A STUDY ON WORKING OF THE LIFE INSURANCE

CORPORATION OF INDIA
A Project report submitted to

P G R R CENTER FOR DISTANCE EDUCATION

OSMANIA UNIVERSITY
In partial fulfillment of the requirements for the award of the degree

MASTER OF BUSINESS ADMINISTRATION

Submitted By
Prathipati Madhu
(Enrolment No: 094225010379)

Under The Guidance Of

DR G Vidyasagar Rao
Dept. of Business Management (O.U)
 P G R R CENTER FOR DISTANCE EDUCATION
OSMANIA UNIVERSITY
In partial fulfilment of the requirements for the award of the degree

MASTER OF BUSINESS ADMINISTRATION

2021- 2023

CERTIFICATE

This is to certify that the Project titled “A Study on Working of The Life
Insurance Corporation of India” is a bonafide work of Mr. Prathipati
Madhu, carried out in partial fulfilment for the award of the degree of MBA-
Finance from Prof. G. Ram Reddy Centre for Distance Education, Osmania
University, under my guidance.

Signature of Guide.

Name and Address of the Guide:

Prof. Dr G Vidya Sagar Rao
Dept. of Business Management (O.U)
Hyderabad.
 DECLARATION

I hereby declare that the Training Report was submitted by me under the supervision and
guidance of DR G Vidya Sagar Rao Dept. of Business Management (O.U) on A Study
on Working of The Life Insurance Corporation of India in partial fulfilment of
MBA 2nd year, P G R R CENTER FOR DISTANCE EDUCATION OSMANIA
UNIVERSITY. I further declare that I am solely responsible for the omission and
commission of errors if any.

The project is an original work done by me and to the best of my knowledge, this work is not
submitted to any other college or university for the award of any other degree, diploma, or
fellowship.

Prathipati Madhu
(Enrolment No: 094225010379)
 ACKNOWLEDGEMENT

I take this as a privilege to acknowledge the helping hand extended by my project supervisor,
DR G Vidya Sagar Rao Dept. of Business Management (O.U), Hyderabad, who stood by
me in all phases of the development of this project idea till completion of the thesis work.
Words cannot match to express my thoughts.

I would like to thank “ALL THE RESPONDENTS” who helped me to complete my

project and shared their opinions through an online survey. I should also be thankful for their
patience and valuable response to completing my project successfully .

Prathipati Madhu
(Enrolment No: 094225010379)
INTRODUCTION
 1.INTRODUCTION

The story of insurance is probably as old as the story of mankind. The same instinct that prompts
modern businessmen today to secure themselves against loss and disaster existed in primitive men also.
They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make
some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development
of the recent past, particularly after the industrial era – past few centuries – yet its beginnings date back
almost 6000 years.

Life Insurance in its modern form came to India from England in the year 1818. Oriental Life
Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil.
All the insurance companies established during that period were brought up with the purpose of looking
after the needs of European community and Indian natives were not being insured by these companies.
However, later with the efforts of eminent people like Babu Muttylal Seal, the foreign life insurance
companies started insuring Indian lives. But Indian lives were being treated as sub-standard lives and heavy
extra premiums were being charged on them. Bombay Mutual Life Assurance Society heralded the birth of
first Indian life insurance company in the year 1870, and covered Indian lives at normal rates.

Starting as Indian enterprise with highly patriotic motives, insurance companies came into existence
to carry the message of insurance and social security through insurance to various sectors of society. Bharat
Insurance Company (1896) was also one of such companies inspired by nationalism. The Swadeshi
movement of 1905-1907 gave rise to more insurance companies. The United India in Madras, National
Indian and National Insurance in Calcutta and the Co-operative Assurance at Lahore were established in
1906. In 1907, Hindustan Co-operative Insurance Company took its birth in one of the rooms of the
Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta.

The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were some of the
companies established during the same period. Prior to 1912 India had no legislation to regulate insurance
business. In the year 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed. The
Life Insurance Companies Act, 1912 made it necessary that the premium rate tables and periodical
valuations of companies should be certified by an actuary. But the Act discriminated between foreign and
Indian companies on many accounts, putting the Indian companies at a disadvantage.
1.2 COMPANY PROFILE:

Life Insurance Corporation has 5 zonal offices, 33 divisional offices and 212 branch offices, apart
from its corporate office in the year 1956. Since life insurance contracts are long term contracts and during
the currency of the policy it requires a variety of services need was felt in the later years to expand the
operations and place a branch office at each district headquarter. Re-organization of Life Insurance
Corporation took place and large numbers of new branch offices were opened. As a result of re-organization
servicing functions were transferred to the branches, and branches were made accounting units. It worked
wonders with the performance of the corporation. It may be seen that from about Rs.200 crores of New
Business in 1957 the corporation crossed Rs.1000 crores only in the year 1969-70, and it took another 10
years for Life Insurance Corporation to cross Rs.2000 crore mark of new business. But with re-organization
happening in the early eighties, by 1985-86, Life Insurance Corporation had already crossed Rs.7000 crore
Sum Assured on new policies.

INVESTOR:

An investor is the common man who makes an investment into one or more categories of assets-equity,
debt securities, real estate, currency, commodity, derivatives such as put and call options, etc. with the
objective of getting the profits in return.

Types of investors:

There are many types of investors who have their own resources, capabilities, and motivations. And you
might prefer one type of investor over another depending on the strategy, capital needs and the company’s
size. In addition to this, the company preferences would change over time, and the progress of the company
would change as well.
In fact, investors are one of the main players in the process of the company, where their level and quality of
involvement would determine the success or failure of the company. This is why it is essential to know
everything about the various types of investors so that you can understand which to choose and how to
approach the right one.

 Personal Investor:
 An investor is a person who allocates financial capital with the expectation of a future return (profit)
or to gain an advantage (interest). Through this allocated capital most of the time the investor
purchases some species of property.

 Angel Investors:
An angel investor (also known as a business angel, informal investor, angel funder, private investor,
or seed investor) is an individual who provides capital for a business or businesses,
including startups, usually in exchange for convertible debt or ownership equity. Angel investors
usually give support to start-ups at the initial moments (where risks of the start-ups failing are
relatively high)

 Venture capitalist:
A venture capitalist (VC) is a private equity investor that provides capital to companies with high
growth potential in exchange for an equity stake. This could be funding startup ventures or
supporting small companies that wish to expand but do not have access to equities markets.

 Others (Peer-To-Peer Lenders):

Peer-to-peer lenders are groups or individuals who provide capital to small business owners. But to
obtain this capital from these types of investors, the owners would need to apply with companies that
are experts in peer-to-peer lending, like the Lending Club or Prosper. As soon as the owner’s
application gets approved by the company, the lenders would then determine if the company were
right for their investment or not.

 Incubators and Accelerators:

Incubators and accelerators are a gateway to various investors. If you get accepted into any incubator
and accelerator programs, you might get somewhere in the range of $10,000 to $120,000 in seed
money to develop your thought and gain traction while profiting from extra information and assets.
Assuming everything is working out in a good way, you will pitch to more prominent investors and
will be instructed with subsidizing sources during their demo days that can assist with taking you to a
higher level. Be prepared to hustle; these programs need you to grow rapidly heading to the next
stage.
  Banks and Financial Institutes:
These aren’t accurate investors like the others on this list; however, they can be a source of capital.
Conventional banks are not sources of capital for new companies and independent ventures. In any
case, as you gain a foothold, they might offer business credit cards and advance loans.

 Corporate Investors:
When big corporations put their resources into a budding business, they have various benefits. This
consists of supporting their development number, diversifying their assets, and distinguishing
between talent and innovation, which can assist them with battling off industry changes and fuel
significant profits. Some corporate investors have assets to put resources into outside new
companies. Many of these investors are launching their accelerators and incubator programs and
building environments for developing these opportunities.

INVESTMENT:

Investment refers to the concept of deferred consumption, which involves purchasing an asset, giving a loan
or keeping funds in a bank account with the aim of generating future returns. Various investment
options are available offering, differing risk-reward trade off.

An understanding of the core concepts and a thorough analysis of the options can help an investor create a
portfolio that maximizes returns while minimizing risk exposure.

INVESTMENT OBJECTIVES:

The main investment objectives are increasing the rate and reducing the risk. Other objectives like safety,
liquidity, Return, Tax savings and hedge against inflation can be considered as subsidiary objectives.

Return-

Investors always expect a good rate of return from their investments. Rate of return could be defined as the
total income the investor receives during the holding period stated as a percentage of the purchasing price at
the beginning of the holding period.

Risk-

Risk of holding securities is related with the probability of actual return becoming less than the expected
return. The word risk is synonymous with the phrase variability of return.
Liquidity-

Marketability of the investment provides liquidity to the investment. The liquidity depends upon the
marketing and trading facility.

Hedge Against Inflation-

Since there is inflation in almost all the economy, the rate of return should ensure a cover against the
inflation. The return rate should be higher than the rate of inflation; otherwise, the investor will have loss in
real terms. Growth stocks would appreciate in their values overtime and provide a protection against
inflation. The return thus earned should assure the safety of the principal amount, regular flow of income
and be a hedge against inflation.

Safety-

The selected investment avenue should be under the legal and regulatory framework. If it is not under the
legal framework, it is difficult to represent the grievances, if any. Approval of the law itself adds a flavour of
safety.

WHY SHOULD YOU INVEST MONEY?

Some people rely on saving rather than investing. However, in a dynamic world, savings may not be
adequate to guarantee continued financial security. Idle money in lockers or even in a bank account may not
serve the purpose. Investments could help beat inflation through capital appreciation. The power of
compounding also assists in wealth creation. Investing is further helpful in meeting future goals such as
purchasing a house, going on a foreign vacation, or planning your retirement.

TYPES OF INVESTMENT OPTIONS:

Before start investing, it is important to have proper knowledge of different investment plans. As most of the
investors invest based on their risk level (Low, medium, and high risk), let’s look at the type of investment
options in detail.

Low-risk investments:
Low-risk investments come with a certain amount of consistency. This can be reassuring for investors who
have a tough time stomaching market volatility, but there is one caveat: Unlike high-risk investments, you're
less likely to score big financial returns. Still, safer assets can help diversify your portfolio and hedge overall
investment risk. That's important if your portfolio consists solely of high-risk assets, you're more vulnerable
to losses.
Below are some examples of low-risk investments. Bonds, Savings account, Money market accounts,
Certificate of Deposits.

Medium-risk investments:
These investment plans include a certain risk percentage but also pay a higher return to the investors.
Medium-risk investment options are best suited for investors with a medium-risk appetite, who want to
gain relatively higher returns and a regular flow of income compared to fixed-income securities.
Balanced mutual funds, debt funds, and index funds fall under this category.

High-risk investments:
High-risk investments can result in a potential pay out, but no one can predict which investments will soar
and which will end up underperforming. Be that as it may, high-risk investments like stocks play a key role
in long-term financial planning. Whether they're right for you depends on your risk tolerance, financial
situation, and unique goals. Here are some options to consider. Stocks, Investing in Business, Real-Estate.

VARIOUS INVESTMENTOPTIONS IN INDIA:

 FIXED DEPOSITS
 SAVINGS DEPOSITS
 INSURANCE
 MUTUAL FUNDS
 POST OFFICE - NSS
 SHARES/DEBENTURES
 GOLD/SILVER
 REAL ESTATE
 PUBLIC PROVIDENT FUND
 PENSIONSCHEME

Fixed Deposits:

Fixed Deposits are one of the most popular ways to save money. They are a safe investment, offer good
returns, and are easy to open.
In a Fixed Deposit, you put a lump sum in your bank for a fixed tenure at an agreed rate of interest. At the
end of the tenure, you receive the amount you have invested plus compound interest they are called as Term
Deposits.

Savings Deposits:

A bank deposit usually of an individual or a non-profit organization drawing regular interest and payable on
30 days’ notice.

Insurance:

It is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate
another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily
used to hedge against the risk of a contingent or uncertain loss.

Mutual Funds:

A mutual fund is a pool of money managed by a professional Fund Manager. It is a trust that collects money
from several investors who share a common investment objective and invests the same in equities, bonds,
money market instruments and/or other securities.

Post office - NSS:

NSS is a Post Office savings product created or sponsored by a government and operated through a
licensed financial institution or other entity. The National Savings Scheme has pre-determined
eligibility criteria and offers different features and benefits. Therefore, it is recommended to know
more about the system before you invest your hard-earned savings into them.

Shares/Debentures:
Share is a part or portion of a larger amount which is divided among several people, or to which a number of
people contribute. Debenture is a marketable security that businesses can issue to obtain long-term financing
without needing to put up collateral or dilute their equity. A debenture is a type of long-term business debt
not secured by any collateral.
 Gold/Silver:
It most often occurs as a native metal, and it is also considered as an investment in the culture of India, and it
is also considered as a stock in the financial market.

Real Estate:

One of the fastest-growing sectors in India is real estate, which holds great prospects in different sectors
such as retail, housing, manufacturing, commercial, hospitality and much more. Buying a flat or plot is the
best decision amongst the investment options available in India. The risk is very low because the rate of the
property increases within 6 months. Real estate investment works as an asset, which is considered as one of
the best investment plans with high returns over a long-term period.

Public Provident Fund:

Public Provident Fund scheme is one of the most popular long-term saving-cum-investment products,
mainly due to its combination of safety, returns and tax savings.

Pension Scheme:

National Pension System (NPS) is a voluntary, defined contribution retirement savings scheme designed to
enable the subscribers to make optimum decisions regarding their future through systematic savings during

their working life. NPS seeks to inculcate the habit of saving for retirement amongst the citizens.
 HYPOTHESIS OF THE STUDY

H1: There is a significant relation between Investors district and the investors preferred investment avenue.

H2: There is a significant relation between Annual income of the investor and investor preferred investment
avenue.

H3: There is a significant relation between Income contribution to the investment and investor preferred
investment avenue.

H4: There is a significant relation between Investment risk category and investor preferred investment
avenue.

H5: There is a significant relation between Investors awareness and investors preferred investment avenue.

H6: There is a significant relation between Return on investment and investors preferred investment avenue.

H7: There is a significant relation between Criteria for choosing the investment and investor preferred
investment avenue.

H8: There is a significant relation between Tenure of the investment and investors preferred investment
avenue.
 RESEARCH METHODOLOGY

RESEARCH DESIGN:

This study is based on the sample survey method. This study mainly assesses the investors level of
awareness of various investment avenues and also to know the perceived investors’ opinion and to measure
investor’s attitude towards various investment alternatives. The research provides the knowledge and
information to solve the problems and to meet the decision-making challenges.

STATEMENT OF PROBLEM:

In our country, individuals tend to invest more in various investment alternatives with low risk and return
which has resulted in lower allocation of capital to the required sectors of our economy. In addition to this,
the return on traditional investments is less and risk is also very less. The research attempts to know the
preference of investors, percentage of savings, risk appetite and significant demographic factors that affects
investment decisions. The study will help us to know the awareness and exposure of investors on various
investment avenues available.

NEED OF THE STUDY

 Understanding Investor Preferences: The study helps researchers, financial institutions, and
businesses gain a deeper understanding of investors' preferences, risk tolerance, and investment
goals. It can shed light on the factors that drive investment decisions, such as financial returns, risk
appetite, time horizon, and personal beliefs.

 Market Analysis: By studying investors' perceptions, researchers can analyze market trends and
identify emerging investment opportunities. This information can be useful for financial institutions,
investment advisors, and businesses to tailor their offerings to meet investors' needs and align their
strategies with market demand.
  Product Development: The study can inform the development of new investment products or the
improvement of existing ones. By understanding investors' perceptions, financial institutions can
design products that address specific preferences or cater to underserved segments of the market.
This can lead to better investment options and increased customer satisfaction.

 Investor Education: The study can contribute to investor education and awareness campaigns. By
identifying knowledge gaps or misconceptions, researchers can develop educational materials,
seminars, or workshops to empower investors with accurate information and improve their decision-
making capabilities. This can ultimately lead to more informed and confident investors.

 Overall, conducting a study on investors' perceptions of various investments provides valuable

insights into investor behavior, market dynamics, and opportunities for innovation. It can inform
product development, risk management strategies, investor education initiatives, and policy decisions
to create a more efficient and investor-friendly investment landscape.

SCOPE OF THE STUDY

The scope of a study on investors' perceptions towards various investments can encompass a wide range of
factors and dimensions. Here are some key aspects that can be included within the scope:

 Investment Types: The study can examine investors' perceptions towards different types of
investments, such as stocks, bonds, mutual funds, real estate, commodities, cryptocurrencies, or
alternative investments like venture capital or private equity. It can explore how investors perceive
the risk-return profiles, liquidity, stability, and growth potential of these different investment options.

 Risk Perception: The scope can include investigating how investors perceive and assess risks
associated with various investments. This involves understanding investors' risk tolerance levels,
 their perception of different types of risks (e.g., market risk, credit risk, inflation risk), and their
willingness to take on risks for potential returns

 Investor Behavior and Decision-Making: The scope can include investigating the impact of investors'
perceptions on their investment behavior and decision-making processes. This involves
understanding how perceptions translate into investment choices, portfolio diversification strategies,
investment timing, and reactions to market fluctuations.

 Investor Education and Awareness: The study can examine investors' level of knowledge,
understanding, and awareness of various investment options. It can assess the effectiveness of
investor education initiatives and identify areas where improvements are needed to enhance
investors' understanding of different investment opportunities and associated risks.

OBJECTIVES OF THE STUDY

The objectives of a study on investors' perceptions towards various investments can vary depending
on the specific research goals and context. However, here are some common objectives that
researchers might pursue:

1) To determine the behaviour/perception of the investors.

2) To determine the awareness of the stock market among the people.

3) To know how many people are investing in the stock market.

 Also, to analyse the impact of various factors such as District of the investor, Annual income of the
investor, Income Contribution for the investment, Risk category of the investment, Investors
Awareness, Return of the investment, Criteria for choosing the investment, Tenure of the investment
and Investors preferred investment avenue.

METHODOLOGY OF THE STUDY

The research methodology of the study covers the following aspects.

Data Collection: The data of the study is collected from the following sources.

1. Primary Data: Survey method used for gathering primary data. The information has been collected
through the questionnaire.

2. Secondary Data: Data is collected from magazines, journals, newspapers, Internet so on.

SAMPLE PLAN:

 Sample unit: The sample units selected for the study are from Krishna and Guntur Districts.

 Sample size: The sample size is 150.

 Sampling technique: Convenience sampling technique is used for collecting data from investors.

TOOLS FOR DATA COLLECTION: Questionnaire

STATISTICAL TOOS USED FOR ANALYSIS: NA

REGRESSION ANALYSIS: NA

LIMITATIONS OF THE STUDY:

 The lack of knowledge of investors about the instruments can be major limitation.
 The lack of information sources for the analysis part.
 The information can be biased due to use of questionnaire.
 The Researcher can concentrate only in Indian Investors.
 The Researcher can concentrate only the Indian Investment Avenues.
 Some of the respondents feel hesitated to reveal the personal investment details.
 Some of the respondents are not interested in answering the questionnaire, because of an Interruption of
Works.
INDUSTRY PROFILE
Components of Indian Financial System

There are four main components of the Indian Financial System. This includes:

1. Financial Institutions
2. Financial Markets
3. Financial Instruments
4. Financial Services
1. Financial Institutions

The Financial Institutions act as a mediator between the investor and the borrower. The investor’s savings
are mobilized either directly or indirectly via the Financial Markets.

The main functions of the Financial Institutions are as follows:

 A short-term liability can be converted into a long term investment

 It helps in conversion of a risky investment into a risk-free investment.

 Also acts as a medium of convenience denomination, which means, it can match a small deposit with
large loans and a large deposit with small loans.

The best example of a Financial Institution is a Bank. People with surplus amounts of money make savings
in their accounts, and people in dire need of money take loans. The bank acts as an intermediate between the
two.

The financial institutions can further be divided into two types:

 Banking Institutions or Depository Institutions – This includes banks and other credit unions
which collect money from the public against interest provided on the deposits made and lend that
money to the ones in need.

 Non-Banking Institutions or Non-Depository Institutions – Insurance, mutual funds and

brokerage companies fall under this category. They cannot ask for monetary deposits but sell
financial products to their customers.

Further, Financial Institutions can be classified into three categories:

 Regulatory – Institutes that regulate the financial markets like RBI, IRDA, SEBI, etc.

 Intermediates – Commercial banks which provide loans and other financial assistance such as SBI,
BOB, PNB, etc.

 Non-Intermediates – Institutions that provide financial aid to corporate customers. It includes

NABARD, SIBDI, etc.
2. Financial Markets

The marketplace where buyers and sellers interact with each other and participate in the trading of money,
bonds, shares and other assets is called a financial market.

The financial market can be further divided into four types:

i. Capital Market – Designed to finance the long-term investment, the Capital market deals with
transactions which are taking place in the market for over a year. The capital market can further
be divided into three types:

(a)Corporate Securities Market

(b)Government Securities Market

(c)Long Term Loan Market

 Call Money – When a loan is granted for one day and is repaid on the second day, it is called call
money. No collateral securities are required for this kind of transaction.

 Notice Money – When a loan is granted for more than a day and for less than 14 days, it is called
notice money. No collateral securities are required for this kind of transaction.

 Term Money – When the maturity period of a deposit is beyond 14 days, it is called term money.

 Treasury Bills – Also known as T-Bills, these are Government bonds or debt securities with
maturity of less than a year. Buying a T-Bill means lending money to the Government.

 Certificate of Deposits – It is a dematerialized form (Electronically generated) for funds deposited

in the bank for a specific period.

 Commercial Paper – It is an unsecured short-term debt instrument issued by corporations.

ii. Money Market – Mostly dominated by Government, Banks and other Large Institutions, the
type of market is authorized for small-term investments only. It is a wholesale debt market which
works on low-risk and highly liquid instruments. The money market can further be divided into
two types:

(a) Organized Money Market

(b) Unorganized Money Market

 Foreign exchange Market – One of the most developed markets across the world, the foreign
exchange market, deals with the requirements related to multi-currency. The transfer of funds in this
market takes place based on the foreign currency rate.

 Credit Market – A market where short-term and long-term loans are granted to individuals or
Organizations by various banks and Financial and Non-Financial Institutions is called Credit Market
3. Financial Instruments:

This is an important component of financial system. The products which are traded in a financial market are
financial assets, securities, or other types of financial instruments. There are a wide range of securities in the
markets since the needs of investors and credit seekers are different. They indicate a claim on the settlement
of principal down the road or payment of a regular amount by means of interest or dividend.

some of the financial instruments are:

Equity shares, Mutual funds, Debt securities, Derivatives, Bonds, Preference shares etc.
4. Financial Services

Services provided by Asset Management and Liability Management Companies. They help to get the
required funds and also make sure that they are efficiently invested.

The financial services in India include:

 Banking Services – Any small or big service provided by banks like granting a loan, depositing
money, issuing debit/credit cards, opening accounts, etc.

 Insurance Services – Services like issuing of insurance, selling policies, insurance undertaking and
brokerages, etc. are all a part of the Insurance services.

 Investment Services – It mostly includes asset management.

 Foreign Exchange Services – Exchange of currency, foreign exchange, etc. are a part of the foreign
exchange services.

The main aim of the financial services is to assist a person with selling, borrowing, or purchasing securities,
allowing payments and settlements and lending, and investing.
DATA ANALYSIS AND INTERPRETATION
1. INVESTOR DISTRICT AND INVESTOR PREFERENCE

Unstandardized Standardized
Coefficients Coefficients
MODEL T Sig.
B Std. Beta
Error

(Constant) .857 1.468 .584 .560

Investor district .221 .369 .044 .600 .550

INTERPRETATION:

P = 0.05
Here the P value 0.550 is Greater than 0.05 so we consider that , There is an Insignificant relation between
Investors district and the Investor preferred investment avenue.

And also, there is a Positive association between the Investor district and Investor preferred investment
avenue.

2. ANNUAL INCOME OF THE INVESTOR AND INVESTOR PREFERRED INVESTMENT

AVENUE.

Unstandardized Standardized
Coefficients Coefficients
MODEL T Sig.
B Std. Beta
Error

(Constant) .857 1.468 .584 .560

Annual income of the investor .156 .200 .059 .781 .436

INTERPRETATION:

P = 0.05

Here the P value 0.436 is Greater than 0.05 so we consider that, There is an Insignificant relation between
Annual income of the investor and the Investor preferred investment avenue.

And there is a Positive association between Annual income of the investor and Investors preferred
investment avenue.

3. INCOME CONTRIBUTION FOR THE INVSTMENT AND NVESTOR PREFERRED

INVESTMENT AVENUE.

Unstandardized Standardized
Coefficients Coefficients
MODEL T Sig.
B Std. Beta
Error

(Constant) .857 1.468 .584 .560

Income contribution for the investment .391 .294 .103 1.331 .185

INTERPRETATION:

P = 0.05

Here the P value 0.185 is Greater than 0.05 so we consider that, there is an Insignificant relation between
Income contribution for the investment and the Investor preferred investment avenue.

And there is a Positive association between the Income contribution for the investment and Investors
preferred investment avenue.

4. INVESTMENT RISK CATEGOREY AND INVESTORS PREFERRED INVESTMENT

AVENUE.
 Unstandardized Standardized
Coefficients Coefficients
MODEL T Sig.
B Std. Beta
Error

(Constant) .857 1.468 .584 .560

Investment risk category .232 .394 .045 .588 .558

INTERPRETATION:

P= 0.05

Here the P value 0.558 is Greater than 0.05 so we consider that, There is an In significant relation between
the Investment risk category and Investment preferred by the investor.

And there is a Positive association between the Investment risk category and Investors preferred investment
avenue.

5. INVESTORS AWARENESS AND INVESTOR PREFERRED INVESTMENT

AVENUE.

Unstandardized Standardized
Coefficients Coefficients
MODEL T Sig.
B Std. Beta
Error

(Constant) .857 1.468 .584 .560

Investors awareness -.247 .157 -.125 -1.575 .118

INTERPRETATIOIN:

P = 0.05
 Here the P value 0.118 is Greater than 0.05 so we consider that, there is an In significant relation between
the investors awareness and the Investment preferred by the investor.

And there is a Negative association between the Investors Awareness and the Investors preferred investment
avenue.

6. RETURN ON INVESTMENT AND INVESTOR PREFERRED INVESTMENT

AVENUE.

Unstandardized Standardized
Coefficients Coefficients
MODEL T Sig.
B Std. Beta
Error

(Constant) .857 1.468 .584 .560

Return on investment .318 .071 .353 4.459 .000

INTERPRETATION:

P = 0.05
Here the P value 0.00 is Less than 0.05 so we consider that, there is a significant relation between the
source of return and the Investment preferred by the investor
And there is a Positive association between the Return on investment and Investor preferred investment
avenue.

7. CRITERIA FOR INVESTMENT AND INVESTMENT PREFERENCE

Unstandardized Standardized
 MODEL Coefficients Coefficients T Sig.

B Std. Beta
Error

(Constant) .857 1.468 .584 .560

Criteria for the investment -.223 .327 -.054 -.681 .497

INTERPRETATION:

P = 0.05
Here the P value is 0.497 is Greater than 0.05 so we consider that, there is an In significant relation
between the criteria for investment and the Investment preferred by the investor.
And there is a Negative association between the Criteria for investment and Investors preferred investment
avenue.

8. TENURE OF THE INVESTMENT AND INVESTMENT PREFERENCE

Unstandardized Standardized
Coefficients Coefficients
MODEL T Sig.
B Std. Beta
Error

(Constant) .857 1.468 .584 .560

Tenure of the investment .474 .169 .220 2.815 .006

INTERPRETATION:

P = 0.05
 Here the P value 0.006 is Greater than 0.005 so we consider that, There is an In significant relation
between the Tenure of the investment and the Investment preferred by the investor.
And there is a Positive association between the Tenure of the investment and Investors preferred investment
avenue.

REVIEW OF LITERATURE
The review of literature made for this study on perception of investors toward various investment avenues
shows that the major impact is based on the Decision making of all Investors
To justify the need of Present Study, Following Literatures has been Reviewed.

 G.C.Venkataiah & Rao B.K. Surya Prakasha (2018) The main objective of the study is to measure
the impact of demographic factors on the investors choice of investment and to analyze the decision
of the investors towards various investment avenues .The study was conducted in vijayawada city
of Andhra Pradesh with a sample size of 120 respondents. Data was analyzed and interpreted with
the help of statistical tools mean, standard deviation, chi square test ANOVA test. The study
concludes that investments by the investors towards various investment avenues were done with the
expectation of capital appreciation and earnings comprising both short.
term and long-term periods.

 Pradeesh. G (2020) has undertaken the study on Impact on Investors attitude towards Various
Investment Avenues in Thanjavur. The study has been conducted among 1000 investors of
Thanjavur City Corporation, Published in Emperor Journal of Applied Scientific Research.
Convenience Sampling method was adopted. The data was analyzed using ANOVA. The study
concludes that if the younger generation starts investing at the early stage at regular basis, they can
be able to save more money for their future.

 G. Jabez Rajan, M. Rani Subathra, Dr. S. Bulomine Regi (2020), the researcher had made a study on
Investment Scheme and behavior of IT sector Investors with respect to Chennai City, published in
Mukt Shabad Journal the study has been conducted among 150 salaried investors working in IT
sector. Simple Random Sampling was Adopted. The data has been collected and analyzed using
Mean, Median Standard Deviation, Variance, T Test and Chi-Square. The study concludes that the
awareness on investment, based on the gender is nor interrelated and their annual income and
percentage of investment is closely related.
 FINDINGS,
SUGGESTIONS
&
CONCLUSION

FINDINGS
 There is an In-significant relation between Investors district and the investors preferred investment
avenue.

 There is an In-significant relation between Annual income of the investor and investor preferred
investment avenue.

 There is an In-significant relation between Income contribution to the investment and investor
preferred investment avenue.

 There is an In-significant relation between Investment risk category and investor preferred
investment avenue.

 There is an In-significant relation between Investors awareness and investors preferred investment
avenue.

 There is a significant relationship between Return on investment and investor’s preferred investment
avenue.

 There is an In-significant relation between the Criteria for choosing the investment and investor-
preferred investment avenue.

 There is an In-significant relation between the Tenure of the investment and investors preferred
investment avenue.

SUGGESTIONS
 Investors should make the investment with proper planning keeping in mind their investment objectives.
Investors should also consult the brokers or agents to seek information and advice but their decision should
not merely be based on agent's advice rather the decision should be based on their careful investigation. The
investors should select a particular investment option on the basis of their need and risk tolerance. The
investors should diversify their investment portfolio to reduce the risk. Investors should continuously
monitor their investments. The companies should provide all relevant information to the investors.

CONCLUSION

This study confirms the earlier findings with regard to the relationship between age and income level of
the individual investors. The present study has important implications for investment manager. As it
has come out with certain important facets of an individual investor. The individual investors still prefer to
invest in financial product which give risk free returns. Large numbers of portfolio is not good for healthy
investment. The Indian investors are very much aware about the concept of portfolio allotments and risk
and return of the investment. In India, purchase of gold and land are the two most ideal form of investment.
Its carry good return and appreciation. This confirms that that Indian investors even if they are high income,
well educated, salaried, independent are conservative investors prefer to play safe. The investment
product designers can design product which can cater to the investors who are low risk tolerant. Women
are the deciding factor of the family. They followed the mantras „‟Prevention is better than Cure”.
They expect more income but less risk.
 ANNEXURE/QUESTIONNARIE

A Study on Investors Perception towards various Investment Avenues

Dear respondent,
This questionnaire is aimed at understanding your perception about investment and various investment
avenues. Your response will be used only for academic purpose. Thank you for spending your valuable time
filling out this questionnaire.
1. Name of the candidate?

2. Age of the candidate?

3. Education Qualification of the Candidate ?*

4. Occupation of the candidate ?*

5. District of the candidate? *

a) Krishna
b) Guntur

6. What is your Annual family income approximately? *

a) Up to 2,50,000
b) 2,50,000-5,00,000
c) 5,00,000-7,50,000
d) 7,50,000 - 10,00,000
e) More than 10,00,000

7. What kind of Investment do you prefer? *

a) Fixed Deposit
b) Savings Deposit
c) Insurance
d) Mutual Fund
e) Post office-NSC
f) Shares/Debentures
g) Gold/Silver
h) Real Estate
i) Public Provident Fund
j) Pension schemes

8. How much income you will contribute to the investments? *

a) 10%
b) 25%
 c) Above 25%

9. Have you ever invested in any of the investments? *

a) yes
b) No

10. If not, why?

a) Not aware of many investment avenues
b) Higher risk
c) low returns
d) Not for a specific reason

11. In what kind of investment avenue you would like to invest? *

a) Public
b) Private

12. How do you come to know about investment avenues? *

a) Advertisement
b) Peer group
c) Banks
d) Financial Advisors

13. On what basis do you invest in any particular investment avenues? *

a) Technical performance
b) Fundamental analysis

14. What is your preferred tenure to investment in any investment avenue? *

a) Less than 6 months
b) Less than 2 years
c) Less than 5years
d) More than 5 years

15. Have you ever invested in any of the investment avenues other than these types? *
a) Yes
b) No

Thank You