A COMPREHENSIVE PROJECT REPORT ON A STUDY ON INVESTMENT PATTERN IN SOUTH GUJARAT

Submitted to L.J Institute of Computer Application IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION In Gujarat Technological University UNDER THE GUIDANCE OF (Asstt. Professor.) Submitted by Hardik Gangadiya (117300592013) Riten Darji (117300592030) BATCH (2011-2013) (L.J. Institute of Computer Application) MBA PROGRAMME Affiliated to Gujarat Technological University Ahmedabad MAY, 2013

Institutes Certificate
Certified that this Comprehensive Project Report Titled A STUDY ON INVESTMENT PATTERN IN SOUTH GUJARAT is the bonafide work of, Hardik Gangadiya (117300592013) Riten Darji (117300592030) who carried out the research under my supervision. I also certify further, that to the best of my knowledge the work reported herein does not form part of any other project report or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate.

(Prof. .) Signature of the Faculty Guide

Students Declaration
We, Hardik Gangadiya and Riten Darji, hereby declare that the report for Comprehensive Project entitled A STUDY ON INVESTMENT PATTERN IN SOUTH GUJARAT is a result of our own work and our indebtedness to other work publications, references, if any, have been duly acknowledged.

Place: AHMEDABAD Date:

Hardik Gangadiya Riten Darji Signature

PREFACE As a part of partial fulfillment of MBA programme, we are supposed to undertake comprehensive project in an organization or independently. In order to deal with practical aspect of our syllabus in MBA, comprehensive project is of great help. This kind of project enables us to face the real life situation of the market and allows better insight to take the practical economic problem.

We have undertaken the comprehensive project independently. The aim of the project is to utilize the knowledge and know the practical aspects of theory studied in MBA.

we are going to study about the Investment Pattern of the investors in south Gujarat region and in this we are going to study of five major cities.

PART 2 : Primary study INTRODUCTION

In this comprehensive project we are going to study about the Investment Pattern of the investors in North Gujarat region and in this we are going to study of five major cities Patan, Unjha, Mehsana, Visanagar and Vijapur. The Indian financial market is one of the fastest growing emerging markets of the world, thanks to the new economic policy - liberalization, deregulation and measures of restructuring - which has dismantled entry barriers in the financial markets, allowed the entry of new players and created an environment for efficient allocation of resources. The major investors in the markets are the Money market, Capital market, Individual Investors, Corporate Sectors, Charitable Trusts, etc. The Money markets are T-bill, call money market, commercial bills, commercial papers, certificates of deposits. The capital markets are debt and equity. The individual investors are now aware about of the other sources of the investment avenues rather than the traditional investment avenue. They are aware about the modern investment avenues. Mutual Funds, Bank Deposits, Post Office Schemes, RBI Relief Bond, Public Provident Fund, Unit Trust of India, Life Insurance, and Equity are the investment avenues where generally investors invest their savings. The survey conducted to understand about the Investment Pattern of investors in south Gujarat.

LITERARTURE REVIEW
Grewal S.S and Navjot Grewall (1984) revealed some basic investment rules and rules for selling shares. They warned the investors not to buy unlisted shares, as Stock Exchanges do not permit trading in unlisted shares. Another rule that they specify is not to buy inactive shares, i.e., shares in which transactions take place rarely. The main reason why shares are inactive is because there are no buyers for them. They are mostly shares of companies, which are not doing well. A third rule according to them is not to buy shares in closely-held companies because these shares tend to be less active than those of widely held ones since they have a fewer number of shareholders. They caution not to hold the shares for a long period, expecting a high price, but to sell whenever one earns a reasonable reward.

Jack Clark Francis2 (1986) revealed the importance of the rate of return in investments and reviewed the possibility of default and bankruptcy risk. He opined that in an uncertain world, investors cannot predict exactly what rate of return an investment will yield.

However he suggested that the investors can formulate a probability distribution of the possible rates of return. He also opined that an investor who purchases corporate securities must face the possibility of default and bankruptcy by the issuer. Financial analysts can foresee bankruptcy. He disclosed some easily observable warnings of a firm's failure, which could be noticed by the investors to avoid such a risk.

Preethi Singh3 (1986) disclosed the basic rules for selecting the company to invest in. She opined that understanding and measuring return and risk is fundamental to the investment process. According other, most investors are 'risk averse'. To have a higher return the investor has to face greater risks.

She concludes that risk is fundamental to the process of investment. Every investor should have an understanding of the various pitfalls of investments. The investor should carefully analyze the financial statements with special reference to solvency, profitability, EPS, and efficiency of the company.

Nabhi Kumar Jain6 (1992) specified certain tips for buying shares for holding and also for selling shares. He advised the investors to buy shares of a growing company of a growing industry. Buy shares by diversifying in a number of growth companies operating in different but equally fast growing sector of the economy.

He suggested selling the shares the moment company has or almost reached the peak of its growth. Also, sell the shares the moment you realize you have made a mistake in the initial selection of the shares. The only option to decide when to buy and sell high priced shares is to identify the individual merit or demerit of each of the shares in the portfolio and arrive at a decision. Report by the I.ES47 (The Investigation Enforcement and Surveillance) Department of the SEBI (2000) states that in spite of some instances of high volatility, the Indian markets have remained stable and safe. It is observed that the Indian securities market has been witnessing a downtrend and instances of volatility. But the downtrend and the fall in the sensex are in consonance with the fall in the indices of the major capital markets around the world. According to the Report, the downtrend in the sensex could be attributed toI. Rise in the oil prices in the global markets leading to increase in oil pool deficit. 2. Downward pressure on the Indian Rupee. 3. Fears of economic slowdown as indicated by the key economy indicators. 4. Revival of competitive economies such as Malaysia and possibility of shifting some foreign investments to these countries etc.

RESEARCH METHODOLOGY

Research process:A research process consists of stages or steps that guide the project from its conception through the final analysis, recommendation and ultimate actions. The research process provides a systematic, planned approach to the research project and ensures that all aspects of the research project are consisting with each other. Research studies evolve through series of steps, each representing the answer to a key question.

RESEARCH OBJECTIVES:There are several objectives so that research is needed. To know the awareness about investment pattern in north Gujarat To know that where investors invest their money.

SAMPLING METHOD:There are two types of sampling method.

PROBABILITY NON PROBABILITY

Here, we have used probability sampling method this means that a sample procedures in which each elements of the population has a fixed probability chance of being selected for the sample. In probability sampling method, We have choose sub sampling method, that is RANDOM SAMPLING METHOD, that means that sample has been selected at randomly & there are equal chances for selection of respondents.

SPECIFING SAMPLING PLAN: The SAMPLING PLAN is as follows:-

SAMPLE SIZE SAMPLE UNIT INSTRUMENT CONTACT METHOD EXTENT

200 RESPONDENTS (approx.) GENERAL PUBLIC QUESTIONNAIRE PERSONAL INTERVIEW SOUTH GUJARAT

CHOICE OF RESEARCH DESIGN:-

Research design is helpful to specify the method and procedures for conducting a particular study. A research design is the plan strategy of investigation conceived so as to obtain answer to reserved question and to contact variance.

Various authors have classified the designed in different ways. Different types of research designed have emerged on account of the different prospective from which a researcher study can be viewed.

While observation and focus groups are best situated for exploratory research survey are best suited for descriptive research. We undertake surveys about customers knowledge, beliefs, preference, and satisfaction and so on to measure these magnitudes in the general population.

Descriptive study could be taken up when he is interested in knowing the proportion of people in a given population we have behaved in particular manner making project of certain things or determining the relationship between two or more variables. Descriptive studies can be divided into broad categories cross sectional studies are of two types field study and survey data on number of characteristics of sample elements are collected and analyzed.

DATA COLLECTION

For completing this research project we will collect the data by two ways.

1 -PRIMARY DATA We will collect the primary data by fill up the questionnaire

2 -SECONDARY DATA Secondary data are collected directly from the internet, journals, articles by us.