ankita - a behavioral study of investment scenario in india

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CHAPTER 1

INTRODUCTION

Emerging strong even during the scariest phase of global financial meltdown, India

has become one of the favorite investment destinations for the foreign investors across

the globe. The investment scenario in India is getting better and better with each

passing day due to high confidence level of the investors. Today, India is considered

the 4th biggest economy in the world. Its impressive GDP rate, especially in the field

of purchasing power, has catapulted it to second position among all the developing

nations. According to forecasts, Indian economy will grow to become 60% in size of

the economy of US. It will also witness macro-level stability in economic conditions.

Behind all this, investment can be said to be the key player.

Need for Study: To help the Research N Data to prepare an Industry report on

Investment market in India.

Objectives of the Study:

To study the preferences and perceptions made by different customer segment.

To study the need of an investment plan and triggers and barriers.

To study the competition situation and key players in the market.

To study the different Investment products and variety of investment

opportunities available.

Problem Statement: A detailed study of Investment Options in India and

customer preferences.

Data sources:

First Phase is the collection of Secondary Data:

This involves the collection of Secondary data using internet and internal sources for

getting knowledge about the investment industry.

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Second Phase is Collection of Primary Data and Analysis:

After collecting the Secondary data the next phase was collection of primary data

using Questionnaires. The questionnaires were filled by around 60 people who were

from Bangalore region. The sample consists of people who are employed or working

or dealing in investment options to know their investment preferences. Based on their

preferences they invest in different plans. The data collected then entered into MS-

excel for analysis of the data.

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CHAPTER 2

INDIAN INVESTMENT INDUSTRY PROFILE

Introduction: Investment is referred to as the concept of deferred consumption,

which might comprise of purchasing an asset, rendering a loan, keeping the saved

funds in a bank account such that it might generate lucrative returns in the future. The

options of investments are huge; all of them having different risk-reward trade off.

This concludes that the investment industry is really broad and that is why

understanding the core concepts of investments and accordingly analyzing them is

essential.

Wealth Creation

Starting the process of Investment of money is the first cornerstone to wealth creation

especially when we know that India is on a fast track growth. In the pre-independence

era (before 1947) India was mainly characterized by people who saves and saves-

heavily. It was the country of savers. But post-independence the growth has picked its

pace and also is the rate of inflation. Prices of essential commodities like food,

housing, gas, electricity, education etc has been increasing at a dramatic pace of more

than 9%. This is one of the biggest disadvantages of a growing economy inflation rate

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seems to fly like a limitless bull. Investment is required to fight inflation and in

addition make your money grow.

Change of shift from saver to an investor

The transition form a "nation that only saves" to a "nation of investors" is evident.

Taking the statistics of last 35years, the number of retail as well as institutional

investors in India has multiplied several folds. Not only Indian investors but

international investors are eying India as an Investment heaven. Only next to China,

India has been rates as the fastest growing economies in recent times. India has

learned to differentiate between saving and investment. If earning money is a need

then savings and investment should be a habit. Savings in isolation is not of much

help because inflation is eating our money. Inflation makes our money less powerful

each day. This is the reason why we need to fight inflation (to protect our money) by a

great tool called investment. India is growing and a person who is investing is actually

contributing to the growth of the nation; in return he/she will get the desired returns.

Important is to identify a suitable "asset class" for oneself and start investing in it.

Like retired people would like to invest in bonds, deposits; middle aged men would

like to invest in mutual funds, real estate but people who are young and dynamic

would like to invest in direct equity like stocks.

Confidence of Investors and GDP growth

Why we have seen this transition and change of shift form savings to investment? The

answer clearly lies in the confidence of Indian Investors in the future growth

prospects of India. This confidence is fueled by a consistent GDP growth of around

8%. Average performance of various asset classes is as listed below:

Savings account (3% to 3.5%)

Bonds (6% to 7%)

Bank or Companies Deposits (6% to 7%)

Gold (8% to 10%)

Real Estate (10% to 12%)

Stocks (12% to 15%)

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Art (15% to 20%)

Talking about short term investment horizon and GDP growth almost assured at 7%

to 8%, the focus on investors in Indian market shall be more on selecting a suitable

asset class for investment rather then debating of growth and risks of investment.

India will grow and top brains are convinced and assures average retail investors of

this growth scene. People who are already in the boat (investing) might have realized

the power of investment in Indian economy, but for people who have not started yet

for them it‘s not late. In long run India is certain to make big money for its investors

but consistent GDP growth rate proves very encouraging even for short-term

investors.

But India is India and volatility is only the other name for this dynamic country.

Changes in political scenario, inflation, drought, flood, rise of interest rates, market

demands all in totality affect the performance of the market. People should realize that

India is a growing economy and such volatility is expected. The price of stocks may

fall and rise but investors must not loose faith; it is important to keep the focus and

attention of the bigger picture of India's growth.

Investment in India

Investment in Indian market

India, among the European investors, is believed to be a good investment despite

political uncertainty, bureaucratic hassles, shortages of power and infrastructural

deficiencies. India presents a vast potential for overseas investment and is actively

encouraging the entrance of foreign players into the market. No company, of any size,

aspiring to be a global player can, for long ignores this country which is expected to

become one of the top three emerging economies.

Success in India

Success in India will depend on the correct estimation of the country's potential,

underestimation of its complexity or overestimation of its possibilities can lead to

failure. While calculating, due consideration should be given to the factor of the

inherent difficulties and uncertainties of functioning in the Indian system. Entering

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India's marketplace requires a well-designed plan backed by serious thought and

careful research. For those who take the time and look to India as an opportunity for

long-term growth, not short-term profit- the trip will be well worth the effort.

Market potential

India is the fifth largest economy in the world (ranking above France, Italy, the United

Kingdom, and Russia) and has the third largest GDP in the entire continent of Asia. It

is also the second largest among emerging nations. (These indicators are based on

purchasing power parity.) India is also one of the few markets in the world which

offers high prospects for growth and earning potential in practically all areas of

business. Yet, despite the practically unlimited possibilities in India for overseas

businesses, the world's most populous democracy has, until fairly recently, failed to

get the kind of enthusiastic attention generated by other emerging economies such as

China.

Lack of enthusiasm among investors

The reason being, after independence from Britain 50 years ago, India developed a

highly protected, semi-socialist autarkic economy. Structural and bureaucratic

impediments were vigorously fostered, along with a distrust of foreign business. Even

as today the climate in India has seen a sea change, smashing barriers and actively

seeking foreign investment, many companies still see it as a difficult market. India is

rightfully quoted to be an incomparable country and is both frustrating and

challenging at the same time. Foreign investors should be prepared to take India as it

is with all of its difficulties, contradictions and challenges.

Developing a basic understanding or potential of the Indian market, envisaging

and developing a Market Entry Strategy and implementing these strategies when

actually entering the market are three basic steps to make a successful entry into

India.

Developing a basic understanding or potential of the Indian market

The Indian middle class is large and growing; wages are low; many workers are well

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educated and speak English; investors are optimistic and local stocks are up; despite

political turmoil, the country presses on with economic reforms.

But there is still cause for worries-

Infrastructural hassles:

The rapid economic growth of the last few years has put heavy stress on India's

infrastructural facilities. The projections of further expansion in key areas could snap

the already strained lines of transportation unless massive programs of expansion and

modernization are put in place. Problems include power demand shortfall, port traffic

capacity mismatch, poor road conditions (only half of the country's roads are

surfaced), low telephone penetration (1.4% of population).

Indian Bureaucracy:

Although the Indian government is well aware of the need for reform and is pushing

ahead in this area, business still has to deal with an inefficient and sometimes still

slow-moving bureaucracy.

Diverse Market:

The Indian market is widely diverse. The country has 17 official languages, 6 major

religions, and ethnic diversity as wide as all of Europe. Thus, tastes and preferences

differ greatly among sections of consumers.

Therefore, it is advisable to develop a good understanding of the Indian market and

overall economy before taking the plunge. Research firms in India can provide the

information to determine how, when and where to enter the market. There are also

companies which can guide the foreign firm through the entry process from beginning

to end --performing the requisite research, assisting with configuration of the project,

helping develop Indian partners and financing, finding the land or ready premises, and

pushing through the paperwork required.

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Developing up-front takes:

Market Study Is there a need for the products/services/technology? What is the

probable market for the product/service? Where is the market located? Which mix of

products and services will find the most acceptability and be the most likely to

generate sales? What distribution and sales channels are available? What costs will be

involved? Who is the competitor?

Check on Economic Policies:

The general economic direction in India is toward liberalization and globalization. But

the process is slow. Before jumping into the market, it is necessary to discover

whether government policies exist relating to the particular area of business and if

there are political concerns which should be taken into account.

Current Investment Scenario in India

Globalization and Foreign Direct Investment form an integral part of all the developed

as well as developing economies. In fact, the growth of the underdeveloped

economies is also dependant on these key factors. These components equip any nation

with new skills, new items and provide smooth access to markets and technology.

Today, every nation across the globe is looking for foreign and overseas investors.

Whether it's India or China, everyone wants foreign investments. According to recent

trends, India is only second to China in the league of favorite investment destinations.

In the report issued by Department of Industrial Policy and Promotion, the fund

inflow to India reached US$ 27.3 billion in the period 2008-09, considered from the

month of April 2008 to the month of March 2009. Last quarter of 2008-09 alone

witnessed an inflow of approx. US$ 6.2 billion.

In the reports issued by Reserve Bank of India for outward investment from India, a

growth of 29.6% to US$17.4 billion has been seen in the period 2007-08. The figures

do not include individuals and banks. India is considered the 2nd highest foreign

employer in the United Kingdom after the United States.

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When people invest

Saving essentially means storing your money; investing means using your money to

earn more money. You don‘t have to be wealthy to invest. But you have to invest if

you ever want to be wealthy, or even have enough money to live well and retire well.

As with saving, when you‘re considering investing you first need to set your goals.

You need to be clear about what you‘re trying to achieve, and how long you‘ve got.

That will influence the investment decisions you make.

Why should one invest?

One needs to invest to:

earn return on your idle resources

generate a specified sum of money for a specific goal in life

make a provision for an uncertain future

One of the important reasons why one needs to invest wisely is to meet the cost of

Inflation. Inflation is the rate at which the cost of living increases.

The cost of living is simply what it costs to buy the goods and services you need to

live. Inflation causes money to lose value because it will not buy the same amount of

a good or a service in the future as it does now or did in the past. For example, if there

was a 6% inflation rate for the next 20 years, a Rs. 100 purchase today would cost Rs.

321 in 20 years. This is why it is important to consider inflation as a factor in any

long-term investment strategy. Remember to look at an investment's 'real' rate of

return, which is the return after inflation. The aim of investments should be to provide

a return above the inflation rate to ensure that the investment does not decrease in

value. For example, if the annual inflation rate is 6%, then the investment will need to

earn more than 6% to ensure it increases in value.

If the after-tax return on your investment is less than the inflation rate, then your

assets have actually decreased in value; that is, they won't buy as much today as they

did last year.

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When to start Investing?

The sooner one starts investing the better. By investing early you allow your

investments more time to grow, whereby the concept of compounding (as we shall see

later) increases your income, by accumulating the principal and the interest or

dividend earned on it, year after year. The three golden rules for all investors are:

Invest early

Invest regularly

Invest for long term and not short term

What care should one take while investing?

Before making any investment, one must ensure to:

1. Obtain written documents explaining the investment

2. Read and understand such documents

3. Verify the legitimacy of the investment

4. Find out the costs and benefits associated with the investment

5. Assess the risk-return profile of the investment

6. Know the liquidity and safety aspects of the investment

7. Ascertain if it is appropriate for your specific goals

8. Compare these details with other investment opportunities available

9. Examine if it fits in with other investments you are considering or you have already

made

10. Deal only through an authorized intermediary

11. Seek all clarifications about the intermediary and the investment

12. Explore the options available to you if something were to go wrong, and then, if

satisfied, make the investment.

These are called the Twelve Important Steps to Investing.

What is meant by Interest?

When we borrow money, we are expected to pay for using it – this is known as

Interest. Interest is an amount charged to the borrower for the privilege of using the

lender‘s money. Interest is usually calculated as a percentage of the principal balance

(the amount of money borrowed). The percentage rate may be fixed for the life of the

loan, or it may be variable, depending on the terms of the loan.

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What factors determine interest rates?

When we talk of interest rates, there are different types of interest rates - rates that

banks offer to their depositors, rates that they lend to their borrowers, the rate at

which the Government borrows in the Bond/Government Securities market, rates

offered to investors in small savings schemes like NSC, PPF, rates at which

companies issue fixed deposits etc.

The factors which govern these interest rates are mostly economy related and are

commonly referred to as macroeconomic factors. Some of these factors are:

Demand for money

Level of Government borrowings

Supply of money

Inflation rate

The Reserve Bank of India and the Government policies which determine some of

the variables mentioned above.

What are various Short-term financial options available for

investment?

Broadly speaking, savings bank account, money market/liquid funds and fixed

deposits with banks may be considered as short-term financial investment options:

Savings Bank Account is often the first banking product people use, which offers

low interest (4%-5% p.a.), making them only marginally better than fixed deposits.

Money Market or Liquid Funds are a specialized form of mutual funds that

invest in extremely short-term fixed income instruments and thereby provide easy

liquidity. Unlike most mutual funds, money market funds are primarily oriented

towards protecting your capital and then, aim to maximize returns. Money market

funds usually yield better returns than savings accounts, but lower than bank fixed

deposits.

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Fixed Deposits with Banks are also referred to as term deposits and minimum

investment period for bank FDs is 30 days. Fixed Deposits with banks are for

investors with low risk appetite, and may be considered for 6-12 months investment

period as normally interest on less than 6 months bank FDs is likely to be lower than

money market fund returns.

What are various Long-term financial options available for

investment?

Post Office Savings Schemes, Public Provident Fund, Company Fixed Deposits,

Bonds and Debentures, Mutual Funds etc.

Post Office Savings: Post Office Monthly Income Scheme is a low risk saving

instrument, which can be availed through any post office. It provides an interest rate

of 8% per annum, which is paid monthly. Minimum amount, which can be invested, is

Rs. 1,000/- and additional investment in multiples of 1,000/-. Maximum amount is Rs.

3, 00,000/- (if Single) or Rs. 6, 00,000/- (if held jointly) during a year. It has a

maturity period of 6 years. A bonus of 10% is paid at the time of maturity. Premature

withdrawal is permitted if deposit is more than one year old. A deduction of 5% is

levied from the principal amount if withdrawn prematurely; the 10% bonus is also

denied.

Public Provident Fund: A long term savings instrument with a maturity of 15

years and interest payable at 8% per annum compounded annually. A PPF account

can be opened through a nationalized bank at anytime during the year and is open all

through the year for depositing money. Tax benefits can be availed for the amount

invested and interest accrued is tax-free. A withdrawal is permissible every year from

the seventh financial year of the date of opening of the account and the amount of

withdrawal will be limited to 50% of the balance at credit at the end of the 4th year

immediately preceding the year in which the amount is withdrawn or at the end of the

preceding year whichever is lower the amount of loan if any.

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Company Fixed Deposits: These are short-term (six months) to medium-term

(three to five years) borrowings by companies at a fixed rate of interest which is

payable monthly, quarterly, semi annually or annually. They can also be cumulative

fixed deposits where the entire principal along with the interest is paid at the end of

the loan period. The rate of interest varies between 6-9% per annum for company

FDs. The interest received is after deduction of taxes.

Bonds: It is a fixed income (debt) instrument issued for a period of more than one

year with the purpose of raising capital. The central or state government, corporations

and similar institutions sell bonds. A bond is generally a promise to repay the

principal along with a fixed rate of interest on a specified date, called the Maturity

Date.

Mutual Funds: These are funds operated by an investment company which raises

money from the public and invests in a group of assets (shares, debentures etc.), in

accordance with a stated set of objectives. It is a substitute for those who are unable to

invest directly in equities or debt because of resource, time or knowledge constraints.

Benefits include professional money management, buying in small amounts and

diversification. Mutual fund units are issued and redeemed by the Fund Management

Company based on the fund's net asset value (NAV), which is determined at the end

of each trading session. NAV is calculated as the value of all the shares held by the

fund, minus expenses, divided by the number of units issued. Mutual Funds are

usually long term investment vehicle though there some categories of mutual funds,

such as money market mutual funds which are short term instruments.

Types of Products /Services /Solutions

Investment is the process of risking one‘s savings in the hope of a monetary gain. An

investment involves the act of using a good or its money equivalent to create another

good or fetch the returns of the invested amount in terms on interest or profit share.

The basic purpose of an investment is to hold an asset in order to obtain recurring or

capital gains. You may like to refer to some of the best ways of investing

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money before going through the different types of investments. Take a look at the

various types of investments.

Aggressive Investment: Aggressive investors invest in stock markets and

business ventures. This type of investment can involve the act of investing in a real

estate, renovating it and renting it out. Aggressive investment involves a greater

amount of risk.

Business Management: The value of the business assets is determined after

which they are used to generate revenue. Business assets can be physical, financial or

intangible. Physical assets include property and machinery that is in possession of the

business. Financial assets include the liquid assets of a business and the company

stocks and bonds.

Conservative Investment: Conservative investors invest in cash. They put their

money in investment accounts like savings, mutual funds and certificates of deposit.

While some plans accrue short term profits some are long term deposits. The first

step towards investing in Indian market is to evaluate individual requirements for

cash, competence to undertake involved risks and the amount of returns that the

investor is expecting.

Following are details of the saving plans which are

considered in project:-

1. Kisan vikas patra

a) Maturity Period – 8 years 7 months

b) Money doubles in the after maturity period

c) Mode of payment- Lump sum

d) Minimum amount—Rs 100

e) Maximum amount—No limit

f) No tax and loan facility is available.

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Advantages:-

Long term investment.

Return is double after maturity.

Mostly liked by people from rural and people whose income is less.

Disadvantages:-

If money is taken back before maturity period than interest provide is 3.5%.

Investment time is very high, so less preferred.

Product Availability:-

Through agents and all post offices.

Marketing of the product:-

Through agents, advertisements, Word of mouth and internet.

2. National Saving Certificate

a) Maturity Period—6 years

b) Interest—8.16% (compounded half yearly)




f) Loan facility—No

g) Tax benefits—yes

Advantages:-

Tax benefit is there.

Interest is compounded half yearly so, it increases after 6 months and becomes

12.06% after 6 years.

Mostly liked by every category of people.

Disadvantages:-

Money is encased back after maturity period only.

Investment time is high.

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Through agents, banks and all post offices.



3. Public Provident Fund


b) Interest—8%

c) Mode of payment- Lump sum/Installments


e) Maximum amount—Rs 70,000

f) Loan benefit –Yes

g) Tax Benefits—Yes

Advantages:-

Money is paid in installments.

People mostly invest in it for tax benefit.

Loan facility is available.

Deposits in this account are not subject to attachment under an order or a

decree of Court and are also free of Wealth Tax.

Disadvantages:-

Return interest is less.

People invest only for tax.

Maturity period is high.


Through agents, Nationalize bank and all post offices



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4. Post Office Monthly Income Scheme (POMIS)


b) Interest—8%



e) Maximum amount—Rs 4, 50,000

f) Loan benefit –no

g) Tax Benefits—no

Advantages:-

Money is paid monthly, acc. to investment and interest.

Deposit may be made in cash or cherub or demand draft.

Mostly liked by old age people.

Disadvantages:-

To get good monthly income, we have to invest high lump sum amount.

No tax benefits.





5. Post Office Term Deposits (POTD)

a) Maturity Period—1-5 years

b) Interest—6.25-7.5%




f) Loan Facility –no


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Advantages:-

Maturity period is less.

Amount is less, so affordable for every category.

Disadvantages:-

Return interest is less, so liked by people whose income is more.

No tax and loan facility.



6. Post Office Recurring Deposits (PORD)


b) If Rs10 is invested for 5 years than Rs600 becomes Rs728.90

c) Mode of payment- Lump sum/Installments



f) Loan Facility –Yes


Advantages:-

Loan facility is available.

Payments are also through installments.

Low investment, so liked by daily earning wage people.

Disadvantages:-

Less interest acc. to maturity period.

Only popular among low earning people.



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7. Post Office saving Account (POSA)

a) Maturity Period—min 1 year

b) Interest—3.5%

c) Mode of payment- any type of payment

d) Minimum amount—20

e) Maximum amount—1, 00,000


g) Tax Benefits—Yes

Advantages:-

Tax facility is available so people prefer it.

Payments are through any mode.

Disadvantages:-

People do not use it as the investments.


Through agents sand all post offices



8. Senior Citizen Saving Scheme (SCSS)

a) Maturity Period—5 year (can be extended for 3 years)

b) Interest—9 %( compounded quarterly)



e) Maximum amount—15, 00,000



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Advantages:-

Money can be taken back before maturity period.

Disadvantages:-

Less interest acc. to maturity period.





9. Systematic Investment Plan (SIP)

a) Maturity Period—min. 6 months

b) Interest—depends on market

c) Mode of Payment-- Installments


e) Maximum amount—No Limit


g) Tax Benefits—On Tax Saver Plan

Advantages:-

Payments are through installments.

Good returns when the market is down.

Least Risky

Disadvantages:-

Variable return because of market dependable.

More transparency.


Through agents, Distributors and mutual fund offices.



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10. Fixed Deposits (FD)

a) Minimum amount:-

Nationalize Banks—Rs 5000/10000

Private Bank—Rs 10000

Co-operative Bank—Rs 500/1000

b) Loan—Yes (Bank Overdraft)

c) Tax Benefit—No

d) Mode of payment- Lump sum

e) Minimum maturity period —15 days

f) Maximum maturity period —10 years

h) Maximum amount—No limit

Advantages:-

Loan facility is available (Bank overdraft).

Maturity period is very less.

Mostly liked by every category of people, they take it as safe side.

Disadvantages:-

Return interest is acc. to maturity period.

To get good return investment must be high.


Through agents, Nationalize banks and all post offices.



11. Pay Roll Savings Scheme

Under this scheme, any monthly salaried person can voluntarily authorize his

appointing authority or employer to deduct monthly contributions from his salary and

to remit into anyone of the savings schemes like Post Office Recurring Deposit, Post

Office Time Deposit, National Savings Certificate (VIII issue) and Public Provident

Fund Scheme.

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The group leader appointed in each organization for collection purpose is paid 2%

commission for his service who implements the scheme in the respective concern.

Advantages:-

Collection is through a concern person, so money investment is good.

Disadvantages:-

People do not refer it because they want to do personally and acc. to their

requirements.

12. RBI Bonds

a) Maturity Period-- 5 years

b) Interest—8% (compounded half yearly)



e) Maximum amount—Rs 2, 00,000

f) Loan benefit –Yes

g) Tax Benefits—yes (on returns only)

Advantages:-

Loan and tax facility is available.

Good return due to half yearly compounded interest.

Disadvantages:-

To get good monthly income, we have to invest high lump sum amount.

13. Mutual Funds

Mutual Fund is a trust that pools the savings of a number of investors who share a

common financial goal. Each scheme of a mutual fund can have different character

and objectives. Mutual funds issue units to the investors, which represent an equitable

right in the assets of the mutual fund.

Dividend income from mutual fund units will be exempt from income tax with effect

from July 1, 1999. Further, investors can get rebate from tax under section 88 of

Income Tax Act, 1961 by investing in Equity Linked Saving Schemes of mutual

funds. Further benefits are also available under section 54EA and 54EB with regard to

relief from long term capital gains tax in certain specified schemes.

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Advantages:-

Portfolio Diversification.

Professional management.

Reduction / Diversification of Risk.

Liquidity.

Flexibility & Convenience.

Reduction in Transaction cost.

Safety of regulated environment.

Choice of schemes.

Transparency

Disadvantages:-

No control over Cost in the Hands of an Investor.

No tailor-made Portfolios.

Difficulty in selecting a Suitable Fund Scheme.

14. Shares

Historically shares have outperformed all the other investment instruments and given

the maximum returns in the long run. In the twenty-five year period of 1980-2005

while the other instruments have barely managed to generate returns at a rate higher

than the inflation rate (7.10%), on an average shares have given returns of about 17%

in a year and that does not even take into account the dividend income from them.

Were we to factor in the dividend income as well, the shares would have given even

higher returns during the same period.

Advantages:-

Dividend Income.

Tax Advantages:-

The dividend income is tax-free.

Have to pay only a 10% short term capital gains tax on the profits made from

investments.

No need to pay any long-term capital gains tax on the profits if you sell the

shares after holding them for a period of one year.

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Easy liquidity.

Disadvantages:-

Risks ---the only disadvantage in investing in shares

Company specific risk and market risk.

15. Insurance

Insurance features among the best investment alternative as it offers services to

indemnify your life, assets and money besides providing satisfactory and risk free

profits. Indian Insurance Market offers various investment options with reasonably

priced premium. Some of the popular Insurance policies in India are Home Insurance

policies, Life Insurance policies, Health Insurance policies and Car Insurance policies.

Some top Insurance firm in India under whom you can buy insurance scheme are LIC,

SBI Life, ICICI Prudential, Bajaj Allianz, Birla Sunlife, HDFC Standard Life,

Reliance Life, Max NewYork Life, Metlife, Tata AIG, Kotak Mahindra Life, ING

Life Insurance, etc.

Factors to be consider before investing

Risk and return

Every investment entails a degree of risk. The larger the potential return on any

investment, generally the higher the risk it has. This means the greater the chance of

large fluctuations in its value over time – from significant gains to possibly the loss of

some or all of your initial investment.

If your investment is classed as ‗low risk‘ it means that its returns will be lower, but

the risk is less. However, if the return of the investment is lower than the inflation

rate, the buying power of your money will also decrease. So even ‗low risk‘

investments carry a significant degree of risk.

Timing is also a risk when you have to sell an investment. The market could be in a

downturn, so you won't get the best price. Similarly, you may sell your investment too

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early because you have lost confidence in it and then if the market improves you

could lose out. Everyone‘s tolerance of risk is different, and it will vary depending on

your stage in life, as well as your circumstances.

Diversification

If all this information about risks leads you to the conclusion you don't want to put all

your money into the one investment but instead several, then you've started to think

about diversification.

Diversification is when you divide your investments into different areas to reduce the

overall level of risk. Like the truism: ‗Don‘t put all your eggs in one basket‘,

diversification is a fundamental aspect of investing well.

For example, a balanced investment portfolio (a group of investments) can include a

range of high risk, moderate risk and low risk investments such as property, shares,

managed funds, and other investments.

Timeframes

Imagine that your goal is to travel the world. You want to leave in six months‘ time

and you haven't saved nearly enough money yet, so you decide to invest to try and

make up some of the difference.

You could punt on high return investments, but as they carry a higher risk, if they fell

in value, there may not have enough time to make up the loss. So if you were prudent

you would generally choose a lower risk investment with lower returns, or a mix of

both high and lower risk investments (with more of the latter), to balance out the risk

and returns.

If you planned to travel in three years‘ time, you would have the luxury of being able

to choose a greater proportion of higher risk investments with higher returns, because

you would have more time to make up any temporary falls in their values.

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This simple example shows how risk levels and timeframes (the amount of time you

hold your investments) are interrelated, and you shouldn‘t consider one without the

other. Generally, the more investment time you have, the greater the investment risk

you can afford to carry, and hence, the higher your returns over time.

Do your research

When you start to look for investments, there are three basic areas that you need to

consider:

The amount of time that you have to let your money grow.

The level of risk that each individual investment carries.

How to combine the individual investments in a way that will reduce your

risk, yet give the level of return you want. You shouldn't consider any one

investment in isolation, but rather, how each would work with the others in

your investment portfolio.

A good web site to start your research is FIDO, on the website of the Australian

Securities and Investments Commission (ASIC).

Borrowing to invest

If you don‘t have all the money you need for an investment, you may be able to take

out a loan from a financial institution. Don't forget to shop around for the best loan

option for your needs, and make sure you‘ll be able to manage the repayments. You

should seek professional advice before borrowing, and try to have some money in

reserve in case things go wrong. Because if your investment doesn't go the way you

planned, or you lose your job, you'll still need to meet the loan repayments!

Short Term and Long Term Investments

Short Term Investments - Which Are Best?

If you need to make money quickly, consider short term investments. Short term

investments allow you to invest an amount of money at a high yield interest rate, and

gain access to the return sooner rather than later.

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There are several short term investment options out there, and the key to making

money successfully is finding the best short term investments. And that starts with

learning the answer to the question you probably have: what are short term

investments?

Defining Short Term Investments

A short tern investment fund is a fund that earns you a return on your money in a

short period of time, such as one to ten years. This is different than retirement

investing, and it can be a challenge to find short team, high yield investments. Good

short term investments will have a high interest rate, allowing you to earn substantial

money immediately.

The Need for Short Term Investments

You might need short term investments if you have a pressing need coming up in the

near future. If, for example, you might need to have a down payment for a house or

car in a year or two, you could make use out of short term investment options. Also,

you might use this type of fund in replacement of a traditional savings account,

because you will earn a higher rate of return. Some even choose to use short term

investment funds to supplement their retirement income.

How to Use Short Term Investments

If you are interested in short term investments, talk to your financial advisor. He or

she can tell you what the best short term investment opportunity you can use will be.

Then, invest your money, and leave it alone. Allow it to gain interest for the course of

the investment period. When the fund comes to term, you will have earned interest on

the money you invested.

Decide what amount of your total income you are willing to invest in your fund. Most

people are comfortable with investing around ten percent of their total income. Then,

choose the investment to use. It is best to take the amount and invest it into one

particular investment. Your long term investments are where diversification is

helpful.

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Long Term Investment Strategies that Work!

Planning for your future and retirement relies on planning the right kinds of long term

investments. There are many different types of long term financing investments, and

everyone needs to have some sort of investments for their future.

Planning your retirement and long term investments go hand in hand.

Importance of Long Term Investments

Let's face it. You will not be able to work forever. No matter how healthy you are,

there will come a time when you will not be able to work, due to health problems or

simply aging. What will you do for an income when the time comes to retire? This is

why planning your long term investments carefully is so important.

Maybe you think you will be able to rely on Medicare and social security to take care

of you during your retirement. Well, if that is your plan, it is time to look at the news.

Social security is in trouble. Politicians are trying to repair the problem, but chances

are in another twenty years, or even less, there will be little to nothing left for you in

the social security budget.

Finally, you never know what the future is going to hold. Will you stay healthy? Or,

will you have some serious medical expenses that you will need to have finances for.

Long term investments give you the security to know that in dire circumstances,

money is there.

Long Term Investment Strategies

So, you realize that you need to start looking into long term investments. But where

do you start? How do you know which investments are the best long term

investments? Should you use a broker, or do it on your own. Here are some of the

most tried and true long term investment strategies.

Start by Setting Goals

As with any other type of investing, proper long term investments start by setting

proper goals. How much do you want to have when you retire? What age do you want

to retire? How much should you invest monthly to reach that goal? Are you willing to

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do your own investing, or do you want someone to show you the ropes. Write these

goals down to help guide you as you choose your investments.

Choose the Right Firm

If you decide to seek help looking for your investments, choosing the right firm is

important. Make sure you choose a firm that will follow your investment goals. They

should work with you to find the best investments, not against you. You should feel

like you are in control, even with their help.

Category of Investment

Investment can be done through following ways:-

I. Variable return

II. Fixed return

1. Variable return: - In this the return totally depends on the market like mutual fund

investments. In this SIP(systematic investment plan) can be taken as small saving

plan.SIP helps the customers to b shares of mutual fund by making regular payments-

usually as little as Rs500.

2. Fixed return: - In this the return is being fixed earlier by the government. The

chances of change in the rate of interest are less.

Where to Invest in India?

The financial sector in India, specifically the banking stocks have been doing well

now. The health of the Indian banks seems to be strong and a lot of growth is

expected in the organic frontier. The IT stocks too have been faring well and that is

why it is advisable that the investors invest in stocks of quality companies that have a

good earnings track record. The other choice of stocks has been the consumer goods

stocks, auto stocks, agriculture-related stocks. Some of the favorite scrip‘s that

investors can look forward to are Infosys Technologies, HDFC Bank, ICICI Bank.

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KEY CHALLENGES / BARRIERS

The investing story in India has not been always that smooth. Pitfalls are sure to co-

exist. The main restraint on India's growth now happens to be its infrastructure. On

the other hand, infrastructure is India's biggest opportunity as well. The fiscal deficit

of India also poses a big threat to the investment industry in India. For an emerging

economy like India, it is recommended that an investor always balances the unique

risks against the potential for high long-term growth. Accordingly the decision for

investment should be made.

Of late, the Indian economy is turning out to be extremely conducive in terms of

domestic and foreign investments. India Investments has been the major propelling

force towards India's attainment of self-sustained growth by way of rapid

industrialization. The pioneers of the investment industry has been Foreign Direct

Investment (FDI) and Investments made by NRIs.

Foreign Direct Investments in India has been gearing up momentum every passing

day. So, to view an economy which is entirely open to the global markets, the

investment industry in India should be groomed in a manner that the maximum

returns are achieved. It is advisable that the investment industry's potential should

neither be overestimated nor underestimated. We should know how to deal with the

complexities of the investment industry and grow along with.

The challenges lie in the case of the individual investor account. While there has been

a cent per cent growth in debt funds, growth in equity funds has fallen by 50 per cent.

The sales in equity products – which were as high as Rs 8,000 crore in July 2009 –

have plummeted by 50 per cent and continue to be around Rs 4,000 crore in

November 2009. This was mainly on account of the paradigm shift in the process of

selling these products.

While earlier the agents' commission was paid by the company and was incorporated

into sales price, the regulation stipulating that the customer pay the commission

directly and by a separate cherub to the sales agent has witnessed stiff opposition.

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Sale of equity products have fallen dramatically in the last 4-5 months while

redemptions have gone up as investors have found good returns after a long wait.

The truth of the matter is that the average Indian investor is a greenhorn when it

comes to financial markets. The causes are many: the lack of opportunity, lack of

conceptual understanding and the influence of a fixed-income orientation in the

Indian culture, which even applied to the trader category that operate stockistships

and showrooms for the big brand name companies. Their minimum expectation is that

the family's running expenses ought to be assured by a revenue stream that has little

risk attached to it. In this he is no different from the salaried employee.

In India, one is at best at the mercy of the broker-friend-advisor network. Not that it is

always unhelpful, but the individual investor's own situation and risk preference are

matters that he should be able to articulate and then apply to an investment strategy

that combines the usual four: cash and equivalents, Government-backed bonds, debt,

and equity. The catch is that as few have the capability to do the dynamic juggling

amongst the four on their own, they need the help of a relatively low-cost, low-risk

selection of mutual funds. This requires a level of professional advisory which is not

readily available today. Largely it is a case of the blind being led by those with partial

sight, at best.

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CHAPTER 3

COMPANY PROFILE

About ResearchNData

It provide the latest information on International and Regional markets, key

industries, the top companies, new products, key projects and most recent trends.

Finding relevant information and titles from one single source is always not easy for

end users. Its endeavor is to present a very user friendly interface which can be

leveraged as a one stop source by individual researchers and corporate alike. The

design and layouts of the website has been kept very user friendly and help is

available in case of any difficulty.

There is dearth of sources, which serve the demand for APAC and MENA country

reports. Its endeavor is to bridge that gap for the interest of our clients and to

stimulate growth. In short, we enable your informed decisions for better business

prospects and growth.

Its aim is to help its clients grow with just in time information, accurate insights and

in-depth intelligence. ResearchNData‘s Insights & Analysis products are compiled by

experienced association of researchers, in-house knowledge workers and domain

specialists.

It is striving continuously to build a strong reputation for delivering fast information

for making quick & better business decisions in client‘s competitive ecosystem. It

gathers its own data and leverage information through a far-reaching global network

using robust methodologies. It also leverages intelligence from our partners, who are

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9specialists in their own niche fields. The idea is to provide clients with each delicate

piece of information and a 360 degree industry view.

It is its highly qualified team of analysts, who leverage their industry experience to

deliver analytics, insights, opinion and advice on the latest trends and macro

economic conditions. Widely appreciated in their own fields, its analysts are

frequently quoted in leading industry publications and press.

Research Methodology

ResearchNData have supreme focus on quality of information and validity of data that

it deliver or store in its website. The Team is confident of providing right sets of

information, based on experience from their respective fields.

Experienced and dynamic professionals in Knowledge Work

RND Team is built carefully with Industry experts from their respective domains who

are experienced with latest Research techniques and have consulting exposure with

clients.

Analysts and consultants probe for an extensive array of factual inputs including

statistics, surveys, and interviews, to validate research findings and make confident

statements. Data verification is done with variety of analytic techniques. Regular

training and continuous professional developments are

built in the well laid processes to make sure all are

updated.

There is a huge component of primary research involved

as well. Expert interviews with leading industry

participants and peer reviews are regularly done to debate findings. It makes sure that

research findings are conclusion oriented and actionable, strongly supported by field

data and primary insights. There are independent points of view from our experienced

team as well in the reports.

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Reliable Information from the Right sources

The research methodology is with proven track record. It delivers consistent, and

actionable data that is uncomplicated to tap, utilize and reference in business planning

and strategy formulations.

Information is collated through transparent, definite and process laid research

methods. Business decisions are made by clients based on robustly sourced and

citable data; hence it takes supreme care in quality control. The Research process is

managed by experienced teams and there is rigorous control on the quality of findings

at all stages.

Databases are built robustly and refreshed at regular intervals. Sophisticated

technology and techniques are used to collect proprietary data, and its employees are

trained using best practices to ensure the reliability of modus operandi.

Product Area

Knowledge Centre

Company Capsule

Project Mart

Data Centre

Knowledge Centre

“Knowledge Centre” is a true Industry gateway. Insightful analysis, risk

evaluations and industry forecasting based on our distinctive research provides

the true picture of a specific market, industry or development. Industry

intellect enables our clients to make informed decisions and be always ready

to take proactive steps. The relevant titles are regularly refreshed and involve

primary research and intelligence from Industry experts. The growth

parameters and forecasts are very carefully architected to act as pathfinders for

client‘s business boost. We have the largest array of 1000+ Industry report

titles without considering granular sub categories among the broader titles.

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The titles set are exhaustive and designed to meet all requirements of Users in

respective domains.

The reports are available as basic overview versions, whereas for detail view

there are advanced reports and Analyst level very advanced reports in most of

the titles.


methods. Analysts and consultants probe for an extensive array of factual

inputs including statistics, surveys, and interviews, to validate research

findings and make confident statements. Data verification is done with variety

of analytic techniques.

There is a huge component of primary research involved as well. Expert

interviews with leading industry participants and peer reviews are regularly

done to debate findings. We make sure that research findings are conclusion

oriented and actionable, strongly supported by field data and primary insights.

There are independent points of view from our experienced team in the

reports.

Company Capsule

“Company Capsule” covers company profiles of present leaders and aspiring

leaders in their respective fields. The information areas include performance

metrics, financial analysis, SWOT, demographics, insights and take aways.In

this process of leveraging information, clients can investigate on competitors

and potential alliance partners. The latest company capsules enable to get a

definitive glance on the entities and help in taking accurate decisions.

RND has the largest number of 10, 000 + Company profiles. The major

newsmakers and potential up comers are covered in the database of titles. This

makes sure that any sort of competition mapping is possible in a

domain/industry and strategic directions can be reached for alliances or other

plans.

36 | P a g e

The profiles are available as basic overview versions, whereas for detail view

there are advanced reports and Analyst level very advanced profiles in all

segments.




findings and build a rich information base. Databases are built robustly and

refreshed at regular intervals. Sophisticated technology and techniques are

used to collect proprietary data, and our employees are trained using best

practices to ensure the reliability of methods.





There are independent points of view from our experienced team as well in the

reports.

Project Mart

“Project Mart” covers in-depth and insightful project feasibility, viability and

practicability analysis. Our reports will expose the true picture for the

project/product in question in a particular geography. We include location

analysis, in-depth risk analysis and ROI prospects. Economic, technical, legal,

financial and all connected feasibilities are analyzed in detail.

The material involves evaluation of a proposal designed to determine the

complicatedness in carrying out a designated project. Clients appreciate the in-

depth coverage and view for all angles for decision support. Generally, these

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reports are being widely used for technological developments and project

implementations by our clients.

We have the largest array of 1500+ Project Feasibility report titles without

considering granular sub categories. The titles set are exhaustive and designed

to meet all requirements of Users in respective domains.




findings and make confident statements. Data verification is done with variety

of analytic techniques.





There are independent points of view from our experienced team as well in the

reports.

Data Centre

―Data centre‖ provides interactive data to clients. This is a process of eliciting

exciting knowledge from data repositories. This concept enables clients to

access and use any data they are looking for to meet their information needs.

The interface is very user friendly and offers users to search exactly what they

are looking for and download that piece of information. This acts as a

repository for all data, compiled in one place in a user friendly manner. There

are demonstrations available in our FAQ section to guide you more.

All major Industry categories are covered in the Product and enables users a

quick snapshot for ready usage as per their custom needs.

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Computers don‘t understand abstract concepts at all times. Interactive mining

techniques aim to alleviate problems by involving the user in the mining

process in computers, so that the end user's understanding of abstract semantic

concepts and domain knowledge can guide the detection process, resulting in

accelerated mining with superior results.

Interactive data pulling allows the user and the data mining algorithms to

interact with one another. Regularly, the data is visualized helping the user to

understand the patterns better and also allows the user, and not just the mining

tool's discovery engine, to find out some of the patterns. As the consumer is

mining the data, he gains more knowledge about the data and will be able to

make more appropriate representations and methods.

Different fields of operation

PRODUCT AREAS

Technology (IT / IT’es / Telecom)

ResearchNData aspires to enable its clients operating in the IT/ITeS/Telecom fields,

offering in-depth Market Intelligence on products, solutions, applications, appliances

and services to mitigate the challenges of these hugely dynamic markets.

The key areas of our research are Industry Reports (Knowledge Centre), Company

reports (Company Capsule), Project feasibility reports (Project Mart), Data centre etc.

“Knowledge Centre” covers multiple industry segments with large number of sub

titles in each section. Few major segments are listed below....

Computing products

Packaged software

IT Services

Enterprise mobility solutions

LOB/Industry specific solutions

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Telecom sector

Mobility

BPO/KPO/ITeS

IT Solutions (e.g. security, storage, ERP etc)

Rural IT

Printers & Peripherals

Digital animation and gaming

Networking equipment & services

New age technologies & solutions (like 3G, Cloud, UC etc)

City opportunity reports

Country overall opportunity reports

Partner/alliance reports

IT in consumer segment

Opportunity and potential in SME sector

“Company Capsule” covers company profiles of present leaders and aspiring leaders

in their respective fields. The information areas include performance metrics,

financial analysis, SWOT, demographics, insights and takeaways.

We are covering all leading IT Vendor's profiles and promising new entrants.

"Project Mart" covers feasibility reports for project areas like-

Accounting/ Legal Services Outsourcing

BPO

Computer peripherals

Computing products

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KPO

Networking equipments

“Data centre” provides interactive data to clients. This is a process of eliciting

exciting knowledge from data repositories.

Sector

Information technology and the hardware and software associated with the IT

industry are an integral part of the global business industry. The IT industry is

knowledge-based. The IT industry helps many other sectors in the growth process of

the economy including the services and manufacturing sectors. The IT industry can

serve as a medium of e-governance, as it assures easy accessibility to information.

The use of information technology in the service sector improves operational

efficiency and adds to transparency.

This industry has become one of the most robust industries in the world. IT has an

increased productivity and therefore is a key driver of global economic growth.

Economies of scale and insatiable demand from both consumers and enterprises

characterize this rapidly growing sector. Both software development and the hardware

involved in the IT industry include everything from computer systems, to the design,

implementation, study and development of IT and management systems. Due to its

easy accessibility and the wide range of IT products available, the demand for IT

services has increased substantially over the years. The sector has emerged as a major

global source of both growth and employment.

Telecommunications industry deals with the activities and services of electronic

systems for transmitting messages through cables, telephone, radio or television. Few

major factors responsible for the growth of telecommunications industry are use of

modern technology and market competition. One of the products of modern

technologies is optical fibers, which are being used as a medium of data transmission

instead of using coaxial or twisted pair cables. Use of communication satellites makes

this industry a booming one. The use of mobile network has a crucial role behind the

growth of an improved telecommunications industry.

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Introduction of advanced technologies make the telecommunications industry a very

competitive one and business growth has been tremendous over the years.

Finance

ResearchNData aspires to enable its clients operating in and gaining from the

financial services space, offering in-depth Market Insights & Intelligence on products,

solutions, laws, regulations and services to mitigate the challenges of these highly

significant and dynamic markets.





Asset financing

Asset management

Banking Services

Cards (ATM/ Debit/ Credit/ Pre paid)

Equity trading

Financial service outsourcing (CMS, Collection, Claim settlement)

Foreign Exchange

Insurance products

Life & pension

Loan products

Micro financing

Project audit

Regulations in industry

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Rural banking

Securities broking

Tax consultants

Wealth Management



financial analysis, SWOT, demographics, insights and take aways.

"Project Mart" covers feasibility reports for project areas like

Banks Co-operative

Equity trading

Financial products broking

Financial service outsourcing (CMS, Collection, Claim settlement)

Foreign Exchange

Micro financing

Retirement & pension products

Smart Cards

Tax consultants



Sector

Financial services refer to services provided by the finance industry. The finance

industry encompasses a broad range of organizations that deal with the management

of money. There are some government sponsored enterprises included in the sector as

well. The financial industry or financial services industry includes a wide range of

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companies and institutions involved with money, including businesses providing

money management, lending, investing, insuring and securities issuance and trading

services. The following institutions are a part of the financial industry: Banks, Credit

card issuers, Insurance companies, Investment bankers, Securities traders, Financial

planners & Security exchanges.

Retail

ResearchNData aspires to enable its clients operating in and gaining from the Retail

business space, offering in-depth Market Insights & Intelligence on products,

solutions, laws, regulations and services to mitigate the challenges of these highly

significant and dynamic markets.





Apparel market

Clothing

Cross broader retailing

Departmental store retailing

Direct selling

Durable retailing

Functional differentiation in retail presentation

Hyper-marts

Luxury retailing

Multi-brands showroom retailing

Online shopping

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Perishable products retailing

Pharmacy

Retailing

Single brand outlets

Shopping malls

Store design and interiors

Television shopping



financial analysis, SWOT, demographics, insights and takeaways.

"Project Mart" covers feasibility reports for project areas like

Apparel brand

Hyper marts

Jewellery retail

Multi brand retail store

Online shopping channel

Pharmacy

Single brand retail store

Shopping mall

Tele shopping channel

Petroleum retailing



45 | P a g e

SECTOR

Retailing consists of the sale of goods or merchandise from a very fixed location, such

as a department store, boutique or kiosk, or by mail, in small or individual lots for

direct consumption by the purchaser. Retailing may include subordinated services,

such as delivery; Purchasers may be individuals or businesses. In commerce, a

"retailer" buys goods or products in large quantities from manufacturers or importers,

either directly or through a wholesaler, and then sells smaller quantities to the end-

user. Retailers are at the end of the supply chain. Manufacturing marketers see the

process of retailing as a necessary part of their overall distribution strategy. Shops

may be on residential streets, shopping streets with few or no houses or in a shopping

mall. Online retailing, a type of electronic commerce used for business-to-consumer

(B2C) transactions and mail order, are forms of non-shop retailing.

The pricing technique used by most retailers is cost-plus pricing. This involves adding

a markup amount (or percentage) to the retailer's cost. Another common technique is

suggested retail pricing. This simply involves charging the amount suggested by the

manufacturer and usually printed on the product by the manufacturer.

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CHAPTER 4:

RESEARCH METHODOLOGY

Statement of the problem: The project is ―Behavioral Study of investment

Scenario‖ i.e. investment options available and knowing the customer Preferences and

knowledge about these plans‘.

The purpose of the project is to know about the investment options and how customer

prefers these plans.

Scope of the study:

To identify the investment options in India.

Perception of different segments of customers towards various investment

products.

Usage details, triggers to buy the products, identify any existing need gaps,

etc.

The process of investment.

Identify the most popular investment options.

Objective of the study:

To know whether they have good knowledge of these plans.

To know which plan is suitable for them to get maximum return.

Analyzing their way of investments in these plans.

Analyzing the inclination of SEC (social economic class) towards the

investments.

To know about the relationship between age and investment of the people.

Methodology used:

Sample plan:

Sampling size: - 60

Sample area: - Bangalore

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Exploratory and descriptive research

The research is primarily both exploratory and descriptive in nature. The sources of

information are both primary and secondary. The secondary data has been taken by

referring to various magazines, newspapers, internal sources and internet to get the

figures required for the research purposes. The objective of the exploratory research is

to gain insights and ideas. The objective of the descriptive research study is typically

concerned with determining the frequency with which something occurs. A well

structured questionnaire was prepared for the primary research and to collect the

responses of the target population.

Tools for data collection:

1. Primary data: Designing the questionnaire to know the customer preference

towards the investment plans. For e.g.

a) Their preference acc. to their requirement and their age.

b) Do they look for fixed or variable returns?

c) Do they invest for?

I. Capital appreciation

II. Safe and quite return

Primary research on customers

Behavioral mechanism

Need of investment

Options considered

Decision making process

Factors influencing decision

Perception towards different options

Triggers for investment

Existing need gaps if any

Awareness on returns plan

Payment options (Yearly/half yearly/monthly)

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2. Secondary data: knowledge about these plans ,their rate of interest, minimum

and maximum balance , maturity periods and their way of marketing through

Private ,PSU bank, co-operative bank and post office. In this I will take help

of internet, factsheets of company, documents and pamphlets provided.

Limitations of the study:

1. Lack of time- Due to limited time it is not possible to make depth study of

these plans and therefore sample size is also small.

2. Investors are reluctant to give the information.

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CHAPTER 5

ANALYSIS AND INTERPRETATION

1. Age group and no. of respondents.

Age No. of respondents

22-26 31

26-30 17

30-34 2

34-38 2

38-42 3

42-46 2

46-50 3

INTERPRETATION:

Maximum respondents in this survey are between the age group of 22-26 and

they contribute a huge amount to the investment industry.

Respondents between the age group of 22-26 are 52%.

28% respondents are between the age group of 26-30.

In this survey very less respondents are above the age of 30.

52%

28%

4% 3%

5%

3%

5%

NO.OF RESPONDENTS AND THEIR AGE

22-26 26-30 30-34 34-38 38-42 42-46 46-50

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ANALYSIS:

According to this survey young respondents are more inclined towards the

investment. Age group between 22-26 and 26-30 invest the maximum and it is

because of the fact that they are more aware of these investment plans.

2. Income wise investment per year.

Income No. of people

Less than 1 lakh 2

1-2lakh 11

2.1-5lakh 37

5.1-10lakh 10

More than 10lakh 0

3% 18%

62%

17%

No. of people

Less than 1 lakh 1-2lakh 2.1-5lakh 5.1-10lakh

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INTERPRETATION:

Maximum no. of people who invest is from category of Rs.2.1-5 lakh i.e., 62%

of the total respondents have annual income between RS. 2.1-5 lakh.

17% of respondents belong to income group of Rs.1-2 lakh these invest Rs.

10-20 thousand per year and 18% of respondents are from annual income

between Rs. 5.1-10 lakh these people are less in no. but they invest more

amount per year as compared to others.

ANALYSIS:

Respondents having higher income invest more amount per year as compare to

those whose annual income is less.

Higher the income more will be the investment.

3. To whom people consult before investing.

No consulting 4

Financial agent 25

Family 16

Friends 10

Colleagues 5

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INTERPRETATION:

Maximum people consult financial agent before investing in any plan.

According to this survey 42% of respondents consult agent. They do not

consult only a single person but instead they consult their family, friends, and

colleagues in addition to agent.

Second comes the family. Acc. to this survey 27% of respondents consult their

family. People like to consult their family before investing anywhere.

While taking investment decision 8% people refer their colleagues also.

There are some people who don‘t consult before investing and these are those

who had full knowledge or are advisors.

ANALYSIS:

From the above data we can say that the respondents are more dependent on

financial agents for the investment decision.

They consult their family, friends and colleagues also but dependence on agent

is more this is may be because they get more expert views from the agents.

No consulting 6%

Financial agent 42%

Family 27%

Friends 17%

Colleagues 8%

Respondents consultation

53 | P a g e

4. Type of investment people prefer.

Fixed 17

Variable 14

Both 29

INTERPRETATION: 49% People prefer to invest in plans where there are both types of returns i.e.

fixed and variable.

Besides both 28% people go for fixed returns instead of variable returns and

therefore they invest more in insurance and fixed deposit.

Whereas 23% people prefer to go for variable returns and these people like to

invest either in share or other plans.

ANALYSIS:

As most of the respondents are young and they want to invest in plans where

they can get the maximum returns so they invest more in plans where they will

get both returns instead of fixed returns.

Some respondents don‘t want to take risk and therefore they invest in plans

there they can get fixed returns.

28%

23%

49%

RETURNS PREFERED

Fixed Variable Both

54 | P a g e

5. Objective of their investment.

Capital appreciation 21

Source of income 14

Retirement planning 7

Wealth preservation 12

Education funding 3

Others 3

INTERPRETATION:

Main objective of most of the people who invest in these plans is to capital

appreciation. Out of 60 people 21 people invest to fulfill this objective i.e.

35% of total respondents.

Investment is also like a source of income for 23% of respondents.

Wealth preservation is also one of the objectives of these investors. And these

are 20%.

35%

23%

12%

20%

5%

5%

OBJECTIVE OF INVESTMENT

Capital appreciation Source of income Retirement planning

Wealth preservation Education funding Others

55 | P a g e

As this survey include the investors mainly between the age group of 22-30yrs

so retirement planning objective is of very less people. Only 12% invest for

this objective.

Few people invest for their further education.

ANALYSIS:

Respondents invest to increase their capital or otherwise they treat invest as

one of the source of their income.

As more respondents are of age group of 22-30 therefore retirement planning

objective is also less. This income group treat invest as a more a source of

investment.

6. Plan in which they invest.

Investment plans No. of respondent invest

Kisan vikas patra 1

PPF 6

NSC 4

Fixed deposit 11

Post office saving account 3

Recurring deposit scheme 4

Systematic investment plan 13

Mutual funds 13

Shares 11

Insurance 25

Others 3

56 | P a g e

INTERPRETATION:

Maximum investment comes from the Insurance. Insurance is one of the safe

investments and therefore maximum people like to invest more in insurance.

The risk factor is also very less in insurance. All people whose income range

in between Rs.5.1-10 lakh invest in insurance.25 respondents out of 60 invest

in insurance.

Then comes the Mutual funds and the SIP. People who are willing to take

moderate risk like to invest in mutual funds. And people who like to get quick

and good returns they invest in SIP.

Respondents take Fixed deposit as safe investment and therefore who don‘t

want to take risk they invest in FD.

Respondents who invest in shares are little less because these respondents

don‘t want to take risk and want secure returns.

0

5

10

15

20

25

Kis

an v

ikas

pat

ra

PP

F

NSC

Fixe

d d

ep

osi

t

Po

st o

ffic

e sa

vin

g ac

cou

nt

Re

curr

ing

dep

osi

t sc

hem

e

Syst

emat

ic in

vest

men

t p

lan

Mu

tual

fu

nd

s

Shar

es

Insu

ran

ce

Oth

ers

NO OF RESPONDENTS

INVESTMENT PLANS

INVESTMENT PREFERED

No. of respondent invest

57 | P a g e

Respondent don‘t invest in Kisan vikas patra because they prefer shot term

returns and it is a long term investment.

Few respondents like to invest in the NSE, post office saving scheme and

recurring deposit.

Others include the respondents who invest in ULIP.

ANALYSIS:

From the above data we can say that the respondents are more inclined

towards investment in insurance and this because of the multiple reasons. First

one is because of more awareness about this plan and second is because of the

secure and safe returns.

FD and Shares are equally preferred because of two different reasons.FD are

preferred because of safer investment plan and Shares are preferred because of

higher returns.

Respondents invest in Mutual funds and SIP because of they don‘t want to

take risk and these both are safe investments.

7. From where the respondents get knowledge about these plans.

Newspaper 8

Agents 27

Adverts in T.V and radio 9

Word of mouth 16

13%

45% 15%

27%

KNOWLEDGE ABOUT PLANS

Newspaper Agents Adverts in T.V and radio Word of mouth

58 | P a g e

INTERPRETATION:

45% of total respondents mainly got knowledge about these plans from the

Agents and therefore they consult them only before investing.

Word of mouth is also a very common source of getting knowledge about

these plans. These are 27% of total respondents. Respondents come to know

about the plans someone investing in their family, colleagues and friends.

Newspaper and adverts in T.V and radio are also an important source of

communication about these plans to the respondents.

ANALYSIS:

From the above data it can be analyzed that the respondent‘s main source of

information about these investment plans is from financial agents. Financial

agents are playing a main role in educating the people about the different

investment plans.

8. Amount to invest over next year.

0-5% 15

5-10% 25

10-15% 13

Any other 7

25%

41%

22%

12%

PORTFOLIO TO INVEST OVER NEXT YEAR

0-5% 5-10% 10-15% Any other

59 | P a g e

INTERPRETATION:

41% of respondents like to invest 5-10% in the coming year because of the

good returns in last year they had. These respondents are mainly in the income

bracket of Rs.2.1-5 lakh.

Any other are the respondents who like to invest more than the 15% next year

because of their confidence level in investment and good returns they had in

last few years. And these are 12%.

22% of respondents like to invest 10-15%.These are with in the income

bracket of Rs.5.1-10 lakh are more inclined to invest 10-15% over next year.

Respondents who like to invest 0-5% over the next year are 25% and these lies

between annul income of Rs.1-2 lakh and less than Rs.1 lakh.

ANALYSIS:

Respondents are satisfied with their investment returns and therefore 41% of

them want to invest 5-10% next year and 22% wants to invest more than of

that.

Amount to invest in the next year also changes with the change in the income

of the people.

9. Scenario they prefer.

Secure and steady income 6% 19

Fluctuate return avg. 8% with risk 15

Steady income 8% but have to use

principal amount in obligation

24

Total return 12% for five years but

income fluctuate

2

60 | P a g e

INTERPRETATION:

40% of respondents prefer a scenario where they can get steadier income. And

for which they are ready to take some risk also.

32% of respondents prefer secure and less steady income. These respondents

invest in insurance and fixed deposit.

Respondents who are ready to take risk prefer scenario where they will get

fluctuate return but the average returns are more.25% of respondents prefer

this scenario.

Fluctuate income and steady incomes are equally preferred.

ANALYSIS:

Respondents prefer either secure returns or steady income. They are

willing to invest more and take risk if the returns they will get will be

more.

32%

25%

40%

3%

INVESTMENT SCENARIO

Secure and steady income 6%

Fluctuate return avg. 8% with risk

Steady income 8% but have to use principal amount in obligation

Total return 12% for five years but income fluctuate

61 | P a g e

10. Risk taker.

Very willing 8

Somewhat 33

Only willing to take moderate risk 13

Not willing to take risk 6

INTERPRETATION:

55% of respondents are willing to take some what risk. Most of the

respondents like to take risk but not very much willing to take risk. And

these respondents prefer either secure income or steady income.

There are some respondents who like taking risk and they are very willing

to take risk and these are 13%.

22% of respondents are willing to take risk but very moderate.

Very few respondents are not willing to take risk. It is because of less

knowledge about the plans.10% of respondents are not willing to take risk.

13%

55%

22%

10%

RISK TAKER

Very willing Somewhat

Only willing to take moderate risk Not willing to take risk

62 | P a g e

ANALYSIS:

55% of respondents are willing to take somewhat risk and 22% are willing to

take moderate risk from here we can Analyised that the respondents are

willing to take moderate or somewhat risk and they don‘t want to take more

risk.

11. Level of investment confidence.

Level of investment No. of respondents

Experienced and confident 28

Some experienced and confident 15

Limited experienced 13

Not very confident 4

46%

25%

22%

7%

LEVEL OF CONFIDENCE

Experienced and confident Some experienced and confident

Limited experienced Not very confident

63 | P a g e

INTERPRETATION:

46% of the total respondents are experienced and confident. Experienced and

confident respondents are those who invest Rs.20-40 thousand or more than

Rs.40000 a year. And they invest in fixed deposit, PPF, Insurance and SIP.

25% respondents are some experienced and confident. And these are those

respondents who invest Rs.10-20 thousand and more than Rs.20000 in a year

and are more interested to invest in mutual funds.

Limited experienced respondents are 22% and they invest less than Rs.5000 or

in between Rs.10-20 thousand and because of less experience they invest in

Insurance, Fixed deposit, NSC. They want safe returns and not very much

willing to take risk.

Not very confident are 7% and these respondents are new to investment

industry and because of less experience their investment is also less.

ANALYSIS:

Maximum respondents are confident about their investment as they had

experienced it before also. This shows that they are aware of the investment

plans and they know how much will be the return they will be getting and

where they should invest.

12. Money invested per year as per plans.

Money

invested:

Plans:

Less than

5,000

5-10

thousand

10.1-20

thousand

20.1-40

thousand

More than

40,000

Kisan vikas

patra

1

PPF 1 5 1 1

NSC 2 1 1

FD 1 2 7 6 3

64 | P a g e

Post office

saving

account

2 1

Recurring

deposit

account

2 1 1

SIP 5 5 3

Mutual

funds

1 2 6 8 4

Shares 1 1 5 5 8

Insurances 3 3 9 9 13

Others 1 1 1

0

2

4

6

8

10

12

14

NO.OF RESPONDENTS

INVESTMENT PLANS

Less than5,0005-10thousand10.1-20thousand20.1-40thousandMore than40,000

65 | P a g e

INTERPRETATION:

Out of 50 respondents only one respondent invest in the Kisan vikas patra.This

is because investment in this is for long term and respondents generally prefer

short term returns.

Few respondents invest in PPF and NSE. In PPF respondents mostly invest

Rs.10-20 thousand of their income per year. In NSC respondents invest less

than Rs.5000 or Rs.5-10 thousand per year.

FD is also an investment where most of the respondents invest. It is a safe

mode of investment and respondents invest different amount as per their

income.

In post office deposit and recurring deposit account very few respondents

invest.

SIP and Mutual fund are two investments which are safe and respondents

invest maximum in these plans. In SIP respondents invest Rs.5-40 thousand

out of their income per year depending upon their income. And in Mutual

funds respondents invest less than Rs.5000 to more than Rs.40000 in a year.

More respondents investing in SIP and Mutual funds because these people

invest as per the advice of financial agent and these agents suggest them to

invest in these plans.

Investment in shares is little risky so investment in shares is less as compare to

mutual funds but returns are higher. But the respondents who invest in shares

they invest mostly more than Rs.40000 per year.

Insurance is the investment plan where there is maximum investment. One

reason for this is that it is the safest mode of investment and other is that in

most of the offices it‘s compulsory to have insurance.

Insurance industry is growing very fast in our country and because of the fixed

amount the respondents will get after a time period they like to invest in

Insurance.

ANALYSIS:

It can be concluded that the respondents invest more in the Insurance, Mutual

funds, FD and SIP plans. This is because of the safe returns and more

66 | P a g e

knowledge about these plans. In insurance respondents invest more amount as

compare to other options.

13. Investment vs. Income

Income

Investment

Less than

1 lakh

1-2 lakh 2.1-5 lakh 5.1-10

lakh

Total no. of

respondents

Less than

5000

2 2 0 0 4

5-10

thousand

1 5 5 0 11

10.1-20

thousand

0 3 15 0 18

20.1-40

thousand

0 0 12 2 14

More than

4oooo

0 0 5 8 13

Total no. of

respondents

3 10 37 10 60

67 | P a g e

INTERPRETATION:

Income and investment are interlinked. Higher the income more will be the

investment and vice-versa.

Respondents whose income is less than 1 lakh they like to invest less amount

and invest in FD, NSE or Insurance. Where they will can get safe returns.

Respondents who earn more than 1 lakh and up to 5 lakh they invest 5000-

40000 or even more than 40000 depending upon their needs.

Income group between 2.1-5 lakh invest the maximum amount. This is

because this category belongs to middle class and they like to save more

money.

Income group of 5.1-10 lakh like invest more than 40000 a year or 20-40

thousand a year out of their income. As their income is higher they invest

more amount.

ANALYSIS:

Maximum respondents are between the income group of 2.1-5 lakh and they

invest 10-40 thousand per year.

0

2

4

6

8

10

12

14

16

NO. OF RESPONDENTS

AMOUNT INVESTED PER YEAR

INCOME AND INVESTMENT

Less than 1 lakh

1-2 lakh

2.1-5 lakh

5.1-10 lakh

68 | P a g e

Respondents who are in income group of 5.1-10 lakh they invest usually more

than 40,000 a year.

14. Investment posture vs. inflation.

Inflation

investment

2-4% 3-5% 4-6% Any 0ther Total no of

respondents

Defensive 0 7 2 0 9

Conservative 3 7 1 1 12

Moderate 1 17 9 1 28

Aggressive 1 4 6 0 11

Total no. of

respondents

5 35 18 2 60

69 | P a g e

INTERPRETATION: Investment and inflation rate expectation are also related to each other.

Maximum respondents feel that the inflation rate will be 3-5% in next year.

Most of the respondent‘s investment posture is moderate.

Defensive and conservative respondents expect inflation rate to be 2-4%.

ANALYSIS:

According to maximum respondents the inflation rate will be 3-5% in next

year and accordingly their investment in next year will depend on that. If

inflation rate will be higher their invest will also be higher.

0

2

4

6

8

10

12

14

16

18

2-4% 3-5% 4-6% Anyother

NO. OF RESPONDENTS

INFLATION RATE EXPECTATION

Defensive

Conservative

Moderate

Aggressive

70 | P a g e

15. Age and Investment

Age

Investment

Plans

22-26 26-30 30-34 34-38 38-42 42-46 46-50

Shares 7 3 0 1 0 1 4

Mutual

fund

8 6 0 1 0 1 3

FD 8 1 0 0 0 2 3

PPF 7 1 1 0 1 0 0

ULIP 1 2 0 0 0 0 0

Insurance 16 4 2 0 1 2 5

NSC 3 0 1 0 0 0 0

SIP 7 6 0 0 0 0 0

Recurring

deposit

account

2 1 1 0 0 0 0

Post office

deposit

account

3 0 2 0 0 0 0

Kisan

vikas patra

1 0 0 0 0 0 0

71 | P a g e

INTERPRETATION:

Maximum respondents are between the age group of 22-26.

The age group of 22-26 invests almost in all investment plans.

Age group of 46-50 invests more in plans where they can get safe and secure

returns.

They invest mostly in FD, Insurance and Mutual fund.

There is only one respondent out of 60 who invest in Kisan vikas patra i.e.

from the age group of 22-26.

ANALYSIS:

Investment is also related to age. Young respondents are more inclined

towards investment in all the options available in market whereas respondents

above the age group of 40 invest in only few plans and that‘s too mostly in

pals which will give secure returns.

72 | P a g e

CHAPTER 6

FINDINDS, RECOMMENDATIONS AND CONCLUSION

FINDINGS:-

People having annual income between Rs.2-5 lakh are mostly interested in

schemes which are of less maturity period. They want fast return so that they

can reinvest.

People prefer FD‘s, Insurance more, because they take them as the safe side

of Investment.

People with income <Rs.1 lakh prefer to invest in post office savings like

recurring deposits and LIC.

People with income Rs.2-5 lakh prefer to invest in FD‘s, SIP and somewhat

in Shares. People with income >5 lakh prefer to invest in stock, mutual fund,

NSC and PPF.

Word of mouth and agents play important role in getting knowledge about

small saving plans.

People mostly consult agents and friends before investing.

All people are aware of these saving plans i.e. there is good knowledge of

these plans.

People likely to invest 30-40% of their income.

People having income up to Rs. 1.5 Lakh are interested in fixed return.

People having income >Rs.1.5 lakh are interested in either variable return or

in both (fixed and variable) returns.

For their future reinvestment people are willing to invest acc. to their present

situation. Their present income plays a crucial role for their future investment.

If their income is same than they want to continue with that only, otherwise

they want their investment to extended.

People are taking interest in investment in ULIP policies

73 | P a g e

RECOMMENDATIONS:-

On the basis of the survey done there are some suggestions from my side which can

help the investment industry and customers. Suggestions are as follows:

FOR COMPANIES:-

Agents are the main intermediaries in the process of investment so if a

company wants that customers should invest more with their company they

should trained the agents properly.

Maximum investment is from Rs.2.1-5 lakh and above Rs.5 lakh income

group of people so focused should be made to attract them more so that more

investment can be made in future.

Customers working in private sector are not much aware of plans like post

office saving account and recurring deposit account. So these people should

be made aware of these small saving plans so that they can invest their.

More and more young people should be attracted because they are more

excited to invest and they invest almost in all plans and they are ready to take

risk also because they at this time they have very less responsibilities.

Companies should come out with more attractive investment plans.

Should focus more on promotion.

FOR CUSTOMERS:-

Instead of just going as per the recommendation of financial agent the

customer should himself check the investment plans and should invest only in

that plan which will match his/her requirements.

Customer should provide more education about the investment plans.

Less customers are investing in the shares because of risk factor in fact

investment in shares can fetch more returns. So customers should gain

knowledge about share market and should invest in stock exchange.

Customers should be educated regularly regarding new polices and plans of

investment and also regarding other related information.

74 | P a g e

CONCLUSION:-

These investment options are not just like an investment only but a high amount can

be made. These are safe and right type of investment. The plans which are described

state that how these investment plans are useful to the developing country like India.

Addition of rupee to rupee makes a huge amount and it is very useful to the country‘s

economy.

After losing their investments in stock markets in the past, small investors prefer risk-

free small savings schemes, which saw

27.33 per cent surge in collection of money. Customer prefers small savings plan

because the return is fixed and there is no risk.

Finally the reports concludes that how customer invest taking every aspect of current

scenario into consideration. In this every type of saving plans has been taken into

account. Through this analysis a customer can understand where to invest the money

looking current scenario. Some of the main points are listed below:

People are more inclined to invest in the insurance and mutual funds instead

of shares.

Majority of the people wants higher return in short period of time that is why

they prefer to invest in SIP and mutual funds rather than any other form of

investments.

People between ages 30-40 think about long term returns as well as higher

return in short period of time that is why they invest in stock market for short

period of time and in insurance for long term return.

People between ages 22-26 don‘t have much money to invest and they can‘t

take higher risk, so they invest in mutual funds which are of moderate risk.

People between ages 26-30 wants to be financially stable that is why they

don‘t like to take risk at all. So, they invest in the bank‘s fixed deposit scheme

which has almost no risk and lower return.

75 | P a g e

LIMITATIONS:-

Despite of trying my level best, there are still some limitation which I think remains

there to draw fruitful conclusion. There were some practical problems which come

across and could not be properly dealt.

It is based on the data collected through internet and response got through

questionnaires.

Confidential information is not revealed by the respondents and it is difficult

to judge the behavior of investors just from analyzing the questionnaires.

Time consistency.

Respondents are also of young age and above 40 age people are very less so

the results are not that much accurate.

76 | P a g e

BIBLIOGRAPHY:-

1. INTERNET:-

www.buzzle.com

www.wikipedia.com

www.investorwords.com

www.economywatch.com

www.ilikeinvesting.com

www.mapsofindia.com

www.moneycontrol.com

www.timsesofindia.com

2. SEARCH ENGINE:-

www.google.com

3. OTHER SOURCES:

Magazines

Investment articles

Market survey

http://www.google.com/

77 | P a g e

APPENDICES:-

QUESTIONNAIRE

Name of the respondent:: Sex: M/F Age:

Company Name: Designation

Address:

Mob No. E-mail PIN

1) Which of the following best describes your profession?

Self employed 1

Salaried – Govt. service 2

Salaried – Private job 3

Others (pls specify) 4

2) In which range does your Annual income lie?

Less than a lakh 1

1 to 2 lakhs 2

2.1 to 5 lakh 3

5.1 to 10 lakh 4

More than 10 lakh 5

3) Have you done any kind of financial investments?

Yes 1

No 2

78 | P a g e

4) How much do you invest from your income?

Less than Rs.5 thousand/year 1

Rs.5 to 10 thousand/year 2

Rs.10.1 to 20 thousand/year 3

Rs.20.1 to 40 thousand/year 4

More than Rs.40 thousand/year 5

5) Whom do you consult before investing?

No consulting with anyone 1

Financial agents 2

Family 3

Friends 4

Colleagues 5


6) What type of investment do you do?

Fixed return 1

Variable return 2

Both 3

79 | P a g e

7) What is the objective of your investment?

Capital appreciation 1

Source of income 2

Retirement planning 3

Wealth preservation 4

Education funding 5

Others 6

8) Which of the following plans have you ever invested in?

9) Could you please rank the following investments based on your preference,

Rank No. 1 being the most preferred?

Q8 Q9

Kisan Vikas Patra 1

Public Provident Fund (PPF) 2

National Savings Certificate 3

Fixed deposits 4

Post office savings account 5

Post office monthly income scheme 6

Post office term deposit 7

Senior citizen saving scheme 8

Recurring deposit account 9

80 | P a g e

RBI bonds 10

Pay roll saving scheme 11

Systematic Investment plan 12

Mutual funds 13

Shares 14

Insurance 15


10) From where did you get knowledge about these plans?

News paper 1

Agents 2

Adverts in TV and radio 3

Word of mouth 4


11) As I read out few phrases, which one best describes your level of investment

confidence?

Experienced and confident 1

Some experience and confidence 2

Limited experience 3

Not very confident 4

81 | P a g e

12) What is the total portfolio you expect to invest over the next year?

0-5% 1

5=10% 2

10-15% 3

Any other (pls specify) 4

13) What is the total return your portfolio to achieve on average?

10% 1

15% 2

20% 3

Any other( pls specify) 4

14) What rate of return have you achieved over the last three to five years?

0-15% 1

15-20% 2

Any other(pls specify) 3

Not invested 4

82 | P a g e

15) How much return are you expecting from your portfolio of investments in the

coming financial year?

15-25% 1

25-35% 2

35-45% 3

Any other (pls specify) 4

16) What do you believe will be the average rate of inflation over the next five

years?

2-4% 1

3-5% 2

4-6% 3

Any other( pls specify) 4

17) How would you describe your investment posture?

Defensive 1

Conservative 2

Moderate 3

Aggressive 4

83 | P a g e

18) What is the poorest level of total return you expect you could live with in any

one year if the markets were not performing well?

7% 1

3% 2

0% 3

-10% 4

-20% 5


19) Which of the following scenarios would you prefer?

A secure and steady income guaranteed at a rate of 6% with not

investment risk

1

A fluctuating income averaging 8% representing conservative

investment risk.

2

A steady income at 8% with an unsteady rate of return on your total

portfolio—and the possibility that you might have to use principal

on occasion to meet the income obligation—but total return averages

of 10% over a five-year period.

3

A total return averaging 12% over a five-year period but income that

fluctuates from time to time

4

84 | P a g e

20) How much of a risk taker are you?

Very willing to take risk in return for an opportunity for greater

reward

1

Somewhat willing to take risk and willing to accept a more modest

level of reward

2

Only willing to take a very moderate level of risk and will accept a

lower level of performance

3

I am not willing to take any risk with my capital and will accept a low

level of return

4

85 | P a g e

INDEX

TABLE NAME PAGE NO.

Age and no. or respondents 49

Income wise investment per year 50

Whom people consult before investing 51

Type of investment people prefer 53

Objective of investment 54

Plan in which they invest 56

From where they get knowledge about

these plans

57

Portfolio to invest over next year 58

Scenario they prefer 60

Risk taker 61

Level of investment confidence 62

Money invested per year as per plan 64

Investment vs. income 66

Investment posture vs. inflation 68

Age and investment 70

ankita - a behavioral study of investment scenario in india

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