A STUDY ON INVESTORS PREFERENCE

ON VARIOUS INVESTMENT AVENUES

WITH SPECIAL REFERENCE TO
RAMAPURAM GRAMAPANCHAYATH
PROJECT REPORT SUBMITTED TO MAHATMA
GANDHI UNIVERSITY
IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE AWARD OF THE
DEGREE OF

BACHELOR OF COMMERCE
Submitted By

JEFFIN JOSEPH
Reg. No. 11139132

JEFFY AUGUSTINE
Reg. No. - 11139133

JINIL JOSEPH
Reg. No. - 11139135
Under the guidance of
Ms. KALA S, M.Com
Lecturer-Department of Commerce

Department of Commerce
MAR AUGUSTHINOSE COLLEGE
(Affiliated to Mahatma Gandhi University)

Ramapuram-686576
March 2014

MAR AUGUSTHINOSE COLLEGE

RAMAPURAM, KERALA - 686576

CERTIFICATE
This is to certify that the project work entitled
A STUDY ON INVESTORS PREFERENCE ON
VARIOUS
INVESTMENT
AVENUES
WITH
SPECIAL
REFERENCE
TO
RAMAPURAM
GRAMA PANCHAYATH is the bonafide work
done by JEFFIN JOSEPH, JEFFY AUGUSTINE AND
JINIL JOSEPH under my guidance, in partial
fulfillment of their sixth semester requirements for
the award of the degree Bachelor of Commerce of
Mahatma Gandhi University.
Countersigned by,
Mr. Jose Joseph
Ms. Kala S
Head of the Department
Project Guide
of Commerce
Department of commerce

External valuation conducted on:

External Examiner:
Place:
Date:

ACKNOWLEDGEMENT
It is a great pleasure to express our
thanks, while presenting this project report to all
those who helped us in completing this study
successfully. First of all, we thank God Almighty
for having showered all the blessings to complete
the work successfully.
We proudly utilize the privilege to express
our thanks and sincere gratitude to Rev. Dr.
George Njarakkunnel Manager, Dr. Joseph V. J
Principal,

Rev.

Fr.

Joseph

Alancheril

Vice

Principal, and Mr. Jose Joseph Head of the

Department

of

Commerce,

Mar

Augusthinose

College Ramapuram.
We also express our deep sense of
gratitude and indebtedness to Ms. Kala S,

Lecturer, Department of Commerce our project

guide, for her valuable guidance, suggestions and
encouragements which helped us to bring this
project completed.
Finally we extend our immense gratitude
to our parents and friends for their help and cooperation for the successful completion of this
project.

Place: Ramapuram
JEFFIN JOSEPH
Date:
JEFFY AUGUSTINE
JINIL JOSEPH

DECLARATION

We, JEFFIN JOSEPH, JEFFY AUGUSTINE and

JINIL

JOSEPH

students

of

Mar.

Augusthinose

college, Ramapuram hereby declare that the

project report entitled A Study on Investors

preference on various investment avenues
with

special

references

to

Ramapuram

Gramapanchayath. is a record of bonafide

project work carried out under the supervision and
guidance of Ms. Kala S, Lecturer, Department of
Commerce,

Mar.

Augusthinose

college,

Ramapuram.
This project has not been previously formed
the basis for the award of any other degree or
diploma of any other university or institution.

Place: Ramapuram
JEFFIN JOSEPH
Date:
JEFFY AUGUSTINE

JINIL JOSEPH

CONTENTS
TITLE

No.

Pag
e
No.

Acknowledgement
List of Tables
List of Figures
1.

Introduction

2.

Review of Literature

3.

Analysis of Primary Data

23-54

4.

Findings, Suggestions &

Conclusion

55-59

Bibliography
Appendix

1-8
9-22

LIST OF TABLES
Tabl
TITLE
e
No.
Table Table showing classification of
3.1 respondents on the basis of age
Table
3.2
Table
3.3

Table showing classification of

respondents on the basis of gender
Table showing classification of
respondents on the basis of education

Table
3.4
Table
3.5

Page
No.
24
26
27

Table showing classification of

respondents on the basis of occupation
Table showing classification of
respondents on the basis of monthly
income
Table Table showing classification of
3.6 respondents on the basis of
marital
status
Table Table showing the number of respondents
3.7 having savings

28

Table Table showing the Number of respondents

3.8 having awareness about investment
avenues
Table Table showing the respondents

33

30
31
32

34

3.9
Table
3.10
A
Table
3.10
B
Table
3.11

preference for their savings

Table showing whether the respondents
are satisfied with their investment

36

Table showing the level of satisfaction of

respondents

37

Table showing investment motive of

respondents

38

Table Table showing investment objective of

3.12 respondents

39

Table
3.13
A
Table
3.13
B
Table
3.14

Table showing whether respondents get a

regular income or not

40

Table showing the level of satisfaction

from regular return on investment

41

Table showing respondents preference

regarding profitable investment avenue

42

Table Table showing respondents opinion

3.15 regarding profitable and safe investment
method
Table Table showing respondents opinion
3.16 regarding risk taking in investment

44

Table
3.17
A
Table
3.17
B
Table
3.18

Table showing respondents opinion about

changing their current investment to a
new investment avenue
Table showing respondents preference for
new investment avenue

46

Table showing respondents preference

regarding time period of investment

49

45

48

Table Table showing respondents opinion about

3.19 to what extent they want to take risk in
investment
Table Table showing grading of investment
3.20 avenues on the basis of profitability

51

Table Table showing grading of investment

3.21 avenues on the basis of risk

53

52

LIST OF FIGURES
Figure
No.
Figure
3.1
Figure
3.2
Figure
3.3
Figure
3.4
Figure
3.5
Figure
3.6

TITLE
Figure showing Age wise classification of
respondents
Figure showing Gender wise
classification of respondents
Figure showing Educational qualification
wise classification of respondents
Figure showing occupation wise
classification of respondents
Figure showing Income wise
classification of respondents
Figure showing classification on the
basis of marital status of respondents

Page
No.
25
26
27
29
30
31

Figure
3.7
Figure
3.8

Figure showing the number of

respondents having savings
Figure showing the number of
respondents having awareness about
investment avenues
Figure Figure showing the respondents
3.9 preference regarding their savings
Figure Figure showing whether the respondent
3.10 A is satisfied in their investment
Figure Figure showing the level of satisfaction
3.10 B of respondents
Figure Figure showing investment motive of
3.11 respondents

32

Figure
3.12

39

Figure
3.13 A
Figure
3.13 B
Figure
3.14
Figure
3.15

Figure showing investment objective of

respondents

Figure showing whether respondent get

a regular income or not
Figure showing the level of satisfaction
from regular return on investment
Figure showing respondents preference
regarding profitable investment avenue
Figure showing respondents opinion
regarding profitable and safe investment
method
Figure Figure showing respondents opinion
3.16 regarding risk taking in
investment
Figure Figure showing respondents opinion
3.17 A about changing their current investment
to a new investment avenue
Figure Figure showing respondents preference
3.17 B for new investment avenue
Figure Figure showing respondents preference
3.18 regarding time period of investment
Figure Figure showing respondents opinion
3.19 about to what extent they want to take

33
35
36
37
38

40
41
43
44
45
47
48
50
51

risk in investment

CHAPTER 1
INTERODUCION

CHAPTER 1

INTRODUCTION
Savings are generated when people and

institutions restrict or abstain from current

spending, for the sake of future needs. Such
savings are deployed to suitable avenues based
on various considerations like safety, profitability,
liquidity, etc. This process of deploying savings in
different forms leads to various types of
investments.
Thus investment means employment of funds
with the aim of achieving additional income or
growth in value. In financial parlance investment
means purchase of some financial asset that yield
a return, which is proportionate to risk assumed
over some future period of time. Essentially
investment involves waiting for a reward. In other
words investment is allocation of monetary
resources to assets that are expected to yield
some gain or positive return over a given period of
time.
Investment is the allocation of monetary
resources to asset that are expected to yield some
gain or positive return over a given period of time.
From the point of view of people who invest their
funds, they are the suppliers of capital and in
persons funds to derive future income in the form
of the appreciation of the value of their principal
capital. To the financial investor, it is not important
whether money is invested for a productive use or
for the purchase of second hand instruments such
as existing shares and stocks listed on the stock
exchanges. Most of the investments are
considered to be transfers of financial assets from
one person to another.
The nature of investment in the financial
sense differs from its use in the economic sense.
To the economist, investment means the net
addition to the economys capital stock which
consists of goods and services that are used in the
production of other goods and services. In this

context, the term investment, therefore, implies

the formation of new and productive capital in the
form of new construction, new producers durable
equipment such as plant and equipment.
Inventories and human capital are included in the
economists definition of investment.
Keeping
money
idle
is
unproductive.
Moreover, money gets its value reduced over a
period of time due to inflation. Therefore surplus
funds, if any, must be deployed in a most fruitful
way to make it productive and also to beat the
erosion in value due to inflation. There are
different ways in which one can deploy the savings
or surplus funds. However, selecting the best
investment alternative is not an easy task. One
has to be aware of all the alternatives, to choose
the best one based on his risk-return preferences.
Modern financial markets offer a variety of
investment avenues, apart from the traditional
ones. Following are the major financial investment
avenues available to an ordinary investor:
1. Corporate securities
2. Government bonds
3. Post Office savings schemes
4. Provident funds
5. Mutual funds
6. Bank deposits
7. Life insurance
8. Real estate
9. Others
SIGNIFICANCE OF THE STUDY

There are number of investment options

before an investor and each investors preference
is different according to his risk taking capacity
and expected return. To know about investment
avenues and investors preference it is essential to
find out a profitable investment option among
various investment avenues.
Savings are very essential component for
people without which there cannot be any proper
planning of our expenditure. Only if money is
invested properly, they can get their expected
income or returns. This study is conducted to find
out proper investment avenue among the people
who wish to save their money in appropriate
ventures.
PROFILE OF RAMAPURAM GRAMA PUNCHAYATH
Ramapuram is a beautiful village with an
illustrious past and a rich heritage. It is a special
grade Panchayath located at the North East side of
Kottayam District, bordering Ernakulam and Idukki
Districts. It spreads over an area of 54.54sq.km,
Sheltering 33000 people which amount to 0.14
percent of the total area and 0.11 percent of the
population of the state of Kerala. Ramapuram is
under Pala Assembly Constituency and Kottayam
Parliament Division. The area comes under
Uzhavoor Development Block and consists of all
the areas of Ramapuram and Vellilappilly Villages
in Meenachil Taluk. The Block Panchayath includes
whole of Ramapuram, Pazhamala and certain
parts
of
Uzhavoor
Division.
The
District
Panchayath Division is Ramapuram. It has an area
of 12 Sq.km. each from Nellappara, the boundary
of Idukki District in the North to Chakkampuzha in
the South and from Anthyalam in the East to
Parathod in the West. There are 18 Panchayath

wards and 36 election booths.

STATEMENT OF THE PROBLEM

Investment avenues are plenty, some are
simple and some are complex. Some are direct
and some are indirect. Investment suitable for one
person may not be suitable for another person.
Normally investors will make a detailed analysis
about these investment avenues for comparing
risk and return at these investment alternatives.
This study is conducted to analyze the various
investment avenues, find out investors preference,
risk taking capacity, and perception regarding
return from investment among investors in
Ramapuram Gramapanchayath.
The problem under study is stated as A
Study on Investors preference on various
investment avenues with special reference
to Ramapuram Gramapanchayath.

OBJECTIVES OF THE STUDY

1. To know about various investment avenues.

2. To study preference of the investors.

3. To study the risk taking capacity of investors.
4. To know about the investors motive behind
investment.
5. To know investors perception regarding return
from investment.
6. To find out which investment avenue is
mostly preferred by the investors.

PERIOD OF STUDY
Period of study is from December 2013 to
March 2014
RESEARCH METHODOLOGY
Primary data
The study is mainly based on primary data.
Primary
data
are
collected through questionnaire and personal
interviews.
Secondary data
Secondary data was used to supplement and
support the findings as well as to develop
theoretical framework of the study. Secondary
data are collected from published reports, books,
dailies and periodicals.
Sample size
The whole number of sample unit on which survey
is conducted is known as sample size. It consists
of 50 respondents.
Sample unit
A single section selected to research and
gather statistics of the whole is called sample unit.

In this study, an investor in the Ramapuram

Gramapanchayath is a sample unit.
Sampling method
For the purpose of the study, simple random
sampling method was adopted.
TOOLS FOR ANALYSIS
All data collected are tabulated, so as to
facilitate analysis. Collected data have been
analyzed with the help of simple statistical tools
like percentage, tables, graphs, etc.
Percentage
In mathematics, a percentage is a number or ratio
expressed as a fraction of 100. It is often denoted using the
percent sign, %.
Table
A table presents the data as table of rows and columns,
and is used to see details and compare values.
Graph
A graph is a visual way to make comparison between two
or more sets of information.
LIMITATIONS OF THE STUDY
1. The study was based on the opinion given
by the respondents. The attitude of the
respondents may likely to change according
to their views.
2. Limited number of respondents is another
limitation.
3. Time consuming process.
CHAPTER SCHEME
Chapter 1- Introduction
This chapter includes the statement of the

problem, significance of the study, objectives of

the study, period of study, data and methodology,
tools of analysis and limitations of the study.
Chapter 2- Review of literature
It includes meaning and definition of
investment,
factors
influencing
investment
decisions, importance of investment, investment
objectives and investment avenues.
Chapter 3- Analysis of data
This chapter includes the analysis of primary
data which includes analysis and interpretation of
data where data is being presented in tables and
figures.
Chapter 4- Findings, suggestions and conclusions
This chapter includes findings, suggestions
and conclusion.

CHAPTER 2
REVIEW OF LITERATURE

CHAPTER 2

REVIEW OF LITERATURE
MEANING OF INVESTMENT
Investment is a conscious act of an individual or any entity that
involves deployment of money in securities or assets issued by
any financial institution with a view to obtain the target returns
over a specified period of time. Investment avenues are the
sectors in which people prefer for their investment.
DEFINITIONS
Purchase of a financial asset that produces a
yield that is proportionate to the risk assumed
over some future investment period. F.Amling.
Investment is sacrifice of certain present value

for some future investment period. Sharpe

FACTORS INFLUENCING INVESTMENT
DECISIONS
The following are the important factors normally influencing
the investment decisions.
1. Return
An investment characterized by the expectation of return.
Investment is always made with an objective of earning a
return. The amount of return from an investment depends on
the maturity period and several other factors. The return may be
earned in the form of dividend or interest or in the form of
capital appreciation.
2. Risk
Deviation of actual returns from anticipated returns is
something which one cannot precisely predict in all cases. This
is due to the risk associated with any investment opportunity.
Broadly speaking, an investment decision is a trade-off between
risk and return. Risk varies from investment to investment. In
other words, higher the risk more is the return.
3. Safety
The safety of investment refers to the certainty of getting back
the invested funds. The principal amount invested should be
received back without loss of value and delay.
4. Liquidity
Liquidity means easy convertibility of investment into money.
Some investments are marketable while some others are not.
Easy marketability ensures liquidity which is considered to be a
desirable feature of a good investment.
5. Tax implications
Some investments provide income tax benefits and some others
do not. The tax benefits available to investments can be of three
types. Certain investments get initial tax benefits at the time of
investment. Some others enjoy annual tax benefits on returns
during the life time of the investment. In certain cases, there is
terminal tax benefit available at the end of the duration of the
investment.
IMPORTANCE OF INVESTMENT
Investments are both usual and important. In the context of
present day conditions some factors that have made investment

decisions increasingly important are:

1. Interest Rate
Another aspect which is necessary for a investment plan is the
level of interest rates. Interest rates vary between one
investment and another. These may vary between risky and safe
investments; they may also differ due to different benefit
schemes offered by the investments. These aspects must be
considered before actually allocating any amount.
2. Increasing rate of Taxation
Taxation is the one of the crucial factors in any country, which
introduces an element of compulsion in persons savings. There
are various from of savings outlets in our county in the form of
investment which help in bringing down the tax level of
offering deductions in personal income.
3. Longer Life Expectancy
Investment decisions have become significant as most people
retire between the age of 55 and 60.
4. Income
Another reason why investment decisions have assumed
importance is the general increases in rise to increases in the
number of both male and female work force. More incomes and
more avenues of investments have led to the ability and
willingness of working people to save and inset their funds.
5. Investment Channel
The growth and development of the country leading to greater
economic activity has led to the introduction of a vast array of
investment outlets.
6. Inflation
Due to inflation purchasing power of people will reduce in
order to reduce the effect of inflation we are investing our
savings in more profitable. The investor will try and search an
outlet which will give him a high rate of return in the form of
interest to cover any decrease due to inflation.

INVESTMENT OBJECTIVES
Though people make investment for a variety of purposes, all
of them have a common objective of minimizing the risk
involved in the investment and maximizing the return. But still
different investors may have different objectives behind their
investment decisions. Some such specific investment objectives
are mentioned below:
1. Safety
While no investment option is completely
safe, there are products that are preferred by
investors who are risk averse. Some individuals
invest with an objective of keeping their money
safe, irrespective of the rate of return they receive
on their capital. Such near-safe products include
fixed deposits, savings accounts, government
bonds, etc.
2. Growth
While safety is important objectives for many
investors, a majority of them invest to receive
capital gains, which means that they want the
invested amount to grow. There are several
options in the market that offer this benefit. These
include stocks, mutual funds, gold, property,
commodities, etc. It is important to note that
capital gains attract taxes, the percentage of
which varies according to the number of years of
investment.
3. Income
Some individuals invest with the objective of
generating
a
second
source
of
income.
Consequently, they invest in products that offer
returns regularly like bank fixed deposits,
corporate and government bonds, etc.

4. Tax exemptions
Some people invest their money in various
financial products solely for reducing their tax
liability. Some products offer tax exemptions while
many offer tax benefits on long-term profits.
5. Liquidity
Many investment options are not liquid. This
means they cannot be sold and converted into
cash instantly. However, some people prefer
investing in options that can be used during
emergencies. Such liquid instruments include
stock, money market instruments and exchangetraded funds, to name a few.

INVESTMENT AVENUES
In the modern financial system there are so many investment
avenues to choose from today in financial market and it has
become difficult for anyone to decide about these avenues.
Some of these investment avenues offer attractive returns but
with high risks and some offer lower returns with very low risk.
An overall analysis of these investment avenues with risk and
return trade is presented in this article. These investment
avenues are:
10.Corporate securities
11.Government bonds
12.Post Office savings schemes

13.Provident funds
14.Mutual funds
15.Bank deposits
16.Life insurance
17.Real estate
18.Others
A brief description about the different investment avenues is
given below.
1. CORPORATE SECURITIES
The instruments through which companies collect funds from
the public for meeting their long term financial requirements
are called corporate securities. Such securities, which are also
known as industrial securities, can be broadly classified into
two categories as follows.
a) Ownership Securities
The securities allotted to those who contribute the share capital
of the company are called ownership securities. A share
represents the smallest unit of ownership instrument and hence
shareholders are the real owners of the company. Ownership
securities may be either equity shares or preference shares.
b) Creditorship Securities
Those who contribute funds to the company in the form of long
term debt get creditorship securities of the company. The holder
of creditorship securities are lenders of funds to the company.
Debentures and bonds are the common form of debt capital.

2. GOVERNMENT SECURITIES
As in the case of companies collecting funds from debenture

holders, governments borrow from public by issuing bonds.

Such securities are absolutely risk-free, since they are offered
by the government, but the rate of return will be low. The
following are the different types of bonds issued by the
government in the securities market.
a) Fixed Rate Bonds
These are bonds on which the coupon rate is fixed for the entire
life of the bond.
b) Floating Rate Bonds
These are securities which do not have a fixed coupon rate. The
coupon rate is reset at regular intervals, based on interest rate
fluctuations.
c) Zero Coupon Bonds
These are bonds with no coupon payments. Like Treasury bills
they are issued at a discount to the face value.
d) Capital Indexed Bonds
These are bonds whose principal is linked to an accepted index
of inflation with a view to protect the holder from the impact of
inflation.
e) Bonds with Call or Put Option
Bonds can also be issued with features of options where the
issuer reserves an option to buy-back them or the investor shall
have the option to sell to the issuer, during the currency of the
bond.
3. POST OFFICE SAVING SCHEMES
Post office savings schemes provides a safe or risk free and
attractive investment option for the small investors. The
following are the major saving schemes offered by the Indian
Postal Department.

a) Savings Bank Account

The post office savings bank is the oldest and one of the largest
banking systems in the country, serving the investment needs of
both urban and rural people. Tax benefit is another important
attraction because interest on post office savings bank is
absolutely tax free.
b) Recurring Deposit account
This is a five year monthly investment option which offers a
high annual interest. Deposits of small denominations are
possible without any maximum limit. One withdrawal up to
50% of the balance is allowed after one year.
c) Time Deposit
This is a fixed deposit option for periods ranging from one to
five years with facility to draw yearly interest offered at
compounded rates. The interest rate ranges from 8.2% for one
year deposit to 8.5% for that of five years. The minimum
amount of deposit is Rs 200 and multiples thereof.
d) Monthly income scheme
The MIS is a safe and sure way to get regular monthly income.
This scheme offers an opportunity for fixed investment for five
years with monthly interest payment facility. It is especially
suitable for retired employees, senior citizens, etc. The rate of
interest is 8.5%.
e) Public Provident Fund
This is an investment option for both salaried as well as self
employed classes. PPF offers intermittent deposits for a period
of 15 years. Interest rate is 8.8% per annum. Interest is
completely tax-free.
f) Senior Citizens savings Scheme
This is a new avenue of investment and return for senior
citizens who attained age of 60 years or above on the date of

opening of the account. Interest at the rate of 9.3% per annum

from the date of deposit on quarterly basis is available.
4. PROVIDENT FUNDS
In order to encourage savings for social security of employees
the government has set up various kinds of provident funds.
Employees are required to contribute fixed percentage of their
salary towards these funds and in many cases employer also
contribute. The whole contributions as well as interest thereon
are credited to the account of the employee.
a) Statutory Provident Fund
It was started in the year 1925 through Provident Fund Act
1925 and is the oldest type of fund. This fund was started with
a view of promoting saving among government employees and
is maintained by government or semi-government employees
like government departments, schools and colleges, universities
and other similar institutions.
b) Recognized Provident Fund
A provident fund recognised by the commissioner of Income
Tax is called recognized provident fund. In this case employers
contribution up to 12% of the salary of the employee and
interest credited to the fund up to the prescribed rate are not
taxable.
c) Unrecognised Provident Fund
A provident fund not recognised by the
Commissioner of Income Tax is called
unrecognized provident fund. Deposit in
unrecognised PF is also a saving. However such
contributions do not get any tax benefits at all.
5. MUTUAL FUNDS
It is an investment scheme by which money collected from
large number of investors is invested in stocks, bonds, short
term money market instruments and other securities. In other

words, mutual fund is a mechanism that pools the small savings

of a large number of investors, which is invested in a variety of
financial products. The surplus resulting from such investment
is shared by the investors proportionately.
Based on the structure of operations, mutual funds
are classified as open ended schemes and close
ended schemes.
a) Open Ended schemes
An open ended scheme is one which allows the investor to
enter into the mutual fund and exist from it at anytime. Open
ended schemes are those schemes where investors can buy new
units of the fund or redeem the existing units at NAV related
prices.
b) Close Ended schemes
A close ended scheme is one which has a fixed corpus,
stipulated maturity period ranging from 2 to 15 years and the
investors freedom for entry and exit is restricted.
Based on investment objective, mutual funds can
be classified as follows.
a) Growth funds
The main objective of growth funds is capital appreciation.
Therefore growth funds invest most of the corpus in equity
shares with high growth potentials and offers good returns to
the unit holders in long term. Because of this reason growth
funds are also called as equity funds.
b) Income funds
Income funds focus mainly on regular income to investors.
Therefore the corpus of the income fund is primarily invested
in assumed income bearing instruments like bonds, debentures,
government securities, commercial paper, etc.
c) Balanced funds
The aim of balanced fund is to provide both capital
appreciation and regular income. Funds in these schemes divide
their corpus in suitable proportions and invest in equity shares
and fixed interest bearing instruments.

d) Money Market Mutual funds

MMMFs which are also known as cash funds first appeared in
the US in 1972. These are open ended mutual funds that
specialise in investing in safer short term money market
instruments like call money, Treasury bill, commercial paper,
etc.
Special schemes of mutual funds
a) Tax saving schemes
b) Equity linked saving schemes
c) Gilt funds
d) Load and No-load funds
e) Index funds
f) Sectoral funds
g) Funds of funds

6. BANK DEPOSITS
The most important function of a bank is to accept deposits
from the public. Through this function banks pools together the
scattered savings of the society for being used for productive
purposes. The various types of deposits accepted by banks form
a good avenue of investment to customers. The different types
of deposits accepted by a commercial bank are:
a) Fixed or Time deposits
In the case of fixed deposits, money is deposited for a fixed
period of time and can be withdrawn only after the expiry of
the period. The rate of interest on this type of deposit is higher
as compared to other type of deposits.
b) Current or Demand deposits

Current deposits are those deposits into which money can be

deposited any number of times and from which money can be
withdrawn as many times as the depositor wants. These
accounts are usually maintained by traders and business man
who have to make a number of payments on a single day.
c) Savings deposits
In the case of savings deposits, customers can deposit any
amount of money at any number of times. But certain
restrictions are imposed on the number of withdrawals.
Currently interest is calculated on the daily balance available in
the account.
d) Recurring deposits
In this case, a fixed sum of money is invested every month for a
predetermined period. The rate of interest on these deposits is
almost the same as that of FD. On maturity the depositor gets
back the amount deposited together with the interest accrued.
7. LIFE INSURANCE SCHEMES
A life insurance contract is one whereby the insurer, in
consideration of a premium paid either in lump-sum or in
periodical instalments, undertakes to pay an annuity or a certain
sum of money, either on the death of the insured or on the
expiry of a certain number of years. Naturally, if a person dies,
the payment will be made to the nominee of the deceased. But
if the money becomes due during his life time the amount will
be paid to him.
In India, life insurance business was nationalised on 19th
January 1956 and since then it is carried on by the government
owned Life Insurance Corporation of India. But after the
implementation of the Insurance (amendment) Act 2002,
private sectors have been allowed to conduct insurance
business-both life and general.
a) Whole life policy
Under this policy the assured sum becomes due for payment to

the beneficiary only after the death of the insured. It means that
the insurer has to pay premium on such policy throughout his
life time.
b) Endowment life policy
Endowment policy is a policy which runs for a fixed period or
up to a particular age to the insured. The insured amount
becomes due for payment either on the death of the insured or
on the expiry of the specified period whichever is earlier.
c) With-profit policy
This type of policy entitles the policy holder to receive, in
addition to the guaranteed sum payable on maturity, a share in
the profit made by the Life Insurance Corporation also.
d) Without profit policy
This policy entitles the policy holder to get only the stated sum
on the maturity of the policy.
8. REAL ESTATE
Land and house property are commonly describes as real
estate. Real estate offers an attractive from of investment, now
a day. Real estate differs from investments in other financial
assets mainly on the ground that it involves the ownership of a
tangible asset, in other words, investment is in a real property
rather than a financial claim.
Though real estate is a highly attractive investment opportunity,
the quantum of capital investment required is huge, so that the
ordinary investors do not have easy accessibility in real estate
market. Another feature of real estate market is that the price is
extremely different from region to region. Therefore property
must be evaluated in terms of price, location and use before
making any investment.
9. OTHER INVESTMENT AVENUES
a) Gold
Gold is one of the most valuable assets in any economy. It has
been used in India primarily as a form of savings by the

households. Investing in gold is good form of hedge against

inflation as well as a reservoir for future use. Investment in
gold can be in form of gold coins, gold bars, ornaments and
gold ETF. Currently investment in gold has become speculative
than for long term investment.
b) Silver
As in the case of gold, silver is another good investment
avenue. The price of silver, though less than gold, normally
moves in the same direction as that of gold. Since silver is
extensively used for industrial requirements, general factors
influencing industrial growth also affect the price and future of
silver.
c) Diamonds
The price of diamonds keep on increasing in the same way as
the price of gold and it is another investment avenue. Diamonds
are valued on the basis of weight, size, shape and luster.
Therefore it is an extremely risky form of investment since the
value of diamond is based on personal judgments too.
Moreover, diamonds do not have much importance or use other
than for ornaments.
d) Coins and Stamps
Collection of rare coins and stamps has become an investment
avenue, in recent times. Old and rare coins and stamps have
antique value and can be sold for very high prices.
e) Antiques
As in the case of coins and stamps, antiques also have become
a focal area for many of the investors. Antiques in the form of
paintings, watches, cars, coins, stamps, flower vases have great
demand. Since supply of antiques is very rare they have huge
value which increases due to passage to time. Longer the time
of holding this instrument the greater will be the value.

CHAPTER 3
DATA ANALYSIS AND
INTEPRETATION

CHAPTER 3

ANALYSIS OF PRIMARY DATA

This chapter deal with analysis and interpretation of
primary data collected through questionnaire. For evaluating
the investors preference on various investment avenues, a

descriptive form of analysis is required. The sampling unit in

the study consists of respondents from Ramapuram Grama
Panchayath. The sampling size was fixed at 50 respondents.
A. ANALYSIS OF PERSONAL PROFILE OF
RESPONDENTS
This part of the study covers a brief description of
respondents age, gender, education, occupation, monthly
income etc.
1. Age wise classification
Age is an important factor influencing the investment
awareness of a person. The following table and figure shows
age wise classification of respondents.
Table 3.1
Table showing classification of
respondents on the basis of age
Source: Primary Data

Figure 3.1
Age wise classification of respondents
Age
No. Of Respondents
Percentage
20-30
14
28
30-40
8
16
40-50
19
38
Above 50
9
18
Total
50
100

20
18
16
14
12
No of respondents 10
8

No. Of Respondents

6
4
2
0

20-30

30-40

40-50

Above 50

Age of respondents

Source: Table 3. 1

Interpretation:
From the above table and figure it is clear that, out
of 50 respondents 28% of respondents belongs to the age group
of 20-30, 16% of respondents belongs to age group of 30-40,
38% of respondents belong to the age group of 40-50 and
remaining 18% of respondents come under the age group above
50.
2. Gender wise classification
The study consists of both males and
females. The following table shows the classification on the
basis of gender.
Table 3.2
Table showing classification of respondents
on the basis of gender
Gender
No. Of Respondents
Percentage
Male
41
82

Female
Total

9
50

18
100

Source: Primary Data

Figure 3.2
Gender wise classification of respondents
45
40
35
30
25
No of respondents 20

No of respondents

15
10
5
0

Male

Female

Gender of respondents

Source: Table 3. 2

Interpretation:
The above table and figure indicates that,
majority of respondents are male, which comes 82% and
remaining 18% are female.
3. Educational qualification wise
classification
Education is one of the most important factors
influencing the investment awareness of a person. The
following table shows the education wise classification of

respondents.

Table 3.3
Table showing classification of respondents
on the basis of education
Education
No. Of Respondents
Percentage
SSLC
8
16
+2/pdc
18
36
Graduate
13
26
Postgraduate
11
22
Total
50
100
Source: primary Data

Figure 3.3
Educational qualification wise classification
of respondents

SS

G
ra
du
at
e

No of respondents

LC

No.of respondents

20
18
16
14
12
10
8
6
4
2
0

Educational qualifications of respondents

Source: Table 3. 3

Interpretation:
From the above table and figure it is clear that, out of 50
respondents, 16% belongs to SSLC, 36% belongs to P.D.C/+2,
26% are Graduate and remaining 22% of respondents are Post
Graduate.

4. Occupation wise classification

Occupation is another important factor influencing the
investment of a person. The following table shows the
occupation wise classification of respondents.
Table 3.4
Table showing classification of respondents
on the basis of occupation
Occupation
No. Of Respondents
Percentage
Govt. Employee
2
4
Pvt. Employee
12
24
Business
17
34
Farmer
8
16
House wife
4
8
others
7
14
Total
50
100
Source: Primary Data

Figure 3.4
Occupation wise classification of
respondents

H
ou
se

wi
fe

No of respondents
Bu
si
ne
ss

G
ov
t.E
m

pl
oy
ee

No of respondents

18
16
14
12
10
8
6
4
2
0

Occupation of respondents

Source: Table 3. 4

Interpretation:
Occupation wise classification of respondents shows
that, out of 50 respondents 4% Govt. Employees, 24% Pvt.
Employees, 34% business man, 16% farmers, 8% house wife,
and others are 14%.
5. Monthly Income wise classification
Income is an important factor which motivates a person
to make investment. The following table and figure shows the
classification of respondents on the basis of monthly income.
Table 3.5
Table showing classification of
respondents on the basis of monthly income
Monthly Salary
No. Of Respondents
Percentage
Below 10000
15
30
10000-20000
11
22
20000-30000
11
22
Above 30000
13
26
Total
50
100
Source: Primary Data

Figure 3.5
Income wise classification of respondents

16
14
12
10
8
6

No of respondents

No of respondents

2
20
00
030
00
0

Be
lo
w

10
00
0

Monthly salary

Source: Table 3. 5

Interpretation:
From the above table and figure it is clear that, out of 50
respondents, 30% belongs to the income level of Below 10000,
22% belongs to the income level of 10000-20000, 22% belongs
to the income level of 20000-30000, and remaining 26%
belongs to the income level of Above 30000.
6. Marital Status wise classification
The following table and figure shows the classification of
respondents on the basis of marital status.
Table 3.6
Table showing classification of
respondents on the basis of
marital
status
Marital Status
No. Of Respondents
Percentage
Single
15
30
Married
35
70
Total
50
100
Source: Primary Data

Figure 3.6
Classification on the basis of marital status
of respondents
40
35
30
25

No of respondents 20
No of respondents

15
10
5
0

Single

Married

Marital status of respondents

Source: Table 3. 6

Interpretation:
From the above table and figure it is clear that, 30% of
respondents are single and remaining 70% of respondents are
married.
B. ANALYSIS OF INVESTORS PREFERENCE
ON VARIOUS INVESTMENT AVENUES
This part of the study covers a brief description of
investors preference and awareness of various investment
avenues like Govt. Securities, Bank Deposits, Share market,
Provident fund, Life insurance, Post office savings, Mutual
funds, Real estate etc. from respondents of Ramapuram grama
panchayath.
1. Number of respondents having savings

The investment in various avenues provides savings. The

following table and figure shows number of respondents having
savings.
Table 3.7
Table showing the number of
respondents having savings
Savings
Yes
No
Total

No. Of Respondents
50
0
50

Percentage
100
0
100

Source: Primary Data

Figure 3.7
Figure showing the number of respondents
having savings
60
50
40
No of respondents 30
No of respondents

20
10
0

Yes

No

Savings

Source: Table 3. 7

Interpretation:
From the above table and figure it is clear that, all the
respondents having savings.
2. Number of respondents having
awareness about all investment
avenues
Awareness about all investment avenues is an important
factor to make profitable investment. The following table and

figure shows the number of respondents having awareness

about all investment avenues.
Table 3.8
Table showing the Number of
respondents having awareness about
investment avenues
Awareness
No. Of Respondents
Percentage
Yes
43
86
No
7
14
Total
50
100
Source: Primary Data

Figure 3.8
Figure showing the Number of respondents
having awareness about investment avenues
50
40
30
No of respondents

20

No of respondents

10
0

Yes

No

Investors awareness

Source: Table 3. 8

Interpretation:

From the above table and figure it is clear that, 86% of

respondents are aware about investment avenues and remaining
14% of respondents are unaware of investment avenues.
3. Investors preference for savings
The investor should invest their savings in investment
avenues such as Govt. Securities, Bank deposit, Share market,
Provident fund, Life insurance, Post office savings, Mutual
funds, Real estate etc. The following table and figure shows the
investors preference for their savings.
Table 3.9
Table showing the respondents
preference for savings
Investment Preference
Govt. Securities
Bank Deposit
Share market
Provident fund
Life insurance
Post office savings
Mutual funds
Real estate

No. Of Respondents
3
38
8
0
21
3
8
2

Source: Primary Data

Figure 3.9
Figure showing the respondents preference
regarding their savings

40
35
30
25
20
15

No of respondents

10

No of respondents

5
M
ut
ua
lf
un
ds

in
su
ra
nc
e
Li
fe

ar
ke
t
m
Sh
ar
e

G
ov
t.

Se
cu
rit
ie
s

Preference of respondents

Source: Table 3. 9

Interpretation:
Most of the investors are having their savings in one or
more investment avenues. From the above table and figure it is
clear that, out of 50 respondents, majority of the respondents
prefer bank deposit for their savings.

4. A) Investment satisfaction
Satisfaction is necessary for all investments and the

following table and figure shows whether the respondents are

satisfied or not with their investment.
Table 3.10 A
Table showing whether the respondents are
satisfied with their investment
Investment
No. Of Respondents
Percentage
Satisfaction
Yes
45
90
No
5
10
Total
50
100
Source: Primary Data

Figure 3.10 A
Figure showing whether the respondents are
satisfied with their investment
50
45
40
35
30
No of respondents

25
20

No of respondents

15
10
5
0

Yes

No

Satisfaction

Source: Table 3. 10 A

Interpretation:
From the above table and figure it is clear that, 90% of
respondents are satisfied with their investment and the
remaining 10% are not satisfied.
4. B) Investors level of satisfaction from
their investment
For all investments, there is a satisfaction and the level of

satisfaction is different for each one. The following table and

figure shows the level of satisfaction of respondents.
Table 3.10 B
Table showing the level of satisfaction of
respondents
Level of Satisfaction
No. Of Respondents
Very Good
10
Good
27
Satisfactory
7
Poor
1
Source: Primary Data

Figure 3.10 B
Figure showing the level of satisfaction of
respondents
30
25
20
15
No of respondents

10
No of respondents

Sa
tis
fa
ct
or
y

Ve
ry

G
oo
d

Level of satisfaction

Source: Table 3. 10 B

Interpretation:
From the table and figure it is clear that, out of 45
respondents who are satisfied with their investment, 10
respondents marked their satisfaction level as Very good, 27
respondents marked their satisfaction level as Good, 7
respondents marked their satisfaction level as Satisfactory and

the remaining 1 marked his satisfaction as Poor.

5. Investment motive of respondents
For every investor there will be a motive behind his
investment. It can be return, safety, savings or tax benefits.
From the following table and figure we can look into the
respondents investment motives.

Table 3.11
Table showing investment motive of
respondents
Investment Motive
No. Of Respondents
Return
10
Safety
12
Savings
25
Tax Benefit
3
Total
50

Percentage
20
24
50
6
100

Source: Primary Data

Figure 3.11
Figure showing investment motive of
respondents
30
25
20
15
No of respondents 10
No of respondents

5
Sa
vi
ng
s

Re
tu
rn

Investment motives

Source: Table 3. 11

Interpretation:
From the above table and figure it is clear that, out of 50
respondents 10 respondents chose their investment motive as
return while 12 respondents motive is safety, 25 respondents
motive is saving and 3 respondents motive is tax benefits.
6. Investment objective of respondents
For every investor there will be an objective behind his
investment. It can be savings or capital appreciation. From the
following table and figure we can look into the respondents
investment objective.
Table 3.12
Table showing investment objective of
respondents
Investment objective
No. Of Respondents
Percentage
Savings
37
74
Capital appreciation
13
26
Total
50
100
Source: Primary Data

Figure 3.12
Figure showing investment objective of
respondents
40
35
30
25
20
No. of respondemts

15
10

No. Of Respondents

5
Sa
vi
ng
s

Investment objective

Source: Table 3. 12

Interpretation:
From the above table and figure it is clear that, out of 50
respondents 74% respondents chose their investment objective
as savings and 26% respondents objective is capital
appreciation.
7. A) Regular income from investment
Every investors prime motive is to gain a regular
income from investment. The following table and figure shows
whether respondents get a regular income or not.
Table 3.13 A
Table showing whether respondents get a
regular income or not
Regular Income
No. Of Respondents
Percentage
Yes
34
68
No
16
32
Total
50
100
Source: Primary Data

Figure 3.13 A
Figure showing whether respondents get a
regular income or not

40
35
30
25
No of respondents 20
15
10
5
0

No of respondents

Yes

No

Return from investment

Source: Table 3.13 A

Interpretation:
From the above table and figure it is clear that, out of 50
respondents 34 respondents get a regular income from
investment while the remaining 16 respondents do not get a
regular income.
7. B) Satisfaction on regular income from
investment
Satisfaction on regular return from investment for each
respondent can be understood from the following table and
figure.
Table 3.13 B
Table showing the level of satisfaction
from regular return on investment
Satisfaction on Return
No. Of Respondents
Very good
8
Average
19
Satisfactory
6
Dissatisfied
1
Source: Primary Data

Figure 3.13 B
Figure showing the level of satisfaction from
regular return on investment

No of respondents
Sa
tis
fa
ct
or
y

Ve
ry

go
od

No of respondents

20
18
16
14
12
10
8
6
4
2
0

Level of satisfaction

Source: Table 3.13 B

Interpretation:
From the above table and figure it is clear that, out of 34
respondents who get a regular income (as table 3.12A shows) 8
respondents mark their level of satisfaction as very good while
19 respondents mark their level of satisfaction as average, 6
respondents as satisfactory and the remaining 1 respondent as
not satisfied.
8. Respondents preference regarding
profitable investment avenue.
Investors idea about profitable investment avenue is

different for each individual. From the following table and

figure we get a clear idea about investor preference regarding
profitable avenue.

Table 3.14
Table showing respondents preference
on profitable investment avenue
Profitable Sector
No. Of Respondents
Percentage
Govt. Securities
4
8
Bank Deposit
10
20
Share market
19
38
Provident fund
1
2
Life insurance
5
10
Post office savings
2
4
Mutual funds
3
6
Real estate
6
12
Total
50
100
Source: Primary Data

Figure 3.14
Figure showing respondents preference
regarding profitable investment avenue

20
18
16
14
12
10
8
No of respondents

6
No of respondents

4
2

G
ov
t.

Se
cu
rit
ie
s

Pr
ov
id
en
tf
un
d
M
ut
ua
lf
un
ds

Investment sectors

Source: Table 3. 14

Interpretation:
From the above table and figure it is clear that, out of 50
respondents 10 respondents prefer Bank deposit as profitable
one while 19 respondents prefer Share market, 2 respondents
prefer Post office savings, 5 respondents prefer life insurance, 1
respondent prefer Provident fund, 3 respondent prefer Mutual
fund, 6 respondents prefer Real estate as profitable investment
avenue and 4 respondents prefer Govt. securities as a profitable
investment avenue.
9. Profitability and safety on the basis of
investment portfolio.
Investing in a particular sector and in different sectors are
two types of investment method adopted by investors. From the
following table and figure we get a clear idea regarding
respondents opinion about profitable and safe investment
methods.

Table 3.15
Table showing respondents opinion
regarding profitable and safe
investment method
Profitable and Safe
No. Of Respondents
Percentage
Investment in a
15
30
particular sector
Investment in different
35
70
sectors
Total
50
100
Source: Primary Data

Figure 3.15
Figure showing respondents opinion
regarding profitable and safe investment
method
40
35
30
25
No of respondents

20
15

No of respondents

10
5
0
Investment in a particular sector
Opinion of respondents

Source: Table 3. 15

Interpretation:
From the above table and figure we get a clear idea that,
out of 50 respondents 15 respondents opined that investing in
particular sector is profitable and safe and the remaining 35
respondents are of the view that investing in different sectors is
profitable and safe.
10.
Risk taking in investment

Risk is a hidden element in every investment. Taking risk

in investment is according to investors choice. And the
following table and figure gives a clear idea regarding
investors opinion about whether risk is essential or not in their
investment.
Table 3.16
Table showing respondents opinion
regarding risk taking in investment
Risk Taking
No. Of Respondents
Percentage
Essential
34
68
Not Essential
16
32
Total
50
100
Source: Primary Data

Figure 3.16
Figure showing respondents opinion
regarding risk taking in
investment
40
35
30
25
20
15
10
5
0
ot
Es
s
N

Es
s

en
tia
l

No of respondents
en
tia
l

No of respondents

Opinion about risk taking

Source: Table 3. 16

Interpretation:
From the above table and figure it is clear that, out of 50
respondents 34 respondents opinion is that risk taking is
essential in investment while the remaining 16 respondents
opinion is risk taking is not essential in investment.
11. A) Investors opinion regarding changing

current investment to another investment

Changing of current investments to another investment
avenue is necessary to earn more return and to get a regular
check on our investment. From the following table and figure
we get a clear idea regarding respondents opinion about
changing their current investment to a new investment avenue.
Table 3.17 A
Table showing respondents opinion
about changing their current
investment to a new investment avenue
Investment Changes
Yes
No
T0tal

No. Of Respondents
11
39
50

Percentage
22
78
100

Source: Primary Data

Figure 3.17 A
Figure showing respondents opinion about
changing their current investment to a new
investment avenue

45
40
35
30
25
No of respondents 20

No of respondents

15
10
5
0

Yes

No

Opinion of respondents

Source: Table 3. 17 A

Interpretation:
From the above table and figure it is clear that, out of 50
respondents 11 respondents are willing to change their current
investment and the remaining 39 respondents are not willing to
change their current investment.
11. B) Preference of the respondents
who wish to change their current
investment to a new investment
avenue.
For changing current investment respondents need to
prefer a new investment avenue. The following table and figure
shows the respondents preference for new investment avenue.
Table 3.17 B
Table showing respondents preference
for new investment avenue
New Investment Avenue
No. Of Respondents
Govt. Securities
0
Bank Deposit
2
Share market
2

Provident fund
Life insurance
Post office savings
Mutual funds
Real estate

1
1
1
1
3

Source: Primary Data

Figure 3.17 B
Figure showing respondents preference for
new investment avenue

3.5
3
2.5
2
1.5
1

No of respondents

No of respondents

0.5
in
su
ra
nc
e

Li
fe

G
ov
t.

Se
cu
rit
ie
s

Preference of respondents

Source: Table 3. 17 B

Interpretation:
From the above table and figure it is clear that, out of 11
respondents (as table 3.16A shows) who wish to change their
current investment to a new profitable investment avenue 2
respondents prefer bank deposit, 2 respondent prefer share
market, 1repondent prefer provident fund, 1 respondent prefer
life insurance, 1 respondent prefer post office saving, 1
respondent prefer mutual funds and 3 respondent prefer real
estate for their new investment and no one prefer Govt.
Securities for their new investment.
12. Respondents preference regarding
time period of investment
Time is an essential element in investment. Time period
of investment can make high changes in return from
investment. Both short term and long term investments are
available in our financial markets. Respondents preference
regarding time period of investment can be analysed from the
following table and figure.
Table 3.18

Table showing respondents preference

regarding time period of investment
Preference of
Investment Duration
Long Term
Short Term
Both of them
Total

No. Of Respondents

Percentage

14
16
20
50

28
32
40
100

Source: Primary Data

Figure 3.18
Figure showing respondents preference
regarding time period of investment
25
20
15
10

No of respondents

No of respondents

of
th
em

Te
rm

Bo
th

Sh
or
t

Lo
ng

Te
rm

Preference of respondents

Source: Table 3. 18

Interpretation:
From the above table and figure it is clear that, out of 50
respondents 14 respondents prefer long term investment, 16
respondents prefer short term investment and 20 respondents
prefer both the short and long term investment.

13. Respondents opinion about the

extent of risk taking in investment.
From the table 3.15 it is clear that it is essential to take
risk in investment. The following table and figure shows
respondents opinion about to what extent they want to take risk
in investment.
Table 3.19
Table showing respondents opinion
about to what extent they want to take
risk in investment.
Risk Taking
No. Of Respondents
Percentage
High Risk
5
10
Average Risk
21
42
Low Risk
19
38
No Risk
5
10
Total
50
100
Source: Primary Data

Figure 3.19
Figure showing respondents opinion
about to what extent they want to take
risk in investment.

25
20
15
10

No of respondents

No of respondnets

Ri
sk
Lo
w

H
ig
h

Ri
sk

Opinion of respondents

Source: Table 3. 19

Interpretation:
From the above table and figure t is clear that, out of 50
respondents 5 respondents prefer to take high risk, 21
respondents prefer to take an average risk, 19 respondents
prefer to take low risk and remaining 5 respondent do not prefer
risk in their investment.
14. Grading of investment avenues on the
basis of profitability
Every investment gives a profit and the profitability of
investment avenues can be measured. Here it is a tabular
representation on profitability of Investment Avenue on the
basis of the respondents preference.
Table 3.20
Table showing grading of investment
avenues on the basis of profitability
Particula Rank Rank Rank Rank Rank Rank Rank Rank Tota
r
-1
-2
-3
-4
-5
-6
-7
-8
l
Govt.
5
4
5
6
13
4
7
6
50
Securitie
s

Bank
Deposit
Share
market
Providen
t fund
Life
insuranc
e
Post
office
savings
Mutual
funds
Real
estate
Total

10

13

50

15

50

10

14

50

14

50

15

50

14

50

11

10

10

50

50

50

50

50

50

50

50

50

Source: Primary Data

Interpretation
According to the respondents view regarding profitable
investment avenue it is found that share market is the profitable
one and 2nd bank deposit, 3rd real estate, 4th life insurance, 5th
govt. Securities, 6th mutual fund, 7th post office savings, and the
last one is provident fund.
15. Grading of investment avenues on the
basis of risk
Every investment is having a risk and the risk in the
investment avenues can be measured. Here it is a tabular
representation on risk in Investment Avenue on the basis of the
respondents preference.
Table 3.21
Table showing grading of investment
avenues on the basis of risk
Particular Rank Rank Rank Rank Rank Rank Rank Rank- Total
-1
-2
-3
-4
-5
-6
-7
8
Govt.
5
9
7
7
5
17
50

Securitie
s
Bank
Deposit
Share
market
Provident
fund
Life
insurance
Post
office
savings
Mutual
funds
Real
estate
Total

1
31

1
14

15

12

50

50

11

17

50

12

10

50

15

14

16

50

10

18

10

50

16

23

50

50

50

50

50

50

50

50

50

Source: Primary Data

Interpretation
According to the respondents view, the high risky avenue
is share market, 2nd real estate, 3rd mutual fund, 4th life
insurance, 5th provident fund, 6th post office savings, 7th bank
deposit and the last one is govt. Securities.

CHAPTER 4
FINDINGS SUGGESTIONS AND
CONCLUSTION

CHAPTER 4
FINDINGS, SUGGESTIONS
AND CONCLUSION
This chapter deals with the findings suggestions and
conclusion drawn from the study. The purpose of the study was
to know the investor preference on various investment avenues
with special reference to Ramapuram grama punchayath.
The study was conducted with the following objectives:
7. To know about various investment avenues.
8. To study the preference of the investors.
9. To study the risk taking capacity of investors.
10.
To know about the investors motive
behind investment.
11.
To know investors perception regarding
return from investment.
12.
To find out which investment avenue is
mostly preferred by investors.

FINDINGS
A. PERSONAL PROFILE OF RESPONDENTS
1. The study reveals 38% of respondents
belong to the age group of 40-50.
2. The study reveals that 82% of respondents
are male and 18% of respondents are
female.
3. It was found that 36% of respondents are
+2/P.D.C and 26% are graduates.

4. Out of 50 respondents, 4% Govt.

Employees, 24% Pvt. Employees, 34%
business man, 16% farmers, 8% house
wife, and others are 14%.
5. Out of 50 respondents, 30% belongs to the
income level of Below 10000, 22% belongs
to the income level of 10000-20000, 22%
belongs to the income level of 2000030000, and remaining 26% belongs to the
income level of Above 30000.
6. Out of 50 respondents, 70% respondents
are married and 30% are single.
B. INVESTOR PREFERENCE OF VARIOUS
INVESTMENT AVENUES
1. The study reveals that all the
respondents are having saving.
2. Out of 50 respondents, 86% are aware
about all the investment avenues.
3. The study reveal that majority of
respondents prefer BANK DEPOSIT for
their savings.
4. Out of 50 respondents, 45% are
satisfied in their investment.
5. Out of 45 satisfied respondents, 60% of
respondents level of satisfaction is
good and 22.22% respondents level of
satisfaction is very good.

6. Out of 50 respondents, 50% of

respondents investment motive is
savings, 24% of respondents
investment motive is safety, 20% of
respondents investment motive is
return and 6% of respondents
investment motive is tax benefits.
7. Out of 50 respondents, 68% of
respondents having a regular income
from investment and 32% of
respondents are not getting a regular
income from investment.
8. Out of 68% of respondents who get a
regular income from investment 55.88%
of respondents level of satisfaction in
regular income is average and 23.52%
of respondents level of satisfaction in
regular income is very good.
9. Out of 50 respondents, 38% of
respondents prefer share market as
profitable investment avenue.
10.
Out of 50 respondents, 70% of
respondents opinion is investment in
different sectors is profitable and safe
investment method.
11.
Out of 50 respondents, 68% of
respondents opinion is risk taking in
investments are essential.

12.
Out of 50 respondents, 78% of
respondents are not willing to change
their investment to another one.
13.
Out of 22% of respondents who
wish to change investment, 27.27%
prefer real estate for their new
investment.
14.
Out of 50 respondents, 40% of
respondents prefer long term and short
term for their investment.
15.
Out of 50 respondents, 42% of
respondents are ready to take an
average risk in their investment.
16.
The study reveals that share
market is the risky investment avenue.

SUGGESTIONS

1. Conduct more awareness programs

about investment avenues especially in
rural areas.
2. Aware investors about the tax benefits
from investment.
3. Investors should get services of
investment consultants before taking an
investment decision.

CONCLUSION
Investment is an activity by which a
person is able to earn income in future. The object
of investment may be regular income or capital
appreciations. There are number of investment
avenues in modern financial sector. It includes
high risk securities, low risk securities, no risk
securities etc. Therefore, surplus funds if any must
be deployed in a most fruitful way to make it
productive and also to beat the erosion in value
due to inflation. However, selecting the best
alternative investment is not an easy task. One
has to be aware of all the alternatives, to choose
the best based on his risk return preferences.

BIBLIOGRAPHY

1. Avadhani V.A. INDIAN CAPITAL

MARKET. 1ST Ed., Himalaya Publishing
House, Mumbai, 1997.
2. Avadhani V.A. SECURITIES ANALYSIS
AND PORTFOLIO MANAGEMENT. 7TH
Ed., Himalaya Publishing House,
Mumbai, 2004.
3. Chandra Prasanna. INVESTMENT
ANALYSIS AND PORTFOLIO

MANAGEMENT. 2ND Ed., Tata Mc

Graw-Hill publishing company ltd. New
Delhi, 2005.
4. Dr. Joseph K Jojo CAPITAL MARKET
AND INVESTMENT MANAGEMENT1st
Ed., Soba Publication, Changanacherry,
2012.
5. Dr. Mathew Tomy. CAPITAL MARKET.
1st Ed., Prathibha Publishers,
Changanacherry, 2011.
6. Singh Preeti. INVESTMENT
MANAGEMENT 13TH Ed., Himalaya
publishing house, Mumbai, 2005.
7. Subramonion P. CAPITAL MARKET
AND FINANCIAL SERVICE THEORY
AND OPERATIONS. 3RD Ed., Kalyani
Publishers, New Delhi, 2003.

QUESTIONNAIRE
Dear Respondents,
We are doing our graduation in
Commerce

at

Mar

Augusthinose

College

Ramapuram and as per our curriculum, we are

conducting A Study on Investor Preference of
Various

Investment

Avenues

with

Special

Reference to Ramapuram Grama Panchayath and

your valuable feedback will help us a lot to
complete our study successfully. So we request
you to please fill up the given questionnaire.
Jeffin Joseph
Jeffy Augustine
Jinil Joseph
1. Name
2. Age
30-40

:
: 20-30
40-50

above 50
3. Gender
female
4. Education
Graduate

: male
: SSLC
+2/pdc

Postgraduate
Others
5. Occupation
Govt. Employee
Business
Farmer
others
6. Monthly salary
10000-20000

:
Pvt. Employee
House wife
: Below 10000
20000-30000

above 30000
7. Marital status
Married
8. Do you have savings?
No

:
:

Single
Yes

9. Are you aware about all investment avenues?

Yes
No
10. From the following which one you prefer for
your savings?
Govt. Securities
Provident fund
Mutual funds
Bank Deposit
Life insurance
Real estate
Share market
Post office savings
others
11. a) Are you satisfied with your investment?
Yes
No
b) If yes, your level of satisfaction.
Very
good
Good
Satisfactory
Poor
12. What is your investment motive?
Return
Safety
Savings
Tax benefit
13. What is your investment objective?
Savings
Capital
appreciation
14. a) Do you get regular income from
investment?
Yes
No
b) If yes, how much you are satisfied in your
return?
Very good
Average
Satisfactory
Not satisfied
15. Which sector you prefer as profitable one?
Govt. Securities
Provident fund
Mutual fund
Bank Deposit
Life insurance
Real estate
Share market
Post office savings
others
16. In your opinion which is profitable and safe?

Investment in a particular sector

Investment in different sectors
17. Opinion about the element of risk taking in
investment?
Essential
Not essential
18. A) Do you wish to change your current
investment to another
profitable Investment?
Yes
No
B) If yes, which investment you prefer?
Govt. Securities
Provident fund
Mutual funds
Bank Deposit
Life insurance
Real estate
Share market
Post office savings
others
19. In your opinion, which one you prefer?
Long term investment

Short term

investment
Both of them
20. To what extent you prefer to take risk in
investment?
No risk
risk

Low risk
High risk

21. Grade the investment on the basis of

Average

profitability.
(E.g. More profitable-grade 1)
Investment
Avenues
Govt. Securities

Grad
e

Provident fund
Mutual funds
Bank Deposit
Life insurance
Real estate
22. Grade
investment
basis of
(E.g.
-grade 1)

Share market

the
on the
risk.
High risk

Post office
savings

Investment
Avenues
Govt. Securities
Provident fund
Mutual funds
Bank Deposit
Life insurance
Real estate
Share market
Post office
savings

Grad
e