A STUDY ON COMPARATIVE ANALYSIS OF INVESTMENT

PATTERN OF RURAL AND SEMI URBAN INVESTORS

Project Report

Submitted to the Partial Fulfilment for the Award of the Degree of Masters
of Business Administration from Gautam Group of Colleges, Hamirpur,
(H.P)

SESSION 2016-2017

Submitted to: submitted by:

Gautam Institute of management raman kumar

And technology Hamirpur (H.P.) Roll No. 45MB5013067

Course: M.B.A (4th Sem.)

GAUTAM GROUP OF COLLEGES, HAMIRPUR (H.P)

 Dr. Ashok Kumar Bansal

Director

CERTIFICATE
This is to certify that this report entitled A STUDY ON STUDENT PERCEPTION
TOWARD PROFESSIONAL COURSES IN HAMIRPUR DISTT H.P. for the award of the
Degree of MASTER OF BUSINESS ADMINISTRATION from GAUTAM INSTITUTE
OF MANAGEMENT AND TECHONOLOGY HAMIRPUR by AKANT
CHOUDHARY, ROLLNO 45MB5013067 has been carried out under my supervision
and guidance.

To the best of my knowledge and belief the data & information presented by him/her in the
Project has not been submitted earlier.

Date: Place:
SUNITA JAISWAL

DECLARATION
I, raman kumar, student of post graduate program in Management in the gautam and
technology hamirpur of Himachal Pradesh, hereby declare that I have completed my project
report on comparative analysis of investment pattern of rural and semi urban areas, as a
part of the course requirement.

I further declare that the information presented in this project is true and original to the best
of my knowledge.

Raman kumar
45MB5013100

ACKNOWLEDGEMENT
Achievement is finding out what you would be then doing, what you have to do. The higher
the summit, the harder is the climb. The goal was fixed and we began with a determined
resolved and put in ceaseless sustained hard work. Greater challenge, greater was our effort to
overcome it

It is a pleasure to thank to all those people who made this project possible. This project would
not have been possible without the guidance of my advisor and also help from my friends.

I owe my deepest gratitude to my Advisor, Mr. Chaman Lal Kashyap, for his invaluable
suggestions, guidance and help throughout this study. It is an honor for me to complete this
study under his guidance. He has made available his support in a number of ways. His time-
to-time guidance and incessant support helped me to broaden my outlook on the project. I am
highly obliged for his support throughout the project.

I am grateful to faculty of SBMS who have taught me throughout my master degree without
which I could not have gained the knowledge that I have used to make this project.

I am indebted to many of my friends and participants for their valuable time and help in
collecting the surveys.

RAMAN KUMAR

TABLE OF CONTENTS
S.NO List Of Chapter Page
NO.

Chapter 1 Introduction 1-14

Chapter 2 Literature review 15-

17

Chapter 3 Research Methodologies 18-19

3.1 Introduction 18

3.2 Objectives of the study 18

3.3 Research Process 18

3.4 Data Collection 19

3.5 Research Tools 19

Chapter 4 Data Interpretation 20-35

Chapter 5 Finding, Conclusion and Suggestion 36-37

Chapter 6 Bibliography 38

Chapter 7 Annexure 39-41

LIST OF TABLES AND CHARTS

S.NO LIST OF TABLE Page no.
Table 4 Frequency table of demographics of investor. 20 -21

Table4.1 Frequency table of investors in relation of risk and return 22

Table4.2 Frequency table of investment which investors prefer 23

Table4.3 Frequency table regarding monitoring of investment 24

Table4.4 Frequency table of source of information or investment 25

Table 4.5 Frequency table of policies which the investors own 26

Table 4.6 Frequency table of investors who have taken loan 27

Table 4.7 Frequency table of types of loan investor have taken 28

Table 4.8 Frequency table of rating of investment pattern 29

Table 4.9 Frequency table of Occupation wise analysis 30-31

Table 4.10 Frequency table of Investment experience wise analysis 32-33

Table 4.11 Frequency table of saving pattern wise analysis 34-35

LIST OF FIGURES

S.NO LIST OF FIGURES Page No.

Figure 4.1 Figure of investors in relation of risk and return 22

Figure 4.2 Figure table of investment which investors prefer 23

Figure 4.3 Figure table regarding monitoring of investment 24

Figure4.4 Figure table of source of information or investment 25

Figure4.5 Figure of policies which the investors own 26

Figure 4.6 Figure of investors who have taken loan 27

Figure4.7 Figure table of types of loan investor have taken 28

Figure 4.8 Figure of rating of investment pattern 29

 Chapter-1
INTRODUCTION

Introduction
It is human nature to plan for rainy days. An individual must plan and keep aside some
amount of money for any unavoidable circumstance which might arise in days to come.
Future is uncertain and one must invest wisely to avoid financial crisis in any point of time.

Investment is nothing but goods or commodities purchased today to be used in future or at the
times of crisis. An individual must plan his future well to ensure happiness for himself as well
as his immediate family members. Consuming everything today and saving nothing for the
future is foolish. Not every day is a bed of roses; you never know what your future has in
store for you.

Investment is the commitment of money or capital to purchase financial instruments or other

assets in order to gain profitable returns in the form of interest, income, or appreciation of the
value of the instrument. Investment is related to saving or deferring consumption.

Meaning of Investment:

An investment involves the choice by an individual or an organization such as

a pension fund, after some analysis or thought, to place or lend money in a vehicle,
instrument or asset, such as property, commodity, stock, bond, financial derivatives (e.g.
futures or options), or the foreign asset denominated in foreign currency, that has certain level
of risk and provides the possibility of generating returns over a period of time.

When an asset is bought or a given amount of money is invested in the bank, there is
anticipation that some return will be received from the investment in the future.

Investment Definition in terms of Economics

According to economic theories, investment is defined as the per-unit production of goods,

which have not been consumed, but will however, be used for the purpose of future
production.
Examples of this type of investment are tangible goods like construction of a factory or
bridge and intangible goods like 6 months of on-the-job training.
In terms of national production and income, Gross Domestic Product (GDP) has an essential
constituent, known as gross investment.

Investment Definition in terms of Finance:

In finance, investment refers to the purchasing of securities or other financial assets from
the capital market. It also means buying money market or real properties with high market
liquidity. Some examples are gold, silver, real properties, and precious items.
Financial investments are in stocks, bonds, and other types of security investments. Indirect
financial investments can also be done with the help of mediators or third parties, such as
pension funds, mutual funds, commercial banks, and insurance companies.

What is Important in Financial Investment?

Planning plays a pivotal role in Financial Investment. Dont just invest just for the sake of
investing. Understand why you really need to invest money? Investing just because your
friend has said you to do so is foolish. Careful analysis and focused approach are mandatory
before investing.

Explore all the investment plans available in the market. Go through the pros and cons of
each plan in detail. Analyze the risk factors carefully before finalizing the plan. Invest in
something which will give you the maximum return.

Appoint a good financial planning manager who takes care of all your investment needs.
He must understand your requirement, family income, stability etc to decide the best plan for
you.

One needs to be a little careful and sensible while investing. An individual must read the
documents carefully before investing.

Need for Financial Investment

People invest in order to get more from their money in the future than its current value. The
'future' may be in a couple of weeks or a couple of decades depending on the term of
investment and the investor's intent. Some people use their investment as a form of saving so
that they can eventually make a major purchase. In this case, they expect that while they are
not using the money it is earning more than if they had just put it aside. If you stored cash in a
jar under your bed, the money would eventually lose its worth due to inflation, the decline in
the value of money. If, however, you invested the money in a basic savings account, it would
earn interest corresponding with the rise in inflation, meaning that it would at least be worth
the same amount as when you deposited it.

Investments are also a source of income, especially if you receive money on a regular basis
from them. Many people own investment property that they rent out to business or residential
tenants, where the rent they receive represents all or part of their income. Shares in a
company pay regular returns called dividends when the company makes a profit. We will go
into more detail about types of investment in a later Chapterter, but these are just a couple of
examples where investors outlay money in order to earn an income.

Many people like to invest for retirement, which is a combination of investment as a type of
saving and a type of income. In addition to compulsory superannuation, where the
superannuation company invests money on your behalf and you receive a return upon
retirement, you might choose to make private investments to boost your finances for
retirement. Investors in superannuation want to ensure financial security when they are no
longer working and the extra return may mean that they can maintain a reasonable standard
of living.

In some cases you may wish to help others with your investment as well as make money for
yourself. This is especially true of ventures that require capital to start a business, such as if
you invest in a company via shares or debentures, where a company assumes a debt to the
investor. In this instance, your investment helps start the company in the hope that you will
receive a return if they succeed.
If you think about it, the act of not investing is already a risk to your capital. Not giving
yourself the opportunity to grow your wealth is almost certainly as risky as being in the
market, and is more risky over longer time horizons.

Financial reasons

To generate on your idle resources

To earn returns.

To protect and increase capital.

To have money for important events.

Make a provision for future uncertainties.

Other Reasons

Tax Savings

2. Income

3. Ease of Withdrawal

Risk and Return

Investment risk is defined as the probability or likelihood of occurrence of losses relative to
the expected return on any particular investment. Definition: Investment risk can be defined
as the probability or likelihood of occurrence of losses relative to the expected return on any
particular investment. In simple terms, risk is the probability of loss. Your knowledge in
investing is never complete until you learn about risk and its relation with returns.

When we talk from the angle of an investor, risk is the combined effect of

Probable Loss of money invested.

The estimated loss of interest, should the money be invested in secured deposits.

Inflation that reduces your moneys worth.

When you invest, deviations can happen from the expected outcome. That deviation can be
positive or negative. If deviation happens to the positive side, that would be considered as
windfall gains. The negative part is called risk. Risk is part and parcel of every investment.
Every type of investment involves risk of varying degrees, which can be very low in the case
of government bonds to high as in the case of stocks. The above example also brings to light
the relation between risk and return. If you target for a high return, there is an equal
possibility of a high loss. So, higher the risk; higher the returns which means that risk and
returns are directly related.

There are mainly two types of risks:

Systematic Risk - Systematic risk influences a large number of assets. A significant political
event, for example, could affect several of the assets in your portfolio. It is virtually
impossible to protect yourself against this type of risk.

Unsystematic Risk - Unsystematic risk is sometimes referred to as "specific risk". This kind
of risk affects a very small number of assets. An example is news that affects a specific stock
such as a sudden strike by employees. Diversification is the only way to protect our self from
unsystematic risk.

OTHER TYPES OF RISKS

Interest Rate Risk

Interest rate risk is the possibility that a fixed-rate debt instrument will decline in value as a
result of a rise in interest rates. Whenever investors buy securities that offer a fixed rate of
return, they are exposing themselves to interest rate risk. This is true for bonds and also for
preferred stocks.

Business Risk
Business risk is the measure of risk associated with a particular security. It is also known as
unsystematic risk and refers to the risk associated with a specific issuer of a security.
Generally speaking, all businesses in the same industry have similar types of business risk.
But used more specifically, business risk refers to the possibility that the issuer of a stock or a
bond may go bankrupt or be unable to pay the interest or principal in the case of bonds. A
common way to avoid unsystematic risk is to diversify - that is, to buy mutual funds, which
hold the securities of many different companies.

Credit Risk
This refers to the possibility that a particular bond issuer will not be able to make expected
interest rate payments and/or principal repayment. Typically, the higher the credit risk, the
higher the interest rate on the bond.

Taxability Risk
This applies to municipal bond offerings, and refers to the risk that a security that was issued
with tax-exempt status could potentially lose that status prior to maturity. Since municipal
bonds carry a lower interest rate than fully taxable bonds, the bond holders would end up
with a lower after-tax yield than originally planned.

Call Risk
Call risk is specific to bond issues and refers to the possibility that a debt security will be
called prior to maturity. Call risk usually goes hand in hand with reinvestment risk, discussed
below, because the bondholder must find an investment that provides the same level of
income for equal risk. Call risk is most prevalent when interest rates are falling, as companies
trying to save money will usually redeem bond issues with higher coupons and replace them
on the bond market with issues with lower interest rates. In a declining interest rate
environment, the investor is usually forced to take on more risk in order to replace the same
income stream.
Inflationary Risk
Also known as purchasing power risk, inflationary risk is the chance that the value of an asset
or income will be eroded as inflation shrinks the value of a country's currency. Put another
way, it is the risk that future inflation will cause the purchasing power of cash flow from an
investment to decline. The best way to fight this type of risk is through appreciable
investments, such as stocks or convertible bonds, which have a growth component that stays
ahead of inflation over the long term.
Liquidity Risk
Liquidity risk refers to the possibility that an investor may not be able to buy or sell an
investment as and when desired or in sufficient quantities because opportunities are limited. A
good example of liquidity risk is selling real estate. In most cases, it will be difficult to sell a
property at any given moment should the need arise, unlike government securities or blue
chip stocks.

Market Risk
Market risk, also called systematic risk, is a risk that will affect all securities in the same
manner. In other words, it is caused by some factor that cannot be controlled by
diversification. This is an important point to consider when you are recommending mutual
funds, which are appealing to investors in large part because they are a quick way to
diversify. You must always ask yourself what kind of diversification your client needs.

Reinvestment Risk
In a declining interest rate environment, bondholders who have bonds coming due or being
called face the difficult task of investing the proceeds in bond issues with equal or greater
interest rates than the redeemed bonds. As a result, they are often forced to purchase
securities that do not provide the same level of income, unless they take on more credit or
market risk and buy bonds with lower credit ratings. This situation is known as reinvestment
risk: it is the risk that falling interest rates will lead to a decline in cash flow from an
investment when its principal and interest payments are reinvested at lower rates.

Social/Political / legislative Risk

Risk associated with the possibility of nationalization, unfavorable government action or
social changes resulting in a loss of value is called social or political risk. Because the U.S.
Congress has the power to change laws affecting securities, any ruling that results in adverse
consequences is also known as legislative risk.

Types of Investors

Investors can be qualified into various categories which are as follows:

 Only Savers: Majority investors in India are from this category. When you say equity
they will look at you as if you were some Andaman tribal people lecturing on GPRS.
They never invested a single penny in equities. Their answer to equity is equity is
risky so why take the risk. They are happy with what they are getting but not greatly
thrilled, all the same.

Regular Investor: This is a rare breed. They have a long term view over equity. They
will never discuss small market events. They are also a bit mechanical in investing.
They invest when they have a surplus and withdraw when in need. They are
convinced over the fact that equity will beat all other investments in long run.
Generally you feel very comfortable in their company as they understand finances &
talk sensibly.

Window shoppers: They will be the first to read or get information over an investment
but they will never participate in markets. They will constantly float opinions and talk
about personal finance but will not dare to risk own money. He is the non playing
captain who will never dare to sweat himself but would be the first one to talk about
strategies.

Seasonal Traders: These are experienced people but who have earned nothing from
the investments. These are generally close to employees of trading house or investing
professionals. They live in a fantasy that all the first news comes to them. They
show they are waiting for the right opportunity to make a killing in the markets. They
are irregular investors and have high volumes of trade but what about earnings??
Keep guessing.

Scapegoats: He is basically a friend of financial product sellers. Agents complete

majority of their targets form these investors. He takes advice from all from
colleagues, panwala, fellow bus travelers etc. Absolutely, no discrimination at all. He
is typical 9 to 5 person busy earning money and managing his daily chores thinking
he would be rich someday. Brokers enjoy their money.

FACTORS EFFECTING INVESTMENT

1.Behavioral factors:

a) Heuristic factors: These factors explain the way investor thinks& how they organize the
information.

b) Emotional factors: These factors explain the way investors feel about the information.

c) Herd behavior: Herding is the tendency of investors behavior to follow the others
actions.

Contextual factors: These factors are suggested by the professionals& contextual

sources which include stock brokers, financial consultants& investment advisors.
 Along with these, there are certain market factors& demographic factors such as age,
gender, income, education& experience etc. were explored from the existing literature

OTHER FACTORS

1 Past market trends

Sometimes history repeats itself; sometimes markets learn from their mistakes. You need
to understand how various asset classes have performed in the past before planning your
finances.
2 Your risk appetite
The ability to tolerate risk differs from person to person. It depends on factors such as
your financial responsibilities, your environment, your basic personality, etc. Therefore,
understanding your capacity to take on risk becomes a crucial factor in investment
decision making.
3 Investment horizon
How long can you keep the money invested? The longer the time-horizon, the greater are
the returns that you should expect. Further, the risk element reduces with time.
4 Investible surplus
How much money are you able to keep aside for investments? The investible surplus
plays a vital role in selecting from various asset classes as the minimum investment
amounts differ and so do the risks and returns.
5 Investment need
How much money do you need at the time of maturity? This helps you determine the
amount of money you need to invest every month or year to reach the magic figure.

TYPES OF FINANCIAL INVESTMENT

An individual can invest in any of the following:

EQUITIES

Equities are a type of security that represents the ownership in a company. Equities are traded
(bought and sold) in stock markets. Alternatively, they can be purchased via the Initial Public
Offering (IPO) route, i.e. directly from the company. Investing in equities is a good long-term
investment option as the returns on equities over a long time horizon are generally higher
than most other investment avenues. However, along with the possibility of greater returns
comes greater risk.

ADVANTAGES

An investor is entitled to receive a dividend from the company. It is one of the two
main sources of return on his investment.
The other source of return on investment apart from dividend is the capital gains.
Gains which arise due to rise in market price of the share.
 Liability of shareholder or investor is limited to the extent of the investment made. If
the company goes into losses, the share of loss over and above the capital investment
would not be borne by the investor.
By investing in the company, the shareholder gets ownership in the company and
thereby he can exercise control. In official terms, he gets voting rights in the company.
An investor of equity share is the owner of the company and so is the owner of the
assets of that company. He enjoys a share of the incomes of the company. He will
receive some part of that income in cash in the form of dividend and remaining capital
is reinvested in the company.
MUTUAL FUNDS

A mutual fund allows a group of people to pool their money together and have it
professionally managed, in keeping with a predetermined investment objective. This
investment avenue is popular because of its cost-efficiency, risk-diversification, professional
management and sound regulation. You can invest as little as Rs. 1,000 per month in a mutual
fund. There are various general and thematic mutual funds to choose from and the risk and
return possibilities vary accordingly. Mutual funds are an easy and tension free way of
investment and it automatically diversifies the investments. A mutual fund is an investment
mix of debts and equity and ratio depending on the scheme. They provide with benefits such
as professional approach, benefits of scale and convenience. In mutual funds also, we can
select among the following types of portfolios:

Equity Schemes
Debt Schemes
Balanced Schemes
Sector Specific Schemes etc.

ADVANTAGE

We pay a management fee as part of your expense ratio, which is used to hire a
professional portfolio manager who buys and sells stocks, bonds, etc. This is a
relatively small price to pay for help in the management of an investment
portfolio.
As dividends and other interest income is declared for the fund, it can be used to
purchase additional shares in the mutual fund, thus helping your investment grow.
A reduced portfolio risk is achieved through the use of diversification, as most mutual
funds will invest in anywhere from 50 to 200 different securities - depending on their
focus. Several index stock mutual funds own 1,000 or more individual stock
positions.
BONDS
Bonds are fixed income instruments which are issued for the purpose of raising capital. Both
private entities, such as companies, financial institutions, and the central or state government
and other government institutions use this instrument as a means of garnering funds. Bonds
issued by the Government carry the lowest level of risk but could deliver fair returns.

Advantages

The biggest advantage of investing in bonds is that there are very less chances that
you will lose out on your investment. So, people who do not believe in taking undue
risks with their money should invest in bonds. People who are nearing retirement and
thus, cannot afford to risk their hard-earned money, will find dependable bond
investments very suitable. When compared to other safer forms of investments, such
as saving accounts in banks, bonds pay a much higher rate of interest. So, instead of
keeping money in a bank, people can invest in bonds and earn a good interest rate.

Secondly, with bonds, there is no anticipation and anxiety over when the principal
amount will be paid or when the interest will be received as everything is pre-decided
and the investor is aware of the maturity date and the time when interest is due on his
investment.

Bonds do not need constant monitoring like some other investment instruments.
Lastly, certain bonds, such as municipal bonds, can sometimes be exempt from
income tax. This adds on to the profits earned through them.

PPF

The Public Provident Fund (PPF) Scheme, 1968 is a tax-free savings avenue that was
introduced by the Ministry of Finance (MoF) in India in the year 1968. Interest earned on
deposits in the PPF account is not taxable. Deposits made towards PPF accounts can be
claimed as tax deductions. This makes the PPF Scheme one of the most tax efficient
instruments in India. It was launched to encourage savings among Indians in general,
especially to encourage them to create a retirement corpus. PPF is one investment option
which almost every salaried person or businessmen consider when one makes his or her
investment plan. Given below are some of the advantages and disadvantages of PPF

Advantages
It provides tax free returns because there is no tax on interest income which one
derives from this PPF which is the case with fixed deposit.

It provides good return in the range of 8 to 9 percent and since it is government

backed scheme it is very safe investment as compared to equity.

This can be started with minimum amount of 500 rupees and therefore even people
who are in lower income group can also start it.
 It can be opened in the name of minor along with guardian and if child is above 18
years of age then no guardian is needed therefore an individual who has having 2
adult children can open 4 accounts, 1 in name of himself, 1 in the name of his wife
and other 2 in name of his children.

INSURANCE

Insurance is a means of protection from financial loss. It is a form of risk management

primarily used to hedge against the risk of a contingent, uncertain loss.

An entity which provides insurance is known as an insurer, insurance company, or insurance

carrier. A person or entity who buys insurance is known as an insured or policyholder. The
insurance transaction involves the insured assuming a guaranteed and known relatively small
loss in the form of payment to the insurer in exchange for the insurer's promise to compensate
the insured in the event of a covered loss. The loss may or may not be financial, but it must
be reducible to financial terms, and must involve something in which the insured has an
insurable interest established by ownership, possession, or preexisting relationship. The
insured receives a contract, called the insurance policy, which details the conditions and
circumstances under which the insured will be financially compensated. The amount of
money charged by the insurer to the insured for the coverage set forth in the insurance policy
is called the premium. If the insured experiences a loss which is potentially covered by the
insurance policy, the insured submits a claim to the insurer for processing by a claims
adjuster.

There are two basic types of life insurance policies viz. Traditional Whole Life and Term Life
Insurance. A whole life is a policy you pay till death of the policy holder and term life is a
policy for a fixed amount of time.

The basic types of life insurance policies are:

Term insurance
Endowment plans
Unit linked insurance plans (ULIP)
Whole life policy
Money back policy

ADVANTAGES
 Life indemnity is one of the ideal tools for retirement preparation . Funds that are earned and
hoarded during the lifetime are utilized to supply a firm source of returns during the
retirement period.

Customary policies enable prospect to share in the monetary increase without taking
the risk of investment. The investment revenue is shared out among the policyholders
through yearly announcement of bonus and/or dividends.

Because life is filled with uncertainties, life insurance guarantees that your dear ones
continue to have monetary back up in case of any unexpected incident that may lead
to your detriment or demise.

Insurance plans offer tax-benefits that are appealing for both at the entry and exit
period under the majority of the plan.

POST OFFICE DEPOSITS

Many nations' post offices operated or continue to operate postal savings systems to provide
depositors who do not have access to banks a safe, convenient method to save money and to
promote saving among the poor The advantage with post-office deposits is that it offers a
fixed rate of return for the duration of the deposit, while banks constantly review their
recurring deposit rates.

GOLD ETF

Gold exchange-traded products are exchange-traded funds (ETFs), closed-end funds (CEFs)
and exchange-traded notes (ETNs) that aim to track the price of gold. Gold exchange-traded
products are traded on the major stock exchanges including Zurich, Mumbai, London, Paris
and New York. As of 25 June 2010, physically backed funds held 2,062.6 tonnes of vaulted
gold in total for private and institutional investors. Each gold ETF, ETN, and CEF has a
different structure outlined in its prospectus. Some such instruments do not necessarily hold
physical gold. For example, gold ETNs generally track the price of gold using derivatives

Advantages

Gold ETFs provide an opportunity to investors to accumulate gold over a given period
of time. Since it can be purchased in small quantities, one can plan the procurement as
per future requirements, say, for the marriage of children, etc.
There is no risk of theft and one need not worry about the storage cost (as in case of
physical gold) because such units are held in demat or paper form. In the case of
physical gold, one ends up paying extra for making charges as well, but there is no
extra charge applicable in gold ETFs. When needed, one can exchange them in
multiples of 1 kg units of 0.995 purity.

DEPOSITS
 Investing in bank or post-office deposits is a very common way of securing surplus funds.
These instruments are at the low end of the risk-return spectrum. A bank account is probably
not on your list of hot investment ideas, but the various options a bank offers might fit some
of your needs. Banks pay different interest rates on different accounts, and you typically earn
more the longer you are willing to let your money sit. While security is an important benefit
of a bank account, limited profit potential is one drawback to this type of investment.

ADVANTAGES

A bank account is one of the safest places you can invest your cash. As long as your
bank is insured by the Federal Deposit Insurance Corp., money in a savings account,
CD and certain other accounts is insured up to $250,000 per bank. If your bank goes
under, the government has you covered. For example, say you have $150,000 in a
savings account and another $50,000 in a CD in the same bank. You are under the
$250,000 limit and cannot lose any of your investment

The interest you earn in a bank account is typically lower than the returns of other
investments. When you factor in income taxes on interest, your money might fail to
keep up with inflation, or the gradual increase in the prices of goods and services. For
example, if you earn 4 percent annually in a savings account, pay one-third of that in
taxes and inflation is 3 percent a year, your moneys purchasing power will erode

CASH EQUIVALENTS

These are relatively safe and highly liquid investment options. Treasury bills and money
market funds are cash equivalents.

NON-FINANCIAL INSTRUMENTS

REAL ESTATE

With the ever-increasing cost of land, real estate has come up as a profitable investment
proposition. Every investor has some part of their portfolio invested in real assets. Almost
every individual and corporate investor invest in residential and office buildings respectively.
Apart from these, others include:
Agricultural Land
Semi-Urban Land
Commercial Property
Raw House
Farm House etc
ADVANTAGES
some of the benefits of having real estate in your portfolio are as follows:
Diversification Value - The positive aspects of diversifying your portfolio in terms
of asset allocation are well documented. Real estate returns have relatively low
correlations with other asset classes (traditional investment vehicles such as stocks
and bonds), which adds to the diversification of your portfolio.
Inflation Hedge - Real estate returns are directly linked to the rents that are received
from tenants. Some leases contain provisions for rent increases to be indexed to
inflation. In other cases, rental rates are increased whenever a lease term expires and
the tenant is renewed. Either way, real estate income tends to increase faster in
inflationary environments, allowing an investor to maintain its real returns
Ability to Influence Performance real estate is a tangible asset. As a result, an investor
can do things to a property to increase its value or improve its performance. Examples
of such activities include: replacing a leaky roof, improving the exterior and re-
tenanting the building with higher quality tenants. An investor has a greater degree of
control over the performance of a real estate investment than other types of
investments.

GOLD

The 'yellow metal' is a preferred investment option, particularly when markets are volatile.
Today, beyond physical gold, a number of products which derive their value from the price of
gold are available for investment. These include gold futures and gold exchange traded funds.

Advantages:

Gold as an asset class is pretty much unrelated to the movement in broader

market and hence provides true diversification in your portfolio

Gold is generally also used as hedge against inflation and socio-economic

unrest. At the end of day currencies have value as long as there are strong
government supporting them. Gold is accepted as store of value almost
everywhere in the world.

Gold has historically easily beaten inflation and in the long run should
continue to the same.

.
.

Chapter-2

REVIEW OF LITERATURE

Many Organizations and individuals conducted several studies on the various aspects of the
capital markets in the past. These studies were mainly related to various instruments of
capital market, shareholding pattern, new issue market and scope, market efficiency, risk and
return, performance and regulation of investments. However, not much of research was done
on investment patterns on semi urban and rural areas. The related studies with the topic are as
follows:

Jani and Jain (2014) has conducted a research on measuring buying behavior of rural
investors for mutual fund among 100 respondents from Valsad city and surrounding rural
areas. This study clearly stated that demographical factor has greater influence on buying
behavioral pattern of rural investors. risk is also the main factor affecting buying behavior of
investors

Avinash Kumar Singh (2006) The study entitled "Investment Pattern of People" has been
undertaken with the objective, to analyze the investment pattern of people in Bangalore city
and Bhubaneswar. It is concluded that in Bangalore investors are more aware about various
investment avenues & the risk associated with that. All the age groups give more important to
invest in equity & except people those who are above 50 give important to insurance, fixed
deposits and tax saving benefits. But in Bhubaneswar, investors are more conservative in
nature and they prefer to invest in those avenues where risk is less like bank deposits, small
savings, post office savings etc.

Sudalaimuthu and senthilkumar (2008) studied about investors perception towards mutual
fund investments taking into account the investors reference towards the mutual fund sector,
scheme type, purchase of mutual fund units, level of risks undertaken by investors, source of
information about the market value of the units etc. The result of these studies through
satisfactory on the investors perception about the mutual funds and the factors determining
their investment decisions and preferences. The study will be useful to the mutual fund
industry to understand the investors perception towards mutual funds investments and the
study would also be informative to the investors.

Sunil Gupta (2008) conducted study on the investment pattern among different groups in
Shimla. . The study showed that the more investors in the city prefer to deposit their surplus
in banks, post offices, fixed deposits, saving accounts and different UTI schemes, etc.. As far
as the investments are concerned, people put their surplus in banks, past offices and other
government agencies. Most of the horticulturists in Shimla city who belong to Apple belt
though being rich have a tendency of investing then surpluses in fixed deposits of banks,
provident funds, Post Office savings, real estates, etc. for want of safety and suitability of
returns.

Manish Mittal and Vyas (2008) stated Investors have certain cognitive and emotional
weaknesses which come in the way of their investment decisions. Over the past few years,
behavioral finance researchers have scientifically shown that investors do not always act
rationally.. This paper classifies Indian investors into different personality types and explores
the relationship between various demographic factors and the investment personality
exhibited by the investors.

Somasundaram (1998) has found that bank deposits and chit funds were the best known
modes of savings among investors and the least known modes were Unit Trust of India (UTI)
schemes and plantation schemes..

Jayaraman (1987) has stated that instead of issuing special bonds for unearthing black money
the Government of India can encourage investment of black money in various small savings
schemes. He further stressed the need to draft the assistance of voluntary agencies at the
school and college level for further mobilization of savings.

The study by Mukhi (1989) has revealed that NSC has been one of the most popular tax
savings instruments in this country. He has stated that contractor and others who have to
provide security while bidding for contracts finds it extremely convenient to buy NSC and
pledge these to the appropriate authorities while earning 12 per cent per annum on the
pledged securities.
Rajarajan (1999) studied the behavior of Chennai investors and found that life cycle stage of
individual investors is an important variable in determining the size of the investments in
financial assets and the percentage of financial assets in risky category.

Gavini and Athma (1999) found that social considerations, tax benefits, and provision for old
age were the reasons cited for saving in urban areas, whereas to provide for old age etc. was
the main reason in rural areas.

Karthikeyan (2001) conducted study on small investors perception on Post office saving
schemes and found that there was significant difference among the four age groups, in the
level of awareness for KisanVikasPatra (KVP), National Savings Scheme (NSS), and Deposit
Scheme for Retired Employees (DSRE). The overall score confirmed that the level of
awareness among investors in the old age group was higher than in those of younger age
group. No differences were observed among male and female investors.

Swarup (2003) studied on the decisions taken by the investors while investing in the primary
markets. In her study she indicated that investors give importance to their own analysis as
compared to their brokers advice

Mittal and Vyas (2008) observed that investors have certain cognitive and emotional
weaknesses which come in the way of their investment decisions.

Over the past few years, behavioral finance researchers have scientifically shown that
investors do not always act rationally. Tripathi (2008) examines the perceptions, preferences
and various investment strategies in Indian stock market. Study reveals that investors use
both fundamental as well as technical analysis while investing in Indian stock market. A
report published by AMFI (2009) brought about the fact that mutual fund investing by
households has more than doubled from 3.7 per cent in 2006 to 7.8 per cent in 2008 which
shows a shift of investors from traditional investments to mutual funds to earn better returns.

Ajmi (2008) used a questionnaire to know determinants of risk tolerance of individual

investors and collected responses from 1500 respondents. He concluded that the men are less
risk averse than women, less educated investors are less likely to take risk and age factor is
also important in risk tolerance and also wealthy investors are more risk tolerance than the
less wealthy investors.

Ang (2009) examined the dynamic relationship between the domestic savings and investment
rates in India over the period 1950-2005 by controlling for the level of financial
liberalization. The results indicate that greater financial liberalization enables more domestic
resources to be channeled to investment activities.

There are so many studies covering the choice of investment in different countries as well as
Indian market also. A very few studies have covered the semi urban and rural areas. This was
the major consideration governing the choice of topic for project work.. Relevant variables
are identified to find the determinant after thorough review of literature.
 CHAPTER 3

Research Methodology

3.1 Introduction

The Chapterter discusses the objectives of study, the procedure used to conduct the research.
This included how the data was collected, sample drawn and how the information was
interpreted that is the research design, target population, sampling, data collection
instruments and procedures.

3.2 Objectives of the study

The main objectives of the study are:

To understand all about different financial instruments available in rural and semi
urban areas

To find out how the investors get information about various segments

To know the saving habits of the consumers.

To know in which type of security they want to invest.

To know the return and benefit they expect from investment

3.3 Research Process

 To Study Comparative Analysis of Investment Pattern of Rural and Semi Urban Investors

Research Problem
To Study Comparative analysis

Research Approach: Research approach call for designing the game plan of gathering
the data to search same information on the basis of which management can make some
logical decisions. In other words research design is a catalogue of the various phases and
facts relating to the formulation of a research effort. It is the arrangement of conditions
for collecting and analysis of data in a manner that aims to combine relevance to the
research purpose with economy in procedure. The research conducted by me is
exploratory Research

Sample Frame:

Sample Unit: investors of semi urban and rural areas of Dharamshala

Sample Size:

Gender N
Semi urban 60
Rural 60
Total 120

Sampling Technique: Purposive sampling

3.4 Data Collection

Primary data collection: Primary data is collected through

Questionnaire

Secondary data collection: secondary data is collected through

Books

Magazines

Newspaper

internet
3.5 Research Tools

Descriptive statistics tools are used (mean, percentage) is used to analyze data.

Bar diagram and charts are used to represent data.

3.6 LIMITATION OF THE STUDY

Handling and analyzing such a data needs a lot of time and resources.

Reluctance of the people to provide complete information can affect the validity of
responses.

Due to time and cost constraints study is concerned in only area of Dharamshala

Lack of knowledge in customer

Information can be biased.

CHAPTER-4

ANALYSIS AND INTERPRETATION

4. Chapter Overview:
This Chapterter presents the analysis of the data collected. Data is analyzed using SPSS
version 21.0 and MS word. There were various questions in the questionnaire representing
the different variables related to investment pattern of investors which are as follows:

TABLE 4 FREQUENCY TABLES OF DEMOGRAPHICS OF Investors.

S.NO Demographics Frequency %age

1 Gender Female 34 71.7%
Male 86 28.3%
Total 120 100%
2 Education Illiterate 8 6.7%
level up to matric 13 10.8%
10+2 18 15.0%
Graduate 35 29.2%
Higher
36 38.3%
Total 120 100%
3 Age group Up to 30 39 32%
30-40 28 23.3%
40-50 23 19.2%
50-60 23 19.2%
Above 60 7 5.8%
Total 120 100%
4 Marital Un-married 39 32.5%
status Married 81 67.5%
Total 120 100%

5 occupation Self employed 34 28.3

Government service 44 36.7
Labor 17 14.2
Private service 25 20.8

Total 120 100%

6 Annual Below I lakh 19 15.8%
income 1-3 lakh 49 40.8%
3-5 lakh 29 24.2%
5 lakh & above 23 19.2%

120 100%
7 Tax payee Yes 57 47.5%
No 63 52.5%

Total 120 100%

8 residence Rural 59 49.2%
Semi urban 61 50.8%

Total 120 100%

9 Investment One year 35 29.2%
experience 2 to 5 year 40 33.3%
5 to 10 year 24 20.0%
More than 10 years 21 17.5%

Total 120 100

Table 4. I preferred to invest in the financial instruments/ securities which gave

Table 4.1

Frequency Percent Valid Percent

high risk/ high return 27 22.5 22.5
low risk / low return 16 13.3 13.3
high risk/ low return 1 .8 .8
low risk/ high return 76 63.3 63.3
Total 120 100.0 100.0

Figure 4.1
INTERPRETATION

The above graph and table depicts that 63% of the investor wants to invest in the securities
which provide low risk and high return and 22% of the people likes to invest in the securities
providing high risk and high return.13% of the people invest in low risk and low return
securities.

Table 4.2 Where do you generally prefer to invest in?

Frequency Percent Cumulative Percent

PPF 14 11.7 11.7
Fixed deposit 44 36.7 48.3
Mutual funds 14 11.7 60.0
Real estate 6 5.0 65.0
Gold ETF 3 2.5 67.5
LIC 28 23.3 90.8
Traditional source 11 9.2 100.0
Total 120 100.0

Figure 4.2
INTERPRETATION

The above graph and table depicts that 36.7% of the investors prefers to invest in fixed
depsits.lic is also a major source of investment for investors.PPF and mutual funds are also
preferred by investors for investment

4.3How Frequently do you monitor your investment?

Table 4.3

Frequency Percent Cumulative Percent

Daily 6 5.0 5.0
Monthly 40 33.3 38.3
Quarterly 28 23.3 61.7
Yearly 46 38.3 100.0
Total 120 100.0

Figure 4.3
INTERPRETATION
The graph and the table clearly depicts that 38% of the people monitors their investment on
yearly basis where as 33% of the people monitor their investment on monthly basis.23% of
the people monitor their investment quarterly.

4.4 Please Select the following sources of information for your investment?
Table4.4

Frequency Percent Cumulative Percent

Magazine 14 11.7 11.7
national newspaper 20 16.7 28.3
local news paper 5 4.2 32.5
Friends 20 16.7 49.2
Relatives 13 10.8 60.0
Tv 13 10.8 70.8
Radio 1 .8 71.7
Internet 24 20.0 91.7
Any other 10 8.3 100.0
Total 120 100.0

Figure 4.4
INTERPRETATION
The above data and figure shows that internet is a major source of information for investors.
National newspaper and friends share the same percentage that is 16.7% for creating
awareness. Magazines, Newspaper and television are also a major source for creating
awareness.

4.5 Which of the following planning policies you own?

Table 4.5

Frequency Percent Valid Percent

child planning 19 15.8 15.8
education planning 22 18.3 18.3
retirement planning 24 20.0 20.0
tax planning 11 9.2 9.2
Others 44 36.7 36.7
Total 120 100.0 100.0

Figure 4.5
INTERPRETATION
The data and the figure clearly depicts that 36% of the people favor to invest in other
planning policies.20% of the people invest in retirement planning policies. Education
planning policies and children planning policies are also preferred by investors.

4.6 Have you taken any loan ?

Table 4.6
Frequency Percent Cumulative Percent
Yes 53 44.2 44.2
No 67 55.8 100.0
Total 120 100.0

Figure 4.6
INTERPRETATION

The data and the figure clearly depicts that 55.8% of the investors have not taken loan from
bank and 44.2 % of the people have taken loan from the bank.

4.7 If yes then tick applicable

Table 4.7
Frequency Percent Cumulative Percent
NO 67 55.8 55.8
housing loan 25 20.8 76.7
vehicle loan 16 13.3 90.0
education loan 4 3.3 93.3
business loan 7 5.8 99.2
marriage loan 1 .8 100.0
Total 120 100.0

Figure 4.7
INTERPRETATION
This data and figure signifies that 55.8% of the investors have not taken loan from the bank.
out of 44.2%, 20.8% of investors prefers to take housing loans and 13% of the investors likes
to take vehicle loan.

4.8 According to you, which one do you rate as the best investment instrument?

Table 4.8
Frequency Percent Cumulative Percent
saving bank 35 29.2 29.2
fixed deposit 38 31.7 60.8
Shares 6 5.0 65.8
Debentures 3 2.5 68.3
gold/silver 7 5.8 74.2
postal savings 9 7.5 81.7
real estate 3 2.5 84.2
Insurance 16 13.3 97.5
Others 3 2.5 100.0
Total 120 100.0

Figure 4.8
INTERPRETATION
This data and figure depicts that fixed deposits and saving bank account are considered as
best financial securities/instruments. Insurance and postal savings are also favored by
investors
Table 4.9 OCCUPATION WISE ANALYSIS

Description Occupation F Mean Overall Levens Brown Sig

mean Stat. Forsythe
prefer to self
34 3.76
invest in employed
short term government
44 3.23
investment services
Labor 17 3.29 3.47 .003 2.751* .048
private
25 3.60
service
prefer to self
34 3.53
invest in employed
long term government
44 3.82
investment services
Labor 17 3.59 3.58 .069 1.965 .123
private
25 3.24
service
return is the self
34 3.91
purpose employed
government 44 4.20
 behind my services 1.007 .392
investment Labor 17 3.82
private 4.00 .891
25 3.88
service
liquidity is self
34 3.53
the purpose employed
behind my government
44 3.43
investment services
Labor 17 3.53 3.49 .025 .106* .956
private
25 3.52
service
tax saving self
34 2.82
is the employed
purpose government
44 3.80
behind my services 3.12 .516 18.865 .000
investment Labor 17 1.59
private
25 3.36
service

INTERPRETATION

Investors differentiated on the basis of age have a neutral opinion regarding

preference in short term investment. The self-employed and investors having
private jobs like to invest in short term securities. The significant value of test
of homogeneity is less than 0.05 which means there is data variation. In
Robust test the significant difference is .048 which means there is significant
difference in the mean as well as responses of different groups.

Investors agree to the fact that they want to invest in long term investments.
Government employees want to invest in these securities. The significant
value in test of homogeneity is more than 0.05 which means there is no data
variation. In test of ANOVA the significant value is .123 which means
significant difference doesnt exists in the mean as well as the responses of
different groups.

Investors agree that return is the purpose behind their investment. All the
investors of different occupation group agree to the statement. The significant
value in test of homogeneity is more than 0.05 which means there is no data
variation. In test of ANOVA the significant value is .392 which means
significant difference doesnt exists in the mean as well as the responses of
different groups.

Investors have a neutral opinion about liquidity as a purpose for investment.

But self-employee believes in the fact that liquidity is the purpose behind their
investment. The significant value of test of homogeneity is less than 0.05
which means there is data variation. In Robust test the significant difference
 is .956 which means there is a lack in significant difference in the mean as
well as responses of different groups.

Investors have a neutral opinion about tax saving as a purpose for investment.
But government employees believe that tax saving is the reason behind their
investment. . The significant value in test of homogeneity is more than 0.05
which means there is no data variation. In test of ANOVA the significant value
is .000 which means significant difference does exists in the mean as well as
the responses of different groups

Table 4.10 INVESTMENT EXPERIENCE WISE ANALYSIS

Description Investment F Mean Overall Levens Brown Sig.

experience mean Stat. Forsythe
one year 35 3.54
prefer to 2 to 5
40 3.53
invest in years
short term 5 to 10
24 3.54 .343 1.023 .385
investment years 3.47
more than
21 3.14
10 years
one year 35 3.14
prefer to 2 to 5
40 3.53
invest in years
.001
long term 5 to 10 3.58 6.067* .001
24 3.96
investment years
more than
21 4.00
10 years
return is the one year 35 3.91
purpose 2 to 5
40 4.15
behind my years
investment 5 to 10
24 4.00 .292 .527 .665
years 4.00
more than
21 3.86
10 years
liquidity is one year 35 3.43
 the purpose 2 to 5
40 3.58
behind my years
investment 5 to 10
24 3.46 .734 .194 .900
years 3.49
more than
21 3.48
10 years
Tax saving one year 35 2.54
is the 2 to 5
40 3.13
purpose years 3.12
behind my 5 to 10
24 3.63 .676 4.493 .005
investment years
more than
21 3.48
10 years

INTERPRETATION

Investors differentiated on the basis of investment experience have a neutral

opinion regarding preference in short term investment. Investors having
experience of 1 year like to invest in short term securities. The significant
value in test of homogeneity is more than 0.05 which means there is no data
variation. In test of ANOVA the significant value is .385 which means
significant difference doesnt exists in the mean as well as the responses of
different groups

Investors agree to the fact that the want to invest in long term investments.
Investors having experience more than 10 years want to invest in these
securities. The significant value of test of homogeneity is less than 0.05 which
means there is data variation. In Robust test the significant difference is .00
which means there is significant difference in the mean as well as responses of
different groups

Investors agree that return is the purpose behind their investment. All the
investors having experience of 2 to 5 years agree to the statement. The
significant value in test of homogeneity is more than 0.05 which means there
is no data variation. In test of ANOVA the significant value is .665 which
means significant difference doesnt exists in the mean as well as the
responses of different groups.

Investors have a neutral opinion about liquidity as a purpose for investment.

But investors having experience of 2-5 years believes in the fact that liquidity
is the purpose behind their investment. The significant value in test of
homogeneity is more than 0.05 which means there is no data variation. In test
 of ANOVA the significant value is .900 which means significant difference
does exists in the mean as well as the responses of different groups.

Investors have a neutral opinion about tax saving as a purpose for investment.
But the investors having experience of 5 to 10 years believe that tax saving is
the reason behind their investment. . The significant value in test of
homogeneity is more than 0.05 which means there is no data variation. In test
of ANOVA the significant value is .005 which means significant difference
does exists in the mean as well as the responses of different groups

Table 4.11 SAVING PATTERN WISE ANALYSIS

Description Monthly F Mean Overall Levens Brown Sig

saving mean Stat. Forsythe
prefer to up to 1
66 3.41
invest in lakh
short term 1 to 2
39 3.49
investment lakh
.833 .411 .746
2 to 3 3.47
13 3.62
lakh
above 3
2 4.00
lakh
prefer to up to 1
66 3.41
invest in lakh
long term 1 to 2
39 3.72
investment lakh
2 to 3 3.58 .038 3.011* .066
13 4.08
lakh
above 3
2 3.50
lakh
Return is the up to 1
66 4.00
purpose lakh
behind my 1 to 2
39 4.15
investment lakh
2 to 3 4.00 .052 1.411 .243
13 3.69
lakh
above 3
2 3.00
lakh
liquidity is up to 1
66 3.47
the purpose lakh .142 .034 .992
1 to 2 39 3.51
 behind my lakh
investment 2 to 3
13 3.54
lakh 3.49
above 3
2 3.50
lakh
Tax saving is up to 1
66 2.70
the purpose lakh
behind my 1 to 2
39 3.41
investment lakh 3.12
2 to 3
13 4.15
lakh .194 7.754 .000
above 3
2 4.50
lakh

INTERPRETATION

Investors differentiated on the basis of monthly saving have a neutral opinion

regarding preference in short term investment. Investors having saving of 2 to
5 lakh like to invest in short term securities. The significant value in test of
homogeneity is more than 0.05 which means there is no data variation. In test
of ANOVA the significant value is .746 which means significant difference
doesnt exists in the mean as well as the responses of different groups

Investors agree to the fact that the want to invest in long term investments.
Investors having saving of 2 to 3 lakh strongly want to invest in these
securities. The significant value of test of homogeneity is less than 0.05 which
means there is data variation. In Robust test the significant difference is .066
which means there is lack of significant difference in the mean as well as
responses of different groups

Investors agree that return is the purpose behind their investment. All the
investors having saving of 1 to 2 lakhs strongly agrees to the statement. The
significant value in test of homogeneity is more than 0.05 which means there
is no data variation. In test of ANOVA the significant value is .243 which
means significant difference doesnt exists in the mean as well as the
responses of different groups.

Investors have a neutral opinion about liquidity as a purpose for investment.

But investors having saving of 2 to 3 lakh believes in the fact that liquidity is
the purpose behind their investment. The significant value in test of
homogeneity is more than 0.05 which means there is no data variation. In test
 of ANOVA the significant value is .992 which means significant difference
does exists in the mean as well as the responses of different groups.

Investors have a neutral opinion about tax saving as a purpose for investment.
But the investors having saving above 3 lakhs strongly believe that tax saving
is the reason behind their investment. The significant value in test of
homogeneity is more than 0.05 which means there is no data variation. In test
of ANOVA the significant value is .000 which means significant difference
does exists in the mean as well as the responses of different groups.

Chapter -5
FINDINGS

Major finding of this project:

The investors of rural and semi urban areas wants to invest in securities which
provide high return and have low risk.

Mostly semi urban and rural investor wants to invest in fixed deposits and lic
policies.

38% of the investor monitors their investment yearly whereas 33% of the
people monitor their investment monthly.

Internet, national newspaper and friends are the major source for inducing the
investors of semi urban and rural region towards investment.

Most of the people are having retirement and other investment policies in semi
urban and rural areas.

44% of the investors have taken loan from bank. The major investor has taken
loan for housing purposes
 Most of the investor thinks that saving bank account and fixed deposits are best
instruments for investment.

On the basis of occupation, investment experience and monthly saving

investors have a neutral opinion regarding investing in short term investments.

All the investors of different occupation, investment experience and monthly

saving agrees to invest in long term investments.

All the investors of various demographics think that return is the basic aim of
their investment.

All the investors somewhat agrees that liquidity is purpose behind their
investment.

All the investor have a neutral opinion regarding tax saving as a source of
investment but most of the government employees with high savings agree to
the statement

CONCLUSION AND SUGGESTIONS

The present study endeavored to give a look on behavior of investors towards investment
avenues. The different avenues can be preferred provided it is put forth before young and
different age group investors in the desired form. If the younger generation starts investing at
such an early stage on regular basis, they will be able to save more for their future. Facts
revealed in this study highlight the perception of investors who desire to invest in different
avenues which give high returns and growth prospect. Survey findings of this study have got
significant managerial implications that can be used by investment companies in restructuring
their existing practices. The individual investor still prefers to invest in securities which
provide risk free return. This clearly shows that investors in India prefer to play safe.
However, if the high risk investment avenues are designed with higher returns in a organized
manner, the investors would come forward to prefer those avenues. so the recommendation
for the investors are as follows:

To earn good return with less risk, a investor has to be active while designing his
portfolio.

Every attribute of investor have effect on portfolio design.

Investor should update the knowledge continuously to grab good opportunities in

market

Investor should take decisions carefully because updating of portfolio is very costly

Chapter- 6

Bibliography
References
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AjmiJy. A. (2008). Risk Tolerance of Individual Investors in Emerging Markets.

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Chapter -7

Questionnaire
Respected Sir/ Madam
As a part of the complete fulfilment of MBA degree , I RAMAN KUMAR student of
GAUTAM GROUP OF COLLEGE HAMIRPUR OF HIMACHAL PRADESH , is in process
to carry out a study on the topic A study on Comparative Analysis Of Investment Pattern
Of Rural And Semi Urban Investors in Hamirpur distt (h.p). So in this regard I need your
kind co-operation and support with your valuable views on the topic to do the research. I assure
you that the information provided by you shall be kept strictly confidential and shall be used for
academic purpose only.

Q1) Name of the Respondent: ____________________

Q2) Gender
A) Male B) Female
Q3) Education Level
A) Illiterate B) up to matric (10th) C) 10+2
D) Graduate E) Higher
Q4) Age group
A) Up to 30 B) 30 - 40 C) 40 - 50
D) 50-60 E) above 60
Q5) Marital status
A) Un-Married B) Married
Q6) Occupation
A) Self employed B) Government services
C) labor D) private service
Q7) How much is your annual income?
A) Below 1lakh B) 1-3lakhs C) 3-5lakhs
D) 5lakhs & above
Q8) Are you an income tax payee?
A) Yes B) No
Q9) Residence.
A) Rural B)semi urban
Q10) How much Investment experience do you have?

A) one year B) 2 to 5 C) 5 to 10

D) more than 10

Part 2 Investment Behavior

Q11) where do you generally prefer to invest in?

A) PPF B) fixed deposit C) Mutual funds
 D) Real estate E) Gold ETF F) LIC
G) Traditional source
Q12) How frequently do you monitor your investments?
A) Daily B) Monthly C) Quarterly
D) Yearly
Q13) Please TICK the following source of information for your investment?
A) Magazine B) National Newspaper C)Local News paper
D) Friends E) Relatives F) TV
G) Radio H)Internet
Q14) which of the foll8owing planning policies you own?
A) child planning B) education planning C) retirement planning
D) tax planning E) Others
Q15) I would prefer to invest in short term investment
A) Strongly disagree B) disagree C) neutral
D) agree E) strongly agree
Q19) I would prefer to invest in long term investment
A) Strongly disagree B) disagree C) neutral
D) agree E) strongly agree
Q20) Return is the purpose behind my investment?
A) Strongly disagree B) disagree C) neutral
D) agree E) strongly agree
Q21) Liquidity is the purpose behind my investment
A) Strongly disagree B) disagree C) neutral
D) agree E) strongly agree