“A STUDY ON INVESTMENT BEHAVIOUR OF

BUSINESSMAN WITH SPECIAL REFERENCE TO

IRINJALAKUDA AREA”

Project Report submitted to

UNIVERSITY OF CALICUT

In partial fulfillment of the requirement for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

Submitted by

ARCHANA S
(CCASBBAR20)

Under the supervision of

Ms. SHINY A O

DEPARTMENT OF MANAGEMENT STUDIES

CHRIST COLLEGE(AUTONOMOUS), IRINJALAKUDA

MARCH 2021
 CHRIST COLLEGE(AUTONOMOUS), IRINJALAKUDA

CALICUT UNIVERSITY

DEPARTMENT OF MANAGEMENT STUDIES

CERTIFICATE

This is to certify that the project report entitled “A STUDY ON

INVESTMENTBEHAVIOUR OF BUSINESSMAN WITH SPECIAL
REFERENCE TO IRINJALAKUDA” is a bonafide record of project done
byARCHANA S, Reg. No. CCASBBAR20, under my guidance and supervision in
partial fulfillment of the requirement for the award of the degree of BACHELOROF
BUSINESS ADMINISTRATION and it has not previously formed the basis for any
Degree, Diploma and Associate ship or Fellowship.

Prof. [Link] JOHN Ms. SHINY A O

Co-Ordinator Project Guide
 DECLARATION

I, ARCHANA S, hereby declare that the project work entitled “A STUDY ON

INVESTMENT BEHAVIOUR OF BUSINESSMAN WITH SPECIAL
REFERENCE TO IRINJALAKUDA” is a record of independent and bonafide
project work carried out by me under the supervision & guidance of Ms. SHINY A O,
Assistant Professor, Department of Commerce, Christ College, Irinjalakuda.

The information and data given in the report is authentic to the best of my knowledge.
The report has not been previously submitted for the award of any Degree, Diploma,
Associateship or other similar title of any other university or institute.

PLACE: IRINJALAKUDA ARCHANA S

DATE: CCASBBAR20
 ACKNOWLEDGEMENT

I would like to take the opportunity to express my sincere gratitude to all people who
have helped me with sound advice and able guidance.

Above all, I express my eternal gratitude to the Lord Almighty under whose divine
guidance; I have been able to complete this work successfully.

I would like to express my sincere obligation to [Link]. Jolly Andrews, Principal-in-

Charge, Christ College Irinjalakuda for providing various facilities.

I am thankful to Prof. [Link] John, Co-Ordinator of Management Studies, for

providing proper help and encouragement in the preparation of this report.

I am thankful to Mr. Aslam P S, Class teacher for her cordial support, valuable
information and guidance, which helped me in completing this task through various
stages.

I express my sincere gratitude to Ms. Shiny A O, Assistant Professor, whose guidance

and support throughout the training period helped me to complete this work
successfully.

I would like to express my gratitude to all the faculties of the Department for their
interest and cooperation in this regard.

I extend my hearty gratitude to the librarian and other library staffs of my college for
their wholehearted cooperation.

I express my sincere thanks to my friends and family for their support in completing
this report successfully.
 TABLES OF CONTENTS

CHAPTER NO. CONTENTS PAGE NO:

LIST OF TABLES

LIST OF FIGURES

CHAPTER 1 INTRODUCTION 1 –5

CHAPTER 2 REVIEW OF LITERATURE 6–9

INDUSTRY AND COMPANY

CHAPTER 3 10 – 15
PROFILE

DATA ANALYSIS AND

CHAPTER 4 16 –40
INTERPRETATION

FINDINGS, SUGGESTIONS &

CHAPTER 5 41–45
CONCLUSION

BIBLIOGRAPHY 45– 46

APPENDIX
 LIST OF TABLES

TABLE
TITLE PAGE NO:
NO:

4.1 TABLE SHOWING AGE DISTRIBUTION. 17

4.2 TABLE SHOWING GENDER CLASSIFICATION. 18

TABLE SHOWING MARITAL STATUS OF

4.3 19
RESPONDENTS.

TABLE SHOWING QUALIFICATION OF THE

4.4 20
RESPONDENTS.

TABLE SHOWING ANNUAL INCOME OF

4.5 21
RESPONDENTS.

TABLE SHOWING PEOPLE HAVING FINANCIAL

4.6 22
ADVISOR.

TABLE SHOWING INVESTING DECISION OF

4.7 23
RESPONDENTS.

TABLE SHOWING PURPOSE BEHIND

4.8 24
INVESTMENT.

TABLE SHOWING SAVINGS OBJECTIVE OF THE

4.9 25
RESPONDENTS.

TABLE SHOWING FORMAL BUDGET FOR FAMILY

4.10 26
EXPENDITURE.

4.11 TABLE SHOWING RATE OF INVESTMENT. 27

 TABLE SHOWING INVESTMENT OBJECTIVES OF
4.12 28
RESPONDENTS.

4.13 TABLE SHOWING SPEND MONTHLY INCOME. 29

TABLE SHOWING INVESTING SECTOR

4.14 30
PREFERRED BY RESPONDENTS.

TABLE SHOWING TIME PERIOD PREFER TO

4.15 31
INVEST.

4.16 TABLE SHOWING MONITOR INVESTMENT. 32

4.17 TABLE SHOWING MANAGING INVESTMENT. 33

TABLE SHOWING RATE OF INVESTING BY

4.18 34
RESPONDENTS.

TABLE SHOWING INVESTMENT RISK OF LOSING

4.19 35
PRINCIPAL AMOUNT.

TABLE SHOWING INVESTMENT IN SHARE

4.20 36
MARKET.

TABLE SHOWING FACTORS CONSIDER WHILE

4.21 37
INVESTING.

TABLE SHOWING SAVINGS FOR CHILDRENS

4.22 38
EDUCATION & MARRIAGE OF RESPONDENTS.

TABLE SHOWING SOURCE OF INVESTMENT

4.23 39
ADVICE OF RESPONDENTS.

TABLE SHOWING INVESTMENT EXPERIENCE OF

4.24 40
RESPONDENTS.
 LIST OF CHARTS

TABLE
TITLE PAGE NO:
NO:

4.1 FIGURE SHOWING AGE DISTRIBUTION. 17

4.2 FIGURE SHOWING GENDER CLASSIFICATION. 18

FIGURE SHOWING MARITAL STATUS OF

4.3 19
RESPONDENTS.

FIGURE SHOWING QUALIFICATION OF THE

4.4 20
RESPONDENTS.

FIGURE SHOWING ANNUAL INCOME OF

4.5 21
RESPONDENTS.

FIGURE SHOWING PEOPLE HAVING FINANCIAL

4.6 22
ADVISOR.

FIGURE SHOWING INVESTING DECISION OF

4.7 23
RESPONDENTS.

FIGURE SHOWING PURPOSE BEHIND

4.8 24
INVESTMENT.

FIGURE SHOWING SAVINGS OBJECTIVE OF THE

4.9 25
RESPONDENTS.

FIGURE SHOWING FORMAL BUDGET FOR

4.10 26
FAMILY EXPENDITURE.
4.11 FIGURE SHOWING RATE OF INVESTMENT. 27

FIGURE SHOWING INVESTMENT OBJECTIVES OF

4.12 28
RESPONDENTS.

4.13 FIGURE SHOWING SPEND MONTHLY INCOME. 29

FIGURE SHOWING INVESTING SECTOR

4.14 30
PREFERRED BY RESPONDENTS.

FIGURE SHOWING TIME PERIOD PREFER TO

4.15 31
INVEST.

4.16 FIGURE SHOWING MONITOR INVESTMENT. 32

4.17 TABLE SHOWING MANAGING INVESTMENT. 33

FIGURE SHOWING RATE OF INVESTING BY

4.18 34
RESPONDENTS.

FIGURE SHOWING INVESTMENT RISK OF LOSING

4.19 35
PRINCIPAL AMOUNT.

FIGURE SHOWING INVESTMENT IN SHARE

4.20 36
MARKET.

FIGURE SHOWING FACTORS CONSIDER WHILE

4.21 37
INVESTING.

FIGURE SHOWING SAVINGS FOR CHILDRENS

4.22 38
EDUCATION & MARRIAGE OF RESPONDENTS.

FIGURE SHOWING SOURCE OF INVESTMENT

4.23 39
ADVICE OF RESPONDENTS.

FIGURE SHOWING INVESTMENT EXPERIENCE OF

4.24 40
RESPONDENTS.
 CHAPTER 1
INTRODUCTION

1
1.1 INTRODUCTION

Investment is the commitment of money or capital to purchase financial

instruments or other assets in order to gain profitable returns in form of interest,
income, or appreciation of the value of the instrument. It is related to saving or
deferring consumption. It is involved in many areas of the economy, such as
business management and finance no matter for households, firms, or
governments. An investment involves the choice by an individual or an
organization such as a pension fund, after some analysis or thought, to place or
lend money in a vehicle, instrument or asset, such as property, commodity,
stock, bond, financial derivatives (e.g., futures or options), other foreign asset
denominated in foreign currency, that has certain level of risk and provides the
possibility of generating returns over a period of time.

Investment comes with the risk of the loss of the principal sum. The investment
that has not been thoroughly analysed can be highly risky with respect to the
investment owner because the possibility of losing money is not within the
owner's control. In the case of investment, rather than store the good produced
or its money equivalent, the investor chooses to use that good either to create a
durable consumer or producer good, or to lend the original saved good to
another in exchange for either interest or a share of the profits. In the first case,
the individual creates durable consumer goods, hoping the services from the
good will make his life better. In the second, the individual becomes an
entrepreneur using the resource to produce goods and services for others in the
hope of a profitable sale. The third case describes a lender, and the fourth
describes an investor in a share of the business. In each case, the consumer
obtains a durable asset or investment, and accounts for that asset by recording
an equivalent liability. As time passes, and both prices and interest rates
change, the value of the asset and liability also change.

The term "investment" is used differently in economics and in finance.

Economists refer to a real investment (such as a machine or a house), while

2
financial economists refer to a financial asset, such as money that is put into a
bank or the market, which may then be used to buy a real asset. The investment
decision (also known as capital budgeting) is one of the fundamental decisions
of business management: Managers determine the investment value of the
assets that a business enterprise has within its control or possession. These
assets may be physical (such as buildings or machinery), intangible (such as
patents, software, goodwill), or financial.

1.2 STATEMENT OF THE PROBLEM

Investment is very important activity for anyone as it secures the future from
the uncertainties. There is a lot of scope for investment because of the existence
of number of business. This study is conducted to analyse the investment
behaviour of business men of Irinjalakuda, Thrissur.

1.3 SCOPE OF THE STUDY

This analysis is based upon investors’ pattern of business men for investment
preference, awareness, during normal time. This analysis is focusing on the
information from business people about their knowledge, perception, and
behaviour on different financial products.

1.4 SIGNIFICANCE OF THE STUDY

Most of the studies are conducted on investment behaviour. As we know that

businessmen have more money and more saving in day-to-day business. Their
behaviour may be to invest funds in long term and in short term. Now a days so
many modern financial products are available for the investment which
provides high growth. However financial economist has now realized that the
long-held assumptions of traditional finance theory are wrong and found that
investors can be irrational and make predictable errors about the return on
investment on their investments. This empirical study on Individual Investors’
Behaviour is an attempt to know the profile of businessmen at Irinjalakuda and

3
also know the characteristics of the investors so as to know their preference
with respect to their investments. The study also tries to unravel the influence
of demographic factors like gender, age, income and educational qualification
level of the investor (Business).

1.5 OBJECTIVE OF THE STUDY

The following are the important objectives of the study:

(1) To know the preferred investment avenues of the businessmen.

(2) To identify the purpose of Investment.

(3) To analyse the investment pattern.

1.6 RESEARCH METHODOLOGY

The present study is mainly based on primary data and is behavioural in nature.
However, the secondary data will be using at some places of the study
wherever it become necessary. The primary data is going to collect through
structured questionnaire from 50 business people in Irinjalakuda. The
questionnaire consists of 20 questions. The relevant secondary data is
collecting from the websites, books and journals.

1.6.1 Nature of study: This is an analytical study.

1.6.2 Nature of data: Primary data. Secondary data also when it is necessary.

1.6.3 Sources of data: Primary data is collecting through structured

questionnaire and secondary data is collecting from website, books, journals,
etc.

4
1.7 SAMPLE DESIGN

A sample design is the framework, or road map, that serves as the basis for the
selection of a survey sample and affects many other important aspects of a
survey as well. One must define a sampling frame that represents the
population of interest, from which a sample is to be drawn.

1.7.1 Nature of population: Population of finite business men in Irinjalakuda.

1.7.2 Sample unit: Business men in Irinjalakuda.

1.7.3 Method of sampling: Convenience sampling.

1.7.4 Sample size: Size of the sample is 86.

1.8 TOOLS FOR ANALYSIS

 Average
 Percentage
 Tables, charts and graphs.

1.9 CHAPTERISATION

Chapter 1 Introduction

Chapter 2 Review of literature

Chapter 3 Theoretical framework

Chapter 4 Data analysis and Interpretation

Chapter 5 Findings, Suggestions, and Conclusion

5
 CHAPTER 2

REVIEW OF LITERATURE

6
2.1 EMPIRICAL REVIEW

Ramasamy T and VinayakamoorthyS (2000) had concluded the study on

“Investment – a development factor on savings”. The study reveals that, both
savings and investment had equality. It means that an individual wants to have
more investment, first he has to save that extent, savings and investment
decisions are taken separated by an investor with different motives. The
savings and investments are brought about by the changes in income.

Rajarajan V (2000) had conducted a study on the title of “Investors lifestyles

and investment character”. The study reveals that active investors are
dominated by the age group below 35 years, individuals group by above 50
years and passive investors by the age group of 35 to 50 years. Active investors
group and passive investors group have short term perspective while making
their investment decision. Most of the investors read two or more sources of
information to make investment decisions and most of them tend to make
investment decisions on their own.

Thomas A Feuerborn (2001) argued that the individual investor will continue
to be misled by mutual fund companies that market new funds. There no one is
taking the completely honest approach that consumers can trust.

Rajeswari T.R and Ramamoorthy V.E (2001) have conducted a study to

understand the factors influencing the fund selection behaviour of 350 MF
investors in order to provide some meaningful inferences for Asset
Management Companies (AMC) to innovatively design the products. The
analysis was done on the basis of product qualities, fund sponsor qualities and
investor services using questions framed on a five-point Likert scale.

Rajeshwari T.R and Ramamoorthy V.E (2002) studied the financial

behaviour and factors influencing fund/scheme selection of retail investors by
conducting Factor Analysis using Principal Component Analysis, to identify
7
the investor‟ s underlying fund / scheme selection criteria, so as to group them
into specific market segment for designing of the appropriate marketing
strategy.

Singh and Vanita (2004) have examined the investors' preferences and
perception towards MF investments by conducted a survey of 150 respondents
in the city of Delhi. The findings of the study were that the investors' preferred
to invest in public sector MFs with an investment objective of getting tax
exemptions and stayed invested for a period of 3-5 years and the investors
evaluated past performance. The study further concludes by stating that
majority of the investors were dissatisfied with the performance of their MFs
and belonged to the category who held growth schemes.

Ranganayaki N (2005) has concluded a study on the title of “investor’s

perception towards investment with special to women investors.” A sample of
100 respondents in Sulur and adjoining areas was taken. It is concluded that
recurring deposit and post office savings are most preferable investment
avenues in the banking sector. It may be due to safety, liquidity and also for the
benefits. Whenever, one thinks of women and investment the first thing that
comes to mind is gold and Jewellery. But now-a-days women are disproving
the above said belief.

Lenard et. al. (2006) empirically investigated investor’s attitudes toward

mutual funds. The results indicate that the decision to switch funds within a
fund family is affected by investor’s attitude towards risk, current asset
allocation, investment losses, investment mix, capital base of the fund age,
initial fund performance, investment mix, fund and portfolio diversification.
The study reported that these factors are crucial to be considered before
switching funds regardless of whether they invest in non-employer plans or in
both employer and non-employer plans.

Krishnamurthy Suresh, (2007) in an analysis of popular perceptions said that

retail investors, swarmed back to the stock markets in the year2006-2007. The

8
investments of households in shares and debentures rolled by 8.6% to Rs. 5,847
crores in 2003-2004. Households had deposited Rs. 1, 69,000 crores in bank
deposits while investment in small savings nearly 19%. The data suggests that
that in 2003-2004, the household investors had turned extremely conservative.

The study of SaptarshiPurkayastha (2008) reveals that risk tolerance, a

person’s attitude towards accepting risk, is an important concept that has
implications for both financial service providers & consumers. He found that
some opportunities for purveyors of financial services to be selective in their
approach to various groups of individual investors.

Lusardi [Link] (2009) explored the reasons for not investing in the stock market.
The study was conducted on7,138 respondents in US. The findings depicted
that ignorance of investors towards the various factors was the basic reason of
poor investment decision. There are various reasons such as lack of awareness,
lack of participation and poor borrowing behave of the investors.

Kukreja (2012) measured the perception of the investors for investment in

capital market. The present study has been conducted on 120 investors of NCR
region. The finding suggested that age of the respondents significantly affects
theinvestment decision and education had significant impact. The study used
119 variables to examine the perception of investors and these variables
ascertained 72% impact in measuring the perception level. The study
concluded that investment benefits and influences had high relevance in stock
market investment.

9
 CHAPTER 3

THEORITICAL FRAMEWORK

10
3.1 Characteristics of Investment

3.1.1 Risk Factor

Risk is an inherent characteristic of every investment. Risk refers to loss
of principal amount, delay or non-payment of capital or interest,
variability of return etc. Every investment differs in terms of risk
associated with them. However, less risky investments are the most
preferred ones by investors.

3.1.2 Return
Return refers to the income expected from investment done. It is the key
objective for doing investment by investors. Investment provides
benefits to peoples either in the form of regular yields or through capital
appreciation.

3.1.3 Safety of principal

Safety of funds invested is one of the essential ingredients of a good
investment programme. Safety of principal signifies protection against
any possible loss under the changing conditions. Safety of principal can
be achieved through a careful review of economic and industrial trends
before choosing the type of investment. It is clear that no one can make
a forecast of future economic conditions with utmost precision. To
safeguard against certain errors that may creep in while making an
investment decision, extensive diversification is suggested.

3.1.4 Liquidity and Collateral value

A liquid investment is one which can be converted into cash
immediately without monetary loss. Liquid investments help investors
meet emergencies. Stocks are easily marketable only when they provide
adequate return through dividends and capital appreciation. Portfolio of
liquid investments enables the investors to raise funds through the sale
of liquid securities or borrowing by offering them as collateral security.
The investor invests in high grade and readily saleable investments in
order to ensure their liquidity and collateral value.

3.1.5 Stable income

Investors invest their funds in such assets that provide stable income.
Regularity of income is consistent with a good investment programme.
The income should not only be stable but also adequate as well.

11
 3.1.6 Capital growth
One of the important principles of investment is capital appreciation. A
company flourishes when the industry to which it belongs is sound. So, the
investors, by recognizing the connection between industry growth
and capital appreciation should invest in growth stocks. In short, right
issue in the right industry should bebought at the right time.

3.1.7 Tax implications

While planning an investment programme, the tax implications related to
it must be seriously considered. In particular, the amount of income an
investment provides and the burden of income tax on that income should be
given a serious thought. Investors in small income brackets intend to maximize
the cash returns on their investments and hence they are hesitant to take
excessive risks. On the contrary, investors who are not particular about cash
income do not consider tax implications seriously.

3.1.8 Legality
The investor should invest only in such assets which are approved by
law. Illegal securities will land the investor in trouble. Apart from being
satisfied with the legality of investment, the investor should be free from
management of securities. In case of investments in Unit Trust of India and
mutual funds of Life Insurance Corporation, the management of funds is left to
the care of a competent body. It will diversify the pooled funds according to the
principles of safety, liquidity and stability.

3.1.9 Stability of Purchasing Power

Investment is the employment of funds with the objective of earning
income or capital appreciation. In other words, current funds are sacrificed with
the aim of receiving larger amounts of future funds. So, the investor should
consider the purchasing power of future funds. In order to maintain the stability
of purchasing power, the investor should analyse the expected price level
inflation and the possibilities of gains and losses in the investment available to
them.

3.2 Objectives of Investment

3.2.1 To Keep Money Safe

Capital preservation is one of the primary reasons people invest their
money. Some investments help keep hard-earned money safe from being
eroded with time. By parking your funds in these instruments or
schemes, you can ensure that you don’t outlive your savings. Fixed
deposits, government bonds, and even an ordinary savings account can
help keep your money safe. Although the return on investment may be
lower here, the objective of capital preservation is easily met.

12
 3.2.2 To Help to raise money
Another common objective of investing money is to ensure that it grows
into a sizable corpus over time. Capital appreciation is generally a long-
term goal that helps people secure their financial future. To make the
money you earn grow into wealth, you need to consider investment
options that offer a significant return on the initial amount invested.
Some of the best investments to achieve growth include real estate,
mutual funds, commodities, and equity. The risk associated with these
options may be high, but the return is also generally significant.

3.2.3 To Earn a Steady Stream of Income

Investments can also help you earn a steady source of secondary (or
primary) income. Examples of such investments include fixed deposits
that pay out regular interest or stocks of companies that pay investors
dividends consistently. Income-generating investments can help you pay
for your everyday expenses after you’ve retired. Alternatively, they can
also act as excellent sources of supplementary income during your
working years by providing you with additional money to meet outlays
like college expenses or EMIs.

3.2.4 To Minimize the Burden of Tax

Aside from capital growth or preservation, investors also have another
compelling incentive to consider certain investments. This motivation
comes in the form of tax benefits offered by the Income Tax Act, 1961.
Investing in options such as Unit Linked Insurance Plans (ULIPs),
Public Provident Fund (PPF), and Equity Linked Savings Schemes
(ELSS) can be deducted from your total income. This has the effect of
reducing your taxable income, thereby bringing down your tax liability.

3.3 Categories of Investment

3.3.1 Ownership Investments

As the name suggests, these are assets purchased and owned by you, the
investor. Examples of ownership investments include stocks, bullion, and
real estate, among others. If you fund any business, it’s also a kind of
ownership investment.
3.3.2 Lending Investments
Investments in corporate bonds, government bonds, and savings account
qualify as lending investments. When you buy these bonds or park your money
in a savings account, you are basically lending to the government and these
institutions.
3.3.3 Cash Equivalents
Cash equivalents are investments that you can easily convert in cash. In other
words, they are highly liquid. Money market instruments fall in the category of
cash equivalents.

13
3.4 Importance of Investing

3.4.1 Provide a regular income

If you’re retired or approaching retirement, you’ll probably be looking for
something can give you a regular income to cover day-to-day living expenses.
There’s a range of investments, including equities, bonds and property, that can
provide you with regular income that’s often higher than the rate of inflation.

3.4.2 Tailor to your changing needs

You or an Investment Manager can design your investment portfolio to
achieve different goals as you go through life, e.g., you may prefer less risky
options as you get older. With careful planning you can tailor your portfolio to
reflect your changing goals and priorities. If you plan on investing over a long
time period, you may want to invest in funds that have growth potential, risky
sectors such as emerging markets, or private equity where your savings can
ride out short term market changes. If you’re approaching retirement, you may
want to invest in more income-focused options.

3.4.3 Invest to fit your financial circumstances

As your financial circumstances change over time, you can change how
you invest to suit your needs. You can invest lump sums as and when you can,
or smaller regular amounts in a monthly investment plan. If you have the
money available, you can start investing straight away. The sooner you invest,
the longer your investment has to grow. Alternatively, investing a regular
amount each month can help iron out fluctuations in the stock market,
particularly in a volatile market.

3.4.4 Outperform inflation

In order for your savings to grow in real terms over time, they need to
earn a rate of return after tax that’s greater than the rate of inflation. With
today’s low interest rates, it can be difficult to find a savings account that can
give you a return above the current inflation rate. So, it’s worth considering
investments which have the potential to outperform inflation.

3.5 Advantages of Investment

 Investing is the least “active” approach to participating in the markets. It

can be good for those who have an interest in the markets but don’t have
enough interest in it to make it a part of their daily or weekly schedule.

 Some people have extreme difficulty doing short-term trading. Some, in

fact, believe it’s impossible to determine short-term moves with
consistent accuracy. For such people, investing may be a good choice.

14
  Holding a position for more than a year potentially allows you to tap
into the long-term capital gains tax, which is generally a lower tax rate
than short-term capital gains tax.

 Diversification reduces the risk involved in building a portfolio thereby

further reducing the risk for an investor. As Mutual Funds consist of
many securities, investor’s interests are safeguarded if there is a
downfall in other securities so purchased.

3.6 Disadvantages of Investment

 The major disadvantage of investing is that it is always possible to lose

money on whatever investment you make. If you invest in a rare
collectible, the value of it can rise or fall depending on its popularity and
its availability on the market.

 Of the three-time horizons, investing can be the slowest way to make

money, assuming that you could be an excellent swing trader or day
trader.

 Because investing reuses the same capital very infrequently, the annual
returns are generally not as good as a successful professional trader.

 Investors notoriously have a very difficult time outperforming the

market — making investing decisions that result in a better return than if
you simply invested that same money into an equity index fund, such as
the S&P 500, and didn’t touch it. Even many professional fund
managers aren’t able to do that for their clients after costs.

15
 CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

16
In this chapter an attempt is made to study Investment behaviour of
Businessman with special reference to Irinjalakuda area. For this purpose, 86
residents of Irinjalakuda are taken as sample for obtain the information through
questionnaire. This chapter make a detailed analysis from the information
collected.

The following table gives the age of the sample taken.

Table 4.1 showing Age distribution.

Age No. of person Percentage

21-32 20 23

33-41 18 21

42-49 21 24

50 Above 27 32

Total 86 100
Source: primary data

35

30

25
NO. OF PERSON

20

NO. OF PERSON
15
PERCENTAGE
10

0
21-32 33-41 42-49 50 ABOVE
AGE

Figure: 4.1

Out of total random sample the major portion are among 50 above age groups
about 32%. And It is followed by the 42-49 age groups about 24%. The 21-23
and 33-41 age group are about 23% and 21% respectively

17
The following table gives information about the gender distribution amongst
the random sample.

Table 4.2 showing Gender classification

Gender No. of person Percentage

Male 52 60

Female 34 40

Total 86 100
Source: primary data

100

90

80

70
NO. OF PERSON

60

50
PERCENTAGE
40 NO. OF PERSON

30

20

10

0
MALE FEMALE TRANSGENDER
GENDER

Figure 4.2

Among the total samples, the gender distribution was given by the table that
about major portion of random sample are male group about 60% and female
group are about 40%.

18
The sample includes with different married status. Following table shows the
marital status of respondents.

Table 4.3 showing Marital status of respondents.

Marital status No. of persons Percentage

Married 70 81

Single 13 15

Committed 3 4

Total 86 100
Source: primary data

3.5
3
15.1
13

70
81.4

MARRIED SINGLE COMMITTED

Figure: 4.3

Out of the total respondents, the lion share of the respondents is married with
81%. Only 15% are single and 4% are committed.

19
The sample includes persons with different qualification. Following table
shows the qualification of respondents.

Table 4.4 showing Qualification of the respondents.

Qualification No. of person Percentage

12th level 7 8

Graduate 50 58

Post graduate 26 30

Other 3 4
Source: primary data

70

60

50
NO. OF PERSON

40

NO. OF PERSON
30
PERCENTAGE

20

10

0
12TH LEVEL GRADUATE POST GRADUATE OTHER
QUALIFICATION

Figure: 4.4

Among the total sample majority respondents are graduates with 58%. And it is
followed by the post graduates with 30%. The 12th level and other category
respondents are comparatively low with 8% and 4% respectively.

20
The following table shows the annual income of person amongst the random
sample.

Table 4.5 showing Annual income of respondents.

Annual income No. of persons Percentage

Below 35000 9 11

35000-75000 20 23

75000-150000 21 24

Above 150000 36 42

Total 86 100
Source: primary data

45
40
35
NO. OF PERSON

30
BELOW 35000

25
35000-75000

20
75000-150000

15 ABOVE 150000

10
5
0
NO. OF PERSON PERCENTAGE

ANNUAL INCOME

Figure: 4.5

Under this data, most of them have an annual income above 150000 with 42%.
Only 11% of respondents have below 35000. Rest of them have an annual
income between 35000-75000 & 75000-150000 with 23% & 24% respectively.

21
As a part of the study, we can find who all are having financial advisor and
who are not having. The information about it is given below: -

Table 4.6 showing Having financial advisor.

Financial advisor No. of person Percentage

Yes 23 27

No 63 73

Total 86 100

Source: primary data

120

100

80
NO. OF PERSON

60
NO
YES
40

20

0
NO. OF PERCENTAGE
PERSON
HAVING FINANCIAL ADVISOR

Figure: 4.6

Out of 86 respondents 27% of person are having a financial advisor and 73% of
person are not having a financial advisor.

22
Among the sample it shows persons who are investing and persons who aren’t.
That is given below: -

Table 4.7 showing Investing decision of respondents.

Investing No. of person Percentage

Yes 66 77

No 20 23

Total 86 100

Source: primary data

80

70

60
NO. OF PERSON

50

40
YES
30 NO

20

10

0
NO. OF PERCENTAGE
PERSON
INVESTING DECISION

Figure: 4.7

The study shows that persons who are investing is more with 77%. Only 23%
of respondents are not investing.

23
Everyone will have purpose for investment. This is given below: -

Table 4.8 showing Purpose behind investment.

Purpose of investment No. of person Percentage

Wealth creation 40 47

Tax saving 19 23

Earn returns 48 57

Other 23 27
Source: primary data

60

50

40
NO. OF PERSON

30

20

10

0
WEALTH CREATION TAX SAVING EARN RETURNS OTHER

PURPOSE BEHIND INVESTMENT

Figure:4.8

The study shows that majority of respondents’ purpose is earn returns with
57%. It is followed by wealth creation and other purpose like hobby with 47%
and 27%. Only few respondents have a purpose of tax saving with 22%.

24
The savings objective of the respondents is given in the table: -

4.9 showing Savings objective of the respondents.

Savings objective No. of person Percentage

Children’s education 34 41

Retirement 46 55

Healthcare 29 35

Other 26 31
Source: primary data

60

50
NO. OF PERSON

40 CHILDRENS EDUCATION
RETIREMENT
30 HEALTHCARE
OTHER
20

10

SAVINGS OBJECTIVE

Figure: 4.9

The table shows that retirement and children’s education is the highly opted
savings objective with 55% and 41% respectively. It is followed by healthcare
with 35%. And other objectives have 31% of person.

25
Out of the samples collected some have a formal budget to meet their family
expenses and some not have it. The information related to this is given below: -

Table 4.10 showing Formal budget for family expenditure.

Budget for family No. of person Percentage

Yes 46 53

No 40 47

Total 86 100

Source: primary data

41%

YES
NO
59%

Figure: 4.10

The table shows that person who have a formal budget for their family is 53%
and person who don’t have a formal budget is 47%.

26
This study shows different rates which the respondents prefer the investment to
grow. Rate of investment to grow is given in the table below: -

Table 4.11 showing Rate of investment.

Rate of investment No. of person Percentage

Steadily 37 43

At an average 35 40

Fast 11 13

Other 3 4
Source: primary data

100%

90%

80%

70%
NO. OF PERSON

60%

50%

40%

30%

20%

10%

0%
STEADILY AT AN AVERAGE FAST OTHER
RATE OF INVESTMENT

[Link] PERSONS PERCENTAGE

Figure: 4.11

Out of the random sample, 43% and 40% of people want to grow their
investment steadily and at an average respectively. Person who wants fast
growing in their investment is 13%. Only 4% of person are excluded from the
above category.

27
There are certain investment objectives which promote a person to invest. It is
given below: -

Table 4.12 showing Investment objective of respondents.

Investment objective No. of person Percentage

Long term growth 24 28

Growth and income 51 61

Short term growth 8 10

Other 1 1
Source: primary data

60.7
70

60 51
NO. OF PERSON

50
28.6
40

30 24
9.5
20 1.2
8
PERCENTAGE
10 1
NO. OF PERSONS
0
LONG TERM GROWTH AND SHORT TERM OTHER
GROWTH INCOME GROWTH

INVESTMENT OBJECTIVE

NO. OF PERSONS PERCENTAGE

Figure: 4.12

From the above table we can conclude that 28% of people want long term
growth, 61% of people want growth and income and 10% of people want short
term growth. People who are not interested is 1%.

28
We all spend our income in any way. So, details regarding this are given down
the table: -

Table 4.13 showing Spend monthly income.

Monthly income on No. of person Percentage

Shopping 8 9

Investment 7 8

Savings 10 12

All of the above 67 71

Source: primary data

9%

7%

SHOPPING
11%
INVESTMENT
SAVINGS
ALL OF THE ABOVE

73%

Figure: 4.13

In this data, 71% of people spend their monthly income in all the three. Only
8% of people spend their income in investment. For shopping and savings 9%
and 12% people spend.

29
There are four main sectors to invest. People prefer these four sectors
alternatively. The information about this is given on the table below: -

Table 4.14 showing Investing sector preferred by respondents.

Sectors No. of person Percentage

Private sector 21 24

Public sector 24 28

Government sector 32 38

Foreign sector 8 10
Source: primary data

40
35
NO .OF PERSON

30
25
20
15
10
PERCENTAGE
5
NO. OF PERSONS
0
PRIVATE PUBLIC GOVERNMENT FOREIGN
SECTOR SECTOR SECTOR SECTOR

INVESTMENT SECTOR

NO. OF PERSONS PERCENTAGE

Figure: 4.14

The table implies that majority of the respondents prefer government sector
with 38%. It is followed by the private sector and public sector with 25% and
28% respectively. Only 10% of people prefer foreign sector.

30
The following table under shows the time period which respondents prefer to
invest: -

Table 4.15 showing Time period prefer to invest.

Time period No. of person Percentage

Short term(0-1years) 7 8

Medium (1-5years) 48 57

Long term(above 5years) 30 35

Source: primary data

NO. OF PERSONS PERCENTAGE

60

56.6
50
48
NO. OF PERSON

40

35.3
30
30

20

10

7 8.2
0
SHORT TERM MEDIUM TERM LONG TERM
TIME PERIOD

Figure: 4.15

The time period most investor prefer is medium term with 57% followed by
long term with 35% and short term with 8%.

31
It is very important to monitor the investment daily, weekly or occasionally.
Data of respondents who monitor their investment is given in the table: -

Table 4.16 showing Monitor investment.

Monitoring No. of person Percentage

Daily 11 13

Monthly 27 31

Occasionally 48 56

Total 86 100

Source: primary data

60
NO. OF PERSON

50

40
48 55.8
30
20 0 27
31.5
10 0 0
0 11 0 0 OCCASIONALLY
0 12.7
0 0 MONTHLY
NO. OF PERSONS 0 DAILY
PERCENTAGE

MONITOR

DAILY MONTHLY OCCASIONALLY

Figure: 4.16

From the following table, people who monitor occasionally is more with 56%
and the least is people who monitor daily with 13%. Respondents who monitor
monthly 31%.

32
The following table gives the information of managing investment: -

Table 4.17 showing Managing investment.

Managing investment No. of person Percentage

Self-managed 59 69

Stock brokerage 13 15

Through bank 23 27

Source: primary data

70 69

60 59

50
NO. OF PERSON

40

30 27.1
23

20 15.3
13

10

0
SELF MANAGED STOCK BROKERAGE THROUGH BANK
MANAGE INVESTMENT

NO. OF PERSONS PERCENTAGE

Figure: 4.16

The study shows that 69% of respondents are self-managed. The respondents
who manage their investment through stock brokerage is 15% and manage
through bank in 27%.

33
The table below shows the different rating of investment preferred by
respondents: -

Table 4.18 showing rate of investing of respondents.

Rate of investing No of person Percentage

0-15% 34 40

15-30% 24 28

30-50% 18 21

Above 50% 9 11
Source: primary data

35

30

25
NO. OF PERSON

20

15

10

0
1 2 3
RATE OF INVESTING

0-15% 15-30% 30-50% ABOVE 50%

Figure: 4.18

The above table shows that majority of the respondent invest 0-15% of their
income with 40%. It is followed by 15-30% and 30-50% with 28% of
respondents and 21% of respondents respectively. Only 11% of respondents
invest above 50% of their income.

34
Some will be ready to take risk of losing their principal investment amount and
won’t be ready. The details are given in the table: -

Table 4.19 showing Investment risk of losing principal amount.

Risk taking No. of person Percentage

Yes 24 28

No 62 72

Total 86 100
Source: primary data

24

62

YES NO

Figure: 4.19

From the table only 28% of respondents are willing to take the risk of losing
principal amount. And 72% of respondents are not willing to take the risk.

35
Following table shows random data of respondents who invest in share market
and who don’t.

Table 4.20 showing Investment in share market.

Invest in share market No. of person Percentage

Yes 35 41

No 50 59

Source: primary data

41%

YES
NO

59%

Figure: 4.20

Out of the following, 41% of respondents invest in share market and 59% of
respondents don’t invest in share market.

36
Different factors are there while investing money. The following shows the
detail of that factors: -

Table 4.21showing Factors consider while investing.

Factors No. of person Percentage

Safety of principle 44 52

Low risk 25 29

High returns 29 34

Other 13 15
Source: primary data

120

100

80
NO. OF PERSON

60

51.8
40
34.1
29.4

20 15.3

44 25 29 13
0
SAFETY OF PRINCIPLE LOW RISK HIGH RETURNS OTHER
FACTORS

Series3 Series5

Figure: 4.21

The study shows that most of them consider safety of principal as factor with
52%. 34% of people consider high return and 29% of people consider low risk
as an investing factor. Only 15 people consider other factors.

37
Some will set aside certain savings for their children. Those are given in the
table: -

Table 4.22 showing Savings for children’s education and marriage of the
respondents.

Savings set aside No. of person Percentage

Yes 27 31

No 59 69

Total 86 100

Source: primary data

31%

YES
NO

69%

Figure: 4.21

In the data shown, only 31% of respondent make savings for their children’s
education and marriage and 69% of respondent have no savings for their
children.

38
The following is the source of investment advice: -

Table 4.22 showing Source of investment advice of respondents.

Source No. of person Percentage

Newspapers 20 23

Family or friends 64 75

Books 13 15

Other 12 14
Source: primary data

70

60

50
NO. OF PERSON

40

30

20

10

0
NEWSPAPERS FAMILY OF FRIENDS BOOKS OTHER
SOURCES
Figure: 4.22

From the following data we come to the point that 23% of people get source
from newspaper, 75% of people get source from friends & family, 15% get
source from books and 14% get from other sources.

39
Following table shows the investment experience of the respondents: -

Table 4.23 showing Investment experience of respondents.

Experience No. of person Percentage

Beginning (no investment

experience). 23 27
Moderate (comfortable with
fixed deposit, chit funds, etc). 44 51
Knowledgeable (has bought
or sold individual shares). 16 19
Experienced (frequently
traded in stocks, options, etc) 3 3

Total 86 100
Source: primary data

90
3
80
16
70
NO. OF PERSON

60

50
44
40

30

20
23
10

0
NO. OF PERSON
INVESTMENT EXPERIENCE

BEGINNING MODERATE KNOWLEDGEABLE EXPERIENCED

Figure: 4.23

From the random samples moderate experience is more with 51%. It is

followed by beginning and knowledgeable with 27% and 19% respectively.
Persons who are experienced is only 3% of respondents.

40
 CHAPTER 5

FINDINGS, SUGGESTIONS & CONCLUSION

41
5.1 Findings

 We found that majority of respondents are having age above 50

with 31.4%.

 Out of 86 respondents 52 are male and 34 are female. In that

81.4% are married and rest of them are single and committed.

 Our study revealed that 58.1% are graduates and 30.2% are post
graduates. They are more as compared to others.

 When we asked from the respondents about their income, we

found that most of the respondents are having annual income
above 150000.

 In this data most of them are investors with 76.7%. Only 23.3%
of respondents don’t invest.

 When we asked regarding the purpose of investment, we found

that earn returns is more important followed by wealth creation.

 Respondents have many savings objectives. But retirement has

more with 46 respondents.

 In this study most of them have a formal budget for their family
expenditure.

 Majority of the respondents prefer their investment to grow

steadily. And after that 40.7% prefer to grow at an average rate.

 60.7% of people said their investment objective is growth and

income followed by long term growth with 28.6%. And only
9.5% of respondents have short term growth as their objective.

 Government sector is the highly opted sector among the

respondents with 37.6%. Only 9.4% prefer to invest in foreign
sector.

 Respondents have experienced of investment between 1-5 years.

 From the data we can say that only 10 respondents out of 85

monitor their investment daily. 56% of respondents are not
bothered about their investment as they check occasionally.

42
 Nowadays people self-manage their investment because 59
respondents have said that self-managed. Only 15.3% has said
stock brokerage.

 When coming to risk taking very few are willing to take the risk
of losing their principal amount.

 31.4% of respondents have set aside certain amount for their

children’s education and marriage.

 Friends and family are the source for making an investment

choice. 75.3% has said that they got the source from their friends
and family.

 In this study we can see that more than half of them are
comfortable with fixed deposit, chit funds, etc.

43
5.2 Suggestions

 Monitoring system adopted by the businessmen is not satisfactory. We

would like to suggest them that they must try to monitor their
investment positions on weekly basis rather than monthly or
occasionally.

 Most of the businessmen invest 0-15% of their income. So, this is a

suggestion that they should try to invest more of their income.

 According to my findings I suggest those who don’t consider a financial

advisor yet now in investment criteria’s its well better to make a good
financial advisor for your sake of every investment criteria taking place.

 According to this study, most of them prefer self-managed investment

criteria. For them I suggest to manage their investment through stock
brokerage because Stock brokers have access to valuable research
resources that clients can tap into in order to get more insight on the
investments that they're interested in. You'll often find that stock brokers
are also willing to give you broader financial advice that goes beyond
simple investing.

 Most of the respondents have chosen friends and family as a source of

information for investment. As we know they don’t be able to say all
information about investment. Thus, respondents should try to get aware
themselves by internet or through investment agents.

44
 5.3 Conclusion

Based on the above analytical tables it can be concluded that key objective for
savings is the retirement, followed by healthcare, children’s education, home
purchase, marriage and other. Safety of principle would be most critical factor
which is considered most before investment followed by high returns, low risk
and maturity period. Returns is the main reason for investment, future
expenditure, tax savings and wealth creation are other reasons. Selection of a
perfect investment avenue is a difficult task to any investor. An effort is made
to identify the tastes and preferences of a sample of investors selected
randomly out of a large population.

45
BIBLIOGRAPHY

46
Bibliography

Book: -

Investment management, Dr Abdul Assis Koroth.

The principles of investment management, Gladstone Stanley.

Journal: -

Asian journal of Management Research.

Websites: -

[Link]

[Link]

[Link]

[Link]

[Link]

47
APPENDIX

48
 QUESTIONNAIRE

Topic: Investment behaviour of businessman.

Dear friends,

The questionnaire is designed to provide responses that will assist in collecting

information and opinions about the ‘Investment behaviour of businessman’. I
request you to kindly fill up the questionnaire below by choosing appropriate
options.

1) Your age:

21-32 33-41

42-49 50 above

2) Gender : Male Female

3) Marital status: Married Single Committed

4) Qualification:

+2 level Graduate

Post graduate Other

5) Annual income:

Below 35000 35000-75000

75000-150000 Above 150000

6) Do you have a financial advisor?

Yes No

7) Do you invest?

Yes No

8) In which sector do you prefer to invest your money?

Private sector Public sector

Government sector Foreign sector

49
9) What is the time period you prefer to invest?

Short term (0-1year) medium term (1-5years)

Long term (above 5years)

10) Do you have formal budget for family expenditure?

Yes No

11) What percentage of your income do you invest?

0-15% 15-30%

30-50% Above 50%

12) Can you take the risk of losing principal investment amount?

Yes No

13) Do you invest your money in share market?

Yes No

14) What is the purpose behind investment?

Wealth creation Tax saving

Earn returns Others

15) What are your savings objectives?

Children’s education Retirement

Healthcare Other

16) What factor do you consider before investing?

Safety of principle Low risk

High returns Other

50
17) What is your investment objective?

Long term growth Growth and income

Short term growth Other

18) How do you spend your monthly income?

Shopping Investment

Savings All of the above

19) How often do you monitor your investment?

Daily Monthly Occasionally

20) How do you manage your investment?

Self-managed Stock brokerage Through bank

21) Have you set aside funds specifically for the education or marriage of
your children?

Yes No

22) What is the source of investment advice?

Newspapers Family or friends

Books Other

23) What best describes your investment experience?

Beginning (No investment experience)

Moderate (Comfortable with fixed deposit, chit funds, etc)

Knowledgeable (has bought or sold individual shares)

Experienced (Frequently traded in stocks commodities, etc

51