A PROJECT REPORT ON

“INVESTOR’S INVESTMENT BEHAVIOR AND PERCEPTION TOWARDS

INVESTMENT AVENUES IN BHOPAL CITY”

Submitted by

NIKITA SHARMA

Reg No: 2016MBA006

Under the guidance of

Dr Pooja Gupta

Assistant Professor

Programme Leader-BMS

Jagran Lakecity Business School

Submitted in Partial Fulfilment of the requirements

Of Jagran Lakecity university for the Award of the degree in

Master of Business Administration

Jagran Lakecity Business School

JAGRAN LAKECITY UNIVERSITY

BHOPAL-462001

Session 2016-2018

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 DECLARATION

I hereby declare that my research project report title “Investor’s behaviour towards

investment avenues” is an authentic work done by me as a part of study.

The project was undertaken as a part of the course curriculum of MBA programme of

JAGRAN LAKECITY UNIVERSITY Bhopal. This has not been submitted to any other

examination body.

Date: - Nikita Sharma

Signature: - MBA IV Semester

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 ACKNOWLEDGEMENT

I would like to take this opportunity to express my deep and sincere gratitude to
Dr.Nilesh Khare, Director JLBS who gave me a chance to show my capability and allowed
me to carry out a project under the guidance of Dr.Pooja Gupta Assistant Professor and
Programme Leader-BMS.

I present my heartfelt gratitude towards Dr.Pooja Gupta for giving me this

opportunity to widen my horizons of understanding by giving me in the project on valuable
insight and suggestion for my comprehension of the subject.

By working on this project, I got an opportunity to learn many aspects of financial

market and investment avenues. The credit also goes to the timely guidance and support
given by the others who have helped me in enhancing my interest and understanding of the
intricacies involved with the subject.

Last, but not the least, I would like to thank everybody who has helped me in the
successful completion of the project. The whole experience was gratifying, especially in
terms of knowledge and information.

Nikita Sharma Dr Pooja Gupta

MBA III Semester Assistant Professor &

Place:- Bhopal Programme Leader-BMS

Date:-

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 TABLE OF CONTENTS

EXECUTIVE SUMMARY

CHAPTER 1: INTRODUCTION 1

1.1: Introduction of the report: 2

1.2: Objective of the study: 3

1.3: Scope of the study: 4

1.4: Limitation of the study: 5

1.5: Research methodology: 6

1.6: Source of information: 7

CHAPTER 2: LITERATURE REVIEW 8

CHAPTER 3: INDUSTRY PROFILE 10

3.1: Industry profile 13

3.2: Description of various investment avenues: 15

CHAPTER 4: DATA ANALYSIS AND INTERPRETATION 32

4.1: Report analysis: 33

4.2: Survey analysis: 34

CHAPTER 5: FINDING'S 46

5.1: Finding's: 47

CHAPTER 6: SUMMARY AND CONCLUSION 50

6.1: Summary: 51

6.2: Conclusion: 51

CHAPTER 7: BIBLIOGRAPHY 52

CHAPTER 8: ANNUEXURE 54

8.1: Questionnaire: 55

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 EXECUTIVE SUMMARY

The main aim of the study is to understand the various investment instrument which
are available in the financial market and investors perceptions towards those investment
option and their willingness to opt for those investment options.
The study has been undertaken to analyze the investment pattern of investors. The
main reason behind the study are the factors like income, economic condition, age and the
risk covering nature of the investors.
This project contains the investor’s preferences and as well as the different factors that
affect investors decision on the different investment avenues.
This study includes responses of the investors in choosing the investment options
according to their willingness and their risk bearing apatite.

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 Chapter 1

Introduction

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1.1 Introduction of the report

Savings form an important part of the economy of any nation. With the savings invested in
various options available to the people, the money acts as the driver for growth of the
country. Indian financial scene too presents a plethora of avenues to the investors. Though
certainly not the best or deepest of markets in the world, it has reasonable options for an
ordinary man to invest his savings.
One needs to invest and earn return on their idle resources and generate a specified
sum of money for a specific goal in life and make a provision for an uncertain future. One of
the important reasons why one needs to invest wisely is to meet the cost of inflation. Inflation
is the rate at which the cost of living increases.
The cost of living is simply what it cost to buy the goods and services you need to
live. Inflation causes money to lose value because it will not buy the same amount of a good
or service in the future as it does now or did in the past. The sooner one starts investing the
better. By investing early you allow your investments more time to grow, whereby the
concept of compounding increases your income, by accumulating the principal and the
interest or dividend earned on it, year after year.
The three golden rules for all investors are:
· Invest early
· Invest regularly
· Invest for long term and not for short term

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1.2 Objectives of the study

The purpose of the analysis is to determine the investment behaviour of investors and
investment preferences for the same. Investors perception will provide a way to accurately
measure how the investors think about the products and services provided by the company.
Today’s trying economic conditions have forced difficult decisions for companies. Most are
making conservative decisions that reflect a survival mode in the business operations. During
these difficult times, understanding what investors on an ongoing basis is critical for survival.
Executives need a third party understanding on where investor’s loyalties stand. More than
ever management needs ongoing feedback from the investors, partners and employees in
order to continue to innovate and grow.
“The main objective of the project is to find out the needs of the current and future
investors.”
For this analysis, customer perception and awareness level will be measured in important
areas such as:
1. To understand in depth about different investment avenues available in India.
2. To find out investors perception towards various financial instruments and investment
avenues.
3. To give a recommendations to the investors that where they should invest.
4. To know the risk tolerance level of the individual investor and suggest a suitable
portfolio.

1.3 Scope of the study

Stock market has been subjected to speculations and inefficiencies, which are beached to the
rationality of the investor. Traditional finance theory is based on the two assumptions. Firstly,
investors’ make rational decisions; and secondly investors are unbiased in their predictions
about future returns of the stock. However financial economist have now realized that the
long held assumptions of traditional finance theory are wrong and found that investors can be
irrational and make predictable errors about the return on investment on their investments.
This analysis on Individual Investors’ Behaviour is an attempt to know the profile of the
investor and also know the characteristics of the investors so as to know their preference with
respect to their investments. The study also tries to unravel the influence of demographic
factors like age & risk tolerance level and investment awareness of the investor.

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1.4 Limitations of the study
This analysis is based upon investors’ behaviour for investment preferences during
normal time vis-à-vis recessionary period. This analysis would be focusing on the
information from the investors about their knowledge, perception and behaviour on
different financial products.
The various limitations of the study are:
1. The total number of financial instruments in the market is so large that it needs a lot
of resources to analyze them all. There are various companies providing these
financial instruments to the public. Handling and analyzing such a varied and
diversified data needs a lot of time and resources.
2. As the analysis is based on primary as well as secondary data, possibility of
unauthorized information cannot be avoided.
3. Reluctance of the people to provide complete information about them can affect the
validity of the responses.
4. The lack of knowledge of customers about the financial instruments can be a major
limitation.
5. The information can be biased due to use of questionnaire.

1.5 Research methodology

Sampling technique:
Convenience sampling technique was used for collecting the data from different investors.
The selection of units from the population based on their easy availability and accessibility to
the researcher. Convenience sampling is at its best in surveys dealing with an exploratory
purpose for generating ideas and hypothesis.
1. Sampling unit:
The respondents who will be asked to fill out the questionnaires are the sampling
units. These comprise of employees of MNC’s, government employees, housewives,
self employed, professionals and other investors.
2. Sampling size:
The sample size will be restricted to only 40, which comprised of mainly people from
different regions of Bhopal due to time constraints.
3. Sampling area:
The area of the research restricted to Bhopal city of Madhya Pradesh, India.

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1.6 Source of information
1. Primary Data:
a. Information is collected by conducting a survey by distributing a questionnaire
to 40 investors in Bhopal. These 40 investors are of different age group,
different occupation, different income levels, and different qualifications.
b. (A copy of the questionnaire is given in the last as ANNEXURE 1).
2. Secondary Data:
This data is collected by using the following means.
a. Articles in Financial Newspapers (‘Economic times’ and ‘Business
Standard’).
b. Investment Magazines, Business Magazines, Financial chronicles.
c. Expert’s opinion published in various print media.
d. Books written by various Foreign and Indian authors on Investments.
e. Data available on internet from various websites

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 CHAPTER 2

LITERATURE REVIEW

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Literature review

Literature suggests that major research in the area of investors’ behaviour has been
done by behavioural scientists such as Weber, Shiller and Shefrin. Shiller who strongly
advocated that stock market is governed by the market information which directly affects the
behaviour of the investors. Several studies have brought out the relationship between the
demographics such as Gender, Age and risk tolerance level of individuals. Of this the
relationship between Age and risk tolerance level has attracted much attention.

Horvath and Zuckerman suggested that one’s biological, demographic and

socioeconomic characteristics; together with his/her psychological makeup affects one’s risk
tolerance level. Malkiel suggested that an individual’s risk tolerance is related to his/her
household situation, lifecycle stage and subjective factors. Mittra discussed factors that were
related to individuals risk tolerance, which included years until retirement, knowledge
sophistication, income and net worth. Guiso, Jappelli and Terlizzese, Bajtelsmit and
VenDerhei, Powell and Ansic, Jianakoplos and Bernasek, Hariharan, Chapman and Domain,
Hartog, Ferrer-I-Carbonell and Jonker concluded that males are more risk tolerant than
females.

Wallach and Kogan were perhaps the first to study the relationship between risk
tolerance and age. Cohn, Lewellen et.al found risky asset fraction of the portfolio to be
positively correlated with income and age and negatively correlated with marital status.
Morin and Suarez found evidence of increasing risk aversion with age although the
households appear to become less risk averse as their wealth increases. YOO found that the
change in the risky asset holdings were not uniform. He found individuals to increase their
investments in risky assets throughout their working life time, and decrease their risk
exposure once they retire. Lewellen et.al while identifying the systematic patterns of
investment behaviour exhibited by individuals found age and expressed risk taking
propensities to be inversely related with major shifts taking place at age 55 and beyond.
Indian studies on individual investors' were mostly confined to studies on share ownership,
except a few. The RBI's survey of ownership of shares and L.C. Gupta's enquiry into the
ownership pattern of Industrial shares in India were a few in this direction. The NCAER's
studies brought out the frequent form of savings of individuals and the components of
financial investments of rural households. The Indian Shareowners Survey brought out a
volley of information on shareowners. Rajarajan V classified investors on the basis of their

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demographics. He has also brought out the investors' characteristics on the basis of their
investment size. He found that the percentage of risky assets to total financial investments
had declined as the investor moves up through various stages in life cycle. Also investors'
lifestyles based characteristics has been identified. The above discussion presents a detailed
picture about the various facets of risk studies that have taken place in the past. In the present
study, the findings of many of these studies are verified and updated.

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 CHAPTER 3

INDUSTRY PROFILE

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 3.1 Industry profile

Indian financial industry is considered as one of the strongest financial sectors among
the world markets. Many industry experts may give various reasons for such Indian financial
industry reputation, but there is only one answer which no one can deny, the effective control
and governance of the country’s supreme monetary authority the “RESERVE BANK OF
INDIA” (RBI).
Financial sector in India has experienced a better environment to grow with the
presence of higher competition. The financial system in India is regulated by independent
regulators in the field of banking, insurance, and mortgage and capital market. Government
of India plays a significant role in controlling the financial market in India.
Ministry of Finance, Government of India controls the financial sector in India. Every year
the finance ministry presents the annual budget on 28th February. The Reserve Bank of India
is an apex institution in controlling banking system in the country. Its monetary policy acts as
a major weapon in India's financial market.
Various governing bodies in financial sector:
1. RBI - Reserve Bank of India is the supreme authority and regulatory body for all the
monetary transactions in India. RBI is the regulatory body for various Banking and
Non Banking financial institutions in India.
2. SEBI - Securities and Exchange Board of India is one of the regulatory authorities for
India's capital market.
3. IRDA – Insurance regulatory and development authority in India regulates all the
insurance companies in India.
4. AMFI – Association of mutual funds in India regulates all the mutual fund companies
in India.
5. FIPB – Foreign investments promotion board regulates all the foreign direct
investments made in India.
• Ministry of housing is planning to establish a real estate regulatory and
governing body by the end of financial year 2010 - 11.
• Investments in gold is governed by the world gold council, in India we do not
have any regulatory authority for investments in gold.
• Ministry of Finance, Government of India has a control over all the financial
bodies in India.

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 • Government securities, Public Provident Fund (PPF), National Savings
Certificate (NSC), Post Office Savings are all under the control of the central
government.
Investment are normally categorized using the risk involved in it, risk is dependent on various
factors like the past performance, its governing body, involvement of the government etc., in
this scenario Indian investments are classified in to 3 categories based on risk. They are
1. Low Risk/ No Risk Investments.
2. Medium Risk Investments.
3. High Risk Investments.
Apart from these, there are traditional investment avenues and emerging investment avenues.

3.1.1 Various Investment avenues available in India

1. Safe/Low Risk Avenues:
• Savings Account
• Bank Fixed Deposits.
• Public Provident fund.
• National savings certificates.
• Post office savings.
• Government Securities.
2. Moderate Risk Avenues:
• Mutual Funds.
• Life Insurance.
• Debentures.
• Bonds.
3. High Risk Avenues:
• Equity Share Market.
• Commodity Market.
• FOREX Market.
4. Traditional Avenues:
• Real Estate (property).
• Gold/Silver.
• Chit Funds.

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 5. Emerging Avenues:
• Virtual Real Estate.
• Hedge Funds/Private Equity Investments.
• Art and Passion.

3.2 DESCRIPTION ON VARIOUS INVESTMENT AVENUES

3.2.1 SAVINGS ACCOUNT

As the name denotes, this account is perfect for parking your temporary
savings. These accounts are one of the most popular deposits for individual accounts.
These accounts provide cheque facility and a lot of flexibility for deposits and
withdrawal of funds from the account. Most of the banks have rules for the
maximum number of withdrawal in a period and the maximum amount of withdrawal,
but no bank enforces these. However, banks have every right to enforce such
boundaries if it is felt that the account is being misused as a current account. At
present the interest on these accounts is regulated by Reserve Bank of India. Presently
Indian banks are offering 3.50% p.a. interest rate on such deposits.
This account gives the customer a nominal rate of interest and he can
withdraw money as and when the need arises. The position of account is depicted in a
small book known as 'Pass Book'. Such accounts should be treated as a temporary
parking area because the rate of interest is much less than Fixed Deposits. As soon as
one’s savings accumulate to an amount which he can spare for a certain period of
time, shift this money to Fixed Deposit. The returns on the money kept in Savings
Bank account will be less but the freedom to withdraw is the highest.

3.2.2FIXED DEPOSITS/ TERM DEPOSITS

The term "fixed" in Fixed Deposits denotes the period of maturity or tenor.
Fixed Deposit, therefore, pre plans a 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 tenure. Rate of interest differs from Bank to Bank. Normally, the rate
is highest for deposits for 3-5 years. This, however, does not mean that the depositor
loses all his rights over the money for the duration of the tenor decided. Deposits can
be withdrawn before the period is over. However, the amount of interest payable to
the depositor, in such cases goes down.

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 Every Banks offer fixed deposits schemes with a wide range of tenures for
periods from 7 days to 10 years. Therefore, the depositors are supposed to continue
such Fixed Deposits for the duration of time for which the depositor decides to keep
the money with the bank. However, in case of need, the depositor can ask for closing
the fixed deposit in advance by paying a penalty. Soon some banks have even
introduced variable interest fixed deposits. The rate of interest in such deposits will
keep on varying with the prevalent market rates i.e. it will go up if market interest rate
goes and it will come down if the market rates fall.

3.2.3 LIFE INSURANCE

Life insurance is a contract between the policy owner and the insurer, where
the insurer agrees to pay an amount of money upon the happening of the insured
individual's or individuals' death or other event, like terminal illness, critical illness. In
return, the policy owner agrees to pay a fixed amount called a premium at regular
Like other insurance policies, life insurance is also a contract between the
insurer and the policy owner whereby a benefit is paid to the nominated beneficiaries
if an insured event occurs which is covered by the policy. The assessment for the
policyholder is derived not from an actual claim event. But to a certain extent it is the
value derived from the 'peace of mind' experienced by the policyholder, because of
the opposing of adverse financial consequences caused by the death of the Life
Assured. To be a life policy the insured event must be based upon the lives of the
people named in the policy.
Advantages of a Life Insurance Policy
1. Financial Security
2. Helps to diverts States Resources for Other Purpose
3. Facilitates Economic Movements
4. Helps to Avail Tax Exemptions

3.2.4 PUBLIC PROVIDENT FUND (PPF)

PPF is a 30 year old constitutional plan of the Central Government happening

with the objective of providing old age profits security to the unorganized division
workers and self employed persons. Currently, there are almost 30 lakhs PPF account
holders in India across banks and post offices.

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 1. Eligibility: Any individual salaried or non-salaried can open a PPF account. He may
also pledge on behalf of a minor, HUF, AOP and BOI. Even NRIs can open PPF
account. A person can contain only one PPF account. Also two adults cannot open a
combined PPF account. The collective annual payment by an individual on account of
himself his minor child and HUF/AOP/BOI (of which individual is member) cannot
exceed Rs.70, 000 or else the excess amount will be returned without any interest.
2. Subscription: The yearly contribution to PPF account ranges from a least of Rs.500
to a maximum of Rs.70, 000 payable in multiple of Rs.5 either in lump sum or in
convenient instalments, not exceeding 12 in a year.
3. Penalty in case of non-subscription: The account will happen to obsolete if the
required minimum of Rs.500 is not deposited in any year. The amount before now
deposited will continue to earn interest but with no facility of taking loan or making
withdrawals. The account can be regularized by depositing for each year of default,
arrears of Rs.500 along with penalty of Rs.100.
4. Where to open: A PPF account can be opened at any branch of State Bank of India
or its subsidiaries or in few national banks or in post offices. On opening of account a
pass book will be issued wherein all amounts of deposits, withdrawals, loans and
repayment together with interest due shall be entered. The account can also be
transferred to any bank or post office in India.
5. Interest rate: Deposits in the account earn interest at the rate notify by the Central
Govt from time to time. Interest is designed on the lowest balance among the fifth day
and last day of the calendar month and is attributed to the account on 31st March
every year. So to derive the maximum, the deposits should be made between 1st and
5th day of the month, as it also enables you to earn interest on your Savings Bank A/c
for the previous month.
6. Tenure: Even though PPF is 15 year scheme but the effectual period works out to 16
years i.e. the year of opening the account and adding 15 years to it. The sum made in
the 16th financial year will not earn any interest but one can take advantage of the tax
rebate.
7. Withdrawal: The investor is allowable to make one removal every year beginning
from the seventh financial year of an amount not more than 50% of the balance at the
end of the fourth year or the financial year immediately preceding the withdrawal,
whichever is less. This facility of making partial withdrawals provide liquidity and the
withdrawn amount can be used for any purpose.

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 3.2.5 NATIONAL SAVINGS CERTIFICATE (NSC)

National Savings Certificate (NSC) is a fixed interest, long term instrument for
investment. NSCs are issued by the Department of Post, Government of India. Since
they are backed by the Government of India, NSCs are a practically risk free avenue
of investment. They can be bought from authorized post offices. NSCs have a
maturity of 6 years. They offer a rate of return of 8% per annum. This interest is
calculated every six months, and is merged with the principal. That is, the interest is
reinvested, and is paid along with the principal at the time of maturity. For every Rs.
100 invested, you receive Rs. 160.10 at maturity.
NSCs qualify for investment under Section 80C of the Income Tax Act (IT
Act). Even the interest earned every year qualifies under Sec 80C. This means that
investments in NSCs and the interest earned on it every year, up to Rs. 1 Lakh, are
deductible from the income of the investor. There is no tax deducted at source (TDS).
Features of NSC
• Minimum investment Rs. 500/- No maximum limit.
• Rate of interest 8% compounded half yearly.
• Rs. 1000/- grow to Rs. 1601/- in six years.
• Two adults, Individuals, and minor through guardian can purchase.
• Companies, Trusts, Societies and any other Institutions not eligible to
purchase.
• Non-resident Indian/HUF cannot purchase.
• No pre-mature encashment.

3.2.6 POST OFFICE SAVINGS

There are various investment schemes available in post offices, like KVP
(Kisan Vikas Patra), MIS (Monthly Income Scheme) and various others. All these
schemes are completely risk-free, and you do not need to have large sum of money to
start investing in these post office schemes. Some schemes offer Tax-saving benefits
and some gives tax-free returns. So you need to find out some scheme as per your
requirements.
These are some of the safe and secure investments that one can opt for.
Though the interest rates are not so high, but still we must invest some part of our

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 money into any of these investment instruments. It is our hard-earned money, so
better play safe and invests some part in secure funds also.

3.2.7GOVERNMENT SECURITIES

Government securities are supreme securities which are issued by the Reserve
Bank of India on behalf of Government of India in lieu of the Central Government's
market borrowing program.
The term Government Securities includes:
a. Central Government Securities.
b. State Government Securities
c. Treasury bills
The Central Government borrows funds to finance its 'fiscal deficit'. The
market borrowing of the Central Government is increased through the issue of dated
securities and 364 days treasury bills either by auction or by floatation of loans. In
addition to the above, treasury bills of 91 days are issued for managing the temporary
cash mismatches of the Government. These do not form part of the borrowing
program of the Central Government.
Features
• Issued at face value
• No default risk as the securities carry sovereign guarantee.
• Ample liquidity as the investor can sell the security in the secondary
market
• Interest payment on a half yearly basis on face value
• No tax deducted at source
• Can be held in Demat form.
• Redeemed at face value on maturity
• Maturity ranges from of 2-30 years.

3.2.8 MUTUAL FUNDS

A mutual fund is a professionally-managed firm of collective investments that

pools money from many investors and invests it in stocks, bonds, short-term money
market instruments, and/or other securities. In a mutual fund, the fund manager, who
is also known as the portfolio manager, trades the fund's underlying securities,
realizing capital gains or losses, and collects the dividend or interest income. The
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 investment proceeds are then passed along to the individual investors. The value of a
share of the mutual fund, known as the net asset value per share (NAV), is calculated
daily based on the total value of the fund divided by the number of shares currently
issued and outstanding.
Advantages of Mutual Funds
1. Diversification
2. Professional Management
3. Regulatory oversight
4. Liquidity
5. Convenience
6. Transparency
7. Flexibility
8. Choice of schemes
9. Intervals or in lump sum.

3.2.8 BONDS & DEBENTURES

Bonds & Debentures, these two words can be used interchangeably. In Indian
markets, we use the word bonds to indicate debt securities issued by government,
semi-government bodies and public sector financial institutions and companies. We
use the word debenture to refer to the debt securities issued by private sector
companies.
• Bonds - Debt securities issued by Govt. or Public sector companies
• Debentures - Debt securities issued by private sector companies
In other words we can tell that a bond is a debt security, similar to an I.O.U.
When you purchase a bond, you are lending money to a government, municipality,
corporation, or Public entity known as the issuer. The issuer promises to pay you a
specified rate of interest during the life of the bond, in return for the loan. They also
promises to repay the face value of the bond (the principal) when it “matures.”
Following are allowed to issue bonds
• Governments
 Municipalities
 Variety of institutions
 Corporations

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 I. Buying and Holding of Bonds: Investors can subscribe to primary issues of
Corporate and Financial Institutions (FIs). It is common practice for FIs and
Corporate to raise funds for asset financing or capital expenditure through
primary bond issues. Some bonds are also available in the secondary market.
The minimum investment for bonds can either be Rs 5,000 or Rs 10,000.
However, this amount varies from issue to issue. There is no prescribed upper
limit to your investment. The duration of a bond issue usually varies between
5 and 7 years.
II. Selling of Bonds: Selling of bonds in the secondary market has its own drawbacks.
First, there is a liquidity problem which means that it is a tough job to find a
buyer. Second, even if you find a buyer, the prices may be at a sharp discount
to its intrinsic value. Third, you are subject to market forces and, hence,
market risk. If interest rates are running high, bond prices will be down and
you may well end up incurring losses. On the other hand, Debentures are
always secured.
III. Debentures: A debenture is similar to a bond except the securitization conditions are
different. A debenture is generally unsecured in the sense that there are no
liens or pledges on specific assets. It is defined as a certificate of agreement of
loans which is given under the company's stamp and carries an undertaking
that the debenture holder will get a fixed return (fixed on the basis of interest
rates) and the principal amount whenever the debenture matures.
IV. Debentures vs. Bonds: Debentures and bonds are similar except for one difference
bonds are more secure than debentures. In case of both, you are paid a
guaranteed interest that does not change in value irrespective of the fortunes of
the company. However, bonds are more secure than debentures, but carry a
lower interest rate. The company provides collateral for the loan. Moreover, in
case of liquidation, bondholders will be paid off before debenture holders.

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 3.2.9 STOCK MARKET

The first step is to understand the stock market. A share of stock is the
smallest unit of ownership in a company. If you own a share of a company’s stock,
you considered as the part owner of the company.
I. Stock Market Trading: Stock market trading consists of buying and selling of
company stocks and as well as stock derivatives. This type of trading usually
takes place in a stock exchange, in which companies need to be listed in order
for their shares to be bought and sold. This trading market provides with
substantial earnings potential and is one among the most popular investment
options.
II. Working of Stock Market: Stock market trading is normally done by brokers. As a
result, the first step is to seek a reliable investment broker. Stock market
trading occurs at a physical stock exchange, where buyers and sellers of
company shares meet and agree on the price at which the transactions would
materialize.
Conventional stock trading entails an investor placing an order for a
specific number of shares of a company with his/her broker present in the
physical stock market. The broker forwards the order to the floor clerk, who
then attempts to locate a trader desire to sell those shares. Bids are then
exchanged. The transaction closes only after the buyer agrees on the price
quoted by the seller. This technique is also called “open outcry,” because it
involves traders crying out their bids.
Stock market trading will also takes place online. This procedure is
much quicker and less complicated than trading in the physical stock market.
Online stock market trading engrosses the real time placement of buying and
selling orders for stocks. The transaction is accomplished when the trading
system is capable to match bids and a confirmation is received.
III. Benefits of Stock Market Trading:
• It promotes economic growth.
• It helps companies raise capital and handle financial issues.
• It ensures that money is invested in businesses to enhance profit potential.
• It helps investors realize substantial profits.

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IV. Drawbacks of Stock Market Trading:
• It proposes lower leverage than other forms of trading, such as Forex trading.
• The short selling of stocks is hard, because stock prices do not appreciate
significantly in a short span of time. Accordingly, there is a wait period before
you can book healthy profits.
• It is traded for limited hours in a day.
V. Commodity trading: The terms “commodities” and “futures” are often used to
depict commodity trading or futures trading. It is similar to the way “stocks”
and “equities” are used when investors talk about the stock market.
Commodities are the actual physical goods like gold, crude oil, corn,
soybeans, etc. Futures are contracts of commodities that are traded at a
commodity exchange like MCX. Apart from numerous regional exchanges,
India has three national commodity exchanges namely, Multi Commodity
Exchange (MCX), National Commodity and Derivatives Exchange (NCDEX)
and National Multi-Commodity Exchange (NMCE). Forward Markets
Commission (FMC) is the regulatory body of commodity market.
It is one of a few investment areas where an individual with limited
capital can make extraordinary profits in a relatively short period of time.
Many people have become very rich by investing in commodity markets.
Commodity trading has a bad name as being too risky for the average
individual. The fact is that commodity trading is only as risky as you want to
make it. Those who treat trading as a get-rich-quick scheme are likely to lose
because they have to take big risks. If you act carefully, treat your trading like
a business and are willing to settle for a reasonable return, the possibility of
success is very high.
The course of trading commodities is also known as futures trading.
Unlike other kinds of investments, such as stocks and bonds, when you trade
futures, you do not really buy anything or own anything. You are speculating
on the future direction of the price in the commodity you are trading. This is
like a bet on future price direction. The terms "buy" and "sell" merely indicate
the direction you expect future prices will move. If, for example, you were
speculating in wheat, you would buy a futures contract if you thought the price
would be going up in the future. You would sell a futures contract if you

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 thought the price of wheat would go down. For every trade, there is always a
buyer and a seller. Neither person has to own any wheat to participate. But he
has to deposit sufficient capital with a brokerage firm to insure that he will be
able to pay the losses if his trades lose money.
3.2.10 FOREX MARKET
Forex trading is the immediate trade of one currency and the selling of
another. Currencies are traded through an agent or dealer and are traded in
pairs. For example Euro (EUR), US dollar (USD), British pound (GBP) or
Japanese Yen (JPY).
Here you are not buying anything physical; this type of trading is
confused. Think of buying a currency as buying a share of a particular
country. When you purchase say Japanese Yen, you are in effect buying a
share in the Japanese financial system, as the price of the currency is a direct
reflection of what the market thinks about the current and future health of the
Japanese economy. In common, the exchange rate of a currency versus other
currencies is a reflection of the condition of that country's financial system
compared to the other countries financial system.
Unlike other financial markets like the New York Stock Exchange, the
Forex spot market has neither a physical location nor a central exchange. The
Forex market is measured an Over-the-Counter (OTC) or Interbank market,
due to the fact that the entire market is run electronically within a network of
banks continuously over a 24-hour period.
Until the late 1990's only the big guys could play this game. The first
requirement was that you could trade only if you had about ten to fifty million
bucks to start with Forex. Forex was initially intended to be used by bankers
and large institutions and not by small guys. However because of the rise of
the Internet, online Forex trading firms are now able to offer trading accounts
to 'retail' traders. All you need to get started is a computer, a high-speed
Internet connection, and the information.

Benefits of Forex Trading

• Forex is the largest market.

• No Bulls or Bears!

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 • Forex trading online offers great leverage
• Forex prices are predictable.
• Forex trading online is commission free
• Forex trading online is instant.

3.2.11 REAL ESTATE AS AN INVESTMENT OPTION

The growth curve of Indian economy is at an all time high and contributing to
the upswing is the real estate sector in particular. Investments in Indian real estate
have been strongly taking up over other options for domestic as well as foreign
investors.
The boom in the sector has been so appealing that real estate has turned out to
be a convincing investment as compared to other investment vehicles such as capital
and debt markets and bullion market. It is attracting investors by offering a possibility
of stable income yields, moderate capital appreciations, tax structuring benefits and
higher security in comparison to other investment options.
A survey by the Federation of Indian Chambers of Commerce and Industry
(FICCI) and Ernst & Young has predicted that Indian real estate industry is poised to
emerge as one of the most preferred investment destinations for global realty and
investment firms in the next few years. The potential of India's property market has a
revolutionizing effect on the overall economy of India as it transforms the skyline of
the Indian cities mobilizing investments segments ranging from commercial,
residential, retail, industrial, hospitality, healthcare etc. But maximum growth is
attributed to its growth from the booming IT sector, since an estimated 70 per cent of
the new construction is for the IT sector.
Real estate industry research has also thrown light on investment opportunities
in the commercial office segment in India. The demand for office space is expected to
increase significantly in the next few years, primarily driven by the IT and ITES
industry that requires an projected office space of more than 367 million sq ft till
2012-13.

3.2.12 INVESTMENT IN GOLD

Gold has got lot of emotional value than monetary value in India. India is the
largest consumer of gold in the world. In western countries, you can find most of their

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 gold in their central banks. But in India, we use gold mainly as jewels. If you look at
gold in a business sense, you will understand that gold is one of the all time best
investment tool. My dear readers, today I would like to discuss on investments in gold
and its potential.

3.2.13 HEDGE FUNDS

Over the last 15 years, hedge funds have become increasingly popular with
high net worth individuals, as well as institutional investors. The number of hedge
funds has risen by about 20% per year and the rate of growth in hedge fund assets has
been even more rapid.
A hedge fund is a private investment fund, charging a performance fee and is
open to only a limited number of investors. These funds are like mutual funds, which
collect money from investors and use the proceeds to buy stocks and bonds. They can
invest on almost any type of opportunity; in any market where in good returns are
expected with low risk levels.

Hedge Fund Risks:

• Lack of transparency
• Limited liquidity
• Difficulty accessing quality hedge funds
• Unreliable or incomplete return data
• Valuation risk
• Asymmetrical nature of Hedge fund returns distributions [SKEW]
• Counterparty risk [Leverage]

3.2.14 PRIVATE EQUITY INVESTMENTS

Private equity investment is the most important funding source in the

entrepreneurial marketplace? Private equity investments contribute to the funding of
around 25 times the number of businesses the venture capitalists fund each year.
Private equity investments are usually derived from a high net-worth individual who
represents an essential source of funding for early stage, high-risk ventures. It is
estimated that one-seventh of the 300,000 + start/early growth firms in the US receive
funding from angel investors. This translates into over $20 billion of investment in

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 approximately 50,000 deals each year. This investment group exceeds venture capital
sources which are estimated at $5 - $7 billion spread over 1,000 venture capital
investments each year.

Private equity investors have proven to be the single most important players in
the entrepreneurial marketplace. Private capital investors fund thirty to forty times as
many entrepreneurial companies as the entire venture capital industry and estimates
put the total amount between $20 - $60 billion annually.

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 CHAPTER 4

DATA ANALYSIS AND

INTERPRATATION

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4.1 Report Analysis:
An analysis is made on the responses received from 40 sample comprising of
investors from Bhopal city. The objective of the report is to find out the investor’s
behaviour on various investment avenues, to find out the needs of the current and
future investors.
The questionnaire contains 22 questions prepared in order to collect
information of various areas of financial awareness, willingness and perception of
investors in Bhopal. Based on these experiences an analysis is made to find out a
pattern in their investments.
An analysis and interpretations are drawn to develop an understanding of
investment market. Interpretations are made on a rational basis, these interpretations
may be correct or may not be correct but care is taken to draw a valid and approvable
interpretation. based on researcher’s understanding about the subject matter.
Analysis is made only from the information collected through questionnaires
no other data or information is taken in to consideration for purpose of the analysis.

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4.2 Analysis of the Survey:
TABLE 1: DEMOGRAPHICS OF THE SAMPLE INVESTOR

PARAMETER NO: OF INVESTORS PERCENTAGE

GENDER
MALE 24 60%
FEMALE 16 40%
TOTAL 40 100%

AGE GROUP
BELOW 20 0 0%
BETWEEN 20 – 30 10 25%
BETWEEN 30 – 40 10 25%
ABOVE 40 20 50%
TOTAL 40 100%

QUALIFICATION
UNDER GRADUATES 5 12.5%
GRADUATES 10 25%
POST GRADUATES 20 50%
OTHERS 5 12.5%
TOTAL 40 100%

OCCUPATION
SALARIED 15 37.5%
BUSINESS 10 25%
PROFESSIONAL 5 12.5%
HOUSE WIFE 9 22.5%
RETIRED 1 2.5%
TOTAL 40 100%

ANNUAL INCOME
BELOW Rs. 2,00,000 5 12.5%
Rs. 2,00,000 - 4,00,000 10 25%
Rs. 4,00,000 - 6,00,000 15 37.5%
ABOVE Rs, 6,00,000 10 25%
TOTAL 40 100%

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Interpretation: Table 1 above shows, that 24(60%) of the investors are men and the rest
16(40%) are females. Generally males bear the financial responsibility in Indian
society, and therefore they have to make investment (and other) decisions to fulfill the
financial obligations.
When it comes to age, it was found that 25% are young and significant
number under the age group of 20 – 30. 25% of them are in the age group of 30 to 40.
50% of them are above 40 years of age. There are no investors below 20 years of age.
Nearly 37.5% of the investors belong to the salaried class, 25% were business class,
12.5% were professionals, 22.5% were housewives and the rest were retired.
It was found that irrespective of annual income they earn all the investors
interested in Investments since today’s inflated cost of living is forcing everyone to
save for their future needs, and invest those saved resources efficiently.
20(50%) of the individual investors covered in the study are postgraduates;
10(25%) investors are graduates and 5(12.5%) of the investors are under-graduates,
and 5(12.5%) investors are categorized as others who are either illiterates, had less
education than under graduation or who are more qualified than post graduates. It is
interesting to note that most investors (covered in the study) can be said to possess
higher education (Bachelor Degree and above), and this factor will increase the
reliability of conclusions drawn about the matters under investigation.
5(12.5%) of the investors are earning less than 2 lakhs per annum, 10(25%)
investors are earning between 2 lakhs and 4 lakhs, 15(37.5%) investors are earning
between 4 lakhs and 6 Lakhs, 10(25%) investors are earning more than 6 lakhs per
annum. Since most of the investors are below 4 lakhs annual earnings, many of them
are non risk takers.

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Table 2 other characteristics of sample investor
Que 1. How many investors able to lose their principle amount?

Table 2.1 Investors willing to lose principal amount

PARAMETER NO OF INVESTORS PERCENTAGE
YES 5 12.5
NO 35 87.5
TOTAL 40 100

No. of Investors
yes no
12%

88%

Interpretation: since many of the investors annual earnings are below 2 lakhs and 4
lakhs, many of them do not take the risk of losing their principal investment
amount. 88% of the sample investors are not ready to lose their principal investment
amount. 12% are ready to take risk of losing their principal up to certain extent.

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Que 2. What time period preferred by investors?

Table 2.2 TIME PERIOD PREFERED TO INVEST

PARAMETER NO OF INVESTORS PERCENTAGE
SHORT TERM 5 12.5
MEDIM 25 62.5
LONG TERM 10 25
TOTAL 40 100

No. of Investors

long term Yes

20% 32%

No
48%

Interpretation: It’s interesting to know that many of the investors prefer to invest their
money for medium term i.e. from 1 – 5 yrs, instead of short term or long term. 12% preferred
short term, 62% preferred medium term, and 25% preferred long term.

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Que 3. How many number of investors interested to investing in equity market?

Table 2.3 INVESTMENT IN EQUITY MARKET

PARAMETER NO OF INVESTORS PERCENTAGE
YES 10 25
NO 30 75
TOTAL 40 100

No. of Investors

Yes
40%

No
60%

Interpretation: Out of the total sample investors only 10% of the investors invest in equity
share market through their DEMAT A/C, 30% of the investors never invested in equity
shares. The investors who invest in equity share market are asked another question, what
would they do if the stock market falls immediately after their investment, many of them
replied that they would wait till the market increases instead of selling them at a loss, very
few answered that they would average the investment by buying some more shares.

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Que 4. How many number of investors prepare their family budget?

Table 2.4 FAMILY BUDGET

PARAMETER NO OF INVESTORS PERCENTAGE
YES 25 62
NO 15 37
TOTAL 40 100

No. of Investors
Yes No

40%

60%

Interpretation: 62% of the sample investors had a monthly family budget for their daily
expenditure. 37% of the investors replied they never thought of having a budget calculation,
and few think of having a budget but never implemented so far. Many people with excess
money never cared to make any family budgets.

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Que 6. What is the investment target of the investors?

Table 2.5 INVESTMENT TARGET

PARAMETER NO OF INVESTORS PERCENTAGE
YES 15 37
NO 25 62
TOTAL 40 100

No. of Investors
Yes No

40%

60%

Interpretation: It’s interesting to know that almost same proportion of investors have
different thoughts, 37% of the investors have an investment target every year, and 62% of the
investors do not go for any targets for investment. On personal questioning many of the
investors who had an investment target every year are not able to reach their targets due to
contingent expenses. Few investors invest regularly but never thought of having a target
every year.

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Que 7. How many number of investors prefer financial advisor?

Table 2.6 FINANCIAL ADVISOR

PARAMETER NO OF INVESTORS PERCENTAGE
YES 16 40
NO 24 60
TOTAL 40 100

No. of Investors

25
20
15
No of investers
10
5
0
Yes No

Interpretation: 60% of the investors never had a financial advisor, they never approached an
advisor for their financial needs, the reason may be inadequate income and excess
expenditure, and there wouldn’t be surplus money to worry about. 40 % of the investors have
financial advisors, who manage their investments.

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Table 3 Objectives of Investment

Que 1. What is the objective of investment?

Table 3.1 SAVINGS OBJECTIVE
PARAMETER VOTES WEIGHTS RANKING
CHILDREN'S EDUCATION 25 10 1
RETIREMENT 20 8 3
HOME PURCHASE 15 6 4
CHILDREN'S MARRIAGE 20 8 5
HEALTHCARE 15 6 2
OTHERS 5 2 6
TOTAL 100 40

VOTES
30
20
10
0
VOTES

Interpretation: the savings objectives of the sample investors, investors are given option to
select one or more savings objectives, since there may be one or more answers, weights are
given for each parameter bases on the votes given by the investors, the maximum weight age
represents many investors have that as main objective. Based on the weights calculated ranks
are given in the order of maximum weight age given by investors. First rank is given to
children’s education, many investors feel that, investing money for the future of the Childs
education is very important than any other need. Many of the investors are in the age group of
20 – 30 and 30 – 40 as of now they are thinking of saving for their children’s marriage. So
children’s marriage is given last rank. After children’s education investors are saving for their
own health care. There is a greater need for Indians to save for their health care who are
living a mechanical life. Retirement and home purchase are given subsequent ranks after
health care.

Que 2. What is the main purpose of investment?

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 Table 3.2 PURPOSE BEHIND INVESTMENT
PARAMETER VOTES WEIGHTS RANK
WEALTH CREATION 25 10 3
TAX SAVING 30 12 1
EARN RETURNS 20 8 2
FUTURE EXPENDITURE 25 10 4
TOTAL 100 40

VOTES
40
20
0

VOTES

Interpretation: All the investors have very common purposes for investing, they have more
than one purpose for investing their money. Salaried people invest for tax savings, and for
future expenditure, business people invest for the purpose of earning returns. Almost all the
investors have all the 4 purposes behind investing their money.

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Que 3. What are the factors which investors considered before investment?

Table 3.3 FACTORS CONSIDERING BEFORE INVESTING

PARAMETER VOTES WEIGHTS RANKING
SAFETY OF PRINCIPAL 40 16 1
LOW RISK 30 12 2
HIGH RETURNS 20 8 3
MATURITY PERIOD 10 4 4
TOTAL 100 40

VOTES
40
30
20
10
0
VOTES

Interpretation: When the investors are asked about the factors considering before
investment many of them have voted for safety of principal and low risk. First rank is given
to safety of principal and 2 nd to low risk. Here there are some contradicting results, some
investors expect high returns at a very low risk, and this is not possible in practical Indian
investment avenues. Investment believes in a proved principle, “higher the risk higher the
returns, lower the risk lower the returns”. Investors need to know about this principle before
investing.

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 CHAPTER 5

FINDINGS & SUGGESTIONS

5.1 Findings:

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 1. The study reveals that male investors dominate the investment market in India.
2. Most of the investors possess higher education like graduation and above.
3. Majority of the active and regular Investors belong to accountancy and related
employment, non-financial management and some other occupations are very few.
4. Most investors opt for two or more sources of information to make investment
decisions.
5. Most of the investors discuss with their family and friends before making an
investment decision.
6. Percentage of income that they invest depend on their annual income, more the
income more percentage of income they invest.
7. The investors’ decisions are based on their own initiative.
8. The investment habit was noted in a majority of the people who participated in the
study.
9. Most Investors prefer to park their funds in avenues like Life insurance, FD, Gold and
Real Estate.
10. Most of the investors get their information related to investment through electronic
media (TV) next to print media (News paper/ Business news paper/ Magazines)
11. Most of the investors are financial illiterates.
12. Increase in age decrease the risk tolerance level.
13. Women are attracted towards investing gold than any other investment avenue.

5.2 Suggestion:
The role of uncertainty and the knowledge about the return on Investment Avenue are
important components of any investment. The extent of an investor’s ability to tolerate these
uncertainties of return is referred as risk tolerance level of an investor (Schaefer, 1978). Risk
tolerance tends to be subjective rather than objective.
Schaefer described the relation this way: “two persons may very well agree on the
riskiness of a set of gambles, but may nevertheless prefer different gambles, rank ordering
them differently according to their personal tolerance. There are two common methods of
estimating investors’ tolerance of risk. The first method is a clear understanding of the
investor and his/her history with investment securities. The second method is to use a
questionnaire designed to elicit feelings about risky assets and the comfort level of the
investor given certain changes in the portfolio or certain investment scenarios.

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 The second method is used to know the risk tolerance level of the investors. Based on
the responses to the questionnaire, the cumulative scale is constructed and scores are assigned
to each investor accordingly to categorize the respondents in to i.e. Low, Moderate and High
risk tolerance level. The investors are divided into 3 categories i.e., A, B and C depending on
their risk tolerance starting with Low risk tolerance, Moderate risk tolerance and High risk
tolerance.
Generally investors with a low risk tolerance act differently with regard to risk than
individuals with a high risk tolerance. Investor with a high level of risk tolerance would be
comfortable with market volatility, while low risk-tolerance individuals require stability and
are averse to uncertainties. (MacCrimmon & Wehrung, 1986). Individuals with low levels of
risk tolerance require lower chances of a loss, choose not to operate in unfamiliar situations
and require more information about the performance of an investment (MacCrimmon &
Wehrung).
Table4 suggested portfolio construction based on age group and level of risk

Parameter Level of risk - percentage of income to be apportioned Total

Age Group Low Risk Medium Risk High Risk

Between 20 - 30 30% 50% 20% 100%

Between 30 - 40 50% 35% 15% 100%
Above 40 70% 20% 10% 100%
Total 100% 100% 100%

Portfolio construction:
Step 1: Identify the age group of the investor; check in which age group he comes under.
Suggest suitable portfolio from the above table.
Example: An investor of age 36 working in public sector Company has approached you to
invest his 8 lakh of money in a suitable investment.
Advice: the investor comes under the age group 30 – 40.
His suitable portfolio will be
1. 50% invest in low risk investment avenues.
2. 35% invest in medium risk avenues.
3. 15% invest in high risk avenues.

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 CHAPTER 6

COCLUSION

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Conclusion
This report is a reflection of the behaviour of various categories of investors.
Selection of a perfect investment avenue is a difficult task to any investor. An effort is made
to identify the tastes and preferences of a sample of investors selected randomly out of a large
population. Despite of many limitations to the study. I was successful in identifying some
investment patterns, there is some commonness in these investors and many of them
responded positively to the study.
This report concentrated in identifying the needs of current and future investors,
investor’s preference towards various investment avenues are identified based on their
occupation. Investors risk in selecting a particular avenue is dependent on the age of that
investor.

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 CHAPTER 7

BIBILOGRAPHY

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 7.1 RESEARCH PAPERS

An Empirical study on Indian individual investor’s behaviour, by Syed Tabassum

Sultana.

WEB SITES

www.tax4India.com
www.economictimes.Indiatimes.com
www.business-standard.com
www.Indiamoney.com
www.moneymanagementideas.com
www.savingwala.com

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 CHAPTER 8
QUESTIONNAIRE

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Questionnaire

1. Are you aware of the following investment avenues? (Tick which ever applicable in the boxes).

Safe/Low Risk Investment Avenues: High Risk Investment Avenues:

 Savings Account.  Equity Share Market.
 Bank Fixed Deposits.  Commodity Market.
 Public Provident Fund.  FOREX Market.
 National Savings Certificates.
 Post Office Savings. Traditional Investment Avenues:
 Government Securities.  Real Estate (property).
 Gold/Silver.
Moderate Risk Investment Avenues:  Chit Funds.
 Mutual Funds.
 Life Insurance. Emerging Investment Avenues:
 Debentures.  Virtual Real Estate.
 Bonds.  Hedge Funds.
 Private Equity Investments.
 Art and Passion.

2. What do you think are the best options for investing your money? (choose from above list)
(Rank in the order of preference)

1.___________________________________ 2.___________________________________ 3.______________________________________

4.___________________________________ 5.___________________________________ 6.______________________________________

3. Reasons for selecting these options :

1_________________________________________________________________________________

2_________________________________________________________________________________

4. In the past, you have invested mostly in (write as many as applicable)

_____________________________________________________________________________________________________________

_____________________________________________________________________________________________________________

5. In which sector do you prefer to invest your money?

 Private Sector  Government Sector  Public Sector  Foreign Sector

6. What are the important factors guiding your investment decisions? (Return, safety of
principal, diversification, progressive values, etc.)?

_________________________________________________________________________________________________________________
7. What are your savings objectives?
 Children’s Education  Retirement  Home Purchase  Children’s Marriage
 Healthcare  others_______________________________________________________________

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8. What is your investment objective?
 Income and Capital Preservation  Long-term Growth
 Growth and Income  short-term Growth
 Others_________________________________________________________________________________________________

9. What is the purpose behind investment?

 Wealth Creation  Tax Saving  Earn Returns  Future Expenses
 Others________________________________________________________________________________________________

10. Have you set aside funds specifically for the education and marriage of your children?
If yes, please give amounts and how the funds are held
Education: Amount Rs.__________________________________ invested in ________________________________
Marriage: Amount Rs.__________________________________ invested in ________________________________

11. Do you have a formal budget for family expenditure?

 Yes  No
12. Do you have a savings and investment target amount you aim for each year?
 Yes if yes: Amount_______________________________________________________________________
 No
13. At which rate do you want your investment to grow?
 Steadily  At an Average Rate  Fast

14. Which factor do you consider before investing?

 Safety of Principal  Low Risk  High Returns  Maturity Period

15. Do you invest your money in share market? (through a DEMAT A/C)
 Yes  No
If yes: Imagine that stock market drops after you invest in it then what will you do?
 Withdraw your money  Wait to increase  Invest more in it

16. How often do you monitor your investment?

 Daily  Monthly  Occasionally

17. What percentage of your income do you invest?

 0-15%  15-30%  30-50%

18. What is the time period you prefer to invest?

 Short-term (0-1yrs)  Medium-term (1-5yrs)  Long-term (>5yrs)

19. Can you take the risk of losing your principal investment amount?
 Yes  No If yes: What percentage ________________________

20. What is your source of investment advice?

 Newspapers  News Channels  Family or Friends
 Books  Internet  Magazines
 Advisors  Certified Market Professional/Financial Planners
Personal Details

(Personal details are kept highly confidential; these details will not be revealed to any third party)

Name: ____________________________________________________ Designation: _________________________________________

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Organization: ________________________________________

Age Group:
 Below 20  Between 20-30  Between 30-40  Above 40
Qualification:
 Under Graduate  Graduate  Post Graduate
 Other: ______________________________________________

Occupation (what category do you come under):

 Salaried  Business  Housewife
 Student  Professional  Retired
 Other: ______________________________________________

Annual income:
 Below Rs. 2,00,000  Rs. 2,00,000- Rs 4,00,000
 Rs. 4,00,000-Rs 6,00,000  Above Rs. 6,00,000
Do you have a financial advisor?
 Yes  No

What best describes your investment experience?

 Beginning (no investment experience)
 Moderate (comfortable with fixed deposits, chit funds, post office)
 Knowledgeable (has bought or sold individual shares of stock or bonds)
 Experienced (frequently trade in stocks, commodities, options and futures)

Date:

Signature:

You have successfully completed this Questionnaire

Thank you again for your time and support!

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