INTRODUCTION

Page 1
1. INTRODUCTION TO THE REPORT
Savings form an important part of the economy of any nation. With the savings invested in various
options available to the people, the money acts as the driver for growth of the country. Indian financial
scene too presents a plethora of avenues to the investors. Though certainly not the best or deepest of markets
in the world, it has reasonable options for an ordinary man to invest his savings.
One needs to invest and earn return on their idle resources and generate a specified sum of money for a
specific goal in life and 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 cost 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 service in the future as it does
now or did in the past. The sooner one starts investing the better. By investing early you allow your
investments more time to grow, whereby the concept of compounding increases your income, by
accumulating the principal and the interest or dividend earned on it, year after year.
1.2 The three golden rules for all investors are:
Invest earl
Invest regularl
Invest for long ter! and not for short ter!
1." Plan of the stud:
Cha#ter 1 covers the core areas of the report! The introduction, ob"ectives, need, #imitations and
research methodology of the study. It also covers value addition and Sources of information.
Cha#ter 2 covers the literature review given by various behavioral scientists and Investment e$perts.
Cha#ter " covers the industry profile, which is a brief e$planation of the financial Industry, governing
bodies and various investment avenues.
Cha#ter $ covers data analysis and interpretation part. %nalysis is made from the data Obtained through
&uestionnaires.
Cha#ter % covers the findings and suggestions drawn from the data analysis and Interpretations.
Cha#ter & covers the summary and conclusion of the report.
Page 2
1.$ NEED 'OR THE (TUD)
Stock market has been sub"ected to speculations and inefficiencies, which are beached to the rationality of
the investor. Traditional finance theory is based on the two assumptions. 'irstly, investors make rational
decisions( and secondly investors are unbiased in their )redictions about future returns of the stock.
*owever financial economist have now reali+ed That the long held assumptions of traditional finance theory are
wrong and found that investors ,an be irrational and make predictable errors about the return on
investment on their Investments.
This analysis on Individual Investors Behavior is an attempt to know the profile of the Investor and also
know the characteristics of the investors so as to know their preference with respect to their investments. The
study also tries to unravel the influence of demographic factors like age on risk tolerance level of the investor.
1.% *+,UE +DDITION
This analysis will help to strengthen investor intimacy. This analysis will also throw light on various
investment avenues available in India that will help in many ways like. The -$pectations of different
types of investors regarding particular service re&uirements can be identified.
The common problem areas faced by the investors can be understood.
It also enhances new services initiatives.
This study will help in gaining a better understanding of what an investor looks for in an Investment
option.
It can be used by the financial sector in designing better financial instrument customi+ed to suit the
needs of the investor.
It will also help the agents and brokers in marketing the e$isting financial instruments.
It will provide knowledge to the investors about the various financial services provided by the
company to their investors.
It will also help the company to understand what is the re&uirement and e$pectations of .ifferent
categories of investors.
This analysis will be originated in order to empower the investors with detailed research on various investments
avenues available in India. The awareness lever of the investors about the various investment options and what is
the perception of the investors with regard to the Investments they want to make.
Page 3
2. O-.ECTI*E O' THE (TUD)
The purpose of the analysis is to determine the investment behavior of investors and investment preferences for
the same. Investor/s perception will provide a way too accurately measure how the investors think about the
products and services provided by the company.
Today are trying economic conditions having forced difficult decisions for companies. 0ost are making
,onservative decisions that reflect a survival mode in the business operations. .uring
These difficult times, understanding what investors on an ongoing basis is critical for survival. -$ecutives need
a third party understanding on where investor s loyalties stand. 0ore than -ver management needs ongoing
feedback from the investors, partners and employees in Order to continue to innovate and grow.
The !ain o/0e1tive of the #ro0e1t is to find out the needs of the 1urrent and future Investors.

'or this analysis, customer perception and awareness level will be measured in important %reas such as!
1. To understand in depth about different investment avenues available in India.
2. To find out how investors get information about the various financial instruments.
3. The type of financial instruments, they would prefer to invest.
4. The duration for which they would prefer to keep their money invested.
5. What are the factors that they consider before investing6
7. To give a recommendations to the investors that where they should invest.
8. To know the risk tolerance level of the individual investor and suggest a suitable
)ortfolio.
9. To develop a profile of sample Indian individual investor in terms of their demographics. %nd demographics
based on occupation of the sample investor.
:. To identify the ob"ective of savings of an investor.
1;. To study the dependence<independences of the demographic factors =%ge> of the Investor and
his<her risk tolerance level.
Page 4
". ,I2IT+TION( O' THE (TUD)
This analysis is based upon investor/s behavior for investment preferences during ?ormal time vis@A@
vis recessionary period. This analysis would be focusing on the information from the investors about their
knowledge, perception and behavior on different financial )roducts.
The various li!itations of the stud are:
The total number of financial instruments in the market is so large that it needs a lot of Besources to
analy+e them all. There are various companies providing these financial Instruments to the public.
*andling and analy+ing such a varied and diversified data ?eeds a lot of time and resources.
%s the analysis is based on primary as well as secondary data, possibility of unauthori+ed Information cannot
be avoided.
Beluctance of the people to provide complete information about them can affect the Calidity of the
responses.
The lack of knowledge of customers about the financial instruments can be a ma"or #imitation.
The information can be biased due to use of &uestionnaire.
Page 5
,ITER+TURE RE*IE3
Page 6
%. ,ITER+TURE RE*IE3:
#iterature suggests that ma"or research in the area of investor/s behavior has been done by
behavioral scientists such as Weber, Sheller and Schifrin. Sheller who strongly advocated that stock
market is governed by the market information which directly affects the Behavior of the investors. Several
studies have brought out the relationship between the .emographics such as Dender, %ge and risk
tolerance level of individuals. Of this the Belationship between %ge and risk tolerance level has attracted much
attention.
*orvath and Euckerman suggested that one/s biological, demographic and socioeconomic
characteristics( together with his<her psychological makeup affects one/s risk Tolerance level. 0ilkier
suggested that an individual s risk tolerance is related to his<her *ousehold situation, lifecycle stage and
sub"ective factors. 0uttra discussed factors that were related to individuals risk tolerance, which included
years until retirement, knowledge Sophistication, income and net worth. Duise, %ppellee and Terli++ese,
Ba"telsmit and Cen.erhei, )owell and %nsic, Fianakoplos and Bernasek, *ariharan, ,hapman and .omain, *artog,
'errer@I@ ,arbonell and Fonker concluded that males are more risk tolerant than females.
Wallach and Gogan were perhaps the first to study the relationship between risks Tolerance and
age. ,ohn, #lewellyn et.al found risky asset fraction of the portfolio to be positively correlated with
income and age and negatively correlated with marital status. 0orin and Suare+ found evidence of increasing risk
aversion with age although the households appear to become less risk averse as their wealth increases. HOO found
that the change in the risky %sset holdings were not uniform. *e found individuals to increase their
investments in risky %ssets throughout their working life time, and decrease their risk e$posure once they
retire.
#lewellyn et.al while identifying the systematic patterns of investment behavior e$hibited by
Individuals found age and e$pressed risk taking propensities to be inversely related with ma"or Shifts taking place
at age 55 and beyond. Indian studies on individual investorsI were mostly confined to studies on share
ownership, e$cept a few. The BBIIs survey of ownership of shares %nd #.,. DuptaIs en&uiry into the ownership
pattern of Industrial shares in India were a few in this direction. The ?,%-BIs studies brought out the fre&uent
form of savings of individuals and the components of financial investments of rural households. The Indian
Shareowners Survey Brought out a volley of information on shareowners. ?atara"an C classified investors on
the Basis of their demographics. *e has also brought out the investorsI characteristics on the basis Of their
investment si+e. *e found that the percentage of risky assets to total financial Investments had declined as
the investor moves up through various stages in life cycle. %lso InvestorsI lifestyles based characteristics has been
identified. The above discussion presents a detailed picture about the various facets of risk studies that have taken
place in the past. In the )resent study, the findings of many of these studies are verified and updated.
Page 7

RE(E+RCH
2ETHODO,O4)
Page 8
$. RE(E+RCH 2ETHODO,O4)
4.1(a!#ling te1hni5ue
Initially, a rough draft will be prepared keeping in mind the ob"ective of the research. % )ilot study will
be undertaken in order to know the accuracy of the &uestionnaire. The final Juestionnaire will be arrived at
only after certain important changes are incorporated. ,onvenience sampling techni&ue will be used for
collecting the data from different investors. The investors are selected by the convenience sampling method.
The selection of units from the population based on their easy availability and accessibility to the researcher is
known as ,onvenience sampling. ,onvenience sampling is at its best in surveys dealing with an
e$ploratory purpose for generating ideas and hypothesis.
$.1.1 (a!#ling unit:
The respondents who will be asked to fill out the &uestionnaires are the sampling units. These comprise of
employees of 0?, s, government employees, housewives, self@employed, )rofessionals and other investors.
$.1.2 (a!#ling si6e:
The sample si+e will be restricted to only 1;;, which comprised of mainly people from .ifferent
regions of Cadodara due to time constraints.
$.1." (a!#ling area:
The area of the research is Cadodara.
Page 9
$.2 (OURCE( O' IN'OR2+TION
$.2.1 Pri!ar Data!
Information is collected by conducting a survey by distributing a &uestionnaire to 1;; investors in
Cadodara. These 1;; investors are of different age group, different Occupation, .ifferent income levels, and
different &ualifications. =% copy of the &uestionnaire is given in the last as Juestioner>.
$.2.2 (e1ondar Data:
This data is collected by using the following means.
1. %rticles in 'inancial ?ewspapers =-conomic times and Business Standard>.
2. Investment 0aga+ines, Business 0aga+ines, 'inancial chronicles.
3. -$pert s opinion published in various print media.
4. Books written by various 'oreign and Indian authors on Investments.
5. .ata available on internet through various websites
Page 10
PRO'I,E O' CO2P+N)
Page 11
&.7 PRO'I,E O' CO2P+N)
Indian financial industry is considered as one of the strongest financial sectors among the world
markets. 0any industry e$perts may give various reasons for such Indian financial Industry reputation, but
there is only one answer which no one can deny, is the effective ,ontrol and governance of the country s
supreme monetary authority the RE(ER*E -+N8 O' INDI+ =BBI>.
'inancial sector in India has e$perienced a better environment to grow with the )resence of
higher competition. The financial system in India is regulated by independent Begulators in the field of
banking, insurance, and mortgage and capital market. Dovernment of India plays a significant role in controlling
the financial market in India.
0inistry of 'inance, Dovernment of India controls the financial sector in India. -very Hear the
finance ministry presents the annual budget on 29th 'ebruary. The Beserve Bank of India is an ape$ institution in
controlling banking system in the country. Its monetary policy acts as a ma"or weapon in IndiaIs financial market.
*arious governing /odies in finan1ial se1tor:
1. R-I 9 Beserve Bank of India is the supreme authority and regulatory body for all the monetary
transactions in India. BBI is the regulatory body for various Banking and ?one Banking financial
institutions in India.
2. (E-I 9 Securities and -$change Board of India is one of the regulatory authorities for IndiaIs capital
market.
". IRD+ 9 Insurance regulatory and development authority in India regulates all the Insurance
companies in India.
$. +2'I @ %ssociation of mutual funds in India regulates all the mutual fund companies in India.
%. 'IP- @ 'oreign investments promotion board regulates all the foreign direct investments 0ade in India.
0inistry of housing is planning to establish a real estate regulatory and governing body by
the end of financial year 2;1; @ 11.
Investments in gold is governed by the world gold council, in India we do not have any
regulatory authority for investments in gold.
0inistry of 'inance, Dovernment of India has a control over all the financial Bodies in India.
Dovernment securities, )ublic )rovident 'und =))'>, ?ational Savings ,ertificate =?S,>, and )ost
Page 12
Office Savings are all under the control of the central government.
Investment are normally categori+ed using the risk involved in it, risk is dependent on various 'actors like the
past performance, its governing body, involvement of the government etc., in This scenario Indian investments
are classified in to 3 categories based on risk. They are
1. #ow Bisk< ?o Bisk Investments.
2. 0edium Bisk Investments.
3. *igh Bisk Investments.
%part from these, there are traditional investment avenues and emerging investment avenues.
Page 13
&.1*arious Invest!ent avenues availa/le in India
(afe:,o; Ris< +venues:
Dovernment Securities.
Savings %ccount
Bank 'i$ed .eposits.
)ublic )rovident fund.
?ational savings certificates.
)ost office savings.
2oderate Ris< +venues:
0utual 'unds.
#ife Insurance.
.ebentures.
Bonds.
High Ris< +venues:
-&uity Share 0arket.
,ommodity 0arket.
'OB-K 0arket.
Traditional +venues:
Beal -state =property>.
Dold<Silver.
,hit 'unds.
E!erging +venues:
Cirtual Beal -state.
*edge 'unds<)rivate -&uity Investments.
%rt and )assion.
Page 14
DE(CRIPTION ON *+RIOU( IN*E(T2ENT +*ENUE(
&.1.14O*ERN2ENT (ECURITIE( =49sa1s>
Dovernment securities =D@sacs> are supreme securities which are issued by the Beserve Bank of India on
behalf of Dovernment of India in lieu of the ,entral DovernmentIs market borrowing program.
The term Dovernment Securities includes!
,entral Dovernment Securities.
State Dovernment Securities
Treasury bills

The ,entral Dovernment borrows funds to finance its Ifiscal deficitI. The market borrowing of the ,entral
Dovernment is increased through the issue of dated securities and 374 .ay/s treasury bills either by auction or by
floatation of loans. In addition to the above, treasury Bills of :1 days are issued for managing the temporary cash
mismatches of the Dovernment.
These do not form part of the borrowing program of the ,entral Dovernment.
'eatures:
Issued at face value
?o default risk as the securities carry sovereign guarantee.
%mple li&uidity as the investor can sell the security in the secondary market
Interest payment on a half yearly basis on face value
?o ta$ deducted at source
,an be held in .emit form.
Bedeemed at face value on maturity
0aturity ranges from of 2@3; years.
Securities &ualify as S#B investments =unless otherwise stated>.
-enefits of Investing in 4overn!ent (e1urities
?o ta$ deducted at source
%dditional Income Ta$ benefit u<s 9;# of the Income Ta$ %ct for Individuals
Jualifies for S#B purpose
Eero default risk being sovereign paper
*ighly li&uid.
Page 15
&.1.1.1(+*IN4( +CCOUNT
%s the name denotes, this account is perfect for parking your temporary savings. These %ccounts are one of
the most popular deposits for individual accounts. These accounts provide ,heese facility and a lot of fle$ibility
for deposits and withdrawal of funds from the account. 0ost of the banks have rules for the ma$imum
number of withdrawals in a period and the 0a$imum amount of withdrawal, but no bank enforces these.
*owever, banks have every right to enforce such boundaries if it is felt that the account is being misused as a current
account. %t )resent the interest on these accounts is regulated by Beserve Bank of India. )resently Indian Banks
are offering 3.5;L p.a. interest rate on such deposits.
This account gives the customer a nominal rate of interest and he can withdraw money as and when the
need arises. The position of account is depicted in a small book known as I)ass BookI. Such accounts should be
treated as a temporary parking area because the rate of Interest is much less than 'i$ed .eposits. %s soon as
one/s savings accumulate to an amount which he can spare for a certain period of time, shift this money to 'i$ed
.eposit. The returns on the money kept in Savings Bank account will be less but the freedom to withdraw is
the *ighest.
&.1.1.2'I?ED DEPO(IT(: TER2 DEPO(IT( ='D:TD>
The term Mfi$edM in 'i$ed .eposits denotes the period of maturity or tenor. 'i$ed .eposit,
therefore, pre plans a length of time for which the depositor decides to keep the 0oney with the Bank and
the rate of interest payable to the depositor is decided by this tenure. Bate of interest differs from Bank to Bank.
?ormally, the rate is highest for deposits for 3@5 Hears. This, however, does not mean that the depositor loses
all his rights over the money for the duration of the tenor decided. .eposits can be withdrawn before the
period is over. *owever, the amount of interest payable to the depositor, in such cases goes down.
-very Banks offer fi$ed deposits schemes with a wide range of tenures for periods from 8 days to 1; years.
Therefore, the depositors are supposed to continue such 'i$ed .eposits for The duration of time for which the
depositor decides to keep the money with the bank. *owever, in case of need, the depositor can ask for
closing the fi$ed deposit in advance by paying a penalty. Soon some banks have even introduced variable
interest fi$ed deposits. The Bate of interest in such deposits will keep on varying with the prevalent market rates
i.e. it will go up if market interest rate goes and it will come down if the market rates fall.
Ta@ dedu1tion: Banks should deduct ta$ at source on interest paid in e$cess of Best. 5;;; per %nnum to any
depositor. This is not per deposit but per individual. Therefore if an individual has 5 deposits and the aggregate
interest earned on these is Best. 8;;; though in each individual .eposit, interest should not e$ceed Best. 2;;;, ta$
must be deducted at source.
Page 16
&.1.1."PU-,IC PRO*IDENT 'UND =PP'>
))' is a 3; year old constitutional plan of the ,entral Dovernment happening with the Ob"ective of
providing old age profits security to the unorgani+ed division workers and self -mployed persons.
,urrently, there are almost 3; lakhs ))' account holders in India across Banks and post offices.
Eligi/ilit: %ny individual salaried or non@salaried can open a ))' account. *e may also pledge On behalf of a
minor, *N', %O) and BOI. -ven ?BIs can open ))' account. % person can contain only one ))' account. %lso two
adults cannot open a combined ))' account. The collective %nnual payment by an individual on account of
himself his minor child and *N'<%O)<BOI =of which individual is member> cannot e$ceed Bs.8;, ;;; or
else the e$cess amount will be Beturned without any interest.
(u/s1ri#tion: The yearly contribution to ))' account ranges from a least of Bs.5;; to a 0a$imum of
Bs.8;, ;;; payable in multiple of Bs.5 either in lump sum or in convenient Installments, not e$ceeding 12
in a year.
Penalt in 1ase of non9su/s1ri#tion: The account will happen to obsolete if the re&uired 0inimum of
Bs.5;; is not deposited in any year. The amount before now deposited will ,ontinue to earn interest but
with no facility of taking loan or making withdrawals. The account can be regulari+ed by depositing for each
year of default, arrears of Bs.5;; along with penalty Of Bs.1;;.
3here to o#en: % ))' account can be opened at any branch of State Bank of India or its Subsidiaries or in
few national banks or in post offices. On opening of account a pass book will be issued wherein all amounts of
deposits, withdrawals, loans and repayment together with Interest due shall be entered. The account can also be
transferred to any bank or post office in India.
Interest rate: .eposits in the account earn interest at the rate notify by the ,entral Dot from Time to time.
Interest is designed on the lowest balance among the fifth day and last day of the ,alendar month and is
attributed to the account on 31st 0arch every year. So to derive the 0a$imum, the deposits should be made
between 1st and 5th day of the month, as it also enables you to earn interest on your Savings Bank %<c for the
previous month.
Tenure: -ven though ))' is 15 year scheme but the effectual period works out to 17 years i.e. the year of opening
the account and adding 15 years to it. The sum made in the 17th financial Hear will not earn any interest but one
can take advantage of the ta$ rebate.
Page 17
3ithdra;al: The investor is allowable to make one removal every year beginning from the Seventh
financial year of an amount not more than 5;L of the balance at the end of the fourth Hear or the financial year
immediately preceding the withdrawal, whichever is less. This facility of making partial withdrawals provide
li&uidity and the withdrawn amount can be used for any )urpose.
&.1.1.$ N+TION+, (+*IN4( CERTI'IC+TE =N(C>
?ational Savings ,ertificate =?S,> is a fi$ed interest, long term instrument for Investment. ?S,s
are issued by the .epartment of )ost, Dovernment of India. Since they are Backed by the Dovernment of India,
?S,s are a practically risk free avenue of investment. They can be bought from authori+ed post offices. ?S,s have
a maturity of 7 years. They offer a rate of return of 9L per annum. This interest is calculated every si$ months, and
is merged with the )rincipal. That is, the interest is reinvested, and is paid along with the principal at the time of
0aturity. 'or every Best. 1;; invested, you receive Best. 17;.1; %t maturity.
?S,s &ualify for investment under Section 9;, of the Income Ta$ %ct =IT %ct>. -ven the Interest earned
every year &ualifies under Sec 9;,. This means that investments in ?S,s and The interest earned on it every
year, up to Best. 1 #akh, are deductible from the income of the Investor. There is no ta$ deducted at source =T.S>.
'eatures of N(C
0inimum investment Best. 5;;<@ ?o ma$imum limit.
Bate of interest 9L compounded half yearly.
Best. 1;;;<@ grow to Best. 17;1<@ in si$ years.
Two adults, Individuals, and minor through guardian can purchase.
,ompanies, Trusts, Societies and any other Institutions not eligible to purchase.
?on@resident Indian<*N' cannot purchase.
?o pre@mature encashment.
Page 18
&.1.1.% PO(T O''ICE (+*IN4(
There are various investment schemes available in post offices, like GC) =Gian Cisas )etra>, 0IS
=0onthly Income Scheme> and various others. %ll these schemes are completely Bisk@free, and you do not need
to have large sum of money to start investing in these post office Schemes. Some schemes offer Ta$@saving benefits
and some gives ta$@free returns. So you need to find out some scheme as per your re&uirements.
These are some of the safe and secure investments that you can opt for. Though the interest Bates are not so
high, but still you must invest some part of your money into any of these Investment instruments. It is your
hard@earned money, so better play safe and invests some )art in secure funds also.
&.1.2 2UTU+, 'UND(
% mutual fund is a professionally@managed firm of collective investments that pools 0oney from
many investors and invests it in stocks, bonds, short@term money market Instruments, and<or other
securities. In a mutual fund, the fund manager, who is also known as The portfolio manager, trades the fundIs
underlying securities, reali+ing capital gains or losses, %nd collects the dividend or interest income. The
investment proceeds are then passed along to the individual investors. The value of a share of the mutual fund,
known as the net asset value per share =?%C>, is calculated daily based on the total value of the fund divided by
the number of shares currently issued and outstanding.
+dvantages of 2utual 'unds
1. .iversification
2. )rofessional 0anagement
3. Begulatory oversight
4. #i&uidity
5. ,onvenience 7. Transparency
8. 'le$ibility
9. ,hoice of schemes
:. Ta$ benefits
1;. Well regulated
'ollo;ing are the fe; dra;/a1<s of 2utual 'unds:
1. ?o Duarantees
2. 'ees and commissions
3. Ta$es
4. 0anagement risk
Page 19
&.1." ,I'E IN(UR+NCE
#ife insurance is a contract between the policy owner and the insurer, where the insurer %grees to pay an
amount of money upon the happening of the insured individualIs or IndividualsI death or other event, like
terminal illness, critical illness. In return, the policy owner %grees to pay a fi$ed amount called a premium at
regular intervals or in bulge sum. #ike other insurance policies, life insurance is also a contract between the
insurer and the policy owner whereby a benefit is paid to the nominated beneficiaries if an insured event
Occurs which is covered by the policy. The assessment for the policyholder is derived not from an actual claim
event. But to a certain e$tent it is the value derived from the Ipeace of mindI -$perienced by the policyholder,
because of the negating of adverse financial conse&uences ,aused by the death of the #ife %ssured. To be a life
policy the insured event must be based upon the lives of the people named in the policy.
+dvantages of a ,ife Insuran1e Poli1
1. 'inancial Security
2. *elps to diverts States Besources for Other )urpose
3. 'acilitates -conomic 0ovements
4. *elps to %vail Ta$ -$emptions
&.1.$ -OND( A DE-ENTURE(
Bonds O .ebentures, these two words can be used interchangeably. In Indian markets, we use the word
bonds to indicate debt securities issued by government, semi@government Bodies and public sector financial
institutions and companies. We use the word debenture to Befer to the debt securities issued by private sector
companies.
-onds @ .ebt securities issued by Dovt. or )ublic sector companies
De/entures @ .ebt securities issued by private sector companies
In other words we can tell that a bond is a debt security, similar to an I.O.N. When you purchase % bond, you are
lending money to a government, municipality, corporation, or )ublic entity Gnown as the issuer. The issuer
promises to pay you a specified rate of interest during the life of the bond, in return for the loan. They also
promises to repay the face value of the bond =the )rincipal> when it matures.
'ollo;ing are allo;ed to issue /onds
Dovernments
0unicipalities
Cariety of institutions
Page 20
,orporations
-uing and Holding of -onds: Investors can subscribe to primary issues of ,orporates and 'inancial Institutions
='Is>. It is common practice for 'Is and ,orporates to raise funds for asset 'inancing or capital e$penditure through
primary bond issues. Some bonds are also available in the secondary market. The minimum investment for bonds
can either be Best 5,;;; or Best 1;,;;;.
*owever, this amount varies from issue to issue. There is no prescribed upper limit to your Investment. The
duration of a bond issue usually varies between 5 and 8 years.
(elling of -onds: Selling bonds in the secondary market has its own drawbacks. 'irst, there is a #i&uidity problem
which means that it is a tough "ob to find a buyer. Second, even if you find a Buyer, the prices may be at a
sharp discount to its intrinsic value. Third, you are sub"ect to 0arket forces and, hence, market risk. If
interest rates are running high, bond prices will be down and you may well end up incurring losses. On the
other hand, .ebentures are always secured.
De/entures! % debenture is similar to a bond e$cept the securiti+ation conditions are different. % .ebenture is
generally unsecured in the sense that there are no liens or pledges on specific %ssets. It is defined as a certificate
of agreement of loans which is given under the companyIs Stamp and carries an undertaking that the debenture
holder will get a fi$ed return =fi$ed on the Basis of interest rates> and the principal amount whenever the debenture
matures.
De/entures vs. -onds:
.ebentures and bonds are similar e$cept for one difference bonds are more secure than .ebentures. In case
of both, you are paid a guaranteed interest that does not change in value Irrespective of the fortunes of the
company. *owever, bonds are more secure than debentures, but carry a lower interest rate. The company provides
collateral for the loan. 0oreover, in case Of li&uidation, bondholders will be paid off before debenture holders.
&.1.% (TOC8 2+R8ET
The first step is to understand the stock market. % share of stock is the smallest unit of Ownership in a
company. If you own a share of a company s stock, you considered as the part Owner of the company.
(to1< 2ar<et Trading
Stock market trading consists of buying and selling of company stocks and as well as Stock
derivatives. This type of trading usually takes place in a stock e$change, in which ,ompanies need to be
listed in order for their shares to be bought and sold. This trading market )rovides with substantial earnings
potential and is one among the most popular investment Options.
Page 21
3or<ing of (to1< 2ar<et
Stock market trading is normally done by brokers. %s a result, the first step is to seek a Beliable
investment broker. Stock market trading occurs at a physical stock e$change, where Buyers and sellers of
company shares meet and agree on the price at which the transactions would materiali+e.
,onventional stock trading entails an investor placing an order for a specific number of Shares of a
company with his<her broker present in the physical stock market. The broker 'orwards the order to the
floor clerk, who then attempts to locate a trader desire to sell those Shares. Bids are then e$changed. The
transaction closes only after the buyer agrees on the price Juoted by the seller. This techni&ue is also called open
outcry, because it involves traders crying out their bids.
Stock market trading will also takes place online. This procedure is much &uicker and less complicated
than trading in the physical stock market. Online stock market trading engrosses the real time placement
of buying and selling orders for stocks. The transaction is accomplished when the trading system is capable to
match bids and a confirmation is received.
-enefits of (to1< 2ar<et Trading
1. It promotes economic growth.
2. It helps companies raise capital and handle financial issues.
3. It ensures that money is invested in businesses to enhance profit potential.
4. It helps investors reali+e substantial profits.
Dra;/a1<s of (to1< 2ar<et Trading:
1. It proposes lower leverage than other forms of trading, such as 'ore$ trading.
2. The short selling of stocks is hard, because stock prices do not appreciate significantly in a short span of
time. %ccordingly, there is a wait period before you can book healthy )rofits.
3. It is traded for limited hours in a day.
&.1.%.1 Co!!odit Trading.
The terms commodities and futures are often used to depict commodity trading or 'utures trading.
It is similar to the way stocks and e&uities are used when investors talk about the stock market.
,ommodities are the actual physical goods like gold, crude oil, corn, Soybeans, etc. 'utures are contracts of
commodities that are traded at a commodity e$change #ike 0,K. %part from numerous regional e$changes,
India has three national commodity -$changes namely, 0ulti ,ommodity -$change =0,K>, ?ational
Page 22
,ommodity and .erivatives -$change =?,.-K> and ?ational 0ulti@,ommodity -$change =?0,->.
'orward 0arkets ,ommission ='0,> is the regulatory body of commodity market.
It is one of a few investment areas where an individual with limited capital can make e$traordinary
profits in a relatively short period of time. 0any people have become very rich by Investing in commodity
markets. ,ommodity trading has a bad name as being too risky for the %verage individual. The fact is that
commodity trading is only as risky as you want to make it. Those who treat trading as a get@rich@&uick scheme are
likely to lose because they have to take big risks. If you act carefully, treat your trading like a business and are
willing to settle for a Beasonable return, the possibility of success is very high.
The course of trading commodities is also known as futures trading. Nnlike other kinds of investments,
such as stocks and bonds, when you trade futures, you do not really buy anything or own anything. Hou
are speculating on the future direction of the price in the ,ommodity you are trading. This is like a bet on
future price direction. The terms MbuyM and MSellM merely indicate the direction you e$pect future prices will
move. If, for e$ample, you were Speculating in wheat, you would buy a futures contract if you thought the price
would be going up in the future. Hou would sell a futures contract if you thought the price of wheat would go
down. 'or every trade, there is always a buyer and a seller. ?either person has to own any Wheat to
participate. But he has to deposit sufficient capital with a brokerage firm to insure that he will be able to pay
the losses if his trades lose money.
3or<ing of Co!!odit 2ar<et: ,ommodity 0arket works Fust like stock futures. When you Buy 'utures,
you donIt have to pay the entire amount, "ust a fi$ed percentage of the cost. This is known as the margin. #etIs say
you are buying a Dold 'utures contract. The minimum contract Si+e for a gold future is 1;; 0gs. 1;; gems of
gold may be worth Best. 1, 5;,;;;. The margin for Dold set by 0,K is 3.5L. So you only end up paying Best
5,25;.
The low margin means that you can buy futures representing a large amount of gold by paying only a
fraction of the price. So you bought the Dold 'utures contract when it was Best. 1, 5;,;;; per 1;; gems. The
ne$t day, the price of gold rose to Best 1, 7;,;;; per 1;; gems. Best 1;,;;; =Best 1, 7;,;;; @ Best 1, 5;,;;;>
will be credited to your account. The following day, the price .ips to Best 1, 55,;;;. Best 5;;; will get debited from
your account =Best 1, 7;,;;; @ Best 1, 55,;;;>.
&.1.& 'ORE? 2+R8ET
'ore$ trading is the immediate trade of one currency and the selling of another. ,urrencies are
traded through an agent or dealer and are traded in pairs. 'or e$ample -uro =-NB>, NS dollar =NS.>, British pound
=DB)> or Fapanese Hen =F)H>.
*ere you are not buying anything physical( this type of trading is confused. Think of buying a
currency as buying a share of a particular country. When you purchase say Fapanese Hen, you are in effect buying
a share in the Fapanese financial system, as the price of the ,urrency is a direct reflection of what the market
Page 23
thinks about the current and future health of The Fapanese economy. In common, the e$change rate of a currency
versus other currencies is a Beflection of the condition of that countryIs financial system compared to the other
countries financial system.
Nnlike other financial markets like the ?ew Hork Stock -$change, the 'ore$ spot market has neither a
physical location nor a central e$change. The 'ore$ market is measured an Over@ The@,ounter =OT,> or
Interbank market, due to the fact that the entire market is run electronically within a network of banks
continuously over a 24@hour period.
Nntil the late 1::;Is only the big guys could play this game. The first re&uirement was that you could
trade only if you had about ten to fifty million bucks to start with 'ore$. 'ore$ Was initially intended to be
used by bankers and large institutions and not by small guys. *owever because of the rise of the Internet,
online 'ore$ trading firms are now able to offer Trading accounts to IretailI traders. %ll you need to get
started is a computer, a high@speed Internet connection, and the information.
The foreign e@1hange !ar<et is e@1lusive /e1ause of the follo;ing reasonsB
Its trading volumes
The tremendous li&uidity of the market
Its geographical dispersion
Its long trading hours
The variety of factors that affect e$change rates.
The low limits of profit compared with other markets of fi$ed income but profits
,an be high due to very great trading volumes
The use of leverage
-enefits of 'ore@ Trading
1. 'ore$ is the largest market.
2. ?o Bulls or BearsP
3. 'ore$ trading online offers great leverage
4. 'ore$ prices are predictable.
5. 'ore$ trading online is commission free
7. 'ore$ trading online is instant.
Page 24
&.1.C RE+, E(T+TE +( +N IN*E(T2ENT OPTION
The growth curve of Indian economy is at an all@time high and contributing to the Npswing is the
real estate sector in particular. Investments in Indian real estate have been strongly taking up over other options
for domestic as well as foreign investors.
The boom in the sector has been so appealing that real estate has turned out to be a ,onvincing
investment as compared to other investment vehicles such as capital and debt 0arkets and bullion market. It
is attracting investors by offering a possibility of stable income Hields, moderate capital appreciations, ta$
structuring benefits and higher security in ,omparison to other investment options.
% survey by the 'ederation of Indian ,hambers of ,ommerce and Industry ='I,,I> and -rnst O Houng
has predicted that Indian real estate industry is poised to emerge as one of the most preferred investment
destinations for global realty and investment firms in the ne$t few Hears. The potential of IndiaIs property
market has a revolutioni+ing effect on the overall -conomy of India as it transforms the skyline of the
Indian cities mobili+ing investments Segments ranging from commercial, residential, retail, industrial,
hospitality, healthcare etc. But 0a$imum growth is attributed to its growth from the booming IT sector, since an
estimated 8; )er cent of the new construction is for the IT sector.
Beal estate industry research has also thrown light on investment opportunities in the ,ommercial
office segment in India. The demand for office space is e$pected to increase Significantly in the ne$t few
years, primarily driven by the IT and IT-S industry that re&uires an )ro"ected office space of more than 378
million s&. ft. till 2;12@13.
&.1.D IN*E(T2ENT IN 4O,D
Dold has got lot of emotional value than monetary value in India. India is the largest ,onsumer of
gold in the world. In western countries, you can find most of their gold in their ,entral banks. But in India,
we use gold mainly as "ewels. If you look at gold in a business sense, you will understand that gold is one of the
all@time best investment tool. 0y dear readers, today I would like to discuss on investments in gold and its
potential.
Indian 4old 2ar<et Current (1enario:
Si+e of the Dold -conomy! more than Best. 3;,;;; crores
Page 25
?umber of gold "ewelry manufacturing units! 1, ;;,;;;
?umber of people employed! 5, ;;,;;;
Dems O Feweler constitute 25L of IndiaQRs e$ports about 1;L of our import bill ,onstitute gold
import.
?umber of banks allowed importing gold! 15 =While recently this has been liberali+ed, .etailed
notification is awaited>
Official estimates of the stock of gold in India! :,;;; tons
Nnofficial estimates of the stock of gold in India! 12,;;; QC 14,;;; tons
Dold held by the Beserve Bank of India! 359 tons
Dold production in India! 2 tons per annum.

De!and for gold in the Indian 2ar<et:

India has the highest demand for gold in the world and more than :;L of this gold is ac&uired in the
form of "eweler. 'ollowing are the factors influencing the demand for gold. The movement of gold prices is
one of the important variables determining demand for gold. The increase in the irrigation, technological change
in agriculture =through mechani+ation and *igh yielding varieties>, have generated large marketable surplus
and a highly skewed rural Income distribution is another factors contributing to additional demand for gold.
(u##l of 4old: The main economic effects that arise from the changes in the supply of gold can be seen against
the &uantum of gold that is already in e$istence in the economy. The supply of gold is not up to the re&uirements
as the production of gold is also coming down and .emand for gold is going up very sharply.
4old as an Invest!ent O#tion:
Dold as an investment tool always gives good returns, fle$ibility, safety and li&uidity to the investors.
Therefore as a financial consultant my advice to you all is, kindly allocate a )ortion of your portfolio for
gold investments. )ractice the habit of buying at least one gram of Dold every month.
&.1.EHED4E 'UND(
Over the last 15 years, hedge funds have become increasingly popular with high net worth individuals,
as well as institutional investors. The number of hedge funds has risen by about 2;L per year and the rate of
growth in hedge fund assets has been even more rapid.
% hedge fund is a private investment fund, charging a performance fee and is open to only a limited
number of investors. These funds are like mutual funds, which collect money from investors and use the
Page 26
proceeds to buy stocks and bonds. They can invest on almost any Type of opportunity( in any market where in
good returns are e$pected with low risk levels.
Hedge 'und Ris<s:
#ack of transparency
#imited li&uidity
.ifficulty accessing &uality hedge funds
Nnreliable or incomplete return data
Caluation risk
%symmetrical nature of *edge fund returns distributions SSG-WT
,ounterparty risk S#everageT
&.1.17 E2ER4IN4 IN*E(T2ENT +*ENUE(
%ccording to a study undertaken "ointly by 0errill #ynch, ,ap Demini, and -rnst O Houng, *igh
?et worth Individuals S*?IsT or wealthy investors are proactive in portfolio 0anagement, risk
management, consolidation financial assets and use of diversification Strategies as actively as large
institutions. *?Is are proactive in identifying new investment Options and take inputs from professional
advisors in volatile market conditions.
*?Is are dynamic in modifying their asset allocation and were among the first investors to move from
e&uities to fi$ed income during 2;;1@2;;2 period of downturn in e&uity markets. They shifted back to e&uities
when they identified favorable market trends.
Invest!ent #rodu1ts and avenues
2anaged #rodu1ts: 0anaged product service is the most popular investment strategy %dopted by
wealthy investors globally
Real Estate: Wealthy investors have found this asset class very attractive and have invested directly in
real estate and indirectly through real estate investment trusts.
+rt and #assion: Wealthy investors also have their investment in art, wine, anti&ues, and collectibles
o Pre1ious 2etals: Dold and other precious metals are attractive investment options to Balance the
asset allocation
o Co!!odities: Wealthy investors have turned to commodities to offset the lower Beturns
from fi$ed income securities.
Page 27
+lternative invest!ents: *edge funds and )rivate e&uity investments such as venture 'unds are
becoming increasingly popular with wealthy investors to reduce the investment risks Belated to stock
market fluctuations. This is because these instruments have low correlation with e&uity asset class
performance. Investment in non@correlated assets, such as commodities *elps to improve diversification of
the portfolio amidst volatile market conditions.
&.1.11 IN*E(T2ENT IN +RT
Today, we find that an increasing number of individuals are looking at alternative Investments,
which provide them with a diversification away from a particular asset class. )eople are willing to invest
and looking for areas other than the stock market for investing. Investing in the vintage wine, coins, stamps and
%rt, is now an indulgence which gives them an Opportunity to cash in on their hobbies, without having the level
of e$pertise that is re&uired for other direct investments.
%rt is being incorporated into the investorIs overall asset allocation decision. The art Scene around the
world is growing significantly. With more and more investors looking at art as %n alternative asset class and a
store of a long term value, average annual art valuations have Outpaced average annual stock market valuations by
more than three times since 2;;;.
&.1.12PRI*+TE EFUIT) IN*E(T2ENT(
Is the most important funding source in the entrepreneurial marketplace6 )rivate -&uity
investments contribute to the funding of around 25 times the number of businesses the Centure capitalists fund
each year.
)rivate e&uity investments are usually derived from a high net@worth individual who represents an
essential source of funding for early stage, high@risk ventures. It is estimated that One@seventh of the 3;;,;;; U
start<early growth firms in the NS receive funding from angel Investors. This translates into over V2; billion of
investment in appro$imately 5;,;;; deals each Hear. This investment group e$ceeds venture capital sources
which are estimated at V5 @ V8 Billion spread over 1,;;; venture capital investments each year.
% typical profile of a private e&uity investor!
Is someone that prefers to invest within one day of travel6
Is very well educated
Tends to invest collectively within a group of other private e&uity investors
Nsually invests within the dollar range of V1;,;;; @ V5;;,;;;, averaging V23;,;;;
0akes one investment every two years
o )rivate e&uity investors have proven to be the single most important players in the
Page 28
-ntrepreneurial marketplace. )rivate capital investors fund thirty to forty times as many
-ntrepreneurial companies as the
D+T+ +N+,)(I( +ND
INTERPRET+TION
Page 29
+nalsis in this re#ort:
%n analysis is made on the responses received from 1;; sample investors. The ob"ective of the report is to
find out the investor s behavior on various investment avenues, to find out the needs of the current and future
investors.
The &uestionnaire contains various &uestions on the investor s financial e$perience, based on these
e$periences an analysis is made to find out a pattern in their investments. Based on these investment e$periences of
the 1;; sample investors an analysis is made and interpretations are drawn. Interpretations are made on a
rational basis, these Interpretations may be correct or may not be correct but care is taken to draw a valid
and %pprovable interpretation.
%nalysis is made only from the information collected through &uestionnaires no other .ata or
information is taken in to consideration for purpose of the analysis.
Page 30
C.1+nalsis of the (urve:
T+-,E 1: DE2O4R+PHIC( O' THE (+2P,E IN*E(TOR
P+R+2ETER NO: O' IN*E(TOR( PERCENT+4E
4ENDER
0%#- 59 59L
'-0%#- 42 42L
TOT+, 1;; 1;;L
+4E 4ROUP
B-#OW 2; ; ;L
B-TW--? 2; 3; 35 35L
B-TW--? 3; 4; 35 35L
%BOC- 4; 3; 3;L
TOT+, 1;; 1;;L
FU+,I'IC+TION
N?.-B DB%.N%T-S 8 8L
DB%.N%T-S 47 47L
)OST DB%.N%T-S 3: 3:L
OT*-BS 9 9L
TOT+, 1;; 1;;L
OCCUP+TION
S%#%BI-. 52 52L
BNSI?-SS 22 22L
)BO'-SSIO?%# 14 14L
*ONS- WI'- 11 11L
B-TIB-. 1 1L
TOT+, 1;; 1;;L
+NNU+, INCO2E
B-#OW Best. 2, ;;,;;; 38 38L
Best. 2, ;;,;;; @ 4, ;;,;;; 31 31L
Best. 4, ;;,;;; @ 7, ;;,;;; 19 19L
%BOC- Best, 7, ;;,;;; 14 14L
TOT+, 1;; 1;;L
Page 31
Inter#retation:
Table 1 above shows, that 59 =59L> of the investors are men and the rest 42=42L> are 'emales. Denerally males
bear the financial responsibility in Indian society, and therefore they *ave to make investment =and other>
decisions to fulfill the financial obligations. When it comes to age, it was found that 35L are young and
significant number under the age group of 2; 3;. 35L of them are in the age group of 3; to 4;. 3;L of them are
above 4; years of age. There are no investors below 2; years of age. ?early 52L of the investors belong to the
salaried class, 22L were business class, 14L were professionals, 11L were housewives and the rest were retired.
It was found that irrespective of annual income they earn all the investors interested in Investments since today s
inflated cost of living is forcing everyone to save for their future ?eeds, and invest those saved resources
efficiently. 3:=3:L> of the individual investors covered in the study are postgraduates( 47=47L> Investors are
graduates and 8=8L> of the investors are under@graduates, and 9=9L> investors %re categori+ed as others who
are either illiterates, had less education than under graduation Or who are more &ualified than post graduates.
It is interesting to note that most investors =,overed in the study> can be said to possess higher education
=Bachelor .egree and above>, and this factor will increase the reliability of conclusions drawn about the matters
under Investigation. 38=38L> of the investors are earning less than 2 lakhs per annum, 31=31L> investors are
-arning between 2 lakhs and 4 lakhs, 19=19L> investors are earning between 4 lakhs and 7 #akhs, 14=14L> investors
are earning more than 7 lakhs per annum. Since most of the investors are below 4 lakhs annual earnings, many of
them are non@risk takers
Page 32
C." OTHER CH+R+CTERI(TIC( O' (+2P,E IN*E(TOR
Ta/le 2.1 IN*E(TOR( 3I,,IN4 TO ,O(E PRINCIP+, +2OUNT
P+R+2ETER NO O' IN*E(TOR( PERCENT+4E
Hes 5 5
?o :5 :5
TOT%# 1;; 1;;
'igure No.1 =G O' IN*E(TOR( 3I,,IN4 TO ,O(E
PRINCIP+, +2OUNT>
Inter#retation: since many of the investors annual earnings are below 2 lakhs and 4 lakhs, many of them do
not take the risk of losing their principal investment amount. :5L of the Sample investors are not ready to
lose their principal investment amount. 5L are ready to take Bisk of losing their principal up to certain e$tent.
Page 33
Ta/le 2.2 TI2E PERIOD PRE'ERED TO IN*E(T
P+R+2ETER NO O' IN*E(TOR(
PERCENT+4E
S*OBT T-B0 1; 1;
0-.IN0 7; 7;
#O?D T-B0 3; 3;
TOT+, 1;; 1;;

'igure No.2 =G of TI2E PERIOD PRE'ERED TO IN*E(T>
Inter#retation: It/s interesting to know that many of the investors prefer to invest their money for medium
term i.e. from 1 @5 yrs., instead of short term or long term. 1;L preferred short Term, 7;L preferred medium
term, and 3;L preferred long term.
Page 34
Ta/le 2." 'REFUENC) O' 2ONITORIN4 THE IN*E(T2ENT
P+R+2ETER NO O' IN*E(TOR( PERCENT+4E
.%I#H 18 18
0O?T*#H 35 35
O,,%TIO?%##H 41 41
OT*-B 8 8
TOT+, 1;; 1;;
'igure No ." =G O' 'REFUENC) O' 2ONITORIN4 THE
IN*E(T2ENT>
Inter#retation: .ue to the busy life schedule, many of the investors are not able to spend time In monitoring
their investments, only 18L of the investors are monitoring their investments .aily, 35L are monitoring on a
monthly basis, 41L, the ma"ority investors are monitoring their Investments occasionally. 0any of them who
have invested in safe investment avenues do not bother about their investments, some of them forget about the
investments for many years.
Page 35
Ta/le 2.$ IN*E(T2ENT IN EFUIT) 2+R8ET
P+R+2ETER NO O' IN*E(TOR( PERCENT+4E
H-S 3; 3;
?O 8; 8;
TOT+, 1;; 1;;
Out of the total sample investors only 8;L of the investors invest in e&uity share market through their
.-0%T %<,, 3;L of the investors never invested in e&uity shares. The investors Who invest in e&uity share
market are asked another &uestion, what would they do if the stock 0arket falls immediately after their
investment, many of them replied that they would wait till The market increases instead of selling them at a
loss, very few answered that they would %verage the investment by buying some more shares.
Ta/le 2.% '+2I,) -UD4ET
P+R+2ETER NO O' IN*E(TOR( PERCENT+4E
H-S 83 83
?O 28 28
TOT+, 1;; 1;;
'igure No.$ =G of investor !a<es fa!il /udget>
83L of the sample investors had a monthly family budget for their daily e$penditure. 28L of the
investors replied they never thought of having a budget calculation, and few think of having a budget but never
implemented so far. 0any people with e$cess money never cared to make any family budgets.
Page 36
T+-,E 2.& IN*E(T2ENT T+R4ET
IN*E(TOR
P+R+2ETER NO O' IN*E(TOR( PERCENT+4E
H-S 49 49
?O 52 52
TOT+, 1;; 1;;
It/s interesting to know that almost same proportion of investors have different Thoughts, 49L of
the investors have an investment target every year, and 52L of the investors do not go for any targets for
investment. On personal &uestioning many of the investors who *ad an investment target every year are not
able to reach their targets due to contingent -$penses. 'ew investors invest regularly but never thought of
having a target every year.
Ta/le 2.C 'IN+NCI+, +D*I(OR
P+R+2ETER NO O' IN*E(TOR( PERCENT+4E
H-S 88 88
?O 23 23
TOT+,
1;; 1;;
'I4URE NO.% =G O' IN*E(TORE 8EEP
'IN+NCI+, +D*I(OR>
88L of the investors never had a financial advisor, they never approached an advisor for their financial needs,
the reason may be inade&uate income and e$cess e$penditure, and there would it be surplus money to worry
about6 23 L of the investors have financial advisors, who manage their investments.
Page 37
C.$ O/0e1tives of Invest!ent
Ta/le ".1 (+*IN4( O-.ECTI*E
P+R+2ETER *OTE( 3EI4HT( R+N8IN4
,*I#.B-?IS -.N,%TIO? 81 2: 1
B-TIB-0-?T 48 1: 3
*O0- )NB,*%S- 39 15 4
,*I#.B-?IS 0%BBI%D- 3; 12 5
*-%#T*,%B- 58 23 2
OT*-BS 5 2 7
TOT+, 249 1;;
'igure No.& =G of investor have saving o/0e1tive>
Table 3.1 shows the savings ob"ectives of the sample investors, investors are given Option to select
one or more savings ob"ectives, since there may be one or more answers, Weights are given for each
parameter bases on the votes given by the investors, the ma$imum Weightage represents many investors have
that as main ob"ective. Based on the weights ,alculated ranks are given in the order of ma$imum weightage
given by investors. 'irst rank is given to children s education, many investors feel that, investing money for the
future of the ,hilds education is very important than any other need. 0any of the investors are in the age
Droup of 2; 3; and 3; 4; as of now they are thinking of saving for their children s marriage. So children s
marriage is given last rank. %fter children s education investors are saving for their own health care. There is a
greater need for Indians to save for their health care who are living a mechanical life. Betirement and home purchase
are given subse&uent ranks after health care.
Page 38
Ta/le ".2 PURPO(E( -EHIND IN*E(T2ENT
P+R+2ETER *OTE( 3EI4HT( R+N8
W-%#T* ,B-%TIO? 38 22 4
T%K S%CI?D 43 25 3
-%B? B-TNB?S 45 28 1
'NTNB- -K)-?.ITNB- 44 27 2
TOT+, 17: 1;;
'igure No.C =G of investor have #ur#ose /ehind invest!ent>
%ll the investors have very common purposes for investing, they have more than one )urpose for
investing their money. Salaried people invest for ta$ savings, and for future -$penditure, business people
invest for the purpose of earning returns. %lmost all the investors have all the 4 purposes behind investing their
money.
Ta/le "." '+CTOR( CON(IDERIN4 -E'ORE IN*E(TIN4
Page 39
P+R+2ETER *OTE( 3EI4HT( R+N8IN4
S%'-TH O' )BI?,I)%# 7; 43 1
#OW BISG 35 25 2
*ID* B-TNB?S 28 1: 3
0%TNBITH )-BIO. 17 13 4
TOT+, 139 1;;
'igure No. D =G of 1ontain 'a1tors /efore Investing>
When the investors are asked about the factors considering before investment many of They have voted
for safety of principal and low risk. 'irst rank is given to safety of principal and 2 ?. to low risk. *ere there are
some contradicting results, some investors e$pect high returns at a very low risk, and this is not possible in
practical Indian investment avenues. Investment believes in a proved principle, higher the risk higher the
returns, lower the risk lower the Beturns. Investors need to know about this principle before investing.
Inde#endent *aria/les and De#endent *aria/les
There are total four inde#endent varia/les
Page 40
1. %ge group. 2. Occupation. 3. Jualification. 4. %nnual income
There 1an /e !an de#endent varia/les li<e
1. #evel of risk tolerance
2. )ercentage of income that can be invested
3. Time period that can be taken for investments
4. Savings ob"ectives
5. Investment preference.
These independent variables can be compared with any dependent variables for finding the Belations between
the parameters. In my analysis I have taken occupation category for comparison with dependent variable
Investment preference and age group comparing with the dependent variable level of risk Tolerance.
C.$ DE2O4R+PHIC( -+(ED ON OCCUP+TION
-elo; are the de!ogra#hi1s of the sa!#le investors /ased on the 1ategor o11u#ation.
Page 41
$.1 (+,+RIED
Page 42
P+R+2ETER NO: O' 9 (+,+RIED PERCENT+4E
+4E 4ROUP
B-#OW 2; ; ;
B-TW--? 2; @ 3; 22 42
B-TW--? 3; @ 4; 19 35
%BOC- 4;
12 23
TOT+, 52 1;;
FU+,I'IC+TION
N?.-B DB%.N%T-S ; ;
DB%.N%T-S
21 4;
)OST DB%.N%T-S 25 49
OT*-BS 7 12
TOT+, 52 1;;
+NNU+, INCO2E
B-#OW Best. 2, ;;,;;; 15 2:
Best. 2, ;;,;;; @ 4, ;;,;;; 15 2:
Best. 4, ;;,;;; @ 7, ;;,;;; 18 33
%BOC- Best, 7, ;;,;;; 5 1;
TOT+, 52 1;;
-elo; are the de!ogra#hi1s of the sa!#le investors /ased on the 1ategor o11u#ation.
$.2 -U(INE((
P+R+2ETER NO: O' 9 -U(INE(( PERCENT+4E
+4E 4ROUP
B-#OW 2; ; ;
B-TW--? 2; @ 3; 2 :
B-TW--? 3; @ 4; 1; 45
%BOC- 4; 1; 45
TOT+, 22 1;;
FU+,I'IC+TION
N?.-B DB%.N%T-S 5 23
DB%.N%T-S 11 5;
)OST DB%.N%T-S 7 28
OT*-BS ; ;
TOT+, 22 1;;
+NNU+, INCO2E
B-#OW Best. 2, ;;,;;; 11 5;
Page 43
Best. 2, ;;,;;; @ 4, ;;,;;; 5 23
Best. 4, ;;,;;; @ 7, ;;,;;; 1 5
%BOC- Best, 7, ;;,;;; 5 23
TOT+, 22 1;;
-elo; are the de!ogra#hi1s of the sa!#le investors /ased on the 1ategor o11u#ation.
$." PRO'E((ION+,
P+R+2ETER NO: O' 9 PRO'E((ION+, PERCENT+4E
+4E 4ROUP
B-#OW 2; ; ;
B-TW--? 2; @ 3; 9 :
B-TW--? 3; @ 4; 2 45
%BOC- 4; 4 45
TOT+, 14 1;;
FU+,I'IC+TION
N?.-B DB%.N%T-S ; ;
DB%.N%T-S 7 43
)OST DB%.N%T-S 7 43
OT*-BS 2 14
TOT+, 14 1;;
+NNU+, INCO2E
B-#OW Best. 2, ;;,;;; 2 14
Best. 2, ;;,;;; @ 4, ;;,;;; 9 58
Best. 4, ;;,;;; @ 7, ;;,;;; 1 8
%BOC- Best, 7, ;;,;;; 3 21
TOT+, 14 1;;
Page 44
+((U2PTION
%s a part of the analysis I assumed that preference for investment avenues is dependent on the Occupation of the
investor. *ence preferred investment avenue are derived from the .emographics of the sample investor
based on occupation.
-elo; are the de!ogra#hi1s of the sa!#le investors /ased on the 1ategor
o11u#ation.
$.$ HOU(E3I'E
P+R+2ETER NO: O' 9 HOU(E3I'E PERCENT+4E
+4E 4ROUP
B-#OW 2; ; ;
B-TW--? 2; @ 3; 4 37
B-TW--? 3; @ 4; 3 28
%BOC- 4; 4 37
TOT+, 11 1;;
FU+,I'IC+TION
N?.-B DB%.N%T-S 1 :
DB%.N%T-S 7 55
)OST DB%.N%T-S 2 19
OT*-BS 2 19
TOT+, 11 1;;
+NNU+, INCO2E
B-#OW Best. 2, ;;,;;; : 92
Best. 2, ;;,;;; @ 4, ;;,;;; 1 :
Best. 4, ;;,;;; @ 7, ;;,;;; ; ;
%BOC- Best, 7, ;;,;;; 1 :
TOT+, 11 1;;
Page 45
Since the investor has an option to invest in more than one Investment %venue, weights are given on the basis
of preference to investment avenues. The avenue which is given ma$imum Weightage by the investors is ranked
first. 'irst Ten ranks are given to the first ten preferred Investment avenues. 'irst preference is given to life
insurance, second to investing in gold, third to bank fi$ed deposits. Tenth preference is given to bank savings account.
C.% PRE'ERED IN*E(T2ENT +*ENUE( 'OR +,,
Ta/le %.1 Preferred invest!ent avenues for salaried
IN*E(T2ENT
+*ENUE( *OTE( 3EI4HT( R+N8
#I'- I?SNB%?,- 35 17 1
DO#. 25 12 2
B%?G 'IK-. .-)OSITS 24 11 3
0NTN%# 'N?.S 23 11 4
B-%# -ST%T- 23 11 5
)OST O''I,- S%CI?DS 2; : 7
))' 19 9 8
?S, 18 9 9
-JNITH S*%B-S 17 8 :
S%CI?DS %,,ON?T 14 8 1;
TOT+, 215 1;;
Ta/le %.2 Preferred invest!ent avenues for /usiness #eo#le
IN*E(T2ENT
+*ENUE( *OTE( 3EI4HT( R+N8
B%?G 'IK-. .-)OSITS 13 17 1
#I'- I?SNB%?,- 13 17 2
B-%# -ST%T- 11 14 3
0NTN%# 'N?.S 1; 12 4
DO#. 9 1; 5
-JNITH S*%B-S 8 : 7
,*IT 'N?.S 7 8 8
)OST O''I,- S%CI?DS 5 7 9
S%CI?DS %,,ON?T 4 5 :
Page 46
?S, 4 5 1;
TOT+, 91 1;;
Thinking of the business people is almost same to that of salaried people, both are Similar in preferring
insurance and bank fi$ed deposits, but given third preference to real -state. Dold is given 5
the
place here. #ast
place is given to national savings certificates.
Ta/le %." Preferred invest!ent avenues for #rofessionals
IN*E(T2ENT
+*ENUE( *OTE( 3EI4HT( R+N8
B%?G 'IK-. .-)OSITS 1; 1: 1
#I'- I?SNB%?,- 1; 19 2
DO#. 7 11 3
B-%# -ST%T- 7 11 4
)OST O''I,- S%CI?DS 5 : 5
S%CI?DS %,,ON?T 4 8 7
0NTN%# 'N?.S 4 8 8
))' 3 7 9
BO?.S 3 7 :
DOCT S-,NBITI-S 3 7 1;
TOT+, 54 1;;
There is no much difference in the preferences of professionals when compared to salaried and Business people.
)rofessionals does not prefer mutual funds =8
the
rank>, where salaried and Business people prefer at 4
the
place.
)rofessionals are more interested in post office savings Bather than mutual funds. %s business people
professionals also prefer bank fi$ed deposits in The first place, then life insurance. )rofessionals does not prefer
national saving certificates at %ll, eliminated it from the top 1;.
Page 47
Indian housewives love gold as much as themselves. *ousewives have given first rank to gold )ushing insurance
and bank fi$ed deposits to second and third place. *ouse wives gave least )reference to mutual funds. They are
more attracted to traditional investment avenues like Dold, real estate, post office savings and chit funds.

Ta/le %.% Preferred invest!ent avenues overall
IN*E(T2ENT
+*ENUE( *OTE( 3EI4HT( R+N8
#I'- I?SNB%?,- 78 18 1
B%?G 'IK-. .-)OSITS 55 14 2
DO#. 5; 13 3
B-%# -ST%T- 45 12 4
0NTN%# 'N?.S 39 1; 5
)OST O''I,- S%CI?DS 35 : 7
-JNITH S*%B-S 2: 9 8
S%CI?DS %,,ON?T 25 7 9
?S, 25 7 :
))' 22 5 1;
TOT+, 3:1 1;;
H)POTHE(I( 9 Increase in %ge decreases the Bisk tolerance level.
Page 48
Ta/le %.$ Preferred invest!ent avenues for house;ives
IN*E(T2ENT
+*ENUE( *OTE( 3EI4HT( R+N8
DO#. : 19 1
I?SNB%?,- : 19 2
B%?G 'IK-. .-)OSITS 9 17 3
B-%# -ST%T- 5 1; 4
)OST O''I,- S%CI?DS 5 1; 5
,*IT 'N?.S 4 9 7
-JNITH 4 9 8
S%CI?DS %,,ON?T 3 7 9
?S, 2 4 :
0NTN%# 'N?.S 1 2 1;
TOT+, 5; 1;;
*o! *o complies that the age has no effect with the risk tolerance but in reality age has direct
relationship with the risk so, here *1 is apply.
*1!*1 complies that there is direct relationship between age and risk
=*igher age low risk tolerance and lower the age high risk tolerance.>
Belation between %ge and risk tolerance
#evel of risk tolerance dependent on the age of the investor.
Bisk tolerance of an investor shows a negative relation to the age of that investor
#ower the age higher the risk capabilities, higher the age lower the risk capabilities.
#-C-# O' BISG TO#-B%?,- WIT* B-S)-,T TO %D- DBON)
'or the purpose of analysis investors are placed under three categories.
1. #ow risk category
2. 0edium risk
3. *igh risk
,lassification is done based on three factors
1. )ast investments of the investor.
2. Investor e$perience in investing =level of e$perience>.
3. Investor preference for investments.
'irst the total sample of 1;; is divided in to 3 age groups. Investors in each age
group are classified in to 3 risk categories based on the above factors.
Page 49
Ta/le &: 'inding relationshi# /et;een age grou# and level of ris< toleran1e
Ta/le &.1 ris< toleran1e of age grou# 27 "7
)%B%0-T-B 2; @ 3; %D- DBON)
,E*E, O' RI(8 ?O O' I?C-STOBS )-B,-?T%D-
#OW BISG 13 38
0-.IN0 BISG 18 4:
*ID* BISG 5 14
TOT+, 35 1;;
Ta/le &.2 ris< toleran1e of age grou# "7 9 $7
)%B%0-T-B 3; @ 4; %D- DBON)
,E*E, O' RI(8 ?O O' I?C-STOBS )-B,-?T%D-
#OW BISG 2; 58
0-.IN0 BISG 11 32
*ID* BISG 4 11
TOT+, 35 1;;
Ta/le &." ris< toleran1e of age grou# a/ove $7
)%B%0-T-B %BOC- 4; %D- DBON)
,E*E, O' RI(8 ?O O' I?C-STOBS )-B,-?T%D-
#OW BISG 21 8;
0-.IN0 BISG 7 2;
*ID* BISG 3 1;
TOT+, 3; 1;;
O-(ER*+TION(:
Page 50
O/servations fro! ta/le &.1H &.2H &."
'rom the table 7.1 we find that 4:L of Investors between the age group of 2;@3; came under medium
risk category, whereas the percentage of investors who came under medium Bisk in the age group of 3;@4; has
decreased to 32L. It still came down in the case of investors in the age group of 4; above, which is only 2;L.
We can see a decreasing trend in the Behavior of investors towards medium risk when their age increased.
38L of the investors in the age group of 2;@3; are in the low risk category, where as Investors under the
age group 3; @4;, 58L came under the low risk category, there is a large Increase in the investors who came
under low risk category in this age group. It has further Increased, 8;L of the investors in the age group
above 4; came under the low risk category.
We can see an increasing trend with respect to low risk category as the age increases. Same observations
are arrived at, when comparing the high risk category with respect To the age groups. %s the age
increases the level of risk tolerance is coming down. 14L came under the high risk category under the
age group 2;@3;, when it came to age group above 4; above only 1;L came under the high risk category.
'rom the above observations we can conclude that there is a strong inverse or negative Belationship between risk
tolerance and age group.
When Garl )earson s correlation coefficient is calculated, it is found to be @;.84 by which we can conclude that
there is a strong negative correlation between %ge and Bisk tolerance. %ge accounts for the ma"or differences in
risk taking decisions by the investors. The older an Investor, the better seemed his<her performance in
comparison to the younger ones. Over@ ,onfidence in their own investment ability among the youngsters
largely accounts for the -$cessive trading among younger investors leading to lower returns and this direct to
decline in the risk tolerance level.
Page 51
'INDIN4(
A
(U44E(TION(
'indings:
1. The study reveals that male investors dominate the investment market in India.
Page 52
2. 0ost of the investors possess higher education like graduation and above.
3. 0a"ority of the active and regular Investors belong to accountancy and related -mployment, non@
financial management and some other occupations are very few.
4. 0ost investors opt for two or more sources of information to make investment .ecisions.
5. 0ost of the investors discuss with their family and friends before making an investment .ecision.
7. )ercentage of income that they invest depend on their annual income, more the income more percentage of
income they invest.
8. The investor/s decisions are based on their own initiative.
9. The investment habit was noted in a ma"ority of the people who participated in the Study.
:. 0ost Investors prefer to park their funds in avenues like #ife insurance, '., Dold and Beal -state.
1;. 0ost of the investors get their information related to investment through electronic 0edia =TC> ne$t
to print media =?ewspaper< Business newspaper< 0aga+ines>
11. 0ost of the investors are financial illiterates.
12. Increase in age decrease the risk tolerance level.
13. Women are attracted towards investing gold than any other investment avenue.
Ris< toleran1e level and (uggestion of (uita/le Portfolio to the Investors
The role of uncertainty and the knowledge about the return on Investment %venue are important
components of any investment. The e$tent of an investor s ability to tolerate these Nncertainties of return is
referred as risk tolerance level of an investor =Schaefer, 1:89>. Bisk Tolerance tends to be sub"ective rather than
ob"ective.
Schaefer described the relation this way! two persons may very well agree on the Biskiness of a set
of gambles, but may nevertheless prefer different gambles, rank ordering them differently according to their
personal tolerance. There are two common methods of -stimating investor/s tolerance of risk. The first
method is a clear understanding of the investor and his<her history with investment securities. The second
method is to use a &uestionnaire designed to elicit feelings about risky assets and the comfort level of the
investor given certain ,hanges in the portfolio or certain investment scenarios.
The second method is used to know the risk tolerance level of the investors. Based on The responses to
the &uestionnaire, the cumulative scale is constructed and scores are assigned to each investor accordingly to
categori+e the respondents in to i.e. #ow, 0oderate and *igh Bisk tolerance level. The investors are divided
into 3 categories i.e., %, B and , depending on Their risk tolerance starting with #ow risk tolerance,
0oderate risk tolerance and *igh risk Tolerance.
Denerally investors with a low risk tolerance act differently with regard to risk than Individuals
with a high risk tolerance. Investor with a high level of risk tolerance would be ,omfortable with market
volatility, while low risk@tolerance individuals re&uire stability and are %verse to uncertainties. =0ac,rimmon
O Wehrung, 1:97>. Individuals with low levels of risk Tolerance re&uire lower chances of a loss, choose not
Page 53
to operate in unfamiliar situations and re&uire more information about the performance of an investment
=0ac,rimmon O Wehrung>.
Ta/le C (U44E(TED POR'O,IO CON(TRUCTION(
C.1 -+(ED ON +4E 4ROUP +ND ,E*E, O' RI(8
)%B%0-T-B #-C-# O' BISG @ )-B,-?T%D- O' I?,O0- TO B- %))OBTIO?-.
+4E 4ROUP #OW BISG 0-.IN0 BISG *ID* BISG TOT+,
B-TW--? 2; @ 3; 3;L 5;L 2;L 1;;L
B-TW--? 3; @ 4; 5;L 35L 15L 1;;L
%BOC- 4; 8;L 2;L 1;L 1;;L
Portfolio 1onstru1tion:
(te# 1: Identify the age group of the investor( check in which age group he comes under. Suggest suitable
portfolio from the above table. -$ample! %n investor of age 37 working in public sector ,ompany has approached
you to invest *is 9 lakhs of money in a suitable investment.
%dvice! the investor comes under the age group 3; 4;.
*is suitable portfolio will be
1. 5;L invest in low risk investment avenues.
2. 35L invest in medium risk avenues.
3. 15L invest in high risk avenues.
(te# 2: investment preference made from the table 5.5 or based on his occupation. Since he comes
under the occupation salaried he can choose the preferred investment %venues from table 5.1
Page 54
(U22+R)
A
CONC,U(ION
Page 55
(u!!ar
This report is a reflection of the behavior of various categories of investors. Selection of a
perfect investment avenue is a difficult task to any investor. %n effort is made to Identify the tastes
and preferences of a sample of investors selected randomly out of a large )opulation. .espite of
many limitations to the study I was successful in identifying some Investment patterns, there
is some commonness in these investors and many of them responded positively to the study.
This report concentrated in identifying the needs of current and future investors, Investors
preference towards various investment avenues are identified based on their Occupation. Investors risk in
selecting a particular avenue is dependent on the age of that Investor.
Con1lusion
This study confirms the earlier findings with regard to the relationship between %ge and Bisk tolerance
level of individual investors. The )resent study has important implications for Investment managers as it has
come out with certain interesting facets of an individual Investor. The individual investor still prefers to
invest in financial products which give risk free Beturns. This confirms that Indian investors even if they are
of high income, well educated, Salaried, independent are conservative investors preferred to play safe. The
investment product .esigners can design products which can cater to the investors who are low risk tolerant and
Nse TC as a marketing media as they seem to spend long time watching TCs.
Page 56
-i/liogra#h
-OO8(
1. The 0indful Investor, by 0aria Don+ale+ and Draham Baryon. Nnderstanding
Indian Investors, by Fawaharlal %ll.
2. Security %nalysis and )ortfolio 0anagement by )unithavathi )andian.
3. Investment %nalysis and )ortfolio 0anagement, by )rasanna ,handra.
RE(E+RCH P+PER(
%n -mpirical study on Indian individual investors/ behavior, by Syed Tabassum Sultana.
3E- (ITE(
www.ta$4India.com
www.economictimes.Indiatimes.com
www.business@standard.com
www.Indiamoney.com
www.moneymanagementideas.com
www.savingwala.com
Page 57
Fuestionnaire
1. +re ou a;are of the follo;ing invest!ent avenuesI (Tick which ever applicable in the boxes).
(afe:,o; Ris< Invest!ent +venues:
Savings %ccount.
Bank 'i$ed .eposits.
)ublic provident 'und.
?ational Savings ,ertificates.
)ost Office Savings.
Dovernment Securities.
2oderate Ris< Invest!ent +venues:
0utual 'unds.
#ife Insurance.
.ebentures.
Bonds.
High Ris< Invest!ent +venues:
-&uity Share 0arket.
,ommodity 0arket.
'OB-K 0arket.
Traditional Invest!ent +venues:
Beal -state =property>.
Dold<Silver.
,hit 'unds.
E!erging Invest!ent +venues:
Cirtual Beal -state.
*edge 'unds.
)rivate -&uity Investments.
%rt and )assion.
2. 3hat do ou thin< are the /est o#tions for investing our !oneI (Choose from above list)
(Rank in the order of preference)
1.WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW 2.WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
3.WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW4.WW
5.WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW7.
". Reasons for sele1ting these o#tions:
1WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
2WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
Page 58
$. In the #astH ou have invested !ostl in (write as many as applicable)
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWW
%. In ;hi1h se1tor do ou #refer to invest our !oneI
)rivate Sector Dovernment Sector )ublic Sector 'oreign Sector
&. 3hat are the i!#ortant fa1tors guiding our invest!ent de1isionsI =ReturnH safet of #rin1i#alH
Diversifi1ationH #rogressive valuesH et1.>I
C. 3hat are our savings o/0e1tivesI
,hildren s -ducation Betirement *ome )urchase ,hildren s 0arriage
*ealthcare othersWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
D. 3hat is our invest!ent o/0e1tiveI
Income and ,apital )reservation #ong@term Drowth
Drowth and Income short@term Drowth
OthersWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
W
E. 3hat is the #ur#ose /ehind invest!entI
Wealth ,reation Ta$ Saving -arn Beturns 'uture -$penses
OthersWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
17. Have ou set aside funds s#e1ifi1all for the edu1ation and !arriage of our 1hildrenI
If esH #lease give a!ounts and ho; the funds are held
-ducation! %mount Best.WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW invested in WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
0arriage! %mount Best.WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW invested in WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
11. Do ou have a for!al /udget for fa!il e@#enditureI
Hes ?o
12. Do ou have a savings and invest!ent target a!ount ou ai! for ea1h earI
Hes if yes: AmountWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
?o
Page 59
1". +t ;hi1h rate do ou ;ant our invest!ent to gro;I
Steadily %t an %verage Bate 'ast
1$. 3hi1h fa1tor do ou 1onsider /efore investingI
Safety of )rincipal #ow Bisk *igh Beturns 0aturity )eriod
1%. Do ou invest our !one in share !ar<etI (Throuh a !"#AT A$C)
Hes ?o
If es: I!agine that sto1< !ar<et dro#s after ou invest in it then ;hat ;ill ou doI
Withdraw your money Wait to increase Invest more in it
1&. Ho; often do ou !onitor our invest!entI
.aily 0onthly Occasionally
1C. 3hat #er1entage of our in1o!e do ou investI
;@15L 15@3;L 3;@5;L
1D. 3hat is the ti!e #eriod ou #refer to investI
Short@term =;@1yrs> 0edium@term =1@5yrs> #ong@term =X5yrs>
1E. Can ou ta<e the ris< of losing our #rin1i#al invest!ent a!ountI
Hes ?o If yes! What percentage WWWWWWWWWWWWWWWWWWWWWWWW
27. 3hat is our sour1e of invest!ent advi1eI
?ewspapers ?ews ,hannels 'amily or 'riends
Books Internet 0aga+ines
%dvisors ,ertified 0arket )rofessional<'inancial )lanners
Page 60
Personal Details
=Personal details are <e#t highl 1onfidentialB these details ;ill not /e revealed to an third #art>
Na!e: WWWWWWWW =Optional> WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW Designation!
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
Organi6ation! WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
+ge 4rou#:
Below 2; between 2;@3; between 3;@4; %bove 4;
Fualifi1ation:
Nnder Draduate Draduate )ost Draduate
Other! WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
O11u#ation =;hat 1ategor do ou 1o!e under>:
Salaried Business *ousewife
Student )rofessional Betired
Other! WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
+nnual in1o!e:
Below Best. 2, ;;,;;; Best. 2, ;;,;;;@ Best. 4, ;;,;;;
Best. 4, ;;,;;;@Bs 7, ;;,;;; above Best. 7, ;;,;;;
Do ou have a finan1ial advisorI
Hes ?o
3hat /est des1ri/es our invest!ent e@#erien1eI
-eginning (no investment experience)
2oderate (comfortable with fixed deposits% chit funds% post office)
8no;ledgea/le (has bouht or sold individual shares of stock or bonds)
E@#erien1ed (fre&uently trade in stocks% commodities% options and futures)
Date:
Signature: (Optional>