PERCEPTION OF THE INVESTORS

TOWARDS INVESTMENT IN EQUITIES

“AFTER SLOW DOWN”

By : ASHISH KUMAR
043/PGDMA/KJ/2008/119
Agenda
 About the company
 About slow down
 objective
 Research methodology
 Data analysis
 Conclusion
 Limitation
IL&FS Investsmart Limited
Ticker: 532653 Country: INDIA

  Exchanges: BOM Major Industry: Financial

    Sub Industry: Securities Brokerage

3,948,473,227
  2008 Sales Employees: 1,997
(Year Ending Jan 2009).

  Currency: Indian Rupees Market Cap: 16,942,279,830

  Fiscal Yr Ends: March Shares Outstanding: 69,836,273

  Share Type: Ordinary Closely Held Shares: 51,127,614

 
 Competition
Last Price Market Cap. Sales Turnover Net Profit Total Assets
(Rs. cr.)

India bulls 167.50 4,248.30 2,003.09 99.45 14,722.36

India Info line 120.00 3,400.80 571.50 103.59 1,180.20

Edelweiss Cap 401.60 3,009.32 900.50 186.44 2,453.28

Rel Capital Ven 20.50 2,507.42 - - 1,223.15

MotilalOswal F 135.75 1,927.92 57.26 45.31 399.93

FutureCapitall 245.30 1,558.34 - - 824.08

IL&FS Investsmat 155.80 1,088.05 24.31 -15.21 682.44

Network 18 130.30 937.29 142.10 44.04 399.69

Geojit BNP 40.30 900.35 140.56 14.39 242.53

Nalwa Sons Inv 639.95 328.69 14.78 11.26 259.61

 About slow down
 An extended decline in general business activity.

 The National Bureau of Economic Research formally

defines a recession as three consecutive quarters of
falling real gross domestic product.

 Broadly defined, a recession is a downturn in a

nation's economic activity. The consequences typically
include increased unemployment, decreased
consumer and business spending, and declining stock
prices.
 OBJECTIVES

 To find out that do people have faith in share

market or not.
 What they consider before making an
investment?
 Have they changed the sector for investment
after the slow down?
 There views about share market.
 Research methodology
RESEARCH DESIGN
 My research is a DESCRIPTIVE RESEARCH.

 I followed SINGLE CROSS-SECTIONAL DESIGN, where only one

sample of respondents is drawn from the target population, and
information is obtained from this sample only once.
 SAMPLE DESIGN
 Target population
 1. Sample element - One who invests in equities
 2. Sample unit - investors
 3. Extent - DELHI
 4. Time - all seven days
 Sample Frame – list of the existing customers of IL & FS INVESTMART, and
some of the known person to me.
 Sampling Procedure – Simple Convenient Sampling
 Sample size = 103
 Remarks – My aim was to get my questionnaires rightly filled by that person who
does investment. For this I covered various areas of Delhi such as Cannaught
Place, patel Nagar Chandani chowk, .
 Sampling procedure: For my research Simple was convenient Sampling
with a sample size of 103. I moved to another person in case one was not willing
to help me despite my effectual efforts.
 Data collection
Primary data: interaction with people and questionnaire
filled by them.

Secondary data: From Internet, and company sources.

Tool use for analysis : SPSS (Statistical Package for the

Social Sciences )
Data analysis
 Question
Where do you invest? (Can be selected more than
one)
1. Equity share market
2. mutual funds
3. government bonds
4. real estate
5. insurance
 Where does u invest?
Cumulative
Frequency Percent Valid Percent Percent

Valid equity share market 41 39.8 39.8 39.8

mutual fund 16 15.5 15.5 55.3

govt. bonds 1 1.0 1.0 56.3

Insurance 3 2.9 2.9 59.2

more than one with

41 39.8 39.8 99.0
equity

real state 1 1.0 1.0 100.0

Total 103 100.0 100.0

 Question

What do you consider before investment in

equity?
1. quick return
2. more profit
3. comfortable business
4. security
 what they consider
Cumulative
Frequency Percent Valid Percent Percent
Valid quick return 30 29.1 29.1 29.1
more profit 29 28.2 28.2 57.3
comfortable
19 18.4 18.4 75.7
business
Security 6 5.8 5.8 81.6
more than one 19 18.4 18.4 100.0
Total 103 100.0 100.0
Question

For how many years you do trading?

1. 0 – 1 yrs
2. 1 –2 yrs
3. 2 – 5 yrs
4. more than 5 yrs
 How many years you do trading?
Cumulative
Frequency Percent Valid Percent Percent
Valid 0-1 yrs 38 36.9 36.9 36.9
1-2 yrs 46 44.7 44.7 81.6
2-5 yrs 15 14.6 14.6 96.1
more than 5 yrs 4 3.9 3.9 100.0
Total 103 100.0 100.0
 Question

How much you have invested in share market?

1. Rs.1000 – Rs. 5000

2. Rs. 5000 – Rs 50000

3. Rs. 50000 -- Rs. 100000

4. More than Rs. 100000

 how much investment in share market
Valid Cumulative
Frequency Percent Percent Percent
Valid Rs.1000-Rs5000 12 11.7 11.7 11.7
Rs5000-Rs50000 47 45.6 45.6 57.3
Rs50000-
29 28.2 28.2 85.4
Rs100000
more than Rs
15 14.6 14.6 100.0
100000
Total 103 100.0 100.0
 Question

Where do you prefer to put your money in?

1. high capitalization (high cap )
2. medium capitalization (mid cap )
3. small capitalization (small cap )
 Where do u invest into?
Cumulative
Frequency Percent Valid Percent Percent
Valid high cap 16 15.5 15.5 15.5
mid cap 48 46.6 46.6 62.1
small cap 29 28.2 28.2 90.3
more than one 9 8.7 8.7 99.0
Total 103 100.0 100.0
 Likert scale

Listed below are different opinions about share

market. Please indicate how strongly you agree
or disagree with each by using following scale:
1 = strongly disagree
2 = Disagree
3 = neither agree or disagree
4 = Agree
5 = strongly agree
 These days do shares give a good return ?
Valid Cumulative
Frequency Percent Percent Percent
Valid strongly disagree 3 2.9 2.9 2.9
disagree 18 17.5 17.5 20.4
neither agree or
38 36.9 36.9 57.3
disagree
agree 40 38.8 38.8 96.1
strongly agree 4 3.9 3.9 100.0
Total 103 100.0 100.0
 Is share market still a safe business to invest?
Frequen Valid Cumulative
cy Percent Percent Percent
Valid Strongly disagree 5 4.9 4.9 4.9
Disagree 30 29.1 29.1 34.0
Neither agree or
33 32.0 32.0 66.0
disagree
Agree 34 33.0 33.0 99.0
Strongly agree 1 1.0 1.0 100.0
Total 103 100.0 100.0
 is share market like a gamble ?
Frequenc Valid Cumulative
y Percent Percent Percent
Valid Strongly disagree 3 2.9 2.9 2.9
Disagree 9 8.7 8.7 11.7
Neither agree or
20 19.4 19.4 31.1
disagree
Agree 39 37.9 37.9 68.9
Strongly agree 32 31.1 31.1 100.0
Total 103 100.0 100.0
 more risk involved in share market ?
Frequenc Valid Cumulative
y Percent Percent Percent
Valid Strongly disagree 3 2.9 2.9 2.9
Disagree 9 8.7 8.7 11.7
Neither agree or
17 16.5 16.5 28.2
disagree
Agree 51 49.5 49.5 77.7
Strongly agree 23 22.3 22.3 100.0
Total 103 100.0 100.0
 Is share market a comfortable business?
Frequen Valid Cumulativ
cy Percent Percent e Percent
Valid Strongly disagree 11 10.7 10.7 10.7
Disagree 36 35.0 35.0 45.6
Neither agree or
39 37.9 37.9 83.5
disagree
Agree 14 13.6 13.6 97.1
Strongly agree 3 2.9 2.9 100.0
Total 103 100.0 100.0
 in share market is higher the risk higher the return ?
Cumulative
Frequency Percent Valid Percent Percent
Valid Disagree 6 5.8 5.8 5.8
Neither agree or
16 15.5 15.5 21.4
disagree
Agree 45 43.7 43.7 65.0
Strongly agree 36 35.0 35.0 100.0
Total 103 100.0 100.0
 QUESTION

 which sector where do you like to invest

these days as compared to previous
days?
 pharmaceutical
Cumulative
Frequency Percent Valid Percent Percent
Valid not applicable 53 51.5 51.5 51.5
in slow down 36 35.0 35.0 86.4
after slow
10 9.7 9.7 96.1
down
in both 4 3.9 3.9 100.0
Total 103 100.0 100.0
 IT
Cumulative
Frequency Percent Valid Percent Percent
Valid not applicable 35 34.0 34.0 34.0
in slow down 24 23.3 23.3 57.3
after slow
33 32.0 32.0 89.3
down
in both 11 10.7 10.7 100.0
Total 103 100.0 100.0
 FMCG
Cumulative
Frequency Percent Valid Percent Percent
Valid not applicable
52 50.5 50.5 50.5

in slow down 25 24.3 24.3 74.8

after slow down
22 21.4 21.4 96.1

in both 4 3.9 3.9 100.0

Total 103 100.0 100.0
 real state
Cumulative
Frequency Percent Valid Percent Percent
Valid not applicable 38 36.9 36.9 36.9
in slow down 40 38.8 38.8 75.7
after slow down 17 16.5 16.5 92.2
in both 8 7.8 7.8 100.0
Total 103 100.0 100.0
 banking
Cumulative
Frequency Percent Valid Percent Percent
Valid not applicable
39 37.9 37.9 37.9

in slow down 17 16.5 16.5 54.4

after slow
35 34.0 34.0 88.3
down
in both 12 11.7 11.7 100.0
Total 103 100.0 100.0
 infrastructure
Cumulative
Frequency Percent Valid Percent Percent
Valid not applicable 59 57.3 57.3 57.3
in slow down 15 14.6 14.6 71.8
after slow down 27 26.2 26.2 98.1
in both 2 1.9 1.9 100.0
Total 103 100.0 100.0
 automobile
Cumulative
Frequency Percent Valid Percent Percent
Valid not applicable 61 59.2 59.2 59.2
in slow down 20 19.4 19.4 78.6
after slow down 19 18.4 18.4 97.1
in both 3 2.9 2.9 100.0
Total 103 100.0 100.0
 mutual fund
Cumulative
Frequency Percent Valid Percent Percent
Valid not applicable 53 51.5 51.5 51.5
in slow down 22 21.4 21.4 72.8
after slow
24 23.3 23.3 96.1
down
in both 4 3.9 3.9 100.0
Total 103 100.0 100.0
 others
Cumulative
Frequency Percent Valid Percent Percent
Valid not applicable 71 68.9 68.9 68.9
in slow down 2 1.9 1.9 70.9
after slow
30 29.1 29.1 100.0
down
Total 103 100.0 100.0
Personal details
 age group
Cumulative
Frequency Percent Valid Percent Percent
Valid 20-35 73 70.9 70.9 70.9
35-50 21 20.4 20.4 91.3
50 & above 9 8.7 8.7 100.0
Total 103 100.0 100.0
 working or not working
Cumulative
Frequency Percent Valid Percent Percent
Valid working 79 76.7 76.7 76.7
non-working 24 23.3 23.3 100.0
Total 103 100.0 100.0
 education level
Cumulative
Frequency Percent Valid Percent Percent
Valid high school 5 4.9 4.9 4.9
graduate 58 56.3 56.3 61.2
post graduate 40 38.8 38.8 100.0
Total 103 100.0 100.0
CONCLUSIONS

 All findings reveal that people still have faith in share market and most respondents say that share market still give

good returns even in the times of slowdown.

 The highest percentage of respondents i.e. 39.8% have invested their money in equities, which shows that people

prefer more to invest in share market than any other source.

 People also find share market to be a gamble but at the same time they find it a safe business.

 People invest the least in Govt. bonds and real estate.

 Most of the respondents have changed sectors to recover their losses or to get more profit.

 
LIMITATIONS

 People did not want to give right information

about there investment and period of
investment.
 Sample size was very small .
 Most of the people did not want to talk or give
response.
 This could be more descriptive research .