RESEARCH PROJECT REPORT

ON

INVESTMENT BEHAVIOR AMONG THE

INVESTORS
Submitted in the partial fulfillment of the requirement for BBA
degree Programme of Chaudhary Charan Singh University,
Meerut

SUBMMITED TO
Mr. Arpit

SUBMMITED BY :Bittu
ROLL NO. 3076502

DEPARTMENT OF MANAGEMENT STUDIES

BACHELOR OF BUSINESS ADMINISTRATION
SHIVAM TECHNICAL CAMPUS
KHURJA BSR

DECLARATION
I, Bittu, Roll No. 3076502 , student of BBA FINAL YEAR Shivam
Technical Campus Khurja BSR here by declare that the research report
entitled INVESTING BEHAVIOR REGARDING THE INVESTORS is my
original work and the same has not been submitted to any other
University for the award of any other degree or diploma.

Place: Khurja
Date: ..

(BITTU)

My Research project with INVESTING BEHAVIOR REGARDING

THE INVESTORS proved to be highly valuable and informative sojourn.
I got some valuable insights from this exercise, which has definitely
enabled me to hone my skills and widen my perspective towards banking
in its modern prospect.
I express my gratitude towards Mr.HOD of BBA Department, faculty who
gave me opportunity to complete my Research Project. I am also
thankful to him for providing me his able guidance , valuable suggestions
and for sharing his experiences with me without which this project may
not have been successful.

I am also grateful to all my colleges who continuously helped me in my

project and for their kind co-operation and by sparing their valuable time
in providing me the information needed.

TABLE OF CONTENTS
CONTENTS

1 Introduction
What is Investment
Features of An Investment Programme
Investing Behavior
Equity Share
Bond
Insurance
Mutual Fund
2 Objective of the project
3 Importance of the study
4 Scope of the study
5 Research Methodology
6 Data Analysis & Interpretation
7 Reccommendation & Suggestion
8 Conclusion

INVESTMENT

Investment is the sacrifice of certain present value for the uncertain future
reward. It entails arriving at numerous decisions such as type, mix, amount,
timing, grade etc. of investment and disinvestment. Further, such decisionmaking has not only to be continuous but rational too. Broadly speaking,
and investment decision is a trade off between risk and returns. All
investment choices are made at points of time in accordance with the
personal investment ends and a contemplation of an uncertain future. Since
investments in securities are revocable investment ends are transient and
investment environment is fluid, the reliable bases for reasoned
expectations become more and more vague as once conceives of the
distance future. Investors in securities will, therefore, form time to time,
reappraise and re-evaluate their various investment commitments in the
light of new information, changed expectations and ends.

Investment choices or decisions are found to be the outcome of three

different but related classes of factors. The first may be described as factual
or informational premises .The factual premises of investment decisions are
provided by many streams of data which taken together, represent to an
investor, the observable environment and general as well as particular
features of the securities and firms in which he may invest. The second

class of factors, entering into investment decisions may be described as

expectational premises. Expectations relating to the outcomes of alternative
investments are subjective and hypothetical in any case but their
foundations are necessarily provided by the environmental and financial
facts available to investors. These limit not only the range of investments,
which may be undertaken, but also the expectations of outcomes, which
may legitimately be entertained. The third and final class of factors may be
described as valuational premises. For investors generally these comprise
the structure of subjective preferences for the size and regularity of the
income to be received from and for the safety and negotiability of specific
investment or combinations of investments as these are appraised from
time to time.

Investment: the three things that matter

1 How much cash can I expect to receive?
2 When can I expect to receive it?
3 How confident can I be that I will get the amount of cash I expect,
and how certain can I be that I will get it when I expect it?

Investment/Speculation/Gambling:

People usually make investments with a future end date in mind. The
length of time from the date when investment is purchased to the final
date can be called the investors planning horizon, investment
horizon, or holding period. A financial asset purchased with a very
short holding period in mind probably is not really an investment- it
may be simply a gamble or a speculation.
A gamble is usually a very short- term investment in a game of
chance. The holding period for most gambles can be measured in
seconds. That is, the result of so called investment are quickly
resolved by the roll of the dice or the turn of a card. Such activities
have planning horizons that are far too brief to do the research that
should precede any investment activity.
Speculation is typically last longer than gambles but are briefer than
investment. A speculation usually involves the purchase of a salable
asset in hopes of making a quick profit from an increase in the price
of the asset, which expected to occur within a few weeks or months.
Those involved in speculations are reluctant to refer to this activity as
speculation because they dislike the connotations of the word; the
prefer to refer to speculations as investment activities.

There is no precise dividing line with respect to the length of

investment holding periods that could be used to separate gambles
from speculations and speculations from investments. At its best,
investment is well grounded and carefully planned speculation
whereas it is an ostrich-like form of involuntary and unconscious
speculation at its worst. There are no set rules or permanently
establishing

which

securities

are

investment

and

which

are

speculations.

FEATURES OF AN INVESTMENT PROGRAMME

Choosing specific investments, investors will need definite ideas
regarding features which their portfolios should posses. These
features would be consistent with the investors general objectives
and, in addition, should afford them all the incidental conveniences
and advantages which are possible under the circumstances. The
following are the suggested features as the ingredients from which
many successful investors compound their selection policies.

Safety of Principal

The safety sought in investment is not absolute or complete; it rather

implies protection against loss under reasonably likely conditions or
variations. It calls for careful review of economic and industry trends before
deciding types and timing of investments. Thus, it recognized that errors are
unavoidable for which extensive diversification is suggested as an antidote.
Adequate Liquidity and Collateral Value

An investment is a liquid asset if it can be converted into cash without delay

at full market value in any quantity. For an investment to be liquid it must be
(1) reversible or (2) marketable. The difference between reversibility and
marketability is that reversibility is the process whereby the transaction is
reversed or terminated while marketability involves the sale of the
investment in the market for cash.
Stability of income

Stability of income must be looked at in different ways just as was security

of principal. An investor must consider stability of monetary income and
stability of purchasing power of income. However, emphasis upon income
stability may not always be consistent with other investment principles. If
monetary income stability is stressed, capital growth and diversification will
be limited.

Capital Growth

Capital appreciation has today become a important principle, recognizing

the connection between corporation and industry growth and very large
capital appreciation, investors and their advisers constantly are seeking
growth stock. It is exceedingly difficult to make a successful choice. The
ideal growth stocks is the right issue in the right industry, bought at the
right time.
Tax Benefits

To plan an investment programme without regard to ones tax status may

be costly the investor. There are really two problems involved here, one
concerned with the amount of income paid by the investment and the other
with the burden of income taxes upon that income. When investors income
are small, that are anxious to have maximum cash returns on their
investments, and are prone to take excessive risks. On the other hand,
investors who are not pressed for cash income often find that income taxes
deplete certain types of investment income less than others, thus affecting
their choices.
Purchasing Power Stability

Since an investment nearly always involves the commitment of current

funds with the objective of receiving greater amount of future funds, the
purchasing power of the future funds should be considered by the investors.
For maintaining purchasing power stability, investors should carefully study
(1) the degree of price level inflation they expect, (2) the possibility of gain
and loss in the investment available to them, and (3) the limitations imposed
by personal and family considerations.

Concealability

To be safe from social disorders, government confiscation, or unacceptable

levels of taxation, property must be concealable and leave no record of
income received from its use or sale. Gold and precious stones have long
been esteemed for this purpose because they combine high value with
small bulk and are readily transferable.

INCREASE POPULARITY OF INVESTMENTS

Investing has been an activity confined to the rich and business class in the
past. This can be attributed to the fact that availability of investible funds is
a pre-requisite to deployment of funds. But, today, we find that investment
has become a household word and is very popular with people form all
walks of life.

Increase in popularity of investments can be attributed to the

following factors:

1. increase in working population, larger family incomes and consequent

higher savings;
2. Provision of tax incentives in respect of investment in specified channels;
3. Increase in tendency of people to hedge against inflation;
4. Availability of large and attractive investment alternatives;
5. Increase in investment related publicity;
6. Ability of investments to provide income and capital gains, etc.

EQUITY SHARES

Equity represents an ownership position in a corporation. It is a residual

claim, in the sense that creditors and shareholders must be paid as
scheduled before equity shareholders can receive any payment. In
bankruptcy equity holders are in principle entitled only to assets remaining
after all prior claimants have been satisfied. Thus, risk is highest with equity
shares and so must be its expected return. When investors buy equity
shares, they received certificates of ownership as proof of being owners of
company. The certificate states the number of shares purchased and their
par value.

ADVANTAGES OF EQUITY SHARES:

1. Potential for Profit

The potential for profit is greater in equity share than in any other
investment security. Current dividend yield may be low but potential of
capital gain is great. The total yield or yields to maturity may be substantial
over a period of time.
2

Limited Liability

In corporate form of organization, its owners have, generally, limited liability.

Equity Share is usually fully paid. Shareholders may lose their investment,
but no more. They are not further liable for any failure on the part of the
corporation to meet its obligation.

3. Hedge Against Inflation

The equity share is a good hedge against inflation though it does not fully
compensate for the declining purchasing power as it is subject to the
money-rate risk. But, when interest rates are high shares tend to be less
attractive, and prices tend to depress.

4. Free Transferability

The owner of shares has the right to transfer his interest to someone
elese.The buyer should ensure that the issuing corporation transfers the
ownership on its books so that dividends, voting right and other privileges
will accrue to the new owner. Although the individual has the right to sell his
shares, there is little or no trading in the shares of many corporations due to
the lack of interested buyers. For this reason, equity shares of many small
businesses are nonliquid and difficult to market.
5. Share in Growth

The major advantage of investment in equity shares is its ability to increase

in value by sharing in the growth of company profits over the long run.

6. Tax Advantages

Equity shares also offer tax advantages to the investor. The larger yield on
equity shares results from an increase in principal or capital gains which are
taxed at lower rate than other incomes in most of the countries.

BOND

Bond is a loan. The loans can be from

1 the federal government,
2 a federal agency,
3 municipality or
4 corporation .
At the time of purchase of bonds we are lending our money to whom we
buy the bonds from. As return on our money, fixed rate of interest has been
paid over a set period of time. When the bond matures the investors money
is usually returned with the earned interest included. Bonds are like stocks
because they are both traded. Therefore you can buy the bonds after they
are originally issued while at the same time you can sell bonds before they
mature.
At the time of issue of bond the persons are promised to get their money
back. Bonds give income based on their rate of return. Bonds are usually
much less volatile than stocks. Some of Bonds are taxfree.

Types of Bonds:
1 Convertible Bonds
1 Fixed rate Bonds
1 Floating-rate bonds
1 High-yield bonds
1 Zero-coupon bonds
1 Subordinated

INSURANCE

Insurance is a contract between two parties where by one party

called insurer undertakes in exchange for a fixed sum called
premiums, to pay the other party called insured a fixed amount of
money on the happening of a certain event.

WHY PEOPLE GO FOR INSURANCE

To ensure continuity of income

To pay off any debt left behind

To provide liquidity to ones assets

To create an asset for ones heirs

A great investment vehicle

Types of Insurance
1

Life insurance

General Insurance

LIFE INSURANCE is one such service product.

Life insurance provides financial protection to your family against risks and
unfortunate events.

Life insurance provides for your family exactly when they need it most.

Life insurance ensures that even if you are not around to save, your goals and
aspirations are met.

Life insurance forces you to save regularly.

Life insurance provides returns on your savings.

MUTUAL FUND

What is a Mutual fund?

A Mutual Fund is a trust that pools the savings of a number of investors
who share a common financial goal. The money thus collected is
invested by the fund manager in different types of securities depending
upon the objective of the scheme. These could range from shares to
debentures to money market instruments. The income earned through
these investments and the capital appreciations realized by the scheme
are shared by its unit holders in proportion to the number of units owned
by them (pro rata). Thus a Mutual Fund is the most suitable investment
for the common man as it offers an opportunity to invest in a diversified,
professionally managed portfolio at a relatively low cost. Anybody with an
inventible surplus of as little as a few thousand rupees can invest in
Mutual Funds. Each Mutual Fund scheme has a defined investment
objective and strategy.

A brief history of Mutual funds in India

The origin of mutual fund industry in India is with the introduction of the
concept of mutual fund by UTI in the year 1963. Though the growth was
slow, but it accelerated from the year 1987 when non-UTI players
entered the industry.
In the past decade, Indian mutual fund industry had seen dramatic
improvements, both quality wise as well as quantity wise. Before, the
monopoly of the market had seen an ending phase; the Assets under
Management (AUM) were Rs. 67bn. The private sector entry to the fund
family raised the AUM to Rs. 470 bn in March 1993 and till April 2004; it
reached the height of 1,540 bn.
Putting the AUM of the Indian Mutual Funds Industry into comparison,
the total of it is less than the deposits of SBI alone, constitute less than

11% of the total deposits held by the Indian banking industry.

The main reason of its poor growth is that the mutual fund industry in
India is new in the country. Large sections of Indian investors are yet to
be intellectuated with the concept. Hence, it is the prime responsibility of
all mutual fund companies, to market the product correctly abreast of
selling.
The mutual fund industry can be broadly put into four phases according
to the development of the sector. Each phase is briefly described as
under.
First Phase - 1964-87
Unit Trust of India (UTI) was established on 1963 by an Act of
Parliament. It was set up by the Reserve Bank of India and functioned
under the Regulatory and administrative control of the Reserve Bank of
India. In 1978 UTI was de-linked from the RBI and the Industrial
Development Bank of India (IDBI) took over the regulatory and
administrative control in place of RBI. The first scheme launched by UTI
was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700 crores of
assets under management.
Second Phase - 1987-1993 (Entry of Public Sector Funds)
Entry of non-UTI mutual funds. SBI Mutual Fund was the first followed by
Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug
89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of
Baroda Mutual Fund (Oct 92). LIC in 1989 and GIC in 1990. The end of
1993 marked Rs.47, 004 as assets under management.

Third Phase - 1993-2003 (Entry of Private Sector Funds)

With the entry of private sector funds in 1993, a new era started in the
Indian mutual fund industry, giving the Indian investors a wider choice of
fund families. Also, 1993 was the year in which the first Mutual Fund
Regulations came into being, under which all mutual funds, except UTI
were to be registered and governed. The erstwhile Kothari Pioneer (now
merged with Franklin Templeton) was the first private sector mutual fund
registered in July 1993.
The 1993 SEBI (Mutual Fund) Regulations were substituted by a more
comprehensive and revised Mutual Fund Regulations in 1996. The
industry now functions under the SEBI (Mutual Fund) Regulations 1996.
The number of mutual fund houses went on increasing, with many
foreign mutual funds setting up funds in India and also the industry has
witnessed several mergers and acquisitions. As at the end of January
2003, there were 33 mutual funds with total assets of Rs. 1, 21,805
crores. The Unit Trust of India with Rs.44, 541 crores of assets under
management was way ahead of other mutual funds.
FourthPhase - since February 2003
This phase had bitter experience for UTI. It was bifurcated into two
separate entities. One is the Specified Undertaking of the Unit Trust of
India with AUM of Rs.29,835 crores (as on January 2003). The Specified
Undertaking of Unit Trust of India, functioning under an administrator and
under the rules framed by Government of India and does not come under
the purview of the Mutual Fund Regulations.

The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB
and LIC. It is registered with SEBI and functions under the Mutual Fund
Regulations. With the bifurcation of the erstwhile UTI which had in March
2000 more than Rs.76,000 crores of AUM and with the setting up of a
UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and
with recent mergers taking place among different private sector funds,
the mutual fund industry has entered its current phase of consolidation
and growth.

OBJECTIVE
OF
THE PROJECT

OBJECTIVE

(1) To find out whether people like to invest in mutual fund or not. If not then
what is the reason for that.

(2) To find out whether people like to invest in shares or not. If not then what
is the reason for that.

(3) To find out the preferred option for investment on the basis of income
group and what they like first before investment.

Importance of
the study

IMPORTANCE OF THE STUDY

The business management courses are insufficient to solve all the
problems arising in practical field. There is no any shortcut way to solve
management problems coming out of concern. The aim of This project is
to develop the ability of correct decision making. A correct decision cut
the right moment itself is an added advantage for any problem arising out
on regular basis.
The ultimate purpose of giving me this topic was to know about the
customers perceptions about the different products of the bank, how
these products can attract them and how the investor can generate
maximum profit by convincing them through investing money.
Investment funds are available
The policy is fully unitised with a range of funds to match your needs and
approach to risk. (By risk we mean the likely volatility in the value of units
in the fund.) Each investment fund is composed of units. All the units in a
fund are identical. You can choose from the following funds:

Liquid fund

The Liquid fund invests 100% in bank deposits and high quality shortterm market instru ments. The fund is designed to be cash secure and
has a very low level of risk; however unit prices may occasionally go
down due to the use of short-term money market instruments. At
inception, investments up to 20% can be allocated to this fund.
Secure Managed
The Secure Managed fund invests 100% in Government Securities and
Bonds issued by companies or other bodies with a high credit standing,
however a small amount of working capital may be invested in cash to
facilitate the day-to-day running of the fund. This fund has a low level of
risk but unit prices may still go up or down.
Defensive Managed
15% to 30% of the Defensive Managed fund will be invested in high
quality Indian equities. The remainder will be invested in Government
Securities and Bonds issued by companies or other bodies with a high
credit standing. In addition, a small amount of working capital may be
invested in cash to facilitate the day-to-day running of the fund. The fund
has a moderate level of risk with the opportunity to earn higher returns in
the long term from some equity investment. Unit prices may go up or
down.
Balanced Managed
30% to 60% of the Balanced Managed fund will be invested in high
quality Indian equities. The remainder will be invested in Government

Securities and Bonds issued by companies or other bodies with a high

credit standing. In addition a small amount of working capital may be
invested in cash to facilitate the day-to-day running of the fund.

Scope of the study

Scope of study
The study has been carried out in Noida selecting a sample of 100 people
(Shopkeepers). The aim of the study was to analyse Peoples perception
regarding different investment instruments e.g. Mutual Fund, Equity Shares
etc. An attempt was made to understand the Investment behaviour with the
help of Investors as well as Firm. This can be done at rural area also.

The role of research in several fields of applied economies, whether

related to business or to the economy as a whole, has greatly increased
in modern times.A Research Project is a medium to search optimum
solution to the part of a major existing problem. Often it is done for
anticipating the future. In business scenario a research is a crucial part of
management functioning
The Scope of the Research study would include the Geographic &
Demographic region.
Each and every project study along with its certain objectives
also have scope for future. And this scope in future gives to new
researches a new need to research a new project with a new scope.
Scope of the study not only consist one or two future business plan but

sometime it also gives idea about a new business which becomes much
more profitable for the researches then the older one.
Scope of the study could give the projected scenario for a new
successful strategy with a proper implementation plan. Whatever scope I
observed in my project are not exactly having all the features of the
scope which I described above but also not lacking all the features.

Business strategy emphasizes the following :

Increase market share in Indias expanding banking

and

financial services industry by following a disciplined growth

strategy focusing on quality and not on quantity and delivering
high quality customer service.
Leverage our technology platform and open scaleable systems to
deliver more products to more customers and to control
operating costs.
Maintain

current

high standards

for asset

quality

through

disciplined credit risk management.

Develop
targeted

innovative products and services that attract the

customers

financial sector.

and

address

inefficiencies in the Indian

 Continue to develop products and services that reduce banks cost

of funds.
Focus on high earnings growth with low volatility.

Research
Methodology

RESEARCH PROCESS

The Marketing Research Process

Defining The Research
Objective

Develop The Research Plan

Collect The Information

Analyzing The Information

Interpreting The Final

Result

DATA ANALYSIS
&
INTERPRETATION

Table-1

Purpose of investment

SECURITY
RETURN
TAX BENEFIT

60%
30%
10%

GRAPH 1
TAX
BENEFIT
10%
RETURN
30%

SECURITY
60%

SECURITY
RETURN
TAX BENEFIT

Interpretation:

The above table and graph shows that the security is the main purpose of
the different investors.
1 60% people make investment for the purpose of security,
2 30% people like to invest for high return
3 Only 10% people want tax benefit.

Table-2
Most Preferred option for investment
BANK FDs

48%

PPF/NSC
BONDS
INSURANCE
MUTUAL FUND
SHARES

8%
5%
30%
4%
5%

GRAPH 2
48%
30%
5%

4%

5%

BO
ND
IN
S
SU
R
AN
M
C
UT
E
UA
L
FU
ND
SH
AR
ES

PP
F/

BA
NK

NS
C

8%

FD
s

60%
50%
40%
30%
20%
10%
0%

Interpretation:
The above table and graph is presenting the preferred option of different investors.
This table and graph shows as:

1 48% people want security to invest in bank

2 8% people prefer PPF/NSC
3 5% people prefer Bonds
4 30% people prefer Insurance
5 4% people prefer Mutual Fund
6 5% people like Shares investment
So Bank and insurance is the most preferred option for investment, where
their money is more secured. People want security of their money thats
why they go for invest in bank and insurance mostly

Table-3
Various Plan under insurance
TERM PLAN
ENDOWMENT PLAN
MONEY BACK PLAN
PENSION PLAN
MEDICLAIM PLAN

23%
25%
35%
7%
10%

GRAPH 3
10%

TERM PLAN
23%

7%

35%

ENDOWMENT
PLAN
MONEY BACK
PLAN
PENSION PLAN
25%
MEDICLAIM PLAN

Interpretation:

The above table and graph indicates the various plan under insurance. This
table indicates that most of the people have invested in Term Plan,
Endowment Plan and Money Back Plan.
1 Near about 85% people have invested their money in these three
plans.
2 In Table-1 we find out that 50% people wants security of their money
and insurance is a very-very preferred option for investments.

Table - 4

Guidance Preference
INVESTMENT CONSULTANT

30%

BANK
AGENTS

45%
25%

GRAPH 4

25%

30%

INVESTMENT
CONSULTANT
BANK
AGENTS

45%

Interpretation:
The above table is showing the preferred option for guidance of the
different investors. This is clear from the table and graph that:
1 30% people prefer the guidance of the investment consultant.
2 45% people prefer banks as guider
3 25% people think agents as their best guider

The reason being that the different persons have their own mind setup.

Table-5

Investors Perception Regarding the Shares

LACK OF KNOWLEDGE
RISKY
NOT INTERESTED
NO FUND & TIME
LACK OF GUIDANCE

20%
31%
25%
16%
8%

GRAPH 5
8%

20%

16%

LACK OF
KNOWLEDGE
RISKY
NOT INTERESTED
NO FUND & TIME

25%

31%

LACK OF
GUIDANCE

Interpretation:
The Table-5 is indicating the investors perception regarding the shares.
It is very clear from the table that most of the people are afraid of shares
and they think those risky.
Also when asked about reason many of them answers in not interested.
There are more chances of increase in the investment in shares in the near
future as person are now want to go for that.

Table-6

Perception Regarding Mutual Fund

LACK OF KNOWLEDE
RISKY
LACL OF GUIDANCE
LACK OF INTEREST
NO FUND

45%
10%
17%
13%
15%

GRAPH 6
LACK OF
KNOWLEDE
RISKY

15%
13%

45%

17%
10%

LACL OF
GUIDANCE
LACK OF
INTEREST
NO FUND

Interpretation:
The above table shows the peoples perception regarding the mutual fund.
1 From the above table that most of the people have not so much
knowledge regarding the MF. Around 50% people ask about Mutual
Fund.
2 But MF is not think so much risky in comparsion to the shares.

Table-7
Whether people invest in Mutual Funds
YES
NO

5%
95%

GRAPH 7
YES
5%

NO
95%
YES

NO

Interpretation:
The above table and graph shows that only 5% people make investment in
Mutual Funds.

Table-8

Perception regarding Mutual Fund based on Income Group

WHY NOT MUTUAL

INCOME DISTRIBUTION

FUND?
LESS THAN 1.5 TO
1.5 LAKH
LACK OF KNOWLEDGE
RISKY

MORE THAN

3 LAKH
3 LAKH
38%
60%
12%
9%

33%
6.5%

LACK OF GUIDANCE
NOT INTERESTED
LACK OF FUNDS

18%
12%
20%

11%
9%
11%

26%
26%
6.5%

GRAPH 8
70%
60%
50%

LESS THAN 1.5

LAKH
1.5 TO 3 LAKH

40%
30%

MORE THAN 3
LAKH

20%
10%

RI
SK
G
NO
Y
UI
D
T
A
IN
TE NC
LA
RE E
C
ST
K
ED
O
F
FU
ND
S

O
F
K

LA
C

LA
C

O
F

KN
O
W
LE

G
E

0%

Interpretation:
Table-8 indicates the perception of the investors relating to different income
group regarding Mutual Fund.
1 The reason is being lack of guidance and lack of interest.
2 The reason is being lack of knowledge for middle income group.
3 This table also indicates that these people interested in investing in
MF.

Table-9
Whether people invest in Shares
YES
NO

5%
95%

GRAPH 9
YES
5%
YES
NO
NO
95%

Interpretation:
The above table and graph shows that only 5% people make investment in
Shares.

Table-10
Perception regarding Shares based on different Income
Group
WHY NOT SHARES?

DISTRIBUTION OF INCOME
LESS
1.5 TO 3
MORE THAN

THAN 1.5 LAKH

LACK OF KNOWLEDE
26%
RISKY
20%
LACK OF GUIDANCE
4%
LACK OF INTEREST
30%
NO FUND
20%

3 LAKH
14%
43%
9%
20%
14%

GRAPH 10
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%

LESS THAN 1.5

1.5 TO 3 LAKH

Interpretation:

NO FUND

LACK OF
INTEREST

LACK OF
GUIDANCE

RISKY

LACK OF
KNOWLEDE

MORE THAN 3
LAKH

13%
40%
20%
20%
7%

The above table and graph shows the perception regarding the shares of
the different investors based on income group. It is clear from the above
table that
the investors whose income is less than 1.5 lakh
1 they have not so much funds with them to invest in shares.
2 most of the people think that it is too risky to invest in shares.
the investors whose income is more than 1.5 lakh
1 those people have also a perception in the mind that it is risky.

But if we put a sight on the current situation than we find that the stock
market is performing well, so there is more chances of increase in
investment in shares in near future.

Table-11
Preferred option for investment based on income group

OPTION

INCOME
LESS THAN 1.5

1.5 TO 3 LAKH MORE THAN 3

LAKH
BANK

LAKH
66%

37%

13%

PPF/NSC

2%

12%

20%

BONDS

2%

3%

20%

26%

42%

14%

MUTUAL FUND

2%

3%

13%

SHARES

2%

3%

20%

INSURANCE

GRAPH 11
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0

PP

BA

NK
F/
NS
C
B
IN O
S N
M UR DS
UT
A
UA NC
E
L
FU
SH ND
AR
ES

INCOME LESS
THAN 1.5
INCOME 1.5 TO
3 LAKH
INCOME MORE
THAN 3 LAKH

Interpretation:

The Table indicates the preferred option for investment of the different
investors based on income groups. It is quite clear form the above table that
investors, whose income is more than 3 lakh, they want to invest their
money in mutual fund and shares for high return. On the other hand
investors, whose income is less than 1.5 lakh, they are more concerned
about the security because they do not have so much money. Middle
income group wantboth security and return as a result they can take some
risk.

Table-12
Purpose of the Investor based on

Income Group
PURPOSE

INCOME
1.5 TO 3 LAC

LESS THAN 1.5

ABOVE 3 LAC

LAC
SECURITY
RETURN
TAX

70%
26%
4%

60%
31%
9%

BENEFIT

GRAPH 12
80%
70%
60%
50%
40%
30%
20%
10%
0%

SECURITY
RETURN
TAX BENEFIT

LESS THAN
1.5 LAC

1.5 TO 3
LAC

ABOVE 3
LAC

27%
40%
33%

Interpretation:
The Table and graph shows the purpose of investors based on income
group.
Investors whose income is above three lakhs,
1 they are more conscious about tax benefit rather than other groups.
2 They are also ready to take risk for high return.
Investors whose income is less than 1.5 lakhs,
4 they are more conservative and want only security of their money.
Investors whose income is between 1.5 to 3 lakhs
5 they want security as well as high return .

LIMITATION OF THE
STUDY

LIMITATION OF THE STUDY

Each and every study must have some limitations because no one is
sufficient in itself. So this study also have some limitations. Some of the
major are as follows:
The study area is only related to the investors of delhi only and sample
size may small only 100 shopkeepers.

The study is basically based on the Primary data and observation, the
possibility of the personal control be over ruled.

During study, it may be possible that the required source of information

is not available.

As manully analysis is done, so few error may be there even there are
lot of precautions.

Many of respondents were not ready to give exact information because

they feel lack of their secret.

RECOMMENDATIONS
&
SUGGESTION

RECOMMENDATIONS
Till Now, Indian market is in nascent stage. So there is lot of scope in that Industry.
So Company has to follow these recommendation & suggestion.

A lot of work is needed to spread awareness among people.

Advertising is the best tool to create awareness among the investors for
Mutual Fund and Shares e.g. presentations, print media, TV channels.

 Their must be full customer satisfaction.

Online Trading is necessary, so WAY2WEALTH must have to provide Dmat services.

Less government involvement as far as management is concerned

More awareness is required regarding the differences in various

schemes.
Fund houses should increase tie ups with more banks for direct credit

facility of the dividends.

Promote distributor for expansion of the Industry

CONCLUSION

CONCLUSION
During my research project, I improved my knowledge about the
marketing techniques, which is beneficial for my future. I got the
experience from different type of customer. However, after getting the
knowledge about the products as well as about the customers I can say
that
From the above study we can conclude that

1 Most of the people does not have any knowledge about Mutual Fund
2 When we talk with them about investment in shares or mutual funds
then they directly say that this is very much risky.
3 They are afraid of UTI scam.
4 Some peoples are ready for small investments in Mutual Fund
scheme e.g. SIP
5 Low income group like to security first due to that purpose they ignore
risky investment.
1 Most of them preferred that option in which they make investment
earlier.