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Investment behaviour of individuals interest

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1
s
CHAPTER -1 INTRODUCTION
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In this modern era, money plays an important role in one’s life. In order to overcome the
problems in future they have t...
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9. Gold/Sliver
10.Real Estate
11.Mutual Fund
12.Others
1.2 EQUITY
Equity is one of the most risky areas. But, at the sam...
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Investment behaviour of individuals interest

  1. 1. 1 s CHAPTER -1 INTRODUCTION
  2. 2. 2 In this modern era, money plays an important role in one’s life. In order to overcome the problems in future they have to invest their money. Investment of hard earned money is a crucial activity of every human being. Investment is the commitment of funds which have been saved from current consumption with the hope that some benefits will be received in future. Thus, it is a reward for waiting for money. Savings of the people are invested in assets depending on their risk and return demands, Safety of money, Liquidity, the available avenues for investment, various financial institutions, etc... Indian investors have been exposed to a plethora of investment opportunities in the past decade and a half, after the liberalization process which commenced in 1991. Over the years, the increased competition has brought a wind of change, not just in the economic environment within the country, but also a radical change in the choices and preferences of the financial consumers. Since the economic liberalization there is an increase in number of investment avenues available for retail investors, depending upon their risk appetite they can chose between bank deposits, government / private bonds, shares and stocks, exchange traded funds (ETF), mutual funds, insurance, derivatives, gold, silver, currencies, real estate, etc. Most of the retail investors’ primary objective of investment is to earn regular income and expected rate of return differs from individual to individual based on their level of market knowledge and risk taking ability. Every individual is different from others due to various factors which include demographic factors, age, race and sex, education level, social and economic background; same is the situation with the investors. INVESTMENT OPTION AVAILABLE: There are a large number of investment instruments available today. To make our lives easier we would classify or group them. In India, numbers of investment avenues are available for the investors. Some of them are marketable and liquid while others are non marketable and some of them also highly risky while others are almost risk less. The people has to choose Proper Avenue among them, depending upon his specific need, risk preference, and return expected Investment avenues can broadly categories under the following heads 1. Equity 2. FI Bonds 3. Corporate Debenture 4. Company Fixed 5. Bank Fixed 6. PPF 7. Life Insurance 8. Post Office-NSC
  3. 3. 3 9. Gold/Sliver 10.Real Estate 11.Mutual Fund 12.Others 1.2 EQUITY Equity is one of the most risky areas. But, at the same time this is also a place where an investor can earn high rates of returns that will push up the returns of the entire portfolio. There is a need for the investor to separate the speculation from the investment. The former is a process where the money is invested without thinking much about how and why the money is being put there. On the other hand, investment calls for a long term approach that will absorb the funds for a longer period of time. Investment in equities can be made directly by the purchase of shares from the market or it can be done through the mutual fund route, whereby the investor buys the mutual fund units and the fund in turn buys equity shares for its portfolio. There are various benefits as well as risks associated with both these routes and it is up to the individual to make up his mind. 1.3 DEBT: Debt is a route that most people will know and have the necessary experience of. There is a wide range of debt instruments that are present from bank fixed deposits to company fixed deposits and even bonds and debentures whose issues come in the market. Debt is simple as the investor will earn at a fixed percentage of the investment, which will then be returned to the investor at the time of maturity or redemption of the investment. The good part for the investor is that the risk in the investment is very less. But on the other hand, the returns are limited to the interest as a percentage of the total amount. This is a trade off that the investor takes for the purpose of the investment. 1.4 MUTUAL FUNDS This is an emerging area for investment and there is a large variety of schemes in the market to suit the requirements of a large number of people. The features of these schemes will determine the kind of risk that the investment carried but overall the position remains the same which is that for equity oriented funds the risk is greater but at the same time the chances of a return are also quite high. If there is a debt scheme in which the investor is putting the money, then the requirement is such that the returns expectations will have to be lowered because this is a low risk, low return investment. At the same time, here is the expectation that quite a few new types of funds will be launched in the coming months in the Indian markets and this will provide another element or sector wherein the investor can invest their funds. The term's meaning depends very much on the context. In finance, in general, you can think of equity as ownership in any asset after all debts associated with that asset are paid off. For example, a car or house with no outstanding debt is considered the owner's equity because he or she can readily sell the item for cash. Stocks are equity because they represent ownership in a company . 1.5 FI BONDS
  4. 4. 4 The fixed income assets include internally managed investment grade securities and externally managed high yield securities. 1.6 CORPORATE DEBENTURE Corporate debentures are normally backed by the reputation and general creditworthiness of the issuing company. Corporations occasionally issue this type of debt securities in order to raise capital and like bonds; the debentures too, are documented as indentures. It is a type of debt instrument that is not covered by the security of physical assets or collateral. Debentures are a method of raising credit for the company and although the money thus raised is considered a part of the company's capital structure, it is not part of the share capital. 1.7 COMPANY FIXED DEPOSIT Company fixed deposit is the deposit placed by investors with companies for a fixed term carrying a prescribed rate of interest. Used as a measure to build up capital for the company, these deposits offer high rates (as compared to bank FDs) of interest on investments. Company FDs are primarily meant for conservative investors who don't wish to take the risk of vagaries of the stock market. But experts say the due diligence that an investor should undertake is similar to that before buying shares. Getting lured by the high interest rate alone is not advisable. 1.8 FIXED DEPOSITS IN BANK Fixed Deposits with Banks are also referred to as term deposits. Minimum investment period for bank FDs is 30 days. Fixed Deposits in banks are for those investors, who have low risk appetite. Bank FDs is likely to be lower than money market fund returns. Deposits in banks are very safe because of the regulations of RBI and the guarantee provided by the deposit insurance corporation. The interest rate on fixed deposits varies with term of the deposits Bank deposits enjoy exceptionally high liquidity. Loans can raised against bank deposits. 1.9 POST OFFICE SAVINGS: Post Office Monthly Income Scheme is a low risk saving instrument, which can be availed through any Post Office. It provides an interest rate of 8% per annum, which is paid monthly. Minimum amount, which can be invested, is Rs. 1,000/- and additional investment in multiples of Rs. 1,000/-. Maximum amount is Rs. 3,00,000/- (if Single) or Rs. 6,00,000/-(if held jointly) during a year. It has a maturity period of 6 years. A bonus of 10% is paid at the time of maturity. Premature withdrawal is permitted if deposit is more than one year old. A deduction of 5% is levied from the principal amount if withdrawn prematurely. The 10% bonus is also denied. Deposits can be made in multiple of Rs.50. Deposits can be pledged. The interest rate on deposits is slightly higher than banks. The interest is calculated half yearly and paid yearly 1.10 LIFE INSURANCE POLICIES Insurance companies offer many investment schemes to investors. These schemes promote saving and additionally provide insurance cover. L1C is the largest life insurance company in India. Some of its schemes include life policies, • Convertible whole life assurance policy, • Endowment assurance policy, • Jeevan Saathi, • Money back policy • Unit linked plan • Term assurance • Immediate annuity • Deferred annuity • Riders etc. Insurance policies, while
  5. 5. 5 catering to the risk compensation to be faced in the future by investor, also have the advantage of earning a reasonable interest on their investment insurance premiums. 1.11 PUBLIC PROVIDENT FUND (PPF): A long term savings instrument with a maturity of 15 years but no of contributions annually has to be 16 and interest payable at 8% per annum compounded annually. The subscriber to a PPF has to make minimum of deposits of Rs.100 Annually. A PPF account can be opened through a nationalized bank at anytime during the year and is open all through the year for depositing money. Tax benefits can be availed for the amount invested and interest accrued is tax-free. A withdrawal is permissible every year from the seventh financial year of the date of opening of the account and the amount of withdrawal will be limited to 50% of the balance at credit at the end of the 4th year immediately preceding the year in which the amount is withdrawn or at the end of the preceding year whichever is lower the amount of loan if any. The subscriber to the PPF is eligible to take loan from the third year sixth year after opening of account and interest for that loan is 1 % higher than PPF ACC interest rate. 1.12 REAL ESTATE Investment in real estate also made when the expected returns are very attractive. Buying property is an equally strenuous investment decisions. Real estate investment is often linked with the future development plans of the location. At present investment in real assets is booming there are various investment source are available for investment which are directly or indirectly investing real estate. In addition to this, the more affluent investors are likely to be interested in other type of real estate, like commercial property, agricultural land, semi urban land, and resorts 1.13. 1.13 GOLD/SLIVER /OTHERS The bullion offers investment opportunity in the form of gold, silver, art objects (paintings ,antiques), precious stones and other metals (precious objects), specific categories of metals are traded in the metal exchange. The bullion market presents an opportunity for an investor by offering returns and the end value of future. It has been absurd that on several occasions, when stock market failed, the gold market provided a return on investments.
  6. 6. 6 CHAPTER -2 LITERATURE REVIEW
  7. 7. 7 V.R.Palanivelu &K.Chandrakumar (2013) examined the Investment choices of salaried class in Namakkal Taluk, Tamilnadu, India with the help of 100 respondents as a sample size & it reveals that as per Income level of employees, invest in different avenues. Age factor is also important while doing investments. Sanjay Kanti Das (2012) summarized that the bank deposits remain the most popular instrument of investment followed by insurance and small saving scheme to get benefit of safety and security of their life and investment. It was found that there is a need for increasing the financial literacy among the middle class households Sanjay Kanti Das, (2012), “Small Investor’s Behaviour on Stock Selection Decision: A Case of Guwahati Stock Exchange”, Vol. 1 | No. 2 | August 2012 Sunil Gupta (2008) the investment pattern among different groups in Shimla had revealed a clear as well as a complex picture. The complex picture means that the people are not aware about the different investment avenues and they did not respond positively, probably it was difficult for them to understand the different avenues. The study showed that the more investors in the city prefer to deposit their surplus in banks, post offices, fixed deposits, saving accounts and different UTI schemes, etc. The attitude of the investors towards the securities in general was bleak, though service and professional class is going in for investment in shares, debentures and in different mutual fund schemes. As far as the investments are concerned, people put their surplus in banks, past offices and other government agencies. Most of the horticulturists in Shimla city who belong to Apple belt though being rich have a tendency of investing then surpluses in fixed deposits of banks, provident funds, Post Office savings, real estates, etc. for want of safety and suitability of returns. Singh (2006) the study analyzed the investment pattern of people in Bangalore city and Bhubaneswar & analysis of the study was undertaken with the help of survey method. After analysis and interpretation of data it is concluded that in Bangalore investors are more aware about various investment avenues & the risk associated with that. All the age groups give more important to invest in equity & except people those who are above 50 give important to insurance, fixed deposits and tax saving benefits. Kirshnudu.Ch, Reddy B and Reddy G(2005) have found out that the Investors are mostly influenced by family members while taking decisions on investment. Sandhu and Singh (2004) The study was based on structured primary data. The survey was conducted during October and November 2002. The sample of 50 adopters and 50 non- adopters from the universe comprising the city of Amritsar was selected. The study analyzed in case of adopters that transparency, safety, convenience and economy judged as an important feature of net trading followed by market quality and liquidity whereas in case of non-adopters economy and convenience were the important features followed by the other factors like market quality, safety and liquidity
  8. 8. 8 Karthikeyan (2001) has conducted research on Small Investors Perception onPost office Saving Schemes and found that there was significant difference among the four age groups, in the level of awareness for kisan vikas patra (KVP), National Savings Scheme (NSS), and deposit Scheme for Retired Employees (DSRE),and the Overall Score Confirmed that the level of awareness among investors in the old age group was higher than in those of young age group. Bandgar P.K (1999) opines that most of the investors do not know about safety of new issues of company shares, debentures and shares bought stock exchanges Narayana (1976) found that the most important forms of urban financial investment were bank deposits, shares and securities.
  9. 9. 9 CHAPTER-3 RESEARCH METHODOLOGY
  10. 10. 10 It is a micro investigation nature that studies the investment preferences of the individual investors of Gurugram. It is an empirical research design . “INVESMENT BEHAVIOUR OF INDIVIDUAL INVESTORS” OBJECTIVES OF THE STUDY  To understand the pattern of investment at the time of Investment.  To study the factor that influence investment behaviour of the people.  To study the attitude of the respondents towards different investment choices The following Research Design has been used: Type of Research : Descriptive Research Type of Sampling : Convenience Sampling. Data Collection: In the present study the primary data is collected through a structured questionnaire and Interview method. Secondary data have been collected from various published sources such as books, journals, magazines, newspapers and selected case studies. Sample Profile One of the primary aims of the study was to focus on the investment preferences of individual investors. The study being micro investigation examines 50 respondents. Data Analysis and Interpretation The questionnaire was analyzed using tables, Bar graphs ,Pie Charts etc. Limitations of the study  The study is confined only to Gurugram  Sample size is small i.e.50.so errors may crop in while generalising the result
  11. 11. 11  In the process of collection of the data many respondents were not willing to fill the questionnaire due to lack of time. They were reluctant in answering the questionnaire.  The lack of knowledge of customers about the instruments can be major limitation.  The information can be biased due to use of questionnaire.  The Researcher can concentrate only in Indian Investors.
  12. 12. 12 CHAPTER-4 DATA ANALYSIS AND INTERPRETATION
  13. 13. 13 1. PARTICIPATION IN INVESTING ACTIVITIES. TABLE 1 CHART 1 INTERPRETATION- As per our survey, 80% of persons take part in the investing activities and rest of the persons do not . YES 80% NO 20% CHART SHOWING PARTICIPATION OF RESPONDENTS IN INVESTMENT ACTIVITIES PARTICIPATION NO OF RESPONDANTS PERCENTAGE YES 40 80 NO 10 20 TOTAL 50 100
  14. 14. 14 2. PREFERENCE SECTOR FOR INVESTMENT. TABLE 2 CHART 2 INTERPRETATION- According to survey most of respondents like to prefer to invest in private sector and government sector . Least no. of people prefer to invest in foreign sector. 0 2 4 6 8 10 12 14 16 18 20 PRIVATE SECTOR GOVERNMENT SECTOR PUBLIC SECTOR FOREIGN SECTOR 20 18 10 2 CHART SHOWING PREFERENCESECTOR FOR THE INVESTMENT SECTORS NO. OF RESPONDENTS PERCENTAGE PRIVATE SECTOR 20 40 GOVERNMENT SECTOR 18 36 PUBLIC SECTOR 10 20 FOREIGN SECTOR 2 4 TOTAL 50 100
  15. 15. 15 3. FACTORS CONSIDERED BEFORE INVESTING. TABLE 3 CHART 3 INTERPRETATION- According to survey factor considered before investing by major number of people is low risk and after that they consider safety of principal amount as a priority in investing. 0 2 4 6 8 10 12 14 16 18 FACTORS CONSIDERED Safety of principal amount low risk High returns Maturity period 0 15 17 13 5 CHAT SHOWING PREFERENCESECTOR FOR INVESTMENT Alternatives NO OF RESPONDENTS PERCENTAGE Safety of principal amount 15 30 low risk 17 34 High returns 13 26 Maturity period 5 10 TOTAL 50 100
  16. 16. 16 4. INCOME TAX PAYERS TABLE 4 TAX PAYERS NO OF RESPONDENTS PERCENTAGE YES 36 72 NO 14 28 TOTAL 50 100 CHART 4 INTERPRETATION- Mostly investors are tax payers i.e. 72% . 0 5 10 15 20 25 30 35 40 YES NO 36 14 CHART SHOWING INCOME TAX PAYERS
  17. 17. 17 5. PURPOSE OF AN INVESTMENT TABLE 5 CHART 5 INTERPRETATION – Here is a chart showing purpose for every investment, According to survey maximum number of people invest for the pupose of future expenses and after that in Wealth Creation. 0 2 4 6 8 10 12 14 16 18 20 WEALTH CREATION TAX SAVING EARN RETURNS FUTURE EXPENSES 11 10 9 20 CHART SHOWING PURPOSE OF AN INVESTMENT Colum PURPOSE n1 NO OF RESPONDENTS PERCENTAGE Wealth creation 11 22 Tax Savings 10 20 Earn returns 9 18 Future expenses 20 40 Total 50 100
  18. 18. 18 6. BEST INVESTMENT OPTIONS TABLE 6 INVESTMENT OPTION NO OF RESPONDENTS PERCENTAGE Safe and low risk Investment 20 40 Moderate 18 36 High Risk 6 12 Traditional Investments 6 12 TOTAL 50 100 CHART6 INTERPRETATION- As per the survey, best option for investment is Safe and low risk investment which includes savings, Fixed deposits, government securities. And after this investment, there comes Moderate risk investment option which includes Mutual funds, life insurance and debentures. 0 2 4 6 8 10 12 14 16 18 20 Safe and low risk Investment Moderate High Risk Traditional Investments 20 18 6 6 CHART SHOWING BEST INVESTMENT OPTIONS
  19. 19. 19 7. SOURCES FOR INVESTMENT ADVICE. TABLE 7 ADVICE THROUGH NO OF RESPONDENTS PERCENTAGE CERTIFIED FINANCIAL PROFESSIONALS 15 30 ADVISORS 7 14 FAMILY OF FRIENDS 18 36 INTEREST 10 20 TOTAL 50 100 CHART 7 INTERPRETATION- According to survey for taking best Investment Advice, major number of respondents go for family of friends and after that some respondents prefer to take investment advice from Certified Finance Professionals. CERTIFIED FINANCIAL PROFESSIONALS 30% ADVISORS 14% FAMILY OF FRIENDS 36% INTEREST 20% CHART SHOWING SOURCE OF INVESTMENT FOR ADVICE
  20. 20. 20 8. TIME PREFERENCE BY INVESTORS TABLE 8 TIME PERIOD NO OF RESPONDENTS PERCENTAGE SHORT TERM PERIOD 11 22 MEDIUM TERM PERIOD 24 48 LONG TERM PERIOD 15 30 TOTAL 50 100 CHART 8 INTERPRETATION – According to research it can be concluded that major number of people prefer for medium term period i..e 1-5 years. Where as short term period include investments upto 0-1year and Long term period include investments which take more than 5 years. 0 5 10 15 20 25 SHORT TERM PERIOD MEDIUM TERM PERIOD LONG TERM PERIOD 11 24 15 CHART SHOWING TIME PREFERENCEFOR INVESTMENT PURPOSE
  21. 21. 21 9. GROWTH RATE FOR INVESTMENT TABLE 9 WTH RATE GROWTH RATE FOR INVESTMENT GROWTH RATE NO OF RESPONDENTS PERCENTAGE STEADILY 8 16 AT AN AVERAGE RATE 25 50 FAST 17 34 TOTAL 50 100 CHART 9 INTERPRETATION: According to survey most of the respondents want their Growth rate for investment to grow at an average rate .So that it is not too fast and not that steadily. 0 5 10 15 20 25 STEADILY AT AN AVERAGE RATE FAST 8 25 17 CHART SHOWING GROWTH RATE FOR INVESTMENT
  22. 22. 22 10. .INVESTORS INTEREST IN SHARE MARKET TABLE 10 INVESTMENT IN SHARE MARKET NO. OF RESPONDENTS PERCENTAGE YES 23 46 NO 27 54 TOTAL 50 100 CHART 10 INTERPRETATION: As per the survey number of people who are not investing in a share market are high as compare to the one who do and would like to. 21 22 23 24 25 26 27 INVESTMENT IN SHARE MARKET YES NO 23 27 CHART SHOWING INVESTMENT IN SHARE MARKET
  23. 23. 23 11. DECISION OF INVESTORS, WHEN THERE IS A DROP IN STOCK MARKET. TABLE 11 ALTERNATIVES NO OF RESPONDENTS PERCENTAGE WITHDRAW YOUR MONEY 19 38 WAIT TO INREASE 29 58 INVEST MOREIN IT 2 4 TOTAL 50 100 CHART 11 INTERPRETATION: As per the survey situation was given to the respondents thatif there will be fall in stock market after you in invest in it. What will be there reaction in responseto it, most of them prefered to wait to increase and where as some prefered to withdraw. 0 5 10 15 20 25 30 WITHDRAW TO INCREASE WAIT TO INCREASE INVEST MORE IN IT 19 29 2 CHART SHOWING DECISION MAKINGOF RESPONDENTS AFTER A DROP IN STOCK MARKET
  24. 24. 24 12. RISK OF LOSING THE PRINCIPAL AMOUNT. TABLE 12 CHART 12 INTERPRETATION: As per interpretation of survey ,there are very rarely any respondent who is ready to risk of losing principal amount 0 5 10 15 20 25 30 35 40 YES NO 12 38 CHART SHOWING RISK OF LOSING PRINCIPAL AMOUNT DECISION NO OF RESPONDENTS PERCENTAGE YES 12 24 NO 38 76 TOTAL 50 100
  25. 25. 25 13. EXPECTATIONS FROM BANK,WHEN A INVESTOR MAKE A DEPOSIT. TABLE 13 EXPECTATIONS NO OF RESPONDENTS PERCENTAGE TO GET A GOOD INTEREST ON RETURNS 19 38 TAX SAVINGS 10 20 SAFETY OF PRINCIPAL AMOUNT 16 32 LIQUIDITY 5 10 TOTAL 50 100 CHART 13 INTERPRETATION: As per the survey it was questioned if a person or you invest your money in bank what would you expect, major number of people responded it with to get a good interest and after that on safety of principal amount. 0 2 4 6 8 10 12 14 16 18 20 TO GET A GOOD INTEREST ON RETURNS TAX SAVINGS SAFETY OF PRINCIPAL AMOUNT LIQUIDITY 19 10 16 5 CHART SHOWING EXPECTATIONS OF RESPONDENTS FROM BANK
  26. 26. 26 14. REASON OF INVESTMENTING IN MUTUAL FUND TABLE 14 CHART 14 INTERPRETATION; As per the survey, investors mostly chooses that investment which give them higher return and for earning higher return they can go for long term investment. 0 5 10 15 20 25 DIVERSIFICATION AND LOW RISK CHANCES STABILITY HIGHER THE RETURN PERIOD HIGHER THE RETURNS NO LOCK IN 11 8 22 9 CHART SHOWING REASONS FOR INVESTMENT IN MUTUAL FUND REASON FOR INVESTMENT IN MUTUAL FUND NO OF RESPONDENTS PERCENTAGE DIVERSIFICATION AND LOW RISK CHANCES 11 22 STABILITY 8 16 HIGHER THE RETURN PERIOD HIGHER THE RETURNS 22 44 NO LOCK IN 9 18 TOTAL 50 100
  27. 27. 27 15. FUTURE PLAN PREFERENCE TABLE 15 FUTURE PREFERENCE PLAN NO OF RESPONDENTS PERCENTAGE PENSION PLAN 12 24 MEDICAL PLAN 8 16 LIFE INSURANCE 20 40 SPECIFIC PURPOSE 10 20 TOTAL 50 100 CHART 15 INTERPRETATION; According to the survey, mostly investors were interested or had given their preference to life insurance and after that, to the pension plan. 0 5 10 15 20 PENSION PLAN MEDICAL PLAN LIFE INSURANCE SPECIFIC PURPOSE 12 8 20 10 CHART SHOWING FUTURE PLAN PREFERENCEOF RESPONDENTS
  28. 28. 28 16. POINT OF VIEW OF INVESTORS IN REAL ESTATE. TABLE 16 POINT OF VIEW NO OF RESPONDENTS PERCENTAGE IT WOULD INC OVER TIME 16 32 HIGH TANGIBLE ASSET VALUE 7 14 WILL GET BETTER RESULTS 17 34 TAX BENEFITS 10 20 TOTAL 50 100 CHART 16 INTERPRETATION; As per the survey , Investment in real estate by the investor’s view was to get better outcomes or benefits. IT WOULD INC OVER TIME 32% HIGH TANGIBLE ASSET VALUE 14% WILL GET BETTER RESULTS 34% TAX BENEFITS 20% CHART SHOWING POINT OF VIEW TO INVEST IN REAL ESTATE
  29. 29. 29 CHAPTER-5 FINDINGS AND CONCLUSION
  30. 30. 30 FINDINGS  As per our survey,80% of persons take part in the investing activities and the rest of the persons do not.  40% of investors give their preference to the private sector for the investment  34% of investors choose investments which is of low risk and after that 30% choose investments which give them the safety of their principal amount.  Only 72% of investors pay their tax.  40%of the investors prefer to invest for the purpose of future expenses .  40% of investors want to invest in safe and low risk investments  36%of investors take advice from their friends or family.  48% of investors choose to have a medium term period time preference (1year- 5years) for their investment.  50% of the respondents want their growth rate for investment to grow at an average rate.  Only 46% of respondents invests in share market.  58% of investors will wait to increase in the value of their investments at the time of drop in the stock market.  76% of respondents don’t want to take the risk of losing their principal amount.  38% of respondents expect to get a good return/ interest. If they have made a investment in Banks  44% of investors chooses to invest in mutual funds because they have perception of getting higher returns over a higher period of time.  40% of respondents had given their preference to life insurance.  34% of respondents have a point of view of investing in real estate is that ,they will have better outcomes.
  31. 31. 31 CONCLUSION The investors are driven by the economic indicators such as GDP, inflation rate, unemployment rate, GNP, Government policies, etc. The study shows how different factors and instruments have different risks, returns and tax considerations while taking investment decisions and they are of diverse natures. It is very difficult to come to any definite conclusion that how a particular market instrument is doing and how they will perform in the future, but still the study concludes to an extent that a particular instrument or product like equity or government security has performed well in the past and with strong demands will perform well in the future. The study also draws an important conclusion that mostly persons take part in investing activities and out of them, investors generally choose private sector for their investments and they are interested in those investments which have low risk and give the safety to the principal amount. Commonly the purpose behind the investment is to create a backup plan for future expenses and the creation of wealth . Decision for the investment / Advice is mostly taken from the friends or family and then advisors. Generally investors expects that share market will give them good returns, so most of them invests in time preference of medium term and they want that, their investments should grow at an average rate and at the time of drop in the market they will still wait to increase in the value of their investments and the other remaining investors have invested their money in the Banks, Mutual funds, Life insurance and in Real estates. Thus to conclude the study that the Indian investment community have shown much interests in investing different financial products / instruments available in the market due to spiraling growth of Indian GDP , better performance by the companies, liberal rules and regulations by the authorities like SEBI to protect the investors interest and this process will grow much more in the future. Scope for further research The study is conducted by taking a limited number of sample sizes, which is stated earlier. And this study reflects the perceptions of those investors who are residing in Gurugram. There might be a chance that the perceptions of the investors of different nature are varied due to diversity in social life, living pattern, income level etc that needs to be studied further.
  32. 32. 32 CHAPTER-6 BIBLIOGRAPHY
  33. 33. 33 1. Narayana, D. L. (1976), “Income, Saving and Investment of Household Sector in Chittor District”, S.Chand& Co. Ltd., New Delhi, Pp. 1-187 2. Bandgar, P.K. (1999), “A Study of Middle Class Investors’ Preferences for Financial Instruments in Greater Bombay”, Finance India, Vol XIV, No.2, June, 2000, Pp. 574-576 3. Manish Sitlani, Geeta Sharma & Bhoomi Sitlani(2011), IUP Journal of Behavourial Finance – “Investment choice of occupants of financial services industry”, VOL 8,No 1 ,2011, pp. 29-39 4. Nunnally (1978). http://prr.hec.gov.pk/Chapters/323S-4.pdf 5. Sashikala and R Siva Prasad Ravi, “A Study on the Effect of Demographic on the choice of Investments and Ability to take risk”. Review of Business and Technology Research Vol. 3, No. 1, 2010, ISSN 1941-9414 6. C.R. Kothari, Research Methodology, Wishwa Prakaran 7. Websites: www.google.com www.indiamoney.com www.moneymanagementideas.com www.investopedia.com
  34. 34. 34 CHAPTER -7 APPENDIX
  35. 35. 35 We are second year students currently pursuing Bachelor of business administration (BBA) at SHREE GURU GOBIND SINGH TRICENTENARY UNIVERSITY (SGTU). We are conducting a research study on “INVESTMENT BEHAVIOUR OF INDIVIDUALS INTERESTS ’’ -an analysis on investors behaviour on various investments available in India. This research (Project) is taken as partial requirement for the completion of our BBA degree under SGT University . We seek your kind assistance in completing the questionnaire which would take approximately 10 minutes of your valuable time .Your response will be treated as “strictly confidential”. NOTE: There is no right or a wrong answer. To make this study possible and successful, your kind co-operation and honest responses are greatly appreciated. Yours sincerely, SAURABH VERMA & SIMRAN GERA PROJECT GUIDE, MS. RENUKA SHARMA ( Assistant professor) PERSONAL DETAILS (Personal details are kept highly confidential, details will not be revealed to any third party) NAME: AGE GROUP: Below 20 Between 20-30 Between 30-40 Above 40 GENDER: Male Female QUALIFICATION: Under graduate Graduate Post graduate Other OCCUPATION: Salaried Business Homemaker Student Professional Retired Other
  36. 36. 36 ANNUAL INCOME: Below 2 lacs 2 lacs – 4lacs 4 lacs – 6 lacs. Above 6 lacs QUESTIONNAIRE (A STUDY ON INVESTMENT BEHAVIOUR OF INDIVIDUALS INTERESTS) QUES-1-Do you participate in investing activities? (a) Yes (b) No QUES-2- Which sector would you prefer to invest your money? (a)private sector (b) Government sector (c)Public sector (d) Foreign QUES-3-Which factor do you consider before investing? (a)Safety of principal amount (b)Low risk (c) High returns (d)Maturity period QUES-4- Are you an income tax payer ? (a) Yes (b) No QUES-5- What is your purpose behind an investment? (a)Wealth creation (b) Tax saving (c) Earn returns
  37. 37. 37 (d) Future expenses QUES-6-What according to you are the best options for investing your money? (a)Safe and low risk investments (savings, fixed deposits, government securities) (b) Moderate risk investments (mutual funds ,life insurance, debentures) (c) High risk investments (equity share market, commodity market) (d)Traditional investment (real estate, gold and silver, chit funds) QUES-7-What is the source of your investment advice? (a)Certified finance professionals (b)Advisors (c)Family or friends (d)Internet QUES-8- What should be the time period for your investment? (a)Short term (0-1year) (b) Medium term (1-5years) (c)Long term (more than 5 years) QUES-9-At which rate do you want your investment to grow? (a)Steadily (b)At an average rate (c)Fast QUES-10-Do you invest in share market? (a)Yes (b) No
  38. 38. 38 QUES-11- Imagine that stock market drops after you invest in it, what will you do? (a) Withdraw your money (b) Wait to increase (c) Invest more in it QUES-12-Can you take the risk of losing your principal amount? (a) Yes, then in what percentage? (b) No QUES-13-If you invest your money in bank as a deposit, you would expect:- (a) To get a good interest on returns (b) Tax saving (c) Safety of principal amount (d) Liquidity QUES-14-If you invest in mutual funds, what would be the reason? (a) Diversification & low risk chances (b) Stability (c) Higher the investment period, higher the returns (d) No lock in ( withdrawal of money can be done at any time) QUES-15- What type of plan would you prefer in future ? (a) Pension plan (b) Medical plan (c) Life insurance (d) Specific purpose QUES-16- With what point of view you would invest in real sate? (a) It would increase over the time (b) High tangible asset value (c) Will get better returns (d) Tax benefits (depreciation, insurance and property tax)
  39. 39. 39

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