Abstract

The main aim of the study is to find out the factors influencing the household investment decision in the
city of Bhubaneswar. A survey will be conducted in 100 households staying in different parts of the city.
The head of the family/earning member of the family will be contacted to collect the data. The survey
instrument will be constructed on the various factor identified from the literature.

Introduction
This study is based on the investment opportunities for the household, those are belongs to rural areas as
well as middle class people it the urban India. by this study we can understand the peoples perception
about the capital market why they dont invest in the capital market rather than in Saving account in
Bank.
Peoples living style with their limited income and the inflation on commodities. How people afford their
living g along with high growth development even though they have limited income with them, future of
their children affected by their investment decision or saving decision.
Opportunities of the house hold of India available with them and the cost for their alternative decision.
BACKGROUND OF THE STUDY
In the 1300s, the Venetians were the leaders in the field and the first to start trading the securities from
other governments. Belgium boasted a stock exchange as far back as 1531, in Antwerp. Brokers and
moneylenders would meet there to deal in business, government and even individual debt issues. It is odd
to think of a stock exchange that dealt exclusively in promissory notes and bonds, but in the 1500s there
were no real stocks. There were many flavors of business-financier partnerships that produced income
like stocks do, but there was no official share that changed hands .
In the 1600s, the Dutch, British, and French governments all gave charters to companies with East India
in their names.
On the cusp of imperialism's high point, it seems like everyone had a stake in the profits from the East
Indies and Asia except the people living there.
The first stock exchange in London was officially formed in 1773, a scant 19 years before the New York
Stock Exchange. Whereas the London Stock Exchange (LSE) was handcuffed by the law restricting
shares, the New York Stock Exchange has dealt in the trading of stocks, for better or worse, since its
inception.
Bombay Stock Exchange (BSE) is an Indian stock exchange located in Mumbai, Maharashtra, India.
Established in 1875 and is considered to be one of Asias fastest stock exchanges, with a speed of 200
microseconds and one of Indias leading exchange groups and the oldest stock exchange in the South Asia
region.
On 31 August 1957, the BSE became the first stock exchange to be recognized by the Indian
Government under the Securities Contracts Regulation Act. In 1980, the exchange moved to the Phiroze
Jeejeebhoy Towers at Dalal Street, Fort area. In 1986, it developed the BSE SENSEX index, giving the
BSE a means to measure overall performance of the exchange.

This study is conducted to know the reasons behind no participation of housholds in capital
market.we conducted a survey to know the reasons in our project. The global economy is on a
recovery path after the shocks of the severe financial and economic crises of 2008 and 2009.

The Indian financial sector was able to withstand the global shocks during this period and
emerge stronger.The foreign capital inflows have resumed and the capital markets have regained
the dynamism. The experience has shown that the need for greater understanding and careful
monitoring of the financial sector is essential for designing policies for sustaining high rate of
economic growth with stability

The Purpose of the Study or a Statement of the Problem :The research has the following objectives:
1. To know the Preference of the investment instruments
2. To know the factors influencing individual investment decision.
3. To know whether there has been any increase in savings relate to households' expectations, their selfreported & reasons for the same.

Research Questions
2) what are the reasons behind no participations of households involvement in capital markets?
3)Does gender,age,income ,education level matters while investing in capital markets?
4)Does information source effect the decision making process in investment in capital market?
5) Why they prefer to deposit in saving bank account rather than investing in capital market?

Definitions of Terms or Operational Definitions:Investment decision:

Age: 25-45
Gender: male/female
Risk perception: The capital market risk usually defines the risk involved in the investments.
Risk may be like 1) Market risk, 2)Business risk, 3)Industry risk.
Return: Basic return like interest, dividend
Liabilities: here liabilities refers to the remaining amount to be paid to the company.
Consumption pattern: consumption pattern also affect the decision on the investment in
the capital market.
Income: Income level of the household or individual also play great role in the
investment decision, which to be asked to the respondend.

Review of the literature:We will study the investment decision of household or individual, population belonging to Bhubaneswar.
Every ward Bhubaneswar will be our cluster sampling and from each cluster we will take random
sampling of the household or individual.

Significance of the study

Study of the topic suggest or get to know and give advice to the individual and household to invest their
saving in the capital market so that their saving can yield good return from the capital market and earn
income from their small saving.
In rural India as well as urban India middle class, people earn money lot but they cant save and invest
their income so that they can get return out of their small saving. Question is that if they income lot,
where their income is going if they dont invest their income in the market?. People those earning on the
daily basis also have great opportunities to invest in the capital market and yield ripe fruit.
Even available fruitful opportunities to them to invest their money in the market but they cant still take
the opportunities of it because of either of lack of assistance of expert or poor information about the
market or lack of knowledge about the market and or insecurity feel about their investment in the market.
Most of the household as well as individual dont prefer to invest in the market lose their income, because
they feel that their money will not generate anything also they lose their small saving, so that they prefer
to consume rather than save their money.
Consumption
pattern

Age

Theoretical framework:-

Income
Investment
Decision

Investment decision:

Age:
Gender
Risk perception
Return
Liabilities
Consumption pattern
Income

Gender

Occupation
Return
Liabilities

Occupation

Materials and methods:Sample: cluster sampling method will be used to select 100 households of Bhubaneswar.
Data collection: face to face interview as a tool to conduct the research to the household and
individual.
Instruments: on the basis of the factors identified above, a survey instrument will be prepared
to collect data.

Data Analysis:Descriptive statistics and multivariate analysis will be conducted to analyze data.

Limitations: The respondents may not want share their income pattern easily.
Respondent may not feel comfortable to provide personal as well as saving pattern.

References
we followed the following of the reference
www.google.com
www.wikipedia.com