Investment Avenues

OBJECTIVE OF THE STUDY

To understand in depth about different investment avenues available in India. To find out how investors get information about the various financial instruments. To find out the saving habits of the different investors and the amount they invest in various financial instruments. The type of financial instruments, they would prefer to invest. The duration for which they would prefer to keep their money invested. The rate of return they would likely to earn from the investment.

INVESTMENT OPTIONS

Fixed Deposits Stock Markets Mutual Funds Insurance

Investment avenues available in India

Investment under automatic route with repatriation benefits. Investment with government approval. Investment in domestic mutual funds. Investment in bonds issued by public sector undertakings. Purchase of shares of public sector enterprises. Deposits with companies. (for a minimum period of 3 years) Investment in government securities and/or shares. Investment in non convertible debentures. Money marked mutual funds. Deposits with companies. Commercial papers.

age

no of people

investment options

fixed deposit

stock market

mutual funds

insura nce

18-24
24-30 30-40 40 & above

14
12 16 12

7
8 3 8

10
6 13 8

7
4 5 5

3
4 6 5

total

54

26

37

21

18

% of people 50 40 30 20 10 0

% of people

Considerabl y satisfied

Reasonable satisfied

Not satisfied

Highly satisfied

safety good return tax benefit capital appreciation liquidity others

number of people low risk low return 10 moderate risk moderate return 25 high risk high return 15

number of people

friend's suggestion newspapers/ magazines self decision television brokers/agents others

FINDINGS
Therefore from the survey, whatever we got, here is the gist of all of them: People are more inclined to invest in the stock market, irrespective of the market scenario and the level of risk. Majority of the people wants higher return in short period of time that is why they prefer to invest in stock markets and mutual funds rather than any other form of investments. People between ages 30-40 think about long term returns as well as higher return in short period of time that is why they invest in stock market for short period of time and in insurance for long term return. People between ages 18-24 dont have much money to invest and they cant take higher risk, so they invest in mutual funds which are of moderate risk. People between ages 24-30 wants to be financially stable that is why they dont like to take risk at all. So, they invest in the banks fixed deposit scheme which has almost no risk and lower

SUGGESTIONS
This analysis will help to strengthen investor intimacy. This analysis will also throw light on various investment avenues available in India that will help in many ways like It will help to understand the expectations of the investors about their company from the perspective of financial performance and corporate social responsibility. It will provide fresh insights which can help their business continue to flourish. The expectations of different types of investors regarding particular service requirements can be identified. The common problem areas faced by the investors can be understood.

 It also enhances new services initiatives. This study will help in gaining a better understanding of what an investor looks for in an investment option. It can be used by the financial sector in designing better financial instrument customized to suit the needs of the investor. It will also help the agents and brokers in marketing the existing financial instruments. It will provide knowledge to the investors about the various financial services provided by the company to their investors. It will also help the company to understand what is the requirement and expectations of different categories of investors.