A PROJECT REPORT ON

“ A STUDY ON GROWING INVESTMENT AVENUES AMONG SENIOR CITIZEN”

A PROJECT SUBMITTED TO
THE UNIVERSITY OF MUMBAI FOR PARTIAL FULFILLMENT THE DEGREE
OF BACHELOR IN COMMERCE (BANKING & INSURANCE)
UNDER THE FACULTY OF COMMERCE

SUBMITTED BY
Dipali Laxmidas Bhanushali
SEAT NO. :-
ROLL NO. :- BF21004

SEMESTER VI
ACADEMIC YEAR 2022 – 2023

UNDER THE GUIDANCE OF

PROF. RENU VERMA

THE S.I.A. COLLEGE OF HIGHER EDUCATION

PLOT NO. P – 88, MIDC RESIDENTIAL ZONE,
DOMBIVLI GYMKHANA ROAD, SAGARLI,
DOMBIVLI ( EAST ) 421 203

ACADEMIC YEAR 2023 – 2024

 THE S.I.A. COLLEGE OF HIGHER EDUCATION
Plot no. P – 88, MIDC Residential Zone,
Dombivali Gymkhana Road, Sagarli,
Dombivali East – 421 203

_________________________________________________________________

CERTIFICATE

This is to certify that Ms. DIPALI LAXMIDAS BHANUSHALI has worked and duly
completed her Project Work for the degree of Bachelors in Commerce ( Banking and
Insurance) under the faculty of Commerce in the subject of , “A STUDY ON GROWING
INVESTMENT AVENUES AMONG SENIOR CITIZEN” and her/his project is entitled
“ASSISTANT PROF. RENU VERMA” under my supervision.

I further certify that the entire work has been done by the learner under my guidance and that
no part of it has been submitted previously for any Degree or Diploma of any university.

It is her/his own work and facts reported by her/his personal findings and investigations.
 DECLARATION

I the undersigned Miss. DIPALI LAXMIDAS BHANUSHALI here by declare that the
work embodied in this project work titled “A STUDY ON GROWING INVESTMENT
AVENUES AMONG SENIOR CITIZEN” forms may own contribution to the
research work carried out under the guidance of PROF. RENU VERMA is a result
of my own research work and has no been previously submitted to any other
university for any other Degree/Diploma to this or any other university.

Whenever reference has been made to previous work of others, it has been clearly indicated
as such and include in the bibliography.

I, here by further declare that all information of this documents has been obtained and
presented in accordance with academic rules and ethical conducts.

SIGNATURE OF STUDENT
(DIPALI LAXMIDAS BHANUSHALI)

SIGNATURE OF GUIDE
( PROF. RENU VERMA)
 ACKNOWLEDGEMENT

To list all have helped me is difficult because they are so numerous and death is so enormous.
I would like to acknowledge the following as being idealistic channels and fresh dimensions
in the completion of this project.

I take this opportunity to thank the UNIVERSITY OF MUMBAI for giving me chance to
do the project .

I would like to thank my PRINCIPAL MAM. DR. PADMAJA ARVIND for providing the
necessary facilities required for completion of this project.

I take this opportunity to thank our COORDINATOR, PROF RENU VERMA for her
moral support or guidance.

I would also like to express my sincere gratitude towards MY PROJECT GUIDE. PROF.
RENU VERMA whose guidance and guide made the project successful.

I would like to thank my COLLEGE LIBRARY and LIBRARIAN. BHARTI RAO for
having provided various reference books and magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped me in
the completion of the project especially my Parents and my Peers who supported me
throughout my project.
 INDEX

CHAPTER
TITTLE OF THE CHAPTER PAGE NO.
NO.

1. INTRODUCTION 5-26

2. REVIEW OF LITRATURE 27-28

3. 29-31
RESEARCH METHODOLOGY

4. DATA ANALYSIS AND 22-52

INTERPRETATION

5. FINDINGS 53-54

6. 55-56
CONCLUSIONS

7. SUGGESSION 57-58

8. BIBLIOGRAPHY 59

ANNEXURE
9. 60-63
 CHAPTER :- 1
INTRODUCTION
INTRODUCTION TO INVESTMENT
Senior citizens often rely on their investments to meet their daily expenses, medical bills, and
other financial needs. A lot of noise is about food-borne diseases, improper lifestyles and its
associated hazards and old age people are more prone to these elements due to reduced
resistance power and impacted immunity. Understanding their investment patterns helps
ensure their financial security during retirement. Analyzing the investment choices of senior
citizens can shed light on how well they are prepared for retirement. It can help identify gaps
in their retirement planning and inform strategies to improve their financial well-being during
their retirement years. The retirement plans must meet the growing rate of inflation. Investing
in securities is one way of meeting those inflationary standards. Senior citizens contribute to
the economy through their investments, and their financial decisions can significantly impact
various sectors, including the stock market, mutual funds, and insurance.

Meaning

Investment is an asset acquired or money committed with a purpose to earn income in future.
Investments are also made to benefit from future appreciation in the value of an asset.
Investment is a purchase of goods which is future-oriented, aimed at earning income in the
future or creating wealth in the future. An individual may also seek to gain by selling the
asset in future for a higher price.
There is always an element of risk associated with an investment. Risk is the likelihood of
securing the return of the amount invested. The risk is low in cases such as investments in
government securities. The risk is high in case of investment in stocks, new business
ventures, business expansion, and so on.

Investments can be broadly categorized into:

1) Fixed income investments such as debentures and bonds which bear a fixed
percentage of return such as interest.

2) Variable income investments, such as equities and real estate, do not provide a fixed
return annually. The dividends or rental payments vary each financial year. And, their
value appreciates in the long term.
 Investor

An investor is one 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 making a profit.

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

Investment Behaviour

Investment behaviours are defined as how the investor’s judge, predict, analyse and review
the procedures for decision making, which includes investment psychology, information
gathering, defining and understanding, research and analysis.

Investment behavior is based on uncertainty about the future and is thus risky. News and
rumors and speed and availability of information play important roles in investment markets.
Risk propensity, risk preference, and attitude are the major concepts and explanations of
investment behavior.
Investors employ biases and heuristics in their decisions to invest or not, and how much to
invest. Herding is another factor: people tend to imitate and follow other investors, probably
due to lack of relevant and reliable information and lack of courage to behave differently.

Investment Strategy

The investment strategy is a plan, which is created to guide an investor to choose the most
appropriate investment portfolio that will help them to achieve their financial goals within a
particular period of time.

An investment strategy is a systematic approach to making investment decisions based on

principles, guidelines, and rules.
It involves selecting a portfolio of investments expected to meet the investor's financial
goals while considering their risk tolerance, time horizon, and investment objectives.
A good investment strategy considers various factors, such as economic trends, market
conditions, and the investor's financial situation
Factors to consider before Investing

1) Three Pillars of Investment - You should consider following three pillars of investments
Safety: Safety refers to the preservation of the invested capital.
Returns: Returns refer to the potential profits or gains that an investment can generate over a
specific period.
Liquidity: Liquidity is the ease with which an investment can be converted into cash without
causing a significant impact on its market value.

2) Identify Your Investment Goals

Know your investment goals, i.e. identify whether you seek growth or value. You should
invest in equity funds or aggressive hybrid funds if you want high returns.

But these funds also come with high risks, so if you would want to park your money
somewhere which is not easily influenced by market volatility, then you should consider
bond funds.

You should plan out your objectives, like whether you want to have a retirement fund, fund
children’s education or wedding, have an emergency fund for urgent requirements, medical
expenses or other mishappenings, etc.

3)Your Investment Horizon – Think of your investment time horizon. A long time horizon
allows you benefit from compounding. (Read section on Grow your money with power of
compounding)
4)Your Risk Appetite – Assess your ability to withstand fluctuations or loss in the value of
your investments. Understand that higher-return investments often come with higher levels of
risk.

5)Investment Knowledge: Start your investment journey by learning basics of investing. If

you're new to investing, start with simple and more straight forward investment options
before exploring complex ones such as derivatives.

6)Tax Implications: Consider the tax implications of your investments. Different asset class
have different tax treatments.
7)Draw a personal financial roadmap : Before you make any investing decision, sit down
and take an honest look at your entire financial situation -- especially if you’ve never made a
financial plan before.
The first step to successful investing is figuring out your goals and risk tolerance – either on
your own or with the help of a financial professional. There is no guarantee that you’ll make
money from your investments. But if you get the facts about saving and investing and follow
through with an intelligent plan, you should be able to gain financial security over the years
and enjoy the benefits of managing your money.

8)Return on Investment (ROI) : Every opportunity that comes your way needs to be
measured with its expected ROI, in relation to your predicament. What this means is that the
lifestyle you choose to lead for the rest of your life will determine the amount of money you
require, which in turn would guide how you go about choosing your investments.

9)Liquidity: Short-term investments generally tend to be highly liquid and are excellent
places to park your cash. Recurring deposits, liquidity-debt funds, and large-cap mutual funds
are some examples of highly liquid investment options where money can be withdrawn
almost immediately.

10)Risk tolerance : Your risk tolerance is your ability to withstand financial losses. It's
crucial to evaluate your risk appetite and ensure that the investment aligns with it. Typically,
riskier investments tend to have higher returns, while safer investments have lower returns.
11)Fees and charges : Investment fees can significantly impact your returns. It's critical to
assess the costs and fees related to the investment and decide whether they support your
financial goals.

12)Market trends : Market trends can significantly impact your investment returns. It's
necessary to keep an eye on economic and market trends to identify potential opportunities.

13)Asset allocation : It is important to consider asset allocation when planning an investment

because it helps to determine the risk and return profile of the portfolio. Asset allocation is
the process of dividing one's investments among different asset classes such as stocks, bonds,
and cash. By properly diversifying one's portfolio, an investor can reduce risk and increase
return potential. Additionally, when asset allocation is done properly, it can help investors to
reach their financial goals by taking into account their risk tolerance and investment horizon.
History of Investment in India

Savings and investment are important not only to families but also for the development of the
country. Saving and investment have been an important priority for India as a nation, ever
since we got our independence from colonial era on the 15th August, 1947.

The Government of India constituted the National Savings Organization (now the National
Savings Institute) in 1948. This started the history of investment in India. The Post Office
Savings Bank is listed in the Constitution of India.

The Government Savings Certificate Act passed in the Parliament in 1959 and the Public
Provident Fund Act of 1968 setup the framework of the Government Small Savings Schemes.

The very idea of small savings is that, savings and investment should be inclusive, right down
to village level.

Successive Governments continued to build upon the idea of financial inclusion leading up to
the Prime Minister Jan Dan Yojana announced on our Independence day in 2014, which has
been a huge success. The success of Jan Dan Yojana will go long way in history of
investment in India.
Objectives of Investment

1) Wealth Accumulation
One of the main objectives of investment is to build wealth over time. By putting money into
assets like stocks, bonds, or real estate, investors aim to see their initial capital grow. This
growth can be through capital appreciation, where the asset's value increases, or through
regular income, such as dividends or interest payments. Wealth accumulation is often a long-
term goal, helping individuals achieve financial security or retirement readiness.

2)Income Generation
Many investors seek regular income from their investments. Bonds, dividend-paying
stocks, and rental properties are examples of assets that provide consistent income. This
objective is vital for those who rely on investments to cover living expenses or
supplement their earnings.

3)Capital Preservation
Some investors prioritize the preservation of their capital. They accept lower returns in
exchange for a higher degree of safety. Investments like government bonds or savings
accounts are chosen to protect the initial investment amount, making them suitable for
risk-averse individuals.

4)Diversification
Diversification is another key objective of investment. It involves spreading investments
across various asset classes, reducing the overall risk in a portfolio. Having a diversified
investment portfolio is like having a safety net during turbulent times.
5)Tax Efficiency
Optimizing tax liabilities is an essential objective for investors. Certain investment strategies
and accounts, like tax-deferred retirement plans, can offer tax benefits, allowing individuals
to save their hard-earned money.

6)Achieving Financial Goals

Investing plays a crucial role in reaching important financial milestones like purchasing
a house, financing education, or launching a business. To make sure you're on the right
path, it's vital to set clear financial goals and make investments that align with these
objectives.

7)Beating Inflation
Inflation gradually reduces the value of your money. To counter this, investors aim to
make investments that generate returns higher than the rate of inflation. They prefer
investments like stocks or real estate that have the potential for better returns.
Importance and benefit of Investment

1) It is a great source of passive income

One thing that the ongoing corona virus crisis has taught us is that we cannot solely rely on
your regular income. If we Are unable to earn our regular income for some reason, we can
land up in immense hardships.

2) Brings financial Independence

Are you afraid of becoming dependent on others after retirement for your monetary needs?
Do not worry. You can get financial freedom in your old age by investing regularly to create
a retirement Corpus. The passive income you will earn from this corpus will enable you to
take care of your monthly expenses and other needs comfortably after retirement.

3) The power of compounding

Compounding occurs when an investment generates earnings or dividends which are then
reinvested. These earnings or dividends then generate their own earnings. So, in other words,
compounding is when your investments generate earnings from previous earnings.

4) Diversification can reduce risk

Diversification can help mitigate investment risk by choosing different investments and types
of investments.

5) Investing saves taxes

Investing can help you save money on taxes as well. If you make an investment of Rs 1.5
lakh under Sec 80C to reduce your taxable income.
You can invest in PPF, ELSS (Tax Saver Funds), Sukanya Samriddhi Yojana (SSY), Fixed
Deposits, and National Pension System (NPS).
 6)It acts as an emergency fund
Investments are also your emergency funds. A medical crisis, an emergency, or a job loss –
investments can help you with a host of financial problems and ensure you are able to take
care of your responsibilities with ease.
Good investments are hard to manage on your own, you can always reach out to a financial
advisor that can help you invest in funds that you can liquidate and use whenever the need
arises.
Remember investing and saving must go hand in hand if you want to meet your financial
goals timely and successfully!

7)A way to plan your retirement

Investing is also a means of creating a retirement fund for yourself sooner rather than later.
By investing in mutual funds, you can create a retirement plan in the time horizon you want
and make use of compounding that can double the returns. Another benefit is that investment
helps you beat inflation.

8) It lets you follow your passion

Do you dream of retiring early to pursue a passion that you have? If yes, then your
investments are the key to achieving your dream. Your strategy should be to invest and
accumulate wealth in a planned way in your early years and when you accumulate a sizable
wealth, retire early.

The passive income you earn from those investments will help you to meet your expenses
thereafter while you are busy in actively pursuing your passion.
Disadvantages of Investment

1) Liquidity Constraints
According to our methodology, people investing in long-term investments tend to face
several liquidity constraints. Liquidity constraints refer to the limitations investors face when
trying to liquidate their assets. Long-term investments are less liquid, and therefore, investors
must set aside an emergency fund to prevent such issues.

2) Limited Flexibility
Long-term investors must wait for their securities to mature before they are allowed to get
their cash. Having lock-in periods limits the ability of investors to divert resources and are
often unable to account for changing events. However, stocks or mutual equity funds happen
to offer a certain level of flexibility to investors.

3) Emotional Stress
According to our methodology, long-term investments come with a great degree of emotional
stress. Long-term investments can be stressful especially when markets are fluctuating or
volatile. While long-term investors do enjoy the benefit of recovering from losses, the
process may be a nerve-wracking experience.

5) Limited Diversification
Investing in long-term investments is a huge commitment, that often hinders the ability of
being able to diversify an investor's portfolio. Diversification is particularly important to
minimize risk, therefore, investors directing their resources to long-term investments may
have to miss out on potential gains from other investments, such as young and high-growth
tech companies, which could potentially be more riskier.

6) Inflation Risk
Inflationary risk is the risk that inflation will undermine an investment's returns through a
decline in purchasing power.
Mistakes that senior citizens must avoid while investing

1) Investing Heavily in Fixed Income Ignoring Inflation

While fixed income investments like Fixed Deposits (FDs) are considered safe and stable,
they might not be the best choice for allocating the entire retirement corpus. FDs typically
offer post tax returns less than the inflation in the long term. The silent killer of inflation can
erode the purchasing power of savings over time. Instead, it makes sense to diversify
portfolio by allocating a portion of funds to equity through mutual funds (MFs). While equity
investments carry some risk, they offer returns that historically has outpaced inflation and can
potentially reward investors in the long run. As longevity increases, retired persons also need
to think of long term.

2) Overreliance on Small Savings Schemes: Balancing Liquidity and Returns

SSS offer attractive rate of interest, and more important they are backed by sovereign, which
makes many senior citizens beeline for investing in them. However, lock-in periods and
limited liquidity that come with SSS can be problematic during emergencies. Senior citizens
should avoid putting all their eggs in this basket and consider maintaining a portion of their
funds in good quality debt funds. Debt funds provide better liquidity, allowing access to
funds when needed.

3) Blindly Chasing High Interest Rates: The Hidden Credit Risk

It's tempting to invest in schemes offering exceptionally high interest rates, especially during
times when every extra penny matters. However, many of these schemes can come with
hidden credit risks. To avoid falling victim to scams or unreliable investment avenues, it's
wiser to invest in curated, good quality Non-Banking Financial Company (NBFC) Fixed
Deposits and debt funds. These options are relatively safe and well regulated.

4) Neglecting Post-Tax Returns: Maximizing Returns after Taxation

One common mistake retirees make is focusing solely on the pre-tax returns of their
investments, without considering the impact of taxes. Putting all funds in FDs might seem
like a safe choice, but the post-tax returns can be disappointing. To beat inflation and mitigate
the impact of taxation, consider diversifying portfolios by investing in mutual fund schemes –
both equity and hybrid. These investments not only have the potential for higher returns but
also offer tax advantages that can significantly improve overall portfolio returns.
Top Investment Avenues available for the Senior Citizens
1) Direct Equity
Direct equity investments refer to those investments made by investors directly in the stock
market for buying the company shares/stocks.
In other words, the money invested in the shares of the company is termed equity.
In legal terms, the investor is buying partial ownership of the company to get the voting
rights.
Investment in equity has been quite popular among investors as it can generate inflation-
beating returns.
At the same time, they expose the individual’s portfolio to high risk. Hence, every individual
must understand their risk-taking capacity before they decide to invest in the stock market.

2) National Pension System (NPS)

NPS seeks to inculcate the habit of saving for retirement amongst the citizens. It is an attempt
towards finding a sustainable solution to the problem of providing adequate retirement
income to every citizen of India.
Under NPS, individual savings are pooled in to a pension fund which are invested by PFRDA
regulated professional fund managers as per the approved investment guidelines in to the
diversified portfolios comprising of Government Bonds, Bills, Corporate Debentures and
Shares. These contributions would grow and accumulate over the years, depending on the
returns earned on the investment made.
At the time of normal exit from NPS, the subscribers may use the accumulated pension
wealth under the scheme to purchase a life annuity from a PFRDA empaneled Life Insurance
Company apart from withdrawing a part of the accumulated pension wealth as lump-sum, if
they choose so.
3) Public Provident Fund (PPF)
Investors use the PPF as a tool to build a corpus for their retirement by putting aside sums of
money regularly, over long periods of time (PPF has a 15-year maturity, and the facility to
extend the tenure). With its attractive interest rates and tax benefits, the PPF is a big favourite
with a small saver.

The PPF is popular because it is one of the safest investment products. i.e., the government of
India guarantees your investments in the fund. The interest rate is set by the government
every quarter. PPF scores over many other investment options mainly because your
investment is tax exempt under section 80C of the Income Tax Act (ITA) and the returns
from PPF are also not taxable.

4) Senior citizen saving Scheme (SCSS)

Probably the first choice of most retirees, the Senior Citizens’ Saving Scheme is a must-have
in their investment portfolios.
As the name suggests, only senior citizens or early retirees can invest in this scheme. This can
be availed from a post office or a bank by anyone above 60 years.
SCSS has a five-year tenure, which can be further extended by three years once the scheme
matures. Currently, the interest rate that can be earned on SCSS is 8.3 per cent per annum,
payable quarterly and is fully taxable. The upper investment limit is Rs 15 lakh, and one may
open more than one account.
The Senior Citizens Savings Scheme (SCSS) was launched with the main aim of providing
senior citizens in India a regular income after they attain the age of 60 years old.
Some of the main benefits of the scheme are:
Tax benefits are provided.
Safe to invest in the scheme.
Premature withdrawal is allowed.
The account can be transferred across the country.
High interest rates.
5) Fixed Deposits
In India, 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. FDs are also called term deposits.
A Fixed Deposit offers guaranteed returns. Unlike market-led investments where returns
fluctuate over time, the returns on an FD are fixed when you open the account. Even if
interest rates fall after you open a Fixed Deposit, you will continue to receive the interest
decided at the start. FDs are considered much safer than investments in other assets like
equity.

6) Bonds or Debentures
Individuals looking to invest for the long term can purchase bonds or debentures that pay a
fixed amount each month dependent on the interest rate. They are considered to be less
dangerous than other alternatives. The degree of risk associated with debentures and bonds is
determined by the issuer. This kind of security includes public sector bonds as well as bonds
issued by the federal and state governments.
7) Gold Investment
In India, gold is the most popular investment, although there are concerns about its safety and
the cost of making jewellery with it. While gold coins and biscuits are still available for
purchase, a gold exchange-traded fund (ETF) may be a more prudent investment.
Buying and selling gold paper is now easier and more affordable than it was in the past when
using ETFs. Despite the fact that jewellery is a very liquid asset class, amateur investors who
are unfamiliar with it or who get it from an unethical jeweller may find it difficult to pass up.
9) Mutual Funds

A mutual fund is an investment option where money from many people is pooled together to
buy a variety of stocks, bonds, or other securities. This mix of investments is managed by a
professional money manager, providing individuals with a portfolio that is structured to
match the investment objectives stated in the fund's prospectus.

A mutual fund is a type of investment vehicle consisting of a portfolio of stocks, bonds, or

other securities.
Mutual funds give small or individual investors access to diversified, professionally managed
portfolios.

Mutual funds are divided into several kinds of categories, representing the kinds of securities
they invest in, their investment objectives, and the type of returns they seek.
 CHAPTER :- 2
REVIEW OF LITRATURE
JencyBaby(2019):Concluded that in India, a considerable percentage of citizens are aware of
stock market games and its effective functioning. Majority of them purchases gold and land
as investment that are considered to be most ideal form of investment as it carries good return
and appreciation. This confirms that that Indian investors even if they are high income class,
well educated, salaried, independent are conservative, still investors prefer to play safe.

L.Nithya and S.Suma Devi (2014): The study concluded that the respondent who are in the
category of living with children only and Living with Family (Spouse & Children) have
preferred medium saving habit, living with spouse only and living alone have preferred high
saving habit and there is significant difference between the monthly income of respondents
and their level of investment.

KunjummenTTharian(2020): Concluded that Senior citizens require adequate information

for making apt Investment decision. Preparation for retirement and old age should be planned
in advance. Study suggested that Investment awareness and information regarding various
investment avenues is necessary to select right investment decision.

Sushil Kumar Mehta entitle (2011), After analyzing the data, researchers found that the
people in Jammu region are conservative in nature and want their money to be safe. They are
not that concerned for the growth of the money or liquidity. There is no association of age,
gender, occupation, education with the appropriate investment period, but there is a
significant relationship of income with the appropriate investment period.

Sonal Patil & Kalpana Nandawar (2014) examined that investors are aware about
investment avenues available in India. Most preferred investment is to invest in bank
deposits, metal (Gold) & real estate. Safety is important factor and prefers secured regular
income on investment
 CHAPTER :- 3

RESEARCH METHODOLOGY
OBJECTIVES OF THE STUDY: -

 To analyze the investment pattern of senior citizen at Dombivli.

 To analyze the saving habits of senior citizen.

 To analyze the various avenues that is available for safer investment.

 To analyze the taste and preference of senior citizen towards risky investments.

 To study the various alternatives of investment which are available in the market

 To find out how much senior citizens are motivated to invest in various financial
instruments.

 To analyze the pattern of investment among senior citizen.

 To find whether senior citizen prefer modern type investment or traditional type of
investment.

 To spread awareness among senior citizen of various investment instruments.

DATA COLLECTION METHODOLOGY: -

In order to collect necessary data, the following methodology was adopted.
PRIMARY DATA: -
Samples of 60 respondents are selected of those who are senior citizen likely to invest
their savings in various investment avenues in Dombivali area. The scope of the study
has been limited to Dombivali. The objectives and relevant questions for the schedule
framed are accordingly.
For the purpose of data collection, the schedule is used each schedule consists of 20
questions. The data collected are the further processed using various statistical tools
are used to analysis the data.
 SECONDARY DATA :-
A secondary data is that data is required to conduct the study and can be obtained
from books, journals, Magazines, records, etc. Secondary data is data taken by the
researcher from the secondary source, internal and external. Secondary data is
collected from following sources: -
1)Books and magazines
2)Journals
3)Internet, website, etc.

SAMPLE SIZE :-
For the present study, sample of those who are involved with growing investment avenues
among senior citizen in Kalyan, Dombivali area where taken from analysis. The sample size
of my respondents is 65 individuals.
.
 CHAPTER :- 4
DATA ANALYSIS AND INTERPRETATION
1. Age

PARTICULARS NO.OF RESPONDENTS PERCENTAGE

60-65 54 83.1

65-70 6 9.2

70-75 4 6.2

75-80 1 1.5

Total 65 100

INTERPRETATION :-

From the above table and pie diagram shows that, 83.1% respondents (54 respondents) are
60-65 Age Group, 9.2% respondents (6 respondents) are 65-70 Age Group, 6.2% respondents
(4 respondents) from 70 – 75 Age Group, 1.5% respondents ( 1 respondents ) is 75-80 Age
Group.
2)Gender

PARTICULARS NO.OF RESPONDENTS PERCENTAGE

Male 20 18.2

Female 45 81.8

Total 65 100

INTERPRETATION :-

From the above table and pie diagram shows that, 18.2% respondents (20 respondents) are
Male, 81.8% respondents ( 45 respondents ) are Female.

3)Do you prefer investing your money?

 PARTICULARS NO.OF RESPONDENTS PERCENTAGE

Yes 60 92.3

No 1 1.5

Sometimes 4 6.2

Total 65 100

INTERPRETATION :-

From the above table and pie diagram shows that, 92.3% respondents (60 respondents) are
willing to invest their savings, 6.2% respondents (4 respondents) are investing sometimes.

4)In which investment instrument you would like to invest?

 PARTICULARS NO.OF RESPONDENTS PERCENTAGE

Traditional 48 73.8

Modern 17 26.2

Total 65 100

INTERPRETATION :-

From the above diagram 73.8% respondents (48 respondents) like to invest in
traditional way of investment and 26.2% respondents (17 respondents) like to
in modern way of investment.

5)In which investment avenues you would like to invest?

 PARTICULARS NO.OF RESPONDENTS PERCENTAGE

Direct Equity 36 55.4

Equity Mutual Fund 6 9.2

Debt Mutual Fund 5 7.7

National Pension Scheme 3 4.6

Public Provident Fund 2 3.1

Bank Fixed Deposit 5 7.7

Senior Citizen Saving 1 1.5

Scheme

Gold 6 9.2

Debentures 1 1.5
Total 65 100

INTERPRETATION :-
From the above diagram 55.4% respondents (36 respondents) like to invest in
direct equity and other respondents consider modern type of investment. Here
we see that majority of respondents has chosen direct equity.
6)How much interest rate you get on your investments?
 PARTICULARS NO.OF RESPONDENTS PERCENTAGE

More than 3% 37 56.9

More than 5% 15 23.1

More than 8% 8 12.3

More than 10% 5 7.7

Total 65 100

Interpretation

From the above diagram we are able to see that 56.9% respondents (37
respondents) are getting interest rate more than 3%, 23.1%respondents (15
respondents) are getting interest rate more than 5%, 12.3 %respondents (8
respondents) are getting interest rate more than 8%, 7.7 %respondents (5
respondents) are getting interest rate more than 10%.

7)How much you are satisfied with the rate of return on your investment?
 PARTICULARS NO.OF RESPONDENTS PERCENTAGE

Strongly agree 40 61.5

Agree 15 23.1

Neutral 9 13.8

Strongly disagree 1 1.5

Disagree 0 0

Total 65 100

INTERPRETATION:-
From the above table and pie diagram shows that, 61.5% respondents ( 40 respondents) are
Very Satisfied with interest rate, 23.1% respondents ( 15 respondents ) are Satisfied with
interest rate, 13.8 respondents ( 9 respondents ) are Neutral, 1.5% respondents ( 1 respondents
) are strongly Dissatisfied with interest rate.

8)Do you think investing in fixed deposit is more safer than other investment?
 PARTICULARS NO.OF RESPONDENTS PERCENTAGE

Strongly agree 43 66.2

Agree 15 23.1

Neutral 5 7.7

Strongly disagree 1 1.5

Disagree 1 1.5

Total 65 100

Interpretation

From the above table and pie diagram shows that, 66.2% respondents ( 43 respondents)
considers fixed deposit is extremely safer than investment, 23.1% respondents ( 15
respondents ) considers fixed deposit is safer, 7.7% respondents ( 5 respondents )considers it
is Neutral, 1.5% respondents ( 1 respondents ) consider other investment option, 1.5%
respondents ( 1 respondents ) considers other investment option.

9)There are various investment avenues available how much you are aware about it?
 PARTICULARS NO.OF RESPONDENTS PERCENTAGE

Highly aware 47 72.3

Aware about more then 2 13 20

investment

Aware about more then 4 4 6.2

investment

Not aware at all 1 1.5

Total 65 100

Interpretation

From the above table and pie diagram shows that, 72.3% respondents (47 respondents) are
totally aware about all the investment. 20% respondents (13 respondents) are aware about
more than 2 investments. 6.2% respondents (4 respondents) are aware about more than 4
investment, 1.5% respondents (1 respondents) are not aware about any investment.

10)How long do you plan to invest?

 PARTICULARS NO.OF RESPONDENTS PERCENTAGE

1 year 35 53.8

3 year 18 27.7

5 year 3 4.6

More than 5 year 6 9.2

More than 10 year 3 4.6

Total 65 100

Interpretation

From the above table and pie diagram shows that, 53.8% respondents
(35respondents) plan to invest till 1 year, 27.7% respondents (18respondents)
plan to invest till 3 year, 4.6% respondents (3respondents) plan to invest till 5
year, 9.2% respondents (6 respondents) plan to invest more than 5 years, 4.6%
respondents (3 respondents) plan to invest more than 10 years.

11)What are the factors to which you give priority when you invest?
 PARTICULARS NO.OF RESPONDENTS PERCENTAGE

Safety 46 70.8

Higher Returns 11 16.9

Liquidity 2 3.1

Moderate risk 4 6.2

Tax benefit 2 3.1

Total 65 100

Interpretation
From the above table and pie diagram shows that, 70.8% respondents (46
respondents) give priority to safety while investing, 16.9% respondents (11
respondents give priority to higher returns while investing, 3.1% respondents (2
respondents) give priority to liquidity while investing, 6.2 respondents (4
respondents) can bear moderate risk while investing, 3.1% respondents (2
respondents) give priority to tax benefit while investing.

12)How is your investment pattern?

 PARTICULARS NO.OF RESPONDENTS PERCENTAGE

Monthly 46 70.8

Once in six months 11 16.9

Once in a year 5 7.7

Randomly 3 4.6

Total 65 100

Interpretation
From the above table and pie diagram shows that, 70.8% respondents (46
respondents) invest monthly, 16.9% respondents (11 respondents) invest once in
six month, 7.7% respondents (5 respondents) ) invest once in a year, 4.6
respondents (3 respondents) invest randomly.

13)How do you invest your money?

 PARTICULARS NO.OF RESPONDENTS PERCENTAGE

Lump sum 52 80

Installments 13 20

Total 65 100

Interpretation

From the above table and pie diagram shows that, 80% respondents (52
respondents) invest Lump sum amount and 20% respondents (13 respondents)
invest in Installment their amount.
.

14) Do you invest in such securities which contains Lock-In period?

 PARTICULARS NO.OF RESPONDENTS PERCENTAGE

Yes 45 77.3

No 10 11.4

May be 10 11.4

Total 65 100

Interpretation
From the above table and pie diagram shows that, 77.3% respondents (45
respondents) are likely to invest in such securities which contains Lock-In
period. 11.4% (10 respondents) are not likely to invest in such securities. 11.4%
(10 respondents) are neutral.
15)Do you like to invest in such securities which are easily converted into cash?

PARTICULARS NO.OF RESPONDENTS PERCENTAGE

Yes 49 75

No 5 9.1

May be 11 15.9

Total 65 100

Interpretation
From the above table and pie diagram shows that, 75% respondents (49 respondents) are likely to
invest in such securities which are easily converted into cash, 9.1% (5 respondents) are not
likely to invest in such securities which are easily converted into cash,. 15.9% (11 respondents) are
neutral
16)Do you know the level of risk involved in each investment?

PARTICULARS NO.OF RESPONDENTS PERCENTAGE

Strongly agree 37 56.9

Agree 22 33.8

Neutral 6 9.2

Strongly disagree 0 0

Disagree 0 0

Total 65 100

Interpretation
From the above table and pie diagram shows that, 56.9% respondents ( 37 respondents)
highly aware about level of risk involved in each investment, 33.8% respondents ( 22
respondents ) know about level of risk involved in each investment, 9.2% respondents ( 6
respondents ) are Neutral,
17)What are your biggest concerns about investing?

PARTICULARS NO.OF RESPONDENTS PERCENTAGE

Market volatility 45 69.2

Loss of money 6 9.2

Lack of knowledge 7 10.8

Finding safer investment 7 10.8

Total 65 100

Interpretation

From the above table and pie diagram shows that, 62.9% respondents (45 respondents)
considers Market volatility as biggest concerns while investing, 9.2% respondents (6
respondents) considers Loss of money as biggest concerns while investing, 10.8%
respondents (7 respondents) considers Lack of knowledge as biggest concerns while
investing, 10.8% respondents (7 respondents) consider Finding safer investment as biggest
concerns while investing.

18)Will you invest your money in foreign security?

 PARTICULARS NO.OF RESPONDENTS PERCENTAGE

Strongly agree 36 55.4

Agree 12 18.5

Neutral 11 16.9

Strongly disagree 1 1.5

Disagree 5 7.7

Total 65 100

Interpretation

From the above table and pie diagram shows that, 55.4% respondents (36
respondents) will definitely prefer investing in foreign security, 18.5%
respondents (12respondents) will invest in foreign security, 16.9% respondents
(11respondents) are neutral in investing in Foreign Security, 1.5% respondents
(1 respondent) is definitely not going to invest in foreign security, 7.7%
respondents (5respondents) do not prefer investing in foreign security.

19) Do you know the risk associated with investing in foreign security?
 PARTICULARS NO.OF RESPONDENTS PERCENTAGE

Highly aware 45 62.2

Neutral 15 23.1

Not aware at all 5 7.7

Total 65 100

Interpretation

From the above table and pie diagram shows that, 62.2% respondents (45 respondents) are
highly aware about risk associated with investing in foreign security. 23.1% respondents (15
respondents) are neutral, 7.7% respondents (5 respondents) are not aware about risk
associated with investing in foreign security.

20) Do you know about Sovereign Gold Bond?

 PARTICULARS NO.OF RESPONDENTS PERCENTAGE

Yes 49 75

No 5 9.1

May be 11 15.9

Total 65 100

Interpretation
From the above table and pie diagram shows that, 75% respondents (49 respondents) are
aware about sovereign gold bond, 9.1% (5 respondents) are not aware about sovereign gold
bond , 15.9% (11 respondents) are neutral.
CHAPTER :- 5
FINDINGS
 Majority of the respondents are age group between 60– 65 (83.1%).
 Majority of the respondents are female (81.8%).
 Majority of the respondents prefer investing their money (92.3%).
 Majority of the respondents prefer investing in traditional type of investment (73.8%).
 Majority of the respondents considers direct equity as preferred investment option
(55.4%).
 Majority of the respondents are getting more than 3% interest rate on their investment
(56.9%).
 Majority of the respondents are extremely satisfied with the rate of return they are
getting on their investment (61.5%).
 Majority of the respondents think that investing in fixed deposit is safer than other
investment (66.2%).
 Majority of the respondents are highly aware about all the investment avenues available
(72.3%).
 Majority of the respondents plan to invest around one year (53.8%).
 Majority of the respondents gives priority to safety factor when they invest (70.8%).
 Majority of the respondents investment pattern is they invest monthly (70.8%).
 Majority of the respondents invest their money in lump sum (80%).
 Majority of the respondents consider investing in such securities which contains lock in
period (77.3%).
 Majority of the respondents consider investing in such securities which are easily
converted into cash (75%).
 Majority of the respondents are highly aware about level of risk involved in each
investment (56.9%).
 Majority of the respondents consider market volatility as biggest concerns while
investing (69.2%).
 Majority of the respondents are willing to invest in foreign securities (55.4%).
 Majority of the respondents are highly aware about risk associated with investing in
foreign security (62.2%).
 Majority of the respondents are aware about sovereign gold bond (75%)
CHAPTER :- 6
CONCLUSION
Every investor prefers to invest in financial instruments that ensure better
rewards with negligible risk. In Indian considerable percentage of senior
citizens are aware of stock market games and its effective functioning.
Majority of them purchases gold and land as investment that are considered to be
most ideal form of investment as it carries good return and appreciation. This
confirms that that Indian investors even if they are high income class, well
educated, salaried, independent are conservative, still investors prefer to play safe.

As the inflationary position of the economy is steeping upwards from the past
years and still increasing from time to time, the rate of return should ensure a
cover against the inflation.

The returns must be higher than the rate of inflation; otherwise the investor will
have loss in real terms. The return thus earned should assure the safety of the
principal amount, regular flow of income and be a hedge against inflation.

Thus while selecting an investment avenue, one have to match their own risk
profile with the risks associated with the product before investing. Every
individual in service have to walk through the path of being old after attaining a
certain age which is gradual process in one’s life and have to shape their life
accordingly.

So it becomes utmost necessary for an individual to reduce their public

expenditures and concentrate more in investment avenues for their remaining part
of life. For this, an appropriate investment strategy has to be adopted by analyzing
each and every investment opportunities that are available in the market, scrutinize
the same and adopt a combination of three to four patterns for getting attractive
return which in turn help to spent a comfortable life.

They are likely to invest in foreign securities. They also know the risk associated
with investing in Foreign Security. They are willing to invest in sovereign gold
bond rather than investing in gold. They plan to invest more than 1 year. Ratio of
investing in lump sum is more than ratio of investing in installments amount.
CHAPTER :- 7
SUGGESTION
This study is undertaken to know the preference of senior citizen on various investment
avenues. It is clear that senior citizen are preferring Government/Public sector for investment
which gives a slow or smooth and permanent return on investment with low risk.

Senior citizens are less aware of latest investment avenues and hesitate to take risky
investment, they have to be properly educated about various latest investment avenues
available, and most of the respondent’s sources of information about various investment
avenues are advertisement.

We have to do more advertisement regarding to modern type of investment so that it gives

confidence in the mind of senior citizen to invest in modern type of investments.

It has been seen that majority of the senior citizen prefer investing their money. As we have
seen from the survey that majority of senior citizen are investing in traditional type of
investment.

There is a need to make senior citizen understand the benefits of investing in modern type of
investments. Majority of senior citizens are only getting 3% interest rate which is not beating
the inflation rate.

We have to make them aware about inflation beating investment avenues so that they do not
face loss on their interest rate.
Majority of senior citizen think that investing in fixed deposit is safer than other investments.
We have to educate them that are various options like senior citizen saving scheme, national
pension scheme etc.

CHAPTER :- 8
BIBLIOGRAPHY

1. https://www.researchgate.net
2. https://www.ncbi.nlm.nih.gov
3. https://core.ac.uk
4. https://www.ilkogretim-online.org
5. https://en.m.wikipedia.org
6. https://www.iosrjournals.org
7. https://www.careinsurance.com

CHAPTER :- 9
ANNEXURE
1. Age
a) 60-65
b) 65-70
c) 70-75
d) 75-80
2. Gender
a) Male
b) Female
3. Do you prefer investing your money?
a) Yes
b) No
c) Sometimes
4. In which investment instrument you would like to invest?
a) Traditional
b) Modern
5. In which investment avenues you would like to invest?
a) Direct Equity
b) Equity Mutual Fund
c) Debt Mutual Fund
d) National Pension Scheme
e) Public Provident Fund
f) Bank Fixed Deposit
g) Senior Citizen Saving Scheme
h) Gold
i) Debentures
j) Bonds
6. How much interest rate you get on your investments?
a) More than 3%
b) More than 5%
c) More than 8%
d) More than 10%
7. How much you are satisfied with the rate of return on your investment?
a) Strongly Agree
b) Agree
c) Neutral
d) Strongly Disagree
e) Disagree
8. Do you think investing in fixed deposit is safer than other investment?
a) Strongly Agree
b) Agree
c) Neutral
d) Strongly Disagree
e) Disagree
9. There are various investment avenues available how much you are aware about it?
a) Highly aware
b) Aware about more than 2 investment
c) Aware about more than 4 investment
d) Not aware at all
10. How long do you plan to invest?
a) 1 year
b) 3 years
c) 5 years
d) More than 5 years
e) More than 10 years
11. What are the factors to which you give priority when you invest?
a) Safety
b) High returns
c) Liquidity
d) Moderate risk
e) Tax benefit
12. How is your investment pattern?
a) Monthly
b) Once in six months
c) Once in a year
d) Randomly
13. How do you invest your money?
a) Lumpsum
b) Installments
14. Do you invest in such securities which contains Lock-In period?
a) Strongly Agree
b) Agree
c) Neutral
d) Strongly Disagree
e) Disagree
15. Do you like to invest in such securities which are easily converted into cash?
a) Yes
b) No
c) Maybe
16. Do you know the level of risk involved in each investment?
a) Strongly Agree
b) Agree
c) Neutral
d) Strongly Disagree
e) Disagree

17. What are your biggest concerns about investing?

a) Market volatility
b) Loss of money
c) Lack of knowledge
d) Finding safer investment
18. Will you invest your money in foreign security?
a) Strongly Agree
b) Agree
c) Neutral
d) Strongly Disagree
e) Disagree
19. Do you know the risk associated with investing in foreign security?
a) Highly aware
b) Neutral
c) Not aware at all
20. Do you know about Sovereign Gold Bond?
a) Yes
b) No
c) Maybe