Q.1 Which age group do you belong?
Age Group No. of Respondents
18-30 14
30-45 89
45-55 58
Above 55 19
Analysis:
The above diagram shows that 14 respondents were from 18 to 30 age group, 89 respondents were from 30 to 45 age group, 58 respondents were 45 to 55 age group and 19 respondents were from above 55 age group.
2) Have you ever invested in stock market?
Invested in Stock Market No. of Respondents
Yes 150
No 30
Analysis:
The above diagram shows that 150 respondents said that they are invested in the stock market and 30 respondents said that they did not invest in the stock market.
Q3) If yes, in which type of market?
Type of Market No. of Respondents
Primary 100
Secondary 30
Both 20
Analysis:
The above diagram depicts that 100 respondents said that they invest in primary market, 30 respondents said that they invest in secondary market and 20 respondents said that they invest in both markets i.e. primary as well as secondary.
Q4) What is the source of information regarding primary market?
Source of Information No. of Respondents
News 16 Broker 89 TV 6 Internet 2 Any Other 7 Analysis:
The above diagram shows that 89 respondents i.e. maximum from total 120 respondents said that they got the knowledge from their brokers, 16 respondents said that they got knowledge about primary market from News/newspaper, 6 respondents got information through TV, 2 from Internet and 7 respondents said any other sources for information.
Q5) In which of the following you would like to invest your money?
Like to Invest No. of Respondents
Private Co. 43 Govt. Co. 18 Semi Govt. 37 Any Other 22 43 18 37 22 0 5 10 15 20 25 30 35 40 45 50
Private Co. Govt. Co. Semi Govt. Any Other
Column1
Analysis:
The above diagram depicts that 43 respondents said that they like to invest in Private companies, 18 respondents said Govt. companies, 37 respondents said they like to invest in Semi-Govt. companies and 22 respondents said they like to invest in any other companies.
Q6) How much % of your income you invest yearly?
%age of Income Invest No.of Respondents
0-20% 49
20-35% 32
35-50% 29
Above 50% 10
Analysis:
The above diagram shows that 49 respondents said that they invest upto 20% of their income in primary market, 32 respondents said that they invest upto 20% to 35% of their income, 29% respondents said they like to invest in 35% to 50% of their income, and 10 respondents said that they invest above 50% of their income in primary market.
Q7) In which sector you like the invest the money?
Investment Sector No. of Respondents
Insurance 16 Infrastructure 48 Telecom 33 IT Sector 23 Any Other 10 Analysis:
The above diagram shows that 16 respondents said that they invest in insurance sector, 48 respondents said they invest in Infrastructure sector, 33 respondents said that they invest in Telecom sector, 23 respondents said that they invest in IT sector and 10 respondents said that they invest in any other sectors.
Q8) How much is your portfolio?
Portfolio No.of Respondents
Rs.10000 to 50000 41 Rs.50000 to 1 Lac 58
Above Rs.1 Lac 21
Analysis:
The above diagram shows that 41 respondents said that their yearly portfolio has been between Rs.10000 to 50000, 58 respondents said that their yearly portfolio has been between Rs.50000 to 1 Lac and 21 respondents said that their yearly portfolio has been above Rs. 1 Lac.
Q9) For how much period you would prefer to invest?
Investment Time No. of Respondents
Short Term 96 Long Term 24 96 24 Short Term Long Term Analysis:
The above diagram shows that 96 respondents said that they invest for short time and 24 respondents said that they invest for long term.
Q10) Investing in primary market is risky or not?
Risky Investment No. of Respondents
Yes 26
No 94
Analysis:
The above diagram shows that 78% respondents i.e. 94 said that primary market investment is risky and 22% respondents i.e. 26 said that primary market investment is not risky.
Q11) If yes, then how much risky in this?
Risk No. of Respondents
Highly 6 Moderately 2 Lower 18 6 2 18 0 2 4 6 8 10 12 14 16 18 20
Highly Moderately Lower
Analysis:
The above diagram shows that 6 respondents said that primary market is highly risky, 2 respondents said moderately risky and 18 respondents said primary market is risky but not highly or moderately.
Q12) How much return has been earned from primary market?
%age of Return No. of Respondents
10-50% 63
50-100% 31
100-150% 18
150-200% 8
Analysis:
The above diagram shows that 63 respondents said that they earn 10-50% return from their primary market investments, 31 respondents earn 50-100% return, 18 respondents earn 100 to 150% return and 8 respondents said that they earn between 150 to 200% return from primary market.
Q.13 What criteria you used to invest in any IPO?
Criteria for Invest No. of Respondents
Past Experience 29 Company Results 59
Any Other 32
Analysis:
The above diagram shows that 29 respondents said that they use their past experience for new investment into primary market, 59 respondents said they watch current results of companies in which they want to invest and 32 respondents said they watch other things whenever they go for investment in primary market.
Q.14 From where you get to know about these criteria?
Knowledge about Criteria No. of Respondents
Share Broker 87
Newspaper 25
Magazine 8
Analysis:
The above diagram shows that 87 respondents said that know about their criteria from their Share brokers, 25 respondents said they got knowledge from Newspapers and 8 respondents said they got knowledge from Magazines.
FINDINGS
• Most of respondents said that they are invested in the stock market and few of them said that they did not invest in the stock market.
• Maximum respondents said that they got the knowledge from their brokers, & some of them said that they got knowledge about primary market from News/newspaper & very few respondents got information through TV from Internet and any other sources for information.
• Retail investor divert their fund from the banking system to the primary market. As the interest rate of saving account deposit decreased very much.
• Most of respondents said that they invest less portion of their income in primary market. Very few investors like to invest major portion of their income in primary market.
• Respondents view is that primary market investment is risky. So there is a fear in the mind of respondents about to invest in primary market.
• The study shows that maximum respondents among the sample respondents are getting information related to the different services from the agents. It implies that most powerful source of information about services is an agent.
• There is a need to bring awareness among the general public about primary market.
SUGGESTIONS
On the basis of the Market survey conducted has put very interesting findings in the Market. The very first suggestion to the investor is that the best thing for the investors to do to ensure that they are not cheated in this IPO boom, is to study the prospectus themselves, read various comments and take their own decision. Investors have to beware as all those who are keen to grab a piece of the cake of the impending IPO boom, are doing so at their cost. Keep in mind three P’s before investing in any IPO & Three P’s are
Promoter Performance Price
• The next best suggestion to the investor is that they should be steer clear of IPO’s from lesser known industry and focus on offerings by well known industry leader with quality management and strong financials.
• The investor should not follow the IPO boom blindly as they can get cheated as they during nineties IPO fiasco.
• The companies should make regular contact with his customer through his marketing executives. This would not only help in strengthening the business relation but would also help in taking proper feedback of their products.
• The majority of customers are price conscious so they should improve or decrease their price/commission rate.
• The companies should concentrate more on the sale promotion activities through different media.
• The market is not well aware of the product line of the companies, so companies should give full information of there product line to the investors.
• In corporate and institutions, people are looking for better service. So by providing this it can gain the big reach its break even as soon as possible and can earn profit from there.
• Customers get dissatisfied very soon. So they must be supported by a good customer care unit. They need care and by providing that a long customer- organization relationship can be built.
CONCLUSION
This project is based on the study of “Investors attitude towards primary market”. In the today scenario it’s very important to study the customer’s psychological behaviour regarding the various services provided by them.
In the end, I conclude that investor should not invest their hard earned money blindly in the IPO’s but they should invest their money by taking different safeguards like understand the company business, who its promoter are, how is its management, its risk factor and pricing of the issue etc.
Although there is SEBI to protect the investor but he company which follow the legal binding of the SEBI is not fool proof that the company is a good one.
It has been concluded that on the one hand the customers are somewhat satisfied but on the other hand, still some improvements are required. So, the broking companies segment is flooded with the new schemes from new & existing players and moreover, lot many schemes are waiting to hit the ramp in the coming years.
• The main reason behind people not wanting to have investing of a particular company is the lack of proper information. Moreover, people don’t want to come out of cocoon of their seemingly uncomplicated life. They seem satisfied with their old ways and are wary of modern, new age products.
• The most important factor that attracts the people towards investment in primary market is the communication factor. This is the most important reason and for this, people feel persuaded to buy it.
BIBLIOGRAPHY
1) M.Y Khan., “Financial Services”, Himalaya publishing house Pvt. Ltd. New Delhi, 2001, p-10-20.
2) Kothari, C.R, “Research methodology methods & techniques”, 2nd edition, New
age international ltd. Publishers, 2005, P. No. 27-42.
3) Wilkinson & Bhandarkar, “Business Research Methodology”, 6th edition, Tata
McGraw Hill Publications, Delhi, 2005, PP 237-243.
4) Dr. Bansal K Lalit, “Merchant Banking & Financial Services” Vikas Publications, 2002, (Page 152- 155) (Page 175-185)
JOURNALS and MAGAZINES:-
1) Applied Finance, page no 261-268, volume 5 / Dec.2007. 2) Financial review, edition January 2007, pages no 34-40. 3) Management Accountant, May 2006 P. No.- 359-412.
Websites
1. www.thehindubusinessline.com 2. www.anandrathi.com
3. www.prowessdatabase.com 4. www.indiatimes.com
QUESTIONNAIRE Q1) General Information 1. Name ____________________________ 2. Age ______________ 3. Occupation a) Businessman b) Serviceman c) Professional d) Any other 4. Annual Income
a) Rs.50000 to 1 Lac b) Rs.1 Lac to 3 Lacs c) Above Rs.3 Lacs
Q2) Which age group do you belong?
18 - 30 30 - 45 45 - 55 above 55 Q3) Have you ever invested in stock market?
Yes No
Q4) If yes, in which type of market?
Primary Market Secondary Market
Q5) What is the source of information regarding primary market?
News Broker TV Internet Any
other
Q6) In which of the following you would like to invest your money?
Private Co. Govt. Co. Semi Govt. Any other Q7) How much % of your income you invest yearly?
0-20% 20-35% 35-50% 50% & above Q8) In which sector you like the invest the money?
Insurance Infrastructure Telecom IT Sector Any Other
Q9) How much is your portfolio?
Rs.10000 – 50000 Rs.50000 – 1 Lac Above 1 Lac Q10) For how much period you would prefer to invest?
Short term Long term (5 & above) Q11) Investing in primary market is risky or not?
Yes No
Highly Moderately Lower Q13) How much return has been earned from primary market?
10% – 50% 50%-100% 100%-150% 150% - 200% Q.14 What criteria you used to invest in any IPO?
Past Experience Company Result Any Other Q.15 From where you get to know about these criteria?