“A STUDY ON INVESTOR TOWARDS INVESTMENT IN PUNE”

Projects Report Submitted for partial fulfillment of requirement For the award of Post Graduate Diploma in Financial management

By SANJAY KUMAR PATIDAR PRN No. 1000002257

Under the Guidance of Mr. N. Hariharan Professor & Head Department of Finance AMPLIFY – BVU Pune – 411043 April – 2012

ACKNOWLEDGEMENT
I am deeply thankful to all the persons who had given their helping hands to me in making this project report successful. In the beginning I would like to give my hearty thanks to Mr. N.Hariharan, ―Professor and Head Department of Finance,Amplify-BVU, Pune‖ for giving me the opportunity to study the course and go for this successful training.

Then I would like to express my sincere thanks to Mrs. Aruna Peshave (Coordinator) who Help me to make Hypothesis and some other work. I am grateful to her for his enthusiasm and willingness for the help after the course of this project. I was always intended for his guidance and support.

I would also like to include my family who gave me support in many ways and boosted my confidence. My friends were very co-operative and motivating to me. I am thankful to all the people who have given their precious time and provided me with requisite data without which this project would not have completed .I also thank them for giving their valuable suggestions during the entire period of research.

SANJAY KUMAR PATIDAR

N.HARIHARAN Professor and Head Department Of Finance Amplify-BVU Pune-411043

CERTIFICATE

This is to the certify that the Project Report Titled “A STUDY ON INVESTOR TOWARDS INVESTMENT IN PUNE” is an original work done by Mr. Sanjay Kumar Patidar PRN No. 1000002257 of PGDFM 2010-2012 Batch as part of his study.

This report has not been submitted for award of any other Degree/Diploma.

Date: Place: Pune

Supervisor and Guide

1 Importance 1.4 Data Collection 1.5 Hypothesis 1.6 Limitation 1. Review Of Literature 4-40 4-5 5 5-6 6 7 7-8 8-11 11-12 2.5 Preference shares 2.7 Government Securities 2.2 Objectives 1.2 BSE Online Trading 2. Introduction 1. DESCRIPTIONS Preliminary Page PAGE NO.7 Chapter Scheme i ii 1-3 1 2 2 2 2 2 3 2.8 Process stage in Investment . i-ii Acknowledgement Certificate 1.LIST OF CONTENTS CHAPTER NO.1 Stock market 2.4 Bonds 2.3 Scope 1.6 Equity shares 2.3 Debentures 2.

Analysis & Interpretations 41-69 4.1 Findings 4.12 Marketability risk 2.2 Suggestion 70-71 71 Bibliography 72 A-1 A-2 A-3 Questionnaire.2.9 Success in Investment 2. Findings & Suggestions 70-71 4.13 Factors favorable for Investment 2.10 Three approaches to succeed an Investor 2.14 Investors 2.11 Investment an speculation 2. Interview Schedule Frequency Table Data Sheet .15 Organization Structure 12-15 15 16-20 20-21 22-25 25-36 36-40 3.

3.LIST OF TABLES Table No.12 3. 3. 3.14 Preferred to take advice Preferred to money in bank and type of bank Preferred to Return on investment Preferred to frequency of investment Preferred to percentage of income of invest Preferred to take investment decision Preferred to next 3-5 years expect your annual income to change 3.10. 3. DESCRIPTION Preferred to invest your money Preferred age group of investor Preferred best investment option Preferred to kind of investor Preferred to investment pattern Preferred to Investment time duration Preferred to professional advice regarding investment 3. 41 42 43 .13 3. 3. 3. 3. 3.5.3.1 3.11.4.2 3.9.15 3.16 Experience in the market Trading preference 44 45 46 47 48 49 50 51 52 53 54 55 56 Page No.7.6. 3.8.

19 3.24 3.27 3.20 3.17 3.29 Investment Decision is depending .3.18 3.28 Factor influencing the investment decision Preferred to risk taking Preferred to taking loss Preferred to annual income Type of investor Funds opinion are performing well Preferred to financial instrument in investment Following planned insured Preferred to purpose behind investment Preferred to various investment avenues Preferred to frequency trading Thinks as the specialty of trading in commodity market 57 58 59 60 61 62 63 64 65 66 67 68 69 3.26 3.25 3.23 3.21 3.22 3.

2 3.16 Experience in the market Trading preference Page No. 3. 3. 3.11. 3.9. 3.10.LIST OF GRAPHS Graph No.12 3. 3.7.4. 3. 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 . 3. 3.5. DESCRIPTIONS Preferred to invest your money Preferred age group of investor Preferred best investment option Preferred to kind of investor Preferred to investment pattern Preferred to Investment time duration Preferred to professional advice regarding investment 3.8.14 Preferred to take advice Preferred to money in bank and type of bank Preferred to Return on investment Preferred to frequency of investment Preferred to percentage of income of invest Preferred to take investment decision Preferred to next 3-5 years expect your annual income to change 3.6.15 3.1 3.13 3.3.

28 Factor influencing the investment decision Preferred to risk taking Preferred to taking loss Preferred to annual income Type of investor Funds opinion are performing well Preferred to financial instrument in investment Following planned insured Preferred to purpose behind investment Preferred to various investment avenues Preferred to frequency trading Thinks as the specialty of trading in commodity market 57 58 59 60 61 62 63 64 65 66 67 68 69 3.3.19 3.23 3.25 3.26 3.21 3.29 Investment Decision is depending .22 3.27 3.17 3.18 3.20 3.24 3.

CHAPTER-1 .

INTRODUCTION .

Today. The study has been undertaken to analyze the investment pattern of investment community. Equity share holder is real owner of the company in spite of their priority in getting dividend is comes last. Real estate. Price Earnings Ratio. Precious objects and bank deposits etc . grade etc of investment and disinvestment. Instead of keeping the saving idles you may like to use saving in order to get return on it in the future. . Now a day. one of the most emerging choices is to invest in equities shares. Indian economy is doing indeed well in recent years. Major Investors are investing in equity market only due to earn high return and hedge the risk by investing their 5%-10% of income in Equity Market. timing. Law always says that investors get higher return if they take high risk. which is known as investment.1. There are various investment avenues such as Equity. The main reason behind the study is the factory like income economy condition and the risk covering nature of the Indian investors. investment in equity is in best high proportion. 28% of investors invest in Equity market for the period of 1 to 3 Months and the same proportion of investors are invest for long period more than year. Today people have several choices for the investment alternatives. Insurance. Investment is the sacrifice of certain present value for the uncertain future reward it entails arriving at numerous decision such as type. This is because the history of stock market is booming and burses overnight millionaires an instant paper. For high risk there is one avenue to invest and that is Equity Market. Dividend and Profitability as a most important factor while selecting the Sector and company under the sector.A portfolio is a combination of different investment assets mixed and matched for the purpose of achieving an investors goals. To get good return on investment. amount. Among all investment. Days were gone when people only invest their money in Post offices or in Banks and another safely fixed return investment.1 IMPORTANCE An investment refers to the commitment of funds at present in anticipation of some positive rate of return in future. Further such decision making has not to be continuous but rational too. mix. people are ready to take risks. Bonds. Most of investors have considered Market trend. the spectrum of investment in indeed wide An investment in confronted with array of investment avenues.

1. To study the product and services. 1.5 Hypothesis  Investor is the impact of investment opinion.4 DATA COLLECTION  A total Sample of 75 is concentrated for the study. To study the financial instruments of investment.3 SCOPE  This study concentrates on Investor towards investment.6 LIMITATIONS OF THE STUDY    Time is limiting factor. .  Both primary and secondary data used for a study.     To study the Investment pattern of investment. 1. 1. The sample has been collected for investor towards investment. Respondents were reluctant to share information. To study the investor adoption. Opinion given by respondents (If biased) may reflect on the study.2 OBJECTIVES  To study the small savings scheme are designed to provide safe & attractive investment options to the public.1.

1 Introduction 1.7.1.4 Findings & Suggestions .7.2 Review of literature 1.7.7 CHAPTER SCHEME 1.3 Analysis & Interpretation 1.7.

CHAPTER-2 .

REVIEW OF LITERATURE .

So. derivatives. Stock Exchanges are an organized marketplace. here we also understand about Stock Exchanges as follows. 2. Stock exchanges also provide facilities for the issue and redemption of securities as well as other financial instruments and capital events including the payment of income and dividends. unit trusts. The initial offering of stocks and bonds to investors is by definition done in the primary market and subsequent trading is done in the secondary market. investing in stock market. these are securities listed on a stock exchange as well as those only traded privately.2. The size of the world stock market was estimated at about $36. A stock market is a public market for the trading of company stock and derivatives at an agreed price. Trade on an exchange is by members only. In fact. to trade stocks and other securities. pooled investment products and bonds. where members of the organization gather to trade company stocks or other securities. or raise additional capital for expansion by selling shares of ownership of the company in a public market. for instance. This allows businesses to be publicly traded. it has to be listed there. either corporation or mutual organization. as modern markets are electronic networks. Usually there is a central location at least for recordkeeping. meaning that they collect and deliver the shares. To be able to trade a security on a certain stock exchange. demand and supply for a particular stock).6 trillion USD at the beginning of October 2008.1. The price at which each buying and selling transaction takes is determined by the market forces (i. tend to be associated with increased business investment and vice versa. .1 Stock Market Stock markets refer to a market place where investors can buy and sell stocks. Rising share prices. the stock market is often considered the primary indicator of a country's economic strength and development.1 Stock market: A stock exchange is an entity which provides "trading" facilities for stock brokers and traders. The stock market is one of the most important sources for companies to raise money.e. The securities traded on a stock exchange include: shares issued by companies. which gives them advantages of speed and cost of transactions. and guarantee payment to the seller of a security. the stock exchanges also play importance role. This eliminates the risk to an individual buyer or seller that the counterparty could default on the transaction. but trade is less and less linked to such a physical place. Exchanges also act as the clearinghouse for each transaction. In this way.

The following are types of debentures: Convertible debentures  Non-Convertible debentures .OTC Exchange Of India.Mangalore.2 The BSE On-line Trading (BOLT): BSE On-line Trading (BOLT) facilitates on-line screen based trading in securities. 2. Bhubaneshwar. stock exchanges are part of a global market for securities List of Stock Exchanges in India 1. Regional Stock Exchanges (21) There are 21 other regional stock exchanges. VARIOUS INVESTMENT AVENUES: 2. Supply and demand in stock markets is driven by various factors which. National Stock Exchange(NSE) 3. Uttar Pradesh. nor must stock be subsequently traded on the exchange.Coimbatore.Saurashtra Kutch.Pune. 1992.Cochin. Bombay Stock Exchange(BSE) 2.A stock exchange is often the most important component of a stock market.Meerut.Delhi.MadhyaPradesh.3 DEBENTURES: ―A type of fixed-interest security. Such trading is said to be off exchange or over-thecounter. affect the price of stocks. issued by companies (as borrowers) in return for medium and long-term investment of funds A debenture is evidence of the borrower's debt to the lender. BOLT is currently operating in 25. which are Ahmedabad. Madras.Ludhiana.Magadh.Vadodara etc.Jaipur. There is usually no compulsion to issue stock via the stock exchange itself.Bangalore. Increasingly.Hyderabad. Calcutta. as in all free markets.000 Trader Workstations located across over 359 cities in India.Guwahati. This is the usual way that derivatives and bonds are traded.‖ These are issued by companies and regulated under the SEBI guidelines of June 11.

These include:  Income bonds  Tax-free bonds  Capital gains bonds  Deep discount bonds  Infrastructure bonds  Retirement bonds etc.2 (US$ billion) which is 34. . in which the authorized issuer owes the holders a debt and. The US bond market's outstanding debt is more than $25 trillion. These too are available in a large variety. ICICI. is obliged to pay interest (the coupon) and/or to repay the principal at a later date. termed maturity. The size of the US bond market is the largest in the world. and IFCI.4 BONDS: ―A bond is a debt security. depending on the terms of the bond. 2. International Bond Market is very big and has an estimated size of nearly $47 trillion. Indian development financial institutions like IDBI. have been raising capital for their operations by issuing of bonds. While the size of Indian dept market is 239.5% of GDP as on 2004 -05. Zero coupon convertible notes  Zero interest fully convertible debentures  Fully convertible debentures with interest  Partly convertible debentures.‖ A bond is a formal contract to repay borrowed money with interest at fixed intervals.

They generally bear a fixed dividend. the extent of your ownership (your stake) in a company depends on the number of shares you own in relation to the total number of shares available For example. you own one per cent of the company. Investors who own equity shares in a company are called shareholders. payable if the company declares dividends. .000 shares. They are ordinary shares with no guarantee of dividend. Preference shares have different features and are accordingly available as:  Cumulative and non-cumulative preference shares  Redeemable and non-redeemable preference shares  Convertible and non-convertible preference shares  Preference shares with a combination of the above features.2. 2. share in profits of the company.6 EQUITY SHARES: Equity shares represent proportionate ownership in the company. Investors who own equity shares of a company are entitled to ownership rights. like voting for selection of directors on the Board.5 PREFERENCE SHARES: ―Stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights‖ Preference shareholders do not have voting rights. etc. if you buy 1000 shares of stock in a company that has issued a total of 100. Equity shares gain maximum returns when there are high profits. As a shareholder.

If a company is wound up for any reason. if Board of Directors and majority of the shareholders agree. equity shareholders may receive money from the residual funds after satisfying all other liabilities. Although only . Treasury Bills Dated Securities: Dated Securities have a maturity period of more than one year Treasury Bills: Treasury Bills have a maturity period of less than or up to one year. An investor can become shareholder/beneficial owner of a company by purchasing shares of the company. 2. Shareholders are entitled to share profit of the company in the form of "dividend" on "bonus shares". There are two types of Government Securities – a. The term Government Securities includes:  Central Government Securities  State Government Securities  Treasury bills The Central Government or State Governments issue securities periodically for the purpose of raising loans from the public. settlement of trade.A shareholder or a beneficial owner can exit from the ownership by selling the shares. The Public Debt Office (PDO) of the Reserve Bank of India performs all functions with regard to the issue management. distribution of interest and redemption.7 GOVERNMENT SECURITIES: Government securities (G-secs) are sovereign securities which are issued by the Reserve Bank of India on behalf of Government of India. Dated Securities b.

Investors can invest in book entry form with Banks and other institutions like NSDL. 3. Evaluating and controlling the quality of managerial controls. An investor has to approach RBI to receive government securities in physical form. The Public Debt Office (PDO) of the Reserve Bank of India performs all functions with regard to the issue management. settlement of trade. SHCIL. . Deciding risk profile is synonymous with drawing a risk picture and involves the following steps. and NSCCL etc. Measuring and scoring inherent risks.corporate and institutional investors subscribe to government securities. NSDL facility to buy and hold government securities is convenient because of its reach and depository account opened for other securities can be used for holding government securities. Return opportunities come from two sources: an expanded universe of securities from which to trade and a wider array of trading strategies implemented without the constraints of regulation common to most traditional products. and NSCCL etc. Investors can invest in book entry form with Banks and other institutions like NSDL. 5. NSDL facility to buy and hold government securities is convenient because of its reach and depository account opened for other securities can be used for holding government securities. SHCIL. 1. individual investors are also permitted to subscribe to these securities. Establishing standards for each risk component 4. Although only corporate and institutional investors subscribe to government securities. Developing risk tolerance levels. An investor has to approach RBI to receive government securities in physical form. individual investors are also permitted to subscribe to these securities. distribution of interest and redemption. Identifying and prioritizing the inherent risks 2.

This expected return would help to decide whether the investment is a 'good' or 'bad' one. He concluded that with the beginning of a derivative market.A good risk and return model should- a. financial institutions. Translate the risk measure into an expected return. They have strengthened the internal control systems including internal audit and they are increasingly using equity research of better quality. He also stated that one of the objectives of measuring risk is to come u p with a n estimate of a n expected return for a n investment. The various types of risks in relation to the different institutions He opined that 'Managing risk' has different meanings for banks.banking financial . He observed that inflationary expectations and higher interest rates tend to reduce P/E ratios whereas growth companies tend to have higher P/E ratios. He suggested that an investor should examine the trend of P/E ratios over time for each company. inadequate availability of skills in using quantitative risk management models and lack of risk hedging investments for the domestic investors are major constraints. The implications of risk management in the changed environment a n d the factors constraining the speed of risk management technology up-gradation. and it influences the price also. Reviewed the various factors influencing the equity price and price eamings ratio He is of the opinion that equity prices are affected primarily by financial risk considerations that. and non. Investment managers have started upgrading their risk management practices a n d systems. He observed that risk measurement and estimation problems constrain the speed of up-gradation. Also. Specify what types of risks are rewarded and what types are not. Standardize risk measures. Come up with a measure for risk that is universal b. in turn. to be useful. affect earnings and dividends. He opined that a risk measure. d. to enable analysis and comparison. He also stated that market risk in equity is much greater than in bonds. He disclosed that many analysts follow price earnings (P/E) ratio to value equity. has to apply to all investments whether stocks or bonds or real estate. He opined that the perception and management of risk is crucial for players a n d regulators in a market oriented economy. c. new instruments of risk hedging would become available. which is equal to market price divided by eamings per share.

B. foreign exchange risk. These stages are investment policy. industry of security and fixed vs. She concluded that the better the risk information and control system the more risk a bank can assume prudently and profitably.Valuation of investments: The third step is perhaps most important consideration of the valuation of investments. classify risks and develop the necessary technical and managerial expertise to assume risks. In the case of manufacturing companies. the risk is traditionally classified as business risk and financial risk. in general. the next step is to analyses the securities available for investment. therefore. valuation of securities and portfolio construction. He must make a comparative analysis of the type of the industry. investments value. The primary concern at this stage would be to form beliefs regarding future behavior or prices and stocks. Embracing scientific risk management practices will not only improve the profits and credit management processes of banks. Suseela Subramanian (1998) commented on the risk management processes of banks. an element of liquidity and quick convertibility of securities in to cash. A. 2.8 THE INVESTMENT PROCESS-STAGES IN INVESTMENT: The investment process is generally described in four stages. but will also enable them to nurture and develop mutually beneficial relationships with customers. Investment Policy: The first stage determines and involves personal financial affairs and objectives before making investments. Banks. C. liquidity risk. She revealed that banks need to do proper risk identification. Investment Analysis: When an individual has arranged a logical of the types of the investments that he requires on his portfolio. It may also be called preparation of the investment policy stage. be considered appropriate for identifying investment assets and considering the various features of investment. investment analysis. is taken to be the present worth to the . variable securities. The investor has to see that he should be able to create an emergency fund. This stage may. country and sovereign risk and insolvency risk.companies and manufacturing companies. financial institutions and nonbanking financial companies are prone to various types of risks important of which are interest rate risk. the expected returns and associated risk. market risk.

d. abnormal returns were not likely to be achieved. Each asset must be valued on its individual merit. and not less so in the field of investment. we will receive the returns that are consistent with it. Finally the portfolio should be constructed. Skill is needed to evaluate risk and returns associated with an investment decision. Consisting of safety and growth of principal. Portfolio Construction: As discussed under features of investment programmed. To be successful investor. and allocation of savings to different investments The success of every investment decision has become increasingly important in recent times. Making sound investment decision requires both knowledge and skill. one should strive to achieve no less than the rate of return consistent with the risk assumed. performance should be measured against alternative investment. against the fall in the real value of savings and capital. we believe that we do better than the level of return warranted by the level of risk assumed.9 SUCCESS IN INVESTMENT: Success in most things is relative. Genuine success also means winning the battle against inflation. then success must be . The investor has to bear in mind the value of these investments. But is this success? If markets are efficient. tax position and acceptability of risk. The trick is to assess the level of risk we wish to assume and make certain that the collection of assets we buy fulfills our risk expectations. available to the investor within those constraints. Success in investment means earning the highest possible return with the constraints imposed by the investor‘s personal circumstances-age. and so the best one can hope for return consistent with the level of risk assumed. As a reward for assuming this level of risk. Comparison of the value with the current market price of the asset allows a determination of the relative alternativeness of the asset. family needs liquidity requirements. Investment pattern of investors on different products appropriate sets of weights have to be applied with use of the forecasted benefits to estimate the value of the investment assets. or combination of investment. If possible.owners of the futures benefits from investments. selection of investment. Knowledge is required regarding the complex investment alternatives available in the economic environment. liquidity of assets after taking into account the stage involving investment timing. If however. 2. portfolio construction requires knowledge of the different aspects of securities.

Investment pattern of investors on different products Secondly. Moreover. and one‘s own knowledge. an investor must have a rational approach to portfolio construction and management. skills. the quality of these securities is not consistent with the stated investment goal and usually a portfolio contains too many speculative securities. But personal direct investment should not be overlooked.measured in these terms. In analyzing the portfolios of individual investors. the most common errors observed are: Firstly. Investments should be looked at in terms of what they contribute to the overall portfolio. To be successful under the first definition. grossly under-valued investments are rarely easy to come by. portfolio is over diversified. hobbies and acquaintances can also be put to advantage. many individual investors are afraid to take losses. We are really talking about outperforming the average of the participant in the market for assets. Inside Information. To be successful under the second definition. all too often. but not denoted by. Thirdly. Investors expect returns proportional to the risk assumed. and performance tables are available to give some guidance. Thus we are left with two definitions of success. largely dominate investment markets. Institutional investment will probably play some part. As a consequence. But care must be exercised here. rather than their merits in isolation. The investor should be aware of. Investors expect abnormal returns for the risk assumed. many portfolios suffer from overconcentration in one or two issues. the fact that professional investors in particular. they want to wait for . particularly in the obvious area of Turk ownership. then one can imagine simply because of the failure of investors to clearly define their objectives and assess their financial temperaments. (ii) Success is achieving a rate of return in excess or warranted by the level of risk assumed. Dumb Luck Whether and to what extent anyone is likely to possess these characteristics and consistently be able to outperform the market by the level of risk assumed is critical issue. More money has been lost in the stock market. an investor must have at least one of the following: Superior Analytical Skill. Reasonably efficient diversification is the key. Investment pattern of investors on different products not indicate success in this sense. the stock market. (i) Success is achieving the rate of return warranted by the level of risk assumed. And if we realize higher return we must be certain that we are not assuming higher risks consistent with those returns in order to measure our success. containing so many issues that the investors cannot follow closely the development in those companies. Superior Forecasting Ability. he should beware of books subtitled. Fourthly.

they visit the offices of brokers to get advice and application forms. they apply themselves assiduously. Sell decisions are as important as buy-decisions. or greed. Physically Difficult Approach Many investors seem to follow this approach. For those who determine to win the loser‘s game. they read CMIE reports to learn about the developments in economy and various industrial sectors. they read the columns in technical analysis. Do the things do best? Make ‗fewer‘ but ‗better‘ investment decisions. Know your policies very well and play according to them all the time. 3. for three principal reasons: 1. Investors should spend at least equal time in making sell-decision. The secondary market. issues in the primary market have been priced very attractively. without realizing it. do not have a plan. They follow the budget announcements intently. they follow developments in the companies. They operate on the premise that if they can be a step ahead of others. 2. 2. and even doggedly. and they apply regularly in the primary market. they don‘t learn from their mistakes and sight of their financial goals for the timeframe of the investment objectives under pressure of hope. fear. most investors. . Concentrate on your defences. thanks to limited competition till almost 1991. Finally. They try to wait for the bottoms to buy and tops to sell. diligently. most serious of all some investors consider only profit potential never the risk factor. they will outperform the market. they solicit information from company executives. it is required: 1. Play your own game.their stock to come back to the price they paid. was characterized by numerous inefficiencies that provided rewarding opportunities to the diligent investor. Most investors spend too little time on sell-decisions. wittingly or unwittingly. The physically difficult approach seems to have worked reasonably well for most of the investors in India since the late 1970s to the early 1990s. they read investment columns written by the so called ‗experts‘. In a nutshell. They look at the newspapers and financial periodicals to learn about new issues. and they attend seminars and conferences. Fifthly. Typically. They are buying and selling and believe is going where the action is instead of sticking to an investment goal.

an unusual skill. or a touch of clairvoyance. Investment pattern of investors on different products the crucial point of loser‘s game is to put the balance sheet and the income statement through a fine screen. Its operational guidelines are as follows: 1. Remember the old saying.3. however. 3. The psychologically difficult approach essentially calls for finding ways and means of substantially overcoming fear and greed. Things. the second one is intellectually difficult. the scope for earning superior returns in the secondary market has diminished as the degree of competition and efficiency is increasing. This approach has been followed mainly by the highly talented investors who have an exceptional ability. it appears that there are three different ways of earning superior riskadjusted returns on stock market. 2. Likewise. bailed out even inept investors. Do not try to forecast stock prices. a rare perceptiveness.10 THREE APPROACHES TO SUCCEED AS AN INVESTOR: As Charles Ellis argued. Rely more on hard numbers and less on judgment 4. thanks to the emergence of hundreds of new. have changed from mid-1995. and the third one is psychologically difficult 13. An advancing price-earnings multiple. The opportunities for subscribing issues in the primary market have substantially dried up as companies. A fool and his money are quickly parted. Develop an investment policy and adhere to it consistently. Intellectually Difficult Approach the Intellectually Difficult Approach to successful investing calls for developing profound understandings of the nature of investments and hammering out a strategy based on superior insights. in general. 2. quite understandably. This is the first step in making sure to avoid a mistake and will help the investor to keep away from letting the excitement make him move too quickly. are placing securities with institutional investors at prices that are fairly close to the prevailing market prices. Maintain a certain distance from the market place . The first one is physically difficult.

Investment pattern of investors on different products the second difference is the consideration of the time period. Time period. buying low and selling high. Decisions safely. judgments on considerations and movement in the performance of stock market. which are based on the factors of: 1. they can also find relationships that aren‘t there. 2. Thus. Risk. investment is distinguished from speculation in three ways.11 INVESTMENT AND SPECULATION: Traditionally. Market behavior profitability and information. 2. Investment pattern of investors on different products wishes experts cannot only analyze information incorrectly. Return it is consistent and high returns. it is speculation. A longer-term fund allocation is termed as investment. but they are psychologically difficult to follow. Capital Gain The distinction between investment and speculation emphasizes that if the motive is primarily to achieve profits through price changes. Capital gains.5. liquidity. For one day with the objective. If purchase of securities is preceded by proper investigation and analysis and review to receive a stable return over a period of time. Period. making large capital gain is associated with speculation. 1. 2. Investment Speculation Time Horizon Long-term time Short-term planning framework beyond 12 holding assets even months. it is termed as investment. A shortterm holding is associated with trading for the ‗quick turn‘ and is called speculation. Use of funds Own funds through Own and borrowed savings funds. 3. Face uncertainty with equanimity these guidelines look simple. The . though moderate over a long risk of loss is high. The bulk of the investors this appears to be only sensible approach to improve the odds of their investment performance. Risk it has limited risk.a phenomenon called illusory correlation. There are high profits and gains. stability.

it will be appropriate to state that some financial experts have called investment ‗a well grounded and carefully planned speculation‘. These are (a) the purchasing power risk – In other words. there are certain non manageable risks which are beyond the scope of personal power. There has to be a constant review of securities to find out whether it is a suitable investment. which are permanent for investment. or good investment is a successful speculation. Risk. These distinctions also draw out the fact that there is a very fine line of division between investment and speculation. These risks affect both the speculator and the investor. The investor constantly evaluates the worth of a security through fundamental analysis. 2) Wrong timing of investment. which identify securities. investment is considered to involve limited risk and is confined to those avenues where the principal is safe. ‗Speculation‘ is considered as an involvement of funds of high risk. Risk The word ‗risk‘ has a definite financial meaning. whereas the speculator is interested in market action and price movement. An example may be cited of stock brokers‘ lists of securities which labels and recommends securities separately for investments and speculation purposes. investment and speculation are a planning of existing risks. Therefore. 3. general indicators to help and understanding between the terms investments and speculation. Investment pattern of investors on different products the risks are caused by the following factors: 1) Wrong decision of what to invest in.distinction between investment and speculation is helped to identify the role of the investor and speculator. To conclude. No investments are completely risk-free. Even if it safety of principal and interest are considered. it becomes gambling. High risk and low risk are. it is the fall in real value of the interest and the principal and (b) the money rate risk or the fall in market value when interest rate rises. If artificial and unnecessary risks are created for increased expected returns. therefore. There are no established rules and loss. It refers to possibility of incurring a loss in a financial transaction. however. 3) Creditworthiness of the issuer: The securities of Government end semi-Government bodies are more credit worthy than those issued by the corporate sector and much less secure are those in the . is a matter of degree and no clear-cut lines of demarcation can be drawn between high risk and low risk and sometimes these distinctions are purely arbitrary. In a broad sense.

The totality of the investor perception and subjective factors influence the events in the market which are unpredictable and give rise to risk. secured by collateral or not. Systematic Risks Purchasing Power Risk: 19 Interest Rate Risk: The return on an investment depends on the interest rate promised on it and changes in market rates of interest from time to time. following the changing flow of the information or expectations. 4) Maturity period is length of investment: The longer the period. The market activity and investor perceptions change with the changes in interest rates. private limited companies share and shares of unlisted companies are more risky. namely. loans etc maturity of the periods and the creditworthiness of the issuer of securities. stocks. bonds. 7) Terms of lending such as periodicity of servicing. arising out of the market. affects the riskiness of investments due their effects on returns.unorganized sector like indigenous bankers. The costs of funds barrowed by companies or stockbrokers depend on interest rates. acts of god etc. and the total principal due to be refunded  Market Risk: This arises out of changes in Demand and Supply pressures in the markets. which is not controllable by the investor. chit funds etc. shroffs. Investment pattern of investors on different products Systematic Risks are out of external and uncontrollable factors. 19. while a judicious mix of investments in small quantities may be less risky. nature of the industry and state of the economy . which is not controllable. 6) Method of investment. Reference was made to two types of Risk of investor: • Systematic Risks• Unsystematic Risks1. redemption periods etc. the more risky is the investment normally. These interest rates depend on nature of instruments. 9) National and international factors. 5) Amount of investment: The higher the amount invested in any security the larger is the risk. 8) Nature of the industry or business in which the company is operating. expectations. But basically the monetary and credit policy.

This business risk is sometimes external to the company due to changes in government policy or strategy of competitors or unforeseen market conditions. Examples of Unsystematic Risks Default or Insolvency Risk: The barrower . In other words systematic risk refers to that portion of the total variability of the return caused by common factor affecting the prices of all securities alike through economic. political and social factors. Cost pushed inflation is caused by rise in the costs. Business Risk: This relates to variability of business. strength of competitors etc. lower margins. wage rises and profit squeezing etc. labour problem. This element of purchasing power risk is inherent in all investments and cannot be controlled by him. input supplies. delayed receivables and falls in current assets or rise in current liabilities. which in turn depend on the market conditions for the product mix. through such factors as management failure. sales income. raw materials problem or inadequate supply of electricity etc. Examples of Systematic Risks Financial Risk: This relates to the method of financing. Demand-pull forces operate to increase prices due to inadequate supplies and rising demand. These problems could no doubt to be solved. labour strikes. Unsystematic Risks. due to wage rise or rise in input prices. 2. adopted by the company. relating that firm or industry. but they may lead to fluctuate.. high leverage leading to larger debt servicing problems or short-term liquidity problems due to bad debts. raw material scarcity etc. They may be internal due to fall in production. The internal business risk leads to fall in revenues and in profit of the company. The unsystematic risk can be reduced by the investor through proper diversification and planning a proper investment strategy for the purpose. Investment pattern of investors on different products Inflation or rise in prices lead to rise in costs of production. In other words unsystematic risk refers to that portion of the total variability of the return caused due to unique factors. The return expected by the investors will change due to change in real value of returns. but can be corrected by certain changes in the company‘s policies.Unsystematic Risks emerge out of the known and controllable factors. profits etc. The increase in demand may be caused by changing expectation of future interest rates and inflation or due to increase in money supply or creation of currency to finance the deficits of the government. While the systematic risk is common to all companies and has to be borne by the investor and compensated by the Risk Premium.and a host of other factors. internal to the issuer of the securities or companies.

or its policy shown in fiscal or budgetary aspects etc. or delay the payments due. 2.12 Marketability Risks: Marketability Risks. attached to the security. All the above types of risks are of varying degrees. Some of such identifiable risks are: . such as interest installments or principal repayments. But sometimes the risk is caused by acts of God and there may be no return at all. which can be listed. if within a short span. size and effect. if the company runs in to losses or reduced profits. The barrower‘s credit rating might have fallen suddenly he became default prone and in its extreme form it may lead to in earnings. these may lead to fall in returns to investors or negative returns. fallowing the changes in the government. through changes in tax rates. they may vary in form. evaluate and allocate Management Risks: Management Risks. Proper financial planning and other financial adjustments can be used to correct this risk and as such it is controllable. such as capability. Investment pattern of investors on different products insolvency or bankruptcies In such cases the investor may get no return or negative returns. or vice versa Such risks may arise due to some features of securities. due to errors or inefficiencies of management. From the above discussion. or erosion of real value of income and wealth of the investor. it is established that investment is an attempt to carefully plan. Normally the higher the risk taken.or issuer of securities may become insolvent or may default. An investment in a healthy company‘s share might turn out to be a waste paper. causing losses to the company. the company became sick and its share price tumbled below its face value. resulting in uncertainty or variability of return. Other Risks In addition to the above major risks both in controllable and uncontrollable categories. but in actual practice. loss of income and capital losses. Sometimes.. which may go adverse to the investor. there are many more risks. imposition of controls or administrative regulations etc. profits and dividends to share holders. by the deliberate mistakes of management or acts of God.6 Investment and Gambling The difference between investment and gambling is very clear. involving loss of liquidity or loss of value in conversions from one asset to another say. or lack of sinking fund or Debenture Redemption Reserve fund. Political Risks: Political risks. the higher is the return. from stocks to bonds. 2. for repayment of principal or due to conversion terms.

sugar. Commodity Assets Commodities are a new form of investment in India. Commodities are also in the form of metal like gold. which are in the form of land and buildings. coffee and other grains.Financial Assets Real Assets Real assets refer to tangible assets. These assets have a physical appearance. game of cards. Investment pattern of investors on different products funds in various investment outlets which offers safety of principal. Gambling is quite the opposite of investment. rubber. Traders hedge or transact in commodities to make gains. Gambling is based on tips. It also consists of items like cotton oil and foreign currency. diamonds. Typical examples of gambling are horse racing. Derivatives introduced in the Indian market have a great potential for arbitrage transactions. Investment and Arbitrage Investment is usually a planned method of safely putting ones savings into different outlets to get a good return. It connotes high risk and the expectation of high returns. or artifacts. moderate and continuous returns and long-term commitment. gold. Short-term gains can be expected through such transactions. Commodity assets consist of wheat. An investor can also be an arbitrageur if he buys and sells securities in more than one stock exchange to take advantage of the price differentials in such exchanges. . Arbitrage is the mechanism of keeping one‘s risk to the minimum through hedging and taking advantage of price differences in different markets. rumours and hunches. Hedgers. . The simultaneous purchase of the same or similar security in two different markets would be an arbitrage transaction. speculation and gambling give us a basic idea of their nature. aluminum and copper. These distinctions between investment. non-scientific and without knowledge of the exact nature of risk. silver. it is unplanned. potatoes. Importers and exporters invest in commodities to diversify their portfolios. Arbitrage transactions help in enhancing efficiency and liquidity in the stock market and in increasing the volume of trade.movable. speculators and arbitrageurs can make riskless profits through the arbitrage process. It consists of uncertainty and high stakes for thrill and excitement. silver. lottery etc. purpose and role. These assets are used to produce goods or services. furniture. They may be marketable or non-marketable. They may also have the feature of being movable or non.

A reasonable stable price level. Neither condition is satisfactory. economic and political considerations. efficiency and growth are ensured from the competitive forces of private enterprises. Deflation is equally disastrous because the nominal values of inventories. which frames adequate legal safeguards. Business activities are marked by social. contributes towards proper control. Most of the investments such as bank deposits. An example of the evil effects of deflation can be cited for the period 1929-1933 in the United States when the shrinkage in nominal values came to a point of producing wholesale bankruptcy. there are four basic considerations. plant and machinery and land and building tend to shrink.disciplined growth oriented investment market and protection to the investor.2. In India. leaving the investor with less total purchasing power than he had at the time of saving. the monetary policy should neither promote acute inflationary pressures nor prepare for a deflation model. Statutory control exerts discipline and curtails some element of freedom. Price inflation destroys the purchasing power of investments. Legal Safeguards A stable government. Thrift is also penalized when the net interest after taxes received by the investor is less than the rise in the price level. it also discernible in peace conditions especially in developing countries because of huge government deficit in creating infrastructure. It is important that the economic and political factors are favourable. A proper monetary policy will give direction to the investment outlets. Investment pattern of investors on different products . Inflation occurs generally in unstable conditions like war or floods but in the last decade. Investors will be willing to invest their funds if they have the assurance of protection of their contractual and property rights. which foster growth and bring opportunities for investment. economic well being and a well. In India. life insurance and shares are payable in the currency of the country. Generally. A Stable Currency A well-organized monetary system with definite planning and proper policies is a necessary prerequisite to an investment market. Freedom. As far as possible. the investors have the dual advantage of free enterprise and control. the political climate is conducive to investment since the new economic reforms in 1991 leading to liberalization and globalization. good government.13 Factors Favourable For Investment: The investment market should have a favourable environment to be able to function effectively. which is produced by wise monetary and fiscal management. encourages accumulation of savings and investments.

there is the presence of a large number of institutions and services. commercial banks. mutual funds and venture capitalists leasing companies have been opened up to private financing agencies. Apart from these. These financial institutions and development banks offer a wide variety of policies for encouraging savings and investment. These institutions lend an element of strength to the capital market and promote discipline while encouraging growth. development banks. investment companies. there has been a development of the private corporate sector. Insurance companies. for rural areas and agriculture. Thus. merchant bankers and portfolio management. Foreign banks have been allowed to do business. investment bankers and mortgage bankers. Apart from putting aside . Investment pattern of investors on different products Choice of Investment The growth and development of the country leading to greater economic activity has led to the introduction of a vast array of investment outlets. leasing. Since 1991. housing finance. The Life Insurance Corporation and Unit Trust of India offer a wide variety of schemes for savings and give tax benefits also. At the state level. The financial institutions in existence in India are mutual funds. factoring and forfeiting. direct them to productive uses and helps the investment market go grow. Commercial banks and financial institutions also act as mortgage bankers in giving mortgage loans and servicing the loans.Existence of Financial Institutions and Services The presence of financial institutions and financial services encourage savings. Mortgage bankers sometimes act as merchants and sometimes as agents on mortgage loans generally on residential properties. life insurance companies. In India. They serve as middlemen between investors and borrowers and perform collateral service in connection with loans. the National Bank of Agriculture and Rural Development (NABARD). hire purchase and consumer finance. The financial services include venture capital. there are a large number of financial institutions under Central Government and State Governments and rural bodies that have encouraged the growth of savings and investment. Many new financial institutions have emerged in the private sector. They buy bonds and stocks of companies for re-sale to investors. there are State Financial Corporation. The investment bankers are distinguished from security brokers who act as agents in buying and selling already issued securities for commission. Investment bankers are merchants of securities. there is a well-organized network of development banks such as the Industrial Development Bank of India (IDBI). Industrial Credit Investment Corporation of India (ICICI) and Industrial Finance Corporation of India (IFCI). which channel the funds in productive directions.

industrial performance. and company performance before taking an investment decision. Long Term Investment – When investor invests money for more than three to five years then it is called long term investment. financial status and other related information will help to choose investment avenues that will outperform the market and provide consistent gain to the investor. Investment pattern of investors on different products rom the economy. strength. managerial capabilities. fixed bank deposits.savings in savings banks where interest is low. insurance etc Company Analysis: Company analysis involved choice of investment opportunities within a specific industry that consists of several individual companies. 2. fixed deposits and mutual funds schemes. for one to three years. A fundamental analysis believes that analyzing the economy. its past performance vis-à-vis its competitors etc. life insurance.It is an investment made by the investor for very short period of time i. liquid funds etc. Investment pattern of investors on different products o Cross study of performance of the . Such as investment in bank. industry. investors have the choice of a variety of instruments. and companies. It tries to forecast the future movement of capital market using signals. Fundamental analysis of various investment alternatives: Before investing in various investment alternatives fundamental analysis is very necessary. Types of investment: 1. The question to reason out is which is the most suitable channel? Which media will give a balanced growth and stability of return? The investor in his choice of investment will have to try and achieve a proper mix between high rate of return and stability of return to reap the benefits of both. How has the company been faring over the past few years? Seek information on its current operations. Fundamental analysis is the examination of the underlying forces that affect the interests of the economy. management. PPF. money market. Such as investment in bonds. provident fund. industrial sectors. The three golden rules for all investors are: Invest early Invest regularly Invest for long term and not short term One needs to invest for Earn return on your idle resources Generate a specified sum of money for a specific goal in life Make a provision for an uncertain future To meet the cost of inflation.e. Short term Investment. It also examines the economic environment. Some of the instruments available are equity shares and bonds. production. growth plans. company Fundamental analysis requires an examination of the market from broader prospective. mutual funds.

and 10% in cash equivalents. and age. such as CDs and money market accounts. 2. and cash equivalents. These investors want to avoid risk — particularly the risk of losing any principal (their original investment) — even if that means they‘ll have to settle for very modest returns. and volatile sector funds — in order to increase their potential for higher returns.g. which may lose value. conservative investors feel that safeguarding what they have is their top priority. The risk bearing capacity of investor is a function of personal. while some have an affinity of risk. smallcaps. Competition over the industry life cycle Moderate investor‘s Moderate investors want to increase the value of their portfolios while protecting their assets from the risk of major losses. expenditure pattern.rated municipal bonds. E. they may be willing to invest a modest portion of their principal in higher risk securities — such as international stock. aggressive. While they will tend to favor blue chip and other large-cap stocks.industry. risk avoiders. a moderate investor might use an allocation model that has 60% in stock. financial market have different attitude towards risk and return. especially over the short term. and situational factors such as income. They‘re generally reluctant to invest in stocks. . Categories of Investors While there are as many investing styles as there are investors. Some investors are risk averse.bearing capacity. moderate. For example.14 Investor: Investor is a person or an organization that invest money in various investment sources for specific objective. A person with higher income is assumed to have higher risk. such as Treasury notes or high. 30% in bonds. family size. Conservative investors generally. economical. most people fall more or less into one of three broad categories: conservative. Industry performance over times. Prediction about market behaviors. environment. Differences in industry risk. or risk bearers. Conservative investors allocate most of their portfolios to bonds. Attitude of investment is different in each alternative. Thus investor can be classified as risk skiers. When conservative investors do venture into stocks they‗re often inclined to choose blue chips or other large-cap stocks with well-known brands because they tend to change value more slowly than other types of stock and often pay dividend income.

can be the most profitable in the long run. who are willing to make a long-term commitment to the stocks they buy. and then. one must ensure to: o Obtain written documents explaining the investment o Read and understand such documents o Verify the legitimacy of the investment o Find out the costs and benefits associated with the investment o Assess the risk-return profile of the investment o Know the liquidity and safety aspects of the investment o Ascertain if it is appropriate for your specific goals o Compare these details with other investment opportunities available o Examine if it fits in with other investments you are considering or you have already made o Deal only through an authorized intermediary o Seek all clarifications about the intermediary and the investment o Explore the options available to you if something were to go wrong. with the expectation that they will30. Some of them are marketable and liquid while others are non-marketable and some of them also highly risky while others are almost risk less. It‘s best suited for investors with a long-term investing horizon of 15 years or more. Investment pattern of investors on different products l realize greater returns. such as bonds. risk preference. An aggressive investing style is definitely not for the faint of heart. The investor has to choose Proper Avenue among them.Aggressive investor‘s Aggressive investors concentrate on investments that have the potential for significant growth. many aggressive investors will have significant holdings in more speculative stocks and funds.and small-cap stocks and funds may make up the core of their portfolios. combined with a well diversified portfolio. But history has shown that an aggressive investing approach. numbers of investment avenues are available for the investors. and return expected Investment avenues can broadly be categorized under the following heads Corporate securities Equity shares Preference shares Debenture/Bonds GDR‘s/ADR‘s Deposit in bank and non banking companies Post office deposits and certificate o Life insurance policies o Provident fund schemes Government and semi-government securities o Mutual fund and schemes Real estate . and the patience to stick to a long-term buy-and-hold investing strategy through inevitable market downturns. Since aggressive investors focus on growth. Before making any investment. such as emerging market and sector mutual funds. While large. Investment pattern of investors on different products Investment Avenues: In India. depending upon his specific need. make the investment. they are usually less inclined to hold income producing securities. if satisfied. Aggressive investors might allocate from 75 to 95% of their portfolios to individual stocks and stock mutual funds. They are willing to take the risk of losing some of their principal.

As investors seek to diversify their equity holdings. When company makes profit shareholder receives their share of the profit in form of dividends. The central or state government corporations and similar institutions sell bonds.1. (c) Debentures and Bonds It is a fixed income (debt) instrument issued for a period of more than one year with the purpose of raising capital. It is lie in between pure equity and debt. A GDR issued in America. Investor can opt for this type of investment when their risk performance is very low. Corporate securities: (a) Equity share Total equity capital of a company is divided into equal units of small denominations. is an American Depositary Receipts. Also. (ii) The return Investment pattern of investors on different products of capital on winding up of the Company. (d) Depository Receipts (GDRs/ADRs) Global depository receipts are the instrument in the form of a depository receipts or certificate created by the overseas depository bank outside India and issued to non-resident investors against ordinary shares. But preference shares cannot be traded. These are issued to the public only after a public issue of ordinary shares. In addition. called the Maturity Date. unlike equity shares. (b) Preference shares Preference share as that part of share capital of the Company which enjoys preferential right as to: (i) Payment of dividend at a fixed rate during the lifetime of the Company. each called a share. the option of . when company performs well and the future expectation from the company is very high. Many types of debenture and bonds have been structured to suit investors with different time needs. Debenture instruments require scanning the market and choosing specific securities that will cater to investment objectives of the investor. Though having higher risk as compared to bank fixed deposits. Preference shares also get traded in the market and give liquidity to investor. bonds and debentures do offer higher returns. and are redeemed after a pre-decided period. Preferential Shareholders do not have voting rights. the price of the companies share goes up in the market. A bond is generally a promise to repay the principal along with a fixed rate of interest on a specified date. Investor can invest in shares either primary market offerings or in the secondary market. The holders of such shares are members of the company and have voting rights.

by way of fixed deposits. Longer dated options are called Warrants and are generally traded over-the counter. Company fixed deposits for a manufacturing company the term of deposits can be one to three years. Investment pattern of investors on different products generally have lives of up to one year. Bank fixed deposits Fixed Deposits with Banks are also referred to as term deposits. which offers low interest (3. For instance. investors should identify the capitalization and risk characterizes of the instrument and the companies‘ performance in the home country. while investing in such securities. 3. an amount equal to 25 percent of its net worth from the public and an additional amount equal to 10 percent of its net worth from its share holders. otherwise it is paid quarterly. The warrants act as a value addition because holder of the warrant has the right but not the obligation to investing in equity at the indicated rate. savings bank account. Bank FDs is likely to be lower than money market fund returns.Savings bank account with commercial bank Broadly speaking. . The majority of options traded on exchanges have maximum maturity of nine months. 2. Fixed deposits may be recurring deposits where in savings are deposited at regular intervals or fixed deposits of varying maturities or with the varying notice periods such as 15 days. 4. A non banking finance company. An option contract often sold with another security. from 4 to 9%. If the deposit period is less than 90 days. A manufacturing company can mobilize. Warrants are generally detachable. however can mobilize a higher amount. Fixed Deposits in banks are for those investors.5% ). whereas for non-banking finance company it can vary between 25 months to five years. The interest rates on company deposits are higher than those on bank fixed deposits. money market/liquid funds and fixed deposits with banks may be considered as short-term financial investment options: Savings Bank Account is often the first banking product investors use. the interest is paid on maturity. it is lower for fixed deposits of shorter term and higher for fixed deposits of longer term. In general. making them only marginally better than fixed deposits. corporate bonds may be sold with warrants to buy common stock of that corporation. who have low risk appetite.GDRs and ADR‘s is very lucrative. The interest rates on these deposits vary depending on the maturity period. etc. (e) Warrants a warrant is a certificate giving its holder rights to purchase securities at a stipulated price within a specified time limit.

1. Post Office Time Deposits (POTDs): Similar to fixed deposits of commercial banks. which is paid monthly. Monthly Income Scheme of the Post Office: Post Office Monthly Income Scheme is a low risk saving instrument. Maximum amount is Rs. Some of its schemes include life policies. which can be availed through any Post Office. Public Provident Fund: A long-term savings instrument with a maturity of 15 years it can be made in monthly installments with a minimum of Rs. 1. A bonus of 5% is paid at the time of maturity. subject to a penal deduction of 2%. but has nomination facility. 6. After 6 months. on withdrawals made between 6 months and 1 year. One withdrawal per financial year can be made any time after 5 years from the end of the year in which the subscription is made. Life insurance policies Insurance companies offer many investment schemes to investors. which can be invested. On withdrawals after 1 year. endowment assurance policy. However. also have the advantage of earning a reasonable interest on their investment insurance premiums. no interest is payable. Premature withdrawal is permitted if deposit is more than one year old. POTDs can be made in multiples of Rs 50without any limit. The interest rates on POTDs are. convertible whole life assurance policy. It has a maturity period of 6 years. is Rs. jeevan Saathi. Insurance policies.000/-. The 5% bonus is also denied. A POTD account can be pledged.000/and additional investment in multiples of Rs. Investment pattern of investors on different products permitted up to 6 months.000 per annum and interest payable at 8% per annum compounded annually. It provides an interest rate of 8% per annum. 00.000/-(if held jointly) during a year. in general.60. interest is paid for the period the deposit has been held. These schemes promote saving and additionally provide insurance cover. 00. but before the term of deposit. slightly higher than those on bank deposits. 8.000/. The interest is calculated half-yearly and paid annually. LIC is the largest life insurance company in India. It is not transferable. withdrawals are permitted. A deduction of 1% is levied from the principal amount if withdrawn prematurely. Minimum amount.(if Single) or Rs.100 and a maximum of Rs. 6. Withdrawal is limited to 50% at the end of . 3. 7.5. while catering to the risk compensation to be faced in the future by investor. Deposits in 10 years to 15 years Post Office Cumulative Time Deposit Account can be deducted before computing the taxable income under Section 80c. money back policy etc.

called the Maturity Date. . diversified funds. All subscription of PPF is completely free and balances in PPF are not taken into account for wealth tax purpose. which are short term instruments. Mutual fund these are funds operated by an investment company. balanced funds. The central or state government. Real estate investment is often linked with the future development plans of the location. corporations and similar institutions sell bonds. Buying property is an equally strenuous investment decisions.the 4th year. On the basis of objective we can categories mutual funds as equity funds/growth funds. close-ended funds and interval funds. 10. Benefits include professional money management. in accordance with a stated set of objectives. debentures etc. A bond is generally a promise to repay the principal along with a fixed rate of interest on a specified date. At present investment in real assets is booming. which raises money from the public and invests in a group of assets (shares. NAV is calculated as the value of all the shares held by the fund. The government issues securities in the money market and in the capital market. It is a substitute for those who are unable to invest directly in equities or debt because of resource. Investment pattern of investors on different products there are various investment source are available for investment which are directly or indirectly investing real estate. Money market instruments are traded in Wholesale Debt Market (WDM) trades and retail segments. Real Estate Investment in real estate also made when the expected returns are very attractive. 11. Mutual fund units are issued and redeemed by the Fund Management Company based on the fund's net asset value (NAV). divided by the number of units issued. time or knowledge constraints. Government and semi-government securities It is a fixed income (debt) instrument issued for a period of more than one year with the purpose of raising capital. tax saving funds. gift funds. buying in small amounts and diversification. Mutual Funds are usually long term investment vehicle though there some categories of mutual funds. which is determined at the end of each trading session. And on the basis of flexibility we can categories them as open-ended funds. liquid funds/money market funds. index funds. minus expenses. Instruments traded in the money market are short term instruments such as treasury bills and convertible bonds. debt/income funds.). 9. such as money market mutual funds. sector funds.

specific categories of metals are traded in the metal exchange. government bodies and mutual funds are the main source of investment information. It has been absurd that on several occasions. websites etc. Investment pattern of investors on different products (iv) Media Press sources such as financial newspapers. silver. With respect to secondary market. these sources also provide analysis of information and in certain instance suggest suitable investment decisions to be made by investor. The Reserve Bank of India also provide useful information relating to the prevent interest rates and non-banking financial intermediaries that mobiles money through deposit schemes. Many of these intermediaries are the agencies of specific instruments especially tax saving instruments. Bullion investment the bullion offers investment opportunity in the form of gold. There are many sources from which investors can gather the required information. and other metals. Sources of study for investors: A look out for new investment opportunities helps investors to beat the market. Such as. the gold market provided a return on investments.12. The bullion market presents an opportunity for an investor by offering returns and the end value of future. (ii) Financial market Stock exchange and regulated bodies also provide useful information to investor to make their investment decisions. Besides information on securities. These intermediaries offer to share their commission from there concerned organization with the individual investor thus investor get additional advantages while investing through intermediaries. (iii) Financial service intermediaries these are intermediaries who promote securities among the public. financial magazine. (i) Financial institutions corporate house. The foregoing discriminations about stock market and investment having under stood its important and its unique optimization in the money market . Many of these enterprises have their own website and post investment related information on their websites. business news channel. when stock market failed. the Securities and Exchange Board of India uses various modes to promote investors education and takes great effort to achieve an investor friendly secondary market in India. provide information related to investment to the public.

The development of Sensex options along with equity derivatives followed in 2001 and 2002. and is sensitive to market sentiments and market realities. The Wholesale Debt Market (WDM) commenced operations in June 1994 and the Capital Market (CM) segment was opened at the end of 1994. including 12 sect oral indices. BSE is the world's number 1 exchange in terms of the number of listed companies and the world's 5th in transaction numbers. In 1996. Investment pattern of investors on different products three segments of the NSE trading platform were established one after another. are classified into A. The SENSEX is constructed on a 'free-float' methodology.The group eventually moved to Dallas Street in 1874 and in 1875 became an official organization known as 'The Native Share & Stock Brokers Association'. Today. An investor can choose from more than 4. Today the NSE takes the 14th position in the top 40 futures exchanges in the world. It has grown exponentially and the market has also witnessed fundamental institutional changes. The market capitalization as on December 31. In 1998. In 2000 the BSE used this index to open its derivatives market. BSE offers 21 indices. However global . the National Stock Exchange of India launched S&P CNX Nifty and CNX Junior Indices that make up 100 most liquid stocks in India. giving the BSE a means to measure overall performance of the exchange. the Futures and Options segment began operating in 2000. There have also been significant improvements in efficiency. The past decade has been quite remarkable for the Securities market in India with the boom in the economy fuelled by better banking system. is India's first stock market index that enjoys an iconic stature. The Indices are owned and managed by India Index Services and Products Ltd (IISL) that has a consulting and licensing agreement with Standard & Poor's. The BSE Index. CNX Nifty is a diversified index of 50 stocks from 25 different economy sectors. Apart from the SENSEX. trading Sensex futures contracts. The Bombay Stock Exchange developed the BSE Sensex in 1986. the BSE became the first stock exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act. expanding the BSE's trading platform. It is an index of 30 stocks representing 12 major sectors. B. T and Z groups. SENSEX. the National Stock Exchange of India launched its web-site and was the first exchange in India that started trading stock on the Internet in 2000. transparency and safety. S. Finally. The NSE has also proved its leadership in the Indian financial market by gaining many awards such as 'Best IT Usage Award' by Computer Society in India (in 1996 and 1997) and CHIP Web Award by CHIP magazine (1999). and is tracked worldwide. 2007 stood at USD 1. In 1956.79 trillion.700 listed companies. which for easy reference.

underwriters.  To promote fair dealings by the issuers of securities and ensure a market place where funds can be raised at relatively low costs.7% in January 2010.  Prohibit insider trading in securities.1% as against an annual gain of 16.2% in the same month last year. While the markets were hurt by the sovereign debt default concerns of Greece and SECs allegations against Goldman Sachs.. Industrial production grew by a mere 0.economic activity decelerated towards the end of the calendar year resulting in investment concerns on account of the sub-prime crisis in the US and other developed nations. as measured by the Index of Industrial Production (IIP).2% in February 2009. Since the markets has taken up word moment from 9th July 2009 from the low of 3. it found some comfort from good set of FY 2009-2010earnings numbers declared by India Inc. while Mining production was at 12. registrar to all issue. . Investment pattern of investors on different products. grew by 15.2%  To regulate and develop a code of conduct and fair practices by the intermediaries involved in the stock market etc.578 on 24th July 2009 due to the Sharpe recovery in global economy as well as the 1 st quarter Results of all major company which has been announced better than expectations. Manufacturing output rose by 16% as against a mere 0..  The Major Functions of SEBI: 40.974 is in the same month of 2009. sub-brokers.400 in the month of 8th July 2009. portfolio managers and such other intermediaries who are associated with securities market  To provide protection to the investors and safeguard their rights and interests such that there is steady flow of savings into the market. In other side National Stock Exchange (NSE) 3. Hence Indian markets are one of the fastest emerging markets in world and attracted by many Foreign intuitional investors. Naturally the effects of this slowdown spilled over into developing economies also and we are looking ahead with some degree of concern over the prospects in the near future.974 to 4. Outlook 2009-10 The Indian markets traded in a very narrow range during April amidst mixed cues coming from global and domestic markets. In recent days economic collapsed in variation of the foreign investors fund main effect of the Indian economy in 20082009 the Bombay Stock Exchange (BSE) the sensex was 13. and17.  Registration and regulation of stock brokers. merchant bankers.6% in December 2009. India‘s industrial output.

Vision. As many as 14 out of the 17 industry groups showed a positive growth during February 2010 compared to the corresponding month of the previous year. Mehta Investment Intermediates Ltd.ago period. brokers.6% in the month under review versus (-) 3% in the year.8% for the same month of 2009. Electricity sector output expanded by 6.4% in February 2010 as against 11. investment consultants and various other agencies involved in new issues. The company is jointly promoted by noted stock market professionals. Mehta. It provides a complete bouquet of products in equity. business associates. spreading investor education. merchant bankers. Mehta and Mrs. Intermediates Goods' output rose by15. & Values.4% versus a contraction of 0. Deena Mehta was the first lady to be elected to the . Asit C.The Regulatory Authority: SEBI The rise in number of investors was also leading to an increase in malpractices on part of the companies. and is a part of the Mumbai-based Nucleus Group of Companies.7% in the same month a year Consumer Durables production expanded by 29. Output in Capital Goods grew by 44. Securities Exchange Board of India (SEBI) was constituted were helpless as the existing legal framework was just not enough.2% in the year-ago period. mission 42. and providing capital market services to clients. depository.7%compared to just 0. The Government and the stock exchanges Realizing this. commodities. You can also become a part of this growing business and assist us in increasing investor base. corporate document management solutions and geographical information systems (GIS). The other group companies are engaged in IT and IT related services such as development of databases. Over the last two decades it has achieved the distinction of being amongst the most trusted and reputed brokerage houses in India. debt.9%in February 2010 as against 6% in the same period in 2009. By the Government of India in 1992 Investment pattern of investors on different products versus (-) 0. forex. Mr. and marketing agents. (ACMIIL) is the most trusted and reputed brokerage house for providing investment-related services in the capital market and money market and depository services in India. derivatives and allied services in India. The growth rate in Basic Goods category stood at 8. Deena A. Asit C. In the year 1986 with a view to offer a one-stop solution to Indian entities for their needs in financial services.1% in the year-ago period. Investment pattern of investors on different products ACMIIL has pan-India presence through its branches. back-office applications for banks. This led to erosion of investor confidence. Relationship…core to our business  Company Managing Director Mrs.

and will need to participate in the financial markets directly or indirectly to protect their financial interests. At Asit C. 1956.  First multiple seat holder and multiple exchange members.  That transparency and fairness are the cornerstones of all dealings.  First limited liability Company to acquire membership on Bombay Stock Exchange. we aim to select a candidate whose goals are aligned with ours. and business development activities. Investment pattern of investors on different products We are currently expanding our business in the retail and institutional segments on the domestic and overseas (NRI/FII) fronts. a thirst to innovate.  Purpose to reach appropriate financial products. services and solutions to every Indian entity.  Quality: Envisioned to be the ―Trusted Financial Intermediary‖. ACMIIL was first such company on the Bombay Stock Exchange. Mumbai. We have select positions open for marketing. should. . a conceptual understanding of the financial markets. the group has etched out a very specific corporate purpose – ―To reach appropriate financial products.  That regulatory/legal compliance ensures economic sustainability. desire to grow within the company. and technology led innovations are necessary preconditions for continuously adding value for all our constituents.‖ It is incorporated as a publicly held limited liability company in India under the Indian Companies Act. meticulousness towards the task on hand. Mehta. sales. First to receive a CRISIL grading for quality of operations and services  First to achieve the ISO quality certification for business processes.  That knowledge rather than capital is the key driver of this business.  That every household can.governing board of the Stock Exchange Mumbai and first and only lady to be the President of Stock Exchange. the company is mostly held by its founder shareholders as follows: 43.  The firsts to our credit:  That product. Currently. back office operations. process. The company was incorporated in the year 1993 under the new enabling provisions for limited liability stock broking companies framed by the Government to encourage limited liability Company in this area. Knowledge about the product. services and solutions to every Indian entity. research.

Investment pattern of investors on different products 2. We foster a culture that rewards talent. & Service standardsGIS (India) Ltd. We are also first stock brokerage house to be graded under the Broker Grading service by Credit Rating & Information Services of India Ltd. This has ensured that the entire organization is driven by the common objective of delivering quality brokerage services that would create a unique brand and top-of-the-mind recall. & compliance: In order to institutionalize business processes. DGCX. our company has moved to a documented customer-centric quality management system. 2009) Investment Centre‘s: 665 (branches.) States & UT covered: 26 Employees: 1002 PRODUCTS AND SERVICES:  Equity – Initial Public Offering (IPO)  Equity – Secondary trading (cash and derivative)  Equity – PMS  Equity – Online Trading  Equity – Depository Services . hard work. EAST INDIA Clearing Bank: State Bank of India Reach and Access (as on July 01. (CRISIL) for our quality of operations and services provided to clients. and accountability and nurtures teamwork. initiative. etc. franchisee.15 ORGANISATION STRUCTURE: Investment pattern of investors on different products MEMBERSHIP:  Cash Market: BSE.an ability to design and follow process are all qualities valued in the company. We are the first brokerage house to be certified under ISO 9001:2000 for the Equity and Debt segments. NSE  Debt: NSE  Foreign Exchange: Accredited by FEDAI  PMS under SEBI License  Merchant Banking: Approved by SEBI under Category I  Commodities: NCDEX MCX. NSE  Derivatives: BSE.

based interface as well as a streamer-based solution called live exchange.  Forex – Interbank broking  Merchant Banking – Amalgamation & Equity and Derivatives Trading: Equity trading is offered to retail clients through different channels in the Bombay Stock Exchange (BSE) Our services: Mergers  Merchant Banking – Private Equity Merchant Banking – Public Offering. etc. The investors can do their own trading through a browser. the National Stock Exchange of India (NSE). Equity – Investment Advisory (fundamental and technical)  Equity – Mutual Fund  Equity . Investors are serviced through a PAN India network of over 650 associates / locations comprising of 585 franchisee and 65 company branches. The company has tied up with leading nationalized.Arbitrage  Commodity . private and co-operative banks to offer share-trading services to the banks' customers. A seamless gateway has been established between the banking and depository software of the bank. & Investment Banking: Institutional Desk: Equity trade execution services are provided to institutional investors both domestic and FII by our institutional desk. for the cash and the derivatives segments. Investment pattern of investors on different products  Debt – Advisory  Debt – Mutual Funds  Debt – Relief bonds. This service is also available through an Interactive Voice Response (IVR) facility for those clients who are unable to access the Internet service at any time. (as on July 2009) .Derivatives  Debt – Government Securities  Debt – Primary Placements. Research and market Online Trading: Investmentz.com is our trading portal that offers online trading to retail investors in the BSE and NSE cash and derivatives segments.

Quick Trade enables you to transact in any share quickly by presenting only the most relevant information. We undertake various initiatives to educate investors and enable them to make informed investment decisions based on their investment profiles. market views/calls. User-friendly design: No part of the website is more . risk appetites. etc. As general information. Advisory Services: Research: Investors are provided with extensive information on markets and companies through hourly market reviews. (MCX). India (NCDEX) and the East India Cotton Exchange Association (EICA) The online trading portal also provides facility to trade on NCDEX. Knowledge Center: Investor Education and Empowerment is essential for inculcating correct investment habits. the Multi Commodity Exchange of India Ltd. Investment pattern of investors on different products available for trade confirmation. Ltd. Video broadcasts of Investment Education Topics.. AsitCommodity Exchange (DGCX). Easy Trading: We have two options for trading: Quick Trade and Regular Trade.com does not guarantee any accuracy of generation. periodic market commentary and recommendations. Mehta Commodity Services Pvt. amalgamations. Investment pattern of investors on different products ACMIIL has been granted a Category I Merchant Banking license by SEBI. fund pay-in and pay-out. One of the group companies is a member of Dubai Gold & Inter-Bank Forex Desk: Our associate company. The company is member of India‘s premier commodity exchanges. databases. private equity. and return expectations.  Support Services C Mehta Forex Pvt. and the Nucleus Investments newsletter. Ltd. The company firmly believes that providing continuous and accurate decision making tools can add substantial value to its investors. It offers services in mergers. Accredited by the Foreign Exchange Dealers‘ Association of India (FEDAI). to clients who actively use our trade execution services. & Derivatives Exchange. Investmentz. which enable them to make informed decisions. undertakes inter-bank forex order execution. Regular Trade gives you full information about the share. namely. public offerings and a full gamut of investment banking services. the company is empanelled with approximately 60 banks and has a reasonable presence in the market. We've added some exciting new features like Advise Me and Online Purchase of Mutual Funds and IPOs. enabling you to take an informed decision. Three important parts of our Investor Education and Awareness Program are: Market Wisdom series. and does not make any claims of any nature in this matter. the National Commodity47.Commodity Trading Service is provided through Our Associate: Asit C. and delivery timings.

liquidity and returns what is Stock market? Equity or Mutual funds? The first step How to select your broker? Why is the stock market not a gambling den? Do operators run the stock market? Why do prices go up and down in the stock market? A Lesson in Options and Futures Sensex 12000. Investor grievance redressed mechanism Risk associated with equity investments etc. which is spread over 600 locations across 25 states and union territories in India. newsletter.12800.. Investment pattern of investors on different products Investment pattern of investors on different products video broadcasts from our head office in Mumbai. which is accessible from any of our branches across the country the last session.What to do? Dividend: What does it mean to investor? Margins and investors Hedge funds Dabba trading Exchangetraded funds Basics of commodities futures market Settlement of trades. our expert in-house fundamental and technical research team conducted an investor education program on crude oil market outlook.  Client Level Risk Management... We would take the precaution and see not to disturb you by excluding your contact details from our marketing list. 50.than three clicks away. SMS. But. Investor Education Topics We have been conducting the Investor Education and Awareness program via video broadcasts through our own network (branches and business associates). an improved user-friendly design and services to benefit our esteemed customers. Message Board: Welcome to our new website! We are pleased to announce some exciting new features. was on February 21. based on our assumption that you would need this information and benefit you in your wealth creation process...  Auto Pay-in / Payout of securities. 2009. phone. you might need privacy and wish us not to contact you for such information. Investment pattern of investors on different products letter. Kindly provide your details so as to not disturb you. The various market wisdom series for general investor education and awareness some of them are as follows: Why do we need financial planning? Investors guide to share markets Safety. Speakers with industry expertise participate in Market Wisdom This is an Investor Empowerment series comprising material prepared to assist investors as they just step into the capital market or when they are in the middle of various curves in the wealth creation process. This ensures speedy access to whatever information you may need. etc... . We have also taken steps to ensure faster loading of pages. at times. email.13000.

(Top Most Grading given to any Good Broking House) It has been marked as a very good broking house as regards to all the criteria given by CRISIL of India. Making a very good turnover and giving directly and indirectly appointment for more than 2500 people in India It has got more than 600 branches network all over India covering all most all states in India. It is an ISO 2000-9001 company. Investment pattern of investors on different products & now serving around 2lakhs clients all over India and abroad . Portfolio information through Internet 24x7. equity research. 365 days Having its leadership position in equity broking. and forex and commodity markets To become the very old brokerage house in India and getting incorporated in the year 1984 got the BSE membership card at the early stages. but looking at the workings and very good Risk management system of the company. In previous year it was in the BQ2 grade. Benefits of Trading with Us: & having secured brokerage grading of BQ1 from CRISIL of India. Focus on wealth creation for the investors. it has been upgraded to BQ1 Strong foundation of Technology. Compliance and Transparency First corporate member of the Bombay Stock Exchange Proven track record for the last 25 years in the stock broking industry First broking house to gain the ISO 9001:2000 certification Presence in 23 states and 650 locations.

CHAPTER-3 .

ANALYSIS AND INTERPRETATIONS .

Preferred to invest your money Table No.66 No 1 1.1 No.66%) as said yes and 1 respondents (1. 3. it is clear that out of 75 respondents 74 respondents (98. .66 74 1 Yes No 1. of respondents Percentage Yes 74 98.33 Interpretation: From the above table.1 Options No. 3.33%) said no for Do you invest you money.33 Total 75 100 Source: Primary Data Graph No. of respondents Percentage 98.

of respondents 52 Percentage 39 25.77 Interpretation: From the above table. 3. 14 respondents (19. . 19 respondents (25.77%) said 35-45 and 3 respondents (4%) said 45-60 for age group of investor. 39 respondents (52%) said 25-35.2 Options No.33 25-35 39 52 35-45 14 19. it is clear that out of 75 respondents.Preferred to Age Group of investors Table No.77 45-60 3 4 Total 75 100 Source: Primary Data Graph No.2 No.33%) as said 1525.33 19 14 3 15-25 25-35 35-45 45-60 4 19. of respondents Percentage 15-25 19 25. 3.

33 10 10 13. of respondents Percentage 18 24 10 13.3 No. 10 respondents (13. 10 respondents (13. of respondents Percentage 24 18 13.33 13 17.3 Options Stock/Shares option 10 13. .33%) as said stock shares opinion. 3.33 18 24 6 8 75 100 Source: Primary Data Graph No. and 13 respondents (17.33 13 17.33 Banks Commodities Real estate Post office Any other Total No.33 18 24 8 6 Stock/Shares option Banks Commodities Real estate Post office Any other Interpretation: From the above table.33%) said real estate.33%) said commodities.Preferred to best investment option Table No. 3. 18 respondents (24%) said banks. 18 respondents (24%) said post office and 6 respondents (8%) said any other for best investment option. it is clear that out of 75 respondents.

30 respondents (40%) said risk lower.33%) said none of these for kind of investment. . of respondents Percentage Risk adverse 17 22. 17 respondents (22.4 Options No.4 No.33 Total 75 100 Source: Primary Data Graph No.33 6 Risk adverse Risk lover Higher risk None of these Interpretation: From the above table. 6 respondents (8%) said higher risk. it is clear that out of 75 respondents.66%) as said risk adverse. and 22 respondents (29. 3.66 Risk lover 30 40 Higher risk 6 8 None of these 22 29.66 17 8 22 29. 3.Preferred to Kind of investor Table No. of respondents 40 Percentage 30 22.

. it is clear that out of 75 respondents 16 respondents (21.33 High risk high return 17 22.5 No.Preferred to investment Pattern Table No.66 High risk high Higher risk return Interpretation: From the above table. 3. of respondents Percentage 75 100 Source: Primary Data Graph No.33%) said high risk.33 High risk low return 5 6.33%) said low risk high return and 9 respondents (17.5 Options Low risk low return 16 21.67 22.66%) said high risk high return. of respondents Percentage 36 27 21.33%) said none of these for investment pattern prefer. 5 respondents (6.33 High risk low Low risk high return return None of these 6.33 16 17 12 9 5 1 Low risk low return 1.67 Low risk high return 27 36 None of these 9 12 Total No.33%) as said low risk low return.66 Higher risk 1 1. 1 respondents (1. 3.33%) said high risk low return and 27 respondents (17. 17 respondents (22.

11 respondents (14.66 Total 75 100 Source: Primary Data Graph No. 3.33 2-3 years 13 17.6 No.66 24 17. 3. 13 respondents (17.33%) as said up to 2 years.66 4-5 years 18 24 More than 5 years 23 30. of respondents Percentage 30.33 10 13 11 14.66 18 23 0-2 years 2-3 years 3-4 years 4-5 years More than 5 years Interpretation: From the above table. 18 respondents (24%) said 4-5 years and 23 respondents (30.66%) said more than 5 years for investment time duration.66%) said 3-4 years. . it is clear that out of 75 respondents 10 respondents (13.33 13.33 3-4 years 11 14.Preferred to investment time duration Table No. of respondents Percentage 0-2 years 10 13.6 Options No.33%) said 2-3 years.

66%) as said yes and 1 respondents (1. 3.7 No. 3. of respondents Percentage Yes 74 98.7 Options No. of respondents Percentage 98.33 Total 75 100 Source: Primary Data Graph No.66 No 1 1. .33 Interpretation: From the above table.66 74 1 Yes No 1. it is clear that out of 75 respondents 74 respondents (98.33%) said no for do you take any professional advice regarding your investment or you take your investment decision at your own choice.Preferred to Professional advice regarding investment Table No.

13 respondents(17. of respondents Percentage 26.66 8 10.66 22.66%) said friends.66 17 10.8 Options No. .66%) as said professional.Preferred to take advice Table No.33 Others 20 26.66 Magazine 13 17.66 Relatives 17 22.66%) said relatives. 8 respondents (10. 17 respondents (22. 3. it is clear that out of 75 respondents 17 respondents (22.66 20 17.33%) said others for If yes then from whom you take advice.66 Total 75 100 Source: Primary Data Graph No.33 Professional adviser Friends Relatives Magazine Others Interpretation: From the above table. of respondents Percentage Professional adviser Friends 17 22.8 No. 3.66 8 17 13 22.33%) said magazines and 20 respondents (17.

33 Cooperative Banks 13 17. it is clear that out of 75 respondents 20 respondents (26.9 No.33 Commercial Banks 10 13. 19 respondents (25. 13 respondents (17.33%) said cooperatives banks and 13 respondents (17. of respondents 26. .33 13.66 Private Banks 19 25.33 75 100 Source: Primary Data Graph No. of respondents Percentage 13 17. 10 respondents (13.33 10 13 13 17.33%) said commercial banks.66 Percentage 25.33 20 19 17.33 Others Total No. 3. 3.66%) as said public and government banks.33 Public / Government Banks Private Banks Commercial Banks Cooperative Banks Others Interpretation: From the above table.33%) said others for if you invest your money in banks then what type of bank you prefer.9 Options Public / Government Banks 20 26.Preferred to money in bank and type of bank Table No.33%) said private banks.

10 No. 3.66%) as said average return. 3. of respondents 30.33 Below Avg. of respondents Percentage Avg. Return 23 30. Return 16 21. it is clear that out of 75 respondents 23 respondents (30.66%) said none of these for what kind of investment return you expect from your investment.10 Options No. 16 respondents (21.33%) above average return.66 Total 75 100 Source: Primary Data Graph No.66 Above Avg. Return Below Avg. Return Above Avg. .33 20 Avg.33 None of these 20 26. 16 respondents (21.Preferred to return on investment Table No.66 Percentage 26. Return None of these Interpretation: From the above table.33%) below average return and 20 respondents (26.33 16 21. Return 16 21.66 23 16 21.

33%) once a quarter.33 Percentage 3 4 Once a month Once a quarter Once a year Whenever there is enough money None of these Interpretation: From the above table.33 13 13 17. it is clear that out of 75 respondents 21 respondents (28%) as said once a month.33 Once a year 25 33.11 No. 3. of Respondents Percentage Once a month 21 28 Once a quarter 13 17.Preferred to frequency of investment Table No.33%) said once a year . 13 respondents (17.33 Whenever there is enough money 13 17. 3.11 Options No. Of respondents 33.33%) as said whenever there is enough money and 3 respondents (4%) said none of these for frequency of investment. 13 respondents (17.33 28 25 21 17.33 None of these 3 4 Total 75 100 Source: Primary Data Graph No. 25 respondents (33. .

22 respondents (29.33%) as said 0-3% of income. .12 No. it is clear that out of 75 respondents 16 respondents (21.66 5%-10% of income 22 29.12 Options No. of respondents Percentage 0.33%) said 5-10% of income and 2 respondents (2.66 Percentage 35 29.66 Total 75 100 Source: Primary Data Graph No.33 16 22 2 0. 35 respondents (46.66%) said more than 10 % of income for what percent of income you invest.33 More than 10% of income 2 2. of respondents 46.3% of income 16 21.66%) said 3-5% of income.3% of income 3% -5% of income 5%-10% of income 2.Preferred to percent of income invest Table No.33 3% -5% of income 35 46. 3. 3.66 More than 10% of income Interpretation: From the above table.33 21.

33 28 17.13 Options With the reference Of Friends/Relatives With the reference Of Chartered Account By reading prospectus and other important documents 13 17. it is clear that out of 75 respondents 28 respondents (37.33%) said by reading prospectus and other important documents and 30 respondents (40%) said with the advice of agents/portfolio manager for taking investment decision. of respondents 37. 3.Preferred to take investment decision Table No. 4 respondents (5.33 13 4 0 With the reference 0 With the reference By reading prospectus and other important documents With the advice of Agents/portfolio Manager 5. 13 respondents (17.33 With the advice of Agents/portfolio Manager Total No.33 4 5.13 No.33 30 40 75 100 Source: Primary Data Graph No. of respondents Percentage 28 37.33%) as said with the reference of friends/relatives. .33 30 Percentage 40 Interpretation: From the above table. 3.33%) with the reference.

13 respondents (36%) decrease and 20 respondents (5. of respondents 42 Percentage 56 Source: Primary Data Graph No.14 No.33%) said remain in the same for factor annual income expecting. it is clear that out of 75 respondents 42 respondents (56%) as said increase. 3.66 Total 75 100 No.33 13 20 Increase Decrease Remain the same Interpretation: From the above table.33 Remain the same 20 26.66 17.14 Options Increase Decrease 13 17. of respondents 56 Percentage 42 26.Preferred to next 3-5 years. . expect your annual income to change Table No. 3.

66 More than 4 years 2 2.66%) more than 4 years for experience in the market.66%) as said less than a year.66 Less than a year 1 years 2-3 years More than 4 years Interpretation: From the above table. of respondents Percentage Less than a year 35 46. . 3.66 40 35 30 Percentage 8 10.66 2 2.66 Total 75 100 Source: Primary Data Graph No.66 1 years 30 40 2-3 years 8 10.15 Options No.15 No. 8 respondents (10. it is clear that out of 75 respondents 35 respondents (46. 30 respondents (40%) 1 year. of respondents 46. 3.66%) said 2-3 years and 2 respondents (2.Experience in the market Table No.

3.16 Options No. of respondents Percentage 48 40 36 30 9 12 Speculation Investment Both Interpretation: From the above table. .16 No. of respondents Percentage 9 12 Speculation 36 48 Investment 30 40 Both Total 75 100 Source: Primary Data Graph No.Trading Preference Table No. 36 respondents (48%) investment and 30 respondents (40%) said both for trading preference. it is clear that out of 75 respondents 9 respondents (12%) as said Speculation. 3.

33%) said self evaluation and 3 respondents (4%) said others for factor influencing the investment decision.33 Advice from Friends 9 12 Self Evaluation Others Total 13 No. it is clear that out of 75 respondents 13 respondents (17. 3. 19 respondents (25. 4 respondents (5.17 No.33%) said review in financial magazine. of respondents Percentage 17. of respondents 36 27 19 12 9 4 5.33 13 Advice from Broker Current news Reviews in Financial Magazines Interpretation: From the above table. .33 3 4 75 100 Source: Primary Data Graph No.Factors influencing the investment decisions Table No.33 19 25.33 3 Advice from Friends Self Evaluation Others 4 Percentage 25. 27 respondents (36%) current news.33 17.17 Options Advice from Broker Current news 27 36 Reviews in Financial Magazines 4 5.33%) as said advice from broker. 9 respondents (12%) as said advice from friends. 3.

33%) low and 24 respondents (32%) said moderate for how much risk are you willing to take.33 24 32 75 100 Source: Primary Data Graph No. of respondents Percentage 57. of respondents Percentage 8 10.Preferred to Risk Taking Table No. 3.66 43 57.66 8 High Low Moderate Interpretation: From the above table.33 43 32 24 10. it is clear that out of 75 respondents. 3.18 Options High Low Moderate Total No. 8 respondents (10. 43 respondents (57.66%) as said high. .18 No.

19 Options High Moderate Low Total No. respondents Percentage of 2 37 36 75 2.33%) said moderate and 36 respondents (48%) as sais low for How much loss are you willing to take.33 37 48 36 2 High 2. it is clear that out of 75 respondents. 3. 37 respondents (49.Preferred to Taking Loss Table No. .66%) as said High. 2 respondents (2. 3.33 48 100 Graph No.19 No. of respondents Percentage 49.66 Moderate Low Interpretation: From the above table.66 Source: Primary Data 49.

66 28 23 17.66%) said between 4-6 lakhs and11 respondents (14.Preferred to Annual Income Table No. 23 respondents (30. it is clear that out of 75 respondents.33 30. . 13 respondents (17. 3.66 11 Less than 2 lakh Between 2 lakh and 4 lakh Between 4 lakh and 6 lakh Above6 lakh Interpretation: From the above table.20 Options No. of respondents 37.33 13 14.66 14.33 Percentage 30.33 37. of respondents Percentage 17.66%) said above 6 lakhs for Annual income. 28 respondents (37.33%) as said less than 2 lakh.33%) said between 2-4 lakhs. 3.66 100 Less than 2 lakh 13 Between 2 lakh and 4 lakh 28 Between 4 lakh and 6 lakh 23 Above6 lakh 11 Total 75 Source: Primary Data Graph No.20 No.

66 26 Aggressive Conservative Moderate or Balanced Interpretation: From the above table. 3. it is clear that out of 75 respondents. 20 respondents (26. 29 respondents (38. 3.66%) said conservatives and 26 respondents (34. of respondents 38.66%) as aggressive.66 Percentage 34.66 29 20 26.66%) as said moderate or balanced for types of investor.21 Options No. Funds opinion are performing well .66 26.21 No.66 34.66 100 Source: Primary Data Graph No. of respondents Percentage Aggressive 29 Conservative 20 Moderate or Balanced 26 Total 75 38.Type of investor Table No.

22 Options Templeton SBI Mutual Fund No. . of 14 respondents Percentage 18. 3.33%) Birla sun life mutual fund and 21 respondents (28%) HDFC mutual fund for funds opinion is performing well.66 27 36 BIRLA SUN LIFE Mutual Fund 13 17.13 respondents (17.33 HDFC Mutual Fund Total 21 28 75 100 Source: Primary Data Graph No. 27 respondents (36%) said SBI mutual funds.66%) as said Templeton.22 No.33 13 Templeton SBI Mutual Fund BIRLA SUN LIFE Mutual Fund HDFC Mutual Fund Interpretation: From the above table. 3. it is clear that out of 75 respondents.Table No. of respondents 36 27 18. 14 respondents (18.66 14 Percentage 28 21 17.

23 No. 15 respondents (20%) post office and 3 respondents (4%) others for financial instruments are parts of investment.66 16 17.66%) said equities. 3. Silver Real Estate Post Office Others Interpretation: From the above table.23 Options No.Preferred to Financial Instrument in Investment Table No. Silver 12 Real Estate 13 Post Office 15 Others 3 Total 75 Source: Primary Data Graph No. it is clear that out of 75 respondents. 12 respondents(16%) said gold and silver. 3.33 20 4 100 Government securities 15 Equity 17 Gold.33 15 20 Percentage 3 4 Government securities Equity Gold.33%) real estates. 15 respondents (20%) as said government securities. of respondents 22. 17 respondents (22.66 20 17 15 12 16 13 17. of respondents Percentage 20 22. 13 respondents (17. .

24 Options No.66 23 20 14 18.66%) as said Flexi plan. . it is clear that out of 75 respondents.66 26. 20 respondents (26.66%) said retirement plan. 23 respondents (30. 14 respondents(18.24 30.66%) said endowment plan. 3.Following planed insured Table No. of respondents Percentage Flexi plan 20 26. 18 respondents (24%) capital multiplier plan for purpose behind investment following planned insured.66 Retirement Plan 23 30.66 Capital Multiplier Plan 18 24 Total 75 100 Source: Primary Data Graph No. 3.66 18 24 Flexi plan Retirement Plan Endowment Plan Capital Multiplier Plan Interpretation: From the above table.66 Endowment Plan 14 18.

33 19 14.33%) said earn returns.Preferred to purpose behind investment Table No. of respondents Percentage Wealth creation 11 14. 19 respondents(25. 3.25 No. 23 respondents (30. 11 respondents (14.66%) as said wealth creation.66%) said future expenses and 6 respondents (8%) said other for purpose behind investment.66 25.66 Tax saving 16 21.25 Options No. 16 respondents (21. of respondents Percentage 30.66 11 8 6 16 23 Wealth creation Tax saving Earn Returns Future expenses Others Interpretation: From the above table.66 Others 6 8 Total 75 100 Source: Primary Data Graph No. it is clear that out of 75 respondents. .33 21.33%) said tax saving.33 Earn Returns 19 25.33 Future expenses 23 30. 3.

of respondents Percentage 30. of respondents Percentage 10 13. 10 respondents (13.26 Options Shares Commodity market 10 13.33 4 5.33%) said debentures.33 Debentures Insurance Bank deposits 23 30.66 23 20 17.33 10 4 5. .26 No.Preference to various Investment avenues Table No.33 13 Shares Commodity market Debentures Insurance Bank deposits Post office savings Interpretation: From the above table.33%) as shares.66 Post office savings 15 20 Total No.33 13 17. 4 respondents (5. it is clear that out of 75 respondents.33 15 13.33%) said insurance.33 10 13. 13 respondents (17. 3.66%) as said bank deposits and 15 respondents (20%) said post office savings for preference to various investment avenues.33 75 100 Source: Primary Data Graph No. 23respondents (30. 3. 10 respondents (13.33%) said commodity market.

33 14.66%) said every season . of respondents Percentage Daily 9 Weekly 4 Monthly Every season 33 11 Occasionally 10 Yearly 8 Total 75 12 5.66 Daily Weekly Monthly Every season Occasionally Yearly Interpretation: From the above table.27 No.66 100 Source: Primary Data Graph No.66 11 10 13. of respondents 44 Percentage 33 12 9 4 5.33 10.33 44 14. 10 respondents (13. 9 respondents (12%) as said daily.66 13.33%) said weekly. 4 respondents (5. it is clear that out of 75 respondents.33%) said occasionally and 8 respondents(10.33 8 10.Preferred to frequency trading Table No. 3.66%) said yearly for frequency of trading. 11 respondents (14. 3. .27 Options No. 33 respondents(44%) said monthly.

it is clear that out of 75 respondents. 3.33 13 12 16 Price hedging Regulated marketing Low risk Quality products Interpretation: From the above table.28 Options No.66 Quality products 12 16 Total 75 100 Source: Primary Data Graph No.33%) said regulated marketing. . 13 respondents (17.33 Low risk 38 50.66%) said low risk and 12 respondents (16%) said quality products for think as the specially of trading in commodity market.28 No. 3.66 38 16 12 17. 12 respondents (16%) as said price hedging. of respondents Percentage Price hedging 12 16 Regulated marketing 13 17. 38 respondents(50. of respondents Percentage 50.Think as the specialty of trading in Commodity market Table No.

33%) said return they give. 3. .33%) as said risk involves. 13 respondents (17. of respondents Percentage 29.33 Other factors 16 21. 14 respondents(18.29 Options No. 3.33 Past performance 14 18.33%) said other factors for investment decision is depending.33 13.66%) said past performance. 22 respondents (29.33 10 13 14 18.66 16 21.33 22 17.33 Return they give 13 17.29 No.33%) said future growth and 16 respondents (21. 10 respondents (13.33 Total 75 100 Source: Primary Data Graph No. of respondents Percentage Risk Involved 10 13.33 Risk Involved Return they give Past performance Future growth Other factors Interpretation: From the above table. it is clear that out of 75 respondents.66 Future growth 22 29.Investment decision is depending Table No.

CHAPTER-4 .

FINDINGS AND SUGGESTIONS .

It is clear that out of 75 respondents. It is clear that out of 75 respondents 25 respondents (33.66%) said more than 5 years for investment time duration. It is clear that out of 75 respondents 23 respondents (30.66%) as said average return expect from your investment.4. 4. It is clear that out of 75 respondents 30 respondents (40%) said risk lower for kind of investment. 6.66%) as said public and government banks for if you invest your money in banks then what type of bank you prefer. It is clear that out of 75 respondents 20 respondents (26. 11. It is clear that out of 75 respondents 18 respondents (24%) said banks and 18 respondents (24%) said post office any other for best investment option. It is clear that out of 75 respondents 74 respondents (98. 10. 7.66%) said high risk high return for investment pattern prefer. It is clear that out of 75 respondents 28 respondents (37. It is clear that out of 75 respondents 23 respondents (30. It is clear that out of 75 respondents 35 respondents (46. It is clear that out of 75 respondents 42 respondents (56%) as said increase annual income expecting. 13. 14.66%) as said yes professional advice regarding your investment or you take your investment decision at your own choice 8. .33%) said once a year for frequency of investment. 39 respondents (52%) for age group of investor. It is clear from the interpretations 74 respondents (98. 2. 3. 5.66%) as said yes. 12.66%) said relatives take advice. It is clear that out of 75 respondents 17 respondents (22. 9.1 FINDINGS:- 1. It is clear that out of 75 respondents 17 respondents (22.66%) said 3-5% of income for what percent of income you invest.33%) as said with the reference of friends/relatives for taking investment decision.66%) as said professional 17 respondents (22.

15. It is clear that out of 75 respondents 35 respondents (46.66%) as said less than a year for experience in the market. 16. It is clear that out of 75 respondents 36 respondents (48%) investment for trading preference. 17. It is clear that out of 75 respondents 27 respondents (36%) current news for factor influencing the investment decision. 18. It is clear that out of 75 respondent‘s 43 respondents (57.33%) low. 19. It is clear that out of 75 respondents 37 respondents (49.33%) said moderate for how much loss are you willing to take. 20. It is clear that out of 75 respondents 28 respondents (37.33%) said between 2-4 lakhs for Annual income. 21. It is clear that out of 75 respondents 29 respondents (38.66%) as aggressive for types of investor. 22. It is clear that out of 75 respondents 27 respondents (36%) said SBI mutual funds for funds opinion is performing well. 23. It is clear that out of 75 respondents17 respondents (22.66%) said equities for financial instruments are parts of investment. 24. It is clear that out of 75 respondents 23 respondents (30.66%) said retirement plan for purpose behind investment following planned insured. 25. It is clear that out of 75 respondents 19 respondents (25.33%) said earn returns for purpose behind investment. 26. It is clear that out of 75 respondents 23respondents (30.66%) as said bank deposits for preference to various investment avenues. 27. It is clear that out of 75 respondents 33 respondents (44%) said monthly for frequency of trading. 28. It is clear that out of 75 respondents 38 respondents (50.66%) said low risk for think as the specially of trading in commodity market. 29. It is clear that out of 75 respondents 22 respondents (29.33%) said future growth for investment decision is depending. 4.2 SUGGESTION  To read and choose the best investment options

BIBLIOGRAPHY

BIBLIOGRAPHY

BIBLIOGRAPHY

B.1 BOOKS i) Research Methodology ii) Marketing Research iii) Security analysis and portfolio management

C.R.Kothari M.V.Kulkarni V.A. Avadhani

B.2 JOURNALS i) Indian Journal Of Finance ii) Vikalpa IIM,Ahmedabad iii) Management Review, IIM, Bengaluru

B.3 WEB SITES 1. http:// www.Equitymaster.com 2. http://www.Moneycontrol.com 3. http://www.webindia123.com/finance/post/mis.htm 4. http://nseindia.com/

ANNEXURES .

1 INTERVIEWER SCHEDULE INVESTOR PREFERENCE TO INVESTMENT Name:-………………………………………………. State:-……………………… Contact No:-……………………. .(a) male (b) female Occupation:-……………………. Address:-………………………. Age: -……………. City:-………………….....ANNEXURE-A. Gender: .

If yes then which is the best investment option according to you? (a) Stock/Shares option (b) Banks (c) Commodities (d) Real estate (e) Post office (f) Any other 4.1. Age Group of investors? (a) 15-25 (b) 25-35 (c) 35-45 (d) 45-60 (e) Above 60 3. Do you invest your money? (a)Yes (b) No 2. What kind of investor you are? (a) Risk adverse (b) Risk lover (c) Higher risk (d) None of these .

What is your investment time duration? (a) 0-2 years (b) 2-3 years (c) 3-4 years (d) 4-5 years (e) More than 5 years 7.5. Do you take any professional advice regarding your investment or you take your investment decision at your own choice? (a) Yes (b) No 8. Which investment Pattern you prefer? (a) Low risk low return (b) High risk high return (c) Higher risk (d) High risk low return (e) Low risk high return (f) None of these 6. If yes then from whom you take advice? (a) Professional adviser (b) Friends (c) Relatives (d) Magazine (e) Others .

Return (d) None of these 11. Return (b) Above Avg. Return (c) Below Avg. What percent of income you invest? (a) 0.3% of income (b) 3% -5% of income (c) 5%-10% of income (d) More than 10% of income . What kind of investment return you expect from your investment? (a) Avg.9. What is the frequency of investment? (a) Once a month (b) Once a quarter (c) Once a year (d) Whenever there is enough money (e) None of these 12. If you invest your money in banks then what type of bank you prefer? (a) Public / Government Banks (b) Private Banks (c) Commercial Banks (d) Cooperative Banks (e) Others 10.

do you expect your annual income to change? (a) Increase (b) Decrease (c) Remain the same 15.13. What is your Trading Preference? (a) Speculation (b) Investment (c) Both . What is your Experience in the market? (a) Less than a year (b) 1 years (c) 2-3 years (d) More than 4 years 16. Over the next 3-5 years. How you take investment decision? (a) With the reference of Friends/Relatives (b) With the reference of Chartered Account (c) By reading prospectus and other important documents (d) With the advice of Agents/portfolio Manager 14.

How much Risk are you willing to take? (a) High (b) Low (c) Moderate 19.17. What is your annual income? (a) Less than 2 lakh (b) Between 2 lakh and 4 lakh (c) Between 4 lakh and 6 lakh (d) Above 6 lakh . Factors influencing the investment decisions? (a) Advice from Broker (b) Current news (c) Reviews in Financial Magazines (d) Advice from Friends (e) Self Evaluation (f) Others 18. How much loss are you willing to take? (a) High (b) Moderate (c) Low 20.

21. Which financial instruments are parts of your Investment? (a) Government securities (b) Equity (c) Gold. Which of the following planed you is insured? (a) Flexi plan (b) Retirement Plan (c) Endowment Plan (d) Capital Multiplier Plan . Silver (d) Real Estate (e) Post Office (f) Others 24. What type of investor you are? (a) Aggressive (b) Conservative (c) Moderate or Balanced 22. Which funds in your opinion are performing well? (a) Templeton (b) SBI Mutual Fund (c) BIRLA SUN LIFE Mutual Fund (d) HDFC Mutual Fund 23.

Your preference to various Investment avenues? (a) Shares (b) Commodity market (c) Debentures (d) Insurance (e) Bank deposits (f) Post office savings 27. What is the frequency of your trading? (a) Daily (b) Weekly (c) Monthly (d) Every season (e) occasionally (f) yearly 28. What is the purpose behind investment? (a) Wealth creation (b) Tax saving (c) Earn Returns (d) Future expenses (e) Others 26.25. What do you think as the specialty of trading in Commodity market? (a) Price hedging (b) Regulated marketing (c) Low risk (d) Quality products .

Your Investment decision is depending on (a) Risk Involved (b) Return they give (c) Past performance (d) Future growth (e) Other factors .29.

What kind of investor you are? Options No.3. Do you invest your money? Options No.ANNEXURE-A.4.1.2 FREQUENCY DISTRIBUTION Q. If yes then which is the best investment option according to you? Options No. of Respondents Stock/Shares option Banks Commodities Real estate Post office Any other Total 75 Q. of Respondents Yes No Total 75 Q. of Respondents 15-25 25-35 35-45 45-60 Above 60 0 Total 75 Q.2. Age Group of investors? Options No. of Respondents Risk adverse Risk lover Higher risk None of these Total 75 .

7.Which investment Pattern you prefer? Options Low risk low return High risk high return Higher risk High risk low return Low risk high return None of these Total No. of Respondents 0-2 years 2-3 years 3-4 years 4-5 years More than 5 years Total 75 Q.Q. Do you take any professional advice regarding your investment or you take your investment decision at your own choice? Options No.8.What is your investment time duration? Options No. of Respondents Yes No Total 75 Q.5. of Respondents 75 Q.6. of Respondents Professional adviser Friends Relatives Magazine Others Total 75 . If yes then from whom you take advice? Options No.

what kinds of investment return you expect from your investment? Options No.10. of Respondents Avg. what is the frequency of investment? Options No. of Respondents Once a month Once a quarter Once a year Whenever there is enough money None of these Total 75 Q. of Respondents 75 . Return Below Avg.3% of income 3% -5% of income 5%-10% of income More than 10% of income Total No.Q. of Respondents Public / Government Banks Private Banks Commercial Banks Cooperative Banks Others Total 75 Q.12. If you invest your money in banks then what type of bank you prefer? Options No.9.11.What percent of income you invest? Options 0. Return None of these Total 75 Q. Return Above Avg.

13. How you take investment decision? Options With the reference of Friends/Relatives With the reference of Chartered Account By reading prospectus and other important documents With the advice of Agents/portfolio Manager Total No. of Respondents Speculation Investment Both Total 75 .What is your Experience in the market? Options No.16.What is your Trading Preference? Options No.Q. do you expect your annual income to change? Options No. Over the next 3-5 years.15.14. of Respondents Less than a year 1 years 2-3 years More than 4 years Total 75 Q. of Respondents 75 Q. of Respondents Increase Decrease Remain the same Total 75 Q.

How much Risk is you willing to take? 75 Options No. of Respondents Q. of Respondents High Low Moderate Total 75 Q.17.What is your annual income? Options Less than 2 lakh Between 2 lakh and 4 lakh Between 4 lakh and 6 lakh Above6 lakh Total No. of Respondents 75 Q. of Respondents 75 .19.18. Factors influencing the investment decisions? Options Advice Current news from Broker Reviews in Financial Magazines Advice from Friends Self Evaluation Others Total No.20.Q. How much loss is you willing to take? Options High Moderate Low Total No.

Q.23.Which of the following planed you is insured? Options Flexi plan Retirement Plan Endowment Plan Capital Multiplier Plan Total No. of Respondents 75 Q.24.Which funds in your opinion are performing well? Options Templeton SBI Mutual Fund BIRLA SUN LIFE Mutual Fund HDFC Mutual Fund Total No.21. Silver Real Estate Post Office Others Total 75 Q. of Respondents Government Equity securities Gold.Which financial instruments are parts of your Investment? Options No. of Respondents 75 . of Respondents Aggressive Conservative Moderate or Balanced Total 75 Q.22.What type of investor you are? Options No.

What is the purpose behind investment? Options Wealth creation Tax saving Earn Returns Future expenses Others Total No.What is the frequency of your trading? Options No.26. of Respondents 75 Q.27.Your preference to various Investment avenues Options Shares Commodity market Debentures Insurance Bank deposits Post office savings Total No. of Respondents 75 .Q. of Respondents 75 Q.28.What do you think as the specialty of trading in Commodity market Options Price hedging Regulated marketing Low risk Quality products Total No. of Respondents Daily Weekly Monthly Every season occasionally yearly Total 75 Q.25.

of Respondents Risk Involved Return they give Past performance Future growth Other factors Total 75 .29. Your Investment decision is depending on Options No.Q.

The survey done in the person who invest the money in various type of investment what they want from the investment and how much time they can invest their money for the specific fund or their respective investment. Shah Abhishek Rawat Prallad Dave Rounak Satish Khabe Nilesh Subhash Chawar Kunal Dangi Pravi K.Classic Garden Katraj. 14.3 DATA BASEDAND SURVEY Project is being selected for the purpose to know the concept of the Investment Who invest amount for the person to give more and less risk and tax benefit. 16. 12.Pune Flat No.Pune Dhankawadi.Pune A-3.Pune . Pune Ruby Clinic (Mumbai – Pune Highway) .They don‘t even rely on the questionnaire and also refuse to give there contact numbers.Pune Kothrud. NAME Aakash Saxena Dr.Pune Balaji Nagar. 11.Pune Dhankawadi.On behalf of them I tick mark the option what they considered to be select as appropriate option according to them . 7. Green Park. The survey done for the investor towards investment who involve in this business how they manage their investment and what is their strategy for the next project.Pune Katraj. 5. they asked me dictate the questions and options of those questions so they can answer the appropriate option . 6.ANNEXURE-A.Pune Shop no. 9. Their few difficulties – So many people to whom I approached to fill the questionnaire refused to read that. 1. 9825181711 9822234540 7276910807 9823683601 9730702153 9049989829 020-60707999 9373836662 9860300306 9158335854 8796532132 020-30570545 9711914810 9623161807 9623728929 7875039974 ADDRESS A-5. 4. 8.Pune Nanapeth.2.Classic Garden Katraj.Pune Wonder city Katraj. 15.Pune Chaitanya Nagar. 10. S.Pune Balaji Nagar. 2. Total 75 sample of questionnaire were formed for survey. 6. 3.Pune Balaji Nagar. Sharma Bavesh Pankaj Pandey Vasant Kumar Vikash Shinde Gourav Chauhan Nikhil More Mayur Jewrker Pradeep Das CONTACT NO. 13.Classic Garden Katraj.Pune j Balaji Nagar. Rakesh S.NO.

28.Pune Jawahar Bekari Dhankawadi.B.Pune Rishikesh Socity .Pune Katraj. 30.Pune Samsung Care Katraj. Market.Pune A-13. 41. 37. 48. link Flat no.Pune Katraj. Pune K. 50. Pune Nancy Garden Katraj.Pune Kadam Plaza Opp. 54. Aditya Sharma . 45. 49. 51.Pune Dhankawadi. 56.Pune Katraj.Pune Pashan.Pune Katraj. 34. 31.Pune Deccan.Pune Wakdewadi Shivaji Nagar.Pune Dhankawadi.Pune Katraj.Classic Garden Katraj. Pratik Patil 58. 39.Pune Ambegaon. 18. 40. 52. 20. Vinay Kumar Godaji Shushank D. 22. 29.Pune BVP Back Market.Pune Tanaji Nagar. 47. 25.Pune Raj complex (Pune.Pune Pawan Nagar Vivawadi Upper. 21. 24.Pune Swargate.17. 35.Pune Wonder city Katraj. Akshay Kamble 59. BVP. 46.Pune Classic Garden Katraj.Pune Aasiyana Hostel Balaji Nagar. Pune Kothrud. 27. 32. 19. 33.Pune Market Yard.Pune Bharti Vidya Peet Univercity.Pune Karve Nagar.Pune A-7.Pune Padmawati.Pune Balaji Nagar.Pune Katraj.Pune B. 26. 23.Pune Datta Nagar.Satara Road) .104 Lektown. 38.Classic Garden Katraj. 53. 42.Pune Dardewadi Kolhapur.Pune Shingad rod Manikbag. Abhisekh Kushwaha Sujit Golpare Akshay Kamble Avinash Kushwaha Ramakant Milan Bhoite Umesh Sakharam Ishant Mukhi Rohan Shankla Rajesh Khabe Sabir Shaikh Antariksh Jawhar Lal Prajapati Ankur Aggarwal Kashish Gupta Anshuman Rakesh Sagar M.Pune 57.Pune Ram bhag .Pune Gurudtta Socity Balaji Nagar. 44. Pansar Pradeep Dilip Saste 9823218311 9623720920 7524531567 9823718311 8983038370 9860352881 8975366736 9960754637 7620204829 8806965942 9764265404 9988773850 9323999907 9960160099 8267491181 9432307448 9823705442 9930365193 9579440769 9923202686 9960597654 9423572244 7337371038 9762250067 9960840964 9023192973 9764790924 9975614863 9270448174 9468371258 9479419302 8796304810 9407448323 9730579002 8120886514 9049100855 9579700790 8796955278 9595148085 9689608086 9766952586 8626076176 9699443933 Balaji Nagar.K. Pune Bharti Campus. Madbhagat Soumitra Sarkar Ravi Nigam Anupam Abhishek Rathi Singh Deepak Goyal Abhijit Sambhu Dayal Meena Khandhu Sanjeev Suresh Sahadev Kapare Vikash Chaurasiya Radhe Shaym Bhosle Sagar Taware Ankush Raj Anjuj Sudir Kumar Pandey Gawdde Nilesh Balaso K.Pune Shivaji Nagar. 36. 55. 43.

Pune Market Yard. Pune B-12 Nancy Garden. 74.Pune Warje Building Chaitanya Nagar. Chaitanya Nagar. 65. Dhankawadi Pune Shiroor . 73. 67. Saxena Lalit Mittal Ashish Sharma Sameer Saikh Rajesh Mendla Santosh Jai Singh Gurdass Mahender Kamble Amol Bhosle Navanath L. Ranje Tal. Dangi Nitin Bendale Sanjay Mahindra 8007279876 9028918753 9896131417 9028556945 8898477328 9887430084 9823705421 9049879670 9823986606 9689621822 9011796820 9950770413 9527624757 9665648139 9370221089 9890284776 Motibagh.Pune Katraj. Pune 104. Pune Deccan.Pune .M.. 64.Pune Balaji Nagar Pune-43 Chaitanya Nagar . 71.Pune Classic Garden Opp. 63. Lake Towan.Pune Green Park Satara Road.Pune Katraj. 69.-Bhor Dist. 70. BVP.Pune Khed Shirapur.Pune 512 B. 75. 72. 62. 66. Manminder Pal Singh Ankit Mahipal Dev K.Pune Atp. 61.60. 68.

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