INVESTMENT PATTERNS OF THE

INVESTOR IN BARODA

by
JINGAR NIRAV (A-27)
THIRD YEAR B.B.A (6ST semester)
Under the guidance of
NAZIYA.S.MANSURI

KAMALABEN RAMANLAL SHAH B.B.A PROGRAMME

FACUITY OF COMMERCE
THE MAHARAJA SAYAJIRAO UNIVERSITY OF
BARODA
 CERTIFICATE

TO WHOMSOEVER IT MAY CONCERN

This is to certify that Mr. NIRAV S. JINGAR has undertaken a project work
on “INVESTMENT PATTERNS OF THE INVESTOR IN BARODA” as a part
of partial fulfillment towards Bachelor of Business Administration (BBA)
Programme with specialization in Accounting & Financial Management. He
has completed the same to my satisfaction in terms of conceptualizing and
implementing this study report.

Place: Vadodara Ms. Naziya Mansuri

Date: 10th April, 2012 (Research Guide)
 DECLARATION

The researcher here by declares that this study entitled A Study On

“INVESTMENT PATTERNS OF THE INVESTOR IN BARODA” submitted
to M.S. University of Baroda in the partial fulfillment of degree of Bachelor of
Business Administration by the researcher under the guidance and supervision of
Ms. Naziya Mansuri, Visiting Faculty, B.B.A Programme, Faculty of Commerce,
M.S. University of Baroda. I hereby declare that the information given herein after,
statement & other related papers enclosed along with this report, are to the best of
my Knowledge & belief, true & correct in all respects.

Dt.: 10th April, 2012

Place: Vadodara

Nirav S. Jingar
(Researcher)
M.S. University of Baroda
T.Y B.B.A
Div:- 1 (Finance)
Roll No:- A-27
 PREFACE

Earlier, people had only one investment pattern to invest in and that is gold.
Sometimes, agricultural land was also considered to be an investment pattern but
this option was affordable only for wealthy people. People didn’t have many
options to invest then, so there was less confusion. But today, investors have many
investment pattern to invest in and this creates confusion and the investor is faced
with questions like where to invest, how to invest, why to invest in a given pattern
and how much to invest. From the ‘why’ we get the aim. From the ‘what’, we are
able to think, analyze and act. From the ‘where’ we see the financial instruments
available for investment. From the ‘when’ we have an understanding when to
invest or divest. And from the ‘how’ we get our investment pattern.

Investment pattern means “how much percent of savings an investor should

allocate to different avenues or different modes of investment”. The study includes
how the investors of different age-group, income group, invest in different
investment pattern to optimize their returns. Before going to investment patterns, it
is essential to understand different age-group, income-group, and saving-group
patterns and one has to understand the theories of different investment avenues.

After this, it will be clear how an individual should decide how an investor
should design his or her investment pattern. Investing in various types of pattern is
an interesting activity that attracts people from all walks of life irrespective of their
occupation, economic status, education and family background. When a person has
more money than he require foe current consumption, he would be coined as a
potential investor. The investor who is having extra cash could invest it in
securities or in any other assets like gold or real estate or could simply deposit in
his / her bank account. The companies that have extra income may like to invest
their money in the extension of the existing firm.

In the past, there was a great deal of investment in banks, which was
considered to be safe and risk-free. Investors were content which the returns on
their investment in bank deposits, as they were very conservative and had only a
few option at that point of time. But the situation has changed now. There are
many investment patterns and a wide variety of choices are open to the investor
these days. Investor can choose a particular investment on the basis of their risk
and return objectives. Investment strategies keep changing from time to time.
 ACKNOWLEDGEMENT

When a man walks a mile, he gets more knowledge than what he can get
from hundred books. Every project is a synthesis of knowledge and experience of
students and experts in their related fields. However the guidance and the help
extended by the experts to the students with the sole benevolent purpose of
intellectual development opportunity to thank those who made my project a
knowledge gathering experience for me.

Words are insufficient to express my gratitude toward Professor (Dr.)

Parimal H. Vyas, Dean, Dept. of Commerce Including Business
Administration, Faculty of Commerce, M.S. University of Baroda. I would like
to thank Prof. Pragnesh Shah (Programme director) of BBA for giving us the
opportunity and allowing us to step out in market and do the research work. I
would like to take this opportunity to express my heartfelt gratitude to Ms. Naziya
Mansuri (Research guide). She helped me in many ways she also guided me on
how to go through this project and helped me whenever I needed her. It was really
been great with you mam. I really loved to work with you and also learnt many
things from you. Thanks being with me mam.

And also thanks to all my faculty members for the proper guidance and
assistance extended by them. I am also grateful to my parents, friends, Mr. Nilesh
Chavan, Mr. Ritesh Kamle, Mr. Mukesh suhanda, Mr. Prakash salunke, Mr.
Viral Patanwadia (B.B.A Administrative Staff) to encourage & giving me moral
support. In addition I would also like to include a note of thanks to all those people
who helped me in doing my research work and also who spared their valuable time
and provided necessary information whenever required and also for constant
encouragement and guidance during the entire project.
 INDEX

CHAPTERS TITLE PAGE

No.
Chp.1 Rationale of The Project 1
Chp.2 Research Methodology 2
2.1 Significance & Need of the Project 2
2.2 Objective Of The Project 2
2.3 Scope Of The Project 3
2.4 Research Design 3
2.5 Universe 3
2.6 Sampling Method 3
2.7 Sample Size 4
2.8 Tools of Data Collection 4
2.9 Treatment of Data 4
Chp.3 Profile of Investment Pattern 5
3.1 Introduction 5
3.2 Meaning of Investment 6
3.3 Why should one Invest? 7
3.4 Investor V/S Speculation 8
3.5 Difference between Saving & Investment 8
3.6 Characteristics of Investment 9
3.7 Objective of Investment 10
Chp.4 Review of Literature 12

4.1 Introduction 12
4.2 Equity shares 14
4.3 Derivatives 17
 4.4 Life Insurance 19
4.5 Real Estate 25
4.6 Bond 27
4.7 Mutual Fund 31
4.8 Money Market Instruments 36
4.9 Non- Marketable Financial Assets 38
4.10 Precious Metals 44
Chp.5 Data Analysis & Interpretations 45
Chp.6 Findings 71
Chp.7 Recommendation 76
Chp.8 Conclusion 79
BIBLIOGRAPHY 83
---- WIBLIOGRAPHY 83
---- COPY OF QUESTIONNAIRE