CHAPTER I

INTRODUCTION

1
1.1 Introduction
Investment culture among the people is an essential pre-requisite, not just for
capital formation but also for passive contribution in the faster growth of an
economy. Investment culture refers to the attitudes, perceptions and
willingness of the individuals and institutions in placing their savings in
various types of financial assets, more commonly known as investment.
A study of investment culture enables to understand the mode and the
priorities of the investor in the market.
There are parameters that an investor considers before investing his hard
earned money and to get an insight of investment behavior an in- depth study
based on his demographic and psychographic factors of the investor like age,
gender, income groups, etc. is undertaken . The study helps to anticipate the
preferred portfolio of an investor, i.e. a group of probable investment in which
he would preferably invest. It will also assist the market to analyze the
mentality of an investor and to understand his pulse to act accordingly.
Investment has different meaning in finance and economics. In finance
investment is putting money into something with the expectation of gain that
upon thorough analysis has a degree of security of principle, as well as
security of return, within an expected period of time. In contrast putting
money into something with an expectation of gain without thorough analysis,
without security of principle, and without security of return is speculation and
gambling. Investment is related to saving or deferring consumption.
Investment is involved in many areas of the economy, such as business
management and finance whether for households, firms or government.
Investment related to business of a firm – business management.

The investment decision (also known as capital budgeting) is one of the

fundamental decisions of business management: mangers determine the
investment value of the assets that a business enterprise has within control or

2
possession. These assets may be physical (such as building or machinery),
intangible (such as patents, goodwill), or financial. Assets are used to produce
streams of revenue that often are associated with particular cost or outflows.
All together, the manager must determine whether the net present value of
the investment to the enterprises is positive using the marginal cost of capital
that is associated with the particular area of business
To earn and to save for future is the general motive of any investor. The part
of the income to be saved is wisely invested by the investor either on their
own or by the advice of experts to reap future income/benefits or wealth
maximization. Thus essential quality of an investment is that it involves the
expectation of a reward. The future income or the maturity amount is always
expected to be higher due to the time value of money concept. That is, money
in hand is worth more than the same amount in future. Due to the discounting
value of money, an investor always expects his investments to grow with
time. From the available options, the portfolio or the bunch of securities is
selected based on the attitudes, perception, and the willingness of the
investors. The longer the maturity period, the longer is the duration for which
the investor parts with the value of the investment, hence, expecting higher
returns from such investments.
The developing countries like India face the enormous task of finding
sufficient capital in their development efforts. Most of these countries find it
difficult to get out of the –vicious circle of poverty of low income, low saving,
low investment, low employment etc. With high capital output ratio, India
needs very high rates of investments to make a leap forward in her efforts of
attaining high levels of growth. Since the beginning of planning, the emphasis
was on investment as the primary instruments of economic growth and
increase in the national income. In order to have production of target,
investment was considered the crucial determinant and capital formation had
to be supported by appropriate volume of saving.

3
1.2 Statement of the problem
The study was conducted to know the investment culture of individual
investors in TANUR Municipality. In TANUR, there are different people
engaged in their own way of earning.
Investment decisions have its own features, and some of the factors affecting
investment decisions are: expected return, risk factor, global financial
position, political stability, economic environment, banking system, money
value etc.
This study exposes a vivid idea on how its factors influences the investors in
their investment and how the culture and the believes of people living in
TANUR influence the interesting in investment decisions. The occupation,
income level, age, experience in investment etc., play an important role in
their investments. More than these factors, many of the people in TANUR are
not aware about some investment opportunities.

4
1.3 Objectives of the study

1.3.1 Primary objectives

1.3.2 Secondary objectives

TANUR municipality.

various avenues of investment.

To study reason/motives behind their investment.

5
1.4Scope of the study

gives valuable details about the different investment

opportunities. And it gives primary information about investors approach
towards different investment opportunities .and this study helps the investors
to take wise decision in portfolio management, to analyze reason behind the
investment decision and to make an opportunity to re-think about present
investment to study the risk taking mentality of people

6
1.5 Need of the study

To promote the investment habit and make improvement in investment

decision

To aware the people about the various factors influencing their investment
This study helps people to get a positive attitude towards different investment
opportunities and hope the awareness may bring a wise change in the
investment culture in TANUR Municipality.

7
 1.6 RESEARCH METHODOLOGY

1.6.1 Research Design

The study adapts a descriptive research mainly based on primary data. A

detailed
Study is done through structured questionnaire. The findings thus obtained
were tabulated, analyzed and recommendations were taken in to
consideration on the analysis

1.6.2 Research problem

The problem of the study is investment culture of 100 pupil of tanur

municipality

1.6.3 Time period of study

The survey was carried out for 21 days

1.6.4 Sampling size

The survey was carried out between 100 pupils

1.6.5 Sampling method

Convenient sampling is used for the study

Convenience sampling

Convenience sampling is a non-probability sampling technique where

subjects are selected because of their convenient accessibility and proximity
to the researcher

1.6.6 Population

100 pupil in Tanur municipality

8
 1.6.7 Sources of Data

Data refers to information or facts. Often researchers understand by data only

Numerical figure. It also includes descriptive facts, non-numerical

information and.Qualitative and quantitative information. In research, if
data are available, the Research is half complete .Data could be broadly
classified as:

 Primary Data

The study is focused on the impact of tax planning on investment behavior of

salaried class. So the data has been collected from salaried class from both Govt
sector and private sector. But major portion of primary data has collected from
govt employees because the chance of paying taxes by private sector
employees is less. A sample of 50 respondents has selected for collection of
primary data

 Secondary Data
The study is both analytical and descriptive in nature. For that the study requires both
primary and secondary data. The secondary data has been collected from various
journals on tax planning and tax saving instruments, books on tax planning, website
of income tax department.etc

9
1.6.8 Statistical tools used

Percentage Analysis
Percentage analysis is the method to represent raw streams of data
as a percentage (a part in 100 percent) for better understanding of
collected data. Percentage reduced two distributions to a common base, thus
making comparison simple.
Percentage = (Number of respondents/total sample size)*100

10
 1.7 Limitation of the study
o The sample size of 100 may not adequately represent the whole population.

o Some of the persons not so representative

o Refusal to respond because of exposing their income level and about the
investment

o The survey is limited only in TANUR Municipality

o Interviewing the investors in between their busy schedule made the study
difficult

o My limited knowledge in the subject also proved a major constraint

11
1.10 PROFILE OF THE STUDY

INVESTMENT PROFILE
Investment is the commitment of money or capital to purchase financial
instrument or other assets in order to gain profitable returns in the form of
interest, income, or the appreciation of value of the instrument. Investment is
related to saving or deferring consumption
Investment is putting money in to something with the expectation of profit.
More specifically, investment is the commitment of money or capital to
purchase of financial assets so as to gain profitable returns in the form of
interest, dividends, appreciation of the value of the instrument. It is related to
saving or deferring consumption. Investment involves many area of the
economy, such as business management and finance whether for households,
firms, or governments. An investment involves the choice by individuals or
an organization, such as ma pension fund, after some analysis or thought, to
place or lend money in a vehicle, instrument or assets, such as a property,
commodity, stock, bond, financial derivatives or the foreign assets
denominated in foreign currency, that has certain level of risk and provides
the possibility of generating returns over a period of time.

Investment in finance

In finance, investment is the commitment of fund through collateralized

lending or making a deposit into a secured institution.
In contrast to investment; dollar cost averaging, market timing, and
diversification are phrases associated with speculation. Investments are often
made indirectly through intermediaries, such as banks, Brokers, Lenders, and
12
insurance companies. Tough their legal and procedural details differ; an
intermediary generally makes an investment using money from many
individuals, each of whom receives a claim on the intermediary.

Important factors affecting investment decision

Some factors are influenced the investment decision. They are as follows:

Past market trends

Sometimes history repeats itself, sometime markets learn from their mistakes.
We need to understand how various assets classes have performed in the past
before planning your finances.

Risk appetite
The ability to tolerate risk differs from person to person. It depends on the
factors such as financial responsibilities, environment, basic personality etc.
therefore, understanding capacity to take on risk becomes a crucial factor in
investment decision.

Investment Horizon
The time period that an investment is kept called horizon. The longer the time
horizon, the greater are the returns that should expect. Further, the risk
element reduce with time.

Investible surplus
How much money is able to keep aside for investment? The investible surplus
plays a vital role in selecting from various assets classes as the minimum
investments amount differ and so do the risk and return.

13
Investment needs
How much money do you need at the time of maturity? This helps determine
the amount of money need to invest every month or year to reach the magic
figure.

Expected returns
The expected rate of return is a crucial factor as it well guides choice of
investment. Based on expectation, we can decide whether wants to invest
heavily equities or debt or balance your portfolio.

Forms of investment

Investment Option Available

There are a large number of instruments available today. To make out lives
easier we would classify or group them. In India numbers of investment
avenues are available for the investors. Some of them are marketable or liquid
while others are Non marketable and some of them also highly risky while
others are almost riskless. The people has to choose Proper Avenue among
them, depending upon his specific need, risk preference, and return.
1) Equity

2) Debt instrument

3) Corporate Debenture

4) Bank deposits

5) Public Provident Fund

6) Life Insurance

7) Post Office – NSC

14
8) Gold/Silver

9) Real Estate

Shares
Shares are the stock of company held by the general public. It represents
owner’s interest in the business entity. There are two broad types of shares
equity shares, preferential shares. Those that owns shares are called
shareholders. Investment in shares is one of the surest ways of hedging one’s
resources against inflation and economic downturn. The reason is that
investors believe that management of company’s factors in general price level
change into their business activities there by retaining their purchasing power,
and this will in turn translate into corresponding increasing in share price.

Bonds
Bonds are the form of investments in the form of security. Governments are
the principal issuer of bonds. Corporate bodies are also issue bonds but are
popularly known as debentures. People invest in this kind of security for risk
free returns. Risk free return is rewards that accrue to investor with reasonable
certainty with regards return

Preference shares
Preference shares as a part of share capital of the company which enjoys
preferential right to (a) payment of dividend at a fixed rate during the life time
of the company; and (b) the return of capital on winding up of the company.
It is lie in between pure equity and debt. But preference shares cannot be
traded, unlike equity shares, and are redeemed after a pre- determined period.
Also, preferential shareholders do not have voting rights. These are issued to
the public only after a public issue of ordinary shares. Preference share also

15
get trade in the market and give liquidity to investor. Investor can opt for this
type of investment when their risk performance is very low.

Derivatives
Derivatives are instruments for hedging risk. They are risk transferring
instruments. They are called derivatives because they derive their value from
the value of some underlying assets. The underlying asset may be interest
rate, foreign exchange, commodity or share or any security. The main purpose
of this instrument is hedging risk

Depository receipts
Global depository receipts are the instruments in the form of a depository
Receipts or certificate created by the overseas depository bank outside India
Issued to non-resident investors against ordinary shares. A GDR issued in
America is an American Depository Receipts.
As investors seek to diversify their equity holdings, the option of GDR and
ADR is very lucrative, while investing in such securities, investors should
identify the capitalization and risk characterizes of the instrument and the
company’s performance in home Country.

Money market
The money market is a component of the financial markets for assets involved
in short term borrowings and lending with original maturities of one year or
shorter time frames. Trading in the money market involves treasury bills,
commercial bills commercial papers, etc. it provides liquidity funding for the
global financial system. Money markets and capital markets are part of
financial markets

16
Bank deposits
Bank deposits are one of the major investment avenues. The main advantage
of bank deposits is that it ensures safety, liquidity, of the money invested.
Bank mobilizes savings from people. Various bank deposits are as follows:-

a. Fixed deposit account

Money is deposited in these accounts for a fixed period of time. It cannot be
withdrawn before a maturity date by discarding the interest rate at least partly.
The rate of interest given to fixed deposits is higher than other types of
deposits. Rate of interest may be higher if the period of deposit is long

b. Recurring deposits
The purpose of this account is to encourage the public to save regularly a
fixed sum. The amount is paid in total after the stipulated period with interest
on fixed deposits.

c. Time deposits
The time deposit is a money deposit at a banking institution that cannot be
withdrawn for a certain “term” or period of time (unless a penalty is paid).
When the term is over it can be withdrawn or it can be held for another term.
A general speaking is that the longer the term the better the yield on maturity.
The rate of return is higher than for savings account because the requirement
that the deposit be held for an integer multiple of the term gives the bank the
availability to invest it in a higher gain financial product class. However the
return on this type of product is generally lower than that of investments in
riskier products like stock or bonds.

17
d. Savings deposit account
These accounts are mean for middle and low income groups. The customer
can deposit his small savings in this type of account. A saving bank deposit
can be opened by any person with a minimum specified limit. The important
feature of this account is that deposits can be made for any number of times
in a week in this account. But withdrawals can be made only once or twice in
a week. Banks impose some restrictions on the withdrawals to discourage the
habit of frequent withdrawals. Most of the bank permits 50 withdrawals in a
half year. The date of interest payable on such deposits is very low as
compared to fixed deposit accounts by the banks.

Post office savings

Similar to fixed deposit of commercial banks, POTD can be made in
multiples of Rs 50 without any limit. The interest rate on POTD is, in general,
slightly, higher those on bank deposits. The interest is calculated half yearly
and paid annually. No withdrawal is permitted. However, on withdrawals
made between 6 months and 1 year, no interest is payable. On withdrawals
after 1 year, but before the term of deposits, interest is paid for the period of
the deposit has been held, subject to a penal deduction of 2% a POTD account
can be pledged. Deposits in 10 years post office cumulative time deposit
account can be deducted before computing the taxable income under section
80c

18
Real estate investment
Real estate is the phrase used to mean houses. People need building for
varying purposes, but not all can build their own houses. This now create an
opportunity for investors to provide housing to those that cannot afford to
build their own. The process of providing houses providing houses to all those
that cannot be building their own is known as real estate business. If done
well, real estate business is one of the most profitable investments one can
make.

Insurance
Insurance is a one the form of investment. There is thinking that insurance is
only necessary for emergency sake. Insurance promises sure and reliable
return while at the same time taking care of contingencies and unseen
circumstances. These insurance promote insurance cover and also savings
.
Provident fund
A long term savings instruments with a maturity of 15 years it can be made
in monthly installments with a minimum of Rs. 100 an a maximum of Rs.
60000 per annum an interest payable at 8% per annum compounded annually.
It is not transferable, but has nomination facility. One withdrawal per
financial year can be made any time after 5 years from the end of the year in
which subscription is made. Withdrawal is limits to 50% at the end of the 4 th
year. All subscription of PPF is completely free and balances in PPF are not
taken in to account for wealth tax purpose.

19
Gold schemes
Gold schemes refer to schemes offered by various jewelries. Bullion
investment is the other investment opportunity in the form of gold, silver, and
other metals are traded in the metal exchange. The bullion market presents an
opportunity for an investor by offering returns and the en value of future. It
has been absurd that on several occasions, when stock market failed, the gold
market provided a return on investment

Mutual fund
This is an emerging area of investment and there is a large variety of schemes
in the market to suite the requirements of the peoples. The features of the
schemes will be determine the kind of risk that the investment carried but
overall the positions remain the same which is that for equity oriented funds
the risk is greater but at the same time the chances of return are also high.
Mutual fund normally collecting small denomination of money from large
people, then invested in wide variety of port folios.

20
 CHAPTER II
REVIEW
OF
LITERATURE

21
REVIEW OF LITERATURE

1) Fried, (1962) made an extensive and systematic study of 152 mutual fund
preferences, that mutual fund earned an average annual return of 12.4%
.overall result will not suggest widespread inefficiency in the mutual fund
industry for giving information to investors.

2) Grewal s.s and Navjot Grewal (1984) revealed some basic investment
rules and rules for selling shares. They warned the investors not to buy
unlisted shares, as stock exchanges do not permit trading unlisted shares.
Another rule that specify is not to buy inactive shares, i.e., shares in which
transaction take place rarely. A third according to them is not to buy shares
in closely held companies because these shares tend to less active than those
of widely held ones they have a fewer number of shareholders. They conduct
a detailed study of security market.

3) Jack Clark Francis (1986) revealed the importance of the rate of return
in investment and reviewed the possibility of default and bankruptcy risk. He
opined that in uncertain world, investors cannot predict exactly what rate of
return an investment yield. However he suggested that investor can formulate
probability return of the possible return. He also opined that investors must
face the possibility of risk of bankruptcy and default. This is another study
conducted in security market.

4) Manish Mittal and Vyas (2008) Investors have certain cognitive and
emotional weaknesses which come in the way of their investment decisions.
Over the past few years, behavioral finance researchers have scientifically
shown the investors do not always act rationally. They have behavioral basis

22
that lead to systematic errors in the way they process information for
investment decision. Emotional weakness of investors are also determine the
investment culture of people in that particular area.

5) Syama Sundar (2009) conducted a study on “investment culture of

college teachers in Malappuram District”. With the objective analyzing the
investment culture and the different investment channel exploited by them.
The study showed that the majority college teachers in Malappuram district
are not ready to bear risk with regard to their investment. They prefer low risk
bearing investments like bank deposits, provident fund, chit funds etc.

23
 CHAPTER III
DATA ANALYSIS
AND
INTERPRETATION

24
3.1 TABLE SHOWING RELATIONSHIP BETWEEN
SAVINGS AND INVESTMENT

savin No of No of Percenta No of Percentage

gs respondents investor ge of investors in of investors
s in investor return based
fixed s on
rate profit/loss
return
investm
ent
Belo 22 18 81.81% 4 18.18%
w
5000
5000 31 23 74.19% 8 25.80%
-
1000
0
1000 23 9 39.13% 14 60.86%
0-
2000
0
2000 4 3 75% 1 25%
0-
3000
0
3000 13 6 46.16% 7 53.84
0-
4000
0
4000 7 5 71.42% 2 28.57%
0-
5000
0

25
Chart 1 relationship between savings and investment

120.00%

100.00% return based on profit/loss

80.00% fixed rate return investment

60.00%

40.00%

20.00%

0.00%

Interpretation
The above table and chart shows the savings (monthly) of respondents. Out
of these 100 respondents, 22 persons are in the group of below 5000, 30
persons are in the group of 5000-10000, 23 persons are in the group of 10000-
20000, 4 persons are in the group of 20000-30000, 13 persons are the group
of 30000-40000 and only 7 persons have 40000-50000 savings monthly.
Their risky investments are 4%, 8%, 14%, 1%, 7%, and 2% respectively.

26
3.2 Table showing reasons for entering in investment market

Factors No of Total Percentage

respondents
Rate of return 100 100 100%
Interest in 92 100 92%
investment
Hobby 74 100 74%
Pressure from 15 100 15%
others
Utilization of 88 100 88%
disposable
income
3.2.1 Chart

Reasons For Entering Market

120

100

80

60

40

20

0
Rate of return Interest in investment Hobby Pressure from others Utilization of
disposable income

reasons for entering market

Interpretation:-
In the above chart we can see that, out of 100 investors, 100 persons are
attracted to investment by rate of return on investment, 92 peoples have an
interest in investments, 74 peoples are treat as an hobby, 88 persons are
utilizing their disposable income as an investment and only 15 persons are
investing in pressure of others.
27
3.3 table showing factors influenced to invest

Factors No of respondents Percentage

Past experience 39 39%

In their 26 26%
knowledge

Choice of agent 9 9%

Advice experts 18 18%

Pressure of 8 8%
relatives

Total 100 100%

28
3.3.1 CHART

factors influenced to invest

Past experience In their knowledge Choice of agent Advice experts Pressure of relatives

Interpretation: -
The above table & chart shows the various factors influenced to selection of
investment. Out of this 100 investors surveyed, 39% people select the
investment based on their past experience, 26% are select investment in their
knowledge, 9% peoples are selected by the advice from experts, 18% persons
are selected by the choice of agents, 8% peoples are selected investment the
pressure from the relatives for their future.

29
3.4 Table Showing Acquirement of Investment

No of respondents Percentage
Through investment 24 24%
experts/brokers/agent
By self 76 76%
Total 100 100%

3.4.1 Chart

Acquirement of investment

Through investment
experts/brokers/agent

Byself

Interpretations: -
76% investors are purchased investments through investment experts/
brokers/agent and rests of the 24% investors are purchased by self.

30
3.5 Table showing opinion about investment

No of respondents Percentage
Very good 25 25%
Good 42 42%
Average 20 20%
Poor 4 4%
No opinion 9 9%
Total 100 100%

3.5 Chart

Opinion About Investment

Very good Good Average Poor No opinion

Interpretation: -
Out of 100 respondents 25 persons are highly satisfied with their investments,
42 persons are satisfied, 20 persons are felt average in their investment, 4
persons believe poor in their investment and 9 persons.

31
3.6 Table showing most preferable investment scheme

Sl no Nature of No of Percentage
deposits respondents
1 Bank 30 30%
deposits
2 Post office 10 20%
3 Gold 10 10%
4 Curries and 10 10%
chitties
5 Insurance 5 5%
6 Mutual fund 6 6%
7 Business 20 10%
8 Real estate 5 5%
9 Security 4 4%
market
Total 100 100%

32
3.6.1 Chart

Investment Schemes

30

25

20

15

10

0
Bank Post Gold Curries Insurance Mutual Business Real Security
deposits office and fund estate market
chitties

Amount in ivestment

Interpretations: -
Out of 100 investors, 30 of them invest in the bank, a 10 of them are in post
office and a 10 persons each in gold and curries &chitties. Insurance is
preferred by 6 peoples and business is the choice of 20 persons. And few in
security and real estate

33
3.7 Table showing preference of type of return

Type of return No.of respondents Percentage

Fixed rate of 44 44%
return
Return based on 56 56%
profit/loss
Total 100 100%

3.7.1 Chart

preference of type of return

fixed type of return return based on profit/loss

Interpretations: -
Out of the 100 investors 56 percentage prefers the return based on
profit /loss and the other 44 percentage like a fixed amount in return

34
3.8 table showing percentage of disposable income invested in
fixed rate return investment /risk free investment
Respon Risky Percentages of Riskles Percentage of
dents investme investors s investors
nt investm
ent

Belo 27 10 37.03% 17 62.96%

w
10%

10%- 38 12 31.57% 26 68.42%

20%

20%- 21 9 42.85% 12 57.14%

50%

Abov 14 5 35.71% 9 64.28%

e 50%

Total 100

35
3.8.1 Chart

percentage of disposable income invested in fixed rate

return investment /risk free investment
30

25

20

15

10

0
Below 10% 10%-20% 20%-50% Above 50%

Risky investment Riskless investment

Interpretations:-

Out of 100 samples, 27 persons invest below 10% of income for investment,
38 persons are invest 10%-20% of income for investment, 21 persons invest
20%-50% of income for investment and 14 persons invest 50% above in
investment.
The persons who invest below 10% of their income, only 10 persons are
interested to invest in risky investment, out of 38 persons having interested
to invest 10%-20% of their income, only 12 persons are interested to invest
in risky investment, rest of the income groups very poor in invest risky
investment.

36
3.9 table showing opinion about the factors of investment

Factors Very satisfied Satisfied Dissatisfied

No.of perce No.of Perce No.of Perce
respo ntage respo ntage respo ntage
ndents ndents ndents
Bankin 20 20% 60 60% 20 20%
g
system
Politica 12 12% 25 25% 63 63%
l
environ
ment
Econo 24 24% 33 33% 43 43%
mic
environ
ment
Govt. 26 26% 33 33% 41 41%
policies
Social 21 21% 29 29% 50 50%
environ
ment
Techno 19 19% 49 49% 32 32%
logical
environ
ment

37
3.9.1Chart

very satisfied satisfied dissatisfied

20
32
43 41
50
63

60
33 33 49
29
25
20 24 26 21 19
12

Interpretation: -
Out of 100 investors, 20% investors are very satisfied, 60% are satisfied, and
20% are dissatisfied with banking system in our state, 12% investors are very
satisfied, 25% are satisfied and 63% persons are dissatisfied with political
environment prevailing in our state
24% are very satisfied, 33% and 41% are satisfied and dissatisfied with
economic environment in our state
26% are very satisfied, 33% are satisfied, and 41% are dissatisfied regarding
our Govt. policies
21% are very satisfied, 29% are satisfied, and 50% are dissatisfied with social
environment in our state
19% are very satisfied, 49% are satisfied, and 32% are dissatisfied with our
technological environment

38
3.10 Table showing difficulties to enter in investment market

Factors No.of Total Percentage

respondents

Not aware 46 100 46%

about
investment
opportunities

Rigidity to 18 100 18%

enter in this
market
Non 64 100 64%
availability
of disposable
income

De- 41 100 41%

motivation
Fear to risk 58 100 58%

39
3.10.1 Chart

difficulties to enter in investment market

Not aware about investment

26% 20% opportunities
Rigidity to enter in this market
8%
Non availability of disposable
18% income
28% De-motivation

Fear to risk

Inferences: -
In these investors, 46 persons are believe that unaware about investment
opportunities hurdles entrance in investment market, 18 persons are there
have some rigidity to enter this market, 64 persons thought that non
availability of disposable income causes reducing the volume of investments,
41 persons are faced de motivations from friends and relatives, 58 persons
have the fear to take risk on investments.

40
3.11 table showing view of investment in security market

No.of Percentage
respondents
Interested 60 60%
Not 35 35%
interested
Not aware 5 5%
Total 100 100%

3.11.1 Chart

VIEW OF INVESTMENT IN SECURITY MARKET

not aware

not interested

interested

Interpretations:-

Out of the 100 respondents 60 %of them are interested in

investment while 35% are not. And the balance 5 % even not aware
of the investment

41
3.12 table showing the utilization of the income from the
investment

No of respondents Percentage

Further 50 50%
investment

For meeting daily 15 15%

expenses

Capital 15 15%
expenditure

Realizing any 20 20%

liabilities

Total 100 100%

42
3.12.1 Chart

utilization of income

Further investment
For meeting daily expenses
Capital expenditure
Realizing any liabilities

Interpretations:-

Out of the 100 respondents 50% of them re investing it and in the

other half 20 % of them are realizing their liabilities. People are
using income for capital expenditure and for meeting their daily
expenses 15 % each

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3.13 table showing motives behind their investment

Factors No.of Total Percentage

respondents

Less risky 70 100 70%

Return 39 100 39%

Liquidity 17 100 17%

Safety 74 100 74%

Feasibility 88 100 88%

Marketability 20 100 20%

Convertibility 15 100 15%

Social status 17 100 17%

Religious 23 100 23%

factors

44
3.13.1 Chart

motives behind investment

100
90
80
70
60
50
40
30
20
10
0

motives behind investment

Interpretations:-

In the above table and chart, that’s clear that out of 100 investors, 70 persons
are selected their investment because of risk less of investment, 39 peoples
selected reasonable return on investment, 17 peoples are on liquidity, 74 on
safety, 88 on feasibility, 20 persons on marketability, 15 on convertibility, 17
and 23 because of social status and religious factors respectively.

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3.14 table showing the satisfaction of investors

Factors No of respondents Percentage

satisfied 73 73%
Not satisfied 27 27%
Total 100 100%

3.14.1 Chart

SATISFACTION LEVEL

Not satisfied
27%

satisfied
73%

Interpretations:-

Out of the 100 73 percentage of them are satisfied with their investment and
others are not satisfied.

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3.15 table showing ready to make changes in investment pattern

Factors No of respondents Percentage

No of persons 24 24%
who are ready to
make changes
No of persons 76 76%
who are not ready
to make changes
Total 100 100%
3.15.1 Chart

No of persons who are ready to make changes

No of persons who are not ready to make changes

Interpretations: -
From the above table and diagram, we can understand that out of 100
samples, 24 persons are ready to make changes in their investment pattern,
majority of peoples are not ready to make changes in their investment pattern.

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 CHAPTER IV
FINDINGS, SUGEESTIONS
AND
CONCLUSION

48
FINDINGS, SUGEESTIONS AND CONCLUSION
4.1 FINDINGS
The income level and investment habit of the people in TANUR is highly
related and the correlation and coefficient is 0.79

The age level of investors are influencing in their investment, aged

people are not interested in risky investment

Only 36% of peoples are invested in risky investments, rest of 64%

people are riskless investors

Educational qualifications and risk taking capacity are directly related,

the can manage the risk with their knowledge and experience.

Generally our investment environment is not feasible to invest.

34% of people are not interested investment that have return based risk

They have less percentage of high income people and low income are
ready to take risk

All investors are aware about bank deposit, but they have no clear idea
about some modern investment like mutual fund, securities etc.

Only 5% of the respondent invested above 50% of their disposable

income in risky investment.

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4.2 suggestions
People should have known about different investment opportunities and
analysis their risk, cost, benefit factors.

Investors must select a feasible investment decisions.

Public have to understand the pros and cons of different investments

opportunities.

Risk is a part of any activity profit or return is those overtake the risk so
we Should improve our risk management skill.

Government should take policies and actions that can energize the
investment market.

There is an explosion in the growth of middle class families due to double

income and increase the number of working women. Hence effort should be
made to attract women investors by providing right information and
knowledge about the market through advertisement.

The savings are to be pooled and channelized in to productive

investments. There by enhancing the return to investor which may result in
the further investment incorporate securities also

80% of people desired to invest in gold because of increase in price

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4.2 Conclusion
In TANUR Block, people are not much interested in risky investments. There
are several reasons for this phenomenon. The main reason derived from this
study is lack of awareness about different investment opportunities and the
lazy attitudes towards the risky investment. They are not ready to take risk in
their investment and they are satisfied with their fixed and regular return. The
other factors influencing the investment attitude are occupation of persons,
income level, risk taking capacity, and religious and believe. Only 34%
people are invested in risky investments. Out of this 30% of them are not
aware about security market. Because of this lack of awareness the securities
investment become rigid and complicated. So comparing investment like
bank, gold, real estate, business etc. most of the people refused to select risky,
or security investment. Lack of awareness and rigidity to access is the main
reason to become security market as not attractive.

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