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MANAGEMENT THESIS – II
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1 MANAGEMENT THESIS - II
Who is investor?
An investor is a person or entity that purchases assets with the objective of receiving
a financial return. The assets an investor may buy range widely, but include stocks,
bonds, real estate, commodities, and collectibles (e.g. art). The portfolio of an investor
commonly includes a variety of assets that balance the rewards and risks of each
investment. An investor is distinguished from a speculator, who seeks to make quick,
large gains from price increases on risky assets. Generally, an investor has a longer time
horizon for achieving a return, which may include regular cash payments from the
income the asset generates, capital appreciation from the rise in the asset price, or both. A
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What is recession?
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The purpose of the analysis is to determine the investment behavior of investors and investment
preferences for the same. Investors perception will provide a way to accurately measure how the
investors think about the products and services provided by the company. Today’s trying
economic conditions have forced difficult decisions for companies. Most are making conservative
decisions that reflect a survival mode in the business operations. During these difficult times,
understanding what investors on an ongoing basis is critical for survival. Executives need a 3rd
party understanding on where investor’s loyalties stand. More than ever management needs
ongoing feedback from the investors, partners and employees in order to continue to innovate and
grow. The main objective of the project is to find out the needs of the current and future investors.
For this analysis, customer perception and awareness level will be measured in important areas
such as:
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This analysis will help to strengthen investor intimacy. This analysis will also throw light on
various investment avenues available in India that will help in many ways like,
Ø It will help to understand the expectations of the investors about their company from the
perspective of financial performance and corporate social responsibility.
Ø It will provide fresh insights which can help their business continue to flourish.
Ø The expectations of different types of investors regarding particular service requirements
can be identified.
Ø The common problem areas faced by the investors can be understood.
Ø It also enhances new services initiatives.
Ø This study will help in gaining a better understanding of what an investor looks for in an
investment option.
Ø It can be used by the financial sector in designing better financial instrument customized
to suit the needs of the investor.
Ø It will also help the agents and brokers in marketing the existing financial instruments.
Ø It will provide knowledge to the investors about the various financial services provided
by the company to their investors.
Ø It will also help the company to understand what is the requirement and expectations of
different categories of investors.
This analysis will be originated in order to empower the investors with detailed research on
various investments avenues available in India. The impact of different stages of economic cycle
such as depression, recession, recovery and inflation, on the perception and behavior of the
investors. The awareness lever of the investors about the various investment options and what is
the perception of the investors with regard to the investments they want to make.
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This analysis is based upon investors’ behavior for investment preferences during normal time
vis-à-vis recessionary period. This analysis would be focusing on the information from the
investors about their knowledge, perception and behavior on different financial products. The
various limitations of the study are:
Ø The total number of financial instruments in the market is so large that it needs a lot of
resources to analyze them all. There are various companies providing these financial
instruments to the public. Handling and analyzing such a varied and diversified data
needs a lot of time and resources.
Ø Reluctance of the people to provide complete information about them can affect the
validity of the responses.
Ø Due to time and cost constraint, study will be conducted in only selected areas of
vadodara.
Ø The lack of knowledge of customers about the financial instruments can be a major
limitation.
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Sampling technique
Initially, a rough draft will be prepared keeping in mind the objective of the research. A pilot
study will be undertaken in order to know the accuracy of the questionnaire. The final
questionnaire will be arrived at only after certain important changes are incorporated.
Convenience sampling technique will be used for collecting the data from different investors. The
investors are selected by the convenience sampling method. The selection of units from the
population based on their easy availability and accessibility to the researcher is known as
convenience sampling. Convenience sampling is at its best in surveys dealing with an
exploratory purpose for generating ideas and hypothesis.
Sampling unit:
The respondents who will be asked to fill out the questionnaires are the sampling units. These
comprise of employees of MNC’s, government employees, self employed and other investors.
Sampling size:
The sample size will be restricted to only 50, which comprised of mainly people from different
regions of vadodara due to time constraints.
Sampling area:
Sampling design:
Data will be presented with the help of bar graph, pie charts, line graphs etc.
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