The Leading U.S. Companies For Investor Relations Announced Today By Institutional Investor

Posted on February 10, 2011 by Admin

New York, NY (PRWEB) March 13, 2006

Institutional Investor today announced the leading companies for investor relations in the U.S., across 41 industry sectors, showing the differential views of the sell and buy side.

This year’s IR rankings are based on the views of 1,127 buy-side analysts, portfolio managers and sell-side analysts representing the leading securities firms and institutional investors. Individuals were asked to nominate companies across the most important attributes used to evaluate the effectiveness of investor relations communications. According to investors, the most important attribute is the transparency and quality of financial disclosures. The two next most important are the credibility, integrity and candor of the IR team, followed by access to senior management.

A selection of the winners are shown in the table attached to this press release. To see the top three winners for each sector and for further information, please visit www.institutionalinvestor.com The IR rankings are an excerpt of an annual review of U.S. equities that analyzes key market trends which will be examined in the forthcoming release of the U.S. Investor Relations Market Report.

Contact:

Esther Weisz

(212) 224 3307

###



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How To Find Investors To Finance Any Business Deal

Posted on February 9, 2011 by Admin

How To Find Investors To Finance Any Business Deal

How To Make Investors Line Up And Practically Beg You To Take their Money To Finance Your Business Or Project in 7 days! 100% GUARANTEED!

 

By Dr Godwin King

There may come a time that you need OPM (Other People’s Money) to finance the business deals you do. You may need to find investors from time to time, so it’s good to know how to find them if you need to.

 

Where Do You Find Investors?

You can find investors absolutely everywhere, except possibly prison and a few other not so nice places.

An investor can be a real estate broker, stockbroker, doctor, merchant, lawyer, manufacturer, family member, heir, etc. Finding an investor, though, can be done many ways. You’ve got something working for you that is very important. You have the fact that the investor is looking as hard (maybe harder) for you, as you are for him/her.

Time is money and the longer they wait for a deal to find them, the more money they’re losing. The best place to find these investors and have your opportunity ad be seen is in the advertising/classified/business pages of financial and local newspapers.

There are two advantages to using newspaper ads.

1. Newspapers reach lots of interested risk capital investors AT ONCE!

2. Investors respond quickly to ads that peak their interest. A well-written ad placed properly in the right publication will put you in touch with risk capital investors very quickly.

 

DAY#1:  Write The Ad To Get Investors To Contact You.

Here are some rules for creating your ad.

1. Describe the kind of business you are working with. Some investors are only looking for certain deals, no matter how much profit they make.

2. Specify the amount of money you need. Ask for a little more than you really need just in case unexpected things come up.

 

3. Describe what kind of return on investment they can expect.

 

By including these items in your ad, you will pre-screen the people responding. People that have no interest in your deal won’t respond to your ad.

This is because your ad does two things:

1. The ad makes sure the inquiries you get are from people who are interested in the business you are dealing with, and they have the amount of money you need.

2. It lets the potential investors know what they are most interested in, which is what they can possibly get from this investment.

An ad written in this fashion is what you should run. It gives the full idea in just a few words. This way you waste little time in weeding out the looky-loos and tire kickers. (Every business opportunity ad will get some of those.)

 

IF YOU CANT WRITE YOUR AD, WHERE CAN YOU GET FREE AD SERVICE  TO AID YOU?

If you ever need help writing an ad that ‘d enable you to attract as many prospective investors as you ‘d need, you can get a free advert review service at http://u-m-x.com

Place it in the business and/or financial sections.

 

CAUTION: When you write your ad keep in mind that you’re not dealing with a bunch of idiots. These investors didn’t get surplus investment capital by being stupid.

Whatever you do, avoid statements such as:

You’ll get rich quick … Fantastic returns … World’s greatest opportunity… Can’t fail… Etc.

These statements simply turn investors off and make them go far away.

I suggest you first use classified ads to save money. The larger display ad will generally get a better quality of replies than those from classified ads. Also, use display ads if you need larger amounts of money. The problem is that a display ad can cost ten times more than a classified ad.

 

DAY#2:  Run The Advert In Relevant Media

Where Do You Run The Ad?

Now we need to find out what newspapers are best to use.

Stay with local papers if you need the investor to give both capital and participation, then you stay with the nearest large newspaper. If you just need the money then you can go anywhere.

Try smaller papers if you don’t need too much money (under ,000).

If you just want capital investment from the investor(s), then Try any other regional financial newspapers. This way you’ll reach a much larger potential investor market in other areas. You might have to go meet them or have them come to meet you.

If you need a very large amount of money…,000,000 or more…then use nationwide financial newspapers and magazines. Start in your own area and spread out if you need more.

Here’s a website that lists all the newspapers all around the world. It even lists them by category. NewsLink -http://www.newslink.org/

 

You Just Need ONE Investor.

Most of the time you only need to find one investor. You’re looking for QUALITY inquiries. That’s what counts. You don’t care about the quantity of replies you get.

How often do you run the ad? Run the ad just once in the publication(s) you choose. Remember, you’re looking for one investor in most cases. You’ll be weeding through the initial replies before you’ll need more.

Reply to the inquiries right away. Speed is the key. Capitalize on people’s interest and curiosity while it’s high before they find something else to invest in. When you’ve run out of prospects, and then run the ad again.

Just don’t keep running the ad everyday. When potential investors continuously see the ad, they think something must be wrong with the deal since it’s being advertised for such a long time.

 

NOTE: if your ad is written by a professional copywriter in a provocatively compelling fashion, I can assure you that running the advert once may get you more prospective investors literally lining up and begging you to take their money , more than you ‘d ever need!

 

DAY#3: Handle The Inquires That Come In.

You’re going to get inquiries to your ad. You might get things like:

1.      A postcard with a couple of words written on it, SEND DETAILS, it might be barely understandable.

2.      A desk memo from some small company that was a promotional gift.

3.      A letter typed beautifully on company letterhead.

4.   telephone calls etc

 

You are going to have the urge to only respond to the nicely typed letters and forget all the rest. PLEASE FIGHT THIS URGE!!

Business people often just write one word and two word letters. That’s all that is really needed.

• If you get phone numbers, then call them for an appointment. Just get the appointment, no selling on the phone.

• If you get mailing addresses, then send a letter asking for an appointment.

You will give them the details when you meet.

 

Reply the same day they arrive. If you wait, who knows what you might miss out on?

Be very businesslike when contacting them. Say something like:

“Thank you for your interest. I am looking to establish an investor relationship for my business and I am in the process of interviewing several investors who have inquired. Rather than go into details over the phone (or letter), I’d like to set up a time to meet with you and talk personally. Would Tuesday at 9:00 AM be good or would Thursday at 2:00 PM be better?”

By asking the last question it gives them the feeling of having a choice, but to you it doesn’t matter which they choose. It just means that you have an appointment.

If neither is good for them, they’ll offer another time. If the time they want to meet with you isn’t good for you, then say “no” and counter offer with another time. This way they realize that you’re professional and can take them or leave them. You’re someone worth seeing and you have a very good deal for the right person.

DAY#4: Meet With The Investors.

Be prepared to present your deal to the investor in simple language so they’ll understand it. This will help to build their confidence in you and-in the deal. Practice what you’re going to say; these investors are probably very sharp. You need to cover all the major points and be able to answer their questions.

Be prepared to present your deal to the investor in simple language so they’ll understand it. This will help to build their confidence in you and-in the deal. Practice what you’re going to say; these investors are probably very sharp. You need to cover all the major points and be able to answer their questions.

Set up the first meeting at a neutral location, some place where neither of you will be interrupted with phone calls or visitors. Make sure that you’re presenting to the main decision maker(s). Why waste your time talking to the wrong person or only to some of the right people? You want the people who ULTIMATELY will decide. Be sure that you have enough time to fully explain the business project/proposal and to answer any questions. If it’s lunch or dinner, be sure YOU pick up the first check. This Is Very Important.

 

 

DAY#4:  Give Provocatively Compelling Presentation

The goals of your presentation are:

• To get the investor’s confidence in the business project/proposal and your ability to manage it.

• To make the investment attractive to him.

• To prove the possibilities of profit are above average.

 

After giving your presentation there should be definite visible signs of enthusiastic interest from the investor(s). If you don’t sense that there is, then end the meeting right there. You have too many potential investors out there to waste much time trying to convince someone too hard.

 

If you feel there is enthusiasm, then it’s your turn to ask questions.

1. Ask what is his/her/their background?

2. Can they show proof that they have the capital before you both go into serious negotiations?

3. What type of ventures do they like to invest in?

4. What was the last deal they didn’t invest in and why?

5. What was the last deal that they did invest in and why?

 

6. Can they give examples of past deals they’ve done?

7. Is there any conflict with their present investments and this deal?

 

The investor(s) will respect you for asking these questions and will understand that you’re a responsible business person, the kind they want to do business with and invest money on. If he/she gets annoyed or refuses to answer, end the meeting and go to your next prospect. Forget about people who are just wasting your time.

 

DAY#5: Keep Meeting, Interviewing And Assessing Prospects Until You Meet the Right Investor

It is just a matter of time before you get the right investor(s) that would buy into your project and be willing to provide all the investment capital you need to achieve you goal.

 

DAY#6: Sign Agreement with Investors That Buys Into Your Project

DAY#7: Execute contract, get money and start achieving your project or business goal.

 

If you enjoyed this report, you ‘d like other reports by the author for more ideas to help you achieve your financial goals faster than you ever thought possible. You can download 10 different reports and ebooks written by Dr Godwin King free of charge at http://u-m-x.com

 

ABOUT THE AUTHOR: Dr Godwin King is The world’s #1 breakthrough advert copy writer, marketing consultant and revenue and profit boosting expert/author. To get your advert   for investors written by a professional breakthrough ad copy writer, you can visit http://u-m-x.com to receive free advert review service.

He can help you achieve all your sales revenue goals or financial goals faster than you can ever imagine via resources at http://unlimitedmoneysystem.net , http://ideasandsolution.net and http://unlimitedmoneysystem.info

You can get free advert review service from him at http://u-m-x.com .


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INVESTORS PREFERENCE IN COMMODITIES MARKET

Posted on February 9, 2011 by Admin

INVESTORS PREFERENCE IN COMMODITIES MARKET

 

                                                         * K.Logeshwari

                                                                             ** V.Ramadevi

ABSTRACT

The study entitled “Investors preference in commodities market” was conducted in Coimbatore KARVY STOCK BROKING LIMITED. The study was undertaken to know the preference of the investors towards various Investment avenues in relation to commodity market.  The sample from the population is taken based on regular customers to the Coimbatore Karvy. The expectations of the investors are quite high. Many expect high rate of return for further investment through commodity market. The study also examines the phenomenal growth in commodity market which is ten times greater than the share market. The study reveals that the commodity market is in a nascent stage in Coimbatore.

            The investment avenues of individual investors depend mainly on annual income as well as risk taking capacity of the individuals. Regularity in investing, percentage of savings also has a major impact in choosing the investments. The study on investor’s preference in commodity market also gives an idea of the investor’s choice based on returns, risk and their awareness in choosing the market particularly in conducting appropriate training sessions and seminars frequently to the clients of Karvy Commodity market in Coimbatore at Karvy Commodity Trade Limited.

 

INTRODUCTION

 

A commodity futures contract is a type of derivative, or financial contract, in which two parties agree to transact a set of financial instruments or physical commodities for delivery at a particular price at later date. But participating in the commodity market does not necessarily means that you will be responsible for receiving or delivering large inventories of physical commodities. Buyers and sellers in the futures market primarily enter into futures contracts to hedge risk or speculate rather than delivery (which is the primary activity of the cash/spot market). That is the reason commodities are used as financial instruments by not only producers and consumers but also speculators.

——————————————–

* Lecturer, Department of management studies and Research, Karpagam University  , Coimbatore – 641021 ,Tamilnadu

* * Lecturer, Department of management studies and Research, Karpagam University  , Coimbatore – 641021, Tamilnadu

 

 

Commodity market is extremely liquid, risky and complex by nature. Futures   market is centralized market place for buyers and sellers from around the world who meet and enter into commodity futures contracts. Pricing is mostly is based on an open cry system, or bids and offers that can be matched electronically. The commodity contract will state the price that will be paid and the date of delivery. Almost all futures contracts end without the actual physical delivery of commodity.

 

Commodity prices are generally less volatile than the stocks. Therefore it’s relatively safer to trade in commodities. But the volume being traded in commodities is much less than the stock market. This is because of the two reasons that the investors are less aware about the commodities market and their risk perception. Hence many studies are conducted to know the investors’ preference in commodities market.

 

STATEMENT OF THE PROBLEM

   Commodity market has been established for the benefit of small and large investors. But the level of investment in this trading is far lesser than the other modes of investors. The need of the hour is the proper guidelines and education to all investors.. An investment in commodity market is though less risky than that of the stock market. This is because, the investors are less aware about commodities market. Hence the purpose of the study is to assess the knowledge and preference of the investors in the commodity trading.

 OBJECTIVES OF THE STUDY

 PRIMARY OBJECTIVE

v     To study the investors’ preference towards commodities market.

  SECONDARY OBJECTIVE

v     To identify the investment patterns of investors.

v     To know whether the investor’s opinion about international commodities market affects the national trading activity.

v     To identify the source of information about commodities market.

v     To profile the commodities investors.

 SCOPE OF THE STUDY

 

v     Understanding the investor’s risk towards commodity market.

v     The study helps us to know about the Investor’s preference towards commodity market.

 RESEARCH METHODOLOGY

         Research Design                                      : Descriptive Research

         Data Source                                             : Primary and Secondary Data

         Primary Data Collection                          : Survey Method

         Primary Data Collection Instrument        : Questionnaire

        Sampling Methods & Technique              : Non-Probability Method, Convenience 

                                                                Sampling Technique

         Sample size                                               : 150 respondents

         Pilot study                                                : 10 respondents

 

TOOLS USED

 PERCENTAGE ANALYSIS

 

The tool used for the sampling technique is percentage analysis. It is used to determine the percentage of the samples to be selected from the entire population.

 CHISQUARE TEST

 

 The chi-square test is an important test amongst the several tests of significance. Chi-Square, symbolically written as  (Pronounced as
Ki-Square), is a statistical measure used in the context of sampling analysis for comparing a variance to a theoretical variance.

 

 

       =         

 

 

where

            Oij = Observed frequency of the cell in ith row and jth column.

            Eij = Expected frequency of the cell in ith row and jth column.

 

The statistical tool is used for the analysis part of the study is chi-square test. It is a statistical measure used in the context of sampling analysis foe comparing a variance to a theroretical variance.  It can be used in calculations to test for statistical significance of estimated parameters and to measure goodness of fit of individual equations in a model.

 

 LIMITATIONS OF THE STUDY

Though utmost care was taken to do the research, some of limitations viz.,

 

v     The study is limited to Coimbatore city.

v     It is conducted only with the investors of KAVRY com trade private limited.

v     The data collected from the samples might not be completely appropriate.

v     The respondents were less interested in answering the questionnaire, as they felt that it was an interruption to their regular work.

v     All respondents were not very much open in giving their details. As the questionnaire contains details of the trader’s income the trader might not have given the correct information for their own savings (for tax problem).

 

 

 

 

 

 

 

 

 

 


RESULTS AND DISCUSSIONS

 

 

 

Ø It is found that 86%of the respondents belong to male gender and 68% of the respondents are married.

Respondents to the extent of 40% belong to the age group of 26 years to 50 years.

Ø About 48% of the respondents are postgraduates.

Ø About 46% of the respondents are salaried.

Ø The study reveals that 52% of the respondent’s annual income ranges between Rs. 1, 00,000 to Rs 5, 00,000.

It is found that 42%of the respondents specify Gold in Bullion market.

Ø It is found that 48% of the respondents specify Peeper in Agri-commodity market

It is found that 44% of the respondents specify Zinc in Metals.

Ø About 54% of the respondents invest 25 % to 50% of their income.

About 62% of the respondents will definitely recommend others to enter in to the commodity market.

Ø It is found that 38 %of the respondents were referring friends as their source of information.

Ø About 36% of the respondents will rank 2nd & 3rd  place in their specialty of trading in commodity market as Price Hedging

Ø About 38% of the respondents rank 3rd place in Regulated market.

Ø About 46% of the respondents rank 1st place in High return.

Majority 62% of the respondents do their trading daily.

Ø About 56% of the respondents aware about the commodity market to some extent.

Ø About 52% of the respondents are been satisfied with their commission charges paid.

Ø Majority 66% of the respondents are been traded up to the margin money below    5, 00,000.

Ø About 40% of the respondents are satisfied with their level of returns.

Ø It is found that 97% of the respondents agree that international market has got an impact over national market.

Ø About 70% of the respondents’ High risk is involved in the commodity market.

Ø Majority 82% of the respondents will also invest in other modes of investment.

Ø Respondents to the extent of 50% invest in the shares.

Ø Out of their past experience respondents would take to control risk by 36% while at the time of buying and selling the commodities.

 

 CONSIDERED RECOMMENDATIONS

 

 

Ø The company can rise up its investments by educating the public about the benefits that they can reap from the commodities market through awareness programs, advertisements.

Ø Since most of the investors are those who trade in share market and it is very easy to make them invest in higher margin commodities.

Ø The findings reveal that majority of the investors are within the age group of 26-35 years, so the company can provide their customers some additional assistance like daily trading tips, daily positions, and general news for doing a better trading with the commodities market.

Ø The investors in Coimbatore are not much aware of commodity market and the commodities being traded in the commodity market. So, awareness about the commodity market and the commodities being traded.

Ø A regular investor’s friendly seminar can be organized to suit the timings of the investing public. Seminars can be in the form of interactive sessions, arranged at frequent intervals.

Ø The newsletters published by Karvy must include the suggestions provided by the research team to help the investors to better understand the tactics of trading in commodity market. Hence newsletter can be published for guidance.

Ø Workshops can be conducted in villages for the farmers to educate them about commodity market.

 

 

 

 

 CONCLUSION

Commodities market provides a platform for the investors as well as hedgers to protect their economic interests as well as increase their investible wealth.  However, there is a need to profile the investors in this market with their preferences and pattern.  This will help the commodity trading companies to focus their offerings to suit the needs of the commodity investors.  Also, the companies should understand the expectations of their clients and their level of satisfaction.  With this in mind, a study was conducted through the Karvy Comtrade Limited, where a sample of 150 respondents was drawn for study.  A structured questionnaire with the relevant indicators was administered to primarily identify the investors’ preference towards commodities market.  The study also intended to identify the investment patterns of investors, to know the investors’ opinion on the effect of international commodities market over the national trading activity, to identify the source of information about commodities market, and to profile the commodities investors.

 

The investors are not fully aware of the functioning of commodity market and they draw market information from Print media, Web media and Peer groups.

 

INVESTORS PREFERENCE IN COMMODITIES MARKET

 

                                                         * K.Logeshwari

                                                                             ** V.Ramadevi

ABSTRACT

The study entitled “Investors preference in commodities market” was conducted in Coimbatore KARVY STOCK BROKING LIMITED. The study was undertaken to know the preference of the investors towards various Investment avenues in relation to commodity market.  The sample from the population is taken based on regular customers to the Coimbatore Karvy. The expectations of the investors are quite high. Many expect high rate of return for further investment through commodity market. The study also examines the phenomenal growth in commodity market which is ten times greater than the share market. The study reveals that the commodity market is in a nascent stage in Coimbatore.

            The investment avenues of individual investors depend mainly on annual income as well as risk taking capacity of the individuals. Regularity in investing, percentage of savings also has a major impact in choosing the investments. The study on investor’s preference in commodity market also gives an idea of the investor’s choice based on returns, risk and their awareness in choosing the market particularly in conducting appropriate training sessions and seminars frequently to the clients of Karvy Commodity market in Coimbatore at Karvy Commodity Trade Limited.

 

INTRODUCTION

 

A commodity futures contract is a type of derivative, or financial contract, in which two parties agree to transact a set of financial instruments or physical commodities for delivery at a particular price at later date. But participating in the commodity market does not necessarily means that you will be responsible for receiving or delivering large inventories of physical commodities. Buyers and sellers in the futures market primarily enter into futures contracts to hedge risk or speculate rather than delivery (which is the primary activity of the cash/spot market). That is the reason commodities are used as financial instruments by not only producers and consumers but also speculators.

——————————————–

* Lecturer, Department of management studies and Research, Karpagam University  , Coimbatore – 641021 ,Tamilnadu

* * Lecturer, Department of management studies and Research, Karpagam University  , Coimbatore – 641021, Tamilnadu

 

 

Commodity market is extremely liquid, risky and complex by nature. Futures   market is centralized market place for buyers and sellers from around the world who meet and enter into commodity futures contracts. Pricing is mostly is based on an open cry system, or bids and offers that can be matched electronically. The commodity contract will state the price that will be paid and the date of delivery. Almost all futures contracts end without the actual physical delivery of commodity.

 

Commodity prices are generally less volatile than the stocks. Therefore it’s relatively safer to trade in commodities. But the volume being traded in commodities is much less than the stock market. This is because of the two reasons that the investors are less aware about the commodities market and their risk perception. Hence many studies are conducted to know the investors’ preference in commodities market.

 

STATEMENT OF THE PROBLEM

   Commodity market has been established for the benefit of small and large investors. But the level of investment in this trading is far lesser than the other modes of investors. The need of the hour is the proper guidelines and education to all investors.. An investment in commodity market is though less risky than that of the stock market. This is because, the investors are less aware about commodities market. Hence the purpose of the study is to assess the knowledge and preference of the investors in the commodity trading.

 OBJECTIVES OF THE STUDY

 PRIMARY OBJECTIVE

v     To study the investors’ preference towards commodities market.

  SECONDARY OBJECTIVE

v     To identify the investment patterns of investors.

v     To know whether the investor’s opinion about international commodities market affects the national trading activity.

v     To identify the source of information about commodities market.

v     To profile the commodities investors.

 SCOPE OF THE STUDY

 

v     Understanding the investor’s risk towards commodity market.

v     The study helps us to know about the Investor’s preference towards commodity market.

 RESEARCH METHODOLOGY

         Research Design                                      : Descriptive Research

         Data Source                                             : Primary and Secondary Data

         Primary Data Collection                          : Survey Method

         Primary Data Collection Instrument        : Questionnaire

        Sampling Methods & Technique              : Non-Probability Method, Convenience 

                                                                Sampling Technique

         Sample size                                               : 150 respondents

         Pilot study                                                : 10 respondents

 

TOOLS USED

 PERCENTAGE ANALYSIS

 

The tool used for the sampling technique is percentage analysis. It is used to determine the percentage of the samples to be selected from the entire population.

 CHISQUARE TEST

 

 The chi-square test is an important test amongst the several tests of significance. Chi-Square, symbolically written as  (Pronounced as
Ki-Square), is a statistical measure used in the context of sampling analysis for comparing a variance to a theoretical variance.

 

 

       =         

 

 

where

            Oij = Observed frequency of the cell in ith row and jth column.

            Eij = Expected frequency of the cell in ith row and jth column.

 

The statistical tool is used for the analysis part of the study is chi-square test. It is a statistical measure used in the context of sampling analysis foe comparing a variance to a theroretical variance.  It can be used in calculations to test for statistical significance of estimated parameters and to measure goodness of fit of individual equations in a model.

 

 LIMITATIONS OF THE STUDY

Though utmost care was taken to do the research, some of limitations viz.,

 

v     The study is limited to Coimbatore city.

v     It is conducted only with the investors of KAVRY com trade private limited.

v     The data collected from the samples might not be completely appropriate.

v     The respondents were less interested in answering the questionnaire, as they felt that it was an interruption to their regular work.

v     All respondents were not very much open in giving their details. As the questionnaire contains details of the trader’s income the trader might not have given the correct information for their own savings (for tax problem).

 

 

 

 

 

 

 

 

 

 


RESULTS AND DISCUSSIONS

 

 

 

Ø It is found that 86%of the respondents belong to male gender and 68% of the respondents are married.

Respondents to the extent of 40% belong to the age group of 26 years to 50 years.

Ø About 48% of the respondents are postgraduates.

Ø About 46% of the respondents are salaried.

Ø The study reveals that 52% of the respondent’s annual income ranges between Rs. 1, 00,000 to Rs 5, 00,000.

It is found that 42%of the respondents specify Gold in Bullion market.

Ø It is found that 48% of the respondents specify Peeper in Agri-commodity market

It is found that 44% of the respondents specify Zinc in Metals.

Ø About 54% of the respondents invest 25 % to 50% of their income.

About 62% of the respondents will definitely recommend others to enter in to the commodity market.

Ø It is found that 38 %of the respondents were referring friends as their source of information.

Ø About 36% of the respondents will rank 2nd & 3rd  place in their specialty of trading in commodity market as Price Hedging

Ø About 38% of the respondents rank 3rd place in Regulated market.

Ø About 46% of the respondents rank 1st place in High return.

Majority 62% of the respondents do their trading daily.

Ø About 56% of the respondents aware about the commodity market to some extent.

Ø About 52% of the respondents are been satisfied with their commission charges paid.

Ø Majority 66% of the respondents are been traded up to the margin money below    5, 00,000.

Ø About 40% of the respondents are satisfied with their level of returns.

Ø It is found that 97% of the respondents agree that international market has got an impact over national market.

Ø About 70% of the respondents’ High risk is involved in the commodity market.

Ø Majority 82% of the respondents will also invest in other modes of investment.

Ø Respondents to the extent of 50% invest in the shares.

Ø Out of their past experience respondents would take to control risk by 36% while at the time of buying and selling the commodities.

 

 CONSIDERED RECOMMENDATIONS

 

 

Ø The company can rise up its investments by educating the public about the benefits that they can reap from the commodities market through awareness programs, advertisements.

Ø Since most of the investors are those who trade in share market and it is very easy to make them invest in higher margin commodities.

Ø The findings reveal that majority of the investors are within the age group of 26-35 years, so the company can provide their customers some additional assistance like daily trading tips, daily positions, and general news for doing a better trading with the commodities market.

Ø The investors in Coimbatore are not much aware of commodity market and the commodities being traded in the commodity market. So, awareness about the commodity market and the commodities being traded.

Ø A regular investor’s friendly seminar can be organized to suit the timings of the investing public. Seminars can be in the form of interactive sessions, arranged at frequent intervals.

Ø The newsletters published by Karvy must include the suggestions provided by the research team to help the investors to better understand the tactics of trading in commodity market. Hence newsletter can be published for guidance.

Ø Workshops can be conducted in villages for the farmers to educate them about commodity market.

 

 

 

 

 CONCLUSION

Commodities market provides a platform for the investors as well as hedgers to protect their economic interests as well as increase their investible wealth.  However, there is a need to profile the investors in this market with their preferences and pattern.  This will help the commodity trading companies to focus their offerings to suit the needs of the commodity investors.  Also, the companies should understand the expectations of their clients and their level of satisfaction.  With this in mind, a study was conducted through the Karvy Comtrade Limited, where a sample of 150 respondents was drawn for study.  A structured questionnaire with the relevant indicators was administered to primarily identify the investors’ preference towards commodities market.  The study also intended to identify the investment patterns of investors, to know the investors’ opinion on the effect of international commodities market over the national trading activity, to identify the source of information about commodities market, and to profile the commodities investors.The investors are not fully aware of the functioning of commodity market and they draw market information from Print media, Web media and Peer groups.

 

 

  

BIBILIOGRAPHY

1. Pandey .I.M. Financial Management, Vikas publishing house Pvt Ltd(1991) 9 th  edition

2Kothari Rubin , Statistics for Management , Prentice Hall of India Pvt. Ltd 8 th edition

3Kothari C.R. Research Methodology , New Age International Pvt Ltd 8 th edition

4.The Karvy Finapolis Magazine – Weekly , Monthly & Yearly edition

 

 

 

WEB SITES

1. www.karvycomtrade .com

2. www.karvy .com

3. www. Mcxindia.com

4. www.dailyfutures.com

 

 

 

 

 

 


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A Study on Indian Individual Investors’ Behavior

Posted on February 8, 2011 by Admin

A Study on Indian Individual Investors’ Behavior

Ms.M.Kothai Nayaki*                                        Mrs.P.Prema**

 

Abstract:

Indian investor today have to endure a sluggish economy, the steep market declines prompted by deteriorating revenues, alarming reports of scandals ranging from illegal corporate accounting practices like that of Satyam to insider trading to make investment decisions. Stock market’s performance is not simply the result of intelligible characteristics but also due to the emotions that are still baffling to the analysts. Despite loads of information bombarding from all directions, it is not the cold calculations of financial wizards, or company’s performance or widely accepted criterion of stock performance but the investor’s irrational emotions like overconfidence, fear, risk aversion, etc., seem to decisively drive and dictate the fortunes of the market.

Introduction:

Indian Investors have to endure a sluggish economy, the steep market declines prompted by deteriorating revenues, including alarming reports of scandals like that of Satyam computers, ranging from illegal corporate accounting practices to insider trading etc to invest their money in the stock market. Whether or not Stock market’s performance is simply the result of intelligible characteristics of the investor is the question that still baffles the analysts. Despite loads of information bombarding from all directions, it is not the cold calculations of financial wizards, company performance or widely accepted criterion of stock performance but the investor’s irrational emotions like overconfidence, fear, risk aversion, etc., seem to decisively driving and dictating the fortunes of the market is increasingly realized by the analysts.

 

 

Assistant Professors, Department of Management, RVS college of arts and science, Coimbatore

 

Need for the Study:

Stock market has been subjected to speculations and inefficiencies, which are beached to the rationality of the investor. Traditional finance theory is based on the two assumptions. Firstly, investors’ make rational decisions; and secondly investors are unbiased in their predictions about future returns of the stock. However financial economist have now realized that the long held assumptions of traditional finance theory are wrong and found that investors can be irrational and make predictable errors about the return on investment on their investments.

 

Objectives of the Study:

(1) To develop a profile of sample Indian individual investor in terms of their demographics.

(2) To identify the objective of investment plan of an Indian individual investor.

(3) To know the preferred investment avenues of the Indian individual investor.

(4) To know the extent of financial literacy of individual investors

(5) To identify the preferred sources of information influencing investment decisions.

(6) To know the risk tolerance level of the individual investor and suggest a suitable portfolio.

(7) To study the dependence/independences of the demographic factors (Gender and Age) of the investor and his/her risk tolerance level.

Sample Design:

Many investors were reluctant to divulge their investment details especially the amount of money invested so; referral sampling method is used for this empirical study. It has been carried out with a sample size of 150 investors.

Methodology:

Based on the responses of the questionnaire, analysis has been carried out. Statistical methods such as Chi-square test of independence of attributes and Correlation have been used to uncover relationships among the variables.

• For measuring the risk tolerance level cumulative scale has been used.

• To study the dependency/Independency of the factors Chi-square test of independence of attributes was used.

• Correlation is used to know the relationship between Risk tolerance level and the Age of the investor

 

Literature Survey:

Literature suggests that major research in the area of investors’ behavior has been done by behavioral scientists such as Weber (1999), Shiller (2000) and Shefrin (2000). Shiller (2000) who strongly advocated that stock market is governed by the market information which directly affects the behavior of the investors. Several studies have brought out the relationship between the demographics such as Gender, Age and risk tolerance level of individuals. Of this the relationship between Age and  risk tolerance level has attracted much attention.

Wallach and Kogan (1961) were perhaps the first to study the relationship between risk tolerance and age. Cohn, Lewellen et.al found risky asset fraction of the portfolio to be positively correlated with income and age and negatively correlated with marital status. Morin and Suarez found evidence of increasing risk aversion with age although the households appear to become less risk averse as their wealth increases. Yoo (1994) found that the change in the risky asset holdings were not uniform. He found individuals to increase their investments in risky assets throughout their working life time, and decrease their risk exposure once they retire. Lewellen et.al while identifying the systematic patterns of investment behavior exhibited by individuals found age and expressed risk taking propensities to be inversely related with major shifts taking place at age 55 and beyond.

Interpretation:

It is clear  that 120 (80%) of the investors are men and the rest 30(20%) are females. Generally males bear the financial responsibility in Indian society, and therefore they have to make investment (and other) decisions to fulfill the financial obligations. When it comes to age, it was found that 36.7% are young and significant number (53.3%)of them are in the age group of 35 to 50. The marital status of 78% of the investors was found to be married and the rest are unmarried. This is because a married individual is considered to have dependents so relatively more invested and involved in making financial investments. Nearly 65% of the investors belong to the salaried class, 29% were business class and the rest were retired. It was found that 109(73%) of investors whose monthly earnings above rupees 30000 are interested in investments since these people have surplus amount due to which they are able to think of investments. 70(47%) of the individual investors covered in the study are postgraduates; 65(43%) investors are graduates and 15(10%) of the investors are under-graduates.

It is interesting to note that most investors (covered in the study) can be said to possess higher education (Bachelor Degree and above), and this factor will increase the reliability of conclusions drawn about the matters under investigation. 65(43%) of the investors covered in the study have been found to be in professions related to finance, accountancy, investment, banking, broking, and financial management etc and 58(39%) of the respondents are software engineers, architects, medical and dental practitioners, teachers, lawyers etc. 27(18%) of the respondents can be said to belong to ‘non-accounting or non-financial’ occupations and the other occupations.

The study has attempted to enquire about other characteristics of investor such as the reading behavior of the Investors. It is noteworthy to find that 59 (39%) of the investors read four or more sources, 40 (27%) of the investors read two to three sources, 51 (34%) of the investors only one source. One may infer from the figures of table 2 that most investors tend not to depend upon expert advice and help while making investment decisions. However, the majority of the investors 111 (74%) make investment decisions without the help and advice from experts; only 27 (18%) investors consult some experts, for advice in investment decisions. And 12 (8%) of the investors allow the expert to take decision on their behalf. Most of the investors 89 (59%) make investment decisions on a regular basis.

Objective of Investment Plan:

When investor was queried about his/her objective behind any investment, given that

all the available investment avenues available to him will assure safety, liquidity and

tax benefit, the objective of investment plan of the investors is that we can conclude that the investors’ objective of investment plan is capital appreciation or balance of capital appreciation and current income. It is clear that investors invest to accumulate wealth rather as an avenue to supplement their income.

Preferred Investment Avenues:

Based on the quantity of risk, the investment avenues are classified as follows – Fixed

Deposits/Bonds, Insurance schemes, Mutual Fund Schemes, Equities, Commodities and Real Estate. Investors were asked to choose preferred avenues. The resultant obtained, based on Weighted Mean Value is given

It can be concluded that the investors prefer FD’s/Bonds/PPFs avenues than insurance schemes next to Equities and Mutual Funds. It was interesting to know that Indian individual investors still prefer to invest their surplus amount in risk free investment avenues next to insurances schemes. It  confirms that Indian investors are conservative investors.

Financial literacy:

When investors were queried about their financial literacy i.e. their ability or knowledge about financial terms or aspects of investments, it was found that most of the investors are financial illiterates.

In spite of majority of the occupants (65) are from accounts and financial related jobs most of them astonishingly expressed ignorance about the mechanism of investments, and the dynamics of risk and returns.

Sources of Investment Information:

When investors were asked to rank their various sources of investment information, the following Weighted Mean Values were obtained which are given

Most of the investors get their information related to investment through electronic media (TV- NDTV Profit, CNBC and some business news channels) next to print media (News paper/ Business news paper/ Magazines). This could be because Print/Electronic media is easy and readily accessible investment information when compared to the other sources of investment information. Risk tolerance level and Suggestion of Suitable Portfolio to the Investors’

The role of uncertainty and the lack of knowledge about the return on Investment Avenue are important components of any investment. The extent of an investor’s ability to tolerate these uncertainties of return is referred as risk tolerance level of an investor (Schaefer, 1978). Risk tolerance tends to be subjective rather than objective.

From the sample of 150, it has been found that 61 investors (41%) have low risk tolerance and these investors should emphasize on capital preservation portfolio i.e., category A asset mix is suggested to them. 38 investors (25%) have moderate risk tolerance and these in investors should emphasize on balanced portfolio i.e., category B asset mix is suggested to them. And 51 investors (34%) have high risk tolerance and these investors should emphasize on aggressive capital appreciation portfolio i.e., category C asset mix is suggested to them.

The portfolio suggested to investors consists of four types of asset classes i.e., Equities, Fixed Income Securities, Cash & Equivalents and other Alternative assets such as art. Depending on their risk tolerance the corresponding asset class has been increased or decreased and corresponding asset mix has been suggested to each category of investor.

Hypothesis Testing

Hypothesis 1: Gender of the investor and the Risk tolerance level are two independent attributes of the investor.

Conducting chi square test at 5% level of significance, it is found that χ2 = 0.22 as the computed value is very less than the table value 5.99. We conclude that Gender and Risk tolerance are the two independent attributes of the investor. However empirical investigation of gender differences in risk taking is inconclusive (Charness and geenzy, 2004). While most research conducted prior to 1980 concluded that gender difference clearly exists, more recent research studies yield mixed conclusions.

In the current empirical analysis, it is found that irrespective of gender most of the investors are low risk tolerant or high risk tolerant rather than moderate risk tolerant. Generally, it is considered that women tend to be risk averse in comparison with men.

 

Hypothesis 2: Increase in Age decreases the Risk tolerance level.

Correlation between Age and risk tolerance

When Karl Pearson’s correlation coefficient is calculated, it is found to be -0.74 by which we can conclude that there is a strong negative correlation between Age and Risk tolerance. Age accounts for the major differences in risk taking decisions by the investors. The older an investor, the better seemed his/her performance in comparison to the younger ones. Over-confidence in their own investment ability among the youngsters largely accounts for the excessive trading among younger investors leading to lower returns and this direct to decline in the risk tolerance level.

Findings:

• The study reveals that male investors dominate the investment market in India.

• Most of the investors possess higher education like graduation and above.

• Majority of the Investors belong to accountancy and related employment, non-financial management and some other occupations are very few.

• Most investors read two or more sources of information to make investment decisions.

• The investors’ decisions are based on their own initiative.

• The investment habit was noted in a majority of the people who participated in the study.

• The objective of investment was either capital appreciation or balance of capital appreciation and current income.

• Investors prefer to park their funds in avenues like PPF/FD/Bonds next to Equities and Mutual Funds Scheme.

• Most of the investors get their information related to investment through electronic media (TV) next to print media (News paper/ Business news paper/ Magazines)

• Most of the investors are financial illiterates.

• Gender and the risk tolerance level of the investor are independent attributes of the investor.

• Increase in age decrease the risk tolerance level.

 

 

Conclusion:

This study confirms the earlier findings with regard to the relationship between gender and age, the risk tolerance level of individual investors. The Present study has important implications for investment managers as it has come out with certain interesting facets of an individual investor. The individual investor still prefers to invest in financial products which give risk free returns. This confirms that Indian investors even if they are of high income, well educated, salaried, independent are conservative investors prefer to play safe. The investment product designers can design products which can cater to the investors who are low risk tolerant and use TV as a marketing media as they seem to spend long time watching TVs.


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What Your Business Plan Needs to Convey to Potential Investors

Posted on February 8, 2011 by Admin

If you are hoping to attract the attention of a business angel to your new venture, it’s imperative that you have a complete, professional, and comprehensive business plan. They will scrutinize your plan carefully to make sure your business fits within their investment goals. You need to know what it is they are looking for before you present your plan, or it could be a waste of time for all parties concerned.

There are many components of a business plan. If you want to appear serious and professional, consider hiring someone to create and design your plan with you, or purchase software to help you create it. The point is, don’t write your plan on the back of a take-out menu or a napkin; this will not convey the image you want to a potential investor.

Here are the key components of a business plan:

Summary – this is usually a short, one page document that summarizes your business, your objectives and your product or service.

Skills and experience – detail your past business experiences, education, awards, skills, talents, etc. Go ahead and toot your own horn, this is not the time to be humble. Investors will want to know what you are bringing to the table.

Information about you – this a more personal look at you, where you’re from, why you started your business.

Your Product or Service – What makes it different from the competition? Is it in an innovative or high-growth industry? How much market share do you hope to obtain? How much market share do your competitors have?

Financial Data – It’s important to be as detailed and accurate in this section as possible. You must list all expenses: utilities, salaries, rent, machinery, equipment, supplies, etc. Also, list your income from all sources: sales, investments, etc. Give your potential business angel a detailed look at how much the business is costing you to run (or going to cost you if you haven’t actually started yet,) and how much income you are generating.

Goals – Have income and expense projections and general business goals for at least the next 5 years. What direction do you want to see your business go in?

Marketing and Advertising – How are you going to market your business? Are you going to be using an advertising firm, or creating your own? Don’t forget to list these expenses in your financial data section.

A thorough business plan takes time and effort to complete, but once you have it, your chances of attracting an interested business angel is much higher.

One of the best websites in this regard is entrepreneurinvestornetwork.com.au, which aims at uniting angel investors looking for business investments in Australia with budding entrepreneurs in the country.Log on to the website today. You will not be disappointed.


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Need Startup Capital for Your Business? Find an Angel Investor!

Posted on February 7, 2011 by Admin

Do you have a great idea for a business? Are you anxious to get started, but don’t have the funds to get your business off the ground? Don’t despair, help is at hand – just find yourself a business angel.

What is a business angel? They are people that have already made their fortune in business ventures, and are well established. They are looking to give something back in terms of giving funds to other start up businesses that they deem profitable in the long run. They love to invest in businesses they consider to be ‘high growth.’ Don’t approach them with a miniscule idea or an idea without a sound business plan for growth.

The business angel will want assurances that you have a solid business and a likely chance at succeeding; when you make money, they make money. This is a very positive aspect, because they will do everything in their power to make sure you succeed. A business angel will not only supply money to your venture – they will also share with you all that they have learned in their own business ventures including business contacts, experiences, skills, etc.

So, How Do You attract the attention of a business angel? First, you need to make sure your business plan is sound. Make sure you have at least a 5 year plan. Include profit projections, expenses, etc. Include as much details as you can. It is imperative that your business plan be as detailed as possible and as accurate as possible.

What’s in it for the Business Angel? Other than the fact that they want to help others that are starting out, they do have an ulterior motive – to make money. These people are investors after all. For the most part, they would have part ownership of your business, and as such a portion of the profits will go to your business angel. Is this not a small price to pay for the wealth of knowledge and skills you will receive?

Make sure you spend time with your investor to make sure you feel comfortable with him/her. Everyone is different, and each investor will have different rules/terms to their angel arrangement. Like most things in life, knowledge is the key to success!

One of the best websites in this regard is entrepreneurinvestornetwork.com.au, which aims at uniting angel investors looking for business investments in Australia with budding entrepreneurs in the country.Log on to the website today. You will not be disappointed.


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Angel Investors ? Which One is Right for My Business?

Posted on February 7, 2011 by Admin

Angel investors generally have differing areas of expertise, motives and personalities. You will have to do some research to find which one best fits your needs. Generally, angel investors can be grouped into three main categories:

1) Core: These are individuals who have built a successful business and have an extensive amount of experience. They have accumulated their wealth over the course of their business life and are very committed. They involve themselves with all areas and sectors of business, despite the investment risk, these angels are wonderful mentors and advisors.

2) Technology: These people invest in the latest technology trends. They don’t mind the high risk and enjoy the idea of bringing something new to the market. They may or may not want to be involved in the business on a daily basis and take a more hands off approach.

3) Return on Investment: They want a high return for their high risk on investments. The motivation here is all about how much they are going to profit from your business once it’s up and running. These guys usually stay away from investments when the market is poor. They also usually require an active involvement in the business that they’ve invested in.

You will want to meet with several investors to get a feel for which ones will be a good fit for you and your business. If you have a new invention that is high tech, you may want a technology angel. If you want someone to learn all the ins and outs of business management and start up, then a core angel may be a good fit. If you need someone to teach you the daily process of running a business, a return on investment angel may be best.

Investment angels come from all different sectors and backgrounds. Some are entrepreneurs, some are corporate executives, some are born wealthy, and some are simply investors who want a high rate of return. Know which type you want to partner up with before you seek them out. This will give you an idea of what they expect of you and ensure you get the start up capital you need.

One of the best websites in this regard is entrepreneurinvestornetwork.com.au, which aims at uniting angel investors looking for business investments in Australia with budding entrepreneurs in the country.Log on to the website today. You will not be disappointed.


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Polaris Energy Offers State-of-the-Art Investor Transparency by Launching an Investor Dashboard Web Portal for Investors in Renewable Energy Projects

Posted on February 6, 2011 by Admin

Polaris Energy Offers State-of-the-Art Investor Transparency by Launching an Investor Dashboard Web Portal for Investors in Renewable Energy Projects











www.polarisenergy.com


Milan, Italy (PRWEB) January 27, 2011

Polaris Energy has launched a transparent and responsible approach to ensure investor confidence and facilitate ‘direct ownership’ for private investors who will now be able to manage and keep track of their investments using a new state-of-the-art web-based dashboard.

Polaris Energy focuses on creating direct ownership opportunities for investors interested in alternative energy projects. The new investor dashboard provides a secure place for investors to manage their green energy investments and contains features that provide transparency into the project construction and installation processes, such as web cameras on the construction site and streaming plant output data during production.

For 2011, Polaris Energy is focusing on developing photovoltaic solar projects in Italy, due to Italy’s generous Feed-in Tariff rates and Polaris’ strong project team with experience in the Italian photovoltaic solar market. The investor dashboard is a great tool for investors who are not local to Italy and who are not familiar with the process of constructing a solar power plant. By providing an opportunity for investors to observe the plant construction and installation processes, the investor dashboard provides an opportunity for investors of Polaris Energy to learn more about the alternative energy industry, as well as invest in it.

In addition to providing project data and access to Polaris Energy’s investment offerings, Polaris intends to expand the investor dashboard to access the company’s Swiss banking platform – where all investor funds are secured – in the near future.

“We enjoy working with investors worldwide who partner with us to invest in clean energy facilities.” said Polaris Energy’s Strategic Advisor Samuel Wilson. “By taking advantage of online tools to create a seamless and transparent investor experience, we have created a web portal where our investors can manage their investments and track their projects from wherever they are in the world.”

Polaris Energy is currently accepting inquiries from qualified and accredited investors, both private and institutional, who are interested in direct ownership in renewable energy projects. Polaris Energy offers the stability of the private equity community in Luxembourg and employs a Swiss banking platform to ensure financial security for its clients.

http://www.polarisenergy.com

The Polaris Energy Initiative:

Polaris Energy opens the gateway to alternative energy. Our private equity firm, registered in Luxembourg, allows investors to participate in renewable energy projects that focus on a wide range of energy production. We perform two primary services:

(1) We obtain investments from individuals and institutions who are seeking to invest directly in alternative energy projects

(2) We research and manage the development of these projects that have the potential to become operable quickly and create returns for our investors. To ensure that we maintain a relationship of trust with all of our investors, we employ a Swiss Banking platform that provides world-class financial security for all of the funds invested in our projects. It is our mission to meet the world’s need for clean and renewable energy by identifying investment opportunities that will be profitable, sustainable, and rewarding. We want you to be a part of these opportunities and invite you to explore our green energy investment options. Whether you are a private, corporate, or institutional investor, you will find the right alternative energy investment opportunity with Polaris Energy.

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8 Tips For Writing a Great Business Plan and Attracting The Right Investors

Posted on February 6, 2011 by Admin

Look at any successful entrepreneur and you will find they all started with a great business plan. There is good reason for this; in order for a new business to grow, prosper and get the start up funds it needs, you must show potential investors that you have done your homework and know what direction to take your business.

There are eight key components to writing a business plan. You can be sure investors will look very carefully to make sure your plan is detailed and contains realistic data. Think of your plan as a sort of sales pitch – you want it to jump out at them and make them want to partner with you.

Take your time and do your research. Writing your thoughts on a napkin does not count and will not get you the financial backing you require. What are the benefits and features of your business? Who will your customers be? Are you going to be a brick and mortar or strictly online presence?

Your Mission Statement. What is your company’s purpose? What do you want it to do for people? What are your objectives and principles?

Market Share. Describe current market conditions and where you see your business fitting in. How much of the market share do you want? How much does your competition have? Are there opportunities for growth?

Information about you and your skills. Investors will want to know what business experience you possess and any special talents or skills you have. Don’t be shy; outline all of your unique skills, awards, honor degrees, etc. The more the better.

Financial data. You must include projections for all financial aspects of your business. Income, expenses, marketing, fixed costs, etc. There are no categories for ‘miscellaneous’ here; you must fully outline each piece of financial data. It’s a good idea to include charts and graphs as well.

Organization chart. Outline the various job positions. How many people do you need to hire and what do you need to pay them?

Do you have a Plan B? What will you do if unforeseen circumstances force you to abandon Plan A? This shows flexibility in your business.

Exit Strategy: Are you willing to give your investors a fair exit strategy? Once an investor has made a return on their profit, most will want to turn your business completely over to you.

If you include these 8 components while compiling your business plan, your chances are much greater of attracting a business partner and getting the financial start up funds you need.

One of the best websites in this regard is entrepreneurinvestornetwork.com.au, which aims at uniting angel investors looking for business investments in Australia with budding entrepreneurs in the country.Log on to the website today. You will not be disappointed.


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Thomas Barrack, Founder, Chairman, CEO, Colony Capital gives the keynote address to the Principal Investment Conference. Recorded: February 13, 2008
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Do You Need a Private Investor For Your Business?

Posted on February 6, 2011 by Admin

Do you have a new business or business idea but don’t have the needed start up capital? Then chances are you need a private investor, also known as a business angel.

Business angels are individuals who are also entrepreneurs. They’ve made their fortunes in their own businesses, and are now looking for new investment vehicles – which could be your business.

There are tremendous benefits to partnering with an investor, both short term and long term.

First, investors will provide you with the start up capital you need to get your business up and running. Usually, they will invest up to Million dollars.

Second, they share all of their skills and experiences with you. They will show you what they did to become successful, and how they were able to sustain their wealth, regardless of the economic conditions.

Third, they give you access to all of their business contacts. This is an invaluable tool for you to build your own contacts and relationships. These people are your future clients and referral base. This alone is priceless.

Fourth, investors will stay 100% committed to making your venture the success you want it to be. They will work with you one-on-one on a regular basis to make sure you are learning everything you need to in order to sustain those profits that are going to be rolling in. Part of their job is to make sure you learn enough to eventually be on your own. Make sure you learn everything you can from them; take notes and review them regularly.

If you want to decrease your learning curve, increase your profits, and work closely with a mentor, you need to consider investing with a business angel. It’s not just about getting money from them; it’s about gaining lifelong skills and building a lasting relationship with someone you trust and who has your best interest in mind.

Finding a private investor is not difficult; choose wisely and make sure you are comfortable working with him or her. Meet with them more than once before making your final decision. Look for those who share your values, goals and dreams.

One of the best websites in this regard is entrepreneurinvestornetwork.com.au, which aims at uniting angel investors looking for business investments in Australia with budding entrepreneurs in the country.Log on to the website today. You will not be disappointed.


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