LLE N C E "

COM PANY P R OF I L E

RATING:3rd largest broking house of India in terms of trading

terminals

5th largest sub-broker network in the country

5th

largest distributors of IPO in Retail


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I M P ORTANT CH ARACTERI STI CS OF SM C

Member of NSE, BSE, NCDEX, MCX, DGCX, Clearing

Member in NSE Derivative Segment & DGCX and ISO 9001:

2000 certified DP for shares and commodities.

Promoted and lead by a team of professionals having rich

experience in the capital markets of more than 15 years.

Providers of one of the best trading platforms to trade in NSE,

BSE, NCDEX, MCX and DGCX.

SMC has expanded, globally by acquiring Trading & Clearing

Membership of Dubai Gold and Commodity Exchange (DGCX). Dedicated and highly motivated workforce of more than 1000

personnel drawn from diverse academic backgrounds, such as

CA, CS, ICWA, M.B.A and IT.

Excellent Research Team.


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VISION

To be a global major inproviding complete

investment solutions,

with relentless focus oninvestor care, through

superior efficiency and

complete transparency.


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.

Mutual fund is a form of

collective investment that pools

money from many investors and

invests the money in stocks,

bonds, short-term money market

instruments, and/or other

securities. In a mutual fund, the

fund manager trades the fund's

underlying securities, realizing

capital gains or loss, and collects

the dividend or interest income.The investment proceeds are

then passed along to the

individual investors.


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THE RISK AND RETURN ON INVESTMENT


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OBJECTIVES OF THE STUDY

Know customer behavior in the market about their investment.

Describe financial market & its components. Where mutual

funds exist & contribute in it?

Which type of risks and return a customer get in investment?

Analysis of different mutual funds and concludes how one issueis better than other. Which factors should be focused whilemarketing investment?


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RESEARCH METHODOLOGYRESEARCH DESIGN

DESCRIPTIVE

SAMPLE SIZE

100

SAMPLING TECHNIQUE

DELIBERATEPLACE

CANNAUGHT PLACE,DELHI

SOURCES OF DATA COLLECTION

Primary : Tool Questionnaire- Observation

Secondary : Tool - SMC issues & magazine

- Through SMC-website

- BSE, MFAI website


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Q-WHERE DO YOU LIKE TO INVEST YOUR MONEY? RANK THEM

ACCORDING TO YOUR PREFERENCE

(A) MUTUAL FUND (B) BANK F. D.

(C) SHARES (D) POST OFFICE

(E) GOVT. BONDS


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Q-WHERE DOES MUTUAL FUND EXIST IN YOUR INVESTMENT PORTFOLIO?(A) 0 - 25% (B) 25 - 50%

(C) 50 - 75% (D) 75 100%


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Q-ARE YOU SATISFIED FROM YOUR INVESTMENT?

(A) YES (B) NO


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Q-HOW WILL YOU RANK SECURITIES IN RESPECT OF THEIR

RISK FACTOR?

(A) EQUITY (B) MUTUAL FUNDS(C) COMMODITY (D) F & O


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Q-HOW MUCH MINIMUM RETURNS DO YOU PREFER

WHILE MAKING INVESTMENT?

(A) 5-10% (B) 10-15%(C) 15-20% (D) 20-25%


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Q-WHICH MEDIUM DO YOU MAKE FOR TRANSACTIONS?(A) ONLINE (B) BROKERS

(C) BY POST (D) SELF


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Q-9 WHEN WOULD YOU LIKE TO INVEST YOUR MONEY? WHEN!(A) MARKET IS VERY HIGH (B) MARKET IS RISING

(C) MARKET IS DECLINING (D) MARKET IS VERY LOW


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CONCLUSION OF RESEARCH

Age factors

Geographical factors

Personal factors Investors perception

Investors attitude


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FINDINGS

People in India are risk averter they want safe investmentthats why people marked bank f.d as their first preference.

People preferred mutual funds after bank f.d because intheir opinion mutual funds are less risky as compared to

other securities. 28% of the sample population is not aware about mutual

fund and its schemes. Approximately 50% of population want to invest at most 25%

of their investment in mutual funds.

Approx. 70% people want return more than 10% on theirinvestment for them mutual fund is a very good option. People want to invest when market is rising or it is very low.


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LIMITATIONS

Time horizon of study limits the research.

Few Customers were not ready to co-operate atthe time of survey.

Cost factor was also a limitation of the study.

Sample size taken was less for representingreal population. Respondents many times were

uninterested or in hurry so there may be a littlebiasness from there side to complete thequestionnaire like their attitude, values, andego came in between.


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Financial Market and Investor's Behavior in Financial Market

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