Investment is the employment of funds with the aim of achieving additional

income or value. The essential quality of an investment is that it involves

waiting for reward . It involves the commitment of resources which have been
saved or put away from current assumption in the hope that some benefits will
accrue in the future. The term investment does not appear to be as simple as it
has been defined. Investment has been future categorized by financial experts
and economists. It has also been confused with the term speculation. The
following discussion will give an explanation of the various ways which
investment is related and differentiated from the financial and economic Sensex
and how speculation differs from investment. However, it must be clearly
established that investment involves long term commitment.

Thus investment may be defined as “a commitment of funds made in the

expectation of some positive rate of return “since the return is expected to
realize in future, there is a possibility that the return actually realized is lower
than the return expected to be realized. This possibility of variation in the actual
return is known as investment risk. Thus every investment involves return and
risk.

F. Amling defines investment as “purchase of financial assets that produces a

yield that is proportionate to the risk assumed over some future investment
period.”

According to sharpe, ”investment is sacrifice of certain present value for some

uncertain future values”.

Investment is the process of employing saved funds in financial

institutions with the hope of gaining high returns in the future,
Investment management is the process of managing the money
employed in financial institutions with the aim of high returns, The
fianancial institutions are catalogued in a case known as an
investment portfolio. An individual with saved money may opy to
invet it in financial institurions as a wat of adding value to money.
Investing for an individual involves identifying the sources of income
for investment such as saving and loans from others. Yhe individuals
then comes up with investment ibjective that will wide his portfolio is
investment decisions. After the funds have been secured, the invesrto
does a market analysis to determine which the best investment
opportunity available are suitable for him.
NEED FO THE STUDY
 The main purpose of the study was to determine about
investment and its functions. It helps to know the investment
made right its inception stage, growth and future prospects.
 The project study was done to ascertain the investment made
which would ultimately help in understanding the benefits of
investments to the investors.
 This research paper is an outcome of the concept of the true for
the investment decision analysis as a whole. Resources available
to the country any year can be invested to produce goods and
services over the next several years. If we accept the need to
apply a time valuation for money flow accordingly in the future
then we do not have to look any futher than principle of
compound growth (or compound interest) for satisfactory
arithmetic approach. We measure time in discrete units such as
year, months, weeks etc. When we compound the growth of
population, demand or accrued interest in a saving account, we
are looking at the present value of the future worth. This if we
can expect to receive a sum of money seven years ahead and
wish to value this is in terms of a present value then we reduce
discount the future valuation by some measurement orate with
reflects our preference for money now rather than in developing
investment risk reduction and adaptation strategies Is also
discussed.
 To study about investment industries in India
 To determine the various types of investments available to the
invertors.
SCOPE IF THE STUDY
The business of investment has a several faces, the employment of
professional fund managers, research (of individual assets and assets
classes), dealing, settlement, marketing, internal auditing, and the
preparation of reports to the clients. The largest financial fund
managers are firms that exhibit all the complexity their size demands.
A part from people who bring money (marketers) and the people who
directly invest (the fund managers), there are compliance staff to
ensure accord with legislative and regulatory constraints, internal
auditors of various kinds to examine internal systems and controls,
financial controllers (to account for the institutions who own the
n=money and costs) .
The present study has been undertaken to observe the risk and returns
associated with few selected investments.

Research methodology
The primary data for the project regarding investment and various
investment decisions were collected through secondary data.
Secondary data:
 Data collected from reports of the company
 Data collected from the publications of the company
 Data collected from journals, magazines and newspapers
 Data collected from the reference books
 OBJECTIV OF THE STUDY
o The project work was taken in order to have reasonable
understanding about the investment industry
o To provide basics idea of different investment
o To study about various types of risk associated with various
investment management
o To help investors in learning about investment in various
segments.

LIMITATION OF THE STUDY

 The study is confined to certain boundaries

 Study is limited as to selected companies and their portfolios
 The data is collected from the secondary source too
 Time period is limited for the research