CHAPTER I

1.1 INTRODUCTION: -

Making a move in the expectations of raising future income can be called as an investment.
Pursuing extra instruction can be viewed as an investment, as the objective is to build learning
and enhance aptitudes in the expectations of delivering more pay.

An investment is the work of assets with point of accomplishing income and development in
esteem the fundamental attributes of speculation are sitting tight for a reward. Investment is
the distribution of financial assets to resources that are required to yield some pick up or
positive return over a given timeframe. The investment goes for the augmentation of cash at
higher or bring down rates relying on whether it is long haul or here and now speculation and
whether it is an unsafe or hazard free investment. Investment action includes the production of
benefits or trade of as-the sets with a benefit rationale.

“An investment in knowledge pays the best interest”

An investment bank gives an assortment of administrations intended to help an individual or
business in expanding related riches. This does exclude customary shopper managing an
account. Rather, the organization concentrates on speculation vehicles, for example,
exchanging and resource administration. Financing alternatives may likewise be
accommodated the motivation behind helping with these administrations. From the general
people perspective, the investment is a dedication of a man's assets to infer future wage as
intrigue, profits, lease, premium, annuity advantages or valuation for the estimation of their
principal capital.

Speculation is a separate activity from making an investment. Investment includes the buy of
benefits with the plan of holding them as long as possible, while theory includes endeavoring
to gain by advertise wasteful aspects for here and now benefit. Proprietorship is for the most
part not an objective of theorists, while financial specialists regularly hope to construct the
quantity of advantages in their portfolios after some time.

Although speculators are often making informed decisions, speculation cannot usually be
categorized as traditional investing. Speculation is generally considered higher risk than
traditional investing, though this can vary depending on the type of investment involved.

Saving is income not spent, or deferred consumption. Methods of saving include putting money
aside in a bank or pension plan. Saving also includes reducing expenditures, such as recurring
costs. In terms of personal finance, saving specifies low-risk preservation of money, as in a
deposit account, versus investment, where in risk is higher.

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1.2 OBJECTIVES
 To study the behavioral pattern of investments among salaried people
 To study the preference towards various investment alternatives.
 To provide an insight into factors considered for an appropriate investment
 To Analyze the future prospects of investment scheme in India.
 To find out the Risks associated with it in current scenario.

1.3 NEED OF THE STUDY

This analysis on singular financial specialist's conduct is an endeavor to know the profiles of
the speculator and furthermore, know the attributes of the speculators to know their inclination
concerning their investments. The analysis likewise tries to unwind the impact of like age on
hazard, resilience level of the financial specialist.

An investment analysis is a useful tool in evaluating how the investment is performing in terms
of rate of return and risk. Accomplished by looking not only at how an individual investments
perform but also how the other perform together, an analysis can identify underperforming or
excessively risky assets and provide guidance as to where changes to your investment
allocations should be made to keep a track on to meet the investment objectives. Albeit each
individual investor has his/her own goals in terms of performance, a routine analysis can be
useful for any investment regardless of its strategy. Investment analysis is a helpful tool;
however, it isn't without constraints.

1.4 SCOPE OF THE WORK

Even with the most careful planning construction, past performance is never an assurance for
future results. Even the most thought out investment strategies can fail given the proper
circumstances. Additionally, investment objectives can change over time. For example, from
long-term growth during the early stages of a career to preservation of capital during retirement,
an investment analysis will need to be done periodically to make sure your investments are in
line with your objectives

Financial forecasting is performed for a wide variety of reasons, such as projecting expected
sales in order to adjust capacity rates, or as part of budget management. Creditors often require
both historical and forecast financial statements when performing their initial and ongoing
credit analysis.

1.5 LIMITATION

This investigation depends on financial specialist's example for venture inclination,

mindfulness. This investigation would concentrate on the data from the salaried individuals
about their insight, observation, and conduct on various monetary products.Projected financial
statements also are used to prepare business valuations, which may be needed for financial
reporting purposes, estate planning, mergers and acquisitions, or even corporate litigation.

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Preparing financial forecasts requires complex analyses, which are subject to a number of
limitations and challenges.

 The aggregate number of budgetary instruments in the market is large to the point that
it needs a considerable measure of time and assets to investigate them all.
 As the examination depends on essential and also auxiliary information, the likelihood
of unapproved data can't be avoidable.
 The examination was carried on in Bengaluru.
 Investment analysis has been restricted to just 120 people

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 CHAPTER II

REVIEW OF LITERATURE
1. An empirical study of “Indian Individual Investors Behavior” by Syed Tabassum
Sultana (2010) was an attempt to know the profile of the investors and also to know
their characteristics so as to know their preference with respect to their investments.
The study also tried to unravel the influence of demographic factors like gender and
age on risk tolerance level of the investors.
2. Bhardwaj Rajesh, Raheja Rekha and Priyanka (2011), propounded in their study that
saving and investment pattern of salaried class school teachers of govt. and private
schools has depended upon income and they both get salary but the scale of the salaries
are different and saving patterns that is why is so different. Govt. teachers prefer to
invest the money for emergency purposes and private teacher’s emphasis on children
marriage and education.
3. Dr. S. Mathivannan and Dr. M. Selvakumar (2011) examined the saving and investment
patterns of salaried teachers of Sivakasi Taluk, Tamilnadu and they found that there is
great importance of money and money’s worth for them and They are regularly
preparing budgets for Expenditures and compare it with the actual expenditure and take
necessary actions if there are any deviations has arrived so far and they are influenced
by fashionable and costly items.
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4. Dr. Dhiraj Jain and Parul Jain (2012) concluded that the majority of the teachers the
money plays a big role and they initiated to prepare budgets and future forecasting for
income and expenditure and there is comparison between future and Standard budgets
to find out the deviations to meet certain money constraints It has been evident from
the study that most of the school teachers are saving their money for the purpose of
their children„s education, marriage and as security after retirement.
5. Dr. Ananthapadhmanabha Achar (2012) studied “Saving and Investment Behavior of
Teachers - An empirical study”. In the analysis individual characteristics of teachers
such as age, gender, marital status, and lifestyle determined the savings and investment
behavior of teaching community in the study region. They considered monthly family
income, stage of family life cycle, and upbringing status emerged as determinants of
their savings and investment behavior
6. Dr. Varsha Virani (2012) propounded in her study that In spite of low income the
teachers have been saving for future needs. The major impact on savings is due to the
level of income of the school teachers. The research shows that majority of the
respondents are saving money as Bank deposits for the safety of an unpredictable
future. The main avenues of investment are Bank deposits and the main purpose of
investment is for children education, marriage, and security after retirement.

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7. An empirical analysis on preferred investment avenues among rural and
semi urban households. kantidas Sanjay (2011)
The study reveals that in most cases investors across all categories found them to be
safer with taking up the insurance policies. A significant portion of respondents also
shows keen preference towards unit linked insurance policies so as to get short term
gains. It is also observed that most of the respondents show their keen interest towards
the insurance products so as to get tax benefits, life protection and average profitable
investment avenues. This is perhaps the most striking features of general investors and
the most important factor that influences the investment decisions. Further, it is
observed that the level of income also Influences the investment decisions. Higher
income group shows relatively high preference towards investment in share market,
conversely lower and average income group shows keen preference towards insurance
and banks as the most preferred investment avenues. In fine, the changing pattern of
Indian household savings is the result of a number of factors. The household savings in
India has experienced a variety of changes over the past one or two decades. The
changes in lifestyles and consumption models in a developing country like India have
also contributed towards those variations. The trends of investment by households are
not similar in nature and they vary between several financial instruments. This results
from the changing preference of the investors. Previously, household savings in
financial securities outperformed household savings in physical properties.
Nonetheless, the trend has changed now. Household savings in physical properties are
greater than household savings in financial instruments. This is assumed to be a
consequence of a preliminary preference shift. (KantidasSanjay(2011)Journal front line
research in arts and science ,Pg. no.26-36)
8. Savings and Investments Attitude of Salaried Class in CUDDALORE
DistrictL. Pandiyan, Dr. T. Aranganathan May-June 2012)
Investment climate must attract the people to save from their income at times even by
forgoing the enjoyment of comforts and luxuries. Countries can never sustain
development unless they have adequate savings. So, Favorable climate is to be assured
by the government to provide investment climate guaranteeing acquisition,
maintenance and liquidation of assets. Since savings is the main factor for investment,
the government though legal measures encourage savings accumulation. For the growth
of a disciplinant investment market a well organized monetary system though
protecting the investments against the eves of inflation or depletion is to be kept by
government. (Pandiyan, Dr. T. Aranganathan, IOSR Journal ofBusiness and
Management May-June 2012 pg. no.40-49)
9. Investment Pattern of Salaried People – A study in Coimbatore district R.
SreePriya ,P. Gurusamy ( Jan 2013)
This study has made an attempt to analyze the saving and investment pattern of salaried
class investor. An in dept. analysis is done to identify the attitude, factor influencing
investors to save and savings preference of investors. It is hoped that the saving public
(particularly salaried class) will analyse their savings and investment. This study

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 identified the problem faced by the investors and the impending problems could be
solved in the right direction. (R. SreePriya ,P. Gurusamy,2013 International journal of
scientific research ,issue 1)
10.A study of investment perspective of salaried people (private sector) prof.
ca yogesh p. patel; prof. cs charul y. patel (oct 2012)
Investment is the employment of funds with the aim of getting return on it. It is the
commitment of funds which have been saved from current consumption with the hope
that some benefits will accrue in future. Thus, it is a reward for waiting for money. So
the first step to investment is savings. In common usage, saving generally means putting
money aside, for example, by putting money in the bank or investing in a pension plan.
In a broader sense, saving is typically used to refer to economizing, cutting costs, or to
rescuing someone or something. In terms of personal finance, saving refers to
preserving money for future use -typically by putting it on deposit – this is distinct from
investment where there is an element of risk. The main elements of Investments are
Return, Risk and Time. This research aims to study and understand the behavioral
pattern of investment among the salaried people working in private sector and the
difference in perception of an individual related to various investment alternatives. It
also aims to provide an insight into factors considered for an appropriate investment.
Gives a wider scope to understand various issues related to investment by salaried
people. (prof. ca yogesh p. patel; prof. cs charul y. patel, oct 2012, Asia Pacific Journal
of Marketing& Management Review,pg no 145-146)
11. Investment Preferences of Salaried people. Nanavati Nihar K (June2012)
The investment ideology depends upon the individuality and many other factors. Here
is an attempt to find the solution to a problem of where to invest by a middle and lower
income level of the society. A market survey has been conducted of 25 people in sub-
urban Ahmadabad to identify their investment psychology and relevant preference. The
survey is giving us an insight towards traditional approach of savings and investment
pattern. The detailed analysis of the survey is presented hereunder. Inclination towards
safe, secure and tax beneficial investment is more than that of risky or high return
investment. With lower income segment, one cannot create wealth but with good
combination of investments, one can create a better and respectable living. Only a
sample size of 25 in a mega city Ahmadabad with large number of population the
conclusion drawn is always a kind of limitation of survey. The biased opinion and
hesitant respondents are also the constraints of the ideal study. (Nanavati Nihar K ,
Journal of Advances in Developmental ResearchJune2012)
12. A Study on People’s Preferences in Investment BehaviourN. Geetha,Dr.
M. Ramesh(Nov 2011)
The study on people’s choice in Investment Choices has been undertaken with the
objective, to analyze the investment choice of people in Kurumbalur. Analysis of the
study was undertaken with the help of survey conducted. After analysis and
interpretation of data it is concluded that in Kurumbalur respondents are medium aware
about various investment choices but they do not know aware about stock market,
equity, bound and debentures. The study is conducted by taking a limited number of
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 sample sizes which is stated earlier. And this study reflects the perceptions of those
respondents who are residing in Kurumbalur. There might be a chance that the
perceptions of the respondents of different are varied due to diversity in social life,
living pattern, income level etc. All the age groups give more important to invest in
Insurance, NSC, PPF and bank deposit. Income level of a respondent is an impotent
factor which affects portfolio of the respondent. Middle age group, Lower income level
groups respondents are preferred to invest in Insurance, NSC, PPF and bank deposit
rather than any other investment avenues. In Kurumbalur respondents are more aware
about various investment avenues like Insurance, PPF, bank deposits, small savings like
post office savings etc. For that awareness program has to be conducted by Stock
Brokering firms because most of the respondents unaware about this new service and
about stock market. (N. Geetha,Dr. M. Ramesh, IJMER,Nov 2011)
13. Mutual Fund Attributes and Investor Behavior(Feb2006)
This paper analyzes the dynamics of investor fund flows in a sample of socially
screened equity mutual funds. Mutual fund companies, which continually compete to
offer new funds in an effort to attract investor capital, can expect SR investors to be
more loyal than investors in ordinary funds. Nicolas P.B. Bollen(Feb2006)
14. Mutual fund is the better investment plan (2005) Institute of management
technology Ghaziabad
In few years’ mutual funds has emerged as a tool for financial well being. Mutual funds
have not only contributed to the growth story but have also helped families tap into the
success of Indian industry. This paper analyzes the market research on saving and
investment practices of the investor and preference of the investment in mutual funds.
Akilesh Mishra (2005)
15. Gold etfs : An emerging investment option(2008)
An investor has numerous investment options to choose from depending on his profile
and expectation of returns. different investment options represent risk-reward trade off
of the various types of investment options in stock market, gold exchange traded funds.
(Asia pacific journal of research in business management Dr.Prashnata Athma(2008)
16. Awareness of commodity market with reference derivative investor.
(2009)
Commodity futures markets are new and emerging market. The awareness of the market
is very less among the investor who can use this trade to sell their products without the
middlemen or agents it also help the actual buyer too. Here trader also can transfer his
risk to some other who can handle it or can appetite the risk trough hedging technique
17.A Study on Preferred Investment Avenues among Salaried Peoples with
Reference to Namakkal Taluk, Tamil Nadu, India V.R.Palanivelu
K.Chandrakumar (March 2013)
The study reveals that Investment is the employment of funds on assets with the aim of
earning income or capital appreciation. Investment is the most important things today.
People are earning more, but they do not know where, when and how to invest it. A
proper understanding of money, its value, the available avenues for investment, various
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 financial institutions, the rate of return/risk etc., are essential to successfully manage
one’s finance for achieving life’s goal. Through this study, an analysis has been made
into preferred investment avenues among salaried peoples in Namakkal Taluk, Tamil
Nadu, India. The results highlight that certain factors like education level, awareness
about the current financial system, age of investors etc. make significant impact while
deciding the investment avenues. The study is based on personal interviews with
salaried peoples, using a structured questionnaire. Actually, the present study identifies
the preferred investment avenues among the individual investors using self assessment
test. The study is based on primary sources of data which are collected by distribution
of a close ended questionnaire. The data has been analyzed using percentage and chi-
square test with the help of statistical software. There are large numbers of investment
opportunities available today. In this paper is going to briefly examine how the salaried
peoples managing their investment India respondents are medium aware about various
investment choices but they do not know aware about stock market, equity, bond and
debentures. All the age groups give more important to invest in Insurance and bank
deposit. Income level of a respondent is an important factor which affects portfolio of
the respondent. Middle age group, Lower income level groups respondents are
preferred to invest in Insurance and bank deposit rather than any other investment
avenues. (V.R.Palanivelu K.Chandrakumar, IBEA ,March 2013 Pg. no20-23)
18. Small Investors Perception on Post office saving Schemes Karthikeyan
(2001)
Karthikeyan has conducted research on Small Investors Perception on Post office
Saving Schemes and found that there was significant difference among the four age
groups, in the level of awareness for kisan vikas patra (KVP), National Savings Scheme
(NSS), and deposit Scheme for Retired Employees (DSRE), and the Overall Score
Confirmed that the level of awareness among investors in the old age group was higher
than in those of young age group. No differences were observed among male and female
investors except for NSS and KVP.Karthikeyan (2001) IJMER
19.Profile and awareness of salaried class investors and their attitude and
satisfactiontowards investment. (2008).
Krishnamoorthy,c, in his study has analyzed the profile and awareness of salaried class
investors and their attitude and satisfaction towards investment. In has been concluded
that all salaried people were aware of bank deposits, PF schemes, insurance schemes,
post office savings schemes, gold and however only few were aware of UTI
(Krishnamoorthy. C), (2008).

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 CHAPTER III
INDUSTRY PROFILE

What is an 'Investment Analysis'

Investment analysis is a broad term that encompasses many different aspects of investing. It
can include analysing past returns to make predictions about future returns, selecting the type
of investment vehicle that is best for an investor's needs or evaluating securities such as stocks
and bonds for valuation and investor specificity

Investment analysis can help determine how an investment is likely to perform and how
suitable it is for a given investor. It is key to any sound portfolio management strategy.
Investors who are not comfortable doing their own investment analysis can seek professional
advice from a financial advisor or other financial professional. Investment analysis can also
involve evaluating past investment decisions in terms of the thought process that went into
making them, how the decision affected a portfolio's performance and how mistakes can be
regarded and corrected. Key factors in investment analysis include entry price, expected time
horizon and reasons for making the decision at the time.

Performing Investment Analysis

In conducting an investment analysis of a mutual fund, an investor looks at factors such as how
the fund has performed compared to its benchmark. The investor can also compare the fund's
performance, expense ratio, management stability, sector weighting, style and asset allocation
to similar funds. Investment goals should always be considered when analysing an investment;
one size does not always fit all, and highest returns regardless of risk are not always the goal.

Types of Investment Analysis

When making investment decisions, investors can use a bottom-up investment analysis
approach or top-down approach. Bottom-up investment analysis entails analysing individual
stocks for their merits, such as valuation, management competence, pricing power and other
unique characteristics of the stock and company. Bottom-up investment analysis does not focus
on economic cycles or market cycles first-hand for capital allocation decisions but instead aims
to find the best companies and stocks regardless of economic, market or particular industry
macro trends. In essence, bottom-up investing takes more of a microeconomic approach to
investing rather than a macroeconomic one, which is a hallmark of top-down investment
analysis.

Top-down investment analysis emphasizes economic, market and industrial trends before
making a more granular investment decision to allocate capital to specific companies. An
example of a top-down approach is an investor evaluating industries and finding that financials
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will likely perform better than industrials; as a result, the investor decides his investment
portfolio will be overweight financials and underweight industrials. The investor then proceeds
to find the best stocks in each sector. On the contrary, a bottom-up investor may have found
that an industrial company made for a compelling investment and allocated a significant
amount of capital to it even though the outlook for its broader industry was negative.

Other investment analyses include fundamental analysis and technical analysis. Fundamental
analysis stresses evaluating the financial health of companies as well as economic outlooks.
Technical analysis stresses evaluating patterns of stock prices and statistical parameters.

Bottom-Up Investing

Bottom-up investing is an investment approach that focuses on the analysis of individual stocks
and deemphasizes the significance of economic cycles and market cycles. In bottom-up
investing, the investor focuses his attention on a specific company, rather than on the industry
in which that company operates or on the economy as a whole. This approach assumes
individual companies can do well even in an industry that is not performing.

Financial Analysis

Financial analysis is the process of evaluating businesses, projects, budgets and other finance-
related entities to determine their performance and suitability. Typically, financial analysis is
used to analyze whether an entity is stable, solvent, liquid or profitable enough to warrant a
monetary investment. When looking at a specific company, a financial analyst conducts
analysis by focusing on the income statement, balance sheet and cash flow statement.

Top-Down Investing
Top-down investing is an investment approach that involves looking at the overall picture of
the economy and then breaking down the various components into finer details. After looking
at the big-picture conditions around the world, analysts examine different industrial sectors to
select those that are forecast to outperform the market. From this point, they further analyze
stocks of specific companies to choose potentially successful ones as investments.

Sector Analysis
A review and assessment of the current condition and future prospects of a given sector of the
economy. Sector analysis serves to provide an investor with an idea of how well a given group
of companies are expected to perform as a whole.

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Trend Analysis
A trend analysis is an aspect of technical analysis that tries to predict the future movement of
a stock based on past data. Trend analysis is based on the idea that what has happened in the
past gives traders an idea of what will happen in the future. There are three main types of trends:
short-, intermediate- and long-term.

Horizon Analysis
The analysis of a security or portfolio’s total returns over a period of time, referred to as the
investment horizon. Horizon analysis allows an investor to assess performance under different
levels of risk, market yields and return expectations. This is referred to as scenario analysis.
The horizon date chosen is dependent on the needs of the analyst, and can correspond to a
business cycle or maturity date.

Fundamental Analysis
Fundamental analysis is a method of evaluating a security in an attempt to measure its intrinsic
value, by examining related economic, financial and other qualitative and quantitative factors.
Fundamental analysts study anything that can affect the security's value, including
macroeconomic factors such as the overall economy and industry conditions, and
microeconomic factors such as financial conditions and company management. The end goal
of fundamental analysis is to produce a quantitative value that an investor can compare with a
security's current price, thus indicating whether the security is undervalued or overvalued.

The Basics of Fundamental Analysis

Fundamental analysis uses real, public data in the evaluation a security's value. Although most
analysts use fundamental analysis to value stocks, this method of valuation can be used for just
about any type of security. For example, an investor can perform fundamental analysis on a
bond's value by looking at economic factors such as interest rates and the overall state of the
economy. He can also look at information about the bond issuer, such as potential changes in
credit ratings.

Attribution Analysis
Fundamental analysis is a method of evaluating a security in an attempt to measure its intrinsic
value, by examining related economic, financial and other qualitative and quantitative factors.
Fundamental analysts study anything that can affect the security's value, including
macroeconomic factors such as the overall economy and industry conditions, and
microeconomic factors such as financial conditions and company management. The end goal
of fundamental analysis is to produce a quantitative value that an investor can compare with a
security's current price, thus indicating whether the security is undervalued or overvalued.

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Quantitative analysis
Quantitative analysis refers to economic, business or financial analysis that aims to understand
or predict behavior or events through the use of mathematical measurements and calculations,
statistical modeling and research. Quantitative analysts aim to represent a given reality in terms
of a numerical value. Quantitative analysis is employed for a number of reasons, including
measurement, performance evaluation or valuation of a financial instrument, and predicting
real world events such as changes in a country's gross domestic product (GDP) growth rate.

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 CHAPTER IV

THEORETICAL BACKGROUND OF THE STUDY

” In investing money, the amount of interest you want should depend on whether
you want to eat well or sleep well.”

- J. Kenfield Morley

What is savings?
Income – expenditure = savings.

In today’s rapidly changing financial environment, it is critical that individuals not only protect
and enhance their current financial resources, but also prepare for future security and against
loss of income. This requires careful planning and prudent management of one’s financial
assets.

Financial planning is the key and the first step towards fulfilling ones dreams and aspirations
whether it is about providing for the family, buying a home or a car. Good planning also ensures
financial security for the family throughout life, even in the eventuality of the death of the
earning member of the family. An important component of a sound financial plan is not only
the inclusion of life insurance investment but also providing for adequate insurance coverage
in the plan. It is therefore critical for individuals to discuss their unique needs with qualified
Financial Planning Advisers who can assist in determining the right plan and amount of
coverage required. Consumers are now exposed to an array of modern and innovative products.
Depending on the needs of the customers, Investment is the certain present value for the
uncertain future reward. It entails arriving at numerous decision such as types, mix, amounts,
timing, grade etc. of investment and disinvestment. further such decision making has not only
to be order to get return on it’s in the future, which is known as investment. There are various
investment avenues such an equity, bonds, insurance and bank deposit etc. A portfolio is a
combination of different investment assets mixed and matched for the purpose of achieving
gold. There are various factors which affects investors Portfolio such as annual income
government, policy natural calamities, economical changes etc.

4.1 HISTORY OF INVESTMENT

In India, the financial profile of the general people changes significantly. Today individuals are
not just spending on products and services, prior considered an extravagance but at the same
time are taking a gander at more brilliant methods for contributing their cash. This is
fundamentally because of the reality, that individuals today not just have a more extensive
decision of putting resources into various sparing instruments but on the other hand are more
instructed and mindful about their decisions. Individuals are currently moving past the
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conventional sparing alternatives of settled stores, present office reserve funds on more
extensive venture choices as protection, shared assets, securities, values and even property.

4.2 INVESTMENT HAS DIFFERENT MEANING

 Investment includes work of assets with the point of accomplishing extra pay or
development in values.
 Lending money to other [interest]
 Purchasing of gold [value appreciation]
 Purchase of insurance plan [promised future benefits]

The essential quality of an investment is that it involves waiting for a reward.

“A commitment of funds made in the expectation of some positive rate of return”

“A sacrifice of current money or other resources for future benefits”.

Financial and economic meaning of investment: Investment is the allocation of monetary

resources to assets that expected to yield some gains or positive return over a given period of
time. These assets range from safety investment to risky investment. Investment in this form is
called as financial investment.

4.3 FEATURES OF AN INVESTMENT PROGRAM

In choosing specific investment investor will need definitely ideas regarding features which
their investment avenues should possess. These features should be consistent with the investor
general objectives an in addition, should afford them all the incidental convenience and
advantages. Which are possible under the circumstances? The following are the suggested
features as the ingredients from which many successful investors compound their selection
policies.

4.3.1 Safety of principle:

The investor to be certain of the safety of principle should carefully review the economics and
industry trends before choosing the types of investments. Error are avoidable and therefore, to
ensure safety principle, the investor should consider diversification of assets

4.3.2 Liquidity:
Even investor requires a minimum liquidity in his investment to meet emergence. liquidity will
be ensured if the investor buys a proposition of readily saleable securities out of his total
portfolio.

4.3.3 Income stability:

Regularly of income at a consistent arte is necessary in any investment pattern. Not only
stability, it is also important to see that income is adequate in after taxes. It is possible to fins
outcome good securities, which pay particularly all their earnings in dividends.
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4.3.4 Appreciation and purchasing power stability:
Investor should balance their portfolios to fight against any purchasing power stability. Investor
should judge price level inflation, explore their possibility of gain and loss in the investments
available to them.

4.3.5 Legally and freedom from care:

All investments should be approved by law. Law relating to minors, trusts, shares and insurance
be studied will brings out many problems for the investor.

4.3.6 Tangibility:
Tangibility securities have many times lost their values due to price level inflation. Some
investor prefers to keep a part of their wealth invested in tangibles properties. Under section
80C of the Income Tax Act, certain investments are deductible from gross total income. This
tax exemption is available across individual tax slabs. If you earn Rs4 lakhs per annum and
make investments of Rs1 lakh in 80c instruments, then the taxable amount will be Rs3 lakhs.
Section 80C benefit has been provided to encourage long term savings and investments. You
should choose a combination of fixed income and market linked investments depending on
your age and risk profile www.rupeetimes.com)The economy is witnessing an increasing trend
in gross domestic savings as a proportion of GDP since 2001-02, with the savings ratio having
increased from 26.5 per cent in 2002-03 to28.9 per cent in 2003-04 and further to 29.1 per cent
in 2004-05. The rise in savings has been witnessed across all the constituent sectors, the sole
exception being household sector for2004-05 which witnessed a decrease from 23.5 per cent
in 2003-04 to 22.0 per cent in 2004-05. ( report of the working group on savings for the eleventh
five year plan(2007-08 to 2011-12)

4.4 FINANCIAL MEANING OF INVESTMENT

 commitment of a person’s funds to derive future income or appreciation in the
estimation of their capital interest
 Dividend
 Premiums
 Pension benefits
 Purchasing of shares/debentures
 Post office saving certificates
 Insurance policies
 Economic Meaning of Investment
 Net expansion to the economy's capital stock which comprises of merchandise
and ventures that are utilized as a part of the generation of different products
and service
 Formation of new and productive capital

15 | P a g e
  New construction
 Plant and machinery
 Inventories
 All these investments generate physical assets
4.5 RISK OF AN INVESTMENT
 Maturity period
 The lower credit worthiness
 Nature of the investment e.g. Equity shares carry higher risk and debt
instruments bond/debentures carry lower risk compare with equity.

Safety
 Every investor expects to get back his capital on maturity without loss and
without delay
 Safety is another feature which an investor desires for his investments
 Safety implies the certainty of return of capital without loss of money or time.

Initial tax benefit

The tax relief enjoyed at the time of making the Investment.

A continuing tax benefit represents the tax shield associated with the periodic returns from the
Investment.

Terminal Tax benefit

Relief from taxation when an investment is realized or liquidate

Ex: withdrawal from a public provident fund account is not subject to tax

Objectives of Investment Each investor tries to maximise his welfare by choosing the optimum
combination of risk and expected return in accordance with his preference and capacity.

4.6 INVESTORS’ OBJECTIVES

 Maximization of return
 Minimization of risk
 Hedge against inflation
 Savings kept as a cash are barren(unproductive)
 Don't earn anything
 Loses its value due to rise in prices, since inflation erodes the value of money
 If the investment cannot earn as much as the rise in prices, the real rate of return
would be negative

Actual return realized from an investment may different from the expected return – risk
16 | P a g e
  Government securities- low risk [practically risk free]
 Debentures and preference shares-medium risk
 Equity shares- high risk

4.7 ATTITUDE TOWARDS RISK

Some investors are risk averse

Some investors have kinship to risk

 Risk bearing capacity of an investor is a function of his income

 A person with higher income is assumed to have a higher risk bearing capacity

Every financial specialist tries to augment his welfare by picking the ideal blend of hazard and
expected return as per his inclination and limit

 Investment & Speculation

 Investment and speculation are closely related.
 Both involve purchase of assets-shares & securities.
 Risk
 Capital Gain
 Time period

Risk: -
 It refers to the possibility of incurring a loss in a financial transaction
 High return is associated with higher risk

Investor: commits his funds in low risk investment

Speculator: commits his funds to higher risk investment to achieve high returns

Capital Gain: -
 Speculator achieve profits through price changes – capital gains
 He is interested in capital gain rather than income from an investment
 Purchase of securities proceeded by proper investigation and analysis to receive
stable income & capital appreciation
 Speculation associated with buying at lower price and selling at higher price to
make large capital gain
 Speculator engages in frequent buying and selling transaction
 Time period
 Investment is long-term in nature – waiting for returns at consistent basis
 Speculator is interested in short term trade gain
 Through buying and selling of instruments

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 Both investment and speculation aim at good returns but the difference is
motives and methods
 Investment sometimes described as a well-grounded and carefully planned
speculation Investment & Gambling
 Gambling is quite the opposite of investment. Typical examples are horse races,
card games, lotteries, etc.
 It consists in taking high risks not only for high returns, but also for thrill and
excitement.
 It is unplanned and non-scientific
 In gambling artificial and unnecessary risks are created from increasing returns
 But an investment is carefully planned, evaluated
 Allocate funds to various investment
 Concentrate on safety
 Expecting moderate and continuous return for increasing the returns

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Salaried Investors:
The respondent of research study consist only those people who earning fixed Income as salary
so the study included only salaried group of people. The Investment pattern of the salaried
employees is different due to safety, regular flow of income, tax saving benefits, security,
Retirement benefits rather than professionals & businessman.

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4.8 INVESTMENT OPTION AVAILABLE
In India there are lot many Investment avenues are available. The following figure is pretty
self-explanatory regarding investment options. Investments are broadly classified into five
categories i.e. Equity, Debt, Real Estate, Commodities and Miscellaneous.

4.8.1Equity:
Equity is one of the most risky areas. But, at the same time this is also a place where an investor
can earn high rates of returns that will push up the returns of the entire portfolio. There is a
need for the investor to separate the speculation from the investment. Investment in equities
can be made directly by the purchase of shares from the market or it can be done through the
mutual fund route, whereby the investor buys the mutual fund units and the fund in turn buys
equity

4.8.2 Debt:
Debt is a route that most people will know and have the necessary experience of. There is a
wide range of debt instruments that are present from bank fixed deposits to company fixed
deposits. Debt is simple as the investor ill earn at a fixed percentage of the investment, which
will then be returned to the investor at the time of maturity or redemption of the investment.

4.8.3 Mutual Funds:

This is an emerging area for investment and there is a large variety of schemes in the market
to suit the requirements of a large number of people. In finance, in general, you can think of
equity as ownership in any asset after all debts associated with that asset are paid off. For
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example, a car or house with no outstanding debt is considered the owner's equity because he
or she can readily sell the item for cash. Stocks are equity because they represent ownership in
a company.

4.8.4 Corporate Debenture:

Corporate debentures are normally backed by the reputation and general creditworthiness of
the issuing company. It is a type of debt instrument that is not covered by the security of
physical assets or collateral. Debentures are a method of raising credit for the company and
although the money thus raised is considered a part of the company's capital structure, it is not
part of the share capital.

4.8.5 Company Fixed Deposit:

Company fixed deposit is the deposit placed by investors with companies for a fixed term
carrying a prescribed rate of interest. Company FDs are primarily meant for conservative
investors who don't wish to take the risk of vagaries of the stock market. But The 2013 IBEA,
International Conference on Business, Economics, and Accounting 20 – 23 March 2013,
Bangkok – Thailand experts say the due diligence that an investor should undertake is similar
to that before buying shares. Getting lured by the high interest rate alone is not advisable.

4.8.6 Fixed Deposits:

Fixed Deposits with Banks are also referred to as term deposits. Minimum investment period
for bank FDs is 30 days. Deposits in banks are very safe because of the regulations of RBI and
the guarantee provided by the deposit insurance corporation. The interest rate on fixed deposits
varies with term of the deposits Bank deposits enjoy exceptionally high liquidity. Loans can
raise against bank deposits.

4.8.7 Post Office Savings:

Post Office Monthly Income Scheme is a low risk saving instrument, which can be availed
through any Post Office The interest rate on deposits is slightly higher than banks. The interest
is calculated half yearly and paid yearly Life Insurance Policies: Insurance companies offer
many investment schemes to investors. These schemes promote saving and additionally
provide insurance cover. L1C is the largest life insurance company in India. Insurance policies,
while catering to the risk compensation to be faced in the future by investor, also have the
advantage of earning a reasonable interest on their investment insurance premiums.

4.8.8 Public Provident Fund (PPF):

The 2013 IBEA, International Conference on Business, Economics, and Accounting 20 – 23
March 2013, Bangkok – Thailand A long term savings instrument with a maturity of 15 years.
21 | P a g e
A PPF account can be opened through a nationalized bank at anytime during the year and is
open all through the year for depositing money. Tax benefits can be availed for the amount
invested and interest accrued is tax-free. A withdrawal is permissible every year from the
seventh financial year of the date of opening of the account

4.8.9 Real Estate:

Investment in real estate also made when the expected returns are very attractive. Buying
property is an equally strenuous investment decision. Real estate investment is often linked
with the future development plans of the location. At present investment in real assets is
booming there are various investment source are available for investment which are directly or
indirectly investing real estate. In addition to this, the more affluent investors are likely to be
interested in other type of real estate, like commercial property, agricultural land, semi urban
land, and resorts. The bullion offers investment opportunity in the form of gold, silver, art
objects (paintings, antiques), precious stones and other metals (precious objects), specific
categories of metals are traded in the metal exchange.

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 CHAPTER – 5

ANALYSIS & INTERPRETATION

Statistical tools and techniques used: The data has been analyzed by graph and charts

Table 5.1 Analysis of Demographic Factors Of Investors

S. No Investor’s particulars No of respondents Percentage (%)
Married 80 66.67

1 Marital status
Unmarried 40 33.33

Up to 30 years 36 30.00
31 – 40 40 33.33
2 Age
41 – 50 20 16.67
Above 50 years 24 20.00
Public sector 76 63.33
3 Occupation
Private sector 44 36.67
SSLC 20 16.67
HSC 28 23.33
4 Educational Qualification Graduate 36 30.00
Post Graduate 24 20.00
Others 12 10.00

Source: Primary data

The above table demonstrates that 66.67% of the respondents are hitched and whatever is left
of the 33.33% of the respondents are unmarried. With regards to age, it is discovered that 36
speculators 30% have a place with the age gathering of up to 30 years. Thus, it can be deduced
that the more youthful age considers reserve funds and interests in their initial period of
business. Financial specialists in the age gathering of 31-40 years are 40 in numbers
constituting 33.33%. Speculators in the age gathering of 41 to 50 years are 20 in numbers
constituting 16.67%. Speculators in the age gathering of over 50 years are 24 in numbers
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constituting 20%. Among the respondents 20 respondents 16.67% are with a High School or
Matriculation level, 28 respondents 23.33% with Higher Secondary, 36 respondents 30% are
graduates, though most of the financial specialists are graduates. Postgraduates constituting
20% and 12 respondents 10% has a place with others. As respects to occupations, 63.33% of
the financial specialists are working openly areas and 36.67% of the speculators are working
in private parts.

Table 5.2: Awareness About the Investment Avenues

S.no Awareness about the investment avenues No. of Respondents Percentage (%)
1 Yes 74 61.67
2 No 46 38.33
Total 120 100

Analysis-
From the above table, we can realize that out of 120 respondents 61.67% had the learning on
different speculation roads and the staying 38.33% of them had no information about different
venture choices.

Chart no-5.1 Awareness About the Investment Avenues

Awareness About the Investment Avenues

YES NO

Source: Primary Data

Interpretation-

Above chart demonstrates that the majority of the respondents think about the different
investment pattern of the investment.
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Testing Hypothesis

HO : “There is no significant relationship between educational qualification and

awareness of the investors”. To test the above hypothesis, the researcher has
used the „chi- square test‟.

Table 5.3: Observed Frequency on educational qualification

Education Awareness Not awareness Total

SSLC 12 8 20

HSC 18 10 28

Graduate 22 14 36

Postgraduate 18 6 24

Others 4 8 12

Total 74 46 120

Table 5.4: CHI-SQUARE TEST ON EDUCATIONAL QUALIFICATION

O E (O-E) (O-E)2 (O-E)2/E

12 12.33 -0.33 0.1089 0.0088
8 7.67 0.33 0.1089 0.0142
18 17.267 0.73 0.5329 0.0309
10 10.73 -0.73 0.5329 0.0497
22 22.2 -0.2 0.0400 0.0018
14 13.8 .2 0.0400 0.0029
18 14.8 3.2 10.24 0.6919
6 9.20 -3.2 10.24 1.1130
4 7.40 -3.4 11.56 1.5622
8 4.60 3.4 11.56 2.5130
Total 5.9884

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Degrees of Freedom V = (r - 1) (c - 1) V=(5-1)(2 -1) V=4

4 degrees of freedom 5% level of significance is 9.488

The calculated value (5.99) is less than the table value. So hypothesis is accepted.

Hence it is concluded that, “There is no significant relationship between educational

qualification and awareness of the investors”

Testing Hypothesis

HO : “There is a significant relationship between income level and awareness of the investors”.
To test the above hypothesis, the researcher has used the „chi- square test‟.

Table 5.5 Observed Frequency on Income level

S.No Income level Awareness Not awareness Total

1 Up to Rs.10,000 12 14 26
2 Rs, 10,001 – Rs. 20,000 20 10 30
3 Rs. 20,001 – Rs.30,000 24 16 40
4 Above Rs.30,000 18 6 24
Total 74 46 120
Source: Primary data

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Table 5.6: CHI- SQUARE TEST ON INCOME LEVEL

O E (O-E) (O-E)2 (O-E)2/E

12 16.03 -4.03 16.24 1.01

14 9.97 4.03 16.24 0.82

10 9.25 0.75 0.56 0.06

5 5.75 -0.75 0.56 0.09

12 12.33 -0.33 0.10 0.01

8 7.66 0.34 0.11 0.01

9 7.40 1.60 2.56 0.34

3 4.60 -1.60 2.56 0.55

Total 2.38

Degrees of Freedom

V = (r - 1) (c - 1)

V=(4-1)(2 -1)

V=3

3 degrees of freedom 5% level of significance is 7.815

The calculated value (2.38) is less than the table value. So hypothesis is accepted.

Hence it is concluded that, “There is no significant relationship between income level and
awareness of the investors”

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 Table 5.7: Objectives of Investments
S.no Objectives No. of Respondents Percentage(%)
1 High return 26 21.67
2 Future security 22 18.33
3 Tax benefit 12 10.00
4 Children’s education 14 11.67
5 Children’s marriage 20 16.66
6 Personal safety 26 21.67
Total 120 100
Source: Primary Data

Analysis: -

The targets of the speculation differ starting with one then onto the next. The majority of the
speculators contribute their funds for the target of exceptional yield and individual wellbeing,
trailed by 22 respondents favoured future security and 20 respondents chose children’s
marriage as their venture destinations.

Chart 5.2: Investment Objective

Investment Objective

High return

Personal safety

Children’s marriage

Children’s education

Tax benefit

Future security

0 5 10 15 20 25 30

Interpretation:

Children’s education and tax cut has the most minimal need among the venture destinations.
Subsequently exceptional yield and individual security are the prime thought processes of
speculation.

28 | P a g e
Table 5.8: Sources of Information About Various Investments

S.no Sources No. of Respondents Percentage(%)

1 Family members/relatives 30 25.00

2 Friends 26 21.67

3 TV/Newspaper 20 16.67

4 Financial broker 18 15.00

5 Internet 12 10.00

6 Books/ Magazines 14 11.66

Total 120 100

Source: Primary Data

Analysis: -

Among the different sources of investment information 25% of the respondents get information
through family members and relatives. Friends (21.67%) are getting second place. T/V and
newspaper (16.67%) are getting third place followed by others. From the above it is clear that
most of the investors dependent on the family members and relatives.

29 | P a g e
Chart 5.3: Sources of Information About Various Investments

OTHER

T.V./NEWSPAPER

FRIEND/RELATIVE

BANKER

BROKER

0 10 20 30 40 50 60 70

Interpretation:

Out of these salaried individuals most of the respondent got the investment alternatives from
friend and relative rather than TV and newspaper. Bankers are there who also promoting the
for the investment who are performing fare better than the brokers advertisement. There are
some other sources the respondents got the information about the investment

30 | P a g e
Table 5.9: Working sector

S.no Working sector No. Of Respondents Percentage (%)

1 Government 40 33.33
2 Non-government 80 66.67
Total 120 100

Analysis-

From the data it can be inferred that out of 120 33.3% people work in government sector and
66.67% in non-governmental organisation.

Chart 5.4: Working Sector

Working sector

40

80

GOVERNMENT NON-GOVERNMENT

Interpretation:

From the data it can be inferred that most of the respondent are working in private sector where
less respondents are working in governmental sector. That reveals that there are more scope in
private sector for the IT employee.

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Table 5.10: Investment plan in future

S.no Investment plan in future No. Of Respondents Percentage (%)

1 Yes 115 95.83
2 No 5 4.17
Total 120 100

Analysis-

From the data it can be inferred that out of 120, 95.83% people are investing for the future
where as 4.17% people are not interested in investment.

Chart 5.5: Investment plan in future

INVESTMENT PLAN IN FUTURE

YES
NO

115

Interpretation:

From the above chart it can conclude that people should invest for their future as 95.83%
people agree for it.

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 Table 5.11: Preferences of the investors

S. No Options No. of Respondents Percentage (%)

1 Bank deposits 36 30.00
2 Post office 20 16.67
3 Gold 30 25.00
4 Insurance 18 15.00
5 Real estates 6 5.00
6 Stock market 6 5.00
7 Others 4 3.33
Total 120 100
Source: Primary Data

Analysis

The above table shows that out of 120 respondents 25% of the investors prefer to invest their
money in Gold, 30% of the investors invest their money in bank deposits, 16.67% of investors
invest their Money in postal deposits, 15% of the investors invest their money in insurance, 5%
of the respondents invest their money in real estate and stock market and the remaining 3.3%
of the investors invest their money in others. Most of the investors invest their money in gold
and bank deposits, because they want only safety to their investment amount.

33 | P a g e
 Chart 5.6: Investment Preferences

Preferences of the investors

40

35

30

25

20

15

10

Bank deposits Post office Gold Insurance Real estates Stock market Others

Interpretation:

From the data it can be inferred that out of 120 most of the people prefer invest in land and
bank savings. People also want to invest in gold, bond and stock, mutual fund from which bank
deposit is highest.

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Table 5.12: Decision on investment

S.no Documentation No. of Respondents Percentage (%)

1 Randomly 5 4.17

2 As per the reference 15 12.5

3 As per the field of interest 20 16.67

4 As per the return scheme 50 41.67

5 As per the financial consultant 30 25

Total 120 100

Analysis-

From the data it can be inferred that out of 120, 42% people invest as per the return scheme
,17% people want to invest where they want to invest that may be whatever only .4% people
randomly investing somewhere as they are not aware of the risk. When very less people are
investing as per reference as they don’t want to waste their money for the shake of the relation.
Lastly a very less people are interested to go for a financial adviser.

35 | P a g e
 Chart 5.7: Investment decision

DECISION ON INVESTMENT
Randomly
As per the
as per the financial 4%
reference
consultant 12%
25%

As per field of
interest
17%

As per return
scheme
42%

Interpretation:

From the above chart we can infer that major portion of respondent invest as per the return
scheme where only a few invest randomly. Some respondent invest in the field where they
have the interest. Only 25% respondent are taking the advise of the financial consultant as
they are aware about that and they don’t want to invest in somewhere which can not let them
sleep.

36 | P a g e
Table 5.13: Proper documentation before investment
S.no Documentation No. of Respondents Percentage (%)
1 Yes 80 66.67
2 No 0 0
3 Sometimes 15 12.5
4 Depends on the agent and scheme 25 20.83
Total 120 100

Analysis-

From the data it can be inferred that out of 120, 67% people read document before any
investment, where there is not a single person who careless that they won’t read the document.
Where 12% read some times and some believe the person, who approach for the investment.
Only 21% people go for financial adviser

Chart 5.8: Proper documentation before investment

Documentaion

21% YES

NO

12% SOMETIMES

0% 67%
DEPENDS ON THE AGENT AND
SCHEME

Interpretation:

From the above chart most of the respondent are concern about their money. They read all the
document before the investment but there are no one who don’t care about his/her money.
There are some people who sometimes read and sometime don’t. The main point is that only
21% people are have faith on the agent. So they don’t go through the documentation.
37 | P a g e
Table 5.14: Investing level

S.no Investment and return expectation No. of Respondents Percentage (%)

1 As much possible 80 66.67
2 Not so much 20 16.67
3 Less amount 15 12.50
4 Very less amount 5 4.17
Total 120 100

Analysis-

From the data it can be inferred that out of 120, 80(67%) respondent interested in investing as
much as possible for their future, 20(17%) respondent want to invest not so much but interested
in investment where 15(13%) respondent just want to invest just less amount as they are
concern about their future while only 5 (4%) respondent don’t bother about their future want
very less amount to invest.

Chart 5.9: Investing level

INVESTING LEVEL

As much as possible Not so much Less amount Very less amount

Interpretation:

The thing is that can be conclude from the above chart that most of the respondent want to save
for their future use, as they know about the involvement of money in the life. Respondents are
like that they don’t that much as they also concern about the present. There are also few people
who want to live in present who don’t care about the future.

38 | P a g e
Table 5.15: Investment and return expectation
S.no Investment and return expectation No. of Respondents Percentage (%)
1 High return and high risk 20 16.67
2 High return and low risk 40 33.33
3 Low return and high risk 35 29.17
4 Low return and low risk 25 20.83
Total 120 100

Analysis-

From the above data it can be stated that most of the respondent want high return at a low
risk. But very much less respondent want to invest in less return in less risk. There are few
respondent as 15 (13%) who want invest in low return with low risk

Chart 5.10 Investment and return expectation

Investment and return expectation

High return and high risk

High return and low risk
Low return and high risk
Low return and low risk

Interpretation:

Here respondent in most want high return at low risk as usual but there are some people are
also want to invest in high risk and high return. Some are also not interested in return ,it seem
they are to serve people.

39 | P a g e
Table 5.16: Way of approach towards investment
S.no Way of approach towards investment No. of Respondents Percentage (%)
1 Yes 20 16.67
2 No 40 33.33
3 Depend on the risk level 35 29.17
4 Depend on the scheme agent 25 20.83
Total 120 100

Analysis-

From the data it can be inferred that out of 120,17% people analyse the advantage and
disadvantage of the investment,20% people don’t analyse about the investment just put their
money where as 16.4% people sometime analyse the investment. Only 7.3% have the faith on
the agent.

Chart 5.11: Way of approach towards investment

Way of approach towards investment

21% 17%
Yes
No
Depend on the risk level
33% Depend on the risk level
29%

Interpretation:

From here we can conclude that most of the respondent are not bothered about from where
the money is coming, they just want money. There are some respondent who want money but
not on any illegal way. Some people want money from illegal way but they take care about
the risk factor.

40 | P a g e
Table 5.17: Knowledge of the scheme
S.no Knowledge on the scheme No. of Respondents Percentage (%)
1 Yes 86 66.67
2 No 2 1.67
3 Sometimes 14 11.67
4 Depend on the agent 18 15
Total 120 100

Analysis-

From the data it can be inferred that out of 120,86 (66.67%) have knowledge on the scheme of
investment, 18 (15%) respondent

Chart 5.12 Knowledge on the scheme

Knowledge on the scheme

15%
Yes
11% No
2% Sometimes
Depend on the agent
72%

Interpretation:

The respondent at most have the knowledge on the scheme. It seems they are bothered about
their money. While only 2% means very less respondent are not bothered about the money

41 | P a g e
Table 5.18: Tax Assumption

S.no Tax Assumption No. Of Respondents Percentage (%)

1 Yes 113 94.17
2 No 7 5.83
Total 120 100

Analysis-

From the data it can be inferred that out of 120, there are 94.17% respondents seek tax advisors’
opinion before investment when rest 5.83% people don’t go for the tax advisor.

Chart 5.13: Tax assumption

Tax Assumption

6%

Yes
No

94%

Interpretation:

From here over all respondents invest by taking care about the tax assumption. Where only a
few respondents don’t care about that. It seems they want to invest money randomly with out
taking care about the tax rate and the tax effect.

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Table 5.19: Knowledge on NSE & SEBI

S.no Knowledge on NSE & SEBI No. Of Respondents Percentage (%)

1 Yes 63 52.5
2 No 57 47.5
Total 120 100

Analysis-

From the data it can be inferred that out of 120, there are 53% respondents who have the
knowledge about the NSE and SEBI and rest 47.5% don’t have that knowledge.

Chart 5.14 Knowledge on NSE & SEBI

Knowledge on NSE & SEBI

Yes no

Interpretation:

From the above chart it can be concluded that more than half of the respondent are aware of
the rule made by the SEBI & NSE. But it is a problem for those people who don’t have
knowledge on this because of that so many chit fund company are making fool to people.

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Table 5.20: Matching the standard rule

S.no Matching the standard rule No. Of Respondents Percentage (%)

1 Yes 45 71.43
2 No 18 28.57
Total 63 100

Analysis-

From the data it can be inferred that out of 120, 71% said that they read all the document and
match with the standard rules made by government where 29% people are not bothered about
any rule regulation. They just want their money to grow in anyhow.

Chart 5.15: Matching the standard rule

Matching the standard rule

Yes No

Interpretation:

From the data it can be inferred that out of 120, 71% said that they read all the document and
match with the standard rules made by government where 29% people are not bothered about
any rule regulation. They just want their money to grow in anyhow.

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Table 5.21: Preference in Investment

S.no Matching the standard rule No. Of Respondents Percentage (%)

1 Long term 15 12.50
2 Mid term 50 41.67
3 Short term 55 45.83
Total 120 100

Analysis-

The above data show that 42% respondent want to invest in midterm investment ,46% want
to invest in short term investment where ever only 12% respondent want invest in the long
term investment.

Chart 5.15: Preference in Investment

Preference in Investment

12%

Long Term
46%
Mid Term
Short Term
42%

Interpretation:

The above data show that most of the respondent prefer the short term investment as they
think money today is batter than money tomorrow. But not less people a want to invest in mid
term investment as they don’t think that the long term investment is profitable to them in this
rapid growing world
45 | P a g e
 CHAPTER-VI

6.1 FINDINGS:

1. The analysis results that 61.67% respondents had the learning on different investment and the
staying 38.33% of them had no information about different venture choices.

2. 4 degrees of freedom 5% level of significance is 9.488. The calculated value (5.99) is

less than the table value. So hypothesis is accepted. Hence it is concluded that, “There
is no significant relationship between educational qualification and awareness of the
investors”
3. 3 degrees of freedom 5% level of significance is 7.815. The calculated value (2.38) is
less than the table value. So hypothesis is accepted. Hence it is concluded that, a
significant relationship between income level and awareness of the investors can not
be judged by analysing the income level.
4. It is understood that most of the investors have a monthly income of Rs. 20,001 to Rs.
30,000 as it is the 40% of the total respondents.
5. This can be inferred that people want to invest for high return and personal safety as it
is 21.67% as highest. People also save for the future security as it 18.33% and the 2nd
highest that respondent have chosen. People are more conscious and invest for tax
benefit. People are not bothered about there children for education as 10% is for
Children’s education. it seems people are well known about the education loan and
all. In India people are bothered very much about their about grand marriage
ceremony as 16.66% respondent chosen for Children’s marriage.
6. Study reveals that major information sources for investments option are from relatives
and family member as the respondent is 21.67% are the highest, the TV/Newspaper
come as these are 16.67% of total respondent while 15% from financial broker as well
as 11.66% from Books/ Magazines. Lastly 10% from internet as a least means people
don’t think it safe when it is randomly in internet as it can’t provide the desired
information wanted by the investor.
7. This results that most of the people are interested to invest for the future as 95.83%
people agree for it, where only 4.17% people are not interested in investment means
they want to live in present and to enjoy the luxury life.
8. 67% of salaried individuals prefer to invest in private sector it seems there are less scope
in government sector for the IT people because 33% are only in government sector
9. People invest in various sector but they prefer bank deposit most safest deposit as 30%
respondent choose bank deposit as a most preferable investment including gold by 25%
of total respondents.
10. Investment should be as per the return scheme as 41.67% of respondent are preferring
from the total respondent. Investment should not be randomly as least of the respondent
at 4.17% are in the favour of the random investment.

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11. Proper documentation should be done before the investment as 80% of the respondent
agree with it. No one agree should invest without proper documentation agent are
trustworthy at 20.83% of total respondents.
12. One investment is like that where an individual can get more at low risk as the
respondent has agreed in 33.33% from the total respondent. The investment should not
be don’t where risk is high in order to get more profit as only 16.67% agree for it.
13. Money is better to be earned in a legal way as 33.33% respondent told no to it and in
majority. While there are only 16.67% who don’t care about the procedure they just
want to earn money.
14. The investment should be done by keeping the eye on the tax assumption as most of the
individuals are aware about different tax benefits & 94.17% respondents are agreeing
that they go for the tax assumption while investing
15. Its seems people are familiar with the standard rule made by SEBI & NSE as 52.5%
respondent are agree with the standard rule.
16. An investment should match the standard rule made by the SEBI & NSE as 71.43%
respondent who know about the SEBI & NSE standard rule before it commences.
17. Short term investment are most preferable as it provide the benefit within a short period
of time as 45.83% preferred for this, where long term are not much preferred as it gives
the benefit after a long time but in a huge which is 12.50% of total respondent.

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6.2 SUGGESTIONS:

 The study reveals that people invest long energy watching TVs, therefore it is
suggested that money-related counsel or monetary organization should utilize T.V. as
an advertising media.
 Interests in government area should increment.
 An investor who needs to evade hazard ought to put resources into sparing the record,
FD, provident assets, National sparing testament, post office sparing, life coverage
and so forth.
 Investments avenues like share market, mutual fund require more awareness among
salaried people so more people can be pulled in.

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6.3 CONCLUSION:

This report is an impression of the mindfulness and components considering, chance taking the
capacity of the different classifications of salaried people. Determination of the ideal venture
road is a troublesome errand to a person. An exertion is made to the character the taste and
inclination of an example of people chose by conspiracy and snowball examining. Regardless
of numerous confinements to the examination I was fruitful in distinguishing a few ventures
designs there is some ordinariness in these people. This report packed in distinguishing the
elements considered people previously speculation, mindfulness level of salaried people
towards different venture roads are recognized in view of their occupations, financial
specialists hazard in choosing a specific road. The presents examine has imperative
ramifications for speculation administrator as it has turned out with certain fascinating aspects
of a salaried person. The individual speculator still wants to put resources into monetary items
which give hazard free returns. This affirms people regardless of the possibility that they are
of high wage, accomplished, free are traditionalist individual like to play safe. The speculations
item fashioner can plan items which can take into account the people, who are generally safe
tolerant, impose funds and utilize T.V. as a promoting media as they appear to invest long
energy watching TVs. The examination additionally reaches an imperative determination from
think about that the people are quick to put resources into midterm items.

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