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MARWADI SHARES AND FINANCE LIMITED

1

A

Project Repot

On

CHANGING TRENDS OF INVESTMENT

PATTERNS IN DIFFERENT ASSETS CLASSES

At

MARWADI SHARES AND FINANCE LIMITEDM, BHAVNAGAR

Under the Guidance of (in Company)

NIRAJ MARWADI

Under the Guidance of (College)

Dr. VISHAL PATIDAR

Institution

Submitted to

Gujarat Technological University - Ahmedabad

Prepared By:

KALSARIYA NILESH KANTIBHAI

M.B.A. Sem. II, Seat No 13956


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K. K. Parekh Institute of Management Student Amreli

Dr. Jivraj Mehta Vidhya Vihar Campus Lathi road Amreli

Ph: (02792) 223509 fax: (02792) 223509

E-mail: [email protected]

Web: kkpimsamreli.com

DIRECTORS RECOMMENDATION

TO,

The Registrar

Gujarat Technological University

Ahmedabad

Subject: MBA Summer Training Project Report

Respected Sir,

I am recommending the Summer Training Project entitled- CHANGING TRNDS OFINVESTMENT PATTERN IN DIFFERENT ASSETS CLASSES prepared by

KALSARIYA NILESH KANTIBHAI at MARWADI SHARES AND FINANCE LIMITED,

BHAVNAGARas the partial fulfillment of the University requirement for the award of

MBA degree of Gujarat Technology UniversityAhmedabad.

Date: - Thanking You,

Place: - Amreli Yours Truly

Director


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K. K. P. I . M . S.AMRELI


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S T U D E N T D E C L A R A T I O N

I the undersigned student KALSARIYA NILESH KANTIBHAI ofK. K. Parekh Institute

of Management Studies Amreli M.B.A. II Semester, hereby declare that, the project

on CHANGING TRENDS OF INVESTMENT PATTERN IN DIFFERENT ASSETS

CLASSESis my own work.

In the partial fulfillment of Master Degree of Business Administration, I had undergone

project work at MARWADI SHARES FINANCE LIMITED, BHAVNAGAR under the

guidance of Dr. VISHAL PATIDAR K. K. Parekh Institute of Management Studies

Amreli and Submitted Gujarat Technological University, Ahmedabad.

This project work is my original work and has not been submitted to any where earlier.

Date: - Signature

Place: - Amreli


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Preface

A practical study is an important part of the syllabus of MBA program. It

gives us an opportunity to relate theoretical knowledge with real corporate situations. It

also helps to improve our analytical skill, communication skill and knowledge.

I have taken my practical training from MARVADI GROUP at Bhavnagar

and I felt this unit is being run superbly by excellent team.

During my research period, I learnt much. I worked with my senior person at

office and various branches managers in the fields. It was really good experience for

me. The reports here presented throw light on the various aspects like research

methodology. With the help of practical knowledge we get the idea about management

and other aspects relating to business environment.

The development of financial resources depends not only on the technical

skill or rather the theoretical skill but being practical matters a lot.

My report is based on the interview taken of the customer or investors in the

field and I have tried to draw a careful and meaningful analysis of data, which are

collected from the field.


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Acknowledgement

It is pleasure on my part in submitting this report. I am thankful to our

university for imparting us with practical studies which in turn will give us practical

knowledge of the business. I express my sincere gratitude towards all those people who

helped me in the preparation of this project, which been a learning experience.

I am thankful to our college authorities for conducting this training. I would

sincerely thank our DIRECTOR VISHAL PATIDAR for imparting me an opportunity to

put me in the stream of practical management. I would also like to thank Mrs. ARPITA

VAGHELA (lecturer) and other all faculty members.

I would like to express grateful appreciation and co-operation received

from Mr.Kamlesh Marwadi and the whole staff of Marwadi shares and finance limited. I

am thankful to owners of the company and operating manager for spending his valuable

time with me and providing necessary information that I required.

I will never forget their kind services and their precious time they have granted me.


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Executive summary

Todays world is the world of globalization. Every one wants to expand its

width. There is a cost of carried out money. It is in a manner of interest rate or in a

opportunities cost in this financial world, those are lot many opportunities available in

the market to invest the money into the various financial instruments like bank deposit,

post office, certificate, shares, mutual funds, properties or in a initial public offering or

say IPO.

Some, the chosen of these options mainly depending upon the two criteria,

First return from investment and second the risk carried out by financial instrument.

In this report, I have tried to find out the changing investment patterns

overtime. I have covered more than a decade for my research work and analyzed the

investors preference for various asset classes over time.


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INDEX

Ch. No Particular Page

No.

1 Company overview 1

1.1 History of Marwadi shares and finance limited 2

1.2 Different services of Marwadi 3

1.3 Mission and vision 5

1.4 Milestones 6

1.5 Company profile 7

2 Investment and risk 8

2.1 What is investment? 9

2.2 Investment in terms of finance 11

2.3 Types of investment option 12

2.4 Risk class definition 19

2.5 Description of general risk 20

3 Research methodology 24

3.1 Introduction 25

3.2 Literature Reviews & Articles 27

3.2 Define the problem 31

3.3 Objective of the study 32

3.4 Limitation of the study 33

3.5 Nature of study 34

3.6 Data collection 35

3.7 Sampling plan 38


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3.8 Data analysis and Interpretation 40

3.9 Questionnaire & survey 55

3.10 Findings 65

3.11 Suggestions 66

3.12 Conclusion 67

3.13 Bibliography 68

4 Appendix 69


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1.1 Introduction of the company

History

Marwadi is a Gujarat based financial service group dealing in equities

commodities broking and portfolio management services. In the last 15 years we have

grown into a network of more than 69 branches with an 1115+ committed professional

people and 743+ channel partners across India. We've kept the faith of over 2 lakhs

investors and it's growing. After establishing supremacy in Gujarat, we now expanding

nationwide and to fuel our growth plans we recently raised capital from UK-based

investment companies.

A convincing index of our customer loyalty is that nearly 75% of our

customers have been with us for a period of more than three years. This means that a

bulk of our customers have subscribed to our services on a long term-basis.

Marwadi Group strength lies in its team of confident, young, talented,

qualified and experienced professionals to carry out different functions under the able

leadership of its management.


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1.2 Introduction Demat Service

Our Depository Participant addresses the needs of retail investor clients of Gujarat. We

were the first corporate DP in Saurashtra. As on date we service 50,000 plus clients

through a well-equipped branch network. We offer online services offered by

NSDL/CDSL. We are affiliated to both NSDL and CDSL in order to give optimum cost

solution to our clients keeping in view the investors needs. We place a high premium

our customer service and prompt reporting in order to ensure integrity of transactions.

Our customer centric schemes have been designed to address the investor needs

relative to element (such as trade execution dematerialization and re materialization)

economical prices.

We are giving following services without any charges :

Demat Confirmation

Remat Confirmation

Rejection of Instruction

Special Transaction Statement as our desire

Allotment of Shares under IPOEvery quater we send the Ledger to each Client

We inimates the renewal of account

Speed - e services client without any additional charges

We are offering special retention service under which client does not need to give the

trade and charges per trade 13 Rs.

MAKE US CUSTODIANS OF YOUR WEALTH AND ENJOY IT GROW


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Security Broking

We facilitate buying and selling of securities on National Stock Exchenge, Mumbai. We

try and make it seemless for our customers by offering the services to transfer securities

through our demat services. Customers are also offered the facility of trading through --

,thereby making it a door step taking our service to customer's door step.

We, offer integrated -- services by bundling all peripheses services together thereby

making securities broking a seemless experience.

Commodity Derivatives

We, at Marwadis, are providers of broking services in Capital Market. With the opening

up of commodities sector and the consequent felt need to provide price stabilization

services, the Govt. mandated host mandated National level Commodity Exchanges. As

part of our effort to broad base services to our customers, we have taken membership

of National level commodity exchanges. A new investment option is commodities.

Until a few months ago this would not have made sense as there was no avenue for

trading in commodities.

We at Marwadis have taken the pioneering step of bringing this to your doorstep. Good

ness met historically prices in commodities are less volatile than equities and bonds,

thus providing an efficient diversification option.

COME AND DISCOVER THE WORLD OF COMMODITIES THROUGH MARWADIS


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1.3 Mission & Vision

" To be a world-class f inancial services provider by arranging all

conceivable financial services under one-roof at affordable costs through cost

effective del ivery systems, and achieve organic growth in business by adding

newer lines of business.


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1.4 Milestones

The company crossed the following milestones to reach its present position as

the leading retail broking house in India.

1992...Marwadi Shares And Finance Pvt. Ltd. was incorporated.

1996...Became a corporate member of National Stock Exchange Of India - (NSE)

1998...Became a member of Saurastra Kutch Stock Exchange (SKSE)

1999...Launched Depository services of Depository Participant under National

Depository Security Ltd. (NSDL)

2000...Commenced Derivative Trading after obtaining registration as Clearing

and Trading Member in NSE.

2003... (MCBPL) Became a corporate member of the National Commodity and

Derivatives Exchange of India Ltd.

2003... (MCBPL) Became a corporate member of The Multi Commodity

Exchange of India Ltd.

2004...Became a corporate member of Bombay Stock Exchange Ltd. (BSE)

2004...Launched Depository Services of Depository Participant under Central

Depository Services (India) Ltd.

2005...Launched Portfolio Management Services

2006...MSFPL converted to Public Limited (Marwadi Shares And Finance

Limited)

2006 The Company raised private equity from ICGU Limited, a wholly owned

subsidiary of India Capital Growth Fund.

2007 The Company raised further private equity from Caledonia Investmentsplc.

1.5 Company profile


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NAME MARWADI SHARES AND FINACE LIMITED

NAME OF

EXCHANGE

National commodity and derivatives exchange ltd

Multi commodity exchange of India ltd

DIVISION Jamnagar, Bhavnagar, Rajkot, Ahmadabad

FORMS OF

ORGANISATIONPRIVATE LIMITED

ESTABLISHING

YEAR1992

TYPES OF

DEALING

Shares, Commodity, Depository

Main dealing DEMAT ACCOUNT

NAME OF

DIRECTORS

Mr. Ketan Marwadi

Mr. Deven Marwadi

Mr. SandeepMarwadi

Mrs. Meera Marwadi

BRANCE

MANAGERMR KAMLESH MARWADI

REGISTERED

OFFICE

MARWADI FINANCE CENTER,

NR.KATHIYAWAD GYMKHANA,

RAJKOT-360 001.

GUJRAT (INDIA)

PHONE NO +91-281-2481313/2468131BANKERS ICICI,DENABANK,BANK OF INDIA , BANK OF BARODA

NO OF

EMPLOYEESMORE THAN 300


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2.1 What is an investment?


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INTRODUCTION OF AN INVESTMENT

Investment is the investing of money or capital in order to gain profitable returns, as

interest, income, or appreciation in value. It is related to saving or deferring

consumption Investment is involved in many areas of the economy, such as business

management and finance no matter for households, firms, or governments. An

investment involves the choice by an individual or an organization such as a pension

fund, after some analysis or thought, to place or lend money in a vehicle, instrument or

asset, such as property, commodity, stock,bond, financial derivatives (e.g. futures or

options), or the foreign asset denominated in foreign currency, that has certain level of

risk and provides the possibility of generating returns over a period of time.

Investment comes with the risk of the loss of the principal sum. The investment that has

not been thoroughly analyzed can be highly risky with respect to the investment owner

because the possibility of losing money is not within the owner's control. The difference

between speculation and investment can be subtle. It depends on the investment

owner's mind whether the purpose is for lending the resource to someone else foreconomic purpose or not.
http://en.wikipedia.org/wiki/Saving_(money)http://en.wikipedia.org/wiki/Consumption_(economics)http://en.wikipedia.org/wiki/Business_managementhttp://en.wikipedia.org/wiki/Business_managementhttp://en.wikipedia.org/wiki/Financehttp://en.wikipedia.org/wiki/Real_estatehttp://en.wikipedia.org/wiki/Commodityhttp://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Bondhttp://en.wikipedia.org/wiki/Financial_derivativeshttp://en.wikipedia.org/wiki/Futureshttp://en.wikipedia.org/wiki/Optionshttp://en.wiktionary.org/wiki/principal#Nounhttp://en.wikipedia.org/wiki/Speculationhttp://en.wikipedia.org/wiki/Speculationhttp://en.wiktionary.org/wiki/principal#Nounhttp://en.wikipedia.org/wiki/Optionshttp://en.wikipedia.org/wiki/Futureshttp://en.wikipedia.org/wiki/Financial_derivativeshttp://en.wikipedia.org/wiki/Bondhttp://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Commodityhttp://en.wikipedia.org/wiki/Real_estatehttp://en.wikipedia.org/wiki/Financehttp://en.wikipedia.org/wiki/Business_managementhttp://en.wikipedia.org/wiki/Business_managementhttp://en.wikipedia.org/wiki/Business_managementhttp://en.wikipedia.org/wiki/Consumption_(economics)http://en.wikipedia.org/wiki/Saving_(money)


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Investment is a term frequently used in the fields of economics, business

management and finance. It can mean savings alone, or savings made through delayed

consumption.Investment can be divided into different types according to various theories and

principles.

When an asset is bought or a given amount of money is invested in the

bank, there is anticipation that some return will be received from the investment in the

future.

There are a number of definitions of investment. While dealing with the

various options of investment, the defining terms of investment need to be kept in mind.

According to economic theories, investment is defined as the per-unit

production of goods, which have not been consumed, but will however, be used for the

purpose of future production. Examples of this type of investments are tangible goods

like construction of a factory or bridge and intangible goods like 6 months of on-the-job

training. In terms of national production and income, Gross Domestic Product (GDP)

has an essential constituent, known as gross investment.

Investment in terms of Business Management

According to business management theories, investment refers to tangible assets like

machinery and equipments and buildings and intangible assets like copyrights orpatents and goodwill. The decision for investment is also known as capital budgeting

decision, which is regarded as one of the key decision.


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2.2 Investment in terms of finance

In finance, investment refers to the purchasing of securities or other

financial assets from the capital market. It also means buying money market or real

properties with high market liquidity.

Some examples are gold, silver, real properties, and precious items.

Financial investments are in stocks, bonds, and other types of security investments.

Indirect financial investments can also be done with the help of mediators or third

parties, such as pension funds, mutual funds, commercial banks, and insurance

companies

.

Personal Finance:

According to personal finance theories, an investment is the implementation of money

for buying shares, mutual funds or assets with capital risk

Real Estate:

According to real estate theories, investment is referred to as money utilized for buying

property for the purpose of ownership or leasing. This also involves capital risk.

Commercial Real Estate:

Commercial real estate involves a real estate investment in properties for commercial

purposes such as renting.

Residential Real Estate:

This is the most basic type of real estate investment, which involves buying houses as

real estate properties.


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In finance, the purchase of a financial product or other item ofvalue with an

expectation of favorable future returns. In general terms, investment means the use

money in the hope of making more money.

In other words,

Business, in the purchase by a producer of a physical good, such as

durable equipment orinventory, in the hope of improving future business.

2.3 Investment options

An investor has numerous investment options to choose from, depending

on his risk profile and expectation of returns. Different investment options represent a

different risk-reward trade off. Low risk investments are those that offer assured, but

lower returns, while high risk investments provide the potential to earn greater returns.

Hence, an investors risk tolerance plays a key role in choosing the most suitableinvestment.

Banks today provide a range of investment options, including international

investing, investing in commodities, stocks, bonds, precious metals and investment

funds. Other options for investing include certificates of deposit, futures and investment

clubs.

All investment options have their inherent risk and benefits. For instance,

international investing is prone to social, political, economic and currency risks, while

fixed income investing is prone to interest risks.
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TYPES OF INVESTMENT OPTIONS

Here are some popular investment options and their inherent benefits and dangers:

CASH AND FIXED INTEREST

Termed as conservative investments or low risk/low return investments, these provide

assured returns. However, the shortfall is their exposure to inflation. That is, the returns

could be completely wiped out owing to the erosive impact of inflation on money.

Investing in cash or money market funds may get you higher returns.

BONDS

Bonds represent money that an investor lends to a bond issuer. The issuer

may be the government or corporate bodies. While corporate bonds typically offer

greater returns, they also represent higher risk. In case the company declares

bankruptcy, the bondholders may not be repaid the principal invested. Hence, those

with low risk appetites should opt for government bonds, which offer assured returns

and regular income.

EQUITIES OR SHARES

The stock market offers the opportunity to enjoy very high returns.

However, it also exposes investors to high risk. Having a long-term horizon can

minimize the risk, since the stock market is volatile in the short term. Investors can

either invest in individual companies or across different companies through equity

mutual funds, which are managed by professionals and do not require an investor to

conduct extensive research.


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NATIONAL SAVING CERTIFICATE

NSC is backed by Govt. of India so it is a safe investment method. Lock in

period is 6 years. Minimum amount is Rs100 and no upper limit. You get 8% interest

calculated twice a year. NSC comes under Section 80C so you will get an income tax

deduction up to Rs 1, 00,000. From FY 2005-'06 onwards interest accrued on NSC is

taxable.

PUBL IC PROVIDENT FUND (PPF)

PPF is another form of investment backed by Govt. of India. Minimum

amount is Rs500 and maximum is Rs70, 000 in a financial year. A PPF account can be

opened in a head post office, GPO and selected branches of nationalized banks. PPF

also comes under Section 80C so individuals could avail income tax deduction up to Rs

1, 00,000. Lock in period for PPF is 15 years and interest rate is 8%. Unlike NSC, PPF

interest rate is calculated annually. Both PPF and NSC considered being best

investment option as it is backed by Government of India.

STOCK MARKET

Investing in share market is another investment option to get more returns.

But share market investment is volatile to market conditions. Before investing you

should have a thorough knowledge about its operation.


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BANKS

Considered as the safest of all options, banks have been the roots of the

financial systems in India. Promoted as the means to social development, banks in India

have indeed played an important role in the rural enlistment. For an ordinary person

though, they have acted as the safest investment avenue wherein a person deposits

money and earns interest on it. The two main modes of investment in banks, savings

accounts and fixed deposits have been effectively used by one and all. However, today

the interest rate structure in the country is headed southwards, keeping in line with

global trends. With the banks offering little above 9 percent in their fixed deposits for

one year, the yields have come down substantially in recent times. Add to this, the

inflationary pressures in economy and you have a position where the savings are notearning. The inflation is creeping up, to almost 8 percent at times, and this means that

the value of money saved goes down instead of going up. This effectively mars any

chance of gaining from the investments in banks.

POST OFFICE SCHEMES

Just like banks, post offices in India have a wide network. Spread across the

nation, they offer financial assistance as well as serving the basic requirements of

communication. Among all saving options, Post office schemes have been offering the

highest rates. Added to it is the fact that the investments are safe with the department

being a Government of India entity. So the two basic and most sought of features those

return safety and quantum of returns was handsomely taken care of. Though certainly

not the most efficient systems in terms of service standards and liquidity, these have still

managed to attract the attention of small, retail investors. However, with the government

announcing its intention of reducing the interest rates in small savings options, this

avenue is expected to lose some of the investors. Public Provident Funds act as options

to save for the post retirement period for most people and have been considered good

option largely due to the fact that returns were higher than most other options and also

helped people gain from tax benefits under various sections. This option too is likely to

lose some of its sheen on account of reduction in the rates offered.


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COMPANY FIXED DEPOSITS

Another often-used route to invest has been the fixed deposit schemes

floated by companies. Companies have used fixed deposit schemes as a means of

mobilizing funds for their operations and have paid interest on them. The safer a

company is rated, the lesser the return offered has been the thumb rule. However, there

are several potential roadblocks in these. First of all, the danger of financial position of

the company not being understood by the investor lurks. The investors rely on

intermediaries who more often than not, dont reveal the entire truth. Secondly, liquidity

is a major problem with the amount being received months after the due dates.

Premature redemption is generally not entertained without cuts in the returns offered

and though they present a reasonable option to counter interest rate risk (especially

when the economy is headed for a low interest regime), the safety of principal amount

has been found lacking. Many cases like the Kuber Group and DCM Group fiascoes

have resulted in low confidence in this option.

The options discussed above are essentially for the risk-averse, people who

think of safety and then quantum of return, in that order. For the brave, it is dabbling inthe stock market. Stock markets provide an option to invest in a high risk, high return

game. While the potential return is much more than 10-11 percent any of the options

discussed above can generally generate, the risk is undoubtedly of the highest order.

But then, the general principle of encountering greater risks and uncertainty when one

seeks higher returns holds true. However, as enticing as it might appear, people

generally are clueless as to how the stock market functions and in the process can

endanger the hard-earned money.

For those who are not adept at understanding the stock market, the task of generating

superior returns at similar levels of risk is arduous to say the least. This is where Mutual

Funds come into picture.


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Mutual Funds are essentially investment vehicles where people with

similar investment objective come together to pool their money and then invest

accordingly. Each unit of any scheme represents the proportion of pool owned by theunit holder (investor). Appreciation or reduction in value of investments is reflected in

net asset value (NAV) of the concerned scheme, which is declared by the fund from

time to time. Mutual fund schemes are managed by respective Asset Management

Companies (AMC). Different business groups/ financial institutions/ banks have

sponsored these AMCs, either alone or in collaboration with reputed international firms.

Several international funds like Alliance and Templeton are also operating

independently in India. Many more international Mutual Fund giants are expected to

come into Indian markets in the near future.

The benefits on offer are many with good post-tax returns and reasonable safety being

the hallmark that we normally associate with them. Some of the other major benefits of

investing in them are:

MUTUAL FUNDS

Invest money, not your time

Transact in a wide range of mutual funds. Mutual funds are an attractive means of taxes

and diversifying your investment portfolio. So if you are looking to invest mutual funds ,

Marwadi offers you a host of mutual fund choices under one roof; backed by in-depth

information and research to help you invest smartly.

Mutual Fund companies collect money from investors and invest in

share market. Investing in mutual funds is also subject to market risks but return is

good.


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REAL ESTATE INVESTMENT

You can use the real estate for personal residential or commercial use or

can rent or lease it for commercial or residential purposes. Here you get a good profit

margin and at the same time your assets are increased.

POTENTIAL OF RETURNS

Returns in the mutual funds are generally better than any other option in

any other avenue over a reasonable period of time. People can pick their investment

horizon and stay put in the chosen fund for the duration. Equity funds can outperform

most other investments over long periods by placing long-term calls on fundamentally

good stocks. The debt funds too will outperform other options such as banks. Though

they are affected by the interest rate risk in general, the returns generated are more as

they pick securities duration that have different yields and so are able to increase the

overall returns from the portfolio.

LIQUIDITY

Fixed deposits with companies or in banks are usually not withdrawn premature

because there is a penal clause attached to it. The investors can withdraw or redeem

money at the Net Asset Value related prices in the open-end schemes. In closed-end

schemes, the units can be transacted at the prevailing market price on a stock

exchange. Mutual funds also provide the facility of direct repurchase at NAV related

prices. The market prices of these schemes are dependent on the NAVs of funds and

may trade at more than NAV (known as Premium) or less than NAV (known asDiscount) depending on the expected future trend of NAV which in turn is linked to

general market conditions. Bullish market may result in schemes trading at Premium

while in bearish markets the funds usually trade at Discount. This means that the money

can be withdrawn anytime, without much reduction in yield. Some mutual funds

however, charge exit loads for withdrawal within a period.


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RISK ASSOCIATED WITH EVERY INSTRUMENT

Financial markets have a strongly volatile character. The prices of the traded

instruments are influenced by many and diverse factors, which, among others, are:

changes in the ratio of demand and supply; world trade; tax, monetary, regulatory and

international policy of the countries; important economic and political news, changes in

the interest rate levels; operations of the central banks and the big players, devaluation

of the currencies; beliefs and expectations, as well as many other factors.

2.4 Risk class - definition:

1. There are no fluctuations in the value of the investment, except the usual risk

2. Slight fluctuations in the value of the investment (up to 10% annually, but higher

fluctuations are possible);

3. Average level of fluctuations in the value of the investment (over 10% annually,

where in some cases the complete loss of the invested capital is possible);

4. Speculative investment, which may lead to the complete loss of the invested

capital, because the client strives to take advantage of the high profit potential;

5. Extremely risky investment, which may involve further financial risks for the client

in addition to the complete loss of the invested capital.


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2.5 DESCRIPTION OF GENERAL RISKS

Except the specific risks for every financial instrument mentioned

above, there are general risks which influence every financial instrument and every

investment.

MARKET RISK

The market risk is the risk of loss in value of the investment due to the

movements of the market factors - prices and financial instruments, interest rates,

currency exchange rates and others. The market prices of the investors may vary due to

changes in the economic and market environment, the money policy of the central

banks, the business activity of the issuers, the demand and supply of the market of the

respective instrument.

INTEREST RATES

This is the risk of the changes in the market interest rates having anunfavorable effect on the profit or the value of the instrument. The changes in the

interest rate levels may endanger the financial instruments owners with the risk of

capital loss. The impact of the risk is different for the respective financial instruments.

CURRENCY RISK

The investments in instruments, denominated in a foreign currency, may be unfavorably

affected by the lowering of the exchange rate of this currency against another. The

increase or decrease in the currency exchange rates may cause losses or profits for the

securities in the currency they are denominated in.


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ASSIMILATION RISK

This is the risk for investors in a given bond not to be able to find the same investment

market conditions, if a given investment has been ceased, in the event that the issuer of

the bond pays its obligation before the maturity date.

OPERATIONAL RISK

This is the risk from direct or indirect losses as a result of inadequate internal control, a

human action, organization or external event. This risk covers human errors, intentional

damage by employees, crash of the information systems, problems connected to the

managing of human resources, company lawsuits, as well as external events such as

accidents, fires, floods and others.

LIQUIDITY RISK

The liquidity risk arises in situations, in which a party interested in selling a given asset,

is unable to do so, because no one on the market is willing to trade with this asset.

There is demand but no supply or vice versa.

RISK OF VOLATILITY

This is the risk connected with the price movements of a given financial instrument. The

volatility is high, if the financial instrument is subject to large price fluctuations in a given

period of time. The risk of volatility is calculated as the difference between the lowest

and highest prices of financial instruments for the given period of time.


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CREDIT RISK

This is the possibility that the contracting party may not fulfill willingly or may not be able

to fulfill the obligations as agreed upon in the contract. The investors need to assess the

quality of the issuers of financial instruments, as well as their ability to repay their

obligations.

SETTLEMENT RISK

This is the risk that a settlement in a payment system may not be

realized, due to the inability of a participant in the payment system to fulfill its

obligations. This risk is equal to the difference between the price of a given asset and

the theoretical date of execution and the price of the asset on the date of execution.

This is the difference between the settlement price approved for the financial instrument

and the current market price at the time of settlement when the difference may lead to

loss. In some situations the settlement procedure may be influenced by the number of

transactions and in this way may prevent their execution. The impossibility for the

settlement to be fulfilled due to similar problems may prevent the investors from

advantageous investment opportunities and may lead to loss. The settlement risk may

arise both as a credit and a liquidity risk.

CUSTODY RISK

This kind of risk arises for the investments in a given market, mostly in

the developing markets, on which the rules and regulations concerning the system of

custody services may be less developed in the area of investor protection compared to

those markets which have strict custody rules. The assets on these markets entrusted

to the custodians, where such are necessary, may be subject to risks connected with

the impossibility of the custodian to perform his obligations. This risk is magnified when

there is no system for investor compensation on the respective market, or, if such a

system exists, a given investor is not covered by the protection offered by the system.


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LEGAL RISK

The risk from insecurity as a result of legal actions or insecurity regarding the

applicability of contracts, legal or sub-legal acts, for instance, lawfulness of the contract,

legal authorization of the party to enter into contract.

POLITICAL RISK:

This is the risk of the government imposing new taxes, regulative or legal obligations or

restriction on financial instruments, which a given investor already possesses. For

example, the government may decide to prohibit asset repatriation from the country.

Trading with financial instruments hides considerable risks and is not suitable for every

investor. Trading on the financial markets is not suitable for investors seeking a stable

income, because the profits from such an activity are irregular and unstable.

RATIONAL FOR STUDY:

From the above data, we can see that the varieties of instruments are

available for investment bearing different risks. It is upon an investor to select his

desired investment instrument based on his risk profile. The risk profile is inturn

dependent on the income level of investors.

The per capita income of residents of India is rising and so is their personal disposable

income. Along with income rises the risk appetite. Hence I have tried to study the

changing preference of asset class for the investors.


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3.1 RESEARCH METHODOLOGY

WHAT IS RESEARCH?

Research is scientific or critical investigation aimed at discovering and

interpreting facts. Research may use the scientific method, but need not do so.

What is research?

Research in common parlance refers to a search for knowledge. Once can also

define research as a scientific and systematic search for pertinent information on a

specific topic. The advanced learners dictionary of current English lays down the

meaning of research as A careful investigation or inquiry especially through search for

new facts in any branch of knowledge. Redman and Mary define research as a

systematized efforts to gain new knowledge.

Research means not to search out which is already searched but it is any

systematic objective oriented and organized inquiry undertaken to provide information

for sound and timely decision. It is an honest impartial and open study conducted by the

person of group of person with experience and scientific methods. So, in simple word

we can say that research is the inquiry of discovery


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WHAT IS SCIENTIFIC RESEARCH?

Scientific research relies on the application of the scientific method, a harnessing

of curiosity. This research provides scientific information and theories for the

explanation of the nature and the properties of the world around us. It makes practical

applications possible. Scientific research is funded by public authorities, by charitable

organizations and by private groups, including many companies. Scientific research can

be subdivided into different classifications according to their academic and application

disciplines.

WHAT IS RESEARCH METHODOLOGY?

Research methodology is one kind of the methods of research by which the

researcher can easily search findings and find analysis which he can do in research.

Research methodology is the process of research. Research methodology is a way to

systematically solve the research problem.

Research is the process of finding facts. These facts will lead to knowledge.

Research is done by using what is already known. Additional knowledge can beobtained by proving existing theories or systems, and by trying to better explain

observations.


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3.2 What is l i teratu re review?

It ensures that the key issues are identified, focuses on measurement specific

topic or subject than the detail of specific measures. It involves different views of

different authors about any subject. It plays an important role to use as a

reference to prepare any project and to get the idea about given research. It is

suggested that themes emerging from the literature can be utilized as a

framework to give practitioners and researchers a direction for future exploration

of the concept spiritually.

Literature Reviews & Articles

Internat ional stock m arket eff ic iency and integrat ion: a stud y of

eighteen nat ions

Article Abstract:

The globalization of the securities market is bringing increased attention to stock market

throughout the world. A study has been conducted to assess the interrelationship

among eighteen national stock markets by using unit root and cointegration test for the

period of 1961-1992. In terms of market efficiency, the results from unit root tests

suggest that the world equity markets are weak-form efficient. The cointegration test

results indicate that there are only a small number of significant cointegrating vectors

over the last three decades since 1961.

Author: Chan, Kam C., Gup, Benton E., Pan, Ming-Shiun

Publisher: Blackwell Publishers Ltd.

Publication Name: Journal of Business Finance and AccountingSubject: Business

ISSN: 0306-686X

Year: 1997


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Read more:http://www.faqs.org/abstracts/Business/International-stock-market-

efficiency-and-integration-a-study-of-eighteen-nations.html#ixzz0uIIuOtPs

Port fol io inef f ic iency and th e cross-sect ion o f expected returns

Article Abstract:

The Capital Asset Pricing Model implies that (i) the market portfolio is efficient and (ii)

expected returns are linearly related to betas. Many do not view these implications as

separate, since either implies the other, but we demonstrate that either can hold nearly

perfectly while the other fails grossly. If the index portfolio is inefficient, then the

coefficients and R(super)2 from an ordinary least squares regression of expected

returns on betas can equal essentially any values and bear no relation to the indexportfolio's mean-variance location. That location does determine the outcome of a

mean-beta regression fitted by generalized least squares. (Reprinted by permission of

the publisher.)

Author: Stambaugh, Robert F., Kandel, Shmuel


Publication Name: Journal of Finance

Subject: Business

ISSN: 0022-1082

Year: 1995

Investments, Capital assets pricing model, Capital asset pricing model

Read more:http://www.faqs.org/abstracts/Business/Portfolio-inefficiency-and-the-cross-

section-of-expected-returns.html#ixzz0uIK9xrC2
http://www.faqs.org/abstracts/Business/International-stock-market-efficiency-and-integration-a-study-of-eighteen-nations.html#ixzz0uIIuOtPshttp://www.faqs.org/abstracts/Business/International-stock-market-efficiency-and-integration-a-study-of-eighteen-nations.html#ixzz0uIIuOtPshttp://www.faqs.org/abstracts/Business/International-stock-market-efficiency-and-integration-a-study-of-eighteen-nations.html#ixzz0uIIuOtPshttp://www.faqs.org/abstracts/Business/International-stock-market-efficiency-and-integration-a-study-of-eighteen-nations.html#ixzz0uIIuOtPshttp://www.faqs.org/abstracts/Business/Portfolio-inefficiency-and-the-cross-section-of-expected-returns.html#ixzz0uIK9xrC2http://www.faqs.org/abstracts/Business/Portfolio-inefficiency-and-the-cross-section-of-expected-returns.html#ixzz0uIK9xrC2http://www.faqs.org/abstracts/Business/Portfolio-inefficiency-and-the-cross-section-of-expected-returns.html#ixzz0uIK9xrC2http://www.faqs.org/abstracts/Business/Portfolio-inefficiency-and-the-cross-section-of-expected-returns.html#ixzz0uIK9xrC2http://www.faqs.org/abstracts/Business/Portfolio-inefficiency-and-the-cross-section-of-expected-returns.html#ixzz0uIK9xrC2http://www.faqs.org/abstracts/Business/Portfolio-inefficiency-and-the-cross-section-of-expected-returns.html#ixzz0uIK9xrC2http://www.faqs.org/abstracts/Business/International-stock-market-efficiency-and-integration-a-study-of-eighteen-nations.html#ixzz0uIIuOtPshttp://www.faqs.org/abstracts/Business/International-stock-market-efficiency-and-integration-a-study-of-eighteen-nations.html#ixzz0uIIuOtPs


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On the predictabi l i ty of sto ck returns : an asset-al locat ion

perspect ive

Article Abstract:

Sample evidence about the predictability of monthly stock returns is considered from the

perspective of a risk-averse Bayesian investor who must allocate funds between stocks

and cash. The investor uses the sample evidence to update prior beliefs about the

parameters in a regression of stock returns on a set of predictive variables. The

regression relation can seem weak when described by usual statistical measures, but

the current values of the predictive variables can exert a substantial influence on the

investor's portfolio decision, even when the investor's prior beliefs are weighted againstpredictability. (Reprinted by permission of the publisher.)

Author: Stambaugh, Robert F., Kandel, Shmuel


Publication Name: Journal of Finance

Subject: Business

ISSN: 0022-1082

Year: 1996

Analysis, Forecasts and trends, Stock price forecasting

Read more:http://www.faqs.org/abstracts/Business/Portfolio-inefficiency-and-the-cross-

section-of-expected-returns.html#ixzz0uIKS5bak

An analys is of decis ion un der r isk

Article Abstract

Analysis of decision making under risk has been dominated by expected utility theory

which generally accounts for people expected utility theory as a descriptive model of

decision making under risk and argues that common forms of utility theory are not

adequate and proposes an alternatives theory of choice under risk and shows results of
http://www.faqs.org/abstracts/Business/Portfolio-inefficiency-and-the-cross-section-of-expected-returns.html#ixzz0uIKS5bakhttp://www.faqs.org/abstracts/Business/Portfolio-inefficiency-and-the-cross-section-of-expected-returns.html#ixzz0uIKS5bakhttp://www.faqs.org/abstracts/Business/Portfolio-inefficiency-and-the-cross-section-of-expected-returns.html#ixzz0uIKS5bakhttp://www.faqs.org/abstracts/Business/Portfolio-inefficiency-and-the-cross-section-of-expected-returns.html#ixzz0uIKS5bakhttp://www.faqs.org/abstracts/Business/Portfolio-inefficiency-and-the-cross-section-of-expected-returns.html#ixzz0uIKS5bakhttp://www.faqs.org/abstracts/Business/Portfolio-inefficiency-and-the-cross-section-of-expected-returns.html#ixzz0uIKS5bak


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3.2 PROBLE DEFINE

Marwadi shares and finance ltd is engaged in the commercial market. The

company has set up its different location according to the condition of particular market

and economy. All the Branches are running on the highest market level and provide

good commercial and financial support. Company has also provided good market share

and good service in commercial market.

Research problem in general, referce to some difficulties, which researcher

experience in the contexts of either a theoretical or a practical situation and wants toobtain a solution of the same. Quite often we all hear that a problem clearly stated is a

problem half solved.

From the above we can say that it is necessary for every researcher to define

the problem correctly. If the problem of research is not define in right way than there is

chance a getting false results from the survey and research objective are not satisfied in

proper way.

The research topic is changing trends of investment

patterns in differentassets classes in whole market.


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3.3 RESEARCH OBJECTIVES

The purpose of research is to discover answer to questions through the

application of scientific procedure the main aim of research is to find out the truth which

is hidden and which has not been discovering as yet so is research study has its own

specific purpose of objectives. The objective of this research study as under:

Objective of my project:

1. To understand the present investment patterns among investors.

2. The nature, extent and effect of psychological influences on choice of securities

which changes with the passage of time.

3. To analysis and study the various investment tools available for investment.

4. The nature, extent and effect of sociological influences on choices, including

background, personal and social expectations, previous educational experience andsocial role.

5. To compare the trends of present investors to old investor with earlier trends.


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3.4 LIMITATION OF THE STUDY

The major factor constraining the training programmed was the time duration

mentioned by the company.

Every manager is not present any time so some difficulties is arise for the getting

the important information.

Some important and secret matter was not disclosed as it was against rules and

regulation.

The training was complained with in the particular limit area so location was the major

constrain factor.


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3.5 NATURE OF STUDY

Despite the difficulty of establishing an entirely satisfactory classification

system. It is helpful to classify marketing research project and basis of the fundamental

objective of the research consideration of different types. There applicability their

strength and their weakness will help the student to select the type best suited to

To general types of research are

EXPLORATORY RESEARCH

CONCLUSIVE RESEARCH

Exploratory research seek to history of new ideas

new relationship while conclusive research are design to helped the executive choose

among various possible courses of action that is to make decision.

Here the nature of Marwadi shares and finance

research study is exploratory one because exploratory research study are normally

concerned with finding out general nature of problems and different variable that are

related to problem this kind of research are flexible convenient and done by simple

random survey it gives subjective evaluation on the research.


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3.6 DATA COLLECTION

Good decision requires good data just as researcher must carefully evaluate

the quality of secondary information.

PRIMARY DATA

Primary data which are collected for the first time at this

happen to be original in character researcher also must take care when collection of

primary data assure that it will be relevant accurate current and unbiased.

I got primary data of Marwadi shares and finance ltd. for my

research purpose I have collected primary data through questionnaires method we

contacted 50 person individual and collected out of data.

SECONDARY DATA

Secondary data on the other hand are these which have already

been collected by someone in the post for this research study both type of data are

required.

I got secondary data of Marwadi shares and finance ltd, collected

though on internet. Or online database search might provide information and another

secondary data through advertising media, companys catalogues, etc.


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Survey of method of data collection in marketing research can be classified by to major

characteristic. Mod of data collection is either structured or unstructured depending

upon whether a formal information schedule has been formulated not. And interview is

also either directed or in directed. As a result of whether the purpose of questions asked

is intentionally disguised or not.

My method of data collection was structured and direct from internet.

A formal questionnaire consists of structure and direct form of

questions. For this research study a primary data are collected through personalinterview of interview method.

For collecting primary data and secondary data both are main two important methods:

OBSERVATION METHOD

INTERVIEW


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SOURCE OF DATA

In this case the source of my data is questionnaire

method. I collected necessary information from many places which are listed below.

FROM THE COMPANY IT SELF:

Company gave me information about different types shares and financial system

information and also gave the necessary information needed for preparation of my

report of Marwadi shares and finance ltd.

FROM THE INTERNET:

When I faced trouble gathering mass of information then internet was useful to me.

I visited the www.marwadionline.com sites and also few other sites to collect some

Important data.

DATA THROUGH QUESTIONNARE:

I have collected necessary data through question method. I met 50 peoples

to fulfill the objective of research study.

I had also chance to meet Mr.Kamlesh Pandya who is at present manager

in Marwadi shares and finance limited and I took advice and tips from Mr.Nirav

Marwadi. I was asked many other experience personality were my source of information

on the bases of which I prepaid Marwadi shares and finance report.


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3.7 SAMPLING PLAN

Sampling plan is a obtaining a sample from a given population. It

refers to the technique or the procedure the researcher would adoption selecting items

for the sample. A sample design is too determined before data are collected. There are

many designs from which a researcher can choose.

Some designs are relatively more precise and easier to apply them

others. Researcher must prepare a sample design, which should be reliable and

appropriate for his research study.

TARGET POPULATION:

The population for this research study is consists of residents

of bhavnbagar district at near by area where are construction work are currently in

bhavnagarcity

SAMPLE SIZE:

It has been decided that the sample will consists from 50 units.

SAMPL ING METHOD:

The sample has been simple randomly sampling in order to

facilitate unbiased representation.


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RESEARCH METHOD PROCESS

The research process is start with the situation analysis and formulation of

hypotheses selecting from among various methods of research scope of the study, data

collection, data analysis and suggestion & solution. Finally it ends in a research report.

Flow chart are as following.

Situation Analysis

Formulation of Hypotheses

Significance of Problem

Scope of the Study

Data Collection

Data Processing

Data Analysis

Suggestion and Solutions

Report writing

Verification and predictions


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3.8 Data analysis and interpretation

1. Net domestic saving

Household Sector

YearFinancialSavings

PhysicalSavings

TotalPrivate

CorporateSector

PublicSector

GrossDomesticSavings

NetDomesticSavings

1989-90 37998 44767 82765 11845 11482 106092 60525

1990-91 49640 55149 104789 15164 10057 130010 78932

1991-92 62101 41394 103495 20304 17290 141089 79118

1992-93 65367 57948 123315 19968 16399 159682 87553

1993-94 94738 54796 149534 29866 10533 189933 109050

1994-95 120733 68057 188790 35260 23412 247462 153640

1995-96 105719 95296 201015 59153 30834 291002 179876

1996-97 141661 79312 220973 62209 29886 313068 184677

1997-98 146777 123531 270308 65769 27429 363506 219757

1998-99 180346 149414 329760 68856 -8869 389747 227545

1999-00 206602 205914 412516 87234 -15494 484256 302835

2000-01 215219 239634 454853 81062 -36882 499033 297215

2001-02 247476 256689 504165 76906 -46186 534885 306588

2002-03 253255 309985 563240 99217 -15936 646521 396014

2003-04 313260 350804 664064 127100 29521 820685 540637

2004-05 317546 399328 716874 212048 68951 997873 668832

2005-06 420974 443679 864653 276550 86823 1228026 847714

2006-07 482822 512076 994898 342284 137926 1475108 1038071

2007-08 553289 596846 1150135 416936 212543 1779614 1270165


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Net Domestic Savings

0

200000

400000

600000

800000

1000000

1200000

1400000

1989

-90

1991

-92

1993

-94

1995

-96

1997

-98

1999

-00

2001

-02

2003

-04

2005

-06

2007

-08

Net Domestic Savings

Conclusion: -

From the above data of all the kinds of savings we get the net domestic saving are

constantly increases from 1989-90 to 2007-08 round about 2000% Net domestic

savings is constantly year to year increases in best way. In last year net domestic

savings is 1270165. We can see from above chart that initial years net domestic

savings is very low but after continuous increase level this situation is best for the

economy and stock market.


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2. Asset under management of mutual fund

TABLE 86 : ASSETS UNDER MANAGEMENT OF MUTUALFUNDS

(Rupees crore)

Year (End-March) Amount

1997 85822

1998 97228

1999 68193

2000 107946

2001 90587

2002 100594

2003 109299

2004 139615

2005 149600

2006 231862

2007 326292

2008 505152

2009 417300


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Amount

0

100000

200000

300000

400000

500000

600000

1996

-97

1997

-98

1998

-99

1999

-00

2000

-01

2001

-02

2002

-03

2003

-04

2004

-05

2005

-06

2006

-07

2007

-08

2008

-09

Amount

Conclusion: -

From the above data of asset under the management of mutual fund we get the

investment in the RS. In this data the year 1997-98 to 2003-04 the asset is fluctuating

and then after it is constantly increases from 2004-05 to 2008-09. Asset under the

mutual fund management in 1997 year rs. 85822 to 2009 year is increased rs. 417500.

Mutual fund is one of the best options for the investment purpose. Mutual fund is most

important role play in the assets level and also useful in the return purpose and security

purpose.


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3. Small saving

TABLE 127 : SMALLSAVINGS

(Rupeescrore)

Total Deposits Total Certificates Public Provident Fund Total

Year Receipts Outstanding Receipts Outstanding Receipts Outstanding Receipts Outstanding

1990-91 9455 17022 8214 33257 0 0 17669 50279

1991-92 10551 20255 6687 35744 0 2596 17238 58595

1992-

93 10151 21694 7414 38788 170 466 17735 609481993-94 12229 23653 11642 43383 206 660 24077 67696

1994-95 15791 28066 18526 54244 350 1027 34667 83337

1995-96 15920 30248 16828 62452 0 1028 32748 93728

1996-97 16428 31800 16680 72839 504 1472 33612 106111

1997-98 22622 38274 23668 86065 645 2416 46935 126755

1998-

99 27621 47124 27182 104833 1017 3339 55820 1552961999-00 37053 60639 31237 122247 1405 4624 69695 187510

2000-01 44869 80654 33044 138041 1398 6392 79311 225087

2001-02 51746 105078 28078 149667 1929 8111 81753 262856

2002-03 70214 140216 33051 163421 2337 10156 105602 313793

2003-04 94272 188907 39170 174563 2528 12267 135970 375737

2004-

05 122616 251665 33369 191794 2534 14273 158519 4577322005-06 130447 306986 39812 203771 3024 16872 173283 527629

2006-07 116303 332130 34532 212785 4065 19457 154836 564372

2007-08 104250 324077 21364 208976 3347 21358 123652 509411

2008-09 118785 317518 21954 204064 2940 22758 143668 544340


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Outstandings

0

100000

200000

300000

400000

500000

600000

1990

-91

1992

-93

1994

-95

1996

-97

1998

-99

2000

-01

2002

-03

2004

-05

2006

-07

2008

-09

Outstandings

Conclusion: -

From the above data of small saving in this data the year 1990-91 to 2007-08 are

increases constantly from the starting. In the starting it was 50279 and in the end it was

544340 so we can say that it is increases round about 1300%. Small savings is most

important function in commercial way. Small savings is most important role play in the

share market or stock market.we can see that from above chart that small savings is

decreases in year 2006-2007 it was 509411 but after small savings is increases way in

year 2008-2009 it was 544340.


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4. Commercial Banks

TABLE 50 : SAVINGS DEPOSITS WITH COMMERCIAL BANKS(Rupees crore)

Year (Ason last

reportingFriday)

Scheduled Commercial BanksNon-Scheduled

CommercialBanks

Indian Banks Foreign Banks Total Banks

1990-91 49542 959 50501 31

1991-92 55554 1348 56902 31

1992-93 57256 1317 58573 30

1993-94 69434 1718 71151 19

1994-95 89019 2305 91324 20

1995-96 99347 2514 101861 -

1996-97 112570 2875 115445 -

1997-98 136770 3194 139964 -

1998-99 160889 3836 164725 -

1999-00 187173 4727 191900 -

2000-01 217452 5530 222982 -

2001-02 272119 6988 279107 -

2002-03 302816 8748 311565 -

2003-04 373137 12232 385369 -

2004-05 443573 15045 458618 -

2005-06 556303 18827 575130 -

2006-07 649586 21839 671425 -

2007-08 747189 25093 772282 -

2008-09 874046 26921 900967 -


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Total Banks

0

100000

200000

300000

400000500000

600000

700000

800000

900000

1000000

1

991

-92

1

993

-94

1

995

-96

1

997

-98

1

999

-00

2

001

-02

2

003

-04

2

005

-06

2

007

-08

Total Banks

Conclusion: -

From the above data of commercial bank from the year 1990-91 to 2008-09 is increases

constantly from the starting. In the starting it was 50501 and in the end it is 900967 so

we can say that it is increases round about 1800%.Saving deposit with commercial banks is year to year constantly upward, we

can see above chart, trend of line continuous increase.


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5. Growth saving and investment rate

.

Annual Growth Rate

Rateof

GDS

Rateof

NDS

Rateof

GDCF

Rate ofNDCF

GDPat

FactorCost

NDP atFactor

Cost

GNP atFactor

Cost

NNP atFactor

Cost

PerCapita

NNP

New Series (Base : 1999-2000)

1990-9116.5 17.0 16.3 16.8 14.4 22.8 15.2 26.0 18.7

1991-9215.4 14.7 15.1 14.4 12.1 21.5 13.3 22.1 13.9

1992-9314.7 14.5 14.7 14.5 12.4 21.2 12.9 23.1 14.9

1993-9416.2 16.7 16.5 17.0 14.3 21.9 13.9 22.5 14.5

1994-9516.8 16.9 16.9 17.0 14.7 24.4 16.7 25.5 18.0

1995-9617.1 16.9 17.3 17.2 14.9 24.4 16.6 26.2 18.6

1996-9716.4 16.5 16.6 16.7 14.5 22.7 14.8 24.0 16.2

1997-9811.2 11.1 11.3 11.2 9.2 23.8 15.9 25.3 17.5

1998-9915.3 15.6 15.3 15.6 13.3 22.3 14.3 23.3 15.5

1999-0010.5 10.4 10.6 10.5 8.5 24.8 17.1 25.9 18.3

2000-017.8 7.4 7.4 7.0 5.1 23.7 15.6 24.3 16.3

2001-029.0 8.5 9.2 8.8 6.6 23.5 15.0 22.8 14.3

2002-037.8 7.6 8.0 7.8 6.2 26.3 18.0 25.2 16.7

2003-0412.2 12.3 12.2 12.2 10.5 29.8 21.8 27.6 19.4

2004-0513.4 12.9 13.4 12.9 11.1 31.7 23.7 32.1 24.2

2005-0614.1 13.9 14.0 13.8 12.1 34.2 26.4 35.5 27.8

2006-0715.1 15.2 15.2 15.2 13.5 35.7 28.1 36.9 29.4

2007-0814.3 14.0 14.6 14.3 12.7 37.7 30.1 39.1 31.7

2008-0914.2 14.2 14.2 14.2 12.6 - - - -


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Rate of NDS

0

5

10

15

20

25

30

35

1990

-91

1992

-93

1994

-95

1996

-97

1998

-99

2000

-01

2002

-03

2004

-05

2006

-07

Rate of NDS

Conclusion: -

From the above data of NDS we get the investment in the RS. In this data the year

1997-98 to 2003-04 the asset is fluctuating and after it is constantly increases from

2001-02 to 2008-09 up to 15.0 to 30.1.investment rate is grows so savings is also

increases in the best way. Sometimes net domestic savings is fluctuating way means it

is increase and decrease but after last years trends is constantly increase.


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6. Commercial paper

Year out standing

1992-93 577

1993-94 4560

1994-95 5552

1995-96 885

1996-97 682

1997-98 5613

1998-99 9028

1999-00 13871

2000-01 13488

2001-02 15857

2002-03 16600

2003-04 15479

2004-05 23305

2005-06 34592

2006-07 42670

2007-08 67626

2008-09 94367

2009-10 57051


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Conclusion: -

From the above data of NDS we get the investment in the RS. In this data the year

1992-93 to 2009-10 the asset is fluctuating and in the starting it was 577 and end with

57051. Commercial paper means any legally paper like bonds, government paper which

is important to share market and economy because it is affect on market conditions and

situations.


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Comparison of investment instruments in combined chart and its

analysis


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Suggestion:

One must change the investment pattern together with time. As time

changes, the composition of asset class in portfolio changes and so does the risk

appetite of people.

New generation prefers more risk and return then low risk and stable return.

Conclusion:

One can conclude that, over years there is a shift in the psychology of

investors. The asset class preference is ever changing. People are moving from less

risky to more risky asset classes. By comparing we concluded that, investors are think

deeply about market trends and economy and then they take decision about asset

classes and investment pattern. We can say that psychology is changing with pass the

time.


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3.9 Questionnaire & Survey

1) How the persons are making their investment portfolio?

NAME

NO OF

RES.

PERCENTAGE

Bank F.D. 18 36%

Stock Market 2 4%

Government Security 13 26%

Mutual Fund 1 2%

Post office 7 7%

PPF 5 10%

Others 4 8%

Investment avenues

36%

4%

26%

2%

14%

10%

8%Bank F.D.

Stock Market

Government

SecurityMutual Fund

Post office

PPF

Others


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Interpretation

From the above chart we can see that people are more believing in the

bank fixed deposit, and then they come to the Government security and then Post

office. Here as my research is on share market all persons are investing in stock market

more or less.

From the above chart we can easily say that investors are risk averse

they do not want to go for risky things. Here in the above chart in others I included the

Gold, Land and building etc. so people are also believe to invest in gold and others

assets.


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2) According to you investment of money in mutual funds only for the security

purpose.

opinion No. of resp percentage

YES 20 40%

NO 30 60%

ANALYSIS

40%

60%

YES

NO

Interpretation

Investors are believes that mutual fund is not useful only for security purpose

but also believe that security purpose and high return and better future in share market.

Investors are investing his money in the mutual fund for the getting better benefits and

also getting better return of his money. So 60% persons believe that his money not only

invest for security purpose.


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4) What do you feel about return?

NAME NO OF RES. PERCENTAGE

Extremely satisfied 4 8%

Highly satisfied 10 20%

Moderately satisfied 21 42%

Satisfied 12 24%

Not satisfied 3 6%

Investor Perception about return

8%

20%

42%

24%

6%

Extremely

satisfiedHighly satisfied

ModeratelysatisfiedSatisfied

Not satisfied


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Interpretation

From the above chart we can see that investor by investing in the in share

market they are moderately satisfied. Major portion is cover by the moderately satisfied

that is 42%. Next rank is of the satisfied that is 24%. 20% of the people are highly

satisfied by investing in the share market and 8% are extremely satisfied. There is also

a portion of not satisfied by the return getting from the marwadi shares financial limited.

As the general research we can say there is more or less return in the share

market because it is depend in the market condition and economy. So those major

portions of the investors are moderately satisfied by the return from the marwadi shares

and financial limited.


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5) Give your opinion about following factors affect on share market?

NAME OPINIO

N

PERCENTG

E

Economy 10 20%

Inflation 10 20%

Technical analysis 5 10%

All above 25 50%

OPINION

20%

20%

10%

50%

ECONOMY

INFLATION

TEC.ANAL.

ALL ABOVE

Interpretation

According to investors, there are some factor are most important to share

market. Economy fluctuation is affected on the share market and technical analysis is

also impact on the price of share and inflation is most important factor impact on the

share market. From the above chart we can see that these entire factors are best

affected on the share market.


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ANALYSIS

20%

20%

60%

M.F AS ADVA.

DIS. SHORTC.

RETURN

6) Why investor prefer to mutual fund for the purpose of investment as the best

option.

Name No. of resp percentage

Mutual fund combine advantage of

investment product

10 20%

Dispense shortcoming of other

option

10 20%

Return gets adjusted for market

movements

30 60%

Interpretation

Most of investors are interested in mutual fund because some investors

are accept that mutual fund is combine the advantages of different investment product

and some investor are believe that mutual fund is dispense shortcomings of other option

and 60% persons believe that mutual fund is prefer for better return for the adjustment

of market movements.


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7)According to you which way you are interested of share transaction?

SHARES TRANSACTION

40%

60%

DELIVERY

BASE

INTRADAY

BASE

Interpretation

Most of investors believe that share transaction is done on the base of

intraday. We can analyzed by above chart 60% investors are interested in intraday

bases. But some investors are interested in the delivery bases. 40% investors are

interested in delivery bases. Intraday bases is more preferable because investors are

want to daily transaction and delivery bases is related to long time transaction.

Name No. of resp percentageDelivery base 20 40%

Intraday base 30 60%


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8) Why some investors are not invested in the share market his money?

ANALYSIS OF INVESTORS VIEW

20%

50%

30%

HIGHER RISK

INSECURITY

LOW RETURN

Interpretation

Some investor believes that his money is not secure in the sharemarket. There are some reasons like these reasons are define by above chart and

analysis. 20% investors are believe that higher risk is one reasons for uninterested

in share market. 50% persons are believed that they are not interested in the share

market because of insecurity of money.

Name No. of resp percentageHigher risk 10 20%

Insecurity 25 50%

Low return 15 30%


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3.10 FINDINGS

After the survey the questionnaires have been carefully studied and the

responses process and analyze. During the survey after it the following observation

has been made.

I have observed that some investors are believed that his money secures in

the mutual fund and some investor believes that his money is secure in the

share market.

Most of investors are invest his money for the security purpose and they want

to get better return from share market and other types of assets.

I find that Marwadi shares and finance limited is to provide clients with timely,

focused, cost-effective consulting in order to achieve a clients strategic and

financial objectives.

Investors have strong faith in banks and in post office schemes and

government security.


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3.11 SUGGESTION

There are some suggestions is present by the analysis of above data and

observation.

I have presented some suggestion related to share market.

I want to suggest from my research, investors think about market trends and

economic situation after they decide investment pattern in different types of

assets.

I define that Marwadi shares and finance limited is one of best financial

commercial limited.

I suggest that investors must invest with Marwadi because of

1. Trust and reliability

2. Speed of execution

3. Research advice

4. Personalized service


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3.12 CONCLUSION

Each and every starting has and in the same way each and

every introduction has a conclusion. In this stage of conclusion. I once again rank in

gratitude on my part and thanks and express my gratitude.

This distinguishes the company from its larger competitors and

allows us to provide clients with timely, focused, cost-effective consulting in order to

achieve a clients strategic and financial objectives.

The Marwadi is a Gujarat based financial service group dealing

in equities/commodities broking and portfolio management service. In the last 15 years

Marwadi have grown into a network of more than 47 branches with 650+ committed

professional people. Marwadi shares and finance limited got the bright success and we

can also say that the future of this company will be very good and company also

becomes leaders of commercial market.

From the survey, I have conducted the analysis on the collected

data from that I have tried to give best conclusion of this research study.

Now this time Marwadi shares and finance limited has spread

very far in the broad area. Marwadi shares and finance limited is provided best services

for the customers or clients so that Marwadi share and finance limited try to more and

more increase the level of service in present market so that Marwadi share and finance

limited maintained better service and awareness about customer and investors.


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.


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QUESTIONNAIRE

SURVEY ON INVESTORS APPROACH TOWARDS RETURN OF

MARWDI SHARES AND FINANCE LIMITED

Name: ____________________________________________________

Address: __________________________________________________

__________________________________________________

Phone number: _____________________________________________

Education: ________________________________________________

Occupation: Corporate Employees ____________________

Business men___________________________

Age: _____________________________________________________

1. Are you investing?

Yes ___________No_____________


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2. If Yes, Where are you investing the money?

Bank Fixed deposit ______________

Stock Market ______________

Post Office ______________

Government Security _____________

Mutual Fund _____________

PPF _____________

Others Like Gold, Land and building _____________

3. According to you investment of money in mutual funds only for the security

purpose.

Yes ___________

No ____________

4. Approximately how much return the investors having from Marwadi shares are

getting?

4 to 6%____________ 6 to 8%________________

8 to 10%___________ More than 10%__________


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5. What do you feel about return?

Extremely Satisfied _____________

Highly Satisfied _____________

Moderately Satisfied _____________

Satisfied _____________

Not Satisfied ____________

6. Give your opinion about following factors affect on share market?

Economy __________ Inflation _____________

Technical analysis_______All above _____________

7. Why investor prefer to mutual fund for the purpose of investment as the best

option.

Mutual fund as combine advantage of investment product

_____________

Dispense shortcoming of other option

_____________

Mutual fund as gets adjusted for market movements

____________


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8. According to you which way you are interested of share transaction?

Delivery base _____________

Intraday base _____________

9. Why some investors are not invested in the share market his money?

Higher risk _____________

Insecurity _____________

Low Return _____________

Suggestions from your side

__________________________________________________________________

__________________________________________________________________

FM - Marvadi

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