EXECUTIVE SUMMARY

The project ANANLYSIS OF INVESTMENT OPTIONS gives the

brief idea regarding the various investment options that are prevailing in the
financial markets in India. With lots of investment options like banks, Fixed
Deposits, Government bonds, stock market, real estate, gold and mutual funds
the common investor ends up more confused than ever. Each and every
investment option has its own merits and demerits. This project I have discussed
about few investment options available.
Any investor before investing should take into consideration tae safety,
liquidity, returns, entry/exit barriers and tax efficiency parameters. We need to
evaluate each investment option on the above-mentioned basis and then invest
money. Today investor faces too much confusion in analyzing the various
investment options available and then selecting the best suitable one. In the
present project, investment options are compared on the basis of returns as well
as on the parameters like safety, liquidity, term holding etc. thus assisting the
investor as a guide for investment purpose.
This project gave me a great insight about the IPO and its Process. The
purpose of this Project was to understand the IPOs; buyback of shares; IPO
Grading and Reforms in IPO Process. This project was a learning experience for
me of IPO and its valuation. I began my study by going through the SEBI
guidelines regarding eligibility norms, pricing structure, requirements of the
promoters and their obligations, post issue obligations, book building guidelines
etc. Proper study of few IPOs has been done by going through their past
financials, business structure, investments, expansion strategies, growth
potential, valuations etc. The Project report starts with defining the various
public issues with the need for the company to take out an IPO. It goes on
further to explain the advantages of an IPO. It analyses in detail the Indian IPO
Scenario. It explains the evolution of the IPO in India and explains how the
scene has changed dramatically after liberalization esp. after the introduction of
book building process
 INTRODUCTION TO INVESTMENTS

There are many different definitions of what investment and investing

actually means. One of the simplest ways of describing it is using your money
to try and make more money. This can happen in many different ways.

All investors are different. The common factor is that you would like to invest
money to aim to make it grow or to receive a regular income from it. We would
like to show you that choosing the most suitable investment for you does not
need to be difficult. All you need is the right help along the way.

The act committing money or capital to an endeavor with the expectation of

obtaining an additional income or profit is known as investment. Investing
means putting your money to work for you.

Investment has different meanings in finance and economics. Finance

investment is putting money into something with the expectation of gain, that
upon thorough analysis, has a high degree of security for the principal amount,
as well as security of return, within an expected period of time. In contrast
putting money into something with an expectation of gain without thorough
analysis, without security of principal, and without security of return is
speculation or gambling. As such, those shareholders who fail to thoroughly
analyze their stock purchases, such as owners of mutual funds, could well be
called speculators. Indeed, given the efficient market hypothesis, which implies
that a thorough analysis of stock data is irrational, all rational shareholders are,
by definition, not investors, but speculators.

Investment is related to saving or deferring consumption. Investment is

involved in many areas of the economy, such as business management and
finance whether for households, firms, or governments.
To avoid speculation an investment must be either directly backed by the pledge
of sufficient collateral or insured by sufficient assets pledged by a third party. A
thoroughly analyzed loan of money backed by collateral with greater immediate
value than the loan amount may be considered an investment. A financial
instrument that is insured by the pledge of assets from a third party, such as a
deposit in a financial institution insured by a government agency may be
considered an investment. Examples of these agencies include, in the United
States, the Securities Investor Protection Corporation, Federal Deposit
Insurance Corporation, or National Credit Union Administration, or in Canada,
the Canada Deposit Insurance Corporation.

Promoters of and news sources that report on speculative financial transactions

such as stocks, mutual funds, oil and gas leases, commodities, and futures often
inaccurately or misleadingly describe speculative schemes as investment.

NEED AND IMPORTANCE OF STUDY

Essentially, Investment Planning involves identifying your financial goals

throughout your life, and prioritizing them. For example, if you want to invest
for funding your vacation next year, don't choose an investment vehicle that has
a three-year lock-in. Similarly, if you want to invest for your daughter's
marriage after 10 years, don't invest in 1yr bonds for the next 10 years. Instead,
choose an option that matches your investment horizon.

Investment Planning is important because it helps you to derive the maximum

benefit from your investments. Your success as an investor depends upon your
ability to choose the right investment options. This, in turn, depends on your
requirements, needs and goals. The choice of the best investment options for
you will depend on your personal circumstances as well as general market
conditions. For example, a good investment for a long-term retirement plan may
not be a good investment for higher education expenses.
 OBJECTIVES OF THE STUDY

To understand various dimensions and problems in IPO process.

To understand post IPO performance.
To analyze financial position of Companies as depicted in its Annual
report as it serve.
An important basis for investors to judge company performance and
future prospects.

HYPOTHESIS

H0: Investors behaviour is favorable in investing in IPO.

H1: Investors behaviour is unfavorable in investing in IPO.