Investment Avenues 16-8826

RESEARCH PROJECT ON
INVESTMENT AVENUES
BACHELOR OF MANAGEMENT STUDIES
SEMESTER V
2016-2017
SUBMITTED
IN PARTIAL FULLFILLMENT OF REQUIREMENT FOR THE AWARD OF

DEGREE OF BACHELOR OF MANAGEMENT STUDIES
GUIDED BY:
SACHIN VILAS ACHAREKAR
BY:
SMEET SUMANBHAI PATEL
SEAT NO 16-8826
K.J.SOMAIYA COLLEGE OF SCIENCE & COMMERCE
Re-accredited by NAAC with Grade A (Autonomous)
VIDYANAGARI, VIDYAVIHAR(E).
UNIVERSITY OF MUMBAI
2016 2017
K.J.SOMAIYA COLLEGE OF SCIENCE AND COMMERCE
Re-accredited by NAAC with Grade A (Autonomous)
(VIDYANAGAR, VIDYAVIHAR, MUMBAI 400 077)

(Affiliated by University of Mumbai)
BACHELOR OF MANAGEMENT STUDIES
CERTIFICATE
This is to certify that PATEL SMEET SUMANBHAI ,SEAT No. 16-8826 has satisfactorily
carried out the project work on the topic INVESTMENT AVENUES, for the V Semester
of T.Y.B.M.S., in the academic year2016-2017.
Place:-Vidyavihar (Mumbai)
Date:-____________
_____________________ _______________________ _________________

Signature of Project guide Signature of Course Incharge Signature of Principle
________________ ________________
Signature of Examiner BMS Coordinator
CERTIFICATE
I, MR. SACHIN VILAS ACHAREKAR hereby certify that MR. SMEET

SUMANBHAI PATEL of T.Y.B.M.S (Sem.V), SEAT No.16-8826 has completed project on
INVESTMENT AVENUES in the academic year 2016-2017. The information submitted
is true and original to the best of my knowledge.
Place: Vidyavihar (Mumbai)
Date:____________
______________________
Signature of Project Guide
DECLARATION
I, MR.SMEET SUMANBHAI PATELstudent of T.Y.B.M.S semester V (2016-

2017) hereby declare that I have completed the project on INVESTMENT AVENUES I
further declare that the information imparted is true and fair to the best of my knowledge.
(MR.SMEET SUMANBHAI PATEL)

SEAT NO. 16-8826
ACKNOWLEDGEMENT
I hereby express my heartiest thanks to all sources who have contributed to the
making of this project. I oblige thanks to all those who have supported, provided their
valuable guidance and helped for the accomplishment of this project. I also extent my hearty
thanks to my family, friends, college teachers and all the well-wishers.
I also would like to thanks my project guide MR. SACHIN VILAS ACHAREKAR
for his guidance and timely suggestion and the information provided by him on this particular
topic.
It is matter of outmost pleasure to express my indebt and deep sense of gratitude to

various person who extended their maximum help to supply the necessary information for the
present thesis, which became available on account of the most selfless cooperation.
Above all its sincere thanks to the UNIVERSITY OF MUMBAI for which this
project is given consideration and was done with outmost seriousness.
Executive summary
I have great pleasure in presenting my project to the Mumbai University, as my topic

is INVESTMENT AVENUES. I have made sincere efforts to make this project informative
and I am sure it would justify the same.
As the title of the project suggest the main aim of project is to find out needs of the
current and future investors and also to understand in depth about different investment
avenues in India.
The project gives an introduction to the concept investment avenues. Further project
gives introduction of various types of investment alternative available to investors.
INVESTMENT AVENUE
Contents
Sr. Page
Particulars
No. No.
1 INTRODUCTION
1.1 Introduction to Investment 1
1.2 Introduction to Investment Avenue 2
1.3 Objective of Study 5
1.4 Scope of Study 6
1.5 Limitation of Study 7
2 LITERATURE REVIEW 8
3 RESEARCH METHODOLOGY
3.1 Primary Data 10
3.2 Secondary Data 10
4 INVESTMENT AVENUE 11
5 DATA ANALYSIS AND 38

INTERPRETATION
6 CONCLUSIONS 65
ANNEXURE
REFERENCE
Bibliography
Webliography
CHAPTER 1:
INTRODUCTION
INVESTMENT AVENUE IN INDIA
Chapter 1: Introduction
1.1 Introduction to Investments:
An investment is an asset or item that is purchased with the hope that it will generate
income or appreciate in the future. In an economic sense, an investment is the purchase of goods
that are not consumed today but are used in the future to create wealth. In finance, an investment
is a monetary asset purchased with the idea that the asset will provide income in the future or
appreciate and be sold at a higher price.
An investment involves the choice by an individual or an organization such as

a pension fund, after some analysis or thought, to place or lend money in a vehicle, instrument or
asset, such as property, commodity, stock, bond, financial derivatives (e.g. futures or options), or
the foreign asset denominated in foreign currency, that has certain level of risk and provides the
possibility of generating returns over a period of time.When an asset is bought or a given amount
of money is invested in the bank, there is anticipation that some return will be received from the
investment in the future.
In its broadest sense, an investment is a sacrifice of current money or other resources for
future benefits. Numerous avenues of investment are available today. You can deposit money in
a bank account or purchase a long-term government bond or invest in the equity shares of a
company or contribute to a provident fund account or buy a stock option or acquire a plot of land
or invest in some other form.
1
1.2 Introduction to Investment avenues:
Bewildering range of investment avenues is available. They fall into broad categories that
are financial assets and real assets. Financial assets are paper claims on some issues such as
government or corporate debentures, government securities, deposits with banks, mutual fund
shares, insurances policies and derivative instruments.
Real estate and precious object are represented by tangible assets like residential house,
commercial property, agriculture farm, gold precious stones and art objects. As the economy
advances, the relative importance of financial assets tends to increase. Of course, by large the
two forms of investments are complementary and not competitive.
Although the discussion is fairly up to date, the rapid changes in the world of investments
lead to the creation of new investment avenues. If you understand the basic characteristics of
major investment avenues available, you will have the background to understand new
alternatives as they appear.
Different types of Investment Avenues are as follows:
1. Deposits:
A good portion of the financial assets of individual investors is held in the form of
deposits like bank deposits, post deposits, company deposits.
A distinguish feature of these asset is that they represent personal transactions between
the investor and the issuer. For example when you open a saving account at a bank, you deal
with the bank personally. In contrast when you buy equity shares in the stock market you do not
know who the seller is and you dont much care.
2. Government Saving Schemes:
Government of India offers a number of small saving schemes to individual investors.

These schemes are offered through the post office and selected banks. The important saving
schemes are Public Provident Fund, Senior Citizens saving scheme and National Saving
certificate. Though interest rates on these schemes are fixed at present, the government
eventually links them to some market related benchmark rates.
2
3. Debt Instruments:
Debt Instruments are obligation of issuer of such instrument as regards certain future cash
flow representing Interest & Principal, which the issuer would pay to the legal owner of the
Instrument. Debt Instruments are of different types like Bonds, Debentures, Commercial Papers,
Certificates of Deposit, Government Securities etc. The Government Securities market is the
oldest and the largest element of the Indian debt market in terms of market capitalization, trading
volumes and outstanding securities. The Government Securities market plays a very important
role in the Indian economy as it provides the benchmark for determining the level of interest
rates in the country through the yields on the government securities which are treated as the risk-
free rate of return in any economy.
4. Equity Shares:
Equity Capital represents ownership capital. Equity shareholders collectively own the
company. They bear the risk and enjoy the rewards of ownership. Of all the forms of securities,
equity shares appear to be the most romantic. While fixed income investment avenues may be
more important to most of the investors, equity shares seem to capture their interest most. The
potential rewards and penalties associated with equity shares make them an interesting, even
exciting proposition. No wonder, equity investment is a favorite topic of conversation in parties
and get-together.
5. Mutual Fund Scheme:
A mutual fund represents a vehicle for collective investment. When you participate in a
scheme of a mutual fund, you become a part-owner of the investments held under that scheme.
This instrument is mostly used by the people who find it difficult to invest directly in equity
share so they indirectly invest in equity market through mutual funds scheme.
6. Insurance Product:
The basic investor needs met by life insurance policies are protection and savings.
Policies that provide protection benefits are designed to protect the policyholder or his
dependents from financial consequence of unwelcome events such as death or long-term sickness
or disability. Policies that are designed as saving contracts allow the policyholder to build up
funds to meet specific investment objectives such as income in retirement or repayment of a
loan.
3
The retirement products are divided into two broad categories which ismandatory
retirement schemes and voluntary retirement schemes. Mandatory retirement scheme are those
schemes where employees are made compulsory to invest for example EPF, EPS etc. and
Voluntary retirement schemes where investors think of his/her retirement and subscribe
voluntarily to provide retirement benefit. Deferred annuity and immediate annuity plan is an
example of a voluntary retirement schemes.
8. Real Estate:
For the bulk of the investors, the most important asset in their portfolio is a residential house. In
addition to a residential house, the more affluent investors are likely to be interested in the
following types of real estate.
Semi-urban Land
A secondary house
Commercial Property
Agricultural land
Historically, real estate in India has been financially the most rewarding asset class.
9. Precious Objects:
Precious objects in general are valuable objects that are physically not voluminous. The
major types of precious objects are gold, silver, diamonds etc.
10. Financial Derivatives:
A derivative is an instrument whose value depends on the value of some underlying asset.
Hence, it may be viewed as a side bet on that asset. From point of view of investors and portfolio
managers, futures and options are two most important financial derivatives. They are used for
hedging and speculation.
4
1.3 Objective of Study:

1. The main objective of the project is to find out needs of the current and future investors.
2. To understand in depth about different investment avenues available in India.
3. To find out how investors get information about various financial instruments.
4. To find out different types of investments investors prefer most.
5. To find out, what are the factors investors consider before investing?
6. To find out the duration for which they would prefer to keep their money invested.
8. To know the risk tolerance level of the individual investor.
9. To identify the objective of saving of an investor.
5
1.4 Scope of Study:
Stock market has been subjected to speculations and inefficiencies, which are beached to
the rationality of the investor. Traditional finance theory is based on two assumptions, firstly
investors make rational decisions and secondary investors are unbiased in their predictions about
future returns of stock. However financial economist have now realized that long held
assumptions of traditional finance theory are wrong and found that investors can be irrational and
make predictable errors about the return on investment on their investments.
The analysis on individual investors behavior is an attempt to know the profile of the
investor and also know the characteristics of the investors so as to know their preference with
respect to their investment. The study also tries to unravel the influence of demographic factors
like age on risks tolerance level of the investor.
This research will be originated to empower the investors with detailed research on
various INVESTMENT AVENUES available in India. To bring awareness to the investors about
the various investment options and what is perception of the investors with regard to investments
they want to make.
This research will help investors the techniques and principles useful in systematic and
systematic and rational investment management. It seeks to improve your abilities in the field of
investments.
6
1.5 Limitation of Study:
1. An analysis is based on primary as well as secondary data; possibility of unauthorized
information cannot be avoided.
2. The information can be biased due to use of questionnaire.
3. The total number of financial instruments in the market is so large that it needs a lot of
resources to analyze them all. Hence handling and analyzing such a varied and diversified data
needs a lot of time and resources.
4. The lack of knowledge of people about financial instruments can be major limitation as
financial literacy rate in India is only around 24%.
5. Reluctance of the people to provide complete information about them can affect the validity of
responses.
7
CHAPTER 2:
LITERATURE
REVIEW
Chapter 2: LITERATURE REVIEW
Every individual investor must follow three principles of investing: using a long-term
investing approach, following the right strategy to maximize the return on investment and proper
allocation of investible funds. While applying these three principles, an individual investor has to
confront his/her demographics, lifestyle and investment psychology. Whether the investor's age
or occupation or family income has a role of play in making choice of investment avenues? Is the
investor choice affected by his overconfidence, reference group and framing of the available
alternatives? The knowledge of all these aspects is imperative for all progressive investors,
researchers, financial consultants, academicians, students and the marketer of the financial
product.
1. M.Sellan-Senior Lecturer in Commerce-Cuddalore(2007) in his study entitled as A study on

avenues available for investment at cuddalore town in his study he Portrayed the behavior of
teaching professionals at college level in terms of planning their investment. He has taken
salaried class in general and also study and analyzed of investment behavior of teaching
professionals, examined the popularity of different types of investment avenues, found the
factors that motivate to invest by the individual investor such as tax avoidance, good return with
less risk, safety, marketability etc.,
2. Sir SushantNagpal in his paper Psychology of Investment and Investors Preferences in

2007 he discusses the basic of investment and need for investment. Investment benefits both
economy and the society. It is an outgrowth of economic development and the maturation of
modern capitalism. In the long term, current investment determines the economy's future
productive capacity and, ultimately, a growth in the standard of living. By increasing personal
wealth, investing can contribute to higher overall economic growth and prosperity.
3. Miss Madhumathi R. in her study Risk Perception of Individual Investors and its Impact
on their Investment Decisions in the year 1998 she examined the risk perception of 450
individual investors, selected at random from major metropolitan cities in India, dividing them
into three groups as risk seekers, risk bearers and risk avoiders. The major findings of the study
revealed that majority of the investors were risk bearers and they had the tendency to use the
companys performance as a basic factor to take investment decisions. They also depend on the
8
advice of share brokers and investment consultants. The risk seekers generally took decisions
based on market conditions, industrial positions and social changes. They relied on newspapers
and reports for information. Risk avoiders did not have any specific traits. They were very
objective and looked for facts and certainty in their investment decisions. They relied on the
advice of their friends and relatives.
4. Dr. V.L. Shobhana and J.J Jayalakshmi in theirstudyInvestors Awareness and Preferences
they has examined the level of investor awareness regarding investment options and investment
risks. The analysis revealed that the investment in real estate is preferred by a majority of the
respondents. The second most preferred investment is bank deposits. Awareness about
investment options and risks are high among aged, highly educated and those who are
professionals by occupation. Demographic variables such as age and education do not have
significant influence over investors awareness whereas difference in occupational status leads to
difference in the awareness level of Investors.
5. Arul Stephan and Dr. V. Darling Selvi in their studyInvestment Avenues for Senior
Citizens they stated that it is necessary on the part of the elders to find a definite source of
income for themselves. The senior citizens have various alternative avenues of investments for
their savings in accordance to their preference. A definite idea about investment will provide
senior citizens a steady income which helps them in the phase of rising cost in future. Hence, it is
the need of the hour for the elders to think and act wisely in their investment decision. As all the
investments are not equally good, awareness of various schemes and the privileges of the aged
will help them to select the best suitable investment avenue.
9
CHAPTER 3:
RESEARCH
METHODOLOGY
Chapter 3: RESEARCH METHODOLOGY
3.1 Primary Data:
Information is collected by conducting a survey by distributing a questionnaire to more

than 100 investors in diversified area. These investors are of different age, different occupation,
different income levels and different qualifications. A copy of the questionnaire is given at last in
Annexure.
Initially, a rough draft was prepared by keeping in mind the objective of the research. A
pilot study was undertaken in order to know the accuracy of the questionnaire. The final
questionnaire was arrived at only after certain important changes are incorporated. The selections
of units from the population were based on their easy availability and accessibility the researcher
which is known as convenience sampling. Convenience sampling is at its best in surveys dealing
with an exploratory purpose for generating ideas and hypothesis.
The respondents who were asked to fill out the questionnaires are the sampling units.
These comprise of the employees of MNCs, government employees, housewives, self-
employed, professionals and other investors.
The sample size was around 100 which comprised of people from different regions and
professions.
3.2 Secondary Data:
The secondary data is collected by using investment magazines, reference books, expert
opinion published in various print media, data available on Internet through various websites etc.
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CHAPTER 4:
INVESTMENT
AVENUES
Chapter 4: Investment Avenues
Wide varieties of investment avenues are now available in India. An investor can select
the best avenue after studying the merits and demerits of different avenues. Even financial
advertisements, newspaper supplements on financial matters and investment journals offer
guidance to investors in the selection of suitable investment avenues.
Investment avenues are the outlets of funds. A bewildering range of investment
alternatives are available, they fall into two broad categories, viz, financial assets and real assets.
Financial assets are paper (or electronic) claim on some issues such as the government or a
corporate body. The important financial assets are equity shares, corporate debentures,
government securities, and deposit with banks, post office schemes, mutual fund shares,
insurance policies and derivative instruments. Real assets are represented by tangible assets like
residential house, commercial property, agricultural farm, gold, precious stones, and art object.
As the economy advances, the relative importance of financial assets tends to increase. Of
course, by and large the two forms of investments are complementary and not competitive.
Investors are free to select any one or more alternative avenues depending upon their
needs. All categories of investors are equally interested in safety, liquidity and reasonable return
on the funds invested by them. In India, investment alternatives are continuously increasing
along with new developments in the financial market.
Investment is now possible in corporate securities, public provident fund, mutual fund
etc. Thus, wide varieties of investment avenues are now available to the investors. However, the
investors should be very careful about their hard earned money. An investor can select the best
avenue after studying the merits and demerits of the following investment alternatives:
1.Deposits:
A deposit is money placed with some other entity. It is a credit for the party who placed
it, and it may be taken back (withdrawn), transferred to some other party, or used for a purchase.
It is often used with respect to banks, where deposits are usually their main source of funding.
A good portion of the financial assets of individual investors is held in the form of deposits like
bank deposits, post deposits, company deposits.
11
Banks are called custodians of public money and mobilization of the deposits from the
public is the most important function of the commercial banks. Mainly, there are two types of
deposits viz. Time Deposits and Demand Deposits. Types of deposits accounts are as follow:
I. Time Deposits: When money is deposited with tenure, it cannot be withdrawn before
its maturity fixed at a particular time. Such deposits are called Time deposits or Term
deposits. The most common example of Time deposits is Fixed Deposit. All time
deposits are eligible for interest payments. Interest rate depends upon the tenure and
amount of deposit. This rate varies from bank to bank. The interest rate is generally
higher for time deposits of longer tenure. On the basis of their nature, time deposits may
be of three types as follows:
1) Fixed deposits: A fixed rate of interest is paid at fixed, regular intervals.
2) Re-investment: Interest is compounded quarterly and paid on maturity, along with the
principal amount of the deposit. In the Flexi Deposits amount in savings deposit
accounts beyond a fixed limit is automatically converted into term-deposits.
3) Recurring deposits: Fixed amount is deposited at regular intervals for a fixed term
and the repayment of principal and accumulated interest is made at the end of the
term. These deposits are usually targeted at persons who are salaried or receive other
regular income. A Recurring Deposit can usually be opened for any period from 6
months to 120 months. Further, banks also provide a combination of demand and
time deposits in the form of various products. Examples of such products include
Recurring Deposits, Flexible RDs, Multiplier FDs, Special Term deposit accounts etc.
II. Demand Deposits: If the funds deposited can be withdrawn by the customer (depositor /
account holder) at any time without any advanced notice to banks; it is called demand
deposit. One can withdraw the funds from these accounts any time by issuing cheque,
using ATM or withdrawal forms at the bank branches. The money as demand deposit is
liquid and can be enchased at any time. The ownership of demand deposits can be
transferred from one person to another via cheque or electronic transfers. There is no
fixed term to maturity for Demand Deposits. The demand deposits may or may not pay
interest to the depositor. For example, while we get an interest on savings accounts; no
interest is paid on current accounts. As mentioned above, there are two types of demand
deposits viz. savings accounts and current accounts.
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1) Current Account: A current account is always a Demand Deposit and the bank is
obliged to pay the money on demand. The Current accounts bear no interest and they
account for the smallest fraction among the current, saving and term deposits. They
provide the convenient operation facility to the individual / firm. The cost to maintain
the accounts is high and banks ask the customers to keep a minimum balance.
2) Saving Accounts: Savings deposits are subject to restrictions on the number of
withdrawals as well as on the amounts of withdrawals during any specified period.
Further, minimum balances may be prescribed in order to offset the cost of
maintaining and servicing such deposits. Savings deposits are deposits that accrue
interest at a fixed rate set by the commercial banks.
2. Government Saving Schemes:
Saving anything (money mostly) can be considered part of the Indian tradition that
attributes to responsible and cultured living. The point wherein an individual earns his/her first
salary and opens up a small savings account, the person is considered to be all grown-up and
many shades better than his/her careless, spendthrift and antisocial self from the teenage and late
adolescent years. Why must you subscribe to saving schemes in India?
The Indian government, through both the public and private sector banking system, offers
a multitude of saving schemes that are easy to enroll with and are perfectly suited for the
strategic as well as casual investor. Their simplicity and abundance makes them a much
preferred savings option.
Quite opposite to the run and burn concept, long term savings are focused on a time in the
future when abundant monies will be required to comply with an expected requirement.
Retirement, marriage of a son/daughter, long awaited foreign trip, etc. demand strategic, long
term financial planning.
India, saving schemes includes a plethora of different products that are intended for a
wide segment of potential customers. From the Public Provident Fund (employed- retirement
fund) and Employee Provident Fund to KissanVikasPatra (Agriculturists) and
SukanyaSamriddhiYojana (exclusively for the girl child), the choices are many and super
specialised.
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Limited documentation, clearly defined procedures and the Indian Governments backing
ensures that these saving schemes are simple to opt for and safe to be locked onto.
Types of Government Saving Schemes available in India are as follows:
1. Public Provident Fund (PPF):
A potent financial instrument that is tuned at savings in general and tax savings in particular,
the PPF concept was floated by the National Savings Institute, Finance Ministry of India, in
1968. The PPF scheme offers a plethora of features and benefits that make it a popular option in
its class. Some of its features are as follows:-
Interest rate of 8.70% p.a is compounded annually.
Minimum yearly investment of just Rs.500 to a maximum of Rs.1, 50,000.
The maturity period of a PPF account is 15 years. However, this can be extended for up
to 5 additional years.
A maximum of 12 deposits can be made in a financial year. Lump sum payments are also
an option.
Joint accounts arent possible, plus, PPF accounts cannot be closed before the maturity
period.
PPF accounts can be moved from one bank/post-office to another.
Accumulated interest is completely tax free.
PPF accounts save tax under Sec. 80C of the IT Act.
Applicant can avail loan with the PPF account as collateral from the 3rd financial year.
2. Postal Office Saving Scheme:
In the Indian context, the legendary Indian Postal system has always played a key role in helping
inculcate the habit of financial savings amongst the Indian public. The local post office is seen as
more approachable (especially amongst the semi-urban and rural folks) and more customer
friendly in terms of higher returns and limited inherent procedures. The Post Office Saving
Schemes include a plethora of products that offer the reliability associated with a government run
savings portfolio, and the full-scale treatment that is characteristic of most high-end saving and
investment schemes in India. A fair list of such products is as follows-
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Post Office Savings Account

5 Years Post Office Recurring Deposit Account
Post Office Time Deposit Account
Post Office Monthly Income Account Scheme
Senior Citizens Saving Scheme
15 Years Public Provident Fund Account
National Savings Certificates (NSC)- 5 Years NSC (VIII Issue) and 10 Years NSC (IX
Issue)
KisanVikasPatra (KVP)
SukanyaSamriddhi Account
3. Senior Citizen Saving Scheme (SCSS):
This saving scheme option is exclusive to senior citizens in India. Ideally, the applicant
must be 60 years or more but those between the ages of 55-60 years, are retired or have opted for
VRS, can also apply, provided that the account is opened within one month of the receipt of their
retirement benefits. The salient features of SCSS are as follows-
Interest rate of 9.3% p.a, payable on any of the following dates in an year- 31st March,
30th June, 30th Sept and 31st December.
The tenure of a SCSS portfolio is 5 years.
The applicant can make only one deposit into the account. This amount should be in
multiples of Rs.1, 000 and must not exceed a maximum of Rs.15 lakhs.
The account can be transferred from one post office/bank to another.
The SCSS account can be closed prematurely, provided the applicant shells out 1.5% of
the deposit amount in the first year and 1.0% of the deposit amount in the second year.
Post the maturity of the account, the tenure can be extended for a further 3 years. After
completing 1 year of this extension period, the account can be prematurely closed without
any deductions.
TDS is deducted at source on the accumulated interest if the latter exceeds Rs.10,000 p.a.
SCSS accounts save tax as per the Section 80C of the Income Tax Act, 1961.
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4. KisanVikasPatra (KVP):
First launched in 1988, the KisanVikasPatra (KVP) is one of the premier and popular
saving scheme offering from the Indian Postal Department. This product has had a much cheered
history- initially successful, deemed a product that could be misused and thus terminated in
2011, followed by a triumphant return to prominence and popular consumption in 2014. The
salient features of KVP are as follows-
The grand USP- Money invested by the applicant doubles in 100 months (8 years, 4
months).
KVPs are available in the following denominations- Rs.1000, Rs.5000, Rs.10,000 and
Rs.50,000.
The minimum purchase value for the KVP is Rs.1000. There is no maximum limit.
KVPs are available at all departmental post offices across India.
These certificates can be prematurely enchased after 2 years from the point of issue.
KVPs can be transferred from one individual to another and from one post office to
another.
5.SukanyaSamriddhi Account
A premier saving scheme offering from the Indian Ministry of Finance, the
SukanyaSamriddhiYojana (SSY) Accounts are aimed at ensuring a bright future for the girl
children in India. This ambitious and resourceful scheme was launched by the honorable Prime
Minister of India, Mr. Narendra Modi, and has quickly emerged as a popular savings scheme that
aims to provide financial backing for a girl childs varied, lifelong aspirations. The thoughtful
features of this scheme are as follows-
Attractive interest rate at 9.2% p.a. This is in fact one of the highest rates of interest in its
class.
Account can be opened at any departmental post office or authorized banks in India.
The opening amount for the SSY account is Rs.1000. Thereafter, deposits can be made in
multiples of Rs.100. The minimum deposit into the account must amount to Rs.1000, the
maximum limit is Rs.1, 50,000 per year.
The SSY account attains maturity in 21 years from the date of issue. However, the
account holder is expected to pay into the account for a total duration of 14 years.
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A SSY account can be transferred from one post office/bank to another, anywhere in
India.
6. Employee Provident Fund (EPF)
Administered by the Employees' Provident Fund Organization (EPFO), the Employee

Provident Fund (EPF) targets Indian workers through a system of compulsory monetary
contribution into a specified provident fund account that will act at a later date as their
retirement fund, or could also be treated as emergency funds for unforeseen or planned financial
requirements. In essence, the employer and employee each contribute 12% of the latters salary
amount into this provident fund account on a monthly basis. EPF is one of the shining success
stories when it comes to government sponsored saving schemes in India with massive popularity
and vast implementation.
The interest rate applicable on the amount accumulated in the EPF account is decided by
the government and has traditionally ranged between 8-12% of the funds maintained in the
account. The interest is credited to the concerned account on the 1st April each year. The EPFO
office sends annual reports through the employer that the concerned employee can use to get
clear bearings on the amount accumulated in his/her account. Also, EPF related information can
be sourced from the EPFOs official website.
7.National Pension System (NPS)
The retirement years are always fraught with great change and slowing down of the usual
pace of life. This is the time when sources of income may be limited due to the individuals
advancing age and/or the unavailability of income options that suit said individuals capabilities.
The National Pension System aims to negate such scenarios- offering retired individuals the
security of a regular income (pension) thanks to small investments made to this pension fund
while they were gainfully employed. The subscriber enjoys the lump sum amount, broken down
through an annuity plan, and served on a monthly basis as the regular income.
The NPS scheme is available to employees of state and central government organizations,
employees of corporate and MNC entities, individuals as well as workers from the various
unorganized sectors. The contribution to the NPS account, when speaking of employees from the
central/state government organizations, is 10% deduction from said employees monthly salary
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appended with an equal contribution from the government. In other cases, the applicant must
treat the NPS as any other long term savings instrument and action the requisite, timely
investments. Naturally, the National Pension System is one of the enduring favorites when it
comes to long term saving schemes in India.
8.Voluntary Provident Fund (VPF):
The term voluntary signifies willingly or doing something when guided by their own
free will. The concept of Voluntary Provident Fund (VPF) draws on this, wherein the subscriber
willingly contributes up to 100% of their basic salary and dearness allowance into their
respective Employee Provident Fund (EPF), instead of the usual 12%. The reservoir for such
funds is the concerned employees EPF account, meaning, any activity concerning the
employees VPF will impact the EPF portfolio too, and vice versa. For the financial year 2014-
15, the VPF account doles out an interest rate of 8.75% on the accumulated funds.
3. Debt Instruments:
Debt Instruments are obligation of issuer of such instrument as regards certain future cash
flow representing Interest & Principal, which the issuer would pay to the legal owner of the
Instrument. Debt Instruments are of different types like Bonds, Debentures, Commercial Papers,
Certificates of Deposit, Government Securities (G - Secs) etc. The Government Securities (G-
Secs) market is the oldest and the largest element of the Indian debt market in terms of market
capitalization, trading volumes and outstanding securities. The G-Secs market plays a very
important role in the Indian economy as it provides the benchmark for determining the level of
interest rates in the country through the yields on the government securities which are treated as
the risk-free rate of return in any economy.
The reserve Bank of India has allowed Primary Dealers, Banks and Financial Institutions
in India to do transactions in debt instruments among themselves or with non-bank clients. Debt
instruments provide fixed return known as coupon rate. Retail investors would have a natural
preference for fixed income returns and especially so in the present situation of increasing
volatility in the financial markets. Now, retail investors are also showing keen interest in Debt
Instruments particularly in the Central Government Securities (G-secs).For an individual investor
G-secs are one of the best investment options as there is zero default risk and lower volatility.
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There are different kinds of Debt Instruments available in India such as;
1. Bonds
A Bond is simply an 'IOU' in which an investor agrees to lend money to a company or

government in exchange for a predetermined interest rate. If a business wants to expand, one of
its options is to borrow money from individual investors. The company issues bonds at different
interest rates and sells them to the public. Investors purchase them with the understanding that
the company will pay back their original principal with some interest that is due by a set date
(this is known as the "maturity"). The interest a bondholder earns depends on the strength of the
corporation.
For example, a blue chip is more stable and has a lower risk of defaulting on its debt. Sometimes
some big companies issue bonds and they may only pay 7% interest, but some other small
companies may pay you 10%. A general rule of thumb when investing in bonds is that "the
higher the interest rate, the riskier the bond."
Following are allowed to issue bonds
Governments
Municipalities
Variety of institutions
Corporations
There are many types of bonds, each having diverse features and characteristics. Bonds and
stocks are both securities, but the major difference between the two is that stockholders have an
equity stake in the company (i.e., they are owners), whereas bondholders have a creditor stake in
the company (i.e., they are lenders). Another difference is that bonds usually have a defined
term, or maturity, after which the bond is redeemed, whereas stocks may be outstanding
indefinitely. Benefits of investing in bonds are as follows:-
Bonds can be a reliable source of current income depending on the structure of the bond
you buy
Bonds provide a certain element of liquidity, as the bond market is large and active
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If you sell a bond before it matures, you may receive more or less than your principal
investment because bond values fluctuate
Generally, interest income from federal government bonds is exempt from taxation at the
state and local level, and the interest income from municipal bonds is usually not subject
to federal tax
In the spectrum of the investment options, investment grade bonds are a relatively low-
risk investment
2. Debenture
A debenture is similar to a bond except the securitization conditions are different. A

debenture is generally unsecured in the sense that there are no liens or pledges on specific assets.
It is defined as a certificate of agreement of loans which is given under the company's stamp and
carries an undertaking that the debenture holder will get a fixed return (fixed on the basis of
interest rates) and the principal amount whenever the debenture matures.
In finance, a debenture is a long-term debt instrument used by governments and large companies
to obtain funds. The advantage of debentures to the issuer is they leave specific assets burden
free, and thereby leave them open for subsequent financing. Debentures are generally freely
transferrable by the debenture holder. Debenture holders have no voting rights and the interest
given to them is a charge against profit.
The important features of debentures are as follows:

Debenture holders are the creditors of the company carrying a fixed rate of interest.
Debenture is redeemed after a fixed period of time.

Debentures may be either secured or unsecured.
Interest payable on a debenture is a charge against profit and hence it is a tax deductible
expenditure.
Debenture holders do not enjoy any voting right.
Interest on debenture is payable even if there is a loss.
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Following are some of the advantages of debentures:
Issue of debenture does not result in dilution of interest of equity shareholders as they do
not have right either to vote or take part in the management of the company.
Interest on debenture is a tax deductible expenditure and thus it saves income tax.
Cost of debenture is relatively lower than preference shares and equity shares.
Issue of debentures is advantageous during times of inflation.
Interest on debenture is payable even if there is a loss, so debenture holders bear no risk.
Following are the disadvantages of debentures:

Payment of interest on debenture is obligatory and hence it becomes burden if the
company incurs loss.
Debentures are issued to trade on equity but too much dependence on debentures
increases the financial risk of the company.
Redemption of debenture involves a larger amount of cash outflow.
During depression, the profit of the company goes on declining and it becomes difficult
for the company to pay interest.
3. Money Market Instruments:
The money market is where financial instruments with high liquidity and very
short maturities are traded. It is used by participants as a means for borrowing and lending in the
short term, with maturities that usually range from overnight to just under a year. Among the
most common money market instruments are certificate of deposits, treasury bills, commercial
bills etc.
In the f financial marketplace, a distinction is made between the capital markets and
the money markets. The capital market is a source of intermediate-term to long-term financing in
the form of equity or debt securities with maturities of more than one year. The money market
provides very short-term funds to corporations, municipalities and the United States government.
Money market securities are debt issues with maturities of one year or less.
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Money Market Instruments provide the tools by which one can operate in the money
market. Money market instrument meets short term requirements of the borrowers and provides
liquidity to the lenders. The most common money market instruments are Treasury Bills,
Certificate of Deposits, Commercial Papers, Repurchase Agreements and Banker's Acceptance.
Different types of money markets instruments are as follow:
1. Treasury Bills (T-Bills): Treasury Bills are one of the safest money market instruments as
they are issued by Central Government. They are zero-risk instruments, and hence returns
are not that attractive. T-Bills are circulated by both primary as well as the secondary
markets. They come with the maturities of 3-month, 6-month and 1-year. The Central
Government issues T-Bills at a price less than their face value and the difference between
the buy price and the maturity value is the interest earned by the buyer of the instrument.
The buy value of the T-Bill is determined by the bidding process through auctions. At
present, the Government of India issues three types of treasury bills through auctions,
namely, 91-day, 182-day and 364-day.
2. Certificate of Deposits (CDs): Certificate of Deposit is like a promissory note issued by a
bank in form of a certificate entitling the bearer to receive interest. It is similar to bank
term deposit account. The certificate bears the maturity date, fixed rate of interest and the
value. These certificates are available in the tenure of 3 months to 5 years. The returns on
certificate of deposits are higher than T-Bills because they carry higher level of risk.
3. Commercial Papers (CPs): Commercial Paper is the short term unsecured promissory
note issued by corporates and financial institutions at a discounted value on face value.
They come with fixed maturity period ranging from 1 day to 270 days. These are issued
for the purpose of financing of accounts receivables, inventories and meeting short term
liabilities. The return on commercial papers is higher as compared to T-Bills so as the
risk as they are less secure in comparison to these bills. It is easy to find buyers for the
firms with high credit ratings. These securities are actively traded in secondary market.
4. Repurchase Agreements (Repo): Repurchase Agreements which are also called as Repo
or Reverse Repo are short term loans that buyers and sellers agree upon for selling and
repurchasing. Repo or Reverse Repo transactions can be done only between the parties
approved by RBI and allowed only between RBI-approved securities such as state and
central government securities, T-Bills, PSU bonds and corporate bonds. They are usually
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used for overnight borrowing. Repurchase agreements are sold by sellers with a promise
of purchasing them back at a given price and on a given date in future. On the flip side,
the buyer will also purchase the securities and other instruments with a promise of selling
them back to the seller.
5. Banker's Acceptance: Banker's Acceptance is like a short term investment plan created by
non-financial firm, backed by a guarantee from the bank. It's like a bill of exchange
stating a buyer's promise to pay to the seller a certain specified amount at a certain date.
And, the bank guarantees that the buyer will pay the seller at a future date. Firm with
strong credit rating can draw such bill. These securities come with the maturities between
30 and 180 days and the most common term for these instruments is 90 days. Companies
use these negotiable time drafts to finance imports, exports and other trade.
6. Euro Dollars: The Eurodollars are basically dollar- denominated deposits that are held in
banks outside the United States. Since the Eurodollar market is free from any stringent
regulations, the banks can operate at narrower margins as compared to the banks in U.S.
The Eurodollars are traded at very high denominations and mature before six months.
The Eurodollar market is within the reach of large institutions only and individual
investors can access it only through money market funds.
4. Equity Shares:
Equity shares were earlier known as ordinary shares. The holders of these shares are the
real owners of the company. They have a voting right in the meetings of holders of the company.
They have a control over the working of the company. Equity shareholders are paid dividend
after paying it to the preference shareholders.
The rate of dividend on these shares depends upon the profits of the company. They may
be paid a higher rate of dividend or they may not get anything. These shareholders take more risk
as compared to preference shareholders.
Equity capital is paid after meeting all other claims including that of preference
shareholders. They take risk both regarding dividend and return of capital. Equity share capital
cannot be redeemed during the life time of the company.
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Features of Equity Shares:
Equity shares have the following features:
Equity share capital remains permanently with the company. It is returned only when the
company is wound up.
Equity shareholders have voting rights and elect the management of the company.
The rate of dividend on equity capital depends upon the availability of surplus funds.
There is no fixed rate of dividend on equity capital.
Advantages of Equity Shares:
Equity shares do not create any obligation to pay a fixed rate of dividend.
Equity shares can be issued without creating any charge over the assets of the company.
It is a permanent source of capital and the company has to repay it except under
liquidation.
Equity shareholders are the real owners of the company who have the voting rights.
In case of profits, equity shareholders are the real gainers by way of increased dividends
and appreciation in the value of shares.
Disadvantages of Equity Shares:
If only equity shares are issued, the company cannot take the advantage of trading on
equity.
As equity capital cannot be redeemed, there is a danger of over capitalization.
Equity shareholders can put obstacles for management by manipulation and organizing
themselves.
During prosperous periods higher dividends have to be paid leading to increase in the
value of shares in the market and it leads to speculation.
Investors who desire to invest in safe securities with a fixed income have no attraction for
such shares.
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5. Mutual Fund Scheme:
A mutual fund is nothing more than a collection of stocks and/or bonds. You can think of
a mutual fund as a company that brings together a group of people and invests their money in
stocks, bonds, and other securities. Each investor owns shares, which represent a portion of the
holdings of the fund.
You can make money from a mutual fund in three ways:
1. Income is earned from dividends on stocks and interest on bonds. A fund pays out nearly
all of the income it receives over the year to fund owners in the form of a distribution.
2. If the fund sells securities that have increased in price, the fund has a capital gain. Most
funds also pass on these gains to investors in a distribution.
3. If fund holdings increase in price but are not sold by the fund manager, the fund's shares
increase in price. You can then sell your mutual fund shares for a profit.
Funds will also usually give you a choice either to receive a check for distributions or to reinvest
the earnings and get more shares.
Advantages of Mutual Funds
Professional Management - The primary advantage of funds is the professional

management of your money. Investors purchase funds because they do not have the time
or the expertise to manage their own portfolios. A mutual fund is a relatively inexpensive
way for a small investor to get a full-time manager to make and monitor investments.
Diversification - By owning shares in a mutual fund instead of owning individual stocks
or bonds, your risk is spread out. The idea behind diversification is to invest in a large
number of assets so that a loss in any particular investment is minimized by gains in
others. In other words, the more stocks and bonds you own, the less any one of them can
hurt you. Large mutual funds typically own hundreds of different stocks in many
different industries. It wouldn't be possible for an investor to build this kind of a portfolio
with a small amount of money.
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Economies of Scale - Because a mutual fund buys and sells large amounts of securities at
a time, its transaction costs are lower than what an individual would pay for securities
transactions.
Liquidity - Just like an individual stock, a mutual fund allows you to request that your
shares be converted into cash at any time.
Simplicity - Buying a mutual fund is easy! Pretty well any bank has its own line of
mutual funds, and the minimum investment is small. Most companies also have
automatic purchase plans whereby as little as Rs. 500 can be invested on a monthly basis.
Disadvantages of Mutual Funds
Professional Management - Many investors debate whether or not the professionals are
any better than you or I at picking stocks. Management is by no means infallible, and,
even if the fund loses money, the manager still gets paid.
Costs - Creating, distributing, and running a mutual fund is an expensive proposition.
Everything from the manager's salary to the investors' statements cost money. Those
expenses are passed on to the investors. Since fees vary widely from fund to fund, failing
to pay attention to the fees can have negative long-term consequences. Remember, every
rupee spend on fees is a rupee that has no opportunity to grow over time.
Dilution - It's possible to have too much diversification. Because funds have small
holdings in so many different companies, high returns from a few investments often don't
make much difference on the overall return. Dilution is also the result of a successful
fund getting too big. When money pours into funds that have had strong success, the
manager often has trouble finding a good investment for all the new money.
Taxes - When a fund manager sells a security, a capital-gains tax is triggered. Investors
who are concerned about the impact of taxes need to keep those concerns in mind when
investing in mutual funds.
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6. Insurance Products:
Insurance is a form of risk management in which the insured transfers the cost of
potential loss to another entity in exchange for monetary compensation known as the premium.
Insurance allows individuals, businesses and other entities to protect themselves against
significant potential losses and financial hardship at a reasonably affordable rate. We say
"significant" because if the potential loss is small, then it doesn't make sense to pay a premium to
protect against the loss. After all, you would not pay a monthly premium to protect against an
Rs.500 loss because this would not be considered a financial hardship for most.
Insurance is appropriate when you want to protect against a significant monetary loss.
Take life insurance as an example. If you are the primary breadwinner in your home, the loss of
income that your family would experience as a result of our premature death is considered a
significant loss and hardship that you should protect them against. It would be very difficult for
your family to replace your income, so the monthly premiums ensure that if you die, your
income will be replaced by the insured amount. The same principle applies to many other forms
of insurance. If the potential loss will have a detrimental effect on the person or entity, insurance
makes sense.
Everyone that wants to protect themselves or someone else against financial hardship
should consider insurance. This may include:
Protecting family after one's death from loss of income

Ensuring debt repayment after death
Covering contingent liabilities
Protecting against the death of a key employee or person in your business
Buying out a partner or co-shareholder after his or her death
Protecting your business from business interruption and loss of income
Protecting yourself against unforeseeable health expenses
Protecting your home against theft, fire, flood and other hazards
Protecting yourself against lawsuits
Protecting yourself in the event of disability
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Protecting your car against theft or losses incurred because of accidents

And many more
7. Retire Products:
Retirement is one of the most important life events many of us will ever experience.
From both a personal and financial perspective, realizing a comfortable retirement is an
incredibly extensive process that takes sensible planning and years of persistence. Even once it is
reached; managing your retirement is an ongoing responsibility that carries well into one's
golden years.
While all of us would like to retire comfortably, the complexity and time required in
building a successful retirement plan can make the whole process seem nothing short of
daunting. However, it can often be done with fewer headaches (and financial pain) than you
might think - all it takes is a little homework, an attainable savings and investment plan, and a
long-term commitment.
1. NPS: New Pension Scheme or NPS is a perfect retirement product open to all individuals
across the country. NPS has delivered annualized returns of around 10% in the last 4
years. This scheme is mandatory for government employees. The fact that fund managers
of NPS scheme can also take exposure to equity and equity related instruments is also a
positive for the scheme in the long run.
NPS also provides tax benefit in the form of deduction under section 80C.
Remember that it is mandatory to purchase annuity worth 40% of the corpus accumulated
through NPS at the time of retirement. You can use these Pension Calculators from Govt.
of India to calculate basic pension, family pension and pension commuted.
2. EPF: Employees Provident Fund or EPF is the most popular retirement saving
instrument in India. Though it was introduced as a retirement product, not many see it so.
The current rate of return from EPF is fixed at 8.5% p.a. EPF offers deduction up to 1
lakh limit under section 80C; interest from EPF is tax free and withdrawal is also tax free
if there is continuous service of 5 years.
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Unlike NPS, EPF does not have any restrictions such as purchasing annuity.
However, it is advisable to stay invested in this scheme by opting for EPF transfer
whenever there is change of job. This would ensure that you reap the benefits of
guaranteed returns along with power of compounding.
3. ETF: Exchange traded funds, popularly known as ETFs are also a good option for
accumulating corpus for retirement. In India, ETF can be done through Index or Gold.
Index ETF tracks the index and Gold ETF invests in Gold. You can purchase units of
ETF by purchasing Gold units every month. You would thus benefit from cost averaging
rather than investing in bulk and entail the risk of timing the markets.
4. Bonds: Bond is a type of loan taken from you by a company or government and giving
you some interest for the loan. You would have seen a flurry of bonds these days such as
IIFCL tax free bonds, HUDCO bonds, inflation bonds, etc. Many of these bonds are for
10 and 15 year durations. Some of these bonds offer interest rates in excess of 10-12%
p.a. Do check the ratings of these bonds before investing in them.
5. SCSS: Senior citizens saving scheme (SCSS) is just the kind of retirement product you
would need post retirement. This is the safest investment option for senior citizens. You
can gain an interest of 9.2% p.a with a maturity period of 5 years. The account can be
opened in post office or any nationalized banks.
6. Reverse Mortgage: Reverse mortgage is a wonderful option given to senior citizens for a
regular source of income. You can pledge your house with a bank to receive income from
the bank regularly for a set period of time. The amount received will depend on the
valuation of the house and the term opted. A recent ruling on this scheme has made the
income received from house property under this scheme totally tax free.
7. Pension Plans: Pension plans are provided by insurance companies as well as mutual
funds. They would invest a lump sum amount and provide you monthly income just as in
the case of SCSS or MIS. Charges from insurance company provided pension or annuity
plans are usually higher than mutual fund provided ones.
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8. Real Estate:
Real estate is property comprised of land and the buildings on it as well as the natural
resources of the land including uncultivated flora and fauna, farmed crops and livestock, water
and minerals. Although media often refers to the "real estate market" from the perspective of
residential living, real estate can be grouped into three broad categories based on its use:
residential, commercial and industrial. Examples of residential real estate include undeveloped
land, houses, condominiums and townhomes; examples of commercial real estate are office
buildings, warehouses and retail store buildings; and examples of industrial real estate are
factories, mines and farms.
Unlike other investments, real estate is dramatically affected by the condition of the
immediate area where the property is located, hence the well-known real-estate maxim,
"location, location, location." With the exception of a national or global recession, real estate
values are affected primarily by local factors such as the availability of jobs, crime rates, school
quality and property taxes.
Individuals who are in the market to buy a home to live in often need to borrow money in
the form of a mortgage because home prices are generally well above the savings of young
people starting a household.
Investment Real Estate:
Unlike other investments, real estate is dramatically affected by the condition of the
immediate area where the property is located, hence the well-known real-estate maxim,
"location, location, location." With the exception of a national or global recession, real estate
values are affected primarily by local factors such as the availability of jobs, crime rates, school
quality and property taxes.
One can invest in real estate by buying residential or commercial real estate or by buying
shares in real estate investment trusts (REITs) or mortgage backed securities (MBS).
Buying real estate directly results in profits or losses through two avenues: revenue from
rent and appreciation of the real estate's value. Rental money comes from land already developed
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into residential or commercial real estate. Appreciation can come from either developing raw
land or from the appreciation of the area around the land you own, for instance the appreciation
of real estate in some American cities due to gentrification in the early 21st century.
The different kinds of real estate property are:-
1. Office Property: Offices are the "flagship" investment for many real estate owners. They
tend to be, on average, the largest and highest profile property type because of their
typical location in downtown cores and sprawling suburban office parks.
At its most fundamental level, the demand for office space is tied to companies'
requirement for office workers, and the average space per office worker. The typical
office worker is involved in things like finance, accounting, insurance, real estate,
services, management and administration. As these "white-collar" jobs grow, there is
greater demand for office spaces.
Returns from office properties can be highly variable because the market tends to
be sensitive to economic performance. One downside is that office buildings have high
operating costs, so if you lose a tenant it can have a substantial impact on the returns for
the property. However, in times of prosperity, offices tend to perform extremely well,
because demand for space causes rental rates to increase and an extended time period is
required to build an office tower to relieve the pressure on the market and rents.
2. Retail Property: There is a wide variety of Retail properties, ranging from large enclosed
shopping malls to single tenant buildings in pedestrian zones. At the present time, the
Power Center format is in favor, with retailers occupying larger premises than in the
enclosed mall format, and having greater visibility and access from adjacent roadways.
Many retail properties have an anchor, which is a large, well-known retailer that
acts as a draw to the center. An example of a well-known anchor is Wal-Mart. If a retail
property has a food store as an anchor, it is said to be food-anchored or grocery anchored;
such anchors would typically enhance the fundamentals of a property and make it more
desirable for investment. Often, a retail center has one or more ancillary multi-bay
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buildings containing smaller tenants. One of these small units is termed a commercial
retail unit (CRU).
The demand for retail space has many drivers. Among them are: location,
visibility, population density, population growth and relative income levels. From an
economic perspective, retails tend to perform best in growing economies and when retail
sales growth is high.
Returns from Retails tend to be more stable than Offices, in part because retail
leases are generally longer and retailers are less inclined to relocate as compared to office
tenants.
3. Industrial Property: Industrials are often considered the "staple" of the average real estate
investor. Generally, they require smaller average investments, are less management
intensive and have lower operating costs than their office and retail counterparts.
There are varying types of industrials depending on the use of the building. For
example, buildings could be used for warehousing, manufacturing, research and
development, or distribution. Some industrials can even have partial or full office build-
outs.
Some important factors to consider in an industrial property would be

functionality (for example, ceiling height), location relative to major transport routes
(including rail or sea), building configuration, loading and the degree of specialization in
the space (such as whether it has cranes or freezers). For some uses, the presence of
outdoor or covered yard space is important.
4. Multi-family Residential Property: Multi-family residential property generally delivers

the most stable returns, because no matter what the economic cycle, people always need a
place to live. The result is that in normal markets, residential occupancy tends to stay
reasonably high. Another factor contributing to the stability of residential property is that
the loss of a single tenant has a minimal impact on the bottom line, whereas if you lose a
tenant in any other type of property the negative effects can be much more significant.
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For most commercial property types, tenant leases are either net or partially net,
meaning that most operating expenses can be passed along to tenants. However,
residential properties typically do not have this attribute, meaning that the risk of
increases in building operating costs is borne by the property owner for the duration of
the lease.
9. Precious Objects
Precious objects in general are valuable objects that are physically not voluminous. The
major types of precious objects are gold, silver, diamonds etc.
1. Gold and Silver:
Gold and silver, the two most widely held precious metals, appeal to almost all kinds of
investors for the following reasons.
Historically, they have been good hedges against inflation

They are highly liquid with very low trading commissions
They are aesthetically attractive
They possess a high degree of money
As against these advantages investment in gold and silver has the following disadvantages.
They do not provide regular current income

There is no tax advantage associated with them
There may be a possibility of being cheated
Due to the softening of their process, gold and silver have not kept up with inflation in
recent times
2. Precious Stones:
Diamonds, rubies, emeralds, sapphires and pearls have appealed to investors since times
immemorial because of their aesthetic appeal and rarity. Diamonds in particular, have attracted
interests because of their high per carat value. The quality of a diamond is basically judged in
terms of the 4Cs viz carat color cut and clarity.
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While precious stones may have appeal of the affluent investors and those who have skill in
buying them. They are not suitable for the bulk of the investors for the following reasons:
Precious stones can be very illiquid. It may not be easy to sell them quickly without
giving major price concessions.
The grading process by which the quality and value of precious stones is determined can
be quite subjective
For investment purposes, larger precious stones are suitable. Most investments grade
precious stones diamonds in particular require huge investments.
Precious stones do not earn a regular return during the period they are held. On the
contrary, the investor has to incur the cost of insurance and storage.
3. Art Objects:
Objects which possess aesthetic appeal because their production requires skill, taste,
creativity talent and imagination may be referred to as art objects. According to this definition,
paintings, sculptures, etchings and so on, may be regarded as art objects (Some of these objects
thanks to their historical importance are classified as antiques) The value of an art object is a
function of its aesthetic appeal, rarity, reputation of the creator, physical conditions and fashion.
10. Derivatives Market:
Derivatives are products whose value is derived from the value of one or more basic
variables, which are called Underlying Assets. The underlying asset can be equity, index, foreign
exchange (Forex), commodity or any other asset. This means that any instrument that derives its
value on its underlying equity, index, foreign exchange (Forex), commodity or any other asset, is
a Derivative Instrument. Please note that derivative products initially emerged as hedging
devices against fluctuations in commodity prices and commodity-linked derivatives remained the
sole form of such products for almost three hundred years. But after 1970s, the financial
derivatives came into spotlight thanks to the growing instability in the financial markets.
However, since their emergence, these products have become very popular and by 1990s, they
accounted for about two thirds of total transactions in derivative products.
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One of the key features of financial markets are extreme volatility. Prices of foreign
currencies, petroleum and other commodities, equity shares and instruments fluctuate all the
time, and pose a significant risk to those whose businesses are linked to such fluctuating prices.
To reduce this risk, modern finance provides a method called hedging. Derivatives are widely
used for hedging. Of course, some people use it to speculate as well although in India such
speculation is prohibited.
Derivatives are products whose value is derived from one or more basic variables called
underlying assets or base. In simpler form, derivatives are financial security such as an option or
future whose value is derived in part from the value and characteristics of another an underlying
asset. The primary objectives of any investor are to bring an element of certainty to returns and
minimize risks. Derivatives are contracts that originated from the need to limit risk.
Derivative contracts can be standardized and traded on the stock exchange. Such
derivatives are called exchange-traded derivatives. Or they can be customized as per the needs of
the user by negotiating with the other party involved. Such derivatives are called over-the-
counter (OTC) derivatives.
A Derivative includes:
(a) A security derived from a debt instrument, share, loan, whether secured or unsecured, risk
instrument or contract for differences or any other form of security;
(b) A contract which derives its value from the prices, or index of prices, of underlying
securities.
Advantages of Derivatives:
They help in transferring risks from risk adverse people to risk oriented people.
They help in the discovery of future as well as current prices.
They catalyze entrepreneurial activity.
They increase the volume traded in markets because of participation of risk adverse
people greater numbers.
They increase savings and investment in the long run.
35
Types of Derivative Instruments:
Derivative contracts are of several types. The most common types are forwards, futures,
options and swap.
1. Forward Contracts:
A forward contract is an agreement between two parties a buyer and a seller to
purchase or sell something at a later date at a price agreed upon today. Forward contracts,
sometimes called forward commitments, are very common in everyone life. Any type of
contractual agreement that calls for the future purchase of a good or service at a price
agreed upon today and without the right of cancellation is a forward contract.
2. Future Contracts:
A futures contract is an agreement between two parties a buyer and a seller to
buy or sell something at a future date. The contact trades on a futures exchange and is
subject to a daily settlement procedure. Future contracts evolved out of forward contracts
and possess many of the same characteristics. Unlike forward contracts, futures contracts
trade on organized exchanges, called future markets. Future contacts also differ from
forward contacts in that they are subject to a daily settlement procedure. In the daily
settlement, investors who incur losses pay them every day to investors who make profits.
3. Options Contracts:
Options are of two types calls and puts. Calls give the buyer the right but not the
obligation to buy a given quantity of the underlying asset, at a given price on or before a
given future date. Puts give the buyer the right, but not the obligation to sell a given
quantity of the underlying asset at a given price on or before a given date.
4. Swaps:
Swaps are private agreements between two parties to exchange cash flows in the
future according to a prearranged formula. They can be regarded as portfolios of forward
contracts. The two commonly used swaps are interest rate swaps and currency swaps.
i. Interest rate swaps: These involve swapping only the interest related cash flows
between the parties in the same currency.
36
ii. Currency swaps: These entail swapping both principal and interest between the
parties, with the cash flows in one direction being in a different currency than
those in the opposite direction.
37
CHAPTER 5:
DATA ANALYSIS
AND
INTERPRETATION
Chapter 5: DATA ANALYSIS

Age of respondent:-
Age group Percentage of respondent

18 years 25 years 18%
35 years and above 23%
Table no. 5.1
18 years to 25 years 25 years to 30 years 30 years to 35 years 35 years and above
18%
23%
21%
38%
Figure no. 5.1
Interpretation:
The total number of respondent is 100. The percentage of respondent are
18% from 18 years to 25 years age group, 38% are from 25 years to 30 years of
age group, 21% are from 30 years to 35 years of age group and 23% are from 35
years and above age group.
38
Occupation of Respondent:
Occupation No. of Respondent

Self Employed 43
Salaried 33
Retired 6
Student 18
Table no. 5.2
Self Employed Salaried Retired Student
18%
6% 43%
33%
Figure no. 5.2
Interpretation: -
As the sample size is 100, where major respondent are from working
category i.e. is 43% self-employed and 33% Salaried and non-working category
are about 6% of retired and 18 % of college student.
39
Monthly average income:-
Monthly Income in Rupees No. of Respondent

5000 and below 20
5000-10000 4
10000-50000 48
Above 50000 28
Table No. 5.3
5000 and below 5000-10000 10000-50000 above 50000
20%
28%
4%
48%
Figure no. 5.3

Interpretation:
There were 100 respondent out which 28% of the respondent earns more
than 50,000 a month, 48% earns in between10000 to 50000 a month, 4% of the
respondent earns in between 5000-10000 a month and about 20% earns less than
5000 a month.
40
Monthly saving of investors:
Percentage of saving No. of Respondent

Below 5% 24
5-10% 28
10-20% 17
Above 20% 31
Table no. 5.5
below 5% 5-10% 10-20% above 20%
24%
31%
17% 28%
Figure no. 5.4
Interpretation:
Out of hundred respondent 24% of the respondent save less than 5% of their
income, 26% of the respondent save 5% to 10% of their income in a month, 28%
of the respondent save 10% to 20% of their income in a month and about 30% of
the respondent save more than 20% of their monthly income .
41
Investment Experience:
Options No. of Respondent

Beginning 18
Moderate 19
Knowledgeable 42
Experienced 21
Table No. 5.5
Beginning Moderate Knowledgeable Experienced
21% 18%
19%
42%
Figure No. 5.5
Interpretation: -
Out of 100 respondent 18% of the respondent were at their Beginning stage
of the investment they were comfortable with the simple type of investment like
saving account, fixed deposit etc. , 19% of the investor were having moderate level
of investment were they were they invest in the investment like ppf, post office,
chit funds, government securities, etc., 42% of the investor were knowledgeable
who were having experienced on most of the investment like trading in equity
market, ppf, chit funds, etc. 21% of the investors are experienced who are
comfortable with any kind of investment like real estate , frequently trades in
equity market, commodity market etc.
42
Owned Investment:
A. Low Risk Investment Avenues:

Saving account 100
Bank Fixed deposit 61
Post office saving account 42
Public provident fund 39
National saving certificate 0
Government Securities 10
Table No. 5.6(a)
Government Securities
National saving certificate
Public provident fund
Post office saving account
Bank fixed deposit
Saving account
0 20 40 60 80 100 120
Figure No. 5.6(a)
Interpretation:
Out of 100 respondent all of them were having a saving account, there about
only 61 of them who also invest in fixed deposit account, there were about 42
respondent who were investing in post office and there were about only 39 of the
respondent who invest their money on public provident fund and there were 10
respondent who also invest their money on government securities. There was no
such a investor who was investing his/her money on national saving certificate.
43
B. Moderate Risk Investment Avenues:
Options No. Respondent

Mutual Funds 63
Debentures 0
Bonds 21
Life Insurance 60
Table No. 5.6(b)
Life Insuranvce
Debenture
Bonds
Mutual Funds
0 10 20 30 40 50 60 70
Figure 5.6(b)
Interpretation:
There were about 63 respondents out of 100 who invest their money
on mutual funds, there were about 21 respondents who invest their money on
bonds and there were about 60 of the respondent who have invested their money
on life insurance also. There was no such a respondent who have invested his/her
money on Debentures.
44
C. High Risk Avenues:

Equity Share Market 63
Commodity Market 21
Foreign Exchange 12
Table 5.6(c)
Foreign Exchange
Commodity Market
Equity share market
0 10 20 30 40 50 60 70
Figure 5.6(c)
Interpretation:
Out of hundred respondent 63 of the respondent invests his/her money in
equity share market, 21 of them also invest in commodity market and 12 of them
also invest their money in a foreign exchange.
45
D. Traditional Investment Avenues:

Real Estate 39
Gold/Silver 76
Table No. 5.6(d)
Gold/silver
Real estate
0 10 20 30 40 50 60 70 80
Figure No. 5.6(d)
Interpretation:
Out of hundred respondent 76 of the respondent invest his/her money
in a gold/silver and about 39 of the respondent invest his/her money in a real estate
market.
46
E. Emerging Investment Avenues:

Virtual Real Estate 0
Private Equity Investment 0
Hedge Funds 0
Art and Passion 0
Table No. 5.6(e)
Interpretation:
There was not a single investor who invests his/her money in newly
emerging investment avenues like virtual real estate, hedge funds, private equity
investment, art or passion.
47
Source of Information:
Options No. of respondent

Print media 100
Word of mouth 70
Electronic media 41
Brokers 63
Table No. 5.7
Brokers 63
Electronic media 41
Word of mouth 70
Print media 100
0 20 40 60 80 100 120
Figure No. 5.7
Interpretation:
All the 100 respondent use print media to get the information from Print
Media, out which 70 respondent also get there information from other people like
friends, family members, colleague, etc., 40 respondent get their information from
electronic media like Internet and Television and about 63 respondent also get their
investment details from their Brokers.
48
Factor considered by the respondent before investing any investment:

Safety of principle 48
Low risk 100
High returns 100
Maturity period 26
Table No. 5.8
Maturity Period
High Returns
Low risk
Safety of principle
0 20 40 60 80 100 120
Figure No. 5.8
Interpretation:
Out of hundred responded all of them consider high returns and low risk
factors before investing in any investment, about 48% of the respondent consider
safety of principle factor and about 26% of the respondent also consider maturity
period.
49
Rate at which investors wants their investment to grow:
Growth rate No. of respondent

5% and below 0
5-10% 19
10-15% 60
15% and above 21
Table No. 5.9
below 5% 5-10% 10-15% 15% and above
0%
21% 19%
60%
Figure No 5.9
Interpretation: -
Out of 100 respondents there was no one expect their investment to grow
below 5%, there were about 19 respondents who expect their investment to grow at
the rate in between 5-10%, the majority of 60% of the people expect their income
to grow at the rate of 10-15% and about 21% of the people expect their investment
to grow at above 15% percent.
50
Future investing objectives of investor on their investment:
Objectives No. of Respondent

Buy a house 62
Children's Education 64
Creating wealth 100
Save tax 52
Retirement 76
World tour 0
Other 0
Table No. 5.10
Other
World tour
Retirement
Save tax
Creating wealth
Children's Education
Buy a house
0 20 40 60 80 100 120
Figure No. 5.10
Interpretation:
Out of hundred respondents each and every respondent invest their money
for creating wealth, we can conclude that creating wealth was their main objective
of their investment. Some investor also have multiple objective of their investment
like around 62% of investor also invest for buying a house, 64% of investor also
invest for their children's education, 52% also invest to save tax and about 76% of
the respondent also invest their money for their retirement plan. There was no
other respondent who is having any other objective for investing and for a world
tour.
51
Investor who invest in share market:

Option No. of Respondent
Yes 63
No 37
Table No.5.11 (a)
Yes No
37%
63%
Figure No. 5.11(a)
Interpretation:
Out of hundred respondent 63% of the respondent invest their money in a
share market and 37% of the respondents do not at all invest in a share market.
52
How often investor invests in a share market:

Regularly 30
As per market scenario 21
Speculative manner 12
Table No. 5.11 (b)
Regularly As per market scenario Speculative manner
19%
48%
33%
Figure No. 5.11 (b)

Interpretation:
Out of hundred respondent 63 respondents invest in share market. Out of
which 48% invest regularly, 33% invest their money in share market as per market
scenario, 19% invest their money speculatively.
53
Opinion of investor if the stock market falls moment after he/she invest in a
stock:
Opinion No. of Respondent
Withdraw your money 12
Wait to increase 16
Invest more in it and average your 35
investment
Figure No. 5.11(c)
Withdraw your money Wait to increase Invest more in it and average your investment
19%
56%
25%
Figure No. 6.11(c)

Interpretation:
Out of hundred respondent 63 respondents invest in share market. Out of
which 19% of the investor will withdraw their money if the price of the stock they
purchased is reduced, 25% of the respondent will wait to increase and about 56%
of the investor will invest more in it.
54
Awareness of real estate market:

Yes 100
No 0
Table no. 5.12(a)
Yes No
0%
100%
Figure No. 6.12(a)

Interpretation:
Out of hundred respondents all the respondents were aware of real estate
market which 100% of the awareness among the respondent.
55
Weather if the Investor has made any investment in real estate in past 5 years:
Yes 39
No 61
Table No. 5.12(b)
Yes No
39%
61%
Figure No. 5.12(b)

Interpretation:
Out of 100 respondent who were aware about real estate market out of which
only 39% of the respondent have invest/invested in past five years as investment in
real estate is costly and risky.
56
Investors opinion on "real estate market is getting costlier"

Strongly agree 39
Agree 35
Neutral 26
Disagree 0
Strongly disagree 0
Table No. 5.12(c)
Strongly agree Agree Neutral Disagree Strongly Disagree
0% 0%
26%
39%
35%
Figure No. 5.12(c)

Interpretation:
Out of 100 respondent 39% of the respondent strongly agreed on the
increase in price of the real-estate market, about 35% of the respondent somewhat
agree that real estate market is getting costlier and about 26% of the people were
neutral either they think real estate market is at the same price considering the
inflation rate either they are not aware much of real-estate investments and there
was not a single respondent who disagree or strongly disagree on the opinion that
real estate market is getting costlier.
57
Investor's investment in gold:

Yes 76
No 24
Table No. 5.13(a)
Yes No
24%
76%
Figure No. 5.13(a)
Interpretation:
Out of hundred 100 respondent 76% of the respondent invest their money in
it and about 24% respondent do not invest their money on gold.
58
Investors point of view while investing in gold:

Investment 44
Jewelry 32
Table No. 5.13(b)
Investment Jewelry
37%
63%
Figure No. 5.13(b)
Interpretation:
Out of 76% respondent who invests in gold out of which 63% of the investor
invests in gold as an investment and remaining 37% of the respondent invest in
gold as jewelry.
59
Investors opinion on Gold is the best investment

Strongly agree 9
Agree 27
Neutral 21
Disagree 14
Strongly disagree 5
Table No. 5.13(c)
Strongly agree Agree Neutral Disagree Strongly disagree
7% 12%
18%
35%
28%
Figure No. 5.13(c)
Interpretation:
Out of hundred respondent 76% of the respondent invest their money on
gold. Out 76 respondent 12% of the investor thinks that investing in gold is
strongly agreeable, 35% of the respondent agreed on gold is the best investment,
28% of respondent were neutral they dont agree and they dont deny also that gold
is the best investment option, about 18% of the investor disagree that gold is the
best investment option and about 7% of the investors strongly disagree that gold is
best investment option for them.
60
Investors investment in mutual funds:

Yes 63
No 37
Table No. 5.14(a)
Yes No
37%
63%
Figure No. 5.14(a)
Interpretation:
Out of hundred respondent 63% of the respondent invest their money on
mutual funds and 37% of the respondents do not at all invest in mutual funds.
61
Investors opinion on why they invest their money through mutual funds:
Opinion No. of Respondent

Tax Benefit 56
High Returns 23
Affordability 30
Liquidity 42
Diversified risk 63
Convenience 48
Table No. 5.14(b)
Convenience
Diversified risk
Liquidity
Affordability
High Returns
Tax Benefit
0 10 20 30 40 50 60 70
Figure No. 5.14(b)
Interpretation:
Out of 63% of respondent which is 63 respondents who invest in mutual
funds out of this 63 respondent 56 respondent invest their money to save tax, 23 of
them also expect high returns, 30 of them invest in mutual funds because funds are
affordable, 42 people invest for the liquidity of the mutual funds, 63 of respondent
that is all the respondent who invest in mutual funds is because mutual funds are
diversified and around 48 of them also invest as they are convenience.
62
How often investors monitor their investment:
Type of response No. of Respondent

Daily 42
Fortnightly 21
Monthly 19
Occasionally 18
Table No. 5.15
Daily Fortnightly Monthly Occasionally
18%
42%
19%
21%
Figure No. 5.15
Interpretation:
Out of hundred respondent 42% of the respondent monitor their investment
daily, 21% of the investor monitors their investment fortnightly, about 19% of the
investor monitors their investment monthly and about 18% of the investor monitors
their investment occasionally.
63
Type of Investor:
Type of response No. of Respondent

Active Investor 39
Passive Investor 61
Table No. 5.16
Active Investor Passive Investor
39%
61%
Figure No. 5.16
Interpretation: Out of 100 respondent 43% of investor were passive investors as

they invest on investment but they do not involve them self in the management of
the company of their investment, about 39% of the investors invest are active
investors and they involve actively in the management of the company all the
active respondent were investors who had invested in real estate market and about
18% of the investor consider them self as not an investor even though they have
saving accounts and all of them were where students.
64
CHAPTER 6:
CONCLUSION
Chapter 6: CONCLUSIONS
From the study it is concluded that most of the investors in Mumbai were self-employed
followed by salaried, student and retired. The majority of investors income is above ten
thousand and majority of the people save their income above 20%. Majority of the investors
were knowledgeable when it comes to investment from this we can conclude that most of the
investors in Mumbai were highly educated when it comes to investment.
From the study it is also concluded that large portion of the investors portfolio belongs
to safe investment avenues, it is also concluded that still the investors are not properly aware
regarding new investments and their benefits. It is also revealed that investor consider print
media as reliable source of information about investment and investment avenues followed by
word of mouth, brokers and electronic media. It is also concluded that large portion of investors
portfolio belongs to safe investment avenues. Each and every investors consider the factor of low
risk and high returns on every investment he/she makes followed by safety of principle and
maturity period and majority of investor expect that their investment should grow in range
between 10% to 15%. Investors prefer safe and secured investment avenues to create wealth and
also they give preference to investment avenues to get them benefit of tax, save for their children
education and also for their retirement. Considering the past, present and future of gold it is
concluded that every investor should have precious metals as a part of their portfolio and not
every investor consider the gold as investment some of them consider gold as a more of jewelry
than investment. Each and every investor were aware of real estate market and majority of them
believe that real estate market and majority of the respondent believe the fact that real estate
market is getting costlier day by day. From the data we can also conclude that majority of the
people monitor their investment regularly followed by fortnightly, monthly and occasionally.
The study of investment avenues is based on hypothesis that there is a significant

difference in investment portfolio of investors in Mumbai. The study revealed that investors in
Mumbai invest in their portfolio irrespective of their gender, age and education. However the
investment portfolio of investors in Mumbai differs on the basis of their occupation and level of
income.
65
REFERENCE
REFERENCES
Bibliography:
1. Reference book Investment analysis and Portfolio management by Prasanna Chandra Chapter No. 1
2. Investment analysis and portfolio management by Prasanna Chandra: Chapter 2 page numbers: 2.2,
2.4, 2.5, 2.7, 2.9, 2.11, 2.13, 2.16, 2.19 and 2.11
Webliography:
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2. http://finance.mapsofworld.com/investment {1/3/2016 @ 11.15 am}
3. http://www.slideshare.net/niyaztvm/a-study-on-investment-avenues-for-investor-niyaz {2/8/2016@11.00
am}
4. http://irjbm.org/irjbm2013/April2014/Paper6.pdf{2/8/2016@11.20 am}
5. http://www.iosrjournals.org/iosr-jef/papers/vol5-issue2/B0520917.pdf {2/8/2016@11.30 am}
6. https://en.wikipedia.org/wiki/Deposit_(finance) {3/8/2016 @ 11.00am}
7. http://www.gktoday.in/blog/types-of-deposits-accounts-in-india/{3/8/2016 @ 11.07 am}
8. https://www.bankbazaar.com/saving-schemes.html {3/8/2016 @ 12.05 am}
9. http://www.investopedia.com/terms/m/moneymarket.asp{4/8/2016 @ 11.00 am}
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28.html {4/8/2016 @ 11.10 am}
11. http://indianmoney.com/how/what-are-the-different-types-of-debt-instruments-available-in-india
{5/8/2016 @ 9.03 pm}
12. http://www.yourarticlelibrary.com/shareholders/equity-shares-features-advantages-and-disadvantages-
of-equity-shares/42051/ {5/8/2016 @ 9.30 pm}
13. http://www.investopedia.com/university/mutualfunds/mutualfunds1.asp {5/8/2016 @ 10.13 pm}

14. http://www.investopedia.com/university/insurance/insurance1.asp {5/8/2016 @ 10.40 pm}
15. http://www.investopedia.com/university/retirement/ {5/8/2016 @ 11.11 pm}
16. http://www.business-standard.com/article/pf/10-financial-products-to-help-you-plan-your-retirement-
114041500210_1.html {5/8/2016 @ 11.30 pm}
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=40186 {6/8/2016 @ 12.02 am}
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19. http://www.citeman.com/3786-precious-objects.html {6/8/2016 @ 1.00 am}
20. http://blog.ipleaders.in/types-of-derivatives-and-derivative-market/ {6/8/2016 @ 1.45 am}
21. http://www.gktoday.in/blog/derivatives/ {6/8/2016 1.55 am}
22. http://www.yourarticlelibrary.com/financial-management/debentures-meaning-features-advantages-
disadvantages/43834/ {6/8/2016 8.00 pm}

ANNEXURE
QUESTIONAIRE
Name of the Respondent: ___________________________________________________________________

Age: _______________________ Gender: Male [ ] Female [ ]
Locality: ___________________ City : ________________________________________
Contact No.: __________________ Email Id : ________________________________________
__________________________________________________________________________________________
A] PERSONAL INFORMATION:-
1. What is your Occupation?
(a) Self Employed [ ] (b) Salaried [ ]
(c) Retired [ ] (d) Student [ ]
2. What is your monthly average income?
(a) 5000 and below [ ] (b) 5000-10000 [ ]
(c) 10000-50000 [ ] (d) 50000 and above [ ]
3. How much percentage of money on an average you save a month?
(a) Below 5% [ ] (b) 5-10% [ ]
(c) 10-20% [ ] (d) Above 20% [ ]
4. What describesyour best investment experience?
[ ] Beginning (comfortable with simple Investment like saving accounts and fixed deposits)
[ ] Moderate (comfortable investment like ppf, chit funds, post office, government securities etc.)
[ ] Knowledgeable (comfortable with the investment like ppf, chit funds, post office, saving accounts etc.
and has bought or sold individual shares of stocks or bonds)
[ ] Experienced (comfortable in any kind of investments and frequently trades in stock, commodity market,
real estate, futures,options etc.)
B] INVESTMENT INFORMATION:-
5. Do you owned any of the following Investment?

A. Low Risk Investment Avenues: C. High Risk Avenues:
Saving account [ ] Equity Share Market [ ]
Bank Fixed deposits [ ] Commodity Market [ ]
Public Provident fund [ ] Foreign exchange [ ]
National Saving Certificates [ ] D. Traditional Investment Avenues:
Post Office Saving [ ] Real Estate [ ]
Government Securities [ ] Gold/Silver [ ]
B. Moderate Risk Investment: E. Emerging Investment Avenues:
Mutual Funds [ ] Virtual Real Estate [ ]
Debentures [ ] Hedge Funds [ ]
Bonds [ ] Private Equity Invest. [ ]
Life Insurance [ ] Art and Passion [ ]
6. From where you obtain the information regarding financial instruments?

(a) Print Media [ ] (b) Word of mouth [ ]
(c) Electronic Media [ ] (d) Brokers [ ]
7. From the given below options what are the factors that you consider before investing in any of the
financial instruments?
(a) Safety of principal [ ] (b) Low risk [ ]
(c) High returns [ ] (d) Maturity Period [ ]
8. At what rate do you want your investment to grow?

(a)Below5% [ ] (b) 5-10% [ ]
(c) 10-15% [ ] (d) 15% and above [ ]
9. What are your investing objectives?
(a) Buy a house [ ] (b) Childrens education [ ]
(c) Creating Wealth [ ] (d) Save tax [ ]
(e) Retirement [ ] (f) World tour [ ]
(g) Other [ ]
10. Do you invest in share market?
(a) Yes [ ] (b) No [ ]
How often you invest in share market?
(a) Regularly [ ] (b) As per market scenario [ ]
(c) Speculative manner [ ]
Imagine that stock market falls moments after you invest in then what will you do?
(a) Withdraw your money [ ] (b) Wait to increase [ ]

(c) Invest more in it and average your investment [ ]
11. Are you aware of real estate market?

(a) Yes [ ] (b) No [ ]
Do you have or had made any investment in real estate market in past 5 years?
(a) Yes [ ] (b) No [ ]
Do you think investment in real estate is getting costlier?
Strongly agree [ ] Agree [ ]
Neutral [ ] Disagree [ ]
Strongly disagree [ ]
12. Do you invest in gold?

(a) Yes [ ] (b) No [ ]
You buy gold as investment or as jewelry?

(a) Investment [ ] (b) jewelry [ ]
Give your opinion on Gold is the best Investment?

Strongly agree [ ] Agree [ ]
Neutral [ ] Disagree [ ]
strongly disagree [ ]
13. Have you ever have/had invested in Mutual Funds?

(a) Yes [ ] (b) No [ ]
Why do you invest your money through mutual funds?

(a) Tax Benefits [ ] (b) High return [ ]
(c) Affordability [ ] (d) Liquidity [ ]
(e) Diversified risk [ ] (f) Convenience [ ]
14. How often do you monitor your investment?

(a) Daily [ ] (b) Fortnightly [ ]
(c)Monthly [ ] (d) Occasionally [ ]
15. According to you which kind of investor you are?
(a)Active Investor [ ] (b) Passive Investor [ ]
Signature of Respondent
____________________________________

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RESEARCH PROJECT ON

BACHELOR OF MANAGEMENT STUDIES

IN PARTIAL FULLFILLMENT OF REQUIREMENT FOR THE AWARD OF

SACHIN VILAS ACHAREKAR

SMEET SUMANBHAI PATEL

K.J.SOMAIYA COLLEGE OF SCIENCE & COMMERCE

Re-accredited by NAAC with Grade A (Autonomous)

(VIDYANAGAR, VIDYAVIHAR, MUMBAI 400 077)

BACHELOR OF MANAGEMENT STUDIES

_____________________ _______________________ _________________

I, MR. SACHIN VILAS ACHAREKAR hereby certify that MR. SMEET

Place: Vidyavihar (Mumbai)

I, MR.SMEET SUMANBHAI PATELstudent of T.Y.B.M.S semester V (2016-

(MR.SMEET SUMANBHAI PATEL)

It is matter of outmost pleasure to express my indebt and deep sense of gratitude to

I have great pleasure in presenting my project to the Mumbai University, as my topic

5 DATA ANALYSIS AND 38

1.1 Introduction to Investments:

An investment involves the choice by an individual or an organization such as

1.2 Introduction to Investment avenues:

Different types of Investment Avenues are as follows:

2. Government Saving Schemes:

Government of India offers a number of small saving schemes to individual investors.

5. Mutual Fund Scheme:

10. Financial Derivatives:

1.3 Objective of Study:

2. To understand in depth about different investment avenues available in India.

4. To find out different types of investments investors prefer most.

8. To know the risk tolerance level of the individual investor.

9. To identify the objective of saving of an investor.

1.4 Scope of Study:

make predictable errors about the return on investment on their investments.

like age on risks tolerance level of the investor.

they want to make.

1.5 Limitation of Study:

1. An analysis is based on primary as well as secondary data; possibility of unauthorized

information cannot be avoided.

2. The information can be biased due to use of questionnaire.

needs a lot of time and resources.

financial literacy rate in India is only around 24%.

Chapter 2: LITERATURE REVIEW

1. M.Sellan-Senior Lecturer in Commerce-Cuddalore(2007) in his study entitled as A study on

2. Sir SushantNagpal in his paper Psychology of Investment and Investors Preferences in

Chapter 3: RESEARCH METHODOLOGY

3.1 Primary Data:

Information is collected by conducting a survey by distributing a questionnaire to more

3.2 Secondary Data:

Chapter 4: Investment Avenues

2. Government Saving Schemes:

Types of Government Saving Schemes available in India are as follows:

1. Public Provident Fund (PPF):

Interest rate of 8.70% p.a is compounded annually.

Minimum yearly investment of just Rs.500 to a maximum of Rs.1, 50,000.

Post Office Savings Account

6. Employee Provident Fund (EPF)

Administered by the Employees' Provident Fund Organization (EPFO), the Employee

7.National Pension System (NPS)

8.Voluntary Provident Fund (VPF):

A Bond is simply an 'IOU' in which an investor agrees to lend money to a company or

Following are allowed to issue bonds

A debenture is similar to a bond except the securitization conditions are different. A

The important features of debentures are as follows:

Debenture is redeemed after a fixed period of time.

Following are some of the advantages of debentures:

_________ _ _______