finance research report
TRANSCRIPT
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A
RESEARCH REPORT
ON
“A STUDY ON INVESTORS’ PERCEPTION TOWARDS
INVESTMENT IN COMMODITY MARKET WITH SPECIAL
REFERENCE TO DERIVATIVES”
Submitted in partial fulfillment for the award of the degree
Master of Business Administration
Chhattisgarh Swami Vivekanand Technical University, Bhilai
Approved By Guided By
Dr. Saket Ranjan Praveer Mr. Rishi Kumar Tripathi Head of the Department (Assistant Professor)
ShriShankaracharya Group of Institutions
Faculty of Management Studies Approved By AICTE
(Managed by ShriGangajali Education Society, Bhilai)
JUNWANI, BHILAI-490 020 (CHHATTISGARH), INDIA
2 Rahul Prakash 08982419919
DECLARATION
I the undersigned solemnly declare that the report of the research work entitled
“A STUDY ON INVESTORS’ PERCEPTION TOWARDS INVESTMENT IN COMMODITY MARKET
WITH SPECIAL REFERENCE TO DERIVATIVES” based on my own work carried out during
the course of my study under the supervision of MR. RISHI KUMAR TRIPATHI.
I assert that the statements made and conclusions drawn are an outcome of
my research work. I further declare that to the best of my knowledge and belief the
report does not contain any part of any work which has been submitted for the award
of MBA degree or any other degree/diploma/certificate in this University or any other
University of India or abroad.
______________________ (Signature of the Candidate) Rahul Prakash Singh
Enrolment No: AM5671
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CERTIFICATE
This is to certify that the work incorporated in the report “A Study On Investors’
Perception Towards Investment In Commodity Market with Special Reference To
Derivatives” a record of research work carried out by Rahul Prakash Singh bearing Roll
No: 5377613082 under my guidance and supervision for the partial fulfillment for the
award of MBA Degree of Chhattisgarh Swami Vivekanand Technical University, Bhilai
(C.G.), India.
To the best of my knowledge and belief the thesis
i) Embodies the work of the candidate him/herself,
ii) Has duly been completed,
iii) Is up to the desired standard both in respect of contents and language for
external viva.
_____________________
Mr. Rishi Kumar Tripathi
(Assistant Professor)
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ACKNOWLEDGEMENT
The project has been made possible through the direct and indirect co-
operation of various persons, for whom I wish to express my appreciation and
gratitude.
First and foremost I express my profound gratitude to my project guide Mr.
Rishi Kumar Tripathi for assigning me an interesting and challenging project.
It is only because of his invaluable guidance and encouragement; I have dared
to venture this task.
I express my deep sense of gratitude towards Professor Saket Ranjan
Praveer, HOD of MBA Department, for consistence guidance and morale
encouragement helped me to complete the project successfully.
Atlast I offer my thanks to all those people and other whose efforts and
contribution had made this possible.
Rahul Prakash Singh
MBA II semester
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TABLE OF CONTENTS
Page no.
Declaration by the Student 2
Certificate from the Supervisor 3
Acknowledgments 4
Chapter 1. Introduction to the study 6
Chapter 2. Literature Review 13
Chapter 3. Research Methodology 20
a. Objectives
b. Research Plan
c. Research design
d. Data Collection
Chapter 4. Data Tabulation, Analysis and Results 23
a. Factor Analysis
b. Regression
Chapter 5. Findings of the study 26
Chapter 6. Recommendations 28
Chapter 7. Limitations 30
Chapter 8. Conclusions 32
References 34
Questionnaire 35
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ABSTRACT
One of the interesting developments in financial market over the last 15 to 20 years
has been the growing popularity of derivatives. In many situations, investors find it
more attractive to trade a derivative on an asset, commodity than to trade asset and
commodity itself. Some commodity derivatives are traded on exchanges.
In this study I have included history of commodity market. Than I have included
commodity market in India. And after that I have discussed the mechanism of trading
in commodity market in India.
In this study I have taken a first look at forward, futures and options contract and
other risk management instruments. Than after I have discuss the main components
of future commodity trading like contract size, what actual margin is and delivery
system etc. There are mainly three types of traders: hedgers, speculators and
arbitrageurs.
In the next I have tried to analyze the trading pattern and investment pattern of
commodity traders and other investors. This I have done through the help of
QUESTIONER, which contains 24 questions.
I have at the end given the research findings and conclusion. And on the basis of my
findings I have given suggestion and recommendation.
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INTRODUCTION Instability of commodity prices has always been a major concern of the producers as
well as the consumers in an agriculture dominated country like India. Farmers’ direct
exposure to price fluctuations, for instance, makes it too risky for many farmers to
invest in otherwise profitable activities. There are various ways to cope with this
problem. Apart from increasing the stability of the market, various factors in the farm
sector can better manage their activities in an environment of unstable prices through
derivative markets. These markets serve a risk -shifting function, and can be used to
lock -in prices instead of relying on uncertain price developments. There are a
number of commodity-linked financial risk management instruments, which are used
to hedge prices through formal commodity exchanges, over -the-counter (OTC)
market and through intermediation by financial and specialized institutions who
extend risk management services These instruments are forward, futures and option
contracts, swaps and commodity linked -bonds. While formal exchanges facilitate
trade in standardized contracts like futures and options, other instruments like
forwards and swaps are tailor made contracts to suit to the requirement of buyers and
sellers and are available over-the counter. In general, these instruments are
classified based on the purpose for which they are primarily used for price hedging,
as part of a wider marketing strategy, or for price hedging in combination with other
financial deals. While forward contracts and OTC options are trade related
instruments, futures, exchange traded options and swaps between banks and
customers are primarily price hedging instruments.
Both forwards and futures contracts have specific utility to commodity producers,
merchandisers and consumers. Apart from being a vehicle for risk transfer among
hedgers and from hedgers to speculators, futures markets also play a major role in
price discovery.
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A derivative as a term conjures up visions of complex numeric calculations,
speculative dealings and comes across as an instrument which is the prerogative of a
few ‘smart finance professionals’. In reality it is not so. In fact, a derivative transaction
helps to cover risk, which would arise on the trading of securities on which the
derivative is based and a small investor can benefit immensely. A derivative security
can be defined as a security whose value depends on the values of other underlying
variables. Very often, the variables underlying the derivative securities are the prices
of traded securities.
Trading In Options
If one buys an option contract he is buying the option, or "right" to trade a particular
underlying instrument at a stated price. An option that gives you the right to
eventually make a purchase at a predetermined price is called a "call" option. If you
buy that right it is called a long call; if you sell that right it is called a short call. An
option that gives you the right to eventually make a sale at a predetermined price is
called a "put" option. If you buy that right it is called a long put; if you sell that right it
is called a short put.
Trading in Call
Suppose a call option with an exercise/strike price equal to the price of the underlying
(100) is bought today for premium Re.1.Profit/ Loss for a Long Call.
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International Journal of Computer Science and Management Research
Volume 1 Issue 5 December 2012 ISSN 2278-733X
At expiry, if the security’s price has fallen below the strike price, the option will be
allowed to expire worthless and the position has lost Re.1. This is the maximum
amount that you can lose because an option only involves the right to buy or sell, not
the obligation. In other words, if it is not in your interest to exercise the option you
don’t have to and so if you are an option buyer your maximum loss is the premium
you have paid for the right. If, on the other hand, the security’s price rises, the value
of the option will increase by Re.1 for every Re.1 increase in the security’s price
above the strike price (less the initial Re.1 cost of the option).
Note that if the price of the underlying increases by Re.1, the option purchaser breaks
even - breakeven is reached when the value of the option at expiry is equal to the
initial purchase price. For our call option, the breakeven price is 101. If the price of
the security is greater than 101, the call buyer makes money.
Profit/Loss for a short call.
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Here profit is limited to the premium received for selling the right to buy at the
exercise price - again Re.1. For every Re.1 rise in the price of the underlying security
above the exercise price the option falls in value by Re.1. Here again, the breakeven
point is 101.
Trading in Put:
Consider that a put option with an exercise/strike price equal to the price of the
underlying (100) is bought today for premium Re.1.
Profit/Loss graph for a Long Put.
International Journal of Computer Science and Management Research Volume 1 Issue 5 December 2012
ISSN 2278-733X
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At expiry the put is worth nothing if the security’s price is more than the strike price of
the option but, as with the long call, the option buyer’s loss is limited to the premium
paid. The breakeven for this option is 99, so the put purchaser makes money if the
underlying security is priced below 99 at expiry.
Profit/Loss graph for a short put.
Here profit is limited to the premium received for selling the right to sell at the strike
price. For every Re.1 falls in the price of the underlying security below the strike price
the option falls in value by Re.1. Here again, the breakeven point is 99.
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OVERVIEW OF COMMODITIES EXCHANGES IN INDIA
Forward Markets Commission (FMC) headquartered at Mumbai is a regulatory
authority, which is overseen by the Ministry of Consumer Affairs and Public
Distribution, Government of India. It is a statutory body set up in 1953 under the
Forward Contracts (Regulation) Act, 1952.
The functions of the Forward Markets Commission are as follows:
(a) To advise the Central Government in respect of the recognition or the withdrawal
of recognition from any association or in respect of any other matter arising out of the
administration of the Forward Contracts (Regulation) Act 1952.
(b) To keep forward markets under observation and to take such action in relation to
them, as it may consider necessary, in exercise of the powers assigned to it by or
under the Act.
(c) To collect and whenever the Commission thinks it necessary, to publish
information regarding the trading conditions in respect of goods to which any of the
provisions of the act is made applicable, including information regarding supply,
demand and prices, and to submit to the Central Government, periodical reports on
the working of forward markets relating to such goods;
(d) To make recommendations generally with a view to improving the organization
and working of forward markets;
(e) To undertake the inspection of the accounts and other documents of any
recognized association or registered association or any member of such association
whenever it considerers it necessary.
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DEFINITION OF DERIVATIVES
Derivatives may be defined as “A security or contract designed in such a way that its
price is derived from the price of an underlying asset”. The price of the derivative
security is not arbitrary. It is linked to the price of underlying asset. Changes in the
price of underlying asset affect the price of derivative security. A true derivative
instrument requires no movement of principal funds. It is this characteristic that
makes them such useful tool to hedge and to take risk. Another definition explains
derivatives, as “Derivatives are financial instruments whose returns are derived from
those of other financial instruments” Their performance depends on how other
instruments perform.
Derivatives have fundamentally changed financial management by providing new tool
to manage risk. What makes derivatives important is not so much the size of the
activity, as the role it plays in fostering new ways to understand, measure and
manages risk. Through derivatives the complex risks that are bound together in
traditional instruments can be teased apart and managed independently and often
more efficiently. A remarkable growth in the derivatives markets has caused many
consequences on the players associated with them. Some got advantages out of it;
other became victims of the adverse results of investing in it.
Factors Affecting Growth of Derivatives:
Growths of derivatives are affected by a number of factors. Some of the important
factors are stated below.
1. Increased volatility in asset prices in financial markets
2. Increased integration of national financial markets with the international
markets
3. Marked improvement in communication facilities and sharp decline in their
costs
4. Development of more sophisticated risk management tools, providing
economic agents, a wider choice of risk management strategies
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EVOLUTION OF DERIVATIVES
1) Forward Trading:
It is not clearly established when and where the first forward market came into
existence. There are reports that forward trade existed in India as far back as
2000BC and in Roman times. Forward trading is believed to have been in existence
in the 12th century English and French fairs. There was forward trade in rice in the
17th century in Japan. The first organized forward market came into existence in late
19th and early 20th century in Kolkatta (jute & jute goods) and in Mumbai (cotton).
2) Futures Trading:
The Dojima rice market can be considered as the first future market in the sense of
an organized exchange. The first futures in the western hemisphere were developed
in United States in Chicago. First they were started as spot markets and gradually
evolved into futures trading. First stage was starting of agreements to buy grain in
future at a predetermined price with the intention of actual delivery. Gradually these
contracts became transferable and during American civil war, it became
commonplace to sell and resell agreements instead of taking delivery of physical
produce. Traders found that the agreements were easier to buy and sell. This is how
modern futures contracts came into being.
3) Options Trading
Options trading are of more recent origin. It is estimated that they existed in Greece
and Rome as early as 400 BC. Options trading in agriculture products and shares
came in US from the 1860s. The first options market was started by Chicago BOARD
OF trade (CBOT) in 1973. Standard maturities, standard strike prices, standard
delivery arrangements were evolved. The risk of default was removed by introducing
a clearinghouse and margin system. The introduction of traded options opened the
way for the evolution of more complex derivatives.
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4) SWAP Trading
The first SWAP transaction took place between World Bank and IBM (International
business machine). They were currency Swaps. Interest rates swaps also
commenced in 1981.
5) Other Derivatives
Other derivatives like Forward Rate Agreements (FRAs), Range forwards, Collars
evolved in second half of 1980s.
TYPES OF DERIVATIVES
One way of classifying derivatives is as,
Commodity Derivatives
These deals with commodities like sugar, gold, wheat, pepper etc. thus, futures
or options on gold, sugar, pepper, jute etc are commodity derivatives.
Financial Derivatives
Futures or options or Swaps on currencies, gilt edged securities, stocks and shares,
stock market indices, cost of living indices etc are financial derivatives.
Another way of classifying Derivative is.
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Futures
A futures contract is a contract to “buy or sell a standard amount of or predetermined
grades of certain commodity (i.e. commodity futures) or financial instruments or
currency (that is financial futures) on a predetermined future day at an agreed prize.”
Forwards
It is “an agreement between two parties to buy or sell a commodity or financial
instrument at a predetermined future date at a prize agreed when the contract is a
made”. The forward contracts are normally traded outside the exchanges. Forward
contracts are very useful in hedging and speculation.
Options
They are the second, most important group of derivative securities, first being futures.
It is “a contract between two parties where by one party acquires the right, but not the
obligation to buy or sell a particular commodity or financial instrument at a specified
date”.
Complex Derivatives
Using futures and options it is possible to build number of complex derivatives. It is
designed to suit the particular needs and circumstances of a client
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FUNCTIONS OF DERIVATIVES
1. Risk Management: I t involves structuring of financial contracts to produce
gains or losses that counter balances the losses or gains arising from
movements in financial prices. Thus risks are reduced and profit is increased
of a financial enterprises.
2. Price Discovery: This represents the ability to achieve and disseminate price
information without price information investors; consumers and producers
cannot make decisions. Derivatives are well suited for providing price
information.
3. Transactional Efficiency: Transactional efficiency is the product of liquidity.
Inadequate liquidity results in high transaction costs. This increases
investment and causes accumulation of capital. Derivatives increases market
liquidity, as a result transactional costs are lowered, and the efficiency in doing
business is increased.
RISK OF DERIVATIVES
Any comment about derivative would be inadequate without a word of caution. There
are 4 inherent risks associated with derivatives. These risks should be clearly
understood before establishing position in derivatives market.
a. Credit Risk: The exposure to the possibility of loss resulting from a counter
party’s failure to meet its financial obligation.
b. Market Risk: Adverse movements in the price of financial asset or commodity.
c. Legal Risk: An action by a court or by a regulatory body that could invalidate
a financial contract.
d. Operations Risk: Inadequate Controls, Human error system failure of fraud.
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A. OBJECTIVES OF THE STUDY
Primary Objective
To analyze the view of Investors towards Commodity Market.
To make understand the process of future commodity trading in India.
Secondary Objectives
To find out the type of risk which are considered by the investors?
To find out the ways through which the investors minimizes their risk
To find out the preferences of Investors in derivatives market
B. RESEARCH PLAN
RESEARCH PLAN
Research Design Descriptive
Research Method Used Survey
Research Technique Used Questionnaire
Sample Unit Investors from Bhilai
Sampling Plan Convenience
Sample Size 50
C. RESEARCH DESIGN
A Research design is purely and simply the framework of plan for a study that guides
the collection and analysis of data. The study is intended to find the investors
preference towards cash market and derivatives. The study design is descriptive in
nature.
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TYPE OF RESEARCH
Descriptive Research
Descriptive study is a fact-finding investigation with adequate interpretation. It is the
simplest type of research and is more specific. Mainly designed to gather descriptive
information and provides information for formulating more sophisticated studies.
Sampling Design
1. Selection of study area: The study area is in Bhilai.
2. Selection of the sample size: 50
Sampling Methods
Convenience method of sampling is used to collect the data from the respondents.
Researchers or field workers have the freedom to choose whomever they find, thus
the name “convenience”. About 50 samples were collected from Bhilai.
D. FORMULATION OF THE QUESTIONNAIRE
Data collection
Primary data – collected through Structured Questionnaire.
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A. Factor Analysis
Rotated Component Matrixa
Component
1 2 3 4 5 6
Y1 .853 .256 -.287 .066 .011 -.220
Y2 .866 -.108 -.254 .145 .204 -.025
Y3 .907 .278 .000 -.014 -.037 .145
X11 .045 .906 -.180 .136 .043 .270
X12 -.348 .819 -.030 .181 .421 .149
X13 -.811 .858 .110 -.184 .253 .163
X14 -.368 .559 .062 .041 .575 -.445
X15 -.334 .688 -.382 .351 -.055 .270
X21 .398 -.063 .741 .248 .325 -.117
X22 .508 -.553 .888 .428 .127 -.145
X23 .608 -.615 .763 .378 -.052 -.074
X24 -.811 .281 -.091 .306 -.032 -.043
X31 .270 -.001 .270 -.581 -.121 .696
X32 .080 -.360 .065 -.446 -.031 .925
X33 .362 -.021 .452 -.528 -.083 .692
X34 .045 -.224 -.314 -.354 .804 -.037
X41 .175 .378 -.551 .761 -.090 .156
X42 .379 -.055 -.368 .786 -.064 -.122
X43 .006 .043 -.695 .689 -.148 -.045
X44 -.348 .325 .352 .539 .282 .563
X51 .431 .103 .283
.730 -.254
X52 .478 .338 .609 .319 .911 .373
X53 .345 .539 .201 -.269 .574 -.136
X54 -.073 -.918 .142 -.258 -.077 .083
Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 7 iterations.
INTERPRETATION
1. X24(Overall increase in wealth) is not reliable because its value is -.091 which
is less than 0.5.
2. Similarly X34 (Low potential loss) is also not reliable because the value is -
0.34.
3. X54 (Advice of Peers) is also not reliable.
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B. Regression
Variables Entered/Removeda
Model Variables Entered
Variables Removed Method
1 X5, X3, X4, X2, X1
b
Enter
a. Dependent Variable: Y1
b. All requested variables entered.
Model Summary
Model R R
Square
Adjusted R
Square
Std. Error of
the Estimate
1 .871a .758 .516 1.209
a. Predictors: (Constant), X51, X31, X41, X21, X11
Coefficients
Model Unstandardized
Coefficients
Standardized
Coefficients
t Sig. 95.0% Confidence Interval
for B
B Std. Error Beta Lower Bound Upper Bound
1
(Constant) .707 1.559 .453 .669 .302 4.715
X11 .483 .576 .498 .838 .440 .0997 1.963
X21 .338 .314 .373 .079 .330 1.144 .468
X31 .230 .212 .303 .081 .329 .316 .776
X41 .119 .627 .106 .189 .857 1.492 1.729
X51 .561 .360 .442 .559 .180 .364 1.486
a. Dependent Variable: Y1
Interpretation:
All the factor X1 Return X2 Risk X3 Outcome X4 Social Influence X5Influence of
Financial advisers have the significant value less than 0.05 so they all have
significant impact on the invest in commodity market.
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FINDINGS
1. Most of the respondents are of the age group 31-40.
2. Majority of the respondents are male.
3. Most of the respondents are graduates followed by Post graduates.
4. Most of the respondents are entrepreneurs and Working Executives.
5. Most of the respondents are having an Income level of 1- 5alcs followed by
respondents having income level 5-10 lacks.
6. Most of the respondents are influenced by friends and relatives followed by
brokers.
7. Most of them are highly favorable towards the cash market.
8. Most of them are highly favorable towards the Futures market.
9. Most of them are favorable towards the Options market.
10. Most of them stayed neutral towards the Commodities market.
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SUGGESTIONS & RECOMMENDATIONS
1) From the demographic factors it is found most of the investors are of age 31-40
and are mostly entrepreneurs & working executives, so the institutions dealing in
Commodity market can take these factors and develop suitable marketing activities
for them and attract them to invest more in Commodity markets.
2) Also it is found that the friends and relatives followed by brokers are the most
influential persons to pull the investors into the Commodity market. So the Institutions
should develop some referral programs and rewards for referrals, so that the existing
investors can actively bring in more number of investors. Also brokers should be duly
acknowledged.
3) Most of the respondents should positive sign in investing into Derivatives market,
since most of them preferred short term investments and instruments leading to
wealth maximization. So the Institutions dealing in Derivative market must develop
products which suit the above said requirements of the investor.
4) Most of them felt that they want to reduce their market risk and they also said that
they follow the ideas given by the financial experts and tips given in the newspaper to
reduce their risk. So the institutions should keep informed about their institutions
developments to these groups by which it can reach the investors in a positive way.
5) Investors felt that high margin in Commodity Market segment was the main barrier
for investing, so the Institutions should work on this to reduce the margin.
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LIMITATIONS OF THE STUDY
Understanding the nature of the risk is not adequate unless the investor or
analyst is capable of expressing it in some quantitative terms. Expressing the
risk of a stock in quantitative terms makes it comparable with other stocks.
Measurement cannot be assured of cent percent accuracy because risk is
caused by numerous factors such as social, political, economic and
managerial efficiency.
Time was a limiting factor.
Only those investors who deal in Commodity markets are considered.
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CONCLUSION
In the current scenario, investing in Commodity markets is a major challenge ever for
professionals. Derivatives acts as a major tool for reducing the risk involved in
investing in Commodity markets for getting the best results out of it. The investors
should be aware of the various hedging and speculation strategies, which can be
used for reducing their risk. Awareness about the various factors of Commodity
Market can help investors to reduce risk and increase profits. Though the Commodity
market is subjected to high risk, by using derivatives the loss can be minimized to an
extent
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References:
1. Marketing Research by G C Beri- third edition – © 2000, Tata McGraw-Hill
Publishing Company Ltd.
2. Marketing Research by Rajendra Nargundkar- 2nd edition 2006, Tata
McGraw-Hill Publishing Company Ltd
3. www.indiabulls.com
4. www.nseindia.com
5. www.stockedge.com
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QUESTIONNAIR USED
I am a student of Faculty of Management Studies, Shri Shankaracharya Group of Institutions, Bhilai.
As a part of my curriculum I am conducting a research on Investor’s Perception towards invest in
Commodity Market. I would be grateful to you for providing candid responses.
1. The following questions are about your decision to invest in a Commodity Market
Please choose the most appropriate option Strongly
Disagree <Neutral>
Strongly
Agree
1-1 I want to invest in a Commodity Market rather than Stock Market 1 2 3 4 5 6 7
1-2 My intentions are to invest in a Commodity Market rather than in Share
Market 1 2 3 4 5 6 7
1-3 If I could, I would like to invest in Commodity Market 1 2 3 4 5 6 7
2. The following questions are about the returns you perceive in investing in a Commodity Market
Please choose the most appropriate option Strongly
Disagree <Neutral>
Strongly
Agree
2-1 Investment in Commodity Market will be beneficial to me 1 2 3 4 5 6 7
2-2 By investing in Commodity Market I can earn more money than by investing in
Share Market 1 2 3 4 5 6 7
2-3 Investment in Commodity Market will give me higher returns 1 2 3 4 5 6 7
2-4 Investment in Commodity Market will increase my overall wealth 1 2 3 4 5 6 7
2-5 Investment in Commodity Market will be of good value 1 2 3 4 5 6 7
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3. The following questions are about the risk you perceive in investing in a Commodity Market
Please choose the most appropriate option Strongly
Disagree <Neutral>
Strongly
Agree
3-1 It is risky to invest in a Commodity Market 1 2 3 4 5 6 7
3-2 I may lose substantial amount of money by Investing in a Commodity Market 1 2 3 4 5 6 7
3-3 My savings would be in danger if I invest them in a Commodity Market 1 2 3 4 5 6 7
3-4 The potential for loses are low in Commodity Market 1 2 3 4 5 6 7
4. The following questions are about the outcomes you perceive in investing in Commodity Market
Please choose the most appropriate option Strongly
Disagree <Neutral>
Strongly
Agree
4-1 By investing in a Commodity Market, I will become wealthy 1 2 3 4 5 6 7
4-2 By investing in a Commodity Market, I can manage my future well 1 2 3 4 5 6 7
4-3 By investing in Commodity Market, I can afford things meant for rich people 1 2 3 4 5 6 7
4-4 By investing in Commodity Market Instrument, I will lose my wealth 1 2 3 4 5 6 7
5. The following questions are about the influence of your friends and family members on your decision to invest in Commodity Market
Please choose the most appropriate option Strongly
Disagree <Neutral>
Strongly
Agree
5-1 My parents influence my decision to invest in Commodity Market 1 2 3 4 5 6 7
5-2 I prefer the advice of my friends on investing in Commodity Market 1 2 3 4 5 6 7
5-3 Most people who influence my decision think that I should invest in
Commodity Market 1 2 3 4 5 6 7
5-4 My peers advise me to invest in a Commodity Market 1 2 3 4 5 6 7
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6. The following questions are about the influence of your financial advisor on your decision to invest in Commodity Market Instrument
Please choose the most appropriate option Strongly
Disagree <Neutral>
Strongly
Agree
6-1 For investment decisions, I consult financial planners (e.g., CA) 1 2 3 4 5 6 7
6-2 Financial Planners influence my decision to invest in Commodity Market 1 2 3 4 5 6 7
6-3 Financial Planners play a significant role in my decision to invest in Commodity
Market 1 2 3 4 5 6 7
6-4 I prefer the advice of financial planners to invest in Commodity Market 1 2 3 4 5 6 7
7. Please provide the following details which would help in supporting our research. The information will be kept strictly confidential and for the purpose of analysis only. Please tick the appropriate option.
7-1 Name
7-2 Age <20 20-29 30-39 ≥40
7-3 Gender Male Female
7-4 Annual Income <1 Lakh 1-2.99 Lakhs 3-4.99 Lakhs ≥5 Lakhs