A

PROJECT REPORT
ON

“TO STUDY THE ROLE AND IMPORTANCE OF INVESTMENT

BANKING IN THE FINANCIAL INDUSTRY AND INNOVATION”

SUBMITTED TO

SAVITRIBAI PHULE PUNE UNIVERSITY.

IN PARTIAL FULFILMENT OF THE DEGREE OF

BACHELORS IN BUSINESS ADMINISTRATION (BBA)

IN
LEGAL ASPECTS OF FINANCE
UNDER THE GUIDANCE OF
PROF. PRABHA KUMARI SINGH
SUBMITTED BY
Mr. RUTVIKKUMAR ANIL SINGH
ROLL NO: 86
ACADEMIC YEAR: 2020-2023

DR.D.Y. PATIL ARTS, COMMERCE & SCIENCE COLLEGE

PIMPRI-18, PUNE-411018, MAHARASHTRA, INDIA

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“TO STUDY THE ROLE AND IMPORTANCE OF
INVESTMENT BANKING IN THE FINANCIAL
INDUSTRY AND INNOVATION”

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 INDEX

Sr. No. Particulars Page No.

Chapter 1 Introduction 04 - 07

Chapter 2 Sector Profile 08 – 17

Chapter 3 Literature Review 18 – 19

Chapter 4 Objectives and Scope 20 – 21

Chapter 5 Research Methodology 22 – 25

Chapter 6 Data Analysis and Data Interpretation 26 – 43

Chapter 7 Observations and Findings 44 – 45

Chapter 8 Conclusion 46 – 47

Chapter 9 Suggestions 48 - 53

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 CHAPTER 1

INTRODUCTION

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 INTRODUCTION

1.1 Introduction on Investment Banking:

Investment banking refers to the banking where the banks serves investment services to the
government, corporates and institutions by providing underwriting and merger and
acquisitions and advisory services. Investment banking act as a intermediaries between
investors and corporation. Investment banking is a special segment of banking operation that
helps individuals or organisations raise capital and provide financial consultancy services to
them. They act as intermediaries between security issuers and investors and help new firms
to go public. They act as intermediaries between security issuers and investors and help new
firms to go public. They either buy all the available shares at a price estimated by their
experts and resell them to public or sell shares on behalf of the issuer and take commission
on each share.

Issuing stocks and bonds is one of the primary ways for a company to raise capital. But
executing these transaction requires special expertise, from pricing financial instruments in
a way that will maximize revenues to navigating regulatory requirements. That’s where an
investment bank usually comes into the picture.

In essence, investment banks are a bridge between large enterprises and the investor. Their
primary roles are to advise businesses and governments on how to meet their financial
challenges and to help them procure financing, whether it be from stock offerings, bond
issues, or derivative products.

Taking into account the current investing climate, the bank will recommend the best way
to raise funds. This could entail selling an ownership stake in the company through a stock
offer or borrowing from the public through a bond issue. The investment firm can also help
determine how to price these instruments by utilizing sophisticated financial models.

In the case of a stock offering, its financial analysts will look at a variety of different factors
such as earnings potential and the strength of the management team—to estimate how much
a share of the company is worth. If the client is offering bonds, the bank will look at

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prevailing interest rates for similarly rated businesses to figure out how much it will have
to compensate borrowers.

Investment banks also offer advice in a merger or acquisition scenario. For example, if a
business is looking to purchase a competitor, the bank can advise its management team on
how much the company is worth and how to structure the deal in a way that’s favourable to
the buyer.

Apart from advising and helping raise money for the companies, investment banks perform
other functions as well such as research, trading and sales, asset management, wealth
management, and securitized products.

How often have you heard about large companies or organisations making acquisitions and
merging with other companies by buying off the maximum market shares? You must have
wondered how these companies know when and where to invest such a large amount of
money to reap the maximum benefits! Well, this is where investment banking comes into
play. Any corporation, large or small needs advice before making any kind of investment as
they are putting their earned money as well as reputation on the line. To ensure that the
investment they make is fruitful, they need some advice and guidance from someone who is
an expert in such investments and will guide them through the risks and benefits of the
concerned plan. This individual is called an investment banker. Operations in the financial
field are tricky and they can become even trickier when it comes to large companies,
organisations and Government. This is why the investment banking service has been brought
into action to make investments a little more convenient for such large entities.

Although given by the above example, investment banking may seem like just a service
provided by banks, the term goes way deeper and there are full-fledged investment banks
present to help high income individuals, corporations, organisations and even governments
in their investment planning. This is why to understand the term “investment banking” in a
little more detail, we would need to go through its basics and understand how it works.

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1.2 Need of Investment Banking:

• Investment banks are large financial institutions that help global and local
businesses with capital financing, and also engage in trading.
• They help companies go public, underwrite bond offerings, and are involved in
proprietary trading and investment.
• Investment banks help the broader financial markets and the economy by matching
sellers and investors, therefore adding liquidity to markets.
• The actions of the banks also make financial development more efficient and
promote business growth, which in turn helps the economy.

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 CHAPTER 2

SECTOR PROFILE

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2.1 What is Investment Banking?

• Investment banking is essentially a financial service provided by a finance

company or a banking division to help large multinational corporations in their
investment plans. Along with large companies and organisations, this service also
helps high net worth individuals and governments to raise or create capital. Some of
the important roles that an investment bank plays are to underwrite new securities
for all types of organisations, assist in sales of securities, and to arrange for mergers,
acquisitions and reorganisations.
• Investment banks aim at providing a way to large organisations, corporations and
governments to make large financial transactions and make important financial
decisions with some help. In order to do that the investment banks may often help
companies to issue their IPOs or Initial Public Offerings. When doing so, these
investment banks will sell the shares on the market on behalf of the company.
• In simple terms, you can say that investment banks act as financial advisors to large
companies, organisations and governments. These advisors advise the companies
regarding the sales and trading that takes place between buyers and sellers and assist
them in making large financial deals that take place during activities like acquisitions
and mergers.
• Companies often turn to an individual who will advise them about which investment
will be fruitful for their company and which will cause them to potentially suffer with
losses in the future. This person is an expert who understands the feasibility of large
projects and has a thorough knowledge about investing. This person is called an
investment banker. The investment banker will identify the risks associated with a
said project and convey it to their client before the client can go on to invest in the
project. This goes a long way in saving the client’s time as well as money.

2.2 How does Investment Bank works?

a) Investment banking service is offered by the investment banks that act as an

intermediary between company and investors and primarily deals with shares and
stock exchanges. The investment banking service helps the large companies and
organisations in making and creating a viable plan for investments which involves
the proper pricing of the financial instruments. An investment bank buys most of the
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 shares directly on behalf of the company when the company holds an IPO or Initial
Public Offer.
b) These shares are then sold on the market by the investment bank, which is now acting
as a proxy to the company. By doing so, the investment bank maximises the
company's revenue while also making sure that all the regulatory policies are being
followed. By helping the company to gain maximum profit from this action, the
investment bank also gains profit by marking up on the initial price of shares while
selling it to investors. The investment bank also faces a risk of losing money by
selling the stock at a lesser price if a situation arises in the market where the stock
becomes overvalued.
c) When going to an investor banker for advice, a company should consider its needs
to do so and weigh out all its options first. There are certain important factors that
the company needs to consider before visiting an investment bank. These factors
include the size of the capital that is being raised and the competition in the market.
Once the company is clear in these aspects it can take the help of the investment
banker to research new ventures to invest in.

2.3 Benefits of Investment Banking:

As we already discussed above, there are a lot of ways in which investment banking helps
large companies to take important financial decisions and ensure that they reap maximum
profits. This is why investment banks are a popular financial institution among such
companies and even governments. In that sense, we can say that investment banking and
investment banks have a number of benefits which can be fruitfully used by the large
organisations and companies. Few of these benefits of taking assistance of an investment
bank are as follows:

• Investment banks handle their clients efficiently and assist them with the necessary
knowledge about the risks and benefits of investing their money in other companies
or organizations.
• These banks act as an intermediary between the company and the investor by
assuring a rising of financial capital through assisting in important financial
investments like acquisitions or mergers.

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 • It undergoes thorough investigation of the deal and project that is to be made by its
client in order to assure that the client’s money goes in a safe place which will help
to minimize the risks associated with the said deal or project.

2.4 Parameters of investing in any industry:

Investment banks analyze the capital requirement, target market, market conditions, investor
perception and confidence, and economic and political conditions.

Investment Banking Services:

Investment banking products or services are a distinctive factor for investment banks. An
investment bank may choose to carve a niche in a specific service. Alternatively, an
investment bank may cater to each financial requirement of the client.

These services include the following.

a) Underwriting:
It refers to raising capital from the direct market and is a primary service
provided by investment banks. Underwriting includes initial public offerings
and debt financing.
Investment banks analyse the capital requirement, target market, market conditions, investor
perception and confidence, and economic and political conditions. It structures and launches
the public issue based on the evaluation. In most public issues, the investment bank also
commits to invest a fixed percentage of capital in case of under subscription.

b) Transaction Advisory:

It includes facilitating mergers, acquisitions, leveraged buyouts and consolidation and

is at the heart of investment banking. These transactions include two or more financial
entities, each employing an investment bank to derive maximum value for its
stakeholders.

The primary role of an investment bank is to evaluate the feasibility of the transaction and
assist in the negotiation between the parties. The investment bank charges a fee or a fixed
percentage of the deal value in exchange.

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 c) Sales & Trading:
Investment banks also provide sales and stock placement services. It handles
investment and broking for corporates and high-net-worth clients.
The investment bank approaches clients with profitable ideas. The product may be equity,
debt, commodities, derivatives, or a mix. The onus to evaluate the profitability and conduct
due diligence lies with the investment bank. In exchange, the bank charges a commission or
brokerage on the transaction.

2.5 INITIAL PUBLIC OFFERINGS (IPO):

An initial public offering (IPO) refers to the process of offering shares of a private
corporation to the public in a new stock issuance for the first time. An IPO allows a
company to raise equity capital from public investors.

The transition from a private to a public company can be an important time for private
investors to fully realize gains from their investment as it typically includes a share premium
for current private investors. Meanwhile, it also allows public investors to participate in the
offering.

KEY TAKEAWAYS:

• An initial public offering (IPO) refers to the process of offering shares of a private
corporation to the public in a new stock issuance.
• Companies must meet requirements by exchanges and the Securities and Exchange
Commission (SEC) to hold an IPO.
• IPOs provide companies with an opportunity to obtain capital by offering shares
through the primary market.
• Companies hire investment banks to market, gauge demand, set the IPO price and
date, and more.
• An IPO can be seen as an exit strategy for the company’s founders and early
investors, realizing the full profit from their private investment.

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2.5.1 How an IPO works:

• Before an IPO, a company is considered private. As a pre-IPO private company, the

business has grown with a relatively small number of shareholders including early
investors like the founders, family, and friends along with professional investors
such as venture capitalists or angel investors.
• An IPO is a big step for a company as it provides the company with access to raising
a lot of money. This gives the company a greater ability to grow and expand. The
increased transparency and share listing credibility can also be a factor in helping it
obtain better terms when seeking borrowed funds as well.
• When a company reaches a stage in its growth process where it believes it is mature
enough for the rigors of SEC regulations along with the benefits and responsibilities
to public shareholders, it will begin to advertise its interest in going public.
• Typically, this stage of growth will occur when a company has reached a private
valuation of approximately $1 billion, also known as unicorn status. However,
private companies at various valuations with strong fundamentals and proven
profitability potential can also qualify for an IPO, depending on the market
competition and their ability to meet listing requirements.
• IPO shares of a company are priced through underwriting due diligence. When a
company goes public, the previously owned private share ownership converts to
public ownership, and the existing private shareholders’ shares become worth the
public trading price. Share underwriting can also include special provisions for
private to public share ownership.
• Meanwhile, the public market opens up a huge opportunity for millions of investors
to buy shares in the company and contribute capital to a company’s shareholder’s
equity. The public consists of any individual or institutional investor who is
interested in investing in the company.
• Overall, the number of shares the company sells and the price for which shares sell
are the generating factors for the company’s new shareholders' equity value.
Shareholders' equity still represents shares owned by investors when it is both

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 private and public, but with an IPO, the shareholders' equity increases significantly
with cash from the primary issuance.

2.5.2 Process of an IPO:

Step 1: Hiring of An Underwriter or Investment Bank

To start the initial public offering process, the company will take the help of financial
experts, like investment banks. The underwriters assure the company about the capital being
raised and act as intermediaries between the company and its investors. The experts will also
study the crucial financial parameters of the company and sign an underwriting agreement.
The underwriting agreement will usually have the following components:

Step 2: Registration For IPO

This IPO step involves the preparation of a registration statement along with the draft
prospectus, also known as Red Herring Prospectus (RHP). Submission of RHP is mandatory,
as per the Companies Act. This document comprises all the compulsory disclosures as per
the SEBI and Companies Act. Here’s a look at the key components of RHP:

This document has to be submitted to the registrar of companies, three days before the offer
opens to the public for bidding. Alongside, the submitted registration statement has to be
compliant with the SEC rules. Post-submission, the company can make an application for an
IPO to SEBI.

Step 3: Verification by SEBI:

Market regulator, SEBI then verifies the disclosure of facts by the company. If the
application is approved, the company can announce a date for its IPO.

Step 4: Making an Application to The Stock Exchange

The company now has to make an application to the stock exchange for floating its initial
issue.

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Step 5: Creating a Buzz by Roadshows

Before an IPO opens to the public, the company endeavours to create a buzz in the market
by roadshows. Over a period of two weeks, the executives and staff of the company will
advertise the impending IPO across the country. This is basically a marketing and advertising
tactic to attract potential investors. The key highlights of the company are shared with
various people, including business analysts and fund managers. The executives adopt various
user-friendly measures, like question-and-answer sessions, multimedia presentations, group
meetings, online virtual roadshows, and so on.

Step 6: Pricing of IPO

The company can now initiate pricing of IPO either through Fixed Price IPO or by Book
Binding Offering. In the case of Fixed Price Offering, the price of the company’s stocks is
announced in advance. In the event of Book Binding Offering, a price range of 20% is
announced, following which investors can place their bids within the price bracket. For the
bidding process, the investors have to place their bids as per the company’s quoted Lot price,
which is the minimum number of shares to be purchased. Alongside, the company also
provides for IPO Floor Price, which is the minimum bid price and IPO Cap Price, which is
the highest bidding price. The booking is typically open from three to five working days and
investors can avail the opportunity of revising their bids within the stipulated time. After
completion of the bidding process, the company will determine the Cut-Off price, which is
the final price at which the issue will be sold.

Step 7: Allotment of Shares

Once the IPO price is finalised, the company along with the underwriters will determine the
number of shares to be allotted to each investor. In the case of over-subscription, partial
allotments will be made. The IPO stocks are usually allotted to the bidders within 10 working
days of the last bidding date.

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Here is the flow chart for the process of an IPO:

2.6Various Investing Schemes:

a) Stocks:
A stock, also known as equity, is a security that represents the ownership of a fraction
of the issuing corporation. Units of stock are called "shares" which entitles the owner

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 to a proportion of the corporation's assets and profits equal to how much stock they
own.

b) Fixed Deposits:
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. FDs are also called term deposits.
c) Mutual Funds:
A mutual fund is a pool of money managed by a professional Fund Manager. It is a
trust that collects money from a number of investors who share a common investment
objective and invests the same in equities, bonds, money market instruments and/or
other securities.
d) Public Provident Fund:
The PPF account or 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.
e) Real Estate:
Real estate is considered real property that includes land and anything permanently
attached to it or built on it, whether natural or man-made. There are five main
categories of real estate which include residential, commercial, industrial, raw land,
and special use.
f) Gold Bonds:
SGBs are government securities denominated in grams of gold. They are substitutes
for holding physical gold. Investors have to pay the issue price in cash and the bonds
will be redeemed in cash on maturity. The Bond is issued by Reserve Bank on behalf
of Government of India.
There are still many schemes of investing ….

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 CHAPTER 3

LITERATURE REVIEW

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3.1 LITERATURE REVIEW

According to GLORIA HAMILTON (2009) Generally investment banks collect large amount of
funds in form of deposits and invest in those or the sectors where the demand or capital
requirement is high. As per the market condition, hopefully it gives maximum returns to their
investors. The difference between those rates is the income of the investment banks. One of the
profit earning sources of investment bank is foreign exchange market. The main job of investment
banks is to advise corporations about funds and raising money. Some do this by selling the
company’s equity and others do so by offering advice about debt issues.

According to MARK KY MARK (2014) He majorly focused on the investors section, he talked
from the view point of investors, it is very difficult for them to compare which investment would
be beneficial. Unfortunately, after the financial crisis of 2008 and the global crisis of 2009,
investors are becoming more cautious towards investments, especially in high-risk financial
products. According to HEENA KOTHARI She focused on the youth section for the investment. If
the younger generation would start investing from today time, then they will be able to save more
for the future. Facts revealed in this study highlight the perception of varied age group investors
who desire to invest in different avenues which give high returns and growth prospect.

According to RAJARAJEN VANJEKO (2019) the upcoming market condition shows the positive
response towards the investment banking. It also shows that investor’s future preferences, his major
area of study is the rural sector where huge amount of development is needed. The growth of the
economy is dependent on the growth of the rural market in the country. Timely and affordable
financial support helps people sustain and grow their livelihoods because lack of financial help
stunts the growth of many rural micro-enterprises and force people to migrate to urban areas in
search of jobs.

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 CHAPTER 4

OBJECTIVES AND SCOPE

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4.1 OBJECTIVES OF THE PROJECT:

• To study the role of investment banks.

• To know the parameters of investing in any industry.

• To study about an IPO (Initial Public Offering)

• To know the various investing schemes.

• To know the process of getting funds from investment banks.

4.2 SCOPE OF THE PROJECT:

a) Investment banking is a truly up and coming career option that is becoming growingly
popular among the ambitious youth in India. An investment banker, simply put, is someone
who helps their client (often a bank or a financial firm) invest their money in a way that will
help them yield the highest possible returns.

b) A huge reason for the growth of this career over the past few years in globalization which
has led to a booming financial sector. India is a rapidly growing economy with numerous
multi-national companies setting up shop around the country. This has opened up several
available positions for students who specialize in investment banking.

c) The future will likely require that investment banks shed non-core assets and redesign
their service delivery around a connected flow model—moving capacity and processes
among various geographies and ecosystem partners—and optimize the use of financial
technology, data, and analytics to generate differentiated insight.

d) Investment bank is very vast concept which leads to betterment and upliftment of the
society.

e) Investment banks helps us to explore our ideas with a better vision of learning and
earnings.

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 CHAPTER 5

RESEARCH METHODOLOGY

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 RESEARCH METHODOLOGY

5.1 Design of Research:

The research will be explanatory in nature. A group of people is considered for this study
related to investment bank. I will try to explore about the various investment banks schemes
which will make a difference in the consumer behavior. Effort will be made to throw light
on most of the parameters/factors which have either indirect or direct effect on the behavior
of the investors. I will also study the various factors preventing new investors to invest and
grow into their lives and career.

5.2 Sampling Plan:

The study aimed to include the investors investing in mutual funds in PUNE region for my
research, to study their attitude towards the Investment Banking sector for the growth and
innovation accordingly.

5.3 Sample Size:

A sample size of 31 respondents was taken into consideration through google forms for my
research project, because it is not possible to cover the responses across the globe in the
given time period. So, the sample size is taken into consideration. The sample size will be
taken in the form of strata based on Age, Gender and Income groups.

5.4 Sampling Technique:

The sampling technique will be based on probability more specifically the random
convenient and judge-mental sampling will be used. As in the probabilistic sampling they
select a particular group of population for observation with known probabilities so that
statistically sound assumptions are supported from the sample to entire population so that
we can have positive probability of being selected into the sample.

So, I will go for the stratified random sampling as we are interested to study the role of
investment banks in the financial industry for innovation so, we will make the strata
accordingly on the basis of age, occupation, income rage, gender and from each strata we
will go for random sampling.

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5.5 Source of Data:

I will use Primary and Secondary both the sources for my research that is structured
questionnaire for primary research and as we know the topic is related to investment banking
so, many researchers have already done research on this topic, but to add something more
additionally I will take help with the secondary data also to make my research more
informative and good so, I will take help from both the sources i.e., primary and secondary
data.

My method of collecting the data is from the questionnaire that will be calculated through
the responses given by the respondents from the sample, it will be structured questionnaire.

5.5.1 Primary Data:

Primary data is the data that is collected for the first time through personal experiences or
evidence, particularly for research. It is also described as raw data or first-hand information.
The mode of assembling the information is costly, as the analysis is done by an agency or
an external organisation, and needs human resources and investment. The investigator
supervises and controls the data collection process directly.

The data is mostly collected through observations, physical testing, mailed questionnaires,
surveys, personal interviews, telephonic interviews, case studies, and focus groups, etc.

5.5.2 Secondary Data:

Secondary data is a second-hand data that is already collected and recorded by some
researchers for their purpose, and not for the current research problem. It is accessible in the
form of data collected from different sources such as government publications, censuses,
internal records of the organisation, books, journal articles, websites and reports, etc.

This method of gathering data is affordable, readily available, and saves cost and time.
However, the one disadvantage is that the information assembled is for some other purpose
and may not meet the present research purpose or may not be accurate.

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5.6 Tools and Techniques:
As we know no study will be successfully completed without proper tools & techniques, if
we use it proper then the outcomes would come appropriate and this is also the same case
with my research project. For the better presentation and right explanation, I used tools of
statistics and computer for analysis which will give a clear clarification regarding to it.
And it will give me a frequent data using it which will help me to complete my project and
I am feeling very thankful using those tools because they helped me a lot.
Basic tools which I used for my project are as follows:
1] Pie Charts
2] Bar Graphs
These two of the methods helped me a lot for data analysis and interpretation which is
done on the next page.

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 CHAPTER 6
DATA ANALYSIS AND DATA
INTERPRETATION

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 DATA ANALYSIS AND DATA INTERPRETATION

Question 1:
What is your Gender?

Sr. No Particulars Respondents Percentage

1. Male 23 74.2%
2. Female 08 25.8%
3. Other 00 0
Total 31 100%

Interpretation:
According to my research above chart and table defines us about their Gender that 74.2% of
the respondents are Male, 25.8% of the respondents are Female and other has none of the
respondents to my research.

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Question 2:
What is your Age?

Sr. No Particulars Respondents Percentage

01. 16-25 24 77.4%
02. 26-35 06 19.4%
03. 36-45 01 3.2%
04. Above 45 00 0
Total 31 100%

Interpretation:

According to my research above chart and table defines us the age groups that 77.4% of the
respondents are (16-25), 19.4% of the respondents are (26-35), 3.2% of the respondents are
(36-45) and Above 45 has none of the respondents to my research.

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Question 3:
What is your Marital Status?

Sr. No Particulars Respondents Percentage

01. Married 06 19.4%
02. Unmarried 25 80.6%
Total 31 100%

Interpretation:

According to my research above chart and table defines us that 19.4% of the respondents are
Married and 80.6% of the respondents are Unmarried to my research.

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Question 4:
What is your Qualification?

Sr. No Particulars Respondents Percentage

01. SSC 01 3.2%
02. HSC 11 35.5%
03. Graduate 16 51.6%
04. Post Graduate 01 3.2%
05. Other 02 6.5%
Total 31 100%

Interpretation:

According to my research above chart and table defines us about their Qualifications that
3.2% of the respondents are SSC, 35.5% of the respondents are HSC, 51.6% of the
respondents are Graduate, 3.2% of the respondents are Post Graduate and other has 6.5% of
the respondents to my research.

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Question 5:

What is your Occupation?

Sr. No Particulars Respondents Percentage

01 Businessman 03 9.7%
02 Employee 07 22.6%
03 Housewife 01 3.2%
04 Student 20 64.5%
05 Other 00 0
Total 31 100%

Interpretation:

According to my research above chart and table defines us about their Occupation that 9.7%
of the respondents are Businessman, 22.6% of the respondents are Employee, 3.2% of the
respondents are Housewife, 64.5% of the respondents are Students and other has none of the
respondents to my research.

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Question 6:
What is your annual income?

Sr. No Particulars Respondents Percentage

01 Less than 1.5 Lakhs 17 54.8%
02 1.5 Lakhs to 3Lakhs 04 12.9%
03 3 Lakhs to 5 Lakhs 05 16.1%
04 5 Lakhs to 10 Lakhs 05 16.1%
05 More than 10 Lakhs 00 0
Total 31 100%

Interpretation:

According to my research above chart and table defines us about their Annual Income that
54.8% of the respondents are having (less than 1.5 lakhs), 12.9% of the respondents lie
between (1.5 lakhs to 3 lakhs), 16.1% of the respondents lie between (3 lakhs to 5 lakhs)
,16.1% of the respondents lie between (5 lakhs to 10 lakhs) and more than 10 lakhs has none
of the respondents to my research.

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Question 7:

Do you know what actually Investment Banks are?

Sr. No Particulars Respondents Percentage

01 Yes 21 67.7%
02 No 08 25.8%
03 May be 02 6.5%
Total 31 100%

Interpretation:

According to my research above chart and table defines us that 67.7% of the respondents say
‘Yes’, 25.8% of the respondents say ‘No’ and 6.5% of the respondents say ‘May be’ to my
research.

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Question 8:

Do you know what IPO is?

Sr. No Particulars Respondents Percentage

01 Yes 24 77.4%

02 No 04 12.9%

03 May be 03 9.7%

Total 31 100%

Interpretation:

According to my research above chart and table defines us that 77.4% of the respondents say
‘Yes’, 12.9% of the respondents say ‘No’ and 9.7% of the respondents say ‘May be’ to my
research.

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Question 9:
According to you, which amongst the following is the safest investment for you?

Sr. No Particulars Respondents Percentage

01 Mutual Funds 18 58.1%

02 Stock Market 13 41.9%

03 Bank Deposit 13 41.9%

04 Post Office 08 25.8%

Schemes

05 Other 02 6.5%

Total 31 100%

Interpretation:

According to my research above Bar Graph and Table defines us the safest investment of the
respondents that 58.1% of the respondents say Mutual Funds, 41.9% of the respondents say
Stock Market, 41.9% of the respondents say Bank Deposit, 25.8% of the respondents say
Post Office Schemes and other has 6.5% of the respondents to my research.

35
Question 10:
Are you aware about different types of investment schemes?

Sr. No Particulars Respondents Percentage

01 Yes 22 71%

02 No 05 16.1%

03 May be 04 12.9%

Total 31 100%

Interpretation:
According to my research above chart and table defines us that 71% of the respondents say
‘Yes’, 16.1% of the respondents say ‘No’ and 12.9% of the respondents say ‘May be’ to my
research.

36
Question 11:
In this Highly volatile market, do you think Investment Banks are a destination to
any firm or organization?

Sr. No Particulars Respondents Percentage

01 Strongly Agree 02 6.5%

02 Agree 12 38.7%

03 Neutral 13 41.9%

04 Disagree 03 9.7%

05 Strongly Disagree 01 3.2%

Total 31 100%

Interpretation:

According to my research above chart and table defines us that 6.5% of the respondents are
Strongly Agree, 38.7% of the respondents are Agree, 41.9% of the respondents are Neutral,
9.7% of the respondents are Disagree and 3.2% of the respondents are Strongly Disagree to
my research.

37
Question 12:

Are you aware that how Investment Banks help organizations?

Sr. No Particulars Respondents Percentage

01 Yes 20 64.5%
02 No 11 35.5%
Total 31 100%

Interpretation:
According to my research above chart and table defines us that 64.5% of the respondents say
‘Yes’ and 35.5% of the respondents say ‘No’ to my research.

38
Question 13:
According to you does Investment Banks gives us the opportunity to become an
expert at early stage?

Sr. No Particulars Respondents Percentage

01 Strongly Agree 00 0%
02 Agree 14 45.2%
03 Neutral 16 51.6%
04 Disagree 00 0%
05 Strongly Disagree 01 3.2%
Total 31 100%

Interpretation:
According to my research above chart and table defines us that none of the respondents are
Strongly Agree, 45.2% of the respondents are Agree, 51.6% of the respondents are Neutral,
none of the respondents are Disagree and 3.2% of the respondents are Strongly Disagree to
my research.

39
Question 14:
According to you are Investment Banks really helping for the growth of the
economy?

Sr. No Particulars Respondents Percentage

01 Strongly Agree 06 19.4%
02 Agree 12 38.7%
03 Neutral 11 35.5%
04 Disagree 01 3.2%
05 Strongly Disagree 01 3.2%
Total 31 100%

Interpretation:
According to my research above chart and table defines us that 19.4% of the respondents are
Strongly Agree, 38.7% of the respondents are Agree, 35.5% of the respondents are Neutral,
3.2% of the respondents are Disagree and 3.2% of the respondents are Strongly Disagree to
my research.

40
Question 15:
How would you rate about the experts in the stock market?

Sr. No Particulars Respondents Percentage

01 Excellent 02 6.5%

02 Great 11 35.5%

03 Good 17 54.8%

04 Bad 00 0%

05 Very Bad 01 3.2%

Total 100%

Interpretation:

According to my research above chart and table defines us ratings about the experts that
6.5% of the respondents are Excellent, 35.5% of the respondents are Great, 54.8% of the
respondents are Good, none of the respondents are Bad and 3.2% of the respondents are Very
Bad to my research.

41
Question 16:

From whom would you like to take investment advice?

Sr. No Particulars Respondents Percentage

01 Friends 03 9.7%

02 Internet 11 35.5%

03 Experts 20 64.5%

04 Yourself 16 51.6%

05 Other 00 0%

Total 31 100%

Interpretation:

According to my research above Bar Graph and Table defines us about the investment advice
should be taken from; that 9.7% of the respondents say Friends, 35.5% of the respondents
say Internet, 64.5% of the respondents say Experts, 51.6% of the respondents say Yourself
and none of the respondents say others to my research.

42
Question 17:

How did you come to know about Investment Banking?

Sr. No Particulars Respondents Percentage

01 Newspaper 05 16.1%
02 Television 05 16.1%
03 Internet 27 87.1%
04 Family 11 35.5%
05 Other 04 12.9%
Total 31 100%

Interpretation:
According to my research above Bar Graph and Table defines us about sources of Investment
Banking they came to know with; that 16.1% of the respondents say Newspaper, 16.1% of
the respondents say Television, 87.1% of the respondents say Internet, 35.5% of the
respondents say Family and 12.9% of the respondents say other sources to my research.

43
 CHAPTER 7
OBSERVATIONS AND FINDINGS

44
Observations:

According to the outcomes i.e., responses of the respondents we can say that majority of the
population says that Investment Banks play an important role in their lives for raising capital
and help them for making better decisions.

And according to the report the young generations from the age group (16-25) has the better
knowledge and they are showing eagerness for growth of the society and making new
innovations.

Findings:

According to my research I found that after taking responses randomly through the google
forms it was noted that the people who responded to the questionnaires say Yes investment
banks really help them for capital or funds which helps them to explore their ideas
effectively.

In short, we can say, that investment banks are encouraging for youths to take steps and
become future entrepreneurs and reduce poverty and increase employment.

45
CHAPTER 8
CONCLUSION

46
Conclusion:

According to my research we can conclude that Investment banks has a big scope for
investment banking in India .It is one of the most demanded sector these days .Investment
banking is truly a great career option that is becoming more popular due to increases in the
rate of FDI in India .Investment banking is a kind of rewarding job with rewards and
monetary terms as well as personal and career growth .It is a fast paced job along with good
scope of learning .Investment Banking gives you a pathways to bigger career like
entrepreneurship, wealth management and venture capital. At last, I want to conclude my
paper with this conclusion that there is a great scope of investment banks in nearby future,
moreover youth’s participation is also playing a big role in it, investment banks also provide
funds for the rural development on easy rates.

Hence, we can say that investment banks play a very important role to our success because
without funds we can remain at the back end after having a very good idea to explore

47
 CHAPTER 9
SUGGESTIONS

48
Suggestions:
So, according to my research youths can become more successful
entrepreneurs just the proper guidance and good knowledge should be
delivered so they will help hand in hand to the future generations.
During school days teachers should talk about the successful entrepreneurs
and should give the knowledge of finance from the early age so the particular
child can feel mature at early stage which will help them to become
successful with better exposure

References:
https://www.bajajfinserv.in/complete-guide-investing
https://www.investopedia.com/terms/i/investment-banking.asp
https://byjus.com/commerce/difference-between-primary-data-and-secondary-
data/

49
Annexure:
Questionnaire:
1. What is your Gender?
a) Male
b) Female
c) Other
2. What is your Age?
a) (16-25)
b) (26-35)
c) (36-45)
d) Above 45
3. What is your Marital Status?
a) Married
b) Unmarried
4. What is your Qualification?
a) SSC
b) HSC
c) Graduate
d) Post Graduate
e) Other
5. What is your Occupation?
a) Businessman
b) Employee
c) Housewife
d) Student
e) Other

50
6. What is your annual income?
a) Less than 1.5 Lakhs
b) 1.5 Lakhs to 3 Lakhs
c) 3 Lakhs to 5 Lakhs
d) 5 Lakhs to 10 Lakhs
e) More than 10 Lakhs
7. Do you know what exactly investment banks are?
a) Yes
b) NO
c) May be
8. Do you know what IPO is?
a) Yes
b) No
c) May be
9. According to you, which amongst the following is the safest investment for
you?
a) Mutual Funds
b) Stock Market
c) Bank Deposit
d) Post Office Schemes
e) Other
10. Are you aware about different types of investment schemes?
a) Yes
b) No
c) May be

51
11. In this highly volatile market, do you think investment banks are a
destination to any firm or organization?
a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
e) Strongly Disagree
12. Are you aware that how investment banks help organizations?
a) Yes
b) No
13. According to you does investment bank gives us the opportunity to
become an expert at early stage?
a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
e) Strongly Disagree
14. According to you are investment banks helping for the growth of the
economy?
a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
e) Strongly Disagree

52
15. How would you rate about the experts in the stock market?
a) Excellent
b) Great
c) Good
d) Bad
e) Very Bad
16. From whom would you like to take investment advice?
a) Friends
b) Internet
c) Experts
d) Yourself
e) Other
17. How did you come to know about investment banking?
a) Newspaper
b) Television
c) Internet
d) Family
e) Other

53