Stock Holding Corporation of India Ltd, Bangalore

8/13/2019 Stock Holding Corporation of India Ltd, Bangalore

1/17

Stock Holding Corporation of

India Ltd, Bangalore


2/17

Introduction to Depository

Securities kept electronic form

Similar to Bank

Depositories- NSDL & CDSL Depository participants

Benefit to investors

SHCIL is the intermediary for NSDL

& CDSL


3/17

Basic Facts about SHCIL

It is incorporated on 28th July, 1986

India’s first & largest DP

142 offices in 80 cities(13 inKarnataka)

Has wide rang of services

Stock broking Services


4/17

Investment

Investor

Investment Avenues

Portfolio Diversification

Sources of study

Fundamental Analysis


5/17

Topic of Study

“ Study of nvestors preferences andtrends” Objectives To understand Investors behavior on investment

To study present trend for Investment

To study portfolio of investor and there basis ofstudy

To study Investors preferences and trends


6/17

Methodology

Collection of Data

Primary Source

Secondary Source

Selection of sample

Population

Sample Frame

Sample Size

Sample Method


7/17

Analysis & Findings


8/17

Relation between Income &

Investment

From above table and chart we can come to

know that the income of investor increases his

investment also increases and % increase of

investment is more than % increase in income.

28500

45000

70000

100000

0

20000

40000

60000

80000

100000

120000

Below 1.5

Lakhs

1.5 to 3

lakhs

3 to 4.5

Lakhs

4.5 lakhs

and Above

Annual income

Investment per

annum (Weightge

Average)


9/17

Type of Investment

The survey reveals that 36 (45%) investors invest for longterm period. And 27(34%) investors invest in both long termand short term securities. And remaining investors 17(21%) for short term period. The survey has shown that most of theinvestors are investing for long term.

17

36

27

0

5

10

15

20

25

30

35

40

Short Term

Investment

Long Term

Investment

Both


10/17

Frequent of investment (gap between

two investments)

• From the above graph we come to know that 31% of investors are

investing monthly. 25% investors are investing quarterly.

• It shows 56% of investors are investing money either monthly or

quarterly. And among these most of them are employed.

13

25

20

11

11

Weekly

Monthly

Quarterly

Half Yearly

Yearly


11/17

Basis of Investment

From this we can come to know most of the investor (67%) basetheir investment on self analysis and remaining 33% of investors

take advice from advisers such as brokers, financial advisors,

friends or relatives or chartered accountants for making their

investment decisions.

54

19

11 11

5

0

10

20

30

40

50

60

Self

Analysis

Financial

Advice

Broker

Advice

F/R

Advice

C A

Advice


12/17

Sources of study for investment

From the graph we can observe that source ofinformation for majority of investors is business dailies.But, business news channels and business magazinesare also important sources of study.

Business

Channel

Business

Dailies

Business

Magazines

Internet

Percentage

2736

2720


13/17

Investment pattern affected by market

movement

From the chart we can come to know that for 53 (66%) investors investment pattern will be affected ifthere are changes in market movement (BSE index,Nifty etc). Market movement is very important factorfor changing in investment pattern

Yes, 53

No, 27

0

10

20

30

40

50

60

Frequency


14/17

Important factors to choice various

investment alternatives

From the chart we can see that for 30(37%) of investors themost important factor considered for investment decision isreturn on investment, second important factor is futuregrowth and then past performance of the company thirdimportant factor considered for investment is the risk involved.

16

30

20

24

10

Risk Involved

Return they give

Past performance

Future Growth

Other factor


15/17

Findings

Investors undertake study of the markets, industry,firms before taking decisions about investment.

Return on investment and credit rating these twoimportant factors for 70% investor who is interested ininvesting in Bonds/Debenture.

Past record of the firm, Dividend record and Futuregrowth, these three important factor for 60% ofinvestor before taking any decision about investment inequity.

Equity is the most important investment avenue amongall investment options. Second important investmentavenue among various alternatives are mutual fund and insurance. Least important investment avenuesare investments in PPF and real estate.


16/17

Suggestion

Since the internet and web based communication is getting popularSHCIL should update web site frequently and provide information up todate

Since investors investment decision is based on study of differentsources of information. SHCIL should start giving advertisement inbusiness dailies and in business magazine.

Most of the investor’s portfolio is diversified so there is huge scope invarious new services. So SHCIL should come with new intermediariesservices.

SHCIL should conduct awareness program aggressively for its StockBrokering services as it is a new service provided by SHCIL awarenessamong investors is very low.

SHCIL should start NSE futures and option index (Derivatives) andcommodity market trading very aggressively because most of the

investors are investing in equity. And these markets are growing veryfast.


17/17

Thank you

Stock Holding Corporation of India Ltd, Bangalore

Documents