SYNOPSIS

On

A STUDY ON INVESTMNET PATTERN, ATTITUTE OF RETAIL INVESTERS IN

HDFC BANK AT DHAR(M.P)

Submitted to

Devi Ahilya University, Indore

For partial fulfillment of the requirement for the Degree of

Master of Business Administration (Full-Time)

Batch 2018-20

Guided by: Submitted by:

Ms.Priyanka Tanwar Moin Khan
MBA 3RD SEM(B.E)
(FINANCE)

IBMR, IPS ACADEMY

Rajendra Nagar, A.B. Road, Indore – 452012 (MP)
 CONTENT

S.No. Contents Page No.

1 Introduction 3
2 Details of Company 4
3 Review of Literature 5-6
4 Rational of study 7
5 Objective of study 8
6 Research Methodology 9
7 Webliography 10
Introduction
Investment is the employment of funds on assets with the aim of earning income or capital
appreciation. Investment means putting your money to work to earn more money or simply
speaking it is sacrificing of money today for future return. Investment! One of the most
successful ways to make financial provisions for the future, where most of the conditions are
uncertain and unpredictable. With well planned investment one can get the satisfaction of safety
and surety in life. We are familiar with investment from very early days of civilization. Initially
the term saving was more popular, and was considered as safest way of making money stable.
Investment may be said as keeping a sum of money aside from the present savings with the view
of earning returns on it. It is done on the cost of sacrifice of present consumption of that part of
money.

INVESTORS

An investor is a person that allocates capital with the expectation of a future financial
return Types Of invest include: equity, debt securities, real estate, currency, commodity, token,
derivatives such as put and call options, futures, forwards, etc. This definition makes no
distinction between the investors in the primary and secondary markets. That is, someone who
provides a business with capital and someone who buys a stock are both investors. An investor
who owns a stock is a shareholder.

 Retail investors are non-professional market participants who generally invest smaller
amounts than larger, institutional investors.
 Individual investors are thought to be less knowledgeable, less disciplined, less skillful,
and more prone to behavioral and emotional errors than professionals.
 Despite their lack of knowledge, the retail investment space is enormous with individuals
investing through retirement accounts, brokerage firms, online trading accounts, and
roboadvisors.

The Retail Investment Market

The retail investment market in the United States is huge. Over 50 million households are retail
investors of some kind and over 50% of households have savings accounts or investment plans
like 401(k)s. And while Americans gravitated to savings accounts and passive investing in the
aftermath of the financial crisis, the number of households which own stocks is rising again.
According to the Federal Reserve’s survey of consumer finances, 54% of households owned
stocks in 2017. Unlike institutional traders, retail traders are more likely to invest in small-cap
stocks because they can have lower price points, allowing them to buy many different securities
in an adequate number of shares to achieve a diversified portfolio.
 Details of Company

HDFC BANK

HDFC Bank was amongst the first to receive an ‘in-principle’ approval from the Reserve Bank
of India (RBI) to set up a bank in the private sector from Housing Development Finance
Corporation Limited (HDFC), in 1994 during the period of liberalization of the banking sector in
India. HDFC India was incorporated in August 1994 in the name of ‘HDFC Bank Limited’.
HDFC India commenced operations as a Scheduled Commercial Bank in January1995.

HDFC India deals in varieties of products like home loan, standard life insurance, mutual fund,
securities, credit cards, etc. HDFC has branch offices in all major cities in India like Calcutta,
Chennai, Delhi, Bangalore, Hyderabad, and Ahmadabad apart from HDFC Mumbai.

History of HDFC Bank

The housing development Finance Corporation Limited (HDFC) was amongst the first to receive
as in principal approval from the Reserve Bank of India (RBI) to set up a bank in the private
sector, as part of the RBI’S liberalization of the Indian Banking Industry.
The bank was incorporated in August 1994 in the name of HDFC Bank Limited, with its
registered office in Mumbai, India. The Bank commenced operation as a scheduled Commercial
Bank in January 1995.

Mission And Vision

The mission of HDFC is to become “a world class Indian bank”, benchmarking themselves
against international standards and best practices in terms of product offerings, technology,
service levels, risk management and audit and compliance. The objective is to build sound
customer franchises across distinct business so as to be a preferred provider of banking services
for target retail and wholesale customer segments and to achieve a healthy growth in
profitability, consistence with the Bank’s risk appetite. The bank is committed to maintain the
highest level of ethical standards, professional integrity, corporate governance and regulatory
compliance. HDFC Bank’s business philosophy is based on five core values: Operational
Excellence, Customer Focus, Product Leadership, People and Sustainability.

Products and services

HDFC Bank provides a number of products and services including wholesale banking, retail
banking, treasury, auto loans, two wheeler loans, personal loans, loans against property,
consumer durable loan, lifestyle loan and credit cards. Along with this various digital products
are Payzapp and Smart BUY.
 LITERATURE REVIEW

Rameshgaava (2012) in his study on Topic ‘Indian Banking Sector’ finds that-

The sector of commercial banks consist of 33 foreign banks, 40 private sector banks, and 27
public sector banks where majority ownership is included by the government. During the reform
period, the financial system permitted the banks to select their lending rates and deposits, and
also authorizes higher disclosure to make sure of large transparency in the balance sheets. As a
result of reforms in the banking sector the share of entire assets of public sector banks was
decreased to 75 percent from 90 percent. In the private sector, the new banks entry diminished
the concentration of assets which further might have made the competition stronger which leads
to more profitability, productivity, and enhancing efficiency.
Dr. Richard Nyangosi (2014) in his study on Topic ‘Digitizing Banking Services’
Internet and mobile technologies of recent years have gained momentum and are impacting the
working of every process including financial services. Financial Service providers including
banks are turning their necks toward the wave of these Technologies. Their findings includes-
Adoption of cell phone banking. Out of the respondents surveyed, 26 percent had adopted cell
phone banking in India out of those who adopted, mostly were young aged. This service too like
any other e-banking services is gaining momentum as customers are finding it easy to bank 24x7.
Using different common E-banking services provided through a cell phone, which included:
balance inquiry, requesting cheque book, know last few transactions, requesting bank statement,
stop payment of cheque, and bill payment.
Adoption of Cyber Banking, the findings indicate that, 67.2 percent of the total sample adopted
Internet Banking and 36.8 did not adopt.
Perceived usefulness of SMS banking, financial products through cell phones have proved to be
useful to both customers and providers in recent times. Customers find it easy, convenient, and
efficient to transact conventional banking services which are non-monetary in nature such as
balance enquiry, transfer of funds, change password etc. through a mobile phone.

Malhotra, Pooja & Singh, (2010)

This study is an attempt to present the present status of Internet banking in India and the extent
of Internet banking services offered by Internet banks. In addition, it seeks to examine the factors
affecting the extent of Internet banking services. The data for this study are based on a survey of
bank websites explored during July 2008. The sample consists of 82 banks operating in India at
31 March 2007. Multiple regression technique is employed to explore the determinants of the
extent of Internet banking services. The results show that the private and foreign Internet banks
have performed well in offering a wider range and more advanced services of Internet banking in
comparison with public sector banks. Among the determinants affecting the extent of Internet
banking services, size of the bank, experience of the bank in offering Internet banking, financing
pattern and ownership of the bank are found to be significant. The primary limitation of the study
is the scope and size of its sample as well as other variables (e.g. market, environmental,
regulatory etc.), which may have an effect on the decision of the banks to offer a wide range of
Internet banking services. The purpose of the study is to help fill significant gaps in knowledge
about the Internet banking landscape in India. The findings are expected to be of great use to the
government, regulators, commercial banks, and other financial institutions, e.g. co-operative
banks planning to offer Internet banking, bank customers and researchers. The bankers as well as
society at large will come to know where the banks lag in terms of adoption of Internet banking
and in providing different products and services. An understanding of the factors affecting the
extent of Internet banking services is essential both for economists studying the determinants of
growth and for the creators and producers of such technologies. Moreover, this paper contributes
to the empirical literature on diffusion of financial innovations, particularly Internet banking, in a
developing country, India.
 RATIONALE OF STUDY

This Study Will Be confined to the Customers of Retail Investors of HDFC bank. This study will
help to analysis the satisfaction level of the customers. It will help to know the factors that
influence the customers to invest in the services of the bank. It is important to know the
necessary changes in services and customer’s feeling about the services. This study will be
useful for the customers to analyze the details of investment and to get certain ideas of investing
in the bank. It also shows the attitude of retail investors to invest in HDFC bank.
 OBJECTIVE OF STUDY

1. To study the awareness of investment pattern among of retail investors at HDFC Bank.

2. To study the investment pattern of retails investors at HDFC Bank.

3. To study the perception and attitude of retail investors at HDFC Bank.

 METHODOLOGY

Research methodology is the process used to collect information and data for the purpose of
making business decisions. The methodology may include publication research, interviews,
surveys and other research techniques.

Research Design
A research design serves as a bridge between what has been established (the research objectives)
and how to accomplish these objectives. In fact, the research design is the conceptual structure
within which research is conducted; it constitutes the blueprint for the collection, measurement
and analysis of data.

Sampling Design

For my survey I have used Convenience sampling technique.

Convenience sampling is a non-probability sampling technique where subjects are selected
because of their convenient accessibility and proximity to the researcher.

SAMPLE SIZE –

Sample size = 100 respond numbers.

 WEBLIOGRAPHY

1. www.google.com
2. www.wikipedia.org
3. http://wiki.answers.com
4. http://www.slideshare.net
5. www.wikipedia.org/inventory
6. www.scribd.com