bank vs po fd
TRANSCRIPT
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INTRODUCTION
INTRODUCTION TO THE STUDY:
Investment is parting with one’s fund, to be used by another party, user of fund, for
productive activity. It can mean giving an advance or loan or contributing to the
equity (ownership capital) or debt capital of a corporate or non-corporate business
unit.
Generalized, investment means conversion of cash or money into a monetary asset or
a claim on future money for a return. This return is for saving, parting with saving or
liquidity and lastly for taking a risk involving the uncertainty about the actual return,
time of waiting and cost of getting back funds, safety of funds, and risk of the
variability of the return.
The cornerstone of any investment strategy is to maximize the return while
maintaining a tolerable risk. The process of allocating assets among several
investment categories is a way of achieving the goal. Younger people can assume
greater risk than one who is retired; a highly paid executive will be less dependent on
current portfolio income than will a disabled person on workmen’s compensation and
so forth.
The goal of an individual may be current income, capital appreciation or an
acceptable balance. If the investor decides on capital appreciation, the investors
should have the personality to ride out major decline in the market . These are
decisions that only the investor can make after careful consideration.
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CHARACTERISTICS OF INVESTMENT:
1. Risk:
The risk depends of maturity, creditworthiness, nature of instrument, tax liability,
variability of returns, etc
2. Return:
A major factor influencing the pattern of investment is its return, which is the yield
plus capital appreciation.
3. Safety:
The safety of capital is the certainty of return of capital without loss of money or
time involved.
4. Liquidity:
If a capital asset is easily realizable, saleable or marketable, then it is said to be
liquid.
An investor generally prefers liquidity for his investments, safety of his funds, a good
return with a minimum risk and maximization of return.
CLASSIFICATION OF INVESTORS
Investors can be classified into different groups depending on their attitude towards
risk, expectation etc., Each investor also has an indifference point at which his own
expectation of return matches with the risk that he can take.
The investor should also be able to assess his own behavior pattern before he aims at
a particular goal, which he wishes to attain. In some cases, most of the investors are
willing to sacrifice some expected income or return if the income is certain. The
higher the income group of an investor the greater will be his desire for purchasing
assets which will give him a favorable tax treatment.
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Classification of Investors
TYPE RISK ACCEPTABLE TYPE OF INVESTMENT BEHAVIOR
RISK AVERTERS LOW RISK LIFE INSURANCE ,UNIT
CERTIFICATES, GOVT CERTIFICATES.
WILL PAY LESS FOR AN UNCERTAIN
RETURN
RISK NEUTRALS
MEDIUM RISK LIFE POLICIES, FIXED DEPOSITS ,MUTUAL FUNDS WILL PAY EQUAL TO
EXPECTED RETURN
RISK TAKERS HIGH RISK COMMON STOCKS, BONDS,
CONVERTIBLE SECURITIES
WILL PAY MORE THAN EXPECTED
RETURN.
PSYCHOLOGICAL ASPECTS OF INVESTING:
It is relatively easy to gain a theoretical understanding of market movements up and
down. Beating the market on paper is not that difficult, but actually putting that
knowledge to work in the market place on a day-to-day basis is a more difficult task.
Common sense dictates that periodic monitoring of portfolio performance is a
necessary part of the investment process, but if we get too close to the market, the
tendency is to respond to the events and prices instead of carefully laid criteria. The
asset allocation approach as described here makes a valuable contribution to this on
going psychological battles that investors have to face. First, the very adoption of the
principles of allocation implies that establishment of reasonable investment goals and
the employment of a plan. If the investor can make a plan and stick to it, he is far less
likely be side tracked by the latest news and investment fashion.
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INVESTMENT AVENUES
1.2.1 FIXED DEPOSIT
The term "fixed" in fixed deposits denotes the period of maturity or
tenor. Fixed Deposits, therefore, presupposes a certain length of time for which the
depositor decides to keep the money with the bank and the rate of interest payable to
the depositor is decided by this tenor. The rate of interest differs from bank to bank
and is generally higher for private sector and foreign banks. This, however, does not
mean that the depositor loses all his rights over the money for the duration of the
tenor decided. The deposits can be withdrawn before the period is over. However,
the amount of interest payable to the depositor, in such cases goes down (usually 1%
to 2% less than the original rate).
BENEFITS OF FIXED DEPOSIT:
Fixed deposits remain the most popular instrument for financial
savings in India. They are the middle path investments with adequate returns and
sufficient liquidity. There are basically three avenues for parking savings in the form
of fixed deposits. The most common are bank deposits for nationalized banks, the
yield is generally low with a maximum interest of 8 to 8.5% per annum for a period
of three years or more.
As opposed to that, NBFCs and company deposits are more attractive.
The idea is to select the right company to minimize the risk. Company deposits as a
saving instrument have declined in popularity over the last three years.
1.2.2 POST OFFICE SAVING SCHEMES:
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Post office is a very safe and secure investment avenue. The money is
used in the development of the society as a whole, while it provides steady returns.
The biggest advantage of investing in post office schemes is the tax benefit that they
provide. Thus a lot of savings go through this channel to dual advantage- tax benefits
and steady returns.
There are many schemes available in post office savings schemes. The
schemes are
1. National saving schemes.
2. Kisan vikas patra.
3. Monthly income schemes.
4. Recurring deposit.
5. Post office savings deposit.
1.2.3 LIFE INSURANCE:
A contract of insurance can be defined as a co-operative device to spread
the loss caused by a particular risk over a number of persons who are exposed to it
and who agree to ensure themselves against that risk, Risk is uncertainty of a
financial loss. Every risk involves of the loss of one kind or other. The object of the
insurance is to spread the loss over a large number of the insurance is to spread the
losses over a large number of persons who are agreed to co-operative each other at
the time of loss. Though the risk cannot be averted yet the loss occurring due to a
certain risk can be Distributed among the agreed persons. Such persons agree to
share the loss because the chances of loss i.e., The time and amount to a persons are
not known.
Benefits of Insurance:
1. Risk is covered.
2. Capital Appreciation of funds.
3. Guaranteed benefits, etc
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1.2.4 MUTUAL FUNDS
A Mutual Fund is a trust that pools the savings of a number of investors who
share a common financial goal. The money thus collected is then invested in capital
market instruments such as shares, debentures and other securities
The income earned through these investments and the capital appreciations
realized are shared by its unit holders in proportion to the number of units owned by
them.
1.2.5 SHARES/DEBENTURES (NEW ISSUE MARKET):
New issue market deals with ‘new’ Securities, i.e., securities which where not
previously available and are offered to the investing public for the first time. The
market, therefore, derives its name from the fact that it makes available a new block
of securities for the public subscription. The stock market on the other hand, is a
market for ‘old securities’ i.e., those, which have already been issued and have been
granted stock exchange listing.
Secondary Market
Stock Exchange is an organized market place where securities are traded.
These securities are issued by the Government, semi-Government Bodies, Public
sector undertakings and companies for borrowing funds and raising resources.
Securities are defined as any monetary claims (promissory notes or I.E.) and include
stock, shares, debentures, bonds etc. if these securities are marketable as in the case
of Government stock; they are transferable by endorsement and are like movable
property. They are tradable on the stock Exchange.
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Benefits of Investment in Shares
1. Investors may be entitled to bonus issue that may be made by the company
out of the free reserves accumulated through retained earnings over years.
2. Rights: The equity shareholders may be entitled to any further issue of
Capital, either as debentures, fully or partly convertible debentures or equity
shares, as may be made by the company, depending on its requirements.
3. The equity shareholders being the owners of the company have the right to
get the interim dividend within a period of 42 days from the date of
declaration of dividends.
4. Any investment in shares is wealth of the investor, which is free from wealth
tax.
5. In addition to all the above benefits, the investor in equities enjoys some
unique advantages of safety, liquidity and marketability. The investor can
readily find a market for selling the equity shares in the Stock Market and
encasing the investments at short notice.
1.2.6 GOLD
There are a number of ways of buying gold for investment purposes.
Jewellery is not dealt with in this section, although in many countries it is purchased
with the dual purposes of adornment and saving.
The distinction between the purchase of physical gold and gaining an
exposure to movements in the gold price is not always clear, especially since
physical gold can be purchased in some forms without the owner needing to take
delivery.
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1.2.7 REAL ESTATE
Land and house property is called real estate. This investment is taken by a
large number of people for hedging against inflation rate. The investment in the real
estate is also very risky. Although the average rate of return is high a cautious investor
should not think of property because it has very low liquidity and subject to wide
fluctuations in valuation .
1.3. COMPANY PROFILE:
Way2Wealth is a premier Investment Consultancy Firm that has been
launched with the aim of making investing simpler, more understandable and
profitable for the investors.
Way2Wealth brings a wide range of product offerings from Fixed
Income Securities, Life Insurance and Mutual Funds to Equity and Derivatives (on
the National Stock Exchange) for the convenience and benefit of it customers.
Way2Wealth has over 40 easily accessible Investment Outlets spread across 20
major towns and cities in the country.
Sivan Securities started in 1984, has a long and illustrious track record of
being amongst the premier Financial Intermediaries in the country as well as being
an incubator for IT start-up firms. The Venture Capital division came to be known as
Global Technology Ventures and the Financial Intermediary Division was spun off
as Way2Wealth in the year 2000.
Way2Wealth is promoted by Sivan Securities and Global Technology
Ventures Ltd. Prudential ICICI provides further strength to Way2Wealth as strategic
equity partner. Way2Wealth has a very credible management team, who has well
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over 100 man-years of experience amongst themselves. Way2Wealth has inherited
these same values in addition to a base of 75,000 individual customers, over 300
corporate/institutional clients.
Other companies in the group include Amalgamated Bean Coffee
Trading Company Ltd. (one of the largest Coffee Exporters in India) and Café
Coffee Day, a chain of youth hangout coffee parlors.
Mission:
“To be the pre-eminent destination for personalized financial solutions
helping individuals create wealth”.
Philosophy:
“Our knowledge combined with our investors trust and involvement will
lead to the growth of wealth and make it an exciting experience”.
Way2wealth Research Desk:
The research cell focuses on providing data and analysis to help customers
make sound investment decisions. The Research cell is managed by a highly
qualified team that is handpicked and trained extensively in the proprietary
Way2Wealth Investment Philosophy centered on finding the best investment
solutions for the customers. Based in the commercial capital enables the team to have
a pulse of the trends allowing dissemination of the most up-to-date and latest
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information. The Way2Wealth research cell measures up to international standards of
technology and on-site resources.
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CHAPTER – 2
2.1 OBJECTIVES
2.1.1 PRIMARY OBJECTIVES
To study the investors perception and attitude towards different investment
products
To assess the awareness of investors with regard to small and medium
capitalization companies.
2.1.2 SECONDARY OBJECTIVES
To analyze the investing habits of the investor.
To analyze the factors influencing the investor in choosing the types of
investments.
To understand the profile of the investors.
To analyze investors risk and return preferences of the investment.
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2.2 SCOPE OF THE STUDY
India is now one of the fastest economically growing nations. With its vast
economy, Indians have a lot of options to invest their savings.
This study undertaken for Way2wealth Securities Pvt Ltd aims to study the
investors’ attitude towards various investment alternatives and to study the
customers’ perception on investing in small and medium capitalization companies.
The study would also analyze the awareness level of investors in small and medium
capitalization companies
The study has been done by preparing a questionnaire which contains
prospective questions put forth to the investors .The responses help in analyzing the
profile and investing habits of the investor and factors influencing the investor in
investing in small and medium capitalization companies.
All this would help in giving suggestions to Way2wealth Securities (P) Ltd,
in strengthening their marketing efforts and in determining the market potential for
investments in small and medium capitalization companies.
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2.3 LIMITATIONS OF THE STUDY
The area of the study is limited to Thyagaraya Nagar, a part of
Chennai only. Hence the results may not be true for other
geographical locations.
Validity and Reliability of the data depends on the truthfulness of
the responses from the public.
Time at the disposal of the researcher is limited.
The size of the sample compared to the population is very small and
hence it may not represent the whole population.
A structured questionnaire was the basis for collecting the data, so
it has the usual deficiencies attached to this technique of data
collection.
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CHAPTER – 3
RESEARCH METHODOLOGY
Business research is a systematic inquiry that provides information to
guide business decisions and aimed to solve managerial problems. Business research
is of recent origin and is largely supported by business organizations that hope to
achieve competitive advantages.
Research methodology is a way to systematically solve the research
problems. It may be understood as a science of studying how research is done
scientifically. It includes the overall research design, the sampling procedure, data
collection method and analysis procedure.
3.1 RESEARCH DESIGN
Research design stands for advance planning of the methods to be
adopted for collecting the relevant data and the techniques to be used in analysis,
keeping in view the objectives of the research and availability of time.
Descriptive research includes surveys and fact-finding enquiries of
different kinds. The major purpose of this research is description of state of affairs as
it exits at present.
In this survey the design used is descriptive in nature. The information is
collected from the individuals and analyzed with the help of different statistical tools,
for describing the relationship between various types of variables, pertaining to
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different investment options. Moreover Cross table Analysis has been done for
processing the data and information is derived to meet the objectives of the study.
3.2 DATA
3.2.1 Nature of Data
Under the study Primary data was collected by using Questionnaire.
3.2.2 Source of Data
The Primary data was collected from the individuals residing in Chennai
City, with the help of the questionnaire, which was prepared after getting inputs from
the experts and executives in Way 2 wealth .Secondary data are sourced from
Magazines, Books, Pamphlets, Periodical Surveys, and Websites etc.
3.3 METHOD OF DATA COLLECTION
Structured Questionnaire method is used as an instrument for collecting
information from the individuals. A Pilot study was conducted based on which a few
changes were made in the Questionnaire.
3.4 SAMPLING
Since the populations of consumers of Investments are large in number,
researcher was unable to collect information from all individuals due to limitation of
time. So part of the population is taken for analyzing and generating the findings,
which may be applicable for total market.
3.4.1 Sampling Unit
The number of items selected from the population constitutes the sample
size. The respondents of the study are present and future investors.
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3.4.2 Sample Size
The sample size is calculated at 95% confidence level with +5% error
level
N = (z2* p*q )/e2 (4.1)
Where N =Sample size, p= population proportion, q=1-p, e= error rate,
z= confidence level at 95%(2)
The sample size for the study is 410.
3.4.3 Sampling Method
Sampling design is to clearly define set of objects, technically called the
universe to be studied. This research has finite set of universe and the sampling
design used in the study is probability sampling.
Cluster Simple Random sampling method is used for the collection of
data.
3.5 TOOLS USED
The data has been mainly analyzed by using the following methods and
tests. Cross Tabulation and Percentage method supplemented by appropriate charts.
1. Percentage Analysis
2. Ranking Method
3. Chi – Square Test
CHAPTER – 4
ANALYSIS AND INTERPRETATION
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Analysis is the process of placing the data in the ordered form, combining
them with the existing information and extracting the meaning from them. In other
words, analysis is an answer to the question “what message is conveyed by each
group of data “. Data, which are otherwise raw facts and are unable to give a
meaningful information. The raw data become information only when they are
analyzed and when put in a meaningful form.
Interpretation is the process of relating various bits of information to other
existing information. Interpretation attempts to answer “what relationship exists
between the findings to the research objectives and hypothesis framed for the study
in the beginning”.
STATISTICAL TOOLS
4.1 PERCENTAGE ANALYSIS
Percentage refers to a special kind of ratio in making comparison
between two or more data and to describe relationships. Percentage can also be used
to compare the relation terms the distribution of two or more sources of data.
Percentage of Respondents = Number of Respondents *100 (5.1)
Total Respondents
Column chart is used in showing the comparison diagrammatically. Column
charts shows the number of respondents in Y-axis and their feedback in X-axis.
TABLE – 4.1
Age Group of the Respondents
S.NO. AGE GROUP NO. OF RESPONDENTS PERCENTAGE
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1 Below 25 Years 70 17.1
2 26-32 years 160 39.0
3 33-39 years 92 22.4
4 40-46 years 26 6.3
5 Above 46 years 62 15.1
Total 410 100.0
INFERENCE:
From the above table, it can be inferred that,
17.1% of the respondents are in the age group less than 25 years.
39.0 % of the respondents are in the age group between 26 to 32 years.
22.4% of the respondents are between 33 to 39 years.
6.3% of the respondents are between 40 to 46 years.
15.1% of the respondents are above 46 years.
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FIGURE - 4.1
Age Group of the Respondents
0
20
40
60
80
100
120
140
160
180
Below 25 Years 26-32 years 33-39 years 40-46 years Above 46 yearsAGE IN YEARS
NO
OF
RES
PON
DEN
TSN
o. o
f Res
pond
ents
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TABLE – 4.2
Education Profile of the Respondents
INFERENCE:
From the above table, it can be viewed that among the 410 respondents,
9.8% of the respondents have completed their HSC.
59.5% of the respondents have completed their Under Graduation.
27.6% of the respondents have completed their Post Graduation.
3.2% of the respondents are in the category others which include CA,
ICWA, Doctors, etc.
S.NO. EDUCATION NO. OF RESPONDENTS PERCENTAGE
1 HSC 40 9.8
2 UG 244 59.5
3 PG 113 27.6
4 Others 13 3.2
Total 410 100.0
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FIGURE – 4.2
Education Profile of the Respondents
0
50
100
150
200
250
300
HSC UG PG OtherEDUCATION
No.
of R
espo
nden
ts
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TABLE – 4.3
Occupation of the Respondents
INFERENCE:
From the above table, it is inferred that,
About 73.4% of the respondents belong to salaried class,
7.3% of the respondents are self-employed.
10.7% of the respondents are doing business.
7.1% of the respondents are retired peoples and
1.5% of the respondents belong to other categories.
S.NO OCCUPATION NO. OF RESPONDENTS PERCENTAGE
1 Salaried 301 73.4
2 Self-Employed 30 7.3
3 Business 44 10.7
4 Retired 29 7.1
5 Others 6 1.5
Total 410 100.0
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FIGURE - 4.3
Occupation of the Respondents
0
50
100
150
200
250
300
350
Salaried Self-Employed Business Retired Others
OCCUPATION
No.
of R
espo
nden
ts
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TABLE – 4.4
Income Level of the Respondents
INFERENCE: From the above table, it is viewed that
23.4% of the respondents belong to the income
level of below 1 lakh.
34.4% of the respondents are in the income level between 1 lakh to
2lakhs.
21% of the respondents are between 2 lakhs to 3lakhs.
12.4% of the respondents are between 3lakhs to 4 lakhs.
8.8% of the respondents are above 4 lakhs.
S.NO INCOME/ANNUM NO. OF RESPONDENTS PERCENTAGE
1 Below 1 lakh 96 23.4
2 1lakh - 2 lakhs 141 34.4
3 2 lakhs - 3 lakhs 86 21.0
4 3 lakhs - 4 lakhs 51 12.4
5 Above 4 lakhs 36 8.8
Total 410 100.0
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FIGURE – 4.4
Income Level of the Respondents
0
20
40
60
80
100
120
140
160
Below 1 lakh 1lakh - 2 lakhs 2 lakhs - 3lakhs
3 lakhs - 4lakhs
Above 4 lakhs
INCOME/ANNUMIncome Per Annum
No.
of R
espo
nden
ts
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TABLE – 4.5
Tax Percentage of the Respondents
S.NO. TAX PERCENTAGE
NO. OF RESPONDENTS PERCENTAGE
1 0 PERCENT 108 26.3
2 10 PERCENT 134 32.7
3 20 PERCENT 94 22.9
4 30 PERCENT 74 18.0
Total 410 100.0
INFERENCE:
From the above table, it is inferred that,
26.3% of the respondents are in the tax level of 0%.
32.7% of the respondents are in the tax slab of 10%.
22.9% of the respondents are in the tax level of 20%.
18% of the respondents are in the tax level of 30%.
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TABLE – 4.6
Frequency of Investment of the Respondents
S.NO FREQUENCY OF INVESTMENT
NO. OF RESPONDENTS PERCENTAGE
1 Every Month 154 37.6
2 Once in Three Months 109 26.6
3 Once in Six Months 29 7.1
4 Only in the Last Quarter of the Year 118 28.8
Total 410 100.0
INFERENCE:
From the above table, It is inferred that,
37.6% of the respondents do their investments every month.
26.6% of the respondents invest every 3 months.
7.1% of the respondents invest once in six months
28.8% of the respondents invest only in the last quarter of the
financial year.
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TABLE – 4.7
Investment Portfolio of the Respondents
S.NOINVESTMENT
PORTFOLIOINVESTED
NOT
INVESTED
PERCENTAGE
OF INVESTED
PEOPLE
1 Bank Deposits 302 108 73.7
2 Company Deposits 8 402 2.0
3 Small Savings 310 100 75.6
4 Shares 138 272 33.7
5 Mutual Funds 179 231 43.7
6Life Insurance
(For Self)331 79 80.7
7Life Insurance
(For others)87 323 21.2
8 Real Estate 10 400 2.4
9 Jewellery 14 396 96.6
INFERENCE:
From the above table, it is inferred that among 410 respondents,
73.7% of the respondents have invested in Bank Deposits. Only 2.0% of the respondents have invested in Company deposits. 75.6% of the respondents have invested in Small Savings. 33.7% of the respondents have invested in Shares. 43.7% of the respondents have invested in Mutual funds. 21.2% of the respondents have invested in Life Insurance i.e., for themselves. 21.2% of the respondents have invested in Life Insurance i.e., for their family
members. Only 2.4% of the respondents have invested in Real Estate. Only 3.4% 0f the respondents have invested in Gold.
TABLE – 4.8
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Risk Profile of the Respondents
S.NO. RISK PROFILE NO. OF RESPONDENTS PERCENTAGE
1 Low Risk Takers 140 34.1
2 Medium Risk Takers 175 42.7
3 High Risk Takers 95 23.2
Total 410 100.0
INFERENCE:
From the above table, it is inferred that
34.1% of the respondents are low risk takers i.e., they need low returns with minimum risk.
42.7% of the respondents are medium risk takersi.e., they need medium returns with medium risk.
23.7% of the respondents are high risk takers i.e., they need high returns with high risk.
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FIGURE – 4.5
Risk Profile of the Respondents
0
20
40
60
80
100
120
140
160
180
200
Low Risk takers Medium Risk takers High Risk takersRISK PROFILE
NO O
F RES
PONDEN
TS
No.
of R
espo
nden
ts
31
CHAPTER – 5
FINDINGS
Respondent Profile:
About 90% of the Respondents are Graduates, PG, etc.
About 73% of the Respondents are Salaried People.
About 57.80 % of the Respondents have Annual Income of below Rs.2
lakhs.
About 59% of the respondents come under the tax slab of 10%.
About 36% of the Respondents invest Monthly, 26% invest Quarterly and
28% invest in the last quarter of the financial year.
38.3% of the Respondents are their own financial advisors and 48% of the
respondents have friends and relatives as their financial advisors
Investment preferences of Respondents:
The Respondents choose Safety as First and Capital Appreciation as their
second among factors influencing investment.
Most of the respondents ranked Life Insurance as first and small savings
and Bank Deposits as next choice.
Most of the respondents are medium risk takers i.e., they need medium
returns with average risk
Investment Portfolio of Investors:
About 80% of the respondents have invested in Insurance
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About 75.6% of the respondents have invested in Small savings
73.7% of the respondents have invested in Bank Deposits.
Only 2% of the respondents have invested in company deposits
33.7% of the respondents have invested in shares
43.7% of the respondents have invested in mutual funds
Only 21% of the respondents have invested in Life Insurance for other
family members
Awareness about small and medium capitalization companies:
.Only 39% of the respondents are aware about small and medium
capitalization companies
In that 39%, 88% of the respondents are interested to invest in small and
medium capitalization companies
64% of the respondents preferred private sector companies to invest
In this also most of the respondents preferred safety as their first choice
IT sector and Banking sector are the top priorities for the respondents
About 86% of the respondents who know about small and medium
capitalization companies are interested to invest in mutual funds
specializing in small and medium capitalization companies
Inter-relationship between Investor profile and Investment
Preferences:
From the chi-square analysis,
It is found that there is no relationship between
Income and Frequency of Investment
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Occupation and risk profile.
It is found that there is significant relationship between
Age and Risk Profile.
Income and Risk Profile.
Occupation and Frequency of Investment.
Age and Safety in Investment.
Those who have invested in shares and mutual funds.
Education and awareness about small and medium capitalization
companies.
Those who are interested to invest in small and medium capitalization
companies and those who interested to invest in Mutual funds specializing
in small and medium capitalization companies.
There is specific preference of factors among capital appreciation,
liquidity and regular income for investments by investors.
There is particular preference among investment alternatives by investors.
Based on safety, the investors have specific preference for investments.
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CHAPTER – 6
SUGGESTIONS
As majority of the respondents are salaried, this is the core market segment,
which should be concentrated on.
.Majority of the respondents showed interest in knowing about small and
medium capitalization companies, seminars for investors may be organized to
create awareness and interest.
Majority of the respondents are salaried people. So, the company should
promote schemes like Systematic Investment Plan.
Since most of the people showed interest in bank deposits< small savings the
company may promote these products.
Nearly three-fourth of the respondents are tax payers, tax savings schemes
can be preferred by the company
Since company deposits are not popular, the company should not enter the
distribution of company deposits
Majority of the respondents may not seek the advices of Financial
consultants, this provides the great opportunity for the company to increase
their market penetration through promotional activities.
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CHAPTER – 7
CONCLUSION
The study was conducted in T.Nagar for Way2Wealth securities, an
investment consultancy company.
The study revealed that the investors have greatest preference for safety.
Most of the respondents have invested in life insurance, bank deposits and small
savings.
The level of awareness about small and medium capitalization companies
can be enhanced through the efforts of the company. Since many investors expressed
their interesting learning more about such companies.
The statistical analysis of data has given insight into investor
demographics and their investment preferences.
Based on the investor profile and investor preferences , suggestions have
been made for the company to increase its market penetration.