A STUDY ON AWARENESS AND PREFERENCE OF INVESTORS

ON SELECTING INVESTMENT AVANUES

A Study based on Kozhikode District

Project Report Submitted to the University of Calicut in partial fulfillment of the

requirement for the award of degree of Master of Commerce

Submitted By

ASHIK MK

REG.NO:RGARMCM005

Under the Supervision and Guidance of

Prof. (Dr.) P MUSAFER AHAMED

PG Department of commerce

SREE GOKULAM ARTS AND SCIENCE COLLEGE

2017-19
 POST GRADUATE DEPARTMENT OF COMMERCE

SREE GOKULAM ARTS AND SCIENCE COLLEGE

Balussery, Koottalida, Calicut, Pin-673612

Gmail: sgascollege@gmail.com

CERTIFICATE

This is to certify the project report entitled “A STUDY ON AWARENESS AND

PREFERENCE OF INVESTORS ON SELECTING INVESTMENT AVANUES” Has been
prepared by ASHIK MK fourth semester M.Com student, post graduation department of
commerce, SREE GOKULAM ARTS AND SCIENCE COLLEGE under university of Calicut.

The external viva held on…………………………………………………………and commented

as………………………………………………………….

Internal examiner……………………. External examiner……………...

 SREE GOKULAM

ARTS AND SCIENCE COLLEGE

POST GRADUATE DEPARTMENT OF COMMERCE

Balussery, Calicut, Pin-673612

Gmail:sgascollege@gmail.com

CERTIFICATE

This is to certify that ASHIK.MK. (Reg. No.RGARMCM005) is a student of the post graduation
department of commerce, SREE GOKULAM ARTS AND SCIENCE COLLEGE,
BALUSSERY. He has prepared this project entitled “A STUDY ON THE AWARENESS AND
PREFRENCE OF INVESTORS ON SELECTING INVESTMENT AVANUES” in partial
fulfillment of the requirement for the award Degree of Master of Commerce, University has been
submitted any degree, diploma or recognition.

Mrs. JISHA.K.V.

(Head of the Department

Asst. prof. Dept. of commerce)

 SREE GOKULAM

ARTS AND SCIENCE COLLEGE

Balussery, Calicut, PIN 673612

CERTIFICATE

This is to certify that the project report entitled “A STUDY ON THE INVESTMENT
AWARENESS AND PRFERENCE OF INVESTORS ON SELECTING INVESTMENT
AVANUES” Has been prepared by ASHIK .MK. fourth semester M.Com student, post graduation
department of commerce, SREE GOKULAM ARTS AND SCIENCE COLLEGE under my
guidance.

I also certify that this project report has not been submitted at any time to any other university or
institute for the award of any degree, diploma or recognition

Prof. Dr. P MUZAFIR AHMMED

(Supervising teacher)
 DECLARATION

I ASHIK.MK. student of department of commerce SREE GOKULAM ARTS AND SCIENCE

COLLEGE du hear by declare that the project report entitled “A STUDY ON INVESTMENT
AWARENESS AND PREFERENCE OF INVESTORS ON SELECTING INVESTMENT
AVANUES” is my authentic and original work under the guidance of pro. Dr. P MUZAFIR
AHAMED. This study was under taken in partial fulfillment of the requirement for the award of
the degree of master of commerce, Calicut university.

I also declare that this project report has not been submitted to any other university or
institution for the award of other degree, diploma, similar title or recognition.

Place: Balussery ASHIK MK

Date : (RGARCM005)
 AKNOWLEDGEMENT

This study would not complete without acknowledging my sincere gratitude to all those who
helped me morally, socially in kind to bring out this project report successfully.

Firstly I wish to express my sincere thanks to God who showered blessing on me and provide me
with physical strength, confidence, courage, inspiration and interest through of the period of my
study.

I would like to express my sincere gratitude to prof. (Dr) P MUSAFER AHMED (Principle Sree
Gokulam Arts And Science college, Blussery) for providing me the necessary sanction required
for the study and the valuable guidance.

I am grandly thankful to Mrs. Ast. Prof. JISHA KV (Head of Department) for her valuable
advice and guidance.

I am thankful to all who have contributed directly or indirectly for the completion of this project. I
would also wish to thank my parents and friends those who helped me for the successful
completion of this project.

ASHIK MK
CHAPTER CONTENTS PAGE NO
NUMBER
1 INTRODUCTION
FACTORS THAT INFLUENCE INVESTMENT
DECISION
SCOPE OF THE STUDY
STATEMENT OF THE PROBLEM
OBJECTIEVES
NEED FOR THE STUDY
SIGNIFICANCE OF THE STUDY
2 RESERCH METHODOLOGY
RESEARCH DESIGN
DATA SOURCE
SAMPLING
PERIOD OF STUDY
HYPOTHESIS
STATSTICAL TOOLS
LIMITATIONS
3 RIVIEW OF LITERATURE
4 ANALYSIS AND INTERPRETATION
5 FINDINGS CONCLUSIONS AND
SUGGECTIONS
BIBILOGRAPHY & APPENDIX
QUESTIONAIRE
TABLE TITLE PAGE NO
NO
4.1 Classification on the basis of Gender
4.2 Classification on the basis of Age
4.3 Classification on the basis of Martial status
4.4 Classification on the basis of occupation
4.5 Classification on the basis of education qualification
4.6 Classification on the basis of family size
4.7 Classification on the basis of earning members
4.8 Classification on the basis of monthly income level
4.9 Awareness about the investment avanues
4.10 Classification on the basis of investment category
4.11 Factors influencing investment decision
4.12 Preference alternate investments
4.13 Source of interest about various investments
4.14 Objectives of investments
 CHAPTER 1

INTRODUCTION
 INTRODUCTION
Investment is saving money and engaging them with the expectation of earning profit in future.
Investment behavior of an investor depends on his/ her risk perception and risk attitude. As per
modern portfolio theory risk taking of an investor depends on his/her attitude. Perception is the first
step in decision making followed by considering various avenues, making choice out of them and
then taking action which is behavior of investor.

There are different motives for investment. The most prominent among all is to earn a return on
investment. However, selecting investments on the basis of return is not enough. The fact is that
most investors invest their funds in more than one security Suggest that there are other factors,
besides return and they must be considered. The investors not only like return but also dislike risk.

Financial requirement of an individual finds no boundaries. Every individual aims at maximizing

the flow of income from whatever source possible. The most interesting activity undertaken by an
individual to fulfill this objective is to undertake investing. It is a very interesting activity which
attracts people from all walks of life irrespective of their occupation, economic status, education
and family background.

Investment means employment of fund on assets with the aim of earning of income or capital
appreciation. The two main factors that influence investment decisions are time and risk.
Investment is the allocation of money to assets that are expected to yield some game over a period
of time. The main criteria for investment are the expected return, risk involved and liquidity of
investment and safety of funds invested.

The term ‘investing’ could be associated with the different activities, but the common target in
these activities is to ‘employ’ the money during the time period seeking to enhance the investor’s
wealth. Funds are invested come from assets already owned/ borrowed money and savings. By
foregoing consumption today and investing their savings, investors expect to enhance their future
consumption possibilities by increasing their wealth.

An individual who commits money to investment products with the expectation of financial return
is termed as an investor. Generally, the primary concern of an investor is to minimize risk while
maximizing return.
 FACTORS THAT INFLUENCE INVESTMENT
DECISIONS

Investors have various needs to cater to. This induces them to invest in various avenues which
comprises of different types of securities. While taking an investment decision the investors decide
about the following:

• The amount of money needed for investment.

• The times span during which the money will be needed.
• Assets that should be purchased.
• The proportion of the total money that should be reinvested in each particular assets.
• The frequency of portfolio evaluation.
• The most economical sources of obtaining the required sum of money.

Since the concept of portfolio has gained momentum in recent times, the investors have a wide
range of choice available with regards to what to invest in. Investment should be in combination of
securities. The choice will depend on whether the investor will depend on assured returns and
safety of funds or capital appreciation etc.

Increasing popularity of investment can be attributed to the following factors:

• Increase in working population, large family income and consequent higher savings.
• Provision of tax incentives in respect of investments in specified channels.
• Increase in tendency of people to hedge against inflation.
• Availability of large and attractive investment alternatives.
• Ability of investment to provide income and capital gains etc.
Before going to the details of various investment avenues available let’s see what is investment?
Investment is sacrificing the present value for some future benefits or return. It may be the
purchase of some assets or commodity in anticipation of future capital gain or purchase of any
security which promises to pay back with a rate of return on a future maturity date. All the things
were money is spend for generating future benefit are collectively called investment avenues.

Investment may be defined as “a commitment of funds maid in the expectation of some positive
rate of return.”

“An investment is a monetary asset purchased with the idea that the asset will provide income in
the future or appreciates its value and can be sold for a higher price.”

The basic features of investment are risk and return. Risk is the possibility of losing part of whole
of the amount invested. Return is the yield or benefit expected from an investment. There is a
positive relation between risk and return. That is as the return of an investment increases, risk of
the investment also increases.
SCOPE OF THE STUDY

The importance of understanding the savings and investment behavior is essential as it forms the
basis for the development of the economy. If the investment behavior among the people is good, it
is a good symptom for the development of both money and capital mark and also the economy. The
study aims to ascertain the preference of investment avenues, problems of, source of motivation
and level of awareness of among investors have been examined. Also some of the factors have
been compared with demographic factors to find out the relationship between them.

STATEMENT OF THE PROBLEM

Each and every person can be specifically differentiated n various parameters. Savings or
investment is acknowledged as powerful tools in the alleviation of poverty. Investing even a small
amount can produce considerable rewards over the long term period. But we need to make the
decision of how much to invest and where to invest. To choose wisely we need to know the
investment option thoroughly. But there will be confusion among the people for the selection of
best investment avenues and this is the major problem of the investors. While investing money the
investors are having a lack of awareness about the investment alternatives. When they take
investment decisions they have to pay more attention to safety, liquidity, return, risk, tax benefits
and so on in addition to investment options. The above factors will confuse the investor while
investing money. The investor should be careful in selecting the investment avenue.
OBJECTIVES

1. To examine the level of awareness of investors about various aspects regarding investment.
2. To ascertain the investment pattern and preference of investors.
3. To know the sources of motivation of investors.
4. To study the investment objective of investors.
NEED FOR THE STUDY

There is a fundamental shift in the savings and investment pattern from the traditional ways
to modern ways, as seen in the late 1980’s. This shift has paved the way for a new range of
investments to cater the needs and preference of different segments of investors. The
various financial institutions, money market also contribute some regular changes to attract
the investors to save in various assets still, the investment on physical are also playing its
own role. The saving potential, saving pattern, investment behavior among the investors are
drastically different in all ways. After globalization, all corporate are targeting the rural
market to concentrate on the untapped area and there is a hectic competition in the market.
Finance is not an exception to this for the balanced development on nation; it is highly
essential to analyze the investment behavior of investors. This is the main reason behind the
researcher for choosing the research topic as, ‘A Study on Investment Awareness and
Preference of Investors on selecting Investment Avenues in Kozhikode district’.
SIGNIFICANCE OF THE STUDY
This study attempts to focus on investment preferences on investors. The investor has fixed
flow of income and their investment patterns are also different. In connection with this,
research will try to find out investment preference of investors in Kozhikode district. It will
be helpful to understand the investment preference of investors and the study will also
throw a light on the awareness of the investment avenues available in Kerala. The research
paper will become the helping hand to research scholars as well as students for their future
studies in respective area.
 CHAPTER 2

RESEARCH METHODOLOGY
 RESEARCH METHODOLOGY

The validity of the research is based on the systematic method of data collection and analysis of the
data collected. The data is collected through primary data as well as secondary data. This study is
based on the data collected from individual investors in Kozhikode district. The sampling
technique followed in this study is Non- probability sampling; convenient sampling techniques are
used to select the respondent from the available data base. Accordingly the researcher has selected
60 respondents in the study area.

RESEACH DESIGN

The research design is the conceptual structure with which research is conducted. It constitutes the
blue print for the collection, measurement and analysis of data. As such the design includes an
outline of what the researcher will do from writing the objective and its implication to the final
analysis of data. Generally the design which minimizes bias and maximizes the reliability of the
data collected and analyzed is considered a good design.

DATA SOURCE

The data required for the study is primary in nature. Questionnaire method has been used for the
collection of data. In this regard, a structured questionnaire was prepared and administrated among
the sample respondents. The secondary data have also been obtained from the books and websites.
SAMPLING

Random sampling method, convenient sampling method have been followed to choose the
respondents from the investors in Kozhikode district. The size of sample determined to be 60.

PERIOD OF STUDY

The period study consists of 3 months i.e. March 2019 to May 2019.

HYPOTHESIS

1. H1: There is significant relationship between education qualification and awareness of the
investors.
2. H0: There is no significant relationship between the income level and awareness of the
investors.
STATISTICAL TOOLS

There are various statistical tools which are used in analyzing data. The following tools are used for
representing and analyzing data.

Data representation:

• Table
• Percentage

The data analyzed by using under mentioned technique:

• Chi-square test

LIMITATIONS

• The present study is limited to Calicut district

• The time factor is another constraint. The project was completed with in short span of time.
• The study is mainly based on the primary data collected from 60 respondents in Kozhikode
district.
• The data has been collected from Kozhikode district and therefore the conclusions drawn
may not be applicable to other places.
• Few respondents are not willing to express their opinion and views on their investment and
have expressed common view on investment practice.
 CHAPTER 3

REVIEW OF LITERATURE
 REVIEW OF LITRATURE

S. Umamaheshwari, M. Ashok Kumar (2014) Awareness, environment level of exposure intensions,

beliefs, responsibilities are the factors responsible for deciding investment policies. Behavioural pattern
helps in preparing various schemes for investments. Investment temperament of salaried strata based on
investment awareness and expected rate of investment return.

N. Dharani , et. al. (2014) Investment attracts all people irrespective of their occupation , education and
social status. Women also involve in investment activities. Women’s below age of 30 are involve in
investment activities. Women’s with graduation are involve in more investment activities. women’s with
income of 50001 to 100000 are involve in investment activities.

Bhawana Bhardwaj, et. al. (2013) National output is increase for future by investment. Investment
dependents upon awareness about investment opportunity, level of knowledge, evaluation of investment
opportunities and selection of investment options. Research states that maximum respondents have selected
as Bank deposits and Provident fund as investment avenue. Investors preferred stability in return of
investment.

S. Umambheswari, M. Ashok Kumar (2013)When one know the existence of a new thing is known as
awareness. External sources are responsible for creating, modifying and shaping investment decision of
investors. Television, Radio, Print media, personal consultation for expert, relatives, friends etc are
responsible for decision investment decision.

R. Sreepriya, P. Gurusamy (2013) Additional income or growth in value can be achieved by investment.
Waiting for rewards is the main characteristic of investment. Investment is allocation monetary resources
to get returns over given period. Surplus funds are invested with different channels by salaried class
people. This research analyses the different investment avenues. 81 percent respondents faced problem at
the time of investment.

L. Pandiyan, T. Aranganathan. (2012) Decision making process on savings and investment is affected
by the attitude of the respondent. Study analyses shows that level of attitude of male and female, female
group are not interested in investment but more wrong investment decisions are
made by male group. Respondent of 520 years of age are neutral opinion on investment. Investment
pattern is affected by the family size too.

S. Umamaheshwari, M. Ashok Kumar (2014)This study is to find the relationship between

Demographic and social factors that affects the invest decision of respondent like investment attitude,
investment awareness and return on investment. This study analyses the priorities of salary classed people
regarding investments. Different factors that affect the decision of respondents such as age, gender, Income
scale, marital status etc.

Varsha Virani (2013) Investment plans are important to meet consequences in future, to meet financial
goals. Economic development is boosted with the help of investments. Investment in Bank helps in
circulation of funds for nations development. Financial independence, increase in wealth, and personal
goals can be achieved through investments. Investment avenues are divided into high risk and low risk
instruments.

V. R. Palanivelu, K. Chandrakumar (2013) This study divides the investment in different categories like
Equity with high rate of return and risk , Debts with fixed interest rate on investments, Fixed deposits with
bank , insurance , public provident fund low rate of return on investment and secured. Data analyses
reveals that 40percent respondents like to invest in insurance, 30 percent respondents like to invest in bank
deposits, 18 percent like to invest in Gold and real estate.

J. Sidharthul Munthaga, M. Nazer (2013) Employment of funds with intension of getting returns on it is
called as investment. Study examines the impact of factors on investment behavior of people, and to
understand the attitude of investors towards various investment options. Data analyses reveals that 56
percent private employees, 30 percent Self employed and

14 percent public sector employees adopted professional services for investment. Graduate respondents are
more attentive towards investments.

Naila Iqbal (2013)The study examines the how a product or service has become entrenched with a given
consumer market. Penetration is checked with the amount of sales that is generated in market. Product
generating 20 percent of sales within given market would said to have higher rate of market penetration.
Mutual fund industry is known as Urban industry. Mutual funds are considered to be less risk and more
profit.
Juwairiya P. P. (2014) An economical activity which fascinate people from all walks of life is called as
investment. Investors face problem in choosing investment avenue from various options. Systematic
investment plan is a tool to create a wealth by investing small amount of money every month over a period
of time. Systematic investment plan is easy.

B. N. Panda, J. K. Panda (2012) The study analyses the difference in perception of investors in decision
of investing on the basis of age and gender. Various investment options are examined in these research
such as Secured deposits, Life insurance policies, Provident fund , Pension schemes, Bonds, Debentures,
Equity shares, Mutual funds, Real estate, postal schemes etc. investment decisions are to be taken by self
and has to wait to see the results of it, which fascinates some investors.

N. Srividhya, S. Visalakshi (2013)The study analyses various avenues of investment such as Government
deposits, bonds, real estates, post office saving certificates life insurance policies, mutual funds etc. study
covers Government colleges, Private colleges and aided colleges which states that maximum teachers
saves below one lakh. Maximum respondents invest in fixed deposits.

Odoemenem, et. al. (2013) Investment is laying money now for return in future. Study reveals that policy
makers does not make comprehensive and adequate saving schemes for rural area. Which leads to
inadequate savings and Investments by small scale farmers. The study analyses socio-economical status of
the respondents. Purpose of saving is to take care of families and not to invest.

S. Prasanna Kumar (2014) Investment and savings are two different things. Investment means
saving with a hop that some benefit will arise in future. Investment options are available like
Bank deposits , NRO funds, Real Estate, Shares and Bonds etc. Respondent of the study reveals
that majority of respondents selected deposit as a mode of investment..
UjwalaBairagi, CharuRastogi (2013) The study states the Household investors preferred investments in
Bank Deposits. Household investments are the major determinant of gross domestic savings. Majority
respondents selected the option of Bank deposits and Insurance policies. Study analyses the awareness
about investment avenues which state that respondent between the age of 41 to 50 years are more aware
about investment options.
Kaushal Bhatt (2013)Utilization of resources in order to increase income or production output in future is
kwon as investment. Data analyses states that Graduates are more intended to save money and they are
aware about various investment avenues. Businessmantend to invest more as compared to salaried man.
Respondent want more safety and securities to their money.

Rajeshwari Jain (2014) Investment is the consumption and saving opportunity in future expressed in
monetary terms. Two classes of investments like Fixed income statements i.e. Preference shares , Bonds,
fixed deposits and Variable income investment i.e. equality capital, proprietary ownership. Data shows that
respondents between the age group of 26 years to 35 years are involve in investment activities.

Unmekha Tare, Vishal Mehta (2012) The study analyze that the large number of investment outlets are
available to investor. By analyzing advantages and disadvantages of investment avenues investor can select
appropriate investment plan for self. Data examination states that 32 percent investors selected LIC / NSS,
31 percent investors had selected Fixed deposits, 9 percent investors selected Mutual funds 6 percent
investors opt for Chits and Jewellary etc. Investment management is a Science as well as an Art.

Ravi Vyas (2012)This study finds the form of investments preferred by investors. Mutual fund investment
is a secured investment with good returns on investments. Data analyses shows that maximum respondent
invest in Gold followed by bank deposits and Insurance schemes. Mutual fund investments are very
limited. For Safety, Liquidity, Reliability, Tax benefits and high returns Mutual fund has average score
among investors.

Gauri Prabhu, N. M. Vechalekar (2013) Mutual funds is a platform to participate in the Indian capital
market. Money collected is invested in shares, debentures and other securities. This study examines the
awareness about the mutual fund among investors. Data analyses states that respondents between age
group 19 years to 35 years intended to invest more. Private sector employees invest more.

Priyanka Jain (2012) The study analyses the various investment avenues available for the investors. It
state Equity shares has low return but high capital appreciation, risk liquidity, Marketability, tax benefit,
Debentures has high return but low risk liquidity and marketability. Bank deposits have moderate returns
but low capital appreciation and risk liquidity.
Gaurav Chhabra, Ankesh Mundra (2014)The study state various invest options available with the
investors. In earlier time because of non availability of banking system investors use to keep hard cash,
gold and silver ornament , precious stones etc as savings. Now investment are made through bank,
insurance policies, mutual funds , pension funds, collective investment schemes, investment clubs.

T. N. Murty, P. V. S. H Sastry (2014)Investors choice with the objective of return optimization

is investment in the stock market instruments or securities. Stock market securities are affected
by various internal and external factors. Study examines the perception of small investment
investors towards returns on investment.
A. N. Paunikar (2014) Equity Linked Saving Schemes are similar to equity diversification schemes with
tax saving benefit under section 80C. The study aims at understanding scheme- wise benefits under Equity
Linked Saving Schemes for tax saving. Data analysis shows that Equity Linked Saving Schemes has better
returns on investments.

Tuan-Hock Ng, et. al. (2011) This paper examines the influence of demographic and investment
experience on retirement planning intension. Data analyses reveals that investors at age of 20 to 29 are
more concern about investment for retirement. Singles invest more in EPF for retirement over the married
people.

Simran Saini, et. al. (2011)In past few years Indian mutual fund has gained lot of popularity. The
diversified risk and diversified investment structure of mutual fund contributed in growth of mutual funds.
This study analyses the growth of mutual fund industry in India. Data analyses states that tax benefit is the
main factor followed by high returns for investing in mutual fund.

Yogesh P. Patel, Charul Patel (2012)This study is to examine the behavioural pattern of investments and
various investment alternatives among salaried people working in private sector. Data analyses states that
majorities of Male respondents are intended to invest more. Maximum investment in range between 1 lakh
to 2 lakhs.

Manoj Kumar (2013) Employment of funds on assets with the aim of earning income or capital
appreciation is called as investment. The investor with excess cash can invest in securities like real estate,
gold, bank deposits etc. The study is to understand the preference of investors
towards other investment alternatives and to know the preference towards investment between shares and
mutual funds.

A. Ananth (2013)This study analyses the investors attitude towards various forms of investment.
Investments are classified as marketable and Non marketable, High risk and low risk investments. Share
market is high risk investment with high returns, Commodity market has no risk. Mutual funds are risk
investment with good returns.

Sanjay Kanti Das (2012) A tool that allows the small investors to access a well diversified portfolio of
bonds, equities and other securities is known as Mutual Fund. Most Suitable investment avenue for common
man is mutual fund as it provides opportunity to invest in diversified, professionally managed securities at
low cost.

N. Geetha, M. Ramesh (2011) This study Examines the factors responsible for investment behaviour of
people and different investment options available. Equity are high risk and high return investment with
liquidity, debts are low risk and fixed return instruments, Mutual funds and bonds are low risk with normal
returns instruments, Company deposits and bank deposits has low risk and low returns, post office savings ,
PPF and insurance policies are no risk investment with low returns, Real estate and Gold has no returns on
investment but has capital appreciation.

Avinsah N (2014)The study analyses the investment behaviour by examining various invest avenues. Data
analyses reveals that Most of the respondents have selected bank deposit as their first option for investment
followed by real estate. Below 30 years respondents invest more in real estate whereas above 60 years
preferred LIC policies. Full time salaried people are more aware about different investment avenues.

Heena Kothari (2012), The study analyses the investment behaviour towards investment avenues in Indore
city. The study is consisting of private and public banking employees as they have regular income,
retirement benefits, safety and security of income. Analyses of data states that Younger people invest more
than Middle age people.
Ashly Lynn Joseph, M. Prakash (2014) Buying of financial product or any valued item with
anticipation of positive returns will received in the future is called as investment. Study analyses the
different investment options such as Bonds, Cash, Real Estate etc.

J. Paul Sundar Kirubakaran (2013) The Study analyses the behaviour of an investor. This study
brings out the relationship between risk of investment and protection of investment. Nearly

59 percent respondents stick to the protection of investment rather risk for good returns. Respondents
have protecting investment as a main priority.

Samreen Lodhi, (2014) The study determines the influence of financial literacy, accounting
information, openness to experience on decision making of investors. Investors are categorized as Risk
taker or Risk Averter. Risk taking, preference investment in shares (risky investment), risk aversion,
information asymmetry and shares investment.

Smita Mazumdar (2014) Individuals invest rationally with intention of maximizing utility for given
level of risk. This study examines the relationship between investment behaviour and level of
knowledge. Financial knowledge leads to investing in different investment avenues such as equity, gold,
real estate, fixed deposits etc. study examines the aggressive investors, averse investors and moderate
risk taker with the help of financial knowledge.

M. Nandhini, D. Sivasakth (2013) Mutual Fund is the most likely investment for the common man as it
provides an opportunity to invest in a diversified, professionally managed securities at a relatively low
cost. Main objective of investment is wealth accumulation for investor according to these study. Mutual
funds provides moderate rate of returns on investment with minimum risk.
 CHAPTER 4

ANALYSIS AND INTERPRETATION

 Table 3.1 Classification on the basis of Gender

Sl. No. Gender No. of Respondents Percentage

1 Male 22 36.67

2 Female 38 63.33

Total 60 100

Source: Primary Data

Gender
PERCENTAGE

63.33

36.67

male
female

INTERPRETATION

From the above table it shows that out of 60 sample investors, 36.67% is male and 63.33% is
female.
 Table 3.2 Classification on the basis of Age

Sl. No. Age No. of Respondents Percentage

1 Up to 30 18 30
2 31-40 20 33.33
3 41-50 10 16.67
4 Above 50 12 20
Total 60 100
Source: Primary Data

AGE
PERCENTAGE

30 33.33

16.67 20

Up to 30
31-40
41-50
Above 50

INTERPRETATION

From the above table it is found that18 investors 30% belong to the age group of up to 30 years.
Hence, it can be inferred that the younger generation’s think of investment in their early phase of
employment. Investors in the age group of 31-40 years are 20 in number constituting 33.33%.
Investors in the age group of 41-50 years are 10 in number constituting 16.67%. Investors in the
age group of above 50 years are 12 in number constituting 20%.

Table 3.3 Classification on the basis of Marital Status

Sl. No. Marital Status No. of Respondents Percentage
1 Married 40 66.67
2 Unmarried 20 33.33
Total 60 100
Source: Primary Data

MARITAL STATUS
PERCENTAGE

66.67

33.33

Married
Unmarried

INTERPRETATION

From the above table it shows that 66.67% of the respondents are married and the rest of them
are unmarried (33.33%).
 Table 3.4 Classification on the basis of Occupation

Sl. No. Occupation No. of Respondents Percentage

1 Govt./Pvt. 38 63.33
2 Others 22 36.67
Total 60 100
Source: Primary Data

OCCUPATION
PERCENTAGE

63.33

36.67

Govt./Pvt.
Others

From the above table it is found that 38 respondents are working in public or private sector and
rest 22 respondents are working in other sector.
 Table 3.5 Classification on the basis of Education Qualification

Sl. No. Education Qualification No. of Respondents Percentage

1 SSLC 10 16.67
2 HSC 14 23.33
3 Graduate 18 30
4 Post Graduate 12 20
5 Others 6 10
Total 60 100
Source: Primary Data

EDUCATION QUALIFICATION
PERCENTAGE

30
23.33
16.67 20

10

SSLC
HSC
Graduate
PG
Others
1

INTERPRETATION

The above table depicts that among the respondents, 10 respondents (16.67%) are with a high
school or matriculation level, 14 respondents (23.33%) with higher secondary, 18 respondents
(30%) were graduates, and where as the majority of the investors are graduates. Post graduates
constituting 20% and 6 respondents (10%) belong to other categories.
 Table 3.6 Classification on the basis of Family size

Sl. No. Members No. of Respondents Percentage

1 Less than 4 15 25
2 4-6 41 68.33
3 Above 6 4 6.67
Total 60 100
Source: Primary Data

FAMILY SIZE
PERCENTAGE

68.33

25

6.67

Less than 4
4to6
above 6

INTERPRETATION

The table shows that among the 60 respondents, 15 respondents (25%) are have family less than
4 members. 41 respondents (68%) are have a family of 4 to 6 members and only 4 respondents
(6.67%) are from a family of above 6 members.
 Table 3.7 Classification on the basis of No. of Earning Members

Sl. No. No. of Earning Members No. of Respondents Percentage

1 1 15 25
2 2 20 33.33
3 3 and above 25 41.67
Total 60 100

EARNING MEMBERS
PERCENTAGE

41.67
33.33
25

1
2
3 & above

INTERPRETATION

From the above table it is clear that among the 60 respondents, 25 respondents have 3 or more
earning members in the family; 25% are having only 1 earning member in the family. Rest has 2
earning members.
 Table 3.8 Classification on the basis of Income Level

Sl. No. Income level NO. of Respondents Percentage

1 Up to 10000 13 21.67
2 10001-20000 15 25
3 20001-30000 20 33.33
4 Above 30000 12 20
Total 60 100
Source: Primary Data

INCOME LEVEL
PERCENTAGE

33.33
21.67 25

20

Up to 10000
10001-20000
20001-30000
Above 30000

INTERPRETATION

From the above table it is clear that out of 60 respondents 48 respondents (80%) have an income
level below 30000. And 20% i.e. 12 respondents are coming under the income level above
30000.
 Table 3.9 Awareness about the Investment Avenue

Sl. No. Awareness about the No. of Respondents Percentage

Investment Avenue
1 Yes 37 61.67
2 No 23 38.33
Total 60 100
Data source: primary data

AWARENESS ON INVESTMENT AVENUES

PERCENTAGE

61.67

38.33

Yes
NO

INTERPRETATION

From the above table we can know that out of 60 respondents 61.67% have the knowledge on
various investment avenues and the remaining 38.33% of them have no knowledge about various
investment alternatives. Above table indicates that most of the respondents know about the
various investment avenues of the investments.
 Table 3.10 Classification on the basis of Investment Category

Sl. No. Category of investment No. of Respondents Percentage

1 Long term 14 23.33
2 Short Term(up to 1 year) 24 40
3 Medium 22 36.67
Total 60 100
Source: Primary Data

INVESTMENT CATEGORY
Percentage

40
36.67
23.33

Long term
Short term
Medium

INTERPRETATION

The above table depicts that 76.67% of respondents are choosing investment category of short
and medium term and 14 respondents, (23.33%) are choosing long term.
 Table 3.11 Factors influencing investment decisions

Sl. No. Factors Influencing No. of Respondents Percentage

1 Return 26 43.33
2 Risk 30 50
3 Time period 4 6.67
Total 60 100
Source: Primary Data

FACTORS INFLUENCING
Percentage

50
43.33

6.67

Return
Risk
Time period

INTERPRETATION

The table shows that 50% of the respondents are considering risk as the main factor influencing
investment decision, 43.33% are considering return. Only 4 respondents i.e. 6.67% are
considering time period for investment decision.
 Table 3.12 Preference of Alternative investments

Sl. No. Options No. of Respondents Percentage

1 Bank Deposits 15 25
2 Post Office Savings 10 16.67
3 Gold 18 30
4 Insurance 9 15
5 Real estate 3 5
6 Stock Market 3 5
7 Others 2 3.33
Total 60 100
Source: Primary Data

PREFERENCE OF INVESTMENT
Bank Deposits Post Office Savings Gold Insurance
Real estate Stock Market Others

5% 3% 0%
5%
25%
15%

17%

30%
INTERPRETATION

The above table shows that out of 60 respondents 30% of investors prefer to invest their money
in gold, 25% of the investors invest their money in bank deposits, 16.67% of the investors invest
their money in postal deposits, 15% of investors invest their money in insurance, 5% of the
investors invest their money in real estate and stock market remaining 3.3% of the investor 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.
Table3.13 Sources of Information about Various Investments

Sl. No. Sources NO. of Respondents Percentage

1 Self opinion 5 8.33
2 Family members/Relatives 10 16.67
3 Friends & Colleagues 13 21.67
4 Consultant/Agent 6 10
5 Advertisements 10 16.67
6 Books/ Magazines 7 11.66
7 Internet 9 15
Total 60 100
Source: Primary Data

SOURCES
Self Opinion Family members/Relatives Friends & Colleagues
Consultant/Agent Advertisment Books/ Magazines
Internet

15% 8%
17%
11%

17% 22%
10%
INTERPRETATION

Among the different sources of investment information 21.67% of the respondents get
information through friends and colleagues. Family members and Advertisement are getting
second place, Internet are getting third place followed by others. Hence, it is clear that most of
the investor depends on friends & colleagues for investment information.
 Table 3.14 Objectives of investment

Sl. No. Purpose of Investment No. of Respondents Percentage

Education of children 16 26.67
2 Marriage of children 10 16.67
3 Security/ Safety 15 25
4 Capital appreciation 11 18.33
5 Contingencies 8 13.33
Total 60 100
Source: Primary Data

OBJECTIVES OF INVESTMENT
Education of children Marriage of children Security/ Sfety
Capital appriciation Contigencies

0%
13%
27%

18%

17%
25%

INTERPRATION

The objectives of investment vary from one to another. Most of the investors invest their saving
for the objective of education of children followed by 15 respondents preferred safety/
security.18.33 % of respondents selected capital appreciation as their investment objectives.
Contingencies have the lowest priority among the investment objectives. Hence education of
children and safety are the prime motive of investment.
 TESTING HYPOTHESIS
1. H1: “There is significant relationship between education and awareness of the investors.”

To test the hypothesis the researcher used the ‘chi- square test.’

OBSERVED FREQUENCY

Education Awareness Not awareness Total

SSLC 6 4 10
HSC 9 5 14
Graduate 11 7 18
Post Graduate 9 3 12
Others 2 4 6
Total 37 23 60
Source: Primary Data

CHI- SQUARE TEST

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

6 6.16 -(0.16) 0.0256 0.0042
4 3.83 0.17 0.0289 0.0075
9 8.63 0.37 0.1369 0.0158
5 5.36 -(0.36) 0.1296 0.0241
11 11.10 -(0.10) 0.0100 0.0009
7 6.90 0.10 0.100 0.0014
9 7.40 1.60 2.5600 0.3459
3 4.60 -(1.60) 2.5600 0.5565
2 3.70 -(1.70) 2.8900 0.7810
4 2.30 1.70 2.8900 1.2565
Total 2.9938
Degree of freedom= (r-1) (c-1), V= (5-1) (2-1) = 4

4 degree of freedom 5% level of significance is 9.488. The calculated value (2.99) is less than
table value. So, hypothesis is accepted. Hence it is concluded that, “There is significant
relationship between education qualification and awareness of the investors.”

2. H0: “There is no significant relationship between income level and awareness of the
investors.”

OBSERVED FREQUENCY

Income level Awareness Not awareness Total

Up to 10000 6 7 13
10001-20000 10 5 15
20001-30000 12 8 20
Above 30000 9 3 12
Total 37 23 60

CHI- SQUARE TEST

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

6 8.01 -(2.01) 4.04 0.50
7 4.98 2.02 4.08 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
Degree of freedom= (r-1) (c-1), V= (4-1) (2-1) = 3

3degree of freedom at 5% level of significance is 7.815. The calculated value (2.38) is less than
table value. So hypothesis is accepted. Hence it is concluded that, “There is no significant
relationship between income level and awareness of the investors.”
 CHAPTER 5

FINDIGS, CONCLUSION & SUGGESSIONS

 FINDINGS

• In the study the researcher has investigated 60 respondents. Out of them 61.67% of
respondents are aware about the investment avenues whereas 38.33% are unaware.
• Most of the respondents are in the age group between 31 to 40 years.
• Among the sample investors, majority (30%) of the respondents are educated up to
graduation level.
• The study reveals that most of the investors belong to married category.
• It is understood that most of the investors have monthly income of Rs. 20001 to Rs.
30000.
• Most of the investors have made their investment in Gold and followed by bank deposits
in the study area.
• The study found that there is a relationship between education qualification and
awareness of investors. And there is no relationship between income level and awareness
of investors.
• Education of children and safety are the prime objectives of investment.
• Most of the investors depend on friends & colleagues for investment information.
• The study reveals that investors do not invest money in their own opinion.
 CONCLUSION
This report is a reflection of the behaviors of various categories of investors. Selection of a
perfect investment avenue is a difficult task to any investor. An effort is made to identify the
preference of sample of investors selected from large population. Despite much limitation to the
study, researcher was successful in identifying some investment patterns, there is some
commonness in these investors and many of them responded positively to the study. This report
concentrated in identifying the awareness and preference of investors towards various investment
avenues. So from the research it is clear that money places a vital role in every individual’s life.
The investors have started recognizing the importance of investments. From the study researcher
comes to know about how much investors are aware about investment knowledge. Both male
and female are investing net savings for the purpose of education of children, safety etc. Their
most preferred avenues are all traditional investments like gold, bank deposit etc. The reason
behind selecting this avenue is safety and security of their principle amount plus the assured
income. The investors feel that traditional investments are more trusted and tested avenues.
Therefore stock market options are still untouched by many of them.
 SUGGESSIONS
1. It is found that huge investment potential of the community is still lying untapped. Hence,
there must be a planned program to tap it.
2. By understanding factor influencing investment decisions of these respondents and
various other aspects of investment, financial service providers can decide a suitable plan
for these investors.
3. Even though there are various investment outlets available, majority of investors only
prefer gold and bank deposits. So, wide publicity must be given regarding the other
avenues of investments like stock market, commodity market etc.
4. People, in general, should be more educated by the government and financial institutions
about different investment avenues.
BIBLIOGRAPHY & APPENDIX
 BIBLIOGRAPHY

WEBSITES:

https://www.novapdf.com

https://granthalayah.com

https://shodganga.inflibnet.com

https://www.scripd.com

www.investorwords.com

Wikipedia, the free encyclopedia

BOOKS:

Research Methodology

Quantitative Techniques for Business Decision- L. R. Potty

 QUESTIONNAIRE
Dear sir/madam,

As a part of my Post Graduation project work ‘A Study on Awareness and

Preference of Investors on selecting Investment Avenues.’ I am conducting an interview among
a population of 60 samples. So, I kindly request you to spend some of your valuable time for
filling up the questionnaire for me.

1. Name :
2. Gender : Male Female
3. Marital status: Married Unmarried
4. Age Category:
Up to 3 years 31-40years 41-50 years above 50
5. Occupation: Govt. /Pvt. Other
6. Education Qualification:
SSLC HSC Graduate Post Graduate Others
7. No. of members in the family:
Less than 4 4-6 above 6
8. No. of earning members in the family:
1 2 3& above
9. Monthly Income level of the family:
Up to Rs.10000 Rs.10001-20000 Rs.20001-30000 above Rs.30000
10. Are you aware of various investment avenues: Yes No
11. Category of investment:
Long term Medium term Short term
12. State the main factors influencing investment:
Risk Return Time period
13. State the preference of investment from the following investment options:

Sl. Options Tick

No.
1 Bank Deposit
2 Post office savings

3 Gold
4 Insurance
5 Real estate

6 Stock Market
7 Others

14. Choose the most reliable source of investment information:

 Sl. Sources Tick
No.
1 Self opinion
2 Family members/ Relatives
3 Friends & Colleagues

4 Consultant/Agent
5 Advertisements
6 Books/Magazines

7 Internet

15. Select one of the important objective of investment from the following:

Sl. Investment Objectives Tick

No.
1 Education of children

2 Marriage of children

3 Security/ Safety

4 Capital Appreciation

5 Contingencies
THANK YOU FOR YOUR KIND COOPERATION.