A BRIEF STUDY ON AWARENESS OF

INVESTOR TOWARDS EQUITY MARKET

SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMNETS OF THE POST GRADUATE DIPLOMA IN
MANAEMENT CHANDRAGUPT INSTITUTE OF
MANAGEMENT PATNA

BY
[ABHISHEK RAJ]
[02/07/2019]

CHANDRAGUPT INSTITUTE OF MANAGEMENT PATNA

 SYNOPSIS

The Equity market has very low penetration level in India. Even after 70 years of independence

and growth in the education sector, the penetration of the Equity market in India is around 2.5

percent. Currently, India is on 7th position in share market by market capitalization in the world

(with $2.08 trillion by Dec 2018) and the US dominating in Equity market with the market

capitalization with $ 27 trillion. Many experts have the assumption that the penetration of the

Equity market will reach around 10 percent of the total population of India.

This report intends to show that the perception of investor towards the Equity market.

Objective

 To understand the perception of investors (present and potential) towards Equity market

 To appraise the obstacles in investments in Equity market from investors’ perspective

For effective completion of the report I have collected primary data, surveyed, personal

interviewed and through observation during and after the internship period I have completed

this report. I have also used secondary data from various sources on the internet. This report

shows that very few percent of people are willing to take the risk to invest in the Equity

market just because of the risk of return on their investment.

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 DECLARATION
I hereby declare that the Summer Internship Project entitled “(A brief study of investor

perception towards Equity market)” submitted to Chandragupt Institute of Management

Patna in partial fulfilment of the requirements for the award of Post Graduate Diploma in

Management is my original work and has been prepared by me under the general supervision of

my Industry Mentor (Mr. Brajesh Kumar) and Faculty Supervisor (Prof. Santosh Kumar). I have

not submitted the work earlier, either to any other Institute or University for the award of any

diploma, degree or certificate. I have followed the CIMP guidelines to prepare the report. I have

also given due credit to the sources of data, theoretical analysis, text and other materials by citing

them in the text of the report and producing the details in the reference section.

Place:

Date: ...../....../……… Abhishek Raj

110003

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 CERTIFICATE BY FACULTY GUIDE

This is to certify that the work incorporated in this Summer Internship Project entitled “A brief

study of investor perception towards Equity market,” by Mr. Abhishek Raj bearing Roll no

110003, comprises the results of his/her independent and original investigations carried out

under my supervision and guidance in partial fulfillment of the requirements for the award of

Post Graduate Diploma in Management. To the best of my knowledge, the work has not been

submitted earlier, either to any other Institute or University for the award of any diploma, degree

or certificate.

Place:

Date: ...../....../……….. Prof. Santosh Kumar

3
 CERTIFICATE BY INDUSTRY MENTOR

This is to certify that Mr. Abhishek Raj bearing Roll no 110003 a student of Chandragupt

Institute of Management Patna, has successfully completed Summer Internship

Project entitled “A brief study on perception of investor towards Equity market” under my

supervision and guidance in partial fulfillment of the requirements for the award of Post

Graduate Diploma in Management for a period from 1 st April 2019 to 1st June 2019. The

work has not been submitted to any other institution or University for the award of any

degree/diploma or certificate to the best of my knowledge.

Place:

Date: ...../....../……… Mr. Brajesh Kumar

Cluster head, KSBL Muzaffarpur

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 ACKNOWLEDGEMENT

I am thankful to my mentor, faculty members of CIMP and the management of KARVY STOCK
BROKING Ltd., for providing me the opportunity to do my 2 months internship project training
in their organization.

I am very thankful to Mr. Ritesh Raj (DGM- Area manager) for granting me to start my training
at Muzaffarpur branch.

I am very thankful to each & every member of KARVY under whose guidance and direction, I
was able organized my training. Their constant review and excellent suggestions throughout the
project are highly commendable.

I am thankful to Mr. Brajesh Kumar (my industry mentor) who guided me throughout my
internship period.

ABHISHEK RAJ
PGDM2018_20
CIMP, Patna

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 Table of Content

Synopsis …………………………………………………………………………….1
Research Methodology
1. Title…………………………………………………………………………
2. Definition of population……………………………………………………
3. Sample size……………………………………………………………....…
4. Primary data………………………………………………………………..s
Analysis of the report………………………………………….
Findings
Suggestions
Conclusion
Limitations

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LIST OF ABBREVIATION AND SYMBOL

1. KSBL………..KARVY Stock Broking lmt.

2. BSE…………..Bombay Stock Exchange

3. NSE………......National Stock Exchange

4. PAN…………...Permanent Account Number

5. IPO…………….Initial Pubic Offering

6. CDSL…………Central Depository Service Limited

7. NSDL…………National Securities and Depository Limited

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 INTRODUCTION

An equity market is a market where shares are sold and purchased. Equity market is also known

as Share market and it is very helpful to company to raise the funds, it is the last for the

companies to raise funds and the project which are highly costly in that case companies come

with IPO.

In India the share market is being controlled and the trade happens by NSE and BSE.

The customer awareness about financial tools like shares/debentures are very less and the market

penetration is also very less and there is huge potential in Indian market and a lot of growth

opportunity.

NSE was established in India in 1992 as first electronic automated screen based system and

currently NSE is 12th largest stock exchange in the world with a volume of $1.41 trillion.

BSE was the first stock exchange established in year 1875 and it is considered as world’s fastest

stock exchange and it is operating as 11th largest stock exchange.

 Demat account is the locker of trading.

 Demat account is a type of account which allow the user to trade electronically and keep

their shares in electronic form.

For trading in share market, we first need to have a Demat account. Like saving account is

compulsory to deposit your money in the bank, you must have a Demat account in any company

to invest money in share market.

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About the company

KARVY Stock Broking Limited was established in year 1983 and it’s headquarter was

established in Hyderabad and currently it is among the top 5 companies which are dealing in

Equity market. The companies is having more than 30k employees and having more than 900

offices across India. KSBL also deals in foreign exchange market

Evolution of KARVY

 1979-1980: KARVY and company

 1981-1982: KARVY consultant ltd

 1985-1986: Forayinto the capital market as registrars and transfer agent

 1987-1988: first branch in Mumbai

 1990: entryinto retail broking

 1994: entryinto mutual fund services.

 1995: corporate finance and investment banking.

 1996: Jardine fleming invests in groupcompanies.

 1997:thefirst registrar in the country to be awarded ISO 9002.

 2002: launch of a private client group (PCG ) desk.

 2004: Jv with computer share limited, Australia

 2004: the mergerof KARVY securities ltd with KARVY stock broking ltd.

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 2005: KARVY insurance broking private ltd.

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Products & Services by KARVY

1. Stock broking:

KARVY offer online trading of stock/shares of any listed company on NSE/BSE.

Invsetors can buy or sell their stocks/shares on online platform through app provided by

KARVY (karvyonline), through app they can also manage their funds according to their

uses as per required.

2. Depository Participants:

KARVY is also providing Demat facility, which is member of CSDL and NSDL.

KARVY get membership from CDSL and NSDL in 1998 and developed as one the top

depository participants in India.

3. Mutual fund advisory:

KARVY is providing mutual funds services for their customer. In which they suggest

customer to invest their money according to their use and their measuring different

parameters like their age, risk taking ability and others thing. KARVY provides mutual

funds of many companies (like HDFC, SBI, Sundaram etc.) and they get some margin

from customers.

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 RESEARCH METHODOLOGY

Title: A brief study on the perception of investors towards the Equity market.

The title is self-explaining that what is thinking of investor (present and potential both) about the

Equity market. That means are they willing to invest in the Equity market or not and if not then

why, what are the reasons that let them stop to invest in the Equity market. They survey has been

done in the market of Muzaffarpur that means the basically the report has prepared for

Muzaffarpur market only.

Definition of the population

Since the study is mainly related to know the perception of investor (present and potential both)

towards Equity market in Muzaffarpur. Muzaffarpur is basically comes under tier 3 cities which

have very low level of globalization and the people of this city are not very much aware about

the financial and other aspect of globalization. In Muzaffarpur the main earning sources is from

business from unorganized sector that means like other cities (tier 1 & 2) most of the people

work in organization which have generally headquarters at any part of the globe whereas in this

town most of the people work in small shops or have their own shops. So they are not very much

aware about the companies listing in Equity market. So I have surveyed both part of the

population that means those who are working in any organization sector and people who are

working in or have their own shops.

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Sample Size:

The sample size was 72, which consist above mentioned investors of Muzaffarpur.

Primary Data:

Information is collected by conducting a survey by distributing a questionnaire to 72 respondents

in Muzaffarpur. These investors are of different age group, different, income level, different

occupation, and different qualification.

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 ANALYSIS OF THE REPORT

The objective of this report is to know about the perception of investors towards the Equity

market and an analysis is made on the responses received from 72 sample investors. So the

questionnaire was prepared in that form so that we can find out the main thinking of people in

the Muzaffarpur about the Equity market. Questionnaire contains the different aspect that can be

related with their perception like linkage of awareness about financial products and qualification

of the person.

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 FINDINGS, CONCLUSION AND SUGGESTIONS

FINDINGS:

These are the findings of the data collected by questionnaire

 There is lack of knowledge about the Equity market in Muzaffarpur.

 People are afraid in investment in equity market mostly due to risk factor.

 Majority of the respondents are fall in age group of 18-25(48.6%).

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 Majority of the respondents are undergraduate (43.1%) and 34.7% are post graduate.

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 Majority of the respondents are student (40.3%).

 Majority of the respondents have family income below 2.5 lakh and only 8.3%

respondents have family income higher than 10 lakh.

 Majority of the respondents are not satisfied with their family income (38%), and 35%

respondents were able to stat that they are satisfied with their income or not and only

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 27% respondents are satisfied with their family income.

 Majority of the respondents were aware about Mutual Funds (66.7%), whereas 50% of

the respondents were aware about Equity market and 15% of the respondents were

unaware about of any of the financial products.

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 Majority of respondents have not ever invested in any kind of financial products (69.4%)

the penetration level of financial products is very low in the Muzaffarpur market.

Whereas only 18% respondents had invested in the Equity market.

 When it comes to interest in investment in any financial products the even in that case

one third of the respondents was not interested in investment in any kind of financial

products. Whereas one third of the respondents were interested in investment in the

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 Equity market and mostly (45%) were interested in investment in Mutual Funds.

 When it comes to awareness about any Stock broking company then one fourth (25%) of

the respondents were not heard or unaware about any kind of Stock broking company.

Whereas among the popular Stock Broking company KARVY and Sharekhan are most

popular in the Muzaffarpur market.

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 Majority of the respondents (70.8%) were only not invested or not want to invest in Stock

Market just because there is risk on return. That show the population are not risk taking

when it comes to their money. They simply get normal interest on saving account or on

Fixed Deposit.

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 CONCLUSION:

The study of the perception of investors in Muzaffarpur towards Equity market concludes

that most of the people in Muzaffarpur are not willing to take risk in monetary terms. Very

low percent of people have invested in Equity market.

When we try study of different segment that means people who runs business have very low

interest towards Equity market not because of Risk on Return because they can utilize their

money in their business or they need working capital in their business. Even big profitable

businessman are need working capital for their day to day business.

When it comes to private sector peoples many of the employee had invested in Mutual Funds

and in Equity market. Whereas most of were interested in investment in MF or/and Equity

market. I also observed that the person who have invested in MF are also interested in

investment in Equity market.

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23
 SUGGESTION:

During the period of 2 months internship in KARVY Stock Broking limited and surveyed in the

market of different groups I realized some issues and I want to give some suggestion to the

company for betterment.

1. The financial institutes must advertise more in market on hordings so that at least some

people will aware about it. This is because after seeing hording boards in the market they

will at least search about it or maybe if anyone tell about this company or about these

things then they should at least aware about it.

2. There should also be advertise on national channels which have high TRP so that most of

the people will aware about it and then at least they will show interest towards this

market. Now very few companies advertise of this segment in TV even on business

channels (that telecast about the Equity market).

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 Questionnaire

Name: ………………………………………………………………….. Mobile No: ……………………………………………..

Address: …………………………………………………………………………………………………..................................
E-mail: ………………………………………………………………………………………………………………………………………
1. AGE
A. 18-25
B. 26-40
C. 41-60
D. Above 60

2. QUALIFICATION
A. P.G
B. U.G
C. Higher secondary level
D. Matriculation
E. No formal education

3. OCCUPATION
A. Self-employed
B. Government job
C. Private job
D. Retired
E. Student

4. INCOME
A. Below 2.5 lakh
B. 2.5 to 5 lakh
C. 5 to 10 lakh
D. 10 to 20 lakh
E. Above 20 lakh

5. Do you satisfy with your income

A. Yes
B. No
C. Can’t say

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6. Have you heard about any of these financial products?
A. Stock market/ Share market
B. Mutual funds
C. Bonds
D. None of these

7. Have you ever invested in these kinds of financial products?

A. Stock market
B. Mutual funds
C. Bonds
D. None of these

8. Are you interested in any of these financial products?

A. Stock market
B. Mutual funds
C. Bonds
D. None of these

9. Have you heard any Stock broking companies?

A. KARVY Stock broking limited
B. Motilal Oswal
C. Sherkhan
D. Angel brocking
E. None of these

10. What stops you to invest into Stock market?

A. Risk on return
B. Hesitate to give your money in someone others hand
C. You can utilize your money at another place
Please mention……………………………………………………………………………………………………….

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