FM - Marvadi

MARWADI SHARES AND FINANCE LIMITED
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
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 OF INVESTMENT PATTERN IN DIFFERENT ASSETS CLASSES prepared by KALSARIYA NILESH KANTIBHAI at MARWADI SHARES AND FINANCE LIMITED, BHAVNAGAR as the partial fulfillment of the University requirement for the award of MBA degree of Gujarat Technology University Ahmedabad.
Date: Place: - Amreli
Thanking You, Yours Truly
Director
K.
K.
P. I. AMRELI
M.
S.
STUDENT DECLARATION
I the undersigned student KALSARIYA NILESH KANTIBHAI of K. 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 CLASSES is 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: Place: - Amreli
Signature
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.
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.
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.
INDEX
Ch. No Particular Page No. 1 1.1 1.2 1.3 1.4 1.5 2 2.1 2.2 2.3 2.4 2.5 3 3.1 3.2 3.2 3.3 3.4 3.5 3.6 3.7 Company overview History of Marwadi shares and finance limited Different services of Marwadi Mission and vision Milestones Company profile Investment and risk What is investment? Investment in terms of finance Types of investment option Risk class definition Description of general risk Research methodology Introduction Literature Reviews & Articles Define the problem Objective of the study Limitation of the study Nature of study Data collection Sampling plan 1 2 3 5 6 7 8 9 11 12 19 20 24 25 27 31 32 33 34 35 38
MARWADI SHARES AND FINANCE LIMITED 3.8 3.9 3.10 3.11 3.12 3.13 Data analysis and Interpretation Questionnaire & survey Findings Suggestions Conclusion Bibliography Appendix 40 55 65 66 67 68 69
10
11
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.
12
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 IPO Every 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
13
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
14
1.3 Mission & Vision
"To be a world-class financial services provider by arranging all conceivable financial services under one-roof at affordable costs through cost effective delivery systems, and achieve organic growth in business by adding newer lines of business.
15
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 Investments plc.
1.5 Company profile
16
NAME NAME OF EXCHANGE DIVISION FORMS OF ORGANISATION ESTABLISHING YEAR TYPES OF DEALING Main dealing
MARWADI SHARES AND FINACE LIMITED National commodity and derivatives exchange ltd Multi commodity exchange of India ltd Jamnagar, Bhavnagar, Rajkot, Ahmadabad PRIVATE LIMITED 1992 Shares, Commodity, Depository DEMAT ACCOUNT
Mr. Ketan NAME OF DIRECTORS Mr. Deven
Marwadi Marwadi
Mr. SandeepMarwadi Mrs. Meera Marwadi
BRANCE MANAGER
MR KAMLESH MARWADI MARWADI FINANCE CENTER, NR.KATHIYAWAD GYMKHANA, RAJKOT-360 001. GUJRAT (INDIA) +91-281-2481313/2468131 ICICI,DENABANK,BANK OF INDIA , BANK OF BARODA MORE THAN 300
REGISTERED OFFICE
PHONE NO BANKERS NO OF EMPLOYEES
17
2.1 What is an investment?
18
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 for economic purpose or not.
19
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 or patents and goodwill. The decision for investment is also known as capital budgeting decision, which is regarded as one of the key decision.
20
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.
21
In finance, the purchase of a financial product or other item of value 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 or inventory, 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 suitable investment.
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.
22
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.
23
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.
PUBLIC 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.
24
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 not earning. 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.
25
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 in the 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.
26
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 the unit 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.
27
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 as Discount) 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. 28
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.
29
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 an unfavorable 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.
30
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.
31
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.
32
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.
33
34
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
35
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 be obtained by proving existing theories or systems, and by trying to better explain observations.
36
3.2 What is literature 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 International stock market efficiency and integration: a study of eighteen nations
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 Accounting Subject: Business ISSN: 0306-686X Year: 1997
37
MARWADI SHARES AND FINANCE LIMITED Read more: http://www.faqs.org/abstracts/Business/International-stock-marketefficiency-and-integration-a-study-of-eighteen-nations.html#ixzz0uIIuOtPs
Portfolio inefficiency and the cross-section of 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 index portfolio'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 Publisher: Blackwell Publishers Ltd. 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-crosssection-of-expected-returns.html#ixzz0uIK9xrC2
38
On the predictability of stock returns: an asset-allocation perspective

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 against predictability. (Reprinted by permission of the publisher.) Author: Stambaugh, Robert F., Kandel, Shmuel Publisher: Blackwell Publishers Ltd. 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-crosssection-of-expected-returns.html#ixzz0uIKS5bak
An analysis of decision under risk

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
39
MARWADI SHARES AND FINANCE LIMITED expected utility theory. Develop an alternative theory of individual decision making under risk called prospective theory.
Source: Daniel Kahneman and Amos Tversky, Prospect Theory: An Analysis of Decision Making Under Risk, Econometrica, 1979.
Investor Psychology and Market Inefficiencies
Article Abstract People trade for both cognitive and emotional reasons. They trade because they think they have information when they have nothing but noise and they trade because trading can bring the joy of trade. Investors try to avoid the pain of regret by avoiding the realization of losses and avoiding stocks of companies with low reputations. Yale professors Roberts Shellers human behaviors and efficiency of finance system.
Meir Statman ("Investor Psychology and Market Inefficiencies," Equity Markets and Valuation Methods, the Institute of Chartered Financial Analysts, 1988)
Using Behavioral Finance to Better Understand the Psychology of Investors from II (May 2010) Conversations with History: Daniel Kahneman (5/16/2008) and Reflection on a Crisis - video (1/27/2009) with Daniel Kahneman and Nassim Taleb (author of The Black Swan) Aspects of Investor Psychology by Daniel Kahneman and Mark Riepe (Summer 1998 Journal of Portfolio Management)
40
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 to obtain 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 different assets classes in whole market.
41
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 and social role. 5. To compare the trends of present investors to old investor with earlier trends.
42
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.
43
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.
44
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.
45
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 personal interview of interview method.
For collecting primary data and secondary data both are main two important methods: OBSERVATION METHOD INTERVIEW
46
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.
47
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. SAMPLING METHOD: The sample has been simple randomly sampling in order to facilitate unbiased representation.
48
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
49
50
3.8 Data analysis and interpretation 1. Net domestic saving

Household Sector Year Financial Savings Physical Savings Total Private Corporate Sector 11845 15164 20304 19968 29866 35260 59153 62209 65769 68856 87234 81062 76906 99217 127100 212048 276550 342284 416936 Public Sector Gross Domestic Savings 106092 130010 141089 159682 189933 247462 291002 313068 363506 389747 484256 499033 534885 646521 820685 997873 1228026 1475108 1779614 Net Domestic Savings 60525 78932 79118 87553 109050 153640 179876 184677 219757 227545 302835 297215 306588 396014 540637 668832 847714 1038071 1270165
1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
37998 49640 62101 65367 94738 120733 105719 141661 146777 180346 206602 215219 247476 253255 313260 317546 420974 482822 553289
44767 55149 41394 57948 54796 68057 95296 79312 123531 149414 205914 239634 256689 309985 350804 399328 443679 512076 596846
82765 104789 103495 123315 149534 188790 201015 220973 270308 329760 412516 454853 504165 563240 664064 716874 864653 994898 1150135
11482 10057 17290 16399 10533 23412 30834 29886 27429 -8869 -15494 -36882 -46186 -15936 29521 68951 86823 137926 212543
51
Net Domestic Savings 1400000 1200000 1000000 800000 600000 400000 200000 0 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.
19 89 -9 0 19 91 -9 2 19 93 -9 4 19 95 -9 6 19 97 -9 8 19 99 -0 0 20 01 -0 2 20 03 -0 4 20 05 -0 6 20 07 -0 8
52
2. Asset under management of mutual fund

TABLE 86 : ASSETS UNDER MANAGEMENT OF MUTUAL FUNDS
(Rupees crore)
Year (End-March) 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Amount
85822 97228 68193 107946 90587 100594 109299 139615 149600 231862 326292 505152 417300
53
Amount 600000 500000 400000 300000 200000 100000 0

19 96 19 -9 7 97 19 -9 8 98 19 -9 9 99 20 -0 0 00 20 -0 1 01 20 -0 2 02 20 -0 3 03 20 -0 4 04 20 -0 5 05 20 -0 6 06 20 -0 7 07 20 -0 8 08 -0 9
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.
54
3. Small saving
TABLE 127 : SMALL SAVINGS
(Rupeescrore)
Total Deposits Year 199091 199192 199293 199394 199495 199596 199697 199798 199899 199900 200001 200102 200203 200304 200405 200506 200607 200708 200809 Receipts 9455 10551 10151 12229 15791 15920 16428 22622 27621 37053 44869 51746 70214 94272 122616 130447 116303 104250 118785 Outstanding 17022 20255 21694 23653 28066 30248 31800 38274 47124 60639 80654 105078 140216 188907 251665 306986 332130 324077 317518
Total Certificates Receipts 8214 6687 7414 11642 18526 16828 16680 23668 27182 31237 33044 28078 33051 39170 33369 39812 34532 21364 21954 Outstanding 33257 35744 38788 43383 54244 62452 72839 86065 104833 122247 138041 149667 163421 174563 191794 203771 212785 208976 204064
Public Provident Fund Receipts 0 0 170 206 350 0 504 645 1017 1405 1398 1929 2337 2528 2534 3024 4065 3347 2940 Outstanding 0 2596 466 660 1027 1028 1472 2416 3339 4624 6392 8111 10156 12267 14273 16872 19457 21358 22758 Receipts 17669 17238 17735 24077 34667 32748 33612 46935 55820 69695 79311 81753 105602 135970 158519 173283 154836 123652 143668
Total Outstanding 50279 58595 60948 67696 83337 93728 106111 126755 155296 187510 225087 262856 313793 375737 457732 527629 564372 509411 544340
55
Outstandings 600000 500000 400000 300000 200000 100000 0

19 90 -9 1 19 92 -9 3 19 94 -9 5 19 96 -9 7 19 98 -9 9 20 00 -0 1 20 02 -0 3 20 04 -0 5 20 06 -0 7 20 08 -0 9
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.
56
4. Commercial Banks
TABLE 50 : SAVINGS DEPOSITS WITH COMMERCIAL BANKS
(Rupees crore)
Year (As on last reporting Friday)

1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 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
Scheduled Commercial Banks
Non-Scheduled Commercial Banks
Indian Banks
49542 55554 57256 69434 89019 99347 112570 136770 160889 187173 217452 272119 302816 373137 443573 556303 649586 747189 874046
Foreign Banks
959 1348 1317 1718 2305 2514 2875 3194 3836 4727 5530 6988 8748 12232 15045 18827 21839 25093 26921
Total Banks
50501 56902 58573 71151 91324 101861 115445 139964 164725 191900 222982 279107 311565 385369 458618 575130 671425 772282 900967 31 31 30 19 20 -
57
Total Banks 1000000 900000 800000 700000 600000 500000 400000 300000 200000 100000 0
19 91 -9 2 19 93 -9 4 19 95 -9 6 19 97 -9 8 19 99 -0 0 20 01 -0 2 20 03 -0 4 20 05 -0 6 20 07 -0 8
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.
58
5. Growth saving and investment rate

Annual Growth Rate . GDP at Factor Cost NDP at Factor Cost GNP at Factor Cost NNP at Factor Cost Per Capita NNP Rate of GDS Rate of NDS Rate of GDCF Rate of NDCF
New Series (Base : 1999-2000) 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 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
16.5 15.4 14.7 16.2 16.8 17.1 16.4 11.2 15.3 10.5 7.8 9.0 7.8 12.2 13.4 14.1 15.1 14.3 14.2 17.0 14.7 14.5 16.7 16.9 16.9 16.5 11.1 15.6 10.4 7.4 8.5 7.6 12.3 12.9 13.9 15.2 14.0 14.2 16.3 15.1 14.7 16.5 16.9 17.3 16.6 11.3 15.3 10.6 7.4 9.2 8.0 12.2 13.4 14.0 15.2 14.6 14.2 16.8 14.4 14.5 17.0 17.0 17.2 16.7 11.2 15.6 10.5 7.0 8.8 7.8 12.2 12.9 13.8 15.2 14.3 14.2 14.4 12.1 12.4 14.3 14.7 14.9 14.5 9.2 13.3 8.5 5.1 6.6 6.2 10.5 11.1 12.1 13.5 12.7 12.6 22.8 21.5 21.2 21.9 24.4 24.4 22.7 23.8 22.3 24.8 23.7 23.5 26.3 29.8 31.7 34.2 35.7 37.7 15.2 13.3 12.9 13.9 16.7 16.6 14.8 15.9 14.3 17.1 15.6 15.0 18.0 21.8 23.7 26.4 28.1 30.1 26.0 22.1 23.1 22.5 25.5 26.2 24.0 25.3 23.3 25.9 24.3 22.8 25.2 27.6 32.1 35.5 36.9 39.1 18.7 13.9 14.9 14.5 18.0 18.6 16.2 17.5 15.5 18.3 16.3 14.3 16.7 19.4 24.2 27.8 29.4 31.7 -
59
Rate of NDS 35 30 25 20 15 10 5 0
19 90 -9 1 19 92 -9 3 19 94 -9 5 19 96 -9 7 19 98 -9 9 20 00 -0 1 20 02 -0 3 20 04 -0 5 20 06 -0 7
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.
60
6. Commercial paper
Year 1992-93 1993-94 1994-95 1995-96 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 2009-10
out standing 577 4560 5552 885 682 5613 9028 13871 13488 15857 16600 15479 23305 34592 42670 67626 94367 57051 61
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.
62
Comparison of investment instruments in combined chart and its analysis
63
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.
64
3.9 Questionnaire & Survey

1) How the persons are making their investment portfolio? NO OF NAME Bank F.D. Stock Market Government Security Mutual Fund Post office PPF Others RES. 18 2 13 1 7 5 4 36% 4% 26% 2% 7% 10% 8% PERCENTAGE
Investment avenues
8% 10% 36% 14% 2% 4% 26%
Bank F.D. Stock Market Government Security Mutual Fund Post office PPF Others
65
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.
66
2) According to you investment of money in mutual funds only for the security purpose. opinion YES NO No. of resp 20 30 percentage 40% 60%
ANALYSIS
60% YES NO
40%
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.
67
3) Approximately how much return the investors having from Marwadi shares are getting?
APPROXIMATELY 4 to 6 6 to 8 8 to 10 More than 10
NO OF RES. 1 19 23 7
PERCENTAGE 2% 38% 46% 14%
Percentage of return from marwadi Shares and finance

14% 2% 38%
4 to 6 6 to 8 8 to 10
46%
More than 10
Interpretation
According to above chart we can see that there are the average returns getting by the investors from the Marwadi shares and financial is between 6 to 8 percentages. Return is based base on the market condition and situation. In inflation time investors are getting best return from stock market.
68
4) What do you feel about return?
NAME Extremely satisfied Highly satisfied Moderately satisfied Satisfied Not satisfied
NO OF RES. PERCENTAGE 4 10 21 12 3 8% 20% 42% 24% 6%
Investor Perception about return

Extremely satisfied Highly satisfied
20%
6% 24%
8%
Moderately satisfied Satisfied Not satisfied
42%
69
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.
70
5) Give your opinion about following factors affect on share market?
NAME
OPINIO N
PERCENTG E 20% 20% 10% 50%
Economy Inflation Technical analysis All above
10 10 5 25
OPINION
20%
ECONOMY INFLATION
50% 20%
TEC.ANAL. ALL ABOVE
10%
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.
71
6) Why investor prefer to mutual fund for the purpose of investment as the best option. Name Mutual fund combine advantage of investment product Dispense shortcoming of other option Return gets adjusted for market movements 30 60% 10 20% No. of resp 10 percentage 20%
ANALYSIS
60%
M.F AS ADVA. DIS. SHORTC. RETURN
20% 20%
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. 72
7) According to you which way you are interested of share transaction? Name Delivery base Intraday base No. of resp 20 30 percentage 40% 60%
SHARES TRANSACTION
DELIVERY BASE
60%
INTRADAY BASE
40%
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.
73
8) Why some investors are not invested in the share market his money? Name Higher risk Insecurity Low return No. of resp 10 25 15 percentage 20% 50% 30%
ANALYSIS OF INVESTORS VIEW
20% 50%
HIGHER RISK INSECURITY LOW RETURN
30%
Interpretation
Some investor believes that his money is not secure in the share market. 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.
74
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.
75
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
76
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.
77
3.13 BIBLIOGRAPHY
BOOKS
MARKETING RESEARCH METHODOLOGY Second edition Author - C.R.KOTHARI
Research methodology (methods & techniques), Second edition Publisher New age international publishers Author C.R.KOTHARI
Pathak Bharati V., Indian Financial Systema, Published by Pearson Education (Singapore) Pte. Ltd., Indian Branch, 482 F.I.E. Patparganj, Delhi
Research methods, Trochin Williom M.K. (2nd Edition), Author- Biztantra.
NET SEARCHING
THROUGH INTERNET WWW.MARWADIONLINE.COM AT [email protected] WWW.MONEYCONTROL.COM WWW.VALUERESEARCH.COM WWW.INDIATIMES.COM
78
MARWADI SHARES AND FINANCE LIMITED .
79
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_____________
80
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%____________ 8 to 10%___________
6 to 8%________________ More than 10%__________
81
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 ____________
82
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 __________________________________________________________________ __________________________________________________________________
83

FM - Marvadi

Uploaded by

Copyright:

Available Formats

FM - Marvadi

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

FM - Marvadi

Uploaded by

Copyright:

Available Formats

MARWADI SHARES AND FINANCE LIMITED

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

Submitted to Gujarat Technological University - Ahmedabad

Prepared By: KALSARIYA NILESH KANTIBHAI

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

MARWADI SHARES AND FINANCE LIMITED

MARWADI SHARES AND FINANCE LIMITED

K. K. Parekh Institute of Management Student Amreli

Subject: MBA Summer Training Project Report

Date: Place: - Amreli

Thanking You, Yours Truly

MARWADI SHARES AND FINANCE LIMITED

MARWADI SHARES AND FINANCE LIMITED

Date: Place: - Amreli

MARWADI SHARES AND FINANCE LIMITED

MARWADI SHARES AND FINANCE LIMITED

MARWADI SHARES AND FINANCE LIMITED

MARWADI SHARES AND FINANCE LIMITED

MARWADI SHARES AND FINANCE LIMITED

MARWADI SHARES AND FINANCE LIMITED

1.1 Introduction of the company

MARWADI SHARES AND FINANCE LIMITED

1.2 Introduction Demat Service

MAKE US CUSTODIANS OF YOUR WEALTH AND ENJOY IT GROW

MARWADI SHARES AND FINANCE LIMITED

COME AND DISCOVER THE WORLD OF COMMODITIES THROUGH MARWADIS

MARWADI SHARES AND FINANCE LIMITED

1.3 Mission & Vision

MARWADI SHARES AND FINANCE LIMITED

1.5 Company profile

MARWADI SHARES AND FINANCE LIMITED

Mr. Ketan NAME OF DIRECTORS Mr. Deven

Mr. SandeepMarwadi Mrs. Meera Marwadi

PHONE NO BANKERS NO OF EMPLOYEES

MARWADI SHARES AND FINANCE LIMITED

2.1 What is an investment?

MARWADI SHARES AND FINANCE LIMITED

MARWADI SHARES AND FINANCE LIMITED

Investment in terms of Business Management

MARWADI SHARES AND FINANCE LIMITED

2.2 Investment in terms of finance

MARWADI SHARES AND FINANCE LIMITED

2.3 Investment options

MARWADI SHARES AND FINANCE LIMITED

TYPES OF INVESTMENT OPTIONS

CASH AND FIXED INTEREST

MARWADI SHARES AND FINANCE LIMITED

NATIONAL SAVING CERTIFICATE

PUBLIC PROVIDENT FUND (PPF)

MARWADI SHARES AND FINANCE LIMITED

POST OFFICE SCHEMES

MARWADI SHARES AND FINANCE LIMITED

COMPANY FIXED DEPOSITS

MARWADI SHARES AND FINANCE LIMITED

MARWADI SHARES AND FINANCE LIMITED

REAL ESTATE INVESTMENT