INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH

SHAREKHAN LIMITED

CHAPTER-1

INTRODUCTION

1|Page S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

1.1 INTRODUCTION

Venture alludes to the work of assets with a destinations of acquiring a best profit for it
speculation is the associated of cash that have been spared by not the equivalent has each
other utilization and purchasing a benefits, regardless of whether real or money related with a
yield any potential positive returns an individual speculator is relied upon to meet the
financial specialists goals.

A sensible financial specialists targets accomplishing greatest come back with least hazard
The venture incorporates the conventional methodology the financial specialists needs and
needs in states of pay and capital increment in estimation of the protections are picked to
meet the needs of the speculator in the advanced methodology in the choice of protections
dependent on hazard and bring investigation back. The BSE was begun in is the asia's first
stock trade in quite a while and it incorporate the in excess of 5000 organizations and national
stock exchange was 1600 organizations on the planet.

A hazard profile is an assessment of people compliances and capacity to face challenge ,it is
alludes to the dangers to which an association is settled a hazard profile is a significant
deciding a splendidly speculation resources designation for a venture . By and large words
venture is a hazard rise the financial specialists investigate better yield to speculators
themselves for facing such challenges a venture profile alludes to the made up of the key
information taking to speculations or monetary resources.

Hazard is a worry as for your venture that has the conceivable to adversely impact your
money related bit of leeway your speculation esteem is low or high or fall since its relies on
showcase circumstance. The speculation configuration dependent on hazard profile of
financial specialists in share khan restricted and what are the hazard factors that sway the sort
of new endeavors made by individuals .The venture configuration composed in respect of
there chance bearing breaking point and this assessment urges organizations to concentrate on
the examiner as led by their hazard taking limit ,the individual meets to get the better returns
in future. they would be how to put their money in trade in security or anywhere else there
is a solid relationship in interest in depends on hazard and return chance bearing constraint of
venture while doing new pursuit they are putting of cash in speculator dependent on
economic situation.

2|Page S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

1.2 INDUSTRY PROFILE

This is a monetary administrations industry it is all so know as a financial administrations , it
is an immaterial in nature and it is give by the securities exchange. budgetary administrations
industry offers the types of assistance on the trading of cash or for estimation of cash. These
are the productive administrations give by the money business which incorporates the wide
scope of business that control cash it incorporates credit associations, banks visa
organizations, bookkeeping organizations, stock financier, speculation subsidize and so forth
and it is comprises of bank cards both credit and charge card, consultative administrations,
private value store and funding.

The budgetary part comprise of protection shared assets, annuity reserves non banking
monetary organizations , cooperatives , business banks those are not just defensive credit
taking . credit and stock administrations yet in addition money related items , conviction and
bolster administrations and protections client prerequisites and expectation are rising ordinary
, this assists with expanding the individual riches a .created populace and goal of individuals
that can received by money related items and administrations. Indian offers are having some
fabulous karma and that is bringing of the country's stock exchanges is the overall stage on
Friday and the market capitalization, or full scale estimation the recorded associations, on
Mumbai's national stock exchange exchange showed up at another record of trillion rupees
($1.6 trillion.) .The market estimation of associations recorded on Indian stock exchanges has
rose by over the earlier year, as money related experts are betting that Indian associations
will benefit by a turn in the local economy and systems foreseen from the new government
that came to control in May. The bombay stock exchange assessed by advertise a motivator
toward the piece of the plan, to data from the world federation of exchanges protections trade
looks like an ocean, people take after a fishes in the ocean, and the money related trade
portion is very a significant division in India.

1.2.1 RECENT TRENDS IN FINANCIAL SERVICES

1.Invest in digital security

2.The rise of robotics

3.Meeting the needs of the consumers

3|Page S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

1.2.2 INDIAN STOCK MARKET

Securities market as divided into three categories of participants , first the issuer of securities
and second one investors in securities and the intermediaries , in the market securities as to
interdependent and inspirable segments the primary market and secondary market

1.2.3 Primary market

The primary market is the element of the capital market that deals with the issuing of new
securities, companies , government , or public sector institution can acquire funds through the
sale of new stock or bond issues through the primary market.

1.2.4 Secondary market

The secondary market is where the investors of the securities or assets from other investors,
rather than from issuing companies and the national exchange such as the New York Stock
exchange and the NSDDAQ are the secondary market .The secondary market is an on going
market , which is prepared and organised with a place, that is a licensed broker, and the
exchange , a specialised trading organisation , in following the rules and regulations
established by the stock exchangers.

Stock exchange and bombay stock exchange (BSE) was and national stock exchange (NSE)
started in 1992 this is operational exchange in India.

1.2.5 BOMBAY STOCK EXCHANGE (BSE)

BSE has been asked to go ahead. Nowadays trading platform is clear and gives investors
price on a real time basis. With the introduction of depository and mandatory decline and fall
of share chance of blackmail reduce else. The trading screen gives you top 5 buy and sell
quotes on scrip. The stock market trading start at Monday to Friday. National stock exchange
was 30 stocks which make up the sensex and it included listed companies in stock market.

1.2.6 NATIONAL STOCK EXCHANGE (NSE)

NSE was the first to introduce electronic screen based trading and it include listed companies
in stock market. Is floated by major bank and financial institutions it is included in 50 stocks
in is index called nifty. FII s banks , financial institutions mutual funds are major players in
stock market so it can be very addictive , as in the former it is higher by stakes.

4|Page S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

1.2.7 HOW TO OPEN DEMAT ACCOUNT IN STOCK MARKET

To begin exchanging financial exchange in India , you need a demit and exchanging account
demit and exchanging accounts India are given by the two storehouses, NSDL and CDSL,
through business firms , likewise know as an offer agents.

✓ The exchanging account is the place you will put offers for purchase or sell orders and
demat account is for holding your offers in dematerialized from.
✓ The exchanging of offers in Indian financial exchange happen on two trades – the
Bombay stock exchange (BSE) and National stock exchange (NSE).

1.2.8 Steps to open a Demat account in share market

1.Find a merchant

The initial step is to locate a stock merchant or firm. Stock dealers are of two kinds – full help
and markdown. A full assistance representative furnishes an assortment o0f benefits
alongside purchasing and selling of offers, for example, research and exhortation just as
retirement and assessment arranging.

2.Compare financier rates

Each agent charges commission and certain expenses for handling financial specialists
request. These charges can fluctuate from agent to handle. A few gives rebate based on the
measure of exchanges directed. Consider this before opening on account. In any case, don't
over accentuation the point . you have to comprehend the offices advertised.

3.Complete KYC

You can visit the workplace of merchants or request that the specialist send its delegate to
your home with the record opening from and the know your client (KYC) from. You have to
top off these structures and submit it alongside character and address evidences, for example,
Voter ID card , PAN card, birth declarations identification, apportion card and so on. Interests
in protections markets are liable to showcase dangers , read all the related reports cautiously
before contributing. advanced record would be opened after all methodology identifying with
IVP and customer due persistence is finished. As pertinent , financier will be imposed at @Rs
10 for each executed request and not on rate premise.

5|Page S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

1.3 COMPANY PROFILE

Country of origin - India

Founded - February 2000

Headquarters - Mumbai, India

Website - www.sharekhan.com

CEO - Jaideep Arora

Branch Manger - Vinay R K

Promotes - Foreign promotes ,Indian promoters,

institutions, Non institutions , custodies.

Parent - BNP Paribas

Industry - Banking, Financial services and insurance

Branch Address - R Venugopal Arcade, #No.105 1st floor east of

Chord road, Vijayanagar club Road, RPC

Layout Vijayanagar, Bangalore-560040

Tel 080- 4932666 Mob : 9986514477

Share khan is the nation's largest single retail financier and the third largest in term of direct
and HDFC protection client base after ICICI. funding ESOP, IPO funding and the executives
are wealthy. Sharekhan was founded by the business person Shripal Morakhia based in
Mumbai in 2000 sharekhan had the lead online retail broking and used on the main
digitisation movement, When buying and selling of protections occurred and electronic
exchange in stock trades was presented. Sharekhan is currently a fully owned Banque Nation
ale de Paris (BNP) and Paribas backup.

Share khan employs more than 4,800 people in India through its parent organization S.S
Kantila ishwarlal Securities Limited (SSKI) and is available through 153 branches of more
than 2,500 co workers in more than 575 urban communities. The organization has 1.4 million
clients put together and implements more than 4 lakh exchanges for each day with regards to
a normal one according to the most recent figure, it is one of the major stockbrokers in the
6|Page S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY
INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

space with about 5 per cent of the total retail broking portion and is currently ranked 4th by
and wide. Being a full-service stockbroker, it provides its customers with research and
guidance through their in-house inquiries about group of specialists.

• Exchanging stages in sharekhan

This full-administration stockbroker has similarly compact stages of exchange for the
two work areas.
• Sharekhan Exchange Tiger
Exchange Tiger is a stock exchange program which can be used by clients from their
work areas or PCs. It's expressed to be as innovative as a dealer's terminal exchange
tiger creates you to exchange values, monetary forms, items, subordinates, IPOs and
shared assets across different budget sections.
• Exchanging application in sharekhan versatile
With regard to portable applications sharekhan has had a strange history. Over the last
couple of years, sharekhan has propelled various flexible applications and when one
application gets a lot of antagonism with regard to ranking and criticism, instead of
consolidating those inputs, the specialist is essentially propelled another, mostly
lightweight program.
They have mostly propelled another application with their image name itself as of
late. The app, the app, as it did not long ago, has received a generally positive reaction
from both Google play just as Apple store depends on size, execution, and accuracy.

Fig.1.1.Share khan ltd profile picture

7|Page S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

Share khan is the 5th biggest online brokerage in the country and following ICICI direct and
HDFC financial instruments in terms of customer base. It's one of India's online trading. It
provides a broader range of financial products and services including financial instruments,
sale of mutual funds, loan against stock, ESOP financing and asset management. Mumbai-
based entrepreneur Shripad Moraka formed share khan in 2000. The online retail broking
industry was popularized by share khan and financed on the first digital economy expression
when securities dematerialization (Demat) came into effect and electronic trading was
introduced in stock exchanges.

Share khan is now a wholly owned Banque National de Paris (BNP) and Paribas branch. The
company was a base of 2million customers and conducts more than 4 lakh trades a day on
average. It is one of the space 's leading stockbrokers with about 5 percent market share of
retail broking as per the latest figure, and is currently ranked 4th overall.

1.3.1 ABOUT BNP PARIBAS

BNP Paribas S.A is an multinational English banking company in the world that includes
total assets and currently exists in 2000, but has a corporate character that reaches bank to its
first establishment as a national bank in 1848.

1.3.2 BNP PARIBAS IN INDIA

For more than 150 years BNP Paribas has had a presence in India, having established its first
branch in Kolkata in 1860. Through its branch in eight key cities – Mumbai, Delhi , Kolkata,
Chennai , Hyderabad, Bangalore and Pune – BNP Paribas offers solutions in its three core
businesses – corporate and institutional banking, investment banking and retail banking –
many of them in conjunction with the strong local partners.

BNP Paribas has a presence in other industry through joint ventures in home commercial
bank services with the Sundaram group in life insurance with the Indian state bank, has fleet
management (Arval) divisions in the group and an asset management firm, BNP Paribas
mutual fund.

8|Page S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

1.4 PROMOTERS

▪ Officials
▪ Blackrock Inc

▪ Grand duchy of Luxembourg

▪ Share in the retail sector
▪ Belgian state (through SFPI
▪ Non – institutional European
▪ European institutional investors

1.5 VISION AND MISSION STATEMENT

Vision

To become the best brand in retail brokerage retail stock-marketing business.

Mission

To trained individual investors and empowered them to make better investment in good

decision using quality advice and preferential services.

1.6 Quality policy

• Setting of clients exposure limit

• Applicable brokerage
• Imposition of penalty/ Delayed payment charges by either party, specifying the rate
and period.
• Refusal order for penny stocks
• Shortages in obligations arising out of internal netting of trades
• Right to sell clients securities or close clients positions, without giving notice to the
client on account of non payment of clients dues.
• Conditions under which a clients may not be allowed ta take further position or the
broker may close existing position of a client / Temporary suspending or close a
clients account at the clients request.

9|Page S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

1.7 PRODUCT AND SERVICES PROFILE AREAS OF OPERATION

Fig.1.2. Products and Services in share khan ltd

1. Share khan IPO investment: You can invest in IOPs using share khan. Share the
investment services khan IOP is digital and easily accessible online.
2. Share khan Depository services: Share khan is registered with CDSL as a
participant in the depository. To get fast and journal very little transaction, you
can use demit service with share khan.
3. Sharekhan Intraday trading calls: Get implied volatility trading tips for most of
your investment through advisory service.
4. Share khan Frist Step Account: This account will give you step-by - step
guidance on how to trade in stock market, guidance and easy-to - understand
research project for beginners in stock market.
5. Share khan original account: customers will receive live analysis before, during
and after – market hours with this 100 percent online trading account from share
khan.
6. Share khan capital optimizer-portfolio management services (PMS): A team
of experienced professionals will manage the client's funds under the share khan
portfolio management service. The investment strategy of fund managers

10 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

emphasizes optimizing the returns on risk management based on the risk appetite
of the clients.
7. Share khan T+5 day Auto round off: This is a special function provided by
share khan to its customers where they can buy shares by paying a margin and can
either round off the position or take delivery of the stock (by paying additional
funds) during this five-day span until the time square defined by share khan.
8. Share khan mutual fund service: Invest big mutual funds with share khan share
the mutual fund service with khan helps you expand your investment
9. Share finder of khan fortune: Fortune finder is a motor used by artificial
intelligence to identify the alerts rely on stock / script movement, and guides you
with buying, Sell rating, hold it or stay away.
10. Patter finder: Patter finder is khan 's share finder equity advisory services. These
services are free to customers.
11. Share khan ranks: Share khan giving the script a rating that is doing its best in
financial matters
12. Share khan television: access khan television with professional guidance, market
research, IPO corner and stock ideas share khan.
13. Share khan NRI: Share khan provides a variety of services product and service
catering to NRIs requirements.
14. Sharekhan Financial Services Pvt Ltd: a Non-Banking SFSL Finance Company
(NBFC) has registered with Indian Reserve Bank

15. Broker Fundamental Research Services in sharkhan: it includes

• Flash news
• The Industry watch Report
• Stock Analysis Report

16. Broker Technical Research Services in sharkhan: It includes

• Future calls
• Online Charts
• Position calls
• Nifty Tracker
• Intraday calls

11 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

• Derivative strategies

1.7.1 PRODUCTS IN SHARE KHAN LTD

1. Classic Account
The customers are to exchange this account through the business website and a
financial retail expert who is unable to have a chance so instead needs to store capital
with someone that don't trade as much as possible. It is a speculators to buy and sell
the stocks in online highlights include mainly diagnosed banking watch records, de -
tangle and virtual communications, timing true portfolio in timely manner following
cautious interest and immediate cash push.

What are the features the customer this product:

• Fast money moves office against purchase and closes deals.

• Effective transaction fees.
• Online exchange contributes equity and derivatives through company website.

2. Trade Triger
This product is related to web based program application which is the securities are
equity , commodities, and the customer to purchase and sell the offer and as well as
go think right way. It is perfect product for all types of customers in share khan ltd.
What are the features in using the customer in this product;
• Fast integration of equity and commodity markets.
• Fast confirmation and execution of request.
• Warnings , and alerts
• Back up office to position direct telephone exchange.
• Live show duties

1.8 INFRASTRUCTURE FACILITIES

The share khan ltd one of the branches as located at Vijayanagar, Bangalore. The branch has
computer facilities and is fully furnished and well equipped for smooth functioning of the
activities. Proper lighting, ventilation, drinking water facilities is also arranged.

12 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

1.9 COMPETITOR’S INFORMATION

1. Angel Broking: Angel Broking is seen as one of share khan’s top

competitors. Angel Broking’s headquarters is in Mumbai, Maharashtra and
was founded in 1987 financial services industry. Angel broking generates 35%
of share khan’s revenue.
2. Karey: is one of share khan’s top rivals. Karey was founded in 1979, and its
headquarters is in Hyderabad , Andhra Pradesh. Karey competes in the
diversified financial services fields karey has fewer employees than share
khan.
3. Kotak Securities: Kotak Mahindra Bank is an Indian private division bank
headquartered in Mumbai, Maharashtra, Indian. In February 2003, Reserve
Bank of India (RBI) issued the permit to Kotak Mahindra Finance Ltd, the
gathering’s lead organization, to continue savings money business.
4. Motilal Oswal: Motilal Oswal is Share khan’s #3 rival. Motilal Oswal is a
public company that was founded in 1987 in Mumbai , Maharashtra, Motilal
oswal operates in the banks industry. Compared to share khan , Motilal Oswal
has been fewer employees.

Table. 1.1 Top 10 Competitors

Rank Company Leadership Employees Revenue

1 ZERODHA Nithin Kamath 1,300 $64.7M
2 IIFL (CO-Founder)Bali 15,000
Summit $533.3M
3 ICICI direct. Com (CEO)
CEO 130 $2.6M
4 Indian bulls Sameer Gehlaut 1,117 $440.4M
5 Reliance money CEO
Founder Input Input
6 Kotak securities Kamlesh Rao 22 $1.M
7 MOTILAL OSWAL (CEO) Somaiya 4,622
Aashish $305.3M
8 ANANDRATHI (CEO)
Amit Rajhi 1.000 $36.2M
9 HDFC securities (MD)
Dhiraj Rely 1500 $17.6M
10 KARVY (CEO)
C. Parthasarathy 15.000 $71.9M
(MD)

13 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

1.10 SWOT ANALYSIS

SWOT analysis refers to the framework used to evaluated a companies competitive position
by identifying its strengths, weakness, opportunities , and threats.

STRENGTHS
• Online as well as offline trading.
• Straight forward.
• Share khan was the first broker who bring the online trading platform in India.
• Share khan have the excellent reputation among the investors because of its better
services and solution of investors grievances within minimum time.
• Transparent

WEAKNESSES
• Absence of mindfulness among client.
• Lack of knowledge amongst the people about the Demat account and trading
account.
• Promotional activities conducted by the company are not sufficient to compete
with competitors.

OPPORTUNITIES

• Growing rural market

• Earning urban Youth
• Educating people about the benefits of investment to increase target audience.
• Now a days brokerage firm tries to attract new investors by educate them about
the stock market and government also tries to attract new investors to invest in
mutual funds because it consist less risk.

THREATS

• Economic measures by Government and RBI

• Entry of foreign finance firms in Indian market
• Regular Audit by SEBI

14 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

1.11 FUTURE GROWTH AND PROSPECTS

Bank Nifty saw significant addition in open interest in October and November , with majority
of addition taking place on the longer side. November’s long position have been carried
forward to December series, and so far, the index has been addition of more than 51% in
open interest. With major event lined up for the month, we believe there are multiple positive
triggers for nifty and bank nifty , and target in this series.

1.12 FINANCIAL STATEMENT

The financial statement used in the investment analysis is the balance sheet of the statement
of income and the statement of cash flow with additional analysis of the transaction ,
shareholders equity and retained income.

Computation of financial statement in the year ending January to December in 2018 to 2019.

Table.1.2. Balance sheet of share khan ltd

ASSETS 2018 2019

Total cash & due from Banks 185,488 155,423

Cash & due from Banks growth 3.57% -16.21%

Investment – Total 679,891 751,632

Trading Account Securities 114,615 124,224

Federal funds sold & Securities purchased 181,383 -

Securities brought under resales 181,383 -

Agreement
Treasury securities 66,305 -

15 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

Mortgage Backed securities 389 -

Other securities 71,707 -

Other investments 245,492 264,042

Investments growth 5.12% 10.55%

Net Loans 784,899 826,535

Consumer & instalments loans 755,725 790,087

Interbank loans 788,956 20,598

Lease financing loans 33,291 35,653

Unspecified /other loans 1,253 1,373

Loan loss allowances (Reserves) (24,081) (21,176)

Investment in unconsolidated subs. 5,772 5,952

Real estate other than Banks premises 715 -

Loans – 1 Year growth Rate 4.60% 5.30%

Loans (Total)/ Total Deposits 0.00% 0.00%

Loans (Total)/Total Assets 0.00% 0.00%

Net property , plant & Equipment 25,937 32,295

16 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

Other Assets (including intangibles) 352,872 387,920

Other Assets 340,602 376,251

Intangible Assets 12,270 11,669

Deferred charges 7,355 6,162

Total Assets 2,040,836 2,164.713

Assets- Total growth 4.67% 6.07%

Return On Average Assets - 0.37%

The above financial statement refers to the this study comparing the two years in 2018-19.
The total cash and due from banks amount in 2018 is 185,488 and the next year 2019 amount
will be decreased.

Previous year total growth will be higher side but the assessment year growth will be moving
loss side is -16.21% and comparing the previous year total investment is less then the
assessment year is more investor investing in stock market is $751,632.

The brokerage firm is federal funds securities sold and purchased the securities in 2018 but
2019 is no amount (nil) because the firm no any sold and buy activity or the securities.

Other investment will be increased in 2019 to compare the previous year and investment
growth all so moving high in 2019 is 10.55% will be increased.

Total assets in 2019 is $2,164, 713 and 2018 is $2.040.836 it indicates the total assets will be
increased in 2019 and assets growth rate all so increased 6.07% in the assessment year and
previous year is decreased 4.67%.

17 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

CHAPTER-2

CONCEPTUAL BACKGROUND AND

LITERATURE REVIEW

18 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

2.1 THEORETICAL BACKGROUND OF THE STUDY

2.1.1 PORTFOLIO CONSTRUCTION

Portfolio construction it is the process to choose the best securities mix for maximum return
by taking minimum risk.

A fund is a combination of different securities such as shares, bonds and money market
instruments. Investment diversification trends to spread risk across many assets so that equity

securities need to be build on efficient portfolio to ensure good portfolio returns.

Portfolio construction there are two types:

• Traditional Approaches
• Modern Approaches

Traditional Approaches in portfolio construction:

Under traditional approaches, an individuals financial plans is analysed for an individuals

income and capital appreciation needs and securities are chosen to meet those needs.

• The traditional approaches to consider the investors need, income or capital on the
basis of section of shares.

Modern Approaches in portfolio construction:

• Under the modern approaches of portfolio constructions it is all so knows as a

Markowitz approaches, it is the process of chose the securities on the basis of analysis
risk and return.
• It is the financial plan of the individuals to follow the terms of risk and return and the
individual put more effort to get maximum return for a expected for a minimum risk.
• The modern approaches to take the investors need form the based on market return or
dividend , and the investors risk tolerance take from the basis of selection of shares
the investors to get the return its depends up on market terms and condition.
• The most of the investors to take the ten to fifteen shares are selected after through
study and expected risk and return systemized for each shares.

19 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

• The investors in investing of the shares with a good return prospects is chosen and
portfolio of the appropriate the various shares it is the based on investors risk and
return.
• An investor may take an active or possessive approach managing his portfolio under
passive approach, whereas an active approach requires continuous risk assessment
and return on securities and replaces low-performance securities with high-
performance securities over time.

2.2 LITERATURE REVIEW

1. Dr, Sarang Shankar Bhola,(2016) in his article “ Investment socio, economic
profile and their investment pattern” distributed in the February 2016, in recent
times investment firms have developed as the most competitive group in the Indian
financial system. The reasons for the huge growth in the Indian capital market was
changes in the Indian economics system and the opening up of the economy. This
study discusses the effect of socio, economic variables investors intentions towards
investment. In this study higher income group of the investors shows the most of the
investors preference towards the risky investment pathway and the lower and average
income level group shows the investors preference towards insurance and bank as the
most preference investment channel.
2. Dr Muthu Meenakshi. M, (2017) , In his article “ Perception of investors towards
the investment pattern on different investment avenues: With Reference to India”
distributed in the journal of internet Banking and Commerce , 2017 noticed that
usually all investment avenues professed the channel risky of the investors the main
features of investments are security of principal amount liquidity income stability ,
approval and easy transferability. Investment channels like shares, bank, companies,
Gold and silver , real estate , life insurance , postal savings, & so on the required level
of investors to take the decision in based on the risk and return. The investment
securities are different choices from national savings certificates , provident fund ,
mutual funds schemes , insurance schemes , and real estate. In his paper concluded
that the fast world we all are investors to save a extra money including risk to more
profit. Most of the citizens chose bank deposit because of more respondents invested
for home buying and long term growth but most of the investors could not know how

20 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

to invest their money in mutual funds and shares. The researcher therefore wants to
check in this paper the earlier research work based on investors among the investment
channel to get as idea about the investment pattern.
3. AVV Kochi, (Kochi, Amrita , Vishwa, Vidyapeetham ,(2018) In there article “An
insight in to the savings and investment pattern of salaried employees working in
private sector of shipping industries at” distributed in the International journal of
pure & applied mathematics , (2018) it means investment is an operation restricted to
particular investor objectives it is the route through which smart money is transferred
to the surplus region the money is deposited by the investors with a specific purpose
such as return on investment and protection. This study understand the investment
pattern to take the 100 questionnaire based on the salaried employees of shipping
industries in Ernakulam district and those samples understand the investment
preference of salaried group of people working in private sector of shipping industries
in Ernakulam district. The researcher used convent sampling method for selecting the
100 sample of the employees and to collected the information to analyse the data
using statistical tools like the chi-squire test and correlation analysis and percentage
method. The main aim of the study suggested that the employees savings are directed
to their personal experience such as a children education , marriage ,etc.
4. Ronikadevi Sharma & Zankhana Atodoria, (2019) In his article “Investment
pattern of salaried class of Somnath study of various investment options
available” distributed in 11 June 2019 , in this researcher aim is to analyse the
awareness perception and behaviour regarding the different investment channel in this
include the salary people and various demographic factors to investment pattern.
Many people are don’t know about investment how to invest money in stock market
and the people are ready to take risk for there funds , so they prefer invest the money
in bank deposit , insurance, post office savings etc. because people thought money
will be safe and safety in above investments this data to researcher to collected from
the structured questionnaire distributed to 100 people of Somnath area. This data was
analyse to using the descriptive research and chi-squire technique to applied the those
demographic factors and motives of savings and using SPSS system software and
result is most of the people to prefer the investment channel it include the people
salary , age , motives , and savings.

21 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

5. Filatotchev, J. Reinecke, (2020), In his article “ New investor categories agility &
HRM the case of sovereign wealth funds” distributed in the journal Human resource
management review, 2020 this article discussed the existing literature an SWF’s and
the business with a consequences of SWF strategic agility and human resource
management. This paper outlines three main channels through which sovereign
wealth fund (SWF) investment has implications for employee the first SWF’s
influences macro economic environment , second one effect labour conditions
institutional conditions in different countries shape the behaviour of SWF’s around
the world. Which in turn this effects of HR strategy and practices, and third one is
SWF’s can has a direct effect on the corporate governance and hence HR strategies
and employees of organisation’s in which they invest , we review and discuss those
three channels and outline avenues for future research.
6. Amelia Bilbao – Terol (2015) In his article “ Multi Criteria decision making for
choosing socially responsible investment within a behavioural portfolio theory
framework. A new way investing into a crisis of environment , distributed in the
31 July 2015, the current economic crisis fulfils the financial social responsibility of
on time of many excesses with negative impact that this study addresses two growing
sources of financial literacy and the behavioural portfolio theory with mental
accounting and the socially responsible investment (SRI) , promoting SRI regarded by
lot of financial exports. Policy makers and researchers from the field of economic and
social sciences it is one of the potential solutions in order to avoid future risk
therefore new models for this investment approaches are necessary we all are try to
support the class of investors that select there investments under a mental accounting
framework and also they want to archive a certain levels of SR quality in there
portfolios.
7. Selim Aran , Asiye Nur Zeng in, (2016) In there article “ Influence of financial
literacy and risk perception on choice of investment “ distributed in the 24
November 2016 , In the recent years variables the affecting the investment
preferences of individuals investors are an issuing the attention of financial analysis.
In this study we are investigate the variables which are the affecting the investment
preferences of individual investors. Personality trait it is not an important variable but
it is the other hand our evidence shows that level of financial literacy and risk

22 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

perception are important and it is all so affected by financial literacy and gender but
marital status is not effective at the same level.
8. Heejin yang , Doajin Ryu , (2017) In his article “ Investor sentiment asset
returns and firm the Korean stock market” distributed in the investment analysis
journal , 16 February 2017 in this study investigates the impact of investors sentiment
assets returns with regard to firm characteristics by analysing a specific Korean stock
trading data set containing rich information an investors types and segments we found
that high investor we conformed that high investors sentiments leads to higher stock
returns. The positive association between investors segment and stock returns is
highly significant after controlling the trading behaviours other risk factors and firm
characteristics interestingly investors sentiment has stronger effects on small firm low
period high book to market ratio. High excess return and highly stocks traded by
individual effects the among stock with specific firm features my be due to the trading
of individual investors .
9. Noura Mettawa , Kabir Hassan , (2019) In his article “ Impact on behavioural
factors on investors financial decisions” distributed in the International journal of
Islamic and middle ester finance and management , 4 March 2019 ,this paper aims to
the investigate the relationship between the investors demographic factors like age,
gender, education levels and experience and there investment decision through the
behavioural factors like (sentiment over, confidence , overreaction , and under
reaction ) variable Melter an ancient stock market. This study collected the data from
a structured questionnaire a survey carried out of among 384 local Indian, Foreign,
institutional and individual investors and to using the regression method to analyse the
data and its an effects of an investors demographic factors are investment decision
through the behavioural factors based and this paper including the some findings :
• Those are all behavioural factors to effect the investment decision.
• It all so effect on investor demographic factors it positive significant effect
on investment decision by investors.
10. Subhas Ullah & Zheng Wang , (2019) In there article “ Risk perceptions and risk
management approaches of Chinese overseas investors on empirical
investigation “ distributed in the research in International business , January 2019 ,
in this papers to presents scientific evidence on how Chinese firms view and resolve

23 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

risk associated with there investment abroad using a first hand survey to data set of
Chinese firms who invest abroad. The level of different types of perceived risk and
the risk management approaches taken by these firms. These variations are assessed
with the respect of the three prominent factors firm ownership , structure , investment
motives , and the back country institutional quality our the prof uncovers the
significant degree and pattern of diversity in the strategic behaviour of Chinese in the
investors the risky environments.
11. Lauren , A cooper Jill Weber , (2020) In his article “ Does benefit corporation
status matter to investors on exploratory study of investors perceptions &
decision” distributed in the 6 January 2020 , in this study investigate weather the
discloser of a firms to decision the organise as a (BC) benefit corporation rather than
the traditional corporation (CC) this are two influences the investors. In this survey
collected the data of investors 136 and including the 57 MBA students and to find out
the expect BCS to attain higher future corporate social responsibility (CSR) and the
CCS have including both the equal CSR ratings. Approximately 1\3 of our sample to
prefer the invest BCS when CCS have greater financial returns indicating a ability by
same investors to sacrifice personal financial profit for the social good our results
suggest that investors consider the information provided in BC reporting as creditable
and important in there investment choices we extent the CSR discloser literature by
indicating the how investors weight this new type of CSR information which is may
be affect on how BCS fore as publicity traded organisations .
12. Mahammad Zubrairtauni & Salman Yousaf , (2019) In his article “ investors
advisory big five personality similarity & stock trading performance “ distributed in
the Journal of business research , 9 December 2019 , the purpose of the study is to
investigate how investors advice to differences in a big five personality how are
related to stock trading performance. It is used online survey questionnaire to
collected the data from 3\4 investor advice in the Chinese stock market it is the
difference between the investors and advisor was determined using difference score
analysis. The results shows the both of the investor – adviser similarity in terms of
opinions extraversion , conscientiousness , and agreeableness , is positively related to
investors stock trading performance on the other hand the investor – advisor in equal
in stress negatively effects the investor trading performance. another analysis also
showed that investors – advisor similarity in demographic factors such as a gender .

24 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

age, and education level it is also related to stock trading performance. This study
suggest that retail investors show different trading results so that both natural and
exogenous influences may explain the trends of investor trading performance.
13. John. L , Campbell Matthew. D & James R. Moon , (2019) In his article “
personal stock holdings and investors response to stock analysis on social media
“ distributed in the 07 July 2019 , motivated by concerns that financial positions
impede analyst objectivity we analyse investors interpretation of perception social
media outlets targeting searching providing alpha. We that NPA positions directly
contributed to short period returns around the report which constantly holding the
information in the article as well as news from professionals analyst managers and the
business press. This are all concerns that stock positions are associated with based on
survey number evidence that NPA positions to reduce the investors responses to the
tone of the article. In fact the evidence suggests that the holding a positions increase
the size of the investors responses to both positive & negative tone although this
effect is contrary to the NPA ‘s stock position over all the study concluded that
provincial to regulars means the NPA stock positions do not decrease the creditability
and descriptiveness of there analysis.
14. Thomas Renault , (2017) , In there article “ Intraday online investor sentiment
and return patterns in the U.S stock market” distributed in the Journal of banking
and finance , November 2017, we are improving a novel approach of to derive
investors sentiment from managers posted on social media before we explore the
relationship between the online investors sentiment and intraday stock returns. The
managers using the an more expensive data set of the posted on the social networking
turns portfolio network we construct a lexicon of words in used by the outline
investors when they are shares opinions and ideas about the bullishness of the stock
market. We shows that a straight forward and reliable approach outperforms standard
dictionary based methods used during literature while maintaining quality with the
more complex systems to machine learning aggregating individual message sentiment
at half hour intervals we provide empirical evidence that outline investors sentiment
helps to the forecast interlay stock index returns. After controlling for past market
returns we find out the first half hour change in investors sentiment and predicts the
market in cast half hour S & P 500 index. ETP return evaluating the consumers
customers self reported investment keeping the time and experience level. We are

25 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

noticed that the intraday feeling effects are guided by a change in inexperienced
traders feeling over all findings provider clear scientific evidence of felling driven
activity trading of the intraday tools.
15. Vahana , golstyan & Adnan velic , (2018) , In this Article “ International
investment patterns the case of germen sectors “ distributed in the 14 march 2018 ,
in this paper we explain the newly augmented coordinated portfolio investment
survey data of the IMF ( International monitory fund ) to analysis the cross border
inter sectoral portfolio assets holdings of Germany in our analysis to reveals a
significant degree of heterogeneity in the international assets positions of various
germen holdings entities. The findings of our study also suggest the differential
relationship between the portfolio holdings and to set of the gratuity – style used the
technologies to change the personal , physicians , gravitational design controlling
those factors across holder issuers pairings of various sectors. We concluding that
aggregate level patterns in international portfolio holdings may not be include and
present in inter sectional data.
16. Sac Ulsan , Phoebe , and Kanamura , Takashi (2019) , in his article “ Examining
risk and return profiles of renewable energy investment in developing countries “ in
this paper examines the risk and return profile of energy companies with renewable
energy (RE) investment in developing the countries’ taking the Philippines’s as our
country case study. First we analysis the impact of the global RE project specific risk
and return RE project using a simple capital assets pricing model (CAPM) by bench
marketing stock returns of those companies either a global S & P (S&PGCE) index of
the local Philippines stock exchange (PSE) in our findings demo grate that the short
and long term investments interval. A pure retail earnings company the energy
development corporation (EDC) it is affected by the those two risk examined in short
term is while those of with partial investment the renewables are affected and next we
calculate the companies abnormal returns by using the Jenson alpha results it’s the
EDC alpha values are positive and all short , medium , and long term investments
both are indicates and suggested that Philippine retail earnings companies are using
possibly under estimated that both of the global RE market and the Philippine stock
market and finally we analysed the new tariff level feed using EDC beta results and
solar PV FIT structure results shows that the FIT to generate the rate & profit to both
the global , local retail earnings companies risk and return of the investors perspective

26 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

but it is higher than the desired FIT rate from to the policy makers. Perspective and
last concluding that aids in investment decision making by showing the differences in
investments time from and retail earnings shares could impact investment the to
increasing and out come of the developing countries.
17. DC Bortali D, Dacosto N. Govlart , M (2019) , In this article “ personality traits
and investors profile analysis a behavioural finance study “ distributed in the 27
March 2019 , in this study investigates which of four paradigms best one the risk
profile manifest buy investors in there financial asset investment decisions. The
modern financial theory is based on the concept of homo economics adopted to the
neoclassical economies in this idea self interested and perfectly the rational agent
maximizes. In this utility by the choosing at the each point in this time the best
options available once his portfolio selection theory was established this perfect
rationality combined with the efficient market hypothesis was assumed by the which
is concerned that the starting point of modern finance theories the open economy
concept was formally set out by the modern financial theories are founded on the
assumptions of rational investors and open market. It consist of agent a behavioural
finance is not perfectly rational or a normal human who are acts an takes decisions
under the influence of emotions and cognitive errors subsequently several efforts was
made to understand which factors could influence the behavioural of economic agents
research since there can determine the each individual processes the information in
the market and change the relationship to the risk and personality.
18. Dmitri, Boreiko, Dimche (2020) , In this article “ serial and large investors in
initial coin offerings” distributed in the 19 January 2020 , in this paper to the provide
systematic evidence regarding the investors behavioural in the initial coin offerings
CICOS in this investment patterns and the role of the success of the campaigns the
using hand collected the data on 472 public token sales over the period of 2013-2017
we advance the ICO. In this paper demon straining that some contributes the invest in
more than the one companied the such serial investors to contribute the earlier they
are not more informed and to pic the better quality ICOs. Only large serial investors to
invest the more than the campaigns to raise more funds to attracts more contributes
the more hard caps & distribute taken that are listed on crypto exchange our findings
pose the question of whether regulatory or industry self regulatory knowledge

27 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

measures agreements are necessary to protect smaller retail ICO investors who shows
the positive learning behaviour.
19. Friedman polzin Florian Egli (2019), In this article “ How do polices mobilize
private finance for renewable ensure – A systematic review with an investor
perspective” distributed in the 15 – February 2019 , in this paper with the urgency of
climate to change and billions of money spent globally on polices to promote
renewable energy is crucial to understanding which polices are active extensive work
on RE growth polices over the last two decades resulting in inconclusive results on
the efficacy of private finance mobilization of polices on two key investors decision
metrics to investment risk and return.
20. Demir , Bektic Britta Hochenberg & Drik Schierck , (2020) “ Factors based
investing in government bond markets , a survey of the current state of research
“ distributed in the journal of assessment management 11 march 2020 , in this paper
over the decades factor investment has become very common , especially with regard
to equity markets. Since widening Fam’s French factors to corporate bond markets ,
recent work focuses more frequently on government bond space and shows that there
is strong empirical evidence of substantial government bond factors. Voices which
state the opposite refers to outdated samples of data. By recording somewhat
homogeneous recent empirical data , this analysis highlights the attractiveness of
more nuanced investment approaches to the segment of government bonds, which are
well established in equity and even corporate bond markets.

28 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

CHAPTER-3

RESEARCH DESIGN

29 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

3.1.Meaning

Research methodology is refers to the system used to gather information and data for
business decision -making purpose. It include the publication analysis , interviews, survey
and other research methods , and may include current and past research information .

3.1.1 DESCRIPTIVE RESEARCH

Descriptive research means this identified the characteristics of the non-studied population it
does not answer the questions about how/ when/ why the question and answer it includes the
how, when , why, the situation of the person and population. So the study prepare the
questionnaire based on the above questions so it come under the primary data so the study

take descriptive research.

3.1.2 EXPLORATORT RESEARCH

Exploratory research means it is if the perfect nature of the problem to be solved is shown it
is difficult to take care of it without any live example or practical situation so it take and do
exploratory research and it comes under the secondary data so it is not come in my study
because the exploratory research already the researcher to be creative the in order to gain the
data and information about the subject. The next generation will be used for the this analysis
data and studied.

3.1.3 DATA SOURCES

This analysis is used for both primary data collection and secondary data sources dependent
on the data set.

Primary data

The essential information were gather through the systemized survey , comprising of twenty
inquiries , and we were posed by the respondents to fill in the poll.

Secondary data

The secondary data available from books, websites, catalogues, etc

SAMPLING DESIGN

Definition of population

30 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

The study take the all respondents data in share khan limited company.

Sampling procedure

This study to take the sampling procedure of a technique of non- probability sampling was
introduced that is convenience sampling procedure it is a simple sampling method.

Sampling Size

The study was selected from target population to take 100 samples of clients.

3.4 STATEMENT OF THE PROBLEM

In this present scenario the investing has become a most important aspect , while brokerage
companies don’t have enough idea about how to deal with the investors as per their
investment patterns and risk profile.

3.5 NEED OF THE STUDY

• It allows the investors to know their attitude to the risk.

• It is especially for the specialist to use the share khan ltd to handle investors or
brokers as indicated by the risk profile.
• Understanding the investment concept and risk involved with is highly fundamental
for the analyst.

The analyst should realize the financial specialist's venture design and the risk associated
with the contributing the cash and how their frame of mind and allurement change where
there is an instability the offer market. It is particularly fundamental specialist to propose the
SHARE KHAN LTD that how it should manage the investors or brokers as indicated by the
risk profile. So it is extremely fundamental analyst to consider the Investment design and the
risk engaged with it. What's more, it knows the investors frame of mind towards the risk.

3.6 OBJECTIVES OF THE STUDY

• To studying investors risk – bearing ability based on demographic profile.

• This study knowing investors risk profile.
• Review of gender-based risk limitation ,training, jobs, age family pay and number of
staff.
• This study consider the risk profile of financial exports.
31 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY
INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

3.7 SCOPE OF THE STUDY

• People are investing money to generate good returns.

• All investors have different risk behaviours.
• Their risk profile or strength, including how comfortable they are with the risk
• Getting cash or revenue from their investments, should be carefully considered.
• The study investors risk profiles depend on their statistical structures or attributes.

The analyst should know the investors venture design and the risk engaged with the
contributing the cash and how frame of mind and allurement changes when there is
unpredictability in the offer market. It is particularly fundamental for the analyst to propose
the SHARE KHAN capital that how it should manage the financial specialists or dealers as
indicated by their risk profile. So it is fundamental for the scientist to ponder the investment
example and risk associated with it. Also, it knows the financial specialists attitude towards
risk.

3.8 RESEARCH METHODOLOGY

Designing research Descriptive research

Information source The primary and secondary data received.

Primary data: Primary data collected through the questionnaire survey from their
respondents.

Project to sample

Form of sample: 100

Research instrument Quick sampling process for convenience.

Used statistical methods

This study used simple tools that are data analysis purpose they are follows.

• Graphs and charts and

• percentage method

32 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

3.9 HYPOTHESIS

• Null hypothesis(H0) Their is no significant difference between the investment

pattern and its effect on risk profile.
• Alternative hypothesis(H1) There is a significant difference between the
investment pattern and its effect on risk profile.

3.10 LIMITATIONS OF THE STUDY

• In this study the time allocated for the company was one month.
• Many knowledge may not be exactly accurate.
• Questionnaire duration.
• Wrong reaction.

3.11 CHAPTER SCHEME

1) INDUSTRY AND COMPANY PROFILE:

In first chapter it refers to over all basic information about the our organisation it includes
the Industry profile, company profile, promoters how to work in the organisation and
company vision and mission , competitors and strength , weakness, opportunities, threats .of
the organisation , I showing profit and loss account of the company financial information all
things discus in first.

2) CONCEPTUAL BACKGROUND AND LITERATURE REVIEW:

In second chapter it refers to background of the organisation and study, literature review in
different author’s to explain same topic in different way this are all discus in second thing.

3) RESEARCH DESIGN:

In third chapter it refers to how to research in the organisation and what are the data sources
included in the organisation and what I select the topic related organisation needs, scope ,

33 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

objectives ,and importance of the study. And to find out the what problems to face the
organisation and limitations , over all it showing to inside the organisation.

4) DATA ANALYSIS AND INTERPRETATION:

In fourth chapter to collect the customers data sources and analysing the data interpretation
and prepare the questionnaire it based on customers demographic factors.

5) FINDINGS, SUGGESTIONS AND CONCLUSION:

In fifth chapter it includes the what are the findings of the project and organisation explain in
the last chapter , and in my own words I concluded the project and what I understand my
project base I give the suggestions to the organisation how to build and improve the stock
market

34 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

CHAPTER-4

DATA ANALYSIS AND INTERPRETATION

35 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

4.1.Meaning
Analysis of data can be defined as the process of data collection , modelling, and
transformation in order to obtain useful information , recommendations , and conclusions in
decision- making. Interpretation can be describe as the process by which the factors that tend
to explain what was observed in the analysis by the researcher can be better understood.

1) GENDER LEVEL OF INVESTORS?

Table.4.1 Gender level of investors
MALE 80

FEMALE 20

ANALYSIS:

From the above table it shows clear picture the males are more to investing money in stock
market and females is less.

GENDER
100
80
80
60
40
20
20
0
MALE FEMALE

Fig.4.1 Classification of Gender level of investors

INTERPRETATION:

On the above figure showing the gender level of investors. Were out of 100 respondents 80%
of investors are male and remaining 20% are females respondents and concluding that male

36 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

are more to investing in stock market. Because in the population male are more interesting to
invest more money and get a high returns.

2) AGE LEVEL OF INVESTORS:

Table.4.2 Age level of investors

20-24 6

24-34 30

34-44 40

44 and above 24

ANALYSIS:

From the above table it shows the age is a very important role in investment activities.

AGE
45

40

35

30

25

20

15

10

0
20-24 24-34 34-44 44 and above

Fig.4.2. Classification of Age level of investors

37 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

INTERPRETATION:

The above analysis explains age group of investors a very important role in investment
activities. And this chart shows the age group of 24-34 and 34-44 to age level of investors is
70% are higher in share market. And remaining the 30% of age level investors is less then
the investing the money in stock market. Because 70% of age level of investors getting more
income and it included in experience persons know the more knowledge about the stock
market.

3)EDUCATION LEVELS OF INVESTORS:

Table.4.3 Education level of investors
PUC or Below 14

Graduate 36

Post Graduate 43

Others 7

ANALYSIS:

From the above table shows the literacy level of investors in investment pattern.

EDUCATION LEVEL OF INVESTORS

50
45
40
35
30
25
20
15
10
5
0
PUC or below Graduate Post Graduate Others

Fig.4.3 Classification of Education level of investors

38 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY
INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

INTERPRETATION:

The above analysis data shows the education level of investors that the maximum number of
investors are post graduate is 43% and graduate people are 36% and remaining the 21% of
investors are PUC and others and it clearly mentioning the more educated people to investing
money in stock market because the graduate people knowing more marketing knowledge and
collecting the information more in stock market that’s way the graduate people investing the
money in share market.

4) OCCUPATION OF INVESTORS:

Table.4.4 Occupation level of investors

Business 30

Employees 52

Home makers 05

Professionals 13

Others 0

ANALYSIS:
From the above table it shows the clear picture govt. and private sectors employees
are investing more money in stock market.

OCCUPATION LEVEL OF INVESTOS

60

50

40

30

20

10

0
Business Employees Home makers Profesionals

Fig.4.4 Classification of occupation level of investors

39 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

INTERPRETATION:

In this above study explain the occupation level of investors out of 100 respondents. was 52%
of employees and 30% of business people more investing the money in investment and
remaining 18% of people home makers and professional’s is less then then the investing the
money. It shows that the workers of government and private parts are putting more in the
offer market since they are having adequate cash in their grasp and keen on bringing in cash
out of it. Also, proficient are of 13% in the offer market and they are gaining most
noteworthy cash in the offer market since they are having polished skill in the venture
movement and they are utilizing proficient mentality in the speculation action.

5)ANNUAL INCOME OF INVESTORS:

Table.4.5 Annual income level of investors

Up to 1 Lakh 11

1 Lakh To 1.99 17

2 Lakh To 2.99 32

3 Lakh And Above 40

ANALYSIS:

From the above table it shows the investing level is less and high class people to investing
more money in stock market.

ANNUAL INCOME OF INVESTORS

50
40
30
20
10
0
Up to 1 Lakh 1 Lakh to 1.99 2 Lakh To 2.99 3 Lakh And Above

Fig.4.5 Classification level of investors annual income

40 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

INTERPRETATION:

In this above chart out of 100 respondents shows the annual income level of investors 40%
of investors annual income is high above 3 lakh and 32% of investors annual income is 2 lakh
to 2.99 the total 72% of investors more then to investing the money and in remaining 28% of
investors income is below 2 lakh because our investing level is less so in this study is high
class people to investing the money because this are all people earning more money and all
investing the money in stock market.

6) NUMBER OF DEPENDENTS IN FAMILY:

Table.4.6 Number of dependents in family
1 2

2 18

3 43
4 34
5 and above 3

ANALYSIS:

From the above table it shows the depending and responsible people to earning money in
their families.

NUMBER OF DEPENDENTS IN FAMILY

50
45
40
35
30
25
20
15
10
5
0
1 2 3 4 5 and above

Fig.4.6 Classification of number of dependents in family

41 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

INTERPRETATION:

In this above data analysis showing that number of dependents in family out of 100
respondents 43% of family in 3 members depending those are three members earning in the
families. And 34% of families depending in 4 members in this family earning members is
high and remining the 23% of members in below 3 so this family income is low that’s way
this people investing level is moderate and more then 4 members in family this people
income level is high because four members income level is high so this families to investing
more money in stock market.

7) INVESTORS FAMILY INCOME?

Table.4.7 Investors family income

Below 5 lakhs 30

5- 10 lakhs 31

10-15 lakhs 22

15 lakhs and above 17

ANALYSIS:

From the above tables shows the family income of investors in number of earning members
in families.

FAMILY INCOME OF INVESTORS

35 31
30
30
25 22
20 17
15
10
5
0
Below 5 lakhs 5-10 lakhs 10-15 lakhs 15 lakhs and above

Fig.4.7. Classification of investors family income

42 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

INTERPRETATION:

In this above study shows that out of 100 respondents family income level of investors below
5 lakh 30% of investors and 5-10 lakh 31% of investors including in this data and remaining
22% of investors is 10-15lakh and 17% of investors in above 15 lakh. It shows 5-10lakh
investors investing more money in stock market and other investing the money is less then to
investing money. Because our income is less then the 5- 10lakh earning level is low

8)INVESTMENT OPTIONS OF INVESTORS:

Table.4.8 Investment options of investors

Equity 53

Commodity 14

Currency 05

Derivatives 28

Others 1

ANALYSIS:

From the above table it shows the clear picture more investors to investing the money in
equity shares because it is the best sources in investment options and getting high returns.

INVESTMENT OPTIONS OF INVESTORS

60 53
50
40
28
30
20 14
10 5
1
0
Equity Commodity Currency Derivaties Others

Fig.4.8 Classification of investment options of investors

43 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

INTERPRETATION:

In this above study shows that out of 100 respondents, 53% of investors are investing in
equity shares , 14% of investors are investing in commodity security and remaining 5% of
investors currency , in 28% of investors in investing derivatives and only 1% are investors to
investing in others. In this data shows the more then of the investors go for equity shares
because it is best sources the investors investing the money and good benefit of the investors
not getting any loses for this because how much the investors to investing the money return in
minimum initial investment amount will be get and increase the principal or face value
amount.

9)WHY DO THEY ARE INVESTORS PREFER THE ABOVE INVESTMENT

OPTIONS?

Table.4.9 Investors to prefer the investment options

Good returns 42

Assured returns 28

High returns 24

No risk involved 6

ANALYSIS:

From the above table shows the more of the investors to prefer the high returns and less
number of investors to prefer no risk in share market.

INVESTMENT OPTIONS
60
42
40 28 24
20 6
0
Good returns Assured returns High retuns No risk involved

Fig.4.9 Investors to prefer the above investment options

44 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

 INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

INTERPRETATION:

In the above study explain that out of 100 respondents 42% are investors prefer the good
return of investment option, 28% of investors prefer the assured returns , and remaining the
30% of investors to prefer the high returns and less number of investor prefer no risk
involved in investing the money in investment. Because the all investors thoughts to investing
the money in stock market they are investors expecting good returns and some investors
expect assured returns equal they are investors are investing amount return in investment.

10)HOW MUCH PERCENTAGE OF TOTAL INCOME THEY WILL INVEST?

Table.4.10 Investors to invest money in based on total oncome

5% below 8

6 to 10% 25

10 to 15% 36

16 to 20% 31

ANALYSIS:

From the above table it shows the maximum number of more percentage of investors to
investing money in share market.

PERCENTAGE OF TOTAL INCOME

40
35
30
25
20
15
10
5
0
5% below 6 to 10% 10 to 15% 16 to 20%
Fig.4.10 Investors to invest money in total income

45 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

INTERPRETATION:

The above examination is demonstrating that out of 100 respondents, 8 contribute beneath
5% of their salary, 25 individuals contribute 6 to 10% of their pay, 36 individuals contribute
10 to 15% of their pay and 31 individuals contribute 16 to 20% . The investors in stock
market to invest the money in this data minimum number of investors to invest 6-10% and
more than 10-15 % of the investors to investing the money in stock market.

11) WHAT TYPE OF RISK YOU WILL EXPECT WHEN THEY INVEST IN SHARE
MARKET?

Table.4.11 Investors to analysing the risk to invest money in shares.

No risk 12

Nominal risk 38

Moderate risk 44

High risk 06

ANALYSIS:

From the above table shows the clearly non of the investors do not accept the any losses and
take moderate risk.

RISK
50 44
45
38
40
35
30
25
20
15 12
10 6
5
0
No risk Nominal risk Moderate risk High risk

Fig.4.11. Investors to analysing the risk in share market

46 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

INTERPRETATION:

In this study out of 100 respondents 44% of investors to take moderate risk and 38% of
investors to take nominal risk , 12% of investors not take any type of risk remaining the 6%
of investors to take high risk when the investors to invest in money in stock market and in
this more of the people go to take the moderate risk. Because none of the investors do not
accept the any losses it means the people invest the how much amount half of the amount will
be return that’s way the investors to take moderate risk.

12) HOW LONG YOU HOLD THE SECURITIIES?

Table.4.12 Investors to hold the securities

For a day 02

For a week 15

For a month 35

One year and above 48

ANALYSIS:

From the above table shows that the investors to hold the securities in short term and long
term process.

INVESTORS TO HOLD THE SECURITIES

60

50

40

30

20

10

0
For a day For a week For a month One year and above

Fig.4.12 Investors to hold the securities in period of time

47 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

INTERPRETATION:

In this above graphs to take the out of 100 respondents one year and above 48% of investors
to hold the securities in stock marker and 35% of the investors to hold the securities in a for
month and the remaining the investors to hold the securities in for a week 15% , and for a day
2% of investors to hold the securities in share market. And the investors to hold the securities
in short term and long term process & to get a good return.

13)THEY ARE READY TO ACCEPT LOSSES IN EXEPTATION OF HIGHER

LONG TERM RETURNS?

Table.4.13 Investors ready to accept losses to getting higher returns

Strongly disagree 05

Disagree 05

Neither agree or nor disagree 40

Strongly agree 50

ANALYSIS:

From the above table it shows the keeping money safe is better than getting higher returns in
the options of maximum investors.

HIGHER LONG TERM RETURNS

60
50
40
30
20
10
0
Strongly disagree Disagree Neither agree or nor Strongly agree
disagree

Fig.4.13 Investors ready to accept losses in getting good returns.

48 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

INTERPRETATION:

In this study showing that out of 100 respondents 50% of investors to strongly agree
expectation losses of higher long term returns and 40% of investors neither agree or nor
disagree of losses to higher long term returns and the remaining the 5+5,10% of investors to
disagree and strongly disagree of investors to take losses. Because its come natural elements
in this word the people to understand the situation on the stock market it explain the keeping
money safe is better than getting higher returns is the options of maximum investors.

14)THEIR INVESTMENTS WAS FALL IN VALUE BY 15% OVER A PERIOD ONE

YEAR, WHAT WILL THEY DO?

Table.4.14 The investors fall in value of money over a period they will invest half
of the money

Delete all cash from the equity market 05

Pull money out and move to safer investment 10

Wait until the price falls and consider 40

afterwards

Stick to investment 20

Invest more money in the same investment 25

ANALYSIS:
From the above table shows the most of the people through only to save and safe the money.

49 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

OVER A PERIOD OF TIME

45

40

35

30

25

20

15

10

0
Withdraw all money Take out some Wait until the Stick to investment Invest more in the
from share market money and move to market recovers and same investment
safer investment then consider

Fig.4.14 The investors invest in half of the percentage

INTERPRETATION:

In this above study out of 100 respondents 40% of people wait until market recovers and then
consider whether invest are not and 25% of investors to invest more money in the same
investment , remaining the investors 20% of investors to stick to investment , 10% of the
investors to take some money and move for safer investment and one of the last 5% of
investors to withdraw all money from share market. Because the most of the people through
only to save and safe the money.

50 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

15)No. OF EARNING MEMBERS IN FAMILY?

Table.4.15.Earning members in family

1 15

2 30

3 and above 55

ANALYSIS:

Form the above table shows the more earning members in family investing more money in
share market.

No of Earning members
60

50

40

30

20

10

0
1 2 3 and above

Fig.4.15 Earning members in family

INTERPRETATION:

The above out of 100 respondents said that 15+30 of the 45% of investors to earning of the
more money 1&2 of the families and remaining 55% of the respondents states that if the
earning member in the family are more ,then they will have enough investment in investing in
the stock market .

51 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

16)TYPE OF INVESTORS?
Table.4.16 New generation investors

Hereditary investors 60

New generation investors 40

ANALYSIS:

From the above table it shows the new generation people know the more knowledge.

TYPE OF INVESTORS

40

60

Hereditary investors New generation investors

Fig.4.16 New generation of investors

INTERPRETATION:

The above study that out of 100 respondents in stock market involving 60% of hereditary
investor and 40% of new generation investor they are in stock market. Because the new
generation people to know the more knowledge in share market and investing more money.

52 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

17)WHAT TYPE OF CATEGORY OF INVESTORS?

Table.4.17 Category of investors

Long term investor 40

Day trader 30

Both 30

ANALYSIS:

From the above table shows the clear picture more of people invest in long term and day
trader.

CATEGORY OF INVESTOR

30
40

30

Long term investor Day trader Both

Fig.4.17 Category of investors

INTERPRETATION:

The above study out of 100 respondents that the 40% of people invest in long term investor
and 30% of day trader investor and both 30% is investor in stock market because more then
people invest in long term and day trader all so. Because long term investor get more returns
and risk in investment.

53 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

18)WHAT TYPE OF OPERATED?

Table.4.18 Investors to invest money in primary market or secondary

market

Primary market 50

Secondary market 50

ANALYSIS:

From the above table shows that the its depends up on investors mind because the investors
invest money in primary market all so and secondary market all so

TYPE OF OPERATED

50 50

Primary market Secondary market

Fig.4.18 Investors to invest money in both the markets

INTERPRETATION:

The above study shows that the out of 100 respondents in 50% of people investing in
primary market and 50% of people investing in secondary market they are investing money in
stock market. In primary market the investor only buy the securities from the bank that the
did the initial underwriting for a particular share and the primary market only to buy the new
securities in the market. And the secondary market the investors to invest in more money
because it helps the buy or sell the securities in stock market and to earn more money and
getting good returns

54 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

19) WHAT PERCENTAGE OF YOUR SAVINGS INVESTED IN SHARES?

Table.4.19 Investors to invest money in our own savings

Less then 15% 50

15-30% 40

30 and above 10

ANALYSIS:

From the above table shows the investors saving more money to investing half of the saving
amount to invest in stock market.

PERCENTAGE OF SAVING MONEY

60

50

40

30

20

10

0
Less then 15% 15-30% 30% and above

Fig.4.19 Investors to invest money in share market

INTERPRATATION:

The above study shows that the 100 respondents in 50 of people investing less then 15% and
40% of people investing in more then our savings in stock market.

55 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

4.2 :HYPOTHESIS TESTING:

RISK RESPONDENTS

No risk 10

Nominal risk 37

Moderate risk 32

High risk 15

The computation of sample chi-square value is given in the table:

Table.4.1.Sample of chi-square values

Risk Observed Expected O-E (O-E)^2 (O-E)^2/E

frequencies(O) frequencies(E)
No risk 10 25 -15 225 9

Nominal 37 25 12 114 5.76

risk
Moderate 32 25 7 49 1.96
risk
High risk 15 25 10 100 0.4

TOTAL 17.12

Out of 100 samples: H0: ¼ =25

(𝑂−𝐸)^2
The value of sample=𝑥 2 = 𝛴 =17.12
𝐸

Degree of freedom=4-1=3 Calculated value is = 17.12

Critical table value= 𝑥 2 = 11.345 = 1%

⸫Table value is less then the calculated value so we rejected⸫

❖ H0: Null Hypothesis is (Reject)

❖ H1:Alternative Hypothesis is (Accepted)
Alternative Hypothesis :-There is a significant difference between the investment pattern and
its effect on risk profile.

56 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

CHAPTER-5
FINDINGS, CONCLUSION AND
SUGGESTIONS

57 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

5.1:FINDINGS:
1. From the data analysis given above , the investors gender level of the investors and given
the out of 100 respondents 80% of investors are male and remaining 20% are female and
concluding that male are more to investing in stock market.

2. From the above study given the data analysis the age level of investors this is very
important role in the investment activities in this data showing 24-34 and 34-44 age level of
investors higher in share market.

3. In this study 52% of employees investing in share market because they are having
sufficient money in there hand.

4. This study shows that the education level of investors in this level out of 100 respondents
43% of post graduate more investing money in stock market.

5. In this study annual income of investors 3 lakh and above income level of investors 40% of
people are investing in stock market.

6. In any family the earning members is more then 2 dependent family member in this 43% of
dependent family invested money in share market. And more then 10-15 lakh of family
income level is 22% investor including in stock market to investing the money.

7. From the above study like collected and analysis the given data investment option of the
investors in stock market. And more then 53% of investor investing the money in equity
shares because equity is the best source of investing in the stock market and getting good
return.

8. In this study out of 100 respondents 42% of investors go/ take the good return in the stock
market. When the investor getting good returns and they are investing more percentage of
there savings.

9. The 44% of the investors to take moderate risk because order to earn maximum return in
the stock market.

10. From the above study the 48% of investor to they hold the securities because there is no
need of pay the tax it is tax free to hold the securities in one year and above in stock market.

58 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

11. The investors to accept the losses in expectation of higher long term returns because this
survey the data 50% of investors to accept the strongly agree in stock market.

12.In this survey most of the 70% of the investors to investing the money in long term and
day trader investor in including stock market.

13.In stock market equal level of investors to operated in stock market 50% of primary
market and 50% in secondary market.

5.2:CONCLUSION:
As this examination presuming that venture is the careful and confused procedure on the offer
market and the financial specialist has the distinctive demeanour with their hazard profile
towards speculation conduct. In this examination most of financial specialists have the
preservationist hazard profile and just not many have the forceful hazard profile.

Most of financial specialists have a drawn out skyline and the greater part of them couldn't
help contradicting facing restricted challenges in the feeling of more significant yields lastly
this review demonstrates that the most extreme number of speculators has a cautious hazard
profile and not many of them go to the idealistic hazard profile.

5.3:SUGGESTIONS:
Based on the above survey suggested the suggestions:

1. The investment decision should be focused on the study of risk and returns.
2. Investors should therefore evaluate the market behaviour as a whole and the
movement behaviour of the share in which investors are likely to invest.
3. Many investors have said there investment is very cautious.
4. Finally this study suggests that they should provide them with rapid notifications on
market fluctuations and their money by projecting their customers.

59 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

BIBLOGRAPHY

TEXT BOOK:

Financial Derivatives And Risk Management By, LC GUPTA.

Web sites:

• www.moneycontrol.com
• www.markecalls.com
• www.nse.in
• www.bse.in
• www.sharekhan.in
• www.commodityonline.com

60 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

ANNEXURE

QUESTIONNAIRE ON
“INVESTMENT PATTERN ON THE BASIS OF INVESTORS
RISK PROFILE”
I am Ms CHANDRAKALA.M Studying in MBA 4rd Semester at SEA COLLEGE OF
ENGINEERING & TECHNOLOGY, Affiliated to Visvesvaraya Technological University,
Bangalore.

As part of MBA Curriculum, I am doing the project on “INVESTMENT PATTERN ON

THE BASIS OF INVESTORS RISK PROFILE” and I am seeking your kind assistance in
completing the questionnaire attached which would take a few minutes of your valuable time.

(Your answers are regarded strictly as confidential)

SECTION – A: PERSONAL INFORMATION QUESTIONS.

1. Name of the respondent:________________________________________ (optional)

2. Gender: Male Female

3. Age
a) 20-24 b) 25-34 c) 35-44 d) 45 and above
4. Education
a) Below PUC b) Under Graduate c) Post Graduate and Above
5. Occupation
a) Business b) Employee c) Home maker d) Professionals
Other (specify) ________
6. Annual Income
a) Up to 1 Lakh b) 1- 1.99 Lakh c) 2-2.99 Lakh d) 3 Lakh and above
7. No. of dependents in Family
a) 1 b) 2 c) 3 d) 5 and Above e) No Dependents
8. Family Income
a) <5 Lakh b) 5-10 Lakh c) 10-15 Lakh d) 15 Lakh and Above

61 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

SECTION – B: RISK PROFILE QUESTIONS.

9. Which investment option you prefer to invest? (You can tick multiple options)
a) Equity b) Commodity c) Currency d) Derivatives
(Specify)_________

10. Why do you prefer the above investment option?

a) Good returns b) Assured returns c) High returns d) No risk involved (you
can tick multiple options)

11. How much of the overall income you 're bringing in?
a) Below 5% b) 6 % - 10 % c) 11 % - 15% d) 16-20 %

12. What kind of risk do you assume when you make an investment?
a) No risk b) Marginal Risk c) Moderate risk d) Higher Risk

13. How long are the securities that you hold?

a) For a day b) Until week c) For a period d) For year and higher

14. Are you prepared for limited losses with higher long-term returns expected?
a) Strongly Disagree b) Fully agree c) Either or Disagree Agree d) Strongly Agree

15. If your investments were to fall by 15 per cent over a period of one year, what are you
going to do?
a) Withdraw all money from share market
b) Take out some money and move to safer investment
c) Wait until the market recovers and then consider
d) Stick to investment
e) Invest more money in the same investment

62 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY

INVESTMENT PATTERN ON THE BASIS OF INVESTORS RISK PROFILE WITH
SHAREKHAN LIMITED

16. NO of Earnings members ?

a) 1 b)2 c) 3 &above
17. Type of investor ?
a) Hereditary investors b) New generation investors

18. Category of investors ?

a) Long term investor b) Day trader c) both

19. Type of Operated ?

a) Primary market b) Secondary market c)
both

20. State the percentage of your savings invested in shares ?

a) Less then 15% b) 15% -30% c) 30% and above

Date: ____________ Signature: _________

Thank You!!!

63 | P a g e S.E.A COLLEGE OF ENGINEERING AND TECHNOLOGY