PROJECT REPORT

ON
PERCEPTION OF INVESTORS TOWARDS STOCK MARKET
INVESTMENTS

Submitted in partial fulfilment of requirement of

Bachelor of Business Administration

BBA VI Semester
Batch 2020 - 2023

Submitted To: Submitted By:

Dr. Surbhi Ahuja Shubhadeep Sen Neogi
(Associate Professor) 04224501720
(Evening)

JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL, KALKAJI

1
 STUDENT’S UNDERTAKING

I hereby declare that the presented project on “Perception of Investors towards

Stock Market Investments" is my original research work for the fulfilment of the
Final Project Report for Bachelor of Business Administration (BBA) (2020-23). The
report has been done by me under the guidance of Dr. Surbhi Ahuja (Faculty Guide)

I hereby certify that this is my original work and it has never been submitted elsewhere.

Shubhadeep Sen Neogi

(04224501720)

2
 CERTIFICATE

This is to certify that Shubhadeep Sen Neogi, enrolment number 04224501720

pursuing BBA from Jagannath International Management School, Kalkaji has
successfully completed the Final project on the title “Perception of Investors
towards Stock Market Investment” under my supervision and guidance.

She has taken care of all necessary aspects and has shown keen interest and utmost
sincerity during the completion of this project file.

I certify that this project file is up to my satisfaction and as per the guidelines laid down
by the Guru Gobind Singh Indraprastha University.

Dr. Surbhi Ahuja Shubhadeep

(Associate Professor) (04224501720)

3
 ACKNOWLEDGEMENT

This training report contains a lot of efforts by many individuals without whom this
project would not have been completed successfully. I would like to pay my gratitude
to all of them.
Firstly, I am highly intended and extremely thankful to Dr. Surbhi Ahuja, Assistant
Professor, JIMS Kalkaji who as my guide was a constant source of inspiration and
encouragement to me. The strong interest evinced by her has helped me in dealing
with the problems I faced during the course of project work. I express my profound
sense of gratitude to her for her timely help and co-operation in completing the project.
I would like to thank my entire beloved family & friends for providing me monetary as
well as non-monetary support, as and when required without which this project would
not have completed on time.

4
 CONTENTS
S NO. Description Page No.

1. Title Page 1

2. Student Undertaking 2

3. Certificate 3

4. Acknowledgement 4

5. Table Of Contents 5

6. List of Tables 6

7. List of Exhibits 7-8

8. Chapter 1 9-12
 Introduction to the Topic
 Importance Of the Topic of Research

9. Chapter 2 Objectives of the Study 13-14

10. Chapter 3 Literature Review 15-29

11. Chapter 4 Research Methodology 30-38

12. Chapter 5 Analysis and Interpretation of Data 39-55

13. Chapter 6 Limitations of The Study 56-57

14. Chapter 7 Findings 58-60

15. Chapter 8 Recommendations and Conclusion 61-62

16. References 63-64

17. Questionnaire 65-68

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 LIST OF TABLES
S.NO. Tables Table name Page
No.
1. 4.1 Research Process 37
2. 5.1 40
Do you like investing?
3. 5.2 What is your age when you 41
first invested in something
4. 5.3 42
What is the primary objective of
investment?
5. 5.4 43
What factors you keep in mind while
investing?
6. 5.5 44
What is your source of motivation for
investing?
7. 5.6 45
Does qualification matter while
investing?
8. 5.7 46
Do you think gender and investment
have association with each other?
9. 5.8 47
Did you face any loss due to COVID
19?
10. 5.9 48
Is your monthly investment being
affected post covid-19?
11. 5.10 49
Which mode do you prefer for
investing?
12. 5.11 50
Which investing option do you prefer
to invest in?
13. 5.12 51
Is market information important to
individual investors’ investment
decisions?
14. 5.13 52
What investment option do you find
safest after covid-19?
15. 5.14 How much will you rate the 53
investment system in India out
of scale of 5?
16. 5.15 54
What do you think Indian economy
will rise and change the future of
investment business?

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 LIST OF EXHIBITS
S.NO. Figures Figure name Page
No.
1. 3.1 Gold rates performance 22
analysis of 6 months in Indian
rupees:-
2. 3.2 Impact on household due to 26
COVID-19
3. 3.3 BSE Sensex results:- 27
4. 3.4 Nifty results:- 27
5. 4.1 The Research Process 31
6. 5.1 40
Do you like investing?
7. 5.2 What is your age when you 41
first invested in something
8. 5.3 42
What is the primary objective of
investment?
9. 5.4 43
What factors you keep in mind while
investing?
10. 5.5 44
What is your source of motivation
for investing?
11. 5.6 45
Does qualification matter while
investing?
12. 5.7 46
Do you think gender and investment
have association with each other?
13. 5.8 47
Did you face any loss due to COVID
19?
14. 5.9 48
Is your monthly investment being
affected post covid-19?
15. 5.10 49
Which mode do you prefer for
investing?
16. 5.11 50
Which investing option do you prefer
to invest in?
17. 5.12 51
Is market information important to
individual investors’ investment
decisions?
18. 5.13 52
What investment option do you find
safest after covid-19?

7
19. 5.14 How much will you rate the 53
investment system in India
out of scale of 5?
20. 5.15 54
What do you think Indian economy
will rise and change the future of
investment business?

8
 CHAPTER 1
INTRODUCTION

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INTRODUCTION

A stock market is a market where the stocks are bought and sold. The stock market
has been around since 12th century France under a different name. It is also called
industrial securities market as it is the market for the trading of company stocks, i.e.
cooperate securities. These securities are listed in the stock exchange and are
traded privately.

The term stock market is often used as a synonymous to stock exchange but there is
a big difference between those two terms. Stock Exchange is a corporation, engaged
in the business of bringing buyers and sellers of stock together. It is a major part of
the stock market

The purpose of this study is to examine the investor’s perception towards the stock
market since no business can function without studying the perception of their
investors. Hence the term of ‘perception’ in this study refers to variety of actions that
are related to selling shares to the investors, while stock market refers to a place
where activities such as purchasing, selling and issuing shares under public
companies takes place.

The mostly common observed perspective of stock market investors that is seen is
the risk-perspective. Most investors invest based on the risk level. There are some
investors who like to invest in high-risk shares expecting a good return on investment
while there are those who invest in low-risk investment for stability. These people
who are directly involved in updating their knowledge through market share
application tend to be more observant in reading the market price and risks anytime.

On the other hand, investors who invest on behavior-perspective tend to invest

according to their wants and needs. They invest based on background, interest and
their rational thinking. Some even invest on instinct. They decide based on available
information or theories such as RAT (rational actor theory) or efficient market
hypothesis. The RAT allows the investors to make a proper calculation about an
investment and its returns before deciding. On the other hand, efficient market
hypothesis allows the investors to make decisions based on the level of available
information.

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 The stock market can be divided into two constituents:
1. Primary Market or New Issue Market
2. Secondary Market or Stock Exchange

A Primary Market is where assets/ stocks are sold for the first time, hence the
name New Issue Market. The essential feature of the Primary Market is to
arrange for the raising of capitals for the new corporates. Sometimes the
companies raising funds can also be an old company, looking forward to a
scope of expansion. The issues of the new firms are called ‘Initial Issues’ and
those of existing firms are termed as ‘further issues.’ Initial Capital is raised
by issuing ordinary and preference shares while issuing of further capital
involves all three types of issues; shares, preference shares and debentures.

The Stock Exchange is an organized market for the sale and purchase of
listed existing shares and other corporate securities. It serves as a platform to
bring together the buyers and seller together. The securities which are bought
and sold through the exchange, often contain shares and debentures of the
public companies. These also include Government securities and bonds
issued by municipalities, public cooperations, utility undertaking, etc.

STOCK EXCHANGES OF INDIA

In India there are two main stock exchanges:

1. Bombay Stock Exchange

2. National Stock Exchange

BOMBAY STOCK EXCHANGE (BSE)

The Bombay Stock Exchange is known as the oldest stock exchange in India,
its history tracing back to 1850s when four Gujrati and one Parsi stockholder
would gather under banyan tree in front of Mumbai’s Town Hall. The location of
these meetings gradually changed when the number of brokers constantly
increased. The group eventually moved to Dalal Street in 1874 and in 1875
became an official organization known as “The Native Share and Stock Brokers
Association”. The name later changed into Bombay Stock Exchange and in
1930, the building was established. Premchand Roychand was the leading
stockholder and he assisted in setting out traditions, conventions and
procedures for the trading of stocks.

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In 1956, the Government of India recognized Bombay Stock Exchange as the
first Stock Exchange in the country under the Securities Contracts Regulation
Act. The Bombay Stock Exchange shifted to E-trading system in 1995.

NATIONAL STOCK EXCHANGE

National Stock Exchange (NSE) is India’s largest stock exchange and world’s third
largest stock exchange in terms of transactions. Located in Mumbai, NSE was
promoted by leading Financial Institutions at the behest of the Government of India
and was incorporated in November 1992 as a tax paying company. In April 1993,
National Stock Exchange was recognized as a stock exchange under the Securities
Contracts Regulation Act 1956. NSE commenced operations on Wholesale Debts
Market (WDM) segment in June 1994 and Capital Market Segment (Equities) in
November of the same year.

NSE played a catalytic role in reforming Indian securities market in terms of micro
structure, market practices and trading volumes. NSE has set up its trading system
as a nation-wide fully automated screen based trading system. It has written for itself
the mandate to create World-class stock exchange and use it as an instrument for
change for the industry as a whole through competitive pressure. NSE is set up on a
demutualized model wherein the ownership, management and trading rights are in
the hands of three different sets of people. This has completely erased any conflict of
interest.

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CHAPTER 2
OBJECTIVES

13
OBJECTIVES OF THE STUDY

1. To study demographic factors affecting individual investor behavior.

2. To study the basis and degree of investor preference towards certain

investment options such as Gold, Stock market, Real Estate etc.

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 CHAPTER 3
LITERATURE REVIEW

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LITERATURE REVIEW

Stock market has become an attractive investment avenue for most of the investors,
and stock market has enormously grown over the years. But lot of investors fear to
invest in stock market due to the volatility often seen in share market. The risk often
undertaken by the investors in share market huge and there exist fear among the
investors of losing their hard-earned income. Even though the return, the investors
receive in stock market is high, the investors need to bear an equal amount of risk a
s well as moreover the investors must sure of which investment avenue, they are
selecting in order to ensure high returns

In the past studies, the behaviors and attitudes among investors towards stock
market were studied. The similar results demonstrated that investors usually choose
short-term investments as their choice and their decisions are based on the degree
of risk factors (Rajagopalan & Gurusamy, 2015; Trang & Tho, 2017;
Muthumeenakshi, 2017; Manimozhy & Borah, 2018; Akhtar, Azeem, Basiouni, Teoh
& Alvi, 2020; Lim & Teoh, 2021).

Furthermore, previous study had indicated that investors are well-equipped with
updated investment knowledge nowadays (Manimozhy & Borah, 2018). With an
increased level of knowledge about financial information and increased ability to
analyze the information, investors could improve the capacity to jump into risk
investment for earning high profit by managing investment efficiently.

Moreover, many studies mentioned that investment behavior influenced by nine

factors, which are security, risk tolerance, lucrative, return, investment duration,
periodic return, share preference, long-term investment, futuristuc returns and
investment dynamics (Rajagopalan & Gurusamy, 2015; Trang & Tho, 2017;
Muthumeenakshi, 2017; Manimozhy & Borah, 2018). Accordingly, it is concluded
that investors compared their returns and calculated the inverse proportionality
between time and return.

On the other hand, investors’ perceptions of the stock market also depend on the
relationship among four demographics variables, that are age, gender, education
and occupation (Rajagopalan & Gurusamy, 2015; Trang & Tho, 2017).
Consequently, this indicates that demographic variables have a crucial role in the
investors’ approach towards the stock market. In another research, the researcher
attempted to find the gap among 4C (customer solution, customer cost, customer
convenience and customer communication) in the stock market (Paul, 2014). Paul
concluded that there is a gap between expectation and experience among investors.
Any market cannot grow unless the expectations of the customers are fully filled to a
certain level.

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Empirical Studies on Investors Behaviour:

Finance is considered as the life blood of an economy and organization. So, decisions
relating to finance are very much important especially while investing in the stock
market because the level of uncertainty is very high about future outcomes. In
traditional finance, investors are considered as rational. Efficient market hypothesis
theory which is presented by Fama (1965),
describes that investors are rational, they make error-
free decisions, securities are always efficiently and fairly priced, and have
homogenous expectations with regard to securities. Behaviour finance is a new
paradigm in the world of finance. For the psychological decision process, it pursues to
understand and forecast the systematic financial market implications. It mainly deals
with applications of psychological and economic situations for accurate financial
decision making (Olsen, 1998). There are so many market anomalies that cannot be
explained and managed with the help of traditional finance theories. These anomalies
can be addressed through behavioural finance theories. Statman (2011) argues that
investor’s decisions of investment are essentially dictated by investors’ demand. For
example, investors require an outstanding rate of profitability, they expect wealth and
delight when they resign, they have to trade the market, they want to be proud of the
returns of their investment, and finally, they want to be successful in their own country.
Therefore, according to Statman, all this behaviour shows the real reasons for the rise
and fall of the price of the financial markets. In the meantime, investors realized that
individual investors who are directly involved in the stock exchange are very rare as
compare to institutional investors who are actually dominating the stock market.

Different companies issue financial statements in order to provide financial information

to stakeholders and investors.

This financial information has a significant impact on investors’ decisions of investment

(Hillenbrand & Schmeltzer, 2017). Some other researchers examine different qualities
of personality that can affect investors’ behaviour. The research findings of this study
indicate that tension and problems in the relationship with other investors and
businesses are the major factors affecting investors’ behaviour (Bucciol & Zarri, 2017).

One study is conducted on the topic of the relationship between herding behaviour
and the attitude of wine investors. The findings of this study suggest that external
herding factors influence the behaviour of wine investors (Aytaç et al., 2017).
Hossain and Nasrin (2012) in a study of Bangladesh concluded that the eight
most important factors influencing investor retention are company-specific
attributes/reputation, net
asset value, accounting information, business opportunities, publicity, the owner
structure, influence of people, and personal finance needs. One researcher found that
high-risk investors are investing more inequities in order to earn high returns
(Hoffmann et al., 2015). The findings of one research suggest that broker
17
recommendations and friends’ opinions are major while family member opinion is the
least considerable factor for investors (Ahmad, 2017).

Risk tolerance and investment decisions have a positive relationship. The risk factor
slows down the speed of the investors in the financial planning and investment
management (Grable & Lytton, 1999). Investors tend to rely on stock market
information to make investment decisions. Changes in stock prices can affect investor
behaviour (Waweru et al., 2008a). Shafi (2014) discusses the importance of coverage
of press, and Government authorities Information are very crucial factors for decision
making of the investment. Factors influencing investor stock market decisions include
price fluctuation, market, and political uncertainty, and organizational internal factors
(Waweru, et al., 2008b). Experience of different investment channels and their own
findings guide the investors to choose the best stock (Babatunde & Razali, 2016).
Different internet business activities share by investors with other investors
interested in similar trading activities. This information has greatly influenced the
behaviour of investors.

Some other researchers studied this particular topic and suggested that strong
religious be liefs have a significant impact (Lein, Turk, & Weill, 2017). Merika (2016)
believes that economic factors are affected by the overall trends of the market at the
time of the survey. Proper understanding of the financial and economic condition of
the country can enhance better investment decision-making (Babatunde & Razali,
2016). Maini (2017) explains that unpredictable prices of market area major factor
affecting individual investor’s decisions. Due to a lack of information objectivity and
enough financial experts, most decisions of the Tehran Stock Exchange are based on
political and psychological factors.

A. Demographic Factors Affecting Mutual Fund Investment Decisions

Lewellen et al. (1977) determined that demographic factors such as age, gender,
family income, and other determinants influenced individual investment decision
making. Age and income significantly influenced the selection of a mutual fund (Syama
Sunder, 1998).

Desigan et al. (2006) examined women investors’ attitudes towards investment and
concluded that women investors were reluctant to invest in mutual funds due to various
reasons, including: inadequate knowledge of the different investment instruments and
respective instrument policies; market volatility; uncertainties related to investment
and assessment of investment; redressal of grievances; etc. Generally, men tend to
be relatively confident and willing to take risk while women display greater aversion to
risk (Barber & Odean, 2001), thus, it may be presumed that men are more likely to
invest in stocks than women. Sudalaimuthu and Senthilkumar (2008) analysed
investor preference with respect to the mutual fund sector considering the following

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variables: scheme type; purchase of mutual fund units; level of uncertainty faced by
investors; origin of data on market value of units; investors’ perspective towards
variables impacting mutual fund investment; investors’ level of contentment against
different instigating factors; source of knowledge of mutual fund schemes; type of plan
held by investors; investors’ knowledge of risk category; and problems encountered
by mutual fund investors. Investors belonging to middle- and lower-income groups
were found to be relatively more risk averse. Generally, investors seek higher returns
at low risk (Kaplan & Garrick, 1981). Singh and Jha (2009) discovered that investors
chose mutual funds on the basis of the funds’ ability to provide returns, liquidity, and
security; investors were not well informed about systematic investment plans (SIPs).
Investor preference with respect to mutual funds varied with age and income. Age
significantly impacted awareness of mutual funds while gender did not show a
significant influence on awareness of mutual funds. Investors falling within the age
group 20-30 displayed the tendency to invest more in mutual funds (Raja Rehan, Saba
Naz, Imran Ume, Omais Ahmed, 2018). Binod Guragai & S. Drew Peabody (2018)
concluded that as investors grew older, planning for retirement and savings assumed
higher priority; such investors tended to invest more in stocks. There is a considerable
influence of investment options such as Bank Deposits, Insurance, PPF, NSC, Post
office, Real estate, Gold and Chit funds in investment decision making; especially
when individuals are making investments on high/low risk investment options that
helps to take better decision making.

Equity-oriented mutual funds displayed an adverse yield of around 25 percent during

March and April, as the extensive market witnessed observed symbolic downturn amid
corona virus generated recession worries. The 44-player mutual fund industry is not
resistant to the economic setback of Covid-19, and moving forward, small and mid-
cap equity schemes might carry on persisting under stress in the short to medium term
as a result of unpredictable movements in the markets (Business Standard). Alber
(2020) assessed Corona virus transmission by aggregate cases, new cases,
aggregate deaths, and new deaths. The study considered 6 worst hit countries
(according to the number of cumulative cases) daily from March 1, 2020 to April 10,
2020.

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Figure 3.1: Gold rates performance analysis of 6 months in Indian rupees:-

Image source: https://goldprice.org/spot-gold.html

Results of figure1 indicated that stock market returns appeared to be susceptible to

the total number of Corona virus cases rather than the number of daily deaths, and to
Corona virus aggregate indicators more than new ones. E-gold is believed to be a
secure investment option in times of political and financial unpredictability. It is
considered a hedge against inflation and currency degradation. It tends to gain from
extensive stimulus procedures (Economic Times, June 25, 2020). Gold is an asset
that seems to be able to grow in value even amid uncertain and difficult times. With
domestic gold prices at high record, analysts look at the upward movement lasting for
the yellow metal. During the Covid-19 outbreak, the BSE Sensex fell to 25,981 points
in March 2020 from its peak of 42,320 points. While BSE has since recovered
considerably, it is still short of its previous high. Gold, however, has surpassed all other
asset classes, having risen almost 20 percent from the lows in March, and 50 percent
in the last one year to touch a historic high of Rs. 49,000 in the domestic market.

B. Factors Influencing Individual Investor Behaviour

Empirical studies examining individual investor attitude first appeared in the 1970s.
Lewellen, Lease, and Schlarbaum in 1974 determined that age, gender, earnings and
literacy influenced investor choices for capital gains, dividend income and total
income.

Some theories on investor behaviour focus more on decision making to avoid poor
results (Robert A. Nagy and Robert W. Obenberg, 1994). Cognitive characteristics
play a significant role in individual decision making related to investing. Psychological
attributes such as the capability to take risk, mental calculation, willingness to take
financial risk and degree of risk aversion significantly affect individual investment
decisions (Dr. Aparna Samudra, Dr.M.A.Burghate, 2012).

20
 A Study on Impact of COVID- 19 on Investor Behaviour of individuals 73 Jambodekar
(1996) concluded that investors sought security of assets (especially the principal),
convertibility into cash, and growth in the amount of investment (appreciation) in order
of priority. Harlis, Peterson (1998) stated that when selecting an investment, the
investor usually focused on the element of gain, and paid less attention to inherent risk
or expenditure. A financial product is usually chosen on the basis of one’s awareness
of the product and the advantages and disadvantages it offers. For example, gold as
a primary investment might reflect preferences, beliefs or liking of female family
members for gold products and accessories (K. Senthi Kumar, C. Vijaya Banu, V.
Lakshmana Gomati Nayagam, 2008). Gormsen & Koijen (2020) have considered the
use of information from the accumulated equity market and dividend futures to
compute how investors’ anticipation about economic progress beyond boundaries
emerges as a reaction to the corona virus outbreak and subsequent policy feedback.
It has been observed by authors that change in investor perception drives the
willingness to trade and take risks.

This is mainly due to the poor performance of the stock market during the financial
crisis. Other variables impacting investor behaviour include ability of investors to buy
shares; tax implications; dividend expectations; risks involved; and capital gains. While
undesirable events may not be necessarily prevented, risk may be reduced by
investing in different, relatively secure investments with fair returns (K. Parimalakanthi
and Dr.M. Ashok Kumar, 2015). Kirshnudu.Ch, B. Krishna Reddy and G. Rama
Krishna Reddy (2009) stated that family members’ perceptions and beliefs strongly
influenced investors’ decisions. Alagu Pandian. V and G. Thangadurai (2013) found
that most investors opted for bank deposits first, then for investments in gold.
Parimalakanthi. K and Dr. M. Ashok Kumar (2015) emphasized that investors chose
to invest in banks for greater security. While men have been found to be more open
to taking risks, women have usually displayed the tendency to invest in low return but
relatively secure instruments. (Mittal, Manish; Vyas, R. K., 2011).

C. Individual Investor Perception during the Financial Crisis

Individual investors were the most affected by the financial crisis of 2007-09. The
collapse in investor wealth combined with market volatility probably led to a change in
individual investor perception and attitude (Hudomiet, Kézdi, and Willis 2011).

Organizations and individual investors were largely affected by the financial crisis of
2007–2009. Some investors might have been driven to become over cautious about
investing in equity altogether (Bucher-Koenen and Ziegelmeyer 2011).

Investor attitude and opinion change naturally during crisis, with focus shifting from
return expectations to risk-resistance (Hoffmann, Thomas Post, Pennings, 2011).
Events such as the 2008-09 financial crises may have a substantial influence on
individual investors (Kanheman and Tversky, 1972), Malmendier and Nagel (2011)
opined that occurrences such as the Great Depression of the 1930s could have long-

21
lasting effects on investor opinion and risk-bearing attitude. During a financial crisis,
investor wealth is negatively impacted and returns become uncertain. An interesting
study showed that older baby boomers (baby boomers are those born 1943- 1960)
seemed scared of the Great Recession whereas millennials (born 1980–1994),
demonstrated financial planning resiliency (Zick, Mayer, and Glaubitz 2012). Forbes
(2020) examines the impact of crises on different generations and states that
millennials witnessed three events: 9/11, during which nearly all of them were under
the age of 18; the Great Recession (2008), when a few of them were either beginning
their careers or about to complete their education; and now, the COVID-19 outbreak.
Millennials are termed ‘job baggers’ who value purpose- driven work. Saving has never
been high on their agenda, but with this pandemic, they will probably shift their priority
to saving and stability.

Workers with no formal employment contracts face job and income insecurity, and
don’t enjoy health or pension benefits, thus, they are more likely to be negatively
affected by crises like the present one (Dev and Sengupta, 2020). There has been an
increase in unemployment due to reduced production. Further, spending saw a
significant rise towards hospitalization, care, and treatment of COVID -19 patients.
Gold is a relatively safe investment considering volatile market conditions and
uncertain returns (Taufiq Choudhary, Syed S. Hassan, Sarosh Shabi, 2015).
According to Coudert and Raymond (2011) and Tuysuz (2013), at the time of financial
crisis, the price of risky financial assets goes down relatively, concurrently as the fall
in prices in one market leads to contamination in other markets, and there is herd
behaviour observed among investors which results in escalation in prices of more
secure assets (specifically gold compared to other assets). Baur and McDermott
(2010), Chan et al. (2011), Coudert and Raymond (2011), Miyazaki et al. (2012),
Miyazaki and Hamori (2013), Chen and Lin (2014), Emmrich and McGroarty (2013),
and Tuysuz (2013) furnished factual proof in favour of gold as a strong investment
during financial collapse. While stock indices of Japan, the UK, and the US exhibited
a significant drop during (insert period), gold prices witnessed a significant increase.
This may be ascribed to investors’ reaction to greater financial market unpredictability
and increased demand for gold across these countries (Taufiq Choudhry, Syed S.
Hassan, Sarosh Shabi, 2015).

The Indian Investment Sector at Present

The economy of India is characterized as a developing market economy. According to

IMF, on a per capita income basis, India ranked 139th by GDP (Nominal) and 118th
by GDP (PPP) in 2018. It is the world’s fifth largest economy by nominal GDP and the
third largest by Purchasing Power Parity. From 2014–2018, India was the world’s
fastest growing major economy, surpassing china. Historically, India was the largest
economy in the world for most of the two millennia from the 1st until 19th century. At
the ending of 2019, the novel corona virus outbreak, which began in Wuhan, China in
December, has expanded to touch nearly every corner of the globe. Hundreds of

22
thousands of people around the world have been sickened and thousands of others
have died. The WHO has declared the virus a global health emergency and rated
COVID-19’s global risk of spread and impact as “very high”, the most serious
designation the organization gives. In just weeks, the corona virus pandemic has
shaved off nearly a third of the global market capital. The Indian equity market bounced
back valiantly, but the Sensex still closed 20% below the peak achieved two months
ago in January 2020.Investors can get some cold comfort that other markets have
fallen more. The spread of the virus has triggered panic across the world and shaken
the confidence of investors. According to Anil Sarin, CIO Equities, Centrum Broking,
“Earlier, only the equity and debt markets were impacted by the COVID-19 scare; now
the commodities and currency markets are in turmoil due to the crude oil war (Between
Saudi Arabia and Russia). After a crash of this magnitude, market confidence usually
does not come back soon. After 12th of March 2020, only 29%of the active cases of
corona virus were in China and remaining 71% were in other parts of the world. So,
corona is no more a Chinese problem. Impact of this on global economy growth is
going to be huge. The organization for economic cooperation and development
(OECD) has halved the global GDP growth projection for 2020 due to corona virus.
The disease will obviously impact the Indian economy as well. No stock investors are
escaped the carnage in 2020, though some may have incurred bigger losses, possibly
due to overexposure to equities, wrong investment choices or faulty advice.

It would be an understatement to say that the Covid-19 scare has dealt a significant
blow to economic activities in India across domains. The strangulation of mobility,
along with the subsequent supply chain impairment, has caused businesses across
sectors to scale down their operations while the corporate sector has enacted work
from home policies. While the outbreak has undeniably affected the financial
ecosystem in the country, the series of scandals that it witnessed even before the entry
of corona virus in India had already shaken the confidence of investors and lenders
alike.

Now the cumulative burden of mounting conservatism among the investor community
has fallen upon the shoulders of the start up ecosystem, weighing down the growth of
more than 50,000 Indian ventures. The muted economic activity has only served to
aggravate the challenges for the nation’s start-ups. The most affected are the ventures
that are in their growth-stage and are waiting to raise the next rounds of funding.
Further, a prolonged lockdown may cause funding timelines to be delayed, even more,
adding to the worries of ventures that were looking to leverage the capital infusion to
scale their operations. On the other hand, while the prospects of start-ups looking to
raise fresh funding indeed look grim, they are not altogether absent. This is because
leading investor bodies are leveraging the online ecosystem to connect with their
potential investee companies, keeping the investment machinery in motion amid the
lockdown.

23
The Future Is Digital

The cessation of business operations that relied on physical activity has been
accompanied by a paradigm shift across sectors. Under this, modern enterprises have
shifted their playing field to the digital domain to conduct business as usual while tech-
intensive industries are registering a boom. The Indian technology sector, one of the
country’s most dynamic sectors, is home to over 9,000 technology-led start-ups in the
ecosystem. With the country under lockdown, it is this sector that is coming to the
rescue of quarantined people on the back of cutting-edge digital solutions.

In the wake of the implementation of remote working policies across sectors, video
conferencing apps such as Zoom have witnessed an immense increase in revenue
and customer base. The app added over 2.2 Mn active users in February this year.
With the pandemic bringing to light new innovations powered by new-age technology,
the future will see start-ups in the digital and technology sector flourish. Recently, NITI
Aayog has recently on boarded eight tech innovators from across India to optimise the
country’s tech infrastructure in a bid to enhance the country’s stance against the
incumbent crisis.

24
 CHAPTER 4
RESEARCH METHODOLOGY

25
Research Methodology

Research refers to the systematic investigation into and study of materials and
sources in order to establish facts and reach new conclusions. Research comprises
"creative work undertaken on a systematic basis to increase the stock of knowledge,
including knowledge of humans, culture and society, and the use of this stock of
knowledge to devise new applications." It is used to establish or confirm facts,
reaffirm the results of previous work, solve new or existing problems, support
theorems, or develop new theories. In the broadest sense of the word, the definition
of research includes any gathering of data, information, and facts for the
advancement of knowledge. It is a process of steps used to collect and analyze
information to increase our understanding of a topic or issue". It consists of three
steps: pose a question, collect data to answer the question, and present an answer
to the question.

The process used to collect information and data for the purpose of making business
decisions is called as Research Methodology. The methodology may include
publication research, interviews, surveys and other research techniques, and could
include both present and historical information.

The purpose of Methodology is to describe the purpose involved in the Research

Work. This includes the overall Research Design, the data collection method.
Research Methodology refers to the various sequential steps to be adopted by a
Researcher in studying a problem with certain object or objective in view.

Qualitative, quantitative and mixed-methods are different types of

methodologies, distinguished by whether they focus on words, numbers or both.
This is a bit of an oversimplification, but its a good starting point for
understandings. Let’s take a closer look.

Qualitative research refers to research which focuses on collecting and

analyzing words (written or spoken) and textual data, whereas
quantitative research focuses on measurement and testing using
numerical data. Qualitative analysis can also focus on other “softer” data points,
such as body language or visual elements. It’s quite common for a
qualitative methodology to be used when the research aims and objectives are
exploratory in nature.

For example, a qualitative methodology might be used to understand peoples’

perceptions about an event that took place, or a candidate running for president.

Contrasted to this, a quantitative methodology is typically used when the

research aims and objectives are confirmatory in nature. For example, a
quantitative methodology might be used to measure the relationship between
two variables (e.g. personality type and likelihood to commit a crime) or to test

26
a set of hypotheses. As you’ve probably guessed, the mixed-
method methodology attempts to combine the best of both qualitative and
quantitative methodologies to integrate perspectives and create a rich picture.
Research methodology simply refers to the practical “how” of any given piece of
research. More specifically, it’s about how a researcher systematically designs a
study to ensure valid and reliable results that address the research aims and
objectives.

For example, how did the researcher go about deciding?

 What data to collect (and what data to ignore)

 Who to collect it from (in research, this is called “sampling design”)

 How to collect it (this is called “data collection methods”)

 How to analyse it (this is called “data analysis methods”)

Research Process

The research process involves identifying, locating, assessing, and analyzing the
information you need to support your research question, and then developing and
expressing your ideas. The research process can be broken down into seven steps,
making it more manageable and easier to understand.

Figure 4.1: The Research Process

27
Step 1: Identify or Define the Problem

The first step in the process is to identify a problem or develop a research question.
The research problem may be something the agency identifies as a problem, some
knowledge or information that is needed by the agency, or the desire to identify a
recreation trend nationally.

Step 2: Locate

Now that the problem has been identified, the researcher must learn more about the
topic under investigation. To do this, the researcher must review the literature related
to the research problem. This step provides foundational knowledge about the problem
area. The review of literature also educates the researcher about what studies have
been conducted in the past, how these studies were conducted, and the conclusions
in the problem area.

Step 3: Clarify or Select the Problem

Many times the initial problem identified in the first step of the process is too large or
broad in scope. In step 3 of the process, the researcher clarifies the problem and
narrows the scope of the study. This can only be done after the literature has been
reviewed. The knowledge gained through the review of literature guides the researcher
in clarifying and narrowing the research project.

Step 4: Clearly Define or Organize Terms and Concepts

Terms and concepts are words or phrases used in the purpose statement of the study
or the description of the study. These items need to be specifically defined as they
apply to the study. Terms or concepts often have different definitions depending on
who is reading the study. To minimize confusion about what the terms and phrases
mean, the researcher must specifically define them for the study. By defining the terms
or concepts more narrowly, the scope of the study is more manageable for the
programmer, making it easier to collect the necessary data for the study. This also
makes the concepts more understandable to the reader.

Research projects can focus on a specific group of people, facilities, park

development, employee evaluations, programs, financial status, marketing efforts, or
the integration of technology into the operations. For example, if a researcher wants
to examine a specific group of people in the community, the study could examine a
specific age group, males or females, people living in a specific geographic area, or a
specific ethnic group. Literally thousands of options are available to the researcher to
specifically identify the group to study.

28
The research problem and the purpose of the study assist the researcher in identifying
the group to involve in the study. In research terms, the group to involve in the study
is always called the population.

Defining the population assists the researcher in several ways. First, it narrows the
scope of the study from a very large population to one that is manageable. Second,
the population identifies the group that the researcher's efforts will be focused on within
the study. This helps ensure that the researcher stays on the right path during the
study. Finally, by defining the population, the researcher identifies the group that the
results will apply to at the conclusion of the study

Step 5: Present the Instrumentation Plan

The plan for the study is referred to as the instrumentation plan. The instrumentation
plan serves as the road map for the entire study, specifying who will participate in the
study; how, when, and where data will be collected; and the content of the program.
This plan is composed of numerous decisions and considerations.

The researcher develops the plan for the walking program, indicating what data will be
collected, when and how the data will be collected, who will collect the data, and how
the data will be analyzed. The instrumentation plan specifies all the steps that must be
completed for the study. This ensures that the researcher has carefully thought
through all these decisions and that she provides a step-by-step plan to be followed in
the study. Once the instrumentation plan is completed, the actual study begins with
the collection of data. The collection of data is a critical step in providing the information
needed to answer the research question. Every study includes the collection of some
type of data—whether it is from the literature or from subjects—to answer the research
question.

Data can be collected in the form of words on a survey, with a questionnaire, through
observations, or from the literature. The researcher collects these data at the first
session and at the last session of the program. These two sets of data are necessary
to determine the effect of the walking program on weight, body fat, and cholesterol
level. Once the data are collected on the variables, the researcher is ready to move to
the final step of the process, which is the data analysis.

Step 6: Analyze or Evaluate

All the time, effort, and resources dedicated to steps 1 through 7 of the research
process culminate in this final step. The researcher finally has data to analyze so that
the research question can be answered. In the instrumentation plan, the researcher
specified how the data will be analyzed. The researcher now analyzes the data
according to the plan. The results of this analysis are then reviewed and summarized
in a manner directly related to the research questions.

29
Research Design

A research design is the set of methods and procedures used in collecting and
analyzing measures of the variables specified in the research problem research. The
design of a study defines the study type (descriptive, correlation, semi-experimental,
experimental, review, meta-analytic) and sub- type (e.g., descriptive-longitudinal
case study), research problem, hypotheses, independent and dependent variables,
experimental design, and, if applicable, data collection methods and a statistical
analysis plan. Research design is the framework that has been created to find
answers to research questions. There are many ways to classify research designs,
but sometimes the distinction is artificial and other times different designs are
combined. Nonetheless, the list below offers a number of useful distinctions between
possible research designs. A research design is an arrangement of conditions or
collections.

A research design is a systematic approach that a researcher uses to conduct a

scientific study. It is the overall synchronization of identified components and data
resulting in a plausible outcome. To conclusively come up with an authentic and
accurate result, the research design should follow a strategic methodology, in line
with the type of research chosen. To have a better understanding of which research
paper topic, to begin with, it is imperative to first identify the types of research.

Types of Research Design:

1. Exploratory Research
Exploratory research, as the name implies, intends merely to explore the research
questions and does not intend to offer final and conclusive solutions to existing
problems. This type of research is usually conducted to study a problem that has not
been clearly defined yet.

 Descriptive Research
Descriptive research can be explained as a statement of affairs as they are at
present with the researcher having no control over variable.

Moreover, “descriptive studies may be characterized as simply the attempt

to determine, describe or identify what is, while analytical research attempts
to establish why it is that way or how it came to be.

Data Collection

Data collection is the process of gathering and measuring information on variables of

interest, in an established systematic fashion that enables one to answer stated
research questions, test hypotheses, and evaluate outcomes. A formal data
collection process is necessary as it ensures that the data gathered are both defined
and accurate and that subsequent decisions based on arguments embodied in the

30
findings are valid. The process provides both a baseline from which to measure and
in certain cases an indication of what to improve.

Methods or Sources of Data Collection:

There are two types of data collection methods namely primary data collection and
secondary data collection.

Primary data

Primary Data is the data which is originally collected by an investigator or agency for
the first time for specific purpose. The source from which the primary data is
collected is called the primary source. Such data is original in character as it is
collected for the first time. It is first-hand information. Primary Data once collected
and published becomes Secondary Data. There are many methods to collect primary
data and the main methods include:

 Questionnaires
 Interviews
 Group interviews
 Observation

Secondary data

The data which is not directly collected but rather obtained from the published or
unpublished sources is known as Secondary Data. It is also known as Second Hand
Data. These are not original data since the enumerators or investigators themselves
do not collect these data. They simply make use of the data collected by the others.
Common sources of secondary data include:

1. Census

2. Large surveys

3. Internet

4. Journals

5. Books

6. News papers

7. Organizational records.

31
SAMPLE:

A sample is defined as a smaller set of data that a researcher chooses or selects from
a larger population by using a pre-defined selection method. These elements are
known as sample points, sampling units, or observations. Creating a sample is an
efficient method of conducting research. Sampling methods are characterized into two
distinct approaches: probability sampling and non-probability sampling.

Sample Size: 50

SAMPLING METHOD:

The process of deriving a sample is called a sampling method. Sampling Method used
in this report is Simple random sampling i.e. the most straightforward way of
selecting a sample is simple random sampling. In this method, each member has an
equal chance of being a part of the study. The objects in this sample population are
chosen purely on a random basis, and each member has the same probability of being
selected.

Thus, the data for is collected through primary sources (questionnaire) and the
research is descriptive in nature. The study was conducted among 50 individuals.
The data has been collected in the form of questionnaire from these 50 respondents
on various factors that can help me determine the policy.

Methods Used

Primary method is used in the collection of data for the report.

Primary data includes the responses taken from the individuals with the help of
questionnaire as the people are the potential investors and their perception has to be
analysed.

Primary Data used:

Survey was done with a sample size of 50 respondents.

Research Design Used:

This research is based on descriptive research design. It shows the current

sentiment of employees. The survey was done to check the opinion of people.

32
RESEARCH PROCESS IN THIS PROJECT/STUDY

Research Type Descriptive

Data Collection Primary Data

Population People around the surrounding

Sample Size 50

Research Tools Pie Chart

Tools of Analysis Percentage and Ratios

Table 4.1: Research Process

33
 CHAPTER 5
ANALYSIS AND INTERPRETATION OF
DATA

34
ANALYSIS AND INTERPRETATION OF DATA

Analysis means ordering, manipulating and summarizing of data to obtain answers

to research questions. Its purpose is to reduce data to intelligible and interpretable
form so that the relations of research problems can be studied and tested.
Interpretation gives the results of analysis, makes influences pertinent to the
research relations studied, and draws conclusions about those relations.

Analysis and interpretation provide answers to the research questions postulated in

the study.

35
 1. Do you like investing?

a. Yes

b. Maybe

Options Responses

YES 47

NO 3

Table 2

Figure 6

Interpretation:-

As shown in the chart there are 94% of people that like to invest somewhere or the
other while only 6% people are confused whether they like or just they know about
investing . The reason for investing may be because they like the challenges in terms
of strategy. Whenever there is capital allocation, one need to see all the options and
try to understand which one has the best relation in terms of return/risk. Another
reason could be seeing the power of compounding returns that over time multiplies
one’s capital over and over again. Finally if you’re successful, the returns and profits,
could contribute to your stability and financial independency. Early retirement is a
dream that could be easier by investing.

36
 2. What is your age when you first invested in something?

a. 25- 40

b. 40 - 55

c. Above 55

Options Responses

21-40 29

40-55 12

Above 55 9

Table 3

Figure 7

Interpretation:-

Age is the very important factor in affecting investment decision. Generally, the
younger you are, the riskier your investment portfolio can be. The reason being, that
the younger a person is, the more time they have to recover and recoup any losses
from things like a sudden market downturn. Someone who's a few years away from
retirement, however, won’t have the necessary time it often takes to recover from a
plunge in the markets. As shown above also 58% individuals are from the younger
age group while there are only 24% investors in the adult age bracket and only 18%
from the older age group who invest in market to get gains or profits. This reveals that
the younger age group has more chances and take more interest in investing in India.

37
 3. What is the primary objective of investment?

a. Future security

b. Good returns

c. Liquidity

d. Tax savings

e. Children career

Options Responses

Future 8
security

Good 12
returns

Liquidity 5

Tax 15
savings
Figure 8

Children 10
career

Table 4

Interpretation:-

The reason behind investing is of very much importance as why a person invest in
particular stream. In the analysis there are 24% people who invest as they want good
returns and with the objective of security there are 16% responses followed by
percentage of respondents in liquidity, tax savings and children career are 10%, 30%
and 20% respectively.

38
 4. What factors you keep in mind while investing?

a. Safety

b. Liquidity

c. Tax savings

d. Affordability

e. Simplicity

Options Responses

Safety 8

Liquidity 3

Tax savings 15

Affordability 12

Simplicity 12
Figure 9

Table 5

Interpretation:-

The above pie-chart shows that the factor that people think of while investing in India
has a huge ratio of 30% in tax savings as they want to save the tax so they make
investment decision in that stream only while 16% people think of safety and security
purpose while investing. Followed by the ratio 6% people think of the liquidity ratio
while taking the investment decision and 24% people think affordability and simplicity
each as their main basis for taking any decision.

39
 5. What is your source of motivation for investing?

a. Self awareness

b. Brokers advise

c. Financial advisor

d. Friends or relatives

e. Media

Options Responses

Self 8
awareness

Broker advisor 4

Financial 21
advisor
Figure 10

Friends or 10
relatives

Media 7

Table 6

Interpretation:-

Analysis shows that 16% people have their own source of motivation that is self
awareness. The major source of information or motivation is the financial advisor help
that comes with 42%. The next motivation level that is 20% comes from the
surroundings that are friends and the nearby families or connections. Only 14% and
8% people get motivated via media and brokers advise respectively.

40
 6. Does qualification matter while investing?

a. Yes

b. No

Options Responses

Yes 16

No 34

Table 7

Figure 11

Interpretation:-

It is worth mentioning here that in order to invest in the shares or in any other
investment options, you do not need to have any basic qualification. That is in other
words, anyone who has the necessary funds can invest in the share market and as
such your qualification does not really matter much. Although it is advisable that in
order to be successful in the stock market, you should have at least certain minimum
knowledge about the stock market. In this way you avoid the losses in the stock market
to a considerable extent. Here, 32% investors feel that study matters while 68% feel
that education is not really what you should have it is the application what you need to
invest in.

41
 7. From where do you get information about stock market?

a. Internet

b. Newspapers

c. Brokers

d. Television

e. Other sources

Options Responses

Internet 23

Newspapers 5

Brokers 10
Television 8
Other Sources 4

Table 8
Responses

Internet Newspapers Televisions Brokers Other Sources

Figure 12

42
 Interpretation:-

From the above figure we interpret that 46% of the people find out about the
trends of stock market from the internet; 10% of them use newspapers; 20%
people from share brokers: 8% from televisions and remaining 16% from other
sources.

8. What are your various sources for buying shares?

a. Broker Co.
b. Banks
c. Private Brokers
d. IPOs

Options Responses

Broker Co. 15

Banks 12
Private Brokers 5
IPOs 18

Table 10

Responses

Broker Co. Banks Private Brokers IPOs

Figure 14
.

43
 9. Which mode do you prefer for investing?

a. Online

b. Offline

Options Responses

Online 27

Offline 23

Table 11

Figure 15

Interpretation:-

21stcentury is an era of digitization, where everything is available online from

groceries to gadgets to stocks. Individuals today are cognizing the benefits of
digitization and asking for more personalised dominion. But still when it comes to
India people have a perception towards online payments and deals that they are not
safe. When it comes to investment decisions 54% of respondents prefer to buy and
sale offline while 46% are opting for online mode of payments and receipts.

44
 10. Which investing option do you prefer to invest in?

a. Stock market

b. Bank deposit

c. Real estate

d. Mutual fund

e. Insurance

f. Others

Options Responses

Stock 7
Market

Bank 8
Deposit

Real 5
Estate

Mutual 12
Fund

Insurance 16 Figure 16
Others 2
Table 12

Interpretation:-

Financial impact due to the pandemic caused job loss, reduced salary incomes and
made business continuity an uncertainty. This made investors seek safety and wealth
preservation. Investors are seeking safety, wealth preservation and wanting a strategy
that is sustainable. Even, if this comes at a cost of lower returns. Today investors are
looking for SEBI registered investment advisors, Certified Financial Planners, Certified
Wealth Managers and Chartered Financial Analysts who have the qualification,
experience and certification. The analysis shows that 14% respondents are investing
in stock market while 32% respondents are finding insurance as the most preferred
investment field and best decisions seeing ongoing crisis. Next is 24% the mutual
fund sector people want to invest in. Whereas16%, 10% and 4% of respondents are
going for bank deposits, real estate and other (which maybe be gold) respectively.

45
 11. Is market information important to individual investors’ investment decisions?

a. Very important

b. Quite important

c. Less important

d. Unimportant

Options Responses

Very important 24

Quite important 16

Less important 8

Unimportant 2

Table 13 Figure 17

Interpretation:-

Based on the above survey results, it can be concluded that market information is
very important for individual investors’ investment decisions. Among the 50 individual
investors who participated in the survey, 48% felt that market information is very
important for individual investors’ investment decisions, which contains more than
half of the respondents. 16 people think that market information is quite important for
individual investors’ investment decisions, accounting for 32%. 8 people think that
market information is less important to individual investors’ investment decisions,
accounting for 16%, while only 2 people think that market information is unimportant,
accounting for 4%. On the whole, it is also in line with the information preference of
individual investors mentioned above.

46
 12. What investment option do you find safest after covid-19?

a. Stock market

b. Bank deposit

c. Real estate

d. Mutual fund

e. Insurance

f. Others

Options Responses

Stock market 5

Bank deposit 10

Real estate 5

Mutual fund 9

Insurance 19

Figure 18
Others 2

Table 14

Interpretation:-

38% respondents are finding insurance as the most preferred investment field and
best decisions seeing ongoing crisis. Next is 20% the bank deposit sector people
want to invest in. Whereas 18%, 10% and 4% of respondents are going for mutual
fund, real estate and stock market each and others (which maybe be gold)
respectively.

47
 13. How much will you rate the investment system in India out of scale of 5?

a. 0

b. 1

c. 2

d. 3

e. 4

f. 5

Options Responses

0 3

1 8

2 5

3 18

4 12

5 4

Table 15 Figure 19

Interpretation:

People think Indian investment or the financial industry as an average industry, it

needs to develop a lot although it has potential, but at present it is still lacks at.

48
 14. What do you think Indian economy will rise and change the future of
investment business?

a. Increase

b. Stay the same

c. Decrease

d. Uncertain

Options Responses

Increase 7

Stay the same 15

Decrease 10

Uncertain 18

Table 16 Figure 20

Interpretation:-

A majority of impact investors (30%) expect to maintain their 2020 investment plans,
seeking to invest the same amount of capital that they had initially expected to invest
and thinks that the economy will stay the same. Relatively even (14%) expect to
increase and decrease (20%) . Notably, as a result of COVID-19, as compared to
developed-market-focused organizations 36% thinks that the economy condition is uncertain
and can’t say or predict the future.

49
 CHAPTER 6
LIMITATIONS OF THE STUDY

50
Limitations of the Study

1. Due to time constraints the sample size had to be confirmed to 50.

2. The respondents have replied to the queries recalling from their memory.
Therefore recall bias and personal bias are possible.

3. Since the data was collected using a schedule, the interviewer’s inability to
understand and record the responses correctly is possible.

4. The respondents were unable or unwilling to give a complete and accurate

response to certain questions.

5. The inability of people to understand the questionnaire is possible.

6. Due to pandemic and getting less exposure of the surrounding there are some
the needs and complaints being left out.

7. The time to collect the responses from the individual investors is less so the
chances of ticking wrong answers are possible.

8. The study has been limited selected investment avenues.

9. This study is confined to only one city,

51
CHAPTER 7
FINDINGS

52
Findings

1. The average preference rating scores across all three investment avenues i.e.
Gold, Real Estate and Equities are lower. This may be attributed to lockdown
restrictions and reduction or loss of income due to job losses.

2. People think of safety and returns as the factor and objective of investing.

3. Income has been a significantly influential factor pertaining to investor

preferences.

4. People find online mode more advantageous than the offline.

5. Investors invest in by taking advises from the financial advisors and not from
the media.

6. As seen in the data, majority of the people will change their portfolio post COVID
19. This indicates the impact of market volatility on the investments. People are
not willing to take any short term risks and want to shift their investments into
less risky avenues.

7. This change in portfolio is majorly due to changes in the income levels during
the pandemic period. Job loss, salary cuts, low business/no business are some
factors which have hampered the portfolio of investors.

8. In spite of change in income levels, many respondents have made investments

even during the pandemic in mutual funds, NSC, equity markets. This indicates
that these respondents have leveraged the opportunity of market volatility as it
is always good to make investments when the market dips.

9. Post COVID, respondents are willing to invest in Fixed Income Securities as

they carry the least risk and give decent returns as compared to the risk taken.

10. Due to the high market volatility, respondents have decided to secure their
money and only invest in avenues which fetch guaranteed return.

11. But the interesting part is, in spite of being risk averse; respondents have given
safety the highest weight age followed by returns. This indicates the

53
 psychological aspect of Indian investors wherein they want safety and returns
without incurring risk.

12. Mutual funds being a popular investment avenue, respondents do not want to
invest. This indicates insurance a safer investment preferences and investors
benefit being a priority.

54
 CHAPTER 8
RECOMMENDATIONS AND
CONCLUSION

55
 Recommendations

1. Investors are recommended to take a little risk in their portfolio so as to

maximize their own returns since the markets have shown recovery now.
2. Therefore, taking calculated risks should fetch them good returns.
Portfolio managers/Fund managers are recommended to diversify the
risks and encourage risk adverse investors to take on some risk in their
portfolio.
3. Also, newer investment avenues can be explored which the investors
are not aware of and can be encouraged to include those in the portfolio.

Conclusion

At last the conclusion of the project is that most of the investors invest their savings in
Shares by getting their information mostly from the internet followed by brokers,
television and other sources. Most people prefer to invest their savings in banks due to
low risk and regular returns. Mutual Fund investments and stock market investments
have also received positive response from the respondents. The fundamental and
technical analysis provided by the broker companies also plays a very vital role in the
base of investment in shares. Most investors perceive that the level of sensex at
present is high and thus tend not to invest in that period of time. But on the other hand
there are also those investors who will invest no matter the degree of risk involved in
hopes for higher gains in the future.
As investors of today’s era hardly have time to observe the shares regularly, they either
hire brokers or use the demat banking services provided by the banks to provide broker
services that aid them in observing the pattern of the stocks. Investors rely on news and
internet to keep track of the shares while investing.

56
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8. Hoffmann, A, Post, T & Pennings, J, 2011, ‘Individual Investors and the

Financial Crisis’, Journal of Banking and Finance, 37(2013)60-70. DOI:
http://dx.doi.org/10.1016/j.jbankfin.2012.08.007

9. Lewellen, WG, Lease, RC & Schlarbaum, GG, 1977, ‘Patterns of investment

strategy and behavior among individual investors’, The Journal of Business,
50(3), 296-333. DOI: https://doi.org/10.1086/295947

10. Nagy, RA & Obenberg, RW, 1994, ‘Factors influencing individual investor
behavior’, Financial Analysts Journal, 50(4), 63-68. DOI:
https://doi.org/10.2469/faj.v50.n4.63

11. https://ro.uow.edu.au/cgi/viewcontent.cgi?article=2197&context=aabfj

12. https://www.financialexpress.com/money/impact-of-covid-19-on-the-
investment-pattern-legacy-planning-of-hnis/2224158/

13. https://www.worldscientific.com/doi/10.1142/S2424786320500401

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14. https://economictimes.indiatimes.com/wealth/invest/top-10-investment-
options/articleshow/64066079.cms

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 ANNEXURE

QUESTIONNAIRE

1. Do you like investing?

a. Yes
b. No

2. What is your age?

a. 21- 40

b. 40 - 55

c. 60+

3. What is the primary objective of investment?

a. Future security

b. Good returns

c. Liquidity

d. Tax savings

e. Children career

4. What factors you keep in mind while investing?

a. Safety

b. Liquidity

c. Tax savings

d. Affordability

e. Simplicity

59
 5. What is your source of motivation for investing?

a. Self awareness

b. Brokers advise

c. Financial advisor

d. Friends or relatives

e. Media

6. Does qualification matter while investing?

a. Yes

b. No

7. Do you think gender and investment have association with each other?

a. Yes, male have better understanding about investment

b. No, gender and investment are not related

8. Did you face any loss due to COVID 19?

a. Yes

b. No

9. Is your monthly investment being affected post covid-19?

a. Yes

b. No

60
 10. Which mode do you prefer for investing?

a. Online

b. Offline

11. Which investing option do you prefer to invest in?

a. Stock market

b. Bank deposit

c. Real estate

d. Mutual fund

e. Insurance

f. Others

12. Is market information important to individual investors’ investment

decisions?

a. Very important

b. Quite important

c. Less important

d. Unimportant

13. What investment option do you find safest after covid-19?

a. Stock market

b. Bank deposit

c. Real estate

d. Mutual fund

e. Insurance

f. others

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 14. How much will you rate the financial system in India out of scale of 5?

a. 0

b. 1

c. 2

d. 3

e. 4

f. 5

15. What do you think Indian economy will rise and change the future of investment
business?

a. Increase

b. Stay the same

c. Decrease

d. Uncertain

62