awareness regarding equity products amongst corporate employees

8/3/2019 Awareness Regarding Equity Products Amongst Corporate Employees

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AWARENESSREGARDINGEQUITY

PRODUCTSAMONGSTCORPORATE

EMPLOYEES

Presented by

Ashvin Koladara (107680592065)


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RESEARCH METHODOLOGY

Objectives of the study

To find out the awareness level for equity products amongstcorporate employees in satellite.

To study the preference of the corporate employees for the

investment tools.

To know how many people are investing in equity market.

To know the purpose of investing in equity products of

corporate employees.

Research Design: descriptive design.

Sampling Design Population: corporate employees

Sampling Method: convenience sampling

Sample size: 300

Sample unit: corporate employee

Sources of data: primary and secondary


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RESEARCH METHODOLOGY

Literature Review

Share Market Knowledge, The NSE Of India, And BSE OfIndia (Nirmal kumar Soni, (2009), Author of stock market

analyst)

The Investment Pattern in Ahmedabad and Gandhinagar

(Roney Josheph and Lalit barasiya, (2009) from NRIBM)

Statistical Technique

Chi-Square test

Limitations of the study

The investors may be bias in giving the require data.

The scope and analysis of the project is limited to 300

corporate employees in satellite area, Ahmadabad.

Time Constraint


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COMPANY PROFILE

(MOSL) was founded in 1987 as a small sub-broking unit

a well diversified financial services firm offering a range of financialproducts and services

Companies Products and Services:

equity, derivatives, insurance, commodities, MFs, depository services, PMS

SWOTAnalysis:

Strengths

Large and diverse distribution network

Strong research and sales teams

Experienced top management

Weaknesses

MOFSL operate on leased premises.

MOFSL have entered into a number of related party transactions.


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CONT

Opportunities

Good Customer Base Rising consumer incomes will translate into disproportionately

higher allocation of these funds into equities

Can make use of sustained growth in retail segment of financialProduct.

Threats Existing Competitors and new local players can affect company.

Market has been uncertain for the last 3 and more months.

Political instability

Downturns or disruptions in the securities markets could reducetransaction volumes, and could cause a decline in the business

and impact profitability.


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INTRODUCTON OF EQUITY

Equity Two wordsEquality & Ownership

Equity means equal ownership of the company Equity Investment

Compare to most other forms of investments, investing in equity sharesor equity based mutual funds offers the highest rate of return, if investedover a longer duration.

Equity products: two routes through which one can participate in equity

Direct equity: Equity /Share,IPOs One of the best investment avenues available but it is one of the riskiest.

best example of a "High Risk High Return" kind of investment. Thiskind of Investment Avenue is not meant for everybody because of theamount of expertise, skillets, time and energy that it demands.

Indirect equity: MFs

A common pool of money into which investors place their contribution

This money is invested according to the pre-stated objectives of thefund

Ownership of the fund is joint or mutual amongst all the investorsequivalent to the contribution made


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DATA ANALYSIS AND INTERPRETATION

How much are you aware about equity products?

100, 33%

129, 43%

71, 24%

Awareness Level of Equity Products

Fully Aware

Little Aware

Not Aware


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CONT...

Relationship between Gender & Awareness

96, 37%

109, 41%

59, 22%

Male & Awareness

Fully Aware

Little Aware

Not Aware

4, 11%

20, 56%

12, 33%

Female & Awareness

Fully Aware

Little Aware

Not Aware

264


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CONT...

Relationship between Age & Awareness

82, 32%

115, 45%

60, 23%

25 - 35 Age group & Awareness level

Fully Aware

Little Aware

Not Aware

18, 42%

14, 32%

11, 26%

> 35 Age group & Awareness level

Fully Aware

Little Aware

Not Aware


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CONT... Rate the following investment tools according to your

preference?

0

10

20

30

40

50

60

70

Mutual

Funds

Govt.

Securities

& Bonds

Insurance Equity

market &

IPOs

Real Estate Bullions Fixed

deposits

64

3735

31

49

18

66

21% 13% 12% 10% 16% 6% 22%N

o.o

fRespondents

Investment Tools

Most Preferable Investment Tool

Respondents

Percentage


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CONT...

Least Preferable Investment Tool

0

10

20

30

40

50

60

70

80

Mutual

Funds

Govt.

Securities &

Bonds

Insurance Equity

market &

IPOs

Real Estate Bullions Fixed

deposits

3432

39

52

43

80

20

11% 11% 13% 17% 14% 27% 7%

N

o.o

fRespondents

Investment tool

Least Preferable Investment tool

Respondents

Percentage


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CONT...

Do you invest in Equity market?

0

20

40

60

80

100

120

140

160

Yes

No

148152

49%

51%

No.ofRespondents

Invest

Invest in Equity Market

Respondents

Percentage


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CONT...

Relationship between Awareness & Investment

decision

91

56

1

9

7370

0

10

20

30

40

50

60

70

80

90

100

Fully aware Little aware Not aware

No.o

fRespondents

Awareness

Awareness and Investment decision

Yes

No


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CONT...

Relationship between Gender & Investment Decision

137, 52%

127, 48%

Male & Investment decision

Yes

No

11, 31%

25, 69%

Female & Investment decision

Yes

No


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CONT...

Route of Investment in equity

74, 50%

36, 24%

38, 26%

Route of transaction

Direct Equity

Mutual Funds

Both


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CONT...

What is the investable (investing) amount from your

income in Equity market?

0

20

40

60

80

100

10% to 20% 20% to 30% 30% to 50% > 50%

95

30

19464% 20% 13% 3%

N

o.ofRespondents

Percentage of Income

Investable amount from income in equity market

Respondents

Percentage


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CONT...

Time horizon for investment

0

5

10

15

20

25

30

35

4045

50

Less than 6

months

6 months to 1 year 1 yearto 3 year More than 3 years

40

23

49

36

27% 16% 33% 24%N

o.ofRespondents

Time Horizon

Time Horizon for investment

No. of Respondents

Percentage


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CONT...

Relationship between Time horizon & Expected

return

5 56

3

21

10

27

15

5 5

15

109

3

1

8

0

5

10

15

20

25

30

Less than 6 months 6 months to 1year 1 year to 3 year more than 3 years

ExpectedReturn

Time horizon

Time horizon Vs. Expected return

0-10%

11-20%

21-25%

More than 25%


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CONT...

What kind of investment you prefer (your risk

appetite)?

36, 24%

89, 60%

15, 10%

8, 6%

Risk Appetite

High Risk High Return

Medium Risk Medium Return

Low Risk Low Return

Do Not Like Any Risks


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CONT...

Relationship between Gender & Risk Appetite

34, 25%

82, 60%

13, 9%

8, 6%

Male & Risk appetite

High risk high return

Medium risk medium

return

Low risk low return

Do not like any risk


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CONT...

Whom do you depend on financial advice?

11

21

38

26

52

46

16

2426

36

44

27

19

36

22

25

40

29

36

18

22

44

38

24

20

0

10

20

30

40

50

60

P1 P2 P3 P4 P5

N

o.ofRespondents

Source of Financial Advice

Depend on Financial Advice

Advertisement

Financial Advisor Firm/Broker

Friends / Relatives

Magazines / Newspaper

Investment Website


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CONT...

What is your purpose behind investment?

0

10

20

30

40

50

60

70

Wealth

creation

Tax savings others Future

uncertain

events

Future

obligations

More than

one purpose

63

20

1311 10

31

43% 13% 9% 7% 7% 21%No.ofRespondents

Purpose

Purpose behind Investment

No.of Respondents

Percentage


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CONT...

How much returns do you expect from equity

market?

0

10

20

30

40

50

60

70

80

0-10% 11-20% 21-25% More than 25%

19

73

35

21

13% 49% 24% 14%

No.o

frespondents

Percentage of Return

Expected Return from Equity Market

NO. of Respondents

Percentage


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HYPOTHESIS

H0: Return on investment is independent of the % of investment.

H1: Return on investment is dependent on the % of investment.

=0.05

DOF = (4-1) (4-1) =9

2 (tabulated) = 16.92

2 (calculated) = 9.7944

2(tabulated) > 2 (calculated)

Interpretation:

Here, H0 is accepted.

It means that return on investment is independent of the percentage of investment.


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FINDINGS

Majority of the corporate employees (43%) are little aware about the equity products.

37% male are fully aware about the equity products whereas only 11% female comeunder fullyaware category.

49% corporate employees are investing in equity products

Out of 100 fully aware corporate employees, 91 are investing in equity products.There are 71 employees who are not aware and thus they do not invest in equityproducts.

52% male and only 31% female are investing in equity market.

Out of 300 corporate employees, 66 prefer to invest in fixed deposits and 64 prefer toinvest in mutual funds for investment

Half of the employees (50%) prefer direct equity as a route of investment in equity.

64 % are investing 10-20 % of their income in equity market.

50% employees prefer online mode of transaction.

Irrespective of the time horizon, employees expect the return of 11-20% in equitymarket.

60% prefer medium risk medium return in equity market for safety purpose.

25% male are more attractive towards taking high risk-high return whereas only 18%female take high risk.

Out of 148 corporate employees, 46 depend on investment advisor firm / broker and44 depend on friends / relatives for investment advice.

Wealth creation is the prime purpose behind the investment in equity amongst thecorporate employees with 43%.


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CONCLUSION

Over the last few years, the level of awareness is much higher than

the past.

Equity as a concept is well known, but the target audience still

need to gain more awareness especially the female counterpart.

Many people have fear of equity products. They think their money

will not be secure in equity products - Need the awareness and

knowledge of equity products and its related terms. The future of equity market is very bright as it offers the potential

for a larger return than the fixed income investing in a long run. The

equity products are right for the investors with high tolerance for

risk.


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RECOMMENDATIONS

The company should do more canopies to attract more people and to

increase the awareness. The company should do marketing of Exchange Traded Funds

(ETF) to explore opportunities in the untapped segment as it is a

new way to indirectly participating in equity.

The company should also give information about the tax benefits to

invest into equity products for long term horizon.

There is a large scope for the company to tap the salaried persons via

SIP. SIP is an easy tool for salaried person as it provides the facility

of doing the investment in EMI.


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BIBLIOGRAPHY

www.motilaloswal.com

http://EzineArticles.com/?expert=Nirmal_Kumar_Soni

www.aumfinancialadvisors.com/market.html

www.ncfm.com
http://www.motilaloswal.com/http://ezinearticles.com/?expert=Nirmal_Kumar_Sonihttp://www.aumfinancialadvisors.com/market.htmlhttp://www.ncfm.com/http://www.ncfm.com/http://www.aumfinancialadvisors.com/market.htmlhttp://ezinearticles.com/?expert=Nirmal_Kumar_Sonihttp://www.motilaloswal.com/


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