“A STUDY ON STOCK MARKET AWARENESS
AMONG MANAGEMENT STUDENTS IN DELHI”
Submitted To
New Delhi Institute of Management
50 (B&C), 60, Tughlakabad Institutional Area,
New Delhi-110062
E-mail:placement@ndimdelhi.org
Website: www.ndimdelhi.org
Submitted By
Aviral Kumar Jha (21416)
Ayushi Singh (21150)
Siddhanth Sharma (21457)
Shivangi Kumari (21120)
Ritika Pratihari (21446)
Post Graduate Diploma in Management
Batch
(2021-2023)
Under The Guidance of
Dr. Prof Anand Jaiswal
New Delhi Institute of Management
50 (B&C), 60, Tughlakabad Institutional Area,
New Delhi-110062
Chapter 1
Introduction
&
Research Methodology
1.1 Introduction
Successful companies thrived and survived in this huge competitive world due to presence of
major factor- strong financial conditions. And today one of the most prominent mediums that
has contributed in raising the finance of big companies like Reliance industries, Infosys, HDFC
Bank Ltd., TCS is Stock Market. It is basically a facility that has let companies to list their
stocks (that are claims of ownership) in market in return of finance or capital. It allows
businesses to raise additional capital by selling shares in public market. A stock exchange is
designated market for exchanging different types of securities in a controlled and secure
environment. As it unites a huge number of market participants who wish to purchase and sell
shares, it guarantees fair pricing practices. While earlier it used to operate through paper-based
physical share certificates, today the system works electronically. It has also given an
opportunity for common man to become a shareholder of a company.
The concept of Stock Market consists of various aspects such as portfolio of investments,
financial literacy, raising capital, listing shares, investments options such as shares, bonds and
mutual funds, growth of companies, performance of industry and so on. It has become so
important that it is considered as one of the indicators to assess the social-economic dynamics
of a country. If the stock market shows up trending phase, it depicts the probable economic
growth and development of a country. Stock Market is directly related to factors present in
economy; therefore, it rises or crashes depending on such factors.
Market conditions that create an impact on stock market performance are volatile in nature and
are ought to change due to different factors existing in economy. The situation leads one to
emphasize the importance of quantum of financial knowledge one has to possess to understand
the working of stock market. The changing dynamics of market cannot be easily grasped by
stakeholders unless the terms and aspects are known to the market participants. This is such a
vast concept that it has to be introduced to people at early stage, especially the students so as
to understand the operations of Stock market.
Commerce and Stock market are interrelated to each other as the exchange market is a part of
Commerce. Since it is a major determinant of progress of economy, it is important to develop
financial literacy among students who are the future of a country. Students especially of
Management background who are more updated with commercial world and are used to the
financial terms are comparatively familiar to working of Stock market system. Management
students are enlightened and encouraged to come up with innovative business practices and
realize the importance of raising funds through listing shares in market. Apart from considering
Stock market as a means to raise capital, it also serves as a means for Management students to
trade, invest and hedge funds. They realize the importance of finance and the applicable ways
to use it. So, acquiring financial knowledge is an important aspect to understand, expertise and
predict the probable effects of factors existing in economy so as to adapt the volatility arising
in stock market and to assess the right mix of portfolio and diversification of funds. This would
ultimately build an inclination towards wide investments options available in market in the
form of equities, mutual funds, bonds and so on. Basically, it can be concluded by saying that
they are such prospects who could contribute in developing the investment and saving habit
among younger generations.
Stock market functioning requires one to be well versed with the aspects related to it. So, in
the light of developing financial literacy, understanding the elements associated with Stock
market and to gain insight about the interests and investment pattern in Stock market among
Management students, the study focuses on Stock market awareness among Management
students in Delhi.
Meaning and concept of Stock market
3.1 Introduction
Stock market are the most dynamic type of market for securities which basically trade in
financial assets, whether of government and semi government bodies or other public bodies as
well as shares and debentures issued by joint stock companies. Securities market or Stock
market is a component of the wider financial market where securities can be bought and sold
between parties on the basis of demand and supply. It encompasses equity market, bond market
and derivatives market where prices and participants can be determined and exchange is
facilitated. It has established a nationwide trending facility for all types of securities, ensuring
equal access to all investors all over the country through an appropriate communication
network. It provides a fair, efficient and transparent system of trading using electronic trading
system. A Stock Exchange can operate only if it is recognized by the Government under the
Securities Contracts (Regulation) Act 1956. The recognition is granted under section 3 of the
Act by the Central Government, Ministry of Finance. Besides the above Act, the Securities
Contract (Regulation) Rules were also made in 1957 to regulate certain matters relating to
trading on the Stock Exchanges such as: Opening/ Closing of the Stock Exchanges,
administration, timing of trading, control of the settlement and other activities of the Exchange,
regulation of brokers’ trading, brokerage charges, arbitration and settlement of disputes etc.
Stock market is recognized only after the government is satisfied that its rules and Byelaws
conform to the conditions prescribed for ensuring fair dealings and protection to investors. The
first stock market was set up in Bombay in 1875. Since then, the number of Stock Exchanges
in the country grew to 23 including the Over-the-Counter Exchange of India and the NSE.
Currently seven Stock Exchanges exist in India- BSE Ltd, Calcutta Stock Exchange Ltd, India
International Exchange (India INX), Magadh Stock Exchange Ltd, Metropolitan Stock
Exchange of India Ltd. National Stock Exchange of India Ltd, NDE IFSC Ltd, out of which
four has been given permanent recognition.
Stock Market is considered as a subset of Commerce that clearly contributes in the
development of the economy by enacting as a thread so as to connect to different constituents
of market such as brokers firms, financial institutions, investment companies which actively
participate as dealers, traders or as intermediaries. Today, stock market constitutes of small
individual stock investors to large traders’ investors who can be based anywhere in the world
and may include banks or insurance companies. But this was not the case earlier when there
were many restrictions on private sector on the account of Industrial licensing. Their fund
requirements were met through loans from nationalized banks and from public sector
development banks. Even post Bombay Securities Contract Control Act 1925, there were limits
on the role of private sector and on the issue of securities by the private sector which did not
develop the Indian stock market as a whole. The trading and settlement infrastructure was weak
back then and settlement system was completely paper based. Market intermediaries were
largely unregulated, disclosure requirements were inadequate and the regulatory structure was
fragmented and administered by different agencies. There was no apex institution for regulation
of securities markets. In fact, many issues were faced in Securities market before liberalization,
some of which are as follows:





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Multiplicity of administration
Poor disclosure in prospectus, balance sheet was not made available to investors
Investors faced problems of fund delays
Management of exchanges was dominated by brokers
Capital adequacy concept did not exist back then
No prohibition on insider trading and fraudulent and unfair trade practices
It was then after the establishment of Securities Exchange Board of India (SEBI) in 1988 and
post economic reforms in 1991, securities market went through broader changes and wider
acceptance. It aimed at boosting the private sector of the economy and at the allocation of
capital through market channels. From just being the medium of raising funds earlier, to now
being the crux of the financial system, it has evolved in many ways and serves in different ways
to economy. It has played multiple roles in an economy which makes it vital. Some of them
are as follows:
 Mobilizing savings into investments so as to promote healthy habit of investments
among public.
 Facilitating funds between market participants such as between business organizations
and investors.
 Information dissemination
 Better allocation of capital to different alternatives.
 Acts as an indicator of status of economy.
 Investor protection and education
A Stock market may be physical or entirely virtual. The Bombay Stock Exchange (BSE) is
physically located in Dalal Street in Mumbai. As almost all major stock markets across the
globe now operate electronically, the exchange maintains trading systems that efficiently
manage the buy and sell orders from various market participants. They perform the price
matching function to facilitate trade execution at a price fair to both buyers and sellers.
Stock market has boosted the liquidity in the market through smooth flow of funds to different
market participants. Following are few of the functions of Stock market mechanism:
i.
Listing of securities: One of the major of the Stock market is to provide for listing of
securities of companies with a view to facilitate trading in them. Listing means
ii.
iii.
iv.
v.
vi.
vii.
admission of shares of a company to trading on the stock exchange and to a quotation
of its share price. This helps the process of investment and disinvestment by savers and
imparts liquidity to the investments made by the public. Hence it provides a venue for
savings to flow into the corporate sector through trading in the securities of the
companies and providing liquidity to them.
Price determination: Continuous price formation of securities is the main function of a
stock market. Based on the demand and supply in market, it has facilitated in putting a
value on the securities which provides logical estimates to both buyers and sellers and
thus helps in fixation of price securities.
Helps to raise capital: Stock market has contributed in economy by raising funds
through domestic means as well through raising capital through foreign market. Due to
which currency rate improves and more international trade is undertaken by
government.
Regulates conduct of business: Stock market requires corporations to submit their
audited balance sheet and annual reports to Stock Exchanges. Company dealing in fair
transactions only can have their shares transacted and could submit the relevant
documents. If not, strict actions are taken and such companies are blacklisted.
Helps in speculation: Stock market has facilitated speculators to exchange securities in
order to reap high profits due to the fluctuations in securities prices. Moreover, SEBI
strictly regulates this aspect by issuing guidelines for such practices so that it is
conducted within controlled environment.
Fair dealing: Rules and bylaws are clearly defined under Stock market mechanism, so
it helps to transact securities among various market participants with great measure of
safety and provides adequate protection to investors.
Contributes to Economic growth: While making investments or raising funds by
business organizations or other entities, capital flows from savers or investors to
entities. This will ensure healthy habits of wealth creation among investors and would
facilitate businesses to conduct operations uninterruptedly.
Stock market has ensured not only adequacy of capital in market but has mobilized funds from
investors to entities through the trade in financial assets. It has acted as a plank between
business organizations, investors, traders and speculators, since the industry performance was
clearly visible through stock market operations which facilitated investors to lay their funds to
prospective companies. But stock market mechanism involves many risks too while transacting
securities such as market fluctuations, performance of the overall sector and capital issues. This
focuses upon the fact that securities market operates under variable factors and it is important
to have a control over its mechanism. Due to existence of regulatory bodies like SEBI, stock
market has thrived to be successful in market today as investors have started understanding the
importance of trading through it.
Stock market Awareness
4.1 Introduction
Stock markets are vital components of a free-market economy because they enable a
democratized access to trading and exchange of capital for investors of all kinds. It is a catalyst
to the development of the nation. It is highly sensitive to the factors existing in economy, due
to which its ever-changing nature makes it difficult for an investor to understand the parameters
or dynamics of economy. This is the reason which makes awareness about the Stock market
system important so as to build a better understanding of its functioning and to inculcate a
healthy habit of investments among prospective investors. Awareness leads one to be cautious
against the fluctuating factors existing in system and to be well prepared with a viable solution.
Investors’ awareness includes not only the knowledge of various financial products available
in the market but also facilitates decision making, particularly among the less educated as well
as of those committed to long term financial decision. This will help the investors to be well
versed with the different factors and to deal with it accordingly. Many factors consist in Stock
market that influences its working and the changing trends. Such as capital, risk factors,
financial literacy, political environment, economic factors, industrial performance. Few of the
factors such as risk are dynamic in nature and have to be studied thoroughly to predict the
probable outcomes in future. But it is financial literacy which acts as the foundation based on
which a prospective investor starts building interest towards aspects of trading and investments.
It is the prime step based on which the investor is able to know the vast options available to
him/her for making investments as well as helps to know the techniques one can adopt for
optimum utilization of funds. Financial literacy is the component, the foundation based on
which the likeliness to invest in stock market increases especially among students. In light of
this, few of the aspects are discussed briefly that contributes in enhancing the awareness level
of investors and enhances their investment skills.
4.1.1 Financial literacy
It is about being familiar with and understanding financial market products and terms,
especially rewards and risks in order to make informed choices. According to
Investopedia.com, “Financial literacy is the education and understanding of various financial
areas including topics related to managing personal finance, money and investing.” Financial
literacy involves skills, rather than just knowledge. It depends on the ability to work with
numbers. Ignorance of financial matters or financial literacy negatively hampers stock market
participation, even for those people who have wealth and education. Today, an investor has
vast investment alternatives, moreover they have an option to invest their limited funds to
diversified financial products. In this context there could be such situations when due to lack
of financial knowledge about alternatives, investor may choose unsuitable stock option and
may affect their financial outcome. This makes financial literacy an important pillar which
helps the investor to equip fundamental knowledge and skills to evaluate their alternatives and
to study their probable economic consequences. This is the preliminary stage in which an
investor must equip knowledge about financial products and their financial repercussions so as
to invest wisely in market. It also creates an impact on the risk tolerance capacity of an
individual and investment decision making. Financial literacy leads one to gain more
information about diversification, interest rates, inflation and many other economic indicators
as well.
1.4 Research Methodology
It includes the strategies used in collecting and analyzing the data to accomplish the research
objectives and to test the hypothesis. It is a systematic plan to conduct the study. The study is
descriptive in nature. Quantitative methods are used to conduct research which aims to classify
features and establish statistical models to test hypothesis and explain observations. In the study
both primary and secondary data has been used.
Primary Data: It is the first-hand data which is collected for the purpose of research.
Instruments used in this research are:


Structured Questionnaire
Observations
Secondary Data: It is the data that has already been collected and is readily available in market
from other sources. The following study is descriptive in nature. The sources of data used are
journals, articles, research papers and other web sources.
Chapter 2
Literature Review
 Insights gained
 Literature gaps noticed
Literature review
It is a comprehensive compilation of the information obtained from the published sources and
unpublished sources of data in the specified area of interest to the researcher. Following
literature has been reviewed:
According to author, investments should be made by a person based on their own instincts and
analysis and should not be dependent on any financial advisor who is compensated by the way
of commission. The publication highlights basically two basic necessities of investment
decision- menu of investment choices available to a market participant and risk-return
relationship. It states higher returns are possible by accepting greater risks. Investing is a matter
of time and not timing and it is never too early to invest for retirement. Also, huge difference
lies between capacity for risk and attitude towards risk. While the latter focuses on
psychological comfort, former focuses on financial survival. The author highlighted factors to
save money so as to focus on fruitful investments options be it in the form of Real Estate, cash,
bonds or common stocks. The kind of investment which is possible for an investor depends
upon the source of income as well as the age and earning power factor. One must keep the
temperament to accept the risks due to volatility in market conditions. Rebalancing’ i.e.
allocating funds into investment alternatives that is based on one’s ideal mix of portfolio is the
right response to save money. Investors who rebalance their portfolios are generously
rewarded. Diversifying portfolios could minimize risk probabilities. One should not be over
confident while investing in market as it is dynamic in nature and fluctuations are frequent,
also they should not keep a herd attitude. The investments should be based on the age factor
and risk tolerance capacity (The Random walk guide to Investing (2011) by Burton G Malkiel).
It is due to changing time and increasing focus towards awareness the investors started adopting
calculative practices while making investments rather than relying on misconceptions that was
very much followed earlier. The author highlights few misconceptions on financial matters so
as to break free the concerned parties from the flawed assumptions. The mutual fund
investments are associated with context of compounding (addition of interest to the interest
already accumulated till then) whereas equity and mutual funds do not result fixed returns,
therefore it does not involve power of compounding. The investors suppose that their money
will grow despite volatility which is not the case in real. Other aspect that was covered was, it
is considered that Systematic Investment plans are safe way to average out costs over time, to
mitigate risks of equity investments and gives a safeguard against market volatility, but the fact
is it does not remove the associated risks altogether. It is meant to inculcate discipline so that
benefits and returns could be gained if it is invested for longer period (7 money myths bustedan article by Shipra Singh in economic times wealth weekly publication for the week (January
21-27))
Equities are high risk securities, as for some it is a no profit game or some equate it with
gambling. It is not acceptable to many as it does not guarantee returns. But the editor highlights
the fact that equity investing is neither of the two situations. It cannot be considered as
gambling as it is a legitimate and democratic way to multiply funds. Investing in equities is
about investing in the future of a business which holds uncertainty. So, one has to accept the
reality that these uncertain factors only make it more exciting, thrilling and worth more to
invest. Also, it is not easy to brilliantly predict the track of a stock in the years to come as it
involves unstable variables, so an efficient opportunity is to be given for making it a successful
investment. It actually requires expertise of many years and intuitive judgments to spot warning
signs. Different market participant would have different parameter to trade and invest. Like a
stock trader sets a price target, short term investor sets a margin of safety and value investor
sets a margin of safety and so on. Other aspect that was being highlighted was it is important
not to stake in single business. Fruitful returns can only be possible if much importance is given
to the composition of portfolio i.e., what it holds and how much rather than placing small bets
in many stocks. Also, equity investment requires deliberations and wide access to information
as partial information would lead to losses. On the basis of the performance of stocks it is
evidently seen that investing in equity mutual fund is efficient way to invest in equities while
index Exchange Traded Funds (ETF) is both efficient and cheap (Why you must invest in
Equities- an article by Uma Shashikant (chairperson, center for investment education and
learning) in economic times wealth weekly publication for the week February (25-march)).
Planning in advance, conducting research and alignment of estimates with budgets can help to
deal financial stress. Today Indian investors are educating themselves about the functions of
stock market system. But still a temptation exists to redeem investments in case of market fall.
Although the reality is, one should not react but should respond to market movements. Short
term losses should not be the prime concern whereas time horizon has to be looked upon. To
manage financial strain, it is important to study company fundamentals and to see that market
is stable. SIP’s is a viable investment option to invest for long term (Financial stress- an article
by Riju Mehta in economic times wealth weekly publication for the week (Feb4-10 2019)).
According to author, investing in Stock market leads to wealth creation. Wealth creation is
result of maximization of returns while minimizing volatility and risks associated with the
investments. So, the right formula to invest in Stock market is having right information, to have
a feasible plan and to make good choices. The golden principles to be followed by a person are
budget to save, save and invest regularly, invest for a long term, control debt. Wealth creation
should be seen as a long-term proposition and this could only be possible if adequate
diversification among asset classes is made. Keystones of investing were highlighted as:
(i)
(ii)
Power of Compounding-Income gradually leads to higher absolute returns each year,
Long term investing is second keystone which helps to tide away short-term market
volatilities, especially in high-risk high returns assets.
This is possible through Systematic investing which reduces the chance of making an
investment wrong at times. But this widely requires discipline in order to increase the corpus
and the habit of investing consistently. Focusing upon the aspect of good investment
alternative, Equity investment is all about growth. It is important to choose right company
which offers wide growth and profitable opportunities. Parameters to consider while studying
a company are: Promoters, Industry outlook, Business plans, Financial, Risk factors, Pricing
and listing. IPO investments should be done only if one has the aptitude and information to
take rigid decisions. Moreover, dividend earned on shares through an IPO is tax free. It is
recommended that one should hold around 15-20 stocks. Tax is incidental to investment
decisions and not the objective of making investment. Mutual funds is also such viable option
for investors as these are such investment vehicles that are managed by professional fund
managers who regulates and offers to investors to analyze and evaluate track records. Apart
from keeping an update about the investment alternatives, technical analysis is one of the
important factors to survive in Stock market as it helps to track movement of stocks and share
trends. So, a combination of all these factors makes Wealth creation possible which is based
on life cycle and that is being defined through an individual’s financial status and needs.
(Everything you wanted to know about Investing by Deepa Venkatraghvan)
It can be a smart strategy to invest stocks in underperforming industries due to the factor of
changing external environmental aspects and dynamic trends. It is expected that a growing
trend can be seen in a struggling sector since high risks is involved in it which implies high
returns. But this could be suitable only for those investors who intend to keep the investments
tied up at least for 5 years, since industry turnaround takes time. But those underperforming
sectors should be avoided that are not likely to turn around in near term. A clear example of
this is Telecom sector where cut throat competition exists and the issues are not such that are
going to end soon. So, it is better to avoid teleservices stocks. Also, Price Earnings ratio (PE)
which investors very much rely on works only, when it is evaluated for well performing sectors.
It can mislead in case of stocks from troubled sectors. For example, despite of 57% fall in stock
price, PE ratio of TATA Motors rose to 110 because of bigger fall in earnings. However, sectors
such as textiles, metals, infrastructure, are such sectors that might be currently underperforming
but has a prospect to grow in market, has potential for high opportunities and of stable cash
flows. But futuristic approach is what expected from investors to select stocks (Select stocks
from troubled sectors can be winners- an article by Narendra Nathan in Economic Times
wealth weekly publication (February (4-10 2018).
DEMAT account has facilitated investors with smooth flow of securities and funds. But
instances of fraud have focused upon the fact that investors have to be more cautious while
dealing with same. Even though SEBI has standardized the norms for Power of Attorney (POA)
agreements, where broker’s authority has been limited to transfer of securities and funds for
the purpose of settlement and they cannot transfer securities for off market trades and execute
trades in client’s name without written consent. Still the case of forgery exists as in the case of
Dalmia Bharat, where the broker forged the signature of the company’s authorized signatory
to transfer units. Loopholes still exists in electronic system so investors need to be vigilant and
should keep a tab on the movement of share units. Investors must make sure to update the
mobile no. and email Id associated with DEMAT account and depository (CDSL and NDSL),
only then it would be possible to check SMS and email statements sent by depositories for
every transaction in DEMAT account. Holding statements which is issued by broker every
month should be verified. In case of any fraud or inaction by brokers, timely complaints should
be registered with depository. Investors should avoid keeping excess money in broking account
and transfer money from savings account only at the time of purchase. Also, investors should
avoid keeping any signed delivery instruction slip with broker for offline trades. These steps
would lead to more awareness on part of investors in handling their securities (DEMAT account
is safe, but still investor needs to be vigilant- an article by Sanket Dhanorkar in Economic
Times wealth weekly publication (March (11-19 2019)).
According to the author there are four ways to approach equity investing. First is, regardless of
the established source, one should never be dependent upon the stock advices given by others
and should rely on the gut instinct of oneself. Before investing, deep research of company is
required to do thorough analysis even if there is no financial background of the investor. It is
possible by studying the financial statements of the corporations which help to assess the
general functioning of stocks. Second rule is to apply parameters while opting certain
securities. Such as market capitalization, dividend yield, debt accumulation, diversification are
some of the factors that has to be kept in mind and after then combination of stocks has to be
chosen that fits the investment cycle. Thirdly one should not always be relying on stocks that
are generating greater strong returns at present as there could be situation when the growth
trend may get disturb in the near future. So futuristic approach should be kept and long-term
intentions to invest should be studied before investing. Lastly, cyclical stocks which are subject
to changes in business cycle should be avoided in case of long-term investment plans as they
tend to suffer losses in case cycle reverse (Four rules of investing: Things to remember to avoid
losses- an article by Rahul Jain dated (6th April 2019) in the online portal MoneyControl.com)
The author highlighted the factors that are necessary for a viable portfolio construction:
Needs and circumstances of investor should be clear, Identification of appropriate asset class
and sectors. Assessment of expected behavior of portfolio over a given period of time. Under
this, for the suggested portfolio, the level of returns and the level of risks expected from each
individual investment made within portfolio is assessed and defined. The return and risk
relationship are main constituent of portfolio. It is to maximize investment return while
minimizing investment risks. For example, if a young investor is interested in pension plans,
then that would be investment vehicle and asset can be equity based, fixed interest investment,
cash etc. Implementation of the rules and making investments in different portfolios. Regular
review of portfolio and their performance against initial targets and assumptions. It also
highlighted that equities are considered as relatively high volatile alternative than any other
option and suitable for investors that have high acceptance or tolerance to risks. Reasonable
consistent dividend yields make equities integral of all structured portfolios. Thus, it can be
said that valuation of the portfolio is affected by many factors: Interest risks, Currency
fluctuations, Company profile developments, Diversification of stocks (risks reduce when
investments spread across different sectors and industries) (How to develop an Investment
Portfolio (2008) by Keith Popplewell).
According to author one should not invest in Stock market unless a clear perspective is formed
by investor. The aim should not be general but rather focus should be on investing in particular
company. Focus should be laid on where stock may go rather than where it has been. If it is not
going up faster, sell it and buy the alternative. One may always look for growing trend stock.
So, in light of this aspect an acronym known as GARP- Growth at reasonable price has been
formulated. According to this approach, investor is looking for undervalued growth stock, i.e.,
cheap growth stocks. Another aspect is-Momentum which means identifying company that has
above average trends in terms of earning acceleration in near future (Beyond Wall Street, Art
of investing (1998) by S.L Mintz, DamaDalkin, Thomas Willison)
Insights gained
The objectives of investments should be very clear, based on that only the time period of
investment and the type of asset to be invested is identified. Self-assessment and analysis of
investment plans according to one’s own risk bearing capacity especially in case of students is
vital to opt the most suitable portfolio mix. Market conditions updates investors about new
investment alternatives and helps to diversify limited funds so as to earn higher returns. Higher
returns is possible if futuristic approach is intended by investor i.e. long term investment plans.
Investor should not get affected by short term fluctuations and withdraw stocks due to interval
volatilities. Exchange traded funds (ETF) is an efficient way of investments as it is convenient
and cheap form of investment. Mutual funds are considered as one of the sought-after
investment options due to involvement of fund management professionals and higher returns.
But it does not imply that they do not result negative returns, one should be patient while
investing in market irrespective of market movements. Investments in stocks of
underperforming sectors can also yield fruitful result, if growth prospects exist. The trends have
to be analyzed of different sectors using technical analysis.
Literature Gaps Noticed
Scope of the research study is Commerce students of Pune. However, while reviewing of
literature, it was observed there were no research studies based on Commerce students’
perception towards Stock market participation and their awareness level towards different stock
alternatives available in market. This acted as a gap to assess their level of interest, level of
literacy in Stock market and the probable hindrances caused to them while making investments
in securities.