copy of project 1
TRANSCRIPT
-
8/8/2019 Copy of Project 1
1/87
CHAPTER-1
1.1-INTRODUCTION
INVESTMENT:
Investment is the use of money to earn income or profit. The term also refers to
the expenditure of funds for capital goods - such as factories farm, equipment, livestock
and machinery. Capital goods are used to produce other goods or services. Many people
invest part of their income for future financial gain. Others make investments to protectthe purchasing power of their savings against rising prices. Investment promotes
economic growth and contributes to a nations wealth.
INVESTMENT ALTERNATIVES
INVESTMENT ALTERNATIVES means the various investment options available to
investors to invest their surplus funds. The investors can invest their funds in thesevarious investment alternatives and get a return on their funds invested by them. There
are various investment alternatives available for the investors.
An investor chooses between the various investment alternatives based on three major
criteria, they are RISK, RETURN and LIQUIDITY. An investor chooses between the
various investment alternative based on these three major criteria.
An investor looks up for the different investment alternatives available and invests in that
alternative suitable for him.
The various investment alternatives available for investors are as follows:
1
-
8/8/2019 Copy of Project 1
2/87
1. SHARES:
In financial markets, a share is a unit of account for various financial instruments
including stocks, mutual funds, limited partnerships, and REIT's. The income
received from shares is called a dividend, and a person owning shares is called a
shareholder.
A share is one of a finite number of equal portions in the capital of a company,
entitling the owner to a proportion of distributed, non-reinvested profits known as
dividends, and to a portion of the value of the company in case of liquidation. Shares
can be voting or non-voting, meaning they either do or do not carry the right to vote
on the board of directors and corporate policy. Whether this right exists often affects
the value of the share. Voting and non-voting shares are also known as Class A and B
shares respectively
Shares are traded in the primary market and the secondary market. The shares ofthe companies are listed in stock exchange for trading.
2. MUTAL FUNDS:
A mutual fund is simply a financial intermediary that allows a group of investors to
pool their money together with a predetermined investment objective. The mutual fund
will have a fund manager who is responsible for investing the pooled money into
specific securities. When you invest in a mutual fund, you are buying shares of the
mutual fund and become a shareholder of the fund.
Mutual funds are ofopen-ended, close-ended, hedge funds, equity funds, bondfunds and exchange funds.
3. INSURANCE:
Insurance, in law and economics, is a form ofrisk management primarily
used to hedge against the riskof a contingent loss. Insurance is defined as the equitable
transfer of the risk of a loss, from one entity to another, in exchange for a premium.
Insurer is the company that sells the insurance. Insurance rate is a factor used to
determine the amount, called the premium, to be charged for a certain amount of
insurance coverage.
Insurance are oflife insurance, health, vehicle and medical insurance.
2
http://en.wikipedia.org/wiki/Lawhttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Risk_managementhttp://en.wikipedia.org/wiki/Hedge_(finance)http://en.wikipedia.org/wiki/Riskhttp://en.wikipedia.org/wiki/Lawhttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Risk_managementhttp://en.wikipedia.org/wiki/Hedge_(finance)http://en.wikipedia.org/wiki/Risk -
8/8/2019 Copy of Project 1
3/87
4. DERIVATIVES:
Derivatives are financial instruments whose value changes in response to the
changes in underlying variables. The main use of derivatives is to reduce riskfor oneparty.
The main types of derivatives are futures, forwards, options, and swaps.
5. BONDS:
In finance, a bond is a debtsecurity, in which the authorized issuer owes theholders a debt and is obliged to repay the principal and interest (the coupon) at a later
date, termed maturity. Other stipulations may also be attached to the bond issue, such asthe obligation for the issuer to provide certain information to the bond holder, orlimitations on the behavior of the issuer.
Bonds are ofgovernment, municipal, corporate and long term bonds.
6. COMMODITIES:
A commodity is anything for which there is supply, but which is demanded
without qualitative differentiation across a foreign market.
Characteristic of commodities is that their prices are determined as a function of
their market as a whole. Well-established physical commodities have actively traded
spot and derivative markets. Generally, these are basic resources and agricultural
products such as iron ore,crude oil,coal, ethanol, sugar, soybeans, aluminum,rice,
wheat, gold and silver.
3
http://en.wikipedia.org/wiki/Financial_instrumenthttp://en.wikipedia.org/wiki/Riskhttp://en.wikipedia.org/wiki/Futures_contracthttp://en.wikipedia.org/wiki/Forward_contracthttp://en.wikipedia.org/wiki/Option_(finance)http://en.wikipedia.org/wiki/Financehttp://en.wikipedia.org/wiki/Debthttp://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Coupon_(bond)http://en.wikipedia.org/wiki/Maturity_(finance)http://en.wikipedia.org/wiki/Supplyhttp://en.wikipedia.org/w/index.php?title=Qualitative_differentiation&action=edit&redlink=1http://en.wikipedia.org/wiki/Agriculturehttp://en.wikipedia.org/wiki/Iron_orehttp://en.wikipedia.org/wiki/Crude_oilhttp://en.wikipedia.org/wiki/Coalhttp://en.wikipedia.org/wiki/Ethanolhttp://en.wikipedia.org/wiki/Sugarhttp://en.wikipedia.org/wiki/Soybeanshttp://en.wikipedia.org/wiki/Aluminiumhttp://en.wikipedia.org/wiki/Ricehttp://en.wikipedia.org/wiki/Wheathttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Silverhttp://en.wikipedia.org/wiki/Financial_instrumenthttp://en.wikipedia.org/wiki/Riskhttp://en.wikipedia.org/wiki/Futures_contracthttp://en.wikipedia.org/wiki/Forward_contracthttp://en.wikipedia.org/wiki/Option_(finance)http://en.wikipedia.org/wiki/Financehttp://en.wikipedia.org/wiki/Debthttp://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Coupon_(bond)http://en.wikipedia.org/wiki/Maturity_(finance)http://en.wikipedia.org/wiki/Supplyhttp://en.wikipedia.org/w/index.php?title=Qualitative_differentiation&action=edit&redlink=1http://en.wikipedia.org/wiki/Agriculturehttp://en.wikipedia.org/wiki/Iron_orehttp://en.wikipedia.org/wiki/Crude_oilhttp://en.wikipedia.org/wiki/Coalhttp://en.wikipedia.org/wiki/Ethanolhttp://en.wikipedia.org/wiki/Sugarhttp://en.wikipedia.org/wiki/Soybeanshttp://en.wikipedia.org/wiki/Aluminiumhttp://en.wikipedia.org/wiki/Ricehttp://en.wikipedia.org/wiki/Wheathttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Silver -
8/8/2019 Copy of Project 1
4/87
7. MONEY MARKET:
The money market is the global financial market for short-term borrowing and
lending. It provides short-term liquid funding for the system. The money market consistsof financial institutions and dealers in money or credit who wish to either borrow or lend.
Participants borrow and lend for short periods of time, typically up to thirteen months.Money market trades in short term financial instruments commonly called "paper". This
contrasts with the capital market for longer-term funding, which is supplied by bonds andequity.
Money market instruments are Treasury bills, commercial paper and bankers'
acceptances
8. REAL ESTATES:
Real estate is a legal term that encompasses land along with anything permanently
affixed to the land, such as buildings, specifically property that is stationary, or fixed in
location. Real estate is often considered synonymous with real property , in contrast withpersonal property . However, in some situations the term "real estate" refers to the land
and fixtures together, as distinguished from "real property," referring to ownership rights
of the land itself.
9. FIXED DEPOSITS:
Fixed deposits are investing in bank. The bank provides interest for these deposits
based on the period of investment and the amount of investment. Fixed deposit is
considered to be a much secured form of investment. The investor gets the return on hisinvestment on the maturity of the time period for which the fixed deposit was accepted.
Fixed deposits are ofSavings account, post office saving scheme and kisan vikaspatra.
10. PROVIDENT FUND:
This includes statutory provident fund, recognized provident fund, unrecognizedprovident fund and public provident fund.
4
http://en.wikipedia.org/wiki/Financial_markethttp://en.wikipedia.org/wiki/Market_liquidityhttp://en.wikipedia.org/wiki/Financial_instrumenthttp://en.wikipedia.org/wiki/Capital_markethttp://en.wikipedia.org/wiki/Treasury_security#Treasury_billhttp://en.wikipedia.org/wiki/Commercial_paperhttp://en.wikipedia.org/wiki/Bankers'_acceptancehttp://en.wikipedia.org/wiki/Bankers'_acceptancehttp://en.wikipedia.org/wiki/Lawhttp://en.wikipedia.org/wiki/Buildinghttp://en.wikipedia.org/wiki/Real_propertyhttp://en.wikipedia.org/wiki/Personal_propertyhttp://en.wikipedia.org/wiki/Fixtureshttp://en.wikipedia.org/wiki/Financial_markethttp://en.wikipedia.org/wiki/Market_liquidityhttp://en.wikipedia.org/wiki/Financial_instrumenthttp://en.wikipedia.org/wiki/Capital_markethttp://en.wikipedia.org/wiki/Treasury_security#Treasury_billhttp://en.wikipedia.org/wiki/Commercial_paperhttp://en.wikipedia.org/wiki/Bankers'_acceptancehttp://en.wikipedia.org/wiki/Bankers'_acceptancehttp://en.wikipedia.org/wiki/Lawhttp://en.wikipedia.org/wiki/Buildinghttp://en.wikipedia.org/wiki/Real_propertyhttp://en.wikipedia.org/wiki/Personal_propertyhttp://en.wikipedia.org/wiki/Fixtures -
8/8/2019 Copy of Project 1
5/87
1.2-SCOPE OF THE STUDY
The scope of the study is to find out the various investment options available to the
investors and to find out the investor preference and their awareness on the investment.
It also studies about the preference of intermediaries to the investment. The study is
also extended to study the various risk and returns of the various investment
alternatives.
1.3-PROBLEM DEFINITION
The overall market of interest on government securities, bank deposits and other fixed
deposit has been decreasing year after steadily due to various factors which affect the
interest of the investors and the rate of interest of the investors. But on the other hand
the investors interest is gradually shifted towards mutual funds, shares and other
company securities. When compare to bank deposits the return from mutual funds is
high. Likewise, when compare to mutual funds the return from equity market is very
high. But of course risk is also high in these securities. Hence it is important to know
the various investment alternatives which are available to the investors and the risk andreturn of the investments and it is also necessary to know the investor preference
towards these alternatives. It is also necessary to know how an investor chooses
between these investments alternatives. Since an intermediary is necessary for proper
management of the investors funds it is also necessary to know the functioning of the
intermediaries.
5
-
8/8/2019 Copy of Project 1
6/87
1.4-0BJECTIVES
PRIMARY OBJECTIVES:
To study the various investment alternative available and the investor preference
towards the investment alternatives.
SECONDARY OBJECTIVES:
To study the risk and return of the investment alternatives.
To study the investor awareness of the various investment alternatives.
To analyze how an investor choose between the various investments.
To analyze the preference of intermediaries in investments.
6
-
8/8/2019 Copy of Project 1
7/87
1.5-RESEARCH METHODOLOGY
RESEARCH DESIGN:
This project analyses the various investment alternatives available and the investors
preference on the various investment alternatives available. The project also studies the
investors preference towards the intermediaries. For this purpose descriptive research
design is use in order to cover the field of the study.
DATA SOURCES:
1) PRIMARY DATA:
Primary data required for the research study was collected by conducting research
study where in various investors were given questionnaires and the require data
was collected.
2) SECONDARY DATA:
Secondary data were collected from the various periodicals, journals,
records, books, web pages and the like.
7
-
8/8/2019 Copy of Project 1
8/87
SAMPLING DESIGHS:
Samples of 150 investors were selected on the basis of non-probability sampling
technique. The information relating to investor preference towards investment and
the preference of intermediaries were collected with the help of preparing
questionnaire.
TOOLS USED:
For the present study percentage analysis, chi-square test and weighted average method
is used in order to analyze the given data.
TIME PERIOD COVERED:
The primary data was collected with the help of questionnaire for the time
period from January to march 2008
8
-
8/8/2019 Copy of Project 1
9/87
1.5-LIMITATIONS OF THE STUDY
The study had to be completed within a short period of time.
The sample size of 150 is a small when compare to large number of
investors.
The study is confined with the investors in India infoline.
Time was the main constrain in data collection.
Very little co-operation was received from some of the respondents.
Some of the questions were not answered as per the requirement in spite
of detailed and accurate instructions.
9
-
8/8/2019 Copy of Project 1
10/87
1.6-CHAPTERITATION
The project was carried out to study the various investment alternatives
available and the investor preference towards these investment alternatives.
Chapter 1
The first chapter deals with the introduction about the various investment
alternatives and its related terms, scope, problem definition, objectives, research
methodology, limitations of the study, review of literature, company profile and the
industry profile.
Chapter 2
The second chapter includes Data Analysis and Interpretations.
Chapter 3
The third chapter contains Findings, Suggestions and conclusions.
10
-
8/8/2019 Copy of Project 1
11/87
1.2-LITERATURE REVIEW
1.2.1- COMPANY PROFILE
KEY MILESTONES:
Incorporated on October 18, 1995 as probity research & services.
Launched internet portal www.indiainfoline.com in may 1999.
Commenced distribution of personal financial products like mutual funds
and RBI bonds in April 2000.
Launched online trading in shares and securities branded as
www.5paisa.com in july2000.
Started life insurance agency business in December 2000 as a corporate
agent of ICICI prudential life insurance.
Became a depository participant of NSDL in September 2001.
Launched stock messaging services in may2003.
Acquired commodities broking license in march2004.
Launched portfolio management services in August 2004.
Listed in NSE and BSE on May 17, 2005.
Acquired NBFC license in May 2005.
Acquired 100% equity of March Mont capital advisors pvt ltd in December
2005 through which we have ventured into merchant banking.
Bennett Coleman & co ltd invested Rs.20 crores in India infoline by way of
preferential allotment in December 2005.
Became a depository participant of CDSL in June 2006.
IRDA license of insurance broking in April 2007.
11
-
8/8/2019 Copy of Project 1
12/87
MANAGEMENT TEAM:
Mr. Nirmal Jain
Nirmal Jain, MBA (IIM, Ahmedabad) and a Chartered and Cost Accountant, founded
Indias leading financial services company India Infoline Ltd. in 1995, providing globally
acclaimed financial services in equities and commodities broking, life insurance and
mutual funds distribution, among others. Mr. Jain began his career in 1989 with
Hindustan Levers commodity export business, contributing tremendously to its growth.
He was also associated with Inquire-Indian Equity Research, which he co-founded in
1994 to set new standards in equity research in India.
Mr. R Venkataraman
R Venkataraman, co-promoter and Executive Director of India Infoline Ltd., is a B. Tech
(Electronics and Electrical Communications Engineering, IIT Kharagpur) and an MBA
(IIM Bangalore). He joined the India Infoline board in July 1999. He previously held
senior managerial positions in ICICI Limited, including ICICI Securities Limited, their
investment banking joint venture with J P Morgan of USA and with BZW and Tabb
Capital Corporation Limited. He was also Assistant Vice President with G E Capital
Services India Limited in their private equity division, possessing a varied experience of
more than 16 years in the financial services sector.
The Board of Directors:
Apart from Nirmal Jain and R Venkataraman, the Board of Directors of India
Infoline comprises:
Mr. Sat Pal Khattar (Non Executive Director)
Mr. Sat Pal Khattar, - Board member since April 2001 - Presidential Council of Minority
Rights member, Chairman of the Board of Trustee of Singapore Business Federation, is
also a life trustee of SINDA, a nonprofit body, helping the under-privileged Indians inSingapore. He joined the India Infoline board in April 2001. Mr. Khattar is a Director of
public and private companies in Singapore, India and Hong Kong; Chairman of
Guocoland Limited listed in Singapore and its parent Guoco Group Ltd listed in Hong
Kong, a leading property company.
12
-
8/8/2019 Copy of Project 1
13/87
Mr. Nilesh Vikamsey (Independent Director)
Mr. Vikamsey, Board member since February 2005 - a practicing Chartered Accountant
and partner (Khimji Kunverji & Co., Chartered Accountants), a member firm of HLB
International, headed the audit department till 1990 and thereafter also handles financial
services, consultancy, investigations, mergers and acquisitions, valuations etc; an ICAI
study group member for Proposed Accounting Standard 30 on Financial Instruments
Recognition and Management, Finance Committee of The Chamber of Tax
Consultants (CTC), Law Review, Reforms and Rationalization Committee and
Infotainment and Media Committee of Indian Merchants Chamber (IMC) and Insurance
Committee and Legal Affairs Committee of Bombay Chamber of Commerce and
Industry (BCCI).
Mr. Kranti Sinha (Independent Director)
Mr. Kranti Sinha Board member since January 2005 completed his masters fromthe Agra University and started his career as a Class I officer with Life InsuranceCorporation of India. He served as the Director and Chief Executive of LIC Housing
Finance Limited from August 1998 to December 2002 and concurrently as the Managing
Director of LICHFL Care Homes (a wholly owned subsidiary of LIC Housing FinanceLimited). He retired from the permanent cadre of the Executive Director of LIC; served
as the Deputy President of the Governing Council of Insurance Institute of India and as a
member of the Governing Council of National Insurance Academy, Pune apart from
various other such bodies.
VISION:
Our vision is to become the most respected financial service company in India.
13
-
8/8/2019 Copy of Project 1
14/87
CULTURE AND CORE VALUES:
OWNER MINDSET:
Owner mindset is one of the key principles that drive life at India infoline. Every
member of team India infoline behaves thinks and acts as owners not as employees.
ENERGY:
The single most important attribute we look for when we hire people is energy.
Nobody can drive a business of his own or feel like an owner unless he is gifted with
unbounded energy.
EXECUTION:
It is the difference between dreaming and making things happen. At India
infoline, all activities are assessed on the basis of 0 and where 0 signifies work not done
and 1 signifies work completed fully and on time. Excuses/ reasons for non completion of
tasks are not acceptable.
EFFORT:
Those who work for the sake of working and endure the time they spend at work instead
of enjoying it, eventually get de-motivated and leave their jobs for something that does
interest them.
From the organizations perspective, its not the number of hours you spend at work that
matter, but the quality of work that you put into those hours.
14
-
8/8/2019 Copy of Project 1
15/87
ETHICS:
Ethics pertain to the character of a person. Ethics is something on which there can
never be any compromise in India infoline. We have elaborated on our vision to become
the most respected company in the financial services space in India and no one can
respect an unethical organization.
EXCELLENCE:
Excellence is all about the quality of work. We strive for delivery that is 100%
error free and yet at lightning speed. Excellence deals with the quality of work. We have
seen that there are people who get things done right in the very first time , thereby
making the first time right.
APPLICATION OF MIND:
Application of mind is the magic formula to solve all problems. You should
always apply your mind on how your efforts and goals are aligned to that of the company
and how they contribute to the final business goal. We have a very open culture when in
doubt always ask questions to seek clarity. Remember, to succeed at India infoline
always apply your mind like an owner and come up with out-of-box solutions.
OM AND AOM WITH SYSTEM AND PROCESS:
Understand that being owners does not mean that we do not have to follow any
rules. In fact given our path of growth, system and processes assume even greater
importance since they are important for success and more so for growth. But we do have
the option to modify the rules if needed.
Our systems and processes are designed keeping in mind the need for faster decision-
making with least turnaround time.
15
-
8/8/2019 Copy of Project 1
16/87
1.2.2- INDUSTRY PROFILE
1. STOCK EXCHANGE: The stock exchange contribute to the economy development through providing
listing of stocks and their trading listed stocks cover about 90 percent of the joint stock
sectors in which the public companies are at work in India. The functions of the stock
markets consist in mobilizing savings of public and channel them either directly into new
issues of capital or indirectly through acquisition of existing capital stocks thereby
accelerating the economic development of the country.
The recognised stock exchanges have played an important role by participating in
preliminary distribution of new securities. In respect of new issues offer through a
prospectus or through for sale of existing securities the members of the recognized stock
exchange have been the principal agents for canvassing subscriptions from investors
spread all over the country.
The recognized stock exchanges have served as the principal market for purchase
of securities after they are issued as they pass through many successive hands from the
original subscriber to the never ending stream of buyers. The recognized stock exchanges
have, thus performed the vital function of acting as an organized capital market for
stocks, shares and government securities. The market mechanism is being automated and
improved in response to the growing demands. The mobilization of the savings of small
man for investment in joint stock enterprise and broader spread of share ownership are
factors, which in the course of time are likely to except a significant influence on the
stock market in India. The stock exchanges provide an orderly market and price of
securities and facilitate investment in India.
16
-
8/8/2019 Copy of Project 1
17/87
HISTORY OF STOCK EXCHANGE:
The only stock exchanges operating in the 19 th century were those of Mumbai set
up in 1875 and Ahmedabad set up in 1894. These were organized as voluntary non profit making associations of brokers to regulate and protect their interests. Before the
control on securities trading became a central subject under the constitution in 1950, it
was a state subject and the Mumbai securities contracts act of 1925 used to regulatetrading in securities. Under this act, the Mumbai stock exchange was recognised in 1927
and Ahmedabad in 1937. Soon after it became a central subject, the securities contracts
act became law in 1956.
At present there are 21 stock exchanges recognised under the securities contracts
act 1956. They are located at Mumbai, Calcutta, Chennai, Delhi, Ahmedabad,
Hyderabad, Indore, Bhuwaneshwar, Mangalore, Patna, Bangalore, Rajkot, Guwahati,Jaipur, Kanpur, Ludhiana, Baroda, Cochin and Pune.
METHOD OF TRADING:
In order to purchase or sell of the securities or a stock exchange, the following
procedure has to be followed.
A. Selection of Broker
A non member is not allowed to transact business on the floor of stock exchange.He may transact only through a member of stock exchange. Therefore, the first step in
trading procedure on a stock exchange is to choose broker through whom the transaction
will be made.
B. Placing the Order
After selection of broker, the client will place an order to him for the purchase orsale of a particular security. The order may be placed in any form.
C. Making the Contact
After receiving the order, the broker will then contact other broker or member or
the stock exchange.
D. Preparing the Contract Note
A contract note will be prepared after the order of the days business. The note
can be prepared by the broker himself or his clerk. The contract note mainly includes
number and price of securities purchase or sold, names of the parties, brokerage charged
and total amount payable by the or to the client. The contract note is signed by the brokerand copy of the note also sent to the client.
17
-
8/8/2019 Copy of Project 1
18/87
E. Settlement
The last step of trading procedure is settlement. Its mode depends upon the natureof the contract. The contracts modes at a stock exchange are of two types they are:
F. Ready Delivery Contracts
It requires the delivery of securities by the seller and actual payment of the value
of security by the buyers in cash. Generally a ready delivery contractors settled on thesame day of whether the time fixed by the stock exchange authorities. In case of cleared
securities settlement are made through clearing house and contracts in non clearing
house and contracts non cleared securities are settled through hand delivery by the
brokers.
G. Forward Delivery Contract
Such contracts are made without the intention of taking or giving delivery of the
securities. The intention of the trader who entered into forward delivery contract is in
making profits by taking advantage of price movement in future. Forward deliverytransactions are settled on the day fixed by the stock exchange authorities.
BENEFITS TO INVESTORS:
Stock exchange provides liquidity of investment through ready marketability of
securities
Long term investments in shares will provide significant capital gains throughincrease in share price.
Companies pay much of their post-tax profits to their shareholders in the form ofdividends.
Compared to other investments like property, shares are very portable. They can
be bought and sold quickly.
Unlike selling a property, you can sell part of your share parcels.
When compared to other forms of investment the brokerage charged for investingin shares is very low.
In shares we have an option of investing in diversified scripts to minimize risk.
The returns provided by shares are very high when compared to other forms of
investment.
Shares held for more than 12 months qualify for a 50% discount on any capital
gains tax payable
18
-
8/8/2019 Copy of Project 1
19/87
2. MUTUAL FUNDS:
The mutual fund industry in India started in 1963 with the formation of Unit Trust
of India. The history of mutual funds in India can be broadly divided into four distinct
phases:-
First phase-1964-87
An Act of Parliament established Unit Trust of India (UTI) on 1963. It was set up by
the Reserve Bank of India and functioned under the Regulatory and administrativecontrol of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the
industrial Development Bank of India (IDBI) took over the regulatory and administrative
control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At theend of 1988 UTI had Rs.6, 700crores of assets under management.
Second phase-187-1993 (Entry of Public Sector Funds)
1987 marked the entry of non-UTI, public sector mutual funds set up by public sector
banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation
of India (GIC). SBI Mutual Fund was the first non-UTI Mutual Fund established in June
1987 followed by could bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank ofBaroda Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while GIC
had set up its mutual fund in December 1990..
Third Phase-1993-2003(Entry of Private Sector Funds)
With the entry of private sector funds in 1993, a new era started in the Indian mutual
fund industry, giving the India investors a wider choice of fund families. Also, 1993 wasthe year in which the first Mutual Fund was to be registered and governed. The erstwhile
Kothari Pioneer (now merged with Franklin Templeton) was the first private sector
mutual fund registered in July 1993.
The 1993 SEBI (mutual Fund) Regulation were substituted by a more comprehensive
and revised Mutual Fund Regulations in 1996. The industry now functions under the
SEBI (Mutual Fund) Regulation 1996.
19
-
8/8/2019 Copy of Project 1
20/87
Fourth Phase-Since February 2003
In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was
bifurcated into two separate entities. One is the Specified
Undertaking of the Unit Trust of India with assets under management of Rs.29835croresas at the end of January 2003, representing broadly, the assets of US 64 scheme, assured
return and certain other schemes. The Specified Undertaking of Unit Trust of India,functioning under an administrator and under the rules framed by Government of India
and does not come under the purview of the Mutual Fund Regulations.
Mutual Fund Operation Flow Chart:
TYPES OF MUTUAL FUNDS:
Open-end fund:
An open-end(ed) fund is a collective investment which can issue and redeem shares at
any time. An investor can purchase shares in such funds directly from the mutual fund
company, or through a brokerage house.
Exchange-traded funds:
An Exchange-Traded Fund (or ETF) is an investment vehicle traded on primary
exchanges, much like major stocks or bonds. An ETF represents a collection or 'basket' of
assets such as stocks, bonds, or futures.
20
-
8/8/2019 Copy of Project 1
21/87
Equity funds:
Equity funds, which consist mainly of stock investments, are the most common type of
mutual fund. Equity funds hold 50 percent of all amounts invested in mutual funds in the
United States.
Bond funds:
A bond fund is a collective investment scheme that invests in bonds and other debt
securities. Bond funds yield monthly dividends that include interest payments on the
fund's underlying securities plus any capital appreciation in the prices of the portfolio's
bonds.
Money market funds:
Money market funds have relatively low risks compared to other mutual funds and pay
dividends that generally reflect short-term interest rates. Money market funds typically
invest in government securities, certificates of deposits, commercial paper of companies,
and other highly liquid and low-risk securities.
Fund of funds:
A "fund of funds" (FoF) is an investment fund that uses an investment strategy of holding
a portfolio of other investment funds rather than investing directly in shares, bonds or
other securities. This type of investing is often referred to as multi-manager investment.
Hedge fund:
A hedge fund is a private investment fund that charges a performance fee and is typically
open to only a limited range of qualified investors. Hedge funds are most often set up as
private investment partnerships that are open to a limited number of investors and require
a very large initial minimum investment.
21
-
8/8/2019 Copy of Project 1
22/87
MAJOR MUTUAL FUND COMPANIES IN INDIA:
ABN AMRO Mutual Fund
BIRLA SUN LIFE Mutual Fund
BANK OF BARODA Mutual Fund
HDFC Mutual Fund
HSBC Mutual Fund
ING Vysya Mutual Fund
Prudential ICICI Mutual Fund
Sahara Mutual Fund
State Bank of India Mutual Fund
Tata Mutual Fund
Kotak Mahindra Mutual Fund
Unit Trust of India Mutual Fund
Reliance Mutual Fund
Standard Chartered Mutual Fund
Franklin Templeton India Mutual Fund
Morgan Stanley Mutual Fund India
Canbank Mutual Fund
Chola Mutual Fund
LIC Mutual Fund
22
-
8/8/2019 Copy of Project 1
23/87
BENEFITS TO INVESTORS:
Mutual Funds invest their corpus in diversified portfolios which reduces the riskcontained in the investment.
These mutual funds perform an extensive research of the company before making
an investment decision giving you the benefit of expert advice.
These funds are managed by professionals who have the required expertise inbuying and selling stocks.
As purchases and sales are done in bigger quantities, the funds also get the
advantages of lesser brokerage and other reduced transaction costs.
In India these funds become even more attractive because of the tax advantages,
like indexation benefits, long term capital gains tax, tax free dividends and much
more.
Possibility of investing in small amounts as and when the investor has funds to
invest.
Most mutual funds have relatively low investment minimums, making them
accessible even to small investors.
Mutual funds provide greater amount of liquidity to its investors.
23
-
8/8/2019 Copy of Project 1
24/87
3. INSURANCE:
Insurance, in law and economics, is a form ofrisk management primarily
used to hedge against the riskof a contingent loss. Insurance is defined as the equitable
transfer of the risk of a loss, from one entity to another, in exchange for a premium.
Insurer is the company that sells the insurance. Insurance rate is a factor used to
determine the amount, called the premium, to be charged for a certain amount of
insurance coverage.
HISTORY:
The business of life insurance in India in its existing form started in India in the
year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta.
Some of the important milestones in the life insurance business in
India are:
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate
the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the
objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies taken over by the central
government and nationalised. LIC formed by an Act of Parliament, viz. LIC Act,1956,
with a capital contribution of Rs. 5 crores from the Government of India.
1972: The General Insurance Business (Nationalisation) Act, 1972 was enacted to
nationalize the 100 odd general insurance companies and subsequently merging them intofour companies. All the companies were amalgamated into National Insurance, New
India Assurance, Oriental Insurance, and United India Insurance which were
headquartered in each of the four metropolitan cities.
1999: Till 1999, there were not any private insurance companies in Indian insurancesector. The Govt. of India, then introduced the Insurance Regulatory and Development
Authority Act in 1999, thereby de-regulating the insurance sector and allowing private
companies into the insurance. Further, foreign investment was also allowed and capped at26% holding in the Indian insurance companies
24
http://en.wikipedia.org/wiki/Lawhttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Risk_managementhttp://en.wikipedia.org/wiki/Hedge_(finance)http://en.wikipedia.org/wiki/Riskhttp://en.wikipedia.org/wiki/Lawhttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Risk_managementhttp://en.wikipedia.org/wiki/Hedge_(finance)http://en.wikipedia.org/wiki/Risk -
8/8/2019 Copy of Project 1
25/87
INSURANCE COMPANIES IN INDIA
Aviva
Bajaj Allianz
Birla Sun Life
HDFC Standard Life
ICICI Pru
ING Vysya
Life Insurance Corporation
Max New York Life
Metlife India
Om Kotak Mahindra
Reliance Life Insurance
SBI Life Insurance
Tata AIG
TYPES OF INSURANCE:
Health
Disability
Casualty
Life insurance
Property
Liability
Credit
Insurance financing vehicles
25
-
8/8/2019 Copy of Project 1
26/87
RISKS INVOLVED:
The insurance company may not pay the premium amount in right time.
The agents may provide false information about the policies.
In the case of accidents in railway tracks the insurer is not eligible for
compensations.
Private insurance companies may get closed due to continuous losses.
The liquidity provided by insurance is very low.
The investors cannot withdraw his funds for a fixed amount of period.
BENEFITS TO INVESTORS:
Insurance will give cover for future unforeseen happenings.
Insurance companies are now engaging in investing in securities. This will
provide better returns for investor funds.
Pension schemes in insurance will help in old age.
Medical insurance will provide cover against hazardous diseases.
It minimizes the risk of life.
The investor can ensure continuous return on his investments.
The brokerage charged by agents is very low when compared to other investment
alternatives.
26
-
8/8/2019 Copy of Project 1
27/87
4. DERIVATIVES:
Derivatives are financial instruments whose value changes in response to the changes in
underlying variables. The main types of derivatives are futures, forwards, options, andswaps.
The main use of derivatives is to reduce riskfor one party. The diverse range of potential
underlying assets and pay-off alternatives leads to a huge range of derivatives contracts
available to be traded in the market. Derivatives can be based on different types of assetssuch as commodities, equities (stocks),bonds, interest rates, exchange rates, or indexes
(such as a stock market index, consumer price index (CPI) see inflation derivatives
or even an index of weather conditions, or other derivatives). Their performance candetermine both the amount and the timing of the pay-offs.
HISTORY:
The first 'futures' contracts can be traced to the Yodoya rice market in Osaka, Japan
around 1650. These were evidently standardised contracts, which made them much like
today's futures.
The Chicago Board of Trade (CBOT), the largest derivative exchange in the world, wasestablished in 1848 where forward contracts on various commodities were standardised
around 1865. From then on, futures contracts have remained more or less in the same
form, as we know them today.
Derivatives have had a long presence in India. The commodity derivative market hasbeen functioning in India since the nineteenth century with organized trading in cotton
through the establishment of Cotton Trade Association in 1875. Since then contracts on
various other commodities have been introduced as well.
Exchange traded financial derivatives were introduced in India in June 2000 at the twomajor stock exchanges, NSE and BSE. There are various contracts currently traded on
these exchanges.
National Commodity & Derivatives Exchange Limited (NCDEX) started its operations in
December 2003, to provide a platform for commodities trading.
The derivatives market in India has grown exponentially, especially at NSE. Stock Futures are the
most highly traded contracts on NSE accounting for around 55% of the total turnover of
derivatives at NSE, as on April 13, 2005.
27
http://en.wikipedia.org/wiki/Financial_instrumenthttp://en.wikipedia.org/wiki/Futures_contracthttp://en.wikipedia.org/wiki/Forward_contracthttp://en.wikipedia.org/wiki/Option_(finance)http://en.wikipedia.org/wiki/Swap_(finance)http://en.wikipedia.org/wiki/Riskhttp://en.wikipedia.org/wiki/Contracthttp://en.wikipedia.org/wiki/Equitieshttp://en.wikipedia.org/wiki/Stockshttp://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Interest_ratehttp://en.wikipedia.org/wiki/Exchange_ratehttp://en.wikipedia.org/wiki/Stock_market_indexhttp://en.wikipedia.org/wiki/Financial_instrumenthttp://en.wikipedia.org/wiki/Futures_contracthttp://en.wikipedia.org/wiki/Forward_contracthttp://en.wikipedia.org/wiki/Option_(finance)http://en.wikipedia.org/wiki/Swap_(finance)http://en.wikipedia.org/wiki/Riskhttp://en.wikipedia.org/wiki/Contracthttp://en.wikipedia.org/wiki/Equitieshttp://en.wikipedia.org/wiki/Stockshttp://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Interest_ratehttp://en.wikipedia.org/wiki/Exchange_ratehttp://en.wikipedia.org/wiki/Stock_market_index -
8/8/2019 Copy of Project 1
28/87
TYPES OF DERIVATIVES:
There are four major types of derivatives. They are as follows
FUTURES:
A futures contract is a standardized contract, traded on a futures exchange, to buy
or sell a certain underlying instrument at a certain date in the future, at a specified price.
The future date is called the delivery date or final settlement date. The pre-set price is
called the futures price. The price of the underlying asset on the delivery date is called thesettlement price
FORWARDS:
A forward contract is an agreement between two parties to buy or sell an asset at
a pre-agreed future point in time. Therefore, the trade date and delivery date are
separated. One party agrees to sell, the other to buy, for a forward price agreed in
advance. In a forward transaction, no actual cash changes hands. If the transaction iscollateralized, exchange of margin will take place according to a pre-agreed rule or
schedule.
OPTIONS:
Options are financial instruments that convey the right, but not the obligation, toengage in a future transaction on some underlying security, or in a futures contract. For
example, buying a call option provides the right to buy a specified quantity of a security
at a set strike price at some time on or before expiration, while buying a put optionprovides the right to sell. Upon the option holder's choice to exercise the option, the party
who sold, or wrote, the option must fulfill the terms of the contract.
SWAPS:
A swap is a derivative in which two counterparties agree to exchange one stream
of cash flows against another stream. These streams are called the legs of the swap.
The cash flows are calculated over a notional principal amount, which is usually not
exchanged between counterparties. Consequently, swaps can be used to create unfunded
exposures to an underlying asset, since counterparties can earn the profit or loss frommovements in price without having to post the notional amount in cash or collateral
28
-
8/8/2019 Copy of Project 1
29/87
BENEFITS TO INVESTORS:
One of the key benefits of trading in the futures markets is that it offers the trader
financial leverage.
Another key benefit of futures trading is liquidity. Liquid markets easily match a
buyer with a seller, enabling traders to quickly transact their business at a fair
price
Many futures markets are considered to be transparent because the order flow is
open and fair.
Everyone has an equal opportunity for the trade.
Futures markets give this confidence through a clearing service provider system
that guarantees the integrity of the trades.
One use of derivatives is as a tool to transfer risk by taking the opposite positionin the futures market against the underlying commodity.
Speculators may trade with other speculators as well as with hedgers.
The amount of brokerage charged is very low.
The investor can easily clear his position in the time of losses.
RISKS INVOLVED:
Volatility in the market will result in the losses for the investors.
Since a huge investment is needed to buy a script it not affordable for small and
medium investors.
It is difficult to judge the movement of market indices.
Expert advice is needed for better investment results.
It s necessary to have a continuous check over the market in order to avoid losses.
29
-
8/8/2019 Copy of Project 1
30/87
CHAPTER-2
DATA ANALYSIS AND INTERPRETATION
30
-
8/8/2019 Copy of Project 1
31/87
2.1- PERCENTAGE ANALYSIS
TABLE-2.1.1
Classification of Respondents on the basis of Age
Age(in Years) Number of respondent Percentage
Less than 30 34 22.67
31-40 78 52.00
41-50 23 15.33
Above 50 15 10.00
Total 150 100.00
Source: Primary Data
CHART-2.1.1
0
10
2030
40
50
60
70
80
90
Less
than
30
31-40
41-50
Above50
Number of Respondents
Percentage
INFERENCE:
It is clear from Table 2.1.1 that out of the total 150 respondents, 34 (22.64%) of the
respondents are in the age group of below 30 years and 78 (52%) are in the age group of
31 40 years. 23 (15.33%) of the respondents are in the age group of 41 50 years andthe remaining 15 (10%) are in the age group of above 50 years. Therefore, it is concluded
that the most dominating age group of the respondents are in the age group of 31 40
years.
31
-
8/8/2019 Copy of Project 1
32/87
TABLE- 2.1.2
Classification of Respondents on the basis of Sex
Source: Primary Data
Chart-2.1.2
0
20
40
60
80
100
120
140
160
Male Female Total
Number of Respondents
Percentage
INFERENCE:
It is found from Table 2.1.2 that out of 150 respondents, 105 (70%) are male and 45 (30
%) are female. Hence, it is found that males are more in numbers than the female in thefield of investment.
32
Sex Number of Respondents Percentage
Male 105 70
Female 45 30
Total 150 100
-
8/8/2019 Copy of Project 1
33/87
TABLE- 2.1.3
Classification of Respondents on the basis of Educational Qualification
Source: Primary Data
Chart-2.1.3
0
20
40
6080
100
120
140
160
Upto
scho
ollev
el
Grad
uate
Post
Grad
uate
Prof
essio
nalD
egree
Total
Number of Respondents
Percentage
INFERENCE:
It is seen from Table 2.1.3 that out of 150 respondents 15 (10%) of the respondents have
studied up to school level, 33 (22%) of the respondents have studied graduation and 66
(44%) of them have studied post graduation. The remaining 36 (24%) of the respondent
have studied professional degree. Hence, it is observed that the respondents belonging topost graduates are more than other categories.
TABLE-2.1.4
33
Educational Qualification Number of Respondents Percentage
Up to school level 15 10
Graduate 33 22
Post Graduate 66 44
Professional Degree 36 24
Total 150 100
-
8/8/2019 Copy of Project 1
34/87
Classification of Respondents on the basis of Occupation
Source: Primary Data
CHART-2.1.4
34
Occupation Number of Respondents Percentage
Business 14 9.33
Professional 32 21.33
Government
Employee
19 12.67
Private Employee 85 56.67
Total 150 100.00
-
8/8/2019 Copy of Project 1
35/87
0102030405060708090
Busin
ess
Professio
nal
Gov
ernm
entE
mploy
ee
PrivateEm
ploy
ee
Number of Respondents
Nil
Percentage Nil
INFERENCE:
It is observed from Table 2.1.4 that, out of 150 respondents, 14 (9.33%) respondents are
businessmen, 32 (21.33%) respondents are professionals and 19 (12.67%) respondents
are government employees. The remaining 85 (56.67%) respondents are private
employees. It is inferred from that, the private employees are very interested in
investments.
TABLE-2.1.5
Classification of Respondents on the basis of Income
Source: Primary Data
35
Monthly Income Number of Respondents Percentage
Below Rs. 5000 Nil Nil
Rs. 5000 - 10000
101 67.33
Rs. 10000 - 15000
31 20.67
Above Rs. 15000
18 12.00
Total 150 100.00
-
8/8/2019 Copy of Project 1
36/87
CHART-2.1.5
0
20
40
60
80
100
120
Rs.
500
0-100
00
Rs.
100
00-15
000
Abo
veRs.
150
0
Number of Respondents
Percentage
INFERENCE:It is found from Table 2.1.5 that out of 150 respondents, 101 (67.33%) responders come
under the category of Rs 5001 Rs 10,000, 31 respondents earn in the range of Rs 10,001
Rs 15,000 and the remaining 18 respondents have a monthly income of above Rs
15,000. Therefore, it is concluded that high income group are interested in investments
than low income group.
TABLE.2.1.6
Classification of Respondents on the basis of Marital Status
Source: Primary Data
CHART-2.1.6
36
Marital Status Number of Respondents Percentage
Married 60 40
Unmarried 90 60
Total 150 100.00
-
8/8/2019 Copy of Project 1
37/87
0
10
20
30
40
50
60
70
80
90
100
Number of Respondents Percentage
Married
Unmarried
INFERENCE:
It is observed from Table 2.1.6 that, out of 150 respondents, 60 (40%) respondents aremarried and the remaining 90 (60%) respondents are unmarried. It is evident that the
respondent belonging to the married category are more than the respondents belonging tothe unmarried category.
TABLE-2.1.7
Classification of Respondents on the basis of Savings
Source: Primary Data
37
Monthly Savings Number of Respondents Percentage
Less than Rs 2,000 62 41.33
Rs 2,001 Rs 3,000 27 18.00
Rs 3,001 Rs 4,000 48 32.00
Above Rs 4,000 13 8.67
Total 150 100.00
-
8/8/2019 Copy of Project 1
38/87
CHART-2.1.7
0
10
20
30
40
50
60
70
Less than
Rs 2,000
Rs 2,001
Rs 3,000
Rs 3,001
Rs 4,000
Above Rs
4,000
Number of Respondents
Percentage
INFERENCE:
It is clear from Table 2.1.7 that, out of 150 respondents, 62 (41.33%) respondents save
less than Rs 2000 every month. But 27 (18%) respondents save Rs 2001 Rs 3000 every
month and 48 (32%) respondents save Rs 3001 Rs 4000 every month. The remaining13 (8.67%) respondents save Rs 4000 per month. Therefore, it is observed that most of
the respondents save only Rs 2000
II. INVESTOR PREFERANCES TOWARDS INVESTMENT
TABLE-2.1.8
Investors Most Preferred Investment Outlet.Source: Primary Data
38
Securities Number of
Res ondents
Percentage
Mutual Funds 47 31.33
Equity 64 42.67
Insurance 24 16.00
Derivatives 15 10.00
Total 150 100
-
8/8/2019 Copy of Project 1
39/87
CHART-2.1.8
0
10
20
30
40
50
60
70
Mutual
Funds
Equity Insurance Derivatives
Number of Respondents
Percentage
INFERENCE:
It is clear from Table 2.1.8 that, out of 150 respondents, 64(42.67%) respondents preferinvesting in shares and 47 (31.33%) respondents invest in mutual fund 24 (16%)
respondents invests in insurance. The remaining 15(10%) respondents invest in
derivatives. Therefore, it is observed that most of the respondents prefer equity.
TABLE-2.1.9
Why investor prefer the particular investment outlet:
Source: Primary Data
CHART-2.1.9
39
Returns Number of
res ondents
percentage
High risk, High return 79 52.67
Low risk, High return 52 34.67
Low risk, Low return 19 12.66
Total 150 100
-
8/8/2019 Copy of Project 1
40/87
0
10
2030
40
50
60
70
80
90
High risk, High return Low risk, High return Low risk, Low return
Number of respondents
percentage
INFERENCE:
It is clear from Table 2.1.9 that, out of 150 respondents, 79(52.67%) respondents preferhigh risk and high return and 52(34.67%) respondents prefer low risk and high return and
19(12.66%) respondents prefer low risk and low return. Therefore, it is observed that
most of the respondents prefer high risk and high return.
TABLE-2.1.10
Important determinants in selecting Investment outlet
Determinants
Level of importance
High Moderate Low
Total
Safety 131 11 8 150
Return 56 83 11 150
Liquidity 98 38 14 150
Source: Primary Data
CHART-2.1.10
40
-
8/8/2019 Copy of Project 1
41/87
0
20
40
60
80
100
120
140
160
Total
High Moderate Low
Level of importance
Safety
Return
Liquidity
INFERENCE:
Table 2.1.10 clearly shows that the investors consider safety, return and liquidity as
important factor in section of investment outlet. Among the three factors safety is the first
and foremost determinant factor. The next factor considered by the investor is liquidity.
The last factor is return. The investor needs only regular and moderate return on their
investment.
TABLE-2.1.11
Satisfaction level with return on investment
Opinion Number of Respondents Percentage
Fully satisfied 12 8
Satisfied 78 52
No opinion 37 24.66
Dis-satisfied 23 15.33
Fully dissatisfied 0 0
Total 150 100.00
CHART-2.1.11
41
-
8/8/2019 Copy of Project 1
42/87
010
2030405060708090
Fully
satisfie
Satisfied
Noopinion
Dis-satisfie
Fully
dissatisfie
Number of
Respondents
Percentage
INFERENCE:
It is found from Table 2.1.11, out of 150 respondents 12 (8%) respondents are fully satisfied with
the return on investment and 78(52%) respondents are satisfied with the return on investment.
37(24.66%) respondents are neither satisfied nor dissatisfied with the return on investment and
23(15.33%) are dis satisfied with the return on investment. Thus it can be concluded that more
than half of the respondents are satisfied with the return on investment.
TABLE-2.1.12
Allocation of Income for investment
Portion of income
available for investment
Number of Respondents Percentage
Upto 10% 54 36
11% - 20% 66 44
21% - 40%18 12
Above 40%
12 8
Total 150 100.00
Source: Primary Data
42
-
8/8/2019 Copy of Project 1
43/87
CHART-2.1.12
0
20
40
60
80
100
120
140
160
Upto
10%
11%
-20
%
21%
-40
%
Abov
e40
%To
tal
Number of Respondents
Percentage
INFERENCE:It is observed from Table 2.1.12, out of 150 respondents, 54 (36%) respondents invest
upto 10% of their monthly income 66 (44%) respondents invest 11% - 20% of their
monthly income in the financial asset. The remaining 18 (12%) and 12 (8%) respondents
invest 21% - 40% and above 40% of their monthly income in various securities
TABLE-2.1.13
Purpose of Investment
Source: Primary Data
CHART-2.1.13
43
Purpose Mean score Rank
Risk covered 61.23 I
Tax Rebate 31.63 IV
Return on investment 54.81 II
liquidity 38.94 III
-
8/8/2019 Copy of Project 1
44/87
Mean score
0
10
2030
40
50
60
70
Risk
covered
Tax Rebate Return on
investment
liquidity
Mean score
INFERENCE:
Table 2.1.13 shows that among the purpose, risk covered ranks first with a mean score
of 61.23 followed by return on investment, liquidity, tax rebate are ranked II, III and
IV with a mean score of 54.81,38.94 and 31.63 respectively
TABLE-2.1.14
Opinion on the risk in investment
Opinion Number of Respondents Percentage
Very High 65 43.33
High 52 34.67
Moderate 33 22
Low - -
Very low - -
Total 150 100.00
Source: Primary Data
CHART-2.1.14
44
-
8/8/2019 Copy of Project 1
45/87
0
1020
30
40
50
60
70
Opinion
VeryHigh
High
Moderate
Low
Very
low
Number of
Respondents
Percentage
INFERENCE:
It is found from Table 2.1.14 that, out of 150 respondents, 65 (43.33%) respondents feelthat the risk on investment are very high and 52 (34.67%) and 33 (22%) respondents feel
that the risk on investment are high and moderate respectively. Hence, it can be
concluded that more than three fourth of the respondents feel that the risk on
investment are high.
TABLE-2.1.15
Return Expected from shares
Source: Primary Data
CHART-2.1.15
45
Return expected Number of Respondents Percentage
Less than 10% - -
11%-20% 17 11.33
21%-30% 91 60.67
Above 30% 42 28.00
Total 150 100
-
8/8/2019 Copy of Project 1
46/87
0
10
20
3040
50
60
70
80
90
100
11%-20% 21%-30% Above 30%
Number of
Respondents -
Percentage -
INFERENCE:
It is found from Table 2.1.15 that 11.33 percent of the respondents expect 11% - 20%
return on shares, 60.67 percent of the respondents expects 21% - 30% and 28 percent of
the respondents expect more than 30% return on shares. Since the risk in shares is high
the return expected is also very high.
TABLE-2.1.16
Return Expected from mutual funds
Source: Primary Data
CHART-2.1.16
46
Return expected Number of Respondents Percentage
Less than 10% - -
11%-20% 76 50.67
21%-30%61
40.67
Above 30% 13 8.66
Total 150 100
-
8/8/2019 Copy of Project 1
47/87
0
10
20
30
40
50
60
70
80
11%-20% 21%-30%
Number of
Respondents
Percentage
INFERENCE:
It is found from Table 2.1.16 that out of 150 respondents 76(11.33) of the respondents
expect 11% - 20% return on mutual funds, 61(44.53) of the respondents expects 21% -
30% and 13(8.66) of the respondents expect above 30%. Since the risk is low the return
expected is not very high.
TABLE-2.1.17
Return Expected from insurance
Source: Primary Data
CHART-2.1.17
47
Return expected Number of Respondents Percentage
Less than 10% 49 32.67
11%-20% 55 36.66
21%-30% 46 30.67
Above 30% - -
Total 150 100
-
8/8/2019 Copy of Project 1
48/87
0
10
20
30
40
50
60
Less than 10% 11%-20% 21%-30%
Number of
Respondents
Percentage
INFERENCE:
It is found from Table 2.1.17 that out of 150 respondents 49(32.67) of the respondents
expect less than 10% and 55(36.66) of the respondents expect 11% - 20% return on
insurance, 46(30.67) of the respondents expects 21% - 30%. Thus investor expects 11%-
20% from their investment in insurance.
TABLE-2.1.18
Return Expected from derivatives
Source: Primary Data
CHART-2.1.18
48
Return expected Number of Respondents Percentage
Less than 10% - -
11%-20% 86 57.33
21%-30%49
32.67
Above 30% 15 10.00
Total 150 100
-
8/8/2019 Copy of Project 1
49/87
0
10
20
30
40
50
60
70
80
90
100
11%-
20%
21%-
30%
Above
30%
Number of
Respondents -
Percentage -
INFERENCE:
It is found from Table 2.1.18 that out of 150 respondents 86(57.33) of the respondents
expect 11% - 20% return on derivatives, 49(32.67) of the respondents expects 21% - 30%
and 15(10.00) of the respondents expect above 30%. Since the risk is high the return
expected is also very high.
TABLE-2.1.19
Source of awareness to investors
Source Number of Respondents Percentage
Advertisement 60 40
Company executives Nil Nil
Friends and relatives 75 50
Professional advisors 15 10
Total 150 100.00
Source: Primary Data
CHART-2.1.19
49
-
8/8/2019 Copy of Project 1
50/87
0
10
2030
40
50
60
70
80
Advertisement Friends and
relatives
Professional
advisors
Number of
Respondents
Percentage
INFERENCE:
Table 2.1.19 shows that most of the respondents get aware of the investment through
friends and relatives (50%) and advertisement (40%) and only 10 per cent of the
respondents get aware through professional advisors and none of the respondents through
company executives. Therefore, it is inferred that most of the respondents get awarethrough friends and relatives.
TABLE-2.1.20
Mode of Investment
Mode of investment Number of Respondents Percentage
Direct41 27.33
Through Agent 109 72.67
Total 150 100
Source: Primary Data
CHART-2.1.20
50
-
8/8/2019 Copy of Project 1
51/87
0
20
4060
80
100
120
140
160
Direct Through
Agent
Total
Number of
Respondents
Percentage
INFERENCE:
It is clear from Table 2.1.20, out of 150 respondents, 109 respondents are investing their
surplus funds through agent and the remaining 41 respondents are investing their surplus
funds directly. Hence, it shows that most of the respondents are investing their funds
through agents.
111. INVESTOR PREFERANCE TOWARDS INTERMEDIARIES
TABLE-2.1.21 Opinion on the Services Rendered by the Intermediaries
Opinion Number of Respondents Percentage
Fully satisfied 32 21.33
Satisfied 76 50.67
No opinion 39 26.00
Dis-satisfied - -
Fully dissatisfied 3 2.00
Total 150 100.00
51
-
8/8/2019 Copy of Project 1
52/87
Source: Primary Data
CHART-2.1.21
0
10
20
30
40
50
6070
80
Fully
satisfie
Satisfied
Noopinion
Fully
dissatisfie
Number of
Respondents
Percentage
INFERENCE:It is clear form Table 2.1.21 that out of 150 respondents 32 (21.33%) respondents arefully satisfied with the services rendered by the intermediaries. 76 (50.67%) respondents
are satisfied with the service rendered by the intermediaries. 39 (26%) respondents and 3
(2%) respondents are not satisfied with the service provided by the intermediaries. Thus,it can be concluded that most of the respondents are satisfied with the services rendered
by the intermediaries.
TABLE-2.1.22
Source of Awareness about the Intermediaries
Source Number of Respondents Percentage
Electronic media - -
Sign board 19 12.67
News papers and47 31.33
Friends and relatives 84 56.00
Total 150 100.00
Source: Primary Data
52
-
8/8/2019 Copy of Project 1
53/87
CHART-2.1.22
0102030405060708090
Sign
boar
News
papersan
Magazines
Friendsandrelativ
Number of
Respondents
Percentage
INFERENCE:It is found from Table 2.1.22 that out of 150 respondents, 19 (12.67%) respondents have
come to know about the intermediaries through sign board. 47 (31.33%) respondents
have come to know about the intermediaries through news papers and magazines and theremaining 84 (56%) respondents have come to know about the intermediaries through
friends and relatives
TABLE-2.1.23
Opinion about the Brokerage Charges
Opinion Number of Respondents Percentage
Very High 73 48.67
High 46 30.67
Moderate 31 20.66
Low - -
Very low - -
53
-
8/8/2019 Copy of Project 1
54/87
Total 150 100.00
Source: Primary Data
CHART-2.1.23
0
10
20
30
40
50
60
70
80
Very High High Moderate
Number of
Respondents
Percentage
INFERENCE:It is found from Table 2.1.23 that, out of 150 respondents, 73 (48.67%) respondents feel
that the brokerage charged by the intermediaries are very high and 46 (30.67%) and 31
(20.66%) respondents feel that the brokerage charged by the intermediaries are high and
moderate respectively. Hence, it can be concluded that more than three fourth of therespondents feel that the brokerage charged by the intermediaries are high .
TABLE-2.1.24
Opinion on the Information Rendered by the Intermediaries
Source: Primary Data
54
Opinion Number of Respondents Percentage
Excellent 23 15.33
Good 64 42.67
Average 45 30.00
Below average 13 8.67
Poor 5 3.33
Total 150 100.00
-
8/8/2019 Copy of Project 1
55/87
-
8/8/2019 Copy of Project 1
56/87
0
10
20
30
40
50
60
70
Forselling
Forboth
buyingand
Advice
regarding
buying
andselling
Number of
Respondents
Percentage
INFERENCE:
It is found from Table 2.1.25 that, 23(15.33%) of the respondents are using the service ofthe intermediaries for the purpose of selling the securities. 26(17.33%) of the respondents
are using the services of intermediaries for the purpose of purchasing the securities and
38(25.34%) of the respondents are using the services of intermediaries for the purpose of
purchasing and selling the securities and the remaining 63(42 %) of the respondents areusing the service of intermediaries for the purpose of advice regarding buy and selling.
Thus investors prefer the advice provided by intermediaries.
TABLE-2.1.26 Frequency of Using Services of Intermediaries
Frequency Number of Respondents Percentage
Daily 42 28.00
Weekly 25 16.67
Fortnightly 30 20.00
Monthly 53 35.33
Total 150 100.00
56
-
8/8/2019 Copy of Project 1
57/87
CHART-2.1.26
0
10
20
30
40
50
60
Daily Weekly Fortnightly Monthly
Number ofRespondents
Percentage
INFERENCE:It is seen from Table 2.1.26 that out of 150 respondents, 42 (28%) respondents use the
services daily. 25 (16.67%) respondents use the services weekly and 30 (20%)
respondents use the services fortnightly. The remaining 53 (35.33%) respondents use the
services once in a month. Therefore, it is concluded that most of the respondents use the
services daily.
57
-
8/8/2019 Copy of Project 1
58/87
STATISTICAL TOOLS
2.2- CHI-SQUARE TEST
Education and Source of Awareness
Education is an important factor which has significant relationship with the investment
awareness in financial asset. In order to find out whether there is any relationship
between education and awareness, a two way table has been prepared.
Source of
Awarenes
s
Age of the
Number of Respondents
TotalAdvertisemen
t
Friends
and
relatives
Profession
al advisors
Up to school level 3 11 1 15
58
-
8/8/2019 Copy of Project 1
59/87
Graduate 16 16 1 33
Post Graduate 26 33 7 66
Professional Degree 15 15 6 36
Total 60 75 15 150
H0: There is no significant relationship between education and source of awareness.
H1: There is significant relationship between education and source of awareness.
In order to find out whether there is significant relationship between educational level
and source, of awareness chi square test has been applied.
Table 2.2.1 shows the calculations to test the significant between educational level and
source of awareness.
59
-
8/8/2019 Copy of Project 1
60/87
TABLE-2.2.1
Chi square Test for Education and Source of awareness
Cell O E (O E) (O E)2
(O E)2
__________
E
R1C1 3 6.0 -3.0 9.00 1.500
R2C1 16 13.2 2.5 6.25 0.473
R3C1 26 26.4 -0.4 0.16 0.006
R4C1 15 14.4 0.6 0.36 0.025
R1C2 11 7.5 3.5 12.25 1.633
R2C2 16 16.5 -0.5 0.25 0.015
R3C2 33 33.0 - - -
R4C2 15 18.0 -3 9.00 0.500
R1C3 1 15.0 -14 196.00 13.000
R2C3 1 3.3 -2.3 5.29 1.603
R3C3 7 6.6 0.4 0.16 0.023
R4C3 6 3.6 2.4 5.76 1.600
Total 20.378
60
-
8/8/2019 Copy of Project 1
61/87
Degrees of Freedom = (row 1) * (column 1)
= (4 1) * (3 1)
= 3 X 2 = 6
Degrees of Freedom : 6
Calculated Value : 20.378
Table Value at 5% level: 12.592
INFERENCE:
Since the calculated value is more than the Table value at 5% level, the
hypotheses that educational level is not a criterion to determine the different source of
awareness is rejected. Therefore, there is significant relationship between educational
level of the investors and their source of awareness.
61
-
8/8/2019 Copy of Project 1
62/87
Income and Source of Awareness
Income is an important factor which has significant relationship with the investment
awareness in financial asset.
In order to find out whether there is any relationship between income and awareness, atwo way Table has been prepared.
Monthly income of the investors and their source of awareness
H0: There is no significant relationship between education and source of awareness.
H1: There is significant relationship between education and source of awareness.
In order to find out whether there is significant relationship between educational level
and source, of awareness chi square test has been applied.
Table 2.2.2 shows the calculations to test the significant between educational level and
source of awareness
62
Source of
Awareness
Monthly
Income Statusof the Respondents
Number of
Respondents
TotalAdvertisement
Friendsand
relatives
Professional
advisors
Below Rs 5,000 - - - -
Rs 5,001 Rs10,000 41 48 12 101
Rs 10,001Rs15,000 14 15 2 31
Above Rs 15,000 5 12 1 18
Total 60 75 15 150
-
8/8/2019 Copy of Project 1
63/87
TABLE-2.2.2
Chi square Test for Income and Source of awareness
Cell O E (O E) (O E)2
(O E)2
__________
E
R1C1 41 40.4 0.6 0.36 0.009
R2C1 14 12.4 1.6 2.56 0.207
R3C1 5 7.2 -2.2 4.84 0.672
R1C2 48 50.5 -2.5 6.25 0.124
R2C2 15 15.5 -0.5 0.25 0.017
R3C2 12 9.0 3.0 9.00 1.000
R1C3 12 10.1 1.9 3.61 0.357
R2C3 2 3.1 1.1 1.21 0.39
R3C3 1 1.8 -0.8 0.64 0.356
Total 3.132
63
-
8/8/2019 Copy of Project 1
64/87
Degrees of Freedom = (row 1) * (column 1)
= (3 1) * (3 1)
= 2 X 2 = 4
Degrees of Freedom : 4
Calculated Value : 3.132
Table Value at 5% level: 9.488
INFERENCE:
Since the calculated value is less than the Table value at 5% level, thehypotheses that income is not a criterion to determine the different source of awareness is
accepted. Therefore, there is no significant relationship between income of the investors
and their source of awareness
64
-
8/8/2019 Copy of Project 1
65/87
2.3-WEIGHTED AVERAGE METHOD
Satisfaction level of investors with return on investment
Opinion Number of Respondents Percentage
Fully satisfied 12 8
Satisfied 78 52
No opinion 37 24.66
Dis-satisfied 23 15.33
Fully dissatisfied 0 0
Total 150 100.00
In order to find out the satisfaction level of investors with regarding to the return on
investment weighted average method is used in order to find out the satisfaction level of
most of the investors.
In order to calculate the weighted average the satisfaction level is ranked in the order of5,4,3,2 and 1.
Table 2.3.1 shows the calculations of weighted average method.
65
-
8/8/2019 Copy of Project 1
66/87
TABLE-2.3.1
Weighted average on return on investment
Rank Number of
Respondents
Percentage Total score
Fully satisfied(5) 12 8 60
Satisfied(4) 78 52 312
No opinion(3) 37 24.66 111
Dis-satisfied(2) 23 15.33 46
Fully dissatisfied(1) 0 0 0
Total 150 100.00 529
Mean score = 529/150
= 3.52
INFERENCE:
From the above table 2.3.1 it is clear that most of the respondents are satisfied
with the return on their investments.
66
-
8/8/2019 Copy of Project 1
67/87
Opinion on the of risk in investments
Opinion Number of Respondents Percentage
Very High 65 43.33
High 52 34.67
Moderate 33 22
Low - -
Very low - -
Total 150 100.00
In order to find out the amount of risk involved in the investment weighted average
method is used in order to find out the level of risk prevailing in the investment.
In order to calculate the weighted average the risk level is ranked in the order of 5,4,3,2
and 1.
Table 2.3.2 shows the calculations of weighted average method.
67
-
8/8/2019 Copy of Project 1
68/87
TABLE-2.3.2
Weighted Average on Risk in Investment
Rank Number of
Respondents
Percentage Total score
Very High(5) 65 43.33325
High(4) 52 34.67208
Moderate(3) 33 2299
Low(2) - - -
Very low(1) - --
Total 150 100.00632
Mean score = 632/150
= 4.2
INFERENCE:
From the above table 2.3.2 it is clear that most of the respondents feel that the
amount of risk prevailing in investment is HIGH.
68
-
8/8/2019 Copy of Project 1
69/87
Opinion on the Services Rendered by the Intermediaries
Opinion Number of Respondents Percentage
Fully satisfied32 21.33
Satisfied76 50.67
No opinion 39 26.00
Dis-satisfied- -
Fully dissatisfied3 2.00
Total 150 100.00
In order to find out the satisfaction level of investors with regarding to the service
rendered by intermediaries weighted average method is used in order to find out the
satisfaction level of most of the investors.
In order to calculate the weighted average the satisfaction level is ranked in the order of
5,4,3,2 and 1.
Table 2.3.3 shows the calculations of weighted average method.
69
-
8/8/2019 Copy of Project 1
70/87
TABLE-2.3.3
Weighted Average on Services Rendered by the Intermediaries
Rank Number of
Respondents
Percentage Total score
Fully satisfied(5)32 21.33
160
Satisfied(4)76 50.67
304
No opinion(3)39 26.00
117
Dis-satisfied(2)- -
-
Fully dissatisfied(1)3 2.00
3
Total 150 100.00 584
Mean score = 584/150
= 3.89
= 4
INFERENCE:
From the above table 2.3.3 it is clear that most of the respondents are satisfied
with the services rendered by intermediaries.
70
-
8/8/2019 Copy of Project 1
71/87
Opinion about the Brokerage Charges
Opinion Number of Respondents Percentage
Very High 73 48.67
High 46 30.67
Moderate 31 20.66
Low - -
Very low - -
Total 150 100.00
In order to find out the satisfaction level of investors with regarding to the brokerage
charges by intermediaries weighted average method is used in order to find out the level
of brokerage charged.
In order to calculate the weighted average the brokerage level is ranked in the order of
5,4,3,2 and 1.
Table 2.3.4 shows the calculations of weighted average method.
71
-
8/8/2019 Copy of Project 1
72/87
TABLE-2.3.4
Weighted Average on Brokerage Charges
Rank Number of
Respondents
Percentage Total score
Very High(5) 73 48.67365
High(4) 46 30.67184
Moderate(3) 31 20.6693
Low(2) - - -
Very low(1) - --
Total 150 100.00642
Mean score = 642/150
= 4.28
= 4
INFERENCE:
From the above table 2.3.4 it is clear that most of the respondents feel the
brokerage charged by intermediaries is HIGH.
72
-
8/8/2019 Copy of Project 1
73/87
-
8/8/2019 Copy of Project 1
74/87
TABLE-2.3.5
Weighted Average on Information Rendered By Intermediaries
Mean score = 537/150
= 3.58
= 4
INFERENCE:
From the above table 2.3.5 it is clear that most of the respondents feel that the
information rendered by intermediaries to investors regarding their investment is GOOD.
74
Rank Number of
Respondents
Percentage Total score
Excellent(5) 23 15.33115
Good(4) 64 42.67 256
Average(3) 45 30.00135
Below average(2) 13 8.6726
Poor(1) 5 3.335
Total 150 100.00 537
-
8/8/2019 Copy of Project 1
75/87
CHAPTER-3
75
-
8/8/2019 Copy of Project 1
76/87
3.1-FINDINGS OF THE STUDY
It is absorbed that out of the total 150 respondents, 34 (22.64%) of the
respondents are in the age group of below 30 years and 78 (52%) are in the age
group of 31 40 years. 23 (15.33%) of the respondents are in the age group of 41 50 years and the remaining 15 (10%) are in the age group of above 50 years.
Therefore, it is concluded that the most dominating age group of the respondents
are in the age group of 31 40 years.
Out of 150 respondents, 105 (70%) are male and 45 (30 %) are female. Hence, it
is found that males are more in numbers than the female in the field of
investment.
Out of 150 respondents 15 (10%) of the respondents have studied up to school
level, 33 (22%) of the respondents have studied graduation and 66 (44%) of themhave studied post graduation. The remaining 36 (24%) of the respondent have
studied professional degree. Hence, it is observed that the respondents belonging
to post graduates are more than other categories.
Out of 150 respondents, 14 (9.33%) respondents are businessmen, 32 (21.33%)
respondents are professionals and 19 (12.67%) respondents are government
employees. The remaining 85 (56.67%) respondents are private employees. It is
inferred from that, the private employees are very interested in investments.
Out of 150 respondents, 101 (67.33%) responders come under the category of Rs
5001 Rs 10,000, 31 respondents earn in the range of Rs 10,001 Rs 15,000 and
the remaining 18 respondents have a monthly income of above Rs 15,000.
Therefore, it is concluded that high income group are interested in investments
than low income group.
Out of 150 respondents, 60 (40%) respondents are married and the remaining 90
(60%) respondents are unmarried. It is evident that the respondent belonging tothe married category are more than the respondents belonging to the unmarried
category.
Out of 150 respondents, 62 (41.33%) respondents save less than Rs 2000 everymonth. But 27 (18%) respondents save Rs 2001 Rs 3000 every month and 48
(32%) respondents save Rs 3001 Rs 4000 every month. The remaining 13
(8.67%) respondents save Rs 4000 per month. Therefore, it is observed that mostof the respondents save only Rs 2000
76
-
8/8/2019 Copy of Project 1
77/87
Out of 150 respondents, 64(42.67%) respondents prefer investing in shares and 47
(31.33%) respondents invest in mutual fund 24 (16%) respondents invests in
insurance. The remaining 15(10%) respondents invest in derivatives. Therefore, it
is observed that most of the respondents prefer equity.
Out of 150 respondents, 79(52.67%) respondents prefer high risk and high returnand 52(34.67%) respondents prefer low risk and high return and 19(12.66%)respondents prefer low risk and low return. Therefore, it is observed that most of
the respondents prefer high risk and high return.
The investors consider safety, return and liquidity as important factor in section of
investment outlet. Among the three factors safety is the first and foremost
determinant factor. The next factor considered by the investor is liquidity. The last
factor is return. The investor needs only regular and moderate return on their
investment.
Out of 150 respondents 12 (8%) respondents are fully satisfied with the return oninvestment and 78(52%) respondents are satisfied with the return on investment.
37(24.66%) respondents are neither satisfied nor dissatisfied with the return on
investment and 23(15.33%) are dis satisfied with the return on investment. Thus it can be
concluded that more than half of the respondents are satisfied with the return on
investment.
Out of 150 respondents, 54 (36%) respondents invest up to 10% of their monthly
income 66 (44%) respondents invest 11% - 20% of their monthly income in the
financial asset. The remaining 18 (12%) and 12 (8%) respondents invest 21% -
40% and above 40% of their monthly income in various securities.
Among the purpose of investment, risk covered ranks first with a mean score of61.23 followed by return on investment, liquidity, tax rebate are ranked II, III
and IV with a mean score of 54.81,38.94 and 31.63 respectively.
Out of 150 respondents, 65 (43.33%) respondents feel that the risk on investment
are very high and 52 (34.67%) and 33 (22%) respondents feel that the risk on
investment are high and moderate respectively. Hence, it can be concluded thatmore than three fourth of the respondents feel that the risk on investment are
high.
It is found that 11.33 percent of the respondents expect 11% - 20% return on
shares, 60.67 percent of the respondents expects 21% - 30% and 28 percent of therespondents expect more than 30% return on shares. Since the risk in shares is
high the return expected is also very high.
77
-
8/8/2019 Copy of Project 1
78/87
Out of 150 respondents 76(11.33) of the respondents expect 11% - 20% return on
mutual funds, 61(44.53) of the respondents expects 21% - 30% and 13(8.66) of
the respondents expect above 30%. Since the risk is low the return expected is not
very high.
Out of 150 respondents 49(32.67) of the respondents expect less than 10% and55(36.66) of the respondents expect 11% - 20% return on insurance, 46(30.67) of
the respondents expects 21% - 30%. Thus investor expects 11%-20% from their
investment in insurance.
Out of 150 respondents 86(57.33) of the respondents expect 11% - 20% return on
derivatives, 49(32.67) of the respondents expects 21% - 30% and 15(10.00) of the
respondents expect above 30%. Since the risk is high the return expected is also
very high.
Most of the respondents get aware of the investment through friends and relatives(50%) and advertisement (40%) and only 10 per cent of the respondents get aware
through professional advisors and none of the respondents through company
executives. Therefore, it is inferred that most of the respondents get aware
through friends and relatives.
Out of 150 respondents, 109 respondents are investing their surplus funds through
agent and the remaining 41 respondents are investing their surplus funds directly.
Hence, it shows that most of the respondents are investing their funds through
agents.
Out of 150 respondents 32 (21.33%) respondents are fully satisfied with theservices rendered by the intermediaries. 76 (50.67%) respondents are satisfied
with the service rendered by the intermediaries. 39 (26%) respondents and 3 (2%)
respon