A STUDY ON INVESTOR TOWARDS INVESTMENT IN PUNE

Projects Report Submitted for partial fulfillment of requirement For the award of Post Graduate Diploma in Financial management

By SANJAY KUMAR PATIDAR PRN No. 1000002257

Under the Guidance of Mr. N. Hariharan Professor & Head Department of Finance AMPLIFY BVU Pune 411043 April 2012

ACKNOWLEDGEMENT
I am deeply thankful to all the persons who had given their helping hands to me in making this project report successful. In the beginning I would like to give my hearty thanks to Mr. N.Hariharan, Professor and Head Department of Finance,Amplify-BVU, Pune for giving me the opportunity to study the course and go for this successful training.

Then I would like to express my sincere thanks to Mrs. Aruna Peshave (Coordinator) who Help me to make Hypothesis and some other work. I am grateful to her for his enthusiasm and willingness for the help after the course of this project. I was always intended for his guidance and support.

I would also like to include my family who gave me support in many ways and boosted my confidence. My friends were very co-operative and motivating to me. I am thankful to all the people who have given their precious time and provided me with requisite data without which this project would not have completed .I also thank them for giving their valuable suggestions during the entire period of research.

SANJAY KUMAR PATIDAR

N.HARIHARAN Professor and Head Department Of Finance Amplify-BVU Pune-411043

CERTIFICATE

This is to the certify that the Project Report Titled A STUDY ON INVESTOR TOWARDS INVESTMENT IN PUNE is an original work done by Mr. Sanjay Kumar Patidar PRN No. 1000002257 of PGDFM 2010-2012 Batch as part of his study.

This report has not been submitted for award of any other Degree/Diploma.

Date: Place: Pune

Supervisor and Guide

LIST OF CONTENTS CHAPTER NO. DESCRIPTIONS Preliminary Page PAGE NO. i-ii

Acknowledgement Certificate 1. Introduction 1.1 Importance 1.2 Objectives 1.3 Scope 1.4 Data Collection 1.5 Hypothesis 1.6 Limitation 1.7 Chapter Scheme

i ii 1-3 1 2 2 2 2 2 3

2.

Review Of Literature

4-40 4-5 5 5-6 6 7 7-8 8-11 11-12

2.1 Stock market 2.2 BSE Online Trading 2.3 Debentures 2.4 Bonds 2.5 Preference shares 2.6 Equity shares 2.7 Government Securities 2.8 Process stage in Investment

2.9 Success in Investment 2.10 Three approaches to succeed an Investor 2.11 Investment an speculation 2.12 Marketability risk 2.13 Factors favorable for Investment 2.14 Investors 2.15 Organization Structure

12-15 15 16-20 20-21 22-25 25-36 36-40

3.

Analysis & Interpretations

41-69

4.

Findings & Suggestions

70-71

4.1 Findings 4.2 Suggestion

70-71 71

Bibliography

72

A-1 A-2 A-3

Questionnaire, Interview Schedule Frequency Table Data Sheet

LIST OF TABLES Table No. 3.1 3.2 3.3. 3.4. 3.5. 3.6. 3.7. DESCRIPTION Preferred to invest your money Preferred age group of investor Preferred best investment option Preferred to kind of investor Preferred to investment pattern Preferred to Investment time duration Preferred to professional advice regarding investment 3.8. 3.9. 3.10. 3.11. 3.12 3.13 3.14 Preferred to take advice Preferred to money in bank and type of bank Preferred to Return on investment Preferred to frequency of investment Preferred to percentage of income of invest Preferred to take investment decision Preferred to next 3-5 years expect your annual income to change 3.15 3.16 Experience in the market Trading preference 44 45 46 47 48 49 50 51 52 53 54 55 56 Page No. 41 42 43

3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28

Factor influencing the investment decision Preferred to risk taking Preferred to taking loss Preferred to annual income Type of investor Funds opinion are performing well Preferred to financial instrument in investment Following planned insured Preferred to purpose behind investment Preferred to various investment avenues Preferred to frequency trading Thinks as the specialty of trading in commodity market

57 58 59 60 61 62 63 64 65 66 67 68 69

3.29

Investment Decision is depending

LIST OF GRAPHS Graph No. 3.1 3.2 3.3. 3.4. 3.5. 3.6. 3.7. DESCRIPTIONS Preferred to invest your money Preferred age group of investor Preferred best investment option Preferred to kind of investor Preferred to investment pattern Preferred to Investment time duration Preferred to professional advice regarding investment 3.8. 3.9. 3.10. 3.11. 3.12 3.13 3.14 Preferred to take advice Preferred to money in bank and type of bank Preferred to Return on investment Preferred to frequency of investment Preferred to percentage of income of invest Preferred to take investment decision Preferred to next 3-5 years expect your annual income to change 3.15 3.16 Experience in the market Trading preference Page No. 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56

3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28

Factor influencing the investment decision Preferred to risk taking Preferred to taking loss Preferred to annual income Type of investor Funds opinion are performing well Preferred to financial instrument in investment Following planned insured Preferred to purpose behind investment Preferred to various investment avenues Preferred to frequency trading Thinks as the specialty of trading in commodity market

57 58 59 60 61 62 63 64 65 66 67 68 69

3.29

Investment Decision is depending

CHAPTER-1

INTRODUCTION

1.1 IMPORTANCE An investment refers to the commitment of funds at present in anticipation of some positive rate of return in future. Today, the spectrum of investment in indeed wide An investment in confronted with array of investment avenues. Among all investment, investment in equity is in best high proportion. This is because the history of stock market is booming and burses overnight millionaires an instant paper. Indian economy is doing indeed well in recent years. The study has been undertaken to analyze the investment pattern of investment community. The main reason behind the study is the factory like income economy condition and the risk covering nature of the Indian investors. Investment is the sacrifice of certain present value for the uncertain future reward it entails arriving at numerous decision such as type, mix, amount, timing, grade etc of investment and disinvestment. Further such decision making has not to be continuous but rational too. Instead of keeping the saving idles you may like to use saving in order to get return on it in the future, which is known as investment. There are various investment avenues such as Equity, Bonds, Insurance, Real estate, Precious objects and bank deposits etc .A portfolio is a combination of different investment assets mixed and matched for the purpose of achieving an investors goals. Days were gone when people only invest their money in Post offices or in Banks and another safely fixed return investment. Today people have several choices for the investment alternatives. Now a day, one of the most emerging choices is to invest in equities shares. To get good return on investment, people are ready to take risks. Law always says that investors get higher return if they take high risk. For high risk there is one avenue to invest and that is Equity Market. Equity share holder is real owner of the company in spite of their priority in getting dividend is comes last. Major Investors are investing in equity market only due to earn high return and hedge the risk by investing their 5%-10% of income in Equity Market. 28% of investors invest in Equity market for the period of 1 to 3 Months and the same proportion of investors are invest for long period more than year. Most of investors have considered Market trend, Price Earnings Ratio, Dividend and Profitability as a most important factor while selecting the Sector and company under the sector.

1.2 OBJECTIVES To study the small savings scheme are designed to provide safe & attractive investment options to the public. To study the Investment pattern of investment. To study the investor adoption. To study the financial instruments of investment. To study the product and services.

1.3 SCOPE This study concentrates on Investor towards investment.

1.4 DATA COLLECTION A total Sample of 75 is concentrated for the study. The sample has been collected for investor towards investment. Both primary and secondary data used for a study.

1.5 Hypothesis Investor is the impact of investment opinion.

1.6 LIMITATIONS OF THE STUDY Time is limiting factor. Opinion given by respondents (If biased) may reflect on the study. Respondents were reluctant to share information.

1.7 CHAPTER SCHEME 1.7.1 Introduction 1.7.2 Review of literature 1.7.3 Analysis & Interpretation 1.7.4 Findings & Suggestions

CHAPTER-2

REVIEW OF LITERATURE

2.1 Stock Market

Stock markets refer to a market place where investors can buy and sell stocks. The price at which each buying and selling transaction takes is determined by the market forces (i.e. demand and supply for a particular stock). A stock market is a public market for the trading of company stock and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately. The size of the world stock market was estimated at about $36.6 trillion USD at the beginning of October 2008. The stock market is one of the most important sources for companies to raise money. This allows businesses to be publicly traded, or raise additional capital for expansion by selling shares of ownership of the company in a public market. In fact, the stock market is often considered the primary indicator of a country's economic strength and development. Rising share prices, for instance, tend to be associated with increased business investment and vice versa. In this way, investing in stock market, the stock exchanges also play importance role. Exchanges also act as the clearinghouse for each transaction, meaning that they collect and deliver the shares, and guarantee payment to the seller of a security. This eliminates the risk to an individual buyer or seller that the counterparty could default on the transaction. So, here we also understand about Stock Exchanges as follows. 2.1.1 Stock market: A stock exchange is an entity which provides "trading" facilities for stock brokers and traders, to trade stocks and other securities. Stock Exchanges are an organized marketplace, either corporation or mutual organization, where members of the organization gather to trade company stocks or other securities. Stock exchanges also provide facilities for the issue and redemption of securities as well as other financial instruments and capital events including the payment of income and dividends. The securities traded on a stock exchange include: shares issued by companies, unit trusts, derivatives, pooled investment products and bonds. To be able to trade a security on a certain stock exchange, it has to be listed there. Usually there is a central location at least for recordkeeping, but trade is less and less linked to such a physical place, as modern markets are electronic networks, which gives them advantages of speed and cost of transactions. Trade on an exchange is by members only. The initial offering of stocks and bonds to investors is by definition done in the primary market and subsequent trading is done in the secondary market.

A stock exchange is often the most important component of a stock market. Supply and demand in stock markets is driven by various factors which, as in all free markets, affect the price of stocks. There is usually no compulsion to issue stock via the stock exchange itself, nor must stock be subsequently traded on the exchange. Such trading is said to be off exchange or over-thecounter. This is the usual way that derivatives and bonds are traded. Increasingly, stock exchanges are part of a global market for securities List of Stock Exchanges in India 1. Bombay Stock Exchange(BSE) 2. National Stock Exchange(NSE) 3. Regional Stock Exchanges (21) There are 21 other regional stock exchanges, which are Ahmedabad,Bangalore, Bhubaneshwar, Calcutta,Cochin,Coimbatore,Delhi,Guwahati,Hyderabad,Jaipur,Ludhiana,MadhyaPradesh, Madras,Magadh,Mangalore,Meerut,OTC Exchange Of India,Pune,Saurashtra Kutch, Uttar Pradesh,Vadodara etc.

2.2 The BSE On-line Trading (BOLT):

BSE On-line Trading (BOLT) facilitates on-line screen based trading in securities. BOLT is currently operating in 25,000 Trader Workstations located across over 359 cities in India.

VARIOUS INVESTMENT AVENUES: 2.3 DEBENTURES: A type of fixed-interest security, issued by companies (as borrowers) in return for medium and long-term investment of funds A debenture is evidence of the borrower's debt to the lender. These are issued by companies and regulated under the SEBI guidelines of June 11, 1992. The following are types of debentures: Convertible debentures Non-Convertible debentures

 Zero coupon convertible notes Zero interest fully convertible debentures Fully convertible debentures with interest Partly convertible debentures.

2.4 BONDS: A bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest (the coupon) and/or to repay the principal at a later date, termed maturity. A bond is a formal contract to repay borrowed money with interest at fixed intervals. International Bond Market is very big and has an estimated size of nearly $47 trillion. The size of the US bond market is the largest in the world. The US bond market's outstanding debt is more than $25 trillion. While the size of Indian dept market is 239.2 (US$ billion) which is 34.5% of GDP as on 2004 -05. Indian development financial institutions like IDBI, ICICI, and IFCI, have been raising capital for their operations by issuing of bonds. These too are available in a large variety. These include: Income bonds Tax-free bonds Capital gains bonds Deep discount bonds Infrastructure bonds Retirement bonds etc.

2.5 PREFERENCE SHARES: Stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights

Preference shareholders do not have voting rights. They generally bear a fixed dividend, payable if the company declares dividends. Preference shares have different features and are accordingly available as: Cumulative and non-cumulative preference shares Redeemable and non-redeemable preference shares Convertible and non-convertible preference shares Preference shares with a combination of the above features.

2.6 EQUITY SHARES:

Equity shares represent proportionate ownership in the company. Investors who own equity shares of a company are entitled to ownership rights, like voting for selection of directors on the Board, share in profits of the company, etc. Investors who own equity shares in a company are called shareholders. They are ordinary shares with no guarantee of dividend. Equity shares gain maximum returns when there are high profits. As a shareholder, the extent of your ownership (your stake) in a company depends on the number of shares you own in relation to the total number of shares available

For example, if you buy 1000 shares of stock in a company that has issued a total of 100,000 shares, you own one per cent of the company.

A shareholder or a beneficial owner can exit from the ownership by selling the shares. An investor can become shareholder/beneficial owner of a company by purchasing shares of the company.

Shareholders are entitled to share profit of the company in the form of "dividend" on "bonus shares", if Board of Directors and majority of the shareholders agree. If a company is wound up for any reason, equity shareholders may receive money from the residual funds after satisfying all other liabilities.

2.7 GOVERNMENT SECURITIES:

Government securities (G-secs) are sovereign securities which are issued by the Reserve Bank of India on behalf of Government of India. The term Government Securities includes: Central Government Securities State Government Securities Treasury bills The Central Government or State Governments issue securities periodically for the purpose of raising loans from the public. There are two types of Government Securities

a. Dated Securities b. Treasury Bills Dated Securities: Dated Securities have a maturity period of more than one year Treasury Bills: Treasury Bills have a maturity period of less than or up to one year.

The Public Debt Office (PDO) of the Reserve Bank of India performs all functions with regard to the issue management, settlement of trade, distribution of interest and redemption. Although only

corporate and institutional investors subscribe to government securities, individual investors are also permitted to subscribe to these securities. An investor has to approach RBI to receive government securities in physical form. Investors can invest in book entry form with Banks and other institutions like NSDL, SHCIL, and NSCCL etc. NSDL facility to buy and hold government securities is convenient because of its reach and depository account opened for other securities can be used for holding government securities. The Public Debt Office (PDO) of the Reserve Bank of India performs all functions with regard to the issue management, settlement of trade, distribution of interest and redemption. Although only corporate and institutional investors subscribe to government securities, individual investors are also permitted to subscribe to these securities. An investor has to approach RBI to receive government securities in physical form. Investors can invest in book entry form with Banks and other institutions like NSDL, SHCIL, and NSCCL etc. NSDL facility to buy and hold government securities is convenient because of its reach and depository account opened for other securities can be used for holding government securities. Return opportunities come from two sources: an expanded universe of securities from which to trade and a wider array of trading strategies implemented without the constraints of regulation common to most traditional products.

Deciding risk profile is synonymous with drawing a risk picture and involves the following steps.

1. Identifying and prioritizing the inherent risks 2. Measuring and scoring inherent risks. 3. Establishing standards for each risk component 4. Evaluating and controlling the quality of managerial controls. 5. Developing risk tolerance levels.

A good risk and return model should-

a. Come up with a measure for risk that is universal b. Specify what types of risks are rewarded and what types are not. c. Standardize risk measures, to enable analysis and comparison. d. Translate the risk measure into an expected return. He opined that a risk measure, to be useful, has to apply to all investments whether stocks or bonds or real estate. He also stated that one of the objectives of measuring risk is to come u p with a n estimate of a n expected return for a n investment. This expected return would help to decide whether the investment is a 'good' or 'bad' one. The implications of risk management in the changed environment a n d the factors constraining the speed of risk management technology up-gradation. He opined that the perception and management of risk is crucial for players a n d regulators in a market oriented economy. Investment managers have started upgrading their risk management practices a n d systems. They have strengthened the internal control systems including internal audit and they are increasingly using equity research of better quality. He observed that risk measurement and estimation problems constrain the speed of up-gradation. Also, inadequate availability of skills in using quantitative risk management

models and lack of risk hedging investments for the domestic investors are major constraints. He concluded that with the beginning of a derivative market, new instruments of risk hedging would become available. Reviewed the various factors influencing the equity price and price eamings ratio He is of the opinion that equity prices are affected primarily by financial risk considerations that, in turn, affect earnings and dividends. He also stated that market risk in equity is much greater than in bonds, and it influences the price also. He disclosed that many analysts follow price earnings (P/E) ratio to value equity, which is equal to market price divided by eamings per share. He observed that inflationary expectations and higher interest rates tend to reduce P/E ratios whereas growth companies tend to have higher P/E ratios. He suggested that an investor should examine the trend of P/E ratios over time for each company. The various types of risks in relation to the different institutions He opined that 'Managing risk' has different meanings for banks, financial institutions, and non- banking financial

companies and manufacturing companies. In the case of manufacturing companies, the risk is traditionally classified as business risk and financial risk. Banks, financial institutions and nonbanking financial companies are prone to various types of risks important of which are interest rate risk, market risk, foreign exchange risk, liquidity risk, country and sovereign risk and insolvency risk. Suseela Subramanian (1998) commented on the risk management processes of banks. She revealed that banks need to do proper risk identification, classify risks and develop the necessary technical and managerial expertise to assume risks. Embracing scientific risk management practices will not only improve the profits and credit management processes of banks, but will also enable them to nurture and develop mutually beneficial relationships with customers. She concluded that the better the risk information and control system the more risk a bank can assume prudently and profitably.

2.8 THE INVESTMENT PROCESS-STAGES IN INVESTMENT:

The investment process is generally described in four stages. These stages are investment policy, investment analysis, valuation of securities and portfolio construction. A. Investment Policy: The first stage determines and involves personal financial affairs and objectives before making investments. It may also be called preparation of the investment policy stage. The investor has to see that he should be able to create an emergency fund, an element of liquidity and quick convertibility of securities in to cash. This stage may, therefore, be considered appropriate for identifying investment assets and considering the various features of investment.

B. Investment Analysis: When an individual has arranged a logical of the types of the investments that he requires on his portfolio, the next step is to analyses the securities available for investment. He must make a comparative analysis of the type of the industry, industry of security and fixed vs. variable securities. The primary concern at this stage would be to form beliefs regarding future behavior or prices and stocks, the expected returns and associated risk.

C.Valuation of investments: The third step is perhaps most important consideration of the valuation of investments, investments value, in general, is taken to be the present worth to the

owners of the futures benefits from investments. The investor has to bear in mind the value of these investments. Investment pattern of investors on different products appropriate sets of weights have to be applied with use of the forecasted benefits to estimate the value of the investment assets. Comparison of the value with the current market price of the asset allows a determination of the relative alternativeness of the asset. Each asset must be valued on its individual merit. Finally the portfolio should be constructed.

d. Portfolio Construction: As discussed under features of investment programmed, portfolio construction requires knowledge of the different aspects of securities. Consisting of safety and growth of principal, liquidity of assets after taking into account the stage involving investment timing, selection of investment, and allocation of savings to different investments The success of every investment decision has become increasingly important in recent times. Making sound investment decision requires both knowledge and skill. Skill is needed to evaluate risk and returns associated with an investment decision. Knowledge is required regarding the complex investment alternatives available in the economic environment.

2.9 SUCCESS IN INVESTMENT:

Success in most things is relative, and not less so in the field of investment. Success in investment means earning the highest possible return with the constraints imposed by the investors personal circumstances-age, family needs liquidity requirements, tax position and acceptability of risk. If possible, performance should be measured against alternative investment, or combination of investment, available to the investor within those constraints. Genuine success also means winning the battle against inflation, against the fall in the real value of savings and capital. To be successful investor, one should strive to achieve no less than the rate of return consistent with the risk assumed. But is this success? If markets are efficient, abnormal returns were not likely to be achieved, and so the best one can hope for return consistent with the level of risk assumed. The trick is to assess the level of risk we wish to assume and make certain that the collection of assets we buy fulfills our risk expectations. As a reward for assuming this level of risk, we will receive the returns that are consistent with it. If however, we believe that we do better than the level of return warranted by the level of risk assumed, then success must be

measured in these terms. But care must be exercised here. Investment pattern of investors on different products not indicate success in this sense. We are really talking about outperforming the average of the participant in the market for assets. And if we realize higher return we must be certain that we are not assuming higher risks consistent with those returns in order to measure our success. Thus we are left with two definitions of success. (i) Success is achieving the rate of return warranted by the level of risk assumed. Investors expect returns proportional to the risk assumed. (ii) Success is achieving a rate of return in excess or warranted by the level of risk assumed. Investors expect abnormal returns for the risk assumed. To be successful under the first definition, an investor must have a rational approach to portfolio construction and management. Reasonably efficient diversification is the key. To be successful under the second definition, an investor must have at least one of the following: Superior Analytical Skill, Superior Forecasting Ability, Inside Information, Dumb Luck Whether and to what extent anyone is likely to possess these characteristics and consistently be able to outperform the market by the level of risk assumed is critical issue. The investor should be aware of, but not denoted by, the fact that professional investors in particular, largely dominate investment markets, the stock market. As a consequence, grossly under-valued investments are rarely easy to come by. Moreover, he should beware of books subtitled. Investments should be looked at in terms of what they contribute to the overall portfolio, rather than their merits in isolation. Institutional investment will probably play some part, and performance tables are available to give some guidance. But personal direct investment should not be overlooked, particularly in the obvious area of Turk ownership, and ones own knowledge, skills, hobbies and acquaintances can also be put to advantage. More money has been lost in the stock market, then one can imagine simply because of the failure of investors to clearly define their objectives and assess their financial temperaments. In analyzing the portfolios of individual investors, the most common errors observed are: Firstly, portfolio is over diversified, containing so many issues that the investors cannot follow closely the development in those companies. Investment pattern of investors on different products Secondly, many portfolios suffer from overconcentration in one or two issues. Thirdly, all too often, the quality of these securities is not consistent with the stated investment goal and usually a portfolio contains too many speculative securities. Fourthly, many individual investors are afraid to take losses; they want to wait for

their stock to come back to the price they paid. Fifthly, most investors, without realizing it, do not have a plan. They are buying and selling and believe is going where the action is instead of sticking to an investment goal. Finally, most serious of all some investors consider only profit potential never the risk factor. They try to wait for the bottoms to buy and tops to sell, they dont learn from their mistakes and sight of their financial goals for the timeframe of the investment objectives under pressure of hope, fear, or greed. For those who determine to win the losers game, it is required:

1. Play your own game. Know your policies very well and play according to them all the time. 2. Do the things do best? Make fewer but better investment decisions. 3. Concentrate on your defences. Most investors spend too little time on sell-decisions. Sell decisions are as important as buy-decisions. Investors should spend at least equal time in making sell-decision.

Physically Difficult Approach Many investors seem to follow this approach, wittingly or unwittingly. They look at the newspapers and financial periodicals to learn about new issues, they visit the offices of brokers to get advice and application forms, and they apply regularly in the primary market. They follow the budget announcements intently, they read CMIE reports to learn about the developments in economy and various industrial sectors, they read investment columns written by the so called experts, they follow developments in the companies, they solicit information from company executives, they read the columns in technical analysis, and they attend seminars and conferences. In a nutshell, they apply themselves assiduously, diligently, and even doggedly. They operate on the premise that if they can be a step ahead of others, they will outperform the market. The physically difficult approach seems to have worked reasonably well for most of the investors in India since the late 1970s to the early 1990s, for three principal reasons: 1. Typically, issues in the primary market have been priced very attractively. 2. The secondary market, thanks to limited competition till almost 1991, was characterized by numerous inefficiencies that provided rewarding opportunities to the diligent investor.

3. An advancing price-earnings multiple, in general, bailed out even inept investors. Things, however, have changed from mid-1995. The opportunities for subscribing issues in the primary market have substantially dried up as companies, quite understandably, are placing securities with institutional investors at prices that are fairly close to the prevailing market prices. Likewise, the scope for earning superior returns in the secondary market has diminished as the degree of competition and efficiency is increasing, thanks to the emergence of hundreds of new.

2.10

THREE APPROACHES TO SUCCEED AS AN INVESTOR:

As Charles Ellis argued, it appears that there are three different ways of earning superior riskadjusted returns on stock market. The first one is physically difficult, the second one is intellectually difficult, and the third one is psychologically difficult 13. Investment pattern of investors on different products the crucial point of losers game is to put the balance sheet and the income statement through a fine screen. This is the first step in making sure to avoid a mistake and will help the investor to keep away from letting the excitement make him move too quickly. Remember the old saying. A fool and his money are quickly parted. Intellectually Difficult Approach the Intellectually Difficult Approach to successful investing calls for developing profound understandings of the nature of investments and hammering out a strategy based on superior insights. This approach has been followed mainly by the highly talented investors who have an exceptional ability, a rare perceptiveness, an unusual skill, or a touch of clairvoyance.

The psychologically difficult approach essentially calls for finding ways and means of substantially overcoming fear and greed. Its operational guidelines are as follows: 1. Develop an investment policy and adhere to it consistently. 2. Do not try to forecast stock prices. 3. Rely more on hard numbers and less on judgment 4. Maintain a certain distance from the market place

5. Face uncertainty with equanimity these guidelines look simple, but they are psychologically difficult to follow. The bulk of the investors this appears to be only sensible approach to improve the odds of their investment performance.

2.11

INVESTMENT AND SPECULATION:

Traditionally, investment is distinguished from speculation in three ways, which are based on the factors of: 1. Capital gains. 2. Time period.

3. Risk. Investment pattern of investors on different products wishes experts cannot only analyze information incorrectly; they can also find relationships that arent there- a phenomenon called illusory correlation.

Investment Speculation Time Horizon Long-term time Short-term planning framework beyond 12 holding assets even months. For one day with the objective. Risk it has limited risk. There are high profits and gains. Return it is consistent and high returns, though moderate over a long risk of loss is high. Period. Use of funds Own funds through Own and borrowed savings funds. Decisions safely, liquidity, Market behavior profitability and information, stability, judgments on considerations and movement in the performance of stock market.

1. Capital Gain The distinction between investment and speculation emphasizes that if the motive is primarily to achieve profits through price changes, it is speculation. If purchase of securities is preceded by proper investigation and analysis and review to receive a stable return over a period of time, it is termed as investment. Thus, buying low and selling high, making large capital gain is associated with speculation.

2. Investment pattern of investors on different products the second difference is the consideration of the time period. A longer-term fund allocation is termed as investment. A shortterm holding is associated with trading for the quick turn and is called speculation. The

distinction between investment and speculation is helped to identify the role of the investor and speculator. The investor constantly evaluates the worth of a security through fundamental analysis, whereas the speculator is interested in market action and price movement. These distinctions also draw out the fact that there is a very fine line of division between investment and speculation. There are no established rules and loss, which identify securities, which are permanent for investment. There has to be a constant review of securities to find out whether it is a suitable investment. To conclude, it will be appropriate to state that some financial experts have called investment a well grounded and carefully planned speculation, or good investment is a successful speculation. Therefore, investment and speculation are a planning of existing risks. If artificial and unnecessary risks are created for increased expected returns, it becomes gambling. 3. Risk The word risk has a definite financial meaning. It refers to possibility of incurring a loss in a financial transaction. In a broad sense, investment is considered to involve limited risk and is confined to those avenues where the principal is safe. Speculation is considered as an involvement of funds of high risk. An example may be cited of stock brokers lists of securities which labels and recommends securities separately for investments and speculation purposes. Risk, however, is a matter of degree and no clear-cut lines of demarcation can be drawn between high risk and low risk and sometimes these distinctions are purely arbitrary. No investments are completely risk-free. Even if it safety of principal and interest are considered, there are certain non manageable risks which are beyond the scope of personal power. These are (a) the purchasing power risk In other words, it is the fall in real value of the interest and the principal and (b) the money rate risk or the fall in market value when interest rate rises. These risks affect both the speculator and the investor. High risk and low risk are, therefore, general indicators to help and understanding between the terms investments and speculation.

Investment pattern of investors on different products the risks are caused by the following factors: 1) Wrong decision of what to invest in. 2) Wrong timing of investment. 3) Creditworthiness of the issuer: The securities of Government end semi-Government bodies are more credit worthy than those issued by the corporate sector and much less secure are those in the

unorganized sector like indigenous bankers, shroffs, chit funds etc. private limited companies share and shares of unlisted companies are more risky.

4) Maturity period is length of investment: The longer the period, the more risky is the investment normally.

5) Amount of investment: The higher the amount invested in any security the larger is the risk, while a judicious mix of investments in small quantities may be less risky. 6) Method of investment, namely, secured by collateral or not. 7) Terms of lending such as periodicity of servicing, redemption periods etc. 8) Nature of the industry or business in which the company is operating. 9) National and international factors, acts of god etc.

Reference was made to two types of Risk of investor: Systematic Risks Unsystematic Risks1. Systematic Risks Purchasing Power Risk: 19 Interest Rate Risk: The return on an investment depends on the interest rate promised on it and changes in market rates of interest from time to time. The costs of funds barrowed by companies or stockbrokers depend on interest rates. The market activity and investor perceptions change with the changes in interest rates. These interest rates depend on nature of instruments, stocks, bonds, loans etc maturity of the periods and the creditworthiness of the issuer of securities. But basically the monetary and credit policy, which is not controllable by the investor, affects the riskiness of investments due their effects on returns, expectations, and the total principal due to be refunded Market Risk: This arises out of changes in Demand and Supply pressures in the markets, following the changing flow of the information or expectations. The totality of the investor perception and subjective factors influence the events in the market which are unpredictable and give rise to risk, which is not controllable. 19. Investment pattern of investors on different products Systematic Risks are out of external and uncontrollable factors, arising out of the market, nature of the industry and state of the economy

and a host of other factors. In other words systematic risk refers to that portion of the total variability of the return caused by common factor affecting the prices of all securities alike through economic, political and social factors.

2. Unsystematic Risks- Unsystematic Risks emerge out of the known and controllable factors, internal to the issuer of the securities or companies. In other words unsystematic risk refers to that portion of the total variability of the return caused due to unique factors, relating that firm or industry, through such factors as management failure, labour strikes, raw material scarcity etc. While the systematic risk is common to all companies and has to be borne by the investor and compensated by the Risk Premium, The unsystematic risk can be reduced by the investor through proper diversification and planning a proper investment strategy for the purpose. Examples of Systematic Risks Financial Risk: This relates to the method of financing, adopted by the company, high leverage leading to larger debt servicing problems or short-term liquidity problems due to bad debts, delayed receivables and falls in current assets or rise in current liabilities. These problems could no doubt to be solved, but they may lead to fluctuate. Business Risk: This relates to variability of business, sales income, profits etc., which in turn depend on the market conditions for the product mix, input supplies, strength of competitors etc. This business risk is sometimes external to the company due to changes in government policy or strategy of competitors or unforeseen market conditions. They may be internal due to fall in production, labour problem, raw materials problem or inadequate supply of electricity etc. The internal business risk leads to fall in revenues and in profit of the company, but can be corrected by certain changes in the companys policies. Investment pattern of investors on different products Inflation or rise in prices lead to rise in costs of production, lower margins, wage rises and profit squeezing etc. The return expected by the investors will change due to change in real value of returns. Cost pushed inflation is caused by rise in the costs, due to wage rise or rise in input prices. Demand-pull forces operate to increase prices due to inadequate supplies and rising demand. The increase in demand may be caused by changing expectation of future interest rates and inflation or due to increase in money supply or creation of currency to finance the deficits of the government. This element of purchasing power risk is inherent in all investments and cannot be controlled by him. Examples of Unsystematic Risks Default or Insolvency Risk: The barrower

or issuer of securities may become insolvent or may default, or delay the payments due, such as interest installments or principal repayments. The barrowers credit rating might have fallen suddenly he became default prone and in its extreme form it may lead to in earnings, profits and dividends to share holders. Sometimes, if the company runs in to losses or reduced profits, these may lead to fall in returns to investors or negative returns. Proper financial planning and other financial adjustments can be used to correct this risk and as such it is controllable.

2.12 Marketability Risks:

Marketability Risks, involving loss of liquidity or loss of value in conversions from one asset to another say, from stocks to bonds, or vice versa Such risks may arise due to some features of securities, such as capability; or lack of sinking fund or Debenture Redemption Reserve fund, for repayment of principal or due to conversion terms, attached to the security, which may go adverse to the investor. All the above types of risks are of varying degrees, resulting in uncertainty or variability of return, loss of income and capital losses, or erosion of real value of income and wealth of the investor. Normally the higher the risk taken, the higher is the return. But sometimes the risk is caused by acts of God and there may be no return at all. 2.6 Investment and Gambling The difference between investment and gambling is very clear. From the above discussion, it is established that investment is an attempt to carefully plan, evaluate and allocate Management Risks: Management Risks, due to errors or inefficiencies of management, causing losses to the company. Political Risks: Political risks, fallowing the changes in the government, or its policy shown in fiscal or budgetary aspects etc., through changes in tax rates, imposition of controls or administrative regulations etc. Investment pattern of investors on different products insolvency or bankruptcies In such cases the investor may get no return or negative returns. An investment in a healthy companys share might turn out to be a waste paper, if within a short span, by the deliberate mistakes of management or acts of God, the company became sick and its share price tumbled below its face value. Other Risks In addition to the above major risks both in controllable and uncontrollable categories, there are many more risks, which can be listed, but in actual practice, they may vary in form, size and effect. Some of such identifiable risks are:

Financial Assets Real Assets Real assets refer to tangible assets, which are in the form of land and buildings, furniture, gold, silver, diamonds, or artifacts. These assets have a physical appearance. They may be marketable or non-marketable. They may also have the feature of being movable or non- movable. These assets are used to produce goods or services. . Investment pattern of investors on different products funds in various investment outlets which offers safety of principal, moderate and continuous returns and long-term commitment. Gambling is quite the opposite of investment. It connotes high risk and the expectation of high returns. It consists of uncertainty and high stakes for thrill and excitement. Typical examples of gambling are horse racing, game of cards, lottery etc. Gambling is based on tips, rumours and hunches, it is unplanned, non-scientific and without knowledge of the exact nature of risk. These distinctions between investment, speculation and gambling give us a basic idea of their nature, purpose and role. Investment and Arbitrage Investment is usually a planned method of safely putting ones savings into different outlets to get a good return. Arbitrage is the mechanism of keeping ones risk to the minimum through hedging and taking advantage of price differences in different markets. The simultaneous purchase of the same or similar security in two different markets would be an arbitrage transaction. Short-term gains can be expected through such transactions. An investor can also be an arbitrageur if he buys and sells securities in more than one stock exchange to take advantage of the price differentials in such exchanges. Derivatives introduced in the Indian market have a great potential for arbitrage transactions. Arbitrage transactions help in enhancing efficiency and liquidity in the stock market and in increasing the volume of trade. Hedgers, speculators and arbitrageurs can make riskless profits through the arbitrage process. Commodity Assets Commodities are a new form of investment in India. Commodity assets consist of wheat, sugar, potatoes, rubber, coffee and other grains. Commodities are also in the form of metal like gold, silver, aluminum and copper. It also consists of items like cotton oil and foreign currency. Importers and exporters invest in commodities to diversify their portfolios. Traders hedge or transact in commodities to make gains.

2.13 Factors Favourable For Investment:

The investment market should have a favourable environment to be able to function effectively. Business activities are marked by social, economic and political considerations. It is important that the economic and political factors are favourable. Generally, there are four basic considerations, which foster growth and bring opportunities for investment. A Stable Currency A well-organized monetary system with definite planning and proper policies is a necessary prerequisite to an investment market. Most of the investments such as bank deposits, life insurance and shares are payable in the currency of the country. A proper monetary policy will give direction to the investment outlets. As far as possible, the monetary policy should neither promote acute inflationary pressures nor prepare for a deflation model. Neither condition is satisfactory. Price inflation destroys the purchasing power of investments. Thrift is also penalized when the net interest after taxes received by the investor is less than the rise in the price level, leaving the investor with less total purchasing power than he had at the time of saving. Inflation occurs generally in unstable conditions like war or floods but in the last decade, it also discernible in peace conditions especially in developing countries because of huge government deficit in creating infrastructure. Deflation is equally disastrous because the nominal values of inventories, plant and machinery and land and building tend to shrink. An example of the evil effects of deflation can be cited for the period 1929-1933 in the United States when the shrinkage in nominal values came to a point of producing wholesale bankruptcy. A reasonable stable price level, which is produced by wise monetary and fiscal management, contributes towards proper control, good government, economic well being and a well- disciplined growth oriented investment market and protection to the investor. Legal Safeguards A stable government, which frames adequate legal safeguards, encourages accumulation of savings and investments. Investors will be willing to invest their funds if they have the assurance of protection of their contractual and property rights. In India, the investors have the dual advantage of free enterprise and control. Freedom, efficiency and growth are ensured from the competitive forces of private enterprises. Statutory control exerts discipline and curtails some element of freedom. In India, the political climate is conducive to investment since the new economic reforms in 1991 leading to liberalization and globalization. Investment pattern of investors on different products

Existence of Financial Institutions and Services The presence of financial institutions and financial services encourage savings, direct them to productive uses and helps the investment market go grow. The financial institutions in existence in India are mutual funds, development banks, commercial banks, life insurance companies, investment companies, investment bankers and mortgage bankers. The financial services include venture capital, factoring and forfeiting, leasing, hire purchase and consumer finance, housing finance, merchant bankers and portfolio management. Investment bankers are merchants of securities. They buy bonds and stocks of companies for re-sale to investors. The investment bankers are distinguished from security brokers who act as agents in buying and selling already issued securities for commission. Mortgage bankers sometimes act as merchants and sometimes as agents on mortgage loans generally on residential properties. They serve as middlemen between investors and borrowers and perform collateral service in connection with loans. Commercial banks and financial institutions also act as mortgage bankers in giving mortgage loans and servicing the loans. In India, there are a large number of financial institutions under Central Government and State Governments and rural bodies that have encouraged the growth of savings and investment. The Life Insurance Corporation and Unit Trust of India offer a wide variety of schemes for savings and give tax benefits also. Apart from these, there is a well-organized network of development banks such as the Industrial Development Bank of India (IDBI), Industrial Credit Investment Corporation of India (ICICI) and Industrial Finance Corporation of India (IFCI). At the state level, there are State Financial Corporation, for rural areas and agriculture, the National Bank of Agriculture and Rural Development (NABARD). These financial institutions and development banks offer a wide variety of policies for encouraging savings and investment. These institutions lend an element of strength to the capital market and promote discipline while encouraging growth. Since 1991, there has been a development of the private corporate sector. Many new financial institutions have emerged in the private sector. Insurance companies, mutual funds and venture capitalists leasing companies have been opened up to private financing agencies. Foreign banks have been allowed to do business. Thus, there is the presence of a large number of institutions and services, which channel the funds in productive directions. Investment pattern of investors on different products Choice of Investment The growth and development of the country leading to greater economic activity has led to the introduction of a vast array of investment outlets. Apart from putting aside

savings in savings banks where interest is low, investors have the choice of a variety of instruments. The question to reason out is which is the most suitable channel? Which media will give a balanced growth and stability of return? The investor in his choice of investment will have to try and achieve a proper mix between high rate of return and stability of return to reap the benefits of both. Some of the instruments available are equity shares and bonds, provident fund, life insurance, fixed deposits and mutual funds schemes. The three golden rules for all investors are: Invest early Invest regularly Invest for long term and not short term One needs to invest for 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 To meet the cost of inflation. Fundamental analysis of various investment alternatives: Before investing in various investment alternatives fundamental analysis is very necessary. A fundamental analysis believes that analyzing the economy, strength, management, production, financial status and other related information will help to choose investment avenues that will outperform the market and provide consistent gain to the investor. Fundamental analysis is the examination of the underlying forces that affect the interests of the economy, industrial sectors, and companies. It tries to forecast the future movement of capital market using signals. Investment pattern of investors on different products rom the economy, industry, company Fundamental analysis requires an examination of the market from broader prospective. It also examines the economic environment, industrial performance, and company performance before taking an investment decision.

Types of investment: 1. Short term Investment- It is an investment made by the investor for very short period of time i.e. for one to three years. Such as investment in bank, money market, liquid funds etc. 2. Long Term Investment When investor invests money for more than three to five years

then it is called long term investment. Such as investment in bonds, mutual funds, fixed bank deposits, PPF, insurance etc Company Analysis: Company analysis involved choice of investment opportunities within a specific industry that consists of several individual companies. How has the company been faring over the past few years? Seek information on its current operations, managerial capabilities, growth plans, its past performance vis--vis its competitors etc. Investment pattern of investors on different products o Cross study of performance of the

industry. Industry performance over times. Differences in industry risk. Prediction about market behaviors, Competition over the industry life cycle Moderate investors Moderate investors want to increase the value of their portfolios while protecting their assets from the risk of major losses. For example, a moderate investor might use an allocation model that has 60% in stock, 30% in bonds, and 10% in cash equivalents. While they will tend to favor blue chip and other large-cap stocks, they may be willing to invest a modest portion of their principal in higher risk securities such as international stock, smallcaps, and volatile sector funds in order to increase their potential for higher returns. Conservative investors generally, conservative investors feel that safeguarding what they have is their top priority. These investors want to avoid risk particularly the risk of losing any principal (their original investment) even if that means theyll have to settle for very modest returns. Conservative investors allocate most of their portfolios to bonds, such as Treasury notes or high- rated municipal bonds, and cash equivalents, such as CDs and money market accounts. Theyre generally reluctant to invest in stocks, which may lose value, especially over the short term. When conservative investors do venture into stocks theyre often inclined to choose blue chips or other large-cap stocks with well-known brands because they tend to change value more slowly than other types of stock and often pay dividend income.

2.14 Investor:

Investor is a person or an organization that invest money in various investment sources for specific objective. Attitude of investment is different in each alternative. E.g. financial market have different attitude towards risk and return. Some investors are risk averse, while some have an affinity of risk. The risk bearing capacity of investor is a function of personal, economical, environment, and situational factors such as income, family size, expenditure pattern, and age. A person with higher income is assumed to have higher risk- bearing capacity. Thus investor can be classified as risk skiers, risk avoiders, or risk bearers. Categories of Investors While there are as many investing styles as there are investors, most people fall more or less into one of three broad categories: conservative, moderate, aggressive.

Aggressive investors Aggressive investors concentrate on investments that have the potential for significant growth. They are willing to take the risk of losing some of their principal, with the expectation that they will30. Investment pattern of investors on different products l realize greater returns. Aggressive investors might allocate from 75 to 95% of their portfolios to individual stocks and stock mutual funds. While large- and small-cap stocks and funds may make up the core of their portfolios, many aggressive investors will have significant holdings in more speculative stocks and funds, such as emerging market and sector mutual funds. Since aggressive investors focus on growth, they are usually less inclined to hold income producing securities, such as bonds. An aggressive investing style is definitely not for the faint of heart. Its best suited for investors with a long-term investing horizon of 15 years or more, who are willing to make a long-term commitment to the stocks they buy. But history has shown that an aggressive investing approach, combined with a well diversified portfolio, and the patience to stick to a long-term buy-and-hold investing strategy through inevitable market downturns, can be the most profitable in the long run. Before making any investment, one must ensure to: o Obtain written documents explaining the investment o Read and understand such documents o Verify the legitimacy of the investment o Find out the costs and benefits associated with the investment o Assess the risk-return profile of the investment o Know the liquidity and safety aspects of the investment o Ascertain if it is appropriate for your specific goals o Compare these details with other investment opportunities available o Examine if it fits in with other investments you are considering or you have already made o Deal only through an authorized intermediary o Seek all clarifications about the intermediary and the investment o Explore the options available to you if something were to go wrong, and then, if satisfied, make the investment. Investment pattern of investors on different products Investment Avenues: In India, numbers of investment avenues are available for the investors. Some of them are marketable and liquid while others are non-marketable and some of them also highly risky while others are almost risk less. The investor has to choose Proper Avenue among them, depending upon his specific need, risk preference, and return expected Investment avenues can broadly be categorized under the following heads Corporate securities Equity shares Preference shares Debenture/Bonds GDRs/ADRs Deposit in bank and non banking companies Post office deposits and certificate o Life insurance policies o Provident fund schemes Government and semi-government securities o Mutual fund and schemes Real estate

1. Corporate securities: (a) Equity share Total equity capital of a company is divided into equal units of small denominations, each called a share. The holders of such shares are members of the company and have voting rights. When company makes profit shareholder receives their share of the profit in form of dividends. In addition, when company performs well and the future expectation from the company is very high, the price of the companies share goes up in the market. Investor can invest in shares either primary market offerings or in the secondary market. (b) Preference shares Preference share as that part of share capital of the Company which enjoys preferential right as to: (i) Payment of dividend at a fixed rate during the lifetime of the Company;

(ii) The return Investment pattern of investors on different products of capital on winding up of the Company. It is lie in between pure equity and debt. But preference shares cannot be traded, unlike equity shares, and are redeemed after a pre-decided period. Also, Preferential Shareholders do not have voting rights. These are issued to the public only after a public issue of ordinary shares. Preference shares also get traded in the market and give liquidity to investor. Investor can opt for this type of investment when their risk performance is very low.

(c) Debentures and 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. Many types of debenture and bonds have been structured to suit investors with different time needs. Though having higher risk as compared to bank fixed deposits, bonds and debentures do offer higher returns. Debenture instruments require scanning the market and choosing specific securities that will cater to investment objectives of the investor.

(d) Depository Receipts (GDRs/ADRs) Global depository receipts are the instrument in the form of a depository receipts or certificate created by the overseas depository bank outside India and issued to non-resident investors against ordinary shares. A GDR issued in America, is an American Depositary Receipts. As investors seek to diversify their equity holdings, the option of

GDRs and ADRs is very lucrative, while investing in such securities, investors should identify the capitalization and risk characterizes of the instrument and the companies performance in the home country.

(e) Warrants a warrant is a certificate giving its holder rights to purchase securities at a stipulated price within a specified time limit. The warrants act as a value addition because holder of the warrant has the right but not the obligation to investing in equity at the indicated rate. An option contract often sold with another security. For instance, corporate bonds may be sold with warrants to buy common stock of that corporation. Warrants are generally detachable. Investment pattern of investors on different products generally have lives of up to one year. The majority of options traded on exchanges have maximum maturity of nine months. Longer dated options are called Warrants and are generally traded over-the counter.

2.Savings bank account with commercial bank 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 investors use, which offers low interest (3.5% ), making them only marginally better than fixed deposits. 3. Bank fixed deposits Fixed Deposits with Banks are also referred to as term deposits. Fixed Deposits in banks are for those investors, who have low risk appetite. Bank FDs is likely to be lower than money market fund returns. Fixed deposits may be recurring deposits where in savings are deposited at regular intervals or fixed deposits of varying maturities or with the varying notice periods such as 15 days, etc. The interest rates on these deposits vary depending on the maturity period, from 4 to 9%. In general, it is lower for fixed deposits of shorter term and higher for fixed deposits of longer term. If the deposit period is less than 90 days, the interest is paid on maturity; otherwise it is paid quarterly. 4. Company fixed deposits for a manufacturing company the term of deposits can be one to three years, whereas for non-banking finance company it can vary between 25 months to five years. A manufacturing company can mobilize, by way of fixed deposits, an amount equal to 25 percent of its net worth from the public and an additional amount equal to 10 percent of its net worth from its share holders. A non banking finance company, however can mobilize a higher amount. The interest rates on company deposits are higher than those on bank fixed deposits.

5. Post Office Time Deposits (POTDs): Similar to fixed deposits of commercial banks, POTDs can be made in multiples of Rs 50without any limit. The interest rates on POTDs are, in general, slightly higher than those on bank deposits. The interest is calculated half-yearly and paid annually.

Investment pattern of investors on different products permitted up to 6 months. After 6 months, withdrawals are permitted. However, on withdrawals made between 6 months and 1 year, no interest is payable. On withdrawals after 1 year, but before the term of deposit, interest is paid for the period the deposit has been held, subject to a penal deduction of 2%. A POTD account can be pledged. Deposits in 10 years to 15 years Post Office Cumulative Time Deposit Account can be deducted before computing the taxable income under Section 80c. 6. Monthly Income Scheme of the Post Office: 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 Rs. 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 5% is paid at the time of maturity. Premature withdrawal is permitted if deposit is more than one year old. A deduction of 1% is levied from the principal amount if withdrawn prematurely. The 5% bonus is also denied. 7. Life insurance policies Insurance companies offer many investment schemes to investors. These schemes promote saving and additionally provide insurance cover. LIC is the largest life insurance company in India. Some of its schemes include life policies, convertible whole life assurance policy, endowment assurance policy, jeevan Saathi, money back policy etc. Insurance policies, while catering to the risk compensation to be faced in the future by investor, also have the advantage of earning a reasonable interest on their investment insurance premiums. 8. Public Provident Fund: A long-term savings instrument with a maturity of 15 years it can be made in monthly installments with a minimum of Rs.100 and a maximum of Rs.60,000 per annum and interest payable at 8% per annum compounded annually. It is not transferable, but has nomination facility. One withdrawal per financial year can be made any time after 5 years from the end of the year in which the subscription is made. Withdrawal is limited to 50% at the end of

the 4th year. All subscription of PPF is completely free and balances in PPF are not taken into account for wealth tax purpose.

9. Government and semi-government securities 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. The government issues securities in the money market and in the capital market. Money market instruments are traded in Wholesale Debt Market (WDM) trades and retail segments. Instruments traded in the money market are short term instruments such as treasury bills and convertible bonds. 10. Mutual fund 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. On the basis of objective we can categories mutual funds as equity funds/growth funds, diversified funds, sector funds, index funds, tax saving funds, debt/income funds, liquid funds/money market funds, gift funds, balanced funds. And on the basis of flexibility we can categories them as open-ended funds, close-ended funds and interval funds. 11. Real Estate Investment in real estate also made when the expected returns are very attractive. Buying property is an equally strenuous investment decisions. Real estate investment is often linked with the future development plans of the location. At present investment in real assets is booming. Investment pattern of investors on different products there are various investment source are available for investment which are directly or indirectly investing real estate.

12. Bullion investment the bullion offers investment opportunity in the form of gold, silver, and other metals; specific categories of metals are traded in the metal exchange. The bullion market presents an opportunity for an investor by offering returns and the end value of future. It has been absurd that on several occasions, when stock market failed, the gold market provided a return on investments.

Sources of study for investors: A look out for new investment opportunities helps investors to beat the market. There are many sources from which investors can gather the required information. Such as; (i) Financial institutions corporate house, government bodies and mutual funds are the main source of investment information. Many of these enterprises have their own website and post investment related information on their websites.

(ii) Financial market Stock exchange and regulated bodies also provide useful information to investor to make their investment decisions. With respect to secondary market, the Securities and Exchange Board of India uses various modes to promote investors education and takes great effort to achieve an investor friendly secondary market in India. The Reserve Bank of India also provide useful information relating to the prevent interest rates and non-banking financial intermediaries that mobiles money through deposit schemes. (iii) Financial service intermediaries these are intermediaries who promote securities among the public. Many of these intermediaries are the agencies of specific instruments especially tax saving instruments. These intermediaries offer to share their commission from there concerned organization with the individual investor thus investor get additional advantages while investing through intermediaries. Investment pattern of investors on different products (iv) Media Press sources such as financial newspapers, financial magazine, business news channel, websites etc. provide information related to investment to the public. Besides information on securities, these sources also provide analysis of information and in certain instance suggest suitable investment decisions to be made by investor. The foregoing discriminations about stock market and investment having under stood its important and its unique optimization in the money market

The group eventually moved to Dallas Street in 1874 and in 1875 became an official organization known as 'The Native Share & Stock Brokers Association'. In 1956, the BSE became the first stock exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act. The Bombay Stock Exchange developed the BSE Sensex in 1986, giving the BSE a means to measure overall performance of the exchange. In 2000 the BSE used this index to open its derivatives market, trading Sensex futures contracts. The development of Sensex options along with equity derivatives followed in 2001 and 2002, expanding the BSE's trading platform. Today, BSE is the world's number 1 exchange in terms of the number of listed companies and the world's 5th in transaction numbers. The market capitalization as on December 31, 2007 stood at USD 1.79 trillion. An investor can choose from more than 4,700 listed companies, which for easy reference, are classified into A, B, S, T and Z groups. The BSE Index, SENSEX, is India's first stock market index that enjoys an iconic stature, and is tracked worldwide. It is an index of 30 stocks representing 12 major sectors. The SENSEX is constructed on a 'free-float' methodology, and is sensitive to market sentiments and market realities. Apart from the SENSEX, BSE offers 21 indices, including 12 sect oral indices. Investment pattern of investors on different products three segments of the NSE trading platform were established one after another. The Wholesale Debt Market (WDM) commenced operations in June 1994 and the Capital Market (CM) segment was opened at the end of 1994. Finally, the Futures and Options segment began operating in 2000. Today the NSE takes the 14th position in the top 40 futures exchanges in the world. In 1996, the National Stock Exchange of India launched S&P CNX Nifty and CNX Junior Indices that make up 100 most liquid stocks in India. CNX Nifty is a diversified index of 50 stocks from 25 different economy sectors. The Indices are owned and managed by India Index Services and Products Ltd (IISL) that has a consulting and licensing agreement with Standard & Poor's. In 1998, the National Stock Exchange of India launched its web-site and was the first exchange in India that started trading stock on the Internet in 2000. The NSE has also proved its leadership in the Indian financial market by gaining many awards such as 'Best IT Usage Award' by Computer Society in India (in 1996 and 1997) and CHIP Web Award by CHIP magazine (1999). The past decade has been quite remarkable for the Securities market in India with the boom in the economy fuelled by better banking system. It has grown exponentially and the market has also witnessed fundamental institutional changes. There have also been significant improvements in efficiency, transparency and safety. However global

economic activity decelerated towards the end of the calendar year resulting in investment concerns on account of the sub-prime crisis in the US and other developed nations. Naturally the effects of this slowdown spilled over into developing economies also and we are looking ahead with some degree of concern over the prospects in the near future. In recent days economic collapsed in variation of the foreign investors fund main effect of the Indian economy in 20082009 the Bombay Stock Exchange (BSE) the sensex was 13,400 in the month of 8th July 2009. In other side National Stock Exchange (NSE) 3,974 is in the same month of 2009. Since the markets has taken up word moment from 9th July 2009 from the low of 3,974 to 4,578 on 24th July 2009 due to the Sharpe recovery in global economy as well as the 1 st quarter Results of all major company which has been announced better than expectations, Hence Indian markets are one of the fastest emerging markets in world and attracted by many Foreign intuitional investors. Outlook 2009-10 The Indian markets traded in a very narrow range during April amidst mixed cues coming from global and domestic markets. While the markets were hurt by the sovereign debt default concerns of Greece and SECs allegations against Goldman Sachs, it found some comfort from good set of FY 2009-2010earnings numbers declared by India Inc... Indias industrial output, as measured by the Index of Industrial Production (IIP), grew by 15.1% as against an annual gain of 16.7% in January 2010, and17.6% in December 2009. Industrial production grew by a mere 0.2% in the same month last year. Manufacturing output rose by 16% as against a mere 0.2% in February 2009, while Mining production was at 12.2% To regulate and develop a code of conduct and fair practices by the intermediaries involved in the stock market etc. Prohibit insider trading in securities. Registration and regulation of stock brokers, sub-brokers, registrar to all issue, merchant bankers, underwriters, portfolio managers and such other intermediaries who are associated with securities market To provide protection to the investors and safeguard their rights and interests such that there is steady flow of savings into the market. To promote fair dealings by the issuers of securities and ensure a market place where funds can be raised at relatively low costs. The Major Functions of SEBI: 40. Investment pattern of investors on different products.

The Regulatory Authority: SEBI The rise in number of investors was also leading to an increase in malpractices on part of the companies, brokers, merchant bankers, investment consultants and various other agencies involved in new issues. This led to erosion of investor confidence. The Government and the stock exchanges Realizing this, Securities Exchange Board of India (SEBI) was constituted were helpless as the existing legal framework was just not enough. By the Government of India in 1992 Investment pattern of investors on different products versus (-) 0.2% in the year-ago period. Electricity sector output expanded by 6.7%compared to just 0.7% in the same month a year Consumer Durables production expanded by 29.9%in February 2010 as against 6% in the same period in 2009. Output in Capital Goods grew by 44.4% in February 2010 as against 11.8% for the same month of 2009. The growth rate in Basic Goods category stood at 8.4% versus a contraction of 0.1% in the year-ago period. Intermediates Goods' output rose by15.6% in the month under review versus (-) 3% in the year- ago period. As many as 14 out of the 17 industry groups showed a positive growth during February 2010 compared to the corresponding month of the previous year. In the year 1986 with a view to offer a one-stop solution to Indian entities for their needs in financial services. Over the last two decades it has achieved the distinction of being amongst the most trusted and reputed brokerage houses in India. It provides a complete bouquet of products in equity, debt, commodities, forex, depository, derivatives and allied services in India. Asit C. Mehta Investment Intermediates Ltd. (ACMIIL) is the most trusted and reputed brokerage house for providing investment-related services in the capital market and money market and depository services in India. The company is jointly promoted by noted stock market professionals, Mr. Asit C. Mehta and Mrs. Deena A. Mehta, and is a part of the Mumbai-based Nucleus Group of Companies. The other group companies are engaged in IT and IT related services such as development of databases, back-office applications for banks, corporate document management solutions and geographical information systems (GIS).

Vision, mission 42. Investment pattern of investors on different products ACMIIL has pan-India presence through its branches, business associates, and marketing agents. You can also become a part of this growing business and assist us in increasing investor base, spreading investor education, and providing capital market services to clients. & Values, Relationshipcore to our business Company Managing Director Mrs. Deena Mehta was the first lady to be elected to the

governing board of the Stock Exchange Mumbai and first and only lady to be the President of Stock Exchange, Mumbai. First to receive a CRISIL grading for quality of operations and services First to achieve the ISO quality certification for business processes. First multiple seat holder and multiple exchange members. First limited liability Company to acquire membership on Bombay Stock Exchange. The firsts to our credit: That product, process, and technology led innovations are necessary preconditions for continuously adding value for all our constituents. That knowledge rather than capital is the key driver of this business. That transparency and fairness are the cornerstones of all dealings. That regulatory/legal compliance ensures economic sustainability. That every household can, should, and will need to participate in the financial markets directly or indirectly to protect their financial interests. Purpose to reach appropriate financial products, services and solutions to every Indian entity. Quality: Envisioned to be the Trusted Financial Intermediary, the group has etched out a very specific corporate purpose To reach appropriate financial products, services and solutions to every Indian entity.

It is incorporated as a publicly held limited liability company in India under the Indian Companies Act, 1956. The company was incorporated in the year 1993 under the new enabling provisions for limited liability stock broking companies framed by the Government to encourage limited liability Company in this area. ACMIIL was first such company on the Bombay Stock Exchange. Currently, the company is mostly held by its founder shareholders as follows: 43. Investment pattern of investors on different products We are currently expanding our business in the retail and institutional segments on the domestic and overseas (NRI/FII) fronts. We have select positions open for marketing, sales, research, back office operations, and business development activities. At Asit C. Mehta, we aim to select a candidate whose goals are aligned with ours. Knowledge about the product, a conceptual understanding of the financial markets, a thirst to innovate, desire to grow within the company, meticulousness towards the task on hand,

an ability to design and follow process are all qualities valued in the company. We foster a culture that rewards talent, initiative, hard work, and accountability and nurtures teamwork. & Service standardsGIS (India) Ltd. & compliance: In order to institutionalize business processes, our company has moved to a documented customer-centric quality management system. This has ensured that the entire organization is driven by the common objective of delivering quality brokerage services that would create a unique brand and top-of-the-mind recall. We are the first brokerage house to be certified under ISO 9001:2000 for the Equity and Debt segments. We are also first stock brokerage house to be graded under the Broker Grading service by Credit Rating & Information Services of India Ltd. (CRISIL) for our quality of operations and services provided to clients. Investment pattern of investors on different products

2.15 ORGANISATION STRUCTURE:

Investment pattern of investors on different products MEMBERSHIP: Cash Market: BSE, NSE Derivatives: BSE, NSE Debt: NSE Foreign Exchange: Accredited by FEDAI PMS under SEBI License Merchant Banking: Approved by SEBI under Category I Commodities: NCDEX MCX, DGCX, EAST INDIA Clearing Bank: State Bank of India Reach and Access (as on July 01, 2009) Investment Centres: 665 (branches, franchisee, etc.) States & UT covered: 26 Employees: 1002

PRODUCTS AND SERVICES: Equity Initial Public Offering (IPO) Equity Secondary trading (cash and derivative) Equity PMS Equity Online Trading Equity Depository Services

 Equity Investment Advisory (fundamental and technical) Equity Mutual Fund Equity - Arbitrage Commodity - Derivatives Debt Government Securities Debt Primary Placements. Investment pattern of investors on different products Debt Advisory Debt Mutual Funds Debt Relief bonds, etc. Forex Interbank broking Merchant Banking Amalgamation & Equity and Derivatives Trading: Equity trading is offered to retail clients through different channels in the Bombay Stock Exchange (BSE) Our services: Mergers Merchant Banking Private Equity Merchant Banking Public Offering. & Investment Banking: Institutional Desk: Equity trade execution services are provided to institutional investors both domestic and FII by our institutional desk.

Research and market Online Trading: Investmentz.com is our trading portal that offers online trading to retail investors in the BSE and NSE cash and derivatives segments. The investors can do their own trading through a browser- based interface as well as a streamer-based solution called live exchange. This service is also available through an Interactive Voice Response (IVR) facility for those clients who are unable to access the Internet service at any time. The company has tied up with leading nationalized, private and co-operative banks to offer share-trading services to the banks' customers. A seamless gateway has been established between the banking and depository software of the bank. the National Stock Exchange of India (NSE), for the cash and the derivatives segments. Investors are serviced through a PAN India network of over 650 associates / locations comprising of 585 franchisee and 65 company branches. (as on July 2009)

Commodity Trading Service is provided through Our Associate: Asit C. Mehta Commodity Services Pvt. Ltd. The company is member of Indias premier commodity exchanges, namely, the Multi Commodity Exchange of India Ltd. (MCX), the National Commodity47. Investment pattern of investors on different products ACMIIL has been granted a Category I Merchant Banking license by SEBI. It offers services in mergers, amalgamations, private equity, public offerings and a full gamut of investment banking services. & Derivatives Exchange, India (NCDEX) and the East India Cotton Exchange Association (EICA) The online trading portal also provides facility to trade on NCDEX. One of the group companies is a member of Dubai Gold & Inter-Bank Forex Desk: Our associate company, AsitCommodity Exchange (DGCX). Advisory Services: Research: Investors are provided with extensive information on markets and companies through hourly market reviews, periodic market commentary and recommendations, which enable them to make informed decisions. The company firmly believes that providing continuous and accurate decision making tools can add substantial value to its investors. Support Services C Mehta Forex Pvt. Ltd., undertakes inter-bank forex order execution. Accredited by the Foreign Exchange Dealers Association of India (FEDAI), the company is empanelled with approximately 60 banks and has a reasonable presence in the market.

Investment pattern of investors on different products available for trade confirmation, fund pay-in and pay-out, market views/calls, etc, to clients who actively use our trade execution services. As general information, Investmentz.com does not guarantee any accuracy of generation, databases, and delivery timings, and does not make any claims of any nature in this matter. Knowledge Center: Investor Education and Empowerment is essential for inculcating correct investment habits. We undertake various initiatives to educate investors and enable them to make informed investment decisions based on their investment profiles, risk appetites, and return expectations. Three important parts of our Investor Education and Awareness Program are: Market Wisdom series, Video broadcasts of Investment Education Topics, and the Nucleus Investments newsletter. We've added some exciting new features like Advise Me and Online Purchase of Mutual Funds and IPOs. Easy Trading: We have two options for trading: Quick Trade and Regular Trade. Quick Trade enables you to transact in any share quickly by presenting only the most relevant information. Regular Trade gives you full information about the share, enabling you to take an informed decision. User-friendly design: No part of the website is more

than three clicks away. This ensures speedy access to whatever information you may need. Message Board: Welcome to our new website! We are pleased to announce some exciting new features, an improved user-friendly design and services to benefit our esteemed customers. We have also taken steps to ensure faster loading of pages. 50. Investment pattern of investors on different products letter, newsletter, email, phone; SMS, etc. based on our assumption that you would need this information and benefit you in your wealth creation process. But, at times, you might need privacy and wish us not to contact you for such information. We would take the precaution and see not to disturb you by excluding your contact details from our marketing list. Kindly provide your details so as to not disturb you. Investor Education Topics We have been conducting the Investor Education and Awareness program via video broadcasts through our own network (branches and business associates), which is spread over 600 locations across 25 states and union territories in India. Speakers with industry expertise participate in Market Wisdom This is an Investor Empowerment series comprising material prepared to assist investors as they just step into the capital market or when they are in the middle of various curves in the wealth creation process. The various market wisdom series for general investor education and awareness some of them are as follows: Why do we need financial planning? Investors guide to share markets Safety, liquidity and returns what is Stock market? Equity or Mutual funds? The first step How to select your broker? Why is the stock market not a gambling den? Do operators run the stock market? Why do prices go up and down in the stock market? A Lesson in Options and Futures Sensex 12000...12800...13000...What to do? Dividend: What does it mean to investor? Margins and investors Hedge funds Dabba trading Exchangetraded funds Basics of commodities futures market Settlement of trades.. Investor grievance redressed mechanism Risk associated with equity investments etc. Investment pattern of investors on different products

Investment pattern of investors on different products video broadcasts from our head office in Mumbai, which is accessible from any of our branches across the country the last session, was on February 21, 2009; our expert in-house fundamental and technical research team conducted an investor education program on crude oil market outlook. Auto Pay-in / Payout of securities. Client Level Risk Management.

 Focus on wealth creation for the investors. Benefits of Trading with Us: & having secured brokerage grading of BQ1 from CRISIL of India. (Top Most Grading given to any Good Broking House) It has been marked as a very good broking house as regards to all the criteria given by CRISIL of India. In previous year it was in the BQ2 grade, but looking at the workings and very good Risk management system of the company, it has been upgraded to BQ1 Strong foundation of Technology, Compliance and Transparency First corporate member of the Bombay Stock Exchange Proven track record for the last 25 years in the stock broking industry First broking house to gain the ISO 9001:2000 certification Presence in 23 states and 650 locations. Portfolio information through Internet 24x7, 365 days Having its leadership position in equity broking, equity research, and forex and commodity markets To become the very old brokerage house in India and getting incorporated in the year 1984 got the BSE membership card at the early stages. Making a very good turnover and giving directly and indirectly appointment for more than 2500 people in India It has got more than 600 branches network all over India covering all most all states in India. It is an ISO 2000-9001 company. Investment pattern of investors on different products & now serving around 2lakhs clients all over India and abroad

CHAPTER-3

ANALYSIS AND INTERPRETATIONS

Preferred to invest your money Table No. 3.1

Options No. of respondents Percentage

Yes 74 98.66

No 1 1.33

Total 75 100

Source: Primary Data

Graph No. 3.1

No. of respondents Percentage

98.66 74

1 Yes No

1.33

Interpretation:

From the above table, it is clear that out of 75 respondents 74 respondents (98.66%) as said yes and 1 respondents (1.33%) said no for Do you invest you money.

Preferred to Age Group of investors Table No. 3.2

Options No. of respondents Percentage

15-25 19 25.33

25-35 39 52

35-45 14 19.77

45-60 3 4

Total 75 100

Source: Primary Data

Graph No. 3.2

No. of respondents 52

Percentage

39

25.33 19 14 3 15-25 25-35 35-45 45-60 4 19.77

Interpretation:

From the above table, it is clear that out of 75 respondents, 19 respondents (25.33%) as said 1525, 39 respondents (52%) said 25-35, 14 respondents (19.77%) said 35-45 and 3 respondents (4%) said 45-60 for age group of investor.

Preferred to best investment option Table No. 3.3

Options

Stock/Shares option 10 13.33

Banks

Commodities

Real estate

Post office

Any other

Total

No. of respondents
Percentage

18 24

10 13.33

13 17.33

18 24

6 8

75 100

Source: Primary Data

Graph No. 3.3

No. of respondents Percentage

24 18 13.33 10 10 13.33 13 17.33 18

24

8 6

Stock/Shares option

Banks

Commodities

Real estate

Post office

Any other

Interpretation:

From the above table, it is clear that out of 75 respondents, 10 respondents (13.33%) as said stock shares opinion, 18 respondents (24%) said banks, 10 respondents (13.33%) said commodities, and 13 respondents (17.33%) said real estate. 18 respondents (24%) said post

office and 6 respondents (8%) said any other for best investment option.

Preferred to Kind of investor Table No. 3.4

Options No. of respondents Percentage

Risk adverse 17 22.66

Risk lover 30 40

Higher risk 6 8

None of these 22 29.33

Total 75 100

Source: Primary Data

Graph No. 3.4

No. of respondents 40

Percentage

30 22.66 17 8 22

29.33

Risk adverse

Risk lover

Higher risk

None of these

Interpretation:

From the above table, it is clear that out of 75 respondents, 17 respondents (22.66%) as said risk adverse, 30 respondents (40%) said risk lower, 6 respondents (8%) said higher risk, and 22 respondents (29.33%) said none of these for kind of investment.

Preferred to investment Pattern Table No. 3.5

Options

Low risk low return 16 21.33

High risk high return 17 22.66

Higher risk 1 1.33

High risk low return 5 6.67

Low risk high return 27 36

None of these 9 12

Total

No. of respondents
Percentage

75 100

Source: Primary Data

Graph No. 3.5

No. of respondents Percentage 36

27 21.33 16 17 12 9 5 1 Low risk low return 1.33 High risk low Low risk high return return None of these 6.67 22.66

High risk high Higher risk return

Interpretation: From the above table, it is clear that out of 75 respondents 16 respondents (21.33%) as said low risk low return, 17 respondents (22.66%) said high risk high return, 1 respondents (1.33%) said high risk, 5 respondents (6.33%) said high risk low return and 27 respondents (17.33%) said low risk high return and 9 respondents (17.33%) said none of these for investment pattern prefer.

Preferred to investment time duration Table No. 3.6

Options No. of respondents Percentage

0-2 years 10 13.33

2-3 years 13 17.33

3-4 years 11 14.66

4-5 years 18 24

More than 5 years 23 30.66

Total 75 100

Source: Primary Data

Graph No. 3.6

No. of respondents Percentage 30.66 24 17.33 13.33 10 13 11 14.66 18

23

0-2 years

2-3 years

3-4 years

4-5 years

More than 5 years

Interpretation:

From the above table, it is clear that out of 75 respondents 10 respondents (13.33%) as said up to 2 years, 13 respondents (17.33%) said 2-3 years, 11 respondents (14.66%) said 3-4 years, 18 respondents (24%) said 4-5 years and 23 respondents (30.66%) said more than 5 years for investment time duration.

Preferred to Professional advice regarding investment Table No. 3.7

Options No. of respondents Percentage Yes 74 98.66 No 1 1.33 Total 75 100

Source: Primary Data

Graph No. 3.7

No. of respondents

Percentage

98.66 74

1 Yes No

1.33

Interpretation:

From the above table, it is clear that out of 75 respondents 74 respondents (98.66%) as said yes and 1 respondents (1.33%) said no for do you take any professional advice regarding your investment or you take your investment decision at your own choice.

Preferred to take advice Table No. 3.8

Options No. of respondents Percentage

Professional adviser Friends 17 22.66 8 10.66

Relatives 17 22.66

Magazine 13 17.33

Others 20 26.66

Total 75 100

Source: Primary Data

Graph No. 3.8

No. of respondents Percentage 26.66 22.66 17 10.66 8 17 13 22.66 20 17.33

Professional adviser

Friends

Relatives

Magazine

Others

Interpretation:

From the above table, it is clear that out of 75 respondents 17 respondents (22.66%) as said professional, 8 respondents (10.66%) said friends, 17 respondents (22.66%) said relatives, 13 respondents(17.33%) said magazines and 20 respondents (17.33%) said others for If yes then from whom you take advice.

Preferred to money in bank and type of bank Table No. 3.9

Options

Public / Government Banks 20 26.66

Private Banks 19 25.33

Commercial Banks 10 13.33

Cooperative Banks 13 17.33

Others

Total

No. of respondents Percentage

13 17.33

75 100

Source: Primary Data

Graph No. 3.9

No. of respondents 26.66 Percentage

25.33

20

19 17.33 13.33 10 13 13 17.33

Public / Government Banks

Private Banks

Commercial Banks Cooperative Banks

Others

Interpretation:

From the above table, it is clear that out of 75 respondents 20 respondents (26.66%) as said public and government banks, 19 respondents (25.33%) said private banks, 10 respondents (13.33%) said commercial banks, 13 respondents (17.33%) said cooperatives banks and 13 respondents (17.33%) said others for if you invest your money in banks then what type of bank you prefer.

Preferred to return on investment Table No. 3.10

Options No. of respondents Percentage

Avg. Return 23 30.66

Above Avg. Return 16 21.33

Below Avg. Return 16 21.33

None of these 20 26.66

Total 75 100

Source: Primary Data

Graph No. 3.10

No. of respondents 30.66

Percentage

26.66 23 16 21.33 16 21.33 20

Avg. Return

Above Avg. Return

Below Avg. Return

None of these

Interpretation:

From the above table, it is clear that out of 75 respondents 23 respondents (30.66%) as said average return, 16 respondents (21.33%) above average return, 16 respondents (21.33%) below average return and 20 respondents (26.66%) said none of these for what kind of investment return you expect from your investment.

Preferred to frequency of investment

Table No. 3.11

Options No. of Respondents Percentage

Once a month 21 28

Once a quarter 13 17.33

Once a year 25 33.33

Whenever there is enough money 13 17.33

None of these 3 4

Total 75 100

Source: Primary Data

Graph No. 3.11

No. Of respondents 33.33 28 25 21 17.33 13 13 17.33 Percentage

Once a month

Once a quarter

Once a year

Whenever there is enough money

None of these

Interpretation:

From the above table, it is clear that out of 75 respondents 21 respondents (28%) as said once a month, 13 respondents (17.33%) once a quarter, 25 respondents (33.33%) said once a year , 13 respondents (17.33%) as said whenever there is enough money and 3 respondents (4%) said none of these for frequency of investment.

Preferred to percent of income invest Table No. 3.12

Options No. of respondents Percentage

0- 3% of income 16 21.33

3% -5% of income 35 46.66

5%-10% of income 22 29.33

More than 10% of income 2 2.66

Total 75 100

Source: Primary Data

Graph No. 3.12

No. of respondents 46.66

Percentage

35 29.33 21.33 16 22

2 0- 3% of income 3% -5% of income 5%-10% of income

2.66

More than 10% of income

Interpretation:

From the above table, it is clear that out of 75 respondents 16 respondents (21.33%) as said 0-3% of income, 35 respondents (46.66%) said 3-5% of income, 22 respondents (29.33%) said 5-10% of income and 2 respondents (2.66%) said more than 10 % of income for what percent of income you invest.

Preferred to take investment decision Table No. 3.13

Options With the reference Of Friends/Relatives With the reference Of Chartered Account By reading prospectus and other important documents 13 17.33 With the advice of Agents/portfolio Manager Total

No. of respondents Percentage

28 37.33

4 5.33

30 40

75 100

Source: Primary Data Graph No. 3.13

No. of respondents 37.33 28 17.33 13 4 0 With the reference 0 With the reference By reading prospectus and other important documents With the advice of Agents/portfolio Manager 5.33 30 Percentage 40

Interpretation:

From the above table, it is clear that out of 75 respondents 28 respondents (37.33%) as said with the reference of friends/relatives, 4 respondents (5.33%) with the reference, 13 respondents (17.33%) said by reading prospectus and other important documents and 30 respondents (40%) said with the advice of agents/portfolio manager for taking investment decision.

Preferred to next 3-5 years, expect your annual income to change

Table No. 3.14

Options

Increase

Decrease 13 17.33

Remain the same 20 26.66

Total 75 100

No. of respondents 42 Percentage 56

Source: Primary Data

Graph No. 3.14

No. of respondents 56 Percentage

42

26.66 17.33 13 20

Increase

Decrease

Remain the same

Interpretation:

From the above table, it is clear that out of 75 respondents 42 respondents (56%) as said increase, 13 respondents (36%) decrease and 20 respondents (5.33%) said remain in the same for factor annual income expecting.

Experience in the market Table No. 3.15

Options No. of respondents Percentage

Less than a year 35 46.66

1 years 30 40

2-3 years 8 10.66

More than 4 years 2 2.66

Total 75 100

Source: Primary Data Graph No. 3.15

No. of respondents 46.66 40 35 30 Percentage

10.66 2 2.66

Less than a year

1 years

2-3 years

More than 4 years

Interpretation:

From the above table, it is clear that out of 75 respondents 35 respondents (46.66%) as said less than a year, 30 respondents (40%) 1 year, 8 respondents (10.66%) said 2-3 years and 2 respondents (2.66%) more than 4 years for experience in the market.

Trading Preference Table No. 3.16

Options No. of respondents Percentage 9 12

Speculation 36 48

Investment 30 40

Both

Total 75 100

Source: Primary Data

Graph No. 3.16

No. of respondents

Percentage

48 40 36 30

12

Speculation

Investment

Both

Interpretation:

From the above table, it is clear that out of 75 respondents 9 respondents (12%) as said Speculation, 36 respondents (48%) investment and 30 respondents (40%) said both for trading preference.

Factors influencing the investment decisions Table No. 3.17

Options Advice from Broker Current news 27 36 Reviews in Financial Magazines 4 5.33 Advice from Friends 9 12 Self Evaluation Others Total

13 No. of respondents Percentage 17.33

19 25.33

3 4

75 100

Source: Primary Data Graph No. 3.17

No. of respondents 36 27 19 12 9 4 5.33 3 Advice from Friends Self Evaluation Others 4 Percentage

25.33

17.33 13

Advice from Broker

Current news

Reviews in Financial Magazines

Interpretation: From the above table, it is clear that out of 75 respondents 13 respondents (17.33%) as said advice from broker, 27 respondents (36%) current news, 4 respondents (5.33%) said review in financial magazine, 9 respondents (12%) as said advice from friends, 19 respondents (25.33%) said self evaluation and 3 respondents (4%) said others for factor influencing the investment decision.

Preferred to Risk Taking

Table No. 3.18 Options High Low Moderate Total

No. of respondents Percentage

8 10.66

43 57.33

24 32

75 100

Source: Primary Data

Graph No. 3.18

No. of respondents

Percentage

57.33 43 32 24 10.66

High

Low

Moderate

Interpretation:

From the above table, it is clear that out of 75 respondents, 8 respondents (10.66%) as said high, 43 respondents (57.33%) low and 24 respondents (32%) said moderate for how much risk are you willing to take.

Preferred to Taking Loss Table No. 3.19 Options High Moderate Low Total

No. respondents Percentage

of 2 37 36 75

2.66 Source: Primary Data

49.33

48

100

Graph No. 3.19

No. of respondents Percentage

49.33 37

48 36

2 High

2.66 Moderate Low

Interpretation:

From the above table, it is clear that out of 75 respondents, 2 respondents (2.66%) as said High, 37 respondents (49.33%) said moderate and 36 respondents (48%) as sais low for How much loss are you willing to take.

Preferred to Annual Income

Table No. 3.20 Options No. of respondents Percentage 17.33 37.33 30.66 14.66 100 Less than 2 lakh 13 Between 2 lakh and 4 lakh 28 Between 4 lakh and 6 lakh 23 Above6 lakh 11 Total 75

Source: Primary Data

Graph No. 3.20

No. of respondents 37.33

Percentage

30.66 28 23 17.33 13 14.66 11

Less than 2 lakh

Between 2 lakh and 4 lakh

Between 4 lakh and 6 lakh

Above6 lakh

Interpretation:

From the above table, it is clear that out of 75 respondents, 13 respondents (17.33%) as said less than 2 lakh, 28 respondents (37.33%) said between 2-4 lakhs, 23 respondents (30.66%) said between 4-6 lakhs and11 respondents (14.66%) said above 6 lakhs for Annual income.

Type of investor Table No. 3.21

Options No. of respondents Percentage

Aggressive 29

Conservative 20

Moderate or Balanced 26

Total 75

38.66

26.66

34.66

100

Source: Primary Data

Graph No. 3.21

No. of respondents 38.66

Percentage

34.66 29 20 26.66 26

Aggressive

Conservative

Moderate or Balanced

Interpretation:

From the above table, it is clear that out of 75 respondents, 29 respondents (38.66%) as aggressive, 20 respondents (26.66%) said conservatives and 26 respondents (34.66%) as said moderate or balanced for types of investor. Funds opinion are performing well

Table No. 3.22

Options

Templeton

SBI Mutual Fund

No. of 14 respondents Percentage 18.66

27 36

BIRLA SUN LIFE Mutual Fund 13 17.33

HDFC Mutual Fund

Total

21 28

75 100

Source: Primary Data

Graph No. 3.22

No. of respondents 36 27 18.66 14

Percentage

28 21 17.33 13

Templeton

SBI Mutual Fund

BIRLA SUN LIFE Mutual Fund

HDFC Mutual Fund

Interpretation:

From the above table, it is clear that out of 75 respondents, 14 respondents (18.66%) as said Templeton, 27 respondents (36%) said SBI mutual funds,13 respondents (17.33%) Birla sun life mutual fund and 21 respondents (28%) HDFC mutual fund for funds opinion is performing well.

Preferred to Financial Instrument in Investment Table No. 3.23 Options No. of respondents Percentage 20 22.66 16 17.33 20 4 100 Government securities 15 Equity 17 Gold, Silver 12 Real Estate 13 Post Office 15 Others 3 Total 75

Source: Primary Data

Graph No. 3.23

No. of respondents 22.66 20 17 15 12 16 13 17.33 15 20 Percentage

Government securities

Equity

Gold, Silver

Real Estate

Post Office

Others

Interpretation:

From the above table, it is clear that out of 75 respondents, 15 respondents (20%) as said government securities, 17 respondents (22.66%) said equities, 12 respondents(16%) said gold and silver, 13 respondents (17.33%) real estates, 15 respondents (20%) post office and 3 respondents (4%) others for financial instruments are parts of investment.

Following planed insured Table No. 3.24

Options No. of respondents Percentage

Flexi plan 20 26.66

Retirement Plan 23 30.66

Endowment Plan 14 18.66

Capital Multiplier Plan 18 24

Total 75 100

Source: Primary Data

Graph No. 3.24

30.66 26.66 23 20 14 18.66 18 24

Flexi plan

Retirement Plan

Endowment Plan

Capital Multiplier Plan

Interpretation:

From the above table, it is clear that out of 75 respondents, 20 respondents (26.66%) as said Flexi plan, 23 respondents (30.66%) said retirement plan, 14 respondents(18.66%) said endowment plan, 18 respondents (24%) capital multiplier plan for purpose behind investment following planned insured.

Preferred to purpose behind investment Table No. 3.25

Options No. of respondents Percentage

Wealth creation 11 14.66

Tax saving 16 21.33

Earn Returns 19 25.33

Future expenses 23 30.66

Others 6 8

Total 75 100

Source: Primary Data

Graph No. 3.25

No. of respondents Percentage 30.66 25.33 21.33 19 14.66 11 8 6 16 23

Wealth creation

Tax saving

Earn Returns

Future expenses

Others

Interpretation:

From the above table, it is clear that out of 75 respondents, 11 respondents (14.66%) as said wealth creation, 16 respondents (21.33%) said tax saving, 19 respondents(25.33%) said earn returns, 23 respondents (30.66%) said future expenses and 6 respondents (8%) said other for purpose behind investment.

Preference to various Investment avenues Table No. 3.26

Options

Shares

Commodity market 10 13.33

Debentures

Insurance

Bank deposits 23 30.66

Post office savings 15 20

Total

No. of respondents Percentage

10 13.33

4 5.33

13 17.33

75 100

Source: Primary Data

Graph No. 3.26

No. of respondents

Percentage 30.66 23 20 17.33 15

13.33 10

13.33 10 4 5.33

13

Shares

Commodity market

Debentures

Insurance

Bank deposits

Post office savings

Interpretation:

From the above table, it is clear that out of 75 respondents, 10 respondents (13.33%) as shares, 10 respondents (13.33%) said commodity market, 4 respondents (5.33%) said debentures, 13 respondents (17.33%) said insurance, 23respondents (30.66%) as said bank deposits and 15 respondents (20%) said post office savings for preference to various investment avenues.

Preferred to frequency trading Table No. 3.27

Options No. of respondents Percentage

Daily 9

Weekly 4

Monthly Every season 33 11

Occasionally 10

Yearly 8

Total 75

12

5.33

44

14.66

13.33

10.66

100

Source: Primary Data

Graph No. 3.27

No. of respondents 44 Percentage

33

12 9 4 5.33

14.66 11 10

13.33 8

10.66

Daily

Weekly

Monthly

Every season

Occasionally

Yearly

Interpretation:

From the above table, it is clear that out of 75 respondents, 9 respondents (12%) as said daily, 4 respondents (5.33%) said weekly, 33 respondents(44%) said monthly, 11 respondents (14.66%) said every season , 10 respondents (13.33%) said occasionally and 8 respondents(10.66%) said yearly for frequency of trading.

Think as the specialty of trading in Commodity market Table No. 3.28

Options No. of respondents Percentage

Price hedging 12 16

Regulated marketing 13 17.33

Low risk 38 50.66

Quality products 12 16

Total 75 100

Source: Primary Data

Graph No. 3.28

No. of respondents

Percentage

50.66 38

16 12

17.33 13 12

16

Price hedging

Regulated marketing

Low risk

Quality products

Interpretation:

From the above table, it is clear that out of 75 respondents, 12 respondents (16%) as said price hedging, 13 respondents (17.33%) said regulated marketing, 38 respondents(50.66%) said low risk and 12 respondents (16%) said quality products for think as the specially of trading in commodity market.

Investment decision is depending

Table No. 3.29

Options No. of respondents Percentage

Risk Involved 10 13.33

Return they give 13 17.33

Past performance 14 18.66

Future growth 22 29.33

Other factors 16 21.33

Total 75 100

Source: Primary Data

Graph No. 3.29

No. of respondents Percentage

29.33 22 17.33 13.33 10 13 14 18.66 16

21.33

Risk Involved

Return they give

Past performance

Future growth

Other factors

Interpretation:

From the above table, it is clear that out of 75 respondents, 10 respondents (13.33%) as said risk involves, 13 respondents (17.33%) said return they give, 14 respondents(18.66%) said past performance, 22 respondents (29.33%) said future growth and 16 respondents (21.33%) said other factors for investment decision is depending.

CHAPTER-4

FINDINGS AND SUGGESTIONS

4.1 FINDINGS:-

1. It is clear from the interpretations 74 respondents (98.66%) as said yes. 2. It is clear that out of 75 respondents, 39 respondents (52%) for age group of investor. 3. It is clear that out of 75 respondents 18 respondents (24%) said banks and 18 respondents (24%) said post office any other for best investment option. 4. It is clear that out of 75 respondents 30 respondents (40%) said risk lower for kind of investment. 5. It is clear that out of 75 respondents 17 respondents (22.66%) said high risk high return for investment pattern prefer. 6. It is clear that out of 75 respondents 23 respondents (30.66%) said more than 5 years for investment time duration. 7. It is clear that out of 75 respondents 74 respondents (98.66%) as said yes professional advice regarding your investment or you take your investment decision at your own choice 8. It is clear that out of 75 respondents 17 respondents (22.66%) as said professional 17 respondents (22.66%) said relatives take advice. 9. It is clear that out of 75 respondents 20 respondents (26.66%) as said public and government banks for if you invest your money in banks then what type of bank you prefer. 10. It is clear that out of 75 respondents 23 respondents (30.66%) as said average return expect from your investment. 11. It is clear that out of 75 respondents 25 respondents (33.33%) said once a year for frequency of investment. 12. It is clear that out of 75 respondents 35 respondents (46.66%) said 3-5% of income for what percent of income you invest. 13. It is clear that out of 75 respondents 28 respondents (37.33%) as said with the reference of friends/relatives for taking investment decision. 14. It is clear that out of 75 respondents 42 respondents (56%) as said increase annual income expecting.

15. It is clear that out of 75 respondents 35 respondents (46.66%) as said less than a year for experience in the market. 16. It is clear that out of 75 respondents 36 respondents (48%) investment for trading preference. 17. It is clear that out of 75 respondents 27 respondents (36%) current news for factor influencing the investment decision. 18. It is clear that out of 75 respondents 43 respondents (57.33%) low. 19. It is clear that out of 75 respondents 37 respondents (49.33%) said moderate for how much loss are you willing to take. 20. It is clear that out of 75 respondents 28 respondents (37.33%) said between 2-4 lakhs for Annual income. 21. It is clear that out of 75 respondents 29 respondents (38.66%) as aggressive for types of investor. 22. It is clear that out of 75 respondents 27 respondents (36%) said SBI mutual funds for funds opinion is performing well. 23. It is clear that out of 75 respondents17 respondents (22.66%) said equities for financial instruments are parts of investment. 24. It is clear that out of 75 respondents 23 respondents (30.66%) said retirement plan for purpose behind investment following planned insured. 25. It is clear that out of 75 respondents 19 respondents (25.33%) said earn returns for purpose behind investment. 26. It is clear that out of 75 respondents 23respondents (30.66%) as said bank deposits for preference to various investment avenues. 27. It is clear that out of 75 respondents 33 respondents (44%) said monthly for frequency of trading. 28. It is clear that out of 75 respondents 38 respondents (50.66%) said low risk for think as the specially of trading in commodity market. 29. It is clear that out of 75 respondents 22 respondents (29.33%) said future growth for investment decision is depending. 4.2 SUGGESTION To read and choose the best investment options

BIBLIOGRAPHY

BIBLIOGRAPHY

BIBLIOGRAPHY

B.1 BOOKS i) Research Methodology ii) Marketing Research iii) Security analysis and portfolio management

C.R.Kothari M.V.Kulkarni V.A. Avadhani

B.2 JOURNALS i) Indian Journal Of Finance ii) Vikalpa IIM,Ahmedabad iii) Management Review, IIM, Bengaluru

B.3 WEB SITES 1. http:// www.Equitymaster.com 2. http://www.Moneycontrol.com 3. http://www.webindia123.com/finance/post/mis.htm 4. http://nseindia.com/

ANNEXURES

ANNEXURE-A.1 INTERVIEWER SCHEDULE

INVESTOR PREFERENCE TO INVESTMENT

Name:-.

Age: -.

Address:-..

City:-..

State:-

Contact No:-..

Gender: - (a) male

(b) female

Occupation:-..

1. Do you invest your money? (a)Yes (b) No

2. Age Group of investors? (a) 15-25 (b) 25-35 (c) 35-45 (d) 45-60 (e) Above 60

3. If yes then which is the best investment option according to you? (a) Stock/Shares option (b) Banks (c) Commodities (d) Real estate (e) Post office (f) Any other

4. What kind of investor you are? (a) Risk adverse (b) Risk lover (c) Higher risk (d) None of these

5. Which investment Pattern you prefer? (a) Low risk low return (b) High risk high return (c) Higher risk (d) High risk low return (e) Low risk high return (f) None of these

6. What is your investment time duration? (a) 0-2 years (b) 2-3 years (c) 3-4 years (d) 4-5 years (e) More than 5 years

7. Do you take any professional advice regarding your investment or you take your investment decision at your own choice? (a) Yes (b) No 8. If yes then from whom you take advice? (a) Professional adviser (b) Friends (c) Relatives (d) Magazine (e) Others

9. If you invest your money in banks then what type of bank you prefer? (a) Public / Government Banks (b) Private Banks (c) Commercial Banks (d) Cooperative Banks (e) Others 10. What kind of investment return you expect from your investment? (a) Avg. Return (b) Above Avg. Return (c) Below Avg. Return (d) None of these

11. What is the frequency of investment? (a) Once a month (b) Once a quarter (c) Once a year (d) Whenever there is enough money (e) None of these

12. What percent of income you invest? (a) 0- 3% of income (b) 3% -5% of income (c) 5%-10% of income (d) More than 10% of income

13. How you take investment decision? (a) With the reference of Friends/Relatives (b) With the reference of Chartered Account (c) By reading prospectus and other important documents (d) With the advice of Agents/portfolio Manager

14. Over the next 3-5 years, do you expect your annual income to change? (a) Increase (b) Decrease (c) Remain the same

15. What is your Experience in the market? (a) Less than a year (b) 1 years (c) 2-3 years (d) More than 4 years

16. What is your Trading Preference? (a) Speculation (b) Investment (c) Both

17. Factors influencing the investment decisions? (a) Advice from Broker (b) Current news (c) Reviews in Financial Magazines (d) Advice from Friends (e) Self Evaluation (f) Others 18. How much Risk are you willing to take? (a) High (b) Low (c) Moderate 19. How much loss are you willing to take? (a) High (b) Moderate (c) Low

20. What is your annual income? (a) Less than 2 lakh (b) Between 2 lakh and 4 lakh (c) Between 4 lakh and 6 lakh (d) Above 6 lakh

21. What type of investor you are? (a) Aggressive (b) Conservative (c) Moderate or Balanced 22. Which funds in your opinion are performing well? (a) Templeton (b) SBI Mutual Fund (c) BIRLA SUN LIFE Mutual Fund (d) HDFC Mutual Fund

23. Which financial instruments are parts of your Investment? (a) Government securities (b) Equity (c) Gold, Silver (d) Real Estate (e) Post Office (f) Others

24. Which of the following planed you is insured? (a) Flexi plan (b) Retirement Plan (c) Endowment Plan (d) Capital Multiplier Plan

25. What is the purpose behind investment? (a) Wealth creation (b) Tax saving (c) Earn Returns (d) Future expenses (e) Others 26. Your preference to various Investment avenues? (a) Shares (b) Commodity market (c) Debentures (d) Insurance (e) Bank deposits (f) Post office savings 27. What is the frequency of your trading? (a) Daily (b) Weekly (c) Monthly (d) Every season (e) occasionally (f) yearly 28. What do you think as the specialty of trading in Commodity market? (a) Price hedging (b) Regulated marketing (c) Low risk (d) Quality products

29. Your Investment decision is depending on (a) Risk Involved (b) Return they give (c) Past performance (d) Future growth (e) Other factors

ANNEXURE-A.2
FREQUENCY DISTRIBUTION

Q.1. Do you invest your money?

Options No. of Respondents

Yes

No

Total 75

Q.2. Age Group of investors?

Options No. of Respondents

15-25

25-35

35-45

45-60

Above 60 0

Total 75

Q.3. If yes then which is the best investment option according to you?

Options No. of Respondents

Stock/Shares option

Banks

Commodities

Real estate

Post office

Any other

Total 75

Q.4.What kind of investor you are?

Options No. of Respondents

Risk adverse

Risk lover

Higher risk

None of these

Total 75

Q.5.Which investment Pattern you prefer?

Options

Low risk low return

High risk high return

Higher risk

High risk low return

Low risk high return

None of these

Total

No. of Respondents

75

Q.6.What is your investment time duration?

Options No. of Respondents

0-2 years

2-3 years

3-4 years

4-5 years

More than 5 years

Total 75

Q.7. Do you take any professional advice regarding your investment or you take your investment decision at your own choice?

Options No. of Respondents

Yes

No

Total 75

Q.8. If yes then from whom you take advice?

Options No. of Respondents

Professional adviser

Friends

Relatives

Magazine Others

Total 75

Q.9. If you invest your money in banks then what type of bank you prefer?

Options No. of Respondents

Public / Government Banks

Private Banks

Commercial Banks

Cooperative Banks

Others

Total 75

Q.10. what kinds of investment return you expect from your investment?

Options No. of Respondents

Avg. Return

Above Avg. Return

Below Avg. Return

None of these

Total 75

Q.11. what is the frequency of investment?

Options No. of Respondents

Once a month

Once a quarter Once a year

Whenever there is enough money

None of these

Total 75

Q.12.What percent of income you invest?

Options

0- 3% of income

3% -5% of income

5%-10% of income

More than 10% of income

Total

No. of Respondents

75

Q.13. How you take investment decision?

Options

With the reference of Friends/Relatives

With the reference of Chartered Account

By reading prospectus and other important documents

With the advice of Agents/portfolio Manager

Total

No. of Respondents

75

Q.14. Over the next 3-5 years, do you expect your annual income to change?

Options No. of Respondents

Increase

Decrease

Remain the same

Total 75

Q.15.What is your Experience in the market?

Options No. of Respondents

Less than a year

1 years

2-3 years

More than 4 years

Total 75

Q.16.What is your Trading Preference?

Options No. of Respondents

Speculation

Investment

Both

Total 75

Q.17. Factors influencing the investment decisions?

Options

Advice Current news from Broker

Reviews in Financial Magazines

Advice from Friends

Self Evaluation

Others

Total

No. of Respondents Q.18. How much Risk is you willing to take?

75

Options No. of Respondents

High

Low

Moderate

Total 75

Q.19. How much loss is you willing to take?

Options

High

Moderate

Low

Total

No. of Respondents 75

Q.20.What is your annual income?

Options

Less than 2 lakh

Between 2 lakh and 4 lakh

Between 4 lakh and 6 lakh

Above6 lakh

Total

No. of Respondents

75

Q.21.What type of investor you are?

Options No. of Respondents

Aggressive

Conservative

Moderate or Balanced

Total 75

Q.22.Which funds in your opinion are performing well?

Options

Templeton

SBI Mutual Fund

BIRLA SUN LIFE Mutual Fund

HDFC Mutual Fund

Total

No. of Respondents

75

Q.23.Which financial instruments are parts of your Investment?

Options No. of Respondents

Government Equity securities

Gold, Silver

Real Estate

Post Office

Others

Total 75

Q.24.Which of the following planed you is insured?

Options

Flexi plan Retirement Plan

Endowment Plan

Capital Multiplier Plan

Total

No. of Respondents

75

Q.25.What is the purpose behind investment?

Options

Wealth creation

Tax saving

Earn Returns

Future expenses

Others

Total

No. of Respondents

75

Q.26.Your preference to various Investment avenues

Options

Shares

Commodity market

Debentures

Insurance

Bank deposits

Post office savings

Total

No. of Respondents

75

Q.27.What is the frequency of your trading?

Options No. of Respondents

Daily

Weekly

Monthly

Every season

occasionally

yearly

Total 75

Q.28.What do you think as the specialty of trading in Commodity market

Options

Price hedging

Regulated marketing

Low risk

Quality products

Total

No. of Respondents

75

Q.29. Your Investment decision is depending on

Options No. of Respondents

Risk Involved

Return they give

Past performance

Future growth

Other factors

Total 75

ANNEXURE-A.3
DATA BASEDAND SURVEY Project is being selected for the purpose to know the concept of the Investment Who invest amount for the person to give more and less risk and tax benefit. Total 75 sample of questionnaire were formed for survey. The survey done in the person who invest the money in various type of investment what they want from the investment and how much time they can invest their money for the specific fund or their respective investment. The survey done for the investor towards investment who involve in this business how they manage their investment and what is their strategy for the next project. Their few difficulties So many people to whom I approached to fill the questionnaire refused to read that, they asked me dictate the questions and options of those questions so they can answer the appropriate option .On behalf of them I tick mark the option what they considered to be select as appropriate option according to them .They dont even rely on the questionnaire and also refuse to give there contact numbers.

S.NO. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.

NAME Aakash Saxena Dr. Rakesh S. Shah Abhishek Rawat Prallad Dave Rounak Satish Khabe Nilesh Subhash Chawar Kunal Dangi Pravi K. Sharma Bavesh Pankaj Pandey Vasant Kumar Vikash Shinde Gourav Chauhan Nikhil More Mayur Jewrker Pradeep Das

CONTACT NO. 9825181711 9822234540 7276910807 9823683601 9730702153 9049989829 020-60707999 9373836662 9860300306 9158335854 8796532132 020-30570545 9711914810 9623161807 9623728929 7875039974

ADDRESS A-5,Classic Garden Katraj,Pune Chaitanya Nagar,Pune Nanapeth,Pune Dhankawadi,Pune Katraj,Pune Dhankawadi,Pune Balaji Nagar,Pune Balaji Nagar,Pune A-3,Classic Garden Katraj,Pune Shop no. 6,Classic Garden Katraj,Pune Flat No.2, Green Park, Pune Ruby Clinic (Mumbai Pune Highway) ,Pune Kothrud,Pune Wonder city Katraj,Pune j Balaji Nagar,Pune Balaji Nagar,Pune

17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56.

Abhisekh Kushwaha Sujit Golpare Akshay Kamble Avinash Kushwaha Ramakant Milan Bhoite Umesh Sakharam Ishant Mukhi Rohan Shankla Rajesh Khabe Sabir Shaikh Antariksh Jawhar Lal Prajapati Ankur Aggarwal Kashish Gupta Anshuman Rakesh Sagar M. Madbhagat Soumitra Sarkar Ravi Nigam Anupam Abhishek Rathi Singh Deepak Goyal Abhijit Sambhu Dayal Meena Khandhu Sanjeev Suresh Sahadev Kapare Vikash Chaurasiya Radhe Shaym Bhosle Sagar Taware Ankush Raj Anjuj Sudir Kumar Pandey Gawdde Nilesh Balaso K.B. Vinay Kumar Godaji Shushank D. Pansar Pradeep Dilip Saste

9823218311 9623720920 7524531567 9823718311 8983038370 9860352881 8975366736 9960754637 7620204829 8806965942 9764265404 9988773850 9323999907 9960160099 8267491181 9432307448 9823705442 9930365193 9579440769 9923202686 9960597654 9423572244 7337371038 9762250067 9960840964 9023192973 9764790924 9975614863 9270448174 9468371258 9479419302 8796304810 9407448323 9730579002 8120886514 9049100855 9579700790 8796955278 9595148085 9689608086 9766952586 8626076176 9699443933

Balaji Nagar,Pune Padmawati,Pune Balaji Nagar,Pune Dhankawadi,Pune Dhankawadi,Pune Classic Garden Katraj,Pune Tanaji Nagar,Pune Rishikesh Socity ,Pune Wonder city Katraj,Pune Datta Nagar,Pune Raj complex (Pune- Satara Road) ,Pune Katraj,Pune Pawan Nagar Vivawadi Upper,Pune Pashan,Pune A-13,Classic Garden Katraj,Pune Jawahar Bekari Dhankawadi,Pune Deccan,Pune Dardewadi Kolhapur,Pune BVP Back Market, Pune Bharti Campus, Pune Kothrud,Pune A-7,Classic Garden Katraj,Pune Market Yard, Pune K.K. Market, Pune Nancy Garden Katraj,Pune Gurudtta Socity Balaji Nagar,Pune Katraj,Pune Aasiyana Hostel Balaji Nagar,Pune Katraj,Pune Katraj,Pune B. link Flat no.104 Lektown,Pune Ambegaon,Pune Wakdewadi Shivaji Nagar,Pune Karve Nagar,Pune Swargate,Pune Bharti Vidya Peet Univercity,Pune Katraj,Pune Shivaji Nagar,Pune Shingad rod Manikbag,Pune Samsung Care Katraj,Pune Katraj,Pune Kadam Plaza Opp. BVP,Pune Ram bhag ,Pune

57. Pratik Patil 58. Akshay Kamble 59. Aditya Sharma

60. 61. 62. 63. 64. 65. 66. 67. 68. 69. 70. 71. 72. 73. 74. 75.

Manminder Pal Singh Ankit Mahipal Dev K. Saxena Lalit Mittal Ashish Sharma Sameer Saikh Rajesh Mendla Santosh Jai Singh Gurdass Mahender Kamble Amol Bhosle Navanath L.M. Dangi Nitin Bendale Sanjay Mahindra

8007279876 9028918753 9896131417 9028556945 8898477328 9887430084 9823705421 9049879670 9823986606 9689621822 9011796820 9950770413 9527624757 9665648139 9370221089 9890284776

Motibagh,Pune Katraj,Pune 512 B. Lake Towan,Pune Market Yard, Pune B-12 Nancy Garden, Pune 104, Chaitanya Nagar,Pune Warje Building Chaitanya Nagar,Pune Green Park Satara Road, Pune Deccan,Pune Katraj,Pune Khed Shirapur,Pune Classic Garden Opp. BVP,Pune Atp. Ranje Tal.-Bhor Dist.- Pune Balaji Nagar Pune-43 Chaitanya Nagar , Dhankawadi Pune Shiroor ,Pune