Perception of People Towards Investment and Various

“Perception of people towards investment and various

investment avenues”

By chetan sharma

OBJECTIVES OF THE STUDY

• PRIMARY OBJECTIVE • To Study the various investment avenues and the investors risk

preference towards it. • SECONDARY OBJECTIVES • To find out the general demographic factors of the investors dealing

in capital market.• To find out the preference level of investors on various Capital Market

instruments.• To find out the type of risk which are considered by the investors?• To find out the ways through which the investors minimizes their risk.

• Savings form an important part of the economy of any nation. With the savings invested in various options available to the people, the money acts as the driver for growth of the country. Indian financial scene too presents a plethora of avenues to the investors. Though certainly not the best or deepest of markets in the world, it has reasonable options for an ordinary man to invest his savings.

• Investment benefits both economy and the society. It is an outgrowth of economic development and the maturation of modern capitalism. For the economy as a whole, aggregate investment sanctioned in the current period is a major factor in determining aggregate demand and, hence, the level of employment. In the long term, current investment determines the economy’s future productive capacity and, ultimately, a growth in the standard of living. By increasing personal wealth, investing can contribute to higher overall economic growth and prosperity. The process of investing helps to create financial markets where companies can raise capital. This too, contributes to greater economic growth and prosperity. Specific types of investments provide other benefits to society as well.

Investments• The dictionary meaning of investment is to commit money in order to earn a

financial return or to make use of the money for future benefits or advantages. People commit money to investments with an expectation to increase their future wealth by investing money to spend in future years. For example, if you invest Rs. 1000 today and earn 10 %over the next year, you will have Rs.1100 one year from today.

• • An investment can be described as perfect if it satisfies all the needs of all

investors. So, the starting point in searching for the perfect investment would be to examine investor needs. If all those needs are met by the investment, then that investment can be termed the perfect investment. Most investors and advisors spend a great deal of time understanding the merits of the thousands of investments available in India. Little time, however, is spent understanding the needs of the investor and ensuring that the most appropriate investments are selected for him.

The Investment Needs of an Investor

• By and large, most investors have eight common needs from their investments:

• 1. Security of Original Capital; • 2. Wealth Accumulation;• 3. Comfort Factor; • 4. Tax Efficiency; • 5. Life Cover; • 6. Income; • 7. Simplicity; • 8. Ease of Withdrawal;• 9. Communication.

Choosing the right investment options

Investment options in India

Research methodology• Research Design• A Research design is purely and simply the framework of plan

for a study that guides the collection and analysis of data. The study is intended to find the investors preference towards various investment avenues. The study design is descriptive in nature.

• TYPE OF RESEARCH- DESCRIPTIVE RESEARCH• Descriptive study is a fact-finding investigation with adequate

interpretation. It is the simplest type of research and is more specific. Mainly designed to gather descriptive information and provides information for formulating more sophisticated studies.

• Sampling Design• Selection of study area: The study area is in Pune• Selection of the sample size: 100 • Sampling Methods

Convenience method of sampling is used to collect the data from the respondents. Researchers or field workers have the freedom to choose whomever they find, thus the name “convenience”. About 100 samples were collected from Pune city and most of the respondents were customers coming in to financial hubs and commercial complexes

Summary of findings• From Correlation test, it is found there exist a positive correlation between

the income percentage on investment and the participation in cash market..• • From the Multiple Response test, it is found that the investors who invest

around 5-10% of their investment mostly considers the market risk(18%) as the major risk which prevails in the market.

• • From the Multiple Response test, it is found that the investors whose

investment is around 10% of their income, consider that the affordable margin amount for investment in Derivatives is up to Rs10000/-.

• • Most of the aggressive investors are in 21-40 yr. age group. They should be

concentrated as prospective clients

conclusion

• In the current scenario, investing is very important and investing in stock markets is a major challenge ever for professionals.

• The young people should start investing earlier so that they can reap the benefits of investing in future.

• People should keep their eye open and keep updating themselves about various investment avenues so that they can get safe returns.

References• Marketing Research by G C Beri- third edition – © 2000, Tata McGraw-Hill Publishing

Company Ltd.• • Investment Management- V.K. Bhalla.• • www.nseindia.com• • www.stockedge.com• • www.investopedia.com• • www.google.com• • www.moneycontrol.com• • www.bseindia.com•

questionaireName:• Age • (a) 20-30 [ ] (b) 31-40 [ ] (c) 41-50 [ ] (d) 51 &

above [ ]• Gender• (a) Male [ ] (b) Female [ ]• • Educational qualification• (a) High School [ ] (b) Graduate [ ] (c) Post Graduate

[ ] (d) Professional [ ] (e) Others [ ]•

• 4. Annual income• (a) Below 1, 00,000 [ ] (b) 1, 00,000-5, 00,000 [ ] • (c) 5, 00,000-10, 00,000 [ ] (d) Above 10, 00,000 [ ]• • 5. How did you come to know about equity related investment? • (a) Brokerage firms (b) investor friends &

relatives• (c) Advertising & hoardings (d) banks• • 6. Which factor do you consider most important while choosing

an investment option? • (a) How quickly will I be able to increase wealth?• (b) The opportunity for steady growth• (c) The amount of monthly income the investment will

generate• (d) The safety of investment principal

• 7. What is the investment horizon you prefer? (a) Short term investment (b) Long term investment (c) Both• 10. Do you want to invest in share market?• (a) Yes (b) No•

• 11. What is your percentage of your income do you invest in equity shares

• a) Below 5%• b) 5 – 10 %• c) 10 – 20%• d) Above 20%• • 12. Do you have Demat account?• (a) Yes (b) No• • 13. You are associated with which broking firm?• ………………………………………………………………………..

• Any questions????????????