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Institute of Management Studies Indore (D.A.V.V) : Summer Training Project
Institute of Management Studies Indore (D.A.V.V) : Summer Training Project
Studies
Indore (D.A.V.V)
ASHISH KUMRAWAT
MBA (FT)
IMS, DAVV
DECLARATION
knowledge.
Signature of student
ACKNOWLEDGEMENT
Ashis
h Kumrawat
CONTENTS
• Introduction
• Investment
• Research Methodology
• Conclusion
• Bibliography
Appendix: Questionnaire
INTRODUCTION
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.
Security of original capital: The chance of losing some capital has been a
primary need. This is perhaps the strongest need among investors in India,
who have suffered regularly due to failures of the financial system.
Life Cover: Many investors look for investments that offer good return
with adequate life cover to manage the situations in case of any
eventualities.
Ease of withdrawal: This refers to the ability to invest long term but
withdraw funds when desired. This is strongly linked to a sense of
ownership. It is normally triggered by a need to spend capital, change
investments or cater to changes in other needs. Access to a long-term
investment at short notice can only be had at a substantial cost.
Bullion Market – Precious metals like gold and silver had been a safe
heaven for Indian investors since ages. Besides jewellery these metals are
used for investment purposes also. Since last 1 year, both Gold and Silver
have highly appreciated in value both in the domestic as well as the
international markets. In addition to its attributes as a store of value, the case
for investing in gold revolves around the role it can play as a portfolio
diversifier.
Stock Market – Indian stock markets particularly the BSE and the NSE,
had been a preferred destination not only for the Indian investors but also for
the Foreign investors. Although Indian Markets had been through tough
times due to various scams, but history shows that they recovered very fast.
Many types of scrip had been value creators for the investors. People have
earned fortunes from the stock markets, but there are people who have lost
everything due to incorrect timings or selection of fundamentally weak
companies.
Real Estate- Returns are almost guaranteed because property values are
always on the rise due to a growing world population. Residential real estate
is more than just an investment. There are more ways than ever before to
profit from real estate investment.
Mutual Funds - There is a collection of investors in Mutual funds that have
professional fund managers that invest in the stock market collectively on
behalf of investors. Mutual funds offer a better route to investing in equities
for lay investors. A mutual fund acts like a professional fund manager,
investing the money and passing the returns to its investors. All it deducts is
a management fee and its expenses, which are declared in its offer
document.
Unit Linked Insurance Plans - ULIPs are remarkably alike to mutual funds
in terms of their structure and functioning; premium payments made are
converted into units and a net asset value (NAV) is declared for the same. In
traditional insurance products, the sum assured is the corner stone; in ULIPs
premium payments is the key component.
Need for the study:
To study the perception of the people about investment of their savings.
To understand basic requirement of the common man and their view
towards investment.
REVIEW OF LITERATURE
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.
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 Indore.
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 Indore city and most of the respondents were
customers coming in to financial hubs and commercial complexes.
Formulation of the questionnaire
Data collection
Percentage analysis
Chi-square test
Kendall test
ANOVA
Correlation Analysis
Multiple Response Table
Data Analysis and interpretatrion:-
% Of respondent
50 and
above
20-30
12%
25% 20-30
41-50 31-40
27% 41-50
50 and above
31-40
36%
Fig- 5.3
5-10
7%
0- 1
32%
0- 1
1-5
5-10
1-5
61%
Fig-5.4
Fig-5.4
According to survey most of the Respondent income group is above 1
lacks to 5 lacs.
Table5.3 Qualification
Qualification Investor (%)
High School 3
Graduate 48
Post Graduate 14
Professional 26
Others 9
High School
Others 3%
9%
High School
Professional Graduate
26% Graduate Post Graduate
48% Professional
Others
Post
Graduate
14%
Fig-5.5
18% 8%
17%
28%
29%
Fig-5.6
Analysis:-The survey result shows that individual does not chose equity as
highly preferred investment tool. Only 8% people have preference on other
investment tool.
Investment Horizon
45
40
40
35 31
29
30
25
Series1
20
15
10
5
0
SHORT TERM LONG TERM BOTH
Fig- 5.7
Analysis: The survey result shows that most of the people invest in
the market for long term horizon.
Advertisement and 26
hoardings
Brokerage firm 16
Banks 21
Percentage of investor
50
44
45
40
35
30 27
25 22
20
15
10 6
5
0
Below 5% 5 to 10% 10 to 20% 20 to 30%
Fig-5.8
Analysis :- The survey result shows that most of the people invest in
the equity market 5-10% of income.
Awareness about Religare securities
73% 27%
27
Yes
No
73
Fig- 5.9
Analysis:-
According to the findings Most of the people (73%) know about the
Religare securities.
Preference for selecting broking firm
Analysis : according to survey while selecting the broker firm people gives
first preference to brokerage charge (42%) then other services.
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.
LIMITATIONS OF THE STUDY
2. Gender
(a) Male [ ] (b) Female [ ]
3. 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 [ ]
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
THANK YOU