APPROACH OF YOUNGSTER WHETHER AS A

YOUNGSTER OR AS A TRADER

A PROJECT SUBMITTED TO

University of Mumbai for partial completion

Of the degree of

Bachelor in Commerce (Accounting and finance)

Under the faculty of Commerce
BY
Shivam Vinodkumar Vishwakarma
Under the guidance of

CHAITALI GAONKAR

VIVEKANANDA EDUCATION SOCIETY OF ARTS, SCIENCE

AND COMMERCE, (AUTONOMOUS)
SINDHI SOCIETY, CHEMBUR, MUMBAI-71

APRIL, 2024
 Vivekananda Education Society of Arts, Science and
Commerce, (Autonomous)

Sindhi Society, Chembur, Mumbai-71 CERTIFICATE

CERTIFICATE

This is to certify that Mr. Shivam Vinodkumar Vishwakarma has worked

and duly completed his project work for the degree of Bachelor in
Commerce (Accounting and Finance- Sem VI) during the academic year
2023-24 under the faculty of commerce and project is titled, approach of
youngster whether as a youngster or as a trader under the guidance of Miss
Chaitali Gaonkar

This to further certify that entire work has been done by the learner and that no
part of it has been submitted previously for any degree or Diploma of any
University. It is his own work and facts reported by her personal findings and
Investigation.

Course Coordinator Principal

Project Guide/Internal Examiner External Examiner

 DECLARATION

I the undersigned Mr. Shivam Vinodkumar Vishwakarma

hereby declare that the work embodied in the project titled “ ,
approach of youngster whether as a youngster or as a trader ” forms my

own contribution to the research work carried out under the

guidance of Miss Chaitali Gaonkar is a result of my own research
and has not been previously submitted to any other degree or
Diploma to this or any University.

Wherever reference has been made to previous works of others, it

has been clearly indicated as such and included in the
Bibliography.

I, hereby further declare that any information of this document has

been obtained and presented in accordance with the academic rules
and ethical conduct.

Shivam Vishwakarma
Roll no. 159

Certified by
MISS CHAITALI GAONKAR
 ACKNOWLEDGMENT

I would like to acknowledge the following as being idealistic

channels and Fresh dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for

giving me Chance to do this project.

I would like to thank my Principal Dr. Anita Kanwar for

providing the Necessary facilities required for completion of this
project.

I take this opportunity to thank our in charge Coordinator Dr.Anu

Bansal for her moral support and guidance.

I would also like to express my sincere gratitude towards my

project guide Miss. Chaitali Gaonkar whose guidance and acre
made the project Successful.

I would like to thank my college library, for having provided

various Reference books and magazines related to my project.

Lastly, I would like to thank each and every person who directly
or indirectly helped me in the completion of the project especially
my Parents and Peers Who supported me throughout my project.
 INDEX

CHAPTERS TITLE PAGE NO.

1 INTRODUCTION 1-32

1.1 Introduction to Stock Market 1

1.2 List of Stock Exchange in India 1-5

1.3 What is Trading? 5-8

1.4 Types of Trading 8-10

1.5 What is an Investment? 10-11
1.6 Objective of Investment 11-13

1.7 Difference Investment options available? 21-23

1.8 What is Risk Management? 23-26

1.9 What is Risk/Reward Ratio? 26-28
1.10 What is Money Management? 28-29
1.11 Different investment strategies 29-30
2 REVIEW OF LITERATURE 33-39
3 RESEARCH METHODOLOGY 40-43
3.1 Meaning 40
3.2 Objective 40-41
3.3 Scope 41-43
DATA ANALYSIS AND
4
INTERPRETATON
44-88

4.1 Meaning 44
5 FINDINGS AND CONCLUSION 89-90
5.1 Findings 89
5.2 Conclusion 90
 LIST OF TABLES

TABLE NO. TABLE NAME PAGE NO.

1 Difference between
Investment and Trading 13-16

2 Components of a Portfolio 76-77

 CHAPTER 1: INTRODUCTION

1.1 INTRODUCTION TO STOCK MARKET

The approach of a youngster, whether navigating the challenges of youth or

stepping into the dynamic world of trading, is marked by a unique set of
characteristics and attitudes. As individuals embark on their journey, the
intersectionality of youthfulness and the complexities of financial market
shape their outlook and decision-making processes. In the exploration, we
delve into the distinctive approaches of youngsters, first in a broader context,
and then specifically within the realm of trading. From open-mindedness and
risk-taking in the broader sense of youth and strategies of risk management
and adaptability required in trading, the dual lenses off insights into these
approach

Stock market, equity market, or share market is the aggregation of buyers and
sellers of stock (also called shares), which represent ownership claims on
businesses; these may include securities listed on a public stock exchange as
well as stock that is only traded privately, such as shares of private companies
that are sold to investors through equity crowdfunding platforms. Investments
are usually made with an investment strategy in mind.

Indian stock market is one of the oldest and most robust markets among
emerging economics. With the rapid improvement in the exchange
infrastructure and better investor protection by the market regulator (SEBI),
the trade volume is on the rise. The technological advancement such as trading
via mobile apps, the traders and trade volume has shot up recently. In the
regard, National Stock Exchange (NSE) and Bombay Stock Exchange (BSE)
are well- known exchanges in the country. But beyond these two, India has
four other permanent exchanges. This takes the totally to a total of six
exchanges.

1.2 List of Stock Exchanges in India

A Stock exchange is a place or platform which hosts a market where buyers

and sellers come together to trade for specific hours during business days. The
trade could be stocks, commodities or even currencies. As per SEBI’s data (as
on January 2020), there are about nine exchanges in India, but only a few are
1
active and permanent.

2
1. Bombay Stock Exchange (BSE)

BSE is the oldest stock exchange in Asia. It is the first exchange as well. It
was established in 1875 and was formerly known by the name of – The Native
share and Stock Broker Association.

BSE is located at Dalal Street, Mumbai and is one of the two large stock
exchanges in the country. It was founded by Mr. Premchand Roychand,
famously known as the Cotton King, the Bullion King or the Big Bull.

But the story of BSE starts back in the 1850s when 22 stockbroker would
gather under banyan trees in front of Mumbai’s Town Hall. The group
eventually moved to Dalal Street in the year 1874.

In 1986, Sensex was introduced as the equity index to provide a base for
identifying the 30 trading companies of the exchange in more than 10 sectors.

Apart from Sensex, other important indices of BSE include BSE 100, BSE
200, BSE 500, BSE MIDCAP, BSE SMLCAP, BSE PSU, BSE Auto, BSE
Pharma,
BSE FMCG, and BSE Metal.

It ranks amongst the 10 most valued exchanges globally. BSE also came out
with an IPO and is listed in NSE.

Further, BSE not only offers trading in equities but also in derivatives
instruments, including futures and options.

In recent years, it has expanded its product base and offers commodities
derivatives too. Commodities include gold, silver, almond, crude oil, steel and
cotton.

2. National Stock Exchange (NSE)

While NSE is young when compared to BSE, it is one of the largest exchanges
in the country. NSE came into the picture in the year 1992 with Vikram
Limaye as its CEO.

It was recognised as a stock exchange by SEBI in 1993 and commenced

operations in 1994. It started with the launch of the wholesale debt market,
followed shortly after by the launch of the cash market segment.

3
NSE introduced the advanced electronic trading system, which removed the
paper-based settlement from trading. It offered an easy trading and emerged as
a competitor for BSE.

In the year 1995-96, NSE launched the NIFTY 50 Index and commenced
trading and settlement in dematerialized securities. Nifty lists out the top 50
companies which traded on the NSE stock exchange market.

Apart from Nifty, other key indices of NSE include Nifty Next50, Nifty500,
Nifty Midcap150, Nifty Smallcap250 and Nifty MidSmallcap400.

National Securities Depository Limited (NSDL) was formed to provide

depository services to investors.

NSDL allows investors and traders to securely hold and transfer their stocks
electronically

Soon after, NSE expanded its product offerings as well. Among other services
such as clearing and settlement, it not only offers equity and equity derivatives
instruments but also offers commodities and currency derivatives

3. Multi-Commodity Exchange (MCX)

MCX is one of the largest commodity exchanges in the country. As the name
suggest, this exchange is only for trading in commodities, including agri and
non-agri products. These include cotton, crude palm oil, rubber, and
cardamom. Non-agri includes base metals (lead, aluminium, nickel, zinc and
copper), bullion (gold and silver) and energy (crude oil and natural gas).

It is the first listed (both BSE and NSE) commodity exchange in India and
started its operations in 2003. It is based out of Mumbai.

While it offers both futures and options contracts. These include MCX
ENRGDEX (energy index), MCX METLDEX (metal index) and BULLDEX
(bullion index)

Though these are predominantly used by hedgers, traders, businessmen and

even by companies, the volumes are growing. But the commodities market is
yet to make a mark like the equities market.

4
4. National Commodity and Derivates Exchange (NCDEX):-

NCDEX is another largest commodity exchanges in the country that started its
operations around the same time as MCX.

NCDCEX, unlike MCX, only offers agri products for trading. These include
cereals and pulses (including Chana, Barley, and Moong), Oil and Oil seeds
(including Castor seeds, Soybean, Mustard seed and crude palm oil), Fibres
(including Kapas and cotton), and Spices (including Turmeric and Coriander).

In recent years, NCDEX also started to offer index products such as AGRIDEX.

5. Indian Commodity Exchange (ICEX)

CEX is a commodity derivative exchange in India. Registered with SEBI, it is

a permanent exchange and the only exchange that offers derivatives trading in
diamond contracts

While it was incorporated in 2009, its trading was suspended in 2014. It

started its operations again in 2017.

In addition to diamond contracts, ICEX also offers agri derivatives, including

spices, oilseeds, plantations, and cereals.

But ICEX is mired with controversies and allegations and is expected to come
out of the situation soon.

6. Calcutta Stock Exchange (CSE):-

CSE, which started under Neem Tree in the 1830s has come a long way now.
It is among the oldest stock exchange and was once considered among the
largest stock exchanges in the country.

It was incorporated in 1908 and had been occupying building 7 in Lyons

Range, Calcutta.

In the year 1980, it was granted permanent recognition by the Government of

India under the relevant provisions of the Securities Contracts (Regulation)
Act, 1956.

CSE also had an index called CSE-40, similar to Nifty50 and Sensex.

5
CSE was once a competitor to both NSE and BSE. While it is a permanent
(licensed) stock exchange registered with SEBI, it now faces an uncertain
future. Its trading had been suspended for nearly nine years by SEBI due to
non- compliance with certain norms. Though nearly 20 regional stock
exchanges have voluntarily exited the business, CSE continues to fight its
battle.

1.3 What is trading?

Trading is the buying and selling of securities, such as stocks, bonds,

currencies, commodities, and derivatives, with the goal of making a profit.
Traders can include individuals, institutional investors, and financial
institutions

Advantages of trading:-

1. Relatively good returns:-

One of the advantages of trading is that a disciplined trader with analytical

skills has the potential to earn a relatively good return and that too in a short
time. This makes the profession lucrative, especially if you are able to manage
the risk efficiently. Stock trading becomes even more attractive with low
interest rates and a high inflation regime

2. High Liquidity:-

Stock markets provide liquidity which is unparalleled when compared to other

asset classes, such as real estate. In other words, getting out of the market is
easy and without much impact cost. This is also one of the advantages of
trading as it allows you to put surplus funds to use, and it is more profitable
than keeping the money lying in savings accounts.

3. Regulatory Surveillance:-

Thanks to the regulatory reforms in recent years, one of the main

disadvantages of trading related to frequent payment defaults by brokers, is
now a thing of the past. The strict and alert surveillance system of the
Securities and Exchange Board of India (SEBI) has thwarted the possibility of
any major scams in the system. Margin and net worth requirements minimize
the risk of default at the brokers end. The recent rules that have reduced

6
overall intraday margins in the Futures and Options segment, although they
may look as hurting traders in the

7
short term, are good long-term measures to reduce overall risk and the
possibility of financial instability in the system by way of trader bankruptcies
or trader firm/broker defaults.

4. High transparency:-

Online trading, as compare to the ring-based system, has introduced

transparency in trading and pricing. In this system, you can place ‘buy’ and
‘sell’ orders directly (without the intervention of your brokers’
representatives), decide price limits, put a stop lass (and keep changing it),
know the status of the order and stay informed about its execution
immediately. Online trading has also added to the advantages of trading
reducing costs for both traders and investors.

5. Easy access to back-end accounts:-

Online trading, also ensures that you access to your back-end accounts all the,
thus enabling you stock and cash position. Further, the online system ensures
you also have ready access to all your previous investment statements.

6. No conflict of interest:-

Watertight compartmentalization of proprietary trades (i.e. trading for self in

own account) and client transactions also protect innocent clients from any
wrongdoings by the brokers. SEBI has clearly laid out procedures to
effectively prevent any conflict of interest between customer trading and
proprietary trading activities.

Disadvantages of trading:

1. Highly volatile:-

Stock markets are volatile and highly dynamic. We live in a technologically-

driven world that is constantly shrinking. An event in any corner of the world
may impact the price of the stock you are holding. Also, stock prices go up
and down multiple times within a single trading day. Volatility touches its
peak on some days with important events like the budget, elections and
announcement such as GDP numbers and results by leading companies.

2. Highly risky:-

8
Volatility and the unpredictability of the market make it highly risky,
especially for small-time traders who don’t have access to high-quality
research. If enough precautions are nor taken at the appropriate moment, stock
trading can wipe out your entire capital; in no time.

3. Malpractices:-

Despite the fact that the regulator has intensified vigilance, some still take
advantages of loopholes in the system. As a result, some traders are at an
advantages as they are privy to information such as purchases by parties close
to management, expected company results, auction data released by the stock
exchanges, etc.

4. High volume, low margin:-

Despite the fact that stock trading can with low capital and no educational
qualification, stock trading is a high volume-low margin profession, due to
which the odds usually stacked the trader

5. Taxation:

The taxation framework for trading in India can sometimes not be clear,
leaving the assessed at the mercy of income tax officers. The law is not clear
yet whether the results of frequent short-term buying and selling should be
treated as capital gain/loss or as business income. This often leads to
harassment of traders at the time of assessment.

6. Impulsive decisions:

The ease of opening accounts with brokers and the need for a small initial
investment many times tempt newcomers to act on impulse. Fueled by a lack
of knowledge and unable to differentiate between rumors and facts, they end
up making huge losses. Though the profession itself is not a wrongdoer, in this
case, such situations arise mainly due to a lack of investor awareness
programmers.

9
1.4 Types of Trading:

1. Intraday

 Day Trading:-

In this type of trading in stock market, all trades are commissioned and closed
within one trading session, and the trader doesn’t keep any open position at
the end of the day. In fact, day trading was one of the most popular ways
people kept themselves busy during the Covid-19 induced lockdowns.
Among the different types of trading, professional day traders are known to
take large positions, often taking advantage of leveraged margins. They take
home significant returns as small price movements on large positions can
result in big gains.

A word of caution: You need to guard against overtrading, as the slightest of

price movements in the opposite direction can cause huge losses. You should
also be well informed about the happenings in the market as those events will
have a direct impact on the stock prices. You should also guard against the
threat of psychological addiction to trading.

In day trading, a trader will not be able to take advantage of gap-up and gap-
down openings on the next trading day. At the same time, he will be saved
from the adverse impact of overnight events on the morning stock prices.
However, what may work against a day trader is the frequent costs of trading,
which the trader must take into account while evaluating intraday trading as a
business.

 Scalping:-

Scalping is a type of trading in which traders buy and sell in very short periods
of time with the aim of making a small profit. The time gap of each trade may
range between a few seconds and a few minutes. Like day traders, scalpers
also don’t take overnight positions.

One of the most common methods of scalping is buying at the Bid price and
selling at the Ask price and making a quick profit out of the difference
between the Bid/Ask prices. Scalpers rely more on technical analysis than
fundamentals. They hold positions only for a short duration, and as such, the
chances of suffering huge losses from wide and sharp fluctuations in prices are
remote
10
Since the amount of gain in each trade is small, a scalper will have to do
multiple trades in a day to earn sizeable profits. Also, as this style involves
quick buying and selling, this is usually suitable for traders with small capital.
Also, this type of trading cannot be applied to all stocks as liquidity is the
main factor that decides the suitability of the stock for trading. Highly illiquid
stocks are not ideal for scalping, further, scalpers thrive in a stable market

2. Multi-session

 Swing Trading:-

Unlike a day trader, a swing trader holds on to their position for more than a
day – several days or even weeks - as the objective here is to capture short to
medium-term (spanning some weeks) gains in a stock. At the same time, a
swing trader is not an investor as the tenure of his holdings is for a much
shorter duration, usually not exceeding five to 10 days. If a short-term investor
aims to gain, say, 25% in five to six months, a swing trader looks for
maximum profit in the shortest possible time, say 3-5% in a few hours.

A swing trader aims to make a profit either by buying stocks or short-selling

them to capitalise on the upward and downward ‘swings’ in the price of a
security. The trader seeks help from various types of indicators to take
positions. The most commonly used indicators are moving average (short-term
MA crossing over long-term MA), volume (to assess the strength of ongoing
trend), Relative Strength Index (to find out overbought and oversold zones),
stochastic oscillator and ease of movement indicator.

 Position Trading:-

This is a leisured class trading in which a trader holds onto his position for
several weeks or longer. A position trader takes a position after the stock has
established itself as a trend and exits the position when the trend breaks.

Position trading is different from swing trading in the sense that the amount of
time involved between buying and selling is much longer in the former.

11
1.5 What Is an Investment?

An investment is an asset or item acquired with the goal of generating income

or appreciation. Appreciation refers to an increase in the value of an asset over
time. When an individual purchases a good as an investment, the intent is not
to consume the good but rather to use it in the future to create wealth.

An investment always concerns the outlay of some resource today-time, effort,

money, or an asset-in hopes of a greater payoff in the future than what was
originally put in. For example, an investor may purchase a monetary asset now
with the idea that the asset will provide income in the future or will later be
sold as a higher price for a profit

Investing in stocks is a way to make your money grow over time. By regularly
putting money aside to invest, you can see its value multiply over the long
term. That’s why it’s important to begin as soon as you have the money to do
so-the longer your time horizon

An investment is essentially an asset that is created with the intention of

allowing money to grow. The wealth created can be used for a variety of
objectives such as meeting shortages in income, saving up for retirement, or
fulfilling certain specific obligation such as repayment of loans, payment of
tuition fees, or purchase of other assets.

Understanding the investment definition is crucial as sometimes, it can be

difficult to choose the right instruments to fulfil your financial goals. Knowing
the investment meaning in your particular financial situation will allow you to
make the right choices.

Investment may generate income for you in two way. One if you invest in a
saleable asset, you may earn income by way of profit. Second, if Investment is
made in a return generating plan, then you will earn an income via
accumulation of gains.

Investment in stock can help the investor to save its future by investing in
stocks but, as investment it come with risk so the investor must understand the
fundament analysis of company before investing.

12
1.6 Objectives of Investment:

Every kind of investment comes with its own set of features that translate into
your goals

1. Safety:-

This is one of those goals that take precedence in everything you do. From
driving to earning money, safety is always in the picture somewhere.
Likewise, you want your hard-earned money to be safe when investing it. This
is especially true if you are a conservative investor who wants their returns on
time and is not willing to take risks.

Although no investment is entirely safe, some can get close. For instances,
government-issued bonds remain a secure investment with less risks. A
government does not collapse now and the. So, you don’t have to worry about
any loss to your investment. In addition to these, corporate bonds and money
market instruments like treasury bills or certificates of deposit are considered
safe.

2. Regular Income:-

Certain investors seek opportunities that allow them to generate an income

supplement for years to come. Retirees are a great example of this, as they
look for assets that can get them a pay check every month.

If income is one of the elements of investment that you are looking for, then
there are several types of assets that mirror the same. Some of them, like
government bonds and money market instruments, are mentioned above.
Others are stocks that hold a good records of dividend payments.

3. Capital Gains:-

This feature of investment is coupled with wealth creation. Safe returns are
one thing; you also want your money to grow. Typically, capital gains occur
when you sell an asset. For instance, you sell shares of a company or gold. As
an investor, you can achieve this in three ways:

By building an investment portfolio and letting it grow over a period of

time

13
 By buying stocks to make short and long-term gains on them

By trading stocks and through speculations

4. Liquidity:-

Having sufficient funds to provide for emergencies is a key aspect of

investment. The ability to convert an asset into cash by selling or trading them
instantly with little to no risk is called liquidity.

5. Minimising Taxes:-

Most people also invest to save on taxes. Several kinds of investment can help
you lessen your income tax burden. Life insurance plans like ULIPs, and
retirement and term insurance policies are popular option apart from tax-
saving mutual funds and national pension funds. Most of these are eligible for
deductions, which help you minimise your taxes.

6. Preservation of capital:-

Investors prioritize the stability and safety of their investment, opting for low-
risk assets such as government bonds, high-quality corporate bonds, or money
market funds. Preservation of capital is often emphasized by conservative
investors with a shorter time horizon or lower risk tolerance.

7. Compound growth:-

Time is a powerful factor when it comes to investing. The earlier one starts
investing, the more time their money has to grow through the power of
compounding. Compound growth allows both the initial investment and the
returns on that investment to generate additional returns over time.

8. Financial Independence:-

Investing provides an opportunity for young individuals to work towards

financial independence. By building a diversified investment portfolio, they
can

14
create additional streams of income and potentially reduce their reliance on
traditional employment for financial support.

In summary, investment at a young age can have a profound impact on an

individual’s financial future, offering the potential for wealth accumulation,
financial independence, and the development of important life skills. It’s
crucial for young individuals to start early, stay informed, and approach
investing with a long-term perspective

Table 1: Difference between Investment and Trading

1. Risk Involved:-

INVESTMENT TRADING

 Risk involved is lesser  Risk involved is high

as the stocks are held as the traders use
for a longer period and leverage that can
it rides out various impact the invested
market ups and downs capital even with
slight movements
in prices

 Market Volatility in the  Trading involves

short-term has little capitalising on small
impact on investments price movements
as investors are ready and it can cause
to hold on to it for long high losses if the
periods price starts to move
in the opposite
direction and the
trader has not used
a stop-loss order

15
2. Capital Growth:-

INVESTMENT TRADING

 Investment involves  Traders aim to make

growing your capital quick profits

slowly and gradually

by holding on to them.

 Traders grow their

 Investors grow their capital by constantly
capital with time but looking for the right
also get to enjoy the opportunities to
other benefits such as execute their trades
dividends and prepare
strategies for a
successful trading
journey

3. Period of Investment:-

INVESTMENT TRADING

 The period of  Trading is usually for

investment here are short-term, and it
usually long and it is involves capitalizing
very similar to running on periodic price
a marathon where you changes
must be patient to
achieve your target

16
  Investors may hold on  Traders embrace the
to their investments for risk of market
even decades and volatility and like to
would want to ride-out capitalise on price
patiently various phases fluctuations even
in the market during volatile
markets. Traders may
sell a stock in a
couple of hours or
they may wait for
weeks as well, if
required.

4. Style of Analysis:-

INVESTMENT TRADING

 Investing involves  Trading requires

fundamental analysis technical analysis

 Fundamental analysis  Trading requires

requires checking the analysing charts,
company financials, identifying patterns
balance sheets, emerging from price
important ratios and movements, using
most importantly, their indicators to
potential to grow with generate buying and
time selling signals and
keeping the daily
market
sentiment in check

17
As a step toward Digital transaction, the share market has been considered an
importance place in financing the transaction in the corporate sector. Share
Market helps in mobilizing funds from investment banks to investing
companies. It’s a Digital Platform where the sale and purchase of shared of
different companies listed in BSE or NSE are taken place. The transaction of
shares in the Share Market is basically done by the youngster in comparison to
old age.

Since the pandemic COVID 19, it is found that brokerage like Upstox,
Angelone. And Zerodha’s customer base keep on increasing. The brokerage
companies found that around 70% of the new customer under the age of 30
years are opening their Demate Account for the purpose of investment and
under the age of 30 years are opening their Demate Account for the purpose pf
investment and SIP in Mutual Fund

The customer base of BSE doubled to around 80 million between the financial
year 2020 and 2021. Around 81% of the survey youths are investing their
surplus in the share market via mutual funds.

Investing in the stock market is rightly called as a financial adventure as it

requires sufficient financial knowledge, investment skills, ability and
willingness to take up risks. Even if there are subjective differences in the
stock market investing process, the unanimously agreed aim is to earn
maximum returns at minimum risk. The need for multiple returns at minimum
risk. The need for multiple sources of income has turned the young population
to look at stock market as an avenue for earning supplementary income. When
it comes to money and investing. It is not always as rational as people think.
Mainstream financial theory relies on the assumption that market participants
are rational actors, who are self-interested utility maximizers who never make
mistakes. Behavioural finance has emerged to challenge the assumption of
rational actor theory as it applies to markets, investments, and other financial
matters. Investment is the dedication of an asset to attain an increase in value
over a period of time. Investment requires a sacrifice of some present asset,
such as time, money, or effort. In finance, the purpose of investing is to
generate a return from the invested asset. The return may consist of a gain
(profit) or a loss

18
 realized from the sale of a property or an investment, unrealized capital
appreciation (or depreciation), or investment income such as dividends,
interest, or rental income, or a combination of a capital gain and income. The
return may also include currency gains or losses due to changes in the foreign
currency exchanges rates

Elements influencing investment

Investment is use on capital products-for instance, new machines, workplaces,

new innovation is a segment of Aggregate Demand and furthermore impacts
the capital stock and useful limit of the economy. There are various factors
that have an impact on the investment options among the investor which are
detailed below

Economic
growth

Interest rate Confidence

Factors
affecting
invetment

State of Availability of
technology finance

Chart 1: Elements influencing investment

1. Loan fees(interest rate):-

Investment is financed either out of current investment funds or by getting.
Accordingly investment is firmly impacted by financing costs. Exorbitant loan
fees make it more costly to acquire. Exorbitant loan fees likewise give a
superior pace of get back from keeping cash in the bank. With higher
loan fees,

19
 investment has a higher chance expenses since you miss out the interest
instalments. The negligible productivity of capital expresses that for
investment to be advantageous, it needs to give a higher pace of return than
the loan

2. Financial Development (Economic growth)

Firms contribute to fulfil future need. Assuming interest is falling, firms will
scale back speculations. Assuming monetary possibilities improve; firms will
build speculation as they anticipate that future demand should rise. There is
solid exact proof that speculation is recurrent

3. Inflation:-
In the long haul, inflation rates can impact Investment. High and variable will
in general make vulnerability and disarray, with vulnerabilities over the future
expenses of venture. In case expansion is high and unstable, firms will be
dubious at the last expense of the investments; they may likewise fear high
inflation could prompt monetary vulnerability and future slump. Nations with
a draw-out time of low and stable inflation have regularly experienced higher
paces of speculation.

4. Usefulness/productivity of capital:-
Long haul changes in innovation can impact the engaging of investment. In
the nineteenth century, new innovations for example, Bessemer steel and
further developed steam motors implied firms had a solid motivation to put
resources into this new innovation since it was substantially more effective
than past innovation. In case there is a stoppage in the pace of mechanical
advancement, firms will scale back speculation as there are lower profits from
the investment.

5. Public sector investment:

Most of speculation is driven by the private area. In any case, investment
likewise incorporates public area speculation-government spending on
framework, schools, clinics and transport

A stock market, stock market, or equity market is an aggregation of buyers

and sellers of shares (also called shares) that represent ownership claims to
20
business;

21
They can include securities listed on a public stock exchange as well as stocks
that are only traded privately, such as shares of private companies that are sold
to investors through equity crowdfunding platforms. Investment is usually
made with an investment strategy in mind.

Both “stock market” and “stock exchange” are often used interchangeably,
Traders in the stock market buy or sell shares on one or more of the stock
exchanges that are part of the overall stock market.

Stock market provide a safe and regulated environment where market

participants can confidently trade stocks and other eligible financial
instruments, with zero to low operational risk.

Once new securities have been sold in the primary market, they are traded in
the secondary market where one investor buys shares from another investor at
the prevailing market price or at whatever price both the buyer and seller agree
upon. The secondary market or the stock exchanges are regulated by the
regulatory authority. In India, the secondary and primary markets are
governed by the Security and Exchange Board of India (SEBI)

As a primary market, the stock exchange allows to issue and sell their shares
to the public for the first time through the initial public offering (IPO) process.
This activity helps companies to raise the necessary capital from investors.

The company splits into several shares and sell some of those shares to the
public at a price per share. The Stock market in India has witnessed significant
growth over the years, and its growth can be attributed to several factors. One
of the key factors contributing to the growth of the Indian stock market is the
country’s strong economic fundamentals. India is one of the fastest-growing
economics in the world, with a large and growing middle class and a robust
consumer market. This has attracted significant foreign investment, which has
driven the growth of the stock market. Another factor contributing to the
growth of the Indian stock market is the government's efforts to promote
economic growth and development. The government has implemented several
measures to encourage investment in the stock market, such as tax incentives
for long- term investments and measures to improve corporate governance and
transparency.

22
 In addition to these factors, the growth of the Indian stock market can also be
attributed to the increasing participation of retail investors with an increase of
youth in the stock market. With the rise of digital technology, it has become
easier for young investor to invest in the stock market, and many youngster are
now using online trading platforms to buy and sell shares. Investing in the
stock market can be complex and confusing for those who lack knowledge
about the market’s functioning, investment strategies, and risk management.
This lack of knowledge can lead to uninformed investment decision, which
can negatively impact the investor’s financial well-being, therefore, it is
essential that young investor must have awareness of trading and investing in
stock market. One of most things why one should invest to beat the cost of
inflation. Inflation is nothing but when the value of money drops by which it
means that the money won’t buy you the same amount of the goods which it
used to buy. Financial Products act as an investor safety on the grounds of
their risk appetite and financial status and also the risk and return from the
financial product. As the awareness about the market among the youngster
they are likely to shift to different investment like Mutual Fund, Equity
Market and Commodities.

1.7 Different Investment Options Available which are mainly used by the
young investor:-

1. Mutual Fund-
Mutual fund is a vehicle for mobilizing investor money, investing in various
industries and securities, in line with agreed investment goals, between the
mutual fund and shareholders. In other words, a tiny investor can use
professional wealth management services provided by an asset management to
help investors earn a revenue or build their assets by engaging in the
possibilities available in different securities and market. Mutual funds can
structure a scheme for any type of investment goal. Thus, through its different
systems, the mutual fund structure enables a big corpus of cash from varied
investors to be taped.

2. Equity Market-
An equity market is a market in which, through exchange or over-the-counter
market, shares are issued and traded. Also known as the stock market, it is one

23
 of a market economy’s most important fields because it provides business
access to capital and investors a slice of ownership in a business with the
ability to realize profits based on their future results. Equity is one of the most
dangerous fields. At the same moment, however, this is also a location where
an investor can receive elevated return prices. Investment, on the other side,
requires a long-term strategy that will absorb the fund for a longer moment.
These two paths are connected with multiple advantages as well as hazards,
and it is up to the person to make up his mind.

3. Bank Deposits
Banks offer two types of deposit accounts primarily. These are deposit of
demand such as current/saving account and deposit of term such as fixed or
recurring deposit you become an account holder or a depositor when you open
a deposit account in a bank. Saving accounts are used to satisfy money
demands on-demand on a daily basis. You have a saving bank account, for
instance, with the bank having a cheque book facility. The bank asks you to
keep a minimum Rs.1000 balance .The bank pays you a 4 percent interest per
annum in exchange. You can also use an ATM card to run the saving account.
Banks use ATMs to impose limitations on the frequency and quantity of
withdrawal. The saving account deposit rates continue to change depending on
the revision of policy rates by RBI. Banks give reduced saving account
interest rates relative to term deposits. This is why investors are opting for
term deposit accounts. For a set period of moment, a term deposit is used to
hold cash. For example, you have Rs.10000 fixed deposit with bank for a
period of five years, then bank pays you an interest at an annual rate of 8.5%

4. Post Office Deposits

Post Office provides investors different deposit schemes. Small savings plans
are also known as these. The special feature of these systems is their sovereign
assurance, i.e. the state supports it. Section 80C of the Income Tax Act also
provides tax benefits in some of the post office systems. The interest rate
provided on the schemes is evaluated and set by government authorities every
quarter. Some schemes provided by the department of Post Office are as
Senior Citizen Saving Scheme, PPF, Period Deposit, and Recurring Deposit.

24
5. Gold
Gold is regarded to be one of the most precious investment instruments in
India because it can also be used as an investment and in the form of
jewellery. Not only can one invest in gold by getting it in physical form, but
also Paper Gold can invest in it through Exchange Traded Funds and
Sovereign Gold Funds, Gold Saving Scheme, and now a day’s gold is also
accessible through Phone pay, Gold rush and many other online apps
(maintained by Stock Holding Corporation of India) in Digital Form.

Firstly, the youngster has the access to financial market through online trading
platforms has made it more convenient for young people to participate in
trading and investment activities. They can now trade stocks,
cryptocurrencies, commodities, and other assets with just a few clicks on their
smartphones or computers. Additionally, the proliferation of educational
resources, both online and offline, has played a significant role in educating
and empowering the youth about trading and investment. Numerous websites,
blogs, forums, and social media platforms provide valuable information,
tutorials, and investment strategies, allowing young individuals to learn and
make informed decisions.

Furthermore, the success stories of young investors and traders shared through
social media and other channels have inspired and motivated the youth to
explore trading and investment opportunities. Witnessing their peers achieve
financial independence and generate wealth through disciplined investing has
further fuelled the interest and awareness among the youth.

It’s important to note that while trading and investment offer potential
opportunities for growth, they also come with risks. Proper education,
research, and understanding of market dynamics are crucial to make informed
decisions and mitigate risks associated with trading and investment
As a young trader the awareness about Risk Management, Risk to Reward
ratio, Money Management is also important

25
 1.8 What is Risk Management?

Risk management helps cut down losses. It can also help protect trader’s
accounts from losing all of its money. The risk occurs when traders suffers
losses. If the risk can be managed, traders can open themselves up to making
money in the market.
It is an essential but often overlooked prerequisite to successful active trading,
After all, a trader who has generated substantial profits can lose in just one or
two bad traders without a proper risk management strategy how young trader
can develop the best techniques to curb the risk of the market?

1. Planning Your Trades:-

Successful traders commonly quote the phrase “Plan the trade and trade the
plan.” Just like in war, planning ahead can often mean the difference between
success and failure.

First, make sure your broker is right for frequent trading. Some brokers first,
make sure your broker is right for frequent trading. Some brokers
cater to customers who trade infrequently. They charge high commissions and
don't offer the right analytical tools for active traders.
Stop-loss (S/L) and take-profit (T/P) points represent two key ways in which
traders can plan ahead when trading. Successful traders know what price they
are willing to pay and at what price they are willing to sell. They can then
measure the resulting returns against the probability of the stock hitting their
goals. If the adjusted return is high enough, they execute the trade.

2. Consider the One-Percent Rule:-

A lot of day traders follow what's called the one-percent rule. Basically, this
rule of thumb suggests that you should never put more than 1% of your capital
or your trading account into a single trade. So if you have Rs.100000 your
trading account, your position in any given instrument shouldn’t be more than
Rs.10000

26
3. Setting Stop-Loss and Take-Profit Points:-

A stop-loss point is the price at which a trader will sell a stock and take a loss
on the trade. This often happens when a trade does not pan out the way a
trader hoped. The points are designed to prevent the "it will come back"
mentality and limit losses before they escalate. For example, if a stock breaks
below a key support level, traders often sell as soon as possible.

On the other hand, a take-profit point is the price at which a trader will sell a
stock and take a profit on the trade. This is when the additional upside is
limited given the risks. For example, if a stock is approaching a key resistance
level after a large move upward, traders may want to sell before a period of
consolidation takes place.

How to More Effectively Set Stop-Loss Points:-

Setting stop-loss and take-profits points is often done using technical analysis,
but fundamental analysis can also play a key role in timing. For Example, if a
trader is holding a stock ahead of earnings as excitement builds, they may
want to sell before the news hits the market if expectations have become too
high, regardless of whether the take-profit price has been hit.

Moving averages represent the most popular way to set these points, as they
are easy to calculate and widely tracked by the market. Key moving averages
include the 5-, 9-, 20-, 50-, 100- and 200-day averages. These are best set by
applying them to a stock’s chart and determining whether the stock price has
reacted to them in the past as either a support or resistance level.
Another great way to place stop-loss or take-profit levels is on support or
resistance trend lines. These can be drawn by connecting previous high or
lows that occurred on significant, above-average volume. The key is
determining levels at which the price reacts to the trend lines or moving
averages and, of course, on high volume.

27
4. Calculating Expected Return:-

Setting stop-loss and take-profit points are also necessary to calculate

the expected return. The importance of this calculation cannot be overstated,
as it forces traders to think through their trades and rationalize them. It also
gives them a systematic way to compare various trades and select only the
most profitable ones.
This can be calculated using the following formula:
[(Probability of Gain) x (Take Profit % Gain)] + [(Probability of Loss) x
(Stop- Loss % Loss)]
The result of this calculation is an expected return for the active trader, who
will then measure it against other opportunities to determine which stocks to
trade. The probability of gain or loss can be calculated by using historical
breakouts and breakdowns from the support or resistance levels—or for
experienced traders, by making an educated guess.

5. Diversify and Hedge:-

Making sure you make the most of your trading means never putting all your
eggs in one basket. If you put all your money into one idea, you're setting
yourself up for a big loss. Remember to diversify your investments—across
both industry sector as well as market capitalization and geographic region.
Not only does this help you manage your risk, but it also opens you up to more
opportunities.
You may also find yourself needing to hedge your position. Consider a stock
position when the results are due. You may consider taking the opposite
position through options, which can help protect your position. When trading
activity subsides, you can then unwind the hedge.

6. Downside Put Options:-

If you are approved for options trading, buying a downside put option,
sometimes known as a protective put, can also be used as a hedge to stem
losses from a trade that turns sour. A put option gives you the right, but
not the
28
obligation, to sell the underlying stock at a specified priced at or before the
option expires. Therefore, if you own XYZ stock for Rs.100 and buy the six-
month Rs.80 put for Rs.1.00 per option in premium, then you will be
effectively stopped out from any price drop below Rs.79 (Rs.80 strike minus
the Rs.1 premium paid).

1.9 What is the Risk/Reward Ratio?

The risk/reward ratio marks the prospective reward an investor can earn
for every rupees they risk on an investment. Many investors use risk/reward
ratios to compare the expected returns of an investment with the amount of
risk they must undertake to earn these returns. A lower risk/return ratio is
often preferable as it signals less risk for an equivalent potential gain.

Consider the following example: an investment with a risk-reward ratio

of 1:7 suggests that an investor is willing to risk Rs.1, for the prospect of
earning Rs.7. Alternatively, a risk/reward ratio of 1:3 signals that an investor
should expect to invest RS.1, for the prospect of earning Rs.3 on their
investment.

Traders often use this approach to plan which trades to take, and the ratio
is calculated by dividing the amount a trader stands to lose if the price of an
asset moves in an unexpected direction (the risk) by the amount of profit
the trader expects to have made when the position is closed (the reward).

How the Risk/Reward Ratio Works?

In many cases, market strategists find the ideal risk/reward ratio for their
investment to be approximately 1:3, or three units of expected return for every
one unit of additional risk. Investors can manage risk/reward more through the
use of stop-loss order and derivatives such as put options.

The risk/reward is often used as a measure when trading individual stocks.

The optimal risk/reward ratio differs widely among various trading strategies.
Some trial-and-error methods are usually required to determine which ratio is
best for a given trading strategy, and many investors have a pre-specified
risk/reward ratio for their investment.

29
 Note that the risk/reward ratio can be computed as one’s personal risk
tolerance on an investment, or as the objective calculation of an investment’s
risk/reward profile. In the latter case, expected return is often used in the
denominator and potential loss in the numerator

What Does the Risk/Reward Ratio Tell You?

The risk/reward ratio helps investors manage their risk of losing money on
trades. Even if a trader has some profitable trades, they will lose money over
time if their win rate is below 50%. The risk/reward ratio measures the
difference between a trade entry point to a stop-loss and a sell or take-profit
order. Comparing these two provides the ratio of profit to loss, or reward to
risk.

Investors often use stop-loss orders when trading individual stocks to help
minimize losses and directly manage their investments with a risk/reward
focus. A stop-loss order is a trading trigger placed on a stock that automates
the selling of the stock from a portfolio if the stock reaches a specified low.
Investors can automatically set stop-loss orders through brokerage accounts
and typically do not require exorbitant additional trading costs.

1.10 What is Money Management?

Money management, in the context of trading, basically means implementing

techniques and strategies to limit risk while simultaneously increasing the
reward. To achieve this goal, traders usually tweak the trading position size by
either increasing it or decreasing it.

1. 5 money management strategies for young traders

There are many money management rules in trading that traders can
implement. Let’s take a look at 5 of the most popular ones.

1. The 2% rule:-

According to this money management rule, traders wanting to invest in the

market shouldn’t take a risk of more than 2% of their total account balance for

30
 every trade. This is a very conservative approach that’s perfect for beginners
and traders not wanting to take high risks.

2. Fixed fractional method:-

As per the fixed fractional method, you would have to first buy a stock for a
particular amount of money, say Rs.10000. Once the value of the stock goes
up and reaches Rs.20000, which is double your initial investment, you can
then purchase more shares of the same company. This will help reduce the
amount of risk that you undertake.

3. Fixed ratio method:-

The fixed ratio method is very similar to the fixed fractional method.
According to this, you will have a first purchase a stock makes a particular
pre-set amount of profit, you can then purchase more shares. And then again,
once the stock makes double the pre-set amount of profit, you may then
purchase even more shares. This goes on and on till the time you decide to
stop.

4. Optimal F method:-

The optimal F method relies on your past performance to establish your

position size. All that you have to do is take a look at all the trades that you’ve
made profits on. Then, come up with an average position size. This can be
your baseline position size for all of your future trades.

5. Secure F method:-

The secure F method is one of the most refined money management rules in
trading. An enhanced version of the optimal F method, the secure F method
involves determining the position size that gave you the maximum amount of
returns on all your past trades. Once the position size is determined, it is used
on all future trades

Investment strategies are a set of postulates that help an investor achieve their
investment and financial goals. The strategies are formulated based on the

31
Investor’s financial goals, risk tolerance, and target corpus. They are also
formulated keeping the investor’s short-term goals and long-term goals in
mind.

1.11 Different types of Investment Strategies

There are five different types of investment strategies:-

1. Value Investing:-

In the 1920s, Benjamin Graham developed a new method of investing in

stocks called value investing, which was then made famous by Warren Buffet.
To apply this strategy, one has to have a deep understanding of the stock
market, as intensive research needs to be done.

In this strategy, the investors seek out stocks that are being traded that do not
comply with their intrinsic value. There can be two cases under this-
overvaluation and undervaluation.

Overvaluation refers to the situation when a stock’s trading price is higher

than its intrinsic price, and undervaluation refers to the situation when the
stock’s trading price is lower than its intrinsic price.

Investors purchase stocks when they are undervalued and sell them when the
stocks reach their intrinsic value or higher. The investor has to be patient and
wait till the price of the share rises, which maybe after a year or a few years.

The Advantages of Value Investing are:

Risk Minimisation- Usually, equity stocks are associated with high risks but,
in the value investing method, the investors earmark the undervalued stocks
and buy the potent shares on sale, thereby reducing the associated risks. They
use margin of safety to reduce the risk. When these shares are sold at their
intrinsic value or more, the investors receive substantial capital gains.

Substantial Returns- Due to the employment of the Margin of Safety, the

returns are usually more than the average return in the long term.

32
2. Growth Investment:-

This strategy focuses on capital increment. Investors employing this strategy

usually purchase stocks of companies that exhibit signs of above-average
earnings increments relative to the market or their industry sector. Usually,
these companies are young or small and emerging with high prospective
returns, posing a higher risk.

Since these investors aim for capital appreciation, most growth-stock

companies reinvest their earnings instead of paying their shareholders
dividends.

If the company is assumed to have a higher potential of prospering, the stocks

are traded at a high price/earnings (P/E) ratio, with the hopes of higher stock
prices in the future as they are expected to perform better in the future.
Usually, these companies hold patents or have access to technologies that put
them ahead in the industry and ensure long term growth.

3. Income Investing:-

This strategy is focused on generating a regular stream of income. Usually,

these portfolios include bonds, stocks, Real Estate Investment Trusts
(REITs), exchange-traded funds (ETFs), and other such investment
instruments that produce the highest passive annual income. The incomes are
usually dividends, bond yields, and interest returns and involve minimal risks.

The Advantages of Income Investing are:

A supplement of fixed income-It is an excellent way of earning extra income

through one’s own assets to supplement their permanent income.

Potential for growth of capital stock-In the long term, income investing
strategies generate a potential for capital stock growth, eventually adding to
one’s stock of wealth.

4. Socially Responsible Investing:-

33
In this investment strategy, investments are made, considering the social
impact and the impact on the environment. Usually, investments are made in
companies engaged in socially conscious activities such as social justice,
alternative energies, clean technologies, environmental sustainability, etc.
Investments are not made in companies that have a negative impact on
society- like cigarette manufacturing companies, companies offering gambling
services, etc.

The two primary goals of a socially responsible investing strategy are financial
gain and social impact. One might not be able to achieve both together, as a
socially conscious investment might not provide good returns, and an
investment in a company with good returns might not have socially conscious
principles. Hence, an investor needs to read through the fund’s brochure and
determine the portfolio manager’s philosophies.

5. Small-Cap Investing:-

Small-cap investing strategy refers to investments made in stocks of small

companies that have smaller market capitalisation, usually between $300
million and $2 billion. These investments are risky. The appeal of these stocks
lies in the fact that, unlike large-cap stocks that have high prices due to being
noticed by everyone, investors usually stay away from these stocks due to
their riskiness and because there are restrictions on investment by institutional
investors. Hence, an investor has to be well-versed with the stock market
investment as these stocks are quite volatile and difficult to trade.

The Advantages of Small-Cap Investing are:

Growth Potential-Most large-cap companies were once small businesses. The

new emerging companies bring new products and services to the market and
sometimes even create entirely new markets. Since these companies have
lower total value, they can grow in manners, unlike large-cap companies.

Restrictions on investment by mutual funds-Mutual Funds usually invest large

amounts that small-cap companies cannot support. For the investment to
impact the fund’s performance, the portfolio manager has to buy at least
twenty per
34
cent of the shares. The SEC or Securities and Exchange Commission has
introduced restrictions such that mutual funds cannot establish such prominent
positions, giving individual investors an advantage to pick on promising
companies before the institutional investors can.

Hence, choosing a strategy for investment requires a thorough understanding

of the investor’s goals and which suits his needs best.

35
 CHAPTER 2: REVIEW OF LITERATURE

Barber and Odean (2000): This study found that young investors make more
frequent trades and exhibit overconfidence, leading to lower returns.

Guiso and Suedekum (2014): This research showed that young adults are
more likely to invest in risky assets like stocks, highlighting their higher risk
tolerance.

Belsky and Demers (2011): This study suggested that gamification elements
in financial apps can lead to impulsive trading among young adults.

Siegal and Lusardi (2008): This research found that young adults are less
financially literate than older generations, emphasizing the need for financial
education.

Damodaran (2020): This book highlights the benefits of long-term investing

for young adults, emphasizing the power of compounding returns. A number
of studies have been conducted worldwide measuring the awareness of
individuals about financial matters, products, insurance and stock markets. For
example, Beal and Delpachitra (2003) led and tested five main skill areas of
financial literacy—basic concepts, markets and instruments of the financial
markets, planning, analysis and decision making, and insurance. The
researchers reached the overall conclusion that university students were not
skilled, nor knowledgeable in financial matters. Similar inferences have been
drawn by Commonwealth Bank Foundation’s Australian Financial Literacy
Assessment (2005). Similar inferences have been drawn by Commonwealth
Bank Foundation’s Australian Financial Literacy Assessment (2005) revealing
that around 50 per cent of all respondents could not interpret a bank statement.
Moreover, Lusardi and Mitchell (2007) while assessing awareness of investors
about understanding of interest compounding, effects of inflation and risk
diversification found lack of knowledge among the general masses with
particularly severe among the elderly, females and those with limited
education

36
Abhijeet Birari & Umesh Patil (2014) studied the spending and savings
habit of youth in the city of Aurangabad. The study finds that significant
difference exists in the spending habits of students belonging to different
education levels. The study finds that most of the youth in the sample spend a
large portion of the money on consumable goods and that due to lack of
awareness, the amount of money saved or invested is very little.

Gina Chowa, Mat Despard & Isaac Osei-Akoto (2012) in their paper
attempted to find whether the youth will participate in saving via formal
financial services if the given the opportunity. The study found that most
youth in the sample, set aside money regularly, hold onto their set aside
money for short periods of time and use it mostly for short term consumptive
purposes. The study concluded that, youth of a developing country have a high
propensity to save but, lack of proper knowledge and information restricted
the youth from venturing out the area formal saving and investments.

Patel & Patel (2012) studied the investment perspective of salaried people.
The paper aimed at studying the behavioural pattern & difference in
perception of an individual related to various investment alternatives. The
study finds that the youth that was surveyed preferred investments over
savings. The study also discovers that, rather than safe and secure investments,
the youth prefer investments that are high risk but also yield high returns.

Suman Chakraborty and Sabat Kumar Digal (2011) found from their work
that, saving is significantly influenced by demographic factors such as age,
occupation and income level of investors. . It was found that female investors
tend to save more in a disciplined way than the male investors. Paper attempts
to explore whether dichotomy of the popular believes that men are more pro-
risk than women. It was observed that women are risk averse indeed but save
more than the male counterparts as the income level rises

Kabra, Mishra and Dash (2010) studied the factors which affect individual
investment decision and differences in the perception of investors in the
decision of investing on the basis of age and gender and found that investors'
age and gender predominantly decides the risk taking capacity of investors

37
Manish Mittal and R. K. Vyas (2007) study on “Demographics and
Investment Choice among Indian Investor” shows that based on gender, men
prefer Equities as their first choice and women prefer post office deposits as
their first choice. The investor of age group 18-25 first choice is Equities. Less
income group prefers post office deposit and high income group prefers
Derivatives as their first choice. Post graduates prefer Mutual Fund and
Professionals prefer Equity. Service as occupation people prefers Equity
whereas housewife prefers Real estates and Bullions.

Ajeesh P (2019) Young investors were found to be risk-averse and

conservative in their attitude while investing their funds. Their expenditure
habits were highly influenced by mass media, window shopping and brand-
impressing Technological innovations stimulate young entrepreneurs to invest
in the stock market. Professional training is highly essential for improving the
investment skills and abilities of young entrepreneurs in stock market
investments

Mr. Rajeev Kumar, Dr. Narendra Singh Chawda, Dr. Rajan K.

Shrikhande (2021) “Savings and prudent investments is inevitable for
secured financial future”. This bare truth needs to be understood and analysed.
Savings and Investment are considered as two very important concepts that
need to be studied in order to understand the behaviour, pattern and decision-
making process of the mass investors. Even today majority of the people are
still not aware of the significance of savings and investments. Therefore, it is
very crucial to make them aware about the importance of investment, different
avenues available in the market and then, understand their attitude towards the
investment at early stage of life. The present study can be relevant to
understand the investing pattern and attitude, behaviour investors in India
mainly in Pune.

Aabida Akhter, Mohiuddin Sangmi (2015) Stock market is known as a

pulse of economy or economic mirror, which reflects the economic conditions
of a country. Investors are believed to be the backbone of the securities
market. Their education and awareness, therefore, hold the key to reviving and
sustaining their interests in the securities market. Stock market awareness
comes under the broader concept of financial literacy. This study is an attempt
38
to assess the awareness of youth about various aspects of stock market
including

39
concepts, products, processes, institutions etc. The results of the study reveal
that the sample youth possess low to moderate level of stock market
knowledge and the awareness level is not significantly different among
different sample groups based on the discipline they are studying.

Zainal Azhar, Juliza, Nor Azilah, Amirul Syafiq (2017) had investigated
the extent of youth investing awareness and the many influences on it. 120
young individuals According to the studies, many respondents believed that
there was still a lack of widespread understanding regarding investments. The
study's findings also show that two factors—financial literacy and personal
interest— played a significant effect in the younger generation's investment
knowledge and decision to invest in particular financial instruments.

Mebin John Mathews (2017) had investigated the financial habits of young
adults. With the assistance of friends, families, and references groups, samples
of 50 college students were chosen for the study using the convenience
random sampling method. According to the report, the majority of students do
not have a habit of saving money. Students will definitely save their share of
earnings if they are aware of the opportunity. If they put their savings into a
productive channel, it will be used to increase individual income and other
people will be able to borrow money through that channel.

Abhijeet Birari & Umesh Patil (2014) investigated young people's spending
and saving behaviours in Aurangabad. The study concludes that there are
notable differences between the spending patterns of students from various
educational backgrounds. The majority of the young people in the study's
sample spend a significant percentage of their income on consumables, and as
a result of their ignorance, they invest or save very little money.

Dillip Anand (2022), Investing in mutual funds, stocks, and banks is

compared, and the Net Asset Value (NAV) is calculated. These are all topics
covered in the paper. Investors' attitudes regarding mutual funds are
influenced by a variety of economic and demographic characteristics,
including their age, gender, and degree of literacy, as well as their
amount of income, kind of employment, and personal savings, all of
which are discussed in this

40
article. Weighted average scores and an assumed scale were used to rank
aspects like gender, age, income and education of investors in order to
examine different factors such as gender, age, income and education. It is
hypothesised that investors' attitudes regarding mutual funds may be
influenced by these variables

Panjali, N. and Kasilingam, R. (2015), “A Study of the Impact of Investors

Life Style on Their Investment Behaviour,” in their study state that investment
behaviour of investors can be studied in various ways. Lifestyle is another
important factor which influences the investment behaviour of the people.
So now it becomes important for the intermediaries and capital market
operators to know the lifestyle of the investors to design effective
instruments andcan motivate them to enhance their penetration in different
financial avenues

Abida (2012), the researcher has examined the role of investors as the
fundamental support of the securities market. Hence, their education and
awareness play a pivotal role in revitalizing and maintaining interest in the
securities market. Stock market understanding is included within the wider
idea of financial literacy. The poll aims to evaluate the attitudes of young
individuals about many facets of the stock market, including ideas, goods,
procedures, and institutions. The research findings revealed that the young
individuals in the sample had a limited to moderate level of understanding
and consciousness about the stock market. Moreover, there were no notable
disparities seen across the various sample groups in relation to the specific
areas examined.

Luigi Guiso and Tullio Jappelli (2005), Researcher in this study looked
at "Awareness and Stock Market Participation" and what factors influence
people's level of awareness. They discovered that factors like education,
household resources, as well as long-term bank relations are significantly
correlated with people's level of knowledge about stocks, mutual funds, and
investment accounts. Findings from the study highlight the significance of
financial literacy in solving stockholding conundrum and calculating
opportunity cost of stock market participation

41
Ronald P et al. (1992) surveyed the personal investment literacy among
college students the study examined the knowledge of personal investments
between students belonging to both genders and from various academic
disciplines. The study found that female students were less knowledgeable
about investments than male students. It also founds that students belonging to
no business disciplines had less knowledge than the students belonging to
business discipline. They concluded that the level of knowledge among
college students was grossly inadequate and needed attention.

Akhter, Aabida and Sangmi, Mohi-ud-Din (2015) examined stock market

awareness among educated youth in Srinagar. The study considered
undergraduate students from medicine, engineering, commerce, science and
arts. They found that the average level of awareness related to basic concepts
of stock market among the students was between low and moderate. But the
awareness about stock market process was found to be very low. They also
found that the students from Commerce College had relatively better
awareness compared to the students from medical college. They suggested that
institutions related with banking, insurance and stock market should take
active interest in promoting awareness among the educated youth.

Goel, Ankit and Khatik, Rajendra (2017) examined the investors’

awareness about mutual fund investments in India. They reported that majority
of the respondents were aware about mutual funds, but had not invested in
mutual funds due to lack of full knowledge about mutual funds. They also
reported that investment in bank deposits and life insurance are given
preference over mutual funds. The study recommends that mutual fund
companies and other institutions should organise training programmes to
improve the awareness among the investors. The available literature on
investment awareness is mostly related to investors or salaried class people.
Very few studies have been done on college students. From the above
literature, it can be concluded that the overall level of awareness related to
various investment alternatives and markets is low. In this context, the current
study is aimed at understanding the level of awareness and knowledge about
investments among the college students of Tumakuru.

42
Akhter and Sangmi (2015) stated that undergraduate students do not possess
an adequate level of stock-market awareness and the analysis indicates
that the respondents have a moderate level of literacy.

Thapa (2018) concluded that the students would like to have knowledge
and experience of crypto currencies, mutual funds, bonds, and stocks.
Students should understand the stock market and have ample experience,
ideas, and business skills to become good investors in the future.

The stock market is the platform where buying and selling practices of shares
are going on. This study is with references the collection of primary data such
as a questionnaire. The research is about technological alteration investment
objectives to achieve this different hypothesis were formulated (Shankar &
Bhatt, 2022).

The stock market is helping out in the development of the economy,

movement of the stock market is enhancing every day. People from any
background viz. arts, science, or commerce can invest in the stock market.
Maybe or may not a student be aware of the stock market. Moto behind the
investments of the students and also recognition of satisfaction in the
investment (Kadfak, 2020)

The investors of the stock market are the backbone of the market so investors
should prefer a proper investment plane it is, the sense that to understand the
increased awareness in their knowledge among money markets. This study
refers to the testing hypothesis of information, hurdle of the market (Hakim,
2021).

Some articles are all about the insight of stock market investments, Chi-square
test is applied in the hypothesis. To understand the knowledge of the stock
market, settlement period, and interest rates on bonds. To assist investors with
a suitable investment platform.

43
 CHAPTER 3: RESEARCH METHODOLOGY

3.1 MEANING:

The different ways to carry out the research investigation are described in
research methodology. It demonstrates the order of the steps that are taken
throughout the research process, from the start of the study to its conclusion.
Hence, research technique is a means for methodically addressing the issue
and obtaining specific insights. The use of various techniques to collect data,
provide an interpretation of the data collected, and draw conclusions about the
research data are all described in the methodology. It also includes the
instruments to be used, the sample of the study to be used for data collection,
the tools and techniques of analysis used, and the conclusions that are to be
made at the end of the data collection process. It might be viewed as a science
that studies how research is conducted. It is the study of various steps that are
generally adopted by a researcher in studying the research problem along with
the logic behind it. It is necessary to know not only the research techniques but
also the methodology

Research Methodology is a way to systematically solve the research problem.

It may be understood as a science of studying how research is done
scientifically. It is the study of various steps that are generally adopted by a
researcher in studying the research problem along with the logic behind it. It is
necessary to know not only the research techniques but also the methodology.
It means any efforts which are directed to study of strategy needed to identify
the problems, areas of improvement during production and through research
finding the best solution and company’s position according to the targets set
by the company

3.2 Objective:

The primary objective of this thesis is to focus on where the youngster do

enter as a trader or investor and a basic knowledge about the trading and
investment within the young adults. So, that they can engage in financial
activities in early time and learn basic about the stock market and take an
advantage to learn

44
 Fundamental as well as technical analysis at a early age. Nowadays
everywhere there is business, new start-up companies are emerging, and the
share market is broader than before. To run the business, they allocate the
number of shares in the market. Youngster can invest a certain amount of
money in the stock market. Below listed are some objectives of the thesis:-

 To study the approach of youngster whether they enter the market as a Trader
or Investor.
 To find out what percentage and the awareness among youngster do Investment
 To find out what percentage and the awareness among youngster do Trading
 To know the amount of risk taken by youngster as a Trader
 To know the amount of risk taken by youngster as an Investor
 To measure the level of youngster satisfaction in the investment in shares
 To know the male-to-female ratio of investment in the stock market.

3.3 Scope:-

Key variables is to study the approach, perception of youngster whether as a

trader or investor in stock market. Nature of the data to be used for the study is
the two methods of collecting the data are Primary Data and Secondary Data:-

 Gathering data by filling up the questionnaire among youngster that is the age
between 18 to 25
 Primary data was used in this research work. The primary data is collected by
the use of questionnaires by the creation of questions and sent to respondents.
Respondents have to fill out the google form for the collection of data. 50
responses has been collected.

WHAT ARE THE ADVANTAGES?

Primary data collection has many advantages over traditional data collection
methods.

1. Specific Relevance:

45
Primary data can be designed to provide precisely the information needed for
a specific research question or objective. This allows for targeted data
collection.

2. Timeliness:

Primary data is typically more up-to-date than secondary data since it can be
collected in real-time. This is especially important in fast-paced markets or
industries.

3. Control:

During primary data collection, researchers have full control over the data
collection process, including sample selection, question types, and data
collection methods. This enables better quality control and data validity.

4. Adaptability:

Researchers can tailor data collection methods to suit their specific needs,
whether through surveys, interviews, observations, or experiments. This
allows flexibility in capturing different types of information.

5. Uniqueness:

Since primary data is collected exclusively for the specific research project, it
is typically unique and not available to competitors. This can provide a
competitive advantage.

6. In-Depth Insights:

Primary data often allows for deeper insights into the behavior, attitudes, and
preferences of the target audience. This can help make more informed
decisions.

WHAT ARE THE DISADVANTAGES?

There are a few disadvantages to primary data collection. One disadvantage is

that it can be time-consuming and difficult to collect accurate information.

46
Another disadvantage is that it can be invasive and disruptive, often requiring
people to take time away from their normal activities. And finally, it may not
be representative of your entire audience, and you may not have access to all
the relevant information.

The advantages and disadvantages of different types of primary data

collections should be considered when designing a study or when selecting a
sampling method for your research project.

47
 CHAPTER 4: DATA ANALYSIS AND INTERPRETATION

4.1 MEANING

The process of evaluating, purifying, manipulating, and modelling data in

order to find relevant information, support judgements, and help decision-
making Data analysis contributes to more scientific decision-making and more
efficient business operations in the modern business world. The process of
reviewing data and drawing pertinent conclusions while utilising a variety of
analytical techniques is known as data interpretation. Researchers can
categorise, manipulate, and summarise data with the aid of interpretation in
order to find answers to important issues.

The first step in the data analysis process is to understand the profile of young
people who choose Investment or Trading. This can include factors such as
age, gender, education, income, and occupation.

Chart 2: What youngster prefer?

SOURCE: - Questionnaire via google form

What is trading?

48
Trading is the buying and selling of securities, such as stocks, bonds,
currencies, commodities, and derivatives, with the goal of making a profit.
Traders can include individuals, institutional investors, and financial
institutions.

What is Investment?

An investment is an asset or item acquired with the goal of generating income

or appreciation. Appreciation refers to an increase in the value of an asset over
time. When an individual purchases a good as an investment, the intent is not
to consume the good but rather to use it in the future to create wealth

Interpretation-

The above pie diagram represents what a youngster prefer to enter the stock
market whether as a trader or investor. Where 64% prefer to enter the stock
market as a Investor and 36% prefer to enter the stock market as Trader.

It seems like the youngster to prefer an investor for a longer term as compared
to trading. This can be reason where for trading require a lot of time as well as
technical knowledge to create short gain whereas, investing mainly focus on
wealth creation for a longer term.

The below pie diagrams shows the data relating to Investment

Chart 3: Gender?

49
SOURCE: - Questionnaire via google form

Interpretation-

The above pie diagram represent how much percentage male and female do
investing in stock market.

Hence, 56.3% of male youngster show interest for the investment and 43.8%
of female show interest for investment in stock market. This also represent
that more male youngster are interested as compared to female percentage

Chart 4: Age?

SOURCE: - Questionnaire via google

form Interpretation-

The above pie diagram shows which group of age are more interested for
investment in stock market,

So, the highest percentage that is 43.8% which belong to age 21 are mainly
enter the stock market as an investor. Lowest percentage which belongs to age
18 and 23 who enter stock market as an investor

50
The above pie diagram also shows that the youngster have a knowledge and
awareness about investment at an early age which create a benefit for a longer
term as to create a great corpus.

Youngster are also interested to start their investment at an age of 20 which

gives an advantage to experience the stock market at an early age and to know
different investment avenues as compared to the age of 22 and 23.

Chart 5: Time Horizon?

SOURCE: - Questionnaire via google

form Interpretation-

The above pie diagram shows the 90.6% of youngster prefer to invest for long
term and only 9.4% prefer to invest for short term

It also shows that the youngster prefer to create long term wealth and which
give better long term return, by investing in mutual fund which itself give
compounding benefit or by investment in stocks via IPO or at a lower circuit
or by own analysis can give better return for a long term

51
By holding Exchange Traded Fund (ETF) for a longer term it comes with
many benefits like:-

Diversification: Instantly gaining exposure to a diversified set of underlying

assets is a key benefit of a single ETF. Achieving such diversification through
the individual purchase of stocks or bonds can be both challenging and costly.

Cost efficiency: Most ETFs generally boast lower expense ratios compared to
actively managed mutual funds since they passively track an index instead of
maintaining a team of analysts for selecting individual stocks.

Transparency: The majority of ETFs disclose their holdings daily, providing

complete transparency regarding the components of your investment.

Minimal investment: Numerous ETFs feature comparatively modest minimum

investment requirements, enabling accessibility for investors with smaller
capital bases. This flexibility allows you to initiate the gradual construction of
your portfolio and engage in market growth, even with limited funds.

By holding Stocks for a longer term it gives various benefits like,

Lower Capital Gains Tax Rate: Profits that result from the sale of any capital
assets end up in a capital gain. This includes investments like stocks, bonds,
and many more. An investor who sells a security within one calendar year of
buying it gets hit with taxes on any gains at a rate that's the same as for
ordinary income.

More Cost-Effective: One of the main benefits of a long-term investment

approach is money. Keeping your stocks in your portfolio longer is more cost-
effective than regular buying and selling because the longer you hold your
investments, the fewer fees you have to pay.

Benefit from Compounding with Dividend Stocks: Dividends are corporate

profits distributed by companies with a track record of success. These tend to
be blue chips or defensive stocks. Defensive stocks are companies that do well
regardless of how the economy performs or when the stock market drops.

52
These companies pay regular dividends—usually every quarter—to eligible
shareholders, which means that you get to share in their success. While it may
be tempting to cash them out, there's a very good reason why you should
reinvest the dividends into the companies that actually pay them

Decisions May Be Less Emotional, More Lucrative: Let's face it, we're not as
calm and rational as we claim to be. In fact, one of the inherent flaws in
investor behaviour is the tendency to be emotional. Many individuals claim to
be long- term investors until the stock market begins falling, which is when
they tend to withdraw their money to avoid additional losses.

Many investors fail to remain invested in stocks when a rebound occurs. In

fact, they tend to jump back in only when most of the gains have already been
achieved. This type of buy high, sell low behaviour tends to cripple investor
returns.

Chart 6: At what age did youngster started their investment?

SOURCE: - Questionnaire via google form

53
Interpretation-

The above diagram shows that at what did young investor started their journey
in “Investment.”

56.3% of the youngster started their journey at the age of 19 whereas, 25% of
the youngster started their journey at the 20 and 15.6% of the youngster their
investment at the age of 18.

Chart 7: From where the amount of investment is taken?

SOURCE: - Questionnaire via google

form Interpretation-

The above pie diagram shows that from where the amount of investment is
taken by young investor. Hence the initial amount for the investment taken by
own fund that is 62.5% shows the highest ratio among all the answer

25% of the youngster do job for the amount of investment and 9.4% of
youngster desire to take amount of investment from their parents

54
1% of the youngster use their own saving with saving of their parents to their
investment journey

Chart 8: How much amount did youngster invest?

SOURCE: - Questionnaire via google

form Interpretation-

The above pie diagram shows that how much young investor prefer to invest in
stock market

Many investor prefer to invest a minimum amount of Rs.10000 in stock

market and many of them prefer to invest Rs.20000 the lowest amount where
the young investor prefer to invest Rs.100

This amount can diversified in different investment avenues like stocks,

mutual fund, bonds, etf and etc. The amount invested on monthly, quarterly,
yearly basis can give a long term benefit as well as short term benefit

55
Chart 9: What is your level of experience with investment?

SOURCE: - Questionnaire via google

form Interpretation-

The above diagram shows the level of stats or the level of experience which is
experienced by the youngster in respect of investment

As we can see the result of the pie diagram many of the young investor are
beginner that is 68.8% are beginner and 31.3% are intermediate so, starting at
the age of 20 gives a one step ahead advantage as compared to person starting
at an age of 22 or 23.

56
 Chart 10: Where youngster prefer to invest?

SOURCE: - Questionnaire via google form

Meaning

1. Stocks:

A stock is a general term used to describe the ownership certificates of any

company. A share, on the other hand, refers to the stock certificate of a
particular company. Holding a particular company's share makes you a
shareholder. Stocks are of two types—common and preferred. The difference
is while the holder of the former has voting rights that can be exercised in
corporate decisions, the later doesn't. However, preferred shareholders are
legally entitled to receive a certain level of dividend payments before any
dividends can be issued to other shareholders.

2. Mutual Fund:

A mutual fund is a company that pools money from many investors and
invests the money in securities such as stocks, bonds, and short-term debt. The
combined holdings of the mutual fund are known as its portfolio. Investors
buy

57
 shares in mutual funds. Each share represents an investor’s part ownership in
the fund and the income it generates.

3. Exchange Traded Fund:

An exchange-traded fund (ETF) is a type of pooled investment security that

can be bought and sold much like an individual stock. The main difference
between an ETF and a mutual fund is that though a mutual fund is also a
pooled investment, it trades only once a day after market close. An ETF can
be structured to track anything from the price of an individual commodity to a
large and diverse collection of securities. ETFs can even be designed to track
specific investment strategies.

4. Initial Public Offering:

When a private company first sells shares of stocks to the public, this process
is known as an initial public offering (IPO). In essences, an IPO means that a
company’s ownership is transitioning from private ownership to public
ownership. For that reason, the IPO process is sometimes referred to as “going
public.”

Interpretation-

The above pie chart shows that where the young investor prefer to Invest

46.9% of the youngster prefer to Invest in “Stocks”, where as 46.9% also

prefer to invest in “Mutual Fund” and the remaining prefer to trade in
“Exchange Traded Fund”

A mutual fund can be started at a minimum amount Rs.100 by debiting their

account and which doesn’t require a lot of knowledge whereas, Stock can be
started by doing fundamental analysis

58
Chart 11: Did youngster use Stop-Loss in stocks?

SOURCE: - Questionnaire via google form

Meaning

What is a Stop loss?

A stop-loss order is an order placed with a broker to buy or sell a specific

stock once the stock reaches a certain price. A stop-loss is designed to limit an

investor's loss on a security position. For example, setting a stop-loss order for

10% below the price at which you bought the stock will limit your loss to

10%. Suppose you just purchased Indian Railway Finance Corporation (IRFC)

at 100 per share. Right after buying the stock, you enter a stop-loss order for

80. If the stock falls below 80, your shares will then be sold at the prevailing

market price.

Advantages of Stop Orders

59
1. Guaranteed execution: When a stop order is triggered, it becomes a market
order, ensuring that the trade will be executed. This provides traders with
certainty that their order will be filled, even if it means at a slightly different
price than the stop price.

2. Additional control over trades: Stop orders give traders additional control
over their trades. They allow traders to set predefined exit or entry points
based on their analysis or trading strategy. This helps remove emotional
decision- making from the trading process and ensures that trades are
executed according to predetermined rules.

3. Loss limitation: Stop orders are commonly used to limit potential losses. By
setting a stop-loss order, traders can specify the maximum amount they are
willing to lose on a trade. If the market moves against its position, the stop-
loss order will automatically trigger, helping to prevent further losses.

Disadvantages of Stop Orders

1. Fluctuation risk: Stop orders are susceptible to short-term price fluctuations

and market volatility. In fast-moving or turbulent market conditions, the price
may briefly dip or spike, triggering the stop order and potentially resulting in
an unfavourable execution price. Traders need to be aware of this risk and
consider placing their stop orders with some margin of error.

2. Slippage: Slippage refers to the difference between the expected execution

price of a stop order and the actual price at which it is executed. Slippage
can occur when the market moves rapidly or when there is insufficient
liquidity, causing the executed price to deviate from the stop price. This can
impact the overall profitability of a trade, especially in volatile markets or
during significant news events.

60
Interpretation-

The above pie chart shows that does young investor uses stop-loss order in
stocks

62.5% of the youngster uses stop loss order and 35.5% does not use stop-loss
order. .By using stop-loss order the young investor can cut their loss at a desire
loss. Not using stop-loss order the risk can be greater in respect desire loss.

Chart 12: Do you invest in Stock Market?

SOURCE: - Questionnaire via google

form Interpretation-

The above pie chart represent that the weather youngster invest their amount
in stock market by their by their own analysis or by tips or told by someone
else

Majority of young investor that is 75% of the investor do invest by their own
analysis. This can give an advantage that by investing by their own can help to
gain more experience.

12.5% of the youngster invest their amount which is told by some-one else.
This can be disadvantage that if the analysis goes wrong than the loss can be
huge because many of the young investor are beginner if they doesn’t

61
known the

62
basic of risk/reward, money management, risk management then the risk can
be huge

Chart 13: Whether youngster are aware about different strategies of investment?

SOURCE: - Questionnaire via google form

Different strategies that can be followed by the young investor are as follows:-

Strategy 1: Value Investing

Value investors are bargain shoppers. They seek stocks they believe are
undervalued. They look for stocks with prices they believe don’t fully reflect
the intrinsic value of the security. Value investing is predicated, in part, on the
idea that some degree of irrationality exists in the market. This irrationality, in
theory, presents opportunities to get a stock at a discounted price and make
money from it.

Strategy 2: Growth Investing

Rather than look for low-cost deals, growth investors want investments that
offer strong upside potential when it comes to the future earnings of stocks. It
could be said that a growth investor is often looking for the “next big thing.”

63
Growth investing, however, is not a reckless embrace of speculative investing.
Rather, it involves evaluating a stock’s current health as well as its potential to
grow.

Strategy 3: Momentum Investing

Momentum investors ride the wave. They believe winners keep winning and
losers keep losing. They look to buy stocks experiencing an uptrend. Because
they believe losers continue to drop, they may choose to short-sell those
securities.

And many more strategies

Interpretation-

The above pie chart shows that whether the young investor knows the different
strategies of investment

87.5% of the investor knows the different strategies of investment whereas

12.5% doesn’t knows.

Chart 14: Whether youngster are aware about different ratios of mutual fund?

SOURCE: - Questionnaire via google form

64
Different ratios of mutual fund are as follows:

1. Alpha

Alpha is a risk-adjusted return metric. It is a measure that compares a fund’s

performance to its benchmark. A fund with alpha zero means it has delivered
the same returns as the benchmark. A negative alpha indicates that the fund
has underperformed its benchmark. On the other hand, alpha greater than one
indicated the fund’s outperformance.

2. Beta

Beta measures the sensitivity of a mutual fund towards the dynamic market
movements. It’s a metric that measures how volatile a mutual fund portfolio is
in comparison to the overall market. Looking at a mutual fund’s beta, you can
get a sense of how the fund responds to market fluctuations. The beta of a
market or benchmark is always one. A beta of less than one suggests lesser
volatility when compared to the benchmark index. A beta greater than one
suggests a high level of volatility.

3. Standard Deviation

A standard deviation is a statistical measure of how much a portfolio’s returns

deviate from its average. A mutual fund’s standard deviation reveals its
volatility. It shows how far a mutual fund’s performance deviates from
expected returns. A high standard deviation indicates a wider range of returns,
whereas a lower value indicates a narrower range of returns.
Standard deviation measures the total risk of the mutual fund rather than just
the market-related volatility. As a result, it is a more comprehensive statistic
than beta.

4. Sharpe Ratio

65
Sharpe ratio is a performance metric that helps in estimating a mutual fund’s
risk-adjusted returns. Risk-adjusted returns are the returns a mutual fund
generates over and above the risk-free rate of return. The higher the ratio, the
better the investment return in comparison to the risk. A higher Sharpe ratio
indicates better risk-adjusted returns. A negative Sharpe ratio, on the other
hand, indicates that risk-free investments are preferable to a fund with a
negative Sharpe ratio.
The Sharpe ratio takes into account an investment’s inherent risk (standard
deviation). As a result, the Sharpe ratio aids in determining a fund’s return
generating capacity for each unit of risk it absorbs.

Interpretation-

The above pie chart shows that does the youngster knows the different ratios
of mutual fund

More than 90% of the youngster knows the ratio of mutual funds. By
comparing different scheme with different ratios the young investor can select
best scheme.

Chart 15: On which ratio did youngster choose stocks?

SOURCE: - Questionnaire via google form

66
 Meaning

1. P/E Ratio:

P/E Ratio or Price to Earnings Ratio is the ratio of the current price of a
company’s share in relation to its earnings per share (EPS). Analysts and
investors can consider earnings from different periods for the calculation of
this ratio; however, the most commonly used variable is the earnings of a
company from the last 12 months or one year. It is also referred to as price
multiple of earnings multiple

Types of Price to Earnings Ratio:

There are primarily two types of P/E Ratio which investors take into
consideration – forward P/E ratio and trailing P/E ratio. Both these types of
P/E Ratio depend on the nature of earnings, as enumerated below –

Forward P/E Ratio

It is calculated by dividing the prices of a single unit of stock of a company

and the estimated earnings of a company derived from its future earnings
guidance. As such a ratio is based on the future earnings of a company, it is
also called an estimated P/E Ratio.
Investors use forward Price to Earnings Ratio to assess how a company is
expected to perform in the future and its estimated growth rate.

Trailing P/E Ratio

Trailing P/E Ratio is the most commonly used metrics by investors; wherein
past earnings of a company over a period is considered. It provides a more
accurate and objective view of a company’s performance

2. Debt-to-Equity (D/E) Ratio:

67
 Debt-to-equity (D/E) ratio is used to evaluate a company’s financial
leverage and is calculated by dividing a company’s total liabilities by
its shareholder equity. D/E ratio is an important metric in corporate finance. It
is a measure of the degree to which a company is financing its operations with
debt rather than its own resources. Debt-to-equity ratio is a particular type
of gearing ratio.

3. Working Capital Ratio:

Assessing the health of a company in which you want to invest involves
measuring its liquidity. The term liquidity refers to how easily a company can
turn assets into cash to pay short-term obligations. The working capital ratio
can be useful in helping you measure liquidity. It represents a company's
ability to pay its current liabilities with its current assets.

4. Return on Equity (ROE):

Return on equity (ROE) measures profitability and how effectively a company

uses shareholder money to make a profit. ROE is expressed as a percentage of
common stock shareholders.

Interpretation-

The above pie chart shows that whether young investor knows different ratios
of stocks
59.4% of the young investor knows the different ratios of stock. This can help
to create a better return portfolio on the basis of different ratios of stocks.

68
Chart 16: On which analysis did youngster invest in stocks?

SOURCE: - Questionnaire via google form

Meaning

What is Fundamental Analysis?

Fundamental analysis assesses a company’s potential based on financial and
non-financial data to obtain the fair value of its security, stock, bond, or
derivate. It involves examining every aspect of a company’s operations
through its balance sheet, past performance, financial reports, even market
goodwill, management, and consumer behaviour to arrive at the intrinsic value
of its securities. The analysis begins from macroeconomics factors such as the
economy and industry performance

What is Technical Analysis?

Technical analysis is a trading discipline employed to evaluate investments

and identify trading opportunities by analysing statistical trends gathered from
trading activity, such as price movement and volume. Unlike fundamental
analysis, which attempts to evaluate a security's value based on business
results

69
such as sales and earnings, technical analysis focuses on the study of price and
volume.

Interpretation-

The above pie chart shows on which analysis does young investor does invest
78.1% of youngster do invest via fundamental analysis.21.9% youngster do
invest via technical analysis

Chart 17: In SIP mutual fund where do you prefer to invest

SOURCE: - Questionnaire via google form

Meaning

 Small cap:

The capitalization of the company in which you invest is one of the essential
variables when deciding what goes into your equity portfolio.
Small Cap Funds invest in all companies except the top 250 in terms of market
capitalization. Though these funds are relatively riskier and volatile in the
short to medium term than other equity-oriented funds, they promise a higher
upside of return in the long term.

70
The stocks of these companies can possibly twofold or even triple up over an
exceptionally brief period. However, like most of the investments in the
market, the risks always persist. It is advised that you keep a bit of the best
small-cap mutual funds in your investment portfolio to make sure that you are
not missing out on the returns that you can get from them.

 Mid cap:

Mid-cap funds provide a diversified portfolio of mid-cap companies for

investors. Mid-cap stock funds invest in firms with established businesses.
Therefore, these companies have made equity capital markets a substantial
part of their capital structures. Overall, mid-cap companies tend to offer more
growth potential than large-cap stocks and with less volatility than the small-
cap segment. Mid-cap funds seek to capitalize on this capital appreciation
potential by creating funds that are diversified among mid-cap companies.

 Large cap:

Large Cap Mutual Funds are equity funds that invest a bigger proportion of
their total assets in companies with a large market capitalisation. These
companies are highly reputed and have an excellent track record of generating
wealth for their investors over a long period.

According to SEBI, large cap companies fall in the top 100 of the list of
companies according to market capitalisation. Hence, investing in these
companies is considered to be less risky and steady

 High Return Funds

High Return Funds are investment vehicles strategically designed to achieve

superior returns by focusing on high-growth assets like equities and high-yield
securities. Managed by financial professionals, these funds aim to outperform
standard market benchmarks. However, potential higher returns are associated
with increased risk, requiring investors to assess their risk tolerance and
investment objectives carefully.

Interpretation-

71
The above pie chart shows where the youngster prefer to invest in mutual fund

The result form the pie chart shows that the youngster prefer to invest in small
cap that is the ratio 53.1% is highest ratio whereas, 21.9% of youngster prefer
to invest in mid cap and 18.8% prefer to invest in high-return fund

Investing in small cap can be bit risky this is because it comes with more risk
as compared with mid cap but promise to give more return as compared to
mid- cap in short and medium term

Chart 18: What prevent you to invest?

SOURCE: - Questionnaire via google

form Interpretation-

The above pie chart shows that what prevent the youngster to invest
59.4% of the youngster does not invest due to risk. This can be reason that by
not defining proper risk-to-reward ratio or where the youngster doesn’t have
proper risk management.
Whereas, 34.4% youngster does not invest due to money

72
Chart 19: Why do you choose investment?

SOURCE: - Questionnaire via google

form Interpretation-

The pie chart shows that why youngster prefer to go with “Investment.”
50% of youngster prefer to go with investment because of Long term benefit
whereas, 37.5% prefer to go with affordability.

Chart 20: Whether youngster are aware about different investment channels?

73
SOURCE: - Questionnaire via google form

Interpretation-

The above pie diagram shows whether the youngster are aware about different
investment avenues
81.3% of the youngster known about the different channels of investment.
Whereas, 18.8% does not know about the different channels of investment.
Knowing different channels of investment can have an advantage to diversify
their investment into channels and which can also help the young investors to
mitigate losses during periods of stock market and economic uncertainty
Different types of investment perform differently at different times and are
based on different impacts of certain market conditions. This can help minimize
overall portfolio losses.

Chart 21: Whether youngster RHP

SOURCE: - Questionnaire via google form

Meaning

What Is a Red Herring?

74
A red herring is a preliminary prospectus filed by a company with the
Securities and Exchange Commission (SEC), usually in connection with
the company's initial public offering (IPO). A red herring prospectus contains
most of the information pertaining to the company's operations and prospects
but does not include key details of the security issue, such as its price and the
number of shares offered.

Interpretation-

The above pie chart shows whether the youngster read “Red Hearing
Prospectus” before investing in IPO.

As the data says that 56.3% of youngster does not read red hearing prospectus
before investing in initial public offering. Whereas, 43.8% read red hearing
prospectus before investing in Initial public offering.

The Red hearing prospectus gives various data of company like, Industry and
business overview, strengths of the company, various strategies which is used
by company, regulations and policies, company’s history, management and
many more

It create a decision making whether to invest or not in initial public offering.

Not reading red hearing prospectus can give a disadvantage to the investor

Chart 22: Do you prefer to invest in SGB or Physical Gold?

75
SOURCE: - Questionnaire via google

form Meaning

Gold has always been one of the most reliable and popular investment options
in India. But to limit the import of this precious metal, the Government of
India launched the Sovereign Gold Bond (SGB) scheme in 2015. Since then, it
has continued to launch different tranches of this scheme at regular intervals.

As compared to investing in physical gold and other popular investment

options, SGB is known to offer a host of valuable benefits. However, there are
a few drawbacks too. Let us have a look at some of the most important
advantages and disadvantages of SGB to help you make a smart investment
decision-

Advantages:

1. Interest payment

One of the biggest Sovereign Gold Bond scheme benefits is the interest
payment. The government offers a fixed annual interest rate on your SGB
investment. This interest payment is divided into two parts and is paid every 6
months to the investor.

Irrespective of whether the cost of gold rises or falls, you are guaranteed to
receive the interest.

2. Paper and Demat Format

To eliminate the cost and concern of storing physical gold, the SGB is
available in paper and demat format. When you invest in SGB, you do not
receive physical gold but a holding certificate.

This means that you do not have to worry about the safety of gold or pay an
annual fee for storing it in a bank locker. The certificate will be in your name
and with zero risks of getting stolen.

3. Tax Benefit

76
Sovereign Gold Bond scheme tax benefit is important too. No TDS is
applicable on the interest you receive from your SGB investment. You are also
allowed to transfer the bond before maturity and gain indexation benefit.

If you redeem the bond after maturity, even the capital gains tax will be
exempted. However, the interest is fully taxable as per your income tax slab.

Disadvantages:

1. Maturity

A lot of investors are discouraged by the gold bonds because of long maturity
period of 8 years. However, this long tenure is actually one of the most
important gold bond benefits.

The government has kept the maturity long in order to prevent gold price
volatility resulting in losses for the investors. It is also important to note that
investors can also redeem the bond after 5 years from the date of investment.

2. Capital Loss

Your investment in SGB can result in a capital loss as the bond value is
directly linked to the price of gold in the international markets. If the price at
which you buy the bond is higher than the price at which you redeem it at
maturity, you might end up in a loss.

But gold is an important commodity and the government consistently works to

keep its price stable. And if you’ll remain invested for 5-8 years, the chances
of capital losses are minimal. However, the possibility cannot be completely
eliminated.

Interpretation-

The above pie chart shows whether the youngster prefer to invest in
“Sovereign Gold Bond” or “physical”

68.8% of the youngster prefer to invest in sovereign gold bond, whereas

31.3% prefer to invest in physical gold. Because of the gold bond tax benefit,
government guarantee, and interest payment are taken into consideration, there

77
is no denying that sovereign gold bond is one of the best ways to achieve
portfolio diversification with investment in gold.

Chart 23:Do you invest?

SOURCE: - Questionnaire via google

form Interpretation-
The pie chart shows whether the youngster invest monthly, yearly or quarterly

The data shows that 43.6% of the youngster prefer to invest on monthly basis
whereas, 40.6% prefer to invest on Quarterly basis and 15.6% prefer to invest
on yearly basis.

78
Chart 24: How much average returns do you expect from sip?

SOURCE: - Questionnaire via google

form Interpretation-
The above pie chart shows how much average return youngster expect from
“Systematic investment plan” (SIP)

On an average youngster like to expect 28% return on sip whereas, 31.3%

expect 17% of return from SIP

Chart 25: How much returns do you expect from your portfolio?

79
SOURCE: - Questionnaire via google

form Meaning

What is a Portfolio?

As per portfolio definition, it is a collection of a wide range of assets that are

owned by investors. The said collection of financial assets may also be
valuables ranging from gold, stocks, funds, derivatives, property, cash
equivalents, bonds, etc. Individuals put their money in such assets to generate
revenue while ensuring that the original equity of the asset or capital does not
erode.

Depending on one’s know-how of the investment market, individuals may

either manage their portfolio or seek the assistance of professional financial
advisors for the same. As per financial experts, diversification is a vital
concept in portfolio management.

Types of Portfolio

Though there are several types of investment portfolios, investors make it a

point to build one that matches their investment intent and risk capacity.

Based on investment strategies, these following are some common types of

portfolios –

1. Income portfolio

This type of portfolio emphasises more on securing a steady flow of income

from investment avenues. In other words, it is not entirely focused on potential
capital appreciation.

For instance, income-driven investors may invest in stocks that generate

regular dividends instead of those who show a track of price appreciation.

2. Growth portfolio

A growth-oriented portfolio mostly parks money into growth stocks of a

company who are in their active growth stage. Typically, growth portfolios are

80
subject to greater risks. This type of portfolio is known for presenting high
risk and reward aspects.

3. Value portfolio

Such a portfolio puts money into cheap assets in valuation and focuses on
securing bargains in the investment market. When the economy is struggling,
and companies are barely surviving, value-oriented investors look for
profitable companies whose shares are priced lower than their fair value.
When the market revives, value portfolio holders generate substantial
earnings.

Table 2: Components of a Portfolio

The major components of an investment portfolio are described below –

Components Description

Stocks Stocks refer to company shares

and the investors’ ownership of
the same. Notably, the
percentage of ownership depends
on the number of company
stocks held by an individual. The
stockholders are entitled to a
share of the company’s profits,
and they avail it in the form of
dividends.

Investors can further generate

higher returns on their
investment in stock by selling
the same at a higher price.
Stocks are considered to be the
reward generating component
of an

81
 investment portfolio. However,
they come with a significant risk
factor.

Bonds Bonds come with a maturity date

and are considered less risky
than stocks. On maturity,
investors receive the principal
investment amount along with
interest. Bonds constitute the
risk- cushioning aspect of an
investment portfolio.

Alternatives Besides stocks and bonds,

investors can also add alternative
investment instruments like oil,
real estate, gold, etc.

Interpretation-

The pie chart shows that how much return youngster expects from their
portfolio?

65.6% of the youngster expect 10% from their portfolio whereas, 18.8% expect
12% from their portfolio

The below pie diagram is related to “Trading”

82
Chart 26: Gender?

SOURCE: - Questionnaire via google

form Interpretation-

The above pie diagram percentage of male or female do “Trading.”

Around 68.4% of male prefer to do Trading, whereas 31.6% of female prefer to

do trading

Chart 27: From where the amount for trading is taken?

83
SOURCE: - Questionnaire via google

form Interpretation-

The above pie diagram shows that from where the amount of trading is taken
by young investor. Hence the initial amount for the trading taken by own fund
that is 78.9% shows the highest ratio among all the answer

15.8% of the youngster do job for the amount of investment and 5.4% of
youngster desire to take amount of trading from their parents

Chart 28: Where do you prefer to trade?

SOURCE: - Questionnaire via google

form Meaning
What is Option Trading?
Options trading is a form of investment that involves the buying and selling of
financial contracts called options. Options give the holder the right, but not the
obligation, to buy or sell an underlying asset at a predetermined price within a
specific timeframe.

Call options give the holder the right to buy the underlying asset, while put
options give the holder the right to sell the underlying asset. Traders can profit

84
from options trading by speculating on the direction of the underlying asset's
price movement or by using options as a risk management tool to hedge their
existing positions.

Options trading involves various factors such as strike price, expiration date,
and option premium, which is the cost of the option contract. It requires an
understanding of market dynamics, risk management, and the use of different
options trading strategies to maximize potential returns. The right to buy a
security is known as ‘Call’, while the right to sell is called ‘Put’.

What is Intraday Trading?

Intraday trading, also known as day trading, refers to the practice of buying
and selling financial instruments within the same trading day. Traders aim to
capitalize on short-term price fluctuations and generate profits based on
market volatility. Intraday traders closely monitor price movements, utilize
technical analysis tools, and employ strategies like scalping or momentum
trading to execute quick trades and take advantage of intraday price swings. It
requires careful risk management, market knowledge, and the ability to make
swift decisions in a fast-paced trading environment.

Interpretation-

The above pie chart shows that where youngster prefer to trade as from the
above data 68.4% of youngster prefer to trade in “Options Trading” and
31.6% prefer to trade in “Intraday Trading.”

Both the instrument is more risky as compared to investment but it give more
reward as compared to investment.

85
Chart 29: Do you use technical indicators or price action?

SOURCE: - Questionnaire via google form

Meaning

What Is a Technical Indicator?

Technical indicators are heuristic or pattern-based signals produced by the

price, volume, and/or open interest of a security or contract used by traders
who follow technical analysis.

By analysing historical data, technical analysts use indicators to predict future

price movements. Examples of common technical indicators include
the Relative Strength Index (RSI), Money Flow Index (MFI),
stochastics, moving average convergence divergence (MACD), and Bollinger
Bands

What Is Price Action?

Price action is the movement of a security's price plotted over time. Price
action forms the basis for all technical analyses of a stock, commodity or other
asset charts.

86
Many short-term traders rely exclusively on price action and the formations
and trends extrapolated from it to make trading decisions. Technical analysis
as a practice is a derivative of price action since it uses past prices in
calculations that can then be used to inform trading decisions.

Interpretation-
The above pie chart shows whether the youngster prefer to use “Technical
indicators” or Price action.”

The result from the above pie diagram shows that 52.6% prefer to use price
action whereas, 47.4% prefer to use indicators.

Chart 30: At what age do you started trading?

SOURCE: - Questionnaire via google

form Interpretation-
The above pie chart shows that at what age does youngster started “trading”

73.7% started their trading journey at the of 19 whereas, 15.8% of youngster

started their journey at the age of 20

87
Chart 31: Do you use stop loss?

SOURCE: - Questionnaire via google

form What is a Stop loss?

A stop-loss order is an order placed with a broker to buy or sell a specific

stock once the stock reaches a certain price. A stop-loss is designed to limit an
investor's loss on a security position. For example, setting a stop-loss order for
10% below the price at which you bought the stock will limit your loss to
10%. Suppose you just purchased Indian Railway Finance Corporation (IRFC)
at 100 per share. Right after buying the stock, you enter a stop-loss order for
80. If the stock falls below 80, your shares will then be sold at the prevailing
market price.

Interpretation-

The above pie chart shows whether the youngster use “Stop-Loss order”
during trading session

73.7% of the youngster prefer to use stop-loss order whereas, 26.3% does not
use stop loss order. .By using stop-loss order the young trader can cut their
loss

88
at a desire loss. Not using stop-loss order the risk can be greater in respect desire
loss.

Chart 32: Do you trade?

SOURCE: - Questionnaire via google

form Interpretation-

The above pie chart represent that the weather youngster trade their amount in
stock market by their by their own analysis or by tips or by news

Majority of young trader that is 89.5% of the trader do trade by their own
analysis. This can give an advantage that by trading by their own can help to
gain more experience.

5.3% of the youngster trader their amount which is told by tips. This can be
disadvantage that if the analysis goes wrong than the loss can be huge because
many of the young trader are beginner if they doesn’t known the basic of
risk/reward, money management, risk management then the risk can be huge

89
Chart 33: Minimum quantity do you use in options?

SOURCE: - Questionnaire via google

form Interpretation-
The above pie chart shows what minimum quantity youngster trades in
“Options trading.”

78.9% of the youngster do trade with a minimum quantity of 100 whereas,

21.1% of the youngster do trade with 200 quantity

Position Sizing is important in option trading. Before trade trading with 100
quantity one should know their risk management, risk-to-reward ratio.

90
Chart 34: What is your risk/reward ratio?

SOURCE: - Questionnaire via google form

Meaning

What is the Risk/Reward Ratio?

The risk/reward ratio marks the prospective reward an investor can earn
for every rupees they risk on an investment. Many investors use risk/reward
ratios to compare the expected returns of an investment with the amount of
risk they must undertake to earn these returns. A lower risk/return ratio is
often preferable as it signals less risk for an equivalent potential gain.

Interpretation-

The above pie chart shows what is the risk/reward ratio of youngster while
trading?
68.4% of the youngster prefer to use 1:2 risk/reward ratio whereas, 15.8%
prefer to use 1:4 and 15.8% prefer to use 1:2 risk/reward ratio

91
Chart 35: How much returns do you expect?

SOURCE: - Questionnaire via google

form Interpretation-
The above pie chart shows that how much return youngster expect form trading
on yearly basis

47.4% expect 2% return from trading on yearly basis whereas, 36.8% of

youngster expect 3% on yearly basis

Chart 36: What is your level of experience with trading?

92
SOURCE: - Questionnaire via google form

Interpretation-
The above pie chart what is level of experience in respect of trading among
youngster

68.4% of youngster are beginner in the stock market whereas, 31.6% are
intermediate in respect of trading

Chart 37: Why do you choose trading?

SOURCE: - Questionnaire via google

form Interpretation-

The above pie chart shows why youngster chooses Trading?

The data says that 57.9% of youngster choose because of short term gain
whereas, 26.3% choose trading because of affordability and 15.8% choose
trading because of volatility.

93
 CHAPTER 5: FINDINGS AND CONCLUSION

5.1 Findings

 Most of the youngster prefer “investment” as compared to “Trading.”

 Most of the youngster are beginner in stock market.
 Most of youngster started their “Investment” at the age of 21.
 Most of youngster started their “Trading” at the age of 21.
 The young investor are aware of different investment avenues.
 The young trader prefer to use “price action.”
 The young trader are aware about different trading strategies.
 Most of the youngster use their own fund for “Trading” as well as for
“Investment.”
 Most of the youngster uses “Stop-loss order” in stock as well as trading.

5.2 Conclusion:

As most of the youngster are beginner in the stock market and prefer to enter
the stock market as “Investor” that is 64% of the youngster prefer to do
investing so, the desire risk shall be define because the future are uncertain,
with the proper money management, risk management can sustain as investor
the same thing is applicable to trading because the risk compared to trading is
more as compared to investing.

The reward is too high as compared to investing. As most of the youngster are
beginner in stock market, youngster should do trading on a trial and error basis
that is use different strategies. If the strategies doesn’t work use different
strategies because market behaviour change from time to time. For investment
different ratio that is profit to earnings ratio (P/E), debt to equity ratio (D/E),
and many more shall be known as most that is 59.4% of the youngster uses
P/E ratio for the purpose of investment in stocks. The young investor shall on
monthly or daily basis shall analysis his/her portfolio. For the purpose of
investment in “initial public offering” (IPO) awareness about “red hearing
prospectus” is important as the pie chart shows that majority of the investor
that is 56.3% did not read red hearing prospectus before investing in initial
public offering

94
The red hearing gives valuable information about company fundamental,
policies, industry ratio, regulation, previous year profit and loss and many
more, hence not reading red hearing prospectus is also a risk.

As most of youngster prefer to do investment so most of are satisfied with the

investment. Male are the most active who enter to the stock market as
compared to female.

95
 Bibliography

 https://www.investopedia.com/articles/active-trading/040915/guide-
option-trading-strategies-beginners.asp
 https://scripbox.com/saving-schemes/physical-gold-vs-sovereign-gold-
bond/
 https://groww.in/blog/things-you-must-know-about-rhp
 https://www.investopedia.com/terms/r/redherring.asp
 https://www.indmoney.com/mutual-funds/collection/high-return-mutual-
funds
 https://groww.in/p/technical-analysis
 https://www.bajajfinserv.in/fundamental- analysis#:~:text=There%20are
%20two%20types%20of,brand%20value
%2C%20and%20competitive%20positioning.
 https://www.investopedia.com/terms/s/sortinoratio.asp
 https://www.investopedia.com/terms/d/debtequityratio.asp
 https://www.bajajfinserv.in/exchange-traded- fund#:~:text=An
%20Exchange%20Traded%20Fund%20(ETF,as%20mu tual%20funds
%20and%20stocks.
 https://www.investopedia.com/articles/active-trading/040915/guide-
option-trading-strategies-beginners.asp

96
ANNEXURE:

Name

1. What do you prefer?

 Trading
 Investment

Question related to Investment

1. Gender?
Male
Female
2. Age?
3. Time horizon?
Short term
Long term
4. From where the amount of investment is taken?
Own saving
From parents
Job
Other
5. At what age did you started your
investment? 18
19
20
Other
6. How much amount do you invest?
10000
20000
35000
Other
7. What is your level of experience with investment?
Beginner
Intermediate
Advanced

97
8. Where do you to prefer to invest?
Stocks
Mutual fund
Exchange traded fund (ETF)
9. Do you use Stop-Loss in stocks
Yes
No
10. Do you invest in stock market?
By your own analysis
Tips
News
Told by some-one else
11. Are you aware about different strategies of investment?
Yes
No
12. Are you aware about different ratios of mutual
funds? Yes
No
13. On which ratio do you choose the stocks?
P/E ratio
Industry P/E
Debt to equity
Other
14. On which analysis do you invest in stocks?
Fundamental Analysis
Technical Analysis
15. In Sip mutual fund where do you prefer to
invest? Small cap
Mid cap
Large cap
High return
Other
16. What prevent you to invest?
Risk

98
 Money
Tax
Other
17. Why do you choose investment?
Affordability
Long term
benefit Less
volatile Other
18. Do you read RHF?
Yes
No
19. Are you aware about different investment channels?
Yes
No
20. How much average returns do you expect from
sip? 17%
23%
28%
Other
21. Do you prefer to invest in sovereign gold bond or physical
gold? Sovereign gold bond
Physical gold
22. Do you invest?
Monthly
Quarterly
Yearly
Other
23. How much return do you expect from your portfolio?
5%
10%
12%
Other

Question related to trading

99
Age

Gender

24. From where the amount of trading is

taken? Own saving
From parents
Job
Other
25. Where do you prefer to
trade? Options
Intraday
Other
26. Do you use technical indicators or price action?
Technical indicators
Price taken
27. At what age do you started
trading? 18
19
20
Other
28. Do you use stop-loss?
Yes
No
29. Do you use strategies or indicators?
Strategies
Indicators
30. Do you trade
By own analysis
Tips
News
Other
31. Minimum quantity do you use in options?
100
200

10
0
 500
Other
32. How much returns do you expect
(yearly)? 2%
3%
5%
Other
33. What is your risk/reward?
1:1
1:2
1:4
Other
34. What is your level of experience with
trading? Beginner
Intermediate
Advance
35. Why do you choose trading?
Affordability
Short term gain
Volatile
Other

10
1