Consumer Awareness of Different Investment Plan Repaired)

FINAL PROJECT REPORT ON
Consumer Awareness Of The Different Investment Plan
For
Sundaram Finance
By
submitted
In Partial fulfillment for the award of the degree
MASTER OF BUSINESS ADMINISTRATION

Batch 2009-2011
To
Punjab Technical University,

Jalandhar
New Delhi Institution Of Management Page 1

NEW DELHI INSTITUTION OF
MANAGEMENT
F-13, Phase-1,Okhla, New

Delhi
FINAL PROJECT REPORT ON
Consumer Awareness Of The Different Investment Plan
For
Sundaram Finance
Under The Guidance Of
Prof.R.K.Sharma
And
Mrs.Sayanti Banerjee
Submitted by:- Submitted to:-
Soumitra Khawas Prof.R.K.Sharma

9212760358,D-49
DECLERATION
I hereby declare that this Project Report entitled “CONSUMER AWARENESS OF
DIFFERENT INVESTMENT PLAN” submitted in the partial fulfilment of the
requirement of Master of Business Administration (MBA) of NEW DELHI
INSTITUTION OF MANAGEMENT, NEW DELHI is based on primary & secondary
data found by me in various departments, books, magazines and websites. The
information submitted is true & original to the best of my knowledge.
Date of Project Submission:-
Signature of the student:-
Faculty Comment:-..................................................................................................
...................................................................................................................................
.....................................................................................................................................
.................................................................................................................................
....................................................................................................................................
Signature of the faculty guide: – Signature of research methodology

guide:-
Name: Name:

ACKNOWLEDGEMENT
I take this opportunity to express my gratitude to all of them who in some or the
other way to helped me to accomplish this project.The project study cannot be
completed without their guidance , assistance, inspiration and kind co-operation.
For successfully accomplishment of task apart from hard work the
most important requisite is the right direction and guidance for which I would like to
express my special thanks to Prof.R.K.Sharma who helped me a lot during this
project.
I would also like to extend my thanks to my members and friends
for their support and lastly, I would like to express my gratefulness to the parent’s for
seeing me through it all.
EXECUTIVE SUMMERY
In few years all different investment plan has emerged as a tool for ensuring one’s
financial well being. Investment plan have not only contributed to the India growth
story but have also helped families tap into the success of Indian Industry. As

information and awareness is rising more and more people are enjoying the benefits of
investing in all investment plans. The main reason the number of investors remains
small is that nine in ten people with incomes in India do not know that investment plan
exist. But once people are aware of mutual fund, equity, commodity, life insurance etc
investment opportunities, the number who decide to invest in all investment plan
increases to as many as one in five people. The trick for converting a person with no
knowledge of mutual funds to a new Mutual Fund customer is to understand which of
the potential investors are more likely to buy mutual funds and to use the right
arguments in the sales process that customers will accept as important and relevant to
their decision This Project gave me a great learning experience and at the same time it
gave me enough scope to implement my analytical ability. The analysis and advice
presented in this Project Report is based on market research on the saving and
investment practices of the investors and preferences of the investors for investment in
different investment option. This Report will help to know about the investors
Preferences in Mutual Fund means Are they prefer any particular Asset Management
Company (AMC)Which type of Product they prefer, Which Option (Growth or
Dividend) they prefer or Which Investment Strategy they follow (Systematic
Investment Plan or One time Plan).
TABLE OF CONTENTS
Chapter - 1 INTRODUCTION..
………………………………………..........7
Chapter - 2 COMPANY PROFILE……………………………….....................8

Chapter -3 INTRODUCTION OF DIFFERENT INVESTMENT TERM.......12
Chapter - 4 OBJECTIVES AND SCOPE………………………...................41

Chapter - 5 RESEARCH METHODOLOGY..............................................43
Chapter - 6 DATA ANALYSIS AND INTERPRETATION.......................46
Chapter - 7 FINDINGS AND CONCLUSIONS..........................................60
Chapter - 8 SUGGESTIONS & RECOMMENDATIONS..........................64
Chapter-9 BIBLIOGRAPHY.....................................................................67
Chapter-10 QUESTIONAIRE……………………………………………….68
INTRODUCTION
Sundaram Finance Ltd incorporated in 1954 has grown today into one of the most trusted
financial services groups in India.
Today, the activities of the group span savings products like Deposits and Mutual Funds,
Car and Commercial Vehicle Finance, Insurance, Home Loans, Software Solutions,
Business Process Outsourcing, Tyre Finance, Fleet Cards and Logistics Services.
Subsequently, the equity shares of the company have been delisted from Madras Stock
Exchange Limited (MSE) with effect from January 27, 2004, in accordance with SEBI
(Delisting of Securities) Guidelines, 2003, for voluntary delisting
The strength of the Group lies in the quick completion of transactions, long association with
transporters for generations and the intimate knowledge of the market and its nuances.
The Group has a vast network of over 400 branches to cater to the financing needs of our
customers. The company was started with a paid-up capital of Rs.2.00 Lakhs and later went
public in 1972.The Company's shares were listed in the Madras Stock Exchange in 1972 and
in the National Stock Exchange in January 1998.
Sundaram Finance Group is driven by value and culture, where individual initiatives are
encouraged. For nearly fifty years, SFians have created an asset of immense value - the
Sundaram Finance Group?s reputation for integrity and high standards of business conduct.
This reputation, built over many years, is reflected in each business or personal transaction.
Integrity in all actions and thought is necessary for every employee or prospective employee
of Sundaram Finance Group.
Obsession for Excellence, Speed, Openness to new ideas, Aggressive Goals, Accountability
& Commitment are some of the virtues that we expect from our employees.
The Sundaram Finance Group has been established on a bedrock of honesty, transparency
and a reputation for customer service across more than one hundred locations in India.
COMPANY PROFILE
Website : www.sundaramfinance.in
About the Company
Date of Establishment 1953

Revenue 215.604 ( USD in Millions )
Market Cap 24287.303796 ( Rs. in Millions )
Corporate Address 21,Patullos Road,Chennai-600002, Tamil Nadu
www.sundaramfinance.in
Management Details Chairperson - S Viji
MD - T T Srinivasaraghavan
Directors - A Rangaswami, Arnoon Raman, Aaron
Raman, S Narayanan, S Prasad, S Ravindran, S
Venkatesan, S Viji, Sram, Srinivas Acharya, T R
Seshadri, T T Srinivasaraghavan
Business Operation Finance NBFC
Background Sundaram Finance, a Sundram Group company, was
incorporated in 1954, with the object of financing the
purchase of commercial vehicles and passenger cars.
The company was started with a paid-up capital of
Rs.2.00 Lakhs and later went public in 1972.
The company's shares were listed in the Madras
Stock Exchange in 1972 and in the National Stock
Exchange in January 1998.
Subsequently, the equity shares
Financials Total Income - Rs. 11147.69 Million ( year ending
Mar 2009)
Net Profit - Rs. 1507.314 Million ( year ending
Mar 2009)
Company Secretary S Venkatesan
Bankers
Auditors Brahmayya & Co
VV
COMPANY HISTORY
Sundaram Finance, a Sundram Group company, was incorporated in 1954,
with the object of financing the purchase of commercial vehicles and
passenger cars. The company was started with a paid-up capital of Rs.2.00
Lacks and later went public in 1972.
The company's shares were listed in the Madras Stock Exchange in 1972
and in the National Stock Exchange in January 1998.
Subsequently, the equity shares of the company have been delisted from
Madras Stock Exchange Limited (MSE) with effect from January 27, 2004,
in accordance with SEBI (Delisting of Securities) Guidelines, 2003, for
voluntary delisting.
Sundaram has grown today into one of the most trusted financial services
groups in India. Today, the activities of the group span savings products like
deposits and mutual funds, car and commercial vehicle finance, insurance,
home loans, software solutions, business process outsourcing, tyre finance,
fleet cards and logistics services. The strength of the Group lies in the quick
completion of transactions, long association with transporters for
generations and the intimate knowledge of the market and its nuances.
The Group has a vast network of over 400 branches to cater to the financing
needs of our customers.
Sundaram Finance is one of the oldest and largest providers of finance for
the acquisition of commercial vehicles of all makes. The commercial
vehicle finance provided by it helps the small operators to acquire vehicles
with minimum hassle and documentation. It provides customised financing
options to suit the needs.
Large fleet operators also find it easy to expand their fleet through the
finance provided by the company. It also offers special schemes, supported
by the manufacturers, where the rates are highly competitive. The finance
schemes are easy to understand and without any hidden costs.
The other Group Companies:
• Lakshmi General Finance (since merged with SFL on 1/4/2005)
• Sundaram BNP Paribas Asset Management
• Sundaram BNP Paribas Home Finance
• Royal Sundaram Alliance Insurance
• Sundaram InfoTech Solutions
• Sundaram Business Services
• Sundaram Finance Distribution Limited
• In freight Logistics Solutions Limited
Products / Services Offered
• Deposits
• Car Finance
• Commercial Vehicle Finance
• Fleet Card
• Mutual Fund
• Life Insurance
• General Insurance
• Health Advisory
KEY EXECUTIVES
S.L Name Designation
1 S Viji Chairman
3 T T Srinivasaraghavan Managing Director
2 S Venkatesan Company Secretary
4 S Narayanan Director
5 T R Seshadri Director
6 S Ravindran Director
7 S Prasad Director
8 Arnoon Raman Director
9 Srinivas Acharya Director
COMPETITORS
Sales Curre Market 52-Week

Chang P/E
Company (Rs.Millio nt Cap. High/Lo
e (%) Ratio
n) Price (Rs.Million) w
Rel. Capital 29475.50 733.95 -3.94 53.11 180282.19 987/611
Shri ram
44402.30 587.70 -0.24 15.18 132536.82 614/282
Trans. Fin
Mah. Finan 13790.46 454.60 -3.73 12.85 44050.98 484/210

I Bull Fin 14208.09 135.00 -3.30 15.86 41884.54 220/93
Manappuram
1605.33 73.70 -0.41 20.95 25086.39 840/22
Gen Fin
Sund.Fin 10918.18 437.20 -0.90 10.71 24287.30 457/250
Shriram City
9277.41 468.50 2.26 11.86 23044.17 557/322
Union
BajAutFin 5941.33 474.30 -0.15 19.41 17357.52 509/135
Cholamandala
10985.33 127.10 -1.09 90.65 13969.42 140/49
m Invest
Future Capital 1295.64 186.50 0.95 68.47 11857.29 305/140
Sigrun
0.01 20.00 4.99 0.00 10704.80 84/12
Holdings
SREI Infra
3222.70 79.85 -1.42 8.32 9274.16 94/45
Fin
India 117.3
66.13 40.15 -1.59 8012.59 41/2
Securities 7
Seagull Leaf
24.65 24.80 0.00 0.00 4344.41 0/0
in
PNB Gilts 755568.82 25.20 -0.79 9.27 3402.19 36/21
Shree Nath 840.9

0.67 399.40 3.20 2388.41 411/18
Comm&Fin 9
GE Capital 1738.10 107.30 0.00 0.00 2174.30 108/106
Database
44.65 38.25 0.00 0.00 2039.99 0/0
Finance

Bengal &
161.53 192.90 -1.10 6.94 1675.06 230/50
Assam
First Leasing 1881.40 52.05 -0.57 3.40 1186.25 70/39
TVS Finance 315.14 24.60 0.00 40.69 1018.46 25/24
MuthootCapit
170.42 144.95 -3.69 13.13 942.18 189/46
al

WHAT IS INVESTMENT?
An asset or item that is purchased with the hope that it will generate income or appreciate in
the future.

✔ In an economic sense, an investment is the purchase of goods that are not consumed
today but are used in the future to create wealth.
✔ In finance, an investment is a monetary asset purchased with the idea that the asset
will provide income in the future or appreciate and be sold at a higher price.
Images for investment:-
PUR
POSE OF INVESTING
 Higher current income

 Saving money for major purchases
 Planning for the retirement
 Shelter for taxes
Is Investment and Speculation same?
Basis Investment Speculation

Time frame Long Term Short Term
Nature of Reward Interest or Dividends Speculative gains

Commonly used instruments Stock , Bonds, Mutual Funds Stock , Bonds, Mutual Funds
for investments
Risk involved Less risk High risk involved
Analysis/ Information Trading is done after Trading is usually done on

thorough study (fundamental
Rumors, Hot tips, Inside
analysis), past performances
etc. dopes etc.
TYPES OF INVESTMENT AVENUES
➢ Equities
➢ Bonds
➢ Mutual Funds
➢ Real Estate
➢ Gold ETF’s
➢ Commodities, Futures and Options
➢ Insurance
FACTORS CONSIDERED IN THE CHOICE OF

INVESTMENTS
➢ Risk
➢ Market risk

➢ Interest Rate risk
➢ Default risk
➢ Purchasing power risk
➢ Foreign Exchange Risk
➢ Political Risk
 Marketability and Liquidity
 Tax consideration
What is a Bond?
 A bond is an instrument in writing which gurentees to repay the principal of the plus
the interest to the bondholder.
Advantages of Bonds over Stocks

 Bonds, while a more conservative investment than stocks, can offer certain investors
some very attractive features:
 Safety
 Reliable income
 Potential for capital gains
 Diversification (especially for an otherwise all-equity portfolio)
 Tax advantages
Types of bonds
• Secured and unsecured loans.
• Senior and subordinate bonds.
• Convertible and non-convertible bonds.
• Treasury bonds and corporate bonds

• Junk bonds
Bond yield measures

 One Period Rate of Return
 Current Yield
 Yield to Maturity ( YTM )
 Capital Gain ( Loss )
 Realized Yield
One-Period Rate of Return

Rate of return over a single holding period =
Price gain or loss during the period + Coupon Interest

Purchase period at the begining of holding period
Current Yield
Rate of return earned if the bond is purchased at
Current market price and if coupon interest is paid =
Coupon Interest
Current Market Price
Capital Gain (Loss )

Market Value at the end of t years =
C * PVIFA r, (n –t) + F * PVIF r, (n – t)
Where
C = Coupon
r = Reinvestment Rate
n = Term to maturity
t = Holding Period
F = Redemption Price
Yield to Maturity (YTM)

 Rate of return earned by an investor who holds the bond till maturity .
YTM = KD in the formula

YTM equates the present value of cash flows to the current market price.
Relationship between YTM & Coupon Rate
YTM = Coupon Þ bond is selling at par
(P0 = PN)
YTM > Coupon Þ bond is at a discount
(P0 < PN)
YTM < Coupon Þ bond is at a premium (P0 > PN)
Assumptions underlying YTM

1. All coupon and principal payments are made as per the schedule.
2. The bond is held to maturity.
3. The coupon payments are fully and immediately reinvested at precisely the same
interest rate as the promised YTM.

➢ It is the rate that equates the future value of the purchase price to the total cash flow
realized on the bond.
➢ P * FVIF r, n = Total returns + Purchase price
Risks Faced by a Bond Investor
 Default risk
 Interest rate risk (price risk)
 Reinvestment risk
 Call risk
 Inflation risk
 Foreign exchange risk
 Liquidity risk
Bond investment strategies
 Matching strategy
 Laddered strategy
 Barbell strategy
 Interest rate strategy
How to read bond table

Indian Equity Market- More popularly known as the Indian Stock Market
 Market capitalization of nearly $600 billion
 Third biggest after China($2,347.4 billion) and Hong Kong($1,293.7 billion) in the
Asian region
 Supervised by SEBI (Securities Exchange Board of India)
 The Indian equity market depends on three factors :
1) Funding into equity from all over the world
2) Corporate houses performance
3) Monsoons major ones
 23 stock exchanges – BSE and NSE

New York Stock Exchange The London Stock Exchange
House Ter Beurze in Bruges, Belgium, was one of the first stock exchanges
Advantages of Investing in Shares

 Capital Appreciation
 Bonus shares
 Dividend earnings
 Portfolio
 Long term benefits and return on investment
 Simple method
 Easily cashable
 Liquidity
Disadvantages of Investing in Shares

 No guaranteed return
 Last to get paid
 Volatility in stock prices
 Do not enjoy all the rights
Investment Process
1. Get a Broker
2. Get a Demat Account
○ With banks, financial institutions, broking firms, NBFC, etc

3. Get a PAN
4. Check if you need a UIN
Exchange Traded Funds
 ETF is an investment vehicle traded on a stock exchange, much like stocks.
 ETF are securities that track an index, a commodity or a basket of assets like an Index
fund.
 ETF does not have its NAV calculated everyday like a Mutual Fund.
 It is attractive coz:
 Stock like features
 Diversification of index
 Low cost
 Tax efficiency
 Demat form
Gold-ETF
 Gold backed Exchange Traded Funds (ETFs) are securities designed accurately to
track the gold price.
 It tracks the performance of Gold Bullion
 It provides investors a means of participating in the gold bullion

market without the necessity of taking physical delivery of gold, and
to buy and sell that participation through the trading of a security on
stock exchange.
 While investing in Gold, few points need to be considered:
 Volatility
 Entry time matters

 Other selection factors
Investment Process
 Requirements for trading:
 Trading account with a stock exchange broker

 Demat account as Gold ETF can be traded only in Demat form
 Load Structure:
 Entry Load: Nil
Exit Load: Nil
 Tax treatment:
 Is taxed as per non equity mutual fund taxation rules.
 Need not pay Wealth tax.
Opportunities-why to invest?
 No worry on adulteration
 Gold provides diversification to the portfolio
 Gold is considered as a Global Asset Class
 Gold is used as a Hedge against Inflation
 Gold is considered to be less volatile compared to equities
 Held in Electronic Form
 Store of value
 Extremely Liquid
Comparison of Gold ETF with Physical Gold
Parameters Jeweller Bank Gold ETF

FORM Bar or Coin Bar or Coin Demat form
SECURITY Investor’s Investor’s Fund house
concern concern takes The
responsibility
PRICING Neither standard Differs from Transparent Will
nor transparent bank to bank. be traded at NSE
Not standard
WEALTH TAX Yes Yes No
LONG TERM Only after 3 Only after 3 After 1 year
CAPITAL years years
GAIN TAX
RESALE Conditional and Banks do not At secondary
Uneconomical buy back
Market prices
IMPURITY High Nil Nil
RISK
Advantages
• Safety
 Brings diversification and stability to a portfolio
 Highly liquid and portable
 Tool against inflation
 Less regulatory intervention
Risks Involved
 Are subject to market risks.
 As with any investment in securities, the NAV of the units issued under the Scheme
can go up or down depending on the factors and forces affecting the Bullion Market,
Capital Market and Money Market.

 The Past Performance of the fund house issuing the ETF should not be construed for
the future performance of the fund.
 ETFs are a new concept in India compared to other parts of the world.
 The sponsor of the mutual fund is not responsible or liable for any loss or shortfall
resulting from the operation of the fund beyond the initial contribution made by it of
an amount of Rs 1 Lac towards setting up of the Mutual Fund.
 Investors are not offered any guaranteed or assured returns
Gold ETFs available in India
 Benchmark Mutual Fund - Gold Benchmark Exchange Traded Scheme (NSE Symbol:
GOLDBEES)
 Kodak Mutual Fund - Gold Exchange Traded Fund (NSE Symbol: KOTAKGOLD)
 UTI Mutual Fund - UTI Gold Exchange Traded Fund (NSE Symbol: GOLDSHARE)
 Reliance Mutual Fund - Gold Exchange Traded Fund (NSE Symbol: RELGOLD)
 Quantum Gold Fund - Exchange Traded Fund (ETF) (NSE Symbol: QGOLDHALF)
COMMODITY MARKETS:
• Commodities are any goods that are common and unbranded.
• Gold, Silver, Rubber, Pepper, Jute, Wheat, Sugar and cotton are a few popular
commodities.
• Commodity market represents a formal system for the interplay of demand for and
supply of commodities.
• These markets are classified into spot market and future market.
• Due to erratic weather changes and uncertain economic environment a commodity
shortage (or oversupply) in a particular season lead to increase (decrease) in the price
of the commodity.
• Farmers and merchant could not predict what the prices would be on a given day or
season.
• It was in this context, the farmers and food grains merchants in Chicago started
negotiating for future supplies of grains in exchange for cash at a mutually agreeable
price.
• Thus the farmer could lock in his price in advance thereby securing his income.
• This effectively started the system of commodity market forward contract which
subsequently led to the development of future markets.
Sport Market & Future Market
Spot Market :
Commodities for immediate delivery are traded through the spot market.
➢ The players in the spot market are actual producers and the traders of the
commodity
Futures Market : facilitate contracts for future delivery of the underlying commodity
either through a physical delivery or a cash settlement ( net profit / net loss from the
transaction)
➢ The major players in the future markets are hedgers, speculators, arbitrageurs
and investors.
Forms of Commodity Derivative Products – Futures and Options.
➢ While a commodity future was reintroduced in India in 2003, commodity
options are yet to take off in the Indian markets.
Role of Commodity Futures Market:
 It serves as a mechanism for price discovery either for the current price or to
determent expected future prices.
 Price quoted for a commodity on the futures market is thought to be the best measure
of the actual price either current or future.
 Commodity futures also help to hedge price risk and provide opportunities for
speculators.
 Farmers can benefit from its price discovery mechanism to decide which crops to
grow.
 It also enables businesses to hedge commodity and currency risk and help against
earnings volatility.
Concepts of Hedging:
 In today’s dynamic environment stakeholders are exposed to price volatility
particularly if it involves a future transaction. Hedging plays an important role to
mitigate the risks of both parties in the transaction.

 The process involves hedgers taking opposite positions in two different markets.
Hedging Process:
Examples:
 A copper wire manufacturer has 100 tons of copper in his inventory and there may be
a threat of inventory revaluation due to decrease in copper prices.
➢ In such a scenario he is better off going short (Sell) on copper futures contracts
to protect this against any possible decline in prices. This method is called
Short Hedge
➢ If a copper wire manufacturer has to sell copper wires to a telecom company at
a predetermined price and if the delivery needs to make after four months he
can take a long (Buy) position in the futures market to hedge against risk of
increase in copper prices.
➢ This method is called Long Hedge.
Indian Commodity Exchanges
 There were 23 regional commodity future exchanges active in the

country prior to 2003 when the Govt. opens the field for nation wise
electronic exchanges.
 The growth of futures trading after that was stupendous and the
total turnover crossed Rs.50 lacks cores in 2008.
 The three national commodity exchanges
➢ Of this, Rs.35, 05,137 crore was contributed solely by MCX and

NCDEX.
➢ The increasing awareness and popularity of commodity futures in India and the
slowdown in equity markets have contributed spectacularly to the turnover in the
market. The turnover of the MCX and NCDEX reached Rs.63, 62,603 crore for the
period January 2008 until March 2009.
Major Exchanges worldwide –
Exchanges Abbreviation Location Products

Chicago Board of CBOT Chicago, US Agricultural
Trade
Chicago Mercantile CME Chicago, US Agricultural
Exchange
New York Metal NYMEX New York, US Energy, precious
Exchange
metals, industrial
metals
Multi Commodity MCX India Energy, metals,
Exchange
precious metals,
agricultural
National Multi- NMCE India Metals,
Commodity
agricultural
Exchange of India
National NCDEX India Metals,
Commodity and
agricultural
Derivatives
Exchange
Tokyo Commodity TOCOM Tokyo, Japan Energy, precious
Exchange
metals, industrial
metals, agricultural
London Metal LME London, UK Industrial metals,
Exchange
plastics
Recent Developments
 The economic survey for 2008-2009 has recommended certain reforms in the
commodity markets
1. Bring commodity future regulations under SEBI
• Since commodity futures are part of the financial market bringing all financial
market regulations under SEBI is better.
• At present commodity futures are regulated by FMC

• 2. Lift ban on futures trading in rice, tur, urad
➢ Futures trading of rice, tar, urad were banned in early 2007 as trading in
these commodities was perceived to be causing pressure on inflation.
➢ Lifting of ban on these commodities will restore price discovery and
price risk management.
➢ A future in wheat was also banned but the curve was lifted in May this
year.
➢ Sugar has been put on the suspended list till December this year.
➢ FMC had recommended to the Govt. to lift the ban on all commodities as
there was no direct evidence to suggest that futures trading caused price
spiral.
2. Recent Developments contd….
➢ Involve APMCs or State Mandies to expand the scope of electronic
trading
1. Two leading future exchanges in India – MCX and NCDEX that
has already launched electronic exchanges.
2. There are over 7500 APMCs where trading take place in the
physical form.
3. 4. Removal of the Commodity Transaction Tax (CTT)
4. At present the tax is not enforced.
What is “Insurance”?
 Insurance is a contract whereby, in return for the payment of premium by the insured,
the insurers pay the financial losses suffered by the insured as a result of the
occurrence of unforeseen events.
 Commercial mechanism for transferring risk and spreading loss.

Why do we need insurance?

Types of Insurance
 Engineering
 Property & Casualty
 Accident & Health
 Liability
 Specialized
 Individual & Group
Mechanism….
 Economic Concept of Insurance:
1. Insurer offers policy to cover specified risks
2. Insurer collects policy premiums from customers
3. Insurer invests premiums
4. Insurer pays money to insured customers in the event of losses covered by
policy.

Micro Insurance market in India
 Current Insurance landscape
 Penetration is abysmally low at less than 3% of insurable population* despite
 The presence of an insurance market for a long period and with 16 Life
Insurance and 15 General Insurance active today in the market
 Existence of products to cover various risks
 Globally ranked at 54th position in terms of market penetration and 19th in
premium collection

 This anomaly persists due to the legacy of life insurance being positioned
as a savings and tax-minimization tool rather than as a risk protection
tool
 Innovations are needed to overcome barriers for penetration, like:
 Innovations to develop low cost distribution models using a combination of
process simplifications and application of Info Tech solutions.
 Product Simplification to enable simplicity in both underwriting and claims
administration
 Improving the awareness on the function of insurance products
Real Estate
 Real estate is a legal term that encompasses land along with improvements to the
land, such as buildings, fences, wells and other site improvements that are fixed in
location – immovable
According to The Economist, “developed economies’” assets at the end of
2010 were the following:
 Residential property: $108 trillion;
 Commercial property: $84 trillion;
 Equities: $40 trillion;
 Government bonds: $45 trillion;
 Corporate bonds: $31 trillion;
 Total: $268 trillion.
That makes real estate assets 60% and financial assets 40% of total stocks,
bonds, and real estate assets. Assets not counted here are bank deposits,
insurance “reserve” assets, natural resources, and human assets. It is not clear if
all debt and equity investments are counted in the categories equities and
bonds.
BUSINESS SECTOR:

Some kinds of real estate businesses include:
 Appraisal: Professional valuation services
 Brokerages: A fee charged by the mediator who facilitates a real estate transaction
between the two parties.
 Development: Improving land for use by adding or replacing buildings
 Net lease: Sharing leased property amongst tenants
 Property management: Managing a property for its owner(s)
 Real estate marketing: Managing the sales side of the property business
 Real estate investing: Managing the investment of real estate
 Relocation services: Relocating people or business to a different country
 Corporate Real Estate: Managing the real estate held by a corporation to support its
core business
RISKS IN REAL ESTATE:
Liquidity Risk: It is the risk that a given security or asset cannot be traded
Quickly enough in the market to prevent a loss (or make the required profit)
Types of Liquidity Risk:
Asset liquidity - An asset cannot be sold due to lack of liquidity in the
Market - essentially a sub-set of market risk. This can
be accounted for by:
Widening bid/offer spread
Making explicit liquidity reserves
Lengthening holding period for VAR calculations
Funding liquidity - Risk that liability:
Cannot be met when they fall due
Can only be met at an uneconomic price
Can be name-specific or systemic

MARKET RISK

Market risk is the risk that the value of a portfolio, either an investment portfolio or a
trading portfolio, will decrease due to the change in value of the market risk factors.
The four standard market risk factors are stock prices, interest rates, foreign exchange
rates, and commodity prices. The associated market risks are:
 Equity risk: The risk that stock prices and/or the implied volatility will change.
 Interest rate risk: the risk that interest rates and/or the implied volatility will change.
 Currency risk: The risk that foreign exchange rates and/or the implied volatility will
change.
 Commodity risk: The risk that commodity prices (e.g. corn, copper, crude oil) and/or
implied volatility will change.
VOLATILITY AND SETTLEMENT RISK:-
 VOLATILITY RISK: In financial markets it is the likelihood of fluctuations in the
exchange rate of currencies. Therefore, it is a probability measure of the threat that an
exchange rate movement poses to an investor’s portfolio in a foreign currency. The
volatility of the exchange rate is measured as standard deviation over a dataset of
exchange rate movements. A far more sophisticated extension of this model is the
Value at Risk method, which helps to determine the actual risk exposure to a portfolio
of several currencies.
 SETTLEMENT RISK: It is the risk that counterparty does not deliver a security or
its value in cash as per agreement when the security was traded after the other
counterparty or counterparties have already delivered security or cash value as per the
trade agreement.
SOVEREIGN RISK
Sovereign risk is the risk of a government becoming unwilling or unable to meet its
loan obligations, or reneging on loans it guarantees. The existence of sovereign risk
means that creditors should take a two-stage decision process when deciding to lend
to a firm based in a foreign country. Firstly one should consider the sovereign risk
quality of the country and then consider the firm’s credit quality.
Five macroeconomic variables that affect the probability of sovereign debt

rescheduling are:
 Debt service ratio

 Import ratio
 Investment ratio
 Variance of export revenue
 Domestic money supply growth
OPPORTUNITIES:
Three factors have contributed much to global real estate opportunities :
 Rapid Economic Growth
 Changing Demographics
 Phenomenon of off-shoring
INVESTMENT PROCESS:
 First, the Advisory Board determines the broader framework of the real estate
investment strategy and oversees the Investment Committee and Fund Management
team with annual reviews of portfolio performance and approval of large transactions
that are over a preset amount or percent of total portfolio.
 Investment Committee oversees and approves Portfolio Setup framework, as well as
Asset and Portfolio Management operations. Within this context the Investment
Committee reviews semi-annually asset and portfolio performances, current and
projected, for the whole portfolio and by category, such as property type, location,
tenant industry etc.; reviews portfolio optimization recommendations and makes
decisions regarding changes in portfolio mix in terms of property types and locations
in order to maximize portfolio return prospects and minimize risk; sets and reviews
risk mitigation processes both at the portfolio and at the asset level. Ideally, portfolio
optimization recommendations should be based on the results of advanced portfolio
analysis using reliable return and risk projections by property type and location
(derived through advanced econometric and forecasting techniques) and modeling
frameworks that draw from the modern portfolio theory
 The Implementation Committee executes the portfolio setup and structure, as
determined by the Advisory Board and the Investment Committee. The acquisition
department executes the portfolio build up process by screening properties available
in the market to identify those that fit the Fund’s investment strategy, performing
preliminary screening to select assets that will go through more detailed market
analysis and feasibility study, negotiating transaction terms and financial structuring,

preparing project documentation and analysis package to be presented to Investment
Committee for final approval.
 Return and risk analysis by asset should take into account each asset's cash flow
prospects, given current leases, stipulated rental rates, annual rent increases,
expiration dates, probabilities of renewing, probabilities and time duration for finding
new tenants for non-renewed leases, and projected market rents at which new leases
will be signed and renewed leases will rollover. Lease renewal probabilities, time for
finding new tenants and rental rate projections should be based on market vacancy
rate projections, which provide a very good indicator of market tightness.
Mutual Fund
 A mutual fund is a professionally managed type of collective investment scheme that

pools money from many investors and invests it in stocks, bonds, short-term money
market instruments, and/or other securities

Types of Mutual Funds
• Term of Fund
• Open - ended
• Close - ended
• Investment Objective
• Growth Funds
• Income Funds
• Balanced Funds
• Specialized Funds etc.
• Types of Investor
• Pension Funds etc.
• Management Style
• Managed Funds
• Index Funds
• Load
• Load Funds
• No load Funds etc.
ADVANTAGES OF MUTUAL FUND

• Portfolio Diversification
• Professional management
• Reduction / Diversification of Risk
• Liquidity
• Flexibility & Convenience
• Reduction in Transaction cost
• Safety of regulated environment
• Choice of schemes
• Transparency
DISADVANTAGE OF MUTUAL FUND
• No control over Cost in the Hands of an Investor
• No tailor-made Portfolios
• Managing a Portfolio Funds
• Difficulty in selecting a Suitable Fund Scheme
Risks & Diversification strategies
 Risks
 Instrument Risk
 Market Risk
 Portfolio Risk
 Business Risk
 Financial Risk
 Risk in Money Market Funds
 Risk in Bond Funds
 Risk in Stock Funds
 Strategies for risk reduction
 Diversification by investment style
 Diversification by investment objective
Who should invest in Mutual Funds?
 Novice uninformed investors
 Ordinary small investors
 Risk averse investors

 Retirees
 Investors with time constraint
 Investors on the lookout for liquidity
Steps for choosing the right Mutual Fund Scheme
 Clarity of objective
 Collect information from sources like Funds' prospectus and advisors
 Do not be swayed by peripherals
 Go through the Investment Mix carefully
 Past record is not always reliable
 Know your Fund Manager
Pointers for Measuring Mutual Fund Performance
 Standard Deviation allows you to evaluate the volatility of the fund
 Beta indicates the level of volatility associated with the fund as compared to the
benchmark
 R squared measuring the correlation of a fund's movements to that of an index, R-
squared describes the level of association between the fund's volatility and market risk
 Alpha is the difference between the returns one would expect from a fund, given its
beta, and the return it actually produces. An alpha of -1.0 means the fund produced a
return 1% higher than its beta would predict. An alpha of 1.0 means the fund
produced a return 1% lower.
Top 10 Funds
Rank Scheme Name Date NAV Last 1 Since

(Rs.) Week Inception
1 Birla Sun Life Commodity Equities Jun 21 , 13.44 4.73 20.02

Fund - Gbl Pre Metals - Retail - 2010
Growth
2 AIG World Gold Fund - Growth Jun 18 , 13.3 4.2 15.07

2010
3 ICICI Prudential Technology Fund - Jun 21 , 15.62 3.79 4.42

Growth 2010

4 JM Agri & Infra Fund- Growth Jun 21 , 2.96 3.66 -39.43
2010
5 DSP Blackrock World Gold Fund - Jun 21 , 10.35 3.66 2.66

Institutional Plan - Growth 2010

Growth 2010
7 Birla Sun Life Tax Relief 96 - Jun 21 , 11.44 3.62 6.04

Growth 2010
8 JM Equity - Growth Jun 21 , 36.5 3.61 8.87

2010
9 SBI Magnum Midcap Fund - Growth Jun 21 , 22.26 3.58 16.52

2010
10 Mire Asset China Advantage Fund - Jun 21 , 9.29 3.42 -11.14

Regular - Growth 2010
Top 10 fund
Rank Scheme Name Date NAV Last 1 Since

(Rs.) Month Inception

Institutional Plan - Growth 2010

Growth 2010
3 Birla Sun Life Commodity Equities Jun 21 , 13.44 11.74 20.02

Fund - Gbl Pre Metals - Retail - 2010
Growth
4 ICICI Prudential FMCG - Growth Jun 21 , 58.56 11.59 17.04

2010

5 ICICI Prudential Technology Fund - Jun 21 , 15.62 11.25 4.42
Growth 2010
6 DSP Blackrock World Mining Fund - Jun 21 , 9.63 10.94 -7.57

Regular - Growth 2010
7 Franklin FMCG Fund - Growth Jun 21 , 59.85 10.46 17.27

2010
8 JM Equity - Growth Jun 21 , 36.5 10.45 8.87

2010
9 Taurus Ethical Fund - Growth Jun 21 , 22.68 9.41 96.95

2010
10 ICICI Prudential Index Fund Jun 21 , 49.59 9.22 21.22

2010
Chapter - 4

Objectives and
scope
OBJECTIVES OF THE STUDY
1. To find out the Preferences of the investors for Asset Management
Company.
2. To know the Preferences for the portfolios.
3. To know why one has invested or not invested in different investment
option.

4. To find out the most preferred channel.
5. To find out what should do to boost investment plan Industry.
Scope of the study
A big boom has been witnessed in investment plan Industry in recent times. A
large number of new players have entered the market and trying to gain market
share in this rapidly improving market.
The research was carried on in New Delhi. I surveyed on my Project Topic “A
study of awareness of the Investors for investment in different investment
option” on the visiting customers of the SF Noida Branch. The study will help
to know the preferences of the customers, which company, portfolio, mode of
investment, option for getting return and so on they prefer. This project report
may help the company to make further planning and strategy.
Chapter – 5

Research
Methodology
RESEARCH METHODOLOGY
This report is based on primary as well secondary data, however primary data
collection was given more importance since it is overhearing factor in attitude
studies. One of the most important users of research methodology is that it
helps in identifying the problem, collecting, analyzing the required information
data and providing an alternative solution to the problem .It also helps in

collecting the vital information that is required by the top management to assist
them for the better decision making both day to day decision and critical ones.
Data sources:
Research is totally based on primary data. Secondary data can be used only for
the reference. Research has been done by primary data collection, and primary
data has been collected by interacting with various people. The secondary data
has been collected through various journals and websites.
Sampling:
 Sampling procedure:
The sample was selected of them who are the
customers/visitors of Sundaram finance in India, Noida branch,
irrespective of them being investors or not or availing the
services or not. It was also collected through personal visits to
persons, by formal and informal talks and through filling up the
questionnaire prepared. The data has been analyzed by using
mathematical/Statistical tool.
 Sample size:
➢ The sample size of my project is limited to 200 people
only. Out of which only 120 people had invested in
different-different investment plan. Other 80 people did
not have invested in any investment option.

 Sample design: Data has been presented with the help of bar
graph, pie charts, line graphs etc.
Limitation: 1. some of the persons were not so
responsive.
2. Possibility of error in data collection because many of
investors may have not given actual answers of my
questionnaire.
3. Sample size is limited to 200 visitors of Sundaram finance of
India, Noida Branch, and New Delhi out of these only 120 had
invested in Investment option. The sample size may not adequately
represent the whole market.
4. Some respondents were reluctant to divulge personal

information which can affect the validity of all responses.
5. The research is confined to a certain part of New Delhi

Chapter – 6
Data
Analysis
&
Interpretation
ANALYSIS & INTERPRETATION OF THE DATA

1. (a) Age distribution of the Investors of New Delhi
Age <= 31-35 36-40 41-45 46-50 >50

Group 30
No. of 12 18 30 24 20 16

Investors
Interpretation:
According to this chart out of 120 investors of Delhi the most
are in the age group of 36-40 yrs. i.e. 25%, the second most
investors are in the age group of 41-45yrs i.e. 20% and the
least investors are in the age group of below 30 yrs.
(b). Educational Qualification of investors of Delhi
Educational Number of
Qualification Investors
Graduate/ Post 88
Graduate
Under Graduate 25
Others 7
Total 120
Interpretation:

Out of 120 investors 71% of the investors in Delhi are
Graduate/Post Graduate, 23% are Under Graduate and 6% are
others (under HSC).
c). Occupation of the investors of Delhi
Occupation No. of
Investors
Govt. Service 30
Pvt. Service 45
Business 35
Agriculture 4
Others 6
Interpretation:
In Occupation group out of 120 investors, 38% are Pvt.
Employees, 25% are Businessman, 29% are Govt.
Employees, 3% are in Agriculture and 5% are in others.
(d). Monthly Family Income of the Investors of Delhi.
Income Group No. of

Investors
<=10,000 5
10,001-15,000 12
15,001-20,000 28
20,001-30,000 43
>30,000 32
Interpretation:
In the Income Group of the investors of Delhi, out of 120
investors, 36% investors that is the maximum investors
are in the monthly income group Rs. 20,001 to Rs.
30,000, Second one i.e. 27% investors are in the monthly
income group of more than Rs. 30,000 and the minimum
investors i.e. 4% are in the monthly income group of
below Rs. 10,000.
(2) Investors invested in different kind of investments.
Kind of Investments No. of

Respondents
Saving A/C 195
Fixed deposits 148
Insurance 152
Mutual Fund 120
Post office 75
(NSC)
Shares/Debent 50
ures
Gold/Silver 30
Real Estate 65

Interpretation: From the above graph it can be inferred that
out of 200 people, 97.5% people have invested in Saving A/c,
76% in Insurance, 74% in Fixed Deposits, 60% in Mutual Fund,
37.5% in Post Office, 25% in Shares or Debentures, 15% in
Gold/Silver and 32.5% in Real Estate. Most of the people wants
secure investment so they are prefer to invest in saving a/c.
3. Preference of factors while investing
Factors (a) (b) Low (c) High (d)
Liquidity Risk Return Trust

No. of 40 60 64 36
Responden
ts
Interpretation:
Out of 200 People, 32% People prefer to invest where there is
High Return, 30% prefer to invest where there is Low Risk, 20%
prefer easy Liquidity and 18% prefer Trust.
4. Awareness about investment plan and its Operations

Response Yes No
No. of Respondents 135 65
Interpretation:
From the above chart it is inferred that 67% People are aware
of investment plan and its operations and 33% are not aware of
it and its operations.
5. Source of information for customers about
investment plan
Source of No. of
information Respondents
Advertisement 18
Peer Group 25
Bank 30
Financial Advisors 62

Interpretation:
From the above chart it can be inferred that the Financial
Advisor is the most important source of information about
investment plan. Out of 135 Respondents, 46% know about it
Through Financial Advisor, 22% through Bank, 19% through
Peer Group and 13% through Advertisement.
7. Reason for not invested in investment plan
Reason No. of
Respondents
Not Aware 65
Higher Risk 5
Not any Specific 10
Reason
Interpretation:
Out of 80 people, who have not invested in any plan, 81% are
not aware of it, 13% said there is likely to be higher risk and
6% do not have any specific reason.
10. Reason for not invested in SF

Reason No. of
Respondents
Not Aware 25
Less Return 18
Agent’s Advice 22
Interpretation:
Out of 65 people who have not invested in SF, 38% were not
aware with SFMF, 28% do not have invested due to less return
and 34% due to Agent’s Advice.
11. Mode of Investment Preferred by the Investors
Mode of Investment One time Investment Systematic Investment Plan
(SIP)
No. of Respondents 78 42
Interpretation:
Out of 120 Investors 65% preferred One time Investment and
35 % Preferred through Systematic Investment Plan.

14. Preferred Portfolios by the Investors
Portfolio No. of Investors

Equity 56
Debt 20
Balanced 44
Interpretation:
From the above graph 46% preferred Equity Portfolio, 37%
preferred Balance and 17% preferred Debt portfolio
15. Option for getting Return Preferred by the Investors
Option Dividend Dividend Growt
Payout Reinvestme h
nt
No. of 25 10 8
Respondents 5
Interpretation:

From the above graph 71% preferred Growth Option, 21%
preferred Dividend Payout and 8% preferred Dividend
Reinvestment Option.
Chapter – 7
Findings and
Conclusion
Findings
➢ In Delhi in the Age Group of 36-40 years were more in
numbers. The second most Investors were in the age group
of 41-45 years and the least were in the age group of
below 30 years.
➢ In Delhi most of the Investors were Graduate or Post
Graduate and below HSC there were very few in numbers.

➢ In Occupation group most of the Investors were Govt.
employees, the second most Investors were Private
employees and the least were associated with Agriculture.
➢ In family Income group, between Rs. 20,001- 30,000 were
more in numbers, the second most were in the Income
group of more than Rs.30, 000 and the least were in the
group of below Rs. 10,000.
➢ About all the Respondents had a Saving A/c in Bank, 76%
Invested in Fixed Deposits, Only 60% Respondents
invested in Mutual fund.
➢ Mostly Respondents preferred High Return while
investment, the second most preferred Low Risk then
liquidity and the least preferred Trust.
➢ 60% Investors preferred to Invest through Financial
Advisors, 25% through AMC (means Direct Investment) and
15% through Bank.
➢ 65% preferred One Time Investment and 35% preferred
SIP out of both type of Mode of Investment.
➢ The most preferred Portfolio was Equity, the second most
was Balance (mixture of both equity and debt), and the
least preferred Portfolio was Debt portfolio.

➢ Maximum Number of Investors Preferred Growth Option for
returns, the second most preferred Dividend Payout and
then Dividend Reinvestment.
Conclusion
Running a successful investment plan requires complete
understanding of the peculiarities of the Indian Stock Market
and also the psyche of the small oaf all plan investors in
connection with the preferences of Brand (AMC), Products, and
Channels etc. I observed that many of people have feared of
invested in any plan. They think their money will not be secure
in investment. They need the knowledge of all plan and its
related terms. Many of people do not have invested due to lack
of awareness although they have money to invest. As the
awareness and income is growing the number of investors are
also growing.
“Brand” plays important role for the investment. People invest
in those Companies where they have faith or they are well
known with them. There are many AMCs in Delhi but only some
are performing well due to Brand awareness. Some AMCs are
not performing well although some of the schemes of them are
giving good return because of not awareness about Brand.
Reliance, UTI, SBI, ICICI Prudential etc. they are well known
Brand, they are performing well and their Assets Under
Management is larger than others whose Brand name are not
well known like Principle, Sundaram, etc.
Distribution channels are also important for the investment.
Financial Advisors are the most preferred channel for the
investment. They can change investors’ mind from one
investment option to others. Many of investors directly invest
their money through AMC because they do not have to pay
entry load. Only those people invest directly who know well
about plan and its operations and those have time.

Chapter – 8
Suggestions
And
Recommendations
Suggestions and Recommendations
➢ The most vital problem spotted is of ignorance. Investors
should be made aware of the benefits. Nobody will invest
until and unless he is fully convinced. Investors should be
made to realize that ignorance is no longer bliss and what
they are losing by not investing.

➢ Mutual funds offer a lot of benefit which no other single
option could offer. But most of the people are not even
aware of what actually a mutual fund is? They only see it
as just another investment option. So the advisors should
try to change their mindsets. The advisors should target
for more and more young investors. Young investors as
well as persons at the height of their career would like to
go for advisors due to lack of expertise and time.
➢ Company needs to give the training of the Individual
Financial Advisors about the Fund/Scheme and its
objective, because they are the main source to influence
the investors.
➢ Before making any investment Financial Advisors should
first enquire about the risk tolerance of the
investors/customers, their need and time (how long they
want to invest). By considering these three things they
can take the customers into consideration.
➢ Younger people aged fewer than 35 will be a key new
customer group into the future, so making greater efforts
with younger customers who show some interest in
investing should pay off.

➢ Customers with graduate level education are easier to
sell to and there is a large untapped market there. To
succeed however, advisors must provide sound advice
and high quality.
➢ Systematic Investment Plan (SIP) is one the innovative
products launched by Assets Management companies
very recently in the industry. SIP is easy for monthly
salaried person as it provides the facility of do the
investment in EMI. Though most of the prospects and
potential investors are not aware about the SIP. There is a
large scope for the companies to tap the salaried persons.
BIBLIOGRAPHY
• News paper(Business Word)

• Outlook Money
• Television Channel (CNBC AAWAZ)
• Mutual fund hand book
• Fact Sheet and Statement
• www.sbimf.com
• www.moneycontrol.com
• www.licindia.com
• www.sundaramfinance.com
• www.amfiindia.com
• www.onlinesearchonline.com
• www.mutualfundsindia.com
QUESTIONAIRE
1. In what type of financial instruments you invest?

a) Stock b) Mutual fund

c) Fixed deposits d) Any other
2. What is the purpose of your investment?
a) Increase in the total wealth b) Tax saving
c) To fill future need d) All of the above
3. Sources that helps you in making the investment decision?
a) Financial journal/business magazines
b) Television
c) General/business newspaper
d) Brokers/agents/professional consultant
4. What factors you keep in mind while investing?
a) Risk factor b) Return
c) Risk & return d) any other
5. At what time you invest?
a) When the market is rising b) When the market

is falling
c) When the market is stagnant
6) What type of portfolio you manage during different

market condition (in %)?
Equity
Dept
a) During rising market
b) In constant market
c) In declining market
7. Are you aware about BSE, NSE, and SENSEX?
a) Yes b) No
8. Do you invest in equity diversified fund?
a) Yes b) No
9. Among which assets management company you would

prefer to invest?
a) Reliance b) Sundram
c) SBI d) HDFC e) Others
10. Are you aware about Sundram’s BNP Paribas?
a) Yes b) No
11. Which would you prefer among the following fund type?
a) Tax saver b) Thematic fund c)

Hybrid fund
d) Sectorial fund e) Equity diversified fund
12. Are you able to spot the factors responsible for

fluctuation in the stock market?
a) Yes b) No
Name:-...............................................................................
................................
Age:-................................................................................
.................................
Occupation:-.......................................................................
.................................
Contact
no:-............................................................................................
.............
Address:-............................................................................
.................................

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FINAL PROJECT REPORT ON

Consumer Awareness Of The Different Investment Plan

MASTER OF BUSINESS ADMINISTRATION

Punjab Technical University,

New Delhi Institution Of Management Page 1

F-13, Phase-1,Okhla, New

FINAL PROJECT REPORT ON

Consumer Awareness Of The Different Investment Plan

Under The Guidance Of

Submitted by:- Submitted to:-

Soumitra Khawas Prof.R.K.Sharma

New Delhi Institution Of Management Page 2

Date of Project Submission:-

Signature of the student:-

Signature of the faculty guide: – Signature of research methodology

New Delhi Institution Of Management Page 3

New Delhi Institution Of Management Page 4

knowledge of mutual funds to a new Mutual Fund customer is to understand which of

Company (AMC)Which type of Product they prefer, Which Option (Growth or

Dividend) they prefer or Which Investment Strategy they follow (Systematic

Investment Plan or One time Plan).

Chapter - 2 COMPANY PROFILE……………………………….....................8

Chapter - 4 OBJECTIVES AND SCOPE………………………...................41

About the Company

Date of Establishment 1953

S.L Name Designation

2 S Venkatesan Company Secretary

8 Arnoon Raman Director

9 Srinivas Acharya Director

Sales Curre Market 52-Week

Rel. Capital 29475.50 733.95 -3.94 53.11 180282.19 987/611

Mah. Finan 13790.46 454.60 -3.73 12.85 44050.98 484/210

Sund.Fin 10918.18 437.20 -0.90 10.71 24287.30 457/250

BajAutFin 5941.33 474.30 -0.15 19.41 17357.52 509/135

Future Capital 1295.64 186.50 0.95 68.47 11857.29 305/140

PNB Gilts 755568.82 25.20 -0.79 9.27 3402.19 36/21

Shree Nath 840.9

GE Capital 1738.10 107.30 0.00 0.00 2174.30 108/106

New Delhi Institution Of Management Page 11

First Leasing 1881.40 52.05 -0.57 3.40 1186.25 70/39

TVS Finance 315.14 24.60 0.00 40.69 1018.46 25/24

New Delhi Institution Of Management Page 12

New Delhi Institution Of Management Page 15

Images for investment:-

 Higher current income

Is Investment and Speculation same?

Basis Investment Speculation

New Delhi Institution Of Management Page 16

Nature of Reward Interest or Dividends Speculative gains

Analysis/ Information Trading is done after Trading is usually done on

TYPES OF INVESTMENT AVENUES

FACTORS CONSIDERED IN THE CHOICE OF

New Delhi Institution Of Management Page 17

Advantages of Bonds over Stocks

• Senior and subordinate bonds.

• Convertible and non-convertible bonds.

• Treasury bonds and corporate bonds

New Delhi Institution Of Management Page 18

Bond yield measures

One-Period Rate of Return

Price gain or loss during the period + Coupon Interest

Current market price and if coupon interest is paid =