CHAPTER 1

INTRODUCTION

1
INTRODUCTION

Investing in various types of assets is an interesting activity that attracts people from all
walks of life irrespective of their occupation, economic status, education and family
background. When a person has more than he requires for current consumption, he would be
coined as a potential investor. Investment means the employment of funds with the aim of
achieving additional income or growth in value.

Non-Resident Indians or NRI's refers to a person of Indian origin staying in a different

global location for employment or carrying on business or vocation. they spread across the
world with an estimated population of 40 to 100 millions.

Non-Resident Indians (NRI's) have multiple investment opportunities in present day

scenario in terms of real estate investments in India, saving and deposits. Provision of home
loan and other monetary schemes have made investment procedure easy and convenient.

NRI's can make direct investment in proprietary / partnership concerns in India as also in
the primary issues of shares / debentures of Indian companies. They can also make portfolio
investment ie., purchase of shares / debentures of Indian companies through stock exchanges
in India.

To an NRI , a base in the homeland also brings with it a sense of security. The number of
NRI's who are investing in property for sentimental reasons and for better investment returns
is quickly multiplying. The investment is a commitment of person's funds to derive future
income in the form of interest , dividend, rent, premium, pension benefits or appreciation of
the value of their principle capital.

SCOPE OF THE STUDY

The study aims to evaluate the investment decision among NRI's and also analyse the
preference of NRI's with available investment schemes and to understand the attitude of NRI's
investment in India. The survey is limited to 50 NRI's from Kerala. Only very few studies have

2
been conducted among the NRI's about the investment decisions, effectiveness of major saving
schemes and about major investment problems encountered by NRI's.

OBJECTIVES OF THE STUDY

1. To analyse various modes of investment opportunities available.

2. To get an idea about the volume and pattern of remittance from abroad and the impact of
such remittance.

3. To probe the various preference of the investor's certain investments.

4.To check whether the NRI's get proper benefits on their investments.

RESEARCH METHODOLOGY

The study has been conducted by collecting both primary and secondary data. The data
has been collected from 50 NRI's from differentd districts in Kerala. The survey has been
conducted by issuing a questionnaire containing 16 questions related to investment matters.
For the purpose of analysis , simple statistical tools like percentages were used. Tables were
also used for the interpretation of the collected data.

LIMITATIONS OF THE STUDY

1.Some of the respondents of the survey were unwilling to share information.

2.The study was limited only for a limited time

3.The primary data required for the study were collected from a limited number of respondents
and are subject to such normal errors.

4.The information given by the respondents might biased because some of them might not be
interested to give correct information.

5. The research was carried out in a short period. Therefore the sample size and other
parameters were selected accordingly so as to finish the work within the given time frame.

3
CHAPTERISATION

1. Introduction:- Statement of the problem, Objectives of the study, Scope, Methodology and
Limitations of the study.

2. Theoretical Overview.

3. Analysis and Interpretation of Data.

4. Findings , Suggestions and Conclusion.

4
 CHAPTER 2

THEORETICAL OVERVIEW

5
INVESTMENT

Investment means the employment of funds with the aim of achieving

additional income or growth in value. It is clearly established that investment involves long
term commitment. The essential quality of an investment is that it involves waiting for a
reward. It involves the commitment of resources which have been saved or put away from
current consumption in the hope that some benefits will acquire in future. In other words , an
investment is a sacrifice of current money or other resources for future benefits. There are two
types of investments , Direct Investment and Indirect Investments.

Investment is the allocation of monetary resources to assets that are expected

to yield some gain or positive return over a given period of time. Investment aims at
multiplication of money at higher or lower rates depending upon whether it is long term or
short term investment and whether it is risky or risk free investment. Investment activity
includes creation of assets or exchange of assets with profit motive. From the point of view of
people, the investment is a commitment of person's funds to derive future income in the form
of interest, dividend, rent, premium, pension benefits or appreciation of the value of their
principle capital.

IMPORTANCE OF INVESTMENT

1. Longer life expectancy or planning for retirement

Investment decisions have become significant as people retire between the

age of 55 and 60. Also the trend shows longer life expectancy. The earnings should therefore
be calculated in such a manner that a portion should be put away as savings. The importance
of investment decisions is further enhanced by the fact that there is increasing number of
women working in organisations. These women's will be responsible for planning their own
investments during their working life so that after retirement they are able to have a stable
income.

2. Increasing Rates of Taxation

Taxation is one of crucial factors in any country, which introduces an element

of compulsion in a person's savings. There are various forms of savings outlets in our country

6
in the form of investments which help in bringing down the tax level by offering deductions in
personal income.

3. Interest Rates

Another aspect which is necessary for a sound investment plan is the level of
interest rates. Interest rates vary between one investment and another. These may vary between
risky and safe investments; they may also differ due to different benefit schemes offered by the
investments. These aspects must be considered before actually allocating any amount.

4. Inflation

Inflation has become a continuous problem since the last decade. The investor
will try to search an outlet which will give him a high rate of return in the form of interest.
Coupled with high rates of interest he will have to find an outlet which will ensure safety of
principal. Before funds are invested erosion of the resources will have to consider in order to
make the right choice of investments.

5. Income

Another reason why investment decisions have assumed importance is the

general increase in the employment opportunities. The employment opportunities gave rise to
both male and female working force. More incomes and more avenues of investment have led
to the ability and willingness of working people to save and invest their funds.

6. Investment Channels

The investor in his choice of investments will have to try to achieve a proper mix
between high rate of return and stability of return to reap the benefits of both. Some of the
instruments available are corporate stock, Provident Fund, Life Insurance , Fixed Deposits in
the corporate sector, Unit Trust Schemes etc.

7
ELEMENTS OF INVESTMENT

1. Risk

Risk and uncertainity are an integral part of an investment decision. The word
risk is synonymous with the phrase variability of return. The main forces contributing to risk
are price and interest .Investment risk is just as important as measuring its expected rate of
return because minimizing risk and maximizing the rate of return are interrelated objectives in
the investment management. Risk is also influenced by external and internal considerations.
External risks are uncontrollable and broadly affect investment. These external risks are called
systematic risk. Risk due to internal enviornment of a firm or those affecting a particular
industry are reffered to as unsystematic risk.

2. Returns

Investors may buy and sell assets in order to earn returns on them; returns may
be simply defined as the difference between the purchase price and the selling price.The
returns, better know as reward from investments include both current income and capital gains
or losses which arise by the increase or decrease of the security prices. Returns therefore may
be expressed as the total annual income and capital gain as a percentage of investment.
Satisfactory returns are different for different people.

3. Time

Time is an important factor in investments. Time period depends on the attitude

of the investor who follows a buy and hold policy. A long term fund allocation is termed as an
investment. An investor is interested in a reasonable rate of return over a period of time. As
investments are examined over the time period, expected risk and return are measured. The
investor usually selects a time period and return that meet expectations of return and risk.

8
FEATURES OF INVESTMENT PROGRAMME

1. Safety of Principal

The safety sought in investment is not absolute and complete. It rather implies
protection against loss under reasonably likely conditions or variations . Diversification helps
to a great extend in proper investment programming. But it must be reasonably accomplished
and should not be carried out to extremes.

2. Liquidity

Every investor requires a minimum liquidity in his investment to meet

emergencies. Liquidity will be ensured if the investor buys a proportion of readily saleable
securites out of his total portfolio. If a portion of the investment can be converted into cash
without much loss of time, it will help him to meet emergencies. This depends upon the
marketability and trading facility.Investments like stocks , property or real estate cannot ensure
immediate liquidity.

3. Income Stability

Regularity of income at a consistent rate is necessary in any investment pattern.

Not only stabilty, it is also important to see that the income is adequate after taxes. It is possible
to find out some good securities, which pay practically all their earnings in dividends.

4. Appreciation and Purchasing Power Stability

Investor should balance their portfolio to fight against any purchasing power
instability. Investors should judge price level inflation; explore the possibility of gain and loss
in the investments available to them, limitations of personal and family considerations.

5. Legality and Freedom from Care

All investments should be approved by Law. Law relating to minors, estates,

trusts, shares and insurance should be studied. Illegal securities will bring out many problems
for the investor. The identity of legal securities and investment in such securities will also help
the investor in avoiding many problems.

6.Tangibility

9
 Intangible securities have many times lost their value due to price level inflation,
confiscatory laws or social collapse. Some investors prefer to keep a part of their wealth
invested in tangible properties like building, machinery and land.

7. Profitability

When safety of the principal is assured the next aspect of the investment are
expected returns. The higher rate of interest leads to increased savings and helps to increase
the profitability.

NON-RESIDENT INDIAN (NRI)

Non-Resident Indian or NRI refers to a person of Indian origin staying in a

different global location for employment or carrying on business or vocation. Most of the NRI
populate have migrated to alien countries for better job prospect and future , but with the advent
of global MNC's (Multi National Companies) and implementation of revised foreign policies
in India, the NRI's are driven to become a part of this fastest emerging economy. NRI's can
make investments in all the investment options, which are available to Resident Indians.
However, persons of Indian Origin can only make investments in non-agricultural business in
the country. To encourage this initiation of NRI's to resettle and return back to India, they are
granted the following facilities;

 Maintenance of blank accounts in India.

 Investments in securities or shares ,and deposits with Indian firms or companies.
 Investments in immovable properties in India.

Transferring of money to India is no longer a tedious procedure for the NRI's as

the availability of Efficient Money Exchange Service Providers helps them to send
money directly into any bank account within no time. Most of these service providers
offer PayPal transfers and 24x7 Customer Support for the expediency of NRI's. To
appreciate the interest of NRI's in India's immovable properties , the government of
India has to come up with beneficial investment policies for the NRI's. The Reserve
Bank of India allows them to acquire , hold, transfer or dispose of land by way of sale
or inheritance. Such properties are meant for the purchaser's bonafide residential use

10
 and they are purchased through normal banking channels or home loans or NRE and
FCNR (Foreign Currency Non-Resident Account).

INVESTMENT OPPORTUNITIES FOR NRI'S

To attract foreign investment in India, Government is offering several facilities to

Non-Resident Indians (NRI's), Persons of Indian Origin (PIO) and Overseas Corporate Bodies
(OCBs). While NRI refers to an Indian citizen who is residing outside India, PIO refers to an
individual who at anytime held an Indian passport or whose father or grandfather was a citizen
of India. According to the Laws, NRIs/PIOs/OCBs are permitted to open bank accounts in
India out of funds remitted from abroad. The foreign exchange brought in from abroad or out
of funds is legitimately due to them in India, with authorised dealer.The Reserve Bank of India
(RBI) has granted general permission to NRI's/PIO's, for undertaking direct investments in
Indian companies.

NRI's ROLE IN ECONOMIC DEVELOPMENT OF INDIA

In the age of economy slow down, India is passing through a bad phase and its
monetary condition is severely affected. Inflation rate is high and people are unable to manage
their daily life.In this context India Government has great expectations from millions of Non-
Resident Indians to resolve the crisis through making investments in India

NRI's generated earnings is estimated to be $250 billion and is one-third of the

GDP of India.This clearly indicates that they can contribute a lot to Indian economy and
enhance its fiscal growth. Since then India is reaching out more NRI's for their attention to
support in the India's developmental activities. There are numerous opportunities provided by
the government to the NRI's to invest in India.

The RBI has directed the Indian Banks to attract NRI deposits and there is numerous
short and long term investment plan option for them. Besides, NRI's are encouraged to
establish business and educational institutions in India. Even though NRI's contribution is not
visible but they are helping their country through varied activities in India. Many reports reveal

11
that NRI's are major source of Direct Foreign Investment , market development, technology
transfer, charity, tourism, political contributions and more substantial flows of knowledge in
India.

DIFFERENT TAX BENEFITS AVAILABLE TO NRI's

1.Bank Deposits investment in shares , units of Mutual Funds etc are exempt from
wealth tax in India.

2.Interest earned on NRE and FCNR accounts is completely tax-free.

3.In 1997, gift tax was abolished. So both the donor as well as the recipient did not have
to pay any tax on the gifts received. Consequently people started misusing the vacuum
left behind by scrapping of gift tax. There was a widespread transfer of insincere gifts
from the non relatives. In order to fill up this void , Section56 (2)(v) of Income Tax Act
was passed in 2004. As per Section56 (2)(v) of the Income Tax Act, any amount
exceeding Rs25,000 obtained by a person or a Hindu Undivided Family (HUF) without
any consideration from non-relative would be taxed. The only cases excempted were
the gifts given during marriage , inheritence left behind in a will or if the payer has died.

12
 CHAPTER 3

ANALYSIS AND INTERPRETATON OF DATA

13
 AGE WISE CLASSIFICATION OF THE RESPONDENTS

Table No 3.1

Age Number of Respondents % of Respondents

20-40 Years 32 64
40-60 Years 14 28
Above 60 Years 4 8
Total 50 100

Figure No 3.1

AGE OF THE RESPONDENTS

70

60

50

40
% of Respondents
30

20

10

0
20-40 Years 40-60 Years Above 60 Years

Interpretation:

The table shows that 64% of respondents are under the age
between 20-40 years and 28% are between 40-60 years and 8% of
respondents are above 60 years

14
 GENDER WISE CLASSIFICATION OF THE RESPONDENTS

Table No 3.2

Gender Number of Respondents % of Respondents

Male 34 68
Female 16 32
Total 50 100

Figure No 3.2

GENDER OF THE RESPONDENTS

80

70

60

50

40
% of Respondents
30

20

10

0
Male Female

Interpretation:

The Gender wise classification shows that the 68% of

respondents are Male and the 32% of the respondents are Female.

15
 INCOME WISE CLASSIFICATION OF RESPONDENTS

Table No 3.3

Income Number of Respondents % of Respondents

Below 25000 10 20
25000-50000 20 40
50000-100000 12 24
Above 100000 8 16
Total 50 100

Figure No 3.3

INCOME OF THE RESPONDENTS (in rupees)

45
40
35
30
25
20
15 % of Respondents
10
5
0

Interpretation:

As per this table 20% of respondents are below 25000Rs income

group, 40% are between 25000-50000, 24% are between 50000-100000
and 16% of respondents are above 100000Rs income group.

16
 BANK WISE CLASSIFICATION IN WHICH THE
RESPONDENTS HAVE BANK ACCOUNTS

Table No 3.4

Banks Number of Respondents % of Respondents

Private Sector Banks 36 72
Public Sector Banks 14 28
Total 50 100

Figure No 3.4

BANK WISE CLASSIFICATION

80

70

60

50

40
% of Respondents
30

20

10

0
Private Sector Banks Public Sector Banks

Interpretation:

The table shows that 72% of the respondents have account in

private sector banks and 28% of the respondents have accounts in public
sector banks.

17
 TYPES OF BANK DEPOSITS OF THE RESPONDENTS

Table No3.5

Types of Deposit Number of Respondents % of Respondents

Current Deposit 4 8
Fixed Deposit 6 12
Savings Deposit 40 80
Total 50 100

Figure No 3.5

TYPES OF BANK DEPOSITS

90

80

70

60

50

40 % of Respondents

30

20

10

0
Current Deposit Fixed Deposit Savings Deposit

Interpretation:

This table shows that 8% of respondents have current deposit,

12% have fixed deposit, and 80% have savings deposit.

18
 PERCENTAGE OF SALARY INVESTED

Table No 3.6

Percentage of Salary Number of % of Respondents

Respondents
Less than 10% 10 20
10-25% 32 64
25-50% 4 8
More than 50% 4 8
Total 50 100
Figure No 3.6

PERCENTAGE OF SALARY INVESTED

70

60

50

40

30 % of Respondents

20

10

0
Less than 10-25% 25-50% More than
10% 50%

Interpretation:

As per the table 20% of respondents invest less than 10% of

salary, 64% invest between 10%-25%, 8% invest between 25%-50% , and
8% invest more than 50% of their salary.

19
 PURPOSE OF INVESTMENT

Table No 3.7

Purpose Number of % of Respondents

Respondents
Regular Income 24 48
Education of Children 6 12
Old Age Securities 2 4
Other 18 36
Total 50 100
Figure No 3.7

PURPOSE OF INVESTMENT

60

50

40

30
% of Respondents
20

10

0
Regular Education of Old Age Other
Income Children Securities

Interpretation:

This table shows that 48% of respondents invest for Regular

Income, 12% for education of children , 4% for old age securities and 36%
of respondents for other purpose.

20
 PREFERRED AREA OF INVESTMENT

Table No 3.8

Preferred Area Number of % of Respondents

Respondents
Bank Deposit 38 76
Insurance 6 12
Real Estate 4 8
Company Securities 2 4
Total 50 100
Figure No 3.8

PREFFERED AREA OF INVESTMENT

80

70

60

50

40
% of Respondents
30

20

10

0
Bank Deposit Insurance Real Estate Company
Securities

Interpretation:

According to the table 76% of the respondents prefer bank deposits

, 12% prefer insurance, 8% prefer real estate and 4% prefer to invest in
Company Securities.

21
 PERSONS CONSULTED IN INVESTMENT MATTERS

Table No 3.9

Persons Number of Respondents % of Respondents

Colleagues 8 16
Family Members 20 40
Bank Agents 8 16
Others 14 28
Total 50 100
Figure No 3.9

PERSONS CONSULTED IN INVESTMENT MATTERS

45
40
35
30
25
20 % of Respondents
15
10
5
0
Colleagues Family Bank Agents Others
Members

Interpretation:

As per the above table 16% of respondents consult colleagues,

40% consult family members , 16 % consult the bank agents and 28%
consult others in their investment matters.

22
ARE THE RESPONDENTS GETTING PROPER TAX REDUCTIONS

. Table No 3.10

Particulars Number of Respondets % of Respondents

Yes 42 84
No 8 16
Total 50 100

Figure No 3.10

ARE THE RESPONDENTS GETTING PROPER TAX

REDUCTIONS

90

80

70

60

50

40 % of Respondents

30

20

10

0
Yes No

Interpretation:

The above table shows that 84% of the respondents are getting
proper tax reductions and 16% are not getting proper tax reductions.

23
 DEGREE OF RISK TAKEN WITH FINANCIAL DECISION

Table No 3.11

Risk Number of Respondents % of Respondents

Very Small 8 16
Medium 38 76
Large 4 8
Total 50 100
Figure No 3.11

DEGREE OF RISK TAKEN

80

70

60

50

40
% of Respondents
30

20

10

0
Very Small Medium Large

Interpretation:

The table shows that 16% of the respondents are taking a very
small risk, whereas 76% respondents are taking medium risk and 8% are
taking large risk.

24
 IS NRI's GETTING BETTER RETURNS ON THEIR
INVESTMENT

Table No 3.12

Opinion Number of Respondents % of Respondents

Yes 38 76
No 12 24
Total 50 100
Figure No 3.12

IS NRI's GETTING BETTER RETURNS ON THEIR

INVESTMENT

80

70

60

50

40
% of Respondents
30

20

10

0
Yes No

Interpretation:

As per the above table the 76% of respondents are saying NRI's
are getting better returns on their investment whereas 24% of respondents
are not getting better returns on their investment.

25
 HOW THE PERSONAL INVESTMENTS HAVE CHANGED

TableNo 3.13

Particulars Number of % of Respondents

Respondents
Mostly towards Lower Risk 18 36
No or Minimal Changes 28 56
Mostly towards Higher Risk 4 8
Total 50 100

Figure No 3.13

HOW THE PERSONAL INVESTMENTS HAVE CHANGED

60

50

40

30
% of Respondents
20

10

0
Mostly towards No or Minimal Mostly towards
Lower Risk Changes Higher Risk

Interpretation:

The above table shows that 36% of the respondents personal

investments have changed to Mostly towards lower risk, 56% changed
with No or Minimal changes and 8% towards Higher risk

26
 AVERAGE ANNUAL RATE OF RETURN

Table No 3.14

Particulars (in %) Number of Respondents % of Respondents

0-4 4 8
4-8 28 56
8 - 12 14 28
12 - 16 2 4
16 + 2 4
Total 50 100
Figuret No 3.14

AVERAGE ANNUAL RATE OF RETURN

60

50

40

30
% of Respondents

20

10

0
0-4% 4 - 8% 8 - 12% 12 - 16% 16% +

Interpretation:

As per the table 8% of respondents are expected to get annual rate

of return between 0-4% , 56% are expecting between 4-8% , 28% are
expecting between 8-12%, 4% are expecting between 12-16% and 4% of
the respondents are expected to get a return more than 16%.

27
 FACTORS CONSIDERED WHILE INVESTING IN COMPANY
SHARES

Table No 3.15

Factors Number of % of Respondents

Respondents
Market Value 16 32
Earnings Per Share 28 56
Book Value 6 12
Total 50 100
Figuret No 3.15

FACTORS CONSIDERED WHILE INVESTING IN COMPANY

SHARES

60

50

40

30
% of Respondents
20

10

0
Market Value Earnings Per Book Value
Share

Interpretation:

The above table shows that 32% of respondents consider

Market Value, 56% consider Earnings Per Share, whereas Book Value is
considered by 12% of respondents while investing in Company Shares.

28
 ARE YOU SATISFIED WITH YOUR INVESTMENT

Table No 3.16

Particulars Number of % of Respondents

Respondents
Yes 50 100
No 0 0
Total 50 100

Figure No 3.16

ARE YOU SATISFIED WITH YOUR INVESTMENT

120

100

80

60
% of Respondents

40

20

0
Yes No

Interpretation:

As per the above table the full respondents are satisfied with
their investment.

29
 CHAPTER 4

FINDINGS, SUGGESTIONS AND CONCLUSION

30
 FINDINGS

1. Majority of the respondents (64%) are under the age group of 20-40

years.

2. Most of the respondents (68%) are Male.

3. Majority of the respondents are under the income group between 25000-

50000.

4. Majority of the respondents (72%) prefer private sector banks and the

minority (28%) prefer the public sector banks.

5. Most of the respondents (80%) have Savings Deposit.

6. The findings shows that 64% of the respondents invest between

10-25% of their salary.

7. Most of the respondents invest for the purpose of regular income.

8. Majority of the respondents (76%) prefer to invest in Bank Deposits.

9. This analysis shows that 40% of the respondents consult family members

on their investment matters.

10. The findings shows that the majority of respondents (84%0 are getting

proper tax reductions.

31
11. Most of the respondents (76%) are taking Medium risk in their financial

decisions.

12. Majority of the respondents (76%) are satisfied with getting better

returns on their investments.

13. This analysis shows that 56% of respondents says that there is no or

minimal changes with their personal investments.

14. The findings shows that 56% of the respondents are expected to get an

average annual rate of return between 4-8%.

15. Most of the respondents (56%) are considering Earnings per share as a

factor while investing in Company Shares.

16. The findings shows that all the respondents are satisfied with their

investment.

32
 SUGGESTIONS

1. The Government should encourage NRI's by providing new trends in

investment opportunities.

2. The banks should take necessary steps to improve the interest rates of

NRE Account.

3. New Investment schemes should be provided by the banks for NRI's.

4. More publicity must be given for investment schemes in India.

5. Provide pensions and other useful schemes to the NRI's who are

emigrated from other countries due to financial crisis or any other reasons.

6. The banks must provide more advertisements and awareness about

investment schemes to NRI's who are not well educated, so that they will

get a better knowledge about the schemes.

33
 CONCLUSION

The growth of India's wealth will be strongly based on the

investment habit of NRI's. Investing in India today is the best thing foreign

investors (NRI's) can do for tomorrow. Nowadays, the investment habit of NRI's

has been increased because of the security , return and other facilities offered by

the bank. Each investment has common characteristics such as potential return as

well as risk. The future is uncertain and one must determine how much risk he is

willing to bear since higher return is associated with grater risk. The three aspects

of a decision to save are the ability to save, the willingness to save and

opportunity to save. A simple philosophy can word that NRI's are God and we

need to follow thus to survive and serve them better. Thus, the investment is a

serious subject that can have an impact on the well being of the investors as well

as the society.

34
 BIBLIOGRAPHY

BOOKS REFERRED:

 Ranganathan M & Madhumathi R - Investment Analysis and

Portfolio Management, Published by Dorling Kindersely.

 Preethi Singh - Investment Management, Himalaya

Publishing House, Mumbai.

 Bhalla V K - Investment Management, 18 th Revised Edition

S . Chand Publications.

WEBSITE:

 www.wikipedia.com

 www.yahoo.com

 www.scribd.com

35
APPENDIX

36
 "A STUDY ON INVESTMENT DECISION AMONG NRI'S
WITH SPECIAL REFERENCE TO THIRUVALLA TALUK"

QUESTIONNAIRE

Name :

1.Age : 20- 40 Years 40 - 60 Years Above 60 Years

2. Gender : Male Female

3. Income : Below 25000 25000-50000

50000-100000 Above 100000

4. In which bank do you have a bank account?

Private Sector Banks Public Sector Banks

5. Type of bank deposit.

Current Deposit Fixed Deposit

Savings Deposit

6. What percentage of your salary have you currently invested?

Less than 10%

10 - 25%

25 - 50%

More than 50%

37
7. Purpose of investment.

Regular Income Education of Children

Old age Securities Other

8. Preferred area of Investment.

Bank Deposits Insurance

Real Estate Company Securities

9. Who do you consult in investment matters?

Colleagues Family Members

Bank Agents Others

10. Are you getting proper tax reductions on your investment?

Yes No

11. What degree of risk have you taken with your financial decision in the
past?

Very Small Medium Large

12. Do you think NRI's get better returns on their investment?

Yes No

13. In the last two years how have your personal investments changed

Mostly towards lower risk

No or minimal changes

Mostly towards higher risk

38
14. What is the average annual rate of return would you expect to earn from
investment portfolio for next 10 years?

0% - 4% 4% - 8%

8% - 12% 12% - 16%

16% +

15. What factors do you consider if you are investing in company shares?

Market value

Earning per share

Book value

16. Are you satisfied with your investment?

Yes No

If No........................................................................

39
40