A PROJECT REPORT ON “INVESTORS PERCEPTION

ON DIFFERENT INVESTMENT AVENUES IN

NAGALAND”

Kohima -797001
Nagaland, 2024
Department of Business Administration
6th Semester
Financial Institution and markets ( BAC 6.2)

Submitted by :Bothuka shohe

Roll no:21BAD05

Submitted to: Sir Ahel Vitsu

Assistant professor
Submitted on : 18th march 2024
 ACKNOWLEDGEMENT

I express my profound thanks to Assistant Professor, Sir Ahel Vitsu

Department of Business Administration, for assigning me this project
work which has allowed me to learn and experience about the
different types of investing opportunities found in Nagaland . I,
express my heartfelt gratitude to my respondents who not only answer
my question but also suggestions .

Once again, I extent my sincere appreciation to all those who have

contributed directly or indirectly to the completion of this report .

Bothuka shohe
Roll no: 21BAD05
6th semester
St. Joseph’s College (Autonomous) Jakhama
 DECLARATION

I , the Bothuka shohe Roll no. 21BAD05 a student of

Department of Business Administration of St. Joseph’s
College(Autonomous) Jakhama hereby declare that the project
work presented in this report is my own work & has been
carried out under the Assistant Professor, Department of
Business Administration St. Joseph’s College (Autonomous)
Jakhama.. This project has not been previously submitted to
any other universities of my examination

Bothuka shohe
Roll no: 21BAD05
Dept. of business administration
 CONTENTS

• Introduction
• Abstract
• Literature review
• Objectives
• Different types of investments available in Nagaland
• Research Methodology
• Limitation of the study
• Result analyses
• Findings
• Suggestions
• Learning and Key takeaways
• Conclusions
 INTRODUCTION

In this global economic world, all kinds of endeavour are made to

earn and save money to make the present smooth and future secure.
To get rid of dilapidate financial condition and to make a secure
future, plans have to be made not only to save money but also to
create money and hence the essence of investment comes into being
in the modern competitive world. The word "investment" can be
defined in many ways according to different theories and principles.
Generally, investment is the application of money for earning more
money. Investment also means savings or savings made through
delayed consumption. According to economics, investment is the
utilization of resources in order to increase income or production
output in the future. According to finance, the practice of investment
refers to the buying of a financial product or any valued item with
anticipation that positive returns will be received in the future.
According to business theories, investment is that activity in which a
manufacturer buys a physical asset, for example, stock or production
equipment, in expectation that this will help the business to prosper in
the long run. Many individuals find investments to be fascinating
because they can participate in the decision making process and see
the results of their choices but not all investments are profitable, as
there is always an element of risk. Future is uncertain, and one must
determine the quantum of risk that he/she can bear since higher return
is associated with accepting more risk. There are different modes of
investment and all does not participate directly towards investment.
When one is opening a Savings Bank Account or a Provident Fund or
a Pension Scheme, one is connecting with the financial market but not
in a direct way. Today the field of investment is even more dynamic
than it was only a decade ago as more and more financial markets are
linking up, any changes taking place in one market has got its impact
on an overall basis. Thus the paper tries to find the preferred mode of
investment and the factors contributing to such preferences amongst
people in Nagaland .
 ABSTRACT

In today’s world, mere earning money may make our present comfortable but
does not ensure future security for us. In the rapidly changing world of
economy, earnings often failed to make both ends meet; again inflation played
an important role to make nonchalant economic condition. Even savings did not
help until properly channelized and transformed into investment. In the light of
the above mentioned, the present paper had made an attempt to find out the
modes of investment preferred by people in Nagaland, by collecting data from 3
respondents of the region and knowing the factors which mould their mind for
such preferences.
 LITERATURE REVIEW

K.P. & Kumar (2014) has stated that in all types of financial
investments there is variability in the actual and expected returns due
to risk and hence risk perception of investors is an important factor
that influences the investment decisions. In the paper, the factors
influencing the risk perception of investors are identified viz,
unpredictability of returns, knowledge about the financial assets,
chance for incurring loss, diversification of portfolios, and
dependence on professional investment advice. The investors were
provided with nine statements relating to risk, to measure their
perception towards risk. They have studied the relation between risk
perception of the investors in the Kerala State and their investment
decisions in mutual funds is analysed.
Khaparde and Bhute (2014) in their paper have stated that the
perception of investors differs around on the basis of different factors
like age, income, experience of investing, investment objectives and
individual social needs. Their study involves the presentation of
investor’s perception towards the impact of macroeconomic
performance on stock market behaviour. They have studied and
analyzed the perception on the basis of individual factors with respect
to different macroeconomic variables seems to be bothering the stock
market behaviour.
Selvi (2015)10, discussed some studies that are available on the
investors' attitude towards investment avenues failed to offer a lot of
information the conventional investment avenues, bank deposits and
gold are the most preferred avenues, while insurance schemes and post
office instruments are getting increased attention. She concluded most
of the respondents have not preferred to invest their savings in UTI and
mutual funds.
Saini et al (2011) have analyzed mutual fund investments in relation
to investor’s behaviour. Investors’ opinion and perception has been
studied relating to various issues like type of mutual fund scheme,
main objective behind investing in mutual fund scheme, role of
financial advisors and brokers,
 OBJECTIVES

• To create awareness of the different options available in

Nagaland .
• To understand the different characteristics ( risk and return ) of
at least some of the investment option .
• To understand the perception of the investors.
• To stimulate interest in the field of finance and investments.
Different types of investment available in Nagaland

1. Insurance remains a popular avenue for investment, offering

residents a sense of security and financial protection against
unforeseen events. Insurance plays a vital role in mitigating financial
risks and providing peace of mind to individuals, businesses, and
communities. In Nagaland, as elsewhere, insurance products offer
protection against unforeseen events such as accidents, illnesses,
natural disasters, and property damage. Whether it's life insurance
providing financial security for loved ones in the event of the
policyholder's death, health insurance covering medical expenses, or
property insurance safeguarding against losses due to fire or theft,
insurance serves as a safety net in times of crisis. Additionally,
insurance products like motor insurance offer coverage for vehicles
against accidents and liabilities, while business insurance protects
enterprises from financial losses arising from various risks. In
Nagaland, where unforeseen events such as floods, landslides, and
accidents can pose significant financial challenges, insurance plays a
crucial role in helping individuals and businesses recover and rebuild.
Moreover, insurance fosters economic stability by spreading risks
across a pool of policyholders and promoting prudent risk
management practices. It's essential for individuals and businesses in
Nagaland to understand their insurance needs, choose appropriate
coverage options, and ensure compliance with regulatory
requirements to safeguard their financial well-being and future.

2. Gold holds a significant cultural and traditional value in the region,

often sought after as a tangible asset for investment and wealth
preservation. Gold has long been revered as a symbol of wealth,
stability, and prosperity, making it a coveted asset for investors and
individuals alike. In Nagaland, as in many cultures worldwide, gold
holds deep cultural and traditional significance, often being used in
religious ceremonies, weddings, and festivals. Beyond its cultural
value, gold serves as a reliable investment option, offering a hedge
against inflation and economic uncertainty. Whether in the form of
jewelry , coins, bars, or financial instruments like exchange-traded
funds (ETFs) and sovereign gold bonds (SGBs), gold provides a
tangible store of value that can withstand market volatility. Moreover,
gold investment in Nagaland is often seen as a means of preserving
wealth and diversifying investment portfolios. Its liquidity, portability,
and intrinsic value make gold an attractive asset for investors seeking
stability and long-term wealth preservation. Despite fluctuations in
gold prices, its enduring appeal and universal recognition ensure that
it remains a timeless asset class for investors in Nagaland and beyond.

3.Mutual funds have been gaining traction among investors in

Nagaland, providing opportunities for diversified investment
portfolios managed by professionals. Mutual funds are investment
vehicles that pool money from multiple investors to invest in a
diversified portfolio of stocks, bonds, or other securities. In Nagaland,
as elsewhere, mutual funds offer individuals a convenient and
accessible way to participate in the financial markets while benefiting
from professional management. Investors can choose from a variety
of mutual fund types based on their investment goals, risk tolerance,
and time horizon. Equity funds invest primarily in stocks, providing
potential for capital appreciation over the long term. Bond funds, on
the other hand, focus on fixed-income securities, offering stability
and income generation. Additionally, balanced funds combine both
stocks and bonds to provide a balanced approach to investing.
Mutual funds in Nagaland are managed by experienced fund
managers who make investment decisions on behalf of investors,
aiming to achieve the fund's objectives. With mutual funds, investors
can diversify their portfolios across various asset classes and
industries, reducing overall risk. Moreover, mutual funds offer
liquidity, allowing investors to buy or sell units at the prevailing net
asset value (NAV) on any business day. Whether investing for wealth
accumulation, retirement planning, or other financial goals, mutual
funds offer Nagaland residents a flexible and efficient investment
solution. However, it's essential for investors to carefully evaluate
fund performance, fees, and risks before investing to ensure
alignment with their financial objectives and risk tolerance.

5. Real estate investments in Nagaland have seen steady growth, with

increasing demand for residential and commercial properties driven
by urbanization and infrastructure development initiatives. Real estate
encompasses a diverse range of properties, including residential,
commercial, and industrial spaces, as well as land. Investing in real
estate has long been regarded as a tangible and lucrative opportunity
for wealth accumulation and diversification. In Nagaland, as in many
regions worldwide, real estate investment holds significant appeal
due to its potential for capital appreciation, rental income, and as a
hedge against inflation. Whether acquiring land for development,
purchasing residential properties for rental income, or investing in
commercial spaces for business ventures, real estate offers investors
a tangible asset with the potential for long-term growth. Moreover,
real estate investment in Nagaland is often influenced by cultural
factors, demographic trends, and government policies, making it
crucial for investors to conduct thorough research and seek
professional guidance. Despite its potential rewards, real estate
investment also comes with risks such as market fluctuations,
regulatory changes, and property maintenance expenses. Overall,
real estate remains a cornerstone of investment portfolios, offering
both stability and opportunities for wealth creation in Nagaland and
beyond.
5.Public Provident Fund (PPF) is a popular long-term investment
scheme offered by the Indian government, providing individuals with
a secure avenue for savings and wealth accumulation. In Nagaland, as
across the country, the PPF scheme serves as a valuable financial tool
for individuals looking to build a retirement corpus, fund their
children's education, or achieve other long-term financial goals. PPF
accounts can be opened at designated banks, post offices, and
authorized financial institutions, offering attractive interest rates and
tax benefits. The maturity period of a PPF account is 15 years, which
can be extended indefinitely in blocks of 5 years, providing investors
with a stable and predictable investment horizon. Contributions made
to a PPF account are eligible for tax deductions under Section 80C of
the Income Tax Act, up to specified limits, making it a tax-efficient
investment option. Moreover, the interest earned and the maturity
proceeds are tax-free, enhancing the overall returns for investors.
With its combination of safety, tax benefits, and long-term wealth
accumulation potential, the Public Provident Fund remains a popular
choice for prudent investors in Nagaland seeking financial security
and stability.
 RESEARCH METHODOLOGY

The present study is exploratory in nature and is based on primary

data while are collected from the residents of Nagaland . The sample
consisted of 5 residents of Nagaland engaged in different sectors but
with the common qualification of being graduates in different
disciplines. Based on previous research in related areas, a
questionnaire has been designed which has been administered to the
sample for data collection and the collected data was analyzed with
the help of tables and graphs.

LIMITATION OF THE STUDY

• The sample is only 5 respondents and the opinions of the

respondents may not synchronize with the opinions of the entire
population.
• The opinions / preferences expressed by the respondent investors
are purely personal and they are subjected to individual bias in
their nature.
RESULT ANALYSIS
This section consists of the analysis of data collected during the
survey. The data is analyzed by using google forms.
FINDINGS
According to the study analysis 80 %are male and 20% are female,
most respondents prefer to invest in safety avenues like , gold and
insurance etc . while some were interested in and mutual banks with
some risk and 2 respondents with real estate.

SUGGESTIONS
Safety of money is the main objective of every person but there are
some investment alternatives where risk is less and with good return.
Investor should monitor that avenues so that their money will
appreciate and then can take the help from the financial advisor and
from various internet sources where their money will appreciate more
with minimum risk and maximum return.
Learning and key takeaways

1.Financial Education: Continuous learning and staying updated

on investment trends, market developments, and financial literacy
are essential for investors in Nagaland. Regularly educating oneself
about investment opportunities and strategies can help make
informed decisions and adapt to changing market conditions.
2Preferences for traditional investments: investors in Nagaland
may still opt for traditional investment avenues such as real estate
,gold , and fixed deposits due to familiarity and perceived stability.
 Signature

1)Responder: Aketovi assumi (government employee)……………………….....

2)Responder: Livitoli shohe (government employee)…………………………

3) Responder: Tovito shohe (government employee)……………………………

4)Responder: Akitoli yeptho (government employee)……………………………

5)Responder: Ahoka shohe (business/ self employed)…………………………

 CONCLUSION

The study reveals that the investors investment preferences reasons

are differs in the investment avenues. Investment in the different
avenues is the person own desire and it also depend upon person
individual income and age etc. Young generation people are ready to
take a risk at some extent whereas old age people they are not willing
to take a risk instead they are focusing on the safety of principal and
return factors. every individual wants to invest in that avenue where
their money is safe and in return with moderate return. So, in the
investment, the investors perception plays a major role for investing.
 WEBLIOGRAPHY /BIBLOGRAPHY

• Article Link:
https://iaeme.com/MasterAdmin/Journal_uploads/JOM/VOLU
ME_10_ISSUE_1/JOM_10_01_005.pdf
• https://indiainvestment grid.gov.in/state/nagaland.com (India
investment grid)
• http://www.ijsrms.com