Académique Documents
Professionnel Documents
Culture Documents
and co- operation from various quarters. The study also bears the imprints of many
complete my project.
project Miss Urvashi for hER kind Co-operation and guidance, without which this
and for their kind co-operation and by spend their valuable time in providing me the
information needed.
(SAVITA HOODA)
PREFACE
Master of Business Administration is a stepping stone to the Management Career. In
order to achieve Practical, Positive and concrete result, the class room leaving needs
to be effectively collaborated with the realities of the situation existing in the real
corporate world. It has great pleasure in presenting this research project which is
Research project is an integral part of curriculum and its purpose is to provide the
student with the practical exposure of the todays changing scenario. It helps in the
basic skills required to perform the survey and statistical tool needed to analyses the
data. Thus it helps in moulding the students according to the requirement of actual
world.
This research project makes the study on Investor behaviour regarding financial
services. Objective of this research were to find out the Perception of the investors
regarding different financial instrument and to examine why and where people
invest.
TABLE OF CONTENTS
CONTENTS
Industry Profile.
Scope of Study
Objective of Study
Research Methodology
Limitations of Study
Introduction to investment.
Conclusion.
Recommendation
Bibliography.
Annexure.
Questionnaire
List of Tables
List of Graphs
INDUSTRY PROFILE
Financial services industry grows as the time passes.
Excluding real estate, the financial service sectors contribution to the gross
domestic product total led 7.7% in 2004, the latest data available.
The assets of the financial services sector grew 12% from $42.9 trillion in
U.S. households financial assets debt rose 94.3 % from $15.7% trillion in
Household debt rose 10.6 % and Business debt rose 3.7% from 2003 to
2004.
Grame Leach Bliley act to expand the financial services activities of Bank
from $347 billion in 2003. In 2000 these assets amounted to $ 116 billion.
the diagram that only bank and post offices holds 84% of the total investment
industry.
DIFFERENT INSTITUTIONS
MKT. SHARE
INDIVIDUAL AGENTS 4%
Only 12% share of the industry is being held by the corporate brokers and merely
OTHERS 33%
Bajaj Capital and India Bulls are the major players in the financial services market
with 27% and 25% share of the total market. Reliance is the third largest player
with 15% market share and the rest of the market is fragmented.
MAJOR PLAYERS IN
THE INDUSTRY
BAJAJ CAPITAL
Bajaj Capital is one of the oldest and largest Investment Advisory Companies in
History
1964:- Bajaj Capital sets up its first 'Investment Centre' in New Delhi to guide
individual investors on where, when & how to invest. India's first Mutual Fund,
Unit Trust (UTI) of India is incorporated in the same year. 1965:- Bajaj Capital is
instrument Companies Fixed Deposits. EIL Ltd. (Oberoi Hotels, then known as
Associated Hotels of India Ltd.) becomes the first company to raise Fixed Deposits.
1966:- Bajaj Capital expands its product range & includes all UTI schemes and
Capital manages its first Equity issue (through associate company) of Grauer &
1975:- Bajaj Capital starts offering need based investment advice to investors
1981:- SAIL becomes the first government company to accept deposits, later
followed by IOC, BHEL BPCL, HPCL & others. Thus opening floodgates for
growth of retail investment market in India. Bajaj Capital plays an active role in all
1986:- Public Sector Undertakings (PSUs) start making Public issues of Bonds-
MTNL, NHPC, IRFC offer a series of Bond Issues. Bajaj Capital tops ranking in
most of them. 1987:- Launch of Public Sector Mutual Funds in India led by SBI.
Bajaj Capital plays a significant role in fund mobilisation for all these players.
1991:- SBI issues India Development Bonds for NRIs. Bajaj Capital becomes the
top mobiliser with collections over US $ 20 million. 1993:- Launch of first Private
Sector Mutual Fund- Kothari Pioneer followed by Birla & Alliance in the following
years. Bajaj Capital plays an active role and ranked among top mobilisers for all
these schemes.
1995:- IDBI & ICICI start issuing their series of Bonds for retail investors. Bajaj
Capital is Co-manager in all these offerings & rank constantly among top 5
mobilisers, on all India basis. 1997:- Private sector players lead revival of Mutual
Funds in India through Open ended Debt schemes. Bajaj Capital consolidates its
1999:- Bajaj Capital starts marketing Life & General Insurance Products of LIC &
Bajaj Capital achieves milestone of becoming top Pension Scheme seller in India
Bajaj Capital has a vast network of 109 offices spread all across the country. Our
team of over 1500 highly motivated professionals includes MBAs, CAs, Financial
Bonds
Mutual funds
Life insurance
General insurance
Pension schemes
Housing loans
NRI schemes
Car insurance
Financial Planning Services
Investment planning
Retirement planning
Insurance planning
Tax planning
"Wealth Management Group" offers Wealth Management Services for High Net
worth Individuals.
Bajaj Capital offers tailor made Investment Advisory and Financial Planning
Services customized exclusively to meet the needs of high net worth individuals.
for long-term investors. We pride ourselves in helping you meet your life's goals.
We do this by helping you assess your goals, plan for them and finally implement
them. We take a comprehensive approach to planning your future by including in
Investment Planning
Insurance Planning
Tax Planning
Retirement Planning
INDIABULLS
Indiabulls is India's leading retail financial services company with 135 locations
spread across 95 cities. While our size and strong balance sheet allow us to provide
you with varied products and services at very attractive prices, our over 1000 Client
Indiabulls is lead by a highly regarded management team that has invested crores of
rupees into a world class Infrastructure that provides our clients with real-time
service & 24/7 access to all information and products. Our flagship Indiabulls
Professional NetworkTM offers real-time prices, detailed data and news, intelligent
analytics, and electronic trading capabilities, right at your finger-tips. This powerful
Investor.
Indiabulls offers a full range of financial services and products ranging from
Equities to Insurance to enhance your wealth and hence, achieve your financial
goals.
Indiabulls' Client Relationship Managers are available to you to help with your
financial planning and investment needs. To provide the highest possible quality of
service, Indiabulls provides full access to all our products and services through
multi-channels.
Indiabulls offers a full range of financial services and products ranging from
Equities to Insurance to enhance your wealth and hence achieve your financial
goals.
Our Indiabulls Professional NetworkTM offers real-time prices, detailed data and
news, intelligent analytics, and electronic trading capabilities, right at your finger-
Indiabulls' Relationship Managers are available to you to help with your financial
planning and investment needs. To provide the highest possible quality of service,
Indiabulls provides full access to all products and services through multi-channels.
SERVICES OFFERED
Depository Services
Insurance
Personal Loan
RELIANCE CAPITAL
Reliance Capital Ltd. (RCL), one of India's leading private sector non-banking
operating performance during the period under review i.e. financial year 2001-02.
Gross income for the year increased 11.46% to Rs.548.59 crores compared to Rs.
492.20 crores in the previous financial year. Net profit also increased from Rs.93.45
Depreciation was lower at Rs. 55.18 crores (previous year Rs.71.97 crores), and the
tax provision decreased to Nil (previous year Rs.7.50 crores). Gross profit for the
year was lower at Rs.156.40 crores as against Rs.172.92 crores in the previous year.
During the financial year 2001-02, RCL redeemed preference shares of Rs. 800
crores as per the terms of the offer. RCL also redeemed non-convertible debentures
(NCDs) to the tune of Rs.700 crores and discount bonds to the tune of Rs.202 crores
RCL's gross debt: equity ratio, including long term and short term debt, as on 31st
March, 2002, is a conservative 1.91:1 well below the comparable levels in the
industry.
During the year, the ratings on the company's long term debt were re-affirmed at
"AA+" by Credit Analysis and Research Ltd. (CARE). The instruments carrying
this rating are of high quality by all standards, and are of high investment grade.
RCL's short term borrowing programme is rated ''PR1+'' by CARE, the highest
The Non-Banking Financial Services (NBFC) industry in the private sector in India
large number of small and medium sized companies with regional focus. These
NBFCs provide a variety of services including fund based, and fee based activities,
The financial sector through the last decade has undergone wide volatility and
change. During this period, effective regulations have brought in wide ranging
Business Review:
Leasing:
Insurance:
During the year, RCL has taken a new strategic initiative by entering into the life
insurance sector stood at Rs.78 crores, and upon receipt of approval from the
Opportunities:
The Indian economy provides several attractive growth opportunities with GDP
generally forecast to grow by 5%-6% per annum over the next several years.
presenting additional opportunities for companies like RCL that are active in the
contribute at a faster pace to the overall economy in the future. This is likely to
create a positive environment for the financial services industry in India. RCL is
Indian economy by offering wide range of products to suit the needs of the Indian
consumer.
Challenges:
RCL faces normal market competition in its business. RCL's strong financial
position, reflected by healthy credit rating and low debt:equity ratio, and adoption
Outlook:
sector. The company will also seek attractive opportunities in other growth areas in
RCL is exposed to the normal industry risk factors of interest rate volatility,
economic cycle, and credit risk. RCL manages these risks by maintaining a
management practices.
RCL has a proper and adequate system of internal controls to ensure that all
activities are monitored and controlled against any unauthorised use or disposition
of assets, and that the transactions are authorised, recorded and reported correctly.
RCL ensures adherence to all internal control policies and procedures as well as
compliance with all regulatory guidelines. The audit committee of the Board of
RCL has a team of able and experienced industry professionals. The number of
If you experience our language, presentation style, content or for that matter the
online trading facility, you'll find a common thread; one that helps you make
Sharekhan is also about focus. Sharekhan does not claim expertise in too many
things. Sharekhan's expertise lies in stocks and that's what he talks about with
authority. So when he says that investing in stocks should not be confused with
horse, it is something that is spoken with years of focused learning and experience
in the stock markets. And these beliefs are reflected in everything Sharekhan does
for you!
To sum up, Sharekhan brings to you a user- friendly online trading facility,
coupled with a wealth of content that will help you stalk the right shares.
Sharekhan Services
Sharekhan, one of India's leading brokerage houses, is the retail arm of SSKI. With over 240 share
shops in 110 cities, and India's premier online trading portal www.sharekhan.com, our customers
WAY2WEALTH
INTRODUCTION
Way2Wealth is a premier Investment Consultancy Firm that has been launched with
the aim of making investing simpler, more understandable and profitable for the
Income Securities, Life Insurance and Mutual Funds to Equity and Derivatives
(on the National Stock Exchange) for the convenience and benefit of it customers.
Mission
Philosophy
We believe that our knowledge combined with our investors trust and
experience.
Way2Wealth has:
Its headquarter at Bangalore.
Is the Member of The National Stock Exchange (NSE) of India and The Bangalore
Stock Exchange.
Innovision.
Services
Products
PROPERTY OF WAY2WEALTH SECURITIES
Investment
Mutual Funds Advice
Insurance
Life Investment Facilitation
Investment
Fixed Deposits Related Tax Guidance
Cash Flow Management
Equity
Retirement Planning
Derivatives
Childrens
Secondary Debt Education & Marriage
IPOsPlanning
Debt & Equity
STRENGTHS WEAKNESSES
High brand equity. Rising cost
Effective network / distribution. Increased centralized trading
Rich experience in stock markets.
Good infrastructure
OPPORTUNITIES THREATS
To diversify into unexposed areas Increased competition
To develop strategies to retain and attract Lack of other trade related facilities.
customers.
Expanding markets and wider area of
operation
To encash the advantage of the urbanization
and investors awareness
INTRODUCTION
TO INVESTMENT
Investment is the sacrifice of certain present value for the uncertain future reward. It
entails arriving at numerous decisions such as type, mix, amount, timing, grade etc.
continuous but rational too. Broadly speaking, and investment decision is a trade off
between risk and returns. All investment choices are made at points of time in
future. Since investments in securities are revocable investment ends are transient
and investment environment is fluid, the reliable bases for reasoned expectations
become more and more vague as once conceives of the distance future. Investors in
securities will, therefore, form time to time, reappraise and re-evaluate their various
ends.
Investment choices or decisions are found to be the outcome of three different but
environment and general as well as particular features of the securities and firms in
which he may invest. The second class of factors, entering into investment decisions
alternative investments are subjective and hypothetical in any case but their
foundations are necessarily provided by the environmental and financial facts
available to investors. These limit not only the range of investments, which may be
entertained. The third and final class of factors may be described as valuation
preferences for the size and regularity of the income to be received from and for the
expect, and how certain can I be that I will get it when I expect
it?
INVESTMENT/SPECULATION/GAMBLING
People usually make investments with a future end date in mind. The length of time
from the date when investment is purchased to the final date can be called the
purchased with a very short holding period in mind probably is not really an
A gamble is usually a very short- term investment in a game of chance. The holding
period for most gambles can be measured in seconds. That is, the result of so called
investment is quickly resolved by the roll of the dice or the turn of a card. Such
activities have planning horizons that are far too brief to do the research that should
Speculation is typically last longer than gambles but is briefer than investment. A
quick profit from an increase in the price of the asset, which expected to occur
within a few weeks or months. Those involved in speculations are reluctant to refer
to this activity as speculation because they dislike the connotations of the word;
There is no precise dividing line with respect to the length of investment holding
periods that could be used to separate gambles from speculations and speculations
from investments. At its best, investment is well grounded and carefully planned
The factors that drive interest rates can be broken into three broad
categories:
Economic Fundamentals
Market Psychology
Market Valuations
A weekly checklist process that assigns a bullish or
bearish assessment to the factors that drive the
direction of interest rates
PORTFOLIO
PORTFOLIODECISION
DECISIONATTRIBUTE
ATTRIBUTE
RECOMMENDATION
RECOMMENDATION
ECONOMIC MARKET
MARKET MARKET
MARKET
ECONOMIC PSYCHOLOGY VALUATIONS
FUNDAMENTAS
FUNDAMENTAS PSYCHOLOGY VALUATIONS
FEATURES OF AN
MONEY SUPPLY
MONEY SUPPLY POLITICAL RISK
DEPOSIT GROWTH POLITICAL RISK VOLUME TRADED
DEPOSIT GROWTH EVENT RISK VOLUME TRADED
FISCAL POLICY EVENT RISK STEEPNESSOF YIELD
FISCAL POLICY MONEY FLOW STEEPNESSOF YIELD
CREDIT GROWTH MONEY FLOW CURVE
CREDIT GROWTH INDIAN RUPEE CURVE
ECONOMIC GROWTH INDIAN RUPEE OVERSEAS RATE
ECONOMIC GROWTH ECONOMIC VIEW OVERSEAS RATE
INFLATION ECONOMIC VIEW
INFLATION
INVESTMENT PROGRAMME
Objective decision making process insulates from excessive market
noise
Choosing specific investments, investors will need definite ideas regarding features
which their portfolios should posses. These features would be consistent with the
investors general objectives and, in addition, should afford them all the incidental
conveniences and advantages which are possible under the circumstances. The
following are the suggested features as the ingredients from which many successful
Safety of Principal
protection against loss under reasonably likely conditions or variations. It calls for
careful review of economic and industry trends before deciding types and timing of
investments. Thus, it recognized that errors are unavoidable for which extensive
An investment is a liquid asset if it can be converted into cash without delay at full
market value in any quantity. For an investment to be liquid it must be (1) reversible
marketability involves the sale of the investment in the market for cash.
Stability of income
Stability of income must be looked at in different ways just as was security of
purchasing power of income. However, emphasis upon income stability may not
Capital Growth
connection between corporation and industry growth and very large capital
appreciation, investors and their advisers constantly are seeking growth stock. It is
exceedingly difficult to make a successful choice. The ideal growth stocks is the
Tax Benefits
To plan an investment programme without regard to ones tax status may be costly
the investor. There are really two problems involved here, one concerned with the
amount of income paid by the investment and the other with the burden of income
taxes upon that income. When investors income is small, that is anxious to have
maximum cash returns on their investments, and is prone to take excessive risks. On
the other hand, investors who are not pressed for cash income often find that
income taxes deplete certain types of investment income less than others, thus
the objective of receiving greater amount of future funds, the purchasing power of
the future funds should be considered by the investors. For maintaining purchasing
power stability, investors should carefully study (1) the degree of price level
inflation they expect, (2) the possibility of gain and loss in the investment available
to them, and (3) the limitations imposed by personal and family considerations.
Concealability
taxation, property must be concealable and leave no record of income received from
its use or sale. Gold and precious stones have long been esteemed for this purpose
because they combine high value with small bulk and are readily transferable.
This can be attributed to the fact that availability of investible funds is a pre-
requisite to deployment of funds. But, today, we find that investment has become a
household word and is very popular with people forming all walks of life.
savings;
Before knowing about the investment behaviour we have to know which class we
are going to read, Retailers are the shopkeepers having different nature and
behaviour. Investment behaviour signifies the ways from when the investors get
Security of money
Income factor
Age factor
Educational Factor
Risk Factor
Beliefs
Other than these, financial service market has some characteristics on which also
Intangibility
Inseparability
Variability
Perishability
DIFFERENT FINANCIAL
In this study, we consider only income factor. On the Basis of income. The Previous
INSTRUMENTS
belong to low income group have lack of funds and they need security first for their
investment.
Middle
EQUITY incomeSHARES
group may go for risk investment because they are doing balanced
MUTUAL FUND
investment. Where as high level income group consists of the people which like
INSURANCE
high
BONDS
return but exception is always there.
EQUITY SHARES
the sense that creditors and shareholders must be paid as scheduled before equity
shareholders can receive any payment. In bankruptcy equity holders are in principle
entitled only to assets remaining after all prior claimants have been satisfied. Thus,
risk is highest with equity shares and so must be its expected return. When investors
buy equity shares, they received certificates of ownership as proof of being owners
of company. The certificate states the number of shares purchased and their par
value.
The potential for profit is greater in equity share than in any other
capital gain is great. The total yield or yields to maturity may be substantial
2. Limited Liability
liability. Equity Share is usually fully paid. Shareholders may lose their
investment, but no more. They are not further liable for any failure on the
The equity share is a good hedge against inflation though it does not fully
rate risk. But, when interest rates are high shares tend to be less attractive,
4. Free Transferability
The owner of shares has the right to transfer his interest to someone
elese.The buyer should ensure that the issuing corporation transfers the
ownership on its books so that dividends, voting right and other privileges
will accrue to the new owner. Although the individual has the right to sell
his shares, there is little or no trading in the shares of many corporations due
to the lack of interested buyers. For this reason, equity shares of many small
5. Share in Growth
in value by sharing in the growth of company profits over the long run.
6. Tax Advantages
Equity shares also offer tax advantages to the investor. The larger yield on
equity shares results from an increase in principal or capital gains which are
a federal agency,
municipality or
Corporation.
At the time of purchase of bonds we are lending our money to which we buy the
bonds from. As return on our money, fixed rate of interest has been paid over a set
period of time. When the bond matures the investors money is usually returned
with the earned interest included. Bonds are like stocks because they are both
traded. Therefore you can buy the bonds after they are originally issued while at the
At the time of issue of bond the persons are promised to get their money back.
Bonds give income based on their rate of return. Bonds are usually much less
Bonds are like stocks because their prices are sensitive to interest rates as
well. Bonds also carry with them some heavy terminology, which can be
Types of Bonds:
Convertible Bonds
Floating-rate bonds
High-yield bonds
Zero-coupon bonds
Subordinated
INSURANCE
Insurance is a contract between two parties where by one party called insurer
undertakes in exchange for a fixed sum called premiums, to pay the other
event.
Types of Insurance
Life insurance
General Insurance
MUTUAL FUND
A Mutual Fund is a trust that pools the savings of a number of investors who share a
common financial goal. The money thus collected is then invested in capital market
instruments such as shares, debentures and other securities. The income earned
through these investments and the capital appreciation realised are shared by its unit
holders in proportion to the number of units owned by them. Thus a Mutual Fund is
the most suitable investment for the common man as it offers an opportunity to
low cost.
In other words we can say this is the way to make small investors to invest their
By Structure
Interval
By Investment Objective
Growth Schemes
Income Schemes
Balanced Schemes
Other Schemes
Tax Saving Schemes
Special Schemes
Index Schemes
Professional Management
Low Costs
Liquidity
Transparency
Flexibility
Diversification
Choice of schemes
Tax benefits
Convenient Administration
Return Potential
FREQUENTLY USED TERMS
Sale Price
Also known as Offer Price. This is the price on which we invest in MF. It may
Redemption Price
It is the price at which open-ended schemes repurchase their units and close-ended
schemes redeem their units on maturity. Such prices are NAV related.
Sales Load
Chapter 3
RESEARCH DESIGN
OBJECTIVES OF THE STUDY
1. To find out the preferred option for investment on the basis of income group
2. To find out whether people like to invest in mutual fund or not. If not then
3. To find out whether people like to invest in shares or not. If not then what is
H SECURY2EALSECUR
METHODOLOGY CONTENT
UNIVERSE
SAMPLE DESIGN
A sample design is a definite plan for obtaining a sample from a given population.
SAMPLE SIZE
For the study, judgement sampling was used and a sample of 100 investors was
SOURCE OF DATA
For the purpose of research two types of data was required i.e. primary & secondary
data.
Primary data:
Questionnaire
Personal Interviews
Secondary data:
Books
Magazines
Websites
Percentage method
LIMITATION OF THE STUDY
Each and every study must have some limitations because no one is sufficient in
itself. So this study also has some limitations. Some of the major are as follows:
The study area is only related to the investors of Jind only and sample size may
The study is basically based on the Primary data and observation, the
As manually analysis is done, so few error may be there even lot of precautions
Many of respondents were not ready to give exact information because they feel
Due to lack of time and financial restrictions the study was not able to achieve
The study has been carried out in Jind City selecting a sample of 100 people
(Shopkeepers). The aim of the study was to analyse Peoples perception regarding
different investment instruments e.g. Mutual Fund, Equity Shares etc. An attempt
D ATA
was made to understand the Investment behaviour with the help of Investors as
&
I N T E R P E TAT I O N
ANALYSIS AND
INTERPRETATION
Table-1
Purpose of investment
SECURITY 60%
RETURN 30%
TAX BENEFIT 10%
GRAPH 1
TAX
BENEFIT
10%
RETURN SECURITY
30% SECURITY RETURN
60% TAX BENEFIT
Interpretation:
The above table and graph shows that the security is the main purpose of the
different investors.
PPF/NSC 8%
BONDS 5%
INSURANCE 30%
MUTUAL FUND 4%
SHARES 5%
GRAPH 2
60% 48%
50%
40% 30%
30%
20% 8%
10% 5% 4% 5%
0%
D
E
ES
s
SC
S
FD
N
C
D
FU
AN
AR
N
N
BO
K
F/
SH
N
AL
PP
SU
BA
TU
IN
U
M
Interpretation:
The above table and graph is presenting the preferred option of different investors.
So Bank and insurance is the most preferred option for investment, where their
money is more secured. People want security of their money thats why they go for
GRAPH 3
TERM PLAN
10%
23%
7% ENDOWMENT
PLAN
MONEY BACK
PLAN
PENSION PLAN
35% 25%
MEDICLAIM PLAN
Interpretation:
The above table and graph indicates the various plan under insurance. This table
indicates that most of the people have invested in Term Plan, Endowment Plan and
Near about 85% people have invested their money in these three plans.
In Table-1 we find out that 50% people wants security of their money and
Guidance Preference
GRAPH 4
25%
30% INVESTMENT
CONSULTANT
BANK
AGENTS
45%
Interpretation:
The above table is showing the preferred option for guidance of the different
The reason being that the different persons have their own mind setup.
Table-5
Investors Perception Regarding the Shares
GRAPH 5
8% LACK OF
20%
KNOWLEDGE
16% RISKY
NOT INTERESTED
25% 31%
LACK OF
GUIDANCE
Interpretation:
The Table-5 is indicating the investors perception regarding the shares.
It is very clear from the table that most of the people are afraid of shares and they
Also when asked about reason many of them answers in not interested.
There are more chances of increase in the investment in shares in the near future as
Table-6
Perception Regarding Mutual Fund
GRAPH 6
LACK OF
15% KNOWLEDE
RISKY
Interpretation:
The above table shows the peoples perception regarding the mutual fund.
From the above table that most of the people have not so much knowledge
regarding the MF. Around 50% people ask about Mutual Fund.
Table-7
YES 5%
NO 95%
GRAPH 7
YES
5%
NO
95%
YES NO
Interpretation:
The above table and graph shows that only 5% people make investment in Mutual
Funds.
Table-8
GRAPH 8
70%
60%
50%
LESS THAN 1.5
LAKH
40%
1.5 TO 3 LAKH
30%
MORE THAN 3
LAKH
20%
10%
0%
D
Y
E
E
S
TE
K
C
G
D
IS
AN
N
D
ES
R
LE
FU
ID
R
W
F
TE
O
O
G
KN
IN
K
F
O
C
T
F
LA
O
K
O
N
K
LA
C
LA
Interpretation:
Table-8 indicates the perception of the investors relating to different income group
regarding Mutual Fund.
The reason is being lack of guidance and lack of interest.
The reason is being lack of knowledge for middle income group.
This table also indicates that these people interested in investing in MF.
Table-9
YES 5%
NO 95%
GRAPH 9
YES
5%
YES
NO
NO
95%
Interpretation:
The above table and graph shows that only 5% people make investment in Shares.
Table-10
1.5 3 LAKH
LACK OF KNOWLEDE 26% 14% 13%
RISKY 20% 43% 40%
LACK OF GUIDANCE 4% 9% 20%
LACK OF INTEREST 30% 20% 20%
NO FUND 20% 14% 7%
GRAPH 10
50%
45% LESS THAN 1.5
40%
35%
30% 1.5 TO 3 LAKH
25%
20%
15% MORE THAN 3
10%
5% LAKH
0%
INTEREST
RISKY
GUIDANCE
NO FUND
KNOWLEDE
LACK OF
LACK OF
LACK OF
Interpretation:
The above table and graph shows the perception regarding the shares of the
different investors based on income group. It is clear from the above table that
But if we put a sight on the current situation than we find that the stock
Table-11
LAKH
BANK 66% 37% 13%
BONDS 2% 3% 20%
SHARES 2% 3% 20%
GRAPH 11
0.7
0.6 INCOME LESS
0.5 THAN 1.5
0.4 INCOME 1.5 TO
0.3 3 LAKH
0.2 INCOME MORE
0.1 THAN 3 LAKH
0
SH ND
A L CE
M UR DS
ES
BO C
F/ K
N
FU
T U AN
AR
S N
BA
N
PP
IN
U
Interpretation:
The Table indicates the preferred option for investment of the different investors
based on income groups. It is quite clear form the above table that investors, whose
income is more than 3 lakh, they want to invest their money in mutual fund and
shares for high return. On the other hand investors, whose income is less than 1.5
lakh, they are more concerned about the security because they do not have so much
money. Middle income group want both security and return as a result they can take
some risk.
Table-12
Income Group
PURPOSE INCOME
LESS THAN 1.5 LAC 1.5 TO 3 LAC ABOVE 3 LAC
SECURITY 70% 60% 27%
RETURN 26% 31% 40%
TAX BENEFIT 4% 9% 33%
GRAPH 12
80%
70%
60%
50% SECURITY
40% RETURN
30%
TAX BENEFIT
20%
10%
0%
LESS THAN 1.5 TO 3 ABOVE 3
1.5 LAC LAC LAC
Interpretation:
The Table and graph shows the purpose of investors based on income group.
They are more conscious about tax benefit rather than other groups.
They are more conservative and want only security of their money.
Most of the people does not have any knowledge about Mutual Fund
When we talk with them about investment in shares or mutual funds then
Some peoples are ready for small investments in Mutual Fund scheme e.g.
SIP
Low income group like to security first due to that purpose they ignore risky
investment.
Most of them preferred that option in which they make investment earlier.
RECOMMENDATIONS
Till Now, Indian market is in boom stage. So there is lot of scope in that
Advertising is the best tool to create awareness among the investors for Mutual
V.K.Bhalla, Financial Management, 3rd edition, S.Chand & Company Ltd, Ram
Nager, Delhi.
New Delhi.
Website :www.amfiindia.com
Website: www.nseindia.com
Website: www.LICindia.com
ANNEXURE
QUESTIONNAIRE
Personal Details:
Name :
Contact No. :
Age :
Marital Status :
Spouse status :
________________ ________________
Investment Details:
Yes No
Yes No
5. No funds
5. No funds
8. What do you think who can better guide you for investment making?
Broker/ Agent
Banks
Investment Consultants
List of Tables
List of Graphs