Ankita - A Behavioral Study of Investment Scenario in India

CHAPTER 1
INTRODUCTION
Emerging strong even during the scariest phase of global financial meltdown, India
has become one of the favorite investment destinations for the foreign investors across
the globe. The investment scenario in India is getting better and better with each
passing day due to high confidence level of the investors. Today, India is considered
the 4th biggest economy in the world. Its impressive GDP rate, especially in the field
of purchasing power, has catapulted it to second position among all the developing
nations. According to forecasts, Indian economy will grow to become 60% in size of
the economy of US. It will also witness macro-level stability in economic conditions.
Behind all this, investment can be said to be the key player.
Need for Study: To help the Research N Data to prepare an Industry report on
Investment market in India.
Objectives of the Study:
 To study the preferences and perceptions made by different customer segment.

 To study the need of an investment plan and triggers and barriers.
 To study the competition situation and key players in the market.
 To study the different Investment products and variety of investment
opportunities available.
Problem Statement: A detailed study of Investment Options in India and

customer preferences.
Data sources:
First Phase is the collection of Secondary Data:
This involves the collection of Secondary data using internet and internal sources for
getting knowledge about the investment industry.
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Second Phase is Collection of Primary Data and Analysis:
After collecting the Secondary data the next phase was collection of primary data
using Questionnaires. The questionnaires were filled by around 60 people who were
from Bangalore region. The sample consists of people who are employed or working
or dealing in investment options to know their investment preferences. Based on their
preferences they invest in different plans. The data collected then entered into MS-
excel for analysis of the data.
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CHAPTER 2
INDIAN INVESTMENT INDUSTRY PROFILE
Introduction: Investment is referred to as the concept of deferred consumption,

which might comprise of purchasing an asset, rendering a loan, keeping the saved
funds in a bank account such that it might generate lucrative returns in the future. The
options of investments are huge; all of them having different risk-reward trade off.
This concludes that the investment industry is really broad and that is why
understanding the core concepts of investments and accordingly analyzing them is
essential.
Wealth Creation
Starting the process of Investment of money is the first cornerstone to wealth creation
especially when we know that India is on a fast track growth. In the pre-independence
era (before 1947) India was mainly characterized by people who saves and saves-
heavily. It was the country of savers. But post-independence the growth has picked its
pace and also is the rate of inflation. Prices of essential commodities like food,
housing, gas, electricity, education etc has been increasing at a dramatic pace of more
than 9%. This is one of the biggest disadvantages of a growing economy inflation rate
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seems to fly like a limitless bull. Investment is required to fight inflation and in
addition make your money grow.
Change of shift from saver to an investor
The transition form a "nation that only saves" to a "nation of investors" is evident.
Taking the statistics of last 35years, the number of retail as well as institutional
investors in India has multiplied several folds. Not only Indian investors but
international investors are eying India as an Investment heaven. Only next to China,
India has been rates as the fastest growing economies in recent times. India has
learned to differentiate between saving and investment. If earning money is a need
then savings and investment should be a habit. Savings in isolation is not of much
help because inflation is eating our money. Inflation makes our money less powerful
each day. This is the reason why we need to fight inflation (to protect our money) by a
great tool called investment. India is growing and a person who is investing is actually
contributing to the growth of the nation; in return he/she will get the desired returns.
Important is to identify a suitable "asset class" for oneself and start investing in it.
Like retired people would like to invest in bonds, deposits; middle aged men would
like to invest in mutual funds, real estate but people who are young and dynamic
would like to invest in direct equity like stocks.
Confidence of Investors and GDP growth
Why we have seen this transition and change of shift form savings to investment? The
answer clearly lies in the confidence of Indian Investors in the future growth
prospects of India. This confidence is fueled by a consistent GDP growth of around
8%. Average performance of various asset classes is as listed below:
 Savings account (3% to 3.5%)

 Bonds (6% to 7%)
 Bank or Companies Deposits (6% to 7%)
 Gold (8% to 10%)
 Real Estate (10% to 12%)
 Stocks (12% to 15%)
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 Art (15% to 20%)
Talking about short term investment horizon and GDP growth almost assured at 7%
to 8%, the focus on investors in Indian market shall be more on selecting a suitable
asset class for investment rather then debating of growth and risks of investment.
India will grow and top brains are convinced and assures average retail investors of
this growth scene. People who are already in the boat (investing) might have realized
the power of investment in Indian economy, but for people who have not started yet
for them it‘s not late. In long run India is certain to make big money for its investors
but consistent GDP growth rate proves very encouraging even for short-term
investors.
But India is India and volatility is only the other name for this dynamic country.
Changes in political scenario, inflation, drought, flood, rise of interest rates, market
demands all in totality affect the performance of the market. People should realize that
India is a growing economy and such volatility is expected. The price of stocks may
fall and rise but investors must not loose faith; it is important to keep the focus and
attention of the bigger picture of India's growth.
Investment in India
Investment in Indian market
India, among the European investors, is believed to be a good investment despite
political uncertainty, bureaucratic hassles, shortages of power and infrastructural
deficiencies. India presents a vast potential for overseas investment and is actively
encouraging the entrance of foreign players into the market. No company, of any size,
aspiring to be a global player can, for long ignores this country which is expected to
become one of the top three emerging economies.
Success in India
Success in India will depend on the correct estimation of the country's potential,
underestimation of its complexity or overestimation of its possibilities can lead to
failure. While calculating, due consideration should be given to the factor of the
inherent difficulties and uncertainties of functioning in the Indian system. Entering
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India's marketplace requires a well-designed plan backed by serious thought and
careful research. For those who take the time and look to India as an opportunity for
long-term growth, not short-term profit- the trip will be well worth the effort.
Market potential
India is the fifth largest economy in the world (ranking above France, Italy, the United
Kingdom, and Russia) and has the third largest GDP in the entire continent of Asia. It
is also the second largest among emerging nations. (These indicators are based on
purchasing power parity.) India is also one of the few markets in the world which
offers high prospects for growth and earning potential in practically all areas of
business. Yet, despite the practically unlimited possibilities in India for overseas
businesses, the world's most populous democracy has, until fairly recently, failed to
get the kind of enthusiastic attention generated by other emerging economies such as
China.
Lack of enthusiasm among investors
The reason being, after independence from Britain 50 years ago, India developed a
highly protected, semi-socialist autarkic economy. Structural and bureaucratic
impediments were vigorously fostered, along with a distrust of foreign business. Even
as today the climate in India has seen a sea change, smashing barriers and actively
seeking foreign investment, many companies still see it as a difficult market. India is
rightfully quoted to be an incomparable country and is both frustrating and
challenging at the same time. Foreign investors should be prepared to take India as it
is with all of its difficulties, contradictions and challenges.
Developing a basic understanding or potential of the Indian market, envisaging

and developing a Market Entry Strategy and implementing these strategies when
actually entering the market are three basic steps to make a successful entry into
India.
Developing a basic understanding or potential of the Indian market

The Indian middle class is large and growing; wages are low; many workers are well
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educated and speak English; investors are optimistic and local stocks are up; despite
political turmoil, the country presses on with economic reforms.
But there is still cause for worries-
Infrastructural hassles:
The rapid economic growth of the last few years has put heavy stress on India's
infrastructural facilities. The projections of further expansion in key areas could snap
the already strained lines of transportation unless massive programs of expansion and
modernization are put in place. Problems include power demand shortfall, port traffic
capacity mismatch, poor road conditions (only half of the country's roads are
surfaced), low telephone penetration (1.4% of population).
Indian Bureaucracy:
Although the Indian government is well aware of the need for reform and is pushing
ahead in this area, business still has to deal with an inefficient and sometimes still
slow-moving bureaucracy.
Diverse Market:
The Indian market is widely diverse. The country has 17 official languages, 6 major
religions, and ethnic diversity as wide as all of Europe. Thus, tastes and preferences
differ greatly among sections of consumers.
Therefore, it is advisable to develop a good understanding of the Indian market and

overall economy before taking the plunge. Research firms in India can provide the
information to determine how, when and where to enter the market. There are also
companies which can guide the foreign firm through the entry process from beginning
to end --performing the requisite research, assisting with configuration of the project,
helping develop Indian partners and financing, finding the land or ready premises, and
pushing through the paperwork required.
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Developing up-front takes:
Market Study Is there a need for the products/services/technology? What is the

probable market for the product/service? Where is the market located? Which mix of
products and services will find the most acceptability and be the most likely to
generate sales? What distribution and sales channels are available? What costs will be
involved? Who is the competitor?
Check on Economic Policies:
The general economic direction in India is toward liberalization and globalization. But
the process is slow. Before jumping into the market, it is necessary to discover
whether government policies exist relating to the particular area of business and if
there are political concerns which should be taken into account.
Current Investment Scenario in India
Globalization and Foreign Direct Investment form an integral part of all the developed
as well as developing economies. In fact, the growth of the underdeveloped
economies is also dependant on these key factors. These components equip any nation
with new skills, new items and provide smooth access to markets and technology.
Today, every nation across the globe is looking for foreign and overseas investors.
Whether it's India or China, everyone wants foreign investments. According to recent
trends, India is only second to China in the league of favorite investment destinations.
In the report issued by Department of Industrial Policy and Promotion, the fund
inflow to India reached US$ 27.3 billion in the period 2008-09, considered from the
month of April 2008 to the month of March 2009. Last quarter of 2008-09 alone
witnessed an inflow of approx. US$ 6.2 billion.
In the reports issued by Reserve Bank of India for outward investment from India, a
growth of 29.6% to US$17.4 billion has been seen in the period 2007-08. The figures
do not include individuals and banks. India is considered the 2nd highest foreign
employer in the United Kingdom after the United States.
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When people invest
Saving essentially means storing your money; investing means using your money to
earn more money. You don‘t have to be wealthy to invest. But you have to invest if
you ever want to be wealthy, or even have enough money to live well and retire well.
As with saving, when you‘re considering investing you first need to set your goals.
You need to be clear about what you‘re trying to achieve, and how long you‘ve got.
That will influence the investment decisions you make.
Why should one invest?

One needs to invest to:
 earn return on your idle resources
 generate a specified sum of money for a specific goal in life
 make a provision for an uncertain future
One of the important reasons why one needs to invest wisely is to meet the cost of
Inflation. Inflation is the rate at which the cost of living increases.
The cost of living is simply what it costs to buy the goods and services you need to
live. Inflation causes money to lose value because it will not buy the same amount of
a good or a service in the future as it does now or did in the past. For example, if there
was a 6% inflation rate for the next 20 years, a Rs. 100 purchase today would cost Rs.
321 in 20 years. This is why it is important to consider inflation as a factor in any
long-term investment strategy. Remember to look at an investment's 'real' rate of
return, which is the return after inflation. The aim of investments should be to provide
a return above the inflation rate to ensure that the investment does not decrease in
value. For example, if the annual inflation rate is 6%, then the investment will need to
earn more than 6% to ensure it increases in value.
If the after-tax return on your investment is less than the inflation rate, then your
assets have actually decreased in value; that is, they won't buy as much today as they
did last year.
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When to start Investing?
The sooner one starts investing the better. By investing early you allow your
investments more time to grow, whereby the concept of compounding (as we shall see
later) increases your income, by accumulating the principal and the interest or
dividend earned on it, year after year. The three golden rules for all investors are:
 Invest early
 Invest regularly
 Invest for long term and not short term
What care should one take while investing?

Before making any investment, one must ensure to:
1. Obtain written documents explaining the investment
2. Read and understand such documents
3. Verify the legitimacy of the investment
4. Find out the costs and benefits associated with the investment
5. Assess the risk-return profile of the investment
6. Know the liquidity and safety aspects of the investment
7. Ascertain if it is appropriate for your specific goals
8. Compare these details with other investment opportunities available
9. Examine if it fits in with other investments you are considering or you have already
made
10. Deal only through an authorized intermediary
11. Seek all clarifications about the intermediary and the investment
12. Explore the options available to you if something were to go wrong, and then, if
satisfied, make the investment.
These are called the Twelve Important Steps to Investing.
What is meant by Interest?

When we borrow money, we are expected to pay for using it – this is known as
Interest. Interest is an amount charged to the borrower for the privilege of using the
lender‘s money. Interest is usually calculated as a percentage of the principal balance
(the amount of money borrowed). The percentage rate may be fixed for the life of the
loan, or it may be variable, depending on the terms of the loan.
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What factors determine interest rates?
When we talk of interest rates, there are different types of interest rates - rates that
banks offer to their depositors, rates that they lend to their borrowers, the rate at
which the Government borrows in the Bond/Government Securities market, rates
offered to investors in small savings schemes like NSC, PPF, rates at which
companies issue fixed deposits etc.
The factors which govern these interest rates are mostly economy related and are
commonly referred to as macroeconomic factors. Some of these factors are:
 Demand for money
 Level of Government borrowings
 Supply of money
 Inflation rate
The Reserve Bank of India and the Government policies which determine some of
the variables mentioned above.
What are various Short-term financial options available for
investment?
Broadly speaking, savings bank account, money market/liquid funds and fixed
deposits with banks may be considered as short-term financial investment options:
Savings Bank Account is often the first banking product people use, which offers
low interest (4%-5% p.a.), making them only marginally better than fixed deposits.
Money Market or Liquid Funds are a specialized form of mutual funds that
invest in extremely short-term fixed income instruments and thereby provide easy
liquidity. Unlike most mutual funds, money market funds are primarily oriented
towards protecting your capital and then, aim to maximize returns. Money market
funds usually yield better returns than savings accounts, but lower than bank fixed
deposits.
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Fixed Deposits with Banks are also referred to as term deposits and minimum
investment period for bank FDs is 30 days. Fixed Deposits with banks are for
investors with low risk appetite, and may be considered for 6-12 months investment
period as normally interest on less than 6 months bank FDs is likely to be lower than
money market fund returns.
What are various Long-term financial options available for

investment?
Post Office Savings Schemes, Public Provident Fund, Company Fixed Deposits,
Bonds and Debentures, Mutual Funds etc.
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 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.
Public Provident Fund: A long term savings instrument with a maturity of 15

years and interest payable at 8% per annum compounded 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.
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Company Fixed Deposits: These are short-term (six months) to medium-term
(three to five years) borrowings by companies at a fixed rate of interest which is
payable monthly, quarterly, semi annually or annually. They can also be cumulative
fixed deposits where the entire principal along with the interest is paid at the end of
the loan period. The rate of interest varies between 6-9% per annum for company
FDs. The interest received is after deduction of taxes.
Bonds: It is a fixed income (debt) instrument issued for a period of more than one
year with the purpose of raising capital. The central or state government, corporations
and similar institutions sell bonds. A bond is generally a promise to repay the
principal along with a fixed rate of interest on a specified date, called the Maturity
Date.
Mutual Funds: These are funds operated by an investment company which raises
money from the public and invests in a group of assets (shares, debentures etc.), in
accordance with a stated set of objectives. It is a substitute for those who are unable to
invest directly in equities or debt because of resource, time or knowledge constraints.
Benefits include professional money management, buying in small amounts and
diversification. Mutual fund units are issued and redeemed by the Fund Management
Company based on the fund's net asset value (NAV), which is determined at the end
of each trading session. NAV is calculated as the value of all the shares held by the
fund, minus expenses, divided by the number of units issued. Mutual Funds are
usually long term investment vehicle though there some categories of mutual funds,
such as money market mutual funds which are short term instruments.
Types of Products /Services /Solutions
Investment is the process of risking one‘s savings in the hope of a monetary gain. An
investment involves the act of using a good or its money equivalent to create another
good or fetch the returns of the invested amount in terms on interest or profit share.
The basic purpose of an investment is to hold an asset in order to obtain recurring or
capital gains. You may like to refer to some of the best ways of investing
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money before going through the different types of investments. Take a look at the
various types of investments.
Aggressive Investment: Aggressive investors invest in stock markets and

business ventures. This type of investment can involve the act of investing in a real
estate, renovating it and renting it out. Aggressive investment involves a greater
amount of risk.
Business Management: The value of the business assets is determined after

which they are used to generate revenue. Business assets can be physical, financial or
intangible. Physical assets include property and machinery that is in possession of the
business. Financial assets include the liquid assets of a business and the company
stocks and bonds.
Conservative Investment: Conservative investors invest in cash. They put their
money in investment accounts like savings, mutual funds and certificates of deposit.
While some plans accrue short term profits some are long term deposits. The first
step towards investing in Indian market is to evaluate individual requirements for
cash, competence to undertake involved risks and the amount of returns that the
investor is expecting.
Following are details of the saving plans which are

considered in project:-
1. Kisan vikas patra
a) Maturity Period – 8 years 7 months
b) Money doubles in the after maturity period
c) Mode of payment- Lump sum
d) Minimum amount—Rs 100
e) Maximum amount—No limit
f) No tax and loan facility is available.
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Advantages:-
 Long term investment.
 Return is double after maturity.
 Mostly liked by people from rural and people whose income is less.
Disadvantages:-
 If money is taken back before maturity period than interest provide is 3.5%.
 Investment time is very high, so less preferred.
Product Availability:-
 Through agents and all post offices.
Marketing of the product:-

 Through agents, advertisements, Word of mouth and internet.
2. National Saving Certificate

a) Maturity Period—6 years
b) Interest—8.16% (compounded half yearly)
f) Loan facility—No
g) Tax benefits—yes
Advantages:-
 Tax benefit is there.
 Interest is compounded half yearly so, it increases after 6 months and becomes
12.06% after 6 years.
 Mostly liked by every category of people.
Disadvantages:-
 Money is encased back after maturity period only.
 Investment time is high.
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 Through agents, banks and all post offices.

3. Public Provident Fund

b) Interest—8%
c) Mode of payment- Lump sum/Installments
e) Maximum amount—Rs 70,000
f) Loan benefit –Yes
g) Tax Benefits—Yes
Advantages:-
 Money is paid in installments.
 People mostly invest in it for tax benefit.
 Loan facility is available.
 Deposits in this account are not subject to attachment under an order or a
decree of Court and are also free of Wealth Tax.
Disadvantages:-
 Return interest is less.
 People invest only for tax.
 Maturity period is high.
 Through agents, Nationalize bank and all post offices

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4. Post Office Monthly Income Scheme (POMIS)
b) Interest—8%
e) Maximum amount—Rs 4, 50,000
f) Loan benefit –no
g) Tax Benefits—no
Advantages:-
 Money is paid monthly, acc. to investment and interest.
 Deposit may be made in cash or cherub or demand draft.
 Mostly liked by old age people.
Disadvantages:-
 To get good monthly income, we have to invest high lump sum amount.
 No tax benefits.

5. Post Office Term Deposits (POTD)

a) Maturity Period—1-5 years
b) Interest—6.25-7.5%
f) Loan Facility –no
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Advantages:-
 Maturity period is less.
 Amount is less, so affordable for every category.
Disadvantages:-
 Return interest is less, so liked by people whose income is more.
 No tax and loan facility.

6. Post Office Recurring Deposits (PORD)

b) If Rs10 is invested for 5 years than Rs600 becomes Rs728.90
c) Mode of payment- Lump sum/Installments
f) Loan Facility –Yes
Advantages:-
 Loan facility is available.
 Payments are also through installments.
 Low investment, so liked by daily earning wage people.
Disadvantages:-
 Less interest acc. to maturity period.
 Only popular among low earning people.
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7. Post Office saving Account (POSA)

a) Maturity Period—min 1 year
b) Interest—3.5%
c) Mode of payment- any type of payment
d) Minimum amount—20
e) Maximum amount—1, 00,000
g) Tax Benefits—Yes
Advantages:-
 Tax facility is available so people prefer it.
 Payments are through any mode.
Disadvantages:-
 People do not use it as the investments.
 Through agents sand all post offices

8. Senior Citizen Saving Scheme (SCSS)

a) Maturity Period—5 year (can be extended for 3 years)
b) Interest—9 %( compounded quarterly)
e) Maximum amount—15, 00,000
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Advantages:-
 Money can be taken back before maturity period.
Disadvantages:-
 Less interest acc. to maturity period.

9. Systematic Investment Plan (SIP)

a) Maturity Period—min. 6 months
b) Interest—depends on market
c) Mode of Payment-- Installments
e) Maximum amount—No Limit
g) Tax Benefits—On Tax Saver Plan
Advantages:-
 Payments are through installments.
 Good returns when the market is down.
 Least Risky
Disadvantages:-
 Variable return because of market dependable.
 More transparency.
 Through agents, Distributors and mutual fund offices.

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10. Fixed Deposits (FD)
a) Minimum amount:-
 Nationalize Banks—Rs 5000/10000
 Private Bank—Rs 10000
 Co-operative Bank—Rs 500/1000
b) Loan—Yes (Bank Overdraft)

c) Tax Benefit—No
d) Mode of payment- Lump sum
e) Minimum maturity period —15 days
f) Maximum maturity period —10 years
h) Maximum amount—No limit
Advantages:-
 Loan facility is available (Bank overdraft).
 Maturity period is very less.
 Mostly liked by every category of people, they take it as safe side.
Disadvantages:-
 Return interest is acc. to maturity period.
 To get good return investment must be high.
 Through agents, Nationalize banks and all post offices.

11. Pay Roll Savings Scheme

Under this scheme, any monthly salaried person can voluntarily authorize his
appointing authority or employer to deduct monthly contributions from his salary and
to remit into anyone of the savings schemes like Post Office Recurring Deposit, Post
Office Time Deposit, National Savings Certificate (VIII issue) and Public Provident
Fund Scheme.
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The group leader appointed in each organization for collection purpose is paid 2%
commission for his service who implements the scheme in the respective concern.
Advantages:-
 Collection is through a concern person, so money investment is good.
Disadvantages:-
 People do not refer it because they want to do personally and acc. to their
requirements.
12. RBI Bonds

a) Maturity Period-- 5 years
b) Interest—8% (compounded half yearly)
e) Maximum amount—Rs 2, 00,000
f) Loan benefit –Yes
g) Tax Benefits—yes (on returns only)
Advantages:-
 Loan and tax facility is available.
 Good return due to half yearly compounded interest.
Disadvantages:-
 To get good monthly income, we have to invest high lump sum amount.
13. Mutual Funds

Mutual Fund is a trust that pools the savings of a number of investors who share a
common financial goal. Each scheme of a mutual fund can have different character
and objectives. Mutual funds issue units to the investors, which represent an equitable
right in the assets of the mutual fund.
Dividend income from mutual fund units will be exempt from income tax with effect
from July 1, 1999. Further, investors can get rebate from tax under section 88 of
Income Tax Act, 1961 by investing in Equity Linked Saving Schemes of mutual
funds. Further benefits are also available under section 54EA and 54EB with regard to
relief from long term capital gains tax in certain specified schemes.
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Advantages:-
 Portfolio Diversification.
 Professional management.
 Reduction / Diversification of Risk.
 Liquidity.
 Flexibility & Convenience.
 Reduction in Transaction cost.
 Safety of regulated environment.
 Choice of schemes.
 Transparency
Disadvantages:-
 No control over Cost in the Hands of an Investor.
 No tailor-made Portfolios.
 Difficulty in selecting a Suitable Fund Scheme.
14. Shares
Historically shares have outperformed all the other investment instruments and given
the maximum returns in the long run. In the twenty-five year period of 1980-2005
while the other instruments have barely managed to generate returns at a rate higher
than the inflation rate (7.10%), on an average shares have given returns of about 17%
in a year and that does not even take into account the dividend income from them.
Were we to factor in the dividend income as well, the shares would have given even
higher returns during the same period.
Advantages:-
 Dividend Income.
 Tax Advantages:-
 The dividend income is tax-free.
 Have to pay only a 10% short term capital gains tax on the profits made from
investments.
 No need to pay any long-term capital gains tax on the profits if you sell the
shares after holding them for a period of one year.
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 Easy liquidity.
Disadvantages:-
 Risks ---the only disadvantage in investing in shares
 Company specific risk and market risk.
15. Insurance
Insurance features among the best investment alternative as it offers services to
indemnify your life, assets and money besides providing satisfactory and risk free
profits. Indian Insurance Market offers various investment options with reasonably
priced premium. Some of the popular Insurance policies in India are Home Insurance
policies, Life Insurance policies, Health Insurance policies and Car Insurance policies.
Some top Insurance firm in India under whom you can buy insurance scheme are LIC,
SBI Life, ICICI Prudential, Bajaj Allianz, Birla Sunlife, HDFC Standard Life,
Reliance Life, Max NewYork Life, Metlife, Tata AIG, Kotak Mahindra Life, ING
Life Insurance, etc.
Factors to be consider before investing
Risk and return
Every investment entails a degree of risk. The larger the potential return on any
investment, generally the higher the risk it has. This means the greater the chance of
large fluctuations in its value over time – from significant gains to possibly the loss of
some or all of your initial investment.
If your investment is classed as ‗low risk‘ it means that its returns will be lower, but
the risk is less. However, if the return of the investment is lower than the inflation
rate, the buying power of your money will also decrease. So even ‗low risk‘
investments carry a significant degree of risk.
Timing is also a risk when you have to sell an investment. The market could be in a
downturn, so you won't get the best price. Similarly, you may sell your investment too
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early because you have lost confidence in it and then if the market improves you
could lose out. Everyone‘s tolerance of risk is different, and it will vary depending on
your stage in life, as well as your circumstances.
Diversification
If all this information about risks leads you to the conclusion you don't want to put all
your money into the one investment but instead several, then you've started to think
about diversification.
Diversification is when you divide your investments into different areas to reduce the
overall level of risk. Like the truism: ‗Don‘t put all your eggs in one basket‘,
diversification is a fundamental aspect of investing well.
For example, a balanced investment portfolio (a group of investments) can include a

range of high risk, moderate risk and low risk investments such as property, shares,
managed funds, and other investments.
Timeframes
Imagine that your goal is to travel the world. You want to leave in six months‘ time
and you haven't saved nearly enough money yet, so you decide to invest to try and
make up some of the difference.
You could punt on high return investments, but as they carry a higher risk, if they fell
in value, there may not have enough time to make up the loss. So if you were prudent
you would generally choose a lower risk investment with lower returns, or a mix of
both high and lower risk investments (with more of the latter), to balance out the risk
and returns.
If you planned to travel in three years‘ time, you would have the luxury of being able
to choose a greater proportion of higher risk investments with higher returns, because
you would have more time to make up any temporary falls in their values.
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This simple example shows how risk levels and timeframes (the amount of time you
hold your investments) are interrelated, and you shouldn‘t consider one without the
other. Generally, the more investment time you have, the greater the investment risk
you can afford to carry, and hence, the higher your returns over time.
Do your research
When you start to look for investments, there are three basic areas that you need to
consider:
 The amount of time that you have to let your money grow.
 The level of risk that each individual investment carries.
 How to combine the individual investments in a way that will reduce your
risk, yet give the level of return you want. You shouldn't consider any one
investment in isolation, but rather, how each would work with the others in
your investment portfolio.
A good web site to start your research is FIDO, on the website of the Australian
Securities and Investments Commission (ASIC).
Borrowing to invest
If you don‘t have all the money you need for an investment, you may be able to take
out a loan from a financial institution. Don't forget to shop around for the best loan
option for your needs, and make sure you‘ll be able to manage the repayments. You
should seek professional advice before borrowing, and try to have some money in
reserve in case things go wrong. Because if your investment doesn't go the way you
planned, or you lose your job, you'll still need to meet the loan repayments!
Short Term and Long Term Investments
Short Term Investments - Which Are Best?

If you need to make money quickly, consider short term investments. Short term
investments allow you to invest an amount of money at a high yield interest rate, and
gain access to the return sooner rather than later.
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There are several short term investment options out there, and the key to making
money successfully is finding the best short term investments. And that starts with
learning the answer to the question you probably have: what are short term
investments?
Defining Short Term Investments

A short tern investment fund is a fund that earns you a return on your money in a
short period of time, such as one to ten years. This is different than retirement
investing, and it can be a challenge to find short team, high yield investments. Good
short term investments will have a high interest rate, allowing you to earn substantial
money immediately.
The Need for Short Term Investments

You might need short term investments if you have a pressing need coming up in the
near future. If, for example, you might need to have a down payment for a house or
car in a year or two, you could make use out of short term investment options. Also,
you might use this type of fund in replacement of a traditional savings account,
because you will earn a higher rate of return. Some even choose to use short term
investment funds to supplement their retirement income.
How to Use Short Term Investments
If you are interested in short term investments, talk to your financial advisor. He or
she can tell you what the best short term investment opportunity you can use will be.
Then, invest your money, and leave it alone. Allow it to gain interest for the course of
the investment period. When the fund comes to term, you will have earned interest on
the money you invested.
Decide what amount of your total income you are willing to invest in your fund. Most
people are comfortable with investing around ten percent of their total income. Then,
choose the investment to use. It is best to take the amount and invest it into one
particular investment. Your long term investments are where diversification is
helpful.
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Long Term Investment Strategies that Work!
Planning for your future and retirement relies on planning the right kinds of long term
investments. There are many different types of long term financing investments, and
everyone needs to have some sort of investments for their future.
Planning your retirement and long term investments go hand in hand.
Importance of Long Term Investments

Let's face it. You will not be able to work forever. No matter how healthy you are,
there will come a time when you will not be able to work, due to health problems or
simply aging. What will you do for an income when the time comes to retire? This is
why planning your long term investments carefully is so important.
Maybe you think you will be able to rely on Medicare and social security to take care
of you during your retirement. Well, if that is your plan, it is time to look at the news.
Social security is in trouble. Politicians are trying to repair the problem, but chances
are in another twenty years, or even less, there will be little to nothing left for you in
the social security budget.
Finally, you never know what the future is going to hold. Will you stay healthy? Or,
will you have some serious medical expenses that you will need to have finances for.
Long term investments give you the security to know that in dire circumstances,
money is there.
Long Term Investment Strategies

So, you realize that you need to start looking into long term investments. But where
do you start? How do you know which investments are the best long term
investments? Should you use a broker, or do it on your own. Here are some of the
most tried and true long term investment strategies.
Start by Setting Goals

As with any other type of investing, proper long term investments start by setting
proper goals. How much do you want to have when you retire? What age do you want
to retire? How much should you invest monthly to reach that goal? Are you willing to
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do your own investing, or do you want someone to show you the ropes. Write these
goals down to help guide you as you choose your investments.
Choose the Right Firm

If you decide to seek help looking for your investments, choosing the right firm is
important. Make sure you choose a firm that will follow your investment goals. They
should work with you to find the best investments, not against you. You should feel
like you are in control, even with their help.
Category of Investment
Investment can be done through following ways:-
I. Variable return
II. Fixed return
1. Variable return: - In this the return totally depends on the market like mutual fund
investments. In this SIP(systematic investment plan) can be taken as small saving
plan.SIP helps the customers to b shares of mutual fund by making regular payments-
usually as little as Rs500.
2. Fixed return: - In this the return is being fixed earlier by the government. The
chances of change in the rate of interest are less.
Where to Invest in India?
The financial sector in India, specifically the banking stocks have been doing well
now. The health of the Indian banks seems to be strong and a lot of growth is
expected in the organic frontier. The IT stocks too have been faring well and that is
why it is advisable that the investors invest in stocks of quality companies that have a
good earnings track record. The other choice of stocks has been the consumer goods
stocks, auto stocks, agriculture-related stocks. Some of the favorite scrip‘s that
investors can look forward to are Infosys Technologies, HDFC Bank, ICICI Bank.
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KEY CHALLENGES / BARRIERS
The investing story in India has not been always that smooth. Pitfalls are sure to co-
exist. The main restraint on India's growth now happens to be its infrastructure. On
the other hand, infrastructure is India's biggest opportunity as well. The fiscal deficit
of India also poses a big threat to the investment industry in India. For an emerging
economy like India, it is recommended that an investor always balances the unique
risks against the potential for high long-term growth. Accordingly the decision for
investment should be made.
Of late, the Indian economy is turning out to be extremely conducive in terms of

domestic and foreign investments. India Investments has been the major propelling
force towards India's attainment of self-sustained growth by way of rapid
industrialization. The pioneers of the investment industry has been Foreign Direct
Investment (FDI) and Investments made by NRIs.
Foreign Direct Investments in India has been gearing up momentum every passing
day. So, to view an economy which is entirely open to the global markets, the
investment industry in India should be groomed in a manner that the maximum
returns are achieved. It is advisable that the investment industry's potential should
neither be overestimated nor underestimated. We should know how to deal with the
complexities of the investment industry and grow along with.
The challenges lie in the case of the individual investor account. While there has been
a cent per cent growth in debt funds, growth in equity funds has fallen by 50 per cent.
The sales in equity products – which were as high as Rs 8,000 crore in July 2009 –
have plummeted by 50 per cent and continue to be around Rs 4,000 crore in
November 2009. This was mainly on account of the paradigm shift in the process of
selling these products.
While earlier the agents' commission was paid by the company and was incorporated
into sales price, the regulation stipulating that the customer pay the commission
directly and by a separate cherub to the sales agent has witnessed stiff opposition.
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Sale of equity products have fallen dramatically in the last 4-5 months while
redemptions have gone up as investors have found good returns after a long wait.
The truth of the matter is that the average Indian investor is a greenhorn when it
comes to financial markets. The causes are many: the lack of opportunity, lack of
conceptual understanding and the influence of a fixed-income orientation in the
Indian culture, which even applied to the trader category that operate stockistships
and showrooms for the big brand name companies. Their minimum expectation is that
the family's running expenses ought to be assured by a revenue stream that has little
risk attached to it. In this he is no different from the salaried employee.
In India, one is at best at the mercy of the broker-friend-advisor network. Not that it is
always unhelpful, but the individual investor's own situation and risk preference are
matters that he should be able to articulate and then apply to an investment strategy
that combines the usual four: cash and equivalents, Government-backed bonds, debt,
and equity. The catch is that as few have the capability to do the dynamic juggling
amongst the four on their own, they need the help of a relatively low-cost, low-risk
selection of mutual funds. This requires a level of professional advisory which is not
readily available today. Largely it is a case of the blind being led by those with partial
sight, at best.
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CHAPTER 3
COMPANY PROFILE
About ResearchNData
It provide the latest information on International and Regional markets, key

industries, the top companies, new products, key projects and most recent trends.
Finding relevant information and titles from one single source is always not easy for
end users. Its endeavor is to present a very user friendly interface which can be
leveraged as a one stop source by individual researchers and corporate alike. The
design and layouts of the website has been kept very user friendly and help is
available in case of any difficulty.
There is dearth of sources, which serve the demand for APAC and MENA country
reports. Its endeavor is to bridge that gap for the interest of our clients and to
stimulate growth. In short, we enable your informed decisions for better business
prospects and growth.
Its aim is to help its clients grow with just in time information, accurate insights and
in-depth intelligence. ResearchNData‘s Insights & Analysis products are compiled by
experienced association of researchers, in-house knowledge workers and domain
specialists.
It is striving continuously to build a strong reputation for delivering fast information

for making quick & better business decisions in client‘s competitive ecosystem. It
gathers its own data and leverage information through a far-reaching global network
using robust methodologies. It also leverages intelligence from our partners, who are
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9specialists in their own niche fields. The idea is to provide clients with each delicate
piece of information and a 360 degree industry view.
It is its highly qualified team of analysts, who leverage their industry experience to
deliver analytics, insights, opinion and advice on the latest trends and macro
economic conditions. Widely appreciated in their own fields, its analysts are
frequently quoted in leading industry publications and press.
Research Methodology
ResearchNData have supreme focus on quality of information and validity of data that
it deliver or store in its website. The Team is confident of providing right sets of
information, based on experience from their respective fields.
Experienced and dynamic professionals in Knowledge Work

 RND Team is built carefully with Industry experts from their respective domains who
are experienced with latest Research techniques and have consulting exposure with
clients.
 Analysts and consultants probe for an extensive array of factual inputs including
statistics, surveys, and interviews, to validate research findings and make confident
statements. Data verification is done with variety of analytic techniques. Regular
training and continuous professional developments are
built in the well laid processes to make sure all are
updated.
 There is a huge component of primary research involved

as well. Expert interviews with leading industry
participants and peer reviews are regularly done to debate findings. It makes sure that
research findings are conclusion oriented and actionable, strongly supported by field
data and primary insights. There are independent points of view from our experienced
team as well in the reports.
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Reliable Information from the Right sources
 The research methodology is with proven track record. It delivers consistent, and
actionable data that is uncomplicated to tap, utilize and reference in business planning
and strategy formulations.
 Information is collated through transparent, definite and process laid research

methods. Business decisions are made by clients based on robustly sourced and
citable data; hence it takes supreme care in quality control. The Research process is
managed by experienced teams and there is rigorous control on the quality of findings
at all stages.
 Databases are built robustly and refreshed at regular intervals. Sophisticated

technology and techniques are used to collect proprietary data, and its employees are
trained using best practices to ensure the reliability of modus operandi.
Product Area
 Knowledge Centre
 Company Capsule
 Project Mart
 Data Centre
Knowledge Centre
“Knowledge Centre” is a true Industry gateway. Insightful analysis, risk

evaluations and industry forecasting based on our distinctive research provides
the true picture of a specific market, industry or development. Industry
intellect enables our clients to make informed decisions and be always ready
to take proactive steps. The relevant titles are regularly refreshed and involve
primary research and intelligence from Industry experts. The growth
parameters and forecasts are very carefully architected to act as pathfinders for
client‘s business boost. We have the largest array of 1000+ Industry report
titles without considering granular sub categories among the broader titles.
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The titles set are exhaustive and designed to meet all requirements of Users in
respective domains.
The reports are available as basic overview versions, whereas for detail view
there are advanced reports and Analyst level very advanced reports in most of
the titles.
Information is collated through transparent, definite and process laid research
methods. Analysts and consultants probe for an extensive array of factual
inputs including statistics, surveys, and interviews, to validate research
findings and make confident statements. Data verification is done with variety
of analytic techniques.
There is a huge component of primary research involved as well. Expert

interviews with leading industry participants and peer reviews are regularly
done to debate findings. We make sure that research findings are conclusion
oriented and actionable, strongly supported by field data and primary insights.
There are independent points of view from our experienced team in the
reports.
Company Capsule
“Company Capsule” covers company profiles of present leaders and aspiring

leaders in their respective fields. The information areas include performance
metrics, financial analysis, SWOT, demographics, insights and take aways.In
this process of leveraging information, clients can investigate on competitors
and potential alliance partners. The latest company capsules enable to get a
definitive glance on the entities and help in taking accurate decisions.
RND has the largest number of 10, 000 + Company profiles. The major
newsmakers and potential up comers are covered in the database of titles. This
makes sure that any sort of competition mapping is possible in a
domain/industry and strategic directions can be reached for alliances or other
plans.
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The profiles are available as basic overview versions, whereas for detail view
there are advanced reports and Analyst level very advanced profiles in all
segments.

findings and build a rich information base. Databases are built robustly and
refreshed at regular intervals. Sophisticated technology and techniques are
used to collect proprietary data, and our employees are trained using best
practices to ensure the reliability of methods.

There are independent points of view from our experienced team as well in the
reports.
Project Mart
“Project Mart” covers in-depth and insightful project feasibility, viability and
practicability analysis. Our reports will expose the true picture for the
project/product in question in a particular geography. We include location
analysis, in-depth risk analysis and ROI prospects. Economic, technical, legal,
financial and all connected feasibilities are analyzed in detail.
The material involves evaluation of a proposal designed to determine the

complicatedness in carrying out a designated project. Clients appreciate the in-
depth coverage and view for all angles for decision support. Generally, these
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reports are being widely used for technological developments and project
implementations by our clients.
We have the largest array of 1500+ Project Feasibility report titles without
considering granular sub categories. The titles set are exhaustive and designed
to meet all requirements of Users in respective domains.

findings and make confident statements. Data verification is done with variety
of analytic techniques.

There are independent points of view from our experienced team as well in the
reports.
Data Centre
―Data centre‖ provides interactive data to clients. This is a process of eliciting

exciting knowledge from data repositories. This concept enables clients to
access and use any data they are looking for to meet their information needs.
The interface is very user friendly and offers users to search exactly what they
are looking for and download that piece of information. This acts as a
repository for all data, compiled in one place in a user friendly manner. There
are demonstrations available in our FAQ section to guide you more.
All major Industry categories are covered in the Product and enables users a
quick snapshot for ready usage as per their custom needs.
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Computers don‘t understand abstract concepts at all times. Interactive mining
techniques aim to alleviate problems by involving the user in the mining
process in computers, so that the end user's understanding of abstract semantic
concepts and domain knowledge can guide the detection process, resulting in
accelerated mining with superior results.
Interactive data pulling allows the user and the data mining algorithms to
interact with one another. Regularly, the data is visualized helping the user to
understand the patterns better and also allows the user, and not just the mining
tool's discovery engine, to find out some of the patterns. As the consumer is
mining the data, he gains more knowledge about the data and will be able to
make more appropriate representations and methods.
Different fields of operation

PRODUCT AREAS
Technology (IT / IT’es / Telecom)

ResearchNData aspires to enable its clients operating in the IT/ITeS/Telecom fields,
offering in-depth Market Intelligence on products, solutions, applications, appliances
and services to mitigate the challenges of these hugely dynamic markets.
The key areas of our research are Industry Reports (Knowledge Centre), Company
reports (Company Capsule), Project feasibility reports (Project Mart), Data centre etc.
“Knowledge Centre” covers multiple industry segments with large number of sub
titles in each section. Few major segments are listed below....
 Computing products
 Packaged software
 IT Services
 Enterprise mobility solutions
 LOB/Industry specific solutions
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 Telecom sector
 Mobility
 BPO/KPO/ITeS
 IT Solutions (e.g. security, storage, ERP etc)
 Rural IT
 Printers & Peripherals
 Digital animation and gaming
 Networking equipment & services
 New age technologies & solutions (like 3G, Cloud, UC etc)
 City opportunity reports
 Country overall opportunity reports
 Partner/alliance reports
 IT in consumer segment
 Opportunity and potential in SME sector
“Company Capsule” covers company profiles of present leaders and aspiring leaders
in their respective fields. The information areas include performance metrics,
financial analysis, SWOT, demographics, insights and takeaways.
We are covering all leading IT Vendor's profiles and promising new entrants.
"Project Mart" covers feasibility reports for project areas like-

 Accounting/ Legal Services Outsourcing
 BPO
 Computer peripherals
 Computing products
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 KPO
 Networking equipments
“Data centre” provides interactive data to clients. This is a process of eliciting

exciting knowledge from data repositories.
Sector
Information technology and the hardware and software associated with the IT
industry are an integral part of the global business industry. The IT industry is
knowledge-based. The IT industry helps many other sectors in the growth process of
the economy including the services and manufacturing sectors. The IT industry can
serve as a medium of e-governance, as it assures easy accessibility to information.
The use of information technology in the service sector improves operational
efficiency and adds to transparency.
This industry has become one of the most robust industries in the world. IT has an
increased productivity and therefore is a key driver of global economic growth.
Economies of scale and insatiable demand from both consumers and enterprises
characterize this rapidly growing sector. Both software development and the hardware
involved in the IT industry include everything from computer systems, to the design,
implementation, study and development of IT and management systems. Due to its
easy accessibility and the wide range of IT products available, the demand for IT
services has increased substantially over the years. The sector has emerged as a major
global source of both growth and employment.
Telecommunications industry deals with the activities and services of electronic

systems for transmitting messages through cables, telephone, radio or television. Few
major factors responsible for the growth of telecommunications industry are use of
modern technology and market competition. One of the products of modern
technologies is optical fibers, which are being used as a medium of data transmission
instead of using coaxial or twisted pair cables. Use of communication satellites makes
this industry a booming one. The use of mobile network has a crucial role behind the
growth of an improved telecommunications industry.
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Introduction of advanced technologies make the telecommunications industry a very
competitive one and business growth has been tremendous over the years.
Finance
ResearchNData aspires to enable its clients operating in and gaining from the
financial services space, offering in-depth Market Insights & Intelligence on products,
solutions, laws, regulations and services to mitigate the challenges of these highly
significant and dynamic markets.
 Asset financing
 Asset management
 Banking Services
 Cards (ATM/ Debit/ Credit/ Pre paid)
 Equity trading
 Financial service outsourcing (CMS, Collection, Claim settlement)
 Foreign Exchange
 Insurance products
 Life & pension
 Loan products
 Micro financing
 Project audit
 Regulations in industry
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 Rural banking
 Securities broking
 Tax consultants
 Wealth Management
financial analysis, SWOT, demographics, insights and take aways.
"Project Mart" covers feasibility reports for project areas like

 Banks Co-operative
 Equity trading
 Financial products broking
 Financial service outsourcing (CMS, Collection, Claim settlement)
 Foreign Exchange
 Micro financing
 Retirement & pension products
 Smart Cards
 Tax consultants

Sector
Financial services refer to services provided by the finance industry. The finance
industry encompasses a broad range of organizations that deal with the management
of money. There are some government sponsored enterprises included in the sector as
well. The financial industry or financial services industry includes a wide range of
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companies and institutions involved with money, including businesses providing
money management, lending, investing, insuring and securities issuance and trading
services. The following institutions are a part of the financial industry: Banks, Credit
card issuers, Insurance companies, Investment bankers, Securities traders, Financial
planners & Security exchanges.
Retail
ResearchNData aspires to enable its clients operating in and gaining from the Retail
business space, offering in-depth Market Insights & Intelligence on products,
solutions, laws, regulations and services to mitigate the challenges of these highly
significant and dynamic markets.
 Apparel market
 Clothing
 Cross broader retailing
 Departmental store retailing
 Direct selling
 Durable retailing
 Functional differentiation in retail presentation
 Hyper-marts
 Luxury retailing
 Multi-brands showroom retailing
 Online shopping
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 Perishable products retailing
 Pharmacy
 Retailing
 Single brand outlets
 Shopping malls
 Store design and interiors
 Television shopping
financial analysis, SWOT, demographics, insights and takeaways.
"Project Mart" covers feasibility reports for project areas like

 Apparel brand
 Hyper marts
 Jewellery retail
 Multi brand retail store
 Online shopping channel
 Pharmacy
 Single brand retail store
 Shopping mall
 Tele shopping channel
 Petroleum retailing

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SECTOR
Retailing consists of the sale of goods or merchandise from a very fixed location, such
as a department store, boutique or kiosk, or by mail, in small or individual lots for
direct consumption by the purchaser. Retailing may include subordinated services,
such as delivery; Purchasers may be individuals or businesses. In commerce, a
"retailer" buys goods or products in large quantities from manufacturers or importers,
either directly or through a wholesaler, and then sells smaller quantities to the end-
user. Retailers are at the end of the supply chain. Manufacturing marketers see the
process of retailing as a necessary part of their overall distribution strategy. Shops
may be on residential streets, shopping streets with few or no houses or in a shopping
mall. Online retailing, a type of electronic commerce used for business-to-consumer
(B2C) transactions and mail order, are forms of non-shop retailing.
The pricing technique used by most retailers is cost-plus pricing. This involves adding
a markup amount (or percentage) to the retailer's cost. Another common technique is
suggested retail pricing. This simply involves charging the amount suggested by the
manufacturer and usually printed on the product by the manufacturer.
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CHAPTER 4:
RESEARCH METHODOLOGY
Statement of the problem: The project is ―Behavioral Study of investment

Scenario‖ i.e. investment options available and knowing the customer Preferences and
knowledge about these plans‘.
The purpose of the project is to know about the investment options and how customer
prefers these plans.
Scope of the study:
 To identify the investment options in India.

 Perception of different segments of customers towards various investment
products.
 Usage details, triggers to buy the products, identify any existing need gaps,
etc.
 The process of investment.
 Identify the most popular investment options.
Objective of the study:


 To know whether they have good knowledge of these plans.
 To know which plan is suitable for them to get maximum return.
 Analyzing their way of investments in these plans.
 Analyzing the inclination of SEC (social economic class) towards the
investments.
 To know about the relationship between age and investment of the people.
Methodology used:
Sample plan:
Sampling size: - 60
Sample area: - Bangalore
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Exploratory and descriptive research
The research is primarily both exploratory and descriptive in nature. The sources of
information are both primary and secondary. The secondary data has been taken by
referring to various magazines, newspapers, internal sources and internet to get the
figures required for the research purposes. The objective of the exploratory research is
to gain insights and ideas. The objective of the descriptive research study is typically
concerned with determining the frequency with which something occurs. A well
structured questionnaire was prepared for the primary research and to collect the
responses of the target population.
Tools for data collection:

1. Primary data: Designing the questionnaire to know the customer preference
towards the investment plans. For e.g.
a) Their preference acc. to their requirement and their age.
b) Do they look for fixed or variable returns?
c) Do they invest for?
I. Capital appreciation
II. Safe and quite return
Primary research on customers

 Behavioral mechanism
 Need of investment
 Options considered
 Decision making process
 Factors influencing decision
 Perception towards different options
 Triggers for investment
 Existing need gaps if any
 Awareness on returns plan
 Payment options (Yearly/half yearly/monthly)
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2. Secondary data: knowledge about these plans ,their rate of interest, minimum
and maximum balance , maturity periods and their way of marketing through
Private ,PSU bank, co-operative bank and post office. In this I will take help
of internet, factsheets of company, documents and pamphlets provided.
Limitations of the study:

1. Lack of time- Due to limited time it is not possible to make depth study of
these plans and therefore sample size is also small.
2. Investors are reluctant to give the information.
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CHAPTER 5
ANALYSIS AND INTERPRETATION
1. Age group and no. of respondents.
Age No. of respondents

22-26 31
26-30 17
30-34 2
34-38 2
38-42 3
42-46 2
46-50 3
NO.OF RESPONDENTS AND THEIR AGE

22-26 26-30 30-34 34-38 38-42 42-46 46-50
3%
3% 5%
4% 5%
52%
28%
INTERPRETATION:
 Maximum respondents in this survey are between the age group of 22-26 and
they contribute a huge amount to the investment industry.
 Respondents between the age group of 22-26 are 52%.
 28% respondents are between the age group of 26-30.
 In this survey very less respondents are above the age of 30.
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ANALYSIS:
 According to this survey young respondents are more inclined towards the
investment. Age group between 22-26 and 26-30 invest the maximum and it is
because of the fact that they are more aware of these investment plans.
2. Income wise investment per year.
Income No. of people
Less than 1 lakh 2
1-2lakh 11
2.1-5lakh 37
5.1-10lakh 10
More than 10lakh 0
No. of people
Less than 1 lakh 1-2lakh 2.1-5lakh 5.1-10lakh
17% 3%
18%
62%
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INTERPRETATION:
 Maximum no. of people who invest is from category of Rs.2.1-5 lakh i.e., 62%
of the total respondents have annual income between RS. 2.1-5 lakh.
 17% of respondents belong to income group of Rs.1-2 lakh these invest Rs.
10-20 thousand per year and 18% of respondents are from annual income
between Rs. 5.1-10 lakh these people are less in no. but they invest more
amount per year as compared to others.
ANALYSIS:
 Respondents having higher income invest more amount per year as compare to
those whose annual income is less.
 Higher the income more will be the investment.
3. To whom people consult before investing.
No consulting 4
Financial agent 25
Family 16
Friends 10
Colleagues 5
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Respondents consultation
No consulting
6%
Colleagues
Friends 8%
17%
Financial agent
42%
Family
27%
INTERPRETATION:
 Maximum people consult financial agent before investing in any plan.
According to this survey 42% of respondents consult agent. They do not
consult only a single person but instead they consult their family, friends, and
colleagues in addition to agent.
 Second comes the family. Acc. to this survey 27% of respondents consult their
family. People like to consult their family before investing anywhere.
 While taking investment decision 8% people refer their colleagues also.
 There are some people who don‘t consult before investing and these are those
who had full knowledge or are advisors.
ANALYSIS:
 From the above data we can say that the respondents are more dependent on
financial agents for the investment decision.
 They consult their family, friends and colleagues also but dependence on agent
is more this is may be because they get more expert views from the agents.
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4. Type of investment people prefer.
Fixed 17
Variable 14
Both 29
RETURNS PREFERED
Fixed Variable Both
28%
49%
23%
INTERPRETATION:
 49% People prefer to invest in plans where there are both types of returns i.e.
fixed and variable.
 Besides both 28% people go for fixed returns instead of variable returns and
therefore they invest more in insurance and fixed deposit.
 Whereas 23% people prefer to go for variable returns and these people like to
invest either in share or other plans.
ANALYSIS:
 As most of the respondents are young and they want to invest in plans where
they can get the maximum returns so they invest more in plans where they will
get both returns instead of fixed returns.
 Some respondents don‘t want to take risk and therefore they invest in plans
there they can get fixed returns.
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5. Objective of their investment.
Capital appreciation 21
Source of income 14
Retirement planning 7
Wealth preservation 12
Education funding 3
Others 3
OBJECTIVE OF INVESTMENT
Capital appreciation Source of income Retirement planning
Wealth preservation Education funding Others
5%
5%
35%
20%
12%
23%
INTERPRETATION:
 Main objective of most of the people who invest in these plans is to capital
appreciation. Out of 60 people 21 people invest to fulfill this objective i.e.
35% of total respondents.
 Investment is also like a source of income for 23% of respondents.
 Wealth preservation is also one of the objectives of these investors. And these
are 20%.
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 As this survey include the investors mainly between the age group of 22-30yrs
so retirement planning objective is of very less people. Only 12% invest for
this objective.
 Few people invest for their further education.
ANALYSIS:
 Respondents invest to increase their capital or otherwise they treat invest as
one of the source of their income.
 As more respondents are of age group of 22-30 therefore retirement planning
objective is also less. This income group treat invest as a more a source of
investment.
6. Plan in which they invest.
Investment plans No. of respondent invest
Kisan vikas patra 1
PPF 6
NSC 4
Fixed deposit 11
Post office saving account 3
Recurring deposit scheme 4
Systematic investment plan 13
Mutual funds 13
Shares 11
Insurance 25
Others 3
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INVESTMENT PREFERED
25
20
15
NO OF
RESPONDENTS
10
5
No. of respondent invest
Shares
PPF
Others
NSC
Insurance
Kisan vikas patra
Fixed deposit
Systematic investment plan

Post office saving account
Recurring deposit scheme
Mutual funds
INVESTMENT PLANS
INTERPRETATION:
 Maximum investment comes from the Insurance. Insurance is one of the safe
investments and therefore maximum people like to invest more in insurance.
The risk factor is also very less in insurance. All people whose income range
in between Rs.5.1-10 lakh invest in insurance.25 respondents out of 60 invest
in insurance.
 Then comes the Mutual funds and the SIP. People who are willing to take
moderate risk like to invest in mutual funds. And people who like to get quick
and good returns they invest in SIP.
 Respondents take Fixed deposit as safe investment and therefore who don‘t
want to take risk they invest in FD.
 Respondents who invest in shares are little less because these respondents
don‘t want to take risk and want secure returns.
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 Respondent don‘t invest in Kisan vikas patra because they prefer shot term
returns and it is a long term investment.
 Few respondents like to invest in the NSE, post office saving scheme and
recurring deposit.
 Others include the respondents who invest in ULIP.
ANALYSIS:
 From the above data we can say that the respondents are more inclined
towards investment in insurance and this because of the multiple reasons. First
one is because of more awareness about this plan and second is because of the
secure and safe returns.
 FD and Shares are equally preferred because of two different reasons.FD are
preferred because of safer investment plan and Shares are preferred because of
higher returns.
 Respondents invest in Mutual funds and SIP because of they don‘t want to
take risk and these both are safe investments.
7. From where the respondents get knowledge about these plans.
Newspaper 8
Agents 27
Adverts in T.V and radio 9
Word of mouth 16
KNOWLEDGE ABOUT PLANS

Newspaper Agents Adverts in T.V and radio Word of mouth
13%
27%
15% 45%
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INTERPRETATION:
 45% of total respondents mainly got knowledge about these plans from the
Agents and therefore they consult them only before investing.
 Word of mouth is also a very common source of getting knowledge about
these plans. These are 27% of total respondents. Respondents come to know
about the plans someone investing in their family, colleagues and friends.
 Newspaper and adverts in T.V and radio are also an important source of
communication about these plans to the respondents.
ANALYSIS:
 From the above data it can be analyzed that the respondent‘s main source of
information about these investment plans is from financial agents. Financial
agents are playing a main role in educating the people about the different
investment plans.
8. Amount to invest over next year.
0-5% 15
5-10% 25
10-15% 13
Any other 7
PORTFOLIO TO INVEST OVER NEXT YEAR

0-5% 5-10% 10-15% Any other
12% 25%
22%
41%
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INTERPRETATION:
 41% of respondents like to invest 5-10% in the coming year because of the
good returns in last year they had. These respondents are mainly in the income
bracket of Rs.2.1-5 lakh.
 Any other are the respondents who like to invest more than the 15% next year
because of their confidence level in investment and good returns they had in
last few years. And these are 12%.
 22% of respondents like to invest 10-15%.These are with in the income
bracket of Rs.5.1-10 lakh are more inclined to invest 10-15% over next year.
 Respondents who like to invest 0-5% over the next year are 25% and these lies
between annul income of Rs.1-2 lakh and less than Rs.1 lakh.
ANALYSIS:
 Respondents are satisfied with their investment returns and therefore 41% of
them want to invest 5-10% next year and 22% wants to invest more than of
that.
 Amount to invest in the next year also changes with the change in the income
of the people.
9. Scenario they prefer.
Secure and steady income 6% 19
Fluctuate return avg. 8% with risk 15
Steady income 8% but have to use 24

principal amount in obligation
Total return 12% for five years but 2
income fluctuate
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INVESTMENT SCENARIO
Secure and steady income 6%
Fluctuate return avg. 8% with risk
Steady income 8% but have to use principal amount in obligation
Total return 12% for five years but income fluctuate
3%
32%
40%
25%
INTERPRETATION:
 40% of respondents prefer a scenario where they can get steadier income. And
for which they are ready to take some risk also.
 32% of respondents prefer secure and less steady income. These respondents
invest in insurance and fixed deposit.
 Respondents who are ready to take risk prefer scenario where they will get
fluctuate return but the average returns are more.25% of respondents prefer
this scenario.
 Fluctuate income and steady incomes are equally preferred.
ANALYSIS:
 Respondents prefer either secure returns or steady income. They are
willing to invest more and take risk if the returns they will get will be
more.
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10.Risk taker.
Very willing 8
Somewhat 33
Only willing to take moderate risk 13
Not willing to take risk 6
RISK TAKER
Very willing Somewhat
Only willing to take moderate risk Not willing to take risk
10% 13%
22%
55%
INTERPRETATION:
 55% of respondents are willing to take some what risk. Most of the
respondents like to take risk but not very much willing to take risk. And
these respondents prefer either secure income or steady income.
 There are some respondents who like taking risk and they are very willing
to take risk and these are 13%.
 22% of respondents are willing to take risk but very moderate.
 Very few respondents are not willing to take risk. It is because of less
knowledge about the plans.10% of respondents are not willing to take risk.
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ANALYSIS:
 55% of respondents are willing to take somewhat risk and 22% are willing to
take moderate risk from here we can Analyised that the respondents are
willing to take moderate or somewhat risk and they don‘t want to take more
risk.
11. Level of investment confidence.
Level of investment No. of respondents
Experienced and confident 28
Some experienced and confident 15
Limited experienced 13
Not very confident 4
LEVEL OF CONFIDENCE
Experienced and confident Some experienced and confident
Limited experienced Not very confident
7%
22%
46%
25%
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INTERPRETATION:
 46% of the total respondents are experienced and confident. Experienced and
confident respondents are those who invest Rs.20-40 thousand or more than
Rs.40000 a year. And they invest in fixed deposit, PPF, Insurance and SIP.
 25% respondents are some experienced and confident. And these are those
respondents who invest Rs.10-20 thousand and more than Rs.20000 in a year
and are more interested to invest in mutual funds.
 Limited experienced respondents are 22% and they invest less than Rs.5000 or
in between Rs.10-20 thousand and because of less experience they invest in
Insurance, Fixed deposit, NSC. They want safe returns and not very much
willing to take risk.
 Not very confident are 7% and these respondents are new to investment
industry and because of less experience their investment is also less.
ANALYSIS:
 Maximum respondents are confident about their investment as they had
experienced it before also. This shows that they are aware of the investment
plans and they know how much will be the return they will be getting and
where they should invest.
12.Money invested per year as per plans.
Money Less than 5-10 10.1-20 20.1-40 More than

invested: 5,000 thousand thousand thousand 40,000
Plans:
Kisan vikas 1
patra
PPF 1 5 1 1
NSC 2 1 1
FD 1 2 7 6 3
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Post office 2 1
saving
account
Recurring 2 1 1
deposit
account
SIP 5 5 3
Mutual 1 2 6 8 4
funds
Shares 1 1 5 5 8
Insurances 3 3 9 9 13
Others 1 1 1
14
Less than
5,000
12 5-10
thousand
10 10.1-20
thousand
NO.OF 20.1-40
RESPONDENTS 8 thousand
More than
6 40,000
INVESTMENT PLANS
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INTERPRETATION:
 Out of 50 respondents only one respondent invest in the Kisan vikas patra.This
is because investment in this is for long term and respondents generally prefer
short term returns.
 Few respondents invest in PPF and NSE. In PPF respondents mostly invest
Rs.10-20 thousand of their income per year. In NSC respondents invest less
than Rs.5000 or Rs.5-10 thousand per year.
 FD is also an investment where most of the respondents invest. It is a safe
mode of investment and respondents invest different amount as per their
income.
 In post office deposit and recurring deposit account very few respondents
invest.
 SIP and Mutual fund are two investments which are safe and respondents
invest maximum in these plans. In SIP respondents invest Rs.5-40 thousand
out of their income per year depending upon their income. And in Mutual
funds respondents invest less than Rs.5000 to more than Rs.40000 in a year.
 More respondents investing in SIP and Mutual funds because these people
invest as per the advice of financial agent and these agents suggest them to
invest in these plans.
 Investment in shares is little risky so investment in shares is less as compare to
mutual funds but returns are higher. But the respondents who invest in shares
they invest mostly more than Rs.40000 per year.
 Insurance is the investment plan where there is maximum investment. One
reason for this is that it is the safest mode of investment and other is that in
most of the offices it‘s compulsory to have insurance.
 Insurance industry is growing very fast in our country and because of the fixed
amount the respondents will get after a time period they like to invest in
Insurance.
ANALYSIS:
 It can be concluded that the respondents invest more in the Insurance, Mutual
funds, FD and SIP plans. This is because of the safe returns and more
65 | P a g e
knowledge about these plans. In insurance respondents invest more amount as
compare to other options.
13.Investment vs. Income
Income Less than 1-2 lakh 2.1-5 lakh 5.1-10 Total no. of
1 lakh lakh respondents
Investment
Less than 2 2 0 0 4
5000
5-10 1 5 5 0 11
thousand
10.1-20 0 3 15 0 18
thousand
20.1-40 0 0 12 2 14
thousand
More than 0 0 5 8 13
4oooo
Total no. of 3 10 37 10 60
respondents
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INCOME AND INVESTMENT
16
14
12
10
NO. OF
8
RESPONDENTS
6 Less than 1 lakh
4 1-2 lakh
2
2.1-5 lakh
0
5.1-10 lakh
AMOUNT INVESTED PER YEAR
INTERPRETATION:
 Income and investment are interlinked. Higher the income more will be the
investment and vice-versa.
 Respondents whose income is less than 1 lakh they like to invest less amount
and invest in FD, NSE or Insurance. Where they will can get safe returns.
 Respondents who earn more than 1 lakh and up to 5 lakh they invest 5000-
40000 or even more than 40000 depending upon their needs.
 Income group between 2.1-5 lakh invest the maximum amount. This is
because this category belongs to middle class and they like to save more
money.
 Income group of 5.1-10 lakh like invest more than 40000 a year or 20-40
thousand a year out of their income. As their income is higher they invest
more amount.
ANALYSIS:
 Maximum respondents are between the income group of 2.1-5 lakh and they
invest 10-40 thousand per year.
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 Respondents who are in income group of 5.1-10 lakh they invest usually more
than 40,000 a year.
14.Investment posture vs. inflation.
Inflation 2-4% 3-5% 4-6% Any 0ther Total no of

respondents
investment
Defensive 0 7 2 0 9
Conservative 3 7 1 1 12
Moderate 1 17 9 1 28
Aggressive 1 4 6 0 11
Total no. of 5 35 18 2 60
respondents
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18
16
14
12
10 Defensive
NO. OF
RESPONDENTS Conservative
8
Moderate
6 Aggressive
0
2-4% 3-5% 4-6% Any
other
INFLATION RATE EXPECTATION
INTERPRETATION:
 Investment and inflation rate expectation are also related to each other.
 Maximum respondents feel that the inflation rate will be 3-5% in next year.
 Most of the respondent‘s investment posture is moderate.
 Defensive and conservative respondents expect inflation rate to be 2-4%.
ANALYSIS:
 According to maximum respondents the inflation rate will be 3-5% in next
year and accordingly their investment in next year will depend on that. If
inflation rate will be higher their invest will also be higher.
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15.Age and Investment
Age 22-26 26-30 30-34 34-38 38-42 42-46 46-50
Investment
Plans
Shares 7 3 0 1 0 1 4
Mutual 8 6 0 1 0 1 3
fund
FD 8 1 0 0 0 2 3
PPF 7 1 1 0 1 0 0
ULIP 1 2 0 0 0 0 0
Insurance 16 4 2 0 1 2 5
NSC 3 0 1 0 0 0 0
SIP 7 6 0 0 0 0 0
Recurring 2 1 1 0 0 0 0
deposit
account
Post office 3 0 2 0 0 0 0
deposit
account
Kisan 1 0 0 0 0 0 0
vikas patra
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INTERPRETATION:
 Maximum respondents are between the age group of 22-26.
 The age group of 22-26 invests almost in all investment plans.
 Age group of 46-50 invests more in plans where they can get safe and secure
returns.
 They invest mostly in FD, Insurance and Mutual fund.
 There is only one respondent out of 60 who invest in Kisan vikas patra i.e.
from the age group of 22-26.
ANALYSIS:
 Investment is also related to age. Young respondents are more inclined
towards investment in all the options available in market whereas respondents
above the age group of 40 invest in only few plans and that‘s too mostly in
pals which will give secure returns.
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CHAPTER 6
FINDINDS, RECOMMENDATIONS AND CONCLUSION
FINDINGS:-
 People having annual income between Rs.2-5 lakh are mostly interested in
schemes which are of less maturity period. They want fast return so that they
can reinvest.
 People prefer FD‘s, Insurance more, because they take them as the safe side
of Investment.
 People with income <Rs.1 lakh prefer to invest in post office savings like
recurring deposits and LIC.
 People with income Rs.2-5 lakh prefer to invest in FD‘s, SIP and somewhat
in Shares. People with income >5 lakh prefer to invest in stock, mutual fund,
NSC and PPF.
 Word of mouth and agents play important role in getting knowledge about
small saving plans.
 People mostly consult agents and friends before investing.
 All people are aware of these saving plans i.e. there is good knowledge of
these plans.
 People likely to invest 30-40% of their income.
 People having income up to Rs. 1.5 Lakh are interested in fixed return.
 People having income >Rs.1.5 lakh are interested in either variable return or
in both (fixed and variable) returns.
 For their future reinvestment people are willing to invest acc. to their present
situation. Their present income plays a crucial role for their future investment.
 If their income is same than they want to continue with that only, otherwise
they want their investment to extended.
 People are taking interest in investment in ULIP policies
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RECOMMENDATIONS:-
On the basis of the survey done there are some suggestions from my side which can
help the investment industry and customers. Suggestions are as follows:
FOR COMPANIES:-
 Agents are the main intermediaries in the process of investment so if a
company wants that customers should invest more with their company they
should trained the agents properly.
 Maximum investment is from Rs.2.1-5 lakh and above Rs.5 lakh income
group of people so focused should be made to attract them more so that more
investment can be made in future.
 Customers working in private sector are not much aware of plans like post
office saving account and recurring deposit account. So these people should
be made aware of these small saving plans so that they can invest their.
 More and more young people should be attracted because they are more
excited to invest and they invest almost in all plans and they are ready to take
risk also because they at this time they have very less responsibilities.
 Companies should come out with more attractive investment plans.
 Should focus more on promotion.
FOR CUSTOMERS:-
 Instead of just going as per the recommendation of financial agent the
customer should himself check the investment plans and should invest only in
that plan which will match his/her requirements.
 Customer should provide more education about the investment plans.
 Less customers are investing in the shares because of risk factor in fact
investment in shares can fetch more returns. So customers should gain
knowledge about share market and should invest in stock exchange.
 Customers should be educated regularly regarding new polices and plans of
investment and also regarding other related information.
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CONCLUSION:-
These investment options are not just like an investment only but a high amount can
be made. These are safe and right type of investment. The plans which are described
state that how these investment plans are useful to the developing country like India.
Addition of rupee to rupee makes a huge amount and it is very useful to the country‘s
economy.
After losing their investments in stock markets in the past, small investors prefer risk-
free small savings schemes, which saw
27.33 per cent surge in collection of money. Customer prefers small savings plan
because the return is fixed and there is no risk.
Finally the reports concludes that how customer invest taking every aspect of current
scenario into consideration. In this every type of saving plans has been taken into
account. Through this analysis a customer can understand where to invest the money
looking current scenario. Some of the main points are listed below:
 People are more inclined to invest in the insurance and mutual funds instead
of shares.
 Majority of the people wants higher return in short period of time that is why
they prefer to invest in SIP and mutual funds rather than any other form of
investments.
 People between ages 30-40 think about long term returns as well as higher
return in short period of time that is why they invest in stock market for short
period of time and in insurance for long term return.
 People between ages 22-26 don‘t have much money to invest and they can‘t
take higher risk, so they invest in mutual funds which are of moderate risk.
 People between ages 26-30 wants to be financially stable that is why they
don‘t like to take risk at all. So, they invest in the bank‘s fixed deposit scheme
which has almost no risk and lower return.
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LIMITATIONS:-
Despite of trying my level best, there are still some limitation which I think remains
there to draw fruitful conclusion. There were some practical problems which come
across and could not be properly dealt.
 It is based on the data collected through internet and response got through
questionnaires.
 Confidential information is not revealed by the respondents and it is difficult
to judge the behavior of investors just from analyzing the questionnaires.
 Time consistency.
 Respondents are also of young age and above 40 age people are very less so
the results are not that much accurate.
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BIBLIOGRAPHY:-
1. INTERNET:-
 www.buzzle.com
 www.wikipedia.com
 www.investorwords.com
 www.economywatch.com
 www.ilikeinvesting.com
 www.mapsofindia.com
 www.moneycontrol.com
 www.timsesofindia.com
2. SEARCH ENGINE:-
 www.google.com
3. OTHER SOURCES:
 Magazines
 Investment articles
 Market survey
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APPENDICES:-
QUESTIONNAIRE
Name of the respondent:: Sex: M/F Age:

Company Name: Designation
Address:
Mob No. E-mail PIN
1) Which of the following best describes your profession?
Self employed 1
Salaried – Govt. service 2
Salaried – Private job 3
Others (pls specify) 4
2) In which range does your Annual income lie?
Less than a lakh 1
1 to 2 lakhs 2
2.1 to 5 lakh 3
5.1 to 10 lakh 4
More than 10 lakh 5
3) Have you done any kind of financial investments?
Yes 1
No 2
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4) How much do you invest from your income?
Less than Rs.5 thousand/year 1
Rs.5 to 10 thousand/year 2
Rs.10.1 to 20 thousand/year 3
Rs.20.1 to 40 thousand/year 4
More than Rs.40 thousand/year 5
5) Whom do you consult before investing?
No consulting with anyone 1
Financial agents 2
Family 3
Friends 4
Colleagues 5
6) What type of investment do you do?
Fixed return 1
Variable return 2
Both 3
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7) What is the objective of your investment?
Capital appreciation 1
Source of income 2
Retirement planning 3
Wealth preservation 4
Education funding 5
Others 6
8) Which of the following plans have you ever invested in?
9) Could you please rank the following investments based on your preference,
Rank No. 1 being the most preferred?
Q8 Q9
Kisan Vikas Patra 1
Public Provident Fund (PPF) 2
National Savings Certificate 3
Fixed deposits 4
Post office savings account 5
Post office monthly income scheme 6
Post office term deposit 7
Senior citizen saving scheme 8
Recurring deposit account 9
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RBI bonds 10
Pay roll saving scheme 11
Systematic Investment plan 12
Mutual funds 13
Shares 14
Insurance 15
10) From where did you get knowledge about these plans?
News paper 1
Agents 2
Adverts in TV and radio 3
Word of mouth 4
11) As I read out few phrases, which one best describes your level of investment
confidence?
Experienced and confident 1
Some experience and confidence 2
Limited experience 3
Not very confident 4
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12) What is the total portfolio you expect to invest over the next year?
0-5% 1
5=10% 2
10-15% 3
Any other (pls specify) 4
13) What is the total return your portfolio to achieve on average?
10% 1
15% 2
20% 3
Any other( pls specify) 4
14) What rate of return have you achieved over the last three to five years?
0-15% 1
15-20% 2
Any other(pls specify) 3
Not invested 4
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15) How much return are you expecting from your portfolio of investments in the
coming financial year?
15-25% 1
25-35% 2
35-45% 3
Any other (pls specify) 4
16) What do you believe will be the average rate of inflation over the next five
years?
2-4% 1
3-5% 2
4-6% 3
Any other( pls specify) 4
17) How would you describe your investment posture?
Defensive 1
Conservative 2
Moderate 3
Aggressive 4
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18) What is the poorest level of total return you expect you could live with in any
one year if the markets were not performing well?
7% 1
3% 2
0% 3
-10% 4
-20% 5
19) Which of the following scenarios would you prefer?
A secure and steady income guaranteed at a rate of 6% with not 1

investment risk
A fluctuating income averaging 8% representing conservative 2
investment risk.
A steady income at 8% with an unsteady rate of return on your total 3
portfolio—and the possibility that you might have to use principal
on occasion to meet the income obligation—but total return averages
of 10% over a five-year period.
A total return averaging 12% over a five-year period but income that 4
fluctuates from time to time
83 | P a g e
20) How much of a risk taker are you?
Very willing to take risk in return for an opportunity for greater 1

reward
Somewhat willing to take risk and willing to accept a more modest 2
level of reward
Only willing to take a very moderate level of risk and will accept a 3
lower level of performance
I am not willing to take any risk with my capital and will accept a low 4
level of return
84 | P a g e
INDEX
TABLE NAME PAGE NO.

Age and no. or respondents 49
Income wise investment per year 50
Whom people consult before investing 51
Type of investment people prefer 53
Objective of investment 54
Plan in which they invest 56
From where they get knowledge about 57
these plans
Portfolio to invest over next year 58
Scenario they prefer 60
Risk taker 61
Level of investment confidence 62
Money invested per year as per plan 64
Investment vs. income 66
Investment posture vs. inflation 68
Age and investment 70
85 | P a g e

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Ankita - A Behavioral Study of Investment Scenario in India

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CHAPTER 1

Objectives of the Study:

 To study the preferences and perceptions made by different customer segment.

Problem Statement: A detailed study of Investment Options in India and

First Phase is the collection of Secondary Data:

INDIAN INVESTMENT INDUSTRY PROFILE

Introduction: Investment is referred to as the concept of deferred consumption,

Change of shift from saver to an investor

Confidence of Investors and GDP growth

 Savings account (3% to 3.5%)

Lack of enthusiasm among investors

Developing a basic understanding or potential of the Indian market, envisaging

Developing a basic understanding or potential of the Indian market

But there is still cause for worries-

Therefore, it is advisable to develop a good understanding of the Indian market and

Market Study Is there a need for the products/services/technology? What is the

Check on Economic Policies:

Current Investment Scenario in India

Why should one invest?

What care should one take while investing?

What is meant by Interest?

What are various Long-term financial options available for

Public Provident Fund: A long term savings instrument with a maturity of 15

Types of Products /Services /Solutions

Aggressive Investment: Aggressive investors invest in stock markets and

Business Management: The value of the business assets is determined after

Following are details of the saving plans which are

Marketing of the product:-

2. National Saving Certificate

Marketing of the product:-

3. Public Provident Fund

Marketing of the product:-

Marketing of the product:-

5. Post Office Term Deposits (POTD)

Marketing of the product:-

6. Post Office Recurring Deposits (PORD)

7. Post Office saving Account (POSA)

Marketing of the product:-

8. Senior Citizen Saving Scheme (SCSS)

Marketing of the product:-

9. Systematic Investment Plan (SIP)

Marketing of the product:-

b) Loan—Yes (Bank Overdraft)

Marketing of the product:-

11. Pay Roll Savings Scheme

12. RBI Bonds

13. Mutual Funds

Factors to be consider before investing

Risk and return

For example, a balanced investment portfolio (a group of investments) can include a

Short Term and Long Term Investments

Short Term Investments - Which Are Best?

Defining Short Term Investments

The Need for Short Term Investments

How to Use Short Term Investments

Importance of Long Term Investments

Long Term Investment Strategies

Start by Setting Goals

Choose the Right Firm

Where to Invest in India?

Of late, the Indian economy is turning out to be extremely conducive in terms of

It provide the latest information on International and Regional markets, key

It is striving continuously to build a strong reputation for delivering fast information