EXECUTIVE SUMMARY

An Investment is a sacrifice of current money or other resources for future benefits.

Numerous avenues of investment are available today. The two key aspects of any investment are
time and risk. Very broadly, the investment process consists of two tasks. The first task is
security analysis which focuses on assessing the risk and return characteristics of the available
investment alternatives. The second task is portfolio selection which involves choosing the best
possible portfolio from the set of feasible portfolios.

Construction of portfolio is only part of the battle. Once it is built, the portfolio needs to be
maintained. The market values, needs of the beneficiary, and relative merits of the portfolio
components can change over time. The portfolio manager must react to these changes.

Many people consider investing to be a daunting activity. They are bewildered by the profusion
and proliferation of investment alternatives, rattled by the fluctuations in financial prices,
overwhelmed by the presence of mighty institutional investors, confused by exotic instruments
and complicated investment strategies, confused by the intricacies of the tax system, and
exasperated by the financial scams that periodically rock market.

Notwithstanding these concerns, investing can be fairly manageable, rewarding, and enjoyable
experience, if we adhere to certain principles and guidelines. By this we can expect and hope to
maximize our returns by diversifying our investments into suitable portfolios. For this, each and
every investor has to be well educated about economy, investment options, market conditions
and its consequences.

Portfolio management usually requires periodic revision of the portfolio in accordance with a
predetermined strategy.

The type of sampling technique used is Simple Random Sampling wherein a questionnaire was
prepared and distributed to the retail investors. The investors profile is based on the results of a

questionnaire that the Investors completed. The Sample consists of 50 retail investors from
various backgrounds. The target customers were only the retail investors who invest in various
avenues so as to know about their knowledge and concern regarding the economy, principal
invested, investment options, market conditions etc.

According to the opinion of these investors interpretation has been done and there has been
findings and conclusion along with some recommendations.
Introduction/Theoretical Background deals with the introduction about the topic. Literature review deals
with the existing research done on the topic. Research Methodology deals with the sources of data,
sample size and instrument used. Data collection and analysis deals the method of data collection and the
analysis of the responses collected and its interpretation of the results. Conclusions, Suggestions deals
with the finding of the resu