Major Project Presentation

Study of Investor
Perception towards
Stock Market
Presented by - Shubhadeep Sen Neogi
BBA (VI) E
Roll No. 04224501720
Introduction
● A stock market or share market is the aggregation of buyers and sellers of stocks (also called
shares) which represent ownership claims on businesses. These may include securities listed in
the public stock exchange as well as stock that is traded privately.
● Companies list their stocks/shares on the stock exchange, making it more liquid and attractive
to the investors who are then compelled to the buy the shares after making thorough
investment decisions.
Literature Review
● Stock market has become an attractive investment avenue for most of the investors, and stock
market has enormously grown over the years. But lot of investors fear to invest in stock market
due to the volatility often seen in share market. The risk often undertaken by the investors in
share market huge and there exist fear among the investors of losing their hard-earned income.
Even though the return, the investors receive in stock market is high, the investors need to bear
an equal amount of risk a s well as moreover the investors must sure of which investment
avenue, they are selecting in order to ensure high returns.
● In the past studies, the behaviors and attitudes among investors towards stock market were
studied. The similar results demonstrated that investors usually choose short-term investments
as their choice and their decisions are based on the degree of risk factors. (Rajagopalan &
Gurusamy, 2015; Trang & Tho, 2017; Muthumeenakshi, 2017; Manimozhy & Borah, 2018;
Akhtar, Azeem, Basiouni, Teoh & Alvi, 2020; Lim & Teoh, 2021).
● Furthermore, previous study had indicated that investors are well-equipped with updated
investment knowledge nowadays (Manimozhy & Borah, 2018). With an increased level of
knowledge about financial information and increased ability to analyze the information, investors
could improve the capacity to jump into risk investment for earning high profit by managing
investment efficiently.
Objectives of Research
● Objective
1. To gather data on investor’s perception

towards investing and demographic factors
that influence their decisions.
2. To study the basis and degree of investor

preference on options such as Gold, Real
Estate, Stock Market, Mutual Funds.
3. To find investor’s expectations towards the

future of stock market.
● Methodology
Questionnaire method, i.e. Primary Research is

applied here to gather the data on the people’s
investment perceptions. For this purpose, a
sample size of 50 respondents had been
questioned for data collection.
● Result Analysis
Analysis is done using MS-Excel to compare the

responses to the questions asked in the
questionnaire.
● Conclusions
Inferences based on the result analysis.

Research Methodology
● Nature of Study - This project is based on a ● Nature of Data - The nature of data can be
survey conducted which is primary in nature. both quantitative and qualitative, depending
on the questions. In this survey, most of the
questions are close-ended questions.
● Tools - Interviews, Questionnaires and
Surveys are the tools used to collect data in
the primary research. ● Statistical Tool - The statistical tool used here
to analyse the data is Pie Chart.
Questionnaire
● What is the primary objective of investment?
● What factors do you keep in mind while investing?
● Which investing option do you prefer to invest in?
● Do you think Indian economy will increase and change the

future of investment business?
Finding and Analysis
● Ques – Primary objective of Investment
● The analysis shows that out of the total respondents, 24% invest for good returns while the majority 30%
invest for the tax savings benefit. Out of all the respondents, 16% invest keeping in the mind the
uncertain future while a very less fraction invests for liquidity purpose. Remaining 20% invest for their
children’s career.
● Ques – Factors kept in mind while investing?
● The pie chart depicts that 30% which is the majority of investors invest keeping in mind the tax saving
benefits while a meager 6% invest for the liquidity factor. 24% of the investors invest for affordability and
simplicity. Remaining 16% invest keeping in mind the safety factor of stock investments.
● Investment option you prefer to invest in?
● The analysis graph given below can be interpreted such that maximum responses obtained implied
that 14% respondents are investing in stock market while 32% respondents are finding insurance as
the most preferred investment field and best decisions seeing ongoing crisis. Next is 24% the mutual
fund sector people want to invest in. Whereas16%, 10% and 4% of respondents are going for bank
deposits, real estate and other (which maybe be gold) respectively.
Findings and Analysis
● Ques – Do you think Indian Economy with increase and change the future of investment
business?
● A majority of impact investors (30%) expect to maintain their 2020 investment plans, seeking
to invest the same amount of capital that they had initially expected to invest and thinks that
the economy will stay the same. Relatively even (14%) expect to increase and decrease (20%)
Conclusion
● At last the conclusion of the project is that most of the investors invest their savings in Shares by
getting their information mostly from the internet followed by brokers, television and other
sources. Most people prefer to invest their savings in banks due to low risk and regular returns.
Mutual Fund investments and stock market investments have also received positive response from
the respondents. The fundamental and technical analysis provided by the broker companies also
plays a very vital role in the base of investment in shares. Most investors perceive that the level of
sensex at present is high and thus tend not to invest in that period of time. But on the other hand
there are also those investors who will invest no matter the degree of risk involved in hopes for
higher gains in the future.
● In the wake of the implementation of remote working policies across sectors, video
conferencing apps such as Zoom have witnessed an immense increase in revenue and
customer base. The app added over 2.2 Mn active users in February this year. With the
pandemic bringing to light new innovations powered by new-age technology, the future will
see start-ups in the digital and technology sector flourish.
Recommendations
● Investors are recommended to take a little risk in their portfolio so as to maximize their own returns
since the markets have shown recovery now.
● Therefore, taking calculated risks should fetch them good returns. Portfolio managers/Fund managers are recommended
to diversify the risks and encourage risk adverse investors to take on some risk in their portfolio.
● Also, newer investment avenues can be explored which the investors are not aware of and can be encouraged to
include those in the portfolio.
Limitations
The following were the limitations encountered during the preparation of the project: -
● Due to time constraints the sample size had to be confirmed to 50.
● The respondents have replied to the queries recalling from their memory. Therefore recall bias and
personal bias are possible.
● The study has been limited selected investment avenues.
● The respondents were unable or unwilling to give a complete and accurate response to certain
questions.
Thank You

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Study of Investor

1. To gather data on investor’s perception

2. To study the basis and degree of investor

3. To find investor’s expectations towards the

Questionnaire method, i.e. Primary Research is

Analysis is done using MS-Excel to compare the

Inferences based on the result analysis.

● What factors do you keep in mind while investing?

● Which investing option do you prefer to invest in?

● Do you think Indian economy will increase and change the

● Due to time constraints the sample size had to be confirmed to 50.

● The study has been limited selected investment avenues.

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