A Report Submitted in Partial Fulfilment of the Requirements for the award of Degree of

MASTER OF BUSINESS ADMINISTRATION

PROJECT FIRST REVIEW
Submitted by

     NAME: M. REVATHI

  REG NO: 68619200136
MBA: FINANCIAL SERVICE MANAGEMENT
Under the guidance of
Dr. Rajeswari. M      
Professor
Department of Master of Business Administration
ANNA UNIVERSITY - DISTANCE
Chennai - 600025
 "A STUDY ON INVESTMENT BEHAVIOUR OF
INDIVIDUAL INVESTOR TOWARDS FINANCIAL
PLANNING ON PORTFOLIO INVESTMENT"
 NEED FOR THE STUDY
• Need to known how to determine an asset
allocation for investment goals and risk tolerance.
• Need to divide capital between the appropriate
asset classes.
• Need to analyse and rebalance it periodically,
because changes in price movements may cause
initial weightings to change.
• To asses portfolio’s actual asset allocation,
quantitatively categorize the investments and
determine their values proportion to the whole.
 OBJECTIVES OF THE STUDY

Primary Objective:
• To identify the factors considered by the individual investor towards portfolio
investment and to analyze the financial planning of an individual investor.
Secondary Objective: 
• To study the factors considered by individual investors and preference towards
investment on different portfolio.
• To find the risk taking ability of an individual investor on type of investment.
• To identify the different investment avenues available for the individual investor.
• To find out the relationship of investment behaviour and investment options.
  RESEARCH METHODOLOGY
• Research methodology is the specific procedures or technique used to identify, select, process and
analyze information about a topic. 
• The research methodology in the present study deals with research design, data collection
methods, sampling methods, survey, analysis and interpretations.
• Approaches to Research: Descriptive approach - A problem is described by the researcher by using
questionnaire. This approach enables a researcher to explore new areas of investigation. It is also
called Statistical Research.
Research Design:
   A research design is the arrangement of conditions for collection and analysis of data in a manner
that aims to combine relevance to the research purpose with economy in procedure.
• A well-structured questionnaire is framed.
• Findings are made and necessary suggestions and recommendations are given.
Data Collection method:
   Data collection is one of the most important aspects of research. Two types of data are, Primary data
and Secondary data.
• Sampling : Sampling is that part of statistical practice concerned with
the selection of individual observations intended to yield some
knowledge about a population of concern, especially for the purposes
of statistical inference.
• Sample method : Under non – probability sampling convenience
sampling method.
• Sample size: 120
 TOOLS TO BE USED

• For analysing the data, the SPSS statistical software can be used. The tools
like
• Percentage method
• Correlation Analysis
• Chi square Analysis
                                ANALYSIS & INTREPRETATION
 1. Knowledge of financial planning
S.No  Particulars  No of respondents  Percentage(%) 
1  Very good  12  10% 
2  Good  60  50% 
3  Average  42  35% 
4  Poor  6  5% 
  Total  120  100% 
 2.From which source you come to know about
various investment options?
S.No  Particulars  No of respondents  Percentage(%) 
1  Newspaper  16  13% 
2  TV  18  15% 
3  Friend/Relative  44  37% 
4  Broker  7  6% 
5  Other  35  29% 
    Total  120  100% 
3. What kind of investment do you prefer
most?
S.No  Particulars  No of respondents  Percentage (%) 

1  Shares  25  21% 

2  Mutual Funds  20  17% 

3  Gold  37  31% 

4  Bonds  3  3% 

5  Fixed deposit  24  20% 

6  Insurance  11  9% 

  Total  120  100% 

 S.No  Particulars  No of respondents  Percentage(%) 
4. Factors 1  Safety of principal  38  32% 
considered 2  Low risk  49  41% 
before 3  High returns  27  23% 

investment 4  Maturity period  6  5% 

  Total  120  100% 

5. Reason for Investment
S.No  Particulars  No of respondents  Percentage(%) 

1  Earn returns  27  23% 

2  Future expenditure  55  46% 

3  Tax savings  20  17% 

4  Wealth creation  18  15% 

  Total  120  100% 
Correlation
X  Y  X2  Y2  XY 
analysis
45  56  2025  3136  2520 
• Based on respondents
investment frequencies Vs
monthly income investment.  29  40  841  1600  1160 
•  Let X be the investment
frequencies and Y be the
monthly income investment. 24  19  576  361  456 
•  r=      n(∑xy)-(∑x)(∑y)
             _____________
22  5  484  25  110 
       √(n∑x2−(∑x)2)(n∑y2−(∑y)2)
•  r=  0.917 (positive correlation)
120  120  3626  5122  4246 
Chi Square
Analysis Various Performance of
Investment investment
• Null Hypothesis(Ho): There is no significant
difference between various investment options Respondents  options  options  Total 
and performance of investment options.
Newspaper/  34  22  56 
• Alternative Hypothesis(H1): There is  publication 
significant difference between various
investment options and performance of
investment options
Friend/Relative  44  38  82 
• Degree of freedom = 3
• Table value (0.05) = 7.815 Media  35  43  78 
• Calculated Value = 7.96.
Broker/Agent  7  17  24 
• Since, the calculated value 7.96 is greater than
the table value 7.815 at 5% level of
Significance. Hence, there is a significant Total  120  120  240 
difference between various investment options
and performance of investment options.
WORK TO BE DONE
             Have to  frame the findings, suggestions & conclusion.
 REFERENCES
• C.R. Kothari, Research Methodology- Methods and techniques, 2nd revised
edition, New age international publishers, page no.1-54.
• John W. Best, James V. Kahn, Research in Education, 7th edition ,1995, Prentice
hall of India, Page no. 1-61
• Principles of good research and research proposal guide, Prepared by the Policy,
Performance and Quality Assurance Unit (Adults) Tamsin White, March 2006.
• Sandra Poncet, Research Methodology 2: Writing a good research paper,
Semester 1, Academic year, 2012-2013.