Sample Dissertation Report - Ashritha

An Assessment on Investors Preference towards Better Investment: Gold v/s Stock
AN ASSESSMENT ON INVESTORS PREFERENCE TOWARDS

BETTER INVESTMENT:
GOLD V/S STOCK
Dissertation submitted in partial fulfillment of the requirements for the
award of the Degree of
MASTER OF BUSINESS ADMINISTRATION
of
PRESIDENCY UNIVERSITY
By
Ashritha G S
20192MBA0386
Under the guidance of
Dr, Deepika Krishnan
Assistant Professor
School of Management
PRESIDENCY UNIVERSITY
2019-2021
ACKNOWLEDGEMENT
The project titled“An Assessment on Investors Preference towards Better Investment:

Gold V/S Stock” has been a good learning experience.
I wish to extend my thanks to Dr. Krishna Kumar, HOD of Presidency

University, who has extended support in completion of this project.
I thank Dr. Deepika Krishnan, Assistant Professor, School of Management, Pos

for their contribution, guidance and suggestions throughout the duration of the
project.
I extend my sincere gratitude to my guide Dr. Deepika Krishnan for providing

guidance & valuable ideas which helped me to complete this project successfully.
I also thank all the respected faculty members of Department of School of

Management, PRESIDENCY UNIVERSITY for their cooperation and assistance
given to me in this work.
Finally, I am grateful to my parents, friends and well – wishers , who have in some
way contributed to the completion of this project.
DECLARATION BY THE STUDENT
I hereby declare that “An Assessment on Investors Preference towards Better Investment:
Gold V/S Stock” is the result of the project work carried out by me under guidance of Dr.
Deepika Krishnan in partial fulfillment for the award of Master’s Degree in Business
Administration by Presidency University.
I also declare that this project is the outcome of my own efforts and that it is has not been
submitted to any other university or Institute for the award of any degree or Diploma or
Certificate.
Place: Bengaluru Name: Ashritha G S
Date: 23 April 2021 Register Number: 20192MBA0386

CERTIFICATE BY GUIDE
Date: 23 April 2021
This is to certify that the dissertation titled “An Assessment on Investors Preference towards
Better Investment: Gold V/S Stock” is an original work of Ms. Ashritha G S; bearing
University Register Number 20192MBA0386 and is bearing submitted by in partial fulfillment
for the award of the Master’s Degree in Business Administration of Presidency University. The
report has not been submitted earlier either to this University/Institution for the fulfillment of the
requirement of a course of study. Ms. Ashritha G S is guided by Dr. Deepika Krishnan who is
the Faculty Guide as per the regulations of Presidency University.
Signature of Faculty Guide: Signature of Director/Principal/HOD:
Date: Date:
CONTENTS
CHAPTER
TITLE PAGE NO.
NO.
1. INTRODUCTION 1--3
2. REVIEW OF LITERATURE 4-9
3. PROFILE OF THE STUDY ON NSE, BSE & GOLD 10

INSTRUMENT
4. ANALYSIS AND INTERPRETATION 11- 62
5. SUMMARY OF FINDINGS , CONCLUSION AND 63- 64

SUGGESSTIONS
BIBLIOGRAPHY 65- 67
ANNEXURE 68-72
TITLE OF TABLES
TABLE PAGE
TITLE
NO. NO.
4.1 Distribution of respondents on the basis of gender 15
4.2 Distribution of respondents on the basis of Age 15
4.3 Distribution of respondents on the basis of Educational Qualification 18
4.4 Distribution of respondents on the basis of Employment Status 20
4.5 Distribution of respondents on the basis of Annual Income 21
4.6 Distribution of respondents on the basis of preferred Investment 23
Stream – Gold/Stock/Both
4.7 Distribution of respondents on the basis of Objective Factor 24
considered while investing
4.8 Distribution of respondents on the basis of Familiarity in Investment 26
Strategy
4.9 Distribution of respondents on the basis of Fund Ceiling Limit while 28
Investing in Stock Market

4.10 Distribution of respondents on the basis of Level of Risk the investor 30
considers while Investing in Stock, Gold or Both

4.11 Distribution of respondents on the basis of Factors considered while 31
investing in Gold
4.12 Distribution of respondents on the basis of Factors considered while 33
investing in Stock
4.13 Distribution of respondents on the basis of updating themselves on 35
Market News
4.14 Distribution of respondents on the basis of Preference of Investment 36
Avenue during Pandemic
4.15 Distribution of respondents on the basis of Economic Parameter 39

considered while Investing
4.16 Distribution of respondents on the basis of qualities involved to make 40-41
a successful investment career

4.17 Distribution of respondents on the basis of Expected Return while 42
investing in Stock
4.18 Distribution of respondents on the basis of Expected Return while 44
investing in Gold
4.19.1 Distribution of respondents on the basis of Agreement of the 45
Statement – Often Gold is treated protection against Market Risk

Statement- Investment in Gold provides returns in Long

Run
Statement- Gold Investment is still treated as Traditional Avenue for

Investment
Statement – Investment in stock is considered as Risky Activity

4.20 Distribution of respondents on the basis of level of satisfaction on 51
returns of their investment in Gold/ Stock/Both

4.21.1 Distribution of respondents on the basis of Preference on 52-53
Gold/Stock/Both- Volatile Market Situation
4.21.2 Distribution of respondents on the basis of Preference on 54
Gold/Stock/Both- High Returns with Maximum Risk

4.21.3 Distribution of respondents on the basis of Preference on 55-56
Gold/Stock/Both- Minimum risk with low returns

4.21.4 Distribution of respondents on the basis of Preference on 57
Gold/Stock/Both- Yield expectations is better due to the boom in

economic activities.
Hypothesis Testing 58-60
TITLE OF GRAPHS
GRAPH TITLE PAGE
NO. NO.
4.1 Graph representing respondents on the basis of Gender 16
4.2 Graph representing respondents on the basis of Age 17
4.3 Graph representing respondents on the basis of Educational 19

Qualification
4.4 Graph representing respondents on the basis of Employment Status 20
4.5 Graph representing respondents on the basis of Annual Income 22
4.6 Graph representing respondents on the basis of Preferred Investment 23

Stream- Gold/Stock/Both
4.7 Graph representing respondents on the basis of Objective Factor 25
considered while investing
4.8 Graph representing respondents on the basis of Familiarity in 27
Investment Strategy
4.9 Graph representing respondents on the basis of Fund Ceiling Limit 29

while Investing in Stock Market
4.10 Graph representing respondents on the basis of Level of Risk the 30
investor considers while Investing in Stock, Gold or Both
4.11 Graph representing respondents on the basis of Factors considered 32
while investing in Gold
4.12 Graph representing respondents on the basis of Factors considered 34
while investing in Stock
4.13 Graph representing respondents on the basis of updating themselves 36
on Market News
4.14 Graph representing respondents on the basis of Preference of 37
Investment Avenue during Pandemic
4.15 Graph representing respondents on the basis of Economic Parameter 38
4.16 Graph representing respondents on the basis of qualities involved to 41

make a successful investment career
4.17 Graph representing respondents on the basis of Expected Return 43
while investing in Stock
4.18 Graph representing respondents on the basis of Expected Return
while investing in Gold
4.19.1 Graph representing respondents on the basis of Agreement of the 46
Statement – Often Gold is treated protection against Market Risk
Statement – Investment in Gold provides returns in Long Run

Statement - Gold Investment is still treated as Traditional Avenue for
Investment
Statement- Graph representing respondents on the basis of Agreement
of the Statements
4.20 Graph representing respondents on the basis of level of satisfaction 52
on returns of their investment in Gold/ Stock/Both
4.21.1 Graph representing respondents on the basis of Preference on 53
Gold/Stock/Both- Volatile Market Situation
Gold/Stock/Both- High Returns with Maximum Risk
Gold/Stock/Both- Minimum risk with low returns
Gold/Stock/Both- Yield expectations is better due to the boom in
economic activities.
An Assessment on Investors Preference towards Better Investment: Gold v/s
CHAPTER 01 - INTRODUCTION
Investment is one of the most important aspects of financial planning. An investment can also be
called as a sacrifice of current money or other capital resources for future yield. Investment is a
flow of capital which emerges a much more developed economy. Numerous avenues of
investment are available to today. The main aim of investment is to make sure that money is not
idle or unproductive. In general, to invest is to allocate money in the expectation of some benefit
in the future. Investment can be defined as any activity that involves using money in a way
which offers returns in future.
The two key aspects of every investment include - duration and risk. In few investments, only
time will be a dominant attribute. In many other investments, risk appetite would be placed as a
dominant attribute. Yet, in other investments both risk & time are important.
The portfolio of the investors will likely comprise of financial assets (bank deposits, bonds,
stocks), real assets (car, house, land) precious object (gold, silver) etc. The diverse the portfolio
the risk is spread across.
DIFFERENT INVESTEMNT ALTERNARTIVES

1. Deposits
2. Government Saving Schemes
3. Money Market Instruments
4. Bonds/ Instruments
5. Equity Shares
6. Mutual Fund Schemes
7. Insurance Schemes
8. Real Estate
9. Precious Objects
10. Derivatives
OBJECTIVES OF INVESTMENTS
• Safety
• Growth
• Income
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• Tax exemption
• Liquidity
• Capital appreciation
THEORTICAL BACKGROUND OF THE STUDY

For the research, Stock and Gold is considered as the two investment avenue. The investor being
rationale towards investing in various schemes, but to consider the fact the income earned &
savings habitat.
Stock which also refers to Equity shares represents the residual interest in income & wealth
building. These stocks are classified into various broad categories such as:-
1) Blue chip shares

2) Growth shares
3) Income shares
4) Cyclical shares
5) Speculative shares
Gold is another investment platform for an investor to invest in when the economy is boosting its
economic activities towards providing the loans etc. Often gold is categorized under Precious
Objects, but as time has passed Gold are invested in wide area of investing.
The popular ways of investing gold in India are –
1) Physical Gold
2) Gold ETF’s
3) Gold Bonds
4) Coins & Bars
5) Digital Gold
Studies shows that investors prefer gold during periods of market uncertainty; pushing the
demand up during inflation or when the stock market tumbles. This generally influences gold
prices in the short-run. However, a positive income growth will invariably influence the
consumer demand for gold even in the long run.
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IMPORTANCE OF THE STUDY

The significance of the study conducted helps the readers of the research to understand the
basic concepts that not all investment avenues are same. Every investment has its own
distinguishable differences. In broader sense, the dilemma arised by choosing the investment
criteria is huge.
This research paper will demonstrate that group of investors who has been investing in stock or
gold or both having to see better risk – return relationship between two investment criteria’s &
benefit the better clarity onto investment activities.
NEED FOR THE STUDY

Traditionally, in India we see that the people invest in Physical assets than financial assets.
Nowadays, there is a gradual shift from acquiring physical assets into financial asset. When the
two categories of assets are compared more or less the return expected & risk appetite would be
indistinguishable, but several aspects are to be considered while investing in gold or stock.
Investors need to come up with the structured planning in a diversified portfolio to achieve their
expected return.
When we look at these two categories of investment, we find the fundamentals remain the same
for both stock & gold investment. Both, the prices of the investment go through a cyclical path in
nature & go up or down based on various factors. The main difference between these two
categories of investments is that gold prices might go up when the stock prices suffer and gold
prices might fall while the stocks perform well.
An attempt to understand & analyze the investor’s preference with regards to Gold or Stock is
conducted. The various factors influencing the investor’s choice which are persuading them to
invest in either of the asset, factors that influence investor’s investment objective are considered.
The investors opinion on the investing in gold and stock and their income pattern alongside their
investment pattern in the chosen investment.
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CHAPTER 02
REVIEW OF LITERATURE - An Assessment on Investors
Preference towards Better Investment: Gold v/s Stock
INTRODUCTION
The term research refers to systematic method of identifying the problem, collecting the factor
data, analyzing the facts, researching certain conclusions either in the form of solutions towards a
concerned problem or certain generalization for some theoretical formulation.
The review of literature gives light on the concise idea, which is related to a particular area of
research. This is an establishing step towards the precise research field. The review of literature
is a study of the prior studies conducted in this corresponding field. In this way, the researcher
gets ample amount of knowledge about the research process conducted in the respective studies
conducted.
The research “An Assessment on Investors Preference towards Better Investment: Gold v/s Stock”
has considered the 15 articles, reviewed. The articles reviewed from 2003 to 2019. The articles
has been reviewed the
1. J Gajendra Naidu & Karishma Gajendra (2019) in the research article investigated &
interpreted on the gold investors who invest in any forms22 of gold investment. Gold is a
time – tested asset. They have examined, measured & forecasted gold price using
econometrics model. The results showed that there was a significant impact of call money
rate, exchange rate & BSE Sensex on the gold prices in India. There was significant
association between the demographic factors & their awareness on various gold
investment avenues.
2. Yunita Anwar & Martin Surya Mulyadi (2012) compared the gold investment & the
stock investment with the objective of identifying which one could be considered as
better investment alternative & whether the gold is “safe haven “ for investors. The data
on the weekly price of Indonesian Composite was considered for economic analysis.
The results revealed that the gold investment is safe for the investors & categorized as
safe haven. The paper concluded that gold as good portfolio diversifier & a hedge
against
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stocks in extreme stock conditions. Thus, in the research conducted confirmed the
hypothesis that gold investment is more advantages than stock investment.
3. Barinder Singh & J.B. Nadda (2013) examined on the returns of Index of National
Stock Exchange (NSE) and compared with the returns of Gold & also indentified NSE
Index & Gold which is more risky option to the investor. The spot prices of gold traded
was collected along with the Index value form NSE website was collected & different
statistical tools such Standard Deviation & Compounded Annual Growth Rate was
calculated. The research highlighted on the best investment option among Stock market
& gold on Risk return basis. The results were on the people’s preference towards gold
would yield better return than on stock with 8 years of the data. The risk with the
holding the gold would be 1/3 of risk involved in holding the investment in stock
market.
4. Jalpaben Patel & Dr. B. A. Prajapati (2018) examined the interdependence

relationship between Gold, Silver, Crude Oil & Sensex. The research article studied the
variables through descriptive statistics, correlation & regression analysis considering the
data from 2012 to 2016. The research article revealed that the Crude oil has high
correlation with Sensex with the comparison Silver & Gold. The research shows that
from correlation analysis that there is a positive correlation between Gold & Silver &
Crude Oil & Sensex. It shows the negative co-relation between Gold & Crude oil, Gold
& Sensex and Silver & Sensex. The regression analysis, concludes that there is an
impact of Gold, Silver and Crude oil on Sensex.
5. Naveen Kumar R (2016) analysed Gold & Equity ETF’s which of them outperformed
or underperformed & their benchmark index. Gold ETFs were benchmarked against the
domestic gold prices whereas the Equity ETFs against their respective indices. Volatility
of the returns has been measured using Standard Deviation and Beta. The performance of
the ETFs on the other hand has been evaluated using Sharpe ratio and Treynor ratio. To
conclude, Equity ETF’s has provided high returns for quarters when to those benchmark
indices. Though Equity ETF’s included high S.D & Beta followed, but it cannot be
proved that the superiority of any one of the ETF category over the other. In the
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performance evaluation in terms of Sharpe Ratio and Treynor Ratio, both the ETF
markets have exhibited tremendously low ratios showing that none of ETFs, barring
a few exceptions in each market have a return which is higher than the risk free rate
of return to compensate for the risk involved in such investment.
6. Dr. Prashanta Athma and Ms Suchitrak (2011) pointed out in their article that Gold
ETF is an emerging option of the various investment alternatives available to the investor.
The low volatility of gold prices as compared to equity market, weakening of Indian
Rupee against US Dollar and growing uncertainty about global economy resulted in the
emergence of Gold ETF as a strong asset class. Allocation of a small portion of
investment in Gold ETF would diversify the portfolio risk. Inclusion of any Gold ETF in
the portfolio of assets would diversify the risk. Gold ETFs also offer the benefit of lower
incidence of tax. In spite of the merits of holding Gold ETFs, the investment in the same
is low due to the low awareness among the investors and the sentimental attachment of
the investors towards holding gold in the physical form.
7. Shobha C. V (2017) in the research article analyzed Gold as a safer investment to small
& medium investors at Kozhikode District. Analytical research’ technique was adapted
to find whether Gold investment is safer than other alternative investments like stock and
government bond in the present economic situation. Garch Model & Chi Square methods
were followed. In Garch Model, the results showed that risk is less in gold investment
when compared to stock & bond volatility.In Chi Square method the hypothesis ‘gold as
a safer investment alternative among other investment’ by conducting a risk and return
analysis of gold prices, stock index and bond yield for a period 1st quarter of 2012- 1st
quarter of 2017 was proved.
8. Sehaiah S. Venkata,(2003) examined the impact of inflation and exchange rates on gold,
silver and stock returns before and after liberalization. They found that over the longer
period of time, positive real rate of return was being provided by stocks after
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liberalization, by gold in both periods, but in short run the real return of stocks was often
negative. Negative real rate of return was being provided by silver in both the periods.
9. Dr. V Latha & D Deepa (2017) analyzed the retail investors awareness towards gold-
Exchange traded fund in stock market. Sharpe’s Index & Beta was studied with the
records of 3 months of the retail investor’s awareness. In the findings of the study, the
authors inferred that Gold ETF have positive beta and SI. This indicated that they are
performing better than that of risk- free assets. It is also inferred that most of the ETF
do not outperform the risk free assets in the long run. They provide better returns at
shorter durations. Gold ETF is an emerging option of the various investment
alternatives available to the investor.
10. Dirk G. Baur & Brian M. Lucey (2010) portfolio analysis is studied on the Stock,
Bonds and Gold with their return in US, UK & German stocks & to investigate on the
gold being treated as hedge & haven. Econometric model along with descriptive statistics
model is used to study the data collected. The findings of the empirical study were in
favor of gold is a safe haven only for a short period & the property of hedging is used to
minimise the negative effects of the market. Gold would function against hedging only
for a limited period. The investor suggests that an investor buys gold on days when there
is negative return & sells when the market has gained the confidence.
11. Purav Parikh & Anurika Vaish (2013) analysed gold & investor’s perception in
different market conditions. The research uses Descriptive & analytical methodology
based on the secondary sources.The author analyzed the market conditions into
Baseline Inflation Scenario, Deflation Scenario, Stagflation, High Inflation. Through
the findings of the study revealed that Gold remained stable during different market
conditions. The optimal allocation of the investor’s fund into different assets classes
varied with the perceived risk.
12. V.Alagu Pandian & G. Thangadurai (2013) to show the key of various investment
avenues explored the total liquidity, income stability, a variety of investment avenues are
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available as share, bank, companies, gold and silver, real estate, life insurance, postal and
so on . Therefore, all the investors invested their money to get more and more return. In
this fast-moving world, we can earn more and more money more risk leads to more profit.
Investors cannot avoid risk but they can cut down the risk by investing their money. The
researchers conclude that most of the investors prefer bank deposit followed by gold
investment.
13. Parimalakanthi, K. and Kumar, M. Ashok (2015), studied that the major factors
behind an investment are the safety of principal amount, liquidity, income stability, and
appreciation. 22 Investors cannot avoid risks but they can minimize the risk by
investing their money in safe investments so that they can get a moderate profit. Most of
the investors of Coimbatore city prefer bank deposits followed by investments in gold
and silver.
14. Dr. Jyoti H. Lahoti (2017) has conducted an analytical study on the investor’s
perception towards gold as an investment option. Through the study the benefits of
investing in gold, reasons for not investing in gold, different ways of investing in gold are
studied. Risks, Liquidity, tax treatment, Convenience are the reason for investing in gold.
Futures & Options, ETF’s, coins & bars Gold Accumulation Plans, Gold Funds, E- Gold
are different ways of investing in gold. Sometime due to the market volatility leads to
poor- long term returns, the lack of clarity in valuing the gold value become the reasons
for not investing in gold.
15. Dr. Mrs. R.Rupa & Dr.P.Salini (2016) examined on the customer’s preference on the
investment on Gold and also to identify the factors that influences the customers to
invest in gold investment.
The study is conducted from December 2015 to March 2016.Chi- Square Analysis is to
test the attributes. 100 respondents were collected % studied. In the findings of the study,
the author established that there is a significant relation between savings per annum & the
respondent’s belief that gold is a better investment & it would generate a good return.
8
There is significant relationship between annual family income and respondents’ belief
that gold is a better investment and would generate a good return.
RESEARCH GAP
Through the review of literature there are some research gaps which needs to be looked into &
addressed.
Traditionally India is known for its imports of gold, crude oil etc. India is one of the largest
consumers of gold. Gold is invested in various types such as jewellery, Gold bars, coins, ETF’s,
futures. But still gold investment in India is still not popular among people due to many reasons.
There exists still a stress on investor for not investing in gold as part of portfolio- diversification.
In India, investment in stock market majorly equity & derivative market is either considered
as risky investment or the people lack enough knowledge to invest in stock market. Stock
market investment is done by an individual once after he/she gains enough knowledge about
the functioning of the market, its regulations.
The Comparative analysis between investments in Stock vs Gold is limited. The risk- return
analysis is not clearly established in the studies. The confusion & uncertainty existing whether to
invest in stock & gold is not defined in the above review of literature. The individual investors
are either not considered as a major population or the results do not apply to the population. The
Performance of the two- types of investments options is not clearly defined & researched. As a
difference in two categories of the investment, there is a need to study on the factors of guarding
the investment behaviour in the two- categories of the assets.
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PROFILE OF STOCK EXCHANGES IN INDIA

The stock exchanges are the organized market for the purchase & sale of government & listed
industrial & financial securities. In India there are 24 stock exchanges, but currently only 2
stock exchanges have high volume of trade & major companies are listed in 2 stock exchanges.
They are National Stock Exchange & Bombay Stock Exchange.
NSE – National Stock Exchange

It is India’s leading stock exchange covering 370 cities & towns across the country. It provides
fully automated, screen – based transparent trading system. It was established in November,
1992 & started its operation in 1994. For the first time NSE Nifty hit the point of 15,000 during
the COVID -19 recovery in Q4 2020.
BSE – Bombay Stock Exchange

It is the Asia’ oldest stock exchange which roots in Dalal Street, Mumbai, India .It has served as
the oldest stock exchange with having the 11th largest market capitalization. For the first time it
BSE SENSEX hit 50,000 mark during the pandemic COVID – 19 recovery in Q4 2020.
GOLD TRADING IN INDIA
Gold as an instrument is traded in commodities market in MCX 7& NCDEX. They are traded in
Commodity market under contracts – The Gold, Gold Mini, Gold Guinea, and Gold Petal. The
different types mentioned above vary in their settlement time, liquidity, margin to be
maintained.
1
CHAPTER – 03
RESEARCH METHODOLOGY
INTRODUCTION
This chapter provides insight about the research design & process followed in the research. This
chapter includes statement of problem, objectives of the study, hypothesis, scope of the study,
sampling design, data collection methods.
STATEMENT OF PROBLEM
Investments & savings are recognized as powerful tools in the alleviation of poverty. Investing
even a small amount can produce considerable rewards over the period. There are many avenues
to invest individual’s income. Few are Deposits, Bonds/ Debentures, Equity Shares, Mutual
Funds, Retirement Products, Commodities, Precious Metals, Derivatives etc.For investing in the
above alternatives, there are many criteria of evaluation considered by an investor. These criteria
of evaluation include rate of return, risk, marketability, tax shelter, convenience.
The assets chosen for this research - Gold and Stock have their own characteristics which can be
differentiated. Gold is time- tested asset which means its effectiveness can be seen in long term
duration. Whereas, stock can be traded on daily basis which has its own distinguished features.
Studies show that investors prefer gold during periods of uncertainty, pushing the demand up in
the times of inflation, when the stock market tumbles. When an investor oversees the
opportunities lying in market, he undergoes various trade – offs on investment decisions between
gold & stock.
Therefore, when an individual investor decides to make an investment in Gold or Stock they
need to give preference to safety, liquidity, risk, returns etc. These factors would make the
investor end up in uncertainty & hesitation. Very often, investors are in perplexed motion
whether to invest in stock market to earn short/ long term returns or to invest in Gold to earn
benefits of hedging with earning returns on long term.
There are very few research works have been conducted on the investment in Gold and Stock.
The comparative study on the investment preference especially towards gold vs stock is very few
in number. This research study would be humble attempt in this direction to know the preference
1
of individual investors towards investing in Gold or Stock & factors/characteristics influencing

their investment decisions while investing in gold or stock. In this study, the factors which can
influence the investor’s perception towards investing in Gold vs Stock is studied; mainly the
income of the individual investor and the factors involving the investment decisions made while
investing in gold or stock. Few questions which would be addressed in this assessment would
be:-
 What is the profile of the investors?

 On what grounds an investor decide their investment decisions while investing Stock vs
Gold?
 What are the factors which motivate the investment decisions?
OBJECTIVES OF THE STUDY

a) To analyse the profile of the investor’s preference towards Gold or Stock.
b) To identify the factors influencing the investment decisions made by the investors
towards investing in gold or Stock.
c) To find the investors perception towards the risk- rewards investment decisions while
investing towards Gold or Stock.
HYPOTHESIS
H0 – There is no significant association between income of the individual investor and
investment decisions made on investing in stock or gold or both
H1 - There is significant association between income of the individual investor & investment
decisions made on investing in stock or gold.
SCOPE OF THE STUDY

The research is conducted for a period of 2 months to understand the investor’s perception &
preference of investment with special reference to Gold vs Stock.
1
SAMPLING DESIGN
Population – The population considered are the investors which would represent the
characteristics of the universe. The population considered is 300.
Sampling Unit - Respondents who were investors who are currently investing or invested in
stock or gold or both.
Sample Size – With 95 % confidence interval, the sample is determined to be 170 which would
represent the population characteristics.
Sampling Type - For this assessment research, the sampling technique applied is purposive
sampling technique due to the samples being collected on their characteristics & the objective.
DATA COLLECTION METHODS

The data required for the assessment is collected from both primary & secondary sources. The
study would mainly consider primary data which is collected from the individual investors,
through a structured questionnaire. The secondary data is collected from RBI reports, periodicals,
journals & websites etc.
Primary Sources- The questionnaire method of collecting the data is followed & applied.
Population – 300 population
Sample Size- 180 Samples which is representing the population. This sample size is
collected by the sample size formula.
Secondary Sources- Various website, blog such as Bloomberg, Livemint, Quint.
STATISTICAL TOOLS
The tools which are used for this research are Descriptive Statistics, Chi – Square. Chi-square is
used to test the hypothesis.
DEMOGRAPHIC FACTORS
The demographic factors considered for the research are gender, age, qualification, employment
status, annual income, awareness about the investment in stock or gold.
LIMITATION OF THE STUDY

1. The assessment is time specific.
1
2. The markets are volatile in nature which would result the investors to rethink the
decisions made.
3. As the sample size is 180, the perception would differ from one person to another.
4. The responses from the respondents may not be completely free from bias, hesitate to
reveal true facts & figures.
* Formula for calculating Sample Size
Sample Size = n=N * [Z2 * p* (1-p /e2] / N – 1 + (Z2 *p (1-p) /e2]
p = Population = 300
e = margin of error = 0.05 Z= Critical Value = 1.96.
CHAPTERISATION
CHAPTER 1: Introduction
Chapter one provides introductory explanation regarding the study. It includes Introduction,
Different Investment Alternative, Objectives of Investment, Theoretical Background of the study,
Importance of the study & Need for the study.
CHAPTER 2: Review of Literature
Chapter two covers 15 review of literature & research gap.
CHAPTER 3: Research Methodology
Chapter three provides insights about the Statement of problem, Objectives, Hypothesis, Scope,
Sampling Design, Data collection tools, Statistical tools & limitations of the study.
CHAPTER 4: Analysis of The Data & Interpretation
Chapter four provides the data analysis & data interpretation from the data collected. The data
is analyzed in tabular form & presented in the form of graphs & charts. Statistical tools are used
to test the hypothesis.
CHAPTER 5: Summary of Findings, Conclusions & Suggestions
Chapter five presents the summary of the main findings, conclusions & suggestions.
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CHAPTER 04: DATA ANALYSIS & INTREPRETATION

INTRODUCTION
Data analysis is considered to be important strep and heart of the research in the research work.
Data analysis & interpretation is a process of applying statistical practices to organize, represent
describe, evaluate & interpret the data.
In this chapter, the data collected through questionnaire has been tabulated and analyzed with
tools of analysis like percentage. The analyzed data has been presented in the form of graphs
& charts. The data has been interpreted on the basis of analysis.
In research, personnel characteristics of respondents have very significant role to play in

expressing & giving the responses about the problem, keeping this in mind, in this analysis a set
of personal characteristics namely age, gender, education, occupation , income etc of 180
respondents have been examined & presented in this chapter of the research project entitled “An
Assessment on Investors Preference towards Better Investment: Gold V/S Stock”
4.1 Gender
Table 4.1 Distribution of Respondents on the Basis of Gender
GENDER NO OF RESPONDENTS PERCENTAGE (%)
Male 93 51.7
Female 87 48.3
Total 180 100
Source- Primary Data
ANALYSIS –
The above table shows that 51.7% of the respondents are male & 48.3% of the respondents are
female.
1
Graph 4.1 Chart of Respondents on the Basis of Gender
Gender of the Respondents
48.30% MALE
51.70%
FEMALE
INTREPRETATION –
From the above graph 4.1, gender of the sample has been displayed. We can interpret that the
majority of the respondents are male, ie, 93 of 180respondents are male & 87 of 180 respondents
are female as male are known for investment in stock and gold.
4.2 AGE DISTRIBUTION
4.2 Table showing the age group of the respondents
AGE RESPONDENTS PERCENTAGE (%)
20-25 30 16.7%
26-30 42 23.3%
31-35 31 17.2%
36-40 29 16.1%
41-45 15 8.3%
46-50 13 7.2%
51- 55 13 7.2 %
> 55 7 3.9%
1
Total 180 100
Source – Primary Data
Analysis
The above table segregates the respondents based on the age.
30 respondents constituting of 16.7% belong to the age group of 20-25, 42 respondents

constituting 23.3% belong to 26-30, 31 respondents constituting of 17.2 % belong to the age
group 31-35, 29 respondents constituting of 16.1 % belong to the age group 36-40. 15
respondents constituting of 8.3 % belong to the age group 41 -45, 13 respondents constituting of
7.2 % belong to two class of the age group 46 -50& 51-55. 7 respondents constituting of 3.9%
belong to the age group above 55 years.
GRAPH 4.2 GRAPH OF RESPONDENTS ON THE BASIS OF AGE
Age of Respondents
45
40
35
30
25
20
42
15
No of
10 30 31 29
5
15 13 13
0
7
20-25 26-30 31-35 36-40 41-45 46-50 51- 55 > 55
Series2 16.70% 23.30% 17.20% 16.10% 8.30% 7.20% 7.20% 3.90%
Series1 30 42 31 29 15 13 13 7
Age Group(in years)
INTREPRETATION:
From the above graph 4.2, it is inferred that majority of the respondents are in the age group 26-
30 years with respondents of 42 out of 180. It can considered in this way, as youth are
participative in the trading & is considering the different ways of investing their income, not only
1
investing in bank deposits. The least respondents are from the age group above 55 years with
3.90% , as they would not show interest in investing in their retirement fund into trading or gold.
4.3 EDUCATIONAL QUALIFICATION
4.3 Distribution of respondents on the basis of Educational Qualification

QUALIFICATION NO of RESPONDENTS PERCENTAGE (%)
PUC 10 5.6%
Diploma 16 8.9 %
Undergraduate 78 43.3%
Postgraduate 64 35.6%
Professional 12 6.7%
Total 180 100
Analysis
From the above table, it can seen that the majority of 43.3% of the respondents are
Undergraduates, followed by Post graduates with 35.6%, Diploma with 8.9%, Professionals with
6.78%, PUC with 5.6%.
GRAPH 4.3 – GRAPH SHOWING THE EDUCATIONAL QUALIFICATION OF THE

RESPONDENTS
1
No of RESPONDENTS
90
8078
70 64
60
50
40
30
No of
NO of RESPONDENTS
20 16
10 12
10
0
Qualification
INTREPRETATION –
From the above graph 4.3, it can be interpreted that the investors who are undergraduates, ie,
43.6% of the respondents have basic knowledge about investing & trading & have optimistic
approach towards investing in Stock or Gold or Both followed by Postgraduates. This clearly
shows that high qualification is not required to invest but basic & foundational level of
knowledge towards investing strategies & concepts are required.
TABLE 4.4: Table showing distribution of Respondents on the Basis of Employment Status
EMPLOYMENT NO OF RESPONDENTS PERCENTAGE (%)
Student 17 9.4%
Self – Employed 31 17.2%
1
Professional 32 17.8%
Salaried 92 51.1%
Retired 3 1.7%
Homemaker 3 1.7%
Artist 2 1.1%
Total 180 100
Source-Primary Data
ANALYSIS –
From the above table 4.4, it is analyzed that 92 respondents constitute 51.1% are Salaried,
followed by 32 respondents constitute 17.8% belongs to the group of Professional occupation, 31
respondents constitute 17.2% are Self employed business, 17 respondents belonging to student
category, followed by 3 respondents each under Retired & Homemaker & lastly 2 respondents
constituting of Artis.
GRAPH 4.4 GRAPH SHOWING THE EMPLOYMENT STATUS
NO OF RESPONDENTS
10092 90
80
70
60
50 NO OF RESPONDENTS
403132
No of
30
17
20
10 3 3 2
0
EMPLOYMENT
2
INTREPRETATION
From the above graph 4.4, it can be interpreted that majority of the respondents are salaried
which indicated that they have the habit of investing in stock or gold or both followed by
Professional & Self – Employed. Student category shows that the regular income is compulsory
for one to invest. These students are interpreted to have monthly pocket- money in kind to invest
them & which helps in compounding the invested amount. The last category of Retired,
Homemaker & Artist are least concerned about investing in stock as the myth around the risk is
carried while investing in stock or gold. The lack of knowledge makes the category to be
investing the income in bank deposits or post office savings schemes.
4.5 ANNAL INCOME
TABLE 4.5 DISTRIBUTION OF RESPONDENTS ON THE BASIS OF ANNUAL

INCOME
INCOME NO OF RESPONDENTS PERCENTAGES (%)
< 2,50,000 25 13.9
2,50,001 – 4,00,000 26 14.4
4,00,001- 6,00,000 63 35%
6,00,001 -8,00,000 53 29.4 %
>8,00,000 13 7.2%
Total 180 100
ANALYSIS –
From the above table 4.5, it is observed that 25 respondents constituting 13.9% are earning
below 2, 50,000, 26 respondents constituting 14.4% are earning between INR 2,00,001 to
4,00,000 , 63 respondents constituting 35% are earning between INR 4,00,001 – 6,00,001, 53
2
respondents constituting 29.4% are earning between INR 6,00,001 – 8,00,000 and 13
respondents constituting 7.2 % are earning INR above 8,00,000.
GRAPH 4.5 GRAPH SHOWING RESPONDENTS ON BASIS OF ANNUAL INCOME
ANNUAL INCOME OF RESPONDENTS

> 8,00,000 13
6,00,001 -8,00,000 53
4,00,001- 6,00,000 63
2,50,001 – 4,00,000 26
NO OF RESPONDENTS
< 2,50,000 25
0 10 20 30 40 50 60 70
ANNUAL INCOME
INTREPRETATION –
From the above graph 4.5, it can be analyzed it that, the respondents who draw an income between
INR 4,00,001 – 6,00,000 are called the upper middle class, seem to be interested in investing in stock
or gold or both followed by INR 6,00,001 – 8,00,000 which is 53 respondents.
The respondents who draw INR above 8, 00,001 constituting of 13 respondents are least interested
into investing as they might come across the tax liability at higher rate.
4.6 TABLE SHOWING INVESTORS INVESTMENT STREAM
INVESTMENT NO OF RESPONDENTS PERCENTAGE (%)

STREAM
Stock 26 14.4
2
Gold 34 18.9
Both 120 66.7
Total 180 100
ANALYSIS –
From the above table 4.6, the majority of the respondents have opined to invest in both stock &
gold with 120 respondents out of 180 total respondents constituting 66.7%, followed by
investing in gold with 34 respondents constituting 18.9% & lastly to invest in stock with 26
respondents constituting 14.4 respondents.
GRAPH 4.6 – GRAPH SHOWING INVESTMENT STREAM BY AN INVESTOR
INVESTMENT CHOICE FOR AN INVESTOR
14.4
Stock Gold
18.9
Both
66.7
INTREPRETATION –
From the above graph 4.6, the investment choice made by the investor to invest in stock, gold or
both is analyzed. With the majority of the investors choosing both the streams to invest is 66.7%,
while the investors who individually invest in stock are 14.4% & gold are 18.9%.
2
There could be many factors for analyzing these results. One such factor to choose both the
investing streams would be diversification concept. With wide range of investing activities, one
can spread the risk on a diversified basket.
The factor for investing individually in gold would be safety & liquidity purpose the gold
carries.
The factor for investing individually in stock would be gains from price movements & regular
income needs.
TABLE 4.7 TABLE SHOWING THE MAIN INVESTMENT OBJECTIVE INVESTOR

CONSIDERS BEFORE CHOOSING THE INVESTMENT CHOICE IN THE
PREVIOUS QUESTION
INVESTMENT NO OF NO OF TOTAL
OBJECTIVE RESPONDENTS IN RESPONDENTS IN
STOCK GOLD
Capital Appreciation 107 73 180
Regular Financial 151 29 180

Needs
Dividend Returns 175 5 180
Hedging 37 143 180
ANALYSIS –
From the above table 4.7, the investor’s main objective in investing in gold or stock is studied.
The investors’ who consider their main objective as Capital Appreciation in stock are 107 & in
gold are 73. The investor’s who consider their main objective as Regular Financial Needs in
stock are 151 & in gold are 29. The investor’s who consider their main objective as Dividend
2
returns in stock are 175 & in dividend returns are 5. The investor’s who consider their main
objective as hedging in stock are 37 & in gold are 143.
GRAPGH 4.7 GRAPH SHOWING THE INVESTOR’S INVESTMENT OBJECTIVE

WHILE INVESTING IN STOCK OR GOLD
INVESTMENT OBJECTIVE BY THE INVESTORS

200
180175
160151
143
140
120 107 NO OF RESPONDENTS IN GOLD

100
8073
NO OF
60
NO OF RESPONDENTS IN STOCK
40
20 37
29
0
Capital 5
Regular Financial Dividend Hedging

Appreciation Needs Returns
INVESTMENT OBJECTIVE
INTREPRETATION
From the above graph 4.7, the investor’s investment objectives are analyzed & intrepreted. The
main objectives considered while investing in stock are Capital Appreciation, Regular
financial needs & dividend returns. The main objectives considered while investing in gold is
hedging.
The investment objective which fulfills the above the criterion, the investor invests in that
investment stream respectively. The stock stream fulfills the capital appreciation, regular
financial needs & dividend returns & thus is Stock is prominent & popular for the above
objectives.Often, gold is referred to “Safe Haven” because it protects the investment from market
risks & is often treated as hedging option by the investment option. Thus, gold is treated as
alternate to invest & is well known for hedging options.
TABLE 4.8 DISTRIBUTION OF THE RESPONDENTS ON THE BASIS OF THE
2
FAMILIAR WITH THE INVESTMENT STRATEGY
2

STRATEGY BEING
FAMILIAR
Yes 104 57.8%
No 20 11.1%
Not Sure 56 31.1%
Total 180 100
ANALYSIS –
From the above table 4.8, the majority of investors, which is 104 respondents constituting of 57.8%
is sure about the investment strategy & have basic understanding of the investment practices,
followed by the investors who are not sure about their knowledge in investment practices are 56
respondents constituting 31.1%.Lastly, the category of investors who have no knowledge about
the investment practices & strategy are 20 respondents constituting 11.1%.
GRAPH 4.8- GRAPH SHOWING THE INVESTORS KNOWLEDGE IN INVESTMENT

STRATEGY
INVESTORS KNOWLEDGE INVESTMENT STRATEGY
31.10%
Yes
No
57.80% Not Sure
11.10%
2
INTREPRETATION –
From the above chart 4.8, the investor’s knowledge is analyzed & interpreted.
The majority of the respondents which accounts to 57.8% is sure about the investment strategy &
has knowledge about the investment outcomes & its related risk & return. It is followed by the
not sure category of the respondents who have half knowledge about the investment strategies
which accounts to 31.1%. Lastly, the no knowledge category of the respondents who have no
purpose in having knowledge of the investment strategies.
It can be interpreted that majority of the people are aware of the investment strategies, but there
is a need for extra awareness to be created to the people regarding the strategies involved. This
would be gainful to the individuals as this make a proper flow of the funds from one channel to
another channel.
TABLE 4.9 TABLE SHOWING FUND CEILING LIMIT BY THE RESPONDENTS

WHILE INVESTING IN STOCK MARKET
FUND CEILING (INR) NO OF RESPONDENTS PERCENTAGE (%)
< 5,000 18 10
5,001 – 10,000 32 17.8
10,001-15,000 41 22.8
15,001 – 20,000 38 21.1
20,001 – 25,000 22 12.2
25,001- 30,000 06 3.3
>30,000 23 12.8
2
Total 180 100
ANALYSIS –
From the above table 4.9, the fund limit is analyzed. The majority of the respondents are
investing in a limit of INR 10,001 -15,000 with 41 respondents constituting 22.8%. Followed by
the ceiling of INR 15,001 -20,000 with 38 respondents constituting 21.1%, followed by INR
5,001 – 10,000 with 32 respondents & 17.8 % of the total respondents. With the INR above
30,000 has 23 respondents constituting 12.8% & followed by 20,001 – 25,000 with 22
respondents constituting 12.2% . With less than 5,000 INR ceiling the respondents accounted to
18 & 10% of the total respondents. Lastly, INR 25,001 – 30,000 the respondents accounted to 6
constituting 3.3%.
GRAPH 4.9 – GRAPH 4.9 SHOWING THE DISTRIBUTION OF THE FUND CEILING
OF THE INVESTMENT IN STOCK/GOLD/BOTH
Graph Showing Fund Ceiling

45 41
40 38
3532
30
22 23
20 18
No of
15
10
5 6
0
Fund Limit
2
INTREPRETATION –
In the graph 4.9, the highest recorded ceiling limit is INR 10, 001 – 15,000. With the second highest
ceiling is INR 15,001 – 20,000 .The least & minimum ceiling limit recorded is 25,001 -30,000.
It can be interpreted that the respondents are risk – savers than risk – takers. They are likely not to
invest full savings into stock or gold or both. But, would make a part/ proportion of their savings
into stock/gold/both . Though there are people who have high income would invest in stock so we
can see that INR above 30,000 there are investors who invest their huge part of savings into
stock/gold/both. People are slightly cautious while investing in stock/gold/both.
TABLE 4.10 TABLE SHOWING THE LEVEL OF RISK THE INVESTOR CONSIDERS
WHILE INVESTING IN STOCK, GOLD OR BOTH
RISK APPETITE NO OF RESPONDENTS PERCENTAGE (%)
0-5% 43 23.9
5-10% 55 30.6
10-15% 63 35
>15% 19 10.6
Total 180 100
ANALYSIS
The above table 4.10 analyses the risk appetite considered by the respondents while investing
in stock/gold/both. The highest level of risk considered by the respondents lies in 10 -15% with
63 respondents constituting 35%, followed by 5 -10% with 55 respondents constituting 30.6%.
43 respondents opted for 0-5% which constituted 23.9%. The least responses was opted for >15%
with 19 respondents which accounted to 10.6%.
3
GRAPH 4.10 GRAPH SHOWING THE LEVEL OF RISK CONSIDERED WHILE

INVESTING IN STOCK/GOLD/BOTH
RISK APPETITE CONSIDERED

10.6
23.9
0-5%
5-10%
35 10-15%
>15%
30.6
INTREPRETATION –
From the above graph 4.10, it can be interpreted as the people are risk – savers than risk –
takers. The people do consider the risk factor while investing in stock/gold/both.
People look for risk substitutes while investing. There are people who want to undertake risk
& earn maximum returns but the percentage is too low compared to people categorized as
who want to undertake minimum risk while earning less returns but can cover the inflation
cost & cost of investing.
The maximum people are standard risk takers who are willing to consider the risk level of 10
-15% & 5-10% bracket. They are often categorized as “Moderate Risk Taker”
The people who take a step ahead of standard risk takers are willing to consider the risk level
of >15%. They are often categorized as “Aggressive Risk Taker”.
The people who consider the risk under the standard risk takers are willing to consider the
risk level of <5%. They are often considered as “Conservative Risk Taker”.
3
TABLE 4.11 TABLE SHOWING THE FACTORS CONSIDERED WHILE INVESTING

IN GOLD. The Highest Rank is allocated 5 & Least Rank is 1
Safety Liquidity Hedging Returns Risk

Factors
Rank
5 38 24 19 68 31
4 25 49 34 44 28
3 41 37 58 22 22
2 32 50 34 32 32
1 44 20 35 14 67
Total 180
WEIGHTED 34.73 36.46 33.86 44 30.93

AVERAGE
ANALYSIS –
From the above table 4.11, we can see that the ranks are allocated to each qualitative factor
such as safety, liquidity, hedging, returns & risk. With the weighted average, returns is
first objective looked up by the investors. Followed by Liquidity, Safety, Hedging, & Risk.
GRAPH 4.11 GRAPH SHOWING FACTORS CONSIDERED WHILE INVESTING

IN GOLD
3
FACTORS CONSIDERED WHILE INVESTING IN GOLD

80
70 68 67
6058
49 50
50
44 44 5
41
4038 37 4
34 34 35
32 32 31 32
No of
28 3
30 25 24 2
22 22
20 19 1
20
14
10
0
Safety Liquidity Hedging Returns Risk
Factors
INTREPRETATION
From the above graph 4.11 the highest responses for Rank 5 is returns & thus the investor’s
looks for the returns while investing in gold. Followed by liquidity, safety, hedging & lastly
Risk.
This qualitative factors matter mostly to investor while deciding one investment platform
among the various investment avenues.
TABLE 4.12 TABLE SHOWING FACTORS CONSIDERED WHILE INVESTING IN

STOCK
Returns Risk Capital Diversification Affordability

Factors Appetite Appreciation
Rank
3
5 80 40 20 29 11
4 40 67 39 20 14
3 31 33 74 27 15
2 14 27 34 73 32
1 15 13 13 31 108
Total 180
WEIGHTED 34.73 36.46 33.86 44 30.93

AVERAGE
ANALYSIS –
From the above table 4.12, the investors look up for Diversification factor as their priority
factor while investing in Stock. Followed by Risk, Returns, Capital Appreciation & lastly
Affordability .
GRAPH 4.12 – GRAPH SHOWING FACTORS CONSIDERED BY RESPONDENTS

WHILE INVESTING IN STOCK (RANK ORDER STARTS HIGHEST FROM 5 TO
LEAST 1)
3
FACTORS CONSIDERED WHILE INVESTING IN STOCK

120
108
100
5
80
80 74 73 4
67
3
60
NO OF
40 40 39 2
40 33 34 32
31 29 31
27 27 1
20 20
20 14 15 13 13 11 14 15
0
Returns Risk Capital Diversification Affordability
Appreciation
FACTORS
INTREPRETATION –
From the above graph 4.12, it can be interpreted , that diversification is the factor which the
investors look into while investing as the risk is minimized.
Followed by risk, returns, capital appreciation & lastly by affordability. It is the general
notation that the investors look to diversify the risk into a wide variety.
TABLE 4.13 TABLE SHOWING THE RESPONDENTS ON THE UPDATE OF THE

MARKET NEWS?
RESPONSE OF THE NO OF RESPONDENTS PERCENTAGE (%)

RESPONDENTS
Regularly 84 46.7
3
Occasionally 75 41.7
Rarely 17 9.4
Never 4 2.2
Total 180 100
ANALYSIS –
From the above table 4.13, we can analyse that the investors get updated every day regarding the
market news. There is very less proportion who do not get updated by the market news. We can
observe that the 84 respondents constituting 46.7% get updated by the market news regularly.
Followed by the 75 respondents constituting 41.7%, with 17 respondents constituting 9.4% they
belong to the category of rarely. Lastly, 4 respondents responded to not getting updated by the
market news constituting 2.2%.
GRAPH 4.13 GRAH SHOWING THE RESPONDENTS ON UPDATING THEMSELVES

ON THE MARKET NEWS
GRAPH SHOWING THE RESPONSE OF ON

UPDATE OF THE MARKET NEWS
9.4 2.2
Regularly
Occasionally
46.7
Rarely
41.7 Never
3
INTREPRETATION
The majority of the proportion of the chart is occupied by the regular category of the respondents
who get updated by the market news. The occasional category of the respondents belongs to the
second most responded category where they are almost updated by the market news in their daily
life.
It can be interpreted that the investors who are keen in the investing in stock/gold/both are updated
every day.
TABLE 4.14 – TABLE SHOWING THE PREFERENCE OF INVESTMENT AVENUE BY

THE RESPONDENTS DURING THE PANDEMIC SITUATION
INVESTMENT AVENUE NO OF RESPONDENTS PERCENTAGE (%)
Stock 65 36.1
Gold 46 25.6
Both 69 38.3
Total 180 100
ANALYSIS –
From the above table 4.14, we can observe that the respondents wanted to diversify their portfolio
during pandemic situation. This was due the disruptions created by the market & economic cycle.
One side where the gold price was rising & reached peak & on the other side the stock market
was at the verge of crashing & stock prices had dipped at yearly lowest prices.
There was panic in the business environment, thus the respondents wanted to maintain the portfolio
from the economic disruptions & thus chose to invest in both the platform, ie, stock & gold. We can
see that the respondents opted for both the investment avenue with 69 respondents constituting of
38.3% & followed by stock investment with 65 respondents constituting 36.1%. Lastly, the gold
investment has the lowest response among the rest investment avenues. The gold investment saw 46
respondents constituting 25.6%.
3
GRAPH 4.14 GRAPH SHOWING THE RESPONDENTS PREFERENCE OF

STOCK/GOLD/BOTH DURING PANDEMIC SITUATION
PREFERENCE OF THE INVESTMENT DURING

PANDEMIC
38.3 36.1 StockGoldBoth
25.6
INTERPRETATION –
From the above graph 4.14, we can interpret that the investors invested in both the type of asset
during Pandemic. The main motive behind this move was to diversify the risk rather than investing
in only one type of assets.
The investors who only invested in stock had motive to invest in stocks with had lower price. Enter
with lower price & exit the market when price reaches the maximum. This strategy has worked
during pandemic. While Q2 & Q3 had worst effect on stock market but Q4 has shown better
economic repression in terms of stock prices.
The investors who invested in gold had motive to hold the asset which had liquidity feature. Since,
gold belonged to “Precious Objects” & has high liquidity feature. The gold was held by individuals
due to liquidity & less market risk when compared to other investment.
3
TABLE 4.15 – TABLE SHOWING ECONOMIC PARAMETERS CONSIDERED WHILE

INVESTING
ECONOMIC NO OF RESPONDENTS PERCENTAGE (%)

PARAMETERS
Credit Rating 15 8.3
Inflation 38 21.1
Domestic Market Trends 68 37.8
Government Policies 36 20
International Market Trends 23 12.8
Total 180 100
ANALYSIS –
From the above table 4.15, the economic parameters are analyzed. The economic parameters play a
very important role while investing due to its broad manipulation in economic reforms & policies
which directly & indirectly impacts the various stock & commodities market.
A domestic market trend was highest responded parameter by the respondents with 68 respondents
constituting 37.8%. Followed by Inflation parameter with 38 respondents constituting 21.1 % ,
Government Policies with 36 respondents constituting 20%. International Market Trends recorded
23 respondents constituting 12.8%. Lastly, credit rating parameter was considered by 15
respondents with 8.3%.
The domestic market trend acts a basis for the various markets. Inflation is one such factor where
the retails prices are studied. This acts as face for the consumer price index. Government Policies
acts a brain for the every single policies framed. This parameter decides the pace of the nation’s
development & infrastructure. International Market trend is basis for commodities market & futures
& options trading. Lastly, Credit rating is one such parameter which is ignored by most of the
investors. Credit rating decides the debt power of the company & depicts the credit risk evaluation
of the company.
3
GRAPH 4.15 GRAPH SHOWING THE ECONOMIC PARAMETERS CONSIDERED BY

THE RESPONDENTS DURING THE INVESTING ACTIVITY
ECONOMIC PARAMETERS CONSIDERED BY THE RESPONDENTS
12.8 8.3
Credit Rating
21.1 Inflation
20 Domestic Market Trends

Government Policies International Market Tre
37.8
INTREPRETATION
From the above graph 4.15, it can be interpreted that the investors mainly look up for domestic
market trends while investing. This can be for stock/gold/both. Once, after the domestic market
trends are overlooked, the investors look for Inflation parameter. This is primarily due to the
returns expected over time. With inflation factor, the returns are decided. If it is satisfactory, then
the investor goes ahead in looking for government policies. The government policies mainly affect
every sector of the economy. Lastly, International Market Trends & credit rating is considered by
the investor due to contractions & expansions in world business activities & environment.
4
TABLE 4.16 TABLE SHOWING THE QUALITIES INVOLVED IN INVESTING IN TO BE

A SUCCESSFUL INVESTOR.
QUALITIES INVOLVED NO OF RESPONDENTS PERCENTAGE (%)

IN INVESTING
Patience 72 40
Contrary Thinking 16 7.2
Composure 39 21.7
Decisiveness 53 29.4
Total 180 100
ANALYSIS –
From the above table 4.16 , the qualities that needs to be required by the investor for the successful
investor career. The respondents opined that most important quality is Patience with 72 respondents’
compromise 40 %. Decisiveness is another quality followed after patience with 53 respondents
which comprises 29.4%. Composure is the next quality which makes a successful investor career
with 39 respondents comprising 21.7%. Lastly, Contrary thinking is followed by the 16
respondents comprising 7.2%.
GRAPH 4.16 GRAPH SHOWING QUALITIES INVOVLED TO MAKE A

SUCCESSFUL INVESTMENT CAREER
4
QUALITIES INVOLVED IN INVESTING
Patience
29.4
40 Contrary Thinking
Composure
Decisiveness
21.7
7.2
INREPRETATION
From the above graph 4.16, Patience is most important quality which an investor should possess
with majority of the share of 40% in the chart. After which decisiveness is most important quality
with 29.4% followed with composure of 21.7% & Contrary Thinking of 7.2%.
“It is said that the investor who possess only money cannot become wealthy & person with qualities
cannot be an investor”. Thus, one must know the best for & act according. It can interpreted, that a
investor to invest in stock/ gold/both should posses the all the above qualities but he should analyze
the which comes prior to his behaviour.
TABLE 4.17 TABLE SHOWING THE EXPECTED RETURN RESPONDENTS EXPECT

FROM INVESTMENT IN STOCK?
EXPECTED RETURNS NO OF RESPONDENTS PERCENTAGE (%)
0-5% 23 12.8
5-10% 47 26.1
10-15% 63 35
4
15-20% 30 16.7
17 9.4
>20%
Total 180 100
ANALYSIS –
From the above table 4.17, the data can be analyzed as the 63 respondents expects 10-15%
constituting 35% followed by 5-10% with 47 respondents & 26.1%. Followed by 15-20% with 30
respondents constituting 16.7%, 0-5% is followed by 23 respondents & 12.8%. Lastly, 17
respondents expected >20% returns on investment in stock.
GRAPH 4.17 GRAPH SHOWING THE EXPECTED RETURN ON INVESTMENT IN

STOCK
EXPECTED RETURNS ON INVESTMENT IN STOCK

70
63
60
50 47
40
30
NO OF
23
20 17
10
0
0-5% 5-10% 10-15% 15-20% > 20%
RETURNS EXPECTED ON INVESTMENT
4
INTREPRETATION
From the above graph 4.17, we can see that the highest return expected by the investors is in 10 -
15%. Followed by the 5 – 10 %, 15-20%, 0-5%, carried by >20%.
We can interpret that the investors are not much risk- takers, because when the investors are ready
to take risk, they tend to expect more returns. Very few investors are risk – takers & hence their
returns are also high.
TABLE 4.18 TABLES SHOWING THE EXPECTED RETURNS ON INVESTMENT IN

GOLD
EXPECTED RETURNS NO OF RESPONDENTS PERCENTAGE (%)
0-10% 37 20.6
10-20% 69 38.3
>20% 74 41.1
Total 180 100
ANALYSIS
From the above table 4.18, we can analyse that the returns expected is high in >20% category with
74 respondents & 41.1%. Followed by 10-20% with 69 respondents & 38.3% . Lastly, 37
respondents reported to expect 0-10% returns forming 20.6%.
GRAPH 4.18 GRAPH SHOWING EXPECTED RETURNS WHILE INVESTING

IN GOLD
4
EXPECTED RETURNS ON INVESTMENT IN GOLD

8074
69
70
60
50
4037
NO OF
20
10
0
0-10% 10-20% >20%
Retuns expected
INTREPRETATION
From the above table 4.18, investors investing in gold expected higher returns in the category of
>20%. Followed by 10 – 20 % & lastly by 0 -10%.
It can be interpreted that the investors have a positive outlook while investing in gold investment
when compared to investment in stock. The reason may be varied, but one of the major reason is it
is not affected by domestic market trends but international market trends & can be called as
“SAFE HAVEN”.
4.19 .1 DISTRIBUTION OF REPSONDENTS ON THE BASIS OF AGREEMENT OF THE

STATEMENTS- “OFTEN GOLD IS TREATED PROTECTION AGAINST MARKET RISK”
SCALE NO OF RESPONDENTS PERCENTAGE (%)
Strongly agree 29 16.11
Agree 76 42.22
Neutral 62 34.44
Disagree 11 6.11
4
Strongly Disagree 2 1.11
Total 180 100
ANALYSIS
The above table indicates that majority of 42.22% the respondents it can be agreed that often
gold is treated protection against market risk, followed by 34.44% neutrally agreeing with the
above statement.16.11% of the respondents are strongly agreeing & 6.11% are disagreeing with
the statement.
GRAPH 4.19.1 GRAPH SHOWING THE RESPONDENTS & % ON THE STATEMENT

“OFTEN GOLD IS TREATED PROTECTION AGAINST MARKET RISK “
Often gold is treated protection aganist market risk

8076
70
62
60
No of respondents &
50
42.22
40 34.44
30 PERCENTAGE (%)
20 16.11
11
10 6.11
2 1.11
0
Strongly agreeAgree Neutral Disagree Strongly
Disagree
Scale
INTREPRETATION –
From the above graph, it can be proved that majority of 42.22% are agreeing with the statement
because the gold prices do not fluctuate according to the market trends instead uses the international
4
market trends & the demand & supply of the precious object. There are very minority
respondents who are disagreeing to the statement.
4.19.2 INVESTMENT IN GOLD PROVIDES RETURNS IN LONG RUN
TABLE 4.19.2 DISTRIBUTION OF RESPONDENTS ON THE BASIS OF THE

INVESTMENT IN GOLD PROVIDES RETURNS IN LONG RUN
Agree 60 33.33
Neutral 52 28.88
Disagree 28 15.55
Total 180 100
ANALYSIS –
The above table indicates that the respondents are too scattered in the opinion on the above
statement. With 33.33% of the respondents do agree for the above statement, followed by 28.88%
of the respondents who are neutrally agreeing to the statement.35 respondents comprising 19.44%
are strongly agreeing to the statement. 28 respondents constituting 15.55% are disagreeing the
statement. There is minority of the respondents who are completely disagreeing to the statement.
GRAPH 4.19.2 GRAPH SHOWING THE RESPONDENTS DISTRIBUTION ON THE

BASIS OF THE STATEMENT “INVESTMENT IN GOLD PROVIDES RETURNS
IN LONG RUN”
4
INVESTMENT IN GOLD PROVIDES RETURNS IN LONG RUN

70
60
60
52
Nof respondents &
50
40 35 33.33
28.8828
19.44 PERCENTAGE (%)
20 15.55
10 5
2.77
0
Strongly agree Agree Neutral Disagree Strongly
Disagree
SCALE
INTREPRETATION
From the above graph 4.19.2, it can be proved that the investment in gold provides returns in long
run, with the majority of the respondents do agree to the statement. And minority of the respondents
are either neutral or disagreeing with above statement.
TABLE 4.19.3 DISTRIBUTION OF RESPONDENTS ON THE BASIS OF THE GOLD

INVESTMETN IS STILL TREATED AS A TRADITIONAL AVENUE FOR
INVESTMENT
Agree 71 39.44
Neutral 40 22.22
Disagree 19 10.55
4
Total 180 100
ANALYSIS -
The above table indicates that with a majority of the respondents do agree or strongly agree with the
statement - Gold investment is still treated as a traditional avenue for investment. Followed by
22.22% neutrally agreeing to the statement, 10.55% disagreeing to the statement & 2.22%
completely disagreeing the above statement.

BASIS OF THE STATEMENT- “GOLD INVESTMENT IS STILL TREATED AS A
TRADITIONAL AVENUE FOR INVESTMENT”
GOLD INVESTMENT IS STILL TREATED AS A TRADITIONAL AVENUE FOR

INVESTMENT
80
71
70
60
No of respondennts &
50
40 46
30 39.44 40
20
10 25.55 NO OF RESPONDENTS
22.22
0 19 PERCENTAGE (%)
10.55
4 2.22
Strongly agreeAgreeNeutralDisagreeStrongly
Disagree
SCALE
INTREPRETATION –
From the above graph 4.19.3, it can be proved that the majority of 39.44% do agree to the statement.
25.55% strongly agree to the statement. 22.22% are neutrally agreeing to the statement.
It can interpreted that the investors still do look gold as an traditional avenue for investment, though
there has been many reforms made in gold investment such as gold ETF’s etc..
4
TABLE 4.19.4 DISTRIBUTION OF RESPONDENTS ON THE BASIS OF THE

STATEMENT- INVESTMENT IN STOCK IS CONSIDERED AS A RISKY ACTIVITY
Agree 73 40.55
Neutral 19 10.55
Disagree 7 3.88
Total 180 100
ANALYSIS –
The above table indicates that 43.33% respondents strongly agree to the above statement -
investment in stock is considered as a risky activity. 40.55% agree to the above statement. Whereas,
10.55% are neutrally agreeing to the statement, 3.88% disagree to the statement, 1.67% strongly
disagrees to the statement.
We can say that majority do agree to the statement, ie, investment in stock is risky activity

BASIS OF THE STATEMENT- “GOLD INVESTMENT IS STILL TREATED AS A
TRADITIONAL AVENUE FOR INVESTMENT”
5
INVESTMENT IN STOCK IS CONSIDERED AS A RISKY ACTIVITY
90
80 78
73
70
No of respondents &
60
50
40
43.33 40.55
30
20
NO OF RESPONDENTS
10
19 PERCENTAGE (%)
0
10.55
7
3.88 3 1.67
Strongly agreeAgreeNeutralDisagreeStrongly
Disagree
Scale
INTREPRETATION –
From the above graph it can be proved that Investment in stock is considered as a risky activity.
Over 43.33% strongly agree to the statement, followed by 40.55% do agree to the statement. Over
10.55% respondents neutrally agree to the statement. And minority of the respondents are either
disagreeing or completely disagreeing to the statement.
We can interpret that the respondents who agree to the statement are not risk – takers but risk –
avoiders & the respondents who disagree to the statement are risk takers & feel that with the right
knowledge one can think it as investment as saving rather than gambling activity.
TABLE 4.20 TABLE SHOWING THE LEVEL OF SATISFACTION ON RETURNS ON

INVESTMENT IN GOLD/STOCK
LEVEL OF SATISFACTION NO OF RESPONDENTS PERCENTAGE (%)
Highly Satisfied 15 8.3
Satisfied 119 66.1
5
Neutral 32 17.8
Dissatisfied 11 6.1
Fully Dissatisfied 3 1.7
Total 180 100
ANALYSIS –
From the above table 4.20, we can analyse the data as the majority of the respondents are satisfied
with 119 respondents with 66.1%. Followed by the respondents being neutral in the level of
satisfaction with 32 respondents with 17.8% , 15 respondents belonged to the category who were
highly satisfied by the returns earned while investment in stock/gold/both. Lastly, the category of
the respondents who were dissatisfied, are 11 constituting 6.1%. Only 3 respondents were fully
dissatisfied by the returns earned while investing in stock/gold.
GRAPH 4.20 GRAPH SHOWING LEVEL OF SATISFACTION ON RETURNS OF

INVESTMENT WHILE INVESTING IN STOCK/GOLD
LEVEL OF SATISFACTION ON RETURNS OF INVESTMENT

140
119
120
100
80
60
NO OF
NO OF RESPONDENTS
40 32
20 15 11
3
0
Highly SatisfiedSatisfied Neutral DissatisfiedFully
Dissatisfied
LEVEL OF SATISFACTION
5
INTREPRETATION –
From above graph 4.20, the majority of the respondents have been satisfied by the returns earned on
their investment in stock/gold/both. It can be interpreted that 66.7% of the respondents are satisfied
with the returns they earn from stock/gold/both. Followed by respondents who are neutral with
17.8%, which means that there is still scope for the investor to increase the level of satisfaction as
the respondents expect little more to earn from investment in stock/gold/ both .
4.21.1 TABLE SHOWING THE PREFERENCE OF GOLD/STOCK/BOTH IN

THE SITUATION – VOLATILE MARKET - Source- Primary Data

APPROACH
Gold 91 50.55
Stock 23 12.77
Both 66 36.67
Total 180 100
Source-Primary data
ANALYSIS –
The above table indicates that majority of the respondents of 50.55% invest in gold while the stock
market is too volatile & price fluctuation is too high. Followed by 36.67% who invest both in stock &
gold . A very minor portion of the respondents invest in stock to earn higher returns. This means that
the minor portion of the respondents are risk – takers.
5
GRAPH 4.21.1 GRAPH SHOWING THE PREFERENCE OF GOLD/STOCK/BOTH IN THE

SITUATION – VOLATILE MARKET
PREFERENCE OF GOLD/STOCK/BOTH IN VOLATILE MARKET

100
91
90
80
70
66
No of respondents &
60
50.55
NO OF RESPONDENTS
50
40 36.67
30 23 PERCENTAGE (%)
20 12.77
10
0
Gold Stock Both

INVESTMENT AVENUES
INTREPRETATION –
From the above graph, we can interpret that majority of the respondents do invest in gold while is too
volatile. This behaviour is followed because they would not want to take risk while price is fluctuating
too much. Followed by 36.67% respondents who try to get returns from the stock market by invest a
portion of the savings into stock market & invest in gold to avoid the market risk. Lastly, 12.77%
respondents invest in stock alone. This motive is to earn maximum returns from the erratic price
movements.
We can interpret that the investors are too careful in volatile market.
5
TABLE 4.21.2 TABLE SHOWING THE PREFERENCE OF GOLD/STOCK/BOTH IN THE

SITUATION – HIGH RETURNS WITH MAXIMUM RISK

APPROACH
Gold 11 6.11
Stock 79 43.88
Both 90 50
Total 180 100
ANALYSIS –
The above table indicates that the majority of 50% respondents it can be analyzed that the respondents
invest in both gold & stock during the situation – high returns with maximum risk. Followed by 43.88%
invest alone in stock market to earn maximum returns during high risk situation. Lastly, 6.11% invest
in alone in gold when in the market is showing high risk though with maximum returns.
GRAPH 4.21.2 GRAPH SHOWING THE PREFERENCE OF GOLD/STOCK/BOTH IN THE

SITUATION – HIGH RISK WITH MAXIMUM RETURNS
Preference of gold/stock/both during high returns

with maximum risk
100 90
90 79
80
No of respondents &
70
60
50
50 43.88
30 PERCENTAGE (%)
20
10 11
6.11
0
Gold Stock Both

INVESTMENT AVENUES
5
INTREPRETATION –
From the above graph it can be proved that investors when the situation of high risk with maximum
returns invest in both assets- gold & stock. This is because of the diversification of the risk onto wide
portfolio. Followed by, 43.88% who alone invest in stock. These respondents are risk – takers with the
intention to earn high returns. Lastly, 6.11%, respondents who alone invest in gold . These respondents
are generally called as risk avoiders/ risk evaders.
It can be interpreted that the investors are either risk classifiers or risk takers. Very less investors
are risk avoiders.

SITUATION – MINIMUM RISK WITH LOW RETURNS

APPROACH
Gold 79 43.88
Stock 28 15.55
Both 73 40.55
Total 180 100
ANALYSIS –
The above table indicated that with a situation where investors can earn low returns with minimum
risk, the respondents opted to invest in gold. 40.55% respondents chose to invest in both stock & gold,
followed by 15.55% investing in stock with the above situation prevailing.
5
GRAPH 4.21.3 GRAPH SHOWING THE PREFERENCE OF GOLD/STOCK/BOTH IN

THE SITUATION – MINIMUM RISK WITH LOW RETURNS
Preference of gold/stock/both when there is low

returns with minimum risk
90
79
80 73
70
No of respondents &
60
50
40 43.88
40.55
30
NO OF RESPONDENTS
20 28 PERCENTAGE (%)
10
0 15.55
Gold Stock Both

INVESTMENT AVENUES
INTREPRETATION –
From the above graph, it can be seen that with the above situation prevailing the respondents would
prefer gold to invest followed by both- gold & stock & lastly stock. Since in the stock market there
is not much scope for earning the investors look for alternatives to invest & earn. Gold is that when
to invest when the market is having less scope for earning.
It can be interpreted that the investors are keen about their returns earned when investing.

SITUATION – YIELD EXPECTATIONS IS BETTER DUE TO THE BOOM IN THE
ECONOMIC ACTIVITIES

APPROACH
Gold 45 25
Stock 53 29.44
5
Both 82 44.55
Total 180 100
ANALYSIS
The above table indicates that the investors look up for investing in both stock and gold when
there is a boom in economic activities. Followed by 29.44% who invested in stock market .
Lastly ,25% of the respondents invested in gold alone.
GRAPH 4.21.4 GRAPH SHOWING THE PREFERENCE OF GOLD/STOCK/BOTH IN

THE SITUATION - YIELD EXPECTATIONS IS BETTER DUE TO THE BOOM IN
THE ECONOMIC ACTIVITIES
Preference of gold/stock/both when there is

boom in economic activities
100
82
No of respondents &
80
60 53
45 44.55
40 29.44 NO OF RESPONDENTS
25
PERCENTAGE (%)
20
0
Gold Stock Both
INVESTMENT AVENUES
INTREPRETATION –
From the above graph, it can be proved that the investors tend to invest a lot during boom in
economic activities. They would not want to invest in gold/stock/both. With 44.55% investing in
both type of assets – gold & stock, followed by 29.44% investing in stock market & lastly 25%
investing in gold .
This situation can be observed in India during the recovery from pandemic during Q4 activities.
BSE hit 50,000 points & NSE hit 15,000 points proving the bull market & the investors showing
confidence in the economic activities & recovery of the economy.
5
HYPOTHESIS TESTING :
To test the hypothesis on Chi- Square was run on SPSS.
H0 – There is no significant association between income of the individual investor and

investment decisions made on investing in stock or gold or both.
H1 - There is significant association between income of the individual investor & investment
decisions made on investing in stock or gold or both.
CASE PROCESSING SUMMARY
CASES
VALID TOTAL
N % N %
Annual Income & 180 100.0% 180 100.0%

Investors
Preference in
Investment
INDICATIONS:
ROWS – Annual Income
1. < 2,50,000
2. 2,50,001 – 4,00,000
3. 4,00,001 – 6,00,000
4. 6,00,001 – 8,00,000
5. >8,00,000
COLUMNS – Investment Preference
1) Stock
2) Gold
3) Both
5
Chi-Square Test for Association

1 2 3 All
1 9 8 8 25
3.611 4.722 16.667
2 5 9 12 26
3.756 4.911 17.333
3 10 10 43 63
9.100 11.900 42.000
4 2 7 44 53
7.656 10.011 35.333
5 0 0 13 13
1.878 2.456 8.667
All 26 34 120 180
 Cell Contents
Count & Expected count
Chi-Square Test
Chi-Square DF P-Value
Pearson 34.407 8 0.000
Likelihood Ratio 37.967 8 0.000
6
a. 6 cells with expected counts less than 5.
OBSERVATION: From the above table, it is observed that p-value (0.000) is less than
expected p-value (0.05).Thus, we reject Null Hypothesis at 5% level of significance.
INTREPRETATION: Thus, null hypothesis is rejected & alternative hypothesis is accepted.

There is significant association between income of the individual investor & investment
decisions made on investing in stock or gold or both.
CORRELATION BETWEEN FUND CEILING & RETURNS ON

INVESTMENT
The 2 values were run on SPSS
Method used – Karl Pearson’s Method of Correlation
X = Fund Ceiling Y = Returns from Investment in Stock
r = 0.607
INDICATIONS USED
FOR X VARIABLE FOR Y VARIABLE
SCALE INDICATORS SCALE INDICATORS
< 5,000 1 0 – 5% 1
5001- 10000 2 5-10% 2
10001 – 15000 3 10 -15% 3
15000 -20000 4 15 -20% 4
20000 -25000 5 >20% 5
25000 – 30000 6
>30000 7
OBSERVATIONS
180 responses were considered to calculate correlation.
6
INTREPRETATION
Since, r is 0.607 there exists a “positive moderate correlation” between x & y variables. That
is the fund invested in stock market & returns expected from the stock are moderately
correlated. There is a positive direction in the movement of the variables, but not in a specific
direction.
6
CHAPTER 05: SUMMARY OF FINDINGS, CONCLUSION &

SUGGESTIONS
SUMMARY OF FINDINGS
On the basis of analysis & interpretation of the data carried to meet the objectives of the
study, the summary of findings is as follows:
 Majority of the respondents are male who invest in stock/gold/both.

 The age group between 26- 30 years tend to invest in stock/gold/both. The reason
behind is younger generation is more interested in investing in stock markets & gold
rather than latter generation who prefer a nominal returns from the deposits.
 Majority of the respondents are qualified graduates which means high qualification is
not required but basic & fundamental knowledge about trading, investing, effects,
returns, risk is required.
 Majority of the respondents are salaried employee & majority of the respondents are
drawing an annual income of INR 4, 00,001 – 6,00,000. Income of the respondents &
investing & expenditure go hand – in – hand.
 Majority of the respondents (66.7%) prefer to invest both in stock/gold/both.
 Majority of (59.4%) choose stock investment for capital appreciation, 83.8% choose
stock investment for meeting regular financial needs, 97.2% chose stock investment
for dividend returns, 79.4% chose gold for hedging purpose.
 Majority of the respondents (57.8%) are aware of the investment strategy to followed &
applied .
 The fund ceiling of INR 10,001 – 15,000 is the major of the amount to be invested
in stock market.
 The respondents of 35% considered 10 -15% as their risk appetite while investing
in stock/gold/both.
 The respondents viewed “returns” as their first factor while investing in gold.
Followed by liquidity, safety, hedging & lastly risk.
 The respondents primarily viewed “diversification” as their first factor while investing
in stock. Followed by risk, returns , capital appreciation & lastly the affordability.
6
 The respondents constituting 46.7% regularly got updated by the market news.
 The respondents comprising 38.3% preferred both – stock & gold assets to invest during
pandemic situation.
 The respondents constituting 37.8% considered domestic market trends in the most
important economic parameter to be considered while investing.
 The respondents constituting 40% considered “patience” as the most important quality to
have a successful investing career.
 The respondents constituting 35% considered 10 -15% expected return from investment
in stock.
 Majority of 41.1% respondents expected return of >20% while investing in gold.
 Majority of the respondents have agreed to the statement “Often gold is treated
protection against the market risk”.
 33.33% of the respondents agreed to the statement that “Investment in Gold
provides returns in a longer run”.
 Majority of the respondents agreed to the statement “Gold investment is still treated as
a traditional avenue for investment.
 Majority of the respondents agreed to the statement “Investment in stock is considered
as a risky activity”.
 Majority of the respondents (66.1%)represented satisfied level on the returns earned by
them on investment in stock/gold/both.
 Majority of 50.5% preferred to invest in gold during volatile market.
 Approximately 50% of the respondents preferred to invest both in stock & gold
during high returns & maximum risk situation in the stock market.
 The respondents (43.8%) responded to invest in gold while the situation is minimum risk
with low returns.
 Respondents around 45.5% chose to invest in both stock & gold when the
yield expectations are better due to the boom in the economic activities.\
CONCLUSION
"How many millionaires do you know who have become wealthy by investing in savings
accounts? I rest my case." — Robert G. Allen
6
Investment process is an individual goal. Investment is a planned method of safely putting ones
savings into different outlets to get a good return. One needs to attain the best fundamental
knowledge to invest in stock market & earn. Though, while investing in gold this can be
pushed back. One need not have fundamental knowledge while investing but needs to know
about the safety & liquidity factor.
The essential eminence of an investment is that it involves waiting for a reward. Gold as an asset
plays a very important role in an investor’s portfolio as it not only provides stability for returns
but also gives an opportunity to maximize the wealth of the investor .Investors generally buy
gold as a way of diversifying risk. The nature of investment differs from individual to individual
and is unique to each one because it depends on various parameters like future financial goals,
the present & the future income model, capacity to bear the risk, the present requirements and lot
more.
Investment in stocks have increased in the present days due to averse opportunities with updated
technology like discount brokers , mutual fund trackers, personal finance management The
investment decisions are made by the investors on the basis of their risk bearing ability, his
perception about the risk, expectations from the return.
According to Benjamin Graham “An investment operation is one which, upon though analysis ,
promises safety of principal & an adequate return. One’s economic well – being depends
significantly on how wisely or foolishly one invest.
This research study was an attempt to assess the preference of investors in stock or gold or both.
From the above study carried out, there exist a significant association of the individual investors
& investment decisions made to invest in gold/ stock/both. The fear about losing money in
stock market or fear of liquidity on holding physical gold would be dilemmas faced by the
investors.
Thus, investors need to be careful & eagle minded while investing in stock or any reforms of
gold instrument.
6
SUGGESTIONS:
 It is suggested that the media needs to conduct more programmes on

stock market operation to develop more awareness in the mind of people
& aspiring investors.
 People should understand his/ her personal profile which is in relation to
the specific investment requirement to fulfill their financial goals,
understand the investment horizon & risks they are willing to take.
 Mostly, people think gold as a physical asset. But these days, there have
been reforms made such as gold traded ETF’s. The market should create
awareness on gold traded ETF’s. Through this, there would be a high
chance to strike out the chances of robbery, theft, losing its value as days
pass.
 Investment in stock only or investment in gold only is not an ideal
portfolio, it is suggested to diversify their portfolio in various asset classes
based on the risk tolerance level & avoid emotional driven investment
decisions,
 The people should avoid the crowd following & not follow the experts’
recommendation blindly without analyzing their best need.
6
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https://www.indianjournals.com/ijor.aspx?target=ijor:apjrbm&volume=2&issue=1&article=005
http://granthaalayah.com/Articles/Vol5Iss11/04_IJRG17_A11_771.pdf ( Shobha)
https://www.researchgate.net/publication/315331415_A_Study_on_Consumer%27s_Preference_To
wards_Gold_as_an_Investment_With_Reference_to_Coimbatore_City
https://vdocuments.mx/impact-of-macroeconomic-variables-on-of-macroeconomic-variables-on-
stock-market.html
https://www.allresearchjournal.com/archives/2017/vol3issue4/PartJ/3-4-80-820.pdf “Retail investors

awareness towards gold – Exchange traded fund in stock market with special reference to
Coimbatore district”,
https://brianmlucey.files.wordpress.com/2011/05/gold_safehavenorhedge_fr.pdf
https://www.ripublication.com/gjmbs_spl/gjmbsv3n8_01.pdf “Gold and Investor’s Perspective in

Different Market Conditions”
https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.300.7706&rep=rep1&type=pdf “ A Study
of Investors Preference towards Various Investments Avenues in Dehradun District”
https://pdfs.semanticscholar.org/8bb0/9ee8bb43eb48169eccf5c18d9ecf55c47191.pdf’ A Study on
Investment Preference and behaviour of Individual Investors in Coimbatore City”
https://www.worldwidejournals.com/paripex/recent_issues_pdf/2017/March/March_2017_14918200
00 186.pdf “An Analytical Study on Perception of investors towards Gold as an Investment
Option”
6
ANNEXURES
QUESTIONNAIRE
I am Ashritha GS, MBA student at Presidency University, Bengaluru. This questionnaire is part
of the project of the project topic –‘An Assessment on Investors Preference towards Better
Investment: Gold v/s Stock’. The information provided by you will be strictly confidential &
will be solely used for academic purpose. There are no right and wrong answers, feel free to
express your honest opinion. Thank you.
1. Name :
2. Gender :
a. Male
b. Female
3. Age:
20-25
26-30
31-35
36-40
41-45
46-50
Above 55
4. Educational Qualification:
PUC
Diploma
Under
graduate Post
graduate
Professional
5. Employment Status:
Student
Self – Employed
Professional
Salaried
7
Others
6. Annual Income :
Below 2,50,000
2,50,000 – 4,00,000
4,00,001 – 6,00,000
6,00,001 – 8,00,000
Above 8,00,001
7. Are you an investor in the below investment

stream? Gold StockBoth
8. Please choose the main investment objective you consider before choosing the
above investment avenues –
Main Objective Factor Gold Stock
Capital Appreciation/Growth
Income/Regular Financial
Needs
Dividend Returns
Hedging
9. Are you familiar with the investment procedure/technique/functionality

followed? Yes No Not Sure
10. What are the fund ceiling/restraints you consider while investing in stock market ?
Below – 5,000
5,001 - 10,000
10,001 -15,000
15,001- 20,000
20,001 – 25,000
25,001 – 30,000
7
Above 30,000
11. What is level of risk you consider while investing in stock, gold or both? Risk scale from
0-15?
0-5 % 5-10 % 10- 15%
12. What are the factors considered in selecting gold while investing? Please rank them in
the scale upto 5 lowest from 1?
Factors Rank 1 Rank 2 Rank 3 Rank 4 Rank 5
Safety
Liquidity
Hedging
Returns
Risk
13. What are the factors considered in selecting Stock while investing? Please rank them on
a scale from 1 to 5 ?
Factors Rank 1 Rank 2 Rank 3 Rank 4 Rank 5
Returns
Risk Appetite
Capital
Appreciation
Diversification
Affordability
14. Do you read/get updated by the market news/ trends?

Regularly Occasionally Rarely Never
15. What is the most important economic parameter you consider while
investing? Credit Rating Inflation Market Trends
Government Policies
7
International Market Trends

16. What are the qualities you think an investor has to have to be a successful
investor? Patience Contrary Thinking Composure Decisiveness
17. Do you agree with following statements :-
Statement Strongly Agree Agree Neutral Disagree Strongly
Disagree
Often Gold is
treated
protection
against market
risk
Investment in
Gold provide
returns in a
longer run
Gold
investment is
still treated as
an traditional
avenue for
investment.
Investment in
stock is
considered as a
risky activity.
18. What is the expected return you expect from investment in Stock
? 0-5 % 5- 10% 10-15 % 15-20% >20%
19. What is the expected return you expect from investment in Gold
? 0-10 % 10- 20 % >20 %
20. Are you satisfied about the returns you earn on investment in gold/stock?
Highly Satisfied Satisfied Neutral Dissatisfied Fully Dissatisfied
21. Would prefer Gold or stock investment in below situations?
7
Situations Gold Stock Both
Volatile
Market/Fluctuating
Market
High returns with
maximum risk
Minimum risk with low
returns
Yield expectations is
better due to the boom in
the economic activities
22. During the Pandemic situation, which investment avenue did you prefer?
Stock Gold Both

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An Assessment on Investors Preference towards Better Investment: Gold v/s Stock

AN ASSESSMENT ON INVESTORS PREFERENCE TOWARDS

award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

Dr, Deepika Krishnan

The project titled“An Assessment on Investors Preference towards Better Investment:

I wish to extend my thanks to Dr. Krishna Kumar, HOD of Presidency

I thank Dr. Deepika Krishnan, Assistant Professor, School of Management, Pos

I extend my sincere gratitude to my guide Dr. Deepika Krishnan for providing

I also thank all the respected faculty members of Department of School of

DECLARATION BY THE STUDENT

Place: Bengaluru Name: Ashritha G S

Date: 23 April 2021 Register Number: 20192MBA0386

Date: 23 April 2021

Signature of Faculty Guide: Signature of Director/Principal/HOD:

2. REVIEW OF LITERATURE 4-9

3. PROFILE OF THE STUDY ON NSE, BSE & GOLD 10

4. ANALYSIS AND INTERPRETATION 11- 62

5. SUMMARY OF FINDINGS , CONCLUSION AND 63- 64

4.1 Distribution of respondents on the basis of gender 15

4.2 Distribution of respondents on the basis of Age 15

4.3 Distribution of respondents on the basis of Educational Qualification 18

4.4 Distribution of respondents on the basis of Employment Status 20

4.5 Distribution of respondents on the basis of Annual Income 21

4.6 Distribution of respondents on the basis of preferred Investment 23

4.7 Distribution of respondents on the basis of Objective Factor 24

considered while investing

4.8 Distribution of respondents on the basis of Familiarity in Investment 26

Investing in Stock Market

considers while Investing in Stock, Gold or Both

4.15 Distribution of respondents on the basis of Economic Parameter 39

considered while Investing

4.16 Distribution of respondents on the basis of qualities involved to make 40-41

a successful investment career

Statement – Often Gold is treated protection against Market Risk

Statement- Investment in Gold provides returns in Long

Statement- Gold Investment is still treated as Traditional Avenue for

Statement – Investment in stock is considered as Risky Activity

returns of their investment in Gold/ Stock/Both

Gold/Stock/Both- Volatile Market Situation

4.21.2 Distribution of respondents on the basis of Preference on 54

Gold/Stock/Both- High Returns with Maximum Risk

Gold/Stock/Both- Minimum risk with low returns

Gold/Stock/Both- Yield expectations is better due to the boom in

4.1 Graph representing respondents on the basis of Gender 16

4.2 Graph representing respondents on the basis of Age 17

4.3 Graph representing respondents on the basis of Educational 19

4.5 Graph representing respondents on the basis of Annual Income 22

4.6 Graph representing respondents on the basis of Preferred Investment 23

4.9 Graph representing respondents on the basis of Fund Ceiling Limit 29

4.15 Graph representing respondents on the basis of Economic Parameter 38

4.16 Graph representing respondents on the basis of qualities involved to 41

4.19.3 Graph representing respondents on the basis of Agreement of the 49

DIFFERENT INVESTEMNT ALTERNARTIVES

THEORTICAL BACKGROUND OF THE STUDY

1) Blue chip shares