Documente Academic
Documente Profesional
Documente Cultură
ON
SUBMMITED TO
Mr. Arpit
SUBMMITED BY :Bittu
ROLL NO. 3076502
DECLARATION
I, Bittu, Roll No. 3076502 , student of BBA FINAL YEAR Shivam
Technical Campus Khurja BSR here by declare that the research report
entitled INVESTING BEHAVIOR REGARDING THE INVESTORS is my
original work and the same has not been submitted to any other
University for the award of any other degree or diploma.
Place: Khurja
Date: ..
(BITTU)
TABLE OF CONTENTS
CONTENTS
1 Introduction
What is Investment
Features of An Investment Programme
Investing Behavior
Equity Share
Bond
Insurance
Mutual Fund
2 Objective of the project
3 Importance of the study
4 Scope of the study
5 Research Methodology
6 Data Analysis & Interpretation
7 Reccommendation & Suggestion
8 Conclusion
INVESTMENT
Investment is the sacrifice of certain present value for the uncertain future
reward. It entails arriving at numerous decisions such as type, mix, amount,
timing, grade etc. of investment and disinvestment. Further, such decisionmaking has not only to be continuous but rational too. Broadly speaking,
and investment decision is a trade off between risk and returns. All
investment choices are made at points of time in accordance with the
personal investment ends and a contemplation of an uncertain future. Since
investments in securities are revocable investment ends are transient and
investment environment is fluid, the reliable bases for reasoned
expectations become more and more vague as once conceives of the
distance future. Investors in securities will, therefore, form time to time,
reappraise and re-evaluate their various investment commitments in the
light of new information, changed expectations and ends.
Investment/Speculation/Gambling:
People usually make investments with a future end date in mind. The
length of time from the date when investment is purchased to the final
date can be called the investors planning horizon, investment
horizon, or holding period. A financial asset purchased with a very
short holding period in mind probably is not really an investment- it
may be simply a gamble or a speculation.
A gamble is usually a very short- term investment in a game of
chance. The holding period for most gambles can be measured in
seconds. That is, the result of so called investment are quickly
resolved by the roll of the dice or the turn of a card. Such activities
have planning horizons that are far too brief to do the research that
should precede any investment activity.
Speculation is typically last longer than gambles but are briefer than
investment. A speculation usually involves the purchase of a salable
asset in hopes of making a quick profit from an increase in the price
of the asset, which expected to occur within a few weeks or months.
Those involved in speculations are reluctant to refer to this activity as
speculation because they dislike the connotations of the word; the
prefer to refer to speculations as investment activities.
which
securities
are
investment
and
which
are
speculations.
Safety of Principal
Capital Growth
Concealability
Investing has been an activity confined to the rich and business class in the
past. This can be attributed to the fact that availability of investible funds is
a pre-requisite to deployment of funds. But, today, we find that investment
has become a household word and is very popular with people form all
walks of life.
EQUITY SHARES
The potential for profit is greater in equity share than in any other
investment security. Current dividend yield may be low but potential of
capital gain is great. The total yield or yields to maturity may be substantial
over a period of time.
2
Limited Liability
The equity share is a good hedge against inflation though it does not fully
compensate for the declining purchasing power as it is subject to the
money-rate risk. But, when interest rates are high shares tend to be less
attractive, and prices tend to depress.
4. Free Transferability
The owner of shares has the right to transfer his interest to someone
elese.The buyer should ensure that the issuing corporation transfers the
ownership on its books so that dividends, voting right and other privileges
will accrue to the new owner. Although the individual has the right to sell his
shares, there is little or no trading in the shares of many corporations due to
the lack of interested buyers. For this reason, equity shares of many small
businesses are nonliquid and difficult to market.
5. Share in Growth
6. Tax Advantages
Equity shares also offer tax advantages to the investor. The larger yield on
equity shares results from an increase in principal or capital gains which are
taxed at lower rate than other incomes in most of the countries.
BOND
Types of Bonds:
1 Convertible Bonds
1 Fixed rate Bonds
1 Floating-rate bonds
1 High-yield bonds
1 Zero-coupon bonds
1 Subordinated
INSURANCE
Types of Insurance
1
Life insurance
General Insurance
Life insurance provides financial protection to your family against risks and
unfortunate events.
Life insurance provides for your family exactly when they need it most.
Life insurance ensures that even if you are not around to save, your goals and
aspirations are met.
MUTUAL FUND
The origin of mutual fund industry in India is with the introduction of the
concept of mutual fund by UTI in the year 1963. Though the growth was
slow, but it accelerated from the year 1987 when non-UTI players
entered the industry.
In the past decade, Indian mutual fund industry had seen dramatic
improvements, both quality wise as well as quantity wise. Before, the
monopoly of the market had seen an ending phase; the Assets under
Management (AUM) were Rs. 67bn. The private sector entry to the fund
family raised the AUM to Rs. 470 bn in March 1993 and till April 2004; it
reached the height of 1,540 bn.
Putting the AUM of the Indian Mutual Funds Industry into comparison,
the total of it is less than the deposits of SBI alone, constitute less than
The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB
and LIC. It is registered with SEBI and functions under the Mutual Fund
Regulations. With the bifurcation of the erstwhile UTI which had in March
2000 more than Rs.76,000 crores of AUM and with the setting up of a
UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and
with recent mergers taking place among different private sector funds,
the mutual fund industry has entered its current phase of consolidation
and growth.
OBJECTIVE
OF
THE PROJECT
OBJECTIVE
(1) To find out whether people like to invest in mutual fund or not. If not then
what is the reason for that.
(2) To find out whether people like to invest in shares or not. If not then what
is the reason for that.
(3) To find out the preferred option for investment on the basis of income
group and what they like first before investment.
Importance of
the study
Liquid fund
The Liquid fund invests 100% in bank deposits and high quality shortterm market instru ments. The fund is designed to be cash secure and
has a very low level of risk; however unit prices may occasionally go
down due to the use of short-term money market instruments. At
inception, investments up to 20% can be allocated to this fund.
Secure Managed
The Secure Managed fund invests 100% in Government Securities and
Bonds issued by companies or other bodies with a high credit standing,
however a small amount of working capital may be invested in cash to
facilitate the day-to-day running of the fund. This fund has a low level of
risk but unit prices may still go up or down.
Defensive Managed
15% to 30% of the Defensive Managed fund will be invested in high
quality Indian equities. The remainder will be invested in Government
Securities and Bonds issued by companies or other bodies with a high
credit standing. In addition, a small amount of working capital may be
invested in cash to facilitate the day-to-day running of the fund. The fund
has a moderate level of risk with the opportunity to earn higher returns in
the long term from some equity investment. Unit prices may go up or
down.
Balanced Managed
30% to 60% of the Balanced Managed fund will be invested in high
quality Indian equities. The remainder will be invested in Government
Scope of study
The study has been carried out in Noida selecting a sample of 100 people
(Shopkeepers). The aim of the study was to analyse Peoples perception
regarding different investment instruments e.g. Mutual Fund, Equity Shares
etc. An attempt was made to understand the Investment behaviour with the
help of Investors as well as Firm. This can be done at rural area also.
sometime it also gives idea about a new business which becomes much
more profitable for the researches then the older one.
Scope of the study could give the projected scenario for a new
successful strategy with a proper implementation plan. Whatever scope I
observed in my project are not exactly having all the features of the
scope which I described above but also not lacking all the features.
and
current
high standards
for asset
quality
through
financial sector.
and
address
Research
Methodology
RESEARCH PROCESS
DATA ANALYSIS
&
INTERPRETATION
Table-1
Purpose of investment
SECURITY
RETURN
TAX BENEFIT
60%
30%
10%
GRAPH 1
TAX
BENEFIT
10%
RETURN
30%
SECURITY
60%
SECURITY
RETURN
TAX BENEFIT
Interpretation:
The above table and graph shows that the security is the main purpose of
the different investors.
1 60% people make investment for the purpose of security,
2 30% people like to invest for high return
3 Only 10% people want tax benefit.
Table-2
Most Preferred option for investment
BANK FDs
48%
PPF/NSC
BONDS
INSURANCE
MUTUAL FUND
SHARES
8%
5%
30%
4%
5%
GRAPH 2
48%
30%
5%
4%
5%
BO
ND
IN
S
SU
R
AN
M
C
UT
E
UA
L
FU
ND
SH
AR
ES
PP
F/
BA
NK
NS
C
8%
FD
s
60%
50%
40%
30%
20%
10%
0%
Interpretation:
The above table and graph is presenting the preferred option of different investors.
This table and graph shows as:
Table-3
Various Plan under insurance
TERM PLAN
ENDOWMENT PLAN
MONEY BACK PLAN
PENSION PLAN
MEDICLAIM PLAN
23%
25%
35%
7%
10%
GRAPH 3
10%
TERM PLAN
23%
7%
35%
ENDOWMENT
PLAN
MONEY BACK
PLAN
PENSION PLAN
25%
MEDICLAIM PLAN
Interpretation:
The above table and graph indicates the various plan under insurance. This
table indicates that most of the people have invested in Term Plan,
Endowment Plan and Money Back Plan.
1 Near about 85% people have invested their money in these three
plans.
2 In Table-1 we find out that 50% people wants security of their money
and insurance is a very-very preferred option for investments.
Table - 4
Guidance Preference
INVESTMENT CONSULTANT
30%
BANK
AGENTS
45%
25%
GRAPH 4
25%
30%
INVESTMENT
CONSULTANT
BANK
AGENTS
45%
Interpretation:
The above table is showing the preferred option for guidance of the
different investors. This is clear from the table and graph that:
1 30% people prefer the guidance of the investment consultant.
2 45% people prefer banks as guider
3 25% people think agents as their best guider
The reason being that the different persons have their own mind setup.
Table-5
20%
31%
25%
16%
8%
GRAPH 5
8%
20%
16%
LACK OF
KNOWLEDGE
RISKY
NOT INTERESTED
NO FUND & TIME
25%
31%
LACK OF
GUIDANCE
Interpretation:
The Table-5 is indicating the investors perception regarding the shares.
It is very clear from the table that most of the people are afraid of shares
and they think those risky.
Also when asked about reason many of them answers in not interested.
There are more chances of increase in the investment in shares in the near
future as person are now want to go for that.
Table-6
45%
10%
17%
13%
15%
GRAPH 6
LACK OF
KNOWLEDE
RISKY
15%
13%
45%
17%
10%
LACL OF
GUIDANCE
LACK OF
INTEREST
NO FUND
Interpretation:
The above table shows the peoples perception regarding the mutual fund.
1 From the above table that most of the people have not so much
knowledge regarding the MF. Around 50% people ask about Mutual
Fund.
2 But MF is not think so much risky in comparsion to the shares.
Table-7
Whether people invest in Mutual Funds
YES
NO
5%
95%
GRAPH 7
YES
5%
NO
95%
YES
NO
Interpretation:
The above table and graph shows that only 5% people make investment in
Mutual Funds.
Table-8
INCOME DISTRIBUTION
FUND?
LESS THAN 1.5 TO
1.5 LAKH
LACK OF KNOWLEDGE
RISKY
MORE THAN
3 LAKH
3 LAKH
38%
60%
12%
9%
33%
6.5%
LACK OF GUIDANCE
NOT INTERESTED
LACK OF FUNDS
18%
12%
20%
11%
9%
11%
26%
26%
6.5%
GRAPH 8
70%
60%
50%
40%
30%
MORE THAN 3
LAKH
20%
10%
RI
SK
G
NO
Y
UI
D
T
A
IN
TE NC
LA
RE E
C
ST
K
ED
O
F
FU
ND
S
O
F
K
LA
C
LA
C
O
F
KN
O
W
LE
G
E
0%
Interpretation:
Table-8 indicates the perception of the investors relating to different income
group regarding Mutual Fund.
1 The reason is being lack of guidance and lack of interest.
2 The reason is being lack of knowledge for middle income group.
3 This table also indicates that these people interested in investing in
MF.
Table-9
Whether people invest in Shares
YES
NO
5%
95%
GRAPH 9
YES
5%
YES
NO
NO
95%
Interpretation:
The above table and graph shows that only 5% people make investment in
Shares.
Table-10
Perception regarding Shares based on different Income
Group
WHY NOT SHARES?
DISTRIBUTION OF INCOME
LESS
1.5 TO 3
MORE THAN
3 LAKH
14%
43%
9%
20%
14%
GRAPH 10
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Interpretation:
NO FUND
LACK OF
INTEREST
LACK OF
GUIDANCE
RISKY
LACK OF
KNOWLEDE
MORE THAN 3
LAKH
13%
40%
20%
20%
7%
The above table and graph shows the perception regarding the shares of
the different investors based on income group. It is clear from the above
table that
the investors whose income is less than 1.5 lakh
1 they have not so much funds with them to invest in shares.
2 most of the people think that it is too risky to invest in shares.
the investors whose income is more than 1.5 lakh
1 those people have also a perception in the mind that it is risky.
But if we put a sight on the current situation than we find that the stock
market is performing well, so there is more chances of increase in
investment in shares in near future.
Table-11
Preferred option for investment based on income group
OPTION
INCOME
LESS THAN 1.5
LAKH
BANK
LAKH
66%
37%
13%
PPF/NSC
2%
12%
20%
BONDS
2%
3%
20%
26%
42%
14%
MUTUAL FUND
2%
3%
13%
SHARES
2%
3%
20%
INSURANCE
GRAPH 11
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
PP
BA
NK
F/
NS
C
B
IN O
S N
M UR DS
UT
A
UA NC
E
L
FU
SH ND
AR
ES
INCOME LESS
THAN 1.5
INCOME 1.5 TO
3 LAKH
INCOME MORE
THAN 3 LAKH
Interpretation:
The Table indicates the preferred option for investment of the different
investors based on income groups. It is quite clear form the above table that
investors, whose income is more than 3 lakh, they want to invest their
money in mutual fund and shares for high return. On the other hand
investors, whose income is less than 1.5 lakh, they are more concerned
about the security because they do not have so much money. Middle
income group wantboth security and return as a result they can take some
risk.
Table-12
Purpose of the Investor based on
Income Group
PURPOSE
INCOME
1.5 TO 3 LAC
ABOVE 3 LAC
LAC
SECURITY
RETURN
TAX
70%
26%
4%
60%
31%
9%
BENEFIT
GRAPH 12
80%
70%
60%
50%
40%
30%
20%
10%
0%
SECURITY
RETURN
TAX BENEFIT
LESS THAN
1.5 LAC
1.5 TO 3
LAC
ABOVE 3
LAC
27%
40%
33%
Interpretation:
The Table and graph shows the purpose of investors based on income
group.
Investors whose income is above three lakhs,
1 they are more conscious about tax benefit rather than other groups.
2 They are also ready to take risk for high return.
Investors whose income is less than 1.5 lakhs,
4 they are more conservative and want only security of their money.
Investors whose income is between 1.5 to 3 lakhs
5 they want security as well as high return .
LIMITATION OF THE
STUDY
Each and every study must have some limitations because no one is
sufficient in itself. So this study also have some limitations. Some of the
major are as follows:
The study area is only related to the investors of delhi only and sample
size may small only 100 shopkeepers.
The study is basically based on the Primary data and observation, the
possibility of the personal control be over ruled.
As manully analysis is done, so few error may be there even there are
lot of precautions.
RECOMMENDATIONS
&
SUGGESTION
RECOMMENDATIONS
Till Now, Indian market is in nascent stage. So there is lot of scope in that Industry.
So Company has to follow these recommendation & suggestion.
schemes.
Fund houses should increase tie ups with more banks for direct credit
CONCLUSION
CONCLUSION
During my research project, I improved my knowledge about the
marketing techniques, which is beneficial for my future. I got the
experience from different type of customer. However, after getting the
knowledge about the products as well as about the customers I can say
that
From the above study we can conclude that
1 Most of the people does not have any knowledge about Mutual Fund
2 When we talk with them about investment in shares or mutual funds
then they directly say that this is very much risky.
3 They are afraid of UTI scam.
4 Some peoples are ready for small investments in Mutual Fund
scheme e.g. SIP
5 Low income group like to security first due to that purpose they ignore
risky investment.
1 Most of them preferred that option in which they make investment
earlier.