A Dissertation On Investment

A DISSERTATION ON
“A STUDY OF INVESTORS PERCEPTION REGARDING VARIED INVESTMENT

AVENUES IN GUWAHATI CITY”
A DISSERTATION SUBMITTED FOR THE PARTIAL FULFILMENT OF MASTER OF

COMMERCE (M.COM) 3RD SEMESTER COURSE CURRICULUM UNDER GAUHATI
UNIVERSITY
UNDER THE GUIDANCE OF SUBMITTED BY
DR. SUMEE DASTIDAR PRASANT TALUKDAR
ASSISTANT PROFESSOR M.COM 3RD SEMESTER
DEPARTMENT OF M.COM G.U. ROLL NO. – PC-191-017-0198
GUWAHATI-781021 G.U. REGISTRATION NUMBER:
210991 OF 2016-17
GAUHATI COMMERCE COLLEGE
R.G. BARUAH ROAD, GUWAHATI -781021

CERTIFICATE OF ORIGINALITY
This is to certify that this dissertation entitled “A STUDY OF INVESTORS PERCEPTION

REGARDING VARIED INVESTMENT AVENUES IN GUWAHATI CITY” is a record of
genuine work done by Prasant Talukdar, bearing Roll No. PC-191-017-0198, Gauhati University
Registration No. 210991 0f 2016-17, a student of M.com 3rd Semester, Gauhati Commerce College.
The matter embodied in the project is a genuine work and has been prepared under my guidance.
The work has not been submitted to any university, institution or organisation for any other degree,
diploma or certificate.
Date: Dr. Sumee Dastidar

Place: Guwahati Department of M.Com
Gauhati Commerce College
DECLARATION
I Prasant Talukdar, of M.COM 3rd Semester, Gauhati Commerce College, bearing Roll No: PC- 191-
017-0198, here by declared that the dissertation entitled, “A STUDY OF INVESTORS
PERCEPTION REGARDING VARIED INVESTMENT AVENUES IN GUWAHATI CITY”
is conducted for the purpose of partial fulfilment of M.com course curriculum under Gauhati
University regulation and has been prepared by me. This project is the result of my own effort and it
has not been submitted to any university, institution, or organization for any other degree, diploma or
certificate. I also declared that the information provided in this project is true to the best of my
knowledge.
Date: Prasant Talukdar

Place: Guwahati M.Com 3rd semester
Roll: PC- 191-017-0198
G.U .Registration No: 210991 0f 2016-17
M.com 3rd Semester
ACKNOWLEDGEMENT
I owe my debt of gratitude for the concern on me by Dr Sumee Dastidar for her
timely help, support and continuous guidance in various ways that propelled the
successful completion of the dissertation consigned to me.
I would like to express my earnest gratitude and thanks to our principal- Dr.
Homeshwar Kalita, Coordinator- Dr. Rati Kanta Pathak and the lectures of PG. Dept.
of Gauhati Commerce College, who have given us a big opportunity to carry out the
dissertation.
I also want to acknowledge and thank all the respondents of my questionnaire who
have been cooperative during my research work and who have made it a success.
Last, but definitely not the least, I would like to convey my sincere regards to my
parents for boosting my morale. The encouragement by my friends in helping me and
considering the fulfilment of the dissertation is noteworthy.
I am very much pleased at carrying out the same. It enhanced my practical
knowledge on this study i.e.“A STUDY OF INVESTORS PERCEPTION REGARDING
VARIED INVESTMENT AVENUES IN GUWAHATI CITY”

Roll: PC- 191-017-0198
M.com 3rd Semester
PREFACE
Research is an important aspect for an individual to enhance their knowledge on

various phenomena.
The dissertation “A STUDY OF INVESTORS PERCEPTION REGARDING VARIED

INVESTMENT AVENUES IN GUWAHATI CITY ” is an attempt to understand the
investment preference of government employees.
I would like to offer my gratitude to Gauhati University for including dissertation

paper in our course curriculum because this work has given me a preliminary
knowledge of how to conduct a research and the manner to do further research
work properly.

Roll: PC- 191-017-0198
M.com 3rd Semester
LIST OF TABLES
TABLE TITLE PAGE

NO.
NO.
2.2 Difference between Saving and Investment
3.1 Age group of the respondents
3.2 Gender of the respondents
3.3 Education Qualification of the respondents
3.4 Monthly Income of the respondents
3.5 Awareness level among the respondents
3.6 Sources of information of the respondents about
different investment avenues
3.7 Familiar investment avenues of the respondents
3.8 The various investment avenues ranked by the respondents
3.9 Purpose of investment by the respondents
3.10 Investments by the respondents
3.11 Respondents preference from their investment
3.12 Preferred mode of investment by the respondents
3.13 Factors consider before investment by the respondents
3.14 Percentage of Income invested by the respondents
3.15 Frequency of investment of the respondents
3.16 Period of investment preferred by the respondents
3.17 Adequacy level about the present investment schemes

by the respondents
3.18 Special schemes in which respondents invest
3.19 Problem faced by respondents while investing
in the investment avenues
3.20 Types of problem faced by respondents while investing
3.21 Measures adapted by respondents to tackle their
investment problem
LIST OF CHARTS
CHART TITLE PAGE

NO.
NO.
3.1 Age group of the respondents
3.2 Gender of the respondents
3.3 Education Qualification of the respondents
3.4 Monthly Income of the respondents
3.5 Awareness level among the respondents
3.6 Sources of information of the respondents about
different investment avenues
3.7 Familiar investment avenues of the respondents
3.8 The various investment avenues ranked by the

respondents
3.9 Purpose of investment by the respondents
3.10 Investments by the respondents
3.11 Respondents preference from their investment
3.12 Preferred mode of investment by the respondents
3.13 Factors consider before investment by the respondents
3.14 Percentage of Income invested by the respondents
3.15 Frequency of investment of the respondents
3.16 Period of investment preferred by the respondents
3.17 Adequacy level about the present investment

schemes
by the respondents
3.18 Special schemes in which respondents invest
3.19 Problem faced by respondents while investing
in the investment avenues
3.20 Types of problem faced by respondents while

investing
3.21 Measures adapted by respondents to tackle their
investment problem
CONTENTS
CHAPTER TITLES PAGE
NO. NO.
CERTIFICATE I
DECLARATION Ii
ACKNOWLEDGEMENT Iii
PREFACE Iv
LIST OF TABLES
LIST OF FIGURES
1 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
1.2 REVIEW OF LITERATURE
1.3 SIGNIFICANCE OF THE STUDY
1.4 OBJECTIVES OF THE STUDY
1.5 RESEARCH METHODOLOGY:
1.5.1 RESEARCH DESIGN
1.5.2 POPULATION OF THE STUDY
1.5.3 SAMPLE SIZE
1.5.4 SAMPLING TECHNIQUE
1.5.5 SOURCE OF DATA

1.5.6 GEOGRAPHICAL LOCATION
1.5.7 ANALYSIS TECHNIQUE
1.6 SCOPE OF THE STUDY
1.7 PERIODICITY OF THE STUDY
1.8 LIMITATION OF THE STUDY
2 AN OVERVIEW OF INVESTMENT
2.1 CONCEPT OF INVESTMENT
2.2 CHARACTERISTIC OF INVESTMENT
2.3 NECESSITY AND IMPORTANCE OF

INVESTMENT
2.4 INVESTMENT OBJECTIVE
2.5 ELEMENT OF INVESTMENT
2.6 INVESTMENT ALTERNATIVES
2.7 STEP OF INVESTMENT
3 GLIMPSE OF INVESTMENT AVENUES
3.1 SHARES
3.2 DEBENTURES AND BONDS
3.3 MUTUAL FUNDS
3.4 POST OFFICE
3.5 PUBLIC DEPOSIT
3.6 BANK DEPOSIT

3.7 REAL ESTATE
3.8 INVESTMENT IN GOLD AND SILVER
3.9 LIFE INSURANCE
4 DATA ANALYSIS AND INTERPRETATION
5 FINDINGS, SUGGESTION AND CONCLUSION
5.1 FINDINGS
5.2 SUGGESTION
5.3 CONCLUSION
BIBLIOGRAPHY
ANNEXURE
QUESTIONNAIRE
1.1 BACKGROUND OF THE STUDY:
“In investment money, the amount of interest you want should depend on whether you want to
eat well or sleep well.”
-j.kenfieldmorley
Investment is the employment of funds with an aim of achieving additional income or growth in
value. It is the allocation of monetary resources to assets that are expected to yield some gain
over a period of time. In general terms, investment means the use of money with the hope of
making more money. In finance, investment means the purchase of a financial product or other
item of value with an expectation of favourable future returns. Investment of hard earned money
is a crucial activity of every human being. Investment refers to the concept of deferred
consumption, which involves purchasing an asset e.g. giving a loan or keeping funds in a bank
account with the aim of generating future returns. Various investment options are available,
offering differing risk-reward trade-offs. An understanding of the core concepts and a thorough
analysis of the options can help an investor create a portfolio that maximizes returns while
minimizing risk exposure. Investment is a commitment of a person’s funds to derive future
income in the form of interest, dividends, rent etc. It is the commitment of funds which have
been saved from current consumption with the hope that some benefits will accrue in future.
Thus, it is a reward for waiting for money. So the first step to investment is savings. In common
usage, saving generally means putting money aside, for example, by putting money in the bank
or investing in a pension plan. In a broader sense, saving is typically used to refer to
economizing, cutting costs, or to rescuing someone or something. In terms of personal finance,
saving refers to preserving money for future use - typically by putting it on deposit – this is
distinct from investment where there is an element of risk. Saving is a desire to reserve certain
portion of income for future needs. Research findings reveal that saving rate for household is
affected not only by their ability to save but also their willingness to save.
According to Donald E. Fischer and Ronald J. Jordanan investment is a commitment of funds

made in the expectation of some positive rate of returns. If the investment is properly
undertaken, the return will be commensurate with the risk the investor assumes”.
According to F. Amling - Investment means the purchase by an individual or institutional
investor of a financial or real asset that produces a return proportion to the risk assumed over
some future investment period.
1.2 BRIEF REVIEW OF LITERATURE
Review of literature is an important aspect of every research study. It serves multiple purpose
and is essential for a well design research study. It help the research to gain knowledge about the
particular field in which he/she is going to conduct the research. Relevant studies can provide
valuable insights and tips to make your own study better. It is the presentation, classification, and
evaluation of what other researchers have written on particular field of your study
Singh (1979) in his study stated out the reason for saving behaviour and risk involved in
investment by the respondent at Delhi. The study reveals that the investor’s preference varies
with growth in age and occupational status in terms of saving behaviour, risk tolerance, savings
ratio and satisfaction with the different level of savings. The study found that the individual who
are residing in their own house, have higher income and higher savings.
Sikidar and Singh (1996) revealed that the salaried and self-employed formed the major
investors in mutual fund primarily due to tax concessions.
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. Attitudes of investors were highly positive and showed their intention to
save for better future.
Karthikeyan (2001) has conducted research study on Small Investors‟ perception on Post Office
Saving Schemes. The study found that there was significant difference among the age groups, in
the level of awareness for KisanVikasPatra, National Savings Schemes, and Deposit Scheme for
Retired Employees. The overall score confirmed that the level of awareness among investors in
the old age group was higher than in those of the young age group. No dissimilarity was
observed between male and female investors except for the KisanVikasPatra and National
Savings Schemes. Out of the factors analyzed, necessities of life and tax benefits were two major
factors that influence the investors both in semi-urban and urban areas.
Jayachandran (2006) revealed that there is moderate level of saving in household. The major
factors of saving are personal income, family income, family size and life cycle of the household.
The most popular investment on physical assets are consumer durables whereas on financial
assets are bank deposits. The study found that there is a relatively poor level of awareness among
the rural people about the various financial assets. Many investors invested in safe financial
assets like bank deposits. Only a few investor preferred the investment on public issues but they
are not aware of the market value of their holding.
Gnana Desigan et.al (2006) made an attempt to empirically examine the investment pattern,
investment preference, to study the problems and factors influencing while making investment
and to measure the level of awareness about various aspects of investments. The results of the
study revealed that safety is the most important factor for making an investment. Liquidity,
stability and regular income went to capital appreciation, tax benefits given me next order. The
demographic variables of age, education and level of awareness are significantly associated.
Stephan and Selvi (2009) in their studies stated that it is necessary on the part of the elders to
find a definite source of income for themselves. The senior citizen have various alternative
avenues of investment for their saving in accordance to their preference. A definite idea about
investment will provide senior citizens a steady income which help them in the phase of rising
cost in future. Hence, it is the need of the hours for the elder to think and act wisely in their
investment decision. As all the investment are not equally good, awareness of various schemes
and the privileges of the aged will help them to select the best investment avenue.
Kalavathy (2009) in her work tilted “A study on saving and investment behaviour of salaried
persons” states that the current study divided into two section. The first section elucidates the
awareness of saving and investment modes and factors influences the saving and investments,
the second section discusses on their preferences, perception and satisfaction towards the saving
and investment avenues. It has been found that with the proportion of population, the working
age group of 15-64 years is also going to increase in future, the demographic extra saving are
also likely to increase. The study shows growth in real interest rate, growth in per capital income,
spread of banking facilities and the rate of inflation has statistically significant positive influence
on domestic saving.
Krishnamoorthi (2009) explored the changing investment pattern of investors. The study
concluded that irrespective of the developments in the capital market and economic conditions,
investors like to invest regularly and this investment behaviour is highly related to educational
background, their occupation, reading habit of investment news and the time taken for
investment decision making process.
Syed (2010) concluded that individual investor still prefer to invest in financial products which
give risk free returns. The study confirmed that Indian investors even if they are of high income,
well-educated, salaried, and independent are conservative investors who prefer to play safe in the
market. The revealed that there is a strong negative correlation between Age and Risk tolerance
level of the investor. Television is the media which is largely influencing the investor’s decisions
to design products which can cater to the investors who are low risk tolerant.
Das (2012) reveal the behaviour of the middle class investors through an empirical analysis. The
study is based on primary sources of data and it has been observed that most of the respondents
show their keen interest towards the insurance products so as to get tax benefits, life protection
and average profitable investment avenues. It is also found that the level of income influence the
investment decision. Higher income group shows relatively high preference towards investment
in share market and lower and average group show keen preference towards insurance and bank
as most preferred investment avenues
Samudra, and Burghate(2012) examined the investment behaviour of the middle income class
households in Nagpur and concluded that it is only the income of the household that has an
immediate bearing on investment preference but also the age group to which the head of the
household belong that influence the choice of investment avenues. Geographical horizon of the
investors, risk bearing capacity, educational level, age gender and risk tolerance capacity etc.
also impact their decision
1.3 SIGNIFICANT OF THE STUDY
Investment Planning is an integral part of any individual life, especially in this modern world
where value of everything is expressed in terms of money. The active working span of human
life is short as compared to the life span. This means people will be spending approximately the
same number of years in after retirement what they have spent in their active working life. Thus
it becomes important to save and invest while working so that person will continue to earn a
satisfying income and enjoy a comfortable lifestyle. Investment Planning enables a person to
identify their goals, assess the current position and takes necessary steps to achieve the goals. It
helps us to understand how financial decisions made effect our life. Investment Planning is not
just about financial and saving planning but it is about life time planning. Thus through proper
investment planning a person can have a easy and secured financial life.
1.4 OBJECTIVE OF THE STUDY:
The main objectives of the study are;
1. To identify the investment habit of the investors;

2. To examine the factors influencing their investment decision; and
3. To study their changing pattern of investment over last 5 years.
1.5 RESEARCH METHODOLOGY:
A research is an art of scientific investigation. It is an academic activity and as such the term
should be in technical sense. Research methodology is the way to systematically solve the
research problem. It explains the various steps that are generally adopted by the research in
studying the research problem with logic behind that.
The research methodology adopted for the survey in this study is as under:
1.5.1 Research design:
The research design is descriptive in nature. It is descriptive in the sense that it tries to reveal that
present state of the perception of the respondent towards the research study undertaken. A study
on investment planning adopted by the individual .in other word the research is descriptive
because it tries out ‘what is’
1.5.2 Population of the study
The population of the study comprises of all the investors in Guwahati city.
1.5.3 Sample size
Though questionnaires were sent to 110 respondents but only 93 responded back. Thus, the total
sample size of the study is 93.
1.5.4 Sampling technique:
Snowball sampling technique is adopted for selecting the sample for the present study. The
researcher distributed the questionnaire to few known investors who further distributed to other
investors.
1.5.5 Source of data:
The study was based on both primary and secondary data.
Primary data: A structured questionnaire consisting of open ended, close ended, Liker 5 point
scale and multiple choice questions were distributed amongst the respondents.
Secondary data: To ascertain the investment pattern of individual, secondary data were also
taken into consideration for the research and the data were collected from various journals,
books, newspaper periodical, etc.
1.5.6 Geographical Location:
The area of the study with regard of investment pattern of investors was selected as Guwahati
city, Assam.
1.5.7 Analysis Technique:
Regarding analysis the study, the data were collected from the various individual citizen and
each question were analysed separately and observation were written down based on the
response given by the respondent. Diagram and graphs have been included in the analysis to
make the analysis easier and easily understand.
1.6 SCOPE OF THE STUDY:
This study focused on the preference of Investment alternatives by the individual and their
investment pattern and it will be helpful to identify the better investment options in the market.
Investments have become a basic necessity for everyone. In our country, there is a rapid growth
in investment. Investors invest their funds in different types of investment opportunities. Each
investor has different objectives that need to be met depending on age, income and attitude
towards risk. Investors select almost all kinds of investment avenues for their investment. Every
individual desires his hard earned money to be invested in the most secure and liquid avenue.
Investment preference may vary due to various factors i.e. Safety, liquidity, marketability,
returns, tax benefits and risk involved etc. Investment also depends upon the awareness about
investment alternatives. The scope of this research is to identify the investors‟ level of awareness
about investment avenues, their attitude and preference towards various investment avenues. The
present study helps to analyse the factors which influence the investor to invest in various
investment alternatives. The task of the study is to know the investment preference of the
individual with special preference to Guwahati, Kamrup metro, Assam.
1.7. PERIODICITY OF THE STUDY

The study was conducted within the months of October 2020 to January 2021
1.8. LIMITATION OF THE STUDY:
Few limitations of the study are:
1) Some of the respondent found it difficult to give time to fill up the questionnaire.
2) The conclusion so derived by the study is based on 93 samples which is also another
limitation because it may not reflect the whole scenario.
3) Another limitation of the study was the level of literacy of an individual as the level of
illiterate respondent had difficulties in understanding the question of the questionnaire
which created certain problem.
4) The analysis was on the basis of information/opinion of the respondents which may
change with change of time, trend, lifestyle changes, etc.
CHAPTER 2
Overview of investment
2.1. CONCEPTS OF INVESTMENT:
1) Economic Investment: The concept of economic investment means addition to the capital
stock of the society. The capital stock of the society is the goods which are used in the
production of other goods. The term investment implies the formation of new and productive
capital in the form of new construction and producer’s durable instrument such as plant and
machinery. Inventories and human capital are also included in this concept. Thus, an investment,
in economic terms, means an increase in building, equipment, and inventory.
2) Financial Investment: This is an allocation of monetary resources to assets that are expected
to yield some gain or return over a given period of time. It means an exchange of financial
claims such as shares and bonds, real estate, etc. Financial investment involves contracts written
on pieces of paper such as shares and debentures. People invest their funds in shares, debentures,
fixed deposits, national saving certificates, life insurance policies, provident fund etc. Investment
is a commitment of funds to derive future income in the form of interest, dividends, rent,
premiums, pension benefits and the appreciation of the value of their principal capital. In
primitive economies, most investments are of the real variety whereas in a modern economy
much investment is of the financial variety. The economic and financial concepts of investment
are related to each other because investment is a part of the savings of individuals which flow
into the capital market either directly or through institutions. Thus, investment decisions and
financial decisions interact with each other. Financial decisions are primarily concerned with the
sources of money where as investment decisions are traditionally concerned with uses or
budgeting of money.
2.2 CHARACTERISTIC OF INVESTMENT
a) Return: Return refer to expected rate of return from an investment. Return is an important
characteristic of investment. Return is the major factor which influence the pattern of investment
that is made by the investor. Investor always prefer higher rate of return for his investment.
b) Safety: Safety refer to the protection of investor’s principal amount and expected rate of
return. Safety is also one of the essential and crucial element of investment. Investor prefer
safety about his capital. Capital is the certainty of return without loss of money or it will take
time to retain it. If an investor prefers less risk security , he can choose government bonds
security etc. in case, investor prefer high rate of return he/she will choose private securities but
safety of these securities are low.
c) Liquidity: Liquidity refers to an investment ready to be converted into cash position. In other
words, it availability immediately in cash form. Liquidity means that investment is easily
realizable, saleable or marketable. When the liquidity is high, then the return may be low. For
example, in UTI units, an investor generally prefers liquidity for the investment, safety of funds
through a minimum risk and maximum of return from the investment.
d) Marketability: Marketability refer to buying and selling of securities in the market.

Marketability means transferability or saleability of an asset. Securities are listed in a stock
market which are more easily marketability than which are not listed. Public limited company
share are more easily transferable than those of private limited companies.
e) Capital Growth: Capital growth refers to the appreciation of investment. Capital growth has
today become an important character of investment. It is recognizing in connection between
corporation and industry growth and very large capital growth. Investors and their advisers are
constantly seeking growth stock in the right industry and buy at the right time.
f) Stability of income: It refers to a constant return from the investment. Another major
characteristic feature of the investment is the stability of the income. Stability of income must
look for different path just as security of the principal amount. Every investor consider always
the stability of monetary income and stability of purchasing power of income.
2.3 NECESSITY AND IMPORTANCE OF INVESMENT:
An investment is an important and useful factor in the context of present day conditions. Some
factors which are important are outlined below:
A) Longer life expectancy:
Investment decision has become more significant as most people in India retire from the age of
56 to 60, so that they plan to save their money. Saving by themselves does not increase wealth,
saving must be invested in such a way, that the principal and income will be adequate for a
greater number of retirement years. Longer life expectance is one of the major reason for
effective saving and further investment activity that help for investment decision.
B) Increase rates of taxation:
When tax rate is increased, it will focus for generation saving by tax payer. When the tax payers
invest their income in provident fund, pension fund, Unit Trust Of India, Life Insurance, Unit
Linked Insurance Plan, National Saving Certificates, Development Bonds, Post Office
Cumulative Deposit Scheme etc. it affects the taxation income.
C) Interest rates:
Interested rate is one of the most important aspects of a sound investment plan. The interest rate
differs from one investment to another. There may be change between degree of risk and safe
investments. They may also differ due to different benefit schemes offered by the institution. A
high rate of interest may not be only factor favour the outlet for investment .stability of interest is
an important aspect of receiving a high rate of interest.
D) Inflation:
Inflation has become a continuous problem. It affects in term of rising prices. Several problem
are associated and coupled with a falling standard of living. Therefore, investor’s careful scrutiny
will make further investment process delayed. Investor ensures to check up safety of the
principal amount, and security of the investment. Both are crucial from the point of view of the
interest gained from the investment.
E) Income:
Income is the important element of the investment. When government provides jobs to the
unemployment persons in the country, the ultimate result ensuring of income than saving the
extra income. More income and more avenues of investment have led the working people to be
able and willing to save and invest their fund.
2.4 INVESTMENT OBJECTIVES:
An investment is a sacrifice of current money or other resources for future benefits. Numerous
avenues of investment are available today: Deposit money in a bank account or purchase a long-
term government bond or invest in the equity shares of a company or contribute to a provident
fund account or buy a stock option or acquire a plot of land or invest in some other form.
Investment refers to acquisition of some assets. It also means the conversion of money into
claims on money and use of funds for productive purposes, for securing some objectives like
income, appreciation of capital or capital gain, or for further production of goods and services
with objective of securing profits.
Investment Activity involves the use of funds or savings for further creation of assets or
acquisition of existing assets. The essential quality of an investment is that it involves “Waiting
for a reward”. It involves the commitment of resources which have been saved or put away from
current consumption in the hope that some benefits will accrue in future.
There are personal objectives which are given due consideration by every investor while
selecting suitable avenues for investment. Personal objectives may be like provision for old age
and sickness, provision for house construction, provision for education and marriage of children
and finally provision for dependents including wife, parents or physically handicapped member
of the family. Investment Avenue selected should be suitable for achieving both the financial and
personal objectives
By investing, an investor commits the present funds to one or more assets to be held for some
time in expectation of some future returns in terms of interest (revenue) or capital gain. The
investor has a large number of investment outlets. The investor may choose the particular
investment outlet after analysing the advantages and disadvantages provided by them. For this
decision making process, investment management is required. Investment management involves
analysis and selection of investments. For an individual investor as well as for other investors,
Investment management is a part of overall financial decision making. An investor should draw
an overall financial plan stating that how much total funds to be invested, how much to be
invested in real assets, etc. Such a financial plan should include decision whether to buy or
construct a house, as it is a major investment decision for an individual. Other aspects to be
considered may be how much to invest in life policies or future endowment funds e.g. provident
funds etc. Once a financial plan is prepared, an investor would be interested is constructing and
managing the optimum combination of the investment alternatives. The objective of construction
of such combination is to enhance the wealth of the investor. The combination of investment is
known as portfolio and the practice of including several investment alternatives in the portfolio is
known as diversification which aims at reducing the risk of the investor. There are different
methods of classifying the investment avenues.
A major classification is physical investment and financial investments. Investments are

physical, if savings are used to acquire physical assets, useful for consumption or production.
Many times physical assets are not useful for further production of goods or to create income for
example consumer durables, gold, silver etc. But most of the financial assets, barring cash are
used for production or consumption, or further creation of assets useful for production of goods
and services. Investing is a wide spread practice and many have made their fortunes in the
process. The starting point in this process is to determine the characteristics of the various
investments and then matching them with the individuals need and preferences. All personal
investing is designed in order to achieve certain objectives. These objectives may be tangible
such as buying a car, house etc. and intangible objectives such as social status, security etc.
Similarly; these objectives may be classified as financial or personal objectives. Financial
objectives are safety, profitability, and liquidity. Personal or individual objectives may be related
to personal characteristics of individuals such as family commitments, status, dependents,
educational requirements, income, consumption and provision for retirement etc. Diversification
of funds is an important principle of investment for earning higher rate of interest. Every investor
has certain specific objective to achieve through his long term or short term investment. Such
objectives may be monetary/financial or personal in character.
The objectives can be classified on the basis of the investors approach as follows:
a) Short Term High Priority Objectives: Investors have a high priority towards achieving certain
objectives in a short time. For example, a young couple will give high priority to buy a house.
Thus, investors will go for high priority objectives and invest their money accordingly.
b) Long Term High Priority Objectives: Some investors look forward and invest on the basis of
objectives of long term needs. They want to achieve financial independence in long period. For
example, investing for postretirement period or education of child etc. investors, usually prefer a
diversified approach while selecting different types of investments.
c) Low Priority Objectives: These objectives have low priority in investing. These objectives are
not painful. After investing in high priority assets, investors can invest in these low priority
assets. For example, provision for tour, domestic appliances, etc.
d) Money Making Objectives: Investors put their surplus money in these kinds of investment.
Their objective is to maximize wealth. Usually, the investors invest in shares of companies
which provide capital appreciation apart from regular income from dividend.
Every investor has common objectives with regard to the investment of their capital. The
importance of each objective varies from investor to investor and depends upon the age and the
amount of capital they have and their expectations. These objectives may vary according to
A. Lifestyle – Investors want to ensure that their assets can meet their financial needs over their
lifetimes.
B. Financial Security – Investors want to protect their financial needs against financial risks at all
times.
C. Return – Investors want a balance of risk and return that is suitable to their personal risk
preferences.
D. Value for Money – Investors wants to minimize the costs of managing their assets and their
financial needs.
E. Peace of Mind – Investors does not want to worry about the day-to-day movements of markets
and their present and future financial security. Achieving the sum of these objectives depends
very much on the investor having all their assets and needs managed centrally, with portfolios
planned to meet lifetime needs, with one overall investment strategy ensuring that the disposition
of assets will match individual needs and risk preferences.
2.5 ELEMENTS OF INVESTMENTS:
Elements of investments are Risk and Return relationship, Time, Liquidity and Tax savings. The
three key aspects of any investment are time, risk and return. The sacrifice takes place now and
is certain. The benefit is expected in the future and tends to be uncertain. In some investments
(like government bonds, LIC, FD) the time element is the dominant attribute. In other
investments (like stock options) the risk element is the dominant attribute. In yet other
investments (like shares, mutual funds) both time and risk are the dominant attributes.
The Elements of Investments are:
a) Return: Investors buy or sell financial instruments in order to earn return on them. The return
on investment is the reward to the investors. The return includes both current income and capital
gain or losses, which arises by the increase or decrease of the security price.
b) Risk: Risk is the chance of loss due to variability of returns on an investment. In case of every
investment, there is a chance of loss. It may be loss of interest, dividend or principal amount of
investment. However, risk and return are inseparable. Return is a precise statistical term and it is
measurable. But the risk is not a precise statistical term. However, the risk can be quantified. The
investment process should be considered in terms of both risk and return. Present consumption
is sacrifice that has to be borne is certain but the return in the future may be uncertain. This
attribute of investment indicates the risk factor. The risk is undertaken with a view to reap some
return from the investment. Investment means some monetary commitment. A person’s
commitment to buy a flat or house for his personal use is an investment from his point of view.
This cannot be considered as an actual investment as it involves sacrifice but does not yield any
financial return. Risk is another factor which needs careful selection of the avenue for
investment. Risk is a normal feature of every investment as an investor has to part with his
money immediately and has to collect it back with some benefit in due course. The risk may be
more in some investment avenues and less in others. Risk connected with the investment are,
liquidity risk, inflation risk, market risk, business risk, political risk etc. Thus, the objective of an
investor should be to minimize the risk and to maximize the return out of the investment made.
c) Time: time is an important factor in investment. It offers several different courses of action.
Time period depends on the attitude of the investor who follows a “buy and hold” policy. As
time moves on, analysis believes that conditions may change and investors may revaluate
expected returns and risk for each investment.
1. Period of Investment: It is one major consideration while selecting avenue for investment.
Such period may be
a) Short Term (up to one year) – To meet such objectives, investment carry minimum or no risk
are suitable.
b) Medium Term (1 year to 3 years) – Investment avenues that offers better returns and may
carry slightly more risk can be considered.
c) Long Term (3 years and above) – As the time horizon is adequate, investor can look at
investment that offers best returns and are considered more risky.
d) Liquidity: Liquidity is also important factor to be considered while making an investment.

Liquidity refers to the ability of an investment to be converted into cash as and when required.
The investor may want his money back at any time. Therefore, the investment should provide
liquidity to the investor.
e) Tax Saving: The investors should get the benefit of tax exemption from the investments. There
are certain investments which provide tax exemption to the investor. The tax saving investments
increases the return on investment. Therefore, the investors should also think of saving income
tax and invest money in order to maximize the return on investment.
2.6 INVESTMENT ALTERNATIVES:
Wide varieties of investment avenues are now available in India. An investor can himself select
the best avenue after studying the merits and demerits of different avenues. Financial advertising,
newspaper supplements on financial matters and investment journals offer guidance to investors
in the selection of suitable investment avenues. Few years before there were only limited a
number of options for investments like bank deposits and post office schemes. Only few rich and
adventurous investors had knowledge about Stock market and Securities. Now, the modern
investment trend has a different scenario with various options of investment and best return for
the investors.
The following investment avenues are popular and used extensively in India:
1) Investment in Shares: Shares are considered to be risky investments but at the same time,
they are most liquid investments due to the presence of stock markets.
2) Postal Savings Schemes: Post Office Monthly Income Scheme is a low risk saving
investment. National Savings certificates are offered by the Post office as long term investments.
3) PPF: Public Provident Fund is a long term saving instrument with a maturity period of 15
years.
4) Investment in Intermediaries such as mutual funds: Mutual funds are an easy and tension free
investment option and it automatically diversifies the investments.
5) Deposits in Companies: Fixed deposit, etc. These are non-marketable securities.
6) Life Insurance Investment: Life insurance is an investment for security of life and includes
different life policies such as whole life policy, endowment policy, annuity plans and so on.
7) Bullion: The bullion offers investment opportunities in the form of gold, silver, precious
metals and antiques.
8) Investment in Real Estates: Every investor has some part of their portfolio invested in real
assets
9) Investment in Debentures and Bonds of Companies and Government: Bonds are long term
investment options with a fixed stream of cash flows and considered to be relatively less risky.
There are some avenues/investment schemes where tax benefits are available. Such
schemes are called Tax Savings Schemes of Investment. A tax payer can take the benefit of such
schemes and bring down his total tax liability. The basic purpose of such schemes is to
encourage investment in certain investment avenues. In some schemes, the entire investment is
made tax free, i.e. it is deducted from yearly taxable income. The „Investor‟ can be an
individual, a government, a pension fund, or a corporation. Similarly, this definition includes all
types of investments, including investments by corporations in plant and equipment and
investments by individuals in stocks, bonds, commodities, or real estate. In all cases, the investor
is trading a known rupee amount today for some expected future stream of payments that will be
greater than the current outlay.
Every individual investor possesses different mind-set when they decide about investing in a
particular investment avenue such as stocks, bonds, mutual funds, fixed deposit, real estate, LIC,
bullion etc. in each life cycle stage, every individual desires his hard earned money to be
invested in most secure and liquid avenue. However, the decision varies for every individual
depending on their risk taking ability and the purpose for which investment is to be done. Each
individual investor selects the investment option for certain time period looking at their personal
financial goals. Investment behaviour of an individual investor reveals how he/she wants to
allocate the surplus resources to investment alternatives available. The investment behaviour
consists of why they want to invest, how much of their disposable income they want to invest,
for how many year/months they want to invest and most importantly the timing of such
investment. In every life cycle stage, saving objective by an individual always changes. Such
changes occur not only due to the age of investors,
2.7 STEP OF INVESTMENT PLANNING:
While everyone makes decision only individual consider how to make better decision. It
involved six steps which are elaborated below:
Step 1. Self-assessment: Clarify present situation, this is a preliminary step someone has to
complete prior to planning their finance. Doing a self-assessment enable a person to understand
their present wealth status and responsibilities. Self-assessment should contain following
• Prospective retirement age
• Main source of income
• Dependents in family
• Expenses and monthly savings
• Current investment status
One should identify their wealth status prior to move with financial planning.
Step 2. Identify financial, personal goals and objectives: Each individual aspires to lead a better
and a happier life. To lead such a life there are some needs and some wishes that need to be
fulfilled. Money is a medium through which such needs and wishes are fulfilled. Some of the
common needs that most individuals would have are: creating enough financial resources to lead
a comfortable retired life, providing for a child's education and marriage, buying a dream home,
providing for medical emergencies, etc. Once the needs/ objectives have been identified, they
need to be converted into financial goals. Two components go into converting the needs into
financial goals. First is to evaluate and find out when it is needed to make withdrawals from
investments for each of the needs/ objectives. Then person should estimate the amount of money
needed in current value to meet the objective/ need today. Then by using a suitable inflation
factor one can project what would be the amount of money needed to meet the objective/ need in
future. Similarly one need to estimate the amount of money needed to meet all such objectives/
needs. Once person have all the values they need to plot it against a timeline.
Step 3. Identify financial problems or opportunities: Once goals and current situation are
identified, the short fall to achieve the goal can be assessed. This short fall need to be covered
over a period of time to full fill various need at different life stages. Since future cannot be
predict, all the contingencies should be considered will doing financial planning. A good
investment plan should hedge from various risk. A flexible approach should be taken to cater to
changing needs and should be ready to reorganize our financial plan from time to time.
Step 4. Determine recommendations and alternative solutions: Now review various investment
options such as stocks, mutual funds, debt instruments such as PPF, bonds, fixed deposits, gilt
funds, etc. and identify which instrument(s) or a combination thereof best suits the need. The
time frame for investment must correspond with the time period for goals.
Step 5. Implement the appropriate strategies to achieve goals: Until person put things into action
everything is waste. Necessary steps needs to be taken to achieve financial goals this may
include gathering necessary documents, open necessary bank, demat, trading account, liaise with
brokers and get started. In simple terms, start investing and stick to the plan.
Step 6. Review and update plan periodically: Investment planning is not a one-time activity. A
successful plan needs serious commitment and periodical review (once in six months, or at a
major event such as birth, death, inheritance). Person should be prepared to make minor or major
revisions to their current financial situation, goals and investment time frame based on a review
of the performance of investments.
CHAPTER 3
Glimpse of investments
Indian financial industry is considered as one of the strongest financial sectors among the world
markets. Many industry experts may give various reasons for such Indian financial industry
reputation, but there is only one answer which ono one can deny is the effective control and
governance of the country’s supreme monetary authority the “RESERVE BANK OF INDIA”
(RBI).
Financial sector in India has experienced a better environment to grow with the presence of
higher competition. The financial system in India is regulated by independendent regulators in
the field of banking, insurance, and mortgage and capital market. Government of India play a
significant role in the financial market in India.
Ministry of finance, government of India control the financial sector in India. Every year the
finance ministry presents the annual budget on 28th February. The reserve bank of India is an
apex institution in controlling banking system in the country. Its monetary policy acts as a major
weapon in the Indian financial market.
Various governing bodies in financial sector
1) RBI: Reserve Bank of India is the supreme authority and regulation bodies for all the
monetary transactions in India. RBI is the regulatory body for various banking and non-
banking financial institution in India.
2) SEBI: Securities and Exchange Board of India is one the regulatory authorities for India’s
capital markets.
3) IRDA: Insurance regulatory and Development Authority in India regulates all the
insurance companies in India.
4) AMFI: Association of mutual funds in India regulates all the mutual fund companies in
India.
5) FIPB: Foreign investment promotion board regulates all the foreign direct invesmnet
made in India.
6) Ministry of housing has introduce the Real Estate (Regulation and Development) Act,
2016 is the Act of the Parliament of India which seeks to protect home-buyers as well as
help boost investment in the real estate industry.
7) Investment in gold is governed by the world gold council, in India we don’t have any
regulatory authority for investment in gold.
8) Ministry of finance, Government of India has a control over all the financial bodies in
India.
9) Government securities, Public Provident Fund (PPF), National Saving Certificate (NSC),
and Post Office Savings are all under the control of the central government.
Investment are normally categorized using the risk involved in it, risk is depend on various factor
like the past performance, its governing bodies, involvement of the government etc., in this
scenario Indian investment are classified into 3 categories based on risk they are:
 Low risk /no risk investments

 Medium risk investments
 High risk investments
Apart from this there are traditional investments avenues and emerging investment
avenues. Various investments avenues available in India
Safe/low Risk Avenues:

o Saving account
o Banking fixed deposits
o Public Provident Fund
o National Saving certificates
o Post Office Saving
o Government securities
Moderate Risk Avenues:

o Mutual funds
o Life insurance
o Debenture
o Bonds
High Risk Avenues:
o Equity share Market
o Commodity Market
o FOREX Market
Traditional Avenues:
o Real Estate (property)
o Gold /Silver.
o Chit funds.
Emerging Avenues:
o Virtual Real Estate
o Hedge funds/ Private Equity Investment
o Art and passion
3.1 Shares:
A share is a document issued by a company, which entitles its holder to be the owner of the
company. Owning a share means you are a partial owner of the company and get voting rights.
Investment in stock can generate returns through dividends and bonus, even if the price falls. An
equity share is total equity capital of a company which is divided into equal parts of small
denominations, each called a share.
A stock exchange is a constituted body for the purpose of assisting, regulating or controlling the
business of buying, selling or dealing in securities. Stock exchange could be a regional stock
exchange whose area if operational or jurisdiction is specified at the time of its recognition or
national exchange, which is permitted to have nationwide trading since inception. The investor
can be anybody like retail investors, financial institutions, government, high net worth
individual, banks, insurance companies etc.
 The stock market:
It is divided into two segments where stock or share is traded. Followings are the two segments
of stock market:
a) Primary market: The primary market provides the channel for sale of new securities.
Primary market provides opportunity to issuers of securities; government as well as
corporate to raise resources to meet their requirements of investment and or discharge
some obligation. They may issue the securities at face value or at a discount/ premium
and these securities may take a variety of forms as equity, debt etc. They may issue the
securities in domestic market. The only thing they do in either IPO (Initial Public
Offering) or FPO (Further Public Offering) is to sell the shares or debentures to investors.
By this process share is listed on stock exchange.
In India we have 2 major stock exchanges situated at Mumbai:
A) NSE (National Stock Exchange)
B) BSE (Bombay Stock Exchange)
b) Secondary market: Secondary market refers to a market where securities are traded after
being initially offered to the public in the primary market or listed on the stock exchange.
Majority of the trading is done in the secondary market. Secondary market comprises of
equity market and the debt markets.
For the general investor, the secondary market provides an efficient platform for trading
of the securities. For the management of the company secondary equity market serves as a
monitoring and control conduit by facilitating value enhancing control activities, enabling
implementation of incentives based management contracts and aggregating information that
guides management to take decisions.
The role of stock exchange in buying and selling shares in India is under the overall supervision
of the regulating authority. The Securities and Exchange Board of India (SEBI) provides a
trading platform, where buyers and sellers can meet to transact in securities. The trading platform
provided by the exchanges is in an electronic form and there is no need of buyers and sellers to
meet at a physical location for trading. The internet based real time trading facility is provided to
the investors.
• Various forms of shares traded in secondary market:
There are many types of share which can be invested as per investor’s financial position, risk
taking capacity, and investment goals. Listed below are several types of shares which are very
important with the point of view of the general investors. They help in the maximization of the
wealth. They are commonly traded in the stock market:
1) Blue chip share: Blue chip share are stocks of well-established companies that have stable
earnings and no extensive liabilities. They have a track record of playing regular dividends, and
are valued by investors seeking relative safety and stability. The name comes from the blue-
colored chip in the game of poker, which is typically the most valuable.
2) Penny share: Penny share are low-priced, speculative and risky securities which are traded
over-the-counter (OTC); that is outside of one of the major exchanges. These shares mostly
attract the short term investors. They have high risk taking capacity.
3) Income share: Income shares offer a higher dividend in relation to their market price. They are
especially attractive to investors who are looking for current income that will gradually grow
over the years as a way to offset inflation.
4) Growth share: Growth shares are securities which appreciate in value and yield a high return.
Their profits are typically re-invested to expand the business. Investors gain because the stock
prices increase as the business grows, thus increasing the value of the investment.
5) Value share: Value shares are securities which investors consider to be undervalued. They feel
that the stock is being traded below market value, and they believe in the long-termgrowth of the
issuing company.
Apart from these types, there are also other forms of the share depending upon the companies
which want to have different share classes to attract investment, to push dividend income in
certain directions, to remove voting powers of certain investors, and to motivate staff
involvement in profit sharing of company. Depending upon these factors shares are further
divided into following categories:
a) Ordinary shares
b) Deferred ordinary shares
c) Non-voting ordinary shares
d) Redeemable shares
e) Preference shares
f) Cumulative preference shares
g) Redeemable preference shares
 Advantages of investing in share:

1. Inflation rate is higher than commercials banks interest rate but lower than equity price.
2. Investment in share is away from eyes of the public as compared to real asset which is
visible to others.
3. The rate of growth is higher than other investment options.
4. The cash reward can be obtained in form of dividends, bonus and premium pricing.
5. Cash appreciation is more in share investments. Easy to invest with comforts of
electronic mediums, earning option on the day to day bases
 Disadvantages of investing in share:

1. Crash in share prices. Due to many reasons share prices drop so much.
2. Sometimes the companies going into the liquidation thereby erode the investments of the
shares holders.
3. Fraudulent stock brokers.
4. Sometimes changing government and regulating body policies towards the investments.
3.2 Debentures and bonds:
Debt instrument represents a contract where by one party lends money to another on
predetermined terms with regards to rate and periodicity of interest, repayment of principal
amount by the borrower to the lender. The word ‘debenture’ has been derived from a Latin word
‘debere’ which means to borrow. Debenture is the acknowledgement of the debt. It is a loan
capital raised by company from the general public. A person or a holder of such written
acknowledgement is called ‘debenture holder’. Bond is similar to debentures in terms of texture
and contents. In the Indian securities Market, the term ‘bond’ is used for debt instruments issued
by the Central and State Governments and Public Sector organizations and the term ‘debenture’
is used for instruments issued by private corporate sector. The only difference is with respect of
issue conditions, bonds can be issued without predetermined rate of interest while debenture
can’t be issued. According to section 2(12) of the Companies Act 1956, ‘debenture’ includes
debenture inventory, bonds and any other securities of a company whether constituting a charge
on the assets of the company or not.
• Distinction between debentures and shares:
Shares Debentures
Ownership A share represents ownership of company A debenture is only acknowledgment of

debt.
Returns The return on share is known as dividend. The return on debenture is known as
interest.
Repayment Shares are not returned by companies. After fix period of the time companies
Some companies do buy back their shares return the debenture with profits.
Voting rights Share holder has voting rights given by Debenture holder do not enjoy any voting
company. right by company
Security Shares are little insecure and unsafe with Debentures are more secure and safe with
compare to debenture. Risk factor is compare to shares. It is also less risky
attached with shares. than shares.
 Types of debentures:
1. Type of debenture according to security factor:
a. Secured debenture: Secured debentures are those debentures on which charge is
created on the asset of the company for the purpose of payment in the case of
default. The charge may be fix or floating.
b. Unsecured Debenture: Unsecured debentures are those debentures on which there
is no specific charge on the assets of the company. Floating charges may be
created on the debenture by default.
2. Type of debenture according to tenure factor:
a. Redeemable Debenture: Redeemable debenture are those debenture which are
payable on the expiry of the specific period either in instalment or in lump sum
amount in the life time of the company.
b. Irredeemable Debenture: Irredeemable debenture is also known as perpetual
debenture. In this type of debenture company does not give any undertaking for
the repayment of the money borrowed by such debenture. These debentures are
repayable at the time of winding of the company.
3. Type of debenture according to mode of convertibility factor:
a. Convertible Debenture: Debentures which are convertible into share or any other
securities at the option of company or debenture holder are called convertible
debentures. These debentures are fully or partially paid depending upon the
decision of the board of directors of the company.
b. Non-convertible Debenture: Debentures which are not convertible into shares or
any other securities at the option of company neither debenture holder is called
non-convertible debenture. Most of the debentures fall in this category.
4. Type of debenture according to coupon rate:
a. Discounted rate Debenture: These debentures do not carry any specific rate of
interest. It is also known as zero rate coupon debentures. In order to compensate
the investors these debentures are issued in discount rate. Difference between
nominal value and the issue price is treated as the amount of the interest.
b. Specific rate Debenture: The debentures are issued with the specific rate of
interest, which is called coupon rate. The specified rate may be fixed or floating.
The floating rate is same as bank rate.
5. Type of debenture according to registration factor:
a. Registered Debenture: Registered debentures are those debentures whose detail
information regarding the holder is kept or maintained by the company. Details
such like address, number of issues, etc. a separate register is maintained by the
executive.
b. Unregistered or Bearer Debenture: Bearer debentures are those debentures which
are transferred by way of delivery and the company does not keep any record of
the debenture holders. The interest is paid only to that debenture holder who has
coupon.
3.3 Mutual Fund:
Mutual funds also offer good investment opportunities to the investors. Like all investment
alternatives mutual fund also carry certain risks. The investors should compare the risks and
expected yields after adjustment of tax on various instruments while taking mutual fund
investment decisions. The investor may seek advice from experts and consultants including
agents and distributors of mutual funds schemes while making investment decisions. Mutual
funds are portfolio of stock market and other financial instruments built with funds collected
from small investors whose primary concern is security of instrument. These funds are run by
government trusts, banks and now private financial institutions as well. Mutual fund is an
investment alternative that pools money from shareholder or investors and invest in a variety of
securities, such as stocks, bonds and money market instruments. Mutual funds invest pooled cash
of many investors to meet the fund’s stated investment objectives. Mutual funds stand ready to
sell and redeem their shares at any time at the fund’s current net asset value; total assets divided
by shares outstanding.
In simple words, mutual fund is a mechanism for pooling the resources by issuing units to the
investors and investing funds in securities in accordance with objectives as disclosed in offer
document.
Investments in securities are spread across a wide cross-section of industries and sectors and this
risk is reduced. Diversification reduces the risk because all stocks may not move in the same
direction in the same proportion at the same time. Mutual fund issues units to the investors in
accordance with quantum of money invested by them. Investors of mutual funds are known as
unit holders. The profit or loses are shared by the investors in proportion to their investments.
The mutual funds normally come out with a number of schemes with different investment
objectives which are launched from time to time. In, India mutual fund is required to be
registered with securities and exchange board of India (SEBI) which regulates securities markets
before it can collect funds from the public. In short, a mutual fund is a common pool of money in
to which investors with common investment objectives place their contributions that are to be
invested in accordance with the stated investment objectives of the scheme. The investment
manager would invest the money collected from the investor in to assets that are defined/
permitted by the stated objective of the scheme. For, example an equity fund would invest equity
and equity related instruments and a debt fund would invest in bonds,debentures, gilts etc.
Mutual fund is a suitable investment for the common man as it offers an opportunity to invest in
a diversified, professionally managed basket of securities at a relatively low cost.
Unit Trust of India (UTI) was the first mutual fund set up in India in the year 1963. In early
1990’s government allowed public sector banks and institutions to set up mutual funds. UTI has
an extensive marketing network of over 40000 agents all over the country. In the year 1992,
Securities and Exchange Board of India (SEBI) Act was passed. The objectives of the SEBI are
to protect the interest of investors in securities and to promote the development and to regulate
the securities market. In 1995, the RBI permitted private sector institutions to set up Money
Market Mutual Funds (MMFs). They can invest in treasury bills, call and notice money,
commercial paper, commercial bills accepted/co-accepted by banks, certificates of deposit and
dated government securities having unexpired maturity up to one year. As far as mutual funds
are concerned, SEBI formulates policies and regulates the mutual funds to protect the interest of
the investors. SEBI notified regulations for the mutual funds in 1993. There after mutual funds
entities were allowed to enter the capital market. The regulations were fully revised in 1996 and
have amended thereafter from time to time.
Types of Mutual Fund schemes:
1) Mutual fund schemes according to maturity period: A mutual fund scheme can be classified
into open-ended scheme or close-ended scheme depending on its maturity period.
a) Open-ended fund: An open-ended mutual fund is on that is available for subscription and
repurchase on a continuous basis. These funds do not have a fixed maturity period. Investors can
conveniently buy and sell units at NAV related prices which are declared on a daily basis. The
key feature of open-ended schemes is liquidity.
b) Closed-ended fund: A close-ended mutual fund has a stipulated maturity period for example 5
to 7 years. The fund is open for subscription only during a specified period at the time of launch
of the scheme. Investors can invest in the scheme at the time of the initial public issue and
thereafter they can buy or sell the units of the scheme on the stock exchanges where the units are
listed. In order to provide an exit route to the investors, some close ended funds give an option of
selling back the units to the mutual fund through periodic repurchase at NAV related prices.
SEBI regulations stipulate that at least one of the two exit routes is provided to the investor that
is either repurchase facility or through listing on stock exchanges. These mutual fund schemes
disclose NAV generally on weekly basis.
2) Mutual fund schemes according to investment objectives:
A scheme can also be classified as growth fund, income fund, or balanced fund considering its
investment objectives such schemes may be as follows:
a) Growth/equity oriented schemes: The aim of growth funds is to provide capital appreciation
over the medium to long-term. Such schemes normally invest a major part of their corpus in
equities. Such funds have comparatively high risk. These schemes provide different options to
the investors like dividend option, capital appreciation, etc. and the investors may choose an
option depending on their preference. The investors must indicate the option in the application
form. The mutual funds also allow the investors to change the option at a later date. Growth
schemes are good for investors having long-term outlook seeking appreciation over a period of
time.
b) Income/Debt oriented scheme: The aim of income funds is to provide regular and steady
income to investors. Such schemes generally invest in fixed income securities such as bonds, co-
corporate debenture government securities and money market instruments. Such funds are less
risky compared to equity schemes. These funds are not offered because of fluctuations in equity
markets. However, opportunities of capital appreciation are also limited in such funds. The
NAV’s of such funds are affected because of change in interest rates in the economy. If the
interest rates fall, NAV of such funds are likely to increase in the short run and vice versa.
However, long term investors may not bother about these fluctuations.
c) Balanced Fund: The aim of balanced funds is to provide both growth and regular income as
such schemes invest both in equities and fixed income securities in the proportion indicated in
their offer documents. These are appropriate for investors looking for moderate growth. They
generally invest 40-605 in equity and debt instruments. These funds are also affected because of
fluctuations in share prices in the stock markets. However, NAV’s of such funds are likely to be
less volatile compared to pure equity funds.
3) Mutual fund schemes according to money market and liquidity:
These funds are also income funds and their aim is to provide easy liquidity preservation of
capital and moderate income. These schemes invest exclusively in safer short-term instruments
such as treasury bills, certificate of deposit, commercial paper and inter-bank call money,
government securities etc. Returns on these schemes fluctuate much less compared to other
funds. These funds are appropriate for corporate and individual investors as a means to park their
surplus funds for short periods. Followings are the mutual funds schemes according to money
market and liquidity.
a) Gilt fund: These funds invest exclusively in government securities. Government securities
have no default risk. NAV’s of these schemes also fluctuate due to change in interest rates and
other economic factors as is the case with income or debt oriented schemes.
b) Index funds: Index funds replicate the portfolio of a particular index such as the BSE sensitive
index, S & P NSE 50 index, etc. These schemes invest in the securities in the same weight age
comprising of an index. NAV’s of such schemes would rise or fall in accordance with the rise or
fall in the index, though not exactly by the same percentage due to some factor known as
“trading error” in technical terms. Necessary disclosures in this regard are made in the offer
document of the mutual fund scheme. There are also exchange traded index funds launched by
the mutual funds which are traded on the stock exchanges.
3.4 Post office:
In India, there are many small saving investors present. Taking this fact in to consideration, there
is need for an institution which will provide better aid for the development of this class. The
financial service offered by post includes savings and postal life insurance and rural postal life
insurance. The Indian post is 150 years old institution and has reached in every corner of the
country. Post office has serve country with its full potential; it has become the milestone in the
socioeconomic development of country. Many small saving investors in rural areas have easy
access to invest in post office schemes. The post office savings scheme provides a secure, risk
free and attractive investment option for the small investors and offers the savings products
across its 155000 Post Offices.
The post office savings bank is the oldest and by far the largest banking system in the country,
serving the investment need of both urban and rural clients. These services are offered as an
agency service for the Ministry of Finance, government of India.
Different types of Schemes in the post office are discussed as follow:
a) Savings Bank Account (SB): Post office saving account is similar to a saving account in a
bank. It is a safe investment alternative to park those funds, which an individual investor
might need to cash fully or partially at very short period of time. This account suits for those
people who live in rural and semi-rural areas where bank facilities are very less. This account
can be opened with minimum of Rs.50 and maximum of Rs.1, 00,000 by an individual. For a
joint account the upper limit is Rs.2, 00,000 but there is no limit for group, institutional or
official capacity account. Withdrawal from the account is by cheque and there are no
restrictions on withdrawals, unlike commercial banks. Accounts have to maintain minimum
balance. The rate of interest is defined by the central government from time to time.
b) Recurring Deposit Account (RD): Recurring deposit account is a systematic way of saving
money. The scheme is meant for those investors who want to deposit a fixed amount
regularly on monthly basis in order to get lots of sum after 5 years on the maturity of the
account. The recurring deposit account can be opened at any post office. Period of maturity
of account is 5 years. Sixty equal monthly deposits shall be made in an account in multiples
of Rs.5 subject to a minimum of Rs.10. The scheme covers free life insurance cover after
receiving contributions for 24 months on account of denomination of Rs. 5, Rs. 10, Rs. 15 or
Rs. 20. In the event of death of the depositor after a minimum period of two years from the
date of opening account, the heir nominee will get the full maturity value of the account
provided the depositor’s age was between 8 and 53 years and there have been no withdrawals
or defaults during the first two years and the account remains current at the time of death.
The benefits of cover are not available for an extended period of deposit beyond five years.
Premature closure of account is permissible after expiry of three years. In case of premature
closure of account, the interest at the rate applicable to post office saving account shall be
payable.
c) Monthly Income Scheme: Monthly Income Scheme (MIS) provides for monthly payment of
interest income to investors. It is meant for investors who want to invest a lump-sum amount
initially and earn interest on a monthly basis for their livelihood. The scheme is therefore,
good for retired persons. The account can be opened by a single adult or 2-3 adults jointly.
Period of maturity of an account is six years. Only one deposit can be made in an account.
Minimum deposit limit is Rs.1000. Maximum deposit limit is Rs.3 lacks in case of single
account and Rs.6 lacks in case of joint account. Interest 8% per annum is payable monthly. In
addition, bonus equal to 10% of the deposited amount is payable at the time of repayment on
maturity. Premature closure facility is available after one year subject to condition. Income
tax relief is available on the interest earned.
d) Public Provident Fund (PPF): Public Provident Fund, popularly known as PPF, is a saving
cum tax saving instrument. It also serves as a retirement planning tool for many of those who
do not have any structured plan covering them. Public Provident Fund account can be opened
at designated Post Offices throughout the country and at branches of Public sector banks
throughout the country. The account can be opened by an individual in his/her own name, on
behalf of minor of whom he/she is a guardian, or by a Hindu undivided family. Minimum
deposit required in PPF account is Rs.500 and maximum deposit limit is Rs.70, 000 in a
financial year. The account matures for closure after 15 years. Account can be continued with
or without subscription after maturity for block periods of five years. Premature withdrawal
is permissible every year after completion of 5 years from the end of the year of opening the
account. Loan from the account at credit in PPF account can be taken after completion of one
year from the end of each financial year of opening the account and before completion of the
5th year. Interest at the rate notified by the central government from time to time is
calculated and credited to the account at the end of each financial year. Presently, the rate of
interest is 8% per annum. Income tax rebate is available on the deposit made under section
88 of Income Tax Act, as amended from time to time. Interest credited every year is tax-free.
e) Time Deposit (TD): Fixed deposit option for period ranging from one, two, three to five
years with facility to draw yearly interest offered at compound rates. Automatic credit facility
of interest to saving account is given. Rate of interest varies accordingly to the period of
deposit and is decided by the central government time-to- time. They are suitable for capital
appreciation in the sense that money grows at a predetermined rate. In this return
commensurate with the risk, the rate of growth is also high, and time deposits return a lower,
but safer investment. The investors can borrow against this time deposit.
f) Senior citizens savings scheme (SCSS): Senior citizens savings scheme offers fixed
investment option for senior citizens for a period of five years which can be extended, at a
higher rate that are paid in quarterly instalments.
g) National Savings Scheme: National Saving Scheme (NSS) offers an assured return and tax
rebates under section 88 of the Income Tax Act, 1961. National Saving Schemes units are
issued in various denominations with the minimum investment being Rs.100. There is no
prescribed upper limit on investment. However, the scheme offers a coupon of 9 percent as
compared to 9.5 percent offered by NSC. Moreover, the interest is compounded annually as
against semi-annually in NSC. NSS has duration of four years as compared to NSC, which
has duration of six years. The investor can extend the duration of NSS units thereafter if the
investors so desire. The NSS does not offer the benefits of liquidity. There is no premature
withdrawal facility except in case of the death of the holder. However, the interest accrued on
NSS can be withdrawn at any point. The deposit (principal) withdrawn only on maturity of
the instrument at the end of four years and the account can be closed at the discretion of the
investor.
h) National Saving Certificates: National Saving Certificates, popularly known as NSC, is a
time-tested tax saving instrument that combines adequate returns with high safety. National
Saving Certificate can be purchased by an adult in his/her own name or on behalf of a minor,
a trust, two adults jointly, Hindu undivided family etc. National Saving certificates are
available in the denominations of the Rs. 100, Rs. 500, Rs. 1000, Rs. 5000 and Rs.10, 000.
There is no maximum limit on the purchase of the certificates. Period of maturity of
certificates is six years. Presently, maturity value of a certificate of Rs. 100 denomination is
Rs. 160.10. Maturity value of a certificate of any other denomination is at proportionate rate.
Premature encashment of the certificates is not permissible except at a discount in the case of
death of the holder(s), forfeiture by a pledge and when ordered by a court of law. Interest
accrued on the certificates every year is liable to income tax but deemed to have been
reinvested. Income tax rebate is available on the amount invested and interest accruing under
section 88 of Income Tax Act, as amended from time to time. Income Tax relief is also
available on the interest earned as per limit fixed vide section 80L Income Tax, as amended
from time to time.
i) 10 Years Social Security Certificates: These certificates can be purchased by person in the
age group of 18-45 years. The minimum investment amount is Rs. 500. The maturity period
of these instruments is 10 years and the rate of interest is compounded annually. The interest
qualifies for deduction up to a maximum of Rs. 7000 under section 80L of the Income Tax
Act. These certificates can be withdrawn premature after 3 years of the date of issue. In case
of the death of the certificate holder before expiry of 2 years from the date of issue due to
non-natural causes (excepting suicide), the legal heir/nominee are entitled to receive an
amount equal to 3 times the face value of the certificates.
j) National Saving Certificates (VIII Issue): Such certificates are available in denominations of
Rs. 100, Rs. 500, and Rs. 1000, Rs. 5000 and Rs. 10000. The interest on it is compounded
half-yearly. The term of deposit is 6 years and premature encashment is not generally
possible. The amount invested in this scheme qualifies from tax rebate of 20% up to a
maximum of Rs. 50,000. The interest accrued is exempt from tax up to Rs. 7000 under sec.
88 and is paid back at the time of maturity. The National Saving certificates can be purchased
from the Post Office can be pledged as security for loan and provide nomination facility.
k) Twelve Years National Saving Annuity Certificates: This scheme provides a retirement plan.
The rate of interest is the same as in NSCI Issue, though the manner of payment of interest is
different. The annuity certificates are available only in higher denominations of Rs. 3200 and
Rs. 6400. The deposits amount can be made either in lump sum or in periodic instalments
spread over a period of two years. From the 61st month onwards, the depositor starts
receiving a monthly annuity (Rs. 50 for certificates of Rs. 3200 and Rs. 100 for certificates of
Rs. 6400) for seven Years at the end of which the holder gets Rs. 4320 and Rs. 8640
respectively. In case of any default in payment of instalment, either the period is extended by
one year, till the instalment have been paid, or the defaulter instalment are paid in a lump
sum along with simple interest at a fixed percent per annum. The amount deposited is also
refunded, if required during the Period of deferment with simple interest. The payments
received in respect of these certificates are liable to income tax.
l) Kisan Vikas Patra: Kisan Vikas Patra (KVP) is a saving instrument that provides interest
income similar to bonds. Amount invested in Kisan Vikas Patra doubles on maturity after 8
years and 7 months. Kisan Vikas Patra can be purchased by an adult in his/ her own name, on
behalf of a minor, a minor, a trust, two adults jointly. Kisan Vikas Patras available in the
denominations of Rs. 100, Rs. 500, Rs. 1000, Rs. 5000 and Rs. 10,000 and Rs. 50,000. There
is no maximum limit on purchase of KVPs. Premature encashment of the certificate is not
permissible except at a discount in the case of death of the holder(s) forfeiture by a pledge
and when ordered by a court of law. No income tax benefit is available under the Kisan
Vikas Patra scheme. However, the deposits are exempt from tax deduction at source (TDS) at
the time of withdrawal.
m) Indira Vikas Patra: These instruments are available at post office and can be purchased by
any person. Minimum investment in Indira Vikas Patra is Rs. 100 and there is no maximum
limit. These are available in the maturity denomination of Rs. 200, Rs. 500, Rs. 1000 and Rs.
5000 and the investor has to pay half the face value. The initial amount is doubled in 5 years
and these Patras cannot be enchased premature. The interest of Indira Vikas Patra is
compounded annually, is payable on maturity only and is taxable. These instruments are like
bearer-bonds and hence have to be carefully preserved.
3.5 Public deposit:
In India, Companies’ Act 2013 provides that companies can accept deposit directly from the
public. It is one of the best alternatives in investment as this mode of the raising funds is very
popular among the companies in India which helps to boost the investment environment and
provide better opportunities for the investors. As per the provisions of the Companies Act, a
company cannot accept deposits for a period of less than 6 months and more than 36 months.
The acceptance of public deposits is an important technique for meeting the financial
requirement of company. Bank credit is easily available to the companies but they charge high
rate of the interest which sometimes is a huge expense for the company’s balance sheet. Also
there are chances of increasing the bank rate depending upon the Reserve Bank of India’s
polices. Apart from this, the bank rate is always costlier to the industries as they need lots of fund
for working capital. Another important factor is credit control and taxation polices attached with
it. To reduce all such factors public deposit is the best option for the industries. As per investors’
point of view, this is good option to utilize the surplus amount of investment in such industries.
Companies need huge number of funds to manage the working capital. The internal sources tend
to dry up gradually with inflation. In such conditions the company may raise fund through
shares, debentures, bonds, long term loans, bank loans, trade creditors and public deposit. In
these funds, public deposit is a cheaper way of raising funds. The regulatory measures of the
government and the Reserve Bank of India in the direction of credit control have seriously
affected the availability of the funds to meet the requirements of the companies. In such a
situation, financial managers of the private companies have opted to the public deposit to meet
the requirement of the funds on daily basis. In this run many companies have introduced new
schemes to attract the public deposit with high rate of interest. Section 58A of the Companies
Act provides that "deposit" means "any deposit of money with, and includes any money
borrowed by, a company, but shall not include such categories of amount as may be prescribed in
consultation with the Reserve Bank of India." Rule 2(b) of the Companies (Acceptance of
Deposit) Rules, 1975, defines "deposit" as meaning "any deposit of money with, and includes
any amount borrowed by a company," and enumerates some categories of loans or deposits, as
stated in sub-clauses (0 to (x), which are not treated as deposits for the purpose of the Rules.
Thus certain types of borrowings/deposits are treated as 'exempted borrowings', to which the
restrictive provisions of these Rules do not apply. Such exemption can be given by Rules, as
contemplated by the definition of "deposit" in Section S8A mentioned above. Thus, the term
"deposit" connotes deposits other than exempted borrowings. In the Reserve Bank of India Act,
1934 (as amended by the Amendment Act of 1974) the term "deposit" is defined as including
"any money received by a non-banking company by way of deposit or loan or in any other form,
but shall not include amounts raised by way of share capital.. .. Under the directions issued by
the Reserve Bank to non-banking institutions in exercise of its powers under Sections 45-J, 4S-K
and 45-L of the Reserve Bank of India Act, 1934, certain categories of amounts have been
excluded from the definition of the term "deposit".
Thus after understanding the various terms and conditions applied to the public deposit this
investment alternatives is very attractive to the short term investors and is also good for tax
exemption. It is also considered as safe investment option. Proper knowledge about the company
and the sector in which company is present is very important from the point of view of investors.
Companies should always aim and ensure in gaining the confidence of the investors. On
maturity, the depositor has to return the deposit receipt to the company and the company pays
back the deposit amount. The depositor can renew his deposit for further period of one to three
years at his option. Many companies are now supplementing their fixed deposit scheme by
cumulative time deposit scheme under which the deposited amount along with interest is paid
back in lump sum on maturity.
 Merits of public deposit:

1. It is very easy to acquire finance from the investors in form of deposit as it is rewarding
for the investors too.
2. In public deposit scheme investors get tax reduction on the interest paid.
3. Administrative cost of issuing a public deposit is lower and is fixed in comparison to the
share and debentures.
4. Since the rate of the interest paid on the public deposit is fixed it helps to attract the
investor.
5. The risk involved is limited particularly when money is deposited with the reputed
company.
 Demerits of public deposit:
1. Public deposits are uncertain and unrealistic forms of financing.
2. Public deposit is available for the short period of time.
3. There are chances that management may misuse the fund which is raised from public
deposit.
3.6 Bank deposit:
Banks play an important and pivotal role in the financial system. Bank deposit is quite popular
among the investors as investment of surplus money is done into it. Banks also need working
capital. Bank collects their working capital for their business through bank deposit. The deposit
is given by the investors or customer for the specific period of time on which bank pays the
interest. In India all banks provide interest on the deposit. Deposit can be accepted from an
individual, financial institution, any organization, and government. The profitability of the banks
depends upon the deposit collected.
Banks mainly mobilize fund for short term and medium term finance purpose. In recent times
commercial banks also provides long term investment option to the investors. The main factor
which helps in the formation of capital is the accumulation of capital. Banking system is the
integral part of investment system productive sector. When investors deposit money in the bank,
it must invest the money in the new ventures that will increase the deposited money. The interest
rate on the fixed deposit differs from bank to bank, but traditionally Reserve Bank of India use to
regulate it and so every bank had same interest rate. Now the conditions are different. Present
trend indicates that the private sector and foreign banks give more interest on the deposit and so
investors are attracted towards it. Again there is risk involved in dealing with these banks.
Investor should invest after taking into consideration all aspects of risk. Fixed deposit amount is
paid with interest on maturity. One can go for loan against fixed deposit. Interest can be
transferred to bank account of the investor. To do any type of transaction with the bank investors
needs to open an account with that particular bank. As per the requirements of the investors the
bank account can be opened. There are different types of bank accounts as discussed individually
below:
Types of bank account:
1. Savings Account: As a person does not know what will happen in the future, money should
be saved for unexpected events and emergences. Without savings uncertain events can
become large financial burden. Therefore, savings helps an investor become financially
secure. These accounts are one of the most popular among the individual investors. These
accounts not only provide cheque facility but also have lots of flexibility for deposit and
withdrawal of funds from the account. Most of the banks have rules for the maximum
number of withdrawals in a period, maximum amount of the withdrawal. This type of
account is the most useful one for the small investors in India. However, banks have every
right to impose restriction on the misuse of this account as current account. Banks are free to
decide the interest rate on the savings account.
2. Current Deposit Account: Current accounts are basically used by Businessman and usually
are not used for investments and savings purpose. This deposit is the most liquid deposits and
therefore there is no limitation for the withdrawals. Most of these accounts are opened in the
name of firm or company. No interest is paid by bank on these accounts.
3. Recurring Deposit Account: These are popularly known as RD accounts and are special kind
of the term deposits and suitable for the people who do not have savings, but are ready to
save small amount of money on monthly basis. In this type of account the interest is earned
on the amount already deposited at the same rate as applicable on fixed deposit. This option
is the best for investors who are interested in the savings for children education, marriage as
it is long term in nature. A fixed amount has to be deposited monthly without failure.
Premature withdrawals of accumulated funds are allowed however penalty is applied by
some of the banks.
4. Fixed Deposit Account: These facilities are offered by every bank as it proves to be a source
for the working capital of banks. Fixed deposit schemes with a wide range of tenures for
periods from 7 days to 10 years are present in the banks. In some countries it also known as
term deposits or bonds. The term “fixed” in fixed deposit denotes the period of maturity or
tenor. Therefore, the depositors are supposed to continue such deposits for the length of time
for which the depositors decides to keep the money with bank. In case of emergence,
investors has two options regarding withdrawal of these funds, one by taking loan against the
deposit and second by paying penalty. The rate on these deposits keep on changing
frequently as market goes up rates goes up and vice versa. While in some schemes, interest
rate is constant till maturity. Private sector banks provide good rate of interests.2
 Merits of bank deposits:

1. Any individual of major age can open accounts in the bank.
2. Deposit in the bank is secure and safe.
3. Money can be deposited at any time in the account with many options and modes available.
4. Interest paid on the bank deposit helps to low the burden of expense on the investors. Interest
is paid as monthly, quarterly, 6 monthly and yearly. Senior citizens are offered little higher
rate of interest.
5. Bank deposits have high liquidity for the fund invested by the investors.
6. Banks even gives loan on the fixed deposit receipts.
7. Procedures and formalities involved in the bank investment are limited, simple and quick.
8. Banks offer various services to its customers and investors.
9. Banks offer reasonable return on the investment made that too in regular manner.
 Demerits of bank deposits:

1. The rate of return on the investments is very low in comparison to other alternatives of the
investments.
2. The returns on the investment sometimes are so low that it’s even hard to meet the present
day of inflation.
3. Terms and conditions on the investments are very complicated and not easy to be understood
by any investors.
4. Government and regulatory bodies are a hindrance in the growth of banks with more
potential.
5. Delay of the payments due to system problems is a major problem now-adays in bank
transactions.
3.7 Real Estate:
The land is limited on the earth but the population is increasing day by day. With this the prices
of real estate are also increasing day by day. Investments in real estate includes properties like
building, flats, row house, land, agriculture land, plots near cities, tourist place, famous spots etc.
Real estate transactions can be done by sales, leasing and exchanges. Real estate investment
alternative requires huge funds. It is most profitable as well as good investment alternative today.
It gives highest rate of return in comparison to other investment alternatives. The theory of
demand and supply is applicable in the real estate, as the demand for the land is high but the
supply is limited so the price is increasing. In short period of time, more profit can be made in
real estate.
Types of Real Estate:
1. Commercial Property: Commercial property is one of the best investment alternatives

now a day. Long term planning may result in good future gains. Commercial property
includes N.A. plots, residential buildings, malls, urban land and flats. It gives reasonable
returns on the investment. There is low risk but also no liquidity. The interest paid on
borrowing of commercial property is exempted from the tax. This type of property is
also used as security for raising loans. There is quick appreciation in the value of the
asset. The risk in the investment is very high in comparison to investment in banks,
mutual funds and shares. Despite of availability of more rationally priced options,
investing in the real estate is not so easy. Thus property is purchased taking into
consideration of business purpose. It is very hard for common investor to afford such
huge investment option. The only purpose is to make huge profit out of such property.
2. Residential property: Residential property now a days have become a necessity. This
option is safe from the point of view of retirement. It acts as one useful family asset with
saleable value. It is a long term investment and so needs proper planning and execution
from investors. The government provides tax incentive to an individual for investing in
the residential properties. In India Prime Minister has introduced a new scheme for the
people without house known as Pantpradhan Aawas Yojana. The interest is paid by
government on the loan of 6 lakhs. The investment is also safe and secure.
 Merits of investment in Real estate:

1. It is a profitable investment avenue.
2. In short time more chances of profit.
3. Can raise loan against the real estate at hard times.
4. The prices of real estate are increasing day by day.
5. It is one of the attractive investment options for affluent investors.
 Demerits of investment in Real estate:

1. The risk is more in comparison to other investment alternatives.
2. This alternative requires huge funds and cannot be affordable by common investors.
3. The government rules and regulations regarding buying and selling of the property are
troublesome in case of real estate.
4. Stamp duty, registration and legal formalities are complicated.
5. There is also chance of getting cheated during purchases and sale of property.
6. The amount of investment is huge and therefore the benefits of diversification are not
available.
3.8 Investment in Gold and Silver:
Since ancient times gold and silver is supposed to be the best option for investment by investors.
Even old coins were made of gold and silver. They both are precious metal. It is the most liquid
asset. Gold and silver rates are increasing day by day. Gold stock in the world is very limited.
Everyone is attracted towards collecting gold and silver ornaments or coins. As gold is present in
very less quantity so there is a great demand for it. Silver is also known for its volatile rate. The
prices of these metals depend upon the demand and supply. Gold and silver is also used as a
store of wealth. They also act as secret assets. The return on investment is increasing with the
price fluctuation. The investment in gold and silver is always more safe and secure. The
advantage of capital appreciation is always present in gold and silver investment.
The only threat with this metal is of robbery. This risk factor is always attached with it. It can be
long, medium and short term investment depending upon the needs of investors. Income on
regular basis is not present in this investment. Investment in gold and silver can be present in
physical or non-physical form depending upon convenience of investors. The physical form
includes bullion, coins, and jewellery. The nonphysical form includes futures contract, units of
gold exchange traded funds and shares of gold and silver mining companies. Gold ETF’s were
permitted in India since March 2007. By studying the figure below one can understand the price
history of 10gms of gold for the last 86 years.
 Merits of investment in Gold and Silver:

1. Gold and silver have been good hedges against inflation.
2. They are highly liquid with very low trading commission.
3. Gold and silver provides good diversification option for the investors.
4. They are also present in the electronic form and can be traded from anywhere.
5. The investment is safe and secure.
 Demerits of investment in Gold and Silver:

1. The purity is very hard to detect of gold and silver.
2. They do not provide regular income for investors.
3. Tax benefit is not present in this investment alternative.
4. Storage of these metals is very risky.
3.9. Commodities:
In economics, a commodity is generic term for any marketable item produced to satisfy wants or
needs. Economic commodities comprise goods and services. Commodities are unprocessed
physical goods that result from mining, drilling, and agriculture. For investors, commodities
offer attractive potential returns and diversification and are often used as a tool to hedge against
inflation. Commodities are raw materials that are used to create products which are consumed in
everyday life around the world. Commodities have played a major role in shaping the global
economy. Commodities are products that can be brought, sold and traded in various markets.
Hedging is essentially done by investors with an underlying risk in a commodity. It may be
either done by producers or consumers who want to transfer the price risk onto the market.
Participants in the commodity markets are producers, traders, commission agents, brokers,
importers, exporters and consumers. Commodities in Indian markets play a vital role, as 60% of
the people in India are engaged in the business of agriculture. Commodities help in the economic
development and growth of India. Investment in commodities needs constant watch on the
markets. It is also good diversification tool in the investment. The rate of return in commodities
is good in comparison to other investment tools. More research and study regarding the changes
in demand and supply of the goods with globally changing market is required. The import and
export of the particular product is to be observed to predict the price in commodities.
In India there are national and regional exchanges present National exchanges are NCDEX,
MCX and NMCE whereas regional exchanges are ICEX, NBOT and others. In the global
markets there are four categories of commodities in which trading takes place:
Energy (example crude oil, heating oil, natural gas and gasoline)
Metals (example precious metals such as gold, silver, platinum, base metal such as aluminum,
copper, lead, nickel, tin and zinc, industrial metal such as steel)
Livestock and meat (example lean hogs, pork bellies, live cattle and feeder cattle)
Agriculture (example corn, soybean, wheat, rice, coffee, cotton, and sugar).
There are main two types of commodities:
1. Soft Commodities: Soft commodities consist of agricultural products such as corn, soybean,
wheat, rice, coffee, cotton, and sugar.
2. Hard Commodities: Hard commodities consist of mined products such as crude oil, gold,
and silver.
 Merits of investment in commodities:
1. It gives direct exposure to global economic growth.
2. Both the returns and risk involved in commodities largely depend on those of bond and
equities. This makes it possible to improve return-risk profile.
3. Commodities can use to hedge against inflation, currency and geopolitical risk.
4. Gold plays an important role when it comes to diversification in times of volatile and
uncertain market.
5. There is no counterparty risk involved in investments that are physically deposited.
 Demerits of investment in commodities:

1. Commodity investment may be subject to market fluctuations in value.
2. Physical settlements may result in high cost.
3. Liquidity may be limited under the extreme market conditions.
4. Analysis of some commodities becomes very difficult due to lack of transparency.
3.10 Life Insurance
Life Insurance is a policy provided by an insurance company, according to which in exchange

for premium payments, the insurer is obliged to pay a certain sum (a lump sum or portions of
smaller sums) to the beneficiary in the event of insured death. Life Insurance is literally a matter
of life and death, since purchasing Life Insurance is basically planning for after the death. When
healthy and well, people from all walks of life prefer not to think that one day they would pass
away. However planning for after the death may be as important as planning other significant
actions in life. By paying a very small sum of money a person can safeguard himself and his
family financially from an unfortunate event. Life insurance provides economic support to the
dependent in family and in some cases can even create an estate for heirs.
Factor to be considered before buying an Life Insurance Policy
Before buying a Life Insurance Policy it is always important to find out why do I want to buy
Insurance and for what purpose. How much Life Insurance Cover do I need, comes second. Few
factors which need to be considered are:
• Age and number of dependents.

• Annual Income and Annual Expenses.
• Outstanding Liabilities like Home Loan, Car Loan etc. Investments and
Savings.
• Life Style Expenses. Money require in Future.
As a rule of thumb when buying first Life Insurance Policy it is suggested that person should
have Insurance Cover of at least 5 to 10 times of their annual income.
There are many different scientific methods available to access the total Life Insurance Cover.
The need for Insurance changes and increases with age depending on the combination of factors
stated above. It is advised that one should review his Insurance needs every 3 years. Every
individual is different and his needs are different and one set of rules for Insurance cannot be
applied to all. Life Insurance is a very important and integral part of Financial Planning for the
Future.
A wide range of insurance products are available in the market. Each insurance product is
different from the others having some unique attributes which are devised to meet specific needs
of different individuals. However, with such a wide range of products available, it becomes very
difficult for an individual to choose an insurance plan that is best suited to meet his requirements.
Based on the financial plans and needs and one's affordability to pay premium, an individual can
choose any of the plans available in the market. Some of those plans are listed in the table below:
Term Insurance
Term Insurance, as the name implies, is for a specific period, and has the lowest possible
premium among all insurance plans. Person can select the length of the term for which they
would like coverage, up to 35 years. Payments are fixed and do not increase during the term
period. In case of an untimely death, dependents will receive the benefit amount specified in the
term life insurance agreement. Term policies, cover only the risk during the selected term period.
If the policyholder survives the term, the risk cover comes to an end. Person can renew most
Term Insurance policies for one or more terms even if their health condition has changed. Each
time the policy is renewed for a new term, premiums may climb higher. When a policy holder
survives the policy term person is not entitled to any payment; the insurance company keeps the
entire premium paid during the policy period. So, there is no element of savings or investment in
such a policy. It is a 100 percent risk cover. It simply means that a person pays a certain
premium to protect his family against his sudden death. He forfeits the amount if he outlives the
period of the policy. This explains why the Term Insurance Policy comes at the lowest cost.
No surrender, loan or paid-up values are granted under term life policies because reserves are not
accumulated. If the premium is not paid within the grace period, the policy lapses without
acquiring any paid-up value. A lapsed policy can be revived during the lifetime of the life
assured but before the expiry of the period of two years from the due date of the first unpaid
premium on the usual terms. Accident and / or Disability benefits are not granted on policies
under the Term plan.
Endowment Insurance
Combining risk cover with financial savings, endowment policies is the most popular policies in
the world of life insurance. Endowment insurance are policies that cover the risk for a specified
period and at the end the sum assured is paid back to the policyholder along with all the bonus
accumulated during the term of the policy. The Endowment insurance policies work in two ways,
one they provide life insurance cover and on the other hand as a vehicle for saving. If the insured
dies during the tenure of the policy, the insurance firm has to pay the sum assured just as any
other pure risk cover. A pure endowment policy is also a form of financial saving, whereby if the
person covered remains alive beyond the tenure of the policy, he gets back the sum assured with
some other investment benefits. In addition to the basic policy, insurers offer various benefits
such as double endowment and marriage/ education endowment plans. The cost of such a policy
is slightly higher but worth its value. They are more expensive than Term policies and Whole life
policies. Normally the bonus in calculated on the sum insured but the only drawback is that the
bonuses are not compounded. Endowment insurance plans are best for people who do not have a
saving and an investing habit on a regular basis. Endowment Insurance Plans can be bought for a
shorter duration period. Endowment Insurance is ideal if person has a short career path, and hope
to enjoy the benefits of the plan (the original sum and the accumulated bonus) during life time.
Endowment plans are especially useful when person retire; by buying an annuity policy with the
sum received, it generates a monthly pension for the rest of the life.
Whole Life Insurance
Whole Life Policies have no fixed end date for the policy; only the death benefit exists and is
paid to the named beneficiary. In whole life insurance plan the risk is covered for the entire life
of the policyholder, irrespective of when it happens that is the reason they are called whole life
policies. The policy holder is not entitled to any money during his or her own lifetime, i.e., there
is no survival benefit. This plan is ideal in the case of leaving behind an estate. Primary
advantages of Whole Life Insurance are guaranteed death benefits, guaranteed cash values, and
fixed and known annual premiums. This policy, however, fails to address the additional needs of
the insured during his postretirement years. It doesn't take into account a person's increasing
needs either. While the insured buys the policy at a young age, his requirements increase over
time. By the time he dies, the value of the sum assured is too low to meet his family's needs. As a
result of these drawbacks, insurance firms now offer either a modified Whole Life Policy or
combine in with another type of policy.
Money-Back Plan
Money back policies are quite similar to endowment insurance plans where the survival benefits
are payable only at the end of the term period, plus the added benefit of money back policies is
that they provide for periodic payments of partial survival benefits during the term of the policy
so long as the policy holder is alive. An additional and important feature of money back policies
is that in the event of death at any time during the term of the policy, the death claim comprises
full sum assured without deducting any of the survival benefit amounts. The insurance premium
of Money Back Policies is higher than Term Insurance Policy because in Term Insurance there is
no survival benefit after the expiry of the insurance period. Money Back Policies are good for
people who want to insure their life and also want to some return from their investment's at a
later date. These policies are structured to provide sums required as anticipated expenses
(marriage, education, etc) over a stipulated period of time. With inflation becoming a big issue,
companies have realized that sometimes the money value of the policy is eroded. That is why
with-profit policies are also being introduced to offset some of the losses incurred on account of
inflation.
Money-Back plans are ideal for those who are looking for a product that provides both -
insurance cover and savings. It creates a long-term savings opportunity with a reasonable rate of
return, especially since the pay-out is considered exempt from tax except under specified
situations.
ULIP
Unit linked insurance plan (ULIP) is life insurance solution that provides for the benefits of risk
protection and flexibility in investment. The investment is denoted as units and is represented by
the value that it has attained called as Net Asset Value (NAV). The policy value at any time
varies according to the value of the underlying assets at the time. In a ULIP, the invested amount
of the premiums after deducting for all the charges and premium for risk cover under all policies
in a particular fund as chosen by the policy holders are pooled together to form a Unit fund. A
Unit is the component of the Fund in a Unit Linked Insurance Policy
The returns in a ULIP depend upon the performance of the fund in the capital market. ULIP
investors have the option of investing across various schemes, i.e., diversified equity funds,
balanced funds, debt funds etc. It is important to remember that in a ULIP, the investment risk is
generally borne by the investor.
In a ULIP, investors have the choice of investing in a lump sum (single premium) or making
premium payments on an annual, half-yearly, quarterly or monthly basis. Investors also have the
flexibility to alter the premium amounts during the policy's tenure. For example, if an individual
has surplus funds, he can enhance the contribution in ULIP. Conversely an individual faced with
a liquidity crunch has the option of paying a lower amount (the difference being adjusted in the
accumulated value of his ULIP). ULIP investors can shift their investments across various
plans/asset classes (diversified equity funds, balanced funds, debt funds) either at a nominal or
no cost.
Annuities and Pension
Insurance companies offer two kinds of pension plans - endowment and unit linked. Endowment
plans invest in fixed income products, so the rates of return are very low. A pension plan or an
annuity is an investment that is made either in a single lump sum payment or through instalments
paid over a certain number of years, in return for a specific sum that is received every year, every
half-year or every month, either for life or for a fixed number of years. Annuities differ from all
the other forms of life insurance in that an annuity does not provide any life insurance cover but,
instead, offers a guaranteed income either for life or a certain period. Typically annuities are
bought to generate income during one's retired life, which is why they are also called pension
plans. By buying an annuity or a pension plan the annuitant receives guaranteed income
throughout his life. He also receives lump sum benefits for the annuitant's estate in addition to
the payments during the annuitant's lifetime. Pension plans are perfect investment instrument for
a person who after retiring from service has received a large sum as superannuation benefit. He
can invest the proceeds in a pension plan as it is safest way of secured income for the rest of his
life. One can pay for a pension plan either through an annuity or through instalments that are
annual in most cases.
Types of Annuities / Pension Plans
Life Annuity: Guarantees a specified amount of income for lifetime. After death, the amount
invested is refunded to nominee.
Guaranteed Period Annuity: Provides specified income for lifetime and guarantees that nominee
will receive payments for a certain minimum number of years, even if person should die earlier.
In case person lives longer than the specified minimum number of years, they are entitled to
receive annuity payments for lifetime.
Annuity Certain: Under this plan, the stipulated annuity is paid for a fixed number of years. The
annuity payments stop at the end of that period, irrespective of how much longer person may
live. Deferred Annuities: The premiums paid into such plans may be deducted from one’s
taxable income at the time of payment. In addition, the interest earned on the annuities is not
taxed immediately. But the proceeds of the annuity will be taxable when they are paid to person.
CHAPTER 4
DATA ANALYSIS
Table 4.1: Table showing the distribution of respondent according to their Age
Age group of Respondent No. of Respondent Percentage
21-30 33 35.4%
30-45 34 36.6%
45-60 20 21.6%
60 above 6 6.4%
TOTAL 93 100
Source: Field survey, December 2020

Pie diagram shows the age of the respondent
Chart: 4.1 (Age of respondent)
6%
22% 35%
21-30
30-45
45-60
60 above
37%
Source: Table 4.1

INTERPRETATION:
From the above data it is seen that, 37% respondent are from the age of 30-45 whereas on
decreasing stage 35% respondent are from the age of 21-30 age and 22% respondent are from
45-60age group and only 6% people are above 60 age group.
Table 4.2 Table showing the Income distribution of the respondents
Income Respondent Percentage
Less than 1 lakhs 37 40%
1lakh-2lakhs 27 29%
2lakh-3lakh 17 18%
3lakh-4lakhs 10 11%
4lakhs above 2 2%
Total 93 100%
Sources: Field survey, December 2020
Pie diagram shows the income distribution of the respondent
Chart 4.2: Showing the income distribution of the respondent
2%
11%
less than 1 lakhs

40%
18% 1lakhs -2 lakhs
2lakhs -3 lakhs
3lakhs - 4lakhs
4lakhs above
29%
Source: Table 4.2

INTERPRETATION:
From the above data it is seen that, 40% respondents earns less than 1 lakh, 29% respondents
earns 1 lakh- 2 lakh, and 18% respondents earns 2 lakhs-3 lakhs, 11% respondents earns 3 lakhs4
lakhs and 2% respondents earns more than 4 lakhs.
Table 4.3: Table showing which type of investment avenues are the respondent aware of;
Avenues Respondent Percentage
Bank deposits 72 77%
Insurance 65 70%
Mutual fund 43 46%
Shares 35 38%
Postal deposits 28 30%
Public Provident fund(PPF) 23 25%
Gold 26 28%
Real estate 21 22%
Chart 4.3 showing which type of investment a respondent is aware of
22%
real estate 21
93
28%
gold 26
93
25%
public provident fund 23
93
30%
postal deposit 28
93
38%
share market 35
93
46%
mutual fund 43
93
70%
insurance 65
93
77%
bank 72
93
0 10 20 30 40 50 60 70 80 90 100
Percentage Respondent Total Linear (Total)
Source: Table 4.3

INTERPRETATION
From the above data it is seen that, 72 respondents i.e. 77% are aware of bank as their of
investment avenues whereas on a decreasing scale 65 respondents i.e. 70% are aware of
insurance as their of investment avenues. On the other hand, 43 respondents i.e. 46% are aware
of mutual fund as their of investment avenues, 35 respondents i.e. 38% are aware of share market
as their of investment avenues. For postal deposit, 28 respondents i.e. 30% have the awareness as
an investment avenue. 23 respondents i.e. 25% are aware of PPF as their of investment avenues
26 respondents i.e. 28% said they know about gold and 21 respondents i.e. 22% know about real
estate.
Table 4.4: table showing from which source a respondent does came to know about the
investment
Parameter Respondent
Newspaper 24
Publication media 26
Professional 17
Internet 14
Family and friends 12
Total 93
Chart 4.4: Showing from which source a respondent does come to know about the investment
30
25
26
Source:
24
Table 4.4
20
17
15
14
12
10
0
Newspaper Publication media professional internet family and friends
respondent
INTERPRETATION:
There are sources of information which are vital in making investment decision. The graph
shows the source of information which is plotted according to its authentication. On the X axis,
the extreme right indicates highest authentication and it gets reduced as we move to right. The
authentication of information plays an important role in right investment decision. We find that
majority of the respondents have taken investment decision on the bases of information provided
by publication media. The next major information source is Newspapers, which are considered to
be highly authenticated data. Help of professionals in investment decision is taken not by many,
due the fees charged by various professional for their service. There is less number of
respondents taking their investment decision on information provided by friends. Mostly the
information provide by such people is based on their experience which may not be true for
others. That is the reason that such source of information is considered less organized and
reliable.
Table 4.5 table showing how the respondent rate the risk associated in various investment
avenues
Parameter Respondent Percentage
High 22 23.6%
Moderate 65 70%
Low 6 6.3%
Total 93 100%
Source: field survey, December, 2020
Chart 4.5 Showing how the respondent rate the risk associated in various investment avenues
6%
24%
high
moderate
low
70%
Source: table 4.5

INTERPRETATION:
From the above data is it seen that 23.6% respondents rate the risk associated in various
investment avenues as high whereas 70% respondents rate the risk associated in various
investment avenues as moderate and 6.3% respondents rate the risk associated in various
investment avenues as low.
Table 4.6 Table showing the previous investment made by the respondent
Bank Deposit 91 97.8%
Insurance 45 48 %
Mutual Fund 33 35%
Share Market 19 20%
Postal Deposit 23 25%
Public Provident Fund (PPF) 11 12%
Gold 13 14%
Real Estate 7 7.5%
Source: field survey conducted on December 2020
Chart 4.6: showing the previous investment made by the respondent
8%
Real Estate 7
14%
Gold 13
12%
PPF 11
25%
Postal Deposit 23
20%
Share Market 19
35%
Mutual Fund 33
48%
Insurance 45
98%
Bank Deposit 91
0 10 20 30 40 50 60 70 80 90 100
Percentage Respondent
Source: Table 4.6

INTERPRETATION:
From the above data it is seen that 91 respondents i.e. 97.8% have done their investment as bank
deposits whereas on a decreasing scale 45 respondents i.e. 48% have done their investment in
insurance. On the other hand, 33 respondents i.e. 35% are have done their investment in mutual
fund, 19 respondents i.e. 20% have done their investment in share market. 23 respondents i.e.
25% have done their investment in postal deposit, 11 respondents i.e. 12% done their investment
in PPF, 13 respondents i.e. 14% have done their investment in gold and 7 respondents i.e. 7.50 %
have done their investment in real estate.
*NOTE: it is a question of multiple option selection.
4.7: Table showing the satisfaction level of the investor in his/her previous investment
Options Respondent Percentage
Highly Satisfied 19 20%
Satisfied 33 35%
Neutral 40 43%
Dissatisfied 0 0%
Highly Dissatisfied 1 2%
Total 93 100
Chart 4.7: showing the satisfaction level of the investor in his/her previous investment
2%
20%
Highly Satisfied
Satisfied
43%
Neutral
Dissatisfied
Highly Dissatisfied
35%
Source: table 4.7

INTERPRETATION:
From the above data it is seen that 20% of the respondents are highly satisfied with their
previous investment, 35% of the respondents are satisfied with their previous investment. 43% of
the respondents are neutral with their previous investment, no respondents are dissatisfied and
2% of the respondents are highly dissatisfied with their previous investment.
TABLE: 4.8: Showing how long does an investor like to hold his/her investment
1-3 Years 49 52.6%
4-6 Years 24 25.8%
7-10 Years 7 7.5%
More than 10 Years 13 13.9%
Total 93 100
Chart: 4.8 showing how long do an investor like to hold his/her investment
14%
8%
53%
1-3 years Source:
4-6 years
7-10 years
Table 4.8
26% more than 10 years
INTERPRETATION:
From the above data it is seen that 52.6% respondents likes to hold their investment for 1-3
years, 25.8% respondents likes to hold their investment for 4-6 years, 7.5% respondents likes to
hold their investment for 7-10 years and 13.9% respondents likes to hold their investment for
more than 10 years.
TABLE: 4.9: Showing how the investor invest his/her investment
Directly 66 70.9%
Through Professional (agent/brokers) 20 21.5%
Other 7 7.5%
Total 93 100
Source: Field survey conducted on December 2020
Chart 4.9: Showing how the investor invest his/her investment
8%
22%
Directly
Through Professional (agent/brokers
Other
71%
Sources: Table 4.9

INTERPRETATION:
From the above data it is seen that 70.9% of the respondents invest directly on their investment
whereas 21.5% of the respondents invest through professional (agent/brokers) and 7.5% of the
respondents invest through other means.
Table 4.10: Showing which sector an investor prefers to invest is money

Public Sector 56 60.2%
Private Sector 34 36.5%
Foreign Sector 3 3.2%
Total 93 100
Chart 4.10: showing which sector an investor prefer to invest is money
Foreign Sector
3%
Private Sector
37%
Public Sector
Public Sector Private Sector
60%
Foreign Sector
Source: Table 4.10

INTERPRETATION: From the above data it is seen that 60.2% respondents prefers to invest
their money in public sector whereas 36.5% respondents prefers to invest their money in private
sector and 3.2% respondents prefers to invest their money in foreign sector.
Table 4.11: Showing the percentage of money that an investor invest out of their monthly income
Parameter Respondent Parameter
Less than 20% 61 65.5%
Between 20%-35% 19 20.4%
Between 35%-50% 7 7.5%
More than 50% 6 6.4%
Total 93 100
Chart 4.11: Showing the percentage of money does an investor invest out of their monthly
income
6%
8%
20%
66%
Less than 20% Between 20%-35% between 35%-50% more than 50%
Source: Table 4.11

INTERPRETATION: From the above data it is seen that 65.5% respondents invest less than
20% out of their monthly income, 20.4% respondents invest between 20%-35% out of their
monthly income. 7.5% respondents invest between 35%-50% out of their monthly income and
6.4% respondents invest more than 50% out of their monthly income.
Table 4.12: Showing which mode of investment does an investor prefer

One time investment 61 65.5%
Systematic investment 32 34.4%
Total 93 100%
Chart 4.12: Showing which mode of investment does an investor prefer
34%
One time Invesment

66% Systematic Investment
Source: Table 4.12

INTERPRETATION: From the above data it is seen that 65.5% respondents prefers one time
investment whereas 34.4% respondents prefers systematic investment.
Table 4.13: Showing the factors which are responsible for investor’s investment decision
Liquidity 43 46.2%
High return 64 68.8%
Company image 27 29.0%
Price 37 39.7%
Diversification 14 15%
Professional Management 6 6.4%
Risk 30 32.2%
Chart 4.13: Showing the factor which is responsible for investor’s investment decision
32.20%
Risk 30
Professional
6.40%
Management 6
15.00%
Diversification 14
39.70%
Price 37
29.00%
Company Image 27
68.80%
High Return 64
46.20%
Liquidity 43
0 10 20 30 40 50 60 70
Source: Table 4.13

INTERPRETATION: From the above data it is seen that 46.20% respondents said that liquidity
is the factor which is responsible for investor’s investment decision, 68.80% respondents said
that high return is the factor which is responsible for investor’s investment decision, 29%
respondents said that company image is the factor which is responsible for investor’s investment
decision, 39.70% respondents said that price is the factor which is responsible for investor’s
investment decision, 15% respondents said diversification, 6.40% said professional management
and 32.20% said risk.
*NOTE: it is a question of multiple option selection.
Table.4.14: Showing the principle, investor consider while selecting an investment avenue
Finding outs company past performance 48 51.6%
Identifying your own objective 40 43.1%
Other 5 5.3%
Total 93 100
Chart 4.14: Showing the principle, investor consider while selecting an investment avenue
Finding out company past performance Identifying your own objective Other
5%
43% 52%
Source: Table 4:14

INTERPERTATION:
From the above data it is seen that, 51.6% respondents consider finding outs company past
performance while selecting an investment avenue, 43.1% respondents consider identifying their
own objective while selecting an investment avenue and 5.3% respondents consider other
alternatives while selecting an investment avenue.
Table 4.15: Showing how an investor prefer to invest is investment avenues

Monthly 38 40.8%
Quarterly 13 13.9%
Half yearly 13 13.9%
Annually 23 24.7%
Single one time 6 6.4%
Total 93 100%
Chart 4.15: Showing how an investor prefer to invest is investment avenues
Single one time

6%
Annually
25% Monthly
41%
Half yearly
14%
Quarterly
14%
Monthly Quarterly Half yearly Annually Single one time
Source: Table 4.15

INTERPRETATION: From the above data it is seen that, 41% respondents prefer to invest in an
investment avenue monthly, 14% prefer to invest in an investment avenue quarterly, 14%
respondents prefer to invest in an investment avenue half yearly, 25% respondents prefer to
invest in an investment avenue annually and 6% respondents prefer to invest in an investment
avenue one time.
Table 4.16: Showing does a financial literacy play an important role while making an investment
decision
Yes 72 77.4%
No 8 8.6%
Maybe 13 13.9%
Total 93 100
Chart 4.16: Showing does financial literacy play an important role while making an investment
decision
Maybe
14%
No
9%
Yes
77%
Yes No Maybe
Source: Table 4.16

INTERPRETATION: From the above data it is seen that 77.4% respondents said yes that
financial literacy play an important role while making an investment decision whereas 8.6%
respondents said no that financial literacy does not play an important role while making an
investment decision and 13.9% respondents said may be as they were unsure about financial
literacy.
Table 4.17: Showing how an investor rate the need of financial literacy
Very Good 33 35.4%
Good 29 31.1%
Average 21 22.5%
Poor 7 7.5%
Very Poor 3 3.2%
Total 93 100
Chart 4.17: Showing how an investor rate the need of financial literacy
Percentage Respondent
3.20%
Very Poor
3
7.50%
Poor
7
22.50%
Average
21
31.10%
Good
29
35.40%
Very Good
33
Source: Table: 4.17

INTERPRETATION: From the above data it is seen that 35.4% respondents rated the need of
financial literacy as very good, 31.1% respondents rated the need of financial literacy as good,
22.5% respondents rated the need of financial literacy as very average, 7.5% respondents rated
the need of financial literacy as poor and 3.2% respondents rated the need of financial literacy as
very poor.
Table 4.18: Showing does an investor have made any changes in Investment Avenue within the
last 5 years
Yes 50 53.7%
No 43 46.2%
Total 93 100
Chart 4.18: showing does an investor have made any change in investment avenues within the
last 5 years
46%
54%
Yes No
Source: Table 4.18

INTERPRETATION: From the above data it is seen that 53.7% respondents said yes that they
have made changes in their investment avenues within the last 5 years and 46.2% respondents
said no that they have not made changes in their investment avenues within the last 5 years.
Table4.19: Showing the intensity of change in priorities that an investor undertook over last 5
years for considering an investment avenues
Parameter Respondent Total
Least Low Moderate High
Security 9 11 48 25 93
Tax benefit 4 17 49 23 93
Return 10 16 43 24 93
Flexibility 12 17 46 18 93
Liquidity 5 22 47 19 93
Price 9 21 48 15 93
Diversification 11 21 47 15 93
Chart 4.19: Showing the intensity of change in priorities that an investor undertook over last 5
years for considering an investment avenues
Source: Table 4.19
INTERPRETATION:
From the above data analysis it is clear that the change in priorities that an investor undertook
over last 5 years for considering an investment avenues are been interpreted
On security aspect most of the respondent i.e.48 respondent rate moderate, 25 respondent rate
high, 11 respondent rate low and only 9 respondent have rated least.
48 49 48
46 47 47
43
25 24
23 22 21 21
18 19
17 16 17
15 15
11 12 11
9 10 9
4 5
Security Tax Benefit Return Flexibility Liquidity Price Diversification
Least Low Moderate High

On tax benefit aspect most of the respondent i.e. 49 respondent rate moderate, 23 respondent rate
On return aspect most of the respondent i.e.43 respondent rate moderate, 24 respondent rate high,
16 respondent rate low and only 10 respondent have rated least.
On flexibility aspect most of the respondent i.e.46 respondent rate moderate, 18 respondent rate
On liquidity aspect most of the respondent i.e., 47respondent rate moderate, 19 respondent rate
On price aspect most of the respondent i.e.48 respondent rate moderate, 15 respondent rate high,
21 respondent rate low and only 9 respondent have rated least.
On diversification aspect most of the respondent i.e.47 respondent rate moderate, 15 respondent
rate high, 21 respondent rate low and only 11 respondent have rated least.
Table 4.20: Showing the changes made in the investment avenues by the investor in respect with
rank wise (from1 to 5)
Rank 1 Rank 2 Rank 3 Rank 4 Rank 5

Bank 41 10 26 10 6 93
Deposit
Insurance 33 32 14 14 10 93
Mutual 29 13 27 12 12 93
Fund
Share 15 14 28 20 16 93
Market
Postal 39 19 13 14 8 93
Deposit
Public 32 12 18 14 17 93
Provident
fund (PPF)
Gold 24 20 18 14 17 93
Real 12 16 27 24 14 93
Estate
Chart 4.20: Showing the changes did the investor make in investment avenues on the rank wise
45
40 41
39
35
30 3332 32
29 28
25 26 27 27
24 24
20 21
20 19 20
15 18 17 18 17
1514 16 16
1414 13 1212 1314 14 14 14
10 12
10 10 10
5 8
6
0
ld
e
nd
e
t
sit
s it
d
ke
nc
t
Go
un
ta
Fu
po
po
ar
ra
tF
Es
de
De
M
su
l
ua
en
al
In
e
nk
al
ut
Re
ar
id
st
Ba
ov
Sh
Po
Pr
ic
bl
Rank 1 Rank 2 Rank 3 PuRank 4 Rank 5
Source: Table 4.20

INTERPRETATION:
From the table and data we can easily analysis the interpretation the change the investor make in
investment avenues on the rank wise
On bank deposit 41 respondent have rank 1, 10 respondent have rank 2, 26 respondent have
rank3, 10 respondent have rank4 and 6 respondent have rank 5.
On insurance 33 respondent have rank 1, 32 respondent have rank 2, 14 respondent have rank3,
14 respondent have rank4 and 10 respondent have rank 5.
On mutual fund 29 respondent have rank 1, 13 respondent have rank 2, 27 respondent have
On share market 15 respondent have rank 1, 14 respondent have rank 2, 28 respondent have
On postal deposit 39 respondent have rank 1, 19 respondent have rank 2, 13 respondent have
On public provident fund 32 respondent have rank 1, 12 respondent have rank 2, 18 respondent
have rank3, 14 respondent have rank4 and 17 respondent have rank 5.
On gold 24 respondent have rank 1, 20 respondent have rank 2, 18 respondent have rank3, 14
respondent have rank4 and 17 respondent have rank 5.
On real estate 21 respondent have rank 1, 16 respondent have rank 2, 27 respondent have rank3,
24 respondent have rank4 and 14 respondent have rank 5.
Table 4.21 showing the level of agreement with each of the following factor responsible for
investment
Parameter
Strongly Somewhat Neither Somewhat Strongly Total
Agree Agree Agree nor Disagree Disagree
Disagree
Low Risk 24 40 19 8 2 93
Liquidity 17 50 20 3 3 93
High 34 27 28 3 1 93
Return
Safety 32 37 15 6 3 93
Tax 34 21 32 3 3 93
Benefit
Chart 4.21 showing the level of agreement with each of the following factor responsible for
investment
Chart Title
50
45
40
35
30 Strongly Disagree
25
20
Neither Agree nor Disagree
15
10
5
Strongly Agree
0
Low Risk Liquidity High Return Safety Tax Benefit
Strongly Agree Somewhat Agree Neither Agree nor Disagree

Somewhat Disagree Strongly Disagree
Source: Table 4.21

INTERPRETATION:
From the above data we can interpretation
Low risk as a factor responsible for decision 24 respondent strongly agree 40 respondent
somewhat agree, 19 respondent are neither agree nor disagree whereas 8 respondent somewhat
disagree and only 2 respondent strongly disagree.
Liquidity as a factor responsible for investment decision 17 respondent strongly agree 50
respondent somewhat agree, 20 respondent are neither agree nor disagree whereas 3 respondent
somewhat disagree and only 3 respondent strongly disagree
High return as a factor responsible for investment decision 34 respondent strongly agree 27
Safety as a factor responsible for investment decision 32 respondent strongly agree 37
Tax benefit as a factor responsible for investment decision 34 respondent strongly agree 21
Table 4.22: showing the type of problem the investor face while investing in various investment
avenues
Strongly Somewhat Neither Somewhat Strongly
Agree Agree Agree nor Disagree Disagree
disagree
Lack of 38 35 14 4 2 93
awareness
Insufficien 14 43 27 9 0 93
t service
Lack of 22 28 31 7 5 93
confidence
Lack of 26 33 21 7 6 93
technology
Knowledg
e
Source: field survey conducted on December 2020
Chart 4.22: Showing the type of problem the investor face while investing in various investment
avenues
Strongly Agree Somewhat Agree Neither Agree nor Disagree
Somewhat Disagree Strongly Disagree
43
38
35
33
31
28
27
26
22
21
14
14
7
6
5
4
2
L ac k o f Aw ar en ess I n s u ffi c i e n t S e r v i c e L a c k o f C o n fi d e n c e L ac k o f Tec h n o l o gy

K n o w l ed ge
Source: Table 4.22

INTERPRETATION
From the above we can easily analysis that
Lack of awareness as a problem that an investor face while investing in various investment
avenues 38 respondent strongly agree 35 respondent somewhat agree, 14 respondent are neither
agree nor disagree whereas 4 respondent somewhat disagree and only 2 respondent strongly
disagree.
Insufficient service as a problem that an investor face while investing in various investment
disagree
Lack of confidence as a problem that an investor face while investing in various investment
disagree
Lack of technology knowledge as a problem that an investor face while investing in various
investment avenues 26 respondent strongly agree 33 respondent somewhat agree, 21 respondent
are neither agree nor disagree whereas 7 respondent somewhat disagree and only 6 respondent
strongly disagree
CHAPTER -5
5.1 FINDING
The main finding of the study are:
1. It is found the majority of the total respondent age were within the age range of 18-45 and
only few were within the range of 45- 60 and above 60 years.
2. It is found the majority of the respondent income per annum is around the range 1 lakhs under
as the income range increase the number of respondent decrease. But with greater income range
one can make better investment planning.
3. It was found that majority of the investor are aware of bank as their investment avenues
followed by the insurance and postal deposit and the least are aware of the real estate as their
investment avenues because of the higher capital requirement to hold a real estate properties.
4. There are sources of information which are vital in making investment decision. We find that
majority of the respondents have taken investment decision on the bases of information provided
by Agents & Broker of different financial company. The next major information source is
Newspapers, publication and media which are considered to be highly authenticated data. Help
of professionals in investment decision is taken not by many, due the fees charged by various
professional for their service. There is less number of respondents taking their investment
decision on information provided by friends. Mostly the information provide by such people is
based on their experience which may not be true for others. That is the reason that such source of
information is considered less organized and reliable.
5. It is found that majority of respondent feels that the risk associated in various investments
avenues are moderate adequate and few respondent feel that the risk associated in various
investment are low
6. Majority of respondent have already invested in bank followed by insurance and postal deposit
and very few respondent have already invested in real estate and gold or other less risk area
7. It is found from the study that majority of the respondent are neutral i.e. neither satisfied nor
dissatisfied with their previous investment and very few respondent are dissatisfied with their
previous investment.
8. The study reveals that the majority like to hold their investment around 1-3 years gap were as
few respondent like to hold their investment more than 7 years.
9. From the study it was found that majority of the total respondent invest their investment
directly and few respondent like to invest their investment from other sources
10.Majority of the respondent are likely to invest in the public sector main due to less risk in
nature whereas very few respondent are like to invest in foreign sector.
11. It is clearly found that majority of the respondent are like invest only less than 20% of their
income on various investment avenues, were very few respondent invest more than 50% on
various investment avenues.
12 It was found that majority of the respondent prefer one time investment.
13. It is clearly found from the study that the majority of the respondent like to take decision on
the basis of high return and very few respondent like to take decision on the basis of the
professional management.
14. From the study it was found that majority of the respondent like to find out the company’s
past performance as a principle before selecting an investment whereas very few respondent
consider other principle before selecting an investment.
15. Majority of the respondent prefer to invest their investment on monthly basis whereas very
few respondent prefer respondent prefer investment one time
16. It was found that majority of the respondent feel that financial literacy play an important role
while making an investment decision
17. The study reveal that the majority of the respondent rate the need of financial literacy should
be very good for make an investment decision.
18. The study found that the majority of the respondent have made their change in the investment
avenues in last 5 years.
19.
5.2 SUGESSTION
Investment is an art and not everybody possess this skill. However, those who do not possess this
skill need to make investments. Hence, it is obligatory to enhance maximizing the return by
effectively utilizing the hard earned money or saved by individuals. Through this study, the
following suggestions were made to the various participants to establish a good investment
planning. Well planned one is half-solved the issues. The present study brought down some of
the vital tool to make a good investment Planning.
5.2.1. SUGGESTION TO THE RESPODENTS
A general suggestion may not be appropriate to all individuals which may be considered is
inappropriate to a particular individual in the society. The Family life cycle acts as a summary
variable capturing the combined effects of income, age and important events in life (marriage,
birth of a baby and eventual departure of children, retirement etc.). For example, the family
expenses will be more in families in which children are present which will be result lesser
attention on investment planning and subsequent saving. Impulse purchases are necessary to
achieve the families expected standard of living
 Young and Free (18-35) – At this stage one must try and maximum his
investment in equity to benefit from compounding in the long run (or) for tax
benefit home purchase may be considered. One must establish financial
independence and also build a fund to meet emergencies (obtaining Health
Insurance).
 Just married – At this stage one must plan for a child, saving for a house and
retirement plans. Preferably, one must keep a marginally higher sum in a liquid
fund. So that he can meet emergencies without derailing his other financial goals.
The individual should carefully manage the increased need of credit.
 Ageing gracefully – This stage is also called as “Empty Nest”. An Individual has
to depend on pension (or) pension funds (or) Dividend/Interest income on
investment for his livelihood. So, one has to plan for living expenses, recreational
activities and may even think for part – time work.
5.2.2 SUGGESTIONS TO THE INTERMEDIARIES
Every intermediary has to take necessary steps to ensure that the client’s interest is protected.
The following are some of the suggestions to the intermediaries.
i. Provide full and latest information of about the schemes such as, performance reports,
fact sheets, portfolio disclosures and brochures, and recommend schemes appropriate
for the client’s situation and needs.
ii. Highlight risk factors of each scheme, avoid misrepresentation and exaggeration and
ask the investors to go through documents and information associated with selected
investment avenue.
iii. Disclose all information including all the commissions received for the different
competing schemes.
iv. Avoid commission driven malpractices such as (a) Recommending inappropriate
products solely because the intermediary is getting higher commissions (b)
encouraging over transaction and churning of investments to earn higher
commissions, even if they mean higher transaction costs and tax for investors.
v. Rebate the commission back to the investor and avoid attracting clients through
temptation of rebate or gifts.
vi. All employees engaged in sales and marketing of mutual funds should obtain
authorization certificate.
5.2.3 SUGGESTION TO THE REGULATORS
Regulating bodies like Reserve Bank of India, Securities and Exchange Board of India,
Insurance Development and Regulating Authority and other associates of the various financial
products. To ensure unbiased benefit to everyone involved in the market, they have taken many
measures. Still there are some setbacks in the smooth running and planning of financial related
activities.
The following are a few suggestions to reduce the risk of investors.
i. Regulars have to ensure transparency in all levels of operations. So that, everyone will
be in a position to understand the market to invest accordingly.
ii. SEBI along with AMCs and AMFI have been organizing many awareness campaigns on
mutual fund and stock market. Still it has not reach all levels of investors. More number
of awareness campaigns must be conducted in many places to educate all levels of
investors.
iii. Regulators have to make advertisement on common fraudulent activities, rights of
investors, grievances mechanism and cautions to the investors about the information
must be noted on their investment.
iv. Regulators must take action against involved persons on fraudulent activities, misleading
investors, misrepresentation of information at the earliest.
v. Punishments to the involved persons on various scandals and sensitive information must
be published or informed to the public through publicly accessible media.
vi. Regulators must ensure for fast grievances redressal against investors complaints to
improve their confidence on the market and to protect them.
vii. Regulators must take necessary steps to avoid the political influence on the performance
of the market.
5.3 CONCLUSION:
The investment behaviour has been changed considerably over the last couple of years. The
investment rate in India is comparatively higher than various other countries. Earlier the trend of
saving was in terms of physical assets but it has started to shift now to financial instruments. This
trend partially reflects the relentless expansion of the various branch networks of the financial
institutions into the county's rural areas and partially holds the increasing trend of the easy
accessibility of the alternative investment opportunities. Today corporate securities has become
a part of household savings wherein retail individuals prefer to invest his saving in security
market. The reason sited for this are the growth seen in the stock market and a low interest rate
and return offered by traditional instruments. Also the growing income of working class has also
contributed largely to the changing pattern of investment in India.
Over past 30 years, the prime two instruments for household long term saving like pension
saving and life insurance have come to an idle state. On the other hand, the mutual funds started
to become more successful in the early years of 1990s. Considering these two factors, we can
conclude two weaknesses of the investment market in India. First, public sector dominates the
markets. Second, the bank and insurance market
Regulating bodies like Reserve Bank of India, Securities and Exchange Board of India,
Insurance Development and Regulating Authority and other associates of the various financial
products. To ensure unbiased benefit to everyone involved in the market, they have taken many
measures
Reference
• Sikidar, S. and Singh, A. „Financial Services: Investment in Equity and Mutual Funds –
A Behavioural Study‟, In: Bhatia, B. and Batra, G., (Eds), Management of Financial Services,
New Delhi: Deep and Deep Publications, 1996, pp.136-45.
• Karthikeyan B. „Small Investors' Perception on Post Office Small Savings Schemes‟,
Unpublished Thesis, Madras University, Tamilnadu, India. 2001
• Somasundaram V.K. „A Study on Savings and Investment Pattern of Salaried Class in
Coimbatore District‟. Unpublished Thesis, Bharathiar University, Coimbatore, Tamilnadu, 1998.
• C.Gnana Desigan, S. Kalaiselvi, L. Anusuya. „Women Investor‟s Perception towards
Investment: An empirical Study‟, Indian Journal of Marketing. 2006. Retrieved from:
http://www. google.com.
• Syed Tabassum Sultana, „An Empirical Study of Indian Individual Investors Behaviour‟,
Global Journal of Finance and Management, 2010, 2(1), pp. 19-33
• Kanti Das, S. „Middle Class Household‟s Investment Behaviour: An Empirical
Analysis‟. Journal of Radix International Educational and Research Consortium, 1(9), 2012.
ANNEXURE
ANNEXURE
Respected sir/madam,
I Prasant Talukdar a student of GAUHATI COMMERCE COLLEGE under
Gauhati University,conducting a survey on the topic entitled “ A STUDY ON
INVESTMENT PLANNING ADOPTED BY INDIVIDUAL WITH SPECIAL
REFERENCE TO GUWAHATI CITY” for the partial fulfilment of our
course curriculum. I would be grateful if you spare a few minutes from your
busy schedule to go through the questionnaire and answer to the question
given. The answer given by you will help me in completing my survey.
I assure you that this survey is purely academic exercise and all your
responses will be kept confidential. Your cooperation is solicited and it will
help the survey tremendously.
Thank you
Prasant Talukdar
M.com 3rd semester
Gauhati Commerce college
QUESTIONNAIRE
Personal Details:
Name of the Respondent:
Qualification:
Under matriculation
HS
Graduation
Post Graduation
Others
Age:
21- 30
30- 45
45- 60
60 above
Gender: Male female others
Annual Income:
Less than 1 lakh
1 lakh – 2 lakh
2 lakh – 3lakh
3 lakh- 4 lakh
4 lakh and above
1. Do you invest your money in various investment avenues?

a. yes
b. no
2. Out of the following, which type of instrument are you aware of?
a. bank deposit
b. insurance
c. mutual funds
d. shares
e. postal deposit
f. PPF
g. Gold
3. From which source you came to know about the various investment?
a. newspaper
b. publication media
c. professional
d. internet
e. friends
4. How would you rate the risk associated in various investment avenues?
a. high
b. moderate
c. low
5. Where have you been investing?
a. bank deposit
b. insurance
c. mutual funds
d. shares
e. postal deposit
f. PPF
g. Gold
6. Are you satisfied with your previous investment?
a. highly satisfied d. dissatisfied
b. satisfied e. Highly dissatisfied
c. neutral
How long would you like to hold on your investment?
a. 1- 3 years
b. 4- 6 years
c. 7- 10 years
d. more than 10 years
7. How do you invest your investment?
a. directly
b. through agents/ brokers
c. others
8. In which sector do you prefer to invest your money?
a. public sector
b. private sector
c. foreign sector
9. What percentage of your monthly income/salary do you invest?
a. less than 20%
b. between 20%- 35%
c. between 35%- 50%
d. more than 50%
10. When you invest in various investment avenues which mode of investment will you
prefer?
a. one time investment
b. systematic investment
11. Which of these factors will you consider responsible of your investment decision?
a. liquidity
b. high return
c. company image
d. price
e. diversification
f. professional management
g. risk
12. Which among the following principles do you consider while selecting a investment?
a. finding out past performance
b. identify your past performance
c. others
13. How would you prefer to invest?
a. monthly
b. quarterly
c. half yearly
d. annually
e. single one time
14. Do you think financial literacy play an important role while making an investment
decision?
a. yes
b. no
c. may be
15. How would you rate the need of financial literacy?
a. very good
b. good
c. average
d. poor
e. very poor
16. Within the last 5 year did you have made any changes in your investment avenue?
a. yes
b. no
17. Please choose the intensity of change in priorities that you undertook over last 5 years
for considering an investment avenues
least low moderate High
Security
Tax benefit
Return
Flexibility
Liquidity
Price
Diversification
18. As a result, what change did you make in the investment preference rank according
(rank 1 is the most preference and rank 5 the least preference )
Rank 1 Rank2 Rank3 Rank4 Rank5
Bank deposit
Insurance
Mutual fund
Share market
Postal
deposit
PPF
Gold
Real Estate
19. Please rate your level of agreement with each of the following factors responsible for
investment
Factors Strongly Somewhat Neither Somewhat Strongly

agree agree agree nor disagree disagree
disagree
Low risk
Liquidit
y
High
return
Safety
Tax
benefit
20. Which type of problem do you face while investing in various investment avenues?
Factors Strongly Somewhat Neither Somewhat Strongly
agree agree agree nor disagree disagree
disagree
Lack of
awareness
Insufficient
services
Lack of
confidence
21. Suggestions on improvement of such problems

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A DISSERTATION ON

“A STUDY OF INVESTORS PERCEPTION REGARDING VARIED INVESTMENT

A DISSERTATION SUBMITTED FOR THE PARTIAL FULFILMENT OF MASTER OF

UNDER THE GUIDANCE OF SUBMITTED BY

DR. SUMEE DASTIDAR PRASANT TALUKDAR

ASSISTANT PROFESSOR M.COM 3RD SEMESTER

DEPARTMENT OF M.COM G.U. ROLL NO. – PC-191-017-0198

GUWAHATI-781021 G.U. REGISTRATION NUMBER:

GAUHATI COMMERCE COLLEGE

R.G. BARUAH ROAD, GUWAHATI -781021

This is to certify that this dissertation entitled “A STUDY OF INVESTORS PERCEPTION

Date: Dr. Sumee Dastidar

Date: Prasant Talukdar

Date: Prasant Talukdar

Research is an important aspect for an individual to enhance their knowledge on

The dissertation “A STUDY OF INVESTORS PERCEPTION REGARDING VARIED

I would like to offer my gratitude to Gauhati University for including dissertation

Date: Prasant Talukdar

TABLE TITLE PAGE

2.2 Difference between Saving and Investment

3.1 Age group of the respondents

3.2 Gender of the respondents

3.3 Education Qualification of the respondents

3.4 Monthly Income of the respondents

3.5 Awareness level among the respondents

3.6 Sources of information of the respondents about

different investment avenues

3.7 Familiar investment avenues of the respondents

3.8 The various investment avenues ranked by the respondents

3.9 Purpose of investment by the respondents

3.10 Investments by the respondents

3.11 Respondents preference from their investment

3.12 Preferred mode of investment by the respondents

3.13 Factors consider before investment by the respondents

3.14 Percentage of Income invested by the respondents

3.15 Frequency of investment of the respondents

3.16 Period of investment preferred by the respondents

3.17 Adequacy level about the present investment schemes

3.18 Special schemes in which respondents invest

3.19 Problem faced by respondents while investing

in the investment avenues

3.20 Types of problem faced by respondents while investing

3.21 Measures adapted by respondents to tackle their

CHART TITLE PAGE

3.1 Age group of the respondents

3.2 Gender of the respondents

3.3 Education Qualification of the respondents

3.4 Monthly Income of the respondents

3.5 Awareness level among the respondents

3.6 Sources of information of the respondents about

different investment avenues

3.7 Familiar investment avenues of the respondents

3.8 The various investment avenues ranked by the

3.9 Purpose of investment by the respondents

3.10 Investments by the respondents

3.11 Respondents preference from their investment

3.12 Preferred mode of investment by the respondents

3.13 Factors consider before investment by the respondents